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1 II Federal Register / Vol. 67, No. 101 / Friday, May 24, 2002

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2 III

Contents Federal Register Vol. 67, No. 101

Friday, May 24, 2002

Agency for Healthcare Research and Quality Centers for Medicare & Medicaid Services NOTICES See Inspector General Office, Health and Human Services Reports and guidance documents; availability, etc.: Department Systems to Rate the Strength of Scientific Evidence, RULES 36606–36607 Medicare and Medicaid: Peer review organizations; name and other changes; Agricultural Marketing Service technical amendments, 36539–36540 RULES NOTICES Cotton classing, testing, and standards: Medicare and medicaid: Classification services to growers; 2002 user fees, 36501– Ambulatory surgical centers program— 36502 American Osteopathic Association; accreditation NOTICES recognition, 36611–36613 Meetings: Children and Families Administration Universal Cotton Standards Advisory Committee, 36560 See Refugee Resettlement Office Agriculture Department Coast Guard See Agricultural Marketing Service RULES See Animal and Plant Health Inspection Service Ports and waterways safety: See Forest Service Captain of the Port Detroit Zone, MI; safety zone, 36522– See Rural Utilities Service 36523 Kanawha River, Charleston, WV; safety zone, 36521– Animal and Plant Health Inspection Service 36522 NOTICES Ohio River, Portsmouth, OH; safety zone, 36519–36521 Reports and guidance documents; availability, etc.: Ohio River, WV; safety zone, 36523–36524 Clementines from Spain; risk management analysis, Regattas and marine parades: 36560–36561 Portsmouth 250th Birthday Party Fireworks, 36519 U.S. Naval Academy Crew Races; Annapolis, MD, 36518– Army Department 36519 See Engineers Corps PROPOSED RULES NOTICES Ports and waterways safety: Meetings: Lake Erie, Perry, OH; security zone, 36554–36556 Armed Forces Epidemiological Board, 36576–36577 NOTICES Reserve Officers’ Training Corps (ROTC) Program Environmental statements; availability, etc.: Subcommittee, 36577 Coast Guard National Distress and Response System, Patent licenses; non-exclusive, exclusive, or partially 36663–36664 exclusive: Lateral visual field testing device, 36577 Commerce Department Type A Botulinum neurotoxin, 36577 See Census Bureau See International Trade Administration Blind or Severely Disabled, Committee for Purchase From See National Institute of Standards and Technology People Who Are See National Oceanic and Atmospheric Administration See Committee for Purchase From People Who Are Blind NOTICES or Severely Disabled Agency information collection activities: Submission for OMB review; comment request, 36568– Census Bureau 36569 NOTICES Committee for Purchase From People Who Are Blind or Agency information collection activities: Severely Disabled Proposed collection; comment request, 36569 NOTICES Procurement list; additions and deletions, 36567–36568 Centers for Disease Control and Prevention NOTICES Committee for the Implementation of Textile Agreements Agency information collection activities: NOTICES Proposed collection; comment request, 36607 Cotton, wool, and man-made textiles: Committees; establishment, renewal, termination, etc.: Bangladesh, 36575–36576 Fetal Alcohol Syndrome and Fetal Alcohol Effect Cambodia, 36576 National Task Force, 36607 Meetings: Commodity Futures Trading Commission Mine Safety and Health Research Advisory Committee, RULES 36610–36611 Security futures products: National Institute for Occupational Safety and Health— Cash settlement and regulatory halt requirements, 36739– Safety and Occupational Health Study Section, 36611 36763

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NOTICES NOTICES Meetings; Sunshine Act, 36576 Air pollution control: State operating permits programs— Defense Department Georgia, 36590–36591 See Army Department Environmental statements; availability, etc.: See Engineers Corps Agency statements— Comment availability, 36591–36592 Weekly receipts, 36592–36593 Education Department Meetings: NOTICES Science Advisory Board, 36593–36595 Grants and cooperative agreements; availability, etc.: Pesticide, food, and feed additive petitions, 36596–36598 Mentoring programs, 36580–36583 Pesticide registration, cancellation, etc.: Postsecondary education— Pesticide registrants on false or misleading pesticide Jacob K. Javits Fellowship Program, 36583–36586 product brand names, 36595–36596 Special education and rehabilitative services— Superfund program: Training and information for parents of children with Prospective purchaser agreements— disabilities, 36773–36778 Utah Transit Authority Site, UT, 36598 Meetings: Institutional Quality and Integrity National Advisory Executive Office of the President Committee, 36586–36587 See Presidential Documents

Employment Standards Administration Federal Aviation Administration NOTICES RULES Minimum wages for Federal and federally-assisted Airworthiness directives: construction; general wage determination decisions, Raytheon, 36509–36511 36647–36648 Airworthiness standards: Special conditions— Energy Department Avidyne Corp., 36502–36504 See Federal Energy Regulatory Commission Israel Aircraft Industries Model 1124 airplane, 36507– NOTICES 36509 Committees; establishment, renewal, termination, etc.: Mirage PA-46-350P airplane, 36505–36507 Environmental Management Site-Specific Advisory Standard instrument approach procedures, 36511–36512 Board, 36587 NOTICES Meetings: Meetings: Environmental Management Site-Specific Advisory Satellite Operations Implementation Team Forum, 36664 Board— Oak Ridge, TN, 36587 Federal Communications Commission PROPOSED RULES Common carrier services: Engineers Corps Wireless telecommunications services— RULES Multipoint distribution service and instructional Danger zones and restricted areas: television fixed service; rulemaking petition; Port Gardner and East Waterway, WA; Everett Naval correction, 36676 Base, 36524–36525 NOTICES Federal Energy Regulatory Commission Environmental statements; notice of intent: NOTICES ACME Basin B Discharge Project, FL, 36577–36578 Electric rate and corporate regulation filings: Montauk Point Storm Damage Reduction Project, NY, Trans-Elect, Inc., et al., 36588–36589 36578–36579 Hydroelectric applications, 36589–36590 Port of Baltimore, MD; dredged material management Meetings: plan, 36579 Viking Gas Transmission Co.; settlement conference, Southern Golden Gate Estates Hydrologic Restoration, FL, 36590 36579–36580 Applications, hearings, determinations, etc.: Kiowa Power Partners, LLC; Oncor Electric Delivery Co., Environmental Protection Agency 36587–36588 RULES Air programs: Federal Housing Finance Board Fuels and fuel additives— NOTICES Gasoline containing lead or lead additives; prohibition Meetings: for highway use; motorcycle fuel inlet restrictor Federal Home Loan Banks; capital plans; hearing, 36598 exemption, 36765–36771 Motorcycle fuel inlet restrictor exemption; gasoline Federal Reserve System containing lead or lead additives; prohibition for PROPOSED RULES highway use; correction, 36676 Extensions of credit by Federal Reserve banks (Regulation Pesticides; tolerances in food, animal feeds, and raw A), 36544–36551 agricultural commodities: NOTICES Asien, etc., 36534–36539 Banks and bank holding companies: Polymers, 36525–36534 Change in bank control, 36598–36599

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Formations, acquisitions, and mergers, 36599 Health Resources and Services Administration NOTICES Federal Trade Commission Meetings: PROPOSED RULES Interdisciplinary, Community-Based Linkages Advisory Textile Fiber Products Identification Act; implementation: Committee, 36616 Lastol, 36551–36554 Housing and Urban Development Department Financial Management Service NOTICES See Fiscal Service Grants and cooperative agreements; availability, etc.: Fiscal Service Facilities to assist homeless— RULES Excess and surplus Federal property, 36642 Practice and procedure: Checks drawn on United States Treasury; endorsement Immigration and Naturalization Service and payment, 36517–36518 PROPOSED RULES Nonimmigrant classes: Fish and Wildlife Service Student and Exchange Visitor Information System; F, J, NOTICES and M nonimmigrants; information retention and Endangered and threatened species permit applications, reporting 36643 Correction, 36676 Environmental statements; availability, etc.: Fort St. Philip Project; Plaquemines Parish, LA; draft Indian Affairs Bureau environmental assessment, 36643–36644 NOTICES Incidental take permits— Natural resource damage assessments; availability, etc.: Dahle Property; Colorado Springs, CO; Preble’s Leviathan Mine, Alpine County, CA; natural resources meadow jumping mouse, 36644–36645 injured by hazardous substances releases; assessment plan, 36645–36646 Food and Drug Administration RULES Inspector General Office, Health and Human Services Animal drugs, feeds, and related products: Lincomycin, 36512–36514 Department NOTICES NOTICES Agency information collection activities: Program exclusions; list, 36616–36619 Proposed collection; comment request, 36613–36615 Meetings: Interior Department Anti-Infective Drugs Advisory Committee, 36615 See Fish and Wildlife Service Pharmaceutical Science Advisory Committee, 36615– See Indian Affairs Bureau 36616 See National Park Service See Surface Mining Reclamation and Enforcement Office Forest Service NOTICES NOTICES Reports and guidance documents; availability, etc.: Appealable decisions; legal notice: Treasury and General Government Appropriations Act FY Intermountain Region, 36561–36562 2001; information guidelines, 36642–36643 Environmental statements; notice of intent: Bankhead National Forest, AL, 36562–36566 Internal Revenue Service Meetings: RULES Resource Advisory Committees— Income taxes: Hood/Willamette, 36566–36567 Retirement plans; required distributions Correction, 36676 Health and Human Services Department See Agency for Healthcare Research and Quality International Trade Administration See Centers for Disease Control and Prevention NOTICES See Centers for Medicare & Medicaid Services Antidumping: See Food and Drug Administration Carbon and certain alloy steel wire rod from— See Health Resources and Services Administration Brazil; correction, 36570 See Inspector General Office, Health and Human Services Circular welded carbon-quality steel pipe from— Department China, 36570–36572 See National Institutes of Health Glycine from— See Public Health Service China, 36572–36573 See Refugee Resettlement Office Synthetic indigo from— See Substance Abuse and Mental Health Services China, 36573–36574 Administration RULES Medicare and Medicaid: Justice Department Peer review organizations; name and other changes; See Immigration and Naturalization Service technical amendments, 36539–36540 NOTICES Labor Department Grants and cooperative agreements; availability, etc.: See Employment Standards Administration State Innovation Grants, 36599–36606 See Labor Statistics Bureau

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Labor Statistics Bureau See Centers for Disease Control and Prevention NOTICES See Food and Drug Administration Agency information collection activities: See Health Resources and Services Administration Proposed collection; comment request, 36648 See National Institutes of Health See Substance Abuse and Mental Health Services National Council on Disability Administration NOTICES NOTICES Meetings: Meetings: Youth Advisory Committee, 36648–36649 National Toxicology Program— Study protocols for cancer bioassays of hexavalent National Highway Traffic Safety Administration chromium in rats and mice, 36620–36621 NOTICES National Toxicology Program: Motor vehicle safety standards: Carcinogens Report, Tenth Edition— Nonconforming vehicles— Substances, mixtures, and exposure circumstances for Importation eligibility; determinations, 36664–36665 listing or delisting, 36621–36622 National Institute of Standards and Technology NOTICES Refugee Resettlement Office Electron ionization mass spectral library; notice of intent to NOTICES update, 36574 Grants and cooperative agreements; availability, etc.: Meetings: Recently arrived refugees; support services, 36622–36632 Computer System Security and Privacy Advisory Board, Refugee Microenterprise Development Program, 36632– 36574–36575 36637

National Institutes of Health Research and Special Programs Administration NOTICES Recombinant DNA Research: Notice Under NIH Guidelines, NOTICES Hazardous materials: 36619–36620 Applications; exemptions, renewals, etc., 36665–36666 National Oceanic and Atmospheric Administration Pipeline safety: RULES Hazardous liquid transportation— Fishery conservation and management: Natural gas and hazardous liquid pipelines operators; Alaska; fisheries of Exclusive Economic Zone— safe excavation practices; implementation, 36666– Yellowfin sole, 36541 36667 PROPOSED RULES Fishery conservation and management: Rural Utilities Service Northeastern United States fisheries— PROPOSED RULES Atlantic mackerel, squid, and butterfish, 36556–36559 Electric loans: NOTICES RUS operational controls; exceptions under Section 306E Meetings: of the RE Act, 36542–36544 International Commission for Conservation of Atlantic Tunas, U.S. Section Advisory Committee, 36575 Securities and Exchange Commission National Park Service RULES NOTICES Electronic Data Gathering, Analysis, and Retrieval System Native American human remains and associated funerary (EDGAR): objects: Mandated EDGAR filing for foreign issuers, 36677–36709 Robert S. Peabody Museum of Archaeology, MA— Security futures products: Cultural items, 36646 Cash settlement and regulatory halt requirements, 36739– 36763 Nuclear Regulatory Commission PROPOSED RULES NOTICES Investment companies: Applications, hearings, determinations, etc.: Advertising rules; amendments, 36711–36737 AmerenUe, 36649–36650 NOTICES Agency information collection activities: Presidential Documents Proposed collection; comment request, 36650–36651 PROCLAMATIONS Self-regulatory organizations; proposed rule changes: Special observances: Chicago Board Options Exchange, Inc., 36651–36653 National Maritime Day (Proc. 7565), 36495–36496 National Association of Securities Dealers, Inc., 36653– National Missing Children’s Day (Proc. 7566), 36497– 36661 36498 Prayer for Peace, Memorial Day (Proc. 7567), 36499– 36500 Small Business Administration NOTICES Public Debt Bureau Agency information collection activities: See Fiscal Service Submission for OMB review; comment request, 36661– 36662 Public Health Service Disaster loan areas: See Agency for Healthcare Research and Quality New York, 36662

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State Department NOTICES NOTICES Privacy Act: Agency information collection activities: Systems of records, 36669–36671 Proposed collection; comment request, 36662 Veterans Affairs Department Substance Abuse and Mental Health Services NOTICES Administration Cost-of-living adjustments and headstone or marker NOTICES allowance rate, 36671–36674 Grants and cooperative agreements; availability, etc.: Meetings: Targeted Capacity Expansion Initiatives for Substance Health Services Research and Development Service Abuse Prevention and HIV Prevention in Minority Scientific Review and Evaluation Board, 36674 Communities Program, 36637–36640 National Research Advisory Council, 36674 Meetings: President’s Task Force to Improve Health Care Delivery Special Emphasis Panels, 36640–36642 for Our Nation’s Veterans, 36674–36675 Veterans Affairs Department Facilities Structural Safety Surface Mining Reclamation and Enforcement Office Advisory Committee, 36675 RULES Permanent program and abandoned mine land reclamation plan submissions: Separate Parts In This Issue Oklahoma, 36514–36516 Part II Surface Transportation Board Securities and Exchange Commission, 36677–36709 NOTICES Railroad services abandonment: Part III BHP Nevada Railroad Co., 36667–36668 Securities and Exchange Commission, 36711–36737 Duluth, Missabe and Iron Range Railway Co., 36668 Union Pacific Railroad Co., 36668–36669 Part IV Commodity Futures Trading Commission; Securities and Textile Agreements Implementation Committee Exchange Commission, 36739–36763 See Committee for the Implementation of Textile Agreements Part V Thrift Supervision Office Environmental Protection Agency, 36765–36771 NOTICES Part VI Agency information collection activities: Proposed collection; comment request, 36671 Education Department, 36773–36778

Transportation Department See Coast Guard Reader Aids See Federal Aviation Administration Consult the Reader Aids section at the end of this issue for See National Highway Traffic Safety Administration phone numbers, online resources, finding aids, reminders, See Research and Special Programs Administration and notice of recently enacted public laws. See Surface Transportation Board To subscribe to the Federal Register Table of Contents Treasury Department LISTSERV electronic mailing list, go to http:// See Fiscal Service listserv.access.gpo.gov and select Online mailing list See Internal Revenue Service archives, FEDREGTOC-L, Join or leave the list (or change See Thrift Supervision Office settings); then follow the instructions.

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CFR PARTS AFFECTED IN THIS ISSUE

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

3 CFR 47 CFR Proclamations Proposed Rules: 7565...... 36495 21...... 36676 7566...... 36497 74...... 36676 7567...... 36499 50 CFR 7 CFR 679...... 36541 28...... 36501 Proposed Rules: Proposed Rules: 648...... 36556 1710...... 36542 1717...... 36542 8 CFR Proposed Rules: 103...... 36676 214...... 36676 12 CFR Proposed Rules: 201...... 36544 14 CFR 23 (2 documents) ...... 36502, 36505 25...... 36507 39...... 36509 97...... 36511 16 CFR Proposed Rules: 303...... 36551 17 CFR 41...... 36740 230...... 36678 232...... 36678 239...... 36678 240 (2 documents) ...... 36678, 36740 249...... 36679 269...... 36679 Proposed Rules: 230...... 36712 239...... 36712 270...... 36712 274...... 36712 21 CFR 558...... 36512 26 CFR 1...... 36676 30 CFR 936...... 36514 31 CFR 240...... 36517 33 CFR 100 (2 documents) ...... 36518, 36519 165 (4 documents) ...... 36519, 36521, 36522, 36523 334...... 36524 Proposed Rules: 165...... 36554 40 CFR 80 (2 documents) ...... 36676, 36766 180 (2 documents) ...... 36525, 36534 42 CFR Ch. I ...... 36539 Ch. IV...... 36539 Ch. V...... 36539

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Federal Register Presidential Documents Vol. 67, No. 101

Friday, May 24, 2002

Title 3— Proclamation 7565 of May 21, 2002

The President National Maritime Day, 2002

By the President of the United States of America

A Proclamation

Our commercial maritime tradition dates back to the founding of our Nation; and it continues to play an important role today, moving passengers and freight, protecting our freedom, and linking our citizens to the world. Merchant mariners have served America with distinction throughout our history, but especially at critical moments. Before World War II, they made dangerous and difficult voyages carrying vital supplies to Europe. During that war, more than 700 United States merchant ships were lost to attack, and more than 6,000 merchant mariners lost their lives. Merchant mariners played a vital role in the Korean Conflict, especially in the rescue of 14,000 Korean civilians by the SS MEREDITH VICTORY. During the Vietnam War, ships crewed by civilian seamen carried 95 percent of the supplies used by our Armed Forces. Many of these ships sailed into combat zones under fire. In fact, the SS MAYAGUEZ incident involved the capture of mariners from the American merchant ship SS MAYAGUEZ. More recently, during the Persian Gulf War merchant mariners were vital to the largest sealift operation since D-Day. And after the tragic attacks of September 11th, professional merchant mariners and midshipmen from the United States Merchant Marine Academy transported personnel and equipment and moved food and supplies to lower Manhattan. Their efforts enhanced rescue operations and helped save many lives. Today, the men and women of the United States Merchant Marine and thousands of other workers in our Nation’s maritime industry continue to make immeasurable contributions to our economic strength and our ongo- ing efforts to build a more peaceful world. We must ensure our maritime system can meet the challenges of the 21st century. As cargo volume is expected to double within the next 20 years, a viable maritime network will help our country compete in our global economy. Accordingly, my Administration is working with government agencies, the shipping industry, labor, and environmental groups to ensure that our water- ways remain a sound transportation option that complements our overland transportation network. In recognition of the importance of the U.S. Merchant Marine, the Congress, by joint resolution approved on May 20, 1933, as amended, has designated May 22 of each year as ‘‘National Maritime Day,’’ and has authorized and requested that the President issue an annual proclamation calling for its appropriate observance. NOW, THEREFORE, I, GEORGE W. BUSH, President of the United States of America, do hereby proclaim May 22, 2002, as National Maritime Day. I call upon the people of the United States to celebrate this observance and to display the flag of the United States at their homes and in their communities. I also request that all ships sailing under the American flag dress ship on that day.

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IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of May, in the year of our Lord two thousand two, and of the Independ- ence of the United States of America the two hundred and twenty-sixth. W

[FR Doc. 02–13267 Filed 5–23–02; 8:45 am] Billing code 3195–01–P

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Proclamation 7566 of May 21, 2002

National Missing Children’s Day, 2002

By the President of the United States of America

A Proclamation

On May 25, 1979, 6-year old Etan Patz disappeared on his way to school in New York City. The ensuing search focused national attention on the tragedy of missing children, as well as the lack of resources and information available to help locate and recover missing children. Since that time, many high-profile cases and the dedicated efforts of parents, the law enforcement community, and others concerned with children’s well-being have generated even greater awareness about the need to protect children from criminals and other predators. During this year, we mark the 20th anniversary of the passage of the Missing Children Act, originally signed into law by President Reagan. Over the past two decades, the Department of Justice, along with many important community and faith-based partners, have made great progress in raising public awareness, improving public safety, locating and recovering missing children, and protecting children from exploitation on the Internet. Americans must continue to work together to ensure the safety of our chil- dren. The Department of Justice will commemorate National Missing Chil- dren’s Day by presenting six awards that recognize outstanding efforts to safeguard our youngest citizens. The recipients deserve our heartfelt thanks and appreciation for their dedicated work. As they are honored for their contributions, I urge all Americans to take an active role in upholding the safety of our communities and in defending the well-being of our chil- dren. NOW, THEREFORE, I, GEORGE W. BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim May 25, 2002, as National Missing Children’s Day. I call upon Americans to join me in commemorating this observance and to remember those young people who are missing. I also call on our citizens to recognize and thank those who work on behalf of missing children and their families. By renewing our commitment to protect our children from harm, we can save lives and prevent untold suffering and grief among the most vulnerable of our society.

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IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of May, in the year of our Lord two thousand two, and of the Independ- ence of the United States of America the two hundred and twenty-sixth. W

[FR Doc. 02–13268 Filed 5–23–02; 8:45 am] Billing code 3195–01–P

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Proclamation 7567 of May 21, 2002

Prayer for Peace, Memorial Day, 2002

By the President of the United States of America

A Proclamation Every Memorial Day, Americans remember the debt of gratitude we owe to our veterans who gave their lives for our country. On this important day, communities across our Nation stop to remember and to honor the great sacrifices made by our men and women in uniform. Since its beginnings, our country has faced many threats that have tested its courage. From war-torn battlefields and jungle skirmishes to conflicts at sea and air attacks, generations of brave men and women have fought and died to defeat tyranny and protect our democracy. Their sacrifices have made this Nation strong and our world a better place. Upwards of 48 million Americans have served the cause of freedom and more than a million have died to preserve our liberty. We also remember the more than 140,000 who were taken prisoner-of-war and the many others who were never accounted for. These memories remind us that the cost of war and the price of peace are great. The tradition of Memorial Day reinforces our Nation’s resolve to never forget those who gave their last full measure for America. As we engage in the war against terrorism, we also pray for peace. When America emerged from the Civil War, President Abraham Lincoln called on all Americans to ‘‘cherish a just and lasting peace.’’ In these extraordinary times, our Nation has once again been challenged, and Lincoln’s words remain our guiding prayer. We continue to rely on our brave and steadfast men and women in uniform to defend our freedom. United as a people, we pray for peace throughout the world. We also pray for the safety of our troops. This new generation follows an unbroken line of good, courageous, and unfaltering heroes who have never let our country down. As we commemorate this noble American holiday, we honor those who fell in defense of freedom. We honor them in our memory through solemn observances, with the love of a grateful Nation. In respect for their devotion to America, the Congress, by a joint resolution approved on May 11, 1950 (64 Stat. 158), has requested the President to issue a proclamation calling on the people of the United States to observe each Memorial Day as a day of prayer for permanent peace and designating a period on that day when the people of the United States might unite in prayer. The Congress, by Public Law 106–579, has also designated the minute beginning at 3:00 p.m. local time on that day as a time for all Americans to observe the National Moment of Remembrance. NOW, THEREFORE, I, GEORGE W. BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby designate Memorial Day, May 27, 2002, as a day of prayer for permanent peace, and I designate the hour beginning in each locality at 11:00 a.m. of that day as a time to unite in prayer. I also ask all Americans to observe the National Moment of Remembrance beginning at 3:00 p.m. local time on Memorial Day. I

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urge the press, radio, television, and all other media to participate in these observances. I also request the Governors of the United States and the Commonwealth of Puerto Rico, and the appropriate officials of all units of government, to direct that the flag be flown at half-staff until noon on this Memorial Day on all buildings, grounds, and naval vessels throughout the United States and in all areas under its jurisdiction and control. I also request the people of the United States to display the flag at half-staff from their homes for the customary forenoon period. IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of May, in the year of our Lord two thousand two, and of the Independ- ence of the United States of America the two hundred and twenty-sixth. W

[FR Doc. 02–13269 Filed 5–23–02; 8:45 am] Billing code 3195–01–P

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Rules and Regulations Federal Register Vol. 67, No. 101

Friday, May 24, 2002

This section of the FEDERAL REGISTER day comment period was provided for bales were produced; and, virtually all contains regulatory documents having general interested persons to respond to the of these bales were voluntarily applicability and legal effect, most of which proposed rule. No comments were submitted by growers for the are keyed to and codified in the Code of received, and no changes have been classification service. Federal Regulations, which is published under made in the provisions of the final rule. (4) Based on the average price paid to 50 titles pursuant to 44 U.S.C. 1510. growers for cotton from the 2000 crop of Executive Order 12866 The Code of Federal Regulations is sold by 49.8 cents per pound, 500 pound bales the Superintendent of Documents. Prices of This final rule has been determined to of cotton are worth an average of $249 new books are listed in the first FEDERAL be not significant for purposes of each. The user fee for classification REGISTER issue of each week. Executive Order 12866; and, therefore services, $1.45 per bale, is less than one has not been reviewed by the Office of percent of the value of an average bale Management and Budget (OMB). of cotton. (5) Due to insufficient demand, DEPARTMENT OF AGRICULTURE Executive Order 12988 computer punch cards would be Agricultural Marketing Service This final rule has been reviewed eliminated as an optional method of under Executive Order 12988, Civil disseminating classing data to 7 CFR Part 28 Justice Reform. It is not intended to producers. have retroactive effect. This rule would [Doc. # CN–02–001] not preempt any state or local laws, Paperwork Reduction Act RIN 0581–AC04 regulations, or policies unless they In compliance with OMB regulations present an irreconcilable conflict with (5 CFR part 1320), which implement the Revision of User Fees for 2002 Crop this rule. There are no administrative Paperwork Reduction Act (PRA) (44 Cotton Classification Services to procedures that must be exhausted prior U.S.C. 3501 et seq.), the information Growers to any judicial challenge to the collection requirements contained in the provisions of this rule. provisions to be amended by this final AGENCY: Agricultural Marketing Service, rule have been previously approved by USDA. Regulatory Flexibility Act OMB and were assigned OMB control ACTION: Final rule. Pursuant to requirements set forth in number 0581–0009 under the the Regulatory Flexibility Act (RFA) (5 Paperwork Reduction Act (44 U.S.C. SUMMARY: The Agricultural Marketing U.S.C. 601 et seq.) AMS has considered 3501 et seq.). Service (AMS) is raising user fees for the economic impact of this action on cotton producers for 2002 crop cotton small entities and has determined that Fees for Classification Under the Cotton Statistics and Estimates Act of 1927 classification services under the Cotton its implementation will not have a Statistics and Estimates Act in significant economic impact on a The user fee charged to cotton accordance with the formula provided substantial number of small entities. producers for High Volume Instrument in the Uniform Cotton Classing Fees Act The purpose of the RFA is to fit (HVI) classification services under the of 1987. The 2001 user fee for this regulatory actions to the scale of Cotton Statistics and Estimates Act (7 classification service was $1.35 per bale. businesses subject to such actions so U.S.C. 473a) was $1.35 per bale during This final rule would raise the fee for that small businesses will not be the 2001 harvest season as determined the 2002 crop to $1.45 per bale. The fee disproportionately burdened. There are by using the formula provided in the and the existing reserve are sufficient to an estimated 35,000 cotton growers in Uniform Cotton Classing Fees Act of cover the costs of providing the U.S. who voluntarily use the AMS 1987, as amended by Public Law 102– classification services, including costs cotton classing services annually, and 237. The fees cover salaries, costs of for administration and supervision. Also the majority of these cotton growers are equipment and supplies, and other because of insufficient demand, small businesses under the criteria overhead costs, including costs for computer punch cards would be established by the Small Business administration, and supervision. These eliminated as an optional method of Administration (13 CFR § 121.201). The changes will be made effective July 1, disseminating classing data to increase above the 2001 crop level as 2002, as provided by the Cotton producers. stated will not significantly affect small Statistics and Estimates Act. EFFECTIVE DATE: July 1, 2002. businesses as defined in the RFA This final rule establishes the user fee charged to producers for HVI FOR FURTHER INFORMATION CONTACT: because: classification at $1.45 per bale during Norma McDill, Deputy Administrator, (1) The fee increase represents a very small portion of the cost-per-unit the 2002 harvest season. Cotton Program, AMS, USDA, Room Public Law 102–237 amended the 2641–S, STOP 0224, 1400 Independence currently borne by those entities utilizing the services. (The 2001 user fee formula in the Uniform Cotton Classing Avenue, SW, Washington, DC 20250– Fees Act of 1987 for establishing the 0224. telephone (202) 720–2145, for classification services was $1.35 per bale; the fee for the 2002 crop is producer’s classification fee so that the facsimile (202) 690–1718, or e-mail producer’s fee is based on the prevailing [email protected]. increased to $1.45 per bale; the 2002 crop is estimated at 16,504,065 bales). method of classification requested by SUPPLEMENTARY INFORMATION: A (2) The fee for services will not affect producers during the previous year. HVI proposed rule detailing the revisions competition in the marketplace; and classing was the prevailing method of was published in the Federal Register (3) The use of classification services is cotton classification requested by on April 19, 2002. (67 FR 19357). A 15- voluntary. For the 2001 crop, 20,100,000 producers in 2001. Therefore, the 2002

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producer’s user fee for classification classification data was requested. The Dated: May 21, 2002. service is based on the 2001 base fee for fee for each additional method of Kenneth C. Clayton, HVI classification. receiving classification data in § 28.910 Administrator, Agricultural Marketing The fee was calculated by applying would remain at 5 cents per bale. Service. the formula specified in the Uniform Computer punched cards would be [FR Doc. 02–13230 Filed 5–22–02; 2:06 pm] Cotton Classing Fees Act of 1987, as eliminated as an optional method of BILLING CODE 3410–02–P amended by Public Law 102–237. The disseminating classing data to producers 2001 base fee for HVI classification for the 2002 and subsequent crops exclusive of adjustments, as provided by because there is an insufficient demand DEPARTMENT OF TRANSPORTATION the Act, was $2.22 per bale. An increase for the use of this method. Accordingly, of 2.51 percent, or 6 cents per bale this change would be reflected in Federal Aviation Administration increase due to the implicit price § 28.910 (a). The fee in § 28.910 (b) for deflator of the gross domestic product an owner receiving classification data 14 CFR Part 23 added to the $2.22 would result in a from the central database would remain 2002 base fee of $2.28 per bale. The at 5 cents per bale, and the minimum [Docket No. CE184; Special Condition 23– 118–SC] formula in the Act provides for the use charge of $5.00 for services provided per of the percentage change in the implicit monthly billing period would remain Special Conditions; Avidyne price deflator of the gross national the same. The provisions of § 28.910 (c) Corporation on the Cirrus Design product (as indexed for the most recent concerning the fee for new classification Corporation Model SR20/SR22; 12-month period for which statistics are memoranda issued from the central Protection of Systems for High available). However, gross national database for the business convenience of Intensity Radiated Fields (HIRF) product has been replaced by gross an owner without reclassification of the domestic product by the Department of cotton will remain the same. AGENCY: Federal Aviation Commerce as a more appropriate The fee for review classification in Administration (FAA), DOT. measure for the short-term monitoring § 28.911 would be increased from $1.35 ACTION: Final special conditions; request and analysis of the U.S. economy. for comments. The number of bales to be classed by to $1.45 per bale. The fee for returning samples after the United States Department of SUMMARY: These special conditions are Agriculture from the 2002 crop is classification in § 28.911 would remain issued to Avidyne Corporation, 55 Old estimated at 16,504,065 bales. The 2002 at 40 cents per sample. Bedford Road, Lincoln, Massachusetts, base fee was decreased 15 percent based List of Subjects in 7 CFR Part 28 01773 for a Supplemental Type on the estimated number of bales to be Certificate for the Cirrus Design classed (1 percent for every 100,000 Administrative practice and Corporation SR20/SR22 airplane. This bales or portion thereof above the base procedure, Cotton, Cotton samples, airplane will have novel and unusual of 12,500,000, limited to a maximum Grades, Market news, Reporting and design features when compared to the adjustment of 15 percent). This record keeping requirements, Standards, state of technology envisaged in the percentage factor amounts to a 35 cents Staples, Testing, Warehouses. applicable airworthiness standards. per bale reduction and was subtracted For the reasons set forth in the These novel and unusual design from the 2002 base fee of $2.28 per bale, preamble, 7 CFR Part 28 is amended as features include the installation of an resulting in a fee of $1.93 per bale. follows: electronic flight instrument system With a fee of $1.93 per bale, the (EFIS) display Model 700–00006–XXX– projected operating reserve would be PART 28—[AMENDED] ( ) manufactured by Avidyne 51.3 percent. The Act specifies that the Corporation for which the applicable Secretary shall not establish a fee 1. The authority citation for 7 CFR regulations do not contain adequate or which, when combined with other Part 28, Subpart D, continues to read as appropriate airworthiness standards for sources of revenue, will result in a follows: the protection of these systems from the projected operating reserve of more than Authority: 7 U.S.C. 471–476. effects of high intensity radiated fields 25 percent. Accordingly, the fee of $1.93 (HIRF). These special conditions must be reduced by 48 cents per bale, 2. In § 28.909, paragraph (b) is revised to read as follows: contain the additional safety standards to $1.45 per bale, to provide an ending that the Administrator considers accumulated operating reserve for the § 28.909 Costs. necessary to establish a level of safety fiscal year of 25 percent of the projected * * * * * equivalent to the airworthiness cost of operating the program. This standards applicable to this airplane. would establish the 2002 season fee at (b) The cost of High Volume DATES: $1.45 per bale. Instrument (HVI) cotton classification The effective date of these Accordingly, § 28.909, paragraph (b) service to producers is $1.45 per bale. special conditions is May 7, 2002. would be revised to reflect the increase * * * * * Comments must be received on or before June 24, 2002. of the HVI classification fee from $1.35 3. In § 28.910, paragraph (a) (3) is ADDRESSES: to $1.45 per bale. removed: Comments may be mailed As provided for in the Uniform Cotton in duplicate to: Federal Aviation Classing Fees Act of 1987, as amended, * * * * * Administration, Regional Counsel, a 5 cent per bale discount would 4. In § 28.911, the last sentence of ACE–7, Attention: Rules Docket Clerk, continue to be applied to voluntary paragraph (a) is revised to read as Docket No. CE184, Room 506, 901 centralized billing and collecting agents follows: Locust, Kansas City, Missouri 64106. All as specified in § 28.909 (c). § 28.911 Review classification. comments must be marked: Docket No. Growers or their designated agents CE184. Comments may be inspected in receiving classification data would (a) * * * The fee for review the Rules Docket weekdays, except continue to incur no additional fees if classification is $1.45 per bale. Federal holidays, between 7:30 a.m. and only one method of receiving * * * * * 4 p.m.

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FOR FURTHER INFORMATION CONTACT: Type Certification Basis Special conditions, as appropriate, as Ervin Dvorak, Aerospace Engineer, Under the provisions of 14 CFR part defined in § 11.19, are issued in Standards Office (ACE–110), Small 21, § 21.101, Avidyne Corporation must accordance with § 11.38 after public Airplane Directorate, Aircraft show that the Cirrus SR20/SR22 aircraft notice and become part of the type Certification Service, Federal Aviation meet the following provisions, or the certification basis in accordance with 14 Administration, 901 Locust, Room 301, applicable regulations in effect on the CFR part 21 § 21.101. Special conditions are initially Kansas City, Missouri 64106; telephone date of application for the change to the applicable to the model for which they (816) 329–4123. Cirrus SR20/SR22. are issued. Should the applicant apply SUPPLEMENTARY INFORMATION: The FAA Model SR20: Part 23 of the Federal for a supplemental type certificate to has determined that notice and Aviation Regulations effective February modify any other model already opportunity for prior public comment 1, 1965, as amended by 23–1 through included on the same type certificate to hereon are impracticable because these 23–47, except as follows: 14 CFR part procedures would significantly delay incorporate the same novel or unusual 23, §§ 23.573, 23.575, 23.611, 23.657, design feature, the special conditions issuance of the approval design and 23.673 through Amendment 23–48; 14 thus delivery of the affected aircraft. In would also apply to the other model CFR §§ 23.783, 23.785, 23.867, 23.1303, under the provisions of § 21.101. addition, the substance of these special 23.1307, 23.1309, 23.1311, 23.1321, conditions has been subject to the 23.1323, 23.1329, 23,1361, 23.1383, Novel or Unusual Design Features public comment process in several prior 23.1401, 23.1431, 23.1435 through instances with no substantive comments Carpenter Avionics Inc. plans to Amendment 23–49; 14 CFR part 23, incorporate certain novel and unusual received. The FAA, therefore, finds that §§ 23.3, 23.25, 23.143, 23.145, 23.155, good cause exists for making these design features into an airplane for 23.1325, 23.1521, 23.1543, 23.1555, which the airworthiness standards do special conditions effective upon 23.1559, 23.1567, 23.1583, 23.1585, issuance. not contain adequate or appropriate 23.1589 through Amendment 23–50; 14 safety standards for protection from the Comments Invited CFR part 23, §§ 23.777, 23.779, 23.901, effects of HIRF. These features include Interested persons are invited to 23.907, 23.955, 23.959, 23.963, 23.965, EFIS, which are susceptible to the HIRF submit such written data, views, or 23.973, 23.975, 23.1041, 23.1091, environment, that were not envisaged arguments as they may desire. 23.1093, 23.1107, 23.1121, 23.1141, by the existing regulations for this type Communications should identify the 23.1143, 23.1181, 23.1191, 23.1337 of airplane. regulatory docket or notice number and through Amendment 23–51; 14 CFR part 23, § 23.1305 through Amendment 23– Protection of Systems From High be submitted in duplicate to the address Intensity Radiated Fields (HIRF) specified above. All communications 52. received on or before the closing date Model SR22: Part 23 of the Federal Recent advances in technology have for comments will be considered by the Aviation Regulations effective February given rise to the application in aircraft Administrator. The special conditions 1, 1965, as amended by 23–1 through designs of advanced electrical and may be changed in light of the 23–53, except as follows: § 23.301 electronic systems that perform comments received. All comments through Amendment 47; §§ 23.855, functions required for continued safe received will be available in the Rules 23.1326, 23.1359, not applicable. 14 flight and landing. Due to the use of Docket for examination by interested CFR part 36 dated December 1, 1969, as sensitive solid state advanced persons, both before and after the amended by current amendment as of components in analog and digital closing date for comments. A report the date of type certification. electronics circuits, these advanced summarizing each substantive public Equivalent Levels of Safety finding systems are readily responsive to the contact with FAA personnel concerning (ACE–96–5) made per the provisions of transient effects of induced electrical this rulemaking will be filed in the 14 CFR part 23, § 23.221; Refer to FAA current and voltage caused by the HIRF. docket. Commenters wishing the FAA to ELOS letter dated June 10, 1998 for The HIRF can degrade electronic acknowledge receipt of their comments models SR20, SR22. Equivalent Levels systems performance by damaging submitted in response to this action of Safety finding (ACE–00–09) made per components or upsetting system must include a self-addressed, stamped the provisions of 14 CFR part 23, functions. postcard on which the following §§ 23.1143(g) and 23.1147(b); Refer to Furthermore, the HIRF environment statement is made: ‘‘Comments to FAA ELOS letter dated September 11, has undergone a transformation that was Docket No. CE184.’’ The postcard will 2000, for model SR22. Equivalent Levels not foreseen when the current be date stamped and returned to the of Safety finding (ACE–01–01) made per requirements were developed. Higher commenter. the provisions of 14 CFR part 23, energy levels are radiated from §§ 23.1143(g) and 23.1147(b); Refer to transmitters that are used for radar, Background FAA ELOS letter dated February 14, radio, and television. Also, the number On April 20, 2001, Avidyne 2000, for model SR20. of transmitters has increased Corporation, 55 Old Bedford Road, Special Condition (23–ACE–88) for significantly. There is also uncertainty Lincoln, Massachusetts, 01773, made an ballistic parachute; Refer to FAA letter concerning the effectiveness of airframe application to the FAA for a new November 25, 1997, for models SR20, shielding for HIRF. Furthermore, Supplemental Type Certificate for the SR22. coupling to cockpit-installed equipment Cirrus Design Corporation Models through the cockpit window apertures is Discussion SR20/SR22 airplanes. The Cirrus SR20/ undefined. SR22 are currently approved under TC If the Administrator finds that the The combined effect of the No. A00009CH. The proposed applicable airworthiness standards do technological advances in airplane modification incorporates a novel or not contain adequate or appropriate design and the changing environment unusual design feature, such as digital safety standards because of novel or has resulted in an increased level of avionics consisting of an EFIS, that is unusual design features of an airplane, vulnerability of electrical and electronic vulnerable to HIRF external to the special conditions are prescribed under systems required for the continued safe airplane. the provisions of § 21.16. flight and landing of the airplane.

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Effective measures against the effects of approval by the FAA, to identify either impracticable, and good cause exists for exposure to HIRF must be provided by electrical or electronic systems that adopting these special conditions upon the design and installation of these perform critical functions. The term issuance. The FAA is requesting systems. The accepted maximum energy ‘‘critical’’ means those functions whose comments to allow interested persons to levels in which civilian airplane system failure would contribute to, or cause, a submit views that may not have been installations must be capable of failure condition that would prevent the submitted in response to the prior operating safely are based on surveys continued safe flight and landing of the opportunities for comment described and analysis of existing radio frequency airplane. The systems identified by the above. emitters. These special conditions hazard analysis that perform critical require that the airplane be evaluated functions are candidates for the List of Subjects in 14 CFR Part 23 under these energy levels for the application of HIRF requirements. A protection of the electronic system and system may perform both critical and Aircraft, Aviation safety, Signs and its associated wiring harness. These non-critical functions. Primary symbols. external threat levels, which are lower electronic flight display systems, and Citation than previous required values, are their associated components, perform believed to represent the worst case to critical functions such as attitude, The authority citation for these which an airplane would be exposed in altitude, and airspeed indication. The special conditions is as follows: the operating environment. HIRF requirements apply only to critical Authority: 49 U.S.C. 106(g), 40113 and These special conditions require functions. qualification of systems that perform Compliance with HIRF requirements 44701; 14 CFR part 21, § 21.16 and § 21.101; critical functions, as installed in aircraft, may be demonstrated by tests, analysis, and 14 CFR 11.38 and 11.19. to the defined HIRF environment in models, similarity with existing The Special Conditions paragraph 1 or, as an option to a fixed systems, or any combination of these. value using laboratory tests, in Service experience alone is not Accordingly, pursuant to the paragraph 2, as follows: acceptable since normal flight authority delegated to me by the (1) The applicant may demonstrate operations may not include an exposure Administrator, the following special that the operation and operational to the HIRF environment. Reliance on a conditions are issued as part of the type capability of the installed electrical and system with similar design features for certification basis for Cirrus Design electronic systems that perform critical redundancy as a means of protection Corporation SR20/SR22 airplanes functions are not adversely affected against the effects of external HIRF is modified by Avidyne Corporation to when the aircraft is exposed to the HIRF generally insufficient since all elements add an EFIS. environment defined below: of a redundant system are likely to be 1. Protection of Electrical and exposed to the fields concurrently. Field strength (volts Electronic Systems from High Intensity Applicability Frequency per meter) Radiated Fields (HIRF). Each system that performs critical functions must be Peak Average As discussed above, these special conditions are applicable to Cirrus designed and installed to ensure that the 10 kHz–100 kHz ...... 50 50 Design Corporation SR20/SR22 operations, and operational capabilities 100 kHz–500 kHz ..... 50 50 airplanes. Should Avidyne Corporation of these systems to perform critical 500 kHz–2 MHz ...... 50 50 apply at a later date for a supplemental functions, are not adversely affected 2 MHz–30 MHz ...... 100 100 type certificate to modify any other when the airplane is exposed to high 30 MHz–70 MHz ...... 50 50 model on the same type certificate to intensity radiated electromagnetic fields 70 MHz–100 MHz ..... 50 50 100 MHz–200 MHz ... 100 100 incorporate the same novel or unusual external to the airplane. 200 MHz–400 MHz ... 100 100 design feature, the special conditions 2. For the purpose of these special would apply to that model as well 400 MHz–700 MHz ... 700 50 conditions, the following definition 700 MHz–1 GHz ...... 700 100 under the provisions of § 21.101. 1 GHz–2 GHz ...... 2000 200 applies: Critical Functions: Functions 2 GHz–4 GHz ...... 3000 200 Conclusion whose failure would contribute to, or 4 GHz–6 GHz ...... 3000 200 This action affects only certain novel cause, a failure condition that would 6 GHz–8 GHz ...... 1000 200 or unusual design features on one model prevent the continued safe flight and 8 GHz–12 GHz ...... 3000 300 of airplane. It is not a rule of general landing of the airplane. 12 GHz–18 GHz ...... 2000 200 18 GHz–40 GHz ...... 600 200 applicability and affects only the Issued in Kansas City, Missouri on May 7, applicant who applied to the FAA for 2002. The field strengths are expressed in terms approval of these features on the Dorenda D. Baker, of peak root-mean-square (rms) values over airplane. the complete modulation period. The substance of these special Acting Manager, Small Airplane Directorate, or, conditions has been subjected to the Aircraft Certification Service. (2) The applicant may demonstrate by notice and comment period in several [FR Doc. 02–13131 Filed 5–23–02; 8:45 am] a system test and analysis that the prior instances and has been derived BILLING CODE 4910–13–P electrical and electronic systems that without substantive change from those perform critical functions can withstand previously issued. It is unlikely that a minimum threat of 100 volts rms per prior public comment would result in a meter, electrical field strength, from 10 significant change from the substance kHz to 18 GHz. When using this test to contained herein. For this reason, and show compliance with the HIRF because a delay would significantly requirements, no credit is given for affect the certification of the airplane, signal attenuation due to installation. which is imminent, the FAA has A preliminary hazard analysis must determined that prior public notice and be performed by the applicant, for comment are unnecessary and

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DEPARTMENT OF TRANSPORTATION SUPPLEMENTARY INFORMATION: The FAA in effect on the date of application for has determined that notice and the change to the Mirage PA–46–350P. Federal Aviation Administration opportunity for prior public comment 14 CFR part 23, effective February 1, hereon are impracticable because these 1965, as amended by Amendment 23– 14 CFR Part 23 procedures would significantly delay 25, effective March 6, 1980: FAR [Docket No. CE183, Special Condition 23– issuance of the approval design and 25.783(e) as amended by Amendment 117–SC] thus delivery of the affected aircraft. In 25–54, effective October 14, 1980; 14 addition, the substance of these special CFR part 25, § 25.831(c) and (d) as Special Conditions; S–TEC conditions has been subject to the amended by Amendment 25–41, Corporation Mirage PA–46–350P With public comment process in several prior effective September 1, 1977, and 14 CFR Single Sided EFIS Protection of instances with no substantive comments part 36, Appendix F through Systems for High Intensity Radiated received. The FAA, therefore, finds that Amendment 36–15, effective May 6, Fields (HIRF) good cause exists for making these 1988, when equipped with a 2-bladed special conditions effective upon propeller or 14 CFR part 36, Appendix AGENCY: Federal Aviation issuance. G through Amendment 36–16, effective Administration (FAA), DOT. Comments Invited December 18, 1988, when equipped ACTION: Final special conditions; request with optional 3-blade propeller; Special for comments. Interested persons are invited to Conditions No. 23–ACE–53, Docket No. submit such written data, views, or 082CE; 14 CFR part 23, §§ 23.1309 and SUMMARY: These special conditions are arguments as they may desire. 23.1311 as amended by Amendment 49; issued to S–TEC Corporation, One S– Communications should identify the and the special conditions adopted by TEC Way, Mineral Wells TX 76067 for regulatory docket or notice number and this rule making action. a Supplemental Type Certificate for a be submitted in duplicate to the address single sided Electronic Flight specified above. All communications Discussion Instrument System (EFIS) installed in received on or before the closing date If the Administrator finds that the the Mirage PA–46–350P airplane. This for comments will be considered by the applicable airworthiness standards do airplane will have novel and unusual Administrator. The special conditions not contain adequate or appropriate design features when compared to the may be changed in light of the safety standards because of novel or state of technology envisaged in the comments received. All comments unusual design features of an airplane, applicable airworthiness standards. received will be available in the Rules special conditions are prescribed under These novel and unusual design Docket for examination by interested the provisions of § 21.16. features include the installation of persons, both before and after the Special conditions, as appropriate, as electronic flight instrument system closing date for comments. A report defined in § 11.19, are issued in (EFIS) ‘‘Magic’’ display manufactured summarizing each substantive public accordance with § 11.38 after public by Meggitt for which the applicable contact with FAA personnel concerning notice and become part of the type regulations do not contain adequate or this rulemaking will be filed in the certification basis in accordance with appropriate airworthiness standards for docket. Commenters wishing the FAA to § 21.101. the protection of these systems from the acknowledge receipt of their comments Special conditions are initially effects of high intensity radiated fields submitted in response to this action applicable to the model for which they (HIRF). These special conditions must include a self-addressed, stamped are issued. Should the applicant apply contain the additional safety standards postcard on which the following for a supplemental type certificate to that the Administrator considers statement is made: ‘‘Comments to modify any other model already necessary to establish a level of safety Docket No. CE183.’’ The postcard will included on the same type certificate to equivalent to the airworthiness be date stamped and returned to the incorporate the same novel or unusual standards applicable to this airplane. commenter. design feature, the special conditions would also apply to the other model DATES: The effective date of these Background special conditions is May 7, 2002. under the provisions of § 21.101. On March 12, 2001, S–TEC Comments must be received on or Novel or Unusual Design Features before June 24, 2002. Corporation, One S–TEC Way, Mineral Wells, TX 76067 made an application S–TEC plans to incorporate certain ADDRESSES: Comments may be mailed for a supplementary Type Certificate for novel and unusual design features into in duplicate to: Federal Aviation a single sided EFIS installed in the Piper an airplane for which the airworthiness Administration, Regional Counsel, Mirage PA–46–350P airplane. The Piper standards do not contain adequate or ACE–7, Attention: Rules Docket Clerk, Mirage PA–46–350P airplane is appropriate safety standards for Docket No. CE183, Room 506, 901 currently approved under TC No. protection from the effects of HIRF. Locust, Kansas City, Missouri 64106. All A25SO. The modification incorporates a These features include EFIS, which are comments must be marked: Docket No. novel or unusual design feature, such as susceptible to the HIRF environment, CE183. Comments may be inspected in digital avionics consisting of an EFIS, that were not envisaged by the existing the Rules Docket weekdays, except that is vulnerable to HIRF external to regulations for this type of airplane. Federal holidays, between 7:30 a.m. and the airplane. 4:00 p.m. Protection of Systems From High FOR FURTHER INFORMATION CONTACT: Type Certification Basis Intensity Radiated Fields (HIRF) Ervin Dvorak, Aerospace Engineer, Under the provisions of 14 CFR part Recent advances in technology have Standards Office (ACE–110), Small 21, § 21.101, S–TEC Corporation, One given rise to the application in aircraft Airplane Directorate, Aircraft S–TEC Way, Mineral Wells, TX 76067 designs of advanced electrical and Certification Service, Federal Aviation must show that the single-sided EFIS electronic systems that perform Administration, 901 Locust, Room 301, installed in the Piper Mirage PA46– functions required for continued safe Kansas City, Missouri 64106; telephone 350P airplane meets the following flight and landing. Due to the use of (816) 329–4123. provisions, or the applicable regulations sensitive solid state advanced

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components in analog and digital Field strength (volts Applicability electronics circuits, these advanced Frequency per meter) As discussed above, these special systems are readily responsive to the Peak Average conditions are applicable to Piper transient effects of induced electrical Mirage PA–46–350P. Should S–TEC current and voltage caused by the HIRF. 500 kHz–2 MHz ...... 50 50 apply at a later date for a supplemental The HIRF can degrade electronic 2 MHz–30 MHz ...... 100 100 type certificate to modify any other systems performance by damaging 30 MHz–70 MHz ...... 50 50 model on the same type certificate to components or upsetting system 70 MHz–100 MHz ..... 50 50 incorporate the same novel or unusual functions. 100 MHz–200 MHz ... 100 100 design feature, the special conditions Furthermore, the HIRF environment 200 MHz–400 MHz ... 100 100 would apply to that model as well has undergone a transformation that was 400 MHz–700 MHz ... 700 50 under the provisions of § 21.101. not foreseen when the current 700 MHz–1 GHz ...... 700 100 requirements were developed. Higher 1 GHz–2 GHz ...... 2000 200 Conclusion 2 GHz–4 GHz ...... 3000 200 energy levels are radiated from This action affects only certain novel transmitters that are used for radar, 4 GHz–6 GHz ...... 3000 200 6 GHz–8 GHz ...... 1000 200 or unusual design features on one model radio, and television. Also, the number of airplane. It is not a rule of general of transmitters has increased 8 GHz–12 GHz ...... 3000 300 12 GHz–18 GHz ...... 2000 200 applicability and affects only the significantly. There is also uncertainty 18 GHz–40 GHz ...... 600 200 applicant who applied to the FAA for concerning the effectiveness of airframe approval of these features on the shielding for HIRF. Furthermore, The field strengths are expressed in terms of peak root-mean-square (rms) values. airplane. coupling to cockpit-installed equipment The substance of these special through the cockpit window apertures is or, conditions has been subjected to the undefined. notice and comment period in several The combined effect of the (2) The applicant may demonstrate by prior instances and has been derived technological advances in airplane a system test and analysis that the without substantive change from those design and the changing environment electrical and electronic systems that has resulted in an increased level of perform critical functions can withstand previously issued. It is unlikely that vulnerability of electrical and electronic a minimum threat of 100 volts per prior public comment would result in a systems required for the continued safe meter, electrical field strength, from 10 significant change from the substance flight and landing of the airplane. kHz to 18 GHz. When using this test to contained herein. For this reason, and Effective measures against the effects of show compliance with the HIRF because a delay would significantly exposure to HIRF must be provided by requirements, no credit is given for affect the certification of the airplane, the design and installation of these signal attenuation due to installation. which is imminent, the FAA has systems. The accepted maximum energy determined that prior public notice and A preliminary hazard analysis must comment are unnecessary and levels in which civilian airplane system be performed by the applicant, for installations must be capable of impracticable, and good cause exists for approval by the FAA, to identify either adopting these special conditions upon operating safely are based on surveys electrical or electronic systems that and analysis of existing radio frequency issuance. The FAA is requesting perform critical functions. The term comments to allow interested persons to emitters. These special conditions ‘‘critical’’ means those functions whose require that the airplane be evaluated submit views that may not have been failure would contribute to, or cause, a submitted in response to the prior under these energy levels for the failure condition that would prevent the protection of the electronic system and opportunities for comment described continued safe flight and landing of the above. its associated wiring harness. These airplane. The systems identified by the external threat levels, which are lower hazard analysis that perform critical List of Subjects in 14 CFR Part 23 than previous required values, are functions are candidates for the believed to represent the worst case to Aircraft, Aviation safety, Signs and application of HIRF requirements. A symbols. which an airplane would be exposed in system may perform both critical and the operating environment. non-critical functions. Primary Citation These special conditions require electronic flight display systems, and qualification of systems that perform The authority citation for these their associated components, perform critical functions, as installed in aircraft, special conditions is as follows: critical functions such as attitude, to the defined HIRF environment in Authority: 49 U.S.C. 106(g), 40113 and altitude, and airspeed indication. The paragraph 1 or, as an option to a fixed 44701; 14 CFR 21.16 and 21.17; and 14 CFR HIRF requirements apply only to critical value using laboratory tests, in 11.38 and 11.19 functions. paragraph 2, as follows: The Special Conditions (1) The applicant may demonstrate Compliance with HIRF requirements that the operation and operational may be demonstrated by tests, analysis, Accordingly, pursuant to the capability of the installed electrical and models, similarity with existing authority delegated to me by the electronic systems that perform critical systems, or any combination of these. Administrator, the following special functions are not adversely affected Service experience alone is not conditions are issued as part of the type when the aircraft is exposed to the HIRF acceptable since normal flight certification basis for Piper Mirage PA– environment defined below: operations may not include an exposure 46–350P airplane modified by S–TEC to the HIRF environment. Reliance on a Corporation to add an EFIS. Field strength (volts system with similar design features for 1. Protection of Electrical and Frequency per meter) redundancy as a means of protection Electronic Systems from High Intensity Peak Average against the effects of external HIRF is Radiated Fields (HIRF). Each system generally insufficient since all elements that performs critical functions must be 10 kHz–100 kHz ...... 50 50 of a redundant system are likely to be designed and installed to ensure that the 100 kHz–500 kHz ..... 50 50 exposed to the fields concurrently. operations, and operational capabilities

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of these systems to perform critical Rules Docket (ANM–113), Docket No. which the docket number appears. We functions, are not adversely affected NM221, 1601 Lind Avenue SW., will stamp the date on the postcard and when the airplane is exposed to high Renton, Washington, 98055–4056; or mail it back to you. intensity radiated electromagnetic fields delivered in duplicate to the Transport Background external to the airplane. Airplane Directorate at the above 2. For the purpose of these special address. Comments must be marked: On April 12, 2002, Duncan Aviation, conditions, the following definition Docket No. NM221. Comments may be Inc., 15745 South Airport Road, Battle applies: Critical Functions: Functions inspected in the Rules Docket Creek, MI, 49015, applied for a whose failure would contribute to, or weekdays, except Federal holidays, supplemental type certificate (STC) to cause, a failure condition that would between 7:30 a.m. and 4 p.m. modify the Israel Aircraft Industries (IAI) Model 1124 airplane listed on prevent the continued safe flight and FOR FURTHER INFORMATION CONTACT: landing of the airplane. Type Certificate No. A2SW. The Model Meghan Gordon, FAA, Standardization 1124 is a twin engine, small transport Issued in Kansas City, Missouri on May 7, Branch, ANM–113, Transport Airplane airplane. It is capable of carrying two 2002. Directorate, Aircraft Certification flightcrew members and up to ten Dorenda D. Baker, Service, 1601 Lind Avenue SW., passengers. The modification Acting Manager, Small Airplane Directorate, Renton, Washington, 98055–4056; incorporates the installation of an air Aircraft Certification Service. telephone (425) 227–2138; facsimile data display system. The air data [FR Doc. 02–13133 Filed 5–23–02; 8:45 am] (425) 227–1149. display system displays critical flight BILLING CODE 4910–13–P SUPPLEMENTARY INFORMATION: The FAA parameters to the flightcrew. These has determined that notice and systems can be susceptible to disruption opportunity for prior public comment to command and/or response signals as DEPARTMENT OF TRANSPORTATION hereon are impracticable because these a result of electrical and magnetic procedures would significantly delay interference. This disruption of signals Federal Aviation Administration issuance of the approval design and could result in loss of all critical flight thus delivery of the affected airplanes. displays and announcement functions 14 CFR Part 25 In addition, the substance of these or present misleading information to the [Docket No. NM221, Special Conditions No. special conditions has been subject to pilot. 25–203–SC] the public comment process in several Type Certification Basis prior instances with no substantive Special Conditions: Israel Aircraft comments received. The FAA therefore Under the provisions of 14 CFR Industries (IAI) Model 1124 Airplane; finds that good cause exists for making 21.101, Duncan Aviation must show High-Intensity Radiated Fields (HIRF) these special conditions effective upon that the Israel Aircraft Industries Model 1124 airplanes, as changed, continue to AGENCY: Federal Aviation issuance. meet the applicable provisions of the Administration, DOT. Comments Invited regulations incorporated by reference in ACTION: Final special conditions; request The FAA invites interested persons to Type Certificate No. A2SW, or the for comments. participate in this rulemaking by applicable regulations in effect on the submitting written comments, data, or date of application for the change. The SUMMARY: These special conditions are views. The most helpful comments issued Israel Aircraft Industries (IAI) regulations incorporated by reference in reference a specific portion of the Model 1124 airplanes modified by the type certificate are commonly special conditions, explain the reason Duncan Aviation, Inc. These modified referred to as the ‘‘original type for any recommended change, and airplanes will have novel and unusual certification basis.’’ The certification include supporting data. We ask that design features when compared to the basis for the modified Israel Aircraft you send us two copies of written state of technology envisioned in the Industries Model 1124 airplane includes comments. airworthiness standards for transport Civil Aviation Regulations (CAR) 4b, We will file in the docket all category airplanes. The modification effective 31 December 1953, including comments we receive, as well as a incorporates the installation of an air amendments through 4b–11, 4b–12, report summarizing each substantive data display unit that displays critical paragraphs 4b.132(e), 4b.151(a), 4b.155, public contact with FAA personnel flight parameters to the flightcrew. The 4b.156, 4b.157, 4b.158, 4b.160, 4b.162, concerning these special conditions. applicable airworthiness standards do 4b.191, 4b.210(b)(5), 4b.603(k), 4b.711, The docket is available for public not contain adequate or appropriate and paragraphs pertaining to engine fire inspection before and after the comment safety standards for the protection of shielding 14 CFR part 25, dated closing date. If you wish to review the these systems from the effects of high- February 1, 1965, including docket in person, go to the address in intensity radiated fields. The special Amendments 25–1 through 25–20, as the ADDRESSES section of this preamble conditions contain the additional safety listed in the Type Certificate Data Sheet between 7:30 a.m. and 4 p.m., Monday standards that the Administrator (TCDS) No. A2SW. through Friday, except Federal holidays. If the Administrator finds that the considers necessary to establish a level We will consider all comments we applicable airworthiness regulations of safety equivalent to that provided by receive on or before the closing date for (i.e., part 25, as amended) do not the existing airworthiness standards. comments. We will consider comments contain adequate or appropriate safety DATES: The effective date of these filed late if it is possible to do so standards for the Israel Aircraft special conditions is May 16, 2002. without incurring expense or delay. We Industries Model 1124 airplane because Comments must be received on or may change these special conditions in of a novel or unusual design feature, before June 24, 2002. light of the comments we receive. special conditions are prescribed under ADDRESSES: Comments on these special If you want the FAA to acknowledge the provisions of § 21.16. conditions may be mailed in duplicate receipt of your comments on this In addition to the applicable to: Federal Aviation Administration, proposal, include with your comments airworthiness regulations and special Transport Airplane Directorate, Attn: a pre-addressed, stamped postcard on conditions, the Model 1124 airplane

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must comply with the part 25 fuel vent High-Intensity Radiated Fields (HIRF) studies on the subject of HIRF, in light and exhaust emission requirements of With the trend toward increased of the ongoing work of the 14 CFR part 34 and the part 25 noise power levels from ground-based Electromagnetic Effects Harmonization certification requirements of 14 CFR transmitters, plus the advent of space Working Group of the Aviation part 36. and satellite communications, coupled Rulemaking Advisory Committee. Special conditions, as defined in with electronic command and control of Applicability § 11.19, are issued in accordance with the airplane, the immunity of critical As discussed above, these special § 11.38 and become part of the type digital avionics systems to HIRF must be certification basis in accordance with conditions are applicable to the Israel established. Aircraft Industries Model 1124 airplane § 21.101(b)(2). It is not possible to precisely define Special conditions are initially modified by Duncan Aviation, Inc. to the HIRF to which the airplane will be include the air data display unit. Should applicable to the model for which they exposed in service. There is also are issued. Should Duncan Aviation, Duncan apply at a later date for a uncertainty concerning the effectiveness supplemental type certificate to modify Inc. apply for a supplemental type of airframe shielding for HIRF. any other model included on the same certificate to modify any other model Furthermore, coupling of type certificate to incorporate the same included on the same type certificate to electromagnetic energy to cockpit- novel or unusual design feature, these incorporate the same novel or unusual installed equipment through the cockpit special conditions would apply to that design feature, these special conditions window apertures is undefined. Based model as well under the provisions of would also apply to the other model on surveys and analysis of existing HIRF § 21.101(a)(1). under the provisions of § 21.101(a)(1). emitters, an adequate level of protection Conclusion Novel or Unusual Design Features exists when compliance with the HIRF protection special condition is shown This action affects only certain novel The Israel Aircraft Industries Model with either paragraph 1 OR paragraph 2, or unusual design features on Israel 1124 airplane will incorporate an air below: Aircraft Industries Model 1124 airplanes data display unit that displays critical 1. A minimum threat of 100 volts rms modified by Duncan Aviation, Inc. It is flight parameters to the flightcrew. per meter electric field strength from 10 not a rule of general applicability and These systems can be susceptible to KHz to 18 GHz. affects only the applicant who applied disruption to command and/or response a. The threat must be applied to the to the FAA for approval of these features signals as a result of electrical and system elements and their associated on the airplane. magnetic interference. This disruption wiring harnesses without the benefit of The substance of the special of signals could result in loss of all airframe shielding. conditions for this airplane has been critical flight displays and b. Demonstration of this level of subjected to the notice and comment announcement functions or present protection is established through system period in several prior instances and has misleading information to the pilot. The tests and analysis. been derived without substantive current airworthiness standards (14 CFR 2. A threat external to the airframe of change from those previously issued. It part 25) do not contain adequate or the field strengths indicated in the table is unlikely that prior public comment appropriate safety standards that below for the frequency ranges would result in a significant change address protecting this equipment from indicated. Both peak and average field from the substance contained herein. the adverse effects of HIRF. strength components from the table For this reason, and because a delay Accordingly, these instruments are below are to be demonstrated. would significantly affect the considered to be a novel or unusual certification of the airplane, which is design feature. TABLE 1 imminent, the FAA has determined that prior public notice and comment are Discussion Field strength (volts unnecessary and impracticable, and There is no specific regulation that Frequency per meter) good cause exists for adopting these addresses protection requirements for Peak Average special conditions upon issuance. The electrical and electronic systems from FAA is requesting comments to allow HIRF. Increased power levels from 10 kHz–100 kHz ...... 50 50 interested persons to submit views that ground-based radio transmitters and the 100 kHz–500 kHz ..... 50 50 may not have been submitted in growing use of sensitive avionic/ 500 kHz–2 MHz ...... 50 50 response to the prior opportunities for electronic and electrical systems to 2 MHz–30 MHz ...... 100 100 comment described above. command and control airplanes have 30 MHz–70 MHz ...... 50 50 List of Subjects in 14 CFR Part 25 made it necessary to provide adequate 70 MHz–100 MHz ..... 50 50 protection. 100 MHz–200 MHz ... 100 100 Aircraft, Aviation safety, Reporting 200 MHz–400 MHz ... 100 100 and recordkeeping requirements. To ensure that a level of safety is 400MHz–700 MHz .... 700 50 achieved equivalent to that intended by 700 MHz–1 GHz ...... 700 100 The authority citation for these the regulations incorporated by 1 GHz–2 GHz ...... 2000 200 special conditions is as follows: reference, special conditions are needed 2 GHz–4 GHz ...... 3000 200 Authority: 49 U.S.C. 106(g), 40113, 44701, for the Israel Aircraft Industries Model 4 GHz–6 GHz ...... 3000 200 44702, 44704. 1124, as modified by Duncan Aviation, 6 GHz–8 GHz ...... 1000 200 Inc. These special conditions require 8 GHz–12 GHz ...... 3000 300 The Special Conditions that new avionic/electronic and 12 GHz–18 GHz ...... 2000 200 Accordingly, pursuant to the 18 GHz–40 GHz ...... 600 200 electrical systems such as the air data authority delegated to me by the display unit, which perform critical The field strengths are expressed in terms Administrator, the following special functions, be designed and installed to of peak of the root-mean-square (rms) over conditions are issued as part of the type preclude component damage and the complete modulation period. certification basis for Israel Aircraft interruption of function due to both the The threat levels identified above are Industries Model 1124 airplanes direct and indirect effects of HIRF. the result of an FAA review of existing modified by Duncan Aviation, Inc.

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1. Protection from Unwanted Effects emergency exits of a similar type design understandable, this could result in the of High-Intensity Radiated Fields airplane. The actions specified by this inability to open the exit doors during (HIRF). Each electrical and electronic AD are intended to assure that clear and an emergency situation. system that performs critical functions complete operating instructions are Has FAA Taken Any Action to This must be designed and installed to visible for opening the emergency exit Point? ensure that the operation and doors. If not visible and understandable, operational capability of these systems this could result in the inability to open We issued a proposal to amend part to perform critical functions are not the exit door during an emergency 39 of the Federal Aviation Regulations adversely affected when the airplane is situation. (14 CFR part 39) to include an AD that exposed to high intensity radiated DATES: This AD becomes effective on would apply to certain Raytheon Model fields. July 8, 2002. 58P, 60, A60, B60, and 65–88 airplanes. 2. For the purpose of these special The Director of the Federal Register This proposal was published in the conditions, the following definition approved the incorporation by reference Federal Register as a notice of proposed applies: of certain publications listed in the rulemaking (NPRM) on January 14, 2002 Critical Functions: Functions whose regulations as of July 8, 2002. (67 FR 1670). The NPRM proposed to failure would contribute to or cause a require you to install new exterior ADDRESSES: failure condition that would prevent the You may get the service operating instruction placards for the continued safe flight and landing of the information referenced in this AD from exit doors. airplane. Raytheon Aircraft Company, P.O. Box 85, Wichita, Kansas 67201–0085; Was the Public Invited to Comment? Issued in Renton, Washington, on May 16, telephone: (800) 429–5372 or (316) 676– 2002. The FAA encouraged interested 3140. You may view this information at persons to participate in the making of Linda Navarro, the Federal Aviation Administration Acting Manager, Transport Airplane this amendment. We did not receive any (FAA), Central Region, Office of the comments on the proposed rule or on Directorate, Aircraft Certification Service. Regional Counsel, Attention: Rules [FR Doc. 02–13132 Filed 5–23–02; 8:45 am] our determination of the cost to the Docket No. 2001-CE–32–AD, 901 public. BILLING CODE 4910–13–P Locust, Room 506, Kansas City, Missouri 64106; or at the Office of the FAA’s Determination Federal Register, 800 North Capitol What Is FAA’s Final Determination on DEPARTMENT OF TRANSPORTATION Street, NW., suite 700, Washington, DC. This Issue? Federal Aviation Administration FOR FURTHER INFORMATION CONTACT: Steven E. Potter, Aerospace Engineer, After careful review of all available 14 CFR Part 39 FAA, Wichita Aircraft Certification information related to the subject Office, 1801 Airport Road, Mid- presented above, we have determined [Docket No. 2001–CE–32–AD; Amendment Continent Airport, Wichita, Kansas that air safety and the public interest 39–12759; AD 2002–10–13] 67209; telephone: (316) 946–4124; require the adoption of the rule as proposed except for minor editorial RIN 2120–AA64 facsimile: (316) 946–4407. corrections. We have determined that SUPPLEMENTARY INFORMATION: Airworthiness Directives; Raytheon these minor corrections: Aircraft Company Model 58P, 60, A60, Discussion • Provide the intent that was B60, and 65–88 Airplanes What Events Have Caused This AD? proposed in the NPRM for correcting the unsafe condition; and AGENCY: Federal Aviation The FAA believes that the • Do not add any additional burden Administration, DOT. instructions for opening the exit doors upon the public than was already ACTION: Final rule. are either not visible or not easy to proposed in the NPRM. understand on Raytheon Model 58P, 60, SUMMARY: This amendment adopts a A60, B60, and 65–88 airplanes. This is Cost Impact new airworthiness directive (AD) that based on an accident involving a similar How Many Airplanes Does This AD applies to certain Raytheon Aircraft type design airplane that resulted in the Impact? Company (Raytheon) Model 58P, 60, issuance of AD 97–04–02. AD 97–04–02 A60, B60, and 65–88 airplanes. This AD was later superseded by AD 98–21–20 to We estimate that this AD affects 850 requires you to install new exterior incorporate more visible and airplanes in the U.S. registry. operating instruction placards for the understandable instructions. What Is the Cost Impact of This AD on exit doors. This AD is the result of Owners/Operators of the Affected Raytheon improving the visibility and What Is the Potential Impact if FAA Airplanes? understandability of the door operating Took No Action? instruction placards. This was done as If the exterior door operating We estimate the following costs to a result of difficulty opening the instruction placards are not visible and accomplish the modification:

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

2 workhours × $60 per hour = $120...... $40 ...... $120 + $40 = $160 ..... $160 × 850 = $136,000.

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The manufacturer will provide the States, on the relationship between PART 39—AIRWORTHINESS warranty credit for parts to the extent the national government and the States, DIRECTIVES noted under Material Information in or on the distribution of power and Raytheon Mandatory Service Bulletin responsibilities among the various 1. The authority citation for part 39 SB 11–3404, Issued: June, 2001. levels of government. Therefore, it is continues to read as follows: determined that this final rule does not Authority: 49 U.S.C. 106(g), 40113, 44701. Compliance Time of This AD have federalism implications under What Will Be the Compliance Time of Executive Order 13132. § 39.13 [Amended] This AD? 2. FAA amends § 39.13 by adding a Does This AD Involve a Significant Rule new AD to read as follows: The compliance time of this AD is or Regulatory Action? ‘‘within the next 100 hours time-in- 2002–10–13 Raytheon Aircraft Company: service (TIS) after the effective date of For the reasons discussed above, I Amendment 39–12759; Docket No. this AD or within the next 12 calendar certify that this action (1) is not a 2001–CE–32–AD. months after the effective date of this ‘‘significant regulatory action’’ under (a) What airplanes are affected by this AD? AD, whichever occurs first, unless Executive Order 12866; (2) is not a This AD affects the following airplane already accomplished.’’ ‘‘significant rule’’ under DOT models and serial numbers that are Regulatory Policies and Procedures (44 certificated in any category: Why Is the Compliance Time of This AD FR 11034, February 26, 1979); and (3) Presented in Both Hours TIS and will not have a significant economic Model Serial numbers Calendar Time? impact, positive or negative, on a 58P ...... TJ–3 through TJ–497. The unsafe condition on these substantial number of small entities 60 ...... P–4 through P–122 and P– airplanes is not a result of the number under the criteria of the Regulatory 124 through P–126. of times the airplane is operated. Flexibility Act. A copy of the final A60 ...... P–123 and P–127 through P– Airplane operation varies among evaluation prepared for this action is 246. operators. For example, one operator contained in the Rules Docket. A copy B60 ...... P–247 through P–596. may operate the airplane 50 hours TIS of it may be obtained by contacting the 65–88 ...... LP–1 through LP–26, LP–28, in 3 months while it may take another Rules Docket at the location provided and LP–30 through LP–47. operator 12 months or more to under the caption ADDRESSES. accumulate 50 hours TIS. For this (b) Who must comply with this AD? List of Subjects in 14 CFR Part 39 Anyone who wishes to operate any of the reason, the FAA has determined that the airplanes identified in paragraph (a) of this compliance time of this AD should be Air transportation, Aircraft, Aviation AD must comply with this AD. specified in both hours TIS and safety, Incorporation by reference, (c) What problem does this AD address? calendar time in order to assure this Safety. The actions specified by this AD are intended condition is not allowed to go to assure that clear and complete operating Adoption of the Amendment uncorrected over time. instructions are visible for opening the exit doors. If not visible and understandable, this Regulatory Impact Accordingly, under the authority could result in the inability to open the exit delegated to me by the Administrator, Does This AD Impact Various Entities? door during an emergency situation. the Federal Aviation Administration (d) What actions must I accomplish to The regulations adopted herein will amends part 39 of the Federal Aviation address this problem? To address this not have a substantial direct effect on Regulations (14 CFR part 39) as follows: problem, you must accomplish the following:

Actions Compliance Procedures

Modify the exterior door operating procedures Within the next 100 hours time-in-service In accordance with the Accomplishment In- by installing the applicable placard as speci- (TIS) after July 8, 2002 (the effective date structions section of Raytheon Aircraft Man- fied in the service bulletin. of this AD) or within the next 12 calendar datory Service Bulletin SB 11–3404, Issued: months after July 8, 2002 (the effective June, 2001. date of this AD), whichever occurs first, un- less already accomplished.

(e) Can I comply with this AD in any other request approval for an alternative method of sections 21.197 and 21.199 of the Federal way? You may use an alternative method of compliance in accordance with paragraph (e) Aviation Regulations (14 CFR 21.197 and compliance or adjust the compliance time if: of this AD. The request should include an 21.199) to operate your airplane to a location (1) Your alternative method of compliance assessment of the effect of the modification, where you can accomplish the requirements provides an equivalent level of safety; and alteration, or repair on the unsafe condition of this AD. (2) The Manager, Wichita Aircraft addressed by this AD; and, if you have not (h) Are any service bulletins incorporated Certification Office (ACO), approves your eliminated the unsafe condition, specific into this AD by reference? Actions required alternative. Submit your request through an actions you propose to address it. by this AD must be done in accordance with FAA Principal Maintenance Inspector, who (f) Where can I get information about any Raytheon Aircraft Mandatory Service may add comments and then send it to the already-approved alternative methods of Bulletin SB 11–3404, Issued: June, 2001. The Manager, Wichita ACO. compliance? Contact Steven E. Potter, Director of the Federal Register approved this Note: This AD applies to each airplane Aerospace Engineer, Wichita Aircraft incorporation by reference under 5 U.S.C. identified in paragraph (a) of this AD, Certification Office, FAA, 1801 Airport Road, 552(a) and 1 CFR part 51. You may get copies regardless of whether it has been modified, Mid-Continent Airport, Wichita, Kansas from Raytheon Aircraft Company, P.O. Box altered, or repaired in the area subject to the 67209; telephone: (316) 946–4124; facsimile: 85, Wichita, Kansas 67201–0085. You may requirements of this AD. For airplanes that (316) 946–4407. view copies at the FAA, Central Region, have been modified, altered, or repaired so (g) What if I need to fly the airplane to Office of the Regional Counsel, 901 Locust, that the performance of the requirements of another location to comply with this AD? The Room 506, Kansas City, Missouri, or at the this AD is affected, the owner/operator must FAA can issue a special flight permit under Office of the Federal Register, 800 North

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Capitol Street, NW, suite 700, Washington, 1. FAA Public Inquiry Center (APA– previously issued by the FAA in a DC. 200), FAA Headquarters Building, 800 National Flight Data Center (NFDC) (i) When does this amendment become Independence Avenue, SW., Notice to Airmen (NOTAM) as an effective? This amendment becomes effective Washington, DC 20591; or emergency action of immediate flight on July 8, 2002. 2. The FAA Regional Office of the safety relating directly to published Issued in Kansas City, Missouri, on May region in which the affected airport is aeronautical charts. The circumstances 16, 2002. located. which created the need for some SIAP Terry L. Chasteen, By Subscription—Copies of all SIAPs, amendments may require making them Acting Manager, Small Airplane Directorate, mailed once every 2 weeks, are for sale effective in less than 30 days. For the Aircraft Certification Service. by the Superintendent of Documents, remaining SIAPs, an effective date at [FR Doc. 02–12885 Filed 5–23–02; 8:45 am] U.S. Government Printing Office, least 30 days after publication is BILLING CODE 4910–13–P Washington, DC 20402. provided. FOR FURTHER INFORMATION CONTACT: Further, the SIAPs contained in this Donald P. Pate, Flight Procedure amendment are based on the criteria DEPARTMENT OF TRANSPORTATION Standards Branch (AMCAFS–420), contained in the U.S. Standard for Federal Aviation Administration Flight Technologies and Programs Terminal Instrument Procedures Division, Flight Standards Service, (TERPS). In developing these SIAPs, the 14 CFR Part 97 Federal Aviation Administration, Mike TERPS criteria were applied to the Monroney Aeronautical Center, 6500 conditions existing or anticipated at the [Docket No. 30309; Amdt. No. 3005] South MacArthur Blvd., Oklahoma City, affected airports. Because of the close OK 73169 (Mail Address: P.O. Box, and immediate relationship between Standard Instrument Approach 25082 Oklahoma City, OK 73125) these SIAPs and safety in air commerce, Procedures; Miscellaneous telephone: (405) 954–4164. I find that notice and public procedure Amendments SUPPLEMENTARY INFORMATION: This before adopting these SIAPs are impracticable and contrary to the public AGENCY: Federal Aviation amendment to part 97 of the Federal Administration (FAA), DOT. Aviation Regulations (14 CFR part 97) interest and, where applicable, that establishes, amends, suspends, or good cause exists for making some ACTION: Final rule. revokes Standard Instrument Approach SIAPs effective no less than 30 days. SUMMARY: This amendment establishes, Procedures (SIAPs). The complete Conclusion amends, suspends, or revokes Standard regulatory description of each SIAP is Instrument Approach Procedures contained in official FAA form The FAA has determined that this (SIAPs) for operations at certain documents which are incorporated by regulation only involves an established airports. These regulatory actions are reference in this amendment under 5 body of technical regulations for which needed because of the adoption of new U.S.C. 552(a), 1 CFR part 51, and § 97.20 frequent and routine amendments are or revised criteria, or because of changes of the Federal Aviation Regulations necessary to keep them operationally occurring in the National Airspace (FAR). The applicable FAA Forms are current. It, therefore—(1) is not a System, such as the commissioning of identified as FAA Forms 8260–3, and ‘‘significant regulatory action’’ under new navigational facilities, addition of 8260–4, and 8260–5. Materials Executive Order 12866; (2) is not a new obstacles, or changes in air traffic incorporated by reference are available ‘‘significant rule’’ under DOT requirements. These changes are for examination or purchase as stated Regulatory Policies and Procedures (44 designed to provide safe and efficient above. FR 11034; February 26, 1979); and (3) use of the navigable airspace and to The large number of SIAPs, their does not warrant preparation of a promote safe flight operations under complex nature, and the need for a regulatory evaluation as the anticipated instrument flight rules at the affected special format make their verbatim impact is so minimal. For the same airports. publication in the Federal Register reason, the FAA certifies that this expensive and impractical. Further, amendment will not have a significant DATES: An effective date for each SIAP airmen do not use the regulatory text of economic impact on a substantial is specified in the amendatory the SIAPs, but refer to their graphic number of small entities under the provisions. depiction on charts printed by criteria of the Regulatory Flexibility Act. Incorporation by reference-approved publishers of aeronautical materials. List of Subjects in 14 CFR Part 97 by the Director of the Federal Register Thus, the advantages of incorporation on December 31, 1980, and reapproved by reference are realized and Air traffic control, Airports, as of January 1, 1982. publication of the complete description Navigation (air). ADDRESSES: Availability of matters of each SIAP contained in FAA form incorporated by reference in the Issued in Washington, DC on May 10, documents is unnecessary. The 2002. amendment is as follows: provisions of this amendment state the James J. Ballough, For Examination— affected CFR (and FAR) sections, with 1. FAA Rules Docket, FAA the types and effective dates of the Director, Flight Standards Service. Headquarters Building, 800 SIAPs. This amendment also identifies Adoption of the Amendment Independence Avenue, SW., the airport, its location, the procedure Washington, DC 20591; identification and the amendment Accordingly, pursuant to the 2. The FAA Regional Office of the number. authority delegated to me, part 97 of the region in which the affected airport is Federal Aviation Regulations (14 CFR located; or The Rule part 97) is amended by establishing, 3. The Flight Inspection Area Office This amendment to part 97 is effective amending, suspending, or revoking which originated the SIAP. upon publication of each separate SIAP Standard Instrument Approach For Purchase—Individual SIAP as contained in the transmittal. Some Procedures, effective at 0901 UTC on copies may be obtained from: SIAP amendments may have been the dates specified, as follows:

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PART 97—STANDARD INSTRUMENT Indianapolis, IN, Indianapolis Intl, RNAV DEPARTMENT OF HEALTH AND APPROACH PROCEDURES (GPS) RWY 5R, Orig HUMAN SERVICES Indianapolis, IN, Indianapolis Intl, RNAV 1. The authority citation for part 97 is (GPS) RWY 14, Orig Food and Drug Administration revised to read as follows: Indianapolis, IN, Indianapolis Intl, RNAV Authority: 49 U.S.C. 106(g), 40103, 40113, (GPS) RWY 23L, Orig 21 CFR Part 558 40120, 44701; and 14 CFR 11.49(b)(2). Indianapolis, IN, Indianapolis Intl, RNAV (GPS) RWY 23R, Orig New Animal Drugs for Use in Animal §§ 97.23, 97.25, 97.27, 97.29, 97.31, 97.33, Indianapolis, IN, Indianapolis Intl, RNAV Feeds; Lincomycin and 97.35 [Amended] (GPS) RWY 32, Orig AGENCY: Food and Drug Administration, 2. Part 97 is amended to read as Norton, KS, Norton Muni, NDB OR GPS RWY HHS. 35, Amdt 2A, CANCELLED follows: ACTION: Norton, KS, Norton Muni, NDB OR GPS RWY Final rule. By amending: § 97.23 VOR, VOR/ 17, Amdt 2A, CANCELLED SUMMARY: The Food and Drug DME, VOR or TACAN, and VOR/DME Omaha, NE, Eppley Airfield, ILS RWY 36, Administration (FDA) is amending the or TACAN; § 97.25 LOC, LOC/DME, Orig animal drug regulations to reflect LDA, LDA/DME, SDF, SDF/DME; Andrews, NC, Andrews-Murphy, RNAV approval of a supplemental new animal § 97.27 NDB, NDB/DME; § 97.29 ILS, (GPS) RWY 8, Orig drug application (NADA) filed by ILS/DME, ISMLS, MLS, MLS/DME, Raleigh-Durham, NC, Raleigh-Durham Intl, Pharmacia & Upjohn Co. The MLS/RNAV; § 97.31 RADAR SIAPs; VOR RWY 32, Amdt 3B supplemental NADA provides for the § 97.33 RNAV SIAPs; and § 97.35 Raleigh-Durham, NC, Raleigh-Durham Intl, use of lincomycin in swine feed for the COPTER SIAPs, identified as follows: NDB RWY 5R, Amdt 20B control of porcine proliferative Ponca City, OK, Ponca City Muni, LOC RWY * * * Effective June 13, 2002 enteropathies (ileitis). 17, Orig Huntsville, AL, Madison County Executive, DATES: This rule is effective May 24, VOR/DME–B, Amdt 6 * * * Effective August 8, 2002 2002. Huntsville, AL, Madison County Executive, Alabaster, AL Shelby County, NDB OR GPS FOR FURTHER INFORMATION CONTACT: GPS RWY 18, Orig, CANCELLED RWY 33, Orig, CANCELLED Steven D. Vaughn, Center for Veterinary Huntsville, AL, Madison County Executive, Jacksonville, FL, Craig Muni, VOR/DME OR RNAV (GPS) RWY 18, Orig Medicine (HFV–130), Food and Drug Oakland, CA, Metropolitan Oakland Intl, GPS RWY 32, Amdt 1 Administration, 7500 Standish Pl., VOR RWY 9R, Amdt 7D Orlando, FL Orland Intl, GPS RWY 36L, Rockville, MD 20855, 301–827–7584, e- Oakland, CA, Metropolitan Oakland Intl, ILS Amdt 1B mail: [email protected]. RWY 11, Amdt 5 Sarasota (Bradenton), FL, Sarasota/Bradenton SUPPLEMENTARY INFORMATION: Pharmacia Oakland, CA, Metropolitan Oakland Intl, ILS Intl, RADAR–1, Amdt 6 & Upjohn Co., 7000 Portage Rd., RWY 27R, Amdt 34 Greenville, NC, Pitt-Greenville, VOR/DME Kalamazoo, MI 49001–0199, filed a Oakland, CA, Metropolitan Oakland Intl, ILS RNAV RWY 26, Amdt 3C, CANCELLED supplement to NADA 97–505 that RWY 29, Amdt 24 Dallas-Fort Worth, TX, Dallas-Fort Worth provides for use of LINCOMIX 20 Oakland, CA, Metropolitan Oakland Intl, Intl, VOR RWY 13, Amdt 1 RNAV (GPS) RWY 9L, Orig (lincomycin hydrochloride) and Oakland, CA, Metropolitan Oakland Intl, Note: The FAA published the following LINCOMIX 50 Feed Medications in RNAV (GPS) RWY 9R, Orig amendments in Docket No. 30304, Amdt. No. medicated swine feeds for the control of Oakland, CA, Metropolitan Oakland Intl, 3001 to Part 97 of the Federal Aviation porcine proliferative enteropathies RNAV (GPS) RWY 11, Orig Regulations (67 FR 19667–19669; dated April (ileitis) caused by Lawsonia Oakland, CA, Metropolitan Oakland Intl, GPS 23, 2002) under section 97.27 effective 13 intracellularis. The supplemental RWY 11, Orig-A, CANCELLED June 2002, which are hereby rescinded: application is approved as of February Oakland, CA, Metropolitan Oakland Intl, Grant, NE, Grant Muni, VOR/DME RWY 15, 28, 2002, and the regulations are RNAV (GPS) RWY 27L, Orig Orig Oakland, CA, Metropolitan Oakland Intl, GPS amended in 21 CFR 558.325 to reflect RWY 27L, Orig, CANCELLED Norfolk, VA, Norfolk Intl, NDB/DME RWY 23 the approval. Section 558.325 is also Oakland, CA, Metropolitan Oakland Intl, Orig being revised to reflect a current format. RNAV (GPS) RWY 27R, Orig Norfolk, VA, Norfolk Intl, NDB/DME OR GPS In accordance with the freedom of Oakland, CA, Metropolitan Oakland Intl, RWY 23, Orig B, CANCELLED information provisions of 21 CFR part RNAV (GPS) RWY 29, Orig The FAA published the following 20 and 514.11(e)(2)(ii), a summary of Oakland, CA, Metropolitan Oakland Intl, GPS amendment in Docket No. 30306; Amdt. No. safety and effectiveness data and RWY 29, Orig, CANCELLED 3003 to Part 97 of the Federal Aviation information submitted to support Indianapolis, IN, Indianapolis Intl, VOR approval of this supplemental RWY 14, Amdt 26 Regulations (67 FR 21990–21992; dated May Indianapolis, IN, Indianapolis Intl, NDB 2, 2002) under section 97.27 effective 13 June application may be seen in the Dockets RWY 5R, Amdt 2 2002, which is hereby amended as follows: Management Branch (HFA–305), Food Indianapolis, IN, Indianapolis Intl, NDB Monroe City, MO, Monroe City Regional, and Drug Administration, 5630 Fishers RWY 23L, Amdt 2 VOR/DME RNAV RWY 27, Amdt 1 Lane, rm. 1061, Rockville, MD 20852, Indianapolis, IN, Indianapolis Intl, NDB between 9 a.m. and 4 p.m., Monday The FAA published an Amendment in RWY 32, Amdt 15 through Friday. Docket No. 30306, Amdt No. 3003 to Part 97 Indianapolis, IN, Indianapolis Intl, ILS RWY Under section 512(c)(2)(F)(iii) of the of the Federal Aviation Regulations (67 FR 5L, Amdt 2 Federal Food, Drug, and Cosmetic Act Indianapolis, IN, Indianapolis Intl, ILS RWY 21990–21992; dated May 2, 2002) under section 97.33 effective 13 June 2002, which (21 U.S.C. 360b(c)(2)(F)(iii)), this 5R, Amdt 3 approval qualifies for 3 years of Indianapolis, IN, Indianapolis Intl, ILS RWY is hereby rescinded: 23L, Amdt 3 Richfield, UT, Richfield Muni, RNAV (GPS) marketing exclusivity beginning Indianapolis, IN, Indianapolis Intl, ILS RWY RWY 19, Orig February 28, 2002, because the 23R, Amdt 2 application contains substantial Indianapolis, IN, Indianapolis Intl, RNAV [FR Doc. 02–12286 Filed 5–23–02; 8:45 am] evidence of the effectiveness of the drug (GPS) RWY 5L, Orig BILLING CODE 4910–13–M involved, any studies of animal safety

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or, in the case of food-producing List of Subjects in 21 CFR Part 558 and (a)(13); in paragraph (b) by animals, human food safety studies removing ‘‘in edible products’’; and by Animal drugs, Animal feeds. (other than bioequivalence or residue revising paragraph (d) to read as studies) required for approval of the Therefore, under the Federal Food, follows: application and conducted or sponsored Drug, and Cosmetic Act and under by the applicant. authority delegated to the Commissioner § 558.325 Lincomycin. The agency has determined under 21 of Food and Drugs and redelegated to (a) * * * CFR 25.33(a)(1) that this action is of a the Center for Veterinary Medicine, 21 (1) No. 000009 for 20 and 50 grams type that does not individually or CFR part 558 is amended as follows: per pound. cumulatively have a significant effect on the human environment. Therefore, PART 558—NEW ANIMAL DRUGS FOR * * * * * neither an environmental assessment USE IN ANIMAL FEEDS (5) No. 043733 for 8 and 20 grams per nor an environmental impact statement pound. 1. The authority citation for 21 CFR is required. * * * * * This rule does not meet the definition part 558 continues to read as follows: (13) No. 017800 for 2.5 and 8 grams of ‘‘rule’’ in 5 U.S.C. 804(3)(A) because Authority: 21 U.S.C. 360b, 371. per pound. it is a rule of ‘‘particular applicability.’’ 2. Section 558.325 is amended in Therefore, it is not subject to the paragraph (a) by removing ‘‘paragraph * * * * * congressional review requirements in 5 (c)’’ and in its place adding ‘‘paragraph (d) Conditions of use—(1) Chickens. It U.S.C. 801–808. (d)’’; by revising paragraphs (a)(1), (a)(5), is used in feed as follows:

Lincomycin grams/ton Indications for use Limitations Sponsor

(i) 2 Broilers: For control of necrotic enteritis As lincomycin hydrochloride monohydrate. 000009 caused by Clostridium spp. or other susceptible organisms.

(ii) 2 to 4 Broilers: For increased rate of weight As lincomycin hydrochloride monohydrate. 000009 gain and improved feed efficiency.

(2) Swine. It is used in feed as follows:

Lincomycin grams/ton Indications for use Limitations Sponsor

(i) 20 Growing-finishing swine: For increased Feed as sole ration. Not to be fed to swine that 000009 rate of weight gain. weigh more than 250 pounds (lb).

(ii) 40 1. For control of swine dysentery. Feed as sole ration; for use in swine on premises 000009 with a history of swine dysentery but where 017800 symptoms have not yet occurred, or following use 043733 of lincomycin at 100 grams (g)/ton for treatment of swine dysentery. Not to be fed to swine that weigh more than 250 lb. 2. For control of porcine proliferative Feed as sole ration, or following use of lincomycin 000009 enteropathies (ileitis) caused by at 100 g/ton for control of porcine proliferative Lawsonia intracellularis. enteropathies (ileitis). Not to be fed to swine that weigh more than 250 lb.

(iii) 100 1. For treatment of swine dysentery. Feed as sole ration for 3 weeks or until signs of dis- 000009 ease disappear. Not to be fed to swine that weigh 017800 more than 250 lb. 043733 2. For control of porcine proliferative Feed as sole ration for 3 weeks or until signs of dis- 000009 enteropathies (ileitis) caused by ease disappear. Not to be fed to swine that weigh Lawsonia intracellularis. more than 250 lb.

(iv) 200 For reduction in the severity of swine Feed as sole ration for 3 weeks. Not to be fed to 000009 mycoplasmal pneumonia caused by swine that weigh more than 250 lb. 017800 Mycoplasma hyopneumoniae.

(3) Lincomycin may also be used in (v) Halofuginone in accordance with (xi) Robenidine in accordance with combination with: § 558.265. § 558.515. (i) Amprolium and ethopabate or (vi) Ivermectin as in § 558.300. (xii) Roxarsone in accordance with amprolium and ethopabate with (vii) Lasalocid alone or with § 558.530. roxarsone in accordance with § 558.58. roxarsone in accordance with § 558.311. (ii) Clopidol in accordance with (xiii) Salinomycin with or without § 558.175. (viii) Monensin alone or with roxarsone as in § 558.550. (iii) Decoquinate in accordance with roxarsone in accordance with § 558.355. (ix) Nicarbazin alone or with narasin (xiv) Zoalene in accordance with § 558.195. § 558.680. (iv) Fenbendazole as provided in or roxarsone as in § 558.366. § 558.258. (x) Pyrantel as in § 558.485.

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Dated: May 14, 2002. and non-Indian lands within its borders On February 21 and March 26, 2002, Acting Director, by demonstrating that its program Oklahoma sent us revisions to its Office of New Animal Drug Evaluation,Center includes, among other things, ‘‘*** a amendment (Administrative Record for Veterinary Medicine. State law which provides for the Nos. OK–988.10 and OK–988.14). Based [FR Doc. 02–13164 Filed 5–23–02; 8:45 am] regulation of surface coal mining and upon Oklahoma’s revisions, we BILLING CODE 4160–01–S reclamation operations in accordance reopened the public comment period in with the requirements of this Act * * * the April 5, 2002, Federal Register (67 ; and rules and regulations consistent FR 16341). The public comment period DEPARTMENT OF THE INTERIOR with regulations issued by the Secretary ended on April 22, 2002. We did not pursuant to this Act.’’ See 30 U.S.C. receive any comments. 1253(a)(1) and (7). On the basis of these Office of Surface Mining Reclamation III. OSM’s Findings and Enforcement criteria, the Secretary of the Interior conditionally approved the Oklahoma Following are the findings we made 30 CFR Part 936 program on January 19, 1981. You can concerning the amendment under find background information on the [OK–029–FOR] SMCRA and the Federal regulations at Oklahoma program, including the 30 CFR 732.15 and 732.17. We are Secretary’s findings, the disposition of Oklahoma Regulatory Program approving the amendment as described comments, and the conditions of below. Any revisions that we do not AGENCY: Office of Surface Mining approval of the Oklahoma program in specifically discuss below concern Reclamation and Enforcement, Interior. the January 19, 1981, Federal Register nonsubstantive wording or editorial ACTION: Final rule, approval of (46 FR 4902). You can also find later changes. amendment. actions concerning Oklahoma’s program and program amendments at 30 CFR A. Minor Revisions to Oklahoma’s Rules 936.15 and 936.16. SUMMARY: We, the Office of Surface Oklahoma proposed minor wording, Mining Reclamation and Enforcement II. Submission of the Amendment editorial, punctuation, grammatical, and (OSM), are approving an amendment to By letter dated November 20, 2001 recodification changes to the following the Oklahoma regulatory program previously-approved rules: (Oklahoma program) under the Surface (Administrative Record No. OK–988.02), Mining Control and Reclamation Act of Oklahoma sent us an amendment to its OAC 460:20–7–5(b)(2), rights 1977 (SMCRA or the Act). The approved regulatory program under determination and OAC 460:20–7–5(g), Oklahoma Department of Mines SMCRA (30 U.S.C. 1201 et seq.). applicability to lands designated as (Department or Oklahoma) proposed Oklahoma sent the amendment in unsuitable by Congress. revisions to its rules about areas response to an August 23, 2000, letter Because these changes are minor, we designated by act of congress as (Administrative Record No. OK–988) find that they will not make Oklahoma’s unsuitable for mining and coal that we sent to Oklahoma in accordance rules less effective than the Federal exploration operations. Oklahoma with 30 CFR 732.17(c). regulations. We announced receipt of the intends to revise its program to be amendment in the December 21, 2001, B. OAC 460:20–7–3 Definitions consistent with the corresponding Federal Register (66 FR 65858). In the Federal regulations. Oklahoma deleted its definition of same document, we opened the public ‘‘surface coal mining operations which EFFECTIVE DATE: May 24, 2002. comment period and provided an exist on the date of enactment’’ because FOR FURTHER INFORMATION CONTACT: opportunity for a public hearing or this term no longer appears in its rules. Michael C. Wolfrom, Director, Tulsa meeting on the adequacy of the Field Office. Telephone: (918) 581– amendment. We did not hold a public We are approving Oklahoma’s 6430. Internet: [email protected]. hearing or meeting because no one deletion because it is consistent with SUPPLEMENTARY INFORMATION: requested one. The public comment OSM’s deletion of the Federal period ended on January 22, 2002. We counterpart definition of ‘‘surface coal I. Background on the Oklahoma Program received comments from one Federal mining operations which exist on the II. Submission of the Amendment date of enactment.’’ See 64 FR 70766, III. OSM’s Findings agency and one State agency. IV. Summary and Disposition of Comments During our review of the amendment, dated December 17, 1999. V. OSM’s Decision we identified concerns relating to C. Revisions To Oklahoma’s Rules That VI. Procedural Determinations definitions at OAC 460:20–7–3, Have the Same Meaning as the procedures at OAC 460:20–7–5, and I. Background on the Oklahoma Corresponding Provisions of the Federal various editorial errors. We notified Regulations Program Oklahoma of the concerns by letters Section 503(a) of the Act permits a dated December 13, 2001, January 16, The State rules listed in the table State to assume primacy for the 2002, and March 6, 2002 below contain language that is the same regulation of surface coal mining and (Administrative Record Nos. OK– as or similar to the corresponding reclamation operations on non-Federal 988.06, OK–988.08, and OK–988.12). sections of the Federal regulations.

Topic State rule Federal counterpart regulation

Authority ...... OAC 460:20–7–2 ...... 30 CFR 761.3. Definition of Community or Institutional Building ...... OAC 460:20–7–3 ...... 30 CFR 761.5. Definition of Valid Existing Rights ...... OAC 460:20–7–3 ...... 30 CFR 761.5. Areas Where Surface Coal Mining Operations are Prohibited or Limited .. OAC 460:20–7–4 Introductory 30 CFR 761.11 Introductory paragraph, (2), (3), and (4)(B). paragraph, (b), (c), (d)(2). Exception for Existing Operations ...... OAC 460:20–7–4.1 ...... 30 CFR 761.12(a). Procedures—Obligations at Time of Permit Application Review ...... OAC 460:20–7–5(a), (b)(1), (f)(1) 30 CFR 761.17(a), (b), (d)(1) and and (3). (3).

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Topic State rule Federal counterpart regulation

Procedures—Compatibility Findings for Surface Coal Mining Operations OAC 460:20–7–5(c) ...... 30 CFR 761.13. on Federal Lands in National Forests. Procedures—Relocating or Closing a Public Road or Waiving the Prohibi- OAC 460:20–7–5(d) ...... 30 CFR 761.14. tion on Surface Coal Mining Operations Within the Buffer Zone of a Public Road. Procedures—Waiving the Prohibition on Surface Coal Mining Operations OAC 460:20–7–5(e) ...... 30 CFR 761.15. Within the Buffer Zone of an Occupied Dwelling. Procedures—Submission and Processing of Requests for Valid Existing OAC 460:20–7–5(h) ...... 30 CFR 761.16. Rights Determinations. Permit Requirements for Exploration Removing More Than 250 Tons of OAC 460:20–13–5(b)(14), 30 CFR 772.12(b)(14), (d)(2)(iv). Coal. (d)(2)(D).

Because Oklahoma’s proposed rules properties. On December 5, 2001, and purposes. Making this final rule contain language that is the same as or February 26, 2002, we requested effective immediately will expedite that similar to the corresponding Federal comments on Oklahoma’s amendment process. SMCRA requires consistency of regulations, we find that they are no less (Administrative Record Nos. OK–988.03 State and Federal standards. effective than the Federal regulations. and OK–988.11). The SHPO responded on January 3, 2002 (Administrative VI. Procedural Determinations IV. Summary and Disposition of Record No. OK–988.05). The SHPO was Comments Executive Order 12630—Takings concerned that several of Oklahoma’s Public Comments proposed rules did not consider In this rule, the State is adopting valid We asked for public comments on the properties that are ‘‘eligible for existing rights standards that are similar amendment, but did not receive any. inclusion on the National Register of to the standards in the Federal Historic Places.’’ definition at 30 CFR 761.5. Therefore, Federal Agency Comments On January 29, 2002 (Administrative this rule has the same takings On December 5, 2001, and February Record No. 988.09), we sent a letter implications as the Federal valid 26, 2002, under 30 CFR 732.17(h)(11)(i) telling the SHPO that Oklahoma’s existing rights rule. The takings and section 503(b) of SMCRA, we proposed rules are consistent with implications assessment for the Federal requested comments on the amendment Section 522(e)(3) of SMCRA and the valid existing rights rule appears in Part from various Federal agencies with an Federal regulations. We also explained XXIX.E of the preamble to that rule. See actual or potential interest in the that even though SMCRA and the 64 FR 70766, 70822–27, December 17, Oklahoma program (Administrative Federal regulations do not require 1999. consideration of properties eligible for Record Nos. OK–988.03 and OK– Executive Order 12866—Regulatory 988.11). We did not receive any listing on the National Register of Planning and Review comments. Historic Places when making a determination of whether a person has This rule is exempted from review by Environmental Protection Agency (EPA) valid existing rights to mine in areas Concurrence and Comments the Office of Management and Budget where surface coal mining operations under Executive Order 12866. Under 30 CFR 732.17(h)(11)(ii), we are normally prohibited or limited, the are required to obtain the written permit application requirements and Executive Order 12988—Civil Justice concurrence of EPA for those provisions other provisions of the Oklahoma rules Reform of the program amendment that relate to and the Federal regulations do require air or water quality standards issued this consideration for these areas. The Department of the Interior has conducted the reviews required by under the authority of the Clean Water V. Director’s Decision Act (33 U.S.C. 1251 et seq.) or the Clean section 3 of Executive Order 12988 and Air Act (42 U.S.C. 7401 et seq.). None Based on the above findings, we has determined that this rule meets the of the revisions that Oklahoma proposed approve the amendment Oklahoma sent applicable standards of subsections (a) to make in this amendment pertain to to us on November 20, 2001, and as and (b) of that section. However, these air or water quality standards. revised on February 21 and March 26, standards are not applicable to the Therefore, we did not ask EPA to concur 2002. actual language of State regulatory on the amendment. We approve the rules proposed by programs and program amendments Under 30 CFR 732.17(h)(11)(i), we Oklahoma with the provision that they because each program is drafted and requested comments on the amendment be fully promulgated in identical form promulgated by a specific State, not by from EPA (Administrative Record Nos. to the rules submitted to and reviewed OSM. Under sections 503 and 505 of OK–988.03 and OK–988.11). EPA by OSM and the public. SMCRA (30 U.S.C. 1253 and 1255) and responded on January 2, 2002 To implement this decision, we are the Federal regulations at 30 CFR (Administrative Record No. OK–988.04), amending the Federal regulations at 30 730.11, 732.15, and 732.17(h)(10), that it had no comments. CFR part 936, which codify decisions decisions on proposed State regulatory concerning the Oklahoma program. We programs and program amendments State Historic Preservation Officer find that good cause exists under 5 submitted by the States must be based (SHPO) and the Advisory Council on U.S.C. 553(d)(3) to make this final rule solely on a determination of whether the Historic Preservation (ACHP) effective immediately. Section 503(a) of submittal is consistent with SMCRA and Under 30 CFR 732.17(h)(4), we are SMCRA requires that the State’s its implementing Federal regulations required to request comments from the program demonstrate that the State has and whether the other requirements of SHPO and ACHP on amendments that the capability of carrying out the 30 CFR parts 730, 731, and 732 have may have an effect on historic provisions of the Act and meeting its been met.

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Executive Order 13132—Federalism meaning of section 102(2)(C) of the determination is based upon the fact This rule does not have Federalism National Environmental Policy Act (42 that the State submittal, which is the implications. SMCRA delineates the U.S.C. 4332(2)(C). subject of this rule, is based upon counterpart Federal regulations for roles of the Federal and State Paperwork Reduction Act governments with regard to the which an analysis was prepared and a regulation of surface coal mining and This rule does not contain determination made that the Federal reclamation operations. One of the information collection requirements that regulation was not considered a major purposes of SMCRA is to ‘‘establish a require approval by OMB under the rule. Paperwork Reduction Act (44 U.S.C. nationwide program to protect society Unfunded Mandates and the environment from the adverse 3507 et seq.). This rule will not impose an effects of surface coal mining Regulatory Flexibility Act operations.’’ Section 503(a)(1) of unfunded mandate on State, local, or SMCRA requires that State laws The Department of the Interior tribal governments or the private sector regulating surface coal mining and certifies that this rule will not have a of $100 million or more in any given reclamation operations be ‘‘in significant economic impact on a year. This determination is based upon accordance with’’ the requirements of substantial number of small entities the fact that the State submittal, which SMCRA. Section 503(a)(7) requires that under the Regulatory Flexibility Act (5 is the subject of this rule, is based upon State programs contain rules and U.S.C. 601 et seq.). The State submittal, counterpart Federal regulations for regulations ‘‘consistent with’’ which is the subject of this rule, is based which an analysis was prepared and a regulations issued by the Secretary upon counterpart Federal regulations for determination made that the Federal pursuant to SMCRA. which an economic analysis was regulation did not impose an unfunded prepared and certification made that mandate. Executive Order 13211—Regulations such regulations would not have a List of Subjects in 30 CFR Part 936 That Significantly Affect The Supply, significant economic effect upon a Distribution, or Use of Energy substantial number of small entities. In Intergovernmental relations, Surface On May 18, 2001, the President issued making the determination as to whether mining, Underground mining. Executive Order 13211 which requires this rule would have a significant Dated: April 26, 2002. economic impact, the Department relied agencies to prepare a Statement of Charles E. Sandberg, Energy Effects for a rule that is (1) upon the data and assumptions for the counterpart Federal regulations. Acting Regional Director, Mid-Continent considered significant under Executive Regional Coordinating Center. Order 12866, and (2) likely to have a Small Business Regulatory Enforcement For the reasons set out in the significant adverse effect on the supply, Fairness Act distribution, or use of energy. Because preamble, 30 CFR part 936 is amended this rule is exempt from review under This rule is not a major rule under 5 as set forth below: Executive Order 12866 and is not U.S.C. 804(2), the Small Business PART 936—OKLAHOMA expected to have a significant adverse Regulatory Enforcement Fairness Act. effect on the supply, distribution, or use This rule: (a) Does not have an annual 1. The authority citation for Part 936 of energy, a Statement of Energy Effects effect on the economy of $100 million; continues to read as follows: is not required. (b) will not cause a major increase in costs or prices for consumers, Authority: 30 U.S.C. 1201 et seq. National Environmental Policy Act individual industries, Federal, State, or 2. Section 936.15 is amended in the This rule does not require an local governmental agencies or table by adding a new entry in environmental impact statement geographic regions; and (c) does not chronological order by ‘‘Date of final because section 702(d) of SMCRA (30 have significant adverse effects on publication’’ to read as follows: U.S.C. 1292(d)) provides that agency competition, employment, investment, decisions on proposed State regulatory productivity, innovation, or the ability § 936.15 Approval of Oklahoma regulatory program provisions do not constitute of U.S.-based enterprises to compete program amendments. major Federal actions within the with foreign-based enterprises. This * * * * *

Date of final publi- Original amendment submission date cation Citation/description

*******

November 20, 2001 ...... May 24, 2002 ...... OAC 460:20–7–2; 20–7–3; 20–7–4 Introductory paragraph, (2), (3), and (4)(B); 20–7–4.1; 20–7–5(a), (b)(1) and (2), (c), (d), (e), (f)(1) and (3), (g), (h); 20– 13–5(b)(14), (d)(2)(D).

[FR Doc. 02–13105 Filed 5–23–02; 8:45 am] BILLING CODE 4310–05–P

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DEPARTMENT OF THE TREASURY for payment by the United States analysis is not required. The revisions to (‘‘presenting banks’’). Under TCO, the part 240 in this interim rule incorporate Fiscal Service Department of the Treasury statutory changes, and do not create, in (Department) will direct a Federal and of themselves, a new debt collection 31 CFR Part 240 Reserve Bank to withhold credit from tool or otherwise create a new limit on RIN 1510–AA45 such presenting banks and apply the the rights of affected parties, including funds to satisfy a presenting bank’s debt small entities. Moreover, the revisions Indorsement and Payment of Checks to the Treasury. In accordance with the to part 240 concern the collection of Drawn on the United States Treasury DCIA, the Department will collect by delinquent debts by means of TCO, and means of TCO only if reclamation are in furtherance of specific authority AGENCY: Financial Management Service, demand and protest as described in 31 Fiscal Service, Treasury. established by the DCIA. In particular, CFR 240.7 and administrative offset as the DCIA provides that, ‘‘by presenting ACTION: Interim rule with request for described in 31 CFR 240.8 are Treasury checks for payment a comments. unsuccessful. This interim rule is presenting bank is deemed to authorize unrelated to the Notices of Proposed SUMMARY: This interim rule amends 31 Rulemaking published on September 21, this offset.’’ 31 U.S.C. 3712(e)(1). CFR Part 240, which governs the 1995 (60 FR 48940) and May 30, 1997 Consequently, any economic impact on indorsement and payment of checks (62 FR 29314). small entities will be the result of drawn on the United States Treasury specific statutory authority, rather than (Treasury), by incorporating procedures Regulatory Analyses a direct result of this interim rule. relating to the implementation of the Executive Order 12866, Regulatory Debt Collection Improvement Act of Administrative Procedure Act Planning and Review 1996 (DCIA). In particular, this rule We find good cause for issuing this describes Treasury Check Offset, a new It has been determined that this interim rule without prior notice and debt collection tool established by the regulation is not a significant regulatory DCIA. The DCIA authorizes the action. This interim rule will not have comment. Under the Administrative Secretary of the Treasury to collect an annual effect of $100 million or more Procedure Act, an agency is permitted to certain debts, owed to the Treasury by on the economy, and will not adversely issue a rule without prior notice and financial institutions presenting affect in a material way the economy, comment when the agency for good Treasury checks to a Federal Reserve productivity, competition, jobs, cause finds that notice and public Bank, by directing Federal Reserve environment, public health or safety, or procedure thereon are impracticable, Banks to withhold credit from such State, local, or tribal governments or unnecessary or contrary to the public presenting banks. This rule also communities. Further, this interim rule interest. 5 U.S.C. 553(b)(B). The renumbers certain sections and updates will not create a serious inconsistency provisions of the DCIA codified at 31 various addresses provided in 31 CFR or otherwise interfere with an action U.S.C. 3712(e) authorize the collection Part 240. taken or planned by another agency, nor of amounts owed by presenting banks DATES: Effective May 24, 2002. will it materially alter the budgetary by means of the withholding of credit Comments will be accepted until June effects of entitlements, grants, user fees, from financial institutions presenting 24, 2002. or loan programs, or the rights or Treasury checks for ultimate charge to obligations of their recipients. This ADDRESSES: All comments concerning the account of the Treasury. This rule this interim rule should be addressed to interim rule does not raise novel legal merely incorporates the TCO provisions Lester Smalls, Reclamation Branch or policy issues. of the DCIA into 31 CFR part 240, and Manager, Financial Processing Division, Clarity of Regulations clarifies the interaction between the Financial Management Service, Prince TCO provisions and pre-existing Executive Order 12866 and the Georges Center II Building, 3700 East- President’s memorandum of June 1, provisions relating to reclaiming West Highway, Room 724–D, 1998, require each agency to write all amounts owed to the Treasury by Hyattsville, Maryland 20782. Comments rules in plain language. We invite your presenting banks and collection of such also may be emailed to: comments on how to make this interim amounts by means of administrative [email protected]. rule easier to understand. For example: offset. With one exception, this interim FOR FURTHER INFORMATION CONTACT: • Have we organized the material in rule does not substantively amplify the Lester Smalls, Reclamation Branch this interim rule to suit your needs? plain language of the DCIA. The only Manager, Financial Processing Division, • Are the requirements in the interim substantive revision to 31 CFR part 240 at (202) 874–7945; Ronda Kent or rule clearly stated? that is not included in the TCO Randall S. Lewis, Senior Attorneys, at • Does the rule contain technical provisions of the DCIA is the provision (202) 874–6680. language or jargon that isn’t clear? codified at 31 CFR 240.9(d) which SUPPLEMENTARY INFORMATION: • What else could we do to make this provides that TCO does not apply to interim rule easier to understand? claims based on reclamations that have Background Please send any comments you have been outstanding for more than 10 This interim rule revises 31 CFR Part on the clarity of this interim rule to the years. Given that this provision limits 240 by adding new provisions in a new address specified in the ADDRESSES the application of the TCO provisions of § 240.9 relating to TCO, a debt section. the DCIA and, therefore, in itself does collection tool authorized by the DCIA, Regulatory Flexibility Act not adversely affect presenting banks, Pub. L. 104–134, Title III, § 31001(d)(4), we find that it is unnecessary to require codified at 31 U.S.C. 3712(e). The DCIA Because no notice of proposed prior notice and comment for that authorizes the Secretary to collect rulemaking is required, the provisions provision. Nevertheless, the public is amounts owed to the Treasury by of the Regulatory Flexibility Act (5 invited to submit comments on the financial institutions presenting U.S.C. 601 et seq.) do not apply. interim rule. Comments received will be Treasury checks to the Federal Reserve Accordingly, a regulatory flexibility

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taken into account before a final rule is Branch, Room 700–D, P.O. Box 1849, interest, penalties, and administrative issued. Hyattsville, MD 20788. The Director, costs thereon, or that a presenting bank For the same reasons, it has been Financial Processing Division, who has was not liable for the amount of the determined that a delayed effective date supervisory authority over the reclamation, Treasury will promptly is not required pursuant to 5 U.S.C. Reclamation Branch, or his/her refund to the presenting bank the 553(d)(3). authorized subordinate, shall consider amount of its payment. Treasury may and decide any protest properly refund the amount either by applying List of Subjects in 31 CFR Part 240 submitted under this paragraph. Neither the amount to another reclamation debt Banks, Banking, Checks, Counterfeit the Director, Financial Processing in accordance with this Part or other checks, Federal Reserve system, Division, nor any of his/her applicable law, or by returning the Forgery, Guarantees. subordinates, shall have any amount to the presenting bank. involvement in the process of making (c) Treasury Check Offset is used for Authority and Issuance findings or demands under § 240.6(a). In the purpose of collecting debt owed by For the reasons set out in the order to be considered, and to be timely, a presenting bank to the Federal preamble, 31 CFR Part 240 is amended a protest must be received not later than Government. As a consequence, as follows. 90 days after the reclamation date. presenting banks shall not be able to use Treasury will refrain from collection in the fact that Treasury checks presented PART 240—INDORSEMENT AND accordance with § 240.8 or § 240.9 while for payment have not been paid as the PAYMENT OF CHECKS DRAWN ON a timely protest is being considered. basis for a claim against Treasury, a THE UNITED STATES TREASURY Unresolved protested items will be Federal Reserve Bank, or other persons 1. The authority citation for part 240 appropriately annotated on the monthly or entities, including payees or other is revised to read as follows: summary of debt statement. indorsers of checks, for the amount of * * * * * the credit offset pursuant to 31 U.S.C. Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 4. Section 240.8(c) is revised to read 3712(e) and this section. U.S.C. 3328, 3331, 3343, 3711, 3712, 3716, (d) This section does not apply to a 3717; 332 U.S. 234 (1947); 318 U.S. 363 as follows: (1943). claim based upon a reclamation that has § 240.8 Offset. been outstanding for more than 10 years §§ 240.9–240.15 [Redesignated as * * * * * from the date of delinquency. §§240.10–240.16] (c) If Treasury is unable to collect an 6. Redesignated § 240.13(a)(2)(ii) is 2. Sections 240.9–240.15 are amount owed by use of the offset revised to read as follows: redesignated as §§ 240.10–240.16. described in paragraph (a) of this section, Treasury shall take such action § 240.13 Checks issued to incompetent 3. Section 240.7 is amended by payees. revising paragraphs (a)(1), (b), and (c)(1) against the presenting bank as may be (a) * * * to read as follows: necessary to protect the interests of the (a) * * * United States, including Treasury Check (2) * * * (1) That Treasury intends to collect Offset in accordance with § 240.9 or (ii) Was issued in payment of the debt through administrative offset in referral to the Department of Justice. principal or interest on U.S. securities, accordance with § 240.8 if the * * * * * it shall be forwarded to the Bureau of reclamation is not paid within 120 days the Public Debt, Division of Customer 5. New § 240.9 is added to read as Service, P.O. Box 426, Parkersburg, WV of the reclamation date, and if follows: administrative offset is unsuccessful, 26106. that Treasury intends to collect the debt § 240.9 Treasury Check Offset. * * * * * through Treasury Check Offset in (a) If Treasury is unable to effect Dated: May 16, 2002. accordance with § 240.9; * * * collection pursuant to § 240.7 or § 240.8 Richard L. Gregg, (b) Requests for an appointment to of this part, it will collect the principal Commissioner. inspect and copy Treasury’s records amount of the reclamation, accrued [FR Doc. 02–13033 Filed 5–23–02; 8:45 am] with respect to a reclamation and interest, penalty, and administrative requests to enter into repayment costs through Treasury Check Offset. BILLING CODE 4810–35–P agreements should be sent in writing to: Treasury Check Offset occurs when, at Department of the Treasury, Financial the direction of Treasury, a Federal Management Service, Financial Reserve Bank withholds, that is, offsets, DEPARTMENT OF TRANSPORTATION Processing Division, Reclamation credit from a presenting bank (e.g., a Branch, Room 700–D, P.O. Box 1849, financial institution presenting a Coast Guard Hyattsville, MD 20788. Treasury check for ultimate charge to (c)(1) If a presenting bank wishes to the account of the United States 33 CFR Part 100 contest its liability for the principal Treasury). The amount of credit offset is amount demanded, it shall send a applied to the principal amount of the [CGD05–02–022] protest, i.e., a written statement and reclamation, accrued interest, penalties, Special Local Regulations for Marine copies of all documentary evidence and administrative costs owed by the Events; Severn River, College Creek, (e.g., affidavits, account agreements, presenting bank. As provided by the and Weems Creek, Annapolis, signature cards) and other written provisions of 31 U.S.C. 3712(e), by Maryland information raising a question of law or presenting Treasury checks for payment, fact which, if resolved in the presenting the presenting bank is deemed to AGENCY: Coast Guard, DOT. bank’s favor, would show that the authorize Treasury Check Offset. ACTION: Notice of implementation. presenting bank is not liable, to: (b) If Treasury effects offset under this Department of the Treasury, Financial section and it is later determined that SUMMARY: The Coast Guard is Management Service, Financial the presenting bank paid the principal implementing the special local Processing Division, Reclamation amount of the reclamation and accrued regulations at 33 CFR 100.518 for the

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U.S. Naval Academy Crew Races, a DEPARTMENT OF TRANSPORTATION Dated: May 16, 2002. marine event to be held May 26, 2002, James D. Hull, on the waters of the Severn River at Coast Guard Vice Admiral, U.S. Coast Guard, Commander, Annapolis, Maryland. These special Fifth Coast Guard District. local regulations are necessary to 33 CFR Part 100 [FR Doc. 02–13135 Filed 5–23–02; 8:45 am] control vessel traffic due to the confined BILLING CODE 4910–15–P nature of the waterway and expected [CGD05–02–021] vessel congestion during the event. The effect will be to restrict general Special Local Regulations for Marine DEPARTMENT OF TRANSPORTATION Events; Norfolk Harbor, Elizabeth navigation in the regulated area for the River, Norfolk and Portsmouth, Coast Guard safety of spectators and vessels Virginia transiting the event area. 33 CFR Part 165 EFFECTIVE DATES: 33 CFR 100.518 is AGENCY: Coast Guard, DOT. effective from 5 a.m. to 8 a.m. on May ACTION: Notice of implementation. [COTP Huntington–02–004] 26, 2002. SUMMARY: The Coast Guard is RIN 2115–AA97 FOR FURTHER INFORMATION CONTACT: Ron implementing the special local Houck, Marine Information Specialist, regulations at 33 CFR 100.501 for the Safety Zone; Ohio River Miles 355.5 to Commander, Coast Guard Activities Portsmouth 250th Birthday Party 356.5, Portsmouth, Ohio Baltimore, 2401 Hawkins Point Road, Fireworks, to be held May 26, 2002, AGENCY: Coast Guard, DOT. Baltimore, MD 21226–1971, at (410) over the waters of the Elizabeth River 576–2674. between Norfolk and Portsmouth, ACTION: Temporary final rule. SUPPLEMENTARY INFORMATION: The U.S. Virginia. This action is necessary to SUMMARY: The Coast Guard is Naval Academy will sponsor crew races provide for the safety of life on establishing a temporary safety zone for on the waters of the Severn River at navigable waters during the event. The the waters of the Ohio River beginning Annapolis, Maryland. The event will effect will be to restrict general at mile 355.5 and ending at mile 356.5, navigation in the regulated area for the consist of intercollegiate crew rowing extending the entire width of the river. safety of spectators, participants and teams racing along a 2000-meter course This safety zone is needed to protect vessels transiting the event area. on the waters of the Severn River. A spectators and vessels from the potential fleet of spectator vessels is expected to EFFECTIVE DATES: 33 CFR 100.501 is safety hazards associated with a gather near the event site to view the effective from 6:30 p.m. to 9:30 p.m. fireworks display. Entry into this zone competition. In order to ensure the EDT on May 26, 2002. is prohibited, unless specifically safety of participants, spectators and FOR FURTHER INFORMATION CONTACT: authorized by the Captain of the Port, transiting vessels, 33 CFR 100.518 will Chief Petty Officer Jerry Saffold, Marine Huntington or his designated representative. be in effect for the duration of the event. Events Coordinator, Commander, Coast Under provisions of 33 CFR 100.518, Guard Group Hampton Roads, 4000 DATES: This rule is effective from 9:30 vessels may not enter the regulated area Coast Guard Blvd., Portsmouth, VA p.m. to 11 p.m. on July 4, 2002. without permission from the Coast 23703, at (757) 483–8521. ADDRESSES: Documents indicated in this Guard Patrol Commander. Spectator SUPPLEMENTARY INFORMATION: On preamble as being available in the vessels may anchor outside the Saturday, May 26, 2002, Ports Events, docket, are part of docket [COTP regulated area but may not block a Inc. will sponsor the Portsmouth 250th Huntington-02–004] and are available navigable channel. Birthday Party Fireworks over the for inspection or copying at Marine Safety Office Huntington, 1415 6th In addition to this notice, the waters of the Elizabeth River, between Avenue, Huntington, West Virginia, maritime community will be provided Norfolk and Portsmouth, Virginia. The between 8 a.m. and 4 p.m., Monday extensive advance notification via the event will consist of a pyrotechnics through Friday, except Federal holidays. Local Notice to Mariners, marine display lasting approximately 45 minutes. A fleet of spectator vessels is FOR FURTHER INFORMATION CONTACT: information broadcasts, and area expected to gather near the event site to Chief Petty Officer, Rick Leffler, Marine newspapers, so mariners can adjust view the fireworks. In order to ensure Safety Office Huntington, Marine Event their plans accordingly. the safety of participants, spectators and Coordinator at (304) 529–5524. Dated: May 16, 2002. transiting vessels, 33 CFR 100.501 will SUPPLEMENTARY INFORMATION: James D. Hull, be in effect for the duration of the event. Regulatory Information Vice Admiral, U.S. Coast Guard, Commander, Under provisions of 33 CFR 100.501, Fifth Coast Guard District. vessels may not enter the regulated area We did not publish a notice of [FR Doc. 02–13139 Filed 5–23–02; 8:45 am] without permission from the Coast proposed rulemaking (NPRM) for this Guard Patrol Commander. Spectator BILLING CODE 4910–15–P regulation. Under 5 U.S.C. 553(b)(B), the vessels may anchor outside the Coast Guard finds that good cause exists regulated area but may not block a for not publishing an NPRM. navigable channel. Information was made available to the In addition to this notice, the Coast Guard in insufficient time to maritime community will be provided publish a NPRM. Publishing a NPRM extensive advance notification via the with a comment period would be Local Notice to Mariners, marine contrary to public interest since action information broadcasts, and area is needed to protect vessels and newspapers, so mariners can adjust mariners from the hazards associated their plans accordingly. with a fireworks display.

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Background and Purpose will be notified in advance of the zone Interference with Constitutionally The Captain of the Port Huntington, is through broadcast notice to mariners. Protected Property Rights. If you are a small business entity and establishing a safety zone between mile Civil Justice Reform are significantly affected by this 355.5 and 356.5 of the Ohio River, regulation please contact Chief Petty This rule meets applicable standards extending the entire width of the river. Officer Rick Leffler, Marine Safety in sections 3(a) and 3(b)(2) of Executive This safety zone is needed to protect Office Huntington at (304) 529–5524. Order 12988, Civil Justice Reform, to spectators and vessels from the potential minimize litigation, eliminate safety hazards associated with a Assistance for Small Entities ambiguity, and reduce burden. fireworks display. All vessels are Under section 213(a) of the Small prohibited from transiting within this Business Regulatory Enforcement Protection of Children safety zone unless authorized by the Fairness Act of 1996 (Public Law 104– We have analyzed this rule under Captain of the Port, Huntington or his 121), we offered to assist small entities Executive Order 13045, Protection of designated representative. in understanding the rule so that they Children from Environmental Health Regulatory Evaluation could better evaluate its effects on them Risks and Safety Risks. This rule is not and participate in the rulemaking an economically significant rule and This rule is not a ‘‘significant process. Small businesses may send does not create an environmental risk to regulatory action’’ under section 3(f) of comments on the actions of Federal health or risk to safety that may Executive Order 12866, Regulatory employees who enforce, or otherwise disproportionately affect children. Planning and Review, and does not determine compliance with, Federal require an assessment of potential costs Indian Tribal Governments regulations to the Small Business and and benefits under section 6(a)(3) of that Agriculture Regulatory Enforcement This rule does not have tribal Order. The Office of Management and Ombudsman and the Regional Small implications under Executive Order Budget has not reviewed it under that Business Regulatory Fairness Boards. 13175, Consultation and Coordination Order. It is not ‘‘significant’’ under the The Ombudsman evaluates these with Indian Tribal Governments, regulatory policies and procedures of actions annually and rates each agency’s because it does not have a substantial the Department of Transportation (DOT) responsiveness to small business. If you direct effect on one or more Indian (44 FR 11040, February 26, 1979). wish to comment on actions by tribes, on the relationship between the The Coast Guard expects the employees of the Coast Guard, call 1– Federal Government and Indian tribes, economic impact of this proposal to be 888–REG–FAIR (1–888–734–3247). or on the distribution of power and so minimal that a full Regulatory responsibilities between the Federal Evaluation under paragraph 10(e) of the Collection of Information Government and Indian tribes. regulatory policies and procedures of This rule calls for no new collection Energy Effects DOT is unnecessary. This regulation of information under the Paperwork will only be in effect for a short period Reduction Act of 1995 (44 U.S.C. 3501– We have analyzed this rule under of time and notifications to the marine 3520). Executive Order 13211, Actions community will be made through Concerning Regulations That broadcast notice to mariners. The Federalism Significantly Affect Energy Supply, impacts on routine navigation are A rule has implications for federalism Distribution, or Use. We have expected to be minimal. under Executive Order 13132, determined that it is not a ‘‘significant Small Entities Federalism, if it has a substantial direct energy action’’ under that Order because effect on State or local governments and it is not a ‘‘significant regulatory action’’ Under the Regulatory Flexibility Act would either preempt State law or under Executive Order 12866 and is not (5 U.S.C. 601–612), we considered impose a substantial direct cost of likely to have a significant adverse effect whether this rule would have a compliance on them. We have analyzed on the supply, distribution, or use of significant economic impact on a this rule under that Order and have energy. It has not been designated by the substantial number of small entities. determined that it does not have Administrator of the Office of The term ‘‘small entities’’ comprises implications for federalism. Information and Regulatory Affairs as a small businesses, not-for-profit significant energy action. Therefore, it Unfunded Mandates Reform Act organizations that are independently does not require a Statement of Energy owned and operated and are not The Unfunded Mandates Reform Act Effects under Executive Order 13211. dominant in their fields, and of 1995 (2 U.S.C. 1531–1538) requires governmental jurisdictions with Federal agencies to assess the effects of Environment populations of less than 50,000. their discretionary regulatory actions. In We have considered the The Coast Guard certifies under 5 particular, the Act addresses actions environmental impact of this rule and U.S.C. 605(b) that this rule will not have that may result in the expenditure by a concluded that under figure 2–1, a significant economic impact on a State, local, or tribal government, in the paragraph 34(g), of Commandant substantial number of small entities. aggregate, or by the private sector of Instruction M16475.1D, this rule is This rule will affect the following $100,000,000 or more in any one year. categorically excluded from further entities, some of which may be small Though this rule will not result in such environmental documentation. A entities: The owners or operators of an expenditure, we so discuss the ‘‘Categorical Exclusion Determination’’ vessels intending to transit the Ohio effects of this rule elsewhere in this is available for inspection or copying River from mile 355.5 to 356.5, from preamble. where indicated under ADDRESSES. 9:30 p.m. to 11 p.m. on July 4, 2002. This safety zone will not have a Taking of Private Property List of Subjects in 33 CFR Part 165 significant economic impact on a This rule will not effect a taking of Harbors, Marine safety, Navigation substantial number of small entities private property or otherwise have (water), Reporting and recordkeeping because this rule will be in effect for taking implications under Executive requirements, Security measures, only a short period of time and mariners Order 12630, Governmental Actions and Waterways.

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For the reasons discussed in the SUMMARY: The Coast Guard is Planning and Review, and does not preamble, the Coast Guard amends 33 establishing a temporary safety zone for require an assessment of potential costs CFR part 165 as follows: the certain waters of the Kanawha River. and benefits under section 6(a)(3) of that This safety zone is needed to protect Order. The Office of Management and PART 165—REGULATED NAVIGATION spectators and vessels from the potential Budget has not reviewed it under that AREAS AND LIMITED ACCESS AREAS safety hazards associated with a Order. It is not ‘‘significant’’ under the regulatory policies and procedures of 1. The authority citation for part 165 fireworks display. Entry into this zone the Department of Transportation (DOT) continues to read as follows: is prohibited, unless specifically authorized by the Captain of the Port, (44 FR 11040, February 26, 1979). Authority: 33 U.S.C. 1231; 50 U.S.C. 191, Huntington or his designated The Coast Guard expects the 33 CFR 1.05–1(g), 6.04–1, 6.04–6 160.5; 49 representative. economic impact of this proposal to be CFR 1.46. so minimal that a full Regulatory DATES: This rule is effective from 9:15 Evaluation under paragraph 10(e) of the 2. A new temporary § 165.T08–048 is p.m. to 9:45 p.m. on June 2, 2002. added to read as follows: regulatory policies and procedures of ADDRESSES: Documents indicated in this DOT is unnecessary. This regulation § 165.T08–048 Ohio River Miles 355.5 to preamble as being available in the will only be in effect for a short period 356.5, Portsmouth, Ohio. docket, are part of docket [COTP of time and notifications to the marine (a) Location. The following area is a Huntington–02–002] and are available community will be made through safety zone: the waters of the Ohio River for inspection or copying at Marine broadcast notice to mariners. The from mile 355.5 to mile 356.5 extending Safety Office Huntington, 1415 6th impacts on routine navigation are the entire width of the river. Avenue, Huntington, West Virginia, expected to be minimal. (b) Effective date. This section is between 8 a.m. and 4 p.m., Monday effective from 9:30 p.m. to 11 p.m. on through Friday, except Federal holidays. Small Entities July 4, 2002. FOR FURTHER INFORMATION CONTACT: Under the Regulatory Flexibility Act (c) Regulations. (1) In accordance with Chief Petty Officer, Rick Leffler, Marine (5 U.S.C. 601–612), we considered the general regulations in § 165.23 of Safety Office Huntington, Marine Event whether this rule would have a this part, entry of vessels into this zone Coordinator at (304) 529–5524. significant economic impact on a is prohibited unless authorized by the SUPPLEMENTARY INFORMATION: substantial number of small entities. Coast Guard Captain of the Port The term ‘‘small entities’’ comprises Huntington or his designated Regulatory Information small businesses, not-for-profit representative. We did not publish a notice of organizations that are independently (2) Persons or vessels requiring entry proposed rulemaking (NPRM) for this owned and operated and are not into or passage through the zone must regulation. Under 5 U.S.C. 553(b)(B), the dominant in their fields, and request permission from the Captain of Coast Guard finds that good cause exists governmental jurisdictions with the Port Huntington, or his designated for not publishing an NPRM, and, under populations of less than 50,000. representative. They may be contacted 5 U.S.C. 553(d)(3), good cause exists for The Coast Guard certifies under 5 via VHF–FM Channel 13 or 16 or via making this rule effective less than 30 U.S.C. 605(b) that this rule will not have telephone at (304) 529–5524. days after publication in the Federal a significant economic impact on a (3) All persons and vessels shall Register. Information was made substantial number of small entities. comply with the instructions of the available to the Coast Guard in This rule will affect the following Captain of the Port Huntington and insufficient time to publish a NPRM or entities, some of which may be small designated on-scene U.S. Coast Guard to have a Temporary final rule entities: the owners or operators of patrol personnel. On-scene U.S. Coast published in the Federal Register 30 vessels intending to transit the Kanawha Guard patrol personnel include days prior to the event. Publishing a River from mile 56.0 to 57.0, from 9:15 commissioned, warrant, and petty NPRM and delaying its effective date p.m. to 9:45 p.m. on June 2, 2002. This officers of the U.S. Coast Guard. would be contrary to public interest safety zone will not have a significant Dated: May 13, 2002. since immediate action is needed to economic impact on a substantial protect vessels and mariners from the number of small entities because this L. D. Stroh, hazards associated with a fireworks rule will be in effect for only a short Commander, U.S. Coast Guard, Captain of display. period of time and mariners will be the Port Huntington. notified in advance of the zone through [FR Doc. 02–13140 Filed 5–23–02; 8:45 am] Background and Purpose broadcast notice to mariners. BILLING CODE 4910–15–U The Captain of the Port Huntington, is If you are a small business entity and establishing a safety zone between mile are significantly affected by this 56.0 and 57.0 of the Kanawha River, regulation please contact Chief Petty DEPARTMENT OF TRANSPORTATION extending the entire width of the river. Officer Rick Leffler, Marine Safety Coast Guard This safety zone is needed to protect Office Huntington at (304) 529–5524. spectators and vessels from the potential Assistance for Small Entities 33 CFR Part 165 safety hazards associated with a fireworks display. All vessels are Under section 213(a) of the Small [COTP Huntington–02–002] prohibited from transiting within this Business Regulatory Enforcement safety zone unless authorized by the Fairness Act of 1996 (Public Law 104– RIN 2115–AA97 Captain of the Port, Huntington or his 121), we offered to assist small entities designated representative. in understanding the rule so that they Safety Zone; Kanawha River Miles 56.0 could better evaluate its effects on them to 57.0, Charleston, West Virginia Regulatory Evaluation and participate in the rulemaking AGENCY: Coast Guard, DOT. This rule is not a ‘‘significant process. Small businesses may send regulatory action’’ under section 3(f) of comments on the actions of Federal ACTION: Temporary final rule. Executive Order 12866, Regulatory employees who enforce, or otherwise

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determine compliance with, Federal Indian Tribal Governments River from mile 56.0 to mile 57.0 regulations to the Small Business and This rule does not have tribal extending the entire width of the river. (b) Effective date. This section is Agriculture Regulatory Enforcement implications under Executive Order effective from 9:15 p.m. to 9:45 p.m. on Ombudsman and the Regional Small 13175, Consultation and Coordination June 2, 2002. Business Regulatory Fairness Boards. with Indian Tribal Governments, (c) Regulations. (1) In accordance with The Ombudsman evaluates these because it does not have a substantial the general regulations in § 165.23 of actions annually and rates each agency’s direct effect on one or more Indian this part, entry of vessels into this zone responsiveness to small business. If you tribes, on the relationship between the is prohibited unless authorized by the wish to comment on actions by Federal Government and Indian tribes, Coast Guard Captain of the Port employees of the Coast Guard, call 1– or on the distribution of power and Huntington or his designated 888–REG–FAIR (1–888–734–3247). responsibilities between the Federal representative. Government and Indian tribes. Collection of Information (2) Persons or vessels requiring entry This rule calls for no new collection Energy Effects into or passage through the zone must of information under the Paperwork request permission from the Captain of We have analyzed this rule under Reduction Act of 1995 (44 U.S.C. 3501– the Port Huntington, or his designated Executive Order 13211, Actions 3520). representative. They may be contacted Concerning Regulations That via VHF–FM Channel 13 or 16 or via Federalism Significantly Affect Energy Supply, telephone at (304) 529–5524. Distribution, or Use. We have A rule has implications for federalism (3) All persons and vessels shall determined that it is not a ‘‘significant under Executive Order 13132, comply with the instructions of the energy action’’ under that Order because Federalism, if it has a substantial direct Captain of the Port Huntington and it is not a ‘‘significant regulatory action’’ effect on State or local governments and designated on-scene U.S. Coast Guard under Executive Order 12866 and is not would either preempt State law or patrol personnel. On-scene U.S. Coast likely to have a significant adverse effect impose a substantial direct cost of Guard patrol personnel include on the supply, distribution, or use of compliance on them. We have analyzed commissioned, warrant, and petty energy. It has not been designated by the this rule under that Order and have officers of the U.S. Coast Guard. Administrator of the Office of determined that it does not have Dated: May 13, 2002. implications for federalism. Information and Regulatory Affairs as a significant energy action. Therefore, it L.D. Stroh, Unfunded Mandates Reform Act does not require a Statement of Energy Commander, U.S. Coast Guard, Captain of The Unfunded Mandates Reform Act Effects under Executive Order 13211. the Port, Huntington. [FR Doc. 02–13138 Filed 5–23–02; 8:45 am] of 1995 (2 U.S.C. 1531–1538) requires Environment Federal agencies to assess the effects of BILLING CODE 4910–15–P their discretionary regulatory actions. In We have considered the particular, the Act addresses actions environmental impact of this rule and that may result in the expenditure by a concluded that under figure 2–1, DEPARTMENT OF TRANSPORTATION paragraph 34(g), of Commandant State, local, or tribal government, in the Coast Guard aggregate, or by the private sector of Instruction M16475.1D, this rule is categorically excluded from further $100,000,000 or more in any one year. 33 CFR Part 165 Though this rule will not result in such environmental documentation. A an expenditure, we so discuss the ‘‘Categorical Exclusion Determination’’ [CGD09–02–021] effects of this rule elsewhere in this is available for inspection or copying preamble. where indicated under ADDRESSES. Safety Zone; Captain of the Port Detroit Zone Taking of Private Property List of Subjects in 33 CFR Part 165 AGENCY: Coast Guard, DOT. This rule will not effect a taking of Harbors, Marine safety, Navigation ACTION: private property or otherwise have (water), Reporting and recordkeeping Notice of implementation. requirements, Security measures, taking implications under Executive SUMMARY: Waterways. The Coast Guard is Order 12630, Governmental Actions and implementing safety zones for annual Interference with Constitutionally For the reasons discussed in the fireworks displays in the Captain of the Protected Property Rights. preamble, the Coast Guard amends 33 Port Detroit Zone during June 2002. Civil Justice Reform CFR part 165 as follows: This action is necessary to provide for the safety of life and property on This rule meets applicable standards PART 165—REGULATED NAVIGATION navigable waters during these events. in sections 3(a) and 3(b)(2) of Executive AREAS AND LIMITED ACCESS AREAS These zones will restrict vessel traffic Order 12988, Civil Justice Reform, to 1. The authority citation for part 165 from a portion of the Captain of the Port minimize litigation, eliminate Detroit Zone. ambiguity, and reduce burden. continues to read as follows: DATES: Authority: 33 U.S.C. 1231; 50 U.S.C. 191, Effective from 12:01 a.m.(Eastern Protection of Children 33 CFR 1.05–1(g), 6.04–1, 6.04–6 160.5; 49 Time) on June 1, 2002 to 11:59 We have analyzed this rule under CFR 1.46. p.m.(Eastern Time) on June 30, 2002. FOR FURTHER INFORMATION CONTACT: Executive Order 13045, Protection of 2. A new temporary § 165.T08–046 is Children from Environmental Health added to read as follows: Lieutenant Junior Grade Brandon Risks and Safety Risks. This rule is not Sullivan, U.S. Coast Guard Marine an economically significant rule and § 165.T08–046 Kanawha River Miles 56.0 to Safety Office Detroit, MI at (313) 568– does not create an environmental risk to 57.0, Charleston, West Virginia. 9580. health or risk to safety that may (a) Location. The following area is a SUPPLEMENTARY INFORMATION: The Coast disproportionately affect children. safety zone: the waters of the Kanawha Guard is implementing the permanent

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safety zones in 33 CFR 165.907 (66 FR DEPARTMENT OF TRANSPORTATION fireworks display. All vessels are 27868, May 21, 2001), for fireworks prohibited from transiting within this displays in the Captain of the Port Coast Guard safety zone unless authorized by the Detroit Zone during June 2002. The Captain of the Port, Huntington or his following safety zones are in effect for 33 CFR Part 165 designated representative. fireworks displays occurring in the [COTP Huntington–02–003] Regulatory Evaluation month of June 2002: (1) Bay-Rama Fishfly Festival, New RIN 2115–AA97 This rule is not a ‘‘significant Baltimore, MI. Location: All waters off regulatory action’’ under section 3(f) of New Baltimore City Park, Lake St. Clair- Safety Zone; Ohio River Miles 307.0 to Executive Order 12866, Regulatory Anchor Bay bounded by the arc of a 308.0, Huntington, West Virginia Planning and Review, and does not circle with a 300-yard radius with its AGENCY: Coast Guard, DOT. require an assessment of potential costs center located at approximate position and benefits under section 6(a)(3) of that ACTION: Temporary final rule. 42°41′ N, 082°44′ W, on June 26, 2002, Order. The Office of Management and from 9 p.m. to 11 p.m. SUMMARY: The Coast Guard is Budget has not reviewed it under that (2) St. Clair Shores Fireworks, St. Clair establishing a temporary safety zone for Order. It is not ‘‘significant’’ under the Shores, MI. Location: All waters of Lake the waters of the Ohio River beginning regulatory policies and procedures of St. Clair within a 300-yard radius of the at mile 307.0 and ending at mile 308.0, the Department of Transportation fireworks barge in approximate position extending the entire width of the river. (DOT)(44 FR 11040, February 26, 1979). ° ′ ° ′ 42 32 N, 082 51 W, about 1000-yards This safety zone is needed to protect The Coast Guard expects the east of Veterans Memorial Park (off spectators and vessels from the potential economic impact of this proposal to be Masonic Rd.), St. Clair Shores, MI on safety hazards associated with a so minimal that a full Regulatory June 28, 2002, from 10 p.m. to 10:30 fireworks display. Entry into this zone Evaluation under paragraph 10 (e) of the p.m. is prohibited, unless specifically regulatory policies and procedures of (3) Port Huron 4th of July Fireworks, authorized by the Captain of the Port, DOT is unnecessary. This regulation Port Huron, MI. Location: All waters of Huntington or his designated will only be in effect for a short period the Black River within a 300-yard radius representative. of time and notifications to the marine of the fireworks barge in approximate DATES: This rule is effective from 9:30 community will be made through position 42°58′ N, 082°25′ W about 300- p.m. to 10:45 p.m. on June 29, 2002. broadcast notice to mariners. The yards east of 223 Huron Ave., in the impacts on routine navigation are ADDRESSES: Documents indicated in this Black River on June 30, 2002, from 10 expected to be minimal. p.m. until 11 p.m. preamble as being available in the (4) Grosse Pointe Farms Fireworks, docket, are part of docket [COTP Small Entities Huntington–02–003] and are available Grosse Pointe Farms, MI. Location: All Under the Regulatory Flexibility Act waters of Lake St. Clair within a 300- for inspection or copying at Marine Safety Office Huntington, 1415 6th (5 U.S.C. 601–612), we considered yard radius of the fireworks barge in whether this rule would have a ° ′ ° ′ Avenue, Huntington, West Virginia, approximate position 42 23 N, 082 52 significant economic impact on a W, about 300-yards east of Grosse Pointe between 8 a.m. and 4 p.m., Monday through Friday, except Federal holidays. substantial number of small entities. Farms on June 29, 2002 from 9:30 p.m. The term ‘‘small entities’’ comprises FOR FURTHER INFORMATION CONTACT: to 10:30 p.m. small businesses, not-for-profit (5) Sigma Gamma Assoc., Grosse Chief Petty Officer, Rick Leffler, Marine organizations that are independently Pointe Farms, MI. Location: The waters Safety Office Huntington, Marine Event owned and operated and are not off Ford’s Cove, Lake St. Clair bounded Coordinator at (304) 529–5524. dominant in their fields, and by the arc of a circle with a 300-yard SUPPLEMENTARY INFORMATION: governmental jurisdictions with radius with its center in approximate Regulatory Information populations of less than 50,000. position 42°27′ N, 082°52′ W on June 24, We did not publish a notice of The Coast Guard certifies under 5 2002 from 6 p.m. to 10 p.m. U.S.C. 605(b) that this rule will not have In order to ensure the safety of proposed rulemaking (NPRM) for this regulation. Under 5 U.S.C. 553(b)(B), the a significant economic impact on a spectators and transiting vessels, these substantial number of small entities. safety zones will be in effect for the Coast Guard finds that good cause exists for not publishing an NPRM. This rule will affect the following duration of the events. In cases where entities, some of which may be small shipping is affected, commercial vessels Information was made available to the Coast Guard in insufficient time to entities: the owners or operators of may request permission from the vessels intending to transit the Ohio Captain of the Port Detroit to transit the publish a NPRM. Publishing a NPRM with a comment period would be River from mile 307.0 to 308.0, from safety zone. Approval will be made on 9:30 p.m. to 10:45 p.m. on June 29, a case-by case basis. Requests must be contrary to public interest since action is needed to protect vessels and 2002. This safety zone will not have a made in advance and approved by the significant economic impact on a Captain of Port before transits will be mariners from the hazards associated with a fireworks display. substantial number of small entities authorized. The Captain of the Port may because this rule will be in effect for be contacted via U.S. Coast Guard Background and Purpose only a short period of time and mariners Group Detroit on channel 16, VHF–FM. The Captain of the Port Huntington, is will be notified in advance of the zone Dated: May 16, 2002. establishing a safety zone between mile through broadcast notice to mariners. P.G. Gerrity, 307.8 and 308.0 of the Ohio River, If you are a small business entity and Commander, U.S. Coast Guard Captain of extending the entire width of the river. are significantly affected by this the Port Detroit. This safety zone is needed to protect regulation please contact Chief Petty [FR Doc. 02–13136 Filed 5–23–02; 8:45 am] spectators and vessels from the potential Officer Rick Leffler, Marine Safety BILLING CODE 4910–15–P safety hazards associated with a Office Huntington at (304) 529–5524.

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Assistance for Small Entities minimize litigation, eliminate PART 165—REGULATED NAVIGATION Under section 213(a) of the Small ambiguity, and reduce burden. AREAS AND LIMITED ACCESS AREAS Business Regulatory Enforcement Protection of Children 1. The authority citation for part 165 Fairness Act of 1996 (Public Law 104– continues to read as follows: 121), we offered to assist small entities We have analyzed this rule under Executive Order 13045, Protection of Authority: 33 U.S.C. 1231; 50 U.S.C. 191, in understanding the rule so that they 33 CFR 1.05–1(g), 6.04–1, 6.04–6 160.5; 49 could better evaluate its effects on them Children from Environmental Health CFR 1.46. and participate in the rulemaking Risks and Safety Risks. This rule is not process. Small businesses may send an economically significant rule and 2. A new temporary § 165.T08–047 is comments on the actions of Federal does not create an environmental risk to added to read as follows: employees who enforce, or otherwise health or risk to safety that may § 165.T08–047 Ohio River Miles 307.0 to determine compliance with, Federal disproportionately affect children. 308.0, Huntington, West Virginia. regulations to the Small Business and Indian Tribal Governments (a) Location. The following area is a Agriculture Regulatory Enforcement safety zone: the waters of the Ohio River Ombudsman and the Regional Small This rule does not have tribal from mile 307.0 to mile 308.0 extending Business Regulatory Fairness Boards. implications under Executive Order the entire width of the river. The Ombudsman evaluates these 13175, Consultation and Coordination (b) Effective date. This section is actions annually and rates each agency’s with Indian Tribal Governments, effective from 9:30 p.m. to 10:45 p.m. on responsiveness to small business. If you because it does not have a substantial June 29, 2002. wish to comment on actions by direct effect on one or more Indian (c) Regulations. (1) In accordance with employees of the Coast Guard, call 1– tribes, on the relationship between the the general regulations in § 165.23 of 888–REG–FAIR (1–888–734–3247). Federal Government and Indian tribes, this part, entry of vessels into this zone Collection of Information or on the distribution of power and is prohibited unless authorized by the Coast Guard Captain of the Port This rule calls for no new collection responsibilities between the Federal Government and Indian tribes. Huntington or his designated of information under the Paperwork representative. Reduction Act of 1995 (44 U.S.C. 3501– Energy Effects (2) Persons or vessels requiring entry 3520). into or passage through the zone must We have analyzed this rule under Federalism request permission from the Captain of Executive Order 13211, Actions the Port Huntington, or his designated A rule has implications for federalism Concerning Regulations That representative. They may be contacted under Executive Order 13132, Significantly Affect Energy Supply, via VHF–FM Channel 13 or 16 or via Federalism, if it has a substantial direct Distribution, or Use. We have telephone at (304) 529–5524. effect on State or local governments and determined that it is not a ‘‘significant (3) All persons and vessels shall would either preempt State law or energy action’’ under that order because comply with the instructions of the impose a substantial direct cost of it is not a ‘‘significant regulatory action’’ Captain of the Port Huntington and compliance on them. We have analyzed under Executive Order 12866 and is not designated on-scene U.S. Coast Guard this rule under that Order and have likely to have a significant adverse effect patrol personnel. On-scene U.S. Coast determined that it does not have on the supply, distribution, or use of Guard patrol personnel include implications for federalism. energy. It has not been designated by the commissioned, warrant, and petty Unfunded Mandates Reform Act Administrator of the Office of officers of the U.S. Coast Guard. Information and Regulatory Affairs as a Dated: May 13, 2002. The Unfunded Mandates Reform Act significant energy action. Therefore, it L.D. Stroh, of 1995 (2 U.S.C. 1531–1538) requires does not require a Statement of Energy Commander, U.S. Coast Guard, Captain of Federal agencies to assess the effects of Effects under Executive Order 13211. their discretionary regulatory actions. In the Port Huntington. particular, the Act addresses actions Environment [FR Doc. 02–13141 Filed 5–23–02; 8:45 am] that may result in the expenditure by a BILLING CODE 4910–15–P State, local, or tribal government, in the We have considered the aggregate, or by the private sector of environmental impact of this rule and $100,000,000 or more in any one year. concluded that under figure 2–1, DEPARTMENT OF DEFENSE Though this rule will not result in such paragraph 34(g), of Commandant an expenditure, we so discuss the Instruction M16475.1D, this rule is Corps of Engineers, Department of the effects of this rule elsewhere in this categorically excluded from further Army preamble. environmental documentation. A ‘‘Categorical Exclusion Determination’’ 33 CFR Part 334 Taking of Private Property is available for inspection or copying This rule will not effect a taking of where indicated under ADDRESSES. United States Navy Restricted Area, Port Gardner and East Waterway, private property or otherwise have List of Subjects in 33 CFR Part 165 taking implications under Executive Washington Order 12630, Governmental Actions and Harbors, Marine safety, Navigation AGENCY: United States Army Corps of Interference with Constitutionally (water), Reporting and recordkeeping Engineers, DoD. Protected Property Rights. requirements, Security measures, ACTION: Final rule. Civil Justice Reform Waterways. SUMMARY: The U.S. Army Corps of This rule meets applicable standards For the reasons discussed in the Engineers is amending its regulations to in sections 3(a) and 3(b)(2) of Executive preamble, the Coast Guard amends 33 establish a restricted area in waters Order 12988, Civil Justice Reform, to CFR part 165 as follows: adjacent to the Everett Naval Base at

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Everett, Washington. This action will action. We have concluded, based on 122°13′33″ West (Point 3); thence to effectively establish a 300-foot restricted the minor nature of the proposed latitude 47°59′13″ North, longitude zone around moored vessels and major additional restricted area regulations, 122°13′38″ West (Point 4); thence to piers of Naval Station Everett, and lesser that this action will not have a latitude 47°59′05.5″ North, longitude distances from the other piers, basins, significant impact to the quality of the 122°13′48.5″ West (Point 5); thence to and shorelines of the installation. The human environment, and preparation of latitude 47°58′51″ North, longitude regulations are necessary to ensure an Environmental Impact Statement 122°14′04″ West (Point 6); thence to public safety and meet the Navy’s (EIS) is not required. The EA may be latitude 47°58′45.5″ North, longitude security, safety, and operational reviewed at the Seattle District office 122°13′53″ West (Point 7); thence to requirements pertaining to the moorage listed at the end of FOR FURTHER latitude 47°58′45.5″ North, longitude and movement of major combatants and INFORMATION CONTACT, above. 122°13′44″ West (Point 8); thence to other vessels at a major naval base. latitude 47°58′48″ North, longitude D. Unfunded Mandates Act ° ′ ″ EFFECTIVE DATE: June 24, 2002. 122 13 40 West (Point 9); thence to This rule does not impose an ° ′ ″ ADDRESSES: latitude 47 58 59 North, longitude U.S. Army Corps of enforceable duty among the private ° ′ ″ Engineers, ATTN: CECW–OR, 441 G 122 13 30 West (Point 10); thence to sector and, therefore, is not a Federal latitude 47°59′14″ North, longitude Street, NW, Washington, DC 20314– private sector mandate and is not ° ′ ″ 1000. 122 13 18 West (Point 11); thence to subject to the requirements of Section latitude 47°59′13″ North, longitude FOR FURTHER INFORMATION CONTACT: Mr. 202 or 205 of the Unfunded Mandates 122°13′12″ West (Point 12); thence to Frank Torbett, Headquarters Regulatory Act. We have also found under Section latitude 47°59′20″ North, longitude Branch, Washington, DC at (202) 761– 203 of the Act, that small Governments 122°13′08″ West (Point 13); thence to 4618, or Mr. Jack Kennedy, Corps of will not be significantly and uniquely latitude 47°59′20″ North, longitude Engineers, Seattle District, Regulatory affected by this rulemaking. 122°13′02.5″ West (Point 14), a point Branch, at (206) 764–6907. E. Submission to Congress and the upon the Naval Station’s shore in the SUPPLEMENTARY INFORMATION: Pursuant General Accounting Office northeast corner of East Waterway. to its authorities in Section 7 of the (b) The regulation. (1) All persons and Rivers and Harbors Act of 1917 (40 Stat. Pursuant to Section 801(a)(1)(A) of the vessels are prohibited from entering the 266; 33 U.S.C. 1) and Chapter XIX, of Administrative Procedure Act, as waters within the restricted area for any the Army Appropriations Act of 1919 amended by the Small Business reason without prior written permission (40 Stat. 892; 33 U.S.C. 3) the Corps is Regulatory Enforcement Fairness Act of from the Commanding Officer of the amending the restricted area regulations 1996, the Army has submitted a report Naval Station Everett. in 33 CFR part 334 by adding a new containing this Rule to the U.S. Senate, (2) Mooring, anchoring, fishing and/or section 334.1215 which establishes a the U.S. House of Representatives, and recreational boating shall not be allowed restricted area in waters adjacent to the Comptroller General of the General within the restricted area without prior Naval Station Everett at Everett, Accounting Office. This Rule is not a written permission from the Washington. major Rule within the meaning of Commanding Officer, Naval Station Section 804(2) of the Administrative Everettt. Procedural Requirements Procedure Act, as amended. (c) Enforcement. The regulation in A. Review Under Executive Order 12866 List of Subjects in 33 CFR Part 334 this section, promulgated by the United States Army Corps of Engineers, shall be This rule is issued with respect to a Danger zones, Marine safety, enforced by the Commanding Officer, military function of the Defense Navigation (water), Restricted areas, Naval Station Everett and such agencies Department and the provisions of Waterways. and persons as he/she shall designate. Executive Order 12866 do not apply. For the reasons set out in the Dated: May 9, 2002. B. Review Under the Regulatory preamble, the Corps amends 33 CFR Karen Durham-Aguilera, Flexibility Act Part 334 as follows: Acting Chief, Operations Division, Directorate This rule has been reviewed under the PART 334–DANGER ZONE AND of Civil Works. Regulatory Flexibility Act (Public Law RESTRICTED AREA REGULATIONS [FR Doc. 02–13061 Filed 5–23–02; 8:45 am] 96–354) which requires the preparation BILLING CODE 3710–92–P of a regulatory flexibility analysis for 1. The authority citation for Part 334 any regulation that will have a continues to read as follows: significant economic impact on a Authority: 40 Stat. 266; (33 U.S.C. 1) and ENVIRONMENTAL PROTECTION 40 Stat. 892; (33 U.S.C. 3) substantial number of small entities AGENCY (i.e., small businesses and small 2. Add § 334.1215 to read as follows: governments). The Corps expects that 40 CFR Part 180 the economic impact of this restricted § 334.1215 Port Gardner, Everett Naval area would have practically no impact Base, Naval Restricted Area, Everett, [OPP–2002–0021; FRL–6834–2] Washington. on the public, no anticipated Pesticides; Tolerance Exemptions for (a) The area. The waters of Port navigational hazard or interference with Polymers existing waterway traffic and Gardner and East Waterway accordingly, certifies that this proposal surrounding Naval Station Everett AGENCY: Environmental Protection will have no significant economic beginning at Point 1, a point near the Agency (EPA). impact on small entities. northwest corner of Naval Station ACTION: Direct final rule. Everett at latitude 47°59′40″ North, C. Review Under the National longitude 122°13′23.5″ West and thence SUMMARY: EPA is taking direct final rule Environmental Policy Act to latitude 47°59′40″ North, longitude action to add a new section which lists The Seattle District has prepared an 122°13′30″ West (Point 2); thence to the pesticide chemicals that are exempt Environmental Assessment (EA) for this latitude 47°59′20″ North, longitude from the requirement of a tolerance

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because they meet the criteria you and others in determining whether EPA also encourages you to submit your established by the Agency to identify or not this action might apply to certain comments electronically, if at all certain polymers that are of low risk. entities. If you have questions regarding possible, which will facilitate timely This section contains those polymers the applicability of this action to a receipt by the Agency and avoid whose tolerance exemptions were particular entity, consult the person potential delays associated with the established post-Food Quality listed under FOR FURTHER INFORMATION processing of government mail. Protection Act (FQPA) of 1996 and are CONTACT. 1. By mail. Submit your comments to: based on the polymer’s meeting the B. How Can I Get Additional Public Information and Records criteria described in 40 CFR 723.250. Information, Including Copies of this Integrity Branch (PIRIB), Information The Agency is acting on its own Document and Other Related Resources and Services Division initiative. Documents? (7502C), Office of Pesticide Programs (OPP), Environmental Protection DATES: This direct final rule is effective 1. Electronically. You may obtain on September 23, 2002, without further Agency, 1200 Pennsylvania Ave., NW., electronic copies of this document, and Washington, DC 20460. notice, unless EPA receives a relevant certain other related documents that 2. In person or by courier. Deliver adverse comment by July 23, 2002. If might be available electronically, from your comments to: Public Information EPA receives a relevant adverse the EPA Internet Home Page at http:// and Records Integrity Branch (PIRIB), comment, EPA will publish a timely www.epa.gov/. To access this Information Resources and Services withdrawal in the Federal Register document, on the Home Page select Division (7502C), Office of Pesticide informing the public that this direct ‘‘Laws and Regulations,’’ ‘‘Regulations Programs (OPP), Environmental final rule will not take effect. and Proposed Rules,’’ and then look up Protection Agency, Rm. 119, Crystal ADDRESSES: Comments may be the entry for this document under the Mall #2, 1921 Jefferson Davis Hwy., submitted by mail, electronically, or in ‘‘Federal Register—Environmental person. Please follow the detailed Documents.’’ You can also go directly to Arlington, VA. The PIRIB is open from instructions for each method as the Federal Register listings at http:// 8:30 a.m. to 4 p.m., Monday through provided in Unit I. of the www.epa.gov/fedrgstr/. A frequently Friday, excluding legal holidays. The SUPPLEMENTARY INFORMATION. It is updated electronic version of 40 CFR PIRIB telephone number is (703) 305– imperative that you identify docket ID part 180 is available at http:// 5805. number OPP–2002–0021 in the subject www.access.gpo.gov/nara/cfr/ 3. Electronically. You may submit line on the first page of your response. cfrhtml_00/Title_40/40cfr180_00.html, a your comments electronically by e-mail FOR FURTHER INFORMATION CONTACT: beta site currently under development. to: [email protected], or you can Kathryn Boyle, Registration Division 2. In person. The Agency has submit a computer disk as described (7505C), Office of Pesticide Programs, established an official record for this above. Do not submit any information Environmental Protection Agency, 1200 action under docket ID number OPP– electronically that you consider to be Pennsylvania Ave., NW., Washington, 2002–0021. The official record consists CBI. Avoid the use of special characters DC 20460; telephone number: (703) of the documents specifically referenced and any form of encryption. Electronic 305–6304; fax number: (703) 305–0599; in this action, any public comments submissions will be accepted in e-mail address: [email protected]. received during an applicable comment WordPerfect 6.1/8.0 or ASCII file format. All comments in electronic form SUPPLEMENTARY INFORMATION: period, and other information related to this action, including any information must be identified by docket ID number I. General Information claimed as Confidential Business OPP–2002–0021. Electronic comments may also be filed online at many Federal A. Does this Action Apply to Me? Information (CBI). This official record includes the documents that are Depository Libraries. You may be potentially affected by physically located in the docket, as well this action if you are an agricultural D. How Should I Handle CBI that I Want as the documents that are referenced in to Submit to the Agency? producer, food manufacturer, pesticide those documents. The public version of manufacturer, or antimicrobial pesticide the official record does not include any Do not submit any information manufacturer. Potentially affected information claimed as CBI. The public electronically that you consider to be categories and entities may include, but version of the official record, which CBI. You may claim information that are not limited to: includes printed, paper versions of any you submit to EPA in response to this electronic comments submitted during document as CBI by marking any part or Cat- NAICS Examples of poten- all of that information as CBI. egories codes tially affected entities an applicable comment period, is available for inspection in the Public Information so marked will not be Industry 111 Crop production Information and Records Integrity disclosed except in accordance with 112 Animal production Branch (PIRIB), Rm. 119, Crystal Mall procedures set forth in 40 CFR part 2. 311 Food manufacturing #2, 1921 Jefferson Davis Hwy., In addition to one complete version of 32532 Pesticide manufac- Arlington, VA, from 8:30 a.m. to 4 p.m., the comment that includes any 32561 turing Monday through Friday, excluding legal information claimed as CBI, a copy of Antimicrobial pes- holidays. The PIRIB telephone number the comment that does not contain the ticides is (703) 305–5805. information claimed as CBI must be submitted for inclusion in the public This listing is not intended to be C. How and to Whom Do I Submit version of the official record. exhaustive, but rather provides a guide Comments? Information not marked confidential for readers regarding entities likely to be You may submit comments through will be included in the public version affected by this action. Other types of the mail, in person, or electronically. To of the official record without prior entities not listed in this table could ensure proper receipt by EPA, it is notice. If you have any questions about also be affected. The North American imperative that you identify docket ID CBI or the procedures for claiming CBI, Industrial Classification System number OPP–2002–0021 in the subject please consult the person listed under (NAICS) codes are provided to assist line on the first page of your response. FOR FURTHER INFORMATION CONTACT.

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E. What Should I Consider as I Prepare residues that might lawfully be present the use of these criteria for approving My Comments for EPA? in food or feed. certain polymers, defining appropriate This direct final rule is effective on limitations or use patterns is You may find the following September 23, 2002, without further unnecessary. All polymers approved suggestions helpful for preparing your notice, unless EPA receives a relevant using these criteria can be used as an comments: adverse comment by July 23, 2002. If inert ingredient in any pesticide 1. Explain your views as clearly as however, EPA receives a relevant chemical product, including possible. adverse comment during the comment antimicrobial pesticide products, 2. Describe any assumptions that you period, then EPA will publish a timely provided that such use is in accordance used. withdrawal in the Federal Register with good agricultural or manufacturing 3. Provide copies of any technical informing the public that the direct final practices. In fact, creation of the new information and/or data you used that rule will not take effect. EPA will also section will streamline the tolerance support your views. publish a proposed rulemaking in a exemptions in 40 CFR part 180 since 4. If you estimate potential burden or future edition of the Federal Register. low-risk polymers need only be listed costs, explain how you arrived at the EPA will address the comments on the once, instead of being separately listed estimate that you provide. direct final rule as part of that proposed in multiple sections. 5. Provide specific examples to rulemaking. illustrate your concerns. V. Regulatory Assessment 6. Offer alternative ways to improve III. What Action is the Agency Taking? Requirements the direct final rule. EPA is establishing a new § 180.960 to EPA is taking direct final action to 7. Make sure to submit your contain exemptions from the add a new section to part 180, subpart comments by the deadline in this requirement of a tolerance for polymers D which lists the pesticide chemicals document. that under reasonably foreseeable that are polymers approved for use in 8. To ensure proper receipt by EPA, circumstances will pose no appreciable pesticide products using the criteria in be sure to identify the docket ID number risks to human health. The Agency has 40 CFR 723.250 that identify a low-risk assigned to this action in the subject established a set of criteria to identify polymer. This section contains those line on the first page of your response. categories of polymers that should polymers whose tolerance exemptions You may also provide the name, date, present low or no risk. The definition of were established post-FQPA based on and Federal Register citation. a polymer is given in 40 CFR 723.250(b). the criteria described in 40 CFR 723.250 The criteria for molecular weight (MW) . Since this direct final rule does not II. Authority and oligomeric material are specified in impose any new requirements, it is not A. What is the Agency’s Authority for 40 CFR 723.250(e). The following subject to review by the Office of Taking this Action? exclusion criteria for identifying these Management and Budget (OMB) under low-risk polymers are described in 40 Executive Order 12866, entitled This direct final rule is issued CFR 723.250(d). Regulatory Planning and Review (58 FR pursuant to section 408(e) of the Federal 1. The polymer is not a cationic 51735, October 4, 1993), Executive Food, Drug, and Comestic Act (FFDCA), polymer nor is it reasonably anticipated Order 13045, entitled Protection of as amended by FQPA (21 U.S.C. to become a cationic polymer in a Children from Environmental Health 346a(e)). Section 408 of FFDCA natural aquatic environment. Risks and Safety Risks (62 FR 19885, authorizes the establishment of 2. The polymer does contain as an April 23, 1997), or Executive Order tolerances, exemptions from the integral part of its composition the 13211, entitled Actions Concerning requirement of a tolerance, atomic elements carbon, hydrogen, and Regulations That Significantly Affect modifications in tolerances, and oxygen. Energy Supply, Distribution, or Use (66 revocation of tolerances for residues of 3. The polymer does not contain as an FR 28355, May 22, 2001). pesticide chemicals in or on raw integral part of its composition, except This direct final rule directly agricultural commodities and processed as impurities, any element other than regulates food processors, food foods. Without a tolerance or tolerance those listed in 40 CFR 723.250(d)(2)(ii). handlers, and food retailers, but does exemption, food containing pesticide 4. The polymer is neither designed not affect States, local, or Tribal residues is considered to be unsafe and nor can it be reasonably anticipated to governments directly. This action does therefore ‘‘adulterated’’ under section substantially degrade, decompose, or not alter the relationships or 402(a) of FFDCA. If food containing depolymerize. distribution of power and pesticide residues is found to be 5. The polymer is manufactured or responsibilities established by Congress adulterated, the food may not be imported from monomers and/or in the preemption provisions of FFDCA distributed in interstate commerce (21 reactants that are already included on section 408(n)(4). This action will not U.S.C. 331(a) and 342 (a)). the Toxic Substances Control Act have substantial direct effects on State (TSCA) Chemical Substance Inventory or tribal governments, on the B. Why is EPA Issuing this as a Direct relationship between the Federal Final Rule? or manufactured under an applicable TSCA section 5 exemption. government and States, or Indian tribes, EPA is issuing this action as a direct 6. The polymer is not a water or on the distribution of power and final rule without prior proposal absorbing polymer with a number responsibilities between the Federal because the Agency believes that this average MW greater than or equal to government and States or Indian tribes. action is not controversial and is not 10,000 daltons. As a result, this action does not require likely to result in any adverse any action under Executive Order comments, inasmuch as this action IV. Why are the Recodified Polymers 13132, entitled Federalism (64 FR simply shifts existing tolerance Expressed in a Different Manner in the 43255, August 10, 1999), or under exemptions for certain polymers from New Section? Executive Order 13175, entitled one paragraph of 40 CFR 180.1001 to a These polymers were approved for Consultation and Coordination with new section in 40 CFR part 180. It will use in pesticide products using criteria Indian Tribal Governments (65 FR not alter the quantity or nature of that identify low-risk polymers. Given 67249, November 6, 2000). Nor does it

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impose any enforceable duty or contain conclusion is as follows. This direct Pesticides and pests, Reporting and any unfunded mandate as described final rule does not impose any recordkeeping requirements. under Title II of the Unfunded Mandates requirements; rather, it simply Reform Act of 1995 (UMRA) (Public reorganizes requirements currently Dated: May 14, 2002. Law 104–4). existing in EPA regulations. No existing Marcia E. Mulkey, Nor does it require special tolerance exemptions are lost by the Director, Office of Pesticide Programs. considerations under Executive Order creation of the new section. Therefore, 40 CFR chapter I is 12898, entitled Federal Actions to VI. Submission to Congress and the amended as follows: Address Environmental Justice in Comptroller General Minority Populations and Low-Income PART 180—[AMENDED] Populations (59 FR 7629, February 16, The Congressional Review Act, 5 1994); or Executive Order 12630, U.S.C. 801 et seq., as added by the Small 1. The authority citation for part 180 entitled Governmental Actions and Business Regulatory Enforcement continues to read as follows: Interference with Constitutionally Fairness Act of 1996, generally provides Authority: 21 U.S.C. 321(q), 346 (a) and Protected Property Rights (53 FR 8859, that before a rule may take effect, the 374. March 15, 1988). agency promulgating the rule must submit a rule report, which includes a 2. A new § 180.960 is added to This action does not involve any subpart D of part 180 to read as follows: technical standards that would require copy of the rule, to each House of the Agency consideration of voluntary Congress and to the Comptroller General § 180.960 Polymers; exemptions from the consensus standards pursuant to section of the United States. EPA will submit a requirement of a tolerance. 12(d) of the National Technology report containing this rule and other Residues resulting from the use of the Transfer and Advancement Act of 1995 required information to the U.S. Senate, following substances, that meet the (NTTAA), Public Law 104–113, section the U.S. House of Representatives, and definition of a polymer and the criteria 12(d) (15 U.S.C. 272 note). the Comptroller General of the United specified for defining a low-risk Under section 605(b) of the States prior to publication of this rule in polymer in 40 CFR 723.250, as an inert Regulatory Flexibility Act (RFA) (5 the Federal Register. This rule is not a ingredient in a pesticide chemical U.S.C. 601 et seq.), the Agency hereby ‘‘major rule’’ as defined by 5 U.S.C. formulation, including antimicrobial certifies that the creation of a new 804(2). pesticide chemical formulations, are § 180.960 will not have significant exempted from the requirement of a List of Subjects in 40 CFR Part 180 negative economic impact on a tolerance under FFDCA section 408, if substantial number of small entities. Environmental protection, such use is in accordance with good The rationale supporting this Administrative practice and procedure, agricultural or manufacturing practices.

Polymer CAS No.

Acrylic acid, styrene, a-methyl styrene copolymer, ammonium salt, minimum number average molecular weight (in amu), 89678–90–0 1,250

Acrylic acid terpolymer, partial sodium salt, minimum number average molecular weight (in amu), 2,400 151006–66–5

Acrylic polymers composed of one or more of the following monomers: Acrylic acid, methyl acrylate, ethyl acrylate, butyl ac- None rylate, hydroxyethyl acrylate, hydroxypropyl acrylate, hydroxybutyl acrylate, carboxyethyl acrylate, methacrylic acid, methyl methacrylate, ethyl methacrylate, butyl methacrylate, isobutyl methacrylate, hydroxyethyl methacrylate, hydroxypropyl methacrylate, hydroxybutyl methacrylate, lauryl methacrylate, and stearyl methacrylate; with none and/or one or more of the following monomers: Acrylamide, N-methyl acrylamide, N-octylacrylamide, maleic anhydride, maleic acid, monoethyl maleate, diethyl maleate, monooctyl maleate, dioctyl maleate; and their corresponding sodium potassium, ammonium, isopropylamine, triethylamine, monoethanolamine, and/or triethanolamine salts; the resulting polymer having a minimum number average molecular weight (in amu), 1,200

a-alkyl (C12–C15) - ω- hydroxypoly(oxypropylene)poly(oxyethylene)copolymers (where the poly(oxypropylene) content is 3– 68551–13–3 60 moles and the poly(oxyethylene) content is 5–80 moles), the resulting ethoxylated propoxylated (C12–C15) alcohols having a minimum molecular weight (in amu), 1,500

Butene, homopolymer minimum number average molecular weight (in amu), 1,330 9003–29–6

Butyl acrylate-vinyl acetate-acrylic acid copolymer, minimum number average molecular weight (in amu), 18,000 65405–40–5

Dimethylpolysiloxane minimum number average molecular weight (in amu), 6,800 63148–62–9

Dimethyl silicone polymer with silica, minimum number average molecular weight (in amu), 1,100,000 67762–90–7

1, 2-Ethanediamine, polymer with methyl oxirane and oxirane, minimum number average molecular weight (in amu), 1,100 26316–40–5

Hexamethyl disilizane, reaction product with silica, minimum number average molecular weight (in amu), 645,000 68909–20–6

12-Hydroxystearic acid-polyethylene glycol copolymer, minimum number average molecular weight (in amu), 3,690 70142–34–6

Maleic anhydride-diisobutylene copolymer, sodium salt, minimum number average molecular weight (in amu) 5,0007–18,000 37199–81–8

Maleic anhydride-methylstyrene copolymer sodium salt, minimum number average molecular weight (in amu), 15,000 60092–15–1

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Polymer CAS No.

Methacrylic acid-methyl methacrylate-polyethylene glycol methyl ether methacrylate copolymer, minimum number averge 100934–04–1 molecular weight (in amu), 3,700

Methacrylic copolymer, minimum number average molecular weight (in amu), 15,000 63150–03–8

Methyl methacrylate-methacrylic acid-monomethoxypolyethylene glycol methacrylate copolymer,) minimum number average 119724–54–8 molecular weight (in amu), 2,730

Oxirane, methyl-, polymer with oxirane, mono[2-(2-butoxyethoxy) ethyl] ether, minimum number average molecular weight 85637–75–8 (in amu), 2,500

Polyethylene glycol-polyisobutenyl anhydride-tall oil fatty acid copolymer, minimum number average molecular weight (in 68650–28–2 amu), 2,960

Polyoxyethylated sorbitol fatty acid esters; the sorbitol solution containing up to 15% water is reacted with 20–50 moles of None ethylene oxide and aliphatic alkanoic and/or alkenoic fatty acids C8 through C22 with minor amounts of associated fatty acids; the resulting polyoxyethylene sorbitol ester having a minimum molecular weight (in amu), 1,300

Polyvinyl chloride, minimum number average molecular weight (in amu), 29,000 9002–86–2

Polyvinyl acetate, copolymer with maleic anhydride, partially hydrolyzed, sodium salt, minimum number average molecular None weight (in amu), 53,000

Polyvinylpyrrolidone butylated polymer, minimum number average molecular weight (in amu), 9,500 26160–96–3

2-Propene-1-sulfonic acid sodium salt, polymer with ethenol and ethenyl acetate, number average molecular weight (in None amu) 6,000–12,000

2-Propenoic acid, polymer with 2-propenamide, sodium salt, minimum number average molecular weight (in amu), 18,000 25085–02–3

2-Propenoic acid, sodium salt, polymer with 2-propenamide, minimum number average molecular weight (in amu), 18,000 25987–30–8

Silane, dichloromethyl- reaction product with silica minimum number average molecular weight (in amu), 3,340,000 68611–44–9

Styrene, copolymers with acrylic acid and/or methacrylic acid, with none and/or one or more of the following monomers: None Acrylamidopropyl methyl sulfonic acid, methallyl sulfonic acid, 3-sulfopropyl acrylate, 3-sulfopropyl methacrylate, hydroxypropyl methacrylate, hydroxypropyl acrylate, hydroxyethyl methacrylate, and/or hydroxyethyl acrylate; and its so- dium, potassium, ammonium, monoethanolamine, and triethanolamine salts; the resulting polymer having a minimum number average molecular weight (in amu), 1,200

Styrene, 2-ethylhexyl acrylate, butyl acrylate copolymer, minimum number average molecular weight (in amu), 4,200 30795–23–4

Tetraethoxysilane, polymer with hexamethyldisiloxane, minimum number average molecular weight (in amu), 6,500 104133–09–7

Vinyl acetate polymer with none and/or one or more of the following monomers: Ethylene, propylene, N-methyl acrylamide, None acrylamide, monoethyl maleate, diethyl maleate, monooctyl maleate, dioctyl maleate, maleic anhydride, maleic acid, octyl acrylate, butyl acrylate, ethyl acrylate, methyl acrylate, acrylic acid, octyl methacrylate, butyl methacrylate, ethyl methacry- late, methyl methacrylate, methacrylic acid, carboxyethyl acrylate, and diallyl phthalate; and their corresponding sodium, potassium, ammonium, isopropylamine, triethylamine, monoethanolamine and/or triethanolamine salts; the resulting poly- mer having a minimum number average molecular weight (in amu), 1,200

Vinyl alcohol-vinyl acetate copolymer, benzaldehyde-o-sodium sulfonate condensate, minimum number average molecular None weight (in amu), 20,000

Vinyl pyrrolidone-acrylic acid copolymer, minimum number average molecular weight (in amu), 6,000 28062–44–4

§ 180.1001 [Amended] i. The table in paragraph (c) is 3. Section 180.1001 is amended as amended by removing the entries listed follows: below:

Inert ingredients Limits Uses

******* Acrylic acid, styrene, a-methyl styrene Copolymer, ...... Encapsulating agent, dispensers, resins, fibers and ammonium salt (CAS Reg. No. 89678–90–0), min- beads imum number average molecular weight (in amu) 1250. Acrylic acid terpolymer, partial sodium salt (CAS Reg...... Dispersant No. 151006–66–5), minimum number average mo- lecular weight (in amu) 2,400.

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Inert ingredients Limits Uses

Acrylic polymers composed of one or more of the fol- ...... Components of films, binders, carriers, adhesives, or lowing monomers: Acrylic acid, methyl acrylate, related adjuvants ethyl acrylate, butyl acrylate, hydroxyethyl acrylate, hydroxypropyl acrylate, hydroxybutyl acrylate, carboxyethyl acrylate, methacrylic acid, methyl methacrylate, ethyl methacrylate, butyl methacry- late, isobutyl methacrylate, hydroxyethyl methacry- late, hydroxypropyl methacrylate, hydroxybutyl methacrylate, lauryl methacrylate, and stearyl meth- acrylate; with none and/or one or more of the fol- lowing monomers: Acrylamide, N-methyl acrylamide, N-octylacrylamide, maleic anhydride, maleic acid, monoethyl maleate, diethyl maleate, monooctyl ma- leate, dioctyl maleate; and their corresponding so- dium, potassium, ammonium, isopropylamine, triethylamine, monoethanolamine,and/or triethanol- amine salts; the resulting polymer having a min- imum number average molecular weight (in amu) 1,200. ******* a-alkyl (C12–C15)-ω-hydroxypoly (oxypropylene)poly Not to exceed 20% of pesticide Surfactant (oxyethylene)copolymers (where the formulations poly(oxypropylene) content is 3–60 moles and the poly(oxyethylene) content is 5–80 moles), the result- ing ethoxylated propoxylated (C12-C15) alcohols hav- ing a minimum molecular weight (in amu) of 1,500, CAS Reg. No. 68551–13–3. ******* Butene, homopolymer minimum number average mo- ...... Sticker, surfactant and related adjuvant lecular weight (in amu) 1,330 (CAS Reg. No. 9003– 29–6). Butyl acrylate-vinyl acetate-acrylic acid copolymer ...... Surfactants, related adjuvants of surfactants (CAS Reg. No. 65405–40–5), minimum number av- erage molecular weight 18,000 daltons. ******* Dimethyl silicone polymer with silica, Minimum number ...... Moisture barrier, anti-caking agent, anti-settling agent, average molecular weight (in amu) 1,100,000 dal- thickening agent tons, CAS Reg. No. 67762–90–7. Dimethylpolysiloxane minimum number average mo- ...... Defoaming agent lecular weight (in amu) 6,800 (CAS Reg. No. 63148–62–9). ******* 1,2-Ethanediamine, polymer with methyl oxirane and ...... Surfactant, dispersing agent oxirane, 1,100 minimum number average molecular weight (in amu) (CAS Reg. No. 26316–40–5). ******* Hexamethyldisilizane, reaction product with silica, min- ...... Moisture barrier, anti-caking agent, anti-settling agent, imum number average molecular weight (in amu) thickening agent 645,000 daltons, CAS Reg. No. 68909–20–6. ******* 12-Hydroxystearic acid-polyethylene glycol copolymer ...... Surfactant, dispersing agent, suspending agent, re- (CAS Reg. No. 70142–34–6) minimum number av- lated adjuvant. erage molecular weight (in amu) 3,690. ******* Maleic anhydride- diisobutylene copolymer, sodium ...... Suspending agent and dispersing agent salt (CAS Reg. No. 37199–81–8), minimum number average molecular weight (in amu) 5,000–18,000. Maleic anhydride-a-methylstyrene copolymer sodium ...... Surfactant salt, minimum number average molecular weight (in amu) is 15,000 (CAS Reg. No. 60092–15–1). ******* Methacrylic acid-methyl methacrylate-polyethylene gly- ...... Surfactant col methyl ether methacrylate copolymer, minimum number average molecular weight (in amu) is 3,700 (CAS Reg. No. 100934–04–1). Methacrylic Copolymer (CAS Reg. No. 63150–03–8), ...... Inert minimum number average molecular weight (in amu) 15,000. ******* Methyl methacrylate-methacrylic acid- ...... Surfactant, dispersing agent, suspending agent, re- monomethoxypolyethylene glycol methacrylate co- lated adjuvant. polymer (CAS Reg. No. 119724–54–8) minium number average molecular weight (in amu) 2,730.

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Inert ingredients Limits Uses

******* Oxirane, methyl-, polymer with oxirane, mono[2-(2- 15% Max ...... Emulsifier, dispersant, Surfactant or related adjuvant butoxyethoxy) ethyl]ether CAS Reg. No. 85637–75– of surfactant. 8), minimum number average molecular weight (in .amu) 2,500. ******* Polyethylene glycol-polyisobutenyl anhydride-tall oil ...... Surfactant, dispersing agent, suspending agent, re- fatty acid copolymer (CAS Reg. No. 68650–28–2) lated adjuvant. minimum number average molecular weight (in amu) 2,960. ******* Polyoxyethylated sorbitol fatty acid esters; the sorbitol ...... Dispersants, emulsifiers, surfactants, related adju- solution containing up to 15% water is reacted with vants of surfactants. 20–50 moles of ethylene oxide and aliphatic alkanoic and/or alkenoic fatty acids C8 through C22 with minor amounts of associated fatty acids; the re- sulting polyoxyethylene sorbitol ester having a min- imum MW (in amu) of 1,300. ******* Polyvinyl acetate, copolymer with maleic anhydride, ...... Component of water soluble films partially hydrolyzed, sodium salt, minimum number average MW (in amu), 53,000. Polyvinyl chloride (CAS Reg. No. 9002–86–2), min- ...... Carrier imum number average molecular weight (in amu) 29,000. ******* Polyvinylpyrrolidone butylated polymer (CAS Reg. No...... Surfactants, related adjuvant of surfactants and bind- 26160–96–3), minimum number average molecular er weight (in amu) 9,500. ******* 2-Propene-1-sulfonic acid sodium salt, polymer with ...... Binding agent ethenol and ethenyl acetate, number average mo- lecular weight (in amu) 6,000–12,000. 2-Propenoic acid, polymer with 2-propenamide, so- ...... Carrier dium salt, minimum number average molecular weight (in amu), 18,000; CAS Reg. No. 25085–02–3. 2-Propenoic acid, sodium salt, polymer with 2- ...... Carrier propenamide, minium number average molecular weight (in amu), 18,000; CAS Reg. No. 25987–30–8. ******* Silane, dichloromethyl-, reaction product with silica ...... Moisture barrier, anti-caking agent, anti-settling agent, minimum number average molecular weight (in thickening agent amu) 3,340,000 daltons, CAS Reg. No. 68611–44–9. ******* Styrene, 2-ethylhexyl acrylate, butyl acrylate copoly- ...... Encapsulating agent, dispensers, resins, fibers and mer (CAS Reg. No. 30795–23–4), minimum number beads average molecular weight (in amu) 4,200. ******* Styrene, copolymers with acrylic acid and/or meth- Not to exceed 25% in formu- Carriers, adhesives, binders, suspending and dis- acrylic acid, with none and/or one or more of the lated product persing agents, related adjuvants in pesticide for- following monomers: acrylamidopropyl methyl sul- mulations fonic acid, methallyl sulfonic acid, 3-sulfopropyl ac- rylate, 3-sulfopropyl methacrylate, hydroxypropyl methacrylate, hydroxypropyl acrylate, hydroxyethyl methacrylate, and/or hydroxy-ethyl acrylate; and its sodium, potassium, ammonium, monoethanolamine, and triethanolamine salts; the resulting polymer hav- ing a minimum number average molecular weight (in amu) of 1,200. ******* Tetraethoxysilane, polymer with hexamethyldisiloxane, ...... Antifoam agent 6,500 minimum number average molecular weight (in amu) (CAS Reg. No. 104133–09–7).

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Inert ingredients Limits Uses

******* Vinyl acetate polymer with none and/or one or more of ...... Components of films, binders, carriers, adhesives, or the following monomers: ethylene, propylene, N- related adjuvants methyl acrylamide, acrylamide, monoethyl maleate, diethyl maleate, monooctyl maleate, dioctyl maleate, maleic anhydride, maleic acid, octyl acrylate, butyl acrylate, ethyl acrylate, methyl acrylate, acrylic acid, octyl methacrylate, butyl methacrylate, ethyl meth- acrylate, methyl methacrylate, methacrylic acid carboxyethyl acrylate, and diallyl phthalate; and their corresponding sodium, potassium, ammonium, isopropylamine, triethylamine, monoethanolamine and/or triethanolamine salts; the resulting polymer having a minium number average molecular weight (in amu) 1200.. Vinyl alcohol-vinyl acetate copolymer, benzaldehyde- ...... Water soluble resin o-sodium sulfonate condensate, minimum number average molecular weight (in amu) 20, 000. Vinyl pyrrolidone-acrylic acid copolymer (CAS Reg...... Adhesive, dispersion stabilizer and coating for sus- No. 28062–44–4), minimum number average molec- tained release granules ular weight (in amu) 6,000. *******

ii. The table in paragraph (e) is amended by removing the entries listed below:

Inert ingredients Limits Uses

******* Acrylic acid, styrene, a-methyl styrene copolymer, ...... Encapsulating agent, dispensers, res- ammonium salt (CAS Reg. No. 89678–90–0), ins, fibers and beads minimum number average molecular weight (in amu) 1250. Acrylic acid terpolymer, partial sodium salt (CAS ...... Dispersant Reg. No.151006–66–5), minimum number aver- age molecular weight (in amu) 2,400. Acrylic polymers composed of one or more of the ...... Components of films, binders, carriers, following monomers: Acrylic acid, methyl acry- adhesives, or related adjuvants late, ethyl acrylate, butyl acrylate, hydroxyethyl acrylate, hydroxypropyl acrylate, hydroxybutyl acrylate, carboxyethyl acrylate, methacrylic acid, methyl methacrylate, ethyl methacrylate, butyl methacrylate, isobutyl methacrylate, hydroxy- ethyl methacrylate, hydroxypropyl methacrylate, hydroxybutyl methacrylate, lauryl methacrylate, and stearyl methacrylate; with none and/or one or more of the following monomers: Acrylamide, N-methyl acrylamide, N-octylacrylamide, maleic anhydride, maleic acid, monoethyl maleate, dietyl maleate, monooctyl maleate, dioctyl male- ate; and their corresponding sodium, potassium, ammonium, isopropylamine, triethylamine, monoethanolamine, and/or triethanolamine salts; the resulting polymer having a minimum number average molecular weight (in amu) 1,200.. ******* a-alkyl (C12-C15)-ω-hydroxypoly Not to exceed 20% of pesticide formulations Surfactant (oxypropylene)poly (oxyethylene)copolymers (where the poly(oxypropylene) content is 3-60 moles and the poly(oxyethylene) content is 5-80 moles), the resulting ethoxylated propoxylated (C12-C15) alcohols having a minimum molecular weight (in amu) of 1,500, CAS Reg. No. 68551– 13–3. ******* Butene, homopolymer minimum number average ...... Sticker, surfactant and related adjuvant molecular weight (in amu) 1,330 (CAS Reg. No. 9003–29–6). Butyl acrylate-vinyl acetate-acrylic acid copolymer ...... Surfactants, related adjuvants or (CAS Reg. No. 65405–40–5), minimum number surfactants average molecular weight 18,000 daltons.

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Inert ingredients Limits Uses

******* Dimethyl silicone polymer with silica, Minimum ...... Moisture barrier, anti-caking agent, number average molecular weight (in amu) anti-settling agent, thickening agent 1,100,000 daltons, CAS Reg. No. 67762–90–7. ******* Hexamethyldisilizane, reaction product with silica, ...... Moisture barrier, anti-caking agent, Minimum number average molecular weight (in anti-settling agent, thickening agent amu) 645,000 daltons, CAS Reg. No. 68909– 20–6. ******* 12-Hydroxystearic acid-polyethylene glycol copoly- ...... Surfactant, dispersing agent, sus- mer) (CAS Reg. No. 70142–34–6) minimum pending agent, related adjuvant. number average molecular weight (in amu) 3,690. ******* Maleic anhydride-diisobutylene copolymer, sodium ...... Suspending agent and dispersing agent salt (CAS Reg. No. 37199–81–8), minimum number average molecular weight (in amu) 5,000–18,000. ******* Methacrylic Copolymer (CAS Reg. No. 63150–03– ...... Inert 8), minimum number average molecular weight (in amu) 15,000. ******* Methyl methacrylate-methacrylic acid- ...... Surfactant, dispersing agent, sus- monomethoxypolyethylene glycol methacrylate pending agent, related adjuvant. copolymer (CAS Reg. No.119724–54–8) minium number average molecular weight (in amu) 2,730. ******* Oxirane, methyl-, polymer with oxirane, mono[2-(2- 15% Max ...... Emulsifier, dispersant, Surfactant or re- butoxyethoxy) ethyl]ether CAS Reg. No. 85637– lated adjuvant of surfactant. 75–8), minimum number average molecular weight (in amu) 2,500. ******* Polyethylene glycol-polyisobutenyl anhydride-tall oil ...... Surfactant, dispersing agent, sus- fatty acid (CAS Reg. No. 68650–28–2) minimum pending agent, related adjuvant. number average molecular weight (in amu) 2,960. ******* Polyoxyethylated Sorbitol Fatty Acid Esters; the ...... Dispersants, emulsifiers, surfactants, sorbitol solution containing up to 15% water is related adjuvants of surfactants reacted with 20–50 moles of ethylene oxide and aliphatic alkanoic and/or alkenoic fatty acids C8 through C22 with minor amounts of associated fatty acids; the resulting polyoxyethylene sorbitol ester having a minimum molecular weight (in amu) of 1,300. ******* Polyvinylpyrrolidone butylated polymer (CAS Reg...... Surfactants, related adjuvant of No. 26160–96–3), minimum number-average surfactants and binder molecular weight (in amu) 9,500. ******* 2-Propene-1-sulfonic acid sodium salt, polymer ...... Binding agent with wthanol and ethenyl acetate, number aver- age molecular weight (in amu) 6,000–12,000. ******* Silane, dichloromethyl-, reaction product with silica, ...... Moisture barrier, anti-caking agent, Minimum number average molecular weight (in anti-settling agent, thickening agent amu) 3,340,000 daltons, CAS Reg. No. 68611– 44–9. ******* Styrene, 2-ethylhexyl acrylate, butyl acrylate co- ...... Encapsulating agent, dispensers, res- polymer (CAS Reg. No. 30795–23–4), minimum ins, fibers and beads number average molecular weight (in amu) 4200.

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Inert ingredients Limits Uses

Styrene, copolymers with acrylic acid and/or meth- Not to exceed 25% in formulated product Carriers, adhesives, binders, sus- acrylic acid, with none and/or one or more of the pending and dispersing agents, re- following monomers: acrylamidopropyl methyl lated adjuvants in pesticide formula- sulfonic acid, methallyl sulfonic acid, 3- tions. sulfopropyl acrylate, 3-sulfopropyl methacrylate, hydroxypropyl methacrylate, hydroxypropyl acry- late, hydroxyethyl methacrylate, and/or hydroxy- ethyl acrylate; and its sodium, potassium, am- monium, monoethanolamine, and triethanol- amine salts; the resulting polymer having a min- imum number average molecular weight (in amu) of 1,200. ******* Tetraethoxysilane, polymer with ...... Antifoam agent hexamethyldisiloxane, 6,500 minimum number average molecular weight (in amu) (CAS Reg. No. 104133–09–7). ******* Vinyl acetate polymer with none and/or one or ...... Components of films, binders, carriers, more of the following monomers: ethylene, pro- adhesives, or related adjuvants pylene, N-methyl acrylamide, acrylamide, monoethyl maleate, diethyl maleate, monooctyl maleate, dioctyl maleate, maleic anhydride, ma- leic acid, octyl acrylate, butyl acrylate, ethyl ac- rylate, methyl acrylate, acrylic acid, octyl meth- acrylate, butyl methacrylate, ethyl methacrylate, methyl methacrylate, methacrylic acid carboxyethyl acrylate, and diallyl phthalate; and their corresponding sodium, potassium, ammo- nium, isopropylamine, triethylamine, monoethanolamine and/or triethanolamine salts; the resulting polymer having a minium number average molecular weight (in amu) of 1200.. Vinyl alcohol-vinyl acetate copolymer, benz- ...... Water soluble resin aldehyde-o-sodium sulfonate condensate, min- imum number average molecular weight (in amu) 20,000. Vinyl pyrrolidone-acrylic, acid copolymer (CAS ...... Adhesive, dispersion stabilizer and Reg. No. 28062–44–4), minimum number aver- coating for sustained release gran- age molecular weight (in amu) 6,000. ules *******

[FR Doc. 02–12974 Filed 5–23–02; 8:45 am] ingredients. Development of the new ADDRESSES: Written objections and BILLING CODE 6560–50–S section will be accomplished over time hearing requests may be submitted by in a multi-step process. As the first step, mail, electronically, or in person. Please the existing tolerance exemptions for follow the detailed instructions for each ENVIRONMENTAL PROTECTION commonly consumed food method as provided in Unit III. of the AGENCY commodities, animal feed items, and SUPPLEMENTARY INFORMATION. To ensure edible fats and oils are recodified in the proper receipt by EPA, your objections 40 CFR Part 180 newly created section, albeit in a and hearing requests must identify [OPP–2002–0030; FRL–6834–8] different format. This new format docket ID number OPP–2002–0030 in provides greater clarification in defining the subject line on the first page of your RIN 2070–AC18 a minimal risk pesticide chemical as response. well as increasing the number of Pesticides; Tolerance Exemptions for FOR FURTHER INFORMATION CONTACT: substances that are currently considered Minimal Risk Active and Inert Kathryn Boyle, Registration Division to be minimal risk. Ingredients (7505C), Office of Pesticide Programs, With the creation of the new section, Environmental Protection Agency, 1200 AGENCY: Environmental Protection the existing tolerance exemptions (in Pennsylvania Ave., NW., Washington, Agency (EPA). other sections of the CFR) for these DC 20460; telephone number: (703) ACTION: Final rule. chemical substances are no longer 305–6304; fax number: (703) 305–0599; necessary. Therefore, this document e-mail address: [email protected]. SUMMARY: EPA is adding a new section revokes the tolerance exemptions for 40 SUPPLEMENTARY INFORMATION: which lists the pesticide chemicals that inert ingredients. The Agency is acting are exempted from the requirement of a on its own initiative. I. General Information tolerance based on the Agency’s DATES: This final rule is effective on A. Does this Action Apply to Me? determination that these chemicals are May 24, 2002. Objections and requests of ‘‘minimal risk.’’ The pesticide for hearings, identified by docket ID You may be potentially affected by chemicals listed in the new section number OPP–2002–0030, must be this action if you formulate or market include both active and inert received on or before July 23, 2002. pesticide products. Potentially affected

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categories and entities may include, but are not limited to:

Categories NAICS codes Examples of potentially affected entities

Industry 111 Crop production 112 Animal production 311 Food manufacturing 32532 Pesticide manufacturing

Producers 32561 Antimicrobial pesticides

This listing is not intended to be version of the official record, which The following 40 tolerance exhaustive, but rather provides a guide includes printed, paper versions of any exemptions are revoked: for readers regarding entities likely to be electronic comments submitted during 1. In 40 CFR 180.1001 (c): Almond affected by this action. Other types of an applicable comment period, is shells; apple pomace; citrus meal; cocoa entities not listed in this table could available for inspection in the Public shells; coconut oil; corn cobs; corn also be affected. The North American Information and Records Integrity meal; corn oil; cornstarch; corn syrup; Industrial Classification System Branch (PIRIB), Rm. 119, Crystal Mall cottonseed oil; dextrose; fish oil; grape (NAICS) codes are provided to assist #2, 1921 Jefferson Davis Hwy., pomace, dried; lard; lactose; molasses; you and others in determining whether Arlington, VA, from 8:30 a.m. to 4 p.m., oatmeal; oats; orange pomace; peanut or not this action might apply to certain Monday through Friday, excluding legal shells; rice bran; soybean oil; starch entities. If you have questions regarding holidays. The PIRIB telephone number (potato, tapioca, and wheat); and the applicability of this action to a is (703) 305–5805. sucrose. particular entity, consult the person II. Background 2. In 40 CFR 180.1001 (d): Cinnamon; listed under FOR FURTHER INFORMATION clove; coffee; corn; corn gluten meal, CONTACT. A. What Action is the Agency Taking? hydrolyzed; fenugreek; low erucic acid rapeseed oil, conforming to 21 CFR B. How Can I Get Additional In the Federal Register of January 15, 184.1555(c) (CAS Reg. No. none); oat Information, Including Copies of this 2002 (67 FR 1925) (FRL–6807–8), EPA hulls; wheat; and wheat flour. Document and Other Related issued a proposal pursuant to FFDCA 3. In 40 CFR 180.1001 (e): Corn syrup; Documents? section 408, 21 U.S.C. 346a, as amended by FQPA (Public Law 104–170) to dextrose, and sucrose. 1. Electronically. You may obtain amend 40 CFR by creating a new 4. Also, 40 CFR 180.1164 and electronic copies of this document, and paragraph (g) in 40 CFR 180.1001. This 180.1194 are revoked. certain other related documents that new paragraph would contain a listing However, only 39 can be counted might be available electronically, from of pesticide chemicals that are toward tolerance reassessment. the EPA Internet Home Page at http:// considered to be of minimal risk. No The Agency is placing expiration www.epa.gov/. To access this comments were received at the OPP dates on nine existing tolerance document, on the Home Page select docket in response to this proposed exemptions for known allergen- ‘‘Laws and Regulations,’’ ‘‘Regulations rule. However, the Agency did receive containing food commodities. At this and Proposed Rules,’’ and then look up three e-mails requesting additional time, the Agency cannot consolidate the the entry for this document under the information on the Agency’s proposed overlapping and duplicative tolerance ‘‘Federal Register—Environmental action. Discussions with these exemptions for allergen-containing Documents.’’ You can also go directly to individuals indicated support for the commodities that currently exist in 40 the Federal Register listings at http:// Agency’s proposal but some confusion CFR part 180. www.epa.gov/fedrgstr/. A frequently on language used to describe the These regulatory actions are part of updated electronic version of 40 CFR excluded substances. The confusion the tolerance reassessment requirements part 180 is available at http:// resulted from the placement of the of the FFDCA section 408(q), as www.access.gpo.gov/nara/cfr/ language describing the excluded amended by FQPA. By law, EPA is cfrhtml_00/Title_40/40cfr180_00.html, a substances, not the language itself. required to reassess 66% of the beta site currently under development. Based on the need for additional tolerances in existence on August 2, 2. In person. The Agency has clarification, the Agency moved this 1996, by August 2002, or about 6,400 established an official record for this language which provided greater clarity. tolerances. These regulatory actions, the action under docket ID number OPP– However, since publication of the reassessment of 39 tolerance 2002–0030. The official record consists proposed rule the Agency has exemptions, would be counted toward of the documents specifically referenced determined instead to create a new the August 2002 deadline. in this action, any public comments section, 40 CFR 180.950, to hold these B. What is the Agency’s Authority for received during an applicable comment tolerance exemptions. period, and other information related to Based on the reasons set forth in the Taking this Action? this action, including any information preamble to the proposed rule, EPA is This final rule is issued under FFDCA claimed as Confidential Business creating a new section in 40 CFR part section 408, 21 U.S.C. 346a, as amended Information (CBI). This official record 180, subpart D. All commonly by FQPA (Public Law 104–170). Section includes the documents that are consumed food items and all animal 408(e) of FFDCA authorizes EPA to physically located in the docket, as well feed items with the exception of the establish, modify, or revoke tolerances, as the documents that are referenced in exclusions discussed in this document, or exemptions from the requirement of those documents. The public version of are exempt from the requirement of a a tolerance for residues of pesticide the official record does not include any tolerance under the newly established chemicals in or on raw agricultural information claimed as CBI. The public 40 CFR 180.950. commodities and processed foods.

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III. Objections and Hearing Requests Waterside Mall, 401 M St., SW., request at many Federal Depository Under section 408(g) of the FFDCA, as Washington, DC 20460. The Office of Libraries. the Hearing Clerk is open from 8 a.m. amended by the FQPA, any person may B. When Will the Agency Grant a to 4 p.m., Monday through Friday, file an objection to any aspect of this Request for a Hearing? regulation and may also request a excluding legal holidays. The telephone number for the Office of the Hearing A request for a hearing will be granted hearing on those objections. The EPA if the Administrator determines that the procedural regulations which govern the Clerk is (202) 260–4865. 2. Tolerance fee payment. If you file material submitted shows the following: submission of objections and requests an objection or request a hearing, you There is a genuine and substantial issue for hearings appear in 40 CFR part 178. must also pay the fee prescribed by 40 of fact; there is a reasonable possibility Although the procedures in those CFR 180.33(i) or request a waiver of that that available evidence identified by the regulations require some modification to fee pursuant to 40 CFR 180.33(m). You requestor would, if established resolve reflect the amendments made to FFDCA must mail the fee to: EPA Headquarters one or more of such issues in favor of by the FQPA of 1996, EPA will continue Accounting Operations Branch, Office the requestor, taking into account to use those procedures, with of Pesticide Programs, P.O. Box uncontested claims or facts to the appropriate adjustments, until the 360277M, Pittsburgh, PA 15251. Please contrary; and resolution of the factual necessary modifications can be made. identify the fee submission by labeling issues(s) in the manner sought by the The new FFDCA section 408(g) provides it ‘‘Tolerance Petition Fees.’’ requestor would be adequate to justify essentially the same process for persons EPA is authorized to waive any fee the action requested (40 CFR 178.32). to ‘‘object’’ to a regulation for an requirement ‘‘when in the judgement of IV. Regulatory Assessment exemption from the requirement of a the Administrator such a waiver or Requirements tolerance issued by EPA under new refund is equitable and not contrary to FFDCA section 408(d), as was provided the purpose of this subsection.’’ For The Agency is acting on its own in the old FFDCA sections 408 and 409. additional information regarding the initiative under FFDCA section 408(e) However, the period for filing objections waiver of these fees, you may contact in revoking these 40 tolerance is now 60 days, rather than 30 days. James Tompkins by phone at (703) 305– exemptions and in establishing a new section in 40 CFR part 180, subpart D. A. What Do I Need to Do to File an 5697, by e-mail at Under Executive Order 12866 entitled, Objection or Request a Hearing? [email protected], or by mailing a request for information to Mr. Tompkins Regulatory Planning and Review (58 FR You must file your objection or at Registration Division (7505C), Office 51735, October 4, 1993), this action is request a hearing on this regulation in of Pesticide Programs, Environmental not a ‘‘significant regulatory action’’ accordance with the instructions Protection Agency, 1200 Pennsylvania subject to review by the Office of provided in this unit and in 40 CFR part Ave., NW., Washington, DC 20460. Management and Budget (OMB). 178. To ensure proper receipt by EPA, If you would like to request a waiver Because this final rule has been you must identify docket ID number of the tolerance objection fees, you must exempted from review under Executive OPP–2002–0030 in the subject line on mail your request for such a waiver to: Order 12866 due to its lack of the first page of your submission. All James Hollins, Information Resources significance, this final rule is not subject requests must be in writing, and must be and Services Division (7502C), Office of to Executive Order 13211, entitled mailed or delivered to the Hearing Clerk Pesticide Programs, Environmental Actions Concerning Regulations That on or before July 23, 2002. Protection Agency, 1200 Pennsylvania Significantly Affect Energy Supply, 1. Filing the request. Your objection Ave., NW., Washington, DC 20460. Distribution, or Use (66 FR 28355, May must specify the specific provisions in 3. Copies for the Docket. In addition 22, 2001). This final rule does not the regulation that you object to, and the to filing an objection or hearing request contain any information collections grounds for the objections (40 CFR with the Hearing Clerk as described in subject to OMB approval under the 178.25). If a hearing is requested, the Unit VI.A., you should also send a copy Paperwork Reduction Act (PRA), 44 objections must include a statement of of your request to the PIRIB for its U.S.C. 3501 et seq., or impose any the factual issues(s) on which a hearing inclusion in the official record that is enforceable duty or contain any is requested, the requestor’s contentions described in Unit I.B.2. Mail your unfunded mandate as described under on such issues, and a summary of any copies, identified by docket ID number Title II of the Unfunded Mandates evidence relied upon by the objector (40 OPP–2002–0030 to: Public Information Reform Act of 1995 (UMRA) (Public CFR 178.27). Information submitted in and Records Integrity Branch, Law 104–4). Nor does it require any connection with an objection or hearing Information Resources and Services special considerations under Executive request may be claimed confidential by Division (7502C), Office of Pesticide Order 12898, entitled Federal Actions to marking any part or all of that Programs, Environmental Protection Address Environmental Justice in information as CBI. Information so Agency, 1200 Pennsylvania Ave., NW., Minority Populations and Low-Income marked will not be disclosed except in Washington, DC 20460. In person or by Populations (59 FR 7629, February 16, accordance with procedures set forth in courier, bring a copy to the location of 1994); or OMB review or any Agency 40 CFR part 2. A copy of the the PIRIB described in Unit I.B.2. You action under Executive Order 13045, information that does not contain CBI may also send an electronic copy of entitled Protection of Children from must be submitted for inclusion in the your request via e-mail to: opp- Environmental Health Risks and Safety public record. Information not marked [email protected]. Please use an ASCII Risks (62 FR 19885, April 23, 1997). confidential may be disclosed publicly file format and avoid the use of special This action does not involve any by EPA without prior notice. characters and any form of encryption. technical standards that would require Mail your written request to: Office of Copies of electronic objections and Agency consideration of voluntary the Hearing Clerk (1900), Environmental hearing requests will also be accepted consensus standards pursuant to section Protection Agency, 1200 Pennsylvania on disks in WordPerfect 6.1/8.0 or 12(d) of the National Technology Ave., NW., Washington, DC 20460. You ASCII file format. Do not include any Transfer and Advancement Act of 1995 may also deliver your request to the CBI in your electronic copy. You may (NTTAA), Public Law 104–113, section Office of the Hearing Clerk in Rm. C400, also submit an electronic copy of your 12(d) (15 U.S.C. 272 note).

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This final rule simply establishes a This analysis was published on relationship between the Federal new section in 40 CFR part 180, subpart December 17, 1997 (62 FR 66020) (FRL– government and the Indian tribes, or on D that contains a list of minimal risk 5753–1), and was provided to the Chief the distribution of power and pesticide chemicals. Under section Counsel for Advocacy of the Small responsibilities between the Federal 605(b) of the Regulatory Flexibility Act Business Administration. Taking into government and Indian tribes.’’ This (RFA) (5 U.S.C. 601 et seq.), the Agency account this analysis, the available final rule does not have substantial hereby certifies that reorganizing 40 information concerning the pesticide direct effects on tribal governments, on CFR part 180 does not have significant chemicals listed in this final rule, the the relationship between the Federal negative economic impact on a transition time for the known allergen government and Indian tribes, or on the substantial number of small entities. containing commodities and distribution of power and Creating a new section does not have a considering that all of the revoked responsibilities between the Federal substantive effect and hence causes no tolerance exemptions are covered in the government and Indian tribes, as impact. established 40 CFR 180.950, the Agency specified in Executive Order 13175. This final rule places expiration dates certifies that this action does not have Thus, Executive Order 13175 does not on nine existing tolerance exemptions a significant economic impact on a apply to this final rule. for various known allergen-containing substantial number of small entities. V. Submission to Congress and the food commodities. Currently, the Furthermore, the Agency knows of no Comptroller General Agency’s regulatory approach as written extraordinary circumstances that exist in various CFR paragraphs and sections that change EPA’s previous analysis. The Congressional Review Act, 5 is inconsistent. This 3–year transition In addition, the Agency has U.S.C. 801 et seq., as added by the Small period will allow sufficient time to determined that this action does not Business Regulatory Enforcement examine the uses of these food have a substantial direct effect on States, Fairness Act of 1996, generally provides commodities, and discuss product re- on the relationship between the national that before a rule may take effect, the formulation with affected registrants. At government and the States, or on the Agency promulgating the rule must the completion of this process there will distribution of power and submit a rule report, which includes a be a single consistent approach for all responsibilities among the various copy of the rule, to each House of the food commodities used as pesticide levels of government, as specified in Congress and the Comptroller General of chemicals. the United States. EPA will submit a This final rule also revokes 40 Executive Order 13132, entitled Federalism (64 FR 43255, August 10, report containing this rule and other tolerance exemptions, including: required information to the U.S. Senate, 1. Revoking duplicative and 1999). Executive Order 13132 requires EPA to develop an accountable process the U.S. House of Representatives, and overlapping tolerance exemptions for the Comptroller General of the United commonly consumed (non-allergen) to ensure ‘‘meaningful and timely input by State and local officials in the States prior to publication of the rule in food commodities. the Federal Register. This rule is not a 2. Revoking and consolidating the development of regulatory policies that have federalism implications.’’ ‘‘Policies ‘‘major rule’’as defined by 5 U.S.C. existing tolerance exemptions for 804(2). animal feed items. that have federalism implications’’ is defined in the Executive order to Further the final rule allows the use of List of Subjects in 40 CFR Part 180 additional minimal risk animal feed include regulations that have items not previously exempted for use ‘‘substantial direct effects on the States, Environmental protection, in pesticide products, and establishes a on the relationship between the national Administrative practice and procedure, tolerance exemption for the use of government and the States, or on the Agricultural commodities, Pesticides edible oils derived from allergens since distribution of power and and pests, Reporting and recordkeeping the available information indicates that responsibilities among the various requirements. levels of government.’’ This final rule the use of these oils is not of concern. Dated: May 14, 2002. Pursuant to the RFA, the Agency directly regulates growers, food hereby certifies that establishing new processors, food handlers and food Marcia E. Mulkey, tolerance exemptions for edible oils retailers, not States. This action does not Director, Office of Pesticide Programs. derived from allergens and animal feed alter the relationships or distribution of Therefore, 40 CFR chapter I is items not previously exempted does not power and responsibilities established amended as follows: have significant negative economic by Congress in the preemption impact on a substantial number of small provisions of FFDCA section 408(n)(4). PART 180—[AMENDED] entities. By contrast, the amendments For these same reasons, the Agency has 1. The authority citation for part 180 and revisions that expand tolerance determined that this final rule does not continues to readas follows: exemptions are beneficial to the have any ‘‘tribal implications’’ as described in Executive Order 13175, Authority: 21 U.S.C. 321(q), 346(a) and regulated community by increasing the 374. number of minimal risk inert entitled Consultation and Coordination ingredients for use in pesticide with Indian Tribal Governments (65 FR 2. A new § 180.950 is added to read formulations. 67249, November 6, 2000). Executive as follows: Pursuant to the RFA, the Agency Order 13175, requires EPA to develop previously assessed whether revocations an accountable process to ensure § 180.950 Tolerance exemptions for of tolerances or tolerance exemptions ‘‘meaningful and timely input by tribal minimal risk active and inert ingredients. for pesticide products no longer in use officials in the development of Unless specifically excluded, residues in the United States might significantly regulatory policies that have tribal resulting from the use of the following impact a substantial number of small implications.’’ ‘‘Policies that have tribal substances as either an inert or an active entities and concluded that, as a general implications’’ is defined in the ingredient in a pesticide chemical matter, these actions do not impose a Executive order to include regulations formulation, including antimicrobial significant economic impact on a that have ‘‘substantial direct effects on pesticide chemicals, are exempted from substantial number of small entities. one or more Indian tribes, on the the requirement of a tolerance under

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FFDCA section 408, if such use is in milk, soybeans, eggs, fish, crustacea, 3. Section 180.1001 is amended as accordance with good agricultural or and wheat. Meat meal is an animal feed follows: manufacturing practices. composed of dried animal fat and (a) In the table in paragraph (c) (a) Commonly consumed food protein that has been sterilized. Other remove the entries for: Almond shells; commodities. Commonly consumed than meat meal, the term animal feed apple pomace; citrus meal; cocoa shells; food commodities means foods that are item does not extend to any item coconut oil; corn cobs; corn meal; corn commonly consumed for their nutrient designed to be fed to animals that oil; cornstarch; corn syrup; cottonseed properties. The term commonly contains, to any extent, components of oil; dextrose; fish oil; grape pomace, consumed food commodities shall only animals. Included within the term dried; lard; lactose; molasses; oatmeal; apply to food commodities (whether a animal feed items are: oats; orange pomace; peanut shells; rice raw agricultural commodity or a (1) The hulls and shells of the bran; soybean oil; starch (potato, processed commodity) in the form the commodities specified in paragraph tapioca, and wheat); and sucrose. commodity is sold or distributed to the (a)(2)(ii) of this section, and cocoa public for consumption. beans. (b) In the table in paragraph (d) (1) Included within the term (2) Bird feed such as canary seed. remove the entries for: Cinnamon; clove; commonly consumed food commodities (3) Any feed component of a coffee; corn; corn gluten meal, are: medicated feed meeting the definition of hydrolyzed; fenugreek; low erucic acid (i) Sugars such as sucrose, lactose, an animal feed item. rapeseed oil, conforming to 21 CFR dextrose and fructose, and invert sugar (c) Edible fats and oils. Edible fats and 184.1555(c) (CAS Reg. No. None); oat and syrup. oils means all edible (food or feed) fats hulls; wheat; and wheat flour. (ii) Spices such as cinnamon, cloves, and oils, derived from either plants or (c) In the table in paragraph (e) and red pepper. animals, whether or not commonly remove the entries for: Corn syrup; (iii) Herbs such as basil, anise, or consumed, including products derived dextrose, and sucrose. fenugreek. (2) Excluded from the term commonly from hydrogenating (food or feed) oils, 4. Section 180.1001 is further consumed food commodities are: or liquefying (food or feed) fats. amended by: (i) Any food commodity that is (1) Included within the term edible fats and oils are oils (such as soybean (a) Revising the following entries in adulterated under 21 U.S.C. 342. the tables to paragraphs (c), (d), and (e) (ii) Both the raw and processed forms oil) that are derived from the and of peanuts, tree nuts, milk, soybeans, commodities specified in paragraph eggs, fish, crustacea, and wheat. (a)(2)(ii) of this section when such oils (b) Adding the entry ‘‘wheat, (iii) Alcoholic beverages. are highly refined via a solvent including flour, bran, and starch’’ to the (iv) Dietary supplements. extraction procedure. table in paragraph (c). (b) Animal feed items. Animal feed (2) Excluded from the term edible fats items means meat meal and all items and oils are plant oils used in the § 180.1001 Exemptions from the requirement of a tolerance. derived from field crops that are fed to pesticide chemical formulation livestock excluding both the raw and specifically to impart their characteristic * * * * * processed forms of peanuts, tree nuts, fragrance and/or flavoring. (c)***

Inert ingredients Limits Uses

******* Casein ...... Expires May 24, 2005...... Surfactant, emulsifier, wetting agent ******* Fish meal ...... Expires May 24, 2005...... Solid diluent, carrier ******* Soy protein, isolated ...... Expires May 24, 2005 ...... Adhesive Soybean flour ...... Expires May 24, 2005...... Surfactant ******* Wheat, including flour, bran, and starch ...... Expires May 24, 2005...... Solid diluent carrier, attractant *******

(d)***

Inert ingredients Limits Uses

******* Sodium caseinate ...... Expires May 24, 2005...... Suspending agent and binder *******

(e)***

Inert ingredients Limits Uses

******* Soy protein, isolated ...... Expires May 24, 2005...... Adhesive ******* Wheat shorts ...... Expires May 24, 2005...... Solid diluent *******

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5. Section 180.1071 is revised to read Department of Health and Human In November 2001, the Secretary of as follows: Services, Attention: CMS–3088–FC, P.O. the Department of Health and Human Box 8010, Baltimore, MD 21244–8010. Services (HHS) launched a quality § 180.1071 Egg solids (whole); time-limited Please allow sufficient time for mailed initiative to provide Medicare and exemption from the requirement of a tolerance. comments to be received timely in the Medicaid beneficiaries and their event of delivery delays. families with easy to understand, A time-limited tolerance exemption If you prefer, you may deliver (by comparative information for selecting expiring May 24, 2005, is established for hand or courier) your written comments quality sources of healthcare such as residues of whole egg solids (of at least (one original and three copies) to one of nursing homes and hospitals. The peer feed grade quality) when used as an the following addresses: review organizations will be animal repellent in or on almonds and Room 445–G, Hubert H. Humphrey instrumental in promoting this applied to the growing crop in Building, 200 Independence Avenue, initiative. In accordance with the accordance with good agricultural SW., Washington, DC 20201, or Room Secretary’s quality initiative to provide practices. C5–16–03, 7500 Security Boulevard, Medicare and Medicaid beneficiaries § 180.1164 [Removed] Baltimore, MD 21244–1850. and their families with user friendly (Because access to the interior of the quality information, we are changing the 6. Section 180.1164 is removed. HHH Building is not readily available to name of peer review organizations to § 180.1194 [Removed] persons without Federal Government quality improvement organizations to identification, commenters are better reflect their responsibilities. The 7. Section 180.1194 is removed. encouraged to leave their comments in definition and function of these [FR Doc. 02–12973 Filed 5–23–02; 8:45 am] the CMS drop slots located in the main organizations will remain the same. BILLING CODE 6560–50–S lobby of the building. A stamp-in clock Therefore, we are revising all references is available for commenters wishing to to ‘‘peer review organization’’ and retain a proof of filing by stamping in ‘‘PRO’’ in chapters I, IV, and V of title DEPARTMENT OF HEALTH AND and retaining an extra copy of the 42 of the Code of Federal Regulations HUMAN SERVICES comments being filed.) (CFR). Comments mailed to the addresses 42 CFR Chapter I indicated as appropriate for hand or II. Provisions of the Final Rule with courier delivery may be delayed and Comment Period Centers for Medicare & Medicaid could be considered late. In 42 CFR chapters I, IV, and V we are Services For information on viewing public revising all references to— comments, see the beginning of the • ‘‘Peer review organization’’ to read 42 CFR Chapters IV and V SUPPLEMENTARY INFORMATION section. ‘‘quality improvement organization’’; • ‘‘Peer review organizations’’ to read [CMS–3088–FC] FOR FURTHER INFORMATION CONTACT: Valerie Mattison-Brown, (410) 786– ‘‘quality improvement organizations’’; • RIN 0938–AL38 5958. ‘‘PRO’’ to read ‘‘QIO’’; • ‘‘PRO’s’’ to read ‘‘QIO’s’’; and Office of Inspector General—Health SUPPLEMENTARY INFORMATION: • ‘‘PROs’’ to read ‘‘QIOs’’. Care; Medicare and Medicaid Inspection of Public Comments In addition, we are making the Programs; Peer Review Organizations: following conforming changes in Name and Other Changes—Technical Comments received timely will be § 400.200 (General definitions): Amendments available for public inspection as they • Removing the definition of ‘‘peer are received, generally beginning review organization’’; AGENCY: Centers for Medicare & approximately 3 weeks after publication • Removing the definition of ‘‘PRO’’; Medicaid Services (CMS), HHS. of a document, at the headquarters of • Adding the definition of ‘‘quality ACTION: Final rule with comment period. the Centers for Medicare & Medicaid improvement organization’’; and Services, 7500 Security Boulevard, • Adding the definition of ‘‘QIO’’. SUMMARY: In accordance with the Baltimore, Maryland 21244–1850, Secretary’s announcement of his quality Monday through Friday from 8:30 a.m. III. Response to Comments initiative, this technical regulation to 4 p.m. To schedule an appointment Because of the large number of items revises all references to ‘‘peer review to view public comments, call (410) of correspondence we normally receive organization’’ and ‘‘PRO’’ in chapters I, 786–9994. on Federal Register documents IV, and V of title 42 of the Code of published for comment, we are not able I. Background Federal Regulations. This regulation to acknowledge or respond to them also makes conforming changes to the Currently, the Social Security Act individually. We will consider all general definitions section. uses the term ‘‘utilization and quality comments we receive by the date and DATES: Effective date: May 24, 2002. control peer review organizations’’ to times specified in the DATES section of Comment date: Comments will be describe those entities which contract this preamble, and, when we proceed considered if we receive them no later with CMS for the performance of the with a subsequent document, we will than 5 p.m. on July 23, 2002, at the functions prescribed by title XI of the respond to the comments in the appropriate address, as provided below. Social Security Act. The CMS preamble to that document. ADDRESSES: In commenting, please refer regulations at 42 CFR 400.200, currently to file code CMS–3088–FC. Because of define a ‘‘peer review organization as an IV. Waiver of Proposed Rulemaking staff and resource limitations, we cannot organization that has a contract with We ordinarily publish a notice of accept comments by facsimile (FAX) CMS, under part B of title XI of the proposed rulemaking in the Federal transmission. Mail written comments Social Security Act, to perform Register to provide a period for public (one original and three copies) to the utilization and quality control review of comment before the provisions of a rule following address ONLY: Centers for the health care furnished, or to be such as this take effect. We note that Medicare & Medicaid Services, furnished, to Medicare beneficiaries.’’ such a notice is not required when

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applied to rules of agency organization, small entities include small businesses, List of Subjects in 42 CFR Part 400 procedure, or practice. As this rule nonprofit organizations, and merely reflects the nomenclature change governmental agencies. Most hospitals Grant programs-health, Health of an organization that contracts with and most other providers and suppliers facilities, Health maintenance the agency, no notice is required. We are small entities, either by nonprofit organizations (HMOs), Medicaid, can also waive this procedure if we find status or by having revenues of $5 Medicare, Reporting and recordkeeping good cause that a notice and comment million to $25 million or less annually requirements. procedure is impracticable, (see 65 FR 69432). Individuals and For the reasons set forth in the unnecessary, or contrary to the public States are not included in the definition preamble, the Centers for Medicare & interest and incorporate a statement of of a small entity. We generally prepare Medicaid Services amends 42 CFR the finding and its reasons in the rule a regulatory flexibility analysis that is chapters I, IV, and V to read as follows: issued. We believe it is unnecessary to consistent with the RFA unless we undertake notice and comment certify that a rule will not have a 1. In 42 CFR chapters I, IV, and V rulemaking as the changes made by this significant impact on a substantial revise all references to ‘‘Peer review regulation are technical in nature and number of small entities. We have not organization’’ to read ‘‘Quality update certain existing regulations prepared an analysis for the RFA improvement organization’’; revise all without substantive change. There is because we have determined, and references to ‘‘Peer review also no impact on program costs. certify, that this final rule with organizations’’ to read ‘‘Quality Therefore, for good cause, we waive comment period would have no improvement organizations’’; revise all prior notice and comment procedures. significant economic impact on small references to ‘‘PRO’’ to read ‘‘QIO’’; As indicated previously, we are, entities. revise all references to ‘‘PRO’s’’ to read however, providing a 60-day comment In addition, section 1102(b) of the Act ‘‘QIO’s’’; and revise all references to period for public comment. requires us to prepare a regulatory ‘‘PROs’’ to read ‘‘QIOs’’. impact analysis if a rule may have a V. Collection of Information 2. The authority citation for part 400 significant impact on the operations of continues to read as follows: Requirements a substantial number of small rural This document does not impose hospitals. This analysis must conform to Authority: Secs 1102 and 1871 of the information collection and the provisions of section 604 of the Social Security Act (42 U.S.C. 1302 and 1395hh) and 44 U.S.C. Chapter 35. recordkeeping requirements. RFA. For purposes of section 1102 (b) of Consequently, it need not be reviewed the Act, we define a small rural hospital 3. In § 400.200, remove the definitions by the Office of Management and as a hospital that is located outside of of ‘‘Peer review organization’’ and Budget under the authority of the a Metropolitan Statistical Area and has ‘‘PRO’’ and add the definitions of ‘‘QIO’’ Paperwork Reduction Act of 1995. fewer than 100 beds. We have not and ‘‘Quality improvement VI. Regulatory Impact Statement prepared an analysis for section 1102(b) organization’’ in alphabetical order to of the Act because we have determined read as follows: We have examined the impacts of this that this final rule with comment period notice as required by Executive Orders would not have a significant impact on § 400.200 General definitions. 12866 and 13132. We have also the operations of a substantial number * * * * * examined the impacts of this notice of small rural hospitals. QIO stands for quality improvement according to the criteria set forth in the Section 202 of the Unfunded Mandate organization. Unfunded Mandate Reform Act of 1995 Reform Act of 1995 also requires that (Public Law 104–4), the Regulatory agencies prepare an assessment of * * * * * Flexibility Act (RFA) (Public Law 96– anticipated costs and benefits before Quality improvement organization 354), and section 1102(b) of the Social issuing any rule that may result in an means an organization that has a Security Act. expenditure in any 1 year by State, contract with CMS, under part B of title Executive Order 12866 directs local, or tribal governments, in the XI of the Act, to perform utilization and agencies to assess all costs and benefits aggregate, or by the private sector, of quality control review of the health care of available regulatory alternatives and $110 million or more. We have furnished, or to be furnished, to when regulation is necessary, to select determined that this final rule with Medicare beneficiaries, formerly known regulatory approaches that maximize comment period would not result in as a peer review organization. net benefits (including potential such an expenditure. * * * * * economic, environmental, public health Executive Order 13132 establishes and safety effects, distributive impacts, certain requirements that an agency (Catalog of Federal Domestic Assistance and equity). A regulatory impact must meet when it promulgates a rule Program No. 93.778, Medical Assistance Program) analysis (RIA) must be prepared for that imposes substantial direct (Catalog of Federal Domestic Assistance rules that constitute significant compliance costs on State and local Program No. 93.773, Medicare—Hospital regulatory action, including rules that governments, preempts State law, or Insurance; and Program No. 93.774, have an economic effect of $100 million otherwise has Federalism implications. Medicare—Supplementary Medical or more annually (major rules). We have We have reviewed this proposed rule Insurance Program) reviewed this rule and have determined under the threshold criteria of Executive Dated: March 12, 2002. that it is not a major rule. Therefore, we Order 13132 and have determined that Thomas A. Scully, are not required to perform an it would not have a substantial direct Administrator, Centers for Medicare and assessment of the costs and benefits. We effect on the rights, roles, and Medicaid Services. have also determined that it does not responsibilities of States or local Approved: April 5, 2002. otherwise constitute significant governments. regulatory action. In accordance with the provisions of Tommy G. Thompson, The RFA requires agencies to analyze Executive Order 12866, this regulation Secretary. options for regulatory relief of small was not reviewed by the Office of [FR Doc. 02–12242 Filed 5–23–02; 8:45 am] businesses. For purposes of the RFA, Management and Budget. BILLING CODE 4120–01–P

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DEPARTMENT OF COMMERCE SUPPLEMENTARY INFORMATION: NMFS from the fishery. The Assistant manages the groundfish fishery in the Administrator for Fisheries, NOAA, National Oceanic and Atmospheric BSAI exclusive economic zone finds that the need to immediately Administration according to the Fishery Management implement this action to avoid Plan for the Groundfish Fishery of the exceeding the red king crab bycatch 50 CFR Part 679 Bering Sea and Aleutian Islands Area allowance for the trawl yellowfin sole (FMP) prepared by the North Pacific fishery category in Zone 1 of the BSAI [Docket No. 011218304–1304–01; I.D. Fishery Management Council under constitutes good cause to waive the 051702C] authority of the Magnuson-Stevens requirement to provide prior notice and Fishery Conservation and Management opportunity for public comment Fisheries of the Exclusive Economic Act. Regulations governing fishing by pursuant to the authority set forth at 5 Zone Off Alaska; Yellowfin by Vessels U.S. vessels in accordance with the FMP U.S.C. 553(b)(3)(B) and 50 CFR Using Trawl Gear in Bycatch Limitation appear at subpart H of 50 CFR part 600 679.20(b)(3)(iii)(A), as such procedures Zone 1 of the Bering Sea and Aleutian and 50 CFR part 679. Islands Management Area The 2002 red king crab bycatch would be unnecessary and contrary to allowance specified for Zone 1 of the the public interest. Similarly, the need AGENCY: National Marine Fisheries BSAI trawl yellowfin sole fishery to implement these measures in a timely Service (NMFS), National Oceanic and category, which is defined at fashion to avoid exceeding the red king Atmospheric Administration (NOAA), § 679.21(e)(3)(iv)(B)(1), is 16,664 crab bycatch allowance for the trawl Commerce. animals (67 FR 956, January 8, 2002). yellowfin sole fishery category in Zone ACTION: Closure. In accordance with § 679.21(e)(7)(ii), 1 of the BSAI constitutes good cause to the Administrator, Alaska Region, find that the effective date of this action SUMMARY: NMFS is closing directed NMFS (Regional Administrator), has cannot be delayed for 30 days. fishing for yellowfin sole by vessels determined that the 2002 bycatch Accordingly, under 5 U.S.C. 553(d), a using trawl gear in Bycatch Limitation allowance of red king crab specified for delay in the effective date is hereby Zone 1 (Zone 1) of the Bering Sea and the trawl yellowfin sole fishery in Zone waived. Aleutian Islands management area 1 of the BSAI has been reached. This action is required by 50 CFR (BSAI). This action is necessary to Consequently, the Regional 679.21 and is exempt from review under prevent exceeding the 2002 bycatch Administrator is closing directed fishing Executive Order 12866. allowance of red king crab specified for for yellowfin sole by vessels using trawl the trawl yellowfin sole fishery category gear in Zone 1 of the BSAI. Authority: 16 U.S.C. 1801 et seq. in Zone 1. Maximum retainable bycatch amounts Dated: May 21, 2002. may be found in the regulations at DATES: Effective 1200 hrs, Alaska local Virginia M. Fay, § 679.20(e) and (f). time (A.l.t.), May 21, 2002, until 2400 Acting Director, Office of Sustainable hrs, A.l.t., December 31, 2002. Classification Fisheries, National Marine Fisheries Service. FOR FURTHER INFORMATION CONTACT: This action responds to the best [FR Doc. 02–13118 Filed 5–21–02; 3:41 pm] Mary Furuness, 907–586–7228. available information recently obtained BILLING CODE 3510–22–S

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Proposed Rules Federal Register Vol. 67, No. 101

Friday, May 24, 2002

This section of the FEDERAL REGISTER Executive Order 12866 Information Collection and contains notices to the public of the proposed Recordkeeping Requirements issuance of rules and regulations. The This proposed rule has been purpose of these notices is to give interested determined to be not significant for This rule contains no additional persons an opportunity to participate in the purposes of Executive Order 12866 and, information collection or recordkeeping rule making prior to the adoption of the final therefore, has not been reviewed by the requirements under OMB control rules. Office of Management and Budget number 0572–0032 that would require approval under the Paperwork (OMB). Reduction Act of 1995 (44 U.S.C. DEPARTMENT OF AGRICULTURE Executive Order 12372 Chapter 35). Rural Utilities Service This rule is excluded from the scope Unfunded Mandates of Executive Order 12372, This proposed rule contains no 7 CFR Part 1710 and 1717 Intergovernmental Consultation, which Federal mandates (under the regulatory may require consultation with State and provision of title II of the Unfunded RIN 0572–AB68 local officials. See the final rule related Mandates Reform Act) for State, local, notice titled ‘‘Department Programs and and tribal governments or the private Exceptions of RUS Operational Activities Excluded from Executive sector. Thus, this proposed rule is not Controls Under Section 306E of the RE Order 12372’’ (50 FR 47034) advising subject to the requirements of sections Act that RUS loans and loan guarantees 202 and 205 of the Unfunded Mandates Reform Act. AGENCY: Rural Utilities Service, USDA. from coverage were not covered by Executive Order 12372. ACTION: Proposed rule. National Environmental Policy Act Executive Order 12988 Certification SUMMARY: In an effort to continually The Administrator of RUS has look for ways to streamline This proposed rule has been reviewed determined that this proposed rule will requirements of borrowers and make under Executive Order 12988, Civil not significantly affect the quality of regulations simple and direct, the Rural Justice Reform. RUS has determined human environment as defined by the Utilities Service (RUS) proposes to that this proposed rule meets the National Environmental Policy Act of eliminate regulations on Exceptions of applicable standards provided in 1969 (42 U.S.C. 4321 et seq.). Therefore, RUS Operational Controls under Section section 3 of the Executive Order. In this action does not require an 306E of the RE Act in its entirety. addition, all state and local laws and environmental impact statement or Because borrowers are now afforded the regulations that are in conflict with this assessment. same exemptions from RUS operational rule will be preempted; no retroactive controls by way of other provisions, effect will be given to this rule, and, in Catalog of Federal Domestic Assistance RUS has determined that the regulations accordance with section 212(e) of the The program described by this can now be removed. Department of Agriculture proposed rule is listed in the Catalog of DATES: Written comments must be Reorganization Act of 1994 (7 U.S.C. Federal Domestic Assistance Programs received by RUS or carry a postmark or 6912 (e)), administrative appeals under No. 10.850, Rural Electrification equivalent no later than June 24, 2002. procedures, if any are required, must be Loans and Loan Guarantees. This ADDRESSES: Written comments should exhausted before and action against the catalog is available on a subscription be addressed to F. Lamont Heppe, Jr., Department or its agencies. basis from the Superintendent of Director, Program Development and Documents, U.S. Government Printing Regulatory Flexibility Act Certification Regulatory Analysis, Rural Utilities Office, Washington, DC 20402–9325, telephone number (202) 512–1800. Service, U.S. Department of Agriculture, In accordance with the Regulatory STOP 1522, 1400 Independence Ave., Flexibility Act (5 U.S.C. 601 et seq.), the Background SW., Washington, DC 20250–1522. RUS Administrator of RUS has determined requests a signed original and three RUS currently treats the general that this rule will not have significant subject of operational controls for copies of all comments (7 CFR 1700.4). impact on a substantial number of small Comments will be available for public recipients of electric loans and entities. The RUS electric loan program guarantees in three separate places, inspection during regular business provides loans and loan guarantees to hours (7 CFR 1.27(b)). namely in RUS loan documents, in 7 borrowers at interest rates and terms CFR part 1717, subpart M, and in 7 CFR FOR FURTHER INFORMATION CONTACT: that are more favorable than those 1710.7. In the interests of eliminating Patrick R. Sarver, Management Analyst, generally available from the private confusion and to continue in its ongoing Rural Utilities Service, Electric Program, sector. Small entities are not subjected program to streamline RUS regulations, Room 4024 South Building, Stop 1560, to any requirements, which are not RUS is proposing to remove 7 CFR 1400 Independence Ave., SW., applied equally to large entities. RUS 1710.7. An understanding of how RUS Washington, DC 20250–1560, borrowers, as a result of obtaining treatment of operational controls Telephone: 202–690–2992, FAX: 202– federal financing, receive economic evolved in the 1990’s is essential to 690–0717, E-mail: benefits that exceed any direct cost understanding this action. [email protected]. associated with RUS regulations and In November of 1993, Congress SUPPLEMENTARY INFORMATION: requirements. enacted sec. 306e of the Rural

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Electrification Act of 1936 (RE Act)(7 borrowers than established originally in reader’s aids. Accordingly, RUS U.S.C. 936e), directing RUS to be 7 CFR 1710.7 for 110 percent borrowers. proposes to amend 7 CFR 1717.904 by ‘‘guided by the practices of private Therefore, § 1710.7 has been revised to eliminating paragraphs (c) and (d) lenders’’ to ‘‘minimize the approval reflect the greater latitude provided in thereof and redesignating the existing rights, requirements and restrictions, the new loan documents and Subpart paragraph (e) as paragraph (c). RUS and prohibitions that the Secretary M.’’ considers these changes in 7 CFR otherwise may establish with respect to RUS also concluded that in its 1717.904 to be of a conforming nature the operations’’ of any electric borrower ‘‘judgement’’ and citing ‘‘prudent and no substantive change in the whose net worth exceeds 110 percent of private lending practices,’’ the further existing treatment of requests for lien the outstanding principal balance on relaxation of operational controls for accommodations or subordinations by loans made or guaranteed by RUS (Pub. 110 percent borrowers was not justified 110 percent borrowers is intended. No L. 103–129 2(c)(7)). In December 1993, beyond what was provided for every changes in 7 CFR 1717.860 are borrower in the new loan documents Congress made technical corrections to necessitated by the proposed action and and in subpart M for ‘‘legacy’’ the act and effectively directed the so none are being made. Administrator to issue ‘‘interim final borrowers. In other words, by changing regulations’’ to implement sec. 306e 7 CFR 1710.7 only so far as necessary For all of the above reasons, it appears within 180 days (Pub. L. 103–201). RUS to avoid the anomaly of 110 percent that 7 CFR 1710.7 has become an did so on January 28, 1994 (59 FR 3982), borrowers being subjected to more anachronism because the subsequent thereby creating 7 CFR 1710.7. Members restrictive covenants under 7 CFR promulgation of new loan documents of the class of electric borrowers subject 1710.7 then they otherwise would have and subpart M effectively conferred the to this regulation are commonly referred been as a typical borrower operating benefits of 7 CFR 1710.7 to all to as ‘‘110 percent borrowers.’’ under the new documents and borrowers. Borrowers who are relying On December 29, 1995 (60 FR 67395), regulations, RUS made operational on subpart M are encouraged to switch RUS published a final rule substantially controls for 110 percent borrowers to the new forms of loan documents so revising the forms of its loan documents coextensive with the relaxed operational that subpart M itself can eventually be to extend the benefits of the treatment controls in the new loan documents and removed at a later date once the of 110 percent borrowers to virtually all subpart M. Thus, for all intents and universe of legacy borrowers has RUS borrowers. That exercise made the purposes, on December 29, 1995, the sufficiently contracted to the point that most comprehensive changes to RUS treatment of operational controls for all any remaining legacy borrowers could loan documents in over 20 years and three categories of electric borrowers be dealt with either informally or on a was guided by the practices of private converged around the less intrusive case-by-case basis. RUS does not believe lenders. Consequently, regardless of approach adopted by the new loan this proposed action will diminish or whether they were entitled to treatment documents reflecting private lending abrogate any rights or privileges as 110 percent borrowers, all borrowers practices. conferred upon 110 percent borrowers Since 1995, almost all RUS electric using the updated forms of loan by sec. 306e of the RE Act, and no such borrowers have executed the new loan documents enjoyed their more consequences are intended. contemporary treatment of the subject of documents. About 100 electric operational controls. That treatment borrowers still have the old forms, but List of Subjects closely followed the treatment of 110 the distinctions in operational controls percent borrowers in 7 CFR 1710.7. In have been eliminated by subpart M. It 7 CFR Part 1710 the same rulemaking, RUS promulgated should also be noted that every 110 Electric power, Electric utilities, Loan percent electric borrower either now has 7 CFR part 1717, subpart M, which also programs—energy, Reporting and the new form of loan documents or has treated the subject of operational recordkeeping requirements, Rural controls. Subpart M was intended to ‘‘legacy’’ loan documents, which have areas. manage the transition from old style been modified by the promulgation of loan documents to the more subpart M. Accordingly, the subject of 7 CFR Part 1717 contemporary new forms in an orderly operational controls is now treated and equitable way. RUS was concerned essentially the same way for all Administrative practice and that all of its borrowers would distribution borrowers regardless of procedure, Electric power, Electric simultaneously request replacement of their 110 percent borrower status. In all power rates, Electric utilities, their existing loan documentation with instances, that treatment has been Intergovernmental relations, the new forms. Constraints on RUS guided by the practices of private Investments, Loan programs—energy, resources necessitated the phasing in of lenders. Since that treatment of Reporting and recordkeeping the new loan documents. RUS managed operational controls conforms to the requirements, Rural areas. its concerns by promulgating subpart M requirements of sec. 306e of the RE Act, For the reasons set forth in the to conform the requirements for existing 7 CFR 1710.7 now appears to be an preamble, chapter X of title 7 of the loan documents to those being used in anachronism that no longer serves any the new forms. Borrowers who have not useful purpose. Code of Federal Regulations, is yet replaced their loan documents with RUS notes that sec. 306e of the RE Act proposed to be amended as follows: the new forms are referred to as also treats the subject of lien PART 1710—GENERAL AND PRE- ‘‘legacy’’ borrowers. accommodations and subordinations for In the preamble to that 1995 110 percent borrowers. Although this LOAN POLICIES AND PROCEDURES rulemaking, RUS explained the remains important, the subject of lien COMMON TO INSURED AND relationship between these three accommodations and subordinations for GUARANTEED ELECTRIC LOANS separate treatments of the subject of 110 percent borrowers is separately operational controls: ‘‘The provisions of treated in 7 CFR 1717.860 and 7 CFR 1. The authority citation for part 1710 the new mortgage and loan contract and 1717.904. Although 7 CFR 1717.904 continues to read as follows: 7 CFR part 1717, subpart M, in many contains some cross-references to 7 CFR Authority: 7 U.S.C. 901 et seq., 1921 et cases provide greater latitude to 1710.7(c), these appear to be merely seq., 6941 et seq.

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Subpart A—General Federal Reserve System, 20th Street and When implementing monetary policy, Constitution Avenue, NW., Washington, the Federal Reserve relies primarily on § 1710.7 [Removed and Reserved] DC, 20551 or mailed electronically to open market operations to supply 2. Section 1710.7 is removed and [email protected]. reserves to the banking system and reserved. Comments addressed to Ms. Johnson currency to the public and to make also may be delivered between 8:45 a.m. short-run adjustments in reserves. PART 1717—POST-LOAN POLICIES and 5:15 p.m. to the Board’s mail However, lending to depository AND PROCEDURES COMMON TO facility in the west courtyard of the institutions through the discount INSURED AND GUARANTEED Eccles Building, located on 21st Street window aids the Federal Reserve’s open ELECTRIC LOANS between Constitution Avenue and C market operations in two important 3. The authority citation for part 1717 Street, NW. Members of the public may ways. First, discount window lending continues to read as follows: inspect comments in accordance with provides additional reserves to the the Board’s Rules Regarding the overall banking system when the supply Authority: 7 U.S.C. 901 et seq., 1921 et Availability of Information (12 CFR part of reserves provided through open seq., 6941 et seq. 261) in Room MP–500 of the Martin market operations falls short of demand. Subpart S—Lien Accommodations for Building on weekdays between 9 a.m. Second, discount window lending Supplemental Financing Required by 7 and 5 p.m. provides a temporary source of reserves and funding to financially sound CFR 1710.110 FOR FURTHER INFORMATION CONTACT: individual depository institutions that Brian Madigan, Deputy Director (202/ § 1717.904 [Amended] have experienced an unexpected 452–3828) or William Nelson, Senior shortfall in reserves or funding. 4. Section 1717.904 is amended by Economist (202/452–3579), Division of Discount window credit permits such removing paragraphs (c) and (d) and Monetary Affairs; or Stephanie Martin, an institution to make payments redesignating paragraph (e) as paragraph Assistant General Counsel (202/452– without incurring an overdraft in its (c). 3198) or Adrianne Threatt, Senior Federal Reserve account or failing to Dated: May 20, 2002. Attorney (202/452–3554), Legal meet its reserve requirements. Curtis M. Anderson, Division; for users of Historically the Federal Reserve System Acting Administrator, Rural Utilities Service. Telecommunication Devices for the Deaf has relied on the adjustment credit [FR Doc. 02–13102 Filed 5–23–02; 8:45 am] (TDD) only, contact 202/263–4869. program to accomplish these two BILLING CODE 3410–15–P SUPPLEMENTARY INFORMATION: objectives. The discount window also can, at Background times, serve as a useful tool for FEDERAL RESERVE SYSTEM Current Credit Programs of Reserve promoting financial stability by Banks and Their Relationship to providing temporary funding to 12 CFR Part 201 Monetary Policy and Open Market depository institutions that are Operations experiencing significant financial Regulation A; Docket No. R–1123 difficulties. The provision of credit to a Under existing Regulation A, the troubled depository institution can help Extensions of Credit by Federal Reserve Banks may make credit to prevent the sudden collapse of the Reserve Banks available to depository institutions at institution by easing liquidity strains the discount window by making while the institution is making a AGENCY: Board of Governors of the advances secured by acceptable transition to more sound footing, or by Federal Reserve System. collateral or by discounting paper that facilitating an orderly closure of the ACTION: Proposed rule. meets the requirements of the Federal institution. An institution obtaining Reserve Act. Reserve Bank credit credit in such a situation must be SUMMARY: The Board of Governors is usually takes the form of an advance. publishing for comment a proposed monitored appropriately to ensure that Reserve Banks make credit available it does not take excessive risks in an amendment to Regulation A that would at the discount window through three replace the existing adjustment and attempt to return to profitability and credit programs: adjustment credit, does not use central bank credit in a extended credit programs with new seasonal credit, and extended credit. discount window programs called manner that would increase costs to the Adjustment credit is available for short deposit insurance fund of resolving the primary credit and secondary credit, periods of time at a basic discount rate respectively. This proposed institution if resolution were to become that, over the past decade, typically has necessary. Historically, the Federal restructuring of Federal Reserve credit been 25 to 50 basis points below the programs is designed to improve the Reserve System has relied on extended market rates that apply to overnight credit to aid depository institutions functioning of the discount window and loans, as indexed by the federal funds does not represent a change in the experiencing significant financial rate. Reserve Banks also extend seasonal difficulties. stance of monetary policy. The credit for longer periods than permitted proposed rule also would reorganize under the adjustment credit program to The Rationale for Changing the Basic and streamline existing provisions of help smaller depository institutions Framework Through Which Reserve Regulation A. The Board solicits meet funding needs that result from Banks Extend Credit comment on all aspects of the proposal. expected patterns in their deposits and A below-market discount rate creates DATES: Comments on the proposed rule loans. Finally, Reserve Banks may incentives for institutions to obtain must be received not later than August provide extended credit to depository adjustment credit to exploit the spread 22, 2002. institutions where similar assistance is between the discount rate and the ADDRESSES: Comments should refer to not reasonably available from other market rates for short-term loans. docket number R–1123 and should be sources. The rates applied to seasonal Regulation A therefore provides that a sent to Ms. Jennifer J. Johnson, and extended credit are at or above the Reserve Bank cannot extend adjustment Secretary, Board of Governors of the basic discount rate. credit to a depository institution until

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the institution exhausts other sources of discount rate and short-term market The substantive changes to the funds. Regulation A also provides that rates. Eliminating this incentive would lending programs are contained in recipients may not use adjustment reduce sharply the need for § 201.4 of the proposed rule, which credit to finance sales of federal funds. administration regarding the extension replaces existing § 201.3. The rates that Because of the restrictions and use of Federal Reserve credit. The apply to the proposed lending programs necessitated by a below-market discount streamlined eligibility criteria also are described in § 201.51, which rate, a substantial degree of Reserve should encourage greater uniformity in combines and replaces existing Bank administration is associated with administration of the discount window §§ 201.51–201.52. adjustment credit. In particular, the across Federal Reserve districts. By Primary Credit Reserve Bank may need to review each minimizing a Reserve Bank’s need to prospective borrower’s funding question potential borrowers, not Primary credit would replace situation to establish that the borrower requiring that an institution first attempt adjustment credit, would be extended has exhausted other reasonably to borrow elsewhere, making the on a very short-term basis (usually available sources of funds and that the borrowing program significantly more overnight) at an above-market rate, and reason for borrowing is appropriate. transparent, and limiting extensions of ordinarily would be available to Because that evaluation necessarily is primary credit to generally sound generally sound depository institutions subjective, achieving a reasonable financial institutions, the proposed with little or no administrative burden degree of consistency in credit above-market lending program should on the borrower or the Reserve Banks. administration across the System is reduce depository institutions’ A Reserve Bank also could extend difficult. reluctance to borrow when money primary credit with maturities up to a The administration of and restrictions markets tighten sharply. As a result, the few weeks to a depository institution if on discount window credit create a discount window should become a more the Reserve Bank finds that the burden on depository institutions that effective policy instrument. institution is in generally sound reduces their willingness to seek credit The Board reiterates that replacing the condition and cannot obtain such credit at the discount window. In addition, the current below-market adjustment credit in the market on reasonable terms. The rules governing discount window credit program with an above-market program Board expects that institutions receiving have proved difficult to explain, and would not signal a shift in the stance of longer-term primary credit would be depository institutions often have cited monetary policy. Rather, the proposed relatively small institutions that lack uncertainty about their borrowing changes represent a broad structural access to national money markets. privileges as a disincentive to seek change that should enable the discount Although the primary credit program credit. Depository institutions also have window to operate more efficiently as a is designed to make short-term credit expressed concern about the source of funds for individual available as a backup source of liquidity requirement that borrowers fully utilize depository institutions and as a to generally sound institutions, a other sources of funds before borrowing mechanism for implementing the policy Reserve Bank is not obligated to extend adjustment credit. Institutions have objectives of the Federal Reserve primary credit. A Reserve Bank expressed concern that turning to the System. The proposed structure of therefore may choose not to lend to a window after signaling in the market providing credit at the margin at above- generally sound depository institution if their need for funds could be market interest rates also would be the Reserve Bank determines that doing interpreted as a sign of weakness, similar to mechanisms adopted by other so would be inconsistent with the particularly during periods of financial major central banks. purposes of the primary credit program. stress. Concerns such as these have Section 201.4(a) of the proposed rule limited the willingness of depository Section-by-Section Analysis describes the primary credit program, institutions to borrow at the discount The Proposed Changes to the Discount and § 201.51(a) sets forth the rate that window, even in circumstances of Lending Framework—§§ 201.4 and applies to primary credit. extremely tight money markets where 201.51 1. Interest Rate Applicable to Primary such borrowing would have been appropriate. The reluctance to borrow in The Board proposes to replace the Credit turn has limited the discount window’s adjustment credit with a new lending The interest rate on primary credit effectiveness in buffering shocks to program called primary credit and the ordinarily would be above short-term money markets. extended credit program with a new market interest rates, including the In light of the drawbacks associated program known as secondary credit. target federal funds rate, and would be with the current below-market discount Although the proposed regulation set by the boards of directors of the window programs, the Board believes retains the seasonal credit program with Reserve Banks subject to review and that the interests of depository minor revisions, as discussed in more determination by the Board of institutions, the Federal Reserve detail below the Board specifically Governors. A substantial spread System, and the economy more requests comment on whether a between the discount and market rates generally would be served more seasonal credit program remains would encourage depository institutions effectively by an above-market lending necessary and, if so, whether the to use primary credit only to meet short- program. Under the Board’s proposed interest rate on seasonal credit would term, unforeseen needs. If the spread rule, Reserve Banks would extend credit more appropriately be set at the primary were too wide, however, the primary under the primary credit program to discount rate. As required by the discount rate would not cap the federal institutions the Reserve Banks Federal Reserve Act, all advances made funds rate at a reasonable level above determine to be generally sound. under the proposed discount lending the rate targeted by the Federal Open Primary credit usually would be programs would have to be adequately Market Committee (FOMC). extended at an above-market rate, which collateralized. The Reserve Banks’ The Board proposes to recommend should essentially eliminate the collateral policies would be unchanged that the boards of directors of the incentive for institutions to seek and they would continue to accept a Reserve Banks, subject to the Board’s discount window credit simply to broad range of financial assets as review and determination, initially exploit the usual spread between the collateral for discount window loans. establish a primary discount rate that is

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100 basis points above the FOMC’s would be based primarily on requirement is consistent with the then-prevailing target for the federal supervisory ratings, but supplementary overall reduction in discount window funds rate. A spread of 100 basis points information, such as ratings issued by administration under the proposed new would be similar to the spreads major rating agencies, spreads on discount window structure. In addition, employed by other central banks and subordinated debt, and information depository institutions that receive likely would place the primary discount from supervisory exams in progress, primary credit would be free to sell rate somewhat above the alternative cost also would be considered. The Board federal funds to others. This would of overnight funds for eligible further expects that the majority of enhance the ability of the primary credit depository institutions. The Board depository institutions would be eligible rate to serve as a cap on the federal believes that public comment could for the primary credit program under funds rate when money markets tighten. help inform the Federal Reserve such guidelines. The Board would encourage financially System’s choice of the initial spread The Board anticipates that Reserve sound institutions to use primary credit between the federal funds and discount Banks initially would adopt guidelines to fund sales of federal funds if such rates and assist the boards of directors under which domestically chartered transactions were in their financial of the Reserve Banks when they depository institutions with composite interest. establish rates subsequently. The Board CAMELS ratings of 1 or 2 and U.S. 3. Benefits of a Primary Credit Program therefore specifically solicits comment branches and agencies of foreign regarding the interest rate spread. banking organizations with Strength of Because of the reduced administration After establishment of the initial Support Assessment (SOSA) composite and corresponding reduction in the primary discount rate, the Federal rankings of 1 would be eligible for reluctance of depository institutions to Reserve System would change that rate primary credit, unless supplementary borrow, the Board expects that primary through a process identical to the information suggested that the financial credit would serve as a more effective existing discretionary procedure for condition of the depository institution safety valve for the banking system and changing the basic discount rate. The had deteriorated since the most recent a backup source of liquidity for boards of directors of the Federal exam. Similarly, the Board expects that individual depository institutions that Reserve Banks would establish a under the initial guidelines institutions are financially sound. primary discount rate and other rated CAMELS 3 or SOSA 2 would be The proposal to adopt a primary discount rates every two weeks subject eligible for primary credit if credit program also is an aspect of the to review and determination by the supplementary information suggested Federal Reserve’s ongoing planning for Board of Governors, as required by the that they were generally sound. contingencies. The Federal Reserve Federal Reserve Act. The primary However, the funding situation of such System expects to establish special discount rate presumably would move institutions seeking credit would be procedures through which the System broadly in line with the target federal reviewed and monitored more closely could lower discount rates quickly in an funds rate, much as the basic discount than that of stronger institutions. The emergency. If, as the Board intends, the rate does currently. Board expects that institutions rated availability of primary credit CAMELS 4 or SOSA 3 would be significantly reduces the reluctance of 2. Eligibility for Primary Credit ineligible for primary credit except in depository institutions to use the Under the proposed regulation, only rare circumstances, such as an ongoing discount window, the System should be depository institutions deemed examination that indicated a substantial able to cap the federal funds rate near generally sound in the judgment of the improvement in condition. The Board the target during a crisis by reducing the Reserve Bank would be eligible to further anticipates that institutions rated primary discount rate to a level close to obtain primary credit. Reserve Banks CAMELS 5 would in no case be eligible the federal funds target rate. During a would classify depository institutions for primary credit and could obtain only financial market crisis, the proposed with borrowing agreements already on secondary credit. discount window structure therefore file as either eligible or ineligible for Because lending to troubled would provide a means of preventing an primary credit before a primary credit institutions would be subject to careful undue tightening of money markets if program takes effect and would notify monitoring, the expected eligibility depository institutions’ demands for each such institution of its status. A criteria would be consistent with the excess reserves rose sharply, if new applicant for Federal Reserve credit intent of the guidelines for discount disruptions inhibited the flow of funds would be notified of its eligibility after window lending included in section through the banking system, or if the filing borrowing documents with the 10B(b) of the Federal Reserve Act, as Federal Reserve’s ability to carry out appropriate Federal Reserve Bank. The added by the Federal Deposit Insurance open market operations were impaired. Reserve Banks would notify an Corporation Improvement Act. The In addition, the Board expects that institution promptly of any change in criteria also would be consistent with moving to an above-market primary the institution’s eligibility status. An the guidelines used by Federal Reserve credit program would be beneficial to institution’s eligibility status, which Banks to determine institutions’ access the Federal Reserve System as the would be based in part on that to daylight credit in the Payments mechanisms by which the Board institution’s confidential supervisory System Risk policy. In general, the implements monetary policy evolve. For and examination information, would be depository institutions that qualify for example, if Congress authorizes the considered confidential information and access to daylight credit would qualify Federal Reserve Banks to pay interest on the Federal Reserve System would for primary credit, and those that would reserve balances, an above-market handle it accordingly. not qualify for daylight credit would be lending program would allow the The Board expects that the Reserve restricted to secondary credit. Reserve Banks to avoid lending to Banks would adopt on a System-wide A depository institution that meets depository institutions at a below- basis uniform guidelines for judging the the eligibility criteria adopted by the market rate while paying interest to degree of an institution’s financial Reserve Banks would not be required to those institutions at a market-related soundness and thus its eligibility for exhaust other reasonable available rate. Also, if the level of required primary credit. The Board envisions that sources of funds before obtaining operating balances resumes the the guidelines for determining eligibility primary credit. The removal of this substantial downward decline

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experienced for much of the last decade, existing language requiring the seasonal use the facility are described at existing a lending program with appreciably less credit rate to be at least as high as the § 201.7(b). Sections 201.2(j)–(k) define administration could enhance the day- primary credit rate. In addition, the two terms—‘‘eligible institution’’ and to-day implementation of monetary System for some time has not required ‘‘targeted federal funds rate,’’ policy. A decline in operating balances that a seasonal credit borrower respectively—that pertain only to the could lead to increased volatility in the demonstrate that it could not obtain SLF provisions. Because the SLF is no federal funds rate, and the availability of similar assistance from special industry longer in effect, the Board proposes to reserves from an above-market lending lenders, and the proposed rule delete each of the four provisions facility would serve to limit the increase accordingly deletes this requirement. discussed above. As discussed in more in volatility. The seasonal credit program detail in connection with proposed originally was designed to address the § 201.3(d), the Board proposes to delete Secondary Credit difficulties that relatively small banks a portion of existing § 201.6(d) that Secondary credit would replace with substantial intra-yearly swings in allows a depository institution to use extended credit and would be available funding needs faced because of a lack of credit obtained from the SLF to fund to depository institutions that do not access to the national money markets. sales of federal funds. qualify for primary credit. Because some Reserve Banks traditionally have institutions that currently are eligible extended seasonal credit to small Section 201.1 Authority, Purpose and for adjustment credit would not qualify institutions that demonstrate significant Scope for primary credit, secondary credit seasonal swings in their loans and The Board proposes to amend the potentially would be used more often deposits. However, funding existing authority citations at § 201.1(a) than has the extended credit program. opportunities for smaller depository to include sections 11(i)–11(j) and 14(d) The text of the proposed regulation institutions appear to have expanded of the Federal Reserve Act. Sections therefore seeks to eliminate the focus on significantly over the past few decades 11(i)–(j) provide the Board with longer-term credit extensions in the as a result of deposit deregulation and rulemaking authority and general existing extended credit program and to the general development of financial supervisory authority over the Reserve recognize the somewhat broader class of markets. The Board therefore Banks, respectively, and section 14(d) borrowing situations that a Reserve specifically solicits comment on authorizes the Reserve Banks, subject to Bank may handle under the secondary whether small depository institutions the review and determination of the credit program. still lack reasonable access to funding Board, to establish discount rates. Section 201.4(b) of the proposed rule markets; on the desirability of As in the existing regulation, describes the secondary credit program, eliminating the seasonal lending § 201.1(b) of the proposed rule describes and § 201.51(b) describes the interest program; and on the appropriate setting the purpose and scope of the Regulation rate that applies to secondary credit. of the seasonal lending rate, particularly A and states that the regulation governs Under the proposal, Federal Reserve in view of the proposed establishment lending by Reserve Banks to depository Banks may extend secondary credit to of a primary credit program with an institutions and others. To gather all the meet temporary funding needs of an above-market rate. Depending on the provisions concerning the scope of institution if such a credit extension comments received, the Board may Regulation A into one section, the would be consistent with the decide to adjust the rate applicable to proposed rule incorporates language institution’s timely return to a reliance seasonal credit or to eliminate the from existing § 201.7(a) regarding the on market funding sources. A Reserve seasonal credit program altogether. circumstances under which U.S. Bank also may extend secondary credit branches and agencies of foreign banks if it determines that such credit would Reorganization of and Proposed are subject to the regulation. facilitate the orderly resolution of Changes to Other Provisions of serious financial difficulties of the Regulation A Section 201.2—Definitions borrowing institution. When extending In addition to replacing the This section would remain unchanged secondary credit to an undercapitalized adjustment and extended credit except for the deletion of five or critically undercapitalized depository programs with primary and secondary definitions. As discussed above, institution, a Reserve Bank also must credit programs, respectively, the Board §§ 201.2(j)–(k) contain definitions that observe the requirements set forth at also proposes to reorganize much of are unnecessary because they relate only proposed § 201.5. The interest rate on existing Regulation A in order to to the SLF. The other three terms the secondary credit would be set by streamline the text of the rule and make Board proposes to delete are liquidation formula 50 basis points above the it easier to read and understand. In loss, increased loss, and excess loss, primary discount rate. This higher rate addition, the Board proposes to delete found at existing §§ 201.2(d)–(f), reflects the less-sound condition of certain provisions of existing Regulation respectively. borrowers of secondary credit. A that are obsolete or superfluous. Liquidation loss and increased loss are used to derive the term excess loss, Seasonal Credit Deletion of Provisions Concerning the which is the amount the Board would Section 201.4 of the proposed rule Century Date Change Special Liquidity owe the FDIC under section 10B(b) of makes only minor revisions to the Facility (SLF) the Federal Reserve Act if outstanding existing seasonal credit provisions of The Board previously amended Reserve Bank advances to a critically Regulation A. The seasonal credit Regulation A so that depository undercapitalized depository institution interest rate is based on short-term institutions would have access to an increased the FDIC’s cost of liquidating market rates, and historical interest rate SLF from October 1, 1999, to April 7, that institution. Excess loss, the only relationships suggest that the rate for 2000, to ease liquidity pressures unique one of these three terms used elsewhere seasonal credit usually will be below to the century date change period. The in the regulation, appears in existing the primary credit rate. Sections 201.4 SLF for U.S. depository institutions is § 201.4(c). That section states that the and 201.51(c) of the proposed rule, described at existing § 201.3(e), and the Board would assess a Reserve Bank for which discuss the rate applicable to circumstances under which a U.S. any excess loss attributable to advances seasonal credit, would not contain branch or agency of a foreign bank could made by that Reserve Bank and

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discusses the procedure by which the Regulation A concerning the Section 201.5 Limitations on Board would calculate the amount to be requirements a Reserve Bank must Availability and Assessments assessed. observe when it does extend credit. The existing text of § 201.4 would be The Board believes the regulation Section 201.3(c)(1) contains text from redesignated as § 201.5, with technical would be less cumbersome but no less existing § 201.4(d) providing that a revisions. This section incorporates the accurate if the assessment section Reserve Bank should ascertain whether limitations on advances to an incorporated the concept of excess loss an institution is undercapitalized or undercapitalized or critically by simply cross-referencing section critically undercapitalized before undercapitalized depository institution 10B(b) of the Federal Reserve Act. extending credit to that institution. This set forth in section 10B(b) of the Federal Although the existing definitions section adds text stating that, if the Reserve Act and also applies those explain accurately and in detail how the limitations to discounts for such Board would calculate the excess loss, institution is undercapitalized or institutions. In addition, § 201.5 they produce the same result required critically undercapitalized, the Reserve by section 10B(b) of the statute. Bank must follow special lending discusses section 10B(b)’s requirement procedures. These procedures are that the Board pay a specified amount Section 201.3 General Requirements specified in proposed § 201.5, which to the FDIC if a Reserve Bank advance Governing Extensions of Credit contains the text of current § 201.4 and to a critically undercapitalized This section would prescribe the is discussed in more detail below. depository institution increases the loss Board’s rules governing a Federal the FDIC incurs when liquidating that Proposed §§ 201.3(c)(2)–(3) include institution. The existing regulation Reserve Bank’s extension of credit. This text from existing §§ 201.6(b)–(c) section would permit Federal Reserve explains in detail through the regarding a Reserve Bank’s duty to Banks to extend credit in the form of an definitions of ‘‘liquidation loss,’’ require any information it deems advance or discount and would discuss ‘‘increased loss,’’ and ‘‘excess loss’’ how requirements that both the Reserve appropriate to ensure the acceptability the Board would calculate that amount. Banks and the depository institutions of assets tendered as collateral or for The proposed rule, by contrast, would receiving credit must observe. The text discount, to ensure that credit is used delete these three definitions and of proposed § 201.3 combines in one consistent with Regulation A, and to simply provide that the Board will place all the existing provisions of keep itself informed of the general assess the Federal Reserve Banks for any Regulation A that relate to each of these character and amount of loans and amount the Board pays to the FDIC in topics. investments of a depository institution accordance with section 10B(b) of the Proposed paragraph (a) of § 201.3 as required by section 4(8) of the Federal Reserve Act. would consolidate all the existing Federal Reserve Act. Regulatory Flexibility Act provisions of Regulation A concerning a Proposed § 201.3(d) consists of In accordance with section 3(a) of the Reserve Bank’s authority to extend existing § 201.6(d), with revisions, credit. Proposed § 201.3(a) mostly Regulatory Flexibility Act (5 U.S.C. regarding how a depository institution contains existing text from § 201.5 and 603(a)) the Board must publish an initial may use Federal Reserve credit. In provides that a Reserve Bank may regulatory flexibility analysis with this extend credit to a depository institution existing Regulation A, only depository proposed regulation. As discussed in the form of an advance or a discount institutions that received credit under above, the proposed above-market of certain types of paper described in the century date change SLF were discount rate structure is designed to the Federal Reserve Act. Like existing permitted to use Federal Reserve credit enable the discount window to operate § 201.5, the proposed section states that to fund sales of federal funds without more efficiently as a back-up source of credit to depository institutions permission of the Reserve Bank funds for individual depository generally will take the form of an extending the credit. Because the SLF institutions and as a mechanism for advance but preserves a Reserve Bank’s no longer is in effect, the Board would implementing the policy objectives of discretion to lend through discounting delete the language that pertains to the Federal Reserve System. By limiting eligible paper if the Reserve Bank credit obtained through that facility. primary credit eligibility to generally determines that a discount would be Instead, as explained more fully above sound institutions, minimizing a more appropriate for a particular in the section discussing primary credit, Reserve Bank’s need to question depository institution. The proposed proposed § 201.3(d) would permit an potential borrowers, and making the rule would delete existing § 201.8, institution that receives primary credit borrowing programs more transparent, which provides that a Reserve Bank may to use that credit to fund sales of federal the proposal seeks to eliminate current discount paper for an institution that is funds without Reserve Bank permission. disincentives for depository institutions part of the farm credit system, and Recipients of secondary or seasonal to seek Federal Reserve credit when instead would discuss that authority at credit would continue to need Reserve money markets tighten. The Board proposed § 201.3(a)(3). Rather than Bank permission to use Reserve Bank knows of no other regulations that providing the lengthy discussion at credit to fund sales of federal funds. overlap or conflict with, or duplicate, existing § 201.8, proposed § 201.3(a)(3) the proposed rule. The Board proposes to delete existing simply cross-references section 13A of The proposed rule would apply to all the Federal Reserve Act, which § 201.6(a), which provides that a depository institutions that are eligible authorizes Reserve Banks to discount depository institution may not use to borrow at the discount window, paper for such institutions. Federal Reserve credit as a substitute for including approximately 16,000 small Proposed § 201.3(b) contains the text capital. Although the Board continues to depository institutions, and would not of existing § 201.9, which states that a believe this to be an appropriate policy, add any recordkeeping, reporting, or Reserve Bank has no obligation to make, the Board believes that other provisions compliance requirements associated increase, renew, or extend any advance of the statutes and regulations that it with discount window borrowing. The or discount to a depository institution. administers address this issue. Thus, the requirements of the proposed rule Proposed § 201.3(c) gathers in one Board sees no need to retain this would be the same for all depository place the existing provisions of provision in Regulation A. institutions regardless of their size.

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However, if the Board altered the (b) Purpose and scope. This part institution as defined in section 3 of the seasonal credit program in response to establishes rules under which a Federal act (12 U.S.C. 1813(c)(2)) or is eligible public comments, small depository Reserve Bank may extend credit to to apply to become an insured institutions, which are the primary depository institutions and others. depository institution under section 5 of users of that program, would be affected Except as otherwise provided, this part the act (12 U.S.C. 15(a)). more than larger institutions. Because applies to United States branches and (2) The term ‘‘depository institution’’ the Board estimates that fewer than 5 agencies of foreign banks that are does not include a financial institution percent of eligible small depository subject to reserve requirements under that is not required to maintain reserves institutions typically receive seasonal Regulation D (12 CFR part 204) in the under § 204.1(c)(4) of Regulation D (12 credit each year, the Board does not same manner and to the same extent as CFR 204.1(c)(4)) because it is organized expect changes to or elimination of the this part applies to depository solely to do business with other seasonal credit program to have a large institutions. The Federal Reserve financial institutions, is owned impact in the aggregate. System extends credit with due regard primarily by the financial institutions The Board solicits comment on the to the basic objectives of monetary with which it does business, and does likely impact the proposed rule would policy and the maintenance of a sound not do business with the general public. have on depository institutions, and orderly financial system. (d) Transaction account and including those that are small business nonpersonal time deposit have the concerns. The Board particularly is § 201.2 Definitions. meanings specified in Regulation D (12 interested in the public’s view on how For purposes of this part, the CFR part 204). the increase in the discount rate relative following definitions shall apply: (e) Undercapitalized insured to money market interest rates and the (a) Appropriate federal banking depository institution means any corresponding reduction in agency has the same meaning as in insured depository institution as administrative burden would affect section 3 of the Federal Deposit defined in section 3 of the FDI Act (12 depository institutions of different sizes. Insurance Act (FDI Act) (12 U.S.C. U.S.C. 1813(c)(2)) that: 1813(q)). (1) Is not a critically undercapitalized Paperwork Reduction Act (b) Critically undercapitalized insured insured depository institution; and In accordance with the Paperwork depository institution means any (2)(i) Is deemed to be Reduction Act of 1995 (44 U.S.C. 3506; insured depository institution as undercapitalized under section 38 of the 5 CFR 1320 Appendix A.1), the Board defined in section 3 of the FDI Act (12 FDI Act (12 U.S.C. 1831o(b)(1)(C)) and has reviewed the proposed rule under U.S.C. 1813(c)(2)) that is deemed to be its implementing regulations; or the authority delegated to the Board by critically undercapitalized under (ii) Has received from its appropriate the Office of Management and Budget. section 38 of the FDI Act (12 U.S.C. federal banking agency a composite The proposed rule contains no new 1831o(b)(1)(E)) and its implementing CAMELS rating of 5 under the Uniform collections of information and proposes regulations. Financial Institutions Rating System (or no substantive changes to existing (c)(1) Depository institution means an an equivalent rating by its appropriate collections of information pursuant to institution that maintains reservable federal banking agency under a the Paperwork Reduction Act. transaction accounts or nonpersonal comparable rating system) as of the most time deposits and is: recent examination of such institution. List of Subjects in 12 CFR Part 201 (i) An insured bank as defined in (f) Viable, with respect to a depository Credits. section 3 of the FDI Act (12 U.S.C. institution, means that the Board of For the reasons set forth in the 1813(h)) or a bank that is eligible to Governors or the appropriate federal preamble, the Board revises part 201 of make application to become an insured banking agency has determined, giving subchapter A of Chapter II, Title 12 of bank under section 5 of such act (12 due regard to the economic conditions the Code of Federal Regulations to read U.S.C. 1815); and circumstances in the market in as follows: (ii) A mutual savings bank as defined which the institution operates, that the in section 3 of the FDI Act (12 U.S.C. institution is not critically PART 201—EXTENSIONS OF CREDIT 1813(f)) or a bank that is eligible to undercapitalized, is not expected to BY FEDERAL RESERVE BANKS make application to become an insured become critically undercapitalized, and (REGULATION A) bank under section 5 of such act (12 is not expected to be placed in U.S.C. 1815); conservatorship or receivership. Sec. (iii) A savings bank as defined in Although there are a number of criteria 201.1 Authority, purpose and scope. section 3 of the FDI Act (12 U.S.C. that may be used to determine viability, 201.2 Definitions. 1813(g)) or a bank that is eligible to 201.3 Extensions of credit generally. the Board of Governors believes that 201.4 Availability and terms of credit. make application to become an insured ordinarily an undercapitalized insured 201.5 Limitations on availability and bank under section 5 of such act (12 depository institution is viable if the assessments. U.S.C. 1815); appropriate federal banking agency has 201.51 Interest rates applicable to credit (iv) An insured credit union as accepted a capital restoration plan for extended by a Federal Reserve Bank. defined in section 101 of the Federal the depository institution under 12 Authority: 12 U.S.C. 248(i)–(j), 347a, 347b, Credit Union Act (12 U.S.C. 1752(7)) or U.S.C. 1831o(e)(2) and the depository 343 et seq., 347c, 348 et seq., 357, 374, 374a, a credit union that is eligible to make institution is complying with that plan. and 461. application to become an insured credit union pursuant to section 201 of such § 201.3 Extensions of credit generally. § 201.1 Authority, purpose and scope. act (12 U.S.C. 1781); (a) Advances to and discounts for a (a) Authority. This part is issued (v) A member as defined in section 2 depository institution. (1) A Federal under the authority of sections 10A, of the Federal Home Loan Bank Act (12 Reserve Bank may lend to a depository 10B, 11(i), 11(j), 13, 13A, 14(d), and 19 U.S.C. 1422(4)); or institution either by making an advance of the Federal Reserve Act (12 U.S.C. (vi) A savings association as defined secured by acceptable collateral under 248(i)–(j), 347a, 347b, 343 et seq., 347c, in section 3 of the FDI Act (12 U.S.C. § 201.4 of this part or by discounting 348 et seq., 357, 374, 374a, and 461). 1813(b)) that is an insured depository certain types of paper. A Federal

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Reserve Bank generally extends credit judgment of the Reserve Bank. Such judgment of the Federal Reserve Bank, by making an advance. primary credit ordinarily is extended credit is not available from other (2) An advance to a depository with minimal administrative burden on sources and failure to obtain such credit institution must be secured to the the borrowing institution. A Federal would adversely affect the economy. If satisfaction of the Federal Reserve Bank Reserve Bank also may extend primary the collateral used to secure emergency that makes the advance. Satisfactory credit with maturities up to a few weeks credit consists of assets other than collateral generally includes United to a depository institution if the Reserve obligations of, or fully guaranteed as to States government and federal-agency Bank determines that the institution is principal and interest by, the United securities, and, if of acceptable quality, in generally sound condition and that States or an agency thereof, credit must mortgage notes covering one-to four- the institution cannot obtain such credit be in the form of a discount and five or family residences, state and local in the market on reasonable terms. more members of the Board of government securities, and business, Credit extended under the primary Governors must affirmatively vote to consumer, and other customer notes. credit program is granted at the primary authorize the discount prior to the (3) If a Federal Reserve Bank discount rate. extension of credit. Emergency credit concludes that a discount would meet (b) Secondary credit. A Federal will be extended at a rate above the the needs of a depository institution or Reserve Bank may extend secondary highest rate in effect for advances to an institution described in section 13A credit to meet temporary funding needs depository institutions. of the Federal Reserve Act (12 U.S.C. of a depository institution that is not 349) more effectively, the Reserve Bank eligible for primary credit if, in the § 201.5 Limitations on availability and may discount any paper indorsed by the judgment of the Reserve Bank, such a assessments. institution, provided the paper meets credit extension would be consistent (a) Lending to undercapitalized the requirements specified in the with the institution’s timely return to a insured depository institutions. A Federal Reserve Act. reliance on market funding sources. A Federal Reserve Bank may make or have (b) No obligation to make advances or Reserve Bank also may extend outstanding advances to or discounts for discounts. A Federal Reserve Bank shall secondary credit if the Reserve Bank a depository institution that it knows to have no obligation to make, increase, determines that such credit would be an undercapitalized insured renew, or extend any advance or facilitate the orderly resolution of depository institution, only: discount to any depository institution. serious financial difficulties of a (1) If, in any 120-day period, advances (c) Information requirements. (1) depository institution. Credit extended or discounts from any Federal Reserve Before extending credit to a depository under the secondary credit program is Bank to that depository institution are institution, a Federal Reserve Bank granted at a rate above the primary not outstanding for more than 60 days should determine if the institution is an discount rate. during which the institution is an undercapitalized insured depository (c) Seasonal credit. A Federal Reserve undercapitalized insured depository institution or a critically Bank may extend seasonal credit for institution; or undercapitalized insured depository periods longer than those permitted (2) During the 60 calendar days after institution and, if so, follow the lending under primary credit to assist a smaller the receipt of a written certification procedures specified in § 201.5. depository institution in meeting regular from the chairman of the Board of (2) Each Federal Reserve Bank shall needs for funds arising from expected Governors or the head of the appropriate require any information it believes patterns of movement in its deposits federal banking agency that the appropriate or desirable to ensure that and loans. An interest rate that varies borrowing depository institution is assets tendered as collateral for with the level of short-term market viable; or advances or for discount are acceptable interest rates is applied to seasonal (3) After consultation with the Board and that the borrower uses the credit credit. of Governors. In unusual circumstances, provided in a manner consistent with (1) A Federal Reserve Bank may when prior consultation with the Board this part. extend seasonal credit only if: is not possible, a Federal Reserve Bank (3) Each Federal Reserve Bank shall: (i) The depository institution’s should consult with the Board as soon (i) Keep itself informed of the general seasonal needs exceed a threshold that as possible after extending credit that character and amount of the loans and the institution is expected to meet from requires consultation under this investments of a depository institution other sources of liquidity (this threshold paragraph (a). as provided in section 4(8) of the is calculated as a certain percentage, (b) Lending to critically Federal Reserve Act (12 U.S.C. 301); and established by the Board of Governors, undercapitalized insured depository (ii) Consider such information in of the institution’s average total deposits institutions. A Federal Reserve Bank determining whether to extend credit. in the preceding calendar year); and may make or have outstanding advances (d) Indirect credit for others. Except (ii) The Federal Reserve Bank is to or discounts for a depository for depository institutions that receive satisfied that the institution’s qualifying institution that it knows to be a primary credit as described in need for funds is seasonal and will critically undercapitalized insured § 201.4(a), no depository institution persist for at least four weeks. depository institution only: shall act as the medium or agent of (2) The Board may establish special (1) During the 5-day period beginning another depository institution in terms for seasonal credit when on the date the institution became a receiving Federal Reserve credit except depository institutions are experiencing critically undercapitalized insured with the permission of the Federal unusual seasonal demands for credit in depository institution; or Reserve Bank extending credit. a period of liquidity strain. (2) After consultation with the Board (d) Emergency credit for others. In of Governors. In unusual circumstances, § 201.4 Availability and terms of credit. unusual and exigent circumstances and when prior consultation with the Board (a) Primary credit. A Federal Reserve after consultation with the Board of is not possible, a Federal Reserve Bank Bank may extend primary credit on a Governors, a Federal Reserve Bank may should consult with the Board as soon very short-term basis, usually overnight, extend credit to an individual, as possible after extending credit that to a depository institution that is in partnership, or corporation that is not a requires consultation under this generally sound condition in the depository institution if, in the paragraph (b).

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(c) Assessments. The Board of the Textile Fiber Products Identification manufactured olefin textile fiber with a Governors will assess the Federal Act (‘‘Textile Rules’’) to establish a new cross-linked polymer network structure. Reserve Banks for any amount that the generic fiber subclass name and Dow stated that CEF meets the broad Board pays to the FDIC due to any definition as an alternative to the definition of olefin fiber in the Textile excess loss in accordance with section generic name ‘‘olefin’’ for a specifically Rules, 16 CFR 303.7(m). According to 10B(b) of the Federal Reserve Act (12 proposed subclass of olefin fibers Dow, however, CEF differs from U.S.C. 347b(b)). Each Federal Reserve manufactured by the Dow Chemical commercially available olefin fibers Bank shall be assessed that portion of Company (‘‘Dow’’), of Midland, because of its elasticity and wide the amount that the Board of Governors Michigan. Dow suggested the name temperature tolerance, which make it a pays to the FDIC that is attributable to ‘‘lastol’’ for the fiber, which it described good choice for easy-care stretch apparel an extension of credit by that Federal as an elastic, cross-linked olefin fiber applications. Reserve Bank, up to 1 percent of its capable of retaining its shape at high As a result of CEF’s fiber structure, capital as reported at the beginning of temperatures and referred to as ‘‘CEF.’’ Dow maintained that CEF has the the calendar year in which the DATES: Comments will be accepted following distinctive properties: (1) assessment is made. The Board of through August 12, 2002. Stretch and recovery power that is far Governors will assess all of the Federal ADDRESSES: Comments should be superior to that of any olefin fiber; (2) Reserve Banks for the remainder of the submitted to: Office of the Secretary, shape retention at temperatures in amount it pays to the FDIC in the ratio Federal Trade Commission, Room 159, excess of 170°C, which enables CEF to that the capital of each Federal Reserve 600 Pennsylvania Ave., NW., survive rigorous manufacturing and Bank bears to the total capital of all Washington DC 20580. Comments consumer care processes; and (3) Federal Reserve Banks at the beginning should be identified as ‘‘16 CFR Part chemical resistance to solvents that of the calendar year in which the 303—Textile Rule 8 Dow Comment— typically dissolve conventional olefins. assessment is made, provided, however, P948404.’’ Dow asserted that olefin, widely that if any assessment exceeds 50 FOR FURTHER INFORMATION CONTACT: recognized as a dependable carpet fiber percent of the total capital and surplus Neil Blickman, Attorney, Division of that has no stretch or elastic recovery of all Federal Reserve Banks, whether to and poor high temperature stability, is distribute the excess over such 50 Enforcement, Bureau of Consumer Protection, Federal Trade Commission, an inappropriate categorization for the percent shall be made at the discretion elastic olefin fiber, CEF, which is of the Board of Governors. Washington, DC 20580; (202) 326–3038. SUPPLEMENTARY INFORMATION: targeted for apparel applications. § 201.51 Interest rates applicable to credit According to Dow, CEF will offer extended by a Federal Reserve Bank. I. Background consumers a wider choice in garments (a) Primary credit. The rates for Rule 6 of the Textile Rules (16 CFR containing stretch fabric. Dow contends, primary credit provided to depository 303.6) requires manufacturers to use the in essence, that it would be confusing to institutions under § 201.4(a) are: [The generic names of the fibers contained in consumers if CEF is called simply chart will appear in the final rule.] their textile products in making fiber ‘‘olefin.’’ (b) Secondary credit. An interest rate content disclosures on labels, as Dow, therefore, petitioned the 50 basis points above the rate for required by the Textile Fiber Products Commission to establish the generic primary credit in § 201.51 will apply to Identification Act (‘‘Textile Act’’), 15 name ‘‘lastol’’ as an alternative to, and secondary credit extended to depository U.S.C. 70b(b)(1). Rule 7 of the Textile a subclass of, ‘‘olefin.’’ In addition, Dow institutions under § 201.4(c). Rules (16 CFR 303.7) sets forth the proposed that the Commission add the (c) Seasonal credit. The rate for generic names and definitions that the following sentence to the current seasonal credit extended to depository Commission has established for definition of olefin in Rule 7(m) to institutions under § 201.4(b) is a flexible synthetic fibers. Rule 8 (16 CFR 303.8) define CEF and similar fibers as a rate that takes into account rates on describes the procedures for subclass of olefin: market sources of funds. establishing new generic names. Where the fiber is a manufactured cross- By order of the Board of Governors of the Dow applied to the Commission on linked elastic fiber in which a) the fiber- Federal Reserve System, May 16, 2002. October 18, 2001, for a new olefin fiber forming substance is a synthetic polymer, subclass name and definition, and Jennifer J. Johnson, with low but significant crystallinity, supplemented its application with composed of at least 99 percent by weight of Secretary of the Board. additional information and test data on ethylene and at least one other olefin unit, [FR Doc. 02–12781 Filed 5–23–02; 8:45 am] December 12, 2001, January 16, 2002, and b) the fiber exhibits substantial elasticity BILLING CODE 6210–01–P and March 19, 2002.1 Dow stated that its and heat resistance properties not present in new cross-linked elastic fiber, CEF, is a traditional olefin fibers, the term lastol may be used as a generic description of the fiber. FEDERAL TRADE COMMISSION 1 Dow’s petition and supplements thereto are on The effect of Dow’s proposed the rulemaking record of this proceeding. This 16 CFR Part 303 material, as well as any comments filed in this amendment would be to allow use of proceeding, will be available for public inspection the name ‘‘lastol’’ as an alternative to Rules and Regulations Under the in accordance with the Freedom of Information Act, the generic name ‘‘olefin’’ for the 5 U.S.C. 552, and the Commission’s Rules of subcategory of olefin fibers meeting the Textile Fiber Products Identification Practice, 16 CFR 4.11, at the Consumer Response Act Center, Public Reference Section, Room 130, further criteria contained in the Federal Trade Commission, 600 Pennsylvania sentence added by the proposed AGENCY: Federal Trade Commission. Avenue, N.W., Washington, D.C. Any comments amendment. ACTION: Notice of proposed rulemaking. that are filed will be found under the Rules and Regulations Under the Textile Fiber Products After an initial analysis with the SUMMARY: The Federal Trade Identification Act, 16 CFR Part 303, Matter No. assistance of a textile expert, the P948404, ‘‘Dow Generic Fiber Petition Commission has determined that Dow’s Commission (‘‘Commission’’) solicits Rulemaking.’’ The comments and petition also may comments on whether to amend Rule be viewed on the Commission’s website at proposed new fiber technically falls 7(m) of the Rules and Regulations Under www.ftc.gov. within Rule 7(m)’s definition of

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‘‘olefin.’’ 2 The Commission has further to establish a generic fiber subclass of distinctive features resulting from determined that Dow’s application for a ‘‘polyester,’’ 67 FR 7104 (Feb. 15, 2002), physical characteristics of the fiber and new subclass name and definition the Commission further articulated that its method of manufacture, which meets merits further consideration. a new generic fiber subclass may be the above standard for allowing Accordingly, the Commission has appropriate in cases where the proposed designation by the subclass name issued Dow the designation ‘‘DCC 0001’’ subclass fiber: (1) Has the same general ‘‘lastol.’’ Alternatively, CEF may fit for temporary use in identifying CEF chemical composition as an established within the current definition of olefin in fiber pending a final determination on generic fiber category; (2) has distinctive Rule 7(m), with or without need for the merits of the application for a new properties of importance to the general clarification. This notice of proposed generic fiber subclass name and public as a result of a new method of rulemaking, therefore, suggests three definition. A final determination will be manufacture or substantially approaches to resolve the situation, and based on whether the record in this differentiated physical characteristics, requests comment from the public on proceeding indicates that Dow meets the such as fiber structure; and (3) the the relative merits of each: Commission’s criteria for issuing new distinctive feature(s) make the fiber 1. Amend Rule 7(m) to broaden its fiber subclass names and definitions, as suitable for uses for which other fibers definition for olefin to better describe described in Part II, below. under the established generic name the allegedly unique molecular structure would not be suited, or would be and physical characteristics of CEF and II. Invitation to Comment significantly less well suited.4 any similar fibers (without creating a The Commission is soliciting Within the established 24 generic new subclass for CEF); comment on Dow’s application names for manufactured fibers, there are 2. Amend Rule 7(m)’s definition for generally, and on whether the three cases where such generic name olefin by creating a separate subclass application meets the Commission’s alternatives may be used: (1) Pursuant to name and definition for CEF and other criteria for granting applications for new Rule 7(d), 16 CFR 303.7(d), within the similar qualifying fibers within the generic fiber subclass names. generic category ‘‘rayon,’’ the term olefin category; or The Commission first articulated ‘‘lyocell’’ may be used as an alternative 3. Deny Dow’s application because standards for establishing a new generic generic description for a specifically CEF fiber fits within Rule 7(m)’s fiber ‘‘subclass’’ in the proceeding to defined subcategory of rayon fiber; (2) definition of olefin without need for any allow use of the name ‘‘lyocell’’ as an pursuant to Rule 7(e), 16 CFR 303.7(e), change. alternative generic description for a within the generic category ‘‘acetate,’’ In today’s notice of proposed specifically defined subcategory of the term ‘‘triacetate’’ may be used as an rulemaking, the Commission is ‘‘rayon’’ fiber, pursuant to 16 CFR alternative generic description for a soliciting comments on all aspects of the 303.7(d).3 specifically defined subcategory of appropriateness of Dow’s proposed In its recent notice of proposed acetate fiber; and (3) pursuant to Rule amendment to Rule 7(m)’s definition of rulemaking regarding DuPont’s proposal 7(j), 16 CFR 303.7(j), within the generic olefin. Although the Commission category ‘‘rubber,’’ the term ‘‘lastrile’’ initially has determined that Dow’s new 2 Rule 7(m) defines ‘‘olefin’’ as ‘‘[a] manufactured may be used as an alternative generic fiber technically falls within the existing fiber in which the fiber-forming substance is any long chain synthetic polymer composed of at least description for a specifically defined Rule 7(m), 16 CFR 303.7(m), definition 85 percent by weight of ethylene, propylene, or subcategory of rubber fiber.5 of ‘‘olefin,’’ the Commission believes it other olefin units, except amorphous Dow’s application may describe a is in the public interest to solicit (noncrystalline) polyolefins qualifying under subclass of generic olefin fibers with comments on whether it should amend paragraph (j)(1) of this section.’’ 16 CFR 303.7(m). Rule 7(j)(1) defines ‘‘rubber,’’ in part, as ‘‘[a] Rule 7(m) by creating a subclass to manufactured fiber in which the fiber-forming 4 The criteria for establishing a new generic recognize CEF’s characteristics, or substance is comprised of natural or synthetic subcategory are different from the criteria to otherwise address the petition. Before rubber, including the following categories: (1) [a] establish a new generic category. The Commission’s manufactured fiber in which the fiber-forming criteria for granting applications for new generic deciding whether to amend Rule 7, the substance is a hydrocarbon such as natural rubber, names are as follows: (1) The fiber for which a Commission will consider any polyisoprene, polybutadiene, copolymers of dienes generic name is requested must have a chemical comments submitted to the Secretary of composition radically different from other fibers, and hydrocarbons, or amorphous (noncrystalline) the Commission within the above- polyolefins. 16 CFR 303.7(j)(1). In its petition, Dow and that distinctive chemical composition must stated that CEF is not a rubber because CEF fibers result in distinctive physical properties of mentioned comment period. significance to the general public; (2) the fiber must have a low but significant level of crystallinity, be in active commercial use or such use must be III. Dow’s Petition whereas rubber fibers are not crystalline. In immediately foreseen; and (3) the granting of the addition, CEF exhibits much higher tensile set generic name must be of importance to the Dow’s petition and supplemental (lower elastic recovery) than rubber when extended consuming public at large, rather than to a small filings described in detail the CEF fiber. to greater than 100% elongation. group of knowledgeable professionals such as The following subsections are excerpted 3 There, the Commission noted that: where purchasing officers for large Government agencies. substantially verbatim. appropriate, in considering applications for new The Commission believes it is in the public interest generic names for fibers that are of the same general to prevent the proliferation of generic names, and A. CEF’s Chemistry, Structure, and chemical composition as those for which a generic will adhere to a stringent application of these name already has been established, rather than of criteria in consideration of any future applications Manufacturing Process a chemical composition that is radically different, for generic names, and in a systematic review of any According to Dow, CEF is the first but that have distinctive properties of importance generic names previously granted that no longer manufactured olefin fiber founded on to the general public as a result of a new method meet these criteria. The Commission announced of manufacture or their substantially differentiated these criteria on Dec. 11, 1973, 38 FR 34112, and metallocene-based polyolefin elastomer physical characteristics, such as their fiber later clarified and reaffirmed them on Dec. 6, 1995, chemistry. Dow’s CEF fiber is structure, the Commission may allow such fiber to 60 FR 62353, on May 23, 1997, 62 FR 28343, on manufactured using a melt spinning be designated in required information disclosures Jan. 6, 1998, 63 FR 447 and 63 FR 449, on Nov. 17, by either its generic name or, alternatively, by its 2000, 65 FR 69486, and on Feb. 15, 2002, 67 FR process. After spinning, the fiber is ‘‘subclass’’ name. The Commission will consider 7104. crosslinked in order to prevent this disposition when the distinctive feature or 5 In a fourth case under consideration, DuPont dissolution and impart high- features of the subclass fiber make it suitable for has proposed that pursuant to Rule 7(c), 16 CFR temperature dimensional stability. After uses for which other fibers under the established 303.7(c), within the generic category ‘‘polyester,’’ the crosslinking process, the polymer generic name would not be suited, or would be the term ‘‘elasterell-p’’ be used as an alternative significantly less well suited. generic description for a specifically defined chains in the fiber are linked to one 60 FR 62352, 62353 (Dec. 6, 1995). subcategory of polyester fiber. another via covalent bonds.

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The interpolymer 6 in CEF has been B. CEF’s Distinctive Properties as a mechanical integrity above its made from ethylene and, typically, Result of a New Method of Manufacture crystalline melting temperature. In fact, octene in excess of 30 weight percent or Substantially Differentiated Physical Dow asserts that CEF retains its shape using a constrained geometry catalyst, a Characteristics, Such as Fiber Structure at temperatures up to 220°C, well in excess of conventional olefin’s melting member of the metallocene family. The 1. Elasticity catalyst allows precise control of the point, which occurs at or below 170°C. molecular architecture of the polymer, According to Dow, the most notable According to Dow, CEF’s ability to which prior to crosslinking has a narrow characteristic (and of greatest withstand high temperatures has molecular weight distribution. As a importance to consumers) of CEF is its compelling advantages for textile elasticity, which is far superior to that result, the molecules in CEF are very manufacturers who can use more of any conventional olefin fiber. This similar in size and composition to each efficient dye and process methods property is a direct result of CEF’s fiber other. In contrast, Dow states that requiring temperatures in excess of structure. Dow states that CEF’s 170°C. Dow states that CEF also has typical olefin fiber manufactured today favorable stretch (at least five times its advantages for consumers who can results from conventional multi-site original length before breaking) and repeatedly wash, dry, and iron fabrics catalyst technology (such as Ziegler- elasticity (stretching to twice its length containing CEF at typical temperatures Natta catalysts). Consequently, typical and, when released, recovering to (up to 210°C) without destroying CEF’s olefin fiber has a broad compositional within 25 percent of its original length) stretch properties. In contrast, Dow molecular weight distribution, and low are a consequence of its low but asserts that since conventional olefin or no comonomer content. significant level of crystallinity. As a fiber manufactured today loses its shape As a result of CEF’s unique chemical result, CEF can be successfully used in and mechanical integrity at structure, its high comonomer content, clothing applications where stretch is temperatures ranging from 105–170°C, it CEF has lower crystallinity and density desirable. cannot withstand the rigors of high heat than conventional olefin fibers. Unlike In contrast, Dow states that and repeated launderings. conventional olefin fiber where the conventional olefin fiber is highly Consequently, conventional olefin fiber polymer crystals are in lamellae form,7 crystalline, with a degree of crystallinity is not widely used in apparel the crystals in the CEF fiber-forming greater than 50 percent. The crystals of applications today where the consumer substance are in fringe micelle form.8 conventional olefin fiber are in lamellae seeks easy wash and wear care. form, unlike crystals in the CEF fiber- According to Dow, the fringed micellar forming substance, which are in a fringe 3. Chemical Resistance crystalline morphology and the low, but micelle form. As a result, conventional Dow states that CEF’s crosslinked significant, level of crystallinity in CEF olefin fiber manufactured today is stiff polymer network structure also allows impart elastic properties not seen in and inelastic. According to Dow, typical CEF to maintain its integrity in solvents typical olefin fibers. The unique olefin fibers (in their manufactured, that typically dissolve the starting morphology of the CEF polymer results ‘‘drawn,’’ form) exhibit very low polymer. In contrast, according to Dow, in high stretch and elasticity. In elongation before breaking (typically conventional olefin fiber is not contrast, Dow asserts that conventional less than 50%) and, therefore, cannot be crosslinked and, therefore, loses shape olefin fiber, such as drawn used successfully in today’s apparel and mechanical integrity and/or polypropylene fiber, is highly markets for stretch clothing. dissolves above its crystalline melting crystalline and dense. Additionally, temperatures which range up to about 2. High Temperature Stability conventional olefin fiber has low stretch 170°C. and no significant elasticity. Dow states that CEF’s covalent crosslinks connect adjacent polymer 4. Summary of CEF’s Physical chains into a contiguous three- Properties dimensional polymer network. This The physical properties of CEF and crosslinked polymer network structure conventional olefin fiber are allows CEF to maintain its shape and summarized in the table below.

Conventional Property CEF Olefin

Crystallinity, wt% ...... 12–16 ...... >50 Elongation, % ...... >400 ...... <15—200 Breaking Strength (gm/den) ...... >0.9 ...... 1.7–6.8 Initial Modulus ...... 0.3 ...... 34–56 Density (gm/cc) ...... 0.87–0.875 ...... 0.90–0.91 Dissolution Characteristics ...... Does not dissolve ...... Dissolves Temperature Stability ...... Up to >220°C ...... Up to 170°C Manufacturing Method ...... Melt spinning followed Melt spinning by crosslinking.

7 In lamellae form, the polymer chains are folded 8 In fringe micelle form, the polymer chains are 6 Interpolymer refers to polymers prepared by the polymerization of at least two different types of in the crystalline or ordered regions. parallel to each other in the crystalline regions. monomers, typically ethylene and octene.

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C. CEF’s Distinctive Feature(s) Allegedly costs. The amendment simply would the Perry Nuclear Power Plant. This Make the Fiber Suitable for Uses for allow covered companies to use a new security zone is necessary to protect the Which Other Olefin Fibers Would Not generic name for a new fiber that may Perry Nuclear Power Plant from possible Be Suited, or Would Be Significantly not appropriately fit within current sabotage or other subversive acts, Less Well Suited generic names and definitions. The accidents, or possible acts of terrorism. Dow asserted that CEF is suitable for amendment would impose no This security zone is intended to restrict uses for which olefin fibers are not additional labeling requirements. vessel traffic from a portion of Lake Erie. suited, or not as well suited. Dow’s To ensure that no substantial DATES: Comments and related material petition stated: economic impact is being overlooked, must reach the Coast Guard on or before however, the Commission requests Today’s olefin—largely seen in carpet, June 24, 2002. thermal underwear, and socks—does not public comment on the effect of the ADDRESSES: Comments and material offer the consumer stretch or the easy-care proposed amendment on costs, profits, received from the public, as well as characteristics gained through high and competitiveness of, and documents indicated in this preamble as temperature tolerance. To textile mill employment in, small entities. After being available in the docket, are part of producers, CEF enables process economies receiving public comment, the docket CGD09–02–006 and are available and the production of new products with Commission will decide whether for inspection or copying at U.S. Coast atypical stretch and performance properties. preparation of a final regulatory Guard Marine Safety Cleveland, 1055 To the consumer, CEF offers a wider choice flexibility analysis is warranted. in garments containing stretch fabric plus the East Ninth Street, Cleveland, Ohio benefit of easy-care laundering at higher Accordingly, based on available 44126 between 7 a.m. and 4 p.m., temperatures without degradation of the information, the Commission certifies, Monday through Friday, except Federal stretch fiber.9 pursuant to the Regulatory Flexibility holidays. With respect to its commercialization Act (5 U.S.C. 605(b)), that the proposed FOR FURTHER INFORMATION CONTACT: plans, Dow stated that beginning in amendment, if promulgated, would not Lieutenant Junior Grade Allen Turner, 1999, it identified and began working have a significant economic impact on U.S. Coast Guard Marine Safety Office with developmental partners who are a substantial number of small entities. Cleveland, at telephone number (216) leaders in the fiber manufacturing and V. Paperwork Reduction Act 937–0111. apparel industry around the world. SUPPLEMENTARY INFORMATION: Since the second quarter of 2001, CEF This proposed amendment does not has been successfully made on constitute a ‘‘collection of information’’ Request for Comments under the Paperwork Reduction Act of commercial-scale spinning equipment, We encourage you to participate in 1995 (PL 104–13, 109 Stat. 163) and its with resulting quantities subsequently this rulemaking by submitting implementing regulations. (5 CFR 1320 produced and used in a wide range of comments and related material. If you fabrics, including both knits and et seq.) The collection of information do so, please include your name and wovens. These fabrics have been used to imposed by the procedures for address, identify the docket number for make a variety of goods, most notably establishing generic names (16 CFR this rulemaking (CGD09–02–006), for the apparel market. The market 303.8) has been submitted to OMB and indicate the specific section of this testing process of garments with leading has been assigned control number 3084– document to which each comment retailers is presently underway, with 0101. applies, and give the reason for each completion expected within the near comment. Please submit all comments future. Dow expects commercialization List of Subjects in 16 CFR Part 303 and related material in an unbound of CEF to begin at the end of the second Labeling, Textile, Trade Practices. format, no larger than 81⁄2 by 11 inches, quarter of 2002. In effect, therefore, Dow Authority: Sec. 7(c) of the Textile Fiber suitable for copying. If you would like has argued that granting the petition Products Identification Act (15 U.S.C. 70e(c)). would facilitate the use of CEF fiber in to submit comments and related By direction of the Commission. consumer applications, and using a new materials, please enclose a stamped, generic term (like lastol) would help Donald S. Clark, self-addressed postcard or envelope. We consumers identify products made from Secretary. will consider all comments and material CEF. Thus, Dow has maintained that a [FR Doc. 02–13151 Filed 5–23–02; 8:45 am] received during the comment period. We may change this proposed rule in new generic fiber subclass name would BILLING CODE 6750–01–P be important to the public at large, not view of them. You may mail comments just knowledgeable professionals. and related material to U.S. Coast Guard Marine Safety Office Cleveland, 1155 DEPARTMENT OF TRANSPORTATION IV. Regulatory Flexibility Act East 9th Street, Cleveland, OH 44115. The provisions of the Regulatory Coast Guard Marine Safety Office Cleveland Flexibility Act relating to an initial maintains the public docket for this regulatory analysis (5 U.S.C. 603–604) 33 CFR Part 165 rulemaking. Comments and material are not applicable to this proposal, received from the public, as well as because the Commission believes that [CGD09–02–006] documents indicated in this preamble as being available in the docket, will the amendment, if promulgated, will not RIN 2115–AA97 have a significant economic impact on become part of this docket and will be a substantial number of small entities. Security Zone; Lake Erie, Perry, Ohio available for inspection or copying at The Commission has tentatively reached Marine Safety Office Cleveland between this conclusion with respect to the AGENCY: Coast Guard, DOT. 7 a.m. and 4 p.m., Monday through proposed amendment, because the ACTION: Notice of proposed rulemaking. Friday, except Federal holidays. amendment would impose no Background and Purpose additional obligations, penalties or SUMMARY: The Coast Guard proposes to establish a permanent security zone on On September 11, 2001, the United 9 See Dow’s petition dated March 19, 2002, at the navigable waters of Lake Erie in the States was the target of coordinated page 16. Captain of the Port Zone Cleveland for attacks by international terrorists

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resulting in catastrophic loss of life, the organizations that are independently Unfunded Mandates Reform Act destruction of the World Trade Center, owned and operated and are not The Unfunded Mandates Reform Act and significant damage to the Pentagon. dominant in their fields, and of 1995 (2 U.S.C. 1531–1538) requires National security and intelligence governmental jurisdictions with Federal agencies to assess the effects of officials warn that future terrorists populations of less than 50,000. their discretionary regulatory actions. In attacks are likely. This regulation The Coast Guard certifies under 5 particular, the Act addresses actions proposes to establish a permanent U.S.C. 605(b) that this proposed rule that may result in the expenditure by a security zone for the Perry Nuclear would not have a significant economic State, local, or tribal government, in the Power Plant. The security zone consists impact on a substantial number of small aggregate, or by the private sector of of all navigable waters of Lake Erie entities. $100,000,000 or more in any one year. bound by a line drawn between the If you think that your business, Though this proposed rule would not following coordinates: beginning at result in such an expenditure, we do 41°48.187′ N, 081°08.818′ W; due north organization, or governmental ° ′ ° ′ jurisdiction qualifies as a small entity discuss the effects of this rule elsewhere to 41 48.7 N, 081 08.818 W; due east in this preamble. to 41°48.7′ N, 081°08.455′ W; due south and that this rule would have a to the south shore of Lake Erie at significant economic impact on it, Taking of Private Property please submit a comment (see 41°48.231′ N, 081°08.455′ W; thence This proposed rule would not effect a ADDRESSES) explaining why you think it westerly following the shoreline back to taking of private property or otherwise qualifies and how and to what degree the beginning. These coordinates are have taking implications under this rule would economically affect it. based upon North American Datum Executive Order 12630, Governmental 1983 (NAD 83). Entry into, transit Assistance for Small Entities Actions and Interference with through or anchoring within this Constitutionally Protected Property security zone is prohibited unless Under section 213(a) of the Small Rights. authorized by the Captain of the Port Business Regulatory Enforcement Cleveland or his designated on-scene Fairness Act of 1996 (Public Law 104– Civil Justice Reform representative. 121), we offered to assist small entities This proposed rule meets applicable in understanding the rule so that they standards in sections 3(a) and 3(b)(2) of Discussion of Proposed Rule could better evaluate its effects on them Executive Order 12988, Civil Justice Following the catastrophic nature and and participate in the rulemaking Reform, to minimize litigation, extent of damage realized from the process. If the rule would affect your eliminate ambiguity, and reduce attacks of September 11, this proposed small business, organization, or burden. rulemaking is necessary to protect the governmental jurisdiction and you have national security interests of the United questions concerning its provisions or Protection of Children States against potential future attacks. options for compliance, please contact We have analyzed this proposed rule On October 12, 2001 we published a Marine Safety Office Cleveland (see under Executive Order 13045, temporary final rule establishing a ADDRESSES.) Protection of Children from security zone on the waters around Small businesses may send comments Environmental Health Risks and Safety Perry Nuclear Power Plant (66 FR on the actions of Federal employees Risks. This rule is not an economically 52043). The current rulemaking who enforce, or otherwise determine significant rule and would not create an proposes to establish a permanent compliance with, Federal regulations to environmental risk to health or risk to security zone in place of that temporary the Small Business and Agriculture safety that might disproportionately security zone. The size of the zone Regulatory Enforcement Ombudsman affect children. currently being proposed, however, is and the Regional Small Business Indian Tribal Governments smaller than that of the original Regulatory Fairness Boards. The This proposed rule does not have temporary security zone. Ombudsman evaluates these actions tribal implications under Executive annually and rates each agency’s Regulatory Evaluation Order 13175, Consultation and responsiveness to small business. If you This proposed rule is not a Coordination with Indian Tribal wish to comment on actions by ‘‘significant regulatory action’’ under Governments, because it would not have employees of the Coast Guard, call 1– section 3(f) of Executive Order 12866, a substantial direct effect on one or 888–REG–FAIR (1–888–734–3247). Regulatory Planning and Review, and more Indian tribes, on the relationship does not require an assessment of Collection of Information between the Federal Government and potential costs and benefits under Indian tribes, or on the distribution of section 6(a)(3) of that Order. The Office This proposed rule would call for no power and responsibilities between the of Management and Budget has not new collection of information under the Federal Government and Indian tribes. reviewed it under that Order. It is not Paperwork Reduction Act of 1995 (44 Energy Effects ‘‘significant’’ under the regulatory U.S.C. 3501–3520.). policies and procedures of the Federalism We have analyzed this proposed rule Department of Transportation (DOT) (44 under Executive Order 13211, Actions FR 11040, February 26, 1979). A rule has implications for federalism Concerning Regulations That under Executive Order 13132, Significantly Affect Energy Supply, Small Entities Federalism, if it has a substantial direct Distribution, or Use. We have Under the Regulatory Flexibility Act effect on State or local governments and determined that it is not a ‘‘significant (5 U.S.C. 601–612), we have considered would either preempt State law or energy action’’ under that order because whether this proposed rule would have impose a substantial direct cost of it is not a ‘‘significant regulatory action’’ a significant economic impact on a compliance on them. We have analyzed under Executive Order 12866 and is not substantial number of small entities. this proposed rule under that Order and likely to have a significant adverse effect The term ‘‘small entities’’ comprises have determined that it does not have on the supply, distribution, or use of small businesses, not-for-profit implications for federalism. energy. It has not been designated by the

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Administrator of the Office of Dated: May 20, 2002. available on request from Daniel T. Information and Regulatory Affairs as a R.J. Perry, Furlong, Executive Director, Mid- significant energy action. Therefore, it Commander, U.S. Coast Guard, Captain of Atlantic Fishery Management Council, does not require a Statement of Energy the Port, MSO Cleveland. 300 South New Street, Dover, DE Effects under Executive Order 13211. [FR Doc. 02–13137 Filed 5–23–02; 8:45 am] 19904–6790. The EA/RIR/IRFA is BILLING CODE 4910–15–P accessible via the Internet at http:/ Environment www.nero.gov/ro/doc/nr.htm. Comments on Framework 2 should be The Coast Guard considered the DEPARTMENT OF COMMERCE sent to: Patricia A. Kurkul, Regional environmental impact of this regulation Administrator, Northeast Regional and concluded that, under figure 2–1, Office, NMFS, One Blackburn Drive, paragraph (34)(g) of Commandant National Oceanic and Atmospheric Administration Gloucester, MA 01930–2298. Please Instruction M16475.1C, it is mark the envelope, ‘‘Comments-SMB categorically excluded from further 50 CFR Part 648 Framework Adjustment 2.’’ Comments environmental documentation. A also may be sent via facsimile (fax) to ‘‘Categorical Exclusion Determination’’ [Docket No. 020508113–2113–01; I.D. 978-281-9135. Comments will not be is available in the docket for inspection 090501D] accepted if submitted via e-mail or or copying where indicated under RIN 0648–AP12 Internet. ADDRESSES. FOR FURTHER INFORMATION CONTACT: Paul Fisheries of the Northeastern United List of Subjects in 33 CFR Part 165 H. Jones, Fishery Policy Analyst, 978– States; Atlantic Mackerel, Squid and 281–9273, fax 978–281–9135, e-mail Harbors, Marine safety, Navigation Butterfish Fisheries; Framework [email protected]. (water), Reporting and recordkeeping Adjustment 2 SUPPLEMENTARY INFORMATION: In 1997, requirements, Security measures, AGENCY: National Marine Fisheries Amendment 5 to the FMP established a Waterways. Service (NMFS), National Oceanic and limited entry program for the Illex squid For the reasons set out in the Atmospheric Administration (NOAA), fishery in response to a concern that preamble, the Coast Guard proposes to Commerce. fishing capacity could otherwise expand amend 33 CFR part 165 as follows: ACTION: Proposed rule, request for to over exploit the stock. At the time the comments. program was established, there were PART 165—REGULATED NAVIGATION concerns that the capacity of the limited AREAS AND LIMITED ACCESS AREAS SUMMARY: NMFS proposes measures entry vessels might prove, over time, to contained in Framework Adjustment 2 be insufficient to fully exploit the 1. The authority citation for part 165 (Framework 2) to the Atlantic Mackerel, annual quota. In response to this continues to read as follows: Squid, and Butterfish Fishery concern, a 5–year sunset provision was Management Plan (FMP). This action placed on the Illex squid limited entry Authority: 33 U.S.C. 1231; 50 U.S.C. 191, would extend the limited entry program program, and it is currently scheduled 33 CFR 1.05–1(g), 6.04–1, 6.04–6, 160.5; 49 for the Illex squid fishery for an CFR 1.46. to end July 1, 2002. However, in recent additional year; modify the Loligo squid years the limited entry fleet has § 165.T09–111 [Removed] overfishing definition and control rule; demonstrated that it has sufficient allow for the roll-over of the annual capacity to harvest the long-term 2. Remove § 165.T09–111. specifications for these fisheries (with potential yield from this fishery. The 3. Add § 165.912 to read as follows: the exception of total allowable landings Mid-Atlantic Fishery Management of foreign fishing (TALFF)) in the event Council (Council) must prepare an § 165.912 Security Zone; Lake Erie, Perry, annual specifications are not published amendment to the FMP to evaluate OH. prior to the start of the fishing year; and whether or not the limited entry (a) Location: The following area is a allow Loligo squid specifications to be program should be extended security zone: all navigable waters of set for up to 3 years, subject to annual permanently. In the meantime, this Lake Erie bounded by a line drawn review. NMFS has disapproved the action would extend the Illex squid between the following coordinates proposed framework measure to allow moratorium through July 1, 2003, to beginning at 41°48.187′ N, 081°08.818′ Illex squid vessels an exemption from prevent overcapitalization while the the Loligo squid trip limit during an W; then due north to 41°48.7′ N, amendment is being prepared and August or September closure of the 081°08.818′ W; then due east to 41°48.7′ considered by the Council. This directed Loligo squid fishery. This N, 081°08.455′ W; then due south to the extension complies with the criteria in action is necessary to address issues and south shore of Lake Erie at 41°48.231′ N, section 303(b)(6) of the Magnuson- problems that have developed relative 081°08.455′ W; thence westerly Stevens Fishery Conservation and to the management of these fisheries following the shoreline back to the Management Act. The extension will and is intended to further the objectives beginning (NAD 83). allow the Council additional time to of the FMP and the Magnuson-Stevens consider long-term management for the (b) Regulations. In accordance with Fishery Conservation and Management Illex squid fishery, including the limited the general regulations in § 165.33 of Act (Magnuson-Stevens Act). entry program. Vessels that took small this part, entry into this zone is DATES: Public comments must be quantities of Illex squid in the past may prohibited unless authorized by the received no later than 5 p.m., eastern continue to do so under the incidental Coast Guard Captain of the Port standard time, on June 10, 2002. catch provision of the FMP. Cleveland, or the designated on-scene ADDRESSES: Copies of Framework 2, This action would also authorize the representative. including the Environmental roll-over of the annual specifications for (c) Authority. In addition to 33 U.S.C. Assessment (EA) and Regulatory Impact the Atlantic mackerel, squid, and 1231 and 50 U.S.C. 191, the authority Review (RIR)/Initial Regulatory butterfish fisheries. In recent years, for this section includes 33 U.S.C. 1226. Flexibility Analysis (IRFA), are publication of the annual specifications

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for those fisheries has occurred after the 8, requiring an F of zero at 1/2Bmsy was limit during an August or September start of the fishing year on January 1, too conservative. closure of the directed Loligo squid resulting in inefficient management and This proposed action would allow fishery. The proposed measure would industry uncertainty. In particular, late specification of an annual quota have allowed vessels fishing in the publication has affected business associated with a target F of up to 90 directed Illex squid fishery during a entities interested in conducting Joint percent of Fmsy to be specified if stock closure of the Loligo fishery to land Venture Processing (JVP) operations for biomass is greater than one-half Bmsy. If Loligo squid harvested seaward of the Atlantic mackerel, because such stock biomass falls below, or is expected 50–fathom (91–m) curve in an amount to fall below, one-half B , measures to operations cannot be authorized until msy not to exceed 10 percent of the total control fishing mortality would be there is a final rule that includes a JVP weight of Illex squid on board the implemented to insure that the stock is allocation. This action would allow the vessel. Currently, all vessels are limited rebuilt to Bmsyin a time period annual Atlantic mackerel, squid, and to an incidental catch allowance of butterfish specifications from the consistent with the requirements of the Magnuson-Stevens Act. NMFS is 2,500 lb (1,134 kg) of Loligo squid per previous fishing year to roll-over into publishing the proposed definition and trip during a closure of the directed the next fishing year (excluding also reviewing it in light of the updated Loligo fishery. TALFF), in the event that annual Loligo stock assessment conducted in specifications for that year have not This provision is being disapproved at January 2002. the proposed rule stage because it has been published. The rolled-over This action also proposes to allow specifications would be superceded by been found to be inconsistent with maximum optimum yield (Max OY), national standards 2 and 7 under the the publication of the current year’s allowable biological catch (ABC), annual specifications. Magnuson-Stevens Act. Because this optimum yield (OY) and domestic action would limit vessels to a Loligo annual harvest (DAH) for Loligo squid While the primary components of the squid bycatch of 10 percent of the to be specified for up to 3 years. If the overfishing definition for Loligo squid amount of Illex squid on board the annual review conducted by the Council (the maximum fishing mortality rate vessel, and because of the high-volume threshold and the minimum biomass through its Monitoring Committee nature of the Illex fishery, NMFS threshold) remain unchanged, this indicates that it is necessary, such a believes it would be impossible to proposed action would modify the multi-year specification would be enforce the proposed provision. In control rules that guide the Council in revised in the annual specification addition, under this provision, vessels making harvest recommendations based process. upon those definitions. The fishing This action also proposes an outline would only be permitted to retain an mortality rate (F) control rule adopted for a timeframe to be followed for in- increased bycatch of Loligo squid while for Loligo squid in Amendment 8 to the season adjustments to the annual directing on Illex squid seaward of the FMP specified that the target fishing specifications for Loligo squid. The 50–fathom (91–m) curve. However, it Council’s Monitoring Committee will would be difficult for enforcement mortality rate (Fmsy) must be reduced to zero if biomass falls below 50 percent of meet in late spring each year to review agents to determine if a vessel’s Loligo available NEFSC survey data and to the biomass target (B ). The target squid bycatch was legally taken, or msy develop recommendations for the fishing mortality rate increases linearly occurred landward of the 50–fathom (9– annual harvest for the following year. In to 75 percent of F as biomass m) curve. Such a provision would create msy addition, at that meeting, the increases to B . However, the 29th significant enforcement costs and, msy Monitoring Committee will make Stock Assessment Workshop (SAW 29) therefore, would be inconsistent with recommendations regarding inseason indicated that the control rule was not national standard 7. adjustments to the annual Loligo squid appropriate for the stock, and that the specifications for consideration by the Additionally, the Council did not target F of zero at 50 percent of the Atlantic Mackerel, Squid, and Butterfish consider the best scientific data biomass target could be overly Committee and the Council. Based on available to it when it defined the conservative. SAW 29 concluded that an evaluation of the most recent NEFSC exemption measure; thus the measure the apparent resilience of the stock is spring and fall trawl survey data, the has been found to be inconsistent with high, suggesting that it can rebuild OY, DAH, and ABC specifications may national standard 2. The data examined quickly from low stock sizes at low to be adjusted to be consistent with the by NMFS indicates that there are factors moderate F’s. Estimates of biomass control rule. Upon review of the contributing to the Loligo squid bycatch based on NMFS’ Northeast Fisheries recommendations from the Council, the that were not considered by the Council. Science Center (NEFSC) fall 1999, Administrator, Northeast Region, NMFS NMFS is also concerned that the spring 2000, and fall 2000 survey (Regional Administrator) may make analysis of the proposed measure did indices for Loligo squid indicate that the inseason adjustments through not use a sufficiently long time-series of stock is currently at or near Bmsy. The publication of notification in the stock is also no longer listed as data to account for the fact that the Federal Register, to be followed by a overlap of the Illex and Loligo squid overfished in NMFS’ Report to 30–day comment period, as specified in Congress: Status of the Fisheries of the stocks is quite variable from year to the current regulations. Inseason year. Preliminary review of available United States (January 2001). However, adjustment actions may include projections of the 29th SAW indicated data also shows that the Council increases or decreases in the OY, DAH analysis may have under-estimated the that if the Loligo quid stock were and ABC specifications and may result amount of Loligo squid that could be overfished, the biomass could be rebuilt in opening or closing the directed c landed as incidental catch by vessels from the minimum biomass threshold ( fishery for Loligo squid. Bmsy) to levels approximating Bmsy in as other than those fishing under the Illex little as 3 years, if F were reduced to 75 Disapproved Measure squid exemption. As a result, the percent of Fmsy. Based on the above NMFS has disapproved the proposed analysis of the measure appears not to information, the Council concluded that measure to allow Illex squid vessels an properly assess the impact on the Loligo the control rule adopted in Amendment exemption from the Loligo squid trip squid quota management program.

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Classification expected to fall below the minimum Presumably, other vessels entering the c This proposed rule has been biomass threshold ( Bmsy), measures fishery would experience gains in determined to be not significant for would be implemented to rebuild the revenues. Under alternative 3, the IRFA review purposes of Executive Order 12866. stock to Bmsy in 3 to 5 years; (2) an The Council prepared an IRFA that annual quota specified consistent with a of revenue impacts presumed that vessel describes the economic impacts this target F of up to 90 percent Fmsy if revenues derived from landing Illex would be reduced by 50 percent due to proposed rule, if adopted, would have stock biomass is greater than the c an assumed increase in effort of 50 on small entities. A description of the minimum biomass threshold ( Bmsy). If percent. A total of 109 vessels were action, why it is being considered, and stock biomass was below the minimum c projected to be impacted by revenue the legal basis for this action are biomass threshold ( Bmsy), measures would be implemented to rebuild the losses that ranged from less than 5 contained at in the SUPPLEMENTARY stock to B in 3 to 10 years, but no percent for 84 vessels, to a maximum of INFORMATION section of the preamble. msy 30–39 percent for one vessel. There This proposed rule does not duplicate, longer than 10 years; (3) maintain were no impacted vessels home-ported overlap, or conflict with other Federal current control rule and quota setting procedure for Loligo (no action/status in Maryland, New Hampshire, or rules. There are no new reporting or quo). Virginia; a high of 11 vessels had home recordkeeping requirements contained ports in New Jersey. Others were in in the Preferred Alternatives or any of Illex Moratorium Extension Massachusetts, Maine, Rhode Island, the alternatives considered for this The proposed action would extend and North Carolina. Presumably, other action. A copy of the complete IRFA can the moratorium on entry of new vessels vessels entering the fishery would be obtained from the Northeast Regional into the Illex fishery for one year; experience gains in revenues. Office of NMFS (see ADDRESSES) or via therefore no impact is expected on Under alternative 4, the IRFA review the Internet at http:/www.nero.nmfs.gov. vessels in the fishery in 2002 (and the of revenue impacts presumed that vessel A summary of the analysis follows. first half of 2003), compared to revenues derived from landing Illex In addition to the measures described individual vessel revenues in 2001. The would be reduced by 25 percent due to above, the Council considered several Council assumed that the market and an assumed increase in effort of 25 alternatives. The non-preferred prices are expected to remain stable. percent. A total of 109 vessels were Illexpermit alternatives considered Any changes in individual vessel projected to be impacted by revenue were: (1) To extend the moratorium on revenues would be the result of factors losses that ranged from less than 5 entry to the Illex fishery for an outside the scope of the moratorium percent, for 88 vessels, to a maximum of additional 5 years (through June 30, (e.g., change in fishing practices for 10-19 percent for 8 vessels. The number 2007); and (2) to allow the moratorium individual vessels, or changes in of impacted vessels by home state on entry to the Illex fishery to expire in abundance and distribution of Illex ranged from none in Maryland, New 2002 (no action). squid). Hampshire, New York, and Virginia, to The alternative specification measures New vessels entering the fishery a high of 11 in New Jersey. Other were: (1) If annual specifications are not would limit per vessel share of the Illex impacted vessels were home ported in published prior to the start of the fishing squid quota and reduce revenues for the Massachusetts, Maine, Rhode Island, year, the fisheries would operate existing moratorium vessels and North Carolina. Presumably, other without specifications and Joint proportionally. Computing the negative vessels entering the fishery would Ventures could not be conducted until impacts of revenue losses for the experience gains in revenues. specifications were published (no existing moratorium vessels is action/status quo); (2) if annual impossible due to the redirection of Specifications Process specifications are not published prior to effort into the Illex squid fishery. The only alternative considered the start of the fishing year, a set of Therefore, the Council decided to concerning quota specifications that default specifications would apply until assume three scenarios that presumed would be expected to change gross the specifications are published; (3) if revenues derived from landings of Illex vessel revenues would be the option annual specifications are not published squid would be reduced by 75, 50, and that would close the fisheries if the final prior to the start of the fishing year, the 25 percent due to an assumed increase specifications are not published by the fisheries would be closed until the final in vessels that have not participated in start of the fishing year. This measure specifications are published; (4) if the Illex squid fishery. would have significant negative annual specifications for Atlantic Under alternative 2, the IRFA review economic consequences for vessels mackerel are not published prior to the of revenue impacts examined the operating in the Atlantic mackerel, start of the fishing year, the previous landings of vessels in the existing Loligo and butterfish fisheries because year’s specifications for Atlantic moratorium fishery and presumed that landings of these three species would be mackerel (excluding TALFF) would revenues derived from landing Illex for prohibited until NMFS publishes the apply, until final specifications are these vessels would be reduced by 75 final rule for new specifications and published; and (5) if annual percent due to an assumed increase in significant landings occur early in the specifications for Atlantic mackerel are effort of 75 percent. A total of 109 fishing year. The IRFA analysis assumed not published prior to the start of the vessels were projected to be impacted that these fisheries would most likely be fishing year, a set of default by revenue losses that ranged from less closed during the months of January and specifications (excluding TALFF) would than 5 percent for 79 vessels, to a February under this alternative. The apply until the specifications are maximum of 40–49 percent for 2 total value of the landings of these three published. vessels. There were no impacted vessels species during the first 2 months of The alternative Loligo overfishing home-ported in Maryland, New 1999 represented about 20 percent of definitions were: (1) An annual quota Hampshire, or Virginia; a high of 15 the annual revenue generated for all specified consistent with a target F of up vessels had home ports in New Jersey. three species in 1999. For Atlantic to 90 percent Fmsyif stock biomass is Other impacted vessels were home mackerel, 291 vessels landed 12.1 greater than the minimum biomass ported in Massachusetts, Rhode Island, million lb of mackerel valued at $1.7 threshold (c Bmsy). If stock biomass was New York, and North Carolina. million. A closure in January and

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February would result in a loss of List of Subjects in 50 CFR Part 648 Loligo squid as specified in paragraph mackerel revenue of $5,842 per vessel Fisheries, Fishing, Reporting and (e) of this section. under this alternative. For Loligo, 281 recordkeeping requirements. * * * * * vessels landed 6.5 million lb of Loligo Dated: May 22, 2002. (d) * * * valued at $5.1 million. A closure in (1) The Squid, Mackerel, and Rebecca Lent, January and February would result in a Butterfish Committee will review the loss of Loligo revenue of $18,361 per Deputy Assistant Administrator for recommendations of the Monitoring vessel under this alternative. For Regulatory Programs, National Marine Fisheries Service. Committee. Based on these butterfish, 228 vessels landed 1.4 recommendations and any public million lb of butterfish valued at $0.9 For the reasons set out in the comment received thereon, the Squid, million. A closure in January and preamble, 50 CFR part 648 is proposed Mackerel, and Butterfish Committee February would result in a loss of to be amended as follows: must recommend to the MAFMC butterfish revenue of $4,067 per vessel appropriate specifications and any PART 648—FISHERIES OF THE under this alternative. This measure measures necessary to assure that the NORTHEASTERN UNITED STATES would be expected to have little or no specifications will not be exceeded. The economic impact on the Illex fishery 1. The authority citation for part 648 MAFMC will review these since the directed fishery occurs during continues to read as follows: recommendations and, based on the the summer. recommendations and any public Authority: 16 U.S.C. 1801 et seq. comment received thereon, must Loligo Overfishing Definition 2. In § 648.4, paragraph (a)(5)(i), the recommend to the Regional introductory text is revised to read as Administrator appropriate None of the alternatives considered follows: concerning the Loligo control rule and specifications and any measures in-season adjustment are expected to § 648.4 Vessel permits. necessary to assure that the change gross revenues. Therefore, the (a) * * * specifications will not be exceeded. The IRFA concluded that neither the (5) * * * MAFMC’s recommendations must preferred nor the non-preferred (i) Loligo squid/butterfish and Illex include supporting documentation, as alternative represents catch constraints squid moratorium permits. (Illex squid appropriate, concerning the on vessels in these fisheries in aggregate moratorium is applicable from July 1, environmental, economic, and social or individually. Without such catch 1997, until July 1, 2003).* * * impacts of the recommendations. The constraints, there is no impact on * * * * * Regional Administrator will review the revenues. recommendations and, on or about 3. In § 648.20, paragraph (b) is revised November 1 of each year, will publish However, the no action alternative to read as follows: notification in the Federal Register could have severe economic § 648.20 Maximum optimum yields (OYs). proposing specifications and any consequences if the stock biomass falls measures necessary to assure that the c * * * * * below Bmsy. If the Council had specifications will not be exceeded and followed the control rule implemented (b) Loligo—the catch associated with a fishing mortality rate of F , or the providing a 30–day public comment in Amendment 8 for the 2000 fishery, msy best available proxy for Fmsy. period. If the proposed specifications the Loligo fishery would have been differ from those recommended by the * * * * * closed for the entire year. Thus failure MAFMC, the reasons for any differences to replace the control rule could have 4. In § 648.21, paragraphs (a)(1) and must be clearly stated and the revised unwarranted negative economic and (d)(1) are revised and paragraphs (a)(4) specifications must satisfy the criteria social consequences. The best example and (a)(5) are added to read as follows: set forth in this section. The MAFMC’s is for fishing year 2000. If the Council § 648.21 Procedures for determining initial recommendations will be available for had followed the control rule, the annual amounts. inspection at the office of the Regional fishery would have been closed, with (a) * * * Administrator during the public significant impacts in participant (1) Initial OY (IOY), including comment period. If the annual vessels. Preliminary NMFS data show research quota (RQ), domestic annual specifications for squid, mackerel, and that 525 vessels landed 34.9 million lb harvest (DAH), and domestic annual butterfish are not published in the of Loligo in 2000, valued at $27.3 processing (DAP) for Illex squid; Federal Register prior to the start of the million. A complete closure of the * * * * * fishing year, the previous year’s annual fishery in 2000 would have resulted in (4) Initial OY (IOY), including specifications, excluding specifications an economic loss of $52,000 per vessel research quota (RQ), domestic annual of TALFF, will remain in effect. The due to loss of Loligo revenue. harvest (DAH), and domestic annual previous year’s specifications will be It has been determined that this processing (DAP) for Loligo squid, superceded as of the effective date of the proposed rule does not contain policies which, subject to annual review, may be final rule implementing the current with federalism implications as that specified for a period of up to 3 years; year’s annual specifications. term is defined in Executive Order (5) Inseason adjustment, upward or [FR Doc. 02–13240 Filed 5–22–02; 2:44 pm] 13132. downward, to the specifications for BILLING CODE 3510–22–S

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Notices Federal Register Vol. 67, No. 101

Friday, May 24, 2002

This section of the FEDERAL REGISTER to make recommendations to USDA Regulatory Analysis and Development, contains documents other than rules or concerning establishment and revision PPD, APHIS, Station 3C71, 4700 River proposed rules that are applicable to the of the standards. The marketing of U.S. Road Unit 118, Riverdale, MD 20737– public. Notices of hearings and investigations, cotton is supported and enhanced 1238. Please state that your comment committee meetings, agency decisions and through the committee’s participation in refers to Docket No. 02–023–1. If you rulings, delegations of authority, filing of petitions and applications and agency the development of standards for U.S. use e-mail, address your comment to statements of organization and functions are Upland Cotton. [email protected]. Your examples of documents appearing in this Thursday June 13, 2002, at 9 a.m. comment must be contained in the body section. with opening remarks and introductions of your message; do not send attached the Advisory Committee convenes and files. Please include your name and the standards review and approval address in your message and ‘‘Docket DEPARTMENT OF AGRICULTURE process is initiated. Friday June 14, No. 02–023–1’’ on the subject line. 2002, at 9 a.m. the Committee You may read any comments that we Agricultural Marketing Service reconvenes for the drawing of sets for receive on Docket No. 02–023–1 in our [Doc. #CN–02–003] the Arbitration Boards, discussion of reading room. The reading room is proposals, and concludes the matching located in room 1141 of the USDA Advisory Committee on Universal and approval process of remaining South Building, 14th Street and Cotton Standards; Meeting universal standards. Independence Avenue SW., Washington, DC. Normal reading room Dated: May 20, 2002. AGENCY: Agricultural Marketing Service, hours are 8 a.m. to 4:30 p.m., Monday USDA. Kenneth C. Clayton, through Friday, except holidays. To be ACTION: Notice of meeting. Acting Administrator, Agricultural Marketing sure someone is there to help you, Service. please call (202) 690–2817 before SUMMARY: In accordance with the [FR Doc. 02–13123 Filed 5–23–02; 8:45 am] coming. Federal Advisory Committee Act, as BILLING CODE 3410–02–M APHIS documents published in the amended, the Agricultural Marketing Federal Register, and related Service (AMS) announces a forthcoming information, including the names of meeting of the Advisory Committee on DEPARTMENT OF AGRICULTURE organizations and individuals who have Universal Cotton Standards. commented on APHIS rules, are DATES: The meeting dates are: June 13, Animal and Plant Health Inspection Service available on the Internet at http:// 2002, at 9 a.m. to 5 p.m., Memphis, www.aphis.usda.gov/ppd/rad/ Tennessee. June 14, 2002, at 9 a.m. until [Docket No. 02–023–2] webrepor.html. the review is complete, Memphis, Tennessee. Risk Management Analysis for the FOR FURTHER INFORMATION CONTACT: Dr. Ron A. Sequeira, Center for Plant Health ADDRESSES: The meeting locations are: Importation of Clementines From Spain Science and Technology, PPQ, APHIS, June 13 at Peabody Hotel, 149 Union 1017 Main Campus Drive, Suite 2500, Avenue, Memphis, Tennessee 38103. AGENCY: Animal and Plant Health Raleigh, NC 27606–5202; (919) 513– June 14 at USDA, AMS, Cotton Inspection Service, USDA. 2663. Programs offices at 3275 Applying Road, ACTION: Notice of reopening and SUPPLEMENTARY INFORMATION: Memphis, Tennessee 38133. The extension of comment period. meeting is open to the public. Background SUMMARY: We are reopening and FOR FURTHER INFORMATION CONTACT: Mail On April 16, 2002, we published in extending the comment period for a risk comments to James Knowlton, the Federal Register (67 FR 18578– management analysis prepared by the Standardization and Engineering 18579, Docket No. 02–023–1) a notice Animal and Plant Health Inspection Branch, Cotton Programs, AMS, USDA, advising the public that a risk Service relative to a proposed rule 3275 Applying Road Memphis, management analysis has been prepared currently under consideration that Tennessee 38133, or send comments by by the Animal and Plant Health would allow the importation of electronic mail to: Inspection Service relative to a clementines from Spain to resume. This [email protected]. proposed rule currently under action will allow interested persons SUPPLEMENTARY INFORMATION: The consideration that would allow the additional time to prepare and submit committee includes representatives of importation of clementines from Spain comments. all segments of the U.S. cotton industry to resume. In that notice, we stated that and the twenty-four overseas DATES: We will consider all comments we were making the risk management associations that are signatories to the we receive on the risk management analysis available to the public for Universal Cotton Standards Agreement, analysis that are postmarked, delivered, review and comment. which is authorized under the United or e-mailed by June 14, 2002. Comments on the risk management States Cotton Standards Act (7 U.S.C. ADDRESSES: You may submit comments analysis were required to be received on 51–65). The purpose of the meeting is by postal mail/commercial delivery or or before May 16, 2002. We are for the Committee to review the by e-mail. If you use postal mail/ reopening and extending the comment American Upland Cotton Standards, commercial delivery, please send four period on Docket No. 02–023–1 until which are prepared by the United States copies of your comment (an original and June 14, 2002. This action will allow Department of Agriculture (USDA), and three copies) to: Docket No. 02–023–1, interested persons additional time to

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prepare and submit comments. We will known to be interested and affected by Bridger-Teton National Forest also consider all comments received a specific decision. Bridger-Teton Forest Supervisor between May 17, 2002 (the day after the The legal notice is to identify: the decisions: Casper Star-Tribune, close of the original comment period) decision by title and subject matter; the Casper, Wyoming and the date of this notice. date of the decision; the name and title Jackson District Ranger decisions: Authority: 7 U.S.C. 166, 450, 7701–7772; of the official making the decision; and Casper Star-Tribune, Casper, 21 U.S.C. 136 and 136a; 7 CFR 2.22, 2.80, and how to obtain copies of the decision. In Wyoming 371.3. addition, the notice is to state the date Buffalo District Ranger decisions: the appeal period begins which is the Done in Washington, DC, this 21st day of Casper Star-Tribune, Casper, May 2002. day following publication of the notice. Wyoming The timeframe for appeal shall be Peter Fernandez, Big Piney District Ranger decisions: based on the date of publication of the Casper Star-Tribune, Casper, Acting Administrator, Animal and Plant notice in the first (principal) newspaper Health Inspection Service. Wyoming listed for each unit. Pinedale District Ranger decisions: [FR Doc. 02–13067 Filed 5–21–02; 12:05 pm] The newspapers to be used are as Casper Star-Tribune, Casper, BILLING CODE 3410–34–P follows: Wyoming Regional Forester, Intermountain Greys River District Ranger decisions: DEPARTMENT OF AGRICULTURE Region Casper Star-Tribune, Casper, Wyoming For decisions made by the Regional Forest Service Kemmerer District Ranger decisions: Forester affecting National Forests in Casper Star-Tribune, Casper, Newspapers Used for Publication of Idaho: The Idaho Statesman, Boise, Wyoming Legal Notice of Appealable Decisions Idaho For decisions made by the Regional Caribou-Targhee National Forest for the Intermountain Region; Utah, Forester affecting National Forests in Idaho, Nevada, and Wyoming Caribou-Targhee Forest Supervisor Nevada: The Reno Gazette-Journal, decisions for the Caribou portion: AGENCY: Forest Service, USDA. Reno, Nevada Idaho State Journal, Pocatello, Idaho For decisions made by the Regional ACTION: Notice. Soda Springs District Ranger decisions: Forester affecting National Forests in Idaho State Journal, Pocatello, Idaho SUMMARY: This notice lists the Wyoming: Casper Star-Tribune, Montpelier District Ranger decisions: newspapers that will be used by all Casper, Wyoming Idaho State Journal, Pocatello, Idaho ranger districts, forests, and the For decisions made by the Regional Westside District Ranger decisions: Regional Office of the Intermountain Forester affecting National Forests in Idaho State Journal, Pocatello, Idaho Region to publish legal notice of all Utha: Salt Lake Tribune, Salt Lake Carbiou-Targhee Forest Supervisor decisions subject to appeal under 36 City, Utah decisions for the Targhee Portion: The CFR 215 and 36 CFR 217. The intended If the decision made by the Regional Post Register, Idaho Falls, Idaho effect of this action is to inform Forester affects all National Forests in Dubois District Ranger decisions: The interested members of the public which the Intermountain Region, it will Post Register, Idaho Falls, Idaho newspapers will be used to publish appear in: Salt Lake Tribune, Salt Island Park District Ranger decisions: legal notices of decisions, thereby Lake City, Utah The Post Register, Idaho Falls, Idaho Ashton District Ranger decisions: The allowing them to receive constructive Ashley National Forest notice of a decision, to provide clear Post Register, Idaho Falls, Idaho Ashley Forest Supervisors decisions: evidence of timely notice, and to Palisades District Ranger decisions: The Vernal Express, Vernal, Utah achieve consistency in administering Post Register, Idaho Falls, Idaho Vernal District Ranger decisions: Vernal Teton Basin District Ranger decisions: the appeals process. Express, Vernal, Utah The Post Register, Idaho Falls, Idaho DATES: Publication of legal notices in Flaming Gorge District Ranger for the listed newspapers will begin with decisions affecting Wyoming: Casper Dixie National Forest decisions subject to appeal that are Star Tribune, Casper, Wyoming Dixie Forest Supervisor decisions: The made on or after June 1, 2002. The list Flaming Gorge District Ranger for Daily Spectrum, St. George, Utah of newspapers will remain in effect decisions affecting Utah: Vernal Pine Valley District Ranger decisions: until December 1, 2002 when another Express, Vernal, Utah The Daily Spectrum, St. George, Utah notice will be published in the Federal Roosevelt and Duchesne District Ranger Cedar City District Ranger decisions: Register. decisions: Uintah Basin Standard, The Daily Spectrum, St. George, Utah FOR FURTHER INFORMATION CONTACT: Roosevelt, Utah Powell District Ranger decisions: The Daily Spectrum, St. George, Utah Barbara Schuster, Regional Appeals Boise National Forest Manager, Intermountain Region, 324 Escalante District Ranger decisions: The 25th Street, Ogden, UT 84401, and Boise Forest Supervisor decisions: The Daily Spectrum, St. George, Utah Phone (801) 625–5301. Idaho Statesman, Boise, Idaho Teasdale District Ranger decisions: The Mountain Home District Ranger Daily Spectrum, St. George, Utah SUPPLEMENTARY INFORMATION: The decisions: The Idaho Statesman, administrative appeal procedures 36 Boise, Idaho Fishlake National Forest CFR 215 and 36 CFR 217, of the Forest Idaho City District Ranger decisions: Fishlake Forest Supervisor decisions: Service require publication of legal The Idaho Statesman, Boise, Idaho Richfield Reaper, Richfield, UT notice in a newspaper of general Cascade District Ranger decisions: The Loa District Ranger decisions: Richfield circulation of all decisions subject to Long Valley Advocate, Cascade, Idaho Reaper, Richfield, UT appeal. This newspaper publication of Lowman District Ranger decisions: The Richfield District Ranger decisions: notices of decisions is in addition to Idaho World Garden Valley, Idaho Richfield Reaper, Richfield, UT direct notice to those who have Emmett District Ranger decisions: The Beaver District Ranger decisions: requested notice in writing and to those Messenger-Index, Emmett, Idaho Richfield Reaper, Richfield, UT

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Fillmore District Ranger decisions: Salmon-Challis National Forests Logan District Ranger decisions: Logan Richfield Reaper, Richfield, UT Salmon-Challis Forest Supervisor Herald Journal, Logan, Utah Humboldt-Toiyabe National Forests decisions for the Salmon portion: The Dated: May 17, 2002. Recorder-Herald, Salmon, Idaho Elizabeth G. Close, Humboldt-Toiyabe Forest Supervisor Salmon-Challis Forest Supervisor decisions for the Humboldt portion: Acting Deputy Regional Forester. decisions for the Challis portion: The [FR Doc. 02–13070 Filed 5–23–02; 8:45 am] Elko Daily Free Press, Elko, Nevada Challis Messenger, Challis, Idaho Humboldt-Toiyabe Forest Supervisor North Fork District Ranger decisions: BILLING CODE 3410–11–M decisions for the Toiyabe portion: The Recorder-Herald, Salmon, Idaho Reno Gazette-Journal, Reno, Nevada Leadore District Ranger decisions: The DEPARTMENT OF AGRICULTURE Sierra Ecosystem Coordination Center Recorder-Herald, Salmon, Idaho (SECO): Salmon/Cobalt District Ranger Forest Service Carson District Ranger decisions: decisions: The Recorder-Herald, Mammoth Times, Mammoth Lakes, Salmon, Idaho Forest Health and Restoration Project, California Middle Fork District Ranger decisions: National Forests in Alabama, Bridgeport District Ranger, decisions: The Challis Messenger, Challis, Idaho Bankhead National Forest, Winston, The Review-Herald, Mammoth Lakes, Challis District Ranger decisions: The Lawrence and Franklin Counties, California Challis Messenger, Challis, Idaho Alabama Spring Mountains National Recreation Yankee Fork District Ranger decisions: Area Ecosystem (SMNRAE): The Challis Messenger, Challis, Idaho AGENCY: Forest Service, USDA. Spring Mountains National Recreation Lost River District Ranger decisions: ACTION: Notice of intent to prepare an Area District Ranger decisions: Las The Challis Messenger, Challis, Idaho Environmental Impact Statement. Vegas Review Journal, Las Vegas, Sawtooth National Forest Nevada SUMMARY: Forest Service will prepare an Sawtooth Forest Supervisor decisions: Environmental Impact Statement on a Central Nevada Ecosystem (CNECO): The Times New, Twin Falls, Idaho Austin District Ranger decisions: Reno proposal to emphasize forest health Burley District Ranger decisions: Ogden initiatives across the Bankhead National Gazette-Journal, Reno, Nevada Standard Examiner. Ogden, Utah, for Tonopah District Ranger decisions: Forest in a systematic five-year program those decisions on the Burley District involving: Tonopah Times Bonanza-Goldfield involving the Raft River Unit. South 1. Intermediate thinning of News, Tonopah, Nevada Idaho Press, Burley, Idaho, for approximately 13,200 acres of loblolly Ely District Ranger decisions: Ely Daily decisions issued on the Idaho pine forest to favor conversion to native Times, Ely, Nevada portions of the Burley District Northeast Nevada Ecosystem (NNECO): Twin Falls District Ranger decisions: upland dry and very dry (xeric) oak Mountain City District Ranger decisions: The Times News, Twin Falls, Idaho forest and woodland communities, Elko Daily Free Press, Elko, Nevada Ketchum District Ranger decisions: reduce short-term risks to Southern Pine Ruby Mountains District Ranger Idaho Mountain Express, Ketchum, Beetle (SPB) infestations, and reduce decisions: Elko Daily Free Press, Elko, Idaho future forest fuel buildups. Nevada Sawtooth National Recreation Area: 2. Intermediate thinning of Jarbidge District Ranger decisions: Elko Challis Messenger, Challis, Idaho approximately 5,200 acres of loblolly Daily Free Press, Elko, Nevada Fairfield District Ranger decisions: The pine forest to favor conversation to Santa Rosa District Ranger decisions: Times News, Twin Falls, Idaho native shortleaf/bluestem woodland Humboldt Sun, Winnemucca, Nevada communities or very dry (xeric) pineoak Uinta National Forest forest and woodlands; reduce short-term Manti-LaSal National Forest Uinta Forest Supervisor decisions: The risks to SPB infestations; and reduce Manti-LaSal Forest Supervisor Daily Herald, Provo, Utah future forest fuel buildups. decisions: Sun Advocate, Price Utah Pleasant Grove District Ranger 3. Intermediated thinning of Sanpete District Ranger decisions: The decisions: The Daily Herald, Provo, approximately 3,200 acres of loblolly Pyramid, Mt. Pleasant, Utah Utah pine forest to favor conversion to native Ferron District Ranger decisions: Emery Heber District Ranger decisions: The longleaf/bluestem woodland County Progress, Castle Dale, Utah Daily Herald, Provo, Utah, and communities; reduce short-term risks to Spanish Fork District Ranger decisions: Price District Ranger decisions: Sun SPB infestations; and reduce future The Daily Herald, Provo, Utah Advocate, Price Utah forest fuel buildups. Moab District District Ranger decisions: Wasatch-Cache National Forest 4. Natural reforestation and associated site preparation on approximately 4,700 The Times Independent, Moab, Utah Wasatch-Cache Forest Supervisor acres of areas impacted by SPB to Monticello District Ranger decisions: decisions: Salt Lake Tribune, Salt restore these areas to native upland dry The San Juan Record, Monticello, Lake City, Utah Utah Salt Lake District Ranger decisions: Salt and very dry (xeric) oak forest and woodland communities. Payette National Forest Lake Tribune, Salt Lake City, Utah Kamas District Ranger decisions: Salt 5. Artificial reforestation and Payette Forest Supervisor decisions: Lake Tribune, Salt Lake City, Utah associated site preparation on Idaho Statesman, Boise, Idaho Evanston District Ranger decisions: approximately 2,200 acres of ares Weiser District Ranger decisions: Signal Uintah County Herald, Evanston, impacted by SPB to restore these areas American, Weiser, Idaho Wyoming to native shortleaf/bluestem woodland Council District Ranger decisions: Mountain View District Ranger communities. Council Record, Council, Idaho decisions: Uintah County Herald, 6. Artificial reforestation and New Meadows, McCall, and Krassel Evanston, Wyoming associated site preparation on District Ranger decisions: Star News, Ogden District Ranger decisions: Ogden approximately 800 acres of areas McCall, Idaho Standard Examiner, Ogden, Utah impacted by SPB to restore these areas

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to native longleaf/bluestem woodland communities. Prescribed firm may be humans actively used woodland fires on communities. used as a site preparation tool on some a regular basis for a variety of reasons DATES: Comments concerning this of these areas. Site specific information and the forests European settlers first analysis should be received in writing is available at the Bankhead Ranger encountered were a result of regular by July 6, 2002. District office in Double Springs, AL. occurrence of fire. This included both 5. Artificial reforestation and site upland hardwood forests/woodlands ADDRESSES: Send written comments to: preparation by roller drum chopping and pine woodlands. District Ranger, Bankhead NF, P.O. Box and prescribe fire on approximately Over the last 100–200 years, fire has 278, Double Springs, AL 35553. 2,000 acres of areas impacted by SPB to been effectively excluded from forests FOR FURTHER INFORMATION CONTACT: Glen restore theses areas to native shortleaf/ throughout the southern Cumberland Gaines, District Ranger, John Creed, EIS bluestem woodland communities. Site Plateau, including the area that is now Team Leader, Kathy Wallace, specific information is available at the the Bankhead National Forest. without Silviculturist, Tom Counts, Wildlife Bankhead Ranger District office in fire, the range of native, fire dependent Biologist, Telephone number: 205–489– Double Springs, AL. forest communities has not been 5111, FAX Number: 205–489–3427. 6. Artificial reforestation and site maintained and is now very uncommon SUPPLEMENTARY INFORMATION: preparation by roller drum chopping across the North Alabama landscape. A. The Proposal and prescribe fire on approximately 800 These communities include the acres of areas impacted by SPB to shortleaf/bluestem woodlands, very dry The Forest Service proposes to restore these areas to native longleaf/ (xeric) oak-pine woodlands, dry and implement a five-year schedule of work bluestem woodland communities. Site very dry (xeric) oak forest and to emphasize sustaining short- and long- specific information is available at the woodlands, and the northern extent of term forest health and the restoration of Bankhead Ranger District office in longleaf/bluestem woodlands. The six (6) native upland forest community Double Springs, AL. absence of fire, in combination with types, including all associated plant and major land use changes, has also wildlife species, on the Bankhead B. Needs for the Proposal resulted in a decline of native grassland National Forest located in Winston, 1. Begin the process of returning and shrub conditions that should be Lawrence, and Franklin Counties, loblolly pine plantations to longleaf/ common in some of the upland forests. Alabama. The proposed actions will bluestem, shortleaf/bluestem, or upland In turn, a decline in native plant and focus on (1) areas that are currently hardwood ecosystems by thinning. animal diversity across the region has occupied by loblolly pine forest that are 2. Thinning will reduce the risk of occurred. between the ages of 15 and 45 years old SPB attack (Final Environmental Impact The Alabama National Forest (now and (2) areas 10 acres and larger Statement For the Suppression of the the northern portion of the Bankhead impacted by recent SPB infestations. Southern Pine Beetle). National Forest) was established in 1914 The actions will include intermediate 3. Restore areas heavily impacted by as a result of the Weeks Act, for the thinning in loblolly pine forest, natural SPB to longleaf/bluestem, shortleaf/ primary purpose of helping to protect and artificial restoration to reforest SPB bluestem, or upland hardwood by site the nations watersheds and streams. impacted areas, and silvicultural site preparation and planting or by natural During the early years the emphasis of preparation of SPB impacted areas to regeneration with or without site the Forest Service was land acquisition better insure successful reforestation preparation. and custodial responsibilities. efforts. Actions proposed include: Beginning in the 1930s, the Civilian C. Nature and Scope of the Decision to 1. Intermediate thinning of Conservation Corp provided the labor be Made approximately 13,200 acres of loblolly needed to reestablish forests on pine forest to favor conversion to native The Bankhead National Forest is in a abandoned farmland and previously upland dry and very dry (xeric) oak unique position to implement natural cutover land, which was mostly in the forest and woodland communities, resource management actions aimed at uplands. The primary species used to reduce short-term risks to SPB sustaining a representation of nine (9) reestablish forest conditions was infestations, and reduce future forest forest community types that are native loblolly pine. Beginning in the 1960s, fuel buildups. to the Southern Cumberland Plateau the Forest Service initiated new efforts 2. Intermediate thinning of physiographic region. Emphasis will be to improve forest economic yields by approximately 5,200 acreas of loblolly placed on maintaining forest and plant replacing some upland hardwood pine forest to favor conversion to native community types not abundant on forests with faster growing loblolly pine. shortleaf/bluestem woodland private lands. These communities At the time, loblolly pine offered the communities or very dry (xeric) pine- include fire dependent upland pine/ best chance of high survival and success oak forest and woodlands, reduce short- bluestem and oak woodland ecosystems, in reforestation. These efforts, along term risks to SPB infestations, and mid-to late-successional deciduous with some natural establishment of reduce future forest fuel buildups. forests (including cove) hardwood/ loblolly pine, have resulted in 3. Intermediate thinning of eastern hemlock forests), old-growth approximately 68,000 acres typed as approximately 3,200 acres of loblolly representation of all nine (9) forest loblolly pine on the Bankhead. While pine forest to favor conversion to native community types, and eight (8) rare loblolly pine is a native tree species, the longleaf/bluestem woodland plant community types. dominance of pure stands of loblolly communities, reduce short-term risks to After the ice age receded pine is probably not typical of native, SPB infestations, and reduce future approximately 10,000 years ago, the fire dependent woodlands occurring in forest fuel buildups. composition of deciduous and pine the uplands. 4. Natural reforestation and site forests in eastern North America prior to Over the past decade, the Bankhead preparation with hand tools on European settlement was largely National Forest has been experiencing approximately 4,700 acres of areas influenced by climate, natural events Southern Pine Beetle infestations at impacted by SPB to restore these areas (both large-scale and small-scale) and epidemic levels, primarily in loblolly to native upland dry and very dry the use of fire by Native Americans. pine forests. The epidemic peaked in (xeric) oak forest and woodland There is increasing evidence that the summer of 2000 and continued at

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very high levels through 2001. An These forests will contribute a range Statement (EIS). Public meetings will be estimate 21,000 acres of pine forest have of habitat conditions that vary from held on June 27, and June 29,2002, from been killed by this epidemic. Most of suitable to optimal for those species of 9 a.m. to 1 p.m. to discuss the proposal the mortality occurred within the Sipsey plants and animals typically found in and visit some selected areas that may Wilderness, Proposed Thompson Creek association with forests of these be treated. Back Country Area, Kinlock Study Area, successional stages. Some The Bankhead National Forest is High Town Path Study Area, Indian representatives of the species typically seeking additional information, Tomb Hollow Study Area, and Proposed found within this range of habitat comments, and assistance from Federal, Flint Creek Botanical area where conditions in the mid to late State, and local agencies and other suppression efforts did not take place. successional stages of bottomland and individuals or organizations that may be The epidemic has resulted in large acres other deciduous forest include the interested in or affected by the proposed of standing dead trees that are a public hooded warbler, cerulean warbler, action. This input will be used in safety hazard along trails/roads and summer tanager, wood thrush, preparation of the Draft Environmental these areas have increased forest fuel Louisiana water thrush, Acadian Impact Statement (DEIS). The scoping loads that escalate the risk of flycatcher, white-tailed deer, eastern process includes: catastrophic wildfires in the future. wild turkey, Indiana bat and the eastern 1. Identifying potential issues. Approximately 47,000 acres typed as gray squirrel. 2. Identifying issues to be analyzed in loblolly pine remain on the Bankhead. 2. Additional pine community types depth. Of these acres, there are approximately currently exist on approximately 61,532 3. Eliminating insignificant issues or 22,100 acres of loblolly pine forest acres throughout the Bankhead National those, which have been covered by a between the age of 15 and 45 years old Forest and are not within the scope of relevant previous environmental with an immediate need for this decision. The conditions of these analysis. intermediate thinning to reduce the risk areas range from early successional (0– 4. Exploring additional alternatives. of SPB attack (Final Environmental 10 years of age) forests to mid- and late- 5. Identifying potential environmental Impact Statement for the Suppression of successional forests. The early effects of the proposed action and the Southern Pine Beetle). successional pine forests are in grass/ alternatives. This proposal will restore and sustain shrub to seedling/sapling conditions. E. Preliminary Issues Identified to Date six (6) upland forest and woodland Some of these grass/forb areas contain Include sparse over-story pine. The mid-late communities on approximately 29,100 1. Protection of soil and water acres currently types as loblolly pine. successional forest have continuous dominant canopy of medium to large- resources. The restoration will be initiated with 2. Impacts of the proposed treatments intermediate commercial thinning on sized trees of moderate tree density. The frequency of fire has not significantly on Federally listed species of plants and approximately 21,800 acres and wildlife, which are defined by the reforestation actions on approximately influenced the composition of these communities so most have a well- Endangered Species Act of 1973 as 7,500 acres included within the scope of amended, Forest Service Regional this decision. developed shrub and/or mid-story canopy. The communities and Forester’s Sensitive Species list, and Existing Forest Communities Not Within approximate acres include: upon locally rate species. the Scope of This Decision 3. Short and long term impacts on Estimated recreational experiences on the 1. Six (6) of the deciduous community Community type existing Bankhead National Forest. types currently exist on approximately acres 4. Protection of cultural resources. 85,295 acres throughout the Bankhead 5. Effects on management indicator Longleaf Pine and Longleaf- National Forest and are not within the species. scope of this decision. These areas will Hardwood ...... 1,549 Dry and very dry (xeric) Pine be characterized as mid- to late- F. Possible Alternatives Identified to and Pine-Oak Forest ...... 8,777 Date Include successional deciduous forests. These Loblolly Pine, Mixed Pine, and forests will have a continuous dominant Loblolly-Hardwood ...... 51,206 1. No Action: This alternative will canopy of large trees, with occasional serve as a baseline for comparison of small gaps up to 1⁄2 acre in size. Fire has These forests will contribute suitable alternatives. Present management not significantly influenced the and optimal habitat for southern pine activities will continue but the proposed composition of these communities, so plant and animal associates, mixed very project will not be done. This most have a well-developed shrub and dry (xeric) forest associates, early alternative will be fully developed and mid-story canopy. The communities and successional plant and animal analyzed. approximate acres include: associates, game species, and cave 2. Proposed Action: species (those requiring forest Restoration Activities for Native Upland Estimated conditions for summer maternity/ Community type existing Deciduous Forests and Woodlands acres roosting). There will be intermediate thinning of D. Proposed Scoping Process Northern Hardwood Forest ...... 1,455 approximately 13,200 acres of loblolly Mixed Mesophytic (Cove-Hem- The scoping period associated with pine forest to favor conversion to dry lock) Forest ...... 14,365 this Notice of Intent (NOI) will be thirty and very dry (xeric) oak forest and Eastern Riverfornt Forest ...... 4,381 (30) days in length, beginning the day woodlands, moderately moist (mesic) Moderately moist (mesic) Oak after publication of this notice. oak forests, and dry and moderately Forest ...... 46,131 Preliminary scoping for this proposal moist (mesic) oak-pine forests, reduce Dry and Moderately moist began in November 2001 when short-term risks to SPB infestations, and (mesic) Oak-Pine Forest ...... 15,041 information was shared with the public reduce forest fuel buildups. Dry and Very dry (xeric) Oak Forest ...... 3,922 on the proposal and plans to document The loblolly pine thinning program the analysis in an Environmental Impact will reduce basal area to between 50 to

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70 square feet per acre. Trees favored for These forests will contribute a range infestations and reduce forest fuel retention in order of priority in these of habitat conditions that vary from buildups. areas will include (1) dominant suitable to optimal for those species of The loblolly pine thinning program hardwood trees, (2) co-dominant plants and animals typically found in will reduce basal area to between 60 to hardwood trees, and (3) dominant/co- association with forests of these 70 square feet per acre. Trees favored for dominant pine. The favored hardwood successional stages. Some retention in order of priority in these species will include a variety of oak and representatives of the species typically areas will include (1) shortleaf pine, (2) hickory species. Consultation will be found within this range of habitat longleaf pine, (3) loblolly pine, and (4) conducted with the U.S. Fish and conditions in the mid to late dominant/codominant oaks/hickory. Wildlife Service regarding coordination successional stages of deciduous forest The favored hardwood species will of restoration activities with Recovery include the hooded warbler, pileated include a variety of oak and hickory Plans for Federally listed species. The woodpecker, cerulean warbler, white- species. Consultation will be conducted top priority stands for thinning will be tailed deer, eastern wild turkey and the with the U.S. Fish and Wildlife Service those between 15–45 years old, with eastern gray squirrel. regarding coordination of restoration high tree densities. It is proposed that 2. Moderately Moist (Mesic) Oak Forest activities with Recovery Plans for all timber sale harvest options be and Dry and Moderately Moist (Mesic) Federally listed species. The top priority available for this program. Oak-Pine Forest Community stands for thinning will be those The thinning will allow the between 15–45 years old, with high tree development of young oak, hickory, and The moderately moist (mesic) oak densities. It is proposed that all timber other associated hardwood species in forest and dry and moderately moist sale harvest options be available for this the understory that are intolerant of (mesic) oak-pint forest community types program. shade. In some cases, the thinning will will be restored on the northern portion The thinning will lower tree densities actually shift the forest condition from of the Bankhead National Forest. These that will allow the development of predominantly pine forest to a areas will be characterized as mid- to understory, fire-dependent grasses and predominatly deciduous forest late-successional forests. shrubs that are intolerant of shade. This condition. These forests will have a continuous thinning will precede future restoration Natural reforestation, with or without dominant canopy of medium-sized activities that will gradually replace the trees, with occasional small gaps up to existing loblolly pine with shortleaf site preparation, as well as the 1 possibility of artificial reforestation, will ⁄2 acre in size. Dominant over story pine as predominant species. be conducted on approximately 4,700 trees will include northern hardwood, Artificial reforestation and site acres of former loblolly pine forest chestnut oak, black oak, scarlet oak, preparation will be conducted on impacted by SPB infestations. Site pignut hickory, mockernut hickory, approximately 2,000 acres of former preparation may include mechanical shagbark hickory, loblolly pine, and loblolly pine forest impacted by SPB treatment, prescribed burning or a shortleaf pine. American chestnut infestations. Site preparation may combination of both. Some areas may be historically was a major species in this include mechanical treatment, left to regenerate naturally without site forest community. On dry sites, the prescribed burning or a combination of preparation. These activities will restore occurrence of low intensity fire in these both. Shortleaf seedlings will be planted these sites to dry and very dry (xeric) areas, 1 or 2 times per decade, will help artificially to assure adequate stocking. oak forest and woodlands, moderately maintain the oak component by In addition, prescribed burning will be moist (mesic) oak forests, and dry and eliminating fire-sensitive competitors utilized as an intermediate to help moderately moist (mesic) oak-pine and stimulate oak regeneration. On achieve the desired restoration. These forests. moderately moist (mesic) sites these activities will restore these sites to very forests will have a well-developed shrub dry (xeric) shortleaf/bluestem Desired Outcome for Upland Deciduous and mid-story canopy. woodlands. forest Restoration Effort These forests will contribute a range Desired Outcome of Shortleaf/Bluestem of habitat conditions that vary from 1. Dry and Very dry (xeric) Oak Forest Woodland Community Restoration suitable to optimal for those species of and Woodland Community Effort plants and animals typically found in The dry and very dry (xeric) oak forest association with forests of these The very dry (xeric) shortleaf/ and woodland community type will be successional stages. Some bluestem woodland and very dry (xeric) restored on the northern portion of the representatives of the species typically pine-oak forest and woodland Bankhead National Forest. These areas found within this range of habitat community types will be restored on the will be characterized as mid- to late- conditions in the mid to late central portion of the Bankhead successional forests. These forests are successional stages of deciduous forest National Forest. These areas will be characterized as having canopies include the hooded warbler, pileated characterized as mid- to late- ranging from closed forest conditions to woodpecker, cerulean warbler, white- successional forests. These forests are open woodland conditions, with tailed deer, eastern wild turkey and the characterized as having open woodland occasional small gaps up to 1⁄2 acre in eastern gray squirrel. conditions, with occasional small gaps size. Dominant over story trees will up to 1⁄2 acre in size. The dominant over Restoration Activities for Native include white oak, black oak, chestnut story tree will be shortleaf pine. Other Shortleaf/Bluestem Woodlands oak, scarlet oak, and post oak. The trees species that will be found at lower occurrence of dormant season fire in There will be intermediate thinning of densities are: Virginia pine, loblolly these areas, 1 or 2 times per decade, will approximately 5,200 acres of loblolly pine, scarlet oak, chestnut oak, southern restrict tree density and promote the pine forest to favor conversion to very red oak, white oak, blackjack oak, and growth of shade intolerant grasses, dry (xeric) shortleaf/bluestem pignut hickory. The occurrence of forbs, and shrubs in some areas and in woodlands and very dry (xeric) pine-oak dormant and growing season fire in other areas these forests will have a well forest and woodlands. This action will these areas, 2 or 3 times per decade, will developed shrub and mid-story canopy. also reduce short-term risks to SPB restrict tree density and promote the

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growth of shade intolerant native Desired Outcome of Longleaf/Bluestem of the alternatives discussed (see the grasses, forbs, and shrubs. Woodland Community Restoration Council on Environmental quality If maintained by fire, this portion of Effort Regulations for implementing the the forest will contribute a range of The longleaf/bluestem woodland procedural provisions of the National habitat conditions that vary from community types will be restored on the Environmental Policy Act at 40 CFR suitable to optimal for those species of southern portion of the Bankhead 1503.3) In addition, Federal court decisions plants and animals typically found in National Forest. These areas will be have established that reviewers of association with forests of these open characterized as mid- to late- DEIS’s must structure their participation conditions. Some representatives of the successional forests. These forests are in the environmental review of the species typically within this range of characterized as having open woodland proposal so that it is meaningful and habitat conditions in the native shortleaf conditions, with occasional small gaps alerts the agency to the reviewers’ and bluestem woodland include the up to 1⁄2 acre in size. The dominant over position and contentions: Vermont prairie warbler, orchard oriole, northern story tree will be longleaf pine. Other Yankee Nuclear Power Corp. v. NRDC, bobwhite quail, white-tailed deer, and trees species that will be found at lower 435 U.S. 519, 553 (1978). Environmental eastern wild turkey. densities are: Virginia pine, loblolly pine, scarlet oak, chestnut oak, southern objections that could have been raised at Restoration Activities for Native red oak, white oak, blackjack oak, and the draft stage may be waived if not Longleaf/Bluestem Woodlands pignut hickory. The occurrence of raised until after completion of the final dormant and growing season fire in environmental impact statement (FEIS). There will be intermediate thinning of City of Angoon v. Hodel, 803 F.2d 1016, approximately 3,200 acres of loblolly these areas, 2 or 3 times per decade, will restrict tree density and promote the 1022 (9th Cir. 1986) and Wisconsin pine forest to favor conversion to Heritages, Inc. v. Harris, 490 F.Supp. longleaf/bluestem woodlands, to reduce growth of shade intolerant native grasses, forbs, and shrubs. 1334, 1338 (E.D. Wis. 1980). The reason short-terms risks to SPB infestations, for this is to ensure that substantive and to reduce forest fuel buildups. These areas of the forest will contribute a range of habitat conditions comments and objections are made The loblolly pine thinning program for native species of plants and wildlife. available to the Forest Service at a time will reduce basal area to between 60 to This range of conditions will vary from when it can meaningful consider them 70 square feet per acre. These favored suitable to optimal for those species of and respond to them in the FEIS. for retention in order of priority in these plants and animals typically found in I. Estimated date for FEIS areas will include (1) longleaf pine, (2) association with forests of these open shortleaf or loblolly pine, and (3) After the comment period ends on the conditions. Maintenance by prescribed DEIS, the comments will be analyzed, dominant/codominant oaks/hickory. fire is necessary to have the optimal The favored hardwood species will considered, and responded to by the conditions. Some representatives of the Forest Service in preparing the Final include a variety of oak and hickory wildlife species typically found within species. Consultation will be conducted Environmental Impact Statement (FEIS). this range of habitat conditions in the The FEIS is scheduled to be completed with the U.S. Fish and Wildlife Service native longleaf pine and bluestem by November 17, 2003. The responsible regarding coordination of restoration woodlands include the prairie warbler, official will consider the comments, activities with Recovery Plans for brown-headed nuthatch, red-cockaded responses, environmental consequences Federally listed species. The top priority woodpecker, northern bobwhite quail, discussed in the final supplement, stands for thinning will be those white-tailed deer and eastern wild applicable laws, regulations, and between 15–45 years old, with high tree turkey. policies in making a decision regarding densities. It is proposed that all timber this proposal. The responsible official sale harvest options be available for this G. Special Permit Needs will document the decision and reasons program. There are no special permits required for the decision in the Record of from any State or Federal agencies in The thinning will lower tree densities Decision. That decision will be subject order to implement this project. that will allow the development of to appeal under 36 CFR 215. The Consultation with U.S. Fish and understory, fire-dependent grasses and responsible official for this project will Wildlife Service as required by section shrubs that are intolerant of shade. This be Glen Gaines, District Ranger for the 7 of the Endangered Species Act of thinning will precede future restoration Bankhead Ranger District, National 1973, as amended, will be conducted for activities that will gradually replace the Forests in Alabama at: P.O. Box 278, all needed activities. existing loblolly pine with longleaf pine Double Springs, AL 35553. as predominant species. H. Lead Agency Dated: May 17, 2002. Artificial reforestation and site The USDA Forest Service is the lead Glen D. Gaines, preparation will be conducted on agency for this project. The Bankhead District Ranger. approximately 800 acres of former Ranger District requests that comments [FR Doc. 02–13069 Filed 5–23–02; 8:45 am] loblolly pine forest impacted by SPB be as specific as possible for this BILLING CODE 3410–11–M infestations. Site preparation may proposal, and be sent to: District Ranger include mechanical treatment, Glen Gaines, USDA, Forest Service, P.O. prescribed burning or a combination of Box 278, Double Springs, AL 35553. DEPARTMENT OF AGRICULTURE both. Longleaf seedlings will be planted It is estimated that the draft EIS will artificially to assure adequate stocking. be available for public comment by July Forest Service In addition, prescribed burning will be 31, 2003. It is very important that those utilized as an intermediate treatment to interested in this proposed action Hood/Willamette Resource Advisory help achieve the desired future participate at this time. To be helpful, Committee (RAC) Meeting conditions. These activities will restore comments on the DEIS should be as AGENCY: Forest Service, USDA. these sites to very dry (xeric) longleaf/ specific as possible and may address the ACTION: Meeting. bluestem woodlands. adequacy of the statement or the merits

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SUMMARY: The Hood/Willamette SUPPLEMENTARY INFORMATION: This NPA: Brevard Achievement Center, Inc., Resource Advisory Committee (RAC) notice is published pursuant to 41 U.S.C Rockledge, FL. will meet on Friday, June 21, 2002. The 47(a)(2) and 41 CFR 51–2.3. Its purpose Contract Activity: Department of the Air meeting is scheduled to begin at 9 a.m. is to provide interested persons an Force, Eglin Air Force Base, FL. and will conclude at approximately 4 opportunity to submit comments on the Service Type/Location: Janitorial/ p.m. The meeting will be held at the possible impact of the proposed actions. Custodial, The Dalles Dam, The Salem Office of the Bureau of Land If the Committee approves the Dalles, OR. Management Office; 1717 Fabry Road proposed additions, the entities of the NPA: Hood River Sheltered Workshop, SE; Salem, Oregon; (503) 375–5646. The Federal Government identified in the Inc., Hood River, OR. tentative agenda includes: (1) Report on notice for each product or service will Contract Activity: Army Corps of status of 2002 projects; (2) decision on be required to procure the product and Engineers, Portland, OR. overhead rate for 2003 projects; (3) services listed below from nonprofit Service Type/Location: Packaging presentation of 2003 Projects; and (4) agencies employing persons who are Service, Crane Division, Naval public forum. blind or have other severe disabilities. Surface Warfare Center, Crane, IN. The Public Forum is tentatively I certify that the following action will NPA: Knox County Association for scheduled to begin at 11 p.m. Time not have a significant impact on a Retarded Citizens, Inc., Vincennes, allowed for individual presentations substantial number of small entities. IN. will be limited to 3–4 minutes. Written The major factors considered for this Contract Activity: Naval Surface Warfare comments are encouraged, particularly certification were: Center, Crane, IN. 1. If approved, the action will not if the material cannot be presented Sheryl D. Kennerly, within the time limits for the Public result in any additional reporting, recordkeeping or other compliance Director, Information Management. Forum. Written comments may be [FR Doc. 02–13125 Filed 5–23–02; 8:45 am] submitted prior to the June 21st meeting requirements for small entities other by sending them to Designated Federal than the small organizations that will BILLING CODE 6353–01–P Official Donna Short at the address furnish the product and services to the Government. given below. 2. If approved, the action will result COMMITTEE FOR PURCHASE FROM FOR FURTHER INFORMATION CONTACT: For in authorizing small entities to furnish PEOPLE WHO ARE BLIND OR more information regarding this the product and services to the SEVERELY DISABLED meeting, contact Designated Federal Government. Official Donna Short; Sweet Home 3. There are no known regulatory Procurement List; Additions Ranger District; 3225 Highway 20; alternatives which would accomplish AGENCY: Committee for Purchase from Sweet Home, Oregon 97386; (541) 367– the objectives of the Javits-Wagner- People Who Are Blind or Severely 9220. O’Day Act (41 U.S.C. 46–48c) in Disabled. connection with the product and Dated: May 15, 2002. ACTION: Additions to Procurement List. Y. Robert Iwamoto, services proposed for addition to the Acting Forest Supervisor. Procurement List. Comments on this SUMMARY: This action adds to the certification are invited. Commenters Procurement List services to be [FR Doc. 02–13039 Filed 5–23–02; 8:45 am] should identify the statement(s) BILLING CODE 3410–11–M furnished by nonprofit agencies underlying the certification on which employing persons who are blind or they are providing additional have other severe disabilities. information. EFFECTIVE DATE: June 23, 2002. COMMITTEE FOR PURCHASE FROM The following product and services ADDRESSES: Committee for Purchase PEOPLE WHO ARE BLIND OR are proposed for addition to From People Who Are Blind or Severely SEVERELY DISABLED Procurement List for production by the nonprofit agencies listed: Disabled, Jefferson Plaza 2, Suite 10800, Procurement List; Proposed Additions 1421 Jefferson Davis Highway, Product Arlington, Virginia 22202–3259. AGENCY: Committee for Purchase from Product/NSN: Pad, Scouring; 7920– FOR FURTHER INFORMATION CONTACT: People Who Are Blind or Severely 00–171–1534. Sheryl D. Kennerly, (703) 603–7740. NPA: Beacon Lighthouse, Inc., Disabled. SUPPLEMENTARY INFORMATION: On ACTION: Proposed Additions to Wichita Falls, TX. February 15, and March 29, 2002, the Contract Activity: General Services Procurement List. Committee for Purchase From People Administration. Who Are Blind or Severely Disabled SUMMARY: The Committee is proposing Services published notice (67 F.R. 7130, and to add to the Procurement List a product 15175) of proposed additions to the and services to be furnished by Service Type/Location: CD-ROM Procurement List. nonprofit agencies employing persons Replication—Program A890–M, Government Printing Office, After consideration of the material who are blind or have other severe presented to it concerning capability of disabilities. Washington, DC. NPA: Association for the Blind qualified nonprofit agencies to provide Comments Must Be Received on or the services and impact of the additions Before: June 23, 2002. &Visually Impaired & Goodwill Industries of Greater on the current or most recent ADDRESS: Committee for Purchase From Rochester,Rochester, NY. contractors, the Committee has People Who Are Blind or Severely Contract Activity: Government Printing determined that the services listed Disabled, Jefferson Plaza 2, Suite 10800, Office, Washington, DC. below are suitable for procurement by 1421 Jefferson Davis Highway, Service Type/Location: Commissary the Federal Government under 41 U.S.C. Arlington, Virginia 22202–3259. Shelf Stocking, Custodial & 46–48c and 41 CFR 51–2.4. FOR FURTHER INFORMATION CONTACT: Warehousing, Eglin Air Force Base, I certify that the following action will Sheryl D. Kennerly, (703) 603–7740. FL. not have a significant impact on a

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substantial number of small entities. OMB. Because OMB is still experiencing chemical transformation of materials, The major factors considered for this delays in receiving regular mail substances, or components into new certification were: (including first class and express mail) products. The assembling of component 1. The action will not result in any due to the events of last fall, comments parts of manufactured products is additional reporting, recordkeeping or on this proposed information collection considered manufacturing, except in other compliance requirements for small request should be faxed to Susan cases where the activity is appropriately entities other than the small Schechter, OMB desk officer, at (202) classified in Sector 23, Construction. organizations that will furnish the 395–7245. The due date for these The economic census will produce basic services to the Government. comments to be faxed to OMB has been statistics by industry for number of 2. The action will result in extended to June 7, 2002. establishments, payroll, employment, authorizing small entities to furnish the OMB Desk Officer: Susan Schechter, value of shipments, value added, capital services. (202) 395–5103. expenditures, depreciation, materials 3. There are no known regulatory Copies of the above information consumed, selected purchased services, alternatives which would accomplish collection proposal can be obtained by electric energy used and inventories the objectives of the Javits-Wagner- calling or writing Madeleine Clayton, held. O’Day Act (41 U.S.C. 46–48c) in Departmental Paperwork Clearance The economic census is the primary connection with the services proposed Officer, (202)482–3129, Department of source of facts about the structure and for addition to the Procurement List. Commerce, room 6608, 14th and functioning of the Nation’s economy Accordingly, the following services Constitution Avenue, NW, Washington, and features unique industry and are added to the Procurement List: DC 20230 (or via the Internet at geographic detail. Economic census statistics serve as part of the framework Services [email protected]). Written comments and for the national accounts and provide Service Type/Location: Grounds recommendations for the proposed essential information for government, Maintenance, Naval Undersea Warfare business, and the general public. The Center Division, Keyport, WA. information collection should be sent NPA: Skookum Educational Programs, Port via fax by June 7, 2002 to Susan Federal Government (i.e., Bureau of Townsend, WA. Schechter, OMB Desk Officer, (202) Economic Analysis, Bureau of Labor Contract Activity: Naval Undersea Warfare 395–7245. Statistics) uses information from the economic census as an important part of Center Division, Keyport, WA. Dated: May 20, 2002. the framework for the national income Service Type/Location: Switchboard Madeleine Clayton, Operation, Veterans Affairs Medical and product accounts, input-output Center, Iowa City, IA. Departmental Paperwork Clearance Officer, tables, economic indexes, and other NPA: Goodwill Industries of Southeast Iowa, Office of the Chief Information Officer. composite measures that serve as the Iowa City, IA. [FR Doc. 02–13083 Filed 5–23–02; 8:45 am] factual basis for economic Contract Activity: Veterans Affairs Medical BILLING CODE 3510–07–P policymaking, planning, and program Center, Iowa City, IA. administration. Further, the census This action does not affect current provides sampling frames and contracts awarded prior to the effective date DEPARTMENT OF COMMERCE benchmarks for current surveys which of this addition or options that may be exercised under those contracts. Submission for OMB Review; track short-term economic trends, serve Comment Request as economic indicators, and contribute Sheryl D. Kennerly, critical source data for current estimates Director, Information Management. DOC has submitted to the Office of of the gross domestic product. State and [FR Doc. 02–13126 Filed 5–23–02; 8:45 am] Management and Budget (OMB) for local governments rely on the economic BILLING CODE 6353–01–P clearance the following proposal for census as a unique source of collection of information under the comprehensive economic statistics for provisions of the Paperwork Reduction small geographic areas for use in DEPARTMENT OF COMMERCE Act (44 U.S.C. chapter 35). policymaking, planning, and program Agency: U.S. Census Bureau. administration. Finally, industry, Submission for OMB Review; Title: 2002 Economic Census Covering business, academia, and the general Comment Request—Special Notice the Manufacturing Sector. public use information from the Form Number(s): MA–10000, MC– economic census for evaluating markets, DOC has submitted to the Office of 31000 thru MC–33000. preparing business plans, making Management and Budget (OMB) for Agency Approval Number: None. business decisions, developing clearance the following proposal for Type of Request: New collection. economic models and forecasts, collection of information under the Burden: 940,200 hours in FY 2003. conducting economic research, and provisions of the Paperwork Reduction Number of Respondents: 260,000. establishing benchmarks for their own Act (44 U.S.C. chapter 35). Avg Hours Per Response: 3 hours and sample surveys. Agency: U.S. Census Bureau, 37 minutes. Affected Public: Businesses or other Commerce. Needs and Uses: The 2002 Economic for-profit. Title: American Community Survey. Census Covering the Manufacturing Frequency: One time. Information: On May 1, 2002, the Sector will use a mail canvass, Respondent’s Obligation: Mandatory. Census Bureau published a notice in the supplemented by data from Federal Legal Authority: Title 13 U.S.C., Federal Register notifying the public of administrative records, to measure the Sections 131 and 224. its plans to conduct the American economic activity of approximately OMB Desk Officer: Susan Schechter, Community Survey starting in 400,000 establishments in this sector of (202) 395–5103. November 2002. In that notice, written the economy classified in the North Copies of the above information comments and recommendations for the American Industry Classification collection proposal can be obtained by proposed information collection were to System (NAICS). The manufacturing calling or writing Madeleine Clayton, be sent within 30 days of publication to sector comprises establishments Departmental Paperwork Clearance the desk officer’s regular mail address at engaged in the mechanical, physical, or Officer, (202) 482–3129, Department of

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Commerce, room 6608, 14th and expenses to complement data on sales Form Number: Not available. Some of Constitution Avenue, NW., Washington, and inventories compiled in current the forms to be used to collect DC 20230 (or via the Internet at surveys. Together, these data are information for the 2002 Business [email protected]). benchmarked to the economic census Expenses Survey will be associated with Written comments and and are used to compile measures of concurrent business annual surveys of recommendations for the proposed value produced for selected industries. wholesale, retail, and selected service information collection should be sent The collection of business expenses data businesses. For industries not covered within 30 days of publication of this is required for reliable measurement of in the annual surveys, such as selected notice to Susan Schechter, OMB Desk the United States economy. As such, the finance, insurance, real estate, Officer, room 10201, New Executive Bureau of Economic Analysis (BEA), transportation, and education services, Office Building, Washington, DC 20503. producer of gross domestic product unique forms will be used. Requests for Dated: May 20, 2002. estimates, is the primary user of these information on the proposed content of data. The BEA uses the expenses data Madeleine Clayton, the forms should be directed to Sheldon for developing the national income and G. Ziman, U. S. Census Bureau, Room Departmental Paperwork Clearance Officer, product accounts, input-output tables, Office of the Chief Information Officer. 1183, Building 3, Washington DC and economic indexes, and to fill 20233–6400 (301–457–3315) or via the [FR Doc. 02–13084 Filed 5–23–02; 8:45 am] previously identified critical gaps in Internet at [email protected]. BILLING CODE 3510–07–P underlying data in these accounts. Type of Review: Regular review. Industrial sectors covered by the Affected Public: Incorporated and survey include wholesale trade, retail DEPARTMENT OF COMMERCE non-incorporated businesses, and for trade, and most of the transportation profit and not for profit institutions or Census Bureau and service sectors, as based on the organizations 1997 North American Industry Estimated Number of Respondents: 2002 Business Expenses Survey Classification System (NAICS). The information collected will 90,000 employer reporting units. Estimated Time Per Response: The ACTION: Proposed collection; comment produce statistics by kind of business on request. operating expenses such as labor costs, average for multi-location firms is 2.2 depreciation, rent, materials and hours and the average for single-location SUMMARY: The Department of supplies, utilities, and purchased firms is 1.2 hours. Commerce, as part of its continuing services such as advertising, repairs, Estimated Total Annual Burden effort to reduce paperwork and legal, accounting, and computer Hours: 160,000 hours. respondent burden, invites the general services. The primary strategy for Estimated Total Annual Cost to public and other Federal agencies to minimizing burden in this survey is the Respondents: $3.1 million. take this opportunity to comment on use of sampling and sub-sampling, and Respondent’s Obligation: Mandatory. proposed and/or continuing information where possible, supplementing the Legal Authority: Title 13, United collections, as required by the Census Bureau’s business annual States Code, Sections 131, 193, 195, and Paperwork Reduction Act of 1995, surveys as the data collection vehicle. 224. Public Law 104–13 (44 U.S.C. 3506(c)(2)(A)). II. Method of Collection IV. Request for Comments DATES: Written comments must be The 2002 Business Expenses Survey Comments are invited on: (a) Whether submitted on or before July 23, 2002. will be conducted using mailout/ the proposed collection of information mailback procedures, where possible ADDRESSES: Direct all written comments is necessary for the proper performance supplementing the Census Bureau’s to Madeleine Clayton, Departmental of the functions of the agency, including business annual surveys. The sample to Paperwork Clearance Officer, whether the information shall have be used was previously created for the Department of Commerce, Room 6608, practical utility; (b) the accuracy of the business current surveys, covering 14th and Constitution Avenue, NW, agency’s estimate of the burden wholesale trade, retail trade, and most Washington, DC 20230 (or via the (including hours and cost) of the of the transportation and service Internet at [email protected]). proposed collection of information; (c) industrial sectors. Most multi-location ways to enhance the quality, utility, and FOR FURTHER INFORMATION CONTACT: companies included in the sample will clarity of the information to be Requests for additional information or receive a separate form to consolidate collected; and (d) ways to minimize the copies of the information collection their data for each unique kind of burden of the collection of information instrument(s) and instructions should business operated. Only employer on respondents, including through the be directed to Sheldon G. Ziman, U. S. businesses will be mailed. Data for non- use of automated collection techniques Census Bureau, Room 1183, Building 3, employers for selected industries will be or other forms of information Washington DC 20233–6400 (301–457– estimated based on administrative technology. 3315), or via the Internet at records. The questionnaires will be [email protected]. Comments submitted in response to mailed from the Census Bureau’s this notice will be summarized and/or SUPPLEMENTARY INFORMATION: National Processing Center in included in the request for OMB Jeffersonville, Indiana. Three periodic I. Abstract approval of this information collection; mail follow-ups and a telephone follow- they also will become a matter of public The business expenses survey is up will be conducted to minimize record. conducted as part of the economic statistical error due to nonresponse. Dated: May 20, 2002. census, which is required by law to be Upon closeout of data collection, the taken every five years under Title 13 of response data will be edited and Madeleine Clayton, the United States Code. The 2002 reviewed. Departmental Paperwork Clearance Officer, Business Expenses Survey will be Office of the Chief Information Officer. conducted on a sample basis for the III. Data [FR Doc. 02–13085 Filed 5–23–02; 8:45 am] collection of data on business operating OMB Number: Not available. BILLING CODE 3510–07–P

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DEPARTMENT OF COMMERCE The Applicable Statute and Regulations Steel Pipe From the People’s Republic of Unless otherwise indicated, all China, 67 FR 2189 (January 16, 2002). International Trade Administration citations to the statute are references to The Department verified the responses the provisions effective January 1, 1995, to the antidumping questionnaire of [A–351–832] the effective date of the amendments Baosteel and one of its suppliers from January 16–19, 2002; WeiFang from made to the Tariff Act of 1930 (‘‘the Notice of Preliminary Determination of February 3–5, 2002; and Shuang Jie Act’’) by the Uruguay Round Sales at Less Than Fair Value and from February 7–9, 2002. After releasing Agreements Act. In addition, unless Postponement of Final Determination: verification reports, we invited parties otherwise indicated, all citations to the Carbon and Certain Alloy Steel Wire to comment on these reports and our Department of Commerce Rod from Brazil; Correction Preliminary Determination. We received (‘‘Department’’) regulations are to the comments from petitioners and all three regulations at 19 C.F.R. Part 351 (2001). AGENCY: Import Administration, mandatory respondents on March 20, International Trade Administration, Final Determination 2002 and rebuttal briefs from the same Department of Commerce. We determine that certain circular parties on March 25, 2002. At the EFFECTIVE DATE requests of Shuang Jie and petitioners, : May 24, 2002. welded carbon-quality steel pipe a hearing was held on April 15, 2002. SUMMARY: The notice appearing in 67 FR (‘‘pipe’’) from the People’s Republic of 18586, on Tuesday, April 16, 2002, Based on our analysis of verification China (‘‘PRC’’) is being, or is likely to findings and the comments received, we should be disregarded because it be, sold in the United States at less than duplicates the notice appearing in 67 FR have made changes in the margin fair value (‘‘LTFV’’), as provided in calculation. Therefore, the final 18165, on Monday, April 15, 2002. section 735 of the Act. The estimated Therefore, the effective date of the determination differs from the margins of sales at LTFV are shown in Preliminary Determination. preliminary determination is April 15, the ‘‘Continuation of Suspension of 2002. Liquidation’’ section of this notice. Period of Investigation FOR FURTHER INFORMATION CONTACT: Case History The period of investigation (‘‘POI’’) is Vicki Schepker or Christopher Smith, at October 1, 2000 through March 31, (202) 482–1756 or (202) 482–1442, The preliminary determination in this 2001. This period corresponds to the respectively; AD/CVD Enforcement investigation was published on two most recent fiscal quarters prior to Group II Office 5, Import December 31, 2001. See Notice of the month of the filing of the petition Administration, Room 1870, Preliminary Determination of Sales at (i.e. May 24, 2001). See 19 C.F.R. International Trade Administration, Less Than Fair Value: Certain Circular 351.204(b)(1). U.S. Department of Commerce, 14th Welded Carbon-Quality Steel Pipe From Scope of Investigation Street and Constitution Avenue, NW, the People’s Republic of China, 66 FR Washington, DC 20230. 67500 (‘‘Preliminary Determination’’). The products covered by this This investigation covers three investigation are certain welded carbon- Dated: May 20, 2002 mandatory respondents, WeiFang East quality steel pipes and tubes, of circular Bernard T. Carreau, Steel Pipe Co., Ltd. (‘‘WeiFang’’); cross-section, with an outside diameter Deputy Assistant Secretary for Group II, Tianjin Shuang Jie Steel Pipe Co., Ltd. of 0.372 inches (9.45 mm) or more, but Import Administration. (‘‘Shuang Jie’’); and Baosteel Group not more than 16 inches (406.4 mm), [FR Doc. 02–13150 Filed 5–23–02; 8:45 am] International Trade Corporation regardless of wall thickness, surface BILLING CODE 3510–DS–S (‘‘Baosteel’’). In addition, there are five finish (black, galvanized, or painted), voluntary respondents, Tai Feng Qiao end finish (plain end, beveled end, Metal Products Co. (‘‘Tai Feng Qiao’’); grooved, threaded, or threaded and DEPARTMENT OF COMMERCE Pangang Group International Economic coupled), or industry specification International Trade Administration and Trade Corporation (‘‘Pangang (ASTM, proprietary, or other), generally International’’); ZheJiang JingZhou known as standard pipe and structural HuaLong Petroleum Corrosion-Resistant pipe. [A–570–870] Steel Pipe Co., Ltd. (Jinzhou’’); Walsall Standard pipes and tubes are Steel Pipe Industrial Co., Ltd. intended for the low-pressure Notice of Final Determination of Sales (‘‘Walsall’’); China MinMetals ZhuHai conveyance of water, steam, natural gas, at Less Than Fair Value: Certain Co., Ltd. (‘‘ZhuHai’’). Petitioners in this air, and other liquids and gases in Circular Welded Carbon-Quality Steel investigation are Allied Tube & Conduit plumbing and heating systems, air Pipe from the People’s Republic of Corporation, Century Tube Corporation, conditioning units, automatic sprinkler China IPSCO Tubulars, Inc., Laclede Steel, systems, and other related uses. AGENCY: Import Administration, LTV Copperweld, Maverick Tube Standard pipe may carry liquids at International Trade Administration, Corporation, Northwest Pipe Company, elevated temperatures but may not be Department of Commerce. Sharon Tube Company, Western Tube & subject to the application of external Conduit Corporation, Wheatland Tube heat. It may also be used for light load- EFFECTIVE DATE: May 24, 2002. Company and the United Steelworkers bearing and mechanical applications, FOR FURTHER INFORMATION CONTACT: Alex of America, AFL-CIO (collectively, such as for fence tubing, and for Villanueva or Amy Ryan at (202) 482– ‘‘Petitioners’’). protection of electrical wiring, such as 3208 and (202) 482–0961, respectively, On January 16, 2002, pursuant to a conduit shells, and for structural Import Administration, International request from Shuang Jie, the Department applications in general construction. It Trade Administration, U.S. Department postponed the final determination until primarily is made to American Society of Commerce, 14th Street and May 15, 2002. See Notice of for Testing and Materials (ASTM) A–53, Constitution Avenue, N.W., Postponement of Final Determination of A–135, and A–795 specifications, but Washington, DC 20230. Antidumping Duty Investigation: can also be made to the British Standard SUPPLEMENTARY INFORMATION: Certain Circular Welded Carbon-Quality (BS)-1387 specification.

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Structural pipe is intended for use in in effect until it is revoked by the name in the ‘‘Continuation of the construction of bridges and Department. See section 771(18)(C) of Suspension of Liquidation’’ section of buildings, and general structural the Act. The respondents in this this notice. applications. It also can be used for investigation have not requested a Surrogate Country making steel scaffolding and for piling revocation of the PRC’s NME status. applications. It primarily is made to Therefore, we have continued to treat For purposes of the final ASTM A–500 and A–252 specifications. the PRC as a NME in this investigation. determination, we continue to find that Hence, specifically included within For further details, see the Preliminary India remains the appropriate surrogate the scope of this investigation are Determination. country for the PRC. We received products stenciled to the ASTM comments from a respondent in its brief, standards A–53, A–135, A–795, A–120, Separate Rates which are discussed in the A–500, A–252, or their equivalents. In our Preliminary Determination, we accompanying Issues and Decision Standard and structural pipe products found that the mandatory respondents, Memorandum for the Antidumping Duty may also be produced to proprietary Baosteel, Shuang Jie and WeiFang, as Investigation of Circular Welded specifications rather than to industry well as the voluntary respondents, Carbon-Quality Steel Pipe from the standard. This is often the case with ZhuHai, Tai Feng Qiao, Walsall, People’s Republic of China: 10/1/00–03/ fence tubing, for example. Pangang International and Jinzhou met 31/01 at Comments 1 and 2 (May 15, The scope does not include boiler the criteria for the application of 2002) (‘‘Issues and Decision tubes, pressure tubing, mechanical separate, company-specific antidumping Memorandum’’). For further discussion tubing, finished conduit, oil country duty rates. We have not received any and analysis regarding the surrogate tubular goods (OCTG), and line pipe. other information since the Preliminary country selection for the PRC, see the However, with regard to these excluded Determination which would warrant Preliminary Determination and the products, if petitioners or other reconsideration of our separates rates Memorandum to Edward C. Yang from interested parties provide to the determination with respect to these Robert Bolling on Surrogate Country Department reasonable grounds to companies. For a complete discussion of Selection, on file in the Department’s believe or suspect that the products are the Department’s determination that the Central Records Unit, Room B–099 of being used in a standard or structural respondents are entitled to separate the Main Department of Commerce application, the Department may rates, see the Preliminary Building. instruct the U.S. Customs Service to Determination. Analysis of Comments Received require end-use certifications. In The PRC-Wide Rate addition, line pipe meeting the All issues raised in the case briefs by American Petroleum Institute (API) line In the Preliminary Determination, we parties to this investigation are pipe is excluded from the scope of this found that the use of adverse facts addressed in the Issues and Decision investigation, and any resultant available for the PRC-wide rate was Memorandum, which is adopted by this antidumping duty order, if covered by appropriate for other exporters in the notice. A list of the issues which parties the scope of another antidumping duty PRC based on our presumption that raised, and to which we have order from the same country. those respondents who failed to responded, all of which are in the Issues The standard pipe products that are demonstrate entitlement to a separate and Decision Memorandum, is attached the subject of this investigation are rate constitute a single enterprise under to this notice as an Appendix. A currently classifiable in the Harmonized common control by the Chinese complete discussion of all issues raised Tariff Schedule of the United States government. The PRC-wide rate applies in this investigation and the (HTSUS) subheadings 7306.30.10 and to all entries of the merchandise under corresponding recommendations in this 7306.30.50. This investigation also investigation except for entries from public memorandum, is on file in the covers dual-certified A–53/API or single Baosteel International, Tianjin Shuang Central Records Unit. In addition, a certified pipe that enters the United Jie, WeiFang, Zhuhai, Tai Feng Qiao, complete version of the Issues and States if its is used in, or intended for Walsall, Pangang International, and Decision Memorandum can be accessed use in, standard pipe or structural pipe Jinzhou. We received no comments on directly on the Internet at http:// applications. Such certified pipe may this decision and for this final ia.ita.doc.gov/. The paper copy and include API–5L or API–5L X–42 pipe. determination, we continue to believe electronic version of the Issues and Although the HTSUS subheadings are that use of adverse facts available for the Decision Memorandum are identical in provided for convenience and U.S. PRC-wide rate is appropriate. For content. Customs purposes, the written further discussion, see Preliminary Changes Since the Preliminary description of the merchandise under Determination. Determination investigation is dispositive. Margins for Cooperative Exporters Not Based on our findings at verification, Non-Market Economy Selected and analysis of comments received, we The Department has treated the PRC For our final determination, have made corrections to certain as a non-market economy (‘‘NME’’) consistent with our Preliminary respondents’ reported factor usage rates country in all its past antidumping Determination, we have calculated a and surrogate values . We have also investigations. See Notice of Final weight-averaged margin for ZhuHai, Tai corrected certain clerical errors in our Determination of Sales at Less Than Feng Qiao, Walsall, Pangang Preliminary Determination. These Fair Value: Honey from the People’s International, and Jinzhou based on the changes are discussed in the relevant Republic of China, 66 FR 50608 rates calculated for those exporters that sections of the Issues and Decision (October 4, 2001); Notice of Final were selected to respond in this Memorandum, the Memorandum to the Determination of Sales at Less Than investigation, excluding any rates that File: Factors Valuation for Baosteel, Fair Value: Certain Folding Gift Boxes are zero, de minimis or based entirely Shuang Jie and WeiFang and the from the People’s Republic of China, 66 on adverse facts available. See respective Analysis Memoranda for the FR 58115 (November 20, 2001). A Preliminary Determination. Companies Final Determination for Shuang Jie, designation as a NME country remains receiving this rate are identified by Baosteel and Weifang (May 15, 2002).

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Verification 28, 1997). Entries of such merchandise Comment 7: Treatment of Foreign As provided in section 782(i) of the will be subject to the ‘‘China-wide’’ rate. Inland Freight and Brokerage and Act, we verified the information Handling in Normal Value Calculation submitted by the mandatory CERTAIN CIRCULAR WELDED CARBON- [FR Doc. 02–13147 Filed 5–23–02; 8:45 am] respondents for use in our final QUALITY STEEL PIPE BILLING CODE 3510–DS–S determination. We used standard verification procedures including Weight- Averaged DEPARTMENT OF COMMERCE examination of relevant accounting and Producer/Manufacturer/Exporter Margin production records, and original source (Percent) International Trade Administration documents provided by the respondents. For changes from the Baosteel/Supplier A or Supplier [A–570–836] Preliminary Determination as a result of B ...... 0 Shuang Jie ...... 3.87 verification, see the respective analysis Glycine from the People’s Republic of WeiFang ...... 0 China: Initiation of Antidumping New memoranda. Tai Feng Qiao ...... 3.87 Shipper Review Continuation of Suspension of ZhuHai ...... 3.87 Liquidation Pangang International ...... 3.87 AGENCY: Import Administration, Jinzhou ...... 3.87 International Trade Administration, In accordance with section Walsall ...... 3.87 735(c)(1)(B)(ii) of the Act, we are PRC-Wide ...... 36.42 Department of Commerce. SUMMARY: directing the Customs Service to The Department of Commerce (the Department) has received a timely continue to suspend liquidation of International Trade Commission request from Tianjin Tiancheng entries of subject merchandise from the Notification PRC (except certain merchandise Pharmaceutical Co., Ltd. (Tiancheng) to exported by Baosteel and Weifang) that In accordance with section 735(d) of conduct a new shipper review of the are entered, or withdrawn from the Act, we have notified the antidumping duty order on glycine from warehouse, for consumption on or after International Trade Commission (‘‘ITC’’) the People’s Republic of China (PRC). In December 31, 2001. We will instruct the of our determination. As our final accordance with section 751(a)(2)(B) of Customs Service to require a cash determination is affirmative, the ITC the Tariff Act of 1930, as amended, and deposit or the posting of a bond equal will, within 45 days, determine whether 19 CFR 351.214(d) of the Department’s to the weighted-average amount by these imports are materially injuring, or regulations, we are initiating this new which the normal value exceeds the threaten material injury to, the U.S. shipper review. U.S. price, as indicated in the chart industry. If the ITC determines that EFFECTIVE DATE: May 24, 2002. below. These suspension-of-liquidation material injury, or threat of material FOR FURTHER INFORMATION CONTACT: instructions will remain in effect until injury does not exist, the proceeding Matthew Renkey, Office of AD/CVD further notice. will be terminated and all securities Enforcement VII, Import Under the Department’s NME posted will be refunded or canceled. If Administration, International Trade methodology, the rate for each the ITC determines that such injury Administration, U.S. Department of mandatory exporter is based on a does exist, the Department will issue an Commerce, 14th Street and Constitution comparison of the exporter’s U.S. price antidumping duty order directing Avenue, N.W., Washington, D.C. 20230; and NV based on the factors of Customs officials to assess antidumping telephone: (202) 482–2312. duties on all imports of subject production of a specific producer SUPPLEMENTARY INFORMATION: (which may be a different party). merchandise entered for consumption Therefore, the exclusion of the above on or after the effective date of the The Applicable Statute and Regulations suspension of liquidation. mentioned companies from an Unless otherwise indicated, all antidumping duty order (should one be This determination is issued and citations to the statute are references to issued) applies only to subject published in accordance with sections the Tariff Act of 1930, as amended (the merchandise exported by Baosteel and 735(d) and 777(i)(1) of the Act. Act). In addition, unless otherwise produced by its suppliers during the Dated: May 15, 2002 indicated, all citations to the period of investigation and to subject Faryar Shirzad, Department’s regulations are to the merchandise produced and exported by Assistant Secretary for Import current regulations, codified at 19 CFR Weifang. As Baosteel’s supplier names Administration. Part 351 (2002). are proprietary, they have been identified as Supplier A and Supplier B Appendix Background for this public document. However, the Comment 1: Market Economy Purchases On March 29, 2002, the Department supplier names have been identified in from Country X and Country Y received a timely request from Analysis Memo for the Preliminary Comment 2: Valuing a Respondent’s Tiancheng, in accordance with section Determination of Certain Circular Factors of Production using the other 751(a)(2)(B) of the Act and 19 CFR Welded Carbon-Quality Steel Pipe from Respondent’s Market Economy 351.214(c), for a new shipper review of the People’s Republic of China (‘‘PRC’’): Purchases this antidumping duty order on glycine Baosteel (May 15, 2002). Merchandise from the People’s Republic of China Comment 3: Surrogate Value for Hot- that is exported by Baosteel or Weifang, (‘‘PRC’’), which has a March anniversary Rolled Coil but manufactured by producers not date. On April 29, 2002, the Department noted below for that exporter will be Comment 4: Calculation of Zinc Usage returned the submission because it did subject to the order, if one is issued. See Ratio not meet the filing requirements of Notice of Final Determination of Sales Comment 5: Surrogate Companies used section 351.304(c) of the Department’s at Less Than Fair Value: Brake Drums for the Financial Ratios Calculation regulations. See the Memorandum to the and Brake Rotors from the People’s Comment 6: Iran’s Market Status in the File entitled ‘‘Initiation of New Shipper Republic of China, 62 FR 916 (February Surrogate Value Calculation Review of Glycine from the People’s

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Republic of China,’’ (May 17, 2002), a cash deposit for each entry of the SUPPLEMENTARY INFORMATION: which is on file in the Central Records merchandise exported by Tiancheng. Unit of the Department of Commerce. This action is in accordance with 19 The Applicable Statute: We requested that Tiancheng refile its CFR 351.214(e). Unless otherwise indicated, all request within two days in accordance The interested parties that need citations to the statute are references to with section 351.304(c) of the access to proprietary information in this the provisions effective January 1, 1995, regulations. On May 1, 2002, Tiancheng new shipper review should submit the effective date of the amendments properly filed its request for a new applications for disclosure under made to the Tariff Act of 1930 (‘‘the shipper review. administrative protective order in Act’’) by the Uruguay Round As required by 19 CFR accordance with 19 CFR 351.305 and Agreements Act (‘‘URAA’’). In addition, 351.214(b)(2)(i), (ii), and (iii)(A), 351.306. unless otherwise indicated, all citations Tiancheng has certified that it is both an This initiation and notice are in exporter and producer of glycine. It has to the Department of Commerce’s (the accordance with section 751(a) of the ‘‘Department’s’’) regulations are to 19 also certified that it did not export Act (19 U.S.C. 1675(a)) and 19 CFR CFR Part 351 (2001). glycine to the United States during the 351.214(d). period of investigation (‘‘POI’’), and that Dated: May 17, 2002 Background it has never been affiliated with any exporter or producer which exported Joseph A. Spetrini, This review covers the exporters glycine to the United States during the Deputy Assistant Secretaryfor Import China Jiangsu International Economic POI. See ‘‘Glycine from the People’s Administration, Group III. Technical Cooperation Corp. (CJIETCC) Republic of China; Request for New [FR Doc. 02–13149 Filed 5–23–02; 8:45 am] and Wonderful Chemical Industrial Shipper Administrative Review,’’ BILLING CODE 3510–DS–S Ltd./Jiangsu Taifeng Chemical Industry Exhibit 1, (March 29, 2002). Tiancheng (Wonderful/Jiangsu Taifeng). has further certified that its export DEPARTMENT OF COMMERCE On March 7, 2002, the Department of activities are not controlled by the Commerce published in the Federal central government of the PRC, pursuant International Trade Administration Register the preliminary results of to the requirements of 19 CFR administrative review of the [A–570–856] 351.214(b)(2)(iii)(B). See Id. Pursuant to antidumping duty order on synthetic the Department’s regulations at 19 CFR indigo from the People’s Republic of 351.214(b)(2)(iv)(A), Tiancheng Synthetic Indigo from the People’s China (PRC) (67 FR 10386) (Preliminary submitted documentation establishing Republic of China: Final Results of Results). the date of its first and only shipment Antidumping Duty Administrative of the subject merchandise to the United Review We invited parties to comment on the preliminary results of the review. No States, the date of entry of that first AGENCY: Import Administration, interested party submitted comments. shipment, the volume of that shipment, International Trade Administration, The Department has conducted this and the date of the first sale to an Department of Commerce. unaffiliated customer in the United administrative review in accordance ACTION: States. See Id. at Exhibit 2. Notice of final results of with section 751 of the Act. antidumping duty administrative Initiation of Review review. Scope of Order Because Tiancheng has provided the SUMMARY: On March 7, 2002, the The products subject to this order are required certifications and Department of Commerce published the the deep blue synthetic vat dye known documentation under section 351.303(g) preliminary results of the administrative as synthetic indigo and those of its of the regulations, we are initiating a review of the antidumping duty order derivatives designated commercially as new shipper review of the antidumping on synthetic indigo from the People’s ‘‘Vat Blue 1.’’ Included are Vat Blue 1 duty order on glycine from the PRC in Republic of China with respect to China accordance with section 751(a)(2)(B)(ii) (synthetic indigo), Color Index No. Jiangsu International Economic of the Act and 19 CFR 351.214(d). 73000, and its derivatives, pre-reduced In accordance with 19 CFR Technical Cooperation Corp., and indigo or indigo white ( Color Index No. 351.214(g)(1)(i)(A) of the Department’s Wonderful Chemical Industrial Ltd./ 73001) and solubilized indigo (Color regulations, the period of review (POR) Jiangsu Taifeng Chemical Industry. The Index No. 73002). The subject for a new shipper review, filed in the period of review is September 15, 1999, merchandise may be sold in any form the annual anniversary month, will be through May 31, 2001. No interested (e.g., powder, granular, paste, liquid, or the one-year period immediately party submitted comments on and we solution) and in any strength. Synthetic preceding the anniversary month. have made no changes to our indigo and its derivatives subject to this Therefore, the POR for this new shipper preliminary results. Therefore, the final order are currently classifiable under review is: results do not differ from the subheadings 3204.15.10.00, preliminary results. The final margin is 3204.15.40.00 or 3204.15.80.00 of the Antidumping duty pro- Period to be re- listed below in the ‘‘Final Results of Harmonized Tariff Schedule of the ceeding viewed Review’’ section of this notice. United States(HTSUS). Although the EFFECTIVE DATE: May 24, 2002. HTSUS subheadings are provided for Glycine from the PRC: ... FOR FURTHER INFORMATION CONTACT: convenience and customs purposes, the Tianjin Tiancheng Phar- written description of the merchandise maceutical Tiancheng) David J. Goldberger, Office 2, AD/CVD Co., Ltd ...... 03/01/01–02/28/02 Enforcement Group I, Import under the order is dispositive. Administration, International Trade Period of Review We will instruct the Customs Service Administration, U.S. Department of to allow, at the option of the importer, Commerce, 14th Street and Constitution The period of review covers the the posting, until the completion of the Avenue, NW, Washington, DC 20230; period September 15, 1999, through review, of a bond or security in lieu of telephone: (202) 482–4136. May 31, 2001.

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Final Results of the Review assessment of double antidumping Mass Spectral Database which is an Our final results remain unchanged duties. evaluated data collection containing from the preliminary results. As This notice also serves as the only electron ionization mass spectra for discussed in the Preliminary Results, reminder to parties subject to discrete chemical substances. The neither CJIETCC or Wonderful/Jiangsu administrative protective order (APO) of database is primarily used to aid in the Taifeng responded to the Department’s their responsibility concerning the identification of chemical compounds questionnaire. Accordingly, neither of disposition of proprietary information by providing a source for reference these companies established their disclosed under APO in accordance spectra for comparison to spectra entitlement to a separate rate in this with 19 CFR 351.305(a)(3). Timely acquired by commercial instruments, review and, therefore, are presumed to written notification of return/ especially spectra generated by gas chromatography/mass spectrometry. For be part of the PRC non-market economy destruction of APO materials or each spectrum, auxiliary information for (NME) entity and, as such, are subject to conversion to judicial protective order is chemical identification is provided, the PRC country-wide rate. Thus, the hereby requested. Failure to comply including chemical names, formulas, following margin applies for the period with the regulation and the terms of an chemical structures and related September 15, 1999, through May 31, APO is a sanctionable violation. This administrative review and notice information. The planned update will 2001, for those imports where the are in accordance with sections increase the number of spectra from exporter is CJIETCC or Wonderful/ 751(a)(1) and 777(i)(1) of the Act, and 19 130,000 to approximately 175,000 Jiangsu Taifeng: CFR 351.213. spectra, representing a wide variety of Dated: May 17, 2002 substances. The updated spectra will Manufacturer/producer/exporter Margin Percent Faryar Shirzad, provide wider coverage of compounds and a higher level of accuracy. This will Assistant Secretaryfor Import Administration. PRC-wide Rate ...... 129.60 increase the confidence of users of the [FR Doc. 02–13148 Filed 5–23–02; 8:45 am] library in identifying chemical Assessment Rates and Cash Deposit BILLING CODE 3510–DS–S substances. We invite comments Requirements concerning this update The Department shall determine, and DEPARTMENT OF COMMERCE Dated: May 20, 2002. the Customs Service shall assess, Karen H. Brown, antidumping duties on all appropriate National Institute of Standards and Deputy Director. entries. The Department will issue Technology [FR Doc. 02–13167 Filed 5–23–02; 8:45 am] appraisement instructions directly to [Docket No.: 020503108–2108–01] BILLING CODE 3510–13–P the Customs Service. The cash deposit rate for all shipments by CJIETCC or Notice of Intent To Update Existing Wonderful/Jiangsu Taifeng of the Electron Ionization Mass Spectral DEPARTMENT OF COMMERCE subject merchandise entered, or Library withdrawn from warehouse, for National Institute of Standards and consumption on or after the publication AGENCY: National Institute of Standards Technology date, will be the PRC-wide rate of and Technology, Commerce. 129.60 percent, as provided for by ACTION: Notice and request for Announcing a Meeting of the section 751(a)(1) of the Act. The cash comments. Computer System Security And deposit rate for PRC exporters who Privacy Advisory Board SUMMARY: The National Institute of received a separate rate in a prior Standards and Technology announces AGENCY: National Institute of Standards segment of the proceeding for which its intent to update its electron and Technology, Commerce. there was no request for administrative ionization mass spectral library. The ACTION: Notice of meeting. review will continue to be the rate update will increase the number of assigned in that segment of the SUMMARY: Pursuant to the Federal spectra from 130,000 to approximately proceeding. The cash deposit rate for Advisory Committee Act, 5 U.S.C. App., 175,000. Interested parties are invited to the PRC NME entity will continue to be notice is hereby given that the Computer submit comments to the address below. 129.60 percent, and the cash deposit System Security and Privacy Advisory rate for non-PRC exporters of subject DATES: Comments must be received by Board (CSSPAB) will meet Tuesday, merchandise from the PRC will June 24, 2002. June 11, 2002, from 9 a.m. until 4 p.m., continue to be the rate applicable to the ADDRESSES: Comments should be sent to Wednesday, June 12, 2002, from 8:30 PRC supplier of that exporter. These the attention of Dr. Stephen Stein at the a.m. until 4 p.m. and on Thursday, June deposit requirements shall remain in National Institute of Standards and 13, 2002, from 8:30 a.m. until 3 p.m. All effect until publication of the final Technology, Mail Stop 8380, 100 sessions will be open to the public. The results of the next administrative Bureau Drive, Gaithersburg, MD, 20899– Advisory Board was established by the review. 8520. Computer Security Act of 1987 (Pub. L. This notice serves as a final reminder FOR FURTHER INFORMATION CONTACT: Dr. 100–235) to advise the Secretary of to importers of their responsibility Stephen Stein by writing to the above Commerce and the Director of NIST on under 19 CFR 351.402(f) to file a address or by e-mail at security and privacy issues pertaining to certificate regarding the reimbursement [email protected] or by telephone federal computer systems. Details of antidumping duties prior to at (301) 975–2444. regarding the Board’s activities are liquidation of the relevant entries SUPPLEMENTARY INFORMATION: As part of available at http://csrc.nist.gov/csspab/. during this review period. Failure to its responsibilities under Title 15 U.S.C. DATES: The meeting will be held on June comply with this requirement could 290 to collect, evaluate and publish high 11, 2002, from 9 a.m. until 4 p.m., June result in the Secretary’s presumption quality Standard Reference Data (SRD), 12, 2002, from 8:30 a.m. until 4 p.m., that reimbursement of antidumping NIST creates and maintains evaluated and June 13, 2002, from 8:30 a.m. until duties occurred and the subsequent SRD databases. One such database is the 3 p.m.

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ADDRESSES: The meeting will take place DEPARTMENT OF COMMERCE Dated: May 20, 2002. at the National Security Agency’s Virginia M. Fay, National Cryptologic Museum, Colony 7 National Oceanic and Atmospheric Acting Director, Office of Sustainable Road, Annapolis Junction, Maryland. Administration Fisheries, National Marine Fisheries Service. Agenda [FR Doc. 02–13146 Filed 5–23–02; 8:45 am] [I.D. 051502B] BILLING CODE 3510–22–S —Welcome and Overview Advisory Committee to the U.S. —Review and Approval of CSSPAB Section to the International COMMITTEE FOR THE Privacy Report Commission for the Conservation of IMPLEMENTATION OF TEXTILE Atlantic Tunas (ICCAT); Summer —Updates on Recent Computer Security AGREEMENTS Legislation Workshop —Update by OMB on Privacy and AGENCY: National Marine Fisheries Adjustment of Import Limits for Certain Security Issues Service (NMFS), National Oceanic and Cotton and Man-Made Fiber Textile —Briefing on Good Baseline Security Atmospheric Administration (NOAA), Products Produced or Manufactured in Practices Commerce. Bangladesh —Briefing on Digital Millennium ACTION: Notice of public meeting. May 20, 2002. Copyrights Act AGENCY: Committee for the SUMMARY: The Advisory Committee to —Review of CSSPAB Work Plan Implementation of Textile Agreements the U.S. Section to ICCAT announces a (CITA). Priorities for 2002 and Planning for summer workshop to evaluate historical ACTION: Beyond landings of Atlantic bigeye, albacore, Issuing a directive to the Commissioner of Customs adjusting —Public Participation and yellowfin tunas and to assist in limits. —Agenda Development for September developing a program to improve statistical reporting for these species. 2002 CSSPAB meeting EFFECTIVE DATE: May 24, 2002. The Advisory Committee will also meet —Wrap-Up with the Status Review Team (SRT) for FOR FURTHER INFORMATION CONTACT: Ross Arnold, International Trade Specialist, Note that agenda items may change the petition to list white marlin under the Endangered Species Act (ESA) and Office of Textiles and Apparel, U.S. without notice because of possible Department of Commerce, (202) 482– unexpected schedule conflicts of to provide information to the SRT relative to the five ESA listing criteria. 4212. For information on the quota presenters. status of these limits, refer to the Quota DATES: Public Participation: The Board The workshop will be open to Status Reports posted on the bulletin agenda will include a period of time, the public and will be held on June 10, boards of each Customs port, call (202) not to exceed thirty minutes, for oral 2002, from 10 a.m. to 4:15 p.m. and on 927–5850, or refer to the U.S. Customs comments and questions from the June 11, 2002, from 8:45 a.m. to 12:30 website at http://www.customs.gov. For public. Each speaker will be limited to p.m. information on embargoes and quota re- five minutes. Members of the public ADDRESSES: The meeting will be held at openings, refer to the Office of Textiles who are interested in speaking are asked the Hilton Hotel Silver Spring, 8727 and Apparel website at http:// to contact the Board Secretariat at the Colesville Road, Silver Spring, MD otexa.ita.doc.gov. telephone number indicated below. In 20910. SUPPLEMENTARY INFORMATION: addition, written statements are invited FOR FURTHER INFORMATION CONTACT: Authority: Section 204 of the Agricultural and may be submitted to the Board at Erika Carlsen at (301) 713–2276. any time. Written statements should be Act of 1956, as amended (7 U.S.C. 1854); SUPPLEMENTARY INFORMATION: The directed to the CSSPAB Secretariat, Executive Order 11651 of March 3, 1972, as Advisory Committee to the U.S. Section amended. Information Technology Laboratory, 100 to ICCAT will meet in open session to The current limits for certain Bureau Drive, Stop 8930, National review and discuss (1) NMFS efforts to- categories are being adjusted for swing Institute of Standards and Technology, date to address bigeye, albacore, and and recrediting of unused carryforward. Gaithersburg, MD 20899–8930. It would yellowfin tunas data issues, (2) data A description of the textile and be appreciated if 35 copies of written inventories for bigeye, yellowfin, and apparel categories in terms of HTS material were submitted for distribution albacore tunas on a state-by-state basis, numbers is available in the to the Board and attendees no later than (3) approaches to data monitoring and CORRELATION: Textile and Apparel June 7, 2002. Approximately 15 seats reporting for bigeye, albacore, and Categories with the Harmonized Tariff will be available for the public and yellowfin tunas, (4) the process and Schedule of the United States (see media. timeline associated with the petition to Federal Register notice 66 FR 65178, FOR FURTHER INFORMATION CONTACT: Dr. list white marlin on the ESA, (5) white published on December 18, 2001). Also Fran Nielsen, Board Secretariat, marlin stock assessment results, and (6) see 66 FR 59409, published on Information Technology Laboratory, information relating to white marlin November 28, 2001. National Institute of Standards and with respect to the ESA listing factors. J. Hayden Boyd, Technology, 100 Bureau Drive, Stop Special Accommodations Acting Chairman, Committee for the 8930, Gaithersburg, MD 20899–8930, Implementation of Textile Agreements. telephone: (301) 975–3669. The meeting location is physically accessible to people with disabilities. Committee for the Implementation of Textile Dated: May 20, 2002. Requests for sign language Agreements Karen H. Brown, interpretation or other auxiliary aids May 20, 2002. Deputy Director. should be directed to Erika Carlsen at Commissioner of Customs, [FR Doc. 02–13168 Filed 5–23–02; 8:45 am] (301) 713–2276 at least 5 days prior to Department of the Treasury, Washington, DC BILLING CODE 3510–CN–P the meeting date. 20229.

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Dear Commissioner: This directive information on embargoes and quota re- Sincerely, amends, but does not cancel, the directive openings, refer to the Office of Textiles J. Hayden Boyd, issued to you on November 21, 2001, by the and Apparel website at http:// Acting Chairman, Committee for the Chairman, Committee for the Implementation www.otexa.ita.doc.gov. Implementation of Textile Agreements. of Textile Agreements. That directive [FR Doc. 02–13080 Filed 5–23–02; 8:45 a.m. concerns imports of certain cotton and man- SUPPLEMENTARY INFORMATION: BILLING CODE 3510–DR–S made fiber textile products, produced or Authority: Section 204 of the Agricultural manufactured in Bangladesh and exported Act of 1956, as amended (7 U.S.C. 1854); during the twelve-month period which began Executive Order 11651 of March 3, 1972, as on January 1, 2002 and extends through COMMODITY FUTURES TRADING amended. December 31, 2002. COMMISSION Effective on May 24, 2002, you are directed The current limits for certain to adjust the limits for the following categories are being adjusted swing and Sunshine Act Meeting categories, as provided for under the Uruguay carryforward. Round Agreement on Textiles and Clothing: A description of the textile and Time and Date: 10 a.m., Thursday, apparel categories in terms of HTS May 30, 2002. Place: 1155 21st Street, NW., Category Adjusted twelve-month numbers is available in the limit 1 CORRELATION: Textile and Apparel Washington, DC, Room 1000. Categories with the Harmonized Tariff Status: Open. 237 ...... 732,265 dozen. Schedule of the United States (see Matters to be Considered: Securities 335 ...... 393,605 dozen. Futures Products Rulemakings. 336/636 ...... 689,167 dozen. Federal Register notice 66 FR 65178, 341 ...... 3,591,911 dozen. published on December 18, 2001). Also CONTACT PERSON FOR FURTHER 347/348 ...... 3,773,933 dozen. see 67 FR 870, published on January 8, INFORMATION: Jean A. Webb, 202–418– 363 ...... 39,883,802 numbers. 2002. 5100. 638/639 ...... 2,637,039 dozen. 641 ...... 1,601,978 dozen. J. Hayden Boyd, Jean A. Webb, 645/646 ...... 619,279 dozen. Acting Chairman, Committee for the Secretary of the Commission. Implementation of Textile Agreements. [FR Doc. 02–13194 Filed 5–21–02; 4:58 pm] 1 The limits have not been adjusted to ac- count for any imports exported after December Committee for the Implementation of Textile BILLING CODE 6351–01–M 31, 2001. Agreements The Committee for the Implementation of May 20, 2002. Textile Agreements has determined that Commissioner of Customs, DEPARTMENT OF DEFENSE these actions fall within the foreign affairs Department of the Treasury, Washington, DC exception of the rulemaking provisions of 5 20229. Department of the Army U.S.C. 553(a)(1). Dear Commissioner: This directive Sincerely, amends, but does not cancel, the directive Armed Forces Epidemiological Board; J. Hayden Boyd, issued to you on January 3, 2002, by the Meeting Acting Chairman, Committee for the Chairman, Committee for the Implementation AGENCY: Department of the Army, DoD. Implementation of Textile Agreements. of Textile Agreements. That directive [FR Doc.02–13079 Filed 5–23–02; 8:45 am] concerns imports of certain cotton, wool and ACTION: Notice of open meeting. BILLING CODE 3510–DR–S man-made fiber textile products, produced or manufactured in Cambodia and exported SUMMARY: In accordance with section during the twelve-month period which began 10(a)(2) of the Public Law 92–463, The COMMITTEE FOR THE on January 1, 2002 and extends through Federal Advisory Committee Act, this IMPLEMENTATION OF TEXTILE December 31, 2002. announces the forthcoming working AGREEMENTS Effective on May 29, 2002, you are directed group meeting: to adjust the limits for the following Name of Committee: Armed Forces Adjustment of Import Limits for Certain categories, as provided for in the agreement Epidemiological Board (AFEB). between the Governments of the United Dates of Meeting: June 18, 2002. Cotton, Wool and Man-Made Fiber States and Cambodia: Textile Products Produced or Time: 7:30 a.m.–4:30 p.m. Manufactured in Cambodia Proposed Agenda: The purpose of the Category Adjusted twelve-month limit 1 meeting is to make recommendations on May 20, 2002. the health risk of low-level phased array AGENCY: Committee for the 331/631 ...... 1,045,003 dozen pairs. radio frequency energy emissions, Implementation of Textile Agreements 334/634 ...... 232,844 dozen. specifically risk associated with the (CITA). 335/635 ...... 89,028 dozen. PAVE PAWS radar site at the ACTION: Issuing a directive to the 338/339 ...... 3,855,021 dozen. Massachusetts Military Reservation. Commissioner of Customs adjusting 340/640 ...... 1,027,252 dozen. As part of the deliberations, the 345 ...... 128,748 dozen. working group of the AFEB will travel limits. 347/348/647/648 ...... 4,323,388 dozen. 352/652 ...... 756,852 dozen. to the Massachusetts Military EFFECTIVE DATE: May 29, 2002. 445/446 ...... 90,050 dozen. Reservation. The meeting location will FOR FURTHER INFORMATION CONTACT: Roy 638/639 ...... 1,232,701 dozen. be at the Massachusetts Military Unger, International Trade Specialist, 645/646 ...... 243,660 dozen. Reservation, Building 1204, Camp Office of Textiles and Apparel, U.S. Edwards, MA 02542. 1 The limits have not been adjusted to ac- Department of Commerce, (202) 482– count for any imports exported after December FOR FURTHER INFORMATION CONTACT: Lt. 4212. For information on the quota 31, 2001. Col. James R. Riddle, Executive status of these limits, refer to the Quota The Committee for the Implementation of Secretary, Armed Forces Status Reports posted on the bulletin Textile Agreements has determined that Epidemiological Board, Skyline Six, boards of each Customs port, call (202) these actions fall within the foreign affairs 5109 Leesburg Pike, Room 682, Falls 927–5850, or refer to the U.S. Customs exception of the rulemaking provisions of 5 Church, Virginia 22041–3258, (703) website at http://www.customs.gov. For U.S.C. 553(a)(1). 681–8012/3.

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SUPPLEMENTARY INFORMATION: Any SUMMARY: In accordance with 37 CFR (301) 619–6664, both at telefax (301) interested person may file statements 404.6 and 404.7, announcement is made 619–5034. with the committee to be considered at of the availability for licensing of the SUPPLEMENTARY INFORMATION: the time and in the manner permitted by invention described in U.S. Patent Antibodies for binding epitopes of the committee. Application no. 60/288,925 entitled BoNT/A and hybridomas which ‘‘Lateral Visual Field Testing Device Luz D. Ortiz, produce such antibodies are described. (LVFT),’’ filed May 7, 2001. The United Army Federal Register Liaison Officer. The antibodies of the present invention States Government, as represented by [FR Doc. 02–13041 Filed 5–23–02; 8:45 am] can be used in a method for detecting the Secretary of the Army has rights in BoNT/A in a sample and/or in a method BILLING CODE 3710–08–M this invention. for purifying BoNT/A from an impure ADDRESSES: Commander, U.S. Army solution. In addition, the antibodies can DEPARTMENT OF DEFENSE Medical Research and Materiel to be used for passive immunization Command, ATTN: Command Judge against BoNT/A intoxication or as Department of the Army Advocate, MCMR–JA, 504 Scott Street, intoxication therapy. Another aspect of Fort Detrick, Frederick, MD 21702– the invention is a kit for detecting Reserve Officers’ Training Corps 5012. BoNT/A in a sample. Program Subcommittee; Meeting FOR FURTHER INFORMATION CONTACT: For Luz D. Ortiz, AGENCY: Department of the Army, DoD. patent issues, Ms. Elizabeth Arwine, Army Federal Register Liaison Officer. ACTION: Notice of open meeting. Patent Attorney, (301) 619–7808. For [FR Doc. 02–13045 Filed 5–23–02; 8:45 am] licensing issues, Dr. Paul Mele, Office of BILLING CODE 3710–08–M SUMMARY: In accordance with section Research & Technology Assessment, 10(a)(2) The Federal Advisory (301) 619–6664, both at telefax (301) Committee Act (5 U.S.C., App. 2), 619–5034. DEPARTMENT OF DEFENSE announcement is made of the following meeting: SUPPLEMENTARY INFORMATION: The LVFT is intended to test peripheral visual Department of the Army; Corps of Name of Committee: Reserve Officers’ Engineers Training Corps (ROTC) Program awareness of the lateral visual fields in Subcommittee. a complex environment where multitasking is the norm. Intent to Prepare a Draft Environmental Dates of Meeting: June 25–28, 2002. Impact Statement for the ACME Basin Time: 8 a.m.–5 p.m. (June 25, 2002), Luz D. Ortiz, B Discharge Project 8 a.m.–12 p.m. (June 26, 2002), 8 a.m.– Army Federal Register Liaison Officer. 5 p.m. (June 27, 2002). AGENCY: Department of the Army, U.S. [FR Doc. 02–13046 Filed 5–23–02; 8:45 am] Location: Fort Lewis, Tacoma, WA. Army Corps of Engineers, DoD. Proposed Agenda: Review and BILLING CODE 3710–08–M ACTION: discuss status of Army ROTC since the Notice of intent. July 2001 meeting, held at the Pentagon, DEPARTMENT OF DEFENSE SUMMARY: The U.S. Army Corps of Washington, DC, and tour and observe Engineers (Corps), Jacksonville District ROTC cadet training at the National Department of the Army intends to prepare an integrated Project Advanced Leadership Camp (NALC), Implementation Report/Draft Fort Lewis, WA. Availability for Non-Exclusive, or Environmental Impact Statement (PIR/ FOR FURTHER INFORMATION CONTACT: Partially Exclusive Licensing of U.S. DEIS) for the ACME Basin B Discharge Commander, U.S. Army Cadet Patent Application Concerning Project. The study is a cooperative effort Command, ATTN: ATCC–TT (Mrs. Antibodies Against Type A Botulinum between the Corps and the South Johnson), Fort Monroe, VA 23651. Neurotoxin Florida Water Management District Telephone number is (757) 788–4586. (SFWMD), which is also a cooperating AGENCY: SUPPLEMENTARY INFORMATION: This Department of the Army, DOD agency for this DEIS. One of the meeting is open to the public. Any ACTION: Notice. recommendations of the final report of interested person may attend, appear the Central & South Florida (C&SF) SUMMARY: In accordance with 37 CFR before, or file statements with the Comprehensive Review Study (Restudy) 404.6 and 404.7, announcement is made committee. was the implementation of Other Project of the availability for licensing of U.S. Elements (OPE) including the ACME Luz D. Ortiz, Patent Application No. 09/465,276 Basin B Discharge Project. This project Army Federal Register Liaison Officer. entitled ‘‘Antibodies Against Type A is intended to provide water quality [FR Doc. 02–13047 Filed 5–23–02; 8:45 am] Botulinum Neurotoxin,’’ filed December treatment and possible temporary BILLING CODE 3710–08–M 16, 1999. The United States storage of stormwater for the Acme Government, as represented by the basin within the Village of Wellington Secretary of the Army has rights in this prior to discharge to the Arthur R. DEPARTMENT OF DEFENSE invention. Marshall Loxahatchee National Wildlife Department of the Army ADDRESSES: Commander, U.S. army Refuge. Excess water may be used to Medical Research and Materiel meet water supply demands in central Availability for Non-Exclusive, Command, ATTN: Command Judge and southern Palm Beach County. This Exclusive, or Partially Exclusive Advocate, MCMR–JA, 504 Scott Street, project is a component of the Licensing of U.S. Patent Application Fort Detrick Frederick, MD 21702–5012. Comprehensive Everglades Restoration Concerning Lateral Visual Field FOR FURTHER INFORMATION CONTACT: For Plan, a multi-year effort to restore the Testing Device patent issues, Ms. Elizabeth Arwine, greater Everglades ecosystem while AGENCY: Department of the Army, DOD. Patent Attorney, (301) 619–7808. For providing water supply and other water- licensing issues, Dr. Paul Mele, Office of related benefits to South Florida over ACTION: Notice. Research & Technology Assessment, many decades.

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FOR FURTHER INFORMATION CONTACT: Mr. not limited to, water quality, socio- DEPARTMENT OF DEFENSE Brad Tarr, U.S. Army Corps of economic, archaeological and biological. Engineers, Planning Division, In addition to adverse impacts, the Department of the Army; Corps of Environmental Branch, P.O. Box 4970, evaluation will also focus on how well Engineers Jacksonville, FL, 32232–0019, by email the plans perform with regard to Intent To Prepare a Draft [email protected], or by specific performance measures. telephone at 904–232–3582. Environmental Impact Statement for e. Issues: The EIS will address the the Montauk Point Storm Damage SUPPLEMENTARY INFORMATION: impacts of pumping stormwater runoff Reduction Project, Town of East a. Authorization: The authority for from ACME Basin B into a wetland Hampton, Suffolk County, Long Island, this project is contained within the treatment area, then into a storage NY Water Resources Development Act reservoir prior to discharging into the (WRDA) 2000. The ‘‘Design Agreement Loxahatchee National Wildlife Refuge. If AGENCY: Department of the Army, U.S. between the Department of the Army water quality treatment criteria is not Army Corps of Engineers, DoD. and the SFWMD for the Design of ACTION: Notice of intent. Elements of the Comprehensive Plan for met then water will be discharged into one of two alternative locations: the the Everglades and South Florida SUMMARY: The U.S. Army Corps of Palm Beach County Agricultural Ecosystem Restoration Project’’ contains Engineers (USACE), New York District, Reserve Reservoir or the combination additional guidance. is preparing a Draft Environmental b. Study Area: The study are, above ground and in-ground reservoir Impact Statement (DEIS) to ascertain including the wetland and/or chemical area located adjacent to the L–8 Borrow compliance with and to lead to the treatment area and/or storage Canal and north of the C–51 Canal. production of a National Environmental impoundment area, includes the entire The EIS will also address Policy Act (NEPA) document in 8,680-acre Acme Basin B, located environmental issues, water quality; accordance with the President’s Council adjacent to the Loxahatchee National impacts to the estuaries; flood of Environmental Quality (CEQ) Rules Wildlife Refuge in Palm Beach County. protection; aesthetics and recreation; and Regulations, as defined and c. Project Scope. The Acme Bsasin B fish and wildlife resources, including amended in 40 Code of Federal project may include the construction of protected species; cultural resources; Regulations (CFR), parts 1500–1508, a wetland or chemical treatment area and other impacts identified through USACE principals and guidelines as and a storage reservoir adjacent to the scoping, public involvement, and defined in Engineering Regulation (ER) Refuge located in Palm Beach County. interagency coordination. 1105–2–100, and other applicable The final size, depth and configuration Federal and State environmental laws of these facilities will be determined f. Scoping: A scoping letter and public for the proposed Storm Damage through more detailed planning and workshops will be used to invite Reduction Project at the Montauk Point design. comments on alternatives and issues Lighthouse in Montauk, New York. The The purpose of this feature is to from federal, State, and local agencies, study area consists of the Montauk Point provide water quality treatment and affected Indian tribes, and other Lighthouse bluff in the Town of East possible stormwater attenuation for interested private organizations and Hampton, Long Island, New York. runoff from Acme Basin B prior to individuals. The next public workshop FOR FURTHER INFORMATION CONTACT: discharge to the Arthur R. Marshall is scheduled for 22 May 2002; at the Christopher Ricciardi, Project Loxahatchee National Wildlife Refuge or South Florida Water Management Archaeologist, Planning Division, U.S. an alternative location. In the event that District headquarter, located at 3301 Army Corps of Engineers, New York excess water (above the amount needed Gun Club Road, West Palm Beach, District, 26 Federal Plaza, Room 2131, by the natural system) is available, an Florida. The meeting will begin at 6:30 New York, New York, 10278–0090 at alternative discharge location will be p.m. and continue to 10 p.m. (212) 264–0204 or at determined. [email protected]. The study will evaluate alternatives Other public meetings will be held based on their ability to improve water over the course of the study; the exact SUPPLEMENTARY INFORMATION: This study deliveries to the natural system, manage location, dates, and times will be is authorized by a U.S. House of agricultural and urban water supplies, announced in public notices and local Representatives Resolution adopted protect and conserve water resources, newspapers. May 15, 1991 to provide, in part, storm protect or restore fish and wildlife and g. DEIS Preparation: The integrated damage protection for the bluff and their associated habitat, restore and draft PIR, which will include a DEIS, is lighthouse. manage wetland and associated upland currently scheduled for publication in 1. A public scoping meeting was held ecosystems, sustain economic and May 2003. in November of 2001 and the results natural resources, improve water were collected in the Public Scoping quality, and other performance criteria Dated: May 8, 2002. Document. These results are available being developed by the Project Delivery George M. Strain, for review and additional scoping Team. Acting Chief, Planning Division. comments. All results from public and d. Preliminary Alternatives: [FR Doc. 02–13043 Filed 5–23–02; 8:45 am] agency scoping coordination will be Formulation of alternative plans will BILLING CODE 3710–AS–M addressed in the DEIS. Parties interested involve the selection of the most in receiving the Scoping Document suitable size, depth, and configuration should contact Christopher Ricciardi at of facilities through detailed planning the above address. and design. 2. A DEIS is due for completion by The Environmental Impact Statement March 2003. (EIS) evaluation of the project will 3. Federal agencies interested in include an evaluation of adverse participating as a Cooperating Agency environmental impacts, including but are requested to submit a letter of intent

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to COL John B. O’Dowd, District scoping meetings are planned years. The ER further states that the Engineer, at the above address. throughout the study area. The meetings Districts are encouraged to consider are tentatively scheduled at 7:00 p.m. options that provide opportunities for Luz D. Ortiz, for the following dates, in the following beneficial uses of dredged material for Army Federal Register Liaison Officer. locations: Wednesday, June 12, 2002 at environmental purposes including [FR Doc. 02–13042 Filed 5–23–02; 8:45 am] Queen Anne’s County Library in habitat restoration. The DMMP process BILLING CODE 3710–06–M Stevensville, MD; Tuesday, June 18, began with a Preliminary Assessment 2002 at Community College of Baltimore that was completed in September 2001. County, Dundalk Campus, Campus The Preliminary Assessment identified DEPARTMENT OF DEFENSE Community Center, in Baltimore, MD; placement option shortfalls within the Department of the Army; Corps of and Thursday, June 20, 2002 at Anne next 8–10 year time frame. Engineers Arundel Community College, Lecture 3. As part of the EIS process, Hall 101, in Arnold, MD. recommendations of placement sites Intent To Prepare a Draft The study will be conducted in and options for dredged material Environmental Impact Statement for a compliance with Section 404 and management will be based on an Dredged Material Management Plan for Section 401 of the Clean Water Act, evaluation of the probable impact of the the Port of Baltimore, Chesapeake Bay, Section 7 of the Endangered Species proposed activity on the public interest. MD Act, the Clear Air Act, the U.S. Fish and The decision will reflect the national Wildlife Coordination Act, Section 106 concern for the protection and AGENCY: Department of the Army, U.S. of the National Historic Preservation utilization of important resources. The Army Corps of Engineers, DoD. Act, Prime and Unique Farmlands, the benefit, which may reasonably be ACTION: Notice of intent. Magnuson-Stevens Fishery expected to accrue from the proposal, will be balanced against its reasonably SUMMARY: In accordance with the Conservation and Management Act, and National Environmental Policy Act National Pollutant Discharge foreseeable detriments. All factors that (NEPA) of 1969, the Baltimore District, Elimination System Act. All appropriate may be relevant to the proposal will be U.S. Army Corps of Engineers (USACE) documentation (i.e., Section 7, section considered, among there are wetlands; will conduct a study to evaluate the 106 coordination letters, and public and fish and wildlife resources; cultural dredged material placement needs and agency comments) will be obtained and resources; land use; water and air opportunities for the Port of Baltimore, included as part of the Environmental quality; hazardous, toxic, and Maryland and develop a Dredged Impact Statement (EIS). radioactive substances; threatened and Material Management Plan (DMMP). FOR FURTHER INFORMATION CONTACT: endangered species; regional geology; The study area encompasses the Questions about the proposed action aesthetics; environmental justice; and Baltimore Harbor and the Chesapeake and draft EIS can be addressed to Ms. the general needs and welfare of the Bay approach channels, which extend Michele Bistany, U.S. Army Corps of public. from the mouth of the Bay in Virginia Engineers, ATTN: CENAB–PL, 10 South 4. The draft EIS for the DMMP is to Chesapeake and Delaware Canal, in Howard Street, PO Box 1715, Baltimore, expected for public release in late 2004. the upper Bay, Maryland/Delaware. The MD 21203–1715, telephone 410–962– Mr. Kevin Bunker, purpose of the plan is to develop a long- 4934; e-mail address: Assistant Chief, Planning Division. [email protected]. term strategy for providing viable [FR Doc. 02–13048 Filed 5–23–02; 8:45 am] placement alternatives that meet the SUPPLEMENTARY INFORMATION: BILLING CODE 3710–41–M dredging needs of the Port of Baltimore 1. The Baltimore District Corps of Federal channels and include Engineers is responsible for the consideration of state and local dredging maintenance of navigation channels in DEPARTMENT OF DEFENSE needs. The DMMP study will be the Chesapeake Bay and Patapsco River evaluated through the preparation of a known as the Baltimore Harbor and Department of the Army; Corps of tiered EIS. As part of the process, the Channels project. Maintenance of these Engineers goals and objectives of the study will be channels requires the annual placement clearly determined by all study of approximately 4.5 million cubic Intent To Prepare an Integrated Draft participants. The DMMP will identify yards of dredged material. The DMMP Project Implementation Report/ the quantity of material to be dredged study will include an associated Environmental Impact Statement for from the Federal channels and how the programmatic tiered EIS to allow for the Southern Golden Gate Estates dredged material can be managed in an identification of a suite of options or Hydrologic Restoration economically and environmentally projects for future detailed study in AGENCY: Department of the Army, U.S. acceptable manner. Priority will be order to provide for long-term optimized Army Corps of Engineers, DoD. given to beneficial uses of the material. capacity of dredged material. The tiered ACTION: Notice of intent. Beneficial uses include, but are not EIS allows all interested parties the limited to, restoration of underwater opportunity to participate in the process SUMMARY: The U.S. Army Corps of grasses, islands, wetlands, shorelines, or from inception. It also includes Engineers (Corps) Jacksonville District fish and shellfish habitat. The DMMP adequate environmental analysis so that intends to prepare an integrated Draft will identify,evaluate, screen, prioritize, future NEPA documentation can be Project Implementation Report/ and ultimately optimize placement based on a solid foundation. Environmental Impact Statement (DPIR/ alternatives resulting in the 2. The USACE, Engineering EIS) for the Southern Golden Gate recommendation of a plan for the Regulation (ER) 1105–2–100 mandates Estates Hydrologic Restoration placement of dredged materials for at that the Corps Districts develop DMMP (SGGEHR). This DPIR/EIS is a least the next 20 years. The Baltimore plans for all Federal harbor projects cooperative effort between the Corps District is actively seeking public where there is an indication of and the South Florida Water opinion and advice to be incorporated insufficient capacity to accommodate Management District (SFWMD). The into the plan. To this end, three public maintenance dredging for the next 20 SGGEHR planning process is authorized

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under Section 601 of the Water reduce the number of miles of roadway, Management Plan (PMP) for the SGGE Resources Development Act (WRDA) of and reestablish a more natural restoration project. The PMP was 2000 as part of the Central and Southern hydrology. Accomplishment of these presented to the Big Cypress Basin Florida (C&SF) Comprehensive objectives is expected to restore historic Board of Directors at a public meeting Everglades Restoration Plan (CERP). The native plant communities and improve in February of 2001. During the past 24 objective of this project is to restore the habitat for fish and wildlife resources. years local and state agencies have held hydrology of Southern Golden Gate d. Preliminary Alternatives: The numerous meetings to gather input on Estates (SGGE) to that which existed DPIR/EIS will evaluate alternative issues and opportunities involving the prior to the 1960’s real estate structural and non-structural measures restoration of SGGE. subdivision. Development of SGGE to modify the existing water g. DPIR/EIS Preparation: The created approximately 20,000 separate management system of SGGE to integrated DPIR/EIS is scheduled for parcels of land, 70 miles of drainage accomplish the following objectives: publication in June 2005. Establish more uniform freshwater flows canals, and 290 miles of roads. Dated: May 8, 2002. to estuaries, restore historic hydro Elimination of the home sites, plugging George M. Strain, of the canals, reduction in the number patterns, restore wetland and upland Acting Chief, Planning Division. of miles of roadway, and the communities, reduce habitat for reestablishment of a more natural invasive non-native species, increase [FR Doc. 02–13044 Filed 5–23–02; 8:45 am] hydrology are expected to restore native aquifer recharge, restore ecological BILLING CODE 3710–AJ–M plant communities and improve habitat connectivity among public lands, for fish and wildlife resources. restore habitat for listed species, increase fish and wildlife resources, DEPARTMENT OF EDUCATION FOR FURTHER INFORMATION CONTACT: John restore the natural fire regime, Kremer, U.S. Army Corps of Engineers, [CFDA 84.184B] remediate or remove chemical Planning Division, Environmental contaminants, maintain existing level of Branch, PO Box 4970, Jacksonville, FL, Mentoring Programs; Notice Inviting flood protection, and maintain 32232–0019, by e-mail Applications for New Awards for Fiscal appropriate access for managing [email protected], or by Year (FY) 2002 agencies and public users of the state telephone at 904–232–3551. forest. Purpose of Program: This program SUPPLEMENTARY INFORMATION: e. Issues: The integrated DPIR/EIS provides assistance to promote a. Authorization: The Southern will address the following issues: mentoring programs for children with Golden Gate Estates Hydrologic restoration of wetlands and upland greatest need that: (1) Assist these Restoration PMP and PIR planning ecosystems; water flows; future children in receiving support and process is authorized under Section 601 environmental and urban water demand guidance from a mentor; (2) improve the of the Water Resources Development and supply; socio-economic resources; academic performance of the children; Act (WRDA) of 2000 as part of the aquifer recharge; water quality; impacts (3) improve interpersonal relationships Central and Southern Florida (C&SF) to the estuaries; flood protection; between the children and their peers, Comprehensive Everglades Restoration aesthetics and recreation; fish and teachers, other adults, and family Plan (CERP). wildlife resources, state and federal members; (4) reduce the dropout rate of b. Study Area: Southern Golden Gate protected species; cultural resources; the children; and (5) reduce the Estates encompasses an area of and other impacts identified through children’s juvenile delinquency and approximately 94 square miles (60,160 further scoping, public involvement, involvement in gangs. acres) in southwestern Collier County, and interagency coordination. Eligible Applicants: (1) Local Florida. It is located between Interstate f. Scoping: The SGGE project has had educational agencies (LEAs); (2) 75 and U.S. Highway 41. SGGE is a long history of public and interagency nonprofit, community-based located southwest of the Florida Panther involvement dating back to the 1978 organizations (CBOs), which may National Wildlife Refuge, north of the Congressional authorization for the include faith-based organizations; and Ten Thousand Islands Aquatic Preserve Corps to prepare a Golden Gate Estates (3) a partnership between an LEA and and the Ten Thousand Islands National (GGE) Feasibility Study. The Corps a CBO. Wildlife Refuge, east of the Belle Meade published the GGE Feasibility Study in State Conservation and Recreation Note: We strongly encourage partnerships 1986. In February of 1996 the Big between LEAs and CBOs that propose school- Lands Project Area, and west of the Cypress Basin/South Florida Water based mentoring programs. Fakahatchee Strand State Preserve. In Management District submitted the combination with the Belle Meade tract ‘‘Hydrologic Restoration of Southern Applications Available: May 24, 2002. SGGE will be managed as the Picayune Golden Gate Estates—Conceptual Plan’’ Deadline for Transmittal of Strand State Forest. Northern Golden to the Governor of Florida. In January Applications: July 2, 2002. Gate Estates (NGGE) lies across 1997 the Interagency Technical Deadline for Intergovernmental Interstate 75 to the north of SGGE. Advisory Committee (ITAC) convened Review: September 2, 2002. c. Project Scope: Implementation of with respresetatives from the Corps, Estimated Available Funds: this project would restore a more U.S. Fish and Wildlife Service, U.S. $17,500,000. natural hydrology in Southern Golden Geological Survey, FDEP, Florida Game Estimated Range of Awards: Gate Estates by reintroducing sheet and Fresh Water Fish Commission and $100,000–$200,000. Estimated Average Size of Awards: flow, reestablishing historic flow ways, others, to provide input and assistance $150,000. reducing runoff through increased for the Cooperative Watershed Planning Estimated Number of Awards: 115. evaporation and groundwater recharge, Assistance Study led by USDA–NRCS and by replacing point source and SFWMD. NRCS published this Note: The Department is not bound by any discharges from the Faka Union Canal study in September 2001. In September estimates in this notice. with distributed flow to tidal coastal 2000, utilizing the expertise of the Project Period: Up to 36 months. marshes along U.S. highway 41. The ITAC, the Corps and SFWMD jointly Applicable Regulations: (a) The proposed project would plug the canals, initiated the development of a Project Education Department General

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Administrative Regulations (EDGAR) in encouragement of graduation from General Information 34 CFR parts 74, 75, 77, 79, 80, 81, 82, secondary school and planning for The Assistant Secretary may take into 85, 97, 98, and 99; and (b) the final postsecondary education or training. consideration the geographic priorities, selection criteria and (vii) Discourage involvement in gangs. Grant funds must be used for distribution of the projects, including definitions for this grant competition as urban and rural locations, in addition to published in this notice. activities that establish or implement a mentoring program, which may include: the rank order of applicants. To the Priorities 1. Hiring of mentoring coordinators extent practicable, the Assistant Secretary will select not less than one Statutory Priority: This competition and support staff; grant recipient from each State for focuses exclusively on projects designed 2. Providing for the professional which there is an eligible entity that to meet the statutory priority in section development of mentoring coordinators submits an application of sufficient 4130(b)(5)(B) of the Elementary and and support staff; quality. Contingent upon the availability Secondary Education Act (ESEA), as 3. Recruitment, screening, and of funds, the Assistant Secretary may amended by the No Child Left Behind training of mentors; make additional awards in FY 2003 Act of 2001. 4. Reimbursement to schools, if from the rank-ordered list of unfunded To be eligible for funding, a project appropriate, for the use of school applications from this competition. must propose mentoring programs and materials or supplies in carrying out the mentoring program; activities to serve children with the 5. Dissemination of outreach Application Requirements greatest need living in rural areas, high- materials; and Applications submitted under this crime areas, troubled home 6. Evaluation of the mentoring program must include the following: environments, or who attend schools program using scientifically based (1) A description of the plan for the with violence problems. methods. mentoring program the eligible entity For FY 2002 this priority is an proposes to carry out; absolute priority. Under 34 CFR Participation by Private School Children (2) Information on the children 75.105(c)(3) we consider only and Teachers expected to be served by the mentoring applications that meet this priority. LEAs that receive a Mentoring program; Competitive Preference Priority: Programs grant are required to provide (3) A description of the mechanism Within the statutory priority for this for the equitable participation of eligible the eligible entity will use to match competition for FY 2002, we will award private school students and their children with mentors based on the five additional points to novice teachers or other educational personnel. needs of the children; applicants. These points are in addition In order to ensure that grant program (4) Information regarding how to any points the application earns activities address the needs of private mentors and children will be recruited under the selection criteria for this school children, timely and meaningful to the mentoring program; program. consultation with appropriate private (5) Information regarding how Note: The total number of points an school officials must occur during the prospective mentors will be screened; application may earn is 105. design and development of the program. (6) Information on the training that Administrative direction and control will be provided to mentors; and Requirements over grant funds must remain with the (7) Information on the system that the Projects funded under this priority grantee. eligible entity will use to manage and must— Maintenance of Effort monitor information relating to the (A) Link children with mentors who— An LEA may receive a grant under mentoring program’s: (i) Have received training and support Mentoring Programs only if the State (i) Reference checks; in mentoring; educational agency finds that the (ii) Child and domestic abuse record (ii) Have been screened using combined fiscal effort per student or the checks; appropriate reference checks, child and aggregate expenditures of the agency (iii) Criminal background checks; and domestic abuse record checks, and and the State with respect to the (iv) Procedure for matching children criminal background checks; and provision of free public education by with mentors. (iii) Are interested in working with the agency for the preceding fiscal year Assurances children with greatest need; was not less than 90 percent of the (B) Be designed to achieve one or combined fiscal effort or aggregate Applicants must provide the more of the following goals with respect expenditures for the second preceding following assurances: to children with greatest need: fiscal year. (1) An assurance that no mentor will (i) Provide general guidance. be assigned to mentor so many children (ii) Promote personal and social Prohibited Uses of Funds that the assignment will undermine the responsibility. Grant funds may not be used to (1) mentor’s ability to be an effective (iii) Increase participation in, and directly compensate mentors; (2) obtain mentor or the mentor’s ability to enhance the ability to benefit from, educational or other materials or establish a close relationship (a one-to- elementary and secondary education. equipment that would otherwise be one relationship, where practicable) (iv) Discourage illegal use of drugs used in the ordinary course of the with each mentored child; and alcohol, violence, use of dangerous grantee’s operations; or (3) support (2) An assurance that the mentoring weapons, promiscuous behavior, and litigation of any kind. program will provide children with a other criminal, harmful, or potentially variety of experiences and support, harmful activity. Participation of Faith-based including— (v) Encourage participation in Organizations (i) Emotional support; community service and community Faith-based organizations are eligible (ii) Academic assistance; and activities. to apply for grants under this (iii) Exposure to experiences that the (vi) Encourage setting goals and competition provided they meet all children might not otherwise encounter planning for the future, including statutory and regulatory requirements. on their own;

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(3) An assurance that the mentoring 75.127–75.129, to qualify as a novice groups that have traditionally been program will be monitored to ensure applicant a group includes only parties underrepresented based on race, color, that each child assigned a mentor that meet the requirements listed above. national origin, gender, age, or benefits from that assignment and that Selection Criteria: The Assistant disability; (5 points) the child will be assigned a new mentor Secretary will use the following (b) The qualifications, including if the relationship between the original selection criteria to evaluate relevant training and experience, of key mentor and the child is not beneficial to applications under this competition. project personnel; (5 points) the child; The maximum score for all of these (c) The quality of the plan to recruit (4) An assurance from each CBO criteria is 100 points. The maximum mentors. (10 points) submitting an application that it is score for each criterion is indicated in (4) Quality of the project evaluation. eligible under the definitions provided. parentheses. (15 points) (1) Need for project. (10 points) In determining the quality of the Definitions In determining the need for the evaluation, the following factors are (1) The term ‘‘child with greatest proposed project, the following factors considered: need’’ means a child who is at risk of are considered: (a) The extent to which the methods educational failure, dropping out of (a) The magnitude of the need for the of evaluation are thorough, feasible, and school, or involvement in criminal or services to be provided or the activities appropriate to the goals, objectives, and delinquent activities, or who lacks to be carried out by the proposed outcomes of the proposed project; (10 strong positive role models. project. (10 points) points) (2) The term ‘‘mentor’’ means a (2) Quality of the project design. (55 (b) The extent to which the methods responsible adult, a postsecondary points) of evaluation will provide performance school student, or a secondary school In determining the quality of the feedback and permit periodic student who works with a child to—(a) design of the proposed project, the assessment of progress toward achieving Provide a positive role model for the following factors are considered: intended outcomes. (5 points) child; (b) Establish a supportive (a) The extent to which the goals, Waiver of Proposed Rulemaking: relationship with the child; and (c) objectives, and outcomes to be achieved Under the Administrative Procedure Act Provide the child with academic by the proposed project are clearly (5 U.S.C. 553), the Secretary generally assistance and exposure to new specified and measurable; (5 points) offers interested parties the opportunity experiences and examples of (b) The extent to which parents, to comment on proposed rules. Section opportunity that enhance the ability of teachers, community-based 437(d)(1) of the General Education the child to become a responsible adult. organizations, and the local community Provisions Act, however, exempts from (3) The term ‘‘non-profit’’ refers to a have participated, or will participate, in this requirement rules that apply to the school, agency, organization, or the design and implementation of the first competition under a new or institution owned and operated by one proposed mentoring program; (5 points) substantially revised program authority. or more nonprofit corporations or (c) The quality of the system that will This is the first competition under the associations, no part of the net earnings be used to manage and monitor mentor Mentoring Programs grant competition. of which inures, or may lawfully inure, reference checks, including child and These rules will apply to this FY 2002 to the benefit of any private shareholder domestic abuse record checks and grant competition only. or individual. criminal background checks; (15 points) For Applications and Other (4) The term ‘‘community-based (d) The quality of the training that Information Contact: Copies of the organization’’ means a public or private will be provided to mentors, including application for this competition are nonprofit organization of demonstrated follow-up and support of each match available from EDPubs at 1–877– effectiveness that is representative of a between mentor and child; (10 points) 4EDPubs, and on the Internet at community or significant segments of a (e) The quality of the mechanism that http://www.ed.gov/offices/OESE/SDFS. community and provides educational or will be used to match children with For all other questions, please contact related services to individuals in the mentors, based on the needs of the Bryan Williams, U.S. Department of community. children, and ensure that mentors will Education, 400 Maryland Avenue, SW, (5) The term ‘‘novice applicant’’ develop longstanding relationships with Room 3E259, Washington, DC 20202– means any applicant for a grant from the the children they mentor; (5 points) 6123. Telephone: (202) 260–2391. Email U.S. Department of Education that: (f) The extent to which the proposed address: [email protected]. (a) Has never received a grant or project will serve children with the If you use a telecommunications subgrant under the program from which greatest need in the 4th and 8th grades, device for the deaf (TDD), you may call it seeks funding; and continue to serve children from the the Federal Information Relay Service (b) Has never been a member of a 9th grade through graduation from (FIRS) at 1–888–877–8339. group application, submitted in secondary school, as needed; (5 points) Individuals with disabilities may accordance with 34 CFR 75.127–75.129, (g) The capability of the applicant to obtain this document, or an application that received a grant under the program effectively implement its mentoring package in an alternative format (e.g., from which it seeks funding; and program; (5 points) Braille, large print, audiotape, or (c) Has not had an active discretionary (h) The resources that will be computer diskette) on request to the grant from the Federal Government in dedicated to providing children with contact person listed at the beginning of the five years before the deadline date opportunities for job training or this section. However, the Department is for applications under the program. For postsecondary education. (5 points) not able to reproduce in an alternative the purposes of this requirement, a grant (3) Quality of project personnel. (20 format the standard forms included in is active until the end of the grant’s points) the application package. project or funding period, including any In determining the quality of project extensions of those periods that extend personnel, the Secretary considers: Electronic Access to This Document the grantee’s authority to obligate funds. (a) The extent to which the applicant You may view this document, as well In the case of a group application encourages applications for employment as all other Department of Education submitted in accordance with 34 CFR from persons who are members of documents published in the Federal

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Register, in text or Adobe Portable • Within three working days of institutions of higher education, other Document Format (PDF) on the Internet submitting your electronic application, public agencies, and other private at the following site: http://www.ed.gov/ fax a signed copy of the Application for agencies and organizations (including legislation/FedRegister. Federal Assistance (ED 424) to the Indian tribes and Indian organizations To use PDF, you must have the Adobe Application Control Center after and Native Hawaiian organizations). Acrobat Reader, which is available free following these steps: Under the first priority in this at this site. If you have questions about 1. Print ED 424 from the e- competition, all of these entities are using PDF, call the U.S. Government APPLICATION system. eligible to apply. Under the second Printing Office (GPO) toll free at (888) 2. Make sure that the institution’s priority, only State educational agencies 293–6498; or in the Washington, DC Authorized Representative signs this in collaboration with one or more local area at (202) 512–1530. form. educational agencies are eligible to 3. Before faxing this form, submit Note: The official version of this document apply. is the document published in the Federal your electronic application via the e- Applications Available: May 24, 2002. Register. Free Internet access to the official APPLICATION system. You will receive Deadline for Transmittal of edition of the Federal Register and the Code an automatic acknowledgement, which Applications: July 8, 2002. of Federal Regulations is available on GPO will include a PR/Award number (an Deadline for Intergovernmental Access at: http://www.access.gpo.gov/nara/ identifying number unique to your Review: June 24, 2002. index.html application). Available Funds: Priority 1— 4. Place the PR/Award number in the Pilot Project for Electronic Submission $5,100,000, Priority 2—$3,750,000. upper right corner of the ED 424. Estimated Number of Awards: Priority of Applications 5. Fax ED 424 to the Application 1—10, Priority 2—12. Control Center at (202) 260–1349. Note: Some of the procedures in these • Estimated Size of Awards: Priority 1— We may request that you give us $400,000–$600,000, Priority 2— instructions for transmitting applications original signatures on all other forms at differ from those in the Education $200,000–$300,000. Department General Administrative a later date. Estimated Average Size of Awards: You may access the electronic grant Regulations (EDGAR) (34 CFR 75.102). Under Priority 1—$500,000, Priority 2— application for Mentoring Programs at the Administrative Procedure Act (5 U.S.C. $250,000. 553) the Department generally offers http://e-grants.ed.gov. interested parties the opportunity to We have included additional (Note: These estimates are projections for comment on proposed regulations. However, information on the e-APPLICATION the guidance of potential applicants. The these amendments make procedural changes pilot project (see Parity Guidelines Department is not bound by any estimates in only and do not establish new substantive between Paper and Electronic this notice.) policy. Therefore, under 5 U.S.C. 553(b)(A), Applications) in the application Project Period: Up to 60 months for the Secretary has determined that proposed rulemaking is not required. package. the first priority and up to 36 months for If you want to apply for a grant and the second priority. In FY 2002, the U.S. Department of be considered for funding, you must Applicable Regulations: The Education is continuing to expand its meet the deadline requirements listed Education Department General pilot project of electronic submission of above. Administrative Regulations (EDGAR) in applications to include additional Program Authority: 20 U.S.C. 7140. 34 CFR parts 74, 75, 77, 79, 80, 81, 82, formula grant programs and additional 85, 97, 98, and 99. discretionary grant competitions. The Dated: May 16, 2002. SUPPLEMENTARY INFORMATION: The Mentoring Program is one of the Susan B. Neuman, Assistant Secretary for Elementary and programs included in the pilot project. Assistant Secretary for Elementary and Secondary Education invites If you are an applicant under this grant Secondary Education. applications for new grant awards for competition, you may submit your [FR Doc. 02–13161 Filed 5–23–02; 8:45 am] FY 2002 for the Jacob K. Javits Gifted application to us in either electronic or BILLING CODE 4000–01–P and Talented Students Education paper format. The pilot project involves the use of program (Javits program). The Javits the Electronic Grant Application System DEPARTMENT OF EDUCATION program has been rewritten in its entirety by P.L. 107–110, the No Child (e-APPLICATION, formerly e-GAPS) [CFDA No. 84.206A] portion of the Grant Administration and Left Behind Act, and is now located in Title V, Part D, Subpart 6 of the Payment System (GAPS). We request Office of Elementary and Secondary Elementary and Secondary Education your participation in this pilot project. Education; Jacob K. Javits Gifted and Act of 1965, as amended (ESEA), under We will continue to evaluate its success Talented Students Education Program; which these grants are authorized (20 and solicit suggestions for improvement. Notice Inviting Applications for New U.S.C. 7253 et seq.). The Jacob K. Javits If you participate in this e- Awards for Fiscal Year (FY) 2002 and Gifted and Talented Students Education APPLICATION pilot, please note the Establishing Two Absolute Priorities following: Act of 2001 supports a coordinated • Your participation is voluntary. Purpose of Program: The purpose of program of research, demonstration • You will not receive any additional the Javits program is to carry out a projects, and other activities to build point value or penalty because you coordinated program of scientifically and enhance the ability of schools submit a grant application in electronic based research, demonstration projects, nationwide to serve gifted and talented of paper format. innovative strategies, and similar students. • You can submit all documents activities designed to build and enhance The Assistant Secretary also electronically, including the the ability of elementary and secondary announces two final absolute priorities Application for Federal Assistance (ED schools nationwide to meet the special and final selection criteria to govern this 424), Budget Information—Non- educational needs of gifted and talented competition and the FY 2002 awards of Construction Programs, (ED 524), and students. these grants. In accordance with all necessary assurances and Eligible Applicants: State educational § 5465(a) and (b) of the statute, the certifications. agencies, local educational agencies, Assistant Secretary intends to give

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priority to projects designed to develop civics and government, economics, arts, the FY 2002 grant competition only. The new information that improves the history, and geography), the needs of Secretary takes this action under section capability of schools to plan, conduct, disadvantaged or other under- 437(d)(1) of the General Education and improve programs to identify and represented students, and gifted and Provisions Act. serve gifted and talented students and to talented education. In order to meet the Absolute Priorities: Under 34 CFR projects that identify and serve students absolute priority, projects must: (1) 75.105(c)(3) and the Jacob K. Javits from underrepresented groups, Build on successful interventions and Gifted and Talented Students Education including economically disadvantaged, strategies that show evidence that they Act, the Assistant Secretary gives limited English speaking, and disabled have increased student achievement, (2) absolute priority to applications that students. The Secretary also will draw on expertise in research and meet one of the following priorities and implement § 5464(c) of the statute, program evaluation, disciplinary funds only applications that meet one of requiring funding of certain projects knowledge in the core subject areas, the the absolute priorities. Each application when appropriation levels for the Javits needs of underrepresented groups, and must address one of these two priorities. program in a given year exceed the gifted and talented education, (3) Applicants cannot address both appropriation in FY 2001. expand upon the intervention as it is priorities in the same application. Accordingly, the Assistant Secretary carried out in multiple sites, and (4) Applicants eligible to apply under both will make awards under the following propose a careful research and priorities must submit separate two absolute priorities to encourage evaluation plan. applications to address each of the activities that will contribute to an The Assistant Secretary establishes priorities and the applications will be understanding of the most effective this first priority after having reviewed reviewed separately. ways to educate gifted and talented the relevant research base and the Absolute Priority 1—Javits students who are economically evaluations of previously funded Demonstration Programs: Under this disadvantaged, limited English projects, holding discussions with absolute priority, applicants must proficient, or who have disabilities. project directors, and consulting with propose projects to plan, implement, These priorities will help to target funds experts in the field. scale up, and evaluate models designed to high-needs populations within the The Assistant Secretary’s second to close the achievement gap for absolute priority implements the general program purpose of assisting students in underrepresented groups, ‘‘Special Rule’’ in § 5464(c) of the States and local school districts to better including economically disadvantaged, authorizing legislation that requires any serve gifted and talented students. limited English proficient, or disabled The Assistant Secretary’s first priority funds available in a fiscal year that students, performing at the highest implements section 5465(a) of the exceed the amount that was available in levels. statute and focuses on projects that FY 2001 to be awarded to State To meet this priority each project propose to develop, conduct, scale up, educational agencies or local and evaluate programs that identify and educational agencies, or both, to carry must include all of the following: serve gifted and talented students who out such activities as: research and (1) Evidence from one or more are economically disadvantaged or development on gifted and talented scientifically based research and limited English proficient, or who have education and how it may be used to evaluation studies indicating the disabilities and who may not be improve the education of all students, efficacy of the proposed approach in identified and served through program evaluations and information raising achievement of traditional assessment methods. collection activities, model projects and underrepresented groups to high levels According to a 2002 report by the innovative strategies, technical of achievement in one or more core National Research Council titled assistance and information subject areas. ‘‘Minority Students in Special and dissemination, distance learning (2) Evidence that the applicant has Gifted Education,’’ these groups of opportunities, and professional significant expertise in research and students remain significantly under- development. Because the FY 2001 program evaluation, knowledge in one represented at the highest levels of appropriation was $7.5 million and the or more core academic subject areas, performance. Over the past decade, FY 2002 appropriation is $11.25 experience working with small-scale model projects and million, $3.75 million is therefore underrepresented groups, and intervention strategies have produced available in FY 2002 for these purposes. knowledge about gifted and talented some evidence of effectiveness in To ensure the most effective use of education. raising student achievement to high funds for the above-stated purposes, (3) A sound plan for implementing levels. The goal of this first priority is under this second priority the Assistant the model in multiple settings. to expand upon, field test, and evaluate Secretary will only fund projects (4) A research and evaluation plan research-based interventions that have submitted by State educational agencies that will yield both formative and existing evidence of success in that propose to collaborate with one or summative information on the increasing the proportion of more local educational agencies to carry effectiveness of the model, including economically disadvantaged, limited out a coordinated set of activities to student achievement data. English proficient, or disabled students build statewide capacity to serve gifted Absolute Priority 2—Javits State performing at high levels of and talented students. Capacity-Building Grants: Under this achievement. Based on the experience Waiver of Proposed Rulemaking: absolute priority, State educational of previous grant recipients, the Under the Administrative Procedure Act agencies (SEAs), in collaboration with Assistant Secretary believes that these (5 U.S.C. 553), the Secretary generally one or more local educational agencies projects will be most successful if they offers interested parties the opportunity (LEAs), must propose projects to are carried out by applicants that can to comment on proposed regulations. improve services to gifted and talented demonstrate an expertise in: education However, to make timely awards in FY students and develop the capacity of the research and program evaluation, one or 2002, the Secretary has decided to issue States and LEAs to serve these students more of the core academic subject areas these final priorities without first more effectively. Under this priority, (English, reading or language arts, publishing them as proposals for public applications must propose to carry out mathematics, science, foreign languages, comment. These priorities will apply to one or more of the following activities:

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(1) Conducting scientifically based Secretary directs applicants’ attention to appropriate to the needs of the intended research on methods and techniques for the following definition: recipients or beneficiaries of those identifying and teaching gifted and Core Academic Subjects. The term services. talented students and for using gifted ‘‘core academic subjects’’ means (ii) The likelihood that the services to and talented programs and methods for English, reading or language arts, be provided will lead to improvements serving all students, and conducting mathematics, science, foreign languages, in the achievement of students as program evaluations, surveys, and the civics and government, economics, arts, measured against rigorous academic collection, analysis, and development of history, and geography. (20 U.S.C. standards. information needed to accomplish the 7801(11)). (iii) The extent to which the services proposed project. Selection Criteria: The Assistant to be provided by the proposed project (2) Conducting professional Secretary uses the following selection involve the collaboration of appropriate development (including fellowships) for criteria to evaluate applications for new partners for maximizing the personnel (including leadership grants under this competition. Each of effectiveness of project services. personnel) involved in the education of the two absolute priorities in this (4) Quality of project personnel. (10 gifted and talented students. competition has separate selection points) In determining the quality of project (3) Establishing and operating model criteria tailored to the specific personnel, the extent to which the projects and exemplary programs for requirements of the priority. These applicant encourages applications for serving gifted and talented students, selection criteria are drawn from employment from persons who are including innovative methods for EDGAR § 75.210. In both sets of members of groups that have identifying and educating students who selection criteria, the maximum score for all of these criteria is 100 points. The traditionally been underrepresented may not be served by traditional gifted based on race, color, national origin, and talented programs (such as summer maximum score for each criterion is indicated in parentheses. gender, age, or disability is considered. programs, mentoring programs, service In addition, the following factors are learning programs, and cooperative Selection Criteria for Priority 1 (Javits considered: programs involving business, industry, Demonstration Programs) (i) The qualifications, including and education). (1) Significance. (15 points) relevant training and experience, of the (4) Implementing innovative project director or principal strategies, such as cooperative learning, In determining the significance of the proposed project, the following factors investigator. peer tutoring, and service learning. (ii) The qualifications, including (5) Providing programs of technical are considered: (i) The potential contribution of the relevant training and experience, of key assistance and information proposed project to the development project personnel. dissemination, including assistance and (5) Adequacy of resources. (10 points) and advancement of theory, knowledge, information with respect to how gifted In determining the adequacy of and practices in the field of study. and talented programs and methods, resources for the proposed project, the (ii) The potential for generalizing from where appropriate, may be adapted for following factors are considered: the findings or results of the proposed use by all students. (i) The adequacy of support, including project. facilities, equipment, supplies and other (6) Making materials and services (2) Quality of the project design. (20 available through State regional resources, from the applicant points) organization or the lead applicant educational service centers, institutions In determining the quality of the of higher education, or other entities. organization. project design of the proposed project, (ii) The extent to which the costs are (7) Providing challenging, high-level the following factors are considered: course work, disseminated through reasonable in relation to the objectives, (i) The extent to which the proposed design, and potential significance of the technologies (including distance activities constitute a coherent, learning), for individual students or proposed project. sustained program of research and (6) Quality of project evaluation (25 groups of students in schools and local development in the field, including, as educational agencies that would not points) appropriate, a substantial addition to an In determining the quality of the otherwise have the resources to provide ongoing line of inquiry. project evaluation, the following factors such course work. (ii) The extent to which the proposed are considered: Other Requirements project represents an exceptional (i) The extent to which the methods approach to the priority established for of evaluation are thorough, feasible, and The Assistant Secretary directs the the competition. appropriate to the goals, objectives, and applicants’ attention to the requirements (iii) The quality of the methodology to outcomes of the proposed project. in section 5464(a)(2) of the statute, be employed in the proposed project. (ii) The extent to which the evaluation stating that each applicant requesting (3) Quality of project services. (20 will provide guidance about effective support under the Javits program must points) strategies suitable for replication or describe how: In determining the quality of the testing in other settings. (1) The proposed gifted and talented services to be provided by the proposed services, materials, and methods can be project, the quality and sufficiency of Section Criteria for Priority 2 (Javits adapted, if appropriate, for use by all strategies for ensuring equal access and State Capacity—Building Grants) students, and treatment for eligible project (1) Need for the project. (15 points) (2) The proposed programs can be participants who are members of groups In determining the need for the evaluated. that have traditionally been project, the extent to which specific Definitions: The definitions contained underrepresented based on race, color, gaps or weaknesses in services, in the Jacob K. Javits Gifted and national origin, gender, age, or disability infrastructure, or opportunities have Talented Students Education Act of is considered. In addition, the following been identified and will be addressed by 2001, at Title IX, Part A of the ESEA, factors are considered: the proposed project, including the apply to the Javits program and this (i) The extent to which the services to nature and magnitude of those gaps or competition. In particular, the Assistant be provided by the proposed project are weaknesses, is considered.

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(2) Quality of the project design. (20 budget, including clearly defined Dated: May 21, 2002. points) responsibilities, timelines, and Susan B. Neuman, In determining the quality of the milestones for accomplishing project Assistant Secretary for Elementary and design of the proposed project, the tasks. Secondary Education. following factors are considered: (ii) The adequacy of the procedures [FR Doc. 02–13160 Filed 5–23–02; 8:45 am] (i) The extent to which the goals, for ensuring feedback and continuous BILLING CODE 4000–01–P objectives, and outcomes to be achieved improvement in the operation of the by the proposed project are clearly proposed project. specified and measurable. DEPARTMENT OF EDUCATION (ii) The extent to which the design of (7) Quality of the project evaluation. the proposed project is appropriate to, (20 points) In determining the quality of National Advisory Committee on and will successfully address, the needs the evaluation, the following factors are Institutional Quality and Integrity, of the target population or other considered: (National Advisory Committee); Notice identified needs. (i) The extent to which the methods of Meeting Changes (iii) The extent to which the proposed of evaluation are thorough, feasible, and AGENCY: project represents an exceptional National Advisory Committee appropriate to the goals, objectives, and on Institutional Quality and Integrity, approach to the priority established for outcomes of the proposed project. the competition. Department of Education. (3) Quality of project services. (15 (ii) The extent to which the evaluation SUMMARY: This notice advises interested points) In determining the quality of the will provide guidance about effective parties of changes concerning the services to be provided by the proposed strategies suitable for replication or upcoming meeting of the National project, the quality and sufficiency of testing in other settings. Advisory Committee and amends strategies for ensuring equal access and FOR APPLICATIONS AND FURTHER information provided in the original treatment for eligible project INFORMATION CONTACT: Emily McAdams, meeting notice published in the March participants who are members of groups U.S. Department of Education, Room 21, 2002 Federal Register (67 FR that have traditionally been 5W252, 400 Maryland Ave., SW., 13131). underrepresented based on race, color, Washington, DC 20202. Telephone: FOR FURTHER INFORMATION CONTACT: Ms. national origin, gender, age, or disability (202) 260–8753 or the following email Bonnie LeBold, the Executive Director is considered. In addition, the following or Internet address: of the National Advisory Committee on factors are considered: [email protected] Institutional Quality and Integrity, U.S. (i) The extent to which the services to If you use a telecommunications Department of Education, room 7007, be provided by the proposed project devise for the deaf (TDD), you may call MS 7592, 1990 K St., NW., Washington, reflect up-to-date knowledge from the Federal Information Relay Service DC 20006, telephone: (202) 219–7009, research and effective practice. (FIRS) at 1–800–877–8339. fax: (202) 219–7008, e-mail: (ii) The likely impact of the services [email protected]. to be provided by the proposed project Individuals with disabilities may Individuals who use a on the intended recipients of those obtain this document, or an application telecommunications device for the deaf services. package in an alternative format (e.g., (TDD) may call the Federal Information (4) Quality of project personnel. (10 Braille, large print, audiotape, or Relay Service at 1–800–877–8339 points) computer diskette) on request to the between 8 a.m. and 8 p.m. Eastern time, In determining the quality of the contact person listed. However, the Monday through Friday. project personnel, the extent to which Department is not able to reproduce in SUPPLEMENTARY INFORMATION: The an alternative format the standard forms the applicant encourages applications changes to the agenda are as follows: for employment from persons who are included in the application package. (1) The National Advisory Committee members of groups that have Electronic Access to this Document: meeting originally scheduled from 8:30 traditionally been underrepresented You may view this document, as well as a.m. until 3 p.m. on Wednesday, June 5, based on race, color, national origin, all other Department of Education 2002, as indicated in the March 21, 2002 gender, age, or disability, is considered. documents published in the Federal Federal Register (67 FR 13131), will In addition, the following factors are Register, in text or Adobe Portable conclude at approximately 12:30 p.m. considered: Document Format (PDF) on the Internet (2) The agency listed below, which (i) The qualifications, including at the following site: www.ed.gov/ was originally scheduled for review relevant training and experience, of the legislation/FedRegister during the National Advisory project director or principal To use PDF you must have the Adobe Committee’s June 2002 meeting, will be investigator. postponed for review until a future (ii) The qualifications, including Acrobat Reader, which is available free at this site. If you have questions about meeting. relevant training and experience, of the • key project personnel. using PDF, call the U.S. Government Teacher Education Accreditation (5) Adequacy of resources. (10 points) Printing Office (GPO) toll free, at 1–888– Council (Requested scope of The adequacy of resources for the 293–6498; or in the Washington, DC, recognition: the accreditation of proposed project is considered. area at (202) 512–1530. professional education programs in institutions offering baccalaureate and (6) Quality of the management plan. Note: The official version of this document graduate degrees for the preparation of (10 points) is the document published in the Federal teachers K–12) In determining the quality of the Register. Free Internet access to the official management plan for the proposed edition of the Federal Register and the Code Any third-party written comments project, the following factors are of Federal Regulations is available on GPO regarding this agency that were received considered: Access at: http://www.access.gpo.gov/nara/ by March 18, 2002, in accordance with (i) The adequacy of the management index.html the Federal Register notice published plan to achieve the objectives of the on February 1, 2002, will become part proposed project on time and within Program Authority: 20 U.S.C. 7253 et seq. of the official record, and those

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comments will be considered by the concerning issues affecting the Purpose of the Board: The purpose of National Advisory Committee when it Environmental Management program at the Board is to make recommendations reviews the agency’s petition for initial various sites. These site-specific issues to DOE and its regulators in the areas of recognition at a future meeting. In include clean-up standards and environmental restoration, waste addition, prior to the meeting, another environmental restoration; waste management, and related activities. opportunity to provide written management and disposition; Tentative Agenda: comments on the agency will be stabilization and disposition of non- 1. Presentation to be Determined. announced in a Federal Register notice. stockpile nuclear materials; excess Public Participation: The meeting is facilities; future land use; long-term open to the public. Written statements How May I Obtain Electronic Access to stewardship; risk assessment and may be filed with the Committee either This Document? management; and science and before or after the meeting. Individuals You may view this document, as well technology activities. who wish to make oral statements as all other Department of Education The renewal of the Environmental pertaining to agenda items should documents published in the Federal Management Site-Specific Advisory contact Pat Halsey at the address or Register, in text or Adobe Portable Board has been determined to be telephone number listed above. Document Format (PDF) on the Internet essential to the conduct of Department Requests must be received five days at the following site: http://www.ed.gov/ of Energy business and to be in the prior to the meeting and reasonable legislation/FedRegister. public interest in connection with the provision will be made to include the To use PDF you must have Adobe performance of duties imposed on the presentation in the agenda. The Deputy Acrobat Reader, which is available free Department of Energy by law and Designated Federal Officer is at this site. If you have questions about agreement. The Board will operate in empowered to conduct the meeting in a using PDF, call the U.S. Government accordance with the provisions of the fashion that will facilitate the orderly Printing Office (GPO), toll free, at Federal Advisory Committee Act, and conduct of business. Each individual 1–888–293–6498; or in the Washington, rules and regulations issued in wishing to make public comment will DC area at (202) 512–1530. implementation of this Act. be provided a maximum of five minutes Note: The official version of this document Further information regarding this to present their comments at the end of is the document published in the Federal Advisory Board may be obtained from the meeting. Register. Free Internet access to the official Ms. Martha S. Crosland at (202) 586– Minutes: Minutes of this meeting will edition of the Federal Register and the Code 5944. be available for public review and of Federal Regulations is available on GPO Issued in Washington, DC, on May 20, copying at the Department of Energy’s Access at: http://www.access.gpo.gov/nara/ Information Resource Center at 105 index.html. 2002. James N. Solit, Broadway, Oak Ridge, TN between 7:30 a.m. and 5:30 p.m. Monday through Authority: 5 U.S.C. Appendix 2. Advisory Committee Management Officer. Friday, or by writing to Pat Halsey, Dated: May 16, 2002. [FR Doc. 02–13104 Filed 5–23–02; 8:45 am] Department of Energy Oak Ridge Sally L. Stroup, BILLING CODE 6450–01–P Operations Office, P.O. Box 2001, EM– Assistant Secretary for Postsecondary 922, Oak Ridge, TN 37831, or by calling Education. her at (865) 576–4025. [FR Doc. 02–13068 Filed 5–23–02; 8:45 am] DEPARTMENT OF ENERGY Issued at Washington, DC, on May 20, BILLING CODE 4000–01–P Environmental Management Site- 2002. Specific Advisory Board, Oak Ridge Belinda G. Hood, Reservation Acting Deputy Advisory Committee DEPARTMENT OF ENERGY Management Officer. AGENCY: Department of Energy. Office of Envrionmental Management; [FR Doc. 02–13103 Filed 5–23–02; 8:45 am] ACTION: Notice of Open Meeting. Site-Specific Advisory Board Renewal BILLING CODE 6450–01–P Pursuant to section 14(a)(2)(A) of the SUMMARY: This notice announces a Federal Advisory Committee Act (Public meeting of the Environmental DEPARTMENT OF ENERGY Law No. 92–463), in accordance with Management Site-Specific Advisory Title 41 of the Code of Federal Board (EM SSAB), Oak Ridge. The Federal Energy Regulatory Regulations, section 102–3.65(a), and Federal Advisory Committee Act (Pub. Commission L. No. 92–463, 86 Stat. 770) requires following consultation with the [Docket No. TX02–2–000; ER02–1654–000] Committee Management Secretariat, that public notice of these meeting be General Services Administration, notice announced in the Federal Register. Kiowa Power Partners, LLC, Oncor is hereby given that the Environmental DATES: Wednesday, June 12, 2002, 6 Electric Delivery Company; Notice of Management Site-Specific Advisory p.m.–9:30 p.m. Filing Board has been renewed for a two-year ADDRESSES: DOE Information Center, period beginning May 16, 2002. The 475 Oak Ridge Turnpike, Oak Ridge, May 14, 2002. Environmental Management Site- TN. Take notice that on May 6, 2002, Specific Advisory Board will provide Reliant Energy HL&P (Reliant) filed a advice and recommendations to the FOR FURTHER INFORMATION CONTACT: Pat pleading entitled ‘‘Motion to Intervene Assistant Secretary for Environmental Halsey, Federal Coordinator, and Comments,’’ stating that it does not Management, appropriate Site Department of Energy Oak Ridge oppose the Application filed in these Manager(s), and other U. S. Department Operations Office, P.O. Box 2001, EM– dockets by Kiowa Power Partners, LLC of Energy officials the Assistant 922, Oak Ridge, TN 37831. Phone (865) and Oncor Electric Delivery Company Secretary shall designate. 576–4025; Fax (865) 576–5333 or e-mail: (Oncor). Reliant explains that its’ The Board provides information, [email protected]. position is based on the understanding advice and recommendations SUPPLEMENTARY INFORMATION: that certain changes will be made to

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incorporate Reliant into the proposed 1. Trans-Elect, Inc., Michigan Transco Cogeneration will sell the capacity Order under Sections 210, 211, and 212 Holdings, Limited Partnership, exclusively at wholesale. requiring interconnections and Consumers Energy Company, and A copy of the filing was served upon transmission service. Reliant states that Michigan Electric Transmission the Securities and Exchange the Order requested by Kiowa would Company Commission, the Public Utilities Commission of the State of Colorado. effectively require Reliant, as well as [Docket Nos. EC02–23–000 and ER02–320– Oncor, to provide transmission service. 004] Comment Date: June 7, 2002. Any person desiring to intervene or to Take notice that on May 13, 2002, 4. Wisconsin Power and Light Company protest this filing should file with the Consumers Energy Company [Docket Nos. EL02–47–002 and EL02–52– Federal Energy Regulatory Commission, (Consumers) submitted the compliance 002] 888 First Street, NE., Washington, DC filing required by the Federal Energy Take notice that on May 14, 2002, 20426, in accordance with Rules 211 Regulatory Commission’s (Commission) Wisconsin Power and Light Company and 214 of the Commission’s rules of order of February 13, 2002 in the above- tendered for filing with the Federal practice and procedure (18 CFR 385.211 referenced proceedings. The filing Energy Regulatory Commission and 385.214). Protests will be includes First Revised Consumers Rate (Commission), a Refund Report in considered by the Commission in Schedule Nos. 116 and 117. response to the Commission’s Order The filing was served on all parties on determining the appropriate action to be dated March 15, 2002 in the above the Commission’s official service list in taken, but will not serve to make named dockets. these proceedings. A copy of this filing has been served protestants parties to the proceeding. Comment Date: June 3, 2002. Any person wishing to become a party upon all affected customers and the must file a motion to intervene. All such 2. Trans-Elect, Inc., Michigan Transco Public Service Commission of motions or protests should be filed on Holdings, Limited Partnership, Wisconsin. or before the comment date, and, to the Consumers Energy Company, and Comment Date: June 4, 2002. Michigan Electric Transmission extent applicable, must be served on the 5. Entergy Services, Inc. applicant and on any other person Company [Docket No. ER00–1743–004] designated on the official service list. [Docket Nos. EC02–23–000 and ER02–320– Take notice that on May 14, 2002, This filing is available for review at the 005] Entergy Services, Inc., submits for filing Commission or may be viewed on the Take notice that on May 13, 2002, with the Federal Energy Regulatory Commission’s Web site at http:// Michigan Electric Transmission Commission (Commission) on behalf of www.ferc.gov using the ‘‘RIMS’’ link, Company, LLC (Michigan Transco LLC) submitted the compliance filing the five Entergy Operating Companies: select ‘‘Docket #’’ and follow the Entergy Arkansas, Inc., Entergy Gulf instructions (call 202–208–2222 for required by the Federal Energy Regulatory Commission’s (Commission) States, Inc., Entergy Louisiana, Inc., assistance). Protests and interventions Entergy Mississippi, Inc., and Entergy may be filed electronically via the order of February 13, 2002 in the above- referenced proceedings. New Orleans, Inc. (together Entergy), Internet in lieu of paper; see 18 CFR this compliance filing is in response to 385.2001(a)(1)(iii) and the instructions Copies of the transmittal letter included as part of this filing were the Commission’s April 29, 2002 Order on the Commission’s Web site under the served on all parties on the in the above-captioned docket. A copy ‘‘e-Filing’’ link. Commission’s official service list in of this filing has been served upon the Comment Date: May 23, 2002. these proceedings and on all affected state regulators of the Entergy operating companies. Magalie R. Salas, state commissions. Comment Date: June 3, 2002. Comment Date: June 4, 2002. Secretary. 6. Central Maine Power Company [FR Doc. 02–13093 Filed 5–23–02; 8:45 am] 3. Thermo Cogeneration Partnership, L.P [Docket No. ER02–1223–001] BILLING CODE 6717–01–P [Docket No. EG02–135–000] Please take notice that on May 14, Take notice that on May 9, 2002, 2002 , Central Maine Power Company DEPARTMENT OF ENERGY Thermo Cogeneration (Thermo (CMP) tendered for filing an executed Cogeneration), a Delaware limited Local Network Operating Agreements Federal Energy Regulatory liability partnership, with its principal (LNOA) and executed service Commission place of business at 6811 Weld County agreements for Local Network Road, Ft. Lupton, Colorado 80621, filed Transmission Service (LNSA) entered [Docket No. EC02–23–000, et al.] with the Federal Energy Regulatory into with United American Hydro, L.P. Commission (Commission) an (UAH–Hydro Kennebec Limited Trans-Elect, Inc. et al.; Electric Rate application for determination of exempt Partnership). These agreements and Corporate Regulation Filings wholesale generator (EWG) status supersede agreements previously filed pursuant to Part 365 of the on March 4, 2002. Service will be May 17, 2002. Commission’s regulations provided pursuant to CMP’s Open The following filings have been made Thermo Cogeneration states that it Access Transmission Tariff, designated with the Commission. The filings are will be engaged directly and exclusively rate schedule CMP–FERC Electric Tariff, listed in ascending order within each in the business of owning or operating, Fifth Revised Volume No. 3, under the docket classification. or both owning and operating, a 272 following Service Agreement Numbers: MW gas-fired combined cycle power United American Hydro LNSA–First generation facility located in Ft. Lupton, Revised Service Agreement No. 147 Colorado (Facility). Under power United American Hydro LNOA–First purchase agreements with Public Revised Service Agreement No. 148 Service Co. of Colorado, Thermo Comment Date: June 4, 2002.

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7. Tri-State Power, LLC No. ER99–2157–000, et al., 87 FERC ¶ on the Commission’s Web site under the [Docket No. ER02–1263–001] 61, 163 (1999). ‘‘e-Filing’’ link. Take notice that on May 10, 2002, Tri- Comment Date: June 3, 2002. Magalie R. Salas, State Power, LLC (TSP) tendered for 11. Dunkirk Power LLC Secretary. filing with the Federal Energy [FR Doc. 02–13052 Filed 5–23–02; 8:45 am] [Docket No. ER99–2168–003] Regulatory Commission (Commission) BILLING CODE 6717–01–P corrected copies of the long-term Take notice that on May 13, 2002, contract under which (TSP) will sell Dunkirk Power LLC tendered for filing electricity under Rate Schedule FERC its triennial review in compliance with DEPARTMENT OF ENERGY No. 1 to Tri-State Generation & the Federal Energy Regulatory Transmission Association, Inc. (TSGTA) Commission’s (Commission) Order in Federal Energy Regulatory in compliance with the April 25, 2002 Rocky Road Power LLC, et al. Docket Commission letter from Michael A. Coleman, No. ER99–2157–000, et al., 87 FERC ¶ Notice of Transfer of License and Director, Division of Tariffs and Rates— 61, 163 (1999). Solicitation of Comments, Motions To West. TSP also filed a corrected short- Comment Date: June 3, 2002. Intervene, and Protests term agreement under which it will sell start-up test energy to TSGTA.. 12. Astoria Gas Turbine Power LLC May 20, 2002. Comment Date: June 4, 2002. [Docket No. ER99–3000–001] Take notice that the following 8. Commonwealth Edison Company hydroelectric application has been filed Take notice that on May 13, 2002, with the Commission and is available [Docket No. ER02–1775–000] Astoria Gas Turbine Power LLC for public inspection: Take notice that on May 9, 2002, tendered for filing its triennial review in a. Application Type: Transfer of Commonwealth Edison Company compliance with the Commission’s License. (ComEd) submitted for filing a service order in Rocky Road Power LLC, et al. b. Project No.: 3342–013. agreement for non-firm point-to-point Docket No. ER99–2157–000, et al., 87 c. Date Filed: May 8, 2002. transmission service, a service FERC ¶ 61, 163 (1999). d. Applicants: New Hampshire Hydro agreement for short-term firm point-to- Comment Date: June 3, 2002. Associates (Transferor) and Briar Hydro point transmission service, and a Associates (Transferee). 13. Go Green, Inc. Network Operating Agreement between e. Name of Project: Penacook Lower ComEd and Sempra Energy Solutions [Docket No. QF02–65–000] Falls Project. f. Location: On the Contoocook River, (Sempra) as well as a service agreement Take notice that on April 26, 2002, Go for firm point-to-point transmission in Merrimack County, New Hampshire. Green, Inc. tendered for filing with the The project would not utilize federal or service between ComEd and Edison Federal Energy Regulatory Commission Mission Marketing & Trading, Inc. tribal lands. (Commission), an Application for g. Filed Pursuant to: Federal Power (Edison Mission) (collectively the Certification of a Qualifying Facility. Agreements) under ComEd’s FERC Act, 16 U.S.C. 791(a)-825(r). Electric Tariff, Second Revised Volume Comment Date: May 28, 2002. h. Applicants Contacts: Elizabeth W. No. 5. Standard Paragraph: Whittle, Esq., Nixon Peabody LLP, 401 ComEd seeks an effective date of 9th Street, NW., Suite 900, Washington, E. Any person desiring to intervene or DC 20004; Richard A. Norman, New April 9, 2002 for the Agreements and, to protest this filing should file with the accordingly, seeks waiver of the Hampshire Hydro Associates, c/o Essex Federal Energy Regulatory Commission, Hydro Associates, L.L.C., 55 Union Commission’s notice requirements. 888 First Street, NE., Washington, DC ComEd states that a copy of this filing Street, Fourth Floor, Boston, MA 02108 20426, in accordance with Rules 211 i. FERC Contact: Regina Saizan, (202) has been served on Sempra, Edison and 214 of the Commission’s Rules of 219–2673. Mission and the Illinois Commerce Practice and Procedure (18 CFR 385.211 j. Deadline for filing comments or Commission. and 385.214). Protests will be motions: June 11, 2002. Comment Date: May 29, 2002. considered by the Commission in All documents (original and eight 9. Arthur Kill Power LLC determining the appropriate action to be copies) should be filed with: Magalie R. taken, but will not serve to make Salas, Secretary, Federal Energy [Docket No. ER99–2161–003] protestants parties to the proceeding. Regulatory Commission, 888 First Take notice that on May 13, 2002, Any person wishing to become a party Street, NE., Washington, DC 20426. Arthur Kill Power LLC tendered for must file a motion to intervene. All such Comments, protests, and interventions filing its triennial review in compliance motions or protests should be filed on may be filed electronically via the with the Commission’s order in Rocky or before the comment date, and, to the Internet in lieu of paper. See, 18 CFR Road Power LLC, et al. Docket No. extent applicable, must be served on the 385.2008(a)(1)(iii) and the instructions ER99–2157–000, et al., 87 FERC ¶ 61, applicant and on any other person on the Commission’s Web site under the 163 (1999). designated on the official service list. ‘‘e-Filing’’ link. Comment Date: June 3, 2002. This filing is available for review at the Please include the project number (P– 10. Huntley Power LLC Commission or may be viewed on the 3342–013) on any comments, protests, Commission’s Web site at http:// or motions filed. [Docket No. ER99–2162–003] www.ferc.gov using the ‘‘RIMS’’ link, The Commission’s Rules of Practice Take notice that on May 13, 2002, select ‘‘Docket #’’ and follow the and Procedure require all interveners Huntley Power LLC tendered for filing instructions (call 202–208–2222 for filing a document with the Commission its triennial review in compliance with assistance). Protests and interventions to serve a copy of that document on the Federal Energy Regulatory may be filed electronically via the each person in the official service list Commission’s (Commission) Order in Internet in lieu of paper; see 18 CFR for the project. Further, if an intervener Rocky Road Power LLC, et al. Docket 385.2001(a)(1)(iii) and the instructions files comments or documents with the

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Commission relating to the merits of an Applicant. If an agency does not file May 30, 2002, at the offices of the issue that may affect the responsibilities comments within the time specified for Federal Energy Regulatory Commission, of a particular resource agency, they filing comments, it will be presumed to 888 First Street, NE., Washington, DC must also serve a copy of the documents have no comments. One copy of an 20426, for the purpose of exploring the on that resource agency. agency’s comments must also be sent to possible settlement of the above- k. Description of Transfer: The the Applicant’s representatives. referenced docket. transferee owns two other operating Any party, as defined by 18 CFR projects located immediately upstream Magalie R. Salas, 385.102(c), or any participant as defined of the Penacook Lower Falls Project. Secretary. by 18 CFR 385.102(b), is invited to The transfer is being undertaken to [FR Doc. 02–13090 Filed 5–23–02; 8:45 am] attend. Persons wishing to become a restructure the current ownership and to BILLING CODE 6717–01–P party must move to intervene and consolidate and simplify the ownership receive intervenor status pursuant to the and operation of the three projects. Commission’s regulations (18 CFR l. Copies of this filing are on file with DEPARTMENT OF ENERGY 385.214. the Commission and are available for For additional information, please Federal Energy Regulatory public inspection. This filing may be contact Arnold H. Meltz at (202) 208– Commission viewed on the Commission’s Web site at 2161 or Carmen Gastilo at (202) 208– http://www.ferc.gov using the ‘‘RIMS’’ [Docket No. RP02–132–000] 2182. link, select ‘‘Docket #’’ and follow the instructions ((202) 208–2222 for Viking Gas Transmission Company; Magalie R. Salas, assistance). A copy is also available for Notice of Informal Settlement Secretary. inspection and reproduction at the Conference [FR Doc. 02–13092 Filed 5–23–02; 8:45 am] address in h above. BILLING CODE 6717–01–P m. Individuals desiring to be included May 20, 2002. on the Commission’s mailing list should Take notice that an informal so indicate by writing to the Secretary settlement conference will be convened ENVIRONMENTAL PROTECTION of the Commission. in this proceeding commencing at 10 AGENCY n. Comments, Protests, or Motions to a.m. on Wednesday, June 5, 2002, and Intervene—Anyone may submit continuing at 10 a.m. on Thursday, June [Petition IV–2001–1; FRL–7217–5] 6, 2002, at the offices of the Federal comments, a protest, or a motion to Clean Air Act Operating Permit intervene in accordance with the Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, Program; Petition for Objection to requirements of Rules of Practice and State Operating Permit for Caldwell Procedure, 18 CFR 385.210, .211, .214. for the purpose of exploring the possible settlement of the above-referenced Tanks Alliance, LLC; Newnan (Coweta In determining the appropriate action to County), Georgia take, the Commission will consider all docket. protests or other comments filed, but Any party, as defined by 18 CFR AGENCY: Environmental Protection only those who file a motion to 385.102(c), or any participant as defined Agency (EPA). intervene in accordance with the by 18 CFR 385.102(b), is invited to ACTION: Notice of final order on petition Commission’s Rules may become a attend. Persons wishing to become a to object to a state operating permit. party to the proceeding. Any comments, party must move to intervene and protests, or motions to intervene must receive intervenor status pursuant to the SUMMARY: Pursuant to Clean Air Act be received on or before the specified Commission’s regulations (18 CFR section 505(b)(2) and 40 CFR 70.8(d), comment date for the particular 385.214). the EPA Administrator signed an order, application. For additional information, please dated April 1, 2002, denying a petition o. Filing and Service of Responsive contact Arnold H. Meltz at (202) 208– to object to a State operating permit Documents—Any filings must bear in 2161 or Carmen Gastilo at (202) 208– issued by the Georgia Environmental all capital letters the title 2182. Protection Division (Georgia EPD) to ‘‘COMMENTS’’, Magalie R. Salas, Caldwell Tanks Alliance, LLC, for its facility, located in Newnan, Coweta ‘‘RECOMMENDATIONS FOR TERMS Secretary. County, Georgia. This order constitutes AND CONDITIONS’’, ‘‘PROTEST’’, OR [FR Doc. 02–13091 Filed 5–23–02; 8:45 am] ‘‘MOTION TO INTERVENE’’, as final action on the petition submitted by BILLING CODE 6717–01–P applicable, and the Project Number of Georgia Center for Law in the Public the particular application to which the Interest on behalf of the Sierra Club. filing refers. Any of the above-named DEPARTMENT OF ENERGY Pursuant to section 505(b)(2) of the documents must be filed by providing Clean Air Act any person may seek the original and the number of copies Federal Energy Regulatory judicial review in the United States provided by the Commission’s Commission Court of Appeals for the appropriate regulations to: The Secretary, Federal circuit within 60 days of this document [Docket No. RP02–132–000] Energy Regulatory Commission, 888 under section 307 of the Act. First Street, NE., Washington, DC 20426. Viking Gas Transmission Company; ADDRESSES: Copies of the final order, the A copy of any motion to intervene must Notice of Informal Settlement petition, and all pertinent information also be served upon each representative Conference relating thereto are on file at the of the Applicant specified in the following location: Environmental particular application. May 20, 2002. Protection Agency, Region 4, Air, p. Agency Comments—Federal, state, Take notice that an informal Pesticides and Toxics Management and local agencies are invited to file settlement conference will be convened Division, 61 Forsyth Street, SW., comments on the described application. in this proceeding commencing at 10:00 Atlanta, Georgia 30303–8960. The final A copy of the application may be a.m. on Wednesday, May 29, 2002, and order is also available electronically at obtained by agencies directly from the continuing at 10:00 a.m. on Thursday, the following address: http://

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www.epa.gov/region07/programs/artd/ GCLPI’s petition was not filed within violations of the permit; (3) go through air/title5/petitiondb/petitions/ the statutory time period for filing a proper public notice procedures because caldwelltanks_decision2001.pdf. section 505(b)(2) petition for objection it stated only that the permit is to a Title V permit. Petitioner claims enforceable by EPA and the Georgia EPD FOR FURTHER INFORMATION CONTACT: Art that it relied upon erroneous without also stating that the permit is Hofmeister, Air, Pesticides and Toxics information provided by the Georgia enforceable by members of the public; Management Division, EPA, Region 4, EPD which indicated that the permit and (4) include an emission limit or telephone (404) 562–9115, e-mail had been re-proposed to EPA. require monitoring to assure that no [email protected]. Interested Reproposal of the permit would have re- visible emissions result from a shot parties may also contact the Air started EPA’s review period and, in blasting and baghouse operation that the Protection Branch, Georgia turn, extended the time allowed for permit classifies as an insignificant Environmental Protection Division, filing petitions for objection to the activity. 4244 International Parkway, Atlanta, permit. Because the petition was The order denying this petition Georgia 30354. untimely, EPA informed Petitioner that explains the reasons behind EPA’s SUPPLEMENTARY INFORMATION: The Clean EPA intended to treat it as a petition to conclusion that the Petitioner failed to Air Act (CAA or the Act) affords EPA a reopen the permit for cause in demonstrate that the Caldwell Tanks 45-day period to review, as appropriate, accordance with 40 CFR 70.7(f) and permit is not in compliance with the operating permits proposed by State 70.7(g) and to respond on the merits. requirements of the Clean Air Act on the permitting authorities under Title V of Accordingly, EPA sent a letter, dated grounds raised. the CAA, 42 U.S.C. 7661–7661f (Title January 28, 2002, from Winston A. Dated: May 13, 2002. V). Section 505(b)(2) of the Act and 40 Smith, Director of Region 4’s Air, CFR 70.8(d) authorize any person to Pesticides & Toxics Management J. I. Palmer, Jr., petition the EPA Administrator to object Division, to Petitioner’s counsel, stating Regional Administrator, Region 4. to a Title V operating permit within 60 that the petition was not timely filed [FR Doc. 02–13119 Filed 5–23–02; 8:45 am] days after the expiration of EPA’s 45- under section 505(b)(2) and 40 CFR BILLING CODE 6560–50–P day review period if EPA has not 70.8(d) and that EPA was treating it as objected on its own initiative. Petitions a petition to reopen the permit for cause must be based only on objections to the in accordance with 40 CFR 70.7(f) and ENVIRONMENTAL PROTECTION permit that were raised with reasonable 70.7(g). EPA also denied the petition to AGENCY specificity during the public comment reopen on the merits. period provided by the State, unless the Because EPA had not responded to [ER–FRL–6629–6] petitioner demonstrates that it was the petition within the statutory 60-day impracticable to raise these issues period for responding to section Environmental Impact Statements and during the comment period or the 505(b)(2) petitions for objection, the Regulations; Availability of EPA grounds for the issues arose after this Petitioner filed a nondiscretionary duty Comments period. suit pursuant to section 304(a)(2) of the CAA in the United States District Court Availability of EPA comments Section 505(b)(2) provides that the for the District of Columbia to compel prepared pursuant to the Environmental Administrator shall grant or deny such EPA to grant or deny its petition. Two Review Process (ERP), under section a petition within 60 days after it is filed, days after EPA responded to the 309 of the Clean Air Act and section and that the Administrator shall object Petitioner’s petition, the court held that 102(2)(c) of the National Environmental to the permit within that period if the the doctrine of equitable tolling applies Policy Act as amended. Requests for petitioner demonstrates that the permit to that 60-day limitations period copies of EPA comments can be directed is not in compliance with the generally and applied against EPA in to the Office of Federal Activities at requirements of the CAA. Section the Caldwell Tanks case to render the (202) 564–7167. An explanation of the 505(b)(2) further provides that the Petitioner’s petition timely under ratings assigned to draft environmental Administrator’s duties under that section 505(b)(2). The court ordered the impact statements (EISs) was published paragraph may not be delegated to Administrator to consider the petition in FR dated April 12, 2002 (67 FR another officer. In addition, section pursuant to section 505(b)(2) and to 17992). 505(e) of the CAA authorizes the grant or deny the petition within 60 Draft EISs Administrator to terminate, modify, or days of the court’s order. See Sierra revoke and reissue a permit for cause at Club v. Whitman, Civil Action No. 01– ERP No. D–AFS–J65359–MT Rating EC2, any time. In accordance with EPA’s 01991 (ESH) (D.D.C. Jan. 30, 2002) Lolo National Forest Post Burn regulations at 40 CFR 70.7(f) and (order and memorandum opinion). In Management Activities, 70.7(g), any person may petition EPA to light of the court’s holding that the Implementation, Ninemile, Superior reopen a permit for cause. However, Petitioner’s petition was timely under and Plains Ranger Districts, Mineral there is no deadline by which EPA is section 505(b)(2), the Administrator Missoula and Sanders Counties, MT. required to respond to such petitions. responded to the petition pursuant to Summary: EPA expressed Georgia Center for Law in the Public that statutory provision in an order, environmental concerns with water Interest submitted a petition on behalf dated April 1, 2002. quality proposed management actions of the Sierra Club (GCLPI or Petitioner) The Petitioner requested that EPA in the 303(d) listed Ninemile Creek to the Administrator on May 9, 2001, object to the Caldwell Tanks permit on and Trout Creek drainages and requesting that EPA object to a state the grounds that the permit is suggested coordinating with the Title V operating permit, issued by the inconsistent with the Clean Air Act State’s TMDL development efforts. Georgia Environmental Protection because the permit failed to: (1) Require EPA recommends that the final EIS Division (Georgia EPD) to Caldwell the submittal of reports of any required should include a summary of major Tanks Alliance, LLC (Caldwell Tanks) monitoring at least every six months, as actions in the project area (and for its facility located in Newnan, required under 40 CFR 70.6(a)(3)(iii)(A); including adjacent lands) which may Georgia. (2) allow all persons to enforce contribute to cumulative effects.

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ERP No. D–FHW–F40405–IL Rating EC2, Dated: May 21, 2002. Marshfield and Appleton, Trestik US 34/FAP 313 Transportation Joseph C. Montgomery, Road—CTH ‘‘K’’ (Stevens Point Facility Improvement Project, US 34 Director, NEPA Compliance Division, Office Bypass), Funding and COE Section from the Intersection of Carman Road of Federal Activities. 404 Permit, Portage County, WI, east of Gulfport to Monmouth, [FR Doc. 02–13154 Filed 5–23–02; 8:45 am] Comment Period Ends: July 08, 2002, Funding and US Army COE Section BILLING CODE 6560–50–P Contact: Wesley Shemwell (608) 829– 404 and NPDES Permits Issuance, 7521. Henderson and Warren Counties, IL. EIS No. 020197, Draft EIS, FRC, ID, C.J. Summary: EPA has identified issues, ENVIRONMENTAL PROTECTION Strike Hydroelectric Project (FERC and expressed environmental AGENCY NO. 2055), Application for a new concerns, relating to characterization [ER–FRL–6629–5] License, Located on the Snake River of existing water quality, impacts to and Bruneau River, Owyhee and impaired waters and impacts to Environmental Impact Statements; Elmore Counties, ID, Comment Period Botanical Site #3, a small sand hill Notice of Availability Ends: July 08, 2002, Contact: John prairie with a diverse mixture of Blair (202) 219–2845. grasses and forbs. Accordingly, EPA Responsible Agency: Office of Federal EIS No. 020198, Draft Supplement, has requested additional information. Activities, General Information (202) NRC, SC, Generic EIS—Catawba 564–7167 or www.epa.gov/compliance/ Nuclear Station, Unit 1 and 2 Final EISs nepa. (Catawba), Renew the Operating ERP No. F–AFS–J65348–CO Bark Beetle Weekly receipt of Environmental Impact Licenses (OLs) for an Additional 20- Analysis, Proposal to Reduce Statements Year Period, Supplement 9 to Infestation of Trees by Tree-Killing Filed May 13, 2002 Through May 17, NUREG–1437, York County, SC, Bark Beetles, Medicine Bow-Routt 2002 Comment Period Ends: August 23, Pursuant to 40 CFR 1506.9. National Forests, Hahans Peak/Bears 2002, Contact: James Wilson (301) EIS No. 020191, Draft EIS, AFS, MT, Ears Ranger District, Routt, Grand, 415–1108. Black Ant Salvage Project, To Salvage Jackson and Moffat Counties, CO. EIS No. 020199, Draft EIS, BLM, WY, 739 Acres of Dead Merchantable Trees Pittsburg and Midway Coal Mining Summary: EPA generally supports the from the Lost Fork Fire of 2001, Lewis Proposal (WYW148816), Exchange suppression and control actions; and Clark National Forest, Meagher Private Owned Land P&M for however, EPA expressed Basin County, MT, Comment Period Federally-Owned Coal, Lincoln, environmental concerns regarding Ends: July 08, 2002, Contact: Scott Carbon and Sheridan Counties, WY, impacts from 15.3 miles of new roads Hill (406) 566–2292. and the effectiveness of preventative EIS No. 020192, Draft EIS, FHW, WY, Comment Period Ends: July 23, 2002, thinning to avert a predicted beetle US 287/26 Improvements Project, Contact: Nancy Doelger (307) 261– epidemic. From Moran Junction to 12 Miles 7627. This document is available on ERP No. F–FHW–F40388–WI US–14/61 West of Dubois, the Roadway the Internet at: (www.wy.blm.gov). Westby—Virogua Bypass Corridor Traverses thru the Bridger-Teton and EIS No. 020200, Draft EIS, DOE, Study, Transportation Improvements, Shoshone National Forests and Grand Programmatic EIS—Hanford Site Funding and US Army COE Section Teton National Park, NPDES and COE Solid (Radioactive and Hazardous) 404 Permit, Cities of Virogua and Section 404 Permits, Teton and Waste Program (DOE/EIS–0286D), Westby, Vernon County, WI. Fremont Counties, WY, Comment Proposal to Enhance Waste Summary: EPA has no objection to the Period Ends: August 28, 2002, Management Practices, Low-Level proposed action. Contact: Galen W. Hesterberg (307) Radioactive; Low-Level Mixed; Transuranic Radioactive; Richland, ERP No. F–NPS–J65346–WY Devil’s 772–2012. Benton County, WA Comment Period Tower National Monument General EIS No. 020193, Final EIS, TPT, CA, Ends: August 22, 2002, Contact: Management Plan, Implementation, Presidio Trust Implementation Plan Michael S. Collins (509) 376–6536. Crook County, WY. (PTIP), An Updated Plan for the Area EIS No. 020201, Final EIS, MMS, AK, Summary: No formal comment letter B of the Presidio of San Francisco, Implementation, San Francisco Bay Liberty Development and Production was sent to the preparing agency. Plan, Beaufort Sea Oil and Gas ERP No. F–UAF–J11019–MT Montana Area, Marin County, CA, Wait Period Ends: June 24, 2002, Contact: John Development, Implementation, To Air National Guard Air-to-Ground Transport and Sell Oil to the U.S. and Training Range Development for Use Pelka (415) 561–5300. EIS No. 020194, Final EIS, FAA, IL, World Markets, Right-of-Way by the 120th Fighter Wing (120th South Suburban Airport, Proposed Application, Offshore Beaufort Sea FW), Implementation, Phillips and Site Approval and Land Acquisition, Marine Environment and Onshore Blaine Counties, MT. For Future Air Carrier Airport, Will North Slope of Alaska Coastal Plan, Summary: EPA continues to express and Kankakee Counties, IL, Wait AK, Wait Period Ends: June 24, 2002, environmental concerns regarding Period Ends: June 24, 2002, Contact: Contact: George Valiulis (703) 787– impacts to people and wildlife from Denis Rewerts (847) 294–7195. 1662. noise and visual stimuli from low EIS No. 020195, Final EIS, HUD, NY, EIS No. 020202, Final Supplement, altitude F–16 flights and other range 1105–1135 Warburton Avenue, River FHW, CA, Devil’s Slide Bypass activities. Club Apartment Complex Improvement, CA–1 from Half Moon ERP No. F–USA–J13000–CO Pueblo Development and Operation, Bay Airport to Linda Mar Boulevard, Chemical Depot, Destruction of Funding, City of Yonkers, Westchester Preferred Alternative Estimated Chemical Munitions, Design, County, NY, Wait Period Ends: June Future Project—Generated Noise Construction, Operation and Closure 24, 2002, Contact: Lee Ellman (914) Study, Funding, Pacifica and San of a Facility, Pueblo County, CO. 377–6557. Mateo Counties, CA, Wait Period Summary: No formal comment letter EIS No. 020196, Draft EIS, FHW, WI, US Ends: June 24, 2002, Contact: Bill was sent to the preparing agency. 10 Highway Improvements between Wong (916) 498–5042.

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EIS No. 020203, Final EIS, SFW, NV, 05/17/2002: Wait Period Ends is Review Decisions (6-YR) and (2) Stillwater National Wildlife Refuge Corrected from 06/07/2002 to 06/17/ Contaminant Candidate List Notice of Complex Comprehensive 2002. Intent on Regulatory Determinations Conservation Plan and Boundary Dated: May 21, 2002. (CCL1). The review will NOT be Revision, Implementation, Churchill conducted on this conference call. A Joseph C. Montgomery, and Washoe Counties, NV, Wait draft agenda for this meeting will be Period Ends: June 24, 2002, Contact: Director, NEPA Compliance Division, Office available from the DFO or Management of Federal Activities. Kim Hanson (775) 423–5128. Assistant approximately one week EIS No. 020204, Draft EIS, NRC, NC [FR Doc. 02–13155 Filed 5–23–02; 8:45 am] before the meeting. Generic EIS—McGuire Nuclear Power BILLING CODE 6560–50–P Background Information about the 6- Station, Units 1 and 2, Supplement 8 Year Review of Existing Regulations: to NUREG–1437, Located on the EPA recently announced its preliminary Shore of Lake Norman, Mecklenburg ENVIRONMENTAL PROTECTION revise/not revise decisions for 68 County, NC, Comment Period Ends: AGENCY chemical National Primary Drinking August 02, 2002, Andrew Kugler (301) [FRL–7217–8] Water Regulations (NPDWRs) and the 415–2828. The above NRC EIS should Total Coliform Rule (TCR) (67 FR 19030; have appeared in the 05/17/2002 EPA Science Advisory Board; April 17, 2002). The Safe Drinking Federal Register. The 75 day Notification of Public Advisory Water Act (SDWA) requires EPA to Comment Period Request by the Committee Meetings periodically review existing NPDWRs Agency will end on August 02, 2002. and, if appropriate, revise them [Section Pursuant to the Federal Advisory 1412(b)(9) of SDWA, as amended in Amended Notices Committee Act, Public Law 92–463, 1996] EIS No. 0210305, Draft Supplement, notice is hereby given that the Drinking The primary goal of the Six Year FAA, MN, Flying Cloud Airport, Water Committee (DWC) of the US EPA Review is to identify, prioritize and Substantive Changes to Alternatives Science Advisory Board (SAB) will meet target candidates for regulatory revision and New Information, Extension of via public teleconference on the date that are most likely to result in an the Runways 9R/27L and 9L/27R, and at the time noted below. All times increased level of public health Long-Term Comprehensive noted are Eastern Time. The meeting is protection and/or a substantial cost Development, In the City of Eden open to the public, however, seating is savings while maintaining the level of Prairie, Hennepin County, MN, limited and available on a first come public health protection. To address this Comment Period Ends: June 19, 2002, basis. Important Notice: Documents that goal, EPA, in consultation with the Contact: Glen Orcutt (612) 713–4354. are the subject of SAB reviews are National Drinking Water Advisory Revision of FR Notice Published on normally available from the originating Council (NDWAC) and other 08/24/2001: CEQ Review Period EPA office and are not available from stakeholders, developed a systematic Ending on 08/17/2001 has been the SAB Office—information concerning approach, or protocol, for the review of Extended to 06/19/2002. availability of documents from the existing NPDWRs. The protocol focused EIS No. 020181, Draft EIS, NRC, VA, relevant Program Office is included on several key elements, including: (i) Generic EIS—North Anna Power below. Health effects (to identify potential Station, Units 1 and 2, Supplement 7 The Drinking Water Committee of the changes in the Maximum Contaminant to NUREG–1437, License Renewal, US EPA Science Advisory Board (SAB), Level Goal (MCLG or health effects goal) VA, Comment Period Ends: August will conduct a public teleconference and perhaps to the maximum 01, 2002, Contact: Andrew Kugler meeting on June 11, 2002. The meeting contaminant level (MCL)); (ii) analytical (301) 415–2828. Revision of FR Notice will begin at 1 pm and adjourn no later feasibility (to identify potential changes Published on 05/17/2002: CEQ than 4 p.m. the same day. The meeting in analytical feasibility for those Comment Date has been corrected will be coordinated through a contaminants where the Maximum from 07/01/2002 to 08/01/2002. conference call connection in Room Contaminant Level (MCL) was limited EIS No. 020141, Draft EIS, COE, WV, 6013 in the USEPA, Ariel Rios Building by the measurement feasibility and to Spruce Mine Number 1 Surface North, 1200 Pennsylvania Avenue, NW., review analytical feasibility limitations Mining Construction Project, US Washington, DC 20004. The public is for contaminants that may have Army COE Section 404 and NPDES encouraged to attend the meeting in the potential changes in the MCLG); (iii) Permits Issuance, Blair, Logan conference room noted above, however, treatment (to evaluate treatment County, WV, Comment Period Ends: the public may also attend through a feasibility if potential changes in MCLG/ May 28, 2002, Contact: James M. telephonic link if lines are available. MCL are likely and to evaluate if there Richmond (304) 529–5210. Revision Additional instructions about how to is an indication that the best available of FR Notice Published on 04/12/ participate in the conference call can be technology (BAT) or treatment 2002: Officially Withdrawn by letter obtained by calling Ms. Mary Winston at technique (TT) requirements need date 04/11/2002. (202) 564–4538, or via e-mail at review); (iv) other regulatory changes (to EIS No. 020184, Final Supplement, [email protected]. Presentation identify any potential non-MCLG/MCL GSA, CA, San Diego—United States slides will be placed on the SAB Web or non-TT types of changes that apply Courthouse Annex Street Project, Site site (www.epa.gov/sab/) prior to the start to public water systems, are ready for Selection and Construction, New of the meeting. rulemaking and are not being addressed Information concerning Addition of Purpose of the Meeting—The primary under alternative mechanisms); (v) the Union Street with Hotel San Diego purpose of this meeting will be for staff occurrence and exposure (to evaluate Facade and Lobby Alternative, Central from EPA’s Office of Water to provide the extent of occurrence and exposure Business District (CBD), City of San background briefings sufficient for the where a potential change in health or Diego, San Diego County, CA, Wait Committee to develop a systematic plan technology provides a potential basis for Period Ends: June 17, 2002, Contact: for responding to the agency request on revising the regulation); and (vi) Rosanne Nieto (415) 522–3490. two topics: (1) Six-Year Review of economics (to qualitatively consider Revision of FR Notice Published on Existing Regulations Notice of Intent on economic impacts where a health or

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technology basis may exists for revising naphthalene (intermediary the protocol used by EPA in making the regulation). After receiving public manufacturing product and moth regulatory determinations appear to be comments and conducting a repellent; (vii) sodium (essential reasonable, appropriate and consistently stakeholders meeting, EPA intends to nutrient, naturally occurring element); applied, in light of limitations of publish final revise/not revise decisions and (viii) sulfate (present in the diet, available data and information, and (ii) by Fall of 2002. naturally occurring element). After if the data set used for both health Tentative Charge for 6 Year Review of receiving public comments and assessments and occurrence Existing Regulations—EPA is interested conducting a stakeholders meeting EPA assessments is adequate for responding in having the EPA Science Advisory intends to publish a final determination to the 3 statutory requirements for Board’s advice on: (1) Whether EPA (Fall of 2002). If EPA determines that determinations of whether or not to consistently applied its protocol for regulations are necessary, they must be regulate a contaminant on the CCL. making determinations of whether or proposed within two years and Availability of Review Materials: The not to revise existing regulations, and promulgated eighteen months after the availability of background materials for (2) whether, in the SAB’s view, EPA proposal. these topics is as follows: a) Six-Year appropriately documented its analyses SDWA requires consideration of three project; contact Wynne Miller by in support of the March announcement. areas when EPA makes a determination telephone at (202) 564–4887 or by email Background Information on the to regulate: (i) Projected adverse health at [email protected]; b) CCL1 Contaminant Candidate List Regulatory effects, (ii) extent of contaminant project; contact Karen Wirth by Determinations—The Safe Drinking occurrence, and (iii) whether regulation telephone at (202) 564–5246 or by email Water Act (SDWA), as amended in 1996, would present a meaningful opportunity at [email protected]. requires EPA to publish a list of for health risk reduction (see SDWA FOR FURTHER INFORMATION CONTACT: contaminants (referred to as the section 1412(b)(1)(A)) when EPA makes Any Contaminant Candidate List, or CCL) to a determination to regulate. member of the public wishing further assist in priority-setting efforts. SDWA EPA’s evaluation approach is based information concerning this meeting or also requires the Agency to select five or on recommendations from National wishing to submit brief oral comments more contaminants from the current Research Council (NRC) and the (3 minutes or less) must contact Thomas CCL and determine, by August 2001, National Drinking Water Advisory Miller, Designated Federal Officer, EPA whether or not to regulate these Council (NDWAC). For each of the nine Science Advisory Board (1400A), U.S. contaminants with a National Primary contaminants, EPA evaluated: (i) The Environmental Protection Agency, 1200 Drinking Water Regulation (NPDWR). sufficiency of current analytical and Pennsylvania Avenue, NW., EPA intends to announce its treatment methods; (ii) the best Washington, DC 20460; telephone (202) preliminary determination decisions in available peer reviewed data on health 564–4558; FAX (202) 501–0582; or via the Federal Register prior to June 11, effects; and (iii) analytical records on e-mail at [email protected]. Requests 2002. contaminant occurrence. For those for oral comments must be in writing (e- The CCL was developed with contaminants with adequate methods, mail, fax or mail) and received by Mr. considerable input from the scientific as well as health effects and occurrence Miller no later than noon Eastern Time community and stakeholders and data, EPA employed an approach to on Tuesday, June 4, 2002. published in March of 1998. The CCL assist in making preliminary regulatory Providing Oral or Written Comments at contains 60 contaminants (50 chemicals determinations that follows the themes SAB Meetings and 10 microbes) that are not subject to recommended by the NRC and NDWAC any current or proposed NPDWRs. In to satisfy the three SDWA requirements It is the policy of the EPA Science 1998, 20 of the 60 contaminants were under section 1412(b)(1)(A)(i)–(iii). Advisory Board to accept written public classified as priorities for regulatory Specifically, EPA characterized the comments of any length, and to determination because EPA believed at human health effects that may result accommodate oral public comments that time that there were sufficient data from exposure to a contaminant found whenever possible. The EPA Science to evaluate both exposure and risk to in drinking water, and based on this Advisory Board expects that public public health, and to support a characterization, estimated a health- statements presented at its meetings will determination of whether or not to related bench-mark level for each not be repetitive of previously proceed to promulgation of an NPDWR. contaminant. Then, for a given submitted oral or written statements. Since then, 12 of the 20 priority contaminant EPA estimated the number Oral Comments: In general, each contaminants were found to have of public water systems and population individual or group requesting an oral insufficient information to support a served by those systems above these presentation at a face-to-face meeting regulatory determination. In addition, bench-mark values, and the geographic will be limited to a total time of ten sodium was added to the list of distribution using a large number of minutes (unless otherwise indicated). regulatory determination priorities. state occurrence data that broadly reflect For teleconference meetings, There are 9 contaminants that have national occurrence. Use and opportunities for oral comment will sufficient data and information to environmental release information, and usually be limited to no more than three consider a determination of whether or ambient water quality data, were used to minutes per speaker and no more than not to regulate: (i) Acanthamoeba augment the State data and evaluate the fifteen minutes total. Deadlines for (microscopic amoeba commonly found likelihood of contaminant occurrence. getting on the public speaker list for a in the environment); (ii) aldrin and The findings from these evaluations meeting are given above. Speakers dieldrin (banned insecticides, used were used to make a preliminary should bring at least 35 copies of their primarily on corn and cotton); (iii) determination on whether to regulate a comments and presentation slides for hexachlorobutadiene (used primarily to contaminant based on the three SDWA distribution to the reviewers and public make rubber compounds); (iv) statutory requirements. at the meeting. Written Comments: manganese (essential nutrient, occurs Tentative Charge for Contaminant Although the SAB accepts written naturally, and has a variety of uses); (v) Candidate List (CCL) Regulatory comments until the date of the meeting metribuzin (herbicide used primarily on Determinations—EPA is interested in (unless otherwise stated), written soybeans, potatoes, and alfalfa); (vi) having the SAB’s advice on (i) whether comments should be received in the

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SAB Staff Office at least one week prior related decisions, and serve to provide the Federal Register listings at http:// to the meeting date so that the guidance to pesticide registrants and www.epa.gov/fedrgstr/. comments may be made available to the OPP personnel. The draft PR Notice You may obtain an electronic copy of committee for their consideration. provides guidance to registrants, all PR Notices, both final and draft, at Comments should be supplied to the applicants, and the public as to what http://www.epa.gov/opppmsd1/ appropriate DFO at the address/contact product brand names may be false or PR_Notices. information noted above in the misleading, either by themselves or in 2. Fax-on-demand. You may request a following formats: one hard copy with association with company names or faxed copy of the draft PR Notice titled, original signature, and one electronic trademarks. In response to a request ‘‘False or Misleading Pesticide Product copy via e-mail (acceptable file format: from stakeholders, EPA is extending the Brand Names,’’ by using a faxphone to Adobe Acrobat, WordPerfect, Word, or comment period for 60 days, until call (202) 564–3119 and selecting item Rich Text files (in IBM-PC/Windows 95/ August 1, 2002. 6146. You may also follow the automated menu. 98 format). Those providing written DATES: Comments, identified by docket 3. In person. The Agency has comments and who attend the meeting ID number OPP–2002–0084, must be established an official record for this are also asked to bring 35 copies of their received on or before August 1, 2002. comments for public distribution. action under docket ID number OPP– ADDRESSES: Comments may be 2002–0084. The official record consists General Information—Additional submitted by mail, electronically, or in information concerning the EPA Science of the documents specifically referenced person. Please follow the detailed in this action, any public comments Advisory Board, its structure, function, instructions for each method as and composition, may be found on the received during an applicable comment provided in Unit I. of the period, and other information related to SAB Web site (http://www.epa.gov/sab) SUPPLEMENTARY INFORMATION. To ensure and in The FY2001 Annual Report of this action, including any information proper receipt by EPA, it is imperative claimed as Confidential Business the Staff Director which is available that you identify docket ID number from the SAB Publications Staff at (202) Information (CBI). This official record OPP–2002–0084 in the subject line on includes the documents that are 564–4533 or via fax at (202) 501–0256. the first page of your response. Committee rosters, draft Agendas and physically located in the docket, as well FOR FURTHER INFORMATION CONTACT: Jeff meeting calendars are also located on as the documents that are referenced in Kempter, Antimicrobials Division our Web site. those documents. The public version of (7510C), Office of Pesticide Programs, Meeting Access—Individuals the official record does not include any Environmental Protection Agency, 1200 requiring special accommodation at this information claimed as CBI. The public Pennsylvania Ave., NW., Washington, meeting, including wheelchair access to version of the official record, which DC 20460; telephone number: (703) the conference room, should contact Mr. includes printed, paper versions of any 305–5448; fax number: (703) 308–6467; Miller at least five business days prior electronic comments submitted during e-mail address: to the meeting so that appropriate an applicable comment period, is [email protected]. arrangements can be made. available for inspection in the Public SUPPLEMENTARY INFORMATION: Information and Records Integrity Dated: May 20, 2002. Branch (PIRIB), Rm. 119, Crystal Mall A. Robert Flaak, I. General Information #2, 1921 Jefferson Davis Hwy., Acting Staff Director, EPA Science Advisory A. Does this Action Apply to Me? Arlington, VA, from 8:30 a.m. to 4 p.m., Board. Monday through Friday, excluding legal [FR Doc. 02–13120 Filed 5–23–02; 8:45 am] This action is directed to the public holidays. The PIRIB telephone number BILLING CODE 6560–50–P in general although this action may be is (703) 305–5805. of particular interest to those persons who are required to register pesticides. C. How and to Whom Do I Submit ENVIRONMENTAL PROTECTION Since other entities may also be Comments? AGENCY interested, the Agency has not You may submit comments through attempted to describe all the specific the mail, in person, or electronically. To [OPP–2002–0084; FRL–7180–9] entities that may be affected by this ensure proper receipt by EPA, it is Pesticides; Draft Guidance for action. If you have any questions imperative that you identify docket ID Pesticide Registrants on False or regarding the information in this notice, number OPP–2002–0084 in the subject Misleading Pesticide Product Brand consult the person listed under FOR line on the first page of your response. Names; Extension of Comment Period FURTHER INFORMATION CONTACT. 1. By mail. Submit your comments to: Public Information and Records B. How Can I Get Additional AGENCY: Environmental Protection Integrity Branch (PIRIB), Information Information, Including Copies of this Agency (EPA). Resources and Services Division Document and Other Related (7502C), Office of Pesticide Programs ACTION: Notice; Extension of comment Documents? period. (OPP), Environmental Protection 1. Electronically. You may obtain Agency, 1200 Pennsylvania Ave., NW., SUMMARY: In the Federal Register of electronic copies of this document, and Washington, DC 20460. March 28, 2002, EPA published a certain other related documents that 2. In person or by courier. Deliver document announcing the availability of might be available electronically, from your comments to: Public Information and sought public comment on a draft the EPA Internet Home Page at http:// and Records Integrity Branch (PIRIB), Pesticide Registration (PR) Notice titled, www.epa.gov/. To access this Information Resources and Services ‘‘False or Misleading Pesticide Product document, on the Home Page select Division (7502C), Office of Pesticide Brand Names.’’ PR Notices are issued by ‘‘Laws and Regulations,’’ ‘‘Regulations Programs (OPP), Environmental the Office of Pesticide Programs (OPP) and Proposed Rules,’’ and then look up Protection Agency, Rm. 119, Crystal to inform pesticide registrants and other the entry for this document under the Mall #2, 1921 Jefferson Davis Hwy., interested persons about important ‘‘Federal Register—Environmental Arlington, VA. The PIRIB is open from policies, procedures, and registration Documents.’’ You can also go directly to 8:30 a.m. to 4 p.m., Monday through

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Friday, excluding legal holidays. The assigned to this action in the subject Pennsylvania Ave., NW., Washington, PIRIB telephone number is (703) 305– line on the first page of your response. DC 20460; telephone number: (703) 5805. You may also provide the name, date, 305–6100; e-mail address: 3. Electronically. You may submit and Federal Register citation. [email protected]. your comments electronically by e-mail SUPPLEMENTARY INFORMATION: to: [email protected], or you can II. What Action is EPA Taking? submit a computer disk as described In the Federal Register of March 28, I. General Information 2002 (67 FR 14941) (FRL–6809–9), EPA above. Do not submit any information A. Does this Action Apply to Me? electronically that you consider to be announced the availability of a draft PR CBI. Avoid the use of special characters Notice titled, ‘‘Pesticides; Draft You may be affected by this action if and any form of encryption. Electronic Guidance for Pesticide Registrants on you are an agricultural producer, food submissions will be accepted in False or Misleading Pesticide Product manufacturer or pesticide manufacturer. WordPerfect 6.1/8.0 or ASCII file Brand Names.’’ The Agency provided a Potentially affected categories and format. All comments in electronic form 60–day comment period, which was entities may include, but are not limited must be identified by docket ID number scheduled to end May 28, 2002. EPA is to: OPP–2002–0084. Electronic comments extending the comment period for the may also be filed online at many Federal draft PR Notice for an additional 60 Depository Libraries. days, until August 1, 2002. NAICS Examples of poten- D. How Should I Handle CBI That I List of Subjects Categories codes tially affected enti- Want to Submit to the Agency? ties Environmental protection, Do not submit any information Administrative practice and procedure, Industry 111 Crop production electronically that you consider to be Agricultural commodities, Pesticides 112 Animal production CBI. You may claim information that and pests. 311 Food manufac- you submit to EPA in response to this turing document as CBI by marking any part or Dated: May 20, 2002. 32532 Pesticide manufac- turing all of that information as CBI. Marcia E. Mulkey, Information so marked will not be Director, Office of Pesticide Programs. disclosed except in accordance with This listing is not intended to be procedures set forth in 40 CFR part 2. [FR Doc. 02–13109 Filed 5–23–02; 8:45 am] exhaustive, but rather provides a guide In addition to one complete version of BILLING CODE 6560–50–S for readers regarding entities likely to be the comment that includes any affected by this action. Other types of information claimed as CBI, a copy of entities not listed in the table could also ENVIRONMENTAL PROTECTION be affected. The North American the comment that does not contain the AGENCY information claimed as CBI must be Industrial Classification System submitted for inclusion in the public [OPP–2002–0075; FRL–7178–2] (NAICS) codes have been provided to version of the official record. assist you and others in determining Information not marked confidential Notice of Filing a Pesticide Petition to whether or not this action might apply will be included in the public version Establish a Tolerance for a Certain to certain entities. If you have questions of the official record without prior Pesticide Chemical in or on Food regarding the applicability of this action notice. If you have any questions about to a particular entity, consult the person AGENCY: Environmental Protection FOR FURTHER INFORMATION CBI or the procedures for claiming CBI, listed under Agency (EPA). CONTACT. please consult the person listed under ACTION: Notice. FOR FURTHER INFORMATION CONTACT. B. How Can I Get Additional SUMMARY: This notice announces the E. What Should I Consider as I Prepare Information, Including Copies of this amended filing of a pesticide petition My Comments for EPA? Document and Other Related proposing the establishment of Documents? You may find the following regulations for residues of a certain 1. Electronically. You may obtain suggestions helpful for preparing your pesticide chemical in or on various food comments: electronic copies of this document, and commodities. certain other related documents that 1. Explain your views as clearly as DATES: Comments, identified by docket possible. might be available electronically, from control number OPP–2002–0075, must the EPA Internet Home Page at http:// 2. Describe any assumptions that you be received on or before June 24, 2002. used. www.epa.gov/. To access this 3. Provide copies of any technical ADDRESSES: Comments may be document, on the Home Page select information and/or data you used that submitted by mail, electronically, or in ‘‘Laws and Regulations’’ ‘‘Regulations support your views. person. Please follow the detailed and Proposed Rules,’’and then look up 4. If you estimate potential burden or instructions for each method as the entry for this document under the costs, explain how you arrived at the provided in Unit I.C. of the ‘‘Federal Register’’ —Environmental estimate that you provide. SUPPLEMENTARY INFORMATION. To ensure Documents.’’ You can also go directly to 5. Provide specific examples to proper receipt by EPA, it is imperative the Federal Register listings at http:// illustrate your concerns. that you identify docket control number www.epa.gov/fedrgstr/. 6. Offer alternative ways to improve OPP–2002–0075 in the subject line on 2. In person. The Agency has the notice. the first page of your response. established an official record for this 7. Make sure to submit your FOR FURTHER INFORMATION CONTACT: By action under docket control number comments by the deadline in this mail: Susan Stanton, Registration OPP–2002–0075. The official record notice. Support Branch, Registration Division consists of the documents specifically 8. To ensure proper receipt by EPA, (7505C), Office of Pesticide Programs, referenced in this action, any public be sure to identify the docket ID number Environmental Protection Agency, 1200 comments received during an applicable

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comment period, and other information D. How Should I Handle CBI That I of the submitted data at this time or related to this action, including any Want to Submit to the Agency? whether the data support granting of the information claimed as confidential Do not submit any information petition. Additional data may be needed business information (CBI). This official electronically that you consider to be before EPA rules on the petition. record includes the documents that are CBI. You may claim information that List of Subjects physically located in the docket, as well you submit to EPA in response to this Environmental protection, as the documents that are referenced in document as CBI by marking any part or those documents. The public version of Agricultural commodities, Feed all of that information as CBI. additives, Food additives, Pesticides the official record does not include any Information so marked will not be information claimed as CBI. The public and pests, Reporting and recordkeeping disclosed except in accordance with requirements. version of the official record, which procedures set forth in 40 CFR part 2. includes printed, paper versions of any In addition to one complete version of Dated: May 16, 2002. electronic comments submitted during the comment that includes any Debra Edwards, an applicable comment period, is information claimed as CBI, a copy of Acting Director, Registration Division, Office available for inspection in the Public the comment that does not contain the of Pesticide Programs. Information and Records Integrity information claimed as CBI must be Summary of Petition Branch (PIRIB), Rm. 119, Crystal Mall submitted for inclusion in the public The petitioner summary of the #2, 1921 Jefferson Davis Highway, version of the official record. pesticide petition is printed below as Arlington, VA, from 8:30 a.m. to 4 p.m., Information not marked confidential Monday through Friday, excluding legal required by section 408(d)(3) of the will be included in the public version FFDCA. The summary of the petition holidays. The PIRIB telephone number of the official record without prior is (703) 305–5805. was prepared by Bayer Corporation and notice. If you have any questions about represents the view of the petitioner. C. How and to Whom Do I Submit CBI or the procedures for claiming CBI, EPA is publishing the petition summary Comments? please consult the person identified verbatim without editing it in any way. under FOR FURTHER INFORMATION You may submit comments through The petition summary announces the CONTACT. the mail, in person, or electronically. To availability of a description of the ensure proper receipt by EPA, it is E. What Should I Consider as I Prepare analytical methods available to EPA for imperative that you identify docket My Comments for EPA? the detection and measurement of the pesticide chemical residues or an control number OPP–2002–0075 in the You may find the following subject line on the first page of your explanation of why no such method is suggestions helpful for preparing your needed. response. comments: 1. By mail. Submit your comments to: 1. Explain your views as clearly as Bayer Corporation Public Information and Records possible. Integrity Branch (PIRIB), Information 2. Describe any assumptions that you PP 0F6084 Resources and Services Division used. In the Federal Register of March 1, (7502C), Office of Pesticide Programs 3. Provide copies of any technical 2000 (65 FR 11052) (FRL–6489–9), EPA (OPP), Environmental Protection information and/or data you used that published a Notice of Filing of a Agency, 1200 Pennsylvania Ave., NW., support your views. Pesticide Petition (PP 0F6084) from Washington, DC 20460. 4. If you estimate potential burden or Bayer Corporation, 8400 Hawthorn 2. In person or by courier. Deliver costs, explain how you arrived at the Road, P.O. Box 4913, Kansas City, MO your comments to: Public Information estimate that you provide. 64120-0013, proposing, pursuant to and Records Integrity Branch (PIRIB), 5. Provide specific examples to section 408(d) of the FFDCA, 21 U.S.C. Information Resources and Services illustrate your concerns. 346a(d), to amend 40 CFR part 180 by Division (7502C), Office of Pesticide 6. Make sure to submit your establishing tolerances for residues of Programs (OPP), Environmental comments by the deadline in this cyfluthrin, cyano (4-fluoro-3- Protection Agency, Rm. 119, Crystal notice. phenoxyphenyl)methyl-3-(2,2- Mall #2, 1921 Jefferson Davis Highway, 7. To ensure proper receipt by EPA, dichloroethenyl)-2,2-dimethyl Arlington, VA. The PIRIB is open from be sure to identify the docket control cyclopropane carboxylate, in or on the 8:30 a.m. to 4 p.m., Monday through number assigned to this action in the raw agricultural commodity mustard Friday, excluding legal holidays. The subject line on the first page of your greens, greens at 7.0 parts per million PIRIB telephone number is (703) 305– response. You may also provide the (ppm); lettuce, leaf at 3.0 ppm; lettuce, 5805. name, date, and Federal Register head at 2.0 ppm; and Head and Stem 3. Electronically. You may submit citation. Brassica (Subgroup 5A) at 2.0 ppm. EPA your comments electronically by e-mail has received an amendment to pesticide to: [email protected], or you can II. What Action is the Agency Taking? petition 0F6084 from Bayer Corporation, submit a computer disk as described EPA has received a pesticide petition increasing the proposed tolerance for above. Do not submit any information as follows proposing the establishment Head and Stem Brassica (Subgroup 5A) electronically that you consider to be and/or amendment of regulations for to 2.5 ppm. The proposed tolerances for CBI. Avoid the use of special characters residues of a certain pesticide chemical mustard greens, leaf lettuce and head and any form of encryption. Electronic in or on various food commodities lettuce remain unchanged. EPA has submissions will be accepted in under section 408 of the Federal Food, determined that the amended petition Wordperfect 6.1/8.0 or ASCII file Drug, and Cosmetic Act (FFDCA), 21 contains data or information regarding format. All comments in electronic form U.S.C. 346a. EPA has determined that the elements set forth in section must be identified by docket control this petition contains data or 408(d)(2) of the FFDCA; however, EPA number OPP–2002–0075. Electronic information regarding the elements set has not fully evaluated the sufficiency comments may also be filed online at forth in section 408(d)(2); however, EPA of the submitted data at this time or many Federal Depository Libraries. has not fully evaluated the sufficiency whether the data support granting of the

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petition. Additional data may be needed Attorney, U.S. Environmental Protection how each Bank’s board of directors will before EPA rules on the petition. Agency, Region 8, Suite 300, 999 18th monitor and maintain capital Summary information on cyfluthrin Street, Denver, Colorado 80202. and sufficiency, if its proposed plan is residue chemistry, toxicological profile, should refer to In the Matter of Utah approved. aggregate exposure, cumulative effects, Transit Authority. Only members of the board of safety determination and international Availability: The proposed settlement directors of each Bank, as designated by tolerances was published in the original is available for public inspection at the the chair of each board, may testify in Notice of Filing of Pesticide Petition EPA Library, U.S. Environmental the hearing. Written submissions are 0F6084 (65 FR 11052, March 1, 2000) Protection Agency, Region 8, First Floor, welcome from all other interested and most recently in the Federal 999 18th Street, Denver, Colorado parties. All testimony, including the Register of May 17, 2001 (66 FR 27465) 80202. A copy of the proposed written statements of each Bank, must (FRL–6781–8). Agreement may be obtained from be submitted in electronic format to the [FR Doc. 02–13122 Filed 5–23–02; 8:45 am] Richard Sisk (8ENF–L), Attorney, U.S. Finance Board no later than 48 hours BILLING CODE 6560–50–S Environmental Protection Agency, before the hearing. In addition, 100 Region 8, Suite 300, 999 18th Street, copies of testimony submitted for the Denver, Colorado 80202. record and of each Bank’s statement ENVIRONMENTAL PROTECTION FOR FURTHER INFORMATION CONTACT: must be delivered to the Cleveland AGENCY Richard Sisk (8ENF–L), Attorney, U.S. Airport Marriott, Attention: Federal [FRL–7217–9] Environmental Protection Agency, Housing Finance Board/June 5, 2002, Region 8, 999 18th Street, Denver, before the start of the hearing. Notice of Proposed Prospective Colorado 80202. (303) 312–6638. Status: This hearing will be open to Purchaser Agreement Pursuant to the the public. It is so agreed: Comprehensive Environmental ADDRESSES: Send testimony and Dated: May 9, 2002. Response, Compensation and Liability comments to Elaine L. Baker, Secretary Act of 1980, as Amended by the Carol Rushin, to the Board, by electronic mail to Superfund Amendments and Assistant Regional Administrator, Office of [email protected], or by regular mail to Reauthorization Act, Utah Transit Enforcement, Compliance, and the Federal Housing Finance Board, Environmental Justice, Region 8. Authority 1777 F Street, NW., Washington, DC [FR Doc. 02–13121 Filed 5–23–02; 8:45 am] 20006. Comments will be available for AGENCY: Environmental Protection BILLING CODE 6560–50–P public inspection at this address. The Agency (EPA). 100 copies of testimony for the hearing ACTION: Notice; request for public must be delivered to the Cleveland comment. FEDERAL HOUSING FINANCE BOARD Airport Marriott, Attention: Federal SUMMARY: Notice is hereby given that a [No. 2002–N–5] Housing Finance Board/June 5, 2002. proposed Prospective Purchaser FOR FURTHER INFORMATION CONTACT: Agreement (‘‘PPA’’) was executed by the Notice of Public Hearing on Federal Elaine L. Baker, Secretary to the Board, U.S. Environmental Protection Agency Home Loan Banks of Cincinnati and 202–408–2837, or Thomas D. Casey, on March 18, 2002, subject to final Chicago Capital Plans Counsel to the Chairman, 202–408– 2957. approval by the U.S. Department of AGENCY: Federal Housing Finance Justice. The proposed PPA would Board. Dated: May 22, 2002. resolve potential claims under sections ACTION: Notice of public hearing. James L. Bothwell, 106 and 107 of the Comprehensive Managing Director. Environmental Response, SUMMARY: Notice is hereby given that [FR Doc. 02–13281 Filed 5–23–02; 8:45 am] Compensation, and Liability Act, 42 the Federal Housing Finance Board BILLING CODE 6725–01–P U.S.C. 9606 and 9607, against the Utah (Finance Board) will hold the following Transit Authority (‘‘UTA’’), a public public hearing: transit district and a political Time and Date of Hearing: subdivision of the State of Utah, which Wednesday, June 5, 2002 at 10 am EDT. FEDERAL RESERVE SYSTEM is acquiring a railroad corridor and Place: Cleveland Airport Marriott, Change in Bank Control Notices; related property from the Union Pacific 4277 West 150th Street, Cleveland, OH Acquisition of Shares of Bank or Bank Railroad in order to construct a public 44135. Holding Companies transit ‘‘light-rail’’ system serving the Agenda: The boards of directors of the greater Salt Lake area (the ‘‘Property’’). Cincinnati and Chicago FHLBanks have The notificants listed below have By entering into the PPA, UTA agrees to submitted proposed capital plans which applied under the Change in Bank provide EPA access to the Property, differ from most other plans. The Control Act (12 U.S.C. 1817(j)) and complete an environmental audit and Finance Board wishes an opportunity to § 225.41 of the Board’s Regulation Y (12 conduct environmental sampling of the better understand the judgments and CFR 225.41) to acquire a bank or bank Property, to characterize soil which is decisions made by the boards of each holding company. The factors that are excavated to construct the ‘‘light-rail’’ Bank in designing the proposed plans. considered in acting on the notices are system, and to properly handle or In particular, the Finance Board expects set forth in paragraph 7 of the Act (12 dispose of soils which are found to be to learn more about: The business U.S.C. 1817(j)(7)). contaminated. strategies embodied in the plans; the The notices are available for For Fifteen (15) days following the methods used by each board to solicit immediate inspection at the Federal date of publication of this document, member views; how the details of the Reserve Bank indicated. The notices the Agency will receive written proposed plans will be disclosed to also will be available for inspection at comments relating to the proposed members; and how each plan will the office of the Board of Governors. settlement. Comments should be operate, if approved and implemented. Interested persons may express their addressed to Richard Sisk (8ENF–L), The Finance Board also hopes to learn views in writing to the Reserve Bank

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indicated for that notice or to the offices indicated or the offices of the Board of Closing Date: The closing date for of the Board of Governors. Comments Governors not later than June 17, 2002. submitting applications under this must be received not later than June 7, A. Federal Reserve Bank of Atlanta announcement is July 23, 2002. Please 2002. (Sue Costello, Vice President) 1000 e-mail Brenda Benesch at A. Federal Reserve Bank of Chicago Peachtree Street, N.E., Atlanta, Georgia [email protected] by June 13, (Phillip Jackson, Applications Officer) 30309-4470: 2002, to inform the government of your 230 South LaSalle Street, Chicago, 1. First Georgia Holding, Inc., intent to submit an application. Please Illinois 60690-1414: Brunswick, Georgia; to become a bank include the proposed title of the project 1. Kettering Family, Steven Kettering, holding company by acquiring 100 and the name of the agency submitting Lake View, Iowa; Michael Kettering, percent of the voting shares of First the application. Please put ‘‘intent to Lake View, Iowa; and June Kettering Georgia Bank, Brunswick, Georgia. submit—track 1’’ or ‘‘intent to submit— Manary, Livingston, Texas; to acquire 2. Peoples Community BancShares, track 2’’ in the subject line of your voting shares of JEMS, Inc., Lake View, Inc., Sarasota, Florida; to become a bank email. Providing notice of intent to Iowa, and thereby indirectly acquire holding company by acquiring 100 submit is not a requirement for voting shares of Farmers State Bank, percent of the voting shares of Peoples submitting an application. However, a Lake View, Iowa. Community Bank of the West Coast, notice of intent to submit will help the Sarasota, Flordia. federal government in the planning for Board of Governors of the Federal Reserve B. Federal Reserve Bank of Chicago System, May 20, 2002. the review process. (Phillip Jackson, Applications Officer) Mailing Address: Applications should Jennifer J. Johnson, 230 South LaSalle Street, Chicago, be submitted to Michael J. Loewe, Secretary of the Board. Illinois 60690-1414: Deputy Grants Management Officer, [FR Doc. 02–13031 Filed 5–23–02; 8:45 am] 1. Metropolitan Bank Group, Inc., Grants Management Branch, National BILLING CODE 6210–01–S Chicago, Illinois; to retain more than 5 Institute of Child Health and Human percent of the voting shares of Development, U.S. Department of Upbancorp, Inc., Chicago, Illinois, and Health and Human Services, 6100 FEDERAL RESERVE SYSTEM thereby indirectly retain voting shares of Executive Boulevard, Room 8A01, Uptown National Bank of Chicago, Bethesda Maryland 20892–7510 Formations of, Acquisitions by, and Chicago, Illinois. Mergers of Bank Holding Companies (Regular Mail), Rockville Maryland Board of Governors of the Federal Reserve 20852 (Express Mail), Phone: (301) 435– The companies listed in this notice System, May 20, 2002. 6995. Administrative questions will be have applied to the Board for approval, Jennifer J. Johnson, accepted and responded to up to ten pursuant to the Bank Holding Company Secretary of the Board. working days prior to closing date of Act of 1956 (12 U.S.C. 1841 et seq.) [FR Doc. 02–13032 Filed 5–23–02; 8:45 am] receipt of applications. (BHC Act), Regulation Y (12 CFR Part BILLING CODE 6210–01–S You will receive e-mail confirmation 225), and all other applicable statutes to notify you that your application was and regulations to become a bank received within 14 days of the closing holding company and/or to acquire the DEPARTMENT OF HEALTH AND date. If you do not receive confirmation assets or the ownership of, control of, or HUMAN SERVICES within 14 days of the closing date, the power to vote shares of a bank or please contact: Michael J. Loewe at the bank holding company and all of the Office of the Secretary, Assistant address above. banks and nonbanking companies Secretary for Planning and Evaluation The printed Federal Register notice is owned by the bank holding company, the only official program including the companies listed below. Notice of Funding Availability for announcement. Although reasonable The applications listed below, as well Policy and Research Grants (State efforts are taken to assure that the as other related filings required by the Innovation Grants) information on the ASPE World Wide Web Page is accurate and complete, it is Board, are available for immediate AGENCY: The Office of the Assistant inspection at the Federal Reserve Bank provided for information only. The Secretary for Planning and Evaluation applicant bears sole responsibility to indicated. The application also will be (ASPE), HHS. available for inspection at the offices of assure that the copy downloaded and/or ACTION: Announcement of the the Board of Governors. Interested printed from any other source is availability of funds and request for persons may express their views in accurate and complete. Any applications from States for innovation writing on the standards enumerated in amendments to this announcement will grants. the BHC Act (12 U.S.C. 1842(c)). If the be published in the Federal Register as well as on the ASPE World Wide Web proposal also involves the acquisition of SUMMARY: ASPE invites state agencies to a nonbanking company, the review also submit competitive grant applications Pages at http://aspe.hhs.gov/ includes whether the acquisition of the for financial assistance in order to plan funding.htm. We encourage applicants nonbanking company complies with the for, or implement, innovative to check periodically to see if any standards in section 4 of the BHC Act approaches for the delivery of health amendments have been published. We (12 U.S.C. 1843). Unless otherwise and human services. This will also post answers to questions that noted, nonbanking activities will be announcement has 2 tracks. Track 1 is we receive about the announcement that conducted throughout the United States. for demonstration grants; track 2 is for are of general interest at the above Additional information on all bank planning grants. States may submit address. holding companies may be obtained applications to either or both tracks. FOR FURTHER INFORMATION CONTACT: from the National Information Center There is no limit on the number of Administrative questions should be website at www.ffiec.gov/nic/. applications that a state may submit. directed to the Michael Loewe at the Unless otherwise noted, comments The Catalog of Federal Domestic National Institute of Child and Human regarding each of these applications Assistance Number: The CFDA number Development (NICHD) at the address or must be received at the Reserve Bank is 93.239. phone number listed above. Technical

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questions should be directed to Brenda human services more efficiently. This We are particularly interested in Benesch, either by telephone (202–260– grant program will encourage such multi-disciplinary projects that seek to 0382), fax (202–690–6562), e-mail creativity. It will build on activities better coordinate healthcare, long-term ([email protected]) or in writing already taking place at the state and care, and human services systems and at the following address, Office of the local levels to devise better coordinated services. We encourage states to submit Assistant Secretary for Planning and systems and programs tailored to the ideas of their own choosing, but we Evaluation, Department of Health and needs of specific populations. There are have noted some examples below and in Human Services, 200 Independence a broad array of interesting models the appendix. States are not required to Avenue, SW., Room 450G, Hubert H. focusing on particular issues, such as use any of the suggested ideas. Humphrey Building, Washington, DC enhancing gateways to services (e.g., A. Streamlined Access to Health Care 20201. If you send your question(s) in schools); promoting family formation, and/or Human Services and Benefits writing, please call to confirm receipt. responsible fatherhood, and responsible B. State Data Enhancements Technical questions will be accepted child-rearing in the context of marriage; C. Comprehensive Support Services and responded to up to ten working improving outcomes for children and for Children and Families days prior to the closing date of receipt youth; facilitating the involvement of D. Long-Term Care Services and of applications. faith-based and community-based Resources By participating in this grant program, groups in the delivery of health and ADDRESSES: Application materials are states will help to provide much- social services; consumer-directed included in this package and are also needed, credible information to approaches to home and community- available from the ASPE World Wide government officials and others about Web site: http://aspe.hhs.gov/ based long-term care services; and how their programs affect families and funding.htm or by calling Michael providing culturally competent services. children. HHS hopes that its Loewe at (301) 435–6995. These, and like models, could be sponsorship of this grant program will SUPPLEMENTARY INFORMATION: This considered. provide an opportunity for states to program announcement consists of four The grants will be administered by learn from one another’s successes and parts: Part I: Background—Legislative ASPE in conjunction with the National experiences. authority, Background information, Institute of Child Health and Human Purpose, Technical assistance and Development. We will also facilitate D. Technical Assistance and Process process evaluation; Part II: Project and information exchange among grantees, Evaluation Applicant Eligibility—Eligible other States, and others interested in ASPE will fund an independent applicants, Available funds, Budget and new and creative ways to deliver health contractor to provide technical project period, and Matching and/or human services. This could be in assistance. We expect that the contractor requirements; Part III: The Review the form of technical assistance, a will provide on-site technical assistance Process—Intergovernmental review, conference, a website, and/or briefings. and develop technical assistance and training materials for States. An Initial screening, and Competitive C. Purpose review and evaluation criteria; Part IV: independent process evaluation will The Application—Application This competitive grant program will also be conducted with ASPE funds. development, and Application allow selected States to design and/or The process evaluation will, at a submission, Disposition of applications, demonstrate new models for delivering minimum, address key research and Components of a complete health care, long-term care, and/or questions: application; Part V: Questions and human services to low-income adults, 1. What are the issues and challenges Answers; and Part VI: Appendix. families, and children. We are interested associated with implementing and in funding applicants that demonstrate operating the funded projects? Part I. Background their interest in implementing 2. What are the expected short and A. Legislative Authority innovative ideas. The goals of this long-term implications of this intervention for clients, as well as for This announcement is authorized by initiative are twofold: to increase the effectiveness of health and human agencies involved? section 1110 of the Social Security Act 3. What other innovative ideas/ (42 U.S.C. 1310) and section 301 of the services by fostering innovative approaches to service delivery; and to projects may grow out of each funded Public Health Service Act and awards project and the program as a whole? will be made from funds appropriated share information gained through this program with other state agencies and The evaluation will address: under the Departments of Labor, Health • Strategies undertaken to implement interested parties so that they may learn and Human Services, and Education, the innovation (e.g. participation of about, and potentially replicate, and Related Agencies Appropriations community representatives, client innovative approaches. Act, 2002 (Pub. L. 107–116). participation, partnerships with local There are two ‘‘tracks’’ under this B. Background Information and state government agencies, etc.) announcement. Track 1 applicants are • Process and other outcomes for New approaches to integrating diverse expected to be those state agencies that clients funding streams, expanding services to are ready to implement proposed • Changes in communication/ new populations, or redesigned service innovations or expand existing collaboration between local agencies, delivery systems often emerge from innovative strategies. Track 1 applicants states, and providers innovations at the state or local level. likely will have innovative strategies • Potential organizational changes Secretary Thompson initiated this grant developed and most or all aspects of the resulting from ideas generated through program to stimulate states to develop programs or services will have been the design or implementation process new and creative approaches to program piloted, if not fully implemented. Track (i.e. state or local policy changes, new planning and health and human service 2 applicants are expected to be those programs initiated, fostering of delivery. state agencies that have innovative community collaboration) As laboratories for innovation, states ideas, but need time for further planning • Potential for further research and are uniquely positioned to develop to fully develop or finalize operational evaluation on outcomes for service approaches for providing health and plans. population

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We expect that the work undertaken No funds may be paid as profit to evaluation (this must be indicated on through this evaluation will result in grantees or subgrantees, i.e., any amount the page with the project abstract—see important operational lessons and in excess of allowable direct and part IV, section E, 8(a)), and (4) is within sound information about implementing indirect costs of the recipient (45 CFR the page limit (see part III, section C). innovative approaches. ASPE expects 74.81). Grant monies can be used for Note that applications exceeding the that this investment will benefit low- services to the extent that the cost of the page limit will not be reviewed further income clients and families, state and services cannot be covered under and will be ineligible for funding. existing programs. local health and human service C. Competitive Review and Evaluation administrators, others who work with D. Matching Requirements Criteria low-income people, and the general public. Grantees must provide at least 10 Applications that pass the initial percent of the total approved cost of the ASPE pre-review screening will be Part II. Project and Applicant Eligibility project. The total approved cost of the evaluated and rated by an independent A. Eligible Applicants project is the sum of the Federal share review panel on the basis of specific and the non-Federal share. The non- evaluation criteria. The evaluation The District of Columbia and any of Federal share may be met by cash or in- criteria are designed to assess the the 50 states are eligible to apply for kind contributions, although applicants quality of the proposed project and to funding. are encouraged to meet their match determine the likelihood of its success. In order to be considered under this requirements through cash The evaluation criteria are closely announcement, applicants under either contributions. For example, a state with related and are considered as a whole in Track 1 or 2 should indicate their a project with a total budget (both direct judging the overall quality of an willingness and intention to participate and indirect costs) of $500,000 may application. Points are awarded only to in a process evaluation, under the request up to $450,000 in federal funds. applications that are responsive to the direction of and with assistance from Matching requirements cannot be met evaluation criteria as provided in this HHS and its contractor. with funds from other federally-funded program announcement. B. Available Funds programs. In order to ensure that the interests of If a proposed project activity has the Federal Government are met, in Approximately $2.5 million is approved funding support from other making the final selections, ASPE may expected to be available from ASPE funding sources, the amount, duration, consider additional factors, in addition funds appropriated for fiscal year 2002. purpose, and source of the funds should to the review criteria identified below We estimate that this level of funding be indicated in materials submitted such as the applicants’ capacity for will support between 4–6 Track 1 under this announcement. If completion innovation (we encourage states with demonstration grants and between 10 of the proposed project activity is historically limited capacity to apply for and 20 Track 2 planning grants. contingent upon approval of funding grants), the potential impact of the C. Budget and Project Period from other sources, the relationship innovation on the target population, the between the funds being sought potential for building upon funded Awards made under this elsewhere and from ASPE should be activities, the extent of partnerships announcement for Track 1 will be for up discussed in the budget information with local entities, the overall diversity to 12-month budget periods. States may submitted as a part of the abstract. In of program activities within the propose projects up to 36 months in both cases, the contribution that ASPE applicant pool, and the overall diversity duration. Subject to the availability of funds will make to the project should be of geographic areas within the applicant funds, grantees with projects which last clearly presented. pool. longer then 12 months will be allowed Although the review criteria are the to submit subsequent applications for Part III. The Review Process same for applications submitted under additional funding, at a lower level, for A. Intergovernmental Review either Track 1 or Track 2, the level of the additional budget period(s). detail contained in the application is Decisions on subsequent funding will be State Single Point of Contact (E.O. No. expected to be greater for Track 1 made on a noncompetitive basis based 12372) applications given that the applicant has on the availability of funds, the DHHS has determined that this likely progressed further in formulating adequate progress of the grantee, and program is not subject to Executive the proposed approach (e.g., identifying such other similar criteria as the Order 12372, ‘‘Intergovernmental questions to be addressed, developing Department determines. Any requested Review of Federal Programs.’’ and implementing retention and/or additional funding will be reviewed to Applicants are not required to seek advancement strategies, identifying data determine that the continuation of the intergovernmental review of their sources) and that more funds are project is consistent with the purposes applications within the constraints of available. Track 1 applications should of the announcement. Awards made E.O. 12372. be 10–20 pages, and Track 2 under this announcement for Track 2 B. Initial Screening applications should be 5–10 pages. will be for up to 12-month budget Applications exceeding the page limit periods and 17 month project periods. Each application submitted under this will not be reviewed. Applicants are After award, any purchase of program announcement will undergo a requested to be concise. More computer hardware or software needs to pre-review to determine that (1) the information about application be requested in writing by the grantee application was received by the closing submission is provided under Part IV, and approved in writing by the ASPE date and submitted in accordance with below. project officer and the grants officer. the instructions in this announcement Proposed projects will be reviewed Purchases of computer hardware or (2) the applicant is eligible for funding, using the following evaluation criteria: software for routine uses will not be (3) must include assurance that they and (1) Approach: (40 POINTS) considered. See section Part IV, Section other relevant participating The application will be judged on the II for more information on review organizations will be willing to field test extent to which the proposed criteria for MIS/Data System proposals. strategies and to participate in a process approaches to project activities are

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adequate and appropriate to meet the data, and the willingness of the related to data elements and definitions objectives for projects in this program as applicant agency to obtain data needed will be reached. set out in this announcement. As a part for the evaluation. Any limitations • What is expected to be funded of the proposed approach, the regarding data availability or access under the grant (hardware, software, application should identify the key, should be discussed, including any fees personnel, consultants)? relevant organizations that will be for data. • How system maintenance and involved in project activity and describe Any application for a project upgrades will be sustained after the operational relationships that exist or involving the use of personally- grant. will be put into place among the state, identifiable information about patients local public, private and non-profit or clients that grantees collect should (2) Objectives and Need for Assistance: agencies, and any other entities. Plans describe how the project intends to (15 points) for cross-agency collaboration should be address the privacy and confidentiality The applications should describe (1) clearly explained. issues presented by the data collection. issues and challenges which the Track 1 applicants should include a The description should not include applicant has considered and dealt with discussion of the proposed approach for details of collection, consent, security to date in designing and/or implementing and operating the and the like. It should describe the implementing strategies for system innovative strategies identifying specific organizational and planning approaches improvements, including an assessment steps to be undertaken. Track 2 that will ensure that the project of the current delivery system and the applicants should discuss the approach addresses these issues in a thoughtful most urgent needs of the project’s target for implementing planning activities. If way, respectful of the patients’ and population or system, and (2) the alternative strategies are already clients’ privacy and dignity, in accord proposed innovation strategy and ways operating, the discussion should with all applicable law, and, if in which it will significantly enhance indicate how long they have been in appropriate, taking particular account of performance. A description of existing place and ways in which they will be the special privacy issues created by resources and programs for the target affected by the proposed innovation. For systems that integrate or link population, barriers in the current track 1, the approach should include a administrative data across several delivery system, and gaps in service discussion of the time frame and action programs that serve the same delivery should also be included. The steps necessary before the project population. applicant should include any becomes operational (e.g., staff must be Management Information Systems/ supporting data or available information trained over the next six months; Data Enhancement—If one of the which suggest why the innovation is partnerships with local agencies, non- project’s components includes the needed. Applications will be judged on profits, employers, etc. must be development of a management the relevance of the discussion to the established, etc.) The application will be information system (MIS) or program objectives set out within this judged based on the extent to which the enhancement of data systems, please announcement. The application will proposed project demonstrates a firm append a supplemental description of also be judged on the extent to which commitment of State, and/or local, and/ the existing system and the proposed the innovation proposed will help to or private funding and /or in-kind enhancements (If applicable, this address the target population’s needs, contributions dedicated to sustainability section should be included as an build the knowledge base, and have of the project, on the extent to which it appendix and should not be more than applicability to a range of states and is innovative, and on its potential for 3 pages. The appendix does not count localities. improving outcomes either in target toward the page limit). populations or management of state This supplemental information on (3) Results or Benefits Expected: (15 programs. MIS/data system development will be points) The application should include a brief reviewed separately by a technical discussion of the location of the review panel. The supplemental The application should describe how proposed project. Maps or other graphic descriptions should also include the the proposed innovation will address aids may be attached. Applications following: the identified needs and improve the should include appropriate information • The goals of the MIS/data project delivery of services or activities. The about the size of the target population and how they fit into the overall goals application should identify specific in the proposed site/area and other data and needs of the applicant’s current outcome measures (goals) to be achieved or information available that relate to system. through the innovation (Examples of the project activity. • The current and intended system, innovative strategies are attached). It may be necessary for agencies to including plans to manage data and Goals should be tied to discrete, provide data to an evaluation contractor. create or purchase software; measurable objectives. Examples The types of data likely to be required connectivity such as wide area include: Increase in the proportion of under this project include networks, web-based access, smart cards participants entering jobs at higher wage administrative data, including data on and expanded connections to existing levels; increased partnerships between program attendance, or other mainframe systems; compliance with agencies and employers to support participation data. Data may also be Health Insurance Portability and working families; increased access to collected from program managers and Accountability Act (HIPAA) health and human services benefits; staff and from individuals participating requirements for patient privacy and increased integration of programs or in the demonstration program. The confidentiality, and security plans. services targeting clients with multiple proposed approach should indicate the • The implementation steps, the barriers; increased innovation related to availability of such data, the source of current status of implementation, and ‘‘consumer-directed’’ approaches to the data, the extent to which it can be planned training for users of the system. home and community-based long-term obtained or accessed by the applicant • The decision-making process for care services; more rapid access to organization, the existence of data MIS including how the proposed program and client date; etc. The exchange agreements with other activities were selected, who was application will be judged on the extent agencies that are the source of needed consulted, and how ongoing decisions to which the proposed program design

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or policies can be expected to achieve application will be judged on the extent [email protected] by June 13, the stated project goals. to which adequate staffing and other 2002, to inform the government of your In committing to participate in a resources will be provided as required intent to submit an application. Please process evaluation, applicants should be to successfully carry out the tasks and include the proposed title of the project able to report baseline information, activities proposed. (Applicants should and the name of the agency submitting including the size of the target refer to the budget information the application. Please put ‘‘intent to population and the expected number of presented in the Standard Forms 424 submit—track 1’’ or ‘‘intent to submit— individuals or families to be served by and 424A, which can be found at track 2’’ in the subject line of your the project, as appropriate. Interim and http://aspe.hhs.gov/funding.htm). email. Providing notice of intent to final program reports will be required. submit is not a requirement for Part IV. The Application submitting an application. However, a (4) Staff and Position Data: (10 Points) A. Application Development notice of intent to submit will help the The application should include a federal government in the planning for In order to be considered for an award listing of key individuals who will the review process. U.S.P.S. mailed under this program announcement, an oversee and work on the project, applications shall be considered as application must be submitted on the specifically identifying the key meeting the announced deadline if they forms supplied and in the manner individuals from the applicant agency are either received on or before the who will serve as the primary contacts prescribed by ASPE. Application deadline date or postmarked on or for ASPE and contractor staff, indicating materials including forms and before the deadline date and received by their positions, areas of responsibility instructions are attached to this ASPE in time for the independent and authority, and the proportion of announcement. Additional copies are review to: Michael J. Loewe, Deputy time that will be available for project available from Brenda Benesch or may Grants Management Officer, Grants activity. be obtained electronically from the Management Branch National Institute Applications will be judged on the ASPE World Wide Web site: http:// of Child Health and Human extent to which individuals with aspe.hhs.gov/funding.htm Development, U.S. Department of appropriate authority, positions, and Applicants should refer to the Health and Human Services, 6100 experience will work on the project and attached application kit for instructions Executive Boulevard, Room 8A01, the adequacy of time allocated for key regarding which forms, certifications Bethesda Maryland 20892–7510 staff to the project. In addition, the and assurances are required and for (Regular Mail), Rockville Maryland application will be judged on the extent instructions on completing the forms 20852 (Express Mail), Phone: (301) 435– to which there is a commitment to the and preparing and submitting the 6995 Fax: (301) 402–0915. project evidenced by the participation of application. Each application package If applicants use a commercial mail senior state and local officials and must include an original and two copies service, they must ensure that a legibly managers and on the adequacy of the of the complete application. All pages of dated, machine produced postmark of a proposed plans for obtaining advice and the narrative must be sequentially commercial mail service is affixed to the direction regarding project work and numbered and unbound. envelope/package containing the involvement and assistance to resolve Applications must be received in the application. To be acceptable as proof of issues or problems, as appropriate. following format: timely mailing, a postmark from a • 12 point font size commercial mail service must include (5) Adequacy of Workplan (10 points) • Single line spacing the logo/emblem of the commercial mail Track 1 applicants should provide • 1 inch top, bottom, left, and right service company and must reflect the details about how demonstration margins date the package was received by the projects will be implemented, and Track • Applications under Track 1 should commercial mail service company from 2 applicants should provide details be 10–20 pages. Applications submitted the applicant. Private Metered about how the planning processes will under Track 2 applications should be 5– postmarks shall not be acceptable as evolve. Applications should delineate 10 pages. Page limits apply to items proof of timely mailing. (Applicants are tasks for completing the work, indicate Section IV, E, 8(b–e) only; page limits cautioned that express/overnight mail staff assignments for each task, and do not include standard forms, services do not always deliver as provide a schedule for completing each certificates, and the like. Forms are agreed.) task. Applicants should also describe available from Brenda Benesch or may Applications hand-carried by mechanisms that will be put in place to be obtained electronically from the applicants, applicant couriers, or by maintain quality control over the ASPE world Wide Web site: http:// other representatives of the applicant project. The application will be judged aspe.hhs.gov/funding.htm. Applications shall be considered as meeting an on the appropriateness and timeliness of that are not received in the format announced deadline if they are received the work schedule and tasks, staff described above and/or exceed the page on or before the deadline date, between assignments, and quality assurance limit, will not be reviewed. Applicants the hours of 8 a.m. and 4:30 p.m. EST, plan. are requested to be concise. Applicants at the U.S. Department of Health and are encouraged not to attach or include Human Services, Grants Management (6) Budget Appropriateness: (10 points) bound reports or other documents. Branch National Institute of Child The application must include a Health and Human Development, U.S. narrative description and justification B. Application Submission Department of Health and Human for proposed budget line items and 1. Mailed applications postmarked Services, 6100 Executive Boulevard, demonstrate that the project’s costs are after the closing date will be classified Room 8A01 Bethesda Maryland 20892– adequate, reasonable and necessary for as late. 7510 (Regular Mail), Rockville Maryland the activities or personnel to be 2. Deadline. The closing (deadline) 20852 (Express Mail) ) The address must supported. The budget and narrative date for submission of applications appear on the envelope/package should have a clear relationship to the under Track 1 is July 23, 2002, and containing the application with the note approach. The budget must include 2 under Track 2 is July 23, 2002. Please ‘‘Attention: ( Michael J. Loewe, Deputy trips to Washington, DC. The e-mail Brenda Benesch at Grants Management Officer ‘‘

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(Applicants are cautioned that express/ 2. Budget Information—Non- of an additional 2 years of funding at a overnight mail services do not always construction Programs (Standard Form lower level) and applications under deliver as agreed.) 424A); Track 2 will be for a period of 17 An application sent via the U.S. 3. Assurances—Non-construction months. Programs (Standard From 424B); Postal Service will be considered as 2. Which Agency May Submit the 4. Table of Contents; having met the deadline if it is Application Under This 5. Budget Justification for Section B postmarked before midnight three days Announcement? prior to July 23, 2002, and received in Budget Categories; time to be considered during the 6. Proof of Non-profit Status, if Any state agency may apply. competitive review process (within two appropriate; However, refer to Section I, part C, weeks of the deadline). 7. Copy of the applicant’s Approved regarding the purpose of the program. Applications transmitted by fax or Indirect Cost Rate Agreement, if ASPE expects that the project will be through other electronic means will not necessary; conducted in a defined geographic area be accepted regardless of date or time of 8. Project Narrative Statement, (e.g., county, city, selected districts, or submission or receipt. organized in six sections, addressing the the state). 3. Late applications. Applications that following topics (b through e are limited As indicated in the announcement, do not meet the criteria above are to twenty (20) single-spaced pages for the state can propose more than one considered late applications. NICHD Track 1 and ten (10) pages single-spaced project and can apply under either shall notify each late applicant that its pages for Track 2): Track 1 or 2, or under both tracks (for application will not be considered in (a) Abstract (must include assurance different projects). the current competition. of willingness to participate in a process 3. How Much Money is Available Per 4. Extension of deadlines. NICHD may evaluation), Applicant Under This Announcement? extend an application deadline when (b) Goals, Objectives and Usefulness Track 1: ASPE anticipates that awards circumstances such as acts of God of the Project, under Track 1 may be up to $500,000 (floods, hurricanes, etc.) occur, or when (c) Methodology and Design, per year. there are widespread disruptions of the (d) Background of the Personnel and Track 2: ASPE anticipates that awards mail service, or in other rare cases. Organizational Capabilities, under Track 2 may be up to $50,000 for Determinations to extend or waive (e) Work plan (timetable), and the 17-month period. deadline requirements rest with Michael (f) Budget narrative. J. Loewe , Deputy Grants Management 9. Any appendices or attachments; 4. How Many Awards Will Be Made or Officer, Grants Management Branch, 10. Certification Regarding Drug-Free How Many Applications Will Be National Institute of Child Health and Workplace; Approved? Human Development. 11. Certification Regarding Debarment, Suspension, or other Track 1: ASPE anticipates awarding C. Disposition of Applications Responsibility Matters; 4–6 grants under Track 1. Track 2: ASPE anticipates awarding 1. Approval, disapproval, or deferral. 12. Certification and, if necessary, Disclosure Regarding Lobbying; up to 20 grants under Track 2, under On the basis of the review of the this announcement. application, the Assistant Secretary will 13. Supplement to Section II—Key either (a) approve the application as a Personnel; 5. May a State Submit More Than One whole or in part; (b) disapprove the 14. Application for Federal Assistance Application (e.g., Under Either Track 1 application; or (c) defer action on the Checklist. or 2 or Submit Applications Under Each application for such reasons as lack of Standard forms are available from Track)? funds or a need for further review. Brenda Benesch or may be obtained electronically from the ASPE World Yes. If the state agency wishes to 2. Notification of disposition. The propose and apply to have more than Assistant Secretary for Planning and Wide Web site: http://aspe.hhs.gov/ funding.htm one project awarded under either Track Evaluation will notify the applicants of 1 or 2, they should submit an the disposition of their applications. If Part V. Questions and Answers application for each proposed project. approved, a signed notification of the Sufficient budget detail must be award will be sent to the business office 1. Should We Apply Under Track 1 or Track 2? provided to allow ASPE to determine named in the ASPE checklist. the costs associated with each project 3. The Assistant Secretary’s There are two ‘‘tracks’’ under this proposed. Discretion. Nothing in this announcement. Track 1 applicants are If the state agency wishes to submit announcement should be construed as expected to be those state agencies that applications under both Track 1 and to obligate the Assistant Secretary for are ready to implement proposed Track 2 for different projects, separate Planning and Evaluation to make any innovations or expand existing applications for each track must be awards whatsoever. Awards and the innovative strategies. Track 1 applicants submitted. (Note: there are different distribution of awards among the likely will have innovative strategies submission deadlines for each track). priority areas are contingent on the developed and most or all aspects of the needs of the Department at any point in programs or services will have been 6. Can More Than One Agency From a time and the quality of the applications piloted, if not fully implemented. Track State Apply? that are received. 2 applicants are expected to be those Yes. state agencies that have innovative D. Components of a Complete ideas, but need time for further planning 7. Are There Page Limits or Other Page Application to fully develop or finalize operational Guidelines for the Narrative Section of A complete application consists of the plans. the Application? following items in this order: ASPE expects that approved Yes, there are page limits for the 1. Application for Federal Assistance applications under Track 1 will be for applications. Applicants are requested (Standard Form 424); a period of 1 year (with the possibility to be concise. The announcement

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indicates that applications are not 12. Where Can Additional Copies of the Department of Housing and Urban expected to be lengthy (see Part III, Announcement and/or Forms Be Development has a grants program Section C). Track 1 applications must be Obtained? specifically for conversion of Section 202 no longer than 20 pages, and Track 2 housing to assisted living, and HUD is The complete package, announcement interested in working with State Medicaid applications must be no longer than 10 and standard forms, are available on the agencies. States may choose to apply for a pages, excluding required forms, ASPE Web site at: http://aspe.hhs.gov/ State Innovation Grant to do some certificates, etc. Applications must be funding.htm or by calling Michael preliminary interagency planning to come up typed in 12 point font size, with single Loewe at (301) 435–6995. with new approaches that will enable them line spacing, and 1 inch top, bottom, to access HUD funds for 202 conversions to right, and left margins. Applications Part VI: Appendix ALFs. that exceed the page limits and other Examples of Activities for State Innovation State Data Enhancements guidelines will not be considered. Grants • States could enhance their data 8. Where Should Applications Be Sent? The following are intended as examples management systems to integrate or link that States may pursue through innovation administrative data across a range of An original and two copies of the grants. Although we have grouped the programs that serve similarly situated complete application should be sent: to examples into subcategories, several of them families; expand eligibility screening describe cross-cutting issues. States are processes; application of Geographic Michael J. Loewe, Deputy Grants Information System (GIS) techniques for Management Officer, Grants encouraged to submit ideas of their choosing, and are not required to use one of the ideas program planning and operations; or expand Management Branch, National Institute suggested below. use of new technologies, such as Personal of Child Health and Human Digital Assistants. Development, U.S. Department of Access to Health Care and/or Human • States and providers often face Health and Human Services, 6100 Services and Benefits burdensome, duplicative, inconsistent data Executive Boulevard, Room 8A01, • Many states are interested in expanding collection and reporting requirements in Bethesda, Maryland 20892–7510 access to private health insurance for low- their health and long-term care systems. income workers. Funds from state innovation States may elect to use a State Innovation (Regular Mail), Rockville, Maryland grants could be used for the design or Grant to work on the development of an 20852 (Express Mail) , Phone: (301) infrastructure development of programs such electronic health information system that 435–6995. as the following: will support effective clinical management of • Premium assistance programs for low- patients; improve quality of care; enhance, 9. What Is the Application Submission income workers who cannot afford to expand, and support the role of patients in Deadline? purchase insurance offered by their health care decision making; and reduce employers—states could subsidize premiums regulatory burden imposed on providers. For Track 1: applications must be or other cost-sharing requirements for received or postmarked by July 23, workers deemed eligible; Comprehensive Support Services for 2002. • A private insurance product for small Children and Families • For Track 2: applications must be employers who do not now offer insurance Many states are developing a coverage to their employees—states could comprehensive set of early childhood received or postmarked by July 23, target certain employers for this type of services and family support programs to 2002. insurance, including daycare and long-term promote school-readiness in all young 10. What Is the Deadline for care providers and other service-oriented children. To support high-risk families, businesses. working families, and children with special Applications Sent Via Overnight Courier • States could adopt a number of strategies needs, states could integrate federal support Services? to address lack of access to dental care and systems that address different facets of early affordable dental insurance, which is childhood (i.e., Medicaid, SCHIP, mental Applications that are hand-carried particularly a problem among the poor, racial health, child care, Head Start and Early Head will be considered as meeting the and ethnic minorities, and people living in Start, etc.); or link key services that address deadline if they are received on or rural areas. For example, states could form the various components of early childhood before the deadline date between the public/private partnerships to increase the development (for example, promoting hours of 8 a.m. and 4:30 p.m. EST at number of providers or the availability of reading readiness and healthy development Grants Management Branch, National dental insurance. in child care settings). • • Institute of Child Health and Human Coordination between adequate income, States are beginning to realize that there Development, U.S. Department of food, social services, and health care is is tremendous overlap between adults in the especially important in rural communities criminal justice system and the adults and Health and Human Services, 6100 and areas with high concentration of poverty children served in many of the health and Executive Boulevard, Room 8A01, where services and providers are limited. human services programs targeting low- Bethesda, Maryland 20892–7510 Although health and social welfare are income families. States could build (Regular Mail), Rockville, Maryland strongly associated with one another, connections between support programs for 20852 (Express Mail), Phone: (301) 435– Federal, State, and local planning efforts families of prisoners, prisoner/re-entry 6995, Fax: (301) 402–0915. The address continue to address primary health care, programs, and health and social service behavioral health care, and social services delivery systems. must include the designation: • ‘‘Attention: Michael Loewe’’. separately. States could use innovation grants There is growing recognition of the to improve coordination and compatibility of critical importance of primary and secondary (Applicants are cautioned that express/ services, processing requirements, eligibility, prevention of youth risk behavior through overnight mail services do not always and financial accountability. approaches and supports targeting all youth, deliver as agreed.) • Many states are interested in providing and particularly high-risk youth. States can coverage for personal care and other make a significant effort to provide program 11. May Applications Be Faxed or Sent community-based services to be provided to interventions to compensate for those that Electronically? Medicaid beneficiaries in assisted living may be missing within the current system by: facilities (ALFs). However, in order to serve involving multiple youth serving sectors to Applications transmitted by fax or Medicaid beneficiaries in ALFs, financing develop core indicators and encouraging through other electronic means will not sources must be found to pay the room and state data agencies to monitor these be accepted regardless of date or time of board components of the cost of care since indicators; providing cross-training to submission or receipt. Medicaid law prohibits such coverage. The facilitate interagency education and

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communication; or developing a state youth DEPARTMENT OF HEALTH AND the strength of scientific evidence, is coordinating council. HUMAN SERVICES essential to fulfill its commitment to • State or local agencies might partner inform all segments of the health care with employers to support low-income Agency for Healthcare Research and community. We are interested in working families by matching the employer’s Quality receiving comments on the report’s provision of paid release time to take job- related classes. Agencies could also partner overall clarity, usefulness, and Public comments on EPC Report thoroughness, and we also welcome with employers to offer lunchtime classes on ‘‘Systems to Rate the Strength of such topics as choosing a child care provider, suggestions on the type of guidance that Scientific Evidence’’ conflict resolution, or repairing bad credit. would be most helpful to researchers, policymakers, provider systems, Long-Term Care Services and Resources AGENCY: The Agency for Healthcare Research and Quality (AHRQ), HHS. professional societies, practitioners, • States interested in experimenting with patients, and others. For example, what ‘‘consumer-directed’’ approaches to home ACTION: Request for public comments. do professional societies, practitioners, and community-based long-term care SUMMARY: To inform its response to a payors, policymakers need to know services could undertake a variety of about grading scientific evidence? What innovative practices, for example: developing legislative mandate to develop and the specialized infrastructure needed for disseminate methods or systems to rate parts of the EPC report will be used in consumers to recruit and manage home care scientific evidence found in health care day-to-day health care decision making? workers directly, without having to take on research studies (see Background Is some part this information useful to the business-related tasks of issuing section, below), AHRQ commissioned patients? What are the most useful paychecks and making required tax filings; the Research Triangle Institute- format(s) for the guidance that AHRQ providing consumer-directed service options University of North Carolina Evidence- should use for its dissemination strategy within managed care structures; providing based Practice Center (RTI/UNC EPC) to with particular audiences or users? options for particular constituencies, such as undertake a study on systems to rate the DATES: For particular audiences or uses, elders with Alzheimer’s disease and their or explanation of particular rating families; or growing small pilot programs to quality of scientific evidence. The goals scale and adapting those originally funded of the EPC study were to describe systems to be considered for with state revenues to conform to Medicaid systems to rate the strength of scientific incorporation and discussion in the requirements. evidence, including evaluating the guidance AHRQ will provide in the near • States could develop campaigns to make quality of individual articles that make future in accordance with its legislative residents aware of their risk for long-term up a body of evidence on a specific mandate, written comments must be care and their options for planning ahead, scientific question in health care, and to received by August 22, 2002. Comments including purchasing private long-term care provide some guidance as to current should be sent to Jacqueline Besteman insurance. States could use their existing ‘‘best practices’’ with respect to rating (e-mail attached file preferred), at aging infrastructure to ensure that persons scientific evidence regrading a [email protected]; or faxed to 301– nearing retirement age are offered the 594–4027. resources and assistance necessary for particular clinical treatment or successful planning, or they could use the technology. FOR FURTHER INFORMATION CONTACT: grant resources to investigate the best and The RTI/UNC EPC completed their Jacqueline Besteman, J.D., M.A., most cost-effective mechanisms for educating study and submitted to AHRQ the report Director, EPC Program, Center for citizens so that future resources will be well ‘‘Systems to Rate the Strength of Practice and Technology Assessment targeted. Scientific Evidence’’. The report AHRQ, 6010 executive Blvd., Suite 300, • Allegations of poor quality, abuse, and includes the EPC’s methodological Rockville, MD 20852; Phone: (301) 594– neglect in nursing homes are giving rise to an approach (e.g., search strategy, data 4017; Fax: (301) 594–4027; e-mail: increasing number of private lawsuits and, as collection, analysis of findings) and [email protected]. a result, liability insurance premiums for facilities in a number of states have gone sky discusses identification of systems, SUPPLEMENTARY INFORMATION: factors important in developing and high. States may choose to apply for state Background innovation grants to develop working using rating systems, and a ‘‘best partnerships with private liability insurers to practices’’ orientation to selecting AHRQ is the lead Federal agency for identify ‘‘best practices’’ for nursing homes systems for use. The report also enhancing the quality, appropriateness, that, if adopted by facilities, can be linked to includes recommendations for future and effectiveness of healthcare services liability premium discounts. research. and access to such services. In carrying • States, providers, consumers and others The comprehensive report ‘‘Systems out this mission, AHRQ conducts and are increasingly struggling with a serious to Rate the strength of Scientific funds research that develops and crisis in recruiting and retaining a quality, committed workforce to provide long-term Evidence, is available on AHRQ’s web presents evidence-based information on care services in institutional and home and page at http://www.ahrq.gov/clinic/ healthcare outcomes, quality, cost, use community-based settings. States may opt to evrptfiles.htm#strength’’. The report and access. Included in AHRQ’s use state innovation funds to develop and also is available, without charge, from legislative mandate is support of implement programs to address the shortage. the AHRQ Clearinghouse by calling syntheses of scientific clinical and For example, states could experiment with 800–358–9295. behavioral studies on particular providing new training programs, There are a variety of audiences for treatments and technologies, and wide- establishing alternative approaches to the guidance that the Agency will spread dissemination of the resultant management and supervision, improving disseminate on this subject, who we evidence reports and technology benefits for direct care workers, or creating career ladders. hope will be interested in evaluating the assessments. The mandate includes usefulness of this EPC report for their dissemination of guidance on methods Dated: May 15, 2002. purposes and who will also describe the or systems for rating the strength of William F. Raub, type of guidance that would be most scientific evidence. These research Principal Deputy Secretary for Planning and helpful to them. Obtaining comment on findings, syntheses, and guidance are Evaluation. how the AHRQ can best fulfill its intended to assist providers, clinicians, [FR Doc. 02–13034 Filed 5–23–02; 8:45 am] legislative mandate to identify and payers, patients, and policymakers in BILLING CODE 4120–01–P disseminate guidance on systems to rate making evidence-based decisions

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regarding the quality and effectiveness Paperwork Reduction Act of 1995 for (OMB. No. 0920–0449)—Extension— of health care. opportunity for public comment on CDC and ATSDR proposes to continue Section 911(a), part B, Title IX, proposed data collection projects, the to conduct consumer satisfaction Healthcare Research and Quality Act of Centers for Disease Control and research around its Internet site in order 1999, requires in part that AHRQ, in Prevention (CDC) will publish periodic to determine whether the information, collaboration with experts from the summaries of proposed projects. To services, and materials on this web site public and private sectors, identify request more information on the are presented in an appropriate methods or systems to assess health care proposed projects or to obtain a copy of technological format and whether it research results, particularly ‘‘methods the data collection plans and or systems to rate the strength of the meets the needs, wants, and preferences instruments, call the CDC Reports of visitors or ‘‘customers’’ to the Internet scientific evidence underlying health Clearance Officer on (404) 498–1210. care practice, recommendations in the Comments are invited on: (a) Whether site. The re-authorized survey will be research literature, and technology the proposed collection of information conducted over the next three years and assessments.’’ The Agency is to make is necessary for the proper performance survey results will be analyzed and methods or systems for rating evidence, of the functions of the agency, including interpreted semiannually. Customers on widely available. To inform its response whether the information shall have the web site will only be asked to to this mandate, AHRQ invites public practical utility; (b) the accuracy of the respond once. comments on the RTI/UNC EPC study agency’s estimate of the burden of the Information on the site focuses on noted above. proposed collection of information; (c) disease prevention, health promotion, Dated: May 17, 2002. ways to enhance the quality, utility, and and epidemiology. The site is designed Carolyn M. Clancy, clarity of the information to be to serve the general public, persons at collected; and (d) ways to minimize the Acting Director. risk for disease, injury, and illness, and burden of the collection of information [FR Doc. 02–13152 Filed 5–23–02; 8:45 am] health professionals. This research will on respondents, including through the ensure that these audiences have the BILLING CODE 4160–90–M use of automated collection techniques opportunity to provide ‘‘customer or other forms of information feedback’’ regarding the value and technology. Send comments to Anne DEPARTMENT OF HEALTH AND effectiveness of the information, HUMAN SERVICES O’Connor, CDC Assistant Reports Clearance Officer, 1600 Clifton Road, services, and products of the CDC and ATSDR Web site and whether these Centers for Disease Control and MS–D24, Atlanta, GA 30333. Written materials are easy to access, clear and Prevention comments should be received within 60 days of this notice. informative. There are no costs to [60Day–02–56] respondents. Proposed Project Proposed Data Collections Submitted Evaluation of Customer Satisfaction of for Public Comment and the Centers for Disease Control and Recommendations Prevention (CDC) and Agency for Toxic In compliance with the requirement Substances and Disease Registry of section 3506(c)(2)(A) of the (ATSDR) Internet Home Page and Links

Number of re- Average bur- Respondents Number of re- sponses/re- den/response Total burden spondents spondent (in hours) (in hours)

Visitors to CDC Internet Site ...... 13,000 1 10/60 2,166

Total ...... 2,166

Dated: May 17, 2002. 92–463) of October 6, 1972, that the management activities, for both the John Moore, National Task Force on Fetal Alcohol Centers for Disease Control and Acting Associate Director for Policy, Planning Syndrome and Fetal Alcohol Effect, Prevention and the Agency for Toxic and Evaluation, Centers for Disease Control Centers for Disease Control and Substances and Disease Registry. and Prevention. Prevention of the Department of Health Dated: May 17, 2002. [FR Doc. 02–13040 Filed 5–23–02; 8:45 am] and Human Services, has been renewed John Burckhardt, BILLING CODE 4163–18–P for a 2-year period extending through May 17 2004. Acting Director, Management Analysis and For further information, contact Dixie Services Office, Centers for Disease Control DEPARTMENT OF HEALTH AND E. Snider, Jr., M.D., Acting Executive and Prevention. HUMAN SERVICES Secretary, National Task Force on Fetal [FR Doc. 02–13071 Filed 5–23–02; 8:45 am] Alcohol Syndrome and Fetal Alcohol BILLING CODE 4163–18–P Centers for Disease Control and Effect, 1600 Clifton Road, NE, m/s D–50, Prevention Atlanta, Georgia 30333. Telephone 404/ 639–7240, or fax 404/639–7341. National Task Force on Fetal Alcohol The Director, Management Analysis Syndrome and Fetal Alcohol Effect: and Services Office, has been delegated Notice of Charter Renewal the authority to sign Federal Register This gives notice under the Federal notices pertaining to announcements of Advisory Committee Act (Public Law meetings and other committee

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DEPARTMENT OF HEALTH AND the Republic of Palau, and federally cultural context. Intervention strategies HUMAN SERVICES recognized Indian tribal governments, should be sufficiently brief and of a Indian tribes, or Indian tribal technical level that would facilitate Centers for Disease Control and organizations. rapid dissemination among community- Prevention based organizations. Approximately Note: Title 2 of United States Code Section one-third of the men should identify as [Program Announcement 02136] 1611 states that an organization described in section 501(c)(4) of the Internal Revenue African American, one-third as Reducing Sexual Risk for HIV Code of 1986 that engages in lobbying Hispanic/Latino and one-third as Transmission in Substance-Using Men activities is not eligible to receive Federal Caucasian at each study site. Men who Who Have Sex With Men; Notice of funds constituting an award, grant or loan. are recruited into the study must Availability of Funds currently use drugs and/or alcohol at a C. Availability of Funds heavy level and have been sexually A. Purpose Approximately $1,200,000 is expected active within the past three months. The Centers for Disease Control and to be available in FY 2002 to fund up Men recruited into the study can be Prevention (CDC) announces the to four awards for the first year of poly-drug users (including alcohol), but without current intravenous drug use. availability of fiscal year (FY) 2002 project activities. It is expected that the Men can be recruited from a variety of funds for a cooperative agreement average award will be approximately venues, including drug using venues, program to support research on $300,000 in the first year to support bars, public sex environments known interventions to reduce sexual risk for development of an intervention in also to be sites for drug/alcohol use as HIV transmission in substance-using additional years and will begin on or well as substance abuse treatment men who have sex with men (MSM). before September 30, 2002. The award organizations. The design of the study This program addresses the ‘‘Healthy will be made for a 12-month budget should include an attention control People 2010’’ focus HIV. period, within a project period of up to strategy, so that men randomized to the The purpose of the research is to five years. Funding estimates are control condition are invited to develop and test behavioral expected to increase once recruitment and intervention activities begin. equivalent time spent in groups that interventions that focus on reducing risk focus on an issue of interest to this for HIV transmission by altering the Continuation awards within an approved project period will be made population. sexual risk behavior of substance using Applicants should develop (1) and abusing MSM. Under this program, on the basis of satisfactory progress as evidenced by required reports, sampling and recruitment strategies that the primary outcome of the project will ensure that the study includes a be the development of effective satisfactory participant accrual, and the availability of funds. The Catalog of demographically diverse group of MSM, interventions for substance-using MSM (2) culturally-sensitive measures of which may then be adapted and Federal Domestic Assistance number is 93.943. antecedent and outcome variables, replicated by community-based HIV including both quantitative and prevention and substance abuse Funding Preference qualitative assessments, (3) an agencies among sub-populations of Funding decisions will attempt to intervention plan that relates directly to substance-using MSM throughout the achieve regional diversity of the four an identified theoretical model of sexual U.S. This announcement addresses sites (e.g., Northeast, South, Central, risk reduction, (4) a core set of measures goals of CDC’s HIV Prevention Strategic West). Funding decisions will also take that will facilitate assessment of Plan. into consideration geographical substance use and sexual risk behavior, Measurable outcomes of the program locations that afford sufficient numbers (5) a sampling plan that will will be in alignment with one or more of men from which to sample. successfully recruit and retain a large of the following performance goals for number of research participants whose the National Center for HIV, STD & TB D. Program Requirements substance use is associated with high Prevention. Through the In conducting activities to achieve the risk sexual behavior at some level, and implementation of HIV prevention purpose of these programs, the recipient (6) stringent safeguards for protecting programs, reduce the number of cases of will be responsible for the activities confidentiality of participants. HIV infection and AIDS: 1. acquired listed under Recipient Activities, and Applicants must develop protocols heterosexually, 2. related to injecting CDC will be responsible for conducting and assessment instruments that will drug use, 3. associated with male-to- activities listed under CDC Activities: increase understanding of a broad array male homosexual contact, and 4. of sociocultural, structural, acquired perinatally. 1. Recipient Activities psychological, and behavioral factors as The program will support four sites to they relate to HIV infection risk in B. Eligible Applicants work collaboratively with each other substance-using MSM. These factors Applications may be submitted by and with Federal investigators in must be addressed in the design of public and private nonprofit conducting an intervention study to intervention activities, so that the forces organizations and by governments and reduce sexual risk-taking among that are promoting high risk sexual their agencies; that is, universities, substance abusing MSM. At each site, it activity within these populations are colleges, research institutions, hospitals, is expected that grantees will newly addressed in the intervention. Clear other public and private nonprofit enroll a minimum of 375 men, hypotheses should be developed to test organizations, faith-based organizations, including non-injection drug and other how these variables—and drug and State and local governments or their substance-using (including alcohol) gay alcohol use themselves—mediate or bona fide agents, including the District identified and non-gay identified MSM. moderate target risk behaviors. After of Columbia, the Commonwealth of The interventions to be tested should sites are funded, but before research Puerto Rico, the Virgin Islands, the be theory-based, group-level activities begin, grantees and Federal Commonwealth of Samoa, Guam, the interventions appropriate for use among investigators will work collaboratively Federated States of Micronesia, the a culturally-diverse population of MSM to refine the protocols so that they fit Republic of the Marshall Islands, and who reside within a challenging socio- together across sites and address

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behavioral intervention research issues c. Assist as needed in designing a data Each application will be evaluated in a scientifically rigorous manner. management system. individually against the following Collaborate with other Federally d. Assist as needed in performance of criteria by an independent review group sponsored researchers, including selected laboratory tests. appointed by CDC. Applications will be developing and using common data e. Work collaboratively with ranked on a scale of 100 maximum collection instruments and data investigators to help facilitate research points. Applications will be reviewed management procedures, as determined activities across sites involved in the and evaluated based on the evidence in post-award grantee planning same research project. submitted and the applicant’s abilities conferences. f. Analyze data and present findings to meet the following criteria: Recipients will be required to pool at meetings and in publications. 1. Familiarity With and Access to the data for analysis and publication, but E. Application Content can also conduct independent site- Study Population (25 points) specific analyses, as agreed to by the Use the information in the Program a. Extent of the applicant’s knowledge multi-site study group. Recipients are Requirements, Other Requirements, and of issues faced by study population, also required to work collaboratively as Evaluation Criteria sections to develop including substance use and sexual risk a study group to: your application. Your application will behaviors, access to the study a. Attend meeting(s) at CDC to be scored based on the criteria listed in population and experience in working develop collaborative research protocol. the Evaluation Criteria, so it is with the population. important to follow them in laying out b. Develop the research study b. Existence of linkages to facilitate your program plan. The narrative protocols and standardized data recruitment from and referral to should be no more than 20 double- collection forms across sites, including community-based programs providing spaced pages, printed on one side with standardized measures of drug and services for the study population, one inch margins in a 12-point font or alcohol use and high risk sexual including letters of support given in an greater. Follow the directions for behaviors. appendix. completing the application that are c. Prepare an IRB protocol for c. Feasibility of plans to involve the found in the Public Health Service approval at the local and CDC levels. study population, their advocates, or (PHS) 398 kit. d. Identify, recruit, obtain informed service providers in the development of consent from, and newly enroll an F. Submission and Deadline research activities and to inform them of adequate number of study participants research results. as determined by the study protocols Submit the original and two copies of PHS–398 (OMB Number 0925–0001) d. Feasibility of plans for recruitment and the program requirements. and outreach to new study participants e. Follow study participants as (adhere to the instructions on the Errata Instruction Sheet for PHS 398). Forms (e.g. not men currently enrolled in an determined by the study protocols. ongoing study). f. Develop the intervention and are in the application kit and at the intervention procedures in collaboration following Internet address: 2. Description and Justification of an with the other funded investigators and www.cdc.gov/od/pgo/forminfo.htm. Intervention and Research Plan (40 implement the intervention as defined On or before July 31, 2002 submit the points) in study protocols. application to: Technical Information Management a. Quality of the review of the g. Establish procedures to maintain Section, PA #02136, Procurement and scientific literature pertinent to the the rights and confidentiality of all Grants Office, Centers for Disease proposed study, including the study participants. theoretical basis for the investigation h. Perform laboratory tests (when Control and Prevention (CDC), 2920 and relevance of research questions. appropriate) and data analysis as Brandywine Road, Room 3000, Atlanta, b. The originality of the research, determined in the study protocols. GA 30341–4146. Deadline: Applications shall be including the extent to which it i. Collaborate and share data (when considered as meeting the deadline if addresses important gaps in knowledge appropriate) with other collaborators to they are: and has strong relevance for guiding answer specific research questions. Received on or before the deadline j. Conduct data analysis with all behavioral interventions. date. c. Applicant’s understanding of the collaborators. Late Applications: Applications k. Present and publish research research objectives as evidenced by the which do not meet the criteria above findings. quality of the proposed research plan, will be returned to the applicant. l. Participate in conference calls with specific study design and the choice of all collaborators. G. Evaluation Criteria the theory to guide the intervention m. Attend scheduled meetings with activities as well as the quality of the Application other funded grantees. plan to operationalize intervention Applicants are required to provide activities. 2. CDC Activities Measures of Effectiveness that will d. Feasibility of plan to sample, a. Provide technical assistance as demonstrate the accomplishment of the recruit, obtain informed consent and needed in intervention development various identified objectives of the grant newly enroll 375 study participants in and in the design and conduct of or cooperative agreement. Measures of a culturally and linguistically research. Effectiveness must relate to the appropriate manner. This includes b. Assist in the development of a performance goal (or goals) as stated in plans for achieving a demographically research protocol for Institutional section ‘‘A. Purpose’’ of this diverse sample within the African- Review Board (IRB) review by all announcement. Measures must be American and Hispanic populations, cooperating institutions participating in objective and quantitative and must conducting multi-venue sampling. the research project. The CDC IRB will measure the intended outcome. These e. Feasibility of plan for collecting review and approve the protocol Measures of Effectiveness shall be both quantitative and qualitative initially and on at least an annual basis submitted with the application and formative research data and to follow until the research project is completed. shall be an element of evaluation. research participants over time.

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f. Comprehensiveness of the plan to 4. Staffing, Facilities, and Time-Line (15 AR–11 Healthy People 2010 protect the rights and confidentiality of points) AR–12 Lobbying Restrictions all participants. a. Availability of qualified personnel AR–22 Research Integrity g. Thoroughness of statistical analysis with realistic and sufficient percentage- plans, including data cleaning, I. Authority and Catalog of Federal time commitments (including an Domestic Assistance Number management, and substantive analyses, estimated staffing plan for years in and plans for timely provision of data which intervention activities will This program is authorized under for pooled analyses. occur); clarity of the described duties sections 301(a) and 317 (k)(2)of the h. Extent to which study proposal and responsibilities of project personnel Public Health Service Act, [42 U.S.C. demonstrates agreement to comply with including clear lines of authority and section 241(a) and 247b(k)(2)], as multi-site research requirements (e.g., supervisory capacity over the amended. The Catalog of Federal common protocol, data collection, and behavioral, epidemiologic, clinical, Domestic Assistance number is 93.943. computer and data management administrative, data management, and systems). J. Where to Obtain Additional statistical aspects of the research. Information i. The degree to which the applicant b. Adequacy of the facilities, has met the HHS Policy requirements equipment, data processing and analysis This and other CDC announcements regarding the inclusion of ethnic and capacity, and systems for management can be found on the CDC home page racial groups in the proposed research. of data security and participant Internet address—http://www.cdc.gov This includes: (1) the proposed plan for confidentiality. Click ‘‘Funding’’ then ‘‘Grants and the inclusion of racial and ethnic c. Adequacy of base staff to keep pace Cooperative Agreements.’’ minority populations for appropriate with anticipated workload. If you have questions after reviewing representation; (2) the proposed d. Adequacy of time-line for the contents of all the documents, justification when representation is conducting the research. business management technical limited or absent; (3) a statement as to assistance may be obtained from: 5. Other (not scored) whether the design of the study is Lynn Mercer, Grants Management adequate to measure differences when a. Budget: The extent to which it is Officer, Grants Management Branch, warranted; reasonable, clearly justified, consistent Procurement and Grants Office, j. Provide a statement as to whether with the intended use of funds, and Announcement #02136, Centers for the plans for recruitment and outreach allowable. All budget categories should Disease Control and Prevention (CDC), for study participants include the be itemized. 2920 Brandywine Rd. Room 3000, process of establishing partnerships b. Human Subjects: The application Mailstop E–15, Atlanta, GA 30341, with communities and recognition of adequately address the requirements of Telephone: (770) 488–2810, E-mail mutual benefits. Title 45 CFR Part 46 for the protection address: [email protected]. k. Provide general time line for of human subjects. For program technical assistance, conducting the research and a detailed contact: Craig Studer, Deputy Chief, time line for the first year of the study, H. Other Requirements Behavioral Intervention Research including measurable process objectives Technical Reporting Requirements Branch, Division of HIV/AIDS for the first year of the study. Provide CDC with original plus two Prevention—IRS, National Center for 3. Demonstration of Staff’s Capability to copies of HIV, STD, TB Prevention ,Centers for Conduct Research (20 points) 1. annual progress reports; Disease Control and Prevention (CDC), 2. financial status report, no more a. Applicant’s ability to carry out the 1600 Clifton Road, NE., Mailstop E–37, than 90 days after the end of the budget proposed research as demonstrated by Atlanta, Georgia 30333, Telephone: period; and the training, experience, and expertise (404) 639–1900, E-mail address: 3. final financial status and [email protected]. of the principal investigator and the performance reports, no more than 90 proposed research team and days after the end of the project period. Dated: May 20, 2002. organizational setting, including Send all reports to the Grants Edward J. Schultz, demonstration of ability to collect, Management Specialist identified in Acting Director, Procurement and Grants manage, and analyze accurate data in a section J (‘‘Where to Obtain Additional Office, Centers for Disease Control and timely manner. Information’’) of this document. Prevention (CDC). b. Evidence of plan for establishing a The following additional [FR Doc. 02–13075 Filed 5–23–02; 8:45 am] partnership with at least one requirements are applicable to this BILLING CODE 4163–18–P community based organization to link program. For a complete description of participants with prevention and each, see Attachment 1 in the medical services as needed, and to application kit. DEPARTMENT OF HEALTH AND consult on study procedures as needed. AR–1 Human Subjects Requirements HUMAN SERVICES c. Demonstration of epidemiologic, AR–2 Requirements for Inclusion of behavioral intervention, clinical, Women and Racial and Ethnic Centers for Disease Control and administrative, and management Minorities in Research Prevention expertise needed to conduct the AR–4 HIV/AIDS Confidentiality Mine Safety and Health Research proposed research. Provisions d. Demonstration that principal AR–5 HIV Program Review Panel Advisory Committee Meeting: investigator and staff have experience Requirements Cancelled. working with the targeted population of AR–6 Patient Care study participants. AR–7 Executive Order 12372 Review NAME: Mine Safety and Health Research e. Demonstration that investigative AR–9 Paperwork Reduction Act Advisory Committee (MSHRAC) team includes a staff member with Requirements Meeting—Cancelled. expertise in qualitative formative data AR–10 Smoke-Free Workplace TIME AND DATE: 11 a.m.–2 p.m., May 22, analysis. Requirements 2002.

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PLACE: Teleconference call will illnesses, as well as to support more focused participate in the Medicare or Medicaid originate at the Centers for Disease research projects, which will lead to programs. The Social Security Act Control and Prevention, National improvements in the delivery of occupational requires that the Secretary publish a Institutes for Occupational Safety and safety and health services and the prevention notice identifying the national of work-related injury and illness. It is Health, Atlanta, Georgia. Please see anticipated that research funded will accreditation body making the request, SUPPLEMENTARY INFORMATION for details promote these program goals. describing the nature of the request, and on accessing the teleconference. Matters to be Discussed: The meeting will providing at least a 30-day public STATUS: Meeting cancelled. Published in convene in open session from 8:30–9:30 a.m. comment period. the Federal Register: April 17, 2002, on June 27, 2002, to address matters related DATES: We will consider comments if Volume 67, Number 74, page 18911. to the conduct of Study Section business. we receive them at the appropriate The remainder of the meeting will proceed in FOR FURTHER INFORMATION CONTACT: Dr. address, as provided below, no later closed session. The purpose of the closed than 5 p.m. on June 24, 2002. Lewis Wade, Executive Secretary, sessions is for the SOHSS to consider safety MSHRAC, NIOSH, CDC, HHHB HHH and occupational health-related grant ADDRESSES: In commenting, please refer 715H, P12, Washington, DC 20201– applications. These portions of the meeting to file code CMS–2141–PN. Because of 0004, telephone 202/401–2192. will be closed to the public in accordance staff and resource limitations, we cannot The Director, Management Analysis with provisions set forth in section 552b(c)(4) accept comments by facsimile (FAX) and Services Office, has been delegated and (6) title 5 U.S.C., and the Determination transmission. Mail written comments the authority to sign Federal Register of the Acting Director, Management Analysis (one original and three copies) to the notices pertaining to announcements of and Services Office, Centers for Disease following address ONLY: Centers for meetings and other committee Control and Prevention, pursuant to Pub. L. Medicare & Medicaid Services, management activities for both the 92–463. Agenda items are subject to change as Department of Health and Human Centers for Disease Control and priorities dictate. Services, Attention: CMS–2141–N, P.O. Prevention and the Agency for Toxic Contact Person for More Information: Box 8013, Baltimore, MD 21244–8013. Substances and Disease Registry. Charles N. Rafferty, Ph.D., NIOSH Scientific Please allow sufficient time for mailed Dated: May 20, 2002. Review Administrator, 6701 Rockledge Drive, comments to be timely received in the Room 4114, MSC 7816, Bethesda, Maryland John C. Burckhardt, event of delivery delays. 20892, telephone 301/435–3562, fax 301/ If you prefer, you may deliver (by Acting Director, Management Analysis and 480–2644. hand or courier) your written comments Services Office, Centers for Disease Control The Director, Management Analysis and and Prevention. (one original and three copies) to one of Services Office, has been delegated the the following addresses: Room 443–G, [FR Doc. 02–13073 Filed 5–23–02; 8:45 am] authority to sign Federal Register notices Hubert H. Humphrey Building, 200 BILLING CODE 4163–19–P pertaining to announcements of meetings and other committee management activities for Independence Avenue, SW., both the Centers for Disease Control and Washington, DC 20201, or Room C5–14– DEPARTMENT OF HEALTH AND Prevention and the Agency for Toxic 03, 7500 Security Boulevard, Baltimore, HUMAN SERVICES Substances and Disease Registry. MD 21244–1850. Dated: May 17, 2002. Comments mailed to the addresses indicated as appropriate for hand or Centers for Disease Control and John Burckhardt, Prevention courier delivery may be delayed and Acting Director, Management Analysis and could be considered late. Meetings Services Office, Centers for Disease Control and Prevention. For information on viewing public comments, see the beginning of the In accordance with section 10(a)(2) of [FR Doc. 02–13072 Filed 5–23–02; 8:45 am] SUPPLEMENTARY INFORMATION section. the Federal Advisory Committee Act BILLING CODE 4163–19–P (Pub. L. 92–463), the Centers for Disease FOR FURTHER INFORMATION CONTACT: Control and Prevention (CDC) Laura A. Weber, (410) 786–0227. announces the following committee DEPARTMENT OF HEALTH AND SUPPLEMENTARY INFORMATION: Inspection meeting: HUMAN SERVICES of Public Comments: Comments received timely will be available for Name: Safety and Occupational Health Centers for Medicare & Medicaid Study Section (SOHSS), National Institute for public inspection as they are received, Occupational Safety and Health (NIOSH). Services generally beginning approximately 3 Times and Dates: 8:30 a.m.–5:30 p.m., June [CMS–2141–PN] weeks after publication of a document, 27, 2002. 8 a.m.—5 p.m., June 28, 2002. at the headquarters of the Centers for Place: The Churchill Hotel, 1914 RIN 0938–ZA35 Medicare & Medicaid Services, 7500 Connecticut Avenue, NW., Washington, DC, Security Boulevard, Baltimore, telephone 202/797–2000. Medicare and Medicaid Programs; Maryland 21244, Monday through Status: Open 8:30 a.m.—9:30 a.m., June 27, Application by the American Friday of each week from 8:30 a.m. to 2002. Closed 9:30 a.m.—5:30 p.m., June 27, Osteopathic Association (AOA) for 2002. Closed 8 a.m.—5 p.m., June 28, 2002. 4 p.m. To schedule an appointment to Approval of Deeming Authority for view public comments, phone (410) Purpose: The Safety and Occupational Ambulatory Surgical Centers (ASCs) Health Study Section will review, discuss, 786–7197. and evaluate grant application(s) received in AGENCY: Centers for Medicare & Copies: To order copies of the Federal response to the Institute’s standard grants Medicaid Services, HHS. Register containing this document, send review and funding cycles pertaining to ACTION: Proposed notice. your request to: New Orders, research issues in occupational safety and Superintendent of Documents, P.O. Box health, and allied areas. It is the intent of the SUMMARY: This proposed notice 371954, Pittsburgh, PA 15250–7954. NIOSH to support broad-based research announces the receipt of an application Specify the date of the issue requested endeavors in keeping with the Institute’s program goals. This will lead to improved from the American Osteopathic and enclose a check or money order understanding and appreciation for the Association (AOA), for recognition as a payable to the Superintendent of magnitude of the aggregate health burden national accreditation program for Documents, or enclose your Visa or associated with occupational injuries and ambulatory surgical centers that wish to Master Card number and expiration

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date. Credit card orders can also be • Monitoring procedures for provider III. Ambulatory Surgical Center placed by calling the order desk at (202) entities found out of compliance with Conditions for Coverage and 512–1800 or by faxing to (202) 512– the conditions or requirements; and Requirements • 2250. The cost for each copy is $9. As Ability to provide the Secretary The regulations specifying the an alternative, you can view and with necessary data for validation. Medicare conditions for coverage for photocopy the Federal Register Section 1865(b)(3)(A) of the Act ASCs are located in 42 CFR part 416. document at most libraries designated requires that the Secretary publish a These conditions implement section as Federal Depository Libraries and at notice within 60 days of receipt of a 1832(a)(2)(F)(i) of the Act, which many other public and academic completed application; the notice provides for Medicare Part B coverage of libraries throughout the country that must— facility services furnished in connection • Identify the national accreditation receive the Federal Register. with surgical procedures specified by body making the request; This Federal Register document is the Secretary under section 1833(i)(1)(a) • Describe the nature of the request; also available from the Federal Register of the Act. online database through GPO Access, a and Under section 1865(b)(2) of the Act • Provide at least a 30-day public service of the U.S. Government Printing and our regulations in 42 CFR 488.8 comment period. Office. The website address is: http:// (Federal review of accreditation www.access.gpo.gov/nara/index.html. In addition, we must publish a finding of approval or denial of the organizations) our review and I. Background application within 210 days from the evaluation of a national accreditation receipt of the completed request. organization will be conducted in Under the Medicare program, eligible accordance with, but not necessarily beneficiaries may receive covered The American Osteopathic Association (AOA) previously applied limited to, the following factors: services in an ambulatory surgical • The equivalency of an accreditation center (ASC) provided that the ASC to us for deeming authority which we announced in the Federal Register on organization’s requirements for an entity meets certain requirements. Section to our comparable requirements for that 1832(a)(2)(F)(i) of the Social Security March 14, 2001 (66 FR 14906). However, the organization withdrew its entity. Act (the Act) includes requirements that • The organization’s survey process application before a final decision was an ASC have an agreement in effect with to determine the following: the Secretary and that it meet health, made. We received a revised complete + The composition of the survey safety, and other standards specified by application from AOA on April 18, team, surveyor qualifications, and the the Secretary in regulations. 2002. ability of the organization to provide Requirements concerning supplier II. Determining Compliance—Surveys continuing surveyor training. agreements are located in 42 CFR part and Deeming + The comparability of its processes 489 and those pertaining to the survey to that of State agencies, including A national accrediting organization and certification of facilities are set forth survey frequency, and the ability to may request the Secretary to recognize in 42 CFR part 488. investigate and respond appropriately to its program. The Secretary then In 42 CFR part 416, we specify the complaints against accredited facilities. conditions that an ASC must meet in examines the national accreditation + The organization’s procedures for order to participate in the Medicare organization’s requirements to monitoring providers or suppliers found program, the scope of covered services, determine if they meet or exceed by the organization to be out of and the conditions for Medicare Medicare standards. If the Secretary compliance with program requirements. payment for facility services. recognizes an accreditation organization These monitoring procedures are used For an ASC to enter into an in this manner, any provider accredited only when the organization identifies agreement, a State survey agency must by the national accrediting body’s noncompliance. If noncompliance is first certify that the ASC complies with program that we have approved for that identified through validation reviews, our conditions or requirements. service will be ‘‘deemed’’ to meet the the survey agency monitors corrections Following that certification, the ASC is Medicare conditions of coverage. To as specified in 42 CFR 488.7(d). subject to routine monitoring by a State date, three such organizations have been + The ability of the organization to survey agency to ensure continuing recognized to have deeming authority report deficiencies to the surveyed compliance. As an alternative to surveys for their ambulatory surgical programs: facilities and respond to the facility’s by State agencies, section 1865(b)(1) of The Joint Commission on Accreditation plan of correction in a timely manner. the Act provides that, if the Secretary of Health Organizations, the + The ability of the organization to finds that, through accreditation by a Accreditation Association for provide us with electronic data in ASCII national accreditation body, a provider Ambulatory Health Care, and the comparable code, and reports necessary entity demonstrates that all of our American Association for Accreditation for effective validation and assessment applicable conditions and requirements of Ambulatory Surgery Facilities, Inc. of the organization’s survey process. are met or exceeded, the Secretary will The purpose of this notice is to notify + The adequacy of staff and other deem that the provider entity has met the public of the request of the AOA for resources, and its financial viability. the applicable Medicare requirements. approval of its request that the Secretary + The organization’s ability to Section 1865(b)(2) of the Act further find that its accreditation program for provide adequate funding for requires that the Secretary’s findings ASCs meets or exceeds Medicare performing required surveys. consider the applying accreditation conditions and requirements. This + The organization’s policies with organization’s— notice also solicits public comments on respect to whether surveys are • Requirements for accreditation; the ability of this organization to announced or unannounced. • Survey procedures; develop and apply standards that meet • The accreditation organization’s • Ability to provide adequate or exceed the Medicare conditions for agreement to provide us with a copy of resources for conducting required coverage to ASCs. Our regulations the most current accreditation survey surveys; concerning approval of accrediting together with any other information • Ability to supply information for organizations are set forth in 42 CFR related to the survey as we may require use in enforcement activities; § 488.4, 488.6, and 488.8. (including corrective action plans).

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IV. Notice Upon Completion of that has requested approval for deeming DEPARTMENT OF HEALTH AND Evaluation authority for ambulatory surgical HUMAN SERVICES Upon completion of our evaluation, centers that are participating in the including our review of comments Medicare program. Since these provider Food and Drug Administration received as a result of this notice, we entities must be routinely monitored to [Docket No. 02N–0159] will publish a notice in the Federal determine compliance with Medicare Register announcing the results of our requirements, we believe that this Agency Information Collection evaluation. organization’s accreditation program has Activities; Proposed Collection; the potential to reduce both the Comment Request; Focus Groups as V. Response to Public Comments regulatory and administrative burdens Used by the Food and Drug Because of the large number of associated with the Medicare program Administration comments we normally receive on requirements. AGENCY: Food and Drug Administration, Federal Register documents published This notice is not a major rule as for comment, we are not able to HHS. defined in Title 5, United States Code, ACTION: Notice. acknowledge or respond to them section 804(2) and is not an individually. We will consider all economically significant rule under SUMMARY: The Food and Drug comments we receive by the date and Executive Order 12866. Administration (FDA) is announcing an time specified in the DATES section of opportunity for public comment on the this preamble and will respond to them Therefore, we have determined, and proposed collection of certain in a forthcoming rulemaking document. the Secretary certifies, that this proposed notice would not result in a information by the agency. Under the VI. Regulatory Impact Statement significant impact on small entities and Paperwork Reduction Act of 1995 (the We have examined the impact of this would not have an effect on the PRA), Federal agencies are required to notice as required by Executive Order operations of small rural hospitals. publish notice in the Federal Register 12866 (September 1993, Regulatory Therefore, we are not preparing analyses concerning each proposed collection of Planning and Review), the Regulatory for either the RFA or section 1102(b) of information and to allow 60 days for Flexibility Act (RFA) (September 16, the Act. public comment in response to the 1980, Pub. L. 96–354), section 1102(b) of notice. This notice solicits comments on Section 202 of the Unfunded the Social Security Act, the Unfunded focus groups as used by FDA. These Mandates Reform Act of 1995 also Mandates Reform Act of 1995 (Pub. L. focus groups gauge public opinion, and requires that agencies assess anticipated 104–4), and Executive Order 13132. policymakers can use focus group Executive Order 12866 directs costs and benefits before issuing any findings to test and refine their ideas so agencies to assess all costs and benefits rule that may result in expenditure in they can conduct further research whose of available regulatory alternatives and, any 1 year by State, local, or tribal findings can be used to adopt new if regulation is necessary, to select governments, in the aggregate, or by the policies and to allocate or redirect regulatory approaches that maximize private sector, of $110 million. This significant resources to support these net benefits (including potential notice would have no consequential policies. effect on State, local, or tribal economic, environmental, public health DATES: Submit written or electronic and safety effects; distributive impacts; governments. We believe the private sector costs of this notice would fall comments on the collection of and equity). information by July 23, 2002. The RFA requires agencies to analyze below this threshold as well. ADDRESSES: Submit electronic options for regulatory relief for small In accordance with Executive Order comments on the collection of businesses, nonprofit organizations, and 13132, this notice would not information to http:// government agencies. Most hospitals significantly affect the rights of States www.accessdata.fda.gov/scripts/oc/ and most other providers and suppliers and would not significantly affect State dockets/edockethome.cfm. Submit are small entities, either by nonprofit authority. This notice describes only written comments on the collection of status or by having revenues of $5 processes that must be undertaken to information to the Dockets Management million to $25 million or less in any 1 fulfill our obligation to enforce our Branch (HFA–305), Food and Drug year (for details, see the Small Business regulations as required by the April 8, Administration, 5630 Fishers Lane, rm. Administration’s publication that set 1997 (62 FR 16985) regulation. forth size standards for health care 1061, Rockville, MD 20852. All In accordance with the provisions of industries at 65 FR 69432). For purposes comments should be identified with the Executive Order 12866, this notice was of the RFA, States and individuals are docket number found in brackets in the not reviewed by the Office of not considered small entities. heading of this document. Management and Budget. Also, section 1102(b) of the Act FOR FURTHER INFORMATION CONTACT: requires the Secretary to prepare a Authority: Section 1865(b)(3)(A) of the Mark L. Pincus, Office of Information regulatory impact analysis for any Social Security Act (42 U.S.C. Resources Management (HFA–250), notice that may have a significant 1395bb(b)(3)(A)). Food and Drug Administration, 5600 Fishers Lane, Rockville, MD 20857, impact on the operations of a substantial (Catalog of Federal Domestic Assistance 301–827–1471. number of small rural hospitals. Such Program No. 93.778, Medical Assistance an analysis must conform to the Program; and No. 93.774, Medicare— SUPPLEMENTARY INFORMATION: Under the provisions of section 603 of the RFA. Supplementary Medical Insurance Program) PRA (44 U.S.C. 3501–3520), Federal agencies must obtain approval from the For purposes of section 1102(b) of the Dated: May 17, 2002. Act, we consider a small rural hospital Office of Management and Budget as a hospital that is located outside of Thomas A. Scully, (OMB) for each collection of a Metropolitan Statistical Area and has Administrator, Centers for Medicare & information they conduct or sponsor. fewer than 100 beds. Medicaid Services. ‘‘Collection of information’’ is defined This notice merely recognizes AOA as [FR Doc. 02–12929 Filed 5–23–02; 8:45 am] in 44 U.S.C. 3502(3) and 5 CFR a national accreditation organization BILLING CODE 4120–01–P 1320.3(c) and includes agency requests

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or requirements that members of the information will have practical utility; proposals. Focus groups do provide an public submit reports, keep records, or (2) the accuracy of FDA’s estimate of the important role in gathering information provide information to a third party. burden of the proposed collection of because they allow for a more indepth Section 3506(c)(2)(A) of the PRA (44 information, including the validity of understanding of consumers’ attitudes, U.S.C. 3506(c)(2)(A)) requires Federal the methodology and assumptions used; beliefs, motivations, and feelings than agencies to provide a 60-day notice in (3) ways to enhance the quality, utility, do quantitative studies. the Federal Register concerning each and clarity of the information to be Also, information from these focus proposed collection of information, collected; and (4) ways to minimize the groups will be used to develop policy including each proposed extension of an burden of the collection of information and redirect resources, when necessary, existing collection of information, on respondents, including through the to our constituents. If this information is before submitting the collection to OMB use of automated collection techniques, not collected, a vital link in information for approval. To comply with this when appropriate, and other forms of gathering by FDA to develop policy and requirement, FDA is publishing notice information technology. programmatic proposals will be missed of the proposed collection of Focus Groups as Used by the Food and causing further delays in policy and information set forth in this document. Drug Administration program development. With respect to the following FDA will collect and use information FDA estimates the burden for collection of information, FDA invites gathered through the focus group completing the forms for this collection comments on: (1) Whether the proposed vehicle. This information will be used of information as follows: collection of information is necessary to develop programmatic proposals, and The total annual estimated burden for the proper performance of FDA’s as such complements other important imposed by this collection of functions, including whether the research findings to develop these information is 2,884 hours annually.

TABLE 1.—ESTIMATED ANNUAL REPORTING BURDEN1

Hours of No. of Focus No. of Focus No. of Duration for Center Subject Groups per Groups Sessions Participants per Each Group Total Hours Study Conducted Group (includes Annually screening)

Center for Biologics May use focus 1 5 9 1.58 71 Evaluation and Re- groups when ap- search propriate Center for Drug Eval- Varies (e.g., direct-to- 10 100 9 1.58 1,422 uation and Re- consumer Rx drug search promotion, physi- cian labeling of Rx drugs, medication guides, over-the- counter drug label- ing, risk commu- nication) Center for Devices Varies (e.g., FDA 5 25 9 2.08 468 and Radiological Seal of Approval, Health patient labeling, tampons, online sales of medical products, latex gloves) Center for Food Safe- Varies (e.g., food 8 32 9 1.58 455 ty and Applied Nu- safety, nutrition, di- trition etary supplements, and consumer edu- cation) Center for Veterinary Varies (e.g., food 5 25 9 2.08 468 Medicine safety, labeling, cosmetic safety and labeling) Total 29 187 1.71 2,884 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

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Annually, FDA projects about 29 which: (1) Additional studies are Dated: May 20, 2002. focus group studies using 187 focus needed to assess the safety and Linda A. Suydam, groups lasting an average of 1.71 hours effectiveness of the use of the drug in Senior Associate Commissioner for each. FDA has allowed burden for the pediatric population and (2) the Communications and Constituent Relations. unplanned focus groups to be drug has no remaining marketing [FR Doc. 02–13106 Filed 5–23–02; 8:45 am] completed so as not to restrict the exclusivity or patent protection. This BILLING CODE 4160–01–S agency’s ability to gather information on list is mandated by the Best public sentiment for its proposals in its Pharmaceuticals for Children Act and regulatory as well as other programs. the National Institutes of Health is the DEPARTMENT OF HEALTH AND HUMAN SERVICES Dated: May 14, 2002. designated lead. At 4:30 p.m., Margaret M. Dotzel, representatives from Europe will Food and Drug Administration Associate Commissioner for Policy. provide information to the [FR Doc. 02–13163 Filed 5–23–02; 8:45 am] subcommittee on the ongoing pediatric Process Analytical Technologies BILLING CODE 4160–01–S initiatives in the European Union. Subcommittee of the Advisory Following this at 5 p.m., the agency will Committee for Pharmaceutical provide an update to the subcommittee Science; Notice of Meeting DEPARTMENT OF HEALTH AND on the pediatric labeling that has AGENCY: Food and Drug Administration, HUMAN SERVICES resulted from the exclusivity initiative HHS. under the FDA Modernization Act and Food and Drug Administration ACTION: Notice. the annual update on the pediatric rule, Pediatric Subcommittee of the Anti- completed studies, deferrals, and This notice announces a forthcoming Infective Drugs Advisory Committee; waivers. The background material for meeting of a public advisory committee Notice of Meeting this meeting will be posted on the of the Food and Drug Administration Internet when available or one working (FDA). The meeting will be open to the AGENCY: Food and Drug Administration, day before the meeting on the Internet public. HHS. at www.fda.gov/ohrms/dockets/ac/ Name of Committee: Process ACTION: Notice. menu.htm. Analytical Technologies Subcommittee of the Advisory Committee for This notice announces a forthcoming Procedure: Interested persons may Pharmaceutical Science. meeting of a public advisory committee present data, information, or views, General Function of the Committee: of the Food and Drug Administration orally or in writing, on issues pending To provide advice and (FDA). The meeting will be open to the before the subcommittee. Written recommendations to the agency on public. submissions may be made to the contact FDA’s regulatory issues. Name of Committee: Pediatric person by June 3, 2002. Oral Date and Time: The meeting will be Subcommittee of the Anti-Infective presentations from the public will be held on June 12, 2002, from 8:30 a.m. Drugs Advisory Committee. scheduled between approximately 9:15 to 5:30 p.m., and June 13, 2002, from 8 General Function of the Committee: a.m. and 9:45 a.m. and 2 p.m. and 2:30 a.m. to 5 p.m. To provide advice and p.m. Time allotted for each presentation Location: Hilton DC North— recommendations to the agency on may be limited. Those desiring to make Gaithersburg, The Ballrooms, 620 Perry FDA’s regulatory issues. formal oral presentations should notify Pkwy., Gaithersburg, MD. Date and Time: The meeting will be Contact Person: Kathleen Reedy and the contact person before June 3, 2002, held on June 11, 2002, from 8 a.m. to 6 Jayne Peterson, Center for Drug and submit a brief statement of the p.m. Evaluation and Research (HFD–21), Location: Holiday Inn, Versailles general nature of the evidence or Food and Drug Administration, 5600 Ballroom, 8120 Wisconsin Ave., arguments they wish to present, the Fishers Lane (for express delivery, 5630 Bethesda, MD. names and addresses of proposed Fishers Lane, rm. 1093), Rockville, MD Contact Person: Thomas H. Perez, participants, and an indication of the 20857, 301–827–7001, or e-mail: Center for Drug Evaluation and Research approximate time requested to make [email protected], (HFD–21), Food and Drug their presentation. [email protected] or FDA Administration, 5600 Fishers Lane (for Persons attending FDA’s advisory Advisory Committee Information Line, express delivery 5630 Fishers Lane, rm. committee meetings are advised that the 1–800–741–8138 (301–443–0572 in the 1093), Rockville, MD 20857, 301–827– agency is not responsible for providing Washington, DC area), code 12539. 7001, e-mail: [email protected], or access to electrical outlets. Please call the Information Line for up- FDA Advisory Committee Information to-date information on this meeting. Line, 1–800–741–8138 (301–443–0572 FDA welcomes the attendance of the Agenda: On June 12, 2002, the in the Washington, DC area), code public at its advisory committee subcommittee will: (1) Identify and 12530. Please call the Information Line meetings and will make every effort to define technology and regulatory for up-to-date information on this accommodate persons with physical uncertainties/hurdles, possible meeting. disabilities or special needs. If you solutions, and strategies for the Agenda: Beginning at 8 a.m., the require special accommodations due to successful implementation of process subcommittee will discuss and receive a disability, please notify Thomas H. analytical technologies (PATs) in comments on the ‘‘written request Perez at least 7 days in advance of the pharmaceutical development and template’’ for the proton pump meeting. manufacturing; (2) discuss general inhibitors in the treatment of Notice of this meeting is given under principles for regulatory application of gastroesophageal reflux disease in the Federal Advisory Committee Act (5 PATs including principles of method pediatric patients. Starting at 1 p.m., the U.S.C. app. 2). validation, specifications, and feasibility subcommittee will discuss a of the parametric release concept; and ‘‘preliminary priority list’’ of drugs for (3) discuss necessary general FDA

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guidance to facilitate the Advisory Committee scheduled to meet Persons who do not file a request in implementation of PATs. On June 13, during the month of June 2002. advance for a presentation, but wish to 2002, the focus will be on the following Name: Advisory Committee on make an oral statement may register to two working groups: (1) Product and Interdisciplinary, Community-Based do so at the Doubletree Hotel, Rockville, process development, and (2) process Linkages. Maryland on June 24, 2002. These and analytical validation. The two Date and Time: June 24, 2002, 8:30 persons will be allocated time as the working groups will be formed from the a.m.–5 p.m., June 25, 2002, 8 a.m.–4 Committee meeting agenda permits. merging of the previous four PAT p.m. Anyone requiring information working groups, which included: (1) Place: The Doubletree Hotel, 1750 regarding the Committee should contact Product and process development; (2) Rockville Pike, Rockville, Maryland Bernice A. Parlak, Division of State, process and analytical validation; (3) 20852. Community, and Public Health, Bureau chemometrics; and (4) process The meeting is open to the public. of Health Professions, Health Resources analytical technologies, applications, Agenda items will include, but not be and Services Administration, Room 9– and benefits. limited to: Welcome; plenary discussion 105,5600 Fishers Lane, Rockville, Procedure: Interested persons may of the role of the grant programs under Maryland 20857, Telephone (301) 443– present data, information, or views, Title VII, Part D, Public Health Service 1898. orally or in writing, on issues pending Act in meeting Public Health Proposed agenda items are subject to before the subcommittee. Written Preparedness objectives; status reports change as priorities dictate. submissions may be made to the contact on the FY 2002 grant awards for the Dated: May 21, 2002. person by May 31, 2002. Oral Area Health Education Centers, Health Jane M. Harrison, presentations from the public will be Education and Training Centers, Director, Division of Policy Review and scheduled between approximately 1 Geriatric Education and Training Coordination. p.m. and 2 p.m. on both days. Time Programs, Quentin N. Burdick Programs [FR Doc. 02–13165 Filed 5–23–02; 8:45 am] allotted for each presentation may be for Rural Interdisciplinary Training, BILLING CODE 4165–15–P limited. Those desiring to make formal Allied Health, Psychology, Chiropractic oral presentations should notify the and Podiatric Medicine programs; report contact person before May 31, 2002, and on the Multidisciplinary Summit: DEPARTMENT OF HEALTH AND submit a brief statement of the general Changing Health Professions Education HUMAN SERVICES nature of the evidence or arguments and Practice—A Focus on Quality for they wish to present, the names and the 21st Century; presentations by Office of Inspector General addresses of proposed participants, and speakers representing: the Division of Program Exclusions: April 2002 an indication of the approximate time State, Community and Public Health, requested to make their presentation. Bureau of Health Professions, Health AGENCY: Office of Inspector General, Persons attending FDA’s advisory Resources and Services Administration; HHS. committee meetings are advised that the and Committee members. Meeting ACTION: Notice of program exclusions. agency is not responsible for providing content will address the preparation of access to electrical outlets. the Committee’s annual report to the During the month of April 2002, the FDA welcomes the attendance of the Secretary and the Congress and the HHS Office of Inspector General public at its advisory committee scheduling of topics for the next imposed exclusions in the cases set meetings and will make every effort to Committee meeting in August 2002. forth below. When an exclusion is accommodate persons with physical Public comment will be permitted imposed, no program payment is made disabilities or special needs. If you before lunch and at the end of the to anyone for any items or services require special accommodations due to Committee meeting on June 25, 2002. (other than an emergency item or a disability, please contact Carolyn Oral presentations will be limited to 5 service not provided in a hospital Jones at 301–827–7001 at least 7 days in minutes per public speaker. Persons emergency room) furnished, ordered or advance of the meeting. interested in providing an oral prescribed by an excluded party under Notice of this meeting is given under presentation should submit a written the Medicare, Medicaid, and all Federal the Federal Advisory Committee Act (5 request, with a copy of their Health Care programs. In addition, no U.S.C. app. 2). presentation to: Bernice A. Parlak, program payment is made to any Dated: May 20, 2002. Executive Secretary, Division of State, business or facility, e.g., a hospital, that Linda A. Suydam, Community, and Public Health, Bureau submits bills for payment for items or Senior Associate Commissioner for of Health Professions, Health Resources services provided by an excluded party. Communications and Constituent Relations. and Services Administration, Room 9– Program beneficiaries remain free to [FR Doc. 02–13107 Filed 5–23–02; 8:45 am] 105, 5600 Fishers Lane, Rockville, decide for themselves whether they will BILLING CODE 4160–01–S Maryland 20857, Telephone (301) 443– continue to use the services of an 1898. excluded party even though no program Requests should contain the name, payments will be made for items and DEPARTMENT OF HEALTH AND address, telephone number, and any services provided by that excluded HUMAN SERVICES business or professional affiliation of party. The exclusions have national the person desiring to make an oral effect and also apply to all Executive Health Resources and Services presentation. Groups having similar Branch procurement and non- Administration interests are requested to combine their procurement programs and activities. Advisory Committee; Notice of Meeting comments and present them through a single representative. The Division of Effective Subject city, state date In accordance with section 10(a)(2) of State, Community and Public Health the Federal Advisory Committee Act, will notify each presenter by mail or Program-Related Convictions (Pub. L. 92–463), announcement is telephone of their assigned presentation made of the following National time. Ahmed, Amir ...... 05/20/2002

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Effective Effective Effective Subject city, state date Subject city, state date Subject city, state date

Richmond, VA Yakima, WA Lindenwold, NJ ARG Associates ...... 05/20/2002 Washington, Patty ...... 05/20/2002 Rinehart, Jeffrey Paul ...... 05/20/2002 Ellicott City, MD Columbus, OH Blackwell, OK Beckerman, Joseph F ...... 05/20/2002 Wellman, Mary Lou ...... 05/20/2002 Rudd, Tonya L ...... 05/20/2002 Georgetown, KY Westlake, OH Memphis, TN Borja, Cuauhtemoc ...... 05/20/2002 Sabate, Neonita ...... 05/20/2002 San Diego, CA Felony Conviction for Health Care Fraud Clinton, NJ Caldwell, Regina ...... 05/20/2002 Smith-Owens, Joyce Francine 05/20/2002 Campos, Lucy B ...... 05/20/2002 Columbus, OH Canton, OH Pleasanton, CA Camiolo, Christopher ...... 05/20/2002 Stowell, Kevin B ...... 05/20/2002 Montverde, FL Caudle, Joel P ...... 05/20/2002 Cleveland, OH Carolina Urological Consultant 07/11/2001 Brentwood, TN Street, Eugenia A ...... 05/20/2002 Conway, SC Funk, Dawn E ...... 05/20/2002 Chyorny, Leonid ...... 05/20/2002 Broadalbin, NY N Charleston, SC Los Angeles, CA Lepko, Ervin E ...... 05/20/2002 Stubbs, Darryl ...... 05/20/2002 Cichanowski, Doris Ann ...... 05/20/2002 Englewood Cliffs, NJ Temple Hills, MD Brooklyn Park, MN Steward, Dwight ...... 05/20/2002 Taylor, Tosha L ...... 05/20/2002 Davila-Aponta, Wanda ...... 05/20/2002 Washngton, DC Sandusky, OH Tosa Alta, PR Straface, Eugene ...... 05/20/2002 Tyson, Kuyana S ...... 05/20/2002 Der Gregorian, Alain Avans ..... 05/20/2002 Limerick, PA Syracuse, NY Glendale, CA Donahue, Thomas P ...... 05/20/2002 Felony Control Substance Conviction Conviction for Health Care Fraud Lafollette, TN Dzhragatspanyan, Arsen ...... 05/20/2002 Amar, John Jason ...... 05/20/2002 Gunnoe, Eliza T ...... 05/20/2002 Panorama City, CA Victorville, CA Newbury, MA Eason, Darrin Dwight ...... 05/20/2002 Boyd, Darryl ...... 05/20/2002 Detroit, MI Fort Dix, NJ Conviction-Obstruction of an Investigation Espinoza, Carlos Antonio ...... 05/20/2002 Connoyer, Caryl V ...... 05/20/2002 Gardena, CA Bethalto, IL Leggett, Bethaney Moreau ...... 05/20/2002 Ferrer, Annilie Arcangel ...... 05/20/2002 Hendricks, Jeffrey Phillip ...... 05/20/2002 Lafayette, LA Chowchilla, CA Holland, MI Gasisyan, Arsen ...... 05/20/2002 Hennessey, Sandra J ...... 05/20/2002 License Revocation/Suspension/ Glendale, CA Plainfield, VT Surrendered Halas, John ...... 05/20/2002 Hill, Pamela Jane ...... 05/20/2002 Voorhees, NJ Broken Arrow, OK Abraham, Annalyn ...... 05/20/2002 Kabrin, Marta ...... 05/20/2002 Keenan, Patricia A ...... 05/20/2002 Richfield, UT Mequon, WI Twin Lakes, WI Angel, David Lewis Jr ...... 05/20/2002 Kirkland, Mattie ...... 05/20/2002 Landreth Serrano, Regina ...... 05/20/2002 Greenwood, IN Catonsville, MD Gatesville, TX Arbanas, Gregory Christopher 05/20/2002 Mardin, Rober S ...... 05/20/2002 Leonard, Elaine W ...... 05/20/2002 Mountain View, CA Granada Hills, CA Newport News, VA Baber, Karly Robyn ...... 05/20/2002 Martin, Elizabeth ...... 05/20/2002 Mchugh-Reiner, Jean ELIZA- Abilene, TX Marianna, FL BETH ...... 05/20/2002 Batsford, Edgar W ...... 05/20/2002 McClatchy, Jessica Warren ...... 05/20/2002 St Charles, MO Smithfield, RI Fergus Falls, MN Mohrhardt, Debra Ann ...... 05/20/2002 Berryhill, Wesley Eugene ...... 05/20/2002 Mkrtchyan, Ovsep ...... 05/20/2002 Spring Lake, MI Batesville, AR Los Angeles, CA Newman, Jean M ...... 05/20/2002 Blackwood-Day, Jane A ...... 05/20/2002 Muniz, Ivette T ...... 05/20/2002 Wilkes-Barre, PA St Johnsbury Ctr, VT San Juan, PR Boales, Jerry Lee ...... 05/20/2002 Nicholson, Jennifer L ...... 05/20/2002 Patient Abuse/Neglect Convictions Eager, AZ Columbus, OH Borland, Melissa G ...... 05/20/2002 Allaman, Mary ...... 05/20/2002 Novosel, Mark Eugene ...... 05/20/2002 Pawtucket, RI Billings, MT FT Lauderdale, FL Breaux, Davina ...... 05/20/2002 Nunez, Perla ...... 05/20/2002 Bishop, Katherine M ...... 05/20/2002 Lafayette, LA Victorville, CA Oxford, MS Bretton, Kimberly A ...... 05/20/2002 Perez, Daisy ...... 05/20/2002 Bivins, Loretha ...... 05/20/2002 Miami, FL State Line, MS S Easton, MA Pham, Michael Q ...... 05/20/2002 Deloach, Terrance ...... 05/20/2002 Brown, Elizabeth Anne ...... 05/20/2002 Long Beach, CA Ellisville, MS Oklahoma City, OK Pisarevsky, Yevgeny ...... 05/20/2002 Eaton, Brian James ...... 05/20/2002 Brown, Jimmy William ...... 05/20/2002 Brooklyn, NY Grass Valley, CA De Witt, AR Plasencia, Daniel ...... 05/20/2002 Hankins, Ronald E ...... 05/20/2002 Calhoon, Dawn Marie ...... 05/20/2002 Miami, FL Milwaukee, WI Austin, TX Ramos, Daniel M ...... 05/20/2002 Harris, Daphne D ...... 05/20/2002 Callagy, Patti J ...... 05/20/2002 Miami, FL Louin, MS N Andover, MA Ruiz, Reyna Isabel ...... 05/20/2002 Hatfield, Billie ...... 05/20/2002 Carson, Mallory D ...... 05/20/2002 South Gate, CA Falls of Rough, KY Mesa, AZ Santos, Fredesvinda ...... 05/20/2002 Joiner, Cynthia ...... 05/20/2002 Cascio, Daniel ...... 05/20/2002 Miami Beach, FL Clarksdale, MS Dover, NJ Sosa, Lysette ...... 04/10/2001 Mosely, Beverly ...... 05/20/2002 Castleberry, Sheila R ...... 05/20/2002 Miami, FL Meridian, MS Brookport, IL Toman, John S ...... 05/20/2002 Perez, Yolanda ...... 05/20/2002 Cheng, Samuel K ...... 05/20/2002 Mclean, VA Baltimore, MD Woodland Hills, CA Vargas, Laura Astor ...... 05/20/2002 Perrin, Douglas M ...... 05/20/2002 Chervenka, Mary Kopriva ...... 05/20/2002

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Effective Effective Effective Subject city, state date Subject city, state date Subject city, state date

Lake Ridge, VA Los Angeles, CA Rochester, NY Chiaverelli, Patricia Groves ...... 05/20/2002 Henson, Kathy Vaughn ...... 05/20/2002 Missildine, Pamela S ...... 05/20/2002 Philadelphia, PA Bristol, VA Eufaula, AL Ciell, Michael P ...... 05/20/2002 Holbert, Roschell W ...... 05/20/2002 Morales, Carmen L ...... 05/20/2002 Safety Harbor, FL Chicago, IL Chicago, IL Cochara, John R ...... 05/20/2002 Holland, Pamela ...... 05/20/2002 Morgan, Jeanette M ...... 05/20/2002 Twin Lakes, WI Harrisonburg, LA Swansea, IL Cook, Paul Allen ...... 05/20/2002 Hopkins Freeman, April C ...... 05/20/2002 Mulfinger, George L ...... 05/20/2002 Whitaker, PA Lubbock, TX Pasadena, CA Crockett, Karen H ...... 05/20/2002 Horne, Kathleen M ...... 05/20/2002 Murphy, Ronda F ...... 05/20/2002 Deerfield Beach, FL Woodsville, NH Carterville, IL Cullison, David John ...... 05/20/2002 Howarter, Brandon G ...... 05/20/2002 Nielsen, Laura Joan ...... 05/20/2002 Huntingdon Valley, PA Canton, IL Pocatello, ID Daines, Lori S ...... 05/20/2002 Howe, Mary A ...... 05/20/2002 Oberlender, Sheri Lynn Craig .. 05/20/2002 Logan, UT Rockford, IL Sandpoint, ID Dane, Mellissa L ...... 05/20/2002 Hughes, Cathy A ...... 05/20/2002 Oswald, Thomas Allen ...... 05/20/2002 Bennington, VT Chicago, IL Wadsworth, OH Danko, Rose M ...... 05/20/2002 Hulet, Geoffrey A ...... 05/20/2002 Ott, Richard M ...... 05/20/2002 Branford, CT Chicago, IL St Petersburg, FL Daruka, Patricia A ...... 05/20/2002 Hulse, Marlene Brown ...... 05/20/2002 Owens, Rhonda A ...... 05/20/2002 Warwick, RI Blackfoot, ID Chicago, IL David, Ruth Richter ...... 05/20/2002 Hutchinson, Christine E ...... 05/20/2002 Pansegrau, Mary Catherine ..... 05/20/2002 Cedar Rapids, IA S Burlington, VT Correctionville, IA Decarlo, Roselle ...... 05/20/2002 Jackson, Kelly M ...... 05/20/2002 Parris, Russell ...... 05/20/2002 Hoffman Estates, IL White Hall, IL Aurora, CO Dichter, Terry A ...... 05/20/2002 Jackson, Dedire L ...... 05/20/2002 Pierce, Grant M ...... 05/20/2002 Huntington Park, CA Chicago, IL Rockford, IL Dirks, Holly E ...... 05/20/2002 Jasmine, Annetta ...... 05/20/2002 Pille, Mary Knight ...... 05/20/2002 Barrington, RI Lake Charles, LA Herman, NE Dixon, Leonaine Wells ...... 05/20/2002 Jones, Sharon ...... 05/20/2002 Plachy, Robert Thomas Jr ...... 05/20/2002 Claremont, CA Chicago, IL Amagansett, NY Dodge, David Child III ...... 05/20/2002 Joo, Young Hwa ...... 05/20/2002 Provenzano, Frank J ...... 05/20/2002 Denver, CO Cyrpress, CA Uniontown, PA Dyman, Katharine E ...... 05/20/2002 Jordan, Maria A ...... 05/20/2002 Quevedo, Ranona Dale ...... 05/20/2002 Middletown, RI Calumet City, IL Rockford, IL Everett, Steven Tyler ...... 05/20/2002 Karp, Cherie F ...... 05/20/2002 Rachel Pharmacy Discount, Inc 05/20/2002 Port St Luce, FL Oakdale, NY Hialeah, FL Figoten, Bruce Barry ...... 05/20/2002 Kaswan, Malcolm ...... 05/20/2002 Ratcliff, Michelle Lee ...... 05/20/2002 Woodland Hills, CA Water Mill, NY Henderson, TX Fletcher, Roberta ...... 05/20/2002 Kellis, Donald Leroy ...... 05/20/2002 Reardon, Richard R ...... 05/20/2002 Brattleboro, VT Boise, ID Phoenix, AZ Fortin, Jacqueline Annette ...... 05/20/2002 Kemp, Anita Kay ...... 05/20/2002 Reber, Mary Ann S ...... 05/20/2002 Benton, AR Roanoke, TX Lytle, TX Fruhwirth, Kathleen H ...... 05/20/2002 Kennedy, Janis Elaine ...... 05/20/2002 Reed, Lorraine ...... 05/20/2002 Harrisburg, PA Palmdale, CA New Hope, PA Funicella, Karen ...... 05/20/2002 King, Paula ...... 05/20/2002 Reid, Kendall A ...... 05/20/2002 Lynn, MA Houma, LA Chicago, IL Gibson, Kimberly G ...... 05/20/2002 Kline, Brandy D ...... 05/20/2002 Rheinheimer, Heide M ...... 05/20/2002 St James, MO Knoxville, IA Atlanta, GA Gilbert, Scott E ...... 05/20/2002 Kofman, Glenn ...... 05/20/2002 Ripley, Elizabeth ...... 05/20/2002 Tulsa, OK Wheeling, IL Middleburg, FL Godard, Elaine Burns ...... 05/20/2002 Krajnc, Sidnee L ...... 05/20/2002 Rizzo, Michael J ...... 05/20/2002 E Stroudsburg, PA Price, UT Flinton, PA Gomes, Clarisse D ...... 05/20/2002 Larvey, Kathleen M ...... 05/20/2002 Robinson, Susan Brooks ...... 05/20/2002 Pawtucket, RI Kingston, MA St Petersburg, FL Green, Gregory Neill ...... 05/20/2002 Latawiec, Andrea ...... 05/20/2002 Rogers, Johnna E ...... 05/20/2002 St Louis, MO Clark, NJ Warrenton, MO Greenhill Delong, Edith ...... 05/20/2002 Leafgreen, Becky A ...... 05/20/2002 Rogers, Jason A ...... 05/20/2002 Jefferson, TX Galesburg, IL Miamesburg, OH Grove, Patricia M ...... 05/20/2002 Leth, Ida Kelly ...... 05/20/2002 Rooke, Jacki M ...... 05/20/2002 Rutland, VT St Edward, NE Earlysville, VA Gruer, Barry Howard ...... 05/20/2002 Lichter, Debra Gabbard ...... 05/20/2002 Rothermel, Julie A ...... 05/20/2002 San Diego, CA Philadelphia, PA N Providence, RI Hall, Lisa Michelle ...... 05/20/2002 Manno, Fred ...... 05/20/2002 Rouse, Judy L ...... 05/20/2002 Mesquite, TX Monroeville, PA Cuba, MO Hanzlik, Renata Maria ...... 05/20/2002 Marecic, Judith A ...... 05/20/2002 Rusch, Beverly ...... 05/20/2002 New York, NY Pittsburgh, PA Beulah, ND Harris, Candie L ...... 05/20/2002 McCusker, Charles ...... 05/20/2002 Rust, Gretchen Louise ...... 05/20/2002 Broadview Hgts, OH Murray, UT Miles City, MT Harris, Juanita ...... 05/20/2002 McGuire, Patricia J ...... 05/20/2002 Ryan, Derald L ...... 05/20/2002 Chicago, IL Oak Lawn, IL Glendale, AZ Heard, Lisa ...... 05/20/2002 McLaughlin, Vicky D ...... 05/20/2002 Sanders, Dawn Catrese ...... 05/20/2002 Bossier City, LA Mount Vernon, IL University Park, IL Henriques, Gavin Anthony ...... 05/20/2002 McPherson, Madeleine T ...... 05/20/2002 Schlossman, David Craig ...... 05/20/2002

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Dated: May 15, 2002. Subject city, state Effective Subject city, state Effective date date Calvin Anderson, Jr., Director, Health Care Administrative Overland Park, KS Syracuse, NY Sanctions, Office of Inspector General. Schnoor, Tami S ...... 05/20/2002 Wilhelm, Melissa J ...... 05/20/2002 [FR Doc. 02–13051 Filed 5–23–02; 8:45 am] Kansas City, MO Chicago, IL BILLING CODE 4150–04–P Schoenhoeft, Joseph ...... 05/20/2002 Williams, Vickie E ...... 05/20/2002 Susanville, CA Alton, IL Sefter, Anne H ...... 05/20/2002 Appomattox, VA Wilson, Andrea ...... 05/20/2002 DEPARTMENT OF HEALTH AND Shadrick, Lisa B ...... 05/20/2002 Acra, NY HUMAN SERVICES Salt Lake City, UT Witter, Deborah Sue ...... 05/20/2002 Shaffer Beard, Debra Michelle 05/20/2002 Mesa, AZ National Institutes of Health Oklahoma City, OK Woodruff, Holly Lynn Fabricus 05/20/2002 Shodeinde, Diana F ...... 05/20/2002 Gering, NE Office of Biotechnology Activities Corona, CA Wright, Cecelia R ...... 05/20/2002 (OBA); Recombinant DNA Research: Silfies, Jayne ...... 05/20/2002 Chicago, IL Notice Under the NIH Guidelines Waynesburg, PA Wyatt-Riley, Sharon L ...... 05/20/2002 Soukup, Richard A ...... 05/20/2002 Princeton, IN AGENCY: National Institutes of Health Riverside, IA (NIH), PHS, DHHS. Sporn, Alexander L ...... 05/20/2002 Yates, Debra Lynne ...... 05/20/2002 Rego Park, NY Costa Mesa, CA ACTION: Notice. Stacy, Daniel Franklin ...... 05/20/2002 Yavel, Robert Paul ...... 05/20/2002 Coronado, CA Jamaica, NY SUMMARY: The NIH is announcing that Stanford, Samuel R ...... 05/20/2002 Yemat, Alex Alberto ...... 05/20/2002 Appendix M–I–C–3 and Appendix M–I– Midlothian, VA Miami, FL C–4 of the NIH Guidelines for Research Staple, Andrea Read ...... 05/20/2002 Young, Hui Kim ...... 05/20/2002 Involving Recombinant DNA Molecules San Bernadino, CA Alcoa, TN (NIH Guidelines) became effective on Stapley, Susan Ilene Buchanan 05/20/2002 January 24, 2002, the date of OMB Atascadero, CA approval of those information collection Stephenson, Melanie Ann ...... 05/20/2002 Federal/State Exclusion/Suspension Gallipolis, OH requirements. Also, the NIH is Stevens, Ami Rosemarie ...... 05/20/2002 Pates, Rosemary ...... 05/20/2002 correcting the date for filing annual Zanesville, OH St Louis, MO reports with the NIH, per Appendix M– Suliveres, Sara-Jane ...... 05/20/2002 I–C–3, to be within 60 days of the St Johnsbury, VT Fraud/Kickbacks anniversary date that the IND went into Sutherland Ebel, Amy Jo ...... 05/20/2002 effect. Finally, notice is given that a new Bulgeron, Richard ...... 11/16/2000 Enid, OK version of the NIH Guidelines is San Antonio, TX Thomas, Adriese ...... 05/20/2002 available on the OBA Web site, which Chicago, IL Centafanti, Gary D ...... 04/03/2001 includes these changes as well as other Tilghman, James E ...... 05/20/2002 Naples, FL non-substantive corrections, updates, Cape Girardeau, MO Centafanti, Cathy T ...... 04/03/2001 Tillery, Merlene ...... 05/20/2002 Naples, FL and navigational enhancements. E St Louis, IL Lopez, Anthony R ...... 02/14/2002 FOR FURTHER INFORMATION CONTACT: Torres, Wilhelmina C ...... 05/20/2002 El Paso, TX Allan C. Shipp, NIH Office of Oak Lawn, IL Biotechnology Activities by phone at Travelstead-Russell, Lorie A .... 05/20/2002 Mejia, Manuel ...... 10/24/2000 Galatia, IL Lytle, TX 301–435–2152, by e-mail at Tummillo, Marie E ...... 05/20/2002 Salerno, James G ...... 12/19/2001 [email protected], or by mail at NIH Manakin Sabot, VA Ahoskie, NC OBA, 6705 Rockledge Drive, Suite 750, Turner, John Melton ...... 05/20/2002 Sanvito, Anthony V ...... 12/13/1999 Bethesda, MD 20892–7985. Menlo Park, CA Coraopolis, PA SUPPLEMENTARY INFORMATION: On Ty, Blandina F ...... 05/20/2002 November 19, 2001, NIH OBA Closter, NJ Owned/Controlled by Convicted Entities Vangraefschepe, Laurie June .. 05/20/2002 published a notice of amendments to the NIH Guidelines in the Federal Billings, MT Memorial Medical Center ...... 05/20/2002 Vespe, John Robert ...... 05/20/2002 Register (66 FR 57970). Those Phoenix, AZ Mountain Home, ID amendments became effective on Visacki, Miodrag ...... 05/20/2002 Neurodiagnostic Systems, Inc .. 05/20/2002 December 19, 2001, except for the Sarasota, FL Montverde, FL amendments to Appendix M–I–C–3 Rozenberg Chiropractic ...... 05/20/2002 Volpez, Pablo Enriquez ...... 05/20/2002 (Annual Reports) and Appendix M–I–C– Oakland, CA Hicksville, NY Vu, Hong T ...... 05/20/2002 4 (Safety Reporting), which were Chicago, iL Default on Heal Loan published for public comment to OMB Watson, Lesa ...... 05/20/2002 regarding the paperwork burden of Shreveport, LA Lewis, Stuart Todd ...... 05/20/2002 those information collection Wechling, Clare Deane ...... 05/20/2002 Boynton Beach, FL requirements. It was stated that those O’Fallon, MO Mercado, Rafael L ...... 04/02/2002 Appendices would take effect upon Weremeichik, Jessica L ...... 05/20/2002 San Antonio, TX OMB approval. That approval was given S Burlington, VT Rosales, Anna Marie ...... 04/02/2002 on January 24, 2002. Wexler, Harold Mark ...... 05/20/2002 San Antonio, TX Further, Appendix M–I–C–3 as Chatsworth, CA White, Tracy Lyons ...... 05/20/2002 Winfrey, Brian K ...... 05/20/2002 published in the Federal Register on Phoenix, AZ Astoria, NY November 19, 2001 (66 FR 57970, White, Karrey Lee Stone ...... 05/20/2002 Wisk, Duane F ...... 03/12/2002 specifically 57975), stated that the Meridian, ID Gross Pointe, MI annual report to OBA is to be filed Wilber, Harold ...... 05/20/2002 within 60 days of the date that the IND

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was filed. Appendix M–I–C–3 has been Water’’, a copy of which is available on NTP Web site (http://ntp- corrected to state that annual reports are the NTP’s Web site http://ntp- server.niehs.nih.gov) and upon request to be filed with OBA at the same time server.niehs.nih.gov (see NTP Studies of to the executive secretary at the address that they are filed with the Food and Hexavalent Chromium Compounds given below. Following the meeting, Drug Administration (FDA)—within 60 under What’s New?). summary minutes will be available days of the anniversary of the date the The purpose of this notice is to electronically on the NTP Web site and IND went into effect. This filing announce: in hardcopy upon request to the requirement becomes effective with (1) The availability of data from executive secretary. respect to the first annual safety report studies designed to assess the Tentative Agenda filed after January 24, 2002. absorption of chromium by rats, mice Other minor, non-substantive changes and guinea pigs receiving hexavalent 8:30 AM have been made to the NIH Guidelines, chromium, as sodium dichromate Welcome and introductions as warranted. In addition, for ease in dihydrate, in drinking water; 8:40 AM navigating the document, the NIH (2) The design and availability of data Overview of the NTP Guidelines have been fully indexed. The from 90-day oral toxicity studies in rats Hexavalent chromium nomination electronic version includes hyperlinks and mice receiving hexavalent NTP studies on hexavalent chromium from the index to relevant portions of chromium in drinking water; Proposed design for 2-year studies the body of the document. Thus, when (3) A proposed design for 2-year Public comments users identify a section of interest in the rodent cancer studies of hexavalent Noon index, by simply clicking on the title of chromium in drinking water; Lunch (4) A public meeting to discuss these that section, they will be immediately data and the proposed design for 2-year 1:00 PM brought to the corresponding portion of studies; and Presentation of remarks by scientific the NIH Guidelines. (5) A request for public comments on expert panel All of these changes are listed in these data and the proposed design for General discussion detail in a Summary of Amendments the 2-year studies. 3:30 PM and Corrections that can be accessed, Adjourn along with the new version of the NIH Public Meeting Request for Public Comment Guidelines, at: http://www4.od.nih.gov/ A public meeting will be held July 24, oba/rac/guidelines/guidelines.html. 2002 in the Rodbell Auditorium, Rall The NTP meeting on hexavalent Dated: May 17, 2002. Building, South Campus, National chromium is open to the public and Ruth L. Kirschstein, Institute of Environmental Health public comment is welcome on the data Acting Director, National Institutes of Health. Sciences (NIEHS), 111 T.W. Alexander from the 21-day and 90-day studies, the proposed NTP 2-year study plans, and [FR Doc. 02–13057 Filed 5–23–02; 8:45 am] Drive, Research Triangle Park, North Carolina. The meeting will begin at 8:30 any other issues related to the BILLING CODE 4140–01–P AM and is open to the public. evaluation of the toxicity and Attendance at this meeting is limited carcinogenicity of hexavalent chromium DEPARTMENT OF HEALTH AND only by the space available. Individuals in drinking water. Time will be HUMAN SERVICES who plan to attend are asked to register provided at the meeting for oral public with the NTP executive secretary (see comments and persons requesting time Public Health Service contact information below). The names for an oral presentation are asked to of those registered to attend will be contact the NTP Executive Secretary Dr. National Toxicology Program (NTP); given to the NIEHS Security Office in Mary S. Wolfe, (P.O. Box 12233, MD Availability of Data From Preliminary order to gain access to the campus. A3–01, Research Triangle Park, NC Studies and Proposed Study Protocols Persons attending who have not pre- 27709, phone: 919–541–0530, fax: 919– for Cancer Bioassays of Hexavalent registered may be asked to provide 541–0295, e-mail: Chromium in Rats and Mice; Request pertinent information about the [email protected]). Persons for Public Comment and Notice of meeting, i.e., title or host of meeting registering to make oral comments are Public Meeting before gaining access to the campus. All asked to provide contact information, visitors will need to be prepared to including name, affiliation, mailing Summary show 2 forms of identification (ID), i.e., address, phone, fax, e-mail, and Hexavalent chromium (CAS number driver’s license and one of the supporting organization (if any). Each 18540–29–9) was nominated to the NTP following: company ID, government ID, speaker is also asked to provide, if for study of its potential toxicity and or university ID. Also those planning to possible, a written copy of the statement carcinogenicity when administered to attend who need special assistance are by July 15, 2002, to enable review by the animals in drinking water (see Federal asked to notify the NTP executive Panel and NTP staff prior to the Register: May 7, 2001, Vol. 66, No. 88, secretary in advance of the meeting (see meeting. The written statement can pages 23037–23039). Members of the contact information below). supplement and may expand the oral California legislative delegation, the A tentative agenda is provided below presentation. At least seven minutes California Environmental Protection and includes opportunity for oral public will be allotted to each speaker, and if Agency, and the California Health and comment. A scientific panel of experts time permits, may be extended to ten Human Services Agency nominated (‘‘the Panel’’) will discuss the data, to minutes. Each organization is allowed hexavalent chromium to the NTP for date, obtained from NTP studies of one time slot for an oral presentation. study. The basis for the nomination is hexavalent chromium administered as Registration for making public a document prepared by the California sodium dichromate dihydrate and the comments will also be available on-site. Environmental Protection Agency’s proposed study design for 2-year rodent If registering on-site to speak and (EPA) Office of Environmental Health cancer studies (see below, NTP Studies). reading comments from printed copy, Hazard Assessment titled ‘‘Public The agenda and roster of the Panel will the speaker is asked to provide 15 Health Goal for Chromium in Drinking be available prior to the meeting on the copies of the statement. These copies

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will be distributed to the Panel and NTP Also available on the NTP Web site is adverse effect, caused liver and kidney staff and will be used to supplement the a draft protocol that outlines 2-year toxicity. Other concerns with record. toxicity and carcinogenicity studies of hexavalent chromium given orally Written comments, in lieu of an oral hexavalent chromium in rats and mice. involve gastrointestinal effects. Acute presentation, are also welcome. The The NTP will establish the final design gastritis is a common finding in humans comments should include contact for these studies following completion who accidentally or intentionally information, including name, affiliation, and evaluation of the 90-day studies, ingested various hexavalent chromium mailing address, phone, fax, e-mail, and evaluation of the data for total compounds. Also, in a study reported in sponsoring organization (if any) and chromium tissue concentration from the 1968, a small increase in primarily preferably be received by July 15, 2002, 21-day studies, and consideration of benign forestomach papillomas was to enable review by the Panel and NTP input from the Panel, all written seen in mice exposed to potassium staff prior to the meeting as well as to received in response to this notice, and chromate in the drinking water at 9 mg/ supplement the record. oral public comments received at the kg Chromium VI for three generations public meeting. over 880 days. NTP Studies Background Dated: May 16, 2002. Hexavalent chromium (CAS number Kenneth Olden, 18540–29–9) was nominated to the NTP Chromium is a naturally occurring Director, National Toxicology Program. for study of its potential toxicity and element, present in several valence carcinogenicity when administered to states. The most common valence states [FR Doc. 02–13059 Filed 5–23–02; 8:45 am] animals in the drinking water. are trivalent (Chromium III), hexavalent BILLING CODE 4140–01–P Hexavalent chromium is a known (Chromium VI), and elemental human carcinogen (http://ntp- chromium (0). Chromium III is an essential nutrient forming part of a DEPARTMENT OF HEALTH AND server.niehs.nih.gov, see Report on complex known as the glucose tolerance HUMAN SERVICES Carcinogens). It has been proposed that factor. Chromium compounds are stable the reduction of hexavalent chromium in the trivalent state and occur in nature Public Health Service to the trivalent form in the gut provides most commonly at this oxidation level. a physiological barrier such that when National Toxicology Program; Hexavalent chromium compounds are exposure to hexavalent chromium Announcement of Availability of the next most stable forms, although occurs from drinking water, the Background Documents for these rarely occur in nature and are absorption of hexavalent chromium typically associated with anthropogenic Substances Nominated for Listing in would not be sufficient to cause cancer. (human activities) sources. the Report on Carcinogens, Eleventh Public comments received in response Hexavalent chromium is more toxic Edition to the earlier Federal Register notice than trivalent chromium, and is Availability of Background Documents (see above) suggested that this reductive absorbed from the gut more readily than mechanism would be expected to be trivalent chromium. Hexavalent The National Toxicology Program more effective in humans and other chromium is an oxidant and it reduces (NTP) announces the availability of the animals lacking an anatomical to trivalent chromium, passing through background documents for four forestomach than in rats and mice that the intermediate reactive V and IV nominations under consideration for have a forestomach. valence states. The toxicity of listing in the Report on Carcinogens To address these considerations, the hexavalent chromium is thought to (RoC), Eleventh Edition (‘‘the Eleventh NTP carried out studies in which rats, result from either direct binding of these RoC’’). The background documents are mice and guinea pigs (which lack a intermediates to cellular constituents or available for the nominations: Cobalt forestomach) received drinking water through the generation of free radicals. Sulfate, Diethanolamine, Nitromethane, containing sodium dichromate Prolonged inhalation of hexavalent and 4,4’-Thiodianiline. They can be dihydrate for 21 days. After that time, chromium is an established cause of obtained electronically on the NTP Web the animals were sacrificed and blood, occupational lung cancer in chromate site: http://ntp-server.niehs.nih.gov kidney and bone were collected and production workers and people engaged (select Report on Carcinogens) or in analyzed for total chromium. The in the manufacture of chromate hardcopy by contacting Dr. C. W. complete protocol and data from these pigments. This finding is supported by Jameson at the following address: studies are available on the NTP Web inhalation studies in rats and mice that National Toxicology Program, Report on site (http://ntp-server.niehs.nih.gov). have shown lung tumors following Carcinogens, 79 Alexander Drive, Additionally, the NTP has completed exposure to calcium chromate or Building 4401, Room 3118, P.O. Box 90-day toxicity studies of standard sodium dichromate. 12233, Research Triangle Park, NC design in which F344/N rats and Orally administered chromium 27709; phone: (919) 541–4096, fax: (919) B6C3F1 mice of both sexes received compounds are relatively poorly 541–0144, e-mail: control water or one of 5 concentrations absorbed, with most estimates in the [email protected]. (62.5, 125, 250, 500, or 1000 mg/L) of range of 0.5 to 2%. The absorption of The background documents for these hexavalent chromium in their drinking trivalent chromium is approximately four nominations are the first to be water. The studies included one quarter that of the hexavalent form. released for nominations under measurements of clinical chemistry Hexavalent chromium reduces to consideration for the Eleventh RoC. indices and the animals received a trivalent chromium in the stomach, and These documents are being made complete histopathological evaluation. this reduction may potentially limit its available at this time in response to the The protocol outline for these studies is systemic availability. This ‘‘protective’’ October, 1999 public meeting that also available on the NTP Web site and mechanism is not complete, however, discussed the preparation and review of data from the 90-day studies are because studies have shown that orally the Report on Carcinogens where anticipated to be available on the NTP administered hexavalent chromium, concerns were expressed regarding the Web site approximately one month prior when given at doses far below those need to increase the time allotted for to the meeting. where trivalent chromium showed no public review and comment on the RoC

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background documents. The NTP will Dated: May 9, 2002. Part II: The Review Process— make all future RoC background Samuel H. Wilson, intergovernmental review, initial ACF documents available as soon as they are Deputy Director, National Toxicology screening, and competitive review. completed. All future notifications Program. Part III: The Application—application about the availability of background [FR Doc. 02–13058 Filed 5–23–02; 8:45 am] forms, application submission and documents for other nominations under BILLING CODE 4140–01–P deadlines, certifications, general consideration for the Eleventh RoC will instructions for preparing a full be provided through NTP list-server project description, and length of announcements. Individuals or groups DEPARTMENT OF HEALTH AND application. can subscribe to the NTP list-server in HUMAN SERVICES Part IV: Post-award—applicable regulations, treatment of program several ways: (1) By registering online at Administration for Children and income, and reporting requirements. http://ntp-server.niehs.nih.gov, (2) by Families sending an e-mail to ntpmail- Paperwork Reduction Act of 1995 (Pub. [email protected] with the [Program Announcement No. CFDA 93.598] L. 104–13) word ‘‘subscribe’’ as the body of the Public reporting burden for this message, or (3) by contacting the NTP ORR Announcement for Services To Victims of a Severe Form of Trafficking collection of information is estimated to Office of Liaison and Scientific Review average 16 hours per response, (919–541–0530 or AGENCY: Office of Refugee Resettlement including the time for reviewing [email protected]). (ORR), ACF, HHS. instructions, gathering and maintaining Individuals or groups who have already ACTION: Request for Applications for the data needed, and reviewing the subscribed to the NTP list-server do not projects to increase awareness about collection of information. The following need to subscribe again. human trafficking and to support information collections are included in The NTP has identified the services for individuals determined to the program announcement for nominations under consideration for be victims of a severe form of categories 1–3: OMB Approval No. listing in the Eleventh RoC in previous trafficking. This notice supersedes the 0970–0139, ACF UNIFORM PROJECT Federal Register notices (Federal notice published in the Federal Register DESCRIPTION (UPD) attached as Register: July 24, 2001 (Vol. 66, No. 142) on February 8, 2002 (67 FR 6048). Appendix A, which expires 12/30/03 pages 38430–38432 and Federal and OMB Approval No. 0970–0036, SUMMARY: This ORR announcement ORR Quarterly Performance Report Register: March 28, 2002 (Vol. 67, No. invites submission of grant applications (QPR) and Schedule C which expire 7/ 60) page 14957). The NTP follows a for funding, on a competitive basis, in 31/02. An agency may not conduct or formal process for the review of three categories: Category 1—Local/ sponsor, and a person is not required to nominations that includes multiple Community Outreach and/or Services respond to, a collection of information phases of scientific peer review and for Victims of a Severe Form of unless it displays a currently valid OMB several opportunities for public Trafficking; Category 2—Technical control number. comments. Additional information Assistance and Training; and Category about the review of nominations for the 3—Information Discovery for National Part I: Background Eleventh RoC, including the date and Outreach/Educational Campaign. Since 1994, ORR has provided location of the public meeting of the DATES: July 31, 2002 is the closing date assistance for social services to meet the NTP Board of Scientific Counselors RoC for all categories. Please note that all needs of newly arriving refugees Subcommittee and the deadline for applications must be received (as through a standing announcement. In submission of public comments for opposed to postmarked) in ACF by this May 2001, ORR modified that consideration at that review, will be date or they will be considered late. announcement to include services to announced through future Federal Announcement Availability: The victims of a severe form of trafficking. Register and NTP list-server notices. program announcement and the However, in February 2002, ORR further application materials are available from modified Category 3 of the existing Background Information about the RoC Jay Womack and Neil Kromash, Office standing announcement by removing The RoC is an informational, of Refugee Resettlement (ORR), 370 services to victims of a severe form of scientific, and public health document L’Enfant Promenade SW, Washington, trafficking in order to proceed with a that identifies and discusses agents, DC 20447 and from the ORR website at: new and separate announcement substances, mixtures, and exposure www.acf.hhs.gov/programs/orr specifically aimed at promoting circumstances that may pose a FOR FURTHER INFORMATION CONTACT: For awareness about human trafficking and addressing the service needs of victims carcinogenic hazard to human health. all categories, contact Jay Womack, of a severe form of trafficking. That The report is prepared biennially in (202) 401–5525, [email protected] notice of modification was published in response to section 301 of the Public or Neil Kromash, (202) 401–5702, the Federal Register on February 8, Health Service Act, as amended. The [email protected]. 2002 (67 FR 6048). NTP welcomes nominations for listing SUPPLEMENTARY INFORMATION: This This new Announcement establishes in or changing the current listing in the program announcement consists of four a new set of three categories designed to RoC at any time. Additional information parts: increase awareness about trafficking in about the nomination process, the Part I: Background, legislative authority, persons and provide assistance to criteria for listing a nomination in the funding availability, CFDA Number, victims of a severe form of trafficking. RoC, and the formal multi-step review eligible applicants, project and budget process for nominations is available on periods, and for each of the three Legislative Authority the NTP Web site (http://ntp- categories—program purpose and These grants are authorized by three server.niehs.nih.gov, select Report on objectives, allowable and non- provisions of law: section 107(b)(1)(B) of Carcinogens) or from Dr. Jameson at the allowable activities, and review the Trafficking Victims Protection Act of address provided above. criteria. 2000 (TVPA), section 412(c)(1)(A) of the

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Immigration and Nationality Act (INA) and/or Services for Victims of a Severe three-year project period, will be (8 U.S.C. 1522(c)(1)(A)), as amended, Form of Trafficking ranging from entertained in subsequent years on a and section 106(b) of the TVPA. $50,000 to $250,000 for a total of up to noncompetitive basis, subject to Section 107(b)(1)(B) of the TVPA, $2,500,000; renewable on a yearly basis availability of funds, satisfactory Pub. L. 106–386, Division A, 114 Stat. for up to 3 years, subject to availability progress of the grantee and a 1464 (2000), provides that ‘‘[federal of funds; one grant under Category 2— determination that continued funding agencies] shall expand benefits and Technical Assistance and Training would be in the best interest of the services to victims of severe forms of ranging from $300,000 to $500,000 for a Government. trafficking in persons in the United total of up to $500,000 per year, States, without regard to the renewable on a yearly basis for up to 3 Category 1—Local/Community immigration status of such victims.’’ years, subject to availability of funds; Outreach and/or Services for Victims of Section 107(b) of the TVPA also and one grant under Category 3— a Severe Form of Trafficking provides that individuals who are Information Discovery for National Purpose and Objectives determined to be victims of a severe Outreach/Educational Campaign for a form of trafficking will be issued a total of up to $900,000 per year, The purpose of Category 1, Local/ certification letter (for adults) or renewable on a yearly basis for up to 3 Community Outreach and/or Services eligibility letter (for minors under the years, subject to availability of funds. for Victims of a Severe Form of age of 18) from the U.S. Department of The Director reserves the right to Trafficking, is multifaceted. It combines Health and Human Services (HHS). In award less or more than the funds the need to increase local/community conducting a benefits eligibility described in this announcement. In the awareness about the burgeoning determination for a victim of a severe absence of worthy applications the problem of human trafficking with the form of trafficking, benefit-granting Director may decide not to make an need to provide resources that will agencies should accept the HHS award if deemed in the best interest of address the needs of individuals certification letter or HHS eligibility the government. Funding availability for determined to be victims of a severe letter for minors in lieu of future years is at the Director’s form of trafficking. Category 1 documentation from the Immigration discretion. applications may choose to concentrate and Naturalization Service and as proof CFDA Number—93.598 exclusively on one of these two areas, or of a status that confers eligibility for focus more comprehensively on a benefits. Eligible Applicants combination of activities that Section 412(c)(1)(A) of the INA In Categories 1 and 2 public and incorporates both. authorizes the Director ‘‘to make grants private nonprofit organizations, to, and enter into contracts with, public including faith-based organizations, are Local/Community Outreach or private nonprofit agencies for projects eligible to apply for these grants (see The emphasis on Category 1 is to specifically designed—(i) to assist § 412(c) of the INA). ORR expects that provide state and local law enforcement, refugees in obtaining the skills which applicants will coordinate with other public and private service providers, are necessary for economic self- local organizations in considering non-governmental organizations, sufficiency, including projects for job projects and proposing services. In immigrant and refugee communities, training, employment services, day care, Category 3, any entity is eligible to and individual community members professional refresher training, and apply (see section 106(b) of the TVPA), with opportunities to learn about the other re-certification services; (ii) to although HHS funds may not be paid as Trafficking Victims Protection Act of provide training in English where profit to any recipients even if the 2000 (TVPA). The TVPA has presented necessary (regardless of whether the recipient is a commercial organization an unprecedented opportunity to refugees are employed or receiving cash (45 CFR 74.81). address the previously hidden problem or other assistance); and (iii) to provide Any private nonprofit organization of human trafficking. However, where specific needs have been shown submitting an application must submit knowledge of the TVPA is limited and recognized by the Director, health proof of its nonprofit status at the time among service professionals, law (including mental health) services, of submission. A nonprofit agency can enforcement agencies, and the general social services, educational and other accomplish this by providing a copy of public. Knowledge of benefits available services.’’ the applicant’s listing in the Internal to victims is similarly limited, Section 106(b) of the TVPA provides: Revenue Service’s (IRS) most recent list especially among groups that do not ‘‘The President, acting through the of tax-exempt organizations described in normally access benefits or have Secretary of Labor, the Secretary of section 501(c)(3) of the IRS code or by connections with benefit-providing Health and Human Services, the providing a copy of the currently valid agencies and organizations. Attorney General, and the Secretary of IRS tax exemption certificate. State, shall establish and carry out An applicant may submit more than Educational opportunities need to be programs to increase public awareness, one application under this extended to these groups to allow them particularly among potential victims of announcement, but must apply to learn about the existence of human trafficking, of the dangers of trafficking separately for each category. trafficking within the United States and and the protections that are available for to recognize trafficking, particularly in Project and Budget Periods victims of trafficking. their local communities. Integral in This announcement is inviting these outreach activities should be Funding Availability applications in Categories 1, 2, and 3 for familiarity with the legal definition of In FY 2002, ORR expects to award an project periods of up to three years. ‘‘severe forms of trafficking in persons’’ estimated $3.9 million in funds that Awards, on a competitive basis, will be as described in the TVPA. were appropriated to carry out the for a one-year budget period although Subsequently, a clear understanding Trafficking Victims Protection Act of project periods may be up to three years. should be established of the criteria 2000. ORR expects to make Applications for continuation grants necessary to qualify as a victim of a approximately 8–10 grants under funded under these awards, beyond the severe form of trafficking for benefits Category 1—Local/Community Outreach one-year budget period but within the and services purposes.

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Once trafficking victims have been victims of a severe form of trafficking • Temporary housing for young identified, organizations must be within their community and/or a adults with limited experience living in empowered to provide victims with reasonable assumption that there may families; additional information and resources to be additional unidentified victims in • Independent living skills and access services available to them. Law that community. cultural orientation; • enforcement agencies that have contact This grant program is intended to Access to appropriate educational with immigrant or refugee populations support services that address the special programs; • must also be educated to look below the conditions of victims of a severe form of Legal assistance/referrals and surface of people’s circumstances in trafficking. ORR’s expectation is that administrative costs (excluding T-visa such areas as prostitution and application fees and/or attorney fees). victims of trafficking will most likely, • immigrant labor. Service providers need after a brief period of time, access Case management, to include to learn about the varied backgrounds mainstream services. Therefore, grantees information and referral to needed from where the victims come and most should view these resources as a services in the community, either importantly the unique issues that temporary solution. funded refugee services or mainstream services as appropriate; trafficking victims will present According to post award • Special mental health services, such following their emancipation. requirements, grantees are expected to Organizations must establish that as trauma counseling, and file periodic program reports. In the last within their geographic locality/area • Other services needed to bridge the two Program Performance Reports, there is a reasonable expectation that time between the certification or grantees will discuss the transition of victims of a severe form of trafficking eligibility date indicated directly on the services indicating whether the services may be identified. Successful applicants Department’s letter, and the receipt of are now supported by the State, other will consider which services need to be public benefits and support services. public or private resources, or are no enhanced or increased in light of Applicants focusing on Services to longer needed. These reports must increased community awareness of Victims of a Severe Form of Trafficking provide supporting information on the trafficking. should indicate how they will ensure ORR is interested in providing impact of the services provided to the that services are appropriate and resources for organizations to cover the target population. accessible both linguistically and costs of reaching out to community- Allowable Activities culturally. based organizations so that victims are Non-Allowable Activities identified where they have the best Local/Community Outreach chance for receiving assistance. In turn, Allowable activities for local/ Funds will not be awarded to communities where outreach and community outreach include hosting applicants for the purpose of engaging educational opportunities are being community forums (including in activities of a distinctly political extended may experience an increase in coordination and facilitation of outreach nature, activities designed exclusively the numbers of victims being identified events) to raise general awareness about to promote the preservation of a specific and requesting services. the problem of trafficking in their local cultural heritage, or activities with an community. In addition, applicants international objective (i.e., activities Services to Victims of a Severe Form of related to events in the refugees’ country Trafficking should emphasize the development of advertising and marketing anti- of origin). Through Category 1, Services to trafficking materials that reflect the Victims of a Severe Form of Trafficking, Review Criteria broad scope of the various forms of ORR seeks to provide resources that will 1. Objectives and Need—Local/ trafficking (including debt bondage, address the needs of individuals Community Outreach—The applicant peonage, forced labor and forced determined to be victims of a severe demonstrates a clear understanding of prostitution) and that are linguistically form of trafficking. Victims must be the the population to be served. The and culturally accessible, appropriate, recipients of a certification or eligibility conditions in proposed communities are and sensitive. letter from HHS in order to gain access clearly described, including the to this assistance. We believe that Applications focusing on Local/ reasonable expectation of identifying enhanced case management, education, Community Outreach should indicate trafficking victims within the culturally and linguistically appropriate approximate timelines for development, community. The need for additional linkages and coordination with other dissemination, and review of actions information leading to enhanced service providers contribute to the presented to measure the effectiveness acknowledgment of trafficking is overall well-being of trafficking victims. of the communication. documented. The applicant provides Victims may also require initial Services to Victims of a Severe Form of anecdotal evidence that there are assistance accessing refugee and/or Trafficking enough people and/or organizations that mainstream services for which they are would benefit from this type of eligible. The services funded through Allowable activities for Services to outreach/educational opportunity. Category 1 should enhance the Victims of a Severe Form of Trafficking Services for Victims of a Severe Form of likelihood of victims of a severe form of are restricted solely to individuals who Trafficking—The applicant trafficking receiving needed support as are the recipients of a certification (for demonstrates a clear understanding of they work with the criminal justice adults) or eligibility (for minors) letter the population to be served. The system to assist in the investigation and from HHS. Some of the services needed number of projected victims of prosecution of trafficking crimes. In all for victims of a severe form of trafficking trafficking to be served is reasonable in instances, activities must be designed to might include: light of the organization’s capacity. The • supplement, rather than supplant, the Special medical care that is not application proposes to address a existing array of refugee services otherwise available to the individual; program of services for victims of available in the community. • Assistance with temporary trafficking. (25 points) An applicant should provide transportation needs; 2. Results or Benefits Expected—The anecdotal evidence that there have been • Temporary housing; applicant clearly describes the results

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and benefits to be achieved. The qualifications of project staff, both including the legislative background, application clearly describes how the applicant and affiliate agencies, as well programmatic impact, technical details specific target population will benefit as any volunteers, are documented. The of the Act, and the processes that enable from proposed services, e.g., enhanced applicant has provided a copy of its victims to receive certain types of case management, special medical care, most recent audit report. (10 points) benefits. Additional background referrals and follow-up with culturally 5. Budget and Budget Justification— regarding the history of trafficking prior and linguistically appropriate The budget and narrative justification to the TVPA, including precipitating mainstream providers. Results or are reasonable, clearly presented, and factors to the enactment of the law, will benefits are described also in terms of cost-effective in relation to the proposed also provide a better understanding of the opportunities provided for victims, activities and anticipated results. The the potential impact of the TVPA for benefit-providing agencies, and law applicant clearly indicates how awarded both victims and service providers. enforcement. The application describes funds will complement other To ensure that service organizations, how the impact of the funds will be community outreach efforts and/or law enforcement agencies and others measured on key indicators associated social services to achieve the objectives. have all the necessary information that with the purpose of the project. Planning for continuation of services enables them to provide assistance to Proposed outcomes are measurable and beyond the project period is realistic. victims, the development of research achievable within the grant project (15 points) and background materials is critical. As period, and the proposed monitoring resources and information continue to and information collection is adequately Category 2—Technical Assistance and be developed, these resources need to be planned. (25 points) Training disseminated to ensure that the growing 3. Approach—The strategy and plan, Purpose and Objectives base of knowledge can be used to create including a description of each This program is to provide technical effective and lasting programmatic proposed community and an assessment and issue-specific assistance and advances for victim assistance. of appropriateness of activities, are We expect that applicants to this training to organized groups, likely to achieve proposed results. The program category will have strong organizations, and individuals regarding proposed activities and timeframes are knowledge of and demonstrate the background and impact of the reasonable and feasible. The plan significant experience working with TVPA, with specific emphasis on the describes in detail how the proposed victims of a severe form of trafficking in provision of benefits as it relates to the activities will be accomplished as well areas including direct services, legal needs of trafficking victims. The as the potential for the project to assistance referrals, and case program is also aimed at providing and generate additional interest in outreach management. to victim populations and coordination disseminating research and resources with other services. The application for benefit-issuing agencies, law Allowable Activities includes a clear and comprehensive enforcement agencies, and others ORR will accept applications under description of the communities relating to issues of trafficking in this announcement for projects that proposed and how they will be persons. propose services that enhance the impacted by this project. Assurance is We believe that strong technical knowledge base and service ability of provided that proposed services will be assistance for the provision of benefits other potential grantees, current delivered in a manner that is is needed by organizations and grantees, law enforcement agencies, linguistically and culturally appropriate individuals that have limited experience benefit-issuing agencies and other to the target population. The applicant working with victims of a severe form concerned populations who are working has described the planning consultation of trafficking. Victims of a severe form with or may be working with victims of efforts undertaken. Where coalition of trafficking have distinct and acute a severe form of trafficking. partners are proposed, the applicant needs for assistance that may differ from Specific activities may include: describes each partner agency’s the needs of other refugees. Programs • Educational outreach. Serving as a respective role and financial targeted at domestic victims of crime are consulting partner to other ORR responsibilities and describes how the not necessarily prepared to address the trafficking grantees. Providing technical coalition will enhance the specific needs of trafficking victims guidance to other agencies regarding accomplishment of the project goals. (e.g., culturally appropriate and benefits and services available to Evidence of commitment of coalition sensitive trauma counseling, language victims of a severe form of trafficking partners in implementing the activities translation, legal and immigration and the travel associated with this is demonstrated, i.e., by Memoranda of process referrals). Likewise, many activity. Understanding (MOUs) among refugee benefit-issuing organizations do • Meetings and conferences. Hosting participants. Assurance is provided that not have experience in identifying the educational events to disseminate proposed services will be delivered in a needs of a trafficking victim as distinct information on victim services and manner that is linguistically and from the needs of other refugee methodologies. Participation in national culturally appropriate to the target populations. or international meetings and population. (25 points) The target audience requires guidance conferences that may contribute to 4. Organizational Profiles—The on: The types of benefits and services capacity development and knowledge administrative and management features available to victims; barriers to victims base on trafficking, and otherwise of the project, including a plan for fiscal receiving benefits; successful enhance collaborative activities. and programmatic management of each methodologies to ensure that victims (Note—all international travel must be activity and planning activities, are access benefits and services available to approved in advance by ORR project described in detail with proposed start- them; and how to provide case officer.) up times, ongoing timelines, major assessments (needs assessments) of • Clearing house of information. milestones or benchmarks, a victims, including how to conduct Development of a library of resources to component/project organization chart, clinical assessments. be made available to other organizations management of affiliates, and a staffing Organizations and individuals also and individuals. Development of an chart of affiliate network. The need to learn more about the TVPA internet web site which could include

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chat, resources, links, or community within the first year of the grant. resultant information will be used as the bulletin boards. Providing and Proposed quantitative outcomes are basis for an array of culturally facilitating information exchange among tangible and achievable within the grant appropriate Public Service various contributors. project period and the proposed Announcements (PSAs) designed to • Consultation/mentoring services. monitoring and information collection increase the number of victims Providing specific issue guidance/ are adequately planned. (25 points) identified and encourage the advice to other agencies working on 3. Approach—The strategy and plan development and implementation of anti-trafficking initiatives. are likely to achieve the proposed additional programs intended to protect • Curriculum development and results; the proposed activities and and care for victims of severe forms of dissemination. Development of written timeframes are reasonable and feasible. trafficking. protocols for handling trafficking cases The plan describes in detail how the There is a critical need for and directing victims to available proposed activities will be information discovery regarding public benefits. accomplished as well as the awareness of trafficking, of provisions of Acceptable applications will include coordination with any other services. the Trafficking Victims Protection Act of the development of curricula that can be Assurance is provided that proposed 2000 (TVPA), and identification of disseminated to other organizations. services will be delivered in a manner factors that encourage victims to come Curricula should follow the above that is linguistically and culturally forward to access protection and objectives and address the provision of appropriate to the target population. services. Given the relatively recent benefits, methodologies for successful Where coalition partners are proposed, passage of this legislation and the implementation, as well as follow-up the applicant describes each partner TVPA’s impact upon the welfare of resource development. Included in the agency’s respective role and financial trafficking victims, ORR believes it is development process should be responsibilities; and describes how the important for this information to be allowances for training other coalition will enhance the gathered and analyzed without delay in organizations on the curricula and accomplishment of the project goals. order to identify and assist additional follow-up as needed. The applicant has described the victims. Non-Allowable Activities planning consultation efforts In comparison to other immigrant undertaken. Evidence of commitment of Funds will not be awarded to populations (i.e., refugees or asylees) coalition partners in implementing the applicants for the purpose of engaging trafficking victims are a population activities is demonstrated, i.e., by in activities of a distinctly political about whom relatively little is known. Memoranda of Understanding (MOUs) nature, activities designed exclusively Due to the nascent nature of the TVPA, among participants. (25 points) to promote the preservation of a specific there is a relatively small number of 4. Organizational Profiles—Individual cultural heritage, or activities with an victims who have been made eligible to organization staff including volunteers international objective (i.e., activities receive certain federal or state funded or are well qualified. The administrative related to events in the trafficking administered benefits. While there is a and management features of the project, victims’ country of origin). growing amount of anecdotal evidence including a plan for fiscal and about the needs of trafficking victims Review Criteria programmatic management of each and their access to benefits, this 1. Objectives and Need—The activity, are described in detail with evidence may not accurately reflect the applicant demonstrates a clear proposed start-up times, ongoing range of victim needs. For example, understanding of the population to be timelines, major milestones or trafficking victims may require served through significant/extensive benchmarks, a component/project immediate, secure, and confidential experience working with victims of a organization chart, and a staffing chart. contact with law enforcement agencies severe form of trafficking. The applicant The applicant has provided a copy of its while other immigrant populations may demonstrates clear training and most recent audit report. (15 points) not. We need more information to fully advocacy experience through 5. Budget and Budget Justification— estimate the level of public awareness of quantitatively demonstrated experience The budget and narrative justification trafficking and the factors that may with trafficking victims of various are reasonable, clearly presented, and encourage victims to come forward to cultural, linguistic, and experiential cost-effective in relation to the proposed utilize available benefits and services. background. The applicant has activities and anticipated results. It is also important to describe how experience with case assessment and Planning for any costs for publication, victims interact with community creating links to law enforcement printing, dissemination, and similar organizations and service providers. agencies, benefit issuing agencies, non- costs are reasonable and comprehensive. Many of these organizations currently profit organizations and others. The (10 points) play a vital role in identifying and application proposes to address a Category 3—Information Discovery for providing support to trafficking victims program of services for victims of National Outreach/Educational and may be called upon for additional trafficking. (25 points) Campaign support. For example, organizations that 2. Results or Benefits Expected—The are the front line service providers at application clearly describes how the Purpose and Objectives hospitals, clinics, or domestic violence specific target population will benefit The purposes of this project are: (A) shelters may not realize that many of the from proposed services, e.g., enhanced To determine the extent of community people they have assisted are actually case management ability, increased awareness regarding the problem of trafficking victims. Similarly, capacity to create referrals, and follow- human trafficking among both the community organizations (e.g., mutual up with culturally and linguistically general United States population and assistance associations) and religious appropriate mainstream providers. Any the organizations that serve victims; and institutions can play an important role curricula developed can be used as key (B) to better understand the successful in the lives of trafficking victims. This resource to be shared throughout the approaches that might encourage project will seek to improve our country and provided in conjunction victims to come forward for understanding of those roles and how with at least three (3) training sessions identification and assistance. The they are affected by the TVPA.

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Allowable Activities • Role of Community Organizations. the research project including what What role(s) do community research questions will be answered and Grantee Responsibilities organizations have in identifying what methodology the Grantee will 1. The Grantee should propose a trafficking victims? What type (e.g., employ to answer the questions. Federal project work plan that describes housing, security, medical, clothing, personnel will have the opportunity to conditions within the topic areas etc.) and how much assistance do provide input and suggestions in these underlined below. The project should trafficking victims receive from those areas. If applicable, the Federal Project explore the knowledge and community organizations, including Officer should be invited to participate relationships among trafficking victims religious institutions? How have these in other meetings in which the Grantee (including child and elderly victims), organizations helped victims access is involved during discussions regarding service providers, and community public benefits to which victims may be critical aspects of the project with other organizations within each topic. eligible under the TVPA? funding sources. Questions listed next to each topic Special consideration will be given to 5. After consultation, the Grantee suggest the type of information in which applications that demonstrate a should submit a final work plan that is ORR has particular interest. concerted effort to examine based on any updates to the work plan • Trafficking Awareness. What level organizations and individuals who are submitted in the original application. of awareness does the general reaching out to victims of severe forms The plan should: community exhibit? How are of trafficking and pursuing actions that (a) Include a complete list of research communities and individual community encourage victims to come forward. questions the project will answer and members currently being educated Applicants should focus on at least two the variables that will be used to answer about the existence of trafficking? How communities with high densities of each question. These variables could are trafficking victims being educated trafficking victims. include (but are not limited to) about the crime of human trafficking? The applicant’s proposal should also immigration status and demographic What information has been seek to answer the relevant questions information for all victims, including disseminated? What have community above from the standpoint of victims, income level and source; type of members identified as areas in need of service providers, and community victimization; benefit eligibility and increased knowledge or awareness? organizations. The methodology for history, employment history; and health What are the successful approaches to accomplishing this approach is at the status. encouraging victims to come forward? discretion of the grantee; however, (b) Identify and describe the many organizations that initially come • Victim Identification. Who are the methodology used to gather information into contact with victims may be first to come into contact with victims? on trafficking with respect to these excellent sources of information. These How are victims identified as victims variables and the analysis to be could include, but are not limited to, (e.g., victim determination) and who performed. hospitals, clinics, police and other law does this? How much information do (c) Identify how the proposed enforcement agencies, immigrant- these organizations/groups have variables and data sets will be used by serving community-based organizations, the Grantee to answer the research regarding the TVPA? What connection, social service providers, child care if any, do they have with other questions described in the work plan. facilities, and public health authorities. (d) Identify important questions/ providers? Information from these organizations issues for which data currently are not • Victim Assistance. To what extent should describe the relationship available, and strategies for dealing with is the community aware of assistance between trafficking victims and the this lack of data when it pertains to the that may be made available to victims? community, the types of support research questions in the work plan. How are services being directed to community organizations provide to (e) Identify how the confidentiality victims? What actions have been taken immigrant families, and, to the extent will be protected of any research or are planned to expand these services? possible, any outreach efforts being subjects involved in the project. What is the demand for community- undertaken. (f) Describe the results that will be based assistance (including food, 2. Category three of this produced and construct examples of medical, and mental health services)? announcement is the only category that tables illustrating how these results will To what sources do victims turn in will be a cooperative agreement. In the be presented. order to meet their needs? spirit of the cooperative agreement, the (g) Identify steps to coordinate with • Employment. What type of Grantee should provide monthly any federal or contractor staff assigned employment do victims pursue updates to inform the Federal Project responsibility for designing and following their emancipation? How long Officer of research developments and implementing the national outreach/ do they stay in their jobs? What level of the status of project activities. educational campaign. wages do victims receive and how much 3. With input from the Federal Project 6. Once initial analyses have been do they receive in total earnings? What Officer, the Grantee should select an conducted, the Grantee should meet fringe benefits do victims receive from Advisory Panel to provide guidance in with relevant federal personnel in their employers? What are the child care project development. The Advisory Washington, DC to discuss preliminary arrangements for employed trafficking Panel may participate in subsequent findings and the format for the final victims? meetings between the Federal Project report. In the spirit of a cooperative • Victims’ Income. What are victims’ Officer and the Grantee. The Grantee agreement, the Grantee should work sources of income following their may be responsible for the Advisory with federal personnel to determine the emancipation and how much do they Panel’s travel and related expenses, if need for additional collection or receive from each source? What is the any. analysis of information. ratio of assistance to total income? What 4. Prior to completion of the work 7. After completing their analysis, the types of assistance and services are plan (analysis plan), the Grantee should Grantee will prepare a final report received and from whom (e.g., public or meet with relevant Federal personnel in describing the procedures used to gather private service providers, friends, Washington, DC to discuss the information and conduct the analysis, family)? preliminary methodology and design of barriers encountered in completing the

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project and the results of their analysis. topics listed in this announcement and the project is suitable. The applicant has A draft of this report should be answers to these questions will experience coordinating and sequencing delivered to the Federal Project Officer effectively describe the status of tasks with other organizations. Special before the completion of the project. trafficking victims, their communities consideration will be given to The Federal Project Officer will return and the organizations that serve them. applicants that collaborate with comments on the draft report to the The applicant demonstrates a clear organizations that frequently work with Grantee and a final report that reflects understanding of the populations to be immigrant populations. The applicant the comments of the Federal Project researched through significant/extensive has pledged and shown ability to work Officer should be delivered to the knowledge of the issues of severe forms in collaboration with other Grants Officer before the completion of of trafficking in persons and the effect organizations in search of similar goals. the project. The report should be upon victims. The applicant The applicant has demonstrated provided to the Grants Officer both in demonstrates clear research experience capacity to work with a range of hard copy and on 3.5″ floppy disk in a through quantitatively demonstrated government agencies. The format that is agreed upon by both experience with trafficking victims of administrative and management features parties. various cultural, linguistic, and of the project, including a plan for fiscal 8. Following the completion of the experiential backgrounds. The applicant and programmatic management of each final report, the Grantee should conduct has experience with creating links to activity, are described in detail with a briefing in Washington, DC for federal law enforcement agencies, benefit proposed start-up times, ongoing personnel regarding the results of the issuing agencies, non-profit timelines, major milestones or analyses. The Grantee should be organizations and others. The benchmarks, a component/project responsible for assembling and copying application proposes to develop organization chart, and a staffing chart. any necessary briefing materials. The information to be used to design and The applicant has provided a copy of its briefing should take place before the execute a national outreach and most recent audit report. (20 points) completion of the project. educational program with the goal of 5. Budget and Budget Justification— 9. The Grantee will make data and increasing public awareness about The budget and narrative justification analysis completed as a result of this human trafficking. (25 points) are reasonable, clearly presented, and project available to the research 2. Results or Benefits Expected— cost-effective in relation to the proposed community and the government. Information and data are developed and activities and anticipated results. provided that will allow PSA creator(s) Planning for any costs for information ORR Responsibilities to choose and target specific geographic research, dissemination, and similar ORR will: media markets on the problem of human costs (e.g., travel) are reasonable and 1. Provide input into the final work trafficking. (25 points) comprehensive. Applications should plan, including methodology, analysis, 3. Approach—Information gathering include separate estimates for each of and dissemination plan. supplements (rather than duplicates) the three years, if funding levels are 2. Provide consultation and technical studies already underway by the federal expected to be substantially different in assistance in planning and operating government, including research on subsequent years. (10 points) current and/or effective public program activities. Part II: The Review Process 3. Work with the Grantee to resolve awareness strategies for victims of any methodological or analytical issues. trafficking. Methodology is appropriate, Intergovernmental Review—This 4. Assist in the transfer of information sound, and cost-effective, including the program is covered under Executive to appropriate federal, state and local research design, statistical techniques, Order 12372, ‘‘Intergovernmental entities, including any PSA analytical strategies, selection of Review of Federal Programs,’’ and 45 developer(s). existing data sets, and other procedures. CFR part 100, ‘‘Intergovernmental 5. Review Grantee activities and Sites selected for the study have a Review of Department of Health and provide feedback to ensure that concentration of previously identified Human Services Programs and objectives and award conditions are trafficking victims, diverse demographic Activities.’’ Under the Order, States may being met. ORR retains the right to victim populations (i.e. country of design their own processes for withhold future year funding if origin, types of identified trafficking reviewing and commenting on proposed technical performance requirements are crimes—sexual exploitation, federal assistance under covered not met. involuntary domestic servitude, forced programs. labor, etc.), and diverse levels of local • All States and Territories except Non-Allowable Activities service provision. Alabama, Alaska, Arizona, Colorado, Funds will not be awarded to The proposed methodology accurately Connecticut, Hawaii, Idaho, Indiana, applicants for the purpose of engaging describes victims’ status as suggested by Kansas, Louisiana, Massachusetts, in activities of a distinctly political the topics listed in this announcement, Minnesota, Montana, Nebraska, New nature, activities designed exclusively as well as the interaction between Jersey, New York, Ohio, Oklahoma, to promote the preservation of a specific victims, their communities and service Oregon, Pennsylvania, South Dakota, cultural heritage, or activities with an providers. To the extent that projects Tennessee, Vermont, Virginia, international objective (i.e., activities seek to examine the impact of the Washington, Wyoming, and Palau have related to events in the refugees’ country TVPA, the applicant’s proposed elected to participate in the Executive of origin). methodology reliably attributes impacts. Order process. Applicants from these (20 points) twenty-seven jurisdictions need take no Review Criteria 4. Organizational Profiles—Project action regarding E.O. 12372. Applicants 1. Objectives and Need for personnel are well qualified to conduct for projects to be administered by Assistance—The objectives and the proposed research, as evidenced by Federally-recognized Indian Tribes are anticipated results of the proposed their professional training and also exempt from the requirements of project will advance policy knowledge experience. The capacity of the E.O. 12372. Applicants should contact and development. The proposed organization to provide the their Single-Points-of-Contact (SPOC) as research questions address the required infrastructure and support necessary for soon as possible to alert them of the

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prospective applications and receive Part III: The Application 4h Floor, Aerospace Building, 901 D any necessary instructions. Applicants In order to be considered for a grant Street, SW., Washington, DC 20447 from participating jurisdictions must under this program announcement, an between Monday and Friday (excluding submit any required material to the application must be submitted on the federal holidays). The address must SPOCs as soon as possible so that the forms supplied and in the manner appear on the envelope/package program office can obtain and review prescribed by ACF. Selected elements of containing the application with the note SPOC comments as part of the award the ACF Uniform Project Description ‘‘Attention: Grants Management process. The applicant must submit all (UPD) relevant to this program Officer.’’ (Applicants are cautioned that required materials, if any, to the SPOC announcement are attached as express/overnight mail services do not always deliver as agreed.) and indicate the date of this submittal Appendix A. ACF cannot accommodate (the date of contact) on the Standard Application Forms—Applicants transmission of applications by fax or Form 424, item 16a. requesting financial assistance under through other electronic media. Under 45 CFR 100.8(a)(2), a SPOC has this announcement must file the Therefore, applications transmitted to 60 days from the application deadline to Standard Form (SF) 424, Application for ACF electronically will not be accepted comment on proposed new or Federal Assistance; SF 424A, Budget competing continuation awards. regardless of date or time of submission Information—Non-construction and time of receipt. SPOCs are encouraged to eliminate Programs; SF 424B, Assurances—Non- the submission of routine endorsements The federal government has Construction Programs. The forms may experienced periodic delays in mail as official recommendations. be reproduced for use in submitting Additionally, SPOCs are requested to delivery through the U.S. Postal Service applications. Application materials since fall 2001. In some instances, mail clearly differentiate between mere including forms and instructions are advisory comments and those official has been delayed up to or over four also available from the Contact named months. To ensure that ACF receives State process recommendations which in the preamble of this announcement. your application by the (4:30 p.m. may trigger the ‘‘accommodate or Application Submission and Eastern Time Zone) July 31, 2002 explain’’ rule. Deadlines—An application with an deadline, you may wish to send your When comments are submitted original signature and two clearly application via an express mailing directly to ACF, they should be identified copies are required. service. Also, please send an electronic addressed to: Grants Management Applicants must clearly indicate on the notification that you have sent an Officer, U.S. Department of Health and SF 424 the Category under which the application to Jay Womack at Human Services, Administration for application is submitted. [email protected] and Neil Kromash Children and Families, Office of Refugee The closing date for receipt of at [email protected]. Resettlement, 370 L’Enfant Promenade applications is (4:30 p.m. Eastern Time Late applications: Applications that SW., 4th floor, Washington DC 20447. Zone) July 31, 2002. Please note that all do not meet the criteria above are A list of the Single Points of Contact applications must be received in ORR considered late applications. ACF shall for each participating State and (as opposed to postmarked) by the notify each late applicant that its Territory can be found on the web at: closing date. Mailed and hand-carried application will not be considered in http://www.whitehouse.gov/omb/ applications received after the 4:30 p.m. the current competition. index.html. (Eastern Time Zone) deadline on the Extension of deadlines: ACF may Initial ACF Screening—Each closing date will be classified as late. extend application deadlines when application submitted under this Mailed applications shall be circumstances such as acts of God (e.g. program announcement will undergo a considered as meeting an announced floods, hurricanes, etc.) occur, or when pre-review to determine that (1) the deadline if they are either received on there are widespread disruptions of mail application was received by the closing or before the deadline time and date at service. Determinations to extend or date of July 31, 2002 and submitted in the: U.S. Department of Health and waive deadline requirements rest with accordance with the instructions in this Human Services, Administration for the Chief Grants Management Officer. announcement and (2) the applicant is Children and Families, Office of Grants For Further Information on eligible for funding. Management, Division of Discretionary Application Deadlines Contact: Grants Competitive Review and Evaluation Grants, Attention: Grants Management Management Officer, Administration for Criteria—Applications which pass the Officer, 370 L’Enfant Promenade SW., Children and Families, Office of Grants initial ACF screening will be evaluated 4th Floor, Washington, DC 20447. Management, Division of Discretionary and rated by an independent review Applicants are responsible for mailing Grants, 370 L’Enfant Promenade SW., panel on the basis of evaluation criteria applications well in advance to ensure 4th Floor, Washington, DC 20447, specified in Part I. The evaluation that applications are received on or Telephone: (202) 401–4577. criteria were designed to assess the before the deadline time and date. Certifications, Assurances, And quality of a proposed project, and to Applications hand-carried by Disclosure Required For Non- determine the likelihood of its success. applicants, applicant couriers, Construction Programs—Applicants The evaluation criteria are closely overnight/express mail couriers, or by must sign and return the disclosure related and are considered as a whole in other representatives on behalf of the form, if applicable, with their judging the overall quality of an applicant shall be considered as meeting applications. Applicants requesting application. Points are awarded only to an announced deadline if they are financial assistance for non-construction applications that are responsive to the received on or before the deadline date, projects must file the Standard Form evaluation criteria within the context of between the hours of 8 a.m. and 4:30 424B, ‘‘Assurances: Non-Construction this program announcement. p.m., EST, at the U.S. Department of Programs.’’ Applicants must sign and Applications received for each Health and Human Services, return the Standard Form 424B with Category will be scored and ranked only Administration for Children and their applications. within the Category designated on the Families, Office of Grants Management, Applicants must provide a signed SF 424, e.g. in one of the three program Division of Discretionary Grants, certification regarding lobbying with areas. Attention: Grants Management Officer, their applications, when applying for an

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award in excess of $100,000. Applicants maximum, and not necessarily a goal. which Federal funds are being requested. who have used non-federal funds for Application forms are not to be counted Supporting documents should be included lobbying activities in connection with in the page limit. where they can present information clearly receiving assistance under this Please do not include books or and succinctly. In preparing your project videotapes as they are not easily description, all information requested announcement shall complete a through each specific evaluation criteria disclosure form to report lobbying. reproduced and are, therefore, should be provided. Awarding offices use Applicants must make the appropriate inaccessible to the reviewers. this and other information in making their certification of their compliance with Part IV: Post-Award funding recommendations. It is important, the Drug Free Workplace Act of 1988. therefore, that this information be included By signing and submitting the Applicable Regulations—Applicable in the application. application, the applicant is providing DHHS regulations can be found in 45 General Instructions the certification and need not mail back CFR part 74 or 92. Treatment of Program Income— ACF is particularly interested in specific the certification with the application. factual information and statements of Applicants must make the appropriate Program income from activities funded measurable goals in quantitative terms. certification that they are not presently under this program may be retained by Project descriptions are evaluated on the debarred, suspended or otherwise the recipient and added to the funds basis of substance, not length. Extensive ineligible for an award. By signing and committed to the project, and used to exhibits are not required. Cross referencing submitting the application, the further program objectives. should be used rather than repetition. applicant is providing the certification Reporting Requirements—Grantees Supporting information concerning activities and need not mail back the certification are required to file the Financial Status that will not be directly funded by the grant Report (SF–269) semi-annually and the or information that does not directly pertain with the applications. to an integral part of the grant funded activity Program Performance Reports quarterly, should be placed in an appendix. General Instructions for Preparing a along with the Schedule C of the ORR FulL Project Description Pages should be numbered and a table of Quarterly Performance Report. Category contents should be included for easy The project description provides a Three grantees should note the reference. major means by which an application is additional requirements for the final evaluated and ranked to compete with Part II: General Instructions for Preparing a report noted under Category Three Full Project Description other applications for available Grantee Responsibilities above. assistance. The project description Funds awarded must be accounted Introduction should be concise and complete and for, and reported under, the distinct Applicants required to submit a full project should address the activity for which grant number ascribed. Although ORR description shall prepare the project federal funds are being requested. does not expect the proposed projects to description statement in accordance with the Supporting documents should be following instructions and the specified include evaluation activities, it does evaluation criteria. The instructions give a included where they can present expect grantees to maintain adequate broad overview of what your project information clearly and succinctly. records to track and report on project description should include while the Applicants are encouraged to provide outcomes and expenditures. The official evaluation criteria expands and clarifies information on their organizational receipt point for all reports and more program-specific information that is structure, staff, related experience, and correspondence is the Grants needed. other information considered relevant. Management Officer, Administration for Project Summary/Abstract Awarding offices use this and other Children and Families/Office of Grants Provide a summary of the project information to determine whether the Management, Division of Discretionary description (a page or less) with reference to applicant has the capability and Grants, 370 L’Enfant Promenade SW., the funding request. resources necessary to carry out the 4th Floor, Washington, DC 20447, Objectives and Need for Assistance proposed project. It is important, Telephone: (202) 401–4577. An original therefore, that this information be Clearly identify the physical, economic, and one copy of each report shall be social, financial, institutional, and/or other included in the application. However, submitted within 30 days of the end of problem(s) requiring a solution. The need for in the narrative the applicant must each reporting period directly to the assistance must be demonstrated and the distinguish between resources directly Office of Grants Management. principal and subordinate objectives of the related to the proposed project from A Final Financial and Program Report project must be clearly stated; supporting those that will not be used in support shall be due 90 days after the project documentation, such as letters of support and of the specific project for which funds expiration date or termination of federal testimonials from concerned interests other are requested. Please refer to the UPD budget support. than the applicant, may be included. Any relevant data based on planning studies sections in the appendix. Dated: May 13, 2002. Length of Applications—Each should be included or referred to in the endnotes/footnotes. Incorporate demographic application narrative should not exceed Nguyen Van Hanh, Director, Office of Refugee Resettlement. data and participant/beneficiary information, 20 pages in a 12-pitch font. Attachments as needed. In developing the project and appendices should not exceed 25 Appendix A—Uniform Project Description description, the applicant may volunteer or pages and should be used only to OMB No. 0970–0139 be requested to provide information on the provide supporting documentation such The project description is approved under total range of projects currently being as administration charts, position OMB control number 0970–0139 which conducted and supported (or to be initiated), descriptions, resumes, and letters of expires 12/31/03. some of which may be outside the scope of the program announcement. intent or partnership agreements. A Part I: The Project Description Overview Results or Benefits Expected table of contents and an executive Purpose summary should be included but will Identify the results and benefits to be not count in the page limitations. Each The project description provides a major derived. means by which an application is evaluated page should be numbered sequentially, and ranked to compete with other Approach including the attachments and applications for available assistance. The Outline a plan of action which describes appendices. This limitation of 20 pages project description should be concise and the scope and detail of how the proposed per category should be considered as a complete and should address the activity for work will be accomplished. Account for all

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functions or activities identified in the Letters of Support Equipment application. Cite factors which might Provide statements from community, Description: ‘‘Equipment’’ means an article accelerate or decelerate the work and state public and commercial leaders that support of nonexpendable, tangible personal property your reason for taking the proposed approach the project proposed for funding. All having a useful life of more than one year rather than others. Describe any unusual submissions should be included in the and an acquisition cost which equals or features of the project such as design or application OR by application deadline. exceeds the lesser of (a) the capitalization technological innovations, reductions in cost Budget and Budget Justification level established by the organization for the or time, or extraordinary social and financial statement purposes, or (b) $5,000. community involvement. Provide line item detail and detailed (Note: Acquisition cost means the net invoice calculations for each budget object class Provide quantitative monthly or quarterly unit price of an item of equipment, including identified on the Budget Information form. projections of the accomplishments to be the cost of any modifications, attachments, Detailed calculations must include accessories, or auxiliary apparatus necessary achieved for each function or activity in such estimation methods, quantities, unit costs, terms as the number of people to be served to make it usable for the purpose for which and other similar quantitative detail it is acquired. Ancillary charges, such as and the number of activities accomplished. sufficient for the calculation to be duplicated. When accomplishments cannot be quantified taxes, duty, protective in-transit insurance, The detailed budget must also include a freight, and installation shall be included in by activity or function, list them in breakout by the funding sources identified in or excluded from acquisition cost in chronological order to show the schedule of Block 15 of the SF–424. accordance with the organization’s regular accomplishments and their target dates. Provide a narrative budget justification that written accounting practices.) If any data is to be collected, maintained, describes how the categorical costs are Justification: For each type of equipment and/or disseminated, clearance may be derived. Discuss the necessity, requested, provide a description of the required from the U.S. Office of Management reasonableness, and allocability of the equipment, the cost per unit, the number of and Budget (OMB). This clearance pertains to proposed costs. units, the total cost, and a plan for use on the any ‘‘collection of information that is General project, as well as use or disposal of the conducted or sponsored by ACF.’’ equipment after the project ends. An List organizations, cooperating entities, The following guidelines are for preparing the budget and budget justification. Both applicant organization that uses its own consultants, or other key individuals who Federal and non-Federal resources shall be definition for equipment should provide a will work on the project along with a short detailed and justified in the budget and copy of its policy or section of its policy description of the nature of their effort or narrative justification. For purposes of which includes the equipment definition. contribution. preparing the budget and budget justification, Supplies Staff and Position Data ‘‘Federal resources’’ refers only to the ACF Description: Costs of all tangible personal Provide a biographical sketch for each key grant for which you are applying. Non- property other than that included under the person appointed and a job description for Federal resources are all other Federal and Equipment category. each vacant key position. A biographical non-Federal resources. It is suggested that Justification: Specify general categories of sketch will also be required for new key staff budget amounts and computations be supplies and their costs. Show computations as appointed. presented in a columnar format: First and provide other information which column, object class categories; second supports the amount requested. Organizational Profiles column, Federal budget; next column(s), non- Contractual Provide information on the applicant Federal budget(s), and last column, total organization(s) and cooperating partners such budget. The budget justification should be a Description: Costs of all contracts for as organizational charts, financial statements, narrative. services and goods except for those which audit reports or statements from CPAs/ Personnel belong under other categories such as equipment, supplies, construction, etc. Licensed Public Accountants, Employer Description: Costs of employee salaries and Identification Numbers, names of bond Third-party evaluation contracts (if wages. applicable) and contracts with secondary carriers, contact persons and telephone Justification: Identify the project director or recipient organizations, including delegate numbers, child care licenses and other principal investigator, if known. For each agencies and specific project(s) or businesses documentation of professional accreditation, staff person, provide the title, time to be financed by the applicant, should be information on compliance with Federal/ commitment to the project (in months), time included under this category. State/local government standards, commitment to the project (as a percentage Justification: All procurement transactions documentation of experience in the program or full-time equivalent), annual salary, grant shall be conducted in a manner to provide, area, and other pertinent information. Any salary, wage rates, etc. Do not include the to the maximum extent practical, open and non-profit organization submitting an costs of consultants or personnel costs of free competition. Recipients and application must submit proof of its non- delegate agencies or of specific project(s) or subrecipients, other than States that are profit status in its application at the time of businesses to be financed by the applicant. required to use Part 92 procedures, must submission. Fringe Benefits justify any anticipated procurement action The non-profit agency can accomplish this that is expected to be awarded without by providing a copy of the applicant’s listing Description: Costs of employee fringe benefits unless treated as part of an approved competition and exceed the simplified in the Internal Revenue Service’s (IRS) most indirect cost rate. acquisition threshold fixed at 41 U.S.C. recent list of tax-exempt organizations Justification: Provide a breakdown of the 403(11) currently set at $100,000. Recipients described in section 501(c)(3) of the IRS amounts and percentages that comprise might be required to make available to ACF code, or by providing a copy of the currently fringe benefit costs such as health insurance, pre-award review and procurement valid IRS tax exemption certificate, or by FICA, retirement insurance, taxes, etc. documents, such as request for proposals or providing a copy of the articles of invitations for bids, independent cost incorporation bearing the seal of the State in Travel estimates, etc. which the corporation or association is Description: Costs of project-related travel Note: Whenever the applicant intends to domiciled. by employees of the applicant organization delegate part of the project to another agency, Third-Party Agreements (does not include costs of consultant travel). the applicant must provide a detailed budget Justification: For each trip, show the total and budget narrative for each delegate Include written agreements between number of traveler(s), travel destination, agency, by agency title, along with the grantees and subgrantees or subcontractors or duration of trip, per diem, mileage required supporting information referred to other cooperating entities. These agreements allowances, if privately owned vehicles will in these instructions. must detail scope of work to be performed, be used, and other transportation costs and work schedules, remuneration, and other subsistence allowances. Travel costs for key Other terms and conditions that structure or define staff to attend ACF-sponsored workshops Enter the total of all other costs. Such the relationship. should be detailed in the budget. costs, where applicable and appropriate, may

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include but are not limited to insurance, DEPARTMENT OF HEALTH AND and scope, client eligibility, allowable food, medical and dental costs HUMAN SERVICES activities, and treatment of program (noncontractual), professional services costs, income. space and equipment rentals, printing and Administration for Children and Part II: General instructions for publication, computer use, training costs, Families preparing a full project description. such as tuition and stipends, staff Part III: The Review Process— development costs, and administrative costs. Refugee Microenterprise Development Intergovernmental review, initial ACF Justification: Provide computations, a Program screening, competitive review, and narrative description and a justification for review criteria. AGENCY: Office of Refugee Resettlement each cost under this category. Part IV: The Application— (ORR), ACF, DHHS. Indirect Charges Application materials, application ACTION: Notice of availability of FY 2002 submission information, regulations, Description: Total amount of indirect costs. social services discretionary funds for and reporting. This category should be used only when the refugee microenterprise development Paperwork Reduction Act of 1995 applicant currently has an indirect cost rate projects. (Pub. L. 104–13): Public reporting approved by the Department of Health and burden for this collection of information SUMMARY: Human Services (HHS) or another cognizant The Office of Refugee is estimated to average 25 hours, Federal agency. Resettlement (ORR) invites eligible including the time for reviewing Justification: An applicant that will charge entities to submit competitive grant instructions, gathering and maintaining indirect costs to the grant must enclose a applications for microenterprise the data needed, and reviewing the 1 copy of the current rate agreement. If the development projects for refugees. collection of information. The following applicant organization is in the process of Applications will be accepted pursuant information collections are included in initially developing or renegotiating a rate, it to the Director’s discretionary authority the program announcement: OMB should immediately upon notification that an under section 412(c) of the Immigration Approval No. 0970–0139, ACF Uniform award will be made, develop a tentative and Nationality Act (INA) (8 U.S.C. Project Description (UPD) which expires indirect cost rate proposal based on its most 1522), as amended. Applications will be 12/31/2003. An agency may not conduct recently completed fiscal year in accordance screened and evaluated as indicated in or sponsor, and a person is not required with the principles set forth in the cognizant this program announcement. Awards to respond to, a collection of agency’s guidelines for establishing indirect will be contingent on the outcome of the information unless it displays a cost rates, and submit it to the cognizant competition and the availability of currently valid OMB control number. agency. Applicants awaiting approval of their funds. indirect cost proposals may also request DATES: The closing date for submission Part I: Background indirect costs. It should be noted that when of applications is July 8, 2002. See Part The Office of Refugee Resettlement an indirect cost rate is requested, those costs IV of this announcement for more (ORR) has supported the field of included in the indirect cost pool should not information on submitting applications. microenterprise development since also be charged as direct costs to the grant. Announcement Availability: The 1991 with discretionary grants to Also, if the applicant is requesting a rate program announcement and the various State governments, community which is less than what is allowed under the application materials are available on economic development agencies, program, the authorized representative of the the ORR website at www.acf.dhhs.gov/ community action and other human applicant organization must submit a signed service agencies, local mutual assistance acknowledgment that the applicant is programs/orr. accepting a lower rate than allowed. FOR FURTHER INFORMATION CONTACT: associations, and voluntary agencies. Henley Portner, Division of Community Organizations with successful programs Program Income Resettlement, Office of Refugee have typically been those with a long- Description: The estimated amount of Resettlement, Administration for term commitment to microenterprise income, if any, expected to be generated from Children and Families, at (202) 401– and to its adaptation to the refugee this project. 5363 or [email protected]. experience. They have committed Justification: Describe the nature, source SUPPLEMENTARY INFORMATION: This agency resources to support refugee and anticipated use of program income in the program announcement consists of four programs; and their work in refugee budget or refer to the pages in the application parts: microenterprise has been consistent that contain this information. Part I: Background, legislative with the overall agency mission. A Nonfederal Resources authority, funding availability, CFDA public or private non-profit agency Description: Amounts of non-Federal Number, applicant eligibility, project interested in receiving funding under resources that will be used to support the and budget periods, program purpose this announcement must analyze its project as identified in Block 15 of the SF– organizational capacity to work with 424. 1 In addition to persons who meet all refugees who are economically poor, Justification: The firm commitment of requirements of 45 CFR 400.43, eligibility for who have limited English language these resources must be documented and refugee social services also includes: (1) Cuban and proficiency, and who have neither Haitian entrants under section 501 of the Refugee assets nor American business submitted with the application in order to be Education Assistance Act of 1980 (Pub. L. 96–422); given credit in the review process. A detailed (2) certain Amerasians from Vietnam who are experience. Many newly arrived budget must be prepared for each funding admitted to the U.S. as immigrants under section refugees do not qualify for commercial source. 584 of the Foreign Operations, Export Financing, loans or for admission into mainstream and Related Programs Appropriations Act, as microenterprise development programs Total Direct Charges, Total Indirect Charges, included in FY 1988 Continuing Resolution (Pub. for these reasons. Total Project Costs L. 100–202); and (3) certain Amerasians from Vietnam, including U.S. citizens, under Title II of Refugees bring positive attributes to [Self-explanatory] the Foreign Operations, Export Financing, and microenterprise development projects, Related Programs Appropriations Act of 1989 (Pub. [FR Doc. 02–13089 Filed 5–23–02; 8:45 am] including a diverse and rich array of L. 10–461), 1990 (Pub. L. 101–167), and 1991 (Pub. business ideas, skills, experiences, and BILLING CODE 4184–01–P L. 101–513). For convenience, the term ‘‘refugee’’ is used in this notice to encompass all such eligible ambitions. These characteristics have persons. been largely responsible for the success

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of the ORR initiative. During the last ten Applicants may be required to reduce microenterprise organizations (where years, refugees have started or expanded the scope of projects based on the they are present), and with financial over 800 micro-businesses; and over 89 amount of the approved grant award. institutions. percent of these businesses have CFDA Number: The Catalog of Federal ORR will not fund applicants who survived. ORR grantees have provided Domestic Assistance number for this propose to subgrant or contract all or over $3 million in financing to these program is 93.576. The title of the most of the proposed activities under entrepreneurs; and the loan repayment program is the Refugee Microenterprise this initiative to an unrelated entity. rate is close to 100 percent. By Development Program. This does not bar subgranting or commonly accepted measures of Applicant Eligibility: Eligible contracting for specific services or performance (business survival rates, applicants are public and private non- activities. loan default rates, etc.), the ORR-funded profit organizations and agencies of Client Eligibility: Eligible clients are programs have excelled and frequently State governments that are responsible refugees who aspire to establish, led the field in achievement. More for the refugee program under 45 CFR expand, or stabilize a microenterprise important, over 4,000 refugees have 400.5. Faith-based organizations are but who lack the financial resources, gained new entrepreneurial skills and eligible to apply for these grants. credit history, or personal assets to knowledge; and the additional business Project and Budget Periods: This qualify for business loans or assistance income is helping refugee families to announcement invites applications for through commercial institutions. achieve economic self-sufficiency. project periods up to three years. Refugees may participate regardless of Building on the experience of the last Awards, on a competitive basis, will be their date of arrival in the U.S. Grantees ten years, ORR seeks in this for a one-year budget period, although will be responsible for documenting announcement to continue support to project periods may be for three years. refugee client eligibility. this field, particularly on behalf of those Applications for continuation grants Allowable Activities: Project refugees who, because of language and funded under these awards beyond the components may include one-on-one cultural barriers, are unlikely to gain one-year budget period but within the business consultation and training, access to commercial loans or business three-year project period will be training in classroom settings, access to training through other programs. To be entertained in subsequent years on a business credit, individual or peer successful in this competition, refugee- noncompetitive basis, subject to group lending, and follow-up technical serving organizations must demonstrate availability of funds, satisfactory assistance to refugee businesses. ORR their agency’s capacity to provide the progress of the grantee, and a funds may also be used for the technical expertise to help refugees start determination that continued funding administrative costs associated with a or expand businesses. Economic would be in the best interest of the loan loss reserve fund or with managing development agencies must show how Government. a revolving loan fund. they will modify their existing programs Refugee Microenterprise Development Microloans consist of small amounts to serve refugees effectively. Program Purpose and Scope: The of credit that are less than $15,000 and Legislative Authority: Section purpose of microenterprise are extended to low-income 412(c)(1)(A) of the Immigration and development is to assist refugees in entrepreneurs for start-ups of Nationality Act (INA)(8 U.S.C. becoming economically self-sufficient microenterprises or for expansion or 1522(c)(1)(A)) authorizes the Director and to help refugee communities in stabilization of existing ‘‘to make grants to, and enter into developing employment and capital microenterprises. Applicants may elect contracts with, public or private resources. to establish cooperative relationships nonprofit agencies for projects Applicants may request funds for with one or more of the community’s specifically designed—(i) to assist microenterprise development projects to financial institutions to obtain access to refugees in obtaining the skills which include business technical assistance or commercial loan funds. Alternatively, are necessary for economic self- short-term training, credit in the form of ORR funds may be used for microloans sufficiency, including projects for job microloans, the administrative costs of to individual refugee entrepreneurs in training, employment services, day care, managing the project, and, if applicable, sums not to exceed $15,000 (of ORR professional refresher training, and a revolving microloan fund. Projects monies). These funds may be disbursed other recertification services; (ii) to should be designed in a manner that is through individual loans or through provide training in English where culturally and linguistically appropriate peer lending mechanisms, through a necessary (regardless of whether the for the refugee population. revolving loan fund. Requests for ORR refugees are employed or receiving cash Projects should be designed to be grant funds for a revolving loan fund or other assistance); and (iii) to provide appropriate for the characteristics of the may not exceed $50,000 in the first where specific needs have been shown local refugee populations, including budget period. Grantees will be and recognized by the Director, health characteristics such as employment responsible for establishing written (including mental health) services, rates, welfare status, length of time in lending policies and procedures and for social services, educational and other the U.S., interest in micro-businesses, collecting and servicing loan services.’’ and English language proficiency. repayments. Funding Availability: ORR expects to Applicants should also be familiar with ORR supports the use of commercial make available approximately $2.5 the capital needs and capital market lending institutions for refugee million for Microenterprise gaps for refugee entrepreneurs and borrowers to leverage the limited Development projects for about 12 to 20 should demonstrate how refugees will amount of ORR funds available for this awards in amounts ranging from gain access to business credit. purpose and to provide borrowers with $100,000–$200,000. Successful applicants will the opportunity to establish credit- The Director reserves the right to demonstrate an understanding of the worthy histories with traditional award less, or more, than the funds economic opportunities in the lenders. To that end, ORR does not described, in the absence of worthy community for refugees and will have encourage the use of below-market rates applications, or under such other established working partnerships with of interest for the loan funds. circumstances as may be deemed to be the communities’ refugee resettlement Conversely, grantees may not charge in the best interest of the government. services network, with existing refugees interest rates that exceed four

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percentage points above the New York evaluated and ranked to compete with endnotes/footnotes. Incorporate prime lending rate at the time of loan other applications for available demographic data and participant/ approval. assistance. The project description beneficiary information, as needed. In Microloans will have a maximum should be concise and complete and developing the project description, the maturity of three years. They may be should address the activity for which applicant may volunteer or be requested used for working capital, inventory, Federal funds are being requested. to provide information on the total supplies, furniture, fixtures, machinery, Supporting documents should be range of projects currently being tools, equipment, building renovation, included where they can present conducted and supported (or to be and/or leasehold improvements. information clearly and succinctly. In initiated), some of which may be Microloan funds may not be used for preparing your project description, all outside the scope of the program the following types of businesses: information requested through each announcement. • As venture capital for established specific evaluation criteria should be Results or Benefits Expected businesses that are attempting major provided. Awarding offices use this and expansion; other information in making their Identify the results and benefits to be • For enterprises engaged in gambling funding recommendations. It is derived. For example, ORR is or speculation; particularly interested in the number of • important, therefore, that this For any illegal activity or information be included in the businesses established, expanded, or production or for the service or application. stabilized; the employment generated by distribution of illegal products; the businesses; the number and size of • For purposes not related to General Instructions loans provided to refugees; the amount microenterprise development; e.g., for ACF is particularly interested in of additional funds leveraged by the the purchase of a personal-use specific factual information and ORR funds for microenterprise loans, automobile. statements of measurable goals in and the impact of the businesses Treatment of Program Income: quantitative terms. Project descriptions assisted on the refugees’ movement Projects with revolving loan funds may are evaluated on the basis of substance, toward self-sufficiency. earn and retain program income in the not length. Extensive exhibits are not Approach form of interest (on individual loans or required. Cross-referencing should be from loan loss reserves). Specifically, used rather than repetition. Supporting Outline a plan of action that describes program income funds may be retained information concerning activities that the scope and detail of how the by the project to expand the pool of will not be directly funded by the grant proposed work will be accomplished. credit in accordance with 45 CFR 74.24 or information that does not directly Account for all functions or activities (b)(1), (b)(2) and (e) for non-profit pertain to an integral part of the grant- identified in the application. Cite factors organizations and 45 CFR 92.25 (g)(2) funded activity should be placed in an that might accelerate or decelerate the for governmental entities. Similarly, appendix. Pages should be numbered work and state your reason for taking repaid loan principal is to be treated as and a table of contents should be the proposed approach rather than program income and placed in the included for easy reference. others. Describe any unusual features of revolving loan fund for re-lending. the project such as design or Program income may be retained by the Introduction technological innovations, reductions in grantee so long as the use of these funds Applicants required to submit a full cost or time, or extraordinary social and furthers the objectives of the grant and project description shall prepare the community involvement. is consistent with the Federal statute project description statement in Provide quantitative monthly or under which the grant was made. accordance with the following quarterly projections of the Any fees or charges imposed on instructions and the specified accomplishments to be achieved for refugee clients by the grantee or its evaluation criteria. The instructions give each function or activity in such terms subcontractors or affiliates (e.g., loan a broad overview of what your project as the number of people to be served processing or training fees) must be description should include while the and the number of activities disclosed in the application and pre- evaluation criteria expands and clarifies accomplished. When accomplishments approved by ORR. more program-specific information that cannot be quantified by activity or Successful grantees will be expected is needed. function, list them in chronological to coordinate their policies and order to show the schedule of Project Summary/Abstract procedures for developing and accomplishments and their target dates. administering refugee microenterprise Provide a summary of the project If any data is to be collected, projects with the existing refugee description (a page or less) with maintained, and/or disseminated, microenterprise services network. To reference to the funding request. clearance may be required from the U.S. ensure an exchange of technical and Objectives and Need for Assistance Office of Management and Budget training information among programs, (OMB). This clearance pertains to any all grantees are encouraged to attend Clearly identify the physical, ‘‘collection of information that is two ORR training meetings during each economic, social, financial, conducted or sponsored by ACF.’’ year of their participation in this institutional, and/or other problem(s) List organizations, cooperating program area. Grant funds may be used requiring a solution. The need for entities, consultants, or other key to offset the cost of attendance. assistance must be demonstrated and individuals who will work on the the principal and subordinate objectives project along with a short description of Part II: General Instructions for of the project must be clearly stated; the nature of their effort or contribution. Preparing a Full Project Description supporting documentation, such as Geographic Location The Project Description Overview letters of support and testimonials from concerned interests other than the Describe the precise location of the Purpose applicant, may be included. Any project and boundaries of the area to be The project description provides a relevant data based on planning studies served by the proposed project. Maps or major means by which an application is should be included or referred to in the other graphic aids may be attached.

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Additional Information unit costs, and other similar quantitative transportation costs and subsistence Following are requests for additional detail sufficient for the calculation to be allowances. Travel costs for key staff to information that need to be included in duplicated. The detailed budget must attend ACF-sponsored workshops the application: also include a breakout by the funding should be detailed in the budget. sources identified in Block 15 of the SF– Equipment Staff and Position Data 424. Provide a biographical sketch for each Provide a narrative budget Description: ‘‘Equipment’’ means an key person appointed and a job justification that describes how the article of nonexpendable, tangible description for each vacant key position. categorical costs are derived. Discuss personal property having a useful life of A biographical sketch will also be the necessity, reasonableness, and more than one year and an acquisition required for new key staff as appointed. allocability of the proposed costs. cost which equals or exceeds the lesser of (a) the capitalization level established Organizational Profiles General by the organization for the financial Provide information on the applicant The following guidelines are for statement purposes, or (b) $5,000. (Note: organization(s) and cooperating partners preparing the budget and budget Acquisition cost means the net invoice such as organizational charts, financial justification. Both Federal and non- unit price of an item of equipment, statements, audit reports, or statements Federal resources shall be detailed and including the cost of any modifications, from CPAs/Licensed Public justified in the budget and narrative attachments, accessories, or auxiliary Accountants, Employer Identification justification. For purposes of preparing apparatus necessary to make it usable Numbers, names of bond carriers, the budget and budget justification, for the purpose for which it is acquired. contact persons and telephone numbers, ‘‘Federal resources’’ refers only to the Ancillary charges, such as taxes, duty, child care licenses, and other ACF grant for which you are applying. protective in-transit insurance, freight, documentation of professional Non-Federal resources are all other and installation shall be included in or accreditation, information on Federal and non-Federal resources. It is excluded from acquisition cost in compliance with Federal/State/local suggested that budget amounts and accordance with the organization’s government standards, documentation computations be presented in a regular written accounting practices.) of experience in the program area, and columnar format: first column, object Justification: For each type of other pertinent information. Any non- class categories; second column, Federal equipment requested, provide a profit organization submitting an budget; next column(s), non-Federal description of the equipment, the cost application must submit proof of its budget(s), and last column, total budget. per unit, the number of units, the total non-profit status in its application at the The budget justification should be a cost, and a plan for use on the project, time of submission. narrative. as well as use or disposal of the The non-profit agency can accomplish equipment after the project ends. An Personnel this by providing a copy of the applicant organization that uses its own applicant’s listing in the Internal Description: Costs of employee definition for equipment should provide Revenue Service’s (IRS) most recent list salaries and wages. a copy of its policy or section of its of tax-exempt organizations described in Justification: Identify the project policy which includes the equipment Section 501(c)(3) of the IRS code or by director or principal investigator, if definition. known. For each staff person, provide providing a copy of the currently valid Supplies IRS tax exemption certificate or by the title, time commitment to the project providing a copy of the articles of (in months), time commitment to the Description: Costs of all tangible incorporation bearing the seal of the project (as a percentage or full-time personal property other than that State in which the corporation or equivalent), annual salary, grant salary, included under the Equipment category. association is domiciled. wage rates, etc. Do not include the costs Justification: Specify general of consultants or personnel costs of categories of supplies and their costs. Third-Party Agreements delegate agencies or of specific Show computations and provide other Include written agreements between project(s) or businesses to be financed information that supports the amount grantees and subgrantees or by the applicant. requested. subcontractors or other cooperating Fringe Benefits Contractual entities. These agreements must detail scope of work to be performed, work Description: Costs of employee fringe Description: Costs of all contracts for schedules, remuneration, and other benefits unless treated as part of an services and goods except for those that terms and conditions that structure or approved indirect cost rate. belong under other categories such as define the relationship. Justification: Provide a breakdown of equipment, supplies, construction, etc. the amounts and percentages that Third-party evaluation contracts (if Letters of Support comprise fringe benefit costs such as applicable) and contracts with Provide statements from community, health insurance, FICA, retirement secondary recipient organizations, public and commercial leaders that insurance, taxes, etc. including delegate agencies and specific support the project proposed for project(s) or businesses to be financed Travel funding. All submissions should be by the applicant, should be included included in the application OR by Description: Costs of project-related under this category. application deadline. travel by employees of the applicant Justification: All procurement organization (does not include costs of transactions shall be conducted in a Budget and Budget Justification consultant travel). manner to provide, to the maximum Provide line item detail and detailed Justification: For each trip, show the extent practical, open, and free calculations for each budget object class total number of traveler(s), travel competition. Recipients and identified on the Budget Information destination, duration of trip, per diem, subrecipients, other than States that are form. Detailed calculations must mileage allowances, if privately owned required to use part 92 procedures, must include estimation methods, quantities, vehicles will be used, and other justify any anticipated procurement

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action that is expected to be awarded Program Income part of the award process. The applicant without competition and exceed the Description: The estimated amount of must submit all required materials, if simplified acquisition threshold fixed at income, if any, expected to be generated any, to the SPOC and indicate the date 41 U.S.C. 403(11) (currently set at from this project. of this submittal (or the date of contact $100,000). Recipients might be required Justification: Describe the nature, if no submittal is required) on the to make available to ACF pre-award source, and anticipated use of program Standard Form 424, item 16a. Under 45 review and procurement documents, income in the budget or refer to the CFR 100.8(a)(2), a SPOC has 60 days such as request for proposals or pages in the application that contain from the application deadline to invitations for bids, independent cost this information. comment on proposed new or estimates, etc. competing continuation awards. Note: Whenever the applicant intends to Nonfederal Resources SPOCs are encouraged to eliminate delegate part of the project to another agency, Description: Amounts of non-Federal the submission of routine endorsements the applicant must provide a detailed budget resources that will be used to support as official recommendations. and budget narrative for each delegate Additionally, SPOCs are requested to agency, by agency title, along with the the project as identified in Block 15 of the SF–424. differentiate clearly between mere required supporting information referred to advisory comments and those official in these instructions. Justification: The firm commitment of these resources must be documented State process recommendations, which Other and submitted with the application in may trigger the ‘‘accommodate or order to be given credit in the review explain’’ rule. Enter the total of all other costs. Such When comments are submitted process. A detailed budget must be costs, where applicable and appropriate, directly to ACF, they should be prepared for each funding source. may include but are not limited to addressed to: Department of Health and insurance, food, medical and dental Total Direct Charges, Total Indirect Human Services, Administration for costs (noncontractual), professional Charges, Total Project Costs Children and Families, Office of Grants services costs, space and equipment Management, Attention: Daphne Part III: The Review Process rentals, printing and publication, Weeden, Grants Officer, 370 L’Enfant computer use, training costs, such as Intergovernmental Review Promenade, SW., Fourth Floor West, tuition and stipends, staff development This program is covered under Washington, DC 20447. costs, and administrative costs. A list of the Single Points of Contact Justification: Provide computations, a Executive Order 12372, ‘‘Intergovernmental Review of Federal for each State and Territory is included narrative description, and a justification with the application materials for this for each cost under this category. Programs,’’ and 45 CFR part 100, ‘‘Intergovernmental Review of program announcement. Indirect Charges Department of Health and Human Initial ACF Screening Description: Total amount of indirect Services Programs and Activities.’’ Each application submitted under this costs. This category should be used only Under the Order, States may design program announcement will undergo a when the applicant currently has an their own processes for reviewing and pre-review to determine that (1) the indirect cost rate approved by the commenting on proposed Federal application was mailed by the closing Department of Health and Human assistance under covered programs. date and submitted in accordance with Services (HHS) or another cognizant The following jurisdictions have the instructions in this announcement Federal agency. elected not to participate in the and (2) the applicant is eligible for Justification: An applicant that will Executive Order process. Applicants funding. charge indirect costs to the grant must from these jurisdictions need take no enclose a copy of the current rate action in regard to E.O. 12372: Alabama, Competitive Review agreement. If the applicant organization Alaska, American Samoa, Colorado, Applications, which pass the initial is in the process of initially developing Connecticut, Kansas, Hawaii, Idaho, ACF screening, will be evaluated and or renegotiating a rate, it should Louisiana, Massachusetts, Minnesota, rated by an independent review panel immediately upon notification that an Montana, Nebraska, New Jersey, Ohio, on the basis of specific evaluation award will be made, develop a tentative Oklahoma, Oregon, Palau, criteria. The evaluation criteria were indirect cost rate proposal based on its Pennsylvania, South Dakota, Tennessee, designed to assess the quality of a most recently completed fiscal year in Vermont, Virginia, and Washington. proposed project and to determine the accordance with the principles set forth Although the jurisdictions listed likelihood of its success. The evaluation in the cognizant agency’s guidelines for above no longer participate in the criteria are closely related and are establishing indirect cost rates and process, entities which have met the considered as a whole in judging the submit it to the cognizant agency. eligibility criteria of the program may overall quality of an application. Points Applicants awaiting approval of their still apply for a grant even if a State, are awarded only to applications that indirect cost proposals may also request Territory, Commonwealth, etc., does not are responsive to the evaluation criteria indirect costs. It should be noted that have a SPOC. All remaining within the context of this program when an indirect cost rate is requested, jurisdictions participate in the announcement. those costs included in the indirect cost Executive Order process and have pool should not also be charged as established SPOCs. Applicants from Review Criteria direct costs to the grant. Also, if the participating jurisdictions should Applications will be reviewed using applicant is requesting a rate which is contact their SPOCs as soon as possible the following evaluation criteria: less than what is allowed under the to alert them of the prospective 1. Objectives and Need for program, the authorized representative applications and receive instructions. Assistance. Quality of the description of of the applicant organization must Applicants must submit any required the prospective refugee communities’ submit a signed acknowledgement that material to the SPOCs as soon as profile with respect to welfare the applicant is accepting a lower rate possible so that the program office can utilization, English language than allowed. obtain and review SPOC comments as proficiency, length of time in the U.S.,

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interest in microbusiness, and the available from the ORR website at 3. Late applications. Applications description of local capital needs and www.acf.dhhs.gov/programs/orr/ that do not meet the criteria above are capital market gaps for refugee funding. Application materials considered late applications. ACF shall microentrepreneurs. (15 points). including forms and instructions are notify each late applicant that its 2. Approach. Adequacy and available from the contact named under application will not be considered in appropriateness of the program the FOR FURTHER INFORMATION CONTACT the current competition. approach or design, including project section in the preamble of this 4. Extension of deadlines. ACF may goals and structure (policies, announcement. extend an application deadline when procedures, activities); training and circumstances such as acts of God technical assistance; loan funds, lending Application Submission Information (floods, hurricanes, etc.) occur, or when criteria, and fees, if included in the 1. Mailed applications postmarked there is widespread disruption of the design; whether the business targets are after the closing date will be classified mail service, or in other rare cases. start-ups, expansions, or both; partner as late. Determinations to extend or waive agencies; and credit enhancements, 2. Deadline. Mailed applications deadline requirements rest with ACF’s such as loan loss reserves. (30 points). shall be considered as meeting an Chief Grants Management Officer. 3. Organization Profiles. announced deadline if they are either Regulations: Applicable U.S. Demonstrated organizational and received on or before the deadline date Department of Health and Human management capacity including or sent on or before the deadline date Services regulations can be found at 45 bilingual/bicultural competent services and received by ACF in time for the CFR part 74 or part 92. and experience serving refugees and independent review to: U.S. Department Reporting: Grantees are required to other economically disadvantaged of Health and Human Services, file the Financial Status Report (SF–269) populations; description of experience Administration for Children and and Program Performance Reports on a in organizational management, Families, Office of Grants Management, semi-annual basis. Funds issued under including copies of the last two fiscal Attention: Daphne Weeden, Grants these awards must be accounted for, and year financial statements, with balance Officer, 370 L’Enfant Promenade, SW., reported upon, separately from all other sheets and income statements; Washington, DC 20447. Applicants must grant activities. Although ORR does not description of experience in ensure that a legibly dated U.S. Postal expect the proposed projects to include management of loan funds, including a Service postmark or a legibly dated, evaluation activities, it does expect projected monthly cash flow chart for machine-produced postmark of a grantees to maintain adequate records to the loan fund for the three-year period commercial mail service is affixed to the track and report on project outcomes. beginning October 1, 2002; and envelope/package containing the The official receipt point for all reports experience in collaboration with the application(s). To be acceptable as proof and correspondence is Ms. Daphne specific refugee community(ies) and of timely mailing, a postmark from a Weeden, Grants Officer, Office of Grants coalition building among refugee and commercial mail service must include Management, Administration for non-refugee service providers. (20 the logo/emblem of the commercial mail Children and Families, 370 L’Enfant points). service company and must reflect the Promenade, SW., 4th Floor West, 4. Results and Expected Benefits. date the package was received by the Washington, DC 20447, Telephone: Extent to which the expected outcomes commercial mail service company from (202) 401–4577. An original and one and unit costs of the project are the applicant. Private metered copy of each report shall be submitted appropriate, consistent with reported postmarks shall not be acceptable as within 30 days of the end of each nationwide performance in proof of timely mailing. (Applicants are reporting period directly to the Grants microenterprise projects, and reasonable cautioned that express/overnight mail Officer. The mailing address is: Ms. in relation to the proposed activities. services do not always deliver as Daphne Weeden, Grants Officer, Office Results may include the impact of loan agreed.) Applications handcarried by of Grants Management, Administration funds, business income, and business applicants, by applicant couriers, or by for Children and Families, 370 L’Enfant assets on clients’ welfare status, if other representatives of the applicant Promenade SW., 4th Floor West, applicable, as well as projected shall be considered as meeting an Washington, DC 20447. A final outcomes for business income, announced deadline if they are received Financial Status Report and Program employment, and survivability. (20 on or before the deadline date, between Performance Report shall be due 90 points). the hours of 8:00 a.m. and 4:30 p.m., days after the budget expiration date or 5. Budget and Budget Justification. EST, at the U.S. Department of Health termination of grant support. Appropriateness and reasonableness of and Human Services, Administration for the proposed budget, including the Children and Families, Office of Grants Dated: May 9, 2002. relative distribution of funds for Management, ACF Mailroom, Second Nguyen Van Hanh, administrative costs, training or Floor (near loading dock), Aerospace Director, Office of Refugee Resettlement. technical assistance, and loan capital. Center, 901 D Street, SW., Washington, [FR Doc. 02–13035 Filed 5–23–02; 8:45 am] The application should include project DC 20024, between Monday and Friday BILLING CODE 4184–01–P timelines and a narrative justification (excluding Federal holidays). The supporting each budget line item. (15 address must appear on the envelope/ points). package containing the application with DEPARTMENT OF HEALTH AND the note ‘‘Attention: Daphne Weeden, HUMAN SERVICES Part IV: The Application Grants Officer.’’ ACF cannot Application Materials: In order to be accommodate transmission of Substance Abuse and Mental Health considered for a grant under this applications by fax or through other Services Administration program announcement, an application electronic media. Therefore, Fiscal Year (FY) 2002 Funding must be submitted on the Standard applications transmitted to ACF Opportunities Form 424 and in the manner prescribed electronically will not be accepted by ACF. Application materials regardless of date or time of submission AGENCY: Substance Abuse and Mental including forms and instructions are and time of receipt. Health Services Administration, HHS.

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ACTION: Notice of funding availability. not a complete description of the Communities: Planning Grants (SP 02– activity; potential applicants must 004), and Part II, General Policies and SUMMARY: The Substance Abuse and obtain a copy of the Guidance for Procedures Applicable to all SAMHSA Mental Health Services Administration Applicants (GFA), including Part I, Applications for Discretionary Grants (SAMHSA) Center for Substance Abuse Targeted Capacity Expansion Initiatives and Cooperative Agreements, before Prevention (CSAP) announces the availability of FY 2002 funds for grants for Substance Abuse Prevention (SAP) preparing and submitting an for the following activity. This notice is and HIV Prevention (HIVP) in Minority application.

Est. funds Est. number Project Activity Application deadline FY 2002 of awards period

Targeted Capacity Expansion Initiatives for Substance Abuse Prevention July 24, 2002 ...... $7,500,000 70–75 1 year. (SAP)and HIV Prevention (HIVP) in Minority Communities: Planning Grants.

The actual amount available for the This program responds to the health funding levels will depend on the award may vary, depending on emergency in African-American, availability of funds. unanticipated program requirements Hispanic/Latino, American Indian/ CSAP’s Minority SAP and HIVP and the number and quality of Alaska Native, and Asian-American/ programs include two separate funding applications received. FY 2002 funds for Pacific Islander communities described opportunities in FY 2002: the activity discussed in this by the Congressional Black and • This GFA provides instructions on announcement were appropriated by the Hispanic Caucuses. It includes two applying for Planning Grants • Congress under Public Law No. 106– initiatives: A separate GFA is available to 310. SAMHSA’s policies and • Planning Grants provide instructions on applying for procedures for peer review and • Services Grants Services Grants. Period of Support: Awards may be Advisory Council review of grant and Funds under this Planning Grant cooperative agreement applications requested for up to 1 year. initiative are available to establish the Criteria for Review and Funding: were published in the Federal Register infrastructure and leadership necessary General Review Criteria: Competing (Vol. 58, No. 126) on July 2, 1993. to be able to provide effective Substance applications requesting funding under General Instructions: Applicants must Abuse Prevention (SAP) and HIV this activity will be reviewed for use application form PHS 5161–1 (Rev. Prevention (HIVP) and other related technical merit in accordance with 7/00). The application kit contains the services to the minority communities established PHS/SAMHSA peer review two-part application materials they serve. Funds will also support procedures. Review criteria that will be (complete programmatic guidance and efforts and activities that will build used by the peer review groups are instructions for preparing and awareness and consensus, and develop specified in the application guidance submitting applications), the PHS 5161– action plans for services to help ensure material. 1 which includes Standard Form 424 access to effective SAP and HIVP Award Criteria for Scored (Face Page), and other documentation interventions in their communities. Applications: Applications will be and forms. Application kits may be Eligibility: Funding will be directed to considered for funding on the basis of obtained from: National Clearinghouse activities designed to deliver services their overall technical merit as for Alcohol and Drug Information specifically targeting racial and ethnic determined through the peer review (NCADI), P.O. Box 2345, Rockville, MD minority populations impacted by HIV/ group and the appropriate National 20847–2345, Telephone: 1–800–729– AIDS. Eligible entities may include: not Advisory Council review process. 6686. for profit community-based Availability of funds will also be an The PHS 5161–1 application form and organizations, national organizations, award criteria. Additional award criteria the full text of the activity are also colleges and universities, clinics and specific to the programmatic activity available electronically via SAMHSA’s hospitals, research institutions, and may be included in the application World Wide Web Home Page: http:// tribal government and tribal/urban guidance materials. www.samhsa.gov. Indian entities and organizations. Faith- Catalog of Federal Domestic based and community-based Assistance Number: 93.243. When requesting an application kit, organizations are eligible to apply. In Program Contact: For questions the applicant must specify the particular addition, health care delivery concerning program issues, contact: activity for which detailed information organizations, Historically-Black Francis C. Johnson, M.S.W., Rockwall II, is desired. All information necessary to Colleges (HBCUs), Tribal Colleges and Suite 1075, 5600 Fishers Lane, apply, including where to submit Universities (TCUs), Hispanic Serving Rockville, MD 20857, (301) 443–6612, applications and application deadline Institutions (HSIs), Hispanic E-Mail: [email protected]. instructions, are included in the Association of Colleges and Universities For questions regarding grants application kit. members (HACUs), are also eligible to management issues, contact: Steve Purpose: SAMHSA’s Center for apply. Note: State and local government Hudak, Division of Grants Management, Substance Abuse Prevention (CSAP) agencies are not eligible under this GFA. OPS/SAMHSA, Rockwall II, 6th floor, announces that funding is available for Availability of Funds: Approximately 5600 Fishers Lane, Rockville, MD Fiscal Year 2002 for Planning Grants $7.5 million is available to fund 20857, (301) 443–9666, E-Mail: through the Targeted Capacity planning grants. CSAP expects to award [email protected]. Expansion Initiatives for Substance funding to 70–75 applicants, in the Public Health System Reporting Abuse Prevention (SAP) and HIV amount of $90,000 to $125,000. Your Requirements: The Public Health Prevention (HIVP) in Minority budget should not exceed $125,000 in System Impact Statement (PHSIS) is Communities Program. total costs (direct and indirect). Actual intended to keep State and local health

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officials apprised of proposed health facility) in which regular or routine explain SPOC comments that are services grant and cooperative education, library, day care, health care, received after the 60-day cut-off. agreement applications submitted by or early childhood development Dated: May 22, 2002. community-based nongovernmental services are provided to children. This Richard Kopanda, organizations within their jurisdictions. is consistent with the PHS mission to Executive Officer, SAMHSA. Community-based nongovernmental protect and advance the physical and service providers who are not mental health of the American people. [FR Doc. 02–13209 Filed 5–22–02; 12:03 pm] transmitting their applications through Executive Order 12372: Applications BILLING CODE 4162–20–P the State must submit a PHSIS to the submitted in response to the FY 2002 head(s) of the appropriate State and activity listed above are subject to the local health agencies in the area(s) to be DEPARTMENT OF HEALTH AND intergovernmental review requirements HUMAN SERVICES affected not later than the pertinent of Executive Order 12372, as receipt date for applications. This implemented through DHHS regulations Substance Abuse and Mental Health PHSIS consists of the following at 45 CFR Part 100. E.O. 12372 sets up Services Administration information: a system for State and local government (a) A copy of the face page of the review of applications for Federal Fiscal Year (FY) 2002 Funding application (Standard form 424). financial assistance. Applicants (other Opportunities (b) A summary of the project (PHSIS), than Federally recognized Indian tribal not to exceed one page, which provides: governments) should contact the State’s AGENCY: Substance Abuse and Mental (1) A description of the population to Health Services Administration, HHS. be served. Single Point of Contact (SPOC) as early (2) A summary of the services to be as possible to alert them to the ACTION: Notice of funding availability. provided. prospective application(s) and to receive (3) A description of the coordination any necessary instructions on the State’s SUMMARY: The Substance Abuse and planned with the appropriate State or review process. For proposed projects Mental Health Services Administration local health agencies. serving more than one State, the (SAMHSA) Center for Substance Abuse State and local governments and applicant is advised to contact the SPOC Prevention (CSAP) announces the Indian Tribal Authority applicants are of each affected State. A current listing availability of FY 2002 funds for grants not subject to the Public Health System of SPOCs is included in the application for the following activity. This notice is Reporting Requirements. Application guidance materials. The SPOC should not a complete description of the guidance materials will specify if a send any State review process activity; potential applicants must particular FY 2002 activity is subject to recommendations directly to: Division obtain a copy of the Guidance for the Public Health System Reporting of Extramural Activities, Policy, and Applicants (GFA), including Part I, Requirements. Review, Substance Abuse and Mental Targeted Capacity Expansion Initiatives PHS Non-use of Tobacco Policy Health Services Administration, for Substance Abuse Prevention (SAP) Statement: The PHS strongly encourages Parklawn Building, Room 17–89, 5600 and HIV Prevention (HIVP) in Minority all grant and contract recipients to Fishers Lane, Rockville, Maryland Communities: Services Grants (SP 02– provide a smoke-free workplace and 20857. 005), and Part II, General Policies and promote the non-use of all tobacco The due date for State review process Procedures Applicable to all SAMHSA products. In addition, Public Law 103– recommendations is no later than 60 Applications for Discretionary Grants 227, the Pro-Children Act of 1994, days after the specified deadline date for and Cooperative Agreements, before prohibits smoking in certain facilities the receipt of applications. SAMHSA preparing and submitting an (or in some cases, any portion of a does not guarantee to accommodate or application.

Est. funds Est. number Project Activity Application deadliine FY 2002 of awards period

Targeted Capacity Expansion Initiatives for Substance Abuse Prevention July 24, 2002 ...... $15,100,000 40–45 3 year. (SAP) and HIV Prevention (HIVP) in Minority Communities; Services Grants.

The actual amount available for the two-part application materials When requesting an application kit, award may vary, depending on (complete programmatic guidance and the applicant must specify the particular unanticipated program requirements instructions for preparing and activity for which detailed information and the number and quality of submitting applications), the PHS 5161– is desired. All information necessary to applications received. FY 2002 funds for 1 which includes Standard Form 424 apply, including where to submit the activity discussed in this (Face Page), and other documentation applications and application deadline announcement were appropriated by the and forms. Application kits may be instructions, are included in the Congress under Public Law No. 106– obtained from: National Clearinghouse application kit. 310. SAMHSA’s policies and for Alcohol and Drug Information Purpose: SAMHSA’s Center for procedures for peer review and (NCADI), P.O. Box 2345, Rockville, MD Substance Abuse Prevention (CSAP) Advisory Council review of grant and 20847–2345, Telephone: 1–800–729– announces that funding is available for cooperative agreement applications 6686. Fiscal Year 2002 for Planning Grants were published in the Federal Register The PHS 5161–1 application form and through the Targeted Capacity (Vol. 58, No. 126) on July 2, 1993. the full text of the activity are also Expansion Initiatives for Substance General Instructions: Applicants must available electronically via SAMHSA’s Abuse Prevention (SAP) and HIV use application form PHS 5161–1 (Rev. World Wide Web Home Page: http:// Prevention (HIVP) in Minority 7/00). The application kit contains the www.samhsa.gov. Communities Program.

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This program responds to the health their overall technical merit as prohibits smoking in certain facilities emergency in African-American, determined through the peer review (or in some cases, any portion of a Hispanic/Latino, American Indian/ group and the appropriate National facility) in which regular or routine Alaska Native, and Asian-American/ Advisory Council review process. education, library, day care, health care, Pacific Islander communities described Availability of funds will also be an or early childhood development by the Congressional Black and award criteria. Additional award criteria services are provided to children. This Hispanic Caucuses. It includes two specific to the programmatic activity is consistent with the PHS mission to initiatives: may be included in the application protect and advance the physical and Funds under this Services Grant guidance materials. mental health of the American people. initiative are available to support Catalog of Federal Domestic Executive Order 12372: Applications effective, integrated Substance Abuse Assistance Number: 93.243. submitted in response to the FY 2002 Prevention (SAP) and HIV Prevention Program Contact: For questions activity listed above are subject to the (HIVP) services for youth and other at- concerning program issues, contact: intergovernmental review requirements risk populations. Francis C. Johnson, M.S.W., Rockwall II, of Executive Order 12372, as Eligibility: Funding will be directed to Suite 1075, 5600 Fishers Lane, implemented through DHHS regulations activities designed to deliver services Rockville, MD 20857, (301) 443–6612, at 45 CFR Part 100. E.O. 12372 sets up specifically targeting racial and ethnic E-Mail: [email protected]. a system for State and local government minority populations impacted by HIV/ For questions regarding grants review of applications for Federal AIDS. Eligible entities may include: not management issues, contact: Steve financial assistance. Applicants (other for profit community-based Hudak, Division of Grants Management, than Federally recognized Indian tribal organizations, national organizations, OPS/SAMHSA, Rockwall II, 6th floor, governments) should contact the State’s colleges and universities, clinics and 5600 Fishers Lane, Rockville, MD Single Point of Contact (SPOC) as early hospitals, research institutions, and 20857, (301) 443–9666, E-Mail: as possible to alert them to the tribal government and tribal/urban [email protected]. prospective application(s) and to receive Public Health System Reporting Indian entities and organizations. Faith- any necessary instructions on the State’s Requirements: The Public Health based and community-based review process. For proposed projects System Impact Statement (PHSIS) is organizations are eligible to apply. In serving more than one State, the intended to keep State and local health addition, health care delivery applicant is advised to contact the SPOC officials apprised of proposed health organizations, Historically-Black of each affected State. A current listing services grant and cooperative Colleges (HBCUs), Tribal Colleges and of SPOCs is included in the application agreement applications submitted by Universities (TCUs), Hispanic Serving guidance materials. The SPOC should community-based nongovernmental Institutions (HSIs), Hispanic send any State review process organizations within their jurisdictions. Association of Colleges and Universities recommendations directly to: Division Community-based nongovernmental of Extramural Activities, Policy, and members (HACUs), are also eligible to service providers who are not apply. Note: State and local government Review, Substance Abuse and Mental transmitting their applications through Health Services Administration, agencies are not eligible under this GFA. the State must submit a PHSIS to the Availability of Funds: Approximately Parklawn Building, Room 17–89, 5600 head(s) of the appropriate State and Fishers Lane, Rockville, Maryland $15.1 million is available to fund local health agencies in the area(s) to be planning grants. CSAP expects to award 20857. affected not later than the pertinent The due date for State review process funding to 40–45 applicants, in the receipt date for applications. This amount of $250,000 to $350,000. Your recommendations is no later than 60 PHSIS consists of the following days after the specified deadline date for budget should not exceed $350,000 in information: total costs (direct and indirect). Actual the receipt of applications. SAMHSA (a) A copy of the face page of the does not guarantee to accommodate or funding levels will depend on the application (Standard form 424). availability of funds. CSAP’s Minority explain SPOC comments that are (b) A summary of the project (PHSIS), received after the 60-day cut-off. SAP and HIVP programs include two not to exceed one page, which provides: separate funding opportunities in FY (1) A description of the population to Dated: May 22, 2002. 2002: be served. Richard Kopanda, • This GFA provides instructions on (2) A summary of the services to be Executive Officer, SAMHSA. applying for Services Grants provided. [FR Doc. 02–13210 Filed 5–22–02; 12:03 pm] • A separate GFA is available to (3) A description of the coordination BILLING CODE 4162–20–P provide instructions on applying for planned with the appropriate State or Planning Grants. local health agencies. Period of Support: Awards may be State and local governments and DEPARTMENT OF HEALTH AND requested for up to 3 years. Indian Tribal Authority applicants are HUMAN SERVICES Criteria for Review and Funding: not subject to the Public Health System General Review Criteria: Competing Reporting Requirements. Application Substance Abuse and Mental Health applications requesting funding under guidance materials will specify if a Services Administration (SAMHSA) this activity will be reviewed for particular FY 2002 activity is subject to Notice of Meetings technical merit in accordance with the Public Health System Reporting established PHS/SAMHSA peer review Requirements. Pursuant to Public Law 92–463, procedures. Review criteria that will be PHS Non-use of Tobacco Policy notice is hereby given of the following used by the peer review groups are Statement: The PHS strongly encourages meetings of SAMHSA Special Emphasis specified in the application guidance all grant and contract recipients to Panels I in June, July, August and material. provide a smoke-free workplace and September 2002. Award Criteria for Scored promote the non-use of all tobacco A summary of the meetings and a Applications: Applications will be products. In addition, Public Law 103– roster of the members may be obtained considered for funding on the basis of 227, the Pro-Children Act of 1994, from: Ms. Coral Sweeney, Review

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Specialist, SAMHSA, Office of Policy Place: Bethesda Marriott, 5151 Pooks Hill Panel: First Responders/Public Safety and Program Coordination, Division of Road, Bethesda, Maryland 20814. Workers. Extramural Activities, Policy, and Closed: July 15, 2002 to Adjournment. Contact: Diane McMenamin, Division of Review, 5600 Fishers Lane, Room 17– Panel: State Incentive Grants. Extramural Activities, Policy and Review, Contact: Diane McMenamin, Division of Parklawn Building, 5600 Fishers Lane, 89, Rockville, Maryland 20857. Rockville, Maryland 20857. Telephone: 301–443–2998. Extramural Activities, Policy and Review, Parklawn Building, 5600 Fishers Lane, Committee Name: SAMSHA Special Substantive program information may Rockville, Maryland 20857. Emphasis Panel 1 (SEP I). be obtained from the individual named Committee Name: SAMSHA Special Meeting Date: August 5–9, 2002. as Contact for the meeting listed below. Emphasis Panel 1 (SEP I). Place: Bethesda Marriott, 5151 Pooks Hill The meetings will include the review, Meeting Date: July 15, 2002. Road, Bethesda, Maryland 20814 discussion and evaluation of individual Place: Bethesda Marriott, 5151 Pooks Hill Closed: August 5, 2002 to Adjournment. Panel: Adult Juvenile Family Drug Courts grant applications. These discussions Road, Bethesda, Maryland 20814. Closed: July 15, 2002. 3 Committees. could reveal personal information Panel: Consumer Support Technical Contact: Diane McMenamin, Division of concerning individuals associated with Assistance Center. Extramural Activities, Policy and Review, the applications. Accordingly, these Contact: Diane McMenamin, Division of Parklawn Building, 5600 Fishers Lane, meetings are concerned with matters Extramural Activities, Policy and Review, Rockville, Maryland 20857. exempt from mandatory disclosure in Parklawn Building, 5600 Fishers Lane, Committee Name: SAMSHA Special Title 5 U.S.C. 552b(6) and 5 U.S.C. Rockville, Maryland 20857. Emphasis Panel 1 (SEP I). App.2, § 10(d). Committee Name: SAMSHA Special Meeting Date: August 5–9, 2002. Emphasis Panel 1 (SEP I). Place: Bethesda Marriott, 5151 Pooks Hill Committee Name: SAMHSA Special Road, Bethesda, Maryland 20814. Emphasis Panel I (SEP I). Meeting Date: July 15–19, 2002. Place: Bethesda Marriott, 5151 Pooks Hill Closed: August 5, 2002. Meeting Date: June 3–7, 2002. Road, Bethesda, Maryland 20814. Panel: Elderly Mental Health Outreach & Place: Bethesda Marriott, 5151 Pooks Hill Treatment 3 Committees. Closed: July 15, 2002 to Adjournment. Road, Bethesda, MD 20814. Contact: Diane McMenamin, Division of Panel: Youth Violence Technical Closed: June 3, 2002 to Adjournment. Extramural Activities, Policy and Review, Assistance Center. Panel: Childrens Mental Health Initiative, Parklawn Building, 5600 Fishers Lane, Contact: Diane McMenamin, Division of SM 02–00272, Committees. Rockville, MD 20857. Extramural Activities, Policy and Review, Contact: Diane McMenamin, Director, Committee Name: SAMSHA Special Division of Extramural Activities, Policy and Parklawn Building, 5600 Fishers Lane, Rockville, Maryland 20857. Emphasis Panel 1 (SEP I). Review, Parklawn Building, 5600 Fishers Meeting Date: August 12–16, 2002. Lane, Room 1789, Rockville, Maryland Committee Name: SAMSHA Special Place: Bethesda Marriott, 5151 Pooks Hill 20857. Emphasis Panel 1 (SEP I). Road, Bethesda, MD 20814. Committee Name: SAMSHA Special Meeting Date: July 22–26, 2002. Closed: August 12, 2002 to Adjournment. Emphasis Panel I (SEP I). Place: Bethesda Marriott, 5151 Pooks Hill Panel: Partnerships for Effective Youth Meeting Date: June 3–7, 2002. Road, Bethesda, Maryland 20814. Transitions, 4 Committees. Place: Bethesda Marriott, 5151 Pooks Hill Closed: July 22, 2002 to Adjournment. Contact: Diane McMenamin, Division of Road, Bethesda, Maryland 20814. Panel: American Indian/American Native Extramural Activities, Policy and Review, Closed: June 3, 2002 to Adjournment. Rural Planning Grants 2 Committees. Parklawn Building, 5600 Fishers Lane, Panel: Partnerships for Effective Youth Contact: Diane McMenamin, Division of Rockville, MD 20857. Transition, SM 02–00372, Committees. Extramural Activities, Policy and Review, Committee Name: SAMSHA Special Contact: Diane McMenamin, Director, Parklawn Building, 5600 Fishers Lane, Emphasis Panel 1 (SEP I). Division of Extramural Activities, Policy and Rockville, Maryland 20857. Meeting Date: August 12–16, 2002. Review, Parklawn Building, 5600 Fishers Committee Name: SAMSHA Special Place: Bethesda Marriott, 5151 Pooks Hill Lane, Room 1789, Rockville, Maryland Emphasis Panel 1 (SEP I). Road, Bethesda, MD 20814. 20857. Meeting Date: July 22–26, 2002. Closed: August 12, 2002. Committee Name: SAMSHA Special Place: Bethesda Marriott, 5151 Pooks Hill Panel: Workforce Training, 3 Committees. Emphasis Panel 1 (SEP I). Road, Bethesda, Maryland 20814. Contact: Diane McMenamin, Division of Meeting Date: June 10—14, 2002. Closed: July 22, 2002 to Adjournment. Extramural Activities, Policy and Review, Place: Bethesda Marriott, 5151 Pooks Hill Panel: Criminal Justice 3 Committees. Parklawn Building, 5600 Fishers Lane, Road, Bethesda, Maryland 20814. Contact: Diane McMenamin, Division of Rockville, MD 20857. Closed: June 10, 2002 to Adjournment. Extramural Activities, Policy and Review, Committee Name: SAMSHA Special Panel: CMHS, Community Action Grants, Parklawn Building, 5600 Fishers Lane, Emphasis Panel 1 (SEP I). PA 02–001. Rockville, Maryland 20857. Meeting Date: August 19–23, 2002. Contact: Diane McMenamin, Division of Committee Name: SAMSHA Special Place: Bethesda Marriott, 5151 Pooks Hill Extramural Activities, Policy and Review, Emphasis Panel 1 (SEP I) Road, Bethesda, MD 20814. Parklawn Building, 5600 Fishers Lane, Meeting Date: July 29–August 2, 2002. Closed: August 19, 2002 to Adjournment. Rockville, Maryland 20857. Place: Bethesda Marriott, 5151 Pooks Hill Panel: Targeted Capacity Expansion/HIV, 5 Committee Name: SAMSHA Special Road Bethesda, Maryland 20814. Committees. Emphasis Panel 1 (SEP I). Closed: July 29, 2002 to Adjournment. Contact: Diane McMenamin, Division of Meeting Date: June 10–14, 2002. Panel: Treatment for Homeless 4 Extramural Activities, Policy and Review, Place: Bethesda Marriott, 5151 Pooks Hill Committees. Parklawn Building, 5600 Fishers Lane, Road, Bethesda, Maryland 20814. Contact: Diane McMenamin, Division of Rockville, MD 20857. Closed: June 10, 2002 to Adjournment. Extramural Activities, Policy and Review, Committee Name: SAMSHA Special Panel: CSAT, Targeted Capacity Expansion Parklawn Building, 5600 Fishers Lane, Emphasis Panel 1 (SEP I). TI 02–009 3 Committees. Rockville, Maryland 20857. Meeting Date: August 26–30, 2002. Contact: Diane McMenamin, Division of Committee Name: SAMSHA Special Place: Bethesda Marriott, 5151 Pooks Hill Extramural Activities, Policy and Review, Emphasis Panel 1 (SEP I) Road, Bethesda, MD 20814. Parklawn Building, 5600 Fishers Lane, Meeting Date: July 29–August 2, 2002. 2 Closed: August 26, 2002 to Adjournment. Rockville, Maryland 20857. Committees. Panel: Youth Violence Prevention, 5 Committee Name: SAMSHA Special Place: Bethesda Marriott, 5151 Pooks Hill Committees. Emphasis Panel 1 (SEP I). Road, Bethesda, Maryland 20814. Contact: Diane McMenamin, Division of Meeting Date: July 15–19, 2002. Closed: July 29 to Adjournment. Extramural Activities, Policy and Review,

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Parklawn Building, 5600 Fishers Lane, Committee Name: SAMSHA Special and real property that HUD has Rockville, MD 20857. Emphasis Panel 1 (SEP I). reviewed for suitability for use to assist Committee Name: SAMSHA Special Meeting Date: September 16–20, 2002. the homeless. Today’s Notice is for the Emphasis Panel 1 (SEP I). Place: Bethesda Marriott, 5151 Pooks Hill purpose of announcing that no Road, Bethesda, MD 20814. Meeting Date: August 26–30, 2002. additional properties have been Place: Bethesda Marriott, 5151 Pooks Hill Closed: September 16, 2002. Road, Bethesda, MD 20814. Panel: Methadone/Ecstasy Implementation determined suitable or unsuitable this Closed: August 26, 2002 to Adjournment. and Infrastructure, 3 Committees. week. Panel: Adolescent Residential Treatment, 3 Contact: Diane McMenamin, Division of Dated: May 17, 2002. Committees. Extramural Activities, Policy and Review, John D. Garrity, Contact: Diane McMenamin, Division of Parklawn Building, 5600 Fishers Lane, Extramural Activities, Policy and Review, Rockville, MD 20857. Director, Office of Special Needs Assistance Programs. Parklawn Building, 5600 Fishers Lane, Committee Name: SAMSHA Special Rockville, MD 20857. Emphasis Panel 1 (SEP I). [FR Doc. 02–12886 Filed 5–23–02; 8:45 am] Committee Name: SAMSHA Special Meeting Date: September 16–20, 2002. BILLING CODE 4210–29–M Emphasis Panel 1 (SEP I). Place: Bethesda Marriott, 5151 Pooks Hill Meeting Date: September 9–13, 2002. Road, Bethesda, MD 20814. Place: Bethesda Marriott, 5151 Pooks Hill Closed: September 16, 2002 to DEPARTMENT OF THE INTERIOR Road, Bethesda, MD 20814. Adjournment. Closed: September 9, 2002 to Panel: State Treatment Needs Assessment Office of the Secretary Adjournment. Program, 2 Committees. Panel: Child Trauma/Post Traumatic Stress Contact: Diane McMenamin, Division of Information Quality Guidelines TA Center. Extramural Activities, Policy and Review, Contact: Diane McMenamin, Division of Pursuant to Section 515 of the Parklawn Building, 5600 Fishers Lane, Treasury and General Government Extramural Activities, Policy and Review, Rockville, MD 20857. Parklawn Building, 5600 Fishers Lane, Appropriations Act for Fiscal Year Rockville, MD 20857. Dated: May 20, 2002. 2001 Committee Name: SAMSHA Special Coral Sweeney, Emphasis Panel 1 (SEP I). Review Specialist, Division of Extramural AGENCY: Office of the Secretary, Meeting Date: September 2–9, 2002. Activities and Review, Substance Abuse and Department of the Interior. Place: Bethesda Marriott, 5151 Pooks Hill Mental Health Services Administration. ACTION: Notice of Availability of Road, Bethesda, MD 20814. [FR Doc. 02–13108 Filed 5–23–02; 8:45 am] Proposed Information Quality Closed: September 2, 2002 to Guidelines. Adjournment. BILLING CODE 4162–20–P Panel: National Suicide Prevention SUMMARY: The U.S. Department of the Resource Center. Interior, is issuing these proposed Contact: Diane McMenamin, Division of DEPARTMENT OF HOUSING AND Extramural Activities, Policy and Review, URBAN DEVELOPMENT Information Quality Guidelines in order Parklawn Building, 5600 Fishers Lane, to comply with the guidance published Rockville, MD 20857. [Docket No. FR–4730–N–21] by the Office of Management and Committee Name: SAMSHA Special Budget in the Federal Register, Vol., 2, Emphasis Panel 1 (SEP I). Federal Property Suitable as Facilities No. 67, dated January 2, 2002, and re- Meeting Date: September 2–6, 2002. To Assist the Homeless issued February 22, 2002, Vol. 67, No. Place: Bethesda Marriott, 5151 Pooks Hill AGENCY: Office of the Assistant 36, for implementing section 515(a) of Road, Bethesda, MD 20814. the Treasury and General Government Closed: September 2, 2002 to Secretary for Community Planning and Adjournment. Development, HUD. Appropriations Act for Fiscal Year 2001 Panel: MH Violence Coordinating Center. ACTION: Notice. (Public Law 106–554; H.R. 5658). Contact: Diane McMenamin, Division of FOR FURTHER INFORMATION CONTACT: Extramural Activities, Policy and Review, SUMMARY: This Notice identifies Persons interested in reviewing the Parklawn Building, 5600 Fishers Lane, unutilized, underutilized, excess, and proposed Information Quality Rockville, MD 20857. surplus Federal property reviewed by Guidelines issued by the Office of the Committee Name: SAMSHA Special HUD for suitability for possible use to Secretary, U.S. Department of the Emphasis Panel 1 (SEP I). assist the homeless. Meeting Date: September 2–6, 2002. Interior, are encouraged to contact the Place: Bethesda Marriott, 5151 Pooks Hill EFFECTIVE DATE: May 24, 2002. Office of the Chief Information Officer Road, Bethesda, MD 20814. FOR FURTHER INFORMATION CONTACT: (Attn: Nancy Trent) 1849 C Street, NW., Closed: September 2, 2002 to Mark Johnston, Department of Housing Mail Stop 5312, Washington, DC 20240, Adjournment. and Urban Development, Room 7262, phone: 202–208–6051. The guidelines Panel: Anti-Drug Coalitions. 451 Seventh Street SW., Washington, may also be reviewed at Web site: Contact: Diane McMenamin, Division of DC 20410; telephone (202) 708–1234; www.mms.gov/whatsnew. Extramural Activities, Policy and Review, Parklawn Building, 5600 Fishers Lane, TTY number for the hearing- and SUPPLEMENTARY INFORMATION: The U.S. Rockville, MD 20857.. speech-impaired (202) 708–2565, (these Department of the Interior, its offices, Committee Name: SAMSHA Special telephone numbers are not toll-free), or and its eight component bureaus Emphasis Panel 1 (SEP I). call the toll-free Title V information line disseminate a wide variety of Meeting Date: September 9–13, 2002. at 1–800–927–7588. information to the public regarding the Place: Bethesda Marriott, 5151 Pooks Hill SUPPLEMENTARY INFORMATION: In Nation’s Federal lands, National Parks, Road, Bethesda, MD 20814. accordance with the December 12, 1988 natural resources, geographic and Closed: September 9, 2002. court order in National Coalition for the spatial data, wildlife and fisheries, and Panel: HIV/AIDS Planning & HIV/AIDS Homeless v. Veterans Administration, Indian lands. This document is the basis Services, 8 Committees. Contact: Diane McMenamin, Division of No. 88–2503–OG (D.D.C.), HUD for Department policy to ensure quality Extramural Activities, Policy and Review, publishes a Notice, on a weekly basis, of information disseminated. Interested Parklawn Building, 5600 Fishers Lane, identifying unutilized, underutilized, parties may submit comments not later Rockville, MD 20857. excess and surplus Federal buildings than 30 days from the date of this

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notice. Bureaus and offices are directed proposed within the States of Ohio, Environmental Policy Act regulations to publish by July 1, 2002, a notice of Indiana, Michigan, Iowa, Wisconsin, (40 CFR 1506.6). availability of their guidelines in the Minnesota, Illinois, and Missouri. The We specifically request information, Federal Register for public comment, scientific research is aimed at views, and opinions from the public with at least a 30-day comment period. enhancement of survival of the species through this Notice on the Federal Dated: May 10, 2002. in the wild. action, including the identification of any other aspects of the human P. Lynn Scarlett, Permit Number TE056264 environment not already identified in Assistant Secretary for Policy, Management the our EA. and Budget. Applicant: John Shuey, Indianapolis, Indiana. DATES: Written comments on the draft [FR Doc. 02–13158 Filed 5–23–02; 8:45 am] EA must be received on or before June BILLING CODE 4310–RK–M The applicant requests a permit to take male Mitchell’s satyr (Neonympha 24, 2002. mitchellii mitchellii) in Indiana for ADDRESSES: Persons wishing to review the draft EA may obtain a copy by DEPARTMENT OF THE INTERIOR genetic analysis. The scientific research is aimed at enhancement of survival of writing to the Field Supervisor, U.S. Fish and Wildlife Service the species in the wild. Fish and Wildlife Service, 646 Written data or comments should be Cajundome Boulevard, Suite 400, Endangered and Threatened Species submitted to the Regional Director, U.S. Lafayette, Louisiana 70506. If you wish Permit Applications Fish and Wildlife Service, Ecological to comment, you may submit comments Services Operations, 1 Federal Drive, by any one of several methods. You may AGENCY: Fish and Wildlife Service, Fort Snelling, Minnesota 55111–4056, mail comments to the Louisiana Field Interior. and must be received within 30 days of Office at the address listed above. You ACTION: Notice of receipt of application. the date of this publication. also may comment via the Internet to ‘‘[email protected]’’. Please submit The following applicants have Documents and other information comments over the internet as an ASCII applied for scientific research permits to submitted with this application are file avoiding the use of special conduct certain activities with available for review by any party who characters and any form of encryption. endangered species pursuant to sections requests a copy from the following Please also include your name and 10(a)(1)(A) and 10(c) of the Endangered office within 30 days of the date of return address in your internet message. Species Act of 1973, as amended (16 publication of this notice: U.S. Fish and If you do not receive a confirmation U.S.C. 1531, et seq.). Wildlife Service, Ecological Services Operations, 1 Federal Drive, Fort from us that we have received your Permit Number TE023664 Snelling, Minnesota 55111–4056, internet message, contact us directly at Applicant: Virgil Brack, Jr., Cincinnati, [email protected], Telephone the telephone numbers listed below (see Ohio. (612) 713–5343, or Fax (612) 713–5292. FURTHER INFORMATION CONTACT section). The applicant currently possesses a Finally, you may hand deliver Dated: May 2, 2002. comments to the Louisiana Field Office. permit to take (survey and hold) Gray T.J. Miller, bat (Myotis grisecens), Indiana bat Data or comments regarding the draft Acting Assistant Regional Director, Ecological EA should be submitted in writing to (Myotis sodalis), Ozark big-eared bat Services, Region 3, Fort Snelling, Minnesota. (Corynhorhinus townsendii ingens), and the Louisiana Field Office to be [FR Doc. 02–13077 Filed 5–23–02; 8:45 am] the Virginia big-eared bat adequately considered in the our (Corynhorhinus townsendii virginianus) BILLING CODE 4310–55–P decision-making process. Documents throughout the majority of the species will be available for public inspection by appointment during normal business ranges in 27 States. The applicant DEPARTMENT OF THE INTERIOR requests to expand activities into the hours at our Louisiana Field Office States of Connecticut, Delaware, Fish and Wildlife Service (Attn: Kevin Roy). Florida, and Nebraska. The scientific FOR FURTHER INFORMATION CONTACT: Mr. research is aimed at enhancement of Notice of Availability of a Draft Kevin Roy, Fish and Wildlife Biologist, survival of the species in the wild. Environmental Assessment for the (see ADDRESSES section), telephone: 337/ Delta Management at Fort St. Philip 291–3120 or 337/291–3100, facsimile: Permit Number TE056081 Project, Plaquemines Parish, Louisiana 337/291–3139. Applicant: EnviroScience, Inc., Stow, SUPPLEMENTARY INFORMATION: Ohio. AGENCY: Fish and Wildlife Service, The applicant requests a permit to Interior. Background take (capture and release) the following ACTION: Notice of document availability. The Delta Management at Fort St. listed unionid mussel species: fanshell Philip Project, is being funded through (Cyprogenia stegaria), purple catspaw SUMMARY: We, the Fish and Wildlife the Coastal Wetlands Planning, (Epioblasma obliquata obliquata), white Service, announce the availability of the Protection and Restoration Act on the catspaw (E. o. perobliqua), northern draft Environmental Assessment (EA) Tenth Priority Project List. The project riffleshell (E. torulosa rangiana), pink for the Delta Management at Fort St. purpose is to promote the formation of mucket pearlymussel (Lampsilis Philip Project. A more detailed emergent marsh through the abrupta), Higgins’ eye pearlymussel (L. description of the project is outlined in construction of artificial crevasses and higginsi), white wartyback (Plethobasus the Supplementary Information section earthen terraces. The project is located cicatricosus), orange-foot pimpleback below. A copy of the draft EA may be near the east bank of the Mississippi pearlymussel (P. cooperianus), clubshell obtained by sending a written request to River adjacent to Fort St. Philip in (Pleurobema clava), rough pigtoe (P. our Louisiana Field Office (see Plaquemines Parish, Louisiana. The plenum), fat pocketbook (Potamilus ADDRESSES section). Requests must be project area has experienced extensive capax), and winged mapleleaf mussel made in writing to be processed. This marsh loss since the mid 1970s, with (Quadrula fragosa). Activities are notice is provided pursuant to National loss rates as high as 8 percent per year.

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However, many areas are experiencing DEPARTMENT OF THE INTERIOR Document Availability marsh growth as sediment introduced Individuals wishing copies of the HCP Fish and Wildlife Service from the Mississippi River through a and associated documents for review natural crevasse is causing infilling of Notice of Availability of a Low-Effect should immediately contact the above open water areas. The preferred Habitat Conservation Plan and Receipt office. Documents also will be available alternative is to construct earthen of an Application for an Incidental Take for public inspection, by appointment, terraces and artificial crevasses to Permit for Construction of a Single- during normal business hours at the enhance the natural processes of marsh Family Residential Home Site on the above address. building now occurring in the project Dahle Property, Colorado Springs, Background area. Colorado Section 9 of the Act and Federal Public Comments Solicited AGENCY: Fish and Wildlife Service, regulation prohibit the ‘‘take’’ of a We solicit written comments on the Interior. species listed as endangered or threatened. Take is defined under the draft EA described. All comments ACTION: Notice of availability and Act, in part, as to kill, harm, or harass received by the date specified above receipt of application. a federally listed species. However, the will be considered in our decision- Service may issue permits to authorize making process. SUMMARY: This notice advises the public ‘‘incidental take’’ of listed species under Our practice is to make comments, that Lee J. Dahle has applied to the Fish limited circumstances. Incidental Take including names and home addresses of and Wildlife Service for an incidental is defined under the Act as take of a respondents, available for public review take permit pursuant to section listed species that is incidental to, and during regular business hours. 10(a)(1)(B) of the Endangered Species not the purpose of, the carrying out of Individual respondents may request that Act (Act) of 1973, as amended. The an otherwise lawful activity under we withhold their home address from proposed permit would authorize the limited circumstances. Regulations the administrative record. We will incidental take of the Preble’s meadow governing permits for threatened species honor such requests to the extent jumping mouse (Zapus hudsonius are promulgated in 50 CFR 17.32. allowable by law. There may also be preblei), federally listed as threatened, The Dahle Property is located at 17 El through loss and modification of its circumstances in which we would Dorado Lane, Lot 5, Block 4 in habitat associated with construction and withhold from the administrative record Thunderbird Estates Subdivision, along occupation of a residential home site at a respondent’s identity, as allowable by Monument Creek, in the Section 6, the Dahle Property, Colorado Springs, law. If you wish us to withhold your Township 13 South, Range 66 West, Colorado. The duration of the permit 1 name and address, you must state this Southwest ⁄4 in the Pikeview would be 5 years from the date of quandrangle, in the Town of Colorado prominently at the beginning of your issuance. Springs, El Paso County, State of comments. We will not, however, We announce the receipt of the Colorado. The project will involve 0.65 consider anonymous comments. We applicant’s incidental take permit acres, but will directly impact a will make all submissions from application that includes a proposed maximum of 0.15 acres that may result organizations or businesses, and from Low-Effect Habitat Conservation Plan in incidental take of the Preble’s individuals identifying themselves as (HCP) for the Preble’s meadow jumping meadow jumping mouse. The site will representatives or officials of mouse for the Dahle Property. The impact upland areas only. organizations or businesses, available proposed HCP is available for public Alternatives considered in addition to for public inspection in their entirety. comment. It fully describes the the Proposed Action were awaiting Author proposed project and the measures the approval of the El Paso County Regional applicant would undertake to minimize Habitat Conservation Plan, and no The primary author of this document and mitigate project impacts to the action. The last alternative eliminated is Kevin Roy (see ADDRESSES Section). Preble’s meadow jumping mouse. All potential take of Preble’s. The onsite, comments on the HCP and permit offsite, and cumulative impacts of the Authority application will become part of the proposed Project and all associated development and construction activities The authority for this action is the administrative record and will be and mitigation activities proposed by National Environmental Quality available to the public. the HCP will have no significant impact Improvement Act of 1970, as amended DATES: Written comments on the permit on other threatened or endangered (42 U.S.C. 4371 et seq.) and CEQ application, and Habitat Conservation species, vegetation, wildlife, wetlands, Regulations 40 CFR 1506.6. Plan should be received on or before geology/soils, land use, water resources, Dated: May 6, 2002. June 24, 2002. air and water quality, or cultural Cynthia K. Dohner, ADDRESSES: Comments regarding the resources. None of the proposed impacts Acting Regional Director. permit application and HCP should be occur within the riparian corridor. All of the proposed impacts are in upland [FR Doc. 02–13078 Filed 5–23–02; 8:45 am] addressed to LeRoy Carlson, Field Supervisor, U.S. Fish and Wildlife areas inside the 100-year floodplain. BILLING CODE 4310–55–P Service, Colorado Field Office, 755 Utilizing the mouse protection habitat Parfet Street, Suite 361, Lakewood, definition, the proposed development Colorado 80215. could impact up to 0.15 acre of potential mouse habitat for the residential lot. FOR FURTHER INFORMATION CONTACT: Ms. The mitigation will likely provide a net Kathleen Linder, Fish and Wildlife benefit to the Preble’s mouse and other Biologist, Colorado Field Office, wildlife by improving or creating new telephone (303) 275–2370. riparian areas, planting of native SUPPLEMENTARY INFORMATION: grasses, and protecting existing habitat

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along Monument Creek from any future Service, the California Department of and sulfur underground mining development. Fish and Game, and the Nevada operations, in Alpine County, Only one federally listed species, the Division of Environmental Protection, California. Anaconda developed the threatened Preble’s meadow jumping announces the release for public review former underground mine into an open mouse, occurs onsite and has the of the Leviathan Mine Natural Resource pit sulfur mine and operated the Mine potential to be adversely affected by the Damage Assessment Plan—Public through 1962. Anaconda sold the Mine project. To mitigate impacts that may Release Draft (Assessment Plan). The in early 1963, but no further mining result from incidental take, the HCP Plan was developed by the Leviathan operations took place thereafter. provides mitigation for the residential Mine Council Natural Resource Releases of hazardous substances site by protection of the Monument Trustees, consisting of representatives of from the Mine began in the 1950s and Creek corridor onsite and its associated the Tribe and agencies listed above, to continue today. Infiltration of riparian areas from all future assess injuries to natural resources precipitation into and through the adits development through the enhancement resulting from releases of hazardous (tunnels from the former underground of 0.5 acre through native grass planting, substances from the Leviathan Mine in mine), open pit, and overburden piles, shrub planting, weed control, Alpine County, California. The along with direct contact of mine wastes preservation in a native and unmowed Assessment Plan describes the proposed with surface waters, has created acid condition, and the placement of the approach for determining and mine drainage (AMD), which has been proposed building site closer to the road quantifying natural resource injuries released, and continues to be released and farther away from mouse habitat. and calculating damages associated with into the environment. AMD, which Measures will be taken during these injuries. contains arsenic, copper, sulfuric acid, construction to minimize impact to the DATES: Comments on the Assessment and other hazardous substances, has habitat including limited site access and Plan must arrive by June 24, 2002. continued to be released into the placement of spoils piles only at the ADDRESSES: You may mail or hand groundwater and into the surface waters front end of the lot, away from the deliver written comments to Mr. Wayne and sediments in Aspen and Leviathan creek. All of the proposed mitigation Nordwall, Regional Director, Bureau of Creeks, and from there into Bryant area is within the boundaries of the Indian Affairs, Western Regional Office, Creek and the East Fork Carson River. Dahle property, all of which is included P.O. Box 10, Phoenix, AZ 85001; or 400 Bryant Creek begins in California and in the drainage basin of Monument N. Fifth Street, Phoenix, AZ 85004; or crosses into Nevada, passing through Creek. by facsimile (602) 379–4413. several Indian Trust Allotments. Bryant This notice is provided pursuant to The Assessment Plan is available for Creek then flows into the East Fork section 10(c) of the Act. We will review, by appointment and during Carson River. Releases of AMD from the evaluate the permit application, the normal business hours, at the office Mine have resulted in fish kills in Plan, and comments submitted therein locations of the following officials: (1) Leviathan and Bryant Creeks and the to determine whether the application Curtis Milsap, Bureau of Indian Affairs, East Fork Carson River. meets the requirements of section 10(a) Western Nevada Agency, 1677 Hot From the early 1980s, when the State of the Act. If it is determined that those Springs Road, Carson City, Nevada of California acquired ownership of the requirements are met, a permit will be 89706, telephone (775) 887–3570; (2) Mine, through the late 1990s, the issued for the incidental take of the John Krause, Bureau of Indian Affairs, Lahontan Regional Water Quality Preble’s meadow jumping mouse in Western Regional Office, 400 N. Fifth Control Board (LRWQCB) constructed conjunction with the construction and Street, Phoenix, Arizona 85004, and operated the Leviathan Mine occupation of a single-family residential telephone (602) 379–3723; (3) Robert Pollution Abatement Project. However, lot on the Dahle Property. The final Greenbaum, Washoe Tribe of Nevada this project did not eliminate the permit decision will be made no sooner and California, 919 U.S. Hwy. 395 releases of hazardous substances, and it than 30 days from the date of this South, Gardnerville, Nevada 89410, redirected several sources of AMD to notice. telephone (775) 265–4191 ext. 155; (4) new discharge points. Despite Dated: May 8, 2002. Stan Wiemeyer, U.S. Fish & Wildlife additional efforts by the LRWQCB, the Service, Nevada Fish & Wildlife Office, David E. Heffernan, U.S. Environmental Protection Agency 1340 Financial Blvd., Suite 234, Reno, Acting Regional Director, Region 6. (EPA), and the Atlantic Richfield Nevada 89502, telephone (775) 861– Company (ARC), the successor in [FR Doc. 02–13076 Filed 5–23–02; 8:45 am] 6300; and (5) Melanie Markin, U.S. Fish BILLING CODE 4310–55–P interest to its wholly owned subsidiary, & Wildlife Service, 2800 Cottage Way, Anaconda, to reduce the release of W–2605, Sacramento, California 95825, hazardous substances from the Mine, telephone (916) 414–6638. In addition, DEPARTMENT OF THE INTERIOR releases of AMD continued to have the Assessment Plan is available for deleterious effects on natural resources Bureau of Indian Affairs review at the Alpine County Library, at the Mine and downstream. 270 Laramie Street, Markleeville, In May 2000, EPA added the Notice of Availability, Assessment Plan California 96120, telephone (530) 694– Leviathan Mine Superfund Site to the for Natural Resources Injured by 2120; and on the Nevada Division of National Priorities List [65 FR 30482]. Releases of Hazardous Substances Environmental Protection Web site at Also in 2000, EPA issued separate From the Leviathan Mine http://ndep.state.nv.us/ admin/ orders to the LRWQCB and ARC leviathan.htm. AGENCY: Bureau of Indian Affairs, pursuant to section 106(a) of the Interior. FOR FURTHER INFORMATION CONTACT: Comprehensive Environmental Robert Greenbaum, (775) 265–4191 ext. ACTION: Notice. Response, Compensation, and Liability 155. Act of 1980, as amended (CERCLA) [42 SUMMARY: The Bureau of Indian Affairs, SUPPLEMENTARY INFORMATION: In 1951, U.S.C. 9606(a)] to engage in hazardous on behalf of the Washoe Tribe of Nevada the Anaconda Copper Mining Company waste removal actions. EPA’s order to and California, the U.S. Fish and purchased the Leviathan Mine property, ARC also requires ARC to develop long- Wildlife Service, the U.S. Forest the former site of small copper sulfate term response plans, including a

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Remedial Investigation/ Feasibility available for public review at the fragmented shell beads, 1 shell pendant, Study. mailing addresses shown in the 8 bird bone flutes, 3 fragments of quartz, Pursuant to section 107(f) of CERCLA ADDRESSES section, during regular 2 fragments of mica, and 1 fragment of [42 U.S.C. 9607(f)], the Leviathan Mine business hours, 8:00 a.m. to 4:30 p.m., turquoise. Council Natural Resource Trustees Monday through Friday, except Based on the ceramic types recovered (Trustees) are representatives of federal, holidays. Individual respondents may from this site, Pecos Pueblo was state, and tribal government entities request confidentiality. If you wish us to occupied between A.D. 1300 and 1700. with trust authority over natural withhold your name and/or address resources potentially injured by releases from public review or from disclosure Historic records document occupation of hazardous substances from the under the Freedom of Information Act, at the site until 1838 when the last Leviathan Mine. While EPA’s focus is you must state this prominently at the inhabitants left the pueblo and went to protecting human health and the beginning of your written comment. the Pueblo of Jemez. In 1936, an Act of environment, the Trustees have the Such requests will be honored to the Congress recognized the Pueblo of authority to seek compensation from extent allowed by law. We will not, Jemez as a ‘‘consolidation’’ and potentially responsible parties (PRPs) however, consider anonymous ‘‘merger’’ of the Pueblo of Pecos and the for past, present, and future injuries to comments. All submissions from Pueblo of Jemez; this act further trust natural resources caused by organizations or businesses, and from recognizes that all property, rights, releases from the Mine. Such resources individuals identifying themselves as titles, interests, and claims of both include, but are not limited to, representatives or officials of pueblos were consolidated under the groundwater, surface water, sediment, organizations or businesses, will be Pueblo of Jemez. fish (including Lahontan Cutthroat made available for public inspection in In consultation with members of the Trout) and other aquatic biota, their entirety. floodplain soils, riparian vegetation, and Eagle Watcher’s Society, as well as other wildlife in and around the Leviathan Dated: May 14, 2002. traditional religious leaders of the Creek and Bryant Creek drainages, and Neal A. McCaleb, Pueblo of Jemez, it has been determined a portion of the East Fork Carson River Assistant Secretary—Indian Affairs. by officials of the Robert S. Peabody drainage. The assessment area includes [FR Doc. 02–13060 Filed 5–23–02; 8:45 am] Museum of Archaeology that these the area surrounding and downstream BILLING CODE 4310–W7–P objects are integral to present-day from the Leviathan Mine in Alpine religious practice at the Pueblo. County, California; the Toiyabe National Based on the above-mentioned DEPARTMENT OF THE INTERIOR Forest; Indian Trust Allotments; information, officials of the Robert S. Douglas County, Nevada; and the National Park Service Peabody Museum of Archaeology have Washoe Indian Community of determined that, pursuant to 43 CFR Dresslerville. Notice of Intent to Repatriate Cultural The Assessment Plan developed by 10.2 (d)(3), these cultural items are Items in the Possession of the Robert the Trustees is intended to assess specific ceremonial objects needed by S. Peabody Museum of Archaeology, injuries to natural resources resulting traditional Native American religious Phillips Academy, Andover, MA. from releases of hazardous substances leaders for the practice of traditional from the Leviathan Mine. The AGENCY: National Park Service, Interior. Native American religions by their present-day adherents. Officials of the Assessment Plan describes the proposed ACTION: Notice. approach for determining and Robert S. Peabody Museum of quantifying natural resource injuries Notice is hereby given in accordance Archaeology also have determined that, and calculating damages associated with with the Native American Graves pursuant to 43 CFR 10.2 (e), there is a these injuries. By developing an Protection and Repatriation Act relationship of shared group identity Assessment Plan, the Trustees can (NAGPRA), 43 CFR 10.10 (a)(3), of the that can be reasonably traced between ensure that the natural resource damage intent to repatriate cultural items in the these sacred objects and the Pueblo of assessment will be completed at a possession of the Robert S. Peabody Jemez, New Mexico. reasonable cost. The Trustees also Museum of Archaeology, Phillips This notice has been sent to officials intend for the Assessment Plan to Academy, Andover, MA, that meet the of the Pueblo of Jemez, New Mexico. communicate proposed assessment definition of ‘‘sacred objects’’ under methods to PRPs and to the public in an Section 2 of the Act. Representatives of any other Indian tribe effective manner so that they can This notice is published as part of the that believes itself to be culturally productively participate in the National Park Service’s administrative affiliated with these sacred objects assessment process. The ultimate goal of responsibilities under NAGPRA, 43 CFR should contact Malinda Blustain, the assessment is to seek damages from 10.2 (c). The determinations within this Interim Director, Robert S. Peabody PRPs for the purpose of developing notice are the sole responsibility of the Museum, Phillips Academy, Andover, projects which will restore, rehabilitate, museum, institution, or Federal agency MA, telephone (978) 749-4496 before replace, or acquire the equivalent of the that has control of these cultural items. June 24, 2002. Repatriation of these injured natural resources and the The National Park Service is not sacred objects to the Pueblo of Jemez, services they previously provided [43 responsible for the determinations New Mexico, may begin after that date CFR 11.81(a)(1)]. The Trustees may within this notice. if no additional claimants come amend the Assessment Plan, but any Between 1915 and 1929, these forward. cultural items were recovered from significant amendments will be made Dated: April 16, 2002. available for public review [43 CFR several locations at Pecos Pueblo, NM, 11.32(e)]. during excavations conducted by the Robert Stearns, Phillips Academy under the direction of Manager, National NAGPRA Program. Public Comment Availability Alfred Vincent Kidder. The 63 objects [FR Doc. 02–13162 Filed 5–23–02; 8:45 am] Comments, including names and are 16 pipes, fragments of 3 ceramic BILLING CODE 4310–70–S home addresses of respondents, will be vessels, 4 effigies, 25 whole and

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DEPARTMENT OF LABOR modifications issues, must be made a Volume IV part of every contract for performance of Indiana Employment Standards the described work within the IN020006 (Mar 1, 2002) Administration; Wage and Hour geographic area indicated as required by Volume V Division an applicable Federal prevailing wage None law and 29 CFR part 5. The wage rates Arkansas Minimum Wages for Federal and and fringe benefits, notice of which is Federally Assisted Construction; AR020008 (Mar. 1, 2002) published herein, and which are AR020023 (Mar. 1, 2002) General Wage Determination Decisions contained in the Government Printing AR020027 (Mar. 1, 2002) General wage determination decisions Office (GPO) document entitled Missouri of the Secretary of Labor are issued in ‘‘General Wage Determinations Issued M0020001 (Mar. 1, 2002) M0020003 (Mar. 1, 2002) accordance with applicable law and are Under The Davis-Bacon And Related M0020004 (Mar. 1, 2002) based on the information obtained by Acts,’’ shall be the minimum paid by M0020006 (Mar. 1, 2002) the Department of Labor from its study contractors and subcontractors to M0020007 (Mar. 1, 2002) of local wage conditions and data made laborers and mechanics. M0020010 (Mar. 1, 2002) available from other sources. They Any person, organization, or M0020015 (Mar. 1, 2002) specify the basic hourly wage rates and government agency having an interest in M0020019 (Mar. 1, 2002) fringe benefits which are determined to the rates determined as prevailing is M0020020 (Mar. 1, 2002) be prevailing for the described classes of encouraged to submit wage rate and M0020041 (Mar. 1, 2002) fringe benefit information for M0020043 (Mar. 1, 2002) laborers and mechanics employed on M0020047 (Mar. 1, 2002) construction projects of a similar consideration by the Department. M0020049 (Mar. 1, 2002) character and in the localities specified Further information and self- M0020051 (Mar. 1, 2002) therein. explanatory forms for the purpose of M0020052 (Mar. 1, 2002) The determinations in these decisions submitting this data may be obtained by M0020053 (Mar. 1, 2002) of prevailing rates and fringe benefits writing to the U.S. Department of Labor, M0020055 (Mar. 1, 2002) have been made in accordance with 29 Employment Standards Administration, M0020056 (Mar. 1, 2002) CFR part 1, by authority of the Secretary Wage and Hour Division, Division of M0020057 (Mar. 1, 2002) M0020059 (Mar. 1, 2002) of Labor pursuant to the provisions of Wage Determinations, 200 Constitution the Davis-Bacon Act of March 3, 1931, Avenue, NW., Room S–3014, Volume VI as amended (46 Stat. 1494, as amended, Washington, DC 20210. None 40 U.S.C. 276a) and of other Federal Modification to General Wage Volume VII statutes referred to in 29 CFR part 1, Determination Decisions Appendix, as well as such additional California CA020009 (Mar. 1, 2002) statutes as may from time to time be The number of the decisions listed to the Government Printing Office CA020033 (Mar. 1, 2002) enacted containing provisions for the CA020036 (Mar. 1, 2002) payment of wages determined to be document entitled ‘‘General Wage prevailing by the Secretary of Labor in Determination Issued Under the Davis- General Wage Determination accordance with the Davis-Bacon Act. Bacon and related Acts’’ being modified Publication The prevailing rates and fringe benefits are listed by Volume and State. Dates of General wage determinations issued determined in these decisions shall, in publication in the Federal Register are under the Davis-Bacon and related Acts, accordance with the provisions of the in parentheses following the decisions including those noted above, may be foregoing statutes, constitute the being modified. found in the Government Printing Office minimum wages payable on Federal and Volume I (GPO) document entitled ‘‘General Wage federally assisted construction projects Connecticut determinations Issued Under the Davis- to laborers and mechanics of the CT020002 (Mar. 1, 2002) Bacon and Related Acts’’. This specified classes engaged on contract CT020005 (Mar. 1, 2002) publication is available at each of the 50 work of the character and in the Volume II Regional Government Depository localities described therein. District of Columbia Libraries and many of the 1,400 Good cause is hereby found for not DC020001 (Mar. 1, 2002) Government Depository Libraries across utilizing notice and public comment DC020003 (Mar. 1, 2002) the country. procedure thereon prior to the issuance Delaware General wage determinations issued of these determinations as prescribed in DE020002 (Mar. 1, 2002) under the Davis-Bacon and related Acts 5 U.S.C. 553 and not providing for delay DE020005 (Mar. 1, 2002) are available electronically at no cost on in the effective date as prescribed in that DE020009 (Mar. 1, 2002) the Government Printing Office site at Maryland section, because the necessity to issue MD020001 (Mar. 1, 2002) www.access.gpo.gov/davisbacon. They current construction industry wage MD020002 (Mar. 1, 2002) are also available electronically by determinations frequently and in large MD020010 (Mar. 1, 2002) subscription to the Davis-Bacon Online volume causes procedures to be MD020017 (Mar. 1, 2002) Service (http:// practical and contrary to the public MD020031 (Mar. 1, 2002) davisbacon.fedworld.gov) of the interest. MD020035 (Mar. 1, 2002) National Technical Information Service General wage determination MD020036 (Mar. 1, 2002) MD020043 (Mar. 1, 2002) (NTIS) of the U.S. Department of decisions, and modifications and MD020048 (Mar. 1, 2002) Commerce at 1–800–363–2068. This supersedeas decisions thereto, contain MD020057 (Mar. 1, 2002) subscription offers value-added features no expiration dates and are effective MD020058 (Mar. 1, 2002) such as electronic delivery of modified from their date of notice in the Federal Pennsylvania wage decisions directly to the user’s Register, or on the date written notice PA020059 (Mar. 1, 2002) desktop, the ability to access prior wage is received by the agency, whichever is West Virginia decisions issued during the year, earlier. These decisions are to be used WV020002 (Mar. 1, 2002) WV020010 (Mar. 1, 2002) extensive Help desk Support, etc. in accordance with the provisions of 29 Hard-copy subscriptions may be CFR parts 1 and 5. Accordingly, the Volume III purchased from: Superintendent of applicable decision, together with any None Documents, U.S.

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Government Printing Office, Washington, DC 20212, telephone Agency: Bureau of Labor Statistics. Washington, DC 20402, (202) 512–1800. number 202–691–7628 (this is not a toll Title: CPS Volunteer Supplement. When ordering hard-copy free number). OMB Number: 1220–NEW. subscription(s), be sure to specify the FOR FURTHER INFORMATION CONTACT: Affected Public: Households. State(s) of interest, since subscriptions Amy A. Hobby, BLS Clearance Officer, Total Respondents: 58,000. may be ordered for any or all of the six telephone number 202–691–7628. (See Frequency: On occasion. Total Responses: 116,000. separate Volumes, arranged by State. ADDRESSES section.) Average Time Per Response: 3 Subscriptions include an annual edition SUPPLEMENTARY INFORMATION: (issued in January or February) which minutes. includes all current general wage I. Background Estimated Total Burden Hours: 5,800 determinations for the States covered by The September 2002 CPS Volunteer hours. Total Burden Cost (capital/startup): each volume. Throughout the remainder Supplement will be conducted at the $0. of the year, regular weekly updates will request of the USA Freedom Corps. The Total Burden Cost (operating/ be distributed to subscribers. Volunteer Supplement will provide maintenance): $0. Signed at Washington, DC, this 16th day of information on the total number of Comments submitted in response to May 2002. individuals in the U.S. involved in this notice will be summarized and/or Carl J. Poleskey, unpaid volunteer activities, factors that included in the request for Office of Chief, Branch of Construction Wage motivate volunteerism, measures of the Management and Budget approval of the Determinations. frequency or intensity with which information collection request; they also [FR Doc. 02–12811 Filed 5–23–02; 8:45 am] individuals volunteer, types of will become a matter of public record. BILLING CODE 4510–27–M organizations that facilitate volunteerism, and activities in which Signed at Washington, DC, this 20th day of volunteers participate. May, 2002. DEPARTMENT OF LABOR Because the Volunteer Supplement is Jesu´ s Salinas, part of the CPS, the same detailed Acting Chief, Division of Management Bureau of Labor Statistics demographic information collected in Systems, Bureau of Labor Statistics. the CPS will be available on [FR Doc. 02–13094 Filed 5–23–02; 8:45 am] Proposed Collection; Comment respondents to the Supplement. BILLING CODE 4510–24–P Request Comparisons of volunteer activities will ACTION: Notice. be possible across characteristics such as sex, race, age, and educational NATIONAL COUNCIL ON DISABILITY SUMMARY: The Department of Labor, as attainment of the respondent. It is part of its continuing effort to reduce intended that the Supplement will be Advisory Committee Meeting/ paperwork and respondent burden, conducted with some regularity in order Teleconference conducts a pre-clearance consultation to gauge changes in volunteerism. AGENCY: program to provide the general public National Council on Disability and Federal agencies with an II. Desired Focus of Comments (NCD). opportunity to comment on proposed The Bureau of Labor Statistics is TIMES AND DATES: 4 p.m., EDT, June 13, and/or continuing collections of particularly interested in comments 2002 (teleconference); 4 p.m. EDT, July information in accordance with the that: 24, 2002 (meeting); 4 p.m. EDT, Paperwork Reduction Act of 1995 • Evaluate whether the proposed September 18, 2002 (teleconference). (PRA95) [44 U.S.C. 3506(c)(2)(A)]. This collection of information is necessary PLACE: National Council on Disability, program helps to ensure that requested for the proper performance of the 1331 F Street, NW., Suite 850, data can be provided in the desired functions of the agency, including Washington, DC. format, reporting burden (time and whether the information will have STATUS: All parts of these meetings will financial resources) is minimized, practical utility; be open to the public. Those interested • collection instruments are clearly Evaluate the accuracy of the in participating in either the meeting or understood, and the impact of collection agency’s estimate of the burden of the the conference call should contact the requirements on respondents can be proposed collection of information, appropriate staff member listed below. properly assessed. Currently, the Bureau including the validity of the Due to limited resources, only a few of Labor Statistics (BLS) is soliciting methodology and assumptions used; • telephone lines will be available for the comments concerning the proposed new Enhance the quality, utility, and conference call. clarity of the information to be collection of the ‘‘Current Population MATTERS TO BE CONSIDERED: Roll call, Survey (CPS) Volunteer Supplement.’’ A collected; and • Minimize the burden of the announcements, reports, new business, copy of the proposed information adjournment. collection request (ICR) can be obtained collection of information on those who CONTACT PERSON FOR MORE INFORMATION: by contacting the individual listed are to respond, including through the Gerrie Drake Hawkins, Ph.D., Program below in the addresses section of this use of appropriate automated, Specialist, National Council on notice. electronic, mechanical, or other technological collection techniques or Disability, 1331 F Street NW., Suite 850, DATES: Written comments must be other forms of information technology, Washington, DC 20004; 202–272–2004 submitted to the office listed in the e.g., permitting electronic submissions (voice), 202–272–2074 (TTY), 202–272– addresses section of this notice on or of responses. 2022 (fax), [email protected] (e-mail). before July 23, 2002. Youth Advisory Committee Mission: ADDRESSES: Send comments to Amy A. III. Current Action The purpose of NCD’s Youth Advisory Hobby, BLS Clearance Officer, Division Office of Management and Budget Committee is to provide input into NCD of Management Systems, Bureau of clearance is being sought for the CPS activities consistent with the values and Labor Statistics, Room 4080, 2 Volunteer Supplement. goals of the Americans with Disabilities Massachusetts Avenue, NE., Type of Review: New Collection. Act.

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Dated: May 7, 2002. The Licensee pay a civil penalty in For the Nuclear Regulatory Commission. Ethel D. Briggs, the amount of $55,000 within 30 days William F. Kane, Executive Director. of the date of this Order, in accordance Deputy Executive Director for Reactor [FR Doc. 02–13050 Filed 5–23–02; 8:45 am] with NUREG/BR–0254. In addition, at Programs. BILLING CODE 6820–MA–P the time of making the payment, the Appendix to Order Imposing Civil licensee shall submit a statement Penalty; NRC Evaluation and indicating when and by what method Conclusion of Licensee’s Requests NUCLEAR REGULATORY payment is made, to the Director, Office COMMISSION of Enforcement, U.S. Nuclear Regulatory On May 14, 2001, a Notice of Commission, One White Flint North, Violation and Proposed Imposition of [License No. 50–483, Docket No. NPF–30, Civil Penalty (Notice) was issued for a EA–01–005] 11555 Rockville Pike, Rockville, MD 20852–2738. violation of 10 CFR 50.7 identified In the Matter of AmerenUE, Callaway during an NRC investigation. The V Nuclear Plant; Order Imposing Civil Licensee responded to the Notice in a Monetary Penalty letter dated January 22, 2002. In its The Licensee may request a hearing response, the Licensee denied the I within 30 days of the date of this Order. violation, requesting withdrawal of the Where good cause is shown, violation and remission of the proposed AmerenUE (Licensee) is the holder of consideration will be given to extending civil penalty. The NRC’s evaluation and License No. NPF–30 issued by the the time to request a hearing. A request conclusion regarding the licensee’s Nuclear Regulatory Commission (NRC for extension of time must be made in response are as follows: or Commission) on October 18, 1984. writing to the Director, Office of The license authorizes the Licensee to Restatement of Violation Enforcement, U.S. Nuclear Regulatory operate the Callaway Nuclear Plant in Commission, Washington, DC 20555, 10 CFR 50.7(a) prohibits accordance with the conditions discrimination by a Commission specified therein. and include a statement of good cause for the extension. A request for a licensee against an employee for II hearing should be clearly marked as a engaging in certain protected activities. An investigation of the Licensee’s ‘‘Request for an Enforcement Hearing’’ Discrimination includes discharge or activities was completed in November and shall be submitted to the Secretary, other actions relating to the 2000. The results of the investigation U.S. Nuclear Regulatory Commission, compensation, terms, conditions, and indicated that the Licensee had not ATTN: Rulemakings and Adjudications privileges of employment. Under 10 conducted its activities in full Staff, Washington, DC 20555. Copies CFR 50.7(a)(1)(i), the activities that are compliance with NRC requirements. A also shall be sent to the Director, Office protected include, but are not limited to, written Notice of Violation and of Enforcement, U.S. Nuclear Regulatory the reporting by an employee to his Proposed Imposition of Civil Penalty Commission, Washington, DC 20555, to employer information about alleged regulatory violations. (Notice) was served upon the Licensee the Assistant General Counsel for by letter dated May 14, 2001. The Notice Materials Litigation and Enforcement at Contrary to the above, The Wackenhut stated the nature of the violation, the the same address, and to the Regional Corporation (TWC), a contractor of Union Electric, a 10 CFR part 50 provisions of the NRC’s requirements Administrator, NRC Region IV, 611 licensee, and Union Electric that the Licensee had violated, and the Ryan Plaza Drive, Suite 400, Arlington, discriminated against a security officer amount of the civil penalty proposed for Texas 76011. the violation. and a training instructor for having The Licensee responded to the Notice If a hearing is requested, the engaged in protected activity. in a letter dated January 22, 2002. In its Commission will issue an Order Specifically, on October 27, 1999, the response, the Licensee denied the designating the time and place of the security officer and the training violation, requesting withdrawal of the hearing. If the Licensee fails to request instructor identified to TWC a violation violation and remission of the proposed a hearing within 30 days of the date of of NRC requirements at the Callaway civil penalty. this Order (or if written approval of an Nuclear Plant, namely that TWC had extension of time in which to request a hired and assigned an individual to the III hearing has not been granted), the security organization when that After consideration of the Licensee’s provisions of this Order shall be individual did not have a high school response and the statements of fact, effective without further proceedings. If diploma or equivalent. The hiring of explanation, and argument for payment has not been made by that this individual was in violation of 10 mitigation contained therein, the NRC time, the matter may be referred to the CFR part 73, Appendix B, Section staff has determined that the violation Attorney General for collection. I.A.1.a, which provides that prior to occurred as stated in the May 14, 2001 employment or assignment to a security Notice of Violation and Proposed In the event the Licensee requests a organization, an individual must Imposition of Civil Penalty. Therefore, hearing as provided above, the issues to possess a high school diploma or pass the NRC has determined that the civil be considered at such hearing shall be: an equivalent performance examination. penalty proposed for this violation Whether the Licensee was in violation Based at least, in part, on this protected should be imposed. of the Commission’s requirements as set activity, TWC unfavorably terminated forth in the Notice of Violation the security officer’s employment for IV referenced in Section II, and whether on lack of trustworthiness and gave a In view of the foregoing and pursuant the basis of such violation, this Order written reprimand to the training to Section 234 of the Atomic Energy Act should be sustained. instructor on November 19, 1999, and of 1954, as amended (Act), 42 U.S.C. Dated this 16th day of May, 2002. Union Electric revoked the security 2282, and 10 CFR 2.205, It is hereby officer’s unescorted access authorization ordered that: for lack of trustworthiness.

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This is a Severity Level III violation not graduated, and ‘‘cited circumstances by revoking the security officer’s access (Supplement VII). Civil Penalty— from the high school program to support to the facility, an adverse action, and in $55,000 this view.’’ When AmerenUE doing so AmerenUE relied upon biased subsequently became aware of information provided by its contractor, Summary of Licensee’s Response to information suggesting that the who thereby participated in taking this Violation temporary watchman likely knew he action. AmerenUE could have, and The Licensee denied the violation, had not graduated from high school, his should have, exercised more care in asserting that there is no evidence that access was revoked. The Access Control implementing adverse action against an decisions made by AmerenUE’s Access Supervisor’s failure to discover individual who was known to have Control Supervisor were motivated by particular information in her initial raised a concern about compliance with an intent to retaliate against the security investigation does not amount to bad security requirements at Callaway. officer. AmerenUE stated that based on faith. The Access Control Supervisor the information known to the Access had no motive to treat the temporary NRC Conclusion Control Supervisor at the time these watchman more favorably than she The NRC has concluded that this decisions were made, the Access treated the security officer. violation occurred as stated, and that Control Supervisor acted reasonably and AmerenUE has not provided a basis for NRC Evaluation of Licensee’s Response in good faith. The Licensee’s specific withdrawal of the Notice of Violation or to Violation arguments were: the civil penalty. Consequently, the (1) AmerenUE did not knowingly rely AmerenUE’s principal argument is proposed civil penalty in the amount of on a biased investigation and report by that AmerenUE, and the Access Control $55,000 should be imposed. TWC to revoke the security officer’s Supervisor in particular, were not Access Authorization because the motivated by an intent to retaliate [FR Doc. 02–13081 Filed 5–23–02; 8:45 am] Access Control Supervisor had no against the security officer. AmerenUE BILLING CODE 7590–01–P reason to suspect that the TWC then argues that there can be no Investigation was biased. The Access violation of 10 CFR 50.7 on the part of Control Supervisor spoke to the TWC AmerenUE without showing such SECURITIES AND EXCHANGE Project Manager on November 20, 1999, intent. AmerenUE provides many facts COMMISSION to inquire about the security officer’s in support of its arguments. The central termination. The TWC Project Manager issues are whether a violation of 10 CFR Proposed Collection; Comment informed her that TWC discovered 50.7 occurred, and whether AmerenUE Request during the course of an investigation is responsible for that violation. Upon Written Request, Copies Available that the security officer misrepresented AmerenUE has provided no new From: Securities and Exchange herself as a representative of Callaway information regarding whether a Commission, Office of Filings and when the security officer called the high violation of 10 CFR 50.7 occurred, and Information, Services Washington, DC school principal. The Access Control did not address whether its contractor, 20549 Supervisor was informed that the TWC, engaged in discriminatory action. investigation was independent and was The NRC has reviewed the information Extension: conducted by an off-site auditor. The in AmerenUE’s January 22, 2002 Rule 17a–22, SEC File No. 270–202, Access Control Supervisor reasoned that response, as well as the information OMB Control No. 3235–0196 an individual whose employment was TWC provided in response to this Notice is hereby given that pursuant terminated due to her lack of violation in a January 23, 2002 letter, to the Paperwork Reduction Act of 1995 trustworthiness should not maintain her and concludes that a violation of 10 CFR (44 USC 3501 et seq.), the Securities and unescorted access authorization, and 50.7 occurred. As stated in the Notice of Exchange Commission (‘‘Commission’’) therefore the security officer’s Violation, the security officer and the is soliciting comments on the collection unescorted access authorization was training instructor engaged in protected of information summarized below. The revoked. The Access Control Supervisor activity, each was subjected to adverse Commission plans to submit this did not see the TWC report until after action, and the adverse action occurred, existing collection of information to the the security officer’s access was revoked at least in part, because of the protected Office of Management and Budget for and did not have cause to suspect the activity. extension and approval. TWC investigation was biased. AmerenUE’s argument that the NRC sbull Rule 17a–22 Supplemental Accordingly, she could not have must show retaliatory intent on the part Material of Registered Clearing Agencies knowingly relied on a biased of AmerenUE personnel is mistaken. Rule 17a–22 under the Securities investigation report. AmerenUE could Discriminatory intent on the part of its Exchange Act of 1934 (‘‘Exchange not have violated 10 CFR 50.7 unless Access Control Supervisor is not Act’’) 1 requires all registered clearing the preponderance of the evidence necessary for AmerenUE to have agencies to file with the Commission shows that the Access Control violated 10 CFR 50.7. A violation of 10 three copies of all materials they issue Supervisor revoked the security officer’s CFR 50.7 by a licensee’s contractor may or make generally available to their access authorization with the intention be grounds for imposition of a civil participants or other entities with whom of retaliating against the security officer penalty upon the licensee. 10 CFR they have a significant relationship. The for her protected activity. 50.7(c)(2). See Atlantic Research filings with the Commission must be (2) The Access Control supervisor Corporation, CLI–80–7, 11 NRC 413, made within ten days after the materials made a good faith effort to determine 419–424 (1980). The fact that are issued, and when the Commission is whether a temporary watchman AmerenUE delegated a portion of its not the appropriate regulatory agency, knowingly misrepresented his responsibilities to a contractor, i.e., The the clearing agency must file one copy educational qualifications by Wackenhut Corporation (TWC), does of the material with its appropriate interviewing the high school principal not relieve AmerenUE of its regulatory agency. The Commission is on December 2, 1999. The principal responsibility to maintain compliance responsible for overseeing clearing stated his belief that the temporary with NRC requirements at Callaway. watchman likely did not know he had AmerenUE participated in this matter 1 15 U.S.C. 78a et. seq.

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agencies and uses the information filed Executive Director, Office of I. Self-Regulatory Organization’s pursuant to Rule 17a–22 to determine Information Technology, Securities and Statement of the Terms of Substance of whether a clearing agency is Exchange Commission, 450 5th Street, the Proposed Rule Change implementing procedural or policy NW, Washington, DC 20549. The CBOE proposes to amend its rules changes. The information filed aids the Dated: May 16, 2002. Commission in determining whether to allow for $0.50 strike price intervals Margaret H. McFarland, such changes are consistent with the for options based on certain exchange- purposes of Section 17A of the Deputy Secretary. traded funds. The text of the proposed Exchange Act. Also, the Commission [FR Doc. 02–13100 Filed 5–23–02; 8:45 am] rule change follows. Proposed new uses the information to determine BILLING CODE 8010–01–P language is italicized. whether a clearing agency has changed Rule 5.5. Series of Option Contracts its rules without reporting the actual or Open for Trading prospective change to the Commission SECURITIES AND EXCHANGE as required under Section 19(b) of the COMMISSION (a)–(c) No change. Exchange Act. [Release No. 34–45945; File No. SR–CBOE– * * * Interpretations and Policies: The respondents to Rule 17a–22 2002–25] generally are registered clearing .01 The interval between strike 2 prices of series of options on individual agencies. The frequency of filings made Self-Regulatory Organizations; Notice stocks will be: by clearing agencies pursuant to Rule of Filing and Immediate Effectiveness 17a–22 varies, but on average there are of a Proposed Rule Change and (a) $2.50 or greater where the strike approximately 200 filings per year per Amendment No. 1 Thereto by the price is $25.00 or less; less, or where the clearing agency. Because the filings Chicago Board Options Exchange, Inc. stock represents an interest in a consist of materials that have been To Allow for $0.50 Strike Price registered investment company that prepared for widespread distribution, Intervals for Options Based on Certain satisfies the criteria set forth in the additional cost to the clearing Exchange-Traded Funds Interpretation and Policy .06 under Rule agencies associated with submitting 5.3 and where the strike price is $200.00 copies to the Commission is relatively May 16, 2002. or less; small. The Commission staff estimates Pursuant to section 19(b)(1) of the (b) $5.00 or greater where the strike that the cost of compliance with Rule Securities Exchange Act of 1934 price is greater than $25.00, or where 17a–22 to all registered clearing 1 2 (‘‘Act’’) and Rule 19b–4 thereunder, the stock represents an interest in a agencies is approximately $5,220. This notice is hereby given that on May 8, registered investment company that represents one dollar per filing in 2002, the Chicago Board Options satisfies the criteria set forth in postage, or a total of $3,600. The Exchange, Inc. (‘‘CBOE’’ or ‘‘Exchange’’) Interpretation and Policy .06 under Rule remaining $1,620 (or approximately filed with the Securities and Exchange 5.3 and where the strike price is more 31% of the total cost of compliance) is Commission (‘‘Commission’’ or ‘‘SEC’’) than $200,00; the estimated cost of additional the proposed rule change as described printing, envelopes, and other in Items I, II, and III below, which Items (c) $10.00 or greater where the strike administrative expenses. (The estimated have been prepared by the CBOE. The price is greater than $200.00; total cost per response is $1.45 per page Exchange submitted Amendment No. 1 .02–.05 No change. representing $1.00 per page in postage to the proposed rule change on May 15, .06 Notwithstanding Interpretation plus $0.45 for printing, envelopes, and 3 2002. The Exchange filed the proposed and Policy .01 above, the interval other administrative expenses.) rule change pursuant to section between strike prices may be $0.50 or Written comments are invited on: (a) 4 19(b)(3)(A) of the Act, and Rule 19b– greater for options based on IPSs that Whether the proposed collection of 4(f)(6) thereunder,5 which renders the information is necessary for the proper correspond generally to the price and proposal effective upon filing yield performance of 1⁄10th the value of performance of the functions of the Amendment No. 1 with the agency, including whether the the S&P 100 Index, and for options Commission. The Commission is based on a security that represents an information shall have practical utility; publishing this notice to solicit (b) the accuracy of the agency’s interest in a registered investment comments on the proposed rule change, company that corresponds generally to estimates of the burden of the proposed as amended, from interested persons. collection of information; (c) ways to the price and yield performance of 1 enhance the quality, utility, and clarity ⁄100th the value of the Dow Jones 1 15 U.S.C. 78s(b)(1). Industrial Average. of the information to be collected; and 2 17 CFR 240.19b–4. (d) ways to minimize the burden of the 3 In Amendment No. 1, the Exchange represents II. Self-Regulatory Organization’s collection of information on that CBOE has the necessary systems capacity to Statement of the Purpose of, and respondents, including through the use support any additional series of options that may Statutory Basis for, the Proposed Rule of automated collection techniques or be added pursuant to the proposed rule change. The Exchange also attached a letter from the Options Change other forms of information technology. Price Reporting Authority (‘‘OPRA’’), in which Consideration will be given to OPRA represents that OPRA has the capacity to In its filing with the Commission, the comments and suggestions submitted in support any additional series of options that may CBOE included statements concerning writing within 60 days of this be added pursuant to the proposed rule change. See the purpose of, and basis for, the letter from Angelo Evangelou, Senior Attorney, publication. Legal Division, CBOE, to Florence Harmon, Senior proposed rule change and discussed any Please direct your written comments Special Counsel, Division of Market Regulation, comments it received on the proposed to Michael E. Bartell, Associate Commission, dated May 14, 2002 (‘‘Amendment rule change. The text of these statements No. 1’’). may be examined at the places specified 2 Respondents include temporarily registered 4 15 U.S.C. 78s(b)(3)(A). in Item IV below. The CBOE has 5 clearing agencies. Respondents also may include 17 CFR 240.19b–4(f)(6). In its filing, the CBOE prepared summaries, set forth in clearing agencies granted exemptions from the requested that the Commission waive the rule’s registration requirements of Section 17A, requirements of a five-day pre-filing notice and a Sections A, B, and C below, of the most conditioned upon compliance with Rule 17a–22. 30-day operative delay. significant aspects of such statements.

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A. Self-Regulatory Organization’s will permit trading in options based on change operative as of the date of this Statement of the Purpose of, and DIAMONDS  pursuant to strike notice.13 Statutory Basis for, the Proposed Rule intervals designed to promote just and A proposed rule change filed under Change equitable principles of trade, and Rule 19b–4(f)(6) 14 normally requires thereby will provide investors with the 1. Purpose that a self-regulatory organization give ability to invest in options based on an the Commission written notice of its The Exchange proposes to establish additional product. intent to file the proposed rule change, $0.50 strike price intervals for options along with a brief description and text based on DIAMONDS , an exchange- B. Self-Regulatory Organization’s Statement on Burden on Competition of the proposed rule change, at least five traded fund that represents ownership business days prior to the date of filing in a unit investment trust established to The CBOE does not believe that the of the proposed rule change. However, hold a portfolio of stocks replicating the proposed rule change will impose any Rule 19b–4(6)(iii) 15 permits the Dow Jones Industrial Average. burden on competition not necessary or  Commission to designate a shorter time. DIAMONDS currently trade on several appropriate in furtherance of the The CBOE seeks to have the five- national securities exchanges. The purposes of the Act. business-day pre-filing requirement Exchange intends to list options on  C. Self-Regulatory Organization’s waived with respect to the proposed DIAMONDS pursuant to existing rule change.16 The Commission has listing standards set forth in CBOE Rule Statement on Comments on the Proposed Rule Change Received from determined to waive the five-business- 5.3, Interpretation and Policy .06. day pre-filing requirement with respect The Exchange believes that it is Members, Participants, or Others to this proposal. appropriate to amend CBOE Rule 5.5 No written comments were solicited At any time within 60 days of the (Series of Option Contracts Open for or received with respect to the proposed filing of the proposed rule change, the Trading) to provide that options on rule change. DIAMONDS  be set to $0.50 or greater Commission may summarily abrogate 1 such rule change if it appears to the strike price intervals. These ⁄2 point III. Date of Effectiveness of the increments are needed to correspond to Proposed Rule Change and Timing for Commission that such action is CBOE Rule 24.9, Interpretation and Commission Action necessary or appropriate in the public Policy .01(b) which provides that DJX Because the foregoing proposed rule interest, for the protection of investors, index options (index options based on does not (i) significantly affect the or otherwise in furtherance of the 1 purposes of the Act. ⁄100th of the value of the Dow Jones protection of investors or the public Industrial Average) may trade in strike interest; (ii) impose any significant IV. Solicitation of Comments intervals as narrow as $0.50. Because burden on competition; and (iii) become DJX and DIAMONDS  are both based operative for 30 days from the date on Interested persons are invited to on 1⁄100th of the value of the Dow Jones which it was filed, or such shorter time submit written data, views and Industrial Average, the significant as the Commission may designate, if arguments concerning the foregoing, difference between DJX and options on consistent with the protection of including whether the proposed rule DIAMONDS  will be that DJX options investors and the public interest; change, as amended, is consistent with are cash-settled and DIAMONDS  provided that the Exchange has the Act. Persons making written options will be physically-settled. CBOE provided the Commission with written submissions should file six copies is listing options on DIAMONDS  notice of its intent to file the proposed thereof with the Secretary, Securities recognizing that customers may prefer rule change, along with a brief and Exchange Commission, 450 Fifth one settlement type over the other, but description and text of the proposed Street, NW., Washington, DC 20549– providing customers such an alternative rule change, at least five days prior to 0609. Copies of the submission, all would not be meaningful if the two the date of filing of the proposed rule subsequent amendments, all written products could not trade in the same change, or such shorter time as statements with respect to the proposed strike price intervals. Thus, CBOE designated by the Commission, the rule change that are filed with the believes that to effectively compliment proposed rule change has become Commission, and all written CBOE’s DJX index option product and effective pursuant to section 19(b)(3)(A) communications relating to the to help ensure efficient trading of of the Act 9 and Rule 19b–4(f)(6) proposed rule change between the  options on the DIAMONDS , adopting thereunder.10 Commission and any person, other than $0.50 strike price intervals for A proposed rule change filed under those that may be withheld from the  DIAMONDS options is necessary. Rule 19b–4(f)(6) 11 does not become public in accordance with the CBOE notes that the Commission has operative prior to 30 days after the date provisions of 5 U.S.C. 552, will be previously approved a similar rule of filing or such shorter time as the available for inspection and copying in change filing adopting $0.50 strike price Commission may designate if such the Commission’s Public Reference intervals for options on the iShares S&P Room. Copies of such filing will also be 6 action is consistent with the protection 100 Index Fund (ticker symbol OEF). of investors and the public interest. The available for inspection and copying at 2. Statutory Basis CBOE has requested that the the principal office of the CBOE. All submissions should refer to File The Exchange believes that the Commission accelerate the implementation of the proposed rule Number SR–CBOE–2002–25 and should proposed rule change, as amended, is be submitted by June 14, 2002. consistent with section 6(b) of the Act,7 change so that it may take effect prior in general, and furthers the objectives of to the 30 days specified in Rule 19b– 12 13 For purposes of accelerating the 8 4(f)(6)(iii). The Commission has section 6(b)(5), in particular, because it implementation of the proposed rule change only, determined to make the proposed rule the Commission notes that it has considered the 6 See Securities Exchange Act Release No. 41995 proposed rule’s impact on efficiency, competition, (February 15, 2001), 66 FR 11341 (February 23, 9 15 U.S.C. 78s(b)(3)(A). and capital formation. 15 U.S.C. 78c(f). 2001). 10 17 CFR 240.19b–4(f)(6). 14 17 CFR 240.19b–4(f)(6). 7 15 U.S.C. 78f(b). 11 17 CFR 240.19b–4(f)(6). 15 17 CFR 240.19b–4(f)(6)(iii). 8 15 U.S.C. 78f(b)(5). 12 17 CFR 240.19b–4(f)(6)(iii). 16 See supra note 4.

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For the Commission, by the Division of which such orders will be rejected and Nasdaq’s Economic Research Market Regulation, pursuant to delegated returned to their respective order entry Department of execution times in the authority.17 firms.] SuperSoes system. That analysis is Margaret H. McFarland, * * * * * summarized below. Deputy Secretary. First, the analysis indicates [FR Doc. 02–12987 Filed 5–23–02; 8:45 am] II. Self-Regulatory Organization’s approximately 42% of total SuperSoes BILLING CODE 8010–01–P Statement of the Purpose of, and orders are significantly slowed down Statutory Basis for, the Proposed Rule (taking over 1⁄2 second to execute) Change because an ECN that does not accept SECURITIES AND EXCHANGE In its filing with the Commission, automatic execution is alone at the COMMISSION Nasdaq included statements concerning inside.3 In Nasdaq 100 securities, [Release No. 34–45957; File No. SR–NASD– the purpose of and basis for the approximately 47% of SuperSoes orders 2002–23] proposed rule change and discussed any are similarly delayed. The sheer length comments it received on the proposed of these delays is also troublesome, with Self-Regulatory Organizations; Notice rule change. The text of these statements the average execution time of SuperSoes of Filing of Proposed Rule Change and may be examined at the places specified orders in Nasdaq 100 securities when an Amendment No. 1 by National in Item IV below. Nasdaq has prepared ECN is alone at the inside taking over Association of Securities Dealers, Inc. summaries, set forth in Sections A, B, 5 times as long (1.03 seconds) to Relating to Continuous Operation of and C below, of the most significant execute, than when an auto-ex the Nasdaq National Market System aspects of such statements. participant is at the inside and the During Market Hours SuperSoes system operates without A. Self-Regulatory Organization’s restriction (0.19 seconds). May 17, 2002. Statement of the Purpose of, and These delays are also related to just Pursuant to section 19(b)(1) of the Statutory Basis for, the Proposed Rule how often SuperSoes is prevented from Act,1 notice is hereby given that on Change performing at all. In Nasdaq 100 stocks, February 14, 2002, the National In July of 2001, Nasdaq implemented ECNs that do not take automatic Association of Securities Dealers, Inc. SuperSoes, which provides for execution are alone at either the bid or (‘‘NASD’’ or ‘‘Association’’), through its automatic execution against most offer an average 70% of the time (for the subsidiary the Nasdaq Stock Market, market participant quotes in Nasdaq median stock, 75% of the time). This Inc. (‘‘Nasdaq’’) filed with the Securities National Market Securities. While a means that Nasdaq’s SuperSoes system and Exchange Commission (‘‘SEC’’ or great improvement over the order- is not processing normally on either the ‘‘Commission’’) the proposed rule delivery environment prevalent in bid or offer side of market the majority change as described in Items I, II, and Nasdaq before its adoption, the current of the time in one or more of Nasdaq’s III below, which Items have been operation and functionality of most active securities. prepared by Nasdaq. Nasdaq filed SuperSoes can, in a specific instance, Not surprisingly, these delays also Amendment No. 1 on May 17, 2002.2 inappropriately inhibit the smooth have a material impact on the execution The Commission is publishing this functioning of the Nasdaq market. This that a party entering a SuperSoes order notice to solicit comments on the occurs when non-SuperSoes, and thus can expect. Nasdaq’s analysis indicates proposed rule change from interested non-auto-executable, Electronic that a party entering an order into persons. Communications Networks (‘‘ECNs’’) SuperSoes when an ECN is alone at the I. Self-Regulatory Organization’s that link to the market via Nasdaq’s inside has just a 33% chance that its Statement of the Terms of Substance of SelectNet order-delivery system are order will be executed in full. When the Proposed Rule Change alone in posting the best price to buy or SuperSoes has an auto-ex participant at sell a particular security. SuperSoes will the inside, the system continues to The proposed rule change will allow automatically execute only at the best- operate, and the chance of getting an the continued operation of the National displayed bid or offer. If an ECN is alone order executed in full rises dramatically Market Execution System (‘‘NNMS’’ or in displaying either the best price to buy to over 70%. In short, Nasdaq’s analysis ‘‘SuperSoes’’) so as to trade through the or sell a particular security, all shows that the continuous shutting inside quotations of market participants SuperSoes orders entered into the down of Nasdaq’s primary execution that are inaccessible through the system on the opposite side of the facility has dramatic detrimental SuperSoes system. Below is the text of market where the ECN’s best price consequences for the investing public. the proposed rule change. Proposed remains alone are held by the SuperSoes In response, Nasdaq has determined deletions are in brackets. system for up to 90 seconds, or until the to modify the operation of SuperSoes as * * * * * ECN moves its quote, or until a market it relates to the processing of orders 4710. Participant Obligations in NNMS participant accessible via SuperSoes where an ECN is alone at the best price. (a) through (b)(9) also moves to the inside price. During In short, SuperSoes will be modified so the period an ECN remains alone at the as to not automatically shut down when [(10) In the event that there are no best price, the SuperSoes system, in an ECN is alone at the inside. Market NNMS Market Makers at the best bid effect, shuts down. The suspension of participants will be able, consistent (offer) disseminated by Nasdaq, market the SuperSoes system’s operation in this with ongoing best execution obligations, orders to sell (buy) entered into NNMS circumstance prevents other market to continue to send market orders, or will be held in queue until executable, participants from automatically marketable limit orders, to SuperSoes or until 90 seconds has elapsed, after accessing liquidity at and near the inside and significantly degrades market 3 A portion of this delay is also attributable to 17 17 CFR 200.30–3(a)(12). quality and functionality for the processing queues in the SuperSoes system itself. 1 15 U.S.C. 78s(b)(1). overwhelming majority of Nasdaq It is Nasdaq’s view that many of these queues form 2 See Letter from Thomas P. Moran, Associate as the direct result of orders not being allowed to General Counsel, Nasdaq, to Katherine A. England, market participants, including public execute automatically because SuperSoes suspends Assistant Director, Division of Market Regulation, investors. These negative impacts are operation when an ECN that does not take Commission (May 17, 2002). borne out by a recent analysis by automatic execution is alone at the inside.

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for execution. Firms not wishing to publishes its reasons for so finding or notice is hereby given that on May 6, bypass ECNs alone at the inside quote (ii) as to which the NASD consents, the 2002, the National Association of will continue to have the option to Commission will: Securities Dealers, Inc. (‘‘NASD’’ or direct Nasdaq to attempt to access the (A) by order approve such proposed ‘‘Association’’) filed with the Securities ECN’s quote via SelectNet if they so rule change, or and Exchange Commission (‘‘SEC’’ or desire. (B) institute proceedings to determine ‘‘Commission’’) the proposed rule By enhancing SuperSoes to allow it to whether the proposed rule change change as described in Items I, II, and automatically access liquidity on an should be disapproved. III below, which Items have been ongoing basis, Nasdaq market IV. Solicitation of Comments prepared by the NASD. The NASD participants will be given the maximum submitted Amendment No. 1 to the amount of flexibility to protect and Interested persons are invited to proposed rule change on May 16, 2002.3 service their customers. In addition, the submit written data, views, and The Commission is publishing this removal of the potential single point of arguments concerning the foregoing, notice to solicit comments on the failure represented by a single ECN including whether the proposed rule proposed rule change, as amended, from quote at the inside market which is change is consistent with the Act. interested persons. accessible only through a separate, and Persons making written submissions non-automatic, execution linkage should file six copies thereof with the I. Self-Regulatory Organization’s ensures that the main trading system of Secretary, Securities and Exchange Statement of the Terms of Substance of the Nasdaq market continues to operate Commission, 450 Fifth Street, NW, the Proposed Rule Change Washington, DC 20549–0609. Copies of throughout the day without the The NASD is filing with the potential for disruptive, intermittent the submission, all subsequent amendments, all written statements Commission a proposed structure for suspensions that negatively impact both fees to be charged in connection with the price-discovery and trading process with respect to the proposed rule change that are filed with the the NASD’s creation of a corporate bond for the vast bulk of the Nasdaq market trade reporting and transaction community. Commission, and all written communications relating to the dissemination facility. The facility is Based on the above, Nasdaq believes currently referred to as the Trade this proposed rule change is consistent proposed rule change between the Commission and any person, other than Reporting and Compliance Engine or with the provisions of section 15A(b)(6) ‘‘TRACE.’’ TRACE replaces Nasdaq’s 4 those that may be withheld from the of the Act in that the proposal is Fixed Income Pricing System (‘‘FIPS’’). designed to prevent fraudulent and public in accordance with the provisions of 5 U.S.C. 552, will be The proposed rule change is in addition manipulative acts and practices, to to the NASD’s Rule 6200 Series for promote just and equitable principles of available for inspection and copying in 4 the Commission’s Public Reference TRACE. The current text of NASD Rule trade, to foster cooperation and 7010 (k) Fixed Income Pricing System coordination with persons engaged in Room. Copies of such filing will also be available for inspection and copying at (FIPS) will be deleted in its entirety and regulating, clearing, settling, processing replaced by the proposed new TRACE information with respect to, and the principal office of the NASD. All submissions should refer to File No. fees. Below is the text of the proposed facilitating transactions in securities, to rule change. Proposed new language is remove impediments to and perfect the SR–NASD–2002–23 and should be submitted by June 14, 2002. in italics, proposed deletions are in mechanism of a free and open market [brackets]. and a national market system, and, in For the Commission, by the Division of * * * * * general, to protect investors and the Market Regulation, pursuant to delegated public interest. authority.5 Rule 7010. System Services Jill M. Peterson, B. Self-Regulatory Organization’s Assistant Secretary. [(k) Fixed Income Pricing System Statement on Burden on Competition (FIPS)] [FR Doc. 02–13055 Filed 5–23–02; 8:45 am] Nasdaq does not believe that the BILLING CODE 8010–01–P [(1) The following charges shall apply proposed rule change will result in any to the operation of Full Function and burden on competition that is not Limited Function FIPS terminals. necessary or appropriate in furtherance SECURITIES AND EXCHANGE Charges for Full Function and Limited of the purposes of the Act, as amended. COMMISSION Function FIPS terminals will also C. Self-Regulatory Organization’s [Release No. 34–45960; File No. SR–NASD– Statement on Comments on the 2002–63] 3 See letter from Barabara Z. Sweeney, Senior Proposed Rule Change Received From Vice President and Corporate Secretary, NASD Members, Participants, or Others Self-Regulatory Organizations; Notice Regulation, to Katherine A. England, Assistant of Filing of Proposed Rule Change by Director, Division of Market Regulation (‘‘Division’’), dated May 16, 2002. Written comments were neither the National Association of Securities solicited nor received. 4 The Commission approved the Rule 6200 Series Dealers, Inc. Relating to Proposed on January 23, 2001. See SR–NASD–99–65 and III. Date of Effectiveness of the Fees for the Trade Reporting and Amendments No. 1 through 4 thereto, approved in Proposed Rule Change and Timing for Compliance Engine (TRACE) for Securities Exchange Act Release NO. 43873 (January 23, 2001), 66 FR 811 (January 29, 2001) Commission Action Corporate Bonds (‘‘TRACE Approval Order’’). On December 21, 2001, Within 35 days of the date of the NASD filed SR–NASD–2001–91 to establish May 17, 2002. July 1, 2002 as the effective date of the Rule 6200 publication of this notice in the Federal Pursuant to Section 19(b)(1) of the Series (see SR–NASD–2001–91). On January 3, Register or within such longer period (i) Securities Exchange Act of 1934 2002, the Commission issued a notice that the as the Commission may designate up to (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 proposed rule change had become effective on 90 days of such date if it finds such filing. Securities Exchange Act Release No. 45229 (January 3, 2002), 67 FR 1255 (January 9, 2002). On longer period to be appropriate and 5 17 CFR 200.30–3(a)(12). April 3, 2002, the NASD filed SR–NASD–2002–46 1 15 U.S.C. 78s(b)(1). to make certain technical amendments to the new 4 15 U.S.C. 78o–3(b)(6). 2 17 CFR 240.19b–4. Rule 6200 Series.

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include equipment related charges as charge assessed against the member BQDS information includes the bids and detailed in Rule 7020. responsible for reporting the transaction offers of all FIPS participants registered (A) Full Function FIPS terminals: under paragraphs (a)(3) or (b)(3) in each FIPS security, the inside bid/ask $1,000/month for the first terminal thereof.] quotation for each FIPS security, and plus $350/month for each additional [(3) There shall be a $50 monthly hourly summary transaction terminal. charge assessed against members using information on FIPS securities. Full Function FIPS terminals provide the FIPS service desk. Pursuant to Rule (B) Limited BQDS access to the full range of quotation and 6240(a)(2)(B), members that do not have trade reporting capabilities of FIPS access to a FIPS terminal and average The charge to be paid by the through dedicated communication five or fewer trades per day in high subscriber for each interrogation or circuits. yield securities, inclusive of FIPS display device receiving Limited BQDS (B) Limited Function FIPS terminals: $300/month for each terminal plus securities, during the previous calendar information is $5 per month. Limited dial-up communication charges quarter may utilize the FIPS service BQDS information includes the inside assessed based on actual costs incurred. desk to report trades in high yield bonds bid/ask quotation for each FIPS security Limited Function FIPS terminals effected in the over-the-counter market.] and hourly summary transaction provide access to the full range of [(4) Bond Quotation Data Service information of FIPS securities.] quotation and trade reporting (BQDS) Rule 7010(k) Trade Reporting and capabilities of FIPS through a dial-up (A) Full BQDS Compliance Engine (TRACE) 5 service.] [(2) For each transaction in a high- The charge to be paid by the The following charges shall be paid yield security that is reportable to the subscriber for each interrogation or by participants for the use of the Trade Association pursuant to Rule 6240 of display device receiving Full BQDS Reporting and Compliance Engine the FIPS Rules, there shall be a $1 information is $50 per month. Full (‘‘TRACE’’):

System fees Transaction reporting fees Market data fees

Web Browser Access: $85/month for 1 user ID; Trades up to and including $0 to $200,000 BTDS Professional Display—$60/month per $75/month for 2–9 user IDs; $70/month for par value—$0.50/trade; Trades up to and terminal. 2–10+ user IDs. including $201,000 to $999,999 par value— $0.0025 times the number of bonds traded/ trade; Trades of $1,000,000 par value or more—$2.50/trade. CTCI—$25/month/line ...... Cancel/Correct—$3/trade ...... BTDS Internal Usage Authorization—$500/ month per organization. Third Party—$25/month ...... ‘‘As of’’ Trade Late—$3/trade ...... BTDS External Usage Authorization—$1,000/ month per organization. PDN Adminsitrative—$100/month/line ...... Browse & Query—$0.05 after first page ...... BTDS Non-Professional Display—$1/month per terminal. Daily List Fax—$15/month per fax number/ad- dressee.

(1) System Related Fees. There are Association via a TRACE web browser whether the line is or is not dedicated three methods by which a member may shall be as follows: for the first user ID exclusively for TRACE.7 report corporate bond transactions that registered, a charge of $85 per month; (C) Third Party Access—Indirect are reportable to the Association for the next two through nine user IDs Reporting pursuant to the Rule 6200 Series. A registered, a charge of $75 per month, member may choose among the per such additional user ID; and for ten A member may elect to report TRACE following methods to report data to the or more user IDs registered, a charge of data indirectly to the Association via Association: (a) a TRACE web browser $70 per month, per user ID from two to third-party reporting intermediaries, (either over the Internet or a secure ten or more. In addition, a member that such as vendors, service bureaus, private data network (‘‘PDN’’)); (b) a elects to report TRACE data to the clearing firms, or the National Securities Computer-to-Computer Interface Association via a web browser over a Clearing Corporation (‘‘NSCC’’). The (‘‘CTCI’’) (either one dedicated solely to secure PDN rather than over the Internet charge to be paid by a member shall be TRACE or a multi-purpose line); or (c) shall pay an additional administrative $25 per month, per firm. Nothing in this a third-party reporting intermediary. charge of $100 per month, per line.6 Rule shall prevent such third-party Fees will be charged based on the intermediaries from charging additional (B) Computer-to-Computer Interface reporting methodology selected by the fees for their services. Access member. The charge to be paid by a member (2) Transaction Reporting Fees (A) Web Browser Access that elects to report TRACE data to the For each transaction in corporate The charge to be paid by a member Association via a CTCI line shall be $25 bonds that is reportable to the that elects to report TRACE data to the per month, per line, regardless of Association pursuant to the Rule 6200

5 In an unrelated filing with the Commission, the that rule filing. Such filing may require that 6 Charges that may be imposed by third parties, NASD filed notice of proposed rule changes relating subsection (k) referenced herein be renumbered to such as network providers, are not included in these to the separation of Nasdaq from the NASD and the be consistent with the modifications proposed fees. establishment of the NASD Alternative Display therein. See SR–NASD–2991–90 filed on December 7 Charges that may be imposed by third parties, Facility. Such filing proposes to modify certain 7, 2001; see also, SR–NASD–2002–28 filed on NASD rules to effectuate this separation. The Rule such as CTCI line providers, are not included in 7000 Series is proposed to be modified as part of February 20, 2002. these fees.

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Series, the following charges shall be (ii) BTDS Internal Usage (4) Daily List Fax Service assessed against the member Authorization Fee of $500 per month, responsible for reporting the per organization charge for internal Each subscriber for the Association’s transaction: dissemination of real-time TRACE Daily List Fax Service shall be charged transaction data used in one or more of $15 per month, per fax number/ (A) Trade Reporting Fee the following ways: internal operational addressee. A member shall be charged a Trade and processing systems, internal * * * * * Reporting Fee based upon a sliding monitoring and surveillance systems, II. Self-Regulatory Organization’s scale ranging from $0.50 to $2.50 per internal price validation, internal Statement of the Purpose of, and transaction based on the size of the portfolio valuation services, internal Statutory Basis for, the Proposed Rule analytical programs leading to reported transaction. Trades up to and Change including $200,000 par value will be purchase/sale or other trading charged a $0.50 fee per trade; trades decisions, and other related activities.8 In its filing with the Commission, the between $201,000 par value and (iii) BTDS External Usage NASD included statements concerning $999,000 par value will be charged a fee Authorization Fee of $1,000 per month, the purpose of and basis for the of $0.0025 multiplied by the number of per organization charge for proposed rule change and discussed any bonds traded ; and trades of $1,000,000 dissemination of real-time TRACE comments it received on the proposed par value or more will be charged a fee transaction data used in one or more of rule change. The text of these statements of $2.50 per trade. the following ways: repackaging of may be examined at the places specified market data for delivery and in Item IV below. NASD has prepared (B) Cancel or Correct Trade Fee dissemination outside the organization, summaries, set forth in Sections A, B, A member shall be charged a Cancel such as indices or other derivative and C below, of the most significant 9 or Correct Trade Fee of $3.00 per products. aspects of such statements. canceled or corrected transaction. To (A) Non-Professional Fees A. Self-Regulatory Organization’s provide firms with time to adjust to the The charge to be paid by a non- Statement of the Purpose of, and new reporting system, the Cancel or professional for each terminal receiving Statutory Basis for, the Proposed Rule Correct Trade Fee will not be charged all or any portion of real-time TRACE Change until the later of October 1, 2002 or 90 transaction data disseminated through days after the effective date of TRACE. 1. Purpose TRACE shall be $1.00 per month, per (C) ‘‘As of’’ Trade Late Fee terminal. The NASD proposed, and the A member shall be charged an ‘‘As (B) Non-Professional Defined Commission approved, in a separate filing with the Commission, the of’’ Trade Late Fee of $3.00 per A ‘‘non-professional’’ is a natural transaction for those transactions that adoption of the new Rule 6200 Series person who is neither: relating to the creation of TRACE and are not timely reported ‘‘As of’’ as (i) registered nor qualified in any the elimination of Nasdaq’s FIPS high required by these rules. To provide firms capacity with the Commission, the yield reporting system.10 In this filing, with time to adjust to the new reporting Commodity Futures Trading the NASD is proposing to establish fees system, the ‘‘As of’’ Trade Late Fee will Commission, any state securities for participants and users of the TRACE not be charged until the later of October agency, any securities exchange or facility and to rescind the FIPS fees. 1, 2002 or 90 days after the effective association, or any commodities or date of TRACE. futures contract market or association; Background (D) Browse and Query Fee or (ii) engaged as an ‘‘investment In 1998, the SEC, in recognition of the Members may review their own adviser’’ as that term is defined in relative lack of transparency in the previously reported transaction data Section 201(11) of the Investment corporate debt market, called upon the through a Browse and Query function. A Advisers Act of 1940 (whether or not NASD to do the following: (1) Adopt member shall be charged $0.05 for each registered or qualified under that Act); rules requiring NASD members to report returned page of the query beyond the (iii) employed by a bank, insurance all transactions in corporate bonds to first page. company or other organization exempt the NASD and to develop systems to from registration under federal or state receive and distribute transaction prices (3) Market Data Fees securities laws to perform functions that on an immediate basis; (2) create a Professionals and non-professionals would require registration or database of transactions in corporate may subscribe to receive real-time qualification if such functions were bonds to enable regulators to take a TRACE data disseminated by the performed for an organization not so proactive role in supervising the Association in one or more of the exempt; nor corporate debt market; and (3) create a following ways for the charges specified. (iv) engaged in, or has the intention surveillance program, in conjunction Members, vendors and other to engage in, any redistribution of all or with the development of a database to redistributors shall be required to any portion of the information better detect fraud and foster investor execute appropriate agreements with disseminated through TRACE. confidence in the fairness of the the Association. corporate bond market. (A) Professional Fees. Professionals 8 Under this service, real-time TRACE transaction Since the SEC mandate, the NASD has data may not be used in any interrogation display may subscribe for the following: devices, any systems that permit end users to developed TRACE, which is a reporting (i) Bond Trade Dissemination Service determine individual transaction pricing in real- facility developed by the NASD that, (‘‘BTDS’’) Professional Display Fee of time, or disseminated to any external source. among other things, accommodates $60 per month, per terminal charge for 9 Under this service, real-time TRACE transaction reporting and dissemination of data may not be used in any interrogation display transaction reports in TRACE-eligible each interrogation or display device devices or any systems that permit end users to receiving real-time TRACE transaction determine individual transaction pricing in real- data. time. 10 See supra note 4.

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securities.11 The NASD represents that, use the TRACE system based on the NASD represents that the fees are also after extensive consultation with method the member selects to input designed to fund the regulatory industry professionals, it filed SR– transaction information to the NASD. activities necessary to survey the NASD–99–65 12, and amendments Under the proposed rules, members will market. In addition, the NASD believes thereto to implement the TRACE have three means by which to input the proposed fees are non- system. transaction information directly to the discriminatory because members may Participation in TRACE is mandatory NASD: (1) A web browser through the select the technology link that best suits for all NASD members that transact Internet, which will be useful primarily their particular needs. Further, the business in eligible corporate debt for low-volume firms; (2) a web browser NASD states that the proposed fees are securities. Market participants have using a PDN; or (3) a CTCI, which the consistent with similar fees that are specified obligations for the use of the Association anticipates will be used being charged by other transaction TRACE system when entering, or primarily by high volume firms. reporting facilities. correcting trade details on TRACE. Members may also choose to report Transaction Reporting Fees. Members Under proposed rule 6230(a), SR– transactions indirectly to the NASD will be charged fees to file transaction NASD–2002–46, participants are through third parties, such as vendors, reports and cancel or correct transaction obligated to report transaction service bureaus, clearing firms, or the reports. The NASD proposes to charge a information within one hour and fifteen NSCC, which will in turn report to the trade reporting fee using a sliding scale, minutes after trade execution. The NASD through one of the approved based upon the size of the transaction participant may use, among other methods described above. reported, in an effort to distribute the means, a web browser (either over the Members may report transaction fees more equitably between retail Internet or a private data network information manually through a web oriented firms and institutionally (‘‘PDN’’)), Computer-to-Computer browser using their own Internet oriented firms. A member shall be Interface (‘‘CTCI’’), or a third-party provider.14 Members using a web charged a Trade Reporting Fee on a intermediary.13 browser will be charged a monthly sliding scale ranging from $0.50 to $2.50 The NASD represents that the access fee as follows: for the first user per trade based on the size of the purpose of the proposed rule change is ID registered, a charge of $85 per month; reported transaction. For trades up to to establish a TRACE fee structure. The for the next two through nine user IDs and including $200,000 par value, NASD represents that developmental registered, a charge of $75 per month, members will be charged a fee of $0.50 costs of TRACE, to date, are per such additional user ID; and for ten per trade; for trades between $201,000 approximately $7.2 million. In addition, or more user IDs registered, a charge of par value and $999,000 par value, the NASD represents that total operating $70 per month, per user ID from two to members will be charged a fee of costs for the TRACE system are ten or more. Members reporting through $0.0025 multiplied by the number of estimated to be approximately $6 a web browser may elect to report bonds traded; and for trades of million annually. The NASD represents transaction information through a PDN $1,000,000 par value or more, members that the proposed fees are intended to that is owned and operated by Nasdaq’s will be charged a fee of $2.50 per trade. help the NASD recover the development designated network provider, which is The NASD proposes to charge a costs of the new system, fund ongoing currently WorldCom, Inc. Members cancel or correct trade fee of $3.00 per operational costs, and fund the choosing to report transaction trade. The NASD also proposes to regulatory activities necessary for information directly to the NASD using charge an ‘‘As of’’ trade late fee of $3.00 surveillance of the market, all with a a PDN will be charged a $100 per line per trade. Under proposed rule view towards making TRACE administration fee per month by the 6230(a)(2), SR–NASD–2002–46, a financially self-sustaining. NASD. Members should be aware that transaction that is executed after the The proposed fees are divided into this fee does not include fees that will close of the market must be reported three general categories: (1) System fees be charged by Nasdaq for services within the first 1 hour and 15 minutes paid by member firms based on the provided by its designated network after the open of the market on the method chosen by the member to report provider that will be billed directly by following business day to be reported on corporate bond transactions to the 15 Nasdaq. time ‘‘As of.’’ A member shall be NASD (members will have several Members also may report transaction charged an ‘‘As of’’ trade late fee of options on how to report trades and the data through the CTCI operated by $3.00 per transaction for those fees will vary accordingly); (2) Nasdaq for most of its transaction transactions reported beyond such time transaction reporting fees paid by reporting facilities. Nasdaq currently frame. To provide firms time to adjust members to file trade reports and cancel leases dedicated lines from WorldCom, to the new reporting system, the cancel or correct trade reports; and (3) market Inc. and provides direct connection or correct trade fee and ‘‘As of’’ trade data fees paid by members and non- from a member firm to the NASD. The late fee will not be charged until the members that use or distribute the data NASD monthly charge for reporting later of October 1, 2002 or 90 days after collected through the TRACE system through a CTCI is $25 per month, per the effective date of TRACE. In addition, and disseminated by the NASD. line, whether or not such line is used NASD proposes a browse and query fee System Fees. The NASD states that exclusively for TRACE, and does not of $0.05 for each returned page of query TRACE offers participants multiple include Nasdaq charges for its beyond the first page. This feature will options to comply with the transaction allow members to review their own designated network provider. reporting requirements. The NASD The NASD believes the fees set forth previously reported data. In order to standardize corporate bond proposes to charge fees to members who above are reasonably related to the costs reporting obligations and minimize of developing the new facility and to 11 The term ‘‘TRACE-eligible security’’ is defined industry technology burdens, NASD has in Rule 6210(a) of the TRACE rules. meeting the estimated operating 12 expenses of the TRACE system. The See Securities Exchange Act Release No. 43616; 15 As noted previously, the NASD has proposed File No. SR–NASD–99–65. generally to amend the reporting period from 1 hour 13 See SR–NASD–2002–46. In such filing, the 14 The cost of the Internet service is not included to 1 hour and 15 minutes, and this period would NASD has proposed to increase the reporting time in NASD’s fee. A member must obtain Internet apply to transctions executed after the close of the from 1 hour to 1 hour and 15 minutes. access independently. market and reported the next morning.

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proposed (as part of the TRACE filing derivative products.17 Non- staff presented the proposed TRACE with the Commission) the elimination of professionals that subscribe to receive fees to the BTRC for additional industry the separate FIPS system and its related real-time TRACE transaction data will input, and modified certain aspects of rules and costs. The TRACE trade be charged $1.00 per month, per the initial fee proposal in response to reporting fee will replace the flat fee of terminal. In addition, the NASD concerns raised by the BTRC. The $1.00 per trade currently charged to proposes a fee of $15.00 per month, per NASD represents that, with such report corporate bonds through FIPS. subscriber for the daily list fax service modifications, the BTRC voted to The NASD believes the proposed that will contain all of the daily approve the proposed TRACE fees, TRACE trade reporting fee structure, additions, deletions, modifications to subject to a commitment by the NASD which replaces the FIPS flat fee the list of TRACE-eligible securities. staff to reassess the proposed TRACE structure with a sliding scale, is The NASD believes that the proposed fees after TRACE is effective.18 Such reasonable and more equitably market data fees are reasonable. The reassessment may result in certain fees distributes the fees between retail- NASD represents that the various fee being reduced or certain new fees being oriented firms and institutional-oriented levels of proposed market data fees are assessed based on the actual usage of firms. The NASD represents that the intended to provide market participants the new system. The NASD represents fees are designed to help the NASD with the flexibility to select the usage that the BTRC recommended that the recover its development costs, estimated level that best meets their needs. In NASD staff review the TRACE fees operating costs, and the costs of related determining the proposed market data based on actual TRACE data collected regulatory activities. In addition, the fees, the NASD represents that its staff within the first six months of the cancel or correct trade fee and the ‘‘As reviewed comparable industry fees for system’s operation and adjust the fees if of’’ trade late fee are proposed to market data. The NASD states that the actual revenues are substantially greater encourage the correct reporting of proposed market data fees are designed than projected.19 transaction data, as well as to cover the to allow the NASD to recover its The NASD represents that, as part of additional costs incurred by the NASD developmental and operational costs of the initiative by the Commission to to correct the historical record and the TRACE system and the costs of create price transparency in the notify members and the vendor related regulatory activities, while still corporate bond market, the NASD has community. The NASD notes these fees allowing vendors to resell the data at worked diligently to develop the TRACE are consistent with those charged by competitive prices. system. Overall, the NASD believes that other self-regulatory organizations for Market participants and others who the proposed fees are necessary to reporting requirements. wish to receive real-time TRACE data achieve a practical, market-driven Market Data Fees. The NASD directly from the NASD will be required system for processing and disseminating represents that it is committed to to enter into appropriate agreements reliable and uniform corporate bond delivering real-time market data from with the NASD. For example, a vendor data. The NASD believes that the the TRACE system to market or broker/dealer firm that wishes to TRACE system will allow the NASD to participants in the broadest and most distribute TRACE real-time data take a proactive role in supervising the efficient manner possible. NASD externally will be required to enter into corporate bond market and promote proposes to charge market professionals a vendor agreement, which among other investor confidence in the fairness of who subscribe to receive real-time things will standardize display facilities the corporate bond market generally. market data as follows: (i) BTDS and require the vendor to collect Based on the above, the NASD Professional Display Fee of $60 per specified dissemination fees from its believes the proposed rule change is month, per terminal charge for each end users for remittance to the NASD. consistent with the provisions of interrogation or display device receiving Vendors or broker/dealer firms that Section 15A(b)(5) 20 of the Act in that real-time TRACE transaction data; (ii) wish to receive real-time TRACE data the proposal provides for the equitable BTDS Internal Usage Authorization Fee directly from the NASD and allocation of reasonable dues, fees, and of $500 per month, per organization subsequently disseminate real-time other charges among members and other charge for internal dissemination of TRACE data internally will also be persons using any facility or system real-time TRACE transaction data used required to execute agreements with the which the association operates or in one or more of the following ways: NASD, which among other things, will controls. internal operational and processing require firms to represent that the systems, internal monitoring and TRACE real-time data will not be 2. Statutory Basis surveillance systems, internal price disseminated externally. The NASD believes that the proposed validation, internal portfolio valuation In determining the proposed fees the rule change is consistent with the services, internal analytical programs NASD represents that its staff reviewed leading to purchase/sale or other trading the existing FIPS fees, Nasdaq fees, and 18 The NASD represents that the BTRC did not decisions, and other related activities; 16 other comparable industry fees. The vote on or approve the Internal Usage Authorization (iii) BTDS External Usage Authorization NASD states that its staff also consulted Fee and the External Usage Authorization Fee Fee of $1,000 per month, per with members of the industry. In because the committee did not have sufficient time prior to this filing to appropriately consider these organization charge for dissemination of addition, the NASD established the fees. real-time TRACE transaction data used Bond Transaction Reporting Committee 19 Generally, the staff believes that a reassessment in one or more of the following ways: (‘‘BTRC’’) that has ten members, one- of the proposed fee structure would not be valid repackaging of market data for delivery half of whom are recommended by the unless it were based on at least 6 months of NASD, and the other half of whom are historical TRACE data (or full TRACE operatiosn and dissemination outside the and the related revenue stream and costs). However, organization, such as indices or other recommended by The Bond Market with respect to certain fees, the Association may Association. The NASD states that its require additional historical data, or, conversely, 16 Under this service, real-time TRACE may be able to reassess fees based on data collected transaction data may not be used in any 17 Under this service, real-time TRACE over a shorter period. In addition, based on the data interrogation display devices, any systems that transaction data may not be used in any collected, the NASD may assess certain internal permit end users to determine individual interrogation display devices or any systems that dissemination fees, including index fees, transaction pricing in real-time, or disseminated to permit end users to determine individual administration fees, or distributor fees. any external source. transaction pricing in real-time. 20 15 U.S.C. 78o–3(b)(5).

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provisions of Section 15A(b)(6) 21 of the C. Self-Regulatory Organization’s SECURITIES AND EXCHANGE Act, which requires, among other Statement on Comments on the COMMISSION things, that the Association’s rules must Proposed Rule Change Received From be designed to prevent fraudulent and Members, Participants or Others [Release No. 34–45965; File No. SR–NASD– 2002–56] manipulative acts and practices, to Written comments were neither promote just and equitable principles of solicited nor received. Self-Regulatory Organizations; Notice trade, and, in general, to protect of Filing of Proposed Rule Change and investors and the public interest. Based III. Date of Effectiveness of the Amendment No. 1 Thereto by the Proposed Rule Change and Timing for on a mandate by the SEC, the 24 National Association of Securities Association has developed a corporate Commission Action Dealers, Inc. Establishing a Uniform bond reporting facility to create Within 35 days of the date of Process for Opening Daily Trading in transparency in the debt market and publication of this notice in the Federal Nasdaq’s Upcoming SuperMontage allow for surveillance to better detect Register or within such longer period (i) System fraud and foster investor confidence in as the Commission may designate up to May 20, 2002. the fairness of the corporate bond 90 days of such date if it finds such Pursuant to Section 19(b)(1) of the market. In addition, the NASD believes longer period to be appropriate and publishes its reasons for so finding or Securities Exchange Act of 1934 that the proposed rule is consistent with 1 2 22 (ii) as to which the Exchange consents, (‘‘Act’’) and Rule 19b–4 thereunder, Section 15A(b)(5) of the Act which notice is hereby given that on April 22, requires that a national securities the Commission will: (A) By order approve such proposed 2002, the National Association of association have rules that provide for Securities Dealers, Inc. (‘‘NASD’’ or the equitable allocation of reasonable rule change, as amended, or (B) Institute proceedings to determine ‘‘Association’’), through its subsidiary, dues, fees, and other charges among its whether the proposed rule change, as the Nasdaq Stock Market, Inc. members and issuers and other persons amended, should be disapproved. (‘‘Nasdaq’’), filed with the Securities using any facility or system which the and Exchange Commission (‘‘SEC’’ or association operates or controls.23 IV. Solicitation of Comments ‘‘Commission’’) the proposed rule B. Self-Regulatory Organization’s Interested persons are invited to change as described in Items I, II, and III below, which Items have been Statement on Burden on Competition submit written data, views, and arguments concerning the foregoing, prepared by Nasdaq. On May 17, 2002, The NASD does not believe that the including whether the proposed rule Nasdaq filed Amendment No. 1 to the proposed rule change will result in any change, as amended, is consistent with proposed rule change.3 The Commission burden on competition that is not the Act. Persons making written is publishing this notice to solicit necessary or appropriate in furtherance submissions should file six copies comments on the proposed rule change, of the purposes of the Act, as amended. thereof with the Secretary, Securities as amended, from interested persons. Specifically, the NASD believes that the and Exchange Commission, 450 Fifth I. Self-Regulatory Organization’s proposal allows for competition in the Street, NW, Washington, DC 20549– Statement of the Terms of Substance of collection of trade reports, and limits 0609. Copies of the submission, all the Proposed Rule Change subsequent amendments, all written the NASD’s role to: (1) Collecting trade The NASD, through Nasdaq, proposes reports directly only from members that statements with respect to the proposed rule change that are filed with the to establish a uniform process for choose to report directly to the NASD; opening daily trading in Nasdaq’s future (2) consolidating trade reports for Commission, and all written communications relating to the Order Display and Collector Facility regulatory purposes; and (3) proposed rule change between the (‘‘SuperMontage’’). disseminating the consolidated data to Commission and any person, other than The text of the proposed rule change, broker-dealers and those interested in those that may be withheld from the as amended, is available at the Office of reselling the data but not competing in public in accordance with the the Secretary, Nasdaq and at the the market for resale of these data. The provisions of 5 U.S.C. 552, will be Commission. NASD notes that the proposed fees available for inspection and copying in II. Self-Regulatory Organization’s which the NASD is seeking to impose the Commission’s Public Reference Statement of the Purpose of, and for performing these functions are Room. Copies of such filing will also be Statutory Basis for, the Proposed Rule subject to Commission review and available for inspection and copying at Change approval under the standards set forth the principal office of the NASD. All for these purposes under Sections 11A submissions should refer to File No. In its filing with the Commission, and 15A of the Exchange Act. SR–NASD–2002–63 and should be Nasdaq included statements concerning submitted by June 14, 2002. the purpose of, and basis for, the proposed rule change and discussed any For the Commission, by the Division of comments it received on the proposed Market Regulation, pursuant to delegated rule change. The text of these statements 21 15 U.S.C. 78o–3(b)(6). authority.25 may be examined at the places specified 22 15 U.S.C. 78o–3(b)(5). Jill M. Peterson, 23 in Item IV below. Nasdaq has prepared The NASD represents that it has generally Assistant Secretary. submitted proposed rule changes relating to summaries, set forth in Sections A, B, member dues, fees and charges pursuant to Rule [FR Doc. 02–13056 Filed 5–23–02; 8:45 am] and C below, of the most significant 19b–4(f)(2) of the Act and Section 19(b)(3)(A) BILLING CODE 8010–01–P aspects of such statements. thereunder which would make such a proposed rule change effective immediately upon filing with 24 The NASD proposes to make the proposed rule 1 15 U.S.C. 78s(b)(1). the Commission. However, because the TRACE change effective on the same date that the NASD 2 17 CFR 240.19b–4. system is new, the NASD is recommending that the Rule 6200 Series relating to TRACE is made 3 This notice, representing Amendment No 1, Commission solicit comments on the proposed rule effective and FIPS is eliminated. replaces the original Rule 19b–4 filing in its change. 25 17 CFR 200.30–3(a)(12). entirety.

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A. Self-Regulatory Organization’s back to the entering firm if non- that if a market maker or ECN receives Statement of the Purpose of, and marketable. an order and its customer has indicated Statutory Basis for, the Proposed Rule that it does not wish the order to be b. SuperMontage Pre-Open Clearing of Change executed prior to 9:30 a.m., the market Locking and Crossing Quotes and participant can enter the order into 1. Purpose Orders SuperMontage prior to the open but As part of its ongoing preparation for Currently, SuperMontage’s opening enter it as either a market order or as an the launch of SuperMontage, Nasdaq is process resolves locked and crossed IOC limit order. These orders would not engaging in a continuing review of the markets by pairing off the oldest in time drive a quote, would not participate in system’s functionality and rules with a sell quote/order with the oldest in time the pre-market lock/cross clearing view to constant improvement. As a buy quote/order, and then executing the process, and would be held in queue result of this review, and in consultation buying/selling interest at the price of the until 9:30 a.m., at which time they will with industry professionals, Nasdaq has oldest quote/order. Under approved be executed (or canceled if not determined to alter the method SuperMontage rules, this process begins marketable). originally approved for opening daily at 9:30 a.m. Eastern Time, and is trading in SuperMontage. Through a repeated until an unlocked and c. Modifications to ‘‘Trade-or-Move’’ combination of rules and system uncrossed inside market in Nasdaq is Rule Timeframes processing, Nasdaq’s proposed new generated. Nasdaq proposes to amend its Trade- opening process proposes to cure, and Nasdaq proposes to change and or-Move Rule to reflect that the system thereafter prevent, locked and crossed streamline the above process as follows. will begin the unlocking/uncrossing market conditions immediately prior to At 9:29:30 a.m. Eastern Time, the process at 9:29:30 a.m., thus market the 9:30 a.m. market open, while system will begin an automated process participants would be required to send allowing the continued execution of to clear any locked or crossed markets Trade-or-Move Directed Orders 7 pre-market priced orders during that that then exists, using a new matching between 9:20 a.m. and 9:29:29 a.m. (as same time period. and pricing formula. First, the system opposed to 9:29:59 a.m.). Under the Specifically, Nasdaq proposes to: will pair off the most aggressively proposal the Trade-or-Move will operate (1) Clarify that the system will accept priced buy quote/order against the most as follows. Market participants will market orders prior to 9:30 a.m. Eastern aggressively priced sell quote/orders. have an obligation to send Trade-or- Time; Once this ‘‘best-priced pair’’ is Move Directed Orders beginning at (2) Modify the opening process by determined, the system will execute the 9:20:00 a.m. to all quotes they would providing for the automatic clearing of two identified orders at the price of the lock/cross (except for SIZE) using a locked/crossed quotes beginning at newer order until the older order is fully SuperMontage Directed Order. 9:29:30 a.m. Eastern Time, and by satisfied. Nasdaq represents that, in Currently, a market participant will be matching off of locked/crossed quotes essence, price improvement accrues to required to send a Trade-or-Move between the most aggressive orders, at the older order. If the displayed size Directed Order to the party it would the price of the newest of those orders; becomes exhausted at that price level, lock/cross contemporaneous to entering and SuperMontage will continue to execute an Attributable quote/order or Non- (3) Amend its Trade-or-Move Rule to against available reserve size at that Attributable quote/order into SIZE.8 conform to the changes in the opening price level. This process will be Thus, under the proposal if a market process. repeated until an unlocked and participant would actively lock or cross uncrossed market results. Non- the market by posting an Attributable a. Expansion of Order Entry During Pre- Attributable Orders that are displayed quote/order or Non-Attributable quote/ Market Hours under SIZE will also participate in this order in SIZE during 9:20 a.m. and Currently, the SuperMontage system process and will be subject to execution rules do not explicitly permit the entry logic described above. SuperMontage, the Nasdaq system will send the Once the lock/cross is cleared, any market participant a warning message. If the market of Non-Directed market orders prior to participant chooses to override the warning 9:30 a.m. Eastern Time. Under the additional locking or crossing quotes/ orders entered between 9:29:30 a.m. and message, the quote will participate in the approved SuperMontage rules, market unlocking/uncrossing process described above. This participants may enter Non-Directed 9:30:00 a.m. will be turned into an order is, a locking/crossing quote entered between 9:20 and will be executed against the quote/ a.m. and 9:29:30 a.m. will be turned into an order limit orders prior to the market open, and become executable at 9:29:30 a.m. A locking/ subject to certain qualifiers.4 Nasdaq order in Nasdaq that it would lock/ cross. The execution will occur at the crossing quote entered at or after 9:29:30 a.m., but proposes to clarify that all market before market close, will be turned into an order participants in SuperMontage may enter price of the quote/order that would be that will be subject to immediate execution. Quotes locked/crossed consistent with the entered at or after market close will receive the both limit orders and market orders warning message but will not be subject to prior to 9:30 a.m. Market orders and locking/crossing process applicable during market hours.5 execution until 9:29:30 a.m. the following market priced orders designated as IOC, will be Non-Attributable day. held in queue until 9:30 a.m., at which Orders that are displayed under SIZE 7 Nasdaq proposes to change the term ‘‘Trade-or- time they will be executed or returned will also participate in this process and Move Message’’ to ‘‘Trade-or-Move Directed Order.’’ will be subject to execution logic See proposed NASD Rule 4613(e)(1)(C). described above. 8 Under another proposal pending before the 4 Order-entry firms may enter Non-Directed limit Commission, ECNs would be required to send a (priced) orders before 9:30 a.m. Eastern Time but Since these trades will be executed Trade-or-Move Message before entering a locking or these orders must be designated as Immediate or prior to the 9:30 a.m. market open, these crossing quotation and market makers would be Cancel (‘‘IOC’’). Quoting market participants (e.g., trades will be designated as ‘‘.T’’ to required to send a Trade-or-Move Message registered market makers and ECNs in a security) reflect that they were executed outside immediately after entering a locking or crossing may enter limit orders, but are not required to 6 quote. See Securities Exchange Act Release No. designate them exclusively as IOC orders. of normal market hours. Nasdaq notes 45508 (March 5, 2002), 67 FR 10956 (March 11, Accordingly, limit orders from quoting market 2002) (Notice of Amendment Nos. 2 and 3 for File participants that are not IOC are displayed in the 5 See NASD Rule 4710(b)(3). No. SR–NASD–00–76). This proposal would not Nasdaq system both during market hours and the 6 If at any time a market participant enters a quote alter that aspect of the Trade-or-Move rule, if pre-market period. that would lock/cross the market in the approved.

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9:29:30 a.m., that market participant C. Self-Regulatory Organization’s For the Commission, by the Division of will be required to send a Trade-or- Statement on Comments on the Market Regulation, pursuant to delegated 13 Move Directed Order to the party it Proposed Rule Change Received from authority. would lock or cross. However, if at or Members, Participants or Others Margaret H. McFarland, after 9:20 a.m. there is an order being Deputy Secretary. displayed in SIZE, a market participant Nasdaq neither solicited nor received [FR Doc. 02–13101 Filed 5–23–02; 8:45 am] will not be obligated to send a Trade-or- written comments with respect to the BILLING CODE 8010–01–P Move Directed Order to SIZE if they proposed rule change. would actively lock/cross SIZE because III. Date of Effectiveness of the the system currently cannot route a Proposed Rule Change and Timing for SMALL BUSINESS ADMINISTRATION Trade-or-Move Directed Order to the Commission Action market participant representing the Reporting and Recordkeeping Non-Attributed Order behind SIZE.9 As Within 35 days of the date of Requirements Under OMB Review noted above, Non-Attributable Orders publication of this notice in the Federal that are represented under SIZE will Register or within such longer period (i) AGENCY: Small Business Administration. participate in the lock/cross clearing as the Commission may designate up to ACTION: 90 days of such date if it finds such Notice of Reporting process that commences at 9:29:30 a.m., Requirements Submitted for OMB longer period to be appropriate and and thus will be subject to execution Review. prior to the market’s open. publishes its reasons for so finding or (ii) as to which the self-regulatory Accordingly, Nasdaq believes that its SUMMARY: Under the provisions of the organization consents, the Commission proposed process will significantly Paperwork Reduction Act (44 U.S.C. will: improve the Nasdaq market opening by Chapter 35), agencies are required to ensuring that quotes in Nasdaq A. By order approve such proposed submit proposed reporting and securities are not locked or crossed at rule change, or recordkeeping requirements to OMB for the start of normal trading. In addition, B. Institute proceedings to determine review and approval, and to publish a Nasdaq believes that its proposed whether the proposed rule change notice in the Federal Register notifying approach of basing pre-market should be disapproved.12 the public that the agency has made executions on the prices of individual such a submission. IV. Solicitation of Comments quotes/orders provides maximum DATES: Submit comments on or before flexibility for market participants to Interested persons are invited to June 24, 2002. If you intend to comment price and potentially execute their own submit written data, views, and but cannot prepare comments promptly, trading interest, while still maintaining arguments concerning the foregoing, please advise the OMB Reviewer and an orderly market going into the open. including whether the proposed rule the Agency Clearance Officer before the deadline. 2. Statutory Basis change, as amended, is consistent with the Act. Persons making written Copies: Request for clearance (OMB Nasdaq believes that the proposed submissions should file six copies 83–1), supporting statement, and other rule change, as amended, is consistent thereof with the Secretary, Securities documents submitted to OMB for with the provisions of Section 15A of and Exchange Commission, 450 Fifth review may be obtained from the the Act,10 in general and with Section Street, NW., Washington, DC 20549– Agency Clearance Officer. 15A(b)(6) of the Act,11 in particular, in 0609. Copies of the submission, all ADDRESSES: Address all comments that the proposal is designed to promote subsequent amendments, all written concerning this notice to: Agency just and equitable principles of trade, statements with respect to the proposed Clearance Officer, Jacqueline White, foster cooperation and coordination rule change that are filed with the Small Business Administration, 409 3rd with persons engaged in processing Commission, and all written Street, SW., 5th Floor, Washington, DC information with respect to and communications relating to the 20416; and OMB Reviewer, Office of facilitating transactions in securities, as proposed rule change between the Information and Regulatory Affairs, well as removing impediments to and Commission and any person, other than Office of Management and Budget, New perfect the mechanism of a free and those that may be withheld from the Executive Office Building, Washington, open market, and, in general, to protect public in accordance with the DC 20503. investors and the public interest. provisions of 5 U.S.C. 552, will be FOR FURTHER INFORMATION CONTACT: Jacqueline White, Agency Clearance B. Self-Regulatory Organization’s available for inspection and copying in Officer, (202) 205–7044. Statement on Burden on Competition the Commission’s Public Reference Room. Copies of such filing will also be SUPPLEMENTARY INFORMATION: available for inspection and copying at Nasdaq does not believe that the Title: Economic Impact Survey of SBA the principal office of the NASD. All proposed rule change will result in any Technical Assistance Clients. burden on competition that is not submissions should refer to File No. No: 2214. necessary or appropriate in furtherance SR–NASD–2002–56 and should be of the purposes of the Act. submitted by June 14, 2002. Frequency: On Occasion. Description of Respondents: Small 9 The Commission notes that Nasdaq is Business Client (small business owners developing the capability to send a Trade-or-Move & employees, prospective entrepreneurs Directed Order to SIZE and would have to submit 12 Nasdaq has requested that the Commission find and other students of enterprise). a proposed rule change to the Commission to good cause pursuant to Section 19(b)(2) of the Act implement this as a SuperMontage feature. to approve the proposed rule change prior to the Responses: 17,000. 10 15 U.S.C. 78o–3. 30th day after publication in the Federal Register. 11 15 U.S.C. 78o–3(b)(6). See Amendment No. 1, supra note 3. 13 17 CFR 200.30–3(a)(12).

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Annual Burden: 2,226. Dated: May 16, 2002. Form DS–2019, brochures and supplies Herbert L. Mitchell, to administer their Program. Jacqueline White, Associate Administrator for Disaster Form Number: Forms DS–3036 and Chief, Administrative Information Branch. Assistance. DS–3037. [FR Doc. 02–13086 Filed 5–23–02; 8:45 am] [FR Doc. 02–13087 Filed 5–23–02; 8:45 am] Respondents: U.S. government, and BILLING CODE 8025–01–P BILLING CODE 8025–01–P public and private organizations wishing to become designated sponsors SMALL BUSINESS ADMINISTRATION and Department of State designated DEPARTMENT OF STATE sponsors. [Declaration of Disaster #3414] Estimated Number of Respondents: [Public Notice 4025] State of New York DS–3036—150; DS–3037—3,000. Bureau of Educational and Cultural Average Hours per Response: DS– As a result of the President’s major Affairs; 60-Day Notice of Proposed 3036—20 minutes; DS–3037—8 hours. disaster declaration on May 16, 2002, I Information Collection: Form DS–3036, Total Estimated Burden: DS–3036— find that Clinton and Essex Counties in Exchange Visitor Program Application 1200 hours; DS–3037—1,000 hours. the State of New York constitute a and Form DS–3037, Update of Public comments are being solicited disaster area due to damages caused by Information on Exchange Visitor to permit the Department to: an earthquake occurring on April 20, Program Sponsor; OMB Control 2002. Applications for loans for Number 1405–0120 —Evaluate whether the proposed physical damage as a result of this information collection is necessary for disaster may be filed until the close of ACTION: Notice. the proper performance of the business on July 15, 2002 and for functions of the Department, economic injury until the close of SUMMARY: The Office of Exchange including whether the proposed business on February 17, 2003 at the Coordination and Designation, Bureau information collection is necessary for address listed below or other locally of Educational and Cultural Affairs; 60- the proper performance of the announced locations: U.S. Small Day Notice of Proposed Information functions of the Department. Business Administration, Disaster Area Collection: Exchange Visitor Program • Evaluate the accuracy of the 1 Office, 360 Rainbow Blvd., South 3rd Application—Form DS–3036; Update of Department’s estimate of the burden of Fl., Niagara Falls, NY 14303–1192. Information on Exchange Visitor the proposed collection, including the In addition, applications for economic Program Sponsor—Form DS–3037. OMB validity of the methodology and injury loans from small businesses Approval Number 1405–0120. assumptions used. located in the following contiguous Action: The Department of State is • counties may be filed until the specified seeking Office of Management and Enhance the quality, utility, and date at the above location: Franklin, Budget (OMB) approval for the clarity of the information to be Hamilton, Warren and Washington information collection described below. collected. Counties in the State of New York; and The purpose of this notice is to allow 60 —Minimize the reporting burden on Addison, Chittenden and Grand Isle days for public comment in the Federal those who are to respond, including Counties in the State of Vermont. Register preceding submission to OMB. through the use of automated The interest rates are: This process is conducted in accordance collection techniques or other forms with the Paperwork Reduction Act of of technology. Percent 1995. Comments should be submitted to FOR FURTHER ADDITIONAL INFORMATION: OMB within 30 days of the publication For Physical Damage: Copies of the proposed information Homeowners with credit avail- of this notice. The following collection and supporting documents able elsewhere ...... 6.625 summarizes the information collection may be obtained from Sally J. Lawrence, Homeowners without credit proposal submitted to OMB: Chief, Private Sector Division, Office of available elsewhere ...... 3.312 Type of Request: Comment. Exchange Coordination and Businesses with credit available Originating Office: Office of Exchange Designation, Bureau of Educational and elsewhere ...... 7.000 Coordination and Designation, Bureau Cultural Affairs, U.S. Department of Businesses and non-profit orga- of Educational and Cultural Affairs. nizations without credit avail- State, 301 Fourth Street, SW, Room 734, Title of Information Collection: Washington, DC 20547; telephone 202– able elsewhere ...... 3.500 Exchange Visitor Program Application— Others (Including Non-Profit Or- 401–9810. Public comments and ganizations) with credit avail- Form DS–3036; Update of Information questions should be directed to the State able elsewhere ...... 6.375 on Exchange Visitor Program Sponsor— Department Desk Officer, Office of For Economic Injury: DS–3037. Information and Regulatory Affairs, Businesses and small agricul- Frequency: Form DS–3036— Office of Management and Budget tural cooperatives without Approximately 150 new organizations (OMB), Washington, DC 20530, who credit available elsewhere ..... 3.500 submit applications to be designated as may be reached on 202–395–3897. Exchange Visitor Program sponsors each The number assigned to this disaster year. DS–3037—The Department has Dated: April 4, 2002. for physical damage is 341402. For approximately 1500 currently James D. Whitten, economic injury the number is 9P7600 designated sponsors. It is estimated that Executive Director, Bureau of Educational for New York; and 9P7700 for Vermont. each designated organization makes two and Cultural Affairs, Department of State. (Catalog of Federal Domestic Assistance submissions annually to update [FR Doc. 02–13144 Filed 5–23–02; 8:45 am] Program Nos. 59002 and 59008) information on their Program or to order BILLING CODE 4710–05–P

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DEPARTMENT OF TRANSPORTATION notice. Comments and material received Background from the public, as well as this notice, The National Distress and Response Coast Guard will become part of this docket and will System forms the backbone of the Coast [USCG–1998–3584] be available for inspection or copying at Guard’s Short Range Communication Room PL–401 on the Plaza level of the System (SRCS) that supports Coast Proposed Modernization of the Coast Nassif Building, 400 Seventh Street, Guard Activity, Group, Marine Safety Guard National Distress and Response SW., Washington DC, between 9 a.m. Office (MSO), Vessel Traffic Service System and 5 p.m., Monday through Friday, (VTS), Air Station, Cutter and Station except Federal holidays. You may also AGENCY: Coast Guard, DOT. operations. As part of the SRCS, the find this docket on the Web Site at NDRS incorporates the use of VHF–FM ACTION: Notice of intent to prepare a http://www.dms.dot.gov. radios to provide two-way voice Supplemental Program Environmental FOR FURTHER INFORMATION CONTACT: If communications coverage for the Assessment. you have questions on this notice, the majority of Coast Guard missions in SUMMARY: The U.S. Coast Guard intends proposed project, or the associated coastal areas and navigable waterways to prepare a Supplemental Program assessment, call Donna M. Meyer, where commercial and recreational Environmental Assessment (SPEA) for Environmental Program Manager, traffic exists. The system, consisting of the National Distress and Response National Distress and Response System approximately 300 remotely controlled System Modernization Project Modernization Project, U.S. Coast Guard VHF transceiver sites, monitors the (NDRSMP). The SPEA will supplement Headquarters, 202–267–1496 or e-mail international VHF–FM maritime distress our July 1998 Programmatic her at [email protected]. For frequency (Channel 16), and is the Environmental Assessment (PEA) with questions on viewing or submitting primary command and control network respect to modernizing and deploying material to the docket, contact Dorothy to coordinate Coast Guard search and the National Distress and Response Beard, Chief, Dockets, Department of rescue (SAR) response activities. The System (NDRS) and it will examine Transportation, 202–366–5149. secondary function is to provide command, control, and communications reasonable alternatives for the SUPPLEMENTARY INFORMATION: deployment of dual mode VHF/UHF for the Coast Guard missions of national radio equipment to either an existing Request for Comments security, maritime safety, law enforcement, and marine environmental NDS antenna tower site, antenna tower We encourage you to submit space leased from a commercial protection. comments and related material on our In July 1998, the Coast Guard provider, or new construction of an Supplemental Program Environmental antenna tower site. We are requesting published a Programmatic Assessment. If you do so, please include Environmental Assessment that early public input on these alternatives your name and address, identify the and the potential for environmental considered general concepts to docket number for this notice (USCG– modernize the current obsolete and impacts as a result of implementing 1998–3584), and provide background them. nonstandard system. The alternatives support for each comment. You may we considered included: DATES: Comments and related material submit your comments and material by Alternative A—Status quo. must reach the Docket Management mail, hand delivery, fax, or electronic Alternative B—Upgrade status quo by Facility on or before June 24, 2002. means to the Docket Management systematically upgrading the existing ADDRESSES: To make sure your Facility at the address under ADDRESSES; network with modern analog comments and related material are not but please submit your comments and transceivers. This alternative replaces entered more than once in the docket, material by only one means. When old equipment with new equipment and please submit them by only one of the submitting by mail or hand delivery, adds additional radio capability. It is following means: submit your comments or material in an expected this alternative would require (1) By mail to the Docket Management unbound format, no larger than 81⁄2 by additional antenna sites. Facility (USCG–1998–3584), U.S. 11 inches, suitable for copying and Alternative C—Dual mode VHF and/ Department of Transportation, Room electronic filing. If you submit them by or UHF network replaces existing analog PL–401, 400 Seventh Street, SW., mail and would like to know if the network with dual mode (digital and Washington, DC 20590–0001. comments and/or material were analog) transceivers. It is expected this (2) By delivery to Room PL–401 on received by the facility, please enclose alternative would require additional the Plaza level of the Nassif Building, a stamped, self-addressed postcard or antenna sites. And, 400 Seventh Street, SW., Washington envelope. The Coast Guard will Alternative D—Multi-mode: Satellite, DC, between 9 a.m. and 5 p.m., Monday consider all comments and material cellular, VHF and/or UHF network. This through Friday, except Federal holidays. received during the comment period. alternative replaces the existing network The telephone number is 202–366– Public Hearing with multi-mode equipment that 9329. utilizes satellite, cellular, and VHF/UHF (3) By fax to the Docket Management We do not now plan to hold a public communications. It is expected that this Facility at 202–493–2251. hearing. But you may submit a request alternative would require additional (4) Electronically through the Web for one to the Docket Management antenna sites. Site for the Docket Management System Facility at the address under ADDRESSES Alternatives B, C, and D would all at http://dms.dot.gov. explaining why one would be require approximately the same number In choosing among these means, beneficial. If we determine that one of additional antenna sites. Since 1998, please give due regard to recent would aid us in preparing the SPEA, new circumstances and relevant difficulties and delays associated with and would significantly aid in our information regarding the deployment delivery of mail through the U.S. Postal environmental review and analysis for of the system to an existing antenna site, Service to Federal facilities. the proposal, we will hold one at a time or leasing an antenna site, or The Docket Management Facility and place announced by a later notice constructing a new antenna site as well maintains the public docket for this in the Federal Register. as the Coast Guard’s preference for

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Alternative C, call for a Supplemental DEPARTMENT OF TRANSPORTATION DEPARTMENT OF TRANSPORTATION Program Environmental Assessment to consider any environmental impacts Federal Aviation Administration National Highway Traffic Safety that were previously not taken into Administration account. Forum in Capabilities of the Global Positioning System (GPS) Wide Area [Docket No. NHTSA–2002–12317] Supplemental Programmatic Augmentation System (WAAS) and Environmental Assessment Local Area Augmentation System Notice of Receipt of Petition for (LAAS) Decision that Nonconforming 1997– Pursuant to the National 2000 Mercedes Benz SL Class (W129) Environmental Policy Act (NEPA) of AGENCY: Federal Aviation Passenger Cars Are Eligible for 1969, and the President’s Council on Administration, DOT. Importation Environmental Quality Regulations (40 CFR parts 1500–1508), we intend to ACTION: Notice of meeting. AGENCY: National Highway Traffic prepare a Supplemental Program Safety Administration, DOT. Environmental Assessment for the Name: FAA SOIT Forum on GPS/ ACTION: Notice of receipt of petition for National Distress and Response System WAAS/LAAS Capabilities. decision that nonconforming 1997–2000 Modernization Project. Time and Date: 9 a.m.–5 p.m., June 3– Mercedes Benz SL Class (W129) passenger cars are eligible for 4, 2002. Information, data, and comments importation. obtained throughout the course of the Place: Holiday Inn Fair Oaks Hotel, Scoping process may be used in the 11787 Lee Jackson Memorial Hwy, SUMMARY: This document announces preparation of the SPEA. The purpose of Fairfax, Virginia 22033. receipt by the National Highway Traffic this notice of intent is to inform the Safety Administration (NHTSA) of a Status: Open to the aviation industry public, local, State, and Federal petition for a decision that 1997–2000 with attendance limited to space government agencies that a Mercedes Benz SL Class (W129) available. Supplemental PEA will be prepared. passenger cars that were not originally Purpose: The FAA SOIT will be In addition, the SPEA will provide manufactured to comply with all hosting a public forum to discuss the applicable Federal motor vehicle safety those interested with an opportunity to FAA’s GPS approvals and WAAS/LAAS standards are eligible for importation present their comments, information, or operational implementation plans. This into the United States because (1) they other relevant observations concerning meeting will be held in conjunction are substantially similar to vehicles that alternatives and potential with a regularly scheduled meeting of were originally manufactured for environmental impacts relating to the the FAA SOIT and in response to importation into and sale in the United deployment and installation of the aviation industry requests to the FAA States and that were certified by their NDRSMP. Alternatives under Administrator. Formal presentations by manufacturer as complying with the consideration include: (1) Taking no the FAA will be followed by question safety standards, and (2) they are action; (2) deployment to existing and answer sessions. Those planning to capable of being readily altered to antenna tower sites; (3) leasing antenna attend are invited to submit proposed conform to the standards. space on an existing tower; and (4) new discussion topics. DATE: The closing date for comments on construction of a tower site. the petition is June 24, 2002. Registration: Participants are Our efforts to coordinate with requested to register their intent to ADDRESS: Comments should refer to the appropriate Federal, State and local attend this meeting by May 31, 2002. docket number and notice number, and agencies, and private organizations and Names, affiliations, email addresses, be submitted to: Docket Management, citizens who have expressed interest in telephone and facsimile numbers Room PL–401, 400 Seventh St., SW., Washington, DC 20590. [Docket hours this proposal will continue. The SPEA should be sent to the point of contact are from 9 am to 5 pm]. will be made available for public and listed below. agency review and comment. To ensure FOR FURTHER INFORMATION CONTACT: that the full range of issues related to Point of Contact: Registration and George Entwistle, Office of Vehicle the proposed action are addressed and submission of suggested discussion Safety Compliance, NHTSA (202–366– that all significant issues are identified, topics may be made to Mr. Steven 5306). Albers, phone (202) 267–7301, fax (202) we invite your comments and SUPPLEMENTARY INFORMATION: suggestions. 267–5086, or email at [email protected]. Background Dated: May 17, 2002. Issued in Washington DC on May 3, 2002. C.D. Wurster, Under 49 U.S.C. 30141(a)(1)(A), a Hank Cabler, motor vehicle that was not originally RADM, U.S. Coast Guard, Assistant manufactured to conform to all Commandant for Acquisitions. SOIT Co-Chairman. [FR Doc. 02–13134 Filed 5–23–02; 8:45 am] applicable Federal motor vehicle safety [FR Doc. 02–13130 Filed 5–23–02; 8:45 am] standards shall be refused admission BILLING CODE 4910–15–P BILLING CODE 4910–13–M into the United States unless NHTSA has decided that the motor vehicle is substantially similar to a motor vehicle originally manufactured for importation into and sale in the United States, certified under 49 U.S.C. 30115, and of the same model year as the model of the motor vehicle to be compared, and is capable of being readily altered to

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conform to all applicable Federal motor Components, 207 Seating Systems, 209 and shoulder belts that are self- vehicle safety standards. Seat Belt Assemblies, 210 Seat Belt tensioning and that release by means of Petitions for eligibility decisions may Assembly Anchorages, 212 Windshield a single red pushbutton. Petitioner be submitted by either manufacturers or Retention, 219 Windshield Zone further states that the vehicles are importers who have registered with Intrusion, 301 Fuel System Integrity, and equipped with a seat belt warning lamp NHTSA pursuant to 49 CFR part 592. As 302 Flammability of Interior Materials. that is identical to the lamp installed on specified in 49 CFR 593.7, NHTSA In addition, the petitioner claims that U.S.-certified models. publishes notice in the Federal Register the vehicles comply with the Bumper Standard No. 214 Side Impact of each petition that it receives, and Standard found in 49 CFR part 581. Protection: inspection of all vehicles to affords interested persons an The petitioner also contends that the ensure that they are equipped with door opportunity to comment on the petition. vehicles are capable of being readily bars identical to those in the U.S. At the close of the comment period, altered to meet the following standards, certified model and installation of those NHTSA decides, on the basis of the in the manner indicated: components on vehicles that are not petition and any comments that it has Standard No. 101 Controls and already so equipped. received, whether the vehicle is eligible Displays: (a) Inscription of the word The petitioner states that a vehicle for importation. The agency then ‘‘brake’’ on the dash in place of the identification plate must be affixed to publishes this decision in the Federal international ECE warning symbol; (b) the vehicles near the left windshield Register. recalibration of the speedometer to read post and a reference and certification Automobile Concepts, Inc. of North in miles per hour and inscription of the label must be affixed in the area of the Miami, Florida (‘‘AMC’’) (Registered letters ‘‘MPH’’ on the speedometer face, left front door post to meet the Importer 01–278) has petitioned NHTSA or replacement of the entire instrument requirements of 49 CFR part 565. to decide whether 1997–2000 Mercedes cluster with the U.S.-model component. Interested persons are invited to Benz SL Class (W129) passenger cars are Standard No. 108 Lamps, Reflective submit comments on the petition eligible for importation into the United Devices and Associated Equipment: (a) described above. Comments should refer States. The vehicles which AMC Installation of U.S.-model headlamps; to the docket number and be submitted believes are substantially similar are (b) installation of U.S.-model side to: Docket Management, Room PL–401, 1997–2000 Mercedes Benz SL Class markers; (c) installation of U.S.-model 400 Seventh St., SW, Washington, DC (W129) passenger cars that were tail lamp assemblies which incorporate 20590. (Docket hours are from 9 am to manufactured for importation into, and rear sidemarker lights; (d) installation of 5 pm). It is requested but not required sale in, the United States and certified a U.S.-model high mounted stop light that 10 copies be submitted. by their manufacturer as conforming to assembly if the vehicle is not already so All comments received before the all applicable Federal motor vehicle equipped. close of business on the closing date safety standards. Standard No. 110 Tire Selection and indicated above will be considered, and The petitioner claims that it carefully Rims: installation of a tire information will be available for examination in the compared non-U.S. certified 1997–2000 placard. docket at the above address both before Mercedes Benz SL Class (W129) Standard No. 111 Rearview Mirror: and after that date. To the extent passenger cars to their U.S.-certified replacement of the passenger side possible, comments filed after the counterparts, and found the vehicles to rearview mirror with a U.S.-model closing date will also be considered. be substantially similar with respect to component, or inscription of the Notice of final action on the petition compliance with most Federal motor required warning statement on that will be published in the Federal vehicle safety standards. mirror. Register pursuant to the authority AMC submitted information with its Standard No. 114 Theft Protection: indicated below. petition intended to demonstrate that activation of the warning buzzer. non-U.S. certified 1997–2000 Mercedes Standard No. 118 Power Window Authority: 49 U.S.C. 30141(a)(1)(A) and Benz SL Class (W129) passenger cars, as (b)(1); 49 CFR 593.8; delegations of authority Systems: reprogramming of the power at 49 CFR 1.50 and 501.8. originally manufactured, conform to window system so that the windows many Federal motor vehicle safety will not operate with the ignition off. Issued on: May 21, 2002. standards in the same manner as their Standard No. 201 Occupant Marilynne Jacobs, U.S. certified counterparts, or are Protection in Interior Impact: inspection Director, Office of Vehicle Safety Compliance. capable of being readily altered to of each vehicle to ensure that [FR Doc. 02–13143 Filed 5–23–02; 8:45 am] conform to those standards. appropriate components have been BILLING CODE 4910–59–P Specifically, the petitioner claims that installed to meet the requirements of the non-U.S. certified 1997–2000 Mercedes standard, and replacement of any Benz SL Class (W129) passenger cars are component that is not a U.S.-model part. DEPARTMENT OF TRANSPORTATION identical to their U.S. certified The petitioner states that the counterparts with respect to compliance manufacturer has identified the vehicle Research and Special Programs with Standard Nos. 102 Transmission as meeting the upper interior head Administration Shift Lever Sequence * * *, 103 impact requirements of the standard. Defrosting and Defogging Systems, 104 Standard No. 208 Occupant Crash Office of Hazardous Materials Safety Windshield Wiping and Washing Protection: (a) Activation of the seat belt Systems, 105 Hydraulic Brake Systems, warning buzzer by reprogramming the Notice of Applications for Modification 106 Brake Hoses, 109 New Pneumatic unit; (b) inspection of all vehicles and of Exemption Tires, 113 Hood Latch Systems, 116 replacement of the driver’s and AGENCY: Research and Special Programs Brake Fluid, 124 Accelerator Control passenger’s side air bags, control units, Administration, DOT. Systems, 135 Passenger Car Brake sensors, and seat belts with U.S.-model ACTION: List of Applications for Systems, 202 Head Restraints, 204 components on vehicles that are not Modification of Exemptions. Steering Control Rearward already so equipped. Petitioner states Displacement, 205 Glazing Materials, that the front outboard designated SUMMARY: In accordance with the 206 Door Locks and Door Retention seating positions have combination lap procedures governing the application

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for, and the processing of, exemptions application number. Application FOR FURTHER INFORMATION CONTACT: from the Department of Transportation’s numbers with the suffix ‘‘M’’ denote a Copies of the applications are available Hazardous Materials Regulations (49 modification request. These for inspection in the Records Center, CFR part 107, subpart B), notice is applications have been separated from Nassif Building, 400 7th Street SW., hereby given that the Office of the new applications for exemptions to Washington, DC or at http:// Hazardous Materials Safety has received facilitate processing. dms.dot.gov. the application described herein. This DATES: Comments must be received on This notice of receipt of applications notice is abbreviated to expedite or before June 10, 2002. docketing and public notice. Because for modification of exemptions is the sections affected, modes of ADDRESSES: Records Center, Research published in accordance with part 107 transportation, and the nature of and Special Programs Administration, of the Federal hazardous materials application have been shown in earlier U.S. Department of Transportation, transportation law (49 U.S.C. 5117(b); Federal Register publications, they are Washington, DC 20590. 49 CFR 1.53(b)). not repeated here. Requests for Comments should refer to the Issued in Washington, DC, on May 21, modifications of exemptions (e.g. to application number and be submitted in 2002. provide for additional hazardous triplicate. If confirmation of receipt of J. Suzanne Hedgepeth, materials, packaging design changes, comments is desired, include a self- additional mode of transportation, etc.) addressed stamped postcard showing Director, Office of Hazardous Materials are described in footnotes to the the exemption number. Exemptions and Approvals.

Modification of Application number‘ Docket number Applicant exemption

7657–M ...... Welker Engineering Company, Sugar Land, TX (See Footnote 1) 7657 8125–M ...... Bristol Bay Contractors, Inc., King Salmon, AK (See Footnote 2) .. 8125 8915–M ...... E.I. DuPont de Nemours and Company, Wilmington, DE (See 8915 Footnote 3). 9508–M ...... Callery Chemical Company, Pittsburgh, PA (See Footnote 4) ...... 9508 10882–M ...... Espar Products, Inc., Mississauga, Ontario L5T 1Z8, CN (See 10882 Footnote 5). 12102–M ...... RSPA–98–4005 ...... Onyx Environmental Services, L.L.C., Ledgewood, NJ (See Foot- 12102 note 6). 12882–M ...... RSPA–01–11125 .... Eagle-Picher Technologies, LLC, Joplin, MO (See Footnote 7) ..... 12882 (1) To modify the exemption to authorize the transportation of additional Division 2.1, 2.2, 2.3 and Class 3 materials in a non-DOT specification stainless steel cylinder. (2) To modify the exemption to authorize the installation of a nozzle for a roto gage in the non-DOT specification IMO Type 5 portable tank for the transportation of certain Division 2.1, 2.2 and Class 3 materials. (3) To modify the exemption to authorize the transportation of an additional Division 2.1 material in a manifolded DOT Specification cylinder. (4) To modify the exemption to authorize the transportation of an additional Division 4.3 material in DOT Specification cylinders. (5) To modify the exemption to authorize the use of additional temperature controlled systems for use in motor vehicles transporting Division 2.1 and Class 3 materials. (6) To modify the exemption to authorize the transportation of an additional Division 1.1D explosive material desensitized in an appropriate sol- vent to be shipped as a Class 3 material. (7) To reissue the exemption originally issued on an emergency basis for the transportation of a Division 2.1 material in a non-DOT specifica- tion pressure vessel.

[FR Doc. 02–13129 Filed 5–23–02; 8:45 am] excavation practices. We have also projects in the spring and summer BILLING CODE 4910–60–M asked our partners in the Common months such as gardening, installing Ground Alliance, a new national non- mailboxes, outdoor lights and other profit damage prevention organization, projects that require digging. Figures for DEPARTMENT OF TRANSPORTATION and the Associated General Contractors excavation damage from RSPA’s Office of America and the National Utility of Pipeline Safety (OPS) show an Research and Special Programs Contractors Association, to help upward trend in the warmer months. Administration distribute this advisory. To protect construction workers and Notice to Operators of Natural Gas and I. Supplementary Information the general public and to guard the Hazardous Liquid Pipelines To integrity of the nation’s underground Encourage Continued Implementation Several recent incidents have infrastructure, RSPA has implemented of Safe Excavation Practices provided the impetus to remind the several damage prevention programs. pipeline operators of the importance of AGENCY: Research and Special Programs safe excavation practices. Increase in These programs were developed in Administration (RSPA), DOT. construction activity coincides with the partnership with pipeline operators, ACTION: Notice: Protecting buried arrival of spring in many parts of the excavators, one-call centers, locators, pipelines by using safe excavation country and extends through the state pipeline safety agencies, and practices. summer months. Construction activity others involved in damage prevention requires excavators to work around for underground facilities. SUMMARY: RSPA is issuing this advisory buried pipelines and other underground The Common Ground Study, issued notice to operators of natural gas and facilities, such as water, sewer, by OPS, contains best practices for all hazardous liquid pipelines to remind electrical and phone lines. Many private them of the importance of safe citizens also undertake excavation

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phases of damage prevention. In excavators and private citizens from the 2-year period; and (4) the particular, pipeline operators need to injury and to guard the integrity of requirements at 49 CFR 1105.7 provide accurate maps of their facilities buried pipelines and other underground (environmental reports), 49 CFR 1105.8 to one-call centers; these maps must be facilities, OPS reminds all concerned to (historic reports), 49 CFR 1105.11 updated regularly to reflect any changes. implement the best practices of the (transmittal letter), 49 CFR 1105.12 When locate requests are received, Common Ground Study and the four (newspaper publication), and 49 CFR facility operators need to be sure that steps of the Dig Safely Campaign. 1152.50(d)(1) (notice to governmental their facilities are marked in a timely —Call Before You Dig agencies) have been met. and accurate manner whether this is —Wait the Required Time in Your State As a condition to this exemption, any done by operator staff or by contract for Operators to Mark Their Facilities employee adversely affected by the locators. When facility operators are —Observe Marks Indicating the discontinuance shall be protected under excavating, they need to call for locates Presence of Facilities When You Dig Oregon Short Line R. Co.— of other facilities, observe the markings —Dig With Care–protect both yourself Abandonment—Goshen, 360 I.C.C. 91 of those facilities and take care to avoid and the facilities where you are digging. (1979). To address whether this coming into contact with other lines We ask pipeline operators to while digging. RSPA urges pipeline condition adequately protects affected undertake the following steps as part of employees, a petition for partial operators to review the procedures their damage prevention efforts: identified in this study and to revocation under 49 U.S.C. 10502(d) —increasing their vigilance on right-of- must be filed. implement them. way inspections; The Common Ground Study can be —reviewing their own procedures for Provided no formal expression of viewed on line at following up on locate requests; intent to file an offer of financial www.commongroundalliance.com. —ensuring that operator employees and assistance (OFA) has been received, this These best practices have been contract employees follow Best exemption will be effective on June 25, adopted by many professional Practices; and 2002, unless stayed pending associations including the Associated —increasing outreach efforts to the reconsideration. Petitions to stay and General Contractors, the National Utility excavator community during the spring formal expressions of intent to file an Contractors Association, National season. OFA under 49 CFR 1152.27(c)(2) 1 must Utility Locating Contractors Association be filed by June 3, 2002.2 Petitions to Issued in Washington, DC, on May 17, and others in the damage prevention 3 2002. reopen must be filed by June 13, 2002, community. Promotion of these with: Surface Transportation Board, Stacey L. Gerard, practices is now under the auspices of Case Control Unit, 1925 K Street, NW., the Common Ground Alliance (CGA) Associate Administrator for Pipeline Safety. Washington, DC 20423. [FR Doc. 02–13142 Filed 5–23–02; 8:45 am] which represents virtually every A copy of any petition filed with the BILLING CODE 4910–60–P segment of the damage prevention Board should be sent to applicants’ community. CGA has also assumed representative: Edward D. Greenberg, responsibility for promotion of the Dig DEPARTMENT OF TRANSPORTATION Galland, Kharasch, Greenberg, Fellman Safely Campaign launched by DOT in & Swirsky, P.C., Canal Square, 1054 1999 which identified four key steps in Surface Transportation Board Thirty-First Street, NW., Suite 200, safe excavation: Washington, DC 20007. —Call Before You Dig [STB Docket No. AB–598X] —Wait the Required Time in Your State If the verified notice contains false or BHP Nevada Railroad Company— for Operators to Mark Their Facilities misleading information, the exemption Discontinuance of Service —Observe Marks Indicating the is void ab initio. Exemption—in Elko and White Pine Presence of Facilities When You Dig Board decisions and notices are Counties, NV —Dig With Care–protect both yourself available on our website at and the facilities where you are digging. BHP Nevada Railroad Company (BHP ‘‘WWW.STB.DOT.GOV.’’ The National Transportation Safety Nevada) filed a notice of exemption Decided: May 15, 2002. Board has recommended an important under 49 CFR part 1152 Subpart F- additional step, that excavators should Exempt Abandonments and 1 Each offer of financial assistance must be notify the pipeline operator Discontinuances to discontinue service accompanied by the filing fee, which, as of April immediately if their work damages a over 146 miles of railroad between 8, 2002, is currently set at $1,100. See 49 CFR pipeline and that excavators should call milepost 0.0 in Cobre and milepost 1002.2(f)(25). 146.1 in Keystone, in Elko and White 2 While applicant initially indicated a proposed 911 immediately if the damage results consummation date of June 22, 2002, and because in a release of natural gas or other Pine Counties, NV. The line traverses applicant failed to publish notice in the newspaper hazardous substances or potentially United States Postal Service Zip Codes as required, and a new filing date of May 6, 2002, endangers, life, health or property. 89835, 89301, 89315 and 89318. was entered when proof of publication was BHP Nevada certified that: (1) No received. Because the verified notice was not II. Advisory Bulletin (ADB–02–01) complete until May 6, 2002, and hence was not local traffic has moved over the line for deemed filed until then, the earliest possible date To: Owners and Operators of Natural at least 2 years; (2) there is no overhead for consummation is 50 days from May 6, 2002 Gas and Hazardous Liquid Pipeline traffic on the line; (3) no complaint filed (June 25, 2002). Applicant’s representative has Systems by a user of rail service on the line (or confirmed that the correction consummation date is on or after June 25, 2002. Subject: Notification to Stress the by a state or local government entity 3 Because this is a discontinuance proceeding and Importance of Safe Excavation Practices acting on behalf of such user) regarding abandonment is not proposed, trail use/rail banking Advisory: The arrival of warmer cessation of service over the line either or public use conditions are not appropriate. weather coincides with a significant is pending with the Surface Likewise, no environmental or historic documentation is required because the increase in construction activity both by Transportation Board (Board) or with circumstances here are similar to those for which professional excavators and home any U.S. District Court or has been exceptions are provided under 49 CFR 1105.6(c)(6) owners and renters. To protect decided in favor of complainant within and 1105.8.

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By the Board, David M. Konschnik, Washington, DC 20423–0001; and (2) (South Segment) and to discontinue Director, Office of Proceedings. Thomas R. Ogoreuc, 135 Jamison Lane, service over a 1.04-mile portion of the Vernon A. Williams, Monroeville, PA 15146. Replies to the line from milepost 13.64 to milepost Secretary. DM&IR petition are due on or before 21.70 near Northfield (North Segment), [FR Doc. 02–12819 Filed 5–23–02; 8:45 am] June 13, 2002. a total distance of 9.10 miles, in Cook 2 BILLING CODE 4915–00–P Persons seeking further information County, IL. The line traverses U.S. concerning abandonment procedures Postal Service Zip Codes 60076 and may contact the Board’s Office of Public 60077 and includes no stations. DEPARTMENT OF TRANSPORTATION Services at (202) 565–1592 or refer to The line does not contain federally the full abandonment or discontinuance granted rights-of-way. Any Surface Transportation Board regulations at 49 CFR part 1152. documentation in UP’s possession will [STB Docket No. AB–101 (Sub-No. 17X)] Questions concerning environmental be made available promptly to those issues may be directed to the Board’s requesting it. Duluth, Missabe and Iron Range Section of Environmental Analysis The interest of railroad employees Railway Company—Abandonment (SEA) at (202) 565–1552. [TDD for the will be protected by Oregon Short Line Exemption—in St. Louis County, MN hearing impaired is available at 1–800– R. Co.—Abandonment—Goshen, 360 877–8339.] I.C.C. 91 (1979). On May 7, 2002, Duluth, Missabe and An environmental assessment (EA) (or By issuance of this notice, the Board Iron Range Railway Company (DM&IR) environmental impact statement (EIS), if is instituting an exemption proceeding filed with the Surface Transportation necessary) prepared by SEA will be pursuant to 49 U.S.C. 10502(b). A final Board (Board) a petition under 49 U.S.C. served upon all parties of record and decision will be issued by August 23, 10502 for exemption from the upon any agencies or other persons who 2002. provisions of 49 U.S.C. 10903 to commented during its preparation. Any OFA under 49 CFR 1152.27(b)(2) abandon a 2-mile portion of the line Other interested persons may contact will be due no later than 10 days after known as the Sliver Branch, between SEA to obtain a copy of the EA (or EIS). service of a decision granting the milepost S–0.0 and milepost S–2.0, in EAs in these abandonment proceedings petition for exemption. Each OFA must the City of Virginia in St. Louis County, normally will be made available within be accompanied by the filing fee, which MN. The line traverses United States 60 days of the filing of the petition. currently is set at $1,100. See 49 CFR Postal Service Zip Code 55792. The deadline for submission of 1002.2(f)(25). The line does not contain any comments on the EA will generally be All interested persons should be federally granted rights-of-way. Any within 30 days of its service. aware that, following abandonment of documentation in DM&IR’s possession Board decisions and notices are rail service and salvage of the South will be made available promptly to available on our Web site at Segment of the line, it may be suitable those requesting it. ‘‘www.stb.dot.gov.’’ for other public use, including interim The interest of railroad employees Decided: May 21, 2002. trail use. Any request for a public use will be protected by the conditions set condition under 49 CFR 1152.28 or for forth in Oregon Short Line R. Co.— By the Board, David M. Konschnik, Director, Office of Proceedings. trail use/rail banking under 49 CFR Abandonment—Goshen, 360 I.C.C. 91 1152.29 will be due no later than June Vernon A. Williams, (1979). 13, 2002.3 Each trail use request must be By issuing this notice, the Board is Secretary. accompanied by a $150 filing fee. See 49 instituting an exemption proceeding [FR Doc. 02–13157 Filed 5–23–02; 8:45 am] CFR 1002.2(f)(27). pursuant to 49 U.S.C. 10502(b). A final BILLING CODE 4915–00–P All filings in response to this notice decision will be issued by August 23, must refer to STB Docket No. AB–33 2002. (Sub-No. 167X) and must be sent to: (1) Any offer of financial assistance DEPARTMENT OF TRANSPORTATION Surface Transportation Board, Case (OFA) under 49 CFR 1152.27(b)(2) will Surface Transportation Board Control Unit, 1925 K Street, NW, be due no later than 10 days after Washington, DC 20423–0001; and (2) service of a decision granting the [STB Docket No. AB–33 (Sub–No. 167X)] Mack H. Shumate, Jr., Senior General petition for exemption. Each OFA must Attorney, 101 North Wacker Drive, Suite be accompanied by the filing fee, which Union Pacific Railroad Company— 1920, Chicago, IL 60606. Replies to the is currently set at $1,100. See 49 CFR Abandonment and Discontinuance UP petition are due on or before June 1002.2(f)(25). Exemption—in Cook County, IL 13, 2002. All interested persons should be aware that, following abandonment of On May 7, 2002, Union Pacific Railroad Company (UP) filed with the 2 In Union Pacific Railroad Company— rail service and salvage of the line, the Discontinuance of Service—In Cook County, IL, line may be suitable for other public Surface Transportation Board (Board) a STB Docket No. AB–33 (Sub-No. 167) (STB served use, including interim trail use. Any petition under 49 U.S.C. 10502 for Mar. 28, 2001) (Waiver Decision), UP was granted request for a public use condition under exemption from the provisions of 49 a waiver from certain regulations requiring the U.S.C. 10903–05 1 to abandon an 8.06- filing of specific information in a discontinuance of 49 CFR 1152.28 or for trail use/rail service application. UP has elected instead to file banking under 49 CFR 1152.29 will be mile portion of a line of railroad, known this petition for exemption seeking to abandon the due no later than June 13, 2002. Each as the Skokie Industrial Lead (the line), South Segment and to discontinue service on the trail use request must be accompanied extending from milepost 12.60 south of North Segment. UP seeks to use the waiver only for Oakton Street to the north side of the North Segment. by a $150 filing fee. See 49 CFR 3 Because UP seeks to discontinue rail service 1002.2(f)(27). Dempster Street at milepost 13.64 over the North Segment of the line and not to All filings in response to this notice abandon that segment, the trail use/rail banking and must refer to STB Docket No. AB–101 1 UP seeks exemptions from the offer of financial public use conditions are not applicable. See assistance (OFA) provisions of 49 U.S.C. 10904 and Waiver Decision. Therefore, a public use condition (Sub-No. 17X) and must be sent to: (1) the public use provisions of 49 U.S.C. 10905. These and trail use/rail banking may be requested only for Surface Transportation Board, Case exemption requests will be addressed in the final the South Segment of the line (milepost 12.60 to Control Unit, 1925 K Street, NW., decision. milepost 13.64).

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Persons seeking further information received that result in a contrary suspected of engaging in terrorist and concerning abandonment and determination and notice is published other criminal activities, including discontinuance procedures may contact to that effect. information provided to FinCEN from the Board’s Office of Public Services at ADDRESSES: Written comments should financial institutions regarding such (202) 565–1592 or refer to the full be sent to: FinCEN, P.O. Box 39, Vienna, individuals, entities, and organizations. abandonment or discontinuance VA 22183–0039, Attention: Revisions to Existing routine use (7) for the regulations at 49 CFR part 1152. PA Systems of Records—Comments. Suspicious Activity Reporting System Questions concerning environmental Comments may also be submitted by would permit FinCEN to disclose issues may be directed to the Board’s electronic mail to the following Internet information within that System to Section of Environmental Analysis address— financial institutions to the extent (SEA) at (202) 565–1552. [TDD for the [email protected]—with necessary to elicit information pertinent hearing impaired is available at 1–800– the above caption in the body of the to the investigation, prosecution, or 877–8339.] text. Comments may be inspected at enforcement of civil or criminal statutes, An environmental assessment (EA) (or FinCEN between 10 a.m. and 4 p.m., in rules, regulations, or orders. environmental impact statement (EIS), if the FinCEN Reading Room in The Bank Secrecy Act Reports System necessary) prepared by SEA will be Washington, DC. Persons wishing to also is being amended, consistent with served upon all parties of record and inspect the comments submitted must section 358 of the USA PATRIOT Act, upon any agencies or other persons who request an appointment by telephoning to reflect that BSA reports may be commented during its preparation. (202) 354–6400. provided to appropriate self-regulatory Other interested persons may contact FOR FURTHER INFORMATION CONTACT: organizations when relevant to the SEA to obtain a copy of the EA (or EIS). Albert R. Zarate, Senior Regulatory responsibilities of those organizations. EAs in these abandonment proceedings Counsel, Office of Chief Counsel, Existing routine use (3) for the normally will be made available within FinCEN, (703) 905–3590. Suspicious Activity Report System 60 days of the filing of the petition. The SUPPLEMENTARY INFORMATION: The already contains similar language. deadline for submission of comments on systems of records contain information Finally, the Bank Secrecy Act Reports the EA will generally be within 30 days collected under the authority of the System also is being amended to clarify of its service. Bank Secrecy Act, the popular name for that FinCEN Form 8300 information Board decisions and notices are Titles I and II of Public Law 91–508, as reported under the Bank Secrecy Act available on our Web site at amended, and codified at 12 U.S.C. and its implementing regulations, as ‘‘WWW.STB.DOT.GOV.’’ 1829b, 12 U.S.C. 1951–1959, and 31 authorized by section 365 of the USA Decided: May 21, 2002. U.S.C. 5311–5331. The regulations PATRIOT Act, is covered by that By the Board, David M. Konschnik, implementing the authority contained system. For purposes of clarity, other Director, Office of Proceedings. in the Bank Secrecy Act are found at 31 technical changes to the systems of Vernon A. Williams, CFR part 103. The authority to records are being made, as indicated Secretary. administer 31 CFR part 103 has been later in this document. Because information in the systems of [FR Doc. 02–13156 Filed 5–23–02; 8:45 am] delegated to FinCEN. records may be retrieved by personal BILLING CODE 4915–00–P The systems of records are being revised to reflect certain changes in the identifier, the Privacy Act of 1974 law made by the Uniting and requires the Treasury to give general notice and seek public comments when DEPARTMENT OF THE TREASURY Strengthening America by Providing Appropriate Tools Required to Intercept making substantive changes to these Financial Crimes Enforcement Network and Obstruct Terrorism (USA PATRIOT) Systems. Privacy Act of 1974; Systems of Act of 2001, Public Law 107–56 The altered system of records report, Records (October 26, 2001). The USA PATRIOT as required by 5 U.S.C. 552a(r), has been Act, among other things, provides the submitted to the Committee on AGENCY: Financial Crimes Enforcement Treasury with additional authorities Government Reform in the House of Network, Treasury. relating to the collection, use, and Representatives, the Committee on ACTION: Notice of alterations to two dissemination of information, including Governmental Affairs in the Senate, and Privacy Act systems of records. Bank Secrecy Act information, to help Office of Management and Budget, prevent, detect, and prosecute money pursuant to Appendix I to OMB Circular SUMMARY: In accordance with the laundering and the financing of A–130, ‘‘Federal Agency Privacy Act of 1974, as amended, the terrorism. Responsibilities for Maintaining Financial Crimes Enforcement Network Specifically, the routine uses for the Records About Individuals,’’ November (FinCEN), Department of the Treasury systems of records are being amended, 30, 2000. (Treasury), gives notice of proposed consistent with section 358 of the USA For the reasons set forth above, alterations to existing systems of records PATRIOT Act, to make clear that Bank FinCEN proposes to alter the Suspicious entitled the ‘‘Suspicious Activity Secrecy Act information may be Activity Reporting System and the Bank Reporting System—Treasury/DO .212’’ provided to United States intelligence Secrecy Act Reports System as follows: and the ‘‘Bank Secrecy Act Reports agencies for the purpose of conducting TREASURY/DO .212 System—Treasury/DO .213’’. The intelligence or counterintelligence, systems of records were last published including analysis, to protect against SYSTEM NAME: in their entirety on February 19, 2002, international terrorism. at 67 FR 7496, and 67 FR 7498, Suspicious Activity Report System The Suspicious Activity Reporting (the ‘‘SAR System’’)—Treasury/DO. respectively. System also is being altered, consistent DATES: Comments must be received no with section 314 of the USA PATRIOT SYSTEM LOCATION: later than June 24, 2002. The revised Act, to reflect that it may contain Description of change: Delete the systems of records will be effective as of information relating to individuals, existing sentence in this paragraph and July 3, 2002, unless comments are entities, and organizations reasonably in its place add the following language:

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The Internal Revenue Service Detroit individuals, entities, and ‘‘Information or reports filed under Computing Center, 985 Michigan organizations.’’ the Bank Secrecy Act and its Avenue, Detroit, Michigan 48226–1129 * * * * * implementing regulations (31 CFR Part and the Financial Crimes Enforcement 103) including, but not limited to, Network (‘‘FinCEN’’), P.O. Box 39, AUTHORITY FOR MAINTENANCE OF THE SYSTEM: reports made on IRS Form 4789 Vienna, VA 22183–0039.’’ Description of change: Replace the (Currency Transaction Report), IRS words ‘‘Department of the Treasury Form 8362 (Currency Transaction CATEGORIES OF INDIVIDUALS COVERED BY THE Order 105–08’’ with the words ‘‘31 Report by Casinos), forms filed by SYSTEM: U.S.C. 310’’. casinos located in the State of Nevada * * * * * * * * * * in lieu of Form 8362, FinCEN Form Description of change: In category 8300 (Report of Cash Payments Over (2)(b) of this paragraph, replace the ROUTINE USES OF RECORDS MAINTAINED IN THE $10,000 Received in a Trade or words ‘‘31 U.S.C. 5311, et seq.’’ with the SYSTEM, INCLUDING CATEGORIES OF USERS AND Business), Customs Form 4790 (Report words ‘‘31 U.S.C. 5311–5331.’’ The THE PURPOSES OF SUCH USES: of International Transportation of word ‘‘and’’ at the end of category (8) is * * * * * Currency or Monetary Instruments), removed. The period ‘‘.’’ at the end of Description of change: The word Treasury Form TDF 90–22.1 (Report of category (9) is replaced with a ‘‘and’’ at the end of routine use (11) is Foreign Bank and Financial Accounts), semicolon (;) and categories (10), (11) removed. The period ‘‘.’’ at the end of Treasury Form TDF 90–22.53 and (12) are added to read as follows: routine use (12) is replaced with a (Designation of Exempt Person), and ‘‘(10) Individuals, entities and semicolon (;), and routine use (13) is Treasury Form TDF 90–22.55 organizations suspected of engaging in added to read as follows: (Registration of Money Services terrorist and other criminal activities ‘‘(13) Disclose information to United Businesses).’’ and any person who may be affiliated States intelligence agencies in the * * * * * with such individuals, entities or conduct of intelligence or organizations; counterintelligence activities, including AUTHORITY FOR MAINTENANCE OF THE SYSTEM: (11) Individuals or entities named by analysis, to protect against international Description of change: Replace the financial institutions as persons to be terrorism.’’ words ‘‘31 U.S.C. 5311–5314, 5316 et contacted for further assistance by * * * * * seq.’’ with the words ‘‘31 U.S.C. 5311– government agencies in connection with 5331’’ and replace the words ‘‘Treasury individuals, entities or organizations TREASURY/DO .213 Department Order No. 105–08’’ with the suspected of engaging in terrorist or words ‘‘31 U.S.C. 310’’. other criminal activities; SYSTEM NAME: (12) Individuals or entities involved Bank Secrecy Act Reports System— PURPOSES: in evaluating or investigating any Treasury/DO. Description of Change: In the first matters in connection with individuals, * * * * * sentence of this paragraph, replace the entities or organizations suspected of words ‘‘31 U.S.C. 5311–5314, 5316, et engaging in terrorist or other criminal CATEGORIES OF INDIVIDUALS COVERED BY THE seq’’ with the words ‘‘31 U.S.C. 5311– SYSTEM: activity.’’ 5331’’ and add the words ‘‘, or in the Description of change: The first conduct of intelligence or CATEGORIES OF RECORDS IN THE SYSTEM: sentence of this paragraph is revised to counterintelligence activities, including Description of change: Delete the first read as follows: analysis, to protect against international sentence of this paragraph and in its ‘‘Persons identified in reports filed terrorism’’ before the period. under the Bank Secrecy Act and its place add the following language to read * * * * * as follows: implementing regulations (31 CFR part ‘‘The SAR System contains 103) including, but not limited to, ROUTINE USES OF RECORDS MAINTAINED IN THE information reported to FinCEN by a reports made on IRS Form 4789 SYSTEM, INCLUDING CATEGORIES OF USERS AND financial institution (including, but not (Currency Transaction Report), IRS THE PURPOSES OF SUCH USES: limited to, a depository institution, a Form 8362 (Currency Transaction * * * * * money services business, a broker- Report by Casinos), forms filed by Description of changes: a. Delete the dealer in securities, and a casino) on a casinos located in the State of Nevada current text of routine use (4) and in its Suspicious Activity Report (‘‘SAR’’) that in lieu of Form 8362, FinCEN Form place add the following to read as is filed voluntarily or as required under 8300 (Report of Cash Payments Over follows: the authority of FinCEN, one or more of $10,000 Received in a Trade or ‘‘Provide information or records to the Federal Supervisory Agencies, or Business), Customs Form 4790 (Report any appropriate domestic or non-United under any other authority. The SAR of International Transportation of States governmental agency or self- System also may contain information Currency or Monetary Instruments), regulatory organization charged with the that may relate to terrorist or other Treasury Form TDF 90–22.1 (Report of responsibility of administering law or criminal activity that is reported Foreign Bank and Financial Accounts), investigating or prosecuting violations voluntarily to FinCEN by any individual Treasury Form TDF 90–22.53 of law, or charged with the or entity through any other means, (Designation of Exempt Person), and responsibility of enforcing or including through FinCEN’s Financial Treasury Form TDF 90–22.55 implementing a statute, rule, regulation, Institutions Hotline. The SAR System (Registration of Money Services order, or policy, when relevant to the also may contain information relating to Businesses).’’ responsibilities of these agencies or individuals, entities, and organizations * * * * * organizations;’’ reasonably suspected based on credible * * * * * evidence of engaging in terrorist or other CATEGORIES OF RECORDS IN THE SYSTEM: b. The word ‘‘and’’ at the end of criminal activities, including Description of change: The first routine use (7) is removed. The period information provided to FinCEN from sentence of this paragraph is revised to ‘‘.’’ at the end of routine use (8) is financial institutions regarding such read as follows: replaced with a semicolon (;), and

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routine use (9) is added to read as FOR FURTHER INFORMATION CONTACT: You Supervision, 1700 G Street, NW., follows: can request additional information Washington, DC 20552. ‘‘(9) Provide information or records to about this proposed information OMB Reviewer: Alexander Hunt, (202) United States intelligence agencies in collection from Nadine Washington, 395–7860, Office of Management and the conduct of intelligence or Information Systems, Administration & Budget, Room 10202, New Executive counterintelligence activities, including Finance, (202) 906–6706, Office of Office Building, Washington, DC 20503. analysis, to protect against international Thrift Supervision, 1700 G Street, NW., Dated: May 16, 2002. terrorism.’’ Washington, DC 20552. Deborah Dakin, * * * * * SUPPLEMENTARY INFORMATION: Deputy Chief Counsel, Regulations and Dated: April 8, 2002. OTS may not conduct or sponsor an Legislation Division. information collection, and respondents W. Earl Wright, Jr., [FR Doc. 02–13066 Filed 5–23–02; 8:45 am] are not required to respond to an BILLING CODE 6720–01–P Chief Management and Administrative information collection, unless the Programs Officer. information collection displays a [FR Doc. 02–13053 Filed 5–23–02; 8:45 am] currently valid OMB control number. As DEPARTMENT OF VETERANS BILLING CODE 4810–02–P part of the approval process, we invite AFFAIRS comments on the following information collection. DEPARTMENT OF THE TREASURY Cost-of-Living Adjustments and Comments should address one or Headstone or Marker Allowance Rate more of the following points: Office of Thrift Supervision a. Whether the proposed collection of AGENCY: Department of Veterans Affairs. Proposed Agency Information information is necessary for the proper ACTION: Notice. Collection Activities; Comment performance of the functions of OTS; b. The accuracy of OTS’s estimate of SUMMARY: As required by law, the Request the burden of the proposed information Department of Veterans Affairs (VA) is AGENCY: Office of Thrift Supervision collection; hereby giving notice of cost-of-living (OTS), Treasury. c. Ways to enhance the quality, adjustments (COLAs) in certain benefit ACTION: Notice and request for comment. utility, and clarity of the information to rates and income limitations. These be collected; COLAs affect the pension, parents’ SUMMARY: The Department of the d. Ways to minimize the burden of the dependency and indemnity Treasury, as part of its continuing effort information collection on respondents, compensation (DIC), and spina bifida, to reduce paperwork and respondent including through the use information and birth defects programs. These burden, invites the general public and technology. adjustments are based on the rise in the other Federal agencies to comment on We will summarize the comments Consumer Price Index (CPI) during the proposed and continuing information that we receive and include them in the one-year period ending September 30, collections, as required by the OTS request for OMB approval. All 2001. VA is also giving notice of the Paperwork Reduction Act of 1995, 44 comments will become a matter of maximum amount of reimbursement U.S.C. 3507. The Office of Thrift public record. In this notice, OTS is that may be paid for headstones or Supervision within the Department of soliciting comments concerning the markers purchased in lieu of the Treasury will submit the proposed following information collection. Government-furnished headstones or information collection requirement Title of Proposal: Voluntary markers in Fiscal Year 2002, which described below to the Office of Dissolution. began on October 1, 2001. Management and Budget (OMB) for OMB Number: 1550–0066. DATES: These COLAs are effective review, as required by the Paperwork Form Number: OTS Form 1499, also December 1, 2001. The headstone or Reduction Act. Today, OTS is soliciting known as Form DV. marker allowance rate is effective public comments on the proposal. Regulation Requirement: 12 CFR October 1, 2001. 546.4. DATES: Submit written comments on or FOR FURTHER INFORMATION CONTACT: Paul Description: 12 CFR 546.4 provides before July 23, 2002. Trowbridge, Consultant, Compensation for Federal associations to voluntarily and Pension Service (212B), Veterans ADDRESSES: Send comments, referring to dissolve through the submission of a Benefits Administration, Department of the collection by title of the proposal or statement of reasons and plan of Veterans Affairs, 810 Vermont Avenue, by OMB approval number, to dissolution. Approval is required by the NW., Washington, DC 20420, (202) 273– Information Collection Comments, Chief board of directors, OTS, and the 7218. Counsel’s Office, Office of Thrift association’s members. Plans for Supervision, 1700 G Street, NW., dissolution may be denied if OTS SUPPLEMENTARY INFORMATION: Under 38 Washington, DC 20552; send a facsimile believes the plan is not in the best U.S.C. 2306(d), VA may provide transmission to (202) 906–6518; or send interests of concerned parties. reimbursement for the cost of non- an e-mail to Type of Review: Renewal. Government headstones or markers at a [email protected]. Affected Public: Savings Associations. rate equal to the actual cost or the OTS will post comments and the related Estimated Number of Respondents: 4. average actual cost of Government- index on the OTS Internet Site at Estimated Frequency of Response: furnished headstones or markers during www.ots.gov. In addition, interested Event-generated. the fiscal year preceding the fiscal year persons may inspect comments at the Estimated Burden Hours Per in which the non-Government Public Reading Room, 1700 G Street, Response: Plan for dissolution—80 headstone or marker was purchased, NW., by appointment. To make an hours; disclosure to customers—10 whichever is less. appointment, call (202) 906–5922, send minutes per customer. Section 8041 of Pub. L. 101–508 an e-mail to [email protected], or Estimated Total Burden: 3,080. amended 38 U.S.C. 2306(d) to eliminate send a facsimile transmission to (202) Clearance Officer: Sally W. Watts, the payment of the monetary allowance 906–7755. (202) 906–7380, Office of Thrift in lieu of VA-provided headstone or

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marker for deaths occurring on or after on the basis of a 2.5% (as opposed to TABLE 1.—IMPROVED PENSION— November 1, 1990. However, in a 2.4%) December 1, 1999, COLA. This Continued precedent opinion (O. G. C. Prec. 17– adjustment was mandated by the [Maximum annual rates] 90), VA’s General Counsel held that Consolidated Appropriations Act, 2001 there is no limitation period applicable (Pub. L. 106–554) which requires that (5) Surviving spouse alone and to claims for benefits under the each Federal agency that administers an with a child or children of the provisions of 38 U.S.C. 2306(d). applicable Federal benefit program deceased veteran in custody The average actual cost of compensate beneficiaries for the of the surviving spouse (38 Government-furnished headstones or shortfall caused by the December 1, U.S.C. 1541): Surviving spouse alone ...... 6,407 markers during any fiscal year is 1999 CPI error. Therefore, applying the Surviving spouse and one determined by dividing the sum of VA COLA factors as indicated above and child in his or her custody 8,389 costs during that fiscal year for rounding up in accordance with 38 CFR For each additional child in procurement, transportation, and 3.29, the following increased rates and his or her custody ...... 1,630 miscellaneous administration, income limitations for the VA pension (6) Surviving spouses in need inspection and support staff by the total and parents’ DIC programs will be of aid and attendance (38 number of headstones and markers effective December 1, 2001: U.S.C. 1541): procured by VA during that fiscal year Surviving spouse alone ...... 10,243 and rounding to the nearest whole TABLE 1.—IMPROVED PENSION Surviving spouse with one child in custody ...... 12,221 dollar amount. [Maximum annual rates] Surviving Spouse of Spanish- The average actual cost of American War veteran Government-furnished headstones or (1) Veterans permanently and alone ...... 10,905 markers for Fiscal Year 2001 under the totally disabled (38 U.S.C. Surviving Spouse of Spanish- above computation method was $109. 1521): American War veteran with Therefore, effective October 1, 2001, the Veteran with no dependents $9,556 one child in custody ...... 12,882 maximum rate of reimbursement for Veteran with one dependent 12,516 For each additional child in non-Government headstones or markers For each additional depend- his or her custody ...... 1,630 purchased during Fiscal Year 2002 is ent ...... 1,630 (7) Surviving spouses who are (2) Veterans in need of aid and $109. housebound (38 U.S.C. attendance (38 U.S.C. 1521): 1541): Cost of Living Adjustments Veteran with no dependents 15,945 Surviving spouse alone ...... 7,832 Veteran with one dependent 18,902 Surviving spouse and one Under the provisions of 38 U.S.C. For each additional depend- child in his or her custody 9,810 5312 and section 306 of Pub. L. 95–588, ent ...... 1,630 For each additional child in VA is required to increase the benefit (3) Veterans who are house- his or her custody ...... 1,630 rates and income limitations in the bound (38 U.S.C. 1521): (8) Surviving child alone (38 pension and parents’ DIC programs by Veteran with no dependents 11,679 U.S.C. 1542) ...... 1,630 the same percentage, and effective the Veteran with one dependent 14,639 same date, as increases in the benefit For each additional depend- Reduction for income. The rate ent ...... 1,630 amounts payable under title II of the (4) Two veterans married to payable is the applicable maximum rate Social Security Act. The increased rates one another, combined rates minus the countable annual income of and income limitations are also required (38 U.S.C. 1521): the eligible person. (38 U.S.C. 1521, to be published in the Federal Register. Neither veteran in need of 1541 and 1542). The Social Security Administration aid and attendance or Mexican border period and World has announced that there will be a 2.6 housebound ...... 12,516 War I veterans. The applicable percent cost-of-living increase in Social Either veteran in need of aid maximum annual rate payable to a Security benefits effective December 1, and attendance ...... 18,902 Mexican border period or World War I 2001. However, the actual increase Both veterans in need of aid veteran under this table shall be and attendance ...... 24,628 reflected in this document will be Either veteran housebound ... 14,639 increased by $2,166. (38 U.S.C. 1521(g)) slightly greater than 2.6% to Both veterans housebound ... 16,763 Parents’ DIC compensate for an error in the One veteran housebound calculation of the 1999 Consumer Price and one veteran in need of DIC shall be paid monthly to parents Index (CPI). The 2.6% COLA effective aid and attendance ...... 21,022 of a deceased veteran in the following December 1, 2001, has been recalculated For each dependent child ..... 1,630 amounts (38 U.S.C. 1315):

TABLE 2. [One parent. If there is only one parent, the monthly rate of DIC paid to such parent shall be $457 reduced on the basis of the parent’s annual income according to the following formula:]

For each $1 of annual income The $457 monthly rate shall be reduced by Which is more than But not more than

$0.00 ...... $0 $800 .08 ...... 800 10,871 No DIC is payable under this table if annual income exceeds $10,871.

One parent who has remarried. If parent’s spouse, DIC shall be paid under paid to the veteran’s parent. In the case there is only one parent and the parent Table 2 or under Table 4, whichever of remarriage, the total combined annual has remarried and is living with the shall result in the greater benefit being income of the parent and the parent’s

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spouse shall be counted in determining who are not living together, or (2) an to each such parent shall be $329 the monthly rate of DIC. unmarried parent when both parents are reduced on the basis of each parent’s Two parents not living together. The living and the other parent has annual income, according to the rates in Table 3 apply to (1) two parents remarried. The monthly rate of DIC paid following formula:

TABLE 3.

For each $1 of annual income The $329 monthly rate shall be reduced by Which is more than But not more than

$0.00 ...... 0 $800 .06 ...... 800 900 .07 ...... 900 1,100 .08 ...... 1,100 10,871 No DIC is payable under this table if annual income exceeds $10,871.

Two parents living together or each remarried parent, when both annual income of the two parents living remarried parents living with spouses. parents are alive. The monthly rate of together or the remarried parent or The rates in Table 4 apply to each DIC paid to such parents will be $309 parents and spouse or spouses, as parent living with another parent; and reduced on the basis of the combined computed under the following formula:

TABLE 4.

For each $1 of annual income The $309 monthly rate shall be reduced by Which is more than But not more than

$0.00 ...... 0 $1,000 .03 ...... 1,000 1,500 .04 ...... 1,500 1,900 .05 ...... 1,900 2,400 .06 ...... 2,400 2,900 .07 ...... 2,900 3,200 .08 ...... 3,200 14,612 No DIC is payable under this table if combined annual income exceeds $14,612.

The rates in this table are also Aid and attendance. The monthly rate or require the regular aid and applicable in the case of one surviving of DIC payable to a parent under Tables attendance of another person. parent who has remarried, computed on 2 through 4 shall be increased by $246 Minimum rate. The monthly rate of the basis of the combined income of the if such parent is (1) a patient in a DIC payable to any parent under Tables parent and spouse, if this would be a nursing home, or (2) helpless or blind, 2 through 4 shall not be less than $5. greater benefit than that specified in or so nearly helpless or blind as to need Table 2 for one parent.

TABLE 5.—SECTION 306 PENSION INCOME LIMITATIONS

(1) Veteran or surviving spouse with no dependents ...... $10,871 (Pub. L. 95–588, section 306(a)). (2) Veteran with no dependents in need of aid and attendance ...... 11,371 (38 U.S.C. 1521(d) as in effect on December 31, 1978). (3) Veteran or surviving spouse with one or more dependents ...... 14,612 (Pub. L. 95–588, section 306(a)). (4) Veteran with one or more dependents in need of aid and attendance ...... 15,112 (38 U.S.C. 1521(d) as in effect on December 31, 1978). (5) Child (no entitled veteran or surviving spouse) ...... 8,886 (Pub. L. 95–588, section 306(a)). (6) Spouse income exclusion (38 CFR 3.262) ...... 3,468 (Pub. L. 95–588, section 306(a)(2)(B)).

TABLE 6.—OLD-LAW PENSION INCOME LIMITATIONS

(1) Veteran or surviving spouse without dependents or an entitled child ...... $9,516 (Pub. L. 95–588, section 306(b)). (2) Veteran or surviving spouse with one or more dependents ...... 13,719 (Pub. L. 95–588, section 306(b)).

Spina Bifida Benefits children born with spina bifida who are U.S.C. 5312, which provides for the natural children of veterans who served adjustment of certain VA benefit rates Section 421 of Public Law 104–204 in the Republic of Vietnam during the whenever there is an increase in benefit added a new chapter 18 to title 38, Vietnam era. Pursuant to 38 U.S.C. amounts payable under title II of the United States Code, authorizing VA to 1805(b)(3), spina bifida rates are subject Social Security Act (42 U.S.C. 401 et provide certain benefits, including a to adjustment under the provisions of 38 monthly monetary allowance, to

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seq.). Effective December 1, 2001, spina administrative matters and to discuss (12C2), 801 I Street, NW., Washington, bifida monthly rates are as follows: the general status of program. The DC at (202) 565–8381. Level I—$228 closed portion of the meeting involves Dated: May 20, 2002. Level II—$792 discussion, examination, reference to, By Direction of the Secretary. Level III—$1,354 and oral review of staff and consultant Nora E. Egan, critiques of research protocols and Birth Defects Benefits Committee Management Officer. similar documents. During this portion Section 401 of Public Law 106–419 of the meeting, discussion and [FR Doc. 02–13098 Filed 5–23–02; 8:45 am] authorizes the payment of monetary recommendations will include BILLING CODE 8320–01–M benefits to, or on behalf of, children of qualifications of the personnel female Vietnam veterans born with conducting the studies (the disclosure of certain birth defects. Rates are subject to DEPARTMENT OF VETERANS which would constitute a clearly AFFAIRS adjustment under the provisions of 38 unwarranted invasion of personal U.S.C. 5312, which provides for the privacy), as well as research information President’s Task Force To Improve adjustment of certain VA benefit rates (the premature disclosure of which whenever there is an increase in benefit Health Care Delivery for Our Nation’s would be likely to frustrate significantly Veterans; Notice of Meeting amounts payable under title II of the the implementation of proposed agency Social Security Act (42 U.S.C. 401 et action regarding such research projects). The Department of Veterans Affairs seq.). Effective December 1, 2001, birth As provided by the subsection 10(d) of (VA) gives notice under Public Law 92– defects monthly rates are as follows: Public Law 92–463, as amended by 463 (Federal Advisory Committee Act) Level I—$100 Public Law 94–409, closing portions of that a meeting of the President’s Task Level II—$228 these meetings is in accordance with 5 Force to Improve Health Care Delivery Level III—$792 for Our Nation’s Veterans is scheduled Level IV—$1,354 U.S.C. 552(c)(6) and (9)(B). Those who are planning to attend the for Wednesday, June 5, 2002, beginning Dated: May 16, 2002. open session or wishing further at 9 a.m. and adjourning at 4 p.m. and Anthony J. Principi, information should contact Dr. Martha Thursday, June 6, 2002, beginning at Secretary of Veterans Affairs. Bryan, Assistant Director, Scientific 8:30 a.m. and adjourning at 11:30 a.m. [FR Doc. 02–13095 Filed 5–23–02; 8:45 am] Review (124F), Health Services The June 5 session will be held in the Horizon Ballroom of the Ronald Reagan BILLING CODE 8320–01–P Research and Development Service, Department of Veterans Affairs, 1400 Building International Trade Center, Eye Street, NW., Suite 780, Washington, 1300 Pennsylvania Avenue, NW., DEPARTMENT OF VETERANS DC at (202) 408–3665. Washington, DC. The June 6 session will AFFAIRS be held in the First Floor Conference Dated: May 20, 2002. Room of the VFW Memorial Building, Scientific Review and Evaluation Nora E. Egan, 200 Maryland Avenue, NE., Board for Health Services Research Committee Management Officer. Washington, DC. Both sessions are open and Development Service; Notice of [FR Doc. 02–13099 Filed 5–23–02; 8:45 am] to the general public. Meeting BILLING CODE 8320–01–M The purpose of the President’s Task Force to Improve Health Care Delivery The Department of Veterans Affairs for Our Nation’s Veterans is to: gives notice under Public Law 92–463 DEPARTMENT OF VETERANS (a) Identify ways to improve benefits (Federal Advisory Committee Act) that AFFAIRS and services for Department of Veterans a meeting of the Scientific Review and Affairs (VA) beneficiaries and Evaluation Board for Health Services National Research Advisory Council; Department of Defense (DoD) military Research and Development Service will Notice of Meeting retirees who are also eligible for benefits be held at the Crowne Plaza Hotel, 14th from VA, through better coordination of and K Streets, NW., Washington, DC, The Department of Veterans Affairs the activities of the two departments; from June 19 through 21, 2002. The (VA) gives notice under Public Law 92– (b) Identify opportunities to remove Nursing Research Initiative review will 463 (Federal Advisory Committee Act) barriers that impede VA and DoD convene on June 19, from 1 p.m. until that the National Research Advisory coordination, including budgeting 5 p.m. The investigator Initiated Council will meet at the Hyatt Dulles, processes, timely billing, cost Research review will convene on June 2300 Dulles Corner Boulevard, accounting, information technology, and 19, from 7 p.m. until 9 p.m., on June 20, Herndon, VA 20171, on June 20, 2002, reimbursement; and from 8 a.m. until 5 p.m. and on June 21, from 8:30 a.m. until 4 p.m. The meeting (c) Identify opportunities through from 8 a.m. until 4 p.m. The purpose of is open to the public. The purpose of the partnership between VA and DoD, to the meeting is to review research and Council is to provide external advice maximize the use of resources and development applications concerned and review for VA’s research mission. infrastructure, including buildings, with the measurement and evaluation of The meeting will begin with opening information technology and data sharing health care services and with testing remarks and an overview by the Council systems, procurement of supplies, new methods of health care delivery Chairman. The Council will receive equipment and services. and management, and nursing research. informational briefings on the VA On the morning of June 5, the Vision Applications are reviewed for scientific Health Services Research Program, Work Group and the Leadership Work and technical merit. Recommendations human subjects protection issues in VA Group will brief the Committee. During regarding funding are prepared for the and the peer review process. the afternoon session, the Benefits and Chief Research and Development Any member of the public wishing to Services Work Group, Resources and Officer. attend the meeting or further Budgeting Work Group, and This meeting will be open to the information should contact Ms. Karen Pharmaceuticals Work Group will brief public at the start of the June 19 session Scott, Department of Veterans Affairs, the Committee. On the morning of June for approximately one half-hour to cover Office of Research and Development 6, the Acquisition and Procurement

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Work Group, Facilities Work Group, and DEPARTMENT OF VETERANS for use by VA in the construction and Information Management/Information AFFAIRS alteration of facilities as prescribed Technology Work Group will brief the under Section 8105 of Title 38, United Committee. Advisory Committee on Structural States Code. Safety of Department of Veterans On June 6, the Committee will review Interested parties can provide written Affairs Facilities; Notice of Meeting comments to Mr. Dan Amon, developments in the field of structural Communications Director, President’s The Department of Veterans Affairs design, as they relate to seismic safety Task Force to Improve Health Care (VA) gives notice under Public Law 92– of buildings, and fire safety issues. On Delivery for Our Nation’s Veterans, 1401 463 (Federal Advisory Committee Act) June 7, the Committee will vote on structural and fire safety issues for Wilson Boulevard, 4th Floor, Arlington, that a meeting of the Advisory inclusion in VA’s standards. Virginia 22209. Committee on Structural Safety of Department of Veterans Affairs Those wishing to attend should Dated: May 20, 2002. Facilities will be held on Thursday, contact Kristna K. Banga, Senior By Direction of the Secretary. June 6, 2002, from 10 a.m. until 5 p.m., Structural Engineer, Facilities Quality Nora E. Egan, and on Friday, June 7, 2002, from 9 a.m. Service, Office of Facilities Committee Management Office. until 12:30 p.m., in Room 460, Export Management, Department of Veterans Import Bank, 811 Vermont Avenue, [FR Doc. 02–13096 Filed 5–23–02; 8:45 am] Affairs, at (202) 565–9370. NW., Washington, DC. The meeting is Dated: May 17, 2002. BILLING CODE 8320–01–M open to the public. The purpose of the Committee is to By Direction of the Secretary. advise the Secretary of Veterans Affairs Nora E. Egan, on matters of structural safety in the Committee Management Officer. construction and remodeling of VA [FR Doc. 02–13097 Filed 5–23–02; 8:45 am] facilities and to recommend standards BILLING CODE 8320–01–M

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Corrections Federal Register Vol. 67, No. 101

Friday, May 24, 2002

This section of the FEDERAL REGISTER FEDERAL COMMUNICATIONS Thursday, May 16, 2002, make the contains editorial corrections of previously COMMISSION following correction: published Presidential, Rule, Proposed Rule, On page 34865, first column, fifth and Notice documents. These corrections are 47 CFR Parts 21 and 74 prepared by the Office of the Federal line, ‘‘not’’ should read ‘‘now’’. [WT Docket No. 02–68; RM–9718; FCC 02– Register. Agency prepared corrections are [FR Doc. C2–12022 Filed 5–23–02; 8:45 am] issued as signed documents and appear in 101] the appropriate document categories BILLING CODE 1505–01–D elsewhere in the issue. Mulitpoint Distribution Service (‘‘MDS’’) and Instructional Television Fixed Service (‘‘ITFS’’) DEPARTMENT OF THE TREASURY

ENVIRONMENTAL PROTECTION Correction Internal Revenue Service AGENCY In proposed rule document 02–12429 beginning on page 35083 in the issue of 26 CFR Part 1 40 CFR Part 80 Friday, May 17, 2002, make the following correction: [TD 8987] Prohibition on Gasoline Containing On page 35083, in the second column, Lead or Lead Additives for Highway under the heading DATES:, ‘‘June 17, Use: Fuel Inlet Restrictor Exemption 2002’’ should read, ‘‘July 16, 2002’’. RIN 1545–AY69, 1545–AY70 for Motorcycles [FR Doc. C2–12429 Filed 5–23–02; 8:45 am] Required Distributions From Correction BILLING CODE 1505–01–D Retirement Plans Rule document 01-31797 was Correction inadvertently published in the Proposed DEPARTMENT OF TRANSPORTATION Rules section in the issue of Thursday, In rule document 02–8963 beginning December 27, 2001, appearing on page Immigration and Naturalization Service on page 18988 in the issue of 66867. It should have appeared in the Wednesday, April 17, 2002, make the Rules and Regulations Section. 8 CFR Parts 103 and 214 following corrections: [FR Doc. C1–31797 Filed 5–23–02; 8:45 am] [INS No. 2185-02] § 1.401(a)(9)-9 [Corrected] BILLING CODE 1505–01–D RIN 1115-AG55 On page 19016, in the ‘‘JOINT AND Retention and Reporting of Information LAST SURVIVOR TABLE’’, the table is for F, J, and M Nonimmigrants; corrected in part to read as follows. Student and Exchange Visitor Information System (SEVIS) Correction In proposed rule document 02–12022 beginning on page 34865 in the issue of

JOINT AND LAST SURVIVOR TABLE

Ages 20 21 22 23 24 25 26 27 28 29

* ...... * * * * 25 ...... 67.9 67.3 66.7 66.2 65.6 65.1 64.6 64.2 63.7 63.3 * ...... * * * * 63 ...... 63.2 62.3 61.3 60.3 59.4 58.4 57.5 56.5 55.6 54.6 * ...... * * * *

[FR Doc. C2–8963 Filed 5–23–02; 8:45 am] BILLING CODE 1505–01–D

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Part II

Securities and Exchange Commission 17 CFR Part 230 et al. Mandated EDGAR Filing For Foreign Issuers; Final Rule

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SECURITIES AND EXCHANGE address: [email protected]. Your Statements and Annual Reports of COMMISSION comment letter should refer to File No. Foreign Private Issuers S7–18–01; include this file number in 2. Form 6–K Reports 17 CFR Parts 230, 232, 239, 240, 249, the subject line if you use electronic 3. Securities Act Registration Statements and 269 and Exchange Act Registration mail. We will make comment letters Statements and Reports of Foreign [Release Nos. 33–8099, 34–45922, available for public inspection and Governments International Series Release No. 1259; File copying in our Public Reference Room, 4. Multijurisdictional Disclosure System No. S7–18–01] 450 Fifth Street, NW, Washington, DC (‘‘MJDS’’) Forms 20549. We will post electronically 5. Schedules 13D and 13G and Tender RIN 3235–AI08 submitted comment letters on our Offer Schedules Internet web site (http://www.sec.gov).1 6. Form CB Mandated EDGAR Filing For Foreign 7. Forms F–X and F–N Issuers FOR FURTHER INFORMATION CONTACT: 8. Trust Indenture Act Forms Elliot B. Staffin, Special Counsel, Office 9. Reports of Supranational Entities AGENCY: Securities and Exchange of International Corporate Finance, 10. Exhibits Incorporated By Reference Commission. Division of Corporation Finance, by 11. Hardship Exemptions ACTION: Final rule. telephone at (202) 942–2990, or in 12. Documents Submitted Pursuant to writing at U.S. Securities and Exchange Exchange Act Rule 12g3–2(b) SUMMARY: We are adopting amendments Commission, 450 Fifth Street, NW, C. Treatment of Foreign Language to the rules that govern our Electronic Washington, DC 20549. Documents 1. The Adopted ‘‘English Summary’’ Data Gathering, Analysis, and Retrieval SUPPLEMENTARY INFORMATION: We are (EDGAR) system. These amendments Option adopting rule amendments that will 2. The Amended Form 6–K will require foreign private issuers and rescind Rule 601 2 under Regulation S– 3. Submission of Unabridged Foreign foreign governments to file T 3 and revise the following rules and Language Documents electronically through the EDGAR forms: Rules 403 and 493 4 under the 4. Elimination of Written Representation system most of their securities Securities Act of 1933 (‘‘Securities Requirement documents, including registration Act’’); 5 Rules 100, 101, 303, 306, and 5. Submission of a Foreign Government’s statements under the Securities Act of 311 6 under Regulation S–T; Rule 12b– Annual Budget 1933 and registration statements, reports 7 6. Permitted Inclusion of French and 12 under the Securities Exchange Act English Text in MJDS Forms and other documents under the 8 of 1934 (‘‘Exchange Act’’); and Forms 7. Conforming Amendments to Securities Securities Exchange Act of 1934. By F–1, F–2, F–3, F–4, F–6, F–7, F–8, F–9, Act and Exchange Act Forms mandating the electronic filing of F–10, F–80, F–X, and CB under the D. Transition Period foreign issuers’ securities documents on Securities Act; 9 and Forms 20–F, 40–F, E. The Commission’s Electronic Filing EDGAR, we hope to realize the same and 6–K,10 and Schedules 13E–4F, 14D– Hours investor benefits and the same 1F, and 14D–9F 11 under the Exchange F. Elimination of the Paper Filing efficiencies in information transmission, Act. Requirement for First-Time EDGAR dissemination, retrieval and analysis Filers achieved since we mandated EDGAR Table of Contents III. Paperwork Reduction Act Analysis I. Executive Summary and Background IV. Cost-Benefit Analysis filing for domestic issuers in 1993. We A. Background also are adopting rule amendments to A. Our Reasons for Adopting Mandated EDGAR Filing for Foreign Issuers B. Benefits clarify when an electronic or paper filer B. Comments Received C. Costs may submit an English summary instead C. Summary of the Amendments V. Promotion of Efficiency, Competition and of an English translation of a foreign II. Discussion Capital Formation Analysis language document. We are further A. Amendments to Regulation S–T VI. Regulatory Flexibility Act Certification eliminating the current requirement that Sections 100 and 601 VII. Statutory Basis and Text of Rule any first-time EDGAR filer, domestic or B. Foreign Issuer Forms and Documents Amendments Under the Amendments foreign, submit a paper copy of its I. Executive Summary and Background electronic filing to the Commission. 1. Securities Act Registration Statements and Exchange Act Registration EDGAR is the electronic data Finally, we are permitting a national gathering, analysis and retrieval securities exchange to file voluntarily 1 We do not edit personal, identifying system 12 of the Securities and Exchange on EDGAR a Form 25, which reports the information, such as names or electronic mail Commission (‘‘Commission’’) that delisting of a class of a company’s addresses, from electric submissions. Submit only enables registered companies and other securities. information that you wish to make publicly available. persons to file their securities DATES: Effective Date: November 4, 2 17 CFR 232.601. documents with the Commission in 2002, except for § 232.101(d), 3 17 CFR 232.10 et seq. electronic format.13 Filings submitted § 232.101(b)(10), and § 232.101(c)(9), 4 17 CFR 230.403 and 230.493. 5 15 U.S.C. 77a et seq. which are effective May 24, 2002. 12 We encourage foreign issuers and others who 6 Comments Due: Comments on the 17 CFR 232.100, 232.101, 232.303, 232.306 and are unfamiliar with our EDGAR system to review 232.311. the document entitled Electronic Filing and the ‘‘collection of information’’ 7 17 CFR 240.12b–12. EDGAR System: A Regulatory Overview (‘‘EDGAR requirements within the meaning of the 8 15 U.S.C. 78a et seq. Overview’’), which is available on our web site Paperwork Reduction Act of 1995 9 17 CFR 239.31, 239.32, 239.33, 239.34, 239.36, located at www.sec.gov/info/edgar/shtml. The should be received by June 24, 2002. 239.37, 239.38, 239.39, 239.40, 239.41, 239.42, and EDGAR Filer Manual, v. 8.2, which contains 239.800. Forms F–X and CB are also authorized as recently updated instructions for electronic filing, ADDRESSES: Please submit three copies Exchange Act forms under 17 CFR 249.250 and is also available on this web site. of your comments to Jonathan G. Katz, 249.480. Form F–X is further authorized under the 13 Filers can currently submit documents in Secretary, U.S. Securities and Exchange Trust Indenture Act of 1939 (‘‘Trust Indenture Act’’) electronic format by direct transmission, either by Commission, 450 Fifth Street, NW, [15 U.S.C. 77aaa et seq.] under Trust Indenture Act using a dial-up modem or Internet service provider, Rule 269.5 [17 CFR 269.5]. or on magnetic cartridge. EDGAR filers may submit Washington, DC 20549–0609. You also 10 17 CFR 249.220f, 249.240f, and 249.306. documents formatted either in American Standard may submit your comments 11 17 CFR 240.13e–102, 240.14d–102, and Code for Information Interchange (‘‘ASCII’’) or a electronically at the following e-mail 240.14d–103. version of HyperText Markup Language (‘‘HTML’’).

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on EDGAR are available to the public on while offering foreign filers a secure and number of foreign private issuers that our web site as well as through many reliable method of delivery; and have chosen to file voluntarily their other information providers. Registrants • More efficient storage, retrieval, and securities documents with the and other persons submitted over analysis of financial and other material Commission on EDGAR.20 326,600 filings on EDGAR in fiscal 2001 information about foreign filers than In addition, today a foreign issuer that and 305,000 filings in fiscal 2000. under the current paper and microfiche seeks to file electronically with the When we launched the operational regime, which will not only facilitate Commission is likely to be able to phase of EDGAR in 1993,14 we imposed staff review of a particular foreign transmit its electronically formatted electronic filing requirements only on issuer’s registration statement or report documents to us over the Internet domestic issuers.15 We based the initial but also enhance the Commission’s through the use of an Internet service exclusion of foreign issuers from the ability to study and address issues that provider, thereby saving in long mandated EDGAR regime in part on our confront foreign issuers. distance telecommunications belief that foreign issuers would incur In the initial operational phase of transmission costs. Moreover, a foreign higher costs from the implementation of EDGAR, with the Internet relatively issuer wanting filing assistance is now EDGAR than those faced by domestic undeveloped compared to today, more likely to be able to use a local filers.16 While we encouraged foreign electronic filers could only transmit filing agent, thanks to the global issuers to file their securities documents their documents directly to the expansion of financial printers and on EDGAR, we have not generally Commission over long distance consulting firms that are knowledgeable required these issuers to file telephone lines and not over the about the Commission’s EDGAR 18 electronically until now, although many Internet. As a result, foreign filers that requirements. foreign issuers file their securities attempted to transmit directly their Furthermore, many foreign filers documents on EDGAR on a voluntary electronic documents to the should today experience reduced basis.17 Commission faced higher long distance EDGAR start-up costs because they have transmission costs than those borne by already achieved a level of technological A. Our Reasons for Adopting Mandated domestic companies. Depending on proficiency. These initial costs include EDGAR Filing for Foreign Issuers their location, foreign filers also faced the costs associated with hiring an We expect EDGAR filing requirements potential shortages of long distance information technology team or training for foreign issuers to result in the lines and proper telecommunications existing employees to be technologically following benefits: equipment, such as compatible proficient, hiring a filing agent, hiring • More rapid dissemination of, and modems. Foreign filers also faced the an Internet service provider, and easier access to, financial and other widespread local unavailability of preparing the documents for electronic material information about foreign necessary computer hardware and formatting. Many foreign companies issuers than under our current paper software and trained personnel capable have already assembled an information filing system, which will facilitate the of transforming their documents into technology team to present their following of foreign filers’ securities by EDGAR compatible files. financial and business information on Since that time, many advances in investors, analysts and others while their web sites. Many of these information and telecommunications enhancing market exposure for these employees or agents are likely to be technology have occurred that have securities; familiar with HTML, which is a dramatically increased Internet use by • Increased efficiencies in the filing dominant language of the Internet. businesses, consumers, investors, and process, which will significantly reduce Because EDGAR now accepts government agencies. These advances the filing time required under documents formatted in a version of have transformed the Internet into one traditional methods of paper delivery, HTML as well as in ASCII, this of the principal means for the rapid familiarity with HTML should reduce dissemination and retrieval of Filers also may choose to provide an unofficial copy the time it takes for the information of a filing in Portable Document Format (‘‘PDF’’). information. Because of these advances, technology teams of many foreign 14 We initially launched EDGAR as a pilot most foreign private issuers that are issuers to learn the EDGAR system.21 program in 1984, which enabled companies to Exchange Act reporting companies participate voluntarily in the EDGAR system until already have electronically formatted 20 Approximately 18% and 20% of the foreign 1993. Release No. 33–6977 (February 23, 1993) [58 their financial statements and other private issuers that were Exchange Act reporting FR 14628]. companies at the end of, respectively, calendar 15 material information either for Following adoption of the operational EDGAR years 2000 and 2001 elected to file their securities rules in 1993, we phased in the electronic filing presentation on their web sites or to documents on EDGAR. See Part IV below for further requirements for domestic issuers in discrete comply with the requirements of their discussion. See also Foreign Companies Registered groups. The last group of domestic issuers became home country securities commissions.19 and Reporting With the U.S. Securities and mandated EDGAR filers in May 1996. Release No. These advances in information Exchange Commission December 31, 2001, 33–7369 (December 6, 1996) [61 FR 65440]. published by the Office of International Corporate 16 Currently, we require a foreign issuer or person technology also have increased the Finance, Division of Corporation Finance to file a document on EDGAR only if it jointly files (‘‘Reporting Foreign Issuers List’’) which is available a registration statement or some other document 18 Following amendments in 2000, EDGAR filers on our web site at www.sec.gov/divisions/corpfin/ with a domestic issuer or if it files a document, have been able to use direct transmission by either internatl/companies.shtml. The comparable list of such as a Schedule 13D or tender offer schedule, dial-up modem or the Internet as well as magnetic Exchange Act reporting foreign private issuers as of that pertains to a registered domestic issuer. See cartridges as means of transforming filings December 31, 2000 is also available on our web site. Rules 101(c) [17 CFR 232.101(c)] and 601(a) of electronically to the Commission. Release No. 33– 21 As part of an ongoing modernization of the Regulation S–T [17 CFR 232.601(a)]. 7855 (April 24, 2000) (65 FR 27488] EDGAR system, in addition to enabling issuers to 17 Regulation S–T currently provides for the 19 Approximately 81% of the foreign private transmit their electronic filings directly via the voluntary participation of foreign issuers in the issuers that were Exchange Act reporting companies Internet, we have sought to expand the range of EDGAR system under Rules 100(a) [17 CFR as of December 31, 2000, and nearly 78% of the electronic languages recognized by the EDGAR 232.100(a)] and 601(a) and (b) [17 CFR 232.601(a) foreign private issuers that became Exchange Act system. Since June 28, 1999, electronic filers have and (b)]. However, until recently, some foreign reporting companies in calendar year 2001, had been able to submit their securities documents in issuer filings could not be made on EDGAR due to electronically formatted their financial statements either HTML or ASCII. See Release No. 33–7684 the lack of corresponding electronic form types. As and other material information for posting on their (May 17, 1999) [64 FR 27888]. Since May 30, 2000, of April 8, 2002, programming for these form types web sites or for their sovereign securities EDGAR filers have been able to submit HTML has been completed so that foreign issuers may now commission or other authorities. See Part IV of this documents that include graphic and image files and voluntarily file these forms electronically. release for further discussion. Continued

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Investors have also come to expect document required as an exhibit or annual report to security holders, or an electronic access to financial and other attachment to a filing; attached ‘‘statutory’’ report under business information about public • The requirement that an officer or specified circumstances, as discussed companies, regardless of their country official of an issuer, whether foreign or below; 30 of origin, and to financial information domestic, certify in writing that an • Form CB if the filer is not an about foreign governments.22 Because of English translation is a fair and accurate Exchange Act reporting company; 31 and these developments, we believe that the one; • Reports that specified supranational time is right to adopt rules mandating • The proposed mandated EDGAR entities, such as the World Bank, must EDGAR filing for foreign issuers. filing of Form 6–K reports except for file with the Commission.32 Form 6–K reports submitted to furnish The adopted amendments will also: 33 B. Comments Received • a foreign issuer’s annual report to Continue to require documents On September 28, 2001, we proposed security holders; submitted under Exchange Act Rule rule amendments that would require • 12g3–2(b) to be in paper only; and The proposed four month transition • foreign private issuers 23 and foreign period; and Eliminate the requirement that a governments 24 to file their securities • Whether the Commission should domestic or foreign filer must submit a 34 documents with the Commission on expand its EDGAR filing hours beyond paper copy of its first electronic filing. EDGAR.25 We received 32 comment the current 8:00 A.M. to 10:00 P.M. ET We adopted the following principal letters in response to our proposed rule period.27 changes to the proposed rules at the request of commenters: amendments mandating EDGAR filing • for foreign issuers.26 Many commenters C. Summary of the Amendments We have amended both the expressed general approval of the Most of the rule amendments are electronic and paper filing rules to proposal. Several of these commenters adopted as proposed. For example, most permit the use of an English summary agreed that foreign issuers, investors, of the same Securities Act and Exchange for specified categories of foreign and members of the financial Act forms that were the subject of language documents included in community would reap the same mandated EDGAR filing under the Division of Corporation Finance filings and submissions instead of requiring an benefits from these rules as those proposed rules will be the subject of achieved by mandated filing for English translation for all foreign mandated EDGAR filing under the 35 domestic issuers. The benefits cited language documents. adopted rules as well. However, we • We have adopted a rule that were the more rapid dissemination of have responded to a number of information about, facilitation of provides guidance regarding what comments and made significant changes constitutes an acceptable English research and data analysis concerning, to the proposed requirements. 36 and increased market exposure for the summary. The adopted amendments will require • We have eliminated the proposed securities of foreign issuers. the electronic filing of: However, a number of commenters • written certification requirement Foreign private issuers’ Securities regarding the fairness and accuracy of also expressed concern about one or Act registration statements and more aspects of the proposed an English translation for both foreign Exchange Act registration statements and domestic filers.37 amendments. The issues that generated and reports, including Form 6–K except the most discussion were: 28 • as discussed below; 30 New Regulation S–T Rules 101(b)(1) and The proposed elimination of the • Foreign governments’ Securities Act 101(b)(7) [17 CFR 232.101(b)(1) and 101(b)(7)]. See option to provide an English summary registration statements and Exchange also Part II.B.2, below. or version in lieu of a full English Act registration statements and reports; 31 New Regulation S–T Rule 101(b)(8) [17 CFR translation of a foreign language • 232.101(b)(8)]. Multijurisdictional Disclosure 32 New Regulation S–T Rule 101(b)(6) [17 CFR System (‘‘MJDS’’) forms and schedules 232.101(b)(6)]. expanded use of hyperlinks. See Release No. 33– 33 To lessen paperwork burdens for national 7855 (April 24, 2000) [65 FR 24788]. filed by Canadian issuers; • securities exchanges, the amendments will also 22 Statements of beneficial ownership See Release No. 33–8016, 34–44868 (September permit national securities exchanges to file Form 25 28, 2001) [66 FR 50744] (‘‘Proposing Release’’), Part on Schedules 13D and 13G and tender (‘‘Notification of the Removal From Listing and I.B, the text surrounding n. 34, for further offer schedules that pertain to the Registration of Matured, Redeemed or Retired discussion of information about foreign securities of a foreign issuer, whether Securities’’) [17 CFR 249.25] via the EDGAR system governments that is currently available on the filed by a foreign or domestic person; on a voluntary basis. See new Regulation S–T Rule Internet. • 101(b)(10) [17 CFR 232.101(b)(10)] and new 23 ‘‘Foreign private issuer’’ is defined in Securities Form CB, the form used for cross- Regulation S–T Rule 101(c)(9)]. Currently, Act Rule 405 [17 CFR 230.405] and Exchange Act border rights offers, exchange offers and Regulation S–T requires the filing of Form 25 with Rule 3b–4 [17 CFR 240.3b–4]. business combinations that are exempt the Commission in paper format only. See the 24 ‘‘Foreign government’’ refers to any issuer that from the tender offer rules or Securities current version of Regulation S–T Rule 101(c)(9). is eligible to register securities under Schedule B of 34 Regulation S–T Rule 101(d) [17 CFR the Securities Act, including political subdivisions Act registration, if the filer is an 232.101(d)] currently codifies this paper filing and some quasi-governmental entities. Exchange Act reporting company; 29 and requirement for first-time EDGAR filers. The 25 See Proposing Release. • Most Trust Indenture Act forms. adopted amendments will remove this provision in 26 Because three of the letters each represented The adopted amendments will permit its entirety. 35 multiple entities, the 32 comment letters either the electronic or paper filing of: New Regulation S–T Rule 306(a) [17 CFR represented a total of 57 distinct entities, including • 232.306(a)], new Securities Act Rule 403(c)(3) [17 24 corporations, 12 financial printers and filing A Form 6–K report if the sole CFR 230.403(c)(3)], and new Exchange Act Rule agents, 10 law firms and one individual attorney, purpose of the Form 6–K is to submit 12b–12(d)(3)]. We have also amended Form 6–K to four accounting and consulting firms, three banks, the foreign private issuer’s attached specify further which foreign language documents and three professional associations. These comment require the submission of an English translation and letters and a summary of comments (‘‘Comment which may be the subject of an English summary. 27 Summary’’) prepared by our staff are available for We solicited comment on the adequacy of the New paragraph D of the General Instructions to public inspection in our Public Reference Room, current EDGAR filing hours without making a Form 6–K. 450 Fifth Street, NW, Washington, DC 20549, in specific proposal about them. See the Proposing 36 New Regulation S–T Rule 306(a), new File No. S7–18–01. Public comments submitted Release at Part II.C. Securities Act Rule 403(c)(3)(ii) [17 CFR electronically are also available on our web site 28 New Regulation S–T Rule 100(a) and (c) [17 230.403(c)(3)(ii)], and new Exchange Act Rule 12b– located at http:/www.sec.gov/rules/proposed/ CFR 232.100(a) and (c)]. 12(d)(3)(ii) [17 CFR 240.12b–12(d)(3)(ii)]. s71801/shtml. The Comment Summary is also 29 New Regulation S–T Rule 101(a)(vi) [17 CFR 37 Regulation S–T Rule 306(a) currently provides available on our web site. 232.101(a)(vi)]. for this written certification requirement.

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• We are permitting the submission of Currently Regulation S–T Rules 100 and Upon the effectiveness of these the unabridged foreign language 601 are the provisions that exclude amendments, mandated EDGAR filing document in paper to accompany an foreign private issuers and foreign will apply to a foreign issuer’s English summary or translation or when governments from the Commission’s documents filed or submitted under the permitted by the applicable form; electronic filing requirements. The Securities Act and Exchange Act unless • We are permitting either the amendments will eliminate the foreign otherwise provided by Regulation S–T. electronic or paper submission of a issuer exception primarily by revising Moreover, because these amendments ‘‘statutory’’ report, as discussed below, Rules 100(a) and (c) and removing Rule will generally subject foreign private or other document by a foreign private 601 in its entirety. The amendments issuers and foreign governments to issuer under cover of Form 6–K as long will: Regulation S–T’s electronic filing as the report or other document is not • Revise Rule 100(a) by removing the requirements, both domestic and foreign a press release, is not required to be and phrase ‘‘except for foreign private entities will have to file on EDGAR any has not been distributed to the foreign issuers and foreign governments’’ to joint or third party filing that relates to private issuer’s security holders, and, if state that Regulation S–T applies to all a foreign issuer.45 discussing a material event, including registrants whose filings are subject to the disclosure of annual audited or review by the Division of Corporation B. Foreign Issuer Forms and Documents interim consolidated financial results, Finance; 42 Under the Amendments has already been the subject of a Form • Eliminate the phrase ‘‘foreign 1. Securities Act Registration Statements 6–K submission or other Commission private issuers and foreign and Exchange Act Registration filing on EDGAR.38 governments’’ in Rule 100(c) to clarify Statements and Annual Reports of • We have amended Form 6–K to that mandated electronic filing applies Foreign Private Issuers to any party that files a document clarify that a foreign private issuer is not As proposed, the adopted jointly with, or as a third party filer with required to submit under cover of Form amendments will require foreign private respect to, a registrant that is subject to 6–K an offering circular or prospectus issuers 46 to file electronically their mandated electronic filing; 43 and that pertains solely to a foreign offering, Securities Act registration statements on • Eliminate as unnecessary Rule 601 even when an English translation or Forms F–1, F–2, F–3, and F–4,47 and in its entirety since the adopted English summary is available, if the their Exchange Act registration amendments will generally extend issuer has already submitted on EDGAR statements and annual reports on Form electronic filing requirements to foreign a Form 6–K, Form 20–F, or other 20–F. The amendments also will private issuers and foreign governments, Commission filing that reported mandate the filing on EDGAR, as and since we have programmed the material information disclosed in the proposed, of Form F–6,48 the Securities 39 EDGAR system to provide an electronic offering circular or prospectus. Act registration statement pertaining to • form type for any foreign form that We are permitting an MJDS filer to depositary shares evidenced by currently lacks one.44 include in an electronic filing that is an American Depositary Receipts HTML document both French and (‘‘ADRs’’). English text in an exhibit to or part of that is the subject of mandated EDGAR. Regulation S–T Rule 101(a)(1) [17 CFR 232.101(a)(1)]. These Two commenters opposed extending a registration statement, annual report, materials are not disseminated publicly but are EDGAR filing requirements to Form F– or tender offer schedule if the filer available to the Commission staff. 6 registration statements. Both stated included the French text to comply with 42 Rule 100(a) currently provides that the that the Form F–6 registration statement the requirements of the Canadian electronic filing requirements of Regulation S–T contains little issuer information and securities administrator or other apply to ‘‘[r]egistrants whose filings are subject to review by the Division of Corporation Finance principally consists of the attached 40 Canadian authority. except for foreign private issuers and foreign depositary agreement, which tends to be In addition, in response to governments.’’ fairly standard from one registration commenters who urged a transition 43 17 CFR 232.100(c). Rule 100(c) currently statement to the next. Consequently, period longer than the proposed four provides that the electronic filing requirements of Regulation S–T apply to ‘‘[a]ny party (including according to these commenters, months, we are providing a transition natural persons, foreign private issuers and foreign mandated EDGAR filing would increase period of almost six months. The rules governments) that files a document jointly with, or the preparation costs of depositaries and will take effect on Monday, November 4, as a third party filer with respect to a registrant that foreign private issuers while yielding 2002. is subject to mandated electronic filing requirements.’’ For example, a foreign issuer named little benefit to investors. II. Discussion as a guarantor and co-registrant on a registration We disagree with this conclusion. statement that pertains to a domestic issuer must While the Form F–6 registration A. Amendments to Regulation S–T currently file the registration statement and related statement may principally consist of the Sections 100 and 601 documents on EDGAR. 44 Rule 601(a) currently excepts foreign private depositary agreement, this document is We are adopting as proposed the issuers and foreign governments from the mandated the governing instrument that sets forth amendments to Regulation S–T that will EDGAR filing rules unless the foreign issuer is filing the rights of ADR holders concerning generally require foreign private issuers a document jointly with, or with respect to, a party that is the subject of mandated electronic filing. 45 and foreign governments to file their Rule 601(b) [17 CFR 232.601(b)] provides that a See Part II.B.5 below. 46 Securities Act and Exchange Act foreign private issuer or foreign government may See Part II.B.4 below for a discussion of MJDS documents with us on EDGAR.41 choose to file electronically any document not forms. required to be filed under Regulation S–T as long 47 Foreign persons may also register securities on as the EDGAR Filer Manual contains an appropriate Form S–8 [17 CFR 239.16b] and S–11 [17 CFR 38 New Regulation S–T Rule 101(b)(7). electronic form type. Rule 601(c) [17 CFR 239.18] as well as on other registration statement 39 New paragraph D of the General Instructions to 232.601(c)] provides that if a foreign private issuer forms normally used by U.S. issuers. Mandated Form 6–K. engages in an exchange offer, merger or other EDGAR filing applies to these registration 40 New Regulation S–T Rule 306(a), new business combination with a domestic registrant, statements when filed by foreign issuers. Securities Act Rule 403(c)(5) [17 CFR 230.403(c)(5)], and the foreign private issuer files a Securities Act 48 Because Regulation S–T Rule 101(c)(15) [17 and new Exchange Act Rule 12b–12(d)(6) [17 CFR registration statement regarding this transaction, the CFR 232.101(c)(15)] currently lists Form F–6 as a 240.12b–12(d)(6)]. foreign private issuer may file this registration form to be filed in paper only, the adopted 41 Regulation S–T also requires the electronic statement in paper as long as the domestic amendments will remove this provision and filing of any related correspondence and registrant will not be subject to Exchange Act renumber the remaining provisions in Rule 101(c) supplemental information pertaining to a document reporting requirements following the transaction. accordingly.

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voting, receipt of dividends and other the draft materials and other related material information that the foreign distributions, and deposit and correspondence.51 The electronic filing issuer: withdrawal of shares, and other material of this correspondence with Division • Makes public or is required to make information such as the ratio of ordinary staff will facilitate further staff analysis public under the laws of its home shares to ADRs and the amount of and review of the foreign issuer’s country; depositary fees. Mandated EDGAR filing registration statements and reports filed • Files or is required to file with its of the Form F–6 registration statement with the Commission. home country stock exchange and will ensure the expeditious which is made public by that exchange; dissemination of this material 2. Form 6–K Reports or information to investors and other The adopted rule amendments will • Distributes or is required to interested parties. require the electronic submission of distribute to its security holders.56 We are revising the General most reports on Form 6–K,52 the According to these commenters, Instructions to the Securities Act forms Exchange Act form used by foreign because of their home country and Form 20–F to reference Regulation issuers to submit periodic and current regulations and customs, during any S–T and provide Commission telephone reports with the Commission.53 As given year, most foreign issuers submit numbers that a foreign private issuer proposed, a foreign issuer will be able numerous Form 6–K reports, only some may call to obtain EDGAR access codes to submit in paper a Form 6–K with its of which are the equivalent of the or to obtain assistance with EDGAR annual report to security holders domestic company Form 10–Q reports technical concerns or EDGAR rules.49 attached as an exhibit if the sole that disclose interim financial The Division of Corporation Finance purpose of the Form 6–K was to deposit information. Because foreign issuers (‘‘Division’’) currently permits first-time a copy of this report with the must submit these home country foreign registrants, upon request, to Commission.54 We are also adopting ‘‘statutory’’ reports and other documents submit paper drafts of their initial another exception to mandated EDGAR on Form 6–K promptly after they are 57 Securities Act or Exchange Act filing of Form 6–K in response to made public in the home country, registration statements for staff review comments received on this issue. these commenters believe that there is on a non-public basis.50 Although we We have amended Form 6–K to not enough preparation or ‘‘lead’’ time did not discuss this policy in the permit a foreign issuer to submit a home to translate these documents into Proposing Release, we received four country report or other document in English or prepare them for EDGAR comment letters that addressed the paper under cover of a Form 6–K as long submission. We believe that the issue. All four urged the Division to as the report or other document: additional exception described above continue its policy following the new • Is not a press release; will substantially address this concern rules’ effective date. • Is not required to be and has not and assist in reducing a foreign issuer’s In response to the above comments, been distributed to the foreign issuer’s EDGAR costs while ensuring the rapid the mandated electronic filing rules for security holders; and dissemination of all material foreign issuers will not affect the • If discussing a material event, information about a foreign issuer in Division’s confidential submission including disclosure of annual audited U.S. capital markets. policy. Confidential submissions under or interim consolidated financial We are also amending Form 6–K to the policy must be in paper format. results, has already been the subject of provide a box for each of the permitted When a foreign issuer later publicly files a Form 6–K submission or other paper filing rules that a foreign issuer its registration statement under the Commission filing on EDGAR.55 must check in order to facilitate the Securities Act or the Exchange Act, the We added this exception in response processing of the paper Form 6–K. The public filing must be in electronic to comments noting that a foreign issuer amended Form 6–K further references format. At that time, the Division also must submit a Form 6–K to report the requirements of Regulation S–T and will require a foreign issuer to file in provides telephone numbers that a electronic format as correspondence all 51 Domestic issuers submit responses to comment foreign issuer may call for assistance 58 letters in response to staff comments on letters electronically on an ongoing basis. Materials concerning EDGAR. electronically furnished as correspondence become 3. Securities Act Registration Statements 49 part of a non-public database to which only the See the new General Instruction II.C to Forms and Exchange Act Registration F–1 and F–2, new General Instruction II.D to Form Commission’s staff has access unless the materials F–3, new General Instruction II.4 to Form F–4, new become subject to a successful request under the Statements and Reports of Foreign General Instruction III.C to Form F–6, and new Freedom of Information Act. See 17 CFR 200.80. Governments General Instruction D to Form 20–F. We have also 52 We have added a note to Regulation S–T Rule slightly modified the General Instructions to Forms 101(a)(1)(iii) [17 CFR 101(a)(1)(iii)], which generally The amendments will require foreign F–6 and 20–F to clarify that the pre-existing mandates EDGAR filing for Exchange Act governments to file on EDGAR their paragraphs that outline requirements concerning documents, to clarify that foreign private issuers Securities Act registration statements on number of copies, paper, printing, or pagination, must file or submit their Form 6–K reports in Schedule B.59 Foreign governments will pertain solely to paper filings under hardship electronic format, except as otherwise permitted by exemptions or as otherwise permitted. See also new Regulation S–T Rules 101(b)(1) and 101(b)(7). Regulation S–T Rule 309(a) [17 CFR 232.309(a)]. We 53 In addition to an annual report, Exchange Act 56 See General Instruction B to Form 6–K. have referenced the signature requirements for both reporting foreign companies must submit to the SEC 57 See the third paragraph of the current Form 6– electronic and paper filings in General Instruction on an ongoing basis, under cover of a Form 6–K, K General Instruction B. D to Form 20–F. We also have revised each of the press releases, shareholder reports and other 58 As discussed in Part II.C.2 below, we are above forms to include a new instruction regarding materials that contain information that is material further amending Form 6–K to explain the newly the treatment of foreign language documents. See to an investment decision. See Form 6–K, General amended rules concerning the treatment of foreign Part II.C.7, below. Instruction B. Foreign companies publish these language documents. We also are amending Form 50 See the Division of Corporation Finance’s materials in their home countries in accordance 6–K to provide that an issuer that is or will be (‘‘Division’s’’) Current Issues and Rulemaking with home market law or custom. By requiring incorporating by reference all or part of an annual Projects Quarterly Update, Section V (March 31, foreign companies to file most Form 6–Ks on or other report to security holders, or of a paper 2001), which is located at www. sec.gov/divisions/ EDGAR, we will improve public access to these Form 6–K, into an electronic filing must file the corpfin/cfcrq032001.htm. See also the Division’s home market materials as well as all SEC-mandated incorporated portion in electronic format as an International Financial Reporting and Disclosure reports, prospectuses and other documents. exhibit to the filing in accordance with new Issues, Section III(B) (May 1, 2001), which is 54 See new Regulation S–T Rule 101(b)(1). Regulation S–T Rule 303(b) [17 CFR 232.303(b)]. available at www.sec.gov./divisions/corpfin/ 55 See new Regulation S–T Rule 101(b)(7) and the See Part II.B.10, below. internatl/issues0501.htm. revised General Instruction C to Form 6–K. 59 15 U.S.C. 77a et seq., Schedule B.

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further have to file electronically their information regarding issuers that file to file on EDGAR their Schedules TO 65 Exchange Act registration statements on electronically with the SEC; and with respect to tender offers for Form 18, their annual reports on Form • The foreign filer must disclose the securities of foreign private issuers. 18–K, and any amendments to these address for the SEC Internet site at Foreign private issuers that are subject Forms.60 (http://www.sec.gov).62 to tender offers, whether by domestic or Two commenters opposed extending The instruction will also encourage the foreign companies, will have to file their mandated EDGAR filing to foreign foreign filer to provide its own Internet Schedules 14D–9 66 on EDGAR. 63 governments primarily on the grounds address, if available. 6. Form CB that, because of language barriers, time zone differences, and cumbersome 4. Multijurisdictional Disclosure System Form CB is an exemptive form that internal approval procedures, foreign (‘‘MJDS’’) Forms both foreign and domestic persons must governments face logistical and other The adopted amendments will apply file when engaging in specified rights difficulties in meeting their disclosure to MJDS filers as proposed. Under the offerings, exchange offers or business and reporting obligations under the U.S. new rule amendments, Canadian issuers combinations with respect to a foreign federal securities laws. One of the that choose to use the MJDS must file private issuer.67 We proposed to require commenters also noted that foreign electronically: the EDGAR submission of Form CB 68 in governments have no experience in • Their Securities Act registration two instances: filing on EDGAR since they have not statements on Forms F–7, F–8, F–9, F– • If the party filing or submitting the been able to do so even voluntarily. 10, and F–80; Form CB is an Exchange Act reporting Accordingly, these two commenters • Their Exchange Act registration company; or urged the Commission to permit but not statements and annual reports on Form • If the foreign company that is the require foreign governments to file their 40–F; and subject of the Form CB transaction is an securities documents on EDGAR. • Schedules 13E–4F, 14D–1F and Exchange Act reporting company.69 After considering these comments, we 14D–9F, the tender offer forms under Most commenters that addressed this have determined to adopt mandated the MJDS.64 proposal urged that we generally permit EDGAR filing for foreign governments as rather than require the EDGAR filing of 5. Schedules 13D and 13G and Tender Form CB in order to encourage the use proposed. We do not believe that the Offer Schedules cited difficulties faced by foreign of the Form CB and the consequent governments are significantly different Adopted as proposed, the participation of U.S. security holders in than those that foreign private issuers amendments will mandate the filing on a cross-border transaction. After may face when preparing their EDGAR of third party forms, whether considering these comments, we have Securities Act and Exchange Act filed by a domestic or foreign company, determined to require EDGAR filing for documents for filing with the that pertain to a foreign private issuer, Form CB only when the party filing or Commission. Moreover, the same since a third party filer will no longer submitting the Form CB is an Exchange technological advances discussed above be able to claim an EDGAR exemption Act reporting company. In most should serve to reduce the costs of based on the underlying EDGAR instances the party filing or submitting EDGAR as much for foreign exemption for foreign private issuers. the Form CB will be the issuer, acquiror governments as for foreign private Thus, domestic or foreign persons will or bidder in the Form CB transaction. In issuers. In addition, other have to file on EDGAR their Schedules some instances, however, the subject accommodations for foreign issuers 13D or 13G that pertain to the securities company of an exchange offer, business adopted or discussed in this release of foreign private issuers. Similarly, combination, or tender offer may elect should further serve to diminish any domestic and foreign bidders will have to file or submit the Form CB in difficulties confronted by foreign conjunction with or on behalf of the governments. 62 New Securities Act Rule 493(b) and (c) [17 CFR acquiror or bidder. In any of these 230.493(b) and (c)]. As discussed in greater detail We are also adopting, as proposed, a instances, because the filer will already in the Proposing Release, Part II.E, the adopted be familiar with EDGAR filing requirement that a foreign government electronic filing instruction is substantially similar provide the following ‘‘electronic filing’’ to that on Forms F–2, F–3, and F–4, each of which requirements, mandating the filing or information in its Schedule B permits a filer to incorporate by reference other submission of the Form CB on EDGAR securities documents or exhibits into the registration statement: 61 should not pose an undue burden. registration statement. Regulation S–K Rule 101(e) The amendments, as adopted, will • The foreign filer must state that the [17 CFR 229.101(e)] further requires a registrant to also provide that a party that is not an SEC maintains an Internet site that provide this electronic filing information in any Exchange Act reporting company may at contains reports, statements and other Securities Act registration statement. Since Regulation S–K [17 CFR 229.10–229.1016] generally its option file or submit the Form CB on does not apply to foreign issuers, and since there 60 17 CFR 249.218 and 249.318. is no form that corresponds to the Schedule B 65 17 CFR 240.14d–100. 61 The required electronic filing instruction serves registration statement, we have revised Rule 493 to 66 to inform an investor about the location of a foreign provide for this electronic filing instruction. The 17 CFR 240.14d–101. issuer’s electronic filings with the Commission and adopted rule will also reference Regulation S–T’s 67 See Securities Act Rules 801(a)(4) and 802(a)(3) possibly of a foreign issuer’s web address as well. electronic filing requirements. [17 CFR 230.801(a)(4) and 230.802(a)(3)] and This information is particularly useful when a filer 63 New Securities Act Rule 493(c). See the Exchange Act Rules 13e–4(h)(8)(iii), 14d–1(c)(3)(iii), incorporates documents by reference into a Commission’s interpretive release entitled ‘‘Use of and 14e–2(d) [17 CFR 240.13e–4(h)(8)(iii), 240.14d– registration statement. Because there is no form for Electronic Media,’’ Release No. 33–7856 (April 28, 1(c)(3)(iii), and 240.14e–2(d)]. a Schedule B registration statement, Division staff 2000) [65 FR 25843] for guidance on matters arising 68 Similar to our treatment of Form 6–K reports has outlined procedures for a Schedule B filer that from the use of hyperlinks in connection with (see Form 6–K General Instruction B), our rules seeks to incorporate by reference. A Schedule B securities documents posted on an issuer’s web site. currently treat information and documents filer that seeks to incorporate by reference must 64 We have amended the MJDS forms to reference furnished under Form CB as not ‘‘filed’’ with the follow the staff’s procedures outlined in a no-action Regulation S–T and to add conforming instructions Commission or otherwise subject to the liabilities letter that relates specifically to that filer. See, for similar to those added to the other Securities Act of Exchange Act Section 18 [15 U.S.C. 78r]. See example, the following no-action letters: Province of registration statements and Exchange Act Form 20– Form CB General Instructions I.B. The proposed Nova Scotia (November 1, 1999); Republic of F. See also Parts II.C.6 and 7 below for revisions to amendments would not alter this treatment. Turkey (October 19, 1999); and Republic of South the MJDS forms concerning the treatment of foreign 69 See Proposing Release, Part II.B.4, discussing Africa (October 4, 1999). language documents. proposed Regulation S–T Rule 101(a)(1)(vi).

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EDGAR.70 A company that a party that is not an Exchange Act supranational entities, the International electronically files a Form CB, whether company.75 Bank for Reconstruction and as a voluntary or mandated electronic The second Form F–X exception Development (‘‘World Bank’’), to file on filer, must file on EDGAR the home pertains to the requirement that a EDGAR its annual and periodic reports jurisdiction documents that are attached Canadian issuer submit a Form F–X and its reports concerning proposed to the Form CB as well. when qualifying an offering statement distributions of its primary We are amending the cover page of pursuant to the provisions of Regulation obligations.84 As proposed, we are Form CB to require a filer to indicate A.76 Because Regulation S–T currently extending permissive electronic filing to whether it is filing the Form CB in paper requires the submission of Regulation A the following five additional as permitted by the newly adopted rule. filings in paper only, the adopted supranational entities that are also This will facilitate the proper processing amendments will permit a Canadian required to file reports with the of Form CB.71 Regulation A filer to submit the required Commission: 85 77 • 7. Forms F–X and F–N Form F–X in paper. The Inter-American Development As with Form CB, we are amending Bank; 86 The amendments also will require Form F–X to require the filer to indicate • The Asian Development Bank; 87 that foreign private issuers file whether it is filing the Form F–X in • The African Development Bank; 88 electronically, as proposed, two paper as permitted by the new rule • The International Finance auxiliary forms, Forms F–X and F–N. amendments. This will facilitate the Corporation; 89 and • Form F–X is the form for designating a proper processing of the Form F–X. The European Bank for U.S. agent for service of process that is Reconstruction and Development.90 required for an MJDS filer and specified 8. Trust Indenture Act Forms 10. Exhibits Incorporated by Reference other foreign filers.72 Form F–N is the The amendments, adopted as form for designating a U.S. agent for proposed, will require the filing on As proposed, the adopted service of process by foreign banks and EDGAR of the following statements and amendments will afford to foreign filers foreign insurance companies when they applications regarding trustee eligibility the same treatment given to domestic file registration statements under the and indenture qualification 78 under the filers regarding exhibits under Rule 102 Securities Act.73 Trust Indenture Act:79 of Regulation S–T.91 We currently do There are two exceptions to the • Forms T–1 and T–2 80 statements of not require a domestic filer to file electronic filing requirement adopted trustee eligibility if submitted in electronically an exhibit previously for Form F–X. The first pertains to connection with an indenture for which filed in paper that is being incorporated foreign issuers that must file Form F–X a foreign issuer is the obligor; by reference into the electronically filed because they are Form CB filers. Since • Form T–3 81 to qualify an indenture document. As under the current rules, a the amendments only require the filing covering a foreign issuer’s securities foreign filer may voluntarily refile the or submission of Form CB on EDGAR sold in offerings that are exempt from exhibit on EDGAR.92 Upon amending its when the filer is an Exchange Act registration under the Securities Act; 82 articles of incorporation or bylaws, a reporting company, we have adopted and foreign filer will have to restate these the same requirement for the Form F– • Form T–6 83 used by foreign documents in electronic format.93 X that a foreign company must file along corporations and other foreign business We are also adopting the amendment with a Form CB.74 The amendments entities to obtain authorization to act as to Regulation S–T Rule 303(b),94 which permit, but do not require, the filing or a sole trustee under an indenture provides that if a foreign private issuer submission of Form F–X on EDGAR by qualified or to be qualified under the incorporates by reference into an Trust Indenture Act. 70 New Regulation S–T Rule 101(b)(8) [17 CFR 84 Regulation S–T Rule 101(b)(6) [17 CFR 232.101(b)(8)]. 9. Reports of Supranational Entities 232.101(b)(6)]. The World Bank must submit these 71 Similar to our amendments of other Securities reports under the Rules and Regulations Pursuant Act and Exchange Act forms, we also are amending We proposed to permit, but not to Section 15(a) of the Bretton Woods Agreements Form CB to reflect the new EDGAR filing rules. The require, the submission on EDGAR of Act [17 CFR 285] and, in particular, 17 CFR 285.2 revisions to Form CB include clarifying that the the reports that designated and 285.3. instructions pertaining to number of copies, supranational entities are required to 85 New Regulation S–T Rule 232.101(b)(6)(i) printing, pagination, and manual signatures apply file with the Commission. Currently through (vi) [17 CFR 232.101(b)(6)(i) through solely to paper filings. For additional revisions to 232.101(b)(6)(vi)]. Form CB concerning the treatment of foreign Regulation S–T permits only one of the 86 See General Rules and Regulations Pursuant to language documents, see Part II.C.7 below. Section 11(a) of the Inter-American Development 72 In addition to an MJDS filer, the following 75 New Regulation S–T Rule 101(b)(9)(i) [17 CFR Bank Act [17 CFR 286]. persons must file a Form F–X: a non-U.S. person 232.101(b)(9)(i).] 87 See General Rules and Regulations Pursuant to filing tender offer documents on Schedule 13E–4F, 76 17 CFR 239.42(f) and 17 CFR 230.263(a). Section 11(a) of the Asian Development Bank Act 14D–1F, or 14D–9F; a foreign trustee regarding 77 New Regulation S–T Rule 101(b)(9)(ii) [17 CFR [17 CFR 287]. securities registered on an MJDS Securities Act 232.101(b)(9)(ii)]. 88 See General Rules and Regulations Pursuant to registration statement; a Canadian issuer filing an 78 Section 9(a) of the African Development Bank Act offering statement under Regulation A [17 CFR Regulation S–T Rule 101(a)(1)(ii) [17 CFR [17 CFR 288]. 230.251–230.263] or a Form SB–2 registration 232.101(a)(1)(ii)]. 89 statement [17 CFR 239.10]; and a foreign issuer or 79 15 U.S.C. 77aaa et seq. In contrast, Regulation See General Rules and Regulations Pursuant to other non-U.S. person filing Form CB in connection S–T Rule 101(c)(5) [17 CFR 232.101(c)(5)] currently Section 13(a) of the International Finance with a tender offer, rights offering or business requires the filing on paper of applications for Corporation Act [17 CFR 289]. combination. See 17 CFR 239.42(d), (e), (f), and (g). exemptive relief pursuant to Sections 304 and 310 90 See General Rules and Regulations Pursuant to In addition, under the Trust Indenture Act, of the Trust Indenture Act 15 U.S.C. 77ddd and Section 9(a) of the European Bank for specified Canadian trust companies acting as 77jjj, respectively]. This provision applies to both Reconstruction and Development Act [17 CFR 290]. trustees under an indenture qualified or to be domestic and foreign filers and will remain the 91 17 CFR 232.102. qualified under the Trust Indenture Act must file same under the adopted amendments. 92 Rule 102(a) of Regulation S–T [17 CFR a Form F–X with the Commission. Trust Indenture 80 17 CFR 269.1 and 269.2. 232.102(a)]. Act Rule 260.10a–5(b) [17 CFR 260.10a–5(b)]. 81 17 CFR 269.3. 93 This is consistent with the treatment of 73 Securities Act Rule 489 [17 CFR 230.489]. 82 Rule 7a–1 [17 CFR 260.7a–1] under Trust domestic issuers. Regulation S–T Rule 102(c) [17 74 New Regulation S–T Rules 101(a)(vii) [17 CFR Indenture Act Section 307(a) [15 U.S.C. 77ggg] CFR 232.102(c)]. 232.101(a)(vii)] and 101(b)(9) [17 CFR authorizes the use of Form T–3. 94 New Regulation S–T Rule 303(b) [17 CFR 232.101(b)(9)]. 83 17 CFR 269.9. 232.303(b)].

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electronic filing any portion of an applications and supporting documents foreign issuers filing or submitting their annual or other report to security for the exemption pursuant to Exchange securities documents on EDGAR to Rule holders, or of a paper Form 6–K, it must Act Rule 12g3–2(b).100 While two 306’s English translation requirement file the incorporated portion in commenters favored either permissive and prohibition against foreign language electronic format as an exhibit to the or mandated EDGAR filing of these documents. We further proposed to filing. Again, this comports with the documents, we continue to believe that eliminate the option of providing an treatment afforded to domestic a ‘‘paper filing only’’ rule for Exchange English summary or version instead of companies.95 A foreign private issuer Act Rule 12g3–2(b) documents is the an English translation of a foreign should consider this provision when correct approach. A foreign company language document under the paper determining whether to submit a Form that has received a Rule 12g3–2(b) filing rules in order to keep the 6–K report in paper. exemption is afforded only limited electronic and paper requirements access to U.S. capital markets. It also is consistent.104 11. Hardship Exemptions not subject to the Commission’s We received the largest number of The adopted amendments do not alter disclosure requirements for Exchange comments on this proposed treatment of the provisions governing the availability Act reporting companies. Consequently, foreign language documents of all the of hardship exemptions under there is less need for electronic access issues raised by the proposing release. Regulation S–T, as proposed. A foreign to the submissions that a Rule 12g3–2(b) Nineteen commenters generally issuer that meets the requirements of company must make to the Commission opposed the elimination of the English Section 201 or 202 of Regulation S–T 96 in order to maintain its exempt status. summary or version option on the may obtain a temporary or continuing This treatment is consistent with, and grounds that the costs of translating into hardship exemption from the EDGAR analogous to, our current treatment of English every foreign language filing requirements.97 applications for an exemption from document required as an exhibit or As is the case with domestic filers, we Exchange Act reporting obligations filed attachment to a filing would be expect to grant hardship exemptions for pursuant to Exchange Act Section excessive and constitute an undue foreign issuers infrequently.98 12(h).101 Accordingly, the adopted burden on foreign issuers. Several of Moreover, as is the case with domestic amendments, as proposed, will not these commenters also stated that the filers, our filing desk will not accept in affect Exchange Act Rule 12g3–2(b) elimination of the English summary or paper format any filing submitted by a submissions. version option would cause delays in foreign issuer that must be filed the completion, and preclude the timely electronically pursuant to Regulation S– C. Treatment of Foreign Language Documents filing, of registration statements and T Items 100 and 101 unless the filing reports. satisfies the requirements for a Regulation S–T Rule 306 governs the However, many of these commenters temporary or continuing hardship treatment of foreign language also agreed with our position that, as exemption under Regulation S–T.99 documents for electronic filings. This reflected in current Commission rule currently prohibits the filing of practice, some exhibits are too 12. Documents Submitted Pursuant to foreign language documents in Exchange Act Rule 12g3–2(b) important to be the subject of an English electronic format. It also requires the summary or version. Most of these We proposed to continue our current electronic submission of a fair and commenters urged us to adopt a rule practice of requiring foreign private accurate English translation of any that would codify this position by issuers to submit on paper their document, required as an exhibit or specifying those documents that could attachment to a filing, that is in a foreign and could not be the subject of an 95 102 See the current version of Regulation S–T Rule language. Thus, under Rule 306, an English summary or version. Several of 303(b) and Note 2 of General Instruction G to the electronic filer currently does not have Form 10–K annual report. We are adding a similar these commenters also agreed with our Note to Form 6–K. the option afforded to paper filers of examples of exhibit categories that are 96 17 CFR 232.201 or 232.202. An EDGAR filer submitting an English summary or too important to be the subject of an may obtain a temporary hardship exemption if it ‘‘version’’ of a foreign language English summary or version. experiences unanticipated technical difficulties that document instead of an English prevent the timely preparation and submission of translation.103 The proposed 1. The Adopted ‘‘English Summary’’ an electronic filing. See 17 CFR 232.201(a). An Option EDGAR filer may apply for a continuing hardship amendments would have subjected exemption if it cannot file all or part of a filing After consideration of the above without undue burden or expense. See 17 CFR 100 17 CFR 240.12g3–2(b). This rule provides an comments, we have determined to adopt 232.202(a). exemption from Section 12(g) of the Exchange Act a limited English summary option for 97 A filer obtains a temporary hardship exemption [15 U.S.C. 78l(g)] for foreign private issuers that by filing a properly legended paper copy of the have not chosen to access the U.S. capital markets. Division of Corporation Finance filings filing under cover of Form TH pursuant to After providing the Commission with information and submissions that is the same for Regulation S–T Rule 201. In contrast to this self- about its home country disclosure requirements and both electronic and paper filers and executing process, a filer can only obtain a U.S. shareholder information, a qualifying applicant provides guidance on which exhibits continuing hardship exemption by submitting a receives an exemption from Exchange Act reporting written application pursuant to Regulation S–T upon the condition that it furnish to the may be summarized. We are amending Rule 202, upon which the Commission staff must Commission on an ongoing basis its securities Regulation S–T Rule 306(a) to provide then act pursuant to delegated authority. documents required to be furnished or that it that all electronic filings or submissions 98 In addition to pursuing a hardship exemption, furnishes voluntarily in its home country. must be in the English language, except 101 15 U.S.C. 78l(h). We require the filing of a filer that has in good faith attempted to submit 105 a filing in a timely manner but has experienced a Section 12(h) exemptive applications in paper as otherwise provided by this rule. delay due to technical conditions beyond its control pursuant to Regulation S–T Rule 101(c)(17) [17 CFR We are further amending this rule to may request a filing date adjustment pursuant to 232.101(c)(17)]. Although the basis for Exchange provide that if a filing or submission Regulation S–T Rule 13(b) [17 CFR 232.13(b)]. Act Rule 12g3–2(b) is Exchange Act Section 12(g)(3) requires the inclusion of a document 99 [15 U.S.C. 78l(g)(3)], this statutory section is Rule 14 of Regulation S–T [17 CFR 232.14]. We that is in a foreign language, a party have amended Forms 6–K, CB, and F–X to state that analogous to Exchange Act Section 12(h). if filing the form under a hardship exemption, the 102 Regulation S–T Rule 306(a) [17 CFR filer must include the legend required by 232.306(a)]. 104 See Proposing Release, Parts II.D.1 and 2 for Regulation S–T Rule 201 or 202 on the form’s cover 103 See current Securities Act Rule 403(c) and a discussion of, and reasons for, this proposal. page. Exchange Act Rule 12b–12(d). 105 New Regulation S–T Rule 306(a).

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must submit a fair and accurate English that agreements falling into these These conditions are consistent with translation of the foreign language categories should not be summarized. current staff practice.116 document in accordance with the rules While a filer may provide a detailed Under these amendments, electronic governing the treatment of foreign summary of these contracts in the body and paper filers must provide either an language documents.106 The amended of the registration statement or report, English translation or English summary, rule further provides that, alternatively, their importance requires the filing or if permitted, of a foreign language if the foreign language document is an submission of a corresponding full document. A filer will no longer be able exhibit or attachment to a filing or English translation as an exhibit to to provide an English ‘‘version’’ or submission to the Division of which an investor or other interested something that falls short of being a fair Corporation Finance, a party may party can refer for further information. and accurate English summary as provide a fair and accurate English We have narrowed the scope of one required by the above rules. Although summary of the foreign language exhibit category on the ‘‘mandatory some commenters requested that we document if permitted by the foreign English translation’’ list in response to retain the English ‘‘version’’ option, we language rules.107 comments. In the proposing release, we have decided to eliminate it because of We also are amending the foreign included exhibits containing financial the vagueness of the term ‘‘version’’ and language rules to provide that a Division statements on this list.112 Although the general lack of utility that has of Corporation Finance filer must not some commenters agreed with us, others characterized those abbreviated English summarize the following documents pointed out that some ‘‘statutory report’’ ‘‘versions’’ of foreign language (and their amendments):108 exhibits may contain unconsolidated documents that foreign issuers have • Articles of incorporation, financial information about a parent occasionally submitted.117 memoranda of association, bylaws, and company that is of questionable 2. The Amended Form 6–K other comparable documents, whether materiality. These comments have original or restated; persuaded us to require the English Under the proposed amendments, a • Instruments defining the rights of translation only of exhibits disclosing foreign private issuer would have to security holders, including indentures annual audited or interim consolidated provide an English translation of any qualified or to be qualified under the financial information. This requirement report or other document that was in a Trust Indenture Act of 1939; will ensure that investors have foreign language and required to be • Voting agreements, including voting electronic access to full English submitted under Form 6–K whether in trust agreements; translations of financial information electronic or paper format. Some • Contracts to which directors, about foreign issuers that is comparable commenters objected to this proposal officers, promoters, voting trustees or to the financial information required by because it would eliminate a foreign security holders named in a registration domestic issuers in their periodic issuer’s ability to submit under Form 6– statement are parties; reports. K: • Contracts upon which a filer’s We are further amending the foreign • An English summary or version of business is substantially dependent; language rules to provide that a Division a foreign language press release or • Audited annual and interim of Corporation Finance filer may submit communication distributed directly to consolidated financial information; and an English summary instead of an shareholders; and • Any document that is or will be the English translation of a foreign language • A brief description of any other subject of a confidential treatment document as an exhibit or attachment to foreign language report or document, request under Securities Act Rule a filing as long as the foreign language such as a statutory report or an offering 406 109 or Exchange Act Rule 24b–2.110 document does not consist of any of the circular or prospectus relating solely to This list largely comprises the proscribed subject matter enumerated in an offering outside the United States (a examples of important foreign language these rules 113 or the applicable form ‘‘foreign’’ offering), if no English documents mentioned in the proposing permits the use of an English language translation, summary or release. However, we have added to this summary.114 These rules will also version is available.118 list two categories of material contract provide that any English summary Noting that a foreign issuer typically exhibits: contracts upon which a filer’s submitted must: submits several Form 6–Ks annually, business is substantially dependent and • Fairly and accurately summarize these commenters expressed concern related party contracts.111 We believe the terms of each material provision of that an ‘‘English translation only’’ the foreign language document; and requirement would cause a foreign 106 Securities Act Rule 403(c) and Exchange Act • Fairly and accurately describe the issuer to incur excessive translation Rule 12b–12(d) (referred to as the ‘‘foreign language terms that have been omitted or expenses and delay the filing of a Form rules’’). The sole exception relates to the treatment 115 of a foreign government’s annual budget. See new abridged. 6–K. Accordingly, these commenters Regulation S–T Rule 306(c) and Part II.C.5, below, requested that we retain the current for further discussion. categories of contracts have the same meaning as version of Form 6–K’s instructions 107 Accordingly, we will continue to require the contracts described in the above Form 20–F regarding the treatment of foreign investment companies and other persons making exhibit instructions. language documents in their entirety. filings or submissions to the Division of Investment 112 See Proposing Release, Part II.D.2., the text Management to submit full English translations of following n.111. foreign language prospectuses or other foreign 113 New Securities Act Rule 403(c)(2) and 116 See, for example, Telephone Interpretation No. language documents included in their filings or Exchange Act Rule 12b–12(d)(2). M.6. in the Division of Corporation Finance Manual submissions. 114 New Securities Act Rule 403(c)(3)(i) [17 CFR of Publicly Available Telephone Interpretations 108 New Securities Act Rule 403(c)(2) [17 CFR 230.403(c)(2)(i)] and new Exchange Act Rule 12b– (July 1997), which is available on our web site 230.403(c)(1)] and new Exchange Act Rule 12b– 12(d)(3)(i) [17 CFR 240.12b–12(d)(2)(i)]. located at http://www.sec.gov/interps/telephone/ 1997manual.txt. This telephone interpretation 12(d)(2) [17 CFR 240.12b–12(d)(1)]. 115 New Securities Act Rule 403(c)(3)(ii) and new 109 provides that an English summary must summarize 17 CFR 230.406. Exchange Act Rule 12b–12(d)(3)(ii). A filer will also each section of an exhibit just as an English 110 17 CFR 240.24b–2. have to identify a submission as either an English translation must translate each section. 111 See Form 20–F Exhibit Instructions 4(b)(i) and summary or English translation of a foreign 117 (ii), respectively, for a description of related party language document. New Securities Act Rule We discussed these reasons in Proposing contracts and substantial dependency contracts. As 403(c)(4) [17 CFR 230.403(c)(4)] and new Exchange Release, Part II.D.2, the text following n.110. used in the foreign language rules, these two Act Rule 12b–12(d)(4) [17 CFR 240.12b–12(d)(4)]. 118 Current General Instruction D to Form 6–K.

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However, we received other under cover of a Form 6–K,121 whether ‘‘English version’’ option.124 Moreover, comments that distinguished between submitted electronically or in paper, an the above revisions to Form 6–K should types of documents regularly submitted English summary instead of a full eliminate much of the previous need for under Form 6–K. For example, one English translation of a report required the ‘‘brief description’’ option while foreign firm stated that, because press to be furnished and made public under providing useful information, since a releases are typically short and are the laws of the issuer’s home country or foreign private issuer will only have to already made available in English by the rules of the issuer’s home country submit an English summary of that many foreign private issuers as a matter stock exchange, so long as it is not a portion of a foreign offering circular or of course, it would not object to a press release and is not required to be statutory report that contains new requirement to provide a full English and has not been distributed to the material information instead of the translation for a press release submitted issuer’s security holders. Such a entire document. under Form 6–K. Another commenter document may include a report 3. Submission of Unabridged Foreign noted the important distinction that disclosing unconsolidated financial Language Documents General Instruction D made between information about a parent company.122 press releases and direct shareholder A few commenters expressed their We solicited comment on whether we communications on the one hand, and concern that, by eliminating the should enable a foreign issuer to submit statutory reports and other ‘‘public ‘‘English summary, version or brief a paper copy of the unabridged foreign information’’ documents on the other, description’’ option, we would be language document under cover of Form when urging us to require the EDGAR requiring the full English translation of SE when electronically filing an English submission of the former but not the offering circulars or prospectuses that summary of the document. Several latter category of documents. pertained solely to foreign offerings. In commenters supported this option, After considering these comments, we response to these comments, we are noting the legal importance of the have determined to retain the English further amending Form 6–K General unabridged foreign language version. summary option for some of the Instruction D to clarify that a foreign Accordingly, we are amending documents submitted under Form 6–K. private issuer is not required to submit Regulation S–T Rule 306 to provide that Therefore, we are amending Form 6–K under cover of Form 6–K an offering a party may at its option submit a paper General Instruction D to provide that a circular or prospectus that pertains copy of the unabridged foreign language foreign private issuer must submit a full solely to a foreign offering, even when document under cover of Form SE when English translation of the following an English translation or English electronically submitting an English summary is available, if the issuer has summary or English translation of that documents under Form 6–K whether 125 submitted electronically or in paper: 119 already submitted a Form 6–K, Form document. We also encourage filers to put these foreign language documents • 20–F or other Commission filing on Press releases; on their own corporate web sites in • EDGAR that reported material Communications and other information disclosed in the offering order for this information to be readily documents distributed directly to circular or prospectus. If an issuer has available to public investors. However, security holders for each class of not previously submitted such a filing, the filing or submission of an securities for which a reporting the issuer may submit in electronic unabridged foreign language document obligation under the Exchange Act format under a Form 6–K an English with the Commission or the posting of exists, except for offering circulars and translation or English summary of the this document on a company’s web site prospectuses that relate entirely to portion of the foreign offering circular or will not correct an incomplete or foreign offerings; and prospectus that discloses new material inaccurate English summary or • Documents disclosing annual information.123 translation included in an EDGAR filing audited or interim consolidated Under the adopted amendments, a or submission. 120 financial information. foreign private issuer may no longer 4. Elimination of Written Representation We have included direct shareholder submit a brief description of a foreign Requirement communications in the ‘‘English language document under cover of Form Regulation S–T Rule 306 currently translation only’’ group of documents 6–K. We have determined to eliminate requires a designated officer of an because when a foreign company the ‘‘brief description’’ option for the electronic filer to certify in writing that determines to communicate with its same reasons that we are eliminating the a filed English translation is a fair and shareholders, the communication is accurate translation of a foreign presumably of sufficient importance to 121 This is in addition to the documents specified language document.126 We proposed to warrant requiring electronic access to in Exchange Act Rule 12b–12(d)(2) [17 CFR that document. Moreover, like press 240.12b–12(d)(2)]. 122 Under the newly revised Form 6–K, a parent 124 See Part II.C.1 above, the text preceding n. releases, a foreign private issuer will foreign private issuer will be able to submit in 117. more likely than not prepare an English paper an English summary of a statutory report that 125 New Regulation S–T Rule 306(b) [17 CFR translation of direct shareholder contains, for example, unconsolidated financial 232.306(b)]. We are also amending Regulation S–T communications for its U.S. information, as long as it has already electronically Rule 311, which governs the use of Form SE, to submitted a press release disclosing any new, reflect this amendment. New Regulation S–T Rule shareholders as a matter of course. material information contained in the statutory 311(f) [17 CFR 232.311(f)]. We are further amending New Instruction D to Form 6–K report. See new Regulation S–T Rule 101(b)(7) and Securities Act Rule 403(c) and Exchange Act Rule further permits an issuer to furnish new General Instruction C to Form 6–K. 12b–12(d) to permit a paper filer to submit a copy 123 New General Instruction D to Form 6–K. For of the unabridged foreign language document along example, if a foreign issuer making a foreign with an English summary or English translation. 119 This is in addition to the list of documents offering that is material uses an offering circular New Securities Act Rule 403(c)(4) [17 CFR specified in Exchange Act Rule 12b–12(d)(2). containing material information about the issuer 230.403(c)(4)] and new Exchange Act Rule 12b– 120 See the new General Instruction D to the Form that is reflected in an already filed Form 20–F or 12(d)(4) [17 CFR 240.12b–12(d)(4)]. Finally, as 6–K attached to this release. We have listed annual Form 6–K, the issuer could submit on Form 6–K a proposed, we are amending the above paper filing audited and interim consolidated financial summary of the offering. This instruction further rules and Regulation S–T Rule 306 to state that a information on Form 6–K even though it is also provides that any submitted English summary filer must provide a copy of any foreign language listed under Exchange Act Rule 12b–12(d)(2) for under Form 6–K must meet the requirements of document upon the request of Commission staff. ease of use. Exchange Act Rule 12b–12(d)(3)(ii). 126 Current Regulation S–T Rule 306(a).

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extend this written representation Form SE,129 so that any interested party 7. Conforming Amendments to requirement to foreign issuers filing may examine it, as proposed.130 Securities Act and Exchange Act Forms electronically as well as to any paper 6. Permitted Inclusion of French and In order to reflect the amended filing that included an English English Text in MJDS Forms treatment of foreign language translation exhibit or attachment. documents, we are amending the Some commenters generally Ten commenters opposed this Securities Act and Exchange Act forms expressed their interest in being able to proposal, primarily on the grounds that by adding explanatory paragraphs file foreign language documents on stating that: the written representation requirement EDGAR.131 One commenter requested • is unnecessary because of the signature The registration statement or report that we at least permit the filing on must be in the English language, as requirements and liability provisions EDGAR of a document that contains required by the foreign language rules under the Securities Act and the provisions in both English and a foreign discussed above; Exchange Act. We generally agree with language when the home country • If the registration statement or these commenters and are eliminating requires a document to be prepared in report requires the inclusion, as an the written representation requirement both languages. exhibit or attachment, of a document for both foreign and domestic issuers, Currently EDGAR official filings can that is in a foreign language, the issuer whether filing electronically or in only use foreign language characters must provide instead either an English paper.127 The antifraud and signature that are recognized by HTML version translation or an English summary of provisions of the Securities Act and 3.2.132 At this time we have determined the foreign language document in Exchange Act should afford sufficient to permit the use of a foreign language accordance with the foreign language deterrence and protection against the in an electronic filing only when a rules; and making of misleading and fraudulent Canadian issuer includes in an MJDS • The issuer may submit a copy of the misrepresentations in securities filing that is electronically formatted as unabridged foreign language document documents as a result of false or an HTML document both French and along with the English translation or misleadingly incomplete translations or English text because this dual language English summary as permitted by the 134 summaries of foreign language use is necessary to comply with the foreign language rules. We are similarly amending the MJDS documents.128 Of course, we expect requirements of the Canadian securities forms and schedules 135 by inserting foreign and domestic issuers and their administrator or other Canadian authority. This limited acceptance of comparable explanatory paragraphs.136 advisors to continue to be responsible Form CB currently permits the for translations and to take adequate foreign language text in EDGAR documents meets the demands of the submission of English summaries of steps to assure the accuracy of documents that, under the home translations to their satisfaction. MJDS system, which permits qualified Canadian issuers to use their home jurisdiction requirements, must be made 5. Submission of a Foreign country securities documents to meet public but need not be disseminated to 137 Government’s Annual Budget U.S. disclosure and reporting security holders. It also requires the requirements. Accordingly, we are furnishing to the Commission of any As proposed, newly adopted adopting an amendment to Regulation documents incorporated by reference Regulation S–T Rule 306 will continue S–T Rule 306 to permit the electronic into the home jurisdiction 138 to require a foreign government or its filing of a document containing both documents. The issuer, acquiror, political subdivision to file French and English text in this case.133 bidder or subject company submitting electronically a fair and accurate the Form CB need not publicly disseminate the incorporated English translation of its latest annual 129 Accordingly, we are amending Rule 311 to 139 budget as Exhibit B in Form 18 or allow the paper filing of the foreign language documents to security holders. While Exhibit (c) in Form 18–K, but only if an annual budget exhibit under cover of Form SE. New the home jurisdiction documents that Regulation S–T Rule 311(h) [17 CFR 232.311(h)]. English translation is available. If an are disseminated to security holders We are further amending Exchange Act Rule 12b– must be in English, documents that are English translation is not available, the 12(d)(5) to require the submission of the foreign adopted amendment will require a language annual budget exhibit with a paper filing when no English translation is available. New 134 See new General Instructions II.D. to Forms F– foreign government or political Exchange Act Rule 12b–12(d)(5) [17 CFR 240.12b– 1 and F–2, new General Instruction II.E. to Form F– subdivision to submit a copy of the 12(d)(4)]. 3, new General Instruction D.5. to Form F–4, new foreign language version of its latest 130 New Regulation S–T Rule 306(c). As explained General Instruction D. and Instructions as to annual budget in paper under cover of in the Proposing Release, Form 18–K instructs a Exhibits to Form 20–F, and General Instruction D foreign government to submit its annual budget in to Form 6–K. the foreign language if no English translation is 135 See new General Instruction II.G. to Form F– available. Form 18–K, Exhibit Instructions, 7, new General Instruction IV.I. to Form F–8, new paragraph (c) as discussed in Proposing Release, General Instructions II. I to Forms F–9 and F–80, Part II.D.1., the text accompanying n. 104. new General Instruction II.J. to Form F–10, new 131 For the most part, these commenters urged us General Instruction II.E. to Schedules 13E–4F and to permit the filing of foreign language documents 14D–1F, and new General Instruction II.C. to in PDF. Others requested that we permit the Schedule 14D–9F. submission of unabridged foreign language 136 Unlike the other Securities Act and Exchange 127 New Regulation S–T Rule 306(a), new documents in paper under specified circumstances. Act documents, the MJDS instructions state that a Securities Act Rule 403(c), and new Exchange Act See Part II.C.3 above. filer may provide an English translation or 132 summary of a foreign language document if Rule 12b–12(d). See current Regulation S–T Rule 306(b). See permitted by the rules of the applicable Canadian 128 The primary antifraud provisions are in also Release No. 33–7855. 133 securities adminsitrator. Since the Canadian Securities Act Sections 11, 12(a)(2), 15, and 17 [15 New Regulation S–T Rule 306(d) [17 CFR 230.306(d)]. We also are adopting conforming requirements govern most of the form and content U.S.C. 77k, 77l(a)(2), 77o, and 77q] and Exchange amendments to the corresponding Securities Act of the MJDS documents, we have determined that Act Sections 10, 18, and 20 [15 U.S.C. 78j, 78r, and and Exchange Act rules in order to permit the same the Canadian rules should govern the treatment of 78t]. The primary signature provisions are in dual language use in MJDS documents filed in foreign language documents as well. Securities Act Section 6(a) [15 U.S.C. 77f(a)] and in paper. New Securities Act Rule 403(c)(5) [17 CFR 137 Form CB, Part II(1). Securities Act Rule 402(e), Exchange Act Rule 12b– 230.403(c)(5)] and new Exchange Act Rule 12b– 138 Form CB, Part II (2). 11(d), and Regulation S–T Rule 302. 12(d)(6) [17 CFR 240.12b–12(d)(6)]. 139 Form CB, Part I, Item 1(a).

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incorporated by reference into the home date until their registration statements seven days a week, or to 24 hours a day, jurisdiction documents may be in a are effective.145 One commenter Monday through Friday. Other foreign language.140 opposed this proposal on the grounds commenters requested that we extend We are amending Form CB to conform that a registrant filing in paper before EDGAR’s filing hours by at least a few it to the adopted rules concerning the the rules’ effective date should have an hours. Most of these commenters treatment of foreign language indefinite period in which to complete justified extended EDGAR filing hours documents. We are also amending its paper filing. While we do not believe on the grounds that the business hours Regulation S–T Rule 311 to provide that that an indefinite period of time is of many foreign issuers overlap a party may submit a copy of an justified, we have determined to permit minimally or not at all with the EDGAR unabridged foreign language document a registrant filing its registration filing hours. under cover of Form SE if permitted by statement in paper before the rules’ In consideration of these comments, the applicable form as well as when effective date to complete its filing in we are currently assessing the feasibility submitting an English translation or paper through Tuesday, December 31, of extending the EDGAR filing hours for summary.141 This amendment will 2002. If the registration statement direct transmission filings. While we are enable the paper submission of a foreign becomes effective before then, a filer aware that many foreign issuers use the language document that has been could also file in paper its prospectus assistance of filing agents based in the incorporated by reference into an submitted pursuant to Securities Act United States to submit their filings in electronically submitted Form CB or Rule 430A 146 or Rule 424 147 through a timely fashion, we also understand that is the subject of an English December 31, 2002. However, on or after that this option may not be as readily summary permitted by Form CB.142 Wednesday, January 1, 2003, a registrant available to other foreign issuers. We will have to file any amendment, hope in the future to address further the D. Transition Period whether pre-effective or post-effective, issue of extending the EDGAR filing We proposed that the amendments or prospectus supplement in electronic hours as part of our ongoing efforts to would become effective for filings or format. improve the EDGAR system. submissions made four months from E. The Commission’s Electronic Filing F. Elimination of the Paper Filing their date of adoption. Eleven Hours commenters responded that this four Requirement for First-Time EDGAR month transition period was too short. The Commission currently accepts Filers In response to these comments, we have EDGAR filings by direct transmission As part of an ongoing assessment of determined to adopt an effective date of from 8:00 a.m. until 10:00 p.m. Eastern some technical aspects of the EDGAR Monday, November 4, 2002. The new Standard Time or Eastern Daylight rules and the EDGAR system, we have rule amendments will apply to any Saving Time, whichever is in effect, determined to eliminate the requirement securities documents filed or submitted every day except for Saturdays, Sundays that an EDGAR filer must submit a 148 on or after November 4, 2002. We and federal holidays. In contrast, paper copy of its first electronic filing to believe that approximately six months is paper and magnetic cartridge filings the Commission.152 It appears that this 149 a more than sufficient period to enable must be submitted by 5:30 p.m. Most requirement imposes an expense upon a foreign issuer to prepare itself to use EDGAR filings submitted by direct EDGAR filers without yielding any the EDGAR system and electronically transmission after 5:30 p.m. receive the tangible benefits. Therefore, upon the format a document for the foreign next day’s date as the official date of publication of the rule amendments in 150 issuer’s first EDGAR submission or hire filing. the Federal Register, a first-time EDGAR a filing agent to conduct or assist in the Although we did not propose to filer, whether domestic or foreign, will change the Commission’s filing hours EDGAR submission.143 We encourage not have to submit a paper copy of its for electronic filings made by direct foreign issuers to file their securities EDGAR filing.153 documents voluntarily during the transmission, we solicited comment III. Paperwork Reduction Act Analysis transition period or to submit test filings regarding the adequacy of the Commission’s EDGAR filing hours.151 during this period.144 The amendments contain ‘‘collection We also proposed to permit We received eleven comment letters that of information’’ requirements within the registrants that have filed their requested us to extend EDGAR’s filing meaning of the Paperwork Reduction registration statements in paper before hours. Eight of these commenters the proposed rules’ effective date to requested that we extend the EDGAR 152 This requirement is set forth in Regulation S– continue to file their pre-effective filing hours either to 24 hours a day, T Rule 101(d) [17 CFR 232.101(d)]. 153 The rule amendments will remove Regulation amendments in paper for a limited 145 See Proposing Release, Part II.H. S–T Rule 101(d) in its entirety. This amendment period of time, for example, one month, 146 17 CFR 230.430A. will become effective on the date of publication in the Federal Register. Under the Administrative following the proposed rules’ effective 147 17 CFR 230.424. Procedure Act (‘‘APA’’), notice of proposed 148 Regulation S–T Rule 12(c) [17 CFR 232.12(c)]. rulemaking is not required for ‘‘rules of agency 140 Compare Part I, Item 1(a) with Part II (2). See also Securities Act Rule 110(c) [17 CFR * * * procedure.’’ 5 U.S.C. 553(b)(A). The 141 New Regulation S–T Rule 311(f). 230.110(c)] and Exchange Act Rule 0–2(c) [17 CFR requirement that an EDGAR filer submit a paper 142 See the New Note following Part II (2) of Form 240.0–2(c)]. copy of its first electronic filing to the Commission CB and new Part II(1) of Form CB. 149 Regulation S–T Rule 12(b) [17 CFR 232.12(b)]. was solely for the Commission’s benefit. Under the 143 The effective date of the new rules will occur See also Securities Act Rule 110(b) [17 CFR APA, the Commission may establish an effective over one year and one month from the date that we 230.110(b)] and Exchange Act Rule 0–2(b) [17 CFR date of less than 30 days after the publication of the first proposed them on September 28, 2001. Foreign 240.0–2(b)]. amendments if the amendment ‘‘relieves a issuers have had since the proposing date to begin 150 Regulation S–T Rule 13(a)(2) [17 CFR restriction.’’ 5 U.S.C. 553(d)(1). Since eliminating learning about the EDGAR requirements. The length 232.13(a)(2)]. The one exception pertains to filings the requirement of a paper filing ‘‘relieves a of time that will have elapsed between the dates of made pursuant to Securities Act Rule 462(b) [17 restriction,’’ the amendment is effective upon the proposing and adopting releases reinforces our CFR 230.462(b)], which automatically become publication in the Federal Register. For similar view that the six month transition period is effective upon filing. If made between 5:30 p.m. and reasons, we are adopting new Regulation S–T Rules sufficient. 10 p.m., these Rule 462(b) filings are deemed filed 101(b)(10) and 101(c)(9), which concern the 144 See Section 5.11.4 of the EDGAR Filer Manual on the same business day. See Regulation S–T Rule voluntary EDGAR filing of Form 25, without notice (Release 8.2), Volume I for further information 13(a)(3) [17 CFR 232.13(a)(3)]. and comment. These rules are also effective upon about test filings on EDGAR. 151 Proposing Release, Part II.C. publication in the Federal Register.

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Act of 1995 (‘‘PRA’’).154 We published on these information collections estimate of the number of registrants a notice requesting comment on the primarily on our review of actual filings (five from the previously estimated collection of information requirements of these forms, the forms’ requirements, seven) that will incur additional burden in the Proposing Release, and submitted and on the most recently completed hours and costs for services pertaining these requirements to the Office of Paperwork Reduction Act submissions to translating into English either all or Management and Budget (‘‘OMB’’) for for these forms. An agency may not some of a foreign language document for review.155 Subsequently, OMB conduct or sponsor, and a person is not submission as either an English approved the proposed information required to respond to, a collection of translation or English summary exhibit collection requirements. information unless it displays a instead of an English ‘‘version’’ or ‘‘brief As discussed in Part II above, we currently valid control number. description.’’ Second, we have received several comment letters Form F–1 (OMB Control No. 3235– decreased by 12 our estimate of the regarding the proposed amendments. 0258) is used by a foreign private issuer number of additional burden hours (36 We have revised the amendments in to register its initial public offering or a hours from the previously estimated 48 response to these comments. In subsequent offering of securities under hours) that each of the five registrants particular, the adopted amendments the Securities Act. In addition to will incur when preparing English permit the submission of an English requiring the disclosure of material translations or English summaries in summary of specified foreign language information about the registrant, Form accordance with the adopted documents whereas the proposed F–1 also requires the attachment of amendments (for a total of 180 amendments would have required a full numerous exhibits, including copies of additional burden hours instead of the English translation of any foreign the registrant’s memoranda of 336 hours previously estimated). We language document required to be association, articles of incorporation, continue to expect that registrants will submitted as an exhibit or attachment to and material contracts. incur 25% of these additional burden Securities Act and Exchange Act Form 20–F (OMB Control No. 3235– hours (45 hours instead of the 156 forms. We are revising our previous 0288) is used by a foreign private issuer previously estimated 84 hours). Third, burden estimates primarily because of both to register a class of securities we have decreased by 5 the number of this change. We are submitting the under the Exchange Act as well as to additional pages per filing (13 pages revised estimates to the OMB for provide its annual report required under compared to the previously estimated approval. the Exchange Act. Like the Form F–1, 18 pages) that each registrant must The titles of the information Form 20–F also requires the filing of translate at a cost of $75 per page. We collections affected by the proposed numerous exhibits. continue to expect that outside firms amendments were the EDGAR Forms ID, will account for 75% of the translation 157 Form 6–K (OMB Control No. 3235– ET, SE and TH, Securities Act Form 0116) is used by a foreign private issuer costs resulting in $3656 of costs F–1,158 and Exchange Act Form 20– to report material information that it: attributable to outside firms (rather than F.159 The changes made to the proposed • Makes or is required to make public the previously estimated $7,091). amendments do not alter the burden under the laws of the jurisdiction of its Regarding Form 20–F, we have estimates for Forms ID, ET, SE and TH incorporation, domicile or organization decreased by 174 hours the total annual previously submitted to and approved (its ‘‘home country’’); burden incurred by foreign private by the OMB.160 The changes do affect • Files or is required to file with its issuers in the preparation of a Form 20– the burden estimates for Securities Act F to 501,763 hours (from the previously home country stock exchange that is Form F–1 and Exchange Act Form 20– estimated 501,937 hours). We further made public by that exchange; or F. In addition, because several have decreased by $16,341 the total • Distributes or is required to commenters stated that the elimination annual costs attributed to the distribute to its security holders. of the ‘‘English version or brief preparation of the Form 20–F by outside description’’ requirement would A foreign private issuer may attach firms to $263,194,113 (from the increase their burdens when submitting annual reports to security holders, previously estimated $263,210,454). statutory reports and other documents statutory reports, press releases and We have derived these estimates from under cover of Form 6–K, we have other documents as exhibits or the following revised assumptions. prepared and are submitting burden attachments to the Form 6–K. First, while our estimate of the number estimates for this information collection As a result of the adopted English (58) of foreign private issuers affected by to the OMB as well. summary provision described above, the the amendments remains the same, we We have based our estimates of the reporting and cost burden estimates for have decreased by 12 our estimate of the effects that the amendments will have Forms F–1 and 20–F have changed. number of additional burden hours (36 Accordingly, we have revised the hours from the previously estimated 48 154 44 U.S.C. 3501 et seq. estimated information collection hours) that each of the affected issuers 155 Publication and submission were in requirements that we initially submitted will incur when preparing English accordance with 44 U.S.C. § 3507(d) and 5 CFR to the OMB. Regarding Form F–1, we 1320.11. translations or English summaries in 156 The adopted amendments still eliminate the have decreased by 39 hours our estimate accordance with the adopted ‘‘English version’’ option under Securities Act Rule of the total annual burden incurred by amendments (for a total of 2088 403(c) and Exchange Act Rule 12b–12(d), as registrants in the preparation of a Form additional burden hours instead of the proposed. They also still eliminate the ‘‘brief F–1 to 65,880 hours (from the 2784 hours previously estimated). We description’’ option in General Instruction D to Form 6–K, as proposed. previously estimated 65,919 hours). We continue to expect that foreign private 157 17 CFR 239.63, 239.62, 239.64 and 239.65. also have decreased by $3435 the total issuers will incur 25% of these These forms are also promulgated as Exchange Act annual costs attributed to the additional burden hours (522 hours forms under 17 CFR 249.446, 249.444, 249.445, and preparation of a Form F–1 by outside instead of the previously estimated 696 249.447. firms to $34,567,031 (from the hours). Second, we have decreased by 158 17 CFR 239.31. previously estimated $34,570,466). five the number of additional pages per 159 17 CFR 249.220f. 160 See Proposing Release, Part V for a description We have derived these estimates from filing (13 pages compared to the of and the burden estimates for Forms ID, ET, SE the following revised assumptions. previously estimated 18 pages) that each and TH. First, we have decreased by two our issuer must translate at a cost of $75 per

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page. We continue to expect that outside collection techniques or other forms of quantify the costs and value of the firms will account for 75% of the information technology. Finally, we benefits identified.163 We received 19 translation costs resulting in $42,413 of solicit comment on whether the comment letters that expressed general costs attributable to outside firms (rather amendments will have any effects on approval of the proposed amendments than the previously estimated $58,754). any other collection of information not because of the benefits expected to Regarding Form 6–K, we estimate that previously identified in this section. result from them. Several of these the amendments will cause an increase If you would like to submit comments commenters agreed that the expected of 2477 burden hours resulting in a total on the collection of information benefits would be the same as those of 25,477 hours (from the previous requirements and expected effects, achieved by mandated EDGAR filing for 23,000 hours). We further estimate that please direct them to the Office of domestic issuers as described in the the adopted amendments will cause Management and Budget, Attention: Proposing Release. None of these foreign private issuers to incur an Desk Officer for the Securities and commenters provided data to quantify aggregate increase of $165,150 in Exchange Commission, Office of the value of the benefits identified. translation costs when preparing an Information and Regulatory Affairs, Most of the commenters expressed English translation or summary exhibit Washington, D.C. 20503. You should concern about specific aspects of the for a Form 6–K, resulting in total costs also send a copy of the comments to proposed amendments because of their of $12,240,150 (compared to the Jonathan G. Katz, Secretary, Securities expected costs that, according to these previous $12,075,000). and Exchange Commission, 450 Fifth commenters, would pose an undue We have based our Form 6–K Street, NW, Washington, DC 20549– burden on foreign issuers.164 The estimates on the following assumptions. 0609, with reference to File No. S7–18– aspects that received the most First, we have increased the number of 01. Requests for materials submitted to expressions of concern were: • Form 6–K responses by 3161 to 14,661 OMB by the Commission with regard to The proposed elimination of the 161 (from the previous 11,500). Second, these collections of information should ‘‘English summary or version’’ option we estimate that 367 of the total number be in writing, refer to File No. S7–18– that would require both an electronic of Form 6–Ks filed or submitted would 01, and be submitted to the Securities and paper filer to provide a full English incur additional English translation and Exchange Commission, Records translation of a foreign language expenses as a result of the amendments. Management, Office of Filings and document required as an exhibit or Third, we estimate that for each of the Information Services, 450 Fifth Street other attachment to a filing or affected Form 6–K filings or submission; and NW, Washington, DC 20549. OMB must • submissions, there will occur an make a decision concerning the affected The proposed mandated EDGAR submission of all Form 6–K reports additional 27 burden hours. We collections of information between 30 other than the Form 6–K submitted to continue to expect that issuers will and 60 days after publication of this deposit a foreign private issuer’s incur 25% of these additional burden release. Consequently, in order to attached annual report to security hours, resulting in 2477 additional ensure that your comments achieve holders. burden hours for the Form 6–K their fullest effect, you should submit respondents. Finally, we expect that Only three of these commenters comments to OMB within 30 days of provided data to quantify the costs each affected issuer will have to this release’s publication. translate an additional 8 pages at a cost identified.165 All of the data provided of $75 per page. We continue to expect IV. Cost-Benefit Analysis concerned the expected costs that would result from the proposed outside firms to incur 75% of these A. Background English translation costs, resulting in an elimination of the option to provide an additional $165,150 of costs attributable In the Proposing Release, we stated English summary or version of a foreign to outside firms. our expectation that the proposal would language document. One commenter We are soliciting comment on the achieve the same benefits for investors, noted that the elimination of this option expected Paperwork Reduction Act foreign issuers and others realized when would cause a foreign issuer to incur effects of the adopted amendments. In we adopted the mandated EDGAR filing additional English translation costs particular, we solicit comment on the system for domestic filers in 1993. We ranging from $2,250 to $4,375 for each accuracy of our additional burden hour further noted that we excluded foreign 50 page document, such as a material and cost estimates expected to result filers from mandated EDGAR filing in contract, depending on the level of from the adopted amendments. We 1993 because we believed that they difficulty of the foreign language further request comment on whether the would incur higher costs from the required to be translated.166 Another expected effects of the amendments implementation of EDGAR than those commenter stated that elimination of discussed in this section are necessary faced by domestic filers. As we the ‘‘English summary’’ option would for the proper performance of the explained, since then significant Commission’s functions, including technological advances have occurred 163 Proposing Release, Part III.C. whether the additional information that, together with the recent 164 Of the 26 commenters that expressed such modernization of EDGAR, should concerns, 14 also noted the benefits that would garnered will have practical utility. In result from the adoption of the proposal. addition, we solicit comment on reduce EDGAR costs for foreign filers. 165 Comment Summary at Part III.B.3. whether there are ways to enhance the Because of these developments, we 166 This commenter further stated that, for each quality, utility, and clarity of the believe that it is now appropriate to foreign language document required to be translated information to be collected. We further include foreign filers in our mandated because of the proposed amendments, a foreign EDGAR system.162 issuer would have to pay a bilingual attorney to solicit comment on whether there are proofread the translated document since ways to minimize the burden of We solicited comment on the professional translators generally lack the legal or information collection on those foreign expected benefits and costs and on any technical expertise to understand much of the text filers who will file the above forms, others that could result from adoption of that they are asked to translate. Although we EDGAR filing requirements for foreign believe that many foreign companies rely on in- including through the use of automated house counsel to perform at least some of this issuers. We also requested data to review, according to this commenter, the cost of 161 14,661 is the number of Form 6–Ks filed in this legal layer of review would exceed the cost of calendar 2001. 162 Proposing Release, Part III. the translation services themselves in most cases.

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cause it to incur $5,800 to translate each Several commenters also expressed and disseminate more rapidly quarterly or annual report to security concern regarding our proposed information about reporting foreign holders and an additional $100,000 to mandated EDGAR filing of Form CB issuers. As a result, not only should an translate a foreign offering circular. One when either the filer or the subject investor be able to form more efficient other commenter stated that it would company of the Form CB transaction is investment decisions about particular incur approximately $200,000 and take an Exchange Act reporting company. foreign issuers, but foreign issuers two to three months to obtain English These commenters noted that, because should benefit from increased market translations of Japanese language this proposal would require the EDGAR exposure for their securities in the statutory reports and other documents submission of a Form CB by a foreign United States. that it currently does not translate. filer that was not an Exchange Act Foreign issuers should further benefit In response to these comments, we reporting company if the subject from the increased efficiencies in the have reconsidered and revised the company was an Exchange Act filing process resulting from the adopted aspects of our rule proposal that have reporting company, it would discourage amendments. By electronically generated the most concern. In the use of the Form CB. Because we transmitting their securities documents particular, we have: found merit in these comments, we have directly to the Commission, foreign • Amended both the electronic and revised our rule amendment to require issuers will avoid the uncertainties and paper filing rules to permit the use of an the electronic filing of a Form CB only delays that can occur with the manual English summary for some foreign when the filer is an Exchange Act delivery of paper filings. Foreign issuers language documents instead of requiring reporting company, regardless of the also will benefit from no longer having an English translation for all foreign reporting status of the subject to submit multiple copies of paper language documents; 167 company.172 documents to the Commission. Foreign • Eliminated the written certification The above revisions address most of issuers will further benefit from the requirement regarding the fairness and the cost concerns expressed by the Commission’s longer filing hours for the accuracy of an English translation for commenters. Consequently, while some direct electronic transmission of both domestic and foreign filers; 168 foreign issuers will incur costs as a documents, which will enable foreign • Amended the electronic filing rules result of the adopted amendments, these issuers to file their securities documents to permit either the electronic or paper costs will be less than those that would directly via EDGAR until 10 p.m. submission of a foreign issuer’s have resulted under the rule proposal. Eastern Standard Time or Eastern ‘‘statutory’’ report under Form 6–K in We further expect that the benefits of Daylight Saving Time, whichever is in specified circumstances; 169 the adopted amendments will justify the effect. • Amended Form 6–K to permit the resulting costs. Both foreign issuers and investors submission of an English summary of a should benefit from increased statutory report or other foreign B. Benefits efficiencies in the Commission’s storage, language document in specified We expect that the adopted retrieval, and analysis of foreign issuer circumstances in addition to those amendments will benefit investors, filings, which are expected to result specified in the electronic and paper financial analysts and others by from the adopted amendments. Because filing rules; 170 and increasing the efficiency of retrieving the Commission’s staff will be able to • Amended Form 6–K to clarify that and disseminating information about retrieve and analyze information about a foreign private issuer is not required foreign issuers that file registration foreign filers more readily than under to submit under cover of Form 6–K an statements, periodic reports and other our current paper system, mandated offering circular or prospectus that documents with the Commission, to the electronic filing for foreign issuers pertains solely to a foreign offering, extent that these documents are not should facilitate both the staff’s review even when an English translation or currently available through EDGAR.173 of a particular foreign issuer’s English summary is available, if the The mandated electronic transmission registration statement or report and its issuer has already submitted a Form 6– of foreign issuers’ securities documents study of issues affecting most foreign K that reported material information will enable investors to access more filers. For example, the adopted disclosed in the offering circular or quickly registration statements, annual amendments should enable Commission prospectus.171 and periodic reports and other filings staff to access quickly a foreign containing detailed information about registrant’s Exchange Act reports that 167 New Regulation S–T Rule 306(a), new foreign issuers. Instead of having to have been incorporated by reference Securities Act Rule 403(c)(1) and (3), and new Exchange Act Rule 12b–12(d)(1) and (3). come in person or through an agent to into a Securities Act registration 168 Ten commenters specifically objected to this the Commission’s public reference statement that is the subject of review. written certification requirement, which is room 174 to conduct a search for a Because Commission staff must review currently codified at Regulation S–T Rule 306(a). particular foreign issuer filing that is in these incorporated reports when 169 New Regulation S–T Rule 101(b)(7). The paper or microfiche, an investor will be specified circumstances are that the report cannot conducting a full review of the be a press release, cannot have been or required to able to find and review a foreign issuer Securities Act document, electronic be circulated to the foreign private issuer’s security filing on any computer with an Internet access to all relevant reports should holders, and, if discussing a material event, must connection by accessing the EDGAR facilitate the timely completion of the have already been the subject of a Form 6–K filed system through the Commission’s web on EDGAR. review process for a foreign registrant. 170 New paragraph D of the General Instructions site or through a third party web site The adopted amendments will also to Form 6–K. The specified circumstances are that that links to EDGAR. The adopted enable Commission staff to access the report cannot be a press release and cannot have amendments will also enable financial rapidly registration statements, reports been or required to be circulated to the foreign analysts and others to retrieve, analyze and related correspondence pertaining private issuer’s security holders. At the request of commenters, we have further amended Form 6–K to other foreign issuers that are in the to clarify that a statutory report that discloses only 172 New Regulation S–T Rule 101(a)(1)(vi). same geographic region or industry unconsolidated financial information of a parent 173 Approximately 20% of Exchange Act reporting group as a foreign registrant. This company may be the subject of an English foreign issuers voluntarily filed their securities summary. documents on EDGAR in calendar 2001. electronic access should foster the 171 New paragraph D of the General Instructions 174 The Commission’s public reference room is development of consistent comments on to Form 6–K. located in its Washington, D.C. headquarters. issues that are common to foreign

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registrants. This should result in better following reasons, we also expect that They all will have to hire information disclosure to the benefit of foreign only a minority of foreign issuers will technology employees or agents that are issuers and the investing public alike. bear the full range of costs resulting knowledgeable about the EDGAR Investors and members of the from adoption of the amendments. process. Then they will incur the costs financial community will also benefit The expected costs consist of both associated with formatting and from the adopted amendments’ initial and ongoing costs. Initial costs transmitting their documents on requirement that foreign issuers provide are those associated with the purchase EDGAR, which may include the cost of full English translations of specified of compatible computer equipment and subscribing to an Internet service documents because of their importance software, including EDGAR software if provider. in understanding the business and obtained from a third-party vendor and A much larger segment of Exchange financial condition of, and corporate not from the Commission’s web site.176 Act reporting foreign private issuers governance matters pertaining to, an Initial costs also include those resulting already currently electronically format issuer. Investors and others will also from the training of existing employees their financial statements in some benefit from the adopted amendments’ to be EDGAR proficient or the hiring of fashion for public use. Of the total requirement that a foreign issuer additional employees or agents that are number of Exchange Act reporting disclose under cover of a Form 6–K new already skilled in EDGAR processing. companies as of December 31, 2000, material information mentioned also in Initial costs further include those 1,066 (approximately 81%) had a statutory report, foreign offering associated with the formatting and electronically formatted their financial circular, or other foreign language transmission of a foreign issuer’s first statements and other material document before it may submit an document filed on EDGAR. These information either for posting on their English summary of the statutory report transmission costs may include those web site or to meet the requirements of or offering circular. This requirement related to subscribing to an Internet their sovereign securities will serve to ensure the prompt service provider. commission.178 Similarly, of the 161 dissemination of all material Ongoing costs are those associated foreign private issuers that became information about a foreign issuer in with the electronic formatting and Exchange Act reporting companies in U.S. capital markets. transmission of subsequent EDGAR calendar year 2001, 125 (approximately We are aware that many foreign filings, including amendments to a 78%) had electronically formatted their issuers already post their financial foreign issuer’s initial EDGAR filing. An financial statements and other material statements in electronic format on their issuer may also incur future costs information for public consumption.179 web sites. Nevertheless, we believe that resulting from the training or hiring of These foreign issuers have already mandated EDGAR filing for foreign employees regarding updated EDGAR incurred initial costs associated with the issuers is beneficial to investors for the filing requirements. preparation of disclosure materials in an following reasons. The magnitude of these costs for a electronic format. They have already • Mandated EDGAR filing for foreign foreign issuer will depend on its level trained their employees or hired an in- issuers will result in the Commission’s of technological proficiency and its house information technology team or a creation of a central electronic previous familiarity with EDGAR filing third party agent, such as an Internet repository for foreign filings that is free requirements. services company or financial printer, to to anyone that has access to a computer For example, of the 1,310 foreign format electronically their financial linked to the Internet. private issuers that were Exchange Act statements and other documents of • Some foreign issuers have only reporting companies as of December 31, interest to investors. After obtaining the 177 posted on their web sites financial 2000, 244 (approximately 19%) not EDGAR software,180 these persons statements that meet their home country only did not voluntarily file on EDGAR, should be capable of electronically requirements and not the Commission’s but also did not electronically present processing reporting foreign issuers’ requirements. their financial statements on their web • securities documents for the EDGAR Many foreign issuers have sites or otherwise for public use. system. Consequently, for electronically formatted their financial Similarly, of the 161 foreign private approximately four-fifths of Exchange statements only in PDF for viewing on issuers that became Exchange Act Act reporting foreign issuers, the their web sites. PDF’s search capabilities reporting companies during calendar mandated EDGAR requirements should are not as extensive as those provided year 2001, 36 (approximately 22%) by the version of HTML that EDGAR lacked an informational web site in 178 This amount includes the 481 Canadian public filers may use to format electronically addition to not filing on EDGAR. These companies (approximately 37% of reporting foreign their documents.175 Moreover, since foreign private issuers will incur the full private issuers as of December 31, 2000) that are HTML is a dominant language of the range of initial and other costs required by the Canadian Securities Administrators to file their securities documents electronically on Internet, Commission staff will be able associated with electronic filing. Some Canada’s System for Electronic Document Analysis to upgrade EDGAR data formatting may have to purchase compatible and Retrieval (‘‘SEDAR’’). This amount further requirements to keep current with computer equipment. Some may also includes 585 non-Canadian foreign private issuers Internet standards and to take advantage have to upgrade their operating and (approximately 45% of reporting foreign private word processing software in addition to issuers as of calendar year 2000 year end) that have of improvements in Internet data chosen to post on their web sites their most recent formats. obtaining the EDGARLink software. and historical financial statements either as part of their annual or periodic reports or standing alone. C. Costs 176 Once a first-time EDGAR filer has filed a Form The 80% figure also includes the foreign private We expect that the adopted ID to obtain its EDGAR access codes, it can issuers that were Exchange Act reporting companies amendments will result in some costs to download for free the EDGARLink software from as of December 31, 2000 and had filed their the Commission’s web site. The EDGAR filing securities documents on EDGAR. foreign issuers. However, for the manual is also available for downloading at our web 179 Approximately 56% of the 125 reporting site. Filers may also purchase the EDGARLink foreign issuers were Canadian. 175 PDF is based on a proprietary data format for software and filer manual through the 180 As previously mentioned, since the which only a few software programs with search Commission’s Public Reference Room and from EDGARLink software is now available on the capabilities are commercially available. In contrast, certain third party vendors. See the EDGAR Commission’s web site, for most new EDGAR filers, there are a variety of methods, languages and Overview at Section C(1). the cost of obtaining the EDGAR software will be software available for searching a HTML document. 177 See Reporting Foreign Issuers List. insignificant.

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result only in costs related primarily to reporting foreign private issuers, the adopted amendments that permit the the electronic formatting of their adopted amendments should result in filing of a statutory report in paper and securities documents in a format no initial costs and little or no ongoing eliminate the need to submit a foreign compatible with EDGAR and costs in addition to those that the offering circular in specified transmission of the EDGAR formatted foreign issuer had already decided to circumstances. These amendments documents to the Commission. expend. should prevent the incurrence of Currently EDGAR only accepts For the minority of foreign issuers excessive costs that many commenters documents formatted in HTML 3.2 or in that have not yet electronically feared would result from the proposed ASCII. Many Exchange Act reporting presented their financial statements for requirement to provide a full English foreign issuers have formatted their public use,185 as well as for other translation of all foreign language financial statements only in PDF for foreign issuers affected by the adopted documents. presentation on their web sites or for amendments, we expect that Nevertheless, some foreign issuers submission to foreign securities technological advances regarding the may incur costs from our requirement to commissions.181 These foreign issuers Internet and recent modernization of the provide an English translation instead of may incur both initial and ongoing costs EDGAR system will help reduce the an English summary of some of the associated with presenting their initial and ongoing costs resulting from specified documents. Some foreign financial statements in an EDGAR- mandated EDGAR filing for foreign issuers may also incur costs from our compatible format. issuers. For example, today foreign elimination of the option to file a However, other reporting foreign issuers are able to transmit directly their ‘‘version’’ or ‘‘brief description’’ of a issuers have presented their financial securities documents to the Commission foreign language document instead of an statements in some version of HTML on through the Internet with the assistance English summary or translation for both their web sites. These foreign issuers of an Internet services provider. A electronic and paper filings.187 Because have already trained employees or an foreign issuer should find that this there has been only limited use of the agent familiar with formatting in HTML. method is less expensive than using a summary, version or brief description This previous familiarity with HTML direct dial modem to connect to the option, we do not expect the above should help to reduce the initial EDGAR EDGAR system with the resultant long amendments to affect many filers.188 costs for these reporting foreign private distance charges. Moreover, many agents, including some issuers.182 This previous expertise in Today there also are numerous with EDGAR expertise, provide HTML may also help to lessen the financial printers and other information translation services. The globalization of ongoing costs related to updated EDGAR technology specialists that are capable these agents in recent years should serve training that incorporates improvements of electronic document processing, to lessen the costs of obtaining their in HTML. including for the EDGAR system, and translation services.189 Moreover, since HTML is a dominant available on an international basis.186 The amendments will cause some language used to present information on No longer must a foreign issuer rely on domestic persons to file on EDGAR their Internet web sites, reporting foreign a filing agent located in a major city in Schedule TOs, Form CBs and Schedule issuers that have formatted their the United States for its EDGAR needs. 13D/Gs in connection with tender financial statements thus far only in This closer proximity of EDGAR offers, exchange offers and other PDF may already have trained knowledgeable agents should reduce the transactions involving the securities of employees or an agent familiar with travel, long distance and other initial foreign private issuers. However, we formatting in HTML. If so, these foreign and ongoing costs shouldered by expect the number of affected domestic issuers should also face reduced initial reporting foreign issuers when persons to be small. During calendar and ongoing EDGAR costs.183 preparing their documents for the years 2000 and 2001, out of a total During the calendar year ended EDGAR system. number of 245 and 599 Schedule TOs December 31, 2000, 232 (approximately The adopted amendments require that filed, respectively, with the 18%) of reporting foreign private issuers both electronic and paper filers obtain Commission, only 11 (approximately voluntarily chose to file their annual full English translations for specified 4%) and 15 (approximately 2.5%) were reports, registration statements and foreign language documents while filed in paper. Of these 11 and 15 paper other securities documents on EDGAR. permitting the submission of English Schedule TOs filed, respectively, in This segment of voluntary EDGAR filers summaries for other documents. We do 2000 and 2001, none and only three increased to 269 (approximately 20%) not expect these provisions to increase (approximately 0.5% out of the total during the calendar year ended materially the costs of document filed) were filed by domestic entities. December 31, 2001.184 For these preparation and filing for foreign issuers Similarly, for calendar years 2000 and and other affected persons, since the 2001, out of a total of 13,282 and 12,439 181 For example, the Canadian Securities adopted amendments largely codify Schedule 13Ds and 13Gs filed, only 279 Administrators require that Canadian public companies file their securities documents in PDF existing Commission practice regarding (approximately 2%) and 284 on SEDAR. See Canada’s National Instrument 13– the treatment of foreign language (approximately 2%) were filed in paper. 101 (September 7, 1999). documents. Moreover, in response to Of these Schedule 13D/G paper filings, 182 Even if foreign issuers are unfamiliar with commenters’ concerns, we have adopted only 7 (approximately .1% of the total HTML, there are many software packages available amendments that permit the submission that will translate their documents into ASCII or HTML. of an English summary instead of a full 187 The brief description option appears in the 183 Furthermore, since under Regulation S–T Rule English translation of a statutory report current version of General Instruction D to Form 6– 104 [17 CFR 232.104], we allow EDGAR filers to file K. or other foreign language document in 188 a PDF version of a document as an unofficial copy, specified circumstances. We also have During calendar years 2000 and 2001, out of foreign issuers that present their financial 940 filings by non-English speaking, reporting statements in PDF for non-EDGAR purposes will foreign issuers examined, depending on the type of not incur additional formatting costs when 185 This minority would include foreign filing, only 2%–5% used the English summary, exercising the option to file an unofficial PDF individuals who only file Schedules 13D or 13G. version or brief description option. version on EDGAR. 186 The web sites of each of three large financial 189 For example, the web sites of the three large 184 The total number of foreign private issuers printers reveal that, either directly or through financial printers referred to in the preceding that were Exchange Act reporting companies as of affiliates, these financial printers maintain offices in footnote advertise their translation services as an December 31, 2001 was 1344. 20–40 different countries. integral part of their businesses.

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filed) and 9 (approximately .1% of the filing Exchange Act reports because document, we do not expect any total filed) were filed by domestic these foreign private issuers have not significant costs to result other than the companies and pertained to the already voluntarily filed their reports on electronic formatting and filing costs.193 securities of foreign issuers.190 EDGAR. Conversely, for the 19% of However, if these foreign private issuers Furthermore, during calendar years reporting foreign private issuers that attempt to perform much of the EDGAR 2000 and 2001, of the 95 and 32 Form already are EDGAR filers, the preparation, filing, and related tasks CBs filed with the Commission, 32 amendments should result in no themselves, the amendments may result (approximately 34%) and 13 additional costs.191 in the incurrence of additional, (approximately 41%) were filed by Second, we expect that all of the 81% significant costs associated with the Exchange Act reporting companies. of affected reporting foreign private purchase or upgrading of computer Only four (4%) and five (16%) out of the issuers will incur costs associated with hardware and software, the subscribing total number of Form CBs filed, the electronic formatting and electronic to an Internet service provider, and the respectively, in calendar years 2000 and transmission of their Exchange Act hiring of at least one technically 2001 were filed by domestic Exchange reports. We also expect that many of proficient employee. Act reporting companies. these foreign private issuers will also Fifth, we expect that all of the foreign Some domestic persons may incur incur similar costs regarding the governments that have Exchange Act costs resulting from the electronic electronic formatting and filing of their reporting obligations will incur formatting of their securities documents Securities Act documents. electronic formatting and filing costs. as a result of the amendments. Since Third, we expect that, for 62% of Sixth, we expect the cost of electronic domestic persons are already subject to reporting foreign private issuers (or 77% formatting for all of the affected foreign mandated EDGAR filing, they already of those affected), the amendments will issuers to be $15 a page regardless of the have trained employees or agents result primarily in electronic formatting particular filing. We also expect a filing capable of readily electronically and filing costs. This segment already agent to charge an electronic filing fee formatting their Form TOs, Form CBs or has achieved technical proficiency of $150 per filing.194 Schedule 13D/Gs for the EDGAR based on their past experience system. This previous familiarity with electronically formatting their financial Seventh, we expect that the EDGAR should reduce the costs and other documents for presentation elimination of the ‘‘English version and incurred by these domestic persons as a on their web sites or to meet the brief description’’ option and adoption result of the adopted amendments. requirements of their sovereign of a limited English summary option Based on the foregoing, and as further securities commissions.192 will result in additional costs to explained below, we expect that the Fourth, for the remaining 19% of between 2–5% of foreign private issuers amendments will result in total costs for reporting foreign private issuers (or 23% when filing their Form 20–Fs, Form 6– foreign issuers of between $8,037,005 to of those affected) that have little to no Ks, and Form F–1s, depending on the $23,070,333. We have derived this range computer, Internet or related technical particular form.195 of costs based on the following experience, if they choose to outsource Based on these assumptions, we assumptions and estimates. to a financial printer or other filing expect the amendments to result in the First, we expect that the amendments agent all of the work associated with following costs for the following will affect 81% of foreign private issuers producing an EDGAR compatible forms: 196

FORM 20–F ANNUAL REPORTS

81% of 1327 foreign private issuers 197 = 1075 240 pages (including exhibits) 198 × $15 per page × 1075 = ...... $3,870,000 $150 (filing fee) × 1075 = ...... +161,250

4,031,250

190 We also expect that the amendments will not preparing a document for EDGAR filing is included percentage of these documents filed in paper in have a significant impact on affected domestic in the amount charged for EDGAR formatting. calendar years 2000 and 2001, we expect the costs entities. According to two large financial printers, 194 According to a representative of a large incurred in electronically formatting and filing the average cost of electronically formatting and financial printer, $15 per page is the typical rate these documents to be relatively insignificant. We transmitting a Schedule 13D or 13G on EDGAR is charged for most companies. These companies have also have not included Form CB in this list since $250. elected to hire the filing agent to perform most of a majority of the Form CBs filed in 2000 and 2001 191 These figures are based on the averages of the the document production tasks, including EDGAR were by non-Exchange Act reporting companies, percentages of foreign private issuers filing on formatting. This representative further stated that which are not subject to mandated EDGAR filing. EDGAR in calendar years 2000 and 2001. $150 was the typical EDGAR filing fee charged for Similarly, we have not quantified the EDGAR costs 192 most types of Securities Act and Exchange Act This segment increases to 81% of foreign that domestic issuers are expected to incur as a documents. private issuers when including those reporting result of the amendments due to the insignificant foreign private issuers that already file their 195 Based on an examination of 940 documents number of domestic filings expected to be affected. securities documents on EDGAR. filed by non-English speaking issuers in 2000 and 197 1327 is the average of the number of reporting 193 According to a representative of a large 2001, 5.0% of Form 20–F filers, 3.5% of Form F– financial printer, most companies elect to hire a 1 filers, and 2.5% of Form 6–K filers used the foreign private issuers in calendar years 2000 and filing agent to perform most or all of the work ‘‘English summary, version or brief description’’ 2001. required to produce a Securities Act or Exchange option. 198 This estimate of the average number of pages Act document, including typesetting the initial 196 We expect these forms to generate most of the of a Form 20–F annual report, as well as the average document, EDGAR formatting and filing, and EDGAR costs for foreign issuers. We have not page estimates of Forms 6–K, F–1, F–2, F–3, F–4, related tasks such as printing and document included Schedules TO, 13D and 13G in this list Schedule B, and Form 18–K, are based on an distribution. For these companies, the cost of because, as discussed above, based on the small examination of actual filings.

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FORM 6–K REPORTS

1075 foreign private issuers × 10 Form 6–Ks per issuer = 10,750 Form 6–Ks. 10,750 × 10 pages per Form 6–K × $15 = ...... $1,612,500 Filing fees = ...... +161,250

1,773,750

FORM F–1

71% × 96 filings 199 = 68 filings affected 450 pages (including exhibits) per filing × $15 × 68 = ...... $459,000 Filing fees = ...... +10,200

469,200 199 96 is the average of the number of Form F–1s filed in 2000 and 2001. 71% of these Form F–1s were paper filings.

FORM F–2

71% × 4 filings 200 = 3 filings affected 125 pages (including exhibits) per filing × 3 × $15 = ...... $5,625 Filing fees = ...... +450

6,075 200 Four is the average of the number of Form F–2s filed in 2000 and 2001. 71% of these Form F–1s were paper filings.

FORM F–3

77% × 158 filings 201 = 122 filings affected 70 pages (including exhibits) per filing × 122 × $15 = ...... $128,100 Filing fees = ...... +18,300

146,400 201 158 is the average of the Form F–3s filed in 2000 and 2001. 77% of these Form F–3s were paper filings.

FORM F–4

78% × 238 filings 202 = 186 filings affected 375 pages (including exhibits) per filing × 186 × $15 = ...... $1,046,250 Filing fees = ...... +27,900

1,074,150 202 238 is the average of the Form F–4s filed in 2000 and 2001. 78% of these Form F–4s were paper filings.

SCHEDULE B

28 foreign governments × 150 pages (including exhibits) per filing × $15 = ...... $63,000 Filing fees = ...... +4,200

67,200

FORM 18–K

24 filings × 500 pages (including exhibits) per filing × $15 = ...... $180,000 Filing fees = ...... +3,600

183,600

Total above electronic formatting and filing costs = ...... 7,751,625

We also expect the elimination of the English summary option to result in the issuers when filing their Form 20Fs, ‘‘English version or brief description’’ following additional translation costs Form 6Ks, and Form F–1s: option and the adoption of a limited for a small percentage of foreign private

FORM 20–F

13 additional pages to be translated per filing × $76 per page 203 = ...... $988 per filing

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FORM 20–F—Continued 58 affected filings × $988 = ...... 57,304 203 The rate of $76 per page assumes that an outside firm performs 75% of the English translation work at a rate of $75 per page. The $75 per page rate is an average of English translation rates for different foreign language documents that attorneys representing foreign clients have stated are typical. The $76 per page rate also assumes that a company’s in-house counsel performs 25% of the English translation work at a rate of $80 per hour. The $80 per hour rate derives from a median salary of $106,500 for a company associate or assistant general counsel in the New York City metropolitan area, according to the Report On Management & Professional Earnings in the Securities Industry, published by the SIA, October 2001. We have multiplied $106,500 by 1.35 to derive the annual cost to a company of employing an associate or assistant gen- eral counsel. We then have divided this annual cost ($143,775) by 1800 to derive a per hour cost of $80. Finally, we have added .75 × $75 and .25 × $80 to derive a blended rate of $76 per page.

FORM 6–K

8 additional pages to be translated per filing × $76 per page = $608 367 affected filings × $608 = ...... $223,136

FORM F–1

13 additional pages to be translated per filing × $76 per page = $988 5 affected filings × $988 = ...... $4,940 Total above additional ‘‘English translation’’ costs = ...... 285,380

Based on the foregoing, we expect the 244 × $60,372 208 the annual Section 3(f) of the Exchange Act require amendments to result in approximately cost of employing a com- the Commission, when engaging in $8,037,005 of costs for most reporting puter operator = ...... 14,730,768 rulemaking that requires it to consider 204 foreign issuers. However, 19% of 15,033,328 or determine whether an action is reporting foreign private issuers 206 The $1,000 cost is based on suggested necessary or appropriate in the public expected to be affected by the prices for basic computer systems stated in interest, to consider whether the action amendments may incur additional costs computer publications. will promote efficiency, competition 207 because of their lack of technical The $240 rate derives from a monthly and capital formation. rate of $20 for one year, which is typical of the In the Proposing Release, we proficiency. If these foreign private subscription fees quoted for Internet service issuers outsource most or all of the work providers in computer publications. considered the amendments in light of required to prepare a document for 208 According to the Report on Office Sala- the standards set forth in the above ries in the Securities Industry, published by statutory sections. We solicited EDGAR formatting to a financial printer the SIA, in October 2001, the mean annual or other filing agent, we expect that salary for a senior computer operator in the comment on whether, if adopted, the little to no additional costs will New York City metropolitan area is $44,720. proposed amendments would result in result.205 We have multiplied this amount by 1.35 to de- any anti-competitive effects or promote rive the cost to a company of employing a efficiency, competition and capital However, many of these foreign senior computer operator for a year. formation. We further encouraged private issuers may decide to perform We do not expect each of the 244 commenters to provide empirical data some or all of the work required for affected foreign private issuers to incur or other facts to support their views on preparing a document for EDGAR all of the above additional costs. It is any anti-competitive effects or any formatting and filing. These filers may likely that many filers will choose to burdens on efficiency, competition or also eventually choose to perform some hire outside firms to handle some or capital formation that might result from of the tasks related to document printing most of the EDGAR preparation, adoption of the proposed and distribution. If so, they may incur formatting, transmission, and related amendments.211 significant additional charges associated tasks. Therefore, we expect the total While several commenters stated that with purchasing or upgrading computer costs of the amendments to be within various aspects of the proposed hardware and software, subscribing to the range of $8,037,005 209 to amendments would result in excessive an Internet service provider, and hiring $23,070,333.210 costs and impose undue burdens on at least one technically proficient V. Promotion of Efficiency, Competition foreign issuers, only one commenter employee to assist in word processing, and Capital Formation Analysis specifically addressed whether the Internet, and EDGAR preparation tasks, proposed rules would cause anti- as follows: Section 23(a)(2) of the Exchange Act competitive effects in the U.S. economy requires the Commission, when and its capital markets. According to 244 affected foreign private adopting rules under the Exchange Act, this commenter, the proposed issuers × $1,000 to pur- to consider the anti-competitive effects elimination of the English summary chase or upgrade a com- of any rules it adopts. Furthermore, option and the proposed mandated puter system 206 = ...... $244,000 Section 2(b) of the Securities Act and EDGAR filing of most Form 6–K reports 244 × $240 207 to subscribe would result in additional costs for 209 to an Internet service pro- This amount assumes that the 19% of foreign foreign issuers. Given the increased vider per year = ...... 58,560 private issuers lacking technical proficiency will outsource most or all of the EDGAR preparation, formatting, filing, and related tasks. 211 We also requested empirical information 204 This figure ($7,751,625 + $285,380) applies to 210 This amount assumes that, in addition to the regarding the potential impact of the proposed the 81% of reporting foreign private issuers and all $8,037,005 of costs, the 19% of foreign private amendments on the economy on an annual basis for of the reporting foreign governments expected to be issuers lacking technical proficiency will incur the purposes of the Small Business Regulatory affected. maximum of estimated additional costs of Enforcement Fairness Act of 1996. We received no 205 See n. 193, above. $15,033,328. comment letters that addressed this issue.

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competitiveness among global capital amendments will reduce the costs of the document, except as provided by markets, these additional costs could amendments for foreign issuers, the paragraph (c)(3) of this section. cause foreign issuers to avoid obtaining adopted amendments should lessen any (2) If a registration statement or other financing and listing in U.S. capital economic impact on small entities. filing or submission subject to review by markets. Consequently, participants in the Division of Corporation Finance VII. Statutory Basis and Text of Rule the U.S. financial community and U.S. requires the inclusion of a foreign investors would respectively lose Amendments language document as an exhibit or financing and investment opportunities We are adopting Securities Act Rule attachment, the filer must submit a fair in these foreign companies. 493b and the amendments to Securities and accurate English translation of the In response to this concern and others Act Rule 403, the rescission of foreign language document if consisting raised by commenters, we have revised Regulation S–T Rule 601, the of any of the following, or an the proposed rules to permit the use of amendments to Regulation S–T Rules amendment of any of the following: an English summary for specified 100, 101, 303, 306 and 311, the (i) Articles of incorporation, foreign language documents and the amendments to Exchange Act Rule 12b– memoranda of association, bylaws, and paper submission of a statutory report 12, and the amendments to the other comparable documents, whether under cover of a Form 6–K in specified Securities Act and Exchange Act forms, original or restated; circumstances. Because of these under the authority in Sections 6, 7, 10 (ii) Instruments defining the rights of changes, among others, the adopted and 19(a) of the Securities Act,213 and security holders, including indentures amendments should not result in Sections 3, 12, 13, 14, 15(d), 23(a) and qualified or to be qualified under the excessive costs or undue burdens on 35A of the Exchange Act.214 We are Trust Indenture Act of 1939; foreign issuers or cause them to avoid further adopting the amendment to (iii) Voting agreements, including U.S. capital markets. Form F–X under Sections 304, 305, 307, voting trust agreements; The adopted amendments will enable 310 and 319 of the Trust Indenture (iv) Contracts to which directors, investors and other interested parties to Act.215 officers, promoters, voting trustees or have the same access to financial and security holders named in a registration other material information about foreign List of Subjects in 17 CFR Parts 230, statement are parties; issuers that have registered securities 232, 239, 240, 249, and 269 (v) Contracts upon which a filer’s with the Commission as they currently Reporting and recordkeeping business is substantially dependent; enjoy with domestic reporting requirements, Securities. (vi) Audited annual and interim companies. By facilitating the more consolidated financial information; and efficient transmission, retrieval, analysis Text of Rule Amendments (vii) Any document that is or will be and dissemination of information the subject of a confidential treatment contained in foreign issuers’ and related In accordance with the foregoing, we request under § 230.406 or § 240.24b–2 third party securities filings with the are amending Title 17, Chapter II of the of this chapter. Commission, the adopted amendments Code of Federal Regulations as follows. (3)(i) A filer may submit an English will enhance an investor’s ability to PART 230—GENERAL RULES AND summary instead of an English make an informed investment decision REGULATIONS, SECURITIES ACT OF translation of a foreign language about a foreign issuer’s securities. They 1933 document as an exhibit or attachment to also should increase the market access a filing subject to review by the Division of a reporting foreign issuer’s securities 1. The authority citation for Part 230 of Corporation Finance as long as: in the United States. continues to read in part as follows: (A) The foreign language document In addition, the adopted amendments does not consist of any of the subject Authority: 15 U.S.C. 77b, 77c, 77d, 77f, will subject foreign issuers to the same 77g, 77h, 77j, 77r, 77s, 77sss, 77z–3, 78c, 78d, matter enumerated in paragraph (c)(2) of or substantially similar electronic filing 78l, 78m, 78n, 78o, 78t, 78w, 78ll(d), 78mm, this section; or costs shouldered by domestic issuers, 79t, 80a–8, 80a–24, 80a–28, 80a–29, 80a–30, (B) The applicable form permits the thereby placing foreign issuers on a and 80a–37, unless otherwise noted. use of an English summary. more equal footing, and encouraging * * * * * (ii) Any English summary submitted competition with domestic issuers. We 2. Amend § 230.403 by removing the under paragraph (c)(3) of this section recognize that the adopted amendments authority citation following § 230.403 must: may disparately impact some foreign and by revising paragraph (c) to read as (A) Fairly and accurately summarize issuers depending on their level of follows: the terms of each material provision of technological proficiency. the foreign language document; and § 230.403 Requirements as to paper, (B) Fairly and accurately describe the VI. Regulatory Flexibility Act printing, language and pagination. terms that have been omitted or Certification * * * * * abridged. Under Section 605(b) of the (c)(1) All Securities Act filings and (4) When submitting an English Regulatory Flexibility Act,212 our submissions must be in the English summary or English translation of a Chairman certified that, when adopted, language, except as otherwise provided foreign language document under this the proposed amendments would not by this section. If a registration section, a filer must identify the have a significant economic impact on statement or other filing requires the submission as either an English a substantial number of small entities. inclusion of a document that is in a summary or English translation. A filer We attached this certification as foreign language, the filer must submit may submit a copy of the unabridged Appendix A to the Proposing Release. instead a fair and accurate English foreign language document when While we encouraged written comments translation of the entire foreign language including an English summary or regarding this certification, none of the English translation of a foreign language commenters responded to this request. 213 15 U.S.C. 77f, 77g, 77h, 77j, and 77s(a). document in a filing. A filer must Since the changes made to the proposed 214 15 U.S.C. 78c, 78l, 78m, 78n, 78o(d), 78w, and provide a copy of any foreign language 78ll. document upon the request of 212 5 U.S.C. 605(b). 215 15 U.S.C. 77ddd, 77eee, 77ggg, 77jjj and 77sss. Commission staff.

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(5) A Canadian issuer may file an (a) Registrants whose filings are (vii) Form F–X (§ 239.42 of this exhibit or other part of a registration subject to review by the Division of chapter) except as otherwise provided statement on Form F–7, F–8, F–9, F–10, Corporation Finance; by § 232.101(b)(9); and or F–80 (§§ 239.37, 239.38, 239.39, * * * * * (viii) Form F–N (§ 239.43 of this 239.40, or 239.41 of this chapter), that (c) Any party (including natural chapter) filed by foreign banks and contains text in both French and English persons) that files a document jointly insurance companies and certain of if the issuer included the French text to with, or as a third party filer with their holding companies and finance comply with the requirements of the respect to, a registrant that is subject to subsidiaries under § 230.489 of this Canadian securities administrator or mandated electronic filing chapter. other Canadian authority and, for an requirements. * * * * * electronic filing, if the filing is an HTML 6. Amend § 232.101: (b) * * * document, as defined in Regulation S-T a. By designating the Note to (1) Annual reports to security holders Rule 11(§ 232.11). paragraph (a)(1)(iii) as Note 1. and furnished for the information of the * * * * * adding Note 2.; Commission under § 240.14a–3(c) of 3. Section 230.493 is revised to read b. By removing the word ‘‘and’’ at the this chapter or § 240.14c–3(b) of this as follows: end of paragraph (a)(1)(iv); chapter, under the requirements of Form c. By removing the period at the end 10–K or Form 10–KSB (§§ 249.310 or § 230.493 Additional Schedule B of paragraph (a)(1)(v) and in its place 249.310b of this chapter) filed by disclosure and filing requirements. adding a semicolon; registrants under Exchange Act Section (a) The copy of the opinion or d. By adding paragraphs (a)(1)(vi), 15(d) (15 U.S.C. 78o(d)), or by foreign opinions of counsel required by (a)(1)(vii) and (a)(1)(viii); private issuers filed on Form 6–K paragraph (14) of Schedule B shall be e. By revising paragraphs (b)(1) and (§ 249.306 of this chapter) under filed either as a part of the registration (b)(6); § 240.13a–16 of this chapter or statement as originally filed, or as an f. By adding paragraphs (b)(7), (b)(8), § 240.15d–16 of this chapter; amendment to the registration (b)(9), and (b)(10); * * * * * statement. g. By removing the period at the end (6) Periodic reports and reports with (b) A foreign government or political of each of paragraphs (c)(5), (c)(6), and respect to distributions of primary subdivision of a foreign government (c)(14) and in its place adding a obligations filed by: must file a registration statement semicolon; (i) The International Bank for submitted under Schedule B of the Act h. By revising paragraph (c)(9); Reconstruction and Development under on the Commission’s Electronic Data i. By removing paragraph (c)(15); Section 15(a) of the Bretton Woods Gathering and Retrieval System j. By redesignating paragraphs (c)(16) Agreements Act (22 U.S.C. 286k–1(a)) (EDGAR) unless it has obtained a and (c)(17) as paragraphs (c)(15) and and Part 285 of this chapter; hardship exemption under § 232.201 or (c)(16); (ii) The Inter-American Development § 232.202 of this chapter (Regulation S– k. By adding the word ‘‘and’’ at the Bank under Section 11(a) of the Inter- T). end of newly redesignated paragraph American Development Bank Act (22 (c)(15); U.S.C. 283h(a)) and Part 286 of this (c) A foreign government or political l. By removing the semicolon and the chapter; subdivision must disclose in its word ‘‘and’’ at the end of newly (iii) The Asian Development Bank Schedule B registration statement: redesignated paragraph (c)(16) and under Section 11(a) of the Asian (1) That the Commission maintains an adding a period in its place; and Development Bank Act (22 U.S.C. Internet site that contains reports and m. By removing paragraph (d). 285h(a)) and Part 287 of this chapter; other information regarding issuers that The additions and revisions read as (iv) The African Development Bank file electronically with the Commission; follows: under Section 9(a) of the African and Development Bank Act (22 U.S.C. 290i– (2) The address for the Commission § 232.101 Mandated electronic 9(a)) and Part 288 of this chapter; submissions and exceptions. Internet site (http://www.sec.gov). A (v) The International Finance foreign government or political (a) * * * Corporation under Section 13(a) of the subdivision filing on EDGAR is further (1) * * * International Finance Corporation Act encouraged to give its Internet address, (iii) * * * (22 U.S.C. 282k(a)) and Part 289 of this if available. Notes to Paragraph (a)(1)(iii). chapter; and Note 1. *** (vi) The European Bank for PART 232—REGULATION S–T— Reconstruction and Development under GENERAL RULES AND REGULATIONS Note 2. Foreign private issuers must file or Section 9(a) of the European Bank for FOR ELECTRONIC FILINGS submit their Form 6-K reports (§ 249.306 of Reconstruction and Development Act this chapter) in electronic format, except as (22 U.S.C. 290l–7(a)) and Part 290 of this 4. The authority citation for Part 232 otherwise permitted by paragraphs (b)(1) and (b)(7) of this section. chapter; continues to read as follows: (7) A report or other document Authority: 15 U.S.C. 77f, 77g, 77h, 77j, * * * * * submitted by a foreign private issuer 77s(a), 77sss(a), 78c(b), 78l, 78m, 78n, 78o(d), (vi) Form CB (§§ 239.800 and 249.480 under cover of Form 6–K (§ 249.306 of 78w(a), 78ll(d), 79t(a), 80a–8, 80a–29, 80a–30 of this chapter) filed or submitted under this chapter) that the issuer must and 80a–37. § 230.801 or 230.802 of this chapter or furnish and make public under the laws 5. Amend § 232.100 by revising § 240.13e–4(h)(8), 240.14d–1(c), or of the jurisdiction in which the issuer is paragraphs (a) and (c) to read as follows: 240.14e–2(d) of this chapter if the party incorporated, domiciled or legally filing or submitting the Form CB is organized (the foreign private issuer’s § 232.100 Persons and entities subject to subject to the reporting requirements of ‘‘home country’’), or under the rules of mandated electronic filing. Section 13 or 15(d) of the Exchange Act the home country exchange on which * * * * * (15 U.S.C. 78m or 78o(d)); the issuer’s securities are traded, as long

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as the report or other document is not d. By adding new paragraphs (b), (c), 239.38, 239.39, 239.40, and 239.41 of a press release, is not required to be and and (d). this chapter); has not been distributed to the issuer’s The additions and revisions read as (2) A registration statement or annual security holders, and, if discussing a follows: report on Form 40–F (§ 249.240f of this material event, has already been the § 232.306 Foreign language documents chapter); or subject of a Form 6–K or other and symbols. (3) A Schedule 13E–4F (§ 240.13e–102 Commission filing or submission on (a) All electronic filings and of this chapter), Schedule 14D–1F EDGAR; (8) Form CB (§§ 239.800 and 249.480 submissions must be in the English (§ 240.14d–102), or Schedule 14D–9F of this chapter) if the party filing or language, except as otherwise provided (§ 240.14d–103). submitting the Form CB is not subject to by paragraph (d) of this section. If a * * * * * the reporting requirements of Section 13 filing or submission requires the 9. Amend § 232.311 by redesignating or 15(d) of the Exchange Act (15 U.S.C. inclusion of a document that is in a paragraphs (f), (g) and (h) as paragraphs 78m or 78o(d)); foreign language, a party must submit (h), (i) and (j) and by adding new (9) Form F–X (§ 239.42 of this instead a fair and accurate English paragraphs (f) and (g) to read as follows: chapter) if: translation of the foreign language (i) The party filing or submitting a document in accordance with § 232.311 Documents submitted in paper Form CB (§§ 239.800 and 249.480 of this § 230.403(c) or § 240.12b–12(d) of this under cover of Form SE. chapter) is not subject to the reporting chapter, except as otherwise provided * * * * * requirements of Section 13 or Section by paragraph (c) of this section. (f) A party may submit a copy of an 15(d) of the Exchange Act (15 U.S.C. Alternatively, if the foreign language unabridged foreign language document 78m or 15 U.S.C. 78o(d)); or document is an exhibit or attachment to in paper under cover of Form SE if the (ii) Filed by a Canadian issuer when a filing or submission subject to review electronic filing or submission includes qualifying an offering statement by the Division of Corporation Finance, an English summary or English pursuant to the provisions of Regulation a party may provide a fair and accurate translation of the foreign language A (§§ 230.251–230.263 of this chapter); English summary of the foreign document in accordance with and language document if permitted by § 232.306(b) or if permitted by the (10) Form 25 (§ 249.25 of this § 230.403(c)(3) or § 240.12b–12(d)(3) of applicable form. chapter). this chapter. (g) A foreign government or political * * * * * (b) When including an English summary or English translation of a subdivision that is not filing in (c)(9) Exchange Act filings submitted electronic format an English translation to the Division of Market Regulation, foreign language document in an electronic filing or submission, a party of its latest annual budget submitted as except for Form 25 (§ 249.25 of this Exhibit B to Form 18 (§ 249.218 of this chapter). may also submit a copy of the unabridged foreign language document chapter) or Exhibit (c) to Form 18–K * * * * * in paper under cover of Form SE (§ 249.318 of this chapter) must file a 7. Amend § 232.303 by revising copy of the foreign language version of paragraph (b) to read as follows: (§§ 239.64, 249.444, 259.603, 269.8, and 274.403 of this chapter) in accordance its latest annual budget in paper under § 232.303 Incorporation by reference. with § 232.311 of this chapter. A filer cover of Form SE in accordance with (a) * * * must provide a copy of any foreign § 232.306(c) of this chapter. (b) If a filer incorporates by reference language document upon the request of * * * * * into an electronic filing any portion of Commission staff. § 232.601 [Removed and Reserved] an annual or quarterly report to security (c) A foreign government or its holders, it must also file the portion of political subdivision must electronically 10. § 232.601 is removed and the annual or quarterly report to file a fair and accurate English reserved. security holders in electronic format as translation, if available, of its latest an exhibit to the filing, as required by annual budget as presented to its PART 239—FORMS PRESCRIBED Regulation S–K Item 601(b)(13) legislative body, as Exhibit B to Form 18 UNDER THE SECURITIES ACT OF 1933 (§ 229.601(b)(13) of this chapter) and (§ 249.218 of this chapter) or Exhibit (c) Regulation S–B Item 601(b)(13) to Form 18–K (§ 249.318 of this 11. The authority citation for Part 239 (§ 228.601(b)(13) of this chapter). If a chapter). If no English translation is continues to read in part as follows: foreign private issuer incorporates by available, a foreign government or Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s, reference into an electronic filing any political subdivision must submit a 77z–2, 77sss, 78c, 78l, 78m, 78n, 78o(d), portion of an annual or other report to copy of the foreign language version of 78u–5, 78w(a), 78ll(d), 79e, 79f, 79g, 79j, 79l, security holders, or of a Form 6–K its latest annual budget in paper under 79m, 79n, 79q, 79t, 80a–8, 80a–24, 80a–29, 80a–30 and 80a–37, unless otherwise noted. report (§ 249.306 of this chapter) filed or cover of Form SE (§§ 239.64, 249.444, submitted in paper, it also must file the 259.603, 269.8, and 274.403 of this * * * * * incorporated portion in electronic chapter). 12. Amend Form F–1 (referenced in format as an exhibit to the filing. The (d) A Canadian issuer may file an § 239.31), General Instructions II., by requirements of this paragraph do not HTML document, as defined in § 232.11 adding paragraphs C. and D. to read as apply to incorporation by reference by of this chapter, that contains text in both follows: an investment company from an annual French and English if the issuer (Note: The text of Form F–1 does not and the or quarterly report to security holders. included the French text to comply with amendment will not appear in the Code of 8. Amend § 232.306: the requirements of the Canadian Federal Regulations.) a. By revising paragraph (a); securities administrator or other OMB Approval b. By removing the Note following Canadian authority, and the French text OMB Number: 3235–0258 paragraph (a); is in an exhibit to or part of: Expires: January 31, 2005 c. By redesignating paragraph (b) as (1) A registration statement on Form Estimated average burden hours per paragraph (e); and F–7, F–8, F–9, F–10, or F–80 (§§ 239.37, response: 471.0

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Securities and Exchange Commission, C. A registrant must file the Form F–2 8900. For assistance with questions about the Washington, D.C. 20549 registration statement in electronic format via EDGAR rules, call the Office of EDGAR and the Commission’s Electronic Data Gathering Information Analysis at (202) 942–2940. Form F–1—Registration Statement Under the and Retrieval System (EDGAR) in accordance E. The Form F–3 registration statement Securities Act of 1933 with the EDGAR rules set forth in Regulation must be in the English language, as required * * * * * S–T (17 CFR Part 232), except that a by Regulation S–T Rule 306 (17 CFR 232.306) General Instructions registrant that has obtained a hardship for electronic filings and Securities Act Rule exception under Regulation S–T Rule 201 or 403(c) (17 CFR 230.403(c)), generally. If the * * * * * 202 (17 CFR 232.201 or 232.202) may file the registration statement requires the inclusion, II. Application of General Rules and registration statement in paper. For as an exhibit or attachment, of a document Regulations assistance with technical questions about that is in a foreign language, the registrant * * * * * EDGAR or to request an access code, call the must provide instead either an English C. A registrant must file the Form F–1 EDGAR Filer Support Office at (202) 942– translation or an English summary of the registration statement in electronic format via 8900. For assistance with questions about the foreign language document in accordance the Commission’s Electronic Data Gathering EDGAR rules, call the Office of EDGAR and with Securities Act Rule 403(c) (17 CFR and Retrieval System (EDGAR) in accordance Information Analysis at (202) 942–2940. 230.403(c)) for both electronic and paper with the EDGAR rules set forth in Regulation D. The Form F–2 registration statement filings. The registrant may submit a copy of S–T (17 CFR Part 232), except that a must be in the English language, as required the unabridged foreign language document registrant that has obtained a hardship by Regulation S–T Rule 306 (17 CFR 232.306) along with the English translation or English exception under Regulation S–T Rule 201 or for electronic filings and Securities Act Rule summary as permitted by Regulation S–T 202 (17 CFR 232.201 or 232.202) may file the 403(c) (17 CFR 230.403(c)), generally. If the Rule 306(b) (17 CFR 232.306(b)) for registration statement in paper. For registration statement requires the inclusion, electronic filings or by Securities Act Rule assistance with technical questions about as an exhibit or attachment, of a document 403(c)(4) (17 CFR 230.403(c)(4)) for paper EDGAR or to request an access code, call the that is in a foreign language, the registrant filings. EDGAR Filer Support Office at (202) 942– must provide instead either an English * * * * * 8900. For assistance with questions about the translation or an English summary of the 15. Amend Form F–4 (referenced in EDGAR rules, call the Office of EDGAR and foreign language document in accordance § 239.34), General Instructions D., by Information Analysis at (202) 942–2940. with Securities Act Rule 403(c) (17 CFR adding paragraphs 4. and 5. to read as 230.403(c)) for both electronic and paper D. The Form F–1 registration statement follows: must be in the English language, as required filings. The registrant may submit a copy of by Regulation S–T Rule 306 (17 CFR 232.306) the unabridged foreign language document (Note: The text of Form F–4 does not and the for electronic filings and Securities Act Rule along with the English translation or English amendment will not appear in the Code of 403(c) (17 CFR 230.403(c)), generally. If the summary as permitted by Regulation S–T Federal Regulations.) registration statement requires the inclusion, Rule 306(b) (17 CFR 232.306(b)) for OMB Approval as an exhibit or attachment, of a document electronic filings or by Securities Act Rule OMB Number: 3235–0325 that is in a foreign language, the registrant 403(c)(4) (17 CFR 230.403(c)(4)) for paper Expires: October 31, 2004 must provide instead either an English filings. Estimated average burden hours per translation or an English summary of the * * * * * response: 1311 foreign language document in accordance 14. Amend Form F–3 (referenced in Securities and Exchange Commission, with Securities Act Rule 403(c) (17 CFR § 239.33), General Instructions II., by 230.403(c)) for both electronic and paper Washington D.C. 20549 filings. The registrant may submit a copy of adding paragraphs D. and E. to read as follows: F–4—Registration Statement Under the the unabridged foreign language document Securities Act of 1933 along with the English translation or English (Note: The text of Form F–3 does not and the * * * * * summary as permitted by Regulation S–T amendment will not appear in the Code of Rule 306(b) (17 CFR 232.306(b)) for Federal Regulations.) General Instructions electronic filings or by Securities Act Rule OMB Approval * * * * * 403(c)(4) (17 CFR 230.403(c)(4)) for paper OMB Number: 3235–0256 filings. D. Application of General Rules and Expires: May 31, 2003 Regulations * * * * * Estimated average burden hours per 13. Amend Form F–2 (referenced in response: 41.5 * * * * * 4. A registrant must file the Form F–4 § 239.32), General Instructions II., by Securities and Exchange Commission registration statement in electronic format via adding paragraphs C. and D. to read as the Commission’s Electronic Data Gathering follows: Form F–3—Registration Statement Under the Securities Act of 1933 and Retrieval System (EDGAR) in accordance with the EDGAR rules set forth in Regulation (Note: The text of Form F–2 does not and the * * * * * amendment will not appear in the Code of S–T (17 CFR Part 232), except that a Federal Regulations.) General Instructions registrant that has obtained a hardship OMB Approval * * * * * exception under Regulation S–T Rule 201 or OMB Number: 3235–0257 202 (17 CFR 232.201 or 232.202) may file the II. Application of General Rules and registration statement in paper. For Expires: September 30, 2003 Regulations Estimated average burden hours per assistance with technical questions about response: 140.0 * * * * * EDGAR or to request an access code, call the D. A registrant must file the Form F–3 EDGAR Filer Support Office at (202) 942– Securities and Exchange Commission, registration statement in electronic format via 8900. For assistance with questions about the Washington, D.C. 20549 the Commission’s Electronic Data Gathering EDGAR rules, call the Office of EDGAR and Form F–2—Registration Statement Under the and Retrieval System (EDGAR) in accordance Information Analysis at (202) 942–2940. Securities Act of 1933 with the EDGAR rules set forth in Regulation 5. The Form F–4 registration statement S–T (17 CFR Part 232), except that a must be in the English language, as required * * * * * registrant that has obtained a hardship by Regulation S–T Rule 306 (17 CFR 232.306) General Instructions exception under Regulation S–T Rule 201 or for electronic filings and Securities Act Rule * * * * * 202 (17 CFR 232.201 or 232.202) may file the 403(c) (17 CFR 230.403(c)), generally. If the registration statement in paper. For registration statement requires the inclusion, II. Application of General Rules and assistance with technical questions about as an exhibit or attachment, of a document Regulations EDGAR or to request an access code, call the that is in a foreign language, the registrant * * * * * EDGAR Filer Support Office at (202) 942– must provide instead either an English

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translation or an English summary of the Expires: May 31, 2003 English translation or English summary of a foreign language document in accordance Estimated average burden hours per foreign language document as an exhibit or with Securities Act Rule 403(c) (17 CFR response: 1.0 other attachment to the registration statement 230.403(c)) for both electronic and paper Securities and Exchange Commission, or amendment as permitted by the rules of filings. The registrant may submit a copy of Washington D.C. 20549 the applicable Canadian securities the unabridged foreign language document administrator. along with the English translation or English Form F–7—Registration Statement Under the H. For a paper filing, one signed original summary as permitted by Regulation S–T Securities Act of 1933 of the registration statement or amendment Rule 306(b) (17 CFR 232.306(b)) for * * * * * must be numbered sequentially (in addition electronic filings or by Securities Act Rule General Instructions to any internal numbering that otherwise 403(c)(4) (17 CFR 230.403(c)(4)) for paper may be present) by handwritten, typed, filings. * * * * * printed or other legible form of notation from * * * * * II. Application of General Rules and the first page through the last page of the 16. Amend Form F–6 (referenced in Regulations registration statement or amendment, § 239.36), General Instructions III, by * * * * * including any exhibits or attachments. A revising paragraph C. to read as follows: C. A registrant must file the registration paper filer must disclose the total number of statement in electronic format via the pages on the first page of the sequentially (Note: The text of Form F–6 does not and the Commission’s Electronic Data Gathering, numbered registration statement or amendment will not appear in the Code of Analysis, and Retrieval (EDGAR) system in amendment. Federal Regulations.) accordance with the EDGAR rules set forth in * * * * * OMB Approval Regulation S–T (17 CFR Part 232). For OMB Number: 3235–0292 assistance with technical questions about 18. Amend Form F–8 (referenced in Expires: October 31, 2002 EDGAR or to request an access code, call the § 239.38), General Instructions IV, by Estimated average burden hours per EDGAR Filer Support Office at (202) 942– revising paragraphs C., E., I., and J. to response: 1.0 8900. For assistance with the EDGAR rules, read as follows: Securities and Exchange Commission, call the Office of EDGAR and Information (Note: The text of Form F–8 does not and the Washington D.C. 20549 Analysis at (202) 942–2940. amendment will not appear in the Code of If filing the registration statement in paper Federal Regulations.) Form F–6—Registration Statement Under the under a hardship exemption in Rule 201 or Securities Act of 1933 for Depositary Shares 202 of Regulation S–T (17 CFR 232.201 or OMB Approval Evidenced by American Depositary Receipts 232.202), or as otherwise permitted, a OMB Number: 3235–0378 * * * * * registrant must file with the Commission at Expires: May 31, 2003 Estimated average burden hours per General Instructions its principal office five copies of the complete registration statement and any response: 0.5 * * * * * amendments, including exhibits and all other Securities and Exchange Commission, III. Application of General Rules and documents filed as a part of the registration Washington D.C. 20549 Regulations statement or amendment. The registrant must * * * * * bind, staple or otherwise compile each copy Form F–8—Registration Statement Under the Securities Act of 1933 C. You must file the Form F–6 registration in one or more parts without stiff covers. The statement in electronic format via the registrant must further bind the registration * * * * * statement or amendment on the side or Commission’s Electronic Data Gathering, General Instructions Analysis, and Retrieval (EDGAR) system in stitching margin in a manner that leaves the accordance with the EDGAR rules set forth in reading matter legible. The registrant must * * * * * Regulation S–T (17 CFR Part 232). For provide three additional copies of the IV. Application of General Rules and assistance with technical questions about registration statement or amendment without Regulations exhibits to the Commission. EDGAR or to request an access code, call the * * * * * EDGAR Filer Support Office at (202) 942– * * * * * C. A registrant must file the registration 8900. For assistance with the EDGAR rules, E. An electronic filer must provide the statement in electronic format via the call the Office of EDGAR and Information signatures required for the registration Commission’s Electronic Data Gathering, Analysis at (202) 942–2940. statement or amendment in accordance with Analysis, and Retrieval (EDGAR) system in If filing the registration statement in paper Regulation S–T Rule 302 (17 CFR 232.302). accordance with the EDGAR rules set forth in under a hardship exemption in Rule 201 or A registrant filing in paper must have at least Regulation S–T (17 CFR Part 232). For 202 of Regulation S–T (17 CFR 232.201 or one copy of the registration statement or assistance with technical questions about 232.202), or as otherwise permitted, you amendment signed in accordance with EDGAR or to request an access code, call the must file the number of copies of the Securities Act Rule 402(e) (17 CFR EDGAR Filer Support Office at (202) 942– registration statement and of each 230.402(e)) by the persons whose signatures 8900. For assistance with the EDGAR rules, amendment required by Securities Act Rules are required for this registration statement. A call the Office of EDGAR and Information 402 and 472 (17 CFR 230.402 and 230.472), registrant must also conform the unsigned Analysis at (202) 942–2940. except that you need only file three copies. If filing the registration statement in paper additional copies instead of the ten referred * * * * * under a hardship exemption in Rule 201 or to in Rule 402(b) (17 CFR 230.402(b)). You G. A registrant must file the registration 202 of Regulation S–T (17 CFR 232.201 or may also file only three additional copies statement or amendment in electronic format 232.202), or as otherwise permitted, a instead of the eight referred to in Securities in the English language in accordance with registrant must file with the Commission at Act Rule 472(a) (17 CFR 230.472(a)). Regulation S–T Rule 306 (17 CFR 232.306). its principal office five copies of the * * * * * A registrant may file part of the prospectus complete registration statement and any 17. Amend Form F–7 (referenced in or exhibit or other attachment to the amendments, including exhibits and all other § 239.37), General Instructions II, by registration statement or amendment in both documents filed as a part of the registration revising paragraphs C., E., G., and H. to French and English if it included the French statement or amendment. The registrant must read as follows: text to comply with the requirements of the bind, staple or otherwise compile each copy Canadian securities administrator or other in one or more parts without stiff covers. The (Note: The text of Form F–7 does not and the Canadian authority and, for an electronic registrant must further bind the registration amendment will not appear in the Code of filing, if the filing is an HTML document, as statement or amendment on the side or Federal Regulations.) defined in Regulation S–T Rule 11 (17 CFR stitching margin in a manner that leaves the OMB Approval 232.11). For both an electronic filing and a reading matter legible. The registrant must OMB Number: 3235–0383 paper filing, a registrant may provide an provide three additional copies of the

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registration statement or amendment without D. A registrant must file the registration page of the sequentially numbered exhibits to the Commission. statement in electronic format via the registration statement or amendment. * * * * * Commission’s Electronic Data Gathering, * * * * * E. An electronic filer must provide the Analysis, and Retrieval (EDGAR) system in 20. Amend Form F–10 (referenced in signatures required for the registration accordance with the EDGAR rules set forth in § 239.40), General Instructions II, by statement or amendment in accordance with Regulation S–T (17 CFR Part 232). For assistance with technical questions about revising paragraphs D., F., J., and K. to Regulation S–T Rule 302 (17 CFR 232.302). read as follows: A registrant filing in paper must have at least EDGAR or to request an access code, call the one copy of the registration statement or EDGAR Filer Support Office at (202) 942– (Note: The text of Form F–10 does not and amendment signed in accordance with 8900. For assistance with the EDGAR rules, the amendment will not appear in the Code Securities Act Rule 402(e) (17 CFR call the Office of EDGAR and Information of Federal Regulations.) 230.402(e)) by the persons whose signatures Analysis at (202) 942–2940. OMB Approval are required for this registration statement. A If filing the registration statement in paper OMB number: 3235–0380 registrant must also conform the unsigned under a hardship exemption in Rule 201 or Expires: April 30, 2003 copies. 202 of Regulation S–T (17 CFR 232.201 or Estimated average burden hours per 232.202), or as otherwise permitted, a response: 6.0 * * * * * registrant must file with the Commission at I. A registrant must file the registration its principal office five copies of the Securities and Exchange Commission statement or amendment in electronic format complete registration statement and any Washington D.C. 20549 in the English language in accordance with amendments, including exhibits and all other Regulation S–T Rule 306 (17 CFR 232.306). Form F–10—Registration Statement Under documents filed as a part of the registration the Securities Act of 1933 A registrant may file part of the prospectus statement or amendment. The registrant must or exhibit or other attachment to the bind, staple or otherwise compile each copy * * * * * registration statement or amendment in both in one or more parts without stiff covers. The General Instructions French and English if it included the French registrant must further bind the registration * * * * * text to comply with the requirements of the statement or amendment on the side or Canadian securities administrator or other stitching margin in a manner that leaves the II. Application of General Rules and Canadian authority and, for an electronic reading matter legible. The registrant must Regulations filing, if the filing is an HTML document, as provide three additional copies of the * * * * * defined in Regulation S–T Rule 11 (17 CFR registration statement or amendment without D. A registrant must file the registration 232.11). For both an electronic filing and a exhibits to the Commission. statement in electronic format via the paper filing, a registrant may provide an * * * * * Commission’s Electronic Data Gathering, English translation or English summary of a Analysis, and Retrieval (EDGAR) system in foreign language document as an exhibit or F. An electronic filer must provide the signatures required for the registration accordance with the EDGAR rules set forth in other attachment to the registration statement Regulation S–T (17 CFR Part 232). For or amendment as permitted by the rules of statement or amendment in accordance with Regulation S–T Rule 302 (17 CFR 232.302). assistance with technical questions about the applicable Canadian securities EDGAR or to request an access code, call the administrator. A registrant filing in paper must have at least one copy of the registration statement or EDGAR Filer Support Office at (202) 942– J. A paper filer must number sequentially 8900. For assistance with the EDGAR rules, one signed original of the registration amendment signed in accordance with Securities Act Rule 402(e) (17 CFR call the Office of EDGAR and Information statement or amendment (in addition to any Analysis at (202) 942–2940. internal numbering that otherwise may be 230.402(e)) by the persons whose signatures are required for this registration statement. A If filing the registration statement in paper present) by handwritten, typed, printed or under a hardship exemption in Rule 201 or other legible form of notation from the first registrant must also conform the unsigned copies. 202 of Regulation S–T (17 CFR 232.201 or page through the last page of the registration 232.202), or as otherwise permitted, a statement or amendment, including any * * * * * registrant must file with the Commission at exhibits or attachments. A paper filer must I. A registrant must file the registration its principal office five copies of the disclose the total number of pages on the first statement or amendment in electronic format complete registration statement and any page of the sequentially numbered in the English language in accordance with amendments, including exhibits and all other registration statement or amendment. Regulation S–T Rule 306 (17 CFR 232.306). documents filed as a part of the registration * * * * * A registrant may file part of the prospectus statement or amendment. The registrant must 19. Amend Form F–9 (referenced in or exhibit or other attachment to the bind, staple or otherwise compile each copy § 239.39), General Instructions II, by registration statement or amendment in both in one or more parts without stiff covers. The French and English if it included the French registrant must further bind the registration revising paragraphs D., F., I., and J. to text to comply with the requirements of the read as follows: statement or amendment on the side or Canadian securities administrator or other stitching margin in a manner that leaves the (Note: The text of Form F–9 does not and the Canadian authority and, for an electronic reading matter legible. The registrant must amendment will not appear in the Code of filing, if the filing is an HTML document, as provide three additional copies of the Federal Regulations.) defined in Regulation S–T Rule 11 (17 CFR registration statement or amendment without OMB Approval 232.11). For both an electronic filing and a exhibits to the Commission. paper filing, a registrant may provide an OMB Number: 3235–0377 * * * * * Expires: April 30, 2003 English translation or English summary of a foreign language document as an exhibit or F. An electronic filer must provide the Estimated average burden hours per signatures required for the registration response. 6.0 other attachment to the registration statement or amendment as permitted by the rules of statement or amendment in accordance with Securities and Exchange Commission the applicable Canadian securities Regulation S–T Rule 302 (17 CFR 232.302). Washington D.C. 20549 administrator. A registrant filing in paper must have at least J. A paper filer must number sequentially one copy of the registration statement or Form F–9—Registration Statement Under the amendment signed in accordance with Securities Act of 1933 one signed original of the registration statement or amendment (in addition to any Securities Act Rule 402(e) (17 CFR * * * * * internal numbering that otherwise may be 230.402(e)) by the persons whose signatures General Instructions present) by handwritten, typed, printed or are required for this registration statement. A registrant must also conform the unsigned * * * * * other legible form of notation from the first page through the last page of the registration copies. II. Application of General Rules and statement or amendment, including any * * * * * Regulations exhibits or attachments. A paper filer must J. A registrant must file the registration * * * * * disclose the total number of pages on the first statement or amendment in electronic format

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in the English language in accordance with complete registration statement and any 79t, 80a–20, 80a–23, 80a–29, 80a–37, 80b–3, Regulation S–T Rule 306 (17 CFR 232.306). amendments, including exhibits and all other 80b–4 and 80b–11, unless otherwise noted. A registrant may file part of the prospectus documents filed as a part of the registration * * * * * or exhibit or other attachment to the statement or amendment. The registrant must 23. Amend § 240.12b–12 by removing registration statement or amendment in both bind, staple or otherwise compile each copy French and English if it included the French the authority citation following in one or more parts without stiff covers. The § 240.12b–12 and by revising paragraph text to comply with the requirements of the registrant must further bind the registration Canadian securities administrator or other statement or amendment on the side or (d) to read as follows: Canadian authority and, for an electronic stitching margin in a manner that leaves the filing, if the filing is an HTML document, as § 240.12b–12 Requirements as to paper, reading matter legible. The registrant must printing and language. defined in Regulation S–T Rule 11 (17 CFR provide three additional copies of the 232.11). For both an electronic filing and a registration statement or amendment without * * * * * paper filing, a registrant may provide an exhibits to the Commission. (d)(1) All Exchange Act filings and English translation or English summary of a submissions must be in the English * * * * * foreign language document as an exhibit or language, except as otherwise provided other attachment to the registration statement E. An electronic filer must provide the signatures required for the registration by this section. If a filing or submission or amendment as permitted by the rules of requires the inclusion of a document the applicable Canadian securities statement or amendment in accordance with administrator. Regulation S–T Rule 302 (17 CFR 232.302). that is in a foreign language, a party K. A paper filer must number sequentially A registrant filing in paper must have at least must submit instead a fair and accurate one signed original of the registration one copy of the registration statement or English translation of the entire foreign statement or amendment (in addition to any amendment signed in accordance with language document, except as provided internal numbering that otherwise may be Securities Act Rule 402(e) (17 CFR by paragraph (d)(3) of this section. present) by handwritten, typed, printed or 230.402(e)) by the persons whose signatures (2) If a filing or submission subject to other legible form of notation from the first are required for this registration statement. A review by the Division of Corporation page through the last page of the registration registrant must also conform the unsigned Finance requires the inclusion of a copies. statement or amendment, including any foreign language document as an exhibit exhibits or attachments. A paper filer must * * * * * disclose the total number of pages on the first or attachment, a party must submit a fair I. A registrant must file the registration and accurate English translation of the page of the sequentially numbered statement or amendment in electronic format foreign language document if consisting registration statement or amendment. in the English language in accordance with * * * * * Regulation S–T Rule 306 (17 CFR 232.306). of any of the following, or an 21. Amend Form F–80 (referenced in A registrant may file part of the prospectus amendment of any of the following: § 239.41), General Instructions IV, by or exhibit or other attachment to the (i) Articles of incorporation, revising paragraphs C., E., I., and J. to registration statement or amendment in both memoranda of association, bylaws, and read as follows: French and English if it included the French other comparable documents, whether text to comply with the requirements of the original or restated; (Note: The text of Form F–80 does not and Canadian securities administrator or other (ii) Instruments defining the rights of the amendments will not appear in the Code Canadian authority and, for an electronic security holders, including indentures of Federal Regulations.) filing, if the filing is an HTML document, as qualified or to be qualified under the OMB Approval defined in Regulation S–T Rule 11 (17 CFR Trust Indenture Act of 1939; OMB Number: 3235–0404 232.11). For both an electronic filing and a (iii) Voting agreements, including Expires: October 31, 2003 paper filing, a registrant may provide an Estimated average burden hours per English translation or English summary of a voting trust agreements; response: 0.5 foreign language document as an exhibit or (iv) Contracts to which directors, officers, promoters, voting trustees or Securities and Exchange Commission other attachment to the registration statement Washington D.C. 20549 or amendment as permitted by the rules of security holders named in a registration the applicable Canadian securities statement, report or other document are Form F–80—Registration Statement Under administrator. parties; the Securities Act of 1933 J. A paper filer must number sequentially (v) Contracts upon which a filer’s * * * * * one signed original of the registration business is substantially dependent; General Instructions statement or amendment (in addition to any (vi) Audited annual and interim internal numbering that otherwise may be * * * * * consolidated financial information; and present) by handwritten, typed, printed or (vii) Any document that is or will be IV. Application of General Rules and other legible form of notation from the first the subject of a confidential treatment Regulations page through the last page of the registration request under § 240.24b–2 or § 230.406 * * * * * statement or amendment, including any exhibits or attachments. A paper filer must of this chapter. C. A registrant must file the registration (3)(i) A party may submit an English statement in electronic format via the disclose the total number of pages on the first Commission’s Electronic Data Gathering, page of the sequentially numbered summary instead of an English Analysis, and Retrieval (EDGAR) system in registration statement or amendment. translation of a foreign language accordance with the EDGAR rules set forth in * * * * * document as an exhibit or attachment to Regulation S–T (17 CFR Part 232). For a filing or submission subject to review assistance with technical questions about PART 240—GENERAL RULES AND by the Division of Corporation Finance, EDGAR or to request an access code, call the REGULATIONS, SECURITIES as long as: EDGAR Filer Support Office at (202) 942– EXCHANGE ACT OF 1934 (A) The foreign language document 8900. For assistance with the EDGAR rules, does not consist of any of the subject call the Office of EDGAR and Information 22. The authority citation for Part 240 matter enumerated in paragraph (d)(2) Analysis at (202) 942–2940. continues to read in part as follows: of this section; or If filing the registration statement in paper under a hardship exemption in Rule 201 or Authority: 15 U.S.C. 77c, 77d, 77g, 77j, (B) The applicable form permits the 202 of Regulation S–T (17 CFR 232.201 or 77s, 77z–2, 77z–3, 77eee, 77ggg, 77nnn, use of an English summary. 232.202), or as otherwise permitted, a 77sss, 77ttt, 78c, 78d, 78e, 78f, 78g, 78i, 78j, (ii) Any English summary submitted registrant must file with the Commission at 78j–1, 78k, 78k–1, 78l, 78m, 78n, 78o, 78p, under paragraph (d)(3) of this section its principal office five copies of the 78q, 78s, 78u–5, 78w, 78x, 78ll, 78mm, 79q, must:

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(A) Fairly and accurately summarize Regulation S–T (17 CFR Part 232). For § 240.14d–102 Schedule 14D–1F. Tender the terms of each material provision of assistance with technical questions about offer statement pursuant to rule 14d–1(b) the foreign language document; and EDGAR or to request an access code, call the under the Securities Exchange Act of 1934. (B) Fairly and accurately describe the EDGAR Filer Support Office at (202) 942– * * * * * 8900. For assistance with the EDGAR rules, terms that have been omitted or General Instructions call the Office of EDGAR and Information abridged. * * * * * (4) When submitting an English Analysis at (202) 942–2940. (2) If filing the Schedule in paper under a II. Filing Instructions and Fees summary or English translation of a hardship exemption in 17 CFR 232.201 or foreign language document under this A.(1) The bidder must file this Schedule 232.202 of Regulation S–T, or as otherwise and any amendment to the Schedule (see Part section, a party must identify the permitted, the issuer must file with the submission as either an English I, Item 1.(b)), including all exhibits and other Commission at its principal office five copies documents filed as part of the Schedule or summary or English translation. A party of the complete Schedule and any amendment, in electronic format via the may submit a copy of the unabridged amendment, including exhibits and all other Commission’s Electronic Data Gathering, foreign language document when documents filed as a part of the Schedule or Analysis, and Retrieval (EDGAR) system in including an English summary or amendment. The issuer must bind, staple or accordance with the EDGAR rules set forth in English translation of a foreign language otherwise compile each copy in one or more Regulation S–T (17 CFR Part 232). For document in a filing or submission. A parts without stiff covers. The issuer must assistance with technical questions about party must provide a copy of any foreign further bind the Schedule or amendment on EDGAR or to request an access code, call the language document upon the request of the side or stitching margin in a manner that EDGAR Filer Support Office at (202) 942– leaves the reading matter legible. The issuer 8900. For assistance with the EDGAR rules, Commission staff. must provide three additional copies of the call the Office of EDGAR and Information (5) A foreign government or its Schedule or amendment without exhibits to Analysis at (202) 942–2940. political subdivision must provide a fair the Commission. (2) If filing the Schedule in paper under a and accurate English translation of its B. An electronic filer must provide the hardship exemption in 17 CFR 232.201 or latest annual budget submitted as signatures required for the Schedule or 232.202 of Regulation S–T, or as otherwise Exhibit B to Form 18 (§ 249.218 of this amendment in accordance with 17 CFR permitted, the bidder must file with the chapter) or Exhibit (c) to Form 18–K 232.302 of Regulation S–T. An issuer filing Commission at its principal office five copies (§ 249.318 of this chapter) only if one is in paper must have the original and at least of the complete Schedule and any available. If no English translation is one copy of the Schedule and any amendment, including exhibits and all other available, a filer must provide a copy of amendment signed in accordance with documents filed as a part of the Schedule or amendment. The bidder must bind, staple or the foreign language version of its latest Exchange Act Rule 12b–11(d) (17 CFR 12b– 11(d)) by the persons whose signatures are otherwise compile each copy in one or more annual budget as an exhibit. parts without stiff covers. The bidder must (6) A Canadian issuer may file an required for this Schedule or amendment. The issuer must also conform the unsigned further bind the Schedule or amendment on exhibit, attachment or other part of a copies. the side or stitching margin in a manner that Form 40–F registration statement or leaves the reading matter legible. The bidder annual report (§ 249.240f of this * * * * * must provide three additional copies of the chapter), Schedule 13E–4F (§ 240.13e– E. The issuer must file the Schedule or Schedule or amendment without exhibits to amendment in electronic format in the the Commission. 102), Schedule 14D–1F (§ 240.14d–102), English language in accordance with 17 CFR or Schedule 14D–9F (§ 240.14d–103), B. An electronic filer must provide the 232.306 of Regulation S–T. The issuer may signatures required for the Schedule or that contains text in both French and file part of the Schedule or amendment, or amendment in accordance with 17 CFR English if the issuer included the exhibit or other attachment to the Schedule 232.302 of Regulation S–T. A bidder filing in French text to comply with the or amendment, in both French and English paper must have the original and at least one requirements of the Canadian securities if the issuer included the French text to copy of the Schedule and any amendment administrator or other Canadian comply with the requirements of the signed in accordance with Exchange Act Rule authority and, for an electronic filing, if Canadian securities administrator or other 12b–11(d) (17 CFR 12b–11(d)) by the persons the filing is an HTML document, as Canadian authority and, for an electronic whose signatures are required for this defined in Regulation S–T Rule 11 (17 filing, if the filing is an HTML document, as Schedule or amendment. The bidder must CFR 232.11). defined in 17 CFR 232.11 of Regulation S– also conform the unsigned copies. T. For both an electronic filing and a paper * * * * * * * * * * filing, the issuer may provide an English 24. Amend § 240.13e–102 by revising E. The bidder must file the Schedule or translation or English summary of a foreign amendment in electronic format in the paragraphs A., B., E., and F. of General language document as an exhibit or other English language in accordance with 17 CFR Instructions II of Schedule 13E–4F to attachment to the Schedule or amendment as 232.306 of Regulation S–T. The bidder may read as follows: permitted by the rules of the applicable file part of the Schedule or amendment, or Canadian securities administrator. exhibit or other attachment to the Schedule § 240.13e–102 Schedule 13E–4F. Tender F. A paper filer must number sequentially or amendment, in both French and English offer statement pursuant to section 13(e)(1) the signed original of the Schedule or if the bidder included the French text to of the Securities Exchange Act of 1934 and amendment (in addition to any internal comply with the requirements of the § 240.13–4 thereunder. numbering that otherwise may be present) by Canadian securities administrator or other * * * * * handwritten, typed, printed or other legible Canadian authority and, for an electronic General Instructions form of notation from the first page through filing, if the filing is an HTML document, as the last page of the Schedule or amendment, * * * * * defined in 17 CFR 232.11 of Regulation S– including any exhibits or attachments. A T. For both an electronic filing and a paper II. Filing Instructions and Fees paper filer must disclose the total number of filing, the bidder may provide an English A.(1) The issuer must file this Schedule pages on the first page of the sequentially translation or English summary of a foreign and any amendment to the Schedule (see Part numbered Schedule or amendment. language document as an exhibit or other I, Item 1.(b)), including all exhibits and other * * * * * attachment to the Schedule or amendment as documents filed as part of the Schedule or permitted by the rules of the applicable amendment, in electronic format via the 25. Amend § 240.14d–102 by revising Canadian securities administrator. Commission’s Electronic Data Gathering, paragraphs A., B., E., and F. of General F. A paper filer must number sequentially Analysis, and Retrieval (EDGAR) system in Instructions II of Schedule 14D–1F to the signed original of the Schedule or accordance with the EDGAR rules set forth in read as follows: amendment (in addition to any internal

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numbering that otherwise may be present) by French and English if the bidder included the about EDGAR or want to request an access handwritten, typed, printed or other legible French text to comply with the requirements code, call the EDGAR Filer Support Office at form of notation from the first page through of the Canadian securities administrator or (202) 942–8900. If you have questions about the last page of the Schedule or amendment, other Canadian authority and, for an the EDGAR rules, call the Office of EDGAR including any exhibits or attachments. A electronic filing, if the filing is an HTML and Information Analysis at (202) 942–2940. paper filer must disclose the total number of document, as defined in 17 CFR 232.11 of (b) If you are filing the Form 20–F pages on the first page of the sequentially Regulation S–T. For both an electronic filing registration statement or annual report in numbered Schedule or amendment. and a paper filing, the subject issuer may paper under a hardship exemption in Rule * * * * * provide an English translation or English 201 or 202 of Regulation S–T (17 CFR 26. Amend § 240.14d–103 by revising summary of a foreign language document as 232.201 or 232.202), or as otherwise General Instructions II of Schedule 14D– an exhibit or other attachment to the permitted, you must file with the Schedule or amendment as permitted by the Commission (i) three complete copies of the 9F to read as follows: rules of the applicable Canadian securities registration statement or report, including § 240.14d–103 Schedule 14D–9F. administrator. financial statements, exhibits and all other Solicitation/recommendation statement D. A paper filer must number sequentially papers and documents filed as part of the pursuant to section 14(d)(4) of the the signed original of the Schedule or registration statement or report, and (ii) five Securities Exchange Act of 1934 and rules amendment (in addition to any internal additional copies of the registration 14d–1(b) and 14e–2(c) thereunder. numbering that otherwise may be present) by statement or report, which need not contain handwritten, typed, printed or other legible exhibits. Whether filing electronically or in * * * * * form of notation from the first page through paper, you must also file at least one General Instructions the last page of the Schedule or amendment, complete copy of the registration statement * * * * * including any exhibits or attachments. A or report, including financial statements, paper filer must disclose the total number of exhibits and all other papers and documents II. Filing Instructions pages on the first page of the sequentially filed as part of the registration statement or A.(1) The subject issuer must file this numbered Schedule or amendment. report, with each exchange on which any Schedule and any amendment to the * * * * * class of securities is or will be registered. Schedule (see Part I, Item 1.(b)), including all When submitting the Form 20–F in paper, exhibits and other documents filed as part of PART 249—FORMS, SECURITIES you must sign at least one complete copy of the Schedule or amendment, in electronic EXCHANGE ACT OF 1934 the registration statement or report filed with format via the Commission’s Electronic Data the Commission and one copy filed with Gathering, Analysis, and Retrieval (EDGAR) 27. The authority citation for Part 249 each exchange in accordance with Exchange system in accordance with the EDGAR rules continues to read in part as follows: Act Rule 12b–11(d) (17 CFR 12b–11(d)). You set forth in Regulation S–T (17 CFR Part 232). must conform the unsigned copies when For assistance with technical questions about Authority: 15 U.S.C. 78a, et seq., unless submitting the Form 20–F registration EDGAR or to request an access code, call the otherwise noted; statement or report in paper. When EDGAR Filer Support Office at (202) 942– * * * * * submitting the Form 20–F in electronic 8900. For assistance with the EDGAR rules, 28. Amend Form 20–F (referenced in format to the Commission, you may submit call the Office of EDGAR and Information § 249.220f) by revising General a paper copy containing typed signatures to Analysis at (202) 942–2940. Instruction D. and the first three each United States stock exchange in (2) If filing the Schedule in paper under a paragraphs of the Instructions as to accordance with Regulation S–T Rule 302(c) hardship exemption in 17 CFR 232.201 or Exhibits to read as follows: (17 CFR 302(c)). See also Exchange Act Rule 232.202 of Regulation S–T, or as otherwise 12b–12(d) and Form 20–F’s Instructions as to permitted, the subject issuer must file with (Note: The text of Form 20–F does not and Exhibits for requirements concerning use of the Commission at its principal office five the amendment will not appear in the Code the English language and treatment of foreign copies of the complete Schedule and any of Federal Regulations.) language documents. amendment, including exhibits and all other OMB Approval (c) When registration statements and documents filed as a part of the Schedule or OMB Number: 3235–0288 reports are permitted to be filed in paper, amendment. The subject issuer must bind, Expires: January 31, 2005 they are filed with the Commission by staple or otherwise compile each copy in one Estimated average burden hours per sending or delivering them to our File Desk or more parts without stiff covers. The response: 431.0 between the hours of 9 a.m. and 5:30 p.m., subject issuer must further bind the Schedule United States Securities and Exchange Washington, DC time. The File Desk is closed or amendment on the side or stitching margin Commission on weekends and federal holidays. If you file in a manner that leaves the reading matter a paper registration statement or report by legible. The subject issuer must provide three Washington, D.C. 20549 mail or by any means other than hand additional copies of the Schedule or Form 20–F delivery, the address is U.S. Securities and amendment without exhibits to the Exchange Commission, Attention: File Desk, Commission. * * * * * 450 Fifth Street, NW., Washington, DC B. An electronic filer must provide the General Instructions 20549. We consider documents to be filed on signatures required for the Schedule or * * * * * the date our File Desk receives them. amendment in accordance with 17 CFR * * * * * 232.302 of Regulation S–T. A subject issuer D. How To File Registration Statements and filing in paper must have the original and at Reports on This Form Instructions as to Exhibits least one copy of the Schedule and any (a) You must file the Form 20–F File the exhibits listed below as part of an amendment signed in accordance with registration statement or annual report in Exchange Act registration statement or Exchange Act Rule 12b–11(d) (17 CFR 12b– electronic format via our Electronic Data report. Exchange Act Rule 12b–32 explains 11(d)) by the persons whose signatures are Gathering and Retrieval System (EDGAR) in the circumstances in which you may required for this Schedule or amendment. accordance with the EDGAR rules set forth in incorporate exhibits by reference. Exchange The subject issuer must also conform the Regulation S–T (17 CFR Part 232). The Form Act Rule 24b–2 explains the procedure to be unsigned copies. 20–F registration statement or annual report followed in requesting confidential treatment C. The subject issuer must file the must be in the English language as required of information required to be filed. Schedule or amendment in electronic format by Regulation S–T Rule 306 (17 CFR Previously filed exhibits may be in the English language in accordance with 232.306). You must provide the signatures incorporated by reference. If any previously 17 CFR 232.306 of Regulation S–T. The required for the Form 20–F registration filed exhibits have been amended or subject issuer may file part of the Schedule statement or annual report in accordance modified, file copies of the amendment or or amendment, or exhibit or other attachment with Regulation S–T Rule 302 (17 CFR modification or copies of the entire exhibit as to the Schedule or amendment, in both 232.302). If you have technical questions amended or modified.

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If the Form 20–F registration statement or the applicable Canadian securities Securities Act Rule 801 (Rights Offering) b annual report requires the inclusion, as an administrator. Securities Act Rule 802 (Exchange Offer) b exhibit or attachment, of a document that is * * * * * Securities Act Rule 13e–4(h)(8) (Issuer in a foreign language, you must provide Tender Offer) b D. Application of General Rules and instead either an English translation or an Exchange Act Rule 14d–1(c) (Third Party Regulations English summary of the foreign language Tender Offer) b document in accordance with Exchange Act * * * * * Exchange Act Rule 14e–2(d) (Subject Rule 12b–12(d) (17 CFR 240.12b–12(d)) for (7) A filer must file the Form 40–F Company Response) b both electronic and paper filings. You may registration statement or annual report in Filed or submitted in paper if permitted by submit a copy of the unabridged foreign electronic format via the Commission’s Regulation S–T Rule 101(b)(8) b language document along with the English Electronic Data Gathering, Analysis, and Note: Regulation S–T Rule 101(b)(8) only translation or summary as permitted by Retrieval (EDGAR) system in accordance permits the filing or submission of a Form CB Regulation S–T Rule 306(b) (17 CFR with the EDGAR rules set forth in Regulation in paper by a party that is not subject to the 232.306(b)) for electronic filings or by S–T (17 CFR Part 232). For assistance with reporting requirements of Section 13 or 15(d) Exchange Act Rule 12b–12(d)(4) (17 CFR technical questions about EDGAR or to of the Exchange Act. request an access code, call the EDGAR Filer 240.12b–12(d)(4)) for paper filings. * * * * * Include an exhibit index in each Support Office at (202) 942–8900. For registration statement or report you file, assistance with the EDGAR rules, call the General Instructions immediately preceding the exhibits you are Office of EDGAR and Information Analysis at * * * * * (202) 942–2940. filing. The exhibit index must list each If filing the Form 40–F registration II. Instructions for Submitting Form exhibit according to the number assigned to statement or annual report in paper under a it below. If an exhibit is incorporated by A. (1) If the party filing or submitting the hardship exemption in Rule 201 or 202 of reference, note that fact in the exhibit index. Form CB has reporting obligations under Regulation S–T (17 CFR 232.201 or 232.202), For paper filings, the pages of the manually Exchange Act Section 13 or 15(d), Regulation or as otherwise permitted, a filer must file S–T Rule 101(a)(1)(vi) (17 CFR signed original registration statement should with the Commission at its principal office 232.101(a)(1)(vi)) requires the submission of be numbered in sequence, and the exhibit five copies of the complete registration the Form CB in electronic format via the index should give the page number in the statement or annual report, including Commission’s Electronic Data Gathering and sequential numbering system where each exhibits and all other documents filed as a Retrieval System (EDGAR) in accordance exhibit can be found. part of the registration statement or annual with the EDGAR rules set forth in Regulation * * * * * report. The filer must bind, staple or S–T (17 CFR Part 232). For assistance with 29. Amend Form 40–F (referenced in otherwise compile each copy in one or more technical questions about EDGAR or to parts without stiff covers. The filer must § 249.240f) by revising paragraph (4) of request an access code, call the EDGAR Filer further bind the registration statement or Support Office at (202) 942–8900. For General Instruction B. and paragraphs annual report on the side or stitching margin assistance with the EDGAR rules, call the (7) and (8) of General Instruction D. to in a manner that leaves the reading matter Office of EDGAR and Information Analysis at read as follows: legible. The filer must provide three (202) 942–2940. additional copies of the registration (Note: The text of Form 40–F does not and (2) If the party filing or submitting the statement or annual report without exhibits the amendment will not appear in the Code Form CB is not an Exchange Act reporting to the Commission. of Federal Regulations.) company, Regulation S–T Rule 101(b)(8) (17 CFR 232.101(b)(8)) permits the submission of OMB Approval * * * * * the Form CB either via EDGAR or in paper. OMB Number: 3235–0381 (8) An electronic filer must provide the signatures required for the Form 40–F When filing or submitting the Form CB in Expires: March 31, 2003 registration statement or annual report in electronic format, either voluntarily or as a Estimated average burden hours per accordance with Regulation S–T Rule 302 (17 mandated EDGAR filer, a party must also file response: 0.5 CFR 232.302). A paper filer must have at or submit on EDGAR all home jurisdiction U.S. Securities and Exchange Commission least one copy of the Form 40–F registration documents required by Parts I and II of this Form, except as provided by the Note Washington, D.C. 20549 statement or annual report signed by an officer authorized to sign the registration following paragraph (2) of Part II. Form 40–F statement or annual report. A paper filer (3) A party may also file a Form CB in * * * * * must also conform the unsigned copies. paper under a hardship exemption provided by Regulation S–T Rule 201 or 202 (17 CFR General Instructions * * * * * 30. Amend Form CB (referenced in 232.201 or 232.202). When submitting a * * * * * Form CB in paper under a hardship § 239.800 and § 249.480) by revising the exemption, a party must provide the legend B. Information To Be Filed on This Form cover page, paragraphs A., B., and D. of required by Regulation S–T Rule 201(a)(2) or * * * * * General Instructions II, and paragraphs 202(c) (17 CFR 232.201(a)(2) or 232.202(c)) (4) A filer must file the Form 40–F (1), (2), and (3) of Part II to read as on the cover page of the Form CB. registration statement or annual report in follows: (4) If filing the Form CB in paper in electronic format in the English language in (Note: The text of Form CB does not and the accordance with Rule 101(b)(8) or a hardship accordance with Regulation S–T Rule 306 (17 exemption, you must furnish five copies of CFR 232.306). A filer may file part of an amendment will not appear in the Code of Federal Regulations.) this Form and any amendment to the Form exhibit or other attachment to the Form 40– (see Part I, Item 1.(b)), including all exhibits F registration statement or annual report in OMB Approval and any other paper or document furnished both French and English if it included the OMB Number: 3235–0518 Expires: March as part of the Form, to the Commission at its French text to comply with the requirements 31, 2005 Estimated average burden hours principal office. You must bind, staple or of the Canadian securities administrator or per response: 2.0 otherwise compile each copy in one or more other Canadian authority and, for an United States Securities and Exchange parts without stiff covers. You must make the electronic filing, if the filing is an HTML Commission binding on the side or stitching margin in a document, as defined in Regulation S–T Rule Washington, D.C. 20549 manner that leaves the reading matter legible. 11 (17 CFR 232.11). For both an electronic B. When submitting the Form CB in filing and a paper filing, a filer may provide Form CB—Tender Offer/Rights Offering electronic format, the persons specified in an English translation or English summary of Notification Form (Amendment No. ll) Part IV must provide signatures in a foreign language document as an exhibit or Please place an X in the box(es) to accordance with Regulation S–T Rule 302 (17 other attachment to the registration statement designate the appropriate rule provision(s) CFR 232.302). When submitting the Form CB or amendment as permitted by the rules of relied upon to file this Form: in paper, the persons specified in Part IV

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must sign the original and at least one copy OMB Number: 3235–0116 set forth in Regulation S–T (17 CFR Part 232) of the Form and any amendments. You must Expires: March 31, 2003 except as discussed below. An issuer conform any unsigned copies. The specified Estimated average burden hours per submitting the Form 6–K in electronic format persons may provide typed or facsimile response: 2.0 must provide the signatures required for the signatures in accordance with Securities Act Form 6–K Form 6–K report in accordance with Rule 402(e) (17 CFR 230.402(e)) or Exchange Regulation S–T Rule 302 (17 CFR 232.302). Act Rule 12b–11(d) (17 CFR 240.12b–11(d)) Securities and Exchange Commission For assistance with technical questions about as long as the filer retains copies of EDGAR or to request an access code, call the Washington, D.C. 20549 signatures manually signed by each of the EDGAR Filer Support Office at (202) 942– specified persons for five years. Report of Foreign Private Issuer 8900. For assistance with the EDGAR rules, * * * * * call the Office of EDGAR and Information Pursuant to Rule 13a–16 or 15d–16 Under the Analysis at (202) 942–2940. D. If filing in paper, in addition to any Securities Exchange Act of 1934 internal numbering you may include, (2) An issuer may submit a Form 6–K in lll ll sequentially number the signed original of For the month of , 20 paper under: llll • the Form and any amendments by Commission File Number Regulation S–T Rule 101(b)(1) (17 CFR handwritten, typed, printed or other legible lllllllllllllllllllll 232.101(b)(1)) if the sole purpose of the Form form of notation from the first page of the (Translation of registrant’s name into 6–K is to furnish an annual report to security holders; document through the last page of the English) • document and any exhibits or attachments. lllllllllllllllllllll Regulation S–T Rule 101(b)(7) to provide Further, you must set forth the total number (Address of principal executive offices) a report or other document that the issuer must furnish and make public under the laws of pages contained in a numbered original on Indicate by check mark whether the the first page of the document. of the jurisdiction in which it is registrant files or will file annual reports incorporated, domiciled or legally organized * * * * * under cover of Form 20–F or Form 40–F: (the issuer’s ‘‘home country’’), or under the ll ll Part II—Information Not Required To Be Sent Form 20–F Form 40–F rules of the home country exchange on which to Security Holders Indicate by check mark if the registrant is the issuer’s securities are traded, as long as submitting the Form 6–K in paper as * * * * * the report or other document is not a press permitted by Regulation S–T Rule 101(b)(1): release, is not required to be and has not been (1) Furnish to the Commission either an ll English translation or English summary of distributed to the issuer’s security holders, Note: Regulation S–T Rule 101(b)(1) only any reports or information that, in and, if discussing a material event, including permits the submission in paper of a Form accordance with the requirements of the the disclosure of annual audited or interim 6–K if submitted solely to provide an home jurisdiction, must be made publicly consolidated financial results, has already attached annual report to security holders. available in connection with the transaction been the subject of a Form 6–K submission Indicate by check mark if the registrant is or other Commission filing on EDGAR; or but need not be disseminated to security • holders. Any English summary submitted submitting the Form 6–K in paper as A hardship exemption provided by must meet the requirements of Regulation S– permitted by Regulation S–T Rule 101(b)(7): Regulation S–T Rule 201 or 202 (17 CFR T Rule 306(a) (17 CFR 232.306(a)) if ll 232.201 or 232.202). submitted electronically or of Securities Act Note: Regulation S–T Rule 101(b)(7) only Note to paragraph (2): An issuer that is or Rule 403(c)(3) (17 CFR 230.403(c)(3)) or permits the submission in paper of a Form will be incorporating by reference all or part Exchange Act Rule 12b–12(d)(3) (17 CFR 6–K if submitted to furnish a report or other of an annual or other report to security 240.12b–12(d)(3)) if submitted in paper. document that the registrant foreign private holders, or of any part of a paper Form 6– (2) Furnish copies of any documents issuer must furnish and make public under K, into an electronic filing must file the incorporated by reference into the home the laws of the jurisdiction in which the incorporated portion in electronic format as jurisdiction document(s). registrant is incorporated, domiciled or an exhibit to the filing in accordance with Regulation S–T Rule 303(b) (17 CFR Note to paragraphs (1) and (2) of Part II: legally organized (the registrant’s ‘‘home 232.303(b)). In accordance with Regulation S–T Rule country’’), or under the rules of the home 311(f) (17 CFR 232.311(f)), a party may country exchange on which the registrant’s (3) When submitting a Form 6–K in paper securities are traded, as long as the report or submit a paper copy under cover of Form SE under one of the above rules, an issuer must other document is not a press release, is not (17 CFR 239.64, 249.444, 259.603, 269.8, and check the appropriate box on the cover page required to be and has not been distributed 274.403) of an unabridged foreign language of the Form 6–K. When submitting a Form 6– to the registrant’s security holders, and, if document when submitting an English K in paper under a hardship exemption, an discussing a material event, has already been summary in electronic format under issuer must provide the legend required by the subject of a Form 6–K submission or paragraph (1) of this Part or when furnishing Regulation S–T Rule 201(a)(2) or 202(c) (17 other Commission filing on EDGAR. a foreign language document that has been CFR 232.201(a)(2) or 232.202(c)) on the cover incorporated by reference under paragraph Indicate by check mark whether by page of the Form 6–K. (2) of this Part. furnishing the information contained in this (4) An issuer furnishing the Form 6–K in Form, the registrant is also thereby furnishing paper under one of the above rules, or as (3) If any of the persons specified in Part the information to the Commission pursuant otherwise permitted by the Commission, IV has signed the Form CB under a power of to Rule 12g3–2(b) under the Securities must deposit with the Commission eight attorney, a party submitting the Form CB in Exchange Act of 1934. complete copies of the Form 6–K report. An electronic format must include a copy of the Yes ll No ll issuer must also file at least one complete power of attorney signed in accordance with If ‘‘Yes’’ is marked, indicate below the file copy of the Form 6–K with each United Regulation S–T Rule 302 (17 CFR 232.302). number assigned to the registrant in States stock exchange on which any security A party submitting the Form CB in paper connection with Rule 12g3–2(b): 82–ll of the issuer is listed and registered under must also include a copy of the signed power * * * * * Section 12(b) of the Exchange Act. The issuer of attorney. must have signed at least one of the paper * * * * * General Instructions copies deposited with the Commission and 31. Amend Form 6–K (referenced in * * * * * one filed with each United States stock § 249.306) by revising the cover page C. Preparation and Filing of Report. (1) The exchange in accordance with Exchange Act and General Instructions C. and D. to Form 6–K report shall consist of a cover page, Rule 12b–11(d) (17 CFR 240.12b–11(d)) when read as follows: the report or document furnished by the submitting the Form 6–K in paper to the issuer, and a signature page. An issuer must Commission. An issuer submitting the Form (Note: The text of Form 6–K does not and the submit the Form 6–K report in electronic 6–K in paper must also conform the unsigned amendments will not appear in the Code of format via the Commission’s Electronic Data copies. When submitting the Form 6–K in Federal Regulations.) Gathering, Analysis, and Retrieval (EDGAR) electronic format to the Commission, an OMB Approval system in accordance with the EDGAR rules issuer may submit a paper copy containing

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typed signatures to each United States stock or prospectus that pertains solely to a foreign United States exchange in accordance with Regulation S– offering, even when an English translation or T Rule 302(c) (17 CFR 232.302(c)). English summary is available, if the issuer Securities and Exchange Commission D. Treatment of Foreign Language has already submitted a Form 6–K or filed a Washington, D.C. 20549 Documents. (1) An issuer must submit the Form 20–F or other Commission filing on Form F–X—Appointment of Agent for Form 6–K report in electronic format in the EDGAR that reported material information Service of Process and Undertaking English language in accordance with disclosed in the offering circular or Regulation S–T Rule 306 (17 CFR 232.306) prospectus. If an issuer has not previously * * * * * and Exchange Act Rule 12b–12(d) (17 CFR disclosed this material information to the General Instructions 240.12b–12(d)), as referenced in Regulation Commission, it may submit in electronic * * * * * S–T Rule 306(a) (17 CFR 232.306(a)), except format under cover of Form 6–K an English as otherwise provided by this Form. An translation or English summary of the portion II. issuer submitting the Form 6–K in paper of the foreign offering circular or prospectus must meet the requirements of Exchange Act * * * * * that discusses the new material information. B. (1) This is [check one]: Rule 12b–12(d) (17 CFR 240.12b–12(d)). In (4) Any submitted English summary must b An original filing for the Filer accordance with, or in addition to, the list of meet the requirements of Exchange Act Rule b documents specified in Exchange Act Rule 12b–12(d)(3)(ii) (17 CFR 240.12b– An amended filing for the Filer 12b–12(d)(2) (17 CFR 240.12b–12(d)(2)), an 12(d)(3)(ii)). An issuer may submit the (2) Check the following box if you are filing issuer must provide a full English translation unabridged foreign language report or other the Form F–X in paper in accordance with of the following documents furnished under document along with the English summary or Regulation S–T Rule 101(b)(9) b. cover of Form 6–K whether submitted English translation as permitted by electronically or in paper: Note: Regulation S–T Rule 101(b)(9) only • Press releases; Regulation S–T Rule 306(b) (17 CFR permits the filing of the Form F–X in paper: • Communications and other documents 232.306(b)) for electronic filings and (a) If the party filing or submitting the Exchange Act Rule 12b–12(d)(4) (17 CFR distributed directly to security holders for Form CB is not subject to the reporting 240.12b–12(d)(4)) for paper filings. each class of securities to which a reporting requirements of Section 13 or 15(d) of the obligation under Exchange Act Section 13(a) PART 269—FORMS PRESCRIBED Exchange Act; or or 15(d) pertains, except for offering circulars (b) If filed by a Canadian issuer when and prospectuses that relate entirely to UNDER THE TRUST INDENTURE ACT qualifying an offering statement pursuant to securities offerings outside the United States OF 1939 the provisions of Regulation A (230.251— (‘‘foreign offerings’’); and • Documents disclosing annual audited or 32. The authority citation for Part 269 230.263 of this chapter). interim consolidated financial information. continues to read as follows: (3) A filer may also file the Form F–X in (2) In addition to the documents specified paper under a hardship exemption provided in Exchange Act Rule 12b–12(d)(3) (17 CFR Authority: 15 U.S.C. 77ddd(c), 77eee, by Regulation S–T Rule 201 or 202 (17 CFR 240.12b–12(d)(3)), an issuer may furnish 77ggg, 77hhh, 77iii, 77jjj, 77sss, 78ll(d), 232.201 or 232.202). When submitting the unless otherwise noted. under cover of Form 6–K, whether submitted Form F–X in paper under a hardship electronically or in paper, an English 33. Amend Form F–X (referenced in exemption, a filer must provide the legend summary instead of a full English translation required by Regulation S–T Rule 201(a)(2) or of a report required to be furnished and made §§ 239.42, 249.250 and 269.5), General 202(c) (17 CFR 232.201(a)(2) or 232.202(c)) public under the laws of the issuer’s home Instructions II, by revising paragraph B. on the cover page of the Form F–X. country or the rules of the issuer’s home to read as follows: country stock exchange, as long as it is not * * * * * a press release and is not required to be and (Note: The text of Form F–X does not and the Dated: May 14, 2002. has not been distributed to the issuer’s amendment will not appear in the Code of security holders. Such a document may Federal Regulations.) By the Commission. include a report disclosing unconsolidated OMB Approval Margaret H. McFarland, OMB Number: 3235–0379 financial information about a parent Deputy Secretary. company. Expires: June 30, 2003 (3) An issuer is not required to submit Estimated average burden hours per [FR Doc. 02–12566 Filed 5–23–02;8:45am] under cover of Form 6–K an offering circular response: 2.0 BILLING CODE 8010–01–P

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Part III

Securities and Exchange Commission 17 CFR Part 230, et al. Proposed Amendments to Investment Company Advertising Rules; Proposed Rule

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SECURITIES AND EXCHANGE Commission’s Internet site (http:// I. Introduction and Background 1 COMMISSION www.sec.gov). Like most issuers of securities, when FOR FURTHER INFORMATION CONTACT: an investment company (‘‘fund’’) offers 17 CFR Parts 230, 239, 270, and 274 Christopher P. Kaiser, Attorney, David its shares to the public, its promotional S. Schwartz, Attorney, or Paul G. efforts become subject to the advertising [Release Nos. 33–8101; 34–45953; IC– Cellupica, Assistant Director, at (202) restrictions of the Securities Act. 25575; File No. S7–17–02] 942–0721, Office of Disclosure Congress imposed these restrictions so Regulation, Division of Investment that investors would base their RIN 3235–AH19 Management, Securities and Exchange investment decisions on the full Commission, 450 5th Street, NW., disclosures contained in the ‘‘statutory Proposed Amendments to Investment Washington, DC 20549–0506. prospectus,’’ which Congress intended Company Advertising Rules SUPPLEMENTARY INFORMATION: The to be the primary selling document.2 Securities and Exchange Commission The advertising restrictions of the AGENCY: Securities and Exchange (‘‘Commission’’) is proposing for Securities Act cause special problems Commission. comment amendments to rule 134 [17 for many investment companies, ACTION: Proposed rule. CFR 230.134], rule 156 [17 CFR particularly for open-end management 230.156], and rule 482 [17 CFR 230.482] investment companies (‘‘mutual funds’’) SUMMARY: The Securities and Exchange under the Securities Act of 1933 [15 and other investment companies that 3 Commission is proposing rule and form U.S.C. 77a et seq.] (‘‘Securities Act’’) continuously offer and sell their shares. amendments under the Securities Act of and rule 34b-1 [17 CFR 270.34b-1] For these funds, the advertising 1933 and the Investment Company Act under the Investment Company Act of restrictions apply continuously because of 1940 to provide registered investment 1940 [15 U.S.C. 80a-1 et seq.] the offering process, in effect, is companies and business development (‘‘Investment Company Act’’). The continuous. companies with the ability to disclose Commission also is proposing for In recognition of these problems, the more timely information in comment technical amendments to Commission has adopted special advertisements and to reinforce the Form N–1A [17 CFR 239.15A and advertising rules for investment antifraud protections that apply to 274.11A], Form N–3 [17 CFR 239.17a companies. The most important of these investment company advertisements. and 274.11b], Form N–4 [17 CFR is rule 482 under the Securities Act, The proposed amendments would 239.17b and 274.11c], and Form N–6 [17 which permits investment companies to implement a provision of the National CFR 239.17c and 274.11d], registration advertise investment performance data, 4 Securities Markets Improvement Act of forms used by investment companies to as well as other information. Rule 482 1996 by permitting the use of a register under the Investment Company advertisements are ‘‘prospectuses’’ prospectus under section 10(b) of the Act and to offer their securities under under section 10(b) of the Securities Act 5 Securities Act with respect to securities the Securities Act. (so-called ‘‘omitting prospectuses’’), which means that, historically, they issued by an investment company that Table of Contents includes information the substance of I. Introduction and Background 2 ‘‘Statutory prospectus’’ refers to the full which is not included in the investment A. Fund Advertising Rules prospectus required by Section 10(a) of the company’s statutory prospectus. The B. Performance Advertising Practices Securities Act. 15 U.S.C. 77j(a). proposed amendments also would II. Discussion 3 An open-end management investment company require enhanced disclosure in A. Eliminating the ‘‘Substance of Which’’ (‘‘mutual fund’’) is an investment company, other investment company advertisements Requirement from Rule 482 and than a unit investment trust or face-amount certificate company, that offers for sale or has and are designed to encourage Rescinding Rule 134 for Funds B. Applicability of Antifraud Provisions to outstanding any redeemable security of which it is advertisements that convey balanced Fund Advertising the issuer. Sections 4 and 5(a)(1) of the Investment Company Act [15 U.S.C. 80a–4 and 80a–5(a)(1)]. information to prospective investors, C. Enhanced Disclosure under Rule 482 particularly with respect to past Mutual funds typically offer and sell their shares D. Reorganization of Rule 482 and continuously to provide an ongoing flow of capital performance. Technical Form Amendments into their portfolios and to enable them to meet E. Compliance Date redemption requests from outgoing shareholders. DATES: Comments must be received on IV. Request for Comments A unit investment trust (‘‘UIT’’) is ‘‘an investment or before July 31, 2002. A. Request for Comments on the company which (A) is organized under a trust Framework for Regulation of Investment indenture, contract of custodianship or agency, or ADDRESSES: Comments should be Company Advertisements similar instrument, (B) does not have a board of submitted in triplicate to Jonathan G. B. General Request for Comments directors, and (C) issues only redeemable securities, Katz, Secretary, Securities and Exchange each of which represents an undivided interest in C. Request for Comments on Rule a unit of specified securities; but does not include Commission, 450 5th Street, NW., 482(a)(5)(i) Relating to Variable a voting trust.’’ Section 4(2) of the Investment Washington, DC 20549–0609. Insurance Contracts Company Act [15 U.S.C. 80a–4(2)]. UITs typically Comments also may be submitted V. Cost/Benefit Analysis have active secondary markets in which the trusts’ electronically at the following E-mail VI. Consideration of Effects on Efficiency, sponsors are continuously purchasing and selling Competition, and Capital Formation the trusts’ units. address: [email protected]. All A face-amount certificate is a security that comment letters should refer to File No. VII. Paperwork Reduction Act VIII. Initial Regulatory Flexibility Analysis obligates the issuer to pay a stated (or determinable) S7–17–02; this file number should be IX. Consideration of Impact on the Economy amount on a fixed (or determinable) date or series included on the subject line if E-mail is of dates more than twenty-four months after the X. Statutory Authority date of issuance. Section 2(a)(15) of the Investment used. All comments received will be Text of Proposed Rule and Form Company Act [15 U.S.C. 80a–2(a)(15)]. A face- available for public inspection and Amendments amount certificate company is an investment copying in the Commission’s Public company that engages or proposes to engage in the Reference Room, 450 5th Street, NW., 1 We do not edit personal, identifying business of issuing certain face-amount certificates. Washington, DC 20549–0102. information, such as names or E-mail addresses, Section 4(1) of the Investment Company Act [15 from electronic submissions. Submit only U.S.C. 80a–4(1)]. Electronically submitted comment information that you wish to make publicly 4 17 CFR 230.482. letters will also be posted on the available. 5 15 U.S.C. 77j(b).

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could only contain information the that create unrealistic investor to a security, generally must be in the ‘‘substance of which’’ is included in the expectations or may mislead potential form of a section 10 prospectus.15 statutory prospectus.6 In the National investors. There is a limited exception to the general requirement that written and Securities Markets Improvement Act of The Commission has undertaken a 1996 (‘‘NSMIA’’), Congress amended the radio or television offers after the filing series of initiatives to address trends in Investment Company Act to permit, of a registration statement must be in the area of performance advertising. We subject to rules adopted by the the form of a section 10 prospectus. So- Commission, the use of prospectuses have engaged in education efforts to called ‘‘supplemental sales literature’’ under section 10(b) of the Securities Act caution investors against the dangers of may be used after the effective date of that include information the substance chasing fund performance and focusing a registration statement if accompanied of which is not included in the statutory only on short-term asset growth.10 Our or preceded by the statutory prospectus.7 Today, we are proposing to staff has conducted a special review of prospectus.16 In addition, the use of amend rule 482 and make other related fund marketing materials, as well as ‘‘tombstone’’ advertisements is rule and form changes to implement this examinations of funds that have permitted under limited circumstances legislation, which will provide funds employed aggressive marketing without prior delivery of the statutory with the ability to include more timely practices.11 And we have instituted prospectus.17 information in their advertisements, enforcement actions based on The advertising restrictions of the e.g., information about current misleading fund advertising.12 Today’s Securities Act cause special problems economic conditions that normally proposed amendments are part of our for many investment companies. Unlike would not be included in a fund’s continuing efforts to raise the bar for typical corporate issuers that generally prospectus. The proposed amendment fund performance advertising so that offer their shares only periodically, will also permit funds to eliminate from investors are informed, and not misled, mutual funds typically offer and sell their shares continuously to provide an the statutory prospectus boilerplate by that advertising. disclosure that clutters the statutory ongoing flow of capital into their prospectus and obscures other A. Fund Advertising Rules portfolios and to enable them to meet important information. redemption requests from outgoing At the same time, we are proposing Section 5 of the Securities Act shareholders. Unit investment trusts amendments to the fund advertising contains prohibitions regarding the (‘‘UITs’’) typically have active rules that are intended to reinforce dissemination of written selling material secondary markets in which the trusts’ antifraud protections and encourage the to investors during the offering period. sponsors are continuously purchasing provision of information to investors Section 5(b)(1) makes it unlawful to use and selling the trusts’ units. For mutual that is more balanced and informative, interstate commerce to transmit any funds and UITs, the advertising particularly in the area of investment prospectus relating to a security with restrictions apply continuously because performance. Many funds experienced respect to which a registration statement the offering process, in effect, is extraordinary performance during 1999 has been filed unless the prospectus continuous. In recognition of this issue, and 2000, particularly funds investing meets the requirements of section 10 of the Commission has adopted special in technology and Internet stocks.8 the Securities Act.13 ‘‘Prospectus’’ is advertising rules for investment Eager to attract new investors, many of broadly defined in section 2(a)(10) to companies. these funds engaged in advertising include any advertisement or other Rule 482 campaigns focusing on past communication, ‘‘written or by radio or The Commission adopted rule 482 performance.9 We became concerned television, which offers any security for under the authority of section 10(b) of that some funds, when advertising their sale or confirms the sale of any the Securities Act, which permits the performance, may resort to techniques 14 security.’’ Thus, advertisements are Commission to adopt rules that provide considered prospectuses under the 6 for a prospectus that ‘‘omits in part’’ or 17 CFR 230.482(a)(2). Securities Act if they offer a security for 7 National Securities Markets Improvement Act of ‘‘summarizes’’ information contained in 18 1996, Pub. L. No. 104–290, 110 Stat. 3416, 3428, sale. Because the term ‘‘offer’’ is defined the statutory prospectus. Rule 482 Section 204. and interpreted broadly to encompass 8 In 1999, for example, more than 200 funds had any attempt to procure orders for a 15 Section 2(a)(3) of the Securities Act defines the returns of more than 200 percent. Gavin Daly, SEC security, written and radio or television term ‘‘offer’’ to include ‘‘every attempt or offer to Reviewing Performance-Based Ads (Mar. 29, 2000) dispose of, or solicitation of an offer to buy, a (visited June 13, 2000) http://www.ignites.com/. In advertisements relating to a security, or security or interest in a security, for value.’’ 15 particular, funds investing in technology and aiding in the selling effort with respect U.S.C. 77b(a)(3). Internet stocks achieved unusually high returns. 16 Under section 2(a)(10) of the Securities Act, Humberto Cruz, Don’t Let Numbers Mislead, Sun- supplemental sales literature is not considered to be 10 See Securities and Exchange Commission, Sentinel, Feb. 13, 2000, at 5F. a prospectus and, as a result, is not subject to Mutual Fund Investing: Look at More Than a Fund’s 9 See Cruz, supra note 8 (stating that ‘‘[y]ou can’t section 5(b)(1) of the Securities Act. Past Performance (last modified Jan. 24, 2000) pick up a financial magazine these days or tune in 17 ‘‘Tombstone’’ advertisements are permitted by http://www.sec.gov/investor/pubs/mfperform.htm. to financial television without running into mutual 11 section 2(a)(10)(b) of the Securities Act, which fund ads like * * * ‘Heavenly,’ ‘We’re Still Securities and Exchange Commission, provides that an advertisement or other Celebrating,’ ‘With Performance Like This,’ [and] Supplementary News Material: Special Review of communication in respect of a security shall not be ‘Operators Are Standing By.’’’); Tony Lystra, Fund Fund Advertising Fact Sheet (last modified Feb. 23, deemed a prospectus: If it states from whom a Advertising Spending Jumped in 2000, Mutual 2001) http://www.sec.gov/news/extra/funadfct.htm; written prospectus meeting the requirements of Fund Market News, Apr. 23, 2001 (‘‘Mutual fund Paul F. Roye, Director, Division of Investment section 10 may be obtained and, in addition, does companies spent 22 percent more on advertising [in Management, ‘‘Challenges for the Mutual Fund no more than identify the security, state the price 2000] than in 1999 as they touted their products’ Industry in the Competitive Frontier,’’ Remarks at thereof, state by whom orders will be executed, and improved performance in a bull market.’’); Simon the 2000 Mutual Funds and Investment contain such other information as the Commission, London, The Managers Who Mislead Us: Controls Management Conference, Palm Desert, Ca. (Mar. 27, by rules or regulations deemed necessary or Are Needed to Stop Absolute Performance Statistics 2000) (transcript available at http://www.sec.gov/ appropriate in the public interest and for the Being Quoted Out Of Context, The Financial Times, news/speech/speecharchive/200speech.shtml). protection of investors * * * may permit. 15 U.S.C. Mar. 11, 2000, at 6 (‘‘[T]he strength of world equity 12 For a discussion of these enforcement actions, 77b(a)(10)(b). markets over the past decade has given managers see note 39 infra and accompanying text. 18 15 U.S.C. 77j(b). See also Investment Company some unusually eye-catching statistics to play 13 15 U.S.C. 77e(b)(1). Act Release No. 10852 (Aug. 31, 1979) [44 FR 52816 with.’’). 14 15 U.S.C. 77b(a)(10). Continued

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permits registered investment of rule 482 is not a safe harbor against information that a fund may include in companies and business development antifraud liability.24 its tombstone advertisements.27 Today, companies to advertise any information funds may advertise a broad range of Rule 134 ‘‘the substance of which’’ is included in information under rule 134, other than the statutory prospectus.19 The theory In contrast to rule 482, rule 134 is a performance information. behind the ‘‘substance of which’’ content-based rule that specifies certain Because the Commission adopted rule requirement is that an advertisement categories of information that a fund 134 under section 2(a)(10)(b) of the cannot be one that ‘‘omits’’ information may advertise. The Commission Securities Act, rule 134 advertisements from the statutory prospectus unless all adopted rule 134 under the authority of are not considered prospectuses. As a of the information in the advertisement section 2(a)(10)(b) of the Securities result, rule 134 advertisements do not is derived from information in the Act.25 Section 2(a)(10)(b) excepts a create liability under section 12(a)(2) of statutory prospectus.20 Significantly, communication from the definition of the Securities Act, which by its terms rule 482 provides a means for mutual ‘‘prospectus’’ if the communication applies only to prospectuses and oral funds to advertise performance states from whom an investor may communications.28 Rule 134 information according to standardized obtain a written prospectus meeting the advertisements, however, are subject to formulas.21 requirements of section 10 of the the antifraud provisions of the federal Because a rule 482 advertisement is a Securities Act and, in addition, does no securities laws.29 prospectus under section 10(b) of the more than identify the security, state its Rule 34b–1 Securities Act, a rule 482 advertisement price and by whom orders will be is subject to section 12(a)(2) of the executed, and contain any other Rule 34b–1 under the Investment Securities Act, which imposes liability information that the Commission Company Act applies to supplemental for materially false or misleading permits by rule. Originally, rule 134 sales literature, i.e., sales literature that statements in a prospectus or oral communications, known as ‘‘tombstone is preceded or accompanied by the communication, subject to a reasonable advertisements,’’ were intended merely statutory prospectus.30 Under rule 34b– care defense.22 Rule 482 advertisements to announce the existence of a public 1, any performance data included in are also subject to the antifraud offering and serve as a simple means for supplemental sales literature must be provisions of the federal securities soliciting inquiries for the statutory accompanied by performance data laws.23 Mere compliance with the terms prospectus.26 Over the years, however, computed using the standardized the Commission has amended rule 134, formulas for advertising performance (Sept. 10, 1979)] (‘‘1979 Advertising Adopting broadening the permissible categories of under rule 482.31 The Commission Release’’) (initially adopting rule 482 as rule 434d). adopted rule 34b–1 to ensure that 19 Rule 482(a)(2) under the Securities Act [17 CFR Company Act [15 U.S.C. 80a–33]; section 206 of the performance claims in supplemental 230.482(a)(2)]. Business development companies Investment Advisers Act of 1940 [15 U.S.C. 80b–6] sales literature would not be misleading are a category of closed-end investment companies (‘‘Investment Advisers Act’’). and to promote comparability and that are not required to register under the Members of the National Association of Securities Investment Company Act. See Section 2(a)(48) of Dealers, Inc. (‘‘NASD’’) also must comply with rule uniformity among supplemental sales the Investment Company Act [15 U.S.C. 80a– 2210 of the NASD Conduct Rules when sponsoring literature and rule 482 advertisements.32 2(a)(48)] (defining ‘‘business development fund advertisements. Rule 2210 provides NASD Supplemental sales literature is subject company’’). members with general standards outlining what to the antifraud provisions of the federal 20 Investment Company Act Release No. 9811 may constitute misleading fund advertising and (June 8, 1977) [42 FR 30379, 30380 (June 14, 1977)] specific standards reflecting requirements for (‘‘1977 Advertising Proposing Release’’) (proposing advertising communications. Rules 2210(d)(1) and 27 See Securities Act Release No. 5250 (May 9, rule 434d, subsequently renumbered as rule 482). (2) of the NASD Conduct Rules. 1972) [37 FR 10071 (May 19, 1972)] (permitting 21 Rule 482 provides mutual funds with an 24 1988 Advertising Adopting Release, supra note tombstone advertisement to include general opportunity to advertise, according to standardized 21, at 3878 n. 51. See also Investment Company Act description of mutual fund); Investment Company formulas, their current yield, tax-equivalent yield, Release No. 24832 (Jan. 18, 2001) [66 FR 9002, 9008 Act Release No. 8568 (Nov. 4, 1974) [39 FR 39868 total return, and after-tax return. Mutual funds also (Feb. 5, 2001)] (‘‘After-Tax Adopting Release’’) (Nov. 12, 1974)] (permitting tombstone may advertise other historical measures of fund (compliance with rule 482 is not a safe harbor from advertisement to include description of certain performance, subject to certain limitations, antifraud liability); Investment Company Act special attributes of mutual fund, e.g., discussion of provided that the standardized total return is also Release No. 15315 (Sept. 17, 1986) [51 FR 34384, a fund’s investment objectives); Investment included. Rule 482(e) under the Securities Act [17 34391 (Sept. 26, 1986)] (‘‘1986 Advertising Company Act Release No. 8824 (June 16, 1975) [40 CFR 230.482(e)]. The Commission adopted the use Proposing Release’’) (in proposing amendments to FR 27442 (June 30, 1975)] (extending the expanded of standardized formulas in order to permit rule 482 to require the inclusion of a legend on tombstone advertising contents to UITs and prospective investors to compare the performance advertisements, Commission stated that it was ‘‘not permitting certain kinds of pictorial illustrations, claims of competing funds and to prevent suggesting that the legend information contains all such as logos, to be used in investment company misleading performance claims by funds. the material information necessary to prevent an ad tombstone advertising). Investment Company Act Release No. 16245 (Feb. from being misleading * * * [and] that whoever 28 See supra note 22 and accompanying text 2, 1988) [53 FR 3868 (Feb. 10, 1988)] (‘‘1988 sponsors the ad, be it the fund, the underwriter, or (discussing liability under section 12(a)(2) of the Advertising Adopting Release’’). the dealer, bears the primary responsibility for Securities Act). 22 15 U.S.C. 77l(a)(2). An action under section assuring that the ad is not false or misleading’’); 29 See supra note 23 (noting various antifraud 12(a)(2) does not require proof of scienter (i.e., an 1977 Advertising Proposing Release, supra note 20, provisions under the federal securities laws). intent to defraud investors), e.g., Wigand v. Flo-Tek, at 30380 (advertisements made pursuant to rule 30 17 CFR 270.34b–1. Under section 2(a)(10)(a) of Inc., 609 F.2d 1028, 1034 (2d Cir. 1979), or investor 434d (subsequently renumbered as rule 482) would the Securities Act [15 U.S.C. 77b(a)(10)(a)], a reliance on a misleading statement or omission, e.g., be subject to the antifraud provisions of the communication sent or given after the effective date MidAmerica Fed. S. & L. Assoc. v. Shearson/ securities laws); In the Matter of The Dreyfus of the registration statement is not deemed a American Express, Inc., 886 F.2d 1249, 1256 (10th Corporation and Michael L. Schonberg, Investment ‘‘prospectus’’ if it is proved that prior to or at the Cir. 1989); Sanders v. John Nuveen & Co., 619 F.2d Advisers Act Release No. 1870 (May 10, 2000) same time with such communication a written 1222, 1225 (7th Cir. 1980), cert. denied, 450 U.S. (‘‘Dreyfus Order’’) (advertisements that comply with statutory prospectus was sent or given to the person 1005 (1981). In contrast, claims under the antifraud rule 482 are subject to the general antifraud to whom the communication was made. provisions of section 10(b) of the Securities provisions of the securities laws). 31 Rule 34b–1 applies to supplemental sales Exchange Act of 1934 (‘‘Exchange Act’’) [15 U.S.C. 25 15 U.S.C. 77b(a)(10(b). literature that is required to be filed with the 78j(b)] reqire proof of scienter and investor reliance. 26 See Division of Investment Management, Commission under section 24(b) of the Investment Under either type of claim, however, the plaintiff Securities and Exchange Commission, Protecting Company Act [15 U.S.C. 80a–24(b)], i.e., must establish that the misrepresentation or Investors Study: A Half Century of Investment supplemental sales literature of registered open-end omission is material. Company Regulation (1992) (‘‘Protecting Investors companies, unit investment trusts, and face-amount 23 See, e.g., Section 17(a) of the Securities Act [15 Study’’) at 358. See also T. Lemke, G. Lins, A. Smith certificate companies. U.S.C. 77q]; section 10(b) of the Exchange Act [15 III, Regulation of Investment Companies, Vol. 1, ch. 32 1986 Advertising Proposing Release, supra note U.S.C. 78j(b)]; section 34(b) of the Investment 14, § 14.02, at 14–3 (2001). 24, at 34393.

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securities laws. Mere compliance with discussed more fully below, we have public offering investments was the terms of rule 34b–1 is not a safe particular concerns about the following materially misleading. harbor against antifraud liability.33 practices: To address these concerns, some • Advertising performance without mutual fund advertisements supplement Rule 156 providing adequate disclosure of their presentations of performance Rule 156 under the Securities Act unusual circumstances that have information with narrative disclosure provides guidance on the types of contributed to performance; that is designed to inform investors that information that could be misleading in • Advertising performance without the funds’ performance was achieved fund sales literature.34 It applies to all providing adequate disclosure of the through the use of particular investment advertisements and supplemental sales performance period, that more current strategies under specified circumstances literature.35 Under rule 156, whether a performance information is available, or that are not likely to recur. For example, statement involving a material fact is that more current performance may be one fund advertisement disclosed that a misleading depends on an evaluation of lower than advertised performance; and significant portion of the fund’s the context in which it is made. Rule • Advertising performance based on advertised performance was attributable 156 indicates that representations about selective dates or time periods in order to the allocation of initial public past performance could be misleading to showcase fund performance as of offering securities to the fund but in situations where portrayals of past those specific dates or time periods indicated that such allocation would not performance convey an impression of without providing disclosure that would likely continue in the future. net investment results that would not be permit an investor to evaluate the Currentness of Performance Information justified under the circumstances.36 significance of the performance. Rule 482 requires all performance B. Performance Advertising Practices Unusual Circumstances That Contribute data contained in any mutual fund Although there are many factors other to Fund Performance advertisement to be as of the most than performance that an investor Mutual fund performance recent practicable date, provided that should consider in deciding whether to advertisements may be materially any advertisement containing total invest in a particular fund, many misleading when they fail to adequately return quotations is considered to have investors consider performance to be disclose that unusual circumstances complied with this requirement if the one of the most significant factors when contributed to the fund’s advertised total return quotations are current to the selecting or evaluating mutual funds.37 performance. In each of two most recent calendar quarter ended Eager to attract new investors, many enforcement actions, an investment prior to submission of the advertisement funds have, from time to time, engaged adviser had marketed a relatively small for publication.40 As a result, total in advertising campaigns focusing on fund’s unusually high return without return quotations may be up to three past performance. As a result of disclosing that a significant percentage months old at the time that an advertising that focused on of the fund’s return was attributable to advertisement is submitted for extraordinary fund performance during its investments in securities issued in publication. We are concerned that, in 1999–2000, there have been increasing initial public offerings.39 Given the some cases, an advertisement that concerns that some funds, when substantial growth in the funds’ assets complies with these requirements of advertising their performance, may as a result of sales of the funds’ shares rule 482 may nonetheless confuse, or resort to techniques that create to the public, to the point where the even mislead, investors regarding the unrealistic investor expectations or may funds were no longer experiencing, by fund’s current performance, particularly mislead potential investors.38 As investing in additional initial public when the fund’s performance has offerings, substantially similar declined significantly after the period 33 After-Tax Adopting Release, supra note 24, at performance as they previously reflected in an advertisement. 9008. experienced, the Commission found that We questioned this practice in an 34 17 CFR 230.156. enforcement action where we found that 35 the failure to disclose the contribution 17 CFR 230.156(c). the failure to disclose the large impact 36 17 CFR 230.156(b)(2)(i). See Investment to the funds’ performance of the initial Company Act Release No. 10915 (Oct. 26, 1979) [44 of initial public offerings on a fund’s FR 64070 (Nov. 6, 1979)] (adopting rule 156). See also NASD Regulation, Inc. (‘‘NASDR’’), performance during the fund’s first 37 See Investment Company Institute, Inaccurate Performance Graphs Result In Formal fiscal year made the fund’s performance Understanding Shareholders’ Use of Information Action (last modified Summer 2000) http:// advertisements materially false and _ _ and Advisers (Spring 1997), at 21 and 24 (Total www.nasdr.com/rca summer00 adv.htm (warning 41 return information was frequently considered by against misleading performance graphs in fund misleading. One of the significant investors before a purchase, second only to the level advertising); NASD Notice to Membes No. 00–21 facts in that case was that the fund’s of risk of the fund. Eighty-eight percent of fund (Apr. 2000) (‘‘NASD Notice 00–21’’) (advising advertisements publicized extraordinary investors surveyed said that they considered total members to be careful when advertising first-year returns at a time when the return before their most recent purchase of a mutual extraordinary fund performance because fund. Eighty percent of fund owners surveyed prospective investors may believe that these fund’s more current returns had become 42 reported that they followed a fund’s rate of return unusually high returns will continue and warning negative. While the fund at least four times per year.). See also Securities and that material disclosures, which may balance an advertisements complied with rule 482, Exchange Commission, Mutual Fund Investing: advertisement’s overall message, should not be we noted that rule 482 advertisements Look at More Than a Fund’s Past Performance, relegated to footnotes). remain ‘‘subject to the general antifraud supra note 10 (cautioning investors to consider 39 Dreyfus Order, supra note 24 (investment factors other than performance, such as fees, risks, adviser violated antifraud prohibitions of section volatility, and recent changes in the fund’s 206(2) of the Investment Advisers Act [15 U.S.C. 40 Rule 482(g) under the Securities Act [17 CFR operations, when evaluating mutual funds). 80b–6(2)] and section 17(a)(3) of the Securities Act 230.482(g)]. 38 Paul F. Roye, Director, Division of Investment [15 U.S.C. 77q(a)(3)]); In the Matter of Van Kampen 41 See Dreyfus Order, supra note 24. Management, ‘‘Success and Survival of the Mutual Investment Advisory Corp. and Alan Sachtleben, 42 Id. (81.92% total return for the one-year period Fund Industry in a Changing World,’’ Remarks Investment Advisers Act Release No. 1819 (Sept. 8, ended September 30, 1996, publicized in October before the ICI General Membership Meeting, 1999) (investment adviser violated antifraud through December 1996 when total returns for the Washington, DC (May 19, 2000) (discussing prohibitions of section 206(2) of the Investment three-month periods ended August 30, September Commission concerns with fund advertising). Advisers Act [15 U.S.C. 80b–6(2)] and section 34(b) 30, October 31, November 29, and December 31, (transcript available at http://www.sec.gov/news/ of the Investment Company Act [15 U.S.C. 80a– 1996, were negative 17.03%, 7.71%, 7.79%, speech/spch373.htm). 33(b)]). 16.25%, and 13.37%, respectively).

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provisions of the federal securities laws to the effect that the fund’s performance Eliminating this requirement will and must not be false and may be volatile, that the performance permit investment companies to include misleading.’’ 43 information shown is not current, or more information in rule 482 To address this concern, some mutual that the advertised performance is not advertisements on a real-time basis, e.g., fund advertisements supplement their representative of the fund’s historical information about current economic presentations of performance performance. conditions that normally would not be information with narrative disclosure II. Discussion included in a fund’s prospectus. The that is designed to inform investors that proposed amendment will also permit the advertised performance is not the We are proposing to amend rule 482 funds to eliminate from the statutory fund’s current performance. Some to permit rule 482 advertisements to prospectus information, such as advertisements disclose that, due to include information that is not included boilerplate disclosure about the market volatility or other factors, the in the statutory prospectus, in methods used to calculate performance fund’s performance changes over time accordance with NSMIA. In light of the in fund advertising, that clutters the or that the fund’s current performance proposed amendments to rule 482, we statutory prospectus and obscures other may be lower than the advertised are also proposing to rescind the important information. As a result, performance. Other advertisements provisions in rule 134 that apply to investors should receive better, more direct investors to other sources where funds. At the same time, however, and understandable, and more timely they may find more up-to-date in light of our concerns about fund information in both the statutory performance information, such as the advertising practices, we believe that it prospectus and fund advertisements. In fund’s toll-free telephone number or is appropriate to reinforce the antifraud addition, the costs of regulatory website or the mutual fund section of protections in the fund advertising compliance will be reduced for funds the newspaper in which the rules. Our proposals would require and, ultimately, for investors. advertisements appear. In addition, enhanced disclosure of information in Elimination of the ‘‘substance of some advertisements include fund advertisements and are designed to which’’ requirement from rule 482 performance information that is more encourage advertisements that convey should not diminish investor protection. current than the information required by balanced information to prospective The ‘‘substance of which’’ requirement rule 482. investors. is a technical requirement that does not, Selective Use of Performance Figures A. Eliminating the ‘‘Substance of in itself, prevent misleading statements Which’’ Requirement From Rule 482 because it does not require an A mutual fund advertisement may be and Rescinding Rule 134 for Funds advertisement to use the same words as materially misleading when it In 1992, the Division of Investment the statutory prospectus or prohibit the showcases a fund’s performance for a use of advertising techniques that are certain time period without providing Management recommended to the Commission that the Securities Act be not included in the statutory sufficient information to permit an prospectus.48 Importantly, rule 482 investor to evaluate the significance of amended to permit investment companies to advertise a wide range of advertisements, as ‘‘prospectuses,’’ will the performance data. Rule 482, by its remain subject to section 12(a)(2) terms, permits a mutual fund to information in the form of an ‘‘advertising prospectus,’’ including liability and the antifraud provisions of advertise its performance for any period information that is not included in the the federal securities laws. Also, rule so long as it is accompanied by statutory prospectus required by section 482 advertisements, as section 10(b) performance for 1-, 5-, and 10-year 10(a).45 Congress embraced this prospectuses under the Securities Act, periods (or, if shorter, for the life of the recommendation in NSMIA when it are subject to the summary suspension fund) current to the most recent added new section 24(g) to the provisions of section 10(b), which quarter.44 Nonetheless, if a fund Investment Company Act. Section 24(g) permit the Commission to suspend the selectively advertises performance that directs the Commission to adopt rules or use of a materially false or misleading is unusually high and not representative 49 regulations that permit registered prospectus. In addition, fund of the fund’s historical performance, investment companies to use advertising materials must continue to investors potentially may be misled. prospectuses that (i) include be filed with NASD Regulation, Inc. Selectively advertising performance as information the substance of which is (‘‘NASDR’’) or the Commission, and of a particular date may be particularly not included in the statutory NASDR rules relating to fund problematic where performance has prospectus, and (ii) are deemed to be advertising will continue to apply.50 declined after the chosen date but before permitted by section 10(b) of the the advertisement is submitted for Securities Act.46 statements included in the advertisement are publication. To address these concerns, Today we are proposing to implement included in the section 10(a) prospectus does not some mutual fund advertisements relieve the issuer, underwriter, or dealer of the this provision of NSMIA by amending obligation to ensure that the advertisement is not supplement their performance rule 482 to remove the requirement that false or misleading.’’ The proposed removal of the presentations with narrative disclosure a rule 482 advertisement contain only ‘‘substance of which’’ requirement makes the information the ‘‘substance of which’’ is reference to the section 10(a) prospectus 43 unnecessary. The revised language of this note is Id. at n. 16. Similarly, NASDR warned its 47 members about performance advertising when a included in the statutory prospectus. incorporated into the proposed note to proposed security’s performance has been negatively affected paragraph (a) of rule 482. See Section II.B., infra, by sudden changes in market conditions. NASDR 45 Protecting Investors Study, supra note, at 370. ‘‘Applicability of Antifraud Provisions to Fund advised its members ‘‘that if a security experiences 46 15 U.S.C. 80a–24(g). See also S. REP. NO. 293, Advertising.’’ an abrupt negative change in performance, member 104th Cong., 2d Sess. 8 (1996) (stating that the ‘‘bill 48 See 1977 Advertising Proposing Release, supra firms should amend their historical performance improves fund advertising by giving the note 20, at 30380. communications to add either updated performance Commission express authority to create a new 49 15 U.S.C. 77j(b). figures or clear disclosure that current performance investment company ‘advertising prospectus’’’). 50 Section 24(b) of the Investment Company Act is less than the figures shown.’’ NASD Regulation, 47 The ‘‘substance of which’’ requirement is [15 U.S.C. 80a–24(b)] requires the filing with the Inc., Sudden Performance Changes May Require presently contained in rule 482(a)(2) [17 CFR Commission of ‘‘any advertisement, pamphlet, More Information (last modified Summer 1999) 230.482(a)(2)]. We are also proposing to revise the circular, form letter, or other sales literature’’ for http://www.nasdr.com/3085_9906. htm. language in the current note to paragraph (a)(3) of any registered investment company other than a 44 Rule 482(e)(5)(ii) [17 CFR 230.482(e)(5)(ii)]. rule 482, which states that ‘‘[t]he fact that the closed-end fund. Rule 24b–3 under the Investment

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Finally, we are today proposing to amend it, will provide funds with state that an advertisement that additional amendments to rule 482 to sufficient flexibility to discuss topics, complies with rule 482 does not relieve reinforce antifraud protections, such as current economic conditions, the fund, underwriter, or dealer of the particularly in the area of fund that are currently discussed in rule 134 obligation to ensure that the performance.51 advertisements but generally not in the advertisement is not false or misleading. We are using our exemptive authority statutory prospectus. We believe that We also propose adding a similar note under the Securities Act to eliminate the investor protection will be increased if to the introductory paragraph of rule ‘‘substance of which’’ requirement from fund advertisements including this 34b–1 under the Investment Company rule 482 for the securities of business information are subject to rule 482 and, Act with respect to supplemental sales development companies (‘‘BDCs’’) as as a result, to section 12(a)(2) liability.54 literature. We are proposing to add the well as registered investment We request comment on the note to rule 34b–1 to make clear that, as companies.52 Currently, BDCs and elimination of the rule 134 provisions with rule 482, compliance with the rule registered investment companies are that apply to funds. does not relieve the fund, or its treated similarly under rule 482. We • Should funds be excluded from underwriter or dealer, from the believe that it is appropriate to extend relying on rule 134? obligation to ensure that an the benefits that would result from • If funds should continue to be advertisement is not false or misleading, elimination of the ‘‘substance of which’’ permitted to rely on rule 134, how, if at whether due to an affirmative requirement to BDCs, given that all, should rule 134 be amended? misstatement or omission. These elimination of this requirement should • In the alternative, should only proposed notes also would cross- not diminish investor protection. We certain types of funds (e.g., closed-end reference rule 156 under the Securities note, however, that BDCs, unlike mutual funds or business development Act, which provides guidance about the funds, do not continuously offer and companies) be able to use rule 134 factors to be weighed in determining sell their shares and do not make advertisements? If so, why? whether statements, representations, illustrations, and descriptions contained extensive use of advertisements. B. Applicability of Antifraud Provisions We request comment on the in fund advertisements and sales to Fund Advertising elimination of the ‘‘substance of which’’ literature are misleading. requirement from rule 482. The Commission proposes to amend In addition, we are proposing to • Are the proposed amendments to the fund advertising rules in order to amend rule 156 to provide further rule 482 to eliminate the ‘‘substance of reemphasize that fund advertisements guidance regarding the factors to be which’’ requirement the appropriate are subject to the antifraud provisions of weighed in considering whether a means for implementing the authority the federal securities laws. We statement involving a material fact in provided to the Commission in NSMIA? understand that questions have been investment company sales materials is • Are other restrictions or conditions raised regarding whether compliance or might be misleading. As discussed necessary in rule 482 for the protection with the terms of rule 482 satisfies all above, we are concerned that the of investors in the absence of the of the obligations of a fund with respect advertisement of past performance ‘‘substance of which’’ requirement? to its advertisements.55 When we without an adequate explanation of • What concerns should be addressed initially proposed rule 482 in 1977, we other facts may create unrealistic by any such restrictions or conditions? indicated that rule 482 advertisements investor expectations or even mislead • Should the ‘‘substance of which’’ would be subject to section 12(a)(2) of potential investors. For that reason, we requirement be eliminated for BDCs? the Securities Act and the antifraud are modifying the language of rule 156 With the proposed elimination of the provisions of the federal securities to state more explicitly that portrayals of ‘‘substance of which’’ requirement, we laws.56 Since then, we have reiterated past income, gain, or growth of assets believe that funds will no longer need that compliance with the ‘‘four corners’’ may be misleading where the portrayals to rely on rule 134.53 We are therefore of rule 482 does not alter the fact that omit explanations, qualifications, proposing to remove the provisions of funds, underwriters, and dealers are limitations, or other statements rule 134 that apply specifically to funds subject to the antifraud provisions of the necessary or appropriate to make these and to exclude both registered federal securities laws with respect to portrayals of past performance not investment companies and business fund advertisements.57 misleading.58 This language is intended development companies from relying on To emphasize this principle, we to address our concerns with fund rule 134. Rule 134 will remain available propose adding a note to proposed performance advertisements that do not to other issuers. Rule 482, as we propose paragraph (a) of rule 482 that would provide adequate disclosure (i) of unusual circumstances that have Company Act [17 CFR 270.24b–3] relieves funds of 54 Rule 134 advertisements are subject to the contributed to fund performance; 59 (ii) the obligation to file advertisements and other sales antifraud provisions under the federal securities that more current performance may be materials with the Commission if that material is laws but do not create liability under section 60 filed with NASDR. See supra note 23 (discussion 12(a)(2) of the Securities Act. See supra note 22 and lower than advertised performance; or of NASD advertising rules). accompanying text (discussing section 12(a)(2) 51 See discussion in Section II.B., ‘‘Applicability liability) and note 28 and accompanying text 58 Proposed rule 156(b)(2)(i). Currently, rule 156 of Antifraud Provisions to Fund Advertising,’’ and (discussing rule 134 advertisements and section states that portrayals of past performance may be Section II.C., ‘‘Enhanced Disclosure under Rule 12(a)(2)). deemed misleading if they convey an impression 482,’’ infra. 55 See, e.g., Bloomberg News, SEC Reviewing about the investment results that would not be 52 Section 28 of the Securities Act [15 U.S.C. 77z– Funds Ads That May Mislead, Los Angeles Times, justified under the circumstances. Rule 156(b)(2)(i) 3]. Business development companies are a category July 13, 1999, at C5 (stating that the Commission’s under the Securities Act [17 CFR 230.156(b)(2)(i)]. of closed-end investment companies that are not position that advertisements complying with the 59 See supra 39 note and accompanying text required to register under the Investment Company four corners of rule 482 may still be misleading (discussing Commission enforcement cases Act. See Section 2(a)(48) of the Investment under the federal securities laws ‘‘has drawn sanctioning fund advisers for lack of disclosure Company Act [15 U.S.C. 80a–2(a)(48)] (defining criticism from the fund sector’’). regarding the impact of investments in initial public ‘‘business development company’’). 56 1977 Advertising Proposing Release, supra note offerings on advertised performance). 53 The Protecting Investors Study recommended 20, at 30380. 60 See supra notes 40–43 and accompanying text rescinding the provisions of rule 134 applicable 57 1988 Advertising Adopting Release, supra note (discussing concerns that advertisements that solely to funds. Protecting Investors Study, supra 21 at 3878 n. 51. See also discussion in note 24, comply with rule 482 may nonetheless mislead note 26, at 363. supra. investors regarding the fund’s current performance).

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(iii) that would permit an investor to after the period reflected in an most recent calendar month ended prior evaluate the significance of performance advertisement. to submission of the advertisement for that is based on selective dates.61 We In order to address this concern, we publication. This approach would have remind funds and their underwriters are proposing to add a second condition the advantage of providing more current and dealers, however, that this language for a fund advertisement to be performance information to investors in would address other circumstances that considered to have complied with the advertisements rather than placing the we have not specifically enumerated requirement of rule 482 that burden on investors to seek out this and that each fund, and its underwriters performance be as of the most recent information through a telephone call. and dealers, is responsible for analyzing practicable date. Specifically, total We were not, however, persuaded that the facts and circumstances concerning return quotations current to the most the benefits to investors from this its advertisements and determining recent month-end, and available to approach would outweigh the costs it whether its advertisements may be investors within three calendar days of would impose. fraudulent. the most recent month-end, must be First, a month-end standard for rule We request comment on the proposed provided at a toll-free (or collect) 482 performance data could result in an amendments reemphasizing the telephone number.63 increase in the number of instances in applicability of the antifraud provisions. This proposal would ensure that which performance information for • Are there additional amendments to investors who are provided different periods appeared concurrently rule 482, rule 34b–1, and rule 156 that advertisements touting a fund’s as a result of different lead times for would help to emphasize the obligations performance will have ready access to different publications. One advantage of under the antifraud provisions of funds performance that is current to the most the quarter-end approach is that it tends and their underwriters and dealers? recent month-end and will not be forced to result in the publication of to rely on performance data that may be comparable numbers by different funds. C. Enhanced Disclosure Under Rule 482 more than three months old at the time Second, requiring all funds to publish We are also proposing additional of use by the investor. Outdated fund data as of the most recent month-end in amendments to rule 482 that would performance that is relied on by an all cases, without regard to the require enhanced disclosure of certain investor when, for example, the markets materiality of this information, would information designed to encourage have generally entered a period of lower perhaps accord very recent performance performance, may cause the investor to advertisements that convey balanced greater status than it deserves and could have an overly optimistic view of the information to prospective investors. contribute to investors’ tendency to fund’s ability to outperform the markets. Our proposed amendments would focus excessively on short-term We believe that today’s proposal will require that funds that advertise performance.64 help to address this problem by making performance information make available A month-end standard would also more recent performance data available to investors total returns that are current impose costs on funds and, indirectly, to investors in any fund that advertises to the most recent month-end. They also on investors. While a month-end its performance. standard might be fairly simple to would require that fund advertisements We note that the proposed comply with for advertisements in some include improved narrative information amendments would require the publications (e.g., newspapers), it might and present explanatory information availability of month-end performance be difficult for other forms of more prominently. information even if the advertisement advertisement. For example, mutual itself included performance current as Availability of Month-End Performance fund distributors frequently supply of the most recent month-end at the Information sales material in bulk to third-party time of submission for publication. The intermediaries, such as broker-dealers, As discussed above, Rule 482 requires availability of month-end information and to retirement plan sponsors, who all performance data contained in any would be useful to investors in these then distribute it to investors. If month- mutual fund advertisement to be as of circumstances if, for example, the end numbers were required, the ‘‘shelf the most recent practicable date, advertisement continued to be used life’’ of this material would be provided that any advertisement subsequent to the end of the following abbreviated, which could result in containing total return quotations is month, or if the investor referred to the significant additional printing and considered to have complied with the advertisement at a later date. requirement if the total return Finally, we note that the availability compliance costs associated with quotations are current to the most recent of month-end information by telephone preparing updated material and calendar quarter ended prior to does not alter the application of the providing it to all distribution channels. We also considered whether to submission of the advertisement for antifraud provisions to an 62 provide funds greater flexibility in publication. As a result, total return advertisement. The month-end determining the medium through which quotations may be up to three months information obtained through a to make month-end numbers available, old at the time that an advertisement is telephone call would not be considered so that a fund could, for example, meet submitted for publication. We are part of the advertisement itself. concerned that, in some cases, an We considered amending the this obligation through website access. advertisement that complies with these requirements of rule 482 to provide that We concluded that, at this time, requirements of rule 482 may an advertisement would be considered requiring telephone availability would nonetheless confuse, or even mislead, to have complied with the ‘‘most recent ensure the most widespread access to investors, particularly when practicable date’’ requirement if the this information by all investors. While performance has declined significantly total return quotations are current to the the percentage of households with Internet access has increased 61 See supra 44 note and accompanying text 63 Proposed paragraph (g)(2) of rule 482. Our considerably in recent years, it remains (discussing concerns about selective advertisement understanding is that funds typically calculate of performance that is unusually high and not performance daily so that making month-end 64 See Securities and Exchange Commission, representative of a fund’s historical performance). performance numbers available within three Mutual Fund Investing: Look at More Than a Fund’s 62 Rule 482(g) under the Securities Act [17 CFR calendar days of the most recent month-end should Past Performance, supra note (cautioning investors 230.482(g)]. not be burdensome. to look beyond short-term performance records).

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substantially lower than the percentage • Should we require funds to provide Should funds that advertise with access to telephones.65 We note, more current performance information performance information, and for which however, that we have taken steps to in certain types of publications, e.g., daily performance information is encourage issuers and market websites or newspapers and other available in the press, be required to intermediaries to communicate with publications where there is a short lead refer to the availability of the daily and deliver information to investors time between submission and information in their performance through the Internet.66 The increased publication and a short shelf life? If so, advertisements? availability of information through this how current should the performance medium has helped to promote information be, e.g., month-end, week- Improved Narrative Disclosure end, or some other period? To what transparency, liquidity, and efficiency As discussed above, there have been types of publications should this by making information available to increasing concerns, arising from the investors quickly and in a cost-effective requirement apply? period of extraordinary market manner. We encourage each fund to • If we require funds to provide more performance in 1999 and 2000, that make its month-end performance current performance information some funds, when advertising their information available to its investors on through a toll-free telephone number or performance, may resort to techniques its website, if it has one. We applaud the other means, is month-end data current that create unrealistic investor efforts already being made by many enough or should this information be funds to provide access to performance updated more frequently than monthly expectations or may mislead potential and other information, such as (e.g., weekly or daily)? investors. As a result, we are proposing prospectuses, cost information, and • Should we require month-end changes to the narrative disclosure that portfolio holdings, through their performance data to be available at a is required to accompany performance websites. We encourage other funds to toll-free (or collect) telephone number advertisements in order to help make similar efforts. where the advertisement itself includes investors understand the limitations of We also note that nothing in rule 482 performance data current to the most past performance data and enhance the or our proposed amendments would recent month ended prior to submission ability of investors to obtain updated preclude a fund from using (and of the advertisement for publication? performance information. At present, • disclosing in a rule 482 advertisement) Should we require that updated rule 482 requires advertisements to other methods for providing updated performance information available disclose (i) a source from which an performance information, such as through a telephone number be current investor may obtain a prospectus broker-dealers, investment advisers, and as of the most recent practicable date containing more complete information other financial intermediaries. We (rather than specifying a particular date, about the fund; (ii) that the performance would encourage funds to use any such as month-end), and, if so, should data quoted represents past means to make this information more we provide guidance regarding what performance; and (iii) in the case of a accessible. Our proposals reflect our would satisfy that requirement (e.g., non-money market fund, that the month-end data)? investment return and principal value of view, however, that updated • performance information should be Is three calendar days an an investment will fluctuate so that an available from the fund itself through a appropriate period of time after each investor’s shares, when redeemed, may telephone call to an identified number month-end in which to require funds to be worth more or less than their original and that other forms of distribution of make available month-end performance cost.68 Our proposed amendments this updated information should information on a telephone line? If not, would also require funds to include the supplement availability from the fund should funds be allowed more or less following information in rule 482 itself. time, and, if so, how much time is advertisements that contain We request comment on the proposed needed, e.g., 1 day, 5 days, or some performance figures: (i) A statement that requirement that funds make available other amount of time? Should the time past performance does not guarantee month-end performance numbers period be based on calendar days or future results; (ii) a statement that through a toll-free (or collect) telephone business days? current performance may be lower or • Is telephone access to updated number in order to comply with the higher than the performance data performance information the best currentness requirements of rule 482. quoted; and (iii) a fund toll-free (or alternative, or is another alternative, • Is our proposed requirement collect) telephone number and, if such as website access, better? appropriate, or should we, instead, available, a Web site where an investor • Should funds have flexibility to require funds to provide more current choose the medium for communicating performance information in all updated performance information? at least 1,000 shareholders or $25 million in net advertisements? If so, how current • What would be the cost of requiring assets. Id. at § 6800(c)(1)(A). 68 Rule 482(a)(3)(i) and (6) [17 CFR should the information be, e.g., month- access to month-end performance end, week-end, or some other period? 230.482(a)(3)(i) and (6)]. Rule 482(a)(3)(ii) [17 CFR information by toll-free telephone 230.482(a)(3)(ii)] requires that an advertisement used with a profile under rule 498 under the 65 number for funds that do not currently Economics and Statistics Administration & provide this access? Securities Act [17 CFR 230.498] indicate that National Telecommunications and Information • information is available in the profile about the Administration, A Nation Online: How Americans A number of daily newspapers of fund, the procedures for investing in the fund, and Are Expanding Their Use of the Internet, at 3 (Feb. national circulation, such as The Wall the availability of the fund’s prospectus. In 2002) (50.5% of households had Internet access as Street Journal and The New York Times, addition, rule 482(a)(4) requires the ‘‘subject to of Sept. 2001); Federal Communications completion’’ legend required by rule 481(b)(2) Commission, Telephone Subscribership In the publish returns for a significant number 67 under the Securities Act if the advertisement is United States, at 1 (Feb. 2002) (95.1% of of mutual funds on a daily basis. used prior to effectiveness of the fund’s registration households had telephone service as of July 2001). statement, or, in the case of a registration statement 66 See, e.g., Securities Act Release No. 8089 (April 67 See NASD Manual § 6800 (CCH) at 6551 (March that becomes effective omitting certain information 12, 2002) [67 FR 19896, 19902 (April 23, 2002)] 2001) (describing Mutual Fund Quotation Service from the prospectus contained in the registration (proposing to require companies to include which disseminates prices for mutual funds). A statement in reliance upon rule 430A, when the disclosure in their annual reports on Form 10–K mutual fund may choose to be included in the news advertisement is used prior to determination of the about the availability on company websites of media list released by The NASDAQ Stock Market public offering price. Rule 481(b)(2); rule 430A [17 reports on Forms 10–K, 10–Q, and 8–K). through the Mutual Fund Quotation Service if it has CFR 430.481(b)(2); 430.430A].

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may obtain performance data current to Congress on mutual fund fees, stressed requires that the statement regarding the the most recent month-end.69 the importance of heightening availability of the prospectus be These statements should help ‘‘investors’’ awareness and ‘‘conspicuous’’ and that quotations of investors to understand the limitations understanding of the fees they pay.’’ 73 standardized performance be given no of past performance presentations, We believe that the amendment we are less prominence than other performance namely, that they represent historical proposing today, which will ensure that quotations.76 In addition, rule 482 print information that may not repeat in the fund advertisements remind fund advertisements are required by rule future and may even be somewhat shareholders about the availability of 420(a) under the Securities Act to be in outdated at the time an investor is information about fund charges and roman type at least as large and as reviewing them. In addition, provision expenses, will help to address the legible as 8-point modern type.77 Under of a toll-free (or collect) telephone GAO’s concerns. Although rule 482 rule 420(b), rule 482 advertisements number and, if the fund has month-end already requires that fund distributed through an electronic performance information available on advertisements that contain medium may satisfy legibility its Web site, the Web site where an performance data include standardized requirements applicable to printed investor may obtain performance data performance information net of fees and documents by presenting all required current to the most recent month-end charges,74 we agree with the GAO that information in a format readily will provide investors ready access to a the level of charges and expenses of a communicated to investors, and, where fund’s more current performance. mutual fund is an independent factor indicated, in a manner reasonably We are also proposing an amendment that should be given serious calculated to draw investor attention to to rule 482 that would direct consideration by a mutual fund specific information.78 prospective investors’ attention to a investor. The proposed amendments would fund’s charges and expenses. The We request comment on the proposed require print advertisements to present proposed amendment would require a requirement for disclosure about required narrative disclosures in a size fund to note in its rule 482 charges and expenses. type at least as large as and of a style advertisements that information about • Will the proposed disclosure about different from, but at least as prominent charges and expenses is contained in charges and expenses be helpful to as, that used in the major portion of the 70 the statutory prospectus. The many investors? advertisement.79 This requirement fund advertisements highlighting fund • Is there other disclosure with would apply to the required narrative performance have focused investor respect to charges and expenses that disclosures about the prospectus and attention on fund returns.71 Investors, should be required in fund the performance data.80 A radio or however, may be overlooking other advertisements? Are there fund features, television advertisement would be important fund features, particularly in addition to charges and expenses, required to give the required narrative charges and expenses, that may that a rule 482 advertisement should disclosures emphasis equal to that used 72 diminish a fund’s return. highlight? Mutual fund fees and expenses are Investment Advisers Act Release No. 1644 (Jul. 18, extremely important to shareholders. Presentation of Explanatory Information 1997) (disclosure in footnote that advertised results The United States General Accounting of investment adviser were ‘‘pro forma’’ was We are also proposing that funds inadequate to dispel misleading suggestion that Office (‘‘GAO’’), in a recent report to present certain information in their rule advertised performance represented results of 482 advertisements more prominently. actual trading). 69 Proposed paragraph (b)(3)(i) of rule 482. Cf. Funds often present required disclosure 76 Rule 482(a)(3), (e)(1)(iii), (e)(2)(iii), (e)(3)(iii), NASD Conduct Rule 2210(d)(2)(N) (investment (e)(4)(v), and (e)(5)(iv) [17 CFR 230.482(a)(3), performance illustrations may not imply that gain in small print and relegate it to a (e)(1)(iii), (e)(2)(iii), (e)(3)(iii), (e)(4)(v), and or income realized in the past will be repeated in footnote at the bottom of a print (e)(5)(iv)]. the future); NASD Conduct Rule IM–2210–3(c)(4) advertisement or the end of a television 77 Rule 420(a) [17 CFR 230.420(a)]. (all advertisements and sales literature containing advertisement.75 At present, rule 482 78 Rule 420(b) [17 CFR 230.420(b)]. These an investment company ranking must disclose that legibility requirements include paper size, type size past performance is no guarantee of future results). and font, bold-face type, italics, and red ink. 73 70 Proposed paragraph (b)(1)(i) of rule 482. This United States General Accounting Office, 79 Proposed paragraph (b)(5) of rule 482. The disclosure would also be required in an Mutual Fund Fees: Additional Disclosure Could proposed presentation requirements for rule 482 are advertisement used with a profile pursuant to rule Encourage Price Competition at 97 (June 2000). the same as those currently required under rule 134. 498 under the Securities Act. Proposed paragraph 74 Rule 482 requires that funds base standardized Rule 134(a)(iii) [17 CFR 230.134(a)(iii)]. The (b)(1)(ii) of rule 482. Rule 482 currently does not performance calculations on the methods proposed presentation requirements would replace require funds to highlight the availability of prescribed in Forms N–1A, N–3, or N–4. Rule the current rule 482 requirement that certain information regarding the fund’s charges and 482(d)(1), (e)(1)(i), (e)(2)(i), (e)(3)(i), and (e)(4)(i) [17 required disclosures be ‘‘conspicuous.’’ Rule expenses. The rule does, however, require an CFR 230.482(d)(1), (e)(1)(i), (e)(2)(i), (e)(3)(i), and 482(a)(3) [17 CFR 230.482(a)(3)]. advertisement to identify a source from which an (e)(4)(i)]. These forms generally require the In addition to complying with the presentation investor may obtain a prospectus containing more deduction of all recurring fees and maximum sales requirements of proposed paragraph (b)(5) of rule complete information about the fund. Rule loads and charges deducted from payments in 482, electronic versions of print rule 482 482(a)(3)(i) [17 CFR 230.482(a)(3)(i)]. The rule also calculating standardized performance. Item 21(b) advertisements would also continue to be subject to requires that a fund that advertises performance (1), (2), and (3) of Form N–1A; Item 25(b)(i) of Form the legibility requirements of rule 420(b). [17 CFR data include some information about sales loads N–3; Item 21(b)(i) of Form N–4. 230.420(b)]. and other nonrecurring fees. Rule 482(a)(6) [17 CFR 75 See Adam Shell, Investors’ Business Daily, Feb. 80 Proposed paragraphs (b)(1) and (b)(3) of rule 230.482(a)(6)]. 3, 2000, at B1 (stating that the placement of serious 482. The narrative disclosure covered by the 71 See supra note 37 and accompanying text warnings in ‘‘mice type’’ is a disservice to prominence requirement would also include, if (discussing concerns about advertising campaigns investors); Cruz, supra note 8 (stating that fund applicable, the ‘‘subject to completion’’ legend that focused on past performance). advertising often prints extraordinary fund return in would be required by proposed rule 482(b)(2), and, 72 See Securities and Exchange Commission, bold-faced type but then discloses risk factor if the advertisement is used with a profile under Mutual Fund Investing: Look at More Than a Fund’s language in ‘‘the fine print at the bottom of the ad’’); rule 498 under the Securities Act [17 CFR 230.498], Past Performance, supra note 37 (cautioning Marcy Gordon, Securities Regulators Look at disclosure explaining that the profile contains investors to look beyond performance when Mutual Fund Sales Pitches, The Austin American- information about the fund, describing the evaluating funds and to consider the costs relating Statesman, Feb. 18, 2000, at D2 (citing how the procedures for investing in the fund, and indicating to a fund investment). See also NASD Notice to Commission has decried the ‘‘recent proliferation of the availability of the prospectus. Proposed Members No. 98–107 (1998) (reminding members of ads by mutual fund companies boasting of triple- paragraphs (b)(1)(ii) and (b)(2) of rule 482. In their obligation to ensure that discussions digit returns * * * [when] only the fine print in the addition, the prominence requirement would concerning fees and expenses in fund advertising ads explains why the performance was so strong’’). extend to disclosures specific to money market are fair, balanced, and not misleading). Cf. In the Matter of LBS Capital Management, Inc., funds. Proposed paragraph (b)(4) of rule 482.

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in the major portion of the • Are there specific presentation a result, we are revising these items in advertisement.81 These prominence requirements that should apply to the Forms N–1A, N–3, and N–4 to prescribe requirements are intended to prevent use of electronic media? the methods of calculation to be used if advertisements from marginalizing or • Are there any other requirements performance data is included in the minimizing the presentation of the that should apply to fund performance prospectus,88 and to eliminate the required disclosure. advertisements in order to help ensure requirements for information intended In addition, we are proposing that the that performance is presented in a to satisfy the ‘‘substance of which’’ narrative disclosures that specifically manner that is accurate, balanced, and requirement. Form N–6, the newly relate to fund performance be presented not misleading? adopted registration form for variable in close proximity to the performance D. Reorganization of Rule 482 and life insurance, will not contain any item data in both print and radio and Technical Form Amendments concerning performance data because television advertisements.82 In a print we have not prescribed any particular advertisement, this information also We also propose to reorganize rule method for calculating variable life would be required to be in the body of 482 to make it easier to use. To do this, insurance performance.89 the advertisement and not in a footnote. we have added headings to the rule and We also note that we are proposing to Rule 482 currently requires that have simplified certain provisions, delete requirements in Forms N–1A, N– performance advertisements identify the without changing their content, to make 3, and N–4 that specifically require dates during which quoted performance the rule easier to understand. In disclosure of the method of calculating occurred.83 We propose to require this addition, we have reordered provisions performance, and the length of and the information to be adjacent to, and have within the rule and grouped the last day of the base period used in no less prominence than, the provisions by topic. calculating a performance quotation, performance quotation itself.84 These We request comment on the and requirements in Form N–1A that proximity requirements are intended to reorganization of rule 482. require disclosure of the income tax rate • Would these proposed changes help investors more readily find used in a performance calculation.90 We make the rule more comprehensible? information and disclosure necessary to • Are there other changes that would emphasize, however, that if a fund understand and evaluate the be helpful? chooses to include any performance performance data shown, and to remind • Would these amendments information in its prospectus or SAI that investors of the limitations of inadvertently change the meaning of is not required to be included by the performance data. any provisions within the rule? applicable registration form, the fund is We solicit comment on the proposed We also propose to amend Item 21 of responsible for ensuring that the presentation requirements. information is not incomplete, • Form N–1A, Item 25 of Form N–3, and Are the proposed presentation Item 21 of Form N–4, and to delete Item inaccurate, or misleading.91 Thus, a requirements appropriate to encourage 4(c) of Form N–3, Item 4(b) of Form N– fund should include any disclosure, important explanatory information to be 4, and Item 25 of Form N–6 to reflect the including the method of calculating given sufficient prominence? performance, and the dates of the • proposed removal of the ‘‘substance of Are there alternative methods for which’’ requirement in rule 482.85 performance and tax rates used, that is encouraging important explanatory These items require funds that advertise required to meet this responsibility. information to be given sufficient performance data to provide in their We request comment on the proposed prominence in a rule 482 prospectuses or statements of additional amendments to Forms N–1A, N–3, N–4, advertisement? information (‘‘SAI’’) certain explanatory and N–6. • • Which required disclosures should disclosure about the methods by which If we eliminate the ‘‘substance of be covered by any such presentation the performance data is calculated.86 which’’ requirement from rule 482, are requirements? This information is included in the there other reasons why a fund should • Should we require a font size larger prospectus or SAI to satisfy the continue to be required to include than the 8-point type required under ‘‘substance of which’’ requirement in information about its methods of rule 420 for these required disclosures? connection with performance calculating performance in its • Are the proposed presentation advertising.87 The proposed removal of prospectus or SAI? requirements feasible for radio and • the ‘‘substance of which’’ requirement For example, should a fund be television advertisements, given the renders this disclosure unnecessary. As required to include in the SAI a inherent time limitations associated description of the methods by which with the use of these media? 85 Form N–1A [17 CFR 239.15A; 17 CFR 274.11A] is the registration form for open-end management 88 Under proposed rule 482, these methods would 81 Proposed paragraph (b)(5) of rule 482. investment companies. Form N–3 [17 CFR 239.17a; continue to apply to performance data included in 82 Proposed paragraph (b)(5) of rule 482. The 17 CFR 274.11b] is the registration form for separate advertisements, as well. See, e.g., proposed disclosure subject to the proximity requirement accounts organized as management investment paragraphs (d)(1)(i), (d)(2)(i), (d)(3)(i), (d)(4)(i), and would include the disclosure required by proposed companies that offer variable annuity contracts. (e)(1)(i) of rule 482. paragraph (b)(3) of rule 482 that the performance Form N–4 [17 CFR 239.17b; 17 CFR 274.11c] is the 89 Investment Company Act Release No. 25522 data quoted represents past performance; that past registration form for separate accounts organized as (Apr. 12, 2002) [67 FR 19848, 19856 (Apr. 23, performance does not guarantee future results; in unit investment trusts that offer variable annuity 2002)] (discussing variable life insurance the case of a non-money market fund, that the contracts. Form N–6 [17 CFR 239.17c; 17 CFR performance). investment return and principal value of an 274.11d] is the registration form for separate 90 Item 21(a)(5) and (b)(7) of Form N–1A; Item investment will fluctuate; that current performance accounts that are registered as unit investment 25(a)(iii), (a)(iv), (b)(i)(B), (b)(i)(C), (b)(ii)(B), may be lower or higher than the performance data trusts and that offer variable life insurance policies. (b)(ii)(C), (b)(iii)(B), and (b)(iii)(C) of Form N–3; quoted; and the toll-free telephone number and, if 86 The statement of additional information Item 21(a)(iii), (a)(iv), (b)(i)(B), (b)(i)(C), (b)(ii)(B), available, website where an investor may obtain contains more extensive and detailed information (b)(ii)(C), (b)(iii)(B), and (b)(iii)(C) of Form N–4. month-end performance data. about a fund than is contained in the prospectus, 91 See General Instruction C.3.(b) of Form N–1A; 83 Rule 482(e)(1)(iv), (e)(2)(v), (e)(3)(iv), (e)(4)(vi), and is required to be delivered to investors upon General Instruction 2 for Parts A and B of Form N– and (e)(5)(v) [17 CFR 230.482(e)(1)(iv), (e)(2)(v), request. 3; General Instruction 2 for Parts A and B of Form (e)(3)(iv), (e)(4)(vi), and (e)(5)(v)]. 87 Investment Company Act Release No. 23064 N–4; General Instruction C.3.(b) of Form N–6 84 Proposed paragraphs (d)(1)(iv), (d)(2)(v), (Mar. 13, 1998) [63 FR 13916, 13936–37 (Mar. 23, (allowing information that is not otherwise required (d)(3)(iv), (d)(4)(vi), (d)(5)(v), and (e)(1)(i) of rule 1998)]; 1986 Advertising Proposing Release, supra to be included in the prospectus or SAI so long as 482. note 24, at 34392. it is not incomplete, inaccurate, or misleading).

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any non-standardized performance is investor choices among funds, and the qualitative information in calculated? tendency of investors to emphasize advertisements? If so, how? performance in selecting mutual funds, • E. Compliance Date Currently, our rules include we believe it is appropriate to standardized performance calculations If we adopt the proposed reexamine the framework of regulation for investment companies, but not for amendments, we intend that the for investment company advertising and investment advisers. Does this amendment eliminating the ‘‘substance to consider whether it should be difference make sense and, if not, what of which’’ requirement from rule 482 modified to better serve investors. changes should we make? will take effect immediately upon the The Commission is undertaking an • Should fund advertisements be effective date of the amendments. We effort to modernize our rules and forms required to include information about a also expect to require fund in many areas. In light of this effort, we variety of factors that are important in advertisements used 90 days or more are searching for ways to provide more making an investment decision? If so, after the effective date of the meaningful and useful information to should the Commission prescribe the amendments to comply with the investors about mutual funds. factors that should be covered (e.g., amendments. The Commission requests We request comment generally on investment objectives, fees, risk), or comment on these proposed dates. Is 90 whether the framework for the should the Commission simply establish days an appropriate transition period for regulation of mutual fund advertising a more general requirement that compliance, or should this be shorter or could be modified, and specifically on advertisements present a balanced longer? Should we base compliance on the following issues. discussion of qualitative and the date an advertisement is used, or • Are there alternatives to the quantitative information that would should we require compliance based on framework of regulation for investment assist the average investor? the date an advertisement is submitted company advertising that is presently in • Is it helpful or necessary to for publication, or should we adopt place that would more effectively prescribe the manner in which some other alternative? protect investors? information should be presented in III. Request for Comments • Has the role of advertisements advertisements, e.g., emphasis and changed over the past several years? Has location of information or font size? A. Request for Comments on the • Framework for Regulation of Investment the role of advertisements changed Should radio and television fund Company Advertisements when compared to the role of the advertisements, or other forms of statutory prospectus? If so, how? Should advertisement where the investor may The amendments we propose today we revise our approach to the regulation not refer back to the advertisement, be would enhance the basic framework for of fund advertisements in light of those regulated differently than print fund performance advertising that we changes? advertisements? have had in place for many years. Since • For example, would it be better • What are the costs for funds, and 1988, we have required mutual funds simply to require that mutual fund indirectly for investors, as well as other that advertise performance to include advertisements adhere to general parties, associated with various standardized performance numbers in standards that would result in providing 92 alternative means of regulating fund their advertisements. In that same information that would assist the advertising? period, the assets of the industry have average investor without prescribing • What liability standards should grown from approximately $800 billion any regulation of the contents of apply to fund advertisements? to over $7 trillion, and the number of advertisements, including standards for available mutual funds has exploded B. General Request for Comments 93 performance advertising? from nearly 3,000 to over 8,000. Also, • To what extent should standards for The Commission requests comment the range of mutual funds available to fund advertising be established by the on the amendments proposed in this investors has changed dramatically. Commission, and to what extent should release, suggestions for additional Today, investors choose from a broad they be established by other provisions or changes to existing rules range of fund options with very organizations, e.g., NASDR? For or forms, and comments on other different risk profiles, including, among example, should we require NASDR to matters that might have an effect on the others, money market funds, play a larger role in establishing proposals contained in this release. government bond funds, high-yield standards for advertising? Would the bond funds, domestic equity funds, and C. Request for Comments on Rule limits on NASDR jurisdiction (that it international equity funds. 482(a)(5)(i) Relating to Variable regulates only its members) pose any Investors today face a daunting task Insurance Contracts when they attempt to sort through the issues if NASDR were to assume a larger We also wish to solicit comment on wealth of available mutual fund options role in establishing the standards for fund advertising? a provision of rule 482 relating to to choose an appropriate investment. In • making those choices, investors Is the standardization of variable insurance contracts. Rule 482 frequently rely on investment performance data necessary or helpful generally prohibits a rule 482 performance.94 Given the enormous to enable investors to compare different advertisement from containing or being funds or prevent fraudulent accompanied by an application to growth and change in the fund industry 95 in the past twenty-five years, the performance claims? Does the purchase fund shares. In order to importance of fund sales materials to advertisement of standardized preserve the statutory prospectus as the performance data obscure important primary disclosure document by 92 1988 Advertising Adopting Release, supra note factors, such as costs and risk, that vary encouraging investors to read the 21. from fund to fund and are important to statutory prospectus before investing, a 93 Investment Company Institute, 2001 Mutual an investment decision? rule 482 advertisement is required to Fund Fact Book at 63 (41st ed.); Investment • Does the standardization of include a legend telling investors how Company Institute, Trends in Mutual Fund Industry: March 2002, http://www.ici.org/ performance advertising encourage too to obtain a prospectus and directing facts_figures/trends_0302.html (Apr. 29, 2002). much reliance on performance? Should 94 See supra note 37 and accompanying text. our rules be designed to produce more 95 Rule 482(a)(5) [17 CFR 230.482(a)(5)].

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them to read it before investing.96 The the industry have argued that it should • Variable insurance products are one prohibition against applications be permissible for a contract prospectus among many channels through which accompanying rule 482 advertisements and application to be accompanied by mutual funds are distributed. How was included in rule 482 because the other rule 482 advertisements for the would explicitly broadening, or Commission believed that permitting underlying funds that are not a part of confining, the scope of the insurance purchase applications in a rule 482 the prospectus itself. exception from the application advertisement would undermine the Advocates of this position argue that prohibition affect other sectors of the purpose of the legend requirement.97 rule 482 permits either of the following: fund industry that are not permitted to Rule 482 contains an exception from (i) Delivery of a rule 482 advertisement include fund applications with rule 482 the prohibition against applications for for an underlying fund (without an advertisements? What would the unit investment trusts that offer variable application); and (ii) delivery of a competitive effects be within the annuity or variable life insurance contract prospectus with an application. variable insurance industry and as contracts.98 These contracts permit They therefore argue that, under rule between the variable insurance industry investors to allocate premiums among a 482, delivery of a rule 482 and other sectors of the fund industry? variety of underlying mutual funds in advertisement for an underlying fund • Should the Commission reconsider which the unit investment trust invests. (without an application) could be either the insurance exception for competitive The contract prospectuses contain preceded or followed by delivery of a or other reasons? Is the insurance descriptions of the underlying mutual contract prospectus with an application. exception consistent with investor funds, which are considered rule 482 As a result, they conclude that it should protection, given the limited amount of advertisements for the underlying be permissible for a contract prospectus information about the underlying funds funds.99 The underlying funds are and application to be accompanied by that is typically contained in the separately registered as management other rule 482 advertisements for the contract prospectus? We note, for investment companies on Form N–1A underlying funds because whether the example, that the fee table of recently and offer their shares through separate delivery of the additional rule 482 adopted Form N–6 for variable life prospectuses. The exception from the advertisements is made together with insurance policies requires disclosure of prohibition on applications for variable the contract material or separately from the range of expenses of all underlying insurance contracts permits an it is a question of form, rather than funds offered through a policy rather application for the contract (which substance. than the expenses of each fund and that provides for investor allocation of We believe that it would be useful to the Commission has proposed purchase payments to specific clarify the ambiguities in the scope of conforming amendments to the fee table underlying funds) to accompany the the insurance exception from the of Form N–4 for variable annuities.102 contract prospectus, even though the application prohibition of rule 482, so IV. Cost/Benefit Analysis contract prospectus constitutes a rule that issuers of variable insurance 482 advertisement for the underlying products may operate with greater The Commission is sensitive to the mutual funds and even though certainty. Therefore, we request costs and benefits associated with its prospectuses for the underlying funds comment on this issue. rules. The Commission requests do not accompany the contract We request comment on rule comment and empirical data regarding prospectus.100 482(a)(5)(i) relating to variable the costs and benefits of the proposed In recent years, members of the insurance products. amendments to the advertising rules. • Should rule 482 advertisements for variable insurance industry have A. Introduction requested that the Commission staff the underlying funds that are not clarify the scope of the variable contained in the contract prospectus The Commission is proposing rule insurance exception from the itself be permitted to be delivered amendments under the Securities Act application prohibition of rule 482. By simultaneously with the contract and the Investment Company Act. To its terms, the exception permits a prospectus and accompanying purchase provide funds with the ability to contract application to accompany a application? disclose more timely information in rule 482 advertisement for the • Should we amend rule 482 to advertisements, the proposed underlying funds only when the rule explicitly permit this practice, or should amendments would remove the 482 advertisement is a part of the we amend rule 482 to explicitly prohibit ‘‘substance of which’’ requirement contract prospectus itself. Members of this practice? contained in rule 482 under the • Particularly in light of the fact that Securities Act, and would rescind the 96 Rule 482(a)(3)(i) [17 CFR 230.482(a)(3)(i)]; we are proposing to remove the provisions in rule 134 under the proposed paragraph (b)(1)(i) of rule 482. ‘‘substance of which’’ requirement from Securities Act that apply to funds. In 97 1986 Advertising Proposing Release, supra note rule 482, are there relevant differences addition, the proposed amendments 24, at 34391 nn. 57–60 and accompanying text. between permitting a contract would reinforce the antifraud 98 Rule 482(a)(5)(i) [17 CFR 230.482(a)(5)(i)]; proposed paragraph (c)(1) of rule 482. A rule 482 prospectus that is filed with the protections in the fund advertising advertisement may also be accompanied by an Commission and subject to strict rules, and would require enhanced application when the advertisement is used with a liability under Section 11 of the disclosure of certain information in profile permitted by rule 498 under the Securities Securities Act to be accompanied by an fund advertisements designed to Act. Rule 482(a)(5)(ii) [17 CFR 230.482(a)(5)(ii)]. See proposed paragraph (c)(2) of rule 482. application and permitting additional encourage advertisements that convey 99 See Item 5(c) of Form N–4 and Item 4(c) of rule 482 advertisements for the balanced information to prospective Form N–6 (requiring brief description of each underlying funds that are not subject to investors. Finally, the proposed underlying mutual fund offered through the Section 11 liability to be accompanied amendments would make certain contract). See also Investment Company Act 101 Release No. 14575 (June 14, 1985) [50 FR 26415, by an application? organizational changes to rule 482 and 26155 n. 48 and accompanying text (June 25, 1985)] (describing treatment of description of underlying 101 Section 11 imposes strict liability on issuers, 102 Investment Company Act Release No. 25522, mutual funds in contract prospectus as omitting as well as other persons, including directors and supra note 89 (adopting Form N–6); Investment prospectuses). underwriters, for material misstatements and Company Act Release No. 25521 (Apr. 12, 2002) [66 100 See 1986 Advertising Proposing Release, supra omissions contained in the registration statement. FR 19885 (Apr. 23, 2002)] (proposing changes to fee note 87, at 34391 n. 60. 15 U.S.C. 77k. table of Form N–4).

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technical amendments to the Rule 134 Another 89,143 hours, or $3,653,615 × registration forms. In contrast to rule 482, rule 134 is a (89,143 hours $40.986 wage rate) in internal costs, are imposed by the 1. Present Fund Advertising Rules content-based rule that specifies certain categories of information that a fund requirement that funds comply with Like most issuers of securities, when may advertise. Originally, rule 134 rule 34b–1 under the Investment an investment company (‘‘fund’’) offers communications, known as ‘‘tombstone Company Act, which requires that any its shares to the public, its promotional advertisements,’’ were intended merely performance data included in efforts become subject to the advertising to announce the existence of a public supplemental sales literature be restrictions of the Securities Act. offering and serve as a simple means for accompanied by performance data Congress imposed these restrictions so soliciting inquiries for the statutory computed using the standardized that investors would base their prospectus.109 Over the years, however, formulas for advertising performance investment decisions on the full 114 the Commission has amended rule 134, under rule 482. The Commission disclosures contained in the ‘‘statutory broadening the permissible categories of estimates that external costs presently prospectus,’’ which Congress intended information that a fund may include in associated solely with the regulatory to be the primary selling document.103 its tombstone advertisements.110 Today, burden of complying with the The advertising restrictions of the 115 funds may advertise a broad range of advertising rules are negligible. The Securities Act cause special problems information under rule 134, other than benefits and costs associated with the for many investment companies, performance information.111 proposed amendments affect these totals particularly for open-end management as indicated in the discussion that investment companies (‘‘mutual funds’’) 2. Present Burden of Fund Advertising follows. and other investment companies that Rules B. Benefits continuously offer and sell their shares. Based on the Commission staff’s For these funds, the advertising discussions with certain fund The proposed amendments would restrictions apply continuously because complexes and its experience with the modify rule 482 of the Securities Act the offering process, in effect, is various types of investment companies and related rules and forms, to provide continuous. To address these problems, registered with the Commission, we more timely, informative, and balanced the Commission has adopted a number estimate that the current annual hour information in fund advertising for the of special advertising rules for burden associated with rule 482 and benefit of investors. The amendments investment companies, including rule rule 134 is approximately 40.275 hours would also simplify and clarify the 482 and rule 134. per investment company.112 For the advertising rules, thus reducing regulatory compliance costs, and these Rule 482 industry overall, this represents 225,015 (40.275 hours per investment company cost savings may be passed on to The Commission adopted rule 482 × 5,587 investment companies) burden investors. under the authority of section 10(b) of hours, or $9,222,465 (225,015 hours × the Securities Act, which permits the 1. Enhanced Disclosure of Information $40.986 wage rate) in internal costs.113 Commission to adopt rules that provide to Investors for a prospectus that omits ‘‘in part’’ or Currently, the regulations concerning subject to section 12(a)(2) of the Securities Act [15 ‘‘summarizes’’ information in the U.S.C. 77l(a)(2)], which imposes liability for advertising include significant statutory prospectus.104 Rule 482 materially false or misleading statements in a disclosure requirements. The proposed permits investment companies to prospectus or oral communication, subject to a amendments would enhance the advertise any information ‘‘the reasonable care defense. Rule 482 advertisements disclosure provided to investors in fund are also subject to the antifraud provisions of the substance of which’’ is included in the federal securities laws. advertising in several respects: 105 • statutory prospectus. The theory 109 See supra note 26. Availability of Monthly behind the ‘‘substance of which’’ 110 See supra note 27. Performance Figures. Advertisements requirement is that an advertisement 111 Because the Commission adopted rule 134 would have to disclose the availability cannot be one that ‘‘omits’’ information under section 2(a)(10)(b) of the Securities Act, rule of updated monthly performance figures 134 advertisements are not considered by a toll-free telephone number, and, if from the statutory prospectus unless all prospectuses. As a result, rule 134 advertisements of the information in the advertisement do not create liability under section 12(a)(2) of the is derived from information in the Securities Act, which by its terms applies only to paralegal and compliance inspectors would account statutory prospectus.106 Significantly, prospectuses and oral communications. Rule 134 for the remaining 50% in equal ratio, yielding a advertisements, however, are subject to liability weighted wage rate of $30.36 (($38.95 × .50) + rule 482 provides a means for mutual under the antifraud provisions of the federal ($20.94 × .25) + (22.60 × .25) = $30.36). Securities funds to advertise performance securities laws. Industry Association, Report on Office Salaries in information according to standardized 112 This figure was determined based on averages the Securities Industry 2000 (Oct. 2000); Securities formulas.107 Rule 482 also requires derived from information from nine fund Industry Association, Report on Management & complexes that offer mutual funds or variable Professional Earnings in the Securities Industry advertisements to comply with certain insurance products. Because there was little data for 2000 (Oct. 2000). This weighted wage rate was then disclosure requirements, particularly closed-end funds, the burden hours for closed-end adjusted upward by 35% for overhead, reflecting when presenting performance figures.108 funds were based on estimates from one fund the costs of supervision, space, and administrative complex that offers closed-end funds and the support, to obtain the total per hour internal cost Commission staff that these funds would incur of $40.986 ($30.36 × 1.35 = $40.986). 103 ‘‘Statutory prospectus’’ refers to the full approximately 8% of the burden of open-end funds. 114 17 CFR 270.34b–1. These estimates are based prospectus required by Section 10(a) of the 113 on the number of pieces of sales literature filed Securities Act. 15 U.S.C. 77j(a). These figures are based on a Commission estimate of 5587 investment companies and an annually with the Commission and the NASD, and 104 15 U.S.C. 77j(b). See also 1979 Advertising estimated hourly wage rate of $40.986. The estimate the estimated wage rate described above in note Adopting Release, supra note 18. of the number of investment companies is based on 113. 105 Rule 482(a)(2) under the Securities Act [17 data derived from the Commission’s EDGAR filing In addition, Rule 156 under the Securities Act [17 CFR 230.482(a)(2)]. system. The estimated wage rate figure is based on CFR 230.156] is an interpretive regulation giving 106 1977 Advertising Proposing Release, supra published hourly wage rates for in-house attorneys guidance as to whether sales literature is materially note 20, at 30380. ($38.95), paralegals ($20.94), and compliance misleading. There is no cost associated directly 107 See supra note 21. inspectors ($22.60) and the estimate, based on the with this rule. 108 Because a rule 482 advertisement is a Commission staff’s discussions with certain fund 115 External costs might include, for example, prospectus under section 10(b) of the Securities Act complexes, that attorneys would account for 50% costs of hiring outside counsel or accountants, or [15 U.S.C. 77j(b)], a rule 482 advertisement is of hours spent on advertising regulation and that purchasing new equipment.

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available, a website where an investor or, with regard to television or radio rule 34b–1 under the Investment may obtain performance data current to advertisements, presented in close Company Act to reemphasize the the most recent month-end.116 Easy proximity to the performance data.120 separate applicability of the antifraud access to and awareness of this The length of and the date of the last provisions of the federal securities laws. information would benefit investors not day in the base period used in In addition, the proposed amendments only by providing potentially more computing yield quotations, average would reorganize and modify rule 482 accurate and timely performance data annual total returns, after-tax returns, to make it easier for funds to apply, by and reducing the ability of funds to and other performance measures would adding headings, reordering provisions, selectively use performance data, but have to be adjacent to the performance and clarifying certain language. also by highlighting for investors the data.121 As with other disclosure The proposed amendments to rule limitations of relying too heavily on any requirements, this provision would help 482 may aid funds and others in one set of performance figures. investors to more easily find understanding and complying with the • Warning Legend. If an information necessary to evaluate the advertising rules, making it easier and advertisement provides performance performance figures shown and would cheaper for funds to advertise. This figures, the proposed amendments help to remind investors of the may, in turn, contribute to an increased would require the inclusion of an limitations of performance data. flow of useful investment information to amended legend stating that past The benefits of these enhanced investors, which may lead to better- performance does not guarantee future disclosure requirements to investors informed investment decisions and results, and that current performance may be limited by the extent to which amplify the previously discussed may be lower or higher than the data funds currently provide this disclosure benefits of efficient asset allocation.123 quoted.117 This legend would benefit voluntarily. Staff discussions with Although difficult to quantify, this investors by making them more aware of members of the fund industry indicate easing of regulation may provide some the limitations of relying on that most investment companies already reduction of burden to the funds that performance data for investment comply with many of the requirements choose to advertise. We request decisions, and thus may result in more of the proposed amendments, by, for comment on the nature and magnitude informed investment decisions. example, calculating performance data of the benefits resulting from this • Availability of Charge and Expense on at least a monthly basis, inserting reduction of regulatory burden. Information. Advertisements would warnings in advertisements that past 3. Elimination of the ‘‘Substance of have to highlight the availability of performance is no guarantee of future Which’’ Requirement and the Rescission information concerning charges and performance, and operating websites of Rule 134 Provisions That Apply to expenses in the statutory prospectus.118 and telephone call banks. This provision would benefit investors Nevertheless, the enhanced disclosure Funds by providing easy access to an requirements would provide two To simplify the current structure of important factor that would affect their benefits to investors. To the extent fund advertising rules and to provide returns, which in turn would allow investment decisions are made based on funds the ability to disclose more timely investors to more easily compare the advertising, the improved disclosure information in advertisements, the costs of competing funds. would result in investors making better proposed amendments would also • Prominence Requirements. informed investment decisions, and remove the ‘‘substance of which’’ Advertisements would be required to therefore in a more efficient distribution limitation contained in rule 482, present certain disclosures, including of assets by investors among different allowing funds to include in their 482 those discussed above, (i) in a size and funds. The transparency resulting from advertisements material that is not type style at least as prominent as that the enhanced disclosure in fund included in the statutory prospectus. used in the major portion of the advertising may, in turn, also contribute These amendments would render the advertisement, or (ii) in the case of radio to increased competition among funds current distinction between rule 482 or television advertisements, with and result in a more efficient allocation and rule 134 advertisements emphasis equal to that used in the major of resources among competing unnecessary. As such, the proposed portion of the advertisement.119 This investment products. Although it is not amendments would also rescind the provision would ensure that advertisers possible to quantify the beneficial provisions of rule 134 that apply to do not marginalize or minimize the effects of more efficient allocation of funds. presentation of the required disclosure investors’ assets and increased The elimination of the ‘‘substance of described above. The provision also competition, they may be significant, which’’ requirement would enable helps to ensure some uniformity given the size of the mutual fund funds to avoid the need to include or between different advertisements, industry.122 We request comment on the update advertising related information facilitating investors’ ability to compare nature and magnitude of the benefits to in their prospectus or SAI, both in the the products of competing funds. investors resulting from enhanced initial registration statements and in • Proximity Requirement. In addition, disclosure of information that would be post-effective amendments, before the required disclosures regarding required by the proposed amendments. issuing an advertisement to the public. performance data would have to be This would reduce filing costs for funds, 2. Simplification and Clarification of including both internal costs and identified in the body of the Fund Advertising Rules advertisement in close proximity to the external costs such as outside legal fees. performance data and not in a footnote, The proposed amendments would add clarifying language to rule 482 and 123 The trade-off between lower advertising burdens and increased advertising activity is 116 rule 156 under the Securities Act and Proposed paragraph (g)(2) of rule 482. complex and further complicated by business 117 Proposed paragraph (b)(3)(i) of rule 482. cycles and marketing strategy among other factors. 118 Proposed paragraph (b)(1)(i) of rule 482. This 120 Id. We believe, however, that investors and funds disclosure would also be required in an 121 Proposed paragraphs (d)(1)(iv), (d)(2)(v), would enjoy benefits in any event—either resources advertisement used with a profile pursuant to rule (d)(3)(iv), (d)(4)(vi), and (d)(5)(v) of rule 482. would be saved in reducing the costs and burdens 498 under the Securities Act. Proposed paragraph 122 See Investment Company Institute, Trends in of advertising or they would be spent to increase (b)(1)(ii) of rule 482. Mutual Fund Investing: March 2002, supra note 93 the amount and timeliness of information provided 119 Proposed paragraph (b)(5) of rule 482. (assets of mutual funds total $7.1 trillion). to investors in advertising.

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The proposed amendments would also magnitude of any other benefits that costs.127 In total this represents a one- reduce the cost to the funds of printing would result from the proposed time cost of approximately 12,180 and distributing prospectuses and SAIs. amendments. internal burden hours (translating into The elimination of unnecessary material approximately $499,209 (12,180 hours × C. Costs from the prospectus or SAI may also $40.986 wage rate) in internal costs) and help investors and others more easily The Commission estimates that the $13,503,779 ($2,417 cost per investment understand the remaining information. costs of the proposed amendments, in company × 5,587 investment Finally, the proposed rescission of the the aggregate, would be minimal and companies) in external costs.128 We rule 134 provisions that apply to funds limited in duration. The Commission request comment on this estimate, and would consolidate the regulation of estimates that funds would incur one- on the nature and magnitude of any most fund advertising in one rule as rule time costs in modifying their current other costs to funds resulting from the 482, as amended, would then cover rule 482 advertising to meet the new proposed amendments. advertisements now covered by rule disclosure and presentation 134. This simplification would requirements, although many funds D. Conclusion contribute to the benefits of easier and already provide the disclosure that The Commission expects that the cheaper advertising as discussed in would be required and make available proposed advertising rule amendments section IV.B.2 (‘‘Simplification and more current performance information will encourage more informed and Clarification of Advertising Rules’’) voluntarily. For example, funds may efficient investing, while easing the above, principally by removing the have to modify their layouts and regulatory burden on fund advertising, unnecessary restrictions on the content typesetting in order to convert existing and that these likely benefits would of the advertisements and the advertisements to meet the requirements justify the associated costs. To assist in unnecessary distinction with regard to of the rule, or alternatively, replace the evaluation of the costs and benefits their legal classification. The transfer of existing advertisements more quickly that may result from the proposed fund advertising regulation from rule than they otherwise would. However, amendments, the Commission requests 134 to rule 482 may also enhance the proposed amendments would allow that commenters provide views and data investor protection by subjecting all a 90-day transition period, enabling relating to any anticipated costs and fund advertisements to potential civil funds to come into compliance with the benefits associated with these proposals. new requirements in their next liability under section 12(a)(2) of the V. Consideration of Effects on 124 generation of quarterly advertisements Securities Act. The Commission Efficiency, Competition, and Capital with smaller conversion or replacement requests comment on the increase in Formation potential liability under section 12(a)(2) costs. for issuers that currently rely on rule In addition, the requirement for funds Section 2(c) of the Investment 134 for their advertising. to provide access to performance figures Company Act, section 2(b) of the The Commission estimates that, on an that are current as of the last month end Securities Act, and Section 3(f) of the annual basis, these benefits will save may also impose costs, some of which Securities Exchange Act of 1934 funds approximately 1.96 burden hours, would be ongoing, both to generate such (‘‘Exchange Act’’) require the or $80.33, per investment company in figures on a monthly basis and to Commission, when engaging in internal costs but only negligible provide the information by a toll-free rulemaking that requires it to consider amounts in external costs. We estimate telephone number. This could include or determine whether an action is that 5587 investment companies will be costs for computer time, accounting necessary or appropriate in the public affected by the proposed amendments, personnel, information technology staff, interest, to consider, in addition to the and, thus, the Commission estimates and additional computer and telephone protection of investors, whether the that the annual internal burden equipment. However, many, if not most, action will promote efficiency, associated with rule 482, for purposes of funds already provide this or more competition, and capital formation.129 the Paperwork Reduction Act, will current performance information The proposed amendments seek to decrease by approximately 10,950 (1.96 through these means and, therefore, the improve fund advertising by enhancing hours per investment company × 5,587 marginal cost for most funds for making disclosure requirements and by investment companies) burden hours.125 updated performance information simplifying and clarifying the rules, These burden hours represent a available is expected to be negligible. including elimination of the ‘‘substance monetary savings of approximately The elimination of the ‘‘substance of of which’’ requirement. These changes $448,797 (10,950 hours × $40.986 wage which’’ requirement and the rescission may improve efficiency. The rule rate) per year.126 We request comment of rule 134 as applicable to funds may simplifications may lower the regulatory on this estimate and on the nature and require some funds to incur costs to burden on funds engaged in advertising, convert many of their tombstone freeing resources for more productive 124 The benefits of potential direct investor suits advertisements to rule 482 uses. For example, funds would no in both remedying fraudulent advertising by funds advertisements. These costs, however, longer have to update their prospectuses and deterring such advertising in the future are should be minimal and non-recurring, or SAIs in order to change the types of difficult to quantify, but may be significant. The benefits would be reduced to the extent that the since the rule 482 requirements would performance information in potential liability would increase litigation and permit advertisements that are not insurance costs for funds. However, because suits significantly different from those 127 These figures are based on averages derived based on misleading advertising are relatively rare, currently permitted under current rule from information gathered from several members of we estimate that this cost would be minimal. 134. the fund industry by the Commission staff and from 125 The estimate of the number of investment the staff’s experience with the various advertising companies is based on data derived from the The Commission estimates the one- rules. Internal costs would include, for example, the Commission’s EDGAR filing system. The estimate of time switchover costs for each cost of reviewing all fund advertisements for the decrease in burden hours is based on investment company attributable to the compliance with the revised rules. External costs information gathered from the fund industry by the proposed amendments would be would include, for example, the costs of typesetting Commission staff and from the staff’s experience and printing for new fund advertisements. approximately 2.18 hours, or $89.35 128 with the various advertising regulations. × See discussion in note 113, supra, regarding 126 See discussion in note 113, supra, regarding (2.18 hours $40.986 wage rate), in wage rate. wage rate. internal costs, and $2,417 in external 129 15 U.S.C. 77b(b), 78c(f), and 80a–2(c).

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advertisements. The enhanced Accounts Organized as Unit Investment information concerning charges and disclosure requirements may provide Trusts’’; (v) ‘‘Form N–6 Under the expenses and requiring an amended greater and timelier access by investors Investment Company Act and the legend warning that past performance to updated performance figures, which Securities Act of 1933, Registration does not guarantee future results. The would promote more efficient allocation Statement of Insurance Company proposed amendments would also set of investments by investors and more Separate Accounts Registered as Unit forth requirements ensuring that funds efficient allocation of assets among Investment Trusts that Offer Variable present these and other required competing funds. The proposed Life Insurance Policies’’; and (vi) ‘‘Rule disclosures at least as prominently as amendments may also improve 34b–1 of the Investment Company Act the material included in the body of the competition, as enhanced disclosure of 1940, Sales Literature Deemed to Be advertisement. Second, if a fund may prompt funds to seek to provide Misleading.’’ A new collection of advertisement includes performance better-informed investors with information is being created entitled data, the fund would have to make improved products and services. ‘‘Rule 482 under the Securities Act of available to investors month-end Finally, the effects of the proposed 1933, Advertising by an Investment performance figures by a toll-free amendments on capital formation are Company.’’131 An agency may not telephone number, and disclosed the unclear. Although, as noted above, we conduct or sponsor, and a person is not availability of month-end performance believe that the proposed amendments required to respond to, a collection of data in the advertisement. Third, the would benefit investors, the magnitude information unless it displays a proposed amendments would add of the effect of the proposed currently valid OMB control number. clarifying language to rule 482 under the amendments on efficiency, competition, Form N–1A (OMB Control No. 3235– Securities Act and rule 34b–1 under the and capital formation is difficult to 0307), Form N–2 (OMB Control No. Investment Company Act to quantify, particularly given that most 3235–0026), Form N–3 (OMB Control reemphasize the separate applicability funds may already comply with at least No. 3235–0316), Form N–4 (OMB of the antifraud provisions of the federal some of the new disclosure Control No. 3235–0318), and Form N–6 securities laws, and would amend rule requirements. (OMB Control No. 3235–0503) were 156 under the Securities Act to provide We request comment on whether the adopted pursuant to section 5 of the further guidance regarding the factors to proposed amendments, if adopted, Securities Act [15 U.S.C. 77e] and be weighed in determining whether a would promote efficiency, competition, section 8(a) of the Investment Company statement involving a material fact in and capital formation. Commenters are Act [15 U.S.C. 80a–8(a)]. Rule 482 of investment company sales literature is requested to provide empirical data and Regulation C was adopted pursuant to or might be misleading. Fourth, to allow other factual support for their views if section 10(b) of the Securities Act [15 funds the ability to disclose more timely possible. U.S.C. 77j(b)]. Rule 34b–1 (OMB Control information in advertisements, the No. 3235–0346) was adopted pursuant proposed amendments would remove VI. Paperwork Reduction Act to section 34(b) of the Investment the ‘‘substance of which’’ limitation A. Introduction Company Act [15 U.S.C. 80a–33(b)]. contained in rule 482 and would The proposed amendments would rescind the provisions in rule 134 under Certain provisions of the proposed modify rule 482 of the Securities Act the Securities Act that apply to funds. amendments contain ‘‘collection of and related rules and forms, to provide Fifth, the proposed amendments would information’’ requirements within the more timely, understandable, and clarify portions of rule 482 (without meaning of the Paperwork Reduction balanced information in fund changing their content) by adding Act of 1995 [44 U.S.C. 3501, et seq.], advertising for the benefit of investors, headings, reordering provisions, and and the Commission is submitting the while simplifying and clarifying the simplifying certain provisions. Finally, proposed collections of information to advertising rules for the benefit of the amendments would make technical the Office of Management and Budget funds.132 First, the proposed and conforming changes to Forms N– (‘‘OMB’’) for review in accordance with amendments would enhance the 1A, N–3, N–4, and N–6 to reflect all the 44 U.S.C. 3507(d) and 5 CFR 1320.11. disclosure that funds would be required rule changes listed above. The titles for the existing collections of to provide in advertisements, including The analysis in this PRA summary is information are: (i) ‘‘Form N–1A under by highlighting the availability of divided in two sections. Section VI.B. the Investment Company Act of 1940 (‘‘The Registration Forms Burden’’) and Securities Act of 1933, Registration 131 The proposed amendments would modify rule discusses the current PRA burden Statement of Open-End Management 482, which is part of Regulation C under the attributable to the fund advertising Investment Companies’’; (ii) ‘‘Form N– Securities Act of 1933. Regulation C describes the rules, which is presently allocated to the 2—Registration Statement of Separate disclosure that must appear in registration collections of information for the Accounts Organized as Management statements under the Securities Act and Investment Company Act. The Paperwork Reduction Act various registration forms, and the 130 Investment Companies’’ (iii) ‘‘Form (‘‘PRA’’) burden associated with rule 482 has transfer of this burden to a new N–3—Registration Statement of Separate previously been included in the various investment collection of information category for Accounts Organized as Management company registration statement forms, not in rule 482. Section VI.C. (‘‘Change in Investment Companies’’; (iv) ‘‘Form N– Regulation C. However, because the proposed amendments would eliminate the rationale for Burden Attributable to Proposed 4—Registration Statement of Separate allocating the PRA burden for rule 482 to the Amendments’’) discusses the net change registration forms, the Commission proposes to in burden hours attributable to the 130 Although the proposed amendments would transfer the burden associated with rule 482 to a proposed amendments for both the new not amend Form N–2, that form is included in this new category. While this transfer and the Paperwork Reduction Act summary because the fluctuation in the numbers of filings would affect collection of information for rule 482 PRA burden for rule 482 has previously been the burden hours for the various forms, the and the existing collection of included in the various investment company proposed amendments to the forms would not have information for rule 34b–1. registration statement forms affected by rule 482, any effect on the burden hours for the forms. including Form N–2. As discussed below, the 132 The Commission is proposing amendments to B. The Registration Forms Burden Commission is transferring the PRA burden rules 134, 156, and 482 under the Securities Act, associated with rule 482 from all of these rule 34b–1 under the Investment Company Act, and Presently, the PRA burdens imposed registration statement forms to a new rule 482 Forms N–1A, N–3, N–4, and N–6 under the by rule 482 are accounted for under the category. Investment Company Act and Securities Act. various registration forms used by

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investment companies affected by the be transferred from Form N–1A to the remaining Form N–2 PRA burden from rule: Form N–1A, Form N–2, Form N– new rule 482 collection of information the proposed amendments. The change 3, Form N–4, and Form N–6. We intend equal 177,514 ((23 hours × 193 in PRA burden resulting from the to remove these burden hours associated portfolios) + (23 hours × 7,525 proposed amendments is accounted for with rule 482 and place them in a portfolios)). After shifting the rule 482 under the new rule 482 collection of separate rule 482 category in the burden hours to a new collection of information. information, the total burden hours that following amounts: 3. Form N–3 remain allocated to Form N–1A for all The purpose of Form N–3 is to meet Form Hours purposes unassociated with rule 482 transferred would be 899,568 ((801 hours × 193 the registration and disclosure portfolios) + (99 hours × 7,525 requirements of the Securities Act and Form N–1A ...... 177,514 portfolios)). the Investment Company Act and to Form N–2 ...... 1,014 enable funds to provide investors with Form N–3 ...... 792 Except for the transfer of PRA burden Form N–4 ...... 36,630 from the Form N–1A to the new information necessary to evaluate an Form N–6 ...... 9,065 collection of information for rule 482, investment in the fund. The the Commission estimates no effect on respondents to this information Total hours to be transferred the remaining PRA burden for Form N– collection are separate accounts, to new rule 482 category .. 225,015 1A from the proposed amendments. The organized as management investment change in PRA burden resulting from companies and offering variable The information required to be filed the purposed amendments is accounted annuities, registering with the with the Commission pursuant to the for under the new rule 482 collection of Commission. Compliance with the information collections contained in the information. disclosure requirements of Form N–3 is registration forms permits the mandatory. Responses to the disclosure verification of compliance with 2. Form N–2 requirements are not confidential. securities law requirements and assures The purpose of Form N–2 is to meet The current annual hour burden for the public availability and the registration and disclose preparing an initial registration dissemination of the information. requirements of the Securities Act and statement on Form N–3 is 910.5 hours the Investment Company Act and to per portfolio, and the Commission 1. Form N–1A enable funds to provide investors with attributes 3.3 of these burden hours per The purpose of Form N–1A is to meet information necessary to evaluate an portfolio to compliance with rule 482, the registration and disclosure investment in the fund. The reducing the remaining burden hours requirements of the Securities Act and respondents to this information per portfolio to 907.2.134 The current the Investment Company Act and to collection are closed-end funds annual hour burden for preparing post- enable funds to provide investors with registering with the Commission. effective amendments on Form N–3 is information necessary to evaluate an Compliance with the disclosure 151.7 hours per portfolio, and the investment in the fund. The requirements of Form N–2 is mandatory. Commission attributes 3.3 of these respondents to this information Responses to the disclosure burden hours per portfolio to rule 482, collection are open-end funds requirements are not confidential. reducing the remaining burden hours registering with the Commission. The current hour burden for preparing per portfolio to 148.4. The Commission Compliance with the disclosure an initial registration statement on Form estimates that, on an annual basis, no requirements on Form N–1A is N–2 is 542.4 burden hours per filing, initial registration statements will be mandatory. Responses to the disclosure and the current hour burden for filed on Form N–3 and 60 post-effective requirements are not confidential. preparing a post-effective amendment amendments, including 240 portfolios, The current hour burden for preparing on Form N–2 is 107.4 hours per filing. will be filed on Form N–3. Thus, the an initial Form N–1A filing is 824 The Commission attributes 5.7 of these burden hours attributable to rule 482 to burden hours per portfolio, and the burden hours per filing to compliance be transferred from Form N–3 to the Commission attributes 23 of these with rule 482, reducing the burden new rule 482 collection of information burden hours per portfolio to hours per filing to 536.7 and 101.7, equal 792 (3.3 hours × 240 portfolios). compliance with rule 482, reducing the respectively. The Commission currently After shifting the rule 482 burden hours remaining burden hours per portfolio to estimates that, on an annual basis, 140 to a new collection of information, the 801.133 The current annual hour burden respondents file an initial registration total burden hours that remain allocated for preparing post-effective amendments statement on Form N–2 and 38 file post- to Form N–3 for all purposes on Form N–1A is 122 hours per effective amendments on Form N–2. unassociated with rule 482 would be portfolio, and the Commission attributes Thus, the burden hours attributable to 35,616 (148.4 × 240 portfolios). 23 of these burden hours per portfolio rule 482 to be transferred from N–2 to Except for the transfer of PRA burden to rule 482, reducing the remaining the new rule 482 collection of from Form N–3 to the new collection of burden hours per portfolio to 99. The information equal 1,014 ((5.7 hours × Commission estimates that, on an 140 filings) + (5.7 hours × 38 filings)). 134 Estimates of the burden hours attributable to annual basis, 193 portfolios file initial rule 482 for Forms N–3, N–4, and N–6 were derived After shifting the rule 482 burden hours by estimating the total burden hours for compliance registration statements on Form N–1A to a new collection of information, the with rule 482 for all variable insurance separate and 7,525 file post-effective total burden hours that remain allocated accounts, based on the staff’s discussions with a amendments on Form N–1A. Thus, the to Form N–2 for all purposes member of the variable insurance products industry burden hours attributable to rule 482 to that issues both variable annuities and variable life unassociated with rule 482 would be insurance policies. This estimate of the total rule 79,003 ((536.7 hours × 140 filings) + 482 burden hours for variable insurance products 133 The estimate of the burden hours attributable (101.7 hours × 38 filings)). filings was allocated among Form N–3, Form N–4 to compliance with rule 482 for filings on Forms N– Except for the transfer of PRA burden and Form N–6 filings based on the ratio of burden 1A and Form N–2 are based on information hours previously allocated to each of these forms supplied to the Commission staff by members of the from Form N–2 to the new collection of for PRA purposes. However, we excluded burden fund industry and the staff’s experience with these information for rule 482, the hours attributable to initial filings on Form N–3 registration forms. Commission estimates no effect on the because we currently anticipate no such filings.

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information for rule 482, the new rule 482 PRA collection of information for rule 482, the Commission estimates no effect on the information. Commission estimates no effect on the remaining PRA burden for Form N–3 remaining PRA burden for Form N–6 5. Form N–6 resulting from the proposed resulting from the proposed amendments. The change in PRA The purpose of Form N–6 is to meet amendments. The change in PRA burden resulting from the proposed the registration and disclosure burden resulting from the proposed amendments is accounted for under the requirements of the Securities Act and amendments is accounted for under the new rule 482 PRA collection of the Investment Company Act and to new rule 482 PRA collection of information. enable separate accounts issuing information. variable life insurance policies to 4. Form N–4 provide investors with information C. Change in Burden Attributable to The purpose of Form N–4 is to meet necessary to evaluate an investment in Proposed Amendments the registration and disclosure a policy. The respondents to this The information required by the requirements of the Securities Act and information collection are separate proposed amendments to the the Investment Company Act and to accounts, organized as unit investment advertising rules is primarily for the use enable separate accounts issuing trusts and offering variable life and benefit of investors. The variable annuity contracts to provide insurance policies, registering with the Commission is concerned that investors investors with information necessary to Commission. Compliance with the receive information in advertisements evaluate an investment in a contract. disclosure requirements of Form N–6 is that is accurate, balanced, timely, not The respondents to this information mandatory. Responses to the disclosure misleading, and otherwise appropriate collection are separate accounts, requirements are not confidential. and helpful in making investment organized as unit investment trusts and The current hour burden for preparing decisions. The additional information offering variable annuities, registering an initial registration statement on Form that would be required to be disclosed with the Commission. Compliance with N–6 is 800 burden hours per filing and to investors pursuant to the collection of the disclosure requirements of Form N– the hour burden for a post-effective information provisions of the rules 4 is mandatory. Responses to the amendment on Form N–6 is 100 hours affected by the proposed amendments, disclosure requirements are not per post-effective amendment filed as an would address these concerns regarding confidential. annual update, and 10 hours per post- investor protection. The current hour burden for preparing effective amendment filed for other an initial Form N–4 filing is 298 burden purposes. The Commission attributes 35 1. Rule 34b–1 hours per filing, and the Commission of these burden hours per filing to Rule 34b–1, including the proposed attributes 24.8 of these burden hours per compliance with rule 482 for both amendments, contains collection of filing to rule 482, reducing the initial registration statements and post- information requirements. The rule remaining burden hours per filing to effective amendments that are annual applies to supplemental sales literature, 273.2.135 The current annual hour updates.136 The Commission estimates i.e., sales literature that is preceded or burden for preparing post-effective no burden hours associated with rule accompanied by the statutory amendments on Form N–4 is 219.8 482 for additional post-effective prospectus and requires the inclusion of hours per filing, and the Commission amendments that are not annual standardized performance data in sales attributes 24.8 of these burden hours per updates. The Commission estimates literature that includes performance filing to rule 482, reducing the that, on an annual basis, 59 initial data. Compliance with rule 34b–1 is remaining burden hours per filing to registration statements will be filed on mandatory for every registered 195. The Commission estimates that, on Form N–6 and 500 post-effective investment company that issues an annual basis, 157 respondents file amendments will be filed on Form N– supplemental sales literature. Responses initial registration statements on Form 6, 200 as annual updates and 300 as to the disclosure requirements will not N–4 and 1320 respondents file post- additional post-effective be kept confidential. effective amendments on Form N–4. amendments.137 Thus, the burden hours We estimate that approximately Thus, the burden hours attributable to attributable to rule 482 to be transferred 37,000 responses are filed annually rule 482 to be transferred from Form N– from Form N–6 to the new rule 482 pursuant to rule 34b–1, and the burden 4 to the new rule 482 collection of collection of information equal 9,065 per response is 2.9 hours. The proposed information equal 36,630 ((24.8 hours × ((35 hours × 59 filings) + (35 hours × 200 amendments would change rule 34b–1 157 filings) + (24.8 hours × 1320 filings)). The total hour burden that only to add language to clarify the filings)). After shifting the rule 482 remains allocated to Form N–6 for all Commission’s present interpretation of burden hours to a new collection of purposes unassociated with rule 482 its rules, namely, that compliance with information, the total hour burden that would be 61,135 ((765 hours × 59 rule 34b–1 does not relieve the fund, remains allocated to Form N–4 for all filings) + (65 hours × 200 filings) + (10 underwriter, or dealer of the obligation purposes unassociated with rule 482 hours × 300 filings)). to ensure that sales literature is not false would be 300,292 ((273.2 hours × 157 Except for the transfer of PRA burden or misleading. This added language filings) + (195 hours × 1320 filings)). from Form N–6 to the new collection of merely confirms the present state of the Except for the transfer of PRA burden law and imposes no additional burden 138 from Form N–4 to the new collection of 136 See discussion in note 134, supra. hours. information for rule 482, the 137 Based on its analysis of data from the EDGAR Commission estimates no effect on the filing system from 2000–2001, the Commission 138 The secondary effect on the burden estimates that there are approximately 200 variable attributable to rule 34b–1 due to the proposed remaining PRA burden for Form N–4 life insurace policies, with respect to which as least amendments to rule 482 is estimated to be resulting from the proposed one post-effective amendment must be filed per negligible. Both before and after the proposed amendments. The change in PRA year. In addition, the Commission estimates, also amendments, rule 34b–1 would require any burden resulting from the proposed based on EDGAR filing data, that 300 additional performance data included in supplemental sales post-effective amendments are filed for these literature to be accompanied by performance data amendments is accounted for under the variable life insurance policies each year, generally computed using the standardized formulas for to make no-material changes to their registration advertising performance under rule 482. We 135 See discussion in note 134, supra. statements. Continued

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2. Rule 482 determine whether there are ways to performance. In light of the proposed Rule 482, including the proposed enhance the quality, utility, and clarity amendments to rule 482, the amendments, contains collection of of the information to be collected; and Commission is also proposing to rescind information requirements in that it (iv) evaluate whether there are ways to the provisions in rule 134 under the permits a fund to advertise information minimize the burden of the collection of Securities Act that apply to investment subject to certain disclosure information on those who are to companies. respond, including through the use of requirements. Compliance with rule 482 A. Reasons for, and Objectives of, automated collection techniques or is mandatory for every fund that issues Proposed Amendments rule 482 advertisements. Responses to other forms of information technology. The Commission has proposed the the disclosure requirements will not be Persons submitting comments on the amendments to the advertising kept confidential. collection of information requirements The Commission estimates that should direct the comments to the regulations described above to achieve 41,484 responses are filed annually by Office of Management and Budget, two separate objectives. First, the 5,587 funds pursuant to rule 482. The Attention: Desk Officer for the Commission intends to simplify and burden associated with rule 482 is Securities and Exchange Commission, clarify the rules governing fund presently included in the collections of Office of Information and Regulatory advertising. Specifically, the proposed information for the investment company Affairs, Room 3208, New Executive amendments would remove the registration statement forms, but the Office Building, Washington, DC 20503, ‘‘substance of which’’ requirement of Commission is transferring this PRA and should send a copy to Jonathan G. rule 482 and rescind the provisions of burden to a new rule 482 collection of Katz, Secretary, Securities and Exchange rule 134 that apply to investment information, with an annual burden of Commission, 450 5th Street, NW, companies, following Congress’ 225,015 hours. The proposed Washington, DC 20549–0609, with directive in NSMIA to adopt rules or amendments to rule 482 would affect reference to File No. S7–17–02. Request regulations allowing funds the use of a for materials submitted to OMB by the this total. The Commission estimates an section 10(b) prospectus that may Commission with regard to this increase of 4,060 annual burden hours, include information the substance of collection of information should be in or 0.727 hours per fund, would be which is not included in the statutory writing, refer to File No. S7–17–02, and 140 required to comply with the proposed prospectus. We are also proposing be submitted to the Securities and amendments to rule 482, as a result of technical amendments to reorganize and Exchange Commission, 450 Fifth Street, one-time switchover costs amortized clarify the language of rule 482. These NW, Washington, DC 20549, Attention: over a three-year period. The simplifying and clarifying amendments Records Management, Office of Filings Commission also estimates a decrease of are intended to aid funds and others in and Information Services. OMB is 10,950 annual burden hours, or 1.96 understanding and complying with the required to make a decision concerning hours per fund, resulting from the advertising rules, making it easier and the collection of information between 30 proposed amendments due to the cheaper for funds to advertise. and 60 days after publication of this Second, the Commission intends to simplification and clarification of rule release. Consequently, a comment to enhance the disclosure required in rule 482, including the removal of the OMB is best assured of having its full 482 advertising. Specifically, we ‘‘substance of which’’ requirement.139 effect if OMB receives it within 30 days propose to require advertisements to (i) The net result would be an annual after publication of this Release. highlight the availability of certain decrease of approximately 6,890 (4,060 additional information, such as charge hours increase—10,950 hours decrease) VII. Initial Regulatory Flexibility and expense information and updated hours. Analysis monthly performance figures; (ii) D. Request for Comments This Initial Regulatory Flexibility provide an amended warning legend; Analysis (‘‘Analysis’’) has been and (iii) present certain required We request your comments on the prepared in accordance with 5 U.S.C. accuracy of our estimates. Pursuant to disclosure with equal prominence as the 603, and relates to the Commission’s major portion of the advertisement. We 44 U.S.C. 3506(c)(2)(B), the Commission proposed rule and form amendments solicits comments to: (i) Evaluate are proposing these amendments under the Securities Act of 1933 and the because of our concern about fund whether the proposed collection of Investment Company Act of 1940 to information is necessary for the proper performance advertising that could provide investment companies with the create unrealistic investor expectations performance of the functions of the ability to disclose more timely agency, including whether the or mislead potential investors. The information in advertisements and to enhanced disclosure requirements are information will have practical utility; reinforce the antifraud protections that (ii) evaluate the accuracy of the intended to encourage advertisements apply to investment company that are clear, easy to use, and balanced, Commission’s estimate of burden of the advertisements. The proposed proposed collections of information; (iii) and to make investors aware of amendments would implement a important and timely information provision of NSMIA by eliminating the necessary to make informed investment estimate that the changes in types of disclosure and requirement in rule 482 under the presentation that would be required by the decisions. amendments to rule 482 would not affect the Securities Act that investment company amount of review necessary for funds to ensure advertisements contain only B. Legal Basis compliance with rule 34b–1. Therefore, all changes information the ‘‘substance of which’’ is We are proposing amendments to rule in burden associated with the proposed included in the statutory prospectus. amendments are accounted for under the category 134 pursuant to authority set forth in associated with the principal rule generating the The proposed amendments also would sections 2(a)(10) and 19(a) of the burden, i.e., the new rule 482 collection of require enhanced disclosure in Securities Act. We are proposing information. investment company advertisements amendments to rule 156 pursuant to 139 The estimates of the changes in the hours and are designed to encourage attributable to rule 482 are based on information authority set forth in section 19(a) of the supplied to the Commission staff by members of the advertisements that convey balanced mutual fund and variable insurance products information to prospective investors, 140 National Securities Markets Improvement Act, industry. particularly with respect to past supra note 7.

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Securities Act and sections 10(b) and to take advantage of economies of scale new provisions of rule 482; generating 23(a) of the Exchange Act. We are available to larger fund complexes.143 performance figures on a monthly basis; proposing amendments to rule 482 and making available the updated D. Reporting, Recordkeeping, and Other pursuant to authority set forth in monthly performance data by a toll-free Compliance Requirements sections 5, 10(b), 19(a), and 28 of the telephone number. The costs of making Securities Act and sections 24(g) and The proposed amendments would updated performance data available 38(a) of the Investment Company Act. modify the disclosure requirements could include expenses for computer We are proposing amendments to rule applicable to rule 482 advertisements. time, legal and accounting fees, 34b–1 pursuant to authority set forth in Advertisements would have to contain information technology staff, and sections 34(b) and 38(a) of the an amended warning legend, an additional computer and telephone Investment Company Act. We are explanation about where charges and equipment. However, we believe, based proposing amendments to Form N–1A, expense information could be found, on consultation with a number of fund Form N–3, Form N–4, and Form N–6 and, if performance figures are used, complexes, that many investment pursuant to authority set forth in information about where updated companies that presently advertise sections 5, 6, 7, 10, and 19(a) of the performance information could be already provide performance Securities Act and sections 8, 24(a), 30, found. In addition, the required information on a basis at least as current and 38 of the Investment Company Act. disclosure would have to be given as as monthly through these means and, much prominence in the advertisement therefore, that the marginal cost C. Small Entities Subject to the Rule as the major portion of the increases for most funds are expected to For purposes of the Regulatory advertisement. The proposed be minimal. Flexibility Act, an investment company amendments would also rescind the The Commission anticipates that the is a small entity if it, together with other disclosure requirements of rule 134 as proposed amendments would also investment companies in the same they apply to funds, but we expect that provide ongoing reductions in the group of related investment companies, this would not result in any appreciable compliance burden for all funds by has net assets of $50 million or less as change in the disclosure that funds clarifying the language of rule 482, of the end of its most recent fiscal make in their advertisements because eliminating the ‘‘substance of which’’ year.141 Approximately 225 out of 5587 present rule 134 advertisements would requirement, and consolidating fund investment companies meet this become rule 482 advertisements. advertising into one rule. These changes definition.142 After assessing the proposed would effect savings primarily by The Commission estimates, based on amendments in light of the current reducing the time and money funds now the staff’s discussions with members of reporting requirements and consulting spend on legal review and amending the fund industry, that approximately with representatives in the industry, the their SAIs to comply with the two-thirds of small entity funds do not Commission has considered the ‘‘substance of which’’ requirement in advertise and, thus, do not incur any potential effect that the proposed current rule 482. burdens or costs associated with rule amendments would have on the The Commission solicits comment on 482. For small entity funds that do preparation of advertisements. Without the effect the proposed amendments advertise, the Commission estimates an regard to the size of the entity, we would have on small entities. internal hour burden of approximately estimate that the proposed amendments E. Duplicative, Overlapping or 80 hours per small entity fund. This would result in a net decrease of 1.23 × Conflicting Federal Rules represents approximately 6,000 (80 hours, or $50.41 (1.23 hours $40.986 There are no rules that duplicate, hours × 75 small entities) hours, or wage rate), per investment company per overlap, or conflict with the proposed $246,915 (6,000 hours × $40.986 wage year in internal costs and a net increase amendments. rate) in internal costs, for all small of $805.67 per investment company per entities. The Commission estimates that year in external costs.144 F. Significant Alternatives The Commission estimates some one- the external cost burden associated with The Regulatory Flexibility Act directs rule 482 for small entities, as with other time switchover costs and burdens that would be imposed on all funds, but us to consider significant alternatives funds, is negligible. To the extent small that would accomplish our stated entities currently advertise, the burden which may have a relatively greater impact on smaller firms. These costs objective, while minimizing any and costs may affect them to a greater significant adverse impact on small extent because small entities are unable include the costs of altering existing advertisements, including those now issuers. In connection with the covered by rule 134, to comply with the proposed amendments, the Commission 141 17 CFR 270.0–10. considered the following alternatives: (i) 142 This estimate is based on figures compiled by The establishment of differing the Commission staff regarding investment 143 We note, however, that to the extent that the companies registered on Form N–1A, Form N–2, proposed amendments actually reduce the compliance or reporting requirements or Form N–3, Form N–4, and Form S–6. Form S–6 is regulatory burden of advertising, small entities may timetables that take into account the the form currently used by insurance company be encouraged to increase their advertising activity. resources available to small entities; (ii) 144 separate accounts registered as unit investment These figures are based on the Commission the clarification, consolidation, or trusts and that offer variable life insurance policies staff’s discussions with several fund complexes, to register their securities under the Securities Act. and represent the net of the switchover internal simplification of compliance and It will be replaced by new Form N–6. See hour burdens (12,180 hours (or 4,060 amortized)) reporting requirements under the Investment Company Act Release No. 25522, supra and external costs ($13,503,779 (or $4,501,259.67 proposed amendments for small note 89. In determining whether an insurance amortized)), amortized over 3 years, and the annual entities; (iii) the use of performance company separate account is a small entity for internal hour burden savings (10,950), which would purposes of the Regulatory Flexibility Act, the be attributable to the proposed amendments. rather than design standards; and (iv) an assets of insurance company separate accounts are The net annual hour savings would be 6,890 exemption from coverage of the aggregated with the assets of their sponsoring hours (4,060 amortized increase—10,950 annual proposed amendments, or any part insurance companies. Investment Company Act decrease) or 1.23 hours per investment company thereof, for small entities. rule 0–10(b) [17 CFR 270.0–10(b)]. Currently, no (6,890 hours/5,587 investment companies). The insurance company separate account filing on Form annual external costs would be $805.67 per The Commission believes at the N–3, Form N–4, or Form S–6 qualifies as a small investment company ($4,501,259.67/5,587 present time that special compliance or entity. investment companies). reporting requirements for small

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entities, or an exemption from coverage Final Regulatory Flexibility Analysis if Act [15 U.S.C. 80a–24(g) and 80a–37(a)]. for small entities, would not be the proposed amendments are adopted, The Commission is proposing appropriate or consistent with investor and will be placed in the same public amendments to rule 34b–1 pursuant to protection. The proposed disclosure file as comments on the proposed authority set forth in sections 34(b) and amendments would provide amendments themselves. Comments 38(a) of the Investment Company Act shareholders and the public with more should be submitted in triplicate to [15 U.S.C. 80a–33(b) and 80a–37(a)]. balanced information about a fund’s Jonathan G. Katz, Secretary, Securities The Commission is proposing performance. Different disclosure and Exchange Commission, 450 Fifth amendments to Form N–1A, Form N–3, requirements for small entities, such as Street, NW, Washington, DC 20549– Form N–4, and Form N–6 pursuant to reducing the level of disclosure that 0609. Comments also may be submitted authority set forth in sections 5, 6, 7, 10, small entities would have to provide electronically at the following E-mail and 19(a) of the Securities Act [15 shareholders in advertising, may create address: [email protected]. All U.S.C. 77e, 77f, 77g, 77j, and 77s(a)] and the risk that shareholders would not comment letters should refer to File No. sections 8, 24(a), 30, and 38 of the receive balanced information about a S7–17–02; this file number should be Investment Company Act [15 U.S.C. fund’s performance or would receive included on the subject line if E-mail is 80a–8, 80a–24(a), 80a–29, and 80a–37]. confusing, false, or misleading used. Comment letters will be available information. In addition, applying for public inspection and copying in the List of Subjects different standards for advertising by Commission’s Public Reference Room, 17 CFR Part 230 small and large funds might impede 450 Fifth Street, NW, Washington, DC Advertising, Investment companies, investors’ ability to adequately compare 20549–0102. Electronically submitted Reporting and recordkeeping funds. We believe it is important for the comment letters also will be posted on requirements, Securities. enhanced advertising disclosure that the Commission’s Internet web site would be required by the proposed (http://www.sec.gov).145 17 CFR Part 239 amendments to be provided to investors Reporting and recordkeeping by all funds, not just funds that are not VIII. Consideration of Impact on the requirements, Securities. considered small entities. Economy The Commission also notes that For purposes of the Small Business 17 CFR Parts 270 and 274 current advertising requirements, and Regulatory Enforcement Fairness Act of Investment companies, Reporting and its disclosure rules in general, do not 1996 (‘‘SBREFA’’),146 a rule is ‘‘major’’ recordkeeping requirements, Securities. distinguish between small entities and if it results or is likely to result in: other funds. In addition, we believe that • An annual effect on the economy of Text of Proposed Rule and Form it would be inappropriate to impose a $100 million or more; Amendments • Aa major increase in costs or prices different timetable on small entities for For the reasons set out in the complying with the requirements. for consumers or individual industries; preamble, the Commission proposes to The proposed amendments would or amend Title 17, Chapter II, of the Code also reduce the internal regulatory • Significant adverse effects on burden on all funds, including small competition, investment, or innovation. of Federal Regulations as follows. entities, by eliminating the ‘‘substance The Commission requests comment on PART 230—GENERAL RULES AND of which’’ requirement from rule 482 the potential impact of the proposed REGULATIONS, SECURITIES ACT OF and rescinding rule 134 provisions that amendments on the U.S. economy on an 1933 apply to funds, thereby consolidating annual basis. Commenters are requested and simplifying the advertising rules. to provide empirical data to support 1. The general authority citation for Small entities should benefit from these their views. Part 230 is revised to read as follows: amendments to the same degree as other IX. Statutory Authority Authority: 15 U.S.C. 77b, 77c, 77d, 77f, investment companies. Further 77g, 77h, 77j, 77r, 77s, 77z–3, 77sss, 78c, 78d, clarification, consolidation, or The Commission is proposing 78j, 78l, 78m, 78n, 78o, 78t, 78w, 78ll(d), simplification of the proposals for funds amendments to rule 134 pursuant to 78mm, 79t, 80a–8, 80a–24, 80a–28, 80a–29, that are small entities may be authority set forth in sections 2(a)(10) 80a–30, and 80a–37, unless otherwise noted. inconsistent with investor protection. and 19(a) of the Securities Act [15 * * * * * Finally, we do not consider using U.S.C. 77b(a)(10) and 77s(a)]. The 2. Section 230.134 is amended by: performance rather than design Commission is proposing amendments a. Removing the authority citation standards to be consistent with our to rule 156 pursuant to authority set following § 230.134; statutory mandate of investor protection forth in section 19(a) of the Securities b. Revising the introductory text of in the present context. Act [15 U.S.C. 77s(a)] and sections 10(b) § 230.134; and 23(a) of the Exchange Act [15 U.S.C. G. Solicitation of Comments c. Removing paragraphs (a)(3)(iii), 78j(b) and 78w(a)]. The Commission is (a)(13), and (e); The Commission encourages the proposing amendments to rule 482 d. Redesignating paragraphs (a)(3)(iv) submission of written comments with pursuant to authority set forth in and (a)(14) as paragraphs (a)(3)(iii) and respect to any aspect of this Analysis. sections 5, 10(b), 19(a), and 28 of the (a)(13), respectively; and Comment is specifically requested on Securities Act [15 U.S.C. 77e, 77j(b), e. In newly redesignated paragraph the number of small entities that would 77s(a), and 77z–3] and sections 24(g) (a)(13)(ii), revising the reference be affected by the proposed and 38(a) of the Investment Company ‘‘(a)(14)(i)’’ to read ‘‘(a)(13)(i)’’. amendments and the likely impact of The revision reads as follows: the proposals on small entities. 145 We do not edit personal, identifying Commenters are asked to describe the information, such as names or e-mail addresses, § 230.134 Communications not deemed a nature of any impact and provide from electronic submissions. Submit only prospectus. information that you wish to make publicly empirical data supporting the extent of available. The term prospectus as defined in the impact. These comments will be 146 Pub. L. No. 104–21, Title II, 110 Stat. 857 section 2(a)(10) of the Act (15 U.S.C. considered in the preparation of the (1996). 77b(a)(10)) does not include a notice,

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circular, advertisement, letter, or other Note to paragraph (a): The fact that an than the performance data quoted. The communication published or advertisement complies with this section legend should also identify a toll-free transmitted to any person after a does not relieve the investment company, (or collect) telephone number and, if underwriter, or dealer of the obligation to available, a website where an investor registration statement has been filed if it ensure that the advertisement is not false or contains only the statements required or misleading. For guidance about factors to be may obtain performance data current to permitted by this § 230.134. This weighed in determining whether statements, the most recent month-end. An § 230.134 does not apply to a notice, representations, illustrations, and advertisement for a money market fund circular, advertisement, letter, or other descriptions contained in investment may omit the disclosure about principal communication relating to an company advertisements are misleading, see value fluctuation; and investment company registered under § 230.156. In addition, an advertisement that (ii) If a sales load or any other the Investment Company Act of 1940 complies with this section is subject to the nonrecurring fee is charged, the legibility requirements of § 230.420. (15 U.S.C. 80a–1 et seq.) or a business maximum amount of the load or fee, development company as defined in (b) Required disclosure. This and if the sales load or fee is not section 2(a)(48) of the Investment paragraph describes information that is reflected, a statement that the Company Act (15 U.S.C. 80a–2(a)(48)). required to be included in an performance data does not reflect the * * * * * advertisement in order to comply with deduction of the sales load or fee, and 3. Section 230.156 is amended by: this section. that, if reflected, the load or fee would a. Removing the authority citation (1) Availability of additional reduce the performance quoted. following § 230.156; and information. An advertisement must (4) Money market funds. An b. Revising paragraph (b)(2)(i) to read include a statement that: advertisement for an investment as follows: (i) Identifies a source from which an company that holds itself out to be a investor may obtain a prospectus; money market fund must include the § 230.156 Investment company sales explains that the prospectus contains following statement: literature. more complete information about the An investment in the Fund is not * * * * * investment company, including charges insured or guaranteed by the Federal (b) * * * and expenses; and states that the Deposit Insurance Corporation or any (2) * * * prospectus should be read carefully other government agency. Although the (i) Portrayals of past income, gain, or before investing; or Fund seeks to preserve the value of your growth of assets convey an impression (ii) If used with a Profile, explains investment at $1.00 per share, it is of the net investment results achieved that the accompanying Profile contains possible to lose money by investing in by an actual or hypothetical investment information about the investment the Fund. which would not be justified under the company, including charges and A money market fund that does not circumstances, including portrayals that expenses; describes the procedures for hold itself out as maintaining a stable omit explanations, qualifications, investing in the investment company; net asset value may omit the second limitations, or other statements and indicates the availability of the sentence of this statement. necessary or appropriate to make the investment company’s prospectus. (5) Presentation. In a print portrayals not misleading; and (2) Advertisements used prior to advertisement, the statements required * * * * * effectiveness of registration statement. by paragraphs (b)(1) through (b)(4) of 4. Section 230.482 is revised to read An advertisement that is used prior to this section must be presented in a size as follows: effectiveness of the investment type at least as large as and of a style company’s registration statement or the different from, but at least as prominent § 230.482 Advertising by an investment determination of the public offering as, that used in the major portion of the company as satisfying requirements of price (in the case of a registration advertisement. In a radio or television section 10. statement that becomes effective advertisement, the statements required (a) Scope of rule. This section applies omitting information from the by paragraphs (b)(1) through (b)(4) of to an advertisement or other sales prospectus contained in the registration this section must be given emphasis material (advertisement) with respect to statement in reliance upon § 230.430A) equal to that used in the major portion securities of an investment company must include the ‘‘Subject to of the advertisement. The statements registered under the Investment Completion’’ legend required by required by paragraph (b)(3) of this Company Act of 1940 (15 U.S.C. 80a–1 § 230.481(b)(2). section must be presented in close et seq.) (1940 Act), or a business (3) Advertisements including proximity to the performance data, and, development company, that is selling or performance data. An advertisement in a print advertisement, must be proposing to sell its securities pursuant that includes performance data of an presented in the body of the to a registration statement that has been open-end management investment advertisement and not in a footnote. filed under the Act. This section does company or a separate account (6) Commission legend. An not apply to an advertisement that is registered under the 1940 Act as a unit advertisement that complies with this excepted from the definition of investment trust offering variable section need not contain the prospectus by section 2(a)(10) of the Act annuity contracts (trust account) must Commission legend required by (15 U.S.C. 77b(a)(10)), or a Profile under include the following: § 230.481(b)(1). § 230.498. An advertisement that (i) A legend disclosing that the (c) Use of applications. An complies with this section, which may performance data quoted represents past advertisement that complies with this include information the substance of performance; that past performance section may not contain or be which is not included in the prospectus does not guarantee future results; that accompanied by any application by specified in section 10(a) of the Act (15 the investment return and principal which a prospective investor may invest U.S.C 77j(a)), will be deemed to be a value of an investment will fluctuate so in the investment company, except that: prospectus under section 10(b) of the that an investor’s shares, when (1) Variable annuity and variable life Act (15 U.S.C. 77j(b)) for the purpose of redeemed, may be worth more or less insurance contracts. A prospectus section 5(b)(1) of the Act (15 U.S.C. than their original cost; and that current meeting the requirements of section 77e(b)(1)). performance may be lower or higher 10(a) of the Act (15 U.S.C. 77j(a)) by

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which a unit investment trust offers company’s registration statement under (ii) Is accompanied by quotations of variable annuity or variable life the Act (15 U.S.C. 77a et seq.) has been total return as provided for in paragraph insurance contracts may contain a in effect for less than one, five, or ten (d)(3) of this section; contract application although the years, the time period during which the (iii) In the case of any measure of prospectus includes information about registration statement was in effect is performance adjusted to reflect the an investment company in which the substituted for the period(s) otherwise effect of taxes, is accompanied by unit investment trust invests that, prescribed. The quotations must: quotations of total return as provided for pursuant to this section, is deemed a (i) Be based on the methods of in paragraph (d)(4) of this section; prospectus under section 10(b) of the computation prescribed in Form N–1A (iv) Is set out in no greater Act (15 U.S.C. 77j(b)); and (§§ 239.15A and 274.11A of this prominence than the required (2) Profile. An advertisement that chapter), N–3 (§§ 239.17a and 274.11b quotations of total return; and complies with this section may be used of this chapter), or N–4 (§§ 239.17b and (v) Adjacent to the measurement and with a Profile that includes, or is 274.11c of this chapter); with no less prominence than the accompanied by, an application to (ii) Be current to the most recent measurement, identifies the length of purchase shares of the investment calendar quarter ended prior to the and the last day of the period for which company as permitted under § 230.498. submission of the advertisement for performance is measured. (d) Performance data for non-money publication; (e) Performance data for money market funds. In the case of an open- (iii) Be set out with equal prominence; market funds. In the case of a money end management investment company and market fund: (1) Yield. Any quotation of the money or a trust account (other than a money (iv) Adjacent to the quotation and market fund’s yield in an advertisement market fund referred to in paragraph (e) with no less prominence than the shall be based on the methods of of this section), any quotation of the quotation, identify the length of and the computation prescribed in Form N–1A company’s performance contained in an last day of the one, five, and ten year (§§ 239.15A and 274.11A of this advertisement shall be limited to periods. chapter), N–3 (§§ 239.17a and 274.11b quotations of: (4) After-tax return. For an open-end of this chapter), or N–4 (§§ 239.17b and (1) Current yield. A current yield that: management investment company, 274.11c of this chapter) and may (i) Is based on the methods of average annual total return (after taxes computation prescribed in Form N–1A include: on distributions) and average annual (i) A quotation of current yield that, (§§ 239.15A and 274.11A of this total return (after taxes on distributions chapter), N–3 (§§ 239.17a and 274.11b adjacent to the quotation and with no and redemption) for one, five, and ten less prominence than the quotation, of this chapter), or N–4 (§§ 239.17b and year periods, except that if the 274.11c of this chapter); identifies the length of and the date of company’s registration statement under the last day in the base period used in (ii) Is accompanied by quotations of the Act (15 U.S.C. 77a et seq.) has been total return as provided for in paragraph computing that quotation; in effect for less than one, five, or ten (ii) A quotation of effective yield if it (d)(3) of this section; years, the time period during which the (iii) Is set out in no greater appears in the same advertisement as a registration statement was in effect is prominence than the required quotation of current yield and each substituted for the period(s) otherwise quotations of total return; and quotation relates to an identical base prescribed. The quotations must: (iv) Adjacent to the quotation and period and is presented with equal (i) Be based on the methods of with no less prominence than the prominence; or computation prescribed in Form N–1A quotation, identifies the length of and (iii) A quotation or quotations of tax- (§§ 239.15A and 274.11A of this the date of the last day in the base equivalent yield or tax-equivalent chapter); period used in computing the quotation. effective yield if it appears in the same (2) Tax-equivalent yield. A tax- (ii) Be current to the most recent advertisement as a quotation of current equivalent yield that: calendar quarter ended prior to the yield and each quotation relates to the (i) Is based on the methods of submission of the advertisement for same base period as the quotation of computation prescribed in Form N–1A publication; current yield, is presented with equal (§§ 239.15A and 274.11A of this (iii) Be accompanied by quotations of prominence, and states the income tax chapter), N–3 (§§ 239.17a and 274.11b total return as provided for in paragraph rate used in the calculation. of this chapter), or N–4 (§§ 239.17b and (d)(3) of this section; (2) Total return. Accompany any 274.11c of this chapter); (iv) Include both average annual total quotation of the money market fund’s (ii) Is accompanied by quotations of return (after taxes on distributions) and total return in an advertisement with a yield as provided for in paragraph (d)(1) average annual total return (after taxes quotation of the money market fund’s of this section and total return as on distributions and redemption); current yield under paragraph (e)(1)(i) of provided for in paragraph (d)(3) of this (v) Be set out with equal prominence this section. Place the quotations of total section; and be set out in no greater prominence return and current yield next to each (iii) Is set out in no greater than the required quotations of total other, in the same size print, and if there prominence than the required return; and is a material difference between the quotations of yield and total return; (vi) Adjacent to the quotations and quoted total return and the quoted (iv) Relates to the same base period as with no less prominence than the current yield, include a statement that the required quotation of yield; and quotations, identify the length of and the yield quotation more closely reflects (v) Adjacent to the quotation and with the last day of the one, five, and ten year the current earnings of the money no less prominence than the quotation, periods. market fund than the total return identifies the length of and the date of (5) Other performance measures. Any quotation. the last day in the base period used in other historical measure of company (f) Advertisements that make tax computing the quotation. performance (not subject to any representations. An advertisement for (3) Average annual total return. prescribed method of computation) if an open-end management investment Average annual total return for one, five, such measurement: company (other than a company that is and ten year periods, except that if the (i) Reflects all elements of return; permitted under § 270.35d–1(a)(4) of

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this chapter to use a name suggesting b. Revising the reference ‘‘(a)(6) of 9. Item 21 of Form N–1A (referenced that the company’s distributions are § 230.482’’ in paragraph (b)(1)(i) to read in §§ 239.15A and 274.11A) is amended exempt from federal income tax or from ‘‘(b)(3) of § 230.482’’; by: both federal and state income tax) that c. Revising the reference ‘‘(d)(1)(i) of a. Revising the introductory text of represents or implies that the company § 230.482’’ in paragraph (b)(1)(ii)(A) to paragraphs (a) and (b); and is managed to limit or control the effect read ‘‘(e)(1)(i) of § 230.482’’; b. Removing paragraphs (a)(5) and of taxes on company performance must d. Revising the reference (b)(7), to read as follows: accompany any quotation of the ‘‘§ 230.482(d)(1)(iii)’’ in paragraph company’s performance permitted by (b)(1)(ii)(B) to read ‘‘§ 230.482(e)(1)(iii)’; Form N–1A paragraph (d) of this section with e. Revising the reference ‘‘(d)(1)(i) of * * * * * quotations of total return as provided for § 230.482’’ in the first sentence of Item 21. Calculation of Performance in paragraph (d)(4) of this section. paragraph (b)(1)(ii)(C) to read ‘‘(e)(1)(i) (g) Timeliness of performance data. of § 230.482’’; Data All performance data contained in any f. Revising the reference ‘‘(e)(3) of (a) Money Market Funds. Yield advertisement must be as of the most § 230.482’’ in paragraph (b)(1)(iii)(A) to quotation(s) for a Money Market Fund recent practicable date considering the read ‘‘(d)(3) of § 230.482’’; included in the prospectus should be type of investment company and the g. Revising the reference ‘‘(e)(4) of calculated according to paragraphs media through which the data will be § 230.482’’ in paragraph (b)(1)(iii)(B) to (a)(1)–(4). conveyed, except that any read ‘‘(d)(4) of § 230.482’’; * * * * * h. Revising the reference ‘‘(e)(4) of advertisement containing total return (b) Other Funds. Performance § 230.482’’ in paragraph (b)(1)(iii)(C) to quotations will be considered to have information included in the prospectus read ‘‘(d)(4) of § 230.482’’; complied with this paragraph provided should be calculated according to i. Revising the reference ‘‘(e)(1) of that: paragraphs (b)(1)–(6). (1) The total return quotations are § 230.482’’ in paragraph (b)(1)(iii)(D) to current to the most recent calendar read ‘‘(d)(1) of § 230.482’’; * * * * * quarter ended prior to the submission of j. Revising the references ‘‘(e)(2)’’ and 10. Item 4 of Form N–3 (referenced in the advertisement for publication; and ‘‘(e)(1) of § 230.482’’ in paragraph §§ 239.17a and 274.11b) is amended by: (2) Total return quotations current to (b)(1)(iii)(E) to read ‘‘(d)(2)’’ and ‘‘(d)(1) a. Removing Item 4(c); and the most recent month ended three of § 230.482’’, respectively; b. Redesignating Item 4(d) as Item calendar days prior to the date of use are k. Revising the reference ‘‘(e)(3)(ii), 4(c). provided at the toll-free (or collect) (e)(4)(ii)’’ in paragraph (b)(3) to read 11. Item 25 of Form N–3 (referenced telephone number identified pursuant ‘‘(d)(3)(ii), (d)(4)(ii)’’; and in §§ 239.17a and 274.11b) is amended to paragraph (b)(3)(i). l. Adding a note following the by: (h) Filing. An advertisement that introductory text of § 270.34b–1 to read a. Removing Instruction 5 to complies with this section need not be as follows: paragraph (a); and filed as part of the registration statement b. Revising paragraphs (a) and (b), and § 270.34b–1 Sales literature deemed to be Instruction 6 to paragraph (b)(i), to read filed under the Act. misleading. as follows: Note to Paragraph (h): These * * * * * advertisements, unless filed with NASD Form N–3 Regulation, Inc., are required to be filed in Note to Introductory Text of § 270.34b–1: accordance with the requirements of The fact that the sales literature includes the * * * * * § 230.497. information specified in paragraphs (a) and (b) of this section does not relieve the Item 25. Calculation of Performance Data PART 239—FORMS PRESCRIBED investment company, underwriter, or dealer of the obligation to ensure that the sales UNDER THE SECURITIES ACT OF 1933 (a) Money Market Accounts. Yield literature is not false or misleading. For quotation(s) included in the prospectus guidance about factors to be weighed in 5. The authority citation for part 239 for an account or sub-account that holds continues to read in part as follows: determining whether statements, representations, illustrations, and itself out as a ‘‘money market’’ account Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s, descriptions contained in investment or sub-account should be calculated 77z–2, 77sss, 78c, 78l, 78m, 78n, 78o(d), company sales literature are misleading, see according to paragraphs (a)(i)–(ii). 78u–5, 78w(a), 78ll(d), 79e, 79f, 79g, 79j, 79l, § 230.156 of this chapter. (i) Yield Quotation. Based on the 7 79m, 79n, 79q, 79t, 80a–8, 80a–24, 80a–26, days ended on the date of the most 80a–29, 80a–30, and 80a–37, unless * * * * * recent balance sheet of the Registrant otherwise noted. included in the registration statement, * * * * * PART 239—FORMS PRESCRIBED UNDER THE SECURITIES ACT OF 1933 calculate the yield by determining the PART 270—RULES AND net change, exclusive of capital changes REGULATIONS, INVESTMENT PART 274—FORMS PRESCRIBED and income other than investment COMPANY ACT OF 1940 UNDER THE INVESTMENT COMPANY income, in the value of a hypothetical ACT OF 1940 pre-existing account having a balance of 6. The authority citation for part 270 one accumulation unit of the account or continues to read in part as follows: 8. The authority citation for Part 274 sub-account at the beginning of the Authority: 15 U.S.C. 80a–1, et seq., 80a– continues to read as follows: period, subtracting a hypothetical 34(d), 80a–37, 80a–39, unless otherwise Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s, charge reflecting deductions from noted; 78c(b), 78l, 78m, 78n, 78o(d), 80a–8, 80a–24, contractowner accounts, and dividing * * * * * 80a–26, and 80a–29, unless otherwise noted. the difference by the value of the 7. Section 270.34b–1 is amended by: Note: The text of Forms N–1A, N–3, N–4, account at the beginning of the base a. Revising the reference ‘‘(a)(7) of and N–6 does not, and these amendments period to obtain the base period return, § 230.482’’ in paragraph (a) to read will not, appear in the Code of Federal and then multiplying the base period ‘‘(b)(4) of § 230.482’’; Regulations. return by (365/7) with the resulting

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yield figure carried to at least the the Registrant included in the one accumulation unit of the account or nearest hundredth of one percent. registration statement, calculate yield by sub-account at the beginning of the (ii) Effective Yield Quotation. Based dividing the net investment income per period, subtracting a hypothetical on the 7 days ended on the date of the accumulation unit earned during the charge reflecting deductions from most recent balance sheet of the period by the maximum offering price contractowner accounts, and dividing Registrant included in the registration per unit on the last day of the period, the difference by the value of the statement, calculate the effective yield, according to the following formula: account at the beginning of the base carried to at least the nearest hundredth period to obtain the base period return, of one percent, by determining the net  − 6  and then multiplying the base period change, exclusive of capital changes and =  ab+  − return by (365/7) with the resulting YIELD 211   income other than investment income,  cd  yield figure carried to at least the in the value of a hypothetical pre- nearest hundredth of one percent. existing account having a balance of one Where: (ii) Effective Yield Quotation. Based accumulation unit of the account or sub- a = Dividends and interest earned on the 7 days ended on the date of the account at the beginning of the period, during the period. most recent balance sheet of the subtracting a hypothetical charge b = Expenses accrued for the period (net Registrant included in the registration reflecting deductions from of reimbursements). statement, calculate the effective yield, contractowner accounts, and dividing c = The average daily number of carried to at least the nearest hundredth the difference by the value of the accumulation units outstanding of one percent, by determining the net account at the beginning of the base during the period. change, exclusive of capital changes and period to obtain the base period return, d = The maximum offering price per income other than investment income, and then compounding the base period accumulation unit on the last day of in the value of a hypothetical pre- return by adding 1, raising the sum to the period. existing account having a balance of one a power equal to 365 divided by 7, and Instructions: accumulation unit of the account or sub- subtracting 1 from the result, according * * * * * account at the beginning of the period, to the following formula: (iii) Non-Standardized Performance subtracting a hypothetical charge Effective Yield = [(Base Period Return Quotation. A Registrant may calculate reflecting deductions from +1)365/7]¥1. performance using any other historical contractowner accounts, and dividing the difference by the value of the Instructions: measure of performance (not subject to any prescribed method of computation) account at the beginning of the base * * * * * period to obtain the base period return, (b) Other Accounts. Performance if the measurement reflects all elements of return. and then compounding the base period information included in the prospectus return by adding 1, raising the sum to should be calculated according to * * * * * a power equal to 365 divided by 7, and paragraphs (b)(i)–(iii). 12. Item 4 of Form N–4 (referenced in subtracting 1 from the result, according (i) Average Annual Total Return §§ 239.17b and 274.11c) is amended by: to the following formula: Quotation. For the 1-, 5-, and 10-year a. Removing Item 4(b); and Effective Yield = [(Base Period periods ended on the date of the most b. Redesignating Item 4(c) as Item Return+1)365/7]¥1. recent balance sheet of the Registrant 4(b). included in the registration statement, 13. Item 21 of Form N–4 (referenced Instructions: calculate the average annual total return in §§ 239.17b and 274.11c) is amended * * * * * by finding the average annual by: (b) Other Sub-Accounts. Performance compounded rates of return over the a. Removing Instruction 5 to information included in the prospectus 1-, 5-, and 10-year periods that would paragraph (a); and should be calculated according to equate the initial amount invested to the b. Revising paragraphs (a) and (b), and paragraphs (b)(i)–(iii). ending redeemable value, according to Instruction 6 to paragraph (b)(i), to read (i) Average Annual Total Return the following formula: as follows: Quotation. For the 1-, 5-, and 10-year periods ended on the date of the most P(1+T)n = ERV Form N–4 recent balance sheet of the Registrant Where: * * * * * included in the registration statement, P = A hypothetical initial payment of calculate the average annual total return $1,000 Item 21. Calculation of Performance by finding the average annual T = Average annual total return Data compounded rates of return over the n = Number of years (a) Money Market Funded Sub- 1-, 5-, and 10-year periods that would ERV = Ending redeemable value of a Accounts. Yield quotation(s) included equate the initial amount invested to the hypothetical $1,000 payment made in the prospectus for an account or sub- ending redeemable value, according to at the beginning of the 1-, 5-, or 10- account that holds itself out as a the following formula: year periods at the end of the 1-, ‘‘money market’’ account or sub-account P(1+T)n = ERV 5-, or 10-year periods (or fractional should be calculated according to Where: portion). paragraphs (a)(i)–(ii). P = A hypothetical initial payment of Instructions: (i) Yield Quotation. Based on the 7 $1,000 * * * * * days ended on the date of the most T = Average annual total return 6. Total return information in the recent balance sheet of the Registrant n = Number of years prospectus need only be current to the included in the registration statement, ERV = Ending redeemable value of a end of the Registrant’s most recent fiscal calculate the yield by determining the hypothetical $1,000 payment made year. net change, exclusive of capital changes at the beginning of the 1-, 5-, or 10- (ii) Yield Quotation. Based on a 30- and income other than investment year periods at the end of the 1-, day (or one month) period ended on the income, in the value of a hypothetical 5-, or 10-year periods (or fractional date of the most recent balance sheet of pre-existing account having a balance of portion).

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Instructions: company attributable to shares reference ‘‘Items 27 (c), (k), (l), (n), and * * * * * owned by the sub-account. (o)’’ to read ‘‘Items 26 (c), (k), (l), (n), 6. Total return information in the b = Expenses accrued for the period (net and (o)’’. prospectus need only be current to the of reimbursements). 15. Item 25 of Form N–6 (referenced end of the Registrant’s most recent fiscal c = The average daily number of in §§ 239.17c and 274.11d) is removed. year. accumulation units outstanding 16. Form N–6 (referenced in (ii) Yield Quotation. Based on a 30- during the period. §§ 239.17c and 274.11d) is further day (or one month) period ended on the d = The maximum offering price per amended by: accumulation unit on the last day of date of the most recent balance sheet of a. Redesignating Items 26 through 34 the period. the Registrant included in the as Items 25 though 33; registration statement, calculate yield by Instructions: b. Revising the reference ‘‘Item 26’’ in dividing the net investment income per * * * * * paragraph (j) of newly redesignated Item accumulation unit earned during the (iii) Non-Standardized Performance 25 to read ‘‘Item 25’’ and period by the maximum offering price Quotation. A Registrant may calculate c. Revising the reference ‘‘Item 26’’ in per unit on the last day of the period, performance using any other historical according to the following formula: paragraphs (l) and (m) of newly measure of performance (not subject to redesignated Item 26 to read ‘‘Item 25’’. any prescribed method of computation)  − 6  By the Commission. =  ab+  − if the measurement reflects all elements YIELD 211   of return. Dated: May 17, 2002.  cd  * * * * * Margaret H. McFarland, Where: 14. General Instruction B.2.(b) of Deputy Secretary. a = Net investment income earned Form N–6 (referenced in §§ 239.17c and [FR Doc. 02–12893 Filed 5–23–02; 8:45 am] during the period by the portfolio 274.11d) is amended by revising the BILLING CODE 8010–01–P

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Part IV

Commodity Futures Trading Commission Securities and Exchange Commission 17 CFR Parts 41 and 240 Cash Settlement and Regulatory Halt Requirements for Security Futures Products; Final Rule

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COMMODITY FUTURES TRADING Trading Commission, Three Lafayette A. Summary of Collection of Information COMMISSION Centre, 1155 21st Street, NW, B. Proposed Use of Information Washington, DC 20581. E-mail: C. Respondents 17 CFR Part 41 ([email protected]), ([email protected]), or D. Total Annual Reporting and ([email protected]). Recordkeeping Burden RIN 3038–AB86 E. Record Retention Period SEC F. Collection of Information Is Mandatory SECURITIES AND EXCHANGE G. Confidentiality Jerry Carpenter, Assistant Director, at COMMISSION IV. Costs and Benefits of the Final Rule (202) 942–4187; Terri Evans, Assistant CFTC: 17 CFR Part 240 Director, at (202) 942–4162; Alton SEC: Harvey, Office Head, at (202) 942–4167; A. Comments [Release No. 34–45956; File No. S7–15–01] Michael Gaw, Special Counsel, at (202) B. Benefits of SEC Rule 6h–1 under the RIN 3235–AI24 942–0158; Cyndi Nguyen, Attorney, at Exchange Act (202) 942–4163; and Michael Rae, C. Costs of SEC Rule 6h–1 under the Cash Settlement and Regulatory Halt Attorney, at (202) 942–0785, Division of Exchange Act Requirements for Security Futures Market Regulation, Securities and V. Consideration of the Burden on Products Exchange Commission, 450 Fifth Street, Competition, and Promotion of NW, Washington, DC 20549–1001. Efficiency, Competition, and Capital AGENCIES: Commodity Futures Trading Formation Commission and Securities and SUPPLEMENTARY INFORMATION: The CFTC SEC: Exchange Commission. is adopting Rule 41.1(j) through (l), A. Effects on Competition 41.25(a)(2), 41.25(b), and 41.25(d) under 1. Settlement Procedures for Cash-Settled ACTION: Joint final rule. the CEA.1 The SEC is adopting Rule 6h– Security Futures Products SUMMARY: The Commodity Futures 1 under the Exchange Act.2 2. Trading Halt Provisions 3. Conclusion Trading Commission (‘‘CFTC’’) and the Table of Contents Securities and Exchange Commission B. Effects on Efficiency and Capital I. Introduction Formation (‘‘SEC’’) (collectively ‘‘Commissions’’) II. Discussion 1. Settlement Procedures for Cash-Settled are adopting a new rule generally to A. Settlement Prices for Cash-Settled Security Futures Products require that the final settlement price for Security Futures Products 2. Trading Halt Provisions each cash-settled security futures 1. Background VI. Final Regulatory Flexibility Act product fairly reflect the opening price 2. Proposed Rule for Settlement Prices CFTC: of the underlying security or securities, 3. Final Rule SEC: and that trading in any security futures a. Final Settlement Price for Cash-Settled VII. Statutory Basis and Text of Rule product halt when a regulatory halt is Security Futures Products Must Fairly Appendix A instituted with respect to a security or Reflect the Opening Price i. CFTC Technical Amendment I. Introduction securities underlying the security b. Definitions of ‘‘Opening Price’’ and 3 futures product by the national ‘‘Regular Trading Session’’ The CFMA authorizes the trading of securities exchange or national c. Determining a Final Settlement Price futures on individual stocks and securities association listing the When Opening Price Not Readily narrow-based security indexes security. The rule adopted today would Available (collectively, ‘‘security futures ’’).4 The set forth more specifically how the d. New Provision to Resolve Conflict CFMA defines security futures products exchange’s or association’s rules can Between Market Rules and Clearing as ‘‘securities’’ under the Exchange satisfy provisions added to the Agency Rules Act,5 the Securities Act of 1933,6 the Commodity Exchange Act (‘‘CEA’’) and e. Exemptions Investment Company Act of 1940,7 and B. Regulatory Halts 8 the Securities Exchange Act of 1934 1. Background the Investment Advisers Act of 1940, (‘‘Exchange Act’’) by the Commodity 2. Proposed Rule for Regulatory Halts and as contracts of sale for future Futures Modernization Act of 2000 3. Final Rule delivery of a single security or of a (‘‘CFMA’’). The Commissions are also a. Trading Halt Coordination in Single- narrow-based security index or options issuing an interpretation of the statutory Stock Futures thereon under the CEA.9 Accordingly, requirement under the CEA and the b. Trading Halt Coordination in Narrow- the regulatory framework established by Exchange Act that procedures be put in Based Security Index Futures the CFMA for the markets and place for coordinated surveillance c. Definition of a Regulatory Halt intermediaries trading security futures among the markets trading security d. Exemptions C. Commissions’ Interpretation of Statutory futures products and any market trading Requirements for Coordinated 3 Pub. L. No. 106–554, Appendix E, 114 Stat. any security underlying the security Surveillance 2763. 4 futures products or any related security. 1. Markets Trading Security Futures After December 21, 2003, the Commissions may jointly determine to permit trading of puts, calls, EFFECTIVE DATE: The rules are effective 2. Exchanges Trading Securities Other straddles, options, or privileges on security futures June 24, 2002. Than Security Futures (along with security futures, collectively referred to III. Paperwork Reduction Act FOR FURTHER INFORMATION CONTACT: as ‘‘security futures products’’). See Section CFTC: 2(a)(1)(D)(iii) of the CEA, 7 U.S.C. 2(a)(1)(D)(iii); CFTC SEC: Section 6(h)(6) of the Exchange Act, 15 U.S.C. 78f(h)(6). Richard A. Shilts, Acting Director, 5 1 Rule 41.1(j)–(l), 17 CFR 41.1, hereinafter referred See Section 3(a)(10) of the Exchange Act, 15 Division of Economic Analysis, at (202) to as CFTC Rule 41.1; 41.25(a)(2), 17 CFR U.S.C. 78c(a)(10). 418–5275; Thomas M. Leahy, Jr., 41.25(a)(2), hereinafter referred to as CFTC Rule 6 See Section 2(a)(1) of the Securities Act of 1933, Financial Instruments Unit Chief, 41.25(a)(2); 41.25(b), 17 CFR 41.25(b), hereinafter 15 U.S.C. 77b(a)(1). 7 Division of Economic Analysis, at (202) referred to as CFTC Rule 41.25(b); and 41.25(d), 17 See Section 2(a)(36) of the Investment Company CFR 41.25(d), hereinafter referred to as CFTC Rule Act of 1940, 15 U.S.C. 80a–2(a)(36). 418–5278; or Gabrielle A. Sudik, 41.25(d). 8 See Section 202(a)(18) of the Investment Attorney, Office of General Counsel, at 2 Rule 6h–1, 17 CFR 240.6h–1, hereinafter Advisers Act of 1940, 15 U.S.C. 80b–2(a)(18). (202) 418–5120, Commodity Futures referred to as SEC Rule 6h–1. 9 See Section 1a(31) of the CEA, 7 U.S.C. 1a(31).

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products provides the SEC and the Accordingly, the Commissions the Commissions are adopting the rule CFTC with joint jurisdiction. proposed amendments to Rule 41.1 and substantially as proposed, with slight Under the Exchange Act, it is Rule 41.25 under the CEA, and new modifications in response to unlawful for any person to effect Rule 6h–1 under the Exchange Act to recommendations by commenters. transactions in security futures products generally provide that (i) the final II. Discussion that are not listed on a national settlement price for each cash-settled securities exchange 10 or on a national security futures product fairly reflect the A. Settlement Prices for Cash-Settled securities association registered opening price of the underlying security Security Futures Products pursuant to Section 15A(a) of the or securities, and (ii) the listing 1. Background Exchange Act.11 In addition, Section standards of national securities 6(h)(2) of the Exchange Act 12 provides exchanges and national securities All currently traded index futures and that such an exchange or association associations trading security futures options are cash-settled. When stock may trade only those security futures products establish a halt in trading in index futures and options began trading products that conform with listing any security futures product when the in the mid-1980s, virtually all of these standards filed by the exchange or national securities exchange or national products used closing-price settlement association with the SEC under Section securities association listing the security procedures. Closing-price settlement 19(b) of the Exchange Act 13 and that institutes a regulatory halt with respect procedures in index futures and options meet certain criteria specified in Section to a security or securities underlying the generally base the index settlement 2(a)(1)(D)(i) of the CEA 14 and the security futures product.18 In response price on the execution prices from the standards and conditions enumerated in to the Proposing Release, the last regular session trades in the Section 6(h)(3) of the Exchange Act.15 Commissions received eight comment underlying securities. The cash In particular, the CEA and the letters.19 As discussed further below, settlement provisions of stock index Exchange Act stipulate that the listing futures and options contracts facilitated standards of an exchange or association securities exchange or national securities the growth of sizeable index arbitrage trading security futures products shall, association lists or trades security futures products, activities by firms and professional it is required to file, pursuant to Section 19(b) of traders and made it relatively easy for among other things, require that trading the Exchange Act, 15 U.S.C. 78s(b), a proposed rule in the security futures product not be change with the SEC establishing listing standards arbitrageurs to buy or sell the readily susceptible to manipulation of that comply with Section 6(h)(3) of the Exchange underlying stocks at or near the market the price of such security futures Act, 15 U.S.C. 78f(h)(3). Generally, a national close on expiration Fridays 20 in order to securities exchange registered under Section 6(a) of ‘‘unwind’’ arbitrage-related positions. products, nor to causing or being used the Exchange Act, 15 U.S.C. 78f(a), or a national in the manipulation of the price of any securities association registered under Section These types of unwinding programs at underlying security or option thereon.16 15A(a) of the Exchange Act, 15 U.S.C. 78o–3(a), the close on expiration Fridays often In addition, listing standards must must file proposed rule changes with the SEC severely strained the liquidity of the pursuant to Section 19(b)(1) of the Exchange Act, require that the market on which the securities markets. 15 U.S.C. 78s(b)(1), for notice, comment, and SEC Regulators and self-regulators were security futures product trades has in approval, prior to implementation, unless the rule place procedures to coordinate trading is otherwise permitted to become effective pursuant concerned that the liquidity constraints to Section 19(b)(3) of the Exchange Act, 15 U.S.C. faced by the securities markets to halts between such market and any 78s(b)(3). A Security Futures Product Exchange or market on which any security accommodate expiration-related buy or a national securities association registered under sell programs at the market close on underlying the security futures product Section 15A(k) of the Exchange Act, 15 U.S.C. 78o– is traded and other markets on which 3(k), must generally submit, pursuant to Section expiration Fridays could exacerbate 19(b)(7) of the Exchange Act, 15 U.S.C. 78s(b)(7), ongoing market swings during an any related security is traded.17 proposed rule changes relating to certain expiration and could provide enumerated matters, including listing standards. 10 Section 6(g) of the Exchange Act, 15 U.S.C. See 17 CFR 240.19b–7. opportunities for entities to anticipate 78f(g), allows a designated contract market under 18 See Securities Exchange Act Release No. 44743 these pressures and enter orders as part Section 5 of the CEA, 7 U.S.C. 7, or a registered (August 24, 2001), 66 FR 45904 (August 30, 2001) of manipulative or abusive trading derivatives transaction execution facility under (‘‘Proposing Release’’). practices designed to artificially drive Section 5a of the CEA, 7 U.S.C. 7a, to register as 19 See letters to Jean A. Webb, Secretary, CFTC, up or down share prices. To reduce a national securities exchange solely for the and Jonathan G. Katz, Secretary, SEC, from, or on purpose of trading security futures products behalf of: Joanne Moffic-Silver, General Counsel, such expiration-related strains on (‘‘Security Futures Product Exchange’’). See Chicago Board Options Exchange, dated October 1, market liquidity, markets trading the Securities Exchange Act Release No. 44692 (August 2001 (‘‘CBOE Letter’’); David J. Vitale, President and most actively-traded futures contracts 13, 2001), 66 FR 43721 (August 20, 2001) (adopting, Chief Executive Officer, Chicago Board of Trade, and many stock index option contracts in part, requirements for designated contract dated October 1, 2001 (‘‘CBOT Letter’’); James J. markets and registered derivatives transaction McNulty, President and Chief Executive Officer, moved to opening-price settlement execution facilities to register as national securities Chicago Mercantile Exchange, Inc., dated October 1, procedures. As discussed in the exchanges). By definition, the phrase ‘‘national 2001 (‘‘CME Letter’’); Jonathon Barton, Chairman, Proposing Release, opening-price securities exchange’’ encompasses Security Futures Futures Industry Association/Securities Industry settlement procedures offered several Product Exchanges. For simplicity, the text of this Association Steering Committee on Security release refers to national securities exchanges and Futures, dated April 4, 2002 (‘‘FIA/SIA Steering features that enabled the securities national securities associations. The CFTC’s rules in Committee Letter’’); James E. Buck, Senior Vice Section VII of this release, however, by their terms, President and Secretary, New York Stock Exchange, separate proposal regarding full membership in the apply to designated contract markets and registered Inc., dated October 19, 2001 (‘‘NYSE Letter’’); Intermarket Surveillance Group. See infra derivatives transaction execution facilities. William H. Navin, Executive Vice President and discussion at Section II.C., Commissions’ 11 15 U.S.C. 78o–3(a). General Counsel, the Options Clearing Corporation, Interpretation of Statutory Requirements for 12 15 U.S.C. 78f(h)(2). dated October 3, 2001 (‘‘OCC Letter’’); Joel Coordinated Surveillance. 20 13 15 U.S.C. 78s(b). Greenberg, Managing Director, Susquehanna The term ‘‘expiration Fridays’’ refers to the International Group, LLP, dated October 17, 2001 third Friday of each month that marks the 14 7 U.S.C. 2(a)(1)(D)(i). (‘‘SIG Letter’’); and Larry Coury, Silvia Madrid, expiration date for that month’s individual stock 15 15 U.S.C. 78f(h)(3). Laura Murias, Mike Periera, Vivek Sahota, options, stock index options, and stock index 16 See Section 2(a)(1)(D)(i)(VII) of the CEA, 7 Benjamin Sparks, Adrian Spirollari, and Wallace futures contracts. On the expiration date, options U.S.C. 2(a)(1)(D)(i)(VII); Section 6(h)(3)(H) of the Truesdale, Students at Fordham University School and futures contracts cease to exist. Some stock Exchange Act, 15 U.S.C. 78f(h)(3)(H). of Law, dated October 1, 2001 (‘‘Students Letter’’). index futures and options expire on a quarterly 17 See Section 2(a)(1)(D)(i)(X) of the CEA, 7 U.S.C. In addition to the comment letters received on the basis, with their expiration Friday occurring on the 2(a)(1)(D)(i)(X); Section 6(h)(3)(K) of the Exchange Proposing Release, the Commissions reviewed three third Friday of the last month of the quarter (March, Act, 15 U.S.C. 78f(h)(3)(K). Before a national comment letters received by the CFTC on its June, September, and December).

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markets to better handle expiration- practices.’’ 25 This commenter believed subject to no such requirement.28 related unwinding programs. that, with the increased use of opening- Another commenter noted that the price settlement, specialists are better option on the S&P 100 index (the 2. Proposed Rule for Settlement Prices able to handle expiration-related ‘‘OEX’’ option) still employs closing- In view of the experience gained with unwinding programs because there are price settlement and called upon the settlements in cash-settled stock index well-developed opening procedures to Commissions to bring OEX into line futures and options in the 1980s and in disseminate price indications in an with the opening-price settlement light of the potential for manipulation of orderly manner and because specialists procedures now being adopted.29 the underlying securities markets, the have the remainder of the session to The Commissions do not believe it is Commissions proposed that security trade out of any position imbalances necessary or appropriate at this time to futures products that specify cash acquired at the opening. mandate opening settlement procedures settlement in lieu of physical delivery A third commenter noted that the for all options and futures. As the use a final settlement price that fairly migration in 1987 from closing price to Commissions noted in the Proposing reflected the opening price of the opening price settlement on its S&P 500 Release, CBOE believed that the closing underlying security or securities as the and other futures contracts ‘‘was largely price settlement procedures were basis for cash settling positions at in response to the fact that Friday appropriate for OEX because these contract expiration.21 afternoon settlements—which options were used primarily by retail The Commissions’ proposal also investors and were not actively used in required that, if an opening price for an corresponded to existing practices for listed options expirations—exposed the types of index arbitrage unwinding underlying security or securities was programs that had strained the liquidity not readily available, the final NYSE specialists to large information- less market-on-close orders without an of the securities markets at the close on settlement price of the overlying cash- 30 adequate mechanism to cope.’’26 expiration. Further, the Commissions settled security futures product had to note that the vast majority of options do fairly reflect the price of the underlying Nevertheless, this commenter pointed out potential problems with the use opening-price settlement security or securities during its most procedures; 31 therefore, the rule being proposed approach. It stated, for recent regular trading session. The adopted today is consistent with that example, that the openings of all Commissions’ proposal provided general practice.32 exchanges and associations with some securities do not occur simultaneously One commenter also did not believe discretion to implement this general and, therefore, calculation of an index that the decision to employ opening- rule. Finally, the proposal explicitly must be based on non-synchronous rather than closing-price procedures permitted the Commissions to grant a transaction prices. This commenter also should be based on a perceived threat of national securities exchange or national noted that a volume-weighted average increased manipulative activity, arguing securities association an exemption transaction price over a short time that improvements in audit trails, from the above requirements. interval has evolved into an industry record-keeping practices, and inter- standard for determining final 3. Final Rule exchange cooperation have greatly settlement prices for futures based on increased the ability to detect and a. Final Settlement Price for Cash- securities trading on decentralized punish manipulative activity.33 The Settled Security Futures Products Must markets, such as Nasdaq. In response to Commissions agree that these Fairly Reflect the Opening Price the foregoing, the Commissions note enhancements have increased the ability The Commissions are adopting the that the rule being adopted today does of regulators to detect and punish requirement as proposed that the final not mandate that a particular manipulative trading activity. settlement price of a cash-settled methodology be used to derive an Nevertheless, the Commissions believe security futures product fairly reflect the opening price. A national securities that it is appropriate to take steps that opening price of the underlying security exchange or national securities reduce not merely the incentive, but or securities, if the opening price is association is, therefore, free to develop also the ability to manipulate the readily available.22 its own methodology for determining market. For example, one commenter Several commenters generally final settlement prices, provided that described its implementation of special supported this aspect of the proposal.23 the result ‘‘fairly reflects’’ the opening closing procedures to reduce the scope One commenter stated that cash-settled price.27 for end-of-day manipulation, while security futures products should be The same commenter also stated that stating that the use of opening prices settled based on opening prices of the the Commissions’ proposal could create would obviate the need for these special underlying securities because cash- a discrepancy between security futures closing procedures.34 This commenter settled index options already are products based on narrow-based also noted that opening-price settlement required to settle in the same manner.24 security indexes and other derivative decreases the likelihood of price A second commenter advocated opening products based on the same indexes: distortions not brought about by price settlement because closing-price while the former would be required to manipulative intent, such as human settlement procedures for futures and settle using opening prices, the latter are options products in the 1980s ‘‘strained 28 See CME Letter. 29 the liquidity of the securities markets 25 See NYSE Letter. See NYSE Letter. 30 and raised concerns about opportunities 26 See CME Letter. For example, the OCC indicated that for the month of November 2001, the dollar amount of 27 Any rule change proposed by a national for manipulative or abusive trading premiums settled in SPX options was over 12 times securities exchange or national securities larger than that for OEX options. Both indexes are association to establish listing standards for security 21 capitalization-based indexes from Standard & See Proposing Release, supra note 18. futures products, including methodologies for 22 Poor’s. CFTC Rule 41.25(b)(1) and SEC Rule 6h– determining final settlement prices, would have to 31 1(b)(1). The CFTC is adopting one technical change be filed with the SEC pursuant to Section 19 of the See Proposing Release, supra note . to CFTC Rule 41.25(b). See discussion infra at Exchange Act, 15 U.S.C. 78s, and the rules 32 If the circumstances so warrant, the SEC may II.A.3.a.i., CFTC Technical Amendment. thereunder. See supra note 10 and accompanying in the future consider requiring all cash-settled 23 See CBOE Letter, CBOT Letter, and NYSE text. Rule changes should also be submitted to the options to use opening-price settlement procedures. Letter. CFTC in accordance with CFTC Rule 41.24, 17 CFR 33 See CME Letter. 24 See CBOE Letter. 41.24. 34 See NYSE Letter.

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error, that can significantly affect the acceptable for hedging of securities’ meaningful or practical solution for closing prices of securities and their positions. In addition, opening prices optimal contract design.42 overlying indexes, because the markets are established under procedures The Commissions acknowledge that have no time before the closing to designed to ensure that the prices are the proposed definition of ‘‘opening correct such errors. The Commissions reflective of prices in the underlying price’’ failed to contemplate that the believe that market distortions— securities market. Finally, the market trading a security that underlies whether caused by manipulation, requirement that the cash settlement a security futures product could be a human error, or difficulties in balancing price not be readily susceptible to market other than a national securities buy- and sell-side interest—are more manipulation is embodied in CFTC Rule exchange or national securities likely to occur in an environment in 41.22(f), which states, ‘‘Trading in the association, such as a foreign stock which closing-price settlement of security futures products is not readily exchange. Therefore, the Commissions derivative products is used, and that the susceptible to manipulation of the price have revised the definition to provide potential for these distortions exists to of such security futures product, nor to 35 that, if the underlying security is not a far lesser degree at the opening. causing or being used in the listed on a national securities exchange manipulation of the price of any i. CFTC Technical Amendment or a national securities association, the underlying security, option on such opening price is the price at which the The CFTC notes one technical change security, or option on a group or index security opened for trading, or a price to the text of CFTC Rule 41.25(b). In an including such securities, consistent that fairly reflects the price at which a earlier rulemaking, the CFTC adopted with the conditions for trading of security opened for trading, on the an introductory paragraph that required § 41.25[.]’’ 39 that the cash settlement price of security primary market for the security. To the futures products must be ‘‘reliable and b. Definitions of ‘‘Opening Price’’ and extent that the underlying security is acceptable, be reflective of prices in the ‘‘Regular Trading Session’’ listed on a national securities exchange underlying securities market and be not The Commissions are adopting the or national securities association, readily susceptible to manipulation.’’ 36 definition of ‘‘regular trading session’’ however, as explained further below, The CFTC included this language in the as proposed.40 However, in response to the Commissions continue to believe earlier rulemaking to reflect the CFTC’s comments, the Commissions have that it is appropriate to use the opening 43 longstanding policy regarding the modified the definition of ‘‘opening price from the listing market. standards for cash-settlement of futures price’’ by clarifying that, if a security is One commenter stated that it may contracts, which are set forth in the not listed on a national securities soon become the case that the listing CFTC’s Guideline No. 1.37 The CFTC exchange or a national securities market is not the primary trading venue also included this language in the association, the opening price shall be for a security and, thus, not the most Proposing Release for the present the price at which a security opened for liquid market.44 The Commissions agree rulemaking.38 In the final rules trading, or a price that fairly reflects the that this possibility exists, but published today, the CFTC has decided price at which a security opened for nevertheless believe that national to eliminate this introductory paragraph trading, on the primary market for the securities exchanges and national because the requirements of the security. securities associations are, at the present paragraph are embodied in the The Commissions proposed to define time, a significant source of liquidity for remainder of the Rule 41.25(b) and in ‘‘opening price’’ as ‘‘the price at which those securities that are permitted to other rules in Part 41. a security opened for trading, or a price underlie security futures products and, The requirements that the cash that fairly reflects the price at which a therefore, that opening prices derived settlement price must be reliable, security opened for trading, during the from these listing markets are acceptable and reflect the prices in the regular trading session of the national appropriate to use as final settlement underlying securities markets are securities exchange or national prices. Moreover, the Commissions embodied in CFTC Rules 41.25(b)(1) securities association that lists the believe, at this time, that a rule and (2). These rules require that cash security.’’ 41 One commenter, however, requiring, for example, the calculation settlement prices be based on the observed that security futures products of trading volumes to determine the opening price of a security futures may be based on securities the primary appropriate primary market from which product’s underlying security or markets of which are foreign, and that to derive an opening price for a security securities, or, if the opening price for using the opening price from a U.S. listed in the U.S. would impose one or more securities is not readily market—if there is one—might not be a unnecessary burdens without furthering available, the final settlement price of the anti-manipulation goals enshrined the security futures products must fairly 39 See 17 CFR 41.22(f); 66 FR at 55084. See also in Section 2(a)(1)(D)(i)(VII) of the CEA 45 reflect the price of the underlying Core Principle for Contract Markets 3 of the CEA security or securities during the most requiring designated contract markets to list contracts that are not readily susceptible to 42 See CME Letter. recent regular trading session for such manipulation; Core Principle for Contract Markets 43 If a security futures product were based on an securities or the next available opening 4 of the CEA requiring designated contract markets American Depository Receipt (‘‘ADR’’) traded on a price. Based on prior analyses and for to monitor trading to prevent manipulation, price national securities exchange or national securities reasons discussed in the proposing distortion, and disruptions of the delivery or cash- association, the opening price for the ADR would settlement process; and Core Principle for DTEFs 3 necessarily, under the rule adopted today, be release, the CFTC previously has of the CEA requiring DTEFs to monitor trading to derived from the national securities exchange or determined that opening prices ensure orderly trading. Sections 5(d)(3), 5(d)(4) and national securities association that trades it. represent reliable indicators of the 5a(d)(3) of the CEA; 7 U.S.C. 7(d)(3), 7(d)(4) and However, if a security futures product were based values of securities and thus are 7a(d)(3). on the foreign security itself, the market listing the 40 A ‘‘regular trading session’’ of a security means security futures product must exercise its discretion the normal hours for business of a national to identify the primary market of the foreign 35 See supra discussion at Section II.A.1., securities exchange or national securities security for purposes of deriving its opening price. Background. association that lists the security. See CFTC Rule See Securities Exchange Act Release No. 44725 36 See 66 FR 55078 (November 1, 2001). 41.1(k) and SEC Rule 6h–1(a)(2). (August 20, 2001). 37 See 17 CFR Part 40, Appendix A(a)(2)(iii). 41 See proposed CFTC Rule 41.1(j) and proposed 44 See CME Letter. 38 See 66 FR at 45918. SEC Rule 6h–1(a)(1). 45 7 U.S.C. 2(a)(1)(D)(i)(VII).

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and Section 6(h)(3)(H) of the Exchange pricing conventions should be resolved rules of their registered clearing agency Act.46 by a collaboration among the exchanges or derivatives clearing organization.56 that design the product and the The Commissions will not, however, c. Determining a Final Settlement Price clearinghouse, with appropriate prohibit a national securities exchange When Opening Price Not Readily consultation with their members and or national securities association from Available participants.51 employing look-back pricing if it The Commissions proposed that, if In addition, several commenters believed that such course were the opening price of an underlying contended that under the Commissions’ appropriate. One commenter stated that security were not readily available, the proposed rule hedges could be situations may arise in which a very final settlement price of a cash-settled significantly disrupted.52 One small percentage of the securities of an security futures product overlying that commenter specifically noted that index fail to trade on an expiration security must reflect a price of the market participants holding hedged or Friday.57 In such situations, the underlying security taken from its most arbitraged positions expect to unwind commenter believed, it would be recent regular trading session. The the positions simultaneously at stock reasonable to allow the overlying proposed rule provided, however, that prices that have equal value in relation derivative on the index to settle by national securities exchanges and to derivative settlement prices.53 using look-back prices for those few national securities associations could According to the commenter, this equal underlying securities that did not open, request exemptions from the value is achieved when the prices used rather than waiting to obtain the next Commissions on a case-by-case basis. to calculate the index settlement are the opening price for those few securities Although one commenter supported before settlement. The commenter 47 same prices that the market participant this aspect of the proposal, four receives when unwinding the stock side recommended that there be flexibility to commenters generally opposed the of the position; when one or more employ look-back pricing if two percent Commissions’ exclusive use of a ‘‘look component stocks cannot be unwound or less of the weighting of an index did back’’ settlement procedure for security at that price, the settlements become not open for trading on an expiration futures products when the opening disjointed and financial exposure Friday. While the Commissions do not prices for the underlying securities are occurs. Two commenters described how believe it is appropriate to set a de unavailable and, instead, recommended such a scenario would have unfolded minimis standard for use of look-back using the next day’s opening prices.48 had September 14, 2001, been an pricing, the Commissions agree with the These commenters noted that the expiration Friday: A security futures commenter’s general point that existing cash settlement procedures for product—under the Commissions’’ situations may arise where the ability to stock index options and stock index proposal—would have settled based on use look-back pricing will facilitate the futures allow ‘‘next opening’’ prices.49 the prices of underlying securities fair settlement of an overlying security Further, one commenter, a clearing traded on September 10, although prices futures product. The Commissions agency, urged the Commissions not to at the next opening on September 17 further note that the final rule being require national securities exchanges were generally significantly lower.54 adopted today is consistent with OCC and national securities associations to In response to the comment letters, rules that allow for look-back pricing in adopt rules addressing the certain circumstances.58 determination of security futures final the final rule adopted by the settlement prices when opening prices Commissions allows for either look-back d. New Provision To Resolve Conflict are not readily available, because of or next opening prices to be used as Between Market Rules and Clearing potential conflicts with clearing agency alternate final settlement prices when Agency Rules an opening price is not readily rules.50 Another commenter believed The rule adopted by the Commissions available.55 The Commissions agree that the establishment of consistent and today allows a national securities with the commenters that the original commercially appropriate alternative exchange or national securities proposal could result in an unwanted association to choose between look-back 46 15 U.S.C. 78f(h)(3)(H). and unwarranted de-linking of hedging and next opening pricing procedures for 47 See CBOT Letter. positions if they mandated look-back security futures products; however, it 48 See CBOE Letter, CME Letter, and SIG Letter. pricing procedures for security futures also provides the registered clearing See also OCC Letter (urging the Commissions to products. The Commissions also agree agency or derivatives clearing withdraw this aspect of the proposal, or at a that it would be inadvisable for the minimum, modify it to allow the final settlement organization that is used to clear such value to be based on the next opening). Commissions’ rule to result in proposed products with the authority to 49 See CBOE Letter, CME Letter, and SIG Letter. rule changes by national securities determine the final settlement prices in Two of these commenters—the CBOE and the associations and national securities certain circumstances.59 The CME—stated that, until May 2000, the futures and exchanges that could conflict with the Commissions believe that the rule options markets derived alternate settlement prices from a previous trading session, but changed their adopted today is consistent with the 51 procedures after Hurricane Floyd threatened to See FIA/SIA Steering Committee Letter. current conditions under which OCC close the NYSE on the expiration Friday of 52 See CBOE Letter, CME Letter, FIA/SIA Steering provides clearing services to national Committee Letter, OCC Letter, and SIG Letter. September 17, 1999. See, e.g., Securities Exchange securities exchanges and national Act Release No. 42857 (May 30, 2000), 65 FR 36185 53 See SIG Letter. (June 7, 2000) (approving SR–CBOE–00–02, which 54 See OCC Letter and SIG Letter. 56 replaced look-back pricing with next opening 55 CFTC Rule 41.25(b)(2) and SEC Rule 6h– For a further discussion on this issue, see pricing procedures on CBOE in certain situations). 1(b)(2). The Commissions’ rules do not specify the discussion infra at II.A.3.d., New Provision to See also FIA/SIA Steering Committee Letter (stating circumstances in which an opening price would not Resolve Conflict Between Market Rules and that the Commissions’ proposed requirement is be ‘‘readily available.’’ National securities Clearing Agency Rules. inconsistent with existing market practice and rules exchanges and national securities associations, 57 See SIG Letter. governing a broad range of listed stock index however, would have to establish, as part of their 58 See OCC By Laws, Article XII, Section 5 products) and OCC By-Laws, Article XII, Section 5 listing standards, specific rules that apply this term. (allowing OCC to fix the final settlement price for (allowing OCC to fix the final settlement price for In addition, national securities exchanges and security futures products using next opening prices security futures products using next opening prices national securities associations would have to file of the underlying securities, as well as look-back of the underlying securities, as well as look-back proposed rule changes to delineate which method pricing). pricing). would be used in determining final settlement 59 See CFTC Rule 41.25(b)(3) and SEC Rule 6h– 50 See OCC Letter. prices and when it would be applied. 1(b)(3).

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securities associations. Any national rules in place to address all situations the protection of customers.64 Similarly, securities exchange or national for determining the settlement price of the rule explicitly provides that the SEC securities association wishing to use a cash-settled security futures product, may grant an exemption with respect to OCC clearing services for security the national securities exchange or any provision of SEC Rule 6h–1, futures must enter into a clearing national securities association that provided that the exemption is agreement with OCC in which both trades such product should have rules necessary or appropriate in the public parties agree that security futures will in place. However, the Commissions interest and consistent with the be cleared by OCC in accordance with believe that it is appropriate to protection of investors.65 The OCC’s by-laws and rules, which expressly provide that, in the event of Commissions are expanding the scope currently give OCC the final authority to a conflict between the rules of a of the exemption to make it more determine final settlement prices in registered clearing agency or derivatives consistent with the SEC’s exemptive certain circumstances.60 The clearing organization and a market that authority under Section 36 of the Commissions believe that the rule trades a security futures product, the Exchange Act, which allows the SEC, by adopted today takes into account such clearing agency or derivatives clearing rule, regulation, or order to arrangements, as well as allows for organization may establish a new final conditionally or unconditionally similar arrangements between other settlement price for a security futures exempt any person, security, or clearing agencies or derivatives clearing product if it determines, pursuant to its transaction, or any classes thereof, from organizations and national securities rules, that the final settlement price any rule or regulation under the exchanges or national securities determined by the exchange or Exchange Act, to the extent that such associations. The Commissions also association is not consistent with the exemption is necessary or appropriate believe that the rule adopted today protection of investors or customers, as in the public interest, and is consistent addresses concerns raised by applicable, and the public interest, with the protection of investors.66 commenters. taking into account such factors as Because exchanges and associations are Under proposed CFTC Rule 41.25 and fairness to buyers and sellers of the subject to the requirements of both SEC Rule 6h–1, a clearing agency or affected security futures product, the CFTC Rule 41.25(a)(2) and (b) and SEC derivatives clearing organization would maintenance of a fair and orderly Rule 6h–1, to be exempt from such not have been entitled to determine a market in such security futures product, requirements an exchange or association final settlement price. One clearing and consistency of interpretation and would have to obtain an exemption agency commenter pointed out that its practice. In the absence of such a from both the CFTC and the SEC. rules relating to security futures provision, confusion could arise if B. Regulatory Halts products specifically provide that, in securities underlying a security futures the case of a conflict between OCC’s product failed to trade on an expiration 1. Background rules and the rules of a national Friday and the market trading the Generally, there are two types of securities exchange or national security futures product and its clearing regulatory halts used in the equity and securities association, OCC rules 61 agency or derivatives clearing options markets: News pending halts control. OCC expressed the view that organization had different rules for and circuit breaker halts. News pending ‘‘the Commissions’ rules should not determining a final settlement price. halts are designed to protect the force the exchanges to adopt rules in Moreover, this provision will make interests of current and potential this area at all, but rather should permit security futures products that trade on shareholders by facilitating the orderly that function to be left to the rules of the different markets more fungible, because dissemination of potentially market clearing organization.’’ 62 OCC further a single clearing agency or derivatives moving information and the discovery stated that, ‘‘[w]hether or not the clearing organization will be able in of fair and reasonable prices for exchanges have rules on this subject, it certain circumstances to harmonize securities based on new information.67 should remain clear that the rules of the procedures across different markets for A news pending halt benefits current clearing organization will control in the determining alternate settlement prices. event of any inconsistency, thus 64 See CFTC Rule 41.25(d). In the Proposing assuring uniformity of treatment of e. Exemptions Release, the CFTC referred to ‘‘investors’’ when fungible products that might be traded discussing the exemptive provision. The final rule on more than one exchange.’’ Another In the final rule adopted by the will more closely adhere to the CEA, and refer Commissions, the Commissions’ ability instead to ‘‘customers.’’ commenter endorsed the view that the 65 to grant exemptions to the rule’s See SEC Rule 6h–1(d). clearing agency’s rules should control in 66 See Section 36 of the Exchange Act, 15 U.S.C. the event of a conflict.63 requirements has been expanded 78mm. See also Section 8a(5) of the CEA allows the The Commissions disagree with the slightly from that proposed. The CFTC to make and promulgate such rules and view that markets trading security proposal explicitly provided that any regulations as, in the judgment of the CFTC, are national securities exchange or national reasonably necessary to effectuate any of the futures products should not address provisions or to accomplish any of the purposes of settlement procedures. To the extent securities association may receive an the CEA. 7 U.S.C. 12a(5). The CFTC believes that that a clearing agency or derivatives exemption from the requirements that granting an exemption to the use of opening prices clearing organization does not have final settlement prices of security for cash settlement would be consistent with Section 8a(5) of the CEA, so long as the exemption futures products reflect the opening is consistent with the public interest, the protection 60 See Securities Exchange Act Release No. 44727 prices of the underlying securities or, if of customers, and otherwise furthers the provisions (August 20, 2001), 66 FR 45351 (August 28, 2001). opening prices are not available, look- of the CEA. 61 See OCC Letter and OCC By-Laws, Article XII, back pricing procedures. The final rule 67 See, e.g., the American Stock Exchange LLC Section 6. explicitly provides that the CFTC may (‘‘Amex’’), Listing Standards, Policies and 62 See also FIA/SIA Steering Committee Letter Requirements, Section 402(b); Boston Stock (urging the Commissions not to require exchanges grant an exemption with respect to any Exchange (‘‘BSE’’) Rules of the Board of Governors, and associations to adopt rules addressing the provision of paragraphs (a)(2) and (b) of Supplement to Chapter XXVII, Section 4; National determination of fallback security futures final CFTC Rule 41.25, provided that the Association of Securities Dealers (‘‘NASD’’) Rule settlement prices when opening prices are not CFTC finds that the exemption is 4120; and the New York Stock Exchange, Inc. readily available). (‘‘NYSE’’) Listed Company Manual, Sections 202.06 63 See CBOE Letter. consistent with the public interest and and 202.07.

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and potential shareholders by halting all rules applying circuit breakers.72 2. Proposed Rule for Regulatory Halts trading in the securities until there has Finally, the index futures exchanges As discussed above, Section been an opportunity for the information have adopted circuit breaker halt 2(a)(1)(D)(i)(X) of the CEA 77 and Section to be disseminated to the public. It also procedures in conjunction with their 78 73 74 6(h)(3)(K) of the Exchange Act helps to promote public confidence in price limit rules for index products. provide that listing standards for the market and the integrity of the The options markets also have in place security futures products must include marketplace by giving the public an rules regarding trading halts on index procedures to coordinate trading halts opportunity to evaluate information in options.75 Several of the options between the market that trades the making investment decisions. markets will halt trading when, for security futures product, any market Circuit breakers are brief, coordinated example, a certain fixed percentage of that trades any underlying security, and cross-market trading halts used by the the index halts trading or when it is other markets on which any related stock, options, and index futures appropriate in the interests of a fair and security is traded. To assure such markets to mitigate systemic stress orderly market and to protect coordination of trading halts, the when a severe one-day market drop of investors.76 historic proportions prevents the Commissions proposed CFTC Rule 41.25(a)(2) and SEC Rule 6h–1. More financial markets from operating in an recognizes the risks imposed on any single market orderly manner.68 The Commissions that remains open while all other U.S. markets have specifically, the Commissions proposed approved various exchanges’ circuit halted trading in response to extraordinary price that trading in a future on a single movements, and maintains a market closing policy security be halted at all times that such breaker proposals in response to the to halt, upon SEC request, all domestic trading in October 1987 market break to permit both securities listed on the Nasdaq Stock Market a news pending regulatory halt or a these brief, coordinated cross-market and all equity and equity-related securities trading circuit breaker regulatory halt has been halts to provide opportunities during a in the over-the-counter market should other major instituted by the listing market for the securities markets initiate market-wide trading halts underlying security. The Commissions severe market decline to reestablish an in response to extraordinary market conditions. See equilibrium between buying and selling NASD Rule 4120; NASD IM–4120–4. The SEC notes also proposed that trading be halted in interests in an orderly fashion, and to that it has a standing request with the NASD to halt a future on a narrow-based security help to provide market participants with trading as quickly as practicable whenever the index when a news pending or circuit NYSE and other equity markets have suspended breaker regulatory halt was instituted a reasonable opportunity to become trading. See Securities Exchange Act Release No. aware of, and respond to, significant 39582 (January 26, 1998), 63 FR 5408 (February 2, for one or more underlying securities price movements.69 The coordinated 1998). that constitute 30 percent or more of the cross-market trading halts provided by 72 See Amex Rule 950 (applying Amex Rule 117, market capitalization of the narrow- Trading Halts Due to Extraordinary Market based security index.79 circuit breaker procedures are designed Volatility, to options transactions); CBOE Rule 6.3B; to operate only during significant the International Securities Exchange, LLC (‘‘ISE’’) 3. Final Rule market declines and to substitute Rule 703; PCX Rule 4.22 (which applies to options orderly, pre-planned halts for the ad hoc contracts through Rules 6.1(a) and (e)); and Phlx a. Trading Halt Coordination in Single- Rule 133. Stock Futures and destabilizing halts which can occur 73 70 A price limit, in itself, does not halt trading in when market liquidity is exhausted. the futures, but prohibits trading at prices below the The Commissions are adopting, as Currently, all stock exchanges and the pre-set limit during a price decline. Intraday price proposed, a requirement that the rules NASD have rules or policies to limits are removed at pre-set times during the of a national securities exchange or implement coordinated circuit breaker trading session, such as ten minutes after the national securities association that lists 71 thresholds are reached or at 3:30 p.m., whichever halts. The options markets also have is earlier. Daily price limits remain in effect for the or trades security futures products entire trading session. Specific price limits are set provide that trading of a future on a 68 See Circuit Breaker Report by the Staff of the for each stock index futures contract. There are no single security be halted at all times that President’s Working Group on Financial Markets price limits for U.S. stock index options, equity dated August 18, 1998 (‘‘Circuit Breaker Report’’). options, or stocks. a regulatory halt has been instituted for 69 See Securities Exchange Act Release No. 26198 74 See, e.g., CME Rule 4002.I. The CME will the underlying security. (October 19, 1988), 53 FR 41637 (October 24, 1988) implement a circuit breaker trading halt in SPX Two commenters agreed that trading (order approving circuit breaker rules for the Amex, Futures if the 10 percent circuit breaker halt has in a future on a single security should CBOE, NASD, NYSE). The CFTC approved circuit been imposed in the securities markets and the be halted when trading in the breaker price limit and trading halt rule changes futures are ‘‘locked’’ at their 10 percent price limit. after the publication in the Federal Register of the Trading will not reopen in SPX Futures until the underlying security is subject to a proposed rule changes and request for public circuit breaker halt has been lifted in the securities regulatory halt.80 Another commenter, comment, 53 FR 35539 (September 14, 1988) markets and trading has resumed in stocks while generally supporting the proposed (CBOT, CME, Kansas City Board of Trade, New comprising at least 50 percent of the index trading halt requirements for single- York Futures Exchange). capitalization. The CME will implement another 70 See Circuit Breaker Report, supra note 68. circuit breaker trading halt in SPX Futures if the 20 stock futures, believed that it may be 71 See Securities Exchange Act Release No. 39846 percent circuit breaker halt has been imposed in the appropriate to trade a single stock (April 9, 1998), 63 FR 18477 (April 15, 1998) (order securities markets and the futures are locked at futures product when the listing market approving proposals by Amex, BSE, Chicago Stock their 20 percent price limit. Once again, trading will has imposed a trading halt, if the listing Exchange (‘‘CHX’’), NASD, NYSE, and the not reopen in SPX Futures until the circuit breaker Philadelphia Stock Exchange, Inc. (‘‘Phlx’’)). See halt has been lifted in the securities markets and officials and the concurrence of a market regulation also Amex Rule 117; BSE, Rules of the Board of trading has resumed in stocks comprising at least officer. See Phlx Rule 1047A(c). Governors, Section 34A; CHX Rule 10A; Cincinnati 50 percent of the index capitalization. 77 Stock Exchange (‘‘CSE’’) Rule 12.11; NYSE Rule 75 See Amex Rule 918C(b)(3); CBOE Rule 24.7; 7 U.S.C. 2(a)(1)(D)(i)(X). 80B; the Pacific Exchange, Inc. (‘‘PCX’’) Rule 4.22 PCX Rule 7.11; and Phlx Rule 1047A(c). 78 15 U.S.C. 78f(h)(3)(K). (a), (b), and (c); and Phlx Rule 133. CSE Rule 12.11 76 For example, trading on the PCX in any index 79 It should be noted that the Commissions have gives the chairman or the president of the CSE the option is halted whenever trading in underlying jointly adopted rules to establish the method of power to suspend trading whenever he or she securities whose weighted value represents more determining the market capitalization of a narrow- believes that such suspension would be in the than 20 percent of the value of a broad-based index based security index for the limited purpose of public interest, which has been interpreted as or 10 percent of the value of other indices is halted. determining whether a security is one of the 750 requiring the CSE, as a matter of policy, to halt See PCX Rule 7.11. Similarly, under Phlx Rule securities with the largest market capitalization trading in all equities traded on the CSE in 1047A(c), trading in any index option may be under one of the exclusions from the definition of conjunction with halted trading at all other U.S. halted whenever trading on the primary market in narrow-based security index. See Securities equity and equity-related markets. See Securities underlying securities representing more than 10 Exchange Act Release No. 44724 (August 20, 2001), Exchange Act Release No. 26440 (January 10, 1989), percent of the current index value is halted or 66 FR 44490 (August 23, 2001). 54 FR 1830 (January 17, 1989). The NASD also suspended, and there is approval from two floor 80 See CBOT Letter and NYSE Letter.

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market is not the principal trading disseminated to the public. The determines that such exemption is venue for the underlying security Commissions do not believe that it necessary or appropriate in the public because the prices on that market may would be consistent with the protection interest and consistent with the not be reflective of current market of investors to permit investors, protection of investors. conditions.81 including retail investors, to trade a By adopting this rule, the In addition, one commenter believed surrogate for a security—i.e., a future on Commissions aim to maintain and that the requirement to halt trading in the security—without the benefit of preserve the integrity of this mechanism single-stock futures when trading in the material information about such so that the trading of security futures underlying security is halted was overly security or the benefit of such other products will not be used as a tool to broad to satisfy the requirement that information that was the basis for the circumvent the institution of regulatory procedures be put in place to coordinate regulatory halt. halts. Moreover, the Commissions trading halts.82 This commenter Finally, with respect to news pending believe that the purpose of halting believed that this was overly broad and halts, two commenters questioned the trading in the underlying security burdensome in its application to retail absolute requirement that trading in a would be frustrated if market investors for whom single-stock futures security futures product must be halted participants could circumvent this halt might serve as the only available means during a news pending halt in the by trading during the halt in the related for managing risk. This commenter underlying security.85 These security futures product.87 recommended allowing trading halt commenters recommended providing exchanges with discretion to impose a b. Trading Halt Coordination in Narrow- sessions during which investors with Based Security Index Futures risk exposure to an underlying equity, trading halt when there is a news which has been halted, might have the pending trading halt in the underlying The Commissions proposed that opportunity to enter into single stock security. Specifically, one commenter national securities exchanges and futures transactions with dealers. believed that this discretion is national securities associations halt The Commissions understand the important because there may be trading in a future on a narrow-based concern raised by one commenter circumstances when it is necessary to security index when component regarding continued trading of a allow trading in a security futures securities representing 30 percent or security futures product when the product when the underlying stock is more of the market capitalization of underlying security has halted trading if halted, such as when there is a need to such index are subject to a regulatory the listing market is not the primary adjust positions before an expiration.86 halt. In response to comments, the final market. However, the Commissions Given the rarity of an occurrence rules modify the proposal by increasing believe that designating the listing when a national securities exchange or to 50 percent the market capitalization market as the venue for the purpose of national securities association would represented by the component security applying the rule provides for ease of feel compelled to continue trading a or securities in a narrow-based security use and application, because it does not security futures product while the index that must be halted before a require national securities exchanges or trading of underlying stock is halted, the national securities exchange or national national securities associations to Commissions do not agree that there securities association must halt trading determine the primary market for each ought to be discretion in imposing in a future on such index. underlying security. Further, due to the regulatory halts for security futures In addition to the comments contractual relationship between the products. The Commissions note that supporting the Commissions’ proposed issuer and the listing market, the listing the underpinning for imposing news trading halt rule,88 the Commissions market has a direct and ongoing pending regulatory halts is promoting received three comments specifically relationship with the issuer. The investor protection and fair and orderly addressing the application of regulatory Commissions believe, therefore, that the markets. To the extent that there is halts to futures based on narrow-based listing market is in the best position to pending news that could impact an security indexes.89 One commenter be informed promptly by the issuer that investor’s decision and to the extent that neither specifically supported nor pending news would require the single-stock futures are surrogates for opposed the Commissions’ proposed 30 imposition of a trading halt. Finally, the the underlying security, the percent capitalization test, although it Commissions believe that the listing Commissions continue to believe in the suggested a possible alternative such as market represents sufficient liquidity need for a provision requiring that allowing narrow-based security index that imposing a trading halt on a trading in a security futures product be futures based principally on U.S. listed security futures product when the halted at all times that a regulatory halt securities to continue trading until they listing market for the underlying has been instituted for the underlying have become limit offered at a price security imposes a trading halt furthers security or securities, with certain limits limit corresponding to a particular the purposes of Section 2(a)(1)(D)(i)(X) for narrow-based security index futures. coordinated circuit breaker level.90 of the CEA83 and Section 6(h)(3)(K) of Furthermore, in the event that Another commenter believed that the the Exchange Act.84 discretion is needed, the Commissions Commissions’ proposal to require a With respect to the commenter’s note that the exemptive authority in trading halt in a narrow-based security concern regarding the potential impact CFTC Rule 41.25(d) and SEC Rule 6h– index future when a component security of such a rule on retail investors, the 1(d) allows the Commissions to exempt or securities that constitute 30 percent Commissions note that one of the national securities exchanges or or more of the market capitalization of purposes of trading halts is to provide national securities associations from the for an adequate opportunity for regulatory halt provisions if the CFTC 87 The Commissions’ rules do not preclude a determines that such an exemption is market trading security futures products from information about a security to be halting trading for other appropriate reasons, such consistent with the public interest and as operational difficulties being experienced by the 81 See CME Letter. See infra notes 103–104 and the protection of customers and the SEC market or its automated systems or concerns over accompanying text. clearance and settlement operations. 82 See Students Letter. 85 See CBOE Letter and FIA/SIA Steering 88 See supra notes 80 and 81. 83 7 U.S.C. 2(a)(1)(D)(i)(X). Committee Letter. 89 See CBOE Letter, CBOT Letter, and CME Letter. 84 15 U.S.C. 78f(h)(3)(K). 86 See CBOE Letter. 90 See CME Letter.

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the index are subject to a trading halt product based on that index a means of maintaining effective hedge positions was too low a threshold to justify the improperly circumventing regulatory with concerns about circumventing the disruption that it would inflict upon the halts in the underlying component coordination requirement by allowing futures market.91 Instead, this securities. Under these circumstances, trading in narrow-based index futures to commenter recommended that the trading halt procedures would not be continue when trading in a limited threshold be no lower than 50 percent coordinated, as required by Section number of the underlying securities is of an index’s capitalization to be 2(a)(1)(D)(i)(X) of the CEA95 and Section halted. consistent with the threshold required 6(h)(3)(K) of the Exchange Act,96 since The Commissions believe that while it for re-opening futures trading on broad- the security futures product would is not possible to eliminate completely based indexes following a market-wide continue to trade while investors would the risk involved in hedging securities halt. This commenter noted that when be precluded from trading the with a future on a narrow-based security trading in futures on a broad-based underlying securities. Moreover, the index when trading halts are instituted index is halted as a result of an SEC believes that continued trading in for certain of those underlying exchange-wide halt in the relevant the security futures product under these securities, the 50 percent threshold securities market, such futures trading circumstances could undercut key reduces such risk. Therefore, the resumes only when at least 50 percent provisions in the securities laws Commissions are adopting a 50 percent of the securities underlying an index, by designed to protect investors and threshold because it appears to market capitalization, have reopened for promote the fair and orderly operation appropriately balance the goals of trading.92 of the markets. hedging utility with the prevention of Another commenter recommended However, in response to the improper circumvention of regulatory providing exchanges with greater commenter’s statement that the 30 halts in the underlying securities. The discretion to decide whether to impose percent market capitalization test was Commissions also note that the 50 or maintain a trading halt.93 This too low, and therefore, potentially too percent threshold is consistent with commenter stated that by specifying a disruptive to the market, and after existing thresholds for re-opening specific percentage level, the proposed consideration of the potential effects of trading in broad-based security index rule implied that it would be improper the proposed 30 percent trading halt futures following a market-wide trading for an exchange to consider trading threshold, the Commissions are halt in the trading of the underlying interruptions in underlying stocks that requiring that trading be halted in a securities.97 collectively represent less than 30 narrow-based security index futures The Commissions reiterate, however, percent of an index. This commenter product when component securities that their rule is not designed to also believed that because not all representing 50 percent or more of the preclude a market trading futures on indexes underlying security futures market capitalization of that narrow- narrow-based security indexes from products may be capitalization based security index are subject to a halting trading when securities weighted, it may be difficult for regulatory halt. The Commissions representing less than 50 percent of the exchanges to determine on a real-time believe that one of the major economic market capitalization of the index are basis when securities comprising 30 benefits that market participants derive halted or for other appropriate reasons, percent of the market capitalization of a from the trading of futures on narrow- such as operational difficulties being price-weighted or equal dollar weighted based security indexes is the ability to experienced by the market or its index are halted. Similarly, one of the hedge positions containing the automated systems or concerns over commenters expressed a concern that, securities underlying the indexes, clearance and settlement operations. with respect to corporate news events, thereby reducing the risk of holding The Commissions also note that the it may be operationally difficult to positions in those securities. For traders threshold at 50 percent provides further determine on a real-time basis whether using a narrow-based security index discretion to national securities the threshold of market capitalization future to hedge a position containing the exchanges and national securities has been crossed.94 This commenter component index securities, trading associations to establish their thresholds hoped the Commissions would halts in certain of those component at lower levels, or to change the recognize the potential difficulty and securities necessarily will introduce thresholds as market conditions or accept good faith attempts to comply. basis risk because the one-to-one experience warrant. This provides The Commissions do not believe that relationship between the cash portfolio flexibility to the markets to modify trading in a narrow-based security index of securities and the narrow-based index trading halt thresholds, which would future should necessarily be halted future is disrupted. not be possible if the Commissions set because a trading halt has been The Commissions believe that the the threshold at a lower level. instituted for only one or several low- proposed 30 percent threshold is too With respect to the commenters’ weighted component securities. An low because it could unnecessarily concern regarding the potential inappropriately low threshold could disrupt hedge positions involving difficulty in calculating the market lead to needless and potentially futures on narrow-based security capitalization of an index, especially for disruptive trading halts in the narrow- indexes that may still be substantially price-weighted or equal dollar weighted based index future. However, as noted performing their intended risk-shifting indexes, for purposes of instituting the in the Proposing Release, regulatory function when trading is halted in a regulatory halt, the Commissions note halts of narrow-based-index component limited number of the index’s that selecting market capitalization as securities could affect a sufficiently component securities. The Commissions the method for calculating the weight of large portion of the index to make believe that a 50 percent threshold the index is similar to an existing continued trading of a security futures would better serve the requirement’s standard used to calculate trigger points intended purpose. In adopting a 50 for circuit breaker operations.98 The 91 See CBOT Letter. percent threshold, the Commissions Commissions chose to apply a similar 92 See, e.g., CBOT Rule 1008.01 and CME Rule sought to balance the utility of 4002.I., supra note 74. 97 See CBOT Rule 1008.01 and CME Rule 4002.I., 93 See CBOE Letter. 95 7 U.S.C. 2(a)(1)(D)(i)(X). supra note 74. 94 See CME Letter. 96 15 U.S.C. 78f(h)(3)(K). 98 See, e.g., CME Rule 4002.I., supra note 74.

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method in implementing regulatory halt is initiated by the primary market may also halt trading in a security halts to narrow-based security index for a security, the regional exchanges futures product if the primary market, futures products. In addition, in and Nasdaq also halt trading in the but not the listing market, halted trading specifying market capitalization as the security, and the options exchanges halt in the underlying security or securities, method for weighing an index, the rule trading in related options. The options but it is not mandated by the provides clarity and uniformity for all exchanges also halt trading in an equity Commissions’ rules. national securities exchanges and option when the underlying security has With respect to the Commissions’ national securities associations to utilize ceased trading.102 proposal to include within the in implementing regulatory halts in Although generally supporting the definition of ‘‘regulatory halt’’ trading security futures products based on requirement to halt trading in single- halts due to circuit breaker procedures, narrow-based security indexes and stock futures when trading in the three commenters generally supported helps prevent the trading of security underlying security has been halted due the extension of market-wide circuit futures products from becoming a to a corporate news event, one breaker procedures to security futures means of circumventing regulatory halts commenter stated that the definition of products in order to ensure coordinated in the underlying securities. regulatory halt could be refined to and consistent circuit breaker address situations not contemplated by procedures across equity products.105 c. Definition of a Regulatory Halt the CFMA, such as where the listing One of the commenters, however, noted The Commissions are adopting the market is not the primary trading venue a potential competitive issue over definition of regulatory halt as for the underlying security or where the security futures product ‘‘look-alikes’’ proposed.99 Specifically, a regulatory listing market is in a foreign country.103 that can trade in the unregulated halt is defined as a delay, halt, or In response to this comment, the upstairs market and do currently trade suspension in the trading of a security Commissions note that the rule being in foreign jurisdictions that may not by the national securities exchange or adopted today does not preclude adhere to the coordinated circuit 106 national securities association that lists national securities exchanges and breaker procedures. This commenter the security as a result of a news national securities associations trading recommended that the Commissions pending regulatory halt or the operation security futures products from halting provide exchanges with latitude in of circuit breakers. The definition of trading if they believe it is necessary to implementing coordinated circuit regulatory halt does not include the the orderly operation of the market. The breaker procedures and flexibility in listing market’s halting of trading rules of a national securities exchange imposing this requirement on security because of an imbalance of buy and sell or national securities association may futures products where the principal orders in a particular security or when permit it to halt trading in situations not trading venues for the underlying trading is disrupted due to a problem in covered by the rule being adopted securities (or for a subset in the case of its systems or on its trading floor. The today.104 To the extent that the security narrow-based indexes) are in foreign definition of regulatory halt in the rule or securities underlying a security markets. The Commissions note that the adopted today incorporates the futures product is listed on a foreign coordinated cross-market trading halts definition of news pending regulatory market, under the rule adopted today, provided by circuit breaker procedures halt contained in the Consolidated Tape national securities exchanges and are designed to operate only during Association Plan (‘‘CTA Plan’’).100 national securities associations have the significant market declines and to Under the CTA Plan, a regulatory halt flexibility to impose trading halt substitute orderly, pre-planned halts for occurs whenever the primary market for requirements where the underlying the ad hoc and destabilizing halts that any eligible security, in the exercise of security is listed solely on a foreign its regulatory functions, halts or can occur when market liquidity is market. Further, the Commissions exhausted. The circuit breakers also suspends trading in the security because believe that it would be unduly protect investors and the market by the primary market has determined (i) burdensome and administratively providing opportunities for market and that there are matters relating to the difficult to require national securities market participants to assess market security or issuer that have not been exchanges and associations to calculate conditions and potential systemic stress adequately disclosed to the public, or the primary market for each security during a historic market decline. In (ii) that there are regulatory problems underlying a security futures product. approving the original circuit breakers relating to the security which should be Again, under their rules, national proposed by the securities market, the clarified before trading is permitted to securities exchanges and associations SEC noted that the circuit breakers were continue.101 When a regulatory trading an effort by the securities and futures this standard and call for a regulatory halt is when markets to arrive at a coordinated means 99 See CFTC Rule 41.1(l) and SEC Rule 6h–1(a)(3). it is unclear whether a security continues to meet 100 See Securities Exchange Act Release No. the listing standards of the market on which the to address potentially destabilizing 41315 (April 20, 1999), 64 FR 23142 (April 29, security is listed. market volatility of the severity of the 1999) (noting that the NYSE follows the CTA Plan 102 The rules of the options exchanges generally October 1987 market break.107 when instituting a regulatory halt); and Securities provide for halts in options whenever it is Therefore, in the interest of having Exchange Act Release No. 41877 (September 14, appropriate in the interests of a fair and orderly 1999), 64 FR 51566 (September 23, 1999) (noting market and to protect investors. See Amex Rule coordinated trading halts across the U.S. that Amex follows the CTA Plan when instituting 918(b); CBOE Rule 6.3(a) and .04 of the equity markets, the Commissions do not a regulatory halt); see also CTA Plan (Second Interpretations and Policies of CBOE Rule 6.3; ISE agree that the exchanges should have Restatement), Section XI (a). The CTA Plan is a joint Rule 702; PCX Rule 6.65(a); and Phlx Rule 1047(b). latitude in implementing coordinated industry plan that governs the consolidated 103 See CME Letter. circuit breaker procedures on security transaction reporting system, and each of the 104 One commenter believed that the participants agrees to comply with the provisions Commissions should expand on the examples of the futures products where the underlying of the plan. Recognizing the importance of reasons why national securities exchanges and disseminating information with respect to trading associations could impose additional trading halts 105 See CBOE Letter and FIA/SIA Steering halts in certain securities, the CTA Plan imposes to include order imbalances. See NYSE Letter. As Committee Letter; see also CME Letter. notification obligations upon the primary market noted above, the rule being adopted today does not 106 See CME Letter. whenever a regulatory halt occurs. preclude a market trading security futures products 107 See Securities Exchange Act Release No. 101 See CTA Plan (Second Restatement), Section from establishing rules that permit or require it to 26198 (October 19, 1988), 53 FR 41637 (October 24, XI (a). For example, an event that may qualify under halt trading for other appropriate reasons. 1988).

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security is not solely listed in a foreign C. Commissions’ Interpretation of products to be Full Members of ISG.117 market. To the extent that additional Statutory Requirements for Coordinated The CFTC received three comment latitude is needed, the Commissions Surveillance letters regarding this aspect of the CFTC have the discretion to grant separate Proposal.118 All of the commenters exemptions in those circumstances if 1. Markets Trading Security Futures raised concerns regarding mandatory the CFTC determines that such an In amending the CEA and Exchange memberships in ISG. As a result, the exemption is consistent with the public Act to permit the trading of futures on CFTC deferred making a decision on interest and the protection of customers single stocks and narrow-based security requiring membership in ISG to allow and the SEC determines that such indexes, Congress specifically required the Commissions together to consider exemption is necessary or appropriate that exchanges and associations trading the appropriate means of ensuring that the coordinated surveillance in the public interest and consistent these new products have procedures in requirement under the CEA and the with the protection of investors. place for coordinated surveillance with Exchange Act is satisfied.119 For these reasons, the Commissions other markets on which security futures As noted in the Proposing Release, believe that it is important to include products trade, any market on which ISG was created under the auspices of within the definition of regulatory halt any security underlying the security the SEC as a forum to ensure that cross-market circuit breakers and, futures product is traded, and other national securities exchanges and therefore, to require the application of markets on which any related security 113 national securities associations cross-market circuit breaker regulatory trades. Because security futures adequately share surveillance halt procedures to security futures products are surrogates for the securities information and coordinate inquiries products. Moreover, the Commissions on which their values are based, such and investigations designed to address believe that such requirement is coordinated surveillance is essential to potential intermarket manipulations and necessary to satisfy the requirements of detection of manipulation and insider trading abuses. Full Members routinely Section 2(a)(1)(D)(i)(X) of the CEA108 trading. As discussed in detail below, share a great deal of surveillance and and Section 6(h)(3)(K) of the Exchange the Commissions interpret the statutory investigatory information, and the SEC Act.109 If cross-market circuit breaker requirement for coordinated continues to believe that this framework regulatory halt procedures were not surveillance to mean that if an exchange has proven to be an effective mechanism applied to the security futures products, or association is a Full Member of the to ensure that there is adequate such a failure would undermine the use Intermarket Surveillance Group information sharing and investigatory of trading halts in the underlying (‘‘ISG’’) 114 or has the ability to obtain all coordination for potential intermarket securities markets. information that a Full Member of the manipulations and trading abuses. ISG is currently able to obtain from both The Commissions continue to believe d. Exemptions current and former members, including, that any national securities exchange— among other things, the ability to obtain As discussed previously,110 the including an exchange registered under market surveillance reports or Section 6(g) of the Exchange Act—that Commissions are expanding the information, and information relating to exemption provisions in CFTC Rule satisfies the requirements to be a Full investigations, then that market would Member of ISG should be admitted as a 41.25(d) and SEC Rule 6h–1(d), which meet the statutory requirement for were originally proposed to apply only Full Member of ISG. Nevertheless, in coordinated surveillance. light of comment letters received on the to the final settlement prices for security CFTC Proposal, we do not believe that futures products. Under the final rule, For an exchange or association to an exchange trading security futures the CFTC has the authority to grant an satisfy the statutory requirement that products must be a Full Member of ISG exemption with respect to any provision ‘‘procedures be in place for coordinated surveillance,’’ the Commissions stated to satisfy the requirement that of paragraphs (a)(2) and (b) of CFTC ‘‘procedures be in place for coordinated Rule 41.25, provided that the CFTC in the Proposing Release that they believed it was ‘‘essential that all such surveillance among the market on finds that the exemption is consistent which the security futures product is with the public interest and the exchanges and associations be Full 115 traded, any market on which any protection of customers.111 The SEC has Members of the ISG.’’ In view of the role that the ISG plays, the Commissions security underlying the security futures the authority to grant an exemption with product is traded, and other markets on respect to any provision of SEC Rule stated their belief that the ISG should grant full memberships to all national which any related security is traded to 6h–1, provided that the exemption is detect manipulation and insider necessary or appropriate in the public securities exchanges and national securities associations registered trading.’’ 120 interest and consistent with the In particular, the Commissions protection of investors.112 Because pursuant to Section 15A(a) of the Exchange Act 116 trading securities believe that exchanges and associations exchanges and associations are subject trading security futures products may to the requirements of both CFTC Rule futures products, including Security Futures Product Exchanges, upon a also satisfy the CEA’s and Exchange 41.25(a)(2) and (b) and SEC Rule 6h–1, Act’s coordinated surveillance to be exempt from such requirements an good-faith showing that the entities meet the criteria for full membership. requirement through Affiliate exchange or association would have to Membership in ISG, if the Affiliate obtain an exemption from both the The CFTC in a separate proposing Members trading security futures CFTC and the SEC. release also proposed, in part, to require products also enter into supplemental boards of trade trading security futures 108 7 U.S.C. 2(a)(1)(D)(i)(X). 117 See 66 FR 37932 (July 20, 2001) (‘‘CFTC 109 15 U.S.C. 78f(h)(3)(K). 113 Section 2(a)(1)(D)(i)(VIII) of the CEA, 7 U.S.C. Proposal’’). 110 See supra discussion at II.A.3.e., Exemptions, 2(a)(1)(D)(i)(VIII); Section 6(h)(3)(I) of the Exchange 118 The CFTC received comment letters from which discusses the expansion of the exemption to Act, 15 U.S.C. 78f(h)(3)(I). CME, Amex, and ISG. make it more consistent with the SEC’s exemptive 114 ISG Full Members are Amex, BSE, CBOE, 119 See 66 FR 55078 (November 1, 2001). authority under Section 36 of the Exchange Act. CHX, CSE, ISE, NASD, NYSE, PCX and Phlx. 120 Section 2(a)(1)(D)(i)(VIII) of the CEA, 7 U.S.C. 111 See CFTC Rule 41.25(d). 115 See Proposing Release, supra note 18. 2(a)(1)(D)(i)(VIII); Section 6(h)(3)(I) of the Exchange 112 See SEC Rule 6h–1(d). 116 15 U.S.C. 78o–3(a). Act, 15 U.S.C. 78f(h)(3)(I).

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agreements with other Affiliate request information and documents Full Members. The Commissions Members trading security futures from each other relating to ongoing believe that any restrictions on the products and with Full Members to investigations.126 This information can ability of Affiliate or Full Members to share the same information as Full be very useful in assisting an exchange share information could hinder the Members of ISG currently share with performing its own, related ability of these members to coordinate each other.121 The Commissions, investigation. However, the agreement surveillance. however, believe that the current between Full Members and Affiliate As discussed above, the Commissions information sharing agreement among Members (and among Affiliate believe that the limitations on an Affiliate Members and the agreement Members) does not provide for the Affiliate Member’s obligations to share between Affiliate and Full Members sharing of this type of information. It is information could be easily addressed (referred to in Appendix A as ‘‘Affiliate the Commissions’ understanding that through means other than becoming Agreement’’) is insufficient to satisfy the these agreements did not provide for the Full Members of ISG. For example, obligation of a market trading security sharing of investigatory information due Affiliate Members trading security futures products to coordinate to a perceived prohibition in the CEA futures products and Full Members surveillance with other markets trading that restricted the sharing of such could enter into a supplementary security futures and with markets information.127 The CFTC, however, agreement to share the information trading related products because of believes the CEA allows the sharing of described above among each other certain limitations on the information investigatory documents and despite the limitations in the current that must be shared.122 The information, provided that the futures agreements.132 If Full and Affiliate Commissions believe, however, that market providing such information Members enter into this type of these limitations, discussed below, can adopts a rule allowing for the sharing of agreement, the Commissions believe be overcome if Affiliate Members information pursuant to an information that the markets would meet the trading security futures products and sharing arrangement.128 Therefore, statutory requirement for coordinated Full Members agree to share information because there is no legal prohibition on surveillance. beyond what is currently required by sharing investigatory information, the The Commissions also believe that the ISG for Affiliate Members. Commissions believe that such exchanges trading security futures For example, ISG provides to Full information may be shared between products could satisfy the requirement Members market surveillance reports. It Affiliate and Full Members and among to coordinate surveillance by entering is unclear whether Full Members have Affiliate Members trading security into bilateral surveillance agreements access to market surveillance reports of futures products. Without the sharing of with each exchange, association, or Affiliate Members or whether Affiliate such investigatory information, market on which any security Members have access to such investigations by an Affiliate Member underlying the security futures product information from each other. The into manipulation or trading abuses or related security is traded to detect Commissions understand that this related to the trading of security futures manipulation and insider trading. The information is, as a practical matter, could be hindered unnecessarily. In Commissions, however, believe that made available to all ISG members upon addition, a Full Member’s inability to such bilateral agreements would have to request, but believe that the obligation obtain such information or documents contain essentially the same information to provide such information upon from an Affiliate Member could hinder sharing obligations that Full Members of request should be explicit. In addition, the Full Member’s investigation of ISG currently have with respect to each Full Members are required to share manipulation or trading abuses in other other.133 information and documents, upon securities that were related to Accordingly, if a market trading request, about current and former manipulation or trading abuses in the 123 security futures products becomes a Full members. Affiliate Members, trading of security futures on an however, are only required to share with Member of the ISG, becomes an Affiliate Affiliate Member’s market. Member of the ISG and enters into a each other and with Full Members Finally, once information is information and documents relating to supplemental agreement to share the requested, Affiliate Members are additional information described above current members.124 Similarly, Full generally only required to use ‘‘best Members are only required to share with with Full Members and other Affiliate efforts’’ in accordance with their rules to Members trading security futures Affiliate Members information about 129 obtain the information. In addition, products, or enters into appropriate current members, not about their former Affiliate Members only need to provide 125 bilateral surveillance agreements to members. The Commissions believe the information to Full Members to the that information about former members detect manipulation and insider trading extent that it is not inconsistent with its with each exchange, association or is necessary under some circumstances 130 rules or with applicable law. market on which security futures to facilitate investigations by Full and Similarly, Full Members are only Affiliate Members. products trade, and any market on required to use best efforts in which any security underlying the Moreover, the agreement among Full accordance with their rules to obtain the Members allows Full Members to security futures product or related requested information for Affiliate security is traded, the Commissions Members and to provide such 121 An ISG Affiliate Member is a contract market believe that the market would satisfy the or foreign self-regulatory organization that has information to the extent that it is not requirements of Section become affiliated with ISG. See Appendix A for the inconsistent with its rule or applicable 2(a)(1)(D)(i)(VIII) of the CEA and Section 131 relevant provisions of the agreement among Full law. Such limitations are not 6(h)(3)(I) of the Exchange Act.134 Members of ISG. included as part of the agreement among 122 Futures exchanges and non-U.S. exchanges and associations are Affiliate Members of ISG. The 132 The Commissions note that this may require 126 limitations in an Affiliate Member’s obligations to See Appendix A, Section 2(b). exchanges and associations trading security futures share information is of less concern when an 127 See 8c(a)(2) of the CEA, 7 U.S.C. 12c(a)(2). products to implement rules allowing for the Affiliate Member is not trading securities. 128 See 8a(6) of the CEA, 7 U.S.C. 12a(6). sharing of information. See supra notes 126–128. 123 See Appendix A, Section 2(b). 129 See, e.g., Appendix A, Section 2(c). 133 See Appendix A, Section 2. 124 See, e.g., Appendix A, Section 2(c). 130 Id. 134 7 U.S.C. 2(a)(1)(D)(i)(VIII); 15 U.S.C. 125 See, e.g., Appendix A, Section 2(d). 131 See, e.g., Appendix A, Section 2(d). 78f(h)(3)(I).

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2. Exchanges Trading Securities Other associations trading securities that are A. Summary of Collection of Than Security Futures related to security futures traded by an Information Sections 6(b)(1) and 15A(b)(2) of the exchange or association that is not a As discussed above, the Exchange Exchange Act require all national Full Member of ISG could satisfy the Act, as amended by the CFMA, provides securities exchanges and national requirement to coordinate surveillance that a national securities exchange or securities associations to enforce by entering into bilateral surveillance national securities association may trade compliance by their members and agreements with such exchange or security futures products only if the persons associated with their members, association that is adequate to detect listing standards for such products with the provisions of the Exchange Act manipulation and insider trading. The conform with the requirements set forth and the rules and regulations Commissions, however, believe that in Section 6(h)(3) of the Exchange thereunder.135 Securities exchanges’ such bilateral agreements would have to Act.140 These listing standards must, and associations’ memberships in ISG contain essentially the same information among other things, require that: (1) currently enable them to satisfy this sharing obligations that Full Members of Trading in the security futures product requirement with respect to ISG currently have with respect to each not be readily susceptible to enforcement of the proscriptions against other. manipulation of the price of such insider trading and the anti- security futures product, nor to causing III. Paperwork Reduction Act manipulation provisions of the federal or being used in the manipulation of the securities laws.136 Security futures CFTC: This rulemaking contains price of any underlying security, option products are surrogates for their information collection requirements. As on such security, or option on a group 141 underlying securities and, therefore, required by the Paperwork Reduction or index including such securities, there is the potential that trading in this Act of 1995, 44 U.S.C. 3507(d), the and (2) the market on which the security new product could be used to CFTC submitted a copy of the proposed futures product is traded has in place manipulate trading in the underlying amendments to its rules to the Office of procedures to coordinate trading halts between such market and any market on security or in other related securities, Management and Budget (OMB) for its which any security underlying the such as options. Accordingly, the SEC review. believes that the introduction of security security futures product is traded and futures products means that, to satisfy Collection of Information: Part 41, other markets on which any related their obligations under Sections 6 and Relating to Security Futures Products, security is traded.142 To further these 15A of the Exchange Act,137 exchanges OMB Control Number 3038–0059. statutory mandates, the SEC is adopting and associations that trade securities No comments were received in SEC Rule 6h–1 to generally provide that: that are related to security futures must response to the CFTC’s invitation in the (1) the final settlement price for each have the same ability to share proposed rules to comment on any cash-settled security futures product information and to coordinate paperwork burden associated with these fairly reflect the opening price of the surveillance with markets trading such regulations.138 underlying security or securities; and (2) the trading in any security futures security futures products as they SEC: Certain provisions of the new currently have through ISG with product halt when a regulatory halt is rule contain ‘‘collection of information instituted with respect to a security or exchanges and associations trading requirements’’ within the meaning of other securities. For this reason, the SEC securities underlying the security the Paperwork Reduction Act of 1995 futures product by the national believes that the limitations described 139 (‘‘PRA’’). Accordingly, the securities exchange or national above in the current obligations of Commission submitted the proposed Affiliate Members to share information securities association listing the rule to the Office of Management and security. The SEC anticipates that with Full Members would also Budget (‘‘OMB’’) in accordance with 44 unnecessarily hinder or constrain the national securities exchanges and U.S.C. 3507(d) and 5 CFR 1320.11. OMB national securities associations that ability of national securities exchanges approved the new collection and and national securities associations to wish to trade security futures products assigned it OMB Control No. 3235– will file with the SEC proposed rule enforce compliance with the federal 0555. An agency may not conduct or securities laws. changes, pursuant to Section 19(b) of sponsor, and a person is not required to 143 The SEC believes that exchanges and the Exchange Act, to establish listing respond to, a collection of information associations could address these standards that are consistent with the unless it displays a currently valid limitations on the obligations of requirements set forth in Section 6(h)(3) control number. 144 Affiliate Members to share information of the Exchange Act. by, for example, entering into a In the Proposing Release, the B. Proposed Use of Information Commissions solicited comments on supplementary agreement to share such The SEC will review these proposed information among Full and Affiliate these collection of information requirements. The Commissions rule changes in the manner prescribed Members despite the limitations in the by Section 19(b) of the Exchange Act. In received no comments that specifically current agreements. Alternatively, the addition, the SEC will publish these addressed the PRA portion of the SEC believes that exchanges or proposed rule changes to afford the Proposing Release. Because the new rule public an opportunity to comment on 135 In addition, Sections 6(b)(1) and 15A(b)(2) of is substantially similar to the proposed the listing standards adopted by the Exchange Act require all national securities rule, the SEC continues to believe that national securities exchanges and exchanges and national securities associations to the estimates published in the enforce compliance by their members and persons national securities associations with Proposing Release regarding the associated with their members, with the provisions respect to security futures products. of the exchanges’ or associations’ own rules. proposed collection of information Section 6(b)(1) of the Exchange Act, 15 U.S.C. burdens associated with the new rule 78f(b)(1); Section 15A(b)(2) of the Exchange Act, 15 140 15 U.S.C. 78f(h)(3). U.S.C. 78o–3(b)(2). are appropriate. 141 See 15 U.S.C. 78f(h)(3)(H). 136 Sections 9 and 10(b) of the Exchange Act, 15 142 See 15 U.S.C. 78f(h)(3)(K). U.S.C. 78i and 78j(b). 138 See Proposing Release, 66 FR at 45912. 143 15 U.S.C. 78s(b). 137 15 U.S.C. 78f and 15 U.S.C. 78o–3. 139 44 U.S.C. 3501 et seq. 144 15 U.S.C. 78f(h)(3).

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C. Respondents and trading reconstructions, as well as and narrow-based security indexes 152 The SEC estimates that there will be for inspections and examinations. (‘‘security futures’’). The CFMA provides, among other things, that the 17 respondents to the proposed rule: 9 IV. Costs and Benefits of the Final Rule currently registered national securities listing standards for security futures exchanges, 1 national securities CFTC: Section 15 of the CEA requires products must require that trading in association (the NASD) that operates a the CFTC to consider the costs and security futures products not be readily benefits of its action before issuing a susceptible to manipulation of the price securities market (Nasdaq), and an 148 estimated 7 futures markets that are new regulation. The CFTC of such security futures product, nor to expected to register as Security Futures understands that, by its terms, Section causing or being used in the Product Exchanges. 15 does not require the CFTC to manipulation of the price of any quantify the costs and benefits of a new underlying security, option on such D. Total Annual Reporting and regulation or to determine whether the security, or option on a group or index Recordkeeping Burden benefits of the proposed regulation including such securities.153 In The SEC received no comments on its outweigh its costs. Nor does Section 15 addition, listing standards must require proposed estimates and has not revised require that each proposed rule be that the market on which the security them. The SEC estimates the paperwork analyzed in isolation when that rule is futures product trades has in place burden for each respondent to comply a component of a larger package of rules procedures to coordinate trading halts with proposed SEC Rule 6h–1 will be 10 or rule revisions. Rather, Section 15 between such market and any market on hours of legal work at $128/hour,145 for simply requires the CFTC to ‘‘consider which any security underlying the a total cost of $1,280 per respondent. the costs and benefits’’ of its action. security futures product is traded and The SEC estimates that the total burden Section 15 further specifies that costs other markets on which any related on all respondents will be 170 hours (10 and benefits shall be evaluated in light security is traded.154 hours/response x 17 respondents x 1 of five broad areas of market and public Accordingly, the SEC is adopting new response/respondent), for a total cost of concern: protection of market SEC Rule 6h–1 under the Exchange Act $21,760 ($1,280/response x 17 participants and the public; efficiency, generally to require that the final respondents x 1 response/respondent). competitiveness, and financial integrity settlement price for each cash-settled The SEC believes that these burdens of futures markets; price discovery; security futures product fairly reflect the will be incurred on a one-time basis and sound risk management practices; and opening price of the underlying security will not recur. other public interest considerations. or securities, and that trading in any Accordingly, the CFTC could in its security futures product halt when a E. Record Retention Period discretion give greater weight to any one regulatory halt is instituted with respect As set forth in SEC Rule 17a–1,146 a of the five enumerated areas of concern to a security or securities underlying the national securities exchange or national and could in its discretion determine security futures product by the national securities association must retain that, notwithstanding its costs, a securities exchange or national records of the collection of information particular rule was necessary or securities association listing the for at least five years, the first two years appropriate to protect the public interest security. in an easily accessible place. However, or to effectuate any of the provisions or Specifically, SEC Rule 6h–1(a) defines SEC Rule 17a–1 requires a national to accomplish any of the purposes of the the terms ‘‘opening price,’’ ‘‘regular securities exchange registered under Act. trading session,’’ and ‘‘regulatory halt’’ Section 6(g) of the Exchange Act to The CFTC considered the costs and generally as proposed.155 However, the retain only those records relating to benefits of these rules in light of the SEC has incorporated a provision into persons, accounts, agreements, specific areas of concern identified in the definition of ‘‘opening price’’ to contracts, and transactions involving Section 15,149 and concluded that the clarify that if a security is not listed on security futures products.147 rules should have no effect, from the a national securities exchange or a F. Collection of Information Is standpoint of imposing costs or creating national securities association, the Mandatory benefits, on the financial integrity or opening price shall be the price at price discovery function of the futures which a security opened for trading, or This collection of information is and options markets or on the risk a price that fairly reflects the price at mandatory for any national securities management practices of trading which a security opened for trading, on exchange or national securities facilities or others. The rules also the primary market for the security. association that elects to list and trade should have no material effect on the Also like the proposed rule, adopted security futures products. protection of market participants and SEC Rule 6h–1(b)(1) requires that the G. Confidentiality the public and should not impact the final settlement price of a cash-settled security futures product must fairly Any information filed with the efficiency and competition of the reflect the opening price of the Commission will be made publicly markets. The CFTC invited public comment on available. Information in the files of the costs and benefits of the proposed 152 After December 21, 2003, the SEC and the national securities exchanges or rules.150 The CFTC received no CFTC may jointly determine to permit trading of national securities associations that puts, calls, straddles, options, or privileges on comments. Accordingly, the CFTC has elect to list and trade security futures security futures (along with security futures, determined to adopt the rules discussed products will be subject to Commission collectively referred to as ‘‘security futures above. products’’). See Section 2(a)(1)(D)(iii) of the CEA, 7 enforcement inquiries or investigations SEC: The CFMA 151 authorizes the U.S.C. 2(a)(1)(D)(iii); Section 6(h)(6) of the trading of futures on individual stocks Exchange Act, 15 U.S.C. 78f(h)(6). 145 The estimated rate of $128 per hour is derived 153 See Section 2(a)(1)(D)(i)(VII) of the CEA, 7 from the SIA Management and Professional U.S.C. 2(a)(1)(D)(i)(VII); Section 6(h)(3)(H) of the Earnings, Table 107 (Attorney, New York), and 148 7 U.S.C. 19. Exchange Act, 15 U.S.C. 78f(h)(3)(H). includes a 35 percent differential for bonus, 149 See Proposing Release, 66 FR at 45914. 154 See Section 2(a)(1)(D)(i)(X) of the CEA, 7 overhead, and other expenses. 150 See Proposing Release, 66 FR at 45914. U.S.C. 2(a)(1)(D)(i)(X); Section 6(h)(3)(K) of the 146 17 CFR 240.17a–1. 151 Pub. L. No. 106–554, Appendix E, 114 Stat. Exchange Act, 15 U.S.C. 78f(h)(3)(K). 147 See 15 U.S.C. 78q(b)(4)(B). 2763. 155 SEC Rule 6h–1(a).

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underlying security or securities.156 Finally, the SEC has expanded the generally to the costs and benefits of the However, if the opening price for one or exemption in SEC Rule 6h–1(d) to adopted rule. The SEC anticipates that more securities underlying a security permit the SEC to grant a national the rule adopted today will generate the futures product is not readily securities exchange or national costs and benefits described below and available,157 SEC Rule 6h–1(b)(2) securities association an exemption has incorporated the general comments provides that the final settlement price from any provision of SEC Rule 6h–1 if into the applicable discussion. of the security futures product shall the SEC determines that such an B. Benefits of SEC Rule 6h–1 Under the exemption is necessary or appropriate fairly reflect the price of the underlying Exchange Act security or securities during its most in the public interest and consistent recent regular trading session or the with the protection of investors. The Adopted SEC Rule 6h–1(a) defines the next available opening price of the SEC has expanded the scope of the terms ‘‘opening price,’’ ‘‘regular trading underlying security or securities.158 exemption to make it more consistent session,’’ and ‘‘regulatory halt.’’ As a Furthermore, notwithstanding SEC Rule with its exemptive authority under definitional provision, subparagraph (a) 6h–1(b)(1) or (b)(2), the SEC amended Section 36 of the Exchange Act, which imposes no costs on the respondents. the proposed rule to add SEC Rule 6h– allows the SEC, by rule, regulation, or However, by defining the terms, the SEC 1(b)(3), which states that if a clearing order to conditionally or believes that adopted SEC Rule 6h–1(a) agency to which a final settlement price unconditionally exempt any person, should benefit respondents by providing of a security futures product is or would security, or transaction, or any classes legal certainty to respondents when be reported determines, pursuant to its thereof, from any rule or regulation complying with the rule. rules, that such final settlement price is under the Exchange Act, to the extent One commenter stated that the not consistent with the protection of that such exemption is necessary or definition of ‘‘opening price’’ failed to investors and the public interest, the appropriate in the public interest, and is anticipate instances where the market clearing agency has the authority to consistent with the protection of trading a security underlying a security determine, under its rules, a final investors.161 futures product may be a market other than a national securities exchange or settlement price for such security A. Comments national securities association, such as a futures product. Under SEC Rule 6h– 162 foreign stock exchange.164 Therefore, 1(b)(3), the clearing agency must take In the Proposing Release, the SEC the SEC has revised the definition to into account such factors as fairness to requested comments on all aspects of provide that, if the underlying security buyers and sellers of the affected the costs and benefits of the adopted is not listed on a national securities security futures product, the rule, including identification of exchange or a national securities maintenance of a fair and orderly additional costs and benefits of the association, the opening price is the market in such security futures product, changes. In addition, the SEC price at which the security opened for and consistency of interpretation and encouraged commenters to identify, trading, or a price that fairly reflects the practice. discuss, analyze, and supply relevant price at which a security opened for With respect to regulatory halts for data regarding the proposed rule. trading, on the primary market for the security futures products, the SEC is Specifically, the SEC requested data to security. The SEC believes that the generally adopting the provision as quantify the costs and benefits of the additional language should provide proposed requiring that trading of a proposed rule. The SEC requested clear guidance and clarification of the security futures product based on a estimates of these costs and benefits, as term ‘‘opening price’’ in those instances single security be halted at all times that well as any costs and benefits not where the security futures products may a regulatory halt has been instituted for already described, which may result be based on securities that are not listed the underlying security.159 The trading from the adoption of the proposed rule. in the United States. To the extent that of security futures product based on a Furthermore, the SEC requested the underlying security is listed on a narrow-based security index must be comment on the estimate of the number national securities exchange or national halted at all times that a regulatory halt of respondents that would be affected by securities association, the SEC believes has been instituted for one or more of proposed SEC Rule 6h–1 and the costs that it is appropriate to use the opening the underlying securities that constitute and benefits associated with complying price from the listing market. Despite 50 percent or more of the market with the proposed rule. The SEC the commenter’s view that the listing capitalization of the narrow-based specifically requested comments on the market may not be the primary trading security index.160 operational and maintenance costs associated with the proposal and venue for a security and, thus, not the 165 156 SEC Rule 6h–1(b). whether these costs would be most liquid market, the SEC believes 157 Although SEC Rule 6h–1(b)(2) does not define significant. Commenters were asked to that the listing market is a significant when an opening price would not be ‘‘readily provide analysis and empirical data to source of liquidity for a security that available,’’ national securities exchanges and support their views on the costs and underlies a security futures product and national securities associations would have to that a rule requiring, for example, the establish, as part of their listing standards, rules benefits associated with the proposal. that interpret this term. Although no comments specifically calculation of trading volumes to 158 The SEC amended the proposed rule to allow addressed the Costs and Benefits determine the appropriate primary look forward pricing in response to analysis in the Proposing Release,163 market from which to derive an opening recommendations by commenters. there were comments that may apply price for a security listed in the U.S. 159 SEC Rule 6h–1(c)(1). would impose unnecessary burdens 160 In the Proposing Release, the SEC originally proposed halting trading in a security futures at a threshold of less than 50 percent of the market without significantly furthering anti- product when 30 percent of the market capitalization of the index or for other appropriate manipulation goals. capitalization of a narrow-based security index reasons, such as operational difficulties being Further, this commenter stated that halted trading in the underlying markets. As experienced by the market or its automated systems or concerns over clearance and settlement the proposed definition of the term discussed further below, this change was made in ‘‘regulatory halt,’’ which is being response to commenters. See SEC Rule 6h–1(c)(2). operations. The rule being adopted today does not preclude a 161 See supra note 66 and accompanying text. market trading security futures products based on 162 See Proposing Release, supra note 18. 164 See CME Letter. narrow-based security indexes from halting trading 163 See Proposing Release, supra note 18. 165 See CME Letter.

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adopted as proposed, also does not security futures product not be readily commenters generally opposed the address situations where the listing susceptible to manipulation of the price SEC’s exclusive use of a ‘‘look back’’ market is not the primary trading venue of such product, nor to causing or being settlement procedure for security for the underlying security or where the used in the manipulation of the price of futures products when the opening listing market is in a foreign country.166 any underlying security, option on such prices for the underlying securities are The SEC notes that the rule adopted security, or option on a group or index unavailable and, instead, recommended today is not intended to limit the ability including such securities. using the next day’s opening prices.172 of national securities exchanges and The SEC believes that SEC Rule 6h– These commenters noted that the national securities associations to 1(b)(1) should facilitate the ability of the existing cash settlement procedures for impose a trading halt in other securities markets to handle expiration- stock index options and stock index circumstances, such as when the related unwinding programs and futures allow ‘‘next opening’’ prices.173 underlying security is listed on a foreign mitigate the liquidity strains that had Further, one commenter, a clearing market that has halted trading. The rule previously been experienced in the agency, urged the SEC not to require provides national securities exchanges securities markets on expirations for national securities exchanges and and national securities associations with stock index futures and options. The national securities associations to adopt the flexibility to submit proposed rule SEC further believes that the liquidity rules addressing the determination of changes that address situations not constraints associated with expiration- security futures final settlement prices covered by the rule being adopted related buy or sell programs at the close when opening prices are not readily 167 today. However, in those instances on expiration Fridays aggravated available because of potential conflicts where the underlying security is listed ongoing market swings during an with clearing agency rules.174 Another in the United States, the SEC believes expiration and provided opportunities commenter believed that the that by specifically designating the for entities to anticipate these pressures establishment of consistent and listing market as the appropriate venue, and enter orders as part of manipulative commercially appropriate alternative the rule allows for ease of application or abusive trading practices designed to pricing conventions should be resolved and clear guidance for respondents to artificially drive up or down share by a collaboration among the exchanges 170 administer and implement the rule. For prices. that design the product and the The SEC notes that the rule adopted example, the SEC believes that, due to clearinghouse, with appropriate today provides national securities the contractual relationship between the consultation with their members and issuer and the listing market, the listing exchanges and national securities participants.175 Furthermore, several market has a direct and ongoing associations with flexibility to commenters argued that under the SEC’s relationship with the issuer and, implement the requirements of the proposed rule hedges could be therefore, is in the best position to be Exchange Act. The SEC notes that the significantly disrupted.176 informed promptly by the issuer that rule adopted today does not mandate pending news would require the that a particular methodology be used to In response to the commenters, the imposition of a trading halt. derive an opening price. A national final rule adopted by the SEC allows Adopted SEC Rule 6h–1(b)(1) requires securities exchange or national either look-back or look forward that the final settlement price of a cash- securities association would retain the opening prices to be used as alternate settled security futures product must flexibility to establish the procedures to final settlement prices when an opening fairly reflect the opening price of the determine the opening price, which will price is not readily available. underlying security or securities. be used to determine the settlement Specifically, adopted SEC Rule 6h– Several commenters generally price of security futures products. The 1(b)(2) requires that, if an opening price supported this aspect of the proposal.168 SEC believes that this flexibility should for one or more securities underlying a The SEC believes that the provision for provide respondents with the ability to security futures product is not readily cash-settled security futures products meet the needs of the market place, available, the final settlement price of under adopted SEC Rule 6h–1(b)(1) is while satisfying their obligations under the security futures product shall fairly necessary to minimize opportunities for the Exchange Act. reflect (i) the price of the underlying intermarket manipulations and to In those instances where the opening security or securities during the most promote the fair and orderly operation price was not readily available, the SEC recent regular trading session for such of the securities markets. In particular, proposed that the final settlement price security or securities, or (ii) the next opening-price settlement procedures of a cash-settled security futures available opening price of the appear to be necessary to satisfy Section product overlying that security must underlying security or securities. 6(h)(3)(H) of the Exchange Act 169 that reflect a price of the underlying security listing standards for security futures taken from its most recent regular 172 See CBOE Letter, CME Letter, and SIG Letter. products must require that trading in a trading session. The proposed rule also See also OCC Letter (urging the Commissions to withdraw this aspect of the proposal, or at a provided that national securities minimum, modify it to allow the final settlement 166 See CME Letter. exchanges and national securities 167 value to be based on the next opening). One commenter believed that the SEC and the 173 CFTC should expand on the examples of the types associations could request exemptions See CBOE Letter, CME Letter, and SIG Letter. of reasons why national securities exchanges and from the settlement price provisions See also FIA/SIA Steering Committee Letter (stating associations could impose additional trading halts from the SEC on a case-by-case basis. that the Commissions’ proposed requirement is provided in the footnotes of the Proposing Release inconsistent with existing market practice and rules Although one commenter supported governing a broad range of listed stock index to include order imbalances. See NYSE Letter. As 171 noted above, the rule being adopted today is not this aspect of the proposal, four products) and OCC By-Laws, Article XII, Section 5 designed to preclude a market trading security (allowing OCC to fix the final settlement price for futures products from halting trading for other 170 The liquidity constraints faced by the security futures products using next opening prices appropriate reasons. Therefore, a national securities securities markets due to unwinding programs used of the underlying securities, as well as look-back exchange or national securities association would in closing-price settlement procedures were pricing). be free to impose additional restrictions on trading discussed by the SEC staff in its report on the 174 See OCC Letter. that are not required by this rule. market decline on November 15, 1991. See SEC 175 See FIA/SIA Steering Committee Letter. 168 See CBOE Letter, CBOT Letter, and NYSE Division of Market Regulation, Trading Analysis of 176 See CBOE Letter, CME Letter, FIA/SIA Letter. November 15, 1991 (October 1992). Steering Committee Letter, OCC Letter, and SIG 169 15 U.S.C. 78f(h)(3)(H). 171 See CBOT Letter. Letter.

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As discussed earlier, the SEC agrees a final settlement price for such security when there is a need to adjust positions with the commenters’ view that the futures product. before an expiration.183 Given the rarity proposed rule could have resulted in an The SEC believes that in the absence of such situations and that the unwanted and unwarranted de-linking of such a provision, confusion could significant underpinning for imposing of hedging positions if it mandated look- arise if securities underlying a security news pending regulatory halts is to back pricing procedures for security futures product failed to trade on an promote investor protection and fair and futures products. The SEC believes that expiration Friday and the market orderly markets, the SEC believes that, the adopted rule will provide national trading the security futures product and to the extent that there is pending news securities exchanges and national its clearing agency had different rules that could impact an investor’s decision securities associations with some determining a final settlement price. and to the extent that single-stock discretion to implement this general Moreover, this provision should make futures are surrogates for the underlying rule without dictating how the security futures products that trade on security, there is a need for a provision settlement price is derived for a security different markets more fungible, because requiring that trading in a security futures product. The SEC further notes a single clearing agency will be able to futures product be halted at all times that the final rule adopted today is harmonize procedures across different that a regulatory halt has been instituted consistent with OCC rules that allow for markets for determining alternate for the underlying security or securities, look-back pricing in certain settlement prices. with certain limits for narrow-based circumstances. In addition, adopted SEC Rule 6h– security index futures. SEC Rule 6h– 1(c)(1) and (c)(2) requires the trading on 1(c)(1) and (2), which concern In addition, one commenter indicated security futures products based on a that problems could arise if an exchange regulatory halts, will benefit current and single security to be halted at all times potential shareholders by providing an or association that trades a security that a regulatory halt has been instituted futures product and the registered opportunity for material information for the underlying security or, if based about the underlying security or clearing agency through which it clears on a narrow-based security index, to be such product had different rules for the securities to be disseminated to the halted at all times that a regulatory halt public. Since pending news may have a determination of an alternate settlement has been instituted for one or more 177 significant effect on trading, the SEC price. For example, a national underlying securities that constitute 50 securities exchange or national believes that all investors should have percent or more of the market an opportunity to learn of and react to securities association wishing to use capitalization of the narrow-based OCC clearing services for security material information in order to make security index. The SEC believes that informed investment judgments.184 futures must enter into a clearing the adopted rule should help preserve agreement with OCC in which both Accordingly, news pending regulatory the investor protection and market halts should foster public confidence in parties agree that security futures will integrity goals of regulatory halt be cleared by OCC in accordance with the market and promote the integrity of procedures in the securities markets. the market place. Furthermore, the SEC OCC’s by-laws and rules, which The SEC believes that the close currently give OCC the final authority to believes that requiring an exchange or relationship between the underlying association to halt trading on a security determine final settlement prices in security or securities and the pricing of certain circumstances.178 This futures product at all times that a the overlying security futures product regulatory halt has been instituted for commenter recommended that the generally justifies a regulatory halt of clearing agency be permitted, under its the underlying security or securities the security futures product at all times should contribute to the maintenance of rules, to determine the final settlement that a regulatory halt has been instituted price of the security futures product.179 an efficient market. for the underlying security or In addition, the SEC believes that In light of the comments, the final rule 180 securities. regulatory halts in the trading of has been amended. Pursuant to adopted With respect to regulatory halts due to security futures products due to the SEC Rule 6h–1(b)(3), if a clearing agency pending news, the SEC does not agree operation of circuit breakers should determines, pursuant to its rules, that with two commenters who questioned further protect investors and the such final settlement price is not the absolute requirement that trading in markets by mitigating potential systemic consistent with the protection of a security futures product must be stress during a historic market decline investors and the public interest, taking halted during a news pending halt in and allow for the reestablishment of an into account such factors as fairness to the underlying security.181 These equilibrium between buying and selling buyers and sellers of the affected commenters recommended providing interests in an orderly fashion. The SEC security futures product, the exchanges with discretion to impose a generally believes that pre-determined, maintenance of a fair and orderly trading halt when there is a news coordinated, cross-market operations of market in such security futures product, pending trading halt in the underlying circuit breakers would effectively and consistency of interpretation and security.182 Specifically, one commenter address market declines that threaten to practice, the clearing agency has the believed that this discretion is necessary result in ad hoc and potentially authority to determine, under its rules, to allow trading in a security futures product when the underlying stock is destabilizing market closings. The SEC does not agree with one 177 halted in certain circumstances, such as See OCC Letter. commenter’s recommendation that the 178 See supra note 60 and accompanying text. SEC should provide exchanges with 179 See OCC Letter; see also CBOE Letter 180 The trading halt provision of adopted SEC (recommending that security futures products have Rule 6h–1(c) would not be exclusive. The adopted latitude in implementing coordinated the proviso that the clearing corporation rules have rule is not designed to preclude a market trading circuit breaker procedures and precedence for determining the index value at security futures products from halting trading for flexibility in imposing this requirement expiration during a trading halt in the underlying other appropriate reasons, such as operational on security futures products where the security); FIA/SIA Steering Committee Letter difficulties being experienced by the market or its (urging the Commissions not to require exchanges automated systems or concerns over clearance and and associations to adopt rules addressing the settlement operations. 183 See CBOE Letter. determination of fallback security futures final 181 See CBOE Letter and FIA/SIA Steering 184 See Securities Exchange Act Release No. settlement prices when opening prices are not Committee Letter. 32890 (September 14, 1993), 58 FR 48916 readily available). 182 Id. (September 20, 1993).

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principal trading venues for the imposition of a trading halt. The SEC exchanges and national securities underlying securities (or for a subset of also believes that designating the listing associations trading security futures securities in the case of narrow-based market as the venue for the purpose of product are reasonably equipped to indexes) are in foreign markets.185 The applying the rule provides for ease of handle market demand and pending SEC believes that it is important to use and application and prevents material news. require the application of cross-market national securities exchanges or Furthermore, in the final rule adopted circuit breaker regulatory halt national securities associations from by the SEC, the rule permits the SEC to procedures to security futures products having to determine the primary market grant an exemption with respect to any and that such a requirement is necessary for each underlying security. Further, provision of SEC Rule 6h–1 based on its to satisfy the requirements of Section the SEC believes that the listing market existing exemptive authority pursuant 6(h)(3)(K) of the Exchange Act.186 If should represent sufficient liquidity that to Section 36 of the Exchange Act. Any cross-market circuit breaker regulatory imposing a trading halt on a security exemption would require a finding that halt procedures were not applied to the futures product when the listing market the action is necessary or appropriate in security futures products, the lack of for the underlying security imposes a the public interest and consistent with such procedures would undermine the trading halt furthers the purposes of the protection of investors. The SEC use of trading halts in the underlying Section 6(h)(3)(K) of the Exchange believes that the exemption provided for securities. Furthermore, national Act.189 in SEC Rule 6h–1(d)191 would benefit securities exchanges and national With respect to narrow-based security national securities exchanges and securities associations do have the indexes, the SEC believes that trading national securities associations by flexibility under the rule to impose should be halted when a trading halt providing them with flexibility in trading halt requirements where the has been instituted for a sufficiently responding to changing market underlying security is listed solely on a large portion of an index in order to conditions, as well as provide the SEC foreign market. prevent continued trading of the with continued oversight over the In addition, to be effective, circuit security futures product from becoming respondents by granting an exemption breakers have to be coordinated across a means to improperly circumvent when it is necessary or appropriate in stock, stock index futures, and options regulatory trading halts in the the public interest and is consistent markets in order to prevent intermarket underlying securities. If trading in only with the protection of investors. problems of the kind experienced in one component security is halted, B.Costs of SEC Rule 6h–1 under the October 1987.187 Since the markets continued trading in a security future Exchange Act currently coordinate regulatory halts based on an index in which such a between the listing market for the security represents a substantial portion The SEC estimates that there would underlying security and other markets of the index value could also undermine be 17 respondents to the rule: 9 that trade the underlying security or any the trading halt in the underlying currently registered national securities related security in order to promote security. The SEC believes that trading exchanges, 1 national securities investor protection and fair and orderly halt procedures also would not be association (the NASD) that operates a markets, SEC Rule 6h–1(c)(1) and (2) coordinated, as contemplated by Section securities market (Nasdaq), and an should help ensure such coordination 6(h)(3)(K) of the Exchange Act,190 if the estimated 7 futures markets that are and effectiveness through the use of security futures product based on an expected to register as Security Futures regulatory halts in the markets trading index continued to trade while investors Product Exchanges. security futures products. were precluded from trading some or all National securities exchanges and Although the SEC understands the of the underlying securities. Moreover, national securities associations may file concern raised by one commenter the SEC believes that continued trading proposed rule changes pursuant to regarding continued trading of a in the security futures product under Section 19(b) of the Exchange Act 192 to security futures product when the these circumstances could undercut key implement SEC Rule 6h–1.193 However, underlying security has halted trading if provisions in the securities laws the SEC notes that even in the absence the listing market is not the primary designed to protect investors and of SEC Rule 6h–1 each of the market,188 the SEC believes that, due to promote the fair and orderly operation respondents would have to file one or the contractual relationship between the of the markets. more proposed rule changes to adopt issuer and the listing market, the listing Accordingly, the SEC believes that a listing standards for security futures market has a direct and ongoing general practice whereby trading is products to trade security futures relationship with the issuer and is, halted for the security futures product products pursuant to the Exchange Act, consequently, in the best position to be when investors lack access to current as amended by the CFMA. informed promptly by the issuer that pricing information in the primary Further, under Rule 17a–1 of the pending news would require the market for the underlying security Exchange Act,194 a national securities should contribute to the maintenance of exchange or national securities 185 See CME Letter. fair and orderly markets. Moreover, the association is required to retain records 186 15 U.S.C. 78f(h)(3)(K). SEC believes that this coordination of of the collection of information for at 187 In response to the events of October 19, 1987, trading halts by SEC Rule 6h–1(c)(1) and when the Dow Jones Industrial Average (‘‘DJIA’’) 191 sustained a one-day decline of 508 points (22.6%), (2) would generally benefit investors The SEC may grant an exemption from the the nation’s securities and futures markets in 1988 and the market by providing fewer rule, either unconditionally or on specified terms adopted rules that provide for coordinated, cross- and conditions, if it finds that such exemption is opportunities for abuse and necessary or appropriate in the public interest and market trading halts in all equity and equity- manipulation. SEC Rule 6h–1(c)(1) and derivative markets following specified declines in consistent with the protection of investors. See the DJIA. See Circuit Breaker Report, supra note 68. (2) also would further increase investor Section 36 of the Exchange Act, 15 U.S.C. 78mm. See also Securities Exchange Act Release No. 38080 confidence in the stability of the 192 15 U.S.C. 78s(b). (December 23, 1996), 61 FR 69126 (December 31, markets by assuring investors and the 193 The SEC has adopted Rule 19b–7, which 1996) (citing the SEC’s desire to have coordinated would direct Security Futures Product Exchanges to mechanisms across these markets to deal with public that the national securities file proposed rule changes on Form 19b–7. See potential volatility that may develop during periods Securities Exchange Act Release No. 44692, supra of extreme downward volatility). 189 15 U.S.C. 78f(h)(3)(K). note. 188 See CME Letter. 190 15 U.S.C. 78f(h)(3)(K). 194 17 CFR 240.17a–1.

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least 5 years, with the first 2 years in an narrow-based security indexes to trigger there is an adequate opportunity for easily accessible place. However, Rule a regulatory trading halt, the SEC does information about a security to be 17a–1 requires a Security Futures not believe that the additional costs that disseminated to the public. The SEC Product Exchange to retain only those may be incurred will be substantial. does not believe that it would be records relating to persons, accounts, Similarly, with respect to the costs in consistent with the protection of agreements, contracts, and transactions developing or adapting existing systems investors to permit investors, including involving security futures products.195 to monitor when listing markets retail investors, to trade a surrogate for The SEC believes that respondents institute regulatory halts for the security a security when trading is halted in that would not incur any additional capital or securities, as applicable, underlying security. By adopting this rule, the SEC or start-up costs beyond the paperwork the security futures product, the SEC seeks to maintain and preserve the costs, nor any additional operational or believes that these costs should not be integrity of this mechanism so that the maintenance costs, to comply with the substantial in light of the fact that the trading of security futures products will collection of information requirements majority of affected markets already not be used as a tool to circumvent the under SEC Rule 6h–1.196 As discussed have systems in place to monitor institution of regulatory halts. Moreover, above, the paperwork burden for each regulatory halts. For instance, the SEC the SEC believes that the purpose of respondent to comply with the new rule notes that 9 of the estimated 17 halting trading in the underlying will be $1,280, resulting in a total cost respondents are already required to security would be frustrated if market for the 17 respondents of $21,760. provide notification of regulatory halts participants could circumvent this halt As mentioned earlier, adopted SEC since they are participants of the by trading during the halt in the related Rule 6h–1(a) defines the terms ‘‘opening Consolidated Tape Association Plan security futures product.200 price,’’ ‘‘regular trading session,’’ and (‘‘CTA Plan’’)197 and thus, should Another commenter believed that the ‘‘regulatory halt.’’ The definitions of the already have systems in place to SEC’s proposal to require a trading halt relevant terms impose no costs on the monitor each other of regulatory halts in a narrow-based security index future respondents. being instituted. The SEC also believes when a security or securities that SEC Rule 6h–1 also requires that each of the remaining respondents constitute 30 percent or more of the respondents that choose to trade will have to develop a similar system to market capitalization of the index are security futures products to develop a monitor when regulatory halts have subject to a trading halt was too low a system for determining the settlement been instituted for the underlying threshold to justify the disruption that price of a cash-settled security futures security. However, any costs that will be it would inflict upon the futures product to fairly reflect the opening incurred to establish such a system arise market.201 Another commenter price of the underlying security. from the requirements of the Exchange recommended providing exchanges However, because respondents to the Act, as amended by the CFMA, to with greater discretion to decide adopted rule currently have systems in coordinate trading halts.198 The rule whether to impose or maintain a trading place to determine opening prices, the adopted today merely clarifies the halt.202 This commenter also believed SEC believes that respondents requirement imposed by the Exchange that because not all indexes underlying complying with the settlement Act, as amended by the CFMA. security futures products may be provisions of SEC Rule 6h–1 would only One commenter believed that the capitalization weighted, it may be incur minimal operational or requirement to halt trading in single- difficult for exchanges to determine on maintenance costs to reconfigure their stock futures when trading in the a real-time basis when securities current settlement procedures to fairly underlying security is halted was overly comprising 30 percent of the market reflect the opening price of the broad to satisfy the requirement that capitalization of a price-weighted or underlying security. procedures be put in place to coordinate equal dollar weighted index are halted. In addition, in order to comply with trading halts.199 This commenter Similarly, one of the commenters SEC Rule 6h–1(c)(1) and (2), the SEC believed that this was overly broad and expressed a concern that, with respect believes that national securities burdensome in its application to retail to corporate news events, it may be exchanges and national securities investors for whom single-stock futures operationally difficult to determine on a associations may incur costs in might serve as the only available means real-time basis whether the threshold of developing or adapting existing systems for managing risk and that the SEC market capitalization has been to monitor when listing markets have should allow trading halt sessions crossed.203 instituted a regulatory halt for an during which investors with risk In response to the commenter’s underlying security of the security exposure to an underlying equity, which statement that the 30 percent market futures product. Similarly, costs may be has been halted, might have the capitalization test was too low and after incurred for system changes needed to opportunity to enter into single-stock consideration of the potential effects of calculate the market capitalization of an futures transactions with dealers. the proposed 30 percent trading halt underlying narrow-based security index In response, the SEC notes that the threshold, the adopted rule requires and when one or more of the underlying purpose of trading halts is to ensure that trading to be halted in a narrow-based securities that constitute 50 percent or security index futures product when more of the market capitalization of a 197 The CTA Plan is a joint industry plan that component securities representing 50 narrow-based security index are subject governs the consolidated transaction reporting percent or more of the market to a regulatory halt. The commenters system. Parties to the CTA Plan are as follows: the capitalization of that narrow-based American Stock Exchange LLC, Boston Stock did not provide the SEC with actual Exchange, Inc., Chicago Board Options Exchange, estimates of the costs they would incur Inc., Chicago Stock Exchange, Inc., Cincinnati Stock 200 The SEC’s rule does not preclude a market to institute such a system. To the extent Exchange, Inc., National Association of Securities trading security futures products from halting that systems need to be developed to Dealers, Inc., New York Stock Exchange, Inc., trading for other appropriate reasons, such as Pacific Exchange, Inc., and Philadelphia Stock operational difficulties being experienced by the determine the market capitalization of Exchange, Inc. See CTA Plan (Second Restatement), market or its automated systems or concerns over Section III (a). clearance and settlement operations. 195 See 15 U.S.C. 78q(b)(4)(B). 198 Section 6(h)(3)(K) of the Exchange Act, 15 201 See CBOT Letter. 196 See Paperwork Reduction Act discussion at U.S.C. 78f(h)(3)(K). 202 See CBOE Letter. Section III. 199 See Students Letter. 203 See CME Letter.

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security index are subject to a regulatory calculating the weight of the index is security futures product to use look- halt.204 The SEC believes that one of the similar to an existing standard used to back or next opening pricing procedures major economic benefits that market calculate trigger points for circuit to derive a final settlement price for the participants derive from the trading of breaker operations.205 Consequently, the security futures product. However, if a futures on narrow-based security SEC chose to apply a similar method in clearing agency determines, pursuant to indexes is the ability to hedge positions implementing regulatory halts to its rules, that such final settlement price containing the securities underlying the narrow-based security index futures is not consistent with the protection of indexes, thereby reducing the risk of product. Furthermore, in specifying investors and the public interest, taking holding positions in those securities. market capitalization as the method for into account such factors as fairness to For traders using a narrow-based weighing an index, the rule provides buyers and sellers of the affected security index future to hedge a position clarity and uniformity for all security futures product, the containing the component index respondents to utilize in implementing maintenance of a fair and orderly securities, trading halts in certain of regulatory halts in security futures market in such security futures product, those component securities necessarily products based on narrow-based and consistency of interpretation and will introduce basis risk because the security indexes. If the rule allowed for practice, the clearing agency has the one-to-one relationship between the different methods of weighing an index authority to determine, under its rules, cash portfolio of securities and the for purposes of imposing a regulatory a final settlement price for such security narrow-based index future is disrupted. halt in the trading of a security futures futures product. The SEC believes that the proposed 30 product, the SEC believes that the The SEC does not believe that these percent threshold is too low because it trading of security futures products may provisions will impose any burden on could unnecessarily disrupt hedge be more susceptible to becoming a competition not necessary or positions involving futures on narrow- means of circumventing regulatory halts appropriate in furtherance of the based security indexes that may still be in the underlying securities. purposes of the Exchange Act. The rule substantially performing their intended adopted today codifies what is general risk-shifting function when trading is V. Consideration of the Burden on Competition, and Promotion of industry practice for other cash-settled halted in a limited number of the derivative products. Thus, even in the index’s component securities. The SEC Efficiency, Competition, and Capital Formation absence of the rule, it is likely that the believes that a 50 percent threshold markets would have opted for opening- SEC: Section 3(f) of the Exchange would better serve the requirement’s price rather than closing-price Act 206 requires the SEC, whenever it is intended purpose. In adopting a 50 procedures for security futures engaged in rulemaking and is required percent threshold, the SEC sought to products. In addition, under the final to consider or determine whether an balance the utility of maintaining rule, the market listing the security action is necessary or appropriate in the effective hedge positions with concerns futures product may use look-back or public interest, to consider whether the about circumventing the coordination next opening prices in instances where requirement by allowing trading in action will promote efficiency, the opening price of an underlying narrow-based index futures to continue competition, and capital formation. In security is not readily available. The when trading in a limited number of the addition, Section 23(a)(2) of the SEC believes that this flexibility will underlying securities is halted. The SEC Exchange Act 207 requires the SEC, assist national securities exchanges and believes that while it is not possible to when promulgating rules under the national securities associations in eliminate completely the risk involved Exchange Act, to consider the impact responding to market conditions when in hedging securities with a future on a any such rules would have on creating security futures products. narrow-based security index when competition. Section 23(a)(2) further Finally, the provision that allows a trading halts are instituted for certain of provides that the SEC may not adopt a clearing agency to determine a final those underlying securities, the 50 rule that would impose a burden on percent threshold reduces such risk. competition not necessary or settlement price in certain instances Therefore, the SEC is adopting a 50 appropriate in furtherance of the will remove an obstacle to the percent threshold because it appears to purposes of the Exchange Act. In the fungibility of security futures products, appropriately balance the goals of Proposing Release, the SEC requested which may in time lead to the same hedging utility with prevention of comment on these issues.208 security futures product being multiply improperly circumventing regulatory traded on more than one national A. Effects on Competition halts in the underlying securities. With securities exchange or national respect to the commenters’ concern 1. Settlement Procedures for Cash- securities association. The SEC believes regarding the potential difficulty in Settled Security Futures Products that the trading of security futures products on multiple markets promote calculating the market capitalization of SEC Rule 6h–1 provides that the final an index, especially for price-weighted competition. settlement price for each cash-settled The Commissions received one or equal dollar weighted indexes, for security futures product fairly reflect the purposes of instituting the regulatory comment on the proposed settlement opening price of the underlying security procedures that briefly addressed halt, the SEC notes that selecting market or securities. In the event that the capitalization as the method for competitive issues. This commenter opening price of an underlying security stated that exchange-listed security is not readily available, SEC Rule 6h–1 204 As with adopted SEC Rule 6h–1(c)(1), the futures products ‘‘will be subject to trading halt provision of adopted SEC Rule 6h– permits a national securities exchange intense competition’’ and urged the 1(c)(2) is not intended to be exclusive. The adopted or national securities association that Commissions to avoid rulemaking that rule is not designed to preclude a market trading lists and trades an overlying cash-settled security futures products based on narrow-based would lead to the sub-optimal design of security futures products and thereby security indexes from halting trading at a threshold 205 of less than 50 percent of the market capitalization See, e.g., CME Rule 4002.I., supra note 74. ‘‘unfairly tilt the competitive 206 15 U.S.C. 78c(f). of the index or for other appropriate reasons, such landscape.’’ 209 In light of the revisions as operational difficulties being experienced by the 207 15 U.S.C. 78w(a)(2). market or its automated systems or concerns over 208 The CFTC is not required to consider its clearance and settlement operations. proposed rules under these standards. 209 See CME Letter.

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made to the rule at the suggestion of the does not believe that it would be harmonize inconsistent settlement various commenters, the SEC believes consistent with the protection of practices. that the rule will further the anti- investors, particularly retail investors, to 2. Trading Halt Provisions manipulation principles of Section permit trading in a surrogate for a 6(h)(3)(H) of the Exchange Act 210 while security when trading is halted in that The Commissions received no giving the markets flexibility to security. Thus, the SEC believes it is comments directly addressing efficiency determine the characteristics of the essential, to ensure fair and orderly and capital formation aspects of the products that they wish to trade. In markets, to prevent a national securities trading halt provisions of SEC Rule addition, the SEC believes that the final exchange or national securities 6h–1. rule promotes competition by providing association from becoming a proxy Regulatory trading halts provide an national securities exchanges and market by trading an overlying security opportunity for investors to learn of, national securities associations with the futures product when trading is halted and react to, material information to ability to structure their security futures in an underlying security. Furthermore, make informed investment judgments. products so as to respond to competitive any potential restraint on competition In addition, they mitigate potential forces in the marketplace. caused by the rule’s trading halt systematic stress during severe market 2. Trading Halt Provisions provisions must be weighed against the declines and allow for the requirement that listing standards, The Commissions received two reestablishment of an equilibrium pursuant to Section 6(h)(3)(K) of the between buying and selling interests in comments that address the competitive Exchange Act,213 include procedures to aspects of the trading halt provisions of an orderly fashion. Accordingly, the coordinate trading halts with the market SEC believes that the trading halt the proposed rule. One commenter that trades the underlying security. stated that security futures product provisions of SEC Rule 6h–1, by ‘‘lookalikes’’ can trade in the 3. Conclusion requiring national securities exchanges unregulated upstairs market and in and national securities associations to The SEC finds that SEC Rule 6h–1 halt trading in security futures products foreign jurisdictions; to the extent that will promote competition and will not these other trading venues do not when trading is halted in the underlying impose any burden on competition not security or securities, will ultimately coordinate their trading halts, ‘‘there is necessary or appropriate in furtherance 211 improve efficiency and capital a potential competitive issue.’’ of the purposes of the Exchange Act. Likewise, the second commenter stated formation by creating a more fair and that sophisticated investors could create B. Effects on Efficiency and Capital orderly marketplace. a synthetic future in a halted stock.212 Formation VI. Final Regulatory Flexibility Act The SEC does not believe that the 1. Settlement Procedures for Cash- CFTC: The Regulatory Flexibility Act trading halt provisions will impose any Settled Security Futures Products burden on competition not necessary or (‘‘RFA’’) requires federal agencies, in appropriate in furtherance of the The SEC believes that the settlement promulgating rules, to consider the purposes of the Exchange Act. These provisions of SEC Rule 6h–1 will impact of those rules on small provisions do restrict competition, in improve efficiency and capital entities.215 The rules adopted herein the sense that they restrict the freedom formation. Although no commenters would affect designated contract and ability to trade a security futures addressed the efficiency and capital markets, registered derivatives product whenever trading is halted in formation aspects of the proposed rule transaction execution facilities and the underlying security or securities. directly, some of the commenters 214 derivatives clearing organizations. The The SEC believes, however, that such a noted that the proposed rule could have CFTC has previously established certain requirement is necessary and significant adverse monetary definitions of ‘‘small entities’’ to be used appropriate to further the purposes of consequences and, by implication, in evaluating the impact of its rules on the Exchange Act, which require that impact efficiency and capital formation. small entities in accordance with the listing standards for security futures Under the proposed rule, a security RFA. In its previous determinations, the products must include procedures to futures product would have been CFTC concluded that contract markets coordinate trading halts between the required to use look back prices in the are not small entities for the purpose of market that trades the security futures event that the opening price of the the RFA.216 The CFTC recently product, any market that trades any underlying security or securities were determined that registered derivatives underlying security, and other markets not readily available. These commenters transaction execution facilities and on which any related security is traded. noted that situations could arise where, derivatives clearing organizations are Specifically, in the absence of these due to some disruption to the markets, not small entities for purposes of the mandatory halts for the security futures a hedge consisting of a security futures RFA.217 The CFTC invited the public to product, the purpose of declaring the product and another security was comment on the Chairman’s halt in the underlying security or ‘‘mismatched.’’ This unhedged exposure certification that these rules would not securities would be frustrated, because could result in significant market losses. have a significant economic impact on the market for the overlying security The final rule reduces the possibility of a substantial number of small futures product could serve as a proxy such losses—and, thus, improves entities.218 The CFTC received no for the underlying market. efficiency and capital formation—by comments on the certification. Further, the SEC believes that trading allowing security futures products to halts promote fair competition by settle based on next opening prices if an 215 5 U.S.C. 601 et seq. providing an adequate opportunity for opening price for one or more security 216 See 47 FR 18618, 18619 (April 30, 1982) information about a security to be futures products is not readily available (discussing contract markets). disseminated to the public. The SEC and by allowing a registered clearing 217 See 66 FR 14262, 14268 (March 9, 2001) (discussing registered derivatives transaction agency, in certain circumstances, to execution facilities); 66 FR 45604, 45609 (August 210 15 U.S.C. 78f(h)(3)(H). 29, 2001) (discussing derivatives clearing 211 See CME Letter. 213 15 U.S.C. 78f(h)(3)(K). organizations). 212 See Students Letter. 214 See supra note 52. 218 See Proposing Release, 66 FR at 45918.

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SEC: Pursuant to Section 605(b) of the which a security opened for trading, on recent regular trading session for such Regulatory Flexibility Act,219 the SEC the primary market for the security. security or securities; or certified that the adopted rule would (k) Regular trading session of a (ii) The next available opening price not have a significant economic impact security means the normal hours for of the underlying security or securities. on a substantial number of small business of a national securities entities. This certification, including the exchange or national securities (3) Notwithstanding paragraphs (b)(1) reasons therefore, was attached to the association that lists the security. or (b)(2) of this section, if a derivatives Proposing Release No. 34–44743 (l) Regulatory halt means a delay, clearing organization registered under (August 24, 2001) as Appendix A. The halt, or suspension in the trading of a Section 5b of the Act or a clearing SEC solicited comments concerning the security, that is instituted by the agency exempt from registration impact on small entities and the national securities exchange or national pursuant to Section 5b(a)(2) of the Act, Regulatory Flexibility Act certification, securities association that lists the to which the final settlement price of a but received no comments. security, as a result of: security futures product is or would be reported determines, pursuant to its VII. Statutory Basis and Text of Rule (1) A determination that there are matters relating to the security or issuer rules, that such final settlement price is List of Subjects that have not been adequately disclosed not consistent with the protection of 17 CFR Part 41 to the public, or that there are regulatory customers and the public interest, problems relating to the security which taking into account such factors as Security futures products, Trading should be clarified before trading is fairness to buyers and sellers of the halts and Settlement provisions. permitted to continue; or affected security futures product, the 17 CFR Part 240 (2) The operation of circuit breaker maintenance of a fair and orderly procedures to halt or suspend trading in Securities. market in such security futures product, all equity securities trading on that and consistency of interpretation and Commodity Futures Trading national securities exchange or national practice, the clearing organization shall Commission securities association. have the authority to determine, under 3. Section 41.25 is amended by 17 CFR Chapter I its rules, a final settlement price for adding the text of paragraph (a)(2) and such security futures product. The CFTC has the authority to adopt adding paragraph (d) and by revising these rules pursuant to sections paragraph (b) to read as follows: * * * * * 2(a)(1)(D)(i)(VII), 2(a)(1)(D)(i)(X), and (d) The Commission may exempt from § 41.25 Additional conditions for trading 8a(5) of the CEA, 7 U.S.C. for security futures products. the provisions of paragraphs (a)(2) and 2(a)(1)(D)(i)(VII), 2(a)(1)(D)(i)(X), and (b) of this section, either 12(a)(5). (a) Common provisions. *** unconditionally or on specified terms (2) Regulatory trading halts. The rules For the reasons set out in the joint and conditions, any designated contract of a designated contract market or preamble, Title 17, Chapter I of the Code market or registered derivatives registered derivatives transaction of Federal Regulations is amended as transaction execution facility, if the execution facility that lists or trades one follows. or more security futures products must Commission determines that such include the following provisions: exemption is consistent with the public PART 41—SECURITY FUTURES interest and the protection of customers. PRODUCTS (i) Trading of a security futures product based on a single security shall An exemption granted pursuant to this 1. The authority citation for Part 41 is be halted at all times that a regulatory paragraph shall not operate as an revised to read as follows: halt has been instituted for the exemption from any Securities and Authority: Sections 206, 251 and 252, Pub. underlying security; and Exchange Commission rules. Any L. 106–554, 114 Stat. 2763; 7 U.S.C. 1a, 2, 6f, (ii) Trading of a security futures exemption that may be required from 6j, 7a–2, 12a; 15 U.S.C. 78(g)(2). product based on a narrow-based such rules must be obtained separately from the Securities and Exchange 2. Section 41.1 is amended by adding security index shall be halted at all Commission. paragraphs (j), (k) and (l) to read as times that a regulatory halt has been follows: instituted for one or more underlying Issued in Washington, DC on May 17, 2002 securities that constitute 50 percent or by the Commodity Futures Trading § 41.1 Definitions. more of the market capitalization of the Commission. narrow-based security index. For purposes of this part: Jean A. Webb, * * * * * * * * * * Secretary. (j) Opening price means the price at (b) Final settlement prices for security which a security opened for trading, or futures products. Securities and Exchange Commission (1) The final settlement price of a a price that fairly reflects the price at 17 CFR Chapter II which a security opened for trading, cash-settled security futures product during the regular trading session of the must fairly reflect the opening price of The SEC is adopting the rules national securities exchange or national the underlying security or securities; pursuant to its authority under securities association that lists the (2) Notwithstanding paragraph (b)(1) Exchange Act Sections 6, 9, 15A, 19, security. If the security is not listed on of this section, if an opening price for 23(a), and 36, 15 U.S.C. 78f, 78i, 78o– a national securities exchange or a one or more securities underlying a 3, 78s, 78w(a), and 78mm. national securities association, then security futures product is not readily opening price shall mean the price at available, the final settlement price of For the reasons set out in the joint which a security opened for trading, or the security futures product shall fairly preamble, Title 17, Chapter II, part 240 a price that fairly reflects the price at reflect: of the Code of Federal Regulations is (i) The price of the underlying amended as follows. 219 5 U.S.C. 605(b). security or securities during the most

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PART 240—GENERAL RULES AND the security futures product shall fairly By the Securities and Exchange REGULATIONS, SECURITIES reflect: Commission. EXCHANGE ACT OF 1934 (i) The price of the underlying Dated: May 17, 2002. security or securities during the most Margaret H. McFarland, 1. The authority citation for part 240 recent regular trading session for such Deputy Secretary. continues to read, in part, as follows: security or securities; or Authority: 15 U.S.C. 77c, 77d, 77g, 77j, (ii) The next available opening price Note: Appendix A to the preamble will not appear in the Code of Federal Regulations. 77s, 77z–2, 77z–3, 77eee, 77ggg, 77nnn, of the underlying security or securities. 77sss, 77ttt, 78c, 78d, 78e, 78f, 78g, 78i, 78j, (3) Notwithstanding paragraph (b)(1) Appendix A 78j–1, 78k, 78k–1, 78l, 78m, 78n, 78o, 78p, or (b)(2) of this section, if a clearing 78q, 78s, 78u–5, 78w, 78x, 78ll, 78mm, 79q, agency registered under Section 17A of Relevant Provisions of the Agreement 79t, 80a–20, 80a–23, 80a–29, 80a–37, 80b–3, Among 80b–4 and 80b–11, unless otherwise noted. the Act (15 U.S.C. 78q–1), or exempt from registration pursuant to Section American Stock Exchange LLC, Boston * * * * * 17A(b)(7) of the Act (15 U.S.C. 78q– Stock Exchange, Incorporated, Chicago Board 2. Section 240.6h–1 is added to read 1(b)(7)), to which the final settlement Options Exchange, Incorporated, Chicago as follows: price of a security futures product is or Stock Exchange, Incorporated, Cincinnati would be reported determines, pursuant Stock Exchange, Incorporated, International § 240.6h–1 Settlement and regulatory halt Securities Exchange LLC, National requirements for security futures products. to its rules, that such final settlement Association of Securities Dealers, Inc., New (a) For the purposes of this section: price is not consistent with the York Stock Exchange, Inc., Pacific Exchange, (1) Opening price means the price at protection of investors and the public Inc., Philadelphia Stock Exchange, Inc. which a security opened for trading, or interest, taking into account such factors (collectively, ‘‘ISG/SROs’’) as of [the date of a price that fairly reflects the price at as fairness to buyers and sellers of the Release]. which a security opened for trading, affected security futures product, the * * * * * during the regular trading session of the maintenance of a fair and orderly market in such security futures product, Section 1. Intermarket Surveillance Group national securities exchange or national (‘‘ISG’’) securities association that lists the and consistency of interpretation and security. If the security is not listed on practice, the clearing agency shall have (a)(i) The Intermarket Surveillance Group the authority to determine, under its (‘‘ISG’’) shall have as its purposes: (a) the a national securities exchange or a coordination and development of programs national securities association, then rules, a final settlement price for such and procedures designed to assist in opening price shall mean the price at security futures product. identifying possible fraudulent and which a security opened for trading, or (c) Regulatory trading halts. The rules manipulative acts and practices across a price that fairly reflects the price at of a national securities exchange or markets, particularly, between markets which which a security opened for trading, on national securities association registered trade the same or related securities and the primary market for the security. pursuant to Section 15A(a) of the Act between markets which trade equity (2) Regular trading session of a (15 U.S.C. 78o–3(a)) that lists or trades securities and options on an index in which security means the normal hours for one or more security futures products such securities are included, (b) the routine must include the following provisions: exchange of Market Surveillance Reports, as business of a national securities that term is defined in Section 2(e), among exchange or national securities (1) Trading of a security futures ISG/SROs which is appropriate to the association that lists the security. product based on a single security shall performance of adequate market surveillance, (3) Regulatory halt means a delay, be halted at all times that a regulatory and (c) the exchange of information, upon halt, or suspension in the trading of a halt has been instituted for the request, among ISG/SROs which is security, that is instituted by the underlying security; and appropriate to the requesting ISG/SRO in the national securities exchange or national (2) Trading of a security futures discharge of its regulatory responsibilities securities association that lists the product based on a narrow-based under the Act to enforce compliance by its security, as a result of: security index shall be halted at all members and persons associated with its members with its rules. Each of the nine ISG/ (i) A determination that there are times that a regulatory halt has been SROs will appoint form time to time one of matters relating to the security or issuer instituted for one or more underlying its executive officers responsible for market that have not been adequately disclosed securities that constitute 50 percent or surveillance to serve as its Principal to the public, or that there are regulatory more of the market capitalization of the Representative on the ISG. Each Principal problems relating to the security which narrow-based security index. Representative at any time appointed by an should be clarified before trading is (d) The Commission may exempt from ISG/SRO shall serve as a member of ISG until permitted to continue; or the requirements of this section, either such appointing ISG/SRO shall appoint a (ii) The operation of circuit breaker unconditionally or on specified terms successor, such successor appointment to be procedures to halt or suspend trading in and conditions, any national securities evidenced by a written notice delivered by the appointing ISG/SRO to each of the other all equity securities trading on that exchange or national securities ISG/SROs. national securities exchange or national association, if the Commission (a)(ii) An ‘‘ISG affiliate’’ is a contract securities association. determines that such exemption is market or foreign self-regulatory organization (b) Final settlement prices for security necessary or appropriate in the public which shall have such privileges and futures products. interest and consistent with the obligations as are set forth herein. A contract (1) The final settlement price of a protection of investors. An exemption market or foreign self-regulatory organization cash-settled security futures product granted pursuant to this paragraph shall shall become an ISG Affiliate if: (a) it is so must fairly reflect the opening price of not operate as an exemption from any approved by the unanimous vote of all ISG/ the underlying security or securities. Commodity Futures Trading SROs in attendance at a meeting of the ISG, and (b) the principal executive officer of the (2) Notwithstanding paragraph (b)(1) Commission rules. Any exemption that contract market or foreign self-regulatory of this section, if an opening price for may be required from such rules must organization so approved agrees in writing in one or more securities underlying a be obtained separately from the a form approved by the ISG/SROs that the security futures product is not readily Commodity Futures Trading organization accepts the privileges and available, the final settlement price of Commission. obligations of an ISG Affiliate. (Such a

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writing is hereinafter referred to as an ISG/SRO. In addition, an ISG/SRO may ask security, an option on a security, a currency ‘‘Affiliate Agreement.’’) another ISG/SRO to provide it with option or any other derivative or underlying An ISG Affiliate shall appoint an Affiliate information or documents relating to an instrument traded through the facilities of the Representative to the ISG who shall be one investigation or a disciplinary action by the ISG/SRO, or (2) relating to a member of an of the executive officers of the ISG Affiliate requested ISG/SRO against any of its ISG Affiliate or the ISG/SRO (including, but responsible for market surveillance. The members, member organizations or persons not limited to, information or documents Affiliate Representative shall select one associated with its members or member concerning the identity, trading activity and member form the ISG Affiliate staff to serve organizations. Upon receipt of such a request, positions of the ISG/SRO’s members or as an alternate for, and under the direction the requested ISG/SRO shall obtain such customers of the ISG/SRO’s members). Upon of, the Affiliate Representative. The alternate information or documents concerning receipt of such a request, the ISG/SRO shall shall be generally familiar with market disciplinary actions from its own records and use its best efforts in accordance with its surveillance techniques and procedures. shall provide such information or documents rules to obtain such information from its own * * * * * to the requesting ISG/SRO. records or from its members, and, to the (c) From time to time, an ISG/SRO may ask extent not inconsistent with its rules or with Section 2. Sharing of Information and an ISG Affiliate to provide it with applicable law, provide any information or Confidentiality information or documents: (1) Relating to a documents so gathered to the requesting ISG security, an option on a security, a currency (a) Attached hereto as Exhibit A is an Affiliate. In addition, an ISG Affiliate may executed copy of the Agreement between option, a futures contract, an option on a futures contract or any other derivative or ask ISG/SRO to provide it with information SIAC (‘‘Information Processor’’) and the ISG or documents relating to the disposition of a Participants, including the Letter Agreement underlying instrument traded through the facilities of the ISG Affiliate, or (2) relating disciplinary action taken by the ISG/SRO amending the Agreement (the ‘‘Service against any of its members, member Agreement’’), providing for the development to a member of an ISG/SRO or the ISG organizations or persons associated with its and operation of a Central Collection and Affiliate (including, but not limited to, members or member organizations. Upon Reporting System. As provided in the Service information or documents concerning the receipt of such a request, the ISG/SRO shall Agreement, each of the ISG/SROs will identity, trading activity and positions of the routinely receive Market Surveillance ISG Affiliate’s members or customers of the obtain such information or documents Reports relating to securities (as that term is ISG Affiliate’s members). An ISG Affiliate concerning disciplinary actions from its own defined in Section 3(a)(10) of the Act): shall agree in an Affiliate Agreement that, records and, to the extent not inconsistent (i) Which are traded on such receiving ISG/ upon receipt of such a request, it shall use with its rules or with applicable law, provide SRO, and its best efforts in accordance with its rules to such information or documents to the (ii) That are derived from (e.g., options) or obtain such information from its own records requesting ISG Affiliate. underlie (e.g., stocks) securities which are or from its members, and, to the extent not (e) Market Surveillance Reports as used in traded on such receiving ISG/SRO. inconsistent with its rules or with applicable this Agreement shall include: (b) From time to time, an ISG/SRO law, provide any information or documents (i) with respect to securities subject to last (‘‘requesting SRO’’) may ask another ISG/ so gathered to the requesting ISG/SRO. In sale reporting pursuant to CTA, CQ, OPRA or SRO (‘‘requested SRO’’) to provide it with addition, an ISG/SRO may ask an ISG NASDAQ Plans: quotations, last sale, information or documents: (i) relating to a Affiliate to provide it with information or clearing and other trading information security traded through the facilities of either documents relating to the disposition of a available pursuant to, or collected under, ISG/SRO or (ii) relating to a member or a disciplinary action taken by the ISG Affiliate such Plans; and post trade information former member of either ISG/SRO (including, against any of its members, member generated pursuant to the ITS Plan. but not limited to information or documents organizations or persons associated with its (ii) reports routinely collected by an ISG/ concerning the identity, trading activity and members or member organizations. An ISG SRO relating to program trading, i.e., the positions of the requested ISG/SRO’s Affiliate shall agree in an Affiliate Agreement purchase or sale of stocks that are part of a members, former members or customers of that, upon receipt of such a request, it shall coordinated trading strategy, or relating to the requested ISG/SRO’s members or former obtain such information or documents trades by its members and member members) for the purpose of enforcing concerning disciplinary actions from its own organizations which are not reported to the compliance with the provisions of the Act, or records and, to the extend not inconsistent Consolidated Tape. for other regulatory purposes. Upon receipt with its rules or with applicable law, provide (iii) reports relating to positions or of such a request, the requested ISG/SRO such information or documents to the exercises of securities. requesting ISG/SRO. shall obtain such information from its own * * * * * records or from its members and former (d) From time to time, an ISG Affiliate may members, and shall provide any information ask an ISG/SRO to provide it with [FR Doc. 02–12979 Filed 5–23–02; 8:45 am] or documents so gathered to the requesting information or documents: (1) Relating to a BILLING CODE 8010–01–P; 6391–01–P

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Part V

Environmental Protection Agency 40 CFR Part 80 Prohibition on Gasoline Containing Lead or Lead Additives for Highway Use: Fuel Inlet Restrictor Exemption for Motorcycles; Final Rule

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ENVIRONMENTAL PROTECTION government holidays. You can reach the The outside diameter of the terminal AGENCY Air Docket by telephone at (202) 260– end shall not be greater than 0.840 inch 7548 and by facsimile at (202) 260– (2.134 centimeters); (ii) * * *’’ 40 CFR Part 80 4400. We may charge a reasonable fee Section 80.24(b) contained additional [FRL–7215–3] for copying docket materials, as specifications to prevent misfueling of provided in 40 CFR part 2. motor vehicles with leaded gasoline. RIN 2060–AJ76 FOR FURTHER INFORMATION CONTACT: Section 80.24(b)(1) required that the Richard Babst at (202) 564–9473, filler inlet restrictor ‘‘pool’’ gasoline at Prohibition on Gasoline Containing the restrictor’s opening, if fueling is Lead or Lead Additives for Highway facsimile: (202) 565–2085, e-mail address: [email protected]. attempted when the spout of a pump Use: Fuel Inlet Restrictor Exemption nozzle is not inserted into the restrictor SUPPLEMENTARY INFORMATION: for Motorcycles opening. Historically, this had been AGENCY: Environmental Protection Regulated Entities accomplished by a spring-loaded door Agency (EPA). Entities potentially affected by this on the inside of the restrictor opening, which would be pushed open by ACTION: Final rule. rule are manufacturers of motorcycles. Regulated categories include: inserting the spout of an unleaded SUMMARY: Today’s rule exempts gasoline nozzle. Since leaded gasoline nozzle spouts were larger than the inlet motorcycles with emission control Category Examples of regu- devices that could be affected by the use lated entities restrictor opening, they did not fit into of leaded gasoline from having to be the restrictor opening or push open the equipped with gasoline tank filler inlet Industry ...... Manufacturers of mo- spring loaded door. Fueling with leaded torcycles restrictors. As before, motorcycles and gasoline would require the nozzle spout other motor vehicles without such to be positioned in front of the restrictor To determine whether you are opening and spring-loaded door. If emission control devices are not affected by this rule, you should required to be equipped with gasoline fueling were attempted in this manner, carefully examine the requirements in the gasoline would pool at the restrictor tank filler inlet restrictors. § 80.24(b) of title 40 of the Code of The Clean Air Act and corresponding opening and cause the nozzle’s Federal Regulations (‘‘CFR’’). If you automatic shut-off device to activate. EPA regulations prohibit gasoline have any questions regarding the containing lead or lead additives The related § 80.24(b)(2) exempted applicability of this action to a motorcycle manufacturers from meeting (leaded gasoline) as a motor vehicle fuel particular entity, consult the person after December 31, 1995. As a deterrent the ‘‘pooling’’ requirements of listed in the preceding FOR FURTHER to misfueling prior to that date, the EPA § 80.24(b)(1). INFORMATION CONTACT section. regulations required filler inlet Section 211(n) of the Clean Air Act, restrictors on motor vehicles equipped I. History of Fuel Tank Filler Restrictor 42 U.S.C. 7545(n), prohibits the with an emission control device that introduction of gasoline containing lead Prior to 1996, 40 CFR 80.24(b) or lead additives into commerce for use could be affected by the use of leaded contained size specifications for the gasoline, such as a catalytic converter. as a motor vehicle fuel after December gasoline tank filler inlet of motor 31, 1995. For consistency with this EPA retained that provision after 1995 vehicles equipped with an emission because the filler inlet restrictor, besides Clean Air Act prohibition, we published control device that would be in the Federal Register on February 2, being a deterrent to misfueling, has also significantly impaired by the use of been incorporated into the design of 1996 a direct final rule and associated leaded gasoline. The purpose of the tank notice of proposed rulemaking revising some vapor recovery gasoline nozzle filler inlet restriction was to allow the our regulations (61 FR 3832 and 61 FR spouts. Gasoline tank filler inlet insertion of an unleaded gasoline pump 3894, respectively). The direct final rule restrictors do not work well with most nozzle, but not a leaded gasoline pump became effective on March 4, 1996 motorcycle fuel tanks, especially the nozzle. Specifically, § 80.24(b) required except for language associated with saddle type of tank, because of their that a manufacturer of motor vehicles § 80.24(b). We withdrew language for shallow depth. A gasoline tank filler ‘‘equipped with an emission control that paragraph from the direct final rule inlet restrictor may cause gasoline device which the Administrator has on March 4, 1996 (61 FR 8221) due to spitback or spillage when a motorcycle determined will be significantly adverse comment, and subsequently is refueled, which increases evaporative impaired by the use of leaded gasoline’’ published revised language in the emissions. Today there is relatively shall ‘‘[m]anufacture such vehicle with Federal Register on June 6, 1996 (61 FR little risk of misfueling a motorcycle. each gasoline tank filler inlet having a 28763). Also, it is unlikely that a gasoline tank restriction which prevents the insertion In the February 2, 1996 direct final filler inlet restrictor on a motorcycle of a nozzle with a spout as described in rule and associated notice of proposed helps to control gasoline vapors when § 80.22(f)(1) and allows the insertion of rulemaking, we removed various the motorcycle is refueled. a nozzle with a spout as described in portions of § 80.24, including the DATES: This action will be effective June § 80.22(f)(2).’’ Section 80.22(f)(1) introductory text, and modified 24, 2002. specified that ‘‘[e]ach pump from which § 80.24(b) to make the size requirements ADDRESSES: Comments: All comments leaded gasoline is introduced into motor of the tank filler inlet applicable to all and materials relevant to today’s action vehicles shall be equipped with a nozzle new motor vehicles, and not just to have been placed in public docket A– spout having a terminal end with an those equipped with an emission 2001–17 at the following address: U.S. outside diameter of not less than 0.930 control device that would be Environmental Protection Agency inch (2.363 centimeters).’’ Section significantly impaired by the use of (EPA), Air Docket (6102), Room M– 80.22(f)(2) specified that ‘‘[e]ach pump leaded gasoline. We reasoned that 1500, 401 M Street, SW., Washington, from which unleaded gasoline is retaining the requirement for the tank DC 20460 (on the ground floor in introduced into motor vehicles shall be filler inlet restrictor would conform Waterside Mall) from 8:00 a.m. to 5:30 equipped with a nozzle spout which with the statutory ban prohibiting the p.m., Monday through Friday, except on meets the following specifications: (i) use of gasoline containing lead or lead

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additives as a motor vehicle fuel. The and published it in the June 6, 1996 recovery fueling systems in the early restrictor requirements for motor final rule with its previous applicability. 1990s and continuing with current Stage vehicles would match the nozzle size On October 31, 2001, we published a II vapor recovery systems, the fuel tank requirement for dispensing unleaded Direct Final Rule (66 FR 54955) and inlet restrictor of a car or truck has been gasoline, which we had retained in concurrent Notice of Proposed Rule (66 used as a guide, a seat and a pressure § 80.22(f)(2). Further, General Motors FR 54965) to 40 CFR 80.24(b) to exempt contact point for some vapor recovery and several gasoline pump nozzle motorcycles equipped with an emission gasoline nozzle spouts. manufacturers had requested that the control device that will be affected by For some vapor recovery fueling specification for the tank filler inlet size the use of leaded gasoline, such as a systems, the restrictor plate lines up the be retained so that automobile catalytic converter, from having to be nozzle and helps concentrate the equipment would continue to be equipped with a fuel tank inlet fugitive emissions for collection. compatible with Stage II vapor recovery restrictor. We received an adverse Without the restrictor plate, more pump nozzles. We simplified the comment, and on December 27, 2001 fugitive emissions would be released. withdrew the Direct Final Rule (66 FR The ‘‘balance’’ type of vapor recovery applicability language of § 80.24(b) to 66867) in order to address the comment system uses a boot to seal around the refer to all motor vehicles, instead of in today’s action based on the outside of the tank filler inlet tube. motor vehicles equipped with an concurrent Notice of Proposed Rule. While this system does not require the emission control device that would be The December 27, 2001 withdrawal of restrictor plate to help capture fugitive significantly impaired by the use of the direct final rule was inadvertently emissions, it requires the restrictor plate leaded gasoline, because we thought published in the Proposed Rule section to push against in order to activate an that all motor vehicles were of the Federal Register. The Office of interlock. An ‘‘emission’’ or ‘‘efficiency’’ manufactured with tank filler inlet the Federal Register is publishing control vapor recovery device does not restrictors at that time. We did not elsewhere in this issue of the Federal need the restrictor plate to control intend to broaden the applicability of Register a correction reclassifying the fugitive emissions. This device consists § 80.24(b). withdrawal as a Rule. of a cup, which has an outside diameter the same as the inside diameter of the In the February 2, 1996 direct final II. Why Are We Exempting fill hole, that is clipped to the spout. A rule and associated notice of proposed Motorcycles? rulemaking, we also removed similar type of vapor recovery system, §§ 80.24(b)(1) and 80.24(b)(2). We There are few, if any, offsetting the Marconi system, does not need the believed misfueling would be unlikely, environmental benefits to support the restrictor plate or the plastic cup.2 making the § 80.24(b)(1) ‘‘pooling’’ continued use of gasoline tank filler Most on-board vapor recovery safeguard against misfueling inlet restrictors in motorcycles equipped systems, which are required for light- unnecessary. Once we removed with emission control devices that duty vehicles and light-duty trucks but would be significantly impaired by the § 80.24(b)(1), it was appropriate for us to not for motorcycles, are also designed use of leaded gasoline. Today there is remove § 80.24(b)(2) as well, since around the restrictor plate. A seal is relatively little risk of misfueling a § 80.24(b)(2) exempted motorcycle needed between the pump nozzle and motorcycle. Gasoline tank filler inlet manufacturers from the requirements of the tank filler inlet tube to prevent restrictors were originally required to 80.24(b)(1). fugitive emissions from escaping. This prevent motor vehicles with an seal is normally located below the We received an adverse comment emission control device, such as a restrictor plate, and uses the restrictor from Harley Davidson, Inc. (Harley) on catalytic converter, from using leaded plate to line-up the nozzle with the seal. the revised language of 40 CFR 80.24(b) gasoline. Leaded gasoline can damage Fugitive emissions below the seal are in the February 2, 1996 direct final rule catalytic converters and certain other then diverted to a canister in the and proposed rule.1 In its comment, emission control devices. Significantly, vehicle.3 Harley stated that motorcycles generally leaded gasoline has now been banned We understand that gasoline tank do not use emission control devices that from use in all motor vehicles for over filler inlet restrictors do not work well would be significantly impaired by the six years and is generally no longer with most motorcycle fuel tanks, use of leaded gasoline (e.g., catalytic available for sale at gasoline filling especially the saddle type of tank, converters) and are therefore not stations. Also, it is unlikely that a because of their shallow depth. The use manufactured with tank filler inlet gasoline tank filler inlet restrictor on a of gasoline tank inlet restrictors in restrictors matching the requirements of motorcycle helps to control gasoline motorcycles may in fact contribute to the existing § 80.24(b). The February 2, vapors when the motorcycle is refueled. unnecessary releases of gasoline vapors 1996 direct final rule and associated Although a vapor recovery gasoline and emissions. Unlike a car or truck, notice of proposed rulemaking would nozzle, in conjunction with the gasoline motorcycles are typically fueled while have required these motorcycles to meet tank filler inlet restrictor, helps to the operator observes the tank fuel level, the fuel inlet size requirements of 40 control gasoline vapors and emissions similar to filling a small gasoline CFR 80.24(b), thereby causing when used to refuel most motor container typically used to refuel additional economic burden and vehicles, they are relatively ineffective lawnmowers and other small gasoline manufacturing complexity for Harley. when used to refuel motorcycles. powered equipment. However, the We did not intend or foresee that we During refueling of a car or truck, the restrictor plate obstructs the view of the would be expanding the applicability of fuel nozzle spout is inserted into the fill fuel level, and could contribute to § 80.24(b) by the revised applicability tube and through the filler neck inadvertent fuel overfill and spillage. If language. Because of this adverse restrictor plate. The fuel nozzle fueling with the ‘‘balance’’ type of vapor comment, we withdrew paragraph 40 automatically stops the flow of gasoline recovery nozzle, motorcycle operators CFR 80.24(b) from the direct final rule, when it senses a sufficiently high level generally pull back and hold the rubber of gasoline vapors below the restrictor boot to activate the interlock and allow 1 This comment can be found in docket no. A– plate, which indicates the fuel tank is 95–13 for the February 2, 1996 direct final rule and full. We understand that, beginning 2 Conversation with Catlow on April 3, 2001. proposed rule, and for the June 6, 1996 final rule. with the introduction of Stage I vapor 3 IBID.

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for better visibility, but that defeats the size and ‘‘pooling’’ specifications were inconvenience. Refueling is possible by vapor recovery system.4 Further, the required from the mid-1970s until 1996 holding the nozzle over the restrictor filler inlet restrictor may cause the for motor vehicles with emission control opening and letting the gasoline pour nozzle spout to be inserted deeper into devices, such a catalytic converters, that through the opening. This process might the motorcycle tank than otherwise could be damaged by the use of leaded take somewhat longer because the would be necessary, potentially causing gasoline. At that time, both leaded and fueling rate may need to be slowed to increased splash back from the shallow unleaded gasoline were generally prevent splashing of the fuel off of the tank. Besides causing excess gasoline available at gasoline filling stations.5 restrictor surface. Since motorcycles vapors and spitback through the The size and ‘‘pooling’’ specifications were already exempt from the ‘‘pooling’’ restrictor plate openings, this were intended to prevent the fueling of specification prior to 1996, the 1996 splashback could cause the pump those vehicles with leaded gasoline. regulatory change had no practical effect nozzle to prematurely stop the flow of Significantly, motorcycles have always on motorcycles. gasoline. The operator may have to been exempt from the ‘‘pooling’’ Even if a motorcycle owner wanted to reactivate the pump nozzle, possible specification. use leaded fuel, it is relatively hard to several times, before the tank is full. The size specification prevented find today. It is no longer generally These problems were not much of an leaded gasoline nozzles, which had a available at retail gasoline stations issue in the 1995 and earlier time frame, larger diameter than unleaded gasoline because the use of leaded fuel is banned because only relatively few motorcycles nozzles, from being inserted into the in motor vehicles. We estimate that only were equipped with catalytic fuel inlet restrictor opening. The 0.3 percent of the gasoline used in the converters, and thus, only relatively few ‘‘pooling’’ specification was typically United States today is leaded gasoline.7 required tank inlet restrictors. However, met by a spring loaded door covering It is used primarily in some aircraft a significant number of 2001 model year the fuel inlet opening, which could be engines and some race cars.8 Although motorcycles have been equipped with pushed open with an unleaded gasoline non-highway engines can use leaded catalytic converters. nozzle for normal fueling. But, if fueling gasoline, most do not. The non-highway III. Response to Comment were attempted with a leaded gasoline engines that can use both leaded or nozzle, the spring loaded door would An adverse comment was submitted unleaded gasoline use only unleaded remain closed and gasoline would pool jointly from representatives of the gasoline, and the other non-highway in the filler tube above the restrictor. multifamily rental industry: National engines that were designed to use The pooled gasoline would activate the Apartment Association, National Leased leaded gasoline (other than certain gas pump’s automatic cut-off device or Housing Association, and National racing or aircraft engines), such as some overflow onto the vehicle and ground. Multi Housing Council (herein referred old farm equipment, currently use Not only were motorcycles exempt from to collectively as ‘‘NAA’’). NAA unleaded gasoline mixed with a the ‘‘pooling’’ specification, but also expressed concern about environmental commercially available lead substitute very few motorcycles were required to 9 exposure to lead caused by potential additive. be equipped with the filler neck increased usage of leaded gasoline, and restrictor because most did not have 7 Based on the National Transportation Statistics raised four issues, which we will catalytic converters. 2000, Table 4–7, BTS01–01, Bureau of address separately. The specifications of the fuel inlet Transportation Statistics, for 1998, the aviation Issue 1: NAA objects to EPA’s component of non-highway gasoline was 351 proposed decision that would have the restrictor were changed in 1996 because million gallons, which is 10.7 percent of the total leaded gasoline was no longer permitted 3,284 million gallons non-highway gasoline. The practical effect of making it easier for racing component is considered negligible motorcycles to use leaded fuel, increase as a fuel for any motor vehicle and we no longer considered fueling with according to a conversation with the American their usage of leaded gasoline and Petroleum Institute, and a racing component was leaded gasoline to be a significant not broken out into a separate category in the BTS consequently increase lead emissions 6 into the environment. possibility. We retained the table. The BTS table also does not break marine specification for the ‘‘shell’’ of the engines into a separate category. Our contacts in the Fuel inlet restrictors together with fuel industry doubt that leaded gasoline is used by pooling specifications were required to restrictor so that vapor recovery marine engines, and we have no evidence of such prevent damage to emission control refueling nozzles and fuel inlets on the use. If we assume 351 million gallons is the aviation devices, such as catalytic converters, motor vehicles would remain and racing component combined (the racing compatible. However, we eliminated the component being negligible), and that aviation and installed on many motor vehicles to racing are the only applications using leaded reduce smog. Today’s action does not critical ‘‘pooling’’ specification. A filler gasoline, than leaded gasoline represents only 0.3 allow a motorcycle to use leaded inlet restrictor meeting today’s percent of the total 128 billion gallons of highway gasoline, nor does it make it more likely specification allows fueling with large and non-highway gasoline combined. 8 that a motorcycle will misfuel with diameter gasoline nozzles, such as the According to the Department of Energy, jet fuel, former leaded gasoline nozzles, which is a kerosene derivative of petroleum, leaded gasoline. The fact that there is no comprises 98.8 percent of aviation energy (BTU) suggestion or evidence that the large although it would be a minor demand in the United States. Aviation gasoline, number of motorcycles in the U.S. not which is consumed by aircraft equipped with 5 While both leaded and unleaded gasoline were reciprocating engines and which may contain lead, equipped with a fuel inlet restrictor are available at gasoline filling stations since the mid- comprises the remaining 1.2 percent of aviation being misfueled supports this 1970s, the availability of leaded gasoline gradually energy demand. (see Internet at http:// conclusion. diminished and became small by the early 1990s. www.eia.doe.gov/oiaf/aeo/supplement/ Fuel inlet restrictors have never This was likely due to the increasing dominance of sup_tran.pdf, Table 54) Also, not all race cars use prevented the use of leaded gasoline in highway vehicles requiring unleaded gasoline, the gasoline—some use nitromethane or methanol. increasing cost of producing and distributing the 9 Some non-highway applications need to use motorcycles. Fuel inlet restrictors with smaller volume of leaded gasoline, and our lead leaded gasoline or its equivalent. Non-highway phase-down program of the 1980s. engines built prior to the mid-1970s were designed 4 Also, for those motorcycles where the filler cap 6 61 FR 3832, February 2, 1996 (Direct Final to run on leaded gasoline. The use of unleaded is attached to the gas tank by a hinge, the rubber Rule); 61 FR 389461, February 2, 1996 (Notice of gasoline in many of those old engines could cause boot of a ‘‘balance’’ type of vapor recovery nozzle Proposed Rule); 61 FR 8221, March 4, 1996 (partial valve seat recession. However, the equivalent of would not seat correctly anyway, and the insertion withdrawal of the Direct Final Rule of February 2, leaded gasoline can be obtained from unleaded pressure required to compress the boot may damage 1996); 61 FR 28763, June 6, 1996 (Final Rule to gasoline by mixing it with a commercially available the gas cap, hinge, and tank finish. complete February 2, 1996 rulemaking). lead substitute additive, such as Millers VSP, Red

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One reason why the non-highway expensive than aviation fuels. In Today’s action is an ‘‘informal’’ or market (other than certain aviation and January 2002, racing gasolines in the notice-and-comment rulemaking. We racing engines) has switched to Washington D.C. area cost an average of published a notice of proposed unleaded gasoline and, thereby, made about $3 to $5 per gallon depending on rulemaking on October 31, 2001 leaded gas harder to find is the cost of the blend (especially depending on the soliciting public comment on the maintaining separate fuel distribution desired octane), and could be as high as proposed rule. We also published a systems for highway and non-highway $7 per gallon.11 companion direct final rule which applications. Maintaining an additional Issue 2: NAA claims that EPA’s would have gone into effect on tank and fuel pump for a small volume proposal is inconsistent with findings of December 31, 2001 had we not received of leaded gasoline at a retail gasoline the President’s Task Force on any adverse comment on the proposed station is generally not cost effective. Environmental Health Risks and Safety rule. Upon receiving adverse comment This is particularly true if the local non- to Children, report titled ‘‘Eliminating to the proposed rule we withdrew the highway consumer market can use Childhood Lead Poisoning: a Federal direct final rule. Today’s action unleaded highway gasoline instead. Strategy Targeting Lead Paint hazards. responds the adverse comment and Also leaded gasoline must be segregated NAA also claims the proposal is promulgates the Agency’s final rule. in dedicated storage and shipping tanks inconsistent with EPA’s regulatory Formal rulemaking under sections and must use dedicated transfer lines to mandate under other statutes to limit 556 and 557 of the Administrative prevent lead contamination of the exposure to lead. Although leaded Procedure Act is a trial-type procedure unleaded highway gasoline supply. gasoline has been prohibited for use in before an agency that is used very Another reason why the non-highway motor vehicles since 1995, NAA infrequently. The Clean Air Act does market (other than certain aviation and indicates that leaded gasoline remains not require formal or ‘‘on-the-record’’ racing engines) has switched to available for military, construction and rulemaking for today’s action. unleaded gasoline is that leaded agricultural use. gasoline causes corrosive lead Eliminating the fuel inlet requirement IV. Final EPA Action compound deposits in the engines and for motorcycles equipped with catalytic Today’s final rule revises 40 CFR lubricating oil. Consequently, using converters is not inconsistent with 80.24(b) to exempt motorcycles leaded gasoline requires more frequent longstanding efforts to reduce lead in equipped with an emission control oil changes and reduces engine and the environment. As discussed above, device that will be affected by the use exhaust system life. Even those engines fuel inlet restrictors together with of leaded gasoline, such as a catalytic designed to run on leaded gasoline can pooling specifications were required to converter, from having to be equipped use unleaded highway gasoline and reap prevent damage to emission control with a fuel tank inlet restrictor. the benefits of unleaded gasoline if it is devices, such as catalytic converters, mixed with a commercially available installed on many motor vehicles to V. Administrative Requirements lead substitute additive. Thus all non- reduce smog. Today’s action does not A. Executive Order 12866 road engines (except for certain racing allow a motorcycle to use leaded and aircraft engines) can use unleaded gasoline, nor does it make it more likely Under Executive Order 12866 (58 FR highway gasoline, although some may that a motorcycle will misfuel with 51735 (Oct. 4, 1993), the Agency must need to also use a lead substitute leaded gasoline. determine whether the regulatory action additive. Issue 3: NAA asked for copies of the is ‘‘significant’’ and therefore subject to A motorcycle owner, therefore, that risk assessments and the cost benefit OMB review and the requirements of wanted to use leaded gasoline would analysis conducted by EPA in support the Executive Order. The Order defines either have to go to an airport, a race of the proposed rule. ‘‘significant regulatory action’’ as one track or a racing supply center. Even if EPA does not believe that today’s that is likely to result in a rule that may: such an owner obtained leaded gasoline action will result in an increased risk of (1) Have an annual effect on the at one of these locations, the fuel would greater lead emissions into the economy of $100 million or more, or be specially formulated as aviation environment. EPA, therefore, did not adversely affect in a material way the gasoline or racing gasoline that may not conduct a risk assessment or a cost economy, a sector of the economy, be suitable for use in a highway benefit-analysis for today’s rule. Based productivity, competition, jobs, the motorcycle. on the facts discussed above and in the environment, public health or safety, or Finally, even if a motorcycle owner direct final rule, EPA has concluded State, local, or tribal governments or could find a leaded gasoline, it is that fuel inlet restrictors are not needed communities; unlikely that he or she would want to in motorcycles with emission control (2) Create a serious inconsistency or pay more for leaded gasoline than for devices and that the absence of a fuel otherwise interfere with an action taken cheaper unleaded gasoline that is inlet restrictor does not make it more or planned by another agency; conveniently available at retail gasoline likely that a motorcycle will be (3) Materially alter the budgetary stations. In January 2002, for example, misfueled with leaded gasoline. The fact impact of entitlement, grants, user fees, the price of aviation fuel at an airport in that there is no suggestion or evidence or loan programs or the rights and the Washington D.C. area was $2.65 per that the large number of motorcycles in 10 obligations of recipients thereof; or gallon. By comparison, the price of the U.S. not equipped with a fuel inlet unleaded gasoline at retail gasoline restrictor are being misfueled supports (4) Raise novel legal or policy issues stations in the same community during this conclusion. arising out of legal mandates, the that same time period was less than Issue 4: NAA suggested that the President’s priorities, or the principles $1.10. Racing gasolines are even more proposed rule go through a formal set forth in the Executive Order. rulemaking process in order to allow for It has been determined that this rule Line Lead Substitute, Superblend 12/Zero Lead is not a ‘‘significant regulatory action’’ 2000, and Valvemaster. public notice and comment period. 10 From conversation with aviation firm at under the terms of Executive Order Frederick Airport in Frederick Maryland on January 11 From conversation with racing firm in 12866 and is therefore not subject to 7, 2002. Gaithersburg, Maryland on January 7, 2002. OMB review.

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B. Paperwork Reduction Act existing Federal regulations. Today’s 1999), requires EPA to develop an This action does not impose any new rule, therefore, is not subject to the accountable process to ensure information collection burden under the requirements of sections 202 and 205 of ‘‘meaningful and timely input by State provisions of the Paperwork Reduction the UMRA. and local officials in the development of EPA has determined that this rule Act, 44 U.S.C. 3501 et seq., and regulatory policies that have federalism contains no regulatory requirements that therefore is not subject to these implications.’’ ‘‘Policies that have might significantly or uniquely affect requirements. federalism implications’’ is defined in small governments. As discussed above, the Executive Order to include C. Unfunded Mandates Reform Act the rule is a deregulatory action and regulations that have ‘‘substantial direct Title II of the Unfunded Mandates affects only motorcycle manufacturers. effects on the States, on the relationship Reform Act of 1995 (UMRA), Public D. Executive Order 13045: Protection of between the national government and Law 104–4, establishes requirements for Children From Environmental Health the States, or on the distribution of Federal agencies to assess the effects of Risks and Safety Risks power and responsibilities among the various levels of government.’’ their regulatory actions on State, local, Executive Order 13045, ‘‘Protection of and tribal governments and the private This rule does not have federalism Children from Environmental Health implications. It will not have substantial sector. Under section 202 of the UMRA, Risks and Safety Risks’’ (62 FR 19885, direct effects on the States, on the EPA generally must prepare a written Apr. 23, 1997) applies to any rule that: relationship between the national statement, including a cost-benefit (1) Is determined to be ‘‘economically government and the States or on the analysis, for proposed and final rules significant’’ as defined under Executive distribution of power and with ‘‘Federal mandates’’ that may Order 12866, and (2) concerns an responsibilities among the various result in expenditures to State, local, environmental health or safety risk that levels of government as specified in and tribal governments, in the aggregate, EPA has reason to believe may have a Executive Order 13132. Today’s rule or to the private sector of $100 million disproportionate effect on children. If eliminates the existing requirement that or more in any one year. Before the regulatory action meets both criteria, manufacturers of motorcycles must promulgating an EPA rule for which a the Agency must evaluate the equip certain motorcycles with fuel tank written statement is needed, section 205 environmental health or safety effects of filler inlet restrictors. Thus, Executive of the UMRA generally requires EPA to the planned rule on children, and Order 13132 does not apply to this rule. identify and consider a reasonable explain why the planned regulation is number of regulatory alternatives and preferable to other potentially effective F. National Technology Transfer and adopt the least costly, most cost- and reasonably feasible alternatives Advancement Act effective or least burdensome alternative considered by the Agency. Section 12(d) of the National that achieves the objectives of the rule. This rule is not subject to the Technology Transfer and Advancement The provisions of section 205 do not Executive Order because it is not Act of 1995 (‘‘NTTAA’’), Public Law apply when they are inconsistent with economically significant as defined in 104–113, section 12(d) (15 U.S.C. 272 applicable law. Moreover, section 205 Executive Order 12866, and because the note) directs EPA to use voluntary allows EPA to adopt an alternative other Agency does not have reason to believe consensus standards in its regulatory than the least costly, most cost-effective the environmental health or safety risks activities unless to do so would be or least burdensome alternative if the addressed by this action present a inconsistent with applicable law or Administrator publishes with the final disproportionate risk to children. EPA otherwise impractical. Voluntary rule an explanation why that alternative reduced the content of lead in leaded consensus standards are technical was not adopted. Before EPA establishes gasoline, because EPA found that lead standards (e.g., materials specifications, any regulatory requirements that may particle emissions from motor vehicles test methods, sampling procedures, and significantly or uniquely affect small presented a significant risk of harm to business practices) that are developed or governments, including tribal the health of urban populations, adopted by voluntary consensus governments, it must have developed especially children (38 FR 33734, Dec. standards bodies. The NTTAA directs under section 203 of the UMRA a small 6, 1973). Congress ultimately banned EPA to provide Congress, through OMB, government agency plan. The plan must the use of leaded gasoline in motor explanations when the Agency decides provide for notifying affected small vehicles after 1995. 42 U.S.C. 7545(n). not to use available and applicable governments, enabling officials of Gasoline tank filler inlet restrictors were voluntary consensus standards. affected small governments to have related to the phase-out of leaded This action does not involve technical meaningful and timely input in the gasoline to prevent a motor vehicle with standards. Therefore, EPA did not development of EPA regulatory an emission control device, such as a consider the use of any voluntary proposals with significant Federal catalytic converter, from using leaded consensus standards. intergovernmental mandates, and gasoline. Leaded gasoline can damage G. Congressional Review informing, educating, and advising such emission control devices. Today small governments on compliance with there is relatively little risk of The Congressional Review Act, 5 the regulatory requirements. misfueling a motorcycle with an U.S.C. 801 et seq., as added by the Small EPA has determined that this rule emission control device that could be Business Regulatory Enforcement does not contain a Federal mandate that damaged by the use of leaded gasoline, Fairness Act of 1996, generally provides may result in expenditures of $100 because leaded gasoline has now been that before a rule may take effect, the million or more for State, local, and banned from use in all motor vehicles agency promulgating the rule must tribal governments, in the aggregate, or for over five years and is generally no submit a rule report, which includes a the private sector in any one year. longer available for sale at gasoline copy of the rule, to each House of the Today’s rule exempts motorcycles from filling stations. Congress and to the Comptroller General a current provision that requires them, of the United States. EPA will submit a under certain circumstances, to be E. Executive Order 13132 (Federalism) report containing this rule and other equipped with fuel inlet restrictors, and Executive Order 13132, entitled required information to the U. S. Senate, thus avoids the costs imposed by the ‘‘Federalism’’ (64 FR 43255, Aug. 10, the U. S. House of Representatives, and

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the Comptroller General of the United that today’s rule will relieve regulatory K. Electronic Copies of Rulemaking States prior to publication of the rule in burden for any small entity. A copy of this action is available on the Federal Register. A ‘‘major rule’’ I. Executive Order 13175 (Consultation the Internet at http://www.epa.gov/otaq cannot take effect until 60 days after it and Coordination With Indian Tribal under the title: ‘‘Final Rule—Prohibition is published in the Federal Register. Governments) on Gasoline Containing Lead or Lead This action is not a ‘‘major rule’’ as Additives for Highway Use: Fuel Inlet defined by 5 U.S.C. 804(a). Executive Order 13175, entitled ‘‘Consultation and Coordination with Restrictor Exemption For Motorcycles.’’ H. Regulatory Flexibility Act (RFA), as Indian Tribal Governments’’ (65 FR L. Statutory Authority amended by the Small Business 67249, November 6, 2000), requires EPA Regulatory Enforcement Fairness Act of to develop an accountable process to Authority for this action is in sections 1996 (SBREFA), 5 U.S.C. 601 et seq. ensure ‘‘meaningful and timely input by 211, and 301(a) of the Clean Air Act, 42 U.S.C. 7545, 7601(a). After considering the economic tribal officials in the development of impacts of today’s final rule on small regulatory policies that have tribal List of Subjects in 40 CFR Part 80 entities, EPA has concluded that this implications.’’ ‘‘Policies that have tribal Environmental protection, Fuel action will not have a significant implications’’ is defined in the additives, Gasoline, Motor vehicle economic impact on a substantial Executive Order to include regulations pollution, Penalties, Reporting and number of small entities. In determining that have ‘‘substantial direct effects on recordkeeping requirements. whether a rule has a significant one or more Indian tribes, on the economic impact on a substantial relationship between the Federal Dated: May 16, 2002. number of small entities, the impact of government and the Indian tribes, or on Christine Todd Whitman, the distribution of power and concern is any significant adverse Administrator. economic impact on small entities, responsibilities between the Federal government and Indian tribes.’’ since the primary purpose of the For the reasons set forth in the This final rule does not have tribal regulatory flexibility analyses is to preamble, part 80 of title 40 of the Code implications. It will not have substantial identify and address regulatory of Federal Regulations is amended as direct effects on tribal governments, on follows: alternatives ‘‘which minimize any the relationship between the Federal significant economic impact of the government and Indian tribes, or on the proposed rule on small entities.’’ 5 PART 80—REGULATIONS OF FUELS distribution of power and AND FUEL ADDITIVES U.S.C. 603 and 604. Thus, an agency responsibilities between the Federal may conclude that a rule will not have government and Indian tribes, as 1. The authority citation for part 80 a significant economic impact on a specified in Executive Order 13175. The continues to read as follows: substantial number of small entities if rule affects the applicability of the fuel the rule relieves regulatory burden, or Authority: 42 U.S.C. 7414, 7545 and tank filler inlet restrictor to motorcycles. 7601(a). otherwise has a positive economic effect It therefore affects only manufacturers of 2. Section 80.24 is amended by on all of the small entities subject to the motorcycles Thus, Executive Order adding paragraph (c) to read as follows: rule. We have therefore concluded that 13175 does not apply to this rule. today’s final rule will relieve regulatory J. Executive Order 13211 (Energy § 80.24 Controls applicable to motor burden for all small entities affected by vehicle manufacturers. this rule. Effects) * * * * * Today’s rule is a deregulatory action This rule is not subject to Executive (c) A motorcycle, as defined at 40 CFR and affects all motorcycle Order 13211, ‘‘Actions Concerning 86.402 for the applicable model year, is manufacturers. It eliminates the existing Regulations That Significantly Affect exempt from the requirements of requirement that manufacturers of Energy Supply, Distribution, or Use’’ (66 paragraph (b) of this section. motorcycles must equip certain FR 28355 (May 22, 2001)) because it is motorcycles with fuel tank filler inlet not a significant regulatory action under [FR Doc. 02–12846 Filed 5–23–02; 8:45 am] restrictors. We have therefore concluded Executive Order 12866. BILLING CODE 6560–50–P

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Part VI

Department of Education Office of Special Education and Rehabilitative Services; Special Education—Training and Information for Parents of Children with Disabilities; Notice

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DEPARTMENT OF EDUCATION captions, as well as all text in charts, If you participate in this e- tables, figures, and graphs. APPLICATION pilot, please note the [CFDA No.: 84.328M] • Use a font that is either 12-point or following: • larger or no smaller than 10 pitch Your participation is voluntary. • Office of Special Education and (characters per inch). You will not receive any additional Rehabilitative Services; Special point value or penalty because you The page limit does not apply to Part Education—Training and Information submit a grant application in electronic I—the cover sheet; Part II—the budget for Parents of Children with Disabilities or paper format. section, including the narrative budget • You can submit all documents justification; Part IV, the assurances and AGENCY: Department of Education. electronically, including the certifications; or the one-page abstract, ACTION: Notice inviting applications for Application for Federal Assistance (ED the resumes, the bibliography or new awards for fiscal year (FY) 2002. 424), Budget Information—Non- references, or the letters of support. Construction Programs (ED 524), and all SUMMARY: However, you must include all of the This notice provides closing necessary assurances and certifications. dates and other information regarding application narrative in Part III. • Within three working days of the transmittal of applications for FY We will reject without consideration submitting your electronic application, 2002 competitions under one program or evaluation any application if— fax a signed copy of the Application for authorized by the Individuals with • You apply these standards and Federal Assistance (ED 424) to the Disabilities Education Act (IDEA), as exceed the page limit; or Application Control Center after amended: Special Education—Training • You apply other standards and following these steps: and Information for Parents of Children exceed the equivalent of the page limit. 1. Print ED 424 from the e- with Disabilities (one priority). APPLICATION system. Instructions for Transmittal of Waiver of Rulemaking 2. Make sure that the institution’s Applications Authorizing Representative signs this It is generally our practice to offer form. interested parties the opportunity to Some of the procedures in these instructions for transmitting 3. Before faxing this form, submit comment on proposed priorities. your electronic application via the e- However, section 661(e)(2) of IDEA applications differ from those in the Education Department General APPLICATION system. You will receive makes the rulemaking procedures in the an automatic acknowledgement, which Administrative Procedure Act (5 U.S.C. Administrative Regulations (EDGAR) (34 CFR 75.102). Under the will include a PR/Award number (an 553) inapplicable to the priority in this identifying number unique to your notice. Administrative Procedure Act (5 U.S.C. 553) the Department generally offers application). General Requirements interested parties the opportunity to 4. Place the PR/Award number in the comment on proposed regulations. upper right hand corner of ED 424. (a) The projects funded under this 5. Fax ED 424 to the Application However, these amendments make notice must make positive efforts to Control Center at (202) 260–1349. procedural changes only and do not employ and advance in employment • We may request that you give us establish new substantive policy. qualified individuals with disabilities in original signatures on all other forms at Therefore, under 5 U.S.C. 553(b)(A), the project activities (see section 606 of a later date. IDEA). Secretary has determined that proposed You may access the electronic grant (b) Applicants and grant recipients rulemaking is not required. application for the Special Education— funded under this notice must involve Pilot Project for Electronic Submission Training and Information for Parents of individuals with disabilities or parents of Applications Children with Disabilities program at: of individuals with disabilities in http://e-grants.ed.gov. We have planning, implementing, and evaluating In FY 2002, the U.S. Department of included additional information about the projects (see section 661(f)(1)(A) of Education is continuing to expand its the e-APPLICATION pilot project (see IDEA). pilot project of electronic submission of Parity Guidelines between Paper and (c) The projects funded under these applications to include additional Electronic Applications) in the priorities must budget for a two-day formula grant programs and additional application package. Project Directors’ meeting in discretionary grant competitions. The Washington, DC during each year of the Special Education—Training and Special Education—Training and project. Information for Parents of Children with Information for Parents of Children with (d) Part III of each application Disabilities program—CFDA 84.328M is Disabilities (CFDA No. 84.328M) submitted under this notice, the one of the programs included in the Purpose of Program: The purpose of application narrative, is where an pilot project. If you are an applicant this program is to ensure that parents of applicant addresses the selection under the Special Education—Training children with disabilities receive criteria that are used by reviewers in and Information for Parents of Children training and information to help evaluating the application. You must with Disabilities program, you may improve results for their children. limit Part III to the equivalent of no submit your application to us in either Under section 682(e) of IDEA, the more than the number of pages listed in electronic or paper format. Assistant Secretary is required to: (a) the table at the end of this notice, using The pilot project involves the use of Make at least one award to a parent the following standards: the Electronic Grant Application System organization in each State, unless the • A ‘‘page’’ is 8.5’’ × 11’’ (on one side (e-APPLICATION, formerly e-GAPS) Assistant Secretary does not receive an only) with one-inch margins (top, portion of the Grant Administration and application from such an organization bottom, and sides). Payment System (GAPS). We request in each State of sufficient quality to • Double-space (no more than three your participation in this pilot project. warrant approval; and (b) select among lines per vertical inch) all text in the We shall continue to evaluate its applications submitted by parent application narrative, including titles, success and solicit suggestions for organizations in a State in a manner that headings, footnotes, quotations, and improvement. ensures the most effective assistance to

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parents, including parents in urban and Background of early intervention services to, rural areas, in the State. The IDEA Amendments of 1997 children with disabilities; and (6) Participate in school reform Applicable Regulations: (a) The strengthen the role of parents and activities; Education Department General increase their involvement in decisions (e) Contract with the State educational Administrative Regulations (EDGAR) in about their children’s education. In agency, if the State elects to contract 34 CFR parts 74, 75, 77, 79, 80, 81, 82, order to allocate resources more with the Parent Training and 85, 97, 98, and 99; and (b) The selection equitably, create a unified system of Information Center, for the purpose of criteria for this priority drawn from the service delivery, and provide the meeting with parents who choose not to EDGAR general selection criteria menu broadest coverage for the parents and use the mediation process to encourage (34 CFR 75.210). The specific selection families in every State, the Assistant the use, and explain the benefits, of criteria for this priority are included in Secretary is making awards in five-year mediation consistent with section the funding application packet for this cycles for each State. In FY 2002, 615(e)(2)(B) and (D) of IDEA; competition. applications for 5-year awards will be (f) Establish cooperative relations Eligible Applicants: Parent accepted for Arkansas, California, with the Community Parent Resource organizations, as defined in section Connecticut, Georgia, Illinois, Kansas, Center or Centers in their State in 682(g) of IDEA. A parent organization is Michigan, Montana, New Jersey, New accordance with section 683(b)(3) of a private nonprofit organization (other Mexico, Ohio, Oregon, South Carolina, IDEA; than an institution of higher education) Texas, and Utah. Exceptions to the 5- (g) Network with appropriate that: year awards will be in the States of clearinghouses, including organizations Nebraska and New York where (a) Has a board of directors, the parent conducting national dissemination applications will be accepted for 4-year activities under section 685(d) of IDEA, and professional members of which are awards. Awards may also be made to broadly representative of the population and with other national, State, and local authorized entities in Guam, the organizations and agencies, such as to be served and the majority of whom Commonwealth of the Northern Mariana are parents of children with disabilities, protection and advocacy agencies, that Islands, and the Freely Associated serve parents and families of children that includes individuals with States. disabilities and individuals working in with the full range of disabilities; (h) Annually report to the Assistant the fields of special education, related Priority Secretary on— services, and early intervention; or A Parent Training and Information (1) The number of parents to whom (b) Has a membership that represents Center must— the Parent Training and Information the interests of individuals with (a) Provide training and information Center provided information and disabilities and has established a special that meets the training and information training in the most recently concluded governing board meeting the needs of parents of children with fiscal year, and requirements for a board of directors in disabilities in the area served by the (2) The effectiveness of strategies used paragraph (a) under Eligible Applicants Center, particularly underserved parents to reach and serve parents, including and has a memorandum of and parents of children who may be underserved parents of children with understanding between this special inappropriately identified, including disabilities; and governing board and the board of those who are not identified at all; (i) If there is more than one parent directors of the organization that clearly (b) Assist parents to understand the center in a particular State, coordinate outlines the relationship between the availability of, and how to effectively its activities with the other center or board and the committee and the use, procedural safeguards under IDEA, centers to ensure the most effective decisionmaking responsibilities and including encouraging the use, and assistance to parents in that State. authority of each. explaining the benefits, of alternative An applicant must identify the methods of dispute resolution, such as In addition, to demonstrate eligibility strategies it will undertake— the mediation process described in (a) To ensure that the needs for to receive a grant, an applicant must IDEA; training and information for describe how its board or special (c) Serve the parents of infants, underserved parents of children with governing committee meets the criteria toddlers, and children with the full disabilities in the areas to be served are for a parent organization in section range of disabilities; effectively met, particularly in 682(g) of IDEA. Any parent organization (d) Assist parents to— underserved areas of the State; and that establishes a special governing (1) Better understand the nature of (b) To work with the community- committee under section 682(g)(2) of their children’s disabilities and their based organizations, particularly in the IDEA must demonstrate that the bylaws educational and developmental needs; underserved areas of the State. of its organization allow the governing (2) Communicate effectively with A Parent Training and Information committee to be responsible for personnel responsible for providing Center that receives assistance under operating the project (consistent with special education, early intervention, this absolute priority may also conduct existing fiscal policies of its and related services; the following activities— organization). (3) Participate in decisionmaking (a) Provide information to teachers Priority processes and the development of and other professionals who provide individualized education programs and special education and related services to Under sections 661(e) and 682 of individualized family service plans; children with disabilities; IDEA and 34 CFR 75.105(c)(3), we give (4) Obtain appropriate information (b) Assist students with disabilities to an absolute preference to applications about the range of options, programs, understand their rights and that meet the following priority. We will services, and resources available to responsibilities on reaching the age of fund under this competition only those assist children with disabilities and majority, as stated in section 615(m) of applications that meet this priority: their families; IDEA; and Absolute Priority—Parent Training and (5) Understand the provisions of IDEA (c) Assist parents of children with Information Centers (84.328M) for the education of, and the provision disabilities to be informed participants

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in the development and implementation below. A list of the counties that are Scioto, Lawrence, Jackson, Pike, Ross, of the State improvement plan under included in each Region also follows. Fayette, Greene, Clark, Champaign, IDEA. Logan, Shelby, Miami, Montgomery, California In addition to the annual Project Warren, Clinton, Highland. Directors’ meeting included in the —Region 1 $649,300 Region 2 includes the remainder of ‘‘General Requirements’’ section of this —Region 2 $532,300 the State. —Region 3 $181,235 notice, a project’s budget must include Michigan Regions funds to attend a regional Project —Region 4 $473,785 Directors’ meeting to be held each year —Region 5 $181,235 Region 1 includes the following counties: Oakland, Macomb, Wayne. of the project. Illinois Current funding levels and population Region 2 includes the remainder of of school age children were factors in —Region 1 $562,690 the State. —Region 2 $289,570 determining the funding levels for these Texas Regions: grants. Regions were identified in Michigan Region 1 includes the following California, Illinois, Michigan, Ohio, and —Region 1 $249,265 counties: Hardeman, Foard, Knox, Texas by using the educational services —Region 2 $414,265 Wilbarger, Baylor, Throckmorton, breakdowns operational within each Wichita, Archer, Young, Clay, Jack, State. Ohio Montague, Cooke, Wise, Palo Pinto, Project Period: With the exception of —Region 1 $226,190 Eralh, Parker, Hood, Somerveil, Denton, projects in the States of Nebraska and —Region 2 $438,115 Tarrant, Johnson, Grayson, Collin, New York, projects will be funded for a Texas Dallas, Ellis, Fannin, Hunt, Rockwall, period up to 60 months. Projects in the Kaufman, Lamar, Delta, Hopkins, Red States of Nebraska and New York will —Region 1 $432,085 River, Franklin, Titus, Camp, Morris, be funded for a period up to 48 months. —Region 2 $432,085 Bowie, Casa, Cass, Marion, Bosque, Estimated Project Awards: Project —Region 3 $244,085 Hamilton, Mills, Lampaas, Coryell, Hill, award amounts are for a single budget Consistent with EDGAR 34 CFR McLennan, Bell, Navarro, Freestone, period of 12 months. To ensure 75.104(b), we will reject any application Limestone, Falls, Burnet, Llano, maximum coverage for this competition, that proposes a project funding level for Gillespie, Kendall, Comal, Blanco, the Assistant Secretary has adopted any year that exceeds the stated Williamson, Travis, Hays, Lee, Bastrop, regional designations established by maximum award amount for that year. Caldwell, Guadalupa, Fayette, Gonzales, California, Illinois, Michigan, Ohio, and Listing of States/Regions/Counties Leon, Robertson, Millam, Burleston, Texas and has identified corresponding Washington, Austin, Brazoa, Madison, maximum award amounts. Any California Regions Grimes, Houston, Trinity, Walker, applicant that applies for grants for Region 1 includes the following Montgomery, Polk, San Jacinto, Tyler, more than one region must complete a Hardin, Jefferson, Orange, Jasper, separate application for each region. counties: Los Angeles, Ventura, Santa Barbara, San Luis Obispo. Newton, Raine, Van Zandt, Henderson, In the following States, one award Anderson, Wood, Smith, Cherokee, may be made in the following amounts Region 2 includes the following counties: Mono, Inyo, San Bernadino, Upshur, Gregg, Rusk, Nacogdoches, to a qualified applicant for a parent Angelina, Harrison, Panola, Shelby, San center to serve the entire State: Orange, Riverside, San Diego, Imperial. Region 3 includes the following Augustine, Sabine. —Arkansas $265,225 counties: Madera, Stanislaus, Mercer, Region 2 includes the following —Connecticut $283,050 Mariposa, San Benito, Monterey, counties: Kerr, Real, Kinney, Maverik, —Georgia $481,750 Fresno, Kings, Tulare, Kern. Uvalde, Zavala, Dimmit, Bandera, —Kansas $299,475 Region 4 includes the following Medina, Frio, La Salle, Boxer, Atascosa, —Montana $233,775 counties: Sonoma, Napa, Yolo, Solano, Wilson, Webb, Zapata, Jim Hogg, Staarr, —New Jersey $465,750 Marin, Contra Costa, San Joaquin, Hidalgo, Willsoy, Cameron, McMullen, —New Mexico $285,125 Alameda, San Mateo, Santa Clara, Santa Duval, Live Oak, Jim Wells, Brooke, —Oregon $290,775 Cruz, San Francisco. Nueces, Kisberg, Kenedy, San Patricio, —South Carolina $295,560 Region 5 includes the following Aransas, Bee, Karnes, Gollad, Dewitt, —Utah $253,170 counties: Del Norte, Humboldt, Lavaca, Colorado, Wharton, Malagorda, —Nebraska $230,625 Mendocino, Sisklyou, Trinity, Shasta, Jackson, Victoria, Refugio, Calhoun, —New York $234,075 Modoc, Lassen, Tehama, Lake, Glenn, Waller, Fort Bond, Brezoria, Harris, (These figures represent the maximum Colusa, Butte, Sutter, Yuba, Sacramento, Galveston, Liberty, Chambers. amounts the Assistant Secretary will Nevada, Plumas, Sierra, Placer, El Region 3 includes the following award. In addition, the Assistant Dorado, Amador, Calavaras, Alpine, counties: El Paso, Hudspeth, Culberson, Secretary has not specified maximum Tuolumne. Jeff Davis, Presidio, Reeves, Brewster, amounts for Guam, the Commonwealth Pecos, Terrell, Dallam, Hartley, Oldham, of the Northern Mariana Islands, and the Illinois Regions Deaf Smith, Parmer, Bailey, Cochran, Freely Associated States). Region 1 includes the following Yoakum, Gaines, Andrews, Loving, In the following States with the counties: Cook, DuPage, Grundy, Kane, Winkler, Ward, Sharman, Moore, Potter, exception of Illinois, one award will be Kendall, Lake, McHenry, Will. Randall, Castro, Swisher, Lamb, made in the following amounts to a Region 2 includes the remainder of Hockley, Terry, Ector, Crane, Upton, qualified applicant for a parent center to the State Reagan, Midland, Glasscook, Dawson, serve each identified Region. In Illinois Martin, Borden, Howard, Hansford, Region 1, the Assistant Secretary will Ohio Regions Hutchinson, Carson, Armstrong, make up to two awards. The total of Region 1 includes the following Briscoe, Ochiltree, Roberts, Gray, these two awards will not exceed the counties: Darke, Preble, Butler, Donley, Hall, Lipscomb, Hemphill, maximum amount listed in the chart Hamilton, Clermont, Brown, Adams, Wheeler, Collingsworth, Childress,

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Hale, Lubbock, Lynn, Floyd, Crosby, FOR FURTHER INFORMATION CONTACT: on processes developed by State and Garza, Motley, Dickens, Kent, Cottle, Grants and Contracts Services Team, local governments for coordination and King, Scurry, Mitchell, Stonewall, U.S. Department of Education, 400 review of proposed Federal financial Fisher, Nolan, Haskall, Jones, Taylor, Maryland Avenue, SW., room 3317, assistance. This document provides Shackelford, Callahan, Stephens, Switzer Building, Washington, DC early notification of our specific plans Eastland, Sterling, Irion, Crockett, Val 20202–2550. Telephone: (202) 205– and actions for this program. Verde, Coke, Tom Green, Schlelcher, 8207. Electronic Access to This Document Sutton, Edwards, Runnels, Concho, If you use a telecommunications Menard, Kimble, Coleman, McCulloch, device for the deaf (TDD), you may call You may view this document, as well Mason, Brown, San Sabe. the Federal Information Relay Service as all other Department of Education Page Limits: The maximum page limit (FIRS) at 1–800–877–8339. documents published in the Federal Individuals with disabilities may Register, in text or Adobe Portable for this priority is 50 double-spaced obtain this document in an alternative Document Format (PDF) on the internet pages. format (e.g., Braille, large print, at the following site: www.ed.gov/ Note: Applications must meet the required audiotape, or computer diskette) on page limit standards that are described in the request to the Grants and Contracts legislation/FedRegister ‘‘General Requirements’’ section of this Services Team under FOR FURTHER To use PDF you must have Adobe notice. INFORMATION CONTACT. Acrobat Reader, which is available free For Applications Contact: Education Individuals with disabilities may also at this site. If you have questions about Publications Center (ED Pubs), PO Box obtain a copy of the application package using PDF, call the U.S. Government 1398, Jessup, Maryland 20794–1398. in an alternative format by contacting Printing Office (GPO), toll free, at 1– Telephone (toll free): 1–877–4ED-Pubs the Grants and Contracts Services Team 888–293–6498; or in the Washington, (1–877–433–7827). FAX: 301–470–1244. under FOR FURTHER INFORMATION DC, area at (202) 512–1530. If you use a telecommunications device CONTACT. However, the Department is Note: The official version of this document for the deaf (TDD), you may call (toll not able to reproduce in an alternative is the document published in the Federal free) 1–877–576–7734. format the standard forms included in Register. Free Internet access to the official the application package. edition of the Federal Register and the Code You may also contact Ed Pubs at its of Federal Regulations is available on GPO Web site: http://www.ed.gov/pubs/ Intergovernmental Review Access at: http://www.access.gpo/nara/ edpubs.html This program is subject to the index.html Or you may contact Ed Pubs at its e- requirements of Executive Order 12372 mail address: [email protected] and the regulations in 34 CFR part 79. Program Authority: 20 U.S.C. 1482. If you request an application from Ed One of the objectives of the Executive Dated: May 20, 2002. Pubs, be sure to identify this order is to foster an intergovernmental Robert H. Pasternack, competition as follows: CFDA No. partnership and a strengthened Assistant Secretary for Special Education and 84.328M. federalism. The Executive Order relies Rehabilitative Services.

INDIVIDUALS WITH DISABILITIES EDUCATION ACT—APPLICATION NOTICE FOR FISCAL YEAR 2002

CFDA number and name: 84.328M— special education— Applica- Application Deadline for Maximum Estimated Estimated Estimated training and informa- tions avail- deadline Intergovern- award range of average number Project period Page tion for parents of able date mental review (per awards size of of awards limit** children with disabil- year)* awards ities

Parent Training and 05/24/02 07/08/02 09/06/02 $100,000 $273,355 27 Up to 60 mos. 50 Information Cen- ters. Arkansas ...... $265,225 $585,000 Connecticut ...... $283,050 Georgia ...... $481,750 Kansas ...... $299,475 Montana ...... $233,775 New Jersey ...... $465,750 New Mexico ...... $285,125 Oregon ...... $290,775 South Carolina ...... $295,560 Utah ...... $253,170 Nebraska ...... $230,625 Up to 48 mos. New York ...... $234,075 Up to 48 mos. California: ...... Up to 60 mos. Region 1 ...... $649,300 Region 2 ...... $532,300 Region 3 ...... $181,235 Region 4 ...... $473,785 Region 5 ...... $181,235 Illinois: Up to 60 mos. Region 1 ...... $562,690 Region 2 ...... $289,570 Michigan: Up to 60 mos. Region 1 ...... $249,265 Region 2 ...... $414,265

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INDIVIDUALS WITH DISABILITIES EDUCATION ACT—APPLICATION NOTICE FOR FISCAL YEAR 2002—Continued

CFDA number and name: 84.328M— special education— Applica- Application Deadline for Maximum Estimated Estimated Estimated training and informa- tions avail- deadline Intergovern- award range of average number Project period Page tion for parents of able date mental review (per awards size of of awards limit** children with disabil- year)* awards ities

Ohio: ...... Up to 60 mos. Region 1 ...... $226,190 Region 2 ...... $438,115 Texas: ...... Up to 60 mos. Region 1 ...... $432,085 Region 2 ...... $432,085 Region 3 ...... $244,085 *Consistent with EDGAR 34 CFR 75.104(b), we will reject any application that proposes a project funding level for any year that exceeds the stated maximum award amount for that year. Awards may also be made to authorized entities in Guam, the Commonwealth of the Northern Mar- iana Islands, and the Freely Associated States. However, the Assistant Secretary has not specified maximum funding levels for these entities. ** Applicants must limit the Application Narrative, Part III of the Application, to the page limits noted in the table in this notice. Please refer to the ‘‘Page Limit’’ requirements included in the priority description and the page limit standards described in the ‘‘General Requirements’’ section. We will reject and will not consider an application that does not adhere to this requirement. NOTE:The Department of Education is not bound by any estimates in this notice.

[FR Doc. 02–13159 Filed 5–23–02; 8:45 am] BILLING CODE 4000–01–P

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Reader Aids Federal Register Vol. 67, No. 101 Friday, May 24, 2002

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING MAY

Federal Register/Code of Federal Regulations At the end of each month, the Office of the Federal Register General Information, indexes and other finding 202–523–5227 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 523–5227 the revision date of each title. 3 CFR 29...... 36079 Presidential Documents 301 ...... 21561, 30769, 31935, Proclamations: 523–5227 34589, 34817 Executive orders and proclamations 5437 (See Proc. The United States Government Manual 523–5227 915...... 31715 7553) ...... 30535 989...... 34383 Other Services Proc. 6693 (Superseded by 993...... 31717 523–3447 Electronic and on-line services (voice) Proc. 7562) ...... 35707 Ch. XIII...... 30769 523–3187 Privacy Act Compilation 6962 (See Proc. Proposed Rules: 523–6641 Public Laws Update Service (numbers, dates, etc.) 7554) ...... 30537 318...... 34626, 35932 523–5229 TTY for the deaf-and-hard-of-hearing 7350 (See Proc. 929...... 21854 7561) ...... 35705 930...... 31896 ELECTRONIC RESEARCH 7400 (See Proc. 1427...... 31151 1710...... 36542 World Wide Web 7561) ...... 35705 7547...... 21559 1717...... 36542 Full text of the daily Federal Register, CFR and other publications 7548...... 30307 is located at: http://www.access.gpo.gov/nara 7549...... 30309 8 CFR Federal Register information and research tools, including Public 7550...... 30311 Proposed Rules: Inspection List, indexes, and links to GPO Access are located at: 7551...... 30313 3...... 31157 http://www.nara.gov/fedreg 7552...... 30533 103...... 34862, 36676 E-mail 7553...... 30535 214...... 34862, 36676 7554...... 30537 236...... 31157 FEDREGTOC-L (Federal Register Table of Contents LISTSERV) is 7555...... 31105 240...... 31157 an open e-mail service that provides subscribers with a digital 7556...... 31107 241...... 31157 form of the Federal Register Table of Contents. The digital form 7557...... 34583 286...... 34414 of the Federal Register Table of Contents includes HTML and 7558...... 34585 PDF links to the full text of each document. 7559...... 34587 9 CFR To join or leave, go to http://listserv.access.gpo.gov and select 7560...... 34815 94...... 31935, 34590 Online mailing list archives, FEDREGTOC-L, Join or leave the list 7561...... 35705 (or change settings); then follow the instructions. Proposed Rules: 7562...... 35707 53...... 21934 PENS (Public Law Electronic Notification Service) is an e-mail 7563...... 35890 71...... 31987 service that notifies subscribers of recently enacted laws. 7564...... 35893 93...... 31987 To subscribe, go to http://hydra.gsa.gov/archives/publaws-l.html 7565...... 36495 94...... 31987, 35936 and select Join or leave the list (or change settings); then follow 7566...... 36497 98...... 31987 the instructions. 7567...... 36499 112...... 34630 FEDREGTOC-L and PENS are mailing lists only. We cannot Executive orders: 113...... 34630 respond to specific inquiries. 12958 (See Order of 130...... 31987 Reference questions. Send questions and comments about the May 6, 2002)...... 31109 Federal Register system to: [email protected] 13263...... 22337 10 CFR The Federal Register staff cannot interpret specific documents or Administrative orders: 15...... 30315 regulations. Notices: 72...... 31938 Notice of May 16, 430...... 21566, 36368 FEDERAL REGISTER PAGES AND DATE, MAY 2002 ...... 35423 Presidential Proposed Rules: 21559–21974...... 1 Determinations: 71...... 36118 21975–22336...... 2 No. 2002–17 of April 11 CFR 22337–30306...... 3 24, 2002 ...... 31711 30307–30532...... 6 No. 2002–18 of April Proposed Rules: 30533–30768...... 7 27, 2002 ...... 31713 100...... 35654 30769–31104...... 8 May 6, 2002...... 31109 102...... 35654 31105–31710...... 9 104...... 35654 31711–31934...... 10 5 CFR 106...... 35654 31935–32816...... 13 591...... 22339 108...... 35654 34383–34584...... 14 Ch. VII...... 30769 110...... 31164, 35654 34585–34816...... 15 2608...... 35709 114...... 35654 34817–34990...... 16 2634...... 22348 300...... 35654 34991–35424...... 17 Proposed Rules 9034...... 35654 35425–35704...... 20 1605...... 35051 35705–35890...... 21 1620...... 35051 12 CFR 35891–36078...... 22 1651...... 35051 3...... 35991 36079–36494...... 23 1655...... 35051 7...... 35992 36495–36778...... 24 203...... 30771 7 CFR 208...... 35991 28...... 36501 225...... 35991

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325...... 35991 1500...... 31165 41...... 30546 31 CFR 360...... 34385 51...... 34831 17 CFR 1...... 34401, 34402 366...... 34591 Proposed Rules: 205...... 31880 516...... 31722 30...... 30785 203...... 30631 240...... 36517 567...... 31722, 35991 41...... 36740 609...... 30772 200...... 30326 23 CFR 32 CFR 611...... 31938, 35895 230...... 36678 Proposed Rules: 286...... 31127 614...... 31938, 35895 232...... 36678 655...... 35850 701...... 30553 620...... 30772 239...... 36678 706...... 30803, 30804 790...... 30772 240...... 36678, 36740 24 CFR 792...... 30772 249...... 36679 Proposed Rules: 33 CFR 908...... 34990 269...... 36679 888...... 36306 100...... 36518, 36519 966...... 35713 270...... 31076 110...... 34838 Proposed Rules: 274...... 31076 25 CFR 117 ...... 21997, 31727, 35901, 201...... 36544 Proposed Rules: 900...... 34602 35903, 35905 13 CFR 228...... 35620 165 ...... 21576, 22350, 30554, 229...... 35620 26 CFR 30556, 30557, 30805, 30807, Proposed Rules: 230...... 36712 1 ...... 30547, 31955, 34388, 30809, 31128, 31730, 31955, 107...... 35055 239...... 36712 34603, 35009, 35731, 36676 31958, 34612, 34838, 34840, 108...... 35449 240...... 30628 5c ...... 35009 34842, 35035, 35905, 35907, 121...... 30820 249...... 35620 5f...... 35009 36098, 36519, 36521, 36522, 14 CFR 270...... 31081, 36712 18...... 35009 36523 274...... 36712 175...... 34756 13...... 31402 54...... 35731 177...... 34756 23 ...... 21975, 36502, 36505 602 ...... 34388, 34603, 35009, 18 CFR 179...... 34756 25 ...... 35715, 35895, 36507 35731 2...... 31044 181...... 34756 39 ...... 21567, 21569, 21572, Proposed Rules: 35...... 31044, 36093 183...... 34756 21803, 21975, 21976, 21979, 1 ...... 30634, 30826, 31995, 141...... 36093 334...... 36524 21981, 21983, 21985, 21987, 35064, 35765 284...... 30788 21988, 22349, 30541, 30774, 31...... 30634 Proposed Rules: 385...... 36093 31111, 31113, 31115, 31117, 48...... 34882 100...... 22023 388...... 21994 31939, 31943, 31945, 34598, 54...... 35765 117...... 31745 Proposed Rules: 155...... 31868 34818, 34820, 34823, 34826, 27 CFR 35425, 35847, 35897, 36081, 35...... 22250 165 ...... 30846, 31747, 31750, 36085, 36087, 36390, 36092, 37...... 35062 4...... 30796 34420, 34645, 35079, 35939, 36509 161...... 35062 5...... 30796 36122, 36554 61...... 30524 250...... 35062 7...... 30796 323...... 31129 284...... 35062 19...... 30796 63...... 30524 34 CFR 65...... 30524 358...... 35062 20...... 30796 22...... 30796 Proposed Rules: 71 ...... 21575, 21990, 30775, 19 CFR 30776, 30777, 30778, 30779, 24...... 30796 106...... 31098 30780, 30781, 30782, 30783, 24...... 31948 25...... 30796 200...... 30452, 30461 122...... 35722 26...... 30796 31728, 31946, 31947, 34990, 36 CFR 35426, 35899, 35901 141...... 36096 27...... 30796 44...... 30799 242...... 30559 91...... 31932 20 CFR 95...... 30784 70...... 30796 219...... 35431 97 ...... 21990, 21992, 34828, 404...... 35723 251...... 30796 1220...... 31961 36511 Proposed Rules: 1222...... 31961 28 CFR 121...... 31932 416...... 22021 1228...... 31961 139...... 31932 655...... 30466 Proposed Rules: 1230...... 31692, 34574 300...... 30324 656...... 30466 16...... 31166 Proposed Rules: 1240...... 31119 Ch. I ...... 30338 1260...... 30544 21 CFR 29 CFR 7...... 30339 1...... 34387 1614...... 35732 Proposed Rules: 37 CFR 25 ...... 22363, 30820, 34414 20...... 35724 4022...... 34610 33...... 22019 58...... 35724 4044...... 34610 1...... 36099 39 ...... 31737, 31992, 34633, 73...... 35429 Proposed Rules: 30 CFR 34635, 34637, 34639, 34641, 101...... 30795 1...... 30634 34880, 35057, 35059, 35456, 170...... 35724 250...... 35398 2...... 30634, 35081 171...... 35724 256...... 35398 35459, 35461, 35464, 35763, 38 CFR 36119 174...... 35724 Ch. VI...... 30803 71 ...... 22020, 22366, 31994, 179...... 35724 904...... 35025 17...... 21998, 35037 91...... 31920 310...... 31123, 31125 913...... 35029 20...... 36102 121...... 22020, 22363 520...... 21996 917...... 30549 21...... 34404 125...... 22020 522...... 34387 936...... 36514 Proposed Rules: 135...... 22020 558 ...... 21996, 30326, 30545, 948...... 21904 1...... 34884 187...... 30334 34829, 36097, 36512 Proposed Rules: 39 CFR Proposed Rules: 250...... 35072 15 CFR 170...... 35764 773...... 35070 111...... 30571 774...... 35428 314...... 22367 780...... 35070 Proposed Rules: 358...... 31739 784...... 35070 265...... 31167 16 CFR 601...... 22367 800...... 35070 501...... 22025, 31168 305...... 35006 872...... 34415 913...... 35073 3001...... 35766 314...... 36484 935...... 35076 Proposed Rules: 22 CFR 944...... 35077 40 CFR 303...... 36551 22...... 34831 948...... 30336 9...... 22353

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51...... 21868 1048...... 21613 10...... 34756 208...... 32002 52 ...... 21868, 22168, 30574, 1051...... 21613 15...... 34756 210...... 32002 30589, 30591, 30594, 31143, 1065...... 21613 24...... 34756 31733, 31963, 34405, 34614, 1068...... 21613 25...... 34756 49 CFR 35434, 35437, 35439, 35442, 26...... 34756 36105, 36108 41 CFR 30...... 34756 Ch. I ...... 31975 62...... 22354, 35442 Proposed Rules: 70...... 34756 214...... 30819 63...... 21579 102...... 34890 90...... 34756 385...... 31978 70...... 31966, 34884 173...... 34890 114...... 34756 1511...... 21582 80...... 36676, 36766 169...... 34756 Proposed Rules: 81...... 31143 42 CFR 175...... 34756 107...... 22028, 36138 96...... 21868 Ch. I ...... 36539 188...... 34756 171...... 22028, 36138 97...... 21868 Ch. IV...... 36539 199...... 34756 172...... 22028, 36138 124...... 30811 Ch. V...... 36539 175...... 32002 140...... 35735 36...... 35334 47 CFR 177...... 22028, 36138 157...... 35909, 35910 36a...... 35334 1...... 34848 571...... 21806 180 ...... 34616, 35045, 35912, 81...... 22296 15...... 34852 572...... 22381 35915, 36525, 36534 82...... 22314 20...... 36112 22...... 21999 228...... 30597 136...... 35334 50 CFR 232...... 31129 136a...... 35334 24...... 21999 261...... 30811, 36110 137...... 35334 63...... 21803 100...... 30559 268...... 35924 1001...... 21579 64...... 21999 222...... 21585, 34622 271...... 30599 Proposed Rules: 73 ...... 21580, 21581, 21582, 223...... 21585, 34622 1603...... 35445 405...... 31404 30818, 34620, 34621, 34622 224...... 21586 Proposed Rules: 412...... 31404 90...... 34848 300...... 30604 51...... 30418 413...... 31404 Proposed Rules: 600...... 30604 52 ...... 21607, 22242, 30637, 414...... 21617 1...... 34651 622...... 21598, 22359 30638, 30640, 31168, 31752, 482...... 31404 5...... 22376 648 ...... 30331, 30614, 35928 31998, 34422, 34647, 35467, 485...... 31404 21...... 35083, 36676 660 ...... 30604, 30616, 34408 35468, 35470, 36124, 36136, 489...... 31404 25...... 22376 679 ...... 21600, 22008, 34860, 36137 54...... 34653 35448, 36541 60...... 36476 43 CFR 61...... 34665 Proposed Rules: 62...... 22376, 35470 1820...... 30328 69...... 34665 17 ...... 30641, 30642, 30643, 63 ...... 21612, 30848, 34548, 73 ...... 21618, 22027, 30863, 30644, 30645, 32003, 34422, 44 CFR 36460 31169, 31170, 31171, 31753, 34520, 34893, 35942 70...... 34886 64...... 30329 34669, 34670, 36137 20...... 31754 81...... 31168, 36135 65 ...... 35743, 35745, 35749, 74...... 35083, 36676 222...... 31172 89...... 21613 35752 76...... 30863 223...... 31172 90...... 21613 67 ...... 35758, 35756, 35758 80...... 35086 228...... 30646 91...... 21613 Proposed Rules: 97...... 22376 600...... 21618 94...... 21613 67 ...... 30345, 35775, 35781, 622...... 31173 48 CFR 194...... 35471 35784 635...... 22165 271...... 30640 Ch. 18 ...... 30602 648 ...... 22035, 36139, 36556 300...... 34886 46 CFR Proposed Rules: 660...... 30346 438...... 35774 2...... 34756 31...... 34810 679...... 34424, 34624

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REMINDERS Chartering and field of West Coast States and ENVIRONMENTAL The items in this list were membership manual; Western Pacific PROTECTION AGENCY editorially compiled as an aid update; published 4-24- Fisheries— Air quality implementation to Federal Register users. 02 Pacific Fishery plans; approval and Inclusion or exclusion from SOCIAL SECURITY Management Council; promulgation; various this list has no legal ADMINISTRATION environmental impact States: significance. Social security benefits: statement; comments California; comments due by Federal old-age, survivors, due by 5-31-02; 5-31-02; published 4-1-02 and disability insurance— published 4-16-02 [FR [FR 02-07633] RULES GOING INTO 02-09203] Disability determinations; ENVIRONMENTAL EFFECT MAY 24, 2002 Marine mammals: medical criteria; PROTECTION AGENCY technical revisions; Commercial fishing Air quality implementation AGRICULTURE published 4-24-02 authorizations— DEPARTMENT plans; approval and TRANSPORTATION Atlantic Lage Whale Take promulgation; various Agricultural Marketing DEPARTMENT Reduction Plan; States: Service Federal Aviation comments due by 5-28- California; comments due by Tobacco inspection: Administration 02; published 3-27-02 5-31-02; published 4-1-02 Airworthiness standards: [FR 02-07129] Mandatory grading; producer [FR 02-07634] referenda; published 5-23- Transport category Incidental taking— 02 airplanes— Cook Inlet, AK; beluga ENVIRONMENTAL PROTECTION AGENCY ENVIRONMENTAL Braking systems; whales; subsistence PROTECTION AGENCY harmonization with harvest by Alaska Air quality implementation plans; approval and Air quality implementation European standards; natives; limitation; promulgation; various plans; approval and published 4-24-02 comments due by 5-28- States: promulgation; various TREASURY DEPARTMENT 02; published 5-7-02 States: Fiscal Service [FR 02-11302] South Carolina; comments Missouri; published 3-25-02 Practice and procedure: CORPORATION FOR due by 5-28-02; published 4-26-02 [FR 02-10334] Pesticides; tolerances in food, Checks drawn on United NATIONAL AND animal feeds, and raw States Treasury; COMMUNITY SERVICE ENVIRONMENTAL agricultural commodities: indorsement and payment; AmeriCorps grant regulations; PROTECTION AGENCY Asien, etc.; published 5-24- published 5-24-02 comments due by 5-28-02; Air quality implementation 02 published 3-26-02 [FR 02- plans; approval and 06604] HEALTH AND HUMAN COMMENTS DUE NEXT promulgation; various SERVICES DEPARTMENT WEEK DEFENSE DEPARTMENT States: Centers for Medicare & Health care services; South Carolina; comments Medicaid Services AGRICULTURE collections from third party due by 5-28-02; published DEPARTMENT payers of reasonable 4-26-02 [FR 02-10335] Medicare and Medicaid: Agricultural Marketing charges; comments due by Utah; comments due by 5- Peer review organizations; Service 5-28-02; published 3-29-02 31-02; published 5-1-02 name and other changes; [FR 02-07539] [FR 02-10727] technical amendments; Apples; grade standards; published 5-24-02 comments due by 5-28-02; ENVIRONMENTAL Air quality planning purposes; published 3-26-02 [FR 02- PROTECTION AGENCY designation of areas: HEALTH AND HUMAN 07221] SERVICES DEPARTMENT Air program: Nevada; comments due by COMMERCE DEPARTMENT 5-30-02; published 4-30- Food and Drug Stratospheric ozone National Oceanic and 02 [FR 02-10628] Administration protection— Atmospheric Administration Methyl bromide; FEDERAL Animal drugs, feeds, and Fishery conservation and related products: allowances to produce COMMUNICATIONS management: for developing countries; COMMISSION Lincomycin; published 5-24- Alaska; fisheries of comments due by 5-29- Radio and television 02 Exclusive Economic 02; published 4-29-02 broadcasting: HEALTH AND HUMAN Zone— [FR 02-10417] SERVICES DEPARTMENT Bering Sea and Aleutian Broadcast and cable EEO ENVIRONMENTAL rules and policies; Medicare and Medicaid: Islands groundfish and PROTECTION AGENCY Gulf of Alaska revision; comments due Peer review organizations; Air programs: by 5-29-02; published 5-8- name and other changes; groundfish; Steller sea Stratospheric ozone 02 [FR 02-11388] technical amendments; lion protection protection— published 5-24-02 measures; amendment FEDERAL ELECTION and correction; Methyl bromide; COMMISSION INTERIOR DEPARTMENT comments due by 5-31- allowances to produce Compliance procedures: Surface Mining Reclamation for developing countries; 02; published 5-1-02 Administrative fines; civil and Enforcement Office comments due by 5-29- [FR 02-10693] money penalties reduction Permanent program and 02; published 4-29-02 Northeastern United States for those who file reports abandoned mine land [FR 02-10416] fisheries— late or not at all; reclamation plan Northeast multispecies; ENVIRONMENTAL submissions: comments due by 5-28- comments due by 5-29- PROTECTION AGENCY 02; published 4-25-02 [FR Oklahoma; published 5-24- 02; published 4-29-02 Air quality implementation 02-10106] 02 [FR 02-10488] plans; approval and Prohibited and excessive NATIONAL CREDIT UNION COMMERCE DEPARTMENT promulgation; various contributions; non-Federal ADMINISTRATION National Oceanic and States: funds or soft money; Credit unions: Atmospheric Administration California; comments due by comments due by 5-29-02; Organization and Fishery conservation and 5-28-02; published 4-25- published 5-20-02 [FR 02- operations— management: 02 [FR 02-10171] 12177]

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HEALTH AND HUMAN 02; published 5-14-02 [FR Cook Inlet, AK; security by 5-28-02; published 3- SERVICES DEPARTMENT 02-12045] zone; comments due by 28-02 [FR 02-07416] Centers for Medicare & LABOR DEPARTMENT 5-28-02; published 4-25- Univair Aircraft Corp.; Medicaid Services Occupational Safety and 02 [FR 02-10175] comments due by 5-30- Medicare and medicaid Health Administration TRANSPORTATION 02; published 4-15-02 [FR 02-08989] programs: Wendell H. Ford Aviation DEPARTMENT Paid feeding assistance in Investment and Reform Act; Coast Guard Airworthiness standards: long term care facilities; implementation: Ports and waterways safety: Special conditions— requirements; comments Discrimination complaints Diablo Canyon Nuclear Cessna Aircraft Co. Model due by 5-28-02; published under section 519; Power Plant, Avila Beach, 501 and 551 series 3-29-02 [FR 02-07344] comments due by 5-31- CA; security zone; airplanes; comments INTERIOR DEPARTMENT 02; published 4-1-02 [FR comments due by 5-28- due by 5-29-02; 02-07636] 02; published 3-29-02 [FR published 4-29-02 [FR Indian Affairs Bureau 02-09943] LABOR DEPARTMENT 02-07713] Human services: Raytheon (Beechcraft) Pension and Welfare TRANSPORTATION Arrangement with States, Models V35, V35A, Benefits Administration DEPARTMENT Territories, or other S35, 35-C33A, E33A, agencies for relief of Employee Retirement Income Air travel; nondiscrimination on E33C airplanes; distress and social welfare Security Act: basis of disability: comments due by 5-29- of Indians; CFR part Delinquent Filer Voluntary Disability-related complaints; 02; published 4-29-02 removed; comments due Compliance Program; reporting requirements; [FR 02-09942] by 5-28-02; published 3- comments due by 5-28- comments due by 6-1-02; Class D airspace; comments 26-02 [FR 02-07208] 02; published 3-28-02 [FR published 2-14-02 [FR 02- due by 5-29-02; published INTERIOR DEPARTMENT 02-07514] 03216] 4-29-02 [FR 02-09851] Fish and Wildlife Service PENSION BENEFIT TRANSPORTATION TRANSPORTATION GUARANTY CORPORATION DEPARTMENT Endangered and threatened DEPARTMENT species: Administrative practice and Federal Aviation National Highway Traffic procedure: Administration Critical habitat Safety Administration designations— Appeals of agency Air carrier certification and Insurer reporting requirements: decisions; comments due operations: Kauai cave wolf spider Insurers required to file by 5-28-02; published 3- Antidrug and alcohol misuse and Kauai cave reports; list; comments 27-02 [FR 02-07297] prevention programs for amphipod; comments due by 5-28-02; published personnel engaged in due by 5-28-02; RAILROAD RETIREMENT 3-27-02 [FR 02-07367] specified aviation published 3-27-02 [FR BOARD Motor vehicle safety activities; comments due 02-06801] Railroad Retirement Act and standards: by 5-29-02; published 2- Railroad Unemployment Rear impact guard labels; INTERIOR DEPARTMENT 28-02 [FR 02-03847] Insurance Act: comments due by 5-28- Minerals Management Reconsideration and TRANSPORTATION 02; published 3-29-02 [FR Service appeals requests; DEPARTMENT 02-07568] Outer Continental Shelf; oil, procedures clarification; Federal Aviation gas, and sulphur operations: TRANSPORTATION comments due by 5-28- Administration DEPARTMENT Fixed and floating platforms; 02; published 3-29-02 [FR Airworthiness directives: Research and Special documents incorporated 02-07392] Airbus; comments due by 5- Programs Administration by reference; comments SECURITIES AND 31-02; published 5-1-02 Hazardous materials: due by 5-28-02; published EXCHANGE COMMISSION [FR 02-10245] 3-28-02 [FR 02-07588] Hazardous materials Investment companies: TRANSPORTATION transportation— INTERIOR DEPARTMENT Insurance company separate DEPARTMENT Carriage by aircraft National Park Service accounts registered as Federal Aviation requirements; revision; Special regulations: unit investment trusts Administration comments due by 5-31- Yellowstone National Park, offering variable life Airworthiness directives: 02; published 2-26-02 insurance policies; et al.; snowmobile Empresa Brasileira de [FR 02-04482] regulations; postponement; registration form; comments due by 6-1-02; Aeronautica S.A. TREASURY DEPARTMENT comments due by 5-28- (EMBRAER); comments Currency and financial 02; published 3-29-02 [FR published 4-23-02 [FR 02- 09457] due by 5-31-02; published transactions; financial 02-07707] 5-1-02 [FR 02-10246] reporting and recordkeeping TRANSPORTATION INTERIOR DEPARTMENT requirements: DEPARTMENT TRANSPORTATION Surface Mining Reclamation DEPARTMENT USA PATRIOT Act; Coast Guard and Enforcement Office Federal Aviation implementation— Drawbridge operations: Permanent program and Administration Anti-money laundering Florida; comments due by abandoned mine land Airworthiness directives: programs for financial 5-28-02; published 3-26- institutions; comments reclamation plan General Electric Co.; 02 [FR 02-07229] due by 5-29-02; submissions: comments due by 5-28- Illinois and Iowa; comments published 4-29-02 [FR Pennsylvania; comments 02; published 3-27-02 [FR due by 5-28-02; published 02-10452] due by 5-30-02; published 02-06912] 4-30-02 [FR 02-10516] 3-28-02 [FR 02-07356] Anti-money laundering Ports and waterways safety: TRANSPORTATION programs for money JUSTICE DEPARTMENT DEPARTMENT Boston Captain of Port services businesses; Immigration and Zone and Salem Harbors, Federal Aviation comments due by 5-29- Naturalization Service MA; safety and security Administration 02; published 4-29-02 Immigration: zones; comments due by Airworthiness directives: [FR 02-10453] User fee increase; 5-29-02; published 4-29- Hamilton Sundstrand Power Anti-money laundering comments due by 5-28- 02 [FR 02-10471] Systems; comments due programs for mutual

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funds; comments due with ‘‘PLUS’’ (Public Laws nara005.html. Some laws may enacted public laws. To by 5-29-02; published Update Service) on 202–523– not yet be available. subscribe, go to http:// 4-29-02 [FR 02-10454] 6641. This list is also hydra.gsa.gov/archives/ USA PATRIOT Act; available online at http:// S. 378/P.L. 107–182 To redesignate the Federal publaws-l.html or send E-mail impletmentation— www.nara.gov/fedreg/ to [email protected] Anti-money laundering plawcurr.html. building located at 3348 South Kedzie Avenue, in Chicago, with the following text programs for operators The text of laws is not message: of a credit card system; Illinois, as the ‘‘Paul Simon published in the Federal Chicago Job Corps Center’’. comments due by 5-29- Register but may be ordered 02; published 4-29-02 (May 21, 2002; 116 Stat. 584) SUBSCRIBE PUBLAWS-L in ‘‘slip law’’ (individual Last List May 22, 2002 Your Name. [FR 02-10455] pamphlet) form from the Superintendent of Documents, Note: This service is strictly LIST OF PUBLIC LAWS U.S. Government Printing Public Laws Electronic for E-mail notification of new Office, Washington, DC 20402 Notification Service This is a continuing list of (phone, 202–512–1808). The laws. The text of laws is not public bills from the current text will also be made (PENS) available through this service. session of Congress which available on the Internet from PENS cannot respond to have become Federal laws. It GPO Access at http:// PENS is a free electronic mail specific inquiries sent to this may be used in conjunction www.access.gpo.gov/nara/ notification service of newly address.

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