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2 III

Contents Federal Register Vol. 61, No. 232

Monday, December 2, 1996

Agriculture Department Comptroller of the Currency See Commodity Credit Corporation RULES See Farm Service Agency Fees assessment; national and District of Columbia banks: See Food and Consumer Service Non-lead banks; lower assessments, 64000–64002 See Grain Inspection, Packers and Stockyards Investment securities: Administration Federal regulatory reform, 63972–63986 See Rural Business-Cooperative Service Securities transactions; recordkeeping and confirmation See Rural Housing Service requirements streamlining, 63958–63969 See Rural Utilities Service NOTICES Copyright Office, Library of Congress Privacy Act: RULES Systems of records, 63815–63817 Copyright arbitration royalty panel rules and regulations; technical amendments, 63715–63718 Antitrust Division NOTICES Competitive impact statements and proposed consent Defense Department judgments: See Army Department Westinghouse Electric Corp. et al., 63861–63870 RULES Privacy Act; implementation, 63712–63715 Army Department NOTICES Agency information collection activities: NOTICES Submission for OMB review; comment request, 63831– Environmental statements; availability, etc.: 63832 Base realignment and closure— Meetings: Massachusetts Military Reservation, MA, 63832 Defense Environmental Response task force, 63832 Meetings: Science Board, 63832–63833 Defense Nuclear Facilities Safety Board Blind or Severely Disabled, Committee for Purchase From NOTICES People Who Are Meetings; Sunshine Act, 63833–63834 See Committee for Purchase From People Who Are Blind or Severely Disabled Energy Department See Federal Energy Regulatory Commission Children and Families Administration NOTICES NOTICES Meetings: Grants and cooperative agreements; availability, etc.: Environmental Management Site-Specific Advisory Social services block grants; State allotments, 63850 Board, 63834–63835

Civil Rights Commission Environmental Protection Agency NOTICES RULES Meetings; Sunshine Act, 63821 Clean Air Act: State operating permit programs— Coast Guard New York; correction, 63928 RULES Pesticides; tolerances in food, animal feeds, and raw Anchorage regulations: agricultural commodities: South Carolina; correction, 63715 Triadimefon, 63721–63726 Toxic substances: Commerce Department Significant new uses— See Foreign-Trade Zones Board Aliphatic polyisocyanates etc., 63726–63740 See International Trade Administration NOTICES See National Institute of Standards and Technology Agency information collection activities: See National Oceanic and Atmospheric Administration Proposed collection; comment request, 63840–63847 Meetings: Committee for Purchase From People Who Are Blind or Science Advisory Board, 63847 Severely Disabled NOTICES Procurement list; additions and deletions, 63818–63821 Equal Employment Opportunity Commission NOTICES Commodity Credit Corporation Agency information collection activities: RULES Proposed collection; comment request, 63847–63848 Loan and purchase programs: Price support levels— Executive Office of the President Tobacco, 63697–63702 See Presidential Documents IV Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Contents

Farm Service Agency Williams Natural Gas Co., 63836–63837 RULES Young Gas Storage Co. Ltd., 63837 Farm marketing quotas, acreage allotments, and production adjustments: Federal Maritime Commission Tobacco, 63697–63702 NOTICES Single family housing; reengineering and reinvention of Agreements filed, etc., 63848 direct section 502 and 504 programs: Correction, 63928 Federal Mine Safety and Health Review Commission NOTICES Federal Aviation Administration Meetings; Sunshine Act, 63872–63873 RULES Federal Railroad Administration Airworthiness directives: Israel Aircraft Industries, 63702–63704 NOTICES Agency information collection activities: Pratt & Whitney, 63706–63709 Proposed collection; comment request, 63917–63924 Textron Lycoming, 63704–63706 Transport category airplanes— Federal Reserve System Carbon dioxide; allowable concentration in cabins, NOTICES 63952–63956 Banks and bank holding companies: PROPOSED RULES Change in bank control, 63848 Airworthiness directives: Formations, acquisitions, and mergers, 63848–63849 Raytheon, 63762–63764 Class D airspace, 63764–63765 Fish and Wildlife Service Class E airspace, 63765–63769 NOTICES NOTICES Habitat conservation planning and incidental take Advisory circulars; availability, etc.: permitting process; handbook availability, 63854–63857 Aircraft— Voluntary industry distributor accreditation program, Food and Consumer Service 63916 NOTICES Meetings: Agency information collection activities: Aviation Rulemaking Advisory Committee Executive Proposed collection; comment request, 63817–63818 Committee, 63917 RTCA, Inc., 63917 Food and Drug Administration RULES Federal Communications Commission Animal drugs, feeds, and related products: RULES New drug applications— Practice and procedure: Pyrantel pamoate suspension, 63711–63712 Radio frequency radiation exposure guidelines Sulfaquinoxaline solution, 63711 Correction, 63758 Sponsor name and address changes— Radio stations; table of assignments: Biocraft Laboratories, Inc., et al., 63712 Wisconsin, 63759 Fort Dodge Animal Health, 63710–63711 PROPOSED RULES Hoechst Roussel Vet., 63710 Common carrier services: PROPOSED RULES Telecommunications Act of 1996; implementation— Medical devices: Infrastructure sharing, 63774–63778 Radiology devices; proposed classification— Practice and procedure: Medical image management, 63769–63774 Telecommunications Act of 1996; conformance— NOTICES Universal service, 63778–63809 Medical devices; premarket approval: Radio stations; table of assignments: UroMed Corp.; Reliance urinary control insert and sizing Mississippi, 63809 device, 63850–63851 Missouri, 63811 Foreign-Trade Zones Board Oklahoma, 63810 NOTICES Texas, 63809 Applications, hearings, determinations, etc.: Utah, 63810–63811 Arizona, 63821 Washington, 63810 Nevada, 63822 Television broadcasting: Wisconsin Advanced television (ATV) systems; digital television Robin Manufacturing U.S.A., Inc.; small internal- service, 63811–63812 combustion engines manufacturing plant, 63822

Federal Energy Regulatory Commission General Services Administration NOTICES NOTICES Electric rate and corporate regulation filings: Agency information collection activities: Termovalla S.C.A. et al.; correction, 63928 Submission for OMB review; comment request, 63831– Upper Peninsula Power Co. et al., 63837–63840 63832 Applications, hearings, determinations, etc.: Alabama-Tennessee Natural Gas Co., 63835 Grain Inspection, Packers and Stockyards Administration CNG Transmission Corp., 63835–63836 NOTICES Northern Natural Gas Co., 63836 Agency designation actions: Utah State University, 63836 Illinois et al., 63818 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Contents V

Health and Human Services Department Recreation management plans, etc.: See Children and Families Administration Interlakes Special Recreation Management Area, 63858 See Food and Drug Administration Withdrawal and reservation of lands: See Health Care Financing Administration Nevada, 63858–63860 See Health Resources and Services Administration New Mexico, 63860–63861 See National Institutes of Health See Public Health Service Legal Services Corporation NOTICES RULES Meetings: Class actions: Dietary Supplement Labels Commission, 63849 Recipients involvement prohibition, 63754–63755 Scientific misconduct findings; administrative actions: Eviction proceedings; restriction of representation: Li, Yi, 63849–63850 Persons engaged in illegal drug activity, 63756–63758 Non LSC funds use: Health Care Financing Administration Statutory restrictions; implementation, 63749–63754 RULES Redistricting: Medicare: Funds formerly unrestricted, 63755–63756 Medicare payment suspension charges and determination of allowable interest expenses, 63740–63749 Library of Congress See Copyright Office, Library of Congress Health Resources and Services Administration NOTICES Maritime Administration Agency information collection activities: NOTICES Proposed collection; comment request, 63851–63852 Agency information collection activities: Proposed collection; comment request, 63924–63925 Housing and Urban Development Department Marine hull insurance; foreign underwriters application, RULES 63925 Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mine Safety and Health Federal Review Commission Mac): See Federal Mine Safety and Health Review Commission Book-entry procedures; securities issuance, recordation, and transfer, 63944–63949 National Aeronautics and Space Administration PROPOSED RULES NOTICES Public and Indian housing: Agency information collection activities: Certificate and voucher programs (Section 8)— Submission for OMB review; comment request, 63831– Management assessment program, 63930–63941 63832 Interior Department National Archives and Records Administration See Fish and Wildlife Service NOTICES See Land Management Bureau Meetings: Internal Revenue Service Records of Congress Advisory Committee, 63873 NOTICES National Institute of Standards and Technology Agency information collection activities: Proposed collection; comment request, 63926–63927 NOTICES Meetings: International Trade Administration Computer System Security and Privacy Advisory Board, NOTICES 63830 Antidumping: Fresh cut flowers from— National Institutes of Health Mexico, 63822–63825 NOTICES Tapered roller bearings and parts, finished and Grants and cooperative agreements; availability, etc.: unfinished, from— KAI1 development in gene therapy protocols for Romania, 63826–63828 treatment of metastatic disease, 63852–63853 Committees; establishment, renewal, termination, etc.: Inventions, Government-owned; availability for licensing, Exporters’ Textile Advisory Committee, 63828 63853 Joint projects with U.S. Commercial centers in Sao Paulo, Brazil, Jakarta, Indonesia, and Shanghai, People’s National Oceanic and Atmospheric Administration Republic of China, 63828–63830 RULES Fishery conservation and management: Justice Department Alaska; fisheries of Exclusive Economic Zone— See Antitrust Division Bering Sea and Aleutian Islands groundfish, 63759– 63761 Labor Department PROPOSED RULES See Pension and Welfare Benefits Administration Federal regulatory review: Atlantic highly migratory species; public hearings, 63812 Land Management Bureau Fishery conservation and management: NOTICES Alaska; fisheries of Exclusive Economic Zone— Realty actions; sales, leases, etc.: Bering Sea and Aleutian Islands groundfish, 63812– New Mexico, 63857–63858 63814 VI Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Contents

NOTICES Rural Utilities Service Habitat conservation planning and incidental take RULES permitting process; handbook availability, 63854–63857 Single family housing; reengineering and reinvention of Meetings: direct section 502 and 504 programs: Mid-Atlantic Fishery Management Council, 63830–63831 Correction, 63928 South Atlantic Fishery Management Council, 63831 Securities and Exchange Commission Nuclear Regulatory Commission RULES NOTICES Securities: Environmental statements; availability, etc.: Customer limit orders; improvement of handling and James A. Fitzpatrick Nuclear Power Plant, 64004–64006 execution, 63709–63710 Meetings: NOTICES Inservice Testing Inspection Procedure 73756; workshop, Public utility holding company filings, 63876–63880 63873 Self-regulatory organizations; proposed rule changes: American Stock Exchange, Inc., 63884–63886 Chicago Board Options Exchange, Inc., 63886–63887 Pension and Welfare Benefits Administration National Securities Clearing Corp., 63887–63888 NOTICES Philadelphia Stock Exchange, Inc., 63888–63892 Agency information collection activities: Applications, hearings, determinations, etc.: Proposed collection; comment request, 63870–63872 AMREP Corp., 63874–63875 Boston Mutual Life, 63875 Pension Benefit Guaranty Corporation Kirby Corp., 63875–63876 RULES Medallion Financial Corp., 63880–63881 Single-employer plans: NASL Series Trust et al., 63881–63884 Reportable events and annual reporting requirements, 63988–63998 State Department NOTICES NOTICES Premiums payment and late payment penalty charges; International conferences: policy statement, 63874 Private-sector representatives on U.S. delegations, 63892– 63916 Personnel Management Office Surface Transportation Board PROPOSED RULES NOTICES Execepted service: Railroad operation, acquisition, construction, etc.: Schedule A authority for temporary organizations, 63762 Kansas Eastern Railroad, Inc., 63925 Nittany & Bald Eagle Railroad Co., 63925 Presidential Documents SEDA-COG Joint Rail Authority et al., 63925–63926 PROCLAMATIONS South Kansas & Oklahoma Railroad, Inc., 63926 Special observances: World AIDS Day (Proc. 6959), 63691–63692 Transportation Department ADMINISTRATIVE ORDERS See Coast Guard Tajikistan; findings with respect to Trade Agreement See Federal Aviation Administration (Presidential Determination No. 97–7 of November 26, See Federal Railroad Administration 1996), 63695 See Maritime Administration Uzbekistan; findings with respect to Trade Agreement See Surface Transportation Board (Presidential Determination No. 97–6 of November 26, 1996), 63693 Treasury Department See Comptroller of the Currency Public Health Service See Internal Revenue Service See Food and Drug Administration See Health Resources and Services Administration Veterans Affairs Department See National Institutes of Health RULES NOTICES Medical benefits: Meetings: Adult day health care, community residential care, and National Bioethics Advisory Commission, 63853–63854 veterans with alcohol and drug dependence disorders contract programs— Incorporations by reference; update, 63719–63720 Rural Business-Cooperative Service RULES Single family housing: reengineering and reinvention of Separate Parts In This Issue direct section 502 and 504 programs: Correction, 63928 Part II Department of Housing and Urban Development, 63930– Rural Housing Service 63941 RULES Single family housing; reengineering and reinvention of Part III direct section 502 and 504 programs: Department of Housing and Urban Development, 63944– Correction, 63928 63949 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Contents VII

Part IV Part IX Department of Transportation, Federal Aviation Nuclear Regulatory Commission, 64004–64006 Administration, 63952–63956

Part V Department of the Treasury, Comptroller of the Currency, Reader Aids 63958–63969 Additional information, including a list of public laws, Part VI telephone numbers, reminders, and finding aids, appears in Department of the Treasury, Comptroller of the Currency, the Reader Aids section at the end of this issue. 63972–63986

Part VII Pension Benefit Guarantee Corporation, 63988–63998 Electronic Bulletin Board Free Electronic Bulletin Board service for Public Law Part VIII numbers, Federal Register finding aids, and a list of Department of the Treasury, Comptroller of the Currency, documents on public inspection is available on 202–275– 64000–64002 1538 or 275–0920. VIII Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Contents

CFR PARTS AFFECTED IN THIS ISSUE

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

1 CFR 38 CFR 462...... 63944 17...... 63719 3 CFR 40 CFR 70...... 63928 Proclamations: 180...... 63721 6959...... 63691 721...... 63726 Administrative Orders: 42 CFR Presidential 401...... 63740 Determinations: 403...... 63740 No. 97±6 of November 405...... 63740 26, 1996 ...... 63693 411...... 63740 No. 97±7 of November 413...... 63740 26, 1996 ...... 63695 447...... 63740 493...... 63740 5 CFR 45 CFR Proposed Rules: 1610...... 63749 213...... 63762 1617...... 63754 1632...... 63755 7 CFR 1633...... 63756 723...... 63697 1464...... 63697 47 CFR 1806...... 63928 1...... 63758 1910...... 63928 2...... 63758 1922...... 63928 15...... 63758 1944...... 63928 24...... 63758 1951...... 63928 73...... 63759 1955...... 63928 97...... 63758 1956...... 63928 Proposed Rules: 1965...... 63928 Ch. I (2 documents)...... 63774, 3550...... 63928 63778 73 (7 documents) ...... 63809, 12 CFR 63810, 63811 1...... 63972 7...... 63972 50 CFR 8...... 63700 679...... 63759 12...... 63958 Proposed Rules: 285...... 63812 14 CFR 630...... 63812 25...... 63952 644...... 63812 39 (4 documents) ...... 63702, 678...... 63812 63704, 63706, 63707 679 (2 documents) ...... 63812, Proposed Rules: 63814 39...... 63762 71 (5 documents) ...... 63764, 63765, 63766, 63767, 63768 17 CFR 240...... 63709 21 CFR 510 (2 documents) ...... 63710 520 (2 documents) ...... 63711 524...... 63712 Proposed Rules: 892...... 63769 24 CFR 81...... 63944 Proposed Rules: 985...... 63930 29 CFR 4001...... 63988 4043...... 63988 4065...... 63988 32 CFR 318...... 63712 33 CFR 110...... 63715 37 CFR 251...... 63715 252...... 63715 257...... 63715 259...... 63715 63691

Federal Register Presidential Documents Vol. 61, No. 232

Monday, December 2, 1996

Title 3— Proclamation 6959 of November 26, 1996

The President World AIDS Day, 1996

By the President of the United States of America

A Proclamation We dedicate World AIDS Day to the memory of those we have lost to HIV and AIDS and to our quest to help those who are living with this disease. The theme of this ninth observance of World AIDS Day, ‘‘One World, One Hope,’’ reminds us that AIDS is a global pandemic and that HIV recognizes no geographic boundaries. Today, an estimated 21.8 million adults and children worldwide are living with HIV/AIDS, and we anticipate that as many as 3 million more will become infected with HIV in this year alone. Of the almost 6 million men, women, and children around the world who have died of AIDS, more than 330,000 have been Americans. Each day, 100 of our fellow citizens lose their lives to this disease, and nearly 200 more are diagnosed with AIDS. The threat that HIV and AIDS pose to our Nation and the world has demanded a national response involving government, industry, communities, families, and individuals. We have put our best scientific minds to work on research, and our most talented public health professionals have strived to prevent the spread of this epidemic. Parents, teachers, clergy, and other civic leaders have worked together to educate and protect young people and other groups who are so vulnerable to—and devastated by—the scourge of HIV and AIDS. At long last, this investment of our time, attention, and resources in science and public health has begun to pay dividends. The past 12 months have offered us reasons for real hope and optimism after so many years of sadness and despair. New treatments, approved in record time, are showing remark- able results in arresting the development of HIV disease and are beginning to improve the health of those who are living with the virus. We have worked hard to provide access to these promising treatments for as many people as possible. We have tripled funding for AIDS drug assistance pro- grams, and we have increased support for the Ryan White Comprehensive AIDS Resources Emergency Act by 30 percent during the past 12 months. We have also preserved the Medicaid program, which provides care to more than half of Americans living with AIDS, including more than 90 percent of the children with AIDS. We are heartened by our success in reducing the risk of perinatal transmission of HIV from mother to child. For the first time since this epidemic began in 1981, we have seen an actual reduction in the number of infants born with HIV. It is within our grasp to virtually eradicate pediatric HIV disease by the end of this century. Our efforts to prevent other types of HIV trans- mission are also showing signs of progress. But we must remain vigilant to the continuing need for prevention, reducing the number of new infections year by year until the day when we can eliminate this disease. As we move forward in this battle, we do so with renewed hope for the future. Let us observe World AIDS Day by intensifying our search for an end to the epidemic, for a cure for those who are living with HIV and AIDS, and for a vaccine to protect all citizens of the world from this relentless killer. And let us reaffirm our commitment to protecting the rights of all those who are living with HIV. 63692 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Presidential Documents

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim December 1, 1996, as World AIDS Day, and I invite the Governors of the States, the Commonwealth of Puerto Rico, officials of other territories subject to the jurisdiction of the United States, and the American people to join me in reaffirming our commitment to combating HIV and AIDS and to reach out to those living with this disease. IN WITNESS WHEREOF, I have hereunto set my hand this twenty-sixth day of November, in the year of our Lord nineteen hundred and ninety- six, and of the Independence of the United States of America the two hundred and twenty-first.

[FR Doc. 96–30780 œ– Filed 11–29–96; 8:45 am] Billing code 3195–01–P Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Presidential Documents 63693 Presidential Documents

Presidential Determination No. 97–6 of November 26, 1996

Findings With Respect to the Trade Agreement With Uzbekistan

Memorandum for the United States Trade Representative

Pursuant to my authority under subsection 405(b)(1) of the Trade Act of 1974 (19 U.S.C. 2435(b)(1)), I have determined that actual or foreseeable reductions in United States tariffs and nontariff barriers to trade resulting from multilateral negotiations are satisfactorily reciprocated by Uzbekistan. I have further found that a satisfactory balance of concessions in trade and services has been maintained during the life of the Agreement on Trade Relations between the United States of America and the Republic of Uzbekistan. You are authorized and directed to publish this memorandum in the Federal Register. œ–

THE WHITE HOUSE, Washington, November 26, 1996. [FR Doc. 96–30728 Filed 11–29–96; 8:45 am] Billing code 3190–01–M Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Presidential Documents 63695 Presidential Documents

Presidential Determination No. 97–7 of November 26, 1996

Findings With Respect to the Trade Agreement With Tajikistan

Memorandum for the United States Trade Representative

Pursuant to my authority under subsection 405(b)(1) of the Trade Act of 1974 (19 U.S.C. 2435(b)(1)), I have determined that actual or foreseeable reductions in United States tariffs and nontariff barriers to trade resulting from multilateral negotiations are satisfactorily reciprocated by Tajikistan. I have further found that a satisfactory balance of concessions in trade and services has been maintained during the life of the Agreement on Trade Relations between the United States of America and the Republic of Tajikistan. You are authorized and directed to publish this memorandum in the Federal Register. œ–

THE WHITE HOUSE, Washington, November 26, 1996. [FR Doc. 96–30729 Filed 11–29–96; 8:45 am] Billing code 3190–01–M 63697

Rules and Regulations Federal Register Vol. 61, No. 232

Monday, December 2, 1996

This section of the FEDERAL REGISTER 133.9; Virginia sun-cured (type 37), Background contains regulatory documents having general 128.8; cigar-filler and binder (types 42– This final rule is issued pursuant to applicability and legal effect, most of which 44 and 53–55), 112.0; and cigar-filler are keyed to and codified in the Code of the provisions of the 1938 Act and the (type 46), 88.1. Price supports are 1949 Act. Federal Regulations, which is published under generally necessary to maintain grower 50 titles pursuant to 44 U.S.C. 1510. On March 5, 1996, the Secretary income. However, with respect to cigar- determined and announced the national The Code of Federal Regulations is sold by filler (type 46) there will be no quotas marketing quotas and price support the Superintendent of Documents. Prices of or price support for the 1996 and levels for the 1996 crops of fire-cured new books are listed in the first FEDERAL subsequent marketing years, unless (type 21), fire-cured (types 22–23), dark REGISTER issue of each week. conditions change, as a result of the air-cured (types 35–36), Virginia sun- recent quota referendum on that type of cured (type 37), cigar-filler and binder tobacco. (types 42–44 and 53–55), and cigar-filler DEPARTMENT OF AGRICULTURE EFFECTIVE DATE: March 5, 1996. (type 46) tobaccos. A number of related Farm Service Agency determinations were made at the same FOR FURTHER INFORMATION CONTACT: time which this final rule affirms. On 7 CFR Part 723 Robert L. Tarczy, Farm Service Agency the same date, the Secretary also (FSA), U.S. Department of Agriculture announced that referenda would be Commodity Credit Corporation (USDA), room 5750, South Building, conducted by mail with respect to cigar- STOP 0514, P.O. Box 2415, Washington, filler and binder (types 42–44; 53–55) 7 CFR Part 1464 DC 20013–2415, 202–720–5346. and (at polling places for) cigar filler RIN 0560±AE46 SUPPLEMENTARY INFORMATION: (type 46) tobaccos. During March 25–28, 1996, eligible 1996 Marketing Quotas and Price Executive Order 12866 producers of cigar-filler and binder Support Levels for Fire-Cured (Type This final rule has been determined to (types 42–44; 53–55) and cigar-binder 21), Fire-Cured (Types 22±23), Dark be significant for purposes of Executive (type 46) tobacco voted in separate Air-Cured (Types 35±36), Virginia Sun- Order 12866 and, therefore, has been referenda to determine whether such Cured (Type 37), Cigar-Filler and reviewed by OMB. producers disapprove marketing quotas Binder (Types 42±44 and 53±55), and for the 1996, 1997, and 1998 marketing Cigar-Filler (Type 46) Tobaccos Federal Assistance Program years (MYs) for these tobaccos. Of the producers voting, 78.7 percent favored AGENCIES: Farm Service Agency and The title and number of the Federal marketing quotas for cigar-filler and Commodity Credit Corporation, USDA. Assistance Program, as found in the binder tobacco while no one voted in Catalog of Federal Domestic Assistance, ACTION: Final rule. the cigar-filler (type 46) referendum. to which this rule applies, are Accordingly, quotas and price supports SUMMARY: The purpose of this final rule Commodity Loans and Purchases— for cigar-filler and binder tobacco are in is to codify the national marketing 10.051. quotas and price support levels for the effect for the 1996 MY. As it appears 1996 crops for several kinds of tobacco Executive Order 12778 that there is no interest in growing cigar- announced by press release on March 5, filler (type 46) tobacco and that there are This final rule has been reviewed in no current producers of this type of 1996. accordance with Executive Order 12778, In accordance with the Agricultural tobacco, it has been determined that Civil Justice Reform. The provisions of Adjustment Act of 1938, as amended quotas and price support shall not be in this rule do not preempt State laws, are (the 1938 Act), the Secretary determined effect for the 1996 and subsequent MYs. not retroactive, and do not involve the 1996 marketing quotas to be as For the same reasons, it has been administrative appeals. follows: fire-cured (type 21), 1.97 determined that there shall not be any million pounds; fire-cured (types 22– Regulatory Flexibility Act further referenda held for this type 23), 40.6 million pounds; dark air-cured unless production resumes and a (types 35–36), 9.2 million pounds; It has been determined that the petition for a reinstatement of quotas is Virginia sun-cured (type 37), 148,000 Regulatory Flexibility Act is not submitted by one-fourth of the then- pounds; cigar-filler and binder (types applicable because Farm Service current producers or by such other 42–44 and 53–55), 8.9 million pounds; Agency (FSA) is not required by 5 number of producers as appears to make and cigar-filler (type 46), zero pounds. U.S.C. 553 or any other provision of law the holding of a referenda worthwhile Quotas are necessary to adjust the to publish a notice of proposed and appropriate. production levels of certain tobaccos to rulemaking with respect to the subject In accordance with section 312(a) of more fully reflect supply and demand of these determinations. the 1938 Act, the Secretary of conditions, as provided by statute. Paperwork Reduction Act Agriculture was required to proclaim In addition, in accordance with the not later than March 1 of any MY with Agricultural Act of 1949 as amended The amendments to 7 CFR parts 723 respect to any kind of tobacco, other (the 1949 Act), the Secretary determined and 1464 set forth in this final rule do than burley and flue-cured tobacco, a the 1996 levels of support to be as not contain information collections that national marketing quota for any such follows (in cents per pound): fire-cured require clearance through the Office of kind of tobacco for each of the next 3 (type 21), 145.5; fire-cured (types 22– Management and Budget under the MYs if such MY is the last year of 3 23), 155.7; dark air-cured (types 35–36), provisions of 44 U.S.C. Chapter 35. consecutive years for which marketing 63698 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations quotas previously proclaimed will be in Section 313(g) of the 1938 Act interested persons were requested to effect. With respect to cigar-filler and provides that the Secretary may convert comment with respect to setting quotas binder (types 42–44; 53–55) and cigar- the national marketing quota into a for the tobacco kinds addressed in the filler (type 46) tobaccos, the 1995 MY is national acreage allotment for notice. the last year of 3 such consecutive years. apportionment to individual farms. Discussion of Comments Accordingly, subject to producer Since producers of these kinds of approval, marketing quotas for these tobacco generally produce considerably Twenty-six written responses were tobaccos have been proclaimed for each less than their respective national received during the comment period of the 3 MYs beginning October 1, 1996; acreage allotments allow, a larger quota which ended February 16, 1996. A October 1, 1997; and October 1, 1998. is necessary to make available summary of these comments by kind of As indicated, however, only types 42– production equal to the reserve supply tobacco follows: 44; 53–55 producers approved the level. Further, the amount of the (1) Fire-cured (type 21) tobacco. Five quotas. national marketing quota so announced comments were received. They all Because of producer approval of may, not later than the following March recommended no change from the 1995 quotas, sections 312 and 313 of the 1938 1, be increased by not more than 20 quota. Act required that the Secretary also percent if the Secretary determines that (2) Fire-cured (types 22–23) tobacco. announce the reserve supply level and such increase is necessary in order to Eight comments were received. Five the total supply of fire-cured (type 21), meet market demands or to avoid undue recommended no change from the 1995 fire-cured (types 22–23), dark air-cured restriction of marketings in adjusting the marketing quota, while the three others (types 35–36), Virginia sun-cured (type total supply to the reserve supply level. recommended a small increase in quota. 37), cigar-filler and binder (types 42–44 Section 301(b)(14)(B) of the 1938 Act (3) Dark air-cured (types 35–36) and 53–55), and cigar-filler (type 46), defines ‘‘reserve supply level’’ as the tobacco. Seven comments were tobaccos for the MY beginning October normal supply, plus 5 percent thereof, received. Five recommended no change 1, 1996, and for these tobaccos, the to ensure a supply adequate to meet and the others recommended a slight amounts of the national marketing domestic consumption and export needs decrease in the quota. quotas, national acreage allotments, in years of drought, flood, or other (4) Virginia sun-cured (type 37) national acreage factors for apportioning adverse conditions, as well as in years tobacco. Five comments were received. the national acreage allotments (less of plenty. ‘‘Normal supply’’ is defined All recommended a 10-percent increase reserves) to old farms, and the amounts in section 301(b)(10)(B) of the 1938 Act in quota. of the national reserves and parts as a normal year’s domestic (5) Cigar-filler and binder (types 42– thereof available for (1) new farms and consumption and exports, plus 175 44 and 53–55) tobacco. One comment (2) making corrections and adjusting percent of a normal year’s domestic use was received, recommending no change inequities in old farm allotments. and 65 percent of a normal year’s in quota. However, these determinations were exports as an allowance for a normal (6) Cigar filler (type 46) tobacco. No subject to those referenda which were year’s carryover. comments were received. Normal year’s domestic consumption required to be held this year. Quota and Related Determinations Also, under the 1949 Act, price is defined in section 301(b)(11)(B) of the Based on a review of these comments support is required to be made available 1938 Act as the average quantity and the latest available statistics of the for each crop of a kind of tobacco for produced and consumed in the United Federal Government, which appear to which marketing quotas are in effect or States during the 10 MYs immediately be the most reliable data available, the for which marketing quotas have not preceding the MY in which such following determinations were made for been disapproved by producers. With consumption is determined, adjusted for the six subject tobacco kinds: respect to the 1996 crop of the six kinds current trends in such consumption. Normal year’s exports is defined in (1) Fire-Cured (type 21) Tobacco of tobacco that are the subject of this The average annual quantity of fire- notice of final rulemaking, the section 301(b)(12) of the 1938 Act as the average quantity produced in and cured (type 21) tobacco produced in the respective maximum level of support for United States that is estimated to have six of those kinds is determined in exported from the United States during the 10 MYs immediately preceding the been consumed in the United States accordance with section 106 of the 1949 during the 10 MYs preceding the 1995 Act. Announcement of the price support MY in which such exports are determined, adjusted for current trends MY was approximately 1.1 million levels for these six kinds of tobacco are pounds. The average annual quantity normally made before the planting in such exports. In accordance with section 313(g) of produced in the United States and seasons. For the 1996 crops, the the 1938 Act, the Secretary is authorized exported from the United States during announcements were made on March 5, to establish a national reserve from the the 10 MYs preceding the 1995 MY was 1996, at the same time as the quota national acreage allotment in an amount 2.5 million pounds (farm sales weight announcements, and subject to producer equivalent to not more than 1 percent of basis). Both domestic use and exports approval for those types which were the national acreage allotment for the have trended sharply downward. subject to a 1996 referendum. purpose of making corrections in farm Because of these considerations, a Quotas and Related Determinations acreage allotments, adjusting for normal year’s domestic consumption inequities, and for establishing has been determined to be 0.7 million Statutory Provisions allotments for new farms. The Secretary pounds, and a normal year’s exports Section 312(b) of the 1938 Act has determined that the national have been determined to be 1.59 million provides, in part, that the national reserve, noted herein, for the 1996 crop pounds. Application of the formula marketing quota for a kind of tobacco is of each of these kinds of tobacco is prescribed by section 301(b)(14)(B) of the total quantity of that kind of tobacco adequate for these purposes. the 1938 Act results in a reserve supply that may be marketed such that a supply level of 4.78 million pounds. of such tobacco equal to its reserve The Proposed Rule Manufacturers and dealers reported supply level is made available during On February 12, 1996, a proposed rule stocks held on October 1, 1995, of 3.5 the MY. was published (61 FR 5316) in which million pounds. The 1995 crop is Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63699 estimated to be 1.5 million pounds. Manufacturers and dealers reported Because of these considerations, a Therefore, total supply for the 1995 MY stocks held on October 1, 1995, of 80.5 normal year’s domestic consumption is 5.0 million pounds. During the 1995 million pounds. The 1995 crop is has been determined to be 10.5 million MY, it is estimated that disappearance estimated to be 38.3 million pounds. pounds, and a normal year’s exports will total approximately 1.8 million Therefore, total supply for the 1995 MY have been determined to be 1.6 million pounds. Deducting this disappearance is 118.8 million pounds. During the pounds. Application of the formula from total supply results in a 1996 MY 1995 MY, it is estimated that prescribed by section 301(b)(14)(B) of beginning stock estimate of 3.2 million disappearance will total approximately the 1938 Act results in a reserve supply pounds. 36.0 million pounds. Deducting this level of 33.2 million pounds. The difference between the reserve disappearance from total supply results supply level and the estimated Manufacturers and dealers reported in a 1996 MY beginning stock estimate stocks held on October 1, 1995, of 27.3 carryover on October 1, 1996, is 1.58 of 82.8 million pounds. million pounds. This represents the The difference between the reserve million pounds. The 1995 crop is quantity that may be marketed that will supply level and the estimated estimated to be 8.9 million pounds. make available during the 1996 MY a carryover on October 1, 1996, is 32.2 Therefore, total supply for the 1995 MY supply equal to the reserve supply level. million pounds. This represents the is 36.2 million pounds. During the 1995 About 80 percent of the announced quantity that may be marketed that will MY, it is estimated that disappearance national marketing quota is expected to make available during the 1996 MY a will total approximately 10.0 million be produced. supply equal to the reserve supply level. pounds. Deducting this disappearance Accordingly, it has been determined About 95 percent of the announced from total supply results in a 1996 MY that a 1996 national marketing quota of national marketing quota is expected to beginning stock estimate of 26.2 million 1.97 million pounds is necessary to be produced. Accordingly, it has been pounds. make available production of 1.58 determined that a 1996 national The difference between the reserve million pounds. Thus, the national marketing quota of 33.8 million pounds supply level and the estimated marketing quota for the 1996 MY is 1.97 is necessary to make available carryover on October 1, 1996, is 7.0 million pounds. production of 32.2 million pounds. million pounds. This represents the In accordance with section 313(g) of In accordance with section 312(b) of quantity that may be marketed that will the 1938 Act, dividing the 1996 national the 1938 Act, it has been further make available during the 1996 MY a marketing quota of 1.97 million pounds determined that the 1996 national supply equal to the reserve supply level. by the 1991–95, 5-year national average marketing quota must be increased by About 90 percent of the announced yield of 1,496 pounds per acre results in 20 percent in order to avoid undue national marketing quota is expected to a 1996 national acreage allotment of restriction of marketings. Thus, the be produced. Accordingly, it has been 1,316.84 acres. national marketing quota for the 1996 Pursuant to the provisions of section determined that a national marketing MY is 40.6 million pounds. quota of 7.7 million pounds is necessary 313(g) of the 1938 Act, a national In accordance with section 313(g) of to make available production of 7.0 acreage factor of 1.0 is determined by the 1938 Act, dividing the 1996 national million pounds. In accordance with dividing the national acreage allotment marketing quota of 40.6 million pounds section 312(b) of the 1938 Act, it has for the 1996 MY, less a national reserve by the 1991–95, 5-year average yield of been further determined that the 1996 of 9.15 acres, by the total of the 1996 2,462 pounds per acre results in a 1996 national marketing quota should be preliminary farm acreage allotments national acreage allotment of 16,490.66 increased by 20 percent in order to (previous year’s allotments). The acres. preliminary farm acreage allotments Pursuant to the provisions of section avoid undue restriction of marketings. reflect the factors specified in section 313(g) of the 1938 Act, a national This results in a national marketing 313(g) of the 1938 Act for apportioning acreage factor of 1.0 is determined by quota for the 1996 MY of 9.2 million the national acreage allotment, less the dividing the national acreage allotment pounds. national reserve, to old farms. (Those for the 1996 MY, less a national reserve In accordance with section 313(g) of with access to an ‘‘old’’ allotment.) of 1.37 acres, by the total of the 1996 the 1938 Act, dividing the 1996 national (2) Fire-Cured (types 22–23) Tobacco preliminary farm acreage allotments marketing quota of 9.2 million pounds The average annual quantity of fire- (previous year’s allotments). The by the 1991–95, 5-year average yield of cured (types 22–23) tobacco produced preliminary farm acreage allotments 2,274 pounds per acre results in a 1996 in the United States that is estimated to reflect the factors specified in section national acreage allotment of 4,045.73 have been consumed in the United 313(g) of the 1938 Act for apportioning acres. States during the 10 years preceding the the national acreage allotment, less the Pursuant to the provisions of section 1995 MY was approximately 18.3 national reserve, to old farms. 313(g) of the 1938 Act, a national million pounds. The average annual (3) Dark Air-Cured (types 35–36) acreage factor of 0.95 is determined by quantity produced in the United States Tobacco dividing the national acreage allotment and exported during the 10 MYs The average annual quantity of dark for the 1996 MY, less a national reserve preceding the 1995 MY was 16.4 million air-cured (types 35–36) tobacco of 0.26 acre, by the total of the 1996 pounds (farm sales weight basis). Both produced in the United States that is preliminary farm acreage allotments domestic use and exports have trended estimated to have been consumed in the (previous year’s allotments). The upward recently. Because of these United States during the 10 MYs preliminary farm acreage allotments considerations, a normal year’s preceding the 1995 MY was reflect the factors specified in section domestic consumption has been approximately 9.8 million pounds. The 313(g) of the 1938 Act for apportioning determined to be 28.0 million pounds, average annual quantity produced in the the national acreage allotment, less the and a normal year’s exports have been United States and exported from the national reserve, to old farms. determined to be 19.7 million pounds. United States during the 10 MYs Application of the formula prescribed preceding the 1995 MY was 1.8 million (4) Virginia Sun-Cured (type 37) by section 301(b)(14)(B) of the 1938 Act pounds (farm sales weight basis). Tobacco results in a reserve supply level of 115.0 Domestic use has been erratic while The average annual quantity of million pounds. exports have trended downward. Virginia sun-cured (type 37) tobacco 63700 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations produced in the United States that is preliminary farm acreage allotments This results in a 1996 national estimated to have been consumed in the (previous year’s allotments). The marketing quota of 8.9 million pounds. United States during the 10 MYs preliminary farm acreage allotments In accordance with section 313(g) of preceding the 1995 MY was reflect the factors specified in section the 1938 Act, dividing the 1996 national approximately 150,000 pounds. The 313(g) of the 1938 Act for apportioning marketing quota of 8.9 million pounds average annual quantity produced in the the national acreage allotment, less the by the 1991–95, 5-year average yield of United States and exported from the national reserve, to old farms. 1,894 pounds per acre results in a 1996 United States during the 10 MYs (5) Cigar-Filler and Binder (types 42– national acreage allotment of 4,699.05 preceding the 1995 MY was 44 and 53–55) Tobacco acres. approximately 110,000 pounds (farm The average annual quantity of cigar- sales weight basis). Both domestic use filler and binder (types 42–44 and 53– Pursuant to the provisions of section and exports have shown a sharp 55) tobacco produced in the United 313(g), of the 1938 Act, a national factor downward trend. Because of the States that is estimated to have been of 1.0 is determined by dividing the considerations, a normal year’s consumed in the United States during national acreage allotment for the 1996 domestic consumption has been the 10 MYs preceding the 1995 MY was MY, less a national reserve of 9.99 acres, determined to be 55,000 pounds, and a approximately 15.2 million pounds. The by the total of the 1996 preliminary farm normal year’s exports have been average annual quantity produced in the acreage allotments (previous year’s determined to be 13,000 pounds. United States and exported from the allotments). The preliminary farm Application of the formula prescribed United States during the 10 MYs acreage allotments reflect the factors by section 301(b)(14)(B) of the 1938 Act preceding the 1995 MY was less than specified in section 313(g) of the 1938 results in a reserve supply level of 100,000 pounds (farm sales weight). Act for apportioning the national 193,000 pounds. Domestic use has trended downward acreage allotment, less the national Manufacturers and dealers reported and exports are very small. Thus, a reserve, to old farms. stocks held on October 1, 1995, of normal year’s domestic consumption (6) Cigar-Filler (type 46) Tobacco 100,000 pounds. The 1995 crop is has been determined to be 9.2 million There is no demand for cigar-filler estimated to be 80,000 pounds. pounds, and a normal year’s exports has (type 46) tobacco. Accordingly, the Therefore, total supply for the 1995 MY been determined to be 100,000 pounds. reserve supply level is zero. The is 180,000 pounds. During the 1995 MY, Application of the formula prescribed estimated carryover at the start of MY it is estimated that disappearance will by section 301(b)(14)(B) of the 1938 Act total approximately 110,000 pounds. results in a reserve supply level of 26.8 1996 is less than 0.1 million pounds. Deducting this disappearance from total million pounds. However, because of the referendum supply results in a 1996 MY beginning Manufacturers and dealers reported result, there will be no marketing quota, stock estimate of 70,000 pounds. stocks held on October 1, 1995, of 24.6 or price support, for this type for 1996 The difference between the reserve million pounds. The 1995 crop is and subsequent MYs, unless a petition supply level and the estimated estimated to be 6.2 million pounds. for reinstatement of quota is filed. carryover on October 1, 1995, is 123,000 Therefore, total supply for the 1995 MY Because the estimated carryover pounds. This represents the quantity is 30.8 million pounds. During the 1995 exceeds the reserve supply level, the that may be marketed that will make MY, it is estimated that disappearance quantity of tobacco that may be available during the 1996 MY a supply will total about 9.0 million pounds. marketed during MY 1996 and the 1996 equal to the reserve supply level. Over Deducting this disappearance from total acreage allotment are both zero. 80 percent of the announced national supply results in a 1996 MY beginning (7) Referendum Results for Cigar- marketing quota is expected to be stock estimate of 21.8 million pounds. Filler and Binder (types 42–44; 53–55) The difference between the reserve produced. and Cigar-Filler (type 46 ) Tobaccos Accordingly, it has been determined supply level and the estimated that a 1996 national marketing quota of carryover on October 1, 1996, is 5.0 Because of the results of producer 148,000 pounds is necessary to make million pounds. This represents the referenda, marketing quotas shall be in available production of 123,000 pounds. quantity that may be marketed that will effect for the 1996 MY for cigar-filler Thus, the national marketing quota for make available during the 1996 MY a and binder (types 42–44; 53–55) the 1996 MY is 148,000 pounds. supply equal to the reserve supply level. tobacco, but not for cigar-filler (type 46) In accordance with section 313(g) of Slightly less than 70 percent of the tobacco. In a referendum held March the 1938 Act, dividing the 1996 national announced national marketing quota is 25–28, 1996, 78.7 percent of producers marketing quota of 148,000 pounds by expected to be produced. of cigar-filler and binder (types 42–44; the 1991–95, 5-year average yield of Accordingly, it has been determined 53–55) tobacco, voted in favor of 1,342 pounds per acre results in a 1996 that a 1996 national marketing quota of marketing quotas. However, no votes national acreage allotment of 110.28 7.4 million pounds is necessary to make were cast in the March 26, 1996, acres. available production of 5.0 million referendum held for producers of cigar Pursuant to the provisions of section pounds. In accordance with section binder (type 46) tobacco. As indicated, 313(g) of the 1938 Act, a national 312(b) of the 1938 Act, it has been it was determined for that reason that no acreage factor of 1.10 is determined by further determined that the 1996 quota would be set until a petition for dividing the national acreage allotment national marketing quota must be quotas is filed. The regulations adopted for the 1996 MY, less a national reserve increased by 20 percent in order to in this notice have been drafted of 0.69 acre, by the total of the 1996 avoid undue restriction of marketings. accordingly.

Percent yes Kind of tobacco Total votes Yes votes No votes votes

Cigar-filler and binder (types 42±44; 53±55) ...... 1084 853 231 78.7 Cigar-filler (type 46) ...... 0 0 0 0 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63701

Price Support other kinds of quota tobacco. In the 1949 Act for the respective kind of determining whether the supply of any tobacco to more accurately reflect the Statutory Provisions grade of any kind of tobacco of a crop market value and improve the Section 106(f)(6)(A) of the 1949 Act will be excessive, the Secretary is marketability of such tobacco. provides that the level of support for the required to consider the domestic Accordingly, the price support level for 1996 crop of a kind of tobacco (other supply, including domestic inventories, a kind of tobacco set forth in this rule than flue-cured and burley) shall be the the amount of such tobacco pledged as could be reduced if such a request is level in cents per pound at which the security for price support loans, and made. 1995 crop of such kind of tobacco was anticipated domestic and export supported, plus or minus, as demand, based on the maturity, Price Support Determinations appropriate, the amount by which (i) the uniformity, and stalk position of such The following levels of price support basic support level for the 1996 crop, as tobacco. for the 1995 crops of various kinds of determined under section 106(b) of the Section 106(b) of the 1949 Act tobacco, which were determined in 1949 Act, is greater or less than (ii) the provides that the ‘‘basic support level’’ accordance with section 106(f)(6)(A) of support level for the 1995 crop, as for any year is determined by the 1949 Act, are as follows: determined under section 106(b). To the multiplying the support level for the extent that the price support level 1959 crop of such kind of tobacco by the Support would be increased as a result of that ratio of the average of the index of level comparison, section 106(f) provides that prices paid by farmers, including wage Kind and type (cents the increase may be modified using the per rates, interest, and taxes (referred to as pound) provisions of 106(d). Under 106(d), the the ‘‘parity index’’) for the 3 previous Secretary may reduce the level of calendar years to the average index of Virginia fire-cured (type 21) ...... 143.0 support for grades the Secretary such prices paid by farmers, including KY±TN fire-cured (types 22±23) ..... 151.8 determines will likely be in excess wage rates, interest, and taxes for the Dark air-cured (types 35±36) ...... 130.4 supply so long as the weighted level of 1959 calendar year. Virginia sun-cured (type 37) ...... 126.5 support for all grades maintains at least In addition, section 106(f)(6)(B) of the Cigar-filler and binder (types 42±44 65 percent of the increase in the price 1949 Act provides that to the extent and 53±55) ...... 110.1 support (from the previous year). The requested by the board of directors of an Cigar-filler (type 46) ...... 86.1 Secretary must consult with the association, through which price appropriate tobacco associations and support is made available to producers For the 1996 crop year: take into consideration the supply and (producer association), the Secretary (1) Average parity indexes for anticipated demand for the tobacco, may reduce the support level calendar year periods 1992–1994 and including the effect of the action on determined under section 106(f)(6)(A) of 1993–1995 are as follows:

Year Index Year Index

1992 ...... 1,329 1993 ...... 1,355 1993 ...... 1,355 1994 ...... 1,394 1994 ...... 1,394 1995 ...... 1,420 Average ...... 1,359 Average ...... 1,390

(2) Average parity index, calendar (3) 1995 ratio of 1,359 to 298=4.56; (4) Ratios times 1959 support levels year 1959=298. 1995 ratio of 1,359 to 298=4.66. and 1996 increase in basic support levels are as follows:

1959 sup- Basic support level 1 Increase from 1995 to Kind and type port level 1996 ¢ ¢ (¢/lb.) 1995 ( /lb.) 1996 ( /lb.) 100% (¢/lb.) 65% (¢/lb.)

VA 21 ...... 38.8 176.9 180.8 3.9 2.5 KY±TN 22±23 ...... 38.8 176.9 180.8 3.9 2.5 KY±TN 35±36 ...... 34.5 157.3 160.8 3.5 2.3 VA 37 ...... 34.5 157.3 160.8 3.5 2.3 Cigar-filler and binder 42±44, 54±55 ...... 28.6 130.4 133.3 2.9 1.9 Cigar-filler 46 ...... 29.7 135.4 138.4 3.0 2.0 1 1995 ratio is 4.56, 1996 ratio is 4.66.

With respect to 106(d) adjustments, Virginia sun-cured (type 37) have cured tobacco (type 37), and cigar-filler for MY 1996, the flue-cured support significant loan stocks relative to use for and binder tobacco (types 42–44 and level was increased by 65 percent of the MY 1995. 53–55), the MY 1996 support levels formula increase to within about 12 In addition, the loan associations for consist of the 1995 support levels which percent of 1995’s average market price. cigar filler and binder (types 42–44; 53– were increased by 65 percent of the For the kinds of tobacco subject of this 55) have accepted lower price support difference between the 1996 ‘‘basic rule, MY 1995 market prices were levels so their tobacco may remain support level’’ and the 1995 ‘‘basic further above the support level, and competitive with imports and tobaccos support level.’’ The supply-use ratios for overall loan receipts remained low. not under support. Therefore, for fire- Kentucky-Tennessee fire-cured (types Only Virginia Fire-Cured (type 21) and cured tobacco (type 21), Virginia sun- 22–23) and dark air-cured (types 35–36) 63702 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations suggest adequate supplies. Accordingly, (d) The 1996-crop national marketing 13. Section 1464.17 is amended by for these tobaccos, the MY 1996 support quota is 40.6 million pounds. adding paragraph (d) to read as follows: level consists of the MY 1995 level of 4. Section 723.115 is amended by support increased by the difference adding paragraph (d) to read as follows: § 1464.17 Cigar-filler and binder (types 42± 44 and 53±55) tobacco. between the MY 1996 ‘‘basic support § 723.115 Dark air-cured (types 35±36) * * * * * level’’ and the MY 1995 ‘‘basic support tobacco. level.’’ Also, chewing tobacco, smoking (d) The 1996-crop national price tobacco, and snuff manufacturing * * * * * support level is 112.0 cents per pound. (d) The 1996-crop national marketing formulas limit the substitutability of one 14. Section 1464.18 is amended by quota is 9.2 million pounds. adding paragraph (d) to read as follows: of these kinds of tobacco for another. 5. Section 723.116 is amended by Cigarettes, the principal outlet for flue- adding paragraph (d) to read as follows: § 1464.18 Cigar-filler (type 46) tobacco. cured and burley tobaccos, do not * * * * * require any of these six kinds of tobacco § 723.116 Sun-cured (type 37) tobacco. (d) Price support shall not be made in their blends. * * * * * Accordingly, the following price available for the 1996 and subsequent (d) The 1996-crop national marketing crops of this type (46). support determinations were announced quota is 148,000 pounds. on March 5, 1996: 6. Section 723.117 is amended by * * * * * adding paragraph (d) to read as follows: Signed at Washington, DC, on November Support 12, 1996. level § 723.117 Cigar-filler and cigar binder Bruce R. Weber, Kind and type (cents (types 42±44: 53±55) tobacco. Acting Administrator, Farm Service Agency per pound) * * * * * and Executive Vice President, Commodity (d) The 1996-crop national marketing Credit Corporation. Virginia fire-cured (type 21) ...... 145.5 quota is 8.9 million pounds. [FR Doc. 96–30551 Filed 11–29–96; 8:45 am] Kentucky-Tennessee fire-cured 7. Section 723.118 is amended by BILLING CODE 3410±05±P (types 22±23) ...... 155.7 adding paragraph (d) to read as follows: Dark air-cured (types 35±36) ...... 133.9 Virginia sun-cured (type 37) ...... 128.8 § 723.118 Cigar filler (type 46) tobacco. Cigar-filler and binder (types 42±44 * * * * * DEPARTMENT OF TRANSPORTATION and 53±55) ...... 112.0 (d) There shall be no national or Federal Aviation Administration Cigar-filler (type 46) ...... 88.1 individual marketing quotas for the 1996 and subsequent marketing years 14 CFR Part 39 However, as indicated, price support for this type (46). will not be made available for type 46 [Docket No. 96±NM±173±AD; Amendment until such time as quotas may be PART 1464ÐTOBACCO 39±9835; AD 96±24±11] established for this type. 8. The authority citation for 7 CFR RIN 2120±AA64 List of Subjects part 1464 continues to read as follows: Airworthiness Directives; Israel 7 CFR Part 723 Authority: 7 U.S.C. 1421, 1423, 1441, 1445, and 1445–1; 15 U.S.C. 714b and 714c. Aircraft Industries (IAI), Ltd., Model Acreage allotments, Marketing quotas, 1123, 1124, and 1124A Series Airplanes Penalties, Reporting and recordkeeping 9. Section 1464.13 is amended by requirements, Tobacco. adding paragraph (d) to read as follows: AGENCY: Federal Aviation Administration, DOT. 7 CFR Part 1464 § 1464.13 Fire-cured (type 21) tobacco. ACTION: Final rule. Price supports, Tobacco. * * * * * (d) The 1996-crop national price SUMMARY: This amendment adopts a Accordingly, 7 CFR parts 723 and support level is 145.5 cents per pound. 1464 are amended to read as follows: new airworthiness directive (AD), 10. Section 1464.14 is amended by applicable to all IAI, Ltd., Model 1123, PART 723ÐTOBACCO adding paragraph (d) to read as follows: 1124, and 1124A series airplanes, that requires repetitive inspections of the 1. The authority citation for 7 CFR § 1464.14 Fire-cured (types 22±23) tobacco. aileron push-pull tubes for excessive part 723 continues to read as follows: * * * * * wear and the guide rollers for smooth Authority: 7 U.S.C. 1301, 1311–1314, (d) The 1996-crop national price rotation; and repair or replacement of 1314–1, 1314b, 1314b–1, 1314b–2, 1314c, support level is 155.7 cents per pound. worn parts with serviceable parts. This 1314d, 1314e, 1314f, 1314i, 1315, 1316, 1362, 11. Section 1464.15 is amended by amendment is prompted by reports of 1363, 1372–75, 1377–1379, 1421, 1445–1, excessive wear on the aileron push-pull and 1445–2. adding paragraph (d) to read as follows: tube in the area of the guide rollers. The 2. Section 723.113 is amended by § 1464.15 Dark air-cured (types 35±36) actions specified by this AD are adding paragraph (d) to read as follows: tobacco. intended to prevent such wear, which * * * * * § 723.113 Fire-cured (type 21) tobacco. could result in uneven movement of the (d) The 1996-crop national price control wheel, perforation of the aileron * * * * * support level is 133.9 cents per pound. push-pull tube, and consequent reduced (d) The 1996-crop national marketing 12. Section 1464.16 is amended by roll control of the airplane. quota is 1.97 million pounds. adding paragraph (d) to read as follows: 3. Section 723.114 is amended by DATES: Effective January 6, 1997. adding paragraph (d) to read as follows: § 1464.16 Virginia sun-cured (type 37) The incorporation by reference of tobacco. certain publications listed in the § 723.114 Fire-cured (types 22±23) * * * * * regulations is approved by the Director tobacco. (d) The 1996-crop national price of the Federal Register as of January 6, * * * * * support is 128.8 cents per pound. 1997. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63703

ADDRESSES: The service information Regulatory Impact alternative method of compliance in accordance with paragraph (b) of this AD. referenced in this AD may be obtained The regulations adopted herein will from Technical Publications, Astra Jet The request should include an assessment of not have substantial direct effects on the the effect of the modification, alteration, or Corporation, 77 McCullough Drive, States, on the relationship between the repair on the unsafe condition addressed by Suite 11, New Castle, Delaware 19720. national government and the States, or this AD; and, if the unsafe condition has not This information may be examined at on the distribution of power and been eliminated, the request should include the Federal Aviation Administration responsibilities among the various specific proposed actions to address it. (FAA), Transport Airplane Directorate, levels of government. Therefore, in Compliance: Required as indicated, unless Rules Docket, 1601 Lind Avenue, SW., accordance with Executive Order 12612, accomplished previously. Renton, Washington; or at the Office of it is determined that this final rule does To prevent excessive wear of the aileron push-pull tube, which could result in uneven the Federal Register, 800 North Capitol not have sufficient federalism Street, NW., suite 700, Washington, DC. movement of the control wheel, perforation implications to warrant the preparation of the aileron push-pull tube, and consequent FOR FURTHER INFORMATION CONTACT: Tim of a Federalism Assessment. reduced roll control of the airplane; Dulin, Aerospace Engineer, For the reasons discussed above, I accomplish the following: Standardization Branch, ANM–113, certify that this action (1) is not a (a) Within 50 hours time-in-service after FAA, Transport Airplane Directorate, ‘‘significant regulatory action’’ under the effective date of this AD, inspect the left 1601 Lind Avenue, SW., Renton, Executive Order 12866; (2) is not a and right aileron push-pull tubes for wear Washington 98055–4056; telephone ‘‘significant rule’’ under DOT and the guide rollers for smoothness of Regulatory Policies and Procedures (44 rotation, in accordance with Westwind (206) 227–2141; fax (206) 227–1149. Service Bulletin SB 1123–27–043, dated June FR 11034, February 26, 1979); and (3) SUPPLEMENTARY INFORMATION: A 12, 1995 (for Model 1123 series airplanes); or will not have a significant economic proposal to amend part 39 of the Federal Service Bulletin SB 1124–27–129, dated June impact, positive or negative, on a Aviation Regulations (14 CFR part 39) to 12, 1995 (for Model 1124 and 1124A series substantial number of small entities include an airworthiness directive (AD) airplanes); as applicable. under the criteria of the Regulatory (1) If no wear is detected or if wear is that is applicable to all IAI, Ltd., Model Flexibility Act. A final evaluation has within the limits specified in the applicable 1123, 1124, and 1124A series airplanes been prepared for this action and it is service bulletin, repeat the inspections was published in the Federal Register contained in the Rules Docket. A copy thereafter at intervals not to exceed 600 hours on September 4, 1996 (61 FR 46576). time-in-service. of it may be obtained from the Rules That action proposed to require (2) If any wear is detected and that wear Docket at the location provided under repetitive inspections of the left and is outside the limits specified in the the caption ADDRESSES. right aileron push-pull tubes for applicable service bulletin, prior to further excessive wear and the guide rollers for List of Subjects in 14 CFR Part 39 flight, replace the tube with serviceable parts in accordance with the applicable service smooth rotation; replacement of the Air transportation, Aircraft, Aviation bulletin. Thereafter, repeat the inspections at push-pull tubes with serviceable parts, safety, Incorporation by reference, intervals not to exceed 600 hours time-in- if necessary; and repair or replacement Safety. service. of the guide rollers with serviceable (3) If the guide rollers do not rotate parts, if necessary. Adoption of the Amendment smoothly, accomplish either paragraph Interested persons have been afforded Accordingly, pursuant to the (a)(3)(i) or (a)(3)(ii) of this AD. Thereafter, authority delegated to me by the repeat the inspections at intervals not to an opportunity to participate in the exceed 600 hours time-in-service. making of this amendment. No Administrator, the Federal Aviation (i) Prior to further flight, repair the guide comments were submitted in response Administration amends part 39 of the roller in accordance with the applicable to the proposal or the FAA’s Federal Aviation Regulations (14 CFR service bulletin. Or determination of the cost to the public. part 39) as follows: (ii) Prior to further flight, replace the guide roller with serviceable parts in accordance Conclusion PART 39ÐAIRWORTHINESS with the applicable service bulletin. The FAA has determined that air DIRECTIVES (b) An alternative method of compliance or adjustment of the compliance time that safety and the public interest require the 1. The authority citation for part 39 provides an acceptable level of safety may be adoption of the rule as proposed. continues to read as follows: used if approved by the Manager, Manager, Cost Impact Authority: 49 U.S.C. 106(g), 40113, 44701. Standardization Branch, ANM–113, FAA, Transport Airplane Directorate. Operators The FAA estimates that 213 IAI, Ltd., § 39.13 [Amended] shall submit their requests through an Model 1123, 1124, and 1124A series 2. Section 39.13 is amended by appropriate FAA Principal Maintenance airplanes of U.S. registry will be affected adding the following new airworthiness Inspector, who may add comments and then send it to the Manager, Standardization by this AD, that it will take directive: Branch, ANM–113. approximately 1 work hour per airplane 96–24–11 Israel Aircraft Industries (IAI), Note 2: Information concerning the to accomplish the required inspections, LTD.: Amendment 39–9835. Docket 96– existence of approved alternative methods of and that the average labor rate is $60 per NM–173–AD. compliance with this AD, if any, may be work hour. Based on these figures, the Applicability: All IAI, Ltd., Model 1123, obtained from the Standardization Branch, cost impact of the AD on U.S. operators 1124, and 1124A series airplanes; certificated ANM–113. is estimated to be $12,780, or $60 per in any category. (c) Special flight permits may be issued in airplane, per inspection. Note 1: This AD applies to each airplane accordance with sections 21.197 and 21.199 The cost impact figure discussed identified in the preceding applicability of the Federal Aviation Regulations (14 CFR above is based on assumptions that no provision, regardless of whether it has been 21.197 and 21.199) to operate the airplane to operator has yet accomplished any of otherwise modified, altered, or repaired in a location where the requirements of this AD the area subject to the requirements of this can be accomplished. the requirements of this AD action, and AD. For airplanes that have been modified, (d) The actions shall be done in accordance that no operator would accomplish altered, or repaired so that the performance with Westwind Service Bulletin SB 1123–27– those actions in the future if this AD of the requirements of this AD is affected, the 043, dated June 12, 1995; or Westwind were not adopted. owner/operator must request approval for an Service Bulletin SB 1124–27–129, dated June 63704 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

12, 1995; as applicable. This incorporation by contained the requirements of this pressure fuel pumps. Investigations into reference was approved by the Director of the amendment. those incidents revealed that the fuel Federal Register in accordance with 5 U.S.C. The incorporation by reference of pump gasket, Part Number (P/N) 552(a) and 1 CFR part 51. Copies may be certain publications listed in the 5621005, became lodged in the pump obtained from Technical Publications, Astra Jet Corporation, 77 McCullough Drive, Suite regulations is approved by the Director outlet port after separating from the 11, New Castle, Delaware 19720. Copies may of the Federal Register as of December pump diaphragm assembly on high be inspected at the FAA, Transport Airplane 17, 1996. pressure fuel pumps, P/N LW–15473. Directorate, 1601 Lind Avenue, SW., Renton, Comments for inclusion in the Rules Further investigation revealed that the Washington; or at the Office of the Federal Docket must be received on or before high pressure fuel pumps developed Register, 800 North Capitol Street, NW., suite January 31, 1997. defects during manufacturing. The 700, Washington, DC. ADDRESSES: Submit comments in engines involved in those incidents had (e) This amendment becomes effective on triplicate to the Federal Aviation high pressure fuel pumps with January 6, 1996. Administration (FAA), New England manufacturing date codes: 154739506, Issued in Renton, Washington, on Region, Office of the Assistant Chief 154739507, or 154739510. The first five November 18, 1997. Counsel, Attention: Rules Docket No. digits of the manufacturing date codes James V. Devany, 96–ANE–31, 12 New England Executive refer to the Textron Lycoming P/N and Acting Manager, Transport Airplane Park, Burlington, MA 01803–5299. the last four digits refer to the year and Directorate, Aircraft Certification Service. The applicable service information month of pump manufacture. This [FR Doc. 96–29988 Filed 11–29–96; 8:45 am] may be obtained from Textron condition, if not corrected, could result BILLING CODE 4910±13±U Lycoming, 652 Oliver St., Williamsport, in an inflight engine failure due to fuel PA 17701; telephone (717) 327–7278, starvation, which could result in a fax (717) 327–7022. This information forced landing. 14 CFR Part 39 may be examined at the FAA, New The FAA has reviewed and approved [Docket No. 96±ANE±31; Amendment 39± England Region, Office of the Assistant the technical contents of Textron 9826; AD 96±23±03] Chief Counsel, 12 New England Lycoming Service Bulletin (SB) No. Executive Park, Burlington, MA; or at 525A, dated October 7, 1996, that Airworthiness Directives; Textron the Office of the Federal Register, 800 describes procedures for identifying the Lycoming Reciprocating Engines North Capitol Street, NW., suite 700, manufacturing date code. This SB also Washington, DC. includes procedures for inspection of AGENCY: Federal Aviation internal parts of high pressure fuel FOR FURTHER INFORMATION CONTACT: Ray Administration, DOT. pumps, replacement of specific parts or ACTION: Final rule, Request for O’Neill, Aerospace Engineer, New York Aircraft Certification Office, FAA, the complete high pressure fuel pump, comments. if necessary, and reassembly of the high Engine and Propeller Directorate, 10 pressure fuel pump. SUMMARY: Fifth St., Valley Stream, NY 11581; This document publishes in Since the unsafe condition described the Federal Register an amendment telephone (516) 256–7505, fax (516) is likely to exist or develop on other adopting Airworthiness Directive (AD) 568- 2716. engines of the same type design, the 96–23–03 that was sent previously to all SUPPLEMENTARY INFORMATION: On FAA issued priority letter AD 96–23–03 known U.S. owners and operators of October 28, 1996, the Federal Aviation to prevent inflight engine failure due to Textron Lycoming IO–320, LIO–320, Administration (FAA) issued priority fuel starvation, which could result in a AEIO–320, IO- 360, LIO–360, AEIO– letter airworthiness directive (AD) 96– forced landing. The AD requires within 360, HIO–360, TO–360, IO–540, O–540– 23–03, applicable to Textron Lycoming 5 hours TIS after the effective date of L, LIO–540, and AEIO–540 series IO–320, LIO–320, AEIO–320, IO–360, this AD, a maintenance records check to reciprocating engines by individual LIO–360, AEIO–360, HIO–360, TO–360, determine if suspect high pressure fuel letters. This AD requires a maintenance IO–540, O–540–L, LIO–540, and AEIO– pumps are installed, and if the records records check to determine if suspect 540 series reciprocating engines, which check indicates a suspect high pressure high pressure fuel pumps are installed, requires within 5 hours time in service fuel pump may be installed, inspection, and inspection to determine if the high (TIS) after the effective date of the which can be performed by the owner/ pressure fuel pump has one of the priority letter AD, a maintenance operator holding at least a private pilot’s suspect date codes. If the high pressure records check to determine if suspect certificate, to determine if the high fuel pump has a suspect date code, this high pressure fuel pumps are installed, pressure fuel pump has one of the AD requires disassembly and inspection and if the records check indicates a suspect date codes. If the high pressure of the high pressure fuel pump, and, if suspect high pressure fuel pump may be fuel pump has one of the suspect date necessary, removal from service and installed, inspection, which can be codes, this AD requires disassembly and replacement with a serviceable part. In performed by the owner/operator inspection of the high pressure fuel addition, this AD requires reporting holding at least a private pilot’s pump, and, if necessary, removal from findings of unserviceable high pressure certificate, to determine if the high service and replacement with a fuel pumps. This amendment is pressure fuel pump has one of the serviceable part. In addition, this AD prompted by reports of inflight failures suspect date codes. If the high pressure requires reporting findings of of high pressure fuel pumps. The fuel pump has one of the suspect date unserviceable high pressure fuel pumps. actions specified by this AD are codes, the priority letter AD requires The actions are required to be intended to prevent an inflight engine disassembly and inspection of the high accomplished in accordance with the failure due to fuel starvation, which pressure fuel pump, and, if necessary, SB described previously. could result in a forced landing. removal from service and replacement Since it was found that immediate DATES: Effective December 17, 1996, to with a serviceable part. In addition, the corrective action was required, notice all persons except those persons to priority letter AD requires reporting and opportunity for prior public whom it was made immediately findings of unserviceable high pressure comment thereon were impracticable effective by priority letter AD 96–23–03, fuel pumps. That action was prompted and contrary to the public interest, and issued on October 28, 1996, which by reports of inflight failures of high good cause existed to make the AD Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63705 effective immediately by individual it is determined that this final rule does preceding applicability provision, regardless letters issued on October 28, 1996, to all not have sufficient federalism of whether it has been modified, altered, or known U.S. owners and operators of implications to warrant the preparation repaired in the area subject to the Textron Lycoming IO–320, LIO–320, of a Federalism Assessment. requirements of this AD. For engines that The FAA has determined that this have been modified, altered, or repaired so AEIO–320, IO–360, LIO–360, AEIO–360, that the performance of the requirements of HIO–360, TO–360, IO–540, O–540–L, regulation is an emergency regulation this AD is affected, the owner/operator must LIO–540, and AEIO–540 series that must be issued immediately to request approval for an alternative method of reciprocating engines. These conditions correct an unsafe condition in aircraft, compliance in accordance with paragraph (c) still exist, and the AD is hereby and is not a ‘‘significant regulatory of this AD. The request should include an published in the Federal Register as an action’’ under Executive Order 12866. It assessment of the effect of the modification, amendment to Section 39.13 of part 39 has been determined further that this alteration, or repair on the unsafe condition of the Federal Aviation Regulations (14 action involves an emergency regulation addressed by this AD; and, if the unsafe CFR part 39) to make it effective to all under DOT Regulatory Policies and condition has not been eliminated, the request should include specific proposed persons. Procedures (44 FR 11034, February 26, actions to address it. 1979). If it is determined that this Comments Invited Compliance: Required as indicated, unless emergency regulation otherwise would Although this action is in the form of accomplished previously. be significant under DOT Regulatory To prevent an inflight engine failure due to a final rule that involves requirements Policies and Procedures, a final fuel starvation, which could result in a forced affecting flight safety and, thus, was not regulatory evaluation will be prepared landing, accomplish the following: preceded by notice and an opportunity and placed in the Rules Docket. A copy (a) Within 5 hours time in service (TIS) for public comment, comments are of it, if filed, may be obtained from the after the effective date of this AD, accomplish invited on this rule. Interested persons Rules Docket at the location provided the following: (1) Perform a maintenance records check to are invited to comment on this rule by under the caption ADDRESSES. submitting such written data, views, or determine if the engine was shipped from arguments as they may desire. List of Subjects in 14 CFR Part 39 Textron Lycoming between July 18, 1995, Communications should identify the and August 14, 1996, inclusive, or had a high Air transportation, Aircraft, Aviation pressure fuel pump, P/N LW–15473, Rules Docket number and be submitted safety, Incorporation by reference, installed as a replacement high pressure fuel in triplicate to the address specified Safety. pump on or after July 18, 1995. This records under the caption ADDRESSES. All check may be performed by the owner/ communications received on or before Adoption of the Amendment operator holding at least a private pilot’s the closing date for comments will be Accordingly, pursuant to the certificate issued under Part 61 of the Federal considered, and this rule may be authority delegated to me by the Aviation Regulations (14 CFR part 61). If the amended in light of the comments Administrator, the Federal Aviation engine does not meet that criteria, the owner/ received. Factual information that Administration amends part 39 of the operator may sign the maintenance record to supports the commenter’s ideas and indicate that the AD is not applicable, and no Federal Aviation Regulations (14 CFR further action is required. suggestions is extremely helpful in part 39) as follows: (2) If the engine does meet the criteria evaluating the effectiveness of the AD stated in paragraph (a)(1) of this AD, or if the action and determining whether PART 39ÐAIRWORTHINESS shipping date of the engine or the installation additional rulemaking action would be DIRECTIVES date of the high pressure fuel pump is needed. 1. The authority citation for part 39 unknown, visually inspect the flange of the Comments are specifically invited on high pressure fuel pump to determine the continues to read as follows: the overall regulatory, economic, manufacturing date code in accordance with environmental, and energy aspects of Authority: 49 U.S.C. 106(g), 40113, 44701. Textron Lycoming Mandatory Service Bulletin (SB) No. 525A, dated October 7, the rule that might suggest a need to § 39.13 [Amended] modify the rule. All comments 1996. This inspection may be performed by 2. Section 39.13 is amended by the owner/operator holding at least a private submitted will be available, both before adding the following new airworthiness pilot’s certificate. However, any disassembly and after the closing date for comments, directive: of the engine other than opening the cowling in the Rules Docket for examination by must be accomplished by a certificated interested persons. A report that 96–23–03 Textron Lycoming: Amendment mechanic. If the manufacturing date code is summarizes each FAA-public contact 39–9826. Docket 96–ANE–31. not one of the following three codes: concerned with the substance of this AD Applicability: Textron Lycoming IO–320, 154739506, 154739507, or 154739510, no will be filed in the Rules Docket. LIO–320, AEIO–320, IO–360, LIO–360, further action is required, and the owner/ Commenters wishing the FAA to AEIO–360, HIO–360, TO–360, IO–540, O– operator may sign the maintenance record to 540–L, LIO–540, and AEIO–540 series acknowledge receipt of their comments indicate that the AD is not applicable. reciprocating engines, with high pressure (3) For engines with high pressure fuel submitted in response to this notice fuel pumps, Part Number (P/N) LW–15473 pumps that have one of the following must submit a self-addressed, stamped that have manufacturing date codes: manufacturing date codes: 154739506, postcard on which the following 154739506, 154739507, or 154739510; and 154739507, or 154739510, disassemble the statement is made: ‘‘Comments to that were either installed on engines shipped high pressure fuel pump, inspect, and, if Docket Number 96–ANE–31.’’ The from Textron Lycoming between July 18, necessary, repair or replace with a postcard will be date stamped and 1995, and August 14, 1996, inclusive; or were serviceable high pressure fuel pump, in returned to the commenter. purchased as replacement high pressure fuel accordance with Textron Lycoming The regulations adopted herein will pumps on or after July 18, 1995. These Mandatory SB No. 525A, dated October 7, engines are installed on but not limited to 1996. Only certificated mechanics may not have substantial direct effects on the reciprocating engine powered aircraft States, on the relationship between the perform these requirements. manufactured by Aerospatiale, American (b) Within 48 hours after inspection, report national government and the States, or Champion, Bellanca, Cessna, The New Piper the finding of unserviceable high pressure on the distribution of power and Company, Beech, Maule, Mooney, and fuel pumps, the TIS on the pump, and a responsibilities among the various Schweizer 269 series helicopters. contact telephone number to the Manager, levels of government. Therefore, in Note 1: This airworthiness directive (AD) New York Aircraft Certification Office, FAA, accordance with Executive Order 12612, applies to each engine identified in the Engine and Propeller Directorate, 10 Fifth St., 63706 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

Valley Stream, NY 11581; telephone (516) 14 CFR Part 39 200 series turbofan engines, was 256–7505, fax (516) 568–2716. Reporting published in the Federal Register on requirements have been approved by the [Docket No. 96±ANE±02; Amendment 39± May 6, 1996 (61 FR 20194). That action 9821; AD 96±23±15] Office of Management and Budget and proposed to add a requirement to install assigned OMB control number 2120–0056. RIN 2120±AA64 improved design fan blades as (c) An alternative method of compliance or terminating action for the periodic adjustment of the compliance time that Airworthiness Directives; Pratt & inspection of fan blades for locked provides an acceptable level of safety may be Whitney JT8D±200 Series Turbofan rotors and foreign object damage (FOD), used if approved by the Manager, New York Engines unlocking of shrouds if necessary, Aircraft Certification Office. The request AGENCY: Federal Aviation lubrication of fan blade shrouds, and should be forwarded through an appropriate Administration, DOT. dimensional restoration of the fan blade FAA Maintenance Inspector, who may add leading edge. The action would be ACTION: Final rule. comments and then send it to the Manager, required to be accomplished in New York Aircraft Certification Office. SUMMARY: This amendment supersedes accordance with PW Alert Service Note 2: Information concerning the an existing airworthiness directive (AD), Bulletin (ASB) No. A6241, dated existence of approved alternative methods of applicable to Pratt & Whitney JT8D–200 January 25, 1996. compliance with this airworthiness directive, series turbofan engines, that currently Interested persons have been afforded if any, may be obtained from the New York requires periodic inspection of fan an opportunity to participate in the Aircraft Certification Office. blades for locked rotors and foreign making of this amendment. Due (d) Special flight permits may be issued in object damage (FOD), unlocking of consideration has been given to the accordance with sections 21.197 and 21.199 shrouds if necessary, lubrication of fan comments received. of the Federal Aviation Regulations (14 CFR blade shrouds, and dimensional One commenter supports the rule as 21.197 and 21.199) to operate the aircraft to restoration of the fan blade leading edge. proposed. a location where the requirements of this AD This amendment adds a requirement to One commenter concurs with the can be accomplished. install improved design fan blades as inspection and maintenance provisions (e) The requirements of this AD shall be terminating action for the inspections. of the proposed AD. However, the accomplished in accordance with the This amendment is prompted by the commenter questions the proposed following Textron Lycoming Mandatory SB: introduction into service of improved compliance schedule for the terminating action to incorporate the new fan design fan blades. The actions specified blades. The compliance schedule is by this AD are intended to prevent fan based on fan blade cycles in service blade failure, which can result in (CIS). The commenter states that since Document damage to the aircraft. No. Pages Date (1) the fan blade fractures are due to a DATES: Effective January 2, 1997. high cycle fatigue (HCF) failure mode 525A ...... 1±4 ...... October 7, 1996. The incorporation by reference of that is not linked to total part CIS on the certain publications listed in the fan blade, and (2) that individual fan Total pages: 4. regulations is approved by the Director blade CIS are currently not tracked, an of the Federal Register as of January 2, alternative compliance requirement This incorporation by reference was 1997. approved by the Director of the Federal based on completing a specific yearly ADDRESSES: The service information Register in accordance with 5 U.S.C. 552(a) percentage rate of the operator’s engine referenced in this AD may be obtained sets would be less burdensome to the and 1 CFR part 51. Copies may be obtained from Pratt & Whitney, Publication from Textron Lycoming, 652 Oliver St., operators. The FAA concurs in part. Department, Supervisor Technical Williamsport, PA 17701; telephone (717) When the FAA assessed the risk, the Publications Distribution, M/S 132–30, 327–7278, fax (717) 327–7022. Copies may be FAA based the compliance schedule on 400 Main St., East Hartford, CT 06108; inspected at the FAA, New England Region, total part CIS. It has been the FAA’s telephone (860) 565–7700, fax (860) Office of the Assistant Chief Counsel, 12 New practice to define intervals for corrective 565–4503. This information may be England Executive Park, Burlington, MA; or action in an AD by means of part CIS. at the Office of the Federal Register, 800 examined at the Federal Aviation Monitoring this program on a fleet-wide North Capitol Street, NW., suite 700, Administration (FAA), New England basis using the suggested percentage Washington, DC. Region, Office of the Assistant Chief rate would not provide the FAA with an (f) This amendment becomes effective Counsel, 12 New England Executive adequate means to ensure that blades December 17, 1996, to all persons except Park, Burlington, MA 01803–5299; or at were removed before becoming a safety those persons to whom it was made the Office of the Federal Register, 800 problem. Individual operators, however, immediately effective by priority letter AD North Capitol Street, NW., suite 700, may request such a percentage-based 96–23–03, issued October 28, 1996, which Washington, DC. program that includes those assurances contained the requirements of this FOR FURTHER INFORMATION CONTACT: as an alternative method of compliance amendment. Diane Cook, Aerospace Engineer, Engine to the AD. The FAA, therefore, does not Issued in Burlington, Massachusetts, on Certification Office, FAA, Engine and concur that the proposed AD should be November 14, 1996. Propeller Directorate, 12 New England revised. Executive Park, Burlington, MA 01803– Jay J. Pardee, After careful review of the available 5299; telephone (617) 238–7134, fax data, including the comments noted Manager, Engine and Propeller Directorate, (617) 238–7199. Aircraft Certification Service. above, the FAA has determined that air SUPPLEMENTARY INFORMATION: A safety and the public interest require the [FR Doc. 96–30095 Filed 11–29–96; 8:45 am] proposal to amend part 39 of the Federal adoption of the rule as proposed. BILLING CODE 4910±13±U Aviation Regulations (14 CFR part 39) The FAA estimates that 1,100 engines by superseding airworthiness directive installed on aircraft of U.S. registry will (AD) 95–12–19, Amendment 39–9270 be affected by this AD, that it will take (60 FR 31388, June 15, 1995), applicable approximately 19 work hours per engine to certain Pratt & Whitney (PW) JT8D– to accomplish the required actions, and Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63707 that the average labor rate is $60 per incorporated PW Service Bulletin (SB) No. Note 2: Information concerning the work hour. The FAA also estimates that 6193, dated October 31, 1994, or with fan existence of approved alternative method of the parts modification will cost $1,020 blade, Part Numbers (P/N’s) 798821, 798821– compliance with this AD, if any, may be per engine, which includes a 001, 808121, 808121–001, 809221, 811821, obtained from the Engine Certification Office. 851121, 851121–001, 5000021–02, 5000021– (g) Special flight permits may be issued in manufacturer’s discount of $1,700 per 022, and 5000021–032 installed. These engine. Based on these figures, the total accordance with sections 21.197 and 21.199 engines are installed on but not limited to of the Federal Aviation Regulations (14 CFR cost impact of the AD on U.S. operators McDonnell Douglas MD–80 series aircraft. 21.197 and 21.199) to operate the aircraft to is estimated to be $2,376,000. Note 1: This airworthiness directive (AD) a location where the requirements of this AD The regulations adopted herein will applies to each engine identified in the can be accomplished. not have substantial direct effects on the preceding applicability provision, regardless (h) The actions required by this AD shall States, on the relationship between the of whether it has been modified, altered, or be done in accordance with the following national government and the States, or repaired in the area subject to the Pratt & Whitney ASB: on the distribution of power and requirements of this AD. For engines that have been modified, altered, or repaired so responsibilities among the various Docu- Revi- levels of government. Therefore, in that the performance of the requirements of ment Pages sion Date this AD is affected, the owner/operator must No. accordance with Executive Order 12612, request approval for an alternative method of it is determined that this final rule does compliance in accordance with paragraph (f) A6241 1±14 Origi- January 25, 1996. not have sufficient federalism of this AD. The request should include an nal. implications to warrant the preparation assessment of the effect of the modification, of a Federalism Assessment. alteration, or repair on the unsafe condition Total pages: 14. For the reasons discussed above, I addressed by this AD; and, if the unsafe This incorporation by reference was certify that this action (1) is not a condition has not been eliminated, the approved by the Director of the Federal ‘‘significant regulatory action’’ under request should include specific proposed Register in accordance with 5 U.S.C. 552(a) actions to address it. and 1 CFR part 51. Copies may be obtained Executive Order 12866; (2) is not a from Pratt & Whitney, Publication ‘‘significant rule’’ under DOT Compliance: Required as indicated, unless accomplished previously. Department, Supervisor Technical Regulatory Policies and Procedures (44 To prevent fan blade failure, which can Publications Distribution, M/S 132–30, 400 FR 11034, February 26, 1979); and (3) result in damage to the aircraft, accomplish Main St., East Hartford, CT 06108; telephone will not have a significant economic the following: (860) 565–7700, fax (860) 565– 4503. Copies impact, positive or negative, on a (a) Inspect fan blades and shrouds, unlock may be inspected at the FAA, New England substantial number of small entities fan blade shrouds, lubricate fan blade Region, Office of the Assistant Chief Counsel, under the criteria of the Regulatory shrouds, restore leading edge dimensions, 12 New England Executive Park, Burlington, Flexibility Act. A final evaluation has and modify or install improved design fan MA; or at the Office of the Federal Register, blades in accordance with the schedule and 800 North Capitol Street, NW., suite 700, been prepared for this action and it is Washington, DC. contained in the Rules Docket. A copy procedures described in Parts 1, 2, and 3 of the Accomplishment Instructions of PW (i) This amendment becomes effective on of it may be obtained from the Rules Alert Service Bulletin (ASB) No. A6241, January 2, 1997. Docket at the location provided under dated January 25, 1996. Issued in Burlington, Massachusetts, on the caption ADDRESSES. (b) Modification of fan blades to the November 7, 1996. improved design configuration or installation James C. Jones, List of Subjects in 14 CFR Part 39 of improved design fan blades in accordance Air Transportation, Aircraft, Aviation with Part 3 of the Accomplishment Acting Manager, Engine and Propeller safety, Incorporation by reference, Instructions of PW ASB No. A6241, dated Directorate, Aircraft Certification Service. Safety. January 25, 1996, constitutes terminating [FR Doc. 96–30096 Filed 11–29–96; 8:45 am] action to the inspections and maintenance BILLING CODE 4910±13±U Adoption of the Amendment actions described in Parts 1 and 2 of that Accordingly, pursuant to the ASB. (c) For the purpose of this AD, the 14 CFR Part 39 authority delegated to me by the accomplishment effective date to be used for Administrator, the Federal Aviation determination of compliance intervals, as [Docket No. 93±ANE±79; Amendment 39± Administration amends part 39 of the required by Section 2 of PW ASB No. A6241, 9820; AD 96±23±14] Federal Aviation Regulations (14 CFR dated January 25, 1996, is defined as the part 39) as follows: effective date of this AD. RIN 2120±AA64 (d) For the purpose of this AD, ‘‘repair’’ as PART 39ÐAIRWORTHINESS specified in Part 3, Paragraph A.(1)(b) of the Airworthiness Directives; Pratt & DIRECTIVES Accomplishment Instructions of PW ASB No. Whitney JT8D Series Turbofan Engines A6241, dated January 25, 1996, is defined as AGENCY: 1. The authority citation for part 39 the refurbishment of fan blades in accordance Federal Aviation continues to read as follows: with Part 3, Paragraph C of the Administration, DOT. ACTION: Final rule. Authority: 49 U.S.C. 106(g), 40113, 44701. Accomplishment Instructions of PW ASB No. A6241, dated January 25, 1996. § 39.13 [Amended] (e) Alternative methods of compliance that SUMMARY: This amendment supersedes two existing airworthiness directives 2. § 39.13 is amended by removing have been approved for AD 95–12–19 are applicable for this AD and additional (ADs), applicable to Pratt & Whitney Amendment 39–9270 (60 FR 31388, approval is not required. (PW) JT8D series turbofan engines, that June 15, 1995) and by adding a new (f) An alternative method of compliance or currently require repetitive eddy airworthiness directive, Amendment adjustment of the compliance time that current, fluorescent penetrant, 39–9821, to read as follows: provides an acceptable level of safety may be 96–23–15 Pratt & Whitney: Amendment 39– fluorescent magnetic penetrant, or used if approved by the Manager, Engine visual inspections for cracks in the rear 9821. Docket 96–ANE–02. Supersedes Certification Office. The request should be AD 95–12–19, Amendment 39–9270. forwarded through an appropriate FAA flange, and ultrasonic, fluorescent Applicability: Pratt & Whitney (PW) Principal Maintenance Inspector, who may penetrant, or fluorescent magnetic Models JT8D–209,–217, –217A, –217C, and add comments and then send it to the penetrant inspections for cracks in the –219 turbofan engines that have not Manager, Engine Certification Office. PS4 boss, and drain bosses of the 63708 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations combustion chamber outer case (CCOC); inspection interval in AD 87–11–07 R1 The FAA estimates that 6,815 engines and an additional inspection of the for combustion chamber outer cases installed on aircraft of U.S. registry will CCOC rear flange for intergranular (CCOCs) that have had only the aft face be affected by this AD, that it will take cracking. This amendment requires of the rear flange inspected and approximately 4.5 work hours per reducing the rear flange inspection introduced an improved ultrasonic engine to accomplish the required interval for CCOCs when only the aft probe assembly. actions, and that the average labor rate face of the rear flange has been On May 22, 1996 (61 FR 28114, June is $60 per work hour. Based on these inspected, and introducing an improved 4, 1996), the Federal Aviation figures, the total cost impact of the AD ultrasonic probe assembly. In addition, Administration (FAA) issued a on U.S. operators is estimated to be this amendment introduces a rotating Supplementary NPRM, that revised the $1,840,050. eddy current probe for shop inspections earlier NPRM by proposing to simplify The regulations adopted herein will in which the case is removed from the the compliance instructions and not have substantial direct effects on the engine. Also, this amendment incorporate a new PW Alert Service States, on the relationship between the eliminates fluorescent penetrant Bulletin (ASB). That Supplemental national government and the States, or inspection (FPI), fluorescent magnetic NPRM also revised the earlier NPRM by on the distribution of power and particle inspection (FMPI), and visual introducing new non-destructive responsibilities among the various inspections from hot section inspection procedures (NDIPs), and levels of government. Therefore, in disassembly level inspection introducing a rotating eddy current accordance with Executive Order 12612, procedures. This amendment is probe for shop inspections in which the it is determined that this final rule does prompted by reports of crack origins in case is removed from the engine. In not have sufficient federalism the forward face of the rear flange that addition, the Supplemental NPRM implications to warrant the preparation could not be detected by the inspection eliminated fluorescent penetrant of a Federalism Assessment. methods for installed CCOC’s that were inspection (FPI), fluorescent magnetic mandated in the current ADs. The particle inspection (FMPI), and visual For the reasons discussed above, I actions specified by this AD are inspections from hot section certify that this action (1) is not a intended to prevent uncontained engine disassembly level inspection ‘‘significant regulatory action’’ under failure, inflight engine shutdown, procedures. The Supplemental NPRM Executive Order 12866; (2) is not a engine cowl release, and airframe also revised the earlier NPRM by ‘‘significant rule’’ under DOT damage. consolidating the inspection Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and (3) DATES: Effective January 2, 1997. requirements of an additional current The incorporation by reference of AD, 95–08–15, into the proposed AD. will not have a significant economic impact, positive or negative, on a certain publications listed in the Interested persons have been afforded substantial number of small entities regulations is approved by the Director an opportunity to participate in the under the criteria of the Regulatory of the Federal Register as of January 2, making of this amendment. Due Flexibility Act. A final evaluation has 1997. consideration has been given to the been prepared for this action and it is ADDRESSES: The service information comments received. contained in the Rules Docket. A copy referenced in this AD may be obtained One commenter states that the from Pratt & Whitney, 400 Main St., East of it may be obtained from the Rules effective date for the borescope Docket at the location provided under Hartford, CT 06108; telephone (860) inspection required by paragraph (a) of the caption ADDRESSES. 565–6600, fax (860) 565–4503. This this AD should be the same as the information may be examined at the effective date of AD 95–08–15. The List of Subjects in 14 CFR Part 39 Federal Aviation Administration (FAA), proposed AD would supersede AD 95– New England Region, Office of the 08–15, therefore the borescope Air Transportation, Aircraft, Aviation Assistant Chief Counsel, 12 New inspection intervals have already been safety, Incorporation by reference, England Executive Park, Burlington, MA initiated to comply with AD 95–08–15. Safety. 01803–5299; or at the Office of the The FAA concurs. The FAA has revised Adoption of the Amendment Federal Register, 800 North Capitol the accomplishment effective date in Street, NW., suite 700, Washington, DC. this final rule from the effective date of Accordingly, pursuant to the FOR FURTHER INFORMATION CONTACT: this AD to May 9, 1995, which is the authority delegated to me by the Robert E. Guyotte, Manager, Engine effective date of AD 95–08–15. Administrator, the Federal Aviation Certification Branch, Engine One commenter states that the PW Administration amends part 39 of the Certification Office, FAA, Engine and JT8D–7B engine model was omitted Federal Aviation Regulations (14 CFR Propeller Directorate, 12 New England from the applicability section of the part 39) as follows: Executive Park, Burlington, MA 01803– proposed rule, but was included in the 5299; telephone (617) 238–7142, fax ADs to be superseded. The FAA concurs PART 39ÐAIRWORTHINESS (617) 238–7199. and has revised this final rule DIRECTIVES SUPPLEMENTARY INFORMATION: A accordingly. 1. The authority citation for part 39 proposal to amend part 39 of the Federal After careful review of the available continues to read as follows: Aviation Regulations (14 CFR part 39) data, including the comments noted by superseding airworthiness directive above, the FAA has determined that air Authority: 49 U.S.C. 106(g), 40113, 44701. (AD) 87–11–07 R1, Amendment 39– safety and the public interest require the § 39.13 [Amended] 6360 (54 FR 46045, November 1, 1989), adoption of the rule with the changes which is applicable to Pratt & Whitney described previously. The FAA has 2. Section 39.13 is amended by (PW) JT8D series turbofan engines, was determined that these changes will removing amendment 39–6360 (54 FR published in the Federal Register on neither increase the economic burden 46045, November 1, 1989) and March 15, 1994 (59 FR 11942). That on any operator nor increase the scope amendment 39–9204 (60 FR 20019, action proposed to require to reduce the of the AD. April 24, 1995), and by adding a new Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63709 airworthiness directive, Amendment of this AD. The request should include an procedures described in Paragraphs 2.A. (Part 39–9820, to read as follows: assessment of the effect of the modification, I), 2.B. (Part II), and 2.D of PW ASB No. alteration, or repair on the unsafe condition A6228, dated November 7, 1995. Reporting 96–23–14 Pratt & Whitney: Amendment 39– addressed by this AD; and, if the unsafe requirements have been approved by the 9820. Docket 93–ANE–79. Supersedes condition has not been eliminated, the Office of Management and Budget and AD 87–11–07 R1, Amendment 39–6360, request should include specific proposed assigned OMB control number 2120–0056. AD 87–11–07, Amendment 39–5619, and actions to address it. AD 95–08–15, Amendment 39–9204. (c) An alternative method of compliance or Compliance: Required as indicated, unless adjustment of the compliance time that Applicability: Pratt & Whitney (PW) accomplished previously. provides an acceptable level of safety may be Models JT8D–1,–1A,–1B, –7, –7A, –7B, –9, To prevent CCOC flange cracks that could used if approved by the Manager, Engine –9A, –11, –15, –15A, –17, –17A, –17R, and result in uncontained engine failure, inflight Certification Office. The request should be –17AR turbofan engines, with combustion engine shutdown, engine cowl release, and forwarded through an appropriate FAA chamber outer case (CCOC) part numbers (P/ airframe damage, accomplish the following: Ns) 490547, 542155, 616315, 728829, (a) Inspect, disposition, and report CCOC Principal Maintenance Inspector, who may 728829–001, 730413, 730413–001, 730414, distress, in accordance with the intervals and add comments and then send it to the 730414–001, 767197, 767279, 767279–001 procedures described in Paragraphs 2.A and Manager, Engine Certification Office. installed. These engines are installed on but 2.C of PW Alert Service Bulletin (ASB) No. Note 2: Information concerning the not limited to Boeing 737 and 727 series, and A6202, Revision 1, dated January 4, 1996. existence of approved alternative method of McDonnell Douglas DC–9 series aircraft. Reporting requirements have been approved compliance with this AD, if any, may be Note 1: This airworthiness directive (AD) by the Office of Management and Budget and obtained from the Engine Certification Office. applies to each engine identified in the assigned OMB control number 2120–0056. (d) Special flight permits may be issued in preceding applicability provision, regardless (1) For the purposes of this AD, the of whether it has been modified, altered, or accomplishment effective date to be used for accordance with §§ 21.197 and 21.199 of the repaired in the area subject to the determination of inspection intervals, as Federal Aviation Regulations (14 CFR 21.197 requirements of this AD. For engines that required by Section 2.A of PW ASB A6202, and 21.199) to operate the aircraft to a have been modified, altered, or repaired so Revision 1, dated January 4, 1996, is defined location where the requirements of this AD that the performance of the requirements of as May 9, 1995, which is the effective date can be accomplished. this AD is affected, the owner/operator must of AD 95–08–15. (e) The actions required by this AD shall request approval for an alternative method of (b) Inspect, disposition ,and report CCOC be done in accordance with the following compliance in accordance with paragraph (c) distress in accordance with the intervals and Pratt & Whitney ASBs and NDIP documents:

Document No. Pages Revision Date

A6202 ...... 1±10 1 ...... Jan. 4, 1996...... 11 Original ...... Feb. 20, 1995. NDIP±835 ...... 1±17 A ...... Oct. 7, 1995. Total pages: 28. A6228 ...... 1±31 Original ...... Nov. 7, 1995. NDIP±620 ...... 1±15 A ...... Oct. 7 1995. NDIP±691 ...... 1±20 B ...... Oct. 7, 1995. NDIP±781 ...... 1±21 Original ...... Oct. 7, 1995. NDIP±795 ...... 1±20 Original ...... Oct. 7, 1995. NDIP±829 ...... 1±14 Original ...... Oct. 7, 1995. NDIP±834 ...... 1±19 A ...... Oct. 7, 1995. NDIP±856 ...... 1±42 Original ...... Oct. 7, 1993. Total pages: 182.

This incorporation by reference was SECURITIES AND EXCHANGE Exchange Commission, and published approved by the Director of the Federal COMMISSION on September 12, 1996 (61 FR 48290) Register in accordance with 5 U.S.C. 552(a) remains January 10, 1997. Effective and 1 CFR part 51. Copies may be obtained 17 CFR Part 240 December 2, 1996, the compliance date from Pratt & Whitney, 400 Main St., East [Release No. 34±37972; File No. S7±30±95] to require the display of customer limit Hartford, CT 06108; telephone (860) 565– orders in only 50 of the 1,000 most 6600, fax (860) 565–4503. Copies may be RIN 3235±AG66 actively traded OTC securities is inspected at the FAA, New England Region, January 10, 1997. The new compliance Office of the Assistant Chief Counsel, 12 New Order Execution Obligations England Executive Park, Burlington, MA; or date for an additional 100 of these 1,000 at the Office of the Federal Register, 800 AGENCY: Securities and Exchange securities is January 31, 1997, and the North Capitol Street, NW., suite 700, Commission. compliance date for the remaining 850 most actively traded securities is Washington, DC. ACTION: Final Rule; Revised Compliance (f) This amendment becomes effective on Dates. February 21, 1997. The remainder of the January 2, 1997. compliance dates are unchanged. SUMMARY: The Securities and Exchange Issued in Burlington, Massachusetts, on FOR FURTHER INFORMATION CONTACT: Commission is revising, for certain over- November 7, 1996. David Oestreicher, Special Counsel, the-counter (‘‘OTC’’) securities, the James C. Jones, (202) 942–0158, Division of Market compliance dates required by the recent Acting Manager, Engine and Propeller adoption of Rule 11Ac1–4, the ‘‘Display Regulation, Securities and Exchange Directorate, Aircraft Certification Service. Rule,’’ which generally requires OTC Commission, 450 Fifth Street, NW., Mail [FR Doc. 96–30127 Filed 11–29–96; 8:45 am] market makers and exchange specialists Stop 5–1, Washington, DC 20549. BILLING CODE 4910±13±U to display customer limit orders. SUPPLEMENTARY INFORMATION: On August DATES: The effective date for Rule 28, 1996, the Securities and Exchange 11Ac1–4 adopted by the Securities and Commission (‘‘Commission’’) adopted 63710 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

Rule 11Ac1–4,1 the ‘‘Display Rule,’’ to Adopting Release. Specifically, the of Food and Drugs and redelegated to require OTC market makers and second phase-in date will be on March the Center for Veterinary Medicine, 21 exchange specialists to display certain 28, 1997. From this date forward, the CFR part 510 is amended as follows: customer limit orders for covered Display Rule will apply to the next securities if no stated exception 1,500 Nasdaq securities with the highest PART 510ÐNEW ANIMAL DRUGS applies.2 average daily trading volume over the 1. The authority citation for 21 CFR As discussed in the Adopting Release, previous quarter. The third phase-in part 510 continues to read as follows: the Display Rule will become effective date will be on June 30, 1997. From that on January 10, 1997. Implementation of date forward, the Display Rule will Authority: Secs. 201, 301, 501, 502, 503, the Display Rule will be accomplished apply to the next 2,000 Nasdaq 512, 701, 721 of the Federal Food, Drug, and in phases, with the first phase of securities with the highest average daily Cosmetic Act (21 U.S.C. 321, 331, 351, 352, 353, 360b, 371, 379e). implementation scheduled to begin on trading volume over the previous January 10, 1997. As originally quarter. The final phase-in date will be § 510.600 [Amended] envisioned by the Commission, as of on August 28, 1997. From that date 2. Section 510.600 Names, addresses, this date, the Display Rule would apply forward, the Display Rule will apply to and drug labeler codes of sponsors of to all exchange-traded securities and the all remaining Nasdaq securities. approved applications is amended in 1,000 Nasdaq securities with the highest Dated: November 22, 1996. the table in paragraph (c)(1) by average daily trading volume in the removing the sponsor name for previous quarter. The Commission By the Commission. ‘‘Hoechst-Roussel Agri-Vet Co.,’’ and initially provided a phase-in period for Margaret H. McFarland, adding in its place ‘‘Hoechst Roussel Nasdaq securities because the display of Deputy Secretary. Vet,’’ and in the table in paragraph (c)(2) limit orders in the OTC market [FR Doc. 96–30527 Filed 11–29–96; 8:45 am] in the entry for ‘‘012799’’ by removing represents a significant change in OTC BILLING CODE 8010±01±P the sponsor name ‘‘Hoechst-Roussel market practice. To ensure an orderly Agri-Vet Co.,’’ and adding in its place market transition, the Commission ‘‘Hoechst Roussel Vet,’’. believes that market professionals DEPARTMENT OF HEALTH AND should be provided a period of time in HUMAN SERVICES Dated: November 21, 1996. which to become accustomed, in a small Robert C. Livingston, number of stocks, to the quote volume Food and Drug Administration Director, Office of New Animal Drug and array of prices that will be reflected Evaluation, Center for Veterinary Medicine. by the display of customer limit orders. 21 CFR Part 510 [FR Doc. 96–30652 Filed 11–29–96; 8:45 am] The Commission has determined, New Animal Drugs; Change of Sponsor BILLING CODE 4160±01±F therefore, to require as of January 10, Name 1997, compliance with the Display Rule with respect to only 50 of the 1,000 AGENCY: Food and Drug Administration, 21 CFR Part 510 Nasdaq securities with the highest HHS. Animal Drugs, Feeds, and Related average daily trading volume in the ACTION: Final rule. previous quarter. These 50 securities Products; Change of Sponsor Name will be identified by Nasdaq. On SUMMARY: The Food and Drug AGENCY: January 31, 1997, compliance with the Administration (FDA) is amending the Food and Drug Administration, Display Rule will be required with animal drug regulations to reflect a HHS. respect to an additional 100 securities change of sponsor name from Hoechst- ACTION: Final rule. identified by Nasdaq. Compliance with Roussel Agri-Vet Co. to Hoechst Roussel the Display Rule for the remaining 850 Vet. SUMMARY: The Food and Drug Administration (FDA) is amending the of the 1000 Nasdaq securities with the EFFECTIVE DATE: December 2, 1996. animal drug regulations to reflect the highest daily trading volume in the FOR FURTHER INFORMATION CONTACT: previous quarter, as determined by change of sponsor name from Fort Thomas J. McKay, Center for Veterinary Dodge Laboratories, Division of Nasdaq, will be required on February Medicine (HFV–102), Food and Drug 21, 1997. For exchange-traded American Home Products Corp. to Fort Administration, 7500 Standish Pl., Dodge Animal Health, Division of securities, the Commission believes that Rockville, MD 20855, 301–827–0213. it continues to be appropriate to require American Home Products Corp. SUPPLEMENTARY INFORMATION: Hoechst- compliance with the Display Rule as of EFFECTIVE DATE: December 2, 1996. Roussel Agri-Vet Co., Rt. 202–206, P.O. January 10, 1997, except in cases where Box 2500, Somerville, NJ 08876–1258, FOR FURTHER INFORMATION CONTACT: the security is a Nasdaq security and is has informed FDA of a change of Thomas J. McKay, Center for Veterinary traded on an exchange pursuant to sponsor name to Hoechst Roussel Vet. Medicine (HFV–102), Food and Drug unlisted trading privileges. In such Accordingly, the agency is amending Administration, 7500 Standish Pl., cases, the security will be considered to the regulations in 21 CFR 510.600(c)(1) Rockville, MD 20855, 301–827–0213. be a Nasdaq security, not an exchange- and (c)(2) to reflect the change of SUPPLEMENTARY INFORMATION: Fort traded security, for the purpose of sponsor name. Dodge Laboratories, Division of determining the compliance date with American Home Products Corp., 800 the Display Rule. List of Subjects in 21 CFR Part 510 Fifth St. NW., Fort Dodge, IA 50501, has All subsequent phase-in dates for Administrative practice and informed FDA of a change of sponsor compliance with the Display Rule will procedure, Animal drugs, Labeling, name to Fort Dodge Animal Health, continue to apply as described in the Reporting and recordkeeping Division of American Home Products requirements. Corp. Accordingly, FDA is amending 1 17 CFR 240.11Ac1–4. 2 Securities Exchange Act Release No. 37619A Therefore, under the Federal Food, the regulations in 21 CFR 510.600(c)(1) (September 6, 1996), 61 FR 48290 (September 12, Drug, and Cosmetic Act and under and (c)(2) to reflect the change of 1996) (‘‘Adopting Release’’). authority delegated to the Commissioner sponsor name. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63711

List of Subjects in 21 CFR Part 510 Administration, 7500 Standish Pl., § 520.2325a Sulfaquinoxaline drinking water. Administrative practice and Rockville, MD 20855, 301–594–1623. procedure, Animal drugs, Labeling, SUPPLEMENTARY INFORMATION: I. D. (a) Sponsor. See § 510.600(c) of this Reporting and recordkeeping Russell Co. Laboratories, 1301 Iowa chapter for identification of the requirements. Ave., Longmont, CO 80501, filed sponsors. Therefore, under the Federal Food, supplemental NADA 6–891 that (1) To No. 050749 for use of a 25- Drug, and Cosmetic Act and under provides for reformulation of the 34- percent sulfaquinoxaline soluble authority delegated to the Commissioner percent sulfaquinoxaline solution to a powder and a 20-percent of Food and Drugs and redelegated to 31.92-percent sulfaquinoxaline solution sulfaquinoxaline sodium solution as the Center for Veterinary Medicine, 21 (as sodium and potassium salts) used in provided for in paragraph (c) of this CFR part 510 is amended as follows: animal drinking water. The supplement section. is approved as of October 22, 1996, and (2) To No. 060594 for use of 3.44- and PART 510ÐNEW ANIMAL DRUGS the regulations are amended in 12.85-percent sulfaquinoxaline sodium § 520.2325a(a) (21 CFR 520.2325a(a)) to solutions as provided for in paragraphs 1. The authority citation for 21 CFR (c)(1), (c)(2), (c)(3), (c)(4)(i), and (c)(4)(ii) part 510 continues to read as follows: reflect the approval. In addition, § 520.2325a(a) is revised of this section. Authority: Secs. 201, 301, 501, 502, 503, to specify the base and salt content of (3) To No. 017144 for use of a 31.92- 512, 701, 721 of the Federal Food, Drug, and several other approved sulfaquinoxaline percent sulfaquinoxaline solution Cosmetic Act (21 U.S.C. 321, 331, 351, 352, (sodium and potassium salts) as 353, 360b, 371, 379e). drinking water products. The supplemental approval is for a provided for in paragraphs (c)(1), (c)(2), § 510.600 [Amended] revised formulation of an approved (c)(3), (c)(4)(i), and (c)(4)(ii) of this 2. Section 510.600 Names, addresses, product and does not affect the basis of section. and drug labeler codes of sponsors of approval or conditions of use in the * * * * * approved applications is amended in currently approved application. No Dated: November 18, 1996. the table in paragraph (c)(1) by additional safety or effectiveness data Robert C. Livingston, removing the sponsor name for ‘‘Fort were required. Therefore, a freedom of Director, Office of New Animal Drug Dodge Laboratories, Division of information summary is not required for Evaluation, Center for Veterinary Medicine. American Home Products Corp.’’ and by this approval. [FR Doc. 96–30651 Filed 11–29–96; 8:45 am] adding in its place a new entry for ‘‘Fort Under section 512(c)(2)(F)(iii) of the BILLING CODE 4160±01±F Dodge Animal Health, Division of Federal Food, Drug, and Cosmetic Act American Home Products Corp.’’; and in (21 U.S.C. 360b(c)(2)(F)(iii)), approval of the table in paragraph (c)(2) in the entry this supplemental NADA does not 21 CFR Part 520 for ‘‘000856’’ by removing the sponsor qualify for marketing exclusivity name ‘‘Fort Dodge Laboratories, because the supplement does not Oral Dosage Form New Animal Drugs; Division of American Home Products’’ contain reports of new clinical or field Pyrantel Pamoate Suspension and adding in its place ‘‘Fort Dodge investigations (other than AGENCY: Animal Health, Division of American bioequivalence or residue studies) or Food and Drug Administration, Home Products Corp.’’ new human food safety studies (other HHS. ACTION: Final rule. Dated: November 21, 1996. than bioequivalence or residue studies) essential to the approval and conducted Robert C. Livingston, SUMMARY: The Food and Drug or sponsored by the applicant. Director, Office of New Animal Drug Administration (FDA) is amending the Evaluation, Center for Veterinary Medicine. The agency has determined under 21 animal drug regulations to reflect CFR 25.24(d)(1)(iii) that this action is of [FR Doc. 96–30588 Filed 11–29–96; 8:45 am] approval of an abbreviated new animal a type that does not individually or BILLING CODE 4160±01±F drug application (ANADA) filed by cumulatively have a significant effect on Happy Jack, Inc. The ANADA provides the human environment. Therefore, for oral use of pyrantel pamoate 21 CFR Part 520 neither an environmental assessment suspension for removal of large nor an environmental impact statement roundworms and hookworms in Oral Dosage Form New Animal Drugs; is required. puppies and dogs and to prevent Sulfaquinoxaline Drinking Water List of Subjects in 21 CFR Part 520 reinfections of Toxocara canis in puppies and adult dogs and in lactating AGENCY: Food and Drug Administration, Animal drugs. bitches after whelping. HHS. Therefore, under the Federal Food, EFFECTIVE DATE: December 2, 1996. ACTION: Final rule. Drug, and Cosmetic Act and under authority delegated to the Commissioner FOR FURTHER INFORMATION CONTACT: SUMMARY: The Food and Drug of Food and Drugs and redelegated to Sandra K. Woods, Center for Veterinary Administration (FDA) is amending the the Center for Veterinary Medicine, 21 Medicine (HFV–114), Food and Drug animal drug regulations to reflect CFR part 520 is amended as follows: Administration, 7500 Standish Pl., approval of a supplemental new animal Rockville, MD 20855, 301–594–1616. drug application (NADA) filed by I. D. PART 520ÐORAL DOSAGE FORM SUPPLEMENTARY INFORMATION: Happy Russell Co. Laboratories. The NEW ANIMAL DRUGS Jack, Inc., P.O. Box 475, Highway 258 supplement provides for a revised South, Snow Hill, NC 28580, filed formulation of sulfaquinoxaline liquid 1. The authority citation for 21 CFR part 520 continues to read as follows: ANADA 200–007, which provides for used in animal drinking water. oral use of Liqui-Vict 2XTM (pyrantel EFFECTIVE DATE: December 2, 1996. Authority: Sec. 512 of the Federal Food, pamoate) oral suspension for removal of Drug, and Cosmetic Act (21 U.S.C. 360b). FOR FURTHER INFORMATION CONTACT: large roundworms (T. canis and Dianne T. McRae, Center for Veterinary 2. Section 520.2325a is amended by Toxascaris leonina) and hookworms Medicine (HFV–102), Food and Drug revising paragraph (a) to read as follows: (Ancylostoma caninum and Uncinaria 63712 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations stenocephala) in puppies and dogs and 21 CFR Part 524 Dated: November 21, 1996. to prevent reinfections of T. canis in Robert C. Livingston, puppies and adult dogs and in lactating Ophthalmic and Topical Dosage Form Director, Office of New Animal Drug bitches after whelping. The product New Animal Drugs; Change of Sponsor Evaluation, Center for Veterinary Medicine. contains pyrantel pamoate equivalent to [FR Doc. 96–30589 Filed 11–29–96; 8:45 am] AGENCY: Food and Drug Administration, 4.54 milligrams of pyrantel base. BILLING CODE 4160±01±F Approval of ANADA 200–007 for HHS. Happy Jack, Inc.’s, pyrantel pamoate ACTION: Final rule. suspension is as a generic copy of SUMMARY: The Food and Drug DEPARTMENT OF DEFENSE TM Pfizer’s NADA 100–237 Nemex-2 Administration (FDA) is amending the (pyrantel pamoate). The ANADA is animal drug regulations to reflect the Office of the Secretary approved as of October 30, 1996, and change of sponsor for an approved new the regulations are amended in 21 CFR animal drug application (NADA) for 32 CFR Part 318 520.2043(b)(2) to reflect the approval. Biocraft Laboratories, Inc., and A. H. [DSWA Instruction 5400.11B] The basis of approval is discussed in the Robins Co. freedom of information summary. EFFECTIVE DATE: December 2, 1996. Privacy Program In accordance with the freedom of FOR FURTHER INFORMATION CONTACT: information provisions of 21 CFR part AGENCY: Defense Special Weapons Thomas J. McKay, Center for Veterinary 20 and 21 CFR 514.11(e)(2)(ii), a Agency, DOD. Medicine (HFV–102), Food and Drug summary of safety and effectiveness ACTION: Final rule. Administration, 7500 Standish Pl., data and information submitted to Rockville, MD 20855, 301–827–0213. SUMMARY: The Defense Special Weapons support approval of this application Agency (DSWA) is revising its may be seen in the Dockets Management SUPPLEMENTARY INFORMATION: A. H. Robins Co., P.O. Box 518, Fort Dodge, procedural and exemptions rules for the Branch (HFA–305), Food and Drug DSWA Privacy Program. Administration, 12420 Parklawn Dr., IA 50501–0518, and Biocraft Laboratories, Inc., 92 Route 46, EFFECTIVE DATE: November 9, 1996. rm. 1–23, Rockville, MD 20857, between FOR FURTHER INFORMATION CONTACT: Mrs. 9 a.m. and 4 p.m., Monday through Elmwood Park, NJ 07407, are no longer cosponsors of NADA 140–889. This Sandy Barker at (703) 325–7681. Friday. arrangement was terminated sometime SUPPLEMENTARY INFORMATION: The The agency has determined under 21 ago, but the agency failed to reflect the proposed rule was previously published CFR 25.24(d)(1)(i) that this action is of change in the regulations. Biocraft on September 9, 1996 at 61 FR 47467. a type that does not individually or Laboratories, Inc., now exclusively No comments were received, therefore, cumulatively have a significant effect on owns NADA 140–889 and A. H. Robins DSWA is adopting the rule as final. the human environment. Therefore, Co. is the sponsor of new NADA 141– Executive Order 12866. It has been neither an environmental assessment 003. A. H. Robins Co. filed a determined that this Privacy Act rule for nor an environmental impact statement supplement to NADA 140–889 to the Department of Defense does not is required. provide for the establishment of a new constitute ‘significant regulatory action’. List of Subjects in 21 CFR Part 520 NADA. Therefore, the agency is Analysis of the rule indicates that it amending 21 CFR 524.1600a to reflect does not have an annual effect on the Animal drugs. the change of sponsorship. economy of $100 million or more; does Therefore, under the Federal Food, not create a serious inconsistency or Drug, and Cosmetic Act and under List of Subjects in 21 CFR Part 524 otherwise interfere with an action taken authority delegated to the Commissioner Animal drugs. or planned by another agency; does not of Food and Drugs and redelegated to Therefore, under the Federal Food, materially alter the budgetary impact of the Center for Veterinary Medicine, 21 Drug, and Cosmetic Act and under entitlements, grants, user fees, or loan CFR part 520 is amended as follows: authority delegated to the Commissioner programs or the rights and obligations of of Food and Drugs and redelegated to recipients thereof; does not raise novel PART 520ÐORAL DOSAGE FORM the Center for Veterinary Medicine, 21 NEW ANIMAL DRUGS legal or policy issues arising out of legal CFR part 524 is amended as follows: mandates, the President’s priorities, or 1. The authority citation for 21 CFR the principles set forth in Executive PART 524ÐOPHTHALMIC AND part 520 continues to read as follows: Order 12866 (1993). Authority: Sec. 512 of the Federal Food, TOPICAL DOSAGE FORM NEW Regulatory Flexibility Act. It has been Drug, and Cosmetic Act (21 U.S.C. 360b). ANIMAL DRUGS determined that this Privacy Act rule for 2. Section 520.2043 is amended by 1. The authority citation for 21 CFR the Department of Defense does not adding a new sentence at the end of part 524 continues to read as follows: have significant economic impact on a paragraph (b)(2) to read as follows: Authority: Sec. 512 of the Federal Food, substantial number of small entities Drug, and Cosmetic Act (21 U.S.C. 360b). because it is concerned only with the § 520.2043 Pyrantel pamoate suspension. administration of Privacy Act systems of * * * * * § 524.1600a [Amended] records within the Department of (b) * * * 2. Section 524.1600a Nystatin, Defense. (2) * * * See No. 023851 for use of neomycin, thiostrepton, and Paperwork Reduction Act. It has been 4.54 milligrams per milliliter product. triamcinolone acetonide ointment is determined that this Privacy Act rule for * * * * * amended in paragraph (b) by removing the Department of Defense imposes no ‘‘See Nos. 000031/000332 (cosponsors), information requirements beyond the Dated: November 22, 1996. 000069, 025463, 051259, and 053501 in Department of Defense and that the Stephen F. Sundlof, § 510.600(c) of this chapter’’ and by information collected within the Director, Center for Veterinary Medicine. adding in its place ‘‘See Nos. 000031, Department of Defense is necessary and [FR Doc. 96–30653 Filed 11–29–96; 8:45 am] 000069, 000332, 025463, 051259, and consistent with 5 U.S.C. 552a, known as BILLING CODE 4160±01±F 053501 in § 510.600(c) of this chapter’’. the Privacy Act of 1974. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63713

List of Subjects in 32 CFR Part 318 Agency, is designated as the Agency disclose or discuss such records in the Privacy. Privacy Act Officer. presence of the accompanying Accordingly, 32 CFR part 318 is (1) The Privacy Act Officer is the individual. revised as follows: principal point of contact for privacy (d) Individuals should mail their matters and is the Agency Initial Denial written request to the Office of General PART 318±DEFENSE SPECIAL Authority. Counsel, Defense Special Weapons WEAPONS AGENCY PRIVACY (2) The Privacy Act Officer is Agency, 6801 Telegraph Road, PROGRAM responsible for monitoring and ensuring Alexandria, VA 22310–3398 or to the Agency compliance with the DoD office designated in the system notice Sec. Privacy Program in accordance with 32 and indicate clearly on the outer 318.1 Purpose and scope. CFR part 310. envelope ‘Privacy Act Request’. 318.2 Applicability. (b) The Director, DSWA, is the 318.3 Designations and responsibilities. § 318.5 Disclosure of requested 318.4 Procedures for requests pertaining to Agency Appellate Authority. information to individuals. (c) The Director, DSWA is responsible individual records in a record system. (a) The Defense Special Weapons 318.5 Disclosure of requested information to for implementing the Agency Privacy Agency, upon receiving a request for individuals. Act Program in accordance with the notification of the existence of a record 318.6 Request for correction or amendment specific requirements of 32 CFR part or for access to a record, shall to a record. 310. 318.7 Agency review of request for correction acknowledge receipt of the request (d) Agency component and element or amendment of record. within 10 working days. responsibilities are set forth in DSWA 318.8 Appeal of initial adverse Agency (b) Determine whether or not such Instruction 5400.11B,1 determination for access, correction or January 12, 1995. record exists. amendment. § 318.4 Procedures for requests pertaining (c) Determine whether or not such 318.9 Exemptions rules. to individual records in a record system. request for access is available under the Authority: Pub. L. 93–579, 88 Stat. 1896 (5 U.S.C. 552a). (a) An individual seeking notification Privacy Act. of whether a system of records, (d) Notify requester of determinations § 318.1 Purpose and scope. maintained by the Defense Special within 30 working days after receipt of (a) This rule implements the Weapons Agency, contains a record such request. (e) Provide access to information provisions of the Privacy Act of 1974, as pertaining to himself/herself and who pertaining to that person which has amended, and adopts the policies and desires to review, have copies made of been determined to be available within procedures as set forth by the such records, or to be provided an Department of Defense Privacy Program, 30 working days. accounting of disclosures from such (f) Notify the individual if fees will be 32 CFR part 310. records, shall submit his or her request (b) This rule establishes procedures assessed for reproducing copies of the in writing. Requesters are encourage to records. Fee schedule and rules for whereby individuals can: review the systems of records notices (1) Request notification of whether assessing fees are contained in section published by the Agency so as to Defense Special Weapons Agency 318.11 of this part. specifically identify the particular (DSWA) maintains or has disclosed a record system(s) of interest to be § 318.6 Request for correction or record pertaining to them in any accessed. amendment to a record. nonexempt system of records; (2) Request a copy or other access to (b) In addition to meeting the (a) An individual may request that the such a record or to an accounting of its requirements set forth in section 318.4 Defense Special Weapons Agency disclosure; of this part, the individual seeking correct, amend, or expunge any record, (3) Request that the record be notification, review or copies, and an or portions thereof, pertaining to the amended; and accounting of disclosures will provide requester that he/she believe to be (4) Appeal any initial adverse in writing his or her full name, address, inaccurate, irrelevant, untimely, or determination of any such request. Social Security Number, and a incomplete. (c) Specifies those system of records telephone number where the requester (b) Such requests shall specify the which the Director, Headquarters, can be contacted should questions arise particular portions of the records in Defense Special Weapons Agency has concerning the request. This question, be in writing and should be determined to be exempt from the information will be used only for the mailed to the Office of General Counsel, procedures established by this rule and purpose of identifying relevant records Defense Special Weapons Agency, 6801 by certain provisions of the Privacy Act. in response to an individual’s inquiry. Telegraph Road, Alexandria, VA 22310– (d) DSWA policy encompasses the It is further recommended that 3398. safeguarding of individual privacy from individuals indicate any present or past (c) The requester shall provide any misuse of DSWA records and the relationship or affiliations, if any, with sufficient information to identify the provides the fullest access practicable the Agency and the appropriate dates in record and furnish material to by individuals to DSWA records order to facilitate a more thorough substantiate the reasons for requesting concerning them. search. A notarized statement or an corrections, amendments, or unsworn declaration in accordance with expurgation. § 318.2 Applicability. 28 U.S.C. 1746 may also be required. The provisions of this rule apply to § 318.7 Agency review of request for (c) An individual who wishes to be correction or amendment of record. Headquarters, Defense Special Weapons accompanied by another individual (a) The Agency will acknowledge a Agency (HQ DSWA), and Field when reviewing his or her records, must request for correction or amendment Command, Defense Special Weapons provide the Agency with written within 10 working days of receipt. The Agency (FC DSWA). consent authorizing the Agency to acknowledgment will be in writing and § 318.3 Designations and responsibilities. 1 Copies may be obtained from Office of General will indicate the date by which the (a) The General Counsel, Counsel, Headquarters, Defense Special Weapons Agency expects to make its initial Headquarters, Defense Special Weapons Agency, Washington, DC 20305–1000. determination. 63714 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

(b) The Agency shall complete its (i) Of the individual’s right to file a growing out of the investigation or consideration of requests to correct or concise statement of his or her reasons proceeding. amend records within 30 working days, for disagreeing with the Agency’s (iii) From subsection (e)(1), (e)(4)(G), and inform the requester of its initial decision in the record, (H), (I) because it will provide determination. (ii) Of the procedures for filing a protection against notification of (c) If it is determined that records statement of the disagreement, and investigatory material including certain should be corrected or amended in (iii) Of the individual’s right to seek reciprocal investigations and whole or in part, the Agency shall judicial review of the Agency’s refusal counterintelligence information, which advise the requester in writing of its to correct or amend a record. might alert a subject to the fact that an determination; and correct or amend the investigation of that individual is taking § 318.9 Exemption rules. records accordingly. The Agency shall place, and the disclosure of which then advise prior recipients of the (a) Exemption for classified material. would weaken the on-going records of the fact that a correction or All systems of records maintained by investigation, reveal investigatory amendment was made and provide the the Defense Special Weapons Agency techniques, and place confidential substance of the change. shall be exempt under section (k)(1) of informants in jeopardy who furnished (d) If the Agency determines that a 5 U.S.C. 552a, to the extent that the information; under an express promise record should not be corrected or systems contain any information that the sources’ identity would be held amended, in whole or in part, as properly classified under E.O. 12598 in confidence (or prior to the effective requested by the individual, the Agency and that is required by that E.O. to be date of the Act, under an implied shall advise the requester in writing of kept secret in the interest of national promise.) its refusal to correct or amend the defense or foreign policy. This (d) System identifier and name: records and the reasons therefor. The exemption is applicable to parts of all HDSWA 011, Inspector General notification will inform the requester systems of records including those not Investigation Files. that the refusal may be appealed otherwise specifically designated for (1) Exemption: Portions of this system administratively and will advise the exemptions herein which contain of records may be exempt from the individual of the procedures for such isolated items of properly classified provisions of 5 U.S.C. 552a(c)(3); (d)(1) appeals. information. through (4); (e)(1); (e)(4)(G), (H), and (I); (b) System identifier and name: and (f). § 318.8 Appeal of initial adverse Agency HDSWA 007, Security Operations. (2) Authority: 5 U.S.C. 552a (k)(2). determination for access, correction or (1) Exemption: Portions of this system (3) Reasons: (i) From subsection (c)(3) amendment. of records may be exempt from the because it will enable DSWA to conduct (a) An individual who disagrees with provisions of 5 U.S.C. 552a(c)(3), (d)(1) certain investigations and relay law the denial or partial denial of his or her through (d)(4), (e)(1), (e)(4)(G), (H), (I), enforcement information without request for access, correction, or and (f). compromise of the information, amendment of Agency records (2) Authority: 5 U.S.C. 552a(k)(5). protection of investigative techniques pertaining the himself/herself, may file (3) Reasons: (i) From subsection (c)(3) and efforts employed, and identities of a request for administrative review of because it will enable DSWA to confidential sources who might not such refusal within 30 days after the safeguard certain investigations and otherwise come forward and who date of notification of the denial or relay law enforcement information furnished information under an express partial denial. without compromise of the information, promise that the sources’ identity would (b) Such requests shall be made in and protect the identities of confidential be held in confidence (or prior to the writing and mailed to the Office of the sources who might not otherwise come effective date of the Act, under an General Counsel, Defense Special forward and who have furnished implied promise.) Weapons Agency, 6801 Telegraph Road, information under an express promise (ii) From subsection (d)(1) through Alexandria, VA 22310–3398. that the sources’ identity would be held (d)(4) and (f) because providing access (c) The requester shall provide a brief in confidence (or prior to the effective to records of a civil investigation and written statement setting for the reasons date of the Act, under an implied the right to contest the contents of those for his or her disagreement with the promise.) records and force changes to be made to initial determination and provide such (ii) From subsection (d)(1) through the information contained therein additional supporting material as the (d)(4) and (f) because providing access would seriously interfere with and individual feels necessary to justify the to records of a civil investigation and thwart the orderly and unbiased appeal. the right to contest the contents of those conduct of the investigation and impede (d) Within 30 working days of receipt records and force changes to be made to case preparation. Providing access rights of the request for review, the Agency the information contained therein normally afforded under the Privacy Act shall advise the individual of the final would seriously interfere with and would provide the subject with valuable disposition of the request. thwart the orderly and unbiased information that would allow (e) In those cases where the initial conduct of security investigations. interference with or compromise of determination is reversed, the Providing access rights normally witnesses or render witnesses reluctant individual will be so informed and the afforded under the Privacy Act would to cooperate; lead to suppression, Agency will take appropriate action. provide the subject with valuable alteration, or destruction of evidence; (f) In those cases where the initial information that would allow and result in the secreting of or other determination is sustained, the interference with or compromise of disposition of assets that would make individual shall be advised: witnesses or render witnesses reluctant them difficult or impossible to reach in (1) In the case of a request for access to cooperate; lead to suppression, order to satisfy any Government claim to a record, of the individual’s right to alteration, or destruction of evidence; growing out of the investigation or seek judicial review of the Agency and result in the secreting of or other proceeding. refusal for access. disposition of assets that would make (iii) From subsection (e)(1), (e)(4)(G), (2) In the case of a request to correct them difficult or impossible to reach in (H), and (I) because it will provide or amend the record: order to satisfy any Government claim protection against notification of Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63715 investigatory material including certain seventh line, ‘‘32°46′43.7′′N’’ is Funds; and to set the schedule for four reciprocal investigations and corrected to read ‘‘32°46′42.7′′N’’. rate setting proceedings. counterintelligence information, which Dated: October 25, 1996. In using the CARP rules to administer these proceedings, the Office identified might alert a subject to the fact that an J.W. Lockwood, investigation of that individual is taking some minor problems with the U.S. Coast Guard Commander, Seventh Coast application of the current rules, which place, and the disclosure of which Guard District. would weaken the on-going these non-substantive technical [FR Doc. 96–30067 Filed 11–29–96; 8:45 am] investigation, reveal investigatory amendments correct. The amendments techniques, and place confidential BILLING CODE 4910±14±M clarify ambiguous sections, harmonize informants in jeopardy who furnished discordant rules, and streamline the information under an express promise process, when possible, based on the that the sources’ identity would be held LIBRARY OF CONGRESS experience gleaned over the past in confidence (or prior to the effective eighteen months. Copyright Office date of the Act, under an implied Official Address promise). Dated: November 25, 1996. 37 CFR Parts 251, 252, 257, and 259 During the course of a CARP proceeding, interested parties file [Docket No. RM 94±1A] L. M. Bynum, pleadings with the Copyright Office and the CARP. Although many of these Alternate OSD Federal Register Liaison Copyright Arbitration Royalty Panels; pleadings are filed with the Copyright Officer, Department of Defense. Rules and Regulations Office prior to the initiation of the [FR Doc. 96–30535 Filed 11–29–96; 8:45 am] AGENCY: Copyright Office, Library of CARP, the regulations do not instruct BILLING CODE 5000±04±F Congress. the parties where to file the pleading at ACTION: Technical amendments. the Copyright Office, if hand delivered. Therefore, § 251.1 is amended to DEPARTMENT OF TRANSPORTATION SUMMARY: On December 7, 1994, the address this omission by adding the Coast Guard Copyright Office of the Library of official address of the Office of the Congress published final regulations Copyright General Counsel. 33 CFR Part 110 governing the administration of royalty List of Arbitrators fee distribution proceedings and royalty [CGD07±96±017 rate adjustment proceedings for the The Librarian of Congress selects RIN 2115±AA98 statutory licenses. Over the past arbitrators for a CARP from a list of eighteen months, the Office tested these names generated from the nominations Anchorage Areas; Ashley River, rules and identified areas which submitted to him by at least three Charleston, SC; Correction required minor adjustments or professional arbitration associations. clarification. This notice makes non- Section 251.3(a) allows the arbitration AGENCY: Coast Guard, DOT. substantive technical amendments to associations to submit new names each ACTION: Correction to final regulations. correct the identified problems. year and § 251.3(b) requires the Librarian to publish a list of qualified SUMMARY: EFFECTIVE DATE: January 2, 1997. This document contains nominees after January 1 of each year. corrections to the final regulations [FR FOR FURTHER INFORMATION CONTACT: The annual solicitation of new names Doc. 96–20018], which were published Marilyn J. Kretsinger, Acting General from at least three arbitration Wednesday, August 7, 1996, (61 FR Counsel, or Tanya M. Sandros, CARP associations and the review of the 40993). The regulations related to the Specialist, Copyright Arbitration financial disclosure forms from the establishment of anchorage areas on the Royalty Panel, P.O. Box 70977, nominees, however, requires substantial Ashley River, Charleston, South Southwest Station, Washington, D.C. time and effort on the part of the Carolina. 20024. Telephone: (202) 707–8380. Librarian of Congress, the Copyright EFFECTIVE DATE: September 6, 1996. Telefax: (202) 707–8366. Office, and the nominating FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: The organizations. Likewise, the parties to a CWO4 R.M. Webber, Project Officer, Copyright Office (‘‘Office’’) of the proceeding expend considerable time Marine Safety Office Charleston, Tel: Library of Congress issued the current and expense in examining the (803) 724–7690. regulations, see 37 CFR chapter II, background material for each potential subchapter B, governing the Copyright arbitrator in preparing their objections SUPPLEMENTARY INFORMATION: Arbitration Royalty Panels (‘‘CARP’’) under § 251.4 to listed arbitrators. But in Need for Correction after an extensive rulemaking which spite of all the preliminary work, very As published, the final regulations began with a notice of proposed few individuals on the list actually will contain an error which requires rulemaking, 59 FR 2550 (January 18, have an opportunity to serve on a panel. correction for the proper establishment 1994), and concluded with the In 1995, three individuals from a list of of the anchorage areas. publication of the final regulations on 77 names were chosen to serve on a December 7, 1994. 59 FR 63025 single panel; and this year, no more Correction of Publication (December 7, 1994). During 1995 and than six individuals from a list of 36 Accordingly, the publication on 1996, these rules were used to conduct nominees will be chosen to serve as a August 7, 1996, (61 FR 40993) of the a CARP proceeding to determine the CARP arbitrator. final regulations [FR Doc. 96–20018], is distribution of the 1990, 1991, and 1992 In consideration of the relatively corrected as follows: cable royalties; to initiate a second small probability of using more than a CARP proceeding to determine the handful of names from the list in any § 110.72d [Corrected] distribution of the 1992, 1993, and 1994 given year, the Office cannot justify the On page 40994, in the second column, digital audio recording technology disproportionate amount of time and in § 110.72d, in paragraph (a), in the (DART) royalties in the Musical Works expense expended by the nominating 63716 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations associations, the parties, or itself in Filing and Service of Written Cases and file replies to a response within five generating and reviewing an annual list. Pleadings business days of the filing of the Therefore, the rule is amended to reflect The bifurcation of the responsibilities response. Additionally, the amendment a two year cycle for generating a new for a CARP proceeding between the clarifies that the seven-day period list. Library and the arbitration panel specified for filing responses to a generated considerable confusion pleading refers to business days. This Qualifications of the Arbitrators concerning the number of copies to be correction creates a consistent time frame for filing CARP documents, and Section 251.5(c), which quotes the filed with the panel and with the removes the distinction between a statutory requirements for an arbitrator Copyright Office. Therefore, the current filing requirements articulated in pleading cycle within a 45-day under consideration for service on a precontroversy period and a pleading CARP, mistakenly uses an ‘‘or’’ in place §§ 251.44(a) and 251.44(b) are combined into a single regulation which addresses cycle at any other time. of ‘‘and.’’ This amendment corrects the Sections 251.45(b)(1)(i) and (b)(2)(i) is typographical error. all the filing requirements related to a CARP proceeding. The new regulation amended further to state that each party Financial Disclosure Forms instructs participants to deliver an must effect actual delivery of a complete original and five copies to the Copyright copy of its written direct case on each Section 251.32(a), which allows a Office for further distribution to the party, no later than the first day of the nominated arbitrator to file a financial CARP, unless otherwise instructed by 45-day precontroversy discovery period. disclosure form with the Librarian of the Librarian of Congress or the CARP. Consideration of Petition; Settlement Congress up to one month after the This change eliminates the confusion Historically, parties in a rate setting publication of the list of nominees in engendered by the two filing proceeding have engaged in a period of the Federal Register, is amended and requirements described in the current negotiation before the initiation of now requires a nominated arbitrator to §§ 251.44(a) and 251.44(b). formal hearings. Section 251.63(a) Additionally, a new § 251.44(b) file the financial disclosure form no continues this tradition, but refers to the contains the information pertaining to later than 45 days after the arbitration 30-day negotiation period as a ‘‘period the filing of exhibits which had been in association submits the candidate’s for consideration for their settlement.’’ § 251.44(a). The information concerning name to the Librarian of Congress. This To avoid any confusion arising from this the filing of exhibits remains the same amendment will allow the Librarian of language, the amended section now and is moved to a separate section Congress to compile a list for reads ‘‘a 30-day period for negotiation of publication in the Federal Register that merely for clarification purposes. Currently, § 251.44(e)(2) requires a a settlement.’’ includes only those names of nominees party not represented by counsel to sign who show a clear interest in serving on Filing of Claims and verify all documents filed in a Each year, the Copyright Office the panels through their submission of proceeding. Since the party’s signature a completed financial disclosure form. receives claims for cable compulsory constitutes certification by the signing license fees, for compulsory license fees Currently, § 251.32(b)(2)(ii) requires party that to the best of his or her for secondary transmissions by satellite the Librarian to publish in the order knowledge and belief there are good carriers, and for statutory license fees grounds to support the filing, the rule is establishing the precontroversy for digital audio recording technology amended to require only the party’s discovery schedule a list of potential and media distributed in the United signature. financial conflicts which the listed States. The Copyright Act defines the arbitrators have agreed to disclose. This Section 251.44(f) is amended by removing redundant references to the filing period for each license, see 17 list of conflicts, however, need not be U.S.C. 111(d)(4)(A), 119(b)(4)(A) and published in the Federal Register or Library of Congress, the Copyright Office, and the CARP, since parties will 1007(a)(1), but the regulations define the even simultaneously with the order parameters for compliance with the setting the precontroversy discovery file all pleadings with the Copyright Office, as required under the new statutory dates. See 37 CFR 252.4(e), schedule. Therefore, § 251.32(b)(2)(ii) is 257.4(e), and 259.5(e). amended by removing the specific § 251.44(a). Section 251.44(g) is also amended to Specifically, the rules allow a party to reference to publication in the order harmonize the time for filing provide a receipt from the U.S. Postal establishing the period for oppositions and replies with the filing Service which shows that the claim was precontroversy motions. requirements specified in § 251.45(b), properly mailed, and therefore, properly A typographical error exists in and now requires all oppositions be filed. Properly mailed, however, means § 251.32(d). In the third clause of the filed within seven business days of the both that a claim has a correct address first sentence, the word ‘‘any’’ is a filing of the motion. Additionally, the and that it is mailed during the mistake; the clause should read ‘‘if there language referring to the date of service appropriate time period. The only are no changes in the arbitrator’s has been removed, because the filing acceptable proof of a timely filing, however, is the certified mail return financial interests,’’. date of the motion or opposition is the relevant date for determining the receipt bearing a U.S. Postal Service Written Cases appropriate response date. Each party, mark demonstrating that the mailing however, must make service of all occurred during the relevant time Section 251.43(a) requires motions, petitions, objections, period to the appropriate address. participants to file direct cases with the oppositions, and replies on the other Therefore, the word ‘‘mailed’’ in the Copyright Arbitration Royalty Panel parties or their counsel by means no phrase, ‘‘a claimant may nonetheless when, in fact, a panel may not have slower than overnight express mail on prove that the claim was properly been selected at the moment in the the same day the pleading is filed. mailed,’’ is being replaced with the proceeding when direct cases are due. word ‘‘filed’’ as a means of clarifying the Therefore, the amended rule requires Discovery and Prehearing Motions language in all the regulatory sections the participants to file their direct cases Sections 251.45(b)(1)(i) and (b)(2)(i) which discuss proof of a timely filing. with the Copyright Office. are amended and will allow parties to Additionally, the amended rule states Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63717 specifically that the receipt must bear a 37 CFR Part 252 commencement of the 45-day July date stamp of the U. S. Postal Cable television, Claims, Copyright. precontroversy discovery period; Service, except where paragraph (b) of * * * * * the section applies, when the claim is 37 CFR Part 257 7. Section 251.32(d) is corrected by filed under §§ 252.4(e) or 257.4(e), or a Claims, Copyright, Satellites. removing the word ‘‘any’’ in the phrase January or February date stamp of the ‘‘if there are any changes in the 27 CFR Part 259 U.S. Postal Service, except where arbitrator’s financial interests,’’ and paragraph (b) of the section applies, Claims, Copyright, Digital audio adding the word ‘‘no’’ before the word when the claim is filed under § 259.5(e), recordings devices and media. ‘‘changes’’ in the same phrase. before the Office will accept the receipt Accordingly, 37 CFR chapter II is as proof of a timely filed claim. corrected by making the following § 251.43 Written cases. [Amended] 8. Section 251.43(a) is amended by Authorizations for DART Claimants corrections and amendments. removing the phrase ‘‘Copyright On December 1, 1995, the Office PART 251ÐCOPYRIGHT Arbitration Royalty Panel’’ and adding published a final rule which specified ARBITRATION ROYALTY PANEL ‘‘Copyright Office’’ in its place. the nature of the authorization which an RULES AND PROCEDURES 9. In § 251.44, paragraphs (a), (b), organization acting as a common agent 1. The authority citation for part 251 (e)(2), (f) and (g) are revised to read as must obtain before making a claim for continues to read as follows: follows: DART fees on behalf of its members and Authority: 17 U.S.C. 801–803. § 251.44 Filing and service of written affiliates. 60 FR 61657 (December 1, cases and pleadings. 1995). The rule also included two 2. Section 251.1 is revised to read as limited exceptions to the rule requiring follows: (a) Filing of pleadings. In a royalty fee separate, specific, and written distribution proceeding or in a rate § 251.1 Official addresses. authorization. These exceptions were adjustment proceeding, the submitting available to all organizations acting as a Claims, pleadings, and general party shall deliver an original and five common agent on behalf of its members. correspondence should be addressed to: copies of all filings to the Copyright Copyright Arbitration Royalty Panel Office at the address listed in § 251.1, On December 19, 1995, and again on (CARP), P.O. Box 70977, Southwest unless otherwise instructed by the February 1, 1996, in letters to the Station, Washington, DC 20024 Librarian of Congress or the CARP. The Copyright Office, the Alliance of Artists or, hand-delivered to: Copyright Office will make further and Recording Companies (‘‘AARC’’) distribution to the CARP, as necessary. Office of the Copyright General Counsel, voiced its concern that the new rule In no case shall a party tender any Room 403, James Madison Building, could create confusion, rather than written case or pleading by facsimile 101 Independence Avenue, S.E., reduce it, where a claimant, whose transmission. Washington, DC 20540 interests were represented by different (b) Exhibits. All exhibits must be organizations, asserted a claim in both § 251.3 Arbitration lists. [Amended] included with a party’s case; however, the Sound Recordings Fund and the in the case of exhibits whose bulk or Musical Works Fund. Initially, the 3. In § 251.3(a) introductory text, the phrase ‘‘of each year’’ is removed and whose cost of reproduction would performance rights organizations unnecessarily encumber the record or strongly opposed AARC’s proposal to the phrase ‘‘, 1998, and every two years thereafter’’ is added after the phrase burden the party, the Librarian of change the rule. Joint Letter from Congress or the CARP may reduce the ASCAP, BMI, Inc. and SESAC, Inc. ‘‘before January 1’’. 4. In § 251.3(b), the phrase ‘‘of each number of required copies. dated January 24, 1995. These parties, year,’’ is removed and the phrase ‘‘, Nevertheless, a complete copy must still however, pursued further discussions 1998, and every two years thereafter’’ is be submitted to the Copyright Office. concerning the potential problems added after the phrase ‘‘after January 1’’. * * * * * associated with the exceptions in (2) The original of all documents filed § 259.2(c); and on June 4, 1996, ARCC § 251.5 Qualifications of the arbitrators. by a party not represented by counsel and the performance rights [Corrected] shall be signed by that party and list organizations announced that they had 5. In § 251.5(c), the word ‘‘or’’ is that party’s address and telephone reached agreement upon a proposed removed and the word ‘‘and’’ is added number. change that would address AARC’s before the word ‘‘facilitating’’. concerns. As all known parties affected 6. In § 251.32, paragraphs (a) and * * * * * by the proposed limitation on the (b)(2)(ii) are revised to read as follows: (f) The Librarian of Congress shall exceptions agree to the proposed compile and distribute to those parties change, § 259.2(c) is amended § 251.32 Financial disclosure statement. who have filed a notice of intent to accordingly. Under the amended rule, (a) Within 45 days of their participate, the official service list of the an organization acting as a common nomination, each nominated arbitrator proceeding, which shall be composed of agent can take advantage of the shall file with the Librarian of Congress the names and addresses of the exceptions to the rule requiring written, a confidential financial disclosure representatives of all the parties to the separate, and specific authorization only statement as provided by the Library of proceeding. In all filings, a copy shall be when it files a claim to the Musical Congress, which statement shall be served upon counsel of all other parties Works Fund. reviewed by the Librarian and identified in the service list, or, if the designated Library staff to determine party is unrepresented by counsel, upon List of Subjects what conflicts of interest, if any, exist the party itself. Proof of service shall 37 CFR Part 251 according to § 251.31. accompany the filing. Parties shall (b) * * * notify the Librarian of any change in the Administrative practice and (2) * * * name or address to which service shall procedure, Hearing and appeal (ii) Such list shall be included in an be made, and shall serve a copy of such procedures. order issued no later than the notification on all parties and the CARP. 63718 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

(g) Oppositions and replies. Except as direct cases among the parties to the Authority: 17 U.S.C. 119(b)(4). otherwise provided in this part or by the proceeding. Each party to the Librarian of Congress or a CARP, proceeding must effect actual delivery 15. In § 257.4, paragraph (e) is revised oppositions to motions shall be filed of a complete copy of its written direct to read as follows: within seven business days of the filing case on each of the other parties to the § 257.4 Compliance with statutory dates. of the motion, and replies to oppositions proceeding no later than the first day of shall be filed within five business days the 45-day period. At any time during * * * * * of the filing of the opposition. Each the 45-day period, any party to the (e) In the event that a properly party must serve all motions, petitions, proceeding may file with the Librarian addressed and mailed claim is not objections, oppositions, and replies on prehearing motions and objections, timely received by the Copyright Office, the other parties or their counsel by including petitions to dispense with a claimant may nonetheless prove that means no slower than overnight express formal hearings under § 251.41(b) and the claim was properly filed if it was mail on the same day the pleading is objections to arbitrators appearing on sent by certified mail return receipt filed. the arbitrator list under § 251.4. requested, and the claimant can provide Responses to motions, petitions, and 10. In § 251.45, paragraphs (b)(1)(i) a receipt bearing a July date stamp of the objections must be filed with the and (b)(2)(i) are revised to read as U.S. Postal Service, except where Librarian within seven business days follows: paragraph (b) of this section applies. No from the filing of such motions, § 251.45 Discovery and prehearing petitions, and objections. Replies to the affidavit of an officer or employee of the motions. responses shall be filed within five claimant, or of a U.S. postal worker will * * * * * business days from the filing of such be accepted in lieu of the receipt. (b) * * * responses with the Librarian. Each party PART 259ÐFILING OF CLAIMS TO (1)(i) In the case of a royalty fee must serve all motions, petitions, DIGITAL AUDIO RECORDING DEVICES distribution proceeding, the Librarian of objections, oppositions, and replies on Congress shall, after the filing of the other parties or their counsel by AND MEDIA ROYALTY PAYMENTS comments and notices described in means no slower than overnight express paragraph (a) of this section, designate mail on the same day the pleading is 16. The authority citation for part 259 a 45-day period for precontroversy filed. continues to read as follows: Authority: 17 U.S.C. 1007(a)(1). discovery and exchange of documents. * * * * * The period will begin with the exchange § 259.2 Time of filing. [Amended] of written direct cases among the parties § 251.63 Consideration of petition; to the proceeding. Each party to the settlements. [Amended] 17. In § 259.2, the last sentence in proceeding must effect actual delivery 11. Section 251.63(a) is amended by paragraph (c) introductory text is of a complete copy of its written direct removing the phrase ‘‘consideration of amended by removing the phrase ‘‘in case on each of the other parties to the their settlement.’’ and adding the phrase cases’’ and adding the phrase ‘‘for proceeding no later than the first day of ‘‘negotiation of a settlement.’’ after the claimants to the Musical Works Fund’’ the 45-day period. At any time during phrase ‘‘designate a 30-day period for’’. after the word ‘‘required’’. the 45-day period, any party to the proceeding may file with the Librarian PART 252ÐFILING OF CLAIMS TO 18. In § 259.5, paragraph (e) is revised prehearing motions and objections, CABLE ROYALTY FEES to read as follows: including petitions to dispense with 12. The authority citation for part 252 § 259.5 Compliance with statutory dates. formal hearings under § 251.41(b) and continues to read as follows: objections to arbitrators appearing on * * * * * the arbitrator list under § 251.4. Authority: 17 U.S.C. 111(d)(4), 801, 803. (e) In the event that a properly Responses to motions, petitions, and 13. In § 252.4, paragraph (e) is revised addressed and mailed claim is not objections must be filed with the to read as follows: timely received by the Copyright Office, Librarian within seven business days a claimant may nonetheless prove that from the filing of such motions, § 252.4 Compliance with statutory dates. the claim was properly filed if it was petitions, and objections. Replies to the * * * * * sent by certified mail return receipt responses shall be filed within five (e) In the event that a properly requested, and the claimant can provide business days from the filing of such addressed and mailed claim is not a receipt bearing a January or February responses with the Librarian. Each party timely received by the Copyright Office, date stamp of the U.S. Postal Service, must serve all motions, petitions, a claimant may nonetheless prove that except where paragraph (b) of this objections, oppositions, and replies on the claim was properly filed if it was section applies. No affidavit of an officer sent by certified mail return receipt the other parties or their counsel by or employee of the claimant, or of a U.S. requested, and the claimant can provide means no slower than overnight express postal worker will be accepted in lieu of a receipt bearing a July date stamp of the mail on the same day the pleading is the receipt. filed. U.S. Postal Service, except where * * * * * paragraph (b) of this section applies. No Dated: November 12, 1996. (2)(i) In the case of a rate adjustment affidavit of an officer or employee of the Marybeth Peters, proceeding, the Librarian of Congress claimant, or of a U.S. postal worker will Register of Copyrights. be accepted in lieu of the receipt. shall, after the filing of comments and So Adopted: notices described in paragraph (a) of PART 257ÐFILING OF CLAIMS TO James H. Billington, this section, designate a 45-day period SATELLITE CARRIER ROYALTY FEES for precontroversy discovery and The Librarian of Congress. exchange of documents. The period will 14. The authority citation for part 257 [FR Doc. 96–30458 Filed 11–29–96; 8:45 am] begin with the exchange of written continues to read as follows: BILLING CODE 1410±33±P Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63719

DEPARTMENT OF VETERANS proposed rule concerning the Adult Day The Life Safety Code was intended to AFFAIRS Health Care Program; the Community apply to the ‘‘mom and pop’’ residential Residential Care Program; and the care facilities and we believe that the 38 CFR Part 17 Contract Program for Veterans With adoption of the current Life Safety Code RIN 2900±AH61 Alcohol and Drug Dependence is necessary to ensure minimum levels Disorders (60 FR 47133). We proposed of fire safety for residential care Community Residential Care Program to update these regulations by facilities participating in VA programs. and Contract Program for Veterans incorporating by reference relevant The Life Safety Code is a national With Alcohol and Drug Dependence portions of the latest editions of the consensus code based on actual fire Disorders National Fire Protection Association experience across the country. The code Life Safety Code entitled ‘‘NFPA 101, adopts standards designed to protect the AGENCY: Department of Veterans Affairs. Life Safety Code’’ and ‘‘NFPA 101A, occupants from loss of life but yet is ACTION: Final rule. Guide on Alternative Approaches to Life intended to avoid standards which Safety.’’ We also proposed changes to SUMMARY: This document updates the might involve significant hardship or delegations of authority. We requested Department of Veterans Affairs (VA) inconvenience while yielding little that comments to the proposed rule be regulations concerning the Community additional increases in safety. Providing submitted on or before November 13, Residential Care Program and the a safe environment is just as much a 1995. The portion of the proposed rule Contract Program for Veterans With part of enhancing a veteran’s life as concerning the Adult Day Health Care Alcohol and Drug Dependence other requirements of these programs. Program is not adopted and instead is Disorders by incorporating by reference Although some facilities may face withdrawn since the Adult Day Health relevant portions of the latest editions of greater costs due to changes in the Life Care Program and the corresponding the National Fire Protection Association Safety Code, our belief is that the need regulations are no longer in existence Life Safety Code entitled ‘‘NFPA 101, to increase the life safety of veterans in (see 61 FR 21964). Based on the reasons Life Safety Code’’ and ‘‘NFPA 101A, participating programs takes first stated in the proposed rule and this Guide on Alternative Approaches to Life priority. However, the Life Safety Code document, the provisions of the Safety.’’ This is intended to ensure that does provide for relief in appropriate proposed rule concerning the buildings used for treatment and circumstances. In this regard, Appendix Community Residential Care Program residential services for veterans meet A, at A–1–4.4 provides: and the Contract Program for Veterans appropriate fire and safety standards. With Alcohol and Drug Dependence In existing buildings, it is not always Also, this document amends the practical to strictly apply the provisions of Disorders are adopted in this final rule regulations for such programs by this Code. Physical limitations may require with changes as discussed below. delegating authority to each of the disproportionate effort or expense with little The Community Residential Care Veterans Integrated Service Network increase in public safety. In such cases, the Program is authorized under 38 U.S.C. (VISN) Directors of the Veterans Health authority having jurisdiction should be 1730 and the Contract Program for Administration to grant certain satisfied that reasonable life safety is Veterans With Alcohol and Drug ensured. equivalencies or variances to building Dependence Disorders is authorized In existing buildings, it is intended that standards of the Life Safety Code. under 38 U.S.C. 501 and 1720A. any condition that represents a serious threat Further, this final rule does not adopt We received thirteen comments, to life be mitigated by application of the portion of the proposed rule seven of which were identical. All of the appropriate safeguards. It is not intended to concerning the Adult Day Health Care comments concerned the Community require modifications for conditions that do Program since the Adult Day Health Residential Care Program. not represent a significant threat to life, even Care Program and the corresponding The commenters, in general, objected though such conditions are not literally in compliance with the Code. regulations are no longer in existence. to any increased costs which may be EFFECTIVE DATE: This rule is effective associated with operating a residential It was intended that all of Appendix January 2, 1997. care facility under the provisions of the A be included in the material The incorporation by reference of proposed rule. For example, some incorporated by reference since it certain publications listed in the commenters objected to the possibility consists of explanatory material relating regulations is approved by the Director that they would have to install sprinkler to provisions incorporated by reference. of the Federal Register as of January 2, systems. One commenter asserted that Accordingly, the final rule incorporates 1997. his homeowner’s insurance would be by reference the provisions set forth in FOR FURTHER INFORMATION CONTACT: canceled if he had to install a sprinkler Appendix A. Also, it was intended that James R. Kelley, Director, Extended Care system. A number of commenters any equivalencies or variances be Service, for issues relating to the asserted that the Life Safety Code was required to be approved by the Community Residential Care Program at never intended to apply to ‘‘mom and appropriate Veterans Health (202) 273–6342 (this is not a toll-free pop’’ operations and some commenters Administration Veterans Integrated number); and Richard T. Suchinsky, further asserted that small operations, Service Networks (VISN) Director and M.D., Associate Director for Addictive such as those housing eight or fewer this delegation is added to each of the Disorders and Psychiatric veterans, should be exempt from the regulatory provisions affected by this Rehabilitation, for issues relating to the provisions of the Life Safety Code. Some rule. Contract Program for Veterans With commenters asserted that the Life Safety Identical submissions from a number Alcohol and Drug Disorders at (202) Code is arbitrary in the manner in of commenters asserted that the 273–8437 (this is not a toll-free which increasingly stringent criteria are technical committee that serves the number), Veterans Health applied depending upon whether a National Fire Protection Association Administration, Department of Veterans facility has sleeping accommodations (NFPA) in developing the requirements Affairs, 810 Vermont Ave., NW, for more than three residents or more of the Life Safety Code should include Washington, DC 20420. than 16 residents. No changes are made a member from the community SUPPLEMENTARY INFORMATION: On based on these comments except as residential program. In response, we September 11, 1995, we published a discussed below. note that in our view the committee is 63720 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations well balanced and does have Approved: September 9, 1996. these materials was approved by the representation from community Jesse Brown, Director of the Federal Register, in providers. In this regard, representatives Secretary of Veterans Affairs. accordance with 5 U.S.C. 552(a) and 1 of the Association of Residential For the reasons set forth in the CFR part 51. These materials Resources in Minnesota and the preamble, 38 CFR, part 17 is amended incorporated by reference are available American Network of Community and as set forth below: for inspection at the Office of the Options are members on NFPA’s Federal Register, Suite 700, 800 North technical advisory committees PART 17ÐMEDICAL Capitol Street, NW., Washington, DC, responsible for developing standards. 1. The authority citation for Part 17 and the Department of Veterans Affairs, Further, the committees also have continues to read as follows: Office of Regulations Management representation from the VA, insurance (02D), Room 1154, 810 Vermont companies, and state regulatory Authority: 38 U.S.C. 501, 1721, unless otherwise noted. Avenue, NW., Washington, DC 20420. officials. Copies may be obtained from the Commenters asserted this rule might 2. In § 17.63 paragraph (a)(2) is National Fire Protection Association, have a disproportionate effect and revised to read as follows: Battery March Park, Quincy, MA 02269. expense for small entities and that § 17.63 Approval of community residential (For ordering information, call toll-free therefore a cost-benefit analysis should care facilities. 1–800–344–3555.) Any equivalencies or be undertaken. In our view, special * * * * * variances to Department of Veterans consideration for small entities is not (a) * * * Affairs requirements must be approved warranted since the rule already is (2) Meet the requirements of chapters by the appropriate Veterans Health designed for small entities and in all 1–7, 22–23, and 31 and Appendix A of Administration Veterans Integrated likelihood only small entities will the NFPA 101, National Fire Protection Service Networks (VISN) Director. conduct activities affected by this rule. Association’s Life Safety Code (1994 * * * * * The section numbers for the edition), and NFPA 101A, Guide on Alternative Approaches to Life Safety 4. In § 17.82, paragraph (a)(1)(i) is regulations amended by this rulemaking revised to read as follows: are different from those in the proposed (1995 edition), which are incorporated by reference. The institution shall rule because they recently were § 17.82 Contracts for outpatient services changed. Sections 17.51j, 17.53b, and provide sufficient staff to assist patients for veterans with alcohol or drug in the event of fire or other emergency. 17.53c were changed respectively to dependence or abuse disabilities. Incorporation by reference of these sections 17.63, 17.81, and 17.82 (see 61 materials was approved by the Director (a) * * * FR 21964). of the Federal Register, in accordance (1) * * * The Secretary hereby certifies that with 5 U.S.C. 552(a) and 1 CFR part 51. (i) The building must meet the this final rule does not have a These materials incorporated by requirements of the applicable business significant economic impact on a reference are available for inspection at substantial number of small entities as the Office of the Federal Register, Suite occupancy chapters (1–7, 26–27, and they are defined in the Regulatory 700, 800 North Capitol Street, NW., 31) and Appendix A of the NFPA 101, Flexibility Act, 5 U.S.C. 601–612. The Washington, DC, and the Department of National Fire Protection Association’s rule already is designed for small Veterans Affairs, Office of Regulations Life Safety Code (1994 edition) which entities and in all likelihood only small Management (02D), Room 1154, 810 are incorporated by reference. entities will conduct activities affected Vermont Avenue, NW., Washington, DC Incorporation by reference of these by this rule. Therefore, pursuant to 5 20420. Copies may be obtained from the materials was approved by the Director U.S.C. 605(b), this final rule is exempt National Fire Protection Association, of the Federal Register, in accordance from the initial and final regulatory Battery March Park, Quincy, MA 02269. with 5 U.S.C. 552(a) and 1 CFR part 51. flexibility analysis requirement of (For ordering information, call toll-free These materials incorporated by sections 603 and 604. 1–800–344–3555.) Any equivalencies or reference are available for inspection at variances to Department of Veterans the Office of the Federal Register, Suite Catalog Affairs requirements must be approved 700, 800 North Capitol Street, NW., The Catalog of Federal Domestic by the appropriate Veterans Health Washington, DC, and the Department of Assistance Numbers are 64.015 and 64.019. Administration Veterans Integrated Veterans Affairs, Office of Regulations Service Networks (VISN) Director. Management (02D), Room 1154, 810 List of Subjects in 38 CFR Part 17 * * * * * Vermont Avenue, N.W., Washington, Administrative practice and 3. In § 17.81, paragraph (a)(1)(i) is DC 20420. Copies may be obtained from procedure, Alcohol abuse, Alcoholism, revised to read as follows: the National Fire Protection Claims, Day care, Dental health, Drug § 17.81 Contracts for residential treatment Association, Battery March Park, abuse, Foreign relations, Government services for veterans with alcohol or drug Quincy, MA 02269. (For ordering contracts, Grant program—health, Grant dependence or abuse disabilities. information, call toll-free 1–800–344– program—veterans, Health care, Health (a) * * * 3555.) Any equivalencies or variances to facilities, Health professions, Health (1) * * * Department of Veterans Affairs records, Homeless, Incorporation by (i) The building must meet the requirements must be approved by the reference, Medical and dental schools, requirements of the applicable appropriate Veterans Health Medical devices, Medical research, residential occupancy chapters (1–7, Administration Veterans Integrated Medical health programs, Nursing 22–23, and 31) and Appendix A of the Service Networks (VISN) Director. homes, Philippines, Reporting and NFPA 101, National Fire Protection * * * * * recordkeeping requirements, Association’s Life Safety Code (1994 Scholarships and fellowships, Travel edition) which are incorporated by [FR Doc. 96–30574 Filed 11–29–96; 8:45 am] and transportation expenses, Veterans. reference. Incorporation by reference of BILLING CODE 8320±01±P Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63721

ENVIRONMENTAL PROTECTION may also be submitted electronically by or on a food) only if EPA determines AGENCY sending electronic mail (e-mail) to: opp- that the tolerance is ‘‘safe.’’ Section [email protected]. Copies of 408(b)(2)(A)(ii) defines ‘‘safe’’ to mean 40 CFR Part 180 objections and hearing requests must be that ‘‘there is a reasonable certainty that [OPP±300444; FRL±5574±8] submitted as an ASCII file avoiding the no harm will result from aggregate RIN 2070-AB78 use of special characters and any form exposure to the pesticide chemical of encryption. Copies of objections and residue, including all anticipated Triadimefon; Pesticide Tolerances for hearing requests will also be accepted dietary exposures and all other Emergency Exemptions on disks in WordPerfect 5.1 file format exposures for which there is reliable information.’’ This includes exposure AGENCY: Environmental Protection or ASCII file format. All copies of through drinking water, but does not Agency (EPA). objections and hearing requests in electronic form must be identified by include occupational exposure. Section ACTION: Final rule. the docket number [OPP–300444]. No 408(b)(2)(C) requires EPA to give special SUMMARY: This regulation establishes a Confidential Business Information (CBI) consideration to exposure of infants and time-limited tolerance for combined should be submitted through e-mail. children to the pesticide chemical residues of the fungicide triadimefon in Electronic copies of objections and residue in establishing a tolerance and or on the raw agricultural commodity hearing requests on this rule may be to ‘‘ensure that there is a reasonable chili peppers in connection with EPA’s filed online at many Federal Depository certainty that no harm will result to granting of an emergency exemption Libraries. infants and children from aggregate under section 18 of the Federal FOR FURTHER INFORMATION CONTACT: By exposure to the pesticide chemical Insecticide, Fungicide, and Rodenticide mail: David Deegan, Registration residue. . . .’’ Section 18 of FIFRA authorizes EPA Act authorizing use of triadimefon on Division (7505W), Environmental to exempt any Federal or State agency chili peppers in New Mexico. This Protection Agency, 401 M St., SW., from any provision of FIFRA, if EPA regulation establishes a maximum Washington, DC 20460. Office location, determines that ‘‘emergency conditions permissible level for residues of telephone number, and e-mail: Sixth exist which require such exemption.’’ triadimefon in this food pursuant to Floor, Crystal Station #1, 2800 Jefferson This provision was not amended by section 408(l)(6) of the Federal Food, Davis Highway, Arlington, VA 22202. FQPA. EPA has established regulations Drug, and Cosmetic Act, as amended by (703) 308-8327, e-mail: governing such emergency exemptions the Food Quality Protection Act of 1996. [email protected]. This tolerance will expire and be in 40 CFR part 166. SUPPLEMENTARY INFORMATION: EPA, on Section 408(l)(6) requires EPA to revoked automatically without further its own initiative, pursuant to section establish a time-limited tolerance or action by EPA on November 8, 1998. 408(e) and (l)(6) of the Federal Food, exemption from the requirement for a DATES: This regulation becomes Drug, and Cosmetic Act (FFDCA), 21 tolerance for pesticide chemical effective December 2, 1996. This U.S.C. 346a(e) and (l)(6), is establishing residues in food that will result from the regulation expires and is revoked a tolerance for residues of the fungicide use of a pesticide under an emergency automatically without further action by triadimefon, 1-(4-chlorophenoxy)-3,3- exemption granted by EPA under EPA on November 8, 1998. Objections dimethyl-1-(1-H-1,2,4-triazol-1-yl)-2- section 18 of FIFRA. Section 408(l)(6) and requests for hearings must be butanone, in or on chili peppers at 0.5 also requires EPA to promulgate received by EPA on or before January part per million (ppm). This tolerance regulations by August 3, 1997, 31, 1997. will expire and be revoked governing the establishment of ADDRESSES: Written objections and automatically without further action by tolerances and exemptions under hearing requests, identified by the EPA on November 8, 1998. section 408(l)(6) and requires that the docket control number, [OPP–300444], I. Background and Statutory Authority regulations be consistent with section must be submitted to: Hearing Clerk 408(b)(2) and (c)(2) and FIFRA section (1900), Environmental Protection The Food Quality Protection Act of 18. Agency, Rm. M3708, 401 M St., SW., 1996 (FQPA) (Pub. L. 104170) was Section 408(l)(6) allows EPA to Washington, DC 20460. Fees signed into law August 3, 1996. FQPA establish tolerances or exemptions from accompanying objections and hearing amends both the Federal Food, Drug, the requirement for a tolerance, in requests shall be labeled ‘‘Tolerance and Cosmetic Act (FFDCA), 21 U.S.C. connection with EPA’s granting of Petition Fees’’ and forwarded to: EPA 301 et seq., and the Federal Insecticide, FIFRA section 18 emergency Headquarters Accounting Operations Fungicide, and Rodenticide Act exemptions, without providing notice or Branch, OPP (Tolerance Fees), P.O. Box (FIFRA), 7 U.S.C. 136 et seq. The FQPA a period for public comment. Thus, 360277M, Pittsburgh, PA 15251. A copy amendments went into effect consistent with the need to act of any objections and hearing requests immediately. Among other things, expeditiously on requests for emergency filed with the Hearing Clerk identified FQPA amends FFDCA to bring all EPA exemptions under FIFRA, EPA can by the docket control number, [OPP– pesticide tolerance-setting activities establish such tolerances or exemptions 300444], must also be submitted to: under a new section 408 with a new under the authority of section 408(e) Public Response and Program Resources safety standard and new procedures. and (l)(6) without notice and comment Branch, Field Operations Division These activities are described below and rulemaking. (7506C), Office of Pesticide Programs, discussed in greater detail in the final In establishing section 18-related Environmental Protection Agency, 401 rule establishing the time-limited tolerances and exemptions during this M St., SW., Washington, DC 20460. In tolerance associated with the emergency interim period before EPA issues the person, bring a copy of objections and exemption for use of propiconazole on section 408(l)(6) procedural regulation hearing requests to Rm. 1132, CM #2, sorghum (61 FR 58135, November 13, and before EPA makes its broad policy 1921 Jefferson Davis Hwy., Arlington, 1996). decisions concerning the interpretation VA. New section 408(b)(2)(A)(i) allows and implementation of the new section A copy of objections and hearing EPA to establish a tolerance (the legal 408, EPA does not intend to set requests filed with the Hearing Clerk limit for a pesticide chemical residue in precedents for the application of section 63722 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

408 and the new safety standard to other on this pesticide indicate that the below the RfD (expressed as 100 percent tolerances and exemptions. Rather, residues are not safe. or less of the RfD) is generally these early section 18 tolerance and EPA has not made any decisions considered by EPA to pose a reasonable exemption decisions will be made on a about whether triadimefon meets the certainty of no harm. case-by-case basis and will not bind requirements for registration under Lifetime feeding studies in two EPA as it proceeds with further FIFRA section 3 for use on chili species of laboratory animals are rulemaking and policy development. peppers, or whether a permanent conducted to screen pesticides for EPA intends to act on section 18-related tolerance for triadimefon for chili cancer effects. When evidence of tolerances and exemptions that clearly peppers would be appropriate. This increased cancer is noted in these qualify under the new law. action by EPA does not serve as a basis studies, the Agency conducts a weight for registration of triadimefon by a State of the evidence review of all relevant II. Emergency Exemption for for special local needs under FIFRA toxicological data including short-term Triadimefon on Chili Peppers and section 24(c). Nor does this action serve and mutagenicity studies and structure FFDCA Tolerances as the basis for any State other than New activity relationship. Once a pesticide On September 10, 1996, the New Mexico to use this product on this crop has been classified as a potential human Mexico Department of Agriculture under section 18 of FIFRA without carcinogen, different types of risk availed of itself the authority to declare following all provisions of section 18 as assessments (e.g., linear low dose the existence of a crisis situation within identified in 40 CFR part 166. For extrapolations or margin of exposure the state, thereby authorizing use under additional information regarding the calculation based on the appropriate FIFRA section 18 of triadimefon on chili emergency exemption for triadimefon, NOEL) will be carried out based on the peppers to control powdery mildew contact the Agency’s Registration nature of the carcinogenic response and (Oidiopsis taurica). New Mexico stated Division at the address provided above. the Agency’s knowledge of its mode of that emergency conditions developed action. III. Risk Assessment and Statutory In examining aggregate exposure, due to unusually wet conditions in the Findings chili pepper growing regions of the FFDCA section 408 requires that EPA EPA performs a number of analyses to state, which resulted in an outbreak of take into account available and reliable determine the risks from aggregate information concerning exposure from powdery mildew. This pest, New exposure to pesticide residues. First, the pesticide residue in the food in Mexico asserts, can have devastating EPA determines the toxicity of question, residues in other foods for effects on growers’ production and pesticides based primarily on which there are tolerances, and other revenue. toxicological studies using laboratory non-occupational exposures, such as As part of its assessment of this crisis animals. These studies address many where residues leach into groundwater declaration, EPA assessed the potential adverse health effects, including (but or surface water that is consumed as risks presented by residues of not limited to) reproductive effects, drinking water. Dietary exposure to triadimefon in or on chili peppers. In developmental toxicity, toxicity to the residues of a pesticide in a food doing so, EPA considered the new safety nervous system, and carcinogenicity. commodity are estimated by standard in FFDCA section 408(b)(2), For many of these studies, a dose multiplying the average daily and EPA decided to grant the section 18 response relationship can be consumption of the food forms of that exemptions only after concluding that determined, which provides a dose that commodity by the tolerance level or the the necessary tolerance under FFDCA causes adverse effects (threshold effects) anticipated pesticide residue level. The section 408(l)(6) would clearly be and doses causing no observed effects Theoretical Maximum Residue consistent with the new safety standard (the ‘‘no-observed effect level’’ or Contribution (TMRC) is an estimate of and with FIFRA section 18. This ‘‘NOEL’’). the level of residues consumed daily if tolerance for triadimefon will permit the Once a study has been evaluated and each food item contained pesticide marketing of chili peppers treated in the observed effects have been residues equal to the tolerance. The accordance with the provisions of the determined to be threshold effects, EPA TMRC is a ‘‘worst case’’ estimate since section 18 emergency exemption. generally divides the NOEL from the it is based on the assumptions that food Consistent with the need to move study with the lowest NOEL by an contains pesticide residues at the quickly on the emergency exemption uncertainty factor (usually 100 or more) tolerance level and that 100 percent of and to ensure that the resulting food is to determine the Reference Dose (RfD). the crop is treated by pesticides that safe and lawful, EPA is issuing this The RfD is a level at or below which have established tolerances. If the tolerance without notice and daily aggregate exposure over a lifetime TMRC exceeds the RfD or poses a opportunity for public comment under will not pose appreciable risks to lifetime cancer risk that is greater than section 408(e) as provided in section human health. An uncertainty factor approximately one in a million, EPA 408(l)(6). Although this tolerance will (sometimes called a ‘‘safety factor’’) of attempts to derive a more accurate expire and be revoked automatically 100 is commonly used since it is exposure estimate for the pesticide by without further action by EPA on assumed that people may be up to 10 evaluating additional types of November 8, 1998, under FFDCA times more sensitive to pesticides than information (anticipated residue data section 408(l)(5), residues of triadimefon the test animals, and that one person or and/or percent of crop treated data) not in excess of the amount specified in subgroup of the population (such as which show, generally, that pesticide the tolerance remaining in or on chili infants and children) could be up to 10 residues in most foods when they are peppers after that date will not be times more sensitive to a pesticide than eaten are well below established unlawful, provided the pesticide is another. In addition, EPA assesses the tolerances. applied during the term of, and in potential risks to infants and children accordance with all the conditions of, based on the weight of the evidence of IV. Aggregate Risk Assessment and the emergency exemptions. EPA will the toxicology studies and determines Determination of Safety take action to revoke this tolerance whether an additional uncertainty factor Consistent with section 408(b)(2)(D), earlier if any experience with, scientific is warranted. Thus, an aggregate daily EPA has reviewed the available data on, or other relevant information exposure to a pesticide residue at or scientific data and other relevant Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63723 information in support of this action. B. Aggregate Exposure mobile and persistent and have the Triadimefon is already registered by Tolerances have been established (40 potential to leach into groundwater. EPA for use on almonds, apples, CFR 180.410) for the combined residues There is no established Maximum apricots, barley, chick pea seed, of triadimefon and its metabolites Concentration Level for residues of cucurbits, grapes, grass, nectarines, containing chlorophenoxy and triazole triadimefon in drinking water. No peaches, pears, pineapples, plums, moieties (expressed as the fungicide) in drinking water health advisory levels raspberries, sugar beets, and wheat (see or on various raw agricultural have been issued for triadimefon or its 40 CFR 180.410 for specific tolerances). commodities ranging from 0.04 ppm in metabolite triadimenol. The ‘‘Pesticides At this time, EPA is not in possession milk, eggs, and fat, meat and meat by- in Groundwater Database (EPA 734-12- 92-001, September 1992) indicated that of a registration application for products in hogs and poultry to 145.0 triadimefon on chili peppers. However, triadimefon was monitored for in 14 ppm in grass seed cleanings (including based on information submitted to the wells in California from 1984 to 1989. hulls). There are no animal feed items Agency, EPA has sufficient data to There were no detectable residues (limit associated with chili peppers, therefore assess the hazards of triadimefon and to of detection was not stated). The Agency the livestock dietary burden will not be make a determination on aggregate does not have available data to perform increased by this section 18 exemption. exposure, consistent with section a quantitative drinking water risk In conducting this exposure 408(b)(2), for a time-limited tolerance assessment for triadimefon at this time. assessment, EPA has made very for residues of triadimefon on chili Previous experience with more conservative assumptions--that 100% of peppers at 0.5 ppm. EPA’s assessment of persistent and mobile pesticides for chili peppers and all other commodities the dietary exposures and risks which there have been available data to having triadimefon tolerances will associated with establishing the perform quantitative risk assessments contain triadimefon residues and those tolerance follows. have demonstrated that drinking water residues would be at the level of the exposure is typically a small percentage A. Toxicological Profile tolerance--which result in an of the total exposure when compared to 1. Chronic toxicity. Based on the overestimate of human dietary the total dietary exposure. This available chronic toxicity data, EPA has exposure. Thus, in making a safety observation holds even for pesticides established the RfD for triadimefon at determination for this tolerance, EPA is detected in wells and drinking water at 0.04 milligrams(mg)/kilogram(kg)/day. taking into account this conservative levels nearing or exceeding established This RfD is based on a 2-year dog exposure assessment. MCLs. Based on this experience and the feeding study with a NOEL of 11.4 mg/ 1. Chronic exposure. Given the Agency’s best scientific judgement, EPA kg/day and an uncertainty factor of 300. emergency nature of this request for the concludes that it is not likely that the An uncertainty factor of 300 was use of triadimefon and the resulting potential exposure from residues of applied to account for inter-species need for a timely analysis and risk triadimefon in drinking water added to extrapolation (10), intra-species assessment, EPA has utilized the TMRC the current dietary exposure will result variability (10), and the lack of an to estimate chronic dietary exposure in an exposure which exceeds the RfD. adequate reproduction study (3). from the tolerance for triadimefon on Triadimefon is currently registered for Decreased food intake, depression in chili peppers at 0.5 ppm. The TMRC is residential use as a preservative weight gain, and significantly (p <0.05) obtained by multiplying the tolerance treatment for wood and for lawn and increased alkaline phosphatase activity level residue for chili peppers by ornamental uses. At this time, the in both sexes were the effects observed average consumption data, which Agency does not have reliable data at the lowest effect level (LEL). estimate the amount of chili peppers which would allow quantitative 2. Acute toxicity. Agency toxicologists and chili peppers products eaten by incorporation of risk from these uses recommended that the developmental various population subgroups. This into a human health risk assessment. NOEL from the rabbit developmental calculation is performed as well for Given the time-limited nature of this toxicity study (20 mg/kg/day) be used every food having existing triadimefon request, the need to make emergency for acute dietary risk calculations. The tolerances. The risk assessment is exemption decisions quickly, and the rabbit developmental study is discussed therefore considered to be significant scientific uncertainty at this below under Unit IV.D. of this overestimated. The Agency has time about how to aggregate non- preamble. The population of concern for extensive experience refining chronic dietary, non-occupational exposure with this risk assessment is females 13+ years dietary risk assessments for a broad dietary exposure, the Agency will make old. range of pesticide chemicals. It is the its safety determination for this 3. Carcinogenicity. Using its Agency’s experience that when the tolerance based on those factors which Guidelines for Carcinogen Risk chronic dietary risk assessment is it can reasonably integrate into a risk Assessment published September 24, refined using ARC (anticipated residue assessment. 1986 (51 FR 33992), EPA has classified contribution) estimates derived from 2. Acute exposure. EPA has not triadimefon as Group ‘‘C’’ for anticipated residue levels and percent of estimated non-occupational exposures carcinogenicity (possible human crop treated data, the percent of the RfD other than dietary for triadimefon. carcinogen) based on the results of occupied by the ARC is generally in the Acceptable, reliable data are not carcinogenicity studies in two species. range of an order of magnitude lower currently available with which to assess The classification as Group C was based than the percent of the RfD occupied by acute risk. Triadimefon is registered for on borderline statistically significant the unrefined TMRC. outdoor residential use (lawn use). increases in thyroid adenomas in male Other potential sources of exposure of While dietary and residential scenarios rats, and increases in liver adenomas in the general population to residues of could possibly occur in a single day, both sexes of mice. Because the tumors pesticides are residues in drinking water triadimefon would rarely be present on were benign, and there were no and exposure from non-occupational both the food eaten and the lawn on that apparent genotoxicity concerns, the sources. single day. Even assuming this were the Cancer Peer Review Committee Based on the available studies used in case, it is yet more unlikely that recommended the RfD approach for EPA’s assessment of environmental risk, residues would be present at tolerance quantitation of human risk. triadimefon and its metabolites are level on all food eaten that day for 63724 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations which triadimefon tolerances exist, as is kg/day and the LOEL 120 mg/kg/day. considered in conjunction with a assumed in the acute dietary risk The NOEL for developmental toxicity refined exposure estimate, it is unlikely analysis, and on the lawn that same day. was 20 mg/kg/day and the LOEL was 50 that the dietary risk will exceed 100 Because the acute dietary exposure mg/kg/day. Effects seen at the percent of the RfD. Therefore, taking estimate assumes tolerance level developmental LEL in the rabbit study into account the completeness and residues and 100% crop treated for all were irregular spinous process and reliability of the toxicity data and the crops evaluated it is a large over- ossification of various bones. conservative exposure assessment, EPA estimate of exposure and it is An acceptable 2-generation concludes that there is a reasonable considered to be protective of any acute reproduction study in rats is not certainty that no harm will result to exposure scenario. available. infants and children from aggregate At this time, the Agency has not made 1. Chronic risk. Using the exposure to triadimefon residues. a determination that triadimefon and conservative exposure assumptions 2. Acute risk. At present, the acute other substances that may have a described above, EPA has concluded dietary MOE for females 13+ years old common mode of toxicity would have that the percentage of the RfD that will is 555. This MOE calculation was based cumulative effects. For purposes of this be utilized by aggregate exposure to on the developmental NOEL of 20 mg/ tolerance only, the Agency is residues of triadimefon ranges from 25.6 kg/day, compared to the less sensitive considering only the potential risks of percent for children 7-12 years old, up maternal NOEL of 50 mg/kg day from triadimefon in its aggregate exposure. to 74.8 percent for non-nursing infants. the same rabbit developmental study. FFDCA section 408 provides that EPA This risk assessment also assumed C. Determination of Safety for U.S. shall apply an additional safety factor Population 100% crop treated with tolerance level for infants and children in the case of residues on all treated crops consumed, 1. Chronic risk. Using the threshold effects to account for pre- and resulting in a significant over estimate conservative exposure assumptions post-natal toxicity and the completeness of dietary exposure. The large acute described above and taking into account of the data base unless EPA concludes dietary MOE calculated for females 13+ the completeness and reliability of the that a different margin of safety is years old provides assurance that there toxicity data, EPA has concluded that appropriate. Based on current is a reasonable certainty of no harm for dietary exposure to triadimefon will toxicological data requirements, the data both females 13+ years and the pre-natal utilize 7.8 percent of the RfD for the base for triadimefon relative to pre- and development of infants. U.S. population. EPA generally has no post-natal toxicity is not complete. An concern for exposures below 100 additional 3-fold uncertainty factor has V. Other Considerations percent of the RfD because the RfD already been incorporated into the The metabolism of triadimefon in represents the level at or below which calculation of the RfD because of the plants and animals is adequately daily aggregate dietary exposure over a absence of an acceptable reproduction understood for the purposes of this lifetime will not pose appreciable risks study. The reproduction study would tolerance. There are no Codex maximum to human health. Acceptable, reliable provide additional information residue levels established for residues of data are not available to quantitatively regarding post-natal toxicity to infants triadimefon on chili peppers. There is a assess risk from drinking water or from and children. practical analytical method for detecting residential uses. However, EPA The Agency notes that there is and measuring levels of triadimefon in concludes that there is a reasonable approximately a two-fold difference or on food with a limit of detection that certainty that no harm will result from between the developmental NOEL of 20 allows monitoring of food with residues aggregate exposure to triadimefon mg/kg/day from the rabbit at or above the levels set in this residues. developmental toxicity study and the tolerance. Enforcement methods are 2. Acute risk. For the population NOEL of 11.4 mg/kg/day from the 2-year published in PAM Vol. II Pesticide Reg. subgroup of concern, females 13+ years dog feeding study which was the basis Sec. 180.410 as Methods I and II. old, the calculated Margin Of Exposure of the RfD. It is further noted that in the (MOE) value is 555. This MOE does not rabbit developmental toxicity study, the VI. Conclusion exceed the Agency’s level of concern for developmental NOEL of 20 mg/kg/day is Therefore, a tolerance in connection acute dietary exposure. lower than the maternal systemic NOEL with the FIFRA section 18 emergency of 50 mg/kg/day, suggesting the exemptions is established for residues of D. Determination of Safety for Infants possibility of increased sensitivity for triadimefon in chili peppers at 0.5 ppm. and Children the pre-natal child. This tolerance will expire and be In assessing the potential for The TMRC value for the most highly automatically revoked without further additional sensitivity of infants and exposed infant and children subgroup action by EPA on November 8, 1998. children to residues of triadimefon, EPA (non-nursing infants <1 year old) considered data from developmental occupies 74.8% of the RfD. However, VII. Objections and Hearing Requests toxicity studies in the rat and rabbit. this calculation also assumes 100% crop The new FFDCA section 408(g) The developmental toxicity studies are treated and uses tolerance level residues provides essentially the same process designed to evaluate adverse effects on for all commodities. As mentioned for persons to ‘‘object’’ to a tolerance the developing organism resulting from previously, refinement of the dietary regulation issued by EPA under new pesticide exposure during prenatal risk assessment by using percent of crop section 408(e) and (l)(6) as was provided development. treated and anticipated residue data in the old section 408 and in section In the developmental toxicity study in would likely greatly reduce the dietary 409. However, the period for filing rats, the maternal systemic NOEL was exposure estimate and result in an objections is 60 days, rather than 30 30 mg/kg/day and the LOEL 90 mg/kg/ anticipated residue contribution (ARC) days. EPA currently has procedural day. The NOEL for developmental which would occupy a percent of the regulations which govern the toxicity was 30 mg/kg/day and the RfD that is substantially lower than the submission of objections and hearing LOEL was 90 mg/kg/day. In the currently calculated TMRC value. requests. These regulations will require developmental toxicity study in rabbits, Should an additional uncertainty some modification to reflect the new the maternal systemic NOEL was 50 mg/ factor be deemed appropriate, when law. However, until those modifications Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63725 can be made, EPA will continue to use VIII. Public Docket analysis requirements of the Regulatory those procedural regulations with A record has been established for this Flexibility Act, 5 U.S.C. 604(a), do not appropriate adjustments to reflect the rulemaking under docket number [OPP– apply. new law. 300444]. A public version of this record, Under 5 U.S.C. 801(a)(1)(A) of the Any person may, by January 31, 1996, which does not include any information Administrative Procedure Act (APA) as file written objections to any aspect of claimed as CBI, is available for amended by the Small Business this regulation (including the automatic inspection from 8 a.m. to 4:30 p.m., Regulatory Enforcement Fairness Act of revocation provision) and may also Monday through Friday, excluding legal 1996 (Title II of Pub. L. 104-121, 110 request a hearing on those objections. holidays. The public record is located in Stat. 847), EPA submitted a report Objections and hearing requests must be Room 1132 of the Public Response and containing this rule and other required filed with the Hearing Clerk, at the Program Resources Branch, Field information to the U.S. Senate, the U.S. address given above (40 CFR 178.20). A Operations Division (7506C), Office of House of Representatives, and the copy of the objections and/or hearing Pesticide Programs, Environmental Comptroller General of the General requests filed with the Hearing Clerk Protection Agency, Crystal Mall #2, Accounting Office prior to publication should be submitted to the OPP docket 1921 Jefferson Davis Highway, of the rule in today’s Federal Register. for this rulemaking. The objections Arlington, VA. This rule is not a ‘‘major rule’’ as submitted must specify the provisions The official record for this defined by 5 U.S.C. 804(2) of the APA of the regulation deemed objectionable rulemaking, as well as the public as amended. version, as described above, is kept in and the grounds for the objections (40 List of Subjects in 40 CFR Part 180 CFR 178.25). Each objection must be paper form. Accordingly, in the event accompanied by the fee prescribed by there are objections and hearing Environmental protection, 40 CFR 180.33(i). If a hearing is requests, EPA will transfer any copies of Administrative practice and procedure, requested, the objections must include a objections and hearing requests received Agricultural commodities, Pesticides statement of the factual issues on which electronically into printed, paper form and pests, Reporting and recordkeeping as they are received and will place the a hearing is requested, the requestor’s requirements. paper copies in the official rulemaking contentions on such issues, and a Dated: November 20, 1996. record. The official rulemaking record is summary of any evidence relied upon the paper record maintained at the Daniel M. Barolo, by the requestor (40 CFR 178.27). A address in ‘‘ADDRESSES’’ at the Director, Office of Pesticide Programs. request for a hearing will be granted if beginning of this document. Therefore, 40 CFR Chapter I is the Administrator determines that the amended as follows: material submitted shows the following: IX. Regulatory Assessment There is genuine and substantial issue Requirements PART 180Ð[AMENDED] of fact; there is a reasonable possibility Under Executive Order 12866 (58 FR that available evidence identified by the 51735, October 4, 1993), this action is 1. The authority citation for part 180 requestor would, if established, resolve not a ‘‘significant regulatory action’’ continues to read as follows: one or more of such issues in favor of and, since this action does not impose Authority: 21 U.S.C. 346a and 371. the requestor, taking into account any information collection requirements uncontested claims or facts to the as defined by the Paperwork Reduction 2. In 180.410, by adding a new contrary; and resolution of the factual Act, 44 U.S.C. 3501 et seq., it is not paragraph (c) to read as follows: issues in the manner sought by the subject to review by the Office of requestor would be adequate to justify § 180.410 1-(4-chlorophenoxy)-3,3- Management and Budget. In addition, dimethyl-1-(1-H-1,2,4-triazol-1-yl)-2- the action requested (40 CFR 178.32). this action does not impose any butanone; tolerances for residues. Information submitted in connection enforceable duty or contain any with an objection or hearing request unfunded mandate as described in the ***** may be claimed confidential by marking Unfunded Mandates Reform Act of 1995 (c) A time-limited tolerance is any part or all of that information as (Pub. L. 104–4), or require prior established for residues of the fungicide Confidential Business Information (CBI). consultation with State officials as triadimefon 1-(4-chlorophenoxy)-3,3- Information so marked will not be specified by Executive Order 12875 (58 dimethyl-1-(1-H-1,2,4-triazol-1-yl)-2- disclosed except in accordance with FR 58093, October 28, 1993), or special butanone in connection with use of the procedures set forth in 40 CFR part 2. considerations as required by Executive pesticide under the section 18 A copy of the information that does not Order 12898 (59 FR 7629, February 16, emergency exemption granted by EPA. contain CBI must be submitted for 1994). The tolerance is specified in the inclusion in the public record. Because FFDCA section 408(l)(6) following table. The tolerance expires Information not marked confidential permits establishment of this regulation and is automatically revoked on the date may be disclosed publicly by EPA without a notice of proposed specified in the table without further without prior notice. rulemaking, the regulatory flexibility action by EPA.

Commodity Parts per million Expiration/Revocation Date

Chili peppers ...... 0.5 November 8, 1997 63726 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

[FR Doc. 96–30552 Filed 11–29–96; 8:45 am] of any comments containing II. Applicability of General Provisions BILLING CODE 6560±50±F confidential business information (CBI) General provisions for SNURs appear must also be submitted. Nonconfidential under subpart A of 40 CFR part 721. versions of comments on this rule will These provisions describe persons 40 CFR Part 721 be placed in the rulemaking record and subject to the rule, recordkeeping [OPPTS±50623; FRL±4964±3] will be available for public inspection. requirements, exemptions to reporting Comments and data may also be RIN 2070±AB27 requirements, and applicability of the submitted electronically by sending rule to uses occurring before the electronic mail (e-mail) to: effective date of the final rule. Significant New Uses of Certain [email protected]. Electronic Chemical Substances Provisions relating to user fees appear at comments must be submitted as an 40 CFR part 700. Persons subject to this AGENCY: Environmental Protection ASCII file avoiding the use of special SNUR must comply with the same Agency (EPA). characters and any form of encryption. notice requirements and EPA regulatory Comments and data will also be ACTION: Final rule. procedures as submitters of PMNs under accepted on disks in WordPerfect in 5.1 section 5(a)(1)(A) of TSCA. In particular, SUMMARY: EPA is promulgating file format or ASCII file format. All these requirements include the significant new use rules (SNURs) under comments and data in electronic form information submission requirements of section 5(a)(2) of the Toxic Substances must be identified by the docket number section 5(b) and 5(d)(1), the exemptions Control Act (TSCA) for certain chemical 50623. No CBI should be submitted authorized by section 5 (h)(1), (h)(2), substances which were the subject of through e-mail. Electronic comments on (h)(3), and (h)(5), and the regulations at premanufacture notices (PMNs) and this final rule may be filed online at 40 CFR part 720. Once EPA receives a subject to TSCA section 5(e) consent many Federal Depository Libraries. SNUR notice, EPA may take regulatory orders issued by EPA. Today’s action Additional information on electronic action under section 5(e), 5(f), 6, or 7 to requires persons who intend to submissions can be found in Unit X of control the activities on which it has manufacture, import, or process these this document. received the SNUR notice. If EPA does substances for a significant new use to FOR FURTHER INFORMATION CONTACT: not take action, EPA is required under notify EPA at least 90 days before Susan Hazen, Director, Environmental section 5(g) to explain in the Federal commencing the manufacturing or Assistance Division (7408), Office of Register its reasons for not taking processing of the substance for a use Toxic Substances, Environmental action. designated by this SNUR as a significant Protection Agency, Rm. E–543B, 401 M Persons who intend to export a new use. The required notice will St., SW., Washington, DC 20460, substance identified in a proposed or provide EPA with the opportunity to telephone: (202) 554–1404, TDD: (202) final SNUR are subject to the export evaluate the intended use, and if 554–0551; e-mail: TSCA- notification provisions of TSCA section necessary, to prohibit or limit that [email protected]. 12(b). The regulations that interpret activity before it occurs. EPA is SUPPLEMENTARY INFORMATION: This section 12(b) appear at 40 CFR part 707. promulgating this SNUR using direct SNUR will require persons to notify Persons who intend to import a final procedures. EPA at least 90 days before commencing chemical substance identified in a final DATES: The effective date of this rule is manufacturing or processing a substance SNUR are subject to the TSCA section January 31, 1997. This rule shall be for any activity designated by this SNUR 13 import certification requirements, promulgated for purposes of judicial as a significant new use. The supporting which are codified at 19 CFR 12.118 review at 1 p.m. (e.s.t.) on December 16, rationale and background to this rule are through 12.127 and 127.28. Such 1996. more fully set out in the preamble to persons must certify that they are in If EPA receives notice before January EPA’s first direct final SNURs published compliance with SNUR requirements. 2, 1997 that someone wishes to submit in the Federal Register of April 24, 1990 The EPA policy in support of the import adverse or critical comments on EPA’s (55 FR 17376). Consult that preamble for certification appears at 40 CFR part 707. action in establishing a SNUR for one or further information on the objectives, III. Substances Subject to This Rule more of the chemical substances subject rationale, and procedures for the rules to this rule, EPA will withdraw the and on the basis for significant new use EPA is establishing significant new SNUR for the substance for which the designations including provisions for use and recordkeeping requirements for notice of intent to comment is received developing test data. the following chemical substances and will issue a proposed SNUR under 40 CFR part 721, subpart E. In providing a 30-day period for public I. Authority this unit, EPA provides a brief comment. Section 5(a)(2) of TSCA (15 U.S.C. description for each substance, ADDRESSES: Each comment or notice of 2604(a)(2)) authorizes EPA to determine including its PMN number, chemical intent to submit adverse or critical that a use of a chemical substance is a name (generic name if the specific name comment must bear the docket control ‘‘significant new use.’’ EPA must make is claimed as CBI), CAS number (if number OPPTS–50623 and the name(s) this determination by rule after assigned), basis for the action taken by of the chemical substance(s) subject to considering all relevant factors, EPA in the section 5(e) consent order or the comment. All comments should be including those listed in section 5(a)(2). as a non-section 5(e) SNUR for the sent in triplicate to: OPPT Document Once EPA determines that a use of a substance (including the statutory Control Officer (7407), Office of chemical substance is a significant new citation and specific finding), toxicity Pollution Prevention and Toxics, use, section 5(a)(1)(B) of TSCA requires concern, and the CFR citation assigned Environmental Protection Agency, 401 persons to submit a notice to EPA at in the regulatory text section of this M Street, SW., Room G–099, East least 90 days before they manufacture, rule. The specific uses which are Tower, Washington, DC 20460. import, or process the substance for that designated as significant new uses are All comments which are claimed use. The mechanism for reporting under cited in the regulatory text section of confidential must be clearly marked as this requirement is established under 40 this document by reference to 40 CFR such. Three additional sanitized copies CFR 721.10. part 721, subpart B where the significant Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63727 new uses are described in detail. Certain potentially substantial human exposures findings that this substance is expected new uses, including production limits would be subject to health effects testing to be produced in substantial quantities and other uses designated in the rule are for mutagenicity, acute effects, and and there may be significant or claimed as CBI. The procedure for subchronic effects. However, for these substantial human exposure to the obtaining confidential information is set substances, the short-term toxicity substances. out in Unit VII of this preamble. testing required by the section 5(e) order Recommended testing: EPA has Where the underlying section 5(e) is usually completed within 1 to 2 years determined that a 28-day oral study order prohibits the PMN submitter from of notice of commencement. EPA’s (OECD 407), an acute oral study (OPPTS exceeding a specified production limit experience with exposure-based SNURs 870.1100 test guideline), an ames assay without performing specific tests to requiring short-term testing is that the (40 CFR 798.5265), a mouse determine the health or environmental SNUR is often revoked within 1 to 2 micronucleus assay by the effects of a substance, the tests are years when the test results are received. intraperitoneal route (40 CFR 798.5395), described in this unit. As explained Rather than issue and revoke SNURs in and a developmental toxicity study in further in Unit VI of this preamble, the such a short span of time, EPA will one species by the oral route (40 CFR SNUR for such substances contains the defer publication of exposure-based 798.4900), would help characterize same production limit, and exceeding SNURs until either a notice of possible environmental effects of the the production limit is defined as a commencement (NOC) or data substance. The PMN submitter of P–91– significant new use. Persons who intend demonstrating risk are received unless 1297, P–91–1298, and P–91–1299 has to exceed the production limit must the toxicity testing required is long- agreed not to exceed the production notify the Agency by submitting a term. EPA is issuing this explanation volume limit without performing these significant new use notice (SNUN) at and notification as required in 40 CFR tests on one of the PMN substances. least 90 days in advance. In addition, 721.160(a)(2) as it has determined that CFR citation: 40 CFR 721.979. this unit describes tests that are SNURs are not needed at this time for PMN Number P±93±1694 recommended by EPA to provide these substances which are subject to a sufficient information to evaluate the final section 5(e) consent order under Chemical name: 3-(Dichloroacetyl)-5-(2- substance, but for which no production TSCA. furanyl)-2,2-dimethyloxazolidine. limit has been established in the section CAS number: 121776–57–6. 5(e) order. Descriptions of PMN Numbers P±91±1210 and P±92± Effective date of section 5(e) consent recommended tests are provided for 714 order: November 29, 1994. informational purposes. Chemical name: (generic) Aliphatic Basis for section 5(e) consent order: The Data on potential exposures or polyisocyanates. order was issued under section 5 releases of the substances, testing other CAS number: Not available. (e)(1)(A)(i) and (e)(1)(A)(ii)(I) of TSCA than that specified in the section 5(e) Effective date of section 5(e) consent based on a finding that this substance order for the substances, or studies on order: April 26, 1995. may present an unreasonable risk of analogous substances, which may Basis for section 5(e) consent order: The injury to human health and the demonstrate that the significant new order was issued under section environment. uses being reported do not present an 5(e)(1)(A)(i) and (e)(1)(A)(ii)(I) of TSCA Toxicity concern: The PMN substance unreasonable risk, may be included based on a finding that this substance and similar chemicals have been shown with significant new use notification. may present an unreasonable risk of to cause oncogenicity, maternal and Persons submitting a SNUN must injury to human health. developmental toxicity, reproductive comply with the same notice Toxicity concern: Test data on the toxicity, systemic toxicity (liver and requirements and EPA regulatory substances and similar isocyanates have thymus), and environmental toxicity in procedures as submitters of PMNs, as shown them to cause skin sensitization test organisms. stated in 40 CFR 721.1(c), including and chronic lung toxicity in test Recommended testing: No testing submission of test data on health and animals. recommended. Data on potential environmental effects as described in 40 Recommended testing: EPA has exposures or releases of the substance, CFR 720.50. determined that the results of a 90-day testing other than that specified in the EPA is not publishing SNURs for chronic inhalation toxicity study (40 section 5(e) order for the substance, or PMNs P–94–357, P–94–658, P–95–1777, CFR 798.3260) would help to studies on analogous substances, which P–94–1779, P–94–1799/1800/1801, P– characterize the possible human health may demonstrate that the significant 94–2237, P–95–92, P–95–142, and P– risks caused by the manufacture, new uses being reported do not present 95–143 which are subject to a final import, processsing, and use of the PMN an unreasonable risk, may be included TSCA section 5(e) consent order. The substances. with significant new use notification. section 5(e) consent orders for these CFR citation: 40 CFR 721.4497. CFR citation: 40 CFR 721.5545. substances are derived from an exposure finding based solely on substantial PMN Numbers P±91±1299, P±95±1667, PMN Number P±94±351 production volume and significant or P±95±1298, and P±95±1297 Chemical name: (generic) Halogenated substantial human exposure and/or Chemical name: l-Aspartic acid, indane. release to the environment of substantial homopolymer and ammonium and CAS number: Not available. quantities. For these cases there were potassium salts. Effective date of section 5(e) consent limited or no toxicity data available for CAS number: 25608–40–6 (P–91–1299 order: January 30, 1995. the PMN substances. In such cases, EPA and P–95–1667) and 64723–18–8 (P–91– Basis for section 5(e) consent order: The regulates the new chemical substances 1298). order was issued under section 5 under section 5(e) by requiring certain Effective date of section 5(e) consent (e)(1)(A)(i) and (e)(1)(A)(ii)(I) of TSCA toxicity tests. For instance, chemical order: March 29, 1993. based on a finding that this substance substances with potentially substantial Basis for section 5(e) consent order: The may present an unreasonable risk of releases to surface waters would be order was issued under section 5 injury to health. subject to toxicity testing of aquatic (e)(1)(A)(i), (e)(1)(A)(ii)(I), and Toxicity concern: Similar chemicals organisms and chemicals with (e)(1)(A)(ii)(II), of TSCA based on have been shown to cause oncogenicity 63728 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations in test organisms. Laboratory animal the Karol method (Toxicology and expected to be produced in substantial and human epidemiological studies of Applied Pharmacology 68:229–241 quantities, and may reasonably be halogenated dibenzodioxins and (1983)) or an equivalent method are expected to enter the environment in dibenzofurans have shown mutagenic needed to help characterize the lung substantial quantities. and oncogenic effects; these may form effects and pulmonary sensitization, Recommended testing: EPA has also as a by-product of manufacture of the respectively. An acute algal (40 CFR determined that a one-species PMN substance or during the 797.1050), an acute daphnid (40 CFR developmental toxicity study (40 CFR incineration of the polymer matrices 797.1300), and an acute fish (40 CFR 798.4900) by the oral route would help that contain the PMN substance. 797.1400) study are needed to help characterize possible health effects of Recommended testing: (1) Dioxin/Furan characterize the aquatic toxicity effects the substance. The PMN submitter has contamination study; and (2) of the PMN substance. The PMN agreed not to exceed the production incineration simulation testing (protocol submitter has agreed not to exceed a volume limit without performing this guidelines are available in the March 29, production volume limit without test on P–94–1639. 1991, Midwest Research Institute report performing the 90-day subchronic and CFR citation: 40 CFR 721.3628. entitled ‘‘Guidelines for the pulmonary sensitization studies. PMN Number P±94±1744 Determination of Polyhalogenated CFR citation: 40 CFR 721.4494. Dibenzo-para-Dioxins and Chemical name: (generic) Substituted PMN Number P±94±1557 Dibenzofurans in PMN Substances, benzotriazole. Selected Waste Streams, and Simulated Chemical name: (generic) Hydrated CAS number: Not available. Effective date of section 5(e) consent Incinerator Emissions’’) would help alkaline earth metal salts of metalloid order: February 3, 1995. oxyanions. characterize the potential for dioxin and Basis for section 5(e) consent order: The furan formation through incineration of CAS number: Not available. Effective date of section 5(e) consent order was issued under section 5 polymer matrices containing the PMN (e)(1)(A)(i) and (e)(1)(A)(ii)(I) of TSCA substance. EPA feels a 90-day order: May 12, 1995. Basis for section 5(e) consent order: The based on a finding that this substance subchronic toxicity study (40 CFR may present an unreasonable risk of 798.2650) would help EPA characterize order was issued under section 5 (e)(1)(A)(i), (e)(1)(A)(ii)(I), and injury to human health. the human health effects of the PMN Toxicity concern: Similar substances (e)(1)(A)(ii)(II) of TSCA based on a substance. The PMN submitter has have been shown to cause systemic finding that this substance may present agreed not to exceed the first production effects and reproductive toxicity in test an unreasonable risk of injury to human volume limit without performing the animals. dioxin/furan contamination study. The health, is expected to be produced in Recommended testing: 90-day oral PMN submitter has also agreed not to substantial quantities, and may (gavage) subchronic study (as described exceed the second and third higher reasonably be expected to enter the in 40 CFR 798.2650). The PMN production volume limits without environment in substantial quantities. submitter has agreed not to exceed the performing incineration simulation Toxicity concern: Similar chemicals production limit without performing testing and the 90-day subchronic have been shown to cause acute this test. toxicity study. toxicity, reproductive toxicity, CFR citation: 40 CFR 721.1738. CFR citation: 40 CFR 721.4484. developmental toxicity, kidney and liver effects, and spleen, blood and PMN Number P±94±1747 PMN Number P±94±437 adrenal toxicity in test animals. Chemical name: (generic) Halogenated Chemical name: (generic) Polycyclic Recommended testing: EPA has alkane aromatic compound. isocyanate. determined that a 90-day subchronic CAS number: Not available. CAS number: Not available. toxicity study (OPPTS 870.3100 test Effective date of section 5(e) consent Effective date of section 5(e) consent guidelines), developmental toxicity order: February 8, 1995. order: March 14, 1995. study (40 CFR 798.4900), an acute algal Basis for section 5(e) consent order: The Basis for section 5(e) consent order: The study (40 CFR 797.1050), and an order was issued under section 5 order was issued under section 5 activated sludge sorption isotherm (e)(1)(A)(i), (e)(1)(A)(ii)(I), and (e)(1)(A)(i) and (e)(1)(A)(ii)(I) of TSCA study (OPPTS 835.1110 test guideline) (e)(1)(A)(ii)(II) of TSCA based on based on a finding that this substance would help characterize the human findings that this substance may present may present an unreasonable risk of health and environmental effects of the an unreasonable risk of injury to health injury to human health and the substance. The PMN submitter has and the environment, and that the environment. agreed not to exceed a specified substance will be produced in Toxicity concern: Similar chemicals production volume limit without substantial quantities and there may be have been shown to cause pulmonary performing the acute algal and activated significant (or substantial) human sensitization and lung effects in test sludge adsorption isotherm studies. exposure to the substance. animals. The PMN substance itself has CFR citation: 40 CFR 721.4468. Toxicity concern: Similar substances been shown to cause dermal have been shown to cause cancer, sensitization in test animals. In PMN Numbers P±94±1634/1635/1636/ developmental toxicity, and addition, based on structure activity 1637/1638/1639 reproductive toxicity in test animals, relationship (SAR) predictions for Chemical name: Fatty acids, C(14-18)- and toxicity to fish. isocyanates, there is concern that the unsaturated, branched and linear, Recommended testing: Incineration substance may cause toxicity to aquatic methyl and butyl esters. testing (MRI guidelines, or comparable organisms at concentrations above 5 CAS number: Not available. EPA-approved protocol) to help ppb. Effective date of section 5(e) consent characterize health effects. The PMN Recommended testing: A 90-day order: September 28, 1994. submitter has agreed not to exceed the subchronic toxicity study conducted via Basis for section 5(e) consent order: The production limit without performing the inhalation route (rats) as described order was issued under section 5 this test. at 40 CFR 798.2450 and a pulmonary (e)(1)(A)(i) and (e)(1)(A)(ii)(II), of TSCA In addition, EPA has determined that sensitization study conducted either by based on findings that this substance is the following tests would be necessary Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63729 to evaluate possible aquatic toxicity: (1) CAS number: Not available. Recommended testing: EPA has fish bioconcentration test (OPPTS Basis for action: The PMN substances determined that a fish acute toxicity 850.1730 test guideline), (2) fish early will be used as preservatives. Based on study (40 CFR 797.1400), a daphnid life stage toxicity test (40 CFR analogy of the substances to acute toxicity study (40 CFR 797.1300), 797.1600), (3) algal acute toxicity test isothiazolones, EPA is concerned that and an algal acute toxicity study (40 (40 CFR 797.1050), (4) daphnid chronic toxicity to aquatic organisms may occur CFR 797.1050) would help characterize toxicity test (40 CFR 797.1330), (5) at a concentrations as low as 10 ppb of the environmental effects of the PMN oyster acute toxicity test (OPPTS the PMN substances in surface waters. substance. 850.1025 test guideline), (6) tadpole/ Based on analogy of the substances CFR citation: 40 CFR 721.4685. sediment subchronic test (OPPTS similar substances, EPA is concerned for PMN Number P±95±240 850.1800 test guideline), and (7) acute lethality, corrosion, chironamid sediment invertebrate test developmental toxicity, liver toxicity, Chemical name: (generic) Azo (OPPTS 850.1790 test guideline). The sensitization, and cancer to exposed chromium complex dyestuff above aquatic toxicity tests would be workers. EPA determined that use of the preparation. required on the likely photolysis substances as described in the PMN did CAS number: Not available. products or, in the absence of not present an unreasonable risk Basis for action: The PMN substance degradation, the parent PMN substance. because the substances would not be will be used as described in the PMN. The following information is required to released to surface waters above a Based on analogy to similar compounds, identify the test species to be used in concentration of 10 ppb and significant the PMN substance may cause cancer, the above aquatic tests before testing worker exposure would not occur neurotoxicity, and kidney toxicity. EPA commences: Laboratory determination because the substance was not has determined that persons exposed by of direct photolysis reaction quantum manufactured domestically. EPA has inhalation to the PMN substance may be yield in aqueous solution and sunlight determined that other uses of the at risk for cancer, neurotoxicity, and photolysis (OPPTS 835.2210 test substances may result in releases to kidney toxicity. EPA determined that guideline) and gas phase absorption surface waters which exceed the use of the substance as a liquid did not spectra and photolysis (OPPTS 835.2310 concern concentration and significant present an unreasonable risk because test guideline). worker exposure. Based on this there were no significant inhalation In addition, a 2-year rodent bioassay information the PMN substances meet exposures. EPA has determined that use (40 CFR 798.3300) would be necessary the concern criteria at § 721.170 of the substance in a solid or powder to evaluate the carcinogenic effects (b)(3)(ii) and (b)(4)(ii). form may result in significant inhalation which may be caused by the PMN Recommended testing: EPA has exposures. Based on this information substance, and a soil/sediment determined that a fish acute toxicity the PMN substance meets the concern adsorption (adsorption isotherm) test study (40 CFR 797.1400), a daphnid criteria at § 721.170 (b)(1)(i)(C) and (40 CFR 796.2750) would be required to acute toxicity study (40 CFR 797.1300), (b)(3)(ii). evaluate potential for leaching of the and an algal toxicity study (40 CFR Recommended testing: EPA has PMN substance from landfills to ground 797.1050) would help characterize the determined that a 2-year two-species water sources. environmental effects of the PMN oral bioassay (40 CFR 798.3300) and a CFR citation: 40 CFR 721.785. substance. EPA has determined that a 90-day subchronic oral study in rats (40 PMN Number P±94±2061 developmental toxicity study (40 CFR CFR 798.2650) would help characterize 798.4900) and a 90-day subchronic the health effects of the PMN substance. Chemical name: (generic) Benzotriazole study (40 CFR 797.2650) would help CFR citation: 40 CFR 721.2097. derivative. characterize the health effects of the PMN Number P±95±241 CAS number: Not available. PMN substance. Effective date of section 5(e) consent CFR citation: 40 CFR 721.4525. Chemical name: (generic) order: February 8, 1995. Perfluoroalkylethyl acrylate copolymer. Basis for section 5(e) consent order: The PMN Number P±95±175 order was issued under section 5 CAS number: Not available. (e)(1)(A)(i) and (e)(1)(A)(ii)(I) of TSCA Chemical name: (generic) Substituted Basis for action: The PMN substance based on a finding that this substance purine metal salt. will be used as a water and oil repellent. may present an unreasonable risk of CAS number: Not available. Based on analogy to perfluoro injury to human health. Basis for action: The PMN substance compounds, the PMN substance may Toxicity concern: Similar chemicals will be used as a contained-use cause lung toxicity. EPA has determined have been shown to cause systemic component of a manufactured consumer that persons exposed by inhalation to toxicity (organ effects, immunotoxicity, article. Based on analogy to purines and the PMN substance may be at risk for blood effects) and reproductive toxicity similar chemicals, EPA is concerned lung toxicity. EPA determined that use in test animals. Neurotoxicity was that toxicity to aquatic organisms may of the substance as described in the indicated by acute studies on this occur at concentrations as low as 8 ppb PMN did not present an unreasonable chemical substance. of the PMN substance in surface waters. risk because there were no significant Recommended testing: A 90-day gavage EPA determined that use of the inhalation exposures. EPA has study in rats (40 CFR 798.2650). The substance did not present an determined that use of the substance in PMN submitter has agreed not to exceed unreasonable risk because because the an application that generates a vapor, the production volume limit without substance was not released to surface mist, or aerosol may result in significant performing this test. waters above 8 ppb. EPA has inhalation exposures. Based on this CFR citation: 40 CFR 721.1737. determined that releases to surface information the PMN substance meets water above 8 ppb of the substance may the concern criteria at PMN Numbers P±95±116/96±1250 and result in significant environmental § 721.170(b)(3)(ii). P±96±117/96±1251 exposure. Based on this information the Recommended testing: EPA has Chemical name: (generic) PMN substance meets the concern determined that a 90-day subchronic Isothiazolinone derivatives. criteria at § 721.170(b)(4)(ii). inhalation study in rats (40 CFR 63730 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

798.2650) would help characterize the hydroxyalkyloxoalkyl substituted dinitrophenyl)azo]diallylamino-4- health effects of the PMN substance. pyridines. substituted phenyl] acetamide. CFR citation: 40 CFR 721.336. CAS number: Not available. CAS number: Not available. Basis for action: The PMN substances Basis for action: The PMN substance PMN Number P±95±274 will be used as textile dyes. Based on will be used a colorant. Based on Chemical name: (generic) analogy to similar substances and analogy to similar substances, EPA is Phenylenebis[imino(chlorotriazinyl) submitted toxicity data, EPA is concerned that liver toxicity, blood imino(substituted concerned that liver toxicity, kidney toxicity, oncogenicity, neurotoxicity, naphthyl)azo(substituted phenyl) azo, toxicity, cancer, and reproductive and developmental toxicity will occur sodium salt. toxicity will occur in exposed workers. in exposed workers. EPA determined CAS number: Not available. EPA determined that use of the that use of the substance did not present Basis for action: The PMN substance substances did not present an an unreasonable risk because significant will be used as a textile dye. Based on unreasonable risk because significant worker exposure would not occur analogy to similar substances, EPA is worker exposure would not occur because the substance was not concerned that respiratory sensitization because the substances were not manufactured domestically. EPA has will occur in exposed workers. EPA manufactured domestically. EPA has determined that domestic manufacture determined that use of the substance did determined that domestic manufacture of the substance may result in not present an unreasonable risk of the substances may result in significant worker exposure. Based on because significant worker exposure significant worker exposure. Based on this information the PMN substance would not occur since the substance this information the PMN substance meets the concern criteria at § 721.170 was not manufactured domestically. meets the concern criteria at § 721.170 (b)(1)(i)(C), (b)(3)(ii), and (b)(3)(iii). EPA has determined that domestic (b)(1)(i)(B), (b)(1)(i)(C), (b)(3)(i), and Recommended testing: EPA has manufacture of the substance may result (b)(3)(ii). determined that a 2-year two-species in significant worker exposure. Based Recommended testing: EPA has oral bioassay (40 CFR 798.3300), a on this information the PMN substance determined that a 2-year two-species developmental toxicity test (40 CFR meets the concern criteria at oral bioassay (40 CFR 798.3300), a two- 798.4900) and a 90-day subchronic oral § 721.170(b)(3)(ii). generation reproduction study (40 CFR Recommended testing: EPA has study in rats (40 CFR 798.2650) would 798.4700), and a 90-day subchronic oral determined that a respiratory help characterize the health effects of sensitization study (Fundamental and study in rats (40 CFR 798.2650) would the PMN substance. CFR citation: 40 CFR 721.267. Applied Toxicology 18:107–114) would help characterize the health effects of help characterize the health effects of the PMN substance. PMN Number P±95±514 CFR citation: 40 CFR 721.8673. the PMN substance. Chemical name: (generic) Substituted CFR citation: 40 CFR 721.5930. PMN Number P±95±512 diphenylazo dye. PMN Number P±95±284 Chemical name: (generic) Aminofluoran CAS number: Not available. Chemical name: (generic) Phosphoric derivative. Basis for action: The PMN substances acid derivative. CAS number: Not available. will be used as a dye. Based on analogy CAS number: Not available. Basis for action: The PMN substance to similar substances, EPA is concerned Basis for action: The PMN substance will be used as a color former for that liver toxicity, blood toxicity, will be used as an intermediate. Based carbonless copy paper. Based on oncogenicity, neurotoxicity, and on analogy to aliphatic amines, EPA is analogy to neutral organic chemicals, developmental toxicity will occur in concerned that toxicity to aquatic EPA is concerned that toxicity to exposed workers. EPA determined that organisms may occur at a concentration aquatic organisms may occur at use of the substances did not present an as low as 1 ppb of the PMN substance concentrations as low as 1 ppb of the unreasonable risk because significant in surface waters. EPA determined that PMN substance in surface waters. EPA worker exposure would not occur use of the substance as described in the determined that use of the substance did because the substances were not PMN did not present an unreasonable not present an unreasonable risk manufactured domestically. EPA has risk because the substance would not be because significant environmental determined that domestic manufacture released to surface waters. EPA has exposure would not occur since the of the substances may result in determined that other uses of the substance was not manufactured significant worker exposure. Based on substance may result in releases to domestically. EPA has determined that this information the PMN substance surface waters which exceed the domestic manufacture of the substance meets the concern criteria at § 721.170 concern concentration. Based on this may result in significant environmental (b)(1)(i)(C), (b)(3)(ii), and (b)(3)(iii). information, the PMN substance meets exposure. Based on this information the Recommended testing: EPA has the concern criteria at PMN substance meets the concern determined that a 2-year two-species § 721.170(b)(4)(ii). criteria at § 721.170(b)(4)(ii). oral bioassay (40 CFR 798.3300), a Recommended testing: EPA has Recommended testing: EPA has developmental toxicity test (40 CFR determined that a fish acute toxicity determined that a chronic 60-day fish 798.4900) and a 90-day subchronic oral study (40 CFR 797.1400), a daphnid early life stage toxicity test in rainbow study in rats (40 CFR 798.2650) would acute toxicity study (40 CFR 797.1300) trout (40 CFR 797.1600) and a 21-day help characterize the health effects of and an algal acute toxicity study (40 chronic daphnid toxicity test (40 CFR the PMN substance. CFR 797.1050) would help characterize 797.1330) would help characterize the CFR citation: 40 CFR 721.2527. environmental effects of the PMN the environmental effects of the PMN PMN Number P±95±529 substance. substance. CFR citation: 40 CFR 721.6097. CFR citation: 40 CFR 721.646. Chemical name: (generic) Alkaline titania silica gel. PMN Numbers P±95±510/511 PMN Number P±95±513 CAS number: Not available. Chemical name: (generic) Chemical name: (generic) N-[2- Basis for action: The PMN substance [(Disubstituted phenyl)]azodihydro [(substituted will be used as an intermediate. Based Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63731 on potential silicosis, EPA is concerned toxicity, oncogenicity, kidney toxicity, Basis for action: The PMN substance that lung effects will in workers exposed and sensitization will occur in exposed will be used as described in the PMN. via inhalation. EPA determined that use workers. EPA determined that use of the Based on analogy of the PMN substance of the substance as described in the substances did not present an to alkoxysilanes EPA expects irritation PMN does not present an unreasonable unreasonable risk because the to mucous membranes and lung risk; significant worker inhalation substances would not be manufactured toxicity. EPA determined that use of the exposure is not expected because the as a powder and significant worker substance as described in the PMN did substance will not be manufactured, exposure would not occur. EPA has not present an unreasonable risk processed, or used as a powder. EPA has determined that manufacture of the because there were no significant determined that manufacture, substances as a powder may result in inhalation exposures. EPA has processing, and use of the substance as significant worker exposure. Based on determined that industrial uses of the a powder may result in significant this information the PMN substances substance may result in significant worker inhalation exposure. Based on meet the concern criteria at § 721.170 inhalation exposures. Based on this this information, the PMN substance (b)(1)(i)(C), (b)(3)(ii), and (b)(3)(iii). information the PMN substance meets meets the concern criteria at Recommended testing: EPA has the concern criteria at § 721.170(b)(3)(ii). determined that a 2-year two-species § 721.170(b)(3)(ii). Recommended testing: EPA has oral bioassay (40 CFR 798.3300) and a Recommended testing: EPA has determined that a 90-day subchronic 90-day subchronic oral study in rats (40 determined that a 90-day subchronic inhalation study (40 CFR 798.2650) with CFR 798.2650) would help characterize inhalation assay (40 CFR 798.2450) a 60-day holding period would help the health effects of the PMN substance. would help characterize the health characterize the human health effects of CFR citation: 40 CFR 721.3063. effects of the PMN substance. the PMN substance. CFR citation: 40 CFR 721.9507. CFR citation: 40 CFR 721.9680. PMN Numbers P±95±979/980/981 PMN Numbers P±95±1024/1040 PMN Number P±95±538 Chemical name: Fluorinated carboxylic acid alkali metal salts. Chemical name: (generic) Acrylosilane Chemical name: 2-Naphthalenol, CAS number: Not available. resins. CAS number: Not available. heptyl-1-[[(4-phenylazo)phenyl] azo]-, Basis for action: The PMN substances Basis for action: The PMN substances ar’,ar’’-Me derivs. will be used as intermediates. Based on CAS number: Not available. will be used as described in the PMN. analogy of the PMN substances to Basis for action: The PMN substance Based on analogy of the PMN anionic surfactants and perfluorinated will be used as a colorant in high sulfur substances to alkoxysilanes, EPA fatty acids, EPA expects toxicity to diesel fuel. Based on data on the expects irritation to mucous membranes aquatic organisms at surface water potential diaminoazo reduction product and lung toxicity. EPA determined that concentrations as low as 100 ppb for P– and by analogy to similar chemicals, use of the substances as described in the 95–979, 30 ppb for P–95–980, and 3 ppb EPA is concerned that reproductive PMN did not present an unreasonable for P–95–981. EPA expects liver toxicity effects and cancer will occur in workers risk because there were no significant based on analogy to a structurally exposed via inhalation. EPA determined inhalation exposures. EPA has similar substance, developmental that use of the substance as described in determined that nonindustrial uses of toxicity based on branched carboxylic the PMN does not present an the substances may result in significant acids, and lung toxicity due to unreasonable risk; significant worker inhalation exposures. Based on this surfactancy. EPA determined that use of inhalation exposure is not expected information the PMN substances meet the substances as described in the PMN because the substance will not be the concern criteria at did not present an unreasonable risk manufactured, processed, or used as a § 721.170(b)(3)(ii). because there were no significant powder. EPA has determined that Recommended testing: EPA has inhalation exposures or environmental manufacture, processing, and use of the determined that a 90-day subchronic releases. EPA has determined that other substance as a powder may result in inhalation assay (40 CFR 798.2450) uses of the substances may result in significant worker inhalation exposure. would help characterize the health significant inhalation or environmental Based on this information the PMN effects of the PMN substances. exposures. Based on this information substance meets the concern criteria at CFR citation: 40 CFR 721.9495. the PMN substances meet the concern § 721.170 (b)(1)(i)(C) and (b)(3)(ii). PMN Number P±95±1030 Recommended testing: EPA has criteria at § 721.170 (b)(3)(ii) and determined that a 2-year two-species (b)(4)(iii). Chemical name: (generic) o-Xylene oral bioassay (40 CFR 798.3300) and a Recommended testing: EPA has compound. two-generation reproductive toxicity determined that a 90-day subchronic CAS number: Not available. study (40 CFR 798.4700) would help inhalation assay (40 CFR 798.2450) Basis for action: The PMN substance characterize the human health effects of would help characterize the health will be used as described in the PMN. the PMN substance. effects of the PMN substances and a fish Based on toxicity data submitted with CFR citation: 40 CFR 721.5276. acute toxicity study (40 CFR 797.1400), the PMN, EPA identified health a daphnid acute toxicity study (40 CFR concerns for liver, kidney, thyroid, and PMN Numbers P±95±655, P±95±782, 797.1300) and an algal acute toxicity developmental toxicity and chronic and P±95±871 study (40 CFR 797.1050) would help toxicity to aquatic organisms. EPA Chemical name: (generic) Substituted characterize the environmental effects of determined that use of the substance as phenyl azo substituted phenyl esters. the PMN substances. described in the PMN did not present an CAS number: Not available. CFR citation: 40 CFR 721.4663. unreasonable risk because significant Basis for action: The PMN substances human or environmental exposure PMN Number P±95±1022 will be used as textile dyes. Based on would not occur. EPA has determined analogy to similar substances and Chemical name: (generic) Polyester that use of the substance other than as submitted toxicity data, EPA is silane. described in the PMN may result in concerned that liver toxicity, blood CAS number: Not available. significant human or environmental 63732 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations exposure. Based on this information the the concern criteria at § 721.170 substance for a significant new use PMN substance meets the concern (b)(1)(i)(D) and (b)(3)(iii). before that activity begins. criteria at § 721.170 (b)(3)(i) and Recommended testing: EPA has (2) EPA will have an opportunity to (b)(4)(i). determined that a 2-year two-species review and evaluate data submitted in a Recommended testing: EPA has oral bioassay (40 CFR 798.3300), a SNUR notice before the notice submitter determined that a 28-day contaminated developmental toxicity study (40 CFR begins manufacturing, importing, or sediment test with chironomids and 798.4900), and a 90-day subchronic oral processing a listed chemical substance natural sediments would help study in rats (40 CFR 798.2650) would for a significant new use. characterize the environmental effects of help characterize the health effects of (3) When necessary to prevent the PMN substance. the PMN substance. unreasonable risks EPA will be able to CFR citation: 40 CFR 721.9970. CFR citation: 40 CFR 721.2095. regulate prospective manufacturers, importers, or processors of a listed PMN Number P±96±175 PMN Number P±95±1208 chemical substance before a significant Chemical name: (generic) Fluorinated Chemical name: Lithium Manganese new use of that substance occurs. acrylic copolymer. Oxide (LiMn204) (4) All manufacturers, importers, and CAS number: Not available. CAS number: Not applicable. processors of the same chemical Effective date of section 5(e) consent Basis for action: The PMN substance substance which is subject to a section order: April 17, 1996. will be used as a soil repellant. Based 5(e) order are subject to similar Basis for section 5(e) consent order: The on the molecular weight and physical requirements. order was issued under section 5 properties of the substance, EPA is Issuance of a SNUR for a chemical (e)(1)(A)(i), (e)(1)(A)(ii)(I), and concerned that a significant risk of lung substance does not signify that the (e)(1)(A)(ii)(II), of TSCA based on toxicity would occur. EPA determined substance is listed on the TSCA findings that this substance is expected that use of the substance did not present Inventory. Manufacturers, importers, to be produced in substantial quantities an unreasonable risk because the and processors are responsible for and there may be significant or substance would not be manufactured, ensuring that a new chemical substance substantial human exposure to the processed, or used as a powder or an subject to a final SNUR is listed on the substances. TSCA Inventory. aerosol and significant worker Recommended testing: EPA has inhalation exposure would not occur. determined that a sediment and soil V. Direct Final Procedures EPA has determined that manufacture, adsorption isotherm test (40 CFR EPA is issuing these SNURs as direct processing, or use of the substance as a 796.2750) and a 90-day subchronic final rules, as described in 40 CFR powder or an aerosol may result in study via the inhalation route with a 60- 721.160(c)(3) and 721.170(d)(4). In significant worker inhalation exposure. day holding period (40 CFR 798.2450). accordance with 40 CFR Based on this information the PMN The PMN submitter has agreed not to 721.160(c)(3)(ii), this rule will be substance meets the concern criteria at exceed the production volume limit effective January 31, 1997, unless EPA § 721.170(b)(3)(ii). without performing these tests. receives a written notice by January 2, Recommended testing: EPA has CFR citation: 40 CFR 721.4587. 1997 that someone wishes to make determined that a 90-day subchronic adverse or critical comments on EPA’s IV. Objectives and Rationale of the Rule inhalation study in rats (40 CFR action. If EPA receives such a notice, 798.2450) would help characterize the During review of the PMNs submitted EPA will publish a notice to withdraw health effects of the PMN substance. for the chemical substances that are the direct final SNUR for the specific CFR citation: 40 CFR 721.484. subject to this SNUR, EPA concluded substance to which the adverse or PMN Number P±95±1242 that for 19 of the 45 substances critical comments apply. EPA will then regulation was warranted under section propose a SNUR for the specific Chemical name: (generic) Chromate(3-), 5(e) of TSCA, pending the development substance providing a 30-day comment bis 2-[[substituted-3-[(5sulfo-1- of information sufficient to make period. naphthalenyl) reasoned evaluations of the health or This action establishes SNURs for a azo]phenyl]azo]substituted monocycle, environmental effects of the substances. number of chemical substances. Any trisodium. The basis for such findings is outlined person who submits a notice of intent to CAS number: Not available. in Unit III of this preamble. Based on submit adverse or critical comments Basis for action: The PMN substance these findings, section 5(e) consent must identify the substance and the new will be used as a leather dye. Based on orders requiring the use of appropriate use to which it applies. EPA will not potential azo reduction products, EPA is controls were negotiated with the PMN withdraw a SNUR for a substance not concerned that blood toxicity, submitters; the SNUR provisions for identified in a notice. oncogenicity, mutagenicity, these substances designated herein are neurotoxicity, and developmental consistent with the provisions of the VI. Test Data and Other Information toxicity will occur in exposed workers. section 5(e) orders. EPA recognizes that section 5 of EPA determined that use of the In the other 26 cases for which the TSCA does not require developing any substance did not present an proposed uses are not regulated under a particular test data before submission of unreasonable risk because significant section 5(e) order, EPA determined that a SNUN. Persons are required only to worker exposure would not occur one or more of the criteria of concern submit test data in their possession or because the substance was not established at 40 CFR 721.170 were met. control and to describe any other data manufactured domestically or in the EPA is issuing this SNUR for specific known to or reasonably ascertainable by form of a powder. EPA has determined chemical substances which have them. In cases where a section 5(e) order that domestic manufacture of the undergone premanufacture review to requires or recommends certain testing, substance or any use of the substance as ensure that: Unit III of this preamble lists those a powder may result in significant (1) EPA will receive notice of any recommended tests. worker exposure. Based on this company’s intent to manufacture, However, EPA has established information the PMN substance meets import, or process a listed chemical production limits in the section 5(e) Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63733 orders for several of the substances proposed use would be a significant Inventory, no other person may regulated under this rule, in view of the new use under this rule. Under the commence such activities without first lack of data on the potential health and procedure incorporated from submitting a PMN. For substances for environmental risks that may be posed § 721.1725(b)(1), a manufacturer or which an NOC has not been submitted by the significant new uses or increased importer must show that it has a bona at this time, EPA has concluded that the exposure to the substances. These fide intent to manufacture or import the uses are not ongoing. However, EPA production limits cannot be exceeded substance and must identify the specific recognizes in cases when chemical unless the PMN submitter first submits use for which it intends to manufacture substances identified in this SNUR are the results of toxicity tests that would or import the substance. If EPA added to the Inventory prior to the permit a reasoned evaluation of the concludes that the person has shown a effective date of the rule, the substances potential risks posed by these bona fide intent to manufacture or may be manufactured, imported, or substances. Under recent consent import the substance, EPA will tell the processed by other persons for a orders, each PMN submitter is required person whether the use identified in the significant new use as defined in this to submit each study at least 14 weeks bona fide submission would be a rule before the effective date of the rule. (earlier orders required submissions at significant new use under the rule. However, 39 of the 45 substances least 12 weeks) before reaching the Since most of the chemical identities of contained in this rule have CBI specified production limit. Listings of the substances subject to these SNURs chemical identities, and since EPA has the tests specified in the section 5(e) are also CBI, manufacturers and received a limited number of post-PMN orders are included in Unit III of this processors can combine the bona fide bona fide submissions, the Agency preamble. The SNURs contain the same submission under the procedure in believes that it is highly unlikely that production volume limits as the consent § 721.1725(b)(1) with that under any of the significant new uses orders. Exceeding these production § 721.11 into a single step. described in the following regulatory limits is defined as a significant new If a manufacturer or importer is told text are ongoing. use. that the production volume identified in As discussed in the Federal Register The recommended studies may not be the bona fide submission would not be of April 24, 1990 (55 FR 17376) (FRL– the only means of addressing the a significant new use, i.e. it is below the 3658–5), EPA has decided that the potential risks of the substance. level that would be a significant new intent of section 5(a)(1)(B) is best served However, SNUNs submitted for use, that person can manufacture or by designating a use as a significant new significant new uses without any test import the substance as long as the use as of the date of publication rather data may increase the likelihood that aggregate amount does not exceed that than as of the effective date of the rule. EPA will take action under section 5(e), identified in the bona fide submission to Thus, persons who begin commercial particularly if satisfactory test results EPA. If the person later intends to manufacture, import, or processing of have not been obtained from a prior exceed that volume, a new bona fide the substances regulated through this submitter. EPA recommends that submission would be necessary to SNUR will have to cease any such potential SNUN submitters contact EPA determine whether that higher volume activity before the effective date of this early enough so that they will be able would be a significant new use. EPA is rule. To resume their activities, these to conduct the appropriate tests. considering whether to adopt a special persons would have to comply with all SNUN submitters should be aware procedure for use when CBI production applicable SNUR notice requirements that EPA will be better able to evaluate volume is designated as a significant and wait until the notice review period, SNUNs which provide detailed new use. Under such a procedure, a including all extensions, expires. information on: person showing a bona fide intent to EPA has promulgated provisions to (1) Human exposure and manufacture or import the substance, allow persons to comply with this environmental release that may result under the procedure described in SNUR before the effective date. If a from the significant new use of the § 721.11, would automatically be person were to meet the conditions of chemical substances. informed of the production volume that advance compliance under § 721.45(h), (2) Potential benefits of the would be a significant new use. Thus the person would be considered to have substances. the person would not have to make met the requirements of the final SNUR (3) Information on risks posed by the multiple bona fide submissions to EPA for those activities. If persons who begin substances compared to risks posed by for the same substance to remain in commercial manufacture, import, or potential substitutes. compliance with the SNUR, as could be processing of the substance between the case under the procedures in publication and the effective date of the VII. Procedural Determinations § 721.1725(b)(1). SNUR do not meet the conditions of EPA is establishing through this rule advance compliance, they must cease VIII. Applicability of Rule to Uses some significant new uses which have that activity before the effective date of Occurring Before Effective Date of the been claimed as CBI. EPA is required to the rule. To resume their activities, Final Rule keep this information confidential to these persons would have to comply protect the CBI of the original PMN To establish a significant ‘‘new’’ use, with all applicable SNUR notice submitter. EPA promulgated a EPA must determine that the use is not requirements and wait until the notice procedure to deal with the situation ongoing. The chemical substances review period, including all extensions, where a specific significant new use is subject to this rule have recently expires. CBI. This procedure appears in 40 CFR undergone premanufacture review. 721.1725(b)(1) and is similar to that in Section 5(e) orders have been issued for IX. Economic Analysis § 721.11 for situations where the 19 substances and notice submitters are EPA has evaluated the potential costs chemical identity of the substance prohibited by the section 5(e) orders of establishing significant new use subject to a SNUR is CBI. This from undertaking activities which EPA notice requirements for potential procedure is cross-referenced in each of is designating as significant new uses. In manufacturers, importers, and these SNURs. cases where EPA has not received a processors of the chemical substance A manufacturer or importer may notice of commencement (NOC) and the subject to this rule. EPA’s complete request EPA to determine whether a substance has not been added to the economic analysis is available in the 63734 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations public record for this rule (OPPTS– EPA has determined that this action Authority: 15 U.S.C. 2604, 2607, and 50623). does not impose any adverse economic 2625(c). impacts on a substantial number of X. Rulemaking Record 2. By adding new § 721.267 to subpart small entities. Pursuant section 605(b) E to read as follows: A record has been established for this of the Regulatory Flexibility Act (5 rulemaking under docket number U.S.C. 601 et seq.). The Agency has § 721.267 N-[2-[(substituted OPPTS–50623 (including comments and certified that this action will not impose dinitrophenyl)azo]diallylamino-4- data submitted electronically as a significant economic impact on a substituted phenyl] acetamide (generic described below). A public version of substantial number of small entities. name). this record, including printed, paper Information relating to this (a) Chemical substance and versions of electronic comments, which determination is included in the docket significant new uses subject to reporting. does not include any information for this rulemaking. Any comments (1) The chemical substance identified claimed as CBI is available for regarding the economic impacts that generically as N-[2-[(substituted inspection from 12 noon to 4 p.m., this action imposes on small entities dinitrophenyl)azo]diallylamino-4- Monday through Friday, except legal should be submitted to the Agency at substituted phenyl] acetamide (PMN P– holidays. The public record is located in the address listed above. 95–513) is subject to reporting under the TSCA Nonconfidential Information In accordance with the Paperwork this section for the significant new uses Center Rm. NE–B607, 401 M St., SW., Reduction Act, 44 U.S.C. 3501 et seq., described in paragraph (a)(2) of this Washington, DC 20460. an agency may not conduct or sponsor, section. Electronic comments can be sent and a person is not required to respond (2) The significant new uses are: (i) Industrial, commercial, and directly to EPA at: to, an information collection request consumer activities. Requirements as [email protected] unless it displays a currently valid control number assigned by OMB. The specified in § 721.80(f). Electronic comments must be (ii) [Reserved] submitted as an ASCII file avoiding the OMB control numbers for EPA’s regulations are listed in 40 CFR part 9 (b) Specific requirements. The use of special characters and any form provisions of subpart A of this part of encryption. and 48 CFR chapter 15. The information collection requirements related to this apply to this section except as modified The official record for this action have already been approved by by this paragraph. rulemaking, as well as the public OMB under OMB control number 2070– (1) Recordkeeping. Recordkeeping version, as described above will be kept 0012 (EPA ICR No. 574). This action requirements as specified in § 721.125 in paper form. Accordingly, EPA will does not impose any burdens requiring (a), (b), (c), and (i) are applicable to transfer all comments received additional OMB approval. The public manufacturers, importers, and electronically into printed, paper form reporting burden for this collection of processors of this substance. as they are received and will place the information is estimated to average 100 (2) Limitations or revocation of paper copies in the official rulemaking hours per response. The burden certain notification requirements. The record which will also include all estimate includes the time needed for provisions of § 721.185 apply to this comments submitted directly in writing. reviewing instructions, searching section. The official rulemaking record is the existing data sources, gathering and 3. By adding new § 721.336 to subpart paper record maintained at the address maintaining the data needed, and E to read as follows: in ‘‘ADDRESSES’’ at the beginning of completing and reviewing the collection this document. § 721.336 Perfluoroalkylethyl acrylate of information. copolymer (generic name). XI. Regulatory Assessment XII. Submission to Congress and the (a) Chemical substance and Requirements General Accounting Office significant new uses subject to reporting. (1) The chemical substance identified Under Executive Order 12866 (58 FR This action is not a ‘‘major rule’’ as 51735, October 4, 1993), this action is generically as a perfluoroalkylethyl defined by 5 U.S.C. 804(2) of the acrylate copolymer (PMN P–94–241) is not a ‘‘significant regulatory action’’ Administrative Procedure Act. Pursuant subject to review by the Office of subject to reporting under this section to 5 U.S.C. 801(a)(1)(A), EPA submitted for the significant new uses described in Management and Budget (OMB). In this action to the U.S. Senate, the U.S. addition, this action does not require paragraph (a)(2) of this section. House of Representatives and the (2) The significant new uses are: prior consultation with State officials as Comptroller General of the General (i) Industrial, commercial and specified by Executive Order 12875 (58 Accounting Office prior to its consumer activities. Requirements as FR 58093, October 28, 1993), nor does publication in today’s Federal Register. specified in § 721.80(y)(1). it involve special considerations of List of Subjects in 40 CFR Part 721 (ii) [Reserved] environmental justice related issues as (b) Specific requirements. The required by Executive Order 12898 (59 Environmental protection, Chemicals, provisions of subpart A of this part FR 7629, February 16, 1994). Hazardous materials, Reporting and apply to this section except as modified This action will not result in the recordkeeping requirements. by this paragraph. annual expenditure of $100 million or Dated: November 21, 1996. (1) Recordkeeping. Recordkeeping more for State, local, and tribal Charles M. Auer, requirements as specified in § 721.125 governments, in the aggregate, or to the Director, Chemical Control Division, Office (a), (b), (c), and (i) are applicable to private sector, and is not a Federal of Pollution Prevention and Toxics. manufacturers, importers, and mandate, as defined by the Unfunded processors of this substance. Mandates Reform Act of 1995 Therefore, 40 CFR part 721 is (2) Limitations or revocation of (UMRA)(Pub. L. 104–4), nor does it amended as follows: certain notification requirements. The uniquely affect small govbernments in PART 721Ð[AMENDED] provisions of § 721.185 apply to this any way. As such, the requirements of section. sections 202, 203, and 205 of Title II of 1. The authority citation for part 721 4. By adding new § 721.484 to subpart the UMRA do not apply to this action. continues to read as follows: E to read as follows: Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63735

§ 721.484 Fluorinated acrylic copolymer aromatic compound (PMN P–94–1747) Material Safety Data Sheet (MSDS) as (generic name). is subject to reporting under this section described in § 721.72(c) within 90 days (a) Chemical substance and for the significant new uses described in from the time the employer becomes significant new uses subject to reporting. paragraph (a)(2) of this section. aware of the new information. If these (1) The chemical substance identified (2) The significant new uses are: substances are not being manufactured, generically as a fluorinated acrylic (i) Protection in the workplace. imported, processed, or used in the copolymer (PMN P–95–1208) is subject Requirements as specified in § 721.63 employer’s workplace, the employer to reporting under this section for the (a)(1), (a)(3), (a)(4), (a)(5)(iv), (a)(5)(v), must add the new information to an significant new uses described in (6)(i), (b) (concentration set at 0.1 MSDS before the substances are paragraph (a)(2) of this section. percent), and (c). reintroduced into the workplace. (2) The significant new uses are: (ii) Hazard communication program. (B) The employer must ensure that (i) Industrial, commercial, and Requirements as specified in § 721.72 persons who will receive, or who have consumer activities. Requirements as (a), (b), (c), (d), (e) (concentration set at received their substances from the specified in § 721.80 (v)(1), (w)(1), 0.1 percent), (g)(1)(vii), (g)(2)(iv), employer within 5 years from the date (x)(1), and (y)(1). (g)(2)(v), (g)(3)(ii), (g)(4)(iii), and (g)(5). the employer becomes aware of the new (ii) [Reserved] (iii) Industrial, commercial, and information described in paragraph (b) Specific requirements. The consumer activites. Requirements as (a)(2)(i)(A) of this section, are provided provisions of subpart A of this part specified in § 721.80(q). an MSDS as described in § 721.72(c) apply to this section except as modified (iv) Release to water. Requirements as containing the information required by this paragraph. specified in § 721.90 (a)(1), (b)(1), and under paragraph (a)(2)(i)(A) of this (1) Recordkeeping. Recordkeeping (c)(1). section within 90 days from the time the requirements as specified in § 721.125 (b) Specific requirements. The employer becomes aware of the new (a), (b), (c), and (i) are applicable to provisions of subpart A of this part information. manufacturers, importers, and apply to this section except as modified (ii) Industrial, commercial, and processors of this substance. by this paragraph. consumer activities. Requirements as (2) Limitations or revocation of (1) Recordkeeping. Recordkeeping specified in § 721.80(q). certain notification requirements. The requirements as specified in § 721.125 (b) Specific requirements. The provisions of § 721.185 apply to this (a), (b), (c), (d), (e), (f), (g), (h), (i), and provisions of subpart A of this part section. (k) are applicable to manufacturers, apply to this section except as modified 5. By adding new § 721.646 to subpart importers, and processors of this by this paragraph. E to read as follows: substance. (1) Recordkeeping. Recordkeeping (2) Limitations or revocation of requirements as specified in § 721.125 § 721.646 Aminofluoran derivative (generic certain notification requirements. The (a), (h), and (i) are applicable to name). provisions of § 721.185 apply to this manufacturers, importers, and (a) Chemical substance and section. processors of these substances. significant new uses subject to reporting. (3) Determining whether a specific use (2) Limitations or revocation of (1) The chemical substance identified is subject to this section. The provisions certain notification requirements. The generically as aminofluoran derivative of § 721.1725(b)(1) apply to this section. provisions of § 721.185 apply to this (PMN P–95–512) is subject to reporting 7. By adding new § 721.979 to subpart section. under this section for the significant E to read as follows: (3) Determining whether a specific use new uses described in paragraph (a)(2) is subject to this section. The provisions of this section. § 721.979 l-Aspartic acid, homopolymer of § 721.1725(b)(1) apply to this section. and ammonium and potassium salts. (2) The significant new uses are: 8. By adding new § 721.1737 to (i) Industrial, commercial, and (a) Chemical substance and subpart E to read as follows: consumer activities. Requirements as significant new uses subject to reporting. specified in § 721.80(f). (1) The chemical substances l-Aspartic § 721.1737 Benzotriazole derivative. (ii) [Reserved] acid, homopolymer and ammonium and (a) Chemical substance and (b) Specific requirements. The potassium salts (P–91–1299 and P–95– significant new uses subject to reporting. provisions of subpart A of this part 1667, P–91–1298, and P–91–1297) (CAS (1) The chemical substance identified as apply to this section except as modified Nos. 25608–40–6 and 64723–18–8) are a benzotriazole derivative (PMN P–94– by this paragraph. subject to reporting under this section 2061) is subject to reporting under this (1) Recordkeeping. Recordkeeping for the significant new uses described in section for the significant new uses requirements as specified in § 721.125 paragraph (a)(2) of this section. described in paragraph (a)(2) of this (a), (b), (c), and (i) are applicable to (2) The significant new uses are: section. manufacturers, importers, and (i) Hazard communication program. A (2) The significant new uses are: processors of this substance. significant new use of these substance is (i) Protection in the workplace. (2) Limitations or revocation of any manner or method of manufacture, Requirements as specified in § 721.63 certain notification requirements. The import, or processing associated with (a)(4), and (b)(concentration set at 5.0 provisions of § 721.185 apply to this any use of these substances without percent) and (c). The following section. providing risk notification as follows: paragraphs apply during manufacturing 6. By adding new § 721.785 to subpart (A) If as a result of the test data and processing: (a)(5)(ii), (a)(5)(iv), and E to read as follows: required under the section 5(e) consent (a)(5)(v). The following paragraphs order for these substances, the employer apply during use: (a)(5)(iii), (a)(5)(viii), § 721.785 Halogenated alkane aromatic becomes aware that these substances (a)(5)(ix), (a)(5)(x), (a)(5)(xi), and compound (generic name). may present a risk of injury to human (a)(6)(ii). (a) Chemical substance and health or the environment the employer (ii) Hazard communication program. significant new uses subject to reporting. must incorporate this new information, Requirements as specified in § 721.72 (1) The chemical substance identified and any information on methods for (a), (b), (c), (d), (e)(concentration set at generically as a halogenated alkane protecting against such risk, into a 5.0 percent), (f), (g)(1)(vi), (g)(2)(ii), 63736 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

(g)(2)(iii), and (g)(2)(iv). The following provisions of § 721.185 apply to this (2) Limitations or revocation of additional statements shall appear on section. certain notification requirements. The each label and MSDS required by this (3) Determining whether a specific use provisions of § 721.185 apply to this paragraph: This substance may cause is subject to this section. The provisions section. kidney effects. This substance may of § 721.1725(b)(1) apply to this section. 12. By adding new § 721.2527 to cause liver effects. This substance may 10. By adding new § 721.2095 to subpart E to read as follows: cause neurotoxicity effects. This subpart E to read as follows: substance may cause blood effects. § 721.2527 Substituted diphenylazo dye § 721.2095 Chromate(3-), bis 2- (generic name). (iii) Industrial, commercial, and [[substituted-3-[(5-sulfo-1- consumer activities. Requirements as (a) Chemical substance and naphthalenyl)azo]phenyl]azo]substituted significant new uses subject to reporting. specified in § 721.80(q). monocycle, trisodium (generic name). (iv) Release to water. Requirements as (1) The chemical substance identified (a) Chemical substance and generically as a substituted diphenylazo specified in § 721.90 (a)(1) and (b)(1). significant new uses subject to reporting. (b) Specific requirements. The dye (PMN P–95–514) is subject to (1) The chemical substance identified reporting under this section for the provisions of subpart A of this part generically as chromate(3-), bis 2- apply to this section except as modified significant new uses described in [[substituted-3-[(5-sulfo-1-naphthalenyl) paragraph (a)(2) of this section. by this paragraph. azo]phenyl]azo]substituted monocycle, (1) Recordkeeping. Recordkeeping (2) The significant new uses are: trisodium (PMN P–95–1242) is subject (i) Industrial, commercial, and requirements as specified in § 721.125 to reporting under this section for the (a), (b), (c), (d), (f), (g), (h), (i), (j) and (k) consumer activities. Requirements as significant new uses described in specified in § 721.80(f). are applicable to manufacturers, paragraph (a)(2) of this section. importers, and processors of this (ii) [Reserved] (2) The significant new uses are: (b) Specific requirements. The substance. (i) Industrial, commercial, and provisions of subpart A of this part (2) Limitations or revocation of consumer activities. Requirements as apply to this section except as modified certain notification requirements. The specified in § 721.80 (f), (v)(1), (w)(1), provisions of § 721.185 apply to this by this paragraph. and (y)(1). (1) Recordkeeping. Recordkeeping section. (ii) [Reserved] (3) Determining whether a specific use (b) Specific requirements. The requirements as specified in § 721.125 is subject to this section. The provisions provisions of subpart A of this part (a), (b), (c), and (i) are applicable to of § 721.1725(b)(1) apply to this section. apply to this section except as modified manufacturers, importers, and 9. By adding new § 721.1738 to by this paragraph. processors of this substance. subpart E to read as follows: (1) Recordkeeping. Recordkeeping (2) Limitations or revocation of requirements as specified in § 721.125 certain notification requirements. The § 721.1738 Substituted benzotriazole provisions of § 721.185 apply to this (generic name). (a), (b), (c), and (i) are applicable to manufacturers, importers, and section. (a) Chemical substance and 13. By adding new § 721.3063 to significant new uses subject to reporting. processors of this substance. (2) Limitations or revocation of subpart E to read as follows: (1) The chemical substance identified certain notification requirements. The generically as a substituted § 721.3063 Substituted phenyl azo provisions of § 721.185 apply to this benzotriazole (PMN P–94–1744) is substituted phenyl esters (generic name). section. subject to reporting under this section (a) Chemical substance and 11. By adding new § 721.2097 to significant new uses subject to reporting. for the significant new uses described in subpart E to read as follows: paragraph (a)(2) of this section. (1) The chemical substances identified (2) The significant new uses are: § 721.2097 Azo chromium complex generically as substituted phenyl azo (i) Protection in the workplace. dyestuff preparation (generic name). substituted phenyl esters (PMNs P–95– Requirements as specified in § 721.63 (a) Chemical substance and 655, P–95–782 and P–95–871) are (a)(1), (a)(3), (a)(4), (a)(5)(ii), (a)(5)(iv), significant new uses subject to reporting. subject to reporting under this section (a)(6)(i), (b) (concentration set at 1.0%), (1) The chemical substance identified for the significant new uses described in and (c). generically as an azo chromium paragraph (a)(2) of this section. (ii) Hazard communication program. complex dyestuff preparation (PMN P– (2) The significant new uses are: Requirements as specified in § 721.72 95–240) is subject to reporting under (i) Industrial, commercial, and (a), (b), (c), (d), (e) (concentration set at this section for the significant new uses consumer activities. Requirements as 1.0%), (f), (g)(1)(iv), (g)(1)(vi), (g)(2)(i), described in paragraph (a)(2) of this specified in § 721.80(w)(1). (g)(2)(ii), (g)(2)(iii), (g)(2)(iv), (g)(2)(v), section. (ii) [Reserved] and (g)(5). (2) The significant new uses are: (b) Specific requirements. The (iii) Industrial, commercial, and (i) Industrial, commercial and provisions of subpart A of this part consumer activities. Requirements as consumer activities. Requirements as apply to this section except as modified specified in § 721.80(q). specified in § 721.80 (v)(1), (v)(2), by this paragraph. (b) Specific requirements. The (w)(1), (w)(2), (x)(1), and (x)(2). (1) Recordkeeping. Recordkeeping provisions of subpart A of this part (ii) [Reserved] requirements as specified in § 721.125 apply to this section except as modified (b) Specific requirements. The (a) and (i) are applicable to by this paragraph. provisions of subpart A of this part manufacturers, importers, and (1) Recordkeeping. Recordkeeping apply to this section except as modified processors of this substance. requirements specified in § 721.125(a) by this paragraph. (2) Limitations or revocation of through (i) are applicable to (1) Recordkeeping. Recordkeeping certain notification requirements. The manufacturers, importers, and requirements as specified in § 721.125 provisions of § 721.185 apply to this processors of this substance. (a), (b), (c), and (i) are applicable to significant new use rule. (2) Limitations or revocation of manufacturers, importers, and 14. By adding new § 721.3628 to certain notification requirements. The processors of this substance. subpart E to read as follows: Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63737

§ 721.3628 Fatty acids, C(14-18)- (3) Determining whether a specific use (a)(6)(vi), (b) (concentration set at 1.0%), unsaturated, branched and linear, methyl is subject to this section. The provisions and (c). and butyl esters. of § 721.1725(b)(1) apply to this section. (ii) Hazard communication program. (a) Chemical substance and 15. By adding new § 721.4484 to Requirements as specified in § 721.72 significant new uses subject to reporting. subpart E to read as follows: (a), (b), (c), (d), (e) (concentration set at (1) The chemical substances fatty acids, 1.0 percent), (f), (g)(1)(i), (g)(1)(ii), § 721.4484 Halogenated indane (generic (g)(2)(i), (g)(2)(ii), (g)(2)(iii), (g)(2)(iv), C(14-18) unsaturated, branched and name). linear, methyl and butyl esters (P–94– (g)(2)(v), (g)(3)(i), (g)(3)(ii), (g)(4)(i), and 1634/35/36/37/38/39) are subject to (a) Chemical substance and (g)(5). In addition the following human reporting under this section for the significant new uses subject to reporting. health and environmental hazard and significant new uses described in (1) The chemical substance identified precautionary statements shall appear paragraph (a)(2) of this section. generically as a halogenated indane on each label as specified in paragraph (PMN P–94–351) is subject to reporting (2) The significant new uses are: (b) of this section and the MSDS as under this section for the significant specified in paragraph (c) of this (i) Hazard communication program. A new uses described in paragraph (a)(2) significant new use of this substance is section: This substance may cause skin of this section. The requirements of this sensitization. This substance may cause any manner or method of manufacture, section do not apply to P–94–351 after import, or processing associated with pulmonary sensitization. incorporation into a plastic, resin (iii) Industrial, commercial, and any use of this substance without matrix, or pelletized so humans are not consumer activities. Requirements as providing risk notification as follows: reasonally likely to be exposed. specified in § 721.80(q). (A) If as a result of the test data (2) The significant new uses are: (iv) Release to water. Requirements as required under the section 5(e) consent (i) Protection in the workplace. specified in § 721.90 (a)(3), (b)(3), and order for this substance, the employer Requirements during manufacture as (c)(3). becomes aware that this substance may specified in § 721.72 (a)(5)(iii), (a)(5)(iv), (b) Specific requirements. The present a risk of injury to human health (a)(5)(v), (a)(5)(vi), (a)(5(vii), (a)(6)(i), (b) provisions of subpart A of this part or the environment the employer must (concentration set at 0.1 percent), and apply to this section except as modified incorporate this new information, and (c). by this paragraph. any information on methods for (ii) Hazard communication program. (1) Recordkeeping. Recordkeeping protecting against such risk, into a Requirements during manufacture as requirements as specified in § 721.125 Material Safety Data Sheet (MSDS) as specified in § 721.63 (a), (b), (c), (d), (e), (a) through (i) and (k) are applicable to described in § 721.72(c) within 90 days (f), (g)(1)(vii), (g)(2)(ii), (g)(2)(iii), manufacturers, importers, and from the time the employer becomes (g)(2)(iv), and (g)(5). processors of this substance. aware of the new information. If this (iii) Industrial, commercial, and (2) Limitations or revocation of substance is not being manufactured, consumer activities. Requirements as certain notification requirements. The imported, processed, or used in the specified in § 721.80(q). provisions of § 721.185 apply to this employer’s workplace, the employer (b) Specific requirements. The section. must add the new information to an provisions of subpart A of this part (3) Determining whether a specific use MSDS before the substance is apply to this section except as modified is subject to this section. The provisions reintroduced into the workplace. by this paragraph. of § 721.1725(b)(1) apply to this section. (B) The employer must ensure that (1) Recordkeeping. Recordkeeping 17. By adding new § 721.4497 to persons who will receive, or who have requirements as specified in § 721.125 subpart E to read as follows: received this substance from the (a), (b), (c), (d), (e), (f), (g), (h), and (i) employer within 5 years from the date are applicable to manufacturers, § 721.4497 Aliphatic polyisocyanates (generic name). the employer becomes aware of the new importers, and processors of this information described in paragraph substance. (a) Chemical substance and (a)(2)(i)(A) of this section, are provided (2) Limitations or revocation of significant new uses subject to reporting. an MSDS as described in § 721.72(c) certain notification requirements. The (1) The chemical substances identified containing the information required provisions of § 721.185 apply to this generically as aliphatic polyisocyanates under paragraph (a)(2)(i)(A) of this section. (P–91–1210 and P–92–714) are subject section within 90 days from the time the (3) Determining whether a specific use to reporting under this section for the employer becomes aware of the new is subject to this section. The provisions significant new uses described in information. of § 721.1725(b)(1) apply to this section. paragraph (a)(2) of this section. Non- spray uses are exempt from the (ii) Industrial, commercial, and 16. By adding new § 721.4494 to provisions of this rule. consumer activities. Requirements as subpart E to read as follows: (2) The significant new uses are: specified in § 721.80(q). § 721.4494 Polycyclic isocyanate. (i) Protection in the workplace. (b) Specific requirements. The (a) Chemical substance and Requirements as specified in § 721.63 provisions of subpart A of this part significant new uses subject to reporting. (a)(1), (a)(2)(i), (a)(2)(iii), (a)(3), (a)(4), apply to this section except as modified (1) The chemical substance identified as (a)(5)(i), (a)(5)(ii), (a)(5)(iii), (a)(5)(viii), by this paragraph. a polycyclic isocyanate (PMN P–94– (a)(5)(ix), (a)(5)(x), (a)(5)(xi), (a)(6)(i), (1) Recordkeeping. Recordkeeping 437) is subject to reporting under this (a)(6)(ii), (a)(6)(iv), (b) (concentration set requirements as specified in § 721.125 section for the significant new uses at 1.0 percent), and (c). (a), (h), and (i) are applicable to described in paragraph (a)(2) of this (ii) Hazard communication program. manufacturers, importers, and section. Requirements as specified in § 721.72 processors of this substance. (2) The significant new uses are: (a), (b), (c), (d), (e) (concentration set at (2) Limitations or revocation of (i) Protection in the workplace. 1.0 percent), (f), (g)(1)(i), (g)(1)(ii), certain notification requirements. The Requirements as specified in § 721.63 (g)(2)(i), (g)(2)(ii), (g)(2)(iii), (g)(2)(iv), provisions of § 721.185 apply to this (a)(1), (a)(3), (a)(4), (a)(5)(i), (a)(6)(i), (g)(2)(v), and (g)(5). Manufacturers, section. (a)(6)(ii), (a)(6)(iii), (a)(6)(iv), (a)(6)(v), importers, and processors who 63738 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations implement the product stewardship (1) The chemical substance identified § 721.4663 Fluorinated carboxylic acid provisions of the section 5(e) consent generically as lithium manganese oxide alkali metal salts. order for these substances are exempt (LiMn204) (P–96–175) is subject to (a) Chemical substance and from the requirements of §§ 721.63 and reporting under this section for the significant new uses subject to reporting. 721.72. significant new uses described in (1) The chemical substances identified (b) Specific requirements. The paragraph (a)(2) of this section. as fluorinated carboxylic acid alkali provisions of subpart A of this part (2) The significant new uses are: metal salts (PMNs P–95–979/980/981) apply to this section except as modified are subject to reporting under this by this paragraph. (i) Hazard communication program. A section for the significant new uses (1) Recordkeeping. Recordkeeping significant new use of this substance is described in paragraph (a)(2) of this requirements as specified in § 721.125 any manner or method of manufacture, section. (a) through (h) are applicable to import, or processing associated with (2) The significant new uses are: manufacturers, importers, and any use of these substances without (i) Industrial, commercial and processors of this substance. providing risk notification as follows: consumer activities. Requirements as Manufacturers, importers, and (A) If as a result of the test data specified in § 721.80 (v)(2), (w)(2), and processors who implement the product required under the section 5(e) consent (x)(2). stewardship provisions or keep records order for these substances, the employer (ii) Release to water. Requirements as as required by the section 5(e) consent becomes aware that these substances specified in § 721.90 (a)(4), (b)(4), and order for these substances are exempt may present a risk of injury to human (c)(4), (N = 100 ppb for P–95–979), (N from the requirements of § 721.125. health or the environment the employer = 30 ppb for P–95–980), and (N = 3 ppb (2) Limitations or revocation of must incorporate this new information, for P–95–981). certain notification requirements. The and any information on methods for (b) Specific requirements. The provisions of § 721.185 apply to this protecting against such risk, into a provisions of subpart A of this part section. Material Safety Data Sheet (MSDS) as apply to this section except as modified (3) Applicability of § 721.5. The described in § 721.72(c) within 90 days by this paragraph. provisions of § 721.5 do not apply to from the time the employer becomes (1) Recordkeeping. Recordkeeping manufacturers, importers, and aware of the new information. If these requirements as specified in § 721.125 processors, implementing the product substances are not being manufactured, (a), (b), (c), (i), and (k) are applicable to stewardship provisions in the section imported, processed, or used in the manufacturers, importers, and 5(e) consent order for these substances. employer’s workplace, the employer processors of this substance. 18. By adding new § 721.4525 to must add the new information to an (2) Limitations or revocation of certain notification requirements. The subpart E to read as follows: MSDS before the substances are provisions of § 721.185 apply to this reintroduced into the workplace. § 721.4525 Isothiazolinone derivatives section. (generic name). (B) The employer must ensure that 21. By adding new § 721.4668 to (a) Chemical substance and persons who will receive, or who have subpart E to read as follows: significant new uses subject to reporting. received their substances from the employer within 5 years from the date § 721.4668 Hydrated alkaline earth metal (1) The chemical substances identified salts of metalloid oxyanions. generically as isothiazolinone the employer becomes aware of the new (a) Chemical substance and derivatives (PMNs P–95–116/117) are information described in paragraph significant new uses subject to reporting. subject to reporting under this section (a)(2)(i)(A) of this section, are provided (1) The chemical substance identified as for the significant new uses described in an MSDS as described in § 721.72(c) hydrated alkaline earth metal salts of paragraph (a)(2) of this section. containing the information required (2) The significant new uses are: under paragraph (a)(2)(i)(A) of this metalloid oxyanions (PMN P–94–1557) (i) Industrial, commercial, and section within 90 days from the time the is subject to reporting under this section consumer activities. Requirements as employer becomes aware of the new for the significant new uses described in specified in § 721.80(f). information. paragraph (a)(2) of this section. (2) The significant new uses are: (ii) Release to water. Requirements as (ii) Industrial, commercial, and specified in § 721.90 (a)(4), (b)(4), and (i) Protection in the workplace. consumer activities. Requirements as Requirements as specified in § 721.63 (c)(4) (where n = 10). specified in § 721.80(q). (b) Specific requirements. The (a)(4), (a)(5)(iii), (a)(5)(iv), (a)(5)(v), (b) Specific requirements. The provisions of subpart A of this part (a)(5)(vi), (a)(5)(vii), (a)(5)(viii), (a)(6)(i), provisions of subpart A of this part apply to this section except as modified (b), and (c). apply to this section except as modified by this paragraph. (ii) Hazard communication program. (1) Recordkeeping. Recordkeeping by this paragraph. Requirements as specified in § 721.72 requirements as specified in § 721.125 (1) Recordkeeping. Recordkeeping (a), (b), (c), (d), (e), (f), (g)(1)(vi), (a), (b), (c), (i), and (k) are applicable to requirements as specified in § 721.125 (g)(1)(ix), (g)(2)(ii), (g)(2)(iii), (g)(2)(iv), manufacturers, importers, and (a), (h), and (i) are applicable to and (g)(5). processors of this substance. manufacturers, importers, and (iii) Industrial, commercial, and (2) Limitations or revocation of processors of these substances. consumer activities. Requirements as certain notification requirements. The (2) Limitations or revocation of specified in § 721.80(q). (b) Specific requirements. The provisions of § 721.185 apply to this certain notification requirements. The provisions of subpart A of this part section. provisions of § 721.185 apply to this apply to this section except as modified 19. By adding new § 721.4587 to section. subpart E to read as follows: by this paragraph. (3) Determining whether a specific use (1) Recordkeeping. Recordkeeping § 721.4587 Lithium Manganese Oxide is subject to this section. The provisions requirements as specified in § 721.125 (LiMn204) (generic name). of § 721.1725(b)(1) apply to this section. (a), (b), (c), (d), (f), (g), (h), and (i) are (a) Chemical substance and 20. By adding new § 721.4663 to applicable to manufacturers, importers, significant new uses subject to reporting. subpart E to read as follows: and processors of this substance. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63739

(2) Limitations or revocation of provisions of § 721.185 apply to this apply to this section except as modified certain notification requirements. The section. by this paragraph. provisions of § 721.185 apply to this 24. By adding new § 721.5545 to (1) Recordkeeping. Recordkeeping section. subpart E to read as follows: requirements as specified in § 721.125 (3) Determining whether a specific use (a), (b), (c), and (i) are applicable to is subject to this section. The provisions § 721.5545 3-(Dichloroacetyl)-5-(2-furanyl)- manufacturers, importers, and 2,2-dimethyl-oxazolidine. of § 721.1725(b)(1) apply to this section. processors of this substance. 22. By adding new § 721.4685 to (a) Chemical substance and (2) Limitations or revocation of subpart E to read as follows: significant new uses subject to reporting. certain notification requirements. The (1) The chemical substance identified as provisions of § 721.185 apply to this § 721.4685 Substituted purine metal salt 3-(dichloroacetyl)-5-(2-furanyl)-2,2- section. (generic name). dimethyloxazolidine (PMN P–93–1694) 26. By adding new § 721.6097 to (a) Chemical substance and (CAS no. 121776–57–6) is subject to subpart E to read as follows: significant new uses subject to reporting. reporting under this section for the (1) The chemical substance identified significant new uses described in § 721.6097 Phosphoric acid derivative generically as a substituted purine metal paragraph (a)(2) of this section. (generic name). salt (PMN P–95–175) is subject to (2) The significant new uses are: (a) Chemical substance and reporting under this section for the (i) Protection in the workplace. significant new uses subject to reporting. significant new uses described in Requirements as specified in § 721.63 (1) The chemical substance identified paragraph (a)(2) of this section. (a)(1), (a)(3), (a)(4), (a)(5)(i), (a)(6)(i), (b) generically as a phosphoric acid (2) The significant new uses are: (concentration set at 0.1%), and (c). derivative (PMN P–95–284) is subject to (i) Release to water. Requirements as (ii) Hazard communication program. reporting under this section for the specified in § 721.90 (a)(4), (b)(4), and Requirements as specified in § 721.72 significant new uses described in (c)(4) (where N = 8) (a), (b), (c), (d), (e) (concentration set at paragraph (a)(2) of this section. (ii) [Reserved] 0.1%), (f), (g)(1)(iv), (g)(1)(vii), (g)(1)(ix), (2) The significant new uses are: (b) Specific requirements. The (g)(2)(iii), (g)(2)(iv), (g)(2)(v), (g)(3)(i), (i) Release to water. Requirements as provisions of subpart A of this part (g)(3)(ii), and (g)(5). specified in § 721.90 (a)(1), (b)(1), and apply to this section except as modified (iii) Industrial, commercial, and (c)(1). by this paragraph. consumer activites. Requirements as (ii) [Reserved] (1) Recordkeeping. Recordkeeping specified in § 721.80 (b), (c), (k) (as a (b) Specific requirements. The requirements as specified in § 721.125 seed safener), and (o). provisions of subpart A of this part (a), (b), (c), and (k) are applicable to (b) Specific requirements. The apply to this section except as modified manufacturers, importers, and provisions of subpart A of this part by this paragraph. processors of this substance. apply to this section except as modified (1) Recordkeeping. Recordkeeping (2) Limitations or revocation of by this paragraph. requirements as specified in § 721.125 certain notification requirements. The (1) Recordkeeping. Recordkeeping (a), (b), (c), and (k) are applicable to provisions of § 721.185 apply to this requirements as specified in § 721.125 manufacturers, importers, and section. (a), (b), (c), (d), (e), (f), (g), (h), and (i) processors of this substance. 23. By adding new § 721.5276 to are applicable to manufacturers, (2) Limitations or revocation of subpart E to read as follows: importers, and processors of this certain notification requirements. The substance. provisions of § 721.185 apply to this § 721.5276 2-Naphthalenol, heptyl-1-[[(4- section. phenylazo)phenyl]azo]-, ar',ar''-Me derivs. (2) Limitations or revocation of certain notification requirements. The 27. By adding new § 721.8673 to (a) Chemical substance and provisions of § 721.185 apply to this subpart E to read as follows: significant new uses subject to reporting. section. (1) The chemical substance identified as § 721.8673 [(Disubstituted phenyl)]azo 25. By adding new § 721.5930 to dihydro hydroxy alkyl oxo alkyl-substituted- 2-naphthalenol, heptyl-1-[[(4- subpart E to read as follows: phenylazo)phenyl] azo]-, ar’,ar’’-Me pyridines (generic name). derivs (PMN P–95–538) is subject to § 721.5930 Phenylenebis[imino (a) Chemical substance and reporting under this section for the (chlorotriazinyl)imino(substituted significant new uses subject to reporting. significant new uses described in naphthyl)azo(substituted phenyl)azo, (1) The chemical substances identified paragraph (a)(2) of this section. sodium salt (generic name). generically as [(disubstituted (2) The significant new uses are: (a) Chemical substance and phenyl)]azo dihydro hydroxy alkyl oxo (i) Industrial, commercial, and significant new uses subject to reporting. alkyl-substituted-pyridines (PMN P–95– consumer activities. Requirements as (1) The chemical substance identified 510/511) are subject to reporting under specified in § 721.80 (v)(1), (w)(1), and generically as phenylenebis[imino this section for the significant new uses (x)(1). (chlorotriazinyl)imino(substituted described in paragraph (a)(2) of this (ii) [Reserved] naphthyl)azo (substituted phenyl) azo, section. (b) Specific requirements. The sodium salt (PMN P–95–274) is subject (2) The significant new uses are: provisions of subpart A of this part to reporting under this section for the (i) Industrial, commercial, and apply to this section except as modified significant new uses described in consumer activities. Requirements as by this paragraph. paragraph (a)(2) of this section. specified in § 721.80(f). (1) Recordkeeping. Recordkeeping (2) The significant new uses are: (ii) [Reserved] requirements as specified in (i) Industrial, commercial, and (b) Specific requirements. The § 721.125(a), (b), (c), and (i) are consumer activities. Requirements as provisions of subpart A of this part applicable to manufacturers, importers, specified in § 721.80(f). apply to this section except as modified and processors of this substance. (ii) [Reserved] by this paragraph. (2) Limitations or revocation of (b) Specific requirements. The (1) Recordkeeping. Recordkeeping certain notification requirements. The provisions of subpart A of this part requirements as specified in § 721.125 63740 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

(a), (b), (c), and (i) are applicable to § 721.9680 Alkaline titania silica gel DEPARTMENT OF HEALTH AND manufacturers, importers, and (generic name). HUMAN SERVICES processors of this substance. (a) Chemical substance and Health Care Financing Administration (2) Limitations or revocation of significant new uses subject to reporting. certain notification requirements. The (1) The chemical substance identified provisions of § 721.185 apply to this 42 CFR Parts 401, 403, 405, 411, 413, generically as an alkaline titania silica 447, and 493 significant new use rule. gel (PMN P–95–529) is subject to 28. By adding new § 721.9495 to reporting under this section for the [BPO±118±FC] subpart E to read as follows: significant new uses described in RIN 0938±AC99 § 721.9495 Acrylosilane resins. paragraph (a)(2) of this section. Medicare Program; Changes (2) The significant new uses are: (a) Chemical substance and Concerning Suspension of Medicare significant new uses subject to reporting. (i) Industrial, commercial, and Payments, and Determinations of (1) The chemical substances identified consumer activities. Requirements as Allowable Interest Expenses as acrylosilane resins (PMNs P–95– specified in § 721.80 (v)(1), (w)(1), and 1024/1040) are subject to reporting (x)(1). AGENCY: Health Care Financing under this section for the significant Administration (HCFA), HHS. (ii) [Reserved] new uses described in paragraph (a)(2) ACTION: Final rule with comment period. of this section. (b) Specific requirements. The (2) The significant new uses are: provisions of subpart A of this part SUMMARY: We are revising the Medicare (i) Industrial, commercial and apply to this section except as modified regulations concerning suspension of consumer activities. Requirements as by this paragraph. Medicare payments and determination of allowable interest expenses. These specified in § 721.80(l). (1) Recordkeeping. Recordkeeping (ii) [Reserved] changes are being made to conform the requirements as specified in § 721.125 regulations with law and established (b) Specific requirements. The (a), (b), (c), and (i) are applicable to provisions of subpart A of this part policy, to provide necessary manufacturers, importers, and clarification, and to protect the apply to this section except as modified processors of these substances. by this paragraph. Government’s interests. (1) Recordkeeping. Recordkeeping (2) Limitations or revocation of DATES: Effective date: These regulations requirements as specified in certain notification requirements. The are effective January 2, 1997. § 721.125(a), (b), (c), and (i) are provisions of § 721.185 apply to this Comment Date: We are providing a applicable to manufacturers, importers, significant new use rule. comment period on the issues described and processors of this substance. 31. By adding new § 721.9970 to in section V of this preamble. Written (2) Limitations or revocation of subpart E to read as follows: comments will be considered if we certain notification requirements. The receive them at the appropriate address, provisions of § 721.185 apply to this § 721.9970 o-Xylene compound (generic as provided below, no later than 5 p.m. section. name). on January 31, 1997. 29. By adding new § 721.9507 to (a) Chemical substance and ADDRESSES: Mail written comments (an subpart E to read as follows: significant new uses subject to reporting. original and three copies) to the following address: Health Care § 721.9507 Polyester silane. (1) The chemical substance identified generically as an o-xylene compound Financing Administration, Department (a) Chemical substance and (PMN P–95–1030) is subject to reporting of Health and Human Services, significant new uses subject to reporting. under this section for the significant Attention: BPO–118–FC, P.O. Box (1) The chemical substance identified as new uses described in paragraph (a)(2) 26688, Baltimore, MD 21207. a polyester silane (P–95–1022) is subject If you prefer, you may deliver your of this section. to reporting under this section for the written comments (an original and three significant new uses described in (2) The significant new uses are: copies) to one of the following paragraph (a)(2) of this section. (i) Industrial, commercial, and addresses: (2) The significant new uses are: consumer activities. Requirements as Room 309–G, Hubert H. Humphrey (i) Industrial, commercial and specified in § 721.80(j). Building, 200 Independence Avenue consumer activities. Requirements as (ii) [Reserved] SW., Washington, DC 20201, or specified in § 721.80(l). Room C5–09–26, 7500 Security (ii) [Reserved] (b) Specific requirements. The Boulevard, Baltimore, MD 21244– (b) Specific requirements. The provisions of subpart A of this part 1850. provisions of subpart A of this part apply to this section except as modified Because of staffing and resource apply to this section except as modified by this paragraph. limitations, we cannot accept comments by this paragraph. (1) Recordkeeping. Recordkeeping by facsimile (Fax) transmission. In (1) Recordkeeping. Recordkeeping requirements as specified in § 721.125 commenting, please refer to file code requirements as specified in § 721.125 (a), (b), (c), and (i) are applicable to BPO–118–FC. Comments received (a), (b), (c), and (i) are applicable to manufacturers, importers, and timely will be available for public manufacturers, importers, and processors of this substance. inspection as they are received, processors of this substance. (2) Limitations or revocation of generally beginning approximately 3 (2) Limitations or revocation of certain notification requirements. The weeks after publication of a document, certain notification requirements. The provisions of § 721.185 apply to this in Room 309–G of the Department’s provisions of § 721.185 apply to this section. offices at 200 Independence Ave., SW., section. Washington, DC, on Monday through 30. By adding new § 721.9680 to [FR Doc. 96–30474 Filed 11–29–96; 8:45 am] Friday of each week from 8:30 a.m. to subpart E to read as follows: BILLING CODE 6560±50±F 5 p.m. (phone: (202) 690–7890). Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63741

FOR FURTHER INFORMATION CONTACT: regulations reflect only the role of firm. Three commenters believed that James Conrad (suspension of payments, intermediaries and carriers.) the changes would make suspension fraud and abuse), (410) 786–6976; Ward Under current law and delegations of more effective, would reduce Pleines (all other provisions), (410) 786– authority, HCFA is responsible for administrative costs, and would have 4528. operating the Medicare program. The little effect on current practice. The OIG is responsible for conducting other commenters were primarily SUPPLEMENTARY INFORMATION: investigations and identifying concerned with the cash flow problems I. Suspension of Medicare Payments wrongdoers and abusers of HHS that could result from the suspension of programs so appropriate remedies can payment without a 30-day notice. Their A. Background be applied, as well as identifying specific concerns are presented below. Sections 1815 (a) and (d) and 1833(j) weaknesses or problems in the Note that, unless otherwise indicated, of the Social Security Act (the Act) and management of HHS programs. (See the references in our responses to sections the Federal Claims Collection Act of Statements of Organization, Function, of the regulations are to the sections in 1966, as amended, (31 U.S.C. 3711) and Delegations of Authority, for HCFA this final rule. allow a Medicare contractor (that is, an and for OIG (49 FR 35247, published Comment: Several commenters intermediary or carrier) that has the September 6, 1984, and 54 FR 46775, expressed concern that the proposed opportunity to offset an overpayment to published November 7, 1989, changes concerning suspension of do so. This provision is set forth in respectively).) Medicare payments in cases of overpayments would allow an existing regulations at 42 CFR 401.607 B. Provisions of Proposed Rule (a) and (d) and 405.1803(c). In addition, intermediary or carrier to withhold all existing § 405.370 provides that On August 22, 1988, we published a payment to a provider or supplier proposed rule, at 53 FR 31888, in which payments authorized to be made to without notification until an we proposed to eliminate the providers and suppliers under the overpayment was recouped and that this requirement that, before suspension of Medicare program may be suspended, in could have a devastating effect on the payment, the contractor make a whole or in part, by a Medicare cash flow of providers and suppliers, determination that suspension of contractor when the contractor has possibly even causing bankruptcies. payments to a provider or supplier is determined that the provider or supplier Response: There appears to be some needed to protect the program against has been overpaid or when the confusion and misunderstanding of the financial loss. We also proposed contractor has reliable evidence that scope of the changes we proposed to clarifying our policy regarding the either an overpayment exists or that the make in this area. We generally do not disposition of suspended payments. As payments to be made may not be intend to suspend payments without at proposed, suspended funds would first least a 15-day notice of this action to the correct. Existing § 405.370(b), however, be applied to liquidate, in whole or in provider or supplier. (There are three requires that, in order to proceed with part, overpayments that are the basis for exceptions to giving prior notice: (1) a suspension of payment, the contractor the suspension. Any remaining When a suspension is imposed in must have determined that ‘‘the suspended funds would be applied to accordance with section 1815(a) or suspension of payments, in whole or in any other determined Medicare section 1833(e) of the Act because the part, is needed to protect the program overpayments. In the absence of a provider or supplier, respectively, has against financial loss.’’ Section 405.370 further obligation to HHS (such as failed to submit information requested does not specify the disposition of Medicaid overpayments) or other legal by the Medicare contractor that is suspended payments, nor do the requirement (such as civil money needed to determine the amounts due regulations address how long payment penalties or an Internal Revenue Service the provider or supplier; (2) when we or may be suspended. Also, the existing levy), the excess would be released to the Medicare contractor determines that regulations do not differentiate between the provider or supplier. Readers who the Medicare Trust funds would be the terms ‘‘suspension of payments,’’ are interested in the details of our harmed by giving prior notice; and (3) ‘‘offset,’’ and ‘‘recoupment.’’ proposals are referred to the proposed at our discretion in cases involving In addition, the existing regulations rule. fraud or misrepresentation.) Our do not clearly specify the procedures (Note that, in order to expedite certain proposal merely intended to eliminate applicable when fraud is suspected; changes that were contained in the the requirement for a separate they merely provide that payment may August 1988 proposed rule, that is, determination that a suspension of be suspended without advance notice proposed changes pertaining to the payments is necessary to protect and that the provider or supplier will be assessment of interest charges on Medicare against financial loss before notified of the suspension and the overpayments and underpayments, we contractors can proceed with the reasons for it. (When the existing proceeded with them in a separate final suspension. In addition, in this final regulations were published (May 27, rule, published in the Federal Register rule, we clarify that at least a 15-day 1972, 37 FR 10723), the HHS Office of on July 10, 1991, at 56 FR 31332. The notice to the provider or supplier is Inspector General (OIG), which is provisions of the July 1991 rule appear given in cases of recoupment or offset, responsible for conducting at § 405.376. The remaining proposed terms that are defined in this rule. investigations involving fraud and changes are contained in this final rule.) Payment is recouped or offset in those willful misrepresentation, had not been cases in which the amount of an created, and the Social Security C. Summary of and Responses to Public overpayment has been determined, and Administration (SSA) administered the Comments any future payment to a provider or Medicare program. Suspension of In response to the proposed rule, we supplier will be offset (that is, applied) Medicare payment based on fraud or received 12 items of correspondence, against the identified overpayment abuse was accomplished by Medicare each containing comments on the issue generally until the amount of the contractors in consultation with SSA, at of suspension of Medicare payments. overpayment is recovered. Offset or the direction of the Bureau of Health The commenters included health care recoupment constitutes constructive Insurance, the SSA component then facilities, health care associations, a payment to the provider or supplier. responsible for Medicare. Therefore, the Medicare contractor, and an accounting Payment is suspended if we or the 63742 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

Medicare contractor has determined that termination of collection action and current regulations at § 405.371(d) to the provider or supplier has been compromise of claims for overpayment’’ apply to all instances of failure to overpaid but the actual amount of the to better describe the section’s contents supply information except those in overpayment has not yet been (and redesignated it as § 405.376). For which a cost report is not filed. This determined. Therefore, additional effort the same reason, we have revised the provision is set forth at § 405.372(a)(2) is required before the amount of the headings of paragraph (e) (from ‘‘Basis in this final rule. As in the current overpayment can be determined. We for terminations’’ to ‘‘Basis for regulations, it specifies that the prior believe that the notice requirement termination of collection action’’) and notice and rebuttal provisions do not provides ample time for providers and paragraph (f) (from ‘‘Basis for apply if the provider failed to submit suppliers to submit evidence to the suspension’’ to ‘‘Basis for suspension of evidence requested by the intermediary intermediary or carrier to prevent collection action’’). that is needed to determine the amounts suspension, recoupment, or offset and to • Revised existing § 405.375, due the provider under the Medicare avoid cash flow problems. However, in ‘‘Withholding Medicare payments to program. However, unlike new response to the commenters’ concerns recover Medicaid overpayments’’ (and § 405.371(c) (‘‘Suspension in the case of and in an effort to eliminate confusion, redesignated it as § 405.377), to clarify unfiled cost reports’’), the time in this final rule we have— our policy with regard to withholding limitation on suspension established by • Added, at § 405.370, the following Medicare payments to offset Medicaid this final rule, and discussed in the definitions of ‘‘suspension of payment,’’ overpayments. response to the following comment, ‘‘offset,’’ and ‘‘recoupment.’’ We are also taking this opportunity to applies. Offset. The recovery by Medicare of a create two separate provisions to Comment: Since immediate non-Medicare debt by reducing present address two separate situations suspension of payments could cause or future Medicare payments and concerning failure to furnish great hardship to many Medicare applying the amount withheld to the information. Current regulations at providers and suppliers, one commenter indebtedness. (Examples are Public § 405.371(d) (‘‘Failure to furnish believed it only fair to continue the Health Service debts or Medicaid debts information requested’’) provide for requirement of a separate determination recovered by HCFA). suspending payments in all situations in that suspension is needed to protect the Recoupment. The recovery by which information is not supplied, program from financial loss. Medicare of any outstanding Medicare including when a provider fails to file Response: As discussed above, all debt by reducing present or future a cost report. It has been our long- providers and suppliers will generally Medicare payments and applying the standing policy that, if a provider has receive prior notification of the amount withheld to the indebtedness. failed to timely file an acceptable cost suspension, recoupment, or offset action Suspension of payment. The report, payment is immediately and have at least 15 days to reply. The withholding of payment by an suspended until an acceptable cost notification of overpayment will state intermediary or carrier from a provider report is filed. This regulation and that, if there is no reply within the or supplier of an approved Medicare policy are based on sections 1815(a) and timeframe specified in the notification, payment amount before a determination 1833(e) of the Act. Section 1815(a) the Medicare contractor will then begin of the amount of the overpayment provides, in part, that ‘‘no *** action. If no reply is received from the exists. payments shall be made to any provider provider or supplier, we believe that • Reorganized and revised the unless it has furnished such information suspension is required to protect a provisions related to suspension of as the Secretary may request in order to program such as Medicare or Medicaid payment in order to set forth our policy determine the amounts due such from financial loss and that it is not more clearly (see § 405.372, ‘‘Proceeding provider under this part [Medicare Part necessary to make a separate for suspension of payment’’). These A] for the period with respect to which determination on that fact. Even if a changes from the proposed rule have the amounts are being paid or any prior reply is received, suspension may be been made to improve the readability of period.’’ Section 1833(e) of the Act required, and a separate determination the regulations and to clearly set forth contains similar language with respect is unnecessary. the existing process and policy; we have to payments made under Part B of If the provider or supplier submits a not made any substantive changes that Medicare. statement as to why a suspension of were not included in our proposed rule In this final rule we set forth a payment, recoupment, or offset should or that are not being made in response separate provision, new § 405.371(c), not be put into effect, the intermediary to public comment. (Note that, because specifically addressing the suspension or carrier will have 15 days from the of the restructuring of the provisions of payments in the case of unfiled cost date the statement is received to related to suspension, it was necessary reports. Section 405.371(c) specifies consider the statement and make a to also reorganize and revise other that, if a provider has failed to timely determination whether the facts justify provisions set forth in existing file an acceptable cost report, payment a suspension, or removal of a §§ 405.370 through 405.373. Again, in to the provider is immediately suspension already initiated. accomplishing this reorganization, we suspended until a cost report is filed Suspension, however, will not be have not made any substantive changes and determined by the intermediary to delayed in order to review any that were not included in our proposed be acceptable. This section further statement submitted. rule or that are not being made in specifies that, in the case of an unfiled In further response to the concerns response to public comment.) We will, cost report, the provisions of § 405.372 expressed by the commenters, we have however, consider timely comments (‘‘Proceeding for suspension of decided to impose a limitation upon from anyone who believes that, in payment’’) do not apply. We believe that how long we will suspend payment making these changes, we have this is consistent with the above-cited pending a determination whether or not unintentionally altered the meaning. mandate that ‘‘no payment shall be an overpayment exists and in matters • Revised existing § 405.374, made * * * unless it has furnished involving fraud or willful ‘‘Collection and compromise of claims such information * * *.’’ misrepresentation. The purpose of for overpayment’’ by changing the In addition, we are retaining, with suspending payment is to verify section heading to ‘‘Suspension and editorial modifications, the provision in whether, and how much, payment was Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63743 actually due the provider for past claims offset, first from suspended funds, then imposed without prior notice. (We and to ensure that, if a provider or from any other monies owed the debtor believe, however, that suspension supplier was overpaid, sufficient funds in accordance with usual Medicare without prior notice would be the are available to recover the program rules. (See, for example, exception.) overpayment. These actions are clearly § 401.607(a)). Note that, in contrast to II. Determination of Allowable Interest necessary to protect the Trust Funds the decision to suspend payment, an from loss. It is implicit that, when overpayment determination is an initial Expense payment is suspended, determinations determination, subject to appeal, but A. Background of overpayment, or of fraud or willful that appeals do not delay recoupment. Under the Medicare program, health misrepresentation, should be made Also note that, as defined in this final care providers not subject to the rule at § 405.370, recoupment may promptly. Accordingly, because it is prospective payment system generally appropriate that a provider or supplier constitute 100 percent of any monies are paid for the reasonable costs of the receive a prompt determination so that due if the debt to Medicare is equal to covered items and services they furnish it may receive any balances actually due or greater than the amounts payable. to Medicare beneficiaries. Section after application of recoupment or Nonetheless, for the very reasons raised 1861(v)(1)(A) of the Act defines offset, we have decided to limit by the commenters, Medicare usually reasonable costs as the cost actually suspension of Medicare payment to 180 does not impose 100 percent incurred, excluding any cost days, with a possible extension of up to recoupment in the absence of a basis for unnecessary in the efficient delivery of 180 additional days being granted to the doing so, such as the debtor’s failure to needed health services. Section intermediary, carrier, or OIG by HCFA. respond to a demand letter. 1861(v)(1)(A) also provides that This period will enable us or the carrier Under current law and delegations of or intermediary, as the case may be, to authority, HCFA is responsible for reasonable costs be determined in investigate and to determine the operating the Medicare program. This accordance with regulations that amounts of any Medicare overpayments includes making determinations establish the methods to be used and the or, in cases involving the OIG, for the whether to suspend payment. In cases of items to be included for purposes of OIG to complete its investigation, while suspected fraud or willful determining which costs are allowable protecting the Medicare Trust Funds. At misrepresentation, the determination for various types or classes of the same time, providers and suppliers whether to suspend is generally made institutions, agencies, and services. Providers may generally include have the security of knowing that the after consultation with the OIG, the interest expense (the cost incurred for suspension may culminate in an Medicare contractor, U.S. Attorney, and the use of funds borrowed for patient appealable determination within a other law enforcement agencies as care-related purposes) in allowable specific period of time if the claims are appropriate to the case. Where the OIG costs, but, under existing subsequently denied. (A decision to or other law enforcement agency § 413.153(b)(2)(iii), allowable interest suspend payment is not an initial requests suspension, the requesting expense must be reduced by investment determination subject to appeal under agency must advise us of the basis for income. Additionally, this section of the §§ 405.704, 405.803, or 405.1803.) the request. Thus, although the OIG is In addition, we recognize that there responsible for identifying, regulations provides that investment may be special circumstances in which investigating, and pursuing matters of income from gifts and grants (whether the specified time limit (that is, 180 fraud and abuse, HCFA is responsible restricted or unrestricted) is not used to days plus up to 180 additional days) for determining whether there is reliable reduce interest expense if the gift and may not be sufficient. Therefore, we evidence of an overpayment, whether to grant funds are held separate and not may grant an exception to the time suspend payment, and, if the decision is commingled with other funds. The latter limits in the following situations: to suspend payment, whether advance provision was intended to ensure that • The case has been referred to, and notice of the suspension should be providers maintain the discrete nature is being considered by, the OIG for given. (If advance notice is to be given, of the grant funds and to facilitate the administrative action, that is, civil we usually direct the Medicare intermediaries’ application of proper money penalties. contractor to give the notice.) The payment principles to the resulting • The Department of Justice, Medicare contractor is responsible for investment income. generally through the United States promptly determining the overpayment. Section 1134 of the Act, which was Attorney with jurisdictional Once the amount of an overpayment is added by section 901 of the Omnibus responsibility, submits a written request determined, the suspended payments Reconciliation Act of 1980 (ORA ’80), to HCFA that the suspension be are applied to recoup the overpayment. Public Law 96–499, provides that, in the continued based on the ongoing Although the Medicare contractor may case of nonprofit hospitals, interest investigation and anticipated filing of implement a suspension, offset, or income from grants, gifts, or criminal and/or civil actions. At a recoupment, HCFA is the real party in endowments, that have not been minimum, the request must include the interest and is responsible for the designated by the donor to be used to following: actions. defray specific operating costs, is not to *Identification of the entity under This final rule clarifies that our be offset against interest income. suspension. decision regarding whether to suspend The provisions of section 901 of ORA *The amount of time needed for payment may be based on information ’80, as well as our established position continued suspension in order to provided by the intermediary, carrier, a on commingling of funds, were implement the criminal and/or civil law enforcement agency, or other incorporated in Transmittal No. 279 proceedings. source. We will normally provide at issued in January 1983. This transmittal, *A statement of why and/or how least a 15-day delay before suspension which revised section 202.6 of the criminal and/or civil actions may be is imposed. However, when it appears Provider Reimbursement Manual (HCFA affected if the requested extension is not that the Medicare Trust Funds would be Pub. 15–1), permits the pooling of funds granted. harmed by providing this notice or in for investment purposes, provided Once a determination is made, any matters involving fraud or adequate records are maintained to overpayments will be recouped or misrepresentation, suspension may be enable the proper identification of funds 63744 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations and investment income applicable to Because established program policy HHS regulations applicable to HCFA each. has always required that investment that generally implement the Federal Existing § 413.153(b)(2)(iii) excludes income earned on a provider’s deferred Claims Collection Act (FCCA) for the the following types of income from the compensation fund (Provider Department and are located at 45 CFR interest expense offset requirements: Reimbursement Manual, section 2140 part 30. We add a statement to • Investment income from separately ff.) or self-insurance fund (section paragraph (d) to clarify that those held and noncommingled gifts and 2162.7) become part of those funds, it is regulations apply only to the extent grants. unavailable for offset against interest HCFA regulations do not address a • Income from a provider’s funded expense. We simply proposed to add situation. depreciation. these exclusions from interest expense • We revise § 401.607 (Claims • Income from qualified employee offset to the regulations text to conform collection). Paragraph (d)(1) of this pension funds. it to the established policy. section states that ‘‘[i]n conformity with • Interest received as a result of 4 CFR 102.3, HCFA may offset, where judicial review by a Federal court. C. Analyses of and Responses to Public possible, the amount of a claim against Under our current operating policy, Comments the amount of * * * monies that a investment income from a provider’s We received a comment on these debtor is receiving or is due from the deferred compensation funds and self- proposals with the following concern: Federal government.’’ The ‘‘conformity’’ insurance funds that meet the program’s Comment: The commenter requested phrase was included to reflect that offset qualifying compensation plans provided that the proposed clarification of of Medicare debts is consistent with in section 2140 of the Provider § 413.153(b)(2)(iii) to permit the pooling general FCCA regulations. It was not Reimbursement Manual and the of funds from grants and gifts be further intended to impose additional qualifying criteria for self-insurance modified to explicitly include monies requirements not included in HCFA’s funds described in subsection 2162.7 of from funded depreciation for nonprofit FCCA regulations. It has come to our the Manual must become part of those hospitals. attention, however, that this phrase has funds and, as such, is unavailable for Response: Section 413.153(b)(2)(iii) caused confusion. Therefore, in order to offset against interest expense. never prohibited the commingling of eliminate this confusion, we remove the funded depreciation monies for phrase. B. Provisions of the Proposed • In § 405.1803, ‘‘Intermediary Regulations investment purposes by either proprietary or nonprofit providers. determination and notice of amount of We proposed to revise Therefore, we believe that the change program reimbursement,’’ we revise § 413.153(b)(2)(iii) to modify the suggested by the commenter is paragraph (c), currently titled ‘‘Use of restriction against commingling to unnecessary. notice as basis for recovery of permit the pooling of grant, gift, or overpayments,’’ to conform it to the endowment funds for investment III. Provisions of the Final Rule terminology and process this rule purposes for all providers, rather than This final rule with comment period establishes in §§ 405.370 through only the nonprofit hospitals referenced incorporates those provisions of the 405.377. First, we change the word in section 1134 of the Act. This change August 1988 proposed rule that were ‘‘recovery’’ wherever it appears in was proposed to conform the not incorporated into the regulations by paragraph (c) to ‘‘recoupment’’. Second, regulations to our current operating the July 10, 1991 final rule, with the we replace the phrase ‘‘including the policy as set forth in section 202.6 of the changes listed below. The rationale for suspending of further payments to the Provider Reimbursement Manual (HCFA these changes has been discussed above provider in order to recover, or to aid in Pub. 15–1). in our responses to comments. the recovery of,’’ with ‘‘including As a conforming change, we also • We include definitions of the terms recoupment under § 405.373 from proposed to remove the regulations text ‘‘offset,’’ ‘‘recoupment,’’ and ongoing payment to the provider of’’. located at § 413.5(c)(3). This section ‘‘suspension of payment.’’ (See Third, we make a minor editorial contains outdated statements § 405.370.) change to break the existing first concerning offsetting of restricted • We clarify that at least a 15-day sentence into two sentences. Finally, grants, gifts, and income from notice to the provider or supplier is because the cross reference made by the endowments and ceased being effective given in cases of recoupment or offset, last sentence is no longer correct and we with cost reporting periods beginning as well as in cases of suspension of believe a cross reference is not on or after October 1, 1983. payment. (See § 405.374(a).) necessary, we remove the last sentence. We also proposed to make a technical • We limit the duration of a • We make a number of technical change to the regulations at suspension of payment. (See changes (such as revising cross- § 413.90(b)(2) to remove the provision § 405.372(d).) reference citations because of the that required the offset of research grant • We clarify the procedures redesignations made by this final rule) funds (used for usual patient care applicable to suspension of payment that do not affect the substance of the purposes in conjunction with basic when fraud or willful misrepresentation provisions. medical and hospital research) against is suspected. (See § 405.372 (a) and (e).) IV. Regulatory Impact Statement usual patient care costs. This provision In addition to the above changes, became obsolete with cost reporting which were discussed in the responses Consistent with the Regulatory periods beginning on or after October 1, to comments, we make the following Flexibility Act (RFA) (5 U.S.C. 601 1983. clarifying, conforming, and technical through 612), we prepare a regulatory We further proposed to clarify changes: flexibility analysis unless the Secretary § 413.153(b)(2)(iii) by adding to the • We revise § 401.601, which sets certifies that a final rule with comment exclusions from interest expense offset forth the basis and scope of subpart F period will not have a significant investment income on— (Claims Collection and Compromise) of economic impact on a substantial • A provider’s deferred compensation part 401 (General Administrative number of small entities. For purposes plans; and Requirements). Paragraph (d) of this of the RFA, all providers and suppliers • Self-insurance trust funds. section identifies, as related regulations, are considered to be small entities. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63745

In addition, section 1102(b) of the Act (2) The fact that suspension or offset 42 CFR Part 493 requires the Secretary to prepare a or recoupment will not be delayed regulatory impact analysis if a rule may beyond the date stated in the notice Grant programs—health, Health have a significant impact on the from the intermediary or carrier in order facilities, Laboratories, Medicaid, operations of a substantial number of to review any statement submitted. Medicare, Reporting and recordkeeping requirements. small rural hospitals. This analysis must (3) The inclusion of time limits on the conform to the provisions of section 604 period during which payment may be 42 CFR chapter IV is amended as of the RFA. For purposes of section suspended. follows: 1102(b) of the Act, we define a small (4) The clarification of applicable PART 405ÐFEDERAL HEALTH rural hospital as a hospital that is procedures in the case of suspension of located outside of a Metropolitan INSURANCE FOR THE AGED AND payment if fraud or willful DISABLED Statistical Area and has fewer than 50 misrepresentation is suspected. beds. A. Part 405 is amended as set forth Elimination of the requirement at (5) The creation of two separate below: existing § 405.370(b) that an provisions concerning suspension of intermediary or carrier make a prior payment for failure to furnish information. Subpart CÐSuspension of Payment, determination that a suspension of Recovery of Overpayments, and payment is needed to protect the (6) The reorganization of the Repayment of Scholarships and Loans Medicare program against financial loss provisions. may have an adverse economic effect on Because of the large number of items 1. The authority citation for subpart C some providers and suppliers. However, of correspondence we normally receive continues to read as follows: we do not believe that this policy will on regulations, we cannot acknowledge Authority: Secs. 1102, 1815, 1833, 1842, affect a significant number of providers or respond to them individually. We 1866, 1870, 1871, 1879 and 1892 of the and suppliers. Additionally, the time will, however, consider all comments Social Security Act (42 U.S.C. 1302, 1395g, limits on suspension established by this concerning the issues noted directly 1395l, 1395u, 1395cc, 1395gg, 1395hh, final rule may mitigate the adverse above that are received by the date and 1395pp and 1395ccc) and 31 U.S.C. 3711. effect of our modifications to time specified in the ‘‘DATES’’ section of 2. The undesignated center heading § 405.370(b). this preamble. If we proceed with a preceding § 405.370 is revised to read as subsequent document, we will respond In addition to the changes previously follows: discussed in the notice of proposed to the comments in the preamble to that rulemaking, we have made certain document. SUSPENSION AND RECOUPMENT OF clarifying changes. We do not anticipate PAYMENT TO PROVIDERS AND List of Subjects any economic effects resulting from our SUPPLIERS AND COLLECTION AND clarifications of already existing policy. 42 CFR Part 401 COMPROMISE OF OVERPAYMENTS For these reasons, we are not Claims, Freedom of information, 3. Sections 405.370 through 405.373 preparing analyses for either the RFA or Health facilities, Medicare, Privacy. are redesignated as §§ 405.371 through section 1102 of the Act since we have 405.374, respectively, and current determined, and the Secretary certifies, 42 CFR Part 403 §§ 405.374 through 405.376 are that this rule will not result in a redesignated as § 405.376 through significant economic impact on a Health insurance, Hospitals, 405.378, respectively. substantial number of small entities and Intergovernmental relations, Medicare, will not have a significant impact on the Reporting and recordkeeping 4. New §§ 405.370 and 405.375 are operations of a substantial number of requirements. added, and redesignated §§ 405.371 through 405.374 are revised, to read as small rural hospitals. 42 CFR Part 405 In accordance with the provisions of follows: Administrative practice and Executive Order 12866, this regulation § 405.370 Definitions. was reviewed by the Office of procedure, Health facilities, Health For purposes of this subpart, the Management and Budget. professions, Kidney diseases, Medicare, Reporting and recordkeeping following definitions apply: V. Public Comment Period requirements, Rural areas, X-rays. Offset. The recovery by Medicare of a non-Medicare debt by reducing present We have made certain changes from 42 CFR Part 411 the proposed rule to improve the or future Medicare payments and readability of the regulations and to Kidney diseases, Medicare, Physician applying the amount withheld to the clearly set forth the existing process and referral, Reporting and recordkeeping indebtedness. (Examples are Public policy. In doing so, we have not made requirements. Health Service debts or Medicaid debts recovered by HCFA). any substantive changes to existing 42 CFR Part 413 regulations that were not included in Recoupment. The recovery by our proposed rule or that are not being Health facilities, Kidney diseases, Medicare of any outstanding Medicare made in response to public comment on Medicare, Puerto Rico, Reporting and debt by reducing present or future the proposed rule. While a prior public recordkeeping requirements. Medicare payments and applying the comment period is not required in this amount withheld to the indebtedness. 42 CFR Part 447 case, we are granting the public an Suspension of payment. The opportunity to comment on these Accounting, Administrative practice withholding of payment by an changes. As stated earlier, we are and procedure, Drugs, Grant programs— intermediary or carrier from a provider providing 60-day comment period on health, Health facilities, Health or supplier of an approved Medicare the following: professions, Medicaid, Reporting and payment amount before a determination (1) The differences between recordkeeping requirements, Rural of the amount of the overpayment suspension, recoupment, and offset. areas. exists. 63746 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

§ 405.371 Suspension, offset, and needed to determine the amounts due determination. As soon as the recoupment of Medicare payments to the provider or supplier. (See determination is made, the intermediary providers and suppliers of services. § 405.371(c) concerning failure to file or carrier informs the provider or (a) General. Medicare payments to timely acceptable cost reports.) supplier and, if appropriate, the providers and suppliers, as authorized (3) Harm to Trust Funds. A suspension is rescinded or any existing under this subchapter (excluding suspension of payment may be imposed recoupment or offset is adjusted to take payments to beneficiaries), may be— without prior notice if HCFA, the into account the determination. (1) Suspended, in whole or in part, by intermediary, or carrier determines that (d) Duration of suspension of HCFA, an intermediary, or a carrier if the Medicare Trust Funds would be payment—(1) General rule. Except as HCFA, the intermediary, or the carrier harmed by giving prior notice. HCFA provided in paragraphs (d)(2) and (d)(3) possesses reliable information that an may base its determination on an of this section, a suspension of payment overpayment or fraud or willful intermediary’s or carrier’s belief that is limited to 180 days, starting with the misrepresentation exists or that the giving prior notice would hinder the date the suspension begins. payments to be made may not be possibility of recovering the money. (2) 180-day extension. (i) An correct, although additional evidence (4) Fraud or misrepresentation. If the intermediary, a carrier, or, in cases of may be needed for a determination; or intended suspension of payment fraud and misrepresentation, OIG or a (2) Offset or recouped, in whole or in involves suspected fraud or law enforcement agency, may request a part, by an intermediary or a carrier if misrepresentation, HCFA determines one-time only extension of the the intermediary, carrier, or HCFA has whether to impose the suspension and suspension period for up to 180 determined that the provider or supplier if prior notice is appropriate. HCFA additional days if it is unable to to whom payments are to be made has directs the intermediary or carrier as to complete its examination of the been overpaid. the timing and content of the information or investigation, as (b) Steps necessary for suspension of notification to the provider or supplier. appropriate, within the 180-day time payment, offset, and recoupment. HCFA is the real party in interest and limit. The request must be submitted in Except as provided in paragraph (c) of is responsible for the decision. HCFA writing to HCFA. this section, HCFA, the intermediary, or may base its decision on information (ii) Upon receipt of a request for an carrier suspends payments only after it from the intermediary, carrier, law extension, HCFA notifies the provider has complied with the procedural enforcement agencies, or other sources. or supplier of the requested extension. requirements set forth at § 405.372. The HCFA determines whether the HCFA then either extends the intermediary or carrier offsets or information is reliable. suspension of payment for up to an recoups payments only after it has (b) Rebuttal—(1) If prior notice is additional 180 days or determines that complied with the procedural required. If prior notice is required the suspended payments are to be requirements set forth at § 405.373. under paragraph (a) of this section, the released to the provider or supplier. (c) Suspension of payment in the case intermediary or carrier must give the (3) Exceptions to the time limits. (i) of unfiled cost reports. If a provider has provider or supplier an opportunity for The time limits specified in paragraphs failed to timely file an acceptable cost rebuttal in accordance with § 405.374. If (d)(1) and (d)(2) of this section do not report, payment to the provider is a rebuttal statement is received within apply if the case has been referred to, immediately suspended until a cost the specified time period, the and is being considered by, the OIG for report is filed and determined by the suspension of payment goes into effect administrative action (for example, civil intermediary to be acceptable. In the on the date stated in the notice, and the money penalties). case of an unfiled cost report, the procedures and provisions set forth in (ii) HCFA may grant an extension in provisions of § 405.372 do not apply. § 405.375 apply. If by the end of the addition to the extension provided (See § 405.372(a)(2) concerning failure period specified in the notice no under paragraph (d)(2) of this section if to furnish other information.) statement has been received, the the Department of Justice submits a suspension goes into effect written request to HCFA that the § 405.372 Proceeding for suspension of automatically, and the procedures set suspension of payment be continued payment. forth in paragraph (c) of this section are based on the ongoing investigation and (a) Notice of intention to suspend—(1) followed. anticipated filing of criminal and/or General rule. Except as provided in (2) If prior notice is not required. If, civil actions. At a minimum, the request paragraphs (a)(2) through (a)(4) of this under the provisions of paragraphs must include the following: section, if the intermediary, carrier, or (a)(2) through (a)(4) of this section, a (A) Identification of the entity under HCFA has determined that a suspension suspension of payment is put into effect suspension. of payments under § 405.371(a)(1) without prior notice to the provider or (B) The amount of time needed for should be put into effect, the supplier, the intermediary or carrier continued suspension in order to intermediary or carrier must notify the must, once the suspension is in effect, implement the criminal and/or civil provider or supplier of the intention to give the provider or supplier an proceedings. suspend payments, in whole or in part, opportunity to submit a rebuttal (C) A statement of why and/or how and the reasons for making the statement as to why the suspension criminal and/or civil actions may be suspension. should be removed. affected if the requested extension is not (2) Failure to furnish information. The (c) Subsequent action. If a suspension granted. notice requirement of paragraph (a)(1) of of payment is put into effect, the (e) Disposition of suspended this section does not apply if the intermediary, carrier, or HCFA takes payments. Payments suspended under intermediary or carrier suspends timely action after the suspension to the authority of § 405.371(b) are first payments to a provider or supplier in obtain the additional evidence it may applied to reduce or eliminate any accordance with section 1815(a) or need to make a determination as to overpayments determined by the section 1833(e) of the Act, respectively, whether an overpayment exists or the intermediary, carrier, or HCFA, because the provider or supplier has payments may be made. The including any interest assessed under failed to submit information requested intermediary, carrier, or HCFA makes the provisions of § 405.378, and then by the intermediary or carrier that is all reasonable efforts to expedite the applied to reduce any other obligation Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63747 to HCFA or to HHS. In the absence of submit any statement (to include any termination of collection action on, a legal requirement that the excess be pertinent information) as to why it claims for overpayments against a paid to another entity, the excess is should not be put into effect on the date provider or a supplier under the released to the provider or supplier. specified in the notice. Except as Medicare program. It is adopted under provided in paragraph (b) of this the authority of the Federal Claims § 405.373 Proceeding for offset or section, the provider or supplier has at Collection Act (31 U.S.C. 3711). recoupment. least 15 days following the date of Collection and compromise of claims (a) General rule. Except as specified in notification to submit the statement. against Medicare beneficiaries are paragraph (b) of this section, if the (b) Exception. The intermediary or explained at 20 CFR 404.515. intermediary, carrier, or HCFA has carrier may for cause— * * * * * determined that an offset or recoupment (1) Impose a shorter period for (e) Basis for termination of collection of payments under § 405.371(a)(2) rebuttal; or action. should be put into effect, the (2) Extend the time within which the * * * * * intermediary or carrier must— statement must be submitted. (1) Notify the provider or supplier of (f) Basis for suspension of collection its intention to offset or recoup § 405.375 Time limits for, and notification action. payment, in whole or in part, and the of, administrative determination after * * * * * reasons for making the offset or receipt of rebuttal statement. 6. Redesignated § 405.377 is revised to recoupment; and (a) Submission and disposition of read as follows: (2) Give the provider or supplier an evidence. If the provider or supplier opportunity for rebuttal in accordance submits a statement, under § 405.374, as § 405.377 Withholding Medicare payments to recover Medicaid overpayments. with § 405.374. to why a suspension of payment, offset, (b) Paragraph (a) of this section does or recoupment should not be put into (a) Basis and purpose. This section not apply if the intermediary, after effect, or, under § 405.372(b)(2), why a implements section 1885 of the Act, furnishing a provider a written notice of suspension should be terminated, which provides for withholding the amount of program reimbursement HCFA, the intermediary, or carrier must Medicare payments to certain Medicaid in accordance with § 405.1803, recoups within 15 days, from the date the providers that have not arranged to payment under paragraph (c) of statement is received, consider the repay Medicaid overpayments as § 405.1803. (For provider rights in this statement (including any pertinent determined by the Medicaid State circumstance, see §§ 405.1809, evidence submitted), together with any agency or have failed to provide 405.1811, 405.1815, 405.1835, and other material bearing upon the case, information necessary to determine the 405.1843.) and determine whether the facts justify amount (if any) of overpayments. (c) Actions following receipt of the suspension, offset, or recoupment (b) When withholding may be used. rebuttal statement. If a provider or or, if already initiated, justify the HCFA may withhold Medicare payment supplier submits, in accordance with termination of the suspension, offset, or to offset Medicaid overpayments that a § 405.374, a statement as to why an recoupment. Suspension, offset, or Medicaid agency has been unable to offset or recoupment should not be put recoupment is not delayed beyond the collect if— into effect on the date specified in the date stated in the notice in order to (1) The Medicaid agency has followed notice, the intermediary or carrier must review the statement. the procedure specified in § 447.31 of comply with the time limits and (b) Notification of determination. The this chapter; and notification requirements of § 405.375. intermediary or carrier must send (2) The institution or person is one (d) No rebuttal statement received. If, written notice of the determination described in paragraph (c) of this by the end of the time period specified made under paragraph (a) of this section section and either— in the notice, no statement has been to the provider or supplier. The notice (i) Has not made arrangements received, the recoupment or offset goes must— satisfactory to the Medicaid agency to into effect automatically. (1) In the case of offset or recoupment, repay the overpayment; or (e) Duration of recoupment or offset. contain rationale for the determination; (ii) Has not provided information to If a recoupment or offset is put into and the Medicaid agency necessary to enable effect, it remains in effect until the (2) In the case of suspension of the agency to determine the existence or earliest of the following: payment, contain specific findings on amount of Medicaid overpayment. (1) The overpayment and any assessed the conditions upon which the (c) Institutions or persons affected. interest are liquidated. suspension is initiated, continued, or Withholding under paragraph (b) of this (2) The intermediary or carrier obtains removed and an explanatory statement section may be made with respect to any a satisfactory agreement from the of the determination. of the following entities that has or had provider or supplier for liquidation of (c) Determination is not appealable. A in effect an agreement with a Medicaid the overpayment. determination made under paragraph (a) agency to furnish services under an (3) The intermediary or carrier, on the of this section is not an initial approved Medicaid State plan: basis of subsequently acquired evidence determination and is not appealable. (1) An institutional provider that has or otherwise, determines that there is no 5. In redesignated § 405.376, the in effect an agreement under section overpayment. heading of the section, paragraph (a), 1866 of the Act. (Part 489 (Provider and Supplier Agreements) implements § 405.374 Opportunity for rebuttal. and the headings of paragraphs (e) and (f) are revised to read as follows: section 1866 of the Act.) (a) General rule. If prior notice of the (2) A physician or supplier that has suspension of payment, offset, or § 405.376 Suspension and termination of accepted payment on the basis of an recoupment is given under § 405.372 or collection action and compromise of claims assignment under section § 405.373, the intermediary or carrier for overpayment. 1842(b)(3)(B)(ii) of the Act. (Section must give the provider or supplier an (a) Basis and purpose. This section 424.55 sets forth the conditions a opportunity, before the suspension, contains requirements and procedures supplier agrees to in accepting offset, or recoupment takes effect, to for the compromise of, or suspension or assignment.) 63748 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

(d) Amount to be withheld. (1) HCFA in its notice is the basis for making the (i) It is incurred on a loan made to contacts the appropriate intermediary or retroactive adjustment (required by satisfy a financial need of the provider. carrier to determine the amount of § 413.64(f) of this chapter) to any Loans that result in excess funds or Medicare payment to which the program payments made to the provider investments are not considered institution or person is entitled. during the period to which the necessary. (2) HCFA may require the determination applies, including (ii) It is incurred on a loan made for intermediary or carrier to withhold recoupment under § 405.373 from a purpose reasonably related to patient Medicare payments to the institution or ongoing payments to the provider of any care. person by the lesser of the following overpayments to the provider identified (iii) It is reduced by investment amounts: in the determination. Recoupment is income except income from— (i) The amount of the Medicare made notwithstanding any request for (A) Gifts, grants, and endowments, payments to which the institution or hearing on the determination the whether held separately or pooled with person would otherwise be entitled. provider may make under § 405.1811 or other funds; (ii) The total Medicaid overpayment § 405.1835. (B) Funded depreciation that meets to the institution or person. the program’s qualifying criteria; (e) Notice of withholding. If HCFA PART 413ÐPRINCIPLES OF (C) The provider’s qualified pension intends to withhold payments under REASONABLE COST funds; this section, it notifies by certified mail, REIMBURSEMENT; PAYMENT FOR (D) The provider’s deferred return receipt requested, the institution END-STAGE RENAL DISEASE compensation funds that meet the or person and the appropriate SERVICES; OPTIONAL program’s qualifying criteria; and (E) The provider’s self-insurance trust intermediary or carrier of the intention PROSPECTIVELY DETERMINED funds that meet the program’s qualifying to withhold Medicare payments and PAYMENT RATES FOR SKILLED NURSING FACILITIES criteria. follows the procedure in § 405.374. The (iv) It is not reduced by interest notice includes— B. Part 413 is amended as set forth received as a result of judicial review by (1) Identification of the institution or below: a Federal court (as described in person; and 1. The authority citation for part 413 § 413.64(j)). (2) The amount of Medicaid continues to read as follows: overpayment to be withheld from * * * * * C. Technical Amendments. payments to which the institution or Authority: Sec. 1102, 1861(v)(1)(A), and 1871 of the Social Security Act (42 U.S.C. person would otherwise be entitled 1302, 1395x(v)(1)(A), and 1395hh). PART 401ÐGENERAL under Medicare. ADMINISTRATIVE REQUIREMENTS (f) Termination of withholding. HCFA § 413.5 [Amended] terminates the withholding if— 2. In § 413.5, paragraph (c)(3) is 1. The authority citation for part 401 (1) The Medicaid overpayment is removed and reserved. is revised to read as follows: completely recovered; 3. In § 413.90, paragraph (b)(2) is Authority: Secs. 1102 and 1871 of the (2) The institution or person enters revised to read as follows: Social Security Act (42 U.S.C. 1302 and into an agreement satisfactory to the 1395hh). Subpart F is also issued under the Medicaid agency to repay the § 413.90 Research costs. authority of the Federal Claims Collection overpayment; or * * * * * Act (31 U.S.C. 3711). (b) Application. (1) * * * (3) The Medicaid agency determines § 401.601 [Amended] that there is no overpayment based on (2) If research is conducted in newly acquired evidence or a conjunction with, and as a part of, the 2. In § 401.601, the following changes subsequent audit. care of patients, the costs of usual are made: a. The following sentence is added at (g) Disposition of funds withheld. patient care and studies, analyses, the end of paragraph (d)(1): ‘‘These HCFA releases amounts withheld under surveys, and related activities to serve regulations apply only to the extent this section to the Medicaid agency to the provider’s administrative and HCFA regulations do not address a be applied against the Medicaid program needs are allowable costs in the situation.’’ overpayment made by the State agency. determination of payment under Medicare. b. In paragraph (d)(2)(iii), the phrase Subpart RÐProvider Reimbursement 4. In § 413.153, paragraph (a)(1) ‘‘§§ 405.374 and 405.376’’ is removed, Determinations and Appeals introductory text is republished, and and the phrase ‘‘§§ 405.377 and paragraphs (a)(1)(ii) and (b)(2) are 405.378’’ is added in its place. 7. The authority citation for part 405, revised to read as follows: subpart R continues to read as follows: § 401.607 [Amended] § 413.153 Interest expense. 3. In § 401.607, in paragraph (d)(1), Authority: Secs. 205, 1102, 1814(b), the phrase ‘‘In conformity with 4 CFR 1815(a), 1833, 1861(v), 1871, 1872, 1878, and (a)(1) Principle. Necessary and proper 1886 of the Social Security Act (42 U.S.C. interest on both current and capital 102.3,’’ is removed. 405, 1302, 1395(b), 1395g(a), 1395l, 1395x(v), indebtedness is an allowable cost. PART 403ÐSPECIAL PROGRAMS AND 1395hh, 1395ii, 1395oo, and 1395ww). However, interest costs are not PROJECTS 8. In § 405.1803, paragraph (c) is allowable if incurred as a result of— revised to read as follows: (i) * * * 4. The authority citation for part 403 (ii) An interest assessment on a continues to read as follows: § 405.1803 Intermediary determination and determined overpayment (as described notice of amount of program in § 405.377 of this chapter); or Authority: Secs. 1102 and 1871 of the reimbursement. Social Security Act (42 U.S.C. 1302 and * * * * * 1395hh). * * * * * (b) Definitions. (1) * * * (c) Use of notice as basis for (2) Necessary. Necessary interest is § 403.310 [Amended] recoupment of overpayments. The interest that meets the following 5. In § 403.310, in the last sentence of intermediary’s determination contained requirements: paragraph (a), the citation ‘‘§ 405.376’’ is Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63749 removed, and the citation ‘‘§ 405.378’’ is § 447.31 [Amended] another person or entity. Technical added in its place. 14. In § 447.31, in paragraph (a), the revisions are also made to the rule. citation ‘‘§ 405.375’’ is removed, and the DATES: This final rule is effective on PART 405ÐFEDERAL HEALTH citation ‘‘§ 405.377’’ is added in its January 1, 1997. INSURANCE FOR THE AGED AND place. FOR FURTHER INFORMATION CONTACT: DISABLED Victor Fortuno, General Counsel, (202) PART 493ÐLABORATORY 336–8910. Subpart GÐReconsiderations and REQUIREMENTS Appeals Under Medicare Part A SUPPLEMENTARY INFORMATION: On May 15. The authority citation for part 493 19, 1996, the Operations and 6. The authority citation for part 405, continues to read as follows: Regulations Committee (‘‘Committee’’) subpart G continues to read as follows: Authority: Sec. 353 of the Public Health of the LSC Board of Directors (‘‘Board’’) Authority: Secs. 1102, 1151, 1154, 1156, Service Act, secs. 1102, 1861(e), the sentence requested the LSC staff to prepare an 1869(b), 1871, 1872, and 1879 of the Social following 1861(s)(11), 1861(s)(12), interim rule to implement section 504 in Security Act (42 U.S.C. 1302, 1320c, 1320c– 1861(s)(13), 1861(s)(14), 1861(s)(15), and the Corporation’s FY 1996 3, 1320c–4, 1395ff(b), 1395hh, 1395ii, and 1861(s)(16) of the Social Security Act (42 appropriations act, Pub. L. 104–134, 110 1395pp). U.S.C. 263a, 1302, 1395x(e), the sentence Stat. 1321 (1996), which applied most following 1395x(s)(11), 1395(s)(12), conditions contained therein to any § 405.705 [Amended] 1395(s)(13), 1395(s)(14), 1395(s)(15), and 7. In § 405.705, in paragraph (d), the 1395(s)(16)). person or entity receiving LSC funds, following changes are made: effectively restricting virtually all of a a. The citation ‘‘(31 U.S.C. 951–953)’’ § 493.1834 [Amended] recipient’s funds to the same degree that is removed, and the citation ‘‘(31 U.S.C. 16. In § 493.1834, in paragraph it restricts LSC funds. The Committee 3711)’’ is added in its place. (i)(1)(ii), the citation ‘‘§ 405.376(d)’’ is held hearings on staff proposals on July b. The citation ‘‘§ 405.374’’ is removed, and the citation 8 and 19, and the Board adopted an removed, and the citation ‘‘§ 405.376’’ is ‘‘§ 405.378(d)’’ is added in its place. interim rule on July 20 for publication added in its place. (Catalog of Federal Domestic Assistance in the Federal Register. Although the Program No. 93.773, Medicare—Hospital interim rule was effective upon § 405.1801 [Amended] Insurance; and Program No. 93.774, publication, see 61 FR 41960 (August 8. In § 405.1801, in paragraph (a)(4), Medicare—Supplementary Medical 13, 1996), the Corporation also solicited the citation ‘‘§ 405.374’’ is removed, and Insurance Program) comments on the rule for review and the citation ‘‘§ 405.376’’ is added in its Dated: July 30, 1996. consideration by the Committee and place. Bruce C. Vladeck, Board. The Corporation received 8 comments PART 411ÐEXCLUSIONS FROM Administrator, Health Care Financing Administration. on the rule. The Committee held public MEDICARE AND LIMITATIONS ON hearings on the rule on September 29, Dated: August 16, 1996. MEDICARE PAYMENT 1996, and made several Donna E. Shalala, 9. The authority citation for part 411 recommendations for revisions to the Secretary. continues to read as follows: Board. The Board adopted this final rule [FR Doc. 96–30057 Filed 11–29–96; 8:45 am] on September 30, 1996. Authority: Secs. 1102 and 1871 of the BILLING CODE 4120±01±P The Corporation’s FY 1997 Social Security Act (42 U.S.C. 1302 and 1395hh). appropriations act became effective on October 1, 1996, see Pub. L. 104–208, § 411.28 [Amended] LEGAL SERVICES CORPORATION 110 Stat. 3009. It incorporated by 10. In § 411.28, in paragraph (b), the reference the § 504 conditions on LSC citation ‘‘§ 405.374’’ is removed, and the 45 CFR Part 1610 grants and other sections of the FY 1996 citation ‘‘§ 405.376’’ is added in its appropriations act implemented by this place. Use of Non-LSC Funds rule. Accordingly, the preamble and text AGENCY: of this rule continue to refer to the § 413.20 [Amended] Legal Services Corporation. ACTION: Final rule. appropriate section number of the FY 11. In § 413.20, in paragraph (e), the 1996 appropriations act. citation ‘‘§ 405.371(a)’’ is removed SUMMARY: This final rule revises the As did the interim rule, this final rule wherever it appears (twice), and the Legal Services Corporation’s generally serves two purposes. First, it citation ‘‘§ 405.372(a)’’ is added in place (‘‘Corporation’’ or ‘‘LSC’’) interim rule incorporates the new statutory of the first appearance, and concerning the use of non-LSC funds by conditions which apply to both a ‘‘§ 405.372(b)’’ is added in place of the LSC recipients. The revisions to this recipient’s LSC and non-LSC funds. Past second appearance. rule are intended to implement appropriations acts applied restrictions § 413.153 [Amended] provisions first appearing in the contained in those acts only to the funds Corporation’s Fiscal Year (‘‘FY’’) 1996 appropriated thereunder. In contrast, 2. In § 413.153, in paragraph (a)(1)(iii), appropriations act that are currently the new statutory provisions prohibit the citation ‘‘§ 405.376’’ is removed, and incorporated by reference in the LSC from funding any recipient that the citation ‘‘§ 405.378’’ is added in its Corporation’s FY 1997 appropriations engages in certain specified activities or place. act. With a few exceptions, many of the that fails to act in a manner consistent PART 447ÐPAYMENTS FOR new statutory conditions effectively with new statutory requirements. SERVICES restrict a recipient’s non-LSC funds to Second, this rule retains several the same degree they restrict a technical revisions made in the interim 13. The authority citation for part 447 recipient’s LSC funds. This rule also rule which corrected provisions in the continues to read as follows: clarifies the extent to which conditions prior rule that had never been revised to Authority: Sec. 1102 of the Social Security on a recipient’s non-LSC funds apply be consistent with longstanding Act (42 U.S.C. 1302). when a recipient transfers its funds to amendments to the LSC Act. Finally, in 63750 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations response to public comment, this rule definition have been in the definition clarifies that, for the purposes of this revises provisions in the interim rule since 1978, and the listing has been and part, IOLTA funds will be treated in the dealing with transfers of a recipient’s still is very specific, in that it cites to same manner as public funds. ‘‘Tribal funds. sections of the LSC Act containing the funds’’ are defined as funds received by A section-by-section discussion of prohibited purposes as well as to the a recipient from an Indian tribe or from this final rule is provided below. regulations implementing those a private nonprofit foundation or Section 1610.1 Purpose sections. In addition, the use of organization that are given for the ‘‘purpose’’ is well understood in Federal benefit of Indians or Indian tribes. The purpose of this rule is to Appropriations Law, and is rooted in 31 The definitions of ‘‘private attorney,’’ implement statutory conditions on a U.S.C. § 1301(a), which requires the use ‘‘law firm,’’ and ‘‘State or local entity of recipient’s use of non-LSC funds. These of Federal funds for the purposes for attorneys’’ have been deleted as no conditions are found in the LSC Act which they are appropriated. See longer necessary, due to changes made (‘‘Act’’), 42 U.S.C. § 2996 et seq., and Principles of Federal Appropriations by the Board to § 1610.6 of the interim Pub. L. 104–134, 110 Stat. 1321 (1996), Law, Chapter 4, ‘‘Availability of rule, as discussed below. as incorporated by Pub. L. 104–208, 110 Appropriations: Purpose’’ at 4–1 (1991). A new definition of ‘‘transfer’’ has Stat. 3009 (1996). No changes were made in response to been added that was not included in the Section 1610.2 Definitions this comment. interim rule. The definition is necessary ‘‘Activity prohibited by or to clarify the application of this part to The interim rule revised the inconsistent with Section 504’’ lists the a transfer of recipient funds, as definition of ‘‘purposes prohibited by prohibitions and requirements in discussed below under § 1610.7. A the LSC Act’’ in several ways. It deleted section 504 (a) of the Corporation’s FY ‘‘transfer’’ is defined as a transfer of a reference to a prohibition on the 1996 appropriations act that have been recipient’s funds for the purpose of representation of juveniles, because the included by reference in the conducting programmatic activities that prohibition is no longer in the LSC Act. Corporation’s FY 1997 appropriations are normally conducted by the It also deleted reference to those act. These prohibitions and recipient, such as the representation of restrictions on activities in the LSC Act requirements apply to a recipient’s eligible clients, or that provide direct that are now included in the broader activities, regardless of the source of support to the recipient’s legal restriction in the Corporation’s funding. The definition also makes assistance activities. A transfer is not appropriations act. Numbering changes reference to subsections 504(b) and intended to include a non-programmatic were also made to correspond to the 504(e), which provide exceptions to fee-for-service arrangement or a numbering changes that were made by those conditions on specific activities payment for goods or services. the 1977 amendments to the LSC Act. supported by non-LSC funds. These changes have been retained in the A few comments suggested that the Section 1610.3 Prohibition final rule. Corporation should distinguish between The prohibition section in the interim The interim rule also deleted those conditions on funds in the rule included the new statutory reference to fee-generating cases from definition of ‘‘activity prohibited by or restrictions on various activities in the definition of a ‘‘purpose prohibited inconsistent with Section 504’’ that are Section 504. No comments were by the LSC Act.’’ The deletion had a prohibitions, such as restrictions on received suggesting changes to this very narrow impact on recipients, in class actions and certain lobbying section, and the only changes made in that they could take fee-generating cases activities, and those that are operational the final rule are technical. with private funds without following requirements, such as those on priorities the procedures set out in 45 CFR part and timekeeping. The main concern of Section 1610.4 Authorized Use of 1609. However, LSC staff recommended the comments relates to application of Other Funds and the Board agreed that the reference the rule to transfers of recipients’ funds. This section clarifies that the to fee-generating cases should be The Board agreed that the concerns restrictions in section 504 apply to included in the final rule. raised by the comments should be activities supported by all funds except The deletion of the provision relating addressed, but did not make any tribal funds, while those restrictions in to fee-generating cases was based on an changes to the definition. Rather, it the LSC Act which are not covered by analysis that the provision in the Act made changes reflected in § 1610.7, section 504 apply only to LSC and merely imposes procedural which deals with the application of the private funds. requirements and does not prohibit the conditions in this definition to transfers Section 1610.4(a): Paragraph (a) sets taking of fee-generating cases. On of recipient funds. out an exception included in both the reflection, however, the Board The definitions for ‘‘IOLTA funds,’’ LSC Act and Section 504 for tribal concluded that the fee-generating ‘‘non-LSC funds,’’ ‘‘private funds,’’ funds. The exception exempts tribal provision is a prohibition. ‘‘public funds,’’ and ‘‘tribal funds’’ are funds from the general prohibition on One comment stated that the the same as in the interim rule. ‘‘IOLTA the use of non-LSC funds, as long as the definition of ‘‘purpose prohibited by the funds’’ is defined as funds derived from tribal funds are used for the purposes LSC Act’’ is deficient, because the word programs established by State court for which they were provided. ‘‘purpose’’ is not adequately defined in rules or legislation that collect and Section 1610.4(b). Section 1610.4(b) either the LSC Act or part 1610. The distribute interest earned on lawyers’ implements the exception in the LSC LSC Act and part 1610, however, do not client trust accounts. ‘‘Non-LSC funds’’ Act for public funds which permits attempt to define the word ‘‘purpose;’’ are funds derived from a source other recipients to use public funds in rather, the rule interprets the clause in than the Corporation and would include accordance with the purposes for which the LSC Act that includes the word— both public and private funds. ‘‘Private the funds were provided. However, ‘‘purpose prohibited by the LSC Act’’— funds’’ are defined as funds derived because the Corporation’s FY 1996 by specifically listing every activity the from an individual or entity other than appropriations act contains no Corporation has determined to be a a governmental source or LSC. ‘‘Public exception for public funds for most of prohibited purpose under the Act. The funds’’ is similar to the definition of its restrictions on activities, language is prohibited purposes listed in this ‘‘public funds’’ in part 1600, but also included providing that public funds Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63751 may not be used for any activity not constitute any significant additional subject matter of paragraph (a) becomes prohibited by or inconsistent with burden to incorporate the required the whole of § 1610.6, and a new Section 504. In accordance with current notification into the acknowledgement. § 1610.7 (corresponding to §§ 1610.6(b) LSC policy, the section also provides No change has been made in response and (c) of the interim rule) is created to that for purposes of applying this to this comment. address the transfer of funds provisions. regulation, IOLTA funds are to be Section 504(d)(1) and the interim rule Comments on paragraph (a) of the treated the same as public funds. required notification before the interim rule expressed concern and Section 1610.4(c). Paragraph (c) states recipient ‘‘accepts’’ the funds. The confusion about the scope of the the exception that allows recipients to Corporation has advised recipients in paragraph. Most of the confusion use private funds if they use them for Program Letter 96–3 that notice should focused on the paragraph’s attempt to the purposes for which they were be given during the course of soliciting implement a provision in section provided, and if they do not use their funds or applying for a grant or contract. 1010(c) of the LSC Act. Section 1010(c) private funds for any activity prohibited For unsolicited donations, the program generally requires that if a recipient’s by the LSC Act or prohibited by or letter states that notice should be given LSC funds are subject to a prohibition inconsistent with § 504. in the recipient’s letter acknowledging under the LSC Act, a recipient’s private Section 1610.4(d). Section 1610.4(d) the contribution. For contracts and funds are also subject to the same reflects § 504(d)(2)(B) of the grants already awarded for which notice prohibition. An exception to this Corporation’s FY 1996 appropriations has not been given, recipients are requirement, however, was included in act, which provides that a recipient may advised in the program letter to notify the Act for ‘‘private attorneys, private use non-LSC funds to provide legal the funding source before the next law firms, or other State or local entities assistance to financially ineligible payment is accepted. No change has of attorneys, or * * * legal aid societies persons, provided that the funds are been made in response to this comment. having separate public defender used for the specific purpose for which Finally, the notification requirement programs.’’ This exception was intended they were received and are not used in relates to funds received by recipients as to provide relief for these individuals a manner that violates the LSC Act or grants, contracts or charitable donations and entities with limited or special § 504. from funders other than the grants or contracts made by the Corporation, which are intended to fund Section 1610.5 Notification Corporation, such as demonstration the non-profit work of the recipient. It grants. See Conf. Rep. No. 845 93rd This section incorporates the does not include funds received from Cong., 2d Sess. 30–31 (1974); Cong. Rec. requirement of § 504(d)(1) of the sources such as court payment to H5132–33 ( June 21, 1973); H3952–53 appropriations act that recipients may attorneys for their work under court (May 16, 1974); S12629 (July 16, 1974); not accept funds from non-LSC sources appointments; nor does it include S12923, 12925, 12935, 12954 (July 18, unless they provide written notice to the payments to the recipient for rent, bank 1974). The exception was also intended funders that their funds may not be used interest, or sale of goods, such as to allow the Corporation to fund the in any manner inconsistent with the manuals. LSC Act or § 504. The requirement The Board determined that the civil legal assistance activities of applies only to cash contributions; substance of this section, including the programs, such as legal aid societies, recipients are not required to notify under-$250 de minimis exception, with separate public defender programs. persons or organizations who make non- should be retained. Nonetheless, the The new statutory conditions in the cash donations or volunteer their time Board made two changes to this section Corporation’s FY 1996 appropriations or services to the recipient. in the final rule. First, in response to a act, as incorporated by the Corporation’s In an effort to relieve recipients of comment from a recipient that receives FY 1997 appropriations act, modify this some of the administrative burden that tribal funds, paragraph (a) is revised to exception because the Corporation is might be imposed by the notice clarify that notification is required only prohibited from giving grants to any requirement, the interim regulation when the funds are in fact restricted. person or entity that does not comply contained a de minimis exception. The Thus, when a recipient receives tribal with the conditions set out in section exception relieves recipients of the funds to which the restrictions do not 504. Accordingly, the Board decided to notice requirement for contributions of apply, no notice is required to the revise paragraph (a) in the final rule to less than $250. One comment source of the funds. This language limit the exception to a recipient’s questioned whether the rule intends clarifies that notice is not required for public defender programs and projects that LSC recipients follow the same those restrictions on non-LSC funds that which provide legal representation in reporting requirements and guidelines are found exclusively in the LSC Act. criminal proceedings and actions used by the IRS in reporting donations Second, for clarity, a technical change challenging criminal convictions, and to of $250 or more. The comment also was made to paragraph (b) by adding explicitly permit such representation on asked when and how often notification ‘‘receipt of ‘‘ before contributions. behalf of aliens and prisoners. There is is required and commented that it is no conflict with the restrictions in impracticable to include the notice in a Section 1610.6 Applicability section 504 on representation of aliens one or two page community-wide This section in the interim rule and prisoners because these restrictions solicitation letter. addressed two distinct situations. apply only to civil representation. Section 1610.5 is not intended to Paragraph (a) addressed the Except for the narrow category of implement the IRS instructions and applicability of this part to a recipient’s separately funded public defender guidelines concerning contributions to use of non-LSC funds for court programs or projects protected by charities; therefore, it does not appointments and for certain criminal section 1010(c), LSC recipients are incorporate the IRS reporting or other representation as permitted under prohibited from engaging in or using procedural requirements. Rather, it section 1010(c) of the LSC Act. The rest resources for any criminal simply recognizes that, because of the section dealt with transfers of a representation. recipients must provide recipient’s funds. The interim rule’s exception for acknowledgements for donations for For clarity, the final rule treats these criminal or related cases accepted by a $250 or more for IRS purposes, it does issues in two separate sections: the recipient or subrecipient pursuant to a 63752 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations court appointment has been retained as LSC funds, the conditions remain private attorneys and other entities paragraph (b) in the final rule. attached to the transferred funds; but when the sole purpose of the transfer is because they are not LSC funds, the to fund involvement in PAI activities. Section 1610.7 Transfers of Recipient other funds of the entity are not Such activities would include Funds affected. The Corporation requires that establishing judicare panels or referral A new § 1610.7 has been added to this the transferred non-LSC funds be services. This paragraph does not rule to address the applicability of the subject to the conditions, because authorize any involvement in any statutory conditions listed in § 1610.2 otherwise recipients would be able to restricted activities with the funds (a) and (b) when a recipient transfers its avoid the conditions on their non-LSC transferred. It is clear in this paragraph LSC or non-LSC funds to another funds by simply transferring the funds. and under part 1614 that no activities individual or entity (hereinafter, both Section 1610.7(c): Modifications to inconsistent with the conditions on the ‘‘individual’’ and ‘‘entity’’ are referred the requirements in paragraphs (a) and use of LSC funds may be attributed to to as ‘‘entity’’). This section replaces (b) of this section are set out in this a recipient’s PAI requirement under part § 1610.6 (b) and (c) of the interim rule. paragraph which provides that the 1614. The statutory conditions on a recipient’s § 1610.2(b) requirements regarding funds in the LSC Act and the priorities and timekeeping be modified Section 1610.8 Accounting Corporation’s current appropriations act for entities that receive transfers of This section has been renumbered do not address the effect of these recipients’ funds. The provisions on from the interim rule but has not been provisions on a transfer of a recipient’s priorities and timekeeping are otherwise revised. This section sets out funds to another entity. However, as a administrative requirements more the general accounting requirement for matter of policy, the Corporation has appropriately applicable to a recipient’s recipients for their non-LSC funds. historically applied such provisions to own use of its funds. The intent is to Currently, recipients are directed by the transfers of a recipient’s funds. See, for assure greater accountability for the accounting guidance issued by the example, 45 CFR parts 1627 and 1632 recipient’s use of its funds. The Corporation. and Program Letter dated December 11, administrative burden of extending 1995. This policy reflects the intent of these requirements to all funds of an List of subjects in 45 CFR Part 1610 the Corporation that transfers of funds entity to which a recipient’s funds are Grant programs—law, Legal services. not become a means to circumvent transferred would be significant. For reasons set forth in the preamble, statutory conditions on a recipient’s Accordingly, the final rule applies the LSC revises 45 CFR part 1610 to read as LSC and non-LSC funds. administrative requirements on follows: The interim rule continued this priorities and timekeeping only to the policy. Comments made it clear, funds transferred and only to the extent PART 1610ÐUSE OF NON±LSC however, that more specific guidance to ensure accountability for those funds. FUNDS was necessary. Other comments Thus, paragraph (c) requires that entities described situations where receiving a transfer of recipient funds Sec. Congressional intent would not be 1610.1 Purpose. must either use the funds consistent 1610.2 Definitions. served by strict application of this with the recipient’s priorities or 1610.3 Prohibition. policy. Accordingly, certain substantive establish their own priorities for the use 1610.4 Authorized use of other funds. changes have been made by the Board of those funds. In regard to timekeeping, 1610.5 Notification. in this final rule, as described below. the language tracks the statutory 1610.6 Applicability. Section 1610.7(a) (Transfers of LSC requirement so that such entities are 1610.7 Transfers of recipient funds. funds): Paragraph (a) provides that, for required to maintain records of time 1610.8 Accounting. transfers of LSC funds, the conditions in spent on each case or matter undertaken Authority: 42 U.S.C. 2996i; 110 Stat. 3009 § 1610.2 (a) and (b) of this part, except with the funds transferred. However, (1996); 110 Stat. 1321 (1996). as modified by paragraphs (c) and (d) of they are not required to keep time in § 1610.1 Purpose. this section, will apply to both the LSC accordance with the Corporation’s This part is designed to implement funds and the non-LSC funds of the timekeeping regulation, 45 CFR part statutory restrictions on the use of non- entity receiving those funds. This 1635. LSC funds by LSC recipients. requirement is based on the Section 1610.7(d) (Transfers for PAI Corporation’s interpretation of activities): Paragraph (d) responds to § 1610.2 Definitions. legislative intent that the statutory comments from the American Bar (a) Purpose prohibited by the LSC Act conditions on LSC funds attach to a Association and others that pointed out means any activity prohibited by the recipient’s non-LSC funds and that, in that many of the individual attorneys, following sections of the LSC Act and most situations, this should also be the private firms, and bar associations that those provisions of the Corporation’s case when LSC funds are transferred by provide representation or establish regulations that implement such a recipient. Otherwise, recipients would projects or programs for referral of cases sections of the Act: be able to avoid legislative intent by pursuant to a recipient’s private (1) Sections 1006(d)(3), 1006(d)(4), simply transferring their LSC funds to attorney involvement program (‘‘PAI’’) 1007(a)(6), and 1007(b)(4) of the LSC other persons or entities. would not be able to continue their Act and 45 CFR part 1608 of the LSC Section 1610.7(b) (Transfers of non- involvement in PAI if involvement Regulations (Political activities); LSC funds): This paragraph provides meant the application of all of the (2) Section 1007(a)(10) of the LSC Act that, for a transfer of non-LSC funds, the conditions listed in this part to their (Activities inconsistent with conditions in § 1610.2 (a) and (b) of this other funds. professional responsibilities); part, except as modified by paragraphs The Board determined that a strict (3) Section 1007(b)(1) of the LSC Act (c) and (d) of this section, will apply to application of the Corporation’s policy and 45 CFR part 1609 of the LSC the funds transferred but not to the to PAI activities would significantly regulations (Fee-generating cases); other funds of the entity receiving the undermine PAI efforts. Accordingly, (4) Section 1007(b)(2) of the LSC Act funds. When a recipient transfers its this paragraph provides an exception for and 45 CFR part 1613 of the LSC non-LSC funds to an entity that has no the other funds of bar associations, Regulations (Criminal proceedings); Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63753

(5) Section 1007(b)(3) of the LSC Act (d) Non-LSC funds means funds written notification of the prohibitions and 45 CFR part 1615 of the LSC derived from a source other than the and conditions which apply to the Regulations (Actions challenging Corporation. funds. criminal convictions); (e) Private funds means funds derived (b) A recipient is not required to (6) Section 1007(b)(7) of the LSC Act from an individual or entity other than provide such notification for receipt of and 45 CFR part 1612 of the LSC a governmental source or LSC. contributions of less than $250. Regulations (Organizing activities); (f) Public funds means non-LSC funds (7) Section 1007(b)(8) of the LSC Act derived from a Federal, State, or local § 1610.6 Applicability. (Abortions); government or instrumentality of a Notwithstanding § 1610.7(a), the (8) Section 1007(b)(9) of the LSC Act government. For purposes of this part, prohibitions referred to in (School desegregation); and IOLTA funds shall be treated in the §§ 1610.2(a)(4) (Criminal proceedings), (9) Section 1007(b)(10) of the LSC Act same manner as public funds. (a)(5) (Actions challenging criminal (Violations of Military Selective Service (g) Transfer means a transfer of a convictions), (b)(7) (Aliens) or (b)(11) Act or military desertion). recipient’s funds for the purpose of (Prisoner litigation) of this part will not (b) Activity prohibited by or conducting programmatic activities that apply to: inconsistent with Section 504 means any are normally conducted by the (a) A recipient’s or subrecipient’s activity prohibited by, or inconsistent recipient, such as the representation of separately funded public defender with the requirements of, the following eligible clients, or that provide direct program or project; or sections of 110 Stat. 1321 (1996) and support to the recipient’s legal (b) Criminal or related cases accepted those provisions of the Corporation’s assistance activities. by a recipient or subrecipient pursuant regulations that implement those (h) Tribal funds means funds received to a court appointment. sections: from an Indian tribe or from a private § 1610.7 Transfers of recipient funds. (1) Section 504(a)(1) and 45 CFR part nonprofit foundation or organization for the benefit of Indians or Indian tribes. (a) For a transfer of LSC funds, the 1632 of the LSC Regulations prohibitions and requirements referred (Redistricting); § 1610.3 Prohibition. to in this part, except as modified by (2) Sections 504(a) (2) through (6), as paragraphs (c) and (d) of this section, modified by Sections 504 (b) and (e), A recipient may not use non-LSC funds for any purpose prohibited by the will apply both to the funds transferred and 45 CFR part 1612 of the LSC and to the non-LSC funds of the person Regulations (Legislative and LSC Act or for any activity prohibited by or inconsistent with section 504, or entity. administrative advocacy); (b) For a transfer of non-LSC funds, (3) Section 504(a)(7) and 45 CFR part unless such use is authorized by §§ 1610.4, 1610.6 or 1610.7 of this part. the prohibitions and requirements 1617 of the LSC Regulations (Class referred to in this part, except as actions); § 1610.4 Authorized use of other funds. modified by paragraphs (c) and (d) of (4) Section 504(a)(8) and 45 CFR part (a) A recipient may receive tribal this section, will apply to the funds 1636 of the LSC Regulations (Statement funds and expend them in accordance transferred, but will not apply to the of facts and client identification); with the specific purposes for which the other non-LSC funds of the person or (5) Section 504(a)(9) and 45 CFR part tribal funds were provided. entity. 1620 of the LSC Regulations (Priorities); (b) A recipient may receive public or (c)(1) In regard to the requirement in (6) Section 504(a)(10) and 45 CFR part IOLTA funds and use them in § 1610.2(b)(5) on priorities, persons or 1635 of the LSC Regulations accordance with the specific purposes entities receiving a transfer of LSC or (Timekeeping); for which they were provided, if the non-LSC funds shall either: (7) Section 504(a)(11) and 45 CFR part funds are not used for any activity (i) Use the funds transferred 1626 of the LSC Regulations (Aliens); prohibited by or inconsistent with consistent with the recipient’s priorities; (8) Section 504(a)(12) and 45 CFR part section 504. or 1612 of the LSC Regulations (Public (c) A recipient may receive private (ii) Establish their own priorities for policy training); funds and use them in accordance with the use of the funds transferred (9) Section 504(a)(13) and 45 CFR part the purposes for which they were consistent with 45 CFR part 1620; 1642 of the LSC Regulations (Attorneys’ provided, provided that the funds are (2) In regard to the requirement in fees); not used for any activity prohibited by § 1610.2(b)(6) on timekeeping, persons (10) Section 504(a)(14) (Abortion the LSC Act or prohibited or or entities receiving a transfer of LSC or litigation); inconsistent with section 504. non-LSC funds are required to maintain (11) Section 504(a)(15) and 45 CFR (d) A recipient may use non-LSC records of time spent on each case or part 1637 of the LSC Regulations funds to provide legal assistance to an matter undertaken with the funds (Prisoner litigation); individual who is not financially transferred. (12) Section 504(a)(16), as modified eligible for services under part 1611 of (d) For a transfer of LSC or non-LSC by Section 504(e), and 45 CFR part 1639 this chapter, provided that the funds are funds to bar associations, pro bono of the LSC Regulations (Welfare reform); used for the specific purposes for which programs, private attorneys or law firms, (13) Section 504(a)(17) and 45 CFR those funds were provided and are not or other entities for the sole purpose of part 1633 of the LSC Regulations (Drug- used for any activity prohibited by the funding private attorney involvement related evictions); and LSC Act or prohibited by or inconsistent activities (PAI) pursuant to 45 CFR part (14) Section 504(a)(18) and 45 CFR with section 504. 1614, the prohibitions or requirements part 1638 of the LSC Regulations (In- of this part shall apply only to the funds person solicitation). § 1610.5 Notification. transferred. (c) IOLTA funds means funds derived (a) Except as provided in paragraph from programs established by State (b) of this section, no recipient may § 1610.8 Accounting. court rules or legislation that collect and accept funds from any source other than Funds received by a recipient from a distribute interest on lawyers’ trust the Corporation, unless the recipient source other than the Corporation shall accounts. provides to the source of the funds be accounted for as separate and distinct 63754 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations receipts and disbursements in a manner rule. Accordingly, the preamble and text issued. The Board did not take this directed by the Corporation. of this rule continue to refer to the approach. Participation in adversarial Dated: November 26, 1996. appropriate section number of the FY actions, even after entry of an order, 1996 appropriations act. constitutes active participation in a Victor M. Fortuno, The interim rule was intended to class action, and such involvement is General Counsel. implement a clear prohibition in the not permitted under the law. The use of [FR Doc. 96–30619 Filed 11–29–96; 8:45 am] Corporation’s FY 1996 appropriations the term ‘‘non-adversarial’’ was BILLING CODE 7050±01±P act on any participation in class actions intentional. The Corporation meant to by LSC recipients. Other than providing prohibit any adversarial action after a transition period for programs to relief is granted, and the term is retained 45 CFR Part 1617 withdraw from pending cases, the in this final rule. Furthermore, the term appropriations act provided no Class Actions ‘‘monitoring’’ is replaced with exceptions and allowed for no ‘‘activities’’ because its use seemed to AGENCY: Legal Services Corporation. Corporation waivers to the prohibition. imply a more active role for recipients ACTION: Final rule. The legislative history of this provision than was intended. indicates an intent that legal services Comments further indicated that the SUMMARY: This final rule revises the programs should focus their resources rule should be more explicit about the Legal Services Corporation’s on representation of individual poor types of activities the Corporation (‘‘Corporation’’ or ‘‘LSC’’) interim clients and not be involved in any class considers to be adversarial and non- regulation concerning class actions. The actions. Accordingly, the interim rule adversarial. Accordingly, this final rule revisions are intended to implement a contained a strict prohibition on adds language to clarify what would be restriction contained in the participation in class actions with no considered to be non-adversarial. Non- Corporation’s Fiscal Year (‘‘FY’’) 1996 exceptions or waivers. This final rule adversarial activities would include appropriations act which is currently continues the interim rule’s strict efforts to remain informed about the incorporated by reference in the prohibition but better clarifies those terms of an order granting relief as well Corporation’s FY 1997 appropriations activities that constitute participation in as efforts to explain, clarify, educate or act. The restriction prohibits the class actions. give advice about an order granting involvement of LSC recipients in class A section-by-section discussion of relief. actions. this final rule is provided below. One comment questioned the use of the term ‘‘legal assistance’’ in the DATES: This final rule is effective on Section 1617.1 Purpose January 1, 1997. definition of ‘‘initiating or participating The purpose of this rule is to prohibit in any class action.’’ Because the term FOR FURTHER INFORMATION CONTACT: involvement by LSC recipients in class as defined in 45 CFR part 1600 has a Victor M. Fortuno, General Counsel, actions. different focus than is intended in this (202) 336–8910. definition, the Board changed ‘‘legal Section 1617.2 Definitions SUPPLEMENTARY INFORMATION: On May assistance’’ to ‘‘representation.’’ 19, 1996, the Operations and The definition of ‘‘class action’’ in the Other comments suggested deleting Regulations Committee (‘‘Committee’’) interim rule deferred to widely accepted the language in the definition that of the LSC Board of Directors’ (‘‘Board’’) Federal and local court rules and prohibits program attorneys from requested LSC staff to prepare an statutory definitions. Thus, a class assisting their clients to ‘‘withdraw interim rule to implement § 504(a)(7), a action for the purposes of this part was from’’ or ‘‘opt out of’’ a class action. The restriction in the Corporation’s FY 1996 defined as a class action pursuant to comments stated that the inclusion of appropriations act, Pub. L. 104–134, 110 Rule 23 of the Federal Rules of Civil the language in the definition goes Stat. 1321 (1996), which prohibited Procedure or the comparable State beyond the intent of the statutory involvement of LSC recipients in class statute or rule of civil procedure restriction and has the opposite effect of actions. The Committee held public governing the action in the court where ‘‘participating’’ in a class action. hearings on staff proposals on July 8 and it is filed. No comments challenged the Arguing that representation to withdraw 19, and the Board adopted an interim definition, and no changes have been from or opt out of a class action may be rule on July 20 for publication in the made to the definition in this final rule. essential to allow individual Federal Register. Although the interim The definition of ‘‘initiating or representation, the comments urged the rule was effective upon publication, see participating in any class action’’ in the Corporation to change the rule to allow 61 FR 41963 (Aug. 13, 1996), the interim rule was intended to clarify that such representation. Corporation also solicited comments on any involvement in a class action is The Board agreed that efforts to the rule for review and consideration by prohibited prior to an order granting withdraw from a class action are the Committee and Board. relief. Public comments on part 1617 consistent with the Congressional intent The Corporation received 7 comments generally asked for more clarity as to the that LSC recipients provide on the interim rule. The Committee held scope of the definition. In general, the representation to individual clients and public hearings on the rule on Board decided that it should state in the should not be viewed as efforts to September 29, 1996, and made several rule that all participation, whether participate or to be included in a class recommendations for revisions to the before or after entry of an order, is action. The Board revised paragraph (b) Board. The Board adopted this final rule prohibited; and the final rule reflects of the definition of ‘‘initiating or on September 30, 1996. that change. In addition, the Board participating in any class action’’ to The Corporation’s FY 1997 decided to address some of the specific clarify that the definition does not appropriations act became effective on issues addressed by the comments. include the representation of an October 1, 1996, see Pub. L. 104–208, One comment urged the deletion of individual client seeking to withdraw 110 Stat. 3009. It incorporated by ‘‘non-adversarial’’ before ‘‘monitoring,’’ from or opt out of a class by deleting reference the § 504 condition on LSC stating that any action, even an reference to withdrawing or opting out grants included in the FY 1996 adversarial action, should be allowed from the definition. This change only appropriations act implemented by this once an order granting relief has been authorizes actions by a recipient Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63755 necessary to ensure that its client is not Section 1617.3 Prohibition Dated: November 26, 1996. included in the class or that any class This section prohibits LSC recipients Victor M. Fortuno, order would not apply to the recipient’s from initiating or participating in any General Counsel. client. Any other activity in the case, class action. [FR Doc. 96–30620 Filed 11–29–96; 8:45 am] however, is not permitted. BILLING CODE 7050±01±P In summary, the final rule clarifies the Section 1617.4 Recipient Policies and definition of ‘‘initiating or participating Procedures in any class action’’ as extending to all This section requires recipients to 45 CFR Part 1632 types of involvement at all stages of a adopt written policies and procedures to class action. Recipients may not initiate guide the recipient’s staff in ensuring Redistricting a class action or participate in one compliance with this rule. AGENCY: Legal Services Corporation. initiated by others, either at the trial or List of Subjects in 45 CFR Part 1617 ACTION: Final rule. appellate level, nor may they continue involvement in a case that is later Grant programs—law, Legal services. SUMMARY: This final rule revises the certified or otherwise determined by the For reasons set out in the preamble, Legal Services Corporation’s (‘‘LSC’’ or court to be a class action. However, in LSC revises 45 CFR part 1617 to read as ‘‘Corporation’’) regulation on response to comments on a situation follows: redistricting to implement a new where the recipient’s client does not file restriction contained in the for or move for certification of a class PART 1617ÐCLASS ACTIONS Corporation’s Fiscal Year (‘‘FY’’) 1997 action, the Board requested that the Sec. appropriations act, which extends the following example be included in this 1617.1 Purpose. rule’s prohibition to all the funds of commentary regarding the definition of 1617.2 Definitions. recipients. ‘‘initiating or participating in a class 1617.3 Prohibition. DATES: This final rule is effective on action’’: In a case where the recipient 1617.4 Recipient policies and procedures. January 1, 1997. files or otherwise initiates action to have Authority: 29 U.S.C. 2996e(d)(5); 110 Stat. FOR FURTHER INFORMATION CONTACT: the case certified as a class action, 3009 (1996); 110 Stat. 1321 (1996). Victor M. Fortuno, General Counsel, at participation in the case is prohibited § 1617.1 Purpose. (202) 336–8910. from the point that the recipient takes This rule is intended to ensure that SUPPLEMENTARY INFORMATION: The prior such actions. On the other hand, if the LSC recipients do not initiate or LSC regulation on redistricting that is recipient is representing a client in a participate in class actions. revised by this final rule allowed pending action that was not filed as a recipients to use some non-LSC funds class action, and another party moves to § 1617.2 Definitions. on redistricting activities. New have the case certified as a class action, (a) Class action means a lawsuit filed legislation, enacted as Section 504(a)(1) the recipient will not be deemed to be as, or otherwise declared by the court of the Corporation’s FY 1996 participating in a class action until the having jurisdiction over the case to be, appropriations act, Pub. L. 104–134, 110 court certifies it as such. Finally, a class action pursuant to Rule 23 of the Stat. 1321 (1996), went further than the recipients may not act as amicus curiae Federal Rules of Civil Procedure or the Corporation’s prior rule and prohibited or co-counsel in a class action or comparable State statute or rule of civil the Corporation from providing intervene in a class action on behalf of procedure applicable in the court in financial assistance to any person or individual clients who seek to intervene which the action is filed. entity (‘‘recipient’’) that makes available in, modify, or challenge the adequacy of (b)(1) Initiating or participating in any any funds, personnel or equipment for the representation of a class. Finally, class action means any involvement at use in advocating or opposing any plan, recipients may not represent defendants any stage of a class action prior to or proposal or litigation that is intended to in a class action. after an order granting relief. or has the effect of altering, revising or Certain situations are not within the ‘‘Involvement’’ includes acting as reapportioning a legislative, judicial or definition and are thus not prohibited amicus curiae, co-counsel or otherwise elective district at any level of by this rule. For example, recipients providing representation relating to a government, including influencing the may advise clients about the pendency class action. timing or manner of the taking of a of a class action or its effect on the (2) Initiating or participating in any census. This legislative restriction client and what the client would need class action does not include prohibited recipient involvement in to do to benefit from the case. representation of an individual client redistricting activities, regardless of the Recipients may represent an eligible seeking to withdraw from or opt out of source of funds used for such activities. client in withdrawing from or opting out a class or obtain the benefit of relief The Corporation’s FY 1997 of a class action. Furthermore, the ordered by the court, or non-adversarial appropriations act continues this definition of a class action would not activities, including efforts to remain restriction, Pub. L. 104–208, 110 Stat. include a mandamus action or informed about, or to explain, clarify, 3009, by incorporating by reference the injunctive or declaratory relief actions, educate or advise others about the terms restrictions in the FY 1996 unless such actions are filed or certified of an order granting relief. appropriations act. as class actions. § 1617.3 Prohibition. On May 19, 1996, the Operations and Recipients may also represent an Recipients are prohibited from Regulations Committee (‘‘Committee’’) individual client seeking the benefit of initiating or participating in any class of the Corporation’s Board of Directors the order, provided that any such action. (‘‘Board’’) requested LSC staff to prepare involvement is only on behalf of an an interim rule to implement the new individual client and does not involve § 1617.4 Recipient policies and statutory restriction on redistricting representation of an entire class and procedures. activities. The Committee held hearings may represent an individual client Each recipient shall adopt written on staff proposals on July 8 and 19, and seeking to withdraw from or opt out of policies and procedures to guide its staff the Board adopted an interim rule on a class. in complying with this part. July 20 for publication in the Federal 63756 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

Register. The Committee recommended Miscellaneous Changes proposal, or representing any party, or and the Board agreed to publish the rule All provisions of the prior rule’s participating in any other way in as an interim rule. However, the § 1632.4 on permissible activity have litigation, related to redistricting. Corporation also solicited public been deleted. Paragraph (a) of the prior (b) This part does not prohibit any comment on the rule for review and rule, on litigation brought under the litigation brought by a recipient under consideration by the Committee and Voting Rights Act, has been moved and the Voting Rights Act of 1965, as Board. is now included in § 1632.3 of this final amended, 42 U.S.C. 1971 et seq., One comment was received by the rule. Paragraph (b) of the prior rule was provided such litigation does not Corporation on this rule which deleted because it was contrary to involve redistricting. expressed approval of the interim rule current law as it would have allowed a § 1632.4 Recipient policies. recipient to use some non-LSC funds for and made no recommendations for Each recipient shall adopt written redistricting activities. Such use of non- changes. The Committee held public policies to implement the requirements LSC funds is now prohibited by this hearings on the interim rule on of this part. September 29, 1996, and made a final rule as required by LSC’s recommendation to the Board on appropriations act. Finally, paragraphs Dated: November 26, 1996. September 30, 1996, to adopt the (c) and (d) in the prior rule have been Victor M. Fortuno, interim rule as a final rule with no deleted, because they simply restate law General Counsel. revisions. The Board adopted the rule as that is already reflected in other [FR Doc. 96–30621 Filed 11–29–96; 8:45 am] recommended. regulations. BILLING CODE 7050±01±P A section-by-section discussion of the List of Subjects in 45 CFR Part 1632 final rule is provided below. See note 1. Grant programs—law; Legal services. 45 CFR Part 1633 Section 1632.1 Purpose For reasons set forth in the preamble, 45 CFR part 1632 is revised to read as Restriction on Representation in The purpose section implements the follows. Certain Eviction Proceedings new statutory restrictions on involvement of LSC recipients in PART 1632ÐREDISTRICTING AGENCY: Legal Services Corporation. redistricting activities. The prior rule 1 ACTION: Final rule. was not based on any express statutory Sec. restriction, but on policies adopted by a 1632.1 Purpose. SUMMARY: This final rule revises the 1632.2 Definitions. former board of directors. Legal Services Corporation’s (‘‘LSC’’ or 1632.3 Prohibition. ‘‘Corporation’’) interim regulation that Section 1632.2 Definitions 1632.4 Recipient policies. prohibits the representation of persons Authority: 42 U.S.C. 2996e(b)(1)(A); in public housing eviction proceedings Section 1632.2 is amended by revising 2996f(a)(2)(C); 2996f(a)(3); 2996(g)(e); 110 when such persons have been charged the definition of ‘‘redistricting’’ and Stat. 3009; 110 Stat. 1321(1996). with or convicted of engaging in certain adding paragraph designations to the § 1632.1 Purpose. illegal drug activity. The prohibition in definitions. The revision to This part is intended to ensure that the prior rule applied only to LSC ‘‘redistricting’’ is not substantive and is funds. This rule is revised to implement only intended to track more closely the recipients do not engage in redistricting activities. new legislation that extends the statutory restriction contained in the prohibition to a recipient’s non-LSC Corporation’s appropriations act. § 1632.2 Definitions. funds. Revisions are also made to Section 1632.3 Prohibition (a) Advocating or opposing any plan respond to comments received by the means any effort, whether by request or Corporation. The prohibition in § 1632.4(a) of the otherwise, even if of a neutral nature, to DATES: This final rule is effective on prior rule has been revised and revise a legislative, judicial, or elective January 1, 1997. renumbered as § 1632.3(a) to track the district at any level of government. FOR FURTHER INFORMATION CONTACT: (b) Recipient means any grantee or statutory restriction in the Corporation’s Victor M. Fortuno, General Counsel, at contractor receiving funds made appropriations act. Also, some language (202) 336–8910. which simply restates the definition of available by the Corporation under redistricting has been deleted, since its sections 1006(a)(1) or 1006(a)(3) of the SUPPLEMENTARY INFORMATION: The Legal repetition was confusing and LSC Act. For the purposes of this part, Services Corporation’s regulation, 45 unnecessary. Paragraph (b) clarifies that recipient includes subrecipient and CFR Part 1633, prohibits recipients from not all litigation brought under the employees of recipients and representing persons in public housing Voting Rights Act of 1965 is prohibited. subrecipients. eviction proceedings when such persons Only litigation which involves (c) Redistricting means any effort, have been charged with or convicted of redistricting activities as defined by this directly or indirectly, that is intended to engaging in certain illegal drug activity. rule is prohibited. or would have the effect of altering, The prior rule applied the prohibition revising, or reapportioning a legislative, only to a recipient’s LSC funds. The Section 1632.4 Recipient Policies judicial, or elective district at any level interim rule extended the prohibition to of government, including influencing a recipient’s non-LSC funds as required A new § 1632.4 requires recipients to by § 504(a)(17) of the Corporation’s adopt written policies to implement the the timing or manner of the taking of a census. Fiscal Year (‘‘FY’’) 1996 appropriations requirements of this part. act, Pub. L. 104–134, 110 Stat. 1321 § 1632.3 Prohibition. (1996). The Corporation’s FY 1997 1 References to the ‘‘prior rule’’ refer to the rule (a) Neither the Corporation nor any appropriations act, Pub. L. 104–208, 110 prior to the interim rule. Because the interim rule and final rule are the same, explanations of the recipient shall make available any Stat. 3009 (1996), retains the restriction revisions here are essentially the same as in the funds, personnel, or equipment for use by incorporating Section 504 of the FY interim rule. in advocating or opposing any plan or 1996 appropriations act by reference. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63757

Background representation applies only when a with certain drug activities, does not In order to implement the new formal charge of illegal drug activity, require the Corporation to adopt the statutory restriction in its FY 1996 whether by information or indictment or HUD policy. While the HUD policy may appropriations act, on May 19, 1996, the their equivalent, has been made by the require housing authorities to begin Operations and Regulations Committee appropriate authority and is pending eviction proceedings based on the against a person, or when there has been activity of other family members in the (‘‘Committee’’) of the LSC Board of a conviction. Thus, the prohibition on drug abuser’s household, no legislation Directors (‘‘Board’’) requested LSC staff representation of a person does not prohibits legal services attorneys from to prepare an interim rule. The apply when a charge has been dismissed representing such family members Committee held hearings on staff or the person has been acquitted of the regarding their eviction. proposals on July 9 and 19, and the illegal drug activity. See 63 FR 14250– The Housing Authority also Board adopted an interim rule on July 14251 (April 1, 1996). commented that the underlying 20 for publication in the Federal legislation for this rule is deficient in Register. However, the Corporation also Section 1633.3 Prohibition that it does not apply the restriction on solicited public comment on the interim Except for the change which extended representation to a person who has been rule for review and consideration by the the prohibition in this section to a charged with the manufacture and use Committee and Board. recipient’s non-LSC funds, the interim of a controlled substance. The Nine comments were received by the rule did not alter the prior rule. In this prohibition in the interim rule tracked Corporation, and the Committee held final rule, however, the Board has made the statutory language and only public hearings on Sept. 29, 1996, to further changes in response to the prohibited representation of persons review the comments and consider comments received as a result of the who have been charged with the illegal revisions to the interim rule. The Corporation’s request for comments on sale or distribution of a controlled Committee made several conforming the rule to the new HUD substance. recommendations to the Board for policy guidelines on public housing The Board agreed to revise the final revisions to the rule based largely on the evictions. rule to add other drug activities that comments. The Board adopted the The Corporation received 8 comments would pose a danger to the people in Committee’s recommendations as a final opposed to extending the rule’s the housing communities. The Board rule on September 30, 1996. prohibition to incorporate the HUD determined the changes to be consistent Generally, the revisions to this final policies. On the other hand, the with the Congressional intent to address rule, as did the interim rule, implement Corporation also received one comment the evil of drug dealing in public § 504(a)(17) of Public Law 104–134, from the Public Housing Authorities housing projects. Thus, the rule now which prohibits the Corporation from Directors Association (‘‘Housing prohibits a recipient from defending any providing funds to recipients that Association’’), which represents person in an eviction proceeding if that defend persons in public housing approximately 1700 public housing person ‘‘has been charged with or has eviction proceedings who have been authorities, suggesting several changes been convicted of the illegal sale, charged with certain illegal drug to conform to the HUD policy. distribution or manufacture of a activities, regardless of the source of the One element of the HUD policy controlled substance, or possession of a funds used to pay for the representation. requires housing authorities to include controlled substance with the intent to In addition, revisions have been made in each tenant’s lease a provision sell or distribute.’’ in response to comments requested by holding the leaseholder responsible for Another issue raised by the Housing the Corporation on policy guidelines the actions of all members of the Association was whether part 1633 is announced by the United States household and guests. The Housing intended to give legal services programs Department of Housing and Urban Association suggested that, because the authority to determine whether, in Development (‘‘HUD’’) in March 1996, housing authorities are now required by a particular case, the drug activity after the LSC Board initially adopted law to initiate eviction proceedings constitutes a threat to the health and part 1633 on February 24, 1996. against a household ‘‘even if the illegal safety of the housing project’s tenants. A section-by-section discussion is activity was not undertaken by the head The Board agreed that the rule already provided below. of the household,’’ the Corporation clearly assumes that such authority lies should adopt this policy in part 1633. with the Housing Authorities. Section 1633.1 Purpose Comments opposing the inclusion of Recipients are prohibited from This section is revised to reflect new this policy in part 1633 stated that representing a client when a Housing law that applies the prohibition in this innocent tenants should not be denied Authority has brought an eviction rule to all of a recipient’s funds. The representation in eviction proceedings proceeding on the basis that the drug final rule retains the language of the because of the alleged actions of another activity threatens the health and safety interim rule. family member. These comments of the other tenants. Since it is the explained that most of these innocent Housing Authority that brings the Section 1633.2 Definitions tenants are poor and legal services eviction proceeding and the proceeding The definition of ‘‘charged with’’ has programs may be their only source of must be based on the health and safety been revised to better conform with the representation. According to one factor, then it is the decision of the intent of the rule. While the interim rule comment, the innocent family members Housing Authority that is operative for left the language of this section often need legal protection from the the purposes of this rule. Accordingly, unchanged from the prior rule, the drug abuser and to single them out for no changes were made in the final rule Board revised the definition of ‘‘charged denial of legal assistance would ‘‘stand to address this concern. with’’ in this final rule to better conform justice on its head.’’ The Housing Association also with the overall intent of the rule. The The LSC Board agreed that the recommended that more specific revised definition clarifies that a person prohibition should not be extended to language be used in the rule stating that must be charged by a governmental family members. Section 504(a)(17), eviction proceedings contemplated by entity having the authority to make such which expressly limits the prohibition this rule may be initiated even when the charges. The prohibition on to the person who has been charged illegal drug activity takes place outside 63758 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations of the housing premises. The Board defending persons charged with or SUMMARY: This document contains determined that there is no need to convicted of illegal drug activities. corrections to the final rules adopted in address this issue in the rule. There is the Report and Order regulations, which nothing in the rule that limits the § 1633.2 Definitions. were published on August 7, 1996 (61 prohibition to drug activity on the (a) Controlled substance has the FR 41006). The rules relate to the housing premises. It is the decision of meaning given that term in section 102 permissible exposure limits from FCC- the Housing Authority whether to allege of the Controlled Substances Act (21 regulated transmitters as contained in that illegal drug activity threatens the U.S.C. 802); § 1.1307. health or safety of other tenants, (b) Public housing project and public EFFECTIVE DATE: August 6, 1996. regardless of where it has taken place. housing agency have the meanings given those terms in section 3 of the When an eviction proceeding is FOR FURTHER INFORMATION CONTACT: initiated alleging such a threat and the United States Housing Act of 1937 (42 U.S.C. 1437a); David Sylvar, Office of Engineering and other terms of the rule are met, legal (c) Charged with means that a person Technology, (202) 418–2424. services programs may not provide is subject to a pending criminal SUPPLEMENTARY INFORMATION: representation to the persons charged proceeding instituted by a governmental with the violations. entity with authority to initiate such Background Finally, the Housing Association proceeding against that person for opposed the provision in the interim engaging in illegal drug activity. The final rules that are the subject of rule that representation is prohibited if these corrections, supersede § 1.1307 ‘‘the person has been charged with or, § 1633.3 Prohibition. with respect to evaluating the within one year, prior to the date when Recipients are prohibited from environmental effect of radio frequency services are requested from a recipient, defending any person in a proceeding to radiation. In addition, § 1.1301, has been convicted of the illegal sale or evict that person from a public housing § 2.1091, and § 2.1093 have been added distribution of a controlled substance.’’ project if: to further define and clarify the FCC’s [emphasis added]. According to the (a) The person has been charged with requirements under the National Housing Association, this one-year or has been convicted of the illegal sale, Environmental Policy Act of 1969. provision exceeds statutory authority distribution, or manufacture of a Need for Correction and ‘‘does not adequately address the controlled substance, or possession of a wide variety of circumstances that are controlled substance with the intent to As published, the final rules contain associated with illegal drug activities.’’ sell or distribute; and errors which may prove to be (b) The eviction proceeding is brought The Board agreed to delete the one-year misleading and are in need of by a public housing agency on the basis provision on the grounds that it is clarification. unnecessary, because a Housing that the illegal drug activity for which Authority must allege and presumably the person has been charged or for Correction of Publication which the person has been convicted demonstrate in court that drug related Accordingly, the publication on activities are a current threat to the threatens the health or safety of other tenants residing in the public housing August 7, 1996 the final rules in ET health and safety of the other tenants. Docket 93–62, which were the subject of The Board did make a revision to project or employees of the public housing agency. FR Doc. 96–20082, is corrected as § 1633.3(b) of the final rule, however, to follows: clarify that the illegal drug activity for § 1633.4 Recipient policies, procedures which the person has been charged and recordkeeping. 1. Page 41011, first column, second paragraph, the third sentence is revised currently threatens the health and safety Each recipient shall adopt written to read as follows: of other tenants. policies and procedures to guide its staff List of Subjects in 45 CFR Part 1633 in complying with this part and shall ‘‘Of these 295 owners, 158 or 54 maintain records sufficient to document percent had annual revenues of 10.5 Grant programs-law, Legal services. the recipient’s compliance with this million or less.’’ For reasons set forth in the preamble, part. 2. Page 41011, first column, third 45 CFR part 1633 is revised to read as Dated: November 26, 1996. paragraph, the first sentence is revised follows: Victor M. Fortuno, to read as follows: General Counsel. ‘‘In summary, based on the foregoing PART 1633ÐRESTRICTION ON extreme analysis using census data, we REPRESENTATION IN CERTAIN [FR Doc. 96–30622 Filed 11–29–96; 8:45 am] estimate that our rules will apply to as EVICTION PROCEEDINGS BILLING CODE 7050±01±P many as 1,155 commercial and non- Sec. commercial television stations (78 1633.1 Purpose. FEDERAL COMMUNICATIONS percent of all stations) that could be 1633.2 Definitions. COMMISSION classified as small entities.’’ 1633.3 Prohibition. 3. Page 41011, second column, first 1633.4 Recipient policies, procedures and 47 CFR Part 1, 2, 15, 24 and 97 recordkeeping. paragraph, the second sentence is Authority: 42 U.S.C. 2996e(a), [ET Docket No. 93±62] revised to read as follows: 2996e(b)(1)(A), 2996f(a)(2)(C), 2996f(a)(3), ‘‘That represents approximately 32 Guidelines for Evaluating the 2996g(e); 110 Stat. 3009; 110 Stat. 1321 percent of commercial radio stations.’’ (1996). Environmental Effects of Radiofrequency Radiation Federal Communications Commission. § 1633.1 Purpose. William F. Caton, AGENCY: Federal Communications Acting Secretary. This part is designed to ensure that in Commission. certain public housing eviction [FR Doc. 96–30662 Filed 11–29–96; 8:45 am] ACTION: Correction to final rule. proceedings recipients refrain from BILLING CODE 6712±01±M Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63759

47 CFR Part 73 Two Rivers, and by removing Channel FOR FURTHER INFORMATION CONTACT: Sue 272A at Two Rivers and adding Channel Salveson, 907–586–7228. [MM Docket No. 96±88; RM±8760] 272A at Manitowoc. SUPPLEMENTARY INFORMATION: The Radio Broadcasting Services; Two Federal Communications Commission. domestic groundfish fisheries in the Rivers and Manitowoc, Wisconsin John A. Karousos, exclusive economic zone of the Gulf of Alaska (GOA) and the Bering Sea and AGENCY: Federal Communications Chief, Allocations Branch, Policy and Rules Division, Mass Media Bureau. Aleutian Islands management area Commission. [FR Doc. 96–30586 Filed 11–29–96; 8:45 am] (BSAI) are managed by NMFS in ACTION: Final rule. accordance with the Fishery BILLING CODE 6712±01±P Management Plan for Groundfish of the SUMMARY: This document allots Channel Gulf of Alaska and the Fishery 255A to Two Rivers, Wisconsin, as that Management Plan for the Groundfish community’s first local service in DEPARTMENT OF COMMERCE Fishery of the Bering Sea and Aleutian response to a petition filed by Lyle Islands Area (FMPs). The FMPs were Robert Evans d/b/a High Mark Radio National Oceanic and Atmospheric prepared by the North Pacific Fishery Company. See 61 FR 18539, April 26, Administration Management Council under the 1996. The coordinates for Channel 255A Magnuson-Stevens Fishery are 44–03–00 and 87–39–42. There is a 50 CFR Part 679 Conservation and Management Act site restriction 13.5 kilometers (8.4 [Docket No. 950815208±6299±02; I.D. (Magnuson-Stevens Act). The FMPs are miles) southwest of the community. We 080295B] implemented by regulations that appear shall also take this opportunity to make at 50 CFR part 679. an editorial amendment to the FM Table Fisheries of the Exclusive Economic Timely communication between the by deleting Channel 272A at Two Zone Off Alaska; Groundfish of the fishing industry and NMFS is a critical Rivers, Wisconsin, and adding Channel Bering Sea and Aleutian Islands Area; element of successful fisheries 272A at Manitowoc, Wisconsin. With Electronic Reporting management. Observers submit reports this action, this proceeding is AGENCY: National Marine Fisheries of catch to the NMFS Observer Program terminated. Service (NMFS), National Oceanic and Office. These reports are crucial to DATES: Effective December 30, 1996. The Atmospheric Administration (NOAA), effective inseason management of the window period for filing applications Commerce. groundfish quotas and prohibited for Channel 255A at Two Rivers, ACTION: Final rule. species bycatch allowances. At present, Wisconsin, will open on December 30, most observer reports are submitted by 1996, and close on January 30, 1997. SUMMARY: NMFS is implementing fax and often must be resubmitted to FOR FURTHER INFORMATION CONTACT: regulations that will require all catcher/ obtain a readable copy. Catch data from Kathleen Scheuerle, Mass Media processor vessels, mothership processor these reports must then be verified and Bureau, (202) 418–2180. vessels, and shoreside processors keypunched into an inseason SUPPLEMENTARY INFORMATION: This is a subject to observer coverage to have management database. As a result, summary of the Commission’s Report electronic communication equipment, transmission and processing of faxed and Order, MM Docket No. 96–88, hardware, and software necessary for reports is costly, time-consuming, and adopted November 8, 1996, and released electronic transmission of observer data. can be inefficient for both NMFS and November 15, 1996. The full text of this These requirements do not apply to the industry. Because of the method by Commission decision is available for processors that do not process which reports are currently submitted inspection and copying during normal groundfish. The equipment is intended and the burden of data entry, business hours in the Commission’s for use by observers. Electronic information available for management is Reference Center (Room 239), 1919 M submission of observer data is necessary often not current with the real-time Street, NW, Washington, D.C. The to reduce both the time and expense of status of the fishery. Electronic complete text of this decision may also collecting fishery information by communication of observer reports be purchased from the Commission’s providing real-time data and to improve would greatly improve management copy contractors, International the overall efficiency of fisheries efficiency and reduce the costs Transcription Services, Inc., 2100 M management. The action is intended to associated with report submission and Street, N.W., Suite 140, Washington, further the objectives of the fishery processing. Implementation of D.C. 20037, (202) 857–3800. management plans for the groundfish requirements for hardware and software fisheries off Alaska. List of Subjects in 47 CFR Part 73 that would support electronic EFFECTIVE DATE: July 1, 1997. transmission of inseason data in a more Radio broadcasting. ADDRESSES: Individual copies of the timely and efficient way would benefit Part 73 of title 47 of the Code of environmental assessment/regulatory both NMFS and the industry. Federal Regulations is amended as impact review (EA/RIR) prepared for This rule requires each processor follows: this action may be obtained from vessel subject to observer coverage Fisheries Management Division, Alaska under regulations at § 679.32(c) and PART 73Ð[AMENDED] Region, NMFS, P.O. Box 21668, Juneau, § 679.50 to have the following 1. The authority citation for Part 73 AK 99802, Attn: Lori Gravel. Send equipment: A personal computer (PC) in continues to read as follows: comments regarding burden estimates or working condition that contains a full Authority: Secs. 303, 48 Stat., as amended, any other aspect of the data 486DX 66Mhz or greater capacity 1082; 47 U.S.C. 154, as amended. requirements, including suggestions for processing chip, at least 16 megabytes of reducing the burdens to NMFS and to RAM, at least 75 megabytes of free hard § 73.202 [Amended] the Office of Information and Regulatory disk storage, DOS version 6.0 or a 2. Section 73.202(b), the Table of FM Affairs, Office of Management and successor version of the DOS operating Allotments under Wisconsin, is Budget (OMB), Washington, D.C. 20503, system, Windows 3.1, 3.11, or amended by adding Channel 255A at Attn: NOAA Desk Officer. Windows95 (or equivalent and 63760 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations compatible software approved by of comments was received and is Response to Comments NMFS), a 3.5-inch floppy disk drive, a summarized and responded to below in Comment: The requirement for 28.8kbs Hayes-compatible modem the ‘‘Response to Comments’’ section. electronic reporting will force the vessel (except with the Standard C units) and NMFS has made the following owners to spend in excess of $30,000 to a mouse. For vessel processors, the changes to the final rule from the purchase and install the satellite system above-mentioned equipment must be proposed rule: NMFS has modified the for the sole purpose of submitting connected to either an INMARSAT final rule to include performance based observer data to NMFS. The cost to Standard C unit or a communication standards for electronic communication install the system is significant and will device that provides a point-to-point instead of requiring specific satellite cause economic hardship for the vessel. modem connection to the NMFS host communication units. This change is in NMFS is urged to reconsider this computer and supports one or more of response to general industry comments requirement for 1995. the following protocols: received at a meeting on August 8, 1996. Response: In response to industry ITU V.22, ITU V.22bis, ITU V.32, ITU The proposed rule required INMARSAT comments, NMFS has modified the final V.32bis, or ITU V.34. Those processors Standard A, B, or C units. Under the rule from the proposed rule to specify that use an INMARSAT Standard C unit final rule, Standard A and B units certain performance standards, outlined are not required to have the 28.8kbs would conform to the performance in the preamble to this rule, for the Hayes-compatible modem. NMFS is standards and are still acceptable. As communication technology instead of including the Standard C unit in the list mentioned above, NMFS will continue requiring specific INMARSAT of acceptable requirements at the to accept the Standard C unit until present time to accommodate those technology. The performance standards inexpensive point-to-point technology is vessels that are currently using Standard encompass an INMARSAT Standard A available. C communications. However, the or B satellite communication unit for Standard C unit does not conform to the NMFS has determined that some transmission of observer data from at- requirement to have a point-to-point updates to the computer equipment are sea vessels. Alternatively, the industry modem connection; therefore, this unit necessary. The new requirements could use other methods that conform to may be removed from the list of specify increased RAM and hard disk the performance standards. On an required equipment in the future once storage space, and update the DOS interim basis, vessels will also be less expensive point-to-point methods operating system to version 6.0, as well permitted to use the INMARSAT become available. NMFS expects the as including Windows95 in the list of Standard C unit. By establishing Standard C transmission costs to be acceptable operating systems. performance standards, NMFS has approximately $60–80 per week, based NMFS has also removed some potentially increased the scope of on a compressed 11KB file. The 486DX software requirements that were acceptable units and provided more computer equipment specified above is included in the proposed rule. NMFS flexibility to the industry. Currently, the minimum requirement; however, intends to take a more graduated however, approximately 75 percent of greater processing capacity is preferable approach to implementation of the the affected industry has either an and would run the NMFS-supplied electronic hardware and software INMARSAT A or C unit. For those software more efficiently. intended to support the Observer vessels that choose to purchase an Equipment that differs from these Program operations. The hardware and INMARSAT A unit, the cost would be specifications would not operate the some software requirements will be approximately $30,000; however, an data-entry software that allows established in this final rule for mid INMARSAT C unit would cost from electronic data transmission to NMFS. 1997. The Observer Program Office $4,000 to $6,000. Comment 2: Does the current NMFS Not all computer hardware and software intends to work with the industry to computer system have all of the and satellite systems are compatible, install the observer data entry software problems worked out and will it accept and it would be economically and and communications package. After all all of these transmissions? practically inefficient to set up multiple of the software has been installed, Response 2: NMFS has been receiving systems to transmit and collect the same NMFS intends to initiate rulemaking data transmissions from some information. later in 1997 to require full function groundfish processor vessels via For shoreside processors, the required compliance with the Observer Program satellite communications for several equipment must be connected to a data entry and electronic years. Vessels that have these communication device that provides communications software. This communications systems voluntarily point-to-point modem connection to the approach will provide both NMFS and transmit data electronically, because it NMFS host computer and supports one the industry ample time and is a cheaper and more effective means or more of the following protocols: opportunity to resolve any unexpected of data submission. NMFS has also ITU V.22, ITU V.22bis, ITU V.32, ITU operational details. V.32bis, or ITU V.34. implemented regulations requiring The above-specified hardware NMFS intends to continue to explore certain processor vessels that participate requirements for shoreside and at-sea new technology to improve electronic in specified fisheries to provide satellite processors do not apply to processors communications, including the future communication capability for that do not process groundfish. use of the Internet. NMFS encourages transmission of observer data (60 FR NMFS published a notice of proposed the public to provide information on the 34904, July 5, 1995). These rulemaking on August 31, 1995 (60 FR feasibility of applying new requirements provide a reliable and 45393), which specified proposed communications technology to at-sea efficient means of submitting and hardware and software equipment that operations, as well as means to facilitate receiving observer data for timely processors subject to observer coverage shoreside transmission of data. inseason management of groundfish would be required to provide for use by This final rule amends a final rule fisheries. NMFS also intends to the observer. Reasons for these implementing a revised observer implement the hardware and some requirements were addressed in that coverage plan that was published in the software requirements first and allow notice. Public comment was invited Federal Register on November 1, 1996 gradual implementation of the data through September 29, 1995. One letter (61 FR 56425). entry software and communications Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63761 package to provide the opportunity for required to respond to, nor shall any and compatible software approved by any potential problems to be resolved. person be subject to a penalty for failure NMFS), a mouse, and a 3.5-inch floppy to comply with, a collection of disk drive. The computer equipment Classification information subject to the requirements specified in this paragraph (B) must be The Assistant General Counsel for of the PRA, unless that collection of connected to either an INMARSAT Legislation and Regulation, Department information displays a currently valid Standard C unit capable of transmitting of Commerce certified to the Chief OMB control number. binary files or a communication device Counsel for Advocacy of the Small This rule has been determined to be that provides a point-to-point modem Business Administration that this rule not significant for purposes of E.O. connection to the NMFS host computer would not have a significant impact on 12866. and supports one or more of the a substantial number of small entities. following protocols: ITU V.22, ITU List of Subjects in 50 CFR Part 679 Although this regulation would affect a V.22bis, ITU V.32, ITU V.32bis, or ITU substantial number of small entities, Fisheries, Reporting and V.34. Those processors that use other such as a number of shoreside recordkeeping requirements. than an INMARSAT Standard C unit processors, the effects on those Dated: November 25, 1996. must have at least a 28.8kbs Hayes- processors are not anticipated to cause Gary Matlock, compatible modem. The above-specified a reduction in annual gross revenues by hardware and software requirements do more than 5 percent, have annual Acting Assistant Administrator for Fisheries, National Marine Fisheries Service. not apply to processors that do not compliance costs that increase total process groundfish. costs of production by more than 5 For the reasons set out in the percent, or impose compliance costs for preamble, 50 CFR Part 679 is amended * * * * * small entities that are at least 10 percent as follows: (2) * * * (iii) * * * higher than compliance costs as a 50 CFR CHAPTER VI percent of sales for large entities. This (B) * * * rule would require the processors to PART 679ÐFISHERIES OF THE (1) Hardware and software. Making obtain some computer hardware and EXCLUSIVE ECONOMIC ZONE OFF available for use by the observer a software, which many of them already ALASKA personal computer in working condition have. They would also incur costs to that contains a full 486DX 66Mhz or transmit data, but the cost is estimated 1. The authority citation for part 679 greater capacity processing chip, at least to be small. One comment was received continues to read as follows: 16 megabytes of RAM, at least 75 concerning the issue of the cost of the Authority: 16 U.S.C. 773 et seq., 1801 et megabytes of free hard disk storage, required equipment. NMFS has seq. DOS version 6.0 or a successor version responded to this issue above. As a 2. In § 679.50, paragraphs of the DOS operating system, Windows result, a regulatory flexibility analysis (f)(1)(iii)(B)(1) and (f)(2)(iii)(B)(1) are 3.1, 3.11, or Windows95 (or equivalent was not prepared. revised to read as follows: and compatible software approved by This rule contains a collection-of- NMFS), at least a 28.8kbs Hayes- information requirement subject to the § 679.50 Groundfish Observer Program compatible modem, a mouse, and a 3.5- Paperwork Reduction Act (PRA). The applicable through December 31, 1997. inch floppy disk drive. The computer collection of this information has been * * * * * equipment specified in this paragraph approved by the Office of Management (f) * * * (B) must be connected to a and Budget, OMB Control number (1) * * * communication device that provides a 0648–0307. NMFS estimates an (iii) * * * point-to-point modem connection to the installation time of approximately 9–13 (B) * * * NMFS host computer and supports one hours for the satellite communication (1) Hardware and software. Providing or more of the following protocols: ITU units. Data transmission time is for use by the observer a personal V.22, ITU V.22bis, ITU V.32, ITU estimated at no more than ten minutes computer in working condition that V.32bis, or ITU V.34. The above- for each observer report. Send contains a full 486DX 66Mhz or greater specified hardware and software comments regarding these burden capacity processing chip, at least 16 requirements do not apply to processors estimates or any other aspect of the data megabytes of RAM, at least 75 that do not process groundfish. requirements, including suggestions for megabytes of free hard disk storage, * * * * * reducing the burdens, to NMFS and DOS version 6.0 or a successor version OMB (see ADDRESSES). Notwithstanding of the DOS operating system, Windows [FR Doc. 96–30635 Filed 11–29–96; 8:45 am] any other provision of law, no person is 3.1, 3.11, or Windows95 (or equivalent BILLING CODE 3510±22±P 63762

Proposed Rules Federal Register Vol. 61, No. 232

Monday, December 2, 1996

This section of the FEDERAL REGISTER staffed and become operational 3302, 3307, 8337(h) and 8456; E.O. 12364, 47 contains notices to the public of the proposed immediately. The urgency of the staffing FR 22931, 3 CFR 1982 Comp., p. 185; and issuance of rules and regulations. The needs does not permit use of normal Pub. L. 103–353. purpose of these notices is to give interested appointment procedures. 2. In § 213.3199, the first sentence of persons an opportunity to participate in the When the authority was originally rule making prior to the adoption of the final paragraph (a) and the introductory text rules. established there was no need to in paragraph (b) are revised to read as include positions above GS–15, because follows: the executive assignments system § 213.3199 Temporary organizations. OFFICE OF PERSONNEL covered positions at grades GS–16, 17 MANAGEMENT and 18. Under this system positions (a) Positions on the staffs of temporary could be filled noncompetitively in the boards and commissions which are 5 CFR Part 213 competitive service by limited executive established by law or Executive order assignments. Agencies used this for specified periods not to exceed 4 RIN 3206±AH67 authority to appoint individuals to years to perform specific projects. * ** Excepted ServiceÐSchedule A temporary organizations. (b) Positions on the staffs of Authority for Temporary Organizations The Federal Employees Pay temporary organizations within Comparability Act of 1990 abolished continuing agencies when all of the AGENCY: Office of Personnel grades GS–16, 17, and 18, and the following conditions are met: * ** Management. executive assignment system, and * * * * * ACTION: Proposed regulations. established the Senior Level system. [FR Doc. 96–30596 Filed 11–29–96; 8:45 am] Unlike the executive assignment system, BILLING CODE 6325±01±M SUMMARY: The Office of Personnel the Senior Level system does not Management (OPM) proposes to amend provide for noncompetitive time-limited the Schedule A excepted service appointments. Agencies, therefore, have DEPARTMENT OF TRANSPORTATION appointing authority used by agencies to no mechanism to staff temporary fill positions in temporary organizations organizations quickly with individuals Federal Aviation Administration at GS–15 and below. These regulations above the GS–15 level. Removal of the would delete the maximum grade level GS–15 limit would restore to agencies 14 CFR Part 39 limitation to permit agencies to make the staffing flexibility they had prior to [Docket No. 95±CE±89±AD] such appointments also to Senior Level 1990. positions. RIN 2120±AA64 DATES: Comments must be received on Regulatory Flexibility Act or before January 31, 1997. I certify that these regulations will not Airworthiness Directives; Raytheon ADDRESSES: Send or deliver written have a significant economic impact on Aircraft Company (Formerly Beech comments to Mary Lou Lindholm, a substantial number of small entities Aircraft Corporation) Model 58P and Associate Director for Employment, (including small businesses, small 58PA Airplanes Office of Personnel Management, Room organizational units, and small AGENCY: Federal Aviation 6F08, 1900 E Street, NW., Washington, governmental jurisdictions) because the Administration, DOT. DC 20415. regulations apply only to appointment ACTION: Supplemental notice of procedures used to appoint certain FOR FURTHER INFORMATION CONTACT: proposed rulemaking (NPRM); employees in Federal agencies. Sylvia Cole on (202) 606–0830, TDD Reopening of the comment period. (202) 606–0023, or FAX (202) 606–2329. Executive Order 12866, Regulatory SUPPLEMENTARY INFORMATION: The Review SUMMARY: This document proposes to Schedule A authority for appointing revise an earlier proposed airworthiness This rule has been reviewed by the staff in temporary organizations was directive (AD) that would have required Office of Management and Budget in established in 1979. It permits agencies the following on Raytheon Aircraft accordance with Executive Order 12866. to fill positions on the staffs of Company (formerly Beech Aircraft temporary boards and commissions List of Subjects in 5 CFR Part 213 Corporation) Model 58P and 58PA airplanes: inspecting for cracks and established by law or Executive order Government employees, Reporting missing rivets in the cabin structure for specified periods not to exceed 4 and recordkeeping requirements. years. The authority also permits (longeron) adjacent to and aft of the appointments in temporary U.S. Office of Personnel Management. second right-hand (RH) cabin window, organizations established within James B. King, and repairing any cracked structure and existing agencies to perform work Director. installing rivets, if missing. The Federal outside the agency’s continuing Accordingly, OPM proposes to amend Aviation Administration (FAA) has responsibilities. Currently appointments 5 CFR part 213 as follows: received several reports of airplanes can only be made at GS–15 and below. 1. The authority citation for part 213 with cracks in the cabin structure which OPM has authority to except positions continues to read as follows: are also missing rivets that should have under Schedule A when examining for Authority: 5 U.S.C. 3301 and 3302, E.O. been installed in the cabin structure to them is impracticable. Temporary 10577, 3 CFR 1954–1958 Comp., p. 218; secure the frame, splice, and longeron boards and commissions established by § 213.101 also issued under 5 U.S.C. 2103; together. The missing rivets could lead law or Executive order need to be § 213.3102 also issued under 5 U.S.C. 3301, to cabin structure cracks, and therefore Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63763 prompted the previously proposed AD Comments are specifically invited on Service Bulletin (SB) No. 2630, Issued: action. the overall regulatory, economic, November, 1995, and Raytheon Aircraft Since publication of that proposal, the environmental, and energy aspects of Mandatory SB No. 2691, Rev. 1, Issued: FAA has determined that the proposed the proposed rule. All comments June, 1996; Revised: October, 1996. action is still a valid safety issue, but submitted will be available, both before The FAA estimates that 386 airplanes that cracks have also been reported in and after the closing date for comments, in the U.S. registry would be affected by the RH lower longeron and that this area in the Rules Docket for examination by the proposed AD, that it would take should also be inspected for cracks, interested persons. A report that approximately 3 workhours to repaired if there are cracks and re- summarizes each FAA-public contact accomplish the inspection and that the reinforced if no cracks are found. This concerned with the substance of this average labor rate is approximately $60 proposed new action revises the proposal will be filed in the Rules an hour. In estimating the total cost previous proposal by incorporating this Docket. impact of the proposed AD on U.S. change. The actions specified by the Commenters wishing the FAA to operators, the FAA is only using the proposed AD are intended to prevent acknowledge receipt of their comments proposed inspection criteria (3 structural cracking to the cabin caused submitted in response to this workhours). This estimate is based on by missing rivets, which if not supplemental notice must submit a self- the assumption that no affected airplane corrected, could cause decompression addressed, stamped postcard on which will have missing rivets or a cracked injuries to passengers, structural damage the following statement is made: longeron. Based on these figures, the to the fuselage, and loss of the airplane. ‘‘Comments to Docket No. 95–CE–89– total cost impact of the proposed AD on Since the comment period for the AD.’’ The postcard will be date stamped U. S. operators is estimated to be original proposal has closed and the and returned to the commenter. $69,480 or $180 per airplane. change described above goes beyond the Availability of Supplemental NPRM’s If, during the proposed inspection, scope of what was originally proposed, cracks are found and rivets are missing, the FAA is allowing additional time for Any person may obtain a copy of this the estimated costs for accomplishing the public to comment. supplemental NPRM by submitting a the following proposed actions would DATES: Comments must be received on request to the FAA, Central Region, be: or before February 3, 1997. Office of the Assistant Chief Counsel, Attention: Rules Docket No. 95–CE–89– —2 workhours to install rivets at an ADDRESSES: Submit comments in estimated cost of $125 per airplane triplicate to the Federal Aviation AD, Room 1558, 601 E. 12th Street, Kansas City, Missouri 64106. ($120 for labor and $5 for rivets), Administration (FAA), Central Region, —8 workhours to repair any crack in the Office of the Assistant Chief Counsel, Discussion designated area of the RH upper Attention: Rules Docket No. 95–CE–89– A proposal to amend part 39 of the longeron at an estimated cost of $675 AD, Room 1558, 601 E. 12th Street, Federal Aviation Regulations (14 CFR per airplane ($480 for labor and $195 Kansas City, Missouri 64106. Comments part 39) to include an AD that would for parts), may be inspected at this location apply to certain Beech Aircraft —6 workhours to re-reinforce the RH between 8 a.m. and 4 p.m., Monday Corporation (Beech) Model 58P and lower longeron at an estimated cost of through Friday, holidays excepted. 58PA airplanes was published in the $460 per airplane ($360 for labor and Service information that applies to the Federal Register on February 8, 1996 $100 for parts), or proposed AD may be obtained from (61 FR 4756). The action proposed to —16 workhours to repair any crack Raytheon Aircraft Company, P.O. Box require inspecting for cracks and found in the RH lower longeron at an 85, Wichita, Kansas 67201–0085. This missing rivets in the cabin structure estimated cost of $2,060 per airplane information also may be examined at (upper longeron) adjacent to and aft of ($960 for labor and $1,100 for parts). the Rules Docket at the address above. the second right-hand (RH) cabin Raytheon has informed the FAA that FOR FURTHER INFORMATION CONTACT: window, and repairing any cracked parts have been distributed to equip David Ostrodka, Aerospace Engineer, structure and installing rivets, if approximately 19 airplanes. And, for a FAA, Wichita Aircraft Certification missing. After the proposed notice was period of one year from the date of issue Office, 1801 Airport Road, Room 100, published, the name of the of the service bulletin, Raytheon is Mid-Continent Airport, Wichita, Kansas manufacturer changed from Beech allowing warranty credit for parts and 67209; telephone (316) 946–4129, Aircraft Corporation to Raytheon labor on all affected airplanes. facsimile (316) 946–4407. Aircraft Company (Raytheon). The The regulations proposed herein SUPPLEMENTARY INFORMATION: model designation in the applicability would not have substantial direct effects section of the proposed AD remains the on the States, on the relationship Comments Invited same. between the national government and Interested persons are invited to Since publication of the proposal, the States, or on the distribution of participate in the making of the additional reports have been received power and responsibilities among the proposed rule by submitting such regarding cracking in another area of the various levels of government. Therefore, written data, views, or arguments as longeron. The FAA has re-examined all in accordance with Executive Order they may desire. Communications information related to this subject and 12612, it is determined that this should identify the Rules Docket determined that the right-hand (RH) proposal would not have sufficient number and be submitted in triplicate to lower longeron between two doublers federalism implications to warrant the the address specified above. All adjacent to the lower aft side of the RH preparation of a Federalism Assessment. communications received on or before second cabin window should also be For the reasons discussed above, I the closing date for comments, specified inspected for cracks, repaired, if certify that this action (1) is not a above, will be considered before taking cracked, and re-reinforced, if no cracks ‘‘significant regulatory action’’ under action on the proposed rule. The are found. Executive Order 12866; (2) is not a proposals contained in this Accomplishment of the proposed ‘‘significant rule’’ under DOT supplemental notice may be changed in inspection, repair and installation Regulatory Policies and Procedures (44 light of the comments received. would be in accordance with Beechcraft FR 11034, February 26, 1979); and (3) if 63764 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules promulgated, will not have a significant the effect of the modification, alteration, or to herein upon request to Raytheon Aircraft economic impact, positive or negative, repair on the unsafe condition addressed by Company, P.O. Box 85, Wichita, Kansas on a substantial number of small entities this AD; and, if the unsafe condition has not 67201–0085; or may examine this document under the criteria of the Regulatory been eliminated, the request should include at the FAA, Central Region, Office of the specific proposed actions to address it. Assistant Chief Counsel, Room 1558, 601 E. Flexibility Act. A copy of the draft Compliance: Required within the next 100 12th Street, Kansas City, Missouri 64106. regulatory evaluation prepared for this hours time-in-service (TIS) after the effective Issued in Kansas City, Missouri, on action has been placed in the Rules date of this AD, unless already accomplished: November 25, 1996. Docket. A copy of it may be obtained by To prevent structural cracking to the cabin Henry A. Armstrong, contacting the Rules Docket at the caused by missing rivets, which if not location provided under the caption corrected, could cause decompression Acting Manager, Small Airplane Directorate, Aircraft Certification Service. ADDRESSES. injuries to passengers, structural failure of the fuselage, and loss of the airplane, [FR Doc. 96–30576 Filed 11–29–96; 8:45 am] List of Subjects in 14 CFR Part 39 accomplish the following: BILLING CODE 4910±13±U Air transportation, Aircraft, Aviation (a) Inspect cabin window upper longeron (next to the upper aft splice) between the safety, Safety. second and third right-hand (RH) cabin side 14 CFR Part 71 The Proposed Amendment windows for cracks and missing rivets in accordance with the ACCOMPLISHMENT Accordingly, pursuant to the INSTRUCTIONS section of Beechcraft [Airspace Docket No. 96±ANM±23] authority delegated to me by the Mandatory (Beech) Service Bulletin (SB) No. Administrator, the Federal Aviation 2630, Issued: November 1995. Proposed Removal of Class D Administration proposes to amend part (1) If cracks are found in the longeron, Airspace and Establishment of Class E 39 of the Federal Aviation Regulations prior to further flight, repair the cracks in Airspace; Coeur d'Alene, Idaho (14 CFR part 39) as follows: accordance with the ACCOMPLISHMENT INSTRUCTIONS section of Beech SB No. AGENCY: Federal Aviation PART 39ÐAIRWORTHINESS 2630, Issued: November 1995. Administration (FAA), DOT. (2) If rivets are found missing, prior to DIRECTIVES further flight, install the rivets in accordance ACTION: Supplemental notice of proposed rulemaking (SNPRM), 1. The authority citation for part 39 with the ACCOMPLISHMENT INSTRUCTIONS section of Beech SB No. reopening of comment period. continues to read as follows: 2630, Issued: November 1995. Authority: 49 U.S.C. 106(g), 40113, 44701. (b) Inspect the RH lower longeron between SUMMARY: On September 9, 1996, the the two doublers adjacent to the lower aft § 39.13 [AMENDED] FAA proposed to remove Class D side of the RH second cabin window for Airspace and establish Class E Airspace 2. Section 39.13 is amended by cracks in accordance with the ACCOMPLISHMENT INSTRUCTIONS at Coeur d’Alene, Idaho. This action is adding a new airworthiness directive the result of decommissioning the air (AD) to read as follows: section, PART I of Raytheon Mandatory SB No. 2691, Rev. 1, Issued: June, 1996, Revised: traffic control tower at Coeur d’Alene Raytheon Aircraft Company: Docket No. 95– October 1996. Air Terminal, Idaho. The Notice of CE–89–AD. (1) If cracks are found, prior to further Proposed Rulemaking (NPRM), as Applicability: Models 58P and 58PA flight, repair the cracks in accordance with published, inadvertently omitted the airplanes, having the following serial the ACCOMPLISHMENT INSTRUCTIONS removal of Class E4 airspace associated numbers, and certificated in any category: section, PART II in Raytheon Mandatory SB with the Class D airspace action. The No. 2691, Rev. 1, Issued: June, 1996, Revised: part-time airspace verbiage was also Serial Numbers Listed in Beech Service October 1996. Bulletin (SB) No. 2630 (2) If no cracks are found, prior to further omitted. Also, an error was identified TJ–2 through TJ–177 flight, reinforce the RH lower longeron in with the 4,800-foot MSL ceiling for the TJ–179 accordance with the ACCOMPLISHMENT proposed airspace designation. This TJ–181 through TJ–212 INSTRUCTIONS section, PART III in Supplemental Notice of Proposed TJ–214 through TJ–270 Raytheon Mandatory SB No. 2691, Rev. 1, Rulemaking (SNPRM) corrects those TJ–272 through TJ–283 Issued: June, 1996, Revised: October 1996. errors and omissions and provides an TJ–285 through TJ–288 (c) Special flight permits may be issued in additional comment period. TJ–290 through TJ–313 accordance with sections 21.197 and 21.199 TJ–315 through TJ–321 of the Federal Aviation Regulations (14 CFR DATES: Comments must be received on TJ–323, TJ–324 21.197 and 21.199) to operate the airplane to or before December 15, 1996. TJ–326 through TJ–368, and a location where the requirements of this AD ADDRESSES: Send comments on the TJ–370 through TJ–497 can be accomplished. (d) An alternative method of compliance or proposal in triplicate to: Manager, Serial Numbers Listed in Raytheon SB No. adjustment of the compliance time that Operations Branch, ANM–530, Federal 2691 provides an equivalent level of safety may be Aviation Administration, Docket No. TJ–2 through TJ–121 approved by the Manager, Wichita Aircraft 96–ANM–23, 1601 Lind Avenue S.W., TJ–123 through TJ 394 Certification Office, 1801 Airport Road, Renton, Washington 98055–4056. TJ–396 through TJ–497 Room 100, Mid-Continent Airport, Wichita, Kansas 67209. The request shall be The official docket may be examined Note 1: This AD applies to each airplane at the same address. identified in the preceding applicability forwarded through an appropriate FAA provision, regardless of whether it has been Maintenance Inspector, who may add An informal docket may also be modified, altered, or repaired in the area comments and then send it to the Manager, examined during normal business hours subject to the requirements of this AD. For Wichita Aircraft Certification Office. at the address listed above. airplanes that have been modified, altered, or Note 2: Information concerning the FOR FURTHER INFORMATION CONTACT: repaired so that the performance of the existence of approved alternative methods of requirements of this AD is affected, the compliance with this AD, if any, may be James Riley, ANM–5322, Federal owner/operator must request approval for an obtained from the Wichita Aircraft Aviation Administration, Docket No. alternative method of compliance in Certification Office. 96–ANM–23, 1601 Lind Avenue S.W., accordance with paragraph (d) of this AD. (e) All persons affected by this directive Renton, Washington 98055–4056; The request should include an assessment of may obtain copies of the document referred telephone number: (206) 227–2537. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63765

SUPPLEMENTARY INFORMATION: designation would be removed and the PART 71Ð[AMENDED] Comments Invited airspace would be incorporated within the Class E2 airspace. (2) The part-time 1. The authority citation for 14 CFR Interested parties are invited to airspace verbiage will be added to the part 71 continues to read as follows: participate in this proposed rulemaking Class E airspace designation to reflect a Authority: 49 U.S.C. 106(g), 40103, 40113, by submitting such written data, views, non-twenty four hour operation. (3) The 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– or arguments as they may desire. 4,800-foot MSL ceiling, not associated 1963 Comp., p. 389; 14 CFR 11.69. Comments that provide the factual basis with Class E2 airspace areas, would be supporting the views and suggestions § 71.1 [Amended] removed. The FAA published an NPRM presented are particularly helpful in 2. The incorporation by reference in on this proposal on September 9, 1996 developing reasoned regulatory 14 CFR 71.1 of the Federal Aviation decisions on the proposal. Comments (61 FR 47465). Since issuance of the Administration Order 7400.9D, Airspace are specifically invited on the overall NPRM, the FAA has discovered errors Designations and Reporting Points, regulatory, aeronautical, economic, in the proposal. Changes to the proposal dated September 4, 1996, and effective environmental, and energy related to correct these errors are significant September 16, 1996, is amended as aspects of the proposal. enough to warrant issuance of a SNPRM follows: and reopening of the comment period. Communications should identify the Paragraph 5000 Class D airspace. airspace docket number and be Comments received in response to the * * * * * submitted in triplicate to the address original NPRM and this SNPRM would listed above. Commenters wishing the be addressed in the final disposition of ANM ID D Coeur d’Alene, ID [Remove] FAA to acknowledge receipt of their the rule. The area would be depicted on * * * * * comments on this notice must submit aeronautical charts for pilot reference. Paragraph 6004 Class E Airspace areas with those comments a self-addressed, Class D and Class E airspace areas are designated as an extension to a Class D stamped postcard on which the published in Paragraphs 5000, 6002, surface area. following statement is made: and 6004 respectively, of FAA Order * * * * * ‘‘Comments to Airspace Docket No. 96– 7400.9D dated September 4, 1996, and ANM ID E4 Coeur d’Alene, ID [Remove] ANM–23.’’ The postcard will be date/ effective September 16, 1996, which is time stamped and returned to the incorporated by reference in 14 CFR * * * * * commenter. All communications 71.1. The Class E airspace designation Paragraph 6002 Class E airspace areas received on or before the specified listed in this document would be designated as a surface area for an airport. closing date for comments will be published subsequently in the Order. * * * * * considered before taking action on the The Class D and E4 airspace ANM ID E2 Couer d’Alene, ID [New] proposed rule. The proposal contained descriptions listed in this document in this notice may be changed in the Coeur d’Alene Air Terminal, ID would be removed subsequently from (lat. 47°46′28′′N, long. 116°49′11′′W) light of comments received. All the Order. comments submitted will be available Coeur d’Alene VOR/DME (lat. 47°46′25′′N, long. 116°49′14′′W) for examination at the address listed The FAA has determined that this above both before and after the closing proposed regulation only involves an Within a 4.4-mile radius of the Coeur d’Alene Air Terminal and within 3.5 miles date for comments. A report established body of technical regulations for which frequent and each side of the Coeur d’Alene VOR/DME summarizing each substantive public 251 degree radial extending from the 4.4-mile contact with FAA personnel concerned routine amendments are necessary to radius to 6 miles southwest of the airport and with this rulemaking will be filed in the keep them operationally current. It, within 1.8 miles each side of the Coeur docket. therefore, (1) is not a ‘‘significant d’Alene VOR/DME 183 degree radial regulatory action’’ under Executive extending from the 4.4-mile radius to 8 miles Availability of SNPRM’s Order 12866; (2) is not a ‘‘significant south of the airport. This Class E airspace is Any person may obtain a copy of this rule’’ under DOT Regulatory Policies effective during the specific dates and times Notice of Proposed Rulemaking (NPRM) and Procedures (44 FR 11034; February established in advance by a notice to airmen. by submitting a request to the Federal The effective date and time will thereafter be 26, 1979); and (3) does not warrant continuously published in the Airport/ Aviataion Administration, Operations preparation of a regulatory evaluation as Facility Directory. Branch, ANM–530, 1601 Lind Avenue the anticipated impact is so minimal. * * * * * S.W., Renton, Washington 98055–4056. Since this is a routine matter that will Issued in Seattle, Washington, on Communications must identify the only affect air traffic procedures and air November 13, 1996. notice number of this NPRM. Persons navigation, it is certified that this rule, Glenn A. Adams III, interested in being placed on a mailing when promulgated, will not have a Assistant Manager, Air Traffic Division, list for future NPRM’s should also significant economic impact on a Northwest Mountain Region. request a copy of Advisory Circular No. substantial number of small entities [FR Doc. 96–30640 Filed 11–29–96; 8:45 am] 11–2A, which describes the application under the criteria of the Regulatory BILLING CODE 4910±13±M procedure. Flexibility Act. The Proposal List of Subjects in 14 CFR Part 71 The FAA is considering an 14 CFR Part 71 amendment to part 71 of the Federal Airspace, Incorporation by reference, [Airspace Docket No. 96±ASO±30] Aviation regulations (14 CFR part 71) to Navigation (air). remove Class D airspace, along with the The Proposed Amendment Proposed Amendment to Class E associated Class E4 airspace Airspace; Deland, FL designation, and establish Class E In consideration of the foregoing, the AGENCY: Federal Aviation airspace at Coeur d’Alene, Idaho. Federal Aviation Administration Administration (FAA), DOT. Changes to the airspace designations are proposes to amend 14 CFR part 71 as ACTION: Notice of proposed rulemaking. as follows: (1) The Class E4 airspace follows: 63766 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules

SUMMARY: This notice proposes to Region, Room 550, 1701 Columbia List of Subjects in 14 CFR Part 71 amend the Class E airspace area at Avenue, College Park, Georgia 30337, Airspace, Incorporation by reference, Deland, FL, An amendment to the VOR both before and after the closing date for Navigation (Air). or GPS RWY 30 Standard Instrument comments. A report summarizing each Approach Procedure (SIAP) has been substantive public contact with FAA The Proposed Amendment developed for the Deland Muni-Sidney personnel concerned with this In consideration of the foregoing, the H. Taylor Field Airport. Additional rulemaking will be filed in the docket. Federal Aviation Administration controlled airspace extending upward Availability of NPRMs proposes to amend 14 CFR Part 71 as from 700 feet above the surface (AGL) is follows: needed to accommodate this SIAP and Any person may obtain a copy of this for IFR operations at the airport. Notice of Proposed Rulemaking (NPRM) PART 71Ð[AMENDED] DATES: by submitting a request to the Federal Comments must be received on 1. The authority citation for 14 CFR or before January 20, 1997. Aviation Administration, Manager, Operations Branch, ASO–530, Air Part 71 continues to read as follows: ADDRESSES: Send comments on the proposal in triplicate to: Federal Traffic Division, P.O. Box 20636, Authority: 49 U.S.C. 106(g); 40103, 40113, Atlanta, Georgia 30320. 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– Aviation Administration, Docket No. 1963 Comp., p. 389; 14 CFR 11.69. 96–ASO–30, Manager, Operations Communications must identify the notice number of this NPRM. Persons Branch, ASO–530, P.O. Box 20636, § 71.1 [Amended] interested in being placed on a mailing Atlanta, Georgia 30320. 2. The incorporation by reference in The official docket may be examined list for future NPRMs should also request a copy of Advisory Circular No. 14 CFR 71.1 of Federal Aviation in the Office of the Assistant Chief Administration Order 7400.9D, Airspace Counsel for Southern Region, Room 550, 11–2A which describes the application procedure. Designations and Reporting Points, 1701 Columbia Avenue, College Park, dated September 4, 1996, and effective Georgia 30337, telephone (404) 305– The Proposal September 16, 1996, is amended as 5586. The FAA is considering an follows: FOR FURTHER INFORMATION CONTACT: amendment to Part 71 of the Federal Benny L. McGlamery, Operations Paragraph 6005 Class E airspace areas Aviation Regulations (14 CFR Part 71) to extending upward from 700 feet above the Branch, Air Traffic Division, Federal amend the Class E airspace area at surface of the earth. Aviation Administration, P.O. Box Deland, FL. An amendment to the VOR * * * * * 20636, Atlanta, Georgia 30320; or GPS RWY 30 SIAP has been telephone (404) 305–5570. developed for the Deland Muni-Sidney ASO FL E5 Deland, FL [Revised] SUPPLEMENTARY INFORMATION: H. Taylor Field Airport. Additional Deland Muni-Sidney H. Taylor Field Airport, controlled airspace extending upward FL ° ′ ′′ ° ′ ′′ Comments Invited from 700 feet above the surface ((AGL) (lat. 29 04 00 N, long. 81 17 03 W) Interested parties are invited to is needed to accommodate this SIAP That airspace extending upward from 700 participate in this proposed rulemaking and for IFR operations at the airport. feet above the surface within a 7.6-mile by submitting such written data, views Class E airspace designations for radius of the Deland Muni-Sidney H. or arguments as they may desire. Taylor Field Airport, excluding that airspace areas extending upward from airspace within the Daytona Beach, FL Comments that provide the factual basis 700 feet or more above the surface are Class E airspace area. supporting the views and suggestions published in Paragraph 6005 of FAA presented are particularly helpful in * * * * * Order 7400.9D dated September 4, 1996, Issued in College Park, Georgia, on developing reasoned regulatory and effective September 16, 1996, which November 21, 1996. decisions on the proposal. Comments is incorporated by reference in 14 CFR Benny L. McGlamery, are specifically invited on the overall 71.1. The Class E airspace designation regulatory, aeronautical, economic, Acting Manager, Air Traffic Division, listed in this document would be Southern Region. environmental, and energy-related published subsequently in the Order. aspects of the proposal. The FAA has determined that this [FR Doc. 96–30641 Filed 11–29–96; 8:45 am] Communications should identify the proposed regulation only involves an BILLING CODE 4910±13±M airspace docket and be submitted in established body of technical triplicate to the address listed above. regulations for which frequent and 14 CFR Part 71 Commenters wishing the FAA to routine amendments are necessary to acknowledge receipt of their comments keep them operationally current. It, [Airspace Docket No. 96±ASO±35] on this notice must submit with those therefore, (1) is not a ‘‘significant comments a self-addressed, stamped regulatory action’’ under Executive Proposed Establishment of Class E postcard on which the following Order 12866; (2) is not a ‘‘significant Airspace, Apalachicola, FL statement is made: ‘‘Comments to rule’’ under DOT Regulatory Policies AGENCY: Federal Aviation Airspace Docket No. 96–ASO–30.’’ The and Procedures (44 FR 11034; February Administration (FAA), DOT. postcard will be date/time stamped and 26, 1979); and (3) does not warrant ACTION: Notice of proposed rulemaking. returned to the commenter. All preparation of a regulatory evaluation as communications received before the the anticipated impact is so minimal. SUMMARY: This notices proposes to specified closing date for comments will Since this is a routine matter that will establish Class E airspace at be considered before taking action on only affect air traffic procedures and air Apalachicola, FL. A NDB RWY 13 and the proposed rule. The proposal navigation, it is certified that this rule, a NDB RWY 31 Standard Instrument contained in this notice may be changed when promulgated, will not have a Approach Procedures (SIAP’s) have in light of the comments received. All significant economic impact on a been developed for Apalachicola comments submitted will be available substantial number of small entities Municipal Airport. Controlled airspace for examination in the Office of the under the criteria of the Regulatory extending upward from 700 feet above Assistant Chief Counsel for Southern Flexibility Act. the surface (AGL) is needed to Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63767 accommodate this SIAP and for substantive public contact with FAA List of Subjects in 14 CFR Part 71 instrument flight rules (IFR) operations personnel concerned with this Airspace, Incorporation by reference, at Apalachicola Municipal Airport. The rulemaking will be filed in the docket. Navigation (Air). operating status of the airport will Availability Of NPRMs change from VFR to include IFR The Proposed Amendment operations concurrent with publication Any person may obtain a copy of this In consideration of the foregoing, the of this SIAP. Notice of Proposed Rulemaking (NPRM) Federal Aviation Administration DATES: Comment must be received on or by submitting a request to the Federal proposes to amend 14 CFR Part 71 as before January 20, 1997. Aviation Administration, Manager, follows: ADDRESSES: Send comments on the Operations Branch, ASO–530, Air proposal in triplicate to: Federal Traffic Division, P.O. Box 20636, PART 71Ð[AMENDED] Aviation Administration, Docket No. Atlanta, Georgia 30320. 96–ASO–35, Manager, Operations Communications must identify the 1. The authority citation for 14 CFR Branch, ASO–530, P.O. Box 20636, notice number of this NPRM. Persons Part 71 continues to read as follows: Atlanta, Georgia 30320. interested in being placed on a mailing Authority: 49 U.S.C. 106(g); 40103, 40113, The official docket may be examined list for future NPRMs should also 40120; E.O. 10854, 24 FR 9565, 3 CFR 1959– in the Office of the Assistant Chief request a copy of Advisory Circular No. 1963 Comp., p. 389; 14 CFR 11.69. Counsel for Southern Region, Room 550, 11–2A which describes the application § 71.1 [Amended] 1701 Columbia Avenue, College Park, procedure. Georgia 30337, telephone (404) 305– 2. The incorporation by reference in The Proposal 5586. 14 CFR 71.1 of Federal Aviation Administration Order 7400.9D, Airspace FOR FURTHER INFORMATION CONTACT: The FAA is considering an Designations and Reporting Points, Benny L. McGlamery, Operations amendment to Part 71 of the Federal dated September 4, 1996, and effective Branch, Air Traffic Division, Federal Aviation Regulations (14 CFR Part 71) to September 16, 1996, is amended as Aviation Administration, P.O. Box establish Class E airspace at follows: 20636, Atlanta, Georgia 30320; Apalachicola, FL. A NDB RWY 13 and telephone (404) 305–5570. NDB RWY 31 SIAP’s have been Paragraph 6005 Class E airspace areas developed for Apalachicola Municipal extending upward from 700 feet above the SUPPLEMENTARY INFORMATION: Airport. Controlled airspace extending surface of the earth. Comments Invited upward from 700 feet AGL is needed to * * * * * Interested parties are invited to accommodate this SIAP and for IFR ASO FL E5 Apalachicola, FL [News] participate in this proposed rulemaking operations at Apalachicola Municipal Airport. The operating status of the Apalachicola Municipal Airport, FL by submitting such written data, views (lat. 29°43′46′′N, long. 85°01′44′′W) or arguments as they may desire. airport will change from VFR to include IFR operations concurrent with That airspace extending upward from 700 Comments that provide the factual basis feet above the surface within a 7.7-mile supporting the views and suggestions publication of this SIAP. Class E radius of Apalachicola Municipal Airport. airspace designations for airspace areas presented are particularly helpful in * * * * * extending upward from 700 feet or more developing reasoned regulatory Issued in College Park, Georgia, on decisions on the proposal. Comments above the surface are published in November 21, 1996. are specifically invited on the overall Paragraph 6005 of FAA Order 7400.9D regulatory, aeronautical, economic, dated September 4, 1996, and effective Benny L. McGlamery, environmental, and energy-related September 16, 1996, which is Acting Manager, Air Traffic Division, aspects of the proposal. incorporated by reference in 14 CFR Southern Region. Communications should identify the 71.1. The Class E airspace designation [FR Doc. 96–30642 Filed 11–29–96; 8:45 am] airspace docket and be submitted in listed in this document would be BILLING CODE 4910±13±M triplicate to the address listed above. published subsequently in the Order. Commenters wishing to FAA to The FAA has determined that this acknowledge receipt of their comments proposed regulation only involves an 14 CFR Part 71 on this notice must submit with those established body of technical comments a self-addressed, stamped regulations for which frequent and [Airspace Docket No. 96±ASO±34] postcard on which the following routine amendments are necessary to Proposed Amendment to Class E statement is made: ‘‘Comments to keep them operationally current. It, Airspace; Eglin AFB, FL Airspace Docket No. 96–ASO–35.’’ The therefore, (1) is not a ‘‘significant postcard will be date/time stamped and regulatory action’’ under Executive AGENCY: Federal Aviation returned to the commenter. All Order 12866; (2) is not a ‘‘significant Administration (FAA), DOT. communications received before the rule’’ under DOT Regulatory Policies ACTION: Notice of proposed rulemaking. specified closing date for comments will and Procedures (44 FR 11034; February be considered before taking action on 26, 1979); and (3) does not warrant SUMMARY: This notice proposes to the proposal rule. The proposal preparation of a regulatory evaluation as modify Class E airspace at Eglin AFB, contained in this notice may be changed the anticipated impact is so minimal. FL. A GPS RWY 32 Standard Instrument in light of the comments received. All Since this is a routine matter that will Approach Procedure (SIAP) has been comments submitted will be available only affect air traffic procedures and air developed for the Destin-Fort Walton for examination in the Office of the navigation, it is certified that this rule, Beach Airport, Destin, FL. Additional Assistant Chief Counsel for Southern when promulgated, will not have a controlled airspace extending upward Region, Room 550, 1701 Columbia significant economic impact on a from 700 feet above the surface (AGL) is Avenue, College Park, Georgia 30337, substantial number of small entities needed to accommodate this SIAP and both before and after the closing date for under the criteria of the Regulatory for instrument flight rules (IFR) comments. A report summarizing each Flexibility Act. operations at the airport. 63768 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules

DATES: Comments must be received on by submitting a request to the Federal PART 71Ð[AMENDED] or before January 20, 1997. Aviation Administration, Manager, 1. The authority citation for 14 CFR ADDRESSES: Send comments on the Operations Branch, ASO–530, Air Part 71 continues to read as follows: proposal in triplicate to: Federal Traffic Division, P.O. Box 20636, Aviation Administration, Docket No. Atlanta, Georgia 30320. Authority: 49 U.S.C. 106(g); 40103, 40113, 96–ASO–34, Manager, Operations Communications must identify the 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– Branch, ASO–530, P.O. Box 20636, notice number of this NPRM. Persons 1963 Comp., p. 389; 14 CFR 11.69. Atlanta, Georgia 30320. interested in being placed on a mailing § 71.1 [Amended] The official docket may be examined list for future NPRMs should also 2. The incorporation by reference in in the Office of the Assistant Chief request a copy of Advisory Circular No. 14 CFR 71.1 of Federal Aviation Counsel for Southern Region, Room 550, 11–2A which describes the application Administration Order 7400.9D, Airspace 1701 Columbia Avenue, College Park, procedure. Designations and Reporting Points, Georgia 30337, telephone (404) 305– The Proposal dated September 4, 1996, and effective 5586. September 16, 1996, is amended as FOR FURTHER INFORMATION CONTACT: The FAA is considering an follows: Benny L. McGlamery, Operations amendment to Part 71 of the Federal Branch, Air Traffic Division, Federal Paragraph 6005 Class E airspace areas Aviation Regulations (14 CFR Part 71) to extending upward from 700 feet above the Aviation Administration, P.O. Box modify Class E airspace at Eglin AFB, surface of the earth. 20636, Atlanta, Georgia 30320; FL. A GPS RWY 32 SIAP has been telephone (404) 305–5570. * * * * * developed for the Destin-Fort Walton ASO FL E5 Eglin AFB, FL [Revised] SUPPLEMENTARY INFORMATION: Beach Airport, Destin, FL. Additional controlled airspace extending upward Eglin AFB, FL Comments Invited (lat. 30°29′13′′N, long. 86°31′34′′W) from 700 feet above the surface (AGL) is Eglin AF Aux No. 3 Duke Field Interested parties are invited to needed to accommodate this SIAP and ° ′ ′′ ° ′ ′′ participate in this proposed rulemaking (lat. 30 39 07 N, long. 86 31 23 W) for instrument flight rules (IFR) Hurlburt Field by submitting such written data, views operations at the airport. Class E (lat. 30°25′44′′N, long. 86°41′20′′W) or arguments as they may desire. airspace designations for airspace areas Destin-Fort Walton Airport Comments that provide the factual basis extending upward from 700 feet or more (lat. 30°24′01′′N, long. 86°28′19′′W) supporting the views and suggestions above the surface are published in Fort Walton Beach Airport presented are particularly helpful in (lat. 30°24′23′′N, long. 86°49′45′′W) Paragraph 6005 of FAA Order 7400.9D developing reasoned regulatory dated September 4, 1996, and effective That airspace extending upward from 700 decisions on the proposal. Comments feet above the surface within a 7-mile radius September 16, 1996, which is are specifically invited on the overall of Eglin AFB, Eglin AF Aux No. 3 Duke Field incorporated by reference in 14 CFR regulatory, aeronautical, economic, and Hurlburt Field, and within a 7.8-mile 71.1. The Class E airspace designation environmental, and energy-related radius of Destin-Fort Walton Beach Airport; excluding that airspace within the Crestview, aspects of the proposal. listed in this document would be published subsequently in the Order. FL, Class E airspace area and a 1.5-mile Communications should identify the radius of Fort Walton Beach Airport. airspace docket and be submitted in The FAA has determined that this * * * * * proposed regulation only involves an triplicate to the address listed above. Issued in College Park, Georgia, on Commenters wishing the FAA to established body of technical November 21, 1996. acknowledge receipt of their comments regulations for which frequent and Benny L. McGlamery, routine amendments are necessary to on this notice must submit with those Acting Manager, Air Traffic Division, comments a self-addressed, stamped keep them operationally current. It, Southern Region. postcard on which the following therefore, (1) is not a ‘‘significant rule’’ [FR Doc. 96–30643 Filed 11–29–96; 8:45 am] statement is made: ‘‘Comments to under DOT Regulatory Policies and BILLING CODE 4910±13±M Airspace Docket No. 96–ASO–34.’’ The Procedures (44 FR 11034; February 26, postcard will be date/time stamped and 1979); and (3) does not warrant returned to the commenter. All preparation of a regulatory evaluation as 14 CFR Part 71 communications received before the the anticipated impact is so minimal. specified closing date for comments will Since this is a routine matter that will [Airspace Docket No. 96±ASO±36] be considered before taking action on only affect air traffic procedures and air Proposed Establishment of Class E the proposed rule. The proposal navigation, it is certified that this rule, Airspace; Hazard, KY contained in this notice may be changed when promulgated, will not have a in light of the comments received. All significant economic impact on a AGENCY: Federal Aviation comments submitted will be available substantial number of small entities Administration (FAA), DOT. for examination in the Office of the under the criteria of the Regulatory ACTION: Notice of proposed rulemaking. Assistant Chief Counsel for Southern Flexibility Act. Region, Room 550, 1701 Columbia SUMMARY: This notice proposes to Avenue, College Park, Georgia 30337, List of Subjects in 14 CFR Part 71 establish Class E airspace at Hazard, KY. both before and after the closing date for A VOR/DME RWY 14 and a GPS RWY Airspace, Incorporation by reference, comments. A report summarizing each 14 Standard Instrument Approach Navigation (Air). substantive public contact with FAA Procedures (SIAP’s) have been personnel concerned with this The Proposed Amendment developed for Wendell H. Ford Airport. rulemaking will be filed in the docket. Controlled airspace extending upward In consideration of the foregoing, the from 700 feet above the surface (AGL) is Availability of NPRMs Federal Aviation Administration needed to accommodate these SIAP’s Any person may obtain a copy of this proposes to amend 14 CFR Part 71 as and for instrument flight rules (IFR) Notice of Proposed Rulemaking (NPRM) follows: operations at Wendell H. Ford Airport. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63769

The operating status of the airport will Availability of NPRMs The Proposed Amendment change from VFR to include IFR Any person may obtain a copy of this In consideration of the foregoing, the operations concurrent with publication Federal Aviation Administration of this SIAP. Notice of Proposed Rulemaking (NPRM) by submitting a request to the Federal proposes to amend 14 CFR Part 71 as DATES: Comments must be received on follows: or before January 20, 1997. Aviation Administration, Manager, Operations Branch, ASO–530, Air ADDRESSES: PART 71Ð[AMENDED] Send comments on the Traffic Division, P.O. Box 20636, proposal in triplicate to: Federal Atlanta, Georgia 30320. Aviation Administration, Docket No. 1. The authority citation for 14 CFR Communications must identify the 96–ASO–36, Manager, Operations Part 71 continues to read as follows: notice number of this NPRM. Persons Branch, ASO–530, P.O. Box 20636, Authority: 49 U.S.C. 106(g); 40103, 40113, interested in being placed on a mailing Atlanta, GA 30320. 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– The official docket may be examined list for future NPRMs should also 1963 Comp., p. 389; 14 CFR 11.69. request a copy of Advisory Circular No. in the Office of the Assistant Chief § 71.1 [Amended] Counsel for Southern Region, Room 550, 11–2A which describes the application 1701 Columbia Avenue, College Park, procedure. 2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation Georgia 30337, telephone (404) 305– The Proposal 5586. Administration Order 7400.9D, Airspace Designations and Reporting Points, FOR FURTHER INFORMATION CONTACT: The FAA is considering an Benny L. McGlamery, Operations amendment to Part 71 of the Federal dated September 4, 1996, and effective Branch, Air Traffic Division, Federal Aviation Regulations (14 CFR Part 71) to September 16, 1996, is amended as Aviation Administration, P.O. Box establish Class E airspace at Hazard, KY. follows: 20636, Atlanta, GA 30320; telephone A VOR/DME RWY 14 and a GPS RWY Paragraph 6005 Class E airspace areas (404) 305–5570. 14 SIAP’s have been developed for extending upward from 700 feet above the Wendell H. Ford Airport. Controlled surface of the earth. SUPPLEMENTARY INFORMATION: airspace extending upward from 700 * * * * * Comments Invited feet AGL is needed to accommodate these SIAP’s and for IFR operations at ASO FL E5 Hazard, KY [New] Interested parties are invited to Wendell H. Ford Airport. The operating Wendell H. Ford Airport, KY participate in this proposed rulemaking status of the airport will change from (lat. 37°23′16′′N, long. 83°15′43′′W) by submitting such written data, views VFR to include IFR operations That airspace extending upward from 700 or arguments as they may desire. concurrent with publication of this feet above the surface within a 6.6-mile Comments that provide the factual basis SIAP. Class E airspace designations for radius of Wendell H. Ford Airport. supporting the views and suggestions airspace areas extending upward from * * * * * presented are particularly helpful in 700 feet or more above the surface are Issued in College Park, Georgia, on developing reasoned regulatory published in Paragraph 6005 of FAA November 21, 1996. decisions on the proposal. Comments Order 7400.9D dated September 4, 1996, Benny L. McGlamery, are specifically invited on the overall and effective September 16, 1996, which Acting Manager, Air Traffic Division, regulatory, aeronautical, economic, is incorporated by reference in 14 CFR Southern Region. environmental, and energy-related 71.1. The Class E airspace designation [FR Doc. 96–30644 Filed 11–29–96; 8:45 am] aspects of the proposal. listed in this document would be BILLING CODE 4910±13±M Communications should identify the published subsequently in the Order. airspace docket and be submitted in triplicate to the address listed above. The FAA has determined that this Commenters wishing the FAA to proposed regulation only involves an DEPARTMENT OF HEALTH AND acknowledge receipt of their comments established body of technical HUMAN SERVICES regulations for which frequent and on this notice must submit with those Food and Drug Administration comments a self-addressed, stamped routine amendments are necessary to postcard on which the following keep them operationally current. It, 21 CFR Part 892 statement is made: ‘‘Comments to therefore, (1) is not a ‘‘significant Airspace Docket No. 96–ASO–36.’’ The regulatory action’’ under Executive [Docket No. 96N±0320] postcard will be date/time stamped and Order 12866; (2) is not a ‘‘significant Radiology Devices; Proposed returned to the commenter. All rule’’ under DOT Regulatory Policies Classifications for Five Medical Image communications received before the and Procedures (44 FR 11034; February Management Devices specified closing date for comments will 26, 1979); and (3) does not warrant be considered before taking action on preparation of a regulatory evaluation as AGENCY: Food and Drug Administration, the proposed rule. The proposal the anticipated impact is so minimal. HHS. Since this is a routine matter that will contained in this notice may be changed ACTION: Proposed rule. in light of the comments received. All only affect air traffic procedures and air comments submitted will be available navigation, it is certified that this rule, SUMMARY: The Food and Drug for examination in the Office of the when promulgated, will not have a Administration is proposing to classify Assistant Chief Counsel for Southern significant economic impact on a five generic types of radiology devices Region, Room 550, 1701 Columbia substantial number of small entities that provide functions related to Avenue, College Park, GA 30337, both under the criteria of the Regulatory medical image communication, storage, before and after the closing date for Flexibility Act. processing, and display. Under the comments. A report summarizing each List of Subjects in 14 CFR Part 71 proposal, the medical image storage substantive public contact with FAA device and the medical image personnel concerned with this Airspace, Incorporation by reference, communications device would be rulemaking will be filed in the docket. Navigation (Air). classified into class I (general controls), 63770 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules and would be exempted from the recommendation from a device bed (21 CFR 892.1350), however, is requirement of premarket notification classification panel (an FDA advisory exempt only when the device is labeled when they do not use irreversible committee); (2) published the panel’s with the weight limit, is used with compression. The medical image recommendations for comment, along planar scanning only, and is not digitizer, the medical image hardcopy with a proposed regulation classifying intended for diagnostic x-ray use. the device; and (3) published a final device, and the picture archiving and B. Medical Image Management Devices communications system would be regulation classifying the device. classified into class II (special controls). A device that is first offered in Developments in electronic data The agency is publishing in this commercial distribution after May 28, communications and storage document the recommendations of the 1976, and that FDA determines to be technologies in recent years have led to Radiology Devices Panel regarding the substantially equivalent to a device the introduction of a number of classification of these devices. After classified under this scheme is radiological devices that are intended considering public comments on the classified into the same class as the for use in the management of medical proposed classifications, FDA will device to which it is substantially images after acquisition (Refs. 1 and 2). publish a final regulation classifying equivalent. The agency determines For digital modalities such as computed these devices. This action is being taken whether new devices are substantially tomography (CT), magnetic resonance to establish sufficient regulatory equivalent to previously offered devices imaging (MRI), ultrasound, digital controls that will provide reasonable by means of premarket notification subtraction angiography, and computed assurance of the safety and effectiveness procedures in section 510(k) of the act radiography, the images are acquired in of these devices. (21 U.S.C. 360(k)) and 21 CFR part 807. digital form and therefore lend A device that was not in commercial themselves immediately to digital image DATES: Written comments must be distribution prior to May 28, 1976, and management techniques. For analog submitted on or before March 3, 1997. that has not been found by FDA to be devices such as conventional x-ray, FDA proposes that any final regulation substantially equivalent to a legally devices have been developed to convert that may issue based on this proposal marketed device is classified film images into a digital format. become effective 30 days after the date automatically by statute (section 513(f) A number of acronyms are used to of its publication in the Federal of the act) into class III without any FDA describe medical image management Register. rulemaking proceedings. devices, such as picture archiving and ADDRESSES: Submit written comments Section 513(d)(2)(A) of the act communications systems (PACS) and to the Dockets Management Branch authorizes FDA to exempt, by image management and (HFA–305), Food and Drug regulation, a generic type of class I communications systems (IMACS). The Administration, 12420 Parklawn Dr., device from, among other things, the acronyms arise from the fact that the rm. 1–23, Rockville, MD 20857. requirement of premarket notification in devices are principally utilized for the FOR FURTHER INFORMATION CONTACT: section 510(k) of the act. Such an communication and storage of images. Loren A. Zaremba, Center for Devices exemption permits manufacturers to However, the digital format also and Radiological Health (HFZ–470), introduce into commercial distribution facilitates the application of image Food and Drug Administration, 9200 generic types of devices without first processing and enhancement Corporate Blvd., Rockville, MD 20850, submitting a premarket notification to techniques, and these techniques are 301–594–1212. FDA. If FDA has concerns only about now available as features on many of these products. SUPPLEMENTARY INFORMATION: certain types of changes to a particular class I device, the agency may grant a The digital format utilized in medical I. Background limited exemption from premarket image management devices provides a number of advantages, including the A. Classification of Medical Devices notification for that generic type of device. A limited exemption will ability to transmit and receive images The Federal Food, Drug, and Cosmetic specify the types of changes to the rapidly with high fidelity when used Act (the act), as amended by the device for which manufacturers are with digital communications Medical Device Amendments of 1976 required to submit a premarket technology. The devices, when utilized (the 1976 amendments) (Pub. L. 94–295) notification. For example, FDA may with electronic media such as random and the Safe Medical Devices Act of exempt a device from the requirement of access memory (RAM), hard disks, and 1990 (Pub. L. 101–629), established a premarket notification except when a optical disks, also allow compact comprehensive system for the regulation manufacturer intends to use a different storage with rapid retrieval capability of medical devices intended for human material. (Ref. 3). use. Section 513 of the act (21 U.S.C. To date, FDA has classified a total of However, image viewing is inherently 360c) established three classes of 70 generic types of radiology devices an analog process. Presently, image devices, depending on the regulatory (see 53 FR 1554, January 20, 1988; 54 FR display is performed using video controls needed to provide reasonable 5077, February 1, 1989; and 55 FR monitors or hardcopy, and both are assurance of their safety and 48436, November 20, 1990). With the subject to limitations (Refs. 4, 5, and 6). effectiveness. The three classes of exception of the magnetic resonance Current video monitors do not provide devices are class I (general controls), diagnostic device (21 CFR 892.1000), all brightness comparable to film/lightbox class II (special controls), and class III of these 70 generic devices are of a type viewing, which limits the number of (premarket approval). Procedures for the that were on the market before the discernable grey levels. Also, the original classification of devices that enactment of the 1976 amendments. Of highest resolution video monitors were in commercial distribution before the 70 generic types of radiology presently available are 2048 x 2048 May 28, 1976 (the date of enactment of devices, FDA exempted 8 from the pixels, and the majority in clinical use the 1976 amendments), are set forth in requirement of premarket notification are 1024 x 1024 pixels or less. section 513 of the act and in 21 CFR (54 FR 13826, April 5, 1989, and 59 FR Consequently, the number of 860.84. In accordance with these 63005, December 7, 1994); of the 8 addressable pixels on the video monitor procedures, devices are classified after exempt devices, FDA exempted 7 with can limit the available spatial resolution FDA has: (1) Received a no limitations. The nuclear scanning if that number is less than the matrix Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63771 size of the original image (which is agency to concentrate its resources on inaccurate data leading to improper always the case for an original x-ray film the evaluation of more critical products, diagnosis as risks to health associated image). Laser and video printers are and they will make it easier for with the use of these devices. The Panel available for converting digital images to manufacturers of the exempt devices to listed Digital Imaging and hardcopy, but this conversion process bring them to market. Communications in Medicine (DICOM), involves a sacrifice of the It should be noted that the Joint Photographic Experts Group communication and storage advantages classifications will usually not apply to (JPEG), and Society of Motion Picture of the digital technology. general purpose products, such as and Television Engineers (SMPTE) as Many of the medical image general purpose software, digital relevant standards. management products included in this communications devices, and storage At the August 29, 1994, Panel proposal did not exist when the devices, that are not intended for meeting, representatives of the National radiological device classifications were medical use. These products are not Electrical Manufacturers Association first proposed in 1982. However, FDA considered to be medical devices. (NEMA) stated opposition to the has generally treated them as However, when they are intended for establishment of a separate accessories to the imaging modalities use in the diagnosis of disease or other classification for picture archiving and (e.g., x-ray systems, CT scanners, and conditions, or in the cure, mitigation, or communications systems, MRI systems) with which they are used, prevention of disease, or are intended to recommending instead that FDA limit consistent with the identifications of affect the structure or any function of the classifications to components of these modalities. For example, the the body, they are devices within the such systems. However, the Panel medical image digitizer and medical meaning of section 201(h) of the act (21 dismissed this objection, noting that a image hardcopy device (multiformat U.S.C. 321(h)). Intended use may be manufacturer would have the option of camera) have been considered to be revealed by how the product is labeled, obtaining marketing clearance for the accessories to the stationary x-ray or if it is included as a component of a entire system or for individual system (21 CFR 892.1680) and system labeled for medical use. components. FDA believes that the computed tomography x-ray system (21 establishment of a classification for II. Panel Recommendations CFR 892.1750), respectively. PACS is needed because it is not A significant expansion in the The Radiological Devices Panel (the feasible to establish separate technical characteristics and functions Panel), an FDA advisory committee, met classifications for all possible PACS of medical image management products on August 29, 1994, to review the components. The classification for has taken place in recent years so that proposed classifications. The Panel PACS is intended to include those the identification of many of these concluded that the proposed devices associated with medical image products as accessories to a specific identifications are adequate, clear, and transmission, storage, processing, and radiological imaging modality is no sufficiently inclusive. display for which separate longer entirely accurate. For example, The Panel recommended that medical classifications have not been medical image hardcopy devices, image storage devices and medical established. Also, the PACS medical image storage devices, medical image communications devices be classification will apply to the majority image communications devices, and placed in Class I and that devices that of premarket notifications for medical picture archiving and communications do not use irreversible compression be image management devices which are systems are frequently intended for use exempted from the requirement of submitted for systems rather than for with most or all imaging modalities. The premarket notification. As its reason for individual components. NEMA and classification action described in this this recommendation, the Panel stated other interested parties may submit proposal would establish independent its belief that general controls are alternative classification schemes in classifications for medical image sufficient to provide reasonable response to this proposal. management products, consistent with assurance of the safety and effectiveness Summary minutes and a verbatim their multimodality use. of these devices. The Panel transcript of the Panel meeting have FDA originally developed a guidance recommended that devices that do not been placed in the Dockets Management document for the submission of use irreversible compression be Branch (address above). premarket notifications for PACS exempted from the requirement of devices in 1991, which the agency premarket notification because these III. Proposed Classifications updated in August 1993 (Ref. 7). This products are transparent to the user and Based upon the types of equipment document outlines the suggested FDA review of premarket notifications described in past and current premarket information for a premarket notification are unnecessary for the protection of the notifications, FDA has identified five for PACS devices and related public health. generic types of radiology devices that components. However, because no The Panel recommended that medical provide functions relating to medical specific classifications have been image digitizers, medical image image management: The medical image established for these devices, hardcopy devices, and picture archiving communications device, the medical uncertainty exists among manufacturers and communications systems be placed image storage device, the medical image regarding whether medical image in Class II. The Panel stated as reasons digitizer, the medical image hardcopy management products are medical for this recommendation the need for device, and the picture archiving and devices and whether premarket special controls, such as voluntary communications system. notifications are required. The performance standards and testing establishment of separate classifications guidelines, to ensure their safe and A. Medical Image Communications for medical image management devices effective use. The Panel based its Devices and Medical Image Storage will help clarify the regulatory status of recommendations on its review of the Devices these devices. At the same time, the studies cited in this document, The two most basic types of medical agency is proposing to exempt two of premeeting briefing materials, and on image management devices are these devices from the requirement of the Panel members’ personal knowledge communications and storage products. premarket notification, with limitations. of, and experience with, these devices. A medical image communications These exemptions will enable the The Panel listed inadequate or device provides electronic transfer of 63772 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules medical image data between medical information that is least likely to be coupled to the video output of the devices. It includes the physical useful to the reader, e.g., higher spatial imaging device, or to the output of a communications media (e.g., a twisted frequencies (fine detail). video camera placed over the film. pair or fiber optic cable), modems, The current version of the guidance CCD’s may be linear scanners or arrays. interfaces, and communications document for the submission of The various types of digitizers differ in protocols that are marketed as part of premarket notifications for PACS spatial resolution, range of film density the device. However, it does not include devices suggests specific labeling for that can be digitized, and grey level elements of the communications devices that use irreversible data discrimination capability. A discussion infrastructure, such as commercial compression. The guidance document of performance differences and telephone lines. suggests that video image displays and appropriate testing and quality control A medical image storage device is a hardcopy images that have been procedures for various types of device that provides electronic storage subjected to irreversible compression digitizers is in Ref. 12. and retrieval functions for medical should display a message stating that The most common examples of images. A medical image storage device irreversible compression has been hardcopy devices are multiformat may be comprised of microprocessors, applied and should state the cameras and laser printers. Multiformat interfaces, software, and one or more approximate compression ratio. This cameras produce copies by exposing storage media. Examples of storage message is consistent with the ACR film to an image on a video monitor. media include magnetic and optical Standard for Teleradiology (Ref. 11), Laser printers produce copies by discs, magnetic tape, and digital which requires that transmitting stations modulating a laser beam that is scanned memory (e.g., RAM). must have annotation capabilities that over the film. Recently, FDA has granted The safety and efficacy issues include the degree of compression. marketing clearance to devices that associated with these devices may be FDA currently receives and evaluates produce reflective paper hardcopy by categorized as data integrity and device a large number of premarket means of inkjet, laser/dry silver, and compatibility. An extremely high level notifications for medical image thermal processes. As with digitizers, of integrity has been achieved in communications and storage devices the quality of the hardcopy that can be electronic data transmission and storage each year. Many of these devices are obtained depends on the design of the through the use of modern error- transparent to the user, i.e., the input device. However, most of the standard checking methods, so that FDA does not and output data are identical. measures of image quality are applicable consider data integrity to be a Consequently, FDA is proposing that to hardcopy devices, and significant problem. they be placed in Class I and be recommendations have been made For a number of years device exempted from the requirement of regarding appropriate testing and compatibility was a serious concern for premarket notification. Granting these quality control procedures. A image communications and storage exemptions will allow the agency to description of such procedures using devices because many manufacturers make better use of its resources and thus the SMPTE test pattern is in Ref. 5. The utilized proprietary image file formats. better serve the public. use of this pattern is also recommended However, the American College of FDA is not proposing to exempt in the ACR Standard for Teleradiology. Radiology (ACR) and NEMA have devices that perform irreversible The performance characteristics of developed a protocol for sharing digital compression from the requirement of both digitizers and hardcopy devices images between medical devices called premarket notification. At present there can have a significant influence on DICOM. This standard (Ref. 8) has been is a great deal of activity in the diagnostic capability and patient care. incorporated by a number of development and clinical evaluation of Also, adequate quality control manufacturers into their new products algorithms for the irreversible procedures are needed to ensure their and several companies are offering compression of medical image data. continued performance. FDA is working interfaces to convert the proprietary Review of premarket notifications for with voluntary standards groups to image formats utilized in older devices that use irreversible develop standardized specifications, test equipment to the DICOM format. compression will provide FDA with the methods, and quality control procedures Consequently, the compatibility issue is opportunity to evaluate these algorithms for digitizers and hardcopy devices. The of decreasing concern. on an individual basis to ensure that attention that has been given to the However, in recent years there has their suitability for use in the medical problems associated with performance been a marked increase in the number application has been demonstrated. and quality control in the literature and of devices that utilize data compression by standards groups indicates that techniques to reduce image B. Medical Image Digitizers and special controls (e.g., voluntary transmission time and data storage Hardcopy Devices standards) are needed to ensure the requirements (Ref. 9). The utilization of The medical image digitizer is a safety and efficacy of these devices. data compression has been accelerated device that converts an analog medical Consequently, FDA is proposing that by the development of the JPEG image into a digital format. Most they be placed in Class II. standard and the commercial radiological examinations are still availability of microprocessors for conducted with x-ray film as the image C. Picture Archiving and performing JPEG compression (Ref. 10). receptor and digitizers provide a means Communications System Data compression methods are of two for converting the film information to A picture archiving and types, reversible or irreversible. digital form. Medical image hardcopy communications system is defined in Reversible data compression methods devices provide the opposite function, this proposal as a device that provides are such that the original image data i.e., they convert an image from an one or more capabilities relating to the may be retrieved following the electronic form to a visual printed acceptance, transfer, display, storage, compression process. With irreversible record. and processing of medical images. This data compression methods, portions of The principal types of digitizers classification is intended to include the original data are irretrievably lost. currently in use are frame grabbers, products that combine several functions Irreversible data compression is charge coupled devices (CCD’s), and and that are marketed as PACS systems. generally done so as to sacrifice laser scanners. Frame grabbers may be It would include systems ranging in Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63773 complexity from teleradiology products standard display function for video Standard,’’ Radiographics, vol. 12, No. 2, (small, portable devices that transmit monitors (Ref. 14). 1992. images over phone lines and enable an FDA is proposing to classify picture 9. Zaremba, L. A., and R. A. Phillips, on-call radiologist to review images in archiving and communication systems ‘‘Image Compression—Regulatory Issues and Policies,’’ presented at the 35th Annual his/her home) to large fixed systems that into Class II. FDA believes that special Meeting of the American Association of utilize fiber optic networks and are controls such as standardized Physicists in Medicine, Washington, DC, capable of transmitting and storing performance specifications, August 8–12, 1993. images for an entire hospital or group of measurement methods, and quality 10. Wallace, G. K., ‘‘The JPEG Still Picture hospitals. control procedures are necessary to Compression Standard,’’ Communications of Another common example of this assure the safety and efficacy of these the ACM, vol. 34, No. 4, April 1991. device is the medical image devices. Documents addressing these 11. ‘‘ACR Standard for Teleradiology,’’ workstation, which is generally subjects have been or are currently available from the American College of comprised of a computer, video Radiology, Reston, VA. being developed by the ACR, NEMA, 12. Trueblood, J. H., S. E. Burch, K. monitor, and storage device. The and EIA. Kearfott, and K. W. Brooks, ‘‘Radiographic computer generally utilizes software If a PACS device includes Film Digitization,’’ in ‘‘Digital Imaging, related to data communications, file components that would otherwise be Medical Physics Monograph 22,’’ edited by management, and image processing. The exempt from the requirement of W. R. Hendee and J. H. Trueblood, Medical classification is also intended to include premarket notification (e.g., general Physics Publishing, Madison, WI, 1993. devices which provide image-related purpose, communication, or storage 13. ‘‘Display Monitor Measurement capabilities, and for which there are no devices), the premarket notification for Methods Under Discussion by EIA other specific classifications, such as the system would not be required to (Electronic Industries Association) image processing software and video Committee JT–20,’’ National Information include a demonstration of substantial Display Laboratory, Princeton, NJ. monitors. equivalence for the exempt components. 14. Blume, H., S. Daly, and E. Juka, Software is an important component IV. References ‘‘Presentation of Medical Images on CRT of a PACS device. It is generally Displays: A Renewed Proposal for a Display responsible for data file organization The following references have been Function Standard,’’ Proceedings of the SPIE, and also may provide image processing placed on display in the Dockets vol. 1987, pp. 215–231, 1993. functions such as filtering (e.g., edge Management Branch (address above) V. Environmental Impact enhancement), measurement (e.g., and may be seen by interested persons distance, area, and volume between 9 a.m. and 4 p.m., Monday The agency has determined under 21 determinations), and special image through Friday. CFR 25.24(e)(2) that this action is of a displays (three dimensional surface and 1. ‘‘PACS, A NEMA Primer,’’ published by type that does not individually or volume rendering). Stand-alone the National Electrical Manufacturer’s cumulatively have a significant effect on software marketed for use in PACS Association, compiled by the members of the the human environment. Therefore, devices would be included in this MEDPACS Section of the Diagnostic Imaging neither an environmental assessment classification unless it is general and Therapy Systems Division, November nor an environmental impact statement 1988. purpose software that is not intended 2. Choplin, R. H., J. M. Boehme, and C. D. is required. for a medical use. Maynard, ‘‘Picture Archiving and VI. Analysis of Impacts Video monitors are also an important Communications Systems: An Overview,’’ component of PACS devices. Radiographics, vol. 12, No. 1, 1992. FDA has examined the impact of the Manufacturers have generally not 3. Frost, M. M., J. C. Honeyman, and E. V. proposed rule under Executive Order submitted separate premarket Staab, ‘‘Image Archival Technologies,’’ 12866 and the Regulatory Flexibility Act notifications for monitors, but rather Radiographics, vol. 12, No. 2, 1992. (Pub. L. 96–354). Executive Order 12866 have included them in submissions for 4. Dwyer, S. J. et al., ‘‘Performance directs agencies to assess all costs and devices such as workstations. Some Characteristics and Image Fidelity of Gray- benefits of available regulatory video monitors are general purpose Scale Monitors,’’ Radiographics, vol. 12, No. alternatives and, when regulation is 4, 1992. consumer products. However, most 5. Gray, J. E. et al., ‘‘Multiformat Video and necessary, to select regulatory monitors used in medical imaging are Laser Cameras: History, Design approaches that maximize net benefits specialized devices with high brightness Considerations, Acceptance Testing and (including potential economic, and spatial resolution (1,000 lines or Quality Control,’’ Report of AAPM Diagnostic environmental, public health and safety, greater). These monitors can take the X-ray Imaging Committee Task Group No. 1, and other advantages; distributive place of film and their characteristics Medical Physics, vol. 20, No. 2, Part 1, impacts; and equity). The agency can have a significant effect on the March/April 1993. believes that this proposed rule is ability of health professionals to make a 6. Kato, H., ‘‘Hard- and Soft-Copy Image consistent with the regulatory Quality,’’ in ‘‘Syllabus: A Categorical Course diagnosis. in Physics—Physical and Technical Aspects philosophy and principles identified in A discussion of the important of Angiography and Interventional the Executive Order. In addition, the performance characteristics of video Radiology,’’ edited by Stephen Balter and proposed rule is not a significant monitors (e.g., luminance, dynamic Thomas B. Shope, presented at the 81st regulatory action as defined by the range, distortion, resolution, and noise) Scientific Assembly and Annual Meeting of Executive Order and therefore is not and the need for standards is in Ref. 4. the Radiological Society of North America, subject to review under the Executive The National Information Display November 26–December 1, 1995, RSNA Order. Laboratory is currently working with Publications, Oak Brook, IL. The Regulatory Flexibility Act Committee JT–20 of the Electronic 7. ‘‘Guidance for Content and Review of requires agencies to analyze regulatory Industries Association (EIA) to develop 510(k) Notifications for Picture Archiving options that would minimize any and Communications Systems (PACS) and standardized procedures for measuring Related Devices,’’ Office of Device significant impact of a rule on small the performance of cathode ray tube Evaluation, Center for Devices and entities. Because the agency believes (video monitor) displays (Ref. 13). Also, Radiological Health, August 1993. only a small number of firms will be Working Group XI of the ACR/NEMA 8. Bidgood, W. D., and S. C. Horii, affected by this rule when finalized, and Committee is currently developing a ‘‘Introduction to the ACR–NEMA DICOM because the burdens associated with the 63774 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules classification of these devices into Class medium, modems, interfaces, and a FEDERAL COMMUNICATIONS I and Class II, as proposed, is communications protocol. COMMISSION significantly less than those associated (b) Classification. Class I. The device 47 CFR Chapter I with the alternative classification into is exempt from the premarket Class III, the agency certifies that the notification procedures in subpart E of [CC Docket 96±237; FCC 96±456] proposed rule will not have a significant part 807 of this chapter only when the economic impact on a substantial device transfers images without Implementation of Infrastructure number of small entities. Therefore, performing irreversible data Sharing Provisions in the under the Regulatory Flexibility Act, no Telecommunications Act of 1996 further analysis is required. compression. § 892.2030 Medical image digitizer. AGENCY: Federal Communications VII. Request for Comments Commission. Interested persons may, on or before (a) Identification. A medical image ACTION: Proposed rule. March 3, 1997, submit to the Dockets digitizer is a device intended to convert Management Branch (address above) an analog medical image into a digital SUMMARY: On November 22, 1996, the written comments regarding this format. Examples include systems Commission adopted a Notice of proposal. Two copies of any comments employing video frame grabbers, and Proposed Rulemaking, as part of the are to be submitted, except that scanners which use lasers or charge- Commission’s implementation of the individuals may submit one copy. coupled devices. Telecommunications Act of 1996 (the 1996 Act), to initiate a rulemaking Comments are to be identified with the (b) Classification. Class II. docket number found in brackets in the proceeding to implement new Section heading of this document. Received § 892.2040 Medical image hardcopy 259 (Infrastructure Sharing) of the comments may be seen in the office device. Communications Act of 1934 (the Act), above between 9 a.m. and 4 p.m., as amended. Section 259 generally Monday through Friday. (a) Identification. A medical image requires an incumbent local exchange hardcopy device is a device that carrier (incumbent LEC) to make List of Subjects in 21 CFR Part 892 produces a visible printed record of a available to a defined ‘‘qualifying Medical devices, Radiation medical image and associated carrier,’’ such ‘‘public switched network protection, X-rays. identification information. Examples infrastructure, technology, information, Therefore, under the Federal Food, include multiformat cameras and laser and telecommunications facilities and Drug, and Cosmetic Act and under printers. functions’’ as the qualifying carrier may authority delegated to the Commissioner (b) Classification. Class II. request, in service areas where the of Food and Drugs, it is proposed that qualifying carrier has requested and 21 CFR part 892 be amended as follows: § 892.2050 Picture archiving and obtained designation as an eligible communications system. carrier under Section 214(e). Section PART 892ÐRADIOLOGY DEVICES (a) Identification. A picture archiving 259(a) directs the Commission to prescribe regulations that implement 1. The authority citation for 21 CFR and communications system is a device this requirement within one year after part 892 continues to read as follows: that provides one or more capabilities the date of enactment of the 1996 Act, relating to the acceptance, transfer, Authority: Secs. 501, 510, 513, 515, 520, i.e., by February 8, 1997. 701 of the Federal Food, Drug, and Cosmetic display, storage, and digital processing DATES: Act (21 U.S.C. 351, 360, 360c, 360e, 360j, of medical images. Its hardware Comments are due on or before 371). components may include workstations, December 20, 1996. Reply comments are due on or before January 3, 1997. digitizers, communications devices, 2. New §§ 892.2010, 892.2020, Written comments by the public on the computers, video monitors, magnetic, 892.2030, 892.2040, and 892.2050 are proposed and/or modified information added to subpart B to read as follows: optical disk, or other digital data storage collections are due on or before devices, and hardcopy devices. The § 892.2010 Medical image storage device. December 20, 1996. Written comments software components may provide must be submitted by the Office of (a) Identification. A medical image functions for performing operations Management and Budget (OMB) on the storage device is a device that provides related to image manipulation, proposed and/or modified information electronic storage and retrieval enhancement, compression, or collections on or before January 31, functions for medical images. Examples quantification. 1997. include devices employing magnetic and optical discs, magnetic tape, and (b) Classification. Class II. ADDRESSES: Comments and reply digital memory. Dated: November 17, 1996. comments should be sent to the Office of the Secretary, Federal (b) Classification. Class I. The device D.B. Burlington, Communications Commission, 1919 M is exempt from the premarket Director, Center for Devices and Radiological notification procedures in subpart E of Street, N.W., Suite 222, Washington, Health. D.C. 20554, with a copy to Scott part 807 of this chapter only when the [FR Doc. 96–30650 Filed 11–29–96; 8:45 am] device stores images without performing Bergmann of the Common Carrier irreversible data compression. BILLING CODE 4160±01±F Bureau, Federal Communications Commission, 2033 M Street, N.W., Suite § 892.2020 Medical image communications 500, Washington, D.C. 20554. Parties device. should also file one copy of any (a) Identification. A medical image documents filed in this docket with the communications device provides Commission’s copy contractor, electronic transfer of medical image data International Transcription Services, between medical devices. It may Inc., 2100 M Street, N.W., Suite 140, include a physical communications Washington, D.C. 20037. In addition to Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63775 filing comments with the Secretary, a collections contained in this Written comments by the public on copy of any comments on the proceeding. The complete text also may the proposed and/or modified information collections contained be purchased from the Commission’s information collections are due herein should be submitted to Dorothy copy contractor, International December 20, 1996, and reply comments Conway, Federal Communications Transcription Service, Inc. (202) 857– are due January 3, 1997. Written Commission, Room 234, 1919 M Street, 3800, 2100 M Street, N.W., Suite 140, comments must be submitted by the N.W., Washington, D.C. 20554, or via Washington, D.C. 20037. Office of Management and Budget the Internet to [email protected], and to (OMB) on the proposed and/or modified Paperwork Reduction Act Timothy Fain, OMB Desk Officer, 10236 information collections on or before 60 NEOB, 725 Seventeenth Street, N.W., This Notice of Proposed Rulemaking days after date of publication in the Washington, D.C. 20503 or via the contains a proposed information Federal Register. If you anticipate that Internet to [email protected]. collection subject to the Paperwork you will be submitting comments, but FOR FURTHER INFORMATION CONTACT: Reduction Act of 1995 (PRA). It has find it difficult to do so within the Thomas J. Beers, Deputy Chief, Industry been submitted to the Office of period of time allowed by this notice, Analysis Division, Common Carrier Management and Budget (OMB) for you should advise the contact listed Bureau, at (202) 418–0952. For review under Section 3507(d) of the below as soon as possible. additional information concerning the PRA. OMB, the general public, and In addition to filing comments with information collections proposed in the other Federal agencies are invited to the Secretary, a copy of any comments Notice of Proposed Rulemaking contact comment on the proposed information on the information collections Dorothy Conway, at (202) 418–0217, or collections contained in this contained herein should be submitted to via the Internet to [email protected]. proceeding. Dorothy Conway, Federal SUPPLEMENTARY INFORMATION: This is a The Commission, as part of its Communications Commission, Room summary of the Commission’s Notice of continuing effort to reduce paperwork 234, 1919 M Street, N.W., Washington, Proposed Rulemaking adopted burdens, invites the general public and D.C. 20554, or via the Internet to November 22, 1996 and released the Office of Management and Budget to [email protected] and to Timothy Fain, November 22, 1996 (FCC 96–456). The comment on the information collections OMB Desk Officer, 10236 NEOB, 725— full text of this Notice of Proposed in this Notice of Proposed Rulemaking. 17th Street, N.W. Washington, D.C. Rulemaking is available for inspection Comments should address: (a) whether 20503 or via the Internet to and copying during normal business the proposed collection of information [email protected] hours in the FCC Reference Center, is necessary for the proper performance OMB Approval Number: None. of the functions of the Commission, Room 239, 1919 M Street, Washington, Title: Policy and Rules Concerning the including whether the information shall D.C. 20554. This Notice of Proposed Implementation of Infrastructure have practical utility; (b) the accuracy of Rulemaking contains proposed and/or Sharing Provisions in the modified information collections subject the Commission’s burden estimates; (c) Telecommunications Act of 1996, CC to the Paperwork Reduction Act of 1995 ways to enhance the quality, utility, and Docket 96–237. (PRA). It has been submitted to the clarity of the information collected; and Office of Management and Budget (d) ways to minimize the burden of Form Number: Not Applicable. (OMB) for review under the PRA. OMB, collection of information on Type of Review: New Collection. the general public, and other Federal respondents, including the use of Respondents: Business or other for agencies are invited to comment on the automated collection techniques or profit, including small businesses. proposed and/or modified information other forms of information technology. Burden Estimate:

Respond- Est. time per Annual bur- Section/Title ents resp. Frequency den

(1) Section 259(b)(7) Filing of Tariffs, Contracts or Other Arrangements 75 1 hour ...... 5 per year ...... 375 hours. * * *. (2) Section 259(c) Information Concerning Deployment of New Services 75 2 hours ...... 12 per year ...... 1800 hours. and Equipment * * *.

Total Annual Burden: 2175 total addition, the information collected Summary of the Notice of Proposed hours. pursuant to Section 259(b)(7) will make Rulemaking Estimated Costs Per Respondent: available for public inspection any $0.00. tariffs, contracts or other arrangements 1. The Commission adopted the Needs and Uses: The information showing the conditions under which the Notice of Proposed Rulemaking (NPRM), collections for which approval is sought incumbent LEC is making available as part of its implementation of the Telecommunications Act of 1996 (the are contained in new Section 259 public switched network infrastructure 1996 Act), to initiate a rulemaking (‘‘Infrastructure Sharing’’) of the and functions pursuant to Section 259. proceeding to implement new Section Communications Act of 1934 (the Act), Failing to collect the information would as amended. The information 259 (‘‘Infrastructure Sharing’’) of the violate the language and the intent of collections proposed pursuant to Communications Act of 1934 (the Act), the 1996 Act to ensure that access to the Section 259(c) in this Notice of as amended. Section 259 generally Proposed Rulemaking will provide evolving, advanced telecommunications requires an incumbent local exchange notice to third parties (qualifying infrastructure would be made broadly carrier (incumbent LEC) to make carriers) of changes in the incumbent available in all regions of the nation at available to a defined ‘‘qualifying local exchange carrier’s network that just, reasonable and affordable rates. carrier,’’ such ‘‘public switched network might affect the parties’ ability to fully infrastructure, technology, information, benefit from Section 259 agreements. In and telecommunications facilities and 63776 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules functions’’ as the qualifying carrier may establish conditions to promote definition of universal service that will request, in service areas where the cooperation between incumbent LECs be decided by the Commission in the qualifying carrier has requested and and qualifying carriers. The universal service proceeding (i.e., after obtained designation as an eligible Commission may not require incumbent the Federal-State Joint Board proffers its carrier under Section 214(e). Section LECs to make available ‘‘services or recommendations in early November 259(a) directs the Commission to access’’ that would be provided to 1996). In other instances, however, no prescribe regulations that implement consumers by the qualifying carrier in tentative conclusions are proffered. For this requirement within one year after the incumbent LEC’s ‘‘telephone example, in construing Section 259(b)(4) the date of enactment of the 1996 Act, exchange area.’’ The Commission must the Commission must determine how to i.e., by February 8, 1997. also require the incumbent LEC to file ensure that qualifying carriers benefit 2. The NPRM poses questions relating with the Commission or state ‘‘any from economies of scale and scope to the scope of required infrastructure tariffs, contracts, or other arrangements enjoyed by incumbent LECs. To achieve sharing (Section 259(a)), and to the that show rates, terms, and conditions’’ this, the NPRM asks whether Section specific directives Congress has under which the incumbent LEC is 259 conveys to the Commission the imposed on the Commission regarding making available ‘‘public switched power to establish pricing rules or the terms and conditions of network infrastructure and functions’’ guidelines for infrastructure, implementing regulations (Section pursuant to Section 259. technology, information, and 259(b)), network service and equipment 4. Section 259(c) requires incumbent telecommunications facilities and information sharing (Section 259(c)), local exchange carriers that have functions. and the definition of qualifying carriers entered into infrastructure sharing (Section 259(d)). For example, the Initial Regulatory Flexibility Act agreements to ‘‘provide to each party to Analysis NPRM asks whether Section 259 was such agreement timely information on intended by Congress to provide the planned deployment of 6. As required by Section 603 of the opportunities for small carriers that lack telecommunications services and Regulatory Flexibility Act (RFA), 5 an extensive infrastructure in order to equipment, including any software or U.S.C. 603, the Commission has promote the pro-competitive and upgrades of software integral to the use prepared the following Initial universal service goals of the 1996 Act. or operation of such Regulatory Flexibility Analysis (IRFA) The NPRM tentatively concludes that telecommunications equipment.’’ of the expected significant economic Section 259 is complementary to other Section 259(d) defines a ‘‘qualifying impact on small entities of the policies Commission pro-competitive carrier’’ as a telecommunications carrier and rules proposed in the Notice of undertakings implementing Sections that: Proposed Rulemaking, Implementation 251, 252 and 254 of the Act, and that of Infrastructure Sharing Provisions in implementing regulations for Section (1) lacks economies of scale or scope, as the Telecommunications Act of 1996 determined in accordance with regulations 259 should, accordingly, reflect and not prescribed by the Commission pursuant to (NPRM or Infrastructure Sharing contradict Commission decisions in the this section; and (2) offers telephone NPRM). Written public comments are CC Docket 96–45 Universal Service exchange service, exchange access, and any requested on this IRFA. These proceeding. other service that is included in universal comments must be filed in accordance 3. Section 259(a) directs the service, to all consumers without preference with the same filing deadlines set for Commission, within one year after the throughout the service area for which such comments on the other issues in the date of enactment of the 1996 Act, to carrier has been designated as an eligible NPRM but they must have a separate prescribe regulations that require telecommunications carrier under Section and distinct heading designating them 214(e). incumbent LECs to make certain ‘‘public as responses to this IRFA. The Secretary switched network infrastructure, 47 U.S.C. 259(d)(1), (d)(2). Section shall send a copy of this Infrastructure technology, information, and 214(e) provides that a common carrier Sharing NPRM including the IRFA, set telecommunications facilities and designated as an eligible out below, to the Chief Counsel for functions’’ available to any qualifying telecommunications carrier shall be Advocacy of the Small Business carrier in the service area in which the eligible to receive universal service Administration in accordance with qualifying carrier has requested and support and shall, throughout the Section 603(a) of the Regulatory obtained designation as an eligible service area for which designation is Flexibility Act. carrier under Section 214(e). Section received, offer services that are 7. Need for and Objectives of the 259(b) directs the Commission to refrain supported by federal universal service Proposed Rules: The Commission is from requiring actions by incumbent support mechanisms promulgated under issuing this NPRM to implement the LECs that are economically Section 254(c), either by using its own infrastructure sharing provisions in unreasonable or contrary to the public facilities or a combination of its own Section 259 of the 1934 Act, as added interest. The Commission may permit, facilities and resale of another carrier’s by the Telecommunications Act of 1996. but shall not require, joint ownership or services. Section 214(e) also states how Section 259 directs the Commission, operation of public switched network eligible telecommunications carriers within one year after the date of infrastructure and services, and must shall be designated. enactment of the 1996 Act, to prescribe ensure that incumbent LECs are not 5. The NPRM contains a detailed set regulations that require incumbent LECs treated as common carriers by virtue of of questions to allow commenters to to make certain ‘‘public switched exercising their Section 259 obligations. assist the Commission in interpreting network infrastructure, technology, Section 259(b) further directs the these provisions. In some instances, the information, and telecommunications Commission to establish guidelines draft NPRM sets out tentative facilities and functions’’ available to any implementing infrastructure sharing conclusions. For example, the NPRM qualifying carrier in the service area in pursuant to just and reasonable terms tentatively concludes that it would be which the qualifying carrier has and conditions that permit the inappropriate to construe that part of requested and obtained designation as qualifying carrier to ‘‘fully benefit’’ from the definition of qualifying carrier set an eligible carrier under Section 214(e). the economies of scale and scope of the out in Section 259(d)(2) because that 8. Legal Basis for the Proposed Rules: incumbent LEC. The Commission must determination depends upon the The legal basis for action as proposed in Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63777 the NPRM is Sections 1–5, 201–205, We seek comment on the conclusions that there are fewer than 1,347 small 218, and 259 of the Communications above. LECs (including small incumbent LECs) Act of 1934 as amended, 47 U.S.C. 151– 12. We are first required to estimate that may be affected by the actions 155, 201–205, 218, and 259. the number of small incumbent LECs proposed in this NPRM. 9. Description and Estimate of the that may be affected by the proposed 14. The proposals in this NPRM apply Number of Small Entities to Which the decisions and rules. Although neither not only to the providing incumbent Proposed Rules Will Apply: For the the Commission nor the SBA has LECs that are required to enter into purposes of this analysis, we examined developed a definition of small infrastructure sharing agreements the relevant definition of ‘‘small entity’’ providers of local exchange services, we pursuant to Section 259, but also to or ‘‘small business’’ and applied this have two methodologies available to us qualifying carriers. Qualifying carriers definition to identify those entities that for making these estimates. The closest are telecommunications carriers that may be affected by the rules proposed applicable definition under SBA rules is meet the two requirements set out in in this NPRM. The RFA defines a ‘‘small for telephone communications Section 259(d). Because Section business’’ to be the same as a ‘‘small companies other than radiotelephone 259(d)(1) limits qualifying carriers to business concern’’ under the Small (wireless) companies (SIC 4813) those carriers that ‘‘lack economies of Business Act, 15 U.S.C. § 632, unless the (Telephone Communications, Except scale or scope,’’ it is likely that there Commission has developed one or more Radiotelephone). The Census Bureau will be small business concerns affected definitions that are appropriate to its reports that there were 2,321 such by the rules proposed in this NPRM. We activities. Under the Small Business telephone companies in operation for at note, however, that the definition of Act, a ‘‘small business concern’’ is one least one year at the end of 1992. ‘‘qualifying carriers’’ is dependent on that: (1) is independently owned and According to the SBA’s definition, a the Commission’s decisions in the operated; (2) is not dominant in its field non-radiotelephone company qualifies universal service proceeding. Until the of operation; and (3) meets any as a ‘‘small entity’’ when it employs Commission issues an order pursuant to additional criteria established by the fewer than 1,500 persons. Of the 2,321 the Universal Service NPRM that Small Business Administration (SBA). non-radiotelephone companies listed by addresses Section 214(e) eligibility Moreover, the SBA has defined a small the Census Bureau, 2,295 companies (or, issues, it is not feasible to define the business for Standard Industrial all but 26) were reported to have fewer number of ‘‘qualifying carriers’’ that Classification (SIC) categories 4812 than 1,000 employees. Thus, at least may be ‘‘small business concerns.’’ (Radiotelephone Communications) and 2,295 non-radiotelephone companies 15. Description of Projected 4813 (Telephone Communications, might qualify as small incumbent LECs Reporting, Recordkeeping and Other Except Radiotelephone) to be small or small entities based on these Compliance Requirements: As discussed entities when they have fewer than employment statistics. However, in Part III. A. of the NPRM, incumbent 1,500 employees. because it seems certain that some of LECs may be required to make available 10. Section 259 of the 1934 Act, as these carriers are not independently to defined qualifying carriers ‘‘such added by the 1996 Act, establishes a owned and operated, this figure public switched network infrastructure, variety of infrastructure sharing necessarily overstates the actual number technology, information, and obligations. Many of the obligations of non-radiotelephone companies that telecommunications facilities and proposed in the Infrastructure Sharing would qualify as ‘‘small business functions as may be requested by such NPRM would apply solely to providing concerns’’ under the SBA’s definition. qualifying carrier[s].’’ We believe that incumbent LECs. Also potentially Consequently, we estimate using this compliance with such requests may affected by these proposed rules are the methodology that there are fewer than require the use of legal, engineering, class of carriers designated as 2,295 small entity telephone technical, operational, and ‘‘qualifying carriers’’ under Section 259. communications companies (other than administrative skills. In addition, Qualifying carriers will likely include radiotelephone companies) that may be incumbent LECs are required to file small local exchange carriers and many affected by the proposed decisions and with the Commission or state for public of these carriers are likely to be small rules and we seek comment on this inspection any tariffs, contracts or other business concerns for the purposes of conclusion. arrangements showing the conditions RFA analysis. 13. Our alternative method for under which an incumbent LEC is 11. Consistent with our prior practice, estimation utilizes the data that we making available public switched we shall continue to exclude small collect annually in connection with the infrastructure and functions. Should a incumbent LECs from the definition of Telecommunications Relay Service small incumbent LEC be subject to this ‘‘small entity’’ and ‘‘small business (TRS). This data provides us with the requirement, we anticipate that it will concerns’’ for the purpose of this IRFA. most reliable source of information of require use of legal and administrative We believe that incumbent LECs do not which we are aware regarding the skills. The statute also requires qualify as small businesses because they number of LECs nationwide. According incumbent LECs to provide ‘‘timely are dominant in their field of operation. to our most recent data, 1,347 information on the planned deployment However, out of an abundance of companies reported that they were of telecommunications services and caution and prudence, in this IRFA we engaged in the provision of local equipment’’ to any parties to shall include a discussion of the number exchange services. Although it seems infrastructure sharing agreements. of small incumbent LECs affected by certain that some of these carriers are Should a small incumbent LEC be these proposed rules to remove any not independently owned and operated subject to this requirement, we possible issue of RFA compliance. (prong 1 of the SBA definition of small anticipate that it will require use of Therefore, we shall use the distinct term business concerns as set out supra), or engineering, technical, operational, and ‘‘small incumbent LECs’’ to refer to any have more than 1,500 employees (prong administrative skills. We seek comment incumbent LECs that conceivably might 3), we are unable at this time to estimate on the impact of these proposals on be defined by the SBA at a subsequent with greater precision the number of small entities. We seek comment on date as ‘‘small business concerns’’ incumbent LECs that would qualify as whether the entities subject to Section despite our conclusions that they are small business concerns under SBA’s 259 will otherwise have the personnel dominant in their fields of operation. definition. Consequently, we estimate or other resources to meet Section 259 63778 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules requirements as a result of their efforts Commission to establish guidelines 47 CFR Chapter I to comply with other provisions of the implementing infrastructure sharing on [CC Docket No. 96±45: FCC 96J±3] 1996 Act, i.e., Section 251. just and reasonable terms where 16. Significant Alternatives to qualifying carriers ‘‘fully benefit’’ from Universal Service Proposed Rules Which Minimize the economies of scale and scope Significant Economic Impact on Small enjoyed by incumbents, and to act so as AGENCY: Federal Communications Entities and Accomplish Stated to promote cooperation between LECs. Commission. Objectives: We anticipate that the In construing Section 259(b)(4), we ask ACTION: Recommended decision. impact of this proceeding should be whether Section 259 conveys to the beneficial to small businesses since they Commission the power to establish SUMMARY: On November 7, 1996, the may be able to share infrastructure with pricing rules or guidelines for public Federal-State Joint Board adopted a larger incumbent LECs, in certain switched network infrastructure, Recommended Decision, as required by circumstances, enabling small carriers technology, information, and section 254 of the Telecommunications to provide telecommunication services telecommunications facilities and Act of 1996 (‘‘1996 Act’’), regarding or information services that they functions. We also ask questions about universal service. In the decision, the otherwise might not be able to provide how such pricing authority could be Joint Board made numerous without building or buying their own implemented. recommendations on universal service facilities. The Infrastructure Sharing issues including, for example, issues 19. Section 259(c) requires local NPRM contains a detailed set of relating to: universal service principles; exchange carriers that have entered into questions to allow commenters to assist services eligible for support; support infrastructure sharing agreements to the Commission in interpreting Section mechanisms for rural, insular, and high provide ‘‘timely information on the 259, including the following significant cost areas; support for low income planned deployment of provisions of Section 259 that may consumers; affordability; support for telecommunications services and impact small entities. schools, libraries, and health care equipment . . . .’’ In the NPRM, we seek 17. Section 259(a) requires the providers; administration of support comment on how the Commission both Commission to adopt regulations to mechanisms; and common line cost can implement Section 259(c) and ensure that incumbent LECs make recovery. The Commission seeks promote the goal shared by Congress available, to defined qualifying carriers, comment on the Recommended and the Commission of reducing ‘‘public switched network Decision. infrastructure, technology, information, duplicative administrative DATES: Comments should be filed on or and telecommunications facilities and requirements. before December 16, 1996 and Reply functions.’’ Qualifying carriers are 20. Federal Rules That May Duplicate, Comments on or before January 10, defined in Section 259(d) as carriers that Overlap, or Conflict With the Proposed 1997. lack economies of scale or scope and Rules: The NPRM tentatively concludes ADDRESSES: that request and obtain designation to that the implementation of Section 259 Interested parties must file receive universal service support should be complementary to the an original and four copies of their pursuant to Section 214(e). As a result implementation of other sections of the comments with the Office of the of this limitation on the carriers that 1996 Act and asks questions designed to Secretary, Federal Communications qualify for Section 259 sharing explore that complementary Commission, Room 222, 1919 M Street, arrangements, we ask whether, in fact, relationship. The NPRM, for example, N.W., Washington, D.C. 20554. the purpose of Section 259 is to benefit addresses the relationship between the Comments should reference CC Docket small carriers. In addition, we ask infrastructure sharing requirements in No. 96–45. Parties should send one copy whether there is a relationship between Section 259 and the competitive access of their comments to the Commission’s carrier size, however defined, and a requirements in Sections 251 and 252. copy contractor, International determination that the carrier either has Transcription Service, Room 140, 2100 or lacks economies of scale or scope. Ordering Clauses M Street, N.W., Washington, D.C. 20037. Additionally, we ask whether certain Parties must also serve copies of their Accordingly, It is ordered that incumbent LECs could lack economies comments on the individuals identified pursuant to Sections 1–5, 201–205, 218 of scale or scope, and, thus, meet the in the attached service list. After filing, Section 259(d)(1) definition of and 259 of the Communications Act of comments will be available for public qualifying carrier and, nevertheless, also 1934 as amended, 47 U.S.C. §§ 151–155, inspection during regular business be required to provide ‘‘public switched 201–205, 218 and 259, a Notice of hours in the FCC Reference Center, network infrastructure, technology, Proposed Rulemaking is hereby Room 239, 1919 M Street, N.W., information, and telecommunications adopted. Washington, D.C. 20554. facilities and functions’’ to other It is further ordered that the Secretary Parties are also asked to submit qualifying carriers. shall send a copy of this Notice of comments on diskette. Diskette 18. In addition, the statute directs the Proposed Rulemaking, including the submissions would be in addition to Commission to refrain from requiring regulatory flexibility certification, to the and not a substitute for the formal filing actions by incumbent LECs that are Chief Counsel for Advocacy of the Small requirements addressed above. Parties economically unreasonable or contrary Business Administration in accordance submitting diskettes should submit to the public interest. The Commission with paragraph 603(a) of the Regulatory them to Sheryl Todd, Common Carrier may permit, but may not require, joint Flexibility Act, 5 U.S.C. §§ 601 et seq. Bureau, 2100 M Street, N.W., Room ownership of infrastructure, and must (1981). 8611, Washington, D.C. 20554. Such a provide that incumbent LECs are not Federal Communications Commission. submission should be on a 3.5 inch treated as common carriers by virtue of diskette in an IBM compatible format their Section 259 obligations. In this William F. Caton, using WordPerfect 5.1 for Windows NPRM, we seek comment on how to Acting Secretary. software in a ‘‘read only’’ mode. The implement the above provisions. [FR Doc. 96–30661 Filed 11–29–96; 8:45 am] diskette should be clearly labelled with Section 259(b)(4) further directs the BILLING CODE 6712±01±P the party’s name, proceeding, and date Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63779 of submission. The diskette should be Commenters should supply information Summary of Recommended Decision accompanied by a cover letter. on the size of cities and other 1. Principles. We recommend that FOR FURTHER INFORMATION CONTACT: demographic information pertaining to insular areas that might be used to policy on universal service should be a Sheryl Todd at 202–530–6040. fair and reasonable balance of all of SUPPLEMENTARY INFORMATION: The Joint establish the urban rate and rural rate in each of those areas. What costs would those principles identified in section Board recommended that the 254(b) and the additional principle we Commission specifically seek additional be incurred in supporting upgrades to the public switched network necessary identify in this section. We recognize, information and comment on a number however, that our primary responsibility of topics, including, for example: to provide services to rural health care providers? To what extent, and on what on this matter is to ensure that Principles. How should the additional consumers throughout the Nation are principle of competitive neutrality be schedule, might ongoing network modernization, as is currently going not harmed and are benefited under our defined and applied within the context recommendation. To this end, we of universal service? forward under private initiative or according to state-sponsored recommend that promotion of any one Low-Income. What baseline amount goal or principle in this proceeding of support should be provided to low- modernization plans, make universal service support for such upgrades should be tempered by a commitment to income consumers? Is the $5.25 baseline ensure quality services at just, amount suggested in the Recommended unnecessary? What are the probable costs, and the advantages and reasonable, and affordable rates in all Decision likely to be adequate? How can areas of the Nation, for those services the FCC avoid the unintended disadvantages, of supporting upgrades to public switched or backbone that meet the section 254(c)(1) criteria. consequence that the increased federal networks where such upgrades can be 2. We recommend that the support amount has no direct effect on shown to be necessary to deliver eligible Commission also establish ‘‘competitive Lifeline subscribers’ rates in many services to rural health care providers? neutrality’’ as an additional principle populous states with Lifeline programs, Administration. Should contributions upon which it shall base policies for the and instead results only in a larger for high cost and low-income support preservation and advancement of percentage of total support being mechanisms be based on the intrastate universal service, pursuant to section generated from federal sources? and interstate revenues of carriers that 254(b)(7). We ask that the Commission Schools/Libraries. What methods provide interstate telecommunications define the principle in the context of should the Commission use for services, based on the factors determining universal service support, identifying high cost areas for purposes enumerated in the Recommended as: of providing a greater discount to Decision? Should the intrastate nature ‘‘COMPETITIVE NEUTRALITY— schools and libraries located in high of the services supported by the high cost areas? What measures of economic Universal service support mechanisms cost and low-income programs have a and rules should be applied in a advantage may be readily available to bearing on the revenue base for identify economically disadvantaged competitively neutral manner.’’ assessing funds? Should contributing 3. We believe that the principle of non-public schools and economically carriers’ abilities to identify separately competitive neutrality encompasses the disadvantaged libraries or, if none is intrastate and interstate revenues in an concept of technological neutrality by readily available, what information evolving telecommunications market allowing the marketplace to direct the could be required that would be and carriers’ incentives to shift revenues development and growth of technology minimally burdensome? between jurisdictions to avoid and avoiding endorsement of potentially Health Care. What is the exact scope contributions have a bearing on this obsolete services. In recognizing the of services that should be included in question? the list of additional services ‘‘necessary We ask parties to address the effects concept of technological neutrality, we for the provision of health care’’ in a that the Joint Board’s recommendations are not guaranteeing the success of any state? In responding, commenters to the Commission are likely to have on technology for all purposes supported should address the telecommunications small entities and what measures the through universal service support needs of rural health care providers and Commission should undertake to avoid mechanisms but merely stating that the most cost-effective ways to provide significant economic impact on small universal service support should not be these services to rural areas. What business entities as defined by Section biased toward any particular would be the relative costs and benefits 601(3) of the Regulatory Flexibility Act. technologies. We further believe that the of supporting technologies and services These comments must be filed in principle of competitive neutrality that require bandwidth higher than accordance with the same filing should be applied to each and every 1.544 Mbps? How rapidly is local access deadlines as comments on the rest of the recipient and contributor to the to Internet Service Providers (ISPs) Recommended Decision, but they must universal service support mechanisms, expanding in rural areas of the country, have a separate and distinct heading regardless of size, status or geographic and what are the costs likely to be designating them as responses to the location. incurred in providing toll-free access to regulatory flexibility analysis. 4. Given the provisions elsewhere in ISPs for health care providers in rural The Commission invites interested the law that require access to areas? What are the probable costs that parties to file comments on the Joint telecommunications equipment and would be incurred in eliminating Board’s recommendations and on the services by people with disabilities, we distance-based charges and/or charges Commission’s legal authority to recommend that the Commission not on traffic between Local Access and implement such recommendations. adopt specific principles related to Transport Areas (LATAs) (interLATA Copies of the Recommended Decision telecommunications users with traffic), where such charges are in can be obtained from (1) the disabilities in this universal service excess of those paid by customers in the International Transcription Service proceeding. With respect to the requests nearest urban areas of the state? Do (ITS), Room 140, 2100 M Street, N.W., for additional principles designed to insular areas experience a disparity in Washington, D.C. 20037 or (2) the FCC promote the welfare of other specific telecommunications rates between World Wide Web Home Page: http:// groups such as subscribers in rural areas urbanized and non-urbanized areas? www.fcc.gov. and customers with low incomes, we do 63780 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules not recommend the establishment of find that single-party service means that 11. We agree with commenters who any additional principles. only one customer will be served by argue that ‘‘touch-tone’’ is more 5. Finally, although this Joint Board each subscriber loop or access line, appropriately termed DTMF signaling. supports the concept of administrative although carriers may offer consumers DTMF facilitates the transportation of simplicity, we do not recommend that the choice of multi-party service in signaling through the network. DTMF the Commission formally adopt this addition to single-party service and also accelerates call set-up time. As concept as a principle. Section 254(b)(5) remain eligible for universal service noted in the NPRM, other methods of provides that support mechanisms support. In addition, to the extent that signaling, such as digital signaling, can should be ‘‘[s]pecific and predictable.’’ wireless providers use spectrum shared provide network benefits equivalent to We find that this principle encompasses among users to provide service, we find that of DTMF. Therefore, we administrative simplicity. In addition, that wireless carriers provide the recommend that DTMF or its functional we decline to recommend that access to equivalent of single-party service since digital equivalent (hereinafter referred the particular services commenters have users are given a dedicated channel for to as ‘‘DTMF’’) be supported under proposed become guiding principles for each transmission. (Wireless carriers are section 254(c)(1). the Commission’s universal service not, however, required to provide a 12. Like the other core services, access policies. Instead, we consider whether single channel dedicated to a particular to emergency service is a functionality these services, consistent with the user at all times; a wireless carrier that is widely deployed and subscribed principles of the 1996 Act, should be provides the equivalent of single-party to by a majority of residential included in the definition of universal service when it provides a dedicated subscribers. Further, access to service. message path for the length of a user’s emergency service is widely recognized 6. Definition of Universal Service: particular transmission.) Moreover, we as ‘‘essential to * * * public safety.’’ In What Services to Support. The 1996 Act recommend permitting a transition defining access, the record supports the defines ‘‘telecommunications services’’ period for carriers to make upgrades to inclusion of access to 911 (but not for as ‘‘the offering of telecommunications provide single-party service, but only to Public Safety Answering Points, which for a fee directly to the public * ** the extent carriers can meet a heavy local public safety officials provide). regardless of the facilities used.’’ With burden that such a transition period is Nearly 90 percent of lines today have the exception of single-party service and necessary and in the public interest. access to 911 capability. In addition, we touch-tone dialing, the core services Since state commissions will be recommend access to E911 service, proposed in the Notice of Proposed responsible for designating carriers as where the locality has chosen to Rulemaking and Order Establishing a eligible for purpose of receiving federal implement that service, be included in Joint Board (NPRM) represent universal service support, we the definition of universal service. We functionalities or applications recommend that states make the do not recommend providing universal associated with the provision of access determination as to the need for a service support, however, for E911 to the public network, rather than transition period for a particular carrier. service. We recommend not including tariffed services. The Joint Board E911 service within the definition of 9. We find that the record provides concludes that defining services to be supported at this time, but ample support for our conclusion that telecommunications services in a may recommend its consideration when voice grade access, an essential element functional sense, rather than on the the definition is revisited, as anticipated basis of tariffed services alone, is to telephone service, is subscribed to by by section 254(c)(2). consistent with the intent of section a substantial majority of residential 13. In supporting access to operator 254(c)(1). customers and is being deployed in service, we recommend that the 7. Based on the overwhelming public telecommunications networks by Commission adopt the definition of support in the record, the Joint Board telecommunications carriers. In operator services it implemented for recommends that the services proposed addition, we find that voice grade access purposes of section 251(b)(3), namely, in the NPRM should be included in the should occur in the frequency range ‘‘any automatic or live assistance to a general definition of services supported between approximately 500 Hertz and consumer to arrange for billing or under section 254(c)(1). We reject the 4,000 Hertz, for a bandwidth of completion, or both, of a telephone arguments of commenters that a service approximately 3,500 Hertz. Voice grade call.’’ must meet all of the statutory criteria of access should also include the ability to 14. In addition to the services section 254(c)(1)(A)–(D) before it may be place calls, including the ability to proposed to be included within the included within the definition of signal the network that the caller wishes general definition of universal service universal service. Instead, we conclude to place a call, and the ability to receive by the NPRM, the Joint Board that while the Joint Board must consider calls, including the ability to signal the recommends that access to all four criteria before determining that called party that there is an incoming interexchange service be included. The a service or functionality should be call. (We explicitly do not include call Joint Board, however, recommends that included, we need not find that a waiting within this definition.) access to interexchange service should particular service meets each of the four 10. Based on strong support in the not be defined, at this time, to include criteria. Accordingly, we recommend record, we also recommend including a equal access to interexchange carriers. that the services proposed in the NPRM, local usage component within the 15. The Joint Board also recommends namely, single-party service, voice grade definition of voice grade access. We including access to directory assistance, access to the public switched telephone conclude that the states are best specifically, the ability to place a call to network (PTSN), DTMF or its functional positioned to determine the local usage directory assistance, in the definition of digital equivalent, access to emergency component that represents affordable universal service. Like access to services and access to operator services service within their jurisdictions. interexchange service, access to be designated for universal service Nonetheless, for purposes of directory service is a functionality of the support pursuant to section 254(c)(1). determining the amount of federal loop. We recommend that support be 8. The Joint Board recommends that universal service support, we provided for access to directory single-party service should receive recommend that the Commission assistance, not the service itself. universal service support. We further determine a level of local usage. Therefore, we will refer to voice grade Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63781 access to the public switched network, section 214(e) requires eligible carriers areas. We recommend that, for business DTMF or touch-tone, single-party to ‘‘offer the services that are supported connections, a standard different from service, access to emergency service, by Federal universal service support that applied to residential connections access to operator service, access to mechanisms under section 254,’’ we are for determining support should be interexchange service, and access to unwilling to recommend that established. We recommend initially directory assistance as the ‘‘designated’’ telecommunications providers be supporting the designated services or ‘‘core’’ services for section 254(c)(1) permitted to receive broad waivers from carried on business connections in a universal service purposes . the requirement to provide the services high cost area at a lower level than that 16. We generally agree with those we recommend designating for provided for residential connections in commenters that argue that carriers universal service support. As discussed the same area. As discussed, below, we designated as eligible above, however, we recommend that recommend that the Commission use a telecommunications service providers state commission be permitted to grant benchmark based on the revenue must provide each of the services a request for a transition to carriers that generated per line to determine the designated for support subject to certain cannot currently provide single-party amount of support carriers should exemptions as discussed below. We service if the circumstances warrant receive. Under this recommended recommend that telecommunications such a transition period. approach, eligible carriers would carriers that are unable to provide one 19. We find that support for receive less support for serving single- or more of these services should not designated services provided to connection businesses than they would receive universal service support unless residential customers should be limited for residential service because business exceptional circumstances exist. We to those services carried on a single rates are higher than residential rates. recommend that states have the connection to a subscriber’s principal As discussed in greater detail below, we discretion to provide for a transition residence. (In light of our recommended recommend that the amount of support period, for good cause, to allow carriers principle of competitive neutrality, we be derived from calculating the to make upgrades to provide single- will hereinafter refer to ‘‘connections’’ difference between the cost of providing party service. rather than ‘‘lines.’’) We conclude that service and the benchmark amount. 17. In addition to our general support for a single residential 22. The 1996 Act enunciates the conclusion that carriers must provide connection will permit a household principle that ‘‘quality services’’ should each of the designated services in order complete access to telecommunications be available. We refrain from to receive support, we find that and information services. The Joint recommending that the Commission universal service support should be Board, however, declines at this time to require that eligible carriers meet available in limited instances where a provide support for other residential specific, Commission-established carrier is unable to provide a few connections beyond the primary technical standards as a condition to specific services. For example, based on residential connection. Support for a receiving universal service support. We our analysis of E911, discussed above, second connection is not necessary for recommend that the Commission, to the we conclude that access to E911 should a household to have the required extent possible, rely on existing data to be among those services supported by ‘‘access’’ to telecommunications and monitor service quality. Because many universal service mechanisms because, information services. We are states already have adopted service for example, it is ‘‘essential to * ** unpersuaded that universal service quality requirements, we do not public safety’’ consistent with section support should be extended to second recommend that the Commission 254(c)(1)(A). We realize, however, that residences in high cost areas. We undertake efforts to collect quality of not all carriers are currently capable of conclude that the consumer benefits service data in addition to those already providing access to E911 and, in fact, that result from support should not be in place with respect to price cap LECs. not all communities have the facilities extended to second homes. Such In many cases, additional requirements in place to provide E911 service. residences may not be occupied at all by the Commission would duplicate the Nevertheless, we conclude that access to times, and their occupants presumably states’ efforts. Instead, we recommend E911 should be supported to the extent can afford to pay rates that accurately that state commissions submit to the that carriers are providing such access. reflect the cost of service. Commission the service quality data Similarly, as discussed below, we find 20. We find that designated services provided to them by carriers. We further that toll blocking or control services carried to single-connection businesses recommend that the Commission not should be supported when provided to in rural, insular and other high cost impose data collection requirements on qualifying low-income consumers, to areas should be supported by universal carriers at this time. Therefore, we the extent that eligible carriers are service mechanisms, although we find conclude that the Commission should technically capable of providing these that a reduced level of support may be rely on service quality data collected at services. Thus, we recommend that appropriate. We find general similarities the state level in making its eligible carriers be required to provide between residential and single-line determination that ‘‘quality services’’ all of those services we characterize as business customers. Both single-line are available, consistent with section ‘‘designated’’ services, but we also business and residential subscribers 254(b)(1). recommend that the Commission require access for health, safety and 23. We recommend that the support additional services such as employment reasons. We recommend Commission convene a Joint Board no E911 and toll limitation, to the extent making universal service support later than January 1, 2001, to revisit the eligible carriers are providing these available for designated services carried definition of universal service. In important services. to single-connection businesses in high addition, the Commission may institute 18. Finally, we conclude that waivers cost areas. a review at any time upon its own should not be generally available to 21. We conclude, however, that motion or in response to petitions by carriers that do not provide one or more designated services carried to interested parties. We note that, in of the designated services. Nevertheless, businesses subscribing to only one complying with the statutory mandate the record supports the contention that connection should not receive the full of section 706(b) of the 1996 Act, the some carriers may currently be unable amount of support designated for Commission may take additional steps to offer single-party service. Because residential connections in high cost to determine whether advanced 63782 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules telecommunications capability is being Therefore, the Joint Board concludes 31. Although we recommend that the deployed to all Americans. that the scope of the local calling area states should make the primary 24. We find the record to be should be considered as another factor determination of rate affordability, we insufficient at this time to support our to be weighed when determining the recognize that Congress, through the recommending that the Commission affordability of rates. In addition, we 1996 Act, gave the Commission a role in adopt reporting requirements in order to find that in considering this last factor, ensuring universal service affordability. collect data that may assist the examining the number of subscribers to Subscribership levels, while not Commission in reevaluating the which one has access for local service dispositive on the issue of affordability, definition of universal service. We in a local calling area alone is not provide an objective criterion to assess recommend that the Commission base sufficient. A determination should be the overall success of state and federal future analyses of the definition of made that the calling area reflects the universal service policies in universal service on data derived from pertinent ‘‘community of interest,’’ maintaining affordable rates. Therefore, the Commission’s existing data allowing subscribers to call hospitals, we recommend that, to the extent that collection mechanisms such as those schools, and other essential services subscribership levels fall from the collected through ARMIS. without incurring a toll charge. current levels on a statewide basis, the 25. Affordability. In the 1996 Act, 28. Customer income level also is a Commission and affected state should Congress not only reaffirmed the factor that should be examined when work together informally to determine continued applicability of the principle addressing affordability. While a the cause of the decrease and the of ‘‘just and reasonable’’ rates, but also specific rate may be affordable to most implications for rate affordability in that introduced the concept of customers in an affluent area, the same state. If necessary and appropriate, the ‘‘affordability.’’ Although we believe an rate may not be affordable to lower Commission may open a formal inquiry increasingly refined understanding of income customers. We agree with the on such matters and, in concert with the the term affordability will evolve over conclusions of many commenters affected state, take such action as is time, we find that the Webster regarding the nexus between income necessary to fulfill the requirements of Dictionary definition is instructive in level and ability to afford telephone section 254. We find that this proposed determining how to interpret the service. We conclude that per capita dual approach in which both the states concept for purposes of crafting income of a local or regional area, and and the Commission play roles in universal service policies consistent not a national median, should be ensuring affordable rates is consistent with the congressional intent considered in determining affordability. with the statutory mandate embodied in underlying section 254. The definition In addition to income level, we section 254(i). of affordable contains both an absolute conclude that the cost of living in an component (‘‘to have enough or the area may affect the affordability of a 32. Carriers Eligible for Universal means for’’) and a relative component given rate. Service Support. We recommend that (‘‘to bear the cost of without serious 29. We also recognize that many the Commission adopt, without further detriment’’). Therefore, we conclude variations in a state’s rates reflect elaboration, the statutory criteria that both the absolute and relative ‘‘legitimate local variations in rate contained in section 214(e)(1) as the components must be considered in design.’’ Such variations include the rules for determining whether a making the affordability determination proportion of fixed costs allocated telecommunications carrier is eligible to required under the statute. We find that between local services and intrastate toll receive universal service support. an evaluation that considers price alone services; proportions of local service Pursuant to these criteria, a does not effectively address either revenue derived from per-minute telecommunications carrier would be component of affordability. In general, charges and monthly recurring charges; eligible to receive universal service we find that factors other than rates, and the imposition of mileage charges to support if the carrier is a common such as local calling area size, income recover additional revenues from carrier and if, throughout the service levels, cost of living, population customers located a significant distance area for which the carrier is designated density, and other socio-economic from the wire center. We find that these by the state commission as an eligible indicators may affect affordability. (The factors too should be considered in carrier, the carrier: (1) offers all of the specific needs of low-income consumers making the determination of services that are supported by federal are addressed below.) affordability of rates. universal service support mechanisms 26. Although subscribership levels 30. In light of our conclusions under section 254(c) (we recommend, can be influenced by many factors (such regarding the importance of the however, that carriers that lack the as the level of toll charges or service particular factors other than rates technical capability to offer toll- connection charges), we agree with the identified in the preceding paragraphs, limitation services to qualifying low- many commenters that argue that a we recommend that the states exercise income consumers not be required to general correlation exists between primary responsibility, consistent with offer such services, as otherwise subscribership level and affordability. the standard enumerated above, for provided below); (2) offers such services We find monitoring subscribership to be determining the affordability of rates. To using its own facilities or a combination a tool in evaluating the affordability of the extent that consumers wish to of its own facilities and resale of another rates. It should not, however, be the challenge whether a rate is truly carrier’s services, including the services exclusive tool in measuring ‘‘affordable,’’ we find the state offered by another eligible affordability. Subscribership levels do commissions, in light of their rate- telecommunications carrier; and (3) not address the second component of setting roles, are the appropriate forums advertises the availability of and charges the definition of affordability, namely, for raising such issues. Additionally, we for such services using media of general whether paying the rates charged for conclude that the Commission should distribution. We agree with the majority services imposes a hardship on those continue to oversee the development of of commenters who argue that any who subscribe. the concept of affordability, and may carrier that meets these criteria is 27. We also find that the scope of the take action to ensure rates are eligible to receive federal universal local calling area directly and affordable, where necessary and service support, regardless of the significantly affects affordability. appropriate. technology used by that carrier. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63783

33. In addition, we recommend that misuse of funds is to adopt a by competing carriers. We recommend companies subject to price cap mechanism that will set universal that the Commission encourage states, regulation be eligible to receive support at levels that reflect the costs of where appropriate to foster competition, universal service support. We agree providing universal service efficiently. to designate service areas that do not with those commenters that argue that Should additional measures be disadvantage new entrants. price cap regulation is an important tool necessary, we recommend that the Consequently, we recommend that the to smooth the transition to competition Commission, to the extent that states geographic size of the state designated and that its use should not foreclose monitor carriers to ensure the provision service areas should not be price cap companies from receiving of the supported services, rely on the unreasonably large. universal service support. Having states’ monitoring. Where necessary (for 39. Even if the state commission were recommended against the exclusion of example, if the state has insufficient to designate a large service area, price cap companies, we conclude that resources to support such monitoring however, we believe that it would be we need not address how to define programs) we recommend that the consistent with the 1996 Act to base the precisely which carriers are subject to Commission conduct periodic reviews actual level of support, if any, that non- price cap regulation. to ensure that universal service is being rural telephone company carriers would 34. Section 214(e)(1) requires that, in provided. On the question of ensuring receive for the service area on the costs order to be eligible for universal service that only eligible carriers receive to provide service in sub-units of that support, a common carrier must offer support, we agree with commenters that area. We recommend that the universal service throughout the state- additional rules are unnecessary Commission, where necessary to permit designated service area either using its because only carriers found eligible by efficient targeting of universal support, own facilities or a combination of its the states will receive funding. We establish the level of universal service own facilities and the resale of another recommend no additional rules at this support based on areas that may be carrier’s services, including those of time. smaller than the service area designated another eligible carrier. We find that the 36. We recommend that the by the state. The service area designated plain meaning of this provision is that Commission not adopt, at this time, any by the state is the geographic area used a carrier would be eligible for universal national guidelines relating to the for ‘‘the purpose of determining service support if it offers all of the requirement that carriers advertise universal support obligations and specified services throughout the throughout the service area the support mechanisms.’’ We find that this service area using its own facilities or availability of and rates for universal language refers to the designation of the using its own facilities in combination service using media of general area throughout which a carrier is with the resale of the specified services distribution. We recommend that states obligated to offer and advertise purchased from another carrier, should, in the first instance, establish universal service. It defines the overall including the incumbent LEC or any guidelines, if needed, to govern such area for which the carrier will receive other carrier. We do not recommend advertising. support from the ‘‘specific, predictable, that a carrier that offers universal 37. We recommend that the and sufficient mechanism established service solely through reselling another Commission retain the current study by the Commission to preserve and carrier’s universal service package areas of rural telephone companies as advance universal service.’’ We should be eligible for universal service the service areas for such companies. conclude that this language would not support. Similarly, we do not Section 214(e)(5) provides that for an bar the Commission from disaggregating recommend that only those area served by a rural telephone the state-designated service area into telecommunications carriers that offer company, the term ‘‘service area’’ means smaller areas in order to: (1) Identify universal service wholly over their own such company’s study area ‘‘unless or high cost areas within the service area; facilities should be eligible for universal until the Commission and the States, and (2) determine the level of support service. after taking into account the payments that a carrier would receive 35. The NPRM sought comment on recommendations of a Federal-State for the overall service area based on the various other issues related to Joint Board instituted under section sum of the support levels as determined eligibility. Specifically, it sought 410(c), establish a different definition of by the costs of serving each of the comment on whether rules should be service area for such company.’’ disaggregated areas. Other than the developed to: (1) ensure that universal 38. We find that sections 214(e)(2) requirements contained in section service support be used as intended and 214(e)(5) grant to the state 214(e)(3), we recommend that the (i.e., for the ‘‘provision, maintenance, commissions the authority and Commission not adopt any particular and upgrading of facilities and services responsibility to designate the area rules to govern how carriers for for which the support is intended’’); (2) throughout which a carrier must unserved areas are designated. ensure that only eligible carriers receive provide the defined core services in 40. High Cost Support. We believe support; and (3) set guidelines for order to be eligible for universal service that a properly crafted proxy model can advertising. Because relatively few support. We further conclude that, be used to calculate the forward-looking commenters addressed these issues, while this authority is explicitly economic costs for specific geographic there are few detailed proposals in the delegated to the state commissions, areas, and be used as the cost input in record on how to resolve them. For the states should exercise this authority in determining the level of support a first of these issues, developing rules to a manner that promotes the pro- carrier may need to serve a high cost ensure that universal service support is competitive goals of the 1996 Act as area. We cannot recommend, however, used as intended, we believe that well as the universal service principles that any of the proxy models submitted concerns about misuse of funds would of section 254. The Joint Board thus in this proceeding thus far—the BCM, largely be alleviated once competition recommends that the Commission urge the BCM2, the CPM, and the Hatfield arrives. We find that a competitive the states to designate service areas for model—should be used to determine market would minimize the incentives non-rural telephone company areas that universal service support levels. While and opportunities to misuse funds. In are of sufficiently small geographic the proxy models continue to evolve the absence of competition, we find that scope to permit efficient targeting of and improve, none of those submitted in the optimal approach to minimizing high cost support and to facilitate entry this proceeding are sufficiently 63784 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules developed to allow us to recommend a criteria in order to evaluate the with industry participants to refine the specific model at this time. The Joint reasonableness of any proxy model that models so that it could become possible Board therefore recommends that the it would use to estimate the forward- to select or create a proxy model that Commission continue to work with the looking economic cost of providing the could then be used in calculating state commissions to develop an supported services: universal service support. We adequate proxy model that can be used (1) Technology assumed in the model recommend that these workshops begin to determine the cost of providing should be the least-cost, most efficient and no later than January 1997. supported services in a particular reasonable technology for providing the 46. The state members of the Joint geographic area, and in calculating what supported services that is currently available Board will submit a report to the support, if any, a carrier should receive for purchase, with the understanding that the Commission on the use of proxy models for providing services designated for models will use the incumbent LECs’ wire and the application of such models in universal service support. We centers as the center of the loop network for the reasonably foreseeable future. this proceeding for funding universal recommend that a proxy model be service. The report of the state members developed such that it can be adopted (2) Any network function or element, such as loop, switching, transport, or signaling, will be filed prior to a Commission by the Commission by May 8, 1997, the necessary to produce supported services decision in this proceeding on proxy statutory deadline for the Commission must have an associated cost. models. The Commission and state to implement our recommendations in (3) Only forward-looking costs should be members should continue to work this proceeding. included. The costs should not be the cooperatively and remain integrally 41. We find that forward-looking embedded cost of the facilities, functions or involved in the development of an economic costs should be used to elements. acceptable proxy model. determine the cost of providing (4) The model should measure the long-run 47. While we recommend using universal service. Those costs best costs of providing service by including a forward-looking economic costs approximate the costs that would be forward-looking cost of capital and the recovery of capital through economic calculated through the use of a proxy incurred by an efficient competitor depreciation expenses. The long run period model to determine high cost support entering that market. We believe that used should be a period long enough that all for all carriers, we are concerned that support should be based on the cost of costs are treated as variable and avoidable. moving small, rural carriers to a proxy an efficient carrier and should not be (5) The model should estimate the cost of model too quickly may result in large used to offset the costs of inefficient providing service for all businesses and changes in the support that they receive. provision of service, or costs associated households within a geographic region. This with services that are not included in includes the provision of multi-line business Since rural carriers generally serve our definition of supported services, services. Such inclusion allows the models to fewer subscribers compared to the large such as private lines, interexchange reflect the economies of scale associated with incumbent LECs, serve more sparsely- the provision of these services. services, and video services. The actual populated areas, and do not generally (6) A reasonable allocation of joint and benefit from economies of scale and level of support that a carrier receives common costs should be assigned to the cost from federal universal service support scope as much as non-rural carriers, of supported services. This allocation will they often cannot respond to changing mechanisms, if any, would be based on ensure that the forward-looking costs of the difference between the cost of providing the supported services do not operating circumstances as quickly as service as determined by a proxy model include an unreasonable share of the joint large carriers. We therefore recommend and the benchmark amount. and common costs incurred in the provision that those carriers not move 42. The Joint Board recommends that of both supported and non-supported immediately to a proxy model, but the forward-looking economic cost of services, e.g., multi-line business and toll transition to a proxy over six years. For providing supported services should services. three years, starting on January 1, 1998, (7) The model and all underlying data, include all of the costs of the telephone high cost assistance, DEM weighting formulae, computations, and software and LTS benefits for rural carriers will network elements that are used to associated with the model should be provide supported services. We available to all interested parties for review be frozen based on historical per line acknowledge that the loop is essential and comment. All underlying data should be amounts. Rural carriers would then for the provision of all services, not just verifiable, engineering assumptions transition over a three year period to a those supported by the federal universal reasonable, and outputs plausible. mechanism for calculating support service mechanisms. We note, however, (8) The model should include the based on a proxy model. Prior to that that supported services include not only capability to examine and modify the critical transition, however, we recommend that local service but also access to assumptions and engineering principles. the Commission, working with the state These assumptions and principles include, commissions, review the proxy model to interexchange service. The cost of loop but are not limited to, the cost of capital, can vary depending on the type of depreciation rates, fill factors, input costs, ensure that it takes into consideration services provided. We recognize that the overhead adjustments, retail costs, structure the unique situations of rural carriers. provision of ISDN and video services sharing percentages, fiber-copper cross-over We emphasize our recommendation could increase the cost of the loop, but points, and terrain factors. The models that, after the transition, the calculation the additional loop costs incurred to should also allow for different costs of of support for rural telephone provide these services should be capital, depreciation, and expenses for companies should be based on a proxy excluded from costs considered here. In different facilities, functions or elements. model, although we recognize that the proxy models, the fiber-copper 44. The parties have brought three alternative support mechanisms, such as cross-over point determines the relative models to our attention in this competitive bidding, may also promote share of fiber in the loop plant. We proceeding. While the models hold efficient service provision. Further, we believe that the reasonable cross-over much promise, at this time, we cannot recommend that, on request, any rural point should reflect the least cost endorse a specific model as the tool the carrier should be permitted to elect to provision of the supported services Commission should use for calculating use a proxy model to determine its rather than the provision of video or costs of supported services. support level, and that any carriers advanced services. 45. We therefore urge the Commission electing to use the proxy model not be 43. We recommend that the to conduct a series of workshops at allowed to use the embedded cost Commission consider the following which federal and state staff can work approach thereafter. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63785

48. The Joint Board recommends, increase in costs. Therefore, we 54. LTS payments are currently however, that rural carriers be able to recommend that support not be frozen determined by comparing the amount move to a proxy-based system earlier if at a total dollar amount, but instead, at pool members will receive in SLCs and they choose to do so. We recommend a per line amount. Rural carriers would CCL charges to the pool’s projected that the Commission define ‘‘rural’’ as receive additional support at the same revenues requirement. In order to those carriers that meet the statutory amount per line as the number of determine the frozen LTS payment for definition of a ‘‘rural telephone subscribers increase. A frozen level of the Common Line pool members, we company.’’ See 47 U.S.C. 153(37). In high cost support will prepare these recommend that each member be order for the administrator to know LECs for both their move to a proxy allocated a percentage of the total LTS which carriers are to receive support model and the advent of a more contribution from the non-pooling LECs. payments based on the proxy model or competitive marketplace. We recommend that the allocation be their embedded costs, we recommend 52. High cost assistance to carriers made on the basis of each member’s that carriers notify the Commission and with high loop costs that will be paid common line revenue requirement the state commissions that for purposes during 1997 are based on those carriers’ relative to the total common line pool on universal service support 1995 embedded costs. Additionally, revenue requirement. We recommend determinations they meet the definition loop counts to determine the 1995 that the frozen LTS payments to pool of a ‘‘rural telephone company.’’ average costs per loop for each carrier members during the year ending 1996 Carriers should make such a notification are based on year-end 1995 loop counts. and the loop counts at year-end 1996 be each year prior to the beginning of the To determine the amount of frozen high used as the historical basis for payout period for that year. The carriers cost support per line for carriers with computing the frozen per line LTS may also use that notification as the high loop costs, we recommend that the payment beginning in 1998. For 1999, means by which to let the Commission, total amount paid to each carrier during the amount of frozen LTS payments the state commissions, and the 1997, based on 1995 embedded costs, be would be based on the frozen per line administrator know if they have chosen divided by the number of loops served amount multiplied by the number of to voluntarily move to a proxy model at the end of 1995. The amount of high lines served for the year-end 1997. before the end of the transition period. cost assistance to be paid in 1998 will Calculation of payments would 49. We also find that LTS payments then be the same per line amount paid continue in this manner throughout the constitute a universal service support in 1997 multiplied by the year end loop transition period. mechanism. As the Commission noted count for 1996. Calculation of payments 55. We recommend that the in the NPRM, LTS payments serve to would continue in this manner Commission make frozen support equalize LECs’ access charges by raising throughout the transition period. payments portable. A CLEC should be some carriers’ charges and lowering 53. Currently, DEM weighting allowed to receive support payments to others’. While some commenters have assistance is an implicit support the extent that it is able to capture noted the beneficial purposes currently mechanism that is recovered through subscribers formerly served by carriers served by LTS, no commenter argued the switched access rates charged to eligible for frozen support payments or that LTS was not a support flow. interexchange carriers by those carriers to add new customers in the ILEC’s 50. We therefore recommend that serving less than 50,000 lines. In order study area. Because we have beginning in 1998 and continuing to the to calculate the per-line DEM weighting recommended that frozen support end of the year 2000, support payments benefit, we recommend that the amount payments be computed on the basis of for high cost assistance, DEM weighting of additional revenues collected by each working loops, ILECs will, under our and Long Term Support, be frozen for carrier above what would be collected recommendation, automatically lose each carrier at the same amounts paid without DEM weighting, be calculated frozen support payments for loops on a per line basis to qualifying carriers. for the calendar year 1996. That amount, serving subscribers lost to a competitor. High cost support would be based on divided by the number of loops served We find that competition would best be the assistance received in 1997, and at the year-end 1996 would be the basis served if the frozen support payment DEM weighting and LTS benefits for the frozen per line support to be paid attributable to that line were paid received during calendar year 1996. beginning in 1998. Until December 31, instead to the CLEC that won the Beginning in the year 2001, and through 1997, DEM weighting benefits would subscriber. Likewise, a CLEC should the year 2003, we recommend that continue under the present rules. receive support for new customers that support be gradually shifted to a proxy- Although we could have recommended it serves in the ILECs study area. Since based methodology. In the year 2001, the calendar year 1997 as the basis for rural ILECs have the option at any time support would be based on 75 percent determining the frozen per-line amount to convert their support basis to a proxy frozen levels and 25 percent proxy; in for DEM weighting benefits during the methodology, we find that a CLEC 2002 support will be based on 50 transition period, we find that sufficient should also have the opportunity to percent frozen levels and 50 percent time will be needed for the fund choose proxy-based support when it proxy; in 2003 support will be based on administrator to gather the data and enters a rural ILEC’s study area. 25 percent frozen levels and 75 percent calculate payments before frozen DEM 56. We propose that rural carriers in proxy. Beginning in 2004 support will weighting benefits begin in 1998. We Alaska and in insular areas not be be 100 percent based on a proxy chose to use year-end 1996 loop counts required to shift to a support system in methodology. The total period for because this calculation would have which support levels are calculated transition for rural carriers to a proxy already been made for loop high cost based on a proxy model at this time. based system is six years. assistance purposes. For 1999, the While we believe that proxy models 51. Freezing support will encourage amount of frozen DEM weighting may provide an appropriate rural carriers to operate efficiently support would be based on the frozen determination of costs on which to base because no additional support will be per line amount multiplied by the high cost support, we are less certain provided for increased costs. We number of lines served for the year-end that they may do so for rural carriers in recognize that the number of subscribers 1997. Calculation of payments would Alaska and insular areas. Consequently, served by rural carriers could increase continue in this manner throughout the we recommend that rural carriers and associated with such increases is an transition period. serving Alaska and insular areas should 63786 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules be able to continue to use embedded periodic basis, and consider the need to experience with spectrum auctions to costs to determine their costs of offering make appropriate adjustments. devise protections against collusion. We universal service. We further 60. We find that it is advisable to recommend that any final competitive recommend that this system for rural construct two benchmarks, one for system be designed to minimize the carriers in Alaska and insular areas be residential service and a second for incentives to collude and that any revisited in the future to determine single-line business service, since we colluding carrier be subject to stiff whether changes in proxy models allow are recommending that primary penalties. them to be utilized effectively in Alaska residential and single business lines be 63. The Joint Board recommends that and insular areas. supported. The residential benchmark, the Commission set an effective date of 57. We recommend that the if ultimately adopted by the January 1, 1998, for the new universal Commission establish a benchmark to Commission, should be set equal to the service support mechanism for rural, calculate the support that eligible sum of the revenue generated by local, insular, and high cost areas that we have telecommunications providers will discretionary, and access services recommended in this section of the receive when a proxy model is used to provided to residential subscribers Recommended Decision take effect calculate the costs of providing services divided by the number of residential beginning January 1, 1998. The current designated for support from universal lines. The single-line business universal service support mechanisms service mechanisms. We believe it is benchmark should be set equal to the operate on a calendar year, and January desirable that the benchmark be based sum of the revenue generated by local, 1, 1998, will be the beginning of the first on the amount the carrier would expect discretionary, and access services calendar year after the Commission to recover from other services to cover provided to single- line business adopts rules establishing the new the cost of providing supported services subscribers divided by the number of support mechanisms. Starting at that in rural, insular, and high cost areas, but single-line business lines. date, carriers other than rural telephone final determination of the methodology 61. Although we recognize that companies would begin to receive for selecting the benchmark must also competitive bidding may provide a support based upon the proxy model. consider the revenue base for universal market-based method for determining 64. Support for Low-income service contributions. Those eligible support levels, we recommend that the Consumers. Congress included section telecommunications providers for Commission not adopt at this time any 254(j), which provides that ‘‘[n]othing in which the cost of providing supported specific plan for using competitive [section 254] shall affect the collection, services exceeds the benchmark would bidding to set support levels in rural, distribution, or administration of the be permitted to receive universal service insular, and high cost areas. While the Lifeline Assistance Program provided support. record in this proceeding persuades us for by the Commission.’’ Yet the current 58. We believe that it is desirable for that a properly structured competitive Lifeline program is not competitively the Commission to set a nationwide bidding system could have significant neutral, nor is it available in all regions benchmark to use in calculating the advantages over other mechanisms used of the nation. We find that the amount of support eligible to determine the level of universal provisions of section 254(j) can be telecommunications providers will service support for high cost areas, we reconciled with other portions of receive. Final determination of this find that the information contained in section of 254 regarding competitive issue, however, must also take into the record does not support adoption of neutrality and support for low-income consideration the contribution base for any particular competitive bidding consumers in all regions of the nation. the federal universal service proposal at this time. We recommend As an initial matter, we believe that mechanisms. We recommend that the that the Commission, together with the Congress did not intend for section benchmark the Commission adopts state commissions, continue to explore 254(j) to codify the existing Lifeline should be easy to administer and should the possibility of using competitive program. Had Congress intended for be set to minimize the probability that bidding for determining the level of section 254(j) to have that effect, it residential rates would increase while federal universal support. would have chosen clearer, less the new support mechanisms are being 62. We find that sections 254 and equivocal language. Instead, Congress implemented. The carrier’s draw from 214(e) and the record developed in this simply provided that nothing in section the federal universal service support proceeding provide some guidance 254 should affect the collection, mechanism for serving a customer about how any potential competitive distribution, or administration of the would be based on the difference bidding should be structured. We program. We therefore conclude that between the costs of serving a subscriber recommend that any competitive Congress intended, in section 254(j), to calculated using a proxy model and the bidding system be competitively neutral give the Joint Board and the benchmark. A carrier could draw from and not favor either the incumbent or Commission permission to leave the the fund for providing supported new entrants. Any carrier that meets the Lifeline program in place without services to a subscriber only if the cost eligibility criteria for universal service modification, despite its inconsistencies of serving the subscriber, as calculated support should be permitted to with other provisions of section 254 and by a proxy model, exceeds the participate in the auction. Any the 1996 Act generally. We further benchmark. competitive bidding proposal must be conclude that a necessary corollary to 59. There are essentially three consistent with the goals and this interpretation of section 254(j) is approaches to setting such a nationwide requirements of the 1996 Act, including that this Joint Board has the authority to benchmark to be used with the proxy that universal service support be recommend, and the Commission has model for calculating support. In setting ‘‘specific, predictable and sufficient.’’ the authority to adopt, changes to the a benchmark, the Commission could use Any competitive bidding system Lifeline program to make it more average revenues per line, average rates, adopted should minimize the ability of consistent with Congress’s mandates in or relative cost. We recommend that the bidders to collude. Various commenters, section 254 if such changes would serve Commission adopt a benchmark based for example, urge the Commission to the public interest. on the nationwide average revenue-per- establish and enforce stiff penalties 65. We find no statutory basis to line. We recommend that the against collusion, while others suggest recommend continuing to fund the Commission review the benchmark on a that the Commission rely on its federal Lifeline program in a manner Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63787 that places some IXCs at a competitive construed to affect the ability of the create further incentives for matching, disadvantage, or that provides no states to implement a policy prohibiting we recommend that the Commission support for low-income consumers in disconnection of local service for non- provide for additional federal support several portions of the nation. We payment of toll charges for non-Lifeline equal to one half of any support conclude that our recommendations customers. generated from the intrastate would make universal service support 69. We further recommend, however, jurisdiction, up to a maximum of $7.00 mechanisms for low-income individuals that the Commission provide state in federal support. more consistent with Congress’s express utilities regulators with the authority to 72. Although we believe this goals without fundamentally changing grant carriers a limited waiver of this recommendation will best reconcile our the basic nature of the existing Lifeline requirement if the carrier can establish competing objectives of providing program. Moreover, this approach is that: (1) it would incur substantial costs adequate nationwide support and consistent with Congress’s expression of in complying with such a requirement; maximizing state matching incentives, approval for the current Lifeline (2) it offers toll-limitation services to its we are concerned that the program in section 254(j). Lifeline subscribers at no charge; and (3) implementation of this recommendation 66. The Joint Board agrees with the telephone subscribership among low- could have no direct effect on Lifeline vast majority of commenters and income consumers in the carrier’s subscribers’ rates in many populous recommends that, through universal service area is at least as high as the states with existing Lifeline programs, service support mechanisms, low- national subscribership level for low- and could instead result only in a larger income consumers should have access income consumers. We recommend that percentage of the total support being to the same services designated for this waiver be extremely limited and generated from federal sources. support for rural, insular, and high cost that a carrier should be required to meet Therefore we recommend that the areas. We further recommend that the a very heavy burden to obtain a waiver. Commission seek additional designated services should be made part Furthermore, we recommend that the information on ways to avoid this of the modified Lifeline Assistance waiver would terminate after two years, unintended consequence before program that we recommend adopting at which time carriers could reapply for implementing this recommendation. in section. Thus, low-income consumers the waiver. 73. We also find it essential that the eligible for Lifeline Assistance would 70. The Joint Board recommends state members of the Joint Board receive, at a minimum, the designated modifying the federal Lifeline program maintain a continuing role in refining services. to reach low-income consumers in every specific aspects of the Lifeline program. 67. The Joint Board recommends that state. (Hereinafter, ‘‘states’’ will refer to The state members of the Joint Board the Lifeline Assistance program for all states, territories, and will submit a report to the Commission eligible low-income consumers include commonwealths within the jurisdiction on Lifeline issues. The report of the support for voluntary toll limitation (by of the United States.) We further state members will be filed prior to the which we mean both toll blocking recommend that, in order to be eligible Commission’s decision on the Lifeline service and toll control service), in for support from the new national program in this proceeding. Thereafter, addition to the services mentioned universal service support mechanism the Commission and the state members above. We recommend, however, that pursuant to section 214(e)(1), carriers should continue to work cooperatively only carriers that currently possess the must offer Lifeline assistance to eligible and remain integrally involved in capability of providing these services be low-income customers. We are refining the Lifeline program. required to provide them to Lifeline- reluctant, however, to recommend 74. To make the Commission’s eligible consumers and receive mandatory participation by states or Lifeline program competitively neutral, universal service support for such carriers in a program that requires states the Joint Board recommends that services. Eligible telecommunications to generate support from the intrastate support for eligible low-income carriers that are technically incapable of jurisdiction. consumers no longer be achieved providing any toll-limitation services 71. In order to reconcile our finding through charges levied on only IXCs. should not be required to provide either that Lifeline support should be We recommend that the programs be service, and such an incapability should extended to all states with our desire to supported by a fund to which all not affect their designation as eligible maximize states’ incentives to generate telecommunications carriers that telecommunications carriers. We matching intrastate support for the provide interstate service contribute on recommend, however, that eligible program, we recommend that the an equitable and nondiscriminatory telecommunications carriers not Commission eliminate the state basis as a function of their revenues, currently capable of providing these matching requirement and provide for a consistent with sections 254(d) and (e). services be required to add the baseline level of federal support that Thus, for example, LECs, wireless capability to provide at least toll would be available to low-income carriers, and other interstate blocking in any switch upgrades (but we consumers in all states. In order to telecommunications service providers do not recommend that universal ensure adequate Lifeline support in would contribute. De-linking Lifeline service support be provided for such states that choose not to generate from the Commission’s Part 69 rules switch upgrades). We further intrastate matching funds, we believe would promote competitive neutrality recommend that carriers offering this baseline federal support level by allowing the participation of carriers voluntary toll-limitation services receive should exceed the current $3.50. To who do not charge SLCs, such as CLECs support based on the incremental cost of maximize matching incentives, and wireless providers. We conclude providing those services. however, we believe the baseline that the new funding mechanism that 68. Further, the Joint Board support level should be less than $7.00. we recommend will be more recommends that the Commission We therefore propose a baseline federal competitively neutral than the current prohibit carriers receiving universal level halfway between the two figures at system, which passes the entire federal service support for providing Lifeline $5.25, and recommend that the burden of low-income support to IXCs, service from disconnecting such service Commission seek additional without sacrificing the targeting that has for non-payment of toll charges. This information on this issue before characterized the current program. We recommendation should not be establishing a precise baseline level. To also conclude that low-income 63788 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules consumers will continue to benefit equitable and non-discriminatory 80. We recommend that the directly under our recommendation. contributions from all interstate Commission implement a national rule 75. In addition to changing the telecommunications carriers. Funding prohibiting telecommunications carriers contribution method for the Lifeline the program through contributions from from requiring Lifeline-participating program, we recommend amending the all interstate carriers will allow for an subscribers to pay service deposits in program to enable all eligible explicit and competitively neutral order to initiate service if the subscriber telecommunications carriers, not just funding mechanism consistent with voluntarily elects to receive toll LECs, to be eligible to receive support sections 254 (d) and (e). blocking. for serving qualified low-income 78. We recommend that the 81. Issues Unique to Insular Areas. consumers. Currently, only ILECs Commission amend its Link Up rules to We recognize the special circumstances serving eligible low-income consumers make the present level of Link Up faced by carriers and consumers in the can receive support. We find, however, support available to qualifying low- insular areas of the United States, that eligible telecommunications income consumers requesting service particularly the Pacific Island territories. carriers other than ILECs should have from any telecommunications carrier We note at the outset that carriers in the ability to compete to serve low- providing local exchange service. these areas, like all other carriers, will income consumers and in turn receive Support would be available only for the be eligible for universal service support Lifeline support in a manner similar to primary residential connection. As if they serve high cost areas. We the current program. We recommend amended, the Link Up rules should thus recommend that rural carriers serving that in order to participate, a carrier provide that any eligible high cost insular areas, as well as rural must demonstrate to the public utility telecommunications carrier may draw carriers serving high cost areas in commission of the state in which it support from the new Link Up funding Alaska, should continue to receive operates that it offers a Lifeline rate to mechanism described above if that universal service support based on their qualified individuals. We recommend carrier offers to eligible customers a embedded costs. 82. We recommend that the that the Lifeline rate be the carrier’s reduction of its service connection Commission take no specific action lowest comparable non-Lifeline rate charges equal to one half of the carrier’s regarding cost support for toll service to reduced by at least the $5.25 amount of customary connection charge or $30.00, the Northern Mariana Islands at this federal support. We further recommend whichever is less. Where the carrier time, but revisit this issue at a later date. that support be provided directly to offers eligible customers a deferred Guam and the Northern Mariana Islands carriers based on the number of eligible payment plan for connection charges, consumers they serve under will be included in the North American we recommend that the Commission administrative procedures determined Numbering Plan by July 1, 1997. To provide support to reimburse carriers by the fund administrator. implement section 254(g), the 76. Currently, state agencies or for waiving interest on the deferred Commission will require interstate telephone companies administer charges for eligible subscribers as Link carriers serving the Pacific Island customer eligibility determinations Up currently provides for incumbent territories to integrate their rates with pursuant to narrowly-targeted programs LECs’ charges. To ensure that the the rates for services that they provide approved by the Commission. We opportunity for carrier participation is to other states no later than August 1, recommend that the Commission competitively neutral, we recommend 1997. (An interexchange carrier must maintain this basic framework for that the Commission’s rules be amended establish rates for services provided to administering Lifeline eligibility in to eliminate the requirement that the the Northern Mariana Islands and Guam states that provide matching support for commencement-of-service charges consistent with the rate methodology the Lifeline program. We also eligible for support be filed in a state that it employs for services it provides recommend that the Commission tariff. In the absence of evidence that to other states. Carriers can choose require states that provide matching increasing the level of Link Up support among several ways to integrate the funds to base eligibility criteria solely for connecting each eligible customer rates for services to these islands, on income or factors directly related to would significantly further universal including expanding mileage bands, income (such as participation in a low- service goals, however, we recommend adding mileage bands or offering income assistance program). We further that the level of support for Link Up not postalized rates. A carrier must also recommend that the Commission adopt be increased. offer optional calling plans, contract specific means-tested eligibility 79. With respect to subscribers’ tariffs, discounts, promotions, and standards to apply in states that choose eligibility to participate in the Link Up private line services using the same rate not to provide matching support from program, the Joint Board recommends methodology and structure that it uses the intrastate jurisdiction. Specifically, that the same modifications be made to in offering those services to subscribers we recommend that low-income the Link Up program that we have on the mainland. consumers participating in a state- recommended for the Lifeline program. 83. Once those carriers integrate their administered, low-income welfare That is, we encourage states to set rates, the residents of Guam and the program (and who are not considered means-tested eligibility criteria, and we Northern Mariana Islands will be able to dependents for federal income tax recommend that a federal eligibility make 1+ calls to the mainland United purposes, with the exception of ‘‘floor’’ be established that would serve States at domestic instead of dependents over the age of 60) would be as eligibility criteria in states that international rates. Residents of Guam eligible for Lifeline assistance. choose not to define means-tested and the Northern Mariana Islands will 77. The Joint Board recommends that eligibility criteria of their own. also have direct access to toll-free (e.g., the Commission adopt the changes to Consistent with some commenters’ 800, 888) services. The decision the Link Up program’s funding proposals, we also recommend that the whether to provide toll-free services to mechanism proposed in the NPRM. We Commission prohibit states from a specific area, such as the Pacific Island recommend that the Link Up funding restricting the number of service territories, is a business decision of the mechanism be removed from the connections per year for which low- carrier’s business customer, weighing jurisdictional separations rules, and that income consumers who relocate can the cost of toll charges to the islands the program be funded through receive Link Up support. against the economic benefit of Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63789 providing toll free access. Businesses bundled access to some minimal the pre-discount price. In both cases, the currently make that same determination amount of content, but only under those carrier would be required to self-certify in deciding in which areas to provide circumstances in which the ISP basic that the price offered to schools and toll free access within the fifty states, subscription charge represented the libraries is equal to or lower than the and, for business reasons, some of them most cost-effective method for the lowest corresponding price. We further choose to limit access to certain areas. school or library to secure non-content recommend that schools, libraries, and Similarly, information service providers conduit access to the Internet. carriers be permitted to appeal to the make the same type of business decision 87. We also do not recommend that a Commission, regarding interstate rates, as to whether to locate in a certain area discount mechanism for other and to state commissions, regarding or provide toll-free access to an area. information services be established at intrastate rates, if they believe that the Until the islands join the NANP and are this time. lowest corresponding price is unfairly included in carriers’ rate averaging, it is 88. We recommend that the high or low. Commission expressly acknowledge that difficult for businesses to make such 91. We recommend that the schools and libraries may receive judgments as to whether, and how, to Commission adopt a rule which discounts on charges for internal serve the islands. provides support to schools and 84. We are concerned that residents of connections. We find that Congress libraries through a percentage discount Guam and the Northern Mariana Islands recognized that such connections are a mechanism. The mechanism would be have access to toll free service and critical element for achieving the adjusted for schools and libraries that information services. We therefore congressional purpose of section 254(h), are defined as economically recommend that the Commission revisit and thus contemplated that schools and disadvantaged and those schools and the question of comparable access and libraries receive universal service libraries located in high cost areas. In rates for toll-free and information support for internal connections. particular, we recommend that the services at some time after the Pacific 89. Consistent with our Commission adopt a matrix that Island territories have been included in recommendation to establish a provides discounts from 20 percent to the NANP and have integrated rates to competitively neutral program for 90 percent, to apply to all determine whether there is any need to discounting all telecommunications telecommunications services, Internet support these services. services and Internet access under 85. Support for Schools and section 254(h)(2)(A), we recommend access, and internal connections, with Libraries. We recommend that the that internal connections within schools the range of discounts correlated to the Commission adopt a rule that provides and libraries, which may include such indicators of economic disadvantage schools and libraries with the maximum items as routers, hubs, network file and high cost for schools and libraries. flexibility to apply their universal servers, and wireless LANs, but We decline, however, to recommend a service discount to whatever package of specifically excluding personal 100 percent discount for any category of telecommunications services they computers, be included within the schools or libraries. believe will meet their section 254(h) discount program. 92. We recommend that the following telecommunications service needs most 90. We recommend that schools and matrix of percentage discounts be effectively and efficiently. libraries be required to seek competitive applied in the schools and libraries 86. We recommend that the bids for all services eligible for section programs. The matrix represents an Commission also provide eligible 254(h) discounts. We recommend that example of an appropriate distribution schools and libraries with discounts for schools and libraries be required to of schools across the five discount Internet access pursuant to section submit their requests for services to the levels, according to the specified metric 254(h)(2). These discounts would apply fund administrator, who would post the for determining the wealth of a school. to basic conduit, i.e., non-content, descriptions of services sought on a web If a different metric for determining the access from the school or library to the site for potential providers to see. The wealth of a school is ultimately chosen backbone Internet network. This access posting of a school or library’s for the purposes of this program, we would include the communications link description of services would satisfy the would expect that a similar distribution to the ISP, whether through dial-up competitive bid requirement. We of schools across the discount range access or via a leased line, and the recommend that the lowest would be reflected. The principles in subscription fee paid to the ISP, if corresponding price, defined as the determining the final matrix should applicable. The discount would also lowest price charged to similarly ensure that the greatest discounts go to apply to electronic mail, but any charges situated non-residential customers for the most disadvantaged schools and for such services would not be subject similar services, constitute the ceiling libraries, while an equitable progression to the discount discussed herein. for the competitively bid pre-discount of discounts should be applied to the Schools and libraries would be price. In areas in which there is no other categories, keeping within the permitted to apply the discount to the competition, we recommend that the parameters of 20 percent to 90 percent entire ‘‘basic’’ charge by an ISP that lowest corresponding price constitute discounts.

Cost of service (estimated percent in category) Discount matrix low cost mid-cost highest cost (67%) (26%) (7%)

How disadvantaged? based on percent of students in the < 1 (3%) ...... 20 20 25 national school lunch program (estimated percent in cat- 1±19 (30.7%) ...... 40 45 50 egory). 20±34 (19%) ...... 50 55 60 35±49 (15%) ...... 60 65 70 50±74 (16%) ...... 80 80 80 75±100 (16.3%) ...... 90 90 90 63790 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules

93. In addition, we recommend that district may better reflect per-pupil 99. We recommend that schools or the Commission set an annual cap on expenditures in that district, we districts do not have to participate in spending of $2.25 billion per year. In conclude that a model measuring the the national school lunch program in addition, any funds that are not wealth of students enrolled in school order to demonstrate their level of disbursed in a given year may be carried will more accurately reflect the level of economic disadvantage. Schools or forward and may be disbursed in economic disadvantage in all of the districts that do not participate in the subsequent years without regard to the schools and libraries eligible for national school lunch program need cap. We further recommend that the universal service support under section only certify the percentage of their Commission establish a trigger 254, including both public and non- students who would be eligible for the mechanism, so that if expenditures in public schools. We find, therefore, that program, if the school or district did any year reach $2 billion, rules of using the national school lunch program participate. Since libraries do not priority would come into effect. Under to determine eligibility for a greater participate in the national school lunch the rules of priority, only those schools discount appears to fulfill more program, we recommend that they be and libraries that are most economically accurately the statutory requirement to eligible for greater discounts based on disadvantaged and had not yet received ensure affordable access to and use of their location in a school district serving discounts from the universal service telecommunications and other covered economically disadvantaged students. mechanism in the previous year would services for schools and libraries. That is, the administrator would average be granted guaranteed funds, until the 97. If it decides to use the national the percentage of students eligible for cap was reached. Other economically school lunch program as the model for the national school lunch program in all disadvantaged schools and libraries determining eligibility for a greater eligible schools, both public and non- would have second priority for support discount, we recommend that the public, within the school district in if additional funds were available at the Commission require the entity which a library was located. The library end of the year. Finally, all other responsible for ordering would then receive the level of discount eligible schools and libraries would be telecommunications services or other representing the average discount granted funding contingent on covered services for schools to certify to offered to the school district in which it availability after economically the administrator and to the service was located. We find that this is a disadvantaged schools and libraries had provider the percentage of its students reasonable method of calculation requested funding. We also recommend eligible for the national school lunch because libraries are likely to draw that the Joint Board, as part of its review program when ordering patrons from an entire school district in the year 2001, revisit the telecommunications and other covered and this method does not impose an effectiveness of the schools and libraries services from its service providers. For unnecessary administrative burden on program. schools ordering telecommunications libraries. We recommend that the 94. We recommend that the statutory and other covered services at the Commission seek additional definition of ‘‘affordable’’ must take into individual school level, which should information and parties’ comments on account the cost of service in an area. include primarily non-public schools, what measures of economic Thus, we recommend that the the person ordering such services disadvantage may be readily available Commission take into account the cost should certify to the administrator and for identification of economically of providing services when setting to the service provider the percentage of disadvantaged libraries or, if not readily discounts for schools and libraries. To students eligible in that school for the available, what information could be achieve this, we recommend that the national school lunch program. Each required that would be minimally Commission consider a ‘‘step’’ approach school’s level of discount will then be burdensome. that would calibrate the cost of service calculated by the administrator based on 100. We also recommend that the in some reasonable, practical, and the percentage of students eligible for Commission adopt a step approach for minimally burdensome manner. Other the national school lunch program. calculating the level of greater discount methods for determining high cost may 98. For schools ordering available to economically disadvantaged also be appropriate, and we encourage telecommunications and other covered schools and libraries. A step approach the Commission to seek additional services at the school district level, we would provide multiple levels of information and parties’ comments on seek to target the level of discount based discount based on the percentage of this issue prior to adopting rules. on each school’s percentage of students students eligible for the national school 95. To minimize any additional eligible for the national school lunch lunch program. recordkeeping or data gathering program, if the national school lunch 101. We also recommend that the obligations, we seek the least program is selected as the appropriate Commission establish a separate burdensome manner to determine the measure of economic disadvantage. At category for the least economically degree to which a school or library is the same time, we seek to minimize the disadvantaged schools, those with less economically disadvantaged. We administrative burden on school than one percent of their students recommend that the Commission seek districts. Therefore, we recommend that eligible for the national school lunch additional information and parties’ the district office certify to the program. Those schools should have comments on what measures of administrator and to the service comparatively sufficient resources economic disadvantage may be readily provider the number of students in each within their existing budgets so that available for identification of of its schools who are eligible for the they may secure affordable access to economically disadvantaged non-public national school lunch program. We services at lower discounted rates. In schools or, if not readily available, what recommend that the district office may our effort not to duplicate research information could be required that decide to compute the discounts on an already conducted and to tailor greater would be minimally burdensome. individual school basis or it may decide discounts based on level of economic 96. The national school lunch to compute an average discount. We disadvantage more accurately, we program reflects the level of economic further recommend that the school recommend using the Department of disadvantage for children enrolled in district assure that each school receive Education’s five-step breakdown to school. While using a model that the full benefit of the discount to which calculate the greater discounts on measures the wealth of an entire school it is entitled. telecommunications and other covered Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63791 services for economically disadvantaged 107. Section 254(h)(3)’s prohibition administrator, or any other state or schools. on resale, however, would not prohibit federal agency with jurisdiction that 102. To the extent that a state desires either computer lab fees for students or might, for example, suspect fraud or to supplement the discount financed fees for Internet classes. Because these other illegal conduct. We recommend through the federal universal service are not services that schools or libraries that schools and libraries also be subject fund by permitting its schools and purchased at a discount under the 1996 to random compliance audits to libraries to apply the discount to the Act, they are not subject to the resale evaluate what services they are special low rates, its actions would be ban. Therefore, we recommend that purchasing and how such services are consistent with sections 254(h) and schools and libraries be expected to being used. Such information would 254(f). Furthermore, we believe that it comply with three bona fide request permit the Commission to determine would also be permissible for states to requirements. whether universal service support choose not to supplement the federal 108. First, we find that it would not policies require adjustment. The fund program and thus prohibit its schools be unduly burdensome to expect administrator should also develop and libraries from purchasing services at schools and libraries to certify that they appropriate reporting information for special state-supported rates if they have ‘‘done their homework’’ in terms of the schools and libraries to advise on intend to secure federal-supported adopting a plan for securing access to all their progress in obtaining access to discounts. of the necessary supporting technologies telecommunications and other 103. We recommend that the needed to use the services purchased information services. Commission not require any schools or under section 254(h) effectively. 112. Section 254(h)(1)(B) requires that libraries that had secured a low price on 109. Second, we recommend that telecommunications carriers providing service to relinquish that rate simply to schools and libraries be required to send services to schools and libraries shall secure a slightly lower price produced a description of the services they desire either apply the amount of the discount by including a large amount of federal to the fund administrator or other entity afforded to schools and libraries as an support. No discount would apply, designated by the Commission. They offset to its universal service however, to charges for any usage of can use the same description they use contribution obligations or shall be telecommunications or information to meet the requirement that most reimbursed for that amount from services prior to the effective date of generally face to solicit competitive bids universal service support mechanisms. rules promulgated pursuant to this for all major purchases above some We conclude that section 254(h)(1)(B) proceeding. dollar amount. The fund administrator requires that telecommunications 104. We recommend that the or this other entity could then post a carriers be permitted to choose either Commission recognize that it can description of the services sought on a reimbursement or offset. Because non- provide for federal universal service web site for all potential competing telecommunications carriers are not support to fund intrastate discounts. We service providers to see and respond to obligated to contribute to universal also recommend that the Commission as if they were requests for proposals. service support mechanisms, they adopt rules that provide federal funding 110. Third, we recommend that, to would not be entitled to an offset. Non- for discounts for schools and libraries ensure compliance with section 254, telecommunications carriers providing on both interstate and intrastate services every school or library that requests eligible services to schools and libraries, to the levels discussed above, and that services eligible for universal service therefore, would be entitled only to establishment of intrastate discounts at support be required to submit to the reimbursement from universal service least equal to the discounts on interstate service provider a written request for support mechanisms. services be a condition of federal services. We recommend that the 113. We recommend that the universal service support for schools request should be signed by the person Commission adopt rules that will permit and libraries in that state. If a state authorized to order telecommunications schools and libraries to begin using wishes to provide an intrastate discount and other covered services for the discounted services ordered pursuant to less than the federal discount, then it school or library, certifying the section 254(h) at the start of the 1997 - may seek a waiver of this requirement. following under oath: (1) the school or 1998 school year. We anticipate that 105. On careful review, we conclude library is an eligible entity under section they may begin complying with the self- that, despite the difficulties of allocating 254(h)(4); (2) the services requested will certification requirements as soon as the costs and preventing abuses, the be used solely for educational purposes; Commission’s rules become effective. benefits from permitting schools and (3) the services will not be sold, resold, 114. Support for Health Care libraries to join in consortia with other or transferred in consideration for Providers. We find that the record is customers in their community outweigh money or any other thing of value; and insufficient to support a the danger that such aggregations will (4) if the services are being purchased as recommendation on the exact scope of lead to significant abuse of the part of an aggregated purchase with services, in addition to designated prohibition against resale. We other entities, the identities of all co- services, that should be supported for recommend that state commissions purchasers and the portion of the rural health care providers. We therefore undertake measures to enable consortia services being purchased by the school recommend that the Commission solicit of eligible and ineligible entities to or library. additional information and expert aggregate their purchases of 111. We recommend that schools and assessment of the exact scope of services telecommunications services and other libraries, as well as carriers, be required that should be included in the list of services being supported through the to maintain for their purchases of those additional services ‘‘necessary for discount mechanism, in accordance telecommunications and other covered the provision of health care in a state.’’ with the requirements set forth in services at discounted rates the kinds of We recommend that the Commission section 254(h). procurement records that they already seek information on the 106. We recommend that the keep for other purchases. We expect telecommunications needs of rural Commission interpret section 254(h)(3) schools and libraries to be able to health care providers and on the most to restrict any resale whatsoever of produce such records at the request of cost-effective ways to provide these services purchased pursuant to a section any auditor appointed by a state services to rural America. Finally, we 254 discount. education department, the fund recommend that the Commission take 63792 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules this information and these assessments volume, high-density factors that affect Modification used by the Office of Rural into account in deciding what services telecommunications rates. Because we Health Policy of the Department of to include as services eligible for see nothing in the 1996 Act or its Health and Human Services (ORHP/ universal service support. legislative history that would prohibit HHS). We also recommend that the rates 115. In reaching its decision on the using different definitions of urban for averaged to calculate the rural rate not scope of services to support, we different purposes in section 254, we include any rates reduced by universal recommend that the Commission recommend using, for purposes of service programs and paid by schools, include terminating as well as determining the ‘‘urban rate in the libraries or rural health care providers. originating services for universal service closest urban area,’’ the jurisdictional 124. We further recommend that, support in cases where the eligible boundaries of larger cities. We further where the carrier is providing no health care provider would pay for recommend that the Commission identical or technically similar services terminating as well as originating designate by regulation the exact city in that rural county, the rural rate services, such as in the case of cellular population size to define the term ‘‘large should be determined by taking the air time charges. city,’’ that it finds will best balance the average of the tariffed and other 116. Further, we recommend that the factors described in this paragraph. publicly-available rates charged for the Commission initially designate only 120. We recommend that the same or similar services in that rural telecommunications services as eligible Commission seek additional county by other carriers. If no such for support as expressly provided under information on the rate of expansion of services have been charged or are the terms of sections 254(c)(1) and local access coverage of ISPs in rural publicly available, or if the carrier 254(h)(1)(A). We do not, at this time, areas of the country and the costs likely deems the method described here, as it recommend that the Commission find to be incurred in providing toll-free would be applied to the carrier, to be that customer premises equipment access to ISPs for health care providers unfair for any reason, the carrier should should be eligible for support. in rural areas. We also recommend that be allowed, in the first instance, to 117. After the Commission designates the Commission take this information submit for the state commission’s those services eligible for support for into account in deciding what services approval a cost-based rate for the rural health care providers, we to include as services eligible for provision of the service in the most recommend that the Commission’s list universal service support. economically efficient, reasonably of supported telecommunications 121. We encourage the Commission to available manner. Where state services be revisited in 2001, when the solicit additional information on the commission review is not available, the Commission is scheduled to reconvene probable costs that would be incurred in carrier should be allowed to submit the a Joint Board on universal service. eliminating distance-based and LATA proposed rate to the Commission for its 118. On the question of determining crossing (InterLATA) charges for rural approval. The proposed rate should be the urban rate, we recommend that, for health care providers where such supported, justified, reviewed and each telecommunications service charges are in excess of those paid by approved, in the initial submission and delivered to a qualified health care customers in the nearest urban areas of periodically thereafter, according to provider as provided in section the state. We recommend that the procedures and requirements similar to 254(h)(1)(A), the Commission should Commission take this information into those used for establishing tariffed rates designate as the rate ‘‘reasonably account in deciding whether to include for telecommunications services in that comparable to rates charged for similar these charges in the list of charges state. services in urban areas in that state’’ eligible for universal service support. 125. In cases where there are no (the ‘‘urban rate’’), the highest tariffed or 122. We further recommend that the similar services being provided in the publicly available rate actually being Commission solicit further information rural county, either by the carrier or by charged to commercial customers on these topics and make appropriate others, and thus no comparable rates to within the jurisdictional boundary of provision for equalizing any disparities average, or where the carrier concludes the nearest large city in the state between urban and rural that rates derived from this formula are (measured by airline miles from the telecommunications rates to health care unfair, we find the availability of a cost- health care provider’s location to the providers in insular areas. based rate application procedure closest city boundary point). We do not 123. On the question of determining becomes an important backstop. We recommend an exact definition of the the rural rate, mindful of the intend that this procedure will ensure size of population a city must have to Commission’s obligation to craft a greater fairness to the carrier and further qualify as ‘‘large’’ for purposes of mechanism that is ‘‘specific, predictable ensure that the support mechanism is calculating the urban rate. We leave that and sufficient,’’ we recommend that the more likely to be ‘‘sufficient’’ as determination to the Commission. rural rate be determined to be the required by section 254. We note, 119. Because we are recommending average of the rates actually being however, that the record is inadequate that the highest tariffed or publicly charged to customers, other than eligible on this issue and, accordingly, we available urban rate be used to set the health care providers, for identical or recommend that the Commission urban rate charged to the health care technically similar services provided by request additional information prior to provider, we think it is important to use the carrier providing the service, to adopting final rules, on the costs that for this purpose an urban boundary commercial customers in the rural would be incurred in supporting smaller than a county boundary so as to county in which the health care necessary upgrades to the public minimize the possibility of provider is located. For all purposes switched network. We also recommend inadvertently including distance-based associated with determining the rural that the Commission seek additional or lower-density-based surcharges rate, we recommend that the term ‘‘rural information as to what extent ongoing within the comparable urban rate. We county’’ be defined as any ‘‘non-metro’’ network modernization, as is currently also believe that using larger cities for county as defined by the Office of going forward under private initiatives this purpose will increase the likelihood Management and Budget Metropolitan or according to state-sponsored that the rates in those cities will reflect Statistical Areas (OMB MSA) list, along modernization plans, might make to the greatest extent possible, with the non-urban areas of those metro universal service support of this reductions in rates based on large- counties identified in the Goldsmith element unnecessary. We further Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63793 recommend that the Commission take recommend that the Commission service support pay full rates for their this information into account in disallow the option of direct portion of the services. In addition, in deciding whether to include network reimbursement although we recognize these arrangements, we recommend that upgrades in the list of services eligible that this alternative is within the the Commission’s order make clear that for universal service support. Commission’s authority. We also the qualified health care provider can be 126. We recommend that there be no recommend that carriers be allowed to eligible for reduced rates, and the separate funding mechanism for eligible carry offset balances forward to future telecommunications carrier can be health care providers and schools and years so that the full amounts eligible to eligible for support, only for that portion libraries. We further recommend that be treated as a credit may be applied to of the services purchased and used by separate accounting and allocation reduce their universal service the health care provider. systems be maintained for the funds obligation. 136. The Commission’s adoption of collected for the two groups. 132. We recommend that every health rules providing universal service 127. We recommend that to define care provider that makes a request for support under section 254(h)(1) will ‘‘rural areas’’ the Commission use non- universal service support for significantly increase the availability metro counties (or county equivalents), telecommunications services be and deployment of telecommunications as identified by the OMB MSA list of required to submit to the carrier a services for rural health care providers. metro and non-metro counties, together written request, signed by an authorized Furthermore, we conclude that the with rural areas in metro counties officer of the health care provider, additional action the Commission will identified in the most currently certifying under oath the following undertake, as discussed above, will be available ‘‘Goldsmith Modification’’ of information: sufficient to ensure the enhancement of the MSA list used by the ORHP/HHS. access to advanced telecommunications To the extent that the Commission can (1) Which definition of health care provider in section 254(h)(5)(B) the requester and information services for these and improve upon these definitions prior to falls under; other health care providers. its statutory deadline, by identifying (2) That the requester is physically located 137. We propose that the Commission other rural areas in metro counties not in a rural area OMB defined non-metro establish rules governing the identified in the current version of the county or Goldsmith-define rural section of implementation of the support Goldsmith Modification, we encourage an OMB metro county); mechanisms recommended above. We the Commission to do so. (3) That the services requested will be used anticipate that the fund administrator 128. We conclude that where all rural solely for purposes reasonably related to the will begin receiving and processing areas are entitled to a rate no higher provision of health care services or telecommunications service requests on than the highest rate in the closest city, instruction that the health care provider is or about June 1, 1997. Therefore, we there is no need to make additional legally authorized to provide under the law recommend that the Commission advise provisions for frontier areas, or areas of the state in which they are provided; (4) That the services will not be sold, eligible health care providers that they with extra-low population density, as resold or transferred in consideration of may begin submitting requests to some parties suggest. money or any other thing of value; carriers for supported services as soon 129. We recommend creating a (5) If the services are being purchased as as practicable after the Commission mechanism that makes eligible the part of an aggregated purchase with other adopts final rules. largest reasonably practicable number of entities or individuals, the full details of any 138. The rules should provide that the health care providers that primarily such arrangement, including the identities of telecommunications carrier may begin serve rural residents and that, due to all co-purchasers and the portion of the to deploy the requested service as soon their location, are prevented from services being purchased by the health care as practicable after it has received (1) a obtaining telecommunications services provider. written request for an eligible at rates available to urban customers. The certification should be renewed telecommunications service, (2) a We agree, therefore, with the annually. properly completed signed and sworn commenters that urge that eligibility to 133. We recommend that the certification as provided in paragraph obtain telecommunications services at Commission require the universal 92 of this section, (3) approval, if rates reasonably comparable to rates in service fund administrator to establish necessary, from the appropriate agency the state’s urban areas be limited to and administer a monitoring and of the rate to be charged for the providers that are physically located in evaluation program to oversee the use of requested service, and (4) satisfactory rural areas. universal-service-supported services by payment or payment arrangements for 130. We recommend that the health care providers, and the pricing of the portion of the rate charged that is Commission attempt no further those services by carriers. the responsibility of the health care clarification of the definition of the term 134. We also recommend that the provider. ‘‘health care provider.’’ We find that Commission encourage carriers across 139. Interstate Subscriber Line section 254(h)(5)(B) adequately the country to notify eligible health care Charges and Carrier Common Line describes those entities intended by providers in their service areas of the Charges. We recommend that the Congress to be eligible for universal availability of lower rates resulting from Commission adopt the tentative service support. Therefore, we decline universal service support so that the conclusion reached in the NPRM that to recommend expanding or broadening goals of universal service to rural health LTS payments constitute a universal those categories. care providers will be more rapidly service support mechanism. As the 131. We recommend that the fulfilled. Commission noted in the NPRM, LTS Commission allow telecommunications 135. We recommend that health care payments serve to equalize LECs’ access carriers providing services to health care providers be encouraged to enter into charges by raising some carriers’ charges providers at reasonably comparable aggregate purchasing and maintenance and lowering others. rates under the provisions of section agreements for telecommunications 140. We recommend that the LTS 254(h)(1)(A), to treat the amount eligible services with other public and private system no longer be supported via the for support, calculated as recommended entities and individuals, provided access charge regime. We recommend herein, as an offset toward the carrier’s however, that the entities and that rural LECs continue to receive universal service support obligation. We individuals not eligible for universal payments comparable to LTS from the 63794 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules new universal service support broad base of funding will ensure that providing ‘‘interstate mechanism. Such payments would be competing firms make ‘‘equitable and telecommunications services,’’ they computed on a per-line basis for each nondiscriminatory contributions’’ and must contribute to universal service ILEC currently receiving LTS, based on will reduce the burden on any particular support mechanisms. the LTS payments that carrier has class of carrier. In order to interpret the 146. We recommend that ‘‘wholesale’’ received over a historical period prior to term ‘‘telecommunications carrier’’ as carriers, carriers that provide services to the release of this Recommended broadly as possible, we recommend other carriers, should be required to Decision. In the interest of competitive providing a non-exclusive, illustrative contribute, because such carriers’ neutrality, such payment would also be list of ‘‘interstate telecommunications.’’ activities are included in the phrase ‘‘to portable, on a per-line basis, to We recommend requiring any entity that such classes of eligible users as to be competitors that win the ILEC’s provides any interstate effectively available to a substantial subscribers. To this extent, we telecommunications for a fee to the portion of the public.’’ The Commission recommend that the Commission adopt public, or to such classes of eligible has interpreted this phrase to mean the position of those commenters users as to be effectively available to a ‘‘systems not dedicated exclusively to favoring the reformation of the LTS substantial portion of the public, to internal use,’’ or systems that provide mechanism to make it consistent with contribute to the fund. service to users other than significantly the 1996 Act. We make this 144. Thus, for the purposes of restricted classes. We recommend recommendation because we find that identifying which entities must adopting the same definition for LTS payments currently serve the contribute to universal service support universal service purposes. Thus, for important public interest function of mechanisms, the Joint Board example, to the extent PMRS MSS reducing the amount of loop cost that recommends that the Commission adopt providers lease capacity to other high cost LECs must seek to recover a definition of ‘‘interstate carriers, they would be considered from IXCs through interstate access telecommunications’’ that is similar to carriers that provide interstate charges, and thereby facilitating the one used for determining TRS telecommunications services. interexchange service in high cost areas. support. We recommend that ‘‘interstate 147. We do not find any reason to 141. The Joint Board concludes that telecommunications’’ include, but not define ‘‘for a fee’’ as ‘‘for profit’’ and the current $3.50 SLC cap for primary be limited to, the interstate portion of recommend that the Commission residential and single-line business the following: interpret the phrase ‘‘for a fee’’ as lines should not be increased. In the cellular telephone and paging, mobile meaning services rendered in exchange event that the Commission implements radio, operator services, PCS, access for something of value or a monetary a rule assessing carriers’ universal (including SLCs), alternative access and payment. The Joint Board concludes service contributions based on all special access, packet switched, WATS, toll- that the requirement that ‘‘every telecommunications revenues regardless free, 900, MTS, private line, telex, telegraph, telecommunications carrier’’ contribute of jurisdictional classification, we video, satellite, international/foreign, towards the support of universal recommend that the benefits from these intraLATA, and resale services service, requires all interstate CCL reductions be apportioned equally Generally, telecommunications are telecommunications carriers, including between primary residential and single- ‘‘interstate’’ when the communication or wholesalers and non-profit line-business subscribers to local transmission originates in one state, organizations, to contribute to support exchange service, on the one hand, territory, possession or the District of mechanisms. Thus, we recommend that through a reduction in the SLC cap for Columbia and terminates in another the Commission require any entity that those lines, and interstate toll users, on state, territory, possession or the District provides any of the listed interstate the other hand, through lower CCL of Columbia. In addition, under the telecommunications services on a charges. Commission’s rules, if over ten percent wholesale, resale or retail basis to 142. Currently, ILECs are required to of the traffic over a private or WATS contribute to support mechanisms to the recover through traffic-sensitive CCL line is interstate, then the revenues and extent that it provides interstate charges those interstate-allocated loop costs generated by the entire line are telecommunications services. costs not recovered through SLCs and allocated to the interstate jurisdiction. 148. We recommend that information LTS payments. In the NPRM, the 145. We recommend adoption of the service providers and enhanced service Commission referred to the Joint Board TRS approach, because carriers and the providers not be required to contribute questions related to the recovery of Commission are already familiar with to support mechanisms. We note, these loop costs, and suggested that the this approach. Contributions to the TRS however, that if information or current mechanism may constitute a fund are based on gross interstate enhanced service providers provide any universal service support flow. The telecommunications revenues. We do of the listed interstate Joint Board reaches no conclusion on not recommend that the Commission telecommunications to the public for a this question. We believe, however, that base contributions to the support fee, they would be required to it would be desirable for the mechanism in this manner. We find no contribute to support mechanisms based Commission in the very near future to reason to exempt from contribution on the revenues derived from consider revising the current CCL CMRS, satellite operators, resellers, telecommunications services. We also charge structure so that LECs are no paging companies, utility companies or recommend that the Commission re- longer required to recover the NTS cost carriers that serve rural or high cost evaluate which services qualify as of the loop from IXCs on a traffic- areas that provide interstate information services in the near future sensitive basis. telecommunications services, because to take into account changes in 143. Administration of Support the 1996 Act requires ‘‘every technology and the regulatory Mechanisms. We recommend to the telecommunications carrier that environment. Commission that the statutory provides interstate telecommunications 149. With respect to the issue of requirement that ‘‘all carriers that services’’ to contribute to support whether CMRS providers should provide interstate telecommunications mechanisms. Thus, to the extent that contribute to state universal service services’’ must contribute to support these entities are considered support mechanisms, we find that mechanisms be construed broadly. A ‘‘telecommunications carriers’’ section 332(c)(3) does not preclude Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63795 states from requiring CMRS providers to assessing both the intrastate and contributions should be confined to contribute to state support mechanisms. interstate revenues of providers of interstate revenues or whether they In addition, section 254(f) requires that interstate telecommunications services. should include a combination of all contributions to state support The Joint Board makes no interstate and intrastate revenues. mechanisms be equitable and recommendation concerning the 160. The Joint Board recommends that nondiscriminatory. appropriate funding base for the the Commission seek further 150. We recommend that the modified high cost and low income information and parties’ comments on Commission not require ‘‘other assistance programs, but does request the issue of whether both intrastate and providers of telecommunications’’ to that the Commission seek additional interstate revenues of carriers that contribute to support mechanisms at information and parties’ comment, provide interstate telecommunications this time. particularly the states, regarding the should be assessed to fund the 151. The Joint Explanatory Statement assessment method for these programs. Commission’s high cost and low income states that the de minimis exemption 157. The 1996 Act reflects the support mechanisms. The role of applies only to those carriers for which continued partnership between the complementary state and federal the cost of collection exceeds the states and the FCC in preserving and universal service mechanisms requires amount of contribution. Thus, we advancing universal service. Together, further reflection. An additional recommend that the Commission sections 254(d) and 254(f) contemplate consideration is whether the states have interpret the de minimis exemption in continued complementary state and the ability to assess the interstate this manner. We find that the legislative federal programs for advancing revenues of providers of intrastate history of section 254(d) indicates universal service. The Joint Board finds telecommunications services to fund Congress’ intent that this exemption be that state universal service programs state universal service programs and narrowly construed. should continue to play an important whether that assessment capability 152. We recommend that, once it role in ensuring universal service to all would affect the funding base for federal determines the administrator’s cost of consumers. universal service programs. In addition, collection, the Commission exempt 158. While section 254(d) prescribes we recommend that the Commission carriers for which the contribution that every telecommunications carrier seek additional information and parties’ would be less than the cost of that provides interstate communications comment on whether the intrastate collection. We suggest that such carriers services shall contribute on an equitable nature of the services supported by the be exempt from contribution and and nondiscriminatory basis to the high cost and low income assistance reporting requirements. We also specific, predictable and sufficient programs should have a bearing on the recommend that the Commission re- universal service support mechanisms revenue base for assessing funds. We evaluate administrative costs established by the Commission, the also recommend that commenting periodically once the contribution statute does not expressly identify the parties address the ability to separately mechanisms are implemented. We reject assessment base for the calculation. We identify intrastate and interstate requiring flat minimum payments for recognize that the universal service revenues in the evolving carriers qualifying for the de minimis mechanism established in this telecommunications market where exemption, because it would be proceeding to address the needs of rural, services typically associated with impractical to require a payment that insular and high cost areas will be particular jurisdictions are likely to be would result in a net loss to the support combined with the existing high cost packaged together. Finally, we ask that mechanism. assistance, DEM weighting, Linkup, parties comment on whether carriers 153. We recommend that Lifeline and Long Term Support will have an incentive to shift revenues contributions be based on a carrier’s funding mechanisms. between jurisdictions to avoid universal gross telecommunications revenues net 159. The appropriate revenue base for service contributions. of payments to other carriers. collecting support for the high cost and 161. The state members of the Joint 154. The Joint Board acknowledges low income programs must be Board will include a discussion of the that some ILECs may not be free to considered in tandem with the appropriate funding mechanism for the adjust rates to account for the amount of distribution of these funds. The current new high cost fund and low income their contributions to universal service federal high cost and low income programs as part of the report(s) on each support. We therefore recommend programs are supplemented by existing of those programs discussed above. clarifying that, under the Commission’s state programs. As we have discussed, These reports by the state members will section 251 rules, ILECs are prohibited the development and composition of a be filed prior to the Commission’s from incorporating universal service universal service support mechanism decision in this proceeding on the high support into rates for unbundled based on a proxy model has been cost and low income funds. network elements. We note, however, deferred for decision at this time, 162. With respect to administration of that carriers are permitted under section pending the convening of staff the new federal universal service fund, 254 to pass through to users of workshop sessions. We have also we recommend, based on the record in unbundled elements an equitable and deferred decision on the appropriate this proceeding, that the Commission nondiscriminatory portion of their revenue benchmark to compute the appoint a universal service advisory universal service obligation. level of federal universal service board to designate a neutral, third-party 155. We recommend that the support. Similarly, the modifications to administrator. Administration by a Commission clarify that contributions to the Lifeline program have been central administrator, as opposed to support mechanisms may be made in tentatively identified and set forth in individual state PUCs, would be more cash or through the provision of ‘‘in- this Recommended Decision for further efficient and would ensure uniform kind’’ services at ‘‘comparable’’ or comment. We find that it would be decisions and rules. ‘‘discounted’’ rates. premature at this time to conclude how 163. Although we do not recommend 156. The Joint Board recommends that the high cost assistance fund and low direct administration by state PUCs, we universal service support mechanisms income assistance programs should be recommend creating a universal service for schools and libraries and rural funded, i.e., whether interstate advisory board, pursuant to the Federal health care providers be funded by telecommunications carriers’ Advisory Committees Act, including 63796 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules state and Commission representatives, continue to administer the existing high assist and counsel the Commission in to select, oversee, and provide guidance cost and low income support the creation of an effective universal to the chosen administrator. To expedite mechanisms until the permanent service support mechanism that would the formation of the advisory board and administrator is prepared to implement ensure that the goals of affordable, its selection of a permanent the new high cost and low income quality service and access to advanced administrator, we encourage the support mechanisms. services are met by means that enhance Commission to limit the number of 166. Conclusion. The 1996 Act competition. The Joint Board also advisory board members as much as instructs the Joint Board and the sought to develop recommendations possible. To ensure that administrative Commission to adopt a new set of that could be interpreted easily and costs are kept to a minimum, we universal service support mechanisms readily applicable and, whenever, recommend that the universal service that are explicit and sufficient to possible, minimize the regulatory advisory board select an administrator preserve and advance universal service. burden on affected parties. The through a competitive bidding process. We believe that the recommendations, objective of the Public Notice, released The chosen administrator, including its discussed above, will achieve by the Commission’s Common Carrier Board of Directors, must: (1) Be neutral Congress’s goals and will ensure quality Bureau on November 18, 1996, was to and impartial; (2) not advocate specific telecommunications services at provide an opportunity for public positions to the Commission in non- affordable rates to all consumers, in all comment and to provide a record for a administration-related proceedings; (3) regions of the Nation. Commission decision on the issues not be aligned or associated with any Initial Regulatory Flexibility Analysis addressed and the recommendations particular industry segment; and (4) not made by the Joint Board in the have a direct financial interest in the 167. As required by section 603 of the Recommended Decision. support mechanisms established by the Regulatory Flexibility Act (RFA), the 170. Legal Basis: The Joint Board, in Commission. As several commenters Commission has prepared an Initial compliance with section 254(a)(1) and note, any candidate must also have the Regulatory Flexibility Analysis (IRFA) section 410(c) of the Communications ability to process large amounts of data that expands on the IRFA prepared for Act of 1934, as amended by the 1996 and to bill large numbers of carriers. We the NPRM of the expected significant Act, adopted the Recommended recommend that the advisory board economic impact on small entities by Decision (CC Docket No. 96–45) to fund the administrator’s costs through the recommendations made by the ensure the prompt implementation of the support mechanism. Federal-State Joint Board in the section 254, which contains the 164. The Joint Board strongly advises Recommended Decision (CC Docket No. universal service provisions. the Commission to create a universal 96–45). Written public comments are 171. Description and Estimate of the service advisory board as quickly as requested on the IRFA. Comments must Number of Small Entities Affected: For possible because it will be responsible be identified as responses to the IRFA the purposes of an IRFA, the RFA for selecting an administrator. The and must be filed by the deadlines for defines a ‘‘small business’’ to be the board, in turn, should quickly select an comments that are set forth above. The same as a ‘‘small business concern’’ administrator because implementation Secretary shall send a copy of this under the Small Business Act, 15 U.S.C. of the new universal service support Recommended Decision including the 632, unless the Commission has mechanisms is of utmost importance to IRFA set out below to the Chief Counsel developed one or more definitions that the nation. The Joint Board recommends for Advocacy of the Small Business are appropriate to its activities. Under that the universal service advisory board Administration in accordance with the Small Business Act, a ‘‘small appoint a neutral, third-party section 603(a) of the RFA. business concern’’ is one that: (1) Is administrator through competitive 168. Need for and Objectives of the independently owned and operated; (2) bidding no later than six months after Recommended Decision: The is not dominant in its field of operation; the board is created. We also Telecommunications Act of 1996 (1996 and (3) meets any additional criteria recommend that the Commission and Act) directed the Commission to initiate established by the Small Business the advisory board require the a rulemaking to reform our system of Administration (SBA). SBA has defined administrator to implement the new universal service so that universal a small business for Standard Industrial support mechanisms no later than six service is preserved and advanced as Classification (SIC) categories 4812 months after its appointment. markets move toward competition. (Radiotelephone Communications) and 165. We recommend that NECA be Issues related to universal service were 4813 (Telephone Communications, appointed the temporary administrator referred to a Federal-State Joint Board Except Radiotelephone) to be small of support mechanisms for schools, for recommended decision, pursuant to entities when they have fewer than libraries and health care providers. Prior section 254 of the Communications Act 1,500 employees. This IRFA first to appointment as the temporary of 1934, as amended by the 1996 Act. discusses generally the total number of administrator, we recommend, however, On November 8, 1996, the Joint Board small telephone companies falling that the Commission permit NECA to released the Recommended Decision within both of those SIC categories. add significant, meaningful that is summarized above and made Then, it discusses total numbers of other representation for non-incumbent LEC recommendations on universal service small entities potentially affected and carrier interests to the NECA Board of issues including, for example, universal attempts to refine those estimates. Directors. NECA could begin collecting service principles, services eligible for 172. Consistent with the carrier contributions and processing support, support mechanisms for rural, Commission’s prior practice, small requests for services soon after adoption insular, and high cost areas, support for incumbent LECs are excluded from the of the Commission’s rules and would low-income consumers, affordability, definition of a small entity for purposes continue to do so until the permanent support for schools and libraries, health of this IRFA. We note that the administrator is ready to begin care providers, administration of Commission has consistently certified operations. We recommend that, in support mechanisms and common line under the RFA that incumbent LECs are addition to operating the new support recovery. not subject to regulatory flexibility mechanisms for schools, libraries and 169. The Joint Board’s analyses because they are not small health care providers, NECA would recommendations were intended to businesses. Incumbent LECs do not Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63797 qualify as small businesses since they company other than a radiotelephone of interexchange services. Although it are dominant in their field of operation company is one employing fewer than seems certain that some of these carriers and hence exempt from treatment as a 1,500 persons. All but 26 of the 2,321 are not independently owned and small business under prong (2) of the non-radiotelephone companies listed by operated, or have more than 1,500 SBA test set out supra. Accordingly, the the Census Bureau were reported to employees, we are unable at this time to use of the terms ‘‘small entities’’ and have fewer than 1,000 employees. Thus, estimate with greater precision the ‘‘small businesses’’ does not encompass even if all 26 of those companies had number of IXCs that would qualify as ‘‘small incumbent LECs.’’ We will more than 1,500 employees, there small business concerns under SBA’s however, out of an abundance of would still be 2,295 non-radiotelephone definition. Consequently, we estimate caution and prudence, include small companies that might qualify as small that there are fewer than 97 small entity incumbent LECs in this IRFA to entities or small incumbent LECs. IXCs that may be affected by the eliminate any possible issue of RFA Although it seems certain that some of Recommended Decision. compliance. We use the term ‘‘small these carriers are not independently 177. Competitive Access Providers. incumbent LECs’’ to refer to any owned and operated, we are unable at Neither the Commission nor SBA has incumbent LECs that arguably might be this time to estimate with greater developed a definition of small entities defined by SBA as ‘‘small business precision the number of wireline specifically applicable to providers of concerns.’’ In addition, the Commission carriers and service providers that competitive access services (CAPs). The will take appropriate steps to ensure would qualify as small business closest applicable definition under SBA that the special circumstances of smaller concerns under SBA’s definition. rules is for telephone communications incumbent LECs are carefully Consequently, we estimate that there are companies other than radiotelephone considered. fewer than 2,295 small entity telephone (wireless) companies. The most reliable communications companies other than 1. Telephone Companies (SIC 4813) source of information regarding the radiotelephone companies that may be number of CAPs nationwide of which 173. Total Number of Telephone affected by the Recommended Decision. we are aware appears to be the data that Companies Affected. Many of the 175. Local Exchange Carriers. Neither the Commission collects annually in recommendations of the Joint Board, if the Commission nor SBA has developed connection with the TRS. According to adopted by the Commission, may have a definition of small providers of local the most recent data, 30 companies a significant effect on a substantial exchange services. The closest reported that they were engaged in the number of the small telephone applicable definition under SBA rules is provision of competitive access services. companies identified by SBA. The for telephone communications Although it seems certain that some of United States Bureau of the Census companies other than radiotelephone these carriers are not independently (‘‘the Census Bureau’’) reports that, at (wireless) companies. The most reliable owned and operated, or have more than the end of 1992, there were 3,497 firms source of information regarding the 1,500 employees, we are unable at this engaged in providing telephone number of LECs nationwide of which time to estimate with greater precision services, as defined therein, for at least we are aware appears to be the data that the number of CAPs that would qualify one year. This number contains a the Commission collects annually in as small business concerns under SBA’s variety of different categories of carriers, connection with the definition. Consequently, we estimate including local exchange carriers, Telecommunications Relay Service that there are fewer than 30 small entity interexchange carriers, competitive (TRS). According to the most recent access providers, cellular carriers, data, 1,347 companies reported that CAPs that may be affected by the mobile service carriers, operator service they were engaged in the provision of Recommended Decision. providers, pay telephone operators, PCS local exchange services. Although it 178. Operator Service Providers. providers, covered SMR providers, and seems certain that some of these carriers Neither the Commission nor SBA has resellers. It seems certain that some of are not independently owned and developed a definition of small entities those 3,497 telephone service firms may operated, or have more than 1,500 specifically applicable to providers of not qualify as small entities or small employees, we are unable at this time to operator services. The closest applicable incumbent LECs because they are not estimate with greater precision the definition under SBA rules is for ‘‘independently owned and operated.’’ number of LECs that would qualify as telephone communications companies For example, a PCS provider that is small business concerns under SBA’s other than radiotelephone (wireless) affiliated with an interexchange carrier definition. Consequently, we estimate companies. The most reliable source of having more than 1,500 employees that there are fewer than 1,347 small information regarding the number of would not meet the definition of a small incumbent LECs that may be affected by operator service providers nationwide of business. It seems reasonable to the Recommended Decision. which we are aware appears to be the conclude, therefore, that fewer than 176. Interexchange Carriers. Neither data that the Commission collects 3,497 telephone service firms would the Commission nor SBA has developed annually in connection with the TRS. qualify as small entity telephone service a definition of small entities specifically According to the most recent data, 29 firms or small incumbent LECs, as applicable to providers of interexchange companies reported that they were defined above, that may be affected by services (IXCs). The closest applicable engaged in the provision of operator the Recommended Decision. definition under SBA rules is for services. Although it seems certain that 174. Wireline Carriers and Service telephone communications companies some of these companies are not Providers. SBA has developed a other than radiotelephone (wireless) independently owned and operated, or definition of small entities for telephone companies. The most reliable source of have more than 1,500 employees, this communications companies other than information regarding the number of IRFA is unable at this time to estimate radiotelephone (wireless) companies. IXCs nationwide of which we are aware with greater precision the number of The Census Bureau reports that there appears to be the data that the operator service providers that would were 2,321 such telephone companies Commission collects annually in qualify as small business concerns in operation for at least one year at the connection with TRS. According to the under SBA’s definition. Consequently, end of 1992. According to SBA’s most recent data, 97 companies reported we estimate that there are fewer than 29 definition, a small business telephone that they were engaged in the provision small entity operator service providers 63798 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules that may be affected by the radiotelephone (wireless) companies. entities in the Block C auction. Based on Recommended Decision. The most reliable source of information this information, we conclude that the 179. Pay Telephone Operators. regarding the number of cellular service number of broadband PCS licensees Neither the Commission nor SBA has carriers nationwide of which we are affected by the Recommended Decision developed a definition of small entities aware appears to be the data that the includes, at a minimum, the 90 winning specifically applicable to pay telephone Commission collects annually in bidders that qualified as small entities operators. The closest applicable connection with the TRS. According to in the Block C broadband PCS auction. definition under SBA rules is for the most recent data, 789 companies 184. At present, licenses are being telephone communications companies reported that they were engaged in the awarded for Blocks D, E, and F of other than radiotelephone (wireless) provision of cellular services. Although broadband PCS spectrum. A total of companies. The most reliable source of it seems certain that some of these 1,479 licenses will ultimately be information regarding the number of carriers are not independently owned awarded in the D, E, and F Block pay telephone operators nationwide of and operated, or have more than 1,500 broadband PCS auctions, which began which we are aware appears to be the employees, we are unable at this time to on August 26, 1996. Eligibility for the data that the Commission collects estimate with greater precision the 493 F Block licenses is limited to annually in connection with the TRS. number of cellular service carriers that entrepreneurs with average gross According to the most recent data, 197 would qualify as small business revenues of less than $125 million. We companies reported that they were concerns under SBA’s definition. cannot estimate, however, the number engaged in the provision of pay Consequently, we estimate that there are of these licenses that will be won by telephone services. Although it seems fewer than 789 small entity cellular small entities, nor how many small certain that some of these carriers are service carriers that may be affected by entities will win D or E Block licenses. not independently owned and operated, the Recommended Decision. Given that nearly all radiotelephone or have more than 1,500 employees, we 182. Mobile Service Carriers. Neither companies have fewer than 1,000 are unable at this time to estimate with the Commission nor SBA has developed employees and that no reliable estimate greater precision the number of pay a definition of small entities specifically of the number of prospective D, E, and telephone operators that would qualify applicable to mobile service carriers, F Block licensees can be made, for as small business concerns under SBA’s such as paging companies. The closest purposes of this IRFA, we assume that definition. Consequently, we estimate applicable definition under SBA rules is all of the licenses in the D, E, and F that there are fewer than 197 small for radiotelephone (wireless) Block Broadband PCS auctions may be entity pay telephone operators that may companies. The most reliable source of awarded to small entities that may be be affected by the Recommended information regarding the number of affected by the Recommended Decision. Decision. mobile service carriers nationwide of 185. SMR Licensees. Pursuant to 47 180. Wireless (Radiotelephone) which we are aware appears to be the CFR 90.814(b)(1), the Commission has Carriers. SBA has developed a data that the Commission collects defined ‘‘small entity’’ in auctions for definition of small entities for annually in connection with the TRS. geographic area 800 MHz and 900 MHz radiotelephone (wireless) companies. According to the most recent data, 117 SMR licenses as a firm that had average The Census Bureau reports that there companies reported that they were annual gross revenues of less than $15 were 1,176 such companies in operation engaged in the provision of mobile million in the three previous calendar for at least one year at the end of 1992. services. Although it seems certain that years. This definition of a ‘‘small entity’’ According to SBA’s definition, a small some of these carriers are not in the context of 800 MHz and 900 MHz business radiotelephone company is one independently owned and operated, or SMR has been approved by the SBA. employing fewer than 1,500 persons. have more than 1,500 employees, we are The Recommended Decision may apply The Census Bureau also reported that unable at this time to estimate with to SMR providers in the 800 MHz and 1,164 of those radiotelephone greater precision the number of mobile 900 MHz bands that either hold companies had fewer than 1,000 service carriers that would qualify geographic area licenses or have employees. Thus, even if all of the under SBA’s definition. Consequently, obtained extended implementation remaining 12 companies had more than we estimate that there are fewer than authorizations. The Commission does 1,500 employees, there would still be 117 small entity mobile service carriers not know how many firms provide 800 1,164 radiotelephone companies that that may be affected by the MHz or 900 MHz geographic area SMR might qualify as small entities if they Recommended Decision. service pursuant to extended are independently owned and operated. 183. Broadband PCS Licensees. The implementation authorizations, nor how Although it seems certain that some of broadband PCS spectrum is divided into many of these providers have annual these carriers are not independently six frequency blocks designated A revenues of less than $15 million. For owned and operated, we are unable at through F. As set forth in 47 CFR purposes of this IRFA, we assume that this time to estimate with greater 24.720(b), the Commission has defined all of the extended implementation precision the number of radiotelephone ‘‘small entity’’ in the auctions for Blocks authorizations may be held by small carriers and service providers that C and F as a firm that had average gross entities that may be affected by the would qualify as small business revenues of less than $40 million in the Recommended Decision. concerns under SBA’s definition. three previous calendar years. Our 186. The Commission recently held Consequently, we estimate that there are definition of a ‘‘small entity’’ in the auctions for geographic area licenses in fewer than 1,164 small entity context of broadband PCS auctions has the 900 MHz SMR band. There were 60 radiotelephone companies that may be been approved by SBA. The winning bidders who qualified as small affected by the Recommended Decision. Commission has auctioned broadband entities in the 900 MHz auction. Based 181. Cellular Service Carriers. Neither PCS licenses in Blocks A, B, and C. The on this information, we conclude that the Commission nor SBA has developed Commission does not have sufficient the number of geographic area SMR a definition of small entities specifically data to determine how many small licensees affected by the Recommended applicable to providers of cellular businesses bid successfully for licenses Decision includes these 60 small services. The closest applicable in Blocks A and B. There were 90 entities. No auctions have been held for definition under SBA rules is for winning bidders that qualified as small 800 MHz geographic area SMR licenses. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63799

Therefore, no small entities currently rules, a ‘‘small cable company,’’ is one agencies, community mental health hold these licenses. A total of 525 serving fewer than 400,000 subscribers centers, and rural health clinics. On the licenses will be awarded for the upper nationwide. Based on the Commission’s other hand, the potential class of health 200 channels in the 800 MHz most recent information, we estimate care providers that may be affected by geographic area SMR auction. The that there were 1,439 cable operators the Recommended Decision is more Commission has not yet determined that qualified as small cable system refined than the class of providers how many licenses will be awarded for operators at the end of 1995. Since then, identified in the SBA figures to the the lower 230 channels in the 800 MHz some of those companies may have extent that the former class is comprised geographic area SMR auction. There is grown to serve over 400,000 subscribers, only of rural health care providers. no basis, moreover, on which to and others may have been involved in Given that it is not yet practicable to estimate how many small entities will transactions that caused them to be identify all rural health care providers win these licenses. Given that nearly all combined with other cable operators. that potentially may be impacted by the radiotelephone companies have fewer Consequently, we estimate that there are Recommended Decision, 5 U.S.C. 607, than 1,000 employees and that no fewer than 1,468 small entity cable we ask commenters to submit detailed reliable estimate of the number of system operators that may be affected by information to assist the Commission in prospective 800 MHz licensees can be the Recommended Decision. identifying and estimating the number made, for purposes of this IRFA, we 190. The Communications Act defines of small entities that may be impacted. assume that all of the licenses may be a small cable system operator, as ‘‘a 4. Schools and Libraries awarded to small entities that may be cable operator that, directly or through affected by the Recommended Decision. an affiliate, serves in the aggregate fewer 193. SBA has defined small 187. Resellers. Neither the than 1 percent of all subscribers in the elementary and secondary schools (SIC Commission nor SBA has developed a United States and is not affiliated with 8211) and small libraries (SIC 8231) as definition of small entities specifically any entity or entities whose gross those with under $5 million in annual applicable to resellers. The closest annual revenues in the aggregate exceed revenues. The most reliable source of applicable definition under SBA rules is $250,000,000.’’ There were 63,196,310 information regarding the total number for all telephone communications basic cable subscribers at the end of of kindergarten through 12th grade (K– companies. The most reliable source of 1995, and 1,450 cable system operators 12) schools and libraries nationwide of information regarding the number of serving fewer than one percent which we are aware appears to be data resellers nationwide of which we are (631,960) of subscribers. Although it collected by the National Center for aware appears to be the data that the seems certain that some of these cable Educational Statistics. Based on that Commission collects annually in system operators are affiliated with information, it appears that there are connection with the TRS. According to entities whose gross annual revenues approximately 112,314 public and the most recent data, 206 companies exceed $250,000,000, we are unable at private K–12 schools in the United reported that they were engaged in the this time to estimate with greater States. It further appears that there are resale of telephone services. Although it precision the number of cable system approximately 15,904 libraries, seems certain that some of these carriers operators that would qualify as small including branches, in the United are not independently owned and cable operators under the definition in States. Although it seems certain that operated, or have more than 1,500 the Communications Act. not all of these schools and libraries employees, we are unable at this time to would qualify as small entities under 3. Rural Health Care Providers estimate with greater precision the SBA’s definition, we are unable at this number of resellers that would qualify 191. Neither the Commission nor SBA time to estimate with greater precision as small business concerns under SBA’s has developed a definition of small, the number of small schools and definition. Consequently, we estimate rural health care providers. According libraries that would qualify as small that there are fewer than 206 small to the SBA’s regulations, hospitals must entities under the definition. entity resellers that may be affected by have annual gross receipts of $5 million Consequently, we estimate that there are the Recommended Decision. or less in order to qualify as a small fewer than 112,314 public and private business concern. There are schools and fewer than 15,904 libraries 2. Cable System Operators (SIC 4841) approximately 3856 hospital firms in that may be affected by the 188. SBA has developed a definition the nation, of which 294 have gross Recommended Decision. of small entities for cable and other pay annual receipts of $5 million or less 194. Due to the number and television services that includes all such (SIC 8060). complexity of the issues involved in the companies generating less than $11 192. We recognize that the potential Recommended Decision, it is not yet million in revenue annually. This class of health care providers that may practicable or reliable for the definition includes cable systems be affected by the Recommended Commission to identify all entities operators, closed circuit television Decision is at the same time broader and potentially impacted by the services, direct broadcast satellite more refined than the class of providers Recommended Decision. 5 U.S.C. 607. services, multipoint distribution identified in these SBA figures. On the Accordingly, we seek comment on any systems, satellite master antenna one hand, the potential class of health additional entities that potentially may systems and subscription television care providers that may be affected by be affected by the Recommended services. According to the Census the Recommended Decision includes Decision. Additionally, we seek Bureau, there were 1,323 such cable and additional categories of providers other comment on the general proposals set other pay television services generating than small hospital firms. Additional forth in the IRFA and any other less than $11 million in revenue that categories of providers not encompassed comments concerning the potential were in operation for at least one year within the SBA’s figures would include, impact of the Joint Board’s at the end of 1992. for example, rural community colleges, recommendations on small entities. 189. The Commission has developed medical schools with rural programs, 195. Summary Analysis of the its own definition of a small cable community health centers or health Projected Reporting, Recordkeeping, system operator for the purposes of rate centers providing health care to and Other Compliance Requirements regulation. Under the Commission’s migrants, local health departments or and Significant Alternatives to 63800 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules

Recommended Decisions That impact business entities, including that are needed in order to provide Minimize Significant Economic Impact smaller entities, by providing for access single-party service. In making this on Small Entities and Accomplish to quality and advanced services at just, recommendation, the Joint Board sought Stated Objectives: reasonable, and affordable rates. By to strike a reasonable balance between 196. Structure of the Analysis. In this recommending that the Commission the need for single-party service in a section of the IRFA, we analyze the adopt the additional principle of modern telecommunications network projected reporting, recordkeeping, and competitive neutrality, the Joint Board and the recognition that exceptional other compliance requirements that sought to ensure a level playing field for circumstances may prevent some might apply to small entities and small all carriers, including smaller entities, carriers from initially offering single- incumbent LECs if the insofar as contributions to the universal party service. recommendations made by the Joint service fund and disbursements from it 203. The Joint Board also would not Board pursuant to the Recommended would not be biased either in favor of require telecommunications providers Decision are adopted by the or against one category of carriers over to provide access to E911 service in Commission. This section also includes another. order to receive universal service a discussion of some of the types of Summary Analysis of Section IV support, but recommended that such skills that might be needed to meet the access would be supported in high cost recommended requirements. We also Definition of Universal Service areas if a carrier does provide it. describe the steps taken by the Joint Summary of Projected Reporting, Specifically, the Joint Board determined Board to minimize the economic impact Recordkeeping and Other Compliance that immediately requiring all eligible of its recommendations on small entities Requirements. carriers to provide access to E911 and small incumbent LECs, including 200. The Joint Board recommended service effectively would exclude the significant alternatives considered no reporting or recordkeeping certain wireless carriers, whose and rejected. The following analysis is requirements in this section. All eligible networks would require significant organized under individual section carriers would be required, however, to technical upgrades. To the extent that headings that correspond to the sections provide each of the services designated this class of cellular and other wireless of the Recommended Decision. for universal service support in order to carriers includes smaller carriers, this 197. Any references to the receive such support, subject to certain recommendation would permit those Recommended Decision contained in enumerated exceptions. carriers to receive universal service this IRFA are intended to provide Significant Alternatives To support notwithstanding their inability context for the analysis performed in Recommended Decisions Which to provide access to E911 service. this IRFA. To the extent that any Minimize Significant Economic Impact 204. Although other services were statement contained in this IRFA is on Small Entities and Accomplish suggested by commenters for inclusion perceived as creating ambiguity with Stated Objectives. in the definition of universal service, respect to any statement or 201. The Joint Board recommended the Joint Board declined to expand the recommendation made in the providing universal service support for definition to include those services at Recommended Decision, the statement all eligible carriers that provide each of this time. The Joint Board determined or recommendation made in the the designated services. This that an expansion of the definition to Recommended Decision shall be recommendation would permit cellular include additional services would have controlling. and other wireless carriers and non- precluded certain carriers that were Summary Analysis of Section III incumbent providers, many of which unable to provide those services from may be small businesses, to compete in receiving universal service support. The Principles high cost areas. The Joint Board Joint Board concluded that an overly- Summary of Projected Reporting, specifically did not recommend that the broad definition of universal service Recordkeeping and Other Compliance Commission withhold universal service might have the unintended effect of Requirements. support for cellular providers based on creating a barrier to entry for some 198. The Joint Board recommended its finding that this approach would carriers, many of which may be small no reporting or other compliance impede the competitive entry of certain entities, because they would be requirements relating directly to the six types of carriers, many of which may be technically unable to provide all of the principles enumerated in section 254(b) small entities, and, therefore, was designated services. or relating directly to the additional inconsistent with the pro-competitive 205. The Joint Board recommended principle of competitive neutrality, as goals of the 1996 Act. that designated services carried to considered by the Joint Board pursuant 202. The Joint Board made a number single-connection businesses in high to section 254(b)(7). of recommendations in this section that cost areas also be supported at a Significant Alternatives to were designed to minimize the burdens reduced rate. Recognizing that the Recommended Decisions Which on smaller entities wishing to become majority of single-connection businesses Minimize Significant Economic Impact eligible to receive universal service in high cost areas may be presumed to on Small Entities and Accomplish support. For example, state be small businesses, this Stated Objectives. commissions would be permitted to recommendation specifically was 199. The Joint Board concluded in approve transition periods for eligible intended to benefit those small section III of the Recommended carriers that would permit carriers, businesses. The Joint Board rejected Decision that consumers and businesses many of which might be smaller arguments opposing any support for would benefit from competitively entities, that are not currently providing business connections. The Joint Board neutral application of the universal single-party service to make the also rejected suggestions to extend service rules. While a few commenters upgrades necessary to do so. The universal service benefits to multiple- contended that competition alone recommendation would allow certain line businesses, recognizing that the would not fulfill the goals of section small, rural carriers to continue to cost of service would be more likely to 254, the Joint Board concluded that receive universal service support during be prohibitive to small, single- competitive neutrality would favorably the time they are making the upgrades connected businesses in high cost areas, Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63801 as opposed to larger businesses, without whether a telecommunications carrier is define ‘‘rural’’ as those carriers that universal service support. eligible to receive universal service meet the statutory definition of a ‘‘rural 206. The Joint Board declined to support. These statutory criteria require telephone company,’’ pursuant to 47 recommend the implementation of that a telecommunications carrier be a U.S.C. 153(37). These reporting and additional quality of service standards. common carrier and offer, throughout a recordkeeping requirements would Rather, the Joint Board recommended service area designated by the state utilize accounting and legal skills. that the Commission, to the extent commission, all of the services 212. Currently, a LEC is eligible for possible, rely on existing data, including supported by federal universal service support if its embedded loop costs, as the ARMIS data filed by price-cap LECs, support either using its own facilities or reported annually, exceed 115 percent to monitor service quality. By avoiding a combination of its own facilities and of the national average loop cost. The the creation of additional standards, this resale of another carrier’s services. A Joint Board recommended that a proxy recommendation would have the effect carrier must also advertise the model for calculating a carrier’s costs be of minimizing the reporting burden of availability of and charges for these adopted by the Commission by May 8, affected carriers, including that of services throughout its service area. 1997. Thus, beginning January 1, 1998, smaller carriers. Compliance with these statutory non-rural carriers would receive support based on the difference between the cost Summary Analysis of Section V requirements may require administrative and legal skills. of service as determined by a proxy Affordability Significant Alternatives To model and a benchmark amount. However, to minimize the financial Summary of Projected Reporting, Recommended Decisions Which impact of this rule change on small Recordkeeping and Other Compliance Minimize Significant Economic Impact entities, the Joint Board recommended Requirements. on Small Entities and Accomplish 207. The 1996 Act does not require Stated Objectives. that, beginning January 1, 1998, small, and the Joint Board did not recommend 210. The Joint Board recommended rural carriers receive high cost support any new reporting, recordkeeping or minimal national rules for eligibility, on a frozen per-line amount based on previous years’ reported costs, for years, other compliance requirements in this requiring only that carriers meet the 1998, 1999, and 2000. Furthermore, section. eligibility criteria established by Significant Alternatives To Congress in the 1996 Act. As discussed small, rural carriers would gradually Recommended Decisions Which in section VI.B, the Joint Board rejected transition to a proxy model during a Minimize Significant Economic Impact arguments calling for more stringent three year period, for the years 2001, on Small Entities and Accomplish eligibility rules, such as requiring new 2002, and 2003. (Small, rural carriers Stated Objectives. entrants to comply with any state rules serving high cost areas in Alaska and 208. This section includes applicable to the incumbent carrier, insular areas would not transition to recommendations that would directly which could have imposed additional proxy models at that time, but rather impact small entities only to the extent burdens on new entrants, many of would continue to receive support that the Joint Board recommended that which may be small businesses. based on the frozen per-line amount the states be given primary Additionally, the Joint Board until further review.) This six-year responsibility for monitoring the recommended that eligibility rules be transition period for small, rural carriers affordability of telephone service rates technologically neutral, in order to would enable small carriers to adjust and, in concert with the Commission, ensure that all telecommunications their operations in preparation for the ensuring the affordability of such rates. carriers, regardless of the technology use of proxy models. In order for small, rural carriers to receive high cost Ensuring the affordability of telephone used, could potentially qualify for support based on their frozen embedded service rates clearly would have a federal universal service support. The costs, they would be required to report positive economic impact on small Joint Board also recommended that, for the number of lines they serve at the businesses and other small entities. rural telephone companies, the designated service area throughout end of each year. 213. Since the new support Summary Analysis of Section VI which they must offer and advertise mechanism for small, rural carriers supported services be the areas in which Eligibility for Universal Service Support would be based on previous years’ they currently operate. Finally, where Summary of Projected Reporting, frozen embedded costs, the carriers states are responsible for designating a Recordkeeping and Other Compliance would no longer have to report each carrier’s service area, the Joint Board Requirements. year’s embedded costs. Thus, the 209. The 1996 Act provides that, after recommended that the Commission Recommended Decision would require the effective date of the Commission’s encourage states to designate service less reporting and recordkeeping for regulations implementing section 254, areas that do not disadvantage new small, rural carriers. Accordingly, the only carriers designated as eligible entrants. The Joint Board concluded that Joint Board anticipated that those carriers pursuant to section 214(e) shall these provisions would minimize entities’ cost of compliance with be eligible for specific federal universal reporting requirements and other reporting and recordkeeping service support. Thus, any carrier, burdens on small entities. requirements would be less than what including incumbent carriers, that wish Summary Analysis of Section VII they currently incur. Since large entities to receive universal service support also would have to report the number of must request to be designated as an High Cost Support lines they serve in order to receive eligible carrier by the applicable state Summary of Projected Reporting, support under a proxy model, these commission. Section 214(e) establishes Recordkeeping, and Other Compliance requirements would not affect small criteria that carriers must meet to be Requirements. entities disproportionately. designated as an eligible carrier. The 211. Small, rural carriers comprise the Significant Alternatives To Joint Board recommended in section specific class of small entities that are Recommended Decisions Which VI.B that the Commission adopt these subject to high cost reporting Minimize Significant Economic Impact statutory criteria, without further requirements. The Joint Board on Small Entities and Accomplish elaboration, as the rules for determining recommended that the Commission Stated Objectives. 63802 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules

214. Commenters offered a number of not impose a significant burden on school or school district should self- alternative methodologies, including small carriers due to the insubstantial certify to the fund administrator and to continuing the current embedded cost amount and general accessibility of the the service provider the number of methodology, providing support based information. Accordingly, the Joint students in each of its schools who are on combined loop and switching costs, board did not anticipate that this eligible for the national school lunch limiting allowable costs, eliminating de recommendation would impose a program or other comparable indicator minimis support lowering payout significant burden on small carriers. of economic disadvantage ultimately percentages, readjusting study areas, selected by the Commission. This Summary Analysis of Section IX and capping support levels. Although requirement arises in the context of these small, rural carriers may receive Insular Areas determining which schools are eligible more support under the current Summary of Projected Reporting, for the greater discounts to meet the embedded cost methodology, the Joint Recordkeeping, and Other Compliance statutory requirement that ‘‘affordable’’ Board rejected that proposal as a long- Requirements. access be provided. term solution based on its finding that 217. The 1996 Act does not require 221. The Joint Board also the current system promotes economic and the Joint Board did not recommend recommended that schools and libraries inefficiencies and is inconsistent with any new reporting, recordkeeping or self-certify, to the fund administrator, that they will be able to deploy any the principles of the 1996 Act. The other compliance requirements in this necessary hardware, software, and remaining alternatives, however, would section. result in even lower support levels than Significant Alternatives To wiring, and to undertake any necessary the methodology recommended by the Recommended Decisions Which teacher training required to use the Joint Board. By transitioning small, rural Minimize Significant Economic Impact services ordered pursuant to section carriers to a proxy model over a six year on Small Entities and Accomplish 254(h). This requirement would help period, the Recommended Decision’s Stated Objectives. ensure that schools and libraries avoid proposed methodology for calculating 218. The Joint Board did not make the waste that might arise if schools and support for small, rural carriers would any recommendations at this time libraries ordered inexpensive services minimize the adverse effects of an which uniquely impact small entities in before they realized what other immediate, unplanned shift to a proxy insular areas. The Joint Board resources they needed to be able to use model. recommendations in other areas, such as those services effectively. 222. The Joint Board recommended high cost support and support for Summary Analysis of Section VIII requiring schools and libraries to send schools and libraries, would apply to a description of the services they desire Support for Low-Income Consumers insular areas as well as to the mainland, to the fund administrator or other entity however. We therefore tentatively Summary of Projected Reporting, designated by the Commission. The conclude that this section of the Recordkeeping, and Other Compliance fund administrator or other entity Recommended Decision on issues Requirements. would then post a description of the 215. The Joint Board recommended unique to insular areas will not have a services sought on an Internet website that, in order to participate in the significant economic impact on a or some similar location for all potential Lifeline program, carriers would have to substantial number of small entities. competing service providers to review. demonstrate or, in some cases, continue Summary Analysis of Section X The Joint Board concluded that this to demonstrate, to the public utility requirement would help achieve commission of the state in which they Schools and Libraries Congress’s desire that schools and operate that they offer a Lifeline rate to Summary of Projected Reporting, libraries take advantage of the potential qualified individuals. In addition, Recordkeeping, and Other Compliance for competitive bids and, therefore, carriers participating in Lifeline would Requirements. would satisfy the competitive bid be required to submit certification 219. The Joint Board recommended requirement the Joint Board applications to the new federal fund requiring service providers to self- recommended imposing on schools and administrator. State agencies and certify, to the fund administrator, that libraries. carriers participating in Lifeline would the price offered to schools and libraries 223. The Joint Board recommended administer customer eligibility would be no more than the lowest price that, to ensure compliance with section determinations. These recommended charged to similarly situated non- 254, every school and library that reporting and recordkeeping residential customers for similar requests services eligible for universal requirements may require clerical and services. This requirement was designed service support should be required to administrative skills. to ensure that schools and libraries submit to the service provider a written Significant Alternatives To would receive the lowest pre- request for services. The Joint Board Recommended Decisions Which discounted price available in the recommended that the request should Minimize Significant Economic Impact marketplace for someone with their be signed by the person authorized to on Small Entities and Accomplish needs. The Joint Board also order telecommunications and other Stated Objectives. recommended requiring service covered services for the school and 216. The Joint Board recommended providers to keep and retain careful library, self-certifying the following that all eligible telecommunications records of how they have allocated the under oath: (1) the school or library is carriers now participate in Lifeline. To costs of shared facilities used by an eligible entity under section participate in the Lifeline program, consortia to ensure that only eligible 254(h)(4); (2) the services requested will carriers would be required to keep track schools and libraries derive the benefits be used solely for educational purposes; of the number of their Lifeline of section 254(h) discounts and that no (3) the services will not be sold, resold, customers and to file information with prohibited resale occurs. or transferred in consideration for the federal fund administrator. Based on 220. The Joint Board recommended money or any other thing of value; and the Commission’s prior experience that, for schools ordering (4) if the services are being purchased as administering Lifeline, the Joint Board telecommunications services, the person part of an aggregated purchase with believed that such a requirement would ordering such services for the individual other entities, the identities of all co- Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63803 purchasers and the portion of the suggestion to interpret ‘‘geographic of that description to the fund services being purchased by the school area’’ to mean the entire state in which administrator. It further found that this or library. a service provider served. This could requirement would be much less 224. The Joint Board recommended have forced service providers to serve burdensome than requiring schools and requiring schools and libraries, as well areas of a state that they were not libraries to submit a description of their as carriers, to maintain records for their previously serving, thereby requests to all telecommunications purchases of telecommunications and unreasonably burdening small carriers carriers in their state, as proposed by other covered services at discounted that were only prepared to serve some one commenter. It also would be less rates, similar to the kinds of small segment of a state. The Joint Board burdensome than a requirement that procurement records that they already also rejected requirements that carriers they demonstrate that schools and keep for other purchases. The Joint notify customers of the availability of libraries have employed a competitive Board expected that schools and discounts, recommending that the bidding process. libraries should be able to produce such Commission only recommend that 230. The Joint Board concluded that records at the request of any auditor carriers provide such notification, rather it would not be burdensome to require appointed by a state education than requiring them to do so. schools and libraries to self-certify that department, the fund administrator, or 228. Schools and libraries should not they have a plan for deploying any any other state or federal agency with be significantly burdened by the necessary resources to be able to use jurisdiction to review such records for requirement that they certify that (1) their discounted services and facilities possible misuse. The Joint Board they are eligible for support under effectively. It anticipated that few believed that these reporting and section 254(h)(4); (2) the services schools or libraries would propose to recordkeeping requirements would be requested are used for educational spend their own money for discounted necessary to ensure that schools and services; and (3) that such services will services until they believed that they libraries receive the discounted not be resold. Assuming that schools could use the services effectively. telecommunications services for the and libraries would need to inform Therefore, simply requiring them to purposes intended by Congress. carriers about what discount they are certify that they had done such planning 225. Similarly, the Joint Board eligible for to receive that discount, would be the least burdensome way to recommended that schools and libraries there should be no significant burden ensure that schools and libraries were that desire additional support due to imposed by requiring them to self- aware of the other resources they would their location in a high cost area be certify that they would satisfy the need to procure before ordering permitted to demonstrate this by statutory requirements that Congress discounted telecommunications services providing the necessary information to imposed. While the requirement that and facilities. The Joint Board show that they meet the Commission’s they disclose how shared facilities are anticipated that the burden here would high cost standards. used by the members of a consortia, if be particularly light, given the Significant Alternatives To they form one, may be somewhat development of clearinghouses of Recommended Decisions Which complicated, the Joint Board found that information for schools and libraries on Minimize Significant Economic Impact the members of the consortia would the Internet. The Joint Board found this on Small Entities and Accomplish need to allocate such costs to determine alternative significantly less Stated Objectives. which party was responsible for what burdensome than the proposed 226. Although service providers portion of the bill, even without any requirement that schools and libraries would be required to self-certify to the discount. Given that such allocations secure outside approval of their fund administrator that the prices they would be undertaken for that reason, the technology plans from a government charged to eligible schools and libraries Joint Board concluded that it would not entity before they could receive any were no more than the lowest price be burdensome to require schools and support. charged to similarly situated non- libraries to disclose those allocations 231. The Joint Board also tentatively residential customers for similar when submitting their certification of concluded that the least burdensome services, this requirement should be eligibility. In fact, schools that found manner for schools and libraries to minimally burdensome, given that such reporting to be burdensome could demonstrate that they are disadvantaged service providers could be expected to avoid such consortia, but the Joint would be to self-certify to the fund review the prices they charged to Board found it desirable, however, to administrator and to the service similarly situated customers when they provide small schools and libraries to provider the portion of students in their set the price for schools and libraries. join with other customers, including school eligible for the national student The Joint Board expressly rejected large commercial customers, to enable lunch program, although the Joint Board suggestions that it require all carriers to them to enjoy discounts comparable to remained open to other comparable offer services at total service long-run other larger customers. indicators of economic disadvantage incremental cost levels, due to the 229. A requirement that schools and that might be less burdensome or burdens it would have created. libraries submit a description of the sufficiently more precise as to justify Similarly, given that schools and services and facilities they desire to any additional burden. The Joint Board libraries that form consortia with non- purchase at a discount to the found that the national student lunch eligible entities would need to inform administrator or other designated entity program appears to be the most widely the service provider of what portion of should also be minimally burdensome. known and easily applied mechanism shared facilities purchased by the The Joint Board’s understanding was for achieving the goal of identifying consortia should be charged to eligible that school and library boards generally disadvantaged schools and libraries, schools and libraries (and discounted by already require schools and libraries to despite its flaws, and anticipated that the appropriate amounts), it should not seek competitive bids for substantial the burden it would create for schools be burdensome for carriers to maintain purchases and this forces them to create and libraries that did not otherwise records of those allocations for some a description of their purchase needs. participate in the national student lunch appropriate amount of time. The Joint Board found that it would be program would be minimal. Schools 227. With respect to service providers, only minimally burdensome to require and libraries that preferred not to the Joint Board specifically rejected a schools and libraries to submit a copy provide information about how 63804 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules disadvantaged they were would still compliance program would be unnecessarily burdensome where health qualify for a recommended 20% necessary to ensure that services are care providers would be required to discount on eligible purchases. being used for their intended purpose, invest substantial resources in order to 232. The Joint Board also found it that requesters are complying with pay urban rates for these services. The reasonable to expect schools and certification requirements, that Joint Board also rejected suggestions libraries that desire additional support requesters are otherwise eligible to that health care providers be required to due to their location in a high cost area receive universal service support, that certify that hardware, wiring, on-site to demonstrate this by providing the rates charged comply with the statute networking and training would be necessary information to show that they and regulations and that prohibitions deployed simultaneously with the meet the Commission’s high cost against resale or transfer for profit are service. Finally, the Board rejected a standards. Finally, the Joint Board strictly enforced. proposal that the financial officers of found that requiring schools and 236. The Joint Board recommended health care provider organizations be libraries to retain records of their that the Commission encourage carriers required to attest under oath that funds purchases of services and facilities across the country to notify eligible have been used as intended by the 1996 under this program for an appropriate health care providers in their service Act, because it found that the pre- amount of time would not be areas of the availability of lower rates expenditure affidavit described above, unreasonable. resulting from universal service support which would be submitted to the carrier so that the goals of universal service to along with the request for services, Summary Analysis of Section XI rural health care providers would be would be sufficient under these Health Care Providers more rapidly fulfilled. circumstances. 237. The Joint Board recommended Summary of Projected Reporting, 240. The 1996 Act provides that a using rates publicly filed or obtained in telecommunications carrier shall Recordkeeping and Other Compliance the ordinary course of Commission provide telecommunications services to Requirements. proceedings to determine the rural as any public or non-profit health care 233. The 1996 Act provides in section well as the urban rate. The Joint Board provider at rates that are reasonably 254(h)(1)(A) that a telecommunications specifically rejected any suggestion that comparable to rates charged for similar carrier providing service shall be rates not publicly available should be services in urban areas in that state. In entitled to have an amount equal to the required to be disclosed in order to the NPRM, the Commission stated its difference, if any, between the rates for implement a universal service intention to minimize, to the extent services provided to health care mechanism because it found this consistent with section 254, the providers for rural areas in a state and method to be excessively burdensome. the rates for similar services provided to 238. The Joint Board recommended administrative burden on regulators and other customers in comparable rural that a sufficient audit program be carriers. Thus, the Joint Board areas in that state treated as a service established to monitor and evaluate the recommended that the urban/rural rate obligation as part of its obligation to use of supported services in aggregated differential be based on the rates participate in the mechanisms to purchase arrangements. The Joint Board charged for similar services in the urban preserve and advance universal service. emphasized that the qualified health area closest to the health care provider’s The Joint Board recommended that care provider could be eligible for location. The Joint Board believed that every health care provider, including reduced rates, and the this method would be easy to use and small entities, that makes a request for telecommunications carrier could be understand. Thus, it complies with the universal service support for eligible for support, only on that portion Joint Board’s guidelines that telecommunications services be of the services purchased and used by implementation of universal service required to submit to the carrier a the health care provider. Accordingly, support mechanisms be fashioned to written request, signed by an authorized the carrier would have to keep minimize administrative burdens. officer of the health care provider, appropriate records. Because it would involve a one-step certifying certain information. The Joint Significant Alternatives To process, this method would be less Board recommended that this Recommended Decisions Which administratively burdensome than a certification be renewed annually. Minimize Significant Economic Impact competitive bidding system or a process 234. In formulating a recommendation on Small Entities and Accomplish based on the current Lifeline assistance as to the method for ensuring that Stated Objectives. program. This method also was deemed requests are bona fide, the Joint Board 239. The Joint Board considered preferable to plans that would require was mindful of choosing a method that several certification plans suggested by obtaining information about private minimizes, to the extent consistent with commenters. It sought to recommend contract rates, which are proprietary section 254, the administrative burden the least burdensome certification plan and not obtainable without elaborate on health care providers. Therefore, the that would provide adequate safeguards confidentiality safeguards. Joint Board sought to recommend the to ensure that the supported services are 241. The Joint Board recommended least burdensome certification plan that being used for their intended purpose. using the Office of Management and would provide safeguards that are The Joint Board rejected a five- Budget’s Metropolitan Statistical Area adequate to ensure that the supported component plan because it was too method of designating rural areas along services would be used lawfully and for expensive and burdensome. It also with the Goldsmith Modification their intended purpose. rejected a suggestion that certification because it would meet the ‘‘ease of 235. The Joint Board recommended include verification of the existence of administration’’ criterion. Since lists of that the Commission require the a technology plan and a checklist of MSA counties and Goldsmith-identified universal service fund administrator to other information helpful in tracking census blocks and tracts already exist, establish and administer a monitoring universal service. Although such plans updated to 1995, any health care and evaluation program to oversee the might be useful in a discount plan provider could easily determine if it use of universal service support to where disincentives to overpurchasing were located in a rural area and, health care providers and the pricing of are needed, the Joint Board found that therefore, whether it would meet the those services by carriers. This such a requirement would be test of eligibility for support. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63805

Summary Analysis of Section XII worksheet, the administrator would suggestions that small carriers be calculate each carriers’ contribution and exempted from contribution on the basis Subscriber Line Charges and Carrier bill each carrier. Carriers that provide of the de minimis provision of section Common Line Charges services to schools, libraries and health 254(d). It rejected these suggestions on Summary of Projected Reporting, care providers might be eligible to the basis of the legislative history Recordkeeping, and Other Compliance receive a credit against their surrounding section 254(d) which Requirements. contribution. Carriers seeking a credit provides that the de minimis exemption 242. The Joint Board’s would have to submit additional should be limited to those carriers for recommendations regarding the information on a monthly basis whom the cost of collecting the interstate subscriber line charge and regarding the services provided at less contribution exceeds the amount of the carrier common line charges would not than cost to the administrator in order contribution. The Joint Board concluded impose any additional reporting to receive the credit. Approximately that expansion of the definition of de requirements on any entities, including 3,500 telecommunications carriers minimis to include ‘‘small’’ carriers small entities. These charges currently would be required to submit revenue would violate the pro-competitive intent exist. Although the Joint Board and payment information. The of the 1996 Act and require complex recommended changes in the amounts estimated burden on the respondent for administration and regulation to of the charges, the recommended filling out the worksheet would be 4 determine and monitor eligibility for the changes would have no impact on the hours and for those submitting monthly exemption. The Joint Board believed information collection requirement, and information regarding the schools, that small entities would benefit under would not extend the charges to libraries, and health care providers, 1 the de minimis exemption as interpreted additional carriers. hour. These tasks may require some in the Recommended Decision without Significant Alternatives To legal and accounting skills. an explicit exemption for all small Recommended Decisions Which 245. The Joint Board recommended entities. Minimize Significant Economic Impact that certain carriers be exempted from 247. Federal rules that may on Small Entities and Accomplish the contribution requirement when their duplicate, overlap, or conflict with the Stated Objectives. contribution is determined to be de Recommended Decision. None. 243. Because the SLC and CCL minimis under section 254(d). The charges would recover ILECs’ costs for Board concluded that the de minimis Recommending Clauses portions of their network, reporting exemption should apply where the 248. For the reasons discussed in this requirements were deemed necessary to administrator’s cost of collecting the Recommended Decision, this Federal- track the costs and allow for their contribution exceeds the carrier’s State Joint Board, pursuant to section recovery. No alternatives were contribution. Exempt carriers would not 254(a)(1) and section 410(c) of the presented that would have eliminated or be required to submit an annual Communications Act of 1934, as substantially reduced those reporting worksheet. The Joint Board anticipated amended, 47 U.S.C. § 254(a)(1), 410(c), requirements. The Joint Board’s that this recommendation would recommends that the Federal recommendation has no impact on the provide relief to many small entities Communications Commission adopt the information collection requirement, and qualifying under the de minimis proposals, as described above, would not extend the charges to any exemption. The Joint Board sought to implementing new section 254 of the additional carriers. limit the information requirements to Telecommunications Act of 1934, as the minimum necessary for evaluating amended, 47 U.S.C. 254. Summary Analysis of Section XIII and processing the application and to 249. The Joint Board further Administration deter against possible abuse of the recommends that parties submitting any process. comments or additional information in Summary of Projected Reporting, Significant Alternatives To this docket be required to serve each Recordkeeping and Other Compliance Recommended Decisions Which member of the Federal-State Joint Board Requirements. Minimize Significant Economic Impact and the Joint Board staff. These 244. Section 254(d) states ‘‘[t]hat all on Small Entities and Accomplish submissions should be served in telecommunications carriers that Stated Objectives. accordance with the service list provide interstate telecommunications 246. The Joint Board determined that attached. services shall make equitable and small carriers should not be given nondiscriminatory contributions’’ preferential treatment in the Federal Communications Commission. toward the preservation and determination of contributions to the William F. Caton, advancement of universal service. The universal service support mechanism Acting Secretary. Recommended Decision would require solely on that status given section Appendix I—Analysis of Proxy Models all telecommunications carriers that 254(d)’s explicit directive that every 1. We have briefly discussed the criteria provide interstate telecommunications telecommunications carrier that that the Commission should consider in services to contribute to the universal provides interstate telecommunications evaluating the reasonableness of using a service support mechanism. In order to services shall contribute to the proxy model to determine the level of compute carrier contributions, carriers preservation and advancement of universal service support a carrier should must submit an annual universal service universal service. The Joint Board receive for a particular geographic area. In worksheet. The worksheet would considered the suggestions of this Appendix, we highlight some of the require all carriers to submit commenters regarding various issues raised by commenters, differences information relating to revenues derived graduated contribution schemes that between the models, and the results each from telecommunications services and would favor small entities. It rejected model produces. At the workshops that we have recommended that the Commission their payments made to other these suggestions based on the language conduct, we expect that model proponents telecommunications carriers for of the statute, legislative history and the would be prepared to discuss the relative telecommunications services to the regulatory burdens that such graduated merits of each model, the criticisms raised by administrator of the support schemes would entail. The Joint Board commenters, and the major causes of the mechanism. After receiving the further considered commenter substantial differences between the size of 63806 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules the high cost assistance support derived by regarding fill factors, terrain impacts, to the extent the Hatfield model presumes, the models. structure sharing and the fiber/copper cross- but we do not conclude, as do the proponents 2. As we have discussed, the proxy model over point. For the reasons set forth below, of the BCM2, that the cost of structures is must rely on the forward-looking economic we believe that these inconsistencies must be never shared among the utilities. The model cost of developing and operating the network resolved in order for the models to provide proponents should be prepared to facility and functions used to provide reasonable estimates of loop investments. supplement their current filings with services supported under Section 254(c)(1). Furthermore, the models should more documentation that supports their position Costs for providing universal service should accurately reflect the network topography regarding this issue as well as the related be based on the most efficient technology necessary to serve an area. For example, issue of whether the percentage of sharing is that can be deployed using the incumbent many rural areas are extremely high cost a function of the type of structure, e.g., is local exchange carrier’s (LEC) current wire- regions which the models currently may not there more sharing of poles than conduit? center locations. For the most part, we adequately represent. If the model does not 8. The fiber-copper cross-over point believe that the useful aspects of ‘‘forward- accurately account for extreme geographic or refers to choice of using copper or fiber looking’’ approach are captured by the least climatic conditions, it may underestimate in the feeder plant. Each model specifies cost concept. To the extent that reliable new support necessary to serve these ares and a default loop length. It then assumes technologies represent the least cost method may put continued service at risk. that, if the loop is greater than the for providing the supported services, they 5. A fill factor represents the percentage of default length, the feeder plant will be should be incorporated in the model. Firms the loop facility that is being used. Fill in a competitive market may well choose to factors must be below 100 percent because it fiber and if the loop is less than the place facilities with the capability of is necessary to have reserve capacity to default length, the feeder plant will be providing a number of competitive services replace damaged facilities and serve new copper. The cross-over point should be beyond the supported services. To the extent demand. Because it is cheaper to build plant based on engineering practice. Neither that this is true, the network we are in discrete increments rather than adding one model proponent submits studies to modelling may depart from that which a firm loop at a time, fill factors are generally lower support the engineering practice it may choose to install. However, to the extent if there is an anticipation of growth. In assumed. Commenters show that that new technologies are necessary to residential markets, telephone companies assumptions about this practice can lead provide a platform for a number of other traditionally place additional or spare to different costs. We note that an competitive services, they should not be distribution plant so customers could examination of both model results included in the model. The model should be purchase more than one line. In business sufficiently flexible to incorporate new markets, many telephone companies may shows that over 50 percent of the lines technologies as the cost of these facilities increase loop investment as part of a strategy will be served by digital loop carrier falls such that they become the most efficient to provide Centrex service. These practices connected to central offices by fiber, way to provide the supported services. In lower the fill factors. The original BCM uses while currently less than five percent of addition, the model must be sufficiently fill factors lower than those in the Hatfield lines use that type of facility. We believe flexible to include the functionalities model. BCM2, however, uses fill factors that that our forward looking cost principles necessary to provide an evolving set of are very similar to the Hatfield estimates. In would require a determination of supported services. response to the Common Carrier Bureau’s whether either of the engineering 3. Model Assumptions and Results— information request, the models’ proponents practices posited in the models is the Demand. We agree that the models should indicate that the fill factors that are least-cost method of placing loop reflect the impact on costs of the number and calculated as ratio of demand divided by the distribution of residential and business lines. number of loops constructed by the models facilities. The models start with an assignment of one are less than the input fill factors. This 10. Switching Investment. Switching residential line to each household in every occurs because cable can be purchased only investments include the cost of the census block group (CBG) reported in the in increments, such as 100 pair cable, and switch, distribution frame, power 1990 Census. The Hatfield model uses recent therefore, will always exceed the required expenses and the wire center building. Census estimates to update the 1990 Census demand. The models use only digital switches. values. Because not all households have 6. Terrain impacts refer to the effect of soil The BCM2 proponents allege that they telephone service and some households have composition, the level of the water table and have placed host, stand alone, and more than one line, the models are calibrated slope characteristics. BCM2 develops unique remote switches in wire centers to match state and study area residential factors for 54 different combinations of demand totals. Currently, the models use terrain impacts. It appears that changes in according to the current placement of data on employees per CBG to assign the terrain impacts are responsible, in part, for such switches. The Hatfield model uses relative number of business lines per CBG. the increase in BCM2 investment relative to only host switches. Commenters claim Because the ratio of business telephones to the BCM investment. The Hatfield model that these assignments do not reflect the employees is not constant across all incorporates adverse terrain conditions by forward-looking cost of switching. We industries, a model used for calculating increasing the loop length by 20 percent share the commenters’ concern universal service support would need to rather than estimating the impacts of each regarding which type of switch, host, include a better indicator of business lines terrain characteristic. Detailed stand-alone or remote is assigned to per CBG. Numerous commenters have documentation to support the terrain-impact- each wire center and suggest that further reported unexplained variations between input analysis is essential to an evaluation of model line demand and expected line the reasonableness of these assumptions. work by interested parties would clarify demand. The models should attempt to 7. Structure sharing refers to the practice this issue. We also have concerns simulate the actual location of households of sharing investments with other utilities in regarding whether switches are and the placement of facilities to reach those poles, trenches and conduits. The Hatfield included in the models that accurately households through a technically feasible model assumes that structures are shared reflect switching needs, particularly in route. equally by telephone, electric and cable sparsely populated areas. These 4. Loop Investments. Loop investments, companies; this assumption reduces the concerns should be addressed. i.e., outside plant, include the investments in assumed investment in structures to one 11. Obtaining non-proprietary cable and wire from an end user’s home or third of their estimated cost. In contrast, estimates of the cost of switches is business to the telephone company central BCM2 assumes that the telephone company difficult. The proponents of the Hatfield office. They also include the investment in is responsible for 100 percent of the structure structures that support the cable and wire, costs. The difference in the sharing model and the BCM2 obtained switch such as poles and conduits, and the cost of assumption accounts for approximately 13 to cost estimates from several sources. The placing the cable and wire. The models 15 percent of the difference in the model’s BCM2 switch input costs are lower than provide different estimates of loop forward-looking cost estimate for high cost those in BCM and now approach the investment because of different assumptions areas. We are unconvinced that sharing exists switch cost used by the Hatfield model. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63807

Moreover, the switching costs reported include maintenance expenses 18. NCTA’s ETI report asserts that in the information requests for each of associated with analog stored program regulators should rigorously evaluate the three study areas, PacTel of or electromechanical switches. the ARMIS data before accepting them California, GTE of Arkansas, and Expenses used in the models should be as a basis for forward-looking costs. Its Southwestern Bell of Texas, are very accurately reflected. investigation of a Massachusetts cost similar. 15. Joint and Common Costs. In its study reveals that a significant 12. The Hatfield model assigns over Local Competition Order, the proportion of product management 80 percent of the switch cost to Commission defined common costs as expenses are related to market supported universal services and BCM2 ‘‘costs that are incurred in connection management and planning for business assigns over 90 percent of the switch to with the production of multiple customers. NCTA argues that close services that are supported. These products or services, and remain examination of sales and advertising percentages are greater than the ratio of unchanged as the relative proportion of expenses reveals that these expenses are local usage to total usage. These those products or services varies (e.g., not related to the provision of basic assignments are higher than the usage the salaries of corporate managers).’’ residential service. It concludes that ratio because certain switch With regard to the proxy models used only four percent of marketing expenses components, such as the processor, are for the purpose of establishing universal should be assigned to the cost of allocated solely to the provision of service support the Commission must providing the supported services. We supported universal services. We determine how to allocate common agree that rigorous evaluation of the suggest that assignment of switch costs costs among the services supported by ARMIS data, to the extent ARMIS data be reviewed to determine whether a the universal service mechanism and all are used, is necessary. We are not more accurate assessment of costs be other services. willing, however, to conclude that allocated to universal support 16. The Hatfield model estimates the ARMIS data are the only data that mechanisms. common cost of corporate operations by should be used to determine retail costs. 13. Depreciation. Depreciation rates multiplying all other expenses by 10 Therefore, we are not prepared to determine the level of expenses percent. This procedure generates recommend what would be the associated with the use of investments. corporate operations expenses that are reasonable amount of retail costs. Commenters disagree on whether 19. Model results. The model results between 25 and 50 percent of the depreciation rates used in the proxy produce significantly different estimates corporate operations expenses reported models are too high or too low. Their of the nationwide total amount of in ARMIS. The BCM2 divides ARMIS positions reflect opinions regarding the support required to maintain the total corporate operations expenses for impact of competition on depreciation provision of the supported services in all reporting companies by the total rates and the extent to which the cost of high costs areas. For example, at a number of lines served by these supported services should be affected by $20.00 benchmark, using the model’s companies. It assigns 75 percent of this competitive pressures. We believe that default settings, the Hatfield model proxy models should use depreciation per-line value to the cost of providing indicates that the universal service rates that reflect economic costs and the supported services. These support would be $5.3 billion, which is should be flexible enough to permit differences explain approximately 11 the sum of $3.4 billion for large LECs depreciation rates set by regulators. percent of the difference between the and $1.9 billion for non-Tier1 LECs. The 14. Annual Charge Factors. Annual average monthly forward-looking costs BCM2, at a $20.00 benchmark, indicates charge factors or expense factors estimated by the Hatfield and BCM2 that support would be $14.6 billion. The determine the level of expenses. In the models. Further investigation is remaining difference, $9.5 billion, is a BCM2 and Hatfield proxy models, plant- required before it would be possible to function of the model input costs and specific annual charge factors are conclude that either of the proposed engineering design principles. determined as the ratio of ARMIS approaches or some other approach to 20. Another means of evaluating the expenses to investment. Several the estimation is a reasonable level of models is to compare their results to the commenters express concern that use of corporate operations expenses to be results generated by embedded-cost the ARMIS data conflicts with the desire included in calculation of the cost of studies. Because forward-looking and to develop forward-looking costs providing the supported services. embedded costs rely on different input because the ARMIS data are embedded 17. Retail Costs. Retail costs are the costs and technologies, the results from cost statistics. The proxy models do not costs associated with billing and these studies are likely to differ. We are rely on the ARMIS expenses, but rather collection, product management, sales, concerned, however, about large on the ratios of expenses to investment. and advertising and other customer changes in the relative position of the The ARMIS expense to investment ratio service expenses. The Hatfield model states when comparing our embedded is a ratio of current year expenses to excludes product management, sales, cost results to the results generated by investments purchased over many years. and advertising expenses. It includes the proxy models. The state We recommend that the level of billing and collection costs and other characteristics, such as population expenses be based on an analysis that customer services expenses. Because of density and terrain factors, that cause calculates forward-looking expenses. If these assumptions, the Hatfield model telephone companies in a state to the Commission concludes that the includes only 21 to 25 percent of exhibit high forward-looking costs in ARMIS expense ratios are a reasonable ARMIS customer operations expenses in the models, do not cause those starting position for determining its cost estimates. The BCM2 model telephone companies to exhibit forward-looking expenses, then we incorporates 75 percent of the ARMIS relatively high embedded costs. recommend that these ratios be customer operations expenses in its cost Alternatively, the change in position modified to reflect changes in the estimates. The differences in the could be caused by specific expenses required to support and treatment of customer operations management or accounting practices maintain forward-looking investments. accounts for 19 percent of the difference that affect embedded costs but that For example, because the models only between the average monthly forward- would not be reflected in forward- use digital switches, switch looking costs estimated by the Hatfield looking costs. A state’s relative position maintenance expenses should not and BCM2 models. can be measured by its rank, where the 63808 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules state with the lowest cost has a rank of predictable and sufficient mechanism to 1919 M Street, NW, Room 844, one and the state with the highest cost preserve and advance universal service. Washington, DC 20554 Emily Hoffnar would have a rank of 51. A change in Appendix II—Service List the rank order is the difference between Federal Communications Commission, the rank order estimated by a model and The Honorable Reed E. Hundt, Chairman 2100 M Street, NW, Room 8623, Federal Communications Commission, Washington, DC 20554 the rank order according to the current 1919 M Street, NW, Room 814, L. Charles Keller high cost assistance mechanism, which Washington, DC 20554 Federal Communications Commission, ranks states by embedded loop costs. The Honorable Rachelle B. Chong, 2100 M Street, NW, Room 8918, For example, the change in rank order Commissioner Washington, DC 20554 for California is three because it is the Federal Communications Commission, Lori Kenyon third lowest cost state according the 1919 M Street, NW, Room 844, Alaska Public Utilities Commission, 1016 BCM2 and it is the sixth lowest cost Washington, DC 20554 West Sixth Avenue, Suite 400, state according to the High Cost Fund. The Honorable Susan Ness, Commissioner Anchorage, AK 99501 Federal Communications Commission, David Krech There are fifteen states for which the 1919 M Street, NW, Room 832, change in rank order is greater than ten. Federal Communications Commission, Washington, DC 20554 2025 M Street, NW, Room 7130, (For those fifteen states, the change in The Honorable Julia Johnson, Commissioner cost per line per month ranged from Washington, DC 20554 Florida Public Service Commission, 2540 Debra M. Kriete Shumard Oak Blvd., Gerald Gunter $3.06 to $24.41, with an average change Pennsylvania Public Utilities Commission, Building, Tallahassee, FL 32399–0850 of $10.47.) We believe it is necessary to PO Box 3265, Harrisburg, PA 17105– The Honorable Kenneth McClure, determine why these large changes 3265 occur, and to ensure that the change in Commissioner Missouri Public Service Commission, 301 Diane Law rank order does not threaten the W. High Street, Suite 530, Jefferson City, Federal Communications Commission, provision of the supported services in MO 65101 2100 M Street, NW, Room 8920, these states. The Honorable Sharon L. Nelson, Chairman Washington, DC 20554 21. Measure of support. The two Washington Utilities and Transportation Mark Long models on the record calculate support Commission, PO Box 47250, Olympia, Florida Public Service Commission, 2540 required for the provision of the WA 98504–7250 Shumard Oak Blvd., Gerald Gunter supported services as the product of the The Honorable Laska Schoenfelder, Building, Tallahassee, FL 32399 number of lines in a geographic area and Commissioner Robert Loube Federal Communications Commission, the difference between a cost estimate South Dakota Public Utilities Commission, State Capitol, 500 E. Capitol Street, 2100 M Street, NW, Room 8914, and a uniform benchmark amount. Pierre, SD 57501–5070 Washington, DC 20554 BCM2 uses the CBG as the geographic Martha S. Hogerty Samuel Loudenslager area to measure the line count and cost Public Counsel for the State of Missouri, Arkansas Public Service Commission, PO estimate. BCM2 sums the support across PO Box 7800, Jefferson City, MO 65102 Box 400, Little Rock, AR 72203–0400 all CBGs in a state to determine the Anna Gomez, Federal Staff Chair Sandra Makeeff state-wide support level. Calculation of Federal Communications Commission, Iowa Utilities Board, Lucas State Office support at either the wire center, study 2100 M Street, NW, Room 8617, Building, Des Moines, IA 50319 area, or density zone level is not a Washington, DC 20036 Philip F. McClelland Paul E. Pederson, State Staff Chair Pennsylvania Office of Consumer standard output of the model. Further Missouri Public Service Commission, PO manipulation of the BCM2 input sheets Advocate, 1425 Strawberry Square, Box 360, Jefferson City, MO 65102 Harrisburg, Pennsylvania 17120 is required to obtain these results. The Lisa Boehley Michael A. McRae Hatfield model estimates the cost per Federal Communications Commission, D.C. Office of the People’s Counsel, 1133 CBG. The model average CBG cost 2100 M Street, NW, Room 8605, 15th Street, NW.—Suite 500, estimates across six density zones. It Washington, DC 20554 Washington, DC 20005 uses the difference between the density Charles Bolle Tejal Mehta zone average and the benchmark to South Dakota Public Utilities Commission, Federal Communications Commission, State Capitol, 500 E. Capitol Street, 2100 M Street, NW., Room 8625, determine the per-line support per Pierre, SD 57501–5070 Washington, DC 20554 density zone. It multiplies the per-line Deonne Bruning support by the number of lines per Nebraska Public Service Commission, 300 Terry Monroe density zone to estimate the density The Atrium, 1200 N Street, PO Box New York Public Service Commission, 3 zone support and then sums across all 94927, Lincoln, NE 68509–492 Empire Plaza, Albany, NY 12223 density zones to determine the support James Casserly, Senior Legal Advisor John Morabito, Deputy Chief, Accounting and Audits Division for the study area. Calculation of Office of Commissioner Susan Ness, Federal Communications Commission, Common Carrier Bureau, Federal support at either the CBG or wire center Communications Commission, 2000 L level is not a standard output of the 1919 M Street, Room 832, Washington, DC 20554 Street, NW., Suite 812, Washington, DC model. Further manipulation of the John Clark 20554 Hatfield model input sheets is required Federal Communications Commission, Mark Nadel to obtain these results. 2100 M Street, NW, Room 8619, Federal Communications Commission, 22. Any proxy model used to Washington, DC 20554 2100 M Street, NW., Room 8916, calculate universal support levels Bryan Clopton Washington, DC 20554 should be able to provide estimates of Federal Communications Commission, John Nakahata, Senior Legal Advisor support at various geographic levels 2100 M Street, NW, Room 8615, Office of Chairman Reed E. Hundt, Federal with a state, such as on a study area, Washington, DC 20554 Communications Commission, 1919 M wire center, density zone, or CBG basis. Irene Flannery Street, NW., Room 814 Washington, DC Federal Communications Commission, 20554 These estimates would enable the 2100 M Street, NW, Room 8922, Lee Palagyi Commission and state commissions to Washington, DC 20554 Washington Utilities and Transportation compare alternative decisions regarding Daniel Gonzalez, Legal Advisor Commission, 1300 South Evergreen Park support areas, and it is necessary so that Office of Commissioner Rachelle B. Chong, Drive SW., Olympia, WA 98504 we will be able to establish a specific, Federal Communications Commission, Kimberly Parker Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63809

Federal Communications Commission, ADDRESSES: Federal Communications community’s first local aural 2100 M Street, NW., Room 8609, Commission, Washington, D.C. 20554. transmission service. Channel 288A can Washington, DC 20554 In addition to filing comments with the be allotted to Redwood in compliance Barry Payne FCC, interested parties should serve the with the Commission’s minimum Indiana Office of the Consumer Counsel, distance separation requirements with a 100 North Senate Avenue, Room N501, petitioner, or its counsel or consultant, Indianapolis, IN 46204–2208 as follows: Phillip W. O’Bryan, 804 site restriction of 2.8 kilometers (1.7 Jeanine Poltronieri Clear Creek Drive, Texarkana, Texas miles) south in order to avoid a short- Federal Communications Commission, 75503 (petitioner). spacing conflict with the licensed site of 2100 M Street, NW., Room 8924, FOR FURTHER INFORMATION CONTACT: Pam Station WNLA(FM), Channel 288A, Washington, DC 20554 Blumenthal, Mass Media Bureau, (202) Indianola, Mississippi. The coordinates Michael Pryor 418–2180. for Channel 288A at Redwood are 32– Federal Communications Commission, 27–13 and 90–48–42. 2100 M Street, NW., Room 8905, SUPPLEMENTARY INFORMATION: This is a DATES: Comments must be filed on or Washington, DC 20554 synopsis of the Commission’s Notice of James Bradford Ramsay Proposed Rule Making, MM Docket No. before January 6, 1997, and reply National Association of Regulatory Utility 96–236, adopted November 15, 1996, comments on or before January 21, Commissioners, PO Box 684, and released November 22, 1996. The 1997. Washington, DC 20044–0684 full text of this Commission decision is ADDRESSES: Federal Communications Brian Roberts available for inspection and copying Commission, Washington, D.C. 20554. California Public Utilities Commission, 505 during normal business hours in the In addition to filing comments with the Van Ness Avenue, San Francisco, CA FCC, interested parties should serve the 94102 FCC’s Reference Center (Room 239), 1919 M Street, NW, Washington, D.C. petitioner, or its counsel or consultant, Gary Seigel as follows: Carl Haynes, President, Federal Communications Commission, The complete text of this decision may 2000 L Street, NW., Suite 812, also be purchased from the Dominant Communications Washington, DC 2055 Commission’s copy contractor, ITS, Inc., Corporation, P.O. Box 31235, Jackson, 2100 M Street, NW., Room 8605, (202) 857–3800, 2100 M Street, NW, Mississippi, 39286–1235. Washington, DC 20554 Suite 140, Washington, D.C. 20037. FOR FURTHER INFORMATION CONTACT: Pam Pamela Szymczak Provisions of the Regulatory Blumenthal, Mass Media Bureau, (202) Federal Communications Commission, Flexibility Act of 1980 do not apply to 418–2180. 2100 M Street, NW., Room 8912, SUPPLEMENTARY INFORMATION: This is a Washington, DC 20554 this proceeding. Lori Wright Members of the public should note synopsis of the Commission’s Notice of Federal Communications Commission, that from the time a Notice of Proposed Proposed Rule Making, MM Docket No. 2100 M Street, NW., Room 8603, Rule Making is issued until the matter 96–231, adopted November 8, 1996, and Washington, DC 20554 is no longer subject to Commission released November 15, 1996. The full consideration or court review, all ex text of this Commission decision is [FR Doc. 96–30381 Filed 11–29–96; 8:45 am] parte contacts are prohibited in available for inspection and copying BILLING CODE 6712±01±P Commission proceedings, such as this during normal business hours in the one, which involve channel allotments. FCC’s Reference Center (Room 239), 47 CFR Part 73 See 47 CFR 1.1204(b) for rules 1919 M Street, NW, Washington, D.C. governing permissible ex parte contacts. The complete text of this decision may also be purchased from the [MM Docket No. 96±236, RM±8907] For information regarding proper filing procedures for comments, see 47 Commission’s copy contractor, ITS, Inc., Radio Broadcasting Services; Wake CFR 1.415 and 1.420. (202) 857–3800, 2100 M Street, NW, Village, Texas Suite 140, Washington, D.C. 20037. List of Subjects in 47 CFR Part 73 Provisions of the Regulatory AGENCY: Federal Communications Radio broadcasting. Flexibility Act of 1980 do not apply to Commission. Federal Communications Commission. this proceeding. ACTION: Proposed rule. Members of the public should note John A. Karousos, that from the time a Notice of Proposed Chief, Allocations Branch, Policy and Rules SUMMARY: The Commission requests Rule Making is issued until the matter Division, Mass Media Bureau. comments on a petition by Phillip W. is no longer subject to Commission O’Bryan proposing the allotment of [FR Doc. 96–30587 Filed 11–29–96; 8:45 am] consideration or court review, all ex Channel 223A at Wake Village, Texas, BILLING CODE 6712±01±P parte contacts are prohibited in as the community’s first local aural Commission proceedings, such as this transmission service. Channel 223A can one, which involve channel allotments. 47 CFR Part 73 be allotted to Wake Village in See 47 CFR 1.1204(b) for rules compliance with the Commission’s [MM Docket No. 96±231, RM±8903] governing permissible ex parte contacts. minimum distance separation For information regarding proper requirements with a site restriction of Radio Broadcasting Services; filing procedures for comments, see 47 3.4 kilometers (2.1 miles) northeast to Redwood, Mississippi CFR 1.415 and 1.420. avoid a short-spacing conflict with an AGENCY: Federal Communications List of Subjects in 47 CFR Part 73 application for Channel 224C2 at Commission. Blossom, Texas. The coordinates for Radio broadcasting. ACTION: Proposed rule. Channel 223A at Wake Village are 33– Federal Communications Commission. 25–09 and 94–04–18. SUMMARY: The Commission requests John A. Karousos, DATES: Comments must be filed on or comments on a petition by Dominant Chief, Allocations Branch, Policy and Rules before January 13, 1997 and reply Communications Corporation proposing Division, Mass Media Bureau. comments on or before January 28, the allotment of Channel 288A at [FR Doc. 96–30585 Filed 11–29–96; 8:45 am] 1997. Redwood, Mississippi, as the BILLING CODE 6712±01±P 63810 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules

47 CFR Part 73 consideration or court review, all ex Federal Communications Commission. parte contacts are prohibited in John A. Karousos, [MM Docket No. 96±233; RM±8908] Commission proceedings, such as this Chief, Allocations Branch, Policy and Rules Radio Broadcasting Services; Cle one, which involve channel allotments. Division, Mass Media Bureau. Elum, Washington See 47 CFR 1.1204(b) for rules [FR Doc. 96–30583 Filed 11–29–96; 8:45 am] governing permissible ex parte contacts. BILLING CODE 6712±01±P AGENCY: Federal Communications For information regarding proper Commission. filing procedures for comments, see 47 ACTION: Proposed rule. CFR 1.415 and 1.420. 47 CFR Part 73

SUMMARY: The Commission requests List of Subjects in 47 CFR Part 73 [MM Docket No. 96±230, RM±8911] comments on a petition filed by Brian Radio broadcasting. Radio Broadcasting Services; Levan, J. Lord proposing the allotment of Federal Communications Commission. Utah Channel 229A at Cle Elum, Washington, John A. Karousos, as the community’s first local aural AGENCY: Federal Communications transmission service. Channel 229A can Chief, Allocations Branch, Policy and Rules Commission. Division, Mass Media Bureau. be allotted to Cle Elum in compliance ACTION: Proposed rule. with the Commission’s minimum [FR Doc. 96–30584 Filed 11–29–96; 8:45 am] distance separation requirements with a BILLING CODE 6712±01±P SUMMARY: The Commission requests site restriction of 10.4 kilometers (6.4 comments on a petition by Windy miles) southeast to avoid a short-spacing Valley Broadcasting, proposing the to the licensed site of Station KMPS– 47 CFR Part 73 allotment of Channel 268A to Levan, FM, Channel 231C, Seattle, Washington. Utah, as the community’s first local The coordinates for Channel 229A at Cle [MM Docket No. 96±178; RM±8865] aural transmission service. Channel Elum are North Latitude 47–07–36 and 268A can be allotted to Levan in West Longitude 120–50–41. Since Cle Radio Broadcasting Services; Hollis, compliance with the Commission’s Elum is located within 320 kilometers Oklahoma minimum distance separation (200 miles) of the U.S.-Canadian border, AGENCY: Federal Communications requirements without the imposition of concurrence of the Canadian Commission. a site restriction. The coordinates for government has been requested. Channel 268A at Levan are 39–33–18 ACTION: Proposed rule; dismissal. DATES: Comments must be filed on or and 111–51–42. before January 6, 1997, and reply SUMMARY: The Commission, at the DATES: Comments must be filed on or comments on or before January 21, request of The Hollis Group, dismisses before January 6, 1997, and rely 1997. its petition to delete Channel 223A and comments on or before January 21, ADDRESSES: Federal Communications allot Channel 267C3 at Hollis, 1997. Commission, Washington, D.C. 20554. Oklahoma. The Commission retains ADDRESSES: Federal Communications In addition to filing comments with the vacant and unapplied-for Channel 223A Commission, Washington, D.C. 20554. FCC, interested parties should serve the at Hollis, Oklahoma, as the community’s In addition to filing comments with the petitioner, or its counsel or consultant, only potential local aural service. See 61 FCC, interested parties should serve the as follows: Brian J. Lord, 3824 SW FR 48660, September 16, 1996. The petitioner, or its counsel or consultant, Myrtle Street, Seattle, Washington petitioner withdrew its intention to as follows: Victor A. Michael Jr., 98126–3210 (Petitioner). apply for Channel 267C3 if allotted to President, Windy Valley Broadcasting, FOR FURTHER INFORMATION CONTACT: Hollis and no other party expressed an c/o Magic City Media, 1912 Capitol Sharon P. McDonald, Mass Media interest in applying for Channel 267C3. Avenue, Suite 300, Cheyenne, Wyoming Bureau, (202) 418–2180. With this action, this proceeding is 82001 (Petitioner). SUPPLEMENTARY INFORMATION: This is a terminated. FOR FURTHER INFORMATION CONTACT: Pam synopsis of the Commission’s Notice of FOR FURTHER INFORMATION CONTACT: Blumenthal, Mass Media Bureau, (202) Proposed Rule Making, MM Docket No. Leslie K. Shapiro, Mass Media Bureau, 418–2180. 96–233, adopted November 8, 1996, and (202) 418–2180. SUPPLEMENTARY INFORMATION: This is a released November 15, 1996. The full SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission’s Notice of text of this Commission decision is synopsis of the Commission’s Report Proposed Rule Making, MM Docket No. available for inspection and copying and Order, MM Docket No. 96–178, 96–230, adopted November 8, 1996, and during normal business hours in the adopted November 8, 1996, and released released November 15, 1996. The full FCC Reference Center (Room 239), 1919 November 15, 1996. The full text of this text of this Commission decision is M Street, N.W., Washington, D.C. The Commission decision is available for available for inspection and copying complete text of this decision may also inspection and copying during normal during normal business hours in the be purchased from the Commission’s business hours in the FCC Reference FCC’s Reference Center (Room 239), copy contractor, International Center (Room 239), 1919 M Street, NW, 1919 M Street, NW, Washington, D.C. Transcription Service, Inc., (202) 857– Washington, D.C. The complete text of The complete text of this decision may 3800, 2100 M Street, N.W., Suite 140, this decision may also be purchased also be purchased from the Washington, D.C. 20037. from the Commission’s copy contractor, Commission’s copy contractor, ITS, Inc., Provisions of the Regulatory International Transcription Service, (202) 857–3800, 2100 M Street, NW, Flexibility Act of 1980 do not apply to Inc., (202) 857–3800, 2100 M Street, Suite 140, Washington, D.C. 20037. this proceeding. N.W., Suite 140, Washington, D.C. Provisions of the Regulatory Members of the public should note 20037. Flexibility Act of 1980 do not apply to that from the time a Notice of Proposed this proceeding. Rule Making is issued until the matter List of Subjects in 47 CFR Part 73 Members of the public should note is no longer subject to Commission Radio broadcasting. that from the time a Notice of Proposed Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63811

Rule Making is issued until the matter may also be purchased from the Stillwell (202–418–2470) or Robert is no longer subject to Commission Commission’s copy contractors, Eckert (202–418–2470), Office of consideration or court review, all ex International Transcription Services, Engineering and Technology. parte contacts are prohibited in Inc., 2100 M Street, N.W., Suite 140, SUPPLEMENTARY INFORMATION: Commission proceedings, such as this Washington, D.C. 20037, (202) 857– one, which involve channel allotments. 3800. 1. On July 25, 1996, the Commission See 47 CFR 1.1204(b) for rules Provisions of the Regulatory adopted a Sixth Further Notice of governing permissible ex parte contacts. Flexibility Act of 1980 do not apply to Proposed Rule Making (Sixth FNPRM) For information regarding proper this proceeding. in MM Docket No. 87–268, 61 FR 43209, filing procedures for comments, see 47 Members of the public should note August 21, 1996, that proposed policies CFR 1.415 and 1.420. that from the time a Notice of Proposed for developing the initial channel Rule Making is issued until the matter List of Subjects in 47 CFR Part 73 allotments for digital TV (DTV) service, is no longer subject to Commission proposed procedures for assigning DTV Radio broadcasting. consideration or court review, all ex allotments, and plans for spectrum Federal Communications Commission. parte contacts are prohibited in recovery. The Sixth FNPRM also John A. Karousos, Commission proceedings, such as this contains a draft DTV Table of Chief, Allocations Branch, Policy and Rules one, which involve channel allotments. Allotments. Comments and reply Division, Mass Media Bureau. See 47 CFR 1.1204(b) for rules comments responding to the Sixth [FR Doc. 96–30582 Filed 11–29–96; 8:45 am] governing permissible ex parte contact. FNPRM were due November 22, 1996, For information regarding proper BILLING CODE 6712±01±P and December 23, 1996, respectively. filing procedures for comments, see 47 CFR 1.415 and 1.420. 2. On November 13, 1996, Cohen, Dippell and Everist (CDE), a consulting 47 CFR Part 73 List of Subjects in 47 CFR Part 73 engineering firm, submitted a request [MM Docket No. 96±229, RM±8919] Radio broadcasting. seeking to extend the dates for filing Federal Communications Commission. comments and reply comments in Radio Broadcasting Services; response to the Sixth FNPRM. It asks Boonville, Missouri John A. Karousos, Chief, Allocations Branch Policy and Rules that the comment and reply dates be AGENCY: Federal Communications Division, Mass Media Bureau. extended 60 days. CDE argues that this Commission. [FR Doc. 96–30581 Filed 11–29–96; 8:45 am] additional time is needed to study the ACTION: Proposed rule. BILLING CODE 6712±01±P multiple technical issues related to DTV operation, including propagation, SUMMARY: This document requests protection ratios to and from other radio comments on a petition filed by Big 47 CFR Part 73 services, out-of band emissions, use of Country of Missouri proposing the channel 6, alternative allotment [MM Docket No. 87±268; FCC DA96±1929] allotment of Channel 226A to Boonville, possibilities, etc. that are addressed in Missouri, as that community’s second the Sixth FNPRM. local FM broadcast service. The Advanced Television Systems and coordinates for Channel 226A are 38– Their Impact on the Existing Television 3. A number of parties representing 58–00 and 92–35–54. There is a site Service broadcast interests, including ABC, ALTV, APTS, CBS, Chris Craft, MSTV, restriction 11.9 kilometers (7.4 miles) AGENCY: Federal Communications east of the community. Commission. NAB, NBC PBS, and Tribune (Broadcasters) submitted a joint DATES: Comments must be filed on or ACTION: Proposed rule; extension of opposition to CDE’s request for an before January 6, 1997, and reply time. comments on or before January 21, extension of time. Broadcasters submit 1997. SUMMARY: The Commission is extending that it is important that the Commission ADDRESSES: Federal Communications the time for filing reply comments adopt a DTV Table as soon as possible. Commission, Washington, D.C. 20554 In relating to the Sixth Further Notice of They argue this is the only way to addition to filing comments with the Proposed Rule Making in this ensure that the long-awaited DTV FCC, interested parties should serve the proceeding until January 10, 1997. The service is licensed in the very near petitioner, as follows: Richard L. Commission also indicates that it will future. They observe that the DTV Billings, Big Country of Missouri, Inc., accept late-filed comments for a transmission standard and planning 1600 Radio Hill Road, Boonville, reasonable period of time after the factors used to allot and assign DTV Missouri 65333. November 22, 1996, due date for channels have been under study for FOR FURTHER INFORMATION CONTACT: comments. This action will allow the nine years. Broadcasters further state, Kathleen Scheuerle, Mass Media development of a complete record on however, that they recognize the Bureau, (202) 418–2180. the matter of channel allotments for importance of providing an opportunity operation of digital TV service. SUPPLEMENTARY INFORMATION: This is a to fully study and to comment summary of the Commission’s Notice of DATES: Comments received after the meaningfully on the Sixth FNPRM. They Proposed Rule Making, MM Docket original November 22, 1996, due date therefore urge that instead of extending No.96–229, adopted November 8, 1996 will be accepted for a reasonable period the time in which to file all comments, and released November 15, 1996. The of time; reply comments must be the Commission should: (1) accept late full text of this Commission decision is received on or before January 10, 1997. filed comments for a reasonable period available for inspection and copying ADDRESSES: Federal Communications time, and (2) extend the time for filing during normal business hours in the Commission, 1919 M Street, N.W., reply comments to January 10, 1997. Commission’s Reference Center (Room Washington, D.C. 20554. Broadcasters submit that, with the 239), 1919 M Street, NW, Washington, FOR FURTHER INFORMATION CONTACT: approach of the holiday season, this D.C. The complete text of this decision Bruce Franca (202–418–2470), Alan approach should give all parties an 63812 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules opportunity to prepare fully developed DEPARTMENT OF COMMERCE 1325 East-West Highway, Silver Spring, comments. MD 20910; National Oceanic and Atmospheric 4. In a letter of November 19, 1996, 2. Monday, December 9, 1996, 6:30 to Administration 9:30 p.m.—Virgin Islands Gamefish CDE stated that after reviewing the Association, Red Hook, St. Thomas, Broadcasters opposition filing, it now 50 CFR Parts 285, 630, 644, and 678 USVI 00802; intends to offer comments that advance [I.D. 112296A] 3. Tuesday, December 10, 1996, 6 to an alternative procedure that would 9 p.m.—NMFS Southeast Regional provide flexibility in resolving the Atlantic Highly Migratory Species Office, 9721 Executive Center Drive, numerous technical issues that impact Fisheries; Consolidation of North, St. Petersburg, FL 33702; DTV allotments. CDE therefore amended Regulations 4. Tuesday, December 10, 1996, 7 to its earlier request to support the 10 p.m.—Ponce Hilton, Malecon comment date plan suggested by the AGENCY: National Marine Fisheries Avenue, Playa de Ponce, Ponce, PR Broadcasters. Service (NMFS), National Oceanic and 00732; Atmospheric Administration (NOAA), 5. Wednesday, December 11, 1996, 6 5. We agree with the Broadcasters that Commerce. it is desirable to complete our action to 10 p.m.—Kings Grant Quality Inn, ACTION: adopting an initial DTV Table of Public hearings; request for Route 128 at Trask Lane, Danvers, MA comments. Allotments as soon as possible. We find 01923; 6. Friday, December 13, 1996, 7:00 to that the alternative plan for filing SUMMARY: NMFS will hold six public 9:30 p.m.—North Carolina Aquarium, comments and reply comments hearings to receive comments from Airport Road, Manteo, NC 27954. suggested by the Broadcasters, rather fishery participants and other members The meeting locations are physically than that originally suggested by CDE, is of the public on the proposed accessible to people with disabilities. appropriate in the interests of consolidation of existing Highly Requests for sign language developing a complete record on the Migratory Species (HMS) regulations. interpretation or other auxiliary aids DTV channel allotment matter and of The proposed rule would provide the should be directed to Christopher accommodating the demands of the public with a single reference source for Rogers at (301) 713–2347 at least 5 days holiday season. We therefore are the regulations applying to Atlantic prior to the meeting date. extending the date for filing reply tunas, swordfish, billfish, and sharks, To accommodate people unable to comments to January 10, 1997. In which is clearer and easier to use than attend a hearing or wishing to provide addition, we will accept late-filed the existing regulations. The proposed additional comments, NMFS also comments that are filed within a rule is part of the President’s Regulatory solicits written comments on the reasonable period of time after the Reinvention Initiative. proposed rule. November 22, 1996, due date for DATES: See SUPPLEMENTARY INFORMATION Authority: 16 U.S.C. 971 et seq.; 16 U.S.C. comments. for specific dates and times of hearings. 1801 et seq. Written comments and suggestions on 6. Accordingly, It is ordered that Dated: November 25, 1996. the consolidation must be received on Broadcasters’ request that we accept or before December 23, 1996. George Darcy, late-filed comments for a reasonable Acting Office Director, Office of Sustainable ADDRESSES: See SUPPLEMENTARY period of time and that we provide Fisheries, National Marine Fisheries Service. INFORMATION for locations of the additional time for the filing of reply [FR Doc. 96–30570 Filed 11–29–96; 8:45 am] hearings. Written comments should be comments, as supported by CDE in its BILLING CODE 3510±22±F sent to Christopher Rogers, Office of supplemental filing, Is granted as Sustainable Fisheries, (F/SF1), National indicated herein. It is further ordered Marine Fisheries Service, 1315 East- 50 CFR Part 679 the time for filing reply comments West Highway, Silver Spring, MD relating to the Sixth FNPRM is extended 20910. Copies of the proposed rule are [Docket No. 961121323±6323±01; I.D. to January 10, 1997. This action is taken available from the same address. 111396C] pursuant to authority found in Sections FOR FURTHER INFORMATION CONTACT: RIN 0648±AJ05 4(i) and 303(r) of the Communications Christopher Rogers, (301) 713–2347. Act of 1934, as amended, 47 U.S.C. Fisheries in the Exclusive Economic SUPPLEMENTARY INFORMATION: A §§ 154(i) and 303(r), and Sections complete description of the measures, Zone Off Alaska; Groundfish of the 0.202(b), 0.283 and 1.45 of the and the purpose and need for the Bering Sea and Aleutian Islands Area; Commission’s rules, 47 CFR §§ 0.204(b), proposed action, are contained in the Increase Halibut Quota Share Use 0.283 and 1.45. proposed rule published November 6, Limits in Area 4 Federal Communications Commission. 1996 (61 FR 57361) and are not repeated AGENCY: National Marine Fisheries William F. Caton, here. Service (NMFS), National Oceanic and Acting Secretary. NMFS requests comments or Atmospheric Administration (NOAA), suggestions for further consolidation or [FR Doc. 96–30542 Filed 11–29–96; 8:45 am] Commerce. elimination of obsolete or duplicative ACTION BILLING CODE 6712±01±P : Proposed rule; request for provisions contained in the proposed comments. revision to Atlantic HMS regulations. Comments concerning the impacts of SUMMARY: NMFS proposes to implement identified and or other substantive a regulatory amendment to the changes are also requested. Individual Fishing Quota (IFQ) Program The public hearings are scheduled as for fixed gear Pacific halibut fisheries in follows: and off Alaska. This action would 1. Monday, December 9, 1996, 1 to 3 increase halibut quota share (QS) use p.m.—NOAA Building 2, Room 14316, limits for QS holders in IFQ regulatory Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63813 areas 4A, 4B, 4C, 4D, and 4E (Area 4) authority to implement such allocation vary from year to year—a fisherman’s of the Bering Sea and Aleutian Islands measures through a regulatory QS holdings that are at the use limit in (BSAI). This action is necessary to amendment. one year could exceed the use limit in increase individual harvest limits of IFQ Limits on QS use were created in another year without the fisherman halibut in Area 4 and is intended to response to concerns that an adding more QS to his holdings. improve the profits for IFQ halibut unrestricted market for QS could result At its meeting in January 1996, the fishermen operating in Area 4. in a few powerful interests controlling Council initiated an analysis of options DATES: Comments on the proposed rule most of the IFQ landings and thus result for increasing Area 4 halibut use limits and supporting documents must be in excessive decreases in the number from the current one-half percent to a received by January 2, 1997. and demographic distribution of vessels range of from 1 percent to 2 percent and, ADDRESSES: Comments must be sent to and fishermen participating in the fixed at its next meeting in April 1996, Ronald J. Berg, Chief, Fisheries gear halibut fishery. The use limits approved the analysis for public review. Management Division, Alaska Region, restrict the amount of QS that a single The Council took final action to NMFS, Room 453, 709 West 9th Street, QS holder may use to harvest IFQ recommend a regulatory amendment 1 Juneau, AK 99801, or P.O. Box 21668, species. Current regulations at 50 CFR increasing the use limits to 1 ⁄2 percent Juneau, AK 99802, Attention: Lori J. 679.42(f)(3) allow a single QS holder to at its meeting in June 1996. Under this 1 Gravel. use no more than ⁄2 percent (0.005) of proposal, the halibut QS use limit in Copies of the environmental the total amount of halibut QS for IFQ Area 4 would be increased from one- assessment/regulatory impact review/ regulatory areas 4A, 4B, 4C, 4D, and 4E half percent to 11⁄2 percent of the QS initial regulatory flexibility analysis combined, unless the amount in excess pool. This would allow halibut QS (EA/RIR/IRFA) are available from the of this limit was received in the initial holders currently at the present limit to North Pacific Fishery Management allocation of QS. The 1⁄2 percent limit increase their QS and would provide Council, 605 West 4th Avenue, Suite for these regulatory areas combined greater economic incentive to harvest 306, Anchorage, AK 99501. limited QS use to 165,015 QS units per halibut in remote areas of the western FOR FURTHER INFORMATION CONTACT: IFQ holder in 1996. BSAI. The amount of halibut, in pounds, Current regulations at 50 CFR 679.42 James Hale, 907–586–7228. that a fisherman is allowed to harvest set the use limit as a percentage of the SUPPLEMENTARY INFORMATION: each year is calculated annually by QS pool in any given year; this action 1 Background dividing the number of QS units a would set the use limit for Area 4 at 1 ⁄2 fisherman holds by the QS pool, the percent of the 1996 QS pool for a total The fixed gear halibut fishery is total of all QS for each respective IFQ of 495,044 QS units. For consistency, managed by the IFQ Program, a limited regulatory area. From the resulting regulations at 50 CFR 679.42(f) (1) and access system for fixed gear Pacific figure is derived the percentage of the (2), which set halibut QS use limits for halibut (Hippoglossus stenolepis) and catch limit of halibut that a fisherman IFQ regulatory areas 2C, 3A, and 3B, sablefish (Anoplopoma fimbria) may harvest in each IFQ regulatory area would be revised also to set the halibut fisheries in and off Alaska. The North for which the fisherman holds QS. This QS use limit for all IFQ regulatory areas Pacific Fishery Management Council percentage is then multiplied by the at a fixed number of QS units rather (Council), under authority of the catch limit in each IFQ regulatory area than a percentage of the annual QS pool. Magnuson-Stevens Fishery determined annually for halibut by the By setting the use limit at a fixed Conservation and Management Act and IPHC. The mathematical formula for number of QS units, this action would the Northern Pacific Halibut Act of 1982 deriving IFQ pounds from QS is given provide QS holders with an unchanging (Halibut Act), recommended the IFQ at 50 CFR 679.40(c). Because the total QS limit that will not vary according to Program to reduce excessive fishing allowable catch can change annually in the size of the QS pool. While the capacity, while maintaining the social response to changes in fish stocks, IFQ amount of IFQ produced from a certain and economic character of the fixed gear based on a certain amount of QS can amount of QS will vary from year to fishery and the Alaskan coastal also vary from year to year. The QS pool year, an invariable use limit would communities where many of these can also change as appeals are decided allow QS holders to judge more fishermen are based. NMFS and additional QS issued, or as QS are accurately whether their holdings implemented the IFQ Program in 1995. revoked due to violations. exceed the use limit. Various constraints were placed on QS In 1995, representatives of the fishing and IFQ that limit consolidation of QS industry testified to the Council that the Classification and ensure that practicing fishermen, limited profits available from halibut This proposed rule has been rather than investment speculators, harvests under the 1⁄2 percent limit were determined to be not significant for retain harvesting privileges. Use limits insufficient to justify the expense of purposes of E.O. 12866. on BSAI sablefish QS are written into traveling to remote fishing grounds in The Council prepared an IRFA as part the Fishery Management Plan (FMP) for the western BSAI. To further exacerbate of the RIR, which describes the impact the Groundfish Fishery of the Bering this problem, most QS are distributed this proposed rule would have on small Sea and Aleutian Islands Area. This among IFQ regulatory areas 4A, 4B, 4C, entities, if adopted. A copy is available action does not propose any change to 4D, and 4E. Hence, QS units result in (see ADDRESSES). Approximately 500 sablefish QS use limits. No FMP for differing amounts of IFQ poundage for halibut QS holders in regulatory areas halibut exists; the halibut fishery is each specific regulatory area. For 4A through 4D would benefit from an subject to the regulations of the example, in 1996, the Area 4 use limit increase in the Area 4 QS use limit, International Pacific Halibut of 1⁄2 percent (165,015 QS units) either as QS buyers or sellers. Area 4E Commission (IPHC) and additional resulted in 32,813 IFQ lb for IFQ would not be affected by this action, management measures developed by the regulatory area 4B, but only 16,005 IFQ because all of the halibut QS in this area Council that allocate harvesting lb for IFQ regulatory area 4C. Moreover, is assigned to the CDQ Program, which privileges among U.S. fishermen. The because the current use limit is would not be impacted by this rule. Halibut Act provides NMFS, in expressed as a percentage of the QS Under this proposed action, 45 QS consultation with the Council, with pool—and the size of the QS pool can holders would be allowed to increase 63814 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules their holdings above the current limit to (3) IFQ regulatory areas 4A, 4B, 4C, Management Division, Alaska Region, the new limit. Because blocked QS are 4D, and 4E. 495,044 units of halibut QS. NMFS, P.O. Box 21668, Juneau, AK, limited by block and vessel category * * * * * 99802–1668, Attn: Lori Gravel, or restrictions, unblocked QS units are [FR Doc. 96–30634 Filed 11–29–96; 8:45 am] delivered to the Federal Building, 709 more likely to be transferred. The BILLING CODE 3510±22±P West 9th Street, Juneau, AK. Copies of unblocked halibut QS units in proposed Amendment 41 and the regulatory areas 4A through 4D equal Environmental Assessment/Regulatory approximately 2.1 million lb (952 metric 50 CFR Part 679 Impact Review/Initial Regulatory tons) of halibut worth more than $4.6 Flexibility Analysis are available from million in exvessel value. Therefore, [I.D. 112596C] the Council, 605 West Fourth Ave., this proposed action would have a RIN 0648±AI62 Anchorage, AK 99501–2252; telephone significant positive impact on a 907–271–2809. substantial number of small businesses. Fisheries of the Exclusive Economic FOR FURTHER INFORMATION CONTACT: Kim It would significantly improve the Zone Off Alaska; Groundfish of the S. Rivera, 907–586–7228. profitability of operations for fishermen Bering Sea and Aleutian Islands Area; wishing to harvest IFQ halibut in remote Prohibited Species Catch Limits for SUPPLEMENTARY INFORMATION: The areas of the western BSAI. Tanner Crab Magnuson-Stevens Fishery Conservation and Management Act List of Subjects in 50 CFR Part 679 AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and (Magnuson-Steven Act) requires that Alaska fisheries, Reporting and Atmospheric Administration (NOAA), each Regional Fishery Management recordkeeping requirements. Commerce. Council submit any fishery management plan or plan amendment it prepares to ACTION: Notice of availability of an Dated: November 25, 1996. NMFS for review and approval, amendment to the Fishery Management Gary Matlock, disapproval, or partial approval. The Plan for the Groundfish Fishery of the Acting Assistant Administrator for Fisheries, Bering Sea and Aleutian Islands Area; Magnuson-Stevens Act also requires National Marine Fisheries Service. request for comments. that NMFS, upon receiving a plan or amendment, immediately publish a For the reasons set out in the SUMMARY: document that the plan or amendment preamble, 50 CFR Part 679 is proposed The North Pacific Fishery is available for public review and to be amended as follows: Management Council (Council) has submitted Amendment 41 to the Fishery comment. PART 679ÐFISHERIES IN THE Management Plan for the Groundfish Amendment 41 would adjust the PSC EXCLUSIVE ECONOMIC ZONE OFF Fishery of the Bering Sea and Aleutian limits for Tanner crab (C. bairdi) in ALASKA Islands Area (FMP) for Secretarial Zones 1 and 2 of the Bering Sea based review. Amendment 41 would adjust on the total abundance of C. bairdi crab 1. The authority citation for 50 CFR the prohibited species catch (PSC) limits as indicated by the NMFS bottom trawl Part 679 continues to read as follows: for Tanner crab (Chionoecetes bairdi) (C. survey. The PSC limits would be bairdi) in Zones 1 and 2 of the Bering determined on an annual basis as part Authority: 16 U.S.C. 773 et seq., 1801 et Sea. This action is necessary to protect seq. of the annual BSAI groundfish the C. bairdi stock in the Bering Sea, specification process, after consultation 2. In § 679.42, paragraphs (f)(1) which has declined to a level that with the Council. through (f)(3) are revised to read as presents a serious conservation NMFS will consider the public follows: problem. The intended effect of the comments received during the comment proposed action is to further limit crab § 679.42 Limitations on use of QS and IFQ. period in determining whether to bycatch in the Bering Sea groundfish approve the proposed amendment. * * * * * fisheries. DATES: Comments on the FMP Dated: November 26, 1996. (f) * * * amendment must be received by January Gary Matlock, (1) IFQ regulatory area 2C. 599,799 31, 1997. Acting Assistant Administrator for Fisheries, units of halibut QS. ADDRESSES: Comments on the proposed National Marine Fisheries Service. (2) IFQ regulatory areas 2C, 3A, and FMP amendment must be submitted to [FR Doc. 96–30633 Filed 11–29–96; 8:45 am] 3B. 3,005,646 units of halibut QS. Ronald J. Berg, Chief, Fisheries BILLING CODE 3510±22±P 63815

Notices Federal Register Vol. 61, No. 232

Monday, December 2, 1996

This section of the FEDERAL REGISTER Alexandria, Virginia 22302. Telephone: name, home address, SSN, and date of contains documents other than rules or (703) 305–2419. birth) pertaining to the owners or proposed rules that are applicable to the FOR FURTHER INFORMATION CONTACT: officers, is entered into the FCS’ public. Notices of hearings and investigations, Joseph M. Scordato, FCS Privacy Act computer database (i.e., Store Tracking committee meetings, agency decisions and and Redemption Subsystem (STARS)). rulings, delegations of authority, filing of Officer, Room 308, 3101 Park Center petitions and applications and agency Drive, Alexandria, Virginia 22302. STARS is used primarily for tracking statements of organization and functions are Telephone: (703) 305–2244. the authorization and food stamp examples of documents appearing in this SUPPLEMENTARY INFORMATION: In redemption activity of owners and section. accordance with section 9 of the Food officers of concerns currently Stamp Act of 1977, as amended, (7 participating in the Food Stamp U.S.C. 2018), and USDA FSP regulations Program, as well as those owners and DEPARTMENT OF AGRICULTURE (7 CFR part 278), each retail or officers who have previously wholesale food store or other eligible participated in the program. Office of the Secretary entity that desires to participate or Recently, FCS was given broader authority with respect to the use and Privacy Act; System of Records continue to participate in the FSP must file such application for authorization or disclosure of the personal identifying AGENCY: Office of the Secretary, USDA. reauthorization as prescribed by FCS. information provided by applicant The information provided in the owners and officers on their application ACTION: Notice of New Privacy Act application for authorization or for authorization or reauthorization. System of Records—Food Stamp Section 203 of the Food Stamp Program Program Retailer Information. reauthorization is used to determine whether a retail or wholesale store or Improvements Act of 1994 (Pub. L. 103– 225, 108 Stat. 106) amended section 9(c) SUMMARY: The United States Department other entity, such as private restaurants of Agriculture (USDA), Food and that qualify to participate in the special of the Food Stamp Act to expand the Consumer Service (FCS), is proposing to restaurant program to serve elderly, use and disclosure of information establish a new system of records in homeless and disabled FSP recipients, obtained from applicant and accordance with the Privacy Act of qualifies or continues to qualify to participating retail or wholesale food 1974. This system of records, entitled participate in the FSP, to monitor concerns and other entities, such as Food Stamp Program Retailer compliance with program regulations, food stamp redemption data, as well as Information, USDA/FCS–9, is necessary and for program management. information about ownership (excluding in order for FCS to administer the Section 1735 of the Food, Agriculture, SSNs and EINs) and sales data included enforcement provisions of section 9 of Conservation, and Trade Act of 1990 on the initial application, in addition to the Food Stamp Act of 1977, as (Pub. L. 101–624, 104 Stat. 3359) information required to be submitted for amended. Information contained in this amended section 205(c)(2)(C)(iii) of the purposes of determining whether a system of records will be used to Social Security Act (42 U.S.C. retailer or wholesaler or other concern determine whether retail or wholesale 405(c)(2)(C)(iii)) and added section continues to qualify. USDA/FCS may store owners and officers, and/or 6109(f) to the Internal Revenue Code of release this information to other Federal owners and officers associated with 1986 (26 U.S.C. 6109(f)) to authorize agencies or to State government other entities authorized to redeem food FCS to request each applicant retail or agencies, for the purpose of stamps, such as private restaurants that wholesale store or other entity to administering and enforcing the Food qualify to participate in the special furnish FCS the Social Security Number Stamp Act as well as any other Federal restaurant program to serve elderly, (SSN) of each individual who is an or State laws. homeless and disabled Food Stamp officer of a corporate applicant and, in In addition, section 316 of the Social Program (FSP) recipients, qualify to the case of a privately owned applicant, Security Independence and Program participate or continue to participate in the SSN of each owner, as well as the Improvements Act of 1994 (Pub. L. 103– the FSP, to monitor compliance with employer identification numbers (EINs) 296, 108 Stat. 1464) expanded the program regulations, and for program assigned to the applicant by the Internal authority of FCS to share SSNs and EINs management. Revenue Service. Public Law 101–624 of food stamp retailers or wholesalers also provided that no officer or with other Federal agencies to the extent EFFECTIVE DATE: This notice will be employee of USDA may have access to that the Secretary of Agriculture effective, without further notice, January the SSN or EIN information provided in determines sharing would assist another 13, 1997, unless modified by a the applications for any purpose other Federal agency, which otherwise has subsequent notice to incorporate than the establishment and maintenance access to SSNs and EINs in accordance comments received from the public. of a list of such individuals for use in with applicable Federal law, in Comments must be received by the determining those applicants who have verifying and matching information. contact person listed below on or before been previously sanctioned or convicted The recipient agency may use the January 21, 1997, to be assured of under sections 12 or 15 of the Food information so supplied only for the consideration. Stamp Act (7 U.S.C. 2021 or 2024). purpose of enforcing Federal laws. The ADDRESSES: Comments should be When FCS determines that a store or SSNs and EINs of owners and officers addressed to: Thomas O’Connor, other concern qualifies to participate in will not be shared with State entities. Director, Benefit Redemption Division, the FSP, the information provided by A ‘‘Report on New System,’’ required Food and Consumer Service, USDA, the applicant on the application by 5 U.S.C. 552a(r), as implemented by Room 706, 3101 Park Center Drive, including the personal information (i.e., OMB Circular A–130, was sent to the 63816 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Chairman, Senate Committee on Privacy Act when associated with the the use of such records by DOJ, the Governmental Affairs, the Chairman, personal information of owners and court or other tribunal, or the other House Committee on Government officers of such entities. party before such tribunal is relevant Operations, and to the Administrator, and necessary to the litigation; Office of Information and Regulatory AUTHORITY FOR MAINTENANCE OF THE SYSTEM: provided, however, that in each case, Affairs, of the Office of Management and Section 9 of the Food Stamp Act of USDA determines that such disclosure Budget on November 18, 1996. 1977, as amended, (7 U.S.C. 2018); is compatible with the purpose for section 1735 of the Food, Agriculture, which the records were collected. Signed at Washington, DC, on November Conservation, and Trade Act of 1990 18, 1996. (2) In the event that material in this (Pub. L. 101–624, 104 Stat. 3359); system indicates a violation of the Food Dan Glickman, section 205(c)(2)(C) of the Social Stamp Act or any other Federal or State Secretary of Agriculture. Security Act (42 U.S.C. 405(c)(2)(C)); law whether civil or criminal or SYSTEM NAME: USDA/FC5–9 and section 6109(f) of the Internal regulatory in nature, and whether Revenue Code of 1986 (26 U.S.C. Food Stamp Program Retailer arising by general statute, or by 6109(f)). Information. regulation, rule or order issued pursuant thereto, USDA/FCS may disclose the PURPOSE: SECURITY CLASSIFICATION: relevant records to the appropriate This information will be shared with None. agency, whether Federal or State, other Federal and State entities to assist charged with the responsibility of SYSTEM LOCATION: in the administration and enforcement investigating or prosecuting such The paper records (i.e., the of the Food Stamp Act, as well as other violation or charged with enforcing or applications for authorization and Federal and State laws. STARS is used implementing the statute, or rule, reauthorization) which contain the primarily for tracking the authorization regulation or order issued pursuant personal identifying information on and food stamp redemption activity of thereto. retail and wholesale store owners and owners and officers of entities currently (3) USDA/FCS may disclose records officers, and/or owners and officers participating in the Food Stamp from this system of records to a associated with other entities, are Program, as well as those owners and congressional office from the record of located in FCS field offices throughout officers who have previously an individual provided that individual the United States. The location of each participated in the Food Stamp gave the congressional office permission FCS field office may be found in the Program. to inquire on his or her behalf. (4) USDA/FCS may disclose local phone books. The host computer ROUTINE USES OF RECORDS MAINTAINED IN THE database which contains the STARS SYSTEM, INCLUDING CATEGORIES OF USERS AND information from this system of records database, is located at the Minneapolis THE PURPOSES OF SUCH USES: to the Internal Revenue Service for the Computer Support Center, PO Box 135, purpose of offsetting a monetary penalty LIMITATIONS ON DISCLOSURE UNDER THE for violations committed under the Food Minneapolis, Minnesota 55440. FOLLOWING ROUTINE USES (1) THROUGH (10): Stamp Program against a tax refund that CATEGORIES OF INDIVIDUALS COVERED BY THE Information obtained from applicants may be due to the debtor. SYSTEM: under the authority of 7 U.S.C. 2018(c) (5) USDA/FCS may disclose The system consists of personal may be used or disclosed only as information from this system of records information from owners and officers of specified in 7 U.S.C. 2018(c). to other Federal and State agencies to stores and other entities currently Applicant social security numbers respond to specific requests from such participating in the Food Stamp and employer identification numbers Federal and State agencies for the Program, as well as those owners and may be disclosed only to other Federal purpose of administering the Food officers who have previously agencies authorized to have access to Stamp Act as well as other Federal and participated in the program. The social security numbers and employer State laws. individual paper records (i.e., identification numbers, and only when (6) USDA/FCS may disclose applications for authorization) located the Secretary of Agriculture determines information from this system of records in FCS field offices also contain that disclosure would assist in verifying to other Federal and State agencies to personal information from owners and and matching such information against verify information reported by officers who applied for authorization to information maintained by such other applicants and participating firms, and participate in the FSP but were denied agency. 42 U.S.C. 405(c)(2)(C)(iii); 26 to assist in the administration and authorization. U.S.C. 6109(f). enforcement of the Food Stamp Act as (1) USDA/FCS may disclose well as other Federal and State laws. CATEGORIES OF RECORDS IN THE SYSTEM: information from this system of records (7) USDA/FCS may disclose The applications for authorization to the Department of Justice (DOJ), a information from this system of records and reauthorization are in the STARS court or other tribunal, or another party to other Federal and State agencies for database and located in the files of FCS before such tribunal, when USDA, any the purpose of conducting computer field offices. The applications contain component thereof, or any employee of matching programs. the following personal information the USDA in his or her official capacity, (8) USDA/FCS may disclose regarding owners and officers: Name, any USDA employee in his or her information from this system of records home address, social security number, individual capacity where DOJ (or to private entities having contractual and date of birth. Financial data (i.e., USDA where it is authorized to do so) agreements with USDA for designing, food sales, gross sales, food stamp has agreed to represent the employee, or developing, and operating the system, redemption data) relative to each entity the United States where USDA and for verification and computer currently authorized or previously determines that the litigation is likely to matching purposes. authorized is in the STARS database. affect directly the operations of USDA (9) USDA/FCS may disclose an While this information is not covered by or any of its components, is a party to owner’s home address to a financial the Privacy Act when associated with the litigation or has an interest in such institution to verify information business information, it is subject to the litigation, and USDA determines that contained on a redemption certificate Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63817

(Form FCS–278B, formerly Form FNS– and password. The individual’s record is inaccurate, incomplete, 278B) submitted by a participating password must be changed at least every untimely, or irrelevant. retailer. Authorized entities use these 45 days or whenever the individual RECORD SOURCE CATEGORIES: certificates when depositing food feels it might have been compromised. coupons at financial institutions. On Access to personal information Information in this system comes occasion, particularly with small contained in the STARS database and to from the authorization and businesses, the owner’s business the paper record files is restricted to reauthorization applications of stores address may also be the owner’s home those individuals who have been and other entities which are currently address. authorized by FCS and who have a need participating in the Food Stamp (10) USDA/FCS will disclose to know such information in the Program, as well as information on file information from this system of records performance of their official duties in for those entities which have previously to the Internal Revenue Service, for the administering the Food Stamp Act and participated in the program. Personal purpose of reporting delinquent retailer other Federal and State laws. SSNs information in this system of records is and wholesaler monetary penalties of cannot be viewed on screen in STARS also obtained from the owners and $600 or more for violations committed by those individuals who are not officers of such entities as reported on under the Food Stamp Program. USDA/ specifically authorized to view them. the authorization and reauthorization FCS will report each delinquent debt to FCS personnel, project officers, and applications. the Internal Revenue Service on Form contract officers oversee compliance The STARS database also keeps a 1099–C (Cancellation of Debt). USDA/ with these requirements. When food stamp redemption history on such FCS will report these debts to the appropriate, FCS personnel will review entities. The database maintains the Internal Revenue Service under the the site facilities to ensure that records dollar amount of food stamp benefits authority of the Income Tax Regulations have been maintained in accordance accepted by each entity currently (26 CFR parts 1 and 602) under section with the terms of this notice. authorized or previously authorized. 6050P of the Internal Revenue Code. EXEMPTIONS CLAIMED FOR THE SYSTEM: RETENTION AND DISPOSAL: None. POLICIES AND PRACTICES FOR STORING, In STARS, the personal identifying RETRIEVING, ACCESSING, RETAINING, AND information is maintained indefinitely. [FR Doc. 96–30088 Filed 11–29–96; 8:45 am] DISPOSING OF RECORDS IN THE SYSTEM: The applications for authorization and BILLING CODE 3410±30±P STORAGE: reauthorization are kept in the FCS field File folders, magnetic tapes, and offices for three years and then computer disks. destroyed pursuant to the applicable Food and Consumer Service document retention and disposal RETRIEVABILITY: schedule. Agency Information Collection In STARS, the personal identifying Activities: Proposed Collection; information is retrievable by owner’s SYSTEM MANAGER AND ADDRESS: Comment Request: Supplemental name and by SSN. Thomas O’Connor, Director, Benefit Security Income (SSI)/Food Stamp Program (FSP) Joint Processing SAFEGUARDS: Redemption Division, Food and Consumer Service, United States Alternatives Demonstration Evaluation 1. Authorized Users: When designing, Department of Agriculture, Room 706, developing and/or operating a system of AGENCY: Food and Consumer Service, 3101 Park Center Drive, Alexandria, USDA. records on individuals, contractors are Virginia 22302. required to comply with all provisions ACTION: Notice. of the Privacy Act. Contractors are NOTIFICATION PROCEDURE: required to maintain and protect the SUMMARY: In accordance with the Any individual may request Paperwork Reduction Act of 1995, this personal data and cannot release or information regarding this system of share data without consulting with FCS. notice announces the Food and records from the System Manager. The Consumer Service’s (FCS) intent to Access to records maintained within request must be in writing. FCS is limited to those staff officials request Office of Management and responsible for the subject system of RECORD ACCESS PROCEDURES: Budget (OMB) review of the data collection for the Supplemental Security records. Otherwise, access is limited to An individual who wishes to request Income (SSI)/Food Stamp Program persons authorized and needing to use access to records in the system which (FSP) Joint Processing Alternatives the records, including project directors, pertains to him or her may submit a Demonstration Evaluation. contract officers, programmers, analysts, written request to the System Manager. statisticians, statistical clerks and key The envelope and the letter should be DATES: Comments on this notice must be punch operators on the staff of the marked, ‘‘Privacy Act Request’’. An received by January 31, 1997. contractors or in the FCS. individual may be required to reference ADDRESSES: Comments are invited on: 2. Physical Safeguards: Paper records the record by furnishing name, address, (a) Whether the proposed collection of are stored in locked safes, locked files, Social Security Number, and/or other information is necessary for the proper and locked offices when not in use. identifiers needed by FCS. performance of the functions of the Computer terminals used to process agency, including whether the personal identifiable data are located in CONTESTING RECORD PROCEDURES: information will have practical utility; secured areas and are accessible only to Individuals desiring to contest or (b) the accuracy of the agency’s estimate authorized users. Back up records amend information maintained in the of the burden of the proposed collection which are stored off-site shall be used system should direct their request to the of information, including the validity of and stored under the same secure System Manager. The request should the methodology and assumptions used; conditions. include, as appropriate, the reasons for (c) ways to enhance the quality, utility, 3. Procedural Safeguards: In order to contesting it, and the proposed and clarity of the information to be access STARS, each authorized amendment to the information with collected; and (d) ways to minimize the individual is given a personal access ID supporting information to show how the burden of the collection of information 63818 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices on those who are to respond, including Estimated Number of Respondents: Forks, McCrea, and South Carolina, the through the use of appropriate There will be 1,200 (400 for each only applicants, each applied for automated, electronic, mechanical, or subgroup) respondents for the client designation to provide official services other technological collection survey and 24 (8 program managers and in the entire area currently assigned to techniques or other forms of information 16 caseworkers) respondents for the them. technology. Comments may be sent to: staff survey. Since Decatur, Grand Forks, McCrea, Michael E. Fishman, Acting Director, Estimated Number of Responses per and South Carolina were the only Office of Analysis and Evaluation, Food Respondent: One. applicants for the respective areas, and Consumer Service, U.S. Department Estimated Total Annual Burden on GIPSA did not ask for comments on the of Agriculture, 3101 Park Center Drive, Respondents: 412 hours. applicants. Alexandria, VA 22302. Copies of this information collection GIPSA evaluated all available All responses to this notice will be can be obtained from Diana Perez, information regarding the designation summarized and included in the request Office of Analysis and Evaluation, Food criteria in Section 7(f)(l)(A) of the Act; for OMB approval. All comments will and Consumer Service, U.S. Department and according to Section 7(f)(l)(B), be a matter of public record. of Agriculture, 3101 Park Center Drive, determined that Decatur, Grand Forks, FOR FURTHER INFORMATION CONTACT: Alexandria, VA 22302. McCrea, and South Carolina are able to Michael E. Fishman, (703) 305–2017. Dated: November 12, 1996. provide official services in the geographic areas for which they applied. SUPPLEMENTARY INFORMATION: William E. Ludwig, Administrator, Food and Consumer Service. Effective January 1, 1997, and ending December 31, 1999, Decatur, Grand Title: SSI/FSP Joint Processing [FR Doc. 96–30553 Filed 11–29–96; 8:45 am] Alternatives Demonstration Evaluation. Forks, McCrea, and South Carolina are OMB Number: Not yet assigned. BILLING CODE 3410±30±U designated to provide official services in Expiration Date: N/A. the geographic areas specified in the Type of Request: New collection of Grain Inspection, Packers and June 28, 1996, Federal Register. information. Stockyards Administration Interested persons may obtain official Abstract: The SSI/FSP joint services by contacting Decatur at 217– processing alternative demonstration in Designations for the Decatur (IL), 429–2466, Grand Forks at 701–772– South Carolina seeks to improve the Grand Forks (ND), McCrea (IA) Areas 0151, McCrea at 319–242–2073, and delivery of food assistance to elderly and the State of South Carolina South Carolina at 803–554–1311. and disabled SSI recipients by using a AUTHORITY: Pub. L. 94–582, 90 Stat. 2867, single application and information AGENCY: Grain Inspection, Packers and as amended (7 U.S.C. 71 et seq.) source to facilitate the participation of Stockyards Administration (GIPSA). Dated: November 20, 1996 SSI clients in the Food Stamp Program. ACTION: Notice. The demonstration evaluation will Neil E. Porter provide information on how the SUMMARY: GIPSA announces the Director, Compliance Division demonstration changes from normal designation of Decatur Grain Inspection, [FR Doc. 96–30414 Filed 11–29–96; 8:45 am] program requirements affect FSP Inc. (Decatur), Grand Forks Grain BILLING CODE 3410±EN±F participation and benefits, FSP and SSI Inspection Department, Inc. (Grand administrative costs, timeliness and Forks), John R. McCrea Agency, Inc. accuracy of application processing, and (McCrea), and the South Carolina COMMITTEE FOR PURCHASE FROM client satisfaction. Department of Agriculture (South PEOPLE WHO ARE BLIND OR The evaluation’s data collection Carolina) to provide official services SEVERELY DISABLED consists of two telephone-interview under the United States Grain Standards surveys: (1) Interviews with randomly- Act, as amended (Act). Procurement List Addition selected respondents from three groups EFFECTIVE DATE: January 1, 1997. of SSI applicants (demonstration AGENCY: Committee for Purchase From ADDRESSES: USDA, GIPSA, Janet M. participants, demonstration-eligible People Who Are Blind or Severely Hart, Chief, Review Branch, Compliance clients who receive food stamps through Disabled. Division, STOP 3604, 1400 regular processing, and demonstration- Independence Avenue S.W., ACTION: Addition to the Procurement eligible clients who do not receive food Washington, DC 20250–3604. List. stamps) to assess client satisfaction; and (2) interviews with both FSP and SSI FOR FURTHER INFORMATION CONTACT: SUMMARY: This action adds to the program managers and caseworkers to Janet M. Hart, telephone 202–720–8525. Procurement List a service to be measure the effectiveness of the SUPPLEMENTARY INFORMATION: furnished by nonprofit agencies demonstration from their perspectives. This action has been reviewed and employing persons who are blind or Estimate of Burden: Public reporting determined not to be a rule or regulation have other severe disabilities. burden for this collection of information as defined in Executive Order 12866 EFFECTIVE DATE: January 2, 1997. is estimated to average 20 minutes for and Departmental Regulation 1512–1; ADDRESSES: Committee for Purchase the clients and 30 minutes for the staff. therefore, the Executive Order and Respondents: For the client survey, Departmental Regulation do not apply From People Who Are Blind or Severely the client or a designated proxy, if the to this action. Disabled, Crystal Square 3, Suite 403, selected respondent is incapable of In the June 28, 1996, Federal Register 1735 Jefferson Davis Highway, answering the questions directly due to (61 FR 33706), GIPSA asked persons Arlington, Virginia 22202–3461. disabilities which prevent a coherent interested in providing official services FOR FURTHER INFORMATION CONTACT: interview, will serve as the interview in the geographic areas assigned to Beverly Milkman (703) 603–7740. respondent. For the staff survey, Decatur, Grand Forks, McCrea, and SUPPLEMENTARY INFORMATION: On program managers and caseworkers South Carolina to submit an application September 20, 1996, the Committee for knowledgeable about the demonstration for designation. Applications were due Purchase From People Who Are Blind will serve as the interview respondent. by August 1, 1996. Decatur, Grand or Severely Disabled published notice Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63819

(61 F.R. 49435) of proposed addition to Accordingly, the following service is 3. The action will result in the Procurement List. A comment was hereby added to the Procurement List: authorizing small entities to furnish the received after the close of the comment Operation of SERVMART Stores, Fleet and services to the Government. period from a contractor at one of the Industrial Supply Center, Jacksonville, 4. There are no known regulatory installations involved in this addition to Florida alternatives which would accomplish the Procurement List. The contractor the objectives of the Javits-Wagner- This action does not affect current claimed that three of its employees O’Day Act (41 U.S.C. 46–48c) in contracts awarded prior to the effective would be displaced by the addition. connection with the services proposed date of this addition or options that may Because the SERVMART warehousing for addition to the Procurement List. be exercised under those contracts. operation is currently handled as part of Accordingly, the following services the larger warehousing operation for Beverly L. Milkman, are hereby added to the Procurement which the contractor is responsible, the Executive Director. List: contractor anticipates a financial impact [FR Doc. 96–30629 Filed 11–29–96; 8:45 am] Administrative Services if the nonprofit agency does not assume BILLING CODE 6353±01±P some of the burden of performing these GSA, Federal Supply Service Bureau, Service tasks and coordinating its activities with Acquisition Center, Arlington, Virginia Procurement List Additions Janitorial/Custodial, Kilauea Armed Forces the contractor. Recreation Center, Island of Hawaii The contracting activity has informed AGENCY: Committee for Purchase From Janitorial/Grounds Maintenance, U.S. Army the Committee that other work will be People Who Are Blind or Severely Reserve Center, Hilo, Hawaii found for the displaced employees. The Disabled. This action does not affect current SERVMART inventory will be totally ACTION: contracts awarded prior to the effective controlled by the nonprofit agency, so it Additions to the Procurement date of this addition or options that may will no longer be commingled with List. be exercised under those contracts. contracting activity property handled by SUMMARY: This action adds to the Beverly L. Milkman, the contractor. The nonprofit agency has Procurement List services to be Executive Director. indicated that coordination of its furnished by nonprofit agencies functions with the contractor is being employing persons who are blind or [FR Doc. 96–30630 Filed 11–29–96; 8:45 am] developed. The nonprofit agency will have other severe disabilities. BILLING CODE 6353-01-P perform warehousing operations related EFFECTIVE DATE: January 2, 1997. to the SERVMART with its own personnel and equipment. ADDRESS: Committee for Purchase From Procurement List; Proposed Additions People Who Are Blind or Severely Consequently, addition of the AGENCY: Committee for Purchase From SERVMART at this installation to the Disabled, Crystal Square 3, Suite 403, 1735 Jefferson Davis Highway, People Who Are Blind or Severely Procurement List will have no impact Disabled. on the contractor or its employees. Arlington, Virginia 22202-3461. ACTION: After consideration of the material FOR FURTHER INFORMATION CONTACT: Proposed Additions to presented to it concerning capability of Beverly Milkman (703) 603-7740. Procurement List. qualified nonprofit agencies to provide SUPPLEMENTARY INFORMATION: On SUMMARY: The Committee has received the service and impact of the addition September 27 and October 4, 1996, the proposals to add to the Procurement List on the current or most recent Committee for Purchase From People commodities and services to be contractors, the Committee has Who Are Blind or Severely Disabled furnished by nonprofit agencies determined that the service listed below published notices (61 F.R. 50805 and employing persons who are blind or are suitable for procurement by the 51881) of proposed additions to the have other severe disabilities. Federal Government under 41 U.S.C. Procurement List. COMMENTS MUST BE RECEIVED ON OR 46–48c and 41 CFR 51–2.4. After consideration of the material BEFORE: January 2, 1997. I certify that the following action will presented to it concerning capability of not have a significant impact on a qualified nonprofit agencies to provide ADDRESSES: Committee for Purchase substantial number of small entities. the services and impact of the additions From People Who Are Blind or Severely The major factors considered for this on the current or most recent Disabled, Crystal Square 3, Suite 403, certification were: contractors, the Committee has 1735 Jefferson Davis Highway, 1. The action will not result in any determined that the services listed Arlington, Virginia 22202–3461. additional reporting, recordkeeping or below are suitable for procurement by FOR FURTHER INFORMATION CONTACT: other compliance requirements for small the Federal Government under 41 U.S.C. Beverly Milkman (703) 603–7740. entities other than the small 46–48c and 41 CFR 51–2.4. SUPPLEMENTARY INFORMATION: This organizations that will furnish the I certify that the following action will notice is published pursuant to 41 service to the Government. not have a significant impact on a U.S.C. 47(a) (2) and 41 CFR 51–2.3. Its 2. The action will not have a severe substantial number of small entities. purpose is to provide interested persons economic impact on current contractors The major factors considered for this an opportunity to submit comments on for the service. certification were: the possible impact of the proposed 3. The action will result in 1. The action will not result in any actions. authorizing small entities to furnish the additional reporting, recordkeeping or If the Committee approves the service to the Government. other compliance requirements for small proposed additions, all entities of the 4. There are no known regulatory entities other than the small Federal Government (except as alternatives which would accomplish organizations that will furnish the otherwise indicated) will be required to the objectives of the Javits-Wagner- services to the Government. procure the commodities and services O’Day Act (41 U.S.C. 46 - 48c) in 2. The action will not have a severe listed below from nonprofit agencies connection with the service proposed economic impact on current contractors employing persons who are blind or for addition to the Procurement List. for the services. have other severe disabilities. 63820 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

I certify that the following action will Procurement List Addition Even if the Committee were to confine not have a significant impact on a its impact analysis to the local branch substantial number of small entities. AGENCY: Committee for Purchase From of the current contractor’s business, the The major factors considered for this People Who Are Blind or Severely figures the commenters have given, certification were: Disabled. which are not consistent with each 1. The action will not result in any ACTION: Addition to the Procurement other, do not show an impact which additional reporting, recordkeeping or List. reaches the level the Committee other compliance requirements for small normally considers to be severe adverse SUMMARY: This action adds to the entities other than the small impact. In addition, the Committee has Procurement List a service to be organizations that will furnish the reduced the scope of the Procurement furnished by nonprofit agencies commodities and services to the List addition from what was proposed employing persons who are blind or Government. by eliminating the base laundry service, have other severe disabilities. 2. The action does not appear to have so only the hospital laundry service will a severe economic impact on current EFFECTIVE DATE: January 2, 1997. be added, which should further contractors for the commodities and ADDRESSES: Committee for Purchase minimize impact on the contractor and services. From People Who Are Blind or Severely its employees. The contractor has only 3. The action will result in Disabled, Crystal Square 3, Suite 403, held short-term contracts for the authorizing small entities to furnish the 1735 Jefferson Davis Highway, hospital laundry service over the past commodities and services to the Arlington, Virginia 22202–3461. two years, and the values of the Government. FOR FURTHER INFORMATION CONTACT: contracts have been decreasing due to 4. There are no known regulatory Beverly Milkman (703) 603–7740. base downsizing. Consequently, the Committee does not believe the addition alternatives which would accomplish SUPPLEMENTARY INFORMATION: On April will have a severe adverse impact on the the objectives of the Javits-Wagner- 26, 1996, the Committee for Purchase contractor or its employees. The O’Day Act (41 U.S.C. 46–48c) in From People Who Are Blind or Severely commenters did not provide connection with the commodities and Disabled published notice (61 F.R. information to show an impact on the services proposed for addition to the 18571) of proposed addition to the local economy, so the Committee has Procurement List. Procurement List. Comments were not assessed that impact, in accordance Comments on this certification are received from the current contractor at with the regulatory requirement at 41 invited. Commenters should identify the both its local and parent corporation CFR 51–2.4(a)(4)(i)(C) to address impact statement(s) underlying the certification levels, its legal counsel, a trade on which they are providing additional matters other than financial impact on association, two Members of Congress, the current contractor and the information. and the mayors of the two communities The following commodities and contractor’s dependency on the contract in the area where the service will be over time only if substantive comments services have been proposed for performed. Concerns were expressed addition to Procurement List for are received on those other impact about both the impact the addition to matters. production by the nonprofit agencies the Procurement List would have on the listed: Commenters also claimed that the current contractor and its employees, legislative history of the Committee’s Commodities and the capability of the designated statute shows that Congress did not Office and Miscellaneous Supplies nonprofit agency to perform the laundry intend for the Committee’s program to (Requirements for Davis-Monthan Air service. have any impact on contractors, citing Force Base, Arizona) On the question of impact, several the legislative history of the 1938 act as NPA: Arizona Industries for the Blind, commenters claimed that the local interpreted by a 1970 court decision. Phoenix, Arizona branch of the current contractor would However, the statute was extensively Services lose considerable business and be forced revised in 1971, and a 1978 decision by to lay off workers. Objections were the same court stated that the legislative Grounds Maintenance for the following made to the Committee’s focus on the locations: history of the amended statute showed Rockville Post Office, 2 West Montgomery entire business enterprise of a Congress accepted the fact that every Avenue, Rockville, Maryland contractor, including the parent Procurement List addition will deprive Bureau of Alcohol, Tobacco and Firearms, corporation, as the entity on which private industry of a substantial amount 1401 Research Boulevard, Rockville, impact is assessed, and the Committee’s of potential business. Maryland failure to solicit information directly On the question of nonprofit agency Consumer Product Safety Commission, from the contractor’s local operation or capability, commenters noted that the 10901 Darnstown Road, Gaithersburg, to assess the impact of this addition to nonprofit agency is not in the laundry Maryland the Procurement List on the local business and does not have a laundry NPA: Melwood Horticultural Training economy. Center, Inc., Upper Marlboro, Maryland facility. The role of base contracting Grounds Maintenance, USARC, Greenwood, The Committee looks at an entire personnel in inducing the nonprofit South Carolina business enterprise because the agency to perform this service was NPA: Emerald Center Multi-County Board for contractor can use other assets to questioned. Commenters also pointed Disabilities and Special Needs, support a local branch or to compensate out that very stringent health and safety Greenwood, South Carolina for business losses there if it chooses. requirements apply to hospital laundry Janitorial/Custodial, U.S. Border Stations, The Committee is not required to services, particularly in connection with Lynden/Sumas, Washington provide direct notice of its proposed blood-borne pathogens, including a NPA: Cascade Christian Services, actions to affected parties, as opposed to requirement to have a backup laundry Bellingham, Washington notice in the Federal Register, and facility. They questioned the ability of Beverly L. Milkman, frequently bases its initial impact any small entity to perform the service Executive Director. assessment on current financial data and meet these requirements, given the [FR Doc. 96–30631 Filed 11–29–96; 8:45 am] from a reporting service, as occurred in performance history of small businesses BILLING CODE 6353±01±P this case. on this service, and particularly the Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63821 ability of an entity that will use The Committee’s procedures require PLACE: U.S. Commission on Civil Rights, mentally impaired persons to perform prices in the dollar range represented by 624 Ninth Street, N.W., Room 540, the service. the hospital laundry service to be set by Washington, DC 20425. The nonprofit agency is aware of the negotiation between the nonprofit STATUS: health and safety requirements the agency and the contracting activity. The commenters noted and is taking steps to price which has been set for this service Agenda assure compliance with them. Among has followed this fair market pricing I. Approval of Agenda these steps, the nonprofit agency has procedure and has been recognized by II. Approval of Minutes of November 15, retained a retired nurse who worked at the Committee as a fair market price. 1996 Meeting the hospital’s infectious control unit to After consideration of the material III. Announcements develop its quality assurance plan and presented to it concerning capability of IV. Staff Director’s Report related procedures and to provide qualified nonprofit agencies to provide V. Future Agenda Items expert advice. The nonprofit agency has the service and impact of the addition 11:00 a.m. Briefing on Civil Rights, acquired and installed the necessary Immigrant Rights, and Related Issues on the current or most recent Presented by Welfare Reform laundry equipment. The nonprofit contractors, the Committee has agency performed laundry service for a determined that the service listed below CONTACT PERSON FOR FURTHER local hospital as part of its training and are suitable for procurement by the INFORMATION: Barbara Brooks, Press and has made arrangements for that hospital Federal Government under 41 U.S.C. Communications (202) 376–8312. to provide backup laundry services as 46–48c and 41 CFR 51–2.4. Stephanie Y. Moore, needed. I certify that the following action will Acting Solicitor. The Committee’s program is currently not have a significant impact on a [FR Doc. 96–30775 Filed 11–27–96; 2:18 pm] performing 25 other laundry projects substantial number of small entities. BILLING CODE 6335±01±M successfully, including several hospital The major factors considered for this laundries, and the central nonprofit certification were: agency responsible for developing those 1. The action will not result in any projects has reviewed this nonprofit additional reporting, recordkeeping or DEPARTMENT OF COMMERCE agency’s plans and laundry facility and other compliance requirements for small concluded that it will be able to perform entities other than the small Foreign-Trade Zones Board this project successfully. In each of the organizations that will furnish the hospital laundries, people with mental service to the Government. [Order No. 856] disabilities are successfully performing 2. The action will not have a severe tasks which require contact with economic impact on current contractors Designation of New Grantee for infectious materials, as they will do in for the service. Foreign-Trade Zone 174, Tucson, performing this service. The contracting 3. The action will result in Arizona; Resolution and Order activity has visited and approved the authorizing small entities to furnish the Pursuant to its authority under the nonprofit agency’s laundry facility. service to the Government. Given this record, and the central Foreign-Trade Zones Act of June 18, 4. There are no known regulatory 1934, as amended (19 U.S.C. 81a–81u), nonprofit agency’s expertise in assessing alternatives which would accomplish nonprofit agency capability to perform and the Foreign-Trade Zones Board the objectives of the Javits-Wagner- Regulations (15 CFR Part 400), the hospital laundry services and assisting O’Day Act (41 U.S.C. 46–48c) in such agencies in performing these Foreign-Trade Zones Board (the Board) connection with the service proposed adopts the following Order: services, the Committee believes the for addition to the Procurement List. nonprofit agency is capable of Accordingly, the following service is After consideration of the request with performing this service successfully. supporting documents (Docket 59–96) from hereby added to the Procurement List: The Committee does not consider the the Arizona Technology Foreign-Trade Zone, involvement of base contracting Laundry Service, Hospital, Barksdale Air Inc., grantee of Foreign-Trade Zone 174, personnel in the development of this Force Base, Louisiana Tucson, Arizona, for reissuance of the grant of authority for said zone to the City of addition to the Procurement List to be This action does not affect current improper. Government personnel are Tucson, Arizona, a public corporation, which contracts awarded prior to the effective has accepted such reissuance subject to encouraged by a Committee regulation, date of this addition or options that may approval of the FTZ Board, the Board, 41 CFR 51–5.1, to assist the Committee be exercised under those contracts. finding that the requirements of the Foreign- and its central nonprofit agencies in Beverly L. Milkman, Trade Zones Act and the Board’s regulations identifying suitable services to be added Executive Director. are satisfied, and that the proposal is in the to the Procurement List, and are [FR Doc. 96–30632 Filed 11–29–96; 8:45 am] public interest, approves the request and required by the same regulation to recognizes the City of Tucson, Arizona as the provide the Committee and the central BILLING CODE 6353±01±P new grantee of Foreign-Trade Zone 174. nonprofit agencies with information The approval is subject to the FTZ Act and needed to determine if a service should the FTZ Board’s regulations, including be added. CIVIL RIGHTS COMMISSION Section 400.28. Commenters also indicated that the Signed at Washington, DC, this 22nd day nonprofit agency would provide the Sunshine Act Meeting of November 1996. service at a higher price than the Robert S. LaRussa, November 27, 1996. contractor. The Committee’s statute Acting Assistant Secretary of Commerce for requires services added to the AGENCY: U.S. Commission on Civil Import Administration, Alternate Chairman, Procurement List to be sold to the Rights. Foreign-Trade Zones Board. Government at a fair market price, not DATE AND TIME: Friday, December 6, [FR Doc. 96–30625 Filed 11–29–96; 8:45 am] necessarily the lowest possible price. 1996, 9:30 a.m. BILLING CODE 3510±DS±P 63822 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

[Order No. 855] Zones Board (the Board) is authorized to period of review is April 1, 1994 grant to qualified corporations the through March 31, 1995. Designation of New Grantee for privilege of establishing foreign-trade We gave interested parties an Foreign Trade Zone 126 and zones in or adjacent to U.S. Customs opportunity to comment on our Reissuance of Grant of Authority for ports of entry; preliminary results. We have not Subzone 89A (Porsche) Reno, Nevada; Whereas, the Board’s regulations (15 changed our preliminary results of Resolution and Order CFR Part 400) provide for the review. We have determined that sales Pursuant to its authority under the establishment of special-purpose have not been made below normal value subzones when existing zone facilities Foreign-Trade Zones Act of June 18, (NV). We have also determined to cannot serve the specific use involved; 1934, as amended (19 U.S.C. 81a–81u), revoke the order in part, with respect to Whereas, an application from Brown and the Foreign-Trade Zones Board the respondent, Rancho El Aguaje County, Wisconsin, grantee of Foreign- Regulations (15 CFR Part 400), the (Aguaje). Trade Zone 167, for authority to Foreign-Trade Zones Board (the Board) establish special-purpose subzone status EFFECTIVE DATE: December 2, 1996. adopts the following Order: at the small internal-combustion engine FOR FURTHER INFORMATION CONTACT: After consideration of requests (FTZ manufacturing plant of Robin Rebecca Trainor or Maureen Flannery, Docket 50–96, filed 6/5/96) from the Nevada Manufacturing U.S.A., Inc., in Hudson, Import Administration, International Development Authority, which is grantee of Wisconsin, was filed by the Board on Trade Administration, U.S. Department both Foreign-Trade Zone 89, Las Vegas, September 5, 1995, and notice inviting of Commerce, 14th Street and Nevada and Foreign-Trade Zone 126, Reno, Nevada for (1) reissuance of the grant of public comment was given in the Constitution Avenue, NW, Washington, authority for FTZ 126 to the Economic Federal Register (FTZ Docket 51–95, 60 DC 20230; telephone: (202) 482–4733. FR 48101, 9–18–95); and, Development Authority of Western Nevada SUPPLEMENTARY INFORMATION: (EDAWN), a Nevada non-profit corporation Whereas, the Board adopts the (which has accepted such reissuance subject findings and recommendations of the Background to approval of the FTZ Board) and for (2) examiner’s report, and finds that the On June 4, 1996, we published in the reissuance of the subzone grant of authority requirements of the FTZ Act and Federal Register (61 FR 28166) the for the Porsche Cars North America, Inc. Board’s regulations are satisfied, and preliminary results of administrative facility in Reno to EDAWN as grantee of FTZ that approval of the application is in the 126, the Board, finding that the requirements review of the antidumping duty order of the Foreign-Trade Zones Act, as amended, public interest; Now, Therefore, the Board hereby on certain fresh cut flowers from Mexico and the Board’s regulations are satisfied, and (52 FR 13491 (April 23, 1987)), wherein that the proposed actions are in the public authorizes the establishment of a subzone (Subzone 167A) at the Robin we gave notice of our intent to revoke interest, approves both requests, recognizing the order with respect to Aguaje’s sales the Economic Development Authority of Manufacturing U.S.A., Inc., plant in of the subject merchandise. We received Western Nevada as the new grantee of Hudson, Wisconsin, at the location Foreign-Trade Zone 126, Reno, Nevada, and described in the application, subject to a case brief from petitioners, The Floral of Subzone 89A, Reno, Nevada, which is the FTZ Act and the Board’s regulations, Trade Council, on July 5, 1996, and a hereby redesignated as Subzone 126A. including § 400.28. rebuttal brief from respondent on July The approval is subject to the FTZ Act and 12, 1996. the FTZ Board’s regulations, including Signed at Washington, DC, this 22nd day Section 400.28. of November 1996. Applicable Statutes and Regulations Signed at Washington, DC, this 22nd day Robert S. LaRussa, Unless otherwise stated, all citations of November 1996. Acting Assistant Secretary of Commerce for to the statute are references to the Robert S. LaRussa, Import Administration, Alternate Chairman, provisions effective January 1, 1995, the Foreign-Trade Zones Board. Acting Assistant Secretary of Commerce for effective date of the amendments made Import Administration, Alternate Chairman, [FR Doc. 96–30626 Filed 11–29–96; 8:45 am] to the Tariff Act of 1930 (the Act) by the Foreign-Trade Zones Board. BILLING CODE 3510±DS±P Uruguay Round Agreements Act [FR Doc. 96–30624 Filed 11–29–96; 8:45 am] (URAA). In addition, unless otherwise BILLING CODE 3510±DS±P indicated, all citations to the International Trade Administration Department’s regulations are to the [A±201±601] current regulations, as amended by the [Order No. 852] interim regulations published in the Fresh Cut Flowers From Mexico; Final Grant of Authority for Subzone Status Federal Register on May 11, 1995 (60 Results of Antidumping Duty FR 25130). Robin Manufacturing U.S.A., Inc. Administrative Review and Revocation (Small Internal-Combustion Engines); in Part of Antidumping Duty Order Scope of the Review Hudson, Wisconsin AGENCY: Import Administration, The products covered by this review Pursuant to its authority under the International Trade Administration, are certain fresh cut flowers, defined as Foreign-Trade Zones Act of June 18, Department of Commerce. standard carnations, standard 1934, as amended (19 U.S.C. 81a–81u), ACTION: Notice of final results of chrysanthemums, and pompon the Foreign-Trade Zones Board (the antidumping duty administrative review chrysanthemums. During the period of Board) adopts the following Order: and revocation in part of antidumping review (POR), such merchandise was Whereas, by an Act of Congress duty order. classifiable under Harmonized Tariff approved June 18, 1934, an Act ‘‘To Schedule of the United States (HTSUS) provide for the establishment * * * of SUMMARY: On June 4, 1996, the items 0603.10.7010 (pompon foreign-trade zones in ports of entry of Department of Commerce (the chrysanthemums), 0603.10.7020 the United States, to expedite and Department) published the preliminary (standard chrysanthemums), and encourage foreign commerce, and for results of its administrative review of 0603.10.7030 (standard carnations). The other purposes,’’ as amended (19 U.S.C. the antidumping duty order on certain HTSUS item numbers are provided for 81a–81u) (the Act), the Foreign-Trade fresh cut flowers from Mexico. The convenience and Customs purposes Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63823 only. The written description remains a final affirmative antidumping Petitioner also cites the Department’s dispositive as to the scope of the order. determination for Aguaje. Thus, the rejection of the questionnaire responses This review covers the period April 1, reinstatement agreement was not in Chrome-Plated Lug Nuts from 1994 through March 31, 1995. required at the time the request for Taiwan, 60 FR 44837 (August 29, 1995) Revocation of the Order in Part revocation was filed. (Lug Nuts), because the responses could Aguaje argues that the preliminary not be reconciled to the respondents’ On April 28, 1995, Aguaje submitted finding of a 1.54 percent dumping audited financial statements. Petitioner a request, in accordance with 19 C.F.R. margin for the 1993–94 review was asserts that Aguaje has provided the 353.25(b), to revoke the order with based on a misallocation of indirect Department with questionable data for respect to its sales of the subject selling expenses which was at odds three consecutive years, and suggests merchandise. In accordance with 19 with standard Departmental that the Department postpone C.F.R. 353.25(b)(1), this request was methodology; after correction for this revocation until Aguaje’s tax returns are accompanied by a certification from the methodological error, Aguaje argues, its available to confirm the reported data. firm that it had not sold the relevant dumping margin becomes zero. Aguaje Aguaje argues that the fact that it does class or kind of merchandise at less than points out that the Department found not maintain records with the same NV for a three-year period, including zero dumping margins for the 1992–93 level of sophistication as larger, multi- this review period, and would not do so review, and preliminarily found zero million dollar companies should not in the future. In our preliminary results dumping margins for this 1994–95 preclude it from revocation. Aguaje we incorrectly stated that Aguaje had review. Thus, when the most recent two asserts that it went far beyond the also submitted a written agreement to reviews are completed, Aguaje will have accounting requirements or practices of reinstatement in the order if we found three consecutive reviews in which its other small Mexican agricultural that Aguaje had sold the subject dumping margin was zero, and will businesses in order to demonstrate to merchandise at less than NV subsequent therefore have met the conditions for the Department that it is not dumping. to revocation. Section 353.25(b)(2) revocation under 353.25(a)(2)(i). Aguaje maintains that its financial requires that a firm that previously has statements and subsidiary ledgers Department’s Position: We disagree been found to have sold the subject provide detailed cost and revenue with petitioner. Since we published the merchandise at less than NV also submit information for all of its flower preliminary results in this a written agreement to reinstatement in operations, and that it has fully satisfied administrative review, we have the order if we conclude that it sold the the verification provisions of completed the 1993–94 review, in subject merchandise at less than NV 353.25(c)(2)(ii). subsequent to revocation. At the time of which we found a final margin of zero Department’s Position: We disagree Aguaje’s April 28, 1995 request for for Aguaje. We also found a final margin with petitioner. Although we routinely administrative review and revocation, of zero for Aguaje for the 1992–93 request that respondents provide this provision was not applicable to period. Although we found a margin of audited financial statements and/or Aguaje, as we had not yet completed an 39.95 percent in the 1991–92 review, income tax returns as independent administrative review in which we Aguaje has subsequently demonstrated sources with which to substantiate found dumping margins for Aguaje. The that it has sold the subject merchandise questionnaire responses, we have reinstatement agreement became at not less than NV for three consecutive concluded in this review that Aguaje applicable when we published the final years. As we state in the above section, cannot provide these documents results for the 1991–1992 administrative ‘‘Revocation of the Order in Part,’’ because they do not exist. Petitioner review on September 26, 1995 (60 FR Aguaje has provided all the cites language from the 1991–92 49569), in which we found dumping certifications required by 19 CFR preliminary and final results of review margins for Aguaje’s sales in that 353.25(b). Therefore, we are revoking of this order, in which we presented our period. Aguaje submitted a the order with respect to Aguaje. rationale for requiring such sources of reinstatement agreement for the record Comment 2: Petitioner argues that the independent substantiation, as we also of this review on November 15, 1996. Department should not revoke the did in Lug Nuts. However, this review antidumping order with respect to is distinct from those reviews. In the Analysis of the Comments Received Aguaje because Aguaje’s questionnaire 1991–92 review of this order, the Comment 1: Petitioner argues that response data could not be reconciled Department was unable to conclude Aguaje has not established its with an audited financial statement from the record that the requested entitlement to revocation of the and/or tax return. Petitioner cites the documents did not exist. In Lug Nuts, antidumping duty order pursuant to 19 Preliminary Results of Antidumping we found that the respondents’ CFR 353.25(a)(2) because: (1) Aguaje Duty Administrative Review; Certain submissions were ‘‘unreconcilable to failed to submit a reinstatement Fresh Cut Flowers from Mexico, 60 FR their audited financial statements and agreement when filing its request for 19209 (April 17, 1995), in which the thus unverifiable. * * *’’ Lug Nuts at revocation in accordance with 19 CFR Department stated that an unaudited 44838. In this case, respondent has 353.25(a)(2) & (b); and (2) Aguaje failed ‘‘in-house’’ system does not provide provided evidence that it is not required to maintain a three-year period of sales assurance that costs have been stated in by law to keep audited financial at not less than NV. Petitioner notes that accordance with generally accepted statements, and that it has not yet filed Aguaje received a calculated dumping accounting principles, or that all sales its income tax returns for the review margin of 1.54% in the preliminary and costs have been appropriately period. Therefore, we cannot deny results of the 1993–94 administrative captured, and the Final Results of revocation with respect to Aguaje review, and was assigned a final 39.95 Antidumping Duty Administrative because it failed to provide these percent dumping margin for the 1991– Review; Certain Fresh Cut Flowers from documents. Cf. Olympic Adhesives, Inc. 92 administrative review on September Mexico, 60 FR 49569 (September 26, v. United States, 899 F.2d 1565 (Fed. 26, 1995. 1995), in which the Department stated Cir. 1990). Aguaje contends that, as of the date of that, ‘‘without such independent Comment 3: The petitioner claims its request for revocation, April 28, substantiation, the entire questionnaire that the zero margin found by the 1995, the Department had never issued responses are unusable.’’ Department in its preliminary results 63824 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices was based in large part on facts included in G&A expenses as a cost of rate to Aguaje was substantially less otherwise available (FA) instead of doing business in Mexico, and the than that charged to unaffiliated verifiable costs or actual profit figures, Department should therefore impute the customers, Aguaje claims, the use of and is therefore an imprecise analysis of cost of Aguaje’s income tax liability for acquisition costs would overstate the Aguaje’s pricing practices in the U.S. the 1994–95 period. selling expenses allocable to Aguaje. market. Thus, petitioner argues, the Aguaje contends that the Department’s Position: We have Department should reconsider revoking Department’s long-held policy to revisited this issue and have added to the order with respect to Aguaje at this exclude income taxes from the cost of CV the amount of U.S. selling expenses time. production calculations does not lead to incurred by Aguaje, pursuant to section Aguaje contends that petitioner’s understated G&A rates, because the 773(e)(2)(B)(iii) of the Act. Section argument misinterprets the facts on the Department considers income tax to be 773(e)(2)(A) provides that CV include record. Aguaje asserts that total general a reduction in corporate profit rather the actual amount of selling expenses and administrative (G&A) expenses than an increase in production cost. incurred and realized by the specific were verified to original invoices, the Aguaje cites the Final Determination of exporter or producer being examined expense ledger and the general ledger, Less Than Fair Value; High Information ‘‘in connection with the production and and that the Department found Aguaje Content Flat Panel Display Glass from sale of a foreign like product, in the to be ‘‘generally cooperative’’ at Japan, 56 FR 32376 (July 16, 1991) (Flat ordinary course of trade, for verification. Aguaje cites the Panel Displays) and Final Results of consumption in the foreign country. Department’s Verification Report and Antidumping Administrative Review; .. .’’ We determine that this provision the Preliminary Results at 28167. Aguaje Color Picture Tubes from Japan, 55 FR does not apply here because Aguaje states that the only aspect of G&A which 37915 (September 14, 1990). only sells culls in the home market. could not be verified was the allocation Department’s Position: We disagree Because of (1) the significant physical methodology devised by Aguaje’s that G&A should be recalculated to differences between culls and export former counsel, which relied on a include imputed income tax. The quality sales and (2) the major recalculation of the cost of goods sold amount of this tax is determined based difference in commercial value for these for roses. In this instance, Aguaje on the level of corporate income. We do two products, culls are not part of the believes that the Department’s not consider taxes based on the foreign like product as defined by application of FA was a just and aggregate profit/loss of the company to section 771(16)(A)–(C) of the Act. reasonable exercise of the FA provision. be a cost of producing the product. See Therefore, we are unable to base the Aguaje argues that the verified data Flat Panel Displays at 72792. We have amount for selling expenses on home show that Aguaje’s U.S. prices are therefore not made the requested market sales of the like product. almost 4 to 7 times its constructed value adjustment. For purposes of determining an (CV) even though the Department Comment 5: Petitioner argues that, amount of selling expenses, we have applied a 52 percent profit rate to U.S. contrary to the statute, the general relied on the U.S. selling expenses cost of production. Further, any G&A expense percentage the Department reported by Aguaje as a reasonable allocation method, however adverse to used for CV in the preliminary results method for determining selling Aguaje, would still result in a finding of does not reflect selling expenses. expenses. See Section 773(e)(2)(B)(iii) zero dumping margins, as G&A costs Petitioner asserts that, since Aguaje does (allowing the Department to base selling would have to increase by multiples of not have a viable home or third country expenses on ‘‘any other reasonable hundreds before any positive dumping market, the Department should base CV method’’). As we have stated elsewhere, margin would result. selling expenses on Aguaje’s U.S. selling ‘‘[b]ecause we rejected the prices of Department’s Position: Because expenses, reported for the 1994–95 home market and third countries for Aguaje could not support its reported period. purposes of FMV, we find it necessary allocation of G&A to the subject Petitioner states that the Department to reject the general expenses and merchandise at verification, we should also confirm that selling profits associated with these sales.’’ preliminarily used the higher of the expenses have been allocated based on Certain Fresh Cut Flowers From amount Aguaje reported for this review, resale prices to unrelated parties, rather Colombia; Final Results of Antidumping or the amount it reported for the 1992– than transfer prices between Aguaje and Duty Administrative Reviews, 61 FR 93 review, which we verified. We have its U.S. subsidiary, Lizbeth’s Wholesale 42833, 42842 (Aug. 19, 1996). Here, we reconsidered our application of FA for Flowers, Inc. (Lizbeth). have determined that Aguaje’s home G&A for the final results, and have Aguaje argues that, if the Department market sales are not viable and, thus, recalculated Aguaje’s G&A using the were to include U.S. selling expenses in not an appropriate basis for NV. entire unallocated G&A figure, which the calculation of total CV as advocated Similarly, we determine that the selling we were able to verify. by the petitioner, it would have to expenses associated with those home We do not consider our use of FA in deduct them as a circumstance-of-sale market sales will not provide an this case to be grounds for denying adjustment. Thus, the net effect of the accurate measurement of dumping in revocation. With respect to G&A, we inclusion of U.S. indirect selling this case. We therefore resort to U.S. used a verified figure that is adverse to expenses would be to slightly increase selling expenses incurred by Aguaje as Aguaje. With respect to profit, we the amount of profit included in CV, the facts otherwise available. We note calculated a substantial profit rate based which would not come close to the 400 that these amounts are the only on recent data that is representative of percent increase in CV necessary to remaining alternative on the record for the Mexican flower industry. Even with create positive dumping margins. determining selling expenses. these changes to Aguaje’s reported data, Aguaje states that the use of Contrary to Aguaje’s assertion, there is Aguaje’s margin remains zero. acquisition costs to allocate Lizbeth’s no need for an adjustment for Comment 4: Petitioner argues that selling expenses is tantamount to using differences in circumstances of sale, as Aguaje understated its G&A expenses to resale prices to unrelated parties, the direct selling expenses included in the extent that it did not include the because Lizbeth’s acquisition costs are CV are the same as those included in the cost of income taxes owed. Petitioner equal to resale prices, less its U.S. selling price. Furthermore, there is claims that income taxes should be commission. As Lizbeth’s commission no provision in the statute for deducting Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63825 indirect selling expenses from CV in in predatory pricing. Finally, Aguaje deposit rates will be effective upon this situation. asserts that the 1994 peso devaluation publication of these final results of We agree that Aguaje’s selling has greatly increased profitability of administrative review for all shipments expenses should be allocated based on sales to the United States relative to of certain fresh cut flowers from Mexico resale prices to unrelated parties, and sales in Mexico, rather than placing entered, or withdrawn from warehouse, not Lizbeth’s acquisition cost (resale further pressure on firms to engage in for consumption on or after the price plus Lizbeth’s commission). We less than fair value pricing as petitioner publication date, as provided for by have made this recalculation for the contends. section 751(a)(2)(C) of the Act: (1) for final results. Department’s Position: We disagree previously reviewed or investigated Comment 6: The petitioner argues that that we should not revoke the order companies not listed above, the cash the Department should recalculate with respect to Aguaje at this time. As deposit rate will continue to be the constructed export price (CEP) profit to stated in our responses to the comments company-specific rate published for the attribute all of Aguaje’s expenses to received from petitioner and most recent period; (2) if the exporter is export quality U.S. sales as offset by respondent, Aguaje has proven that it is not a firm covered in this review, a prior home market cull revenue. entitled to revocation in accordance Aguaje states that the Department’s with section 353.25(a)(2) of the review, or the original less-than-fair- calculation of CEP profit was based regulations. Our decision to revoke is value (LTFV) investigation, but the entirely on U.S. sales, as Aguaje has based on the period April 1, 1992 manufacturer is, the cash deposit rate neither home market sales nor costs through March 31, 1995. Our shall be the rate established for the most associated with such sales. characterization of Aguaje’s recent period for the manufacturer of Department’s Position: We disagree questionnaire response for the 1991–92 the merchandise; and (3) if neither the that a recalculation of CEP profit is period is not relevant. exporter nor the manufacturer is a firm necessary. As demonstrated in Petitioner has presented no evidence covered in this or any previous review, Attachment 1 to our preliminary results that Colombian pricing will cause the cash deposit rate will be 18.20 calculation memo, the calculation of Aguaje to begin dumping the subject percent, the all others rate established in CEP profit was based solely on U.S. merchandise in the future. Furthermore, the LTFV investigation. These deposit sales revenue and U.S. costs, offset by as the 1994 devaluation of the peso did requirements shall remain in effect until home market cull revenue. As Aguaje not cause Aguaje to dump flowers, we publication of the final results of the had neither a viable home market nor have no basis to conclude that the most next administrative review. any third country markets during the recent devaluation will cause Aguaje to This notice serves as a final reminder POR, Aguaje’s expenses have been change its pricing practices to the to importers of their responsibility allocated to U.S. sales in their entirety. degree needed to create dumping See Memorandum to the File dated May margins, given the negative margins under 19 CFR 353.26 to file a certificate 23, 1996, on file in room B–099 of the found in this review, despite the use of regarding the reimbursement of Commerce Department. FA for certain elements of CV. antidumping duties prior to liquidation Comment 7: Petitioner states that the of the relevant entries during this Final Results of Review Department should reconsider whether review period. Failure to comply with revocation is appropriate if it cannot We determine that no dumping this requirement could result in the confirm that Aguaje is not likely to sell margin exists for Aguaje for the period Secretary’s presumption that merchandise at less than NV in the April 1, 1994 through March 31, 1995. reimbursement of antidumping duties future, as required by section We further determine that Aguaje has occurred and the subsequent assessment 353.25(a)(2) of the Department’s sold fresh cut flowers at not less than of double antidumping duties. regulations. Petitioner notes that several NV for three consecutive review This notice also serves as a reminder factors weigh heavily against the finding periods, including this review period. to parties subject to administrative that Aguaje is not likely to dump subject For the reasons stated in our response protective order (APO) of their merchandise in the future. These factors to petitioner’s comments, and because responsibility concerning the include Aguaje’s recent history of Aguaje has submitted the required disposition of proprietary information ‘‘evasive and misleading’’ responses in certifications, we are revoking the order disclosed under APO in accordance the 1991–92 review, the Department’s on certain fresh cut flowers from Mexico with 19 C.F.R. 353.34(d)(1). Timely inability to rely on independent sources with respect to Aguaje in accordance written notification of return/ for verification, the massive pricing with section 751(d) of the Act and 19 destruction of APO materials or pressure from Colombian exporters of CFR 353.25(a)(2). conversion to judicial protective order is the subject merchandise on the U.S. This revocation applies to all entries hereby requested. Failure to comply market, and the devaluation of the of the subject merchandise entered, or Mexican peso. withdrawn from warehouse, for with the regulations and the terms of an Aguaje contends that the history and consumption on or after April 1, 1995. APO is a sanctionable violation. facts found in the previous three annual The Department will order the This administrative review and notice reviews undercut petitioner’s claim that suspension of liquidation ended for all are in accordance with section 751(a)(1) Aguaje has failed to present any such entries and will instruct the of the Act (19 U.S.C. 1675(a)(1)) and evidence that it will not dump in the Customs Service to release any cash section 353.22 of the Department’s future. Aguaje states that it is in the deposit or bonds. The Department will regulations. business for the sole purpose of further instruct Customs to refund with Dated: November 25, 1996. exporting fresh cut flowers to the United interest any cash deposits on entries States, and that carnation production in made on or after April 1, 1995. Robert S. LaRussa, Mexico requires virtually no fixed costs. The Department shall determine, and Acting Assistant Secretary for Import Aguaje adds that its sales to the United the Customs Service shall assess, Administration. States relative to the total size of the antidumping duties on all appropriate [FR Doc. 96–30627 Filed 11–29–96; 8:45 am] market are so small that it cannot engage entries. Furthermore, the following BILLING CODE 3510±DS±P 63826 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

[A±485±602] Rulmenti Grei S.A. Ploiesti (Ploiesti); absence of government control, both in S.C. Rulmenti S.A. Slatina (Slatina); and law and in fact, with respect to exports. Tapered Roller Bearings and Parts S.C. URB Rulmenti Suceava S.A. Evidence supporting, though not Thereof, Finished or Unfinished, from (Suceava). We published the notice of requiring, a finding of de jure absence Romania; Preliminary Results of initiation of this antidumping duty of government control includes: (1) An Antidumping Duty Administrative administrative review on July 15, 1994 absence of restrictive stipulations Review (59 FR 36160). The Department is associated with an individual exporter’s AGENCY: Import Administration, conducting this administrative review business and export licenses; (2) any International Trade Administration, in accordance with section 751 of the legislative enactments decentralizing Department of Commerce. Tariff Act of 1930, as amended (the Act). control of companies; and (3) any other Unless otherwise indicated, all formal measures by the government ACTION: Notice of preliminary results of citations to the statute and to the antidumping duty administrative decentralizing control of companies. De Department’s regulations are in review. facto absence of government control reference to the provisions as they with respect to exports is based on four SUMMARY: In response to a request by the existed on December 31, 1994. criteria: (1) Whether the export prices petitioner, The Timken Company Scope of this Review are set by or subject to the approval of (Timken), the Department of Commerce a government authority; (2) whether (the Department) is conducting an Imports covered by this review are each exporter retains the proceeds from administrative review of the shipments of TRBs from Romania. its sales and makes independent antidumping duty order on tapered These products include flange, take-up decisions regarding the disposition of roller bearings and parts thereof, cartridge, and hanger units profits or financing of losses; (3) finished or unfinished, (TRBs) from incorporating tapered roller bearings, whether each exporter has autonomy in Romania. The review covers shipments and tapered roller housings (except making decisions regarding the of the subject merchandise to the United pillow blocks) incorporating tapered selection of management; and (4) States during the period June 1, 1993, rollers, with or without spindles, whether each exporter has the authority through May 31, 1994. The review whether or not for automotive use. This to negotiate and sign contracts. indicates the existence of dumping merchandise is currently classifiable TIE is the only company covered by under Harmonized Tariff Schedule margins during the period of review. this review with shipments of the We have preliminarily determined (HTS) item numbers 8482.20.00, subject merchandise to the United that sales have been made below the 8482.91.00, 8482.99.30, 8483.20.40, States during the period of review. foreign market value (FMV). If these 8483.30.40, and 8483.90.20. Although Therefore, TIE is the only firm for which preliminary results are adopted in our the HTS item numbers are provided for we have made a determination of final results of administrative review, convenience and Customs purposes, the whether it should receive a separate we will instruct U.S. Customs to assess written description of the scope of this rate. The evidence on the record antidumping duties equal to the order remains dispositive. demonstrates that TIE does not have This review covers eight companies difference between United States price autonomy in making decisions and the period June 1, 1993 through (U.S. price) and the FMV. regarding the selection of its Interested parties are invited to May 31, 1994. Of the eight companies management. Consequently, we have comment on these preliminary results. for which petitioner requested a review, found that there is de facto government only TIE made shipments of the subject EFFECTIVE DATE: December 2, 1996. control with respect to TIE’s exports merchandise to the United States during according to the criteria identified in FOR FURTHER INFORMATION CONTACT: the period of review. Alexandria and Sparklers and Silicon Carbide. For Karin Price or Maureen Flannery, Office Brasov produced the merchandise sold further discussion of the Department’s of Antidumping Compliance, Import by TIE to the United States, but have preliminary determination that TIE is Administration, International Trade stated that they did not ship TRBs not entitled to a separate rate, see Administration, U.S. Department of directly to the United States. Decision Memorandum to the Director, Commerce, 14th Street and Constitution Tehnoforestexport, Barlad, Ploiesti, Office of Antidumping Compliance, Avenue, N.W., Washington D.C. 20230; Slatina, and Suceava have responded dated June 19, 1995; ‘‘Assignment of a telephone: (202) 482–4733. that they did not produce or sell TRBs separate rate for Tehnoimportexport, SUPPLEMENTARY INFORMATION: subject to this review. S.A. in the 1993/1994 administrative review of tapered roller bearings and Background Separate Rates parts thereof, finished or unfinished, On June 19, 1987, the Department To establish whether a company is from Romania,’’ which is on file in the published in the Federal Register (52 sufficiently independent to be entitled Central Records Unit (room B099 of the FR 23320) the antidumping duty order to a separate rate, the Department Main Commerce Building). on TRBs from Romania. On June 7, analyzes each exporting entity under the 1994, the Department published in the test established in the Final Verification Federal Register (59 FR 29411) a notice Determination of Sales at Less Than Verification of the questionnaire of opportunity to request an Fair Value: Sparklers from the People’s responses of TIE was conducted administrative review of this Republic of China (56 FR 20588, May 6, between April 3, 1995, and April 8, antidumping duty order. On June 30, 1991) (Sparklers), as amplified by the 1995, at TIE’s facility in Bucharest, 1994, in accordance with 19 CFR Final Determination of Sales at Less Romania. The majority of TIE’s exports 353.22(a), the petitioner requested that Than Fair Value: Silicon Carbide from were of merchandise produced by we conduct an administrative review of the People’s Republic of China (59 FR Brasov, and we conducted an additional Tehnoimportexport, S.A. (TIE); 22585, May 2, 1994) (Silicon Carbide). verification at Brasov’s facility in Tehnoforestexport; S.C. Rulmenti S.A. Under this policy, exporters in non- Brasov, Romania. Verification of Alexandria (Alexandria); S.C. market-economy (NME) countries are Brasov’s questionnaire response, in Rulmentul S.A. Brasov (Brasov); S.C. entitled to separate, company-specific which it stated that it had no direct Rulmenti S.A. Barlad (Barlad); S.C. margins when they can demonstrate an shipments of TRBs to the United States Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63827 during the period of review, was 1994 administrative review of tapered version for profit reported for pipe and conducted at its facility in Brasov, roller bearings and parts thereof, tube from Turkey, because we had no Romania. finished or unfinished, from Romania,’’ useable information from Poland for this which are on file in the Central Records expense. United States Price Unit (room B099 of the Main Commerce • To value the packing materials, we Information on the record indicates Building). used the ECU per metric ton value of that TIE was the only Romanian For purposes of calculating FMV, we imports into Poland from the countries exporter of the subject merchandise to valued the Romanian factors of of the European Community as the United States during the period of production as follows, in accordance published in the EUROSTAT. Because review. For sales made by TIE, the with section 773(c)(1) of the Act: these statistics are exclusive of freight Department used purchase price, in • To value all direct materials used in charges incurred by Poland, we have accordance with section 772(b) of the the production of TRBs, we used the applied to each surrogate price a CIF/ Act, in calculating U.S. price. We European currency unit (ECU) per FOB conversion factor, which was calculated purchase price based on the metric ton value of imports into Poland obtained from the International price to unrelated purchasers. We made from the countries of the European Financial Statistics Yearbook, 1995, deductions, where appropriate, for Community for the period June 1993 published by the International Monetary foreign inland freight and ocean freight. through May 1994, obtained from the Fund. Some materials used to pack We used surrogate information from EUROSTAT, Monthly EC External Trade TRBs were imported into Romania from Turkey to value foreign inland freight (EUROSTAT). Because these statistics market-economy countries, and, in these for reasons explained in the ‘‘Foreign are exclusive of freight charges incurred instances, we used the import price to Market Value’’ section of this notice. by Poland, we have applied to each value the relevant portion of the packing surrogate price a CIF/FOB conversion Foreign Market Value material. We adjusted these values to factor, which was obtained from the include freight costs incurred between For merchandise exported from an International Financial Statistics the suppliers and the TRB factories. NME country, section 773(c)(1) of the Yearbook, 1995, published by the • To value foreign inland freight, we Act provides that the Department shall International Monetary Fund. Some used information from a publicly determine FMV using a factors of materials used to produce TRBs were available summarized version for production methodology if available imported into Romania from market- foreign inland freight reported for pipe information does not permit the economy countries, and, in these and tube from Turkey, because we had calculation of FMV using home market instances, we used the import price to no useable information from Poland for prices, third country prices, or value the relevant portion of the this expense. constructed value (CV) under section material input. We made adjustments to Currency Conversion 773(a) of the Act. include freight costs incurred between In every case conducted by the the suppliers and the TRB factories. We We made currency conversions in Department involving Romania, also made an adjustment for scrap steel accordance with 19 CFR 353.60(a). Romania has been treated as an NME which was sold. Currency conversions were made at the country. None of the parties to this • For direct labor, we used the rates certified by the Federal Reserve proceeding has contested such average monthly wages for the Bank, or, where certified Federal treatment in this review. Accordingly, manufacture of machinery except Reserve Bank rates were not available, we calculated FMV in accordance with electrical reported in the September average monthly exchange rates section 773(c) of the Act and section 1994 issue of the Statistical Bulletin published by the International Monetary 353.52 of the Department’s regulations published by the Central Statistical Fund in International Financial based on information submitted by TIE Office in Warsaw. To determine the Statistics. and verified by the Department. We number of hours worked each week, we Preliminary Results of the Review determined that Poland and Turkey are used information published by the each at a level of economic development Economic Intelligence Unit in Investing, As a result of our review, we comparable to Romania in terms of per Licensing & Trading Conditions Abroad, preliminarily determine that the capita gross national product (GNP), the Poland, April 1994. following margin exists: growth rate in per capita GNP, and the • For factory overhead, we used national distribution of labor. We have Margin information from a publicly available Manufacturer/ Time period (per- found that both Poland and Turkey are summarized version for factory exporter cent) significant producers of bearings, but overhead reported for the 1993/1994 that Poland has a larger bearings administrative review of the Romania Rate 6/1/93±5/31/94 0.00 industry than Turkey. Therefore, we antidumping duty order on welded have selected Poland as the primary carbon steel pipe and tube from Turkey Parties to the proceeding may request surrogate country. Where we have been (pipe and tube from Turkey), because disclosure within 5 days of the date of unable to locate publicly available we had no useable information from publication of this notice. Any published information to establish Poland for this expense. Factory interested party may request a hearing surrogate values from Poland, we have overhead was reported as a percentage within 10 days of publication. Any used Turkey as a secondary surrogate of total cost of manufacture. hearing, if requested, will be held 44 country. For further discussion of the • For selling, general, and days after the publication of this notice, Department’s selection of these administrative expenses, we used the or the first workday thereafter. surrogate countries, see Memorandum statutory minimum percentages found Interested parties may submit case briefs to the Acting Division Director, dated in section 773(e)(1)(B) pursuant to our within 30 days of the date of publication March 24, 1995; ‘‘Surrogate Country authority in section 773(e)(1), because of this notice. Rebuttal briefs, which Selection for Tapered Roller Bearings we had no useable surrogate country must be limited to issues raised in the from Romania,’’ and Memorandum to information for these expenses. case briefs, may be filed not later than the File, dated May 4, 1995, ‘‘Selection • For profit, we used information 37 days after the date of publication. See of the surrogate country in the 1993/ from a publicly available summarized section 353.38(d) of the Department’s 63828 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices regulations. The Department will The Committee shall function solely 526–2850, FAX: (62–21) 526–2855, publish a notice of final results of this as an advisory body in compliance with INTERNET, [email protected] administrative review, which will the provisions of the Federal Advisory Amy Chang, Director, U.S. Commercial include the results of its analysis of Committee Act. Center—Shanghai, Portman Shanghai issues raised in any such comments. Persons interested in becoming Centre, Suite 631, 1369 Nanjing West The Department shall determine, and members are invited to submit a letter Road, Shanghai, 200040 China, TEL: the Customs Service shall assess, to Troy H. Cribb, Deputy Assistant (86–21) 6279–7640, FAX: (86–21) antidumping duties on all appropriate Secretary for Textiles, Apparel and 6279–7649, INTERNET: entries. Individual differences between Consumer Goods Industries, U.S. [email protected]. U.S. price and FMV may vary from the Department of Commerce, Washington, SUPPLEMENTARY INFORMATION: percentages stated above. The DC 20230 telephone: (202) 482–3737. Commerical Center Concept: U.S. Department will issue appraisement Letters must include the applicant’s Commercial Centers are enhanced U.S. instructions directly to the Customs social security number, date of birth, government export promotion programs Service. place of birth and home address. This that provide, under one roof, expert Notification of Interested Parties information is required to process a business counseling by frontline records check to determine suitability This notice serves as a preliminary Commercial Officers, a winning for membership. collection of core trade promotion reminder to importers of their Dated: November 26, 1996. responsibility under section 353.26 of programs, and an impressive array of Troy H. Cribb, the Department’s regulations to file a world class, in-house business facilities. certificate regarding the reimbursement Deputy Assistant Secretary for Textiles, Commercial Centers are the only U.S. Apparel and Consumer Goods Industries. of antidumping duties prior to government operations that are designed liquidation of the relevant entries [FR Doc. 96–30683 Filed 11–29–96; 8:45 am] physically and legally to share space on during this review period. Failure to BILLING CODE 3510±DR±F a long-term basis with nonprofit trade comply with this requirement could promotion entities who seek to build a result in the Secretary’s presumption presence in one or more of these Big Joint Projects With the U.S. Emerging Markets. US&FCS has that reimbursement of antidumping Commercial Centers in Sao Paulo, duties occurred and the subsequent authority to enter into joint projects on Brazil, Jakarta, Indonesia, and matters of mutual interest with public assessment of double antidumping Shanghai, People's Republic of China duties. organizations and establish U.S. Commercial Centers overseas under 15 This administrative review and notice AGENCY: U.S. and Foreign Commercial are in accordance with section 751(a)(1) Service, International Trade U.S.C. §§ 1525 and 4723a. Through joint of the Act (19 U.S.C. 1675(a)(1)) and Administration, Department of projects, nonprofit trade promotion section 353.22 of the Department’s Commerce. organizations can expand both the trade regulations. promotion resources available to U.S. ACTION: Notice of opportunity. companies as well as the number of U.S. Dated: November 20, 1996. companies served at the Commercial Robert S. LaRussa, SUMMARY: The Department of Commerce offers a unique opportunity for Center. Acting Assistant Secretary for Import Eligible Participants: The U.S. and Administration. nonprofit trade promotion organizations to undertake a joint project with the Foreign Commercial Service seeks other [FR Doc. 96–30623 Filed 11–29–96; 8:45 am] U.S. and Foreign Commercial Service federal trade promotion agencies, state- BILLING CODE 3510±DS±P (US&FCS), the export promotion arm of local economic development agencies, the U.S. Government, in three of the nonprofit industry associations, and world’s most promising Big Emerging other nonprofit trade promotion entities Exporters' Textile Advisory to share space in the Commercial Committee; Solicitation for Members Markets: Brazil, Indonesia and the People’s Republic of China. This joint Centers. The Exporters’ Textile Advisory project features space sharing with the Features of Commercial Centers: Committee was re-established effective US&FCS in the U.S. Commercial Centers Commercial Centers are strategically October 21, 1996. (‘‘Commercial Centers’’) in Sao Paulo, placed in the heart of the business The Committee provides advice and Jakarta, and Shanghai to enhance districts of Sao Paulo, Jakarta and guidance to Department officials on the opportunities for joint project Shanghai to serve clients, U.S. identification and surmounting of participants to work toward shared companies, and their business partners barriers to the expansion of textile market development goals and assist in-county. While striving to adapt to exports, and on methods of encouraging U.S. companies in-country. local business conditions and opportunities, each Commercial Center textile firms to participate in export FOR FURTHER INFORMATION CONTACT: expansion. provides a consistent level of service The Committee shall consist of John Steuber, Director, U.S. Commercial and access to core features. In approximately 35 members appointed Center—Sao Paulo, Rua Estados accordance with the authorizing by the Secretary of Commerce to ensure Unidos, 1812, Sao Paulo, SP. 01427– legislation, Title IV, Jobs Through a balanced representation of textile and 002, Brazil Exports Act of 1992, U.S. Commercial apparel products. Representatives of or Centers offer the following basic small, medium and large firms with AMCONGEN—Sao Paulo, Unit 3502, features: broad geographical distribution in APO AA 34030, TEL: (55–11) 853– • All the core US&FCS export exporting shall be included on the 2811, FAX: (55–11) 3061–0718, promotion programs and services, Committee. Members shall represent the INTERNET: [email protected] including expert business counseling, views of their companies, trade Jon Kuehner, Director, U.S. Commercial advocacy, business-facilitation services; associations and other entities on Center—Jakarta, Wisma Metropolitan • Long-term space-sharing for matters that affect their business interest II, Third Floor, JL. Jendral Sudirman, nonprofit trade promotion partners, in exporting. Jakarta 12920, Indonesia, TEL: (62–21) such as other federal trade promotion Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63829 agencies, state-local export development Joint Project Opportunity in Jakarta, Center in Shanghai, the financial hub of offices, and nonprofit industry Indonesia all of China, positions U.S. companies associations; The late Commerce Secretary Ronald to compete in the entire Chinese • Fully equipped offices and H. Brown officially opened the U.S. Economic Area, which comprise the executive support services (in Sao Paulo Commercial Center in Jakarta during the vast markets of China, Taiwan and Hong and Jakarta) for short-term use by U.S. ministerial meetings of the Asia-Pacific Kong, which reverts to the Mainland in companies and trade promotion Economic Cooperation forum in 1997. The Shanghai Commercial Center organizations; November 1994. Since its inception, the includes six private offices for long-term • Multipurpose rooms for Commercial Center has been a vehicle space sharing. The US&FCS and several conferences, meetings, technical for implementing regional events, prospective participants are in the final seminars, product launches, receptions, particularly those tied to the Alliance stages of concluding the joint project and other business functions; for Mutual Growth, a Clinton agreements for the majority of these • Exhibit or display areas, depending Administration initiative to promote offices. Each fully furnished office is on the market; trade with the member countries of the 130 square feet and the annual • Business Information Center, Association of Southeast Asian Nations. contribution to participate in this joint offering an array of information The Jakarta Commercial Center has project is $40,000. Please contact the products, including up-to-the minute helped link trade policy with trade post listed under the ‘‘For More commercial intelligence on trade leads promotion by organizing policy Information’’ or call the Trade and opportunities, extensive market roundtables with technical seminars Information Center for a program research on leading sectors, on-line/CD– where participating small- and medium- brochure at 1–800–USA–TRAD. ROM-based company and product size U.S. companies can demonstrate technical expertise to host country Short-Term Use of Commercial Centers locators, and from the Sao Paulo Center, by U.S. Companies or Organizations accessibility from remote locations in government policymakers and business the U.S. and Brazil; decisionmakers. Already positioned as The joint project opportunity, which • long-term participants are the California features long-term space for periods of Prime business location that Trade and Commerce Agency, and the enhances access to prospective business one year, or longer, is designed to assist Foreign Agricultural Service, which nonprofit trade promotion organizations partners and clients. plans to establish its Agricultural Trade achieve long-term market development Joint Project Opportunity in Sao Paulo, Office within the Commercial Center goals. The Commercial Centers in Sao Brazil this year. Paulo and Jakarta also offer short-term Located in the Jakarta World Trade use of business facilities to U.S. In July 1994, the first U.S. Center Complex, the Commercial Center companies and business organizations Commercial Center was established in will have one newly renovated, fully on a user fee basis. For the latter group, Sao Paulo. Since then, agencies equipped office in March 1997. The the Commercial Center provides an including the U.S. Information Service, annual contribution of $12,000 for ideal venue to achieve specific, short- the Foreign Agricultural Service, the participating in this joint project covers term business objectives: hold meetings Export-Import Bank have helped put the the use of a private office and common with prospective clients, potential Commercial Center at the ‘‘center’’ of areas—reception area and Business agents/distributors, local staff, conduct the bilateral commercial dialogue by Information Center (Commercial market research, stage technical holding key events such as government- Library). Use of multi-purpose rooms seminars or product launches, or find a to-government meetings, technical and audio visual equipment are local office. The length of time depends seminars, and business receptions there. available on a nominal user-fee basis. on the specific business objectives and U.S. and Brazilian policymakers used For short-term use of business proposals will be considered on a case- the Sao Paulo Commercial Center as the facilities, please contact the post listed by-case basis. The broad goal of primary vehicle for establishing the under the ‘‘For More Information’’ or Commercial Centers is to offer clients a U.S.-Brazil Business Development call the Trade Information Center for a unique package that combines US&FCS Council (BDC), the bilateral forum for program brochure at 1–800–USA– counseling and trade programs and the government-private sector commercial TRAD. convenience of using in-house business dialogue. facilities—fully equipped offices, In February 1997, the San Paulo Joint Project Opportunity in Shanghai, meeting and conference rooms, exhibit/ Commercial Center will have four China display areas—at one site. The facilities private offices for long-term The U.S. Commercial Center in are made available to complement the participants. Each fully furnished office Shanghai, established in July 1996, is core US&FCS trade promotion programs is twelve square meters and the annual the first export-promotion facility of its and services which are designed to help contribution to participate in this joint kind in the People’s Republic of China. U.S. companies export. project is $15,000, which covers use of For the first time, U.S. state economic Submitting Proposal(s): Send your a private office, common areas— development offices, operating under written proposals to use the Commercial reception area and business information the aegis of the Commercial Center, can Centers—on either a long-term or short- center (commercial library). Use of the open a representative office in China. term basis—to the Commercial Center multipurpose rooms and audio visual Shanghai is located at the mouth of Director(s) for review. The Directors are equipment are available on a nominal the Yangtze River, the commercial in the best position to suggest best uses user-fee basis. For short-term use of lifeline of Southeast China, reinforcing of the Commercial Center and the business facilities, please contact the this pivotal city’s role as the commercial viability of the proposals. Long-term Commercial Center listed under the nexus that fits strategically between participants are asked to fax or mail a ‘‘For More Information’’ section or call Beijing, the administrative capital, and synopsis (three pages maximum) of the Trade Information Center for a the booming special economic zones in market development plan(s) to the program brochure at 1–800–USA– the southern and eastern coastal Director(s) of the Commercial Center TRAD. provinces. Placing the Commercial listed above for review. Synopsis of 63830 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices market development plan must address Building, Lecture Room E on the 10th SUMMARY: The Mid-Atlantic Fishery four items: 1) plans to assist U.S. and 11th; Lecture Room D on the 12th. Management Council (Council) and its companies, particularly small- and ADDRESSES: The meeting will take place Demersal Species Committee, together medium-size enterprises, do business in at the National Institute of Standards with the Industry Advisory the host country; 2) the role the and Technology, Gaithersburg, Subcommittee and Atlantic States Commercial Center can play in the plan; Maryland 20899–0001. Marine Fisheries Commission’s 3) measurable goals, 4) a statement AGENDA: (ASMFC) Summer Flounder, Scup, and indicating a willingness to share —Welcome and Overview Black Sea Bass Board, and its performance results, such as success Comprehensive Management Committee stories; and 5) a timetable of milestones. —Issues Update —Public Key Infrastructure and Related will hold public meetings. Companies and organizations who Issues seek to use the Commercial Centers on DATES: The meetings will be held on —Privacy/Data Protection/Electronic a short-term basis are asked to send or December 17 to December 19, 1996. On Benefits Transfer fax a letter to the Director(s) of the December 17, the Council will meet as —Pending Business Commercial Center outlining how the a Demersal Species Council Committee —Public Participation Commercial Center can help them fulfill of the Whole, together with the Industry —Agenda Development for March their business goals. Advisory Subcommittee and the Meeting ASMFC Summer Flounder, Scup, and All proposals will be considered on a —Wrap-Up first-come, first-served basis. For the Black Sea Bass Board, beginning at 8:00 convenience of clients, Commercial PUBLIC PARTICIPATION: The Board agenda a.m. On December 18, the Council will Center brochures will be made available will include a period of time, not to meet from 8:00 a.m. until 4:00 p.m., at exceed thirty minutes, for oral through the Trade Information Center in which time the Comprehensive comments and questions from the January. Management Committee will meet until public. Each speaker will be limited to For general inquires or requests for 5:00 p.m. On December 19, the Council export counseling on exploring business five minutes. Members of the public who area interested in speaking area will meet from 8:00 a.m. until opportunities in Brazil, Indonesia and approximately noon. the People’s Republic of China and asked to contact the Board Secretariat at neighboring markets, call 1–800–USA– the telephone number indicated below. ADDRESSES: These meetings will be held TRAD and ask the Trade Information In addition, written statements are at the Holiday Inn SunSpree Resort, Center for the nearest US&FCS domestic invited and may be submitted to the 39th Street and Atlantic Avenue, field office, referred to as the U.S. Board at any time. Written statements Virginia Beach, VA 23451; telephone: Export Assistance Center, for individual should be directed to the Computer 804–428–1711. counseling. Systems Laboratory, Building 820, Room 426, National Institute of Council address: Mid-Atlantic Fishery Dolores F. Harrod, Standards and Technology, Management Council, 300 S. New Deputy Assistant Secretary for International Gaithersburg, MD 20899–0001. It would Street, Dover, DE 19901; telephone: Operations. be appreciated if fifteen copies of 302–674–2331. [FR Doc. 96–30226 Filed 11–29–96; 8:45 am] written material were submitted for FOR FURTHER INFORMATION CONTACT: BILLING CODE 3510±FP±M distribution to the Board by December 9, David R. Keifer, Executive Director; 1996. Approximately 20 seats will be telephone: 302–674–2331. available for the pubic and media. National Institute of Standards and SUPPLEMENTARY INFORMATION: The Technology FOR FURTHER INFORMATION CONTACT: Mr. Edward Roback, Board Secretariat, purpose of these meetings is to prepare Computer System Security and Privacy Computer Systems Laboratory, National recommendations for summer flounder Advisory Board; Meeting Institute of Standards and Technology, and scup recreational measures for Building 820, Room 426, Gaithersburg, 1997, discuss Amendment 10 to the AGENCY: National Institute of Standards MD 20899–0001, telephone: (301) 975– Summer Flounder, Scup, and Black Sea and Technology. 3696. Bass Fishery Management Plan (FMP) ACTION: Notice of meeting. Dated: November 20, 1996. and possibly adopt for public hearings, Samuel Kramer, have presentation on the Magnuson- SUMMARY: Pursuant to the Federal Stevens Act (which will include Associate Director. Advisory Committee Act, 5 U.S.C. App., discussion on essential fish habitat), [FR Doc. 96–30536 Filed 11–29–96; 8:45 am] notice is hereby given that the Computer scoping of the Dogfish FMP with System Security and Privacy Advisory BILLING CODE 3510±01±M possible adoption of the document for Board will meet on Tuesday, December staff to schedule scoping meetings, 10, Wednesday, December 11 and review the role of the Comprehensive Thursday, December 12, 1996 from 9:00 National Oceanic and Atmospheric Administration Management Committee, and other a.m. to 5:00 p.m. The Advisory Board fishery management matters. was established by the Computer [I.D. 112196C] Security Act of 1987 (P.L. 100–235) to Special Accommodations advise the Secretary of Commerce and Mid-Atlantic Fishery Management the Director of NIST on security and Council; Meetings These meetings are physically privacy issues pertaining to federal accessible to people with disabilities. AGENCY: National Marine Fisheries computer systems. All sessions will be Requests for sign language Service (NMFS), National Oceanic and open to the public. interpretation or other auxiliary aids Atmospheric Administration (NOAA), should be directed to Joanna Davis at DATES: The meeting will be held on Commerce. December 10, 11 and 12, 1996 from 9:00 the Council at least 5 days prior to the ACTION: Notice of public meetings. a.m. to 5:00 p.m. in the Administration meeting dates. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63831

Dated: November 22, 1996. the Council may improve regulations. American Free Trade Agreement Gary C. Matlock, The Committee and Advisory Panel will Implementation Act—Balance of Director, Office of Sustainable Fisheries, also review the new NOAA General Payments Program Certificate. A request National Marine Fisheries Service. Counsel penalty schedule; discuss for public comments was published at [FR Doc. 96–30571 Filed 11–29–96; 8:45 am] developing a regulatory information 61 FR 50003, on September 24, 1996. No BILLING CODE 3510±22±F exchange system between NMFS, the comments were received. States, and the Coast Guard; hear a DATES: Comment Due Date: January 2, report on enforcement activities 1997. [I.D. 112196B] associated with the Charleston NMFS ADDRESSES: Comments regarding this Laboratory; review proposed South Atlantic Fishery Management burden estimate or any other aspect of management measures for Snapper Council; Public Meetings. this collection of information, including Grouper Amendment 8; hear a report on suggestions for reducing this burden, AGENCY: National Marine Fisheries the Atlantic Coast Law Enforcement should be submitted to: FAR Desk Service (NMFS), National Oceanic and Workshop; discuss how the sale of bag Officer, OMB, Room 10102, NEOB, Atmospheric Administration (NOAA), limit caught fish impacts law Washington, DC 20503, and a copy to Commerce. enforcement; and discuss the the General Services Administration, ACTION: Notice of public meetings. development of an enforcement strategy FAR Secretariat (MVRS), 18th & F for the Oculina Habitat Area of Streets, NW, Room 4037, Washington, SUMMARY: The South Atlantic Fishery Particular Concern closed area. DC 20405. Please cite OMB Control No. Management Council (Council) will Special Accommodations 9000–0130, Buy American Act—North hold a meeting of its Law Enforcement American Free Trade Agreement Committee and Law Enforcement These meetings are physically Implementation Act—Balance of Advisory Panel. accessible to people with disabilities. Payments Program Certificate, in all The Council welcomes written public Requests for sign language correspondence. interpretation or other auxiliary aids comment on any of the agenda items. FOR FURTHER INFORMATION CONTACT: Paul should be directed to the Council office See ADDRESSES for the Council address Linfield, Federal Acquisition Policy (see ADDRESSES) by December 2, 1996. to send in comments. Division, GSA (202) 501–1757. DATES: The meetings will be held from Dated: November 22, 1996. SUPPLEMENTARY INFORMATION: Under the December 9-10, 1996. See Gary C. Matlock, North American Free Trade Agreement SUPPLEMENTARY INFORMATION for specific Director, Office of Sustainable Fisheries, (NAFTA) Implementation Act, unless dates and times. National Marine Fisheries Service. specifically exempted by statute or ADDRESSES: The meetings will be held at [FR Doc. 96–30572 Filed 11–29–96; 8:45 am] regulation, agencies are required to the Town & Country Inn, 2008 BILLING CODE 3510±22±F evaluate offers over a certain dollar Savannah Highway, Charleston, SC limitation to supply an eligible product 29407; telephone: (803) 571-1000. without regard to the restrictions of the Council address: South Atlantic DEPARTMENT OF DEFENSE Buy American Act or the Balance of Fishery Management Council, One Payments program. Offerors identify Southpark Circle, Suite 306; Charleston, General Services Administration excluded end products and NAFTA end SC 29407-4699. products on this certificate. FOR FURTHER INFORMATION CONTACT: National Aeronautics and Space The contracting officer uses the Susan Buchanan, Public Information Administration information to identify the offered items Officer; telephone: (803) 571-4366; fax: [OMB Control No. 9000±0130] which are domestic and NAFTA (803) 769-4520; email: country end products so as to give these [email protected] Submission for OMB Review; products a preference during the SUPPLEMENTARY INFORMATION: Comment Request Entitled Buy evaluation of offers. Items having American ActÐNorth American Free components of unknown origin are Meeting Dates Trade Agreement Implementation considered to have been mined, November 9, 1996, 1:30 p.m. - 5:00 p.m. ActÐBalance of Payments Program produced, or manufactured outside the Certificate United States. The Law Enforcement Committee will meet jointly with the Law Enforcement AGENCIES: Department of Defense (DOD), Annual Reporting Burden Advisory Panel to discuss the status of General Services Administration (GSA), Public reporting burden for this NMFS/States cooperative agreements, and National Aeronautics and Space collection of information is estimated to particularly state participation and Administration (NASA). average .167 hours per response, reimbursement, and funding. They will ACTION: Notice of request for an including the time for reviewing also discuss the Florida drift net issue; extension to an existing OMB clearance instructions, searching existing data sources, gathering and maintaining the November 10, 1996, 8:30 a.m. - 5:00 (9000–0130). data needed, and completing and p.m. SUMMARY: Under the provisions of the reviewing the collection of information. The Law Enforcement Committee and Paperwork Reduction Act of 1995 (44 The annual reporting burden is Advisory Panel will meet to discuss the U.S.C. Chapter 35), the Federal estimated as follows: Respondents, consolidated regulations for the Acquisition Regulation (FAR) 1,140; responses per respondent, 5; total Southeast region, particularly the Secretariat has submitted to the Office annual responses, 5,700; preparation possible development of an index for of Management and Budget (OMB) a hours per response, .167; and total consolidated regulations and the request to review and approve an response burden hours, 952. development of a timeframe for review extension of a currently approved Obtaining Copies of Proposals: and revision of the consolidated information collection requirement Requester may obtain copies of regulations. They will also discuss how concerning Buy American Act—North justifications from the General Services 63832 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Administration, FAR Secretariat Mr. Shah A. Choudhury, Executive formal public meeting to discuss (MVRS), Room 4037, Washington, DC Secretary, Office of the Deputy Under concerns and comments on the DEIS. 20405, telephone (202) 501–4755. Please Secretary of Defense (Environmental Specific locations, dates and times will cite OMB Control No. 9000–0130, Buy Security), 3400 Defense Pentagon, Room be announced to those on the project American Act—North American Free 3C767, Washington, DC 20301–3400; mailing list (approximately 1,350 Trade Agreement Implementation Act— telephone (703) 697–7475. names) through the quarterly newsletter Balance of Payments Program Dated: November 25, 1996. ‘‘Focus,’’ other weekly newspapers, and Certificate, in all correspondence. L.M. Bynum, on the Massachusetts Military Dated: November 26, 1996. Alternate OSD Federal Register Liaison Reservation Environmental Impact Sharon A. Kiser, Officer, Department of Defense. Statement Web Page (http:// FAR Secretariat. [FR Doc. 96–30534 Filed 11–29–96; 8:45 am] www.tiac.net/users/mmreis). [FR Doc. 96–30575 Filed 11–29–96; 8:45 am] BILLING CODE 5000±04±M ADDRESSES: Copies of the DIES BILLING CODE 6820±EP±P Executive Summary of the full DEIS Department of the Army document will be made available to all addresses on the mailing list at their Office of the Secretary Draft Environmental Impact Statement option or on request from the general Meeting of the Defense Environmental (DEIS) for the Massachusetts Military public through advertisements in area Response Task Force Reservation (MMR), Cape Code, newspapers concerning the availability Massachusetts; Proposed Expansion of the DEIS. Additionally, copies of the AGENCY: Office of the Deputy Under entire DEIS and Executive Summary AGENCY: National Guard Bureau, Secretary of Defense (Environmental will be placed in each of the community Department of the Army. Security). public libraries cited herein as well as ACTION: Notice of availability (NOA). ACTION: Notice of business meeting and the MMR base library. Copies will also hearing. SUMMARY: The MAARNG is proposing be sent to Federal, state, regional and the development of the following: rifle local agencies and interested SUMMARY: Pursuant to Public Law 92– and machine gun ranges; battle course; organizations and agencies. 463, notice is hereby given of a business urban training sites; unit training FOR FURTHER INFORMATION CONTACT: meeting and hearing of the Defense equipment site; aircraft control tower; Environmental Response Task Force fire station; aircraft generation facility; Captain Tracy Norris, Project Officer, (DERTF). The DERTF is charged with and an environmental building. The Unified Environmental Planning Office, # studying and providing findings and purpose of this action is to improve Building 1204, Camp Edwards, MA recommendations about environmental readiness, training, and safety in order 02542; telephone (508) 968–5824. response actions at military installations to meet Army and Air National Guard Raymond J. Fatz, that are being closed or realigned. At the training demands and comply with Deputy Assistant Secretary of the Army meeting the DERTF will address issues environmental requirements. (Environment, Safety, and Occupational related to the effects of base closure in This document addresses the Health) OASA (I, L&E). California, the state role in cleanup at environmental impacts of the ten [FR Doc. 96–30604 Filed 11–29–96; 8:45 am] non-national priorities list sites, proposed actions, reasonable BILLING CODE 3710±08±M administrative reforms of Superfund, alternatives and the impacts upon and a panel presentation on Guard readiness of taking no action. The institutional controls. The DERTF also proposed action and each alternative Army Science Board; Notice of Open will be briefed on the cleanup program action consist of the following essential Meeting at the U.S. Marine Corps Air Station components: construction of modern (MCAS) Tustin and at MCAS El Toro. rifle and machine gun ranges and In accordance with Section 10(a)(2) of The business meeting and hearing will infantry assault courses that better the Federal Advisory Committee Act be open to the public. Public witnesses reflect realistic training conditions; (P.L. 92–463), announcement is made of who wish to speak before the DERTF expansion and update of maintenance the following Committee Meeting: should contact Shah A. Choudhury, and storage facility to accommodate Executive Secretary, and prepare a upwards of 150 track and wheel Name of Committee: Army Science Board written statement that can be vehicles that meet current occupational (ASB). Date of Meeting: 4 & 5 December 1996. summarized verbally before the DERTF safety requirements; replacement of TIme of Meeting: 0900–1600, (both days). at the time to be fixed for public airfield facilities that increase safety and Place: Pentagon—Washington, DC. comment as stated below. Written meet space and power requirements; Agenda: The Army Science Board (ASB) statements must be received by the close and provide for more efficient of business, December 23, 1996, at the 1997 Summer Study on ‘‘Application of administrative activities that serve Emerging Technologies to Distance Learning’’ Office of the Deputy Under Secretary of safety, environmental and Defense (Environment Security). will meet on the study subject. These administrative demands. meetings will be open to the public. Any The DEIS will be available for public DATE: January 8, 1997, 9:00 a.m.–7:30 interested person may attend, appear before, p.m.; January 9, 1997, 9:00 a.m.–5:30 review for 90 days from the date the or file statements with the committee at the p.m. Notice of Availability is published in time and in the manner permitted by the the Federal Register by the PUBLIC COMMENT PERIOD: January 8, committee. For further information, please Environmental Protection Agency. The 1997, 6:30 p.m.–7:30 p.m. call our office at (703) 695–0781. Massachusetts National Guard will ADDRESS: The Westin South Coast Plaza, conduct a series of four open houses Leonard Gliatta, 686 Anton Boulevard, Costa Mesa, CA (one in each of the four adjacent COL, GS, Army Science Board. 92626–1988. communities of Bourne, Falmouth, [FR Doc. 96–30543 Filed 11–29–96; 8:45 am] FOR FURTHER INFORMATION CONTACT: Mashpee and Sandwich) as well as a BILLING CODE 3710±08±M Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63833

Army Science Board; Notice of Closed Place: Pentagon—Washington, DC. inextricably intertwined so as to preclude Meeting Agenda: The Army Science Board (ASB) opening any portion of these meetings. For Ad Hoc Study on ‘‘Global Broadcast Service’’ further information, please contact our office In accordance with Section 10(a)(2) of will meet on the study subject. These at (703) 695–0781. the Federal Advisory Committee Act meetings will be closed to the public in Leonard Gliatta, accordance with Section 552(b)(c) of title 5, (P.L. 92–463), announcement is made of COL, GS, Army Science Board. the following Committee Meeting: U.S.C., specifically subparagraph (4) thereof, and Title 5, U.S.C., Appendix 2, subsection [FR Doc. 96–30548 Filed 11–29–96; 8:45 am] Name of Committee: Army Science Board 10(d). The proprietary matters to be BILLING CODE 3710±08±M (ASB). discussed are so inextricably intertwined so Date of Meeting: 11 & 12 December 1996. as to preclude opening any portion of these Time of Meeting: 0900–1600 (both days). meetings. For further information, please Place: Pentagon—Washington, DC. DEFENSE NUCLEAR FACILITIES contact our office at (703) 695–0781. SAFETY BOARD Agenda: The Army Science Board (ASB) Leonard Gliatta, 1997 Summer Study on ‘‘Battlefield Visualization’’ will meet on the study COL, GS, Army Science Board. Sunshine Act Meeting [FR Doc. 96–30546 Filed 11–29–96; 8:45 am] subject. These meetings will be closed to the Pursuant to the provisions of the public in accordance with Section 552b(c) of BILLING CODE 3710±08±M title 5, U.S.C., specifically subparagraph (4) ‘‘Government in the Sunshine Act’’ (5 thereof, and Title 5, U.S.C., Appendix 2, U.S.C. § 552b), notice is hereby given of subsection 10(d). The proprietary matters to Army Science Board; Notice of Closed the Defense Nuclear Facilities Safety be discussed are so inextricably intertwined Meeting Board’s (Board) fifth meeting in a series, so as to preclude opening any portion of described below, regarding the these meetings. For further information, In accordance with Section 10(a)(2) of Department of Energy’s (DOE) please contact our office at (703) 695–0781. the Federal Advisory Committee Act standards-based safety management Leonard Gliatta, (P.L. 92–463), announcement is made of program. The Board will also conduct a COL, GS, Army Science Board. the following Committee Meeting: public hearing pursuant to 42 U.S.C. [FR Doc. 96–30544 Filed 11–25–96; 8:45 am] Name of Committee: Army Science Board § 2286b to gather additional information BILLING CODE 3710±08±M (ASB). on the status of the Board’s oversight of Date of Meeting: 10 December 1996. the DOE’s initiatives to simplify existing Time of Meeting: 0800–1630 (both days). safety orders and to promulgate new Army Science Board; Notice of Closed Place: Pentagon—Washington, DC. rules and invites any interested persons Meeting Agenda: The Army Science Board (ASB) or groups, as well as DOE contractors, Independent Assessment on ‘‘Theater Air In accordance with Section 10(a)(2) of Defense/Theater Missile Defense Battle to present any comments, technical the Federal Advisory Committee Act (P. Management/Command, Control, information, or data concerning this L. 92–463), announcement is made of Communications, Computers & Intelligence matter. the following Committee Meeting: (TAD/TMD BMC4I)’’ will meet on the study TIME AND DATE: December 12, 1996, 9:00 subject. This meeting will be closed to the a.m. Name of Committee: Army Science Board public in accordance with Section 552b(c) of PLACE: (ASB). title 5, U.S.C., specifically subparagraph (4) The Defense Nuclear Facilities Date of Meeting: 7 & 8 January 1997. thereof, and Title 5, U.S.C., Appendix 2, Safety Board, Public Hearing Room, 625 Time of Meeting: 0900–1600 (both days). subsection 10(d). The proprietary matters to Indiana Avenue, NW, Suite 300, Place: Pentagon—Washington, DC. be discussed are so inextricably intertwined Washington, DC 20004. Agenda: The Army Science Board (ASB) so as to preclude opening any portion of this MATTERS TO BE CONSIDERED: The Board 1997 Summer Study on ‘‘Battlefield meeting. For further information, please will reconvene and continue the open Visualization’’ will meet on the study contact our office at (703) 695–0781. meeting conducted on November 7, subject. The meetings will be closed to the Leonard Gliatta, public in accordance with Section 552b(c) of 1996, regarding the adequacy of DOE’s COL, GS, Army Science Board. title 5, U.S.C., specifically subparagraph (4) standards-based safety management thereof, and Title 5, U.S.C., Appendix 2, [FR Doc. 96–30547 Filed 11–29–96; 8:45 am] program. The Department of Energy is subsection 10(d). The proprietary matters to BILLING CODE 3710±08±M scheduled to provide a status report and be discussed are so inextricably intertwined to respond to questions concerning the so as to preclude opening any portion of open issues identified at the Board’s these meetings. For further information, Army Science Board; Notice of Closed public meeting on November 7, 1996. please contact our office at (703) 695–0781. Meeting DOE contractors, public representatives, Leonard Gliatta, In accordance with Section 10(a)(2) of and others will be given an opportunity COL, GS, Army Science Board. the Federal Advisory Committee Act to present their comments on these [FR Doc. 96–30545 Filed 11–29–96; 8:45 am] (P.L. 92–463), announcement is made of safety orders and proposed rules. BILLING CODE 3710±08±M the following Committee Meeting: Some of the open issues that were identified by the Board’s staff during the Name of Committee: Army Science Board November 7, 1996 meeting are included (ASB). Army Science Board; Notice of Closed in the appendix to this notice. Meeting Date of Meeting: 10 December 1996. Time of Meeting: 0900–1200. CONTACT PERSON FOR MORE INFORMATION: In accordance with Section 10(a)(2) of Place: TBD. Robert M. Andersen, General Counsel , the Federal Advisory Committee Act Agenda: The Army Science Board’s (ASB) Defense Nuclear Facilities Safety Board, (P.L. 92–463), announcement is made of Ad Hoc Study on ‘‘Optimizing Unit 625 Indiana Avenue, NW, Suite 700, Capabilities Systems’’ will meet on the study the following Committee Meeting: Washington, DC 20004, (800) 788–4016. subject. This meeting will be closed to the This is a toll-free number. Name of Committee: Army Science Board public in accordance with Section 552b(c) of (ASB). Title 5, U.S.C., specifically paragraph (1) SUPPLEMENTARY INFORMATION: The Board Date of Meeting: 16 & 17 December 1996. thereof, and Title 5, U.S.C., Appendix 2, has a responsibility for oversight of Time of Meeting: 0900–1600, 16 Dec 96: subsection 10(d). The classified and DOE’s development and 0900–1700, 17 Dec 96. unclassified matters to be discussed are so implementation of nuclear health and 63834 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices safety requirements. DOE is endeavoring public meetings are on file and may be • Revision of DOE Order 435.1 and its to change existing safety orders to reviewed at the Board’s public associated Implementation Guide. • revised safety orders and rules. The document room. The removal of the decommissioning Board wants to make sure that the chapter from DOE Order 5820.2A and In accordance with the authority addition of appropriate requirements and requirements-based safety program now granted to the Board, and in furtherance guidance on decommissioning in DOE Order embodied in the DOE’s safety orders of its continuing responsibility for 430.1, Life Cycle Asset Management. and existing regulations is not oversight of these matters vital to the • Board comments and issuance of the compromised. public health and safety, a public Weapons Orders and Implementation Guide, The Board has held four public Board hearing is to be conducted by the Board DOE Orders 452.1 and 452.2. meetings, to date, in connection with on December 12, 1996, in an open • DOE’s action plan for DOE Order 210.1, DOE initiatives to revise and improve its meeting. This hearing is an information- that has included a performance indicator nuclear safety requirements. This will gathering function. Examination of program to provide an acceptable level of be the fifth in that series. On May 31, protection for the health and safety of those appearing before the Board will be workers and the public at defense nuclear 1995, the board met in open session, to limited to questions put to them by the lay the groundwork for a full assessment facilities. Board. Requests to speak at the hearing • Completion of Implementation Guide, of how Standards/Requirements may be submitted in writing or by DOE G 460.1–1 for use with DOE Order Identification Documents, rules, orders, telephone. We ask that commentators 460.1, Packaging and Transportation Safety, and other safety requirements are describe the nature and scope of their and Implementation Guide, DOE G 460.2–1 integrated into an overall safety oral presentation. Those who contact for use with DOE Order 460.2, Departmental management program for defense the Board prior to close of business on Materials Transportation and Packaging nuclear facilities. That public meeting December 11, 1996, will be scheduled Management. • Compatibility of the Nuclear Safety was continued on July 18, 1995. The for time slots, beginning at Board’s staff reported on its Rules (10 CFR Part 830) with the integrated approximately 2:30 p.m. The Board will safety management concepts of Board comprehensive review of existing orders post a schedule for those speakers who and rules, their adequacy, and the status Recommendation 95–2, and clarification of have contacted the Board before the the process for submitting Implementation of DOE revisions to safety orders and hearing. The posting will be made at the Plans by the contractors. rules. Individual Board members Reception Area (room 346) at the start • Technical issues relative to Nuclear presented their views. Then, in a joint of the 9:00 a.m. meeting. Safety Rules, 10 CFR Part 830. meeting with DOE officials on • Anyone who wishes to comment, Criteria for worker protection and related September 20, 1995, DOE’s issues, including: the requirements contained provide technical information or data, representative reported on the status of in the proposed Rules 10 CFR Part 830.110, may do so in writing, either in lieu of, DOE’s review and proposed revision of Safety Analysis Report; 10 CFR Part 830.320, or in addition to making an oral nuclear safety orders and rules. The Technical Safety Requirements, and 10 CFR presentation. The Board Members may Board at that time identified safety Part 830.112, Unreviewed Safety Questions. question presenters to the extent • Revised DOE Manual 232.1–1, issues requiring resolution, including Occurrence Reporting and Processing of inappropriate application of ‘‘sunset deemed appropriate. The Board will hold the record open until December 27, Operations Information, and discussion provisions’’ to safety orders, the need regarding the impact of the proposed rule to for ‘‘corsswalks’’ showing the 1996, for the receipt of materials. A transcript of this proceeding will be provide for reporting consistency throughout disposition of requirements in the complex. superseded safety orders and the need made available by the Board for • DOE’s proposed changes to the to preserve sound engineering practices inspection by the public at the Defense exemption rule relative to the ‘‘adequate embodied in guidance documents. The Nuclear Facilities Safety Board’s protection’’ and ‘‘special circumstances’’ Washington office. determination changes discussed by DOE. Board reserved its right to further • comment after it completed its The Board reserves its right to further Status of Board staff’s comments to the integrated review of how rules, orders, schedule and otherwise regulate the nine Implementation Guides, and planned revisions to the remaining three and other safety requirements are being course of this meeting and hearing, to recess, reconvene, and otherwise Implementation Guides and the standards revised and integrated into an overall related to Internal Dosimetry, and issuance of safety management program for defense exercise its authority under the Atomic the amendment to 10 CFR Part 835 regarding nuclear facilities. The Board reiterated Energy Act of 1954, as amended. Occupational Radiation Protection. its concern that DOE’s streamlining and Dated: November 27, 1996 [FR Doc. 96–30782 Filed 11–27–96; 3:01 pm] conversion process not compromise the John T. Conway, BILLING CODE 3670±01±M requirements-based safety program Chairman. currently embodied in contracts which incorporate applicable DOE safety Appendix—Issues Identified During orders. November 7, 1996 Meeting DEPARTMENT OF ENERGY On November 7, 1996, the Board held • Technical issues, finalization and Environmental Management Site- its fourth public meeting to assess issuance of Implementation Guides DOE’s progress in streamlining the Specific Advisory Board, Department associated with DOE Order 420.1, Facility of Energy, Los Alamos National safety orders and promulgating new Safety. safety rules pertaining to its defense • Preparation of a nuclear design Laboratory; Notice of Open Meeting nuclear facilities, and to assure that handbook to capture and document the AGENCY: Department of Energy. extensive years of sound engineering DOE’s activities in streamlining DOE’s ACTION: Notice of Open Meeting. nuclear safety order system and practices developed during many years of experience. converting to its new regulatory system SUMMARY: Pursuant to the provisions of • Previous Board comments regarding DOE did not eliminate the sound engineering Order 251.1A, Directives System, and the the Federal Advisory Committee Act practices now codified in its safety associated manual. (Public Law 92–463, 86 Stat. 770) notice orders that are necessary to adequately • Issuance of a Glossary of Terms to is hereby given of the following protect public health and safety. include definitions previously contained in Advisory Committee meeting: Transcripts of each of the four previous DOE orders and rules. Environmental Management Site- Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63835

Specific Advisory Board (EM SSAB), Federal Energy Regulatory [Docket No. RP97±89±000] Los Alamos National Laboratory. Commission Alabama-Tennessee Natural Gas DATES: Tuesday, December 10, 1996: Company; Notice of Waiver of Tariff 6:30 pm–9:30 pm; 7:00 pm to 7:30 pm [Docket No. RP97±88±000] Provisions (public comment session). Alabama-Tennessee Natural Gas November 25, 1996. ADDRESSES: Hotel Santa Fe, 1501 Paseo Company; Notice of Proposed Take notice that on November 20, de Peralta, Santa Fe, New Mexico Changes in FERC Gas Tariff 1996, Alabama-Tennessee Natural Gas 87501. Company (Alabama-Tennessee) November 25, 1996. FOR FURTHER INFORMATION CONTACT: Ms. tendered for filing a petition for waiver Ann DuBois, Los Alamos National Take notice that on November 20, of Section 3.14(e) of the General Terms Laboratory Citizens’ Advisory Board 1996, Alabama-Tennessee Natural Gas and Conditions of its FERC Gas Tariff, Support, Northern New Mexico Company (Alabama-Tennessee) Second Revised Volume No. 1, to permit Community College, 1002 Onate Street, tendered for filing as part of its FERC Alabama-Tennessee to conduct a right- Espanola, NM 87352, (800)753–8970, or Gas Tariff, Second Revised Volume No. of-first refusal process in excess of six (505)753–8970, or (505)262–1800. 1, the tariff sheets listed below, with a months with respect to four expiring SUPPLEMENTARY INFORMATION: proposed effective date of December 20, firm transportation contracts with 1996: Decatur Utilities, City of Decatur, Purpose of the Board: The purpose of Third Revised Sheet No. 101 Alabama (Decatur). the Advisory Board is to make Original Sheet No. 101A Alabama-Tennessee states that the recommendations to DOE and its requested one-time waiver is necessary regulators in the areas of environmental Alabama-Tennessee states that this to permit Alabama-Tennessee to provide restoration, waste management, and filing is submitted pursuant to Section new FT services for the 1997–1998 related activities. 4 of the Natural Gas Act and 18 CFR winter heating season if Decatur elects Tentative Agenda: Part 154 of the Rules and Regulations of to match any bids for capacity under the the Commission. expiring contracts. Tuesday, December 10, 1996 Alabama-Tennessee also states that Alabama-Tennessee states that copies 6:30 P.M. Call to Order and Welcome the tariff sheets are being submitted to of the filing have been served upon all customers of Alabama-Tennessee and 7:00 P.M. Public Comment replace Alabama-Tennessee’s current Section 3.14(e) of the General Terms affected state commissions. 7:30 P.M. Old Business and Conditions of its tariff. Specifically, Any person desiring to be heard or to 9:00 P.M. New Business Section 3.14(e) is being changed so as to protest said filing should file a motion 9:30 P.M. Adjourn provide that Alabama-Tennessee shall to intervene or protest with the Federal Energy Regulatory Commission, 888 Public Participation: The meeting is be entitled to post capacity subject to First Street NE., Washington, DC 20426, open to the public. Written statements the right of first refusal up to one (1) in accordance with Sections 385.214 may be filed with the Committee either year prior to the expiration of and 385.211 of the Commission’s before or after the meeting. Individuals transportation contract(s) if construction regulations. All such motions or protests who wish to make oral statements is needed. must be filed as provided in Section pertaining to agenda items should Alabama-Tennessee has requested 154.210 of the Commission’s contact Ms. Ann DuBois, at (800) 753– that the Commission grant all waivers of Regulations. Protests will be considered 8970. Requests must be received 5 days its regulations necessary, if any, to by the Commission in determining prior to the meeting and reasonable implement the revised tariff sheets on appropriate action to be taken, but will provision will be made to include the December 20, 1996. not serve to make protestants parties to presentation in the agenda. The Any person desiring to be heard or to the proceedings. Any person wishing to Designated Federal Official is protest said filing should file a motion become a party must file a motion to empowered to conduct the meeting in a to intervene or protest with the Federal intervene. Copies of this filing are on fashion that will facilitate the orderly Energy Regulatory Commission, 888 file with the Commission and are conduct of business. First Street, N.E., Washington, D.C. available for public inspection. Minutes: The minutes of this meeting 20426, in accordance with Sections Lois D. Cashell, will be available for public review and 385.214 and 385.211 of the Secretary. copying at the Freedom of Information Commission’s regulations. All such [FR Doc. 96–30561 Filed 11–29–96; 8:45 am] Public Reading Room, 1E–190, Forrestal motions or protests must be filed as Building, 1000 Independence Avenue, provided in Section 154.210 of the BILLING CODE 6717±01±M SW, Washington, DC 20585 between Commission’s Regulations. Protests will 9:00 a.m. and 4 p.m., Monday–Friday, be considered by the Commission in [Docket No. CP97±104±000] except Federal holidays. Minutes will determining appropriate action to be also be available by writing to Herman taken, but will not serve to make CNG Transmission Corporation; Notice Le-Doux, Department of Energy, Los protestants parties to the proceedings. of Application for Abandonment Alamos Area Office, 528 35th Street, Los Any person wishing to become a party November 25, 1996. Alamos, NM 87185–5400. must file a motion to intervene. Copies Take notice that on November 19, Issued at Washington, DC on November 26, of this filing are on file with the 1996, CNG Transmission Corporation 1996. Commission and are available for public (CNG), 445 West Main Street, Rachel M. Samuel, inspection. Clarksburg, West Virginia 26301, filed Acting Deputy Advisory Committee Lois D. Cashell, in Docket No. CP97–104–000, an Management Officer. Secretary. application pursuant to Section 7(b) of [FR Doc. 96–30593 Filed 11–29–96; 8:45 am] [FR Doc. 96–30560 Filed 11–29–96; 8:45 am] the Natural Gas Act and Part 157 of the BILLING CODE 6450±01±P BILLING CODE 6717±01±M Commission’s Regulations for 63836 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices permission and approval to abandon 1.3 unnecessary for CNG to appear or to be [Project No. 11464±000±Utah] miles of small diameter gathering represented at the hearing. Utah State University; Notice of pipeline, authorized by CNG’s blanket Lois D. Cashell, Surrender of Preliminary Permit certificate in Docket No. CP82–537–000, Secretary. by sale to American Refining and [FR Doc. 96–30555 Filed 11–29–96; 8:45 am] November 25, 1996. Exploration Company (AR&E), all as BILLING CODE 6717±01±M Take notice that Utah State University more fully set forth in the application has requested to surrender its which is on file with the Commission preliminary permit for the U.S.U. and open to public inspection. [Docket No. CP97±111±000] Project No. 11464, which would have CNG relates that the 1.3 miles, Northern Natural Gas Company; been located in Logan, Utah. The composing 6 blanket-certificated lines, Notice of Request Under Blanket preliminary permit was issued on are a part of its sale to AR&E of 177 Authorization November 14, 1994, and would have miles of gathering facilities, which expired on October 31, 1997. includes: approximately 175.7 miles of November 25, 1996. The permittee requested the surrender uncertificated gathering lines, three Take notice that on November 20, on October 31, 1996, and the filed compressor stations, and other 1996, Northern Natural Gas Company preliminary permit shall remain in non-jurisdictional production properties (Northern), 1111 South 103rd Street, effect through the thirtieth day after located in Clearfield, Elk, and Cameron Omaha, Nebraska 68124–1000, filed a issuance of this notice unless that day Counties, Pennsylvania. CNG requests request with the Commission in Docket is a Saturday, Sunday or holiday as that the Commission make a No. CP97–111–000, pursuant to described in 18 CFR 385.2007, in which determination of the non-jurisdictional Sections 157.205, 157.121 and case the permit shall remain in effect nature of the facilities and AR&E 157.216(b) of the Commission’s through the first business day following operations of the gathering lines and Regulations under the Natural Gas Act that day. New applications involving compressors following the sale to AR&E. (NGA) for authorization to retire five (5) this project site, to the extent provided of its meters and appurtenant facilities for under 18 CFR Part 4, may be filed Any person desiring to be heard or to and then upgrade the existing delivery on the next business day. make any protest with reference to said points to accommodate incremental gas Lois D. Cashell, application should on or before deliveries to Wisconsin Power & Light December 16, 1996, file with the Federal Secretary. (WP&L) authorized in blanket certificate [FR Doc. 96–30558 Filed 11–29–96; 8:45 am] Energy Regulatory Commission, issues in Docket No. CP82–401–000, all BILLING CODE 6717±01±M Washington, D.C. 20426, a motion to as more fully set forth in the request on intervene or a protest in accordance file with the Commission and open to with the requirements of the public inspection. [Docket No. CP97±108±000] Commission’s Rules of Practice and Northern proposes to upgrade five (5) Procedure (18 CFR 385.214 and existing delivery points located in Williams Natural Gas Company; Notice 385.211) and the regulations under the Columbia, Rock, Lafayette and Iowa of Request Under Blanket Natural Gas Act (18 CFR 157.10). All Counties, Wisconsin. In addition Authorization protests filed with the Commission will Northern proposes to retire the meters November 25, 1996. be considered by it in determining the and appurtenant facilities associated appropriate action to be taken but will Take notice that on November 19, with the upgrade of the existing delivery 1996, Williams Natural Gas Company not serve to make the protestants parties points which would accommodate to the proceeding. Any person wishing (WNG), One Williams Center, Tulsa, natural gas deliveries to WP&L. Oklahoma 74101 filed in Docket No. to become a party in any proceeding Northern states that the estimated total herein must file a motion to intervene CP97–108–000 a request pursuant to cost to install and upgrade the proposed Sections 157.205, and 157.212 of the in accordance with the Commission’s facilities would be $212,700. rules. Commission’s Regulations under the Any person or the Commission’s staff Natural Gas Act (18 CFR 157.205 and Take further notice that, pursuant to may, within 45 days after the 157.212) for approval and permission to the authority contained in and subject to Commission has issued this notice, file install and operate a delivery tap and the jurisdiction conferred upon the pursuant to Rule 214 of the appurtenant facilities for the delivery of Commission by Sections 7 and 15 of the Commission’s Procedural Rules (18 CFR transportation gas to Cal-Maine Foods, Natural Gas Act and the Commission’s 385.214) a motion to intervene or notice Inc. (Cal-Maine), located in Rice County, Rules of Practice and Procedure, a of intervention and pursuant to Section Kansas, under the blanket certificate hearing will be held without further 157.205 of the Regulations under the issued in Docket No. CP82–479–000, notice before the Commission or its NGA (18 CFR 157.205) a protest to the pursuant to Section 7(c) of the Natural designee on this application if no request. If no protest is filed within the Gas Act (NGA), all as more fully set motion to intervene is filed within the allowed time, the proposed activity forth in the request which is on file with time required herein, if the Commission shall be deemed to be authorized the Commission and open to public on its own review of the matter finds effective the day after the time allowed inspection. that permission and approval for the for filing a protest. If a protest is filed WNG states that it proposes to install proposed abandonment are required by and not withdrawn within 30 days after and operate a delivery tap, measuring, the public convenience and necessity. If the time allowed for filing a protest, the and appurtenant facilities in Rice a motion for leave to intervene is timely instant request shall be treated as an County, Kansas to deliver transportation filed, or if the Commission on its own application for authorization pursuant gas to Cal-Maine for use in a new egg motion believes that formal hearing is to Section 7 of the NGA. production facility near Chase, Kansas. required, further notice of such hearing Lois D. Cashell, WNG further states that the deliveries will be duly given. Secretary. through the facilities proposed herein Under the procedure herein provided [FR Doc. 96–30557 Filed 11–29–96; 8:45 am] will have no effect on WNG’s existing for, unless otherwise advised, it will be BILLING CODE 6717±01±M customers. It is estimated that the Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63837 annual delivered volume of natural gas [Docket No. RP97±93±000] Gladstone of approximately 2.5% for the proposed facilities will be annually. UPPCO has asked for waiver approximately 11,000 Dth with a peak Young Gas Storage Company Ltd.; of the FERC’s regulations to the extent day volume of 100 Dth. WNG asserts Notice of Proposed Changes in FERC necessary to permit the proposed Power that the total volume of natural gas to be Gas Tariff Service Agreement to be made effective delivered after the request will not November 25, 1996. as of October 1, 1996. exceed the total volume of natural gas Take notice that on November 21, Comment date: December 6, 1996, in authorized prior to the request. WNG 1996, Young Gas Storage Company Ltd. accordance with Standard Paragraph E indicates that the cost to construct the (Young), tendered for filing to become at the end of this notice. proposed facilities is estimated to be part of its FERC Gas Tariff, Original approximately $10,750 which will be 2. Northern Indiana Public Service Volume No. 1, the pro forma tariff Company fully reimbursed by Cal-Maine. It is sheets listed in Appendix A to the further indicated that Cal-Maine will filing, to be effective May 1, 1997. [Docket No. ER97–451–000] own, and WNG will operate and Young states that the purpose of this Take notice that on November 12, maintain the proposed facilities. compliance filing is to conform Young’s 1996, Northern Indiana Public Service Any person or the Commission’s Staff tariff to the requirements of Order No. Company, tendered for filing an may, within 45 days after the issuance 587. executed Standard Transmission of the instant notice by the Commission, Young further states that copies of Service Agreement between Northern file pursuant to Rule 214 of the this filing have been served on Young’s Indiana Public Service Company and Commission’s Rules of Practice and jurisdictional customers and public Aquila Power Corporation. Procedure (18 CFR 385.214), a motion to bodies. Under the Transmission Service Any person desiring to be heard or to intervene or notice of intervention and Agreement, Northern Indiana Public protest this filing should file a motion pursuant to Section 157.205 of the Service Company will provide Point-to- to intervene or protest with the Federal Regulations under the Natural Gas Act Point Transmission Service to Aquila Energy Regulatory Commission, 888 (18 CFR 157.205), a protest to the Power Corporation pursuant to the First Street, N.E., Washington, DC request. If no protest is filed within the Transmission Service Tariff filed by 20426, in accordance with Section time allowed therefor, the proposed Northern Indiana Public Service 385.214 and Section 385.211 of the activities shall be deemed to be Company in Docket No. ER96–1426–000 Commission’s Regulations. All such authorized effective the day after the and allowed to become effective by the motions or protests must be filed on or time allowed for filing a protest. If a Commission. Northern Indiana Public before December 12, 1996. Protests will protest is filed and not withdrawn 30 Service Company, 75 FERC ¶ 61,213 be considered by the Commission in days after the time allowed for filing a (1996). Northern Indiana Public Service determining the appropriate action to be protest, the instant request shall be Company has requested that the Service taken, but will not serve to make treated as an application for Agreement be allowed to become protestants parties to the proceeding. authorization pursuant to Section 7 of effective as of November 8, 1996. the Natural Gas Act. Any person wishing to become a party must file a motion to intervene. Copies Copies of this filing have been sent to Lois D. Cashell, the Indiana Utility Regulatory Secretary. of this filing are on file with the Commission and are available for public Commission and the Indiana Office of [FR Doc. 96–30556 Filed 11–29–96; 8:45 am] inspection in the Public Reference Utility Consumer counselor. BILLING CODE 6717±01±M Room. Comment date: December 6, 1996, in Lois D. Cashell, accordance with Standard Paragraph E Secretary. at the end of this notice. [Docket No. RP96±387±000] [FR Doc. 96–30562 Filed 11–29–96; 8:45 am] 3. Northern Indiana Public Service Williams Natural Gas Company; Notice BILLING CODE 6717±01±M Company of Technical Conference [Docket No. ER97–452–000] [Docket No. ER97±450±000, et al.] November 25, 1996. Take notice that on November 12, 1996, Northern Indiana Public Service In the Commission’s order issued on Upper Peninsula Power Company, et Company, tendered for filing an October 31, 1996, in the above- al.; Electric Rate and Corporate executed Standard Transmission captioned proceeding, the Commission Regulation Filings held that the filing raises issues for Service Agreement between Northern which a technical conference is to be November 22, 1996. Indiana Public Service Company and convened. Take notice that the following filings Wolverine Power Supply Cooperative, Inc. The conference to address the issues have been made with the Commission: Under the Transmission Service has been scheduled for Thursday, 1. Upper Peninsula Power Company December 12, 1996, at 10:00 a.m. in a Agreement, Northern Indiana Public [Docket No. ER97–450–000] room to be designated at the offices of Service Company will provide Point-to- the Federal Energy Regulatory Take notice that on November 12, Point Transmission Service to Commission, 888 First Street, N.E., 1996, Upper Peninsula Power Company Wolverine Power Supply Cooperative, Washington, D.C. 20426. (UPPCO), tendered for filing a proposed Inc. pursuant to the Transmission Power Service Agreement for sales of Service Tariff filed by Northern Indiana All interested persons and Staff are electricity to the Village of L’Anse, Public Service Company in Docket No. permitted to attend. Michigan. UPPCO states that the rates ER96–1426–000 and allowed to become Lois D. Cashell, established in the Power Service effective by the Commission. Northern Secretary. Agreement for the year ending Indiana Public Service Company, 75 [FR Doc. 96–30559 Filed 11–29–96; 8:45 am] September 30, 1997 will result in a FERC ¶ 61,213 (1996). Northern Indiana BILLING CODE 6717±01±M decrease in revenues from sales to Public Service Company has requested 63838 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices that the Service Agreement be allowed Comment date: December 6, 1996, in Commission and the Indiana Office of to become effective as of October 18, accordance with Standard Paragraph E Utility Consumer Counselor, and all 1996. at the end of this notice. customers having service agreements with Northern Indiana under the Power Copies of this filing have been sent to 7. Northern States Power Company Sales Tariff. the Indiana Utility Regulatory (Minnesota Company) Commission and the Indiana Office of Comment date: December 6, 1996, in Utility Consumer Counselor. [Docket No. ER97–456–000] accordance with Standard Paragraph E Comment date: December 6, 1996, in Take notice that on November 13, at the end of this notice. accordance with Standard Paragraph E 1996, Northern States Power Company at the end of this notice. (Minnesota) (NSP), tendered for filing a 10. Northern States Power Company Firm Point-to-Point Transmission (Minnesota Company) 4. Central Illinois Public Service Service Agreement between NSP and [Docket No. ER97–459–000] Company Wisconsin Electric Power Company. [Docket No. ER97–453–000] NSP requests that the Commission Take notice that on November 12, 1996, Northern States Power Company Take notice that on November 12, accept the agreement effective November 1, 1996, and requests waiver (Minnesota) (NSP), tendered for filing a 1996, Central Illinois Public Service Firm Point-to-Point Transmission Company (CIPS) submitted a service of the Commission’s notice requirements in order for the agreement Service Agreement between NSP and agreement, dated October 31, 1996, City of New Ulm, MN. establishing The Power Company of to be accepted for filing on the date America (PCA) as a customer under the requested. NSP requests that the Commission terms of CIPS’ Open Access Comment date: December 6, 1996, in accept the agreement effective October Transmission Tariff. accordance with Standard Paragraph E 16, 1996, and requests waiver of the Commission’s notice requirements in CIPS requests an effective date of at the end of this notice. order for the agreement to be accepted October 31, 1996 for the service 8. Northeast Utilities Service Company for filing on the date requested. agreements. Accordingly, CIPS requests [Docket No. ER97–457–000] waiver of the Commission’s notice Comment date: December 6, 1996, in requirements. Copies of this filing were Take notice that on November 13, accordance with Standard Paragraph E served upon PCA and the Illinois 1996, Northeast Utilities Service at the end of this notice. Commerce Commission. Company (NUSCO), tendered for filing, a Service Agreement to provide Non- 11. Northern States Power Company Comment date: December 6, 1996, in (Minnesota Company) accordance with Standard Paragraph E Firm Point-to-Point Transmission at the end of this notice. Service to Aquila Power Corporation [Docket No. ER97–460–000] under the NU System Companies’ Open Take notice that on November 12, 5. Florida Power Corporation Access Transmission Service Tariff No. 1996, Northern States Power Company 8. [Docket No. ER97–454–000] (Minnesota) (NSP), tendered for filing a NUSCO states that a copy of this filing Firm Point-to-Point Transmission Take notice that on November 13, has been mailed to Aquila Power Service Agreement for NSP Wholesale 1996, Florida Power Corporation Corporation. under the Northern States Power (Florida Power), tendered for filing two NUSCO requests that the Service Company Transmission tariff. agreements between itself and Tampa Agreement become effective November Electric Company: a Service Agreement 15, 1996. NSP requests that the Commission for Network Integration Transmission Comment date: December 6, 1996, in accept the agreement effective Service, and a Network Operating accordance with Standard Paragraph E November 11, 1996, and requests waiver Agreement. The Agreements describe at the end of this notice. of the Commission’s notice services to be provided to TECO requirements in order for the agreement pursuant to the terms and conditions of 9. Northern Indiana Public Service to be accepted for filing on the date the Company’s open access Company requested. transmission tariff (T–6 Tariff). Florida [Docket No. ER97–458–000] Comment date: December 6, 1996, in Power requests that the Commission Take notice that on November 12, accordance with Standard Paragraph E waive its notice of filing requirements 1996, Northern Indiana Public Service at the end of this notice. and allow the agreement to become Company (Northern Indiana), tendered 12. Atlantic City Electric Company effective on November 14, 1996. for filing certain revisions to its Power Comment date: December 6, 1996, in Sales Tariff. [Docket No. ER97–461–000] accordance with Standard Paragraph E Northern Indiana Public Service at the end of this notice. Take notice that on November 14, Company states that the revisions to the 1996, Atlantic City Electric Company 6. Toledo Edison Company Power Sales Tariff include unbundling (ACE), tendered for filing executed Power Sales from transmission services [Docket No. ER97–455–000] service agreements under which ACE as required under Order No. 888 and will sell power and energy at market- Take notice that on November 13, instituting market-based power sales based rates to The Power Company of 1996, Toledo Edison Company (Toledo rates for Northern Indiana Public America, L.P. (PCA) and CPS Utilities Edison), tendered for filing with the Service Company under the Power Sales (CPS) in accordance with ACE’s Federal Energy Regulatory Commission Tariff. Northern Indiana Public Service Wholesale Power Sales Tariff. a market-based sales tariff. Company has requested waiver of the Toledo Edison requests that its tariff Commission’s Regulations to allow the ACE states that a copy of the filing has be accepted for filing and allowed to revisions to the Power Sales Tariff to been served on PCA and CPS. become effective as soon as possible and become effective November 8, 1996. Comment date: December 6, 1996, in in any event no later than January 13, Copies of this filing have been sent to accordance with Standard Paragraph E 1997. the Indiana Utility Regulatory at the end of this notice. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63839

13. Pacific Gas and Electric Company proceeding, whichever is earlier. 19. The Dayton Power and Light [Docket No. ER97–462–000] AMVEST Coal Sales, Inc., intends to Company engage in electric energy and capacity Take notice that on November 14, [Docket No. ER97–468–000] transactions as a marketer. 1996, Pacific Gas and Electric Company Comment date: December 6, 1996, in Take notice that on November 14, (PG&E), tendered for filing a rate accordance with Standard Paragraph E 1996, The Dayton Power and Light schedule change to PG&E Rate Schedule at the end of this notice. Company (Dayton), submitted service FERC No. 149, between Pacific Gas and agreements establishing Electric Electric Co., (PG&E), and Lassen 16. Florida Power & Light Company Clearinghouse, Inc. (ECT); Vitol Gas & Municipal Utility District (Lassen). [Docket No. ER97–465–000] Electric L.L.C. (Vitol); CINergy Services, PG&E’s filing submits an agreement, Inc. (Cinergy); Southern Energy Take notice that on November 14, entitled Three-Day Islanding Agreement Marketing, Inc. (SEMI); Minnesota 1996, Florida Power & Light Company By And Between Lassen Municipal Power & Light Company (MP&L) as (FPL), tendered for filing a proposed Utility District And Pacific Gas and customers under the terms of Dayton’s notice of cancellation of an umbrella Electric Company. This agreement, Open Access Transmission Tariff. which was executed on October 1, 1996, service agreement with Seminole Dayton requests an effective date of sets forth provisions for reimbursing Electric Cooperative Incorporated for one day subsequent to this filing for the PG&E for costs incurred during Firm Short-Term transmission service service agreements. Accordingly, emergency islanding on behalf of and under FPL’s Open Access Transmission Dayton requests waiver of the for the sole benefit of Lassen in response Tariff. Commission’s notice requirements. to a severe storm in December 1995. FPL requests that the proposed Copies of this filing were served upon Copies of this filing have been served cancellation be permitted to become ECI, Vitol, Cinergy, SEMI or MP&L, and upon Lassen, Western Area Power effective on July 9, 1997. the Public Utilities Commission of Ohio. Administration, and the California FPL states that this filing is in Comment date: December 6, 1996, in Public Utilities Commission. accordance with Part 35 of the accordance with Standard Paragraph E Comment date: December 6, 1996, in Commission’s Regulations. at the end of this notice. accordance with Standard Paragraph E Comment date: December 6, 1996, in at the end of this notice. accordance with Standard Paragraph E 20. The Dayton Power and Light at the end of this notice. Company 14. Pacific Gas and Electric Company 17. PECO Energy Company [Docket No. ER97–469–000] [Docket No. ER97–463–000] Take notice that on November 14, [Docket No. ER97–466–000] Take notice that on November 14, 1996, The Dayton Power and Light 1996, Pacific Gas and Electric Company Take notice that on November 14, Company (Dayton) submitted service (PG&E), tendered for filing a rate 1996, PECO Energy Company (PECO), agreements establishing Sonat Power schedule change to PG&E Rate Schedule filed a Service Agreement dated Marketing L.P. (SPMLP); CNG Power FERC No. 149, between Pacific Gas and November 1, 1996 with AIG Trading Services Corp. (CNG); Western Power Electric Co., (PG&E), and Lassen Corporation (AIG) under PECO’s FERC Services, Inc. (WPS); TransCanada Municipal Utility District (Lassen). Electric Tariff Original Volume No. 5 Power Corp. (TCP); Rainbow Energy PG&E’s filing submits a contract, (Tariff). The Service Agreement adds Marketing Corporation (REMC); Morgan entitled ‘‘Islanding Agreement Between AIG as a customer under the Tariff. Stanley Capital Group (MSCG); Federal Lassen Municipal Utility District, HL PECO requests an effective date of Energy Sales, Inc. (FES); AYP Energy, Power Company and Pacific Gas and November 1, 1996, for the Service Inc. (AYP); Minnesota Power & Light Electric Company.’’ This contract sets Agreement. Company (MP&L); Heartland Energy forth provisions for reimbursing PG&E PECO states that copies of this filing Services, Inc. (HES) and Coral Power, for costs incurred during Islanding on have been supplied to AIG and to the L.L.C. (CP) as a customer under the behalf of and for the sole benefit of Pennsylvania Public Utility terms of Dayton’s Market-Based Sales Lassen. Commission. Tariff. Copies of this filing have been served Comment date: December 6, 1996, in Dayton requests an effective date of upon Lassen, HL Power Company, accordance with Standard Paragraph E one day subsequent to this filing for the Western Area Power Administration, at the end of this notice. service agreements. Accordingly, and the California Public Utilities 18. Northern States Power Company Dayton requests waiver of the Commission. (Minnesota Company) Commission’s notice requirements. Comment date: December 6, 1996, in Copies of this filing were served upon accordance with Standard Paragraph E [Docket No. ER97–467–000] SPMLP, MSCG, REMC, TCP, WPS, CNG, at the end of this notice. Take notice that on November 14, FES, AYP, MP&L, HES, or CP and the 1996, Northern States Power Company 15. AMVEST Coal Sales, Inc. Public Utilities Commission of Ohio. (Minnesota) (NSP), tendered for filing Comment date: December 6, 1996, in [Docket No. ER97–464–000] two Firm Point-to-Point Transmission accordance with Standard Paragraph E Take notice that on November 14, Service Agreements between NSP and at the end of this notice. 1996, AMVEST Coal Sales, Inc., Sonat Power Marketing L.P. tendered for filing, pursuant to Rule 207 NSP requests that the Commission Standard Paragraph of the Commission’s Rules of Practice accept the agreements effective October E. Any person desiring to be heard or and Procedure, 18 CFR 385.207, an 15, 1996, and requests waiver of the to protest said filing should file a application for waivers and blanket Commission’s notice requirements in motion to intervene or protest with the approvals under various regulations of order for the agreements to be accepted Federal Energy Regulatory Commission, the Commission, and an order accepting for filing on the date requested. 888 First Street, N.E., Washington, D.C. its Rate Schedule No. 1, to be effective Comment date: December 6, 1996, in 20426, in accordance with Rules 211 January 14, 1997, or the date that the accordance with Standard Paragraph E and 214 of the Commission’s Rules of Commission issues an order in this at the end of this notice. Practice and Procedure (18 CFR 385.211 63840 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices and 18 CFR 385.214). All such motions [email protected]; for properly operated and maintained or protests should be filed on or before NSPS Subpart S: Jane Engert of the equipment. VOC emissions are the the comment date. Protests will be Manufacturing Energy, and result of evaporation of volatile organic considered by the Commission in Transportation Division (mail code liquids contained in the vessels. These determining the appropriate action to be 2223A), telephone (202) 564–5021, standards rely on the owner or operator taken, but will not serve to make facsimile (202) 564–0050 or e-mail to equip their storage vessels with a protestants parties to the proceeding. [email protected].; for NSPS floating roof, a vapor recovery system or Any person wishing to become a party Subparts T, U, V, W, and X: Steve their equivalents. must file a motion to intervene. Copies Howie, telephone (202) 564–4146, In order to ensure compliance with of this filing are on file with the facsimile (202) 564–0085 or Cletis these standards, adequate recordkeeping Commission and are available for public Mixon, telephone (202) 564–4153, is necessary. In the absence of such inspection. facsimile (202) 564–0085, of the information, enforcement personnel Lois D. Cashell, Agriculture and Ecosystems Division, would be unable to determine whether Secretary. Agriculture Branch (mail code 2225A); the standards are being met on a [FR Doc. 96–30554 Filed 11–29–96; 8:45 am] for NSPS Subpart AAA: Robert C. continuous basis, as required by the Clean Air Act. Generally, this BILLING CODE 6717±01±P Marshall, Jr., of the Wood Heater Program, telephone (202) 564–7021, information will be readily available facsimile (202) 564–0039 or e-mail because it is needed for plant records. [email protected].; and As a result, there should be no ENVIRONMENTAL PROTECTION additional burden from these AGENCY for NESHAP Subparts F, G, H, and I, the Hazardous Organic NESHAP (HON): requirements. [FRL±5657±4] Marcia Mia of the Chemical, The format of the rule is the collecting Commercial Services and Municipal and maintaining of prescribed Agency Information Collection Division, (mail code 2224A), telephone information. An owner or operator shall Activities; Proposed Collection; (202) 564–7042, facsimile (202) 564– maintain a record of the petroleum Comment Request; New Source 0009 or e-mail liquid stored, the period of storage and Performance Standards for Subparts [email protected]. the maximum true vapor pressure of K, Kb, S, T, U, V, W, X, and AAA and that liquid during the storage period. NESHAP Subparts F, G, H, and I SUPPLEMENTARY INFORMATION: Determining the vapor pressure may be ascertained by nomographs contained in AGENCY: Environmental Protection NSPS Subpart K: Petroleum Liquid API Bulletin 2517 or from liquid Agency (EPA). Storage Vessels Supplementary Information samples taken from a storage vessel, if ACTION: Notice. specified by the Administrator. Affected entities: Entities potentially SUMMARY: In compliance with the Initial notifications are required by affected by this action are those which the General Provisions at 40 CFR section Paperwork Reduction Act (44 U.S.C. maintain storage vessels containing 3501 et seq.), this document announces 60.7. These initial reports include petroleum liquids which have a storage notification of construction or that EPA is planning to submit the capacity greater than 151,412 liters following proposed and/or continuing modification, reconstruction, startup, (40,000 gallons) that commenced shutdown, or malfunction. Due to the Information Collection Requests (ICR) to construction, reconstruction or the Office of Management and Budget time frames established under Subpart modification after June 11, 1973 and K, there can be no new notices for (OMB). Before submitting the ICRs to prior to May 19, 1978. Exemptions to construction. Subpart K, itself, does not OMB for review and approval, EPA is this Subpart are for those storage vessels require further notifications to the soliciting comments on specific aspects for petroleum or condensate stored, Agency. of the proposed information collection processed, and/or treated at a drilling Information generated by notifications as described below. and production facility prior to custody and recordkeeping is used by the DATES: Comments must be submitted on transfer. This document is to begin the Agency to ensure that facilities affected or before January 31, 1997. process of reissuing an OMB number for by the NSPS continue to operate the ADDRESSES: Office of Enforcement and an information collection request that control equipment used to achieve Compliance Assurance, Office of has lapsed. compliance. Notification of construction Compliance. People interested in getting Title: The New Source Performance and startup indicated to the Agency that copies of or making comments about Standards (NSPS) for Petroleum Liquid an affected facility was being these ICRs should direct inquiries or Storage Vessels at 40 CFR Part 60, constructed and therefore subject to the comments to the Office of Compliance, Subpart K, ICR Control Number standards. If the information were not Mail Code 2224A, 401 M Street, S.W., 1797.01. collected, the Agency would have no Washington, DC 20460. Information Abstract: The ICR contains recording means for ensuring that compliance may also be acquired electronically and recordkeeping requirements under with the NSPS was achieved and through the Enviro$en$e Bulletin Board, 40 CFR Part 60, Subpart K, that apply maintained by the sources subject to the (703) 908–2092 or the Enviro$en$e to Petroleum Liquid Storage Vessels. In regulation. Under these circumstances, WWW/Internet Address, http// the Administrator’s judgment volatile an owner or operator could elect to wastenot.inel.gov./envirosense/. All organic compound (VOC) emissions reduce operating expenses by not responses and comments will be from petroleum storage vessels cause or installing, maintaining, or otherwise collected regularly for Enviro$en$e contribute to air pollution that may operating the control technology FOR FURTHER INFORMATION CONTACT: For reasonably be anticipated to endanger required by the standards. In the NSPS Subparts K and Kb: Everett public health or welfare. Therefore, absence of the recordkeeping Bishop of the Manufacturing Energy, NSPS have been promulgated for this requirements, the standards could be and Transportation Division (mail code source category. enforced only through continuous 2223A), telephone (202) 564–7032, The control of VOC emissions from onsite inspection by regulatory agency facsimile (202) 564–0050 or e-mail petroleum storage vessels requires personnel. Consequently, not collecting Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63841 the information results in (1) greatly calculated on the basis of $14.50 per maintenance of that equipment. VOC increased resource requirements for hour, plus 110 percent overhead. emissions are the result of evaporation enforcement agencies or (2) the inability Burden means the total time, effort, or of volatile organic liquids contained in to enforce the standards. financial resources expended by persons the vessels. These standards rely on the NSPS Subpart K required notification to generate, maintain, retain, or disclose enclosure of the tanks by fixed or to the Agency of any affected facility. or provide information to or for a floating roofs, or a vapor recovery Afterwards, the only requirements were Federal agency. This estimate includes system or equivalent control device. to install appropriate equipment, a the time needed to review instructions; In order to ensure compliance with floating roof, vapor recovery system or develop, acquire, install, and utilize these standards, adequate recordkeeping their equivalents and then to maintain technology and systems for the purposes is necessary. In the absence of such the following information, record of the of collecting, validating, and verifying information, enforcement personnel petroleum liquid stored, maximum true information, processing and would be unable to determine whether vapor pressure of the liquid stored and maintaining information, and disclosing the standards are being met on a the storage period for each petroleum and providing information; adjust the continuous basis, as required by the liquid. existing ways to comply with any Clean Air Act. Generally, this Any information submitted to the previously applicable instructions and information will be readily available Agency for which a claim of requirements; train personnel to be able because it is needed for plant records. confidentiality is made will be to respond to a collection of As a result, there should be no safeguarded according to the Agency information; search data sources; additional burden from these policies set forth in Title 40, Chapter 1, complete and review the collection of requirements. Part 2, Subpart B—Confidentiality of information; and transmit or otherwise The format of the rule is that of an Business Information (see 40 CFR 2; 41 disclose the information. equipment standard. A performance test FR 36902, September 1, 1976; amended is not required because conducting a NSPS Subpart Kb: Volatile Organic performance test is not feasible for by 43 FR 40000, September 8, 1978; 43 Liquid Storage Vessels Supplementary FR 42251, September 20, 1978; 44 FR floating roofs. Floating roofs are subject Information to visual inspections and periodic 1764, March 23, 1979). Affected entities: Entities potentially measurements. Flares must meet the An agency may not conduct or affected by this action are those which General Provisions at section 60.18(f). sponsor, and a person is not required to maintain volatile organic liquid (VOL) An alternative means of limiting respond to, a collection of information storage vessels, including petroleum emissions is permitted if it can meet the unless it displays a currently valid OMB storage vessels, which have a storage emissions limitations required in control number. The OMB control capacity greater than or equal to 40 § 60.112b. For the equipment to be numbers for EPA’s regulations are listed cubic meters that commenced permitted, a person or company must in 40 CFR Part 9 and 48 CFR Chapter construction, reconstruction or notify the Administrator who must then 15. modification after July 23, 1984. publish the information in the Federal The EPA would like to solicit Exemptions to Subpart Kb are for Register and hold a public hearing. The comments to: vessels at coke oven by-product plants, submittal of information must include (i) evaluate whether the proposed pressure vessels designed to operate in an actual emissions test that uses a full- collection of information is necessary excess of 204.9 kPa and without size or scale model storage vessel that for the proper performance of the emissions to the atmosphere, vessels accurately collects all VOC emissions functions of the agency, including permanently attached to mobile from a given control device and that whether the information will have vehicles, vessels with a design capacity accurately simulates wind and accounts practical utility; less than or equal to 1,589.874 m3 used for other emission variables such as (ii) evaluate the accuracy of the for petroleum or condensate stored, temperature and barometric pressure. agency’s estimate of the burden of the processed, or treated prior to custody Also, the submittal must include an proposed collection of information, transfer, vessels located at bulk gasoline engineering evaluation that the including the validity of the storage plants, storage vessels located at Administrator determines is an accurate methodology and assumptions used; gasoline service stations and vessels method of determining equivalence. (iii) enhance the quality, utility, and used to store beverage alcohol. (60.114b). clarity of the information to be Title: The New Source Performance Owners or operators of tanks collected; and Standards (NSPS) for Volatile Organic equipped with a fixed roof and internal (iv) minimize the burden of the Liquid Storage Vessels at 40 CFR Part floating roof (IFR) shall perform visual collection of information on those who 60, Subpart Kb, OMB Control Number inspections of the roof and seals prior to are to respond, including through the 2060–0074, expiring on June 3, 1997. filling the vessel with VOL and at least use of appropriate automated electronic, Abstract: The ICR contains reporting, once every 12 months thereafter. As an mechanical, or other technological recording, and recordkeeping alternative to annual inspections, collection techniques or other forms of requirements under 40 CFR Part 60, double-sealed systems may be visually information technology, e.g., permitting Subpart Kb, that apply to VOL Storage inspected internally every 5 years and electronic submission of responses. Vessels. In the Administrator’s each time the vessel is emptied and Burden Statement: It is estimated that judgment, VOC emissions from VOL degassed. An internal inspection, in 150 Respondents are affected by Subpart storage vessels cause or contribute to air which the tank is emptied and degassed, K. The estimated reporting burden is 2.5 pollution that may reasonably be is required at least every 10 years. hours/respondent/year for anticipated to endanger public health or Owners or operators of tanks recordkeeping. The frequency for welfare. Therefore, NSPS have been equipped with an external floating roof collecting this information depends on promulgated for this source category. (EFR) shall perform seal gap the number of times in a year the The control of emissions of VOC from measurements of the gap area and petroleum storage tank is emptied and storage vessels requires not only the maximum gap width between the refilled. The estimate for this is once a installation of properly designed primary seal and the wall of the storage year. Respondent costs generally can be equipment, but also the operation and vessel (within 60 days of the initial fill 63842 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices and at least every 5 years thereafter) and where the vapor pressure of the respond to, a collection of information between the secondary seal and the wall anticipated liquid composition is above unless it displays a currently valid OMB of the storage vessel (initially and at the cutoff for monitoring, but below the control number. The OMB control least once per year thereafter). They cutoff for control requirements. numbers for EPA’s regulations are listed shall perform visual inspections of the The owner or operator shall keep in 40 CFR Part 9 and 48 CFR Chapter roof, seals and fittings each time the copies of all reports and records 15. vessel is emptied and degassed. resulting from inspections for at least 2 The EPA would like to solicit Owners or operators of vessels years. Owners or operators of vessels comments to: equipped with closed vent systems are equipped with an IFR or EFR are (i) evaluate whether the proposed required to submit, for the required to submit a report describing collection of information is necessary Administrator’s approval, an operating the control equipment and certify that for the proper performance of the plan describing system design, the control equipment meets the functions of the agency, including operation, and maintenance specifications of the regulation. Owners whether the information will have specifications, and an inspection plan or operators of external floating roof practical utility; for the system. In the event the owner (EFR) vessels shall submit a seal gap (ii) evaluate the accuracy of the or operator has installed a flare, a report measurement reports for the primary agency’s estimate of the burden of the showing compliance with visible seal and the secondary seal. Additional proposed collection of information, emission General Provisions shall be reports are required only in the event including the validity of the furnished to the Administrator. the vessel is determined to be out of methodology and assumptions used; Initial notifications are required by compliance with the standards. These (iii) enhance the quality, utility, and the General Provisions at 40 CFR section reports shall identify the vessel, the clarity of the information to be 60.7. These initial reports include nature of the defects, and the date that collected; and notification of construction or the vessel was emptied or repaired. (iv) minimize the burden of the modification, reconstruction, startup, Reports are required for periods when a collection of information on those who shutdown, or malfunction. Subpart Kb pilot light is absent from a flare. are to respond, including through the includes notifications when a tank is Information generated by use of appropriate automated electronic, filled or refilled and prior to seal gap notifications, recordkeeping, and mechanical, or other technological measurements. reporting requirements is used by the collection techniques or other forms of The owner or operator of each storage Agency to ensure that facilities affected information technology, e.g., permitting vessel that is equal to or greater than 40 by the NSPS continue to operate the electronic submission of responses. m3 (10,000 gal) in capacity shall, for the control equipment used to achieve Burden Statement: Based upon the life of the source, keep readily compliance. Notification of construction last ICR, there were 857 respondents accessible records showing the and startup indicates to enforcement with 10,455 storage vessels affected by dimension of the vessel and an analysis personnel when a new affected facility this Subpart. The estimated burden is: showing the capacity of the storage has been constructed and therefore is One time notification or start up burden vessel. subject to the standards. If the is 47 hours/year/respondent; repeat Records shall be kept for at least 2 information were not collected, the requirements (seal and gap years of the type of VOL stored, the Agency would have no means for measurements) burden is 23 hours/year/ period of storage, and the maximum ensuring that compliance with the NSPS respondent; recordkeeping requirements true vapor pressure of that VOL during is achieved and maintained by the new, burden is estimated at 104 hours/ the respective storage period for each modified, or reconstructed sources respondent/year. Respondent costs storage vessel with: (1) a design capacity subject to the regulation. Under these generally can be calculated on the basis greater than or equal to 151 m3 (40,000 circumstances, an owner or operator of $14.50 per hour, plus 110 percent gal) storing a liquid with a maximum could elect to reduce operating expenses overhead. true vapor pressure greater than or equal by not installing, maintaining, or Burden means the total time, effort, or to 1.75 kPa (0.25 psia) or (2) a design otherwise operating the control financial resources expended by persons capacity greater than or equal to 75 m3 technology required by the standards. In to generate, maintain, retain, or disclose (20,000 gal) but less than 151 m3 the absence of the recordkeeping or provide information to or for a (40,000 gal) storing a liquid with a requirements, the standards could be Federal agency. These estimates include maximum true vapor pressure greater enforced only through continuous the time needed to review instructions; than or equal to 15.0 kPa (2.2 psia). In onsite inspection by regulatory agency develop, acquire, install, and utilize cases where vessels meet the criteria for personnel. Consequently, not collecting technology and systems for the purposes size cut-offs but are typically below the the information results in (1) greatly of collecting, validating, and verifying vapor pressure cut-offs, the owner or increased resource requirements for information, processing and operator shall notify the Administrator enforcement agencies or (2) the inability maintaining information, and disclosing when the maximum true vapor pressure to enforce the standards. and providing information; adjust the of the liquid exceeds the respective Any information submitted to the existing ways to comply with any maximum true vapor pressure values for Agency for which a claim of previously applicable instructions and each volume range. Owners or operators confidentiality is made will be requirements; train personnel to be able of each vessel equipped with a closed- safeguarded according to the Agency to respond to a collection of vent system and 95 percent effective policies set forth in Title 40, Chapter 1, information; search data sources; control device are exempt from these Part 2, Subpart B—Confidentiality of complete and review the collection of requirements. Records must be kept of Business Information (see 40 CFR 2; 41 information; and transmit or otherwise inspections and seal gap measurements. FR 36902, September 1, 1976; amended disclose the information. Owners or operators of each vessel by 43 FR 40000, September 8, 1978; 43 storing a waste mixture of indeterminate FR 42251, September 20, 1978; 44 FR NSPS Subpart S: Primary Aluminum or variable composition shall conduct 1764, March 23, 1979). Supplementary Information semiannual physical testing for An agency may not conduct or Affected entities: Entities potentially maximum true vapor pressure in cases sponsor, and a person is not required to affected by this action are primary Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63843 aluminum reduction plants that information deemed not to be private. and providing information; adjust the commenced construction, modification, However, any information submitted to existing ways to comply with any or reconstruction after the date of the Agency for which a claim of previously applicable instructions and proposal. The specific units to which confidentiality is made will be requirements; train personnel to be able this subpart applies are potroom groups safeguarded according to the Agency to respond to a collection of and anode bake plants. policies set forth in Title 40, Chapter 1, information; search data sources; Title: New Source Performance Part 2, Subpart B—Confidentiality of complete and review the collection of Standards (NSPS) for Primary Business Information (see 40 CFR 2; 41 information; and transmit or otherwise Aluminum Reduction Plants at 40 CFR FR 36902, September 1, 1976; amended disclose the information. Part 60, Subpart S, OMB Control by 43 FR 40000, September 8, 1978; 43 NSPS Subparts T, U, V, W, X: Number 2060–0031, expiring July 31, FR 42251, September 20, 1978; 44 FR Phosphate Fertilizer Supplementary 1997. 1764, March 23, 1979). Abstract: Primary aluminum An agency may not conduct or Information processing activities result in emissions sponsor, and a person is not required to Affected entities: This action affects of gaseous hydrogen fluoride and respond to, a collection of information entities which operate wet-process particulate fluorides, alumina, carbon unless it displays a currently valid OMB phosphoric acid plants, super monoxide, volatile organic compounds control number. The OMB control phosphoric acid plants, granular and sulfur dioxide. In the numbers for EPA’s regulations are listed diammonium phosphate plants, and Administrator’s judgment, emissions in 40 CFR Part 9 and 48 CFR Chapter triple superphosphate plants. This from these sources are in sufficient 15. action also affects entities which operate quantity to cause or contribute to air The EPA would like to solicit granular triple superphosphate storage pollution that may endanger public comments to: facilities. health or welfare. Consequently, New (i) evaluate whether the proposed Title: New source Performance Source Performance Standards were collection of information is necessary Standards (NSPS) for the Phosphate promulgated for this source category. for the proper performance of the Fertilizer Industry at 40 CFR Part 60, These standards establish limits for both functions of the agency, including Subparts T, U, V, W, X, OMB Control total fluoride emissions and visible whether the information will have Number 2060.0037, expiring June 30, emissions, and rely on the proper practical utility; 1997. installation, operation and maintenance (ii) evaluate the accuracy of the Abstract: The NSPS for the Phosphate of particulate control devices such as agency’s estimate of the burden of the Fertilizer Industry were proposed in electrostatic precipitators or scrubbers. proposed collection of information, October 22, 1974, and promulgated on Typically, primary aluminum plants are including the validity of the August 6, 1975. These standards apply components of larger facilities that methodology and assumptions used; to each wet-process phosphoric acid produce a variety of finished products. (iii) enhance the quality, utility, and plant, each super phosphoric acid plant, The primary aluminum source category, clarity of the information to be each granular diammonium phosphate however, does not include holding collected; and plant, and each triple superphosphate furnaces, casting, or refining processes (iv) minimize the burden of the plant, having a design capacity of more which are generally considered under collection of information on those who than 15 tons of equivalent phosphorous the category of secondary aluminum. are to respond, including through the pentoxide (P2O5) feed per calendar day. In order to ensure compliance with use of appropriate automated electronic, These standards also apply to granular the standards, adequate recordkeeping mechanical, or other technological triple superphosphate storage facilities. and reporting is necessary. This collection techniques or other forms of Specific affected facilities for each information enables the Agency to: (1) information technology, e.g., permitting subpart are found at 40 CFR. 60.200, identify the sources subject to the electronic submission of responses. 60.210, 60.220, 60.230 and 60.240. standard; (2) ensure initial compliance Burden Statement: The average Phosphate fertilizer plant and with emission limits; and (3) verify annual burden to the industry over the phosphate bearing feed owner operators continuous compliance with the next three years from these of phosphate fertilizer plants must standard. Specifically, the rule requires recordkeeping and reporting notify EPA of construction, an application for approval of requirements is estimated at 874 person- modification, start-ups, shutdowns, construction, notification of startup, hours. This is based on an estimated 7 malfunctions, and dates and results of notification and report of the initial respondents, with no new plants or the initial performance test. Owner/ emissions test, and notification of any potlines expected to be constructed in operators must install, calibrate, and physical or operational change that may the next three years. The average annual maintain monitoring devices to increase the emission rate. In addition, burden for reporting only is projected to continuously measure/record pressure sources are required to keep records of be 296 person-hours. Respondent costs drop across scrubbers. all startups, shutdowns, and generally can be calculated on the basis Recordkeeping shall consist of: the malfunctions. of $14.50 per hour, plus 110 percent occurrence and duration of all startups In the absence of such information overhead. and malfunctions as described; initial collection requirements, enforcement Burden means the total time, effort, or performance tests results; amount of personnel would be unable to determine financial resources expended by persons phosphate feed material; equivalent whether the standards are being met on to generate, maintain, retain, or disclose calculated amounts of P2O5, and a continuous basis, as required by the or provide information to or for a pressure drops across scrubber system. Clean Air Act. Consequently, these Federal agency. This estimate includes Startups, shutdowns and malfunctions information collection requirements are the time needed to review instructions; must be recorded as they occur. mandatory, and the records required by develop, acquire, install, and utilize Performance test records must contain this NSPS must be retained by the technology and systems for the purposes information necessary to determine owner or operator for two years. In of collecting, validating, and verifying conditions of performance test and general, the required information information, processing and performance test measurements. consists of emissions data and other maintaining information, and disclosing Equivalent P2O5 stored or amount of 63844 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices feed must be recorded daily. The CMS requested so no reporting burden is to ensure that the best demonstrated shall record pressure drop across anticipated. technology (BDT) is being used to scrubbers continuously and The average total annual reduce emissions from wood heaters, (2) automatically. recordkeeping burden associated with to ensure that the wood heater tested for Reporting shall include: initial this ICR is 962.5 hours. This figure certification purposes is in compliance notifications listed and initial reflects a per-respondent burden of 87.5 with the applicable emission standards, performance test results. hours, with a total of 11 respondents (3) to provide evidence that production- The EPA is charged under Section 111 representing the industry. These figures line wood heaters have emission of the Clean Air Act, as amended, to are unchanged from the current ICR. performance characteristics similar to establish standards of performance for The per-respondent annual burden tested models and (4) to provide new stationary sources. These standards consists of 0.25 hours per (daily) assurance of continued compliance. must reflect application of the best occurrence of time to enter information, Manufacturers submit a notification to technological system of continuous times 350 operation days per year (as the Agency stating the dates of emissions reductions. Such reductions specified in the NSPS review certification testing, perform the should take into consideration the cost document). All other burdens associated certification testing at an accredited of achieving emission reduction, or any with recordkeeping under this ICR, laboratory, supply detailed component non-air quality health and including time necessary to read drawings including manufacturing environmental impact and energy instructions, plan activities, and tolerances to the Agency, reapply for requirements. implement activities, are assumed to be certification every five years, seal/store Any information submitted to the included in the burden associated with each tested model, and maintain all Agency for which a claim of startup of new facilities and not necessary certification test records. confidentiality is made will be included in the annual recordkeeping. For each certified model line, safeguarded according to the Agency The numbers were derived from manufacturers are required: (1) to policies set forth in Title 40, Chapter 1, standard estimates based on the EPA’s submit biennially, a statement certifying Part 2, Subpart B—Confidentiality of experience with other standards. that no material or dimensional changes have been made to the model line that Business Information (see 40 CFR 2; 41 Respondent costs generally can be affects emission performance; (2) to affix FR 36902, September 1, 1976; amended calculated on the basis of $14.50 per both permanent and temporary labels to by 43 FR 40000, September 8, 1978; 43 hour, plus 110 percent overhead. each new wood heater manufactured; FR 42251, September 20, 1978; 44 FR Burden means the total time, effort, or (3) to disclose, to the consumer, 1764, March 23, 1979). financial resources expended by persons instructions for operation and An agency may not conduct or to generate, maintain, retain, or disclose maintenance of the wood heater; (4) to sponsor, and a person is not required to or provide information to or for a Federal agency. This estimate includes notify the Agency that a quality respond to, a collection of information assurance emission test will be unless it displays a currently valid OMB the time needed to review instructions; develop, acquire, install, and utilize conducted within one week of the control number. The OMB control mailing; (5) to maintain, for each model numbers for EPA’s regulations are listed technology and systems for the purposes of collecting, validating, and verifying line, records of certification test reports in 40 CFR Part 9 and 48 CFR Chapter including raw field, laboratory, and 15. information, processing and maintaining information, and disclosing instrument calibration data; and (6) to The EPA would like to solicit and providing information; adjust the perform and document quality comments to: existing ways to comply with any assurance parameter inspections (i) evaluate whether the proposed previously applicable instructions and conducted on assembly-line wood collection of information is necessary requirements; train personnel to be able heaters; (7) to perform and document for the proper performance of the to respond to a collection of emission audit tests performed on functions of the agency, including information; search data sources; assembly-line wood heaters; (8) to whether the information will have complete and review the collection of maintain records of the quantity and practical utility; information; and transmit or otherwise model type of wood heaters produced (ii) evaluate the accuracy of the disclose the information. and sold; (9) to maintain records and agency’s estimate of the burden of the storage locations of all wood heaters proposed collection of information, NSPS Subpart AAA: New Residential exempt from certification requirements; including the validity of the Wood Heaters Supplementary and (10) to retain for the life of the methodology and assumptions used; Information model line wood heater units tested for (iii) enhance the quality, utility, and Affected entities: Entities potentially certification purposes. clarity of the information to be affected by this action are those which Emission testing laboratories seeking collected; and manufacture or sell new residential accreditation are required: (1) to apply (iv) minimize the burden of the wood heaters. to the Agency for accreditation before collection of information on those who Title: Standards of Performance for conducting certification tests; (2) pass a are to respond, including through the New Stationary Sources; New standardized proficiency test; and (3) use of appropriate automated electronic, Residential Wood Heaters at 40 CFR 60, notify the Agency prior conducting the mechanical, or other technological Subpart AAA, Sections 60.530 through required test. collection techniques or other forms of 60.539(b), OMB Control Number 2060– The regulation requires currently information technology, e.g., permitting 0161, expiring August 31, 1997. accredited laboratories: (1) to participate electronic submission of responses. Abstract: Information is supplied to in proficiency test programs on an Burden Statement: The reporting the Agency under the applicable rule by annual basis, (2) to report within ten burden for this requirement is limited to emission testing laboratories, days the results of random compliance initial notifications and reports of manufacturers and commercial owners audits in the form of a preliminary test performance test results. No new (e.g., distributors, retailers). report, (3) to report to the Agency the sources are anticipated to occur during The information supplied by failure of any manufacturer to submit a the period for which renewal is manufacturers to the Agency is used: (1) wood heater for testing, (4) to report any Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63845 interruptions or postponements in the dollar-cost figure. In this ICR, both hours per week maintaining emission testing schedule and advise the Agency burden hours and dollar-cost figures test records. of the new testing date; (5) to retain all will be assigned to each regulatory For retailers, records of wood heaters certification test records and burden. previously owned by noncommercial documentation; and (6) to retain all Based on the previous ICR, approved owners are required to be maintained certification test records and associated for use through August 31, 1996, the for 5 years. It is estimated that 875 documentation. total annual burden to regulated entities retailers will create such records, 4 Commercial owners are required to is 8,775 hours with a total dollar-cost of times a year at an expense of 0.100 hour maintain records of previous owners of $1,349,673.38. The burden to per record. wood heaters to enable the Agency to manufacturers is 6,861 hours and Burden means the total time, effort, or confirm whether the stove should be $1,291,423.00. The burden to testing financial resources expended by persons categorized as a used stove or an laboratories is 1,564 hours and to generate, maintain, retain, or disclose affected facility. $47,654.25, and the burden to retailers or provide information to or for a Most recordkeeping and reporting is 350 hours and $10,657.25. Federal agency. The above burden provisions of the rule consists of For manufacturers, the following estimate(s) includes the time needed to emissions-related data and other hourly burden and cost estimates are review instructions; develop, acquire, information not considered confidential. used in the current ICR. A total of 50 install, and utilize technology and Any information submitted to the manufacturers testing 1.33 wood heaters systems for the purposes of collecting, Agency for which a claim of per year, at a cost of 2 hours per wood validating, and verifying information, confidentiality is made will be heater with payment of $5,000 in fees to processing and maintaining the testing laboratory. Applications, safeguarded according to the Agency information, and disclosing and taking 8 hours each to prepare, are policies set forth in Title 40, Chapter 1, providing information; adjust the submitted at the rate of 1.33 per year. Part 2, Subpart B—Confidentiality of existing ways to comply with any Biennial reporting occurs 0.50 times per Business Information (see 40 CFR 2; 41 previously applicable instructions and year, at a cost of 2 hours per report. It FR 36902, September 1, 1976; amended requirements; train personnel to be able is estimated that manufacturers, on an by 43 FR 40000, September 8, 1978; 43 to respond to a collection of annual basis, attach to production-line FR 42251, September 20, 1978; 44 FR information; search data sources; wood heaters, 4,000 permanent and 1764, March 23, 1979). complete and review the collection of 4,000 temporary labels per year at a cost An agency may not conduct or information; and transmit or otherwise of $2 per permanent label, and $0.75 sponsor, and a person is not required to disclose the information. respond to, a collection of information and 0.0083 hours per temporary label. It unless it displays a currently valid OMB is also estimated that manufacturers NESHAP Subparts F, G, H, and I, the control number. The OMB control create one owner’s manual per year, Hazardous Organic NESHAP (HON) numbers for the Agency’s regulations taking 20 hours to prepare, perform Supplementary Information are listed in 40 CFR Part 9 and 48 CFR quality assurance testing 0.80 times per year at a cost of $5,000 per wood heater Affected Entities: Entities potentially Chapter 15. affected by this action are those which The agency would like to solicit and that it takes 2 hours to prepare the are subject to the HON with the comments to: notification to the Agency. Emission test (i) evaluate whether the proposed documentation is estimated to take 1 exceptions listed in 40 CFR 63.100(f). collection of information is necessary hour for each tested wood heater. Title: NESHAP Subparts F, G, H, and for the proper performance of the Recordkeeping for research and I, the Hazardous Organic NESHAP functions of the agency, including development wood heaters is expected (HON), OMB number 2060–0282, whether the information will have to take place once per year and take 2 expiring May 31, 1997. practical utility; hours to prepare. Eight hours of Abstract: This ICR contains (ii) evaluate the accuracy of the recordkeeping is estimated for each recordkeeping and reporting agency’s estimate of the burden of the stove used in certification testing that is requirements that are mandatory for proposed collection of information, subsequently sealed and stored by the compliance with 40 CFR part 63.100, including the validity of the manufacturer. 63.110, 63.160, and 63.190; subparts F, methodology and assumptions used; For emission testing laboratories, the G, H, and I, respectively, for hazardous (iii) enhance the quality, utility, and following hourly burden and cost air pollutant emissions from process clarity of the information to be estimates are used in the current ICR. It vents, storage vessels, transfer racks, collected; and is estimated that 1 new testing wastewater and equipment leaks. This (iv) minimize the burden of the laboratory will apply for certification information is used by the Agency to collection of information on those who each year and that preparation of the identify sources subject to the standards are to respond, including through the application for certification will take 40 and to insure that the maximum use of appropriate automated electronic, hours. The notice for initial proficiency achievable control is being properly mechanical, or other technological testing for this laboratory will take 1 applied. The standards require periodic collection techniques or other forms of hour to prepare and the required initial recordkeeping to document process information technology, e.g., permitting proficiency test will take 135 hours to information relating to the source’s electronic submission of responses. complete. For accredited testing ability to comply with the standards. Burden Statement: Previous ICRs laboratories, an annual demonstration of Respondents are owners or operators of used a combination of burden hours continuing proficiency is required and processes in SOCMI industries, styrene- and/or dollar-cost figures. In these ICRs, is estimated to take 135 hours. butadiene rubber production, burden hours were converted to dollar- Rescheduling of proficiency tests are polybutadiene production, chloride cost figures using an average salary estimated to occur twice per year for production, pesticide production, multiplier ($14.50 per hour plus 110 each laboratory and take 2 hours to chlorinated hydrocarbon use in percent overhead) times the number of prepare the required notice to the production of chemicals, burden hours. The dollar-cost figures Agency. It is estimated that currently pharmaceutical production, and were then added to compute the overall certified test laboratories will spend 4 miscellaneous butadiene use. 63846 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Section 112 of the Clean Air Act, as parameter values for an emission point whether the information will have amended in 1990, requires that EPA are outside the established range for practical utility; establish standards to limit emissions of more than 1 percent of the operating (ii) evaluate the accuracy of the hazardous air pollutants (HAP’s) from time in a reporting period, or the Agency’s estimate of the burden of the stationary sources. The sources subject monitoring system is out of service for proposed collection of information, to the proposed rule can potentially more than 5 percent of the time, the including the validity of the emit 149 of the 189 HAP’s listed in regulatory authority may request that methodology and assumptions used; Section 112. In the Administrator’s the owner or operator submit quarterly (iii) enhance the quality, utility, and judgment, hazardous air pollutant reports for that emission point. After 1 clarity or the information to be (HAP) emissions in the synthetic year, semiannual reporting can be collected; and organic chemical industry and other resumed, unless the regulatory authority (iv) minimize the burden of the negotiated industries cause or requests continuation of quarterly collection of information on those who contribute to air pollution that may reports. are to respond, including through the reasonably be anticipated to endanger Other reports would be submitted as use of appropriate automated electronic, public health or welfare. Therefore, required by the provisions for each kind mechanical, or other technological NESHAPs have been promulgated for of emission point. The due date for collection techniques or other forms of this source category as required under these kinds of reports is tied to the event information technology, e.g., permitting section 112 of the Clean Air Act. that precipitated the report itself. electronic submission of responses. Generally, respondents are required Examples of these special reports The EPA specifically would like by law to submit one time reports of include requests for extensions of comments on the following: (i) the start of construction, anticipated and repair, notification of scheduled estimated percentage of respondents actual start-up dates, and physical or inspections for storage vessel and filing electronically; (ii) the estimated operational changes to existing wastewater management units, process percentage of respondents contracting facilities. In addition, Subpart G changes, and startup, shutdown, and out the leak detection and repair (LDAR) requires respondents to submit five malfunctions. portion; (iii) an estimate of the annual types of reports: (1) Initial Notification, Subparts H and I, the equipment leak cost of contracting out the LDAR (2) Implementation Plan (note: on standards, would require the submittal program; and (iv) the model plant August 26, 1996, EPA proposed to of an initial report and semiannual scenario, which consists of: 20 eliminate the need for an reports of leak detection and repair parameters to monitor at control devices Implementation Plan. No adverse experiences and any changes to the throughout facility; 10 affected storage comments were received and EPA plans processes, monitoring frequency and/or tanks of various capacities; 3 affected to go final with that notice in initiation of a quality improvement major wastewater streams; 4 affected December), (3) Notification of program. For new sources, the initial transfer rack operations; 1 overall LDAR Compliance Status, (4) Periodic Reports, report shall be submitted with the program for 2000 components; and 1 and (5) several event triggered reports. application for construction, as under facility wide inventory of emission The Initial Notification report identifies Subpart G. Every 6 months after the points, Group 1 and Group 2. sources subject to the rule and the initial report, a report must be Burden Statement: The Agency provisions which apply to these submitted that summarizes the computed the burden for each of the sources. The Notification of Compliance monitoring results from the leak recordkeeping and reporting Status is submitted to provide the detection and repair program and requirements applicable to the industry information necessary to demonstrate provides a notification of initiation of for the currently approved ICR. Where that compliance has been achieved. The monthly monitoring or implementation appropriate, the Agency identified Periodic Reports provide the parameter of a quality improvement program, if specific tasks and made assumptions, monitoring data for the control devices, applicable. while being consistent with the concept results of any performance tests Any information submitted to the of burden under the Paper Work conducted during the period, and Agency for which a claim of Reduction Act. information on instances where confidentiality is made will be The estimate was based on the inspections revealed problems. Subparts safeguarded according to the Agency assumption that there would be 18 new H and I require the source to submit an policies set forth in Title 40, Chapter 1, affected facilities each year and that initial report detailing the equipment Part 2, Subpart B—Confidentiality of there would be 389 existing sources and process units subject to, and Business Information (see 40 CFR 2; 41 over each of the next three years schedule for implementing each phase FR 36902, September 1, 1976; amended covered by the ICR. For the new of, the standard. Owners and operators by 43 FR 40000, September 8, 1978; 43 sources, it was estimated that it would also have to submit semiannual reports FR 42251, September 20, 1978; 44 FR take 250 person hours to read the of the monitoring results from the leak 1764, March 23, 1979). instructions, 355 person hours to plan detection and repair program in the An agency may not conduct or activities, 132 person hours for training, equipment leak standard. All records sponsor, and a person is not required to 4266 person hours for performance are to be maintained by the source for respond to, a collection of information testing, 2943 person hours to gather a period of at least 5 years. The Initial unless it displays a currently valid OMB information, monitor and inspect, 40 Notification is due 180 days before control number. The OMB control person hours to process, compile and commencement of construction or numbers for EPA’s regulations are listed review, 557 person hours to complete reconstruction for new sources. in 40 CFR Part 9 and 48 CFR Chapter reports, 489 person hours to record and The Notification of Compliance Status 15. disclose information, and 264 person would be submitted 150 days after the The EPA would like to solicit hours to store and file reports. For source’s compliance date for both new comments to: existing sources, it was estimated that it and existing sources. (i) evaluate whether the proposed would take 83 person hours to read the Generally, Periodic Reports would be collection of information is necessary instructions, 79 person hours to plan submitted semiannually. However, if for the proper performance of the activities, 21 person hours for training, monitoring results show that the functions of the Agency, including 1767 person hours for performance Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63847 testing, 1693 person hours to gather Safeway. Copies of the documents being EQUAL EMPLOYMENT OPPORTUNITY information, monitor and inspect, 20 reviewed will be available for the public COMMISSION person hours to process, compile and at the time of the meeting in the review, 406 person hours to complete Conference Room. During this Agency Information Collection reports, 454 person hours to record and teleconference, the Committee will Activities: Submission for OMB Review disclose information, and 237 person review the following draft reports from AGENCY: Equal Employment hours to store and file reports. two of its Standing Committees: The annual burden to industry for the Opportunity Commission. 1. Review of Ecological Risk Assessment ACTION: Notice of extension request—no three year period covered by this ICR Guidelines from recordkeeping and reporting change. requirements has been estimated at —Ecological Processes and Effects Committee (EPEC). SUMMARY: In accordance with the 2,321,399 hours. The respondents costs Paperwork Reduction Act agencies are were calculated on a basis of $33/hr 2. Review of Thyroid Cancer Policy document required to submit proposed technical; $49/hr managerial, and $15/ information collection requests to OMB clerical; with a split of 0.05 managerial —Environmental Health Committee (EHC). for review and approval, and to publish hours per technical hour and 0.10 a notice in the Federal Register clerical hours per technical hour. The A limited number of telephone lines notifying the public that the agency has total annual burden to industry is will be available for use by members of made such a submission. The EEOC has estimated at $74,587,566. the public. requested an extension of an existing Burden means the total time, effort, or collection as listed below. financial resources expended by persons FOR FURTHER INFORMATION—Members to generate, maintain, retain, or disclose of the public desiring additional ADDRESS: The Request for Clearance (SF or provide information to or for a information concerning the 831), supporting statement, and other Federal agency. This estimate includes teleconference or who wish to submit documents submitted to OMB for the time needed to review instructions; comments should contact Dr. Donald G. review may be obtained from: Margaret develop, acquire, install, and use Barnes, Designated Federal Officer for Ulmer Holmes, EEOC Clearance Officer, technology and systems for the purposes the Executive Committee, Science 1801 L Street, NW, Room 2928, of collecting, validating, and verifying Advisory Board (1400), U.S. EPA, 401 M Washington, DC 20507. information, processing and Street, SW, Washington, DC 20460; by FOR FURTHER INFORMATION CONTACT: maintaining information, and disclosing telephone at (202) 260–4126; by fax at Joachim Neckere, Director, Program and providing information; adjust the (202) 260–9232 or via the INTERNET at: Research and Surveys Division, Equal existing ways to comply with any [email protected]. After Employment Opportunity Commission, previously applicable instructions and December 1, 1996, copies of the draft 1801 L Street, NW, Room 9222, requirements; train personnel to be able meeting agenda and draft reports will be Washington, DC 20507, (202) 663–4958 to respond to a collection of available from Ms. Priscilla Tillery- (voice) or (202) 663–7063 (TDD). information; search data sources; Gadson at the above telephone and fax SUPPLEMENTARY INFORMATION: complete and review the collection of numbers, and by INTERNET at: tillery- information; and transmit or otherwise [email protected]. Information Type of Review: Extension—No disclose the information. No additional regarding how to access the Change. third party burden is associated with teleconference is available by contacting Collection Title: Equal Employment this ICR. Ms. Tillery-Gadson at the above Opportunity Local Union Report EEO– numbers. 3. Dated: November 22, 1996. Members of the public who wish to Form Number: EEOC Form 274. Bruce R. Weddle, make a brief oral presentation to the Frequency of Report: Biennial. Director, Office of Compliance. Committee must contact Dr. Barnes in Type of Respondent: Referral unions [FR Doc. 96–30609 Filed 11–29–96; 8:45 am] writing by letter, by fax, or by with 100 or more members. BILLING CODE 6560±50±P INTERNET (at INTERNET address Standard Industrial Classification above) no later than 12 noon (Eastern (SIC) Code: 863. Description of Affected Public: Labor [FRL±5657±3] Standard Time) Tuesday, December 10, 1996, in order to be included on the unions and similar labor organizations. Science Advisory Board Executive Agenda. The request should identify the Responses: 3,000 Committee; Notification of Public name of the individual who will make Reporting Hours: 4,500 Advisory Committee Meeting the presentation and an outline of the Federal Cost: $43,500.00. issues to be addressed. Since the EC will Number of Forms: 1 Pursuant to the Federal Advisory be reviewing reports already approved Abstract: Section 709(c) of Title VII of Committee Act, Public Law 92–463, by Standing Committees of the Board, the Civil Rights Act of 1964, as notice is hereby given that the Executive oral comments will be limited to three amended, 42 U.S.C. 2000e–8(c), requires Committee (EC) of the Science Advisory minutes per speaker and no more than employers to make and keep records Board (SAB) will hold a public fifteen minutes total. Comments should relevant to a determination of whether teleconference on Tuesday, December focus on matters of the clarity of the unlawful employment practices have 17, 1996, from 3:00 p.m. to 4:00 p.m. report and the completeness of been or are being committed and to (Eastern Standard Time). The responding to the charge, which is make reports therefrom as required by teleconference will be hosted in the included in the report. the Commission. Pursuant to 29 C.F.R. SAB Conference Room 2103 of the Mall, § 1602.22, referral unions with 100 or U.S. Environmental Protection Agency Dated: November 22, 1996. more members are required to submit Headquarters Building at 401 M Street Donald G. Barnes, EEO–3 reports biennially. The EEO–3 SW, Washington, DC 20460. For easy Staff Director Science Advisory Board. data collection program has existed access, members of the public should [FR Doc. 96–30608 Filed 11–29–96; 8:45 am] since 1967. The individual reports are use the EPA entrance next to the BILLING CODE 6560±50±P confidential. 63848 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

EEO–3 data are used by the requirements for comments are found in A. Federal Reserve Bank of Kansas Commission to investigate charges of section 572.603 of Title 46 of the Code City (John E. Yorke, Senior Vice employment discrimination against of Federal Regulations. Interested President) 925 Grand Avenue, Kansas local referral unions. Pursuant to persons should consult this section City, Missouri 64198: Section 709(d) of Title VII, EEO–3 data before communicating with the 1. Lyle L. and Carolyn Fiene, both of are shared with 89 state and local fair Commission regarding a pending Reeds Spring, Missouri; to retain a total employment practices agencies, and agreement. of 36.84 percent of the voting shares of with other federal agencies. Agreement No.: 224–201005. Gardner Bancorp, Inc., Gardner, Kansas, Burden Statement: The respondent Title: Port of Oakland/Hyundai and thereby indirectly acquire First burden for this collection is minimal. Merchant Marine Co. Ltd. Terminal Use Kansas Bank and Trust Company, The estimated number of respondents Agreement. Gardner, Kansas. included in the EEO–3 survey is 3,000 Parties: Port of Oakland (‘‘Port’’), Board of Governors of the Federal Reserve local unions. The estimated number or Hyundai Merchant Marine Co. Ltd. System, November 25, 1996. responses per respondent is one EEO–3 (‘‘Hyundai’’). Jennifer J. Johnson, Synopsis: The proposed agreement report, taking an estimated one and one Deputy Secretary of the Board. half hours to complete. The total permits Hyundai the nonexclusive use of assigned premises at the Port’s [FR Doc. 96–30532 Filed 11–29–96; 8:45 am] number of burden hours therefore is BILLING CODE 6210±01±F estimated to be 4,500. Seventh Street Terminal for the This is an average burden estimate berthing, loading and discharge of vessels through August 31, 2001. and is based on a long history (since Formations of, Acquisitions by, and 1985) of identical reporting experience. Agreement No.: 224–201006. Title: Port of New Orleans/Ceres Gulf, Mergers of Bank Holding Companies The burden is dependent on the size of Inc. Terminal Lease Agreement. the local union and on the number of The companies listed in this notice Parties: Port of New Orleans Ceres have applied to the Board for approval, referrals made by the union during the Terminals, Inc. reporting period. Smaller unions may pursuant to the Bank Holding Company Synopsis: The proposed Agreement Act of 1956 (12 U.S.C. 1841 et seq.) well take under an hour to complete the replaces a former lease agreement report. Over the years, the Commission (BHC Act), Regulation Y (12 CFR Part between the parties under Agreement 225), and all other applicable statutes has reduced the reporting and record No. 224–010600–003. The terms of the keeping burden by eliminating all local and regulations to become a bank new Agreement are essentially the same holding company and/or to acquire the unions with fewer than 100 members, as the former agreement, and is filed to by requiring record keeping for a two assets or the ownership of, control of, or reflect the relocation of the Ceres the power to vote shares of a bank or month period only, by changing the data terminal. collection instrument, and by changing bank holding company and all of the banks and nonbanking companies the frequency of the data collection from By order of the Federal Maritime Commission. owned by the bank holding company, an annual to a biennial basis. Further including the companies listed below. reductions, such as filing by diskette or Dated: November 25, 1996. Ronald D. Murphy, The applications listed below, as well magnetic tape, have been less successful as other related filings required by the as local unions appear less likely to Assistant Secretary. [FR Doc. 96–30566 Filed 11–29–96; 8:45 am] Board, are available for immediate have computerized record keeping and inspection at the Federal Reserve Bank reporting capabilities. BILLING CODE 6730±01±M indicated. Once the application has Dated: November 26, 1996. been accepted for processing, it will also For the Commission. be available for inspection at the offices FEDERAL RESERVE SYSTEM Kassie A. Billingsley, of the Board of Governors. Interested Director, Financial and Resource Change in Bank Control Notices; persons may express their views in Management Service. Acquisitions of Shares of Banks or writing on the standards enumerated in [FR Doc. 96–30594 Filed 11–29–96; 8:45 am] Bank Holding Companies the BHC Act (12 U.S.C. 1842(c)). If the BILLING CODE 6750±01±M proposal also involves the acquisition of The notificants listed below have a nonbanking company, the review also applied under the Change in Bank includes whether the acquisition of the Control Act (12 U.S.C. 1817(j)) and § nonbanking company complies with the FEDERAL MARITIME COMMISSION 225.41 of the Board’s Regulation Y (12 standards in section 4 of the BHC Act, Notice of Agreement(s) Filed CFR 225.41) to acquire a bank or bank including whether the acquisition of the holding company. The factors that are nonbanking company can ‘‘reasonably The Federal Maritime Commission considered in acting on the notices are be expected to produce benefits to the hereby gives notice of the filing of the set forth in paragraph 7 of the Act (12 public, such as greater convenience, following agreement(s) pursuant to U.S.C. 1817(j)(7)). increased competition, or gains in section 5 of the Shipping Act of 1984. The notices are available for efficiency, that outweigh possible Interested parties may inspect and immediate inspection at the Federal adverse effects, such as undue obtain a copy of each agreement at the Reserve Bank indicated. Once the concentration of resources, decreased or Washington, D.C. Office of the Federal notices have been accepted for unfair competition, conflicts of Maritime Commission, 800 North processing, they will also be available interests, or unsound banking practices’’ Capitol Street, N.W., 9th Floor. for inspection at the offices of the Board (12 U.S.C. 1843). Any request for Interested parties may submit comments of Governors. Interested persons may a hearing must be accompanied by a on each agreement to the Secretary, express their views in writing to the statement of the reasons a written Federal Maritime Commission, Reserve Bank indicated for that notice presentation would not suffice in lieu of Washington, D.C. 20573, within 10 days or to the offices of the Board of a hearing, identifying specifically any after the date of the Federal Register in Governors. Comments must be received questions of fact that are in dispute, which this notice appears. The not later than December 13, 1996. summarizing the evidence that would Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63849 be presented at a hearing, and indicating SUMMARY: The Department of Health and Dated: November 22, 1996. how the party commenting would be Human Services (HHS) is providing Linda D. Meyers, aggrieved by approval of the proposal. notice of the seventh meeting of the Acting Deputy Director, Office of Disease Unless otherwise noted, nonbanking Commission on Dietary Supplement Prevention and Health Promotion, U.S. activities will be conducted throughout Labels. Department of Health and Human Services. the United States. [FR Doc. 96–30537 Filed 11–29–96; 8:45 am] DATES: The Commission intends to hold Unless otherwise noted, comments BILLING CODE 4160±17±M regarding each of these applications its meeting on December 16, 1996 from must be received at the Reserve Bank 9:00 a.m. to approximately 12:00 noon, indicated or the offices of the Board of E.S.T. in the Potomac Room, Sheraton Office of the Secretary Governors not later than December 23, City Centre, 1143 New Hampshire Ave. 1996. N.W., Washington, D.C. 20037. The Findings of Scientific Misconduct meeting is open to the public; seating is A. Federal Reserve Bank of Cleveland AGENCY: Office of the Secretary, HHS. limited. (R. Chris Moore, Senior Vice President) ACTION: Notice. 1455 East Sixth Street, Cleveland, Ohio FOR FURTHER INFORMATION CONTACT: 44101: SUMMARY: Notice is hereby given that Kenneth D. Fisher, Ph.D., Executive 1. First & Farmers Bancshares, Inc., the Office of Research Integrity (ORI) Director, Commission on Dietary Somerset, Kentucky; to merge with has made a final finding of scientific Supplement Labels, Office of Disease Cumberland Bancorp, Inc., Burkesville, misconduct in the following case: Prevention and Health Promotion, Room Kentucky, and thereby indirectly Yi Li, University of Illinois, Urbana- 738G, Hubert H. Humphrey Building, acquire Bank of Cumberland, Champaign: Based upon an 200 Independence Ave. S.W., Burkesville, Kentucky. investigation conducted by the Washington, D.C. 20201, (202) 690– B. Federal Reserve Bank of Chicago University of Illinois, Urbana- 7102. (James A. Bluemle, Vice President) 230 Champaign, information obtained by the South LaSalle Street, Chicago, Illinois SUPPLEMENTARY INFORMATION: Public Office of Research Integrity (ORI) during 60690: Law 103–417, Section 12, authorized its oversight review, and Mr. Li’s own 1. Beaman Bancshares, Inc., Beaman, the establishment of a Commission on admission, ORI found that Yi Li, while Iowa; to increase its ownership from Dietary Supplement Labels whose seven a candidate for a Ph.D. degree in the 24.9 percent, to at least 51 percent, of members have been appointed by the Neuroscience Program at the University the voting shares of Producers Savings President. The appointments to the of Illinois, Urbana-Champaign, engaged in scientific misconduct by fabricating Bank, Green Mountain, Iowa. Commission by the President and the an experimental study and results for C. Federal Reserve Bank of St. Louis establishment of the Commission by the research represented in an abstract (Randall C. Sumner, Vice President) 411 Secretary of Health and Human Services prepared for submission for Locust Street, St. Louis, Missouri 63166: reflect the commitment of the President presentation at a national meeting. The 1. Community State Bancshares, Inc., and the Secretary to the development of Shelbina, Missouri; to become a bank research was supported by a grant from a sound and consistent regulatory policy the National Institute on Aging (NIA), holding company by acquiring 100 on labeling of dietary supplements. percent of the voting shares of National Institutes of Health (NIH). The Commission is charged with The fabricated abstract and results Community State Bank, Shelbina, conducting a study and providing addressed an electrophysiological study Missouri. recommendations for regulation of label of the behavioral correlates for long- D. Federal Reserve Bank of Dallas claims and statements for dietary term potentiation in the motor cortex of (Genie D. Short, Vice President) 2200 supplements, including the use of the central nervous system of freely North Pearl Street, Dallas, Texas 75201- supplemental literature in connection moving rats. 2272: Mr. Li has accepted the ORI finding 1. Hickory Hill Bancshares, Inc., with their sale and, in addition, procedures for evaluation of label and has entered into a Voluntary Avinger, Texas, and Hickory Hill Exclusion Agreement with ORI in which Delaware Financial Corporation, Dover, claims. The Commission is expected to evaluate how best to provide truthful, he has voluntarily agreed, for the three Delaware; both to become bank holding (3) year period beginning November 18, companies by acquiring 100 percent of scientifically valid, and non-misleading information to consumers in order that 1996: the voting shares of The First State Bank (1) To exclude himself from serving in of Avinger, Avinger, Texas. they may make informed health care choices for themselves and their any advisory capacity to the Public Board of Governors of the Federal Reserve families. The Commission’s study report Health Service (PHS), including but not System, November 25, 1996. may include recommendations on limited to service on any PHS advisory Jennifer J. Johnson, legislation, if appropriate and necessary. committee, board, and/or peer review Deputy Secretary of the Board. committee, or as a consultant; and The Commission meeting agenda will [FR Doc. 96–30533 Filed 11–29–96; 8:45 am] (2) That any institution that submits include approval of minutes of the an application for PHS support for a BILLING CODE 6210±01±F previous meeting, review of draft research project on which the materials, and continuation of respondent’s participation is proposed discussion of key issues related to or which uses the respondent in any DEPARTMENT OF HEALTH AND labeling of dietary supplements that capacity on PHS supported research HUMAN SERVICES may be included in the Commission’s must concurrently submit a plan for forthcoming report. supervision of his duties. The Commission on Dietary Supplement The meeting is open to the public. If supervisory plan must be designed to Labels; Notice of Meeting No. 7 you will require a sign language ensure the scientific integrity of the interpreter, please call Sandra Saunders respondent’s research contribution. The AGENCY: Office of Disease Prevention (202) 690–7102 by 4:30 p.m. E.S.T. on institution must submit a copy of the and Health Promotion. December 6, 1996. supervisory plan to ORI. 63850 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

The fabricated abstract was not available from the Department of FISCAL YEAR 1998 FEDERAL ALLOT- submitted and has not been published Commerce. MENTS TO STATES FOR SOCIAL or used in any grant applications. For Fiscal Year 1998, the allotments SERVICESÐTITLE XX BLOCK are based upon the Bureau of Census FOR FURTHER INFORMATION CONTACT: GRANTSÐContinued Acting Director, Division of Research population statistics contained in its Investigations, Office of Research report ‘‘Population of States by Broad Virgin Islands ...... 410,345 Integrity, 5515 Security Lane, Suite 700, Age Groups and Sex: 1990 and 1995 Virginia ...... 59,609,939 Rockville, MD 20852 (301) 443–5330. (CB96–88, Table 4) released May 31, Washington ...... 48,918,341 West Virginia ...... 16,465,242 Chris B. Pascal, 1996, and ‘‘1990 Census of Population and Housing’’ (CPH–6–AS and CPH–6– Wisconsin ...... 46,144,110 Acting Director, Office of Research Integrity. Wyoming ...... 4,323,477 [FR Doc. 96–30637 Filed 11–29–96; 8:45 am] CNMI) published April 1992, which are the most recent data available from the BILLING CODE 4160±17±P Total ...... $2,380,000,000 Department of Commerce at this time as to the population of each State and each Dated: November 26, 1996. Administration for Children and Territory. Donald Sykes, Families EFFECTIVE DATE: The allotments shall be Director, Office of Community Services. effective October 1, 1997. [FR Doc. 96–30603 Filed 11–29–96; 8:45 am] Federal Allotments to States for Social BILLING CODE 4184±01±P Services Expenditures, Pursuant to FISCAL YEAR 1998 FEDERAL ALLOT- Title XX, Block Grants to States for MENTS TO STATES FOR SOCIAL Social Services; Promulgation for SERVICESÐTITLE XX BLOCK Food and Drug Administration Fiscal Year 1998 GRANTS [Docket No. 96M±0447] AGENCY: Administration for Children and Families, Department of Health and Alabama ...... $38,307,808 UroMed Corp.; Premarket Approval of Human Services. Alaska ...... 5,440,375 Reliance Urinary Control Insert and American Samoa ...... 88,560 ACTION: Notification of allocation of title Arizona ...... 37,992,554 Sizing Device XX—social services block grant Arkansas ...... 22,373,994 AGENCY: Food and Drug Administration, allotments for fiscal year 1998. California ...... 284,529,822 HHS. Colorado ...... 33,750,142 SUMMARY: This issuance sets forth the Connecticut ...... 29,498,723 ACTION: Notice. individual allotments to States for Fiscal Delaware ...... 6,458,194 SUMMARY: Year 1998, pursuant to title XX of the Dist. of Col ...... 4,990,013 The Food and Drug Social Security Act, as amended (Act). Florida ...... 127,596,615 Administration (FDA) is announcing its The allotments to the States published Georgia ...... 64,861,162 approval of the application by UroMed herein are based upon the authorization Guam ...... 410,345 Corp., Needham, MA, for premarket set forth in section 2003 of the Act and Hawaii ...... 10,691,598 approval, under the Federal Food, Drug, are contingent upon Congressional Idaho ...... 10,475,425 and Cosmetic Act (the act), of the Illinois ...... 106,555,694  appropriations for the fiscal year. If Reliance Urinary Control Insert and Indiana ...... 52,269,036 Sizing Device. After reviewing the Congress enacts and the President Iowa ...... 25,598,587 approves an amount different from the Kansas ...... 23,103,580 recommendation of the authorization, the allotments will be Kentucky ...... 34,767,961 Gastroenterology and Urology Devices adjusted proportionately. Louisiana ...... 39,109,452 Advisory Panel, FDA’s Center for Devices and Radiological Health (CDRH) FOR FURTHER INFORMATION CONTACT: Maine ...... 11,177,990 Maryland ...... 45,423,530 notified the applicant, by letter of Frank A. Burns, (202) 401–5536. Massachusetts ...... 54,709,999 August 16, 1996, of the approval of the SUPPLEMENTARY INFORMATION: Section Michigan ...... 86,010,171 application. 2003 of the Act authorizes $2.380 Minnesota ...... 41,523,394 DATES: Petitions for administrative billion for Fiscal Year 1998 and Mississippi ...... 24,292,536 provides that it be allocated as follows: Missouri ...... 47,954,566 review by January 2, 1997. ADDRESSES: (1) Puerto Rico, Guam, the Virgin Montana ...... 7,836,302 Written requests for copies Islands, and the Northern Mariana Nebraska ...... 14,744,858 of the summary of safety and Islands each receives an amount which Nevada ...... 13,781,083 effectiveness data and petitions for bears the same ratio to $2.380 billion as New Hampshire ...... 10,340,316 administrative review to the Dockets New Jersey ...... 71,562,552 its allocation for Fiscal Year 1981 bore Management Branch (HFA–305), Food New Mexico ...... 15,177,206 and Drug Administration, 12420 to $2.9 billion. New York ...... 163,355,373 (2) American Samoa receives an Parklawn Dr., rm. 1–23, Rockville, MD North Carolina ...... 64,807,119 20857. amount which bears the same ratio to North Dakota ...... 5,773,643 the amount allotted to the Northern No. Mariana Islands ...... 82,069 FOR FURTHER INFORMATION CONTACT: Mariana Islands as the population of Ohio ...... 100,439,775 Venkat Rao Nimmagadda, Center for American Samoa bears to the Oklahoma ...... 29,525,745 Devices and Radiological Health (HFZ– population of the Northern Mariana Oregon ...... 28,291,753 470), Food and Drug Administration, Islands determined on the basis of the Pennsylvania ...... 108,735,447 9200 Corporate Blvd., Rockville, MD most recent data available at the time Puerto Rico ...... 12,310,345 20850, 301–594–2194. Rhode Island ...... 8,917,171 SUPPLEMENTARY INFORMATION: On August such allotment is determined. South Carolina ...... 33,083,606 (3) The remainder of the $2.380 South Dakota ...... 6,566,281 18, 1995, UroMed Corp., Needham, MA billion is allotted to each State in the Tennessee ...... 47,342,073 02194, submitted to CDRH an same proportion as that State’s Texas ...... 168,651,632 application for premarket approval of population is to the population of all Utah ...... 17,573,133 the Reliance Urinary Control Insert States, based upon the most recent data Vermont ...... 5,269,238 and Sizing Device. The device is a Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63851 transurethral female urinary occlusion used, the persons who may participate of the functions of the agency, including device and is intended for use in the in the review, the time and place where whether the information shall have management of stress urinary the review will occur, and other details. practical utility; (b) the accuracy of the incontinence in adult women. Petitioners may, at any time on or agency’s estimate of the burden of the On July 25, 1996, the before January 2, 1997, file with the proposed collection of information; (c) Gastroenterology and Urology Devices Dockets Management Branch (address ways to enhance the quality, utility, and Panel of the Medical Devices Advisory above) two copies of each petition and clarity of the information to be Committee, an FDA advisory committee, supporting data and information, collected; and (d) ways to minimize the reviewed and recommended approval of identified with the name of the device burden of the collection of information the application. On August 16, 1996, and the docket number found in on respondents, including through the CDRH approved the application by a brackets in the heading of this use of automated collection techniques letter to the applicant from the Director document. Received petitions may be or other forms of information of the Office of Device Evaluation, seen in the office above between 9 a.m. technology. and 4 p.m., Monday through Friday. CDRH. Proposed Projects A summary of the safety and This notice is issued under the effectiveness data on which CDRH Federal Food, Drug, and Cosmetic Act 1. Application for Certification as a based its approval is on file in the (secs. 515(d), 520(h) (21 U.S.C. 360e(d), Federally Qualified Health Center Dockets Management Branch (address 360j(h))) and under authority delegated (FQHC)(OMB No.0915–0142)— above) and is available from that office to the Commissioner of Food and Drugs Extension, No Change upon written request. Requests should (21 CFR 5.10) and redelegated to the The Federally Qualified Health Center be identified with the name of the Director, Center for Devices and Radiological Health (21 CFR 5.53). (FQHC) Look-Alike application package device and the docket number found in (OMB No. 0915–0142) was developed to brackets in the heading of this Dated: October 24, 1996. certify entities as FQHC providers under document. Joseph A. Levitt, Medicaid and Medicare. FQHCs receive Deputy Director for Regulations Policy, Center Opportunity for Administrative Review for Devices and Radiological Health. reasonable cost-related reimbursement under Medicaid and Medicare for a full Section 515(d)(3) of the act (21 U.S.C. [FR Doc. 96–30649 Filed 11–29–96; 8:45 am] range of primary health care services. 360e(d)(3)) authorizes any interested BILLING CODE 4160±01±F person to petition, under section 515(g) The application for FQHC certification of the act, for administrative review of is divided into four components: (1) CDRH’s decision to approve this Health Resources and Service Need and Community Impact, (2) Health application. A petitioner may request Administration Services, (3) Management and Finance, either a formal hearing under 21 CFR and (4) Governance. Certified FQHC part 12 of FDA’s administrative Agency Information Collection Look-Alikes must submit an annual practices and procedures regulations or Activities: Proposed Collection: recertification document with updated a review of the application and CDRH’s Comment Request exhibits to retain designation as an FQHC. action by an independent advisory In compliance with the requirement committee of experts. A petition is to be of Section 3506(c)(2)(A) of the In an effort to improve the procedures in the form of a petition for Paperwork Reduction Act of 1995 for for certifying FQHCs, HRSA is reconsideration under 21 CFR 10.33(b). opportunity for public comment on considering revising the FQHC Look- A petitioner shall identify the form of proposed data collection projects, the Alike application (with parallel changes review requested (hearing or Health Resources and Services made to the recertification independent advisory committee) and Administration (HRSA) will publish requirements). The revised version shall submit with the petition periodic summaries of proposed would update the application guidelines supporting data and information projects being developed for submission and exhibits to reflect current law, showing that there is a genuine and to OMB under the Paperwork Reduction regulations, and practice. A revised substantial issue of material fact for Act of 1995. To request more application may also include more resolution through administrative information on the proposed project or specific guidance on how applicants review. After reviewing the petition, to obtain a copy of the data collection should document existing unmet need FDA will decide whether to grant or plans and draft instruments, call the in the community. deny the petition and will publish a HRSA Reports Clearance Officer on These revisions will be developed notice of its decision in the Federal (301) 443–1129. during the next year. In the interim, a Register. If FDA grants the petition, the Comments are invited on: (a) Whether request for a two-year extension of OMB notice will state the issue to be the proposed collection of information approval of the current form will be reviewed, the form of the review to be is necessary for the proper performance submitted.

ESTIMATES OF ANNUALIZED HOUR BURDEN

Responses Form name Number of re- per respond- Hours per re- Total burden spondents ent sponse hours

Application ...... 40 1 120 4,800 Recertification ...... 213 1 20 4,260

Total Burden ...... 253 1 35.8 9,060 63852 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

2. Assessment of HIV Counseling and 25 percent sample of the BPHC’s programmatic and population-specific Testing (C&T) Services for Women of programs, supplemented by oversample barriers to delivery of HIV C&T services; Childbearing Age in Bureau of Primary of specific programs (e.g., Health Care (e) lessons and best practices for Health Care (BPHC) Programs—NEW for the Homeless (Section 340); Ryan replication; (f) recommendations for White Title III programs). technical assistance to facilitate timely, The Bureau of Primary Health Care The mail survey instrument will be effective implementation. The resulting (BPHC), Health Resources and Services designed to explore various HIV C&T analysis and report will present Administration (HRSA) is planning to implementation issues and relevant program-based lessons and conduct a survey-based study of its research questions, including: (a) Extent recommendations for assisting and primary care programs to examine to which HIV C&T services are available improving capacity of various BPHC various implementation issues related to (provided directly by programs or programs to design and implement HIV the design and delivery of HIV through referrals), (b) attributes of the C&T services for women of childbearing counseling and testing (HIV C&T) BPHC programs that offer HIV C&T age, and thus assist in promoting services to women of childbearing age services to women of childbearing age; community-based HIV C&T services for and pregnant women. The study (c) characteristics of HIV C&T services, women, especially pregnant women. population will be a randomly selected provided by BPHC programs; (d) Response burden is as follows:

Number of re- Responses/re- Hours per re- Total burden Survey mechanism spondents spondent sponse hours

Mail questionnaire ...... 277 1 1.5 416

Send comments to Patricia Royston, Research Triangle Park, NC 27709. The NIEHS of the NIH is seeking HRSA Reports Clearance Officer, Room Telephone (919) 541–2992; Fax (919) capability statements from interested 14–36, Parklawn Building, 5600 Fishers 541–7784; E-mail parties in developing a CRADA to Lane, Rockville, MD 20857. Written [email protected] develop gene therapy vectors as well as comments should be received within 60 to develop models in which to test the days of this notice. Questions related to the CRADA efficacy of the use of KAI1 in gene process may be addressed to Ms. Lili Dated: November 26, 1996. therapy. This project is with the Portilla, Senior Technology Transfer Laboratory of Molecular Carcinogenesis, J. Henry Montes, Specialist, National Heart, Lung, and Associate Administrator for Policy Cancer and Aging Group at the National Blood Institute, 31 Center Drive MSC Institute of Environmental Health Coordination. 2490, Building 31, Room 1B30, [FR Doc. 96–30591 Filed 11–29–96; 8:45 am] Sciences, National Institutes of Health, Bethesda, MD 20892–2490; Phone: (301) Research Triangle Park, North Carolina. BILLING CODE 4160±15±U 402–5579; Fax: (301) 594–3080; E-mail: The goals are to use the respective [email protected] strengths of both parties to achieve one National Institutes of Health The NIEHS has applied for patents or more of the following: claiming this core technology. Non- 1. Develop suitable gene therapy National Institute of Environmental exclusive and/or exclusive licenses for vectors containing the KAI1 gene. these patents covering core aspects of Health Sciences: Opportunity for a 2. Develop a model for testing the this project are available to interested Cooperative Research and efficacy of KAI1 vectors for the parties. Licensing applications and Development Agreement (CRADA) and suppression of tumor metastasis in vivo, License for the Development of KAI1 in licensing inquiries regarding this including gene delivery and metastases Gene Therapy Protocols for the technology should be referred to Mr. assays, and assessment of toxicity of Treatment of Metastatic Disease Ken Hemby, Technology Licensing treatment protocol. Specialist, NIH Office of Technology AGENCY: National Institutes of Health, Transfer, 6011 Executive Boulevard, It is anticipated that under this PHS, DHHS. Suite 325, Rockville, Maryland 20852– CRADA, the NIEHS will (1) provide ACTION: Notice. 3804; Phone: (301) 496–7735 ext 265; cDNA of KAI1 gene for insertion into appropriate vectors and (2) work SUMMARY: The National Institutes of Fax: (301) 402–0220; E-mail: [email protected] cooperatively with interested Health (NIH) seeks a company(ies) to company(ies) to develop and test a pursue the development of gene therapy SUPPLEMENTARY INFORMATION: The model that is suitable to measure the protocols involving the KAI1 metastasis National Institute of Environmental ability of KAI1 to suppress tumor suppressor gene. The National Institute Health Sciences has shown that the metastasis in vivo. The collaborator may of Environmental Health Sciences has KAI1 gene can suppress metastasis of also be expected to contribute financial established that KAI1 alterations occur prostate cancer and is down regulated in support under this CRADA for supplies in the development of malignant human malignant prostate cancers. and personnel to support these projects. prostate cancer, and that its loss is Therefore it is possible that treatment of Selection criteria for choosing the correlated with progression to the patients who are diagnosed with metastatic phenotype. CRADA partner(s) will include, but not prostate cancer in the early stages may be limited to the following: DATES: Capability statements must be be treated with the KAI1 gene, to received by NIH on or before January 31, prevent the metastasis of their tumors, 1. Experience in the development of 1997. in conjunction with other therapies that gene therapy vectors. ADDRESSES: Proposals and scientific are used to eradicate the primary tumor. 2. Experience in delivery of questions about this opportunity may be It has been shown that expression of pharmacological agents in vivo. addressed to Dr. J. Carl Barrett, NIEHS, KAI1 in normal cells is not toxic and 3. Ability to develop appropriate Mail Drop C2–15, P. O. Box 12233, does not affect cell growth. animal model for testing. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63853

Dated: November 21, 1996. powerful new tool for users of a variety Method of Mobilizing Pluripotential Barbara M. McGarey, of three-dimensional systems. (portfolio: Hematopoietic Stem Cells With IL–7 Deputy Director, Office of Technology Devices/Instrumentation—Other) RH Wiltrout, F Ruscetti, K Transfer. Compositions for the Prevention or Grzegorzewski, J Keller, KL [FR Doc. 96–30539 Filed 11–29–96; 8:45 am] Retardation of Cataracts Komschlies-McConville (NCI) BILLING CODE 4140±01±M Serial No. 08/341,399 filed 16 Nov 94 JS Zigler Jr., P Russell, S Tumminia, C Licensing Contact: Jaconda Wagner, Qin, CM Krishna (NEI) 301/496–7735 ext 284 Government-Owned Inventions; Serial No. 60/010,637 filed 26 Jan 96 This invention provides a method of Availability for Licensing Licensing Contract: J. Peter Kim, 301/ increasing numbers of hematopietic stem cells in a subject by administering AGENCY: National Institutes of Health, 496–7056, ext. 264 interleukin–7 to the subject. DHH. Oxidative stress is becoming Hematopoietic stem cells are ACTION: recognized a major problem, and free Notice. distinguishable from hematopoietic radicals and activated oxygen species progenitor cells in that the stem cells are The inventions listed below are are recognized as agents of tissue pluripotent and not yet committed to owned by agencies of the U.S. damage associated with a number of myeloid or lymphoid lineages. After Government and are available for conditions. Aging-related cataract is a treatment, a population of leukocytes licensing in the U.S. in accordance with disease of multifactorial origin enriched for hematopoietic stem cells 35 U.S.C. 207 to achieve expeditious involving many of the same processes may be isolated from the subject’s commercialization of results of federally which characterize the process of aging peripheral blood. Such a population of funded research and development. in other tissues. It appears that once leukocytes enriched from hematopoietic Foreign patent applications are filed on cataractogenesis has begun, the process stem cells may be transferred into a selected inventions to extend market of cataract development may proceed recipient in order to enhance the coverage for U.S. companies and may via one or more common pathways or repopulation of the recipient’s also be available for licensing. processes. The subject invention focuses hematopoietic and immune cells. In ADDRESSES: Licensing information and on intervening at the level of these addition, the method provides for copies of the U.S. patent applications common pathways in hopes of stopping improved engraftment of a bone marrow listed below may be obtained by writing or slowing the progression of the disease transplant in a recipient following to the indicated licensing contact at the process. The present invention provides transplantation or irradiation. A Notice Office of Technology Transfer, National methods and compositions for the of Allowance has recently been issued Institutes of Health, 6011 Executive prevention and treatment of cataract for this patent application. (portfolio: Boulevard, Suite 325, Rockville, formation which comprise a nitroxide Internal Medicine—Therapeutics; Maryland 20852–3804 (telephone 301/ free radical compound or its Cancer—Therapeutics; biological 496–7057; fax 301/402–0220). A signed hydroxylamine and a thiol reducing response modifiers, growth factors) Confidential Disclosure Agreement will agent. (portfolio: Ophthalmology— be required to receive copies of the Therapeutics, chemical) Dated: November 20, 1996. patent applications. Barbara M. McGarey, Molecular Cloning and Image Registration Using Voxel Deputy Director, Office of Technology Characterization of a Differentiation Transfer. Gradients With an Iterative Antigen, CAK1, Present on [FR Doc. 96–30538 Filed 11–29–96; 8:45 am] Registration Process Mesothelium, Mesotheliomas and BILLING CODE 4140±01±M J Ostuni (LDRR) Ovarian Cancers Serial No. 60/016,429 filed 29 Apr 96 I Pastan, K Chang (NCI) Licensing Contact: John Fahner-Vihtelic, Office of the Secretary 301/496–7735 ext. 285 Serial No. 60/010,166 filed 05 Jan 96 To date, it has been difficult to Licensing Contact: Larry Tiffany, 301/ Notice of Meeting of the Human combine or compare images which 496–7056 ext 206 Genetics Subcommittee of the National represent a similar scene using different CAK1, or ‘‘mesothelin’’, is an antigen Bioethics Advisory Commission and unrelated intensities, for example, present on the cell surface in (NBAC) two magnetic resonance volumes taken mesothelium and on many with different sequences. The current mesotheliomas and ovarian cancers. SUMMARY: Pursuant to Section 10(d) of invention represents a means by which While the role of this differentiation the Federal Advisory Committee Act, as this difficulty may be overcome, and antigens has not yet been determined, it amended (5 U.S.C. Appendix 2), this embodies an algorithm which allows for is postulated that it may be implicated notice is hereby given to announce an the registration or the ‘‘matching up’’ of in adhesion and in the dissemination of open meeting of The Human Genetics multiple three-dimensional images. mesotheliomas and of ovarian cancers. Subcommittee of the National Bioethics Specifically, the algorithm is based CAK1, therefore, is a potential target for Advisory Commission (NBAC). The upon finding the correspondence of monoclonal antibodies to be used in the purpose is to discuss issues regarding closest gradient voxels, where a gradient diagnosis and treatment of these the use of genetic information and voxel is any voxel containing a high 3D cancers. The gene for CAK1 has been technologies. intensity gradient. Typically, gradient cloned and sequenced, as embodied in DATES: Friday December 13, 1996, 7:30 voxels represent areas of change within the current invention. The invention, a.m. to 3:30 p.m. the image. This algorithm can therefore, should provide a valuable PLACE: National Institutes of Health, successfully perform registrations under research tool for use in the development Building 31 C wing, 6th Floor, conditions of unrelated voxel intensity, of diagnostics and/or therapeutic agents Conference Room 9, Bethesda, Maryland significant object motion and/or toward mesotheliomas and ovarian 20892. significant amounts of missing data. The cancers. (portfolio: Cancer—Research SUPPLEMENTARY INFORMATION: The invention, therefore, represents a Materials, DNA based) President established the National 63854 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Bioethics Advisory Commission (NBAC) Notice of Meeting of the Human meeting. Persons who wish to file by Executive Order 12975, October 3, Subjects Subcommittee of the National written statements with NBAC may do 1995. The purpose of NBAC is to Bioethics Advisory Commission so at any time. provide advice and make (NBAC) FOR FURTHER INFORMATION CONTACT: recommendations to the National Patricia Norris, Communications SUMMARY: Pursuant to Section 10(d) of Science and Technology Council and Director, National Bioethics Advisory the Federal Advisory Committee Act, as Commission, MSC–7508, 6100 other appropriate entities on bioethical amended (5 U.S.C. Appendix 2), this issues arising from research on human Executive Boulevard, Suite 3C01, notice is hereby given to announce an Rockville, Maryland 20892–7508, biology and behavior and the open meeting of the Human Subjects applications, including the clinical telephone 301–402–4242, fax 301–480– Subcommittee of the National Bioethics 6900. applications, of that research. Advisory Commission (NBAC). The Dated: November 22, 1996. Tentative Agenda purpose is to discuss issues regarding the protection of human research Philip R. Lee, Friday, December 13, 1996 subjects. Assistant Secretary for Health. DATES: Monday, December 16, 1996, [FR Doc. 96–30541 Filed 11–29–96; 8:45 am] Morning Session 7:30 a.m. to 3:30 p.m. BILLING CODE 4160±17±M 7:30–11:30 a.m. Discussion of issues PLACE: National Institutes of Health, by subcommittee members regarding the Building 31 C wing, 6th Floor, use of genetic information and Conference Room 8, Bethesda, Maryland DEPARTMENT OF THE INTERIOR 20892. technology. Fish and Wildlife Service SUPPLEMENTARY INFORMATION: 11:30–12:30 p.m. Lunch. The President established the National DEPARTMENT OF COMMERCE Afternoon Session Bioethics Advisory Commission (MBAC) by Executive Order 12975, National Oceanic and Atmospheric 12:30–3:00 p.m. Continuation of October 3, 1995. The purpose of NBAC Administration discussion by subcommittee members of is to provide advice and make issues regarding the use of genetic recommendations to the National Notice of Availability of Final information and technology. Science and Technology Council and Handbook for Habitat Conservation 3:00–3:30 p.m. Public comment. other appropriate entities on bioethical Planning and Incidental Take issues arising from research on human Permitting Process 3:30 p.m. Adjourn. biology and behavior and the AGENCIES: Fish and Wildlife Service, Public Participation applications, including the clinical Interior, and National Marine Fisheries applications, of that research. Service, National Oceanic and The meeting is open to the public Atmospheric Administration, with attendance limited to space Tentative Agenda Commerce. available. Members of the public who Monday, December 16, 1996. ACTION: Notice of document availability. wish to make oral statements should Morning Session contact NBAC at the address or SUMMARY: The Fish and Wildlife Service telephone number listed below. 7:30–11:30 a.m. Discussion of human and National Marine Fisheries Service Reasonable provisions will be made to subjects protections issues by (hereafter referred to as the Services) include on the agenda presentations by subcommittee members. announce the availability of their final 11:30–12:30 p.m. Lunch. persons requesting an opportunity to Handbook for Habitat Conservation speak. Individuals who plan to attend Afternoon Session Planning and Incidental Take Permitting the meeting and need special assistance, 12:30–3:00 p.m. Continuation of Process. This final guidance document such as sign language interpretation or discussion of human subjects provides internal guidance for other special accommodations, should protections issues by subcommittee conducting the incidental take permit also contact NBAC at the address or members. program under section 10(a)(1)(B) of the telephone number listed below at least 3:00–3:30 p.m. Public comment. Endangered Species Act of 1973, as seven business days prior to the 3:30 p.m. Adjourn. amended (Act). Its purpose is to provide meeting. Persons who wish to file policy and guidance for section Public Participation written statements with NBAC may do 10(a)(1)(B) procedures to promote so at any time. The meeting is open to the public efficiency and nationwide consistency with attendance limited to space within and between the Services. FOR FURTHER INFORMATION CONTACT: available. Members of the public who Although intended primarily as internal Patricia Norris, Communications wish to make oral statements should agency guidance, this Handbook is fully Director, National Bioethics Advisory contact NBAC at the address or available for public evaluation, and use, Commission, MSC–7508, 6100 telephone number listed below. as appropriate. Executive Boulevard, Suite 3C01, Reasonable provisions will be made to ADDRESSES: Persons wishing to receive Rockville, Maryland 20892–7508, include on the agenda presentations by a copy of the final Handbook for Habitat telephone 301–402–4242, fax 301–480– persons requesting an opportunity to Conservation Planning and Incidental 6900. speak. Individuals who plan to attend Take Permitting Process should contact Dated: November 22, 1996. the meeting and need special assistance, the Division of Endangered Species, such as sign language interpretation or U.S. Fish and Wildlife Service, 4401 Philip R. Lee, other special accommodations should North Fairfax Drive, Room 452, Assistant Secretary for Health. also contact NBAC at the address or Arlington, Virginia 22203, or the [FR Doc. 96–30540 Filed 11–29–96; 8:45 am] telephone number listed below at least Endangered Species Division, National BILLING CODE 4160±17±M seven business days prior to the Marine Fisheries Service, 1335 East- Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63855

West Highway, Silver Spring, Maryland earlier comments submitted on the Regional Director or NMFS’s Regional 20910. Handbook. The major issues advanced Administrator and the applicant. FOR FURTHER INFORMATION CONTACT: E. by commenters have been combined, Implementing Agreements are LaVerne Smith, Chief, Division of paraphrased, and responded to below. recommended for regional or other Endangered Species, U.S. Fish and Issues: Several commenters stated that large-scale HCPs that address significant Wildlife Service, (703/358-2171), or a process should be incorporated into portions of a species’ range or involve Robert Ziobro, Acting Chief, Endangered the HCP planning process so that numerous activities or landowners, or Species Division, National Marine proposed, candidates, and unlisted for HCPs with long-term mitigation and Fisheries Service at the above addresses. species can be included on a permit. monitoring programs. Response: The Services revised the Issue: Commenters stated that more SUPPLEMENTARY INFORMATION: Handbook to allow the names of guidance was needed for mitigation Background unlisted species that are adequately issues, such as the suitability of research addressed in an HCP to be listed on a for mitigation or standardizing Section 9(a)(1)(B) makes it unlawful permit with a delayed effective date tied mitigation strategies. for any person to ‘‘take’’ an endangered to the date of any future listing. Unlisted Response: The Services have revised species. Take of threatened species is species as used here includes the Handbook to restate that, first and prohibited by regulations issued by the candidates, proposed, and any other foremost, mitigation strategies should Services under the authority of Sections species mutually agreed to by the compensate for habitat lost through the 4(d) and 9(a)(1)(G) of the Act. See, e.g., applicant and Services that are permitted activities of the HCP by 50 CFR 17.31, 17.21, and 17.40–.48 for adequately addressed in the HCP as establishing suitable habitat for the FWS and 50 CFR 222 and 227 for though they were listed. The Services species that will be conserved and held NMFS. ‘‘Take’’ is defined by the Act as recognize that the primary jurisdiction in perpetuity, if possible. For example, to ‘‘harass, harm, pursue, hunt, shoot, over candidate and unlisted species the mitigation requirement for low- wound, kill, trap, capture, or collect, or generally rests with the affected State effect HCPs or for HCPs that have a attempt to engage in any such conduct.’’ fish and wildlife agencies, thereby negligible effect on habitat could be to Section 10(a)(1)(B) of the Act (16 U.S.C. prompting the need for close restore or enhance existing habitat so 1539(a)(1)(B)) allows the Services, under coordination and active cooperation that it better meets the species’ certain circumstances, to issue permits with State agencies in the HCP process. requirements. Research by itself is not to non-Federal entities to allow Issue: Commenters stated that the considered a preferred mitigation ‘‘incidental take’’ of federally listed fish HCP categories unnecessarily strategy, since the type of mitigation is and wildlife species. (Federal agencies complicate the HCP process. In usually related directly to correcting the may obtain similar authority for take addition, specific instructions are effect of the action. However, research under section 7 of the Act). The Act needed for assigning projects to may be an integral part of a mitigation defines ‘‘incidental take’’ as take that is categories. strategy. ‘‘incidental to, and not the purpose of, Response: The Services decided to In addition, the Handbook reiterates carrying out an otherwise lawful eliminate the high-effect and medium- that mitigation measures required by activity.’’ Any applicant for an effect categories and link the target individual FWS or NMFS offices should incidental take permit must submit to processing times to the NEPA analysis be as consistent as possible for the same the Services a ‘‘conservation plan’’ or required rather than to HCP category. species. This can be challenging when ‘‘Habitat Conservation Plan (HCP)’’ that The rationale for this is that there is a species encompasses multiple offices specifies, among other things, the little to distinguish the high-effect and or regions, but is essential. Also, impacts to affected species likely to medium-effect categories other than mitigation standards should also be result from such taking and the steps the NEPA requirements. The expedited low- developed in coordination with the applicant will take to minimize and effect category would remain in place. appropriate state wildlife agencies. The mitigate such impacts. The Handbook also establishes target Service should not apply inconsistent This final Handbook provides permit processing timelines for HCPs mitigation policies for the same species, consistent procedures for Service based on the level of NEPA analysis unless differences are based on compliance with the incidental take required. Although not mandated by biological or other valid reasons and are permit provisions of section 10(a)(1)(B) law or regulation, these targets are clearly explained. Consistent mitigation of the Act. Consistency in the section adopted as FWS and NMFS policy, and strategies help streamline the HCP 10(a)(1)(B) program will be achieved by: all offices are expected to meet these development process—especially for (1) providing national procedural and targets to the maximum extent smaller HCPs—by providing readily policy guidance; practicable. available standards which applicants (2) providing standardized guidance Issue: Commenters stated that can adopt in their HCPs. to Service offices and personnel who Implementing Agreements should not Issue: Commenters suggested that the participate in conservation planning be required for single-project, low-to NEPA analysis should be limited to the programs under section 10(a)(1)(B) and medium-effect projects. impacts of the Federal action (i.e., review and process incidental take Response: The Handbook has been issuance of the incidental take permit) permit applications; revised by the Services so that an and that some of the NEPA analysis is (3) providing assistance to applicants Implementing Agreement is no longer duplicative to the HCP planning in the non-Federal sector who wish to mandatory for all HCPs. Implementing process. apply for incidental take permits; and Agreements would not be required for Response: The scope of the NEPA (4) providing for conservation of low-effect HCPs, and would be prepared analysis covers the direct, indirect, and federally listed, proposed, and in such situations only when one is cumulative effects of the proposed candidate species. requested by the permit applicant. In incidental take permit, including the other HCPs, the development of the mitigation and minimization measures Public Comments Addressed Implementing Agreement will depend proposed for implementation in the The Services considered all on the size and scope of the HCP and HCP. However, the scope of the NEPA information and recommendations from is left to the discretion of the FWS’s analysis will vary depending on the 63856 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices nature of the scope of activities the destruction or adverse modification’’ species. The following two assurances described in the HCP. In some cases, the of critical habitat. Because issuance of a are provided regardless of whether an anticipated environmental effects in the section 10 permit involves an HCP provides an overall net benefit to NEPA document that addresses the HCP authorization, it is subject to this a species: may be confined to effects on provision. 1. If additional mitigation measures endangered species and other wildlife The provisions of section 7 and are subsequently deemed necessary to and plants, simply because there are no section 10 are similar. Indeed, one of the provide for the conservation of a species other important effects. In many cases, statutory criteria for determining that was otherwise adequately covered the NEPA analysis will focus on the whether to issue an incidental take under the terms of a properly effects of the minimization and permit—whether ‘‘the taking will not functioning HCP, the obligation for such mitigation actions on other wildlife and appreciably reduce the likelihood of the measures shall not rest with the HCP plants and will examine any alternatives survival and recovery of the species in permittee. or conservation strategies that might not the wild’’—is based on the regulatory 2. If extraordinary circumstances otherwise have been considered. In definition of the section 7(a)(2) jeopardy warrant the requirement of additional other cases, the minimization and standard. See section 10(a)(2)(B)(iv) of mitigation from an HCP permittee who mitigation activities proposed in the the ESA and 50 CFR section 402.02 is in compliance with the HCP’s HCP may affect a wider range of impacts (definition of ‘‘jeopardize the continued obligations, such mitigation shall analyzed under NEPA, such as cultural existence of’’). However, section 7 and maintain the original terms of the HCP resources or water use. It is important to its regulations introduce several to the maximum extent possible. keep in mind, however, that, as required considerations into the HCP process that Further, any such changes shall be by the White House Council of are not explicitly required by section limited to modifications within any Environmental Quality (CEQ) 10—specifically, indirect effects, effects Conserved Habitat areas which might be regulations, the NEPA analysis for an on federally listed plants, and effects on established under the HCP or to the HCP should be directed toward critical habitat. The Services have HCP’s operating conservation program analyzing direct, indirect, and revised the Handbook so that the section for the affected species. In all cases, cumulative impacts that would be 7 requirements are discussed earlier in additional mitigation requirements shall caused by the approval of the HCP, that the HCP planning process to help not involve the payment of additional are reasonably foreseeable, and that are resolve any conflicts and to expedite the compensation or apply to parcels of potentially significant. These impacts process. land available for development or land may extend beyond the direct impacts Issue: Comments were received management under the original terms of of the permit itself. regarding the inconsistencies between the HCP without the consent of the HCP In addition, because the CEQ 50 CFR Part 13 and incidental take permittee. regulations specifically permit NEPA permits. In addition, even in the event of documents to be combined with other Response: On September 5, 1995, the unforeseen circumstances, the FWS and agency documents to reduce duplication Fish and Wildlife Service published a NMFS will not seek additional and paperwork (40 CFR 1506.4), the proposed rule in the Federal Register mitigation from an HCP permittee where Services revised the Handbook amending the general regulations for its the terms of a properly functioning HCP regarding the NEPA analysis to permit program (50 CFR Part 13 and agreement were designed to provide an encourage the Service’s offices to Part 17). The Service is currently overall net benefit for that species and combine the HCP and NEPA analysis drafting additional language to further contained measurable criteria for the into a single document. This technique clarify the relationship between Part 13 biological success of the HCP which should not be viewed as preparation of and various endangered species permits have been or are being met. This means two separate documents that are then issued under Part 17, and an amended that the Services will not attempt to published under the same cover, but rule will be published in the near impose additional mitigation measures rather one integrated analysis that meets future. of any type under the terms stated. It is the requirements of both NEPA and Issue: Several issues were raised intended to encourage HCP applicants ESA. For example, the discussion of regarding the ‘‘No Surprises’’ policy to develop HCPs that provide an overall effects should include analysis of both included in the draft HCP Handbook. net benefit to affected species. It does the impacts of the proposed HCP and These include: a request to clarify the not mean that any HCP must in fact the alternatives to the listed plants and fact that net benefit to the species is not have already achieved a net benefit the wildlife as well as other required to obtain ‘‘No Surprises’’ before the ‘‘No Surprises’’ policy environmental effects that should be assurances; the suggestion that the applies, but instead that the HCP must analyzed under NEPA. ‘‘extraordinary circumstances’’ have been designed to achieve an Issue: Commenters stated that the provision in the policy is not consistent overall net benefit and is being section 7 process was overly with the promise of long-term certainty implemented fully by the HCP burdensome to the applicant, and under HCPs; and the conflicting permittee. recommended that HCP permit should suggestions that the ‘‘No Surprises’’ The second issue, which pertains to be exempted from section 7 policy should be codified as a regulation the promise of long-term certainty under requirements. and that the ‘‘No Surprises’’ policy HCPs and the ‘‘extraordinary Response: Issuance of an incidental exceeds FWS and NMFS authority circumstances’’ provision in the policy, take permit is a Federal action subject under the ESA. has been clarified in the final to section 7 of the ESA. Section 7(a)(2) Response: The first issue pertains to Handbook. The ‘‘No Surprises’’ policy requires all Federal agencies, in the assurances provided to an applicant provides certainty for private consultation with the Services, to with an HCP that does not provide a net landowners in HCPs through the ensure that any action ‘‘authorized, benefit to the species covered in the following assurances: In negotiating funded, or carried out’’ by any such HCP. The HCP Handbook describes the ‘‘unforeseen circumstances’’ provisions agency ‘‘is not likely to jeopardize the differing assurances provided applicants for HCPs, the Services will not require continued existence of any endangered depending upon whether the HCP is the commitment of additional land or species or threatened species or result in designed to provide a net benefit to the financial compensation beyond the level Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63857 of mitigation which was otherwise imposed if the conservation plan effect HCPs, 3–5 months for HCPs with adequately provided for a species under addressed the conservation of the an Environmental Assessment, and less the terms of a properly functioning HCP. species and its habitat as if the species than 10 months for HCPs with an Moreover, the Services will not seek any were listed pursuant to the Act’’ (H.R. Environmental Impact Statement). other form of additional mitigation from Rep. No. 835, 97th Cong., 2d Sess. 30– 6. Encourage the integration of the an HCP permittee except under 31 (1982)). Accordingly, Federal HCP with the NEPA analysis and extraordinary circumstances. Thus, the regulation requires such procedures to provide an example of a combined HCP/ long-term certainty that is provided is be detailed in the HCP [50 CFR EA document. the assurance that under no 17.22(b)(1)(iii)(C)]. 7. Make use of Implementing circumstances, including extraordinary Moreover, as the discussion of the Agreements subject to Regional Director circumstances, shall an HCP permittee ‘‘No Surprises’’ policy in the final discretion for HCPs other than low- who is abiding by the terms of their HCP Handbook makes clear, the commitment effect HCPs. be required to provide a greater by the Services in the policy is a 8. Allow unlisted species to be named financial commitment or accept commitment ‘‘to the extent consistent on the HCP permit (with a delayed additional land use restrictions on with the requirements of the effective date tied to date of any future property available for economic use or Endangered Species Act and other listing) if adequately addressed in the development. Federal laws,’’ like the Anti-Deficiency HCP, eliminating the need for further The third issue pertains to the Act. However, the policy also makes paperwork processing to amend the codification of the ‘‘No Surprises’’ clear that ‘‘methods of responding to the permit if such a species is subsequently policy into a regulation. The Services do needs of affected species [other than listed. not believe it is necessary to codify the exacting additional mitigation from the 9. Allow mitigation/monitoring ‘‘No Surprises’’ policy as a specific permittees], such as government action activities resulting in take to be regulation, because it is simply a and voluntary conservation measures by authorized under the HCP permit rather statement of policy. Nevertheless, the the permittee, remain available to assure than a separate section 10(a)(1)(A) policy has been subjected to procedures the requirements of the ESA are scientific research permit. similar to those used to codify satisfied.’’ 10. Require the integration of section regulations. The policy was Issue: Commenters stated that the 7/section 10 requirements early in the incorporated into the draft Handbook Handbook does little to streamline the HCP process, and for Habitat Conservation Planning and HCP process. 11. Increase coordination Incidental Take Permitting Process to Response: A summary of the requirements between a Field Office and help address the problem of maintaining streamlining measures and other Regional Office during HCP negotiation regulatory assurances for applicants improvements introduced in the revised and permit processing phases. applying for incidental take permits HCP Handbook are identified in the Author/Editor: The editors of this through the HCP process. This policy following section of this notice. document were Cindy Dohner, U.S. Fish was subjected to a public review process and Wildlife Service, Division of Summary of Streamlining Measures when a notice of availability was Endangered Species, and Margaret published in the Federal Register for The following is a summary of the Lorenz, Endangered Species, National the draft Handbook for Habitat streamlining measures and other Marine Fisheries Service (See Conservation Planning and Incidental improvements introduced in the revised ADDRESSES section). Take Permitting Process on December HCP Handbook as a result of this review Authority: The authority for this action is 21, 1994 and the FWS solicited process. The final Handbook includes comments through this availability the Endangered Species Act of 1973, as numerous reforms that are designed to: amended (16 U.S.C. 1531 et seq.). announcement. 1. Provide clear guidance and Dated: November 1, 1996. The final issue concerns the fact that standards for all aspects of the HCP commenters objected to the ‘‘No program. Jay L. Gerst, Surprises’’ policy because it is seen as 2. Encourage flexibility in many Acting Director, Fish and Wildlife Service. exceeding FWS and NMFS authority procedural decisions to combine the Dated: November 22, 1996. under the ESA. The Services believe HCP process, NEPA, and the ESA Gary Matlock, this policy is fully consistent with their section 7 documents to the extent Acting Deputy Assistant Administrator for authority under the ESA and is based on possible. Fisheries, National Marine Fisheries Service. legislative history. Congress recognized 3. Establish joint policies and [FR Doc. 96–30610 Filed 11–29–96; 8:45 am] in enacting the habitat conservation procedures for FWS and NMFS. BILLING CODE 4310±55±P plan/incidental take provision in 4. Establish a low-effect HCP category BILLING CODE 3510±22±P section 10 of the ESA that ‘‘. . . the with expedited permit approval Secretary may utilize this provision [on procedures for small-landowner and HCPs] to approve conservation plans other low-impact projects. The new Bureau of Land Management which provide long-term commitments streamlined procedure would: regarding the conservation of listed as a. Categorically exclude low-effect [NM±030±1430±01; NMNM96514] well as unlisted species and long-term HCPs from NEPA requirements, Notice of Realty Action; Recreation assurances to the proponent of the b. Eliminate the requirement for and Public Purposes (R&PP) Act conservation plan that the terms of the Implementation Agreements for low- Classification; New Mexico plan will be adhered to and that further effect HCPs, and mitigation requirements will only be c. Eliminate Solicitor review of low- AGENCY: Bureau of Land Management imposed in accordance with the terms effect permit applications. (BLM), Interior. of the plan. In the event that an unlisted 5. Establish specific time-frame targets ACTION: Notice of realty action; R&PP species addressed in an approved for processing incidental take permit Act classification. conservation plan is subsequently listed applications once the application is pursuant to the Act, no further submitted for public comment and SUMMARY: The following public land in mitigation requirements should be approval (less than 3 months for low- Dona Ana County, New Mexico has 63858 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices been examined and found suitable for will become effective 60 days from the Reclamation, and the Department of classification for lease or conveyance to date of publication of this notice. Agriculture’s Forest Service. Once Las Cruces School District under the Classification Comments: Interested approved, this plan will guide provision of the R&PP Act, as amended parties may submit comments involving management activities for the BLM for (43 U. S. C. 869 et seq.). Las Cruces the suitability of the land for a Regional the next 10 to 15 years. The National School District proposes to use the land Park and Sports Complex. Comments on Park Service, Bureau of Reclamation for a Regional Park and Sports Complex. the classification are restricted to and U.S. Forest Service may approve T. 22 S., R. 2 E., NMPM whether the land is physically suited for this plan by continuing with this joint Sec. 11, lot 2, S1⁄2S1⁄2NE1⁄4, portion of the proposal, whether the use will planning effort and approving a Record S1⁄2S1⁄2NW1⁄4, E1⁄2SW1⁄4, NW1⁄4SW1⁄4, maximize the future use or uses of the of Decision, or may implement portions SE1⁄4. land, whether the use is consistent with of this plan by tiering to this document Containing 326.8 acres, more or less. local planning and zoning, or if the use within their own planning documents. is consistent with State and Federal DATES: Comments on this plan and DEIS DATES: Comments regarding the programs. proposed lease/conveyance or should be submitted in writing by Application Comments: Interested January 16, 1997. classification must be submitted on or parties may submit comments regarding before January 15, 1997. FOR FURTHER INFORMATION CONTACT: the specific use proposed in the Charles M. Schultz, Area Manager, ADDRESSES: Comments should be sent to application and plan of development, Bureau of Land Management, 355 the Bureau of Land Management, Las whether the BLM followed proper Cruces District Office, 1800 Marquess, Hemsted Drive, Redding, CA., 96002 administrative procedures in reaching (916) 224–2100. Las Cruces, New Mexico 88005. the decision, or any other factor not FOR FURTHER INFORMATION CONTACT: directly related to the suitability of the Dated: November 19, 1996. Marvin M. James at the address above or land for a Regional Park and Sports Kelly Williams, at (505) 525–4349. Complex. Acting Area Manager. SUPPLEMENTARY INFORMATION: Lease or Dated: November 22, 1996. [FR Doc. 96–30549 Filed 11–29–96; 8:45 am] conveyance will be subject to the Theresa M. Hanley, BILLING CODE 4310±40±M following terms, conditions, and Acting District Manager. reservations: [FR Doc. 96–30577 Filed 11–29–96; 8:45 am] [NV±930±1430±00; N±61315] 1. Provisions of the R&PP Act and to BILLING CODE 4310±VC±P all applicable regulations of the Notice of Proposed Withdrawal and Secretary of the Interior. Opportunity for Public Meeting; 2. All valid existing rights [CA±360±1220±00] Cancellation of Proposed Withdrawal; documented on the official public land Nevada records at the time of lease/patent Interlakes Special Recreation issuance. Management Area Plan and Draft AGENCY: Bureau of Land Management, 3. Applicant acknowledges the Environmental Impact Statement Interior. potential for hazardous materials on the (DEIS) ACTION: Notice. site and indemnifies the United States AGENCY: Bureau of Land Management SUMMARY: The Department of the Army, from any future liability. (BLM), Redding Resource Area, Corps of Engineers, has filed an 4. Applicant sets aside areas for the NORCAL District, California. application (N–61315) to withdraw drilling and maintenance of ground ACTION: Notice of availability of a plan 2,369.80 acres of public land for flood water monitoring wells. and DEIS. control facilities in Clark County, 5. All minerals shall be reserved to Nevada. This notice closes the lands for SUMMARY: BLM has released a plan and the United States, together with the up to 2 years from surface entry and DEIS covering land management options right to prospect for, mine, and remove mining. The Corps of Engineers has and anticipated consequences regarding the minerals. canceled the application (N–59007) that the Interlakes Special Recreation 6. Any other reservations that the was published in the 59 FR 60998, Management Area. Preparation of this authorized officer determines November 29, 1994. appropriate to ensure public access and plan and DEIS is a joint effort between DATES: proper management of Federal lands the BLM, U.S. Forest Service, National Comments and requests for and interests therein. Upon publication Park Service, and Bureau of meeting should be received on or before of this notice in the Federal Register, Reclamation. BLM was directed to lead March 3, 1997. the land will be segregated from all this planning effort under BLM’s Record ADDRESSES: Comments and meeting other forms of appropriation under the of Decision for the Redding Resource requests should be sent to the Nevada public land laws, including the general Management Plan and EIS which was State Director, BLM, 850 Harvard Way, mining laws, except for lease or prepared under the authority of the P.O. Box 12000, Reno, Nevada 89520. conveyance under the R&PP Act and Federal Land Policy and Management FOR FURTHER INFORMATION CONTACT: leasing under the mineral leasing laws. Act of 1976 (section 202). This plan and Dennis J. Samuelson, BLM Nevada State On or before January 15, 1997, DEIS is prepared under the authority of Office, 702–785–6532. interested persons may submit the National Environmental Policy Act SUPPLEMENTARY INFORMATION: On comments regarding the proposed lease/ of 1969. October 4, 1996, the Department of the conveyance or classification of the land SUPPLEMENTARY INFORMATION: The Army, Los Angeles District, Corps to the District Manager, Las Cruces Interlakes Special Recreation Engineers, filed an application to District Office, 1800 Marquess, Las Management Area is a 74,850 acre withdraw the following described Cruces, New Mexico 88005. Any region which encompasses lands public lands from settlement, sale, adverse comments will be reviewed by administered through the United States location, or entry under the general land the State Director. In the absence of any Department of the Interior’s BLM, laws, including the mining laws, subject adverse comments, the classification National Park Service, Bureau of to valid existing rights: Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63859

Mount Diablo Meridian Sec. 1, lots 11, 30, 43, 44, 46, 47, 56, 61, Sec. 34, SE1⁄4NE1⁄4NE1⁄4NE1⁄4, and 62, N1⁄2SW1⁄4NW1⁄4, SE1⁄4SE1⁄4NE1⁄4NE1⁄4, Area 1 N1⁄2NE1⁄4SE1⁄4NW1⁄4, NE1⁄4NE1⁄4SE1⁄4NE1⁄4, 1 1 1 1 1 1 1 1 T. 21 S., R. 59 E., NE1⁄4SW1⁄4SW1⁄4NW1⁄4, E ⁄2NE ⁄4NE ⁄4SE ⁄4, SE ⁄4SE ⁄4NE ⁄4SE ⁄4, 1 1 1 1 Sec. 3, lots 5 to 8, inclusive; NW1⁄4SE1⁄4SW1⁄4NW1⁄4, E ⁄2NE ⁄4SE ⁄4SE ⁄4, and 1 1 1 1 Sec. 36, lots 6, 7, and 19. NW1⁄4NE1⁄4SE1⁄4NW1⁄4, NE ⁄4SE ⁄4SE ⁄4SE ⁄4; 1 1 1 1 T. 21 S., R. 60 E., NW1⁄4NW1⁄4SE1⁄4NW1⁄4, and Sec. 35, NE ⁄4NE ⁄4NE ⁄4NE ⁄4, 1 1 1 1 1 1 1 1 Sec. 29, E ⁄2SE ⁄4NE ⁄4NW ⁄4, NW1⁄4NW1⁄4SW1⁄4SE1⁄4; NE ⁄4SE ⁄4NE ⁄4NE ⁄4, 1 1 1 1 1 1 1 1 W1⁄2NE1⁄4SE1⁄4NW1⁄4, Sec. 2, NW1⁄4SE1⁄4SE1⁄4SW1⁄4, NE ⁄4NE ⁄4SE ⁄4NE ⁄4, E ⁄2SE ⁄4SE ⁄4NE ⁄4, 1 1 1 1 E1⁄2SE1⁄4SE1⁄4NW1⁄4, SE1⁄4NW1⁄4SW1⁄4, N1⁄2NE1⁄4NE1⁄4SE1⁄4, and E ⁄2E ⁄2NE ⁄4SE ⁄4. E1⁄2SW1⁄4NE1⁄4SE1⁄4, E1⁄2E1⁄2SE1⁄4SE1⁄4, E1⁄2NW1⁄4NW1⁄4SE1⁄4, T. 22 S., R60 E., 1 1 1 1 E1⁄2NW1⁄4SE1⁄4SE1⁄4, SE1⁄4NE1⁄4SW1⁄4, W1⁄2SE1⁄4NW1⁄4SE1⁄4, and Sec. 2, lot 28, E ⁄2E ⁄2NE ⁄4SE ⁄4 and 1 1 1 1 W1⁄2SW1⁄4NE1⁄4SW1⁄4, NE1⁄4NW1⁄4SW1⁄4SE1⁄4; E ⁄2E ⁄2SE ⁄4NW ⁄4; 1 1 1 1 W1⁄2SE1⁄4SE1⁄4SW1⁄4, Sec. 4, SW1⁄4SW1⁄4NW1⁄4, Sec. 3, E ⁄2E ⁄2NE ⁄4SW ⁄4, 1 1 1 1 1 1 1 1 W1⁄2SW1⁄4SE1⁄4SW1⁄4, W1⁄2SE1⁄4SW1⁄4NW1⁄4, E ⁄2SE ⁄4SE ⁄4NW ⁄4, E ⁄2SE ⁄4SE ⁄4SW ⁄4, 1 1 1 1 E1⁄2NE1⁄4SW1⁄4SW1⁄4, and W1⁄2SW1⁄4NW1⁄4SW1⁄4, and and E ⁄2SE ⁄4NE ⁄4SE ⁄4; 1 1 1 1 E1⁄2SW1⁄4SW1⁄4SW1⁄4; W1⁄2W1⁄2SW1⁄4SW1⁄4; Sec. 4, E ⁄2SE ⁄4SE ⁄4NW ⁄4, 1 1 1 1 Sec. 32, E1⁄2NE1⁄4NE1⁄4NE1⁄4, Sec. 5, E1⁄2NE1⁄4SE1⁄4NE1⁄4; E ⁄2SE ⁄4NE ⁄4SW ⁄4, and 1 1 1 1 NW1⁄4NE1⁄4NE1⁄4, E1⁄2E1⁄2NW1⁄4NE1⁄4, Sec. 7, E1⁄2E1⁄2E1⁄2NE1⁄4, E ⁄2E ⁄2SW ⁄4SE ⁄4; 1 1 1 1 E1⁄2SW1⁄4NW1⁄4NE1⁄4, NW1⁄4SW1⁄4NE1⁄4, E1⁄2NE1⁄4NE1⁄4SE1⁄4, SE1⁄4NE1⁄4SE1⁄4, Sec. 9, E ⁄2SE ⁄4SE ⁄4NE ⁄4, 1 1 1 1 1 1 1 1 W1⁄2NE1⁄4SE1⁄4NW1⁄4, E1⁄2W1⁄2SE1⁄4SE1⁄4, and E1⁄2SE1⁄4SE1⁄4; E ⁄2E ⁄2SE ⁄4SE ⁄4, E ⁄2E ⁄2NE ⁄4NW ⁄4, 1 1 1 1 1 1 1 1 E1⁄2NW1⁄4SE1⁄4NW1⁄4, SW1⁄4SE1⁄4NW1⁄4, Sec. 8, W1⁄2SW1⁄4SW1⁄4NW1⁄4, E ⁄2NE ⁄4SE ⁄4NW ⁄4, E ⁄2SE ⁄4NE ⁄4SW ⁄4, 1 1 1 1 SE1⁄4SW1⁄4NW1⁄4, W1⁄2NW1⁄4NE1⁄4SW1⁄4, W1⁄2W1⁄2NW1⁄4SW1⁄4, and and E ⁄2NE ⁄4SE ⁄4SW ⁄4; 1 1 1 1 W1⁄2NE1⁄4NW1⁄4SW1⁄4, W1⁄2NW1⁄4SW1⁄4SW1⁄4; Sec. 10, E ⁄2SE ⁄4SE ⁄4NW ⁄4. W1⁄2SW1⁄4NW1⁄4SW1⁄4, and Sec. 9, W1⁄2W1⁄2NW1⁄4NW1⁄4, The areas described aggregate 2,369.80 W1⁄2NW1⁄4SW1⁄4SW1⁄4. W1⁄2NW1⁄4NW1⁄4SW1⁄4, acres in Clark County. W1⁄2NW1⁄4SW1⁄4SW1⁄4, Area 2 The purpose of the proposed E1⁄2SW1⁄4SW1⁄4SE1⁄4, SE1⁄4SW1⁄4SE1⁄4, withdrawal is for the Tropicana and T. 21 S., R. 59 E., N1⁄2SE1⁄4SE1⁄4, E1⁄2SW1⁄4SE1⁄4SE1⁄4, and Sec. 26, lots 1, 2, 3, 6, and 7; W1⁄2SE1⁄4SE1⁄4SE1⁄4; Flamingo Washes Flood Control Project Sec. 36, lots 21 and 23. Sec. 10, W1⁄2NE1⁄4NE1⁄4NE1⁄4, at Las Vegas, Nevada. T. 22 S., R. 59 E., SW1⁄4NE1⁄4NE1⁄4, E1⁄2SW1⁄4SW1⁄4NE1⁄4, For a period of 90 days from the date 1 1 1 1 1 1 Sec. 13, NE ⁄4, N ⁄2SE ⁄4, N ⁄2S ⁄2SE ⁄4, E1⁄2SE1⁄4SE1⁄4NW1⁄4, of publication of this notice, all persons 1 1 1 1 1 1 1 SW ⁄4SW ⁄4SE ⁄4, W ⁄2SE ⁄4SW ⁄4SE ⁄4, E1⁄2NW1⁄4NE1⁄4SW1⁄4, and who wish to submit comments, 1 1 1 1 1 1 1 E ⁄2SW ⁄4SE ⁄4SE ⁄4, SE ⁄4SE ⁄4SE ⁄4, W1⁄2SE1⁄4NW1⁄4SW1⁄4; suggestions, or objections in connection 1 1 1 1 1 1 1 E ⁄2NW ⁄4SE ⁄4SW ⁄4, NE ⁄4SE ⁄4SW ⁄4, Sec. 11, NE1⁄4NW1⁄4NW1⁄4; with the proposed withdrawal may 1 1 1 1 SE ⁄4NW ⁄4, and NE ⁄4SW ⁄4. Sec. 16, W1⁄2NW1⁄4NW1⁄4NE1⁄4, present their views in writing to the T. 21 S., R. 60 E., W1⁄2NE1⁄4NE1⁄4NW1⁄4, 1 1 1 Nevada State Director of the Bureau of Sec. 21, W ⁄2SE ⁄4NW ⁄4; E1⁄2NW1⁄4NE1⁄4NW1⁄4, 1 1 1 1 Land Management. Sec. 26, E ⁄2SW ⁄4SE ⁄4SW ⁄4 and E1⁄2SW1⁄4NW1⁄4NW1⁄4, SE1⁄4NW1⁄4NW1⁄4, 1 1 1 1 Notice is hereby given that an W ⁄2SE ⁄4SE ⁄4SW ⁄4; W1⁄2NE1⁄4SW1⁄4NW1⁄4, and 1 1 1 1 1 1 Sec. 27, N ⁄2NE ⁄4SW ⁄4, SW ⁄4NE ⁄4SW ⁄4, NW1⁄4SW1⁄4NW1⁄4; opportunity for a public meeting is 1 1 1 1 1 1 1 E ⁄2E ⁄2NW ⁄4SW, E ⁄2SW ⁄4NW ⁄4SW ⁄4, Sec. 17, S1⁄2SE1⁄4SW1⁄4NE1⁄4, afforded in connection with the 1 1 1 1 E ⁄2SW ⁄4SE ⁄4SW ⁄4, SW1⁄4SE1⁄4NE1⁄4, W1⁄2SE1⁄4SE1⁄4NE1⁄4, proposed withdrawal. All interested 1 1 1 1 W ⁄2SE ⁄4SE ⁄4SW ⁄4, E1⁄2NE1⁄4NE1⁄4SW1⁄4, SE1⁄4NE1⁄4SW1⁄4, person who desire a public meeting for 1 1 1 1 1 1 1 W ⁄2SW ⁄4NW ⁄4SE ⁄4, NW ⁄4SW ⁄4SE ⁄4, SE1⁄4SW1⁄4NE1⁄4SW1⁄4, N1⁄2SE1⁄4SW1⁄4, the purpose of being heard on the 1 1 1 1 1 1 SE ⁄4SW ⁄4SE ⁄4, and SW ⁄4SE ⁄4SE ⁄4; NE1⁄4SW1⁄4SW1⁄4, W1⁄2NW1⁄4SW1⁄4SW1⁄4, proposed withdrawal must submit a 1 1 1 1 1 1 Sec. 28, W ⁄2NE ⁄4SW ⁄4, SE ⁄4NE ⁄4SW ⁄4, W1⁄2SE1⁄4SW1⁄4SW1⁄4, SW1⁄4SW1⁄4SW1⁄4, 1 1 1 1 1 1 1 written request to the Nevada State NE ⁄4NW ⁄4SW ⁄4, W ⁄2SE ⁄4NW ⁄4SW ⁄4, NW1⁄4NE1⁄4SE1⁄4, N1⁄2NW1⁄2SE1⁄4, 1 1 Director within 90 days from the date of and S ⁄2SW ⁄4; W1⁄2SW1⁄4NW1⁄4SE1⁄4, and 1 1 1 1 publication of this notice. Upon Sec. 29, E ⁄2NE ⁄4NW ⁄4SW ⁄4 and W1⁄2NW1⁄4SW1⁄4SE1⁄4; E1⁄2NE1⁄4SW1⁄4NW1⁄4; Sec. 18, lots 5 to 25, inclusive, 29, 32 to determination by the authorized officer 1 1 1 1 Sec. 36, NW ⁄4NE ⁄4NE ⁄4NE ⁄4, 34, inclusive, and 36, W1⁄2W1⁄2E1⁄2NW1⁄4, that a public meeting will be held, a 1 1 1 1 1 1 1 S ⁄2NE ⁄4NE ⁄4NE ⁄4, NW ⁄4NE ⁄4NE ⁄4, E1⁄2W1⁄2NE1⁄4SW1⁄4, W1⁄2E1⁄2NE1⁄4SW1⁄4, notice of the time and place will be 1 1 1 1 N ⁄2SE ⁄4NE ⁄4NE ⁄4, E1⁄2SE1⁄4NE1⁄4SW1⁄4, published in the Federal Register at 1 1 1 1 W ⁄2SW ⁄4NE ⁄4NE ⁄4, W1⁄2NW1⁄4SE1⁄4SW1⁄4, least 30 days before the scheduled date 1 1 1 1 NW ⁄4NE ⁄4SE ⁄4NE ⁄4, W1⁄2NE1⁄4SE1⁄4SW1⁄4, SW1⁄4SE1⁄4SW1⁄4, of the meeting. 1 1 1 1 SE ⁄4NE ⁄4SE ⁄4NE ⁄4, E1⁄2NW1⁄4SW1⁄4SE1⁄4, SE1⁄4SW1⁄4SE1⁄4, The application will be processed in 1 1 1 1 1 1 1 1 SE ⁄4NW ⁄4SE ⁄4NE ⁄4, E ⁄2SW ⁄4SE ⁄4SE ⁄4, and accordance with the regulations set NE1⁄4SE1⁄4SE1⁄4NE1⁄4, 1 1 1 1 E ⁄2E ⁄2SE ⁄4SE ⁄4. forth in 43 CFR Part 2300. NW1⁄4NE1⁄4NE1⁄4SE1⁄4, T. 21 S., R. 61 E., For a period of 2 years from the date SE1⁄4NE1⁄4NE1⁄4SE1⁄4, Sec. 31, lots 39, 40, 41, 42, 43, 45, 47, 53, NE1⁄4NW1⁄4NE1⁄4SE1⁄4, 54, 56, and 57, of publication of this notice in the 1 1 1 1 NW ⁄4SW ⁄4NE ⁄4SE ⁄4, W1⁄2NW1⁄4NE1⁄4NE1⁄4NE1⁄4, Federal Register, the lands will be 1 1 1 1 SE ⁄4SW ⁄4NE ⁄4SE ⁄4, NE1⁄4NW1⁄4NE1⁄4NE1⁄4, segregated as specified above unless the 1 1 1 1 1 1 1 1 W ⁄2SE ⁄4NE ⁄4SE ⁄4, SE ⁄4SE ⁄4NE ⁄4SE ⁄4, E1⁄2NW1⁄4NW1⁄4NE1⁄4NE1⁄4, application is denied or canceled or the 1 1 1 1 SE ⁄4SW ⁄4SW ⁄4SE ⁄4, E1⁄2SW1⁄4NW1⁄4NE1⁄4NE1⁄4, withdrawal is approved prior to that 1 1 1 1 SE ⁄4NE ⁄4SW ⁄4SE ⁄4, S1⁄2NE1⁄4SE1⁄4NW1⁄4, W1⁄2SE1⁄4NW1⁄4, date. Other uses which will be 1 1 1 1 SW ⁄4NW ⁄4SE ⁄4SE ⁄4, W1⁄2SE1⁄4SE1⁄4NW1⁄4, permitted during this segregative period N1⁄2SW1⁄4SE1⁄4SE1⁄4, 1 1 1 1 1 E ⁄2SE ⁄4NW ⁄4NE ⁄4NE ⁄4, and are rights-of-way, leases, and permits. SE1⁄4SW1⁄4SE1⁄4SE1⁄4, 1 1 1 1 SW ⁄4NE ⁄4NE ⁄4SW ⁄4. The temporary segregation of the land NW1⁄4SE1⁄4SE1⁄4SE1⁄4, Lateral Collectors NW1⁄4NE1⁄4SW1⁄4SE1⁄4, in connection with a withdrawal E1⁄2SE1⁄4NW1⁄4SE1⁄4, and T. 21 S., R. 60 E., application shall not affect NW1⁄4SE1⁄4NW1⁄4SE1⁄4. Sec. 33, E1⁄2NE1⁄4NE1⁄4NE1⁄4, administrative jurisdiction over the T. 22 S., R. 60 E., E1⁄2NE1⁄4SE1⁄4NE1⁄4, and E1⁄2E1⁄2E1⁄2SE1⁄4; land, and the segregation shall not have 63860 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices the effect of authorizing any use of the Sec. 15, W1⁄2; State endangered desert bighorn sheep land by the Corps of Engineers. Sec. 16; habitat in the Ladrones Mountain Area The application published in the 59 Sec. 22, E1⁄2, N1⁄2NW1⁄4, SE1⁄4NW1⁄4, and of Critical Environmental Concern. This 1 1 FR 60998, November 29, 1994, as E ⁄2SW ⁄4. notice closes the Federal land for up to T. 5 S., R. 4 W., amended in the 60 FR 49006, September 2 years from surface entry and mining. Sec. 25, E1⁄2. 21, 1995; 60 FR 64177, December 14, The land will remain open to mineral The area described aggregates 5,607.52 1995; 60 FR 64446, December 15, 1995, acres in Socorro County, New Mexico. leasing. and 61 FR 13874, March 28, 1996, has DATES: Comments and requests for been canceled by the Corp of Engineers. For a period of 90 days from the date meetings should be received on or of publication of this notice, all persons Dated: November 25, 1996. before March 3, 1997. who wish to submit comments, ADDRESSES: Comments and meeting William K. Stowers, suggestions, or objections in connection requests should be sent to the Socorro Lands Team Lead. with the proposed withdrawal may Resource Area Manager, 198 Neel [FR Doc. 96–30580 Filed 11–29–96; 8:45 am] present their views in writing to the Avenue, Socorro, New Mexico 87801. BILLING CODE 4310±HC±P BLM Socorro Resource Area Manager. Notice is hereby given that an FOR FURTHER INFORMATION CONTACT: Lois opportunity for a public meeting is Bell, BLM, Socorro Resource Area DEPARTMENT OF INTERIOR afforded in connection with the Office, 198 Neel Ave., NW, Socorro, proposed withdrawal. All interested New Mexico 87801, or telephone (505) Bureau of Land Management persons who desire a public meeting for 835–0412. [NM±038±1110±00; NMNM95104] the purpose of being heard on the SUPPLEMENTARY INFORMATION: On proposed withdrawal must submit a November 22, 1996, a petition was Proposed Withdrawal and Opportunity written request to the BLM Socorro approved allowing the BLM to file an for Public Meeting; Devil's Backbone Resource Area Manager within 90 days application to withdraw the following Bighorn Sheep Habitat Area, New from the date of publication of this described public land from settlement, Mexico notice. Upon determination by the sale, location and entry under the authorized officer that a public meeting general land laws, including the mining AGENCY: Bureau of Land Management will be held, a notice of time and place laws, subject to valid existing rights: (BLM), Interior. will be published in the Federal New Mexico Principal Meridian ACTION: Notice. Register at least 30 days before the T. 2 N., R. 2 W., scheduled date of the meeting. SUMMARY: The BLM proposes to Sec. 2, lots 1 to 8, inclusive, S1⁄2N1⁄2, and The application will be processed in N1⁄2S1⁄2; withdraw 5,607.52 acres of public land accordance with the regulations set in Socorro County, New Mexico to Sec. 32, lots 1 to 4, inclusive, and forth in 43 CFR 2300. For a period of 2 W1⁄2SW1⁄4. protect State endangered desert bighorn years from the date of publication of this T. 3 N., R. 2 W., sheep habitat in the Devil’s Backbone notice in the Federal Register, the land Secs. 16, 32 and 36. Bighorn Sheep Habitat Area. This notice will be segregated as specified above T. 2 N., R. 3 W., closes the land for up to 2 years from unless the application is denied or Sec. 2, lot 4, S1⁄2N1⁄2, and S1⁄2; surface entry and mining. The land will canceled or the withdrawal is approved Sec. 16; remain open to mineral leasing. Sec. 36, SE1⁄4SW1⁄4 and NW1⁄4SE1⁄4. prior to that date. The temporary uses T. 3 N., R. 3 W., DATES: Comments and requests for a which will be permitted during this Sec. 36, N1⁄2SW1⁄4, NE1⁄4SE1⁄4, and public meeting should be received on or segregative period are leases, permits, W1⁄2SE1⁄4. before March 3, 1997. and rights-of-way. The area described aggregates 4,556.60 ADDRESSES: Comments and meeting Dated: November 22, 1996. acres in Socorro County. requests should be sent to the Socorro Josie Banegas, Resource Area Manager, 198 Neel The petition was also approved Acting District Manager. Avenue, Socorro, New Mexico 87801. allowing the BLM to file an application [FR Doc. 96–30578 Filed 11–29–96; 8:45 am] to withdraw the following described FOR FURTHER INFORMATION CONTACT: BILLING CODE 4310±VC±M non-Federal lands (private surface and Lois Bell, BLM, Socorro Resource Area private minerals). In the event the non- Office, 198 Neel Ave, NW, Socorro, New Federal lands (private surface and Mexico 87801, or telephone (505) 835– DEPARTMENT OF THE INTERIOR private minerals) return to Federal 0412. ownership, the lands would become SUPPLEMENTARY INFORMATION: On Bureau of Land Management subject to the withdrawal. November 22, 1996, a petition was approved allowing the BLM to file an [NM±038±1110±00; NMNM 95103] New Mexico Principal Meridian application to withdraw the following T. 3 N., R. 3 W., Proposed Withdrawal and Opportunity Sec. 36, SE1⁄4SE1⁄4. described public land from settlement, for Public Meeting; Ladrones Mountain sale, location and entry under the The area described aggregates 40.0 acres in Area of Critical Environmental Socorro County. general land laws, including the mining Concern, New Mexico laws, subject to valid existing rights: For a period of 90 days from the date New Mexico Principal Meridian AGENCY: Bureau of Land Management of publication of this notice, all persons (BLM), Interior. who wish to submit comments, T. 5 S., R. 3 W., suggestions, or objections in connection Sec. 16, lots 5 to 8, inclusive, N1⁄2, and ACTION: Notice. with the proposed withdrawal may N1⁄2S1⁄2; Secs. 21, 28, 29, and 32. SUMMARY: The BLM proposes to present their views in writing to the T. 6 S., R. 3 W., withdraw 4,556.60 acres of public land BLM Socorro Resource Area Manager. Sec. 4, lots 3 and 4, and SW1⁄4; and 40.0 acres of non-Federal land in Notice is hereby given that an Sec. 9, W1⁄2; Socorro County, New Mexico to protect opportunity for a public meeting is Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63861 afforded in connection with the and Infinity own and operate numerous acquisitions and future Joint Sales proposed withdrawal. All interested radio stations throughout the United Agreements, Local Marketing persons who desire a public meeting for States, and that they each own and Agreements or comparable the purpose of being heard on the operate stations in the Philadelphia, arrangements in Philadelphia and proposed withdrawal must submit a Pennsylvania and Boston, Boston. written request to the BLM Socorro Massachusetts metropolitan areas. This A Competitive Impact Statement filed Resource Area Manager within 90 days acquisition would give Westinghouse by the United States describes the from the date of publication of this control over more than 40 percent of the Complaint, the proposed Final notice. Upon determination by the radio advertising revenues in those Judgment, and remedies available to authorized officer that a public meeting metropolitan areas, as well as a private litigants. will be held, a notice of time and place substantial amount of control over Public comment is invited within the will be published in the Federal access to certain demographic groups of statutory 60-day comment period. Such Register at least 30 days before the radio listeners targeted by advertisers in comments, and the responses thereto, scheduled date of the meeting. The those metropolitan areas. As a result, will be published in the Federal application will be processed in the combination of these companies Register and filed with the Court. accordance with the regulations set would substantially lessen competition Written comments should be directed to forth in 43 CFR 2300. For a period of 2 in the sale of radio advertising time in Craig W. Conrath, Chief, Merger Task years from the date of publication of this the Philadelphia and Boston Force, Antitrust Division, 1401 H Street, notice in the Federal Register, the metropolitan areas. NW, Suite 4000, Washington, D.C. public land will be segregated as The prayer for relief seeks: (a) 20530 (telephone: 202–307–0001). specified above unless the application is Adjudication that Westinghouse’s Copies of the Complaint, Stipulation, denied or canceled or the withdrawal is proposed acquisition of Infinity would proposed Final Judgment and approved prior to that date. The violate Section 7 of the Clayton Act; (b) Competitive Impact Statement are temporary uses which will be permitted preliminary and permanent injunctive available for inspection in Room 215 of during this segregative period are leases, relief preventing the consummation of the Antitrust Division, Department of permits, and rights-of-way. the proposed acquisition; (c) an award Justice, 325 7th St., NW, Washington, D.C. 20530 (telephone: 202–514–2481), Dated: November 22, 1996. to the United States of the costs of this action; and (d) such other relief as is and at the office of the Clerk of the Josie Banegas, proper. United States District Court for the Acting District Manager. Shortly before this suit was filed, a District of Columbia, Third Street and [FR Doc. 96–30579 Filed 11–29–96; 8:45 am] proposed settlement was reached that Constitution Avenue, NW, Washington, BILLING CODE 4310±VC±P permits Westinghouse to complete its D.C. 20001. acquisition of Infinity, yet preserves Copies of any of these materials may competition in the markets in which the be obtained upon request and payment DEPARTMENT OF JUSTICE transaction would raise significant of a copying fee. competitive concerns. A Stipulation and Constance K. Robinson, Antitrust Division proposed Final Judgment embodying Director of Operation, Antitrust Division. the settlement were filed with the Court United States of America v. at the same time the Complaint was Stipulation and Order Westinghouse Electric Corporation filed. It is stipulated by and between the and Infinity Broadcasting Corporation; The proposed Final Judgment orders undersigned parties, by their respective Proposed Final Judgment and Westinghouse to divest WMMR–FM, attorneys, as follows: Competitive Impact Statement currently owned by Westinghouse, and (1) The Court has jurisdiction over the Notice is hereby given pursuant to the WBOS–FM, currently owned by subject matter of this action and over Antitrust Procedures and Penalties Act, Infinity, in Philadelphia and Boston, each of the parties hereto, and venue of 15 U.S.C. § 16(b)–(h), that a proposed respectively. Unless the United States this action is proper in the United States Final Judgment, Stipulation, and grants an extension of time, District Court for the District of Competitive Impact Statement have Westinghouse must divest these radio Columbia. been filed with the United States stations within six months after the (2) The defendants have agreed to District Court for the District of filing of the Final Judgment, or within waive the requirements of Fed. R. Civ. Columbia in United States v. five (5) business days after notice of P. 4 and to accept service of the Westinghouse Electric Corporation and entry of the Final Judgment, whichever Complaint herein by first class mail, Infinity Broadcasting Corporation, Civil is later. If Westinghouse does not divest addressed to their undersigned counsel Action No. 96–02563. The proposed these stations within the divestiture of record. Final Judgment is subject to approval by period, the Court may appoint a trustee available to it as a result of such delay, the Court after the expiration of the to sell the assets. The proposed Final provided that: (i) Defendants have statutory 60-day public comment period Judgment also requires the defendants entered into one or more definitive and compliance with the Antitrust to ensure that, until the divestitures agreements to divest the WMMR–FM Procedures and Penalties Act. 15 U.S.C. mandated by the Final Judgment have Assets and the WBOS–FM Assets, as § 16(b)–(h). been accomplished, WMMR–FM and defined in the Final Judgment, and such The United States filed a civil WBOS–FM will be operated agreements and the Acquirer or antitrust Complaint on November 12, independently as viable, ongoing Acquires have been approved by 1996, alleging that the proposed businesses, and kept separate and apart plaintiff; (ii) All papers necessary to acquisition of the Infinity Broadcasting from Westinghouse’s and Infinity’s secure any governmental approvals and/ Corporation (‘‘Infinity’’) by the other Philadelphia and Boston radio or rulings to effectuate such divestitures Westinghouse Electric Corporation stations, respectively. Further, the (including but not limited to FCC, SEC (‘‘Westinghouse’’) would violate Section proposed Final Judgment requires the and IRS approvals or rulings) have been 7 of the Clayton Act, 15 U.S.C. § 18. The defendants to give plaintiff prior notice filed with the appropriate agency; (iii) Complaint alleges that Westinghouse regarding future radio station Receipt of such approvals are the only 63862 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices closing conditions that have not been constituting any evidence against or an broadcast equipment, personal property, satisfied or waived; and (iv) Defendants admission by any party with respect to inventory, office furniture, fixed assets have demonstrated that neither they nor any issue of law or fact herein; and fixtures, materials, supplies and the prospective Acquirer or Acquirers And whereas, defendants have agreed other tangible property used in the are responsible for any such delay. to be bound by the provisions of this operation of that station; all licenses, (6) In the event the United States Final Judgment pending its approval by permits and authorizations and withdraws its consent, as provided in the Court; applications therefor issued by the paragraph 3 above, or if the proposed And whereas, the purpose of this Federal Communications Commission Final Judgment is not entered, this Final Judgment is prompt and certain (‘‘FCC’’) and other governmental Stipulation shall be of no effect divestiture of certain assets to assure agencies relating to that station; all whatever, and the making of this that competition is not substantially contracts, agreements, leases and Stipulation shall be without prejudice to lessened; commitments of Westinghouse any party in this or any other And whereas, plaintiff requires pertaining to that station and its proceeding. defendants to make certain divestitures operations; all trademarks, service (7) The defendants represent that the for the purpose of remedying the loss of marks, trade names, copyrights, patents, divestitures ordered in the proposed competition alleged in the Complaint: slogans, programming materials and Final Judgment can and will be made, And whereas, defendants have promotional materials relating to that and that the defendants will later raise represented to plaintiff that the station; and all logs and other records no claims of hardship or difficulty as divestitures ordered herein can and will maintained by Westinghouse or that grounds for asking the Court to modify be made and that defendants will later station in connection with its business. any of the divestiture provisions raise no claims of hardship or difficulty The WMMR–FM Assets do not include contained therein. as grounds for asking the Court to any trademarks, service marks, trade Dated: November 12, 1996. modify any of the divestiture provisions names, copyrights, patents, slogans, contained below; For Plaintiff United States of America: programming materials and promotional Now, therefore, before the taking of materials created by Westinghouse, or Dando B. Cellini, any testimony, and without trial or U.S. Department of Justice, Antitrust Division, its subsidiary CBS Inc., and used by adjudication of any issue of fact or law other radio stations, not solely by Merger Task Force, 1401 H Street, N.W., Suite herein, and upon consent of the parties 4000, Washington, D.C. 20005, (202) 307– WMMR–FM. For all assets used jointly 0829. hereto, it is hereby ordered, adjudged, by WMMR and KYW–AM or KYW TV and decreed as follows: For Defendant Westinghouse Electric prior to the divestiture required by this Corporation: I. Jurisdiction Final Judgment, defendants shall propose to the plaintiff, within 90 days Joe Sims, This Court has jurisdiction over each of the filing of this Final Judgment, a Jones, Day, Reavis & Pogue, 1450 G Street, of the parties hereto and over the subject plan for dividing such assets in a way N.W., Washington, D.C. 20005, (202) 879– matter of this action. The Complaint 3939. that, in plaintiff’s sole discretion, does states a claim upon which relief may be For Defendant Infinity Broadcasting not impair WMMR’s ability to attract granted against defendants Corporation: potential acquirers. Upon approval of Westinghouse and Infinity, as Daniel M. Abuhoff, the plan by plaintiff, the term ‘‘WMMR– hereinafter defined, under Section 7 of FM Assets’’ shall include only those Debevoise & Plimpton, 875 Third Avenue, the Clayton Act, as amended (15 U.S.C. New York, NY 10022, (212) 909–6000. assets allocated under the plan to § 18). So Ordered: WMMR. II. Definitions D. ‘‘WBOS–FM Assets’’ means all of United States District Judge As used in this Final Judgment: the assets, tangible or intangible, used in A. ‘‘Westinghouse’’ means defendant the operation of the WBOS 92.9 FM Certificate of Service Westinghouse Electric Corporation, a radio station in Boston, Massachusetts, I, Dando B. Cellini, hereby certify that, on Pennsylvania corporation with its including but not limited to: all real November 12, 1996, I caused the foregoing headquarters in Pittsburgh, property (owned and leased) used in the document to be served on defendants Pennsylvania, and includes its operation of that station; all broadcast Westinghouse Electric Corporation and successors and assigns, its subsidiaries equipment, personal property, Infinity Broadcasting Corporation by having (including CBS Inc.), and directors, inventory, office furniture, fixed assets a copy mailed, first-class, postage prepaid, to: officers, managers, agents and and fixtures, materials, supplies and Joe Sims, Jones, Day, Reavis & Pogue, employees acting for or on behalf of other tangible property used in the 1450 G St., N.W., Washington, D.C. Westinghouse. operation of that station; all licenses, 20005, Counsel for Westinghouse B. ‘‘Infinity’’ means defendant Infinity permits and authorizations and Electric Corporation Broadcasting Corporation, a Delaware applications therefor issued by the Daniel M. Abuhoff, Debevoise & corporation with its headquarters in Federal Communications Commission Plimpton, 875 Third Avenue, New New York, New York, and includes its (‘‘FCC’’) and other governmental York, NY 10022, Counsel for Infinity successors and assigns, its subsidiaries, agencies relating to that station; all Broadcasting Corporation and directors, officers, managers, agents contracts, agreements, leases and Dando B. Cellini. and employees acting for or on behalf of commitments of Infinity pertaining to Whereas, plaintiff, the United States Infinity. that station and its operations; all of America, having filed its Complaint C. ‘‘WMMR–FM Assets’’ means all of trademarks, service marks, trade names, herein on November 12, 1996, and the assets, tangible or intangible, used in copyrights, patents, slogans, defendants, by their respective the operation of the WMMR 93.3 FM programming materials and promotional attorneys, having consented to the entry radio station in Philadelphia, materials relating to that station; and all of this Final Judgment without trial or Pennsylvania, including but not limited logs and other records maintained by adjudication of any issue of fact or law to: all real property (owned and leased) Infinity or that station in connection herein, and without this Final Judgment used in the operation of that station; all with its business. For all assets used Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63863 jointly by WBOS and WOAZ–FM prior IV. Divestiture of WMMR–FM and Assets may be purchased as a two- to the divestiture required by this Final WBOS–FM station package or sold separately to Judgment, defendants shall propose to A. Defendants are hereby ordered and different purchasers. Defendants shall plaintiff, within 90 days of the filing of directed, in accordance with the terms also offer to furnish to all bona fide this Final Judgment, a plan for dividing of this Final Judgment, within six (6) prospective purchasers, subject to such assets in a way that, in the sole months after the filing of this Final customary confidentiality assurances, discretion of plaintiff, does not impair Judgment, or within five (5) business all information regarding the WMMR– WBOS’s ability to attract potential days after notice of entry of this Final FM Assets and the WBOS–FM Assets acquirers. Upon approval of the plan by Judgment, whichever is later, to divest customarily provided in a due diligence plaintiff, the term ‘‘WBOS–FM Assets’’ the WMMR–FM Assets and the WBOS– process, except such information that is shall include only those assets allocated FM Assets to one or two Acquirers subject to attorney-client privilege or under the plan to WBOS. acceptable to plaintiff, in its sole attorney work-product privilege. Defendants shall make available such E. ‘‘Philadelphia Area’’ means the discretion. Unless plaintiff otherwise information to plaintiff at the same time Philadelphia, Pennsylvania Metro consents in writing, the divestitures that such information is made available Survey Area as identified by The pursuant to Section IV of this Final to any other person. Arbitron Radio Market Report for Judgment, or by the trustee appointed Philadelphia (Summer 1996), which is D. Defendants shall permit bona fide pursuant to Section V, shall be prospective purchasers of the WMMR– made up of the following eight counties: accomplished in such a way as to satisfy Bucks, Montgomery, Chester, FM Assets and/or the WBOS–FM Assets plaintiff, in its sole discretion, that the to have access to personnel and to make Philadelphia, Delaware, Burlington, WMMR–FM Assets and the WBOS–FM Camden and Gloucester. such inspection of the assets, and any Assets can and will be used by an and all financial, operational or other F. ‘‘Boston Area’’ means the Boston, Acquirer or Acquirers as viable, ongoing Massachusetts Metro Survey Area as documents and information customarily commercial radio businesses. The provided as part of a due diligence identified by The Arbitron Radio Market divestitures, whether pursuant to Report for Boston (Summer 1996), process. Section IV or V of this Final Judgment, E. Defendants shall not interfere with which is made up of the following five shall be made (i) to an Acquirer or any efforts by any Acquirer or Acquirers counties: Essex, Middlesex, Suffolk, Acquirers that, in plaintiff’s sole to employ the general manager or any Norfolk and Plymouth. judgment, has or have the capability and employee of WMMR–FM or WBOS–FM. G. ‘‘Westinghouse Radio Station’’ intent of competing effectively, and has means any radio station owned by or have the managerial, operational and V. Appointment of Trustee Westinghouse or Infinity and licensed to financial capability to compete A. In the event that defendants have a community in either the Philadelphia effectively as radio station operators in not divested the WMMR–FM Assets and Area or the Boston Area, other than the Philadelphia Area and the Boston the WBOS–FM Assets within the time WMMR–FM in the Philadelphia Area Area; and (ii) pursuant to agreements periods specified in Section IV above, and WBOS–FM in the Boston Area. the terms of which shall not, in the sole the Court shall appoint, on application H. ‘‘Non-Westinghouse Radio Station’’ judgment of plaintiff, interfere with the of plaintiff, a trustee selected by means any radio station licensed to a ability of the purchaser(s) to compete plaintiff to effect the divestiture of the community in either the Philadelphia effectively. assets. Area or the Boston Area that is not a B. Defendants agree to use their best B. After the trustee’s appointment has Westinghouse Radio Station. efforts to divest the WMAR–FM Assets become effective, only the trustee shall I. ‘‘Acquirer’’ means the entity or and the WBOS–FM Assets, and to have the right to sell the WMMR–FM entities to whom defendants divest the obtain all regulatory approvals Assets and the WBOS–FM Assets. The WMMR–FM Assets and/or the WBOS– necessary for such divestitures, as trustee shall have the power and FM Assets under this Final Judgment. expeditiously as possible. Plaintiff, in authority to accomplish the divestitures its sole discretion, may extend the time at the best price then obtainable upon a III. Applicability period for the divestitures for two (2) reasonable effort by the trustee, subject A. The provisions of this Final additional thirty (30) day periods of to the provisions of Section V and VII Judgment apply to each of the time, not to exceed sixty (60) calendar of this Final Judgment and consistent defendants, their successors and days in total. with FCC regulations, and shall have assigns, their subsidiaries, affiliates, C. In accomplishing the divestitures other powers as the Court shall deem directors, officers, managers, agents and ordered by this Final Judgment, appropriate. Subject to Section V (C) of employees, and all other persons in defendants promptly shall make known, this Final Judgment, the trustee shall active concert or participation with any by usual and customary means, the have the power and authority to hire at of them who shall have received actual availability for sale of the WMMR–FM the cost and expense of defendants any notice of this Final Judgment by Assets and the WBOS–FM Assets. investment bankers, attorneys or other personal service or otherwise. Defendants shall inform any person agents reasonably necessary in the B. Each defendant shall require, as a making a bona fide inquiry regarding a judgment of the trustee to assist in the condition of the sale or other possible purchase that the sale is being divestitures, and such professionals or disposition of all or substantially all of made pursuant to this Final Judgment agents shall be solely accountable to the the assets used in its business of owning and provide such person with a copy of trustee. The trustee shall have the power and operating its portfolio of radio the Final Judgment. Defendants shall and authority to accomplish the stations in either the Philadelphia Area make known to any person making an divestitures at the earliest possible time or the Boston Area, that the acquiring inquiry regarding a possible purchase of to a purchaser acceptable to plaintiff, in party or parties agree to be bound by the the WMMR–FM Assets and/or the its sole judgment, and shall have such provisions of this Final Judgment; WBOS–FM Assets that the assets other powers as this Court shall deem provided, however, that defendants described in Section II (C) and (D) are appropriate. Defendants shall not object need not obtain such an agreement from being offered for sale and that the to the sale of the WMMR–FM and/or the an Acquirer, as defined herein. WMMR–FM Assets and the WBOS–FM WBOS–FM Assets by the trustee on any 63864 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices grounds other than the trustee’s filed in the public docket of the Court. to comply with Section IV and malfeasance. Any such objection by Such reports shall include the name, paragraphs C through F of this Section defendants must be conveyed in writing address and telephone number of each of the Final Judgment, the management to plaintiff and the trustee no later than person who, during the preceding of said station, including the fifteen (15) calendar days after the month, made an offer to acquire, performance of decision-making trustee has provided the notice required expressed an interest in acquiring, functions regarding marketing and under Section VIII of this Final entered into negotiations to acquire, or pricing, will be kept separate and apart Judgment. was contacted or made an inquiry about from, and not influenced by, C. The trustee shall serve at the cost acquiring, any interest in the WMMR– defendants. and expense of defendants, on such FM Assets and WBOS–FM Assets, and C. Defendants shall use all reasonable terms and conditions as the Court may shall describe in detail each contact efforts to maintain and increase sales of prescribe, and shall account for all with any such person during that advertising time by WMMR–FM, and monies derived from the sale of the period. The trustee shall maintain full shall maintain at 1995 or previously assets sold by the trustee and all costs records of all efforts made to divest approved levels for 1996, whichever are and expenses so incurred. After these operations. higher, promotional advertising, sales, approval by the Court of the trustee’s F. Within six (6) months after its marketing and merchandising support accounting, including fees for its appointment has become effective, if the for said station. services and those of any professionals trustee has not accomplished the D. Defendants shall use all reasonable and agents retained by the trustee, all divestiture required by Section IV of efforts to maintain and increase sales of remaining monies shall be paid to this Final Judgment, the trustee shall advertising time by WBOS–FM, and defendants and the trustee’s services promptly file with the Court a report shall maintain at 1995 or previously shall then be terminated. The setting forth (1) the trustee’s efforts to approved levels for 1996, whichever are compensation of such trustee and of any accomplish the required divestiture, (2) higher, promotional advertising, sales, professionals and agents retained by the the reasons, in the trustee’s judgment, marketing and merchandising support trustee shall be reasonable in light of the why the required divestitures have not for said station. value of the divestiture and based on a been accomplished, and (3) the trustee’s E. Defendants shall take all steps fee arrangement providing the trustee recommendations; provided, however, necessary to ensure that the assets used with an incentive based on the price that to the extent such reports contain in the operation of WMMR–FM are fully and terms of the divestitures and the information that the trustee deems maintained. WMMR–FM’s sales and speed with which they are confidential, such reports shall not be marketing employees shall not be accomplished. filed in the public docket of the Court. transferred or reassigned to any other D. Defendants shall take no action to The trustee shall at the same time station except for transfer bids initiated interfere with or impede the trustee’s furnish such reports to defendants and by employees pursuant to defendants’ accomplishment of the divestiture of the plaintiff, who shall each have the right regular established job posting polices, WMMR–FM Assets and the WBOS–FM to be heard and to make additional provided that defendants give plaintiff Assets, and shall use their best efforts to recommendations. The Court shall and Acquirer ten (10) days’ notice of assist the trustee in accomplishing the thereafter enter such orders as it shall any such transfer. required divestitures, including best deem appropriate to accomplish the F. Defendants shall take all steps efforts to effect all necessary regulatory purpose of this Final Judgment, which necessary to ensure that the assets used approvals. Subject to a customary shall, if necessary, include extending in the operation of WBOS–FM are fully confidentiality agreement, the trustee the term of the trustee’s appointment. maintained. WBOS–FM’s sales and shall have full and complete access to marketing employees shall not be VI. Preservation of Assets/Hold the personnel, books, records and transferred or reassigned to any other Separate facilities related to the WMMR–FM station, except for transfer bids initiated Asssets and the WBOS–FM Assets, and Until the divestiture of the WMMR– by employees pursuant to defendants’ defendants shall develop such financial FM Assets and the WBOS–FM Assets regular, established job posting polices, or other information as may be required by Section IV of the Final provided that defendants give plaintiff necessary to the divestiture of the Judgment has been accomplished: and Acquirer ten (10) days’ notice of WMMR–FM Assets and WBOS–FM A. Defendants shall take all steps any such transfer. Assets. Defendants shall permit necessary to ensure that WMMR–FM is G. Defendants shall not, except as part prospective purchasers of the WMMR– maintained as a separate, independent, of a divestiture approved by plaintiff, FM Assets and WBOS–FM Assets to ongoing, economically viable and active sell any WMMR–FM Assets or WBOS– have access to personnel and to make competitor to defendants’ other stations FM Assets. such inspection of physical facilities in Philadelphia and that, except as H. Defendants shall take no action and any and all financial, operational or necessary to comply with Section IV that would jeopardize the sale of the other documents and information as and paragraphs C through F of this WMMR–FM Assets or the WBOS–FM may be relevant to the divestitures Section of the Final Judgment, the Assets. required by this Final Judgment. management of said station, including I. Defendants shall each appoint a E. After its appointment becomes the performance of decision-making person or persons to oversee the assets effective, the trustee shall file monthly functions regarding marketing and to be held separate and who will be reports with defendants, plaintiff and pricing, will be kept separate and apart responsible for defendants’ compliance the Court, setting forth the trustee’s from, and not influenced by, with Section VI of this Final Judgment. efforts to accomplish divestiture of the defendants. Within two (2) business days WMMR–FM Assets and WBOS–FM B. Defendants shall take all steps following execution of a binding Assets as contemplated under this Final necessary to ensure that WBOS–FM is agreement to divest, including all Judgment; provided, however, that to maintained as a separate, independent, contemplated ancillary agreement (e.g., the extent such reports contain ongoing, economically viable and active financing), to effect in whole or in part, information that the trustee deems competitor to defendants’ other stations any proposed divestiture pursuant to confidential, such reports shall not be in Boston and that, except as necessary Section IV or V of this Final Judgment, Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63865 defendants or the trustee, whichever is affidavit as to the fact and manner of with any Non-Westinghouse Radio then responsible for effecting the their compliance with Section IV or V Station. divestiture, shall notify plaintiff of the of this Final Judgment. Each such Notification shall be provided to the proposed divestiture. If the trustee is affidavit shall include, inter alia, the United States Department of Justice in responsible, it shall similarly notify name, address and telephone number of the same format as, and per the defendants. The notice shall set forth each person who, at any time after the instructions relating to the Notification the details of the proposed transaction period covered by the last such report, and Report Form set forth in the and list the name, address and was contacted by defendants, or their Appendix to Part 803 of Title 16 of the telephone number of each person not representatives, made an offer to Code of Federal Regulations as previously identified who offered to, or acquire, expressed an interest in amended, except that the information expressed an interest in or a desire to, acquiring, entered into negotiations to requested in Items 5–9 of the acquire any ownership interest in the acquire, or made an inquiry about instructions must be provided only with WMMR–FM Assets or the WBOS–FM acquiring, any interest in the WMMR– respects to Westinghouse Radio Stations Assets, together with full details of FM Assets and/or the WBOS–FM in the city implicated by the transaction same. Within fifteen (15) calendar days Assets, and shall describe in detail each giving rise to the notification obligation of receipt by plaintiff of such notice, contact with any such person during under this Section X. Notification shall plaintiff may request from defendants, that period. Each such affidavit shall be provided at least thirty (30) days the proposed purchaser or purchasers, also include a description of the efforts prior to acquiring any such interest any other third party, or the trustee, if that defendants have taken to solicit a covered in (1) or (2) above, and shall applicable, additional information buyer or buyers for the WMMR–FM include, beyond what may be required concerning the proposed divestiture, the Assets and the WBOS–FM Assets. by the applicable instructions, the proposed purchaser, and any other B. Within twenty (20) calendar days names of the principal representatives potential purchaser. Defendants and the of the filing of this Final Judgment, of the parties to the agreements who trustee shall furnish any additional defendants shall deliver plaintiff an negotiated the agreement, and any information requested within fifteen affidavit which describes in reasonable management or strategic plans (15) calendar days of the receipt of the detail all actions defendants have taken discussing the propose transaction. If request. Within thirty (30) calendar days and all steps defendants have within the 30-days period after after receipt of the notice or within implemented on an on-going basis to notification, representatives of the twenty (20) calendar days after plaintiff preserve WMMR–FM and WBOS–FM Department make a written request for has been provided the additional pursuant to Section IV of this Final additional information, defendants shall information, whichever is later, plaintiff Judgment. Defendants shall deliver to not consummate the proposed shall provide written notice of plaintiff an affidavit describing any transaction or agreement until twenty defendants and the trustee, if there is changes to the efforts and actions (20) days after submitting all such one, stating whether or not it objects to outlined in their earlier affidavit(s) filed additional information. Early the proposed divestiture. If plaintiff fails pursuant to this Section within fifteen termination of the waiting periods in to object within the period specified, or (15) calendar days after such change is this paragraph may be requested and, if plaintiff provides written notice to implemented. where appropriate, granted in the same defendants and the trustee, if there is C. Defendants shall preserve all manner as is applicable under the one, that it does not object, then the records of all efforts made to preserve requirements and provisions of the HSR divestiture may be consummated, WMMR–FM and WBOS–FM and to Act and rules promulgated thereunder. subject only to defendants’ limited right divest the WMMR–FM Assets and the B. This Section shall be broadly to object to the sale under Section V(B) WBOS–FM Assets. construed and any ambiguity or of this Final Judgment. A divestiture X. Notice uncertainty regarding the filing of notice proposed under Section IV shall not be under this Section shall be resolved in consummated if plaintiff objects to the A. Unless such transaction is favor of filing notice. identity of the proposed purchaser or otherwise subject to the reporting an XI. Compliance Inspection purchasers. Upon objection by plaintiff, waiting period requirements of the Hart- or by defendants under the proviso in Scott-Antitrust Improvements Act of For the purpose of determining of Section V(B), a divestiture proposed 1976, as amended, 15 U.S.C. § 18a (the securing compliance with the Final under Section V shall not be ‘‘HSR Act’’), defendants, without Judgment and subject to any legally consummated unless approved by the providing advance notification to the recognized privilege, from time to time: Court. United States Department of Justice, A. Duly authorized representatives of shall not directly or indirectly: the plaintiff, including consultants and VIII. Financing (1) acquire any assets of or any other persons retained by the plaintiff, Defendants are ordered and directed interest, including any financial, shall, upon written request of the not to finance all or any part of any security, loan, equity or management United States Attorney General, or of purchase by an Acquirer made pursuant interest, in any Non-Westinghouse the Assistant Attorney General in charge to Sections IV or V of this Final Radio Station or any person affiliated of the Antitrust Division, and on Judgment without the prior written with any such Station; provided, reasonable notice to defendants made to consent of plaintiff. however, that defendants need not the principal offices, be permitted: provide notice under this provision for (1) Access during office hours of IX. Affidavits any direct or indirect acquisition of defendants to inspect and copy all A. Within twenty (20) calendar days equity of a Non-Westinghouse Radio books, ledgers, accounts, of the filing of this Final Judgment and Station that would result in defendants’ correspondence, memoranda and other every thirty (30) calendar days thereafter holding no more than five percent of the records and documents in the until the divestiture has been total equity of the station; or possession or under the control of completed, whether pursuant to Section (2) enter into any Joint Sales defendants, who may have counsel IV or Section V of this Final Judgment, Agreements, Local Marketing present, relating to any matters Defendants shall deliver to plaintiff an Agreements or comparable arrangement contained in this Final Judgment; and 63866 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

(2) Subject to the reasonable XIV. Public Interest The proposed Final Judgment orders convenience of defendants and without Westinghouse to divest WMMR–FM, Entry of this Final Judgment is in the currently owned by Westinghouse, and restraint or interference from them, to public interest. interview directors, officers, employees WBOS–FM, currently owned by Dated: lllllllllllllllll and agents of defendants, who may have Infinity, in Philadelphia and Boston, counsel present, regarding any such respectively. Unless the United States matters. United States District Judge grants an extension of time, B. Upon the written request of the Westinghouse must divest these radio COMPETITIVE IMPACT STATEMENT stations within six months after the United States Attorney General, or of filing of the Final Judgment, or within the Assistant Attorney General in charge Plaintiff, the United States of five (5) business days after notice of of the Antitrust Division, made to America, pursuant to Section 2(b) of the entry of the Final Judgment, whichever defendants’ principal offices, Antitrust Procedures and Penalties Act is later. If Westinghouse does not divest defendants shall submit such written (‘‘APPA’’), 15 U.S.C. § 16(b)–(h), files these stations within the divestiture reports, under oath if requested, with this Competitive Impact Statement period, the Court may appoint a trustee respect to any of the matters contained relating to the proposed Final Judgment to sell the assets. The proposed Final in this Final Judgment as may be submitted for entry in this civil antitrust proceeding. Judgment also requires the defendants requested. to ensure that, until the divestitures C. No information or documents I. Nature and Purpose of the Proceeding mandated by the Final Judgment have obtained by the means provided in this Plaintiff filed a civil antitrust been accomplished, WMMR–FM and Section XI shall be divulged by any Complaint on November 12, 1996, WBOS–FM will be operated representative of plaintiff to any person alleging that the proposed acquisition of independently as viable, ongoing other than a duly authorized the Infinity Broadcasting Corporation businesses, and kept separate and apart representative of the Executive Branch (‘‘Infinity’’) by the Westinghouse from Westinghouse’s and Infinity’s of the United States, except in the Electric Corporation (‘‘Westinghouse’’) other Philadelphia and Boston radio course of legal proceedings to which would violate Section 7 of the Clayton stations, respectively. Further, the plaintiff is a party (including grand jury Act, 15 U.S.C. § 18. The Complaint proposed Final Judgment requires the proceedings), or for the purpose of alleges that Westinghouse and Infinity defendants to give plaintiff prior notice securing compliance with this Final own and operate numerous radio regarding future radio station Judgment, or as otherwise required by stations throughout the United States, acquisitions in Philadelphia and Boston. law. and that they each own and operate The plaintiff and the defendants have D. If at the time information or radio stations in the Philadelphia, stipulated that the proposed Final documents are furnished by either Pennsylvania and Boston, Judgment may be entered after defendant to plaintiff, and such Massachusetts metropolitan areas. This compliance with the APPA. Entry of the defendant represents and identifies in acquisition would give Westinghouse proposed Final Judgment would writing the material in any such control over more than 40 percent of the terminate this action, except that the information or documents to which a radio advertising revenues in those Court would retain jurisdiction to claim of protection may be asserted metropolitan areas, as well as a construe, modify or enforce the provisions of the proposed Final under Rule 26(c)(7) of the Federal Rules substantial amount of control over Judgment and to punish violations of Civil Procedure, and such defendant access to certain demographic groups of thereof. marks each pertinent page of such radio listeners targeted by advertisers in material, ‘‘Subject to claim of protection those metropolitan areas. As a result, II. The Alleged Violation under Rule 26(c)(7) of the Federal Rules the combination of these companies A. The Defendants of Civil Procedure,’’ then ten (10) would substantially lessen competition calendar days’ notice shall be given by in the sale of radio advertising time in Westinghouse is a Pennsylvania plaintiff to such defendant prior to the Philadelphia and Boston corporation headquartered in divulging such material in any legal metropolitan areas. Pittsburgh, Pennsylvania. It currently proceeding (other than a grand jury The prayer for relief seeks: (a) owns, through its subsidiary CBS Inc., proceeding) to which such defendant is adjudication that Westinghouse’s 41 radio stations in 13 metropolitan not a party. proposed acquisition of Infinity would areas across the United States, including violate Section 7 of the Clayton Act; (b) four located in the Philadelphia XII. Retention of Jurisdiction preliminary and permanent injunctive metropolitan area and two located in the relief preventing the consummation of Boston metropolitan area. Jurisdiction is retained by this Court the proposed acquisition; (c) an award Westinghouse’s four radio stations in at any time for such further orders and to the United States of the costs of this the Philadelphia area are KYW–AM, directions as may be necessary or action; and (d) such other relief as is WMMR–FM, WOGL–FM and WPHT– appropriate for the construction, proper. AM; its two radio stations in the Boston implementation or modification of any Shortly before this suit was filed, a area are WBZ–AM and WODS–FM. In provisions of this Final Judgment, for proposed settlement was reached that 1995, its revenues from its Philadelphia the enforcement of compliance permits Westinghouse to complete its stations were appropriately $55,300,000, herewith, and for the punishment of any acquisition of Infinity, yet preserves and its revenues from its Boston stations violation hereof. competition in the markets in which the were approximately $26,600,000. XIII. Termination transaction would raise significant Infinity is a Delaware corporation competitive concerns. A Stipulation and headquartered in New York, New York. Unless this Court grants an extension, proposed Final Judgment embodying Infinity owns 42 radio stations in 13 this Final Judgment will expire upon the settlement were filed with the Court metropolitan areas across the United the tenth anniversary of the date of its at the same time the Complaint was States, including two located in the entry. filed. Philadelphia metropolitan area and four Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63867 located in the Boston metropolitan area. national representatives. Radio stations and more than 25 percent of all radio Infinity’s two radio stations in the generate almost all of their revenues advertising revenues in Boston. Philadelphia area are WYSP–FM and from the sale of advertising time to local Westinghouse’s market shares would WIP–AM; its four stations in the Boston and national advertisers. rise to approximately 45 percent in area are WBCN–FM, WZLA–FM, Many local and national advertisers Philadelphia and to more than 40 WBOS–FM and WOAZ–FM. In 1995, its purchase radio advertising time in percent in Boston after the proposed revenues from its Philadelphia stations Philadelphia and Boston because they merger. According to the Herfindahl- were approximately $31,500,000, and its find such advertising preferable to Hirschman Index (‘‘HHI’’), a widely- revenues from the Boston stations were advertising in other media to meet used measure of market concentration approximately $46,000,000. certain of their specific needs. For such defined and explained in Exhibit A advertisers, radio time: may be less annexed hereto, the pre-merger HHI in B. Description of the Events Giving Rise expensive and, on a per-dollar basis, Philadelphia is approximately 1876, to the Alleged Violation more cost-efficient than other media at which would rise to 2800 after the On June 20, 1996, Westinghouse reaching the advertiser’s target audience merger, with a change of about 924. In agreed to purchase Infinity for (individuals most likely to purchase the Boston, the pre-,merger HHI is approximately $4.9 billion. As is more advertiser’s products of services); may approximately 1875, which would rise fully discussed below, Westinghouse reach target audiences that cannot be to 2638 after the merger, with a change would control more than 40 percent of reached as effectively through other of about 763. These substantial the radio advertising revenues in media; or may offer promotional increases in concentration are likely to Philadelphia and in Boston, and could opportunities to advertisers that they reduce competition and lead to higher exercise substantial control over access cannot exploit as effectively using other prices and lower quality of service in to certain target audiences sought by media. For these reasons, may local and each of these markets. advertisers in those metropolitan areas. national advertisers in Philadelphia and Advertisers select radio stations to The proposed acquisition by Boston who purchase radio advertising reach a large percentage of their target Westinghouse of Infinity, and the time view radio either as a necessary audience based upon a number of threatened loss of competition that advertising medium for them, or as a factors, including, inter alia, the size of would be caused thereby, precipitated necessary advertising complement to the station’s audience and whether the the Government’s suit. other media. characteristics of its audience have a Although some local and national high correlation to the target audience of C. Anticompetitive Consequences of the advertisers may switch some of their the advertisers. If a number of stations Proposed Merger advertising to other media rather than efficiently reach that target audience, 1. Sale of Radio Advertising Time in the absorb a price increase in radio advertisers benefit from the competition Philadelphia and Boston MSAs advertising time in Philadelphia and among such stations, which leads to Boston, the existence of such advertisers better prices and services. Today, The Complaint alleges that the would not prevent radio stations from several Westinghouse and Infinity provision of advertising time on radio profitably raising their prices a small stations compete head-to-head to reach stations serving the Philadelphia, but significant amount. At a minimum, the same audiences and, for many local Pennsylvania Metro Survey Area stations could profitably raise prices to and national advertisers buying time in (‘‘MSA’’) and the Boston, Massachusetts those advertisers who view radio either Philadelphia and Boston, they are close MSA each constitute a line of commerce as a necessary advertising medium for substitutes for each other based on their and section of the country, of relevant them, or as a necessary advertising specific audience characteristics. The market, for antitrust purposes. These complement to other media. Radio proposed merger would eliminate this MSAs are the standard geographical stations, which negotiate prices competition, most critically affecting units for which Arbitron furnishes radio individually with advertisers, can advertisers seeking to reach male stations, advertisers and advertising identify those advertisers with strong listeners between the ages of 18 and 54 agencies in Philadelphia and Boston radio preferences. Consequently, radio in Philadelphia and Boston. with data to aid in evaluating radio stations can charge different advertisers During individual price negotiations audience size and composition. Local different rates. Because of this ability between advertisers and radio stations, and national advertising that is placed price discriminate between different advertisers provide the stations with on radio stations within the customers, radio stations may charge information about their advertising Philadelphia and Boston MSAs is aimed higher prices to advertisers that view needs, including their target audience at reaching listening audiences in those radio as particularly effective for their and the desired frequency and timing of MSAs, and radio stations outside of needs, while maintaining lower prices ads. Radio stations thus have the ability those MSAs do not provide effective for other advertisers. to charge advertisers differing prices access to those audiences. Thus, after assessing the number and advertisers would not buy enough 2. Harm to Competition attractiveness of alternative radio advertising time from radio stations The Complaint alleges that stations that can meet a particular located outside of the Philadelphia MSA Westinghouse’s proposed acquisition of advertiser’s specific target audience to defeat a small but significant non- Infinity would lessen competition needs. transitory increase in radio advertising substantially in the provision of radio In Philadelphia and Boston, prices within that MSA. Likewise, advertising time in the Philadelphia and advertisers that must reach male advertisers would not buy enough Boston MSAs. Westinghouse presently listeners within certain age ranges can advertising time from radio stations controls approximately 28 percent of all help ensure competitive rates by located outside of the Boston MSA to radio advertising revenues in ‘‘playing off’’ Infinity stations against defeat a small but significant non- Philadelphia and approximately 15 Westinghouse stations. Because the transitory increase in radio advertising percent of all radio advertising revenues direct competition between the prices within that MSA. in Boston. Infinity presently controls Westinghouse and the Infinity stations Radio advertising time is sold by approximately 16 percent of all radio would be eliminated by the proposed radio stations directly or through their advertising revenues in Philadelphia merger, and because advertisers seeking 63868 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices to reach male listeners between the ages radio advertising rates do not increase and WBOS–FM separate and apart from of 18 and 54 would have inferior and that services do not decline in their other stations, pending divestiture. alternatives to the merged entity, the Philadelphia and Boston as a result of The Judgment also contains provisions acquisition would give Westinghouse the acquisition. This relief will reduce to ensure that these stations will be the ability to raise prices and reduce the market share Westinghouse would preserved, so that they will remain quality. This is particularly true because have achieved through the merger from viable, aggressive competitors after of the merged entity’s ability to charge about 45 percent to about 37 percent in divestiture. different prices to different advertisers. the Philadelphia MSA, and from over 40 The proposed Final Judgment also If Westinghouse raised prices or percent to 36.5 percent in the Boston requires defendants to notify the lowered services to those advertisers MSA. plaintiff before acquiring any significant who buy time on Westinghouse and Unless the United States grants an interest in another Philadelphia or Infinity stations because of their extension of time, defendants must Boston radio station. Such acquisitions strength in delivering access to certain divest WMMR–FM and WBOS–FM could raise competitive concerns but audiences, non-Westinghouse radio within six months after the Final might be too small to be otherwise stations in Philadelphia and Boston Judgment has been filed, or within five reported under the Hart-Scott-Rodino would not be induced to change their (5) business days after notice of entry of (‘‘HSR’’) premerger notification formats to attract those audiences in this Final Judgment, whichever is later. requirements. sufficiently large numbers to defeat a Until the divestitures take place, these Moreover, defendants are also price increase. Successful radio stations stations, now owned by Westinghouse required to notify the plaintiff before are unlikely to undertake a format and Infinity, respectively, will be they enter into any Joint Sales change solely in response to small but maintained as independent competitors Agreements (‘‘JSAs’’), where one station significant increases in price being to the other stations in the Philadelphia takes over another station’s advertising charged to advertisers by a multi-station and Boston MSAs, respectively, time, or enter into any Local Marketing firm such as Westinghouse, because including the other Westinghouse and Agreements (‘‘LMAs’’), where one they would likely lose a substantial Infinity stations in those markets. station takes over another station’s portion of their existing audiences. Even If Westinghouse fails to divest either broadcasting and advertising time, or if less successful stations did change or both of these stations within the time any other comparable arrangements, in format, they would still be unlikely to period specified in the Final Judgment, the Philadelphia or Boston areas. attract enough listeners to provide or any extension thereof, the Court, Agreements whereby defendants sell suitable alternatives to the merged upon application of the plaintiff, shall advertising for or manage other entity. appoint a trustee nominated by the Philadelphia or Boston area radio New entry into the Philadelphia and plaintiff to effect the required stations would effectively increase their Boston radio advertising markets is divestiture or divestitures. If a trustee is market share in such MSA. Despite their highly unlikely in response to a price appointed, the proposed Final Judgment clear competitive significance, JSAs increase by the merged entity. No provides that defendants will pay all probably would not be reportable to the unallocated radio broadcast frequencies costs and expenses of the trustee and plaintiff under the HSR Act. Thus, this exist in Philadelphia and Boston. Also, any professionals and agents retained by provision in the decree ensures that the stations located in adjacent the trustee. The compensation paid to plaintiff will receive notice of, and be communities cannot boost their power the trustee and any persons retained by able to stop, any agreements that could so as to enter the Philadelphia and the trustee shall be both reasonable in have anticompetitive effects in the Boston MSAs without interfering with light of the value of WMMR–FM and Philadelphia or Boston markets. other stations on the same or similar WBOS–FM, and shall be based on a fee The relief in the proposed Final frequencies, a violation of Federal arrangement providing the trustee with Judgment is intended to remedy the Communications Commission (‘‘FCC’’) an incentive based on the price and likely anticompetitive effects of the regulations. terms of the divestitures and the speed proposed acquisition of Infinity by For these reasons, the plaintiff with which they are accomplished. Westinghouse. Nothing in this Final concludes that the merger as proposed After appointment, the trustee will file Judgment is intended to limit the would substantially lessen competition monthly reports with the plaintiff, the plaintiff’s ability to investigate or bring in the sale of radio advertising time in defendants and the Court, setting forth actions, where appropriate, challenging the Philadelphia and Boston MSAs, the trustee’s efforts to accomplish the other past or future activities of eliminate actual competition between divestitures ordered under the proposed defendants in the Philadelphia and Westinghouse and Infinity, and result in Final Judgment. If the trustee has not Boston MSAs, including their entry into increased prices and reduced quality of accomplished the divestitures within any JSAs, LMAs or any other service for buyers of radio advertising six (6) months after its appointment, the agreements related to the sale of time in those markets, all in violation of trustee shall promptly file with the advertising time. Section 7 of the Clayton Act. Court a report setting forth (1) the trustee’s efforts to accomplish the IV. Remedies Available to Potential III. Explanation of the Proposed Final required divestitures, (2) the reasons, in Private Litigants Judgment the trustee’s judgment, why the required Secion 4 of the Clayton Act, 15 U.S.C. The proposed Final Judgment would divestitures have not been § 15, provides that any person who has preserve competition in the sale of radio accomplished, and (3) the trustee’s been injured as result of conduct advertising time in the Philadelphia and recommendations. At the same time, the prohibited by the antitrust laws may Boston MSAs. It requires the divestiture trustee will furnish such report to the bring suite in federal court to recover of WMMR–FM in Philadelphia and plaintiff and defendants, who will each three times the damages the person has WBOS–FM in Boston. The divestitures have the right to be heard and to make suffered, as well as costs and reasonable will preserve choices for advertisers, additional recommendations consistent attorneys’ fees. Entry of the proposed particularly for those seeking to reach with the purpose of the trust. Final Judgment will neither impair nor male listeners between the ages of 18 The proposed Final Judgment requires assist the bringing of any private and 54. They will also help ensure that that defendants maintain WMMR–FM antitrust damage action. Under the Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63869 provisions of Section 5(a) of the Clayton expense and uncertainty of a full trial United States v. Mid-America Act, 15 U.S.C. § 16(a), the proposed on the merits of the Complaint. Dairymen, Inc., 1977–1 Trade Case. Final Judgment has no prima facie effect ¶ 61,508, at 71,980 (W.D. Mo. 1977). VII. Standard of Review Under the in any subsequent private lawsuit that Accordingly, with respect to the APPA for Proposed Final Judgment may be brought against defendants. adequacy of the relief secured by the The APPA requires that proposed decree, a court may not ‘‘engage in an V. Procedures Available for consent judgments in antitrust cases unrestricted evaluation of what relief Modification of the Proposed Final brought by the United States be subject would best serve the public.’’ United Judgment to a sixty (60) day comment period, after States v. BNS, Inc., 858 F.2d 456, 462 The plaintiff and the defendants have which the court shall determine (9th Cir. 1988), citing United States v. stipulated that the proposed Final whether entry of the proposed Final Bechtel Corp., 648 F.2d 660, 666 (9th Judgment may be entered by the Court Judgment ‘‘is in the public interest.’’ In Cir.), cert. denied, 454 U.S. 1083 (1981); after compliance with the provisions of making that determination, the court see also Microsoft, 56 F.3d at 1460–62. the APPA, provided that the plaintiff may consider— Precedent requires that has not withdrawn its consent. The (1) the competitive impact of such the balancing of competing social and APPA conditions entry upon the Court’s judgment, including termination of alleged political interests affected by a proposed determination that the proposed Final violations, provisions for enforcement and antitrust consent decree must be left, in the Judgment is in the public interest. modification, duration or relief sought, first instance, to the distance of the Attorney The APPA provides a period of at anticipated effects of alternative remedies General. The court’s role in protecting the actually considered, and any other public interest is one of insuring that the least sixty (60) days preceding the considerations bearing upon the adequacy of effective date of the proposed Final government has not breached its duty to the such judgment; public in consenting to the decree. The court Judgment within which any person may (2) the impact of entry of such judgment is required to determine not whether a submit to the plaintiff written comments upon the public generally and individuals particular decree is the one that will best regarding the proposed Final Judgment. alleging specific injury from the violations serve society, but whether the settlement is Any person who wishes to comment set forth in the complaint including ‘‘within the reaches of the public interest,’’ should do so within sixty (60) days of consideration of the public benefit, if any, to More elaborate requirements might the date of publication of this be derived from a determination of the issues undermine the effectiveness of antitrust at trial. Competitive Impact Statement in the enforcement by consent decree.2 Federal Register. The plaintiff will 15 U.S.C. § 16(e). As the United States The proposed Final Judgment, therefore, evaluate and respond to the comments. Court of Appeals for the D.C. Circuit should not be reviewed under a All comments will be given due recently held, this statute permits a standard of whether it is certain to consideration by the Department of court to consider, among other things, eliminate every anticompetitive effect of Justice, which remains free to withdraw the relationship between the remedy a particular practice or whether it its consent to the proposed Final secured and the specific allegations set mandates certainty of free competition Judgment at any time prior to its entry. forth in the government’s complaint, in the future. Court approval of a final The comments and the response of the whether the decree is sufficiently clear, judgment requires a standard more plaintiff will be filed with the Court and whether enforcement mechanisms are flexible and less strict than the standard published in the Federal Register. sufficient, and whether the decree may required for a finding of liability. ‘‘[A] Any such written comments should positively harm third parties. See proposed decree must be approved even be submitted to: Craig W. Conrath, United States v. Microsoft, 56 F.3d 1448, if it falls short of the remedy the court Chief, Merger Task Force, Antitrust 1461–62 (D.C. Cir. 1995). would impose on its own, as long as it Division, United States Department of In conducting this inquiry, ‘‘[t]he falls within the range of acceptability or Justice, 1401 H Street, N.W., Suite 4000, Court is nowhere compelled to go to is ‘within the reaches of public 3 Washington, D.C. 20530. trial or to engage in extended interest.’ ’’ The proposed Final Judgment proceedings which might have the effect This is strong and effective relief that provides that the Court retains of vitiating the benefits of prompt and should fully address the competitive less costly settlement through the harm posed by the proposed merger. jurisdiction over this action, and the 1 parties may apply to the Court for any consent decree process.’’ Rather, [a]bsent a showing of corrupt failure of the VIII. Determinative Documents order necessary or appropriate for the government to discharge its duty, the Court, There are no determinative materials modification, interpretation or in making its public interest finding, should or documents within the meaning of the enforcement of the Final Judgment. ** * carefully consider the explanations of APPA that were considered by the VI. Alternatives to the Proposed Final the government in the competitive impact plaintiff in formulating the proposed statement and its responses to comments in Judgment order to determine whether those Final Judgment. The plaintiff considered, as an explanations are reasonable under the Dated: November 14, 1996. alternative to the proposed Final circumstances. Judgment, a full trial on the merits of its 2 Bechtel, 648 F.2d at 666 (citations 1 119 Cong. Rec. 24598 (1973). See United States omitted)(emphasis added); see BNS, 858 F.2d at Complaint against defendants. The v. Gillette Co., 406 F. supp. 713, 715 (D. Mass. 463; United States v. National Broadcasting Co., plaintiff is satisfied, however, that the 1975). A ‘‘public interest’’ determination can be 449 F. Supp. 1127, 1143 (C.D. Cal. 1978); Gillette, divestiture of WMMR–FM and WBOS– made properly on the basis of the Competitive 406 F. Supp. at 716. See also Microsoft, 56 F.3d at FM and other relief contained in the Impact Statement and Responses to Comment filed 1461 (whether ‘‘the remedies [obtained in the pursuant to the APPA. Although the APPA decree are] so inconsonant with the allegations proposed Final Judgment will preserve authorizes the use of additional procedures, 15 charged as to fall outside of the ‘reaches of the viable competition in the sale of radio U.S.C. § 16(f), those procedures are discretionary. A public interest’ ’’) (citations omitted). advertising time in the Philadelphia and court need not invoke any of them unless it believes 3 United States v. American Tel. and Tel Co., 552 Boston MSAs. Thus, the proposed Final that the comments have raised significant issues F. Supp. 131, 151 (D.D.C. 1982), aff’d. sub nom, and that further proceedings would aid the court in Maryland v. United States, 460 U.S. 1001 (1983), Judgment would achieve the relief the resolving those issues. See H.R. Rep. 93–1463, 93rd quoting Gillette Co., 406 F. Supp. at 716 (citations Government would have obtained Cong. 2d Sess. 8–9 (1974), reprinted in U.S.C.C.A.N. omitted); United States v. Alcan Aluminum, Ltd., through litigation, but avoids the time, 6535, 6538. 605 F. Supp. 619, 622 (W.D. Ky. 1985). 63870 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Respectfully submitted, DEPARTMENT OF LABOR Welfare Benefits Administration, 200 Dando B. Cellini, Constitution Avenue, NW., Washington, Merger Task Force, U.S. Department of Pension and Welfare Benefits DC 20210, (202) 219–7933, FAX (202) Justice, Antitrust Division, 1401 H Street NW., Administration 219–4745. Suite 4000, Washington, DC 20530, (202) 307– SUPPLEMENTARY INFORMATION: 0829. Proposed Information Collection Request Submitted for Public I. Background EXHIBIT A—Definition of HHI and Comment and Recommendations; Calculations for Market Prohibited Transaction Class Prohibited Transaction Class Exemption 91±38 Exemption 91–38 provides an ‘‘HHI’’ means the Herfindahl- exemption from the prohibited Hirschman Index, a commonly accepted ACTION: Notice. transaction provisions of ERISA for measure of market concentration. It is certain transactions between a bank SUMMARY: calculated by squaring the market share The Department of Labor, as collective investment fund and persons of each firm competing in the market part of its continuing effort to reduce who are parties in interest with respect paperwork and respondent burden, and then summing the resulting to a plan as long as the plan’s provides the general public and Federal numbers. For example, for a market participation in the collective agencies with an opportunity to consisting of four firms with shares of investment fund does not exceed a comment on proposed and/or thirty, thirty, twenty and twenty specified percentage of the total assets continuing collections of information in percent, the HHI is 2600 (302 2 in the collective investment fund. In + 30 + accordance with the Paperwork 202 + 202 = 2600). The HHI takes into order to ensure that the exemption is Reduction Act of 1995 (PRA 95) (44 not abused, that the rights of account the relative size and U.S.C. 3506(c)(2)(A)). This program distribution of the firms in a market and participants and beneficiaries are helps to ensure that requested data can protected, and that compliance with the approaches zero when a market consists be provided in the desired format, of a large number of firms of relatively exemption’s conditions are taking place, reporting burden (time and financial DOL has required that records regarding equal size. The HHI increases both as resources) is minimized, collection the number of firms in the market the exempted transactions be instruments are clearly understood, and maintained for six years. decreases and as the disparity in size the impact of collection requirements on between those firms increases. respondents can be properly assessed. II. Current Actions Markets in which the HHI is between Currently, the Pension and Welfare This existing collection of information 1000 and 1800 points are considered to Benefits Administration is soliciting should be continued because without be moderately concentrated, and those comments concerning the proposed the exemption, individuals or entities in which the HHI is in excess of 1800 extension of a currently approved which are parties in interest of a plan points are considered to be collection of information, Prohibited that invests in a bank collective concentrated. Transactions that increase Transaction Class Exemption 91–38. A investment fund would not be able to the HHI by more than 100 points in copy of the proposed information engage in transactions with the concentrated markets presumptively collection request can be obtained by collective investment fund and would, raise antitrust concerns under the contacting the employee listed below in thus, create a potential hardship to Merger Guidelines. See Merger the contact section of this notice. those affected. For DOL to grant an Guidelines § 1.51. DATES: Written comments must be exemption, however, it needs to assure submitted on or before January 31, 1997. Certificate of Service that the plan’s participants and The Department of Labor is particularly beneficiaries are protected. It, therefore, I, Dando B. Cellini, hereby certify interested in comments which: included certain conditions in the that, November 15, 1996, I caused a * evaluate whether the proposed exemption, and required that records be copy of the foregoing Competitive collection of information is necessary kept for six years from the date of the Impact Statement filed this day in for the proper performance of the transaction so that it can be determined United States v. Westinghouse functions of the agency, including whether these conditions have been Broadcasting Corporation and Infinity whether the information will have followed. Without such records, DOL Broadcasting Corporation, Civil Action practical utility; and other interested parties, such as No. 1:96CV02563 (NHJ), to be served on * evaluate the accuracy of the participants, would be unable to defendants Westinghouse Broadcasting agency’s estimate of the burden of the effectively enforce the terms of the Corporation and Infinity Broadcasting proposed collection of information, exemption and ensure user compliance. Corporation by having a copy mailed, including the validity of the Type of Review: Extension first class, postage prepaid, to: methodology and assumptions used; Agency: Pension and Welfare Benefits * enhance the quality, utility, and Administration Joe Sims, Jones, Day, Reavis & Pogue, clarify the information to be collected; Title: Prohibited Transaction Class 1450 G St., N.W., Washington, D.C. and Exemption 91–38 20005, Counsel for Westinghouse * minimize the burden of the OMB Number: 1210–0082 Electric Corporation collection of information on those who Affected Public: Business or other for- Daniel M. Abuhoff, Debevoise & are to respond, including through the profit, Not-for-profit institutions, Plimpton, 875 Third Avenue, New use of appropriate automated, Individuals York, NY 10022, Counsel for Infinity electronic, mechanical, or other Frequency: On occasion Broadcasting Corporation. technological collection techniques or Estimated Total Burden Hours: 1 other forms of information technology, Respondents, proposed frequency of Dated: November 15, 1996. e.g., permitting electronic submissions response, and annual hour burden: Dando B. Cellini, of responses. Under ERISA regulation section [FR Doc. 96–30550 Filed 11–29–96; 8:45 am] ADDRESSEE: Gerald B. Lindrew, 2520.103–9, banks sponsoring collective BILLING CODE 4410±±M Department of Labor, Pension and investment funds are required to Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63871 maintain certain records each year for contacting the employee listed below in separate account creating a potential preparing the annual report or to be the contact section of this notice. hardship to those affected. For the supplied to the plan sponsor to prepare DATES: Written comments must be Department to grant an exemption, the annual report. In addition, banks are submitted on or before January 31, 1997. however, it needs to assure that the highly regulated by state and federal The Department of Labor is particularly plan’s participants and beneficiaries are law, and their books and records are interested in comments which: protected. It, therefore, included certain subject to periodic examination by state * evaluate whether the proposed conditions in the exemption, and and federal agencies. Because of the collection of information is necessary required that records be kept for six ERISA annual reporting requirements for the proper performance of the years from the date of the transaction so and the heavy state and federal functions of the agency, including that it can be determined whether these regulation, the Department has assumed whether the information will have conditions have been followed. Without that the records required by this class practical utility; such records the Department and other exemption are the same records kept in * evaluate the accuracy of the interested parties, such as participants, the normal course of business by banks. agency’s estimate of the burden of the would be unable to effectively enforce Therefore, the burden of this exemption proposed collection of information, the terms of the exemption and insure is minimal, and the Department has including the validity of the user compliance. assigned one hour to it. methodology and assumptions used; Type of Review: Extension Total Burden Cost (capital/start-up): * enhance the quality, utility, and Agency: Pension and Welfare Benefits $0.00 clarify the information to be collected; Administration Total Burden Cost (operating/ and Title: Prohibited Transaction Class maintenance): $0.00 * minimize the burden of the Exemption 90–1 Comments submitted in response to collection of information on those who OMB Number: 1210–0083 this notice will be summarized and/or are to respond, including through the included in the request for Office of Affected Public: Business or other for- use of appropriate automated, profit, Not-for-profit institutions, Management and Budget approval of the electronic, mechanical, or other information collection request; they will Individuals technological collection techniques or Frequency: On occasion also become a matter of public record. other forms of information technology, Estimated Total Burden House: 1 Dated: November 26, 1996. e.g., permitting electronic submissions of responses. Respondents, proposed frequency of Gerald B. Lindrew, response, and annual hour burden: ADDRESSES: Director, Pension and Welfare Benefits Gerald B. Lindrew, Under ERISA regulation section Administration, Office of Policy and Department of Labor, Pension and 2520.103–9, insurance companies Legislative Analysis. Welfare Benefits Administration, 200 administering pooled separate accounts [FR Doc. 96–30605 Filed 11–29–96; 8:45 am] Constitution Avenue, NW, Washington, are required to maintain certain records BILLING CODE 4510±29±M D.C. 20210, (202) 219–7933, FAX (202) each year for preparing the annual 219–4745. report or to be supplied to the plan sponsor to prepare the annual report. In Proposed Information Collection FOR FURTHER INFORMATION CONTACT: addition, insurance companies are Request Submitted for Public I. Background highly regulated by State law, and their Comment and Recommendations; Prohibited Transaction Class books and records are subject to Prohibited Transaction Class Exemption 90–1 provides an exemption periodic examination by State agencies. Exemption 90±1 from certain of ERISA’s prohibited Because of the ERISA annual reporting ACTION: Notice. transaction provisions for transactions requirements and the heavy State involving insurance company pooled regulation, the Department has assumed SUMMARY: The Department of Labor, as separate accounts in which employee that the records required by this class part of its continuing effort to reduce benefit plans participate. The general exemption are the same records kept in paperwork and respondent burden, exemption allows persons who are the normal course of business by provides the general public and Federal parties in interest of a plan that invests insurance companies. Therefore, the agencies with an opportunity to in a pooled separate account to engage burden of this exemption is minimal, comment on proposed and/or in transactions with the separate and the Department has assigned one continuing collections of information in account if the plan’s participation in the hour to it. accordance with the Paperwork separate account does not exceed Total Burden Cost (capital/start-up): Reduction Act of 1995 (PRA 95) (44 specified limits. In order to ensure that $0.00 U.S.C. 3506(c)(2)(A)). This program the exemption is not abused, that the Total Burden Cost (operating/ helps to ensure that requested data can rights of participants and beneficiaries maintenance): $0.00 be provided in the desired format, are protected, and that compliance with Comments submitted in response to reporting burden (time and financial the exemptions conditions are taking this notice will be summarized and/or resources) is minimized, collection place, DOL has required that records included in the request for Office of instruments are clearly understood, and regarding the exempted transactions be Management and Budget approval of the the impact of collection requirements on maintained for six years. information collection request; they will respondents can be properly assessed. also become a matter of public record. Currently, the Pension and Welfare II. Current Actions Benefits Administration is soliciting This existing collection of information Dated: November 26, 1996. comments concerning the proposed should be continued because without Gerald B. Lindres, extension of a currently approved the exemption, individuals or entities Director, Pension and Welfare Benefits collection of information, Prohibited which are parties in interest of a plan Administration, Office of Policy and Transaction Class Exemption 90–1. A that invests in an insurance company Legislative Analysis. copy of the proposed information pooled separate account would not be [FR Doc. 96–30606 Filed 11–29–96; 8:45 am] collection request can be obtained by able to engage in transactions with the BILLING CODE 4510±29±M 63872 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Proposed Information Collection SUPPLEMENTARY INFORMATION: recordkeeping requirements of this Request Submitted for Public I. Background exemption are similar to those included Comment and Recommendations; in Part C of Prohibited Transaction Class Prohibited Transaction Class Prohibited Transaction Class Exemption 76–1 (PTE 76–1). The Exemption 77±10 Exemption 77–10 enables a multiple Department assumes that anyone employer plan to share office space and utilizing this exemption would also ACTION: Notice. administrative services and goods, to need to use PTE 76–1. The Department lease office space or provide estimates that the recordkeeping burden SUMMARY: The Department of Labor, as administrative services or to sell or lease of this class exemption, in effect, has part of its continuing effort to reduce goods to a participating employer, or been incorporated in the burden for PTE paperwork and respondent burden, participating employer association, or to 76–1. Therefore, the Department provides the general public and Federal another multiple employer plan, estimates the burden hours for this agencies with an opportunity to provided certain conditions are met. In exemption to be one hour. comment on proposed and/or the absence of this exemption, certain Total Burden Cost (capital/start-up): continuing collections of information in aspects of these transactions might be $0.00. accordance with the Paperwork prohibited by section 406(b)(2) of the Total Burden Cost (operating/ Reduction Act of 1995 (PRA 95) (44 Employee Retirement Income Security maintenance): $0.00. U.S.C. 3506(c)(2)(A)). This program Act of 1974 (the Act). Comments submitted in response to helps to ensure that requested data can II. Current Actions this notice will be summarized and/or be provided in the desired format, included in the request for Office of reporting burden (time and financial This existing collection of information Management and Budget approval of the resources) is minimized, collection should be continued because without information collection request; they will instruments are clearly understood, and the exemption, participating unions or also become a matter of public record. the impact of collection requirements on employers would not be able to share or respondents can be properly assessed. lease office space or to share or obtain Dated: November 26, 1996. Currently, the Pension and Welfare administrative services or goods from a Gerald B. Lindrew, Benefits Administration is soliciting plan in cases where violations of section Director, Pension and Welfare Benefits comments concerning the proposed 406(b)(2) of ERISA would otherwise Administration, Office of Policy and extension of a currently approved occur. Plans which would be denied the Legislative Analysis. collection of information, Prohibited opportunity to utilize such services [FR Doc. 96–30607 Filed 11–29–96; 8:45 am] Transaction Class Exemption 77–10. A might incur additional administrative BILLING CODE 4510±29±M copy of the proposed information costs as well as possibly lose a source collection request can be obtained by of income. The recordkeeping contacting the employee listed below in requirements incorporated within the FEDERAL MINE SAFETY AND HEALTH the contact section of this notice. class exemption are intended to protect REVIEW COMMISSION the interests of plan participants and DATES: Written comments must be Date: November 18, 1996. beneficiaries. The exemption has one submitted on or before January 31, 1997. TIME AND DATE: basic information collection condition. 3:00 p.m., Monday, The Department of Labor is particularly November 18, 1996. interested in comments which: A plan which shares office space, PLACE: Room 6005, 6th Floor, 1730 K * evaluate whether the proposed administrative services or goods or Street, N.W., Washington, D.C. collection of information is necessary which provides administrative services for the proper performance of the or goods is required to maintain during STATUS: Closed [Pursuant to 5 U.S.C. functions of the agency, including the time of the transactions and for six § 552b(c)(10)]. whether the information will have years from the time of termination such MATTERS TO BE CONSIDERED: It was practical utility; records as are necessary to enable the determined by a unanimous vote of the * evaluate the accuracy of the Labor Department, plan participants and Commissioners that the Commission agency’s estimate of the burden of the beneficiaries, participating employers consider and act upon the following in proposed collection of information, and others to determine whether the closed session: including the validity of the conditions of the exemption have been 1. McClanahan v. Wellmore Coal Corp., methodology and assumptions used; met. The records should indicate the Docket No. VA 95–9–D. * enhance the quality, utility, and potential conflict of interest present in a transaction, such as where a plan No earlier announcement of the clarify the information to be collected; scheduling of this meeting was possible. and trustee involved in the decision is also CONTACT PERSON FOR MORE INFORMATION: * minimize the burden of the an officer of a contributing employer Jean Ellen, (202) 653–5629/(202) 708– collection of information on those who who would benefit from the provision of 9300 for TDD Relay/1–800–877–8339 are to respond, including through the certain services. for toll free. use of appropriate automated, Type of Review: Extension Agency: Pension and Welfare Benefits Jean H. Ellen, electronic, mechanical, or other Administration. technological collection techniques or Chief Docket Clerk. Title: Prohibited Transaction Class other forms of information technology, [FR Doc. 96–30731 Filed 11–27–96; 12:43 Exemption 77–10. e.g., permitting electronic submissions pm] OMB Number: 1210–0081. BILLING CODE 6735±01±M of responses. Affected Public: Business or other for- ADDRESSES: Gerald B. Lindrew, profit, Not-for-profit institutions, Department of Labor, Pension and Individuals. Date: November 25, 1996. Welfare Benefits Administration, 200 Frequency: On occasion. TIME AND DATE: 10:00 a.m., Thursday, Constitution Avenue, NW., Washington, Estimated Total Burden Hours: 1. December 5, 1996. DC 20210, (202) 219–7933, FAX (202) Respondents, proposed frequency of PLACE: Room 6005, 6th Floor, 1730 K 219–4745. response, and annual hour burden: The Street, N.W., Washington, D.C. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63873

STATUS: Open. Other current issues and new may be contacted: Patricia Campbell, MATTERS TO BE CONSIDERED: The business 301–415–1311; Joseph Colaccino, 301– Commission will consider and act upon The meeting is open to the public. 415–2753. the following: This notice is published less than 15 The agenda of the workshops is as calendar days before the meeting 1. Secretary of Labor v. Walker Stone Co., follows: because of scheduling difficulties. Docket No. CENT 94–97–M (Issues include Public Workshops on Inservice Testing whether the judge was correct in holding 30 Dated: November 25, 1996. Inspection Procedure 73756 CFR § 56.14105 to be inapplicable because L. Reynolds Cahoon, the phrase ‘‘repairs or maintenance of Assistant Archivist for Policy and IRM 8:30–9:00 a.m. machinery or equipment’’ contained therein Services. Welcoming, Introductions (Regional does not encompass the act of removing from a rock crusher rocks which are jamming it.) [FR Doc. 96–30601 Filed 11–29–96; 8:45 am] representatives) BILLING CODE 7515±01±M 9:00–10:00 a.m. Any person attending this meeting Presentation on the content of IP who requires special accessibility 73756, GL 89–04, Supplement 1, features and/or auxiliary aids, such as NUCLEAR REGULATORY NUREG–1482, NUREG/CR–6396 (P. sign language interpreters, must inform COMMISSION Campbell/J. Colaccino) the Commission in advance of those 10:00–10:15 a.m. needs. Subject to 29 CFR § 2706. Inservice Testing Inspection Procedure Break 150(a)(3) and § 2706.160(d). 73756; Workshops CONTACT PERSON FOR MORE INFORMATION: 10:15–10:30 a.m. Jean Ellen, (202) 653–5629/(202) 708– The U.S. Nuclear Regulatory Presentation on Generic Letter 96–05 9300 for TDD Relay/1–800–877–8339 Commission (NRC) will conduct four Periodic Verification of Motor- for toll free. public workshops pertaining to the July Operated Valves 27, 1995, revision to NRC Inspection Jean H. Ellen, OM Code Case OMN–1 as an Procedure (IP) 73756, ‘‘Inservice Testing Chief Docket Clerk. Alternative to Stroke of Pumps and Valves.’’ The workshops [FR Doc. 96–30732 Filed 11–27–96; 12:43 will be conducted by the Mechanical Timing MOVs (T. Scarbrough/S. pm] 1 Engineering Branch, Division of Tingen/Region) BILLING CODE 6735±01±M Engineering, Office of Nuclear Reactor 10:30–11:00 a.m. Regulation, in conjunction with the Presentation on Types of Findings Regional Offices. from Recent IST Inspections (J. NATIONAL ARCHIVES AND RECORDS The workshops will be conducted Colaccino—from Symposium paper, ADMINISTRATION from 8:30 a.m. to 5:00 p.m. at the updated with any additional following locations on the following inspections since July 1996, with Advisory Committee on the Records of dates: assistance from Regional Congress; Meeting January 21, 1997 representatives) AGENCY: National Archives and Records Hilton Hotel (block of rooms 11:00 a.m.–12:00 Noon Administration. reserved), 3003 Corporate W Drive, Questions and Answers Breakout ACTION: Notice of meeting. Lisle, Illinois 60532, 630–505–0900 Session (NRR and Regional Region III Contact: Andrew Dunlop, representatives) SUMMARY: In accordance with the 630–829–9726 Noon–1:00 p.m. Federal Advisory Committee Act, the January 23, 1997 Lunch Break National Archives and Records NRC Region IV Offices, 611 Ryan 1:00–3:00 p.m. Administration (NARA) announces a Plaza Drive, Suite 400, Arlington, meeting of the Advisory Committee on Texas 76011–8064 Questions and Answers Session the Records of Congress. The committee Region IV Contact: Dale A. Powers, (Panel of NRR and Regional advises NARA on the full range of 817–860–8195 representatives) programs, policies, and plans for the February 4, 1997 3:00–3:15 p.m. Center for Legislative Archives in the Valley Forge Hilton, 251 West DeKalb Break Office of Special and Regional Archives. Pike, King of Prussia, PA 19406, 3:15–5:00 p.m. Questions and Answers DATES: December 9, 1996, from 9:00 a.m. 610–337–1200/800–TRY-VFPA Session Continued (Panel) Region I Contact: Kenneth Kolaczyk, to 10:30 a.m. Signed at Rockville, Maryland, this 25th ADDRESSES: United States Capitol 610–337–5327 day of November, 1996. February 6, 1997 Building, LBJ Room (S–211). For the Nuclear Regulatory Commission. Richard B. Russell Building, FOR FURTHER INFORMATION CONTACT: Auditorium (Lower Plaza), 75 Richard H. Wessman, Michael L. Gillette, Director, Center for Spring Street, S.W., Atlanta, Chief, Mechanical Engineering Branch, Legislative Archives, (202) 501–5350. Georgia 30303, 404–331–3333 Division of Engineering, Office of Nuclear Reactor Regulation. SUPPLEMENTARY INFORMATION: Region II Contact: McKenzie Thomas, 404–331–5599 [FR Doc. 96–30592 Filed 11–29–96; 8:45 am] Agenda BILLING CODE 7590±01±P Opening Remarks The public is invited to submit Workshops for House Committee questions or specific topics for 1 This presentation is narrowly focused to provide Clerks discussion at the workshops. Questions a summary only and to make the IST engineers Task Force on the Impact of or topics should be submitted to Patricia aware that the NRC has identified an acceptable Technology on Archival Campbell, U.S. Nuclear Regulatory alternative to the current Code requirements for Commission, Mail Stop O7E23, stroke timing MOVs. A more detailed discussion of Documentation Washington, D.C. 20555. For further the generic letter will be provided at the Motor- Modern Records Survey information, the following individuals Operated Valve Users’ Group Meeting tentatively scheduled for February 3, 4, and 5 in Atlanta. 63874 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

PENSION BENEFIT GUARANTY New Penalty Policy resulted from circumstances beyond CORPORATION The new penalty policy applies for that person’s control. plan years beginning on or after January Issued in Washington, DC, this 27th day of Payment of Premiums; Late Payment November, 1996. Penalty Charges 1, 1996. The PBGC will assess a penalty of 1% per month if the premium is paid Robert B. Reich, AGENCY: Pension Benefit Guaranty on or before the date the PBGC issues Chairman, Board of Directors, Pension Benefit Corporation. a written notice to the premium payer Guaranty Corporation. ACTION: Statement of Policy. that there is or may be a premium Issued on the date set forth above pursuant delinquency. If the premium is paid to a resolution of the Board of Directors SUMMARY: The Pension Benefit Guaranty after the PBGC notification date, the authorizing its Chairman to issue this Corporation is adopting a new two- penalty rate will be 5% per month for statement of policy. tiered policy on penalties for late all months. The minimum total penalty James J. Keightley payment of premiums due for 1996 and continues to be $25. PBGC notification Secretary, Board of Directors, Pension Benefit later plan years. The new policy, which may take various forms, including a Guaranty Corporation. lowers penalties from 5% per month to premium bill, a letter initiating a [FR Doc. 96–30778 Filed 11–29–96; 8:45 am] 1% per month if a premium payer premium compliance review (i.e., BILLING CODE 7708±01±P corrects an underpayment before being audit), or a letter questioning a failure contacted by the PBGC, is designed to to make a premium filing. promote voluntary compliance. The SECURITIES AND EXCHANGE Voluntary Compliance Program PBGC is also adopting a temporary COMMISSION voluntary compliance program to The PBGC is adopting a temporary provide penalty relief with respect to voluntary compliance program for Issuer Delisting; Notice of Application premiums due for earlier plan years. premiums owed for pre-1996 plan years. to Withdraw From Listing and DATES: The new policy is effective with The penalty rate will be 1% per month Registration; (AMREP Corporation, respect to premiums owed for plan (subject to the existing $25 minimum Common Stock, $.10, Par Value) File years beginning on or after January 1, total penalty), rather than the current No. 1±4702 1996. The voluntary compliance 5% per month. November 25, 1996. program applies with respect to There are two ways to take advantage AMREP Corporation (‘‘Company’’) has premiums owed for pre-1996 plan years. of the voluntary compliance program: To take advantage of the program, filed an application with the Securities Option 1: Pay the underpaid amount and Exchange Commission premium payers must take action by with an appropriate premium filing by April 30, 1997. (‘‘Commission’’), pursuant to Section April 30, 1997. 12(d) of the Securities Exchange Act of FOR FURTHER INFORMATION CONTACT: Option 2: Notify the PBGC by April 1934 (‘‘Act’’) and Rule 12d2–2(d) Harold J. Ashner, Assistant General 30, 1997, of an intention to participate promulgated thereunder, to withdraw Counsel, Office of the General Counsel, in the voluntary compliance program, the above specified security (‘‘Security’’) Pension Benefit Guaranty Corporation, and pay the underpaid amount with the from listing and registration on the 1200 K Street, NW., Washington, DC appropriate premium filing by June 30, Chicago Stock Exchange, Inc. (‘‘CHX’’) 20005–4026; 202–326–4024 (202–326– 1997. (Any penalties and interest will and Pacific Stock Exchange, Inc. 4179 for TTY and TDD). For questions continue to accrue until payment.) The (‘‘PSE’’). about specific premium filings under notification must be in writing and The reasons alleged in the application the voluntary compliance program, call identify the plan. for withdrawing the Security from 202–326–4061 (202–326–4179 for TTY To be eligible for the program, the listing and registration include the and TDD); for other questions about payment under Option 1 or the following: specific premium filings, call 703–827– notification under Option 2 (as According to the Company, the 3676 (202–326–4179 for TTY and TDD). applicable) must precede the PBGC application is made for the purpose of SUPPLEMENTARY INFORMATION: Section notification date. All notices, original or reducing costs for the Company. 4007 of the Employee Retirement amended premium forms, and payments Because of the small volume of trading, Income Security Act of 1974 authorizes under the voluntary compliance the Company has decided to delist from the PBGC to assess a late payment program should be clearly marked ‘‘VCP the CHX and PSE. The Security is and penalty charge for underpayment or late PROGRAM’’ and filed at the following will continue to be listed on the New payment of premiums. The amount of address: Pension Benefit Guaranty York Stock Exchange, Inc. (‘‘NYSE’’). the penalty may not exceed 100% of the Corporation, ATTN: VCP PROGRAM, Any interested person may, on or premium that is not timely paid. P.O. Box 64880, Baltimore, MD 21264– before December 17, 1996, submit by The PBGC’s premium payment 4880 (if filing by mail) or First National letter to the Secretary of the Securities regulation provides that the penalty Bank of Maryland, ATTN: VCP and Exchange Commission, 450 Fifth accrues at the rate of 5% of the unpaid PROGRAM, 110 South Paca Street, Mail Street, N.W., Washington, D.C. 20549, amount each month, subject to a floor of Code: 109–320/Lockbox #64880, facts bearing upon whether the $25 on the total amount. The PBGC may Baltimore, MD 21201 (if filing by application has been made in grant a waiver of all or a portion of the delivery service). accordance with the rules of the penalty upon a demonstration of good exchanges and what terms, if any, Assessment and Waiver of Penalties cause. The regulation also requires the should be imposed by the Commission payment of interest on premium The PBGC may waive all or part of a for the protection of investors. The underpayments. late payment penalty upon a Commission, based on the information The general guidelines in the new demonstration of good cause. The PBGC submitted to it, will issue an order penalty policy and voluntary will evaluate each request for a waiver granting the application after the date compliance program discussed below to determine whether the responsible mentioned above, unless the affect only penalties. They do not affect person exercised ordinary business care Commission determines to order a interest. and prudence and the late payment hearing on the matter. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63875

For the Commission, by the Division of Applicant’s Representations under Massachusetts law. Boston Market Regulation, pursuant to delegated Mutual is in the process of withdrawing authority. 1. BML Account, a unit investment trust, is a separate account of the Boston or terminating BML Account’s legal Jonathan G. Katz, Mutual Life Insurance Company existence in any states in which BML Secretary. (‘‘Boston Mutual’’). On December 29, Account is registered. [FR Doc. 96–30563 Filed 11–29–96; 8:45 am] 1978, BML Account filed with the For the Commission, by the Division of BILLING CODE 8010±01±M Commission a notification of Investment Management, pursuant to registration as an investment company delegated authority. [Rel. No. IC±22348; File No. 811±2892] on Form N–8A, and a registration Margaret H. McFarland, statement on Form S–6 (File No. 2– Deputy Secretary. Boston Mutual Life Variable Account 63340) to register under the Securities [FR Doc. 96–30565 Filed 11–29–96; 8:45 am] A; Notice of Application Act of 1933 interests in individual BILLING CODE 8010±01±M flexible purchase payment variable November 22, 1996. annuity contracts issued by Boston AGENCY: Securities and Exchange Mutual through BML Account. The Issuer Delisting; Notice of Application Commission (‘‘SEC’’ or ‘‘Commission’’). registration statement was declared to Withdraw From Listing and ACTION: Notice of Application for an effective on May 1, 1981. Registration; (Kirby Corporation, order under the Investment Company 2. Boston Mutual deposited $100,000 Common Stock, $0.10 Par Value) File Act of 1940 (‘‘1940 Act’’). of ‘‘seed money’’ in BML Account. All No. 1±7615 of that seed money was invested in APPLICANT: Boston Mutual Life Variable Money Market Management, Inc., a November 25, 1996. Account A (‘‘BML Account’’). money market investment company. Kirby Corporation (‘‘Company’’) has RELEVANT 1940 ACT SECTION: Order 3. Boston Mutual decided to filed an application with the Securities requested under Section 8(f) of the 1940 withdraw from the variable annuity and Exchange Commission Act. business after fewer than 100 of its (‘‘Commission’’), pursuant to Section SUMMARY OF APPLICATION: Applicant variable annuity contracts were sold. 12(d) of the Securities Exchange Act of seeks an order declaring that it has Full refunds were offered to all 1934 (‘‘Act’’) and Rule 12d2–2(d) ceased to be an investment company, as contractholders and by early 1982 all promulgated thereunder, to withdraw defined by the 1940 Act. contractholders had accepted refunds. the above specified security (‘‘Security’’) FILING DATE: The application was filed Boston Mutual has not issued any from listing and registration on the on March 25, 1996, and amended and variable annuity contracts through BML American Stock Exchange, Inc. restated on July 26, 1996. Account since 1982, and does not (‘‘Amex’’). The reasons alleged in the application HEARING OR NOTIFICATION OF HEARING: An intend to offer variable annuity order granting the application will be contracts issued through BML Account for withdrawing the Securities from issued unless the Commission orders a for sale in the future. listing and registration include the hearing. Interested persons may request 4. On December 7, 1995, the Board of following: According to the Company, it has a hearing by writing to the Secretary of Directors of Boston Mutual authorized listed the Security with the New York the SEC and serving Applicant with a the liquidation of Boston Mutual’s seed Stock Exchange, Inc. (‘‘NYSE’’). Trading copy of the request, in person or by money in the BML Account, and in the Security on the NYSE mail. Hearing requests should be authorized certain offices to execute and commenced at the opening of business received by the SEC by 5:30 p.m. on file deregistration and liquidation on October 15, 1996, and concurrently December 17, 1996, and should be documents with the appropriate therewith such stock was suspended accompanied by proof of service on authorities. from trading on the Amex. In making Applicant in the form of an affidavit or, 5. BML Account disposed of its the decision to withdraw the Security for lawyers, a certificate of service. portfolio securities through the from listing on the Amex, the Company Hearing requests should state the nature liquidation of Boston Mutual’s seed considered the direct and indirect costs of the requestor’s interest, the reason for money by redemption, for $100,000 in and expenses attendant on maintaining the request, and the issues contested. cash, of 100,000 shares of Money Market the dual listing of the Security on the Persons may request notification of a Management, Inc. No brokerage commissions were charged. The NYSE and the Amex. The Company hearing by writing to the Secretary of does not see any particular advantage in the SEC. proceeds ($100,000) were returned to Boston Mutual on December 20, 1995. the dual trading of the Security and ADDRESSES: Secretary, SEC, 450 5th 6. BML Account currently has no believes that dual listing would Street, N.W., Washington, D.C. 20549. assets or liabilities, and no fragment the market for its Security. Applicant, James F. Sarcia, Boston securityholders or accountholders. BML Any interested person may, on or Mutual Life Insurance Company, 120 Account is not a party to any litigation before December 17, 1996, submit by Royall Street, Canton, Massachusetts or administrative proceeding, and is not letter to the Secretary of the Securities 02021–1028. now engaged, nor does it intend to and Exchange Commission, 450 Fifth FOR FURTHER INFORMATION CONTACT: engage, in any business activities other Street, N.W., Washington, D.C. 20549, Edward P. Macdonald, Staff Attorney, or than those necessary for winding up its facts bearing upon whether the Patrice M. Pitts, Branch Chief, Office of affairs. application has been made in Insurance Products, Division of 7. Within the last 18 months, BML accordance with the rules of the Investment Management, at (202) 942– Account has not transferred any of its exchanges and what terms, if any, 0670. assets to a separate trust. should be imposed by the Commission SUPPLEMENTARY INFORMATION: Following 8. BML Account represents that it is for the protection of investors. The is a summary of the application. The current with all of its filings under the Commission, based on the information complete application is available for a 1940 Act. submitted to it, will issue an order fee from the Public Reference Branch of 9. BML Account has ceased to be a granting the application after the date the SEC. legal separate account of Boston Mutual mentioned above, unless the 63876 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Commission determines to order a authorized to issue and sell, no later (‘‘Gregg’’), a retail vendor of household hearing on the matter. than December 31, 1996, short-term electronic appliances and related For the Commission, by the Division of notes (‘‘Notes’’) under bank lines of consumer goods, through December 31, Market Regulation, pursuant to delegated credit, and/or commercial paper 1996, involving an appliance sales authority. (‘‘Commercial Paper’’) up to an program (‘‘Pilot Program’’). Pursuant to Jonathan G. Katz, aggregate amount at any one time the 1995 Order, PSI was authorized to Secretary. outstanding of $21 million. As of market Gregg’s electronic goods and September 30, 1996, Maine Yankee had [FR Doc. 96–30564 Filed 11–29–96; 8:45 am] appliances at retail, on a best-efforts, no issued and outstanding amounts consignment basis, to PSI’s customers at BILLING CODE 8010±01±M under these lines of credit nor did it a limited number of its local offices. PSI have any Commercial Paper obligations. was also authorized to sell extended [Release No. 35±26613] Maine Yankee now proposes to service warranties covering any items extend its authority to issue and sell purchased. Further, the Pilot Program Filings Under the Public Utility Holding Notes and Commercial Paper in an contemplated that PSI might arrange Company Act of 1935, as Amended aggregate outstanding amount of $21 customer financing through a bank or (``Act'') million, through December 31, 2001. other financial institution for a fee. Maine Yankee has existing bank lines November 22, 1996. Pursuant to the 1995 Order, PSI has of credit permitting the issuance of been conducting the Pilot Program Notice is hereby given that the notes aggregating $21 million, including following filing(s) has/have been made through four of its local offices, in $8 million with The Bank of New York Bedford, Connersville, Greencastle, and with the Commission pursuant to and $13 million with The First National provisions of the Act and rules Huntington, Indiana. PSI has also been Bank of Boston. The Notes will be marketing to customers Gregg’s promulgated thereunder. All interested demand or other short-term obligations persons are referred to the application(s) extended service warranties. In under bank lines of credit. The Notes addition, as contemplated, PSI has and/or declaration(s) for complete will mature in twelve months or less statements of the proposed arranged (i.e., brokered) customer from the date of issuance. The effective financing with third-party financial transaction(s) summarized below. The interest cost of the Notes will not exceed application(s) and/or declaration(s) and institutions in exchange for a fee from the effective interest cost of borrowings the third-party financier. any amendments thereto is/are available at the prime rate, as in effect from time- for public inspection through the The initial proposal estimated that the to-time at such banks. Commitment fees Pilot Program would: Commission’s Office of Public will not exceed 1⁄2 of 1% of the lines of (1) result in total sales revenues of Reference. credit from such banks. Interested persons wishing to The Commercial Paper will mature in approximately $2.6 million; comment or request a hearing on the twelve months or less from the date of (2) utilize the full-time employee application(s) and/or declaration(s) issuance and will be issued through equivalent of three or four employees; should submit their views in writing by dealers in commercial paper and sold to and (3) involve approximately $320,000 December 16, 1996, to the Secretary, institutional investors. The Commercial of expenditures (consisting primarily of Securities and Exchange Commission, Paper may be backed by Maine Yankee’s advertising and sales expenses, Washington, D.C. 20549, and serve a available lines of credit or revolving expenses associated with the use of copy on the relevant applicant(s) and/or credit agreements. Maine Yankee will local offices and related facilities, and declarant(s) at the address(es) specified pay a fee to the dealers in the expenses associated with employees’ time). below. Proof of service (by affidavit or, Commercial Paper, estimated to be 1⁄8 of in case of an attorney at law, by 1% per annum, on a discount basis, of The interim financial results of the certificate) should be filed with the the amounts borrowed, as compensation Pilot Program have not met PSI’s request. Any request for hearing shall for their services with regard to the expectations, with revenues less than identify specifically the issues of fact or issuance of the Commercial Paper. The and expenses more than original law that are disputed. A person who so interest rate on the Commercial Paper estimates. PSI states that a principal requests will be notified of any hearing, will vary depending upon the interest reason why revenues to date have not if ordered, and will receive a copy of rates prevailing in the relevant market at matched expectations is because of local any notice or order issued in the matter. the time of issuance. competition with other appliances and After said date, the application(s) and/ The Notes and Commercial Paper will home electronics dealers. PSI states that or declaration(s), as filed or as amended, provide interim financing for Maine advertising expenses were higher than may be granted and/or permitted to Yankee’s construction program, for anticipated partly due to the rush to become effective. working capital and for other general open stores in time for the 1995 corporate purposes. Christmas shopping season, but states Maine Yankee Atomic Power Company that, since April of this year, the (70–8313) PSI Energy, Inc. (70–8727) advertising strategy has been modified, Maine Yankee Atomic Power PSI Energy, Inc. (‘‘PSI’’), 1000 Main and monthly advertising expenses have Company (‘‘Maine Yankee’’), 329 Bath Street, Plainfield, Indiana 46168, an fallen back into line with original Road, Brunswick, Maine 04011, an electric utility subsidiary of Cinergy estimates. In addition, PSI entered into indirect nuclear generating subsidiary of Corp., a registered holding company a settlement agreement with the Indiana Northeast Utilities (‘‘NU’’) and of New (‘‘Cinergy’’), has filed a post-effective Office of Utility Consumer Counselor England Electric System (‘‘NEES’’), both amendment to its application under providing, among other things, that 20% registered holding companies, has filed sections 9(a) and 10 of the Act and rule of the gross margins from all sales a declaration under Sections 6(a) and 7 54 thereunder. revenues to which PSI is entitled as a of the Act. By order dated November 21, 1995 result of its participation in the Pilot By orders dated January 17, 1991 and (HCAR No. 26412) (‘‘1995 Order’’), the Program will be allocated to PSI’s retail January 12, 1994 (HCAR Nos. 25244 and Commission authorized PSI to enter into electric customers through PSI’s 25973, respectively) Maine Yankee was a business venture with H.H. Gregg quarterly fuel adjustment clause. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63877

Finally, initial non-recurring start-up Furthermore, PSI requests make retail sales of electricity or natural costs also exceeded estimates. authorization to market extended gas, however, in states in which such PSI now requests authorization to service warranties to its customers, sales are not authorized or permitted continue the Pilot Program with certain covering the cost of repairs for their under applicable state laws or minor modifications for an additional household appliances/electronic goods, regulations. year in order to advance the program whether or not purchased from PSI as The Applicants request that the goals for which authorization for the part of the extended program. Based on Commission reserve jurisdiction over Pilot Program was originally sought. its experience to date, PSI may wish to any activities by Energy Services or the Specifically, PSI states that it continues use the full-time equivalent of up to five Subsidiaries outside the United States to believe that the energy industry is employees (out of the approximately subject to completion of the record. transforming into a competitive 2230) to carry out the program. Finally, the applicants request that industry, and that marketing appliances Consolidated Natural Gas Co., et al. the Commission authorize Energy and electronic goods (whether in (70–8883) Services and the Subsidiaries to acquire collaboration with Gregg or some other or construct physical assets that are Consolidated Natural Gas Company incidental and reasonably necessary in third-party vendor or by PSI on its own) (‘‘CNG’’), CNG Tower, Pittsburgh, to PSI’s retail customers, on the limited the day-to-day conduct of marketing Pennsylvania, 15222–3199, a registered operations, such as oil and gas storage basis currently in effect, will provide holding company, and its wholly owned incremental benefits to PSI in this facilities, gas, oil or coal reserves, or a non-utility subsidiary, CNG Energy pipeline spur needed for deliveries of emerging environment by among other Services Corporation (‘‘Energy things (1) promoting a company brand- fuel to an industrial client. The Services’’) (collectively, ‘‘Applicants’’), Applicants represent, however, that name identity, thereby facilitating the One Park Ridge Center, Pittsburgh, Energy Services and the Subsidiaries eventual marketing to customers by PSI Pennsylvania, 15244–0746, have filed will not acquire assets or make retail or its associate companies of other an application-declaration, as amended, sales of energy commodities that would energy-related and demand-side under sections 6(a), 7, 9(a), 10, 12(b) and result in a ‘‘public utility company’’ management products; (2) more fully 13(b) of the Act and rules 43, 45, 54 and within the definition of the Act. utilizing existing employees and offices 90 thereunder. to hold down costs; and (3) Energy Services, which markets Energy Services and the Subsidiaries strengthening ties to customers. natural gas and engages in the power will take appropriate measures in the PSI states that although interim costs generation business, seeks Commission normal course of their business to of the Pilot Program have exceeded authorization to invest, through mitigate the risks associated with estimates, many of these costs are non- December 31, 2001, up to $250 million electricity and fuel purchases or sales recurring start-up costs (e.g., local office to expand its business to market contracts. Such measures may include redesign, employee training, acquisition electricity and other energy matches between long-term firm or of point-of-sale software). Therefore, the commodities and to engage in fuel variable price electricity sales contracts investments PSI has made and the management and other incidental and long-term firm or variable price fuel hands-on experience it has gained will related activities. CNG and Energy purchase contracts. Purchases of fuel or benefit it significantly in the extended Services also seek Commission fuel reserves or options on fuel reserves Pilot Program. To further contain 1997 authorization to provide up to $250 might also be used to hedge fuel price program costs, Gregg has proposed million in guarantees or other credit risks. certain program modifications, support to subsidiaries that market Energy Services and the Subsidiaries including increased price discounts, energy commodities (‘‘Subsidiaries’’). may purchase or sell commodity-based advertising support, and increased The Applicants propose that Energy derivative instruments, such as Gregg staff support and training for store Services and the Subsidiaries engage in electricity or gas futures contracts and personnel, that will increase the all forms of brokering and marketing options on electricity or gas futures, potential profitability of the program. transactions, including electricity, similar to those traded on the New York natural gas, coal, oil, other Mercantile Exchange, and gas and oil The renewed Pilot Program would be price swap agreements and other subject to the same terms and hydrocarbons, wood chips, wastes and other combustibles, at wholesale and commodity-based derivative conditions contained in the 1995 Order instruments. except that: PSI may continue to retail. All proposed activities will be Energy Services and the Subsidiaries conduct the program in collaboration conducted by personnel of Energy will seek to manage a portfolio of energy with Gregg; alternatively, PSI may Services. contracts involving purchases, sales and conduct the program on its own or in The Subsidiaries might be trades of electricity and other energy collaboration with other appliances or corporations, partnerships, limited commodities. Energy Services and the home electronics vendors.1 In any liability companies, joint ventures or Subsidiaries will seek to hedge the risks event, PSI, whether on its own or other entities in which Energy Services associated with these contracts through together with third-party vendors, might have a 100% interest, a majority a combination of physical assets, would market household appliances equity or debt position, or a minority balanced physical purchases and sales, and other consumer electronic goods equity or debt position. The Applicants purchases and sales on futures markets, (including marketing extended service also propose that Energy Services and or other derivative risk management warranties and arranging for customer the Subsidiaries provide incidental tools. financing from third-party financial related services, such as fuel Energy Services intends to engage in institutions) from not more than five of management, storage and procurement. The Applicants contemplate that transactions involving gas, electricity PSI’s local offices. Energy Services and the Subsidiaries and other fuel capacity rights, rate engage in the proposed activities swaps and other commodity-based 1 PSI will not acquire any ownership interest in Gregg or such other third-party vendors; nor would without regard to locations or identities derivative products that may be PSI establish any new subsidiaries to implement the of clients or sources of revenues. Energy developed for use in the energy markets extended program. Services and the Subsidiaries will not in which it will participate in the 63878 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices ordinary course of its business as an Waltham, Massachusetts 02154, have contributions and/or loans to NEES energy company. filed an application-declaration under Energy from time-to-time, provided that Energy Services will not deal in such sections 6(a), 7, 9(a), 10, 12(b) and 13(b) such NEES financing shall not be in derivative products for purposes of of the Act and rules 22, 45, 54, 90, 91 excess of an aggregate of $50 million, speculation, but rather would use them and 104 thereunder. including any short-term loans and any only to reduce price-risk exposure By orders dated May 23, 1996 (HCAR amounts provided by NEES and/or through hedging. No. 26520) and August 28, 1996 (HCAR NEES Energy which are used by Energy Services might also engage in No. 26563) (‘‘Orders’’), the Commission AllEnergy LLC to acquire the assets or energy commodities marketing activities approved the formation of one or more securities of third parties, or to with the gas utility companies or other marketing companies (‘‘Marketing otherwise invest in a subsidiary, affiliates in the CNG system on the same Companies’’) by NEES in Massachusetts, pursuant to the authority requested, market terms that would be available to New Hampshire, Rhode Island, below, but excluding any guarantees non-affiliate clients. Connecticut, Maine, Vermont, from NEES and/or NEES Energy. Any Energy Services proposes to raise Maryland, Delaware, Pennsylvania, New such loans will be in the form of non- funds for the activities through (i) sales Jersey, and New York to engage in interest bearing subordinated notes of common stock, $1.00 par value, to wholesale marketing of electric power payable in twenty years or less from the CNG for up to $10,000 per share, (ii) and related transactions. Additionally, date of issue. NEES Energy may prepay open account advances, and (iii) long- the Orders authorized the Marketing any or all of such outstanding notes, in term loans from CNG. The open account Companies in New Hampshire and whole or in part, at any time and from advances and long-term loans will have Massachusetts to participate in those time-to-time without premium or the same effective terms and interest states’ pilot programs for retail electric penalty. rates as related funds borrowed by CNG. power sales. Finally, the Orders AllEnergy LLC will engage in the In particular, open account advances authorized the formation of Marketing business of marketing and selling: (1) would be made under letter agreement Companies in Connecticut, Maine and energy commodities, including with Energy Services and pursuant to a Vermont to engage in the business of electricity, natural gas, oil and other note issued by it and would be repaid wholesale and retail marketing of energy sources as well as options, within one year with interest equal to energy. The Commission reserved futures contracts, forward contracts, the effective rate of interest of the jurisdiction over retail electric sales by collars, spot contracts or swap contracts weighted average effective rate for CNG Marketing Companies in Rhode Island, related to the choice, purchase or commercial paper and/or revolving New York, New Jersey, Pennsylvania, consumption of any such energy credit funds. In the absence of such Maryland, Delaware, New Hampshire commodity and any other related funds, the interest rate would be based and Massachusetts, except to the extent financial products; and (2) incidental on the Federal Funds effective rate of that electric retail marketing is and reasonably necessary products and interest quoted daily by the Federal permitted under the New Hampshire services related to the choice, purchase Reserve Bank of New York. and Massachusetts pilot programs. or consumption of any such energy Loans to Energy Services would be Pursuant to the Orders, NEES has commodity, whether or not sold or evidenced by long-term non-negotiable formed NEES Energy, a Massachusetts provided on a bundled basis with notes that mature within thirty years corporation, and Granite State Energy, natural gas, electricity, oil, or other with the interest equal to the cost of Inc., a New Hampshire corporation, to energy source, such as, but not limited comparable funds borrowed by CNG. In undertake marketing activities to, audits, power quality, fuel supply, the absence of such funds, the interest consistent with the Commission’s repair, maintenance, construction, will be tied to the Salomon Brothers Orders. design, engineering and consulting. indicative rate for comparable debt NEES Energy now proposes to enter AllEnergy LLC will employ various issuances published in Salomon into a joint venture with a subsidiary of risk-reduction measures to limit Brothers Inc. Bond Market Roundup or Eastern Enterprises (‘‘Eastern’’), an potential losses that could be incurred similar publication on the date nearest exempt gas public utility holding through AllEnergy LLC activities. These to the time of takedown. company, to engage in the marketing of measures may include energy CNG will obtain the funds required energy and related services and commodity hedging transactions. for Energy Services through internal products. NEES Energy proposes to AllEnergy LLC will not engage in cash generation, issuance of long-term invest, from time-to-time, not exceeding speculative trading in the energy debt securities, funds borrowed under $50 million in, and be a voting member market. credit agreements or through other of AllEnergy LLC, a limited liability While AllEnergy LLC’s initial efforts authorizations approved by the corporation formed under the laws of will focus on the Northeast region, it Commission. Massachusetts on September 18, 1996 may expand its business to all 50 states, pursuant to a Limited Liability and, subject to Commission approval, to New England Electric System, et al. Company Agreement (‘‘LLC Canada. AllEnergy LLC will engage in (70–8921) Agreement’’), subject to Commission brokering and retail marketing of New England Electric System authorization. NEES Energy proposes to electric power and natural gas within a (‘‘NEES’’), a registered holding own not exceeding a 50% voting state or other jurisdiction only to the company, and its power marketing interest in AllEnergy LLC. The extent permitted or authorized under subsidiary company, NEES Energy, Inc. remaining 50% voting interest in such state’s or other jurisdiction’s laws (‘‘NEES Energy’’) (together, AllEnergy LLC will be owned initially or programs. ‘‘Applicants’’), both located at 25 by AllEnergy Marketing Company, Inc. AllEnergy LLC also proposes to form Research Drive, Westborough, (‘‘Eastern Sub’’), a wholly owned one or more subsidiaries in order, Massachusetts 01582, and NEES subsidiary of Eastern. among other things, to pursue its Energy’s proposed power marketing NEES proposes to provide initial business in a particular target state. It subsidiary, AllEnergy Marketing financing, through December 31, 2001, will make an initial equity contribution Company, L.L.C. (‘‘AllEnergy LLC’’), 3 for NEES Energy’s investment in in an amount not to exceed $100,000 in University Office Park, 95 Sawyer Road, AllEnergy LLC by making capital any one subsidiary. The form of the Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63879 initial investment, together with the transfers to affiliates, transfers to associate company of AllEnergy LLC formalities of the subsidiary’s formation, another member of AllEnergy LLC, and will be designed to parallel the effective may vary depending on the type of transfers to third parties. The LLC cost of capital of that associate entity organized. It may involve the Agreement provides that, in the event company. The Applicants may also be acquisition of common stock, a an AllEnergy LLC member receives an required to supply guarantees or other partnership interest, membership offer to purchase its interest and intends credit support agreements for AllEnergy interest or an interest pursuant to an to transfer its interest pursuant to such LLC in the ordinary course of its organizational agreement. offer, or must make a required business including, without limitation, AllEnergy LLC may have regulatory transfer of all or a portion of in connection with its execution of opportunities to acquire businesses to its interest, the other member shall have office leases, or of long term gas or complement its business, such as, but a right to purchase such interest at the electrical supply contracts. The not limited to, engineering services and offer price, or at the fair market value of Applicants request authorization to the propane gas business. AllEnergy the transferred portion of such interest, provide such guarantees or credit LLC will not acquire any utility assets in the case of a required regulatory support in amounts not to exceed $20 or gas distribution facilities, as those transfer. million in the aggregate and inclusive of terms are defined under the Act, The LLC Agreement provides a guarantees or credit support provided in regulations and orders issued mechanism whereby either NEES connection with short-term borrowing, thereunder, and will, therefore, not be Energy or Eastern Sub may trigger a above. either an electric or gas utility under the withdrawal of either party from Act. AllEnergy LLC by means of a buy/sell Columbia Gas System, Inc., et al. (70– AllEnergy LLC proposes to acquire a transaction (‘‘Buy/Sell Provision’’). The 8965) propane gas marketing business Buy/Sell Provision permits either party Columbia Gas System, Inc. operating in the Eastern United States to withdraw by giving the other party a (‘‘Columbia’’), 12355 Sunrise Valley for a price not exceeding $3.5 million. notice of intention to withdraw Drive, Suite 300, Reston, Virginia The terms of the acquisition will likely indicating a cash price at which the 20191–3420, a registered holding require, without limitation: (1) the withdrawing party would be willing to company, and Columbia Gas of payment or cancellation of the acquired either buy or sell its interest in Maryland, Inc. (‘‘Columbia Maryland’’), entities debt prior to the acquisition; (2) AllEnergy LLC. The party receiving 200 Civic Center Drive, Columbus, execution of agreements by key such notice may then either buy the Ohio, 43215, a natural gas subsidiary employees of the acquired entity to other party’s AllEnergy LLC interest, or company of Columbia, have filed an continue employment; (3) the sell its own AllEnergy LLC interest to application-declaration under sections assignment of material contracts, such other party, at such price. The 6(a), 7, 9(a) and 10 of the Act and rule contract rights and other rights and Buy/Sell Provision is intended as a 43 thereunder. commitments of the acquired entity to means of addressing disputes between The application-declaration seeks AllEnergy LLC; and (4) the making of NEES Energy and Eastern Sub in Commission authorization for Columbia customary representations and connection with AllEnergy LLC which Maryland to refinance long-term debt. warranties by the acquired entity and the parties are unable to resolve. By order dated December 22, 1994 AllEnergy LLC, respectively. AllEnergy LLC staffing is expected to (HCAR No. 26201), Columbia Maryland The LLC Agreement provides that in begin with a small group of employees. was authorized through 1996 to sell to the event an AllEnergy LLC member It is intended that four employees of Columbia securities (‘‘Old Notes’’) in an defaults in making a required capital New England Power Service Company aggregate amount of up to $5.5 million. contribution to AllEnergy LLC, the non- (‘‘NEPSCO’’) will be assigned to By order dated January 25, 1996 (HCAR defaulting member may, at its AllEnergy LLC on a full-time basis. To No. 26462) (‘‘Order’’), Columbia and discretion, advance to AllEnergy LLC on the extent any more NEPSCO personnel Columbia Maryland were authorized to behalf of the defaulting member all or a are assigned to AllEnergy LLC, they will change the type of securities Columbia portion of such required capital become employees of AllEnergy LLC. Maryland would sell to Columbia contribution (‘‘Member Default Loan’’). Other than such four NEPSCO (‘‘New Notes’’) and, in order to The defaulting member is responsible employees, AllEnergy LLC will have its refinance all previously issued Old for repaying the Member Default Loan to own employees and only rely on Notes, to increase the amount of New the member making such loan in NEPSCO or an Eastern subsidiary for Notes to be sold to $19.5 million. accordance with the LLC Agreement. In administrative services such as The Order authorized the exchange of the event that: (1) the non-defaulting accounting, tax, legal, information Old Notes by Columbia Maryland for member elects not to make such a services, insurance, and personnel New Notes on or around December 31, Member Default Loan; or (2) the management. All costs associated with 1995 as well as the future issuance of Member Default Loan is not repaid, then these NEPSCO services, and with New Notes to meet the capital needs of the member’s percentage interests in services of the above four NEPSCO Columbia Maryland in 1996. However, AllEnergy LLC shall, at the election of employees assigned to AllEnergy LLC due to various administrative delays, the non-defaulting member, be adjusted on a full-time basis, would be fully the exchange of Old Notes never to reflect the failure of the defaulting reimbursed on a cost basis by AllEnergy occurred. member to either make the required LLC in accordance with Rules 90 and 91 The application-declaration now capital contribution, or repay the of the Act. Reimbursements for these seeks Commission authorization for Member Default Loan, as the case may costs will be on a thirty-day cycle basis. Columbia Maryland, on or around be, in accordance with a formula set AllEnergy LLC intends to engage in December 31, 1996, to exchange Old forth in the LLC Agreement. short-term borrowing from third parties Notes sold to Columbia, which total Members of AllEnergy LLC may effect under rule 52(b) of the Act. The approximately $18.0 million, for New a transfer of all or a portion of their borrowing will be solely for the purpose Notes. interest in accordance with terms of the of financing AllEnergy LLC’s existing The New Notes will have a weighted LLC Agreement. Such transfers may business. The interest rates and maturity average interest rate below that of the include required regulatory transfers, dates of any debt security issued to an Old Notes. The maturities and interest 63880 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices rates of the New Notes will mirror the SUPPLEMENTARY INFORMATION: The telephonic meeting in which he seven series of debentures that were following is a summary of the participates and reimbursement for issued by Columbia upon emergence application. The complete application related expenses. The Eligible Directors from bankruptcy (HCAR No. 26361). may be obtained for a fee from the SEC’s receive no other compensation for their The New Notes will be governed by the Public Reference Branch. services to applicant. terms of a loan agreement in certificated Applicant’s Representations 4. Under the two Plans, an aggregate form and will be secured or unsecured. of 850,000 shares of applicant’s 1. Applicant is a business For the Commission, by the Division of common stock have been reserved for Investment Management, pursuant to development company (‘‘BDC’’) within issuance to applicant’s directors, delegated authority. the meaning of section 2(a)(48) of the officers, and employees (750,000 shares 1 Margaret H. McFarland, Act. Applicant requests an order are reserved under the Employee Plan Deputy Secretary. pursuant to section 61(a)(3)(B) of the and 100,000 under the Director Plan). Act approving the Director Plan and The shares reserved for issuance under [FR Doc. 96–30531 Filed 11–29–96; 8:45 am] pursuant to the Director Plan, the BILLING CODE 8010±01±M the two Plans constitute 10.3% of the automatic grant of options to purchase 8,250,000 shares of applicant’s common shares of applicant’s common stock to stock outstanding as of August 31, 1996 [Investment Company Act Release No. each director who is not an employee, with the shares reserved for issuance 22350; 812±10352] officer, or interested person (as defined under the Employee Plan constituting in section 2(a)(19) of the Act) of 9.09% and the shares reserved for Medallion Financial Corp.; Notice of applicant (‘‘Eligible Director’’) and to issuance under the Director Plan Application each new Eligible Director of applicant constituting 1.21%. Eligible Directors who may be elected or appointed in the November 25, 1996. are not eligible to receive stock options future to applicant’s board of directors. AGENCY: Securities and Exchange under the Employee Plan. Applicant has The Director Plan and a stock option Commission (‘‘SEC’’). no warrants, options, or rights to plan for applicant’s officers and ACTION: Notice of Application for an purchase its voting securities employees, including employee Order under the Investment Company outstanding, other than those granted directors, (the ‘‘Employee Plan’’) were Act of 1940 (the ‘‘Act’’). pursuant to the Employee Plan. approved by applicant’s shareholders 5. The Director Plan provides for APPLICANT: Medallion Financial Corp. and board of directors at meetings held on May 22, 1996. Applicant will ‘‘Initial Grants’’ and ‘‘Automatic RELEVANT ACT SECTIONS: Order of Grants.’’ With respect to the Initial exemption requested pursuant to implement the Director Plan subsequent to receiving an order of the SEC Grants, on the Approval Date the section 61(a)(3)(B) of the Act. Eligible Directors serving at such time SUMMARY OF APPLICATION: Applicant (‘‘Approval Date’’). 2. Applicant’s principal focus is the will be granted options to purchase the requests an order approving applicant’s number of shares of common stock 1996 Eligible Director stock option plan origination and servicing of loans financing the purchase of taxicab determined by dividing $100,000 by the (the ‘‘Director Plan’’) and the grant of current market value of the common certain stock options thereunder. medallions and related assets. Applicant also originates and services commercial stock, multiplied by the fraction that FILING DATE: The application was filed installment loans secured by retail dry represents the portion of a full three- on September 13, 1996. cleaning and coin operated laundromat year term that the director has initially HEARING OR NOTIFICATION OF HEARING: An equipment and other targeted been elected to serve. After the Initial order granting the application will be industries. Further, applicant also Grants have been made, all subsequent issued unless the SEC orders a hearing. operates a taxicab rooftop advertising grants of options to Eligible Directors Interested persons may request a business. Applicant operates its upon their election, reelection, or hearing by writing to the SEC’s businesses through four subsidiaries, appointment to the board will be Secretary and serving applicants with a Medallion Funding Corp., Edwards Automatic Grants. With respect to the copy of the request, personally or by Capital Corp., Transportation Capital Automatic Grants, at each annual mail. Hearing requests should be Corp., and Medallion Taxi Media, Inc. meeting of applicant’s shareholders after received by the SEC by 5:30 p.m. on The first three companies are registered the Approval Date, each eligible director December 20, 1996 and should be investment companies and licensed as elected or re-elected to a three-year term accompanied by proof of service on small business investment companies will automatically be granted an option applicants, in the form of an affidavit, by the Small Business Administration. to purchase the number of shares of or, for lawyers, a certificate of service. Applicant is managed by its executive common stock determined by dividing Hearing requests should state the nature officers under the supervision of its $100,000 by the current market value of of the writer’s interest, the reason for the board of directors and has retained FMC the common stock on the date of such request, and the issues contested. Advisers, Inc. (the ‘‘Sub-Adviser’’) as an election. Upon the election or Persons may request notification of a investment adviser. appointment of an Eligible Director hearing by writing to the SEC’s 3. Each Eligible Director of applicant other than at an annual shareholder Secretary. receives $10,000 a year for each year he meeting, each such Eligible Director will ADDRESSES: Secretary, SEC, 450 Fifth serves, $2,000 for each board meeting automatically be granted an option to Street, N.W., Washington, D.C. 20549. attended, $1,000 for each committee purchase that number of shares Applicant, 205 East 42nd Street, Suite meeting attended, $250 for each determined by (a) dividing $100,000 by 2020, New York, New York 10017. the current market value of the common FOR FURTHER INFORMATION CONTACT: 1 Section 2(a)(48) defines a BDC to be any closed- stock on the date of election and (b) Elaine M. Boggs, Staff Attorney, at (202) end investment company that operates for the multiplying the resulting quotient by a 942–0572, or Alison E. Baur, Branch purpose of making investments in securities fraction, the numerator of which is described in sections 55(a)(1) through 55(a)(3) of the Chief, at (202) 942–0564 (Division of Act and makes available significant managerial equal to the number of whole months Investment Management, Office of assistance with respect to the issuers of such remaining in the new director’s term Investment Company Regulation). securities. and the denominator of which is 36. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63881

6. Options granted under the Director such market exists, the current net asset August 31, 1996. Applicant submits that Plan become exercisable at each annual value of such voting securities; (c) the given the small number of shares of meeting of shareholders (but not in the proposal to issue such options is common stock issuable upon the event applicant holds an annual authorized by the BDC’s shareholders, exercise of options which may be meeting of shareholders in 1996) with and is approved by order of the SEC granted under the Director Plan should respect to that number of shares that is upon application; (d) the options are not not have a substantial dilutive effect on determined by multiplying the number transferable except for disposition by the net asset value of applicant’s of shares covered by such option by a gift, will, or intestacy; (e) no investment common stock. Further, the options will fraction, the numerator of which will adviser of the BDC receives any vest in three annual installments equal the number of whole months compensation described in section commencing with the first annual elapsed since the most recent to have 205(a) of the Investment Advisers Act of shareholders’ meeting after the Eligible occurred of either (a) the date of the 1940, except to the extend permitted by Director’s election, appointment, or re- grant or (b) the last annual meeting of clause (A) or (B) of that section; and (f) election, and only if the Eligible shareholders, and the denominator of the BDC does not have a profit-sharing Director continues to serve on which will be the number of whole plan as described in section 57(n) of the applicant’s board of directors. months for which such director was Act. 3. In addition, section 61(a)(3)(B) of For the Commission, by the Division of elected. The exercise price of the Investment Management, pursuant to options would be 100% of the current the Act provides that the amount of the delegated authority. BDC’s voting securities that would market value of applicant’s common Margaret H. McFarland, stock on the Nasdaq Stock Market at the result from the exercise of all Deputy Secretary. date of grant, or if the stock is not so outstanding warrants, options, and quoted at such time, then equal to the rights at the time of issuance may not [FR Doc. 96–30612 Filed 11–29–96; 8:45 am] current net asset value of the common exceed 25% of the BDC’s outstanding BILLING CODE 8010±01±M stock as determined in good faith by voting securities, except that if the members of the board of directors not amount of voting securities that would [Rel. No. IC±22347; File No. 812±10358] eligible to participate in the Director result from the exercise of all Plan. outstanding warrants, options, and NASL Series Trust, et al. 7. Eligible Directors holding rights issued to the BDC’s directors, exercisable options under the Director officers, and employees pursuant to an November 22, 1996. Plan who cease to be eligible directors executive compensation plan would AGENCY: Securities and Exchange for any reason, other than death, may exceed 15% of the BDC’s outstanding Commission (‘‘Commission’’). exercise the rights they had under such voting securities, then the total amount ACTION: Notice of Application for options at the time they ceased to be an of voting securities that would result Exemption pursuant to the Investment eligible director for three months from the exercise of all outstanding Company Act of 1940 (the ‘‘1940 Act’’). following the date on which such warrants, options, and rights at the time director ceased to be an eligible director. of issuance shall not exceed 20% of the APPLICANTS: NASL Series Trust No additional options held by such outstanding voting securities of the (‘‘Trust’’), The Manufacturers Life directors shall become exercisable BDC. Insurance Company (‘‘Manulife’’), The thereafter. Upon the death of a director, 4. Applicant represents that the Manufacturers Life Insurance Company those entitled to do so under the Director Plan and the Initial and the of America (‘‘Manulife America’’), director’s will or the laws of descent Automatic Grants would meet the Manulife Series Fund, Inc. (‘‘Manulife and distribution will have the right, at requirements of section 61(a). In Series Fund’’), Manufacturers Adviser any time within twelve months after the addition, in support of its application, Corporation (‘‘Manufacturers Adviser’’), date of death, to exercise in whole or in applicant states that its directors are North American Security Life Insurance part any rights which were available to actively involved in the oversight of Company (‘‘Security Life’’), First North the director at the time of his or her applicant’s affairs and that applicant American Life Assurance Company death. The Director Plan will expire ten relies on the judgment and experience (‘‘FNAL’’), and NASL Financial years after the Approval Date and each of its directors. Further, applicant states Services, Inc. (‘‘Financial Services’’). option will expire five years from the that is directors have extensive and RELEVANT 1940 ACT SECTIONS: Order date of grant. varied financial, regulatory, political, requested pursuant to Section 17(b) of and legal experience which enhance Applicant’s Legal Analysis the 1940 Act, granting an exemption applicant’s ability to accomplish its from the provisions of Section 17(a) 1. Section 63(3) of the Act permits a investment objectives. Applicant states thereof, and pursuant to Rule 17d–1 of BDC to sell its common stock at a price that the Director Plan will provide the 1940 Act, permitting certain below current net asset value upon the incentives to the Eligible Directors to transactions. exercise of any option issued in remain on the board and devote their SUMMARY OF APPLICATION: Applicants accordance with section 61(a)(3) of the best efforts to the success of applicant’s seek exemptive relief to permit the Act. business. 2. Section 61(a)(3)(B) of the Act 5. Applicant submits that the terms of merger of each of the investment provides, in pertinent part, that a BDC the Director Plan are fair and reasonable portfolios of Manulife Series Fund and may issue to its non-employee directors and do not involve overreaching of into portfolios of the Trust that are options to purchase its voting securities applicant or its shareholders. On the existing or will be established (the pursuant to an executive compensation Approval Date, the number of ‘‘Reorganization’’). plan, provided that: (a) The options applicant’s voting securities that would FILING DATE: The application was filed expire by their terms within ten years; result from the exercise of all options on September 19, 1996, and amended (b) the exercise price of the options is issued or issuable to applicant’s on November 21, 1996. not less than the current market value directors, officers, and employees under HEARING OR NOTIFICATION OF HEARING: An of the underlying securities at the date both Plans is 850,000 shares of 10.3% of order granting the Application will be of the issuance of the options, or if no applicant’s outstanding shares on issued unless the Commission orders a 63882 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices hearing. Interested persons may request may be obtained for a fee from the 5. Manufacturers Adviser, a direct a hearing by writing to the Secretary of Public Reference Branch of the wholly-owned subsidiary of Manulife the Commission and serving Applicants Commission. America, is registered pursuant to the with a copy of the request, personally or Investment Advisers Act of 1940 Applicants’ Representations by mail. Hearing requests must be (‘‘Advisers Act’’) as an investment received by the Commission by 5:30 1. The Trust, a Massachusetts adviser. business trust, is an open-end, series p.m. on December 17, 1996, and must be 6. Security Life is a Delaware stock investment company registered accompanied by proof of service on life insurance company. Applicants in the form of an affidavit or, pursuant to the 1940 Act. Shares of the for lawyers, a certificate of service. Trust are sold only to insurance 7. FNAL, a wholly-owned subsidiary Hearing requests should state the nature companies and their separate accounts of Security Life, is a New York stock life of the requestor’s interest, the reason for as the underlying medium for variable insurance company. the request, and the issues contested. annuity and variable life insurance 8. Financial Services, a wholly-owned Persons may request notification of a contracts. Security Life, FNAL, and subsidiary of Security Life, is registered hearing by writing to the Secretary of Manulife America and their separate pursuant to the Advisers Act as an the Commission. accounts are the only shareholders of investment adviser and pursuant to the ADDRESSES: Secretary, Securities and the Trust. Securities Exchange Act of 1934 as a 2. Manulife is a Canadian mutual life Exchange Commission, 450 Fifth Street, broker-dealer. insurance company. 9. Applicants propose that each of the N.W., Washington, D.C. 20549. 3. Manulife America, an indirect investment portfolios of Manulife Series Applicants, c/o James D. Gallagher, Esq., wholly-owned subsidiary of Manulife, is 116 Huntington Avenue, Boston, a stock life insurance company, Fund merge with and into an existing or Massachusetts 02116 and Sheri L. organized under the laws of to be established investment portfolio of Kocen, Esq., 200 Bloor Street East, Pennsylvania, and redomesticated the Trust. In the Reorganization, all of Toronto, Ontario, Canada M4W 1E5. under the laws of Michigan. the assets and liabilities of each FOR FURTHER INFORMATION CONTACT: 4. Manulife Series Fund, a Maryland Manulife Series Fund portfolio will be Pamela K. Ellis, Senior Counsel, or corporation, is an open-end, series, transferred to a corresponding Trust Kevin M. Kirchoff, Branch Chief, at management investment company portfolio having a substantially similar (202) 942–0670, Office of Insurance registered pursuant to the 1940 Act. investment objective in exchange for Products (Division of Investment Shares of Manulife Series Fund are sold shares of such Trust portfolio. Management). only to Manulife America and its 10. Shares of each Trust portfolio will SUPPLEMENTARY INFORMATION: The separate accounts as the underlying be distributed to holders of shares of the following is a summary of the medium for variable annuity and respective corresponding Manulife application; the complete application variable life insurance contracts. Series Fund as follows:

Manulife series fund portfolio Trust portfolio

Money-Market Fund ...... Money Market Trust International Fund ...... International Stock Trust Emerging Growth Equity Fund ...... Emerging Growth Trust Balanced Assets Fund ...... Balanced Trust Common Stock Fund ...... Common Stock Trust Pacific Rim Emerging Markets Fund ...... Pacific Rim Emerging Markets Trust Real Estate Securities Fund ...... Real Estate Securities Trust Capital Growth Bond Fund ...... Capital Growth Bond Trust Equity Index Fund ...... Equity Index Trust

11. Applicants represent that the total be submitted to a vote of the does not require the approval of the value of all shares of each Trust shareholders of the Manulife Series shareholders of the Trust. portfolio issued in the Reorganization Fund for approval at a special meeting 13. Financial Services currently will equal the total value of the net of shareholders scheduled to be held on serves as investment adviser to the assets of the corresponding Manulife December 20, 1996. The sole Trust. Manufacturers Adviser currently Series Fund portfolio being acquired by shareholder of the Manulife Series Fund serves as investment manager of such Trust portfolio. The number of full at the record date for that meeting, Manulife Series Fund. Following and fractional shares of a Trust portfolio October 23, 1996, was Manulife consummation of the Reorganization and pursuant to agreements with received by a shareholder of the America. Manulife America will vote all corresponding Manulife Series Fund Financial Services: (a) Manufacturers shares of Manulife Series Fund in will be equal in value to the value of Adviser will serve as subadviser to the accordance with and in proportion to that shareholder’s shares of the six of the Trust portfolios—Money corresponding Manulife Series Fund timely instructions received from Market, Common Stock, Pacific Rim portfolio as of the close of regularly owners of the variable contracts issued Emerging Markets, Real Estate scheduled trading on the New York by it, the values of which were invested Securities, Capital Growth Bond, and Stock Exchange on the date of the in shares of the Manulife Series Fund Equity Index Trusts; (b) Rowe Price- Reorganization. through the separate accounts at the Fleming International, Inc. will serve as 12. On September 27, 1996, the Board record date. The Reorganization must be subadviser to the International Stock of Directors of Manulife Series Fund approved by a majority of the Trust; (c) Founders Asset Management, and the Board of Trustees of the Trust outstanding voting shares of each Inc. will serve as subadviser to the authorized and approved the Manulife Series Fund portfolio. Under Balanced Trust; and (d) Warburg, Pincus Reorganization. The Reorganization will Massachusetts law, the Reorganization Counsellors, Inc. will serve as Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63883 subadviser to the Emerging Growth of similar funds; (e) the fact that shareholders of the Money-Market Fund Trust. Financial Services has agreed to limit portfolio of Manulife Series Fund to 14. Manufacturers Adviser pays all the total expenses of certain of the Trust pursue substantially the same expenses of Manulife Series Fund portfolios for one year following the investment goals in a larger fund attributable to the Emerging Growth Reorganization to a level no higher than immediately following the Equity Fund, Balanced Assets Fund, the existing levels of total expense of the consummation of the Reorganization. Capital Growth Bond Fund, Money- corresponding Manulife Series Fund 18. Although the expense ratios of Market Fund, Common Stock Fund, and portfolios; (f) the sophistication and five of the Trust’s portfolios are higher Real Estate Securities Fund except for specialization of the new subadvisers than the expense ratios of the investment management fees, brokerage for certain of the Trust portfolios; (g) the corresponding Manulife Series Fund commission, taxes, interest and other compatibility of the investment portfolios, the Board of Directors of borrowing-related costs and objectives, policies, restrictions, and Manulife Series Fund determined that extraordinary expenses. With respect to portfolios of each Manulife Series Fund the higher expense ratios are consistent the International Fund, the Pacific Rim portfolio and each corresponding Trust with current industry standards and Emerging Markets Fund, and the Equity portfolio; (h) the advantages to each justified in light of the change in Index Fund, the respective portfolio Manulife Series Fund portfolio of portfolio management of such portfolios pays investment management fees and investing in potentially larger asset and certain agreements with Financial the other expenses noted above, plus up pools with greater diversification; (i) the Services to limit for a period of one year to .50 percent, .65 percent, and .15 historical performance of the Manulife following the consummation of the percent, respectively, of any additional Series Fund portfolios and the NASL Reorganization certain expense ratios. expenses in connection with the Money Market Trust, as well as of each 19. The Board of Trustees of the Trust operation of these portfolios. portfolio’s respective investment adviser determined to approve the 15. Financial Services is responsible and subadviser where relevant; (j) the Reorganization because it would result for performing or paying for various terms and conditions of the in an increase in the total assets of the administrative services for the Trust. Reorganization and whether the Trust, and would provide initial assets Advisory fees are reduced, or Financial Reorganization would result in dilution for new Trust portfolios to be offered Services reimburses the Trust, if the of shareholder or contractholder after the Reorganization. total of all expenses (excluding advisory interests; (k) portfolio transaction Applicants’ Legal Analysis fees, taxes, brokerage commission, policies of the Manulife Series Fund interest, litigation and indemnification portfolios and the Trust portfolios; (l) Section 17(a) expenses, and other extraordinary any direct and indirect costs incurred by 1. Section 17(a) of the 1940 Act expenses) applicable to a Trust portfolio each Manulife Series Fund portfolio and exceeds an annual rate of .75 percent for prohibits any affiliated person of a each corresponding Trust portfolio as a the International Stock Trust and Pacific registered investment company, or any result of the Reorganization; (m) tax Rim Emerging Markets Trust, .15 affiliated person of such person, acting consequences of the Reorganization; and percent for the Equity Index Trust, or as principal, knowingly from selling or (n) possible alternatives to the .50 percent for all other Trust portfolios. purchasing any security or other Reorganization. The expense limitations continue in property to or from such investment effect from year to year unless 17. In determining whether to company. terminated upon notice to the Trust. approve the Reorganization and 2. Section 2(a)(3) of the 1940 Act, in 16. In determining whether to recommend its approval to part, defines an ‘‘affiliated person’’ of approve the Reorganization and shareholders, the Board of Directors of another as ‘‘the person directly or recommend its approval to Manulife Series Fund concluded that indirectly controlling, controlled by, or shareholders, the Board of Directors of the participation of each Manulife under common control with, such other Manulife Series Fund (including the Series Fund portfolio in the person.’’ Section 2(a)(9) of the 1940 Act directors who are not ‘‘interested Reorganization is in the best interests of defines ‘‘control’’ in part to mean ‘‘the persons’’ of the Manulife Series Fund, such portfolio, as well as its power to exercise a controlling with the advice and assistance of shareholders and contract holders influence over the management or independent legal counsel) considered whose contract values are invested in policies of a company, unless such various factors, including: (a) The shares thereof, and that the interest of power is solely the result of an official advantages to shareholders of investing existing shareholders and position with such company.’’ in a series fund with a modern strategy contractholders will not be diluted as a 3. The Trust and Manulife Series of offering investment opportunities that result of such participation. That Fund may be deemed to be affiliated address investor needs at multiple risk/ conclusion was based on various persons of each other or affiliated reward levels; (b) the capability of consideration, including that the persons of affiliated persons under Financial Services to offer flexibility Reorganization will: (a) Enable Section 2(a)(3) of the 1940 Act. Section and the potential for greater and more contractholders to take advantage of an 17(a), therefore, may prohibit the diverse investment opportunities; (c) the investment management approach transactions required to effect the multiple manager approach by which known as managing to the ‘‘efficient Reorganization. Financial Services monitors and frontier’’ in which investors allocate 4. Section 17(b) of the 1940 Act evaluates subadviser performance, their assets among a broad mix of provides that the Commission may grant investment compliance, and capabilities investment choices consistent with their an order of exemption from the with the goal of maintaining high risk tolerance levels with the goal of provisions of Section 17(a) if evidence quality and an appropriate balance of maximizing their risk adjusted establishes that: (a) the terms of the investment alternatives; (d) expense investment return; (b) allow proposed transaction, including the ratios and available information shareholders to receive the investment consideration to be paid or received, are regarding the fees and expenses of each advisory services of Financial Services reasonable and fair and do not involve Manulife Series Fund portfolio and each and its multiple manager approach to overreaching on the part of any person corresponding Trust portfolio, as well as portfolio management; and (c) permit concerned; (b) the proposed transaction 63884 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices is consistent with the policy of each proposed is consistent with the 17(b) of the 1940 Act and Rule 17d–1 registered investment company provisions, policies and purposes of the thereunder. concerned, as recited in its registration [1940] Act, and the extent to which such For the Commission, by the Division of statement and reports filed pursuant to participation is on a basis different from Investment Management, pursuant to the 1940 Act; and (c) the proposed or less advantageous than that of other delegated authority. transaction is consistent with the participants.’’ Margaret H. McFarland, general purposes of the 1940 Act. 13. The expenses of the Deputy Secretary. 5. Applicants request, pursuant to Reorganization (other than registration [FR Doc. 96–30529 Filed 11–29–96; 8:45 am] Section 17(b) of the 1940 Act, an fees payable for the registration of BILLING CODE 8010±01±M exemption from the provisions of shares of each Trust portfolio issued in Section 17(a) to permit the connection with the Reorganization, Reorganization. which will be payable by such Trust [Release No. 34±37973; International Series 6. The exchange of assets of the portfolio) will be borne by Financial Release No. 1031; File No. SR±AMEX±96± Manulife Series Fund portfolios for Services and one or more insurance 36] shares of capital stock of the Trust companies that are affiliates of Manulife November 22, 1996. portfolios will be accomplished on the Series Fund or the Trust. basis of the net asset value of the 14. Applicants assert that the bearing Self-Regulatory Organizations; Notice respective portfolios; Applicants assert of expenses of the Reorganization by of Filing of Proposed Rule Change and that the Reorganization will therefore Financial Services and one or more Amendment No. 1 Thereto by the not dilute the interests of existing insurance companies that are affiliates American Stock Exchange, Inc., shareholders or contract owners. of Manulife Series Fund or the Trust Relating to the Policy of the Amex 7. In determining whether to approve could be regarded as a joint enterprise. Regarding Information Obtained the Reorganization, the Board of Applicants therefore request exemptive Pursuant to the SEC's Memorandum of Directors of Manulife Series Fund and relief pursuant to Rule 17d–1 of the Understanding With the CONSOB the Board of Trustees of the Trust found, 1940 Act. after considering the factors Pursuant to Section 19(b)(1) of the 15. As summarized above, Applicants summarized above, that the terms of the Securities Exchange Act of 1934 assert that the terms of the proposed transactions proposed to accomplish the (‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is transactions are consistent with the Reorganization are fair and reasonable hereby given that on October 2, 1996, policies, provisions, and purposes of the and do not involve overreaching on the the American Stock Exchange, Inc. 1940 Act because they are reasonable part of any person concerned. (‘‘Amex’’ or ‘‘Exchange’’) filed with the and fair to all parties, do not involve 8. The proposed Reorganization has Securities and Exchange Commission overreaching, and are consistent with been reviewed by the Board of Directors (‘‘SEC’’ or ‘‘Commission’’) the proposed the investment objectives and policies of Manulife Series Fund and the Board rule change as described in Items I, II, of each portfolio of Manulife Series of Trustees of the Trust for consistency and III below, which Items have been Fund and of the Trust participating in with the policies of both the Manulife prepared by the Amex. Amex submitted the proposed transactions. The Series Fund and the Trust. Although the Amendment No. 1 to the filing on participation in the Reorganization by Manulife Series Fund and the Trust November 12, 1996.1 The Commission each portfolio will be at respective net have different investment advisers, is publishing this notice to solicit asset value, and not on a basis different Applicants assert that they are comments on the proposed rule change from or less advantageous than that of substantially similar investment from interested persons. other participants. Contract owners of vehicles. I. Self-Regulatory Organization’s 9. Applicants assert that the each Manulife Series Fund portfolio Statement of the Terms of Substance of Reorganization is consistent with the will have the opportunity to provide the Proposed Rule Change general purposes of the 1940 Act and voting instructions regarding approval will not result in any of the abuses that of the Reorganization. Pursuant to Section 19(b)(1) of the the 1940 Act was designed to prevent. 16. Applicants also assert that the Act, the Amex is submitting this rule participation by affiliates of Manulife filing to adopt an official Exchange Rule 17d–1 Series Fund and the Trust in the policy concerning the circumstances 10. Section 17(d) of the 1940 Act transaction is consistent with the and conditions under which the prohibits an affiliated person of a requirements of Rule 17d–1. Applicants Exchange, in order to carry out its registered investment company from note that to the extent that expenses of market surveillance and enforcement effecting any transaction in which the the Reorganization are borne by functions for derivative products company is a joint participant in affiliated insurance companies rather containing Italian component securities, contravention of Commission rules. than Financial Services, no benefit will may obtain access to information 11. Rule 17d–1(a) prohibits an accrue to such affiliates. Moreover, regarding activity on the Italian affiliated person of any registered Applicants note that payment of securities market obtained by the SEC investment company, acting as expenses of the Reorganization by pursuant to the Commission’s principal, from participating in or Financial Services and the affiliated Memorandum of Understanding effecting any transaction in a ‘‘joint insurance companies will reduce (‘‘MOU’’) with the Commissione enterprise or other joint arrangement’’ in expenses that would otherwise be Nazionale per le Societa e law Bortsa which the company is a participant payable by the Manulife Series Fund (‘‘CONSOB’’). without prior Commission approval. portfolios. 12. Rule 17d–1(b) provides that when 1 Conclusion On November 12, 1996, Amex submitted the Commission is passing upon Amendment No. 1 to its proposed rule filing, exemptive applications it is to ‘‘consider For the reasons summarized above, making several clarifications to the original filing. See Letter from Claire P. McGrath, Managing whether the participation . . . in such Applicants submit that the terms of the Director and Special Counsel, Amex, to Michael joint enterprise, joint arrangement or Reorganization meet the conditions for Walinskas, Senior special Counsel, Division, profit-sharing plan on the basis exemptive relief established by Section Commission , dated November 7, 1996. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63885

The text of the proposed rule change Exchange will use such information it confidential in the territory of the State of the is available at the Office of the may receive from the SEC only for the requested Authority, except in the case Secretary, Amex and at the Commission. purposes of conducting market where the information provided must be surveillance and enforcement disclosed in the course of its use pursuant to II. Self-Regulatory Organization’s Article 7 above. proceedings. The Exchange will limit Statement of the Purpose of, and 3. The Authorities may, by mutual distribution of such information to Statutory Basis for, the Proposed Rule arrangement, make an exception to the officers and directors of the Exchange Change principles set forth in paragraphs 1 and 2 and other employees directly above, to the extent permitted by the law In its filing with the Commission, the responsible for conducting market applicable to each Authority. Amex included statements concerning surveillance and enforcement the purpose of and basis for the proceedings relating to the matter in By adopting a policy that provides proposed rule change and discussed any connection with which the SEC access to information on the underlying comments it received on the proposed provided the information to the securities for market surveillance and rule change. The text of these statements Exchange. The Exchange will also enforcement purposes, the Exchange may be examined at the places specified undertake to maintain the will be able to list options and other in Item IV below. The Amex has confidentiality of the information and to derivative products containing Italian prepared summaries, set forth in take appropriate disciplinary action in component securities, provided that all sections (A), (B), and (C) below, of the the event it learns of a breach of such other applicable product listing most significant aspects of such confidentiality, including referral to the standards are met. Therefore, the statements. SEC for any action the SEC deems Exchange believes that the proposed necessary or appropriate. In this regard, rule change could potentially provide (A) Self-Regulatory Organization’s investors with the opportunity to invest Statement of the Purpose of, and two articles of the MOU detail the agreement on confidentiality: in such products and hedge their Statutory Basis for, the Proposed Rule exposure to the Italian securities market. Change Article 7: Permissible Use of Information (2) Basis (1) Purpose 1. The requesting Authority may use the information furnished solely: The proposed rule change is The Amex does not have a (a) for purposes stated in the request, consistent with Section 6(b) of the Act surveillance sharing agreement with the including ensuring compliance with or in general and furthers the objectives of Milan exchange which is an enforcement of the legal provisions specified in the request; or Section 6(b)(5) in particular in that it is unincorporated association and is not designed to prevent fraudulent and able under Italian law to enter into such (b) for purposes within the general framework of the use stated in the request, manipulative acts and practices, to an arrangement. Therefore, the purpose including conducting a civil or promote just and equitable principles of of the proposed rule change is to enable administrative enforcement proceeding; trade, and is not designed to permit the Amex to carry out its market assisting with a self-regulatory enforcement unfair discrimination between surveillance and enforcement functions proceeding or market surveillance; and customers, issuers, brokers or dealers. for derivative products containing assisting in a proceeding, including a Italian component securities by seeking proceeding whose purpose is to permit a (B) Self-Regulatory Organization’s the necessary information about activity subsequent criminal prosecution or Statement on Burden on Competition on the Italian securities markets from conducting any investigation related thereto for any general charge applicable to the The Amex does not believe that the the SEC pursuant to the SEC’s MOU violation of the provision specified in the proposed rule change will impose any with CONSOB. The Exchange’s request. burden on competition. proposed policy details the 2. To use the information furnished for any circumstances and conditions under purpose other than those stated in paragraph (C) Self-Regulatory Organization’s which the Exchange may obtain access 1 of this Article, the requesting Authority Statement on Comments on the to such information from the SEC. By must first inform the requested Authority of Proposed Rule Change Received From adopting this policy, therefore, the its intention and provide it the opportunity Members, Participants or Others Exchange believes it will be in a to oppose the use. If, under such conditions, the requested Authority does not oppose the No written comments were solicited position to list derivative products use of the information for purposes other or received with respect to the proposed containing Italian component securities than those stated in paragraph 1 of this rule change. because it will be able to have access to Article, it may subject to the use of the information on the underlying securities information to certain conditions. If use of III. Date of Effectiveness of the which it may need for enforcement or the information is opposed by the requested Proposed Rule Change and Timing for market surveillance purposes.2 Authority, the authorities intent to consult Commission Action The Exchange’s proposed policy pursuant to Article 9 concerning the reasons provides that the Exchange will advise for the refusal and the circumstances under Within 35 days of the date of which use of the information might publication of this notice in the Federal the SEC of information it needs otherwise be allowed. regarding activity on the Italian Register or within such longer period (i) securities markets for market Article 8: Confidentiality of Requests as the Commission may designate up to 90 days of such date if it finds such surveillance and enforcement purposes. 1. Each Authority shall keep confidential, The SEC, in turn, pursuant to the MOU, to the extent permitted by law, requests made longer period to be appropriate and may request the CONSOB’s assistance in within the framework of this Understanding, publishes its reasons for so finding or gaining access to such information. The the contents of such requests, and any other (ii) as to which the Amex consents, the matters arising during the operation of this Commission will: Understanding, including consultations 2 The Commission notes that all Amex-listed (A) By order approve such proposed between the Authorities. securities, including options and other derivative rule change, or securities products, must meet all applicable listing 2. The requesting Authority shall keep and maintenance standards. This filing only confidential any information received (B) Institute proceedings to determine addresses trading requirements relating to necessary pursuant to this Understanding to the same whether the proposed rule change surveillance sharing procedures. extent as such information would be kept should be disapproved. 63886 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

IV. Solicitation of Comments I. Self-Regulatory Organization’s GovPX on the last trading day prior to Interested persons are invited to Statement of the Terms of Substance of the expiration of interest rate options as submit written data, views, and the Proposed Rule Change the basis for the exercise settlement arguments concerning the foregoing. The proposed rule filing changes the values that it will report to OCC in Persons making written submissions designated reporting authority for the accordance with CBOE rules. should file six copies thereof with the exercise settlement values of yield- CBOE has been advised that yield Secretary, Securities and Exchange based options on Treasury securities. quotations disseminated by GovPX are Commission, 450 Fifth Street, N.W., based on quotations of bids and offers II. Self-Regulatory Organization’s Washington, D.C. 20549. Copies of the in the Treasury securities market that Statement of the Purpose of, and submission, all subsequent GovPX obtains from five of the six inter- Statutory Basis for, the Proposed Rule amendments, all written statements dealer brokers in that market (Garban, Change with respect to the proposed rule Hilliard Farber, Liberty, RMJ, and change that are filed with the In its filing with the Commission, the Tullett). The bids and offers from these Commission, and all written self-regulatory organization included five inter-dealer brokers represent the communications relating to the statements concerning the purpose of best bids and offers for each Treasury proposed rule change between the and basis for the proposed rule change security obtained from 38 primary Commission and any person, other than and discussed any comments it received dealers.1 At 3:00 p.m. each day GovPX those that may be withheld from the on the proposed rule change. The text selects the best bid and best offer for public in accordance with the of these statements may be examined at each Treasury security from those provisions of 5 U.S.C. 552, will be the places specified in Item IV below. provided by the five inter-dealer available for inspection and copying in The self-regulatory organization has brokers. GovPX then disseminates that the Commission’s Public Reference prepared summaries, set forth in best bid and offer, and a average, for Section, 450 Fifth Street, N.W., Sections A, B, and C below, of the most each Treasury security. CBOE uses that Washington, D.C. 20549. Copies of such significant aspects of such statements. average as its exercise settlement value filing will also be available for A. Self-Regulatory Organization’s for expiring interest rate options.2 CBOE inspection and copying at the principal Statement of the Purpose of, and understands that FRBNY itself is now office of the Amex. All submissions Statutory Basis for, the Proposed Rule using GovPX yield quotes for its own should refer to File Number SR–AMEX– Change internal purposes, instead of the 96–36 and should be submitted by Composite Quotes that it used to obtain December 23, 1996. 1. Purpose from a daily survey of dealers. For the Commission, by the Division of The purpose of the proposed rule 2. Statutory Basis Market Regulation, pursuant to delegated change is to change the designated authority.3 reporting authority for closing exercise The proposed rule change is Margaret H. McFarland, settlement values of yield-based options consistent with Section 6(b) of the Act 3 Deputy Secretary. on Treasury securities (referred to in general and furthers the objective of [FR Doc. 96–30613 Filed 11–29–96; 8:45 am] herein as ‘‘interest rate options’’) from Section 6(b)(5) in particular in that by BILLING CODE 8010±01±M the Federal Reserve Bank of New York providing a reliable source for (‘‘FRBNY’’) to GovPX (‘‘GovPX’’) a determining the exercise settlement leading independent provider of values of interest rate options when the (Release No. 34±37968; File No. SR±CBOE± financial data. On October 3, 1996, the reporting authority previously relied 96±66) FRBNY announced that it was upon for this purpose has discontinued November 20, 1996. discontinuing dissemination of its reporting such values, it will facilitate Composite 3:30 p.m. Quotations for U.S. exercise transactions in these securities Self-Regulatory Organizations; Notice Government Securities. FRBNY and will therefore protect investors and of Filing and Summary Effectiveness disseminated its last Composite the public interest. of Proposed Rule Change by the Quotation on Tuesday, October 15, B. Self-Regulatory Organization’s Chicago Board Options Exchange, Inc. 1996. In accordance with the Statement on Burden on Competition Relating to Changing the Designated designation of FRBNY as the reporting Reporting Authority for the Exercise authority for exercise settlement values The Exchange does not believe that Settlement Values of Yield-Based of interest rate options in Interpretation Options on Treasury Securities the proposed rule change will impose and Policy .01 under Rule 23.1, CBOE any inappropriate burden on Pursuant to Section 19(b)(1) of the had previously used FRBNY quotations competition. Securities Exchange Act of 1934 to determine the exercise settlement C. Self-Regulatory Organization’s (‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is values of interest rate options on the Statement on Comments on the hereby given that on November 5, 1996, yield of the most-recently auctioned 90- the Chicago Board Options Exchange, day, five-year, ten-year and thirty-year Proposed Rule Change Received From Inc. (‘‘CBOE’’ or ‘‘Exchange’’) filed with government securities (IRX, FVX, TNX, Members, Participants, or Others the Securities and Exchange and TYX, respectively). No written comments were either Commission (‘‘Commission’’) the Since FRBNY is no longer solicited or received with respect to the proposed rule change as described in disseminating these values, CBOE has proposed rule change. Items I, II, and III below, which Items determined to designate GovPX as the have been prepared by the self- replacement reporting authority, and 1 Inter-dealer brokers are brokers’ brokers. They regulatory organization. The proposes to amend Interpretation and broker transactions between primary dealers in Commission is publishing this notice to Policy 23.1.01 to reflect this designation Treasury securities. In this role they are well placed solicit comments on the proposed rule and to make a conforming amendment to observe market conditions. change from interested persons. to Interpretation and Policy 23.1.02. 2 Telephone conversation between Eileen Smith, CBOE will use the 3:00 p.m. (Eastern CBOE, and Steve Youhn, SEC, and Heather Seidel, SEC, on November 19, 1996. 3 17 CFR 200.30–3(a)(12). time) yield quotations disseminated by 3 15 U.S.C. 78f(b). Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63887

III. Date of Effectiveness of the For the Commission, by the Division of expiration of the offer.4 However, Proposed Rule Change and Timing for Market Regulation, pursuant to delegated participants with long positions at Commission Action authority. NSCC (‘‘long participants’’) are Margaret H. McFarland, dependent upon the delivery of the The foregoing rule change has been Deputy Secretary. securities by participants with short put into effect summarily under Section [FR Doc. 96–30530 Filed 11–29–96; 8:45 am] positions at NSCC (‘‘short participants’’) 19(b)(3)(B) of the Act and publication of BILLING CODE 8010±01±M prior to the end of the protect period. If notice is being made, pursuant to the short participants do not deliver in time, requirement of Section 19(b)(3)(B) of the the long participants are not able to [Release No. 34±37976; File No. SR±NSCC± Act that proposed rule changes put into 96±15] participate in the offer. effect summarily be filed thereafter in Under its current service, NSCC accordance with the provisions of November 25, 1996. guarantees to participants with long Section 19(b)(1).4 The rule change was positions in some securities subject to a Self-Regulatory Organizations; tender offer the delivery of funds or put into effect summarily pursuant to National Securities Clearing Section 19(b)(3)(B) of the Act because securities pursuant to the terms of the Corporation; Order Approving a tender offer. If a long participant has such action was necessary for the Proposed Rule Change To Process elected to use this service and to have protection of investors, the maintenance Corporate Reorganizations Involving NSCC guarantee the delivery pursuant of fair and orderly markets, or the Elections Through NSCC's Continuous to the terms of the tender offer, certain 5 safeguarding of securities or funds. At Net Settlement System short participants will be liable for any time within 60 days of the filing of On August 7, 1996, the National delivery to the long participant of the such proposed rule change, the Securities Clearing Corporation consideration the long participant Commission may summarily abrogate (‘‘NSCC’’) filed with the Securities and would have received pursuant to the such rule change if it appears to the Exchange Commission (‘‘Commission’’) terms of the tender offer. The rule Commission that such action is the proposed rule change (File No. SR– change expands this service and necessary or appropriate in the public NSCC–96–15) pursuant to Section provides members with long positions interest, for the protection of investors, 19(b)(1) of the Securities Exchange Act in securities subject to a tender offer or otherwise in furtherance of the of 1934 (‘‘Act’’).1 On August 9, 1996, with an election as to consideration to purposes of the Act. and October 1, 1996, NSCC amended receive protection for receipt of the 2 tender offer consideration. IV. Solicitation of Comments the proposed rule change. Notice of the proposal was published in the Federal Once NSCC receives timely notification of a tender offer and starting Interested persons are invited to Register on October 21, 1996.3 No two business days prior to the submit written data, views, and comment letters were received. For the reasons discussed below, the expiration of an offer, long participants arguments concerning the foregoing. and short participants with positions in Persons making written submissions Commission is granting approval of the proposed rule change. the subject security will receive should file six copies thereof with the information regarding the offer each Secretary, Securities and Exchange I. Description business day on the CNS reorganization Commission, 450 Fifth Street, N.W., Through its CNS Reorganization information report. On the day prior to Washington, D.C. 20549. Copies of the Processing System, NSCC offers its the expiration of the protect period in a submission, all subsequent members a service whereby they can tender offer with an option as to the amendments, all written statements process within NSCC’s CNS system consideration to be received, long with respect to the proposed rule transactions in certain securities participants will be permitted to elect change that are filed with the undergoing corporate reorganizations their preferences (e.g., cash or Commission, and all written (hereinafter collectively referred to as securities) by submitting electronic communications relating to the ‘‘tender offers’’). With this rule change, instructions to NSCC through DTC’s proposed rule change between the NSCC will expand this service to allow PTS Terminal system. Such participants Commission and any person, other than its members to obtain a guarantee of will receive a preliminary protection those that may be withheld from the performance pursuant to the terms of report. On the same day, NSCC will public in accordance with the tender offers which require shareholders issue a report to short participants provisions of 5 U.S.C. 552, will be to make an election between two types advising them of their potential liability available for inspection and copying at of assets (e.g., stock or cash) through in the security if delivery is not made the Commission’s Public Reference NSCC’s CNS system. by the next business day. Room. Copies of such filing will also be Generally, a person who wishes to If enough short participants deliver available for inspection and copying at participate in a tender offer must notify securities prior to the close of business the principal office of the Exchange. All the tenderer of its decision prior to the of the day the protect period expires, submissions should refer to File No. expiration of the tender offer. All shares NSCC will redeliver these securities to SR–CBOE–96–66 and should be to be exchanged in the tender offer must long participants. Such participants can submitted by December 23, 1996. be delivered to the tenderer prior to the then participate in the tender offer end of the protect period, which is outside the facilities of NSCC. If not typically three days after the end of the enough short participants deliver 4 The Commission notes that the proposed rule change was summarily approved on October 17, securities to meet all delivery 1996. Telephone conversation between Michael 1 15 U.S.C. § 78s(b)(1) (1988). Meyer, outside counsel to CBOE, and Howard 2 Letters from Julie Beyers, Associate Counsel, 4 The purpose of the protect period is to Kramer, Senior Associate Director, SEC, on October NSCC, to Jerry Carpenter, Assistant Director, accommodate persons who purchase securities on 17, 1996. Division of Market Regulation, Commission (August the expiration date with the intention of 5 The Commission notes that the change ensured 8, 1996, and September 27, 1996, as revised October participating in the tender offer. Such persons that there was a settlement value available for the 1, 1996). generally will not receive the securities to forward yield-based options on Treasury securities. See 3 Securities Exchange Act Release No. 37818 to the tenderer until the settlement date three discussion supra. (October 11, 1996), 61 FR 54695. business days later. 63888 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices obligations to the long participants, proposal provides an incentive to short following the date of service of the NSCC will issue to the remaining long participants to meet their settlement statement of charges upon the participants a final protection report obligations on a timely basis. Short respondent. and will issue to the remaining short participants that fail to meet their Notice of the proposed rule change participants a final liability report, both delivery obligations as required become was published for comment in the of which will reflect open positions liable for the economic benefits long Federal Register on October 23, 1996.3 remaining as of the close of business of participants lose in connection with No comments were received on the that day. tender offers. Furthermore, by proposal. This order approves the At the expiration of the protect processing the deliver and receive proposed rule change. period, NSCC will establish two CNS obligations created through the Currently, PHLX Rule 960.7 allows a subaccounts representing the alternative guarantee through NSCC’s CNS system, respondent in any proceeding under the forms of consideration for each security the proposal will allow such obligations PHLX’s disciplinary rules to submit a subject to a tender offer. All open to be netted against other obligations of written settlement offer to the positions for which a long participant the participants. By reducing the Exchange’s BCC at any time during the has made an election will be moved into number of settlement obligations course of the proceeding. The Exchange the appropriate CNS reorganization through the netting process, the proposes to amend PHLX Rule 960.7 to subaccount. The short participants will proposal facilitates the prompt and limit the time when a respondent may immediately be charged a mark based accurate settlement of securities submit a written settlement offer to the on the difference between the market transactions. BCC to within 120 calendar days value of the subject securities and the III. Conclusion immediately following the date of consideration, and NSCC will retain service of the statement of charges upon such funds.5 In addition, the long On the basis of the foregoing, the the respondent in accordance with positions and short positions will Commission finds that the proposed PHLX Rule 960.11, ‘‘Service of Notice continue to be marked to the market rule change is consistent with the and Extension of Time Limits.’’ Under daily. Positions in a CNS subaccount requirements of the Act and in the proposal, the Exchange may will be frozen until the payable date for particular Section 17A of the Act and schedule a hearing during the 120-day the tender offer (i.e., short participants the rules and regulations thereunder. period immediately following the date It Is Therefore Ordered, pursuant to may not deliver in the securities). of service of the statement of charges or Section 19(b)(2) of the Act, that the On payable date, the subaccounts will as soon as practicable thereafter. proposed rule change (File No. SR– be closed. NSCC will credit the general The purpose of the proposal is to NSCC–96–15) be and hereby is CNS account of long participants with adopt a time limit during which approved. either the securities or cash that they respondents involved in a disciplinary have elected to receive. NSCC will debit For the Commission by the Division of matter before the PHLX’s BCC may the general account of short participants Market Regulation, pursuant to delegated submit settlements offers. Because with either the cash or securities they authority.7 PHLX Rule 960.7 currently allows have been assigned to deliver. NSCC Margaret H. McFarland, settlement offers to be submitted at any also will credit the account of short Deputy Secretary. time, the BCC was concerned that participants with the marks to the offer [FR Doc. 96–30614 Filed 11–29–96; 8:45 am] respondents could intentionally submit price being retained by NSCC. BILLING CODE 8010±01±M Some offers have limits on how many inadequate offers of settlement for the of the subject securities the offeror will sole purpose of delaying a scheduled accept or what percentage of [Release No. 34±37974; File No. SR±PHLX± hearing until the offer is reviewed by consideration will be paid in cash or 96±42] the full BCC. The proposal will allow securities. At the end of the protect the BCC to schedule hearings after the period of such offers, the offeror will Self-Regulatory Organizations; Order 120-day period knowing that there will reject on a pro rata basis excess Approving Proposed Rule Change by not be last minute requests for securities. NSCC will similarly only the Philadelphia Stock Exchange, Inc., continuances based upon late offers of Relating to Limiting Time for hold short participants liable to the settlement. Submission of Settlement Offers extent securities would have been Under proposed Interpretation and Policy .01, the BCC may schedule a accepted by the tenderer. November 22, 1996. hearing during the 120-day period On September 27, 1996, the II. Discussion immediately following the date of Philadelphia Stock Exchange, Inc. 6 service of the statement of charges on Section 17A(b)(3)(F) of the Act (‘‘PHLX’’ or ‘‘Exchange’’) filed with the the respondent.4 The BCC will continue requires that the rules of a clearing Securities and Exchange Commission to have the ability to entertain agency be designed to facilitate the (‘‘SEC’’ or ‘‘Commission’’) a proposed settlement offers after the 120-day prompt and accurate settlement of rule change pursuant to Section 19(b)(1) period if its review does not delay the securities transactions. The Commission of the Securities Exchange Act of 1934 scheduled hearing in the matter. believes that NSCC’s proposal is (‘‘Act’’) 1 and Rule 19b–4 thereunder.2 consistent with this goal because the The proposed rule change amends The PHLX believes that the proposed PHLX Rule 960.7, ‘‘Offers of rule change is consistent with Section 6 5 In the case of a long participant selecting cash Settlement,’’ to limit the time when a of the Act in general, and in particular, as consideration, the corresponding short respondent may submit a written with Section 6(b)(5), in that it is participant will be charged the difference between designed to promote just and equitable the cash offered in the tender offer and the market settlement offer to the PHLX’s Business price of the securities. In the case of a long Conduct Committee (‘‘BCC’’) to within principles of trade, to prevent participant selecting securities as consideration, the 120 calendar days immediately corresponding short participant will be charged the 3 Securities Exchange Act Release No. 37838 difference between the market value of the subject (October 17, 1996), 61 FR 55062. 7 17 CFR 200.30–3(a)(12) (1996). securities and the market value of the consideration 4 Under PHLX Rule 960.5, ‘‘Hearing,’’ a 1 securities. 15 U.S.C. § 78s(b)(1) (1988). respondent must be given at least 15 business days 6 2 15 U.S.C. § 78q–1(b)(3)(F) (1988). 17 CFR 240.19b–4 (1995). notice of the time of a hearing. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63889 fraudulent and manipulative acts and inadequate settlement offers in order to (‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is practices, to foster cooperation and delay a hearing. hereby given that on November 11, coordination with persons engaged in At the same time, the Commission 1996,1 the Philadelphia Stock Exchange regulating, clearing, settling, processing believes that the proposal protects Incorporated (‘‘PHLX’’ or ‘‘Exchange’’) information with respect to, and members’ rights to fair procedures in filed with the Securities and Exchange facilitating transactions in securities, to Exchange disciplinary proceedings. Commission (‘‘Commission’’) the remove impediments to and perfect the Specifically, the proposal allows proposed rule change as described in mechanism of a free and open market respondents to submit settlement Items I, II and III below, which Items 7 and a national market system, as well as offers up to 120 days following the have been prepared by the self- to protect investors and the public date of service of a statement of charges regulatory organization. The Exchange 8 interest by allowing for more upon the respondent. Although a has designated the proposed rule change expeditious completion of disciplinary hearing may be scheduled during the as constituting a ‘‘non-controversial’’ matters. 120-day period, PHLX Rule 960.5 rule change under paragraph (e)(6) of The Commission finds that the provides that a respondent must be Rule 19b–4 under the Act which renders proposed rule change is consistent with given at least 15 business days notice of the proposal effective upon receipt of the requirements of the Act and the the time of a hearing. Accordingly, the 2 rules and regulations thereunder Commission believes that the proposal this filing by the Commission. The applicable to a national securities preserves a respondent’s right to submit Commission is publishing this notice to exchange, and, in particular, the settlement offers and provides a solicit comments on the proposed rule requirements of Section 6(b)(5) 5 in that respondent with adequate time to change from interested persons. it is designed to prevent fraudulent and submit settlement offers, thereby I. Self-Regulatory Organization’s manipulative acts and practices and to providing a fair procedure for the Statement of the Terms of Substance of protect investors and the public interest. disciplining of members, consistent the Proposed Rule Change The Commission also believes that the with Section 6(b)(7). proposal is consistent with Section Finally, the Commission notes that The Exchange proposes to amend 6(b)(7) of the Act because it provides a the rules of the Chicago Board Options Floor Procedure Advice (‘‘Advice’’) F– fair procedure for disciplining Exchange, Inc. (‘‘CBOE’’) also provide a 24, AUTO–X Contra-Party Participation members.6 Specifically, by limiting the 120-day period for submitting (‘‘The Wheel’’), to: (1) eliminate most of time allowed for the submission of settlement offers.9 the sign-on and sign-off provisions; (2) settlement offers, the Commission It is therefore ordered, pursuant to rotate the Wheel in two, five and ten lot believes that the proposal should Section 19(b)(2) of the Act,10 that the increments, depending on the size of the facilitate the PHLX’s efforts to provide proposed rule change (SR–PHLX–96– trading crowd’s AUTO–X guarantee, as prompt, effective, and meaningful 42) is approved. opposed to ten lot increments, as is discipline for violations of Exchange For the Commission, by the Division of currently stated in Advice F–24; (3) rules and the federal securities laws. In Market Regulation, pursuant to delegated authority.11 permit two Floor Officials to require all addition, by minimizing opportunities assigned ROTs to participate on the Margaret H. McFarland, for delay, the proposal should help to Wheel; and (4) update the text with Deputy Secretary. preserve evidence and the availability of minor revisions. The Wheel is an witnesses, thereby enhancing the [FR Doc. 96–30526 Filed 11–29–96; 8:45 am] automated mechanism for assigning quality, consistency, and fairness of the BILLING CODE 8010±01±M floor traders (Specialists and Registered Exchange’s disciplinary proceedings Option Traders (‘‘ROTs’’)) on a rotating and enabling the PHLX to better enforce basis, as contra-side participants to compliance by its members with the [Release No. 34±37977; File No. SR±PHLX± 96±49] Exchange’s rules and the federal AUTO–X orders. AUTO–X is the automatic execution feature of the securities laws. By facilitating the Self-Regulatory Organizations; Notice prompt resolution of disciplinary Exchange’s Automated Options Market of Filing and Immediate Effectiveness 3 proceedings, the proposal also will (‘‘AUTOM’’) system, which provides of Proposed Rule Change by the customers with automatic executions of promote efficiency in the use of the Philadelphia Stock Exchange, Exchange’s resources. Incorporated, Relating to Amending 1 The PHLX states that because PHLX On November 20, 1996, the PHLX filed Floor Procedure Advice F±24, The Amendment No. 1 with the Commission. Rule 960.7 currently allows settlement Wheel Amendment No. 1 constitutes a substantive change offers to be submitted at any time, the in the proposal in that it redesignates the proposal Exchange’s BCC was concerned that November 25, 1996. as a ‘‘noncontroversial’’ rule filing under Rule 19b– respondents could intentionally submit Pursuant to section 19(b)(1) of the 4(e)(6) rather a 19b–4(e)(5). The amendment also inadequate offers of settlement for the Securities Exchange Act of 1934 states that the Exchange intends to monitor the sole purpose of delaying a scheduled operation of the Wheel for excessive sign-on and sign-off practices by ROTs, and that Wheel hearing until the offer is reviewed by 7 A respondent may submit more than one the full BCC. The Commission believes settlement offer during the 120-day period. participation is mandatory for specialists. See Letter Telephone conversation between Michele R. from Philip H. Becker, Senior Vice President, Chief that the proposed time limit for Weisbaum, Vice President and Associate General Regulatory Officer, PHLX, to Michael Walinskas, submitting settlement offers should Counsel, PHLX, and Yvonne Fraticelli, Attorney, Senior Special Counsel, Division of Market allow the PHLX’s disciplinary Office of Market Supervision, Division of Market Regulation, Commission, dated November 19, 1996. proceedings to progress promptly by Regulation, Commission, on October 2, 1996. 2 The Exchange has requested that this proposal preventing members from submitting 8 The proposal allows the BCC to consider be implemented on December 13, 1996. The settlement offers submitted after the 120-day period Exchange has represented that this proposed rule as long as consideration of an offer does not delay change: (i) will not significantly affect the 5 15 U.S.C. § 78f(b)(5) (1988). the hearing in the matter. protection of investors or the public interest; (ii) 6 In approving this rule, the Commission has 9 See CBOE Rule 17.8(a), ‘‘Offers of Settlement.’’ considered the proposed rule’s impact on will not impose any significant burden on efficiency, competition, and capital formation. 15 10 15 U.S.C. § 78s(b)(2) (1988). competition; and (iii) will not become operative for U.S.C. § 78c(f). 11 17 CFR 200.30–3(a)(12) (1995). 30 days after the date of the filing. 3 AUTOM is an electronic order routing system for options orders. 63890 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices eligible option orders at displayed specialist. Also, AUTO–X volume by no later than 9:30 AM on that day. markets. represents a small percentage of If not signed on by 9:30 A.M., an ROT Exchange options volume. In addition, may be added to the Wheel for all or any II. Self-Regulatory Organization’s the Exchange notes that quote spread portion of the half-day session, Statement of the Purpose of, and parameters help ensure that markets commencing at 12:30 P.M., by signing- Statutory Basis for, the Proposed Rule remain within certain limits. In fact, on in person at any time during that Change with the Wheel in effect, specialists will morning session. An ROT may sign-off In its filing with the Commission, the be freed of the manual process of the Wheel at any time during the trade self-regulatory organization included inserting ROTs at parity as contra-side day. An ROT signed-on for an entire day statements concerning the purpose of participants, which may better enable may sign-off up to twice during that day and basis for the proposed rule change specialists to monitor and perhaps and still be eligible to sign-on again on and discussed any comments it received improve markets. that day, but a third sign-off in the same on the proposed rule change. The text Due to technical delays associated day will cause that ROT to become of these statements may be examined at with balancing various option ineligible for the Wheel for the the places specified in Item IV below. automation projects, the Wheel has not remainder of that trade day. An ROT The self-regulatory organization has yet been implemented, but is currently who has signed-on for the half-day prepared summaries, set forth in scheduled for implementation by the session may sign-off once during that sections A, B and C below, of the most end of 1996. The Exchange continues to session and still be eligible to sign-on significant aspects of such statements. believe that the Wheel offers important again for that session, but a second sign- benefits to AUTO–X participants, as off during that half-day session will A. Self-Regulatory Organization’s stated above. cause that ROT to be ineligible for the Statement of the Purpose of, and Currently, respecting AUTO–X orders, Wheel for the remainder of that session. Statutory Basis for, the Proposed Rule as stated in the proposal to adopt the The limitations on the number of Change Wheel, floor trader contra-side sign-ons and sign-offs per day as well as 1. Purpose participation defaults to the account of the requirement that an ROT sign-on by the specialist if no step is taken to 9:30 A.M. are being deleted. The The Exchange’s Wheel provisions manually add the participation of an Exchange does not want to limit Wheel were approved by the Commission in ROT. The specialist is the party who 4 participation by imposing stringent 1994 as Advice F–24. These provisions manually enters ROT participation. sign-on/sign-off requirements. However, do not currently appear in any other ROTs are eligible for participation when 5 the Exchange realizes that if experience Exchange rules. The purpose of the they have established priority or parity gained through operation of the Wheel Wheel is to increase the efficiency and at the execution price. Consequently, demonstrates that such requirements are liquidity of order execution through before contra-side information can be needed, the Options Committee will AUTO–X by including all floor traders added, the trading crowd has to resolve consider such changes. Certain in the automated assignment of contra- among itself which floor trader(s) had provisions concerning sign-on and sign- parties to incoming AUTO–X orders. priority or parity at the execution price. off will remain in effect. ROTs will The Wheel is intended to make AUTO– Quite often, several floor traders are on continue to be subject to certain log-on X more efficient, as contra-side parity, thus requiring keypunch entries requirements, including that an ROT participation will be assigned for each such trader. The more contra- sign-on in person on the trading floor in automatically, and no longer be entered side participants that must be added to individual listed options. Sign-offs are manually. The Wheel is also intended to a trade, the more of a delay there is in effective immediately for all options for promote liquidity by including ROTs, as processing the participant information which the ROT is on the Wheel, and a opposed to solely specialists, as a to the trade and the more the process sign-off shall be effective immediately contra-side to AUTO–X orders. becomes prone to keypunch errors and upon being processed for deletion in the The Exchange does not believe that additional manual paperwork. The system. Also, no two associated or the proposed amendments will impair implementation of the proposed rule dually affiliated ROTs may be on the the price or time of the AUTO–X change to the Wheel will automatically Wheel for the same option at the same executions or the quality of markets for include eligible ROTs in AUTO–X time. In addition, to address the concern PHLX-listed options. The Wheel affects executions according to a specific expressed by the Commission that ROTs only who the contra-side participant rotation procedure, thus reducing the fulfill their market making obligations, may be, not the process, price or time manual inclusion of ROTs as contra- the Exchange will monitor the operation of the actual execution. The Exchange side participants. An additional result of of the Wheel for indications of excessive does not believe that the market making the change will be that ROTs on parity sign-on and sign-off practices by ROTs, and AUTO–X burden of the specialists who are not signed-on the Wheel will through terminal access to sign-on and will be increased by Wheel not participate in AUTO–X trades. The sign-off information for each ROT and implementation, even if a particular Exchange believes that the inability of the next-day reports. Wheel only consists of specialist ROTs at parity to participate in AUTO– The Exchange emphasizes that the participation. For example, the X trades absent Wheel participation will specialist’s obligations respecting Exchange does not believe that a be a strong incentive for Wheel sign-on. AUTO–X and the Wheel are obligatory specialist, alone on the Wheel, would Several changes to the Wheel are and central to the specialist function. disseminate wider markets, because the proposed at this time, as listed above. Floor Procedure Advice (‘‘Advice’’) A– specialist would only be impairing his First, certain sign-on and sign-off 13 requires specialists to engage AUTO– own business and reputation as a provisions are being deleted in order to X within three minutes of completing an encourage maximum participation on opening or reopening rotation. This 4 Securities Exchange Act Release No. 35033 the Wheel. Currently, in order to be means that AUTO–X participation is (November 30, 1994), 59 FR 63152 (December 7, placed on the Wheel for an entire trade required for specialists. Advice F–24 1994). 5 Separately, the Exchange intends to incorporate day, PHLX requirements state that the concerning the Wheel also specifically the Wheel provisions, as amended, into an AUTOM respective ROT must sign-on, in person states that specialists on the options Rule. on the trading floor for that listed option floor are required to participate on the Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63891

Wheel in assigned issues. Also, the there are only two participants, the split B. Self-Regulatory Organization’s mandatory nature of the Wheel for would be six contracts and four Statement on Burden on Competition specialists was stated in the original contracts, respectively. A 50 lot AUTO– The Exchange does not believe that proposed rule change to adopt the X order received in FNM options would the proposed rule change will impose Wheel and in the Commission’s also be split among five participants, any burden on competition. approval order.6 due to its 50-up guarantee. The Second, the purpose of amending the Exchange notes that the size of the C. Self-Regulatory Organization’s Wheel rotation and assignment process AUTO–X guarantee is displayed in the Statement on Comments on the is to expand the number of automatic trading crowd along with the markets Proposed Rule Change Received From participants to each AUTO–X trade. for the option as well as published Members, Participants, or Others Currently, paragraph (e) details the periodically as an Exchange Written comments on the proposed rotation of trades among Wheel memorandum to the options rule change were neither solicited nor participants. Specifically, the specialist membership. received. receives the first execution of the day in III. Date of Effectiveness of the each respective listed option. Thirdly, paragraph (d) currently Proposed Rule Change and Timing for Thereafter, the Wheel would have permits a Floor Official to modify the Commission Action rotated among participants in ten-lot aforementioned sign-on/sign-off increments. For those AUTO–X orders procedures in extraordinary This proposed rule change has been greater than ten contracts, each circumstances. The Exchange is filed by the Exchange as a additional ten-lot or remaining portion proposing to add the ability of two Floor ‘‘noncontroversial’’ rule change thereof would have been assigned to the Officials to require Wheel participation pursuant to paragraph (e)(6) of Rule next individual Wheel participant. in extraordinary circumstances. This 19b–4.9 Consequently, the rule change Under the proposal, the Wheel will ability is limited to ROTs assigned in shall become operative 30 days after the rotate in increments depending upon that option and situations where date of filing, or such shorter time as the the size of the crowd’s AUTO–X liquidity is required. Stating that two Commission may designate, if guarantee, as follows: Floor Officials may require all assigned consistent with the protection of 1–10 contracts ...... Every 2 ROTs to sign-on the Wheel is intended investors and the public interest contracts. to prevent unfairly singling out certain pursuant to Section 19(b)(3)(A)(iii) of 11–25 contracts ...... Every 5 ROTs; where liquidity is needed, all the Act 10 and subparagraph (e)(6) of contracts. assigned ROTs should be obligated to Rule 19b–4 thereunder. 26 and more ...... Every 10 participate on the Wheel. This new The proposed rule change was contracts. requirement is consistent with the originally submitted to the Commission For customer orders, Phlx Rule affirmative market making obligations on November 11, 1996. However, the 1033(a) requires that markets be firm for imposed by Rule 1014. Thus, submission of substantive Amendment ten contracts, which serves as the implementing the Wheel should No. 1 on November 20, 1996 delays the statutorily required implementation minimum AUTO–X guarantee. The fact promote just and equitable principles of 11 that the Wheel will begin its rotation in trade and investor protection. date to December 20, 1996. The a random place each day after the Commission is shortening the 30 day Lastly, the Exchange is proposing to delayed implementation period to allow specialist’s first execution of the day is modify certain language in Advice F–24 being added into the provision. The the rule change to be implemented on for clarity, such as adding paragraph December 13, 1996. The Commission maximum size of an AUTO–X guarantee headings. believes that accelerated is 50 contracts.7 The remainder of the implementation is appropriate in order provision remains unchanged, such that 2. Statutory Basis to prevent any longer delay to the if there are five or more ROTs signed PHLX’s implementation of the Wheel, a onto the Wheel, the specialist will The Exchange believes that the program that has already been delayed receive every fifth execution, in proposed rule change is consistent with 8 for two years since its original approval. addition to being assigned to the first Section 6(b) of the Act in general, and The Commission believes that further AUTO–X order in the option. in particular, with Section 6(b)(5), in delay would not be beneficial to the The Options Committee has that the amendments are designed to protection of investors or the public determined that this rotation process promote just and equitable principles of trade, prevent fraudulent and interest. should encourage Wheel participation At any time within 60 days of the manipulative acts and practices, to and allot trades more fairly by dividing filing of such proposed rule change,12 foster cooperation and coordination each trade among more participants, the Commission may summarily with persons engaged in regulating, such that each participant will abrogate such rule change if it appears clearing, settling, processing participate in a greater number and to the Commission that such action is information with respect to, and variety of AUTO–X executions. As an necessary or appropriate in the public example of the proposed rotation facilitating transactions in securities, as process, in AQL, for which the well as to protect investors and the 9 17 CFR 240.19b–4(e)(6). guarantee is ten contracts, a ten lot public interest, by promoting ROT 10 15 U.S.C. 78s(b)(3)(A)(iii). AUTO–X order would be split evenly participation as contra-parties to AUTO- 11 The Commission notes that any substantive among five Wheel participants, or where X trades and reducing opportunities for amendment to a proposed rule change filed under keypunching errors through increased section (e)(6) of Rule 19b–4 causes the thirty day delayed implementation period to be restarted, from automation. The Exchange believes that the date of the filing of the amendment. See 6 See Securities Exchange Act Release No. 35033 the proposed amendments to Wheel Securities Exchange Act Release No. 35123 (November 30, 1994), 59 FR 63152 (December 7, procedures should encourage Wheel (December 28, 1994), 59 FR 66692 (December 28, 1994) at n.9. participation. 1994). 7 Securities Exchange Act Release No. 36601 12 The 60 day abrogation period commences from (December 18, 1995), 60 FR 66817 (December 18, November 20, 1996, the date of the submission of 1996). 8 15 U.S.C. 78f(b). substantive Amendment No. 1. 63892 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices interest, for the protection of investors, Dated: July 30, 1996. United States Delegation to the 38th or otherwise in furtherance of the Frank R. Provyn, Session of the Subcommittee on Ship purposes of the Act. Managing Director, Office of International Design and Equipment, International Conferences. Maritime Organization (IMO) London, IV. Solicitation of Comments January 23–27, 1995 United States Delegation to the Interested persons are invited to Telecommunications Standardization Representative submit written data, views and Advisory Group (TSAG) and Joint arguments concerning the foregoing. Meeting of Telecommunications Gordon D. Marsh, Captain, Chief, Persons making written submissions Standardization Advisory Group and Marine Technical and Hazardous should file six copies thereof with the the Radiocommunications Advisory Materials Division, Office of Marine Secretary, Securities and Exchange Group (RAG), International Safety, Security and Environmental Protection, U.S. Coast Guard, Commission, 450 Fifth Street, N.W., Telecommunication Union (ITU), Department of Transportation Washington, D.C. 20549. Copies of the Geneva, January 23, 1995 submission, all subsequent Representative Alternative Representative amendments, all written statements Wayne Lundy, Engineering Branch, with respect to the proposed rule Earl S. Barbely, Director, Marine Technical and Hazardous change that are filed with the Telecommunications and Information Standards, Office of International Materials Division, Office of Marine Commission, and all written Communications and Information Safety, Security and Environmental communications relating to the Policy, Bureau of Economic and Protection, U.S. Coast Guard, proposed rule change between the Business Affairs, Department of State Department of Transportation Commission and any person, other than those that may be withheld from the Advisers Advisers public in accordance with the Douglas V. Davis, Attorney Adviser, Roger K. Butturini, Lieutenant provisions of 5 U.S.C. 552, will be International Bureau, Federal Commander, Engineering Branch, available for inspection and copying in Communications Commission Marine Technical and Hazardous the Commission’s Public Reference Ali Ghovanlou, Senior Materials Division, Office of Marine Room. Copies of such filing will also be Telecommunications Adviser, Office Safety, Security and Environmental available for inspection and copying at of International Communications and Protection, U.S. Coast Guard, the principal office of the Exchange. All Information Policy, Bureau of Department of Transportation submissions should refer to File No. Economic and Business Affairs, Philip R. Alman, Ship Design Branch, SR–PHLX–96–49 and should be Department of State Marine Technical and Hazardous submitted by December 23, 1996. William Utlaut, Director, Institute for Materials Division, Office of Marine Telecommunication Sciences, For the Commission, by the Division of Safety, Security and Environmental National Telecommunications and Market Regulation, pursuant to delegated Protection, U.S. Coast Guard, Information Administration, authority.13 Department of Transportation Department of Commerce, Boulder, Margaret H. McFarland, Colorado Private Sector Advisers Deputy Secretary. [FR Doc. 96–30611 Filed 11–29–96; 8:45 am] Private Sector Advisers Gregory Shark, American Bureau of Shipping, New York, NY 10048 BILLING CODE 8010±01±M Richard P. Brandt, DB Consulting, Annandale, New Jersey Paul Leblanc, McDermott Incorporated, Raymond B. Crowell, Director, Industry P.O. Box 188, Morgan City, LA and Government Planning, COMSAT 70381–0188 DEPARTMENT OF STATE Corporation, Bethesda, Maryland United States Delegation to the Working Gary Fishman, Technical Standards Party on Gas, Fifth Session, Economic [Public Notice 2420] Director, AT&T, Bedminster, New Commission for Europe (ECE), Geneva, Jersey January 23–25, 1995 Participation of Private-Sector Otto J. Gusella, Executive Director, Representative Representatives on U.S. Delegations Alliance for Telecommunications Industry Solutions (ATIS), Frederic Maerkle, Chief, Energy Washington, D.C. As announced in Public Notice No. Consuming Countries Division, Office George Helder, Consultant, Picturetel 655 (44 FR 17846), March 23, 1979, the of International Energy Policy, Bureau Corporation, Moraga, California Department is submitting its January 9, of Economic and Business Affairs, Richard Holleman, Director, Standards 1995—December 15, 1995 list of U.S. Department of State accredited Delegations which included Practices, IBM Corporation, Purchase, New York Alternate Representative private-sector representatives. Anita Kaufman, MCI Corporation, Rye Publication of this list is required by Brook, New York William R. Falkner, United States Article III (c) of the guidelines Roger Nucho, Director of Standards, Bell Mission, Geneva published in the Federal Register on Atlantic, Arlington, Virginia Private Sector Adviser March 23, 1979. Arthur Reilly, BELLCORE, Red Bank, New Jersey R. Allan Bradley, Senior Vice President, Robert J. Smith, Director, Science and Coastal Pan American Corporation, Technology, NYNEX Corporation, Houston, Texas Cambridge, Massachusetts Thomas C. Briggs, Vice President- Martin Sullivan, Director, BELLCORE, Regulatory Affairs, Enron-Europe, 13 17 CFR 200.30–3(a)(12). Red Bank, New Jersey Ltd., London, England Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63893

United States Delegation to the 40th United States Delegation to the Twenty- Development, American Bureau of Session of the Sub-Committee on Third Session of the Working Group on Shipping, Houston, Texas Radiocommunications, International International Contract Practices, United Douglas B. Stevenson, Director, Center Maritime Organization (IMO), London, Nations Commission on International for Seafarers’ Rights, New York, New January 16–20, 1995 Trade Law (UNCITRAL), New York, York January 9–20, 1995 Representative United States Delegation, Permanent Representative Consultative Committee I, Inter- Benjamin M. Chiswell III, Captain, James Byrne, George Mason School of American Telecommunications Chief, Telecommunications Law, Arlington, Virginia Commission (CITEL), Organization of Management Division, U.S. Coast American States (OAS), Tegucigalpa, Guard, Department of Transportation Alernate Representative Honduras, February 20–24, 1995 Boris Kozolchyk, School of Law, Alternate Representative Representative University of Arizona, Tucson, Earl S. Barbely, Director, Joseph D. Hersey, Jr., Electronics Arizona Telecommunications and Information Engineer, U.S. Coast Guard, Adviser Standards, Office of International Department of Transportation Harold S. Burman, Office of Assistant Communications and Information Advisers Legal Adviser for Private International Policy, Bureau of Economic and Law, Office of the Legal Adviser, Business Affairs, Department of State Roy Soluri, Hydrographic/Topographic Department of State Advisers Center, Defense Mapping Agency, Bethesda, MD Private Sector Adviser Douglas V. Davis, Attorney Adviser, Jim Ayres, Physical Scientist, Scientific James G. Barnes, Baker & McKennzie, Federal Communications Commission Robert Stevens, International Bureau, Adviser for Hydrography, Chicago, Illinois Federal Communications Commission Headquarters, Defense Mapping United States Delegation to the Sub- Agency, Fairfax, VA Committee on Flag State Private Sector Advisers Richard Swanson, International Bureau, Implementation (FSI), Third Session, Raymond Crowell, Director, Industry Federal Communications Commission International Maritime Organization, and Government Planning, COMSAT London, February 20–24, 1995 Dan Lemon, Chief, Search and Rescue World Systems, Bethesda, Maryland Coordination Branch, U.S. Coast Representative David Fine, Assistant Vice President, Government and International Guard, Department of Transportation Norman W. Lemley, Director, Oil Relations, Southwestern Bell, Private Sector Advisers Pollution Act (OPA) Staff, Office of Washington, D.C. Marine Safety, Security and Ileana Fleites-LaSalle, Senior Market Robert J. Oslund, Director of External Environmental Protection, United Planner, AT&T, Holmdel, New Jersey Affairs, COMSAT Maritime Services, States Coast Guard, Department of Otto J. Gusella, Executive Director, Clarksburg, MD Transportation Alliance for Telecommunications John C. Fuechsel, Springfield, VA Alternate Representative Industry Solutions, Washington, D.C. Andrew J. Haire III, Senior Manager, Marshall E. Gilbert, Rear Admiral, George M. Williams, Captain, Chief, International Regulatory Affairs, MCI Gilbert and Associates, Arlington, VA Merchant Vessel Inspection and Communications Corporation, Documentation Division, Office of United States Delegation to the Meeting Washington, D.C. Marine Safety, Security and Thomas J. Plevyak, Manager, of Experts on Pollution and Energy, Environmental Protection, United Twenty-Ninth Session, Economic International Studies, Bell Atlantic, States Coast Guard, Department of Arlington, Virginia Commission for Europe (ECE), Geneva, Transportation January 16–19, 1995 Arthur Reilly, Bellcore, Red Bank, New Advisers Jersey Representative M.N. Woinsky, Senior Manager, Larry G. Gibson, Captain, Chief Marine Northern Telecom Inc., Morristown, Investigation Division, Office of Thomas Baines, Senior Technical New Jersey Adviser, Office of Mobile Sources, Marine Safety, Security and Office of Air and Radiation, Environmental Protection, United United States Delegation to the 27th Environmental Protection Agency, States Coast Guard, Department of Session of the Subcommittee on Ann Arbor, Michigan Transportation Standards of Training and John M. Holmes, Chief, Compliance and Watchkeeping (STW), International Private Sector Advisers Enforcement Branch, Merchant Vessel Maritime Organization, London, Inspection and Documentation February 6–10, 1995 Donald C. Dowdall, Caterpillar Division, Office of Marine Safety, Representative Incorporated, Peoria, Illinois Security and Environmental Marcel Halberstadt, American Protection, United States Coast Guard, Joseph J. Angelo, Deputy Chief, Office of Automobile Manufacturers Department of Transportation Marine Safety, Security and Association, Detroit, Michigan Environmental Protection, United Private Sector Advisers States Coast Guard, Department of Robert A. Jorgensen, Engine Gregory Shark, Regulatory Affairs Transportation Manufacturers Association, Chicago, Office, American Bureau of Shipping, Illinois New York, New York Alternate Representative John S. Spencer, Vice President, Christopher M. Young, Acting Chief, Technology and Business Vessel Manning Branch, Merchant 63894 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Vessel Personnel Division, Office of Private Sector Advisers Michael Kaplan, Office of Multilateral Marine Safety, Security and Spiros Demolitsas, Standards Engineer, Development Banks, Department of Environmental Protection, United COMSAT Laboratories, Clarksburg, Treasury States Coast Guard, Department of Maryland Daniel L. Albritton, Director, Aeronomy Transportation Thomas Hanson, Senior Engineering Laboratory, National Oceanic and Advisers Associate, Corning Inc., Corning, New Atmospheric Administration, York Department of Commerce Scott Glover, Commander, Merchant Fred W. Huffman, Standards Engineer, Edward R. Williams, Director, Office of Vessel Personnel Division, Office of MCI Communications Corporation, Marine Safety, Security and Environmental Analysis, Policy, Piscataway, New Jersey Planning and Analysis, Department of Environmental Protection, United David J. Lindbergh, Coordinator for Energy States Coast Guard, Department of Standards, Picturtel Corporation, Transportation Danvers, Massachusetts Dirk Forrister, Special Assistant for Taylor Jones, Director, Office of Ronald R. Murphy, Technical Staff, Environment, Office of the Secretary, Maritime Labor, Training, And Safety, Bellcore, Red Bank, New Jersey Department of Energy Maritime Administration, Department Richard Schaphorst, President, Delta Paul M. Stolpman, Director, Office of of Transportation Information Systems, Horsham, Atmospheric Programs, Department of J. Ashley Roach, Office of The Assistant Pennsylvania Energy Anthony Schiano, Senior Engineer, Legal Advisor For Oceans, Abraham E. Haspel, Deputy Assistant AT&T, Bedminster, New Jersey International Environmental And Secretary, Office of Economic and Scientific Affairs, Office of the Legal United States Delegation to the United Environmental Policy, Department of Adviser, Department of State Nations Intergovernmental Negotiating Energy Cynthia Stowe, Lieutenant, Merchant Committee (INC) for a Framework Dennis Tirpak, Director, Global Climate Vessel Personnel Division, Office of Convention on Climate Change, Marine Safety, Security and Change Division, Office of Policy, Eleventh Session, New York, February Planning and Evaluation, Environmental Protection, United 6–17, 1995 States Coast Guard, Department of Environmental Protection Agency Transportation Representative Gary R. Evans, Special Assistant for Richard Swanson, International Liaison Rafe Pomerance, Deputy Assistant Global Change, Science and Staff, Federal Communications Secretary, Bureau of Oceans and Education, Office of the Secretary, Commission International Environmental and Department of Agriculture Private Sector Advisers Scientific Affairs, Department of State United States Delegation to the Sub- Joe Cox, Vice President, American Alternate Representative Committee on Containers and Cargoes, 34th Session, International Maritime Institute of Merchant Shipping, Daniel A. Reifsnyder, Director, Office of Organization, London, March 27–31, Washington, D.C. Global Change, Bureau of Oceans and 1995 William Eglinton, Seafarers International Environmental and International Union, Piney Point, Scientific Affairs, Department of State Representative Maryland Theophilius B. Houston, Jr., President, Congressional Staff Advisers Peter A. Popko, Commander, Assistant Houston Marine Training Service, Catherine Van Way, Counsel, Chief, Merchant Vessel Inspection Kenner, Louisiana Committee on Commerce, United and Documentation Division, Office Edward V. Kelly, Vice President, States House of Representatives of Marine Safety, Security and American Maritime Officers, Shirley Neff, Professional Staff, Environmental Protection, United Washington, D.C. Minority Committee on Energy and States Coast Guard, Department of William H. Moore, American Bureau of Natural Resources, United States Transportation Shipping, New York, New York Senate Alternate Representative David Garman, Professional Staff, United States Delegation to Study Majority Committee on Energy and Robert Gauvin, Standards Development Group 15 (Transmission Systems and Natural Resources, United States Branch, Merchant Vessel Inspection Equipment), Telecommunication Senate and Documentation Division, Office Standardization Sector, International Advisers of Marine Safety, Security and Telecommunication Union (ITU), Environmental Protection, United Geneva, February 6–17, 1995 Susan Biniaz, Assistant Legal Advisor States Coast Guard, Department of for Oceans, Environment and Science, Representative Transportation Office of the Legal Advisor, Gary M. ereno, Director for CITEL and Department of State Advisers ITS–TS Standards Policy, Jonathan C. Pershing, Science Officer, International Communications aand Office of Global Change, Bureau of Frank K. Thompson, Hazardous Information Policy, Bureau of Oceans and International Materials Branch, Marine Technical Economic and Business Affairs, Environmental and Scientific Affairs, and Hazardous Materials Division, Department of State Department of State Office of Marine Safety, Security and Linnea Bohn, Environment Officer, Environmental Protection, United Advisers United States Mission to the United States Coast Guard, Department of Robert Konrath, Telecommunications Nations Transportation Attache, United States Mission, Thomas F. Hourigan, International Roy H. Barrett, Deputy Director, Food Geneva Environmental Policy Analyst, Office Safety and Technical Services, Gary Rekstad, Electronics Engineer, of International Donor Programs, Foreign Agricultural Service, United National Communications System Agency for International Development States Department of Agriculture Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63895

Private Sector Advisers United States Delegation to the United States Delegation to the Working International Civil Aviation Party on the Facilitation of James J. McNamara, Captain, President, Organization (ICAO), Communications/ International Trade Procedures and its National Cargo Bureau, Inc., New Operations Divisional Meeting, Subgroups, Economic Commission for York, New York Montreal, March 27–April 7, 1995 Europe (ECE), Geneva, March 20–24, Edward P. Boyle, Captain, Technical 1995 Representative Consultant, National Cargo Bureau, Representative Inc., New York, New York Ronald Morgan, Director, Office of Bernestine Allen, Chief, International Jack A. Coleman, Technical Consultant, System Architecture and Program Cooperation and Trade Division, North American Export Grain Evaluation, Federal Aviation Office of International Transportation Association, Washington, District of Administration, Department of and Trade, Department of Columbia Transportation Transportation George Smith, Technical Section— Alternate Representative Advisers Containers, ABS Industrial Verification, Inc., Houston, Texas Anthony Broderick, Associate Vicki Hodziewich, Customs Attache, Administrator for Regulation and United States Mission to the European United Sttes Delegation to the Certification, Federal Aviation Union, Brussels International Maritime Organization Zia Kazimi, International Transportation Administration, Department of (IMO), 26th Session, Sub-Committee on Specialist, Office of International Transportation Lifesaving, Search and Rescue (LSR), Transportation and Trade, London, March 27–31, 1995 Advisers Department of Transportation Roy G. Saltman, Computer Scientist, Representative Richard Arnold, Integrated Product Computer Systems Laboratory, Robert L. Markle, Jr., Merchant Vessel Team Leader for Global Positioning National Institute of Standards and Inspection and Documentation System and Navigation, Federal Technology, Department of Commerce Aviation Administration, Department Division, Office of Marine Safety, Private Sector Advisers of Transportation Security and Environmental Irvin W. Chmielewski, Pan American Protection, United States Coast Guard, Gregory Burke, Division Operations EDIFACT Board Rapporteur, Department of Transportation Manager Communications system Electronic Data Systems, Troy, Engineering, Systems Engineering Alternate Representative Michigan Service, Federal Aviation Robert T. Crowley, Chairman, American Danny E. Lemon, Search and Rescue Administration, Department of National Standards Institute’s X–12 Division, Office of Navigation Safety Transportation Committee, C.W. Consultants, Lodi, and Waterway Services, United States Frank Colson, Executive Director, New Jersey Coast Guard, Department of Department of Defense Policy Board Nicole Willenz Gardner, Vice Chair of Transportation on Federal Aviation, United States Air WP4 Group of Experts, Price Force, Department of Defense Waterhouse, Washington, D.C. Advisers Robert Hurd, Chairman, WP4 Message Victor Foose, Manager, Spectrum Design Guidelines Group, Washington Kurt J. Heinz, Merchant Vessel Planning and International Division, Publishing Company, Gaithersburg, Inspection and Documentation Office of Spectrum Policy and Maryland Division, Office of Marine Safety, Management, Federal Aviation William H. Kenworthey, Jr., Chair, ISO/ Security and Environmental Administration, Department of IEC/JTC1/SC14 WG4, Chair, X3L8/ Protection, United States Coast Guard, Transportation ANSI, Consultant, Silver Spring, Department of Transportation Brandy Lohse, Electronics Engineer, Maryland Rajiv Khandpur, Merchant Vessel Spectrum Planning and International Jeffrey B. Ritter, Legal Adviser and Co- Rapporteur on Legal Questions, Inspection and Documentation Division, Office of Spectrum Policy Electronic, Commerce, Law and Division, Office of Marine Safety, and Management, Federal Aviation Security and Environmental Information Policy Strategies, Administration, Department of Columbus, Ohio Protection, United States Coast Guard, Transportation Department of Transportation Gaile L. Spadin, PAEB Database, Norman Solat, International Technical Publications and Maintenance Private Sector Advisers Program Manager, Federal Aviation Administrator, EDIFACT Technical Administration, Brussels, Belgium Assessment Group Secretariat, Data James Karl Nelson, Jr., Associate James Williams, Navigation Systems Interchange Standards Association, Professor and Program Director, Inc., Alexandria, Virginia Master of Engineering Program, Program Manager, Aircraft Clemson University, Charleston, Certification Service, Federal Aviation United States Delegation to Study South Carolina Administration, Department of Group 3 (Tariff and Accounting Elizabeth M. Lynn, Associate Professor Transportation Principles), Sub-Working Parties 2/3 and 3/3, Telecommunication of Communications, GMI Engineering Private Sector Adviser Standardization Sector, International and Management Institute, Flint, Telecommunication Union, Atlanta, Michigan Raymond Hilton, Director, Air Traffic March 20–24, 1995 William R. Kuenzel, Director of Management, Airline Transport Marketing and Sales, SMR Association of America, Washington, Representative Technologies, Inc., Sharon Center, District of Columbia Earl S. Barbely, Director, Ohio Telecommunications and Information 63896 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Standards, International The Honorable Sally Shelton, Assistant Maely T. Tom, Senior Vice-President, Communications and Information Administrator, Global Affairs, Agency Cassidy and Associates, Sacramento, Policy, Bureau of Economic and for International Development California. Business Affairs, Department of State Advisers United States Delegation to the Thirty- Private Sector Advisers Judith Heumann, Assistant Secretary, Ninth Session of the Commission on the Donald P. Casey, Director, Regulatory, Department of Education Status of Women, United Nations AT&T Easy Link, Parsippany, New Sarah Kovner, Special Assistant to the Economic and Social Council Jersey Secretary, Department of Health and (ECOSOC), New York, March 15–April Robert Madden, Manager, American Human Services 4, 1995 Telephone and Telegraph Company, Margaret Lycette, Director, Women in Representative Morristown, New Jersey Development, Agency for Marcel Scheidegger, MCI International, International Development The Honorable Madeleine K. Albright, Rye Brook, New York Ellen Marshall, Acting Coordinator for Ambassador, United States Permanent Richard W. Stone, Cable and Wireless Population, Bureau of Population, Representative to the United Nations. Communications, Vienna, Virginia Refugees, and Migration, Department Alternate Representative of State United States Delegation to the Thirty- Liza Morris, Office of Multilateral Marjorie Margolies-Mezvinsky, Office of Nineth Session of the Commission on Development Banks, Department of the Conference Secretariat, Bureau of the Status of Women, United Nations the Treasury Global Affairs, Department of State Economic and Social Council Jean Nelson, General Counsel, Public Members (ECOSOC), New York, March 15–April Environmental Protection Agency 4, 1995 Karen Nussbaum, Director, Women’s The Honorable Maria Antonietta Berriozabal, United States Principal Representative Bureau, Department of Labor Bisa Williams-Manigualt, United States Representative on the Commission of The Honorable Madeleine K. Albright, Mission to the United Nations, New Women Organization of American Ambassador, United States Permanent York States, San Antonio, Texas Representative to the United Nations Mary Curtin, Office of the Conference Jacqueline Veronica Biggins, former Senior Adviser to the President and Alternate Representative Secretariat, Bureau of Global Affairs, Department of State Director of Presidential Personnel, Marjorie Margolies-Mezvinsky, Office of Kathleen Hendrix, Office of the Atlanta, Georgia the Conference Secretariat, Bureau of Conference Secretariat, Bureau of Lynn Cutler, Senior Vice President of Global Affairs, Department of State Global Affairs, Department of State Public Affairs, The Kamber Group, Public Members Sharon Kotok, Office of the Conference Former Vice Chair, Democratic Secretariat, Bureau of Global Affairs, National Committee, Washington, The Honorable Maria Antonietta Department of State D.C. Berriozabal, United States Principal Jeffrey Meer, Office of the Conference Athenia L. Joyner, Founding Partner, Representative on the Commission of Secretariat, Bureau of Global Affairs, Stewart, Joyner, Jordan-Holmes and Women, Organization of American Department of State Holmes P.A. and Chair, Hillsborough States, San Antonio, Texas County Aviation Authority, Tampa, Jacqueline Veronica Biggins, former Private Sector Advisers: Florida Senior Adviser to the President and Virginia Trotter-Betts, President, Dorothy V. Lamm, Columnist, Director of Presidential Personnel, American Nurses Assn., Nashville, Psychiatric Social Worker and Health Atlanta, Georgia Tennessee. Care Advocate, Denver, Colorado. Lynn Cutler, Senior Vice President of Anne L. Bryant, Executive Director, Linda Tarr-Whelan, President/CEO, Public Affairs, The Kamber Group, American Association of University Center for Policy Alternatives, Former Vice Chair, Democratic Women, Washington, D.C. Washington, D.C. National Committee, Washington, Connie E. Evans, President, Women’s D.C. Self-Employment Project for Low- Senior Advisers Arthenia L. Joyner, Founding Partner, Income, Women/Micro- Melinda L. Kimble, Deputy Assistant Stewart, Joyner, Jordan-Holmes and Entrepreneurs, Chicago, Illinois Secretary, Bureau of International Holmes, P.A. and Chair, Hillsborogh Adrienne German, International Organization Affairs, Department of County Aviation Authority, Tampa, Women’s Health Coalition, New York, State Florida N.Y. The Honorable Ambassador Victor Dorothy V. Lamm, Columnist, Gloria Johnson, President, Coalition of Marrero, United States Representative Psychiatric Social Worker and Health Labor Union Women, Washington, to the Economic and Social Council, Care Advocate, Denver, Colorado D.C. New York Linda Tarr-Whelan, President/CEO, Ashley Maddox, Population Reference The Honorable Sally Shelton, Assistant Center for Policy Alternatives, Bureau, Washington, D.C. Administrator Global Affairs, Agency Washington, D.C. Laila Al-Marayati, M.D., President, for International Development. Muslim Women’s League and Senior Advisers Founding Member, Women’s Advisers Melinda L. Kimble, Deputy Assistant Coalition Against Ethnic Cleansing, Judith Heuman, Assistant Secretary, Secretary, Bureau of International Glendale, California. Department of Education Organization Affairs, Department of Gay J. McDougall, Executive Director, Sarah Kovner, Special Assistant to the State International Human Rights Law Secretary, Department of Health and The Honorable Ambassador Victor Group, Washington, D.C. Human Services Marreo, United States Representative Muriel F. Siebert, Muriel Siebert & Co., Margaret Lycette, Director, Women in to the Economic and Social Council, Inc., Siebert Entrepreneurial Development, Agency for New York Philanthropic Plan, New York, N.Y. International Development Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63897

Ellen Marshall, Acting Coordinator for and Environment, Department of Administration, Department of Population, Bureau of Population, Agriculture Commerce Refugees, and Migration, Department Cecily Holiday, International Bureau, Alternate Representative of State Federal Communications Commission Liza Morris, Office of Multilateral Jack Ward Thomas, Chief, Forest Kristi Kendall, International Bureau, Development Banks, Department of Service, Department of Agriculture Federal Communications Commission Damon Ladson, International Bureau, the Treasury Advisers Jean Nelson, General Counsel, Federal Communications Commission Environmental Protection Agency Stephanie J. Caswell, Senior Warren Richards, Executive Director, Karen Nussbaum, Director, Women’s Conservation Officer, Bureau of World Radiocommunications Bureau, Department of Labor Oceans, International Environmental Conference 1995, International Bisa Williams-Manigualt, United States and Scientific Affairs, Department of Communications and Information Mission to the United Nations, New State Policy, Bureau of Economic and York Mary J. Coulombe, Director, Business Affairs, Department of State Mary Curtin, Office of the Conference International Forestry Policy and Thomas Walsh, International Bureau, Secretariat, Bureau of Global Affairs, Planning Staff, Forest Service, Federal Communications Commission Department of State Department of Agriculture Kathleen Hendrix, Office of the Thomas A. Forbord, Permanent Private Sector Advisers Conference Secretariat, Bureau of Representative, United States Mission Christine DiLapi, Systems Engineer, Global Affairs, Department of State to the United Nations Agencies for Motorola Satellite Communications Sharon Kotok, Office of the Conference Food and Agriculture, Rome Division, Chandler, Arizona Secretariat, Bureau of Global Affairs, Willard I. Johnson, Director, Office of Mario Florian, Director, Latin American, Department of State Environment and Natural Resources, Orbital Communications Corporation, Jeffrey Meer, Office of the Conference Bureau for Global Programs, Field Dulles, Virginia Secretariat, Bureau of global Affairs, Support and Research, Agency for Diane Garfield, Engineer, Stanford Department of State International Development Telecommunications, Bethesda, Julia M. Morris, International Maryland Private Sector Advisers: Organization Liaison, International Benito Gutierrez-Luaces, Jet Propulsion Virginia Trotter-Betts, President, Forestry Policy and Planning Staff, Laboratories, Washington, D.C. American Nurses Assn., Nashville, Forest Service, Department of Donald Jansky, President, Jansky/ Tennessee. Agriculture Barmat Telecommunications, Anne L. Bryant, Executive Director, Francis J. Vacca, Attache for Food and Washington, D.C. American Association of University Agricultural Affairs, United States Allan Renshaw, Starsys Global Women, Washington, D.C. Mission to the United Nations Positioning, Inc., Lanham, Maryland Connie E. Evans, President, Women’s Agencies for Food and Agriculture, Glenn Richards, Fisher, Wayland, Self-Employment Project for Low- Rome Washington, D.C. Income Women/Micro-Entrepreneurs, Paul Rinaldo, Manager, Technical Chicago, Illinois Private Sector Advisers Relations, American Radio Relay Adrienne Germain, International Marvin Brown, State Forester, National League, Washington, D.C. Women’s Health Coalition, New York, Association of State Foresters, Lawrence Williams, Director of External N.Y. Washington, District of Columbia Affairs, Teledesic Corporation, Gloria Johnson, President, Coalition of Michael Brock Evans, Vice President for Washington, D.C. Labor Union Women, Washington, National Issues, National Audubon Richard Wright, Computer Sciences D.C. Society, Washington, District of Corporation, Sterling, Virginia Ashley Maddox, Population Reference Columbia United States Delegation Development Bureau, Washington, D.C. John Heissenbuttel, Vice President for Study Group 1, Telecommunication Laila Al-Marayati, M.D., President, International Forestry, American Development Sector, International Muslim Women’s League and Forests and Paper Association, Telecommunication Union, Geneva, Founding Member, Women’s Washington, District of Columbia March 6–17, 1995 Coalition Against Ethnic Cleansing, United States Delegation Permanent Glendale, California. Representative Consultative Committee III, Inter- Gay J. McDougall, Executive Director, Doreen F. McGirr, Senior Counsellor, International Human Rights Law American Telecommunications Commission (CITEL), Organization of Office of Telecommunications Group, Washington, D.C. Development, International Muriel F. Siebert, Muriel Siebert & Co., American States (OAS), Porlamar City, Communications and Information Inc., Siebert Entrepreneurial Isla De Margarita, Venezuela, March Policy, Bureau of Economic and Philanthropic Plan, New York, N.Y. 13–17, 1995 Business Affairs, Department of State Maely T. Tom, Senior vice-president, Representative Cassidy and Associates, Sacramento, Alternate Representatives California John T. Gilsenan, International Communications and Information Mindel De La Gorre, Deputy Chief, United States Delegation to the Policy, Bureau of Economic and Telecommunications Division, Committee on Forestry (COFO), 12th Business Affairs, Department of State International Bureau, Federal Session and Ministerial Session, Food Communications Commission and Agriculture Organization, Rome, Advisers John Mack, Director, Africa and Middle March 13–17, 1995 Audrey Allison, Private Radio Bureau, East, Office of Satellites and Cable, Federal Communications Commission International Communications and Representative William Hatch, Program Manager, Office Information Policy, Bureau of The Honorable Adela Backiel, Deputy of Spectrum Management, National Economic and Business Affairs, Under Secretary for Natural Resources Telecommunications and Information Department of State 63898 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Advisers Private Sector Adviser Inspection and Documentation Roxanne McElvane, Attorney Adviser, Allen G. Croff, Oak Ridge National Division, Office of Marine Safety, Telecommunications Division, Laboratory, Oak Ridge, Tennessee Security and Environmental International Bureau, Federal Protection, United States Coast Guard, United States Delegation to the Steering Department of Transportation Communications Commission Committee, 90th Session, Nuclear Thomas Wasilewski, Energy Agency (NEA), Organization for Private Sector Advisers Telecommunications Policy Economic Cooperation and Specialist, National Gregory Shark, Regulatory Affairs Development (OECD), Paris, March 6–7, Telecommunications and Information Office, American Bureau of Shipping, 1995 Administration, Department of New York, New York John S. Spencer, Vice President, Commerce Representative Technology and Business Private Sector Advisers Terry R. Lash, Director, Office of Development, American Bureau of Nuclear Energy, Department of Energy Michael Behrens, AT&T Basking Ridge, Shipping, Houston, Texas New Jersey Alternate Representative Douglas B. Stevenson, Director, Center Rhonda Crane, Federal Government for Seafarers’ Rights, New York, New Janet Gorn, International Relations York Affairs Director, American Telephone Officer, International Programs, and Telegraph, Washington, D.C. Nuclear Regulatory Commission United States Delegation, Study Group Gregg Daffner, Vice President, Market 11 (Signalling and Switching), Development and Regulatory Affairs, Advisers Telecommunication Standardization PanAmSat, Greenwich, Connecticut Eric Beckjord, Director, Office of Sector, International Richard Everett, Director, Developing Research, Nuclear Regulatory Telecommunication Union (ITU), Country Programs, IRIDIUM, Inc., Commission Geneva, April 25–May 12, 1995 Washington, D.C. Collette Brown, Division of Lynne Gallagher, President, Telecom/ International Programs, Office of Representative Telematique International, Nuclear Energy, Department of Energy Gary M. Fereno, Director for CITEL and Washington, D.C. Carol Lee, Science Adviser for Energy, ITU–T Standards Policy, International Jane Hurd, President, Severance United States Mission to the Communications and Information International, Inc., Washington, D.C. Organization for Economic Policy, Bureau of Economic and Tedros Lemma, Worldspace, Cooperation and Development, Paris Business Affairs, Department of State Washington, D.C. Kristen Suokko, Director, Division of Jean Prewitt, Podesta Associates, International Programs, Office of Advisers Washington, D.C. Nuclear Energy, Department of Energy Gregory Bain, Electronics Engineer, Martin Sullivan, Director, Standards Private Sector Adviser National Communications System, Management, Bellcore, Red Bank, Washington, D.C. New Jersey Allen G. Croff, Oak Ridge National Donald Choi, Electronics Engineer, Craig Robert Vielguth, Bellcore, Laboratory, Oak Ridge, Tennessee Defense Information Systems Agency, Livingston, New Jersey United States Delegation to the Sub- Reston, Virginia Ernest Wallace, COMSAT Corporation, Leslie A. Collica, Computer Scientist, Bethesda, Maryland Committee on Flag State Implementation (FSI), Third Session, National Institute of Standards and United States Delegation to the Steering International Maritime Organization, Technology, Department of Commerce Committee, Nuclear Energy Agency London, February 20–24, 1995 Gaithersburg, Maryland (NEA), Organization for Economic Wendell Harris, Assistant Chief, Cooperation and Development (OECD), Representative Common Carrier Bureau, Federal Paris, March 6–7, 1995 Norman W. Lemley, Director, Oil Communications Commission Pollution Act (OPA) Staff, Office of Private Sector Advisers Representative Marine Safety, Security and Terry R. Lash, Director, Office of Environmental Protection, United Edward Chien, President, Personal Nuclear Energy, Department of Energy States Coast Guard, Department of Telecommunication Technologies, Transportation Inc., Milpitas, California Alternate Representative Larry Greenstein, Senior Scientist, Janet Gorn, International Relations Alternate Representative Alcatel Data Network, Reston, Officer, International Programs, George M. Williams, Captain, Chief, Virginia Nuclear Regulatory Commission Merchant Vessel Inspection and Elmer R. Hapeman, Switching Engineer, Documentation Division, Office of BELLCORE, Red Bank, New Jersey Advisers Marine Safety, Security and Thomas Henderson, Principal Engineer, Eric Beckjord, Director, Office of Environmental Protection, United COMSAT Corporation, Clarksburg, Research, Nuclear Regulatory States Coast Guard, Department of Maryland Commission Transportation Harry Hetz, Manager, Standards Collette Brown, Division of Management, Bell Atlantic, Arlington, International Programs, Office of Advisers Virginia Nuclear Energy, Department of Energy Larry G. Gibson, Captain, Chief Marine Jay R. Hilton, Manager, Technical Carol Lee, Science Adviser for Energy, Investigation Division, Office of Standards, GTE Telephone United States Mission to the Marine Safety, Security and Operations, Irving, Texas Organization for Economic Environmental Protection, United Drois Lebovits, Staff Manager, AT&T, Cooperation and Development, Paris States Coast Guard, Department of Bedminster, New Jersey Kristen Suokko, Director, Division of Transportation George Swallow, Principal Engineer, International Programs, Office of John M. Holmes, Chief, Compliance and Light Stream Inc., Billerica, Nuclear Energy, Department of Energy Enforcement Branch, Merchant Vessel Massachusetts Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63899

Anthony Toubassi, Advisory Engineer, for International Development (high Oceans and International MCI Corporation, Richardson, Texas level session) Environmental and Scientific Affairs, Lawrence A. Young, Director, Technical Department of State (plenary segment) Representatives Standards, Ameritech Services, John P. McGuinness, Office of Economic Hoffman Estates, Illinois The Honorable Ambassador Mark G. and Social Affairs, Bureau of Hambley, Special Representative to United States Delegation to the International Organization Affairs, the UN Commission on Sustainable Department of State Standing Committee 80th Session and Development, Bureau of Oceans and the Statistical Committee, International Franklin Moore, Center for International Environmental and Environment, United States Agency Lead and Zinc Study Group (ILZSG), Scientific Affairs, Department of State London, April 19–21, 1995 for International Development (Plenary segment) (plenary segment) Representative Alternate Representatives Trigg Talley, Office of International David A. Larrabee, Lead and Zinc Eileen Claussen, Special Assistant to the Activities, Environmental Protection Industry Specialist, Office of Metals, President, Office of Global Agency (plenary segment) Materials and Chemicals, Department Environment Affairs, National Bisa Williams-Manigault, Advisor, of Commerce Security Council, Executive Office of United States Mission to the United Nations, New York Alternate Representative the President (high level session) The Honorable Ambassador Robert Private Sector Advisors Michael Glover, Economic Officer, Pringle, Director, Office of Ecology United States Embassy, London and Terrestrial Conservation, Bureau Norine Kennedy, Director of Environmental Affairs, U.S. Council Private Sector Adviser of Oceans and International Environmental and Scientific Affairs, for International Business, New York Richard Bauer, Jr., Vice President, Department of State (Plenary segment) Sharyle Patton, Citizens Network for Eastern Alloys, Maybrook, New York The Honorable Timothy E. Wirth, Under Sustainable Development, New York Secretary for Global Affairs, United States Delegation, Study Group United States Delegation to the Department of State (high level 14 (Modems and Transmission Committee on Commodity Problems session) Techniques), Telecommunication (CCP), Intergovernmental Group on Standardization Sector, International Advisers Tea, 11th Session, United Nations Food Telecommunication Union (ITU), Adela Backiel, Deputy Under-Secretary, and Agriculture Organization (FAO), Geneva, April 19–27, 1995 Natural Resources and the Rome, April 10–13, 1995 Representative Environment, United States Representative Gary M. Fereno, Director for CITEL and Department of Agriculture (high level session) Francis J. Vacca, Agricultural Attache ITU–T Standards Policy, International and Alternate Permanent Communications and Information Ann Carey, Natural Resources Conservation Service, United States Representative, United States Mission Policy, Bureau of Economic and to the United Nations Agencies for Business Affairs, Department of State Department of Agriculture (plenary segment) Food and Agriculture, Rome Adviser Mary Coloumbe, Office of International Private Sector Advisers Nicholas E. Andre, Electronics Engineer, Forestry Policy and Planning, Forest Martin Kushner, Chairman, Tea National Communications System, Service, United States Department of Association of the USA, Inc., Marietta, Washington, D.C. Agriculture (plenary segment) The Honorable Ambassador Elinor G. Georgia Private Sector Advisers Constable, Assistant Secretary of Joseph P. Simrany, President, Tea Elaine J. Baskin, Technical Editor, State, Bureau of Oceans and Association of the USA, Inc., New Communication Standards Review, International Environmental and York City, New York Palo Alto, California Scientific Affairs, Department of State Joseph Wertheim, Chairman of the Richard Brandt, President, D.B. (high level session) Foreign Affairs Committee, Tea Consultants, Annandale, New Jersey Robert Ford, Office of Environmental Association of the USA, Inc., Judith E. Harkins, Director, Technology Policy, Bureau of Oceans and Westport, Connecticut International Environmental and Assessment, Gallaudet University, United States Delegation, Study Group Washington, D.C. Scientific Affairs, Department of State (plenary segment) 9 (Fixed Service), Radiocommunication Andrea J. Saks, Association of the Deaf Sector, International Communities, London, United The Honorable Lynn Goldman, Assistant Administrator, Office of Telecommunication Union, Geneva, Kingdom May 30–June 2, 1995 Lester Staples, Vice President and Chief Pesticides and Toxic Substances, Technical Officer, Datarace Environmental Protection Agency Representative Corporation, San Antonio, Texas (high level session) David Hales, Deputy Assistant Alex C. Latker, Attorney Adviser, United States Delegation to the Third Administrator, Director, Center for the International Policy Division, Plenary Meeting of the United Nations Environment, United States Agency Common Carrier Bureau, Federal Commission on Sustainable for International Development (high Communications Commission Development of the Economic and level session) Adviser Social Council (ECOSOC), New York, David Harwood, Special Advisor, Office April 11–28, 1995 of the Under Secretary for Global Gerald F. Hurt, Program Manager, Office Affairs, Department of State (plenary of Spectrum Management, National Ex-Officio Head of Delegation session) Telecommunications and Information The Honorable J. Brian Atwood, George Herrfurth, Office of Administration, Department of Administrator, United States Agency Environmental Policy, Bureau of Commerce, Annapolis, Maryland 63900 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Private Sector Advisers Operations, United States Information Administration, Department of Ferdinand Ivanek, Communications Agency Commerce Martin C. Yerg, Jr., Chief, International Research, Palo Alto, California Private Sector Advisers Eugene Rappoport, Manager of Radio Activities Office, National Weather Robert Combs, Stanford Standards, AT&T Communications, Service, National Oceanic and Telecommunications, Reston, Virginia Bedminster, New Jersey Atmospheric Administration, Farzad Ghazvinian, Teledesic Department of Commerce United States Delegation, Study Group Corporation, Kirkland, Washington 4 (Fixed Satellite Service), Robert Hedinger, AT&T, Bedminster, Private Sector Adviser Radiocommunication Sector, New Jersey David D. Houghton, Professor, International Telecommunication Donald M. Jansky, President, Jansky/ Department of Atmospheric and Union (ITU), Geneva, May 30–June 2, Barmat Telecommunications, Oceanic Sciences, University of 1995 Washington, D.C. Wisconsin, Madison, Wisconsin Edward F. Miller, Teledesic Representative Corporation, Kirkland, Washington United States Delegation to Study Michael Mitchell, Spectrum Plans and Richard B. Stone, Jr., Motorola Satcom, Group 7 (Science Services), Policy, National Telecommunications Chandler, Arizona Radiocommunication Sector, and Information Administration, David E. Weinreich, Department International Telecommunication Department of Commerce Manager, COMSAT Laboratories, Union (ITU), Geneva, May 24–26, 1995 Clarksburg, Maryland Advisers Representative United States Delegation to the World Donna Bethea, Electrical Engineer, David Struba, Spectrum Management Meteorological Organization Congress, International Bureau, Satellite and Specialist, Spectrum Management 12th Session, Geneva, May 29–June 21, Radio Division, Federal Program, National Aeronautics and 1995 Communications Commission Space Administration Clifford Guffee, Chief, Design Division, Representative Advisers Telecommunications Directorate, D. James Baker, Under Secretary for Office of Engineering and Technology Oceans and Atmosphere, National Shayla Davidson, Johnson Space Center, Operations, United States Information Oceanic and Atmospheric National Aeronautics and Space Agency Administration, Department of Administration, Houston, Texas Dean Lloyd, National Weather Service, Private Sector Advisers Commerce Department of Commerce, Silver Robert Combs, Stanford Alternate Representative Spring, Maryland Telecommunications, Reston, Virginia Elbert W. Friday, Jr., National Weather Private Sector Advisers Farzad Ghazvinian, Teledesic Service, National Oceanic and Corporation, Kirkland, Washington Atmospheric Administration, Rodger Andrews, Computer Sciences Robert Hedinger, AT&T, Bedminster, Department of Commerce Corporation, Sterling, Virginia New Jersey Richard Greenfield, Director, Division of Robert Combs, Standford Management Donald M. Jansky, President, Jansky/ Atmospheric Sciences, National Office, Goddard Space Flight Center, Barmat Telecommunications, Science Foundation Greenbelt, Maryland Washington, D.C. Joseph Deskevich, Systems Management Edward F. Miller, Teledesic Advisers Office, Goddard Space Flight Center, Corporation, Kirkland, Washington Howard L. April, Chief, International Greenbelt, Maryland Richard B. Stone, Jr., Motorola Satcom, Affairs Branch, National Weather Benito Gutierrez-Luaces, Jet Propulsion Chandler, Arizona Service, National Oceanic and Laboratory, Washington, D.C. David E. Weinreich, Department Atmospheric Administration, Steven Kaltenmark, Computer Sciences Manager, COMSAT Laboratories, Department of Commerce Clarksburg, Maryland Corporation, Sterling, Virginia Ronald D. McPherson, Director, John Kiebler, MITRE Corporation, United States Delegation, Study Group National Meteorological Center, Greenbelt, Maryland 4 (Fixed Satellite Service), National Weather Service, National Harold Kimball, Professional Services Radiocommunication Sector, Oceanic and Atmospheric Group, Computer Sciences International Telecommunication Administration, Department of Corporation, Sterling, Virginia Union (ITU), Geneva, May 30–June 2, Commerce John Miller, Standford 1995 Verne R. Schneider, Assistant Chief Telecommunications, Seabrook, Hydrologist for Technical Support, Representative Maryland United States Geological Survey, Robert Taylor, Taylor Michael Mitchell, Spectrum Plans and Department of the Interior Telecommunication and Computers, Kay Weston, Program Analyst, National Policy, National Telecommunications Rosharon, Texas and Information Administration, Weather Service, National Oceanic Department of Commerce and Atmospheric Administration, United States Delegation to the Department of Commerce Telecommunication Standardization Advisers Evelyn K. Wheeler, Office of Technical Sector (TSS), Study Group 1, Donna Bethea, Electrical Engineer, and Specialized Agencies, Bureau of International Telecommunication International Bureau, Satellite and International Organizations, Union (ITU), Geneva, May 16–26, 1995 Radio Division, Federal Department of State Representative Communications Commission Gregory W. Withee, Deputy Assistant Clifford Guffee, Chief, Design Division, Administrator, National Satellite, Douglas V. Davis, Senior Attorney, Telecommunications Directorate, Data, and Information Service, International Bureau, Federal Office of Engineering and Technology National Oceanic and Atmospheric Communications Commission Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63901

Advisers Joseph Deskevich, Systems Management States Agency for International Office, Goddard Space Flight Center, Development Carol Edgar, Computer Scientist, Greenbelt, Maryland National Institute of Standards and David Tyler, Office of the Executive Benito Gutierrez-Luaces, Jet Propulsion Technology, Department of Director, Bureau of Consular Affairs, Laboratory, Washington, D.C. Commerce, Gaithersburg, Maryland Department of State Steven Kaltenmark, Computer Sciences Linda Vogel, Director, Office of Granger Kelly, Electrical Engineer, Corporation, Sterling, Virginia International Health, Department of Interoperability and Standards Office, John Kiebler, MITRE Corporation, Health and Human Services Defense Communication Agency, Greenbelt, Maryland Department of Defense Private Sector Advisers Harold Kimball, Professional Services Private Sector Advisers Group, Computer Sciences Gwendolyn C. Baker, President, United States Committee for UNICEF, New Anita Kaufman, Senior Staff Specialist, Corporation, Sterling, Virginia York MCI International, Rye Brook, New John Miller, Standford James D. Weill, General Counsel, York Telecommunications, Seabrook, Maryland Children’s Defense Fund, Thanos Kipreos, Director, Technical and Washington, D.C. Regulatory Affairs, Robert Taylor, Taylor Telecommunications Industry Telecommunication and Computers, United States Delegation to the Association (TIA), Arlington, Virginia Rosharon, Texas Telecommunication Standardization Frank LaPorta, Manager, AT&T United States Delegation to the Annual Sector (TSS), Study Group 1, Bedminster, New Jersey Session of the Executive Board, United International Telecommunication Ben C. Levitan, Engineer, Aeronautical Nations Children’s Fund (UNICEF), Union (ITU), Geneva, May 16–26, 1995 Radio, Incorporated (ARINC), New York, May 22–26, 1995 Representative Annapolis, Maryland Representative Robert Madden, Engineering Supervisor, Douglas V. Davis, Senior Attorney, AT&T Bell Laboratories, Holmdel, The Honorable Marian Wright-Edelman, International Bureau, Federal New Jersey United States Representative to the Communications Commission Robin Rossow, System Engineer, UNICEF Executive Board Advisers Bellcore, Red Bank, New Jersey Alternate Representatives Carol Edgar, Computer Scientist, Herman Silbiger, Communications National Institute of Standards and Consultant, APPLICOM, Tinton Falls, Ralph E. Bresler, Director, Office of Technology, Department of New Jersey International Development Commerce, Gaithersburg, Maryland Robert J. Smith, Director, International Assistance, Bureau of International Granger Kelly, Electrical Engineer, Standards, NYNEX Corporation, Organization Affairs, Department of Interoperability and Standards Office, White Plains, New York State The Honorable William H. Foege, Defense Communication Agency, Blake Wattenbarger, AT&T Bell Alternate U.S. Representative to the Department of Defense Laboratories, Holmdel, New Jersey UNICEF Executive Board, Atlanta, Michele Zelazny, Manager, International Private Sector Advisers Georgia Business Development, MCI The Honorable Ambassador Victor Anita Kaufman, Senior Staff Specialist, International, Inc., Rye Brook, New Marrero, United States Representative MCI International, Rye Brook, New York to the Economic and Social Council of York United States Delegation to Study the United Nations, New York Thanos Kipreos, Director, Technical and Group 7 (Science Services), Regulatory Affairs, Advisers Radiocommunication Sector, Telecommunications Industry International Telecommunication Kenneth Bart, Office of International Association (TIA), Arlington, Virginia Union (ITU), Geneva, May 24–26, 1995 and Refugee Health, Department of Frank LaPorta, Manager, AT&T, Health and Human Services Bedminster, New Jersey Representative Thomas Beck, Office of International Ben C. Levitan, Engineer, Aeronautical David Struba, Spectrum Management Donor Programs, Bureau of Program Radio, Incorporated (ARINC), Specialist, Spectrum Management and Policy Coordination, United Annapolis, Maryland Program, National Aeronautics and States Agency for International Robert Madden, Engineering Supervisor, Space Administration Development AT&T Bell Laboratories, Holmdel, Robert Clay, Office of Health, Bureau of New Jersey Advisers Global Programs, Field Support, and Robin Rossow, System Engineer, Shayla Davidson, Johnson Space Center, Research, United States Agency of Bellcore, Red Bank, New Jersey National Aeronautics and Space International Development Herman Silbiger, Communications Administration, Houston, Texas Carol S. Fuller, Office of International Consultant, APPLICOM, Tinton Falls, Dean Lloyd, National Weather Service, Development Assistance, Bureau of New Jersey Department of Commerce, Silver International Organization Affairs, Robert J. Smith, Director, International Spring, Maryland Department of State Standards, NYNEX Corporation, Virginia Graham, United States Mission White Plains, New York Private Sector Advisers to the United Nations, New York Blake Wattenbarger, AT&T Bell Rodger Andrews, Computer Sciences John Hope, United States Mission to the Laboratories, Holmdel, New Jersey Corporation, Sterling, Virginia United Nations, New York Michele Zelazny, Manager, International Robert Combs, Standford Management Lorraine Soisson, Office of International Business Development, MCI Office, Goddard Space Flight Center, Donor Programs, Bureau of Program International, Inc., Rye Brook, New Greenbelt, Maryland and Policy Coordination, United York 63902 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

United States Delegation to the Joint Joseph Spetrini, Deputy Assistant Robert Somerville, President, American Working Group on Insurance Services Secretary for Import Administration, Bureau of Shipping, New York, New with the Committee on Capital International Trade Administration, York Movements and Invisible Transactions Department of Commerce United States Delegation to the (CMIT) and 55th Plenary Session, Private Sector Advisers Nineteenth Antarctic Treaty Insurance Committee, Organization for Consultative Meeting, Seoul, May 8–19, Economic Cooperation and Frank Fenton, Senior Vice President, 1995 Development (OECD), Paris, May 15–19, Public Policy, American Iron and 1995 Steel Institute, Washington, D.C. Representative John J. Sheehan, Legislative Director, Representative R. Tucker Scully, Director, Office of United Steelworkers of America, Oceans Affairs, Bureau of Oceans and M. Bruce McAdam, International Trade Washington, DC Specialist, Office of Finance, International Environmental and International Trade Administration, United States Delegation to the Scientific Affairs, Department of State Maritime Safety Committee (MSC65), Department of Commerce Advisers 65th Session, International Maritime Alternate Representatives Organization, London, May 9–17, 1995 John Behrendt, United States Geological Kathleen M. Reddy, United States Representative Survey, Department of Interior, Mission to the Organization for Denver, Colorado Economic Cooperation and James C. Card, Rear Admiral, Chief, Robert Hofman, Marine Mammal Development, Paris Office of Marine Safety, Security and Commission, Washington, D.C. Jude Kearney, Deputy Assistant Environmental Protection, United Robert Kushen, Office of the Legal Secretary for Service Industries and States Coast Guard, Department of Adviser, Department of State Finance, International Trade Transportation Administration, Department of Thomas Laughlin, National Oceanic and Alternate Representative Commerce Atmospheric Administration, Joseph J. Angelo, Associate Program Department of Commerce Private Sector Advisers Director, Office of Marine Safety, Carol Roberts, Division of Polar Brian K. Atchinson, Superintendent of Security and Environmental Programs, National Science Insurance, Department of Professional Protection, United States Coast Guard, Foundation and Financial Regulation, Augusta, Department of Transportation Robert S. Senseney, Division of Polar Maine Advisers Affairs, Bureau of Oceans and Kevin T. Cronin, Washington Counsel, International Environmental and National Association of Insurance Linda Sue Johnson, Attorney Advisor, Scientific Affairs, Department of State Commissioners, Washington, D.C. Office of International Environmental James M. Crowley, Vice President for Law, National Oceanic and Private Sector Advisers International Government and Atmospheric Administration, Ron Naveen, Oceanites Foundation, Industry Affairs, CIGNA Worldwide Department of Commerce Cooksville, Maryland Incorporated, Philadelphia, Norman. W. Lemley, Director, OPA 90 Pennsylvania Beth Marks, The Antarctica Project, Staff, Office of Marine Safety, Security Washington, D.C. Claude Gallello, Managing Director, and Environmental Protection, United Willis Corroon International/ States Coast Guard, Department of United States Delegation to the Americas, New York, New York Transportation Maritime Transport Committee (MTC), United States Delegation to the Steel Gordon D. Marsh, Captain, Chief, Organization for Economic Cooperation Committee, 46th Session, Organization Marine Technical and Hazardous and Development (OECD), Paris, May for Economic Cooperation and Materials Division, United States 3–4, 1995 Development (OECD), Paris, May 10–11, Coast Guard, Department of Representative 1995 Transportation Charles A. Mast, Director, Office of Representative Joseph Ashley Roach, Office of the Assistant Legal Adviser for Oceans, Maritime and Land Transport, Bureau Gordana Earp, Deputy Assistant United International Environmental and of Economic and Business Affairs, States Trade Representative for Scientific Affairs, Office of the Legal Department of State Industry, Office of the United States Adviser, Department of State Trade Representative, Executive Alternate Representatives Office of the President Private Sector Advisers Robert D. Bourgoin, General Counsel, Alternate Representative Edward V. Kelly, Vice President, Federal Maritime Commission American Maritime Officers, Ralph Edwards, International Robert C. Reiley, Director, Office of Washington, D.C. Economist, Office of International Materials, Machinery and Chemicals, Activities, Maritime Administration, Department of Commerce James J. McNamara, President, National Cargo Bureau, Inc., New York, New Department of Transportation Advisers York Private Sector Advisers Elizabeth Patience, Import Compliance James M. Morgan, Captain, Manager, Specialist, Import Administration, Vessel Operations, Arco Marine, Inc., Philip J. Loree, Chairman, Federation of Department of Commerce Long Beach, California American Controlled Shipping, New Jane Richards, International Economist, Robert J. Oslund; Director of External York, New York Office of International Labor, Affairs, COMSAT Maritime Services, Donald L. O’Hare, Vice President, Sea- Department of Labor Clarksburg, Maryland Land Corporation, Iselin, New Jersey Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63903

United States Delegation, Development Daniel Edelstein, Copper Specialist, Common Carrier Bureau, Federal Study Group 2, Telecommunication Bureau of Mines, Department of the Communications Commission Development Sector, International Interior John Dieffenderfer, Office of Telecommunication Union, Geneva, Jonathan Kessler, United States International Conferences, Bureau of May 1–12, 1995 Embassy, Lisbon International Organization Affairs, Department of State Representative Private Sector Advisers Robin Frank, Attorney Adviser, Office of Doreen F. McGirr, Senior Counsellor, Ivan L. Jeffery, President, Crescent Brass the Assistant Legal Adviser for Office of Telecommunications Manufacturing Corporation, Reading, Economic, Business and Development, International Pennsylvania Communications, Office of the Legal Communications and Information Arthur R. Miele, President, Phelps Adviser, Department of State Policy, Bureau of Economic and Dodge Sales, Phelps Dodge John Hitchcock, First Secretary, United Business Affairs, Department of State Corporation, Phoenix, Arizona States Mission, Geneva Allan B. Silver, Chairman, Recyclers of Alternate Representative Ann Jillson, Multilateral Affairs Officer, Copper Alloy Products, Nashua, New Office of Specialized Technical John Mack, Director, Africa and Middle Hampshire Agencies, Bureau of International East, Office of Satellites and Cable, United States Delegation to the 89th Organization Affairs, Department of International Communications and Session of the Council Working Party State Information Policy, Bureau of Six on Shipbuilding, and the Subgroup Richard Parlow, Associate Economic and Business Affairs, on Supply and Demand, Organization Administrator, Office of Specturm Department of State for Economic Cooperation and Management, National Advisers Development (OECD), Paris, June 26– Telecommunications and Information 28, 1995 Administration, Department of Bruce Barnett, Telecommunications Commerce Policy Specialist, National Representative Richard E. Shrum, Deputy Coordinator Telecommunications and Information Donald Phillips, Assistant United States for Multilateral Affairs, International Administration, Department of Trade Representative for Industry, Communications and Information Commerce Office of the United States Trade Policy, Bureau of Economic and Roxanne McElvane, Attorney Adviser, Representative, Executive Office of Business Affairs, Department of State Telecommunications Division, the President Leon Weintraub, Telecommunications International Bureau, Federal Attache´, United States Mission, Communications Commission Alternate Representative Geneva Private Sector Advisers Charles A. Mast, Director, Office of United States Delegation to the Maritime and Land Transport, Bureau Rhonda Crane, Director, International Chemicals Group and Management of Economic and Business Affairs, Committee, 23rd Joint Meeting, Public Affairs, American Telephone Department of State and Telegraph, Washington, D.C. Environment Policy Committee (EPOC), Raymond Crowell, Director, Industry Adviser Organization for Economic Cooperation and Development (OECD), Paris, June and Government Planning, COMSAT Ralph Edwards, International 21–23, 1995 Corporation, Bethesda, Maryland Economist, Office of International Gregg Daffner, Vice President, Market Activities, Maritime Administration, Representative Development and Regulatory Affairs, Department of Transportation Lynn R. Goldman, Assistant PanAmSat, Greenwich, Connecticut Administrator, Office of Prevention, Jane Hurd, President, Severance Private Sector Adviser Pesticides and Toxic Substances, International, Inc., Washington, D.C. Thomas P. Jones, Jr., Chairman, Environmental Protection Agency Marlee R. Norton, National Telephone Shipbuilders Council of America, Cooperative Association, Washington, Alexandria, Virginia Alternate Representative D.C. United States Delegation to the 1995 Day Mount, Director, Office of United States Delegation to the Fifth Session of the Council, International Environmental Policy, Bureau of Regular Meeting of the International Telecommunication Union (ITU), Oceans and International Copper Study Group (ICSG), Lisbon, Geneva, June 21–30, 1995 Environmental and Scientific Affairs, June 27–30, 1995 Department of State Representative Advisers Representative Earl S. Barbely (Councillor), Director, Robert C. Reiley, Director, Office of Telecommunications and Information Diane D. Beal, Special Assistant for Metals, Materials, and Chemicals, Standards, International International Activities, Office of Department of Commerce Communications and Information Pollution Prevention and Toxics, Policy, Bureau of Economic and Environmental Protection Agency Alternate Representative Business Affairs, Department of State Susan Biniaz, Assistant Legal Adviser Darnall Steuart, Office of International for Oceans, Environment and Advisers Commodities, Bureau of Economic Scientific Affairs, Office of the Legal and Business Affairs, Department of Carol C. Darr, Associate Administrator, Adviser, Department of State State Office of International Affairs, Joseph S. Carra, Deputy Director, Office National Telecommunications and of Pollution Prevention and Toxics, Advisers Information Administration, Environmental Protection Agency V. Anthony Cammarota, Jr., Senior Department of Commerce Irving Fuller, Counselor for Technical Adviser, Bureau of Mines, Douglas V. Davis, Attorney Adviser, International Activities, Office of Department of the Interior International Policy Division, Prevention, Pesticides and Toxic 63904 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Substances, Environmental Protection Management, National Incorporated, East Millstone, New Agency Telecommunications and Information Jersey David Larrabee, Senior Industry Administration, Department of Robert Muth, Chairman, Lead Industries Analyst, Metals Division, Office of Commerce Association, New York, New York Materials, Machinery and Chemicals, Richard E. Shrum, Deputy Coordinator Ellen Silbergeld, Senior Toxicologist, Department of Commerce for Multilateral Affairs, International Environmental Defense Fund, Anne E. Lindsay, Director, Policy and Communications and Information Washington, District of Columbia Special Projects Staff, Office of Policy, Bureau of Economic and United States Delegation to the Pesticides Programs, Environmental Business Affairs, Department of State Commission on Plant Genetic Protection Agency Leon Weintraub, Telecommunications Resources, Sixth Session, Food and Breck Milroy, Office of International Attache, United States Mission, Agriculture Organization (FAO), Rome, Activities, Environmental Protection Geneva June 19–30, 1995 Agency United States Delegation to the David M. Ogden, Office of International Representative Chemicals Group and Management Activities, Environmental Protection Henry Shands, Associate Deputy Committee, 23rd Joint Meeting, Agency Administrator for Genetic Resources, Environment Policy Committee (EPOC), Agricultural Research Service, Private Sector Advisers Organization for Economic Cooperation Department of Agriculture Kenneth Murray, Environment Affairs and Development (OECD), Paris, June Manager, Exxon Biomedical Sciences, 21–23, 1995 Alternate Representatives Incorporated, East Millstone, New Representative E. Wayne Denney, International Jersey Relations Adviser, Office of Lynn R. Goldman, Assistant Robert Muth, Chairman, Lead Industries International Cooperation and Administrator, Office of Prevention, Association, New York, New York Development, Foreign Agricultural Pesticides and Toxic Substances, Ellen Silbergeld, Senior Toxicologist, Service, Department of Agriculture Environmental Protection Agency Environmental Defense Fund, Vanessa Laird, Assistant Legal Adviser, Washington, District of Columbia Alternate Representative Oceans, International Environmental and Scientific Affairs, Office of the United States Delegation to the 1995 Day Mount, Director, Office of Legal Adviser, Department of State Session of the Council International Environmental Policy, Bureau of Telecommunication Union (ITU), Oceans and International Advisers Geneva, June 21–30, 1995 Environmental and Scientific Affairs, Robert Bertram, Agricultural Research Department of State and Biodiversity Officer, Office of Representative Advisers Agriculture and Food Security, Earl S. Barbely (Councillor), Director, Agency for International Development Telecommunications and Information Diane D. Beal, Special Assistant for Thomas Forbord, Permanent Standards, International International Activities, Office of Representative, United States Mission Communications and Information Pollution Prevention and Toxics, to the United Nations Agencies for Policy, Bureau of Economic and Environmental Protection Agency Food and Agriculture, Rome Business Affairs, Department of State Susan Biniaz, Assistant Legal Adviser Jeffrey P. Kushan, Legislative and for Oceans, Environment and International Intellectual Property Advisers Scientific Affairs, Office of the Legal Specialist, United States Patent and Carol C. Darr, Associate Administrator, Adviser, Department of State Trademark Office, Department of Office of International Affairs, Joseph S. Carra, Deputy Director, Office Commerce National Telecommunications and of Pollution Prevention and Toxics, John Matuszak, Biodiversity Officer, Information Administration, Environmental Protection Agency Office of Ecology and Terrestrial Department of Commerce Irving Fuller, Counselor for Conservation, Bureau of Oceans and Douglas V. Davis, Attorney Adviser, International Activities, Office of International Environmental and International Policy Division, Prevention, Pesticides and Toxic Scientific Affairs, Department of State Common Carrier Bureau, Federal Substances, Environmental Protection Francis J. Vacca, Agricultural Attache, Communications Commission Agency United States Mission to the United John Dieffenderfer, Office of David Larrabee, Senior Industry Nations Agencies for Food and International Conferences, Bureau of Analyst, Metals Division, Office of Agriculture, Rome International Organization Affairs, Materials, Machinery and Chemicals, Private Sector Adviser Department of State Department of Commerce Robin Frank, Attorney Adviser, Office of Anne E. Lindsay, Director, Policy and Michael J. Roth, Patent Counsel, Pioneer the Assistant Legal Adviser for Special Projects Staff, Office of Hi-Bred International, Incorporated, Economic, Business and Pesticide Programs, Environmental Des Moines, Iowa Communications, Office of the Legal Protection Agency United States Delegation to the Working Adviser, Department of State Breck Milroy, Office of International Party on Migration, 18th Session, John Hitchcock, First Secretary, United Activities, Environmental Protection Committee on Employment, Labor, and States Mission, Geneva Agency Social Affairs (ELSA), Organization for Ann Jillson, Multilateral Affairs Officer, David M. Ogden, Office of International Economic Cooperation and Office of Specialized Technical Activities, Environmental Protection Development (OECD), Paris, June 14– Agencies, Bureau of International Agency 15, 1995 Organization Affairs, Department of State Private Sector Advisers Representative Richard Parlow, Associate Kenneth Murray, Environment Affairs Roger Kramer, Director, Division of Administrator, Office of Spectrum Manager, Exxon Biomedical Sciences, Immigration and Research, Bureau of Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63905

International Labor Affairs, United States Delegation to Study United States Delegation to the Department of Labor Group 3 (Tariff and Accounting Standing Committee on Developing Services Sectors: Fostering Competitive Private Sector Adviser Principles) and Working Parties, Telecommunication Standardization Services Sectors in Developing Demetrios Papademetriou, Director, Sector, International Countries: Shipping, Third Session, Immigration Policy Programs, Telecommunication Union, Geneva, Trade and Development Board, United Carnegie Endowment for International June 12–23, 1995 Nations Conference for Trade and Peace, Washington, District of Development (UNCTAD), Geneva, June Columbia Representative 6–9, 1995 United States Delegation, Study Group Earl S. Barbely, Director, Representative 8 (Mobile, Radiodetermination, Telecommunications and Information Amateur and Related Satellite Standards, International Marie Murray, Deputy Director, Office of Maritime and Land Transport, Services), Radiocommunication Sector, Communications and Information Bureau of Economic and Business International Telecommunication Policy, Bureau of Economic and Affairs, Department of State Union (ITU), Geneva, June 12–16, 1995 Business Affairs, Department of State Adviser Representative Private Sector Advisers John Gilsenan, Director, Radio Spectrum Appropriate Mission Officer, United Policy, International Communications Donald P. Casey, Director, Regulatory, States Mission to the European Office and Information Policy, Bureau of AT&T Easy Link, Parsippany, New of the UN and Other International Economic and Business Affairs, Jersey Organizations, Geneva Department of State Robert Madden, Manager, AT&T, Private Sector Advisers Morristown, New Jersey Advisers Philip Onstad, Consultant, International Philip J. Loree, Chairman, Federation of Richard Engleman, Office of Communications Association, Edison, American Controlled Shipping, New Engineering and Technology, Federal New Jersey York, New York Communications Commission Marcel Scheidegger, MCI International, Donald L. O’Hare, Vice President, Sea- Ricardo Layton, Chief, Global Land Corporation, Iselin, New Jersey Positioning System Frequency Rye Brook, New York Management, Space and Missile Richard W. Stone, Cable and Wireless United States Delegation to the Command, Department of Defense, Communications, Vienna, Virginia Standing Committee on Developing Los Angeles, California Services Sectors: Fostering Competitive Brian Ramsay, Spectrum Plans and United States Delegation to the Services Sectors in Developing Policies, Office of Spectrum Diplomatic Conference for the Adoption Countries: Shipping, Third Session, Management, National of the Draft Convention on the Trade and Development Board, United Telecommunications and Information International Return of Stolen or Nations Conference for Trade and Administration, Department of Illegally Exported Cultural Objects of Development (UNCTAD), Geneva, June Commerce the International Institute for the 6–9, 1995 Unification of Private Law Richard Swanson, International Bureau, Representative Federal Communications Commission (UNIDROIT), Rome, June 7–24, 1995 Marie Murray, Deputy Director, Office Representative Private Sector Advisers of Maritime and Land Transport, Christine DiLapi, Systems Engineer, Harold S. Burman, Office of the Bureau of Economic and Business Motorola Satellite Communications Assistant Legal Adviser for Private Affairs, Department of State Division, Chandler, Arizona International Law, Office of the Legal Adviser Kenneth Engle, Satellite Adviser, Department of State Communications Division, Motorola, Appropriate Mission Officer, United Inc., Chandler, Arizona Alternate Representatives States Mission to the European Office Farzad Ghazvinian, Teledesic of the UN and Other International Elaine Johnston, Deputy General Corporation, Kirkland, Washington Organizations, Geneva Counsel, The Smithsonian Institution Donald Jansky, President, Jansky/ Barmat Telecommunications, Maria Kouroupas, Executive Director, Private Sector Advisers Washington, D.C. Cultural Property Advisory Philip J. Loree, Chairman, Federation of Edward Miller, Teledesic Corporation, Committee, United States Information American Controlled Shipping, New Kirkland, Washington Agency York, New York Jayaram Ramasastry, QUALCOMM Inc., Ely Maurer, Assistant Legal Adviser for Donald L. O’Hare, Vice President, Sea- Washington, D.C. Educational, Cultural and Public Land Corporation, Iselin, New Jersey Paul L. Rinaldo, Manager, Technical Affairs, Office of the Legal Adviser, Relations, American Radio Relay Department of State United States Delegation, Study Group League, Washington, D.C. 11 (Broadcasting Services—Television), Eric Schimmel, Telecommunications Frank McManamon, Chief, Radiocommunication Sector, Industry Association, Arlington, Archaeological Assistance Division, International Telecommunication Virginia National Park Service, Department of Union (ITU), Geneva, June 1–7, 1995 the Interior Thomas M. Sullivan, Sullivan Representative Telecommunications, Edgewater, Private Sector Adviser Maryland John Reiser, Engineer, International Leslie A. Taylor, Leslie Taylor Helen Wechsler, American Association Branch, Mass Media Bureau, Federal Associates, Inc., Bethesda, Maryland of Museums, Washington, D.C. Communications Commission 63906 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Advisers The Honorable Geraldine Ferraro, Juli Trtanj, Committee on Commerce, Larry W. Olson, Chief, International United States Representative to the Science, and Transportation, United Branch, Mass Media Bureau, Federal United Nations Commission on States Senate Communications Commission Human Rights, New York William B. Woolf, Legislative Assistant, Steve Selwyn, Engineer, International Sharon B. Kotok, Office of the Office of Senator Frank H. Branch, Mass Media Bureau, Federal Conference Secretariat, Bureau of Murkowski, United States Senate Communications Commission Global Affairs, Depart of State Advisers Margaret Pollock, Office of Economic Private Sector Advisers and Social Affairs, Bureau of William E. Dilday, Office of Fisheries John Corey, SBC, Inc., Chicago, Illinois International Organization Affairs, Affairs, Bureau of Oceans and Robert S. Hopkins, Jr., ATSC, Department of State International Environmental and Scientific Affairs, Department of State Washington, D.C. David P. Stewart, Attorney-Advisor, Robert A. Kushen, Attorney-Advisor, Edward Reinhart, Consultant, McLean, Office of Human Rights and Refugee Office of the Legal Advisor, Virginia Affairs, Office of the Legal Advisor, Department of State Troy Tepp, Consultant, Chicago, Illinois Department of State Craig Todd, Dolby Laboratories, Inc., Dean Swanson, Office of International San Francisco, California Bisa Williams-Manigault, United States Affairs, National Maritime Fisheries Mission to the United Nations, New Service, Department of Commerce United States Delegation, Study Group York 10 (Broadcasting Services—Sound), Private Sector Advisers Private Sector Advisor Radiocommunication Sector, David G. Burney, United States Tuna International Telecommunication Felice Gaer, Director, Jacob Baustein Foundation, San Diego, California Union (ITU), Geneva, June 1–6, 1995 Institute for Human Rights, American Lee G. Anderson, Chair, Mid-Atlantic Representative Jewish Committee, New York Regional Fishery Management United States Delegation to the Sixth Council, Dover, Delaware Larry W. Olson, Chief, International Sarah Chasis, Natural Resources Defense Branch, Mass Media Bureau, Federal Session of the United Nations Conference on Straddling Fish Stocks Council, New York, New York Communications Commission C. Deming Cowles, Bering Sea and Highly Migratory Fish Stocks, New Fishermen’s Association, Pacific Advisers York, July 18–August 8, 1995 States Marine, Fisheries Commission, John Reiser, Engineer, International Representative and Alaska Longline Fishermen’s Branch, Mass Media Bureau, Federal Association, Washington, D.C. Larry L. Snead, Office of Marine Communications Commission Rose B. Simmonds, Executive Director, Steve Selwyn, Engineer, International Conservation, Bureau of Oceans and Western Region, Western Pacific Branch, Mass Media Bureau, Federal International Environment and Regional Fishery Management Communications Commission Scientific Affairs, Department of State Council, Honolulu, Hawaii Private Sector Advisers Alternate Representatives Michael H. Testa, Special Counsel, National Audubon Society, 32 John Corey, SBC, Inc., Chicago, Illinois Margaret Hayes, Office of the General Edward Reinhart, Consultant, McLean, Wildwood Drive, Great Neck, New Counsel, National Oceanic and York Virginia Atmospheric Administration, Troy Tepp, Consultant, Chicago, Illinois Department of Commerce United States Delegation to the Craig Todd, Dolby Laboratories, Inc., William E. Martin, Deputy Assistant Subcommittee on Fire Protection (FP), San Francisco, California Secretary for International Affairs, 40th Session, International Maritime United States Delegation to the National Oceanic and Atmospheric Organization, London, July 17–21, 1995 Informal Consultations of the Administration, Department of Representative Commission on the Status of Women, Commerce United Nations Economic and Social Joseph N. Westwood-Booth, Ship Design Congressional Staff Advisers Council (ECOSOC), New York, July 31– Branch, Marine Technical and August 4, 1995 Bonnie Bruce, Subcommittee on Hazardous Materials Division, Office Fisheries, Committee on Resources, of Marine Safety, Security and Representative House of Representatives Environmental Protection, United The Honorable Victor Marrero, Earl W. Comstock, Legislative Director, States Coast Guard, Department of Ambassador, United States Office of Senator Ted Stevens, United Transportation Representative to the United Nations States Senate Alternate Representative Economic and Social Council Penny Dalton, Senior Staff Member, Thaddeus G. Sliwinski, Lieutenant Alternate Representative Committee on Commerce, Science, Commander, Chief, National Fire and Transportation, United States Melinda L. Kimble, Deputy Assistant Protection Section, Marine Technical Senate Secretary, Bureau of International and Hazardous Materials Division, Organization Affairs, Department of Charlotte De Fontaubert, Committee on Office of Marine Safety, Security and State Foreign Relations, United States Environmental Protection, United Senate States Coast Guard, Department of Advisors Trevor McCabe, Legislative Assistant, Transportation Evan Bloom, Attorney-Advisor, Office of Committee on Commerce, Science, the Legal Advisor, Department of and Transportation, United States Advisers State Senate Anthony DiSanto, Lieutenant, National Mary T. Curtin, Office of the Conference Rebecca Metzner, Committee on Fire Protection Section, Marine Secretariat, Bureau of Global Affairs, Commerce, Science, and Technical and Hazardous Materials Department of State Transportation, United States Senate Division, Office of Marine Safety, Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63907

Security and Environmental Private Sector Advisers John Mattingly, Vice President and Protection, United States Coast Guard, Robert Cubbage, Network Product General Manager, Comsat World Department of Transportation Planner, ALCATEL Network Systems, Systems, Comsat Corporation, Albert G. Kirchner, Safety and Oversight Richardson, Texas Bethesda, Maryland Section, Marine Technical and Glen H. Estes, Director, Pacific Bell, San Maury J. Mechanick, Vice President- Hazardous Materials Division, Office Ramon, California International and Regulatory Affairs, of Marine Safety, Security and Vito Jokubaitis, Technical Industry Comsat World Systems, Bethesda, Environmental Protection, United Standards, AT&T, Bedminster, New Maryland States Coast Guard, Department of Jersey Transportation United States Delegation to the Twenty- United States Delegation to the Fourth Annual Session of the South Private Sector Advisers Twentieth Assembly of Parties of the Pacific Applied Geoscience Robert G. Bill, Factory Mutual Research International Telecommunications Commission (SOPAC), Suva, September Corporation, Norwood, Massachusetts Satellite Organization (Intelsat), 29–October 6, 1995 William M. Carey, Underwriter Copenhagen, Denmark, August 29– Laboratories, Inc., Northbrook, Illinois September 1, 1995 Representative Rupert Chandler, Hopeman Brothers, Representative Inc., Waynesboro, Virginia William A. Erb, Director, Division of Phillip J. DiNenno, Vice President, Ambassador Vonya B. McCann, United Marine Science and Technology Hughes Associates, Inc. States Coordinator, Alternate Affairs, Office of Ocean Affairs, Joseph A. Senecal, Manager, Fenwal Representative, International Bureau of Oceans and International Safety Systems, Marlborough, Communications Information Policy, Environmental and Scientific Affairs, Massachusetts Bureau of Economic and Business Department of State Affairs, Department of State United States Delegation to the Fourth Alternate Representative Meeting of Study Group 13 (General Alternate Representatives Richard J. Podorny, Senior Adviser, Network Aspects), Telecommunication Michael T.N. Fitch, Deputy United Office of Sustainable Development, Standardization Sector (TSS), States Coordinator, International National Oceanic and Atmospheric International Telecommunication Communications Information Policy, Administration, Department of Union (ITU), Geneva, July 10–21, 1995 Bureau of Economic and Business Commerce Representative Affairs, Department of State Steven W. Lett, Director for Satellite and Private Sector Advisers William F. Utlaut, Director, Institute for Cable Policy, Bureau of Economic and Telecommunication Sciences, Business Affairs, Department of State H. Gary Greene, Director, Moss Landing National Telecommunications and Marine Laboratories, Moss Landing, Information Administration, Advisers California Department of Commerce, Boulder, James L. Ball, Associate Chief for Policy, Donald R. Montgomery, Earth Science Colorado International Bureau, Federal Flight Experiment Program Office, Alternate Representative Communications Commission Caltech/Jet Propulsion Laboratory, Michael Deich, Special Assistant to the Pasadena, California Gary M. Fereno, Director for CITEL and President, National Economic ITU-T Standards Policy, International Council, The White House United States Observer Delegation to Communications and Information Michele Farquhar, Acting Deputy the International Coffee Council, Policy, Bureau of Economic and Assistant Secretary, National International Coffee Organization Business Affairs, Department of State Telecommunications and Information (ICO), London, September 25–29, 1995 Advisers Administration, Department of Commerce Principal Observer Randall S. Bloomfield, Electronics Robin J. Frank, Attorney Adviser, Office Michael Glover, Economic Officer, Engineer, Institute for of the Legal Adviser, Department of United States Embassy, London Telecommunication Sciences, State National Telecommunications and Jack M. Gleason, Director of Private Sector Observer Information Administration, International Policy, National Department of Commerce, Boulder, Telecommunications and Information John T. Hays, President and Chief Colorado Administration, Department of Executive Officer, Coast Kona Coffee D. Wayne Hanson, Electrical Engineer, Commerce Group, Inc., Honolulu, Hawaii National Institute of Standards and Olga Madruga-Forti, Senior Attorney- United States Delegation to Study Technology, Department of Adviser, International Bureau, Federal Group Two (Network Operation), Commerce, Boulder, Colorado Communications Commission Telecommunications Standardization Wendell R. Harris, Assistant Bureau Diane E.V. Steinour, Sector, International Chief, Common Carrier Bureau, Telecommunications Policy Telecommunication Union (ITU), Federal Communications Commission Specialist, National Geneva, September 19–29, 1995 Richard O. Savoye, Electronics Telecommunications and Information Engineer, National Communications Administration, Department of Representative Systems, Arlington, Virginia Commerce Neil Seitz, Deputy Director, Institute for Earl S. Barbely, Telecommunications Telecommunication Sciences, Private Sector Advisers and Information Standards, National Telecommunications and Stephen Ganote, Director-International International Communications and Information Administration, and Federal Affairs, Comsat World Information Policy, Bureau of Department of Commerce, Boulder, Systems, Comsat Corporations, Economic and Business Affairs, Colorado Bethesda, Maryland Department of State 63908 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Advisers Anita Kaufman, MCI Corporation, Rye Standards, Office of International John F. Copes, Attorney Adviser, Brook, New York Communications and Information International Bureau, Federal Mark Neibert, COMSAT Corporation, Policy, Bureau of Economic and Communications Commission Bethesda, Maryland Business Affairs, Department of State Roger Nucho, Director of Standards, Bell Richard L. Swanson, Special Services Advisers Division, International Liaison Staff, Atlantic, Arlington, Virginia Arthur Reilly, BELLCORE, Red Bank, Private Radio Bureau, Federal Douglas V. Davis, Attorney Adviser, New Jersey Communications Commission International Bureau, Federal Robert J. Smith, Director, Science and Communications Commission Private Sector Advisers Technology, NYNEX Corporation, William Utlaut, Director, Institute for Joseph Alfred, AT&T, Bedminster, New Cambridge, Massachusetts Telecommunication Sciences, Martin Sullivan, Director, BELLCORE, Jersey National Telecommunications and T. Stephen Cheston, Director of Red Bank, New Jersey Information Administration, International Government Relations, United States Delegation to Study Department of Commerce, Boulder, Iridium, Inc., Washington, DC Group Two (Network Operation), Colorado Steve Engelman, Senior Staff Member, Telecommunication Standardization Private Sector Advisers MCI, Richardson, Texas Sector, International Fred Gaechter, Member, Technical Staff, Telecommunication Union (ITU), Richard P. Brandt, DB Consulting, North American Numbering Plan Geneva, September 19–29, 1995 Annandale, New Jersey Administration, Bellcore, Livingston, Gary Fishman, Technical Standards New Jersey Representative Director, AT&T, Bedminster, New Cathy Handley, Manager, Technical Earl S. Barbely, Telecommunications Jersey Industry Issues, U.S. West and Information Standards, Otto J. Gusella, Executive Director, Communications, Denver, Colorado International Communications and Alliance for Telecommunications Robert Madden, Manager, AT&T, Information Policy, Bureau of Industry Solutions (ATIS), Morristown, New Jersey Economic and Business Affairs, Washington, D.C. Mark Neibert, Director for International Department of State George Helder, Consultant, Picturetel Standards Development, COMSAT Corporation, Moraga, California Advisers World Systems, Bethesda, Maryland Anita Kaufman, MCI Corporation, Rye Lawrence Young, Director, Technical John F. Copes, Attorney Adviser, Brook, New York Standards, Ameritech Services, International Bureau, Federal Mark Neibert, COMSAT Corporation, Hoffman Estates, Illinois. Communications Commission Bethesda, Maryland United States Delegation to the Richard L. Swanson, Special Services Roger Nucho, Director of Standards, Bell Telecommunications Standardization Division, International Liaison Staff, Atlantic, Arlington, Virginia Advisory Group (TSAG), International Private Radio Bureau, Federal Arthur Reilly, BELLCORE, Red Bank, Telecommunication Union (ITU), Communications Commission New Jersey Geneva, September 19–22, 1995 Private Sector Advisers Robert J. Smith, Director, Science and Technology, NYNEX Corporation, Joseph Alfred, AT&T, Bedminster, New Representative Cambridge, Massachusetts Jersey Earl S. Barbely, Director, Martin Sullivan, Director, BELLCORE, T. Stephen Cheston, Director of Telecommunications and Information Red Bank, New Jersey International Government Relations, Standards, Office of International Iridium, Inc., Washington, D.C. Communications and Information United States Delegation to the Working Steve Engelman, Senior Staff Member, Policy, Bureau of Economic and Party on the Facilitation of MCI, Richardson, Texas Business Affairs, Department of State International Trade Procedures and its Fred Gaechter, Member, Technical Staff, Subgroups, Economic Commission for Advisers North American Numbering Plan Europe (ECE), Geneva, September 18– Administration, Bellcore, Livingston, Douglas V. Davis, Attorney Adviser, 22, 1995 New Jersey International Bureau, Federal Cathy Handley, Manager, Technical Representative Communications Commission Industry Issues, U.S. West William Utlaut, Director, Institute for Bernestine Allen, Chief, International Communications, Denver, Colorado Telecommunication Sciences, Cooperation and Trade Division, Robert Madden, Manager, AT&T, National Telecommunications and Office of International Transportation Morristown, New Jersey Information Administration, and Trade, Department of Mark Neibert, Director for International Transportation Department of Commerce, Boulder, Standards Development, COMSAT Colorado World Systems, Bethesda, Maryland Advisers Private Sector Advisers Lawrence Young, Director, Technical Bernadette Curry, Electronic Commerce/ Standards, Ameritech Services, Richard P. Brandt, DB Consulting, EDI Program Manager, Department of Hoffman Estates, Illinois Annandale, New Jersey the Treasury Gary Fishman, Technical Standards United States Delegation to the William R. Falkner, First Secretary, Director, AT&T, Bedminster, New Telecommunications Standardization United States Mission, Geneva Jersey Advisory Group (TSAG), International Robert Mall, Customs Attache´, United Otto J. Gusella, Executive Director, Telecommunication Union (ITU), States Mission to the European Union, Alliance for Telecommunications Geneva, September 19–22, 1995 Brussels Industry Solutions (ATIS), Roy G. Saltman, Computer Scientist, Washington, D.C. Representative Computer Systems Laboratory, George Helder, Consultant, Picturetel Earl S. Barbely, Director, National Institute of Standards and Corporation, Moraga, California Telecommunications and Information Technology, Department of Commerce Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63909

Larry E. South, Team Manager, Defense Adviser Alternate Representative Information Systems Agency, Gary Koerner, Defense Information Gary M. Fereno, Director for CITEL and Department of Defense Systems Agency, Department of ITU-T Standards Policy, Office of Dennis Van Langen, Chief, Software Defense International Communications and Engineering Standards, Center for Information Policy, Bureau of Standards, Defense Information Private Sector Advisers Economic and Business Affairs, Systems Agency, Department of Bohdan Bulawka, Government Relations Department of State Defense Office, Motorola, Washington, D.C. James Carroll, Program Director, Sachs/ Advisers Private Sector Advisers Freeman Associates, Inc., Landover, Susan Cronin, Economic Adviser, Robert T. Crowley, Research Triangle Maryland Consultants, Lodi, New Jersey Gary Fishman, Technical Standards United States Mission to the OAS, Steven B. Gaylor, Harbinger EDI, Director, AT&T, Bedminster, New Department of State Richardson, Texas Jersey Douglas V. Davis, Attorney Adviser, Robert Hurd, Washington Publishing Otto J. Gusella, Executive Director, International Bureau, Federal Company, Gaithersburg, Maryland Alliance for Telecommunications Communications Commission Gaile L. Spadin, Data Interchange Industry Solutions (ATIS), Nancy Eskinazi, Telecommunications Standards Association, Inc., Washington, D.C. Policy Adviser, National Alexandria, Virginia George K. Helder, Consultant, Picturetel Telecommunications and Information Corporation, Moraga, California Administration, Department of United States Delegation to the Donald M. Jansky, President, Jansky/ Commerce Committee on Human Settlements, Barmat Telecommunications, Robert Fenishel, Senior Engineer, Office Fifty-Sixth Session, Economic Washington, D.C. Commission for Europe (ECE), Geneva, of Technology Standards, National Harold G. Kimball, Consultant, Duillier, Communications System September 18–20, 1995 Switzerland James McGlinchy, Director, Mark Niebert, Director for International Representative International Commodity Policy and Standards Development, COMSAT Paul A. Leonard, Deputy Assistant World Systems, Bethesda, Maryland Non-ferrous Metals, Office of the Secretary for Policy Development, Thomas Sullivan, Sullivan United States Trade Representative, Office of Policy Development and Telecommunications Associates, Executive Office of the President Research, Department of Housing and Edgewater, Maryland Joan Segerson, Counsellor, United States Urban Development Lawrence Young, Director, Technical Mission to the OAS, Department of State Private Sector Adviser Standards, Ameritech Services, Hoffman Estates, Illinois Robert Stevens, International Bureau, Mary Paumen, Housing Consultant, Federal Communications Commission Malvern, Pennsylvania United States Delegation to the Maritime Transport Committee (MTC), Private Sector Advisers United States Delegation to the Organization for Economic Cooperation Patricia Cooper, Director, Regulatory Telecommunication Standardization and Development (OECD), Paris, Affairs, PANAMSAT, Greenwich, Advisory Group (TSAG) and September 11–12, 1995 Radiocommunication Advisory Group Connecticut (RAG), Joint Working Party on Representative Raymond Crowell, Director, Industry Refinement of the Radiocommunication Stephen M. Miller, Office of Maritime and Government Planning, COMSAT Sector and the Telecommunication and Land Transport, Bureau of World Systems, Bethesda, Maryland Standardization Sector, International Economic and Business Affairs, David Fine, Vice President, Government Telecommunication Union (ITU), Department of State and International Relations, Southwestern Bell, Washington, D.C. Geneva, September 15–18, 1995 Alternate Representative Karen Gies, Policy Analyst, MCI Representative Ralph Edwards, International Telecommunications, Inc., John Gilsenan, Office of International Economist, Office of International Washington, D.C. Communications and Information Activities, Maritime Administration, Thomas J. Plevyak, Manager for Policy, Bureau of Economic and Department of Transportation Standards, Bell Atlantic, Arlington, Business Affairs, Department of State Private Sector Adviser Virginia Alternate Representatives Donald L. O’Hare, Vice President, Sea- Arthur Reilly, Bellcore, Washington, D.C. William Luther, International Adviser, Land Corporation, Iselin, New Jersey Field Operations Bureau, Federal United States Delegation Permanent United States Delegation to the United Communications Commission Consultative Committee I, Inter- Nations Fourth World Conference on Richard D. Parlow, Associate American Telecommunications Women, Beijing, September 4–15, 1995 Administrator, Office of Spectrum Commission (CITEL), Organization of Ex-Officio Head of Delegation (While in Management, National American States (OAS), Washington, Attendance) Telecommunications and Information D.C., September 5–8, 1995 Administration, Department of Hillary Rodham Clinton, The First Lady Commerce Representative of the United States of America, William F. Utlaut, Director, Institute for Earl S. Barbely, Director, Honorary Chair Telecommunication Sciences, Telecommunications and Information Chair (Representative) National Telecommunications and Standards, Office of International Information Administration, Communications and Information The Honorable Madeleine K. Albright, Department of Commerce, Boulder, Policy, Bureau of Economic and Ambassador, United States Permanent Colorado Business Affairs, Department of State Representative to the United Nations 63910 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Co-Chairs (Alternate Representatives) Organization Affairs, Department of Private Sector Advisers The Honorable Donna Shalala, Secretary State Laila Al-Marayati, M.D., President, of Health and Human Services, The Honorable Madeleine Kunin, Muslim Women’s League, Glendae, Department of Health and Human Deputy Secretary, Department of California Services Education Myrna Blyth, Publishing Director and The Honorable Victor Marrero, Editor-in-Chief, Ladies Home Journal, Alternate Chair (Alternate Ambassador, United States New York Representative) Representative to the United Nations Elizabeth Coleman, Chairman of the The Honorable Timothy E. Wirth, Under Economic and Social Council Board of Directors and Chief The Honorable Sally Shelton, Assistant Secretary for Global Affairs, Executive Officer, Maidenform, Administrator, United States Agency Department of State Atlanta, Georgia for International Development Lynn Cutler, Senior Vice President of Deputy Chair (Alternate Representative) Advisers Public Affairs, The Kamber Group, Marjorie Margolies-Mezvinsky, Office of Evan Bloom, Office of the Legal Washington, DC the Conference Secretariat, Bureau of Felice Gaer, Director, Jacob Blaustein Advisor, Department of State Global Affairs, Department of State Iris Burnett, Chief of Staff, United States Institute for Human Rights, American Jewish Committee, New York Vice Chairs (Alternate Representatives) Information Agency Bonnie Campbell, Director, Violence Adrienne Germain, Vice President and J. Veronica Biggins, Executive Search Against Women Office, Department of Program Director, International Consultant, Heidrick & Struggles, Justice Women’s Health Coalition, New York Former Senior Advisor to the Nils Daulaire, Deputy Assistant Sister Dorothy Anne Kelly, President, President and Director of Presidential Administrator, Health and College of New Rochelle, New Personnel, Atlanta, Georgia Population, United States Agency for Rochelle, New York The Honorable Geraldine Ferraro, International Development Marilyn Monahan, Secretary-Treasurer, United States Representative to the Kathleen Hendrix, Office of the National Education Association, United Nations Commission on Conference Secretariat, Bureau of Washington, DC Human Rights, New York, New York Global Affairs, Department of State San Juanita Munoz, Student, Carnegie Thomas Kean, President, Drew The Honorable Judith Heumann, Mellon University, Pittsburgh, University, Madison, New Jersey Assistant Secretary, Department of Pennsylvania Julia Vadala Taft, President and Chief Congressional Advisors Education Sharon Kotok, Office of the Conference Executive Officer, InterAction, The Honorable Jane F. Harmon, United Secretariat, Bureau of Global Affairs, Washington, DC States House of Representatives Department of State, Sarah Kovner, Linda Tarr-Whelan, President, Center The Honorable Carolyn B. Maloney, Special Assistant to the Secretary, for Policy Alternatives, Washington, United States House of Department of Health and Human DC Representatives Services Virginia Trotter-Betts, JD, MSN, RN, The Honorable Constance A. Morella, The Honorable Ginger Lew, General President, American Nurses United States House of Counsel, Department of Commerce Association, Nashville, Tennessee Representatives Ellen Marshall, Acting Coordinator for Susan Weld, Lecturer in Law, Boston The Honorable Nancy Pelosi, United Population, Bureau of Population, College Law School, Boston, States House of Representatives Refugees and Migration, Department Massachusetts The Honorable, Christopher H. Smith, of State Marie Wilson, President, Ms. Senior Congressional Delegate, United The Honorable Jean C. Nelson, Foundation, New York States House of Representatives Counselor to the Administrator, The Honorable Barbara F. Vucanovich, UNITED STATES OBSERVER DELEGATION TO THE Environmental Protection Agency TWENTY-EIGHTH GENERAL CONFERENCE OF THE United States House of The Honorable Karen B. Nussbaum, UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND Representatives Director, Women’s Bureau, CULTURAL ORGANIZATION, PARIS, OCTOBER 25± Congressional Staff Advisors Department of Labor NOVEMBER 16, 1995 The Honorable Jan O. Piercy, United Principal Observer Kristen F. Gilley, Professional Staff States Executive Director, World Member, Committee on International Bank, Department of the Treasury Melinda L. Kimble, Deputy Assistant Relations, United States House of David Stewart, Office of the Legal Secretary for Global Issues, Bureau of Representatives Advisor, Department of State International Organization Affairs, Grover J. Rees III, Staff Director/Chief Bisa Williams-Manigault, United States Department of State Counsel, Subcommittee on Mission to the United Nations, New Public Members International Operations and Human York Rights Committee on International Patricia Gentry Edington, Former Relations, United States House of Public Members Executive Director and President, City Representatives The Honorable Maria Antonietta of Mobile Historic Development Mara E. Rudman, Minority Counsel, Berriozabal, United States Principal Commission, Mobile, Alabama Committee on International Relations, Representative to the Commission of Lewis Katz, Senior Partner, Katz, Ettin, United States House of Women, Organization of American Levine, Kurzwell and Weber, Representatives States, San Antonio, Texas Advocates, Cherry Hill, New Jersey Arthenia L. Joyner, Founding Partner, Senior Advisers Stewart, Joyner, Jordan-Holmes and Observers Scott S. Hallford, Charge d’Affaires, ad Holmes, Tampa, Florida Athena Katsoulos, United States interim, American Embassy, Beijing Dorothy V. Lamm, Columnist, Observer Mission to the United Melinda L. Kimble, Deputy Assistant Psychiatric Social Worker and Health Nations Educational, Scientific and Secretary, Bureau of International Care Advocate, Denver, Colorado Cultural Organization, Paris Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63911

William W. McIlhenny, United States Radiocommunications Division, Robert Mazer, Partner, Rosenman & Observer Mission to the United International Bureau, Federal Colin, Washington, D.C. Nations Educational, Scientific and Communication Commission Edward F. Miller, Regulatory Affairs Cultural Organization, Paris Damon Ladson, Electronics Engineer, Consultant, Teledesic Corporation, Raymond E. Wanner, Deputy Director, Radiocommunications Policy Branch, Cleveland, Ohio Office of United Nations Technical Satellite and Radiocommunications Samuel Nguyen, Spectrum Systems Specialized Agencies, Department of Division, International Bureau, Engineer, COMSAT, Clarksburg, State Federal Communication Commission Maryland Senior Private Sector Adviser William G. Long, Jr., Assistant for Leonard R. Raish, Partner, Fletcher, Spectrum Utilization, Defense Heald & Hildreth, Rosslyn, Virginia Leonard H. Marks, Cohn and Marks, Information Systems Agency, Jayaram Ramasastry, Vice President, Law Firm, Washington, DC Department of Defense Loral Qualcomm Partnership, UNITED STATES DELEGATION TO THE WORLD Norman Olsen, Telecommunications Qualcomm, Washington, D.C. RADIOCOMMUNICATION CONFERENCE, Attache´, United States Mission, Eugene Rappaport, Manager, Industry & INTERNATIONAL TELECOMMUNICATION UNION Geneva Government Technology Issues (ITU), GENEVA, OCTOBER 23±NOVEMBER 17, 1995 Brian Ramsay, Telecommunications Management Division, AT&T, Specialist, Office of Spectrum Representative Bedminster, New Jersey Management, National Brian Fontes, International Edward E. Reinhardt, Telecommunications and Information Telecommunications Consultant, Communications and Information Administration, Department of Policy, Bureau of Economic and McLean, Virginia Commerce Alan Renshaw, Program Manager, Business Affairs, Department of State George Sakai, Deputy Program Director, Starsys Global Positioning Inc., Spectrum Policy and Management, Alternate Representatives Lanham, Maryland Spectrum Engineering Division, Raul Rey, Regulatory Affairs Manager, Cecily Holiday, Deputy Chief, Satellite Federal Aviation Administration, TRW, Odyssey Services Organization, and Radiocommunications Division, Department of Transportation International Bureau, Federal Douglas Spalt, Electronics Engineer, Redondo Beach, California Communication Commission Defense Information Systems Agency, Raul Rodriguez, Partner, Leventhal, Richard Parlow, Associate Department of Defense Senter & Lerman, Washington, D.C. Administrator, Office of Spectrum Diane Garfield, Principal Engineer, Walda Roseman, President, Compass Management, National Computer Sciences Corporation, Rose International, Inc., Washington, Telecommunications and Information Sterling, Virginia D.C. Administration, Department of Farzad Ghazvinian, Director, Roger Rusch, Deputy Managing Director, Commerce Communications Systems, Teledesic, TRW, Odyssey Services Organization, Warren Richards, Executive Director for Redondo Beach, California Technical Matters, International Kirkland, Washington Erik Goldman, Director, Business Jill Stern, Telecommunications Counsel, Communications and Information Development, LEO One, St. Louis, Shaw, Pittman, Potts & Trowbridge, Policy, Bureau of Economic and Missouri Washington, D.C. Business Affairs, Department of State Gerald B. Helman, Vice President, Thomas Sullivan, Sullivan Advisers Mobile Communications Holdings, Telecommunications Associates, Dexter Anderson, Telecommunications Inc., Washington, DC Edgewater, Maryland Manager, International Broadcasting Shant Hovnanian, Cellular Vision, New Leslie Taylor, President, Leslie Taylor & Bureau, United States Information York, New York Associates, Bethesda, Maryland Agency George Hrycenko, Consultant, Hughes Robert Taylor, Taylor Richard Barth, Director, Office of Radio Space and Communications Telecommunications and Computers, Frequency Management, Department Company, Los Angeles, California Rosharon, Texas of Commerce Kris Hutchinson, Director, Frequency David Weinreich, Manager, Systems Donna Bethea, Electronics Engineer, Management, Aeronautical Radio, Inc. Simulation & Evaluation Department, Satellite Engineering Branch, Satellite (ARINC), Annapolis, Maryland COMSAT, Clarksburg, Maryland and Radiocommunications Division, John P. Janka, Partner, Latham & Jack Wengryniuk, Manager Regulatory International Bureau, Federal Watkins, Washington, D.C. Affairs, Iridium, Washington, D.C. Communication Commission Donald Jansky, President, Jansky/ Robert Wiedeman, Vice President Edward Davison, Electronics Engineer, Barmat Telecommunications, Inc., Engineering, Globalstar, San Jose, Office of Spectrum Management, Washington, DC California National Telecommunications and Ronald J. Jarvis, Telecommunications Richard Wright, Associate Program Information Administration, Counsel, Final Analysis Manager, Computer Sciences Department of Commerce Communications Services, Inc., Corporation, Sterling, Virginia William Hatch, Program Manager, Office Greenbelt, Maryland of Spectrum Management, National Thomas Keller, Senior Partner, Verner United States Delegation to the World Telecommunications and Information Liipfert Law Firm, Washington, DC Radiocommunication Conference, Administration, Department of Ronald Lepkowski, Vice President, International Telecommunication Commerce Engineering, Constellation Union (ITU), Geneva, October 23– William H. Jahn, Executive Director for Communications, Fairfax, Virginia November 17, 1995 Lon Levin, Vice President and Administrative Matters, International Representative Communications and Information Regulatory Counsel, American Mobile Policy, Bureau of Economic and Satellite Corporation, Reston, Virginia Brian Fontes, International Business Affairs, Department of State Paul Locke, Manager of Space Segment Communications and Information Kristi Kendall, Attorney Adviser, Engineering, Orbcomm, Dulles, Policy, Bureau of Economic and Satellite Policy Branch, Satellite and Virginia Business Affairs, Department of State 63912 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Alternate Representatives George Sakai, Deputy Program Director, Alan Renshaw, Program Manager, Cecily Holiday, Deputy Chief, Satellite Spectrum Policy and Management, Starsys Global Positioning, Inc., and Radiocommunications Division, Spectrum Engineering Division, Lanham, Maryland Raul Rey, Regulatory Affairs Manager, International Bureau, Federal Federal Aviation Administration, TRW, Odyssey Services Organization, Communications Commission Department of Transportation Douglas Spalt, Electronics Engineer, Redondo Beach, California Richard Parlow, Associate Raul Rodriguez, Partner, Leventhal, Administrator, Office of Spectrum Defense Information Systems Agency, Department of Defense Senter & Lerman, Washington, D.C. Management, National Walda Roseman, President, Compass Telecommunications and Information Diane Garfield, Principal Engineer, Computer Sciences Corporation, Rose International, Inc., Washington, Administration, Department of D.C. Commerce Sterling, Virginia Farzad Ghazvinian, Director, Roger Rusch, Deputy Managing Director, Warren Richards, Executive Director for TRW, Odyssey Services Organization, Technical Matters, International Communications Systems, Teledesic, Kirkland, Washington Redondo Beach, California Communications and Information Jill Stern, Telecommunications Counsel, Erik Goldman, Director, Business Policy, Bureau of Economic and Shaw, Pittman, Potts & Trowbridge, Business Affairs, Department of State Development, LEO One, St. Louis, Washington, D.C. Missouri Thomas Sullivan, Sullivan Advisers Gerald B. Helman, Vice President, Telecommunications Associates, Dexter Anderson, Telecommunications Mobile Communications Holdings, Edgewater, Maryland Manager, International Broadcasting Inc., Washington, D.C. Leslie Taylor, President, Leslie Taylor & Bureau, United States Information Shant Hovnanian, Cellular Vision, New Associates, Bethesda, Maryland Agency York, New York Robert Taylor, Taylor Richard Barth, Director, Office of Radio George Hrycenko, Consultant, Hughes Telecommunications and Computers, Frequency Management, Department Space and Communications Rosharon, Texas of Commerce Company, Los Angeles, California David Weinreich, Manager, Systems Donna Bethea, Electronics Engineer, Kris Hutchinson, Director Frequency Simulation & Evaluation Department, Satellite Engineering Branch, Satellite Management, Aeronautical Radio, Inc. COMSAT, Clarksburg, Maryland and Radiocommunications Division, (ARINC), Annapolis, Maryland Jack Wengryniuk, Manager Regulatory International Bureau, Federal John P. Janka, Partner, Latham & Affairs, Iridium, Washington, D.C. Communications Commission Watkins, Washington, D.C. Robert Wiedeman, Vice President Edward Davison, Electronics Engineer, Donald Jansky, President, Jansky/ Engineering, Globalstar, San Jose, Office of Spectrum Management, Barmat Telecommunications, Inc., California National Telecommunications and Washington, D.C. Richard Wright, Associate Program Information Administration, Ronald J. Jarvis, Telecommunications Manager, Computer Sciences Department of Commerce Counsel, Final Analysis Corporation, Sterling, Virginia William Hatch, Program Manager, Office Communications Services, Inc., United States Delegation to the of Spectrum Management, National Greenbelt, Maryland International Cotton Advisory Telecommunications and Information Thomas Keller, Senior Partner, Verner Committee (ICAC), 54th Plenary Administration, Department of Liipfert Law Firm, Washington, D.C. Meeting, Manila, October 22–27, 1995 Commerce Ronald Lepkowski, Vice President, Representative William H. Jahn, Executive Director for Engineering, Constellation Administrative Matters, International Communications, Fairfax, Virginia Kenneth E. Howland, Director, Tobacco, Communications and Information Lon Levin, Vice President and Cotton and Seeds Division, Foreign Policy, Bureau of Economic and Regulatory Counsel, American Mobile Agricultural Service, Department of Business Affairs, Department of State Satellite Corporation, Reston, Virginia Agriculture Kristi Kendall, Attorney Adviser, Paul Locke, Manager of Space Segment Alternate Representative Satellite Policy Branch, Satellite and Engineering, Orbcomm, Dulles, Radiocommunications Division, Virginia Lana Bennett, Deputy Director, Tobacco, International Bureau, Federal Robert Mazer, Partner, Rosenman & Cotton and Seeds Division, Foreign Communications Commission Colin, Washington, D.C. Agricultural Service, Department of Damon Ladson, Electronics Engineer, Edward F. Miller, Regulatory Affairs Agriculture Radiocommunications Policy Branch, Consultant, Teledesic Corporation, Advisers Cleveland, Ohio Satellite and Radiocommunications Wayne Bjorlie, Leader, Fibers Group, Samuel Nguyen, Spectrum Systems Division, International Bureau, Consolidated Farm Service Agency, Engineer, COMSAT, Clarksburg, Federal Communications Commission Department of Agriculture William G. Long, Jr., Assistant for Maryland Lawrence Hall, Agricultural Counselor, Spectrum Utilization, Defense Leonard R. Raish, Partner, Fletcher, United States Embassy, Manila Information Systems Agency, Heald & Hildreth, Rosslyn, Virginia Department of Defense Jayaram Ramasastry, Vice President, Private Sector Advisers Norman Olsen, Telecommunications Loral Qualcomm Partnership, Jesse S. Barr, Assistant Director, Attache´, United States Mission, Qualcomm, Washington, D.C. Economic Services, National Cotton Geneva Eugene Rappaport, Manager, Industry & Council, Memphis, Tennessee Brian Ramsay, Telecommunications Government Technology Issues Adel Boutros, American Cotton Specialist, Office of Spectrum Management Division, AT&T, Marketing Cooperatives, Bakersfield, Management, National Bedminster, New Jersey California Telecommunications and Information Edward E. Reinhardt, Donald B. Conlin, Chairman Emeritus, Administration, Department of Telecommunications Consultant, New York Cotton Exchange, New Commerce McLean, Virginia York, New York Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63913

Neal P. Gillen, Executive Vice President Information Administration, Private Sector Advisers and General Counsel, American Department of Commerce, Boulder, Jerome Bevenour, AT&T, Silver Spring, Cotton Shippers Association, Colorado Maryland Washington, District of Columbia Private Sector Advisers William H. Butler III, MCI, Richardson, William May, Vice President, Foreign Texas Operations and Administration, James Carroll, Program Director, Sachs/ American Cotton Shippers Freeman Associates, Inc., Landover, United States Delegation to the Association, Memphis, Tennessee Maryland Subcommittee on Administrative and Robert Combs, Stanford Financial Matters (SCAF) (October 12, United States Delegation to the Telecommunications, Reston, Virginia 1995); the Subcommittee of the Whole Radiocommunication Assembly, Christine DiLapi, Senior Electrical on International Protection (SCIP) Radiocommunication Bureau, Engineer, Motorola Satellite (October 13, 1995); and the 46th International Telecommunication Communications, Chandler, Arizona Executive Committee Plenary, (October Union (ITU), Geneva, October 16–20, 16–20, 1995) of the United Nations High 1995 Farzad Ghazvinian, Director, Communications Systems, Teledesic Commissioner for Refugees (UNHCR), Representative Corporation, Kirkland, Washington Geneva, October 12–20, 1995 John Gilsenan, Office of Standards and Thomas Hayden, Teledesic Corporation, Subcommittee on Administrative and International Organizations, Kirkland, Washington Financial Matters (SCAF) (October 12, International Communications and Robert Hedinger, AT&T, Bedminster, 1995) Information Policy, Bureau of New Jersey Representative Economic and Business Affairs Donald Jansky, President, Jansky/ Department of State Barmat Telecommunications, William Brownfield, Counselor, Refugee Washington, D.C. and Migration Affairs, United States Alternate Representatives Hal Kimball, Consultant, Duillier, Mission, Geneva William Luther, Chief, Radio Policy, Switzerland Alternate Representative International Bureau, Federal Roger LeClair, Senior Engineer, Hughes Communication Commission Space and Communications, El Paula Reed Lynch, Office of Policy, Richard Parlow, Associate Segundo, California Bureau of Population, Refugees, and Administrator, Office of Spectrum Edward Miller, Consultant, Cleveland, Migration, Department of State Management, National Ohio Advisers Telecommunications and Information Eugene Rappoport, Manager, Industry Kelly Tallman Clements, Attache, Administration, Department of and Government Technology Issues Refugee and Migration Affairs, United Commerce Management Division, AT&T, States Mission, Geneva Bedminster, New Jersey Advisers Margaret Pollack, Office of Economic, Edward Reinhart, Telecommunications Human Rights, and Social Affairs, Eldon Haakinson, Institution for Consultant, McLean, Virginia Telecommunication Sciences, Bureau of International Organizations, Paul Rinaldo, American Radio Relay Department of State National Telecommunications and League, Washington, D.C. Information Administration, Kirk Ressler, First Secretary, Refugee Thomas Sullivan, Sullivan and Migration Affairs, United States Department of Commerce, Boulder, Telecommunications Associates, Colorado Mission, Geneva Edgewater, Maryland Luis Arreaga-Rodas, First Secretary, Gerald Hurt, Program Manager, Office of Robert Taylor, Taylor Spectrum Management, National Refugee and Migration Affairs, United Telecommunication and Computers, States Mission, Geneva Telecommunications and Information Rosharon, Texas Administration, Department of Michele Klein Solomon, Attorney David Weinreich, Department Manager, Commerce, Annapolis, Maryland Adviser, Office of the Legal Adviser COMSAT Laboratories, Clarksburg, Alex Latker, Attorney Adviser, for Human Rights and Refugees, Maryland International Policy Division, Department of State Common Carrier Bureau, Federal United States Delegation to the Civil Leon Weintraub, Counselor, Communications Commission Communications Planning Committee International Resource Management, Robert Mayher, Director, Spectrum (CCPC), North Atlantic Treaty United States Mission, Geneva Plans and Policy, National Organization (NATO), Brussels, Private Sector Adviser Telecommunications and Information October 16–18, 1995 Administration, Department of Ralston Deffenbaugh, Jr., Executive Representative Commerce Director, Lutheran Immigration, and John Reiser, Engineer, International Stephen R. Springer, National Refugee Service, New York, New York Branch, Policy and Rules Division, Communications System, Arlington, Martin A. Wenick, Executive Vice Mass Media Bureau, Federal Virginia President, Hebrew Immigrant Aid Communications Commission Society, Washington, District of Advisers David Struba, Chief, Spectrum Columbia Management Branch, Program Bernard Farrell, National Subcommittee of the Whole on Integration Division, Office of Space Communications System, Arlington, International Protection (SCIP) Communications, National Virginia (October 13, 1995) Aeronautics and Space Andy H. Rausch, National Administration Communications System, Arlington, Representative William Utlaut, Director, Institute for Virginia William Brownfield, Counselor, Refugee Telecommunications Sciences, E. Joseph Thompson, Federal and Migration Affairs, United States National Telecommunications and Emergency Management Agency Mission, Geneva 63914 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Alternate Representative David Kornbluth, Office of Policy, Advisers Bureau of Population, Refugees, and Paula Reed Lynch, Office of Policy, Mindel De La Torre, Deputy Chief, Migration, Department of State Bureau of Population, Refugees, and Policy, Telecommunications Division, Migration, Department of State Paula Reed Lynch, Office of Policy, International Bureau, Federal Bureau of Population, Refugees, and Communications Commission Advisers Migration, Department of State Roxanne McElvane, Attorney Adviser, Kelly Tallman Clements, Attache, Margaret Pollack, Office of Economic, Telecommunications Division, Refugee and Migration Affairs, United Human Rights, and Social Affairs, International Bureau, Federal States Mission, Geneva Bureau of International Organizations, Communications Commission Phyllis Coven, Director, International Department of State Private Sector Advisers Affairs, Immigration and Kirk Ressler, First Secretary, Refugee Gregg Daffner, Vice President, Naturalization Service, Department of and Migration Affairs, United States Government Affairs, PanAmSat, Justice Mission, Geneva Greenwich, Connectiicut Margaret Pollack, Office of Economic, Luis Arreaga-Rodas, First Secretary David Fine, Vice President, Government Human Rights, and Social Affairs, Refugee and Migration Affairs, United and International Relations, Bureau of International Organizations, States Mission, Geneva Southwestern Bell Corporation, Department of State Leonard Rogers, Deputy Assistant Washington, D.C. Kirk Ressler, First Secretary, Refugee Administrator, Bureau for Lynne Gallagher, President, Telecom/ and Migration Affairs, United States Humanitarian Response, Agency for Telematique International, Mission, Geneva International Development Washington, D.C. Luis Arreaga-Rodas, First Secretary, Michele Klein Solomon, Attorney- Jane Hurd, President, Severance Refugee and Migration Affairs, United Adviser, Office of the Legal Adviser International, Inc., Washington, D.C. States Mission, Geneva for Human Rights and Refugees, Joseph Jackson, Vice President, Business Theresa L. Rusch, Office of Refugee Department of State Development and Marketing, Systems Admissions, Bureau of Population, Engineering and Management Refugees and Migration, Department Private Sector Advisers Associates, Inc., Alexandria, Virginia Tedros Lemma, Worldspace, of State Ralston Deffenbaugh, Jr., Executive Washington, D.C. Michele Kelin Solomon, Attorney- Director, Lutheran Immigration and Adviser, Office of the Legal Adviser Martin Sullivan, Director, Standards Refugee Service, New York, New York Management, Bellcore, Red Bank, for Human Rights and Refugees, Martin A. Wenick, Executive Vice Department of State New Jersey President, Hebrew Immigrant Aid Diana Tyson, Global Accounts Manager, Private Sector Advisers Society, Washington, District of Human Resource Development, AT&T Columbia Ralston Deffenbaugh, Jr., Executive School of Business, Somerset, New Jersey Director, Lutheran Immigration and United States Delegation to the Refugee Service, New York, New York Subcommittee for the Preparation of a United States Delegation to the Western Martin A. Wenick, Executive Vice First Draft of the Study Group for the Central Atlantic Fishery Commission President, Hebrew Immigrant Aid Preparation of Uniform Rules on (WECAFC), Eighth Session, Food and Society, Washington, District of International Interests in Mobile Agriculture Organization (FAO), Columbia Equipment of the International Institute Caracas, Venezuela, November 20–24, for the Unification of Private Law 1995 46th Session of the Executive (UNIDROIT), Rome, October 11–13, Committee Plenary (October 16–20, 1995 Representative 1995) Rebecca L. Gaghen, Economic Officer, Representative Representative United States Embassy, Caracas Charles W. Mooney, Jr., Professor Law Alternate Representative Phyllis E. Oakley, Assistant Secretary, School, University of Pennsylvania, Bureau of Population, Refugees, and Philadelphia, Pennsylvania Charles S. Ahgren, Counselor for Migration, Department of State Economic Affairs, United States Private Sector Advisor Alternate Representative Embassy, Caracas Thomas Whalen, Condon and Forsyth, Daniel L. Spiegel, Ambassador, Private Sector Adviser Washington, D.C. Permanent Representative to the Miguel Rolon, Executive Director, United Nations and Other United States Delegation to the Working Caribbean Fisheries Management International Organizations, United Parties of Study Groups 1 and 2 Council, San Juan, Puerto Rico States Mission, Geneva Telecommunication Development United States Delegation to the 19th Sector, International Advisers Session of the Assembly International Telecommunication Union (ITU), Maritime Organization (IMO), London, William Brownfield, Counselor, Refugee Geneva, November 27–December 7, November 13–24, 1995 and Migration Affairs, United States 1995 Mission, Geneva Representative Representative Kelly Tallman Clements, Attache, Robert E. Kremek, Admiral, Refugee and Migration Affairs, United Doreen F. McGirr, Senior Counsellor, Commandant, United States Coast States Mission, Geneva Office of Telecommunications Guard, Department of Transportation Phyllis Coven, Director, International Development, International Affairs, Immigration and Communications and Information Alternate Representatives Naturalization Service, Department of Policy, Bureau of Economic and James C. Card, Chief, Office of Marine Justice Business Affairs, Department of State Safety, Security and Environmental Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63915

Protection, United States Coast Guard, Madalyn Maxwell, Assistant Attorney Alternate Representative Department of Transportation General, State of Illinois, Springfield, Wendy Grieder, United States National Bernice Powell, Office of Technical and Illinois Coordinator for NATO/CCMS, Office Specialized Agencies, Bureau of Marilyn Ray Smith, Chief Legal of International Activities, International Organization Affairs, Counsel, Child Support Enforcement Environmental Protection Agency Department of State Division, Department of Revenue, The Commonwealth of Massachusetts, Advisers Advisers Cambridge, Massachusetts Robert B. Axelrad, Senior Policy Joseph J. Angelo, Director for Standards, Adviser, Indoor Environments Office of Marine Safety, Security and United States Delegation To Study Group 15 (Transmission Systems and Division, Office of Air and Radiation, Environmental Protection, United Equipment), Telecommunication Environmental Protection Agency States Coast Guard, Department of Standardization Sector, International Christopher Dell, Deputy Director for Transportation Political Affairs, Office of European Gene F. Hammel, Assistant Director, Telecommunication Union (ITU), Geneva, November 13–24, 1995 Security and Political Affairs, Bureau Office of International Affairs, United of European and Canadian Affairs, States Coast Guard, Department of Representative Department of State Transportation Gary M. Fereno, Director for CITEL and Craig Dunkerley, Director, Office of Norman W. Lemley, Director, National ITU–TS Standards Policy, European Security and Political Maritime Center, United States Coast International Communications and Affairs, Bureau of European and Guard, Department of Transportation Information Policy, Bureau of Canadian Affairs, Department of State Gerard P. Yoest, Director, Office of Economic and Business Affairs, E. Kent Gray, Chief, Emergency International Affairs, United States Department of State Response Coordination Group, Coast Guard, Department of National Center for Environmental Transportation Adviser Health, Centers for Disease Control Private Sector Adviser Gary Rekstad, Electronics Engineer, and Prevention, Department of Health National Communications System and Human Services, Atlanta, Georgia Edward V. Kelly, Vice President, Stephen C. James, Special Assistant to American Maritime Officers (AMO), Private Sector Advisers the Director, National Risk Washington, District of Columbia Thomas Hanson, Senior Engineering Management Research laboratory, United States Delegation to the Special Associate, Corning Inc., Corning, New Environmental Protection Agency, Commission To Study the Operation of York Cincinnati, Ohio The Hague Conventions on the Law Fred W. Huffman, Standards Engineer, Walter W. Kovalick, Jr., Director, Applicable to Maintenance Obligations MCI Communications Corporation, Technology Innovation Office, Office and Those Conventions Concerning the Piscataway, New Jersey of Solid Waste and Emergency Recognition and Enforcement of Felix Kapron, Principal Engineer, Response, Environmental Protection Decisions in Respect of Maintenance Bellcore, Morristown, New Jersey Agency David J. Lindbergh, Coordinator for Obligations of The Hague Conference Richard A. Livingston, Turner-Fairbanks Standards, Picturtel Corporation, on Private International Law (HCOPIL), Highway Research Center, Danvers, Massachusetts The Hague, November 13–17, 1995 Department of Transportation, Mark Neibert, Director for International McLean, Virginia Representative Standards, COMSAT World Systems, Beaumont C. McClure, Special Assistant Peter H. Pfund, Assistant Legal Adviser Bethesda, Maryland to the State Director for International John Ng, Principal Engineer, Bellcore, for Private International Law, Office Programs, Bureau of Land Red Bank, New Jersey of the Legal Adviser, Department of Management, Department of the Marshall Schachtman, Consultant, The State Interior, Phoenix, Arizona Kohl Group, Morristown, New Jersey Gregory Phillips, CCMS Desk Officer, Alternate Representative Richard Schaphorst, President, Delta Office of European Security and Information Systems, Horsham, Gloria F. DeHart, Office of the Assistant Political Affairs, Bureau of European Pennsylvania Legal Adviser for Private International and Canadian Affairs, Department of Anthony Schiano, Senior Engineer, Law, Office of the Legal Adviser, State AT&T, Bedminster, New Jersey Department of State Francis A. Schiermeier, Director, Laszlo Szerenyi, Standards Engineer, Atmospheric Modeling Division, Adviser MCI Communications Corporation, National Exposure Research Richardson, Texas Stephen R. Grant, International Liaison, Laboratory, Environmental Protection Office of Child Support Enforcement, United States Delegation to the Agency, Research Triangle Park, Department of Health and Human Committee on the Challenges of Modern North Carolina Services Society (CCMS) Plenary, North Atlantic Lynn Schoolfield, CCMS Projects Treaty Organization (NATO), Officer, Office of International Private Sector Advisers Washington, D.C., November 13–15, Activities, Environmental Protection Patricia Apy, Co-Chair, International 1995 Agency Law Committee, Family Law Section, Alan B. Sielen, Deputy Assistant American Bar Association, Red Bank, Representatives Administrator for International New Jersey Sherri W. Goodman, Deputy Under Activities, Environmental Protection Gary Caswell, Assistant Attorney Secretary for Environmental Security, Agency General, State of Texas, San Antonio, Department of Defense Robert Simmons, Deputy Director, Texas The Honorable, William A. Nitze, Office of European and Security and Mary Jane Hamilton, Deputy Attorney Assistant Administrator for Political Affairs, Bureau of European General, State of California, International Activities, and Canadian Affairs, Department of Sacramento, California Environmental Protection Agency State 63916 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Mary Tracy, United States Mission to Thomas J. Plevyak, Manager for John McInerney, Senior Counsel, Import NATO, Brussels, Belgium Standards, Bell Atlantic, Arlington, Administration, Office of General Gary D. Vest, Principal Assistant Deputy Virginia Counsel, Department of Commerce Under Secretary for Environmental Arthur Reilly, Bellcore, Washington, Richard Self, Attache, Office of United Security, Department of Defense D.C. States Trade Representative, Geneva Leigh Rubinstein, Manager, Private Sector Advisers International Public Affairs, AT&T, Private Sector Adviser Philip W. Hemily, Former Deputy Washington, D.C. Scott Andersen, Consultant, Office of Assistant Secretary General for United States Delegation to the ITU/ Scientific and Environmental Affairs United States Trade Representative, CITEL Americas Regional Geneva of the North Atlantic Treaty Telecommunication Policy Meeting, Organization, Washington, D.C. Telecommunication Development [FR Doc. 96–29836 Filed 11–29–96; 8:45 am] Peter S. Liou, Institute for Defense Bureau, International BILLING CODE 4710±19±M Analyses, Alexandria, Virginia Telecommunication Union (ITU), and United States Delegation to the Commission for Inter-American Permanent Executive Committee of the Telecommunications (CITEL), Commission for Inter-American Organization of American States, DEPARTMENT OF TRANSPORTATION (OAS), Montevideo, Uruguay, December Telecommunications (CITEL), Federal Aviation Administration Organization of American States (OAS), 5–8, 1995 Montevideo, Uruguay, December 12–15, Representative 1995 [AC No. 00±56] Gary M. Fereno, Director for CITEL and Representative ITU-T Standards Policy, International Advisory Circular (AC) on Voluntary Industry Distributor Accreditation Gary M. Fereno, Director for CITEL and Communications and Information Program ITU-T Standards Policy, International Policy, Bureau of Economic and Communications and Information Business Affairs, Department of State AGENCY: Federal Aviation Policy, Bureau of Economic and Advisers Administration (FAA), DOT. Business Affairs, Department of State Susan Cronin, Economic Adviser, ACTION: Notice of Availability of Advisers United States Mission to the Organization of American States, Proposed AC 00–56. Susan Cronin, Economic Adviser, Department of State United States Mission to the James McGlinchey, Director, SUMMARY: This notice announces the Organization of American States, International Commodity Policy and availability of AC 00–56, which Department of State Non-Ferrous Metals, Office of the describes a system for the voluntary Edward M. Malloy, Deputy Coordinator, United States Trade Representative, accreditation of civil aircraft parts International Communications and Executive Office of the President distributors on the basis of voluntary Information Policy, Bureau of Robert Stephens, Economist, Federal industry oversight and provides Economic and Business Affairs, Communications Commission information that may be used for Department of State developing accreditation programs. James McGlinchey, Director, Private Sector Advisers International Commodity Policy and Raymond Crowell, Director, Industry EFFECTIVE DATE: September 5, 1996. Non-Ferrous Metals, Office of the and Government Planning, COMSAT ADDRESSES: Copies of this AC can be United States Trade Representative, World Systems, Bethesda, Maryland obtained free of charge from the U.S. Executive Office of the President Karen Gies, Regulatory Specialist, MCI Department of Transportation, Robert Stephens, Economist, Federal Telecommunications, Inc., Subsequent Distribution Office, Communications Commission Washington, D.C. Ardmore East Business Center, 3341 Q Leigh Rubinstein, Manager, Private Sector Advisers 75th Avenue, Landover, Maryland International Public Affairs, AT&T, 20785. Raymond Crowell, Director, Industry Washington, D.C. and Government Planning, COMSAT FOR FURTHER INFORMATION CONTACT: United States Delegation to the Joint Richard E. Nowak, AFS–350, Federal World Systems, Bethesda, Maryland Meeting of the Committee on David Fine, Vice President, Government Aviation Administration, 800 Antidumping Practices and the Independence Avenue, SW., and International Relations, Committee on Subsidies and Southwestern Bell, Washington, D.C. Washington, D.C. 20591, telephone 202– Countervailing Measures, Council on 267–7228 or facsimile 202–267–5115. Mario Florian, Director, Latin America, Goods, World Trade Organization Orbital Communications Corporation, (WTO), Geneva, December 4–8, 1995 SUPPLEMENTARY INFORMATION: This AC Dulles, Virginia may also be downloaded from the Karen Gies, Regulatory Specialist, MCI Representative FedWorld BBS by dialing the Internet at Telecommunications, Inc., Ronald K. Lorentzen, Director for WTO the following Uniform Resources Washington, D.C. Industrial Issues, Office of the United Location: Ftp.11fwux.fedworld.gov/ Catherine Hinckley, Regional Manager, States Trade Representative, pub/faa.btm. The file name is VIDAP. PanAmSat Corporation, Coral Gables, Executive Office of the President Florida Issued in Washington, D.C. on October 31, David F. Long, Director, International Advisers 1996. Regulatory Affairs, Sprint Mark Lunn, Policy Analyst, Office of Louis C. Cusimano, International, Reston, Virginia Policy, Import Administration, Acting Director, Flight Standards Service. Kevin Lynch, International Relations, International Trade Administration, [FR Doc. 96–30638 Filed 11–29–96; 8:45 am] AT&T, Morristown, New Jersey Department of Commerce BILLING CODE 4910±13±M Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63917

Executive Committee of the Aviation RTCA, Inc.; Government/Industry Free DATES: Comments must be received no Rulemaking Advisory Committee; Flight Steering Committee; Meeting later than January 31, 1997. Meeting ADDRESSES: Submit written comments Pursuant to section 10(a)(2) of the on any or all of the following proposed AGENCY: Federal Aviation Federal Advisory Committee Act (P.L. activities by mail to either: Ms. Gloria Administration (FAA), DOT. 92–463, 5 U.S.C., Appendix 2), notice is Swanson, Office of Planning and ACTION: Notice of meeting. hereby given for an RTCA Government/ Evaluation Division, RRS–21, Federal Industry Free Flight Steering Committee Railroad Administration, 400 Seventh SUMMARY: The FAA is issuing this notice meeting to be held December 12, 1996, Street, S.W., Washington, D.C. 20590, or to advise the public of a meeting of the starting at 1:30 p.m. The meeting will be Ms. MaryAnn Johnson, Office of Executive Committee of the Federal held at the Federal Aviation Information Technology and Aviation Administration Aviation Administration, 800 Independence Productivity Improvement, RAD–20, Rulemaking Advisory Committee. Avenue, S.W., Washington, DC 20591, Federal Railroad Administration, 400 in Conference Room 8ABC (8th floor). DATES: The meeting will be held on Seventh Street, S.W., Washington, D.C. December 17, 1996, at 10 a.m. Arrange The agenda will include: (1) 20590. Commenters requesting FRA to for oral presentations by December 10, Welcome/Opening Remarks; (2) Review acknowledge receipt of their respective 1996. Summary of the Previous Meeting; (3) comments must include a self-addressed Discuss Plans for Review and Status of stamped postcard stating, ‘‘Comments ADDRESSES: The meeting will be held at Free Flight Action Plan; (4) Report from on OMB control number lll.’’ the Regional Airline Association, 1200 Free Flight Select Committee; (5) Other Alternatively, comments may be 19th Street, NW., Washington, DC. Business; (6) Date and Location of Next transmitted via facsimile to (202) 632– FOR FURTHER INFORMATION CONTACT: Meeting. 3843 or (202) 632–3876 or by E-mail to Miss Jean Casciano, Federal Aviation Attendance is open to the interested Ms. Swanson at Administration, 800 Independence public but limited to space availability. [email protected] or to Ms. Avenue, SW., Washington, DC 20591, With the approval of the chairmen, Johnson at telephone (202) 267–9683; fax (202) members of the public may present oral [email protected]. Please 267–5075; e-mail statements at the meeting. Persons refer to the assigned OMB control [email protected]. wishing to present statements or obtain number in any correspondence submitted. FRA will summarize SUPPLEMENTARY INFORMATION: Pursuant information should contact the RTCA comments received in response to this to section 10(a)(2) of the Federal Secretariat, 1140 Connecticut Avenue, notice in a subsequent notice and Advisory Committee Act (Pub. L. 92– N.W., Suite 1020, Washington, DC, include them in its information 463; 5 U.S.C. App. II), notice is hereby 20036; (202) 833–9339 (phone) or (202) collection submission to OMB for given of a meeting of the Executive 833–9434 (fax). Members of the public approval. Committee to be held on December 17, may present a written statement to the 1996, at the Regional Airline committee at any time. FOR FURTHER INFORMATION CONTACT: Ms. Association, 1200 19th Street, NW., Issued in Washington, DC, on November Gloria Swanson, Office of Planning and Washington, DC, at 10 a.m. The agenda 22, 1996. Evaluation Division, RRS–21, Federal will include a briefing by the Janice L. Peters, Railroad Administration, 400 Seventh Rulemaking Business Process Designated Official. Street, S.W., Washington, D.C. 20590 (telephone: (202) 632–3318) or Reengineering team on its [FR Doc. 96–30639 Filed 11–29–96; 8:45 am] MaryAnn Johnson, Office of Information recommendations for improving the BILLING CODE 4810±13±M FAA rulemaking process. Technology and Productivity Improvement, RAD–20, Federal Attendance is open to the interested Railroad Administration, 400 Seventh public but will be limited to the space Federal Railroad Administration Street, S.W., Washington, D.C. 20590 available. The public must make (telephone: (202) 632–3226). (These arrangements by December 10, 1996, to Proposed Agency Information telephone numbers are not toll-free.) present oral statements at the meeting. Collection Activities; Comment The public may present written Request SUPPLEMENTARY INFORMATION: The statements to the executive committee at Paperwork Reduction Act of 1995 AGENCY: Federal Railroad any time by providing 25 copies to the (PRA), Pub. L. No. 104–13, Section 2, Administration, DOT. Executive Director, or by bringing the 109 Stat. 163 (1995) (codified as revised copies to him at the meeting. ACTION: Notice. at 44 U.S.C. 3501–3520), and its implementing regulations, 5 CFR Part Sign and oral interpretation can be SUMMARY: In accordance with the 1320, require Federal agencies to made available at the meeting, as well Paperwork Reduction Act of 1995 and provide 60 days notice to the public for as an assistive listening device, if its implementing regulations, the comment on information collection requested 10 calendar days before the Federal Railroad Administration (FRA) activities before seeking approval for meeting. Arrangements may be made by hereby announces that it is seeking reinstatement or renewal by OMB. 44 contacting the person listed under the reinstatement of 11 previously approved U.S.C. 3506(c)(2)(A); 5 CFR 1320.8(d)(1), heading FOR FURTHER INFORMATION information collection activities and 1320.10(e)(1), 1320.12(a). Specifically, CONTACT. renewal of 5 currently approved FRA invites interested respondents to Issued in Washington, DC, on November information collection activities. Before comment on the following summary of 25, 1996. submitting these information collection proposed information collection Chris A. Christie, requirements for clearance by the Office activities regarding (i) whether the Executive Director, Aviation Rulemaking of Management and Budget (OMB), FRA information collection activities are Advisory Committee. is soliciting public comment on specific necessary for FRA to properly execute [FR Doc. 96–30645 Filed 11–29–96; 8:45 am] aspects of the activities identified its functions, including whether the BILLING CODE 4910±3±M below. activities will have practical utility; (ii) 63918 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices the accuracy of FRA’s estimates of the the safety standards of this section. FRA Status: Reinstatement of a previously burden of the information collection and State inspectors use the information approved collection of information activities, including the validity of the to enforce the Federal regulations. The which has expired. methodology and assumptions used to information that is maintained at the job Title: Bad Order and Home Shop determine the estimates; (iii) ways for site also promotes safe bridge worker Card. FRA to enhance the quality, utility, and practices. OMB Control Number: 2130–0519. clarity of the information being Form Number(s): N/A. Abstract: Under 49 CFR Part 215, each collected; and (iv) ways for FRA to Affected Public: Businesses. railroad is required to inspect freight minimize the burden of information Respondent Universe: 575 railroads. cars placed in service and take the collection activities on the public by Frequency of Submission: On necessary remedial action when defects automated, electronic, mechanical, or occasion. are identified. Part 215 defects are other technological collection Total Responses: 6 annually. specific in nature and relate to items techniques or other forms of information Average Time Per Response: 2 that have or could have caused technology (e.g., permitting electronic minutes. accidents or incidents. Section 215.9 submission of responses). See 44 U.S.C. Estimated Total Annual Burden sets forth specific procedures that 3506(c)(2)(A)(i)–(iv); 5 CFR Hours: 12 minutes. railroads must follow when it is 1320.8(d)(1)(i)–(iv). FRA believes that Status: Reinstatement of a previously necessary to move defective cars for soliciting public comment will promote approved collection of information repair purposes. For example, railroads its efforts to reduce the administrative which has expired. must affix a ‘‘bad order’’ tag describing and paperwork burdens associated with Title: Filing of Dedicated Cars. each defect to each side of the freight the collection of information mandated OMB Control Number: 2130–0502. car. It is imperative that a defective by Federal regulations. In summary, Abstract: Title 49, part 215 of the freight car be tagged ‘‘bad order’’ so that FRA reasons that comments received Code of Federal Regulations prescribes it may be readily identified and moved will advance three objectives: (i) reduce certain conditions to be followed for the to another location for repair purposes reporting burdens; (ii) ensure that the movement of freight cars that are not in only. At the repair point, the ‘‘bad agency organizes information collection compliance with this part. These cars order’’ tag serves as a repair record. requirements in a ‘‘user friendly’’ format must be identified in a written report to Railroads must retain each tag for 90 to improve the use of such information; FRA before they are assigned to days to verify that proper repairs were and (iii) accurately assess the resources dedicated service, and the words made at the designated location. FRA expended to retrieve and produce ‘‘Dedicated Service’’ must be stenciled and State inspectors review all pertinent information requested. See 44 U.S.C. on each side of the freight car body. records to determine whether defective 3501. FRA uses the information to determine cars presenting an immediate hazard are Below are brief summaries of 11 whether the equipment is safe to operate being moved in transportation. previously approved information and that the operation qualifies for Form Number(s): N/A. collection activities and 5 currently dedicated service. See 49 CFR Affected Public: Businesses. approved information collection 215.5(c)(2), 215.5(d). Respondent Universe: 400 railroads. activities that FRA will submit for Form Number(s): N/A. Frequency of Submission: On clearance by OMB as required by the Affected Public: Businesses. occasion. PRA: Respondent Universe: 400 railroads. Total Responses: 40,000 tags. Title: Bridge Worker Safety Rules. Frequency of Submission: On Average Time Per Response: 10 OMB Control Number: 2130–0535. occasion. minutes. Abstract: Section 20139 of title 49 of Total Responses: 6. Estimated Total Annual Burden the United States Code required FRA to Average Time Per Response: 1 hour. Hours: 6,667 hours. issue rules, regulations, orders, and Estimated Total Annual Burden Status: Reinstatement of a previously standards for the safety of maintenance- Hours: 6 hours. approved collection of information of-way employees on railroad bridges, Status: Reinstatement of a previously which has expired. including standards for ‘‘bridge safety approved collection of information Title: Disqualification Proceedings. equipment, [such as] nets, walkways, which has expired. OMB Control Number: 2130–0529. handrails, and safety lines, and Title: Stenciling Reporting Mark on Abstract: Under 49 U.S.C. 20111(c), requirements for the use of vessels when Freight Cars. FRA is authorized to issue orders work is performed on bridges located OMB Control Number: 2130–0520. disqualifying railroad employees, over bodies of water.’’ FRA has added Abstract: Title 49, section 215.301 of including supervisors, managers, and 49 CFR Part 214 to establish minimum the Code of Federal Regulations sets other agents, from performing safety- workplace safety standards for railroad forth certain requirements that must be sensitive service in the rail industry for employees as they apply to railroad followed by railroad carriers and private violations of rail safety rules, bridges. car owners relative to identification regulations, standards, orders, or laws Specifically, Section 214.105(c) marks on railroad equipment. FRA, evidencing unfitness. FRA’s regulations, establishes standards and practices for railroads, and the public refer to the 49 CFR Part 209, Subpart D, implement safety net systems. Safety nets and net stenciling to identify freight cars. the statutory provision by requiring (i) installations are to be drop-tested at the Form Number(s): N/A. a railroad employing or formerly job site after initial installation and Affected Public: Businesses. employing a disqualified individual to before being used as a fall-protection Respondent Universe: 620 railroads. disclose the terms and conditions of a system, after major repairs, and at six- Frequency of Submission: On disqualification order to the individual’s month intervals if left at one site. If a occasion. new or prospective employing railroad; drop-test is not feasible and is not Total Responses: 31,000 cars. (ii) a railroad considering employing an performed, then a written certification Average Time Per Response: 45 individual in a safety-sensitive position must be made by the railroad or railroad minutes per car. to ask the individual’s previous contractor, or a designated certified Estimated Total Annual Burden employing railroad whether the person, that the net does comply with Hours: 23,250 hours. individual is currently serving under a Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63919 disqualification order; and (iii) a information serves to inform a railroad and obtaining employment in a safety- disqualified individual to inform his whether an employee or prospective sensitive position in the rail industry. new or prospective employer of the employee is currently disqualified from Form Number(s): N/A. disqualification order and provide a performing safety sensitive service copy of the same. Additionally, the based on the issuance of a Affected Public: Businesses. regulations prohibit a railroad from disqualification order by FRA. Frequency of Submission: employing a person serving under a Furthermore, it prevents an individual Recordkeeping requirement. disqualification order to work in a currently serving under a Reporting Burden: safety-sensitive position. This disqualification order from retaining

Average time per re- Total bur- CFR Respondent universe Total responses sponse den hours (minutes)

Provide copy of disqualification order to new or pro- 620 railroads ...... 3 orders ...... 30 1.5 spective employer. Provide copy of disqualification order to prospective 1 employee ...... 1 notification ...... 30 .5 employer. Request copy of disqualification order from previous 620 railroads ...... Usual & customary proce- N/A N/A employer. dure.

Total Estimated Burden Hours: 2 1972 (Act). The standards, 40 CFR Part compliance with the EPA standards. hours. 201, establish limits on the noise The certification and testing data Status: Reinstatement of a previously emissions generated by railroad ensures that locomotives built after approved collection of information locomotives under both stationary and December 31, 1979, have passed which has expired. moving conditions and railroad cars prescribed decibel standards for noise Title: New Locomotive Certification under moving conditions. Section 17 of emissions under EPA regulations. (Noise Compliance Regulations). the Act also requires the Secretary of Form Number(s): N/A. OMB Control Number: 2130–0527. Transportation to enforce these Affected Public: Businesses. Abstract: On January 14, 1976, the regulations and promulgate separate Environmental Protection Agency (EPA) regulations to ensure compliance with Frequency of Submission: On issued railroad noise emission standards the same. On December 23, 1983, FRA occasion; one-time. pursuant to the Noise Control Act of published 49 CFR Part 210 to ensure Reporting Burden:

Respondent Total re- Average time Total bur- CFR universe sponses per response den hours

Request for certification information ...... 2 40 30 minutes ...... 20 Apply badge or tag to cab of locomotive ...... 2 40 30 minutes ...... 20 Noise emission measurement ...... 2 40 3 hours ...... 120

Total Estimated Burden Hours: 160 intended or other condition hazardous vehicle enabling FRA to obtain the hours. to the movement of a train. Section necessary information to make logical Status: Reinstatement of a previously 233.7 sets forth the specific and informed decisions concerning approved collection of information requirements for reporting signal carrier requests to modify or which has expired. failures within 15 days in accordance discontinue signaling systems. Section Title: Railroad Signal System with the instructions printed on Form 235.5 requires railroads to apply for Requirements. FRA F 6180.14. Finally, Section 233.9 FRA approval to discontinue or OMB Control Number: 2130–0006. sets forth the specific requirements for materially modify railroad signaling Abstract: The regulations pertaining the ‘‘Signal System Five-Year Report.’’ It systems. Section 235.7 defines ‘‘material to railroad signal systems are contained requires that on or before April 1, 1997, modifications’’ and identifies those in 49 CFR Parts 233 (Signal System and every five calender years thereafter, changes that do not require agency Reporting Requirements), 235 each railroad must file a signal systems approval. Section 235.8 provides that (Instructions Governing Applications for status report. 61 FR 33872, July 1, 1996. any railroad may petition FRA to seek Approval of a Discontinuance or The report is to be prepared on a form relief from the requirements provided Material Modification of a Signal issued by FRA in accordance with the under 49 CFR Part 236. Sections 235.10, System), and 236 (Rules, Standards, and instructions and definitions provided. 235.12, and 235.13 describe where the Instructions Governing the Installation, Id. petition must be submitted, what Inspection, Maintenance, and Repair of Title 49, part 235 of the Code of information must be included, the Systems, Devices and Appliances). Federal Regulations sets forth the organizational format, and the official Section 233.5 provides that each specific conditions under which FRA authorized to sign the application. railroad must report to FRA within 24 approval of modification or Section 235.20 sets forth the process for hours after learning of an accident or discontinuance of railroad signal protesting the granting of a carrier incident arising from the failure of a systems is required and prescribes the application for signal changes or relief signal appliance, device, method, or methods available to seek such from the rules, standards, and system as required by Part 236 that approval. The application process instructions. This section provides the results in a more favorable aspect than prescribed under Part 235 provides a information that must be included in 63920 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices the protest, the address for filing the at the office of a supervisory official location of the test, the test results must protest, the time limit for filing the having proper authority. Results of tests be transmitted to either the dispatcher protest, and the requirement that a made in compliance with Section or another designated official at the test person requesting a public hearing 236.587 must be retained for 92 days, location, who must keep a written explain the need for such a forum. and results of all other tests must be record of the test results and the name Section 236.110 requires that the test retained until the next record is filed, of the person performing the test. All results of certain signaling apparatus be but in no case less than one year. records prepared under this section are recorded and specifically identify the Additionally, Section 236.587 required to be retained for at least 92 tests required under Sections 236.102– requires each railroad to make a days. Finally, Section 236.590 requires 236.109; Sections 236.376 to 236.387; departure test of cab signal, train stop, the carrier to clean and inspect the Sections 236.576, 236.577, and Sections or train control devices on locomotives pneumatic apparatus of automatic train 236.586–236.589. Section 236.110 before that locomotive enters the stop, train control, or cab signal devices further provides that the test results equipped territory. This section further on locomotives every 736 days, and to must be recorded on preprinted or requires that whoever performs the test stencil, tag, or otherwise mark the computerized forms provided by the must certify in writing that the test was pneumatic apparatus indicating the last carrier and that the forms show the properly performed. The certification cleaning date. name of the railroad, place and date of and the tests results must be posted in Form Number(s): FRA F 6180.14; the test conducted, equipment tested, the locomotive cab with a copy of the 6180.47. test results, repairs, replacements, and certification and test results retained at Affected Public: Businesses. adjustments made, and the condition of the office of a supervisory official Frequency of Submission: On the apparatus. This section also requires having proper authority. However, if it occasion; every five years, the employee making the test must sign is impractical to leave a copy of the recordkeeping. the form, and that the record be retained certification and test results at the Reporting Burden:

Respondent Total bur- CFR section universe Total responses Average time per response den hours

233.5ÐReporting of accidents ...... 620 10 ...... 30 minutes ...... 5 233.7ÐFalse proceed signal failures report ...... 620 224 ...... 15 minutes ...... 56 233.9Ð5-year signal system report ...... 260 52 ...... 30 minutes ...... 26 235.5ÐBlock signal applications ...... 82 111 ...... 10 hours ...... 1,110 235.8ÐApplications for relief ...... 82 24 ...... 2.5 hours ...... 60 235.20ÐProtest letters ...... 84 84 ...... 30 minutes ...... 42 236.110ÐRecordkeeping ...... 82 1,965,464 records ...... 2177 hour ...... 427,881 236.587ÐDeparture tests ...... 18 730,000 tests ...... 4 minutes ...... 48,667 236.590ÐPneumatic valves ...... 18 6,697 locomotives ...... 22.5 minutes ...... 2,511

Total Estimated Burden Hours: vulnerable to being struck by moving days. Operators of remotely controlled 480,358 hours. cars as they inspect or service switches use the information as a record Status: Reinstatement of a previously equipment on a particular track or, documenting blue signal protection of approved collection of information alternatively, occupy camp cars. FRA workers or camp cars. This record also which has expired. believes that production of notification serves as a valuable resource for railroad Title: Remotely Controlled Railroad requests promotes safety by minimizing supervisors and FRA inspectors Switch Operations Log. mental lapses of workers who are monitoring regulatory compliance. OMB Control Number: 2130–0516. simultaneously handling several tasks. Form Number(s): N/A. Abstract: Title 49, section 218.30 of Sections 218.30 and 218.67 require the Affected Public: Businesses. the Code of Federal Regulations ensures operator of remotely controlled switches Frequency of Submission: On that remotely controlled switches are to maintain a record of each notification occasion; recordkeeping. lined to protect workers who are requesting blue signal protection for 15 Reporting Burden:

Average Total re- time per re- Total bur- CFR Respondent universe sponses sponse den hours (minutes)

Blue signal protection ...... 400 RRs ...... 3,600,000 4 240,000 records Camp cars ...... 620 RRs ...... 4,500 4 300 records

Total Estimated Burden Hours: Abstract: Title 49, part 232 of the conducted notify the road crew of the 240,300 hours. Code of Federal Regulations requires train that the test was satisfactorily Status: Reinstatement of a previously that an initial terminal air brake test be performed. Under Section 232.12(a)(2), approved collection of information made by a person designated as FRA requires that the notice be made in which has expired. qualified by the inspecting railroad. It writing to the road crew if (i) the Title: Railroad Power Brakes and also requires that a qualified person qualified person goes off duty before the Drawbars. participating in the test or a person road crew reports or (ii) the train that OMB Control Number: 2130–0008. having knowledge that the test was has been inspected is to be moved in Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63921 excess of 500 miles without being apply and release. For tests required by the calibration on a tag, sticker, or other subjected to another test pursuant to Section 232.13(b)–(d), FRA now permits method of information storage affixed to either this section or Section 232.13. railroads to employ end-of-train the rear unit. The label is necessary to The rule also requires that an telemetry devices to determine the determine whether the end-of-train intermediate train air brake test be made status of the train brake pipe at the rear device has been tested within the time to determine that the basic integrity of of the train and transmit that prescribed. Crew members use the the train air line has not been disturbed information to the lead locomotive. information to verify that the initial by an incident encountered en route, Specifically, Section 232.19(h)(3) terminal air brake test was satisfactorily such as picking up or setting out cars at requires that railroads using this device performed by a qualified person. which time a train’s air line could have must calibrate it for accuracy at least Form Number(s): N/A. been disconnected and reconnected every 92 days and record the date of the several times. To ensure continuity of last calibration, identify the location Affected Public: Businesses. the train brake pipe, railroads must where the calibration was made, and Frequency of Submission: On determine that the brakes on the rear car provide the name of the person doing occasion; recordkeeping.

Reporting Burden:

Average time per re- Total bur- CFR Respondent universe Total responses sponse den hours (seconds)

Written notification by departing qualified persons ...... 30 RRs ...... 60,000 notifications ...... 15 250 Written notification in excess of 500 miles before re- 620 RRs ...... 380,000 notifications ...... 15 1,500 ceiving another test. Testing and stenciling of telemetry devices ...... 620 RRs ...... 20,000 tests ...... 10 56

Total Estimated Burden Hours: 1,806 6180.71) is used to provide data on new characteristics of a grade crossing. Many hours. highway-rail grade crossings (grade public and private entities use the data Status: Reinstatement of a previously crossings) or changes to the Highway- provided on the Inventory form for approved collection of information Rail Grade Crossing Inventory program assessment and research. which has expired. (Inventory) form. The form is used for T3Form Number(s): FRA Form Title: U.S. DOT–AAR Crossing reporting all types of changes, especially 6180.71. Inventory Form. the establishment of a new grade OMB Control Number: 2130–0017. Affected Public: Businesses. Abstract: The U.S. DOT–AAR crossing, closing of an existing grade Frequency of Submission: On Crossing Inventory Form (FRA F crossing, or changes in the occasion.

Reporting Burden:

Average time per re- Total bur- Voluntary compliance Respondent universe Total responses sponse den hours (minutes)

U.S. DOT±AAR crossing inventory form (FRA F 620 RRs ...... 10,213 forms ...... 15 2,553 6180.71). Mass update form and inventory computer printout ...... 620 RRs ...... 250 lists ...... 30 125 Magnetic tape ...... 620 RRs ...... 16 ...... 30 8 GX computer program ...... 620 RRs ...... 58,680 updates ...... 2 1,956

Total Estimated Burden Hours: 4,642 to monitor the safety of train operations. repairs, and the type of repairs made. hours. Event recorders provide FRA with This information provides a locomotive Status: Reinstatement of a previously information about how trains are engineer with information that the approved collection of information operated and, if a train is involved in an locomotive has been inspected and is in which has expired. accident, the devices afford data to FRA proper condition for use in service, and Title: Railroad Locomotive Safety and other investigators necessary to enables FRA to monitor compliance Standards. determine the probable causes of the with the regulatory standards. Other OMB Control Number: 2130–0004. accident. information collection requirements in Abstract: Under regulations issued Under 49 CFR Part 229, railroads are Part 229 are indicated in the chart pursuant to Congressional mandate, 49 required to conduct daily, periodic, below. U.S.C. 20137, trains must be equipped annual, and biennial tests of Form Number(s): FRA Form with event recorders. Event recorders locomotives to measure the level of 6180.49A. are devices that record train speed, hot compliance with the Federal box detection, throttle position, brake regulations. The collection of Affected Public: Businesses. application, brake operations, time and information requires railroads to Frequency of Submission: On signal indications, and any other prepare written records indicating the occasion; annually, biennially, function that FRA considers necessary repairs needed, the person making the recordkeeping. 63922 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Reporting Burden:

Average time per re- CFR section Respondent universe Total responses sponse Total burden hours

229.9ÐMovement of noncomplying loco- 620 RRs ...... 21,000 tags ...... 1 minute ...... 350 motive. 229.17ÐAccident reports ...... 620 RRs ...... 20 reports ...... 15 minutes ...... 5 229.21ÐDaily inspection ...... 620 RRs ...... 5,460,000 inspections 3 minutes ...... 273,000 229.113ÐSteam generator warning notice .... 1 RR ...... 1 notice ...... 1 minute ...... 1 minute FRA form F 6180.49A ...... 620 RRs ...... 21,000 forms ...... 2 minutes ...... 700 210.31ÐLocomotive noise emission test ...... 620 RRS ...... 100 tests ...... 15 minutes ...... 25 229.23ÐPeriodic inspection, ...... 620 RRs ...... 84,000 tests ...... 10 hours ...... 840,000 229.27, 229.29ÐAnnual and biennial tests ...... 229.31ÐMain reservoir tests ...... 229.33ÐOut-of-use credit ...... 620 RRs ...... 2,400 out-of-use cred- 2 minutes ...... 80 its. Written copy of instructions ...... 620 RRs ...... 200 amendments ...... 15 minutes ...... 50 Data verification readout record ...... 620 RRs ...... 72,000 tests ...... 30 minutes ...... 36,000 Written record when an event recorder is re- 620 RRs ...... 6,000 removals ...... 1 minute ...... 100 moved from service. Record of event recorder data ...... 620 RRs ...... 100 accidents ...... 15 minutes ...... 25

Total Estimated Burden Hours: effectiveness if the system is not system failures and investigate them to 1,150,350. repaired within a reasonable period of determine whether periodic Status: Reinstatement of a previously time. A greater risk of an accident is maintenance, inspection, and testing approved collection of information present when a warning system fails to standards are effective. FRA also uses which has expired. activate as a train approaches a grade the information collected to alert Title: Grade Crossing Signal System crossing. FRA’s regulations require railroad employees and appropriate Safety Regulations. railroads to take specific responses in highway traffic authorities of warning OMB Control Number: 2130–0534. the event of an activation failure. FRA system malfunctions and take necessary Abstract: FRA believes that highway- uses the information to develop better measures to protect motorists and rail grade crossing (grade crossing) solutions to the problems of grade railroad employees at the grade crossing accidents resulting from warning system crossing device malfunctions. With this until repairs have been made. failures can be reduced. Motorists lose information, FRA is able to correlate Form Number(s): FRA Form 6180.83. faith in warning systems that constantly accident data and equipment warn of an oncoming train when none malfunctions with the types of circuits Affected Public: Businesses. is present. Therefore, the fail-safe and age of equipment. FRA can then Frequency of Submission: On feature of a warning system loses its identify the causes of grade crossing occasion; recordkeeping.

Reporting Burden:

Average Total re- time per re- Total bur- CFR section Respondent universe sponses sponse den hours (minutes)

234.7ÐTelephone notification ...... 605 RRs ...... 4 15 1 234.9ÐGrade crossing signal system failure reports ...... 620 RRS ...... 400 15 100 Notification to train crew and highway traffic control authority ...... 620 RRs ...... 400 15 100 Recordkeeping ...... 620 RRs ...... 400 15 100

Total Estimated Burden Hours: 301 Total Responses: 300 annual used to prevent accidents by screening hours. responses. personnel who perform safety-sensitive Status: Regular Review. Average Time Per Response: 5 hours. service. FRA uses the information to Title: Railroad Police Officers. Total Annual Burden Hours: 1,500 measure the level of compliance with OMB Control Number: 2130–0537. hours. regulations governing the use of alcohol Abstract: Under 49 CFR Part 207, Status: Regular Review. or controlled substances. Elimination of railroads are required to notify states of Title: Control of Alcohol and Drug this problem is necessary to prevent all designated railroad police officers Use in Railroad Operations. accidents, injuries, and fatalities of the who are discharging their duties outside OMB Control Number: 2130–0526. nature already experienced and further of their respective jurisdictions. This Abstract: The information collection reduce the risk of a truly catastrophic requirement is necessary to verify requirements contained in pre- accident. Lastly, FRA analyzes the data proper police authority. employment and ‘‘for cause’’ testing provided in the Management Form Number(s): N/A. regulations are intended to ensure a Information System annual report to Affected Public: Businesses. sense of fairness and accuracy for monitor the effectiveness of a railroad’s Respondent Universe: 30 railroads. railroads and their employees. The alcohol and drug testing program. Frequency of Submission: principal information—evidence of Form Number(s): FRA F 6180.73, Recordkeeping. unauthorized alcohol or drug use—is 6180.74, 6180.94A, 6180.94B. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63923

Affected Public: Businesses. Frequency of Submission: On occasion; annually, recordkeeping.

Reporting Burden:

Average time per re- Total bur- CFR section Respondent universe Total responses sponse den hours

219.7 ...... 620 RRs ...... 2 waivers ...... 2 hours ...... 4 219.9(b)(2) ...... 620 RRs ...... 25 times ...... 4 hours ...... 100 219.11(b)(2) ...... 200 medical facilities .... 1 ...... 15 minutes ...... 25 219.11(g), 219.301(c)(2)(ii) ...... 620 RRs ...... 250 classes ...... 3 hours ...... 750 Notice of educational material available to em- 15 new RRs ...... 15 notices ...... 1 hour ...... 15 ployees. 219.104, 219.107, 40.67 ...... 20 employees ...... 20 letters ...... 1 hour ...... 20 219.201(c) ...... 200 RRs ...... 10 reports ...... 30 minutes ...... 5 219.203/207/209 ...... 200 RRs ...... 104 calls ...... 10 minutes ...... 17 219.205 ...... 200 RRs ...... 400 tests ...... 15 minutes ...... 100 219.205ÐForm 6180.73 ...... 200 RRS ...... 100 forms ...... 10 minutes ...... 17 219.209(c) ...... 200 RRs ...... 40 records ...... 30 minutes ...... 20 219.211(b) ...... 200 MROs ...... 8 reports ...... 15 minutes ...... 2 219.211(e) ...... 400 employees ...... 1 response ...... 1 hour ...... 1 219.211(h) ...... 200 RRs ...... 400 records ...... 30 minutes ...... 200 219.211(i) ...... 400 employees ...... 1 letter ...... 1 hour ...... 1 219.213(b) ...... 200 RRs ...... 4 notices ...... 30 minutes ...... 2 219.302(f) ...... 200 RRs ...... 200 records ...... 30 minutes ...... 100 219.401/403/405 ...... 5 RRs ...... 5 policies ...... 40 hours ...... 200 219.405(c)(1) ...... 200 RRs ...... 200 reports ...... 5 minutes ...... 17 219.407 ...... 200 RRs ...... 1 policy ...... 2 hours ...... 2 ...... 1 amend...... 1 hour ...... 1 219.403/405 ...... 200 SAPs ...... 2,000 reports ...... 10 minutes ...... 333 219.601(a) ...... 5 RRs ...... 5 programs ...... 80 hours ...... 400 219.601(a) ...... 200 RRs ...... 5 amend...... 5 hours ...... 25 219.601(b)(4)/601.(d) ...... 200 RRs ...... 4,000 notices ...... 5 min...... 33 5 RRs ...... 5 notices ...... 10 hours ...... 50 200 RRs ...... 40,000 notices ...... 5 minutes ...... 3,333 219.601(b)(1) ...... 200 RRs ...... 200 docs...... 8 hours per month ...... 19,200 219.603(a) ...... 40,000 employees ...... 400 docs...... 15 minutes ...... 100 219.607 ...... 5 RRs ...... 5 programs ...... 80 hours ...... 400 200 RRs ...... 5 amend...... 5 hours ...... 25 219.607(b)(1) ...... 200 RRs ...... 200 documents ...... 8 hours per month ...... 19,200 219.607(c)(1) ...... 200 RRs ...... 4,000 notices ...... 5 minutes ...... 33 5 RRs ...... 5 Notices ...... 10 hours ...... 50 219.609 ...... 20,000 employees ...... 200 requests ...... 15 minutes ...... 50 219.703(a), 40.23 ...... 200 RRs ...... 52,920 forms ...... 15 minutes ...... 13,230 219.705(c) ...... 200 RRs ...... 2 requests ...... 10 hours ...... 20 219.707(c)(d), 40.33ÐPositive test ...... 200 MROs ...... 980 tests ...... 2 hours ...... 1,960 200 RRs ...... 980 notifications ...... 15 minutes ...... 245 219.707(c)(d), 40.33ÐNegative test ...... 200 MROs ...... 48,020 letters ...... 20 minutes ...... 16,007 219.709 ...... 200 RRs ...... 10 letters ...... 30 minutes ...... 5 980 employees ...... 219.711(c), 40.25(f)(22)(ii) ...... 60 employees ...... 60 letters ...... 5 minutes ...... 5 51,450 employees ...... 12,893 forms ...... 5 minutes ...... 1,072 219.715, 40.57/59/61 ...... 80,000 employees ...... 20,000 tests ...... 15 minutes ...... 5,000 40.59(c) ...... 200 RRs ...... 500 entries ...... 2 minutes ...... 17 40.65 ...... 200 BATs ...... 20 tests ...... 30 minutes ...... 10 200 RRs ...... 200 notices ...... 1 hour ...... 200 200 RRs ...... 20 confirm. tests ...... 15 minutes ...... 5 40.69 ...... 200 RRs ...... 10 cases ...... 12 minutes ...... 2 200 RRs ...... 1 case ...... 1 hour ...... 1 1 physician ...... 1 response ...... 1 hour ...... 1 40.81 ...... 200 RRs ...... 60 letters ...... 5 minutes ...... 5 20 employees ...... 4 letters ...... 30 minutes ...... 2 40.83 ...... 200 RRs ...... 138,100 records ...... 5 minutes ...... 11,508 219.801 ...... 60 RRs ...... 40 forms ...... 8 hours ...... 320 60 RRs ...... 20 forms ...... 4 hours ...... 80 219.803 ...... 60 RRs ...... 40 forms ...... 65 hours ...... 2,600 60 RRs ...... 20 forms ...... 25 hours ...... 500 219.901 ...... 200 RRs ...... 100,500 records ...... 5 minutes ...... 8,375 200 RRs ...... 200 summaries ...... 2 hours ...... 400 40.23(d)(2)(ii) ...... 5 RRs ...... 5 written instruct...... 40 hours ...... 200 40.29(a)(2) & (b) ...... 25 lab...... 58,212 forms ...... 15 minutes ...... 14,553 40.31(c)(1) ...... 25 lab...... 1,176 certifications ...... 1 minute ...... 20 40.29(g)(1) & (5) ...... 25 lab...... 52,920 reports ...... 30 minutes ...... 26,460 40.29(g)(6) ...... 25 lab...... 200 reports ...... 2 hours per month ...... 4,800 40.29(g)(8) & (m) ...... 25 lab...... 25 records ...... 240 hours ...... 6,000 63924 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

Average time per re- Total bur- CFR section Respondent universe Total responses sponse den hours

40.31(d)(6) ...... 25 lab...... 2 reports ...... 10 hours ...... 20 40.31(d)(7) & (8) ...... 25 lab...... 1 notification ...... 50 hours ...... 50 25 lab...... 1 statement ...... 50 hours ...... 50 40.33 ...... 200 MROs ...... 18 letters ...... 30 minutes ...... 9 200 MROs ...... 2 letters ...... 30 minutes ...... 1 40.37 ...... 30 employees ...... 30 requests ...... 30 minutes ...... 15

Total Estimated Burden Hours: 49 CFR Part 230. Railroads use the determine possible causes, and consider 158,554.25 hours. information to ensure that steam waiver petitions. Status: Regular Review. locomotives are safe for use in service. Form Number(s): Form 1, Form 3, Title: Steam Locomotive Inspection. Further, FRA’s Office of Safety Form 4, and Form 19. OMB Control Number: 2130–0505. Assurance and Compliance uses the Abstract: The specific sections Affected Public: Businesses. information to monitor regulatory describing the reporting, testing, and Frequency of Submission: On compliance, investigate accidents to recordkeeping requirements are found at occasion; recordkeeping.

Reporting Burden:

Respondent Total bur- CFR section universe Total responses Average time per response den hours

230.10 ...... 48 26 waivers ...... 1 hour ...... 26 230.51ÐForm 1 ...... 48 968 reports ...... 5 minutes ...... 81 230.53ÐForm 3 ...... 48 880 reports ...... 7 minutes ...... 10 230.54ÐForm 4 ...... 48 1 report ...... 1 hour ...... 1 230.54ÐForm 19 ...... 48 1 report ...... 30 minutes ...... 5 230.32ÐBadge plate ...... 48 1 plate ...... 30 minutes ...... 5 230.45ÐBoiler number ...... 48 1 number ...... 15 minutes ...... 25 230.48ÐOffice recordÐboiler washing ...... 48 243 records ...... 1 minute ...... 4 230.52ÐPosting of copy ...... 48 1,056 forms ...... 1 minute ...... 18 230.104ÐLocomotive inspection report ...... 48 7,290 reports ...... 3 minutes ...... 365 230.111ÐStenciling dates of tests and cleaning ...... 48 108 tests ...... 1 minute ...... 2 230.127(b)ÐPistons and piston rods ...... 48 1 stamp ...... 15 minutes ...... 25 230.133ÐDriving, trailing and engine truck axles ...... 48 1 stamp ...... 15 minutes ...... 25 230.136ÐCrank pins ...... 48 1 stamp ...... 15 minutes ...... 25 230.158ÐModification of rules ...... 48 2 requests ...... 1 hour ...... 2

Total Estimated Burden Hours: 511 Average Time Per Response: 5 Maritime Administration hours. minutes per tag. Status: Regular Review. Estimated Total Annual Burden [Docket No. M±027] Title: Identification of Cars Moved in Hours: 110 hours. Accordance with Order 13528. Information Collection Available for OMB Control Number: 2130–0506. Status: Regular Review. Public Comments and Abstract: This collection of Pursuant to 44 U.S.C. 3507(a) and 5 Recommendations information identifies a freight car being CFR 1320.5(b), 1320.8(b)(3)(vi), FRA moved within the scope of Order 13528 ACTION: Notice and request for informs all interested parties that it may comments. (order). See 49 CFR Part 232, Appendix not conduct or sponsor, and a B. Otherwise, an exception will be respondent is not required to respond SUMMARY: In accordance with the taken, and the car will be set out of the to, a collection of information unless it Paperwork Reduction Act of 1995, this train and not delivered. The information displays a currently valid OMB control notice announces the Maritime that must be recorded is specified at 49 number. Administration’s (MARAD’s) intentions CFR Part 232, Appendix B, requiring to request extension of approval for that a car be properly identified by a Authority: 44 U.S.C. 3501–3520. three years of a currently approved card attached to each side of the car and Issued in Washington, D.C. on November information collection. signed stating that such movement is 26, 1996. DATES: Comments should be submitted being made under the authority of the MaryAnn Johnson, order. The order does not require on or before January 31, 1997. Acting Director, Office of Information retaining cards or tags. When a car FOR FURTHER INFORMATION CONTACT: Technology and Productivity Improvement, Daniel Seidman, Division of Production, bearing a tag for movement under the Federal Railroad Administration. order arrives at its destination, the tags Office of Ship Construction, Maritime [FR Doc. 96–30628 Filed 11–29–96; 8:45 am] are simply removed. Administration, MAR–720, Room 2103, Form Number(s): None. BILLING CODE 4910±06±P 400 Seventh Street, S.W., Washington, Affected Public: Businesses. D.C. 20590. Telephone 202–366–1888 or Frequency of Submission: On fax 202–366–3954. Copies of this occasion. collection can also be obtained from that Total Responses: 1,320 tags. office. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63925

SUPPLEMENTARY INFORMATION: In accordance with 46 CFR 249.7(b) By the Board, David M. Konschnik, Director, Office of Proceedings. Title of Collection: Shipbuilding interested persons are hereby afforded Vernon A. Williams, Orderbook and Shipyard Employment. an opportunity to bring to MARAD’s Type of Request: Extension of attention any discriminatory laws or Secretary. currently approved information practices relating to the placement of [FR Doc. 96–30599 Filed 11–29–96; 8:45 am] collection. marine hull insurance which may exist BILLING CODE 4915±00±P OMB Control Number: 2133–0029. in the applicant’s country of domicile. Responses to this notice must be sent Form Number: MA–832. [STB Finance Docket No. 33297] Expiration Date of Approval: April 30, to the Secretary, Maritime 1997. Administration, Room 7210, Nittany & Bald Eagle Railroad Summary of Collection of Department of Transportation, 400 CompanyÐOperation ExemptionÐ Information: The collection consists of Seventh Street, S.W., Washington, D.C. Lines of SEDA±COG Joint Rail form MA–832 to gather information, 20590, and must be received by close of Authority including shipyard orderbook and business on December 16, 1996. Nittany & Bald Eagle Railroad shipyard employment of production Dated: November 25, 1996. Company (N&BE), a Class III rail workers distributed by various Joel C. Richard, categories of work in the shipyards by common carrier, has filed a notice of Secretary, Maritime Administration. exemption to operate 6.8 miles of lines calendar year and quarter as well as [FR Doc. 96–30646 Filed 11–29–96; 8:45 am] projections for firm work in the same owned by the SEDA–COG Joint Rail BILLING CODE 4910±AK±P categories. Also included is information Authority (Authority): (1) Between on schedule of current orderbook Tyrone (M.P 0.0) and Vail (M.P. 3.0), in Blair County, PA; (2) between Mill Hall construction dates providing details by Surface Transportation Board ship type. (M.P. 51.5) and Lock Haven (M.P. 54.3), Need and Use of the Information: The in Clinton County, PA. In addition, [STB Finance Docket No. 33292] collected information is necessary to N&BE will operate Authority’s Mill Hall perform the reviews required by Industrial Track from milepost 13, in Kansas Eastern Railroad, Inc.Ð Castenea, PA, to milepost 14, in Mill sections 210 and 211 of the Merchant Acquisition ExemptionÐBurlington Marine Act, 1936, as amended. Hall, PA. Northern Railroad Company The earliest the transaction could be Description of Respondents: U.S. consummated was November 19, 1996, shipyards which agree to complete the Kansas Eastern Railroad, Inc. (KER), a the effective date of the exemption (7 information collection and return it to noncarrier, has filed a verified notice of days after the exemption was filed). the Maritime Administration. exemption under 49 CFR 1150.31 to This notice is filed under 49 CFR Annual Responses: 200. acquire 139.3 miles of rail line from the 1150.41. If the notice contains false or Annual Burden: 100 hours. Burlington Northern Railroad Company misleading information, the exemption Comments: Send all comments between milepost 483.0 east of Augusta, is void ab initio. Petitions to revoke the regarding this information collection to KS, and milepost 343.7 west of exemption under 49 U.S.C. 10502(d) Joel C. Richard, Department of Columbus, KS. may be filed at any time. The filing of Transportation, Maritime The transaction was expected to be a petition to revoke will not stay the Administration, MAR–120, Room 7210, consummated on November 15, 1996. transaction. 400 Seventh Street, S.W., Washington, This transaction is related to STB An original and 10 copies of all D.C. 20590. Send comments regarding Finance Docket No. 33293, South pleadings, referring to STB Finance whether this information collection is Kansas and Oklahoma Railroad, Inc.— Docket No. 33297, must be filed with necessary for proper performance of the Trackage Rights Exemption—Kansas the Surface Transportation Board, Office function of the agency and will have Eastern Railroad, Inc., wherein KER will of the Secretary, Case Control Branch, practical utility, accuracy of the burden enter into a trackage rights agreement 1201 Constitution Avenue, N.W., estimates, ways to minimize this with South Kansas and Oklahoma Washington, DC 20423. In addition, a burden, and ways to enhance quality, Railroad, Inc. for the operation of the copy of each pleading must be served utility, and clarity of the information to line being acquired by KER. on: Richard R. Wilson, Esq., Vuono & be collected. If the notice contains false or Gray, 2310 Grant Building, Pittsburgh, By order of the Maritime Administrator. misleading information, the exemption PA 15219. Telephone: (412) 471–1800. Dated: November 25, 1996. is void ab initio. Petitions to revoke the Decided: November 21, 1996. Joel C. Richard, exemption under 49 U.S.C. 10502(d) By the Board, David M. Konschnik, Secretary. may be filed at any time. The filing of Director, Office of Proceedings. [FR Doc. 96–30647 Filed 11–29–96; 8:45 am] a petition to revoke will not Vernon A. Williams, automatically stay the transaction. BILLING CODE 4910±81±P Secretary. An original and 10 copies of all [FR Doc. 96–30597 Filed 11–29–96; 8:45 am] pleadings, referring to STB Finance BILLING CODE 4915±00±P Application of Foreign Underwriters To Docket No. 33292, must be filed with Write Marine Hull Insurance the Surface Transportation Board, Office of the Secretary, Case Control Branch, [STB Finance Docket No. 33284] [Docket No. M±026] 1201 Constitution Avenue, N.W., SEDA±COG Joint Rail AuthorityÐ The Maritime Administration Washington, DC 20423. In addition, a copy of each pleading must be served Acquisition ExemptionÐLines of (MARAD) has received an application Consolidated Rail Corporation under 46 CFR Part 249 from Ace on: Karl Morell, Esq., Ball Janik LLP, Limited, a Bermuda based underwriter, Suite 225, 1455 F Street, N.W., SEDA–COG Joint Rail Authority to write marine hull insurance on Washington, D.C. 20005 (Authority), a rail common carrier, has subsidized and Title XI program vessels. Decided: November 21, 1996. filed a notice of exemption under 49 63926 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices

CFR 1150.41 to acquire approximately consummation of the transaction in STB DATES: Written comments should be 6.8 route miles of rail lines of Finance Docket No. 33292. received on or before January 31, 1997 Consolidated Rail Corporation: (1) Under 49 U.S.C. 10502(g), the Board to be assured of consideration. Between Tyrone (M.P 0.0) and Vail may not use its exemption authority to ADDRESSES: Direct all written comments (M.P. 3.0), in Blair County, PA; (2) relieve a rail carrier of its statutory to Garrick R. Shear, Internal Revenue between Mill Hall (M.P. 51.5) and Lock obligation to protect the interests of its Service, room 5571, 1111 Constitution Haven (M.P. 54.3), in Clinton County, employees. Section 11326(c), however, Avenue NW., Washington, DC 20224. PA. In addition, Authority will acquire does not provide for labor protection for FOR FURTHER INFORMATION CONTACT: the Mill Hall Industrial Track from transactions under sections 11324 and Requests for additional information or milepost 13, in Castenea, PA, to 11325 that involve only Class III rail copies of the form(s) and instructions 1 milepost 14, in Mill Hall, PA. carriers. Because this transaction should be directed to Martha R. Brinson, The transaction was expected to be involves Class III rail carriers only, the (202) 622–3869, Internal Revenue consummated on or about November 6, Board, under the statute, may not Service, T:FP, room 5571, 1111 1996. impose labor protective conditions for Constitution Avenue NW., Washington, If the notice contains false or this transaction. DC 20224. misleading information, the exemption This notice is filed under 49 CFR is void ab initio. Petitions to revoke the 1180.2(d)(7). If the notice contains false SUPPLEMENTARY INFORMATION: exemption under 49 U.S.C. 10502(d) or misleading information, the Title: Foreign Tax Credit— may be filed at any time. The filing of exemption is void ab initio. Petitions to Corporations. a petition to revoke will not stay the revoke the exemption under 49 U.S.C. OMB Number: 1545–0122. transaction. 10502(d) may be filed at any time. The Form Number: 1118. An original and 10 copies of all filing of a petition to revoke will not Abstract: Form 1118 and separate pleadings, referring to STB Finance automatically stay the transaction. Schedules I and J are used by domestic Docket No. 33284, must be filed with An original and 10 copies of all and foreign corporations to claim a the Surface Transportation Board, Office pleadings, referring to STB Finance credit against tax for taxes paid to of the Secretary, Case Control Branch, Docket No. 33293, must be filed with foreign countries. The IRS uses Form 1201 Constitution Avenue, N.W., the Surface Transportation Board, Office 1118 and related schedules to determine Washington, DC 20423. In addition, a of the Secretary, Case Control Branch, if the corporation has computed the copy of each pleading must be served 1201 Constitution Avenue, N.W., foreign tax credit correctly. on: Steven S. Hurvitz, Esq., McQuaide, Washington, DC 20423. In addition, a Current Actions: There are no changes Blasko, Schwartz, Fleming & Faulkner, copy of each pleading must be served being made to the form at this time. Inc., 811 University Drive, State College, on: Karl Morell, Esq., Ball Janik LLP, Type of Review: Extension of a PA 16801. Suite 225, 1455 F Street, N.W., currently approved collection. Decided: November 21, 1996. Washington, D.C. 20005. Affected Public: Businesses or other By the Board, David M. Konschnik, Decided: November 21, 1996. for-profit organizations. Director, Office of Proceedings. By the Board, David M. Konschnik, Estimated Number of Respondents: Vernon A. Williams, Director, Office of Proceedings. 10,000. Secretary. Vernon A. Williams, Estimated Time Per Respondent: 339 [FR Doc. 96–30600 Filed 11–29–96; 8:45 am] Secretary. hr., 44 min. Estimated Total Annual Burden BILLING CODE 4915±00±P [FR Doc. 96–30598 Filed 11–29–96; 8:45 am] Hours: 3,397,363. BILLING CODE 4915±00±P The following paragraph applies to all [STB Finance Docket No. 33293] of the collections of information covered by this notice: South Kansas and Oklahoma Railroad, DEPARTMENT OF THE TREASURY An agency may not conduct or Inc.ÐTrackage Rights ExemptionÐ sponsor, and a person is not required to Kansas Eastern Railroad, Inc. Internal Revenue Service respond to, a collection of information Kansas Eastern Railroad, Inc.1 (KER), unless the collection of information Proposed Collection; Comment displays a valid OMB control number. a Class III rail carrier, will agree to grant Request for Form 1118 local trackage rights to South Kansas Books or records relating to a collection and Oklahoma Railroad, a Class III rail AGENCY: Internal Revenue Service (IRS), of information must be retained as long carrier, over its rail line between Treasury. as their contents may become material in the administration of any internal milepost 483.9, east of Augusta, KS, and ACTION: Notice and request for revenue law. Generally, tax returns and milepost 343.7, west of Columbus, KS, comments. a distance of 139.3 miles. tax return information are confidential, The transaction is scheduled to SUMMARY: The Department of the as required by 26 U.S.C. 6103. become effective immediately upon the Treasury, as part of its continuing effort REQUEST FOR COMMENTS: Comments to reduce paperwork and respondent submitted in response to this notice will 1 Authority has indicated that Nittany & Bald burden, invites the general public and be summarized and/or included in the Eagle Railroad Company (N&BE), a Class III railroad other Federal agencies to take this request for OMB approval. All common carrier will be the operator of the lines. opportunity to comment on proposed comments will become a matter of N&BE has filed a notice of exemption in Nittany & Bald Eagle Railroad Company—Operation and/or continuing information public record. Comments are invited on: Exemption—Rail Lines of SEDA–COG Joint Rail collections, as required by the (a) Whether the collection of Authority, STB Finance Docket No. 33297, to Paperwork Reduction Act of 1995, information is necessary for the proper operate the lines. Public Law 104–13 (44 U.S.C. performance of the functions of the 1 See Kansas Eastern Railroad, Inc.—Acquisition Exemption—Burlington Northern Railroad 3506(c)(2)(A)). Currently, the IRS is agency, including whether the Company, STB Finance Docket No. 33292 (STB soliciting comments concerning Form information shall have practical utility; served Dec. 2, 1996). 1118, Foreign Tax Credit—Corporations. (b) the accuracy of the agency’s estimate Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notices 63927 of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Approved: November 22, 1996. Garrick R. Shear, IRS Reports Clearance Officer. [FR Doc. 96–30618 Filed 11–29–96; 8:45 am] BILLING CODE 4830±01±U 63928

Corrections Federal Register Vol. 61, No. 232

Monday, December 2, 1996

This section of the FEDERAL REGISTER November 22, 1996, make the following 2. On the same page, in the third contains editorial corrections of previously correction: column, in the Docket numbers, in the published Presidential, Rule, Proposed Rule, On page 59762, in the first column, in third line, ‘‘96-108-005’’ should read and Notice documents. These corrections are ‘‘ER96-108-005’’. prepared by the Office of the Federal the DATES section, in the second and Register. Agency prepared corrections are sixth lines, ‘‘December 26, 1996’’ should BILLING CODE 1505±01±D issued as signed documents and appear in read ‘‘December 23, 1996’’. the appropriate document categories BILLING CODE 1505±01±D elsewhere in the issue. ENVIROMENTAL PROTECTION AGENCY DEPARTMENT OF ENERGY 40 CFR Part 70 DEPARTMENT OF AGRICULTURE Federal Energy Regulatory Rural Housing Service Commission [NY001; FRL-5646-7] Rural Business-Cooperative Service [Docket No. EG96-96-000, et al.] Clean Air Act Final Interim Approval of Operating Permits Program; New York Rural Utilities Service Termovalla S.C.A., et al.; Electric Rate Correction Farm Service Agency and Corporate Regulation Filings In rule document 96–28539, Correction 7 CFR Parts 1806, 1910, 1922, 1944, beginning on page 57589, in the issue of 1951, 1955, 1956, 1965, and 3550 In notice document 96–29654 Thursday, November 7, 1996, make the Reengineering and Reinvention of the beginning on page 59092 in the issue of following correction: Direct Section 502 and 504 Single Wednesday, November 20, 1996, make Appendix A to Part 70 [Corrected] Family Housing (SFH) Programs the following corrections: 1. On page 59093, in the second On page 57594, in the first column, in Correction column, in the Docket numbers, in the paragraph (a), in the sixth line, ‘‘May 7, In rule document 96–29777 beginning second and third line, ‘‘ER95-12-69- 1999’’ should read ‘‘December 9, 1996’’. on page 59762 in the issue of Friday, 004’’ should read ‘‘ER95-1269-004’’. BILLING CODE 1505±01±D federal register December 2,1996 Monday Program (SEMAP);ProposedRule Programs andManagementAssessment Section 8RentalVoucherandCertificate 24 CFRPart985 Development Housing andUrban Department of Part II 63929 63930 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules

DEPARTMENT OF HOUSING AND HA performance in administering the chosen first and foremost to ensure that URBAN DEVELOPMENT Section 8 tenant-based assistance the Section 8 programs consistently programs, and to identify HA operate to meet the intended result of 24 CFR Part 985 management capabilities and helping eligible families afford decent deficiencies using criteria that are key to rental units at a reasonable subsidy cost [Docket No. FR±3986±P±01] effective program administration. This (i.e., to assist ‘‘the right families in the RIN 2577±AB60 proposed rule does not apply to Indian right units at the right cost’’). In housing authority (IHA) administration addition, certain indicators measure Section 8 Rental Voucher and of these programs. Performance of IHA whether rental assistance is delivered Certificate Programs Section 8 administration of the Section 8 effectively (e.g., time from request for Management Assessment Program programs is assessed using the HUD lease approval to HQS inspection, lease- (SEMAP) Office of Native American Programs up, deconcentration) and whether the Risk Assessment and Determination for HA advances the critical goal of family AGENCY: Office of the Assistant Allocation of Resources (RADAR) self-sufficiency (FSS) (e.g., FSS Secretary for Public and Indian instrument. RADAR will incorporate the enrollment, welfare to work). Housing, HUD. SEMAP performance indicators. The The Department considered including ACTION: Proposed rule. proposed rule does not cover the an indicator which would show Section 8 moderate rehabilitation whether families admitted to the SUMMARY: This proposed rule would program; however, the Department program have incomes below the establish the Section 8 Management expects that in most cases an HA’s income limits, but all information HUD Assessment Program (SEMAP) to performance under the tenant-based has indicates that there are almost no objectively measure public housing programs will reflect its performance admissions of families with incomes agency (HA) performance in key Section under the moderate rehabilitation over the income limits. Adding this as 8 tenant-based assistance program areas. program as well. The proposed rule a SEMAP indicator would have very SEMAP would enable HUD to ensure provides procedures for addressing little useful purpose, since virtually all program integrity and accountability by problem areas and poor performance HAs are in full compliance with the identifying HA management capabilities through corrective action plans and requirement. The Department requires and deficiencies and by improving risk follow-up monitoring. 100 percent reporting of all income and assessment to effectively target At a time of diminishing HUD staffing rent determinations, and monitoring monitoring and program assistance. HAs resources, use of SEMAP will enable the income eligibility is built into the could use the SEMAP performance Department to improve its risk Multifamily Tenant Characteristics analysis to assess their own program assessment and to effectively target System (MTCS). MTCS is the operations. monitoring and program assistance to Department’s national data base on DATES: Comment due date: January 31, housing agencies that need most participants and rental units in the 1997. improvement and that pose the greatest Section 8 rental certificate, rental ADDRESSES: Interested persons are risk. voucher, and moderate rehabilitation invited to submit comments regarding The proposed rule describes 15 programs and in the Public and Indian this proposed rule to the Office of the performance indicators that will be used Housing programs. There is a SEMAP General Counsel, Rules Docket Clerk, to assess HA performance; the annual indicator on HA verification of family room 10276, Department of Housing and HA SEMAP certification and HUD income. Urban Development, 451 Seventh Street, review process; HUD scoring procedures The Department also considered SW, Washington, DC 20410–0500. and procedures for designating high, including indicators on financial Comments should refer to the above standard and troubled performers; and management, but concluded that docket number and title. Facsimile requirements for corrective action plans existing procedures for HUD review of (FAX) comments are not acceptable. A and strategies for improving budgets, requisitions and year-end copy of each communication submitted performance. financial statements and the annual will be available for public inspection While the Department plans to use independent audit already provide for and copying during regular business SEMAP as its fundamental means of sufficient HUD oversight of the financial hours (7:30 a.m. to 5:30 p.m. Eastern measuring HA Section 8 performance, management area. time) at the above address. SEMAP will be used in conjunction Remarks on Particular Indicators with independent auditor (IA) audit FOR FURTHER INFORMATION CONTACT: reports, fair housing and equal The ratings for the annual Gerald Benoit, Director, Operations opportunity compliance reviews, HUD reexaminations indicator and the annual Division, Office of Rental Assistance, reviews of financial documents, on-site HQS inspections indicator at §§ 985.3(d) Public and Indian Housing, Department reviews, housing quality standards and 985.3(i), indicate that annual of Housing and Urban Development, (HQS) reviews, participant complaints, reexaminations and HQS inspections Room 4220, 451 Seventh Street, SW, and other pertinent information to may not be more than 2 months Washington, DC 20410, telephone (202) assess ultimately an HA’s overall overdue. This 2 month allowance is 708–0477. Hearing or speech impaired performance under the Annual provided only to accommodate a individuals may call HUD’s TTY Contributions Contract (ACC). possible lag in the HA’s electronic number (202) 708–4594 or 1–800–877– reporting of the annual reexamination or 8399 (Federal Information Relay Service II. Discussion the annual HQS inspection on Form TTY). (Other than the ‘‘800’’ number, A. Performance Indicators HUD–50058, and to allow the these are not toll-free numbers.) processing of the data into the MTCS. Overview SUPPLEMENTARY INFORMATION: The Form HUD–50058 data are used to Section 985.3 lists 15 SEMAP measure performance under this I. Purpose performance indicators which are key to indicator. The 2 month allowance This proposed rule provides an effective and cost efficient program provided here for rating purposes does objective system for HUD to measure administration. The indicators were not mean that any delay in completing Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63931 annual reexaminations and HQS children are at least as dispersed standard that would encourage HAs to inspections is ever permitted. throughout the area as are the FMR- ensure that needy families do not spend The indicator at § 985.3(j) for HQS priced units, both within the HA’s area a disproportionate share of income quality control inspections shows of jurisdiction and within the entire toward rent. For example, the whether an HA supervisor or other metropolitan area. The Department does Department considered including a qualified person reinspects a random not intend that the SEMAP indicator for performance indicator that not more sample of at least 5 percent of deconcentration should cause any than 20 percent of rental voucher completed HQS inspections. A small metropolitan HA to directly or program participants pay more than 40 HA with only 1 or 2 employees may indirectly reduce a family’s opportunity percent of adjusted monthly income for arrange with a nearby HA to have a to select among available units. HUD rent. However, the Department qualified HQS inspector perform the intends that, by including the dispersal recognizes that there has never been any required quality control inspections. of Section 8 families with children articulated federal standard concerning The indicator at § 985.3(l), for lease- throughout metropolitan areas as a rent burden in the rental voucher up shows whether the HA executes measure of performance, HAs will be program, and that HAs have only assistance contracts on behalf of eligible encouraged to provide more outreach to limited control over a family’s choice to families for the number of units that has owners in all areas of their respective assume a greater rent burden than the been under budget for at least one year. jurisdictions and more counseling and traditional 30 percent of annual In the event that the Congress continues transportation assistance to motivate adjusted income. Also, 40th percentile hold-back requirements on turnover of and increase housing choice on the part FMRs, and potentially lower payment rental vouchers and certificates in future of families. standards, may place increased pressure fiscal years when SEMAP is on families to choose to pay more than Future Implementation of Welfare-to- implemented, HUD plans to waive the 40 percent of income for rent, Work Indicator SEMAP regulation concerning ratings particularly if the families want to under this indicator and to instead The welfare-to-work indicator at choose housing outside areas of low provide that the number of units under § 985.3(o) shows whether the HA helps income concentration. contract would be divided by the assisted families move from welfare to The Department is considering number of units budgeted for the last work by measuring the percent of adding, and requests comment on, a HA fiscal year reduced by a HUD- welfare families who move from welfare SEMAP indicator to measure an HA’s determined percentage of the number of to work during the course of a year. This performance in: (1) Analyzing computer units budgeted to determine the lease- indicator will be implemented in matching results that HUD supplies to up rate for rating purposes. SEMAP beginning in federal fiscal year HAs from the Department’s Tenant The ratings under the lease-up 1999, to allow HAs sufficient time to Eligibility Verification System (TEVS), indicator are based on the assumption build capacity and coordinate social and (2) taking appropriate that an HA uses all available annual services to achieve the performance administrative actions. Those actions contributions in determining the total objective. This means the welfare-to- will help ensure integrity in rental number of units budgeted. In the event work indicator will first be used for HAs assistance programs. TEVS processes the HUD State or Area Office (hereafter with an HA fiscal year end of September data from the computer matching of referred to as HUD Office) approves an 30, 1998, and then will be applied for social security and supplemental HA budget that budgets fewer units than all subsequent annual SEMAP reviews. security income data and Federal tax could be supported with available return data (i.e., Form W–2 and Form annual contributions due to limited HA Solicitation of Specific Comment on Particular Indicators 1099 data) shown on files of the Social management capacity, and as a result Security Administration and the the rating on the indicator as The Department specifically invites Internal Revenue Service, with family- determined under § 985.3(l)(3) is comment on whether the proposed fair reported income data that HAs submit overstated, the HUD Office may market rent (FMR) limit/payment electronically to the Multifamily Tenant decrease the points it assigns for the standards indicator and the annual Characteristics System (MTCS). See 60 lease-up indicator to adjust for the reexaminations indicator should be FR 21548; May 2, 1995 and 61 FR approved ‘‘under-budgeting’’. retained as SEMAP indicators in a final 37804; July 19, 1996 for more detail. The indicator at § 985.3(m) for FSS rule. The FMR limit/payment standards Housing agencies will be asked to enrollment applies only to HAs with indicator and the annual reexaminations resolve income discrepancies reported mandatory FSS programs (i.e., HAs that indicator would show whether the HA by TEVS and to track the amount of received FY 1992 FSS incentive award complies with key program money recovered. Section 8 funding or that received FY requirements that directly affect During Fiscal Year 1996 HUD 1993 and later year Section 8 funding whether the correct housing assistance implemented a computer matching (excluding renewal funding)). payments (HAPs) and family shares are project involving social security and The deconcentration indicator at paid. The Department, however, has supplemental security income for HAs § 985.3(n) applies only to HAs with some concern about the appropriateness serviced by HUD’s Great Plains, Rocky jurisdiction in metropolitan areas. This of their placement in a management Mountains, Pacific/Hawaii and indicator compares the dispersal of assessment program that is primarily Northwest/Alaska offices. HUD Section 8 families with children intended to be outcome oriented rather anticipates that the social security and throughout a metropolitan area to the than compliance oriented. In short, all supplemental security income matching dispersal of FMR-priced units HAs should be fully performing on will be operational nationwide by throughout the metropolitan area. FMR- these indicators. March 1997. The Federal tax return data priced units are standard quality The Department also specifically matching is now in a pilot testing stage. housing units, excluding zero- and one- invites comment on whether SEMAP Therefore, it is premature to propose a bedroom units, that rent at or below the ought to include performance indicators specific SEMAP indicator at this time. FMR as determined using 1990 Census on rent burden, portability, timeliness of The Department, however, expects that data and FMRs. The indicator measures HAPs to owners, or any other key area. HA actions to analyze matching results whether Section 8 families with A rent burden indicator could set a and to take appropriate administrative 63932 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules actions will become an important and the board chairperson and HA 3. Required Actions for SEMAP indicator of HA performance at some executive director sign, the certification. Deficiencies time during the next two years. The 2. SEMAP Score and Overall Section 985.106 requires that the HA Department anticipates providing a Performance Rating improve its Section 8 program maximum of 10 points for this indicator. management for any SEMAP indicator The Department is considering adding HUD Assessment and Verification of that is rated zero (a ‘‘SEMAP an indicator that would measure SEMAP Certification deficiency’’), and must send HUD a whether the HA adequately explains to Upon receipt of the annual HA written report of the corrective action rental voucher and certificate holders SEMAP certification, the HUD Office taken on the SEMAP deficiency within how portability works, and whether the will independently assess each HA’s 45 days of receipt of its SEMAP ratings initial HA promptly reimburses the performance under SEMAP using family from HUD. If an HA fails to correct receiving HA in accordance with data reported by HAs on Forms HUD– SEMAP deficiencies as required, HUD established portability billing and 50058 and HUD–50058–FSS and will require that the HA prepare and payment deadlines. maintained in the HUD MTCS, annual submit a written corrective action plan Effort to Minimize New Recordkeeping audit reports, and other available for the deficiency within 30 days. A key consideration in determining information to verify the HA responses. HUD must, under § 985.107, review the 15 SEMAP indicators was whether The HUD Office may also conduct an on-site any HA that is assigned an the Department can measure on-site confirmatory review to verify an overall performance rating of troubled. performance under the indicators using HA certification under any indicator. HUD will issue a written report of its readily available data, without imposing Based upon this HUD review and on-site review findings and substantial new or undue recordkeeping verification, the HUD Office will recommendations. Upon receipt of the burdens on HAs. Under the proposed prepare a SEMAP profile for each HA, HUD report, the HA must write a SEMAP indicators, an HA that is not assigning a rating for each SEMAP corrective action plan and submit it to already doing so will need to begin indicator in accordance with the HUD for approval. Both the HA and maintaining documentation of the time regulation. HUD must monitor implementation of a from receipt of request for lease corrective action plan to ensure targets Determination of SEMAP Score and for improved performance are met. approval to HQS inspection, and of its Overall Performance Rating 5 percent HQS quality control Any HA assigned an overall inspections. For all other SEMAP The HUD Office will sum its ratings performance rating of troubled may not indicators, the Department expects that for the individual indicators and divide use any part of the administrative fee HAs already keep records that will by the potential maximum number of reserve for other housing purposes (see demonstrate performance in conformity points to arrive at an overall HA SEMAP 24 CFR 982.155(b)). In these cases, the with longstanding program score. HAs with SEMAP scores of at HUD Office may require use of the requirements. least 90 percent will receive an overall administrative fee reserve for specific performance rating of high performer; administrative improvements in areas B. Program Operation HAs with SEMAP scores of 60 to 89 where administration is found deficient. The basic SEMAP procedures have percent will receive an overall 4. HAs Under the Jurisdiction of More been modeled on the Public Housing performance rating of standard; and than One HUD Office Management Assessment Program HAs with scores of less than 60 percent (PHMAP) required by section 6(j) of the will receive an overall performance For any HA with jurisdiction under U.S. Housing Act of 1937 (42 U.S.C. rating of troubled. The HUD Office may the jurisdiction of more than one HUD 1437d(j)). While SEMAP is not required modify an HA’s overall performance Office (e.g, a state agency), the HUD by law, HUD has determined that a rating (of high performer or standard) Office with the greatest amount of management assessment program for when warranted by circumstances that funding obligated under ACCs will Section 8 tenant-based assistance have bearing on the SEMAP indicators assume all responsibility for similar to PHMAP can improve the such as adverse litigation, fair housing administration of SEMAP for the HA. Department’s oversight of the Section 8 and equal opportunity compliance C. Default Under ACC programs and help HUD to target concerns, fraud or misconduct, audit An HA’s failure to correct identified monitoring and assistance to programs findings, or substantial noncompliance SEMAP deficiencies or to prepare and that pose the greatest risk and to HAs with program requirements. HUD will implement a corrective action plan needing most improvement. provide the HA a written explanation of any modified overall performance required by HUD may constitute a 1. SEMAP Certification rating. default under the ACC as determined by Section 985.101 requires an HA HUD. The ACC provides for HUD notice administering a Section 8 tenant-based HUD Notification to HA of SEMAP of a determination of default to the HA assistance program to submit annually a Ratings and authorizes HUD to take possession SEMAP certification form within 45 Within 45 days of receipt of the HA’s of all or any HA property, rights, or days after the beginning of its fiscal certification, the HUD Office will interests in connection with a program year. The certification form requires complete an HA SEMAP profile and if HUD determines that the HA has short answers from HAs concerning HA will notify the HA in writing of its failed to comply with obligations under performance under the 15 SEMAP rating on each SEMAP indicator, the the ACC, including compliance with indicators and assures HUD that HA HA’s overall SEMAP score and its any final SEMAP regulation, or with responses are accurate and that there is overall performance rating (high obligations under a HAP contract. no evidence of seriously deficient performer, standard, or troubled). The III. Findings and Certifications performance. A proposed SEMAP HUD notification letter will identify and certification form is attached as require correction of any program Paperwork Reduction Act Statement Appendix 1 to this proposed rule. The management deficiencies within 45 The proposed information collection HA board of commissioners approves, days. requirements contained at §§ 985.101, Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63933

985.106 and 985.107 of this proposed SEMAP deficiency (indicator rating of SEMAP indicator, and will complete an rule have been submitted to the Office zero). HA SEMAP profile identifying any of Management and Budget (OMB) for (3) Description of the need for the program management deficiencies and review, under section 3507(d) of the information and its proposed use: assigning an overall performance rating. Paperwork Reduction Act of 1995 (44 HUD has determined that a An HA’s written report of correction of U.S.C. Chapter 35). management assessment program for a SEMAP deficiency will be used as (a) In accordance with 5 CFR Section 8 tenant-based assistance, documentation that the HA has taken 1320.5(a)(1)(iv), the Department is similar to the Public Housing action to address identified program setting forth the following concerning Management Assessment Program weaknesses. Where HUD assigns an the proposed collection of information: (PHMAP) and including SEMAP overall performance rating of troubled, certifications, corrective action plans, (1) Title of the information collection the HA’s corrective action plan will be and reports of corrective actions, can proposal: Section 8 Management used to monitor the HA’s progress on improve the Department’s oversight of program improvements. Assessment Program (SEMAP) the Section 8 programs and help HUD (4) Description of the likely (2) Summary of the collection of to target monitoring and program respondents, including the estimated information: assistance to public housing agency number of likely respondents, and A proposed SEMAP certification form (HA) programs needing most proposed frequency of response to the is attached as Appendix 1 to this improvement and posing the greatest collection of information: proposed rule. The corrective action risk. plan is a written plan prepared by an HUD will use the HA’s SEMAP Respondents will be PHAs. The HA to address program management certification, together with otherwise estimated number of respondents is deficiencies or findings identified by available data, to assess HA included in paragraph (5), immediately HUD through remote monitoring or on- management capabilities and below. The proposed frequency of site review that will bring the HA to an deficiencies, and to assign an overall responses is once annually. acceptable level of performance. performance rating to each HA (5) Estimate of the total reporting and Through the report of corrective action, administering Section 8 tenant-based recordkeeping burden that will result an HA describes how it corrected any assistance. HUD will rate an HA on each from the collection of information:

SECTION 8.ÐMANAGEMENT ASSESSMENT PROGRAM

Responses Information collection Number of per re- Total annual Hours per Total hours Regulatory respondents spondent responses response reference

SEMAP Certification ...... 2,670 1 2,670 1 5±6 14,500 985.101 Corrective Action Plan ...... 260 1 260 10 2,600 985.107(c) Report on Correction of SEMAP Deficiency ...... 670 1 670 2 1,340 985.106

Total Annual Burden ...... 18,440 1 1,150 metropolitan HAs will require an extra hour to write narrative on actions to broaden metropolitan area-wide housing choice.

(b) In accordance with 5 CFR this proposal. Comments must be October 4, 1993). Any changes to the 1320.8(d)(1), the Department is received within sixty (60) days from the proposed rule resulting from this review soliciting comments from members of date of this proposal. Comments must are available for public inspection the public and affected agencies refer to the proposal by name and between 7:30 a.m. and 5:30 p.m. concerning the proposed collection of docket number (FR–3447) and must be weekdays in the Office of the Rules information to: sent to: Joseph F. Lackey, Jr., HUD Desk Docket Clerk. (1) Evaluate whether the proposed Officer, Office of Management and Regulatory Flexibility Act. collection of information is necessary Budget, New Executive Office Building, for the proper performance of the Washington, DC 20503. In accordance with 5 U.S.C. 605(b) functions of the agency, including (the Regulatory Flexibility Act), the Environmental Impact whether the information will have undersigned hereby certifies that this practical utility; A Finding of No Significant Impact proposed rule does not have a (2) Evaluate the accuracy of the with respect to the environment has significant economic impact on a agency’s estimate of the burden of the been made in accordance with HUD substantial number of small entities. proposed collection of information; regulations at 24 CFR part 50, which The proposed rule establishes (3) Enhance the quality, utility, and implement section 102(2)(C) of the management assessment criteria for clarity of the information to be National Environmental Policy Act of HAs. HUD does not anticipate a collected; and 1969. The Finding of No Significant significant economic impact on a (4) Minimize the burden of the Impact is available for public inspection substantial number of small entities, collection of information on those who between 7:30 a.m. and 5:30 p.m. since the proposed rule establishes are to respond; including through the weekdays in the Office of the Rules management assessment criteria which use of appropriate automated collection Docket Clerk at the above address. will be utilized by State/Area Offices for techniques or other forms of information monitoring purposes and the provision Regulatory Planning and Review technology, e.g., permitting electronic of technical assistance to HAs. submission of responses. This proposed rule has been reviewed Interested persons are invited to in accordance with Executive Order Unfunded Mandates Reform Act submit comments regarding the 12866, issued by the President on The Secretary has reviewed this information collection requirements in September 30, 1993 (58 FR 51735, proposed rule before publication and by 63934 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules approving it certifies, in accordance PART 985ÐSECTION 8 MANAGEMENT § 985.2 Definitions. with the Unfunded Mandates Reform ASSESSMENT PROGRAM (SEMAP) (a) The terms Department, Fair Market Act of 1995 (2 U.S.C. 1532), that this Rent, HUD, Secretary, and Section 8, as proposed rule does not impose a Federal Subpart AÐGeneral used in this part, are defined in 24 CFR mandate that will result in the Sec. 5.100. expenditure by State, local, and tribal 985.1 Purpose and applicability. (b) The definitions in 24 CFR 982.4 985.2 Definitions. governments, in the aggregate, or by the apply to this part. As used in this part: 985.3 Indicators, HUD verification methods Corrective action plan means a HUD- private sector, of $100 million or more and ratings. in any one year. required written plan to address HA Subpart BÐProgram Operation program management deficiencies or Federalism 985.101 SEMAP certification. findings identified by HUD through 985.102 SEMAP profile. remote monitoring or on-site review that The General Counsel, as the 985.103 SEMAP score and overall will bring the HA to an acceptable level Designated Official under section 6(a) of performance rating. of performance. Executive Order 12612, Federalism, has 985.104 HA right of appeal of overall rating. HA means a Housing Agency, determined that the policies contained 985.105 HUD Office SEMAP excluding an IHA. in this proposed rule will not have responsibilities. HUD office means a HUD State or substantial direct effects on States or 985.106 Required actions for SEMAP deficiencies. Area Office unless otherwise specified. their political subdivisions, or the 985.107 Required actions for HA with MTCS means Multifamily Tenant relationship between the Federal troubled performance rating. Characteristics System. MTCS is the government and the States, or on the 985.108 SEMAP records. Department’s national data base on distribution of power and 985.109 Default under the Annual participants and rental units in the responsibilities among the various Contributions Contract (ACC). Section 8 rental certificate, rental levels of government. The proposed rule Authority: 42 U.S.C. 1437a, 1437c, 1437f, voucher, and moderate rehabilitation is intended to promote good and 3535(d). programs and in the Public and Indian Housing programs. management practices by including, in Subpart AÐGeneral HUD’s relationship with HAs, MTCSupport means HUD’s automated system to provide summary reports of continuing review of HAs’ compliance § 985.1 Purpose and applicability. Section 8 participant data collected and with already existing requirements. The (a) Purpose. The Section 8 maintained in HUD’s MTCS. proposed rule does not create any new Management Assessment Program Performance indicator means a significant requirements of its own. As (SEMAP) is designed to assess whether standard set for a key area of Section 8 a result, the proposed rule is not subject the Section 8 tenant-based assistance program management against which the to review under the Order. programs operate to help eligible HA’s performance is measured to show families afford decent rental units at a Family Impact whether the HA administers the reasonable subsidy cost. SEMAP also program properly and effectively. (See The General Counsel, as the establishes an objective system for HUD § 985.3.) to measure HA performance in key Designated Official under Executive SEMAP certification means the HA’s Section 8 program areas to enable the Order 12606, The Family, has annual certification to HUD, on the form Department to ensure program integrity prescribed by HUD, concerning its determined that this proposed rule does and accountability. SEMAP provides not have potential for significant impact performance in key Section 8 program procedures for HUD to identify HA areas. on family formation, maintenance, and management capabilities and general well-being, and, thus, is not SEMAP deficiency means any rating deficiencies in order to target of 0 points on a SEMAP performance subject to review under the Order. The monitoring and program assistance proposed rule involves requirements for indicator. more effectively. HAs can use the SEMAP profile means a summary management assessment of HAs. Any SEMAP performance analysis to assess prepared by the HUD Office of an HA’s effect on the family would be indirect. and improve their own program ratings on each SEMAP indicator, its To the extent families in public housing operations. overall SEMAP score, and its overall will be affected, the impact of the rule’s (b) Applicability. This rule applies to performance rating (high performer, requirements is expected to be a HA administration of the tenant-based standard, troubled). positive one. Section 8 rental voucher and rental certificate programs (24 CFR part 982), § 985.3 Indicators, HUD verification Catalog the project-based component of the methods and ratings. The catalog of Federal Domestic certificate program (24 CFR part 983), This section states the performance Assistance numbers are 14.855 and and enrollment of Section 8 participants indicators that are used to assess HA under the family self-sufficiency Section 8 management. The HUD Office 14.857. program (FSS) (24 part CFR 984). This will use the verification method List of Subjects in 24 CFR Part 985 rule does not apply to Indian housing identified for each indicator in authority (IHA) administration of these reviewing the accuracy of an HA’s Grant programs—housing and programs. Performance of IHA annual SEMAP certification. The HUD community development, Housing, Rent administration of the Section 8 Office will prepare a SEMAP profile for subsidies, Reporting and recordkeeping programs is assessed using the HUD each HA assigning a rating for each requirements. Office of Native American Programs indicator as shown. If the HUD Accordingly, 24 CFR, chapter IX is Risk Assessment and Determination for verification method for the indicator proposed to be amended by adding a Allocation of Resources instrument. relies on data in MTCSupport and HUD SEMAP does not cover the Section 8 determines those data are insufficient to new part 985 to read as follows: moderate rehabilitation program (24 verify the HA’s certification on the CFR part 882, subparts D and E). indicator due to the HA’s failure to Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63935 adequately report family data, the HUD percent of the units newly leased under to owner calculations that are incorrect Office shall assign a zero rating for the the rental certificate program have based on data sent to HUD by the HA indicator: initial gross rents at or below the on Forms HUD–50058. (a) Selection from the Waiting List. (1) applicable FMR/exception rent limits, (3) Ratings: (i) 2 percent or fewer of This indicator shows whether the HA and whether the HA has adopted all HA tenant rent and family’s share of has written admission policies in its payment standards for the rental the rent to owner calculations are administrative plan and whether the HA voucher program, for each FMR area in incorrect. 5 points. follows these policies when selecting the HA jurisdiction, which do not (ii) More than 2 percent of all HA applicants for admission from the exceed the applicable FMR/exception tenant rent and family’s share of the rent waiting list. (24 CFR 982.54(d)(1) and rent limits. to owner calculations are incorrect. 0 982.204(a)). (2) HUD verification method: points. (2) HUD verification method: The MTCSupport—Rents and Rent Burdens (f) Income determination and utility latest independent auditor (IA) annual Report—Shows newly leased certificate allowances. (1) This indicator shows audit report. units’ gross rents as percent of FMR and whether, at the time of admission and (3) Rating: (i) The latest IA audit shows voucher payment standards as reexamination, the HA verifies and report states that: The HA has written percent of FMR. correctly determines adjusted annual admission policies in its administrative (3) Rating: (i) At least 90 percent of income for each assisted family, and plan and, based on random samples of the units newly leased under the rental whether the HA maintains and properly applicants and admissions, certificate program have initial gross applies an up-to-date utility allowance documentation in the tenant files shows rents at or below the applicable FMR/ schedule. (24 CFR 813.109). that families were selected from the exception rent limits and the HA’s (2) HUD verification method: The waiting list for admission in accordance rental voucher program payment latest IA annual audit report. with these policies and met the standards do not exceed the applicable selection criteria that determined their FMR/exception rent limits. 5 points. (3) Rating: (i) (A) The latest IA audit places on the waiting list and their order (ii) More than 10 percent of rental report states that, based on the audit and of admission. 10 points. certificate program units have been a random sample of tenant files, for at (ii) The latest IA audit report does not newly leased at initial gross rents that least 90 percent of families: support the statement in paragraph exceed the applicable FMR/exception (1) The HA obtains third party (a)(3)(i) of this section. 0 points. rent limits or the HA’s rental voucher verification of reported family income, (b) Rent reasonableness. (1) This program payment standards exceed the assets, and composition, and/or indicator shows whether the HA has FMR/exception rent limits. 0 points. documents tenant files to show why and implements a written methodology (d) Annual reexaminations. (1) This independent verification is not possible; to determine and document for each indicator shows whether the HA (2) The HA properly attributes and unit leased that, at the time of initial conducts a reexamination for each calculates allowances for any medical, leasing and at least annually during an participating family at least every 12 child care, and/or handicapped assisted tenancy, the rent to owner is months. assistance costs; and reasonable based on current rents for (2) HUD verification method: (3) The HA uses the appropriate comparable unassisted units. The HA’s MTCSupport—Key Management utility allowances for the unit leased. system must take into consideration the Indicators Report—Shows percent of (B) The audit report also states that location, size, type, quality, age and reexaminations that are more than 2 the HA has analyzed utility rate data amenities of the unit to be leased in months overdue. The 2-month within the last year, and adjusted its determining comparability and the allowance is provided only to utility allowance schedule if there has reasonable rent. accommodate a possible lag in the HA’s been a change of 10 percent or more in (2) HUD verification method: The electronic reporting of the annual a utility rate since the last time the latest IA annual audit report. reexamination on Form HUD–50058, utility allowance schedule was revised. (3) Rating: (i) The latest IA audit and to allow the processing of the data 20 points. report states that: into MTCS. The 2-month allowance (ii) The latest IA audit report includes (A) The HA has a written provided here for rating purposes does the statements in paragraph (f)(3)(i) of methodology it follows to determine not mean that any delay in completing this section, except that the HA obtains rent reasonableness; and annual reexaminations is permitted. third party verifications, properly (B) Based on a random sample of (3) Rating: (i) Fewer than 2 percent of attributes allowances, and uses the tenant files, the HA documents rent all HA reexaminations are more than 2 appropriate utility allowances for only reasonableness for each unit leased at months overdue. 10 points. 80 to 89 percent of families. 10 points. initial leasing and annually thereafter. (ii) 2 to 10 percent of all HA (iii) The latest IA audit report does 20 points. reexaminations are more than 2 months not support the statements in either (ii) The latest IA audit report includes overdue. 5 points. the statement in paragraph (b)(3)(i) of (iii) More than 10 percent of all HA paragraph (f)(3)(i) or (f)(3)(ii) of this this section, except that the HA reexaminations are more than 2 months section. 0 points. documents rent reasonableness for only overdue. 0 points. (g) Time from request for lease 80 to 99 percent of units at initial (e) Correct tenant rent calculations. approval (RFLA) to HQS inspection. (1) leasing and annually thereafter. 10 (1) This indicator shows whether the This indicator shows whether the HA points. HA correctly calculates tenant rent in promptly inspects a unit when a rental (iii) The latest IA audit report does the rental certificate program and the voucher or certificate holder submits a not support either statement in family’s share of the rent to owner in the RFLA. paragraphs (b)(3)(i) and (b)(3)(ii) of this rental voucher program. (2) HUD verification method: On-site section. 0 points. (2) HUD verification method: confirmatory review. (c) Fair market rent (FMR) limit and MTCSupport—Key Management (3) Rating: (i) 90 percent or more units payment standard (PS). (1) This Indicators Report—Shows percent of all are inspected within 7 calendar days of indicator shows whether at least 90 tenant rent and family’s share of the rent HA receipt of RFLA. 10 points. 63936 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules

(ii) 90 percent or more units are reinspects a random sample of at least Section 8 funding or that received FY inspected within 14 calendar days of 5 percent of completed HQS 1993 or later year Section 8 funding HA receipt of RFLA. 5 points. inspections. (24 CFR 982.405(b)). (excluding renewal funding)). (24 CFR (iii) Less than 90 percent of units are (2) HUD verification method: The 984.105). inspected within 14 calendar days of latest IA annual audit report. (2) HUD verification method: RFLA. 0 points. (3) Rating: (i) The latest IA audit MTCSupport—Resident Characteristics (iv) If a unit for which an HA receives report states that the auditor has Report—Shows number of families a RFLA is occupied, and therefore not determined that an HA supervisor or enrolled in FSS. This number is divided available for inspection at the time the other qualified person performs by the number of mandatory FSS slots HA receives the RFLA, the HA may reinspections of a sample of 5 percent based on funding reserved for the HA document this fact and the date that the of inspections for quality control through the second to last completed HA is later notified that the unit is purposes. 5 points. Federal fiscal year. vacant and available for inspection. The (ii) The latest IA audit report does not (3) Rating: (i) The HA has filled 80 later date may be used as the date of the support the statement in paragraph percent or more of its mandatory FSS HA’s receipt of the RFLA for rating (j)(3)(i) of this section. 0 points. slots. 10 points. under this indicator. (k) HQS enforcement. (1) This (ii) The HA has filled 60 to 79 percent (h) Pre-contract housing quality indicator shows whether, following of its mandatory FSS slots. 5 points. standards (HQS) inspections. (1) This each HQS inspection, the unit passes (iii) The HA has filled fewer than 60 indicator shows whether each unit HQS or cited deficiencies are corrected percent of its mandatory FSS slots. 0 leased passed HQS inspection before the within 30 days or any HA-approved points. beginning date of the assisted lease extension. In addition, if deficiencies (n) Deconcentration. (1) This term. (24 CFR 982.305). are not corrected timely, the indicator indicator applies only to HAs with (2) HUD verification method: shows whether the HA stops (abates) jurisdiction in metropolitan areas. The MTCSupport—Key Management HAPs or terminates the HAP contract or, indicator shows whether the HA Indicators Report—Shows percent of for family-caused defects, takes prompt effectively solicits participation of newly leased units where the effective and vigorous action to enforce the owners of affordable units in all areas of date of the assistance contract is before family obligations. (24 CFR 982.404). its jurisdiction, provides assistance to the date the unit passed HQS (2) HUD verification method: The Section 8 families with children to inspection. latest IA annual audit report. motivate and increase housing choice, (3) Rating: (i) Each unit under HAP (3) Rating: (i) The latest IA audit and takes action to broaden contract passed HQS inspection before report states that the review of a random metropolitan area-wide housing choice. the beginning date of the assisted lease sample of tenant files shows that, if (2) HUD verification method: MTCS term. 5 points. HQS deficiencies are not corrected data and HA narrative describing (ii) Any unit has been leased that did within 30 days or any HA-approved actions to broaden metropolitan area- not pass HQS inspection before the extension, the HA stops (abates) HAPs wide housing choice. HUD assesses the beginning date of the assisted lease or takes prompt and vigorous action to HA’s effectiveness in encouraging term. 0 points. enforce family obligations. 10 points. deconcentration by determining (i) Annual HQS inspections. (1) This (ii) The latest IA audit report does not whether Section 8 families with indicator shows whether the HA support the statement in paragraph children are at least as dispersed inspects each unit under contract at (k)(3)(i) of this section. 0 points. throughout the metropolitan area as least annually. (24 CFR 982.405(a)). (l) Lease-up. (1) This indicator shows FMR-priced units. FMR-priced units are (2) HUD verification method: whether the HA successfully contracts standard quality rental units, excluding MTCSupport—Key Management for the units that have been under zero- and one-bedroom units, that rent Indicators Report—Shows percent of budget for at least one year. at or below the FMR. To compare the HQS inspections that are more than 2 (2) HUD verification method: Latest dispersal of Section 8 families with months overdue. The 2-month Report on Program Utilization (HUD– children to the dispersal of FMR-priced allowance is provided only to 52683). units, HUD first determines the accommodate a possible lag in the HA’s (3) Rating: (i) 98 percent or more of dispersal of FMR-priced units among all electronic reporting of the annual HQS the units budgeted for the last census tracts in an HA jurisdiction and inspection on Form HUD–50058, and to completed HA fiscal year are under in the metropolitan area based on 1990 allow the processing of the data into contract. 20 points. census data and FMRs. HUD then MTCS. The 2-month allowance (ii) 95 percent or more but less than considers the poverty rates of the census provided here for rating purposes does 98 percent of the units budgeted for the tracts and determines what poverty rate not mean that any delay in completing last completed HA fiscal year are under divides the FMR-priced units in half annual HQS inspections is permitted. contract. 10 points. (the ‘‘dividing poverty rate’’). That is, at (3) Rating: (i) No annual HQS (iii) Less than 95 percent of the units what poverty rate are half of the FMR- inspections of units under contract are budgeted for the last completed HA priced units dispersed in census tracts more than 2 months overdue. 10 points. fiscal year are under contract. 0 points. with poverty rates above that level, and (ii) Some but less than 10 percent of (iv) If the HA failed to submit the half dispersed in census tracts with all annual HQS inspections of units required Report on Program Utilization, poverty rates below that level. Then under contract are more than 2 months 0 points shall be assigned for this HUD determines the percent of Section overdue. 5 points. indicator. 8 families with children that reside in (iii) 10 percent or more of all annual (m) Family self-sufficiency (FSS) census tracts with poverty rates below HQS inspections of units under contract enrollment. (1) This indicator shows the dividing poverty rate. The goal is to are more than 2 months overdue. 0 whether the HA has enrolled families in have at least 60 percent of Section 8 points. the FSS program as required. This families with children living in census (j) HQS quality control inspections. indicator applies only to HAs with tracts with poverty rates below the (1) This indicator shows whether an HA mandatory FSS programs (i.e., HAs that dividing poverty rate. HUD makes the supervisor or other qualified person received FY 1992 FSS incentive award determination twice: First, for only the Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63937

HA’s area of jurisdiction, and then for Subpart BÐProgram Operation SEMAP. An HA that achieves an overall the entire metropolitan area. HUD also performance rating of high performer assesses the HA’s actions to broaden § 985.101 SEMAP certification. may receive national recognition by the metropolitan area-wide housing choice (a) An HA must submit the HUD- Department. such as counseling, transportation required SEMAP certification form (b) Standard rating. HAs with SEMAP assistance, and cooperation with other within 45 calendar days after the start scores of 60 to 89 percent shall be rated metropolitan area HAs or nonprofit of its fiscal year. standard. organizations which promote housing (1) The certification must be approved (c) Troubled rating. HAs with SEMAP choice. by HA board resolution and be signed scores of less than 60 percent shall be (3) Rating: (i) At least 50 percent of by the board of commissioners rated troubled. Section 8 families with children reside chairperson and by the HA executive (d) Modified rating. (1) in the HA jurisdiction census tracts with director. Where a unit of local Notwithstanding an HA’s SEMAP score, poverty rates below the dividing poverty government or a state administers the the HUD Office may modify an HA’s rate; and at least 50 percent of Section Section 8 program, a resolution overall performance rating when 8 families with children reside in the approving the certification is not warranted by circumstances which have metropolitan area census tracts with required, and the certification must be bearing on the SEMAP indicators such poverty rates below the dividing poverty executed by the Section 8 program as adverse litigation, a conciliation rate, or the HA is taking action to director and the chief executive officer agreement under Title VI of the Civil broaden metropolitan area-wide housing of the unit of government. Rights Act of 1964 (42 U.S.C. 3600– choice. 10 points. (2) An HA that subcontracts 3620), fair housing and equal administration of its program to one or (ii) 40 to 49 percent of Section 8 opportunity monitoring and compliance more subcontractors shall require each families with children reside in the HA review findings, fraud or misconduct, subcontractor to submit the jurisdiction census tracts with poverty audit findings or substantial subcontractor’s own SEMAP rates below the dividing poverty rate; noncompliance with program certification on the HUD-prescribed and 40 to 49 percent of Section 8 requirements. form to the HA in support of the HA’s families with children reside in the (2) When the HUD Office modifies an SEMAP certification to HUD. The HA metropolitan area census tracts with overall performance rating for any shall retain subcontractor certifications poverty rates below the dividing poverty reason it shall explain in writing to the for three years. rate, or the HA is taking action to HA the reasons for the modification. (3) An HA may include with its broaden metropolitan area-wide housing SEMAP certification any information § 985.104 HA right of appeal of overall choice. 5 points. bearing on the accuracy or completeness rating. (iii) Neither statement in paragraph of the information used by the HA in An HA may appeal its overall (n)(3)(i) or (n)(3)(ii) applies. 0 points. providing its certification. performance rating to the HUD Office by (o) Welfare to work. (1) This indicator (b) Failure of an HA to submit its providing justification of the reasons for shows whether the HA helps assisted SEMAP certification within 45 calendar its appeal. families move from welfare to work. days after the start of its fiscal year will HUD will determine the percentage of § 985.105 HUD Office SEMAP result in an overall performance rating responsibilities. the HA’s rental voucher and certificate of troubled and the HA will be subject (a) Annual review. The HUD Office program families whose primary source to the requirements at § 985.107. shall assess each HA’s performance of income at the start of the previous (c) An HA’s SEMAP certification is under SEMAP annually and shall assign federal fiscal year was AFDC and/or subject to HUD verification by an on-site each HA a SEMAP score and overall general assistance (‘‘welfare families’’) confirmatory review at any time. (excluding families whose head of performance rating. household is elderly or disabled) which § 985.102 SEMAP profile. (b) Notification to HA. No later than had earnings as the primary source of Upon receipt of the HA’s SEMAP 45 calendar days after receipt of the income (‘‘working families’’) at the end certification, the HUD Office will rate HA’s SEMAP certification, the HUD of the previous federal fiscal year. This the HA’s performance under each Office shall notify each HA in writing of indicator will be implemented in SEMAP indicator in accordance with its rating on each SEMAP indicator, of SEMAP beginning in federal fiscal year § 985.3. If an HA administers both the its overall SEMAP score and of its 1999. rental certificate program and the rental overall performance rating (high performer, standard, troubled). The (2) HUD verification method: voucher program, performance under HUD notification letter shall identify MTCSupport—Key Management each indicator is initially assessed and require correction of any SEMAP Indicators—Shows percent of welfare separately for each program. If the deficiencies (indicator rating of zero) families who became working families indicator ratings differ by program, the within 45 calendar days. during the previous federal fiscal year. HUD Office shall assign the HA the lower rating for the indicator. The HUD (c) On-site confirmatory review. The (3) Rating: (i) More than 15 percent of HUD Office may conduct an on-site welfare families became working Office will then prepare a SEMAP profile for each HA which shows the confirmatory review to verify the HA families during the previous federal certification and the HUD rating under fiscal year. 10 points. rating for each indicator, sums the indicator ratings, and divides by the any indicator. (ii) Between 5 and 15 percent of total possible points to arrive at an HA’s (d) Changing rating from troubled. welfare families became working overall SEMAP score. The HUD Office must conduct an on- families during the previous federal site confirmatory review of an HA’s fiscal year. 5 points. § 985.103 SEMAP score and overall performance before changing any (iii) Fewer than 5 percent of welfare performance rating. annual overall performance rating from families became working families (a) High performer rating. HAs with troubled to standard or high performer. during the previous federal fiscal year. SEMAP scores of at least 90 percent (e) Appeals. The HUD Office must 0 points. shall be rated high performers under review, consider and provide a final 63938 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules written determination to an HA on its (b) HUD written report. The HUD use any part of the administrative fee appeal of its overall performance rating. Office must provide the HA a written reserve for other housing purposes (see (f) Corrective action plans. The HUD report of its on-site review containing 24 CFR 982.155(b)). Office must review the adequacy and HUD findings of program management (f) Upgrading poor performance monitor implementation of HA deficiencies and recommendations for rating. The HUD Office shall change an corrective action plans submitted under improvement. HA’s overall performance rating from § 985.106(c) or § 985.107(c), and provide (c) HA corrective action plan. Upon technical assistance to help the HA receipt of the HUD Office written report troubled to standard or high performer improve program management. If an HA on its on-site review, the HA must write if HUD determines that a change in the is assigned an overall performance a corrective action plan and submit it to rating is warranted because of improved rating of troubled, the HA’s corrective HUD for approval. The corrective action HA performance and an improved action plan must be approved by the plan must: SEMAP score. HUD Office. (1) Specify goals to be achieved; § 985.108 SEMAP records. § 985.106 Required actions for SEMAP (2) Identify obstacles to goal deficiencies. achievement and ways to eliminate or The HUD Office shall maintain avoid them; SEMAP files, including certifications, (a) When the HA receives the HUD (3) Identify resources that will be used notifications, appeals, corrective action Office notification of its SEMAP rating, or sought to achieve goals; an HA must correct any SEMAP plans, and related correspondence for at (4) Identify an HA staff person with deficiency (indicator rating of zero) least three years. lead responsibility for completing each within 45 calendar days. goal; § 985.109 Default under the Annual (b) The HA must send a written report Contributions Contract (ACC). to the HUD Office on its correction of (5) Identify key tasks to reach each any identified SEMAP deficiency. goal; HUD may determine that an HA’s (c) If an HA fails to correct a SEMAP (6) Specify time frames for failure to correct identified SEMAP deficiency within 45 calendar days as achievement of each goal, including deficiencies or to prepare and required, the HUD Office may then intermediate time frames to complete implement a corrective action plan require the HA to prepare and submit a each key task; and required by HUD constitutes a default (7) Provide for regular evaluation of corrective action plan for the deficiency under the ACC. within 30 calendar days. progress toward improvement. (d) Monitoring. The HA and the HUD Dated: October 21, 1996. § 985.107 Required actions for HA with Office must monitor the HA’s Kevin Emanuel Marchman, troubled performance rating. implementation of its corrective action Acting Assistant Secretary for Public and (a) Required on-site review. Upon plan to ensure performance targets are Indian Housing. assigning an overall performance rating met. of troubled, the HUD Office must (e) Use of administrative fee reserve Note: Appendix 1 will not be codified in conduct an on-site review of HA prohibited. Any HA assigned an overall the Code of Federal Regulations. program management. performance rating of troubled may not BILLING CODE 4210±33±P Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63939 63940 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Proposed Rules 63941

[FR Doc. 96–30297 Filed 11–29–96; 8:45 am] BILLING CODE 4210±33±C federal register December 2,1996 Monday Rule Book-Entry ProceduresRevisions;Interim Mortgage Corporation(FreddieMac) (Fannie Mae)andFederalHomeLoan Federal NationalMortgageAssociation 24 CFRPart81 1 CFRPart462 Development Housing andUrban Department of Part III 63943 63944 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

DEPARTMENT OF HOUSING AND FOR FURTHER INFORMATION CONTACT: form proposed in light of continuing URBAN DEVELOPMENT Janet Tasker, Director, Office of work on a comprehensive revision of Government-Sponsored Enterprises, the Treasury’s book-entry regulations. 1 CFR Part 462 Room 6154, telephone (202) 708–2224; They urged HUD to wait until Treasury or, for legal questions, Kenneth A. adopted revised book-entry regulations, 24 CFR Part 81 Markison, Assistant General Counsel for and then to adopt consistent regulations Government Sponsored Enterprises/ for Book-entry GSE Securities. Treasury [Docket No. FR±4095±I±01] RESPA, Office of the General Counsel, was, at that time, in the process of Room 9262, telephone (202) 708–3137. completing its revision of its book-entry RIN 2501±AC35 The address for both of these persons is: regulations to reflect a major revision to The Secretary of HUD's Regulation of Department of Housing and Urban Article 8 of the UCC. (Treasury had the Federal National Mortgage Development, 451 Seventh Street, SW, withdrawn proposed changes to its own Association (Fannie Mae) and the Washington, DC 20410. A regulations pending the completion of Federal Home Loan Mortgage telecommunications device for deaf the revisions to Article 8 and Corporation (Freddie Mac): Book-Entry persons (TTY) is available at (202) 708– conforming revisions to Article 9 of the Procedures 9300. (The telephone numbers are not UCC. See 57 FR 12244 (April 9, 1992) toll-free.) and 58 FR 59972 (November 12, 1993).) AGENCY: Office of the Secretary, HUD. The Federal Reserve Bank of New York SUPPLEMENTARY INFORMATION: ACTION: Interim rule. also urged HUD to delay I. Background implementation of new book-entry SUMMARY: This interim rule revises provisions, await Treasury’s adoption of Both Fannie Mae and Freddie Mac procedures that govern the issuance, revised book-entry regulations, and then use the Book-entry System of the recordation, and transfer of Federal promulgate consistent regulations. Federal Reserve Banks to issue, record, National Mortgage Association (‘‘Fannie As indicated in the preamble to and transfer ownership of certain of Mae’’) and Federal Home Loan Mortgage HUD’s final rule implementing other their respective securities. Although the Corporation (‘‘Freddie Mac’’) matters pursuant to FHEFSSA, 60 FR Book-entry System was originally (collectively ‘‘Government-Sponsored 61846, 61885 (December 1, 1995), the designed for Treasury securities, both Enterprises’’ or ‘‘GSEs’’) Securities in Secretary decided to postpone making GSEs have used this system under the Book-entry System. The rule significant revisions to the book-entry separate sets of regulations dating back modifies HUD’s current book-entry regulations for the GSEs, including to the late 1970s. Treasury regulations procedures for Fannie Mae to bring establishing uniform book-entry govern the Book-entry System, known them into accord with the revised book- procedures for both GSEs, pending as the commercial book-entry system, entry procedures of the Department of completion of the revised Treasury when it is used to issue, record, transfer Treasury (‘‘Treasury’’) published in the book-entry regulations. Based on the and maintain Treasury securities. Federal Register on August 23, 1996 (61 comments received, the Secretary Recently, Treasury substantially FR 43626). This rule also extends these determined that for HUD to act at that modified its regulations governing revised book-entry procedures to time to finalize a complete set of Treasury securities held in this system Freddie Mac and supersedes Freddie regulations for both GSEs, and then to reflect contemporary legal Mac’s current book-entry regulations. shortly to revise them, would be development of the Uniform In accordance with Treasury’s revised inefficient and lead to confusion. In the Commercial Code (‘‘UCC’’). This book-entry procedures, this rule final rule, HUD announced its intention regulation conforms the book-entry incorporates recent significant changes to adopt revised regulations regulations applicable to GSE securities in commercial and property law, simultaneous with Treasury’s adoption to the changes made in Treasury’s including changes concerning the of a final rule revising its book-entry regulations (tailoring the changes to holding of securities through financial procedures and to make HUD’s differences in the GSEs and GSE intermediaries. This rule replaces regulations consistent with Treasury’s at Securities), and combines the book- existing regulations that contain that time. entry regulations applicable to both outdated legal concepts. This rule On March 4, 1996 (61 FR 8420), GSEs into a single set of regulations. applies to outstanding securities. Treasury’s Bureau of the Public Debt This rule furthers a rulemaking proposed revisions to its book-entry DATES: Effective date: January 1, 1997. regarding book-entry procedures begun regulations. The purposes of Treasury’s Comment due date: Comments must with the publication of HUD’s proposed changes, like the purposes of the be submitted by January 31, 1997. rule, 60 FR 9154 (Feb. 16, 1995), to changes to HUD’s rule announced ADDRESSES: Interested persons are implement the Federal Housing today, were to incorporate recent and invited to submit comments regarding Enterprises Financial Safety and significant changes in commercial law this rule to the Office of the General Soundness Act of 1992 (‘‘FHEFSSA’’). addressing the holding of securities in Counsel, Rules Docket Clerk, room As part of that rulemaking, HUD book-entry form through securities 10276, Department of Housing and proposed to revise the book-entry intermediaries and to replace existing Urban Development, 451 Seventh Street, procedures applicable to Fannie Mae, regulations that contain outdated legal SW, Washington, DC 20410–0500. and make the procedures applicable to concepts. Treasury received eleven Comments should refer to the above both GSEs. In comments on the comments on its proposed rule. Based docket number and title of the rule. proposed rule, however, the GSEs and on Treasury’s proposal, the comments Facsimile (FAX) comments are not the Book-Entry Treasury Regulations received in response, and Treasury’s acceptable. A copy of each Task Force of the Investment Securities approach to addressing the comments in communication submitted will be Subcommittee of the UCC Committee of Treasury’s August 23, 1996 final rule, available for public inspection and the Business Law Section of the and HUD’s previously announced copying during regular business hours American Bar Association (‘‘ABA Task determination, based on the comments (weekdays 7:30 a.m. to 5:30 p.m. Eastern Force’’) stated that HUD should not received, to issue revised book-entry time) at the above address. revise the book-entry procedures in the regulations consistent with Treasury’s Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63945 once those were promulgated, HUD Federal Reserve Banks. (Additionally, Revisions to 81.2 Definitions developed this interim rule. HUD HUD’s rule provides for federal The rule adds some definitions to considered Treasury’s proposal, the preemption of state law with respect to § 81.2. These definitions correspond to comments received in response thereto, the rights and obligations of the GSEs.) definitions in 31 CFR 357.2, but are and Treasury’s final rule as relevant to • Other than as expressly stated in tailored to apply to the GSEs and their this interim rule, since this rule is the rule, no duty exists on the part of securities. It should be noted that HUD’s closely modelled on Treasury’s rule— Treasury, Freddie Mac, Fannie Mae, or rule uses the terminology ‘‘Book-entry except differences necessitated by the Federal Reserve to holders of GSE System’’ rather than ‘‘TRADES,’’ distinctions in the GSEs and their GSE securities indirectly or through a because TRADES is Treasury’s unique Securities—and will become effective securities intermediary. terminology for the system as applied to simultaneously with Treasury’s rule. In • Treasury securities. light of the public comments on HUD’s Book-entry GSE Securities may be HUD’s definition of ‘‘person’’ makes February 16, 1995 proposed revisions to converted to definitive securities only clear that it excludes the GSEs. In the book-entry procedures and in light when so permitted in the documents addition, HUD’s rule provides a of Treasury’s notice and comment establishing the terms of the securities. definition of ‘‘Securities rulemaking and HUD’s adaptation of Four significant areas in which HUD’s Documentation.’’ Further, HUD intends Treasury’s rule to GSE Securities, HUD rule differs from Treasury’s rule, that the rule’s definitions of ‘‘Book-entry is issuing its revisions as an interim rule however, are the following: GSE Security’’ and ‘‘GSE Security’’ refer to accompany Treasury’s final rule • Under Treasury regulations, previously published in the Federal to the wide array of securities and Treasury securities may be maintained obligations that the GSEs issue. Register. in either of two book-entry systems— The book-entry rule announced today The definitions added to § 81.2 are TRADES or TREASURY DIRECT. supplemented by a general provision, is identical for both GSEs and provides Inasmuch as there is no direct a level playing field for both GSE’s § 81.2(c), which indicates that terms registration and holding of GSE securities. To this end, this regulation used in subpart H that are not defined Securities at this time, this rule does not supersedes not only HUD’s current in part 81 have the meanings set forth establish a system analogous to book-entry regulation for Fannie Mae in 31 CFR 357.2. This provision reflects TREASURY DIRECT for GSE Securities. contained in 24 CFR part 81, subpart H, HUD’s determination that it is but also supersedes Freddie Mac’s • The GSEs issue a wide variety of unnecessary to define certain terms current book-entry regulation, codified securities, some of which are not used in subpart H or used in a section at 1 CFR part 462. maintained by the Federal Reserve of Treasury’s rule adopted by cross- Banks. GSE Securities not maintained reference in subpart H, even though II. Analysis of Revisions to Book-Entry by a Federal Reserve Bank are not those terms are not defined in part 81, Procedures subject to this book-entry regulation and because the definitions in the Treasury Except as is necessary because of there is no federal preemption by these rule are adequate (e.g., ‘‘Security differences between the GSEs and their subpart H regulations for such Entitlement’’). securities and Treasury and Treasury securities. Furthermore, the book-entry This rule also eliminates an outdated securities, HUD’s revisions to the book- regulation in this subpart H applies only provision that formerly appeared in the entry procedures applicable to GSEs for so long as the GSE security is definition of ‘‘Fannie Mae security,’’ follow the revisions Treasury is making actually on the Book-entry System; this which excluded short-term discount to its book-entry procedures in a final regulation does not apply to GSE notes and obligations convertible into rule previously published in the Federal securities initially issued on the records shares of common stock. Register. HUD adopts, to the extent of a Federal Reserve Bank when those Section 81.91 relevant, the substance of the analysis securities are taken off the book-entry contained in the commentary to system and converted to definitive form. This section, addressing maintenance Treasury’s final rule, which will be • The book-entry regulation of GSE Securities, is modelled after 31 codified at 31 CFR Part 357, Appendix applicable to the GSEs recognizes that CFR 357.0, but is custom-tailored to B of Treasury’s regulations. It is HUD’s there are variations in documentation GSE Securities to reflect that GSE intent that the book-entry procedures that a GSE uses depending upon the Securities need not be maintained in the announced today will be interpreted in type of security issued. Book-entry System. Some GSE Securities are held in definitive form, a manner fully consistent and uniform • with Treasury’s revised book-entry Unlike Treasury securities, GSE either indirectly through depositories or procedures and the commentary to Securities may contain an express intermediaries or directly by the Treasury’s final rule, except to the choice of law provision, under which investor in TREASURY DIRECT. No extent that HUD’s rule diverges from state law is chosen to govern the rights system currently exists for GSE Treasury’s rule due to the unique nature and obligations of the GSEs. To the Securities that is analogous to of the GSEs and their securities. extent the state law chosen in the TREASURY DIRECT. The book-entry regulation Security Documentation conflicts with Section 81.92 promulgated today shares many major the state law that would govern under similarities with Treasury’s regulation these regulations, the state law selected This section, addressing the law of the Treasury/Reserve Automated Debt in accordance with this regulation will governing the rights and obligations of Entry System (‘‘TRADES’’). Three of the prevail. the United States, the Federal Reserve similarities worthy of note are: III. Section-by-Section Comparison Banks, and the GSEs, and other • Under both the book-entry With Treasury’s Model interests, is modelled after 31 CFR regulations applicable to GSE securities 357.10 and 357.11. One difference and Treasury’s TRADES regulation, This section notes in a section-by- between HUD’s and Treasury’s there is federal preemption of state law section comparison, other differences provisions is that HUD’s rule recognizes with respect to the rights and between this book-entry regulation and that the GSEs use various forms of obligations of the United States and the Treasury’s TRADES regulation. documentation to establish the terms of 63946 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

GSE Securities, depending upon the additional requirements is modelled 1997. Given that Treasury’s rule was not type of security issued. HUD’s rule after 31 CFR 357.40. Subsection (b) on published until August 23, 1996, there makes clear the way in which such notice of attachment for GSE Securities would not have been sufficient time for documentation applies to the GSEs and is modelled after 31 CFR 357.44. HUD to go through notice and comment their securities. rulemaking and then proceed to publish Removal of 1 CFR part 462 a final rule with a January 1, 1997 Section 81.93 Freddie Mac’s current book-entry effective date. Therefore, the This section, addressing security regulation is codified at 1 CFR part 462. Department has determined that it is entitlements and interests, is modelled This regulation was promulgated prior unnecessary and contrary to the public after 31 CFR 357.12. HUD’s rule applies to the Financial Institutions Reform, interest to undergo separate notice and these provisions to the GSEs and their Recovery, and Enforcement Act of 1989, comment rulemaking on the specifics of securities. Pub. L. 101–73, (August 9, 1989). this adaptation of the Treasury rule Section 81.94 Section 731(c) of FIRREA accorded the before making this rule effective. As a Secretary of HUD general regulatory result, in accordance with 24 CFR part This section, addressing obligations of power over Freddie Mac. The 10, HUD is publishing this interim rule GSEs, is modelled after 31 CFR 357.13. Secretary’s general regulatory power for effect. HUD’s rule accounts for the possibility over Freddie Mac is currently codified In the interest of obtaining the fullest that the GSEs could make payments in section 1321 of FHEFSSA (12 U.S.C. participation possible in determining with respect to Book-entry GSE 4541). that the adaptation of Treasury’s rule is Securities that might be characterized as Since this regulation applies to both appropriate, the Department does invite other than principal or interest GSEs, it supersedes Freddie Mac’s public comment on the rule. The payments. current book-entry regulation codified at comments received within the 60-day Section 81.95 1 CFR Part 462. Thus, HUD’s rule comment period will be considered during development of a final rule that This section, addressing the authority removes Freddie Mac’s current book- of the Federal Reserve Banks, is entry regulation from the CFR pursuant will supersede this interim rule. modelled after 31 CFR 357.14. HUD’s to the Secretary’s general regulatory Impact on Small Entities power over Freddie Mac. rule specifically authorizes each Federal The Secretary, in accordance with the Reserve Bank to effect conversions Findings and Certifications Regulatory Flexibility Act (5 U.S.C. between Book-entry GSE Securities and Public Reporting Burden 605(b)), has reviewed and approved this Definitive GSE Securities where interim rule, and in so doing certifies conversion rights are available pursuant This interim rule contains no new that this interim rule will not have a to the applicable Securities information collection requirements that significant economic impact on a Documentation. would require review by the Office of substantial number of small entities. Section 81.96 Management and Budget under the This interim rule affects the operation of Paperwork Reduction Act of 1995 (42 two entities, Fannie Mae and Freddie This section, addressing withdrawal U.S.C. 3501–3520). of Book-entry GSE Securities eligible for Mac, neither of which is a small entity. conversion to definitive form, is Justification for Interim Rule Environmental Impact modelled after 31 CFR 306.117. HUD’s As discussed above in the Background This interim rule is exempt from the rule highlights the requirement that section, this rule is published as an requirement for an environmental conversion must be consistent with the interim rule based not only on the assessment under section 102(2)(C) of Securities Documentation. previous proposed rule issued by HUD the National Environmental Policy Act Section 81.97 on February 16, 1995, but also on the of 1969 (42 U.S.C. 4332), in accordance proposed and final rules issued by This section, addressing waiver of with HUD regulations at 24 CFR Treasury. Treasury’s final rule, regulations, is modelled after 31 CFR 50.19(c)(1), as revised by a final rule on published on August 23, 1996, needed 357.41. HUD’s rule makes clear that the September 27, 1996 (61 FR 50919). In relatively minor adaptations to apply Secretary of HUD may waive these accordance with 24 CFR 50.19(a), other appropriately to Fannie Mae and regulations. HUD traditionally has Federal environmental laws, as Freddie Mac. This interim rule makes consulted with the GSEs in the waiver described in 24 CFR 50.4, are not process. In accordance with section 106 those necessary changes. applicable to this interim rule. The Department generally publishes a of the Department of Housing and Urban Federalism Impact Development Reform Act of 1989 (42 rule for public comment before issuing U.S.C. 3535(q)), HUD publishes a notice a rule for effect, in accordance with its The General Counsel, as the each quarter indicating the waivers of regulations on rulemaking in 24 CFR Designated Official under section 6(a) of regulations granted during that quarter. part 10. However, prior public Executive Order 12612, Federalism, has procedure may be omitted if HUD determined that this interim rule’s Section 81.98 determines that it is ‘‘impracticable, preemption of State law to the extent This section, addressing liability of unnecessary, or contrary to the public that it applies the newly revised Article GSEs and Federal Reserve Banks, is interest.’’ (24 CFR 10.1) The essence of 8 of the Uniform Commercial Code has modelled after 31 CFR 357.42. HUD’s this rule has been the subject of notice sufficient effect on States to require rule reflects that some terms such as and comment in the form of the consideration of the impact of the rule ‘‘tender’’ and ‘‘transactions request Treasury proposed rule, and comments under the Order. The General Counsel form’’ used in Treasury’s rule do not on HUD’s proposed rule recommended has assessed this preemption in light of apply to Book-entry GSE Securities. that HUD’s rule follow Treasury’s rule. the principles, criteria, and To avoid dislocation in the securities requirements of the Executive Order and Section 81.99 market, it is imperative that these determined that it is not inconsistent This section is modelled after two regulations take effect at the same time with them. The policy does not impose Treasury regulations. Subsection (a) on as Treasury’s final rule, on January 1, additional costs or burdens on the States Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63947 and it does not affect the States’ ability List of Subjects which by the terms of its Security to discharge traditional State Documentation is available in either 1 CFR Part 462 governmental functions. definitive or book-entry form. Accounting, Banks, Banking, Entitlement Holder means a Person to This rule makes explicit the Securities. whose account an interest in a Book- preemption applicable to the rights and entry GSE Security is credited on the 24 CFR Part 81 obligations of the United States, the records of a Securities Intermediary. Federal Reserve Banks, and the GSEs Accounting, Federal Reserve System, * * * * * that was implicit under the prior rule. Mortgages, Reporting and recordkeeping Federal Reserve Bank Operating The rule continues to accommodate requirements, Securities. Circular means the publication issued State law, to the maximum extent Accordingly, for the reasons set out in by each Federal Reserve Bank that sets possible, given market methodologies. the preamble, under the authority of 42 forth the terms and conditions under Ultimately, as States proceed to adopt U.S.C. 3535(d), part 462 of title 1 of the which the Reserve Bank maintains the revised Article 8, the rule will Code of Federal Regulations and part 81 book-entry Securities accounts provide no greater preemption of State of title 24 of the Code of Federal (including Book-entry GSE Securities) law than under the prior rule. Regulations are amended as follows: and transfers book-entry Securities The rule is justified, despite the TITLE 1ÐGENERAL PROVISIONS (including Book-entry GSE Securities). preemption it effects, by the fact that the * * * * * CHAPTER IVÐMISCELLANEOUS GSE Security means any security or preemption is no greater than necessary AGENCIES to accommodate the nationwide obligation of Fannie Mae or Freddie application of the rule and the PART 462ÐFEDERAL HOME LOAN Mac issued under its respective Charter nationwide market for the GSE MORTGAGE CORPORATION (BOOK- Act in the form of a Definitive GSE Securities, as was the preemption under ENTRY REGULATIONS) Security or a Book-entry GSE Security. the book-entry rules this rule replaces. * * * * * It should be noted that section 304(d) of 1. 1 CFR part 462 is removed. Person, as used in subpart H, means the Fannie Mae Charter Act (12 U.S.C. TITLE 24—DEPARTMENT OF and includes an individual, corporation, 1719(d)) and section 306(g) of the HOUSING AND URBAN company, governmental entity, Freddie Mac Act (12 U.S.C. 1455(f)) DEVELOPMENT association, firm, partnership, trust, specifically provide for the exemption estate, representative, and any other of GSE securities from State securities PART 81ÐTHE SECRETARY OF HUD'S similar organization, but does not mean registration requirements (as well as the REGULATION OF THE FEDERAL or include the United States, a GSE, or registration requirements of the NATIONAL MORTGAGE ASSOCIATION a Federal Reserve Bank. Revised Article 8 has the same Securities and Exchange Commission). (FANNIE MAE) AND THE FEDERAL meaning as in 31 CFR 357.2. See also 15 U.S.C. 77r–1. HOME LOAN MORTGAGE CORPORATION (FREDDIE MAC) * * * * * Executive Order 12606, the Family Security means any mortgage 2. The authority citation for Part 81 participation certificate, note, bond, The General Counsel, as the continues to read as follows: debenture, evidence of indebtedness, Designated Official under Executive Authority: 12 U.S.C. 1451 et seq., 1716– collateral-trust certificate, transferable Order 12606, The Family, has 1723h, and 4501–4641; 42 U.S.C. 3535(d) and share, certificate of deposit for a determined that this interim rule does 3601–3619. security, or, in general, any interest or not have potential for significant impact 3. In § 81.2, paragraph (b) is amended instrument commonly known as a on family formation, maintenance, and by adding the following definitions, in ‘‘security.’’ general well-being, and, thus, is not appropriate alphabetical order location, Securities documentation means the subject to review under the order. No and by adding a new paragraph (c), to applicable statement of terms, trust significant change in existing HUD read as follows: indenture, securities agreement or other policies or programs will result from documents establishing the terms of a promulgation of this rule, as those § 81.2 Definitions. Book-entry GSE Security. policies and programs relate to family * * * * * * * * * * concerns. Book-entry GSE Security means a GSE Transfer message means an Security issued or maintained in the instruction of a Participant to a Federal Unfunded Mandates Reform Act Book-entry System. Reserve Bank to effect a transfer of a Book-entry System means the The Secretary, in accordance with the Book-entry Security (including a Book- automated book-entry system operated entry GSE Security) maintained in the Unfunded Mandates Reform Act of by the Federal Reserve Banks acting as 1995, 2 U.S.C. 1532, has reviewed this Book-entry System, as set forth in the fiscal agent for the GSEs, on which Federal Reserve Bank Operating interim rule before publication and by Book-entry GSE Securities are issued, Circulars. approving it certifies that this interim recorded, transferred and maintained in rule does not impose a Federal mandate * * * * * book-entry form. (c) Subpart H terms. Unless the that will result in the expenditure by * * * * * context requires otherwise, terms used State, local, and tribal governments, in Definitive GSE Security means a GSE in subpart H of this part that are not the aggregate, or by the private sector, of Security in engraved or printed form, or defined in this part, have the meanings $100 million or more in any one year. that is otherwise represented by a as set forth in 31 CFR 357.2. Definitions Catalog certificate. and terms used in 31 CFR part 357 * * * * * should read as though modified to There is no Catalog of Federal Eligible Book-entry GSE Security effectuate their application to the GSEs. Domestic Assistance number for the means a Book-entry GSE Security issued 4. Subpart H is revised to read as program affected by this interim rule. or maintained in the Book-entry System follows: 63948 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

Subpart HÐBook-Entry Procedures located. A security interest in a Security other limited interest in favor of any Sec. Entitlement that is in favor of a Federal Person except to the extent of any 81.91 Maintenance of GSE Securities. Reserve Bank from a Person that is not specific requirement of Federal law or 81.92 Law governing rights and obligations a Participant, and that is not recorded regulation or to the extent set forth in of United States, Federal Reserve Banks, on the books of a Federal Reserve Bank any specific agreement with the Federal and GSEs; rights of any Person against pursuant to § 81.93(c)(1), is governed by Reserve Bank on whose books the United States, Federal Reserve Banks, the law determined in the manner interest of the Participant is recorded. and GSEs; Law governing other interests. specified in paragraph (d) of this To the extent required by such law or 81.93 Creation of Participant’s Security Entitlement; security interests. section. regulation or set forth in an agreement 81.94 Obligations of GSEs; no adverse (c) If the jurisdiction specified in the with a Federal Reserve Bank, or the claims. first sentence of paragraph (b) of this Federal Reserve Bank Operating 81.95 Authority of Federal Reserve Banks. section is a State that has not adopted Circular, a security interest in a Security 81.96 Withdrawal of Eligible Book-entry Revised Article 8, then the law specified Entitlement that is in favor of a Federal GSE Securities for conversion to in paragraph (b) of this section shall be Reserve Bank, a GSE, or a Person may definitive form. the law of that State as though Revised be created and perfected by a Federal 81.97 Waiver of regulations. Article 8 had been adopted by that Reserve Bank marking its books to 81.98 Liability of GSEs and Federal Reserve State. record the security interest. Except as Banks. (d) To the extent not otherwise provided in paragraph (b) of this 81.99 Additional provisions. inconsistent with this subpart H, and section, a security interest in a Security Subpart HÐBook-Entry Procedures notwithstanding any provision in the Entitlement marked on the books of a Security Documentation setting forth a Federal Reserve Bank shall have priority § 81.91 Maintenance of GSE Securities. choice of law, the provisions set forth in over any other interest in the securities. A GSE Security may be maintained in 31 CFR 357.11 regarding law governing (2) In addition to the method the form of a Definitive GSE Security or other interests apply and shall be read provided in paragraph (c)(1) of this a Book-entry GSE Security. A Book- as though modified to effectuate the section, a security interest, including a entry GSE Security shall be maintained application of 31 CFR 357.11 to the security interest in favor of a Federal in the Book-entry System. GSEs. Reserve Bank, may be perfected by any method by which a security interest § 81.92 Law governing rights and § 81.93 Creation of Participant's Security may be perfected under applicable law obligations of United States, Federal Entitlement; security interests. as described in § 81.92(b) or (d). The Reserve Banks, and GSEs; rights of any (a) A Participant’s Security perfection, effect of perfection or non- Person against United States, Federal Entitlement is created when a Federal perfection and priority of a security Reserve Banks, and GSEs; Law governing Reserve Bank indicates by book-entry other interests. interest are governed by such applicable that a Book-entry GSE Security has been law. A security interest in favor of a (a) Except as provided in paragraph credited to a Participant’s Securities Federal Reserve Bank shall be treated as (b) of this section, the following rights Account. a security interest in favor of a clearing and obligations are governed solely by (b) A security interest in a Security corporation in all respects under such the Book-entry regulations contained in Entitlement of a Participant in favor of law, including with respect to the effect this subpart H, the Securities the United States to secure deposits of of perfection and priority of such Documentation (but not including any public money, including without security interest. A Federal Reserve choice of law provisions in such limitation deposits to the Treasury tax Bank Operating Circular shall be treated documentation), and Federal Reserve and loan accounts, or other security as a rule adopted by a clearing Bank Operating Circulars: interest in favor of the United States that corporation for such purposes. (1) The rights and obligations of the is required by Federal statute, United States, a GSE and the Federal regulation, or agreement, and that is § 81.94 Obligations of GSEs; no adverse Reserve Banks with respect to: marked on the books of a Federal claims. (i) A Book-entry GSE Security or Reserve Bank is thereby effected and (a) Except in the case of a security Security Entitlement; and perfected, and has priority over any interest in favor of the United States or (ii) The operation of the Book-entry other interest in the securities. Where a a Federal Reserve Bank or otherwise as System as it applies to GSE Securities; security interest in favor of the United provided in § 81.93(c)(1), for the and States in a Security Entitlement of a purposes of this subpart H, the GSE and (2) The rights of any Person, including Participant is marked on the books of a the Federal Reserve Banks shall treat the a Participant, against the United States, Federal Reserve Bank, such Reserve Participant to whose Securities Account a GSE and the Federal Reserve Banks Bank may rely, and is protected in an interest in a Book-entry GSE Security with respect to: relying, exclusively on the order of an has been credited as the person (i) A Book-entry GSE Security or authorized representative of the United exclusively entitled to issue a Transfer Security Entitlement; and States directing the transfer of the Message, to receive interest and other (ii) The operation of the Book-entry security. For purposes of this paragraph, payments with respect thereof and System applicable to GSE Securities; an ‘‘authorized representative of the otherwise to exercise all the rights and (b) A security interest in a Security United States’’ is the official designated powers with respect to such Security, Entitlement that is in favor of a Federal in the applicable regulations or notwithstanding any information or Reserve Bank from a Participant and agreement to which a Federal Reserve notice to the contrary. Neither the that is not recorded on the books of a Bank is a party, governing the security Federal Reserve Banks, the United Federal Reserve Bank pursuant to interest. States, nor a GSE is liable to a Person § 81.93(c)(1), is governed by the law (not (c)(1) A GSE, the United States, and asserting or having an adverse claim to including the conflict-of-law rules) of the Federal Reserve Banks have no a Security Entitlement or to a Book- the jurisdiction where the head office of obligation to agree to act on behalf of entry GSE Security in a Participant’s the Federal Reserve Bank maintaining any Person or to recognize the interest Securities Account, including any such the Participant’s Securities Account is of any transferee of a security interest or claim arising as a result of the transfer Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63949 or disposition of a Book-entry GSE Securities Accounts as directed by the unnecessary hardship, if such action is Security by a Federal Reserve Bank Participants; not inconsistent with law, does not pursuant to a Transfer Message that the (4) To effect conversions between adversely affect any substantial existing Federal Reserve Bank reasonably Book-entry GSE Securities and rights, and the Secretary is satisfied that believes to be genuine. Definitive GSE Securities with respect such action will not subject a GSE or the (b) The obligation of the GSE to make to those securities as to which United States to any substantial expense payments (including payments of conversion rights are available pursuant or liability. interest and principal) with respect to to the applicable Securities Book-entry GSE Securities is discharged Documentation; and § 81.98 Liability of GSEs and Federal at the time payment in the appropriate (5) To perform such other duties as Reserve Banks. amount is made as follows: fiscal agent as may be requested by the A GSE and the Federal Reserve Banks (1) Interest or other payments on GSE. may rely on the information provided in Book-entry GSE Securities is either (b) Each Federal Reserve Bank may a Transfer Message, and are not required credited by a Federal Reserve Bank to a issue Operating Circulars not to verify the information. A GSE and the Funds Account maintained at such inconsistent with this subpart H, Federal Reserve Banks shall not be Bank or otherwise paid as directed by governing the details of its handling of liable for any action taken in accordance the Participant. Book-entry GSE Securities, Security with the information set out in a (2) Book-entry GSE Securities are Entitlements, and the operation of the Transfer Message, or evidence redeemed in accordance with their book-entry system under this subpart H. submitted in support thereof. terms by a Federal Reserve Bank withdrawing the securities from the § 81.96 Withdrawal of Eligible Book-entry § 81.99 Additional provisions. Participant’s Securities Account in GSE Securities for conversion to definitive form. (a) Additional requirements. In any which they are maintained and by either case or any class of cases arising under crediting the amount of the redemption (a) Eligible Book-entry GSE Securities may be withdrawn from the Book-entry these regulations, a GSE may require proceeds, including both principal and such additional evidence and a bond of interest, where applicable, to a Funds System by requesting delivery of like Definitive GSE Securities. indemnity, with or without surety, as Account at such Bank or otherwise may in the judgment of the GSE be paying such principal and interest as (b) A Reserve bank shall, upon receipt of appropriate instructions to withdraw necessary for the protection of the directed by the Participant. No action by interests of the GSE. the Participant ordinarily is required in Eligible Book-entry GSE Securities from connection with the redemption of a book-entry in the Book-entry System, (b) Notice of attachment for GSE Book-entry GSE Security. convert such securities into Definitive Securities in Book-entry system. The GSE Securities and deliver them in interest of a debtor in a Security § 81.95 Authority of Federal Reserve accordance with such instructions. No Entitlement may be reached by a Banks. such conversion shall affect existing creditor only by legal process upon the (a) Each Federal Reserve Bank is interests in such GSE Securities. Securities Intermediary with whom the hereby authorized as fiscal agent of the (c) All requests for withdrawal of debtor’s securities account is GSEs to perform the following functions Eligible Book-entry GSE Securities must maintained, except where a Security with respect to the issuance of Book- be made prior to the maturity or date of Entitlement is maintained in the name entry GSE Securities offered and sold by call of the securities. of a secured party, in which case the a GSE to which this subpart H applies, (d) GSE Securities which are to be debtor’s interest may be reached by legal in accordance with the Securities delivered upon withdrawal may be process upon the secured party. These Documentation, Federal Reserve Bank issued in either registered or bearer regulations do not purport to establish Operating Circulars, this subpart H, and form, to the extent permitted by the whether a Federal Reserve Bank is procedures established by the Secretary applicable offering circular. required to honor an order or other consistent with these authorities: notice of attachment in any particular § 81.97 Waiver of regulations. (1) To service and maintain Book- case or class of cases. entry GSE Securities in accounts The Secretary reserves the right in the Dated: November 6, 1996. established for such purposes; Secretary’s discretion, to waive any (2) To make payments with respect to provision(s) of these regulations in any Henry G. Cisneros, such securities, as directed by the GSE; case or class of cases for the Secretary. (3) To effect transfer of Book-entry convenience of a GSE, the United States, [FR Doc. 96–30499 Filed 11–29–96; 8:45 am] GSE Securities between Participants’ or in order to relieve any person(s) of BILLING CODE 4210±32±P federal register December 2,1996 Monday Final Rule in TransportCategoryAirplaneCabins; Allowable CarbonDioxideConcentration Federal AviationAdministration Transportation Department of Part IV 63951 63952 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

DEPARTMENT OF TRANSPORTATION this rule, the term ‘‘cabin’’ is meant to cubic feet per minute for vehicles. Based include the passenger cabin, the flight on the ASHRAE calculations, this Federal Aviation Administration deck, lower lobe galleys, crew rest areas, equates to a CO2 limit of 1,000 parts per and any other areas occupied by million (PPM), or 0.1 percent, if the 14 CFR Part 25 passengers or crew members in a occupants have a low physical activity [Docket No. 27704, Amdt. No. 25±89] transport category airplane. level. As most of the airplane occupants are passengers who are not active, this Discussion RIN 2120±AD47 is a reasonable parallel. ASHRAE Carbon dioxide is the product of Allowable Carbon Dioxide standards such as the 0.1 percent CO2 normal human metabolism, which is the limit are frequently quoted in magazine Concentration in Transport Category predominant source in airplane cabins. Airplane Cabins and newspaper articles when reporting The CO2 concentration in the cabin on airliner cabin air quality. AGENCY: Federal Aviation depends on the ventilation rate, the As CO2 concentration in the air Administration (FAA), DOT. number of people present, and their increases, there is an increase in both ACTION: Final rule. individual rates of CO2 production, the rate and the depth of breathing, which varies with activity and (to a reaching twice the normal rate at 3 SUMMARY: This amendment revises the smaller degree) with diet and health. percent concentration. At 3 percent standards for maximum allowable Carbon dioxide is also generated by concentration, there is some discomfort; carbon dioxide (CO2) concentration in sublimation of dry ice used to cool food at higher concentrations, headache, occupied areas of transport category in the galleys, and to preserve certain malaise, and, occasionally, fatigue airplanes by reducing the maximum cargo carried in the cargo occur, and the air is reported by those allowable concentration from 3 percent compartments. The carbon dioxide affected as being stale. People can to 0.5 percent. This action is in response concentration level is frequently used as function for long periods of time at to a recommendation from the National an indication of general air quality. At levels of CO2 as high as 1 percent (as in Academy of Sciences to review the CO2 concentrations above a given level, nuclear submarines), but it is generally limit in airplane cabins, and provides a complaints of poor air quality or felt by ASHRAE that 0.1 percent is a cabin CO2 concentration level ‘‘stuffiness’’ begin to appear. better limit. This value, however, is representative of that recommended by The maximum CO2 limit of based on the dissipation of smoke and some authorities for buildings. § 25.831(b)(2) of the Federal Aviation odors and not on health considerations. EFFECTIVE DATE: January 2, 1997. Regulations (FAR) is 3 percent by As noted above, according to ASHRAE volume, sea level equivalent. This 3 FOR FURTHER INFORMATION CONTACT: Standard 62–1989, a steady-state CO2 percent limit was incorporated into Kristin L. Larson, FAA, Flight Test and concentration of 0.1 percent would § 4b.371 of the Civil Air Regulations require a fresh-air ventilation rate of 15 Systems Branch, ANM–111, Transport (CAR) by Amendment 4b6 on March 5, Airplane Directorate, Aircraft cubic feet per minute (cfm) per person. 1952. This limit was carried over into 14 In the previous edition of the standard Certification Service, 1601 Lind Avenue CFR part 25 when this part was codified SW., Renton, Washington 98055–4056; (62–1981), ASHRAE recommended a in 1965. This high limit was established limit of 0.5 percent for office buildings telephone (206) 227–1760, facsimile to allow for increases in the carbon (206) 227–1100. and other occupied spaces, but dioxide levels in the crew compartment suggested that 0.25 percent would SUPPLEMENTARY INFORMATION: to ensure that, in airplanes with built- provide an additional safety factor. The in carbon dioxide fire extinguishing Background ASHRAE standard is intended to be systems, safe carbon dioxide used as a comfort standard rather than This amendment is based on Notice of concentration levels would not be a health and safety standard. ASHRAE Proposed Rulemaking No. 94–14, exceeded in the occupied areas when has recognized that the 0.1 percent CO2 published in the Federal Register on combating fires in cargo compartments. concentration limit may not be May 2, 1994 (59 FR 22718). As The American Conference of appropriate for airliner cabins, and has discussed in that notice, this action Governmental Industrial Hygienists formed an aviation subcommittee, the reduces the maximum allowable carbon (ACGIH) has adopted a short-term charter of which is to develop a dioxide concentration level from 3 exposure limit (STEL) for CO2 of 30,000 transport airplane cabin air quality percent to 0.5 percent. parts per million (3 percent). The 3 standard. While this subcommittee is In October 1984, the Department of percent limit specified in part 25 may not an FAA advisory committee, Transportation was directed by therefore be satisfactory as a short-term industry often uses ASHRAE standards Congress (Public Law 98–466) to limit, but is inappropriate for a steady- in designing systems. The subcommittee commission the National Academy of state condition. However, the NAS will sponsor research studies to Sciences (NAS) to conduct an Committee notes in their report that this determine the quality of the ambient air independent study on the cabin air 3 percent limit is much higher than the and quantify the correlation between quality in transport category airplanes. limits adopted by the air conditioning measurable contaminants and passenger The NAS formed the Committee on industry for buildings and other types of perception of air quality. As noted Airliner Cabin Air Quality to study all interior environments, and recommends above, ASHRAE standards were safety aspects of airliner cabin air that the limit specified in part 25 be intended to be used for buildings rather quality, and submitted its report, ‘‘The revised to more closely match the than vehicles such as airplanes, and Airliner Cabin Environment—Air currently acceptable limits. The FAA they consider it appropriate to establish Quality And Safety,’’ to the FAA on concurs. a new standard for airplanes at this August 12, 1986. One of the In contrast to the 3 percent limit time. recommendations in the report relates to specified in part 25, the American The Occupational Safety and Health the allowable carbon dioxide (CO2) Society of Heating, Refrigerating, and Administration (OSHA), in § 1910.1000 concentration in the airplane cabin. Air-Conditioning Engineers (ASHRAE), of part 1910 (CFR 29), sets an interim This action is a result of that in their Standard 62–1989, recommends (transitional) limit for CO2 at 5,000 ppm recommendation. For the purposes of an outside air ventilation rate of 15 or 0.5 percent, with a final rule limit of Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63953

10,000 ppm or 1 percent, effective lower than that currently measured in mention suffering.’’ Two commenters December 31, 1993. The increase to 1 transport category airplanes. state that the FAA should perform tests percent is apparently in deference to Section 25.831(b)(2) currently reads, on existing airplanes. The FAA infers operators of commercial bakeries and ‘‘Carbon dioxide in excess of three from these comments that the breweries, both of which generate a percent . . . is considered hazardous in commenters are in favor of revising the significant amount of CO2 in their the case of crewmembers.’’ The health requirements to ensure acceptable air processes. The FAA does not believe it and comfort considerations discussed quality. Studies conducted by the FAA is appropriate to base the allowable CO2 earlier are equally valid for passengers. and others do not indicate that there is concentration in transport category Therefore, the FAA has removed the a health hazard associated with cabin airplanes on the needs of specific reference to crewmembers. In addition, air quality. As none of these manufacturing processes. Other § 25.831(b)(2) also specifies that, commenters suggest specific changes to commercial enterprises have no ‘‘Higher concentrations of carbon the proposal, there are no changes to the difficulty in meeting the existing OSHA dioxide may be allowed in crew final rule in response to the comments. limit of 0.5 percent. compartments if appropriate protective One commenter misread the proposal The American Conference of breathing equipment is available.’’ This as to the allowable concentration Governmental Industrial Hygienists, in sentence was incorporated when the 3 currently in the regulations and that its ‘‘Documentation of the Threshold percent limit was established in CAR proposed in the notice. This commenter Limit Values and Biological Exposure 4b.371 in 1952. As noted above, the states that the standards for cabin air Indices—Sixth Edition,’’ also origins of the 3 percent limit are quality should be better than the recommends 0.5 percent as a limit, but unclear, but it is likely that the limit standard set for buildings, because the ACGIH recommends this value as a was set at this high level to account for population density is higher in an time-weighted average limit for repeated the discharge of CO2 fire extinguishers airplane, and in an office building daily exposure by workers. The FAA is in the flight deck, cabin, or cargo people may exit periodically. While the adopting this value as a limit. A compartment. This thesis is supported commenter made no specific concentration limit of 0.5 percent is by the mention of protective breathing recommendations, the FAA infers that considered to be appropriate because in the existing rule. However, most CO2 the commenter advocates lower limits there are no documented safety or extinguishers have been replaced by than proposed in the notice. The FAA health benefits associated with the Halon or other types of fire does not concur that these factors justify establishment of a lower value. extinguishers. Further, the rule is not a requirement for a lower carbon intended to cover the short-duration rise dioxide concentration. The existing Copies of the pertinent documents in CO concentration that would standards are all based on a ventilation from ASHRAE, OSHA, and ACGIH have 2 accompany discharge of a fire rate per occupant. To meet the same been placed in the public docket for this extinguisher. Therefore, that sentence in requirements with a higher population rulemaking. § 25.831(b)(2) is removed because it is density, a greater volume of fresh air Cabin ventilation provides air for no longer considered necessary or ventilation is required. It is not clear dilution of airborne contaminants, and appropriate. how this concern can be addressed by supplies oxygen for passengers and Section 25.831(b)(1) specifies a limit the airline industry or the FAA when crew. Oxygen requirements for for carbon monoxide (CO) concentration the studies conducted indicate that the sedentary adults can be met with a of 1 part in 20,000 parts air (0.005 air quality in airplanes does not present fresh-air ventilation rate of only 0.24 percent). This limit is the same as a hazard to the health of the travelers. cubic feet per minute (CFM) per person. currently recommended by ASHRAE Two commenters state that the Ventilation rates for current transport and the Occupational Safety and Health proposed 0.5 percent carbon dioxide category airplanes vary from a low of Administration (OSHA), and therefore concentration limit is too high. One approximately 7 cfm per person (with this action does not change this limit. commenter suggests that the FAA ‘‘set a one or more air conditioning packs limit of 800 parts per million (ppm), the turned off for economy), to over 20 cfm Discussion of Comments same level proposed by the per person (which includes up to 50 Comments were received from foreign Occupational Safety and Health percent filtered, recirculated air). Thus, and domestic airplane manufacturers Administration for indoor air quality,’’ even at the lowest ventilation rates through their respective trade which is 0.08 percent. Another available on current airplanes, there is associations, foreign airworthiness commenter recommends that the FAA no significant reduction in the authorities, trade organizations adopt an airplane cabin carbon dioxide percentage of oxygen, or increase in the representing flight attendants and US maximum concentration of 0.1 percent. amount of water vapor in the cabin due and Canadian pilots, one US operator, Both commenters express concerns to respiration. However, the design an organization representing airline about the effect of higher carbon dioxide parameters for the ventilation systems passengers, and several individuals. levels and increased recirculation on the are driven by operation on the ground Two commenters support the spread of disease and on people with during hot days. Contamination of air proposed change as it appears in the respiratory difficulties. One commenter with CO2 varies inversely with the notice. Five commenters wrote to notes that concentrations above 0.1 ventilation rate, because CO2 production register dissatisfaction with the air percent may result in complications for by sedentary people is nearly constant. quality on airplanes, mentioning both persons with an existing respiratory In order to bring the maximum comfort for passengers and illnesses difficulty, noting that 12.4 million allowable carbon dioxide concentration believed to be associated with Americans have asthma. into concert with accepted modern inadequate fresh air flow. One Another commenter states that flight limits, this rule adopts a new maximum commenter urges the FAA to ‘‘make the attendants who are repeatedly exposed allowable carbon dioxide concentration changes necessary so that we can fly in to carbon dioxide levels above 0.1 of 0.5 percent. According to ASHRAE, reasonable health.’’ Another commenter percent develop a tolerance, while for sedentary people this concentration is of the opinion that ‘‘very poor passengers do not. Another commenter can be maintained by a fresh air flow recirculation of air in planes is costing states that flight attendants are at a rate of 2.25 cfm per person, which is a lot of money in medical terms, not to greater risk because of this same 63954 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations repeated exposure. The FAA does not airplane as are workers in an office. The same commenter expresses concur with these views. The Also, there are added stresses involved concern that the use of carbon dioxide documented studies contained in the in being in an airplane cabin. The cabin hand-held fire extinguishers in the docket for this rule indicate that the air pressure altitude is significantly above cabin could result in local quality currently present in the airliner sea level, usually at 6,000 to 8,000 feet. concentrations exceeding 0.5 percent, cabins is comparable to that found in The relative humidity is lower than is noting that the present Halon other indoor environments. The OSHA usually found in ground-based extinguishers might be replaced by recommendation proposed in the environments. There are unquantified carbon dioxide devices now that Federal Register on April 5, 1994 (59 FR stresses associated with being in a production of Halon is banned, and 16035), which has not been adopted at crowded airplane cabin. Many people suggests a higher short-term exposure this time, addresses the carbon dioxide experience anxiety from the mere fact limit. The FAA does not concur that this concentration as a comfort factor to be that they are aloft. While most of these is a justification for a higher limit. The used in determining the need to verify factors cannot be controlled, the FAA use of carbon dioxide fire extinguishers proper operation of heating and has determined that the present part 25 is not envisioned, although there are no ventilating equipment. Further, this limit on carbon dioxide concentration prohibitions against their use in proposal addresses non-industrial work does not reflect industry standards and airplanes. When Halon is no longer environments and specifically excludes should be reduced accordingly. available, the replacement extinguishers vehicles. A copy of the OSHA proposed One commenter suggests that the will be required to be safe in the amendment has been included in the average concentration should be limited concentrations predicted for use in docket for this rulemaking. There is no to 0.5 percent, but ‘‘a limit of 3 percent occupied areas. Further, the use of fire evidence that concentrations up to 0.5 by volume (sea level concentration) may extinguishers in the cabin is, by its percent present any health hazard in be allowed for short term durations.’’ nature, an emergency situation. This is terms of general health or the spread of The commenter points out that the 3 not, in the context of the previous disease. In the economic evaluation percent limit for short term durations paragraph, normal in-flight operations. conducted by the FAA, the higher costs corresponds to the short term exposure Therefore, there appears to be no need associated with requiring a carbon limit (STEL) adopted by the ACGIH, and for the higher limit on carbon dioxide. dioxide concentration limit below 0.5 having two limits should be similar to Two commenters state that the percent do not present a favorable cost/ the two limits on cabin ozone utilization of building criteria for benefit ratio and cannot be justified. concentration specified in § 25.832. establishing carbon dioxide Further, there appears to be no specific Again, the FAA does not concur. The concentration limits for airplane cabins concentration level, even at levels down adverse health and safety effects of is not appropriate. Both commenters to 0.1 percent, at which at least some ozone are defined in available literature add that the statement in the proposal passengers might not be affected. This and § 25.832 of the FAR addresses that that concentrations above 0.5 percent rule, which will be contained in the concern. There appears to be no reason are hazardous is not justifiable. The airworthiness requirements of part 25, is to phrase the two requirements FAA concurs with the general statement intended to provide safe flight and similarly. that carbon dioxide concentrations The FAA has determined, however, landing for transport category airplanes. above 0.5 percent may not be hazardous that some short term excursions to Because carbon dioxide in for most people. Many standards in use values higher than 0.5 percent at some today allow higher concentrations. As concentrations below 0.5 percent do not locations in the airplane may occur noted by one commenter, the World have adverse safety effects, the FAA has during normal, inflight operations when Health Organization considers 12,000 determined that a concentration limit of airplane pressurization and air ppm (1.2 percent) to be a safe level. In 0.5 percent provides a reasonable conditioning systems are controlling the any case, the final rule has been balance between cost and benefit, and environment in the cabin. One changed and no longer contains the provides a significant improvement over commenter notes that the area in close word ‘‘hazardous.’’ Both of these the existing allowable concentration. proximity to the galley may experience commenters note that the rule, as Several commenters note that the higher carbon dioxide levels because proposed, would limit carbon dioxide OSHA and ACGIH standards are for an meals are often cooled by dry ice, which concentrations in lower lobe galleys, average concentration over a specific releases gaseous carbon dioxide. accessible cargo compartments where time period. ACGIH, for instance, Another commenter states that cabin air animals are carried, cockpits, and other recommends 5,000 ppm (0.5 percent) as can be contaminated on the ground by occupied areas. They express concern a time-weighted average for a normal 8- exhaust ingestion or self ingestion that local carbon dioxide concentrations hour workday or a 40-hour workweek. during certain wind conditions. The in the galley areas where food is cooled They note in their 1991 report that FAA does not agree that this presents a with dry ice might exceed 0.5 percent. Australia, Germany, Sweden, and the problem. In one survey, conducted by The FAA concurs in part with these United Kingdom all recommend a time- the Harvard University School of Public comments. The ventilation requirements weighted value of 0.5 percent for carbon Health, carbon dioxide levels were associated with this rule change are dioxide concentration. OSHA’s limits measured during boarding and intended to address areas that are also reflect the average airborne deboarding operations. The typical normally occupied. Cargo compartments exposure in any 8-hour work shift of a levels reported were 2,000 to 2,550 accessible in flight, whether in all cargo 40-hour workweek. The FAA infers that ppm, or 0.2 to 0.25 percent, well below or ‘‘combi’’ airplanes with main deck the commenters advocate providing the 0.5 percent proposed by the FAA. cargo compartments, are not ‘‘normally both a time weighted and a short term However, the FAA does concur that it occupied.’’ The final rule has been concentration limit. The FAA does not is not appropriate for the certification changed to reflect this determination. concur that the carbon dioxide level standards to apply to operations on the One commenter disagrees with the should be averaged over the entire flight ground when the airplane systems are statement in the preamble of the for several reasons. Many flights exceed not operating (e.g., at the gate or during proposed rule that ‘‘This low ventilation eight hours in duration, and the ‘‘push-back’’). The final rule is changed rate is also sufficient to dissipate the occupants are not able to leave the to reflect this determination. water vapor * * *,’’ noting that water Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63955 buildup in insulation blankets is the existing concentration limit of 3 final rule has been changed to reflect significant with present airplane fresh percent for carbon dioxide is not this intent. Thus, the commenter’s air inflow rates, especially in hot day appropriate because many passengers statement does not alter the FAA’s ground conditions. The FAA concurs and crewmembers are adversely affected economic analysis. and the statement has been removed at that level. The lower levels adopted Another commenter states that the from the preamble. In stating this view, by this amendment will provide a FAA did not evaluate the possibility the commenter did not recommend any standard that, when met, will ensure that ground-air contamination (ingestion changes in the rule. that passengers and crewmembers, of other airplanes’ exhausts) may One commenter states that the term including those on all-cargo airplanes, temporarily push the CO2 level above ‘‘sea level equivalent’’ should be will not be subjected to levels of carbon the 0.5 percent limit. The FAA does not clarified. The commenter suggests that dioxide that would reduce their ability agree that this presents a problem. In the clarification include technical and/ to perform their assigned duties. There one survey, conducted by the Harvard or medical rationale, including are no costs associated with lowering University School of Public Health, CO2 referenced sources, and provide an the limit as proposed. levels were measured during boarding explanation of the methodology by With the exception of the changes and deboarding operations. The typical which this value is to be calculated. If noted above, this final rule is adopted levels reported were 0.2 percent to 0.25 this rationale is not provided, the as proposed in Notice 94–14. percent, well below the 0.5 percent in commenter states that the FAA should this rule. However, the FAA does Regulatory Evaluation delete the phrase. The FAA does not concur that it is not appropriate for the concur that the term ‘‘sea level Changes to Federal regulations must certification standards to apply to equivalent’’ is not defined, although the undergo several economic analyses. ground operations when the airplane definition appears in reference to First, Executive Order 12866 directs systems are not functioning. As a result, another gas. In FAA Advisory Circular Federal agencies to promulgate new the final rule has been changed to reflect 120–38, ‘‘Transport Category Airplanes regulations or modify existing this determination. Consequently, there Cabin Ozone Concentrations,’’ sea level regulations only if the potential benefits is no economic impact as a result of this equivalent is defined as ‘‘* ** to society justify its costs. Second, the remote possibility. concentration in ppmv referenced to Regulatory Flexibility Act of 1980 Two commenters state that if live standard conditions of 25° C and 760 requires agencies to analyze the animal cargo areas are included under millimeters of mercury pressure.’’ Based economic impact of regulatory changes the definition of ‘‘inhabited’’ areas, on this definition, and calculations on small entities. Finally, the Office of there would be considerable potential provided in the AC, the maximum Management and Budget directs costs. The FAA partly concurs with measured concentration, sea level agencies to assess the effects of these comments in that cargo equivalent, for a cabin altitude of 8,000 regulatory changes on international compartments accessible in flight, feet would be 0.5 percent multiplied by trade. In conducting these assessments, whether in all cargo or ‘‘combi’’ 0.74 (the ratio of air pressure at 8,000 the FAA has determined that this rule: airplanes with main deck cargo feet to air pressure at sea level), or 0.37 (1) will generate benefits exceeding its compartments, are not normally percent. Values of this ratio for other costs and is not ‘‘significant’’ as defined occupied and the final rule has been cabin altitudes are provided in the AC. in Executive Order 12866; (2) is not changed to reflect this determination. As the term sea level equivalent is ‘‘significant’’ as defined in DOT’s As a result, there is no economic impact defined, the rule is adopted as Policies and Procedures; (3) will not from excluding live animal cargo areas proposed. have a significant impact on a from this rule. The same commenter also notes that substantial number of small entities; Costs the statement in the preamble that and (4) will not constitute a barrier to control of carbon dioxide buildup due international trade. These analyses, Airplane cabin CO2 levels can be to respiration is the factor that dictates available in the docket, are summarized reliably calculated from the number of the design parameters for ventilation below, following FAA’s disposition of passengers and the ventilation rate. In systems is incorrect. Operation on the comments on the economic aspects of addition, engineering analyses have ground during high ambient the NPRM. determined the amount of fuel used to temperatures generally dictates the provide a unit ventilation rate. These ventilation system design parameters. Response to Comments functional relationships allow the The FAA concurs and the preamble has One commenter calculates that it calculation of the costs to maintain a been changed accordingly. would cost about $0.076 per person per given cabin CO2 level. The FAA One commenter recommends that the hour to provide 100 percent fresh air in estimates that the 3 percent CO2 limit new standards for carbon dioxide the cabin of a typical 300-seat widebody under the current rule costs about 0.27 concentration not be applied to all-cargo airplane. The FAA disagrees with this cents per person per hour while the new airplanes. The commenter notes that commenter and estimates that the cost 0.5 percent limit will cost about 1.7 measured carbon dioxide levels on the of 100 percent fresh air would be $0.095 cents per person per hour. Thus, the flight decks of these airplanes are well per person per hour. amended limit constitutes a 1.43 cent below both the current standard and Another commenter states that the increase per person per hour, or about that proposed in Notice 94–14. The FAA did not account for the potential $4,475 per (newly certificated) airplane commenter goes on to state that costs of applying the rule to all per year. lowering the limit on carbon dioxide is occupiable sections of the airplane In point of fact, however, the a comfort issue, and would place a because it evaluated only the passenger ventilation rates in current transport burden on the manufacturers of cabin area and ignored the flight deck category airplanes currently maintain transport category airplanes that is not and lower lobe galleys. The FAA cabin CO2 levels below 0.5 percent. As commensurate with any safety benefit concurs in part with this comment. The the FAA expects that the minimum that might result. The FAA does not carbon dioxide concentration ventilation rates of future aircraft concur. As noted elsewhere in this requirements are intended to apply to designs will also maintain CO2 levels preamble, the FAA has determined that areas that are normally occupied. The below 0.5 percent in order to control 63956 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations odors, temperature, water vapor, etc., no The final rule would affect a significant adverse effect on actual incremental costs or benefits will manufacturers of transport category competition, the FAA has determined result from the rule change. However, airplanes produced under future new that this final rule is not significant codification of this limit will ensure that airplane type certificates. For under Executive Order 12866. In future designs maintain the 0.5 percent manufacturers, Order 2100.14A defines addition, the FAA has determined that level. a small entity as one with 75 or fewer this action is not significant as defined employees. Since no part 25 airplane in Department of Transportation Benefits manufacturer has 75 or fewer Regulatory Policies and Procedures (44

Although outdoor air contains CO2 at employees, the rule would not have a FR 11034, February 26, 1979). Since no significant economic impact on a the 0.03 percent level, CO2 may produce actual incremental costs are expected to respiratory center stimulation, mild substantial number of small entities. be incurred to comply with the narcotic effects, and asphyxiation under International Trade Impact Assessment requirements of this rule, the FAA high levels and high exposure duration. certifies, under the criteria of the As the certification rules apply to At concentrations of 2 to 3 percent, CO Regulatory Flexibility Act, that this 2 both foreign and domestic can produce headaches, breathing regulation will not have a significant manufacturers that market airplanes in difficulty, and increases in blood economic impact, positive or negative, the United States, neither group will pressure and pulse. By comparison, no on a substantial number of small receive a competitive advantage. As no entities. A copy of the regulatory ill-effects have been observed at the 0.5 incremental compliance costs are percent level. evaluation prepared for this final rule expected, there will be no competitive has been placed in the public docket. A Cost-Benefit Comparison trade disadvantage or advantage for U.S. copy may be obtained from the person manufacturers in foreign markets or for From a strict cost-benefit evaluation identified under the caption, FOR foreign manufacturers in the United FURTHER INFORMATION CONTACT. of the rule change itself, isolated from States. actual practice, the FAA concludes that List of Subjects in 14 CFR Part 25 it would cost about 1.43 cents per Federalism Implications person per hour to increase the The regulations adopted herein will Aircraft, Aviation safety, Reporting and recordkeeping requirements. ventilation to reduce cabin CO2 levels not have substantial direct effects on the from 3 percent to 0.5 percent. By States, on the relationship between the Adoption of the Amendment comparison, this reduction eliminates national government and the States, or In consideration of the foregoing, the the cabin CO2 levels known to produce on the distribution of power and headaches, breathing difficulty, and responsibilities among the various Federal Aviation Administration (FAA) increases in blood pressure and pulse. levels of government. Therefore, in amends 14 CFR part 25 of the Federal While no precise economic value has accordance with Executive Order 12612, Aviation Regulations (FAR) as follows: been assigned to the benefit from it is determined that this final rule will PART 25ÐAIRWORTHINESS not have sufficient federalism avoiding these ill effects, the FAA has STANDARDS: TRANSPORT implications to warrant the preparation determined that they are worth more CATEGORY AIRPLANES than 1.43 cents per person per hour. of a Federalism Assessment. Regulatory Flexibility Determination International Civil Aviation 1. The authority citation for part 25 Organization (ICAO) and Joint Aviation continues to read as follows: The Regulatory Flexibility Act of 1980 Regulations Authority: 49 U.S.C. 106(g), 40113, 44701– (RFA) was enacted by Congress to In keeping with U.S. obligations 44702, 44704. ensure that small entities are not under the Convention on International 2. Section 25.831 is amended by unnecessarily or disproportionately Civil Aviation , it is FAA policy to burdened by Government regulations. revising paragraph (b)(2) to read as comply with ICAO Standards and follows: The RFA requires a Regulatory Recommended Practices to the Flexibility Analysis if a proposed or maximum extent practicable. The FAA § 25.831 Ventilation. final rule would have a significant has determined that this rule does not * * * * * economic impact, either detrimental or conflict with any international (b) * * * beneficial, on a substantial number of agreement of the United States. small entities. FAA Order 2100.14A, (2) Carbon dioxide concentration Regulatory Flexibility Criteria and Paperwork Reduction Act during flight must be shown not to Guidance, prescribes standards for exceed 0.5 percent by volume (sea level In accordance with the Paperwork equivalent) in compartments normally complying with RFA review Reduction Act of 1990 (44 U.S.C. 3501 requirements in FAA rulemaking occupied by passengers or et seq.), there are no reporting or crewmembers. actions. The Order defines ‘‘small recordkeeping requirements associated entities’’ in terms of size, ‘‘significant with this rule. * * * * * economic impact’’ in terms of Issued in Washington, D.C., on November annualized costs, and ‘‘substantial Conclusion 21, 1996. number’’ as eleven or more and which Because the revised standards for Linda Hall Daschle, is more than one-third of the small maximum allowable carbon dioxide Acting Administrator. entities subject to the proposed or final concentration are not expected to result [FR Doc. 96–30525 Filed 11–29–96; 8:45 am] rule. in a substantial economic cost or have BILLING CODE 4910±13±P federal register December 2,1996 Monday Final Rule Requirements forSecuritiesTransactions; Recordkeeping andConfirmation 12 CFRPart Office oftheComptrollerCurrency Treasury Department ofthe Part V 63957 63958 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

DEPARTMENT OF THE TREASURY customers’ securities transactions.1 The Section-by-Section Discussion OCC amended part 12 on December 31, Authority, Purpose, and Scope (§ 12.1) Office of the Comptroller of the 1979 (44 FR 77137) to include Currency additional suggestions recommended by The proposal revised and expanded commenters, and the part became the scope section to clarify the securities 12 CFR Part 12 effective on January 1, 1980. The Board transactions to which part 12 applies of Governors of the Federal Reserve and identify the types of transactions [Docket No. 96±25] System (FRB) and the Federal Deposit that are subject to other regulatory Insurance Corporation (FDIC) also requirements. Generally, any national RIN 1557±AB42 adopted regulations substantially bank effecting a securities transaction identical to part 12 in 1979. See 12 CFR for a customer is subject to the Recordkeeping and Confirmation 208.8(k), 44 FR 43258 (July 24, 1979) requirements of part 12, unless the Requirements for Securities transaction specifically is excepted. For Transactions (FRB regulation); 12 CFR part 344, 44 FR 43261 (July 24, 1979) (FDIC example, part 12 requirements apply to transactions in mutual funds as well as AGENCY: Office of the Comptroller of the regulation). other securities. Currency, Treasury. On December 22, 1995, the OCC National banks conducting ACTION: Final rule. published a notice of proposed government securities transactions for rulemaking (60 FR 66517) (proposal) to SUMMARY: The Office of the Comptroller their customers also are within the revise 12 CFR part 12, the OCC’s 2 of the Currency (OCC) is amending its scope of part 12. Consistent with Recordkeeping and Confirmation rule that prescribes recordkeeping and regulations issued pursuant to the Requirements for Securities confirmation requirements for securities Government Securities Act of 1986, 15 Transactions regulation. The purpose of transactions. The final rule is another U.S.C. 78o–5, part 12 (§ 12.1(c)(2)(ii)) the proposal was to modernize part 12, part of the OCC’s Regulation Review exempts a national bank that conducts address various market developments Program to update and streamline OCC fewer than 500 government securities regulations and eliminate unnecessary and regulatory changes, and reduce brokerage transactions per year from regulatory costs and other burdens. The regulatory burden, where possible. The complying with the recordkeeping FRB published a substantively similar requirements under § 12.3. See 17 CFR final rule reorganizes the OCC’s 3 regulation by placing related subjects yet somewhat differently worded 401.3(a)(2)(i) and 404.4(a). This together, clarifies areas where the rule proposed rule on December 26, 1995. exemption does not apply to was confusing, incorporates significant See 60 FR 66759. The FDIC published government securities dealer OCC interpretive positions, and updates an advance notice of proposed transactions by national banks, various provisions to address market rulemaking on May 24, 1996, soliciting however. developments and regulatory changes comment on issues similar to those The ‘‘scope’’ section (§ 12.1(c)(1)) also by other regulators that affect raised in the OCC’s and FRB’s proposed clarifies that a national bank’s requirements for recordkeeping and rules, but has not yet proposed a rule. transactions in municipal securities that confirmation of securities transactions See 61 FR 26135. are not subject to the Municipal by national banks. Securities Rulemaking Board’s (MSRB) Comments Received and Changes Made rules, are subject to part 12.4 Thus, EFFECTIVE DATE: December 31, 1996. The OCC received ten comments on FOR FURTHER INFORMATION CONTACT: 2 The Department of the Treasury, under its Suzette H. Greco, Senior Attorney, the proposal. The comment letters authority pursuant to the Government Securities Securities and Corporate Practices included eight from banks and bank Act of 1986 (GSA), 15 U.S.C. 78o–5, has issued holding companies, one from a trade regulations in 17 CFR parts 400 through 405, 449, Division (202) 874–5210; Joseph W. and 450, applicable to many government securities Malott, National Bank Examiner, Capital association, and one on behalf of a transactions by national banks (GSA regulations). Markets Division (202) 874–5070; mutual fund sponsor and distributor. The GSA regulations define the terms ‘‘government William L. Granovsky, National Bank Commenters generally supported the securities broker’’ and ‘‘government securities proposal, but several commenters dealer’’ to include financial institutions. See 17 CFR Examiner, Fiduciary Activities (202) 400.3 (k) and (l). Part 404 of the GSA regulations 874–4861. requested changes. The OCC carefully provides specific recordkeeping requirements for considered each of the comments and government securities brokers and dealers that are SUPPLEMENTARY INFORMATION: has made a number of changes in financial institutions. See 17 CFR 404.4. Background response to the comments received. 3 National banks, because they are subject to part 12 recordkeeping requirements, are not required to The OCC adopted 12 CFR part 12 on Overall, the final rule adopts most of follow the recordkeeping requirements of the GSA July 24, 1979 (44 FR 43252) to require the changes to part 12 as proposed by regulations at 17 CFR 404.2 and 404.3. See 17 CFR 404.4(a). National banks, however, must follow national banks to establish uniform the OCC. The section-by-section other recordkeeping requirements under the GSA procedures and records relating to the discussion of this preamble identifies regulations. See 17 CFR 404.4 (a)(3), (b), and 450.4 handling of securities transactions for and discusses the comments received (c), (d), and (f). Part 12 confirmation requirements customers. The requirements reflected and changes made to certain sections of apply to all government securities transactions by national banks. in part the recommendations of the the proposal. A derivation table 4 The MSRB adopts rules with respect to Securities and Exchange Commission’s identifying sections of former part 12 transactions in ‘‘municipal securities’’ effected by (SEC) Final Report of the Securities and changed by the final rule is included at brokers, dealers, and ‘‘municipal securities Exchange Commission on Bank the end of this preamble. dealers.’’ See 15 U.S.C. 78o–4; Rules of the MSRB, MSRB Manual (CCH) ¶ 3501 et seq. As defined in Securities Activities (June 30, 1977). Part the Exchange Act, a ‘‘municipal securities dealer’’ 12’s recordkeeping and confirmation 1 Brokers and dealers generally must register with includes a bank, as well as a ‘‘separately requirements were patterned after the the SEC under the Securities Exchange Act of 1934. identifiable department or division of a bank,’’ that SEC’s rules applicable to broker/dealers See 15 U.S.C. 78o(a)(1). Banks are excluded from is engaged in the business of buying and selling the definitions of ‘‘broker’’ and ‘‘dealer’’ and thus municipal securities for its own account through a and were intended to serve similar are not subject to the registration provisions. See 15 broker or otherwise. See 15 U.S.C. 78c(a)(30). Under purposes for banks involved in effecting U.S.C. 78c(a) (4) and (5). the SEC’s regulatory requirements, however, a bank Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63959 under § 12.1(c)(2)(iii), transactions in dealer pursuant to an arrangement itself where the bank as trustee is the municipal securities conducted by a between the bank and a registered shareholder of record of the securities national bank registered with the SEC as broker/dealer, part 12 requirements do being bought and sold. Generally, a a ‘‘municipal securities dealer’’ are not apply. However, if the dual written agreement between the trustee exempt from part 12. However, employee is performing work for and and the participants governs these plans municipal securities brokerage under control of the bank, then the part and dictates the type of notifications transactions by a national bank not 12 requirements do apply. See required. The primary law governing registered as a municipal securities Interpretive Letter No. 680 (July 26, employee benefit plans and trusts is the dealer are subject to part 12 1995), reprinted in [1994–95 Transfer Employee Retirement Income Security requirements. Binder] Fed. Banking L. Rep. (CCH) Act of 1974 (ERISA), 29 U.S.C. 1001 et The proposal’s ‘‘scope’’ section 83628. seq. The final rule clarifies that the provided exceptions from part 12 Accordingly, the final rule adds a new definition of customer does not include requirements for: (1) Banks conducting provision (§ 12.1(c)(2)(v)) clarifying that a bank as trustee acting as shareholder a small number of securities part 12 does not apply to securities of record for the purchase and sale of transactions; (2) certain government transactions effected by a broker or securities. securities transactions; (3) certain dealer registered with the SEC, municipal securities transactions; and including securities transactions Several commenters raised questions (4) securities transactions conducted by effected by a bank employee when the about the proposed definition of a foreign branch of a national bank. The employee is acting as an employee of an investment discretion. The proposal, proposal also clarified that SEC-registered broker/dealer. The final like the former rule, tracked the notwithstanding the exceptions from rule also adopts the amendments to the definition of ‘‘investment discretion’’ in part 12, the OCC expects a national bank scope section as proposed and revises the Securities Exchange Act of 1934, 15 conducting securities transactions for its § 12.1(c)(1) to state more clearly that U.S.C. 78c(a)(35). Under this definition, customers to maintain effective systems both part 12 and 12 CFR part 9 govern a bank exercises investment discretion of records and controls to ensure safe fiduciary transactions effected by a with respect to an account if the bank and sound operations. national bank.6 directly or indirectly: (1) Is authorized Most commenters supported the to determine what securities or other Definitions (§ 12.2) clarifications to the proposed scope property to purchase or sell, or (2) section. With respect to the scope The proposal added new definitions makes decisions as to what securities or section as discussed in the proposal’s of asset-backed security, completion of other property to purchase or sell even preamble, two commenters requested the transaction, crossing of buy and sell though some other person may have further clarification. One commenter orders, debt security, government responsibility for these investment requested clarification of whether part security, and municipal security, and decisions. The significance of a finding 12 requires a national bank to provide modified the definitions of collective under part 12 that a bank exercises a confirmation of a trade placed by a investment fund, customer, investment investment discretion is that the bank customer directly with a registered discretion, periodic plan, and security. then may choose from more options broker/dealer for settlement in the Several commenters asked the OCC to when providing a customer with notice customer’s custodial account. In these make clarifications. One commenter of a transaction. For example, instead of circumstances, a national bank need not questioned whether the definition of complying with the generally applicable provide a confirmation if the customer customer includes a bank when that rule requiring a bank to provide receives a confirmation from the bank acts as the fiduciary of an account notification at or before completion of registered broker/dealer. and effects transactions for that account. the transaction, a bank exercising Another commenter suggested That is not the intent of part 12. While investment discretion in an agency clarifying that part 12 generally would both the former rule and the proposal capacity may send an itemized not apply when dual employees are define customer to include any person statement to a customer every three involved in a networking operation with or account (including fiduciary months. accounts) for which a national bank a registered broker/dealer. As noted in Three commenters recommended makes or participates in making the the proposal’s preamble, the OCC revising the part 12 definition of purchase or sale of securities, the recognizes that a national bank may investment discretion to conform to the account is the customer when the bank enter into various arrangements with proposed definition of investment acts as fiduciary and has investment registered broker/dealers that permit the discretion in 12 CFR part 9, the OCC’s discretion over the account. broker/dealers to operate on the bank’s regulation governing fiduciary powers Accordingly, the final rule clarifies that premises. Part 12 generally does not of national banks.7 The final rule does part 12 does not require that the bank apply to securities transactions executed not substantively change the former part by these registered broker/dealers for notify itself of a transaction. Another commenter asked whether, 12 definition of investment discretion. their customers. As registered broker/ for purposes of the notification Given that the broader definition of the dealers, they already are subject to the requirements for transactions involving term in part 12 serves to reduce burden SEC’s recordkeeping and confirmation periodic plans or employee benefit on national banks by providing more rules.5 The OCC agrees that when a dual plans, the customer is the plan trustee flexibility to banks in giving notices of employee is performing work for and or the plan participant. The OCC does securities transactions, the OCC believes under the control of a registered broker/ not intend part 12 to require a bank it appropriate to retain the definition as acting as a trustee of an employee proposed. The OCC will review the need not register as a ‘‘municipal securities broker.’’ benefit plan to provide notifications to definition of investment discretion used See 15 U.S.C. 78c(a) (4) and (31). in part 9 in the course of adopting 5 As noted in the proposal, however, if the bank is using this registered broker/dealer solely to clear 6 The final rule also changes the caption of amendments to that rule. securities transactions effected by the bank for the § 12.1(c)(2) from ‘‘exemptions’’ to ‘‘exceptions’’ to bank’s own customers, then the requirements of better reflect that § 12.1(c)(2) does not necessarily 7 The OCC published a notice of proposed part 12 do apply to the bank because the bank has exempt the specified transactions from all part 12 rulemaking on 12 CFR part 9 on December 21, 1995. executed the transactions. requirements. See 60 FR 66163. 63960 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

Three commenters asked the OCC to intended to give banks flexibility in the provision allowing a bank additional clarify that the definition of periodic maintenance of records required by part time. However, the final rule changes plan also includes cash management 12. The OCC requested comments the length of the additional time sweep services, such as arrangements addressing whether and in what manner allowed from five days to one day from where funds are transferred or ‘‘swept’’ banks rely upon this provision. The receipt by the bank of the registered out of a bank to purchase money market OCC received two comments on this broker/dealer’s confirmation. The mutual funds. Both the former and issue. The commenters suggested that former regulation’s five-day period was proposed rules define periodic plan to the OCC clarify the extent to which a based on the industry practice of having include dividend reinvestment plans, national bank may use electronic or the settlement of a securities transaction automatic investment plans, employee automated records. on the fifth business day after the trade stock purchase plans, and other plans The OCC recognizes that better and day (T+5). The industry now must settle where the bank has written authority to more affordable technology will most securities transactions by the third act as agent for the customer to purchase increase banks’ interest in replacing business day after the trade day (T+3). and sell specific securities, in specific paper files with electronic data bases Given the advances in electronic amounts, at specific time intervals. Cash and filing systems. The OCC has no technology for providing confirmations management services, whereby a bank objection to a national bank using an and market developments, the OCC will allow a depositor to transfer or electronic or automated recordkeeping believes one additional business day is ‘‘sweep’’ all funds or all funds above a system as long as the records are sufficient for providing a customer a specified amount from deposits into maintained in conformity with § 12.3(b). notification in this manner. investment vehicles, often money Accordingly, the final rule specifically Accordingly, the final rule adopts this market mutual funds, on a daily basis permits the use of electronic or change in the time of notification when and to automatically redeem securities automated records as long as the records a bank opts to provide notification by as needed, are not expressly included in are easily retrievable and readily using a copy of a registered broker/ the former or proposed rules. available for inspection and the bank dealer’s confirmation. The OCC agrees with the views of the has the capability to reproduce the The OCC also requested comments on commenters that the definition of records in hard copy form. the adoption of the timeframe at or periodic plan encompasses cash before completion of the transaction for Content and Time of Customer management sweep services. Many a national bank to provide a written Notification (§ 12.4) banks today engage in cash management notification. Sending the notification at sweep services to allow customers to Under the proposal a national bank or before completion of the transaction earn an investment return on otherwise may give or send the required written is consistent with the SEC’s broker/ idle cash balances. The types of cash notification to a customer for whom the dealer confirmation rule. See Securities management services banks offer vary bank has effected a securities Exchange Act of 1934 Rule 10b–10, 17 and banks should take care to comply transaction by providing either (1) a CFR 240.10b–10(a) (SEC Rule 10b–10). with all applicable requirements with copy of a registered broker/dealer’s The SEC also defines completion of the respect to any particular arrangement. confirmation prepared for the bank and transaction similar to the proposed part Accordingly, the final rule revises the a statement regarding remuneration, or 12 definition, generally meaning definition of periodic plan to (2) a bank-generated confirmation payment of funds and delivery of the specifically include these services. The containing essentially the same securities. See 17 CFR 240.10b–10(d)(2). final rule also adopts a separate information as the SEC requires for The OCC received four comments on timeframe for notifications for cash registered broker/dealer confirmations. this issue. One commenter supported management sweep services, as The written notification conveys the adoption of this timeframe and two discussed in § 12.5. information to the bank’s customers commenters expressed concern about a Finally, one commenter urged the about their securities transactions, bank’s ability to provide the information OCC to retain the exception in the thereby giving them an opportunity to so quickly. Another commenter noted definition of security for letters of credit verify the terms of their transactions and that in a typical custody arrangement, and other forms of bank indebtedness evaluate the accuracy of the bank’s customers employ an outside broker incurred in the ordinary course of execution. (e.g., a registered broker/dealer) to make business. The proposed definition The proposal did not include former investments for them and the bank does closely tracks the definition of security part 12’s provision permitting an not process any activity on its in the Securities Exchange Act of 1934, additional five business days for a customer’s account records until it 15 U.S.C. 78c(a)(10), which does not national bank to provide notification to receives authorization from the explicitly contain this exception. a customer by using a copy of the registered broker/dealer. However, the However, the final rule retains this registered broker/dealer’s confirmation commenter interpreted the proposal to exception, because, upon further to the bank. The OCC, however, mean that the bank must provide the consideration, the OCC has concluded specifically requested comments on the customer a notification within the T+3 that this exception avoids extending the need for additional time by a national timeframe. With respect to this last regulation’s coverage to transactions bank opting to provide notification by comment, the OCC notes that part 12 where the requirements of part 12 are using a copy of the registered broker/ does not apply when a registered unnecessary. dealer’s confirmation. broker/dealer is effecting the securities The OCC received four comments on transactions and the bank is acting only Recordkeeping (§ 12.3) this issue. One commenter opposed as custodian. The proposal provided that a national giving a bank additional time and stated The final rule adopts the timeframe at bank may maintain the records required that it was not necessary and not or before completion of the transaction by § 12.3(a) in any manner, if the conducive to a uniform regulatory in order to reflect current securities records clearly and accurately reflect the environment. Three commenters industry practice. This timeframe information required and provide an favored continuing to allow a bank requires a national bank to give or send adequate basis for auditing the additional time. In light of the notification of its customers’ securities information (§ 12.3(b)). This provision is comments, the final rule retains the transactions in the same way as a Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63961 nonbank registered broker/dealer. The customer’s request ‘‘within a reasonable Finally, in response to several OCC believes this change promotes time’’ is sufficient. The OCC agrees with commenters’ suggestions for stylistic consistency among regulators and keeps the commenters. Accordingly, the final changes intended to reduce confusion banks on a level playing field with rule does not contain this provision. and enhance readability, the final rule nonbank registered broker/dealers. The The proposal included a new changes the name of the section, some OCC also believes that the additional provision concerning the disclosure of introductory language, and the captions. day to provide the confirmation when other remuneration similar to that in the The final rule also reverses the order of using a copy of a registered broker/ SEC’s Rule 10b–10. See 17 CFR the notification options of § 12.4(a) and dealer’s confirmation will allow a bank 240.10b–10(a)(2)(i)(D). Under proposed § 12.4(b) to emphasize the information a adequate time to provide a notification. § 12.4(b)(6) (renumbered in the final bank must provide its customer in a Further, the OCC notes that the final rule as § 12.4(a)(6)), a national bank may notification regardless of which type of rule only requires the bank to give or choose not to disclose the source and notification under this section the bank send the notification by the settlement amount of other remuneration to the elects to provide. of the securities transaction, i.e. the bank, if the bank: (1) Informs the Notification by Agreement; Alternative completion of the transaction, and not customer in writing that it has received Forms and Times of Notification (§ 12.5) that the customer must receive the or will receive other remuneration; and notification by settlement. (2) the bank states that it will furnish In addition to the notification Consistent with SEC Rule 10b–10, the the source and amount of the other requirements in § 12.4, the proposal also proposal added § 12.4(b) (8), (9), (10), remuneration upon the customer’s authorized alternative forms and times and (11), requiring disclosure of yield written request. of notification under § 12.5 for certain specific types of transactions. These information on debt securities The OCC received two comments were: (1) Transactions in which the (renumbered in the final rule as § 12.4(a) supporting the inclusion of this bank exercises investment discretion in (8), (9), (10), and (11)). The proposal provision but suggesting further other than an agency capacity; (2) also added § 12.4(b)(12) requiring clarification. In light of these comments, transactions in which the bank exercises disclosure that a debt security has not the final rule adopts the provisions on investment discretion in an agency been rated by a nationally recognized remuneration disclosure as proposed capacity; (3) transactions for a collective statistical rating organization, if that is with the following clarification. First, the case (renumbered in the final rule as investment fund; and (4) transactions the final rule clarifies that a notification for a periodic plan. The OCC asked § 12.4(a)(12)). by means of the written statements The OCC sought comments on the commenters to address the continuing permitted by § 12.4(a)(6) is available applicability and need for these need for the alternative forms of only in lieu of disclosing the source and disclosure requirements. Both notification. commenters that addressed this issue amount of other remuneration, not in Two commenters addressed this focused on the requirement for unrated lieu of disclosing the remuneration paid issue. One commenter expressed debt securities, and both supported by the customer. Second, § 12.4(a)(6) support for the continued inclusion of including these requirements. One reflects that the bank will furnish the alternative forms of notification. commenter stated that its trade information pursuant to a customer’s Another commenter suggested that confirmation already shows ‘‘NR’’ for request within a reasonable time. § 12.5(c) (regarding notifications for unrated securities. The OCC recognizes Proposed § 12.4(c), captioned collective investment fund transactions) that there are a variety of situations ‘‘Notification by agreement,’’ retains the was unnecessary because banks follow where certain securities may be unrated. option in the former rule for the bank the requirements of 12 CFR part 9, the The disclosure is intended to alert and the customer to agree in writing to OCC’s fiduciary regulation. The OCC customers that they may wish to obtain a different time and form of notification agrees with this comment and has further information or clarification from for a securities transaction where the revised the final rule to state simply that the bank on the nature of these national bank does not exercise for collective investment fund securities. For the reasons stated in the investment discretion. The OCC transactions a bank must follow the proposal and in light of the comments, received three comments on this issue. requirements of 12 CFR part 9. The final the final rule adopts these additional Two commenters asked for clarification rule also changes the name of the disclosure requirements. on the use of the notification by section, some introductory language, The proposal also requested agreement option. Another commenter and the captions in an effort to comments on whether part 12 should suggested moving § 12.4(c) back to eliminate confusion and enhance include a provision similar to SEC Rule § 12.5, the section on alternative forms readability. 10b–10(c) stating the required period of and times of notification, as under the The proposal clarified that for § 12.5 time for a national bank to furnish former rule. purposes generally, it is the information pursuant to a customer’s In response to these comments, the ‘‘transaction’’ that triggers the request. SEC Rule 10b–10(c) requires OCC notes that a bank does not need to notification requirements, not the type broker/dealers to furnish to customers provide a notification under § 12.4 (a) or of account. The OCC requested requested information within five (b) when using the notification by comments about any effects of the business days of the receipt of the agreement option, unless specifically proposed change regarding alternative request, or within 15 business days if requested by the customer. The OCC has forms of notification based upon types the broker/dealer effected the not substantively changed the of transactions instead of types of transaction more than 30 days before the notification by agreement option and accounts. receipt of the request. See 17 CFR intends a national bank using this The OCC received one comment on 240.10b–10(c). Former part 12 did not option to provide notification in the this proposed change. The commenter contain a similar provision. Two same way as under the former part 12 suggested that the type and form of commenters addressed this issue and provision. The final rule relocates the notification should be negotiated as part were opposed to incorporating the SEC’s notification by agreement option to of the original agreement between the standard. The commenters noted that § 12.5(a) in an effort to further clarify customer and the bank, and that furnishing information pursuant to a §§ 12.4 and 12.5. automated means then should be used 63962 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations to comply with the notification services should provide notification suggesting that the OCC include a requirements for all transactions in the similar to that provided by nonbank specific reference to establishing account. The commenter was concerned registered broker/dealers offering separate supervisory procedures and that the proposed change would similar services. As discussed in § 12.2, reporting lines for ‘‘back room’’ preclude this option of agreeing to the the OCC has revised the definition of personnel. On reconsideration and in type and form of the notification. periodic plan in the final rule to include light of the recent developments The OCC agrees with the commenter cash management sweep services. involving the lack of internal controls in that the customer and the national bank Section 12.5(e) in the final rule provides certain highly publicized cases,8 the should have the option to determine the the timeframe for notification for final rule includes a provision type and form of notification initially periodic plans. The final rule clarifies (§ 12.7(a)(1)(iii)) that explicitly states the with the account opening. The OCC that, with respect to cash management need for separate supervisory does not believe that the change set out sweep services, the time for notification procedures for back room functions. in the proposal would preclude the is each month in which a purchase or The OCC received several comments customer and the bank agreeing sale of securities takes place in the related to the filing of personal trading beforehand on the form and time of the customer’s deposit account and not less reports by national bank officers and notification required. For example, a than once every three months if there employees under proposed § 12.7(a)(4). national bank effecting securities are no securities transactions in the One commenter recommended revising transactions for an account in which the account. The final rule also adopts the § 12.7(a)(4)(iii) to apply only to bank exercises investment discretion change as proposed for other periodic employees who perform the securities may have an agreement with the plans, namely, that the time for trading functions for the bank. The OCC customer to provide a monthly account notification is not less than once every declines to narrow the scope of the statement. The alternative notification three months. The OCC believes that requirement in the final rule given the procedures set forth in § 12.5 continue these timeframes are consistent with important purpose behind the personal to permit the national bank and the current industry practice and the SEC’s reporting requirement and recent customer to agree in writing to another notification requirements. These concerns in the securities industry on type and form of notification. However, timeframes also will serve to eliminate personal trading by insiders.9 This even though the national bank and the unnecessary regulatory burden by requirement, which is similar to customer may agree on the type and reducing the number of required requirements under the securities laws form of notification at the opening of the notifications. and regulations, addresses potential account, the OCC views the The OCC reminds national banks conflicts of interests between bank ‘‘transaction’’ as triggering the part 12 engaging in cash management sweep personnel and customers and deters notification requirements. The OCC services that the securities involved in improper or illegal use of information does not intend for the proposed change the sweep services remain subject to any by bank insiders. to substantively affect a national bank’s other applicable rules and regulations. The proposal did not change the compliance with the part 12 notice In some instances notification scope of former § 12.6 (renumbered as requirements. Thus, the final rule requirements other than those of part 12 § 12.7 in the proposal). The OCC adopts this change in terminology that may apply. For example, a bank offering requires the filing of a report from the transaction triggers the notification a sweep repurchase agreement program national bank officers or employees who requirements. involving government securities, make investment recommendations or The proposed rule amended the commonly called a ‘‘sweep repo,’’ may decisions for the accounts of customers, notification time for periodic plan be subject to daily confirmation participate in the determination of the transactions under § 12.5(d) requirements under the Government recommendations or decisions, or who, (renumbered in the final rule as Securities Act of 1986 regulations, 17 in connection with their duties, obtain § 12.5(e)) to not less than once every CFR parts 400 through 405, 449, and information concerning which securities three months rather than notification as 450. See OCC Advisory Letter 96–2 are being purchased or sold or promptly as possible after each (March 22, 1996). recommended for purchase or sale. The transaction. One commenter noted their OCC notes that these individuals do not support for this change in notification Fees (§ 12.6) have to be regularly or frequently time. Two other commenters The proposal placed the former involved in the recommendation or specifically suggested the OCC clarify in provisions in §§ 12.4 and 12.5 regarding decision-making process or obtain the final rule how the periodic plan fees into a new § 12.6. The OCC information on a regular basis to be notification requirements apply to cash received no comments on this section. subject to the reporting requirement. management sweep services. One The final rule adopts the section However, the mere fact that an officer or commenter noted that a separate substantially as proposed except that employee learns of a securities confirmation requirement, for example, certain provisions are reordered. transaction after it has been effected, or for every money market mutual fund an investment recommendation after it Securities Trading Policies and transaction in a sweep arrangement, has been transmitted to a customer, Procedures (§ 12.7) would impose an unnecessary would not subject that officer or paperwork burden on national banks The proposal retained the and their customers and place banks at requirement under § 12.7(a)(1) that a 8 See, e.g., David Brilliant, Tone at the Top: a competitive disadvantage relative to bank establish written policies and Boards and Managers Must Ensure Quality Business nonbank registered broker/dealers. procedures assigning supervisory and Controls, The Banker 26 (Nov. 1995); Out of Control: Greater Supervision is Urged by the Report Under the SEC’s Rule 10b–10, broker/ responsibility for personnel engaged in into the Barings Fiasco, The Banker 15 (Aug. 1995); dealers must provide a confirmation different aspects of the trading process. Maureen Duffy, Barings’ Systems: The Blame Game, after the end of each monthly period for The proposal did not propose specific 12 Wall Street & Technology 16 (1995). transactions in money market mutual language concerning the separation of 9 See, e.g., Division of Investment Management, SEC, Personal Investment Activities of Investment funds. See 17 CFR 240.10b–10(b)(2). supervisory responsibility for sales Company Personnel (1994); Investment Company The OCC agrees that national banks activities and ‘‘back room’’ functions. Institute, Report of the Advisory Group on Personal offering cash management sweep The OCC received one comment Investing (1994). Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63963 employee to the reporting requirements an investment company or to another access to the text of the SEC’s rule rather of § 12.7. type of customer. than only having a cross-reference to the Another commenter requested that The final rule also includes a SEC’s rule in the OCC’s regulation. For the OCC amend the requirement to file technical correction to § 12.7(d) to this reason, the final rule adopts § 12.9 personal trading reports ‘‘within ten clarify that SEC Rule 17j–1 requires as proposed. days’’ so that it reads ‘‘within ten personal securities transactions to be business days’’ to accommodate large reported to the investment adviser and Interpretations (§§ 12.101 and 12.102) banking organizations. The suggested maintained for review by the SEC. The proposal added two interpretive change is consistent with past informal Waivers (§ 12.8) rulings to part 12. The first practices to which the OCC has not interpretation (§ 12.101) related to the objected. Accordingly, the final rule The proposal clarified that a national disclosure of remuneration for mutual reflects this change. bank may file a written request with the fund transactions. Consistent with the Under § 12.7(d), the proposal OCC for waiver of one or more of the SEC’s practice, the OCC stated it would requested comment on clarifying that a requirements set forth in §§ 12.2 allow a bank to fulfill its disclosure national bank acting as an investment through 12.7, either in whole or in part. requirement regarding the source and adviser to an investment company is The OCC received no comments on this amount of remuneration for mutual subject to section 17 of the Investment section. The final rule adopts § 12.8 as fund transactions by providing this Company Act, 15 U.S.C. 80a–17, and, in proposed. information to the customer in a current particular, the requirements of Rule 17j– Settlement of securities transactions prospectus, at or before completion of 1 of the Investment Company Act, 17 (§ 12.9) the securities transaction. CFR 270.17j–1 (SEC Rule 17j–1). The additional provision in the proposal The proposal added § 12.9 to establish The second interpretive ruling simply reminded banks of the separate a securities settlement timeframe for (§ 12.102) recognized the use of existing requirement under SEC Rule national banks effecting or entering into electronic communications to satisfy 17j–1. As noted in § 12.7(d), certain contracts for the purchase or sale of part 12’s customer notification officers and employees of a national securities for customers. The OCC requirements. This would allow a bank acting as an investment adviser to intends this provision to parallel the national bank to send a customer an investment company must comply SEC’s adoption of the ‘‘T+3’’ securities notification by facsimile transmission or with a reporting requirement regarding settlement timeframe. See Securities by some other electronic media under personal securities trading under both Exchange Act of 1934 Rule 15c6–1, 17 certain circumstances. Since the OCC part 12 and SEC Rule 17j–1. CFR 240.15c6–1; 58 FR 52891 (Oct. 13, published the proposal, the SEC has The OCC received two comments 1993); 60 FR 26604 (May 17, 1995) issued further guidance for broker/ addressing this issue. The commenters (amendments to the rule). The OCC dealers using electronic media to deliver suggested that the OCC clarify that filing requested comment on the need for and information to customers under the one report with the bank will suffice for effect of adopting the T+3 securities SEC’s confirmation rule, SEC Rule 10b– purposes of both part 12 and SEC Rule settlement requirement for national 10, 17 CFR 240.10b–10. See Securities 17j–1 if the information required is the banks. and Exchange Commission Release No. same. The OCC believes this would The OCC received one comment on 33–7288, 61 FR 24644 (May 15, 1996). reduce burden while enabling the OCC this issue. The commenter pointed out The SEC’s guidance supersedes its and the SEC to have access to the report. that many small banks do not have earlier guidance as cited in the proposal. Accordingly, the final rule permits access to SEC rules and would prefer to However, SEC Release No. 33–7288 national bank officers and employees to have part 12 specify the actual retains a general approach consistent file one report where the required requirement. The commenter also noted with the OCC’s proposed interpretive information is the same. Nonetheless, that incorporating the SEC’s rule by ruling. the OCC cautions national banks to reference would permit banks to take The OCC received two comments recognize that the part 12 requirements, advantage of any changes by the SEC strongly supporting the addition of the in some respects, are broader than those immediately rather than waiting for the interpretive rulings. Since the OCC’s under the Investment Company Act OCC to amend part 12. After careful proposed interpretive rulings are because part 12 applies to investment consideration of this matter, the OCC consistent with the SEC’s approach, the advisory activities by national banks decided that national banks would final rule adopts the interpretive rulings whether the bank provides the advice to benefit more from having immediate as proposed.

DERIVATION TABLE [Only substantive modifications, additions and changes are indicated]

Revised provision Original provision Comments

§ 12.1(a) ...... § 12.1(a). § 12.1(b) ...... § 12.1(a). § 12.1(c)(1) ...... Added. § 12.1(c)(2)(i) ...... § 12.7(a). § 12.1(c)(2)(ii) ...... Added. § 12.1(c)(2)(iii) ...... § 12.7(b) ...... Modified. § 12.1(c)(2)(iv) ...... § 12.7(c). § 12.1(c)(2)(v) ...... Added. § 12.1(c)(3) ...... Added. § 12.1(b) ...... Removed. § 12.2(a) ...... Added. § 12.2(b) ...... § 12.2(a). § 12.2(c) ...... Added. 63964 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

DERIVATION TABLEÐContinued [Only substantive modifications, additions and changes are indicated]

Revised provision Original provision Comments

§ 12.2(d) ...... Added. § 12.2(e) ...... § 12.2(b) ...... Modified. § 12.2(f) ...... Added. § 12.2(g) ...... Added. § 12.2(h) ...... § 12.2(c). § 12.2(i) ...... Added. § 12.2(j) ...... § 12.2(d) ...... Modified. § 12.2(k) ...... § 12.2(e) ...... Modified. § 12.3(b) ...... § 12.3 ...... Modified. § 12.4 ...... §§ 12.4, 12.5 ...... Modified. § 12.5 ...... §§ 12.4, 12.5 ...... Modified. § 12.6 ...... §§ 12.4, 12.5. § 12.7(a) ...... § 12.6 (a), (b), (c), and (d). § 12.7(b) ...... § 12.6(d) ...... Modified. § 12.7(c) ...... § 12.6(d) ...... Modified. § 12.7(d) ...... Added. § 12.8 ...... 12.7(d). § 12.9 ...... Added. § 12.101 ...... Added. § 12.102 ...... Added.

Effective Date aggregate, or by the private sector, of (5) Estimates of capital or start-up The final rule takes effect on $100 million or more in any one year. costs and costs of operation, December 31, 1996. The OCC finds good If a budgetary impact statement is maintenance, and purchase of services cause, pursuant to 5 U.S.C. 553(d)(3), for required, section 205 of the Unfunded to provide information. prescribing this year-end effective date, Mandates Act also requires an agency to Respondents/recordkeepers are not because it will enable national banks to identify and consider a reasonable required to respond to these collections adjust their practices to conform with number of regulatory alternatives before of information unless they display a the regulation at the beginning of a promulgating a rule. Because the OCC currently valid OMB control number. calendar quarter. The final rule confers has determined that the final rule will The collections of information benefits on the public and national not result in expenditures by state, contained in this final rule have been banks by streamlining and clarifying local, and tribal governments, or by the approved by the Office of Management current requirements governing private sector, of more than $100 and Budget under OMB Control No. recordkeeping and confirmations for million in any one year, the OCC has 1557–0142 in accordance with the securities transactions. not prepared a budgetary impact Paperwork Reduction Act of 1995 (44 statement or specifically addressed the U.S.C. 3507(d)). Comments on the Regulatory Flexibility Act regulatory alternatives considered. collections of information should be It is hereby certified that this final Nevertheless, as discussed in the sent to the Office of Management and rule will not have a significant preamble, the rule has the effect of Budget, Paperwork Reduction Project economic impact on a substantial reducing somewhat regulatory costs and 1557–0142, Washington, DC 20503, number of small entities. Accordingly, a other burdens, where possible. with a copy to the Legislative and Regulatory Activities Division regulatory flexibility analysis is not Paperwork Reduction Act of 1995 required. This final rule will have (Attention: 1557–0142), Office of the minimal economic impact on national The OCC invites comment on: Comptroller of the Currency, 250 E banks, regardless of size, since it (1) Whether the collections of Street, SW., Washington, DC 20219. reduces somewhat regulatory burden information contained in this final rule The collections of information in this but makes no material changes. are necessary for the proper final rule are found in 12 CFR 12.3 through 12.5 and 12.7 and 12.8. This Executive Order 12866 performance of the agency’s functions, including whether the information has information is required by the OCC to The OCC has determined that this practical utility; establish an audit trail. That audit trail is used by the OCC in its regulatory final rule is not a significant regulatory (2) The accuracy of the agency’s action. examinations as a tool to evaluate a estimate of the burden of the bank’s compliance with the banking and Unfunded Mandates Act of 1995 information; securities laws and regulations, such as Section 202 of the Unfunded (3) Ways to enhance the quality, the anti-fraud provisions of the Federal Mandates Reform Act of 1995, Pub. L. utility, and clarity of the information to securities laws. Further, the records 104–4, March 22, 1995, 109 Stat. 48 be collected; provide a basis for adequate disclosure (Unfunded Mandates Act), requires that (4) Ways to minimize the burden of to customers who effect securities an agency prepare a budgetary impact the information collections on transactions through national banks. statement before promulgating a rule respondents, including the use of Other information provides a basis for that includes a Federal mandate that automated information collection the OCC to waive some or all of the may result in the expenditure by state, techniques or other forms of information recordkeeping and confirmation local, and tribal governments, in the technology; and requirements of 12 CFR part 12. The Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63965 respondents/recordkeepers are national Exchange Commission. See 15 U.S.C. or timely distribution of proceeds to the banks. 78c(a)(30) and 78o–4. This part, as well security holders. Estimated average annual burden as 12 CFR part 9, applies to securities (b) Collective investment fund means hours per respondent/recordkeeper: The transactions effected by a national bank any fund established pursuant to 12 average burden will vary from two as fiduciary. CFR 9.18. hours to more than 700 hours, (2) Exceptions—(i) Small number of (c) Completion of the transaction depending upon individual transactions. The requirements of means: circumstances, with an estimated §§ 12.3(a)(2) through (4) and 12.7(a)(1) (1) In the case of a customer who average of 53.5 hours. through (3) do not apply to a national purchases a security through or from a Estimated number of respondents bank having an average of fewer than national bank, except as provided in and/or recordkeepers: 1,047. 200 securities transactions per year for paragraph (c)(2) of this section, the time Estimated total annual reporting and customers over the prior three calendar when the customer pays the bank any recordkeeping burden: 56,019. hours year period. The calculation of this part of the purchase price, or, if Start-up costs to respondents: None. average does not include transactions in payment is made by a bookkeeping entry, the time when the bank makes the List of Subjects in 12 CFR Part 12 government securities. (ii) Government securities. The bookkeeping entry for any part of the National banks, Reporting and recordkeeping requirements of § 12.3 do purchase price; (2) In the case of a customer who recordkeeping requirements, Securities. not apply to national banks effecting purchases a security through or from a fewer than 500 government securities Authority and Issuance national bank and who makes payment brokerage transactions per year. This for the security prior to the time when For the reasons set out in the exception does not apply to government payment is requested or notification is preamble, part 12 of chapter I of title 12 securities dealer transactions by given that payment is due, the time of the Code of Federal Regulations is national banks. See 17 CFR 404.4(a). revised to read as follows: when the bank delivers the security to (iii) Municipal securities. This part or into the account of the customer; PART 12ÐRECORDKEEPING AND does not apply to transactions in (3) In the case of a customer who sells CONFIRMATION REQUIREMENTS FOR municipal securities conducted by a a security through or to a national bank, SECURITIES TRANSACTIONS national bank registered with the except as provided in paragraph (c)(4) of Securities and Exchange Commission as this section, if the security is not in the Sec. a ‘‘municipal securities dealer’’ as custody of the bank at the time of sale, 12.1 Authority, purpose, and scope. defined in title 15 U.S.C. 78c(a)(30). See 12.2 Definitions. the time when the security is delivered 15 U.S.C. 78o–4. to the bank, and if the security is in the 12.3 Recordkeeping. (iv) Foreign branches. This part does 12.4 Content and time of notification. custody of the bank at the time of sale, 12.5 Notification by agreement; alternative not apply to securities transactions the time when the bank transfers the forms and times of notification. conducted by a foreign branch of a security from the account of the 12.6 Fees. national bank. customer; 12.7 Securities trading policies and (v) Transactions effected by registered (4) In the case of a customer who sells procedures. broker/dealers. This part does not apply a security through or to a national bank 12.8 Waivers. to securities transactions effected by a and who delivers the security to the 12.9 Settlement of securities transactions. broker or dealer registered with the bank prior to the time when delivery is Interpretations Securities and Exchange Commission requested or notification is given that 12.101 National bank disclosure of (SEC) where the SEC-registered broker delivery is due, the time when the bank remuneration for mutual fund or dealer directly provides the customer makes payment to or into the account of transactions. a confirmation; including, transactions the customer. 12.102 National bank use of electronic effected by a national bank employee (d) Crossing of buy and sell orders communications as customer when acting as an employee of an SEC- means a security transaction in which notifications. registered broker/dealer. the same bank acts as agent for both the Authority: 12 U.S.C. 24, 92a, and 93a. (3) Safe and sound operations. buyer and the seller. Notwithstanding paragraph (c)(2) of this (e) Customer means any person or § 12.1 Authority, purpose, and scope. section, every national bank conducting account, including any agency, trust, (a) Authority. This part is issued securities transactions for customers estate, guardianship, or other fiduciary pursuant to 12 U.S.C. 24, 92a, and 93a. shall maintain effective systems of account for which a national bank (b) Purpose. This part establishes records and controls regarding their makes or participates in making the rules, policies, and procedures customer securities transactions to purchase or sale of securities, but does applicable to recordkeeping and ensure safe and sound operations. The not include a broker, dealer, bank acting confirmation requirements for certain systems maintained must clearly and as a broker or dealer, bank acting as the securities transactions effected by accurately reflect appropriate fiduciary of an account, bank as trustee national banks for customers. information and provide an adequate acting as shareholder of record for the (c) Scope—(1) General. Any security basis for an audit. purchase or sale of securities, or issuer transaction effected for a customer by a of securities that are the subject of the national bank is subject to this part, § 12.2 Definitions. transaction. except as provided by paragraph (c)(2) (a) Asset-backed security means a (f) Debt security means any security, of this section. This part applies to a security that is primarily serviced by the such as a bond, debenture, note, or any national bank effecting transactions in cashflows of a discrete pool of other similar instrument that evidences government securities. This part also receivables or other financial assets, a liability of the issuer (including any applies to municipal securities either fixed or revolving, that by their security of this type that is convertible transactions by a national bank that is terms convert into cash within a finite into stock or a similar security) and not registered as a ‘‘municipal securities time period plus any rights or other fractional or participation interests in dealer’’ with the Securities and assets designed to assure the servicing one or more of any of the foregoing. This 63966 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations definition does not include securities 103(a)(1)) if, by reason of the application § 12.3 Recordkeeping. issued by an investment company of paragraph (4) or (6) of section 103(c) (a) General rule. A national bank registered under the Investment of the Code (26 U.S.C. 103(c)) effecting securities transactions for Company Act of 1940, 15 U.S.C. 80a–1 (determined as if paragraphs (4)(A), (5), customers shall maintain the following et seq. and (7) were not included in section records for at least three years: (g) Government security means: 103(c) (26 U.S.C. 103(c)), paragraph (1) (1) Chronological records. An (1) A security that is a direct of section 103(c) (26 U.S.C. 103(c)) does itemized daily record of each purchase obligation of, or obligation guaranteed not apply to the security. and sale of securities maintained in as to principal and interest by, the (j) Periodic plan means: chronological order, and including: United States; (1) A written authorization for a (i) Account or customer name for (2) A security that is issued or national bank to act as agent to purchase which each transaction was effected; guaranteed by a corporation in which or sell for a customer a specific security (ii) Description of the securities; the United States has a direct or indirect or securities, in a specific amount (iii) Unit and aggregate purchase or interest and which is designated by the (calculated in security units or dollars) sale price; Secretary of the Treasury for exemption or to the extent of dividends and funds (iv) Trade date; and as necessary or appropriate in the public available, at specific time intervals, and (v) Name or other designation of the interest or for the protection of setting forth the commission or charges broker/dealer or other person from investors; to be paid by the customer or the whom the securities were purchased or (3) A security issued or guaranteed as manner of calculating them. These plans to whom the securities were sold; to principal and interest by any include dividend reinvestment plans, (2) Account records. Account records corporation whose securities are automatic investment plans, and for each customer, reflecting: designated, by statute specifically employee stock purchase plans. (i) Purchases and sales of securities; naming the corporation, to constitute (2) Any prearranged, automatic (ii) Receipts and deliveries of exempt securities within the meaning of transfer or ‘‘sweep’’ of funds from a securities; the laws administered by the Securities deposit account to purchase a security, (iii) Receipts and disbursements of and Exchange Commission; or or any prearranged, automatic cash; and (4) Any put, call, straddle, option, or redemption or sale of a security with the (iv) Other debits and credits privilege on a security described in funds being transferred into a deposit pertaining to transactions in securities; paragraph (g)(1), (2), or (3) of this account (including cash management (3) Memorandum order. A separate section, other than a put, call, straddle, sweep services). memorandum (order ticket) of each option, or privilege: (k) Security: (1) Means any note, (i) That is traded on one or more order to purchase or sell securities stock, treasury stock, bond, debenture, national securities exchanges; or (whether executed or canceled), (ii) For which quotations are certificate of interest or participation in including: disseminated through an automated any profit-sharing agreement or in any (i) Account or customer name for quotation system operated by a oil, gas, or other mineral royalty or which the transaction was effected; registered securities association. lease, any collateral-trust certificate, (ii) Type of order (market order, limit (h) Investment discretion means that, preorganization certificate or order, or subject to special instructions); with respect to an account, a bank subscription, transferable share, (iii) Time the trader or other bank directly or indirectly: investment contract, voting-trust employee responsible for effecting the (1) Is authorized to determine what certificate, and any put, call, straddle, transaction received the order; securities or other property shall be option, or privilege on any security or (iv) Time the trader placed the order purchased or sold by or for the account; group or index of securities (including with the broker/dealer, or if there was or any interest therein or based on the no broker/dealer, time the order was (2) Makes decisions as to what value thereof), or, in general, any executed or canceled; securities or other property shall be instrument commonly known as a (v) Price at which the order was purchased or sold by or for the account ‘‘security’’; or any certificate of interest executed; and even though some other person may or participation in, temporary or interim (vi) Name of the broker/dealer have responsibility for these investment certificate for, receipt for, or warrant or utilized; decisions. right to subscribe to or purchase, any of (4) Record of broker/dealers. A record (i) Municipal security means: the foregoing; of all broker/dealers selected by the (1) A security that is a direct (2) Does not mean currency; any note, bank to effect securities transactions and obligation of, or an obligation draft, bill of exchange, or banker’s the amount of commissions paid or guaranteed as to principal or interest by, acceptance which has a maturity at the allocated to each broker during the a State or any political subdivision, or time of issuance not exceeding nine calendar year; and any agency or instrumentality of a State months, exclusive of days of grace, or (5) Notifications. A copy of the or any political subdivision; any renewal thereof, the maturity of written notification required by §§ 12.4 (2) A security that is a direct which is likewise limited; a deposit or and 12.5. obligation of, or an obligation share account in a Federal or State (b) Manner of maintenance. The guaranteed as to principal or interest by, chartered depository institution; a loan records required by this section must any municipal corporate instrumentality participation; a letter of credit or other clearly and accurately reflect the of one or more States; or form of bank indebtedness incurred in information required and provide an (3) A security that is an industrial the ordinary course of business; units of adequate basis for the audit of the development bond (as defined in a collective investment fund; interests information. Record maintenance may section 103(c)(2) of the Internal Revenue in a variable amount note in accordance include the use of automated or Code of 1954 (26 U.S.C. 103(c)(2) with 12 CFR 9.18; U.S. Savings Bonds; electronic records provided the records (1970)) (Code)) the interest on which is or any other instrument the OCC are easily retrievable, readily available excludable from gross income under determines does not constitute a for inspection, and capable of being section 103(a)(1) of the Code (26 U.S.C. security for purposes of this part. reproduced in a hard copy. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63967

§ 12.4 Content and time of notification. (7) Name of the registered broker/ asset-backed security may vary Unless a national bank elects to dealer utilized; or where there is no according to the rate at which the provide notification by one of the means registered broker/dealer, the name of the underlying receivables or other financial specified in § 12.5, a national bank person from whom the security was assets are prepaid and a statement that effecting a securities transaction for a purchased or to whom the security was information concerning the factors that customer shall give or send to the sold, or a statement that the bank will affect yield (including at a minimum customer either of the following types of furnish this information within a estimated yield, weighted average life, notifications at or before completion of reasonable time upon written request and the prepayment assumptions the transaction or, if the bank uses a from the customer; underlying yield) will be furnished registered broker/dealer’s confirmation, (8) In the case of any transaction in a upon written request of the customer; within one business day from the bank’s debt security subject to redemption and receipt of the registered broker/dealer’s before maturity, a statement to the effect (12) In the case of a transaction in a confirmation: that the debt security may be redeemed debt security, other than a government (a) Written notification. A written in whole or in part before maturity, that security, that the security is unrated by notification disclosing: the redemption could affect the yield a nationally recognized statistical rating (1) Name of the bank; represented and that additional organization, if that is the case; or (2) Name of the customer; information is available upon request; (b) Copy of the registered broker/ (3) Capacity in which the bank acts (9) In the case of a transaction in a dealer’s confirmation. A copy of the (i.e., as agent for the customer, as agent debt security effected exclusively on the confirmation of a registered broker/ for both the customer and some other basis of a dollar price: dealer relating to the securities person, as principal for its own account, (i) The dollar price at which the transaction and, if the customer or any or in any other capacity); transaction was effected; and other source will provide remuneration (4) Date and time of execution, or a (ii) The yield to maturity calculated to the bank in connection with the statement that the bank will furnish the from the dollar price, unless the transaction and a written agreement time of execution within a reasonable transaction is for a debt security that between the bank and the customer does time upon written request of the either: not determine the remuneration, a customer, and the identity, price, and (A) Has a maturity date that may be statement of the source and amount of number of shares or units (or principal extended by the issuer thereof, with a any remuneration that the customer or amount in the case of debt securities) of variable interest payable thereon; or any other source is to provide the bank. the security purchased or sold by the (B) Is an asset-backed security that customer; represents an interest in or is secured by § 12.5 Notification by agreement; (5) Amount of any remuneration that a pool of receivables or other financial alternative forms and times of notification. the customer has provided or is to assets that continuously are subject to A national bank may elect to use the provide any broker/dealer, directly or prepayment; following notification procedures as an indirectly, in connection with the (10) In the case of a transaction in a alternative to complying with § 12.4: transaction; debt security effected on the basis of (a) Notification by agreement. A (6) (i) Amount of any remuneration yield: national bank effecting a securities that the bank has received or will (i) The yield at which the transaction transaction for an account in which the receive from the customer, and the was effected, including the percentage bank does not exercise investment source and amount of any other amount and its characterization (e.g., discretion shall give or send written remuneration that the bank has received current yield, yield to maturity, or yield notification at the time and in the form or will receive in connection with the to call) and if effected at yield to call, agreed to in writing by the bank and transaction; unless: the type of call, the call date, and call customer, provided that the agreement (A) The bank and its customer have price; makes clear the customer’s right to determined remuneration pursuant to a (ii) The dollar price calculated from receive the written notification pursuant written agreement; or the yield at which the transaction was to § 12.4 (a) or (b) at no additional cost (B) In the case of government effected; and to the customer. securities and municipal securities, the (iii) If effected on a basis other than (b) Trust transactions. A national bank received the remuneration in other yield to maturity and the yield to bank effecting a securities transaction than an agency transaction. maturity is lower than the represented for an account in which the bank (ii) If the bank elects not to disclose yield, the yield to maturity as well as exercises investment discretion other the source and amount of remuneration the represented yield, unless the than in an agency capacity shall give or it has or will receive from a party other transaction is for a debt security that send written notification within a than the customer pursuant to either: reasonable time if a person having the paragraph (a)(6)(i) of this section, the (A) Has a maturity date that may be power to terminate the account, or, if written notification must disclose extended by the issuer thereof, with a there is no such person, any person whether the bank has received or will variable interest rate payable thereon; or holding a vested beneficial interest in receive remuneration from a party other (B) Is an asset-backed security that the account, requests written than the customer, and that the bank represents an interest in or is secured by notification pursuant to § 12.4 (a) or (b). will furnish within a reasonable time a pool of receivables or other financial Otherwise, notification is not required. the source and amount of this assets that continuously are subject to (c) Agency transactions. (1) A national remuneration upon written request of prepayment; bank effecting a securities transaction the customer. This election is not (11) In the case of a transaction in a for an account in which the bank available, however, if, with respect to a debt security that is an asset-backed exercises investment discretion in an purchase, the bank was participating in security, which represents an interest in agency capacity shall give or send, not a distribution of that security; or, with or is secured by a pool of receivables or less than once every three months, an respect to a sale, the bank was other financial assets that continuously itemized statement to each customer participating in a tender offer for that are subject to prepayment, a statement that specifies the funds and securities in security; indicating that the actual yield of the the custody or possession of the bank at 63968 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations the end of the period and all debits, (1) Assign responsibility for (2) The transaction is in mutual fund credits and transactions in the supervision of all officers or employees shares; customer’s account during the period. who: (3) The transaction is in government (2) If requested by the customer, the (i) Transmit orders to or place orders securities; or bank shall give or send written with registered broker/dealers; (4) The transactions involve an notification to the customer pursuant to (ii) Execute transactions in securities aggregate amount of purchases and sales § 12.4 (a) or (b) within a reasonable for customers; or per officer or employee of $10,000 or time. (iii) Process orders for notification or less during the calendar quarter. (d) Collective investment fund settlement purposes, or perform other (d) Additional reporting requirement. transactions. A national bank effecting a back office functions with respect to A national bank that acts as an securities transactions effected for securities transaction for a collective investment adviser to an investment customers. Policies and procedures for investment fund shall follow 12 CFR company is subject to the requirements personnel described in this paragraph 9.18. of Securities and Exchange Commission (a)(1)(iii) must provide for supervision (SEC) Rule 17j–1 (17 CFR 270.17j–1) (e) Periodic plan transactions. (1) A and reporting lines that are separate national bank effecting a securities issued under the Investment Company from supervision and reporting lines for Act of 1940. SEC Rule 17j–1 requires an transaction for a periodic plan (except personnel described in paragraphs (a)(1) for a cash management sweep service) ‘‘access person’’ of the investment (i) and (ii) of this section; adviser to report certain personal shall give or send to its customer not (2) Provide for the fair and equitable less than once every three months, a securities transactions to the investment allocation of securities and prices to adviser for review by the Securities and written statement showing: accounts when the bank receives orders (i) The customer’s funds and Exchange Commission. ‘‘Access person’’ for the same security at approximately includes directors, officers, and certain securities in the custody or possession the same time and places the orders for of the bank; employees of the investment adviser. execution either individually or in The reporting requirement under (ii) All service charges and combination; paragraph (a)(4) of this section is a commissions paid by the customer in (3) Provide for the crossing of buy and separate requirement from any connection with the transaction; and sell orders on a fair and equitable basis applicable requirements under SEC Rule to the parties to the transaction, where (iii) All other debits and credits of the 17j–1. However, an ‘‘access person’’ permissible under applicable law; and customer’s account involved in the required to file a report with a national transaction. (4) Require bank officers and employees to report to the bank, within bank pursuant to SEC Rule 17j–1 need (2) A national bank effecting a not file a separate report under securities transaction for a cash ten business days after the end of the calendar quarter, all personal paragraph (a)(4) of this section if the management sweep service or other required information is the same. periodic plan as defined in § 12.2(j)(2) transactions in securities made by them shall give or send its customer a written or on their behalf in which they have a § 12.8 Waivers. statement, in the same form as under beneficial interest, if the officers and A national bank may file a written paragraph (e)(1) of this section, for each employees: request with the OCC for waiver of one (i) Make investment recommendations month in which a purchase or sale of a or more of the requirements set forth in or decisions for the accounts of security takes place in a deposit account §§ 12.2 through 12.7, either in whole or customers; and not less than once every three in part. The OCC may grant a waiver months if there are no securities (ii) Participate in the determination of the recommendations or decisions; or from the requirements of this part to any transactions in the account, subject to (iii) In connection with their duties, national bank, or any class of national any other applicable laws and obtain information concerning which banks, with regard to a specific regulations. securities are purchased, sold, or transaction or a specific class of (3) Upon written request of the recommended for purchase or sale by transactions. customer, the bank shall give or send the bank. the information described in § 12.4 (a) § 12.9 Settlement of securities (b) Required information. The report transactions. or (b), except that the bank need not required under paragraph (a)(4) of this (a) A national bank shall not effect or provide to the customer any information section must contain the following enter into a contract for the purchase or relating to remuneration paid in information: connection with the transaction when (1) The date of the transaction, the sale of a security (other than an the remuneration is paid by a source title and number of shares, and the exempted security as defined in 15 other than the customer. principal amount of each security U.S.C. 78c(a)(12), government security, involved; municipal security, commercial paper, § 12.6 Fees. (2) The nature of the transaction (i.e. bankers’ acceptances, or commercial A national bank may charge a purchase, sale, or other type of bills) that provides for payment of funds reasonable fee for providing notification acquisition or disposition); and delivery of securities later than the pursuant to § 12.5(b), (c), and (e). A (3) The price at which the transaction third business day after the date of the national bank may not charge a fee for was effected; and contract, unless otherwise expressly providing notification pursuant to § 12.4 (4) The name of the registered broker, agreed to by the parties at the time of or § 12.5 (a) and (d). registered dealer, or bank with or the transaction. through whom the transaction was (b) Paragraphs (a) and (c) of this § 12.7 Securities trading policies and effected. section do not apply to contracts: procedures. (c) Report not required. This section (1) For the purchase or sale of limited (a) Policies and procedures; reports of does not require a bank officer or partnership interests that are not listed securities trading. A national bank employee to report transactions if: on an exchange or for which quotations effecting securities transactions for (1) The officer or employee has no are not disseminated through an customers shall maintain and adhere to direct or indirect influence or control automated quotation system of a policies and procedures that: over the transaction; registered securities association; Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63969

(2) For the purchase or sale of of funds and delivery of securities at the § 12.102 National bank use of electronic securities that the Securities and time of the transaction for a contract for communications as customer notifications. Exchange Commission (SEC) may from the sale for cash of securities pursuant (a) In appropriate situations, a time to time, taking into account then to a firm commitment offering if the national bank may satisfy the ‘‘written’’ existing market practices, exempt by managing underwriter and the issuer notification requirement under §§ 12.4 order from the requirements of have agreed to the date for all securities and 12.5 through electronic paragraph (a) of SEC Rule 15c6–1, 17 sold pursuant to the offering and the communications. Where a customer has CFR 240.15c6–1(a), either parties to the contract have not a facsimile machine, a national bank unconditionally or on specified terms expressly agreed to another date for may fulfill its notification delivery and conditions, if the SEC determines payment of funds and delivery of requirement by sending the notification that an exemption is consistent with the securities at the time of the transaction. by facsimile transmission. Similarly, a public interest and the protection of Interpretations bank may satisfy the notification investors. delivery requirement by other electronic (c) Paragraph (a) of this section does § 12.101 National bank disclosure of communications when: not apply to contracts for the sale for remuneration for mutual fund transactions. cash of securities that are priced after A national bank may fulfill its (1) The parties agree to use electronic 4:30 p.m. Eastern time on the date the obligation to disclose information on the instead of hard-copy notifications; securities are priced and that are sold by source and amount of remuneration, (2) The parties have the ability to an issuer to an underwriter pursuant to required by § 12.4, for mutual fund print or download the notification; a firm commitment underwritten transactions by providing this (3) The recipient affirms or rejects the offering registered under the Securities information to the customer in a current trade through electronic notification; Act of 1933, 15 U.S.C. 77a et seq., or prospectus, at or before completion of sold to an initial purchaser by a national the securities transaction. The OCC’s (4) The system cannot automatically bank participating in the offering. A view is consistent with the position of delete the electronic notification; and national bank shall not effect or enter the Securities and Exchange (5) Both parties have the capacity to into a contract for the purchase or sale Commission (SEC) as provided in a no- receive electronic messages. of the securities that provides for action letter dated March 19, 1979, (b) The OCC would consider the payment of funds and delivery of which permits confirmations for mutual permissibility of other situations using securities later than the fourth business funds to refer to the sales load disclosed electronic notifications on a case-by- day after the date of the contract unless in the prospectus. See Letter to the case basis. otherwise expressly agreed to by the Investment Company Institute, parties at the time of the transaction. reprinted in [1979 Transfer Binder] Fed. Dated: November 22, 1996. (d) For purposes of paragraphs (a) and Sec. L. Rep. (CCH) 82041 (Mar. 19, Eugene A. Ludwig, (c) of this section, the parties to a 1979). The OCC would reconsider its Comptroller of the Currency. contract are deemed to have expressly position upon any change in the SEC’s [FR Doc. 96–30636 Filed 11–29–96; 8:45 am] agreed to an alternate date for payment practice. BILLING CODE 4810±33±P federal register December 2,1996 Monday Investment Securities;FinalRule 12 CFRParts1and7 Office oftheComptrollerCurrency Treasury Department ofthe Part VI 63971 63972 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

DEPARTMENT OF THE TREASURY Enhancement Act of 1984, (SMMEA) 1 Comments and OCC Action and the Riegle Community Development The OCC received 19 comment letters Office of the Comptroller of the and Regulatory Improvement Act of in response to the proposal. The Currency 2 1994 (CDRI) amended 12 U.S.C. commenters included eight trade 24(Seventh) and removed quantitative 12 CFR Parts 1 and 7 associations, one professional limits on national banks’’ purchases of association, six banks, two law firms, [Docket No. 96±26] certain types of mortgage- and small one private business, and one business-related securities, subject to RIN 1557±AB37 unaffiliated individual. The commenters regulations prescribed by the OCC. generally supported the proposal but Investment Securities On December 21, 1995, the OCC also recommended a number of specific published a notice of proposed modifications. Many of the commenters AGENCY: Office of the Comptroller of the rulemaking (60 FR 66152) (proposal) to offered reasons why the OCC should Currency, Treasury. revise part 1 and implement the changes remove or lessen structural limitations ACTION: Final rule. required by CDRI and SMMEA. The on investment in Type IV and Type V proposal sought to implement the goals securities, particularly aspects of the SUMMARY: The Office of the Comptroller of the OCC’s Regulation Review proposed diversification requirements. of the Currency (OCC) is clarifying and Program by updating and streamlining In the final rule, the OCC has updating its rules that prescribe the the regulation and eliminating addressed many of the concerns of the standards under which national banks requirements that imposed inefficient commenters and, in particular, has may purchase and sell, deal in, and and costly regulatory burdens on concluded that some of the proposal’s underwrite securities. This final rule is national banks. The proposal also definitional restrictions on Type IV and another component of the OCC’s sought to implement the amendments Type V securities are not necessary. Regulation Review Program, a project made by SMMEA and CDRI and to The final rule’s structure is based on designed to review, modernize, and update various provisions to address three core sections. Section 1.2 defines simplify OCC regulations and reduce market developments and to incorporate the five types of securities as well as unnecessary regulatory burdens on significant OCC interpretations and other significant terms such as national banks. The final rule judicial decisions. ‘‘investment grade,’’ ‘‘investment reorganizes the regulation by placing In the proposal, the OCC added two security,’’ and ‘‘marketable.’’ Section 1.3 related subjects together, clarifies new classifications of securities to prescribes limitations on dealing in, certain areas, and updates various characterize the changes made by underwriting, purchasing, and selling provisions to address market SMMEA and CDRI and to reflect each of the five types of securities developments and to incorporate developments in national banks’’ defined in § 1.2, investment company significant OCC interpretations, judicial treatment of their assets. Specifically, shares, and securities held based on decisions, and statutory amendments. the proposal added a new category of estimates of an obligor’s performance. EFFECTIVE DATE: December 31, 1996. securities, Type IV securities, that are Section 1.3 prescribes special provisions FOR FURTHER INFORMATION CONTACT: Lee defined as certain types of asset-backed on aggregation of securities with a Walzer, Senior Attorney, Securities and securities identified in SMMEA and common issuer and calculation of Corporate Practices Division, 202–874– CDRI, which are exempt from the 10 investment company holdings. Section 5210; Kurt Wilhelm, Senior Investment percent investment limitation of 12 1.4 prescribes how a national bank must Advisor, Capital Markets, 202–874– U.S.C. 24(Seventh). Type IV securities calculate the limits imposed by § 1.3. 5070; Daniel L. Cooke, Attorney, and are: (1) residential and commercial The final rule also makes minor Stuart E. Feldstein, Assistant Director, mortgage-related securities offered and clarifying and technical changes. The Legislative and Regulatory Activities sold pursuant to section 4(5) of the following section-by-section analysis Division, 202–874–5090. Office of the Securities Act of 1933 (Securities Act), discusses the comments and substantive Comptroller of the Currency, 250 E 15 U.S.C. 77d(5); (2) residential and changes made by the final rule: Street, S.W., Washington, DC 20009. commercial mortgage-related securities described in section 3(a)(41) of the Authority, Purpose, and Scope (§ 1.1) SUPPLEMENTARY INFORMATION: Securities Exchange Act of 1934 The proposal consolidated the former (Exchange Act), 15 U.S.C. 78c(a)(41); ‘‘Scope and application’’ section (§ 1.2) Background and (3) small business-related securities with the ‘‘Authority’’ section (§ 1.1). The Part 1 has historically prescribed the as defined in section 3(a)(53)(A) of the proposal also clarified that the limitations and restrictions on a Exchange Act, 15 U.S.C. 78c(a)(53)(A). limitations set forth in part 1 apply to national bank’s purchase of investment The proposal also added Type V national banks, federal branches of securities for its own account. Part 1 securities, which are investment grade foreign banks, District of Columbia also addresses a national bank’s ability securities that are backed by pools of banks, and state banks that are members to purchase and sell, deal in, and assets composed of obligations in which of the Federal Reserve System. underwrite certain investment a national bank may invest directly. The OCC received no comments on securities. The part 1 limitations on In addition to adding Type IV and this section, which is adopted as these activities are based on the Banking Type V securities, the proposal refined proposed with minor clarifying changes. Act of 1933, section 16, Pub. L. 73–66, the definitions and limitations imposed Definitions (§ 1.2) 48 Stat. 184 (codified as amended at 12 on the three existing types of securities. U.S.C. 24(Seventh)), and vary according Finally, the proposal restructured part 1 The proposal substantially revised the to the characteristics of the security. to make it easier to read and apply. definitions section to add several new In the past, part 1 grouped the definitions and to update others. The securities identified in 12 U.S.C. proposal revised the definitions of Type 1 Sec. 105(c), Pub. L. 98–440, Title I, 98 Stat. 1691 24(Seventh) into three categories, Types (codified as amended at 12 U.S.C. 24(Seventh) I, II, and III securities to define the I, II, and III securities. More recently, (1984)). securities by their characteristics rather the Secondary Mortgage Market 2 Pub. L. 103–325, 108 Stat. 2160 (1994). than by the statutory limitations on the Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63973 extent to which national banks may deal security non-investment grade and, a price that corresponds reasonably to in, underwrite, purchase, or sell them. therefore, not permissible for a national its fair value. The proposal replaced this The proposal also defined two new bank to purchase. One commenter definition with a more objective test that types of securities, Type IV and Type V recommended that, at a minimum, the lists particular indicators of a ready securities, and added a definition of OCC should deem a security market for a security. The proposal ‘‘investment company.’’ ‘‘investment grade’’ if a majority of the defined marketable as: (1) Securities The final rule adds a new defined NRSROs that rate the security rate it in registered under the Securities Act; (2) term, ‘‘NRSRO.’’ The final rule changes one of the top four categories. certain government securities exempt the paragraph letter designations for The OCC agrees that giving a single from Securities Act registration; (3) each definition accordingly. Of NRSRO the ability to deem an municipal revenue bonds exempt from particular note, the final rule makes the investment impermissible for a national Securities Act registration; and (4) following substantive changes: bank may be unnecessarily restrictive. securities that are investment grade and Thus, the final rule defines the term Capital and Surplus (§ 1.2(a)) sold pursuant to Securities Exchange ‘‘investment grade’’ to mean a security Commission (SEC) Rule 144A (17 CFR The proposal defined ‘‘capital and that receives a top four rating from 230.144A), which exempts certain surplus’’ as the sum of Tier 1 and Tier either: (a) Two or more NRSROs; or (b) private resales of securities to 2 capital includable in risk-based capital one NRSRO if the security has been institutional investors from Securities under the Minimum Capital Ratios in 12 rated by only one NRSRO. This Act registration. CFR part 3 appendix A, plus the balance approach assures that a security is The OCC requested comment on of a bank’s allowance for loan and lease sufficiently creditworthy while also whether the proposed definition of losses that is not included in Tier 2 allowing for some diversity in the ‘‘marketable’’ is sufficiently inclusive, capital. evaluations produced by different particularly regarding other exemptions The OCC received three comments on NRSROs. under the Securities Act and whether this definition. The commenters noted Some commenters requested that the the definition is appropriately inclusive that, because part 1 applies to state OCC exclude unsolicited ratings from of foreign sovereign debt. The OCC also banks that are members of the Federal the definition. Under the proposal, an asked commenters to suggest alternative Reserve System, the OCC should adopt unsolicited non-investment grade rating definitions of marketable that would a definition of ‘‘capital and surplus’’ would have rendered the security an address the OCC’s concerns about that applies the Board of Governors of impermissible investment for a national liquidity. the Federal Reserve System’s (FRB’s) bank. However, the final rule recognizes The OCC received 12 comments on definition of ‘‘capital and surplus’’ to unsolicited ratings, but no longer will this issue. A majority of the commenters state member banks. The OCC agrees permit a single unsolicited rating to recommended that the OCC expand the with these commenters and has, render a security automatically proposed definition or retain the former therefore, changed the final rule to ineligible for national bank investment. definition of marketable. These incorporate technical changes and to commenters asserted that the proposed provide that banks must use the Investment Security (§ 1.2(e)) definition was too restrictive and did appropriate Federal banking agencies’’ The proposal defined ‘‘investment not include certain securities that are guidelines defining ‘‘capital and security’’ as a security that is: (1) An included within the definition in the surplus.’’ investment grade marketable debt former regulation. For example, the commenters noted that foreign Investment Grade (§ 1.2(d)) obligation; or (2) the credit equivalent of an investment grade marketable debt sovereign debt, bank and savings and In many instances in the final rule, a obligation if the security is not rated. loan debt securities (which are exempt security must be ‘‘investment grade’’ to The OCC requested comment on from registration under the Securities be a permissible investment for a whether to describe more specifically Act), and commercial paper were not national bank. The proposal defined a the characteristics of securities that are identified in the proposed definition security as ‘‘investment grade’’ when the credit equivalent of investment even though they may have been each nationally recognized statistical grade. The OCC also asked commenters included within the former rating organization (NRSRO) that has to address whether other securities with marketability test. rated the security has given it a rating characteristics functionally equivalent The OCC did not intend to prescribe in one of the top four rating categories. to a debt obligation might be classified a marketability test that, through its Thus, for purposes of this definition, if as ‘‘investment securities.’’ objectivity, eliminates flexibility a security were given different ratings The OCC received four comments on available under the former rule and by different NRSROs, the lowest rating this section. The commenters generally unnecessarily excludes a broad range of would govern. For example, if two supported the definition of ‘‘investment securities. Therefore, the final rule NRSROs rated a security in one of their security.’’ Most commenters felt that retains the list of marketable securities top four categories, but a third NRSRO defining ‘‘credit equivalency’’ by contained in the proposal and adds to did not give the security a top four identifying specific characteristics that list the definition of marketable rating (a so-called ‘‘split- rated’’ would sacrifice flexibility. contained in the former regulation, i.e., security), the security would not qualify The OCC agrees with the commenters a security that may be sold with as ‘‘investment grade.’’ and believes that to adopt specific reasonable promptness at a price that The OCC received ten comments on identifiable characteristics of credit corresponds reasonably to its fair value. this section. Seven commenters equivalency would unduly restrict Thus, certain foreign sovereign debt and recommended that the OCC change the flexibility in this area. Therefore, the other securities may qualify under the proposed definition to recognize a OCC adopts the final rule as proposed. revised definition of marketable. This security as ‘‘investment grade’’ if only approach also provides additional one NRSRO rates the security in one of Marketable (§ 1.2(f)) flexibility for the OCC to review the the top four categories. These At § 1.5(a), the former rule defined a permissibility of national bank commenters asserted that otherwise any ‘‘marketable’’ security as one that may investment in particular securities on a one NRSRO could render a particular be sold with reasonable promptness at case-by-case basis. 63974 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

Several commenters also asked the recognizes NRSROs through no-action listing examples of qualifying types of OCC to remove the requirement that letters. The most recent SEC no action issuers. Securities Exchange Commission Rule letter in which the SEC expressed no The OCC received no comments on 144A, 17 CFR 230.144A (Rule 144A) opposition to the recognition of an this definition, which is adopted as securities be rated investment grade in NRSRO is Thomson Bankwatch, Inc., proposed. The OCC notes that the order to fall within the definition of SEC No-Action Letter, [1991 Transfer definition of Type II security also ‘‘marketable.’’ These commenters stated Binder] Fed. Sec. L. Rep. (CCH) includes other securities that the OCC that many privately-placed securities paragraph 79,800 (August 6, 1991). See deems eligible as Type II securities in are not rated. One commenter advocated also 59 FR 46314 (September 7, 1994) accordance with 12 U.S.C. 24(Seventh). that the OCC should not adopt the (publishing an SEC ‘‘Concept release’’ This provision gives the OCC flexibility, proposal, because Rule 144A provides on NRSROs).3 consistent with the authorizing statute, no assurance of marketability. Several commenters suggested that to review securities that may fulfill the The OCC agrees that a Rule 144A the OCC recognize foreign rating definitional requirements of a Type II security need not be rated investment organizations. The OCC finds that most security but are not listed in the grade to be marketable; but, if it is not significant foreign debt securities are definition. rated investment grade, it must be the rated by the NRSROs to which the SEC Type III Security (§ 1.2(k)) credit equivalent of investment grade. has expressed no objection and, at this The final rule therefore does not adopt time, sees no need to depart from the The former rule defined a Type III the proposed requirement that an SEC’s assessment of the rating security as a security that a bank may NRSRO rate a Rule 144A security organizations that are nationally purchase and sell for its own account, investment grade in order for the recognized. subject to the 10 percent limitation in 12 security to be marketable. Instead, U.S.C. 24(Seventh). The proposal consistent with other investment Type I Security (§ 1.2(i)) redefined a Type III security as an securities under this part, a Rule 144A The proposal used language similar to investment security that does not security may qualify as investment that in the former rule to define ‘‘Type qualify as a Type I, II, IV, or V security. grade, when not rated, and therefore I security’’ to mean any one of specified The proposal listed corporate bonds and qualify as marketable, if the bank government securities. The former rule municipal revenue bonds as examples determines that it is the credit and the proposal also incorporated key of Type III securities. equivalent of an investment grade elements of an OCC interpretation The OCC requested comment on security. The OCC expects that, as a regarding securities backed by the full whether to reference specifically other matter of safe and sound banking faith and credit of the U.S. Government. examples of Type III securities in practices, a bank will conduct a The OCC received four comments on addition to corporate bonds and thorough analysis of a security’s this definition. Three commenters municipal revenue bonds. In particular, creditworthiness in order to satisfy itself recommended that, consistent with 12 the OCC requested comment on whether that a particular security is the credit U.S.C. 24(Seventh), the OCC should add to include as Type III securities foreign equivalent of investment grade. qualified Canadian government securities that are eligible for The OCC has also determined that obligations to the definition of a Type I investment by foreign branches of U.S. proposed § 1.2(f)(2) is unnecessary. That security. The OCC received one banks. provision listed as one component of comment recommending that the OCC The OCC received seven comments on the definition of marketability each of add the debt securities of certain the definition of a Type III security. The the securities that is included in the developed foreign sovereigns to the list majority of these commenters definition of a Type I security. Because of Type I securities. recommended that the OCC include in Type I securities are not required to In accordance with 12 U.S.C. the list of examples that qualify as Type satisfy a marketability test under section 24(Seventh), the final rule adds III securities foreign securities that are 24(Seventh), it is unnecessary for the qualified Canadian government eligible for investment by foreign rule to include these Type I securities in obligations to the list of Type I branches of national banks and the definition of marketable. Therefore, securities. The OCC acknowledges that, mortgage backed securities (MBSs) that the final rule is adopted without in the future, other securities may fulfill do not qualify as Type IV or Type V proposed § 1.2(f)(2). The remainder of the definitional requirements of a Type securities. One commenter also paragraph § 1.2(f) is renumbered I security, and the OCC will review recommended that the OCC permit accordingly. securities, as appropriate, to determine national banks to underwrite and deal if they meet the statutory requirements. in municipal revenue bonds. NRSRO (§ 1.2(g)) The OCC has determined that the The OCC did not use the term Type II Security (§ 1.2(j)) proposed definition of a Type III ‘‘NRSRO’’ in the proposal. In making The proposal redefined a ‘‘Type II security provides appropriate examples changes to the final rule’s definition of, security’’ to mean an investment of the scope of qualifying Type III and limitations on, Type IV securities, security that is issued by certain state, securities. While certain mortgage the OCC found that referring to international, or multilateral backed securities and foreign securities nationally recognized statistical rating organizations or that is otherwise listed eligible for investment by foreign organizations (NRSROs) was the most or described in 12 U.S.C. 24(Seventh). branches of national banks will qualify direct and clear means of drafting the In contrast, the former rule defined a as investment securities and are, rule. The final rule, therefore, adds Type II security by identifying the therefore, Type III securities, others may ‘‘NRSRO’’ as a defined term. investment limits that apply to it and by not. The OCC has not concluded that all The OCC has not listed the rating foreign securities eligible for investment organizations that qualify as NRSROs in 3 Currently, the NRSROs recognized by the SEC by foreign branches of national banks this definition. The OCC generally are: Duff and Phelps, Inc.; Fitch Investors Service, qualify as a Type III investment Inc.; IBCA Limited (and its subsidiary, IBCA Inc.); follows the assessment of the SEC in Moody’s Investors Services Incorporated; Standard security. Nor does the OCC want to acknowledging the organizations that and Poor’s Corporation; and Thomson Bankwatch, imply that banks are precluded from are currently NRSROs. The SEC Inc. purchasing other classes of securities, Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63975 which may meet the definition of related securities and commercial single borrower/obligor can produce a ‘‘investment security’’ but are not mortgage-related securities, the commercial mortgage-backed security specifically listed as a Type III security. aggregate amount of collateral from pool that has diverse collateral. (2) The This may be the case if, for example, the loans of any one obligor could not majority of commercial mortgage loans OCC were to add further to the list of exceed 5 percent of the total amount of are nonrecourse to the borrower and, examples, thereby appearing to create the loans in the pool collateralizing the therefore, borrower diversity is less an exhaustive list of Type III securities. security (the ‘‘5 percent collateral relevant than tenant creditworthiness. The OCC does not intend to create an concentration limit’’). (3) The 5 percent collateral exclusive list of Type III securities. The OCC requested specific comment concentration limit will be on whether to define the term Type IV Security (§ 1.2(l)) unnecessarily burdensome and costly ‘‘homogeneous loans’’ and whether the relative to any benefits it provides The proposal added a new category of 5 percent collateral concentration limit because it will require a transaction-by- securities, Type IV securities, which was appropriate to assure adequate transaction analysis and the production SMMEA and CDRI made eligible for diversification of the collateral. and maintenance of voluminous reports purchase by national banks in unlimited The OCC received 17 comments on amounts. In 1984, the SMMEA amended the proposed definition of a Type IV regarding the make-up of each 12 U.S.C. 24(Seventh) to permit national security, particularly on the 5 percent commercial mortgage-related security banks to purchase residential and collateral concentration limit and the pool. commercial mortgage-related securities homogeneity and numerous obligor Some commenters recommended offered and sold pursuant to section 4(5) requirements. Most commenters raising the 5 percent collateral of the Securities Act of 1933 Act opposed the ‘‘homogenous,’’ concentration limit to a 20 percent limit. (Securities Act), 15 U.S.C. 77d(5), or ‘‘numerous,’’ and 5 percent collateral One commenter recommended that the residential mortgage-related securities concentration restrictions, stating that OCC use existing authority to assess a as defined in section 3(a)(41) of the they were impractical. Commenters risk-based capital surcharge when Exchange Act, 15 U.S.C. 78c(a)(41). The opposing both the ‘‘homogeneous’’ and holdings of a Type IV security exceed final rule incorporates the SMMEA ‘‘numerous obligor’’ requirements the aggregate amount of the appropriate amendments. asserted that those terms are vague and percentage of capital and surplus. CDRI defined a new type of small difficult to apply because they are not The OCC agrees with many of the business-related security in section defined. In particular, the commenters 3(a)(53)(A) of the Exchange Act, 15 asserted that the homogeneity reasons cited by the commenters and U.S.C. 78c(a)(53)(A), and added a class requirement conflicts with the has not adopted the homogeneity and 5 of commercial mortgage-related diversification objective of pooling percent collateral concentration limit. In securities to section 3(a)(41) of the commercial loans. These commenters particular, the OCC believes that the Exchange Act, 15 U.S.C. 78c(a)(41). stated that commercial loans, by their statutory requirements for residential CDRI’s amendments to 12 U.S.C. nature, are seldom homogeneous. and commercial mortgage-related 24(Seventh) removed limitations on Most commenters also recommended securities defined in 3(a)(41) of the purchases by national banks of certain that the OCC eliminate the 5 percent Securities Exchange Act of 1934, 15 small business-related and commercial collateral concentration limit on loans U.S.C. 78c(a)(41), to have an NRSRO mortgage-related securities. However, of any one obligor in Type IV security rating in one of the top two categories CDRI requires that certain residential loan pools. The commenters and for small business-related securities and commercial mortgage-related emphasized that the plain language of to receive a rating in one of the top four securities must receive a rating from an CDRI permits unlimited investment in rating categories provide sufficient NRSRO in one of the top two rating commercial mortgage-related and small safeguards against investment risks. categories. Small business-related business-related securities. These NRSRO ratings reduce the risk of securities must receive a rating in one commenters asserted that NRSROs investment posed to banks because of of the top four rating categories. consider concentration risk when they the NRSROs’ resources and ability to CDRI also authorized the OCC to rate a particular security, thereby analyze such factors as cash flow prescribe regulations to ensure that making the 5 percent collateral treatments, credit facilities, and acquisitions of statutorily defined concentration limit unnecessary. They collateral diversification. To ensure that residential and commercial mortgage- also asserted that the limit fails to banks do not purchase, in unlimited related securities and small business- consider compensating factors such as amounts, commercial and residential related securities are conducted in a credit enhancements, stable cash flow, mortgage-related securities that are manner consistent with safe and sound prime location of mortgage properties, offered or sold pursuant to section 4(5) banking practices. In its proposed construction quality of mortgaged of the Securities Act of 1933, 15 U.S.C. definition of a Type IV security, the property, and barriers to competition, 77d(5), that are predominantly OCC sought to guard against undue which are all considered by rating speculative in nature, the final rule concentration of risk that could arise agencies. requires that these securities at least be The commenters also cited the were a bank to invest in a security investment grade. backed by a small number of loans or if following reasons for their opposition to a small number of loans represents a the 5 percent collateral concentration In addition, the final retains the large percentage of the assets in the limit: (1) The 5 percent collateral requirement that the securities be pool. Therefore, the proposal required concentration limit mistakenly focuses composed of interests in a pool of loans Type IV securities that are small solely on the obligor, does not focus on to ‘‘numerous’’ obligors. The OCC business- or commercial mortgage- the collateral for the security, and believes that this requirement reflects an related securities to be fully secured by therefore fails to ensure diversification essential diversified risk characteristic interests in a pool of homogeneous of collateral. A collateral pool that of a mortgage-related or small business- loans of numerous obligors. satisfies the 5 percent collateral related security and does not unduly To assure diversification, the proposal concentration limit will not necessarily limit a national bank’s ability to invest also provided that, for small business- contain diverse collateral; however, a in these asset-backed securities. 63976 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

Type V Security (§ 1.2(m)) Type V security and further ensures that will be addressed by the OCC on a case- The proposal created a new category national banks do not acquire asset- by-case basis. of securities, Type V, that are backed securities that have speculative The final rule also makes several investment grade securities composed of characteristics. minor clarifying changes to § 1.3. loans in which a bank may invest Limitations on Dealing in, Underwriting, Type II and III Securities; Other directly. This definition reflected the and Purchasing and Selling Securities Investment Securities Limitations OCC’s long-standing interpretations (§ 1.3) (§ 1.3(d)) that, in addition to the investments The proposal consolidated the part 1 The proposal provided that a national described in 12 U.S.C. 24(Seventh), a provisions that limit dealing in, bank may not hold Type II and Type III national bank may hold securitized underwriting, purchasing, and selling securities of any one obligor that have forms of assets in which it may invest 4 different types of securities. The a combined aggregate par value directly. exceeding 10 percent of the bank’s Under the proposal, the definition of proposal limited ‘‘the aggregate par capital and surplus. However, the a Type V security included the same value of the obligations of any one proposal did not require aggregation limitations that were included in the obligor’’ of a Type II, III, or V security with respect to industrial development definition of a Type IV security (i.e., that a bank may hold to a specific bonds. Instead, the proposal applied the ‘‘homogeneous loans’’ from ‘‘numerous percentage limit. For example, the 10 percent limitation separately to each obligors’’ with the obligations of any proposal restricted the aggregate par security issue of a single obligor when one obligor composing no more than 5 value of the obligations of any one Type the proceeds of that issuance are to be percent of the pool). In order to assure II obligor held by the bank to no more used to acquire and lease real estate and the high quality of this type of asset- than 10 percent of the bank’s capital and backed security, the proposal also surplus. The proposal also imposed a 10 related facilities to economically and required that a Type V security be rated percent limit on Type III securities and legally separate industrial tenants, and investment grade. a 15 percent limit on Type V securities. the issuance is payable solely from and The commenters recommended that The OCC requested specific comment secured by a first lien on the revenues the OCC eliminate these requirements, on whether using the aggregate par to be derived from rentals paid by the citing many of the same reasons stated value of obligations of any one obligor lessee under net noncancellable leases. in their comments on the definition of is an appropriate measure of value. The OCC received no comments on Four commenters recommended that a Type IV security. For the same reasons this section, which is adopted as the OCC replace ‘‘par value’’ with discussed in relation to Type IV proposed. ‘‘market value,’’ asserting that par value securities previously, the OCC agrees does not account for obligations Type IV Securities (§ 1.3(e)) with the commenters. Thus, the final The proposal provided that national rule does not include the proposed acquired either at a discount or banks could purchase, without ‘‘homogeneity’’ and 5 percent collateral premium. The OCC has determined, however, limitation, securities that meet the concentration limits but does retain the that par value is the practical and definition of a Type IV security. This requirement that the securities be objective gauge by which to measure proposal relied on the authority granted composed of a pool of loans to value in this context, and the final rule to national banks by SMMEA and CDRI ‘‘numerous’’ obligors. In addition, in order to ensure safe therefore uses par value. to purchase and sell certain mortgage- Some commenters also recommended and sound investment in these and small business-related securities in securities, the final rule requires a Type that the OCC permit banks to use a unlimited amounts. The proposal also incorporated OCC V security to be ‘‘marketable’’ as defined netting approach in calculating interpretations concerning the authority in § 1.2(f). The marketability limitations by which a bank could requirement is in addition to the reduce its ownership exposure (long of a national bank to deal in obligations investment grade requirement for a position) in a security by taking a short that are fully secured by Type I position in that same security. The securities.5 These interpretations reflect 4 Securities Industry Ass’n v. Clarke, 885 F.2d commenters suggested that the OCC the OCC’s consistent approach of 1034 (2d Cir. 1989), cert. denied, 493 U.S. 1070 authorize banks to net their long and looking to the underlying substance of (1990) (national bank authority to securitize assets); short positions in a security because the an instrument to determine whether a Interpretive Letter No. 540 (December 12, 1990), investment limitations in part 1 apply bank may deal in, underwrite, purchase, reprinted in [1990–1991 Transfer Binder] Fed. Banking L. Rep. (CCH) ¶ 83,252 (securitized credit not only to amounts held by a bank but or sell the instrument. In the case of a card receivables); Interpretive Letter No. 514 (May also to obligations that a bank is ‘‘legally Type IV security that is fully secured by 5, 1990), reprinted in [1990–1991 Transfer Binder] committed to purchase and sell.’’ These Type I securities, the ultimate source of Fed. Banking L. Rep. (CCH) ¶ 83,218 (securitized commenters assert that banks should be repayment is Type I securities. The mortgages); Investment Securities Letter No. 29 (August 3, 1988), reprinted in [1988–1989 Transfer able to exclude from their investment proposal did not limit the categories of Binder] Fed. Banking L. Rep. (CCH) ¶ 85,899 limit calculations any securities for Type IV securities in which banks may (investment limits for asset-backed securities which there is both a commitment by a deal, if the securities are fully consisting of GMAC receivables); Interpretive Letter bank to sell and by a third party to buy. collateralized by Type I securities. Thus, No. 416 (February 16, 1988), reprinted in [1988– 1989 Transfer Binder] Fed. Banking L. Rep. (CCH) The OCC agrees that a netting of long under the proposal, a bank’s authority to ¶ 85,640 (securitized automobile loans); No and short position in a particular deal in these securities would be Objection Letter No. 87–9 (December 16, 1987), security may be appropriate for determined with reference to the reprinted in [1988–1989 Transfer Binder] Fed. purposes of calculations under part 1, standards that apply to Type I Banking L. Rep. (CCH) ¶ 84,038 (securitization of commercial loans originated by the bank); and the language of the final rule, noted securities. (The ability of a bank to Interpretive Letter No. 388 (June 16, 1987), above, will accommodate this approach. reprinted in [1988–1989 Transfer Binder] Fed. However, the OCC’s responses on this 5 See Interpretive Letter No. 514 (May 5, 1990), Banking L. Rep. (CCH) ¶ 85,612 (mortgage-backed issue are likely to be more detailed than reprinted in [1990–1991 Transfer Binder] Fed. pass-through certificates); Interpretive Letter No. Banking L. Rep. (CCH) ¶ 83,218; Interpretive Letter 362 (May 22, 1986), reprinted in [1985–1987 is appropriate for a regulation, and will No. 362 (May 22, 1986), reprinted in [1985–1987 Transfer Binder] Fed. Banking L. Rep. (CCH) ¶ be based on the transaction at issue. Transfer Binder] Fed. Banking L. Rep. (CCH) ¶ 85,532 (bonds collateralized by mortgages). Therefore, specific issues on this point 85,532. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63977 securitize and sell loans and other Type V securities are analogous to securitization activities as affirmed by obligations it holds, including loans that secured loans and therefore should be case law.7 National banks engaging in qualify as collateral for Type IV eligible for the 25 percent limit of 12 securitization activities should consult securities, is addressed in § 1.3(g).) U.S.C. 84. OCC Bulletin 96–52 (September 25, Congress made clear that it intended The OCC has carefully considered 1996), which provides guidelines for the OCC and other bank regulatory these comments, and the final rule national banks on their securitization agencies to have authority to limit or replaces the proposed 15 percent activities. restrict bank purchases of securities in limitation with a 25 percent of capital order to ensure the safety and limitation. The OCC believes the 25 Investment Company Shares (§ 1.3(h)) soundness of insured depository percent of capital limit is a prudential The proposal incorporated OCC institutions. See H.R. Conf. Rep. No. limit that provides sufficient protection interpretations concerning the authority 652, 103rd Cong., 2nd Sess. sec. 347, at against undue risk concentrations. This of a national bank to hold instruments 184 (1994). The OCC believes that it can limit parallels the 25 percent credit representing indirect interests in assets ensure safe and sound investments concentration benchmark in the in which the bank could invest involving purchases of small business- Comptroller’s Handbook for National directly.8 Former part 1 did not address related securities, as defined in section Bank Examiners. The Handbook a national bank’s investment in an 3(a)(53)(A) of the Exchange Act, 15 identifies credit concentrations in investment company. The proposal U.S.C. 78c(a)(53)(A), if the OCC permits excess of 25 percent of a bank’s capital permitted a national bank to purchase purchases in unlimited amounts only if as raising potential safety and and sell for its own account shares of a the small business-related securities are soundness concerns. For this purpose, rated in one of the top two rating the Handbook guidance aggregates 7 See, e.g., Interpretive Letter No. 585 (June 8, categories by an NRSRO. In addition, direct and indirect obligations of an 1992), reprinted in [1992–1993 Transfer Binder] Fed. Banking L. Rep. (CCH) ¶ 83,406 (securitized however, the final rule permits a obligor or issuer and also specifically motor vehicle retail installment sales contracts national bank to purchase small contemplates application of the 25 purchased from automobile dealers); Interpretive business-related securities that an percent benchmark to concentrations Letter No. 540 (December 12, 1990), reprinted in NRSRO has rated in the top third or that may result from an acquisition of a [1990–1991 Transfer Binder] Fed. Banking L. Rep. (CCH) ¶ 83,252 (securitized credit card receivables fourth rating category, provided the volume of loans from a single source, originated by bank or purchased from others); bank may not hold small business- regardless of the diversity of the Interpretive Letter No. 514 (May 5, 1990), reprinted related securities from a single issuer if individual borrowers. See Comptroller’s in [1990–1991 Transfer Binder] Fed. Banking L. the aggregate par value of the security Handbook § 215. Accordingly, national Rep. (CCH) ¶ 83,218 (securitized mortgages); Interpretive Letter No. 416 (February 16, 1988), exceeds 25 percent of the bank’s capital banks are urged to monitor carefully reprinted in [1988–1989 Transfer Binder] Fed. and surplus. The OCC has imposed this their aggregate credit exposure to any Banking L. Rep. (CCH) ¶ 85,640 (securitized 25 percent limit as a safety and single obligor or issuer in order to avoid automobile loans); Interpretive Letter No. 388 (June soundness-based prudential limit. imprudent concentrations of credit. 16, 1987), reprinted in [1988–1989 Transfer Binder] This provision is otherwise adopted Fed. Banking L. Rep. (CCH) ¶ 85,612 (sale of Type V Securities (§ 1.3(f)) mortgage-backed pass-through certificates); No as proposed. Objection Letter No. 87–9 (December 16, 1987), The proposal limited a national reprinted in [1988–1989 Transfer Binder] Fed. Securitization (§ 1.3(g)) bank’s holding of Type V securities from Banking L. Rep. (CCH) ¶ 84,038 (securitization of The proposal added this section to commercial loans originated by the bank); any one obligor (or certain related Interpretive Letter No. 362 (May 22, 1986), issuers) to 15 percent of the bank’s incorporate the OCC’s long-standing reprinted in [1985–1987 Transfer Binder] Fed. capital and surplus. The OCC requested position that a national bank may Banking L. Rep. (CCH) ¶ 85,532 (sales of bonds specific comment on whether a higher securitize and sell loan assets that it collateralized by mortgages). Regarding sales of holds. The ability of a bank to sell loans participations in pools of loans, see Letter from limit, such as 25 percent, would be Billy C. Wood, Deputy Comptroller, Multinational sufficient to prevent excess and other obligations through the Banking (May 29, 1981), reprinted in [1981–82 concentration. issuance and sale of certificates Transfer Binder] Fed. Banking L. Rep. (CCH) Four commenters questioned whether evidencing interests in pools of the ¶ 85,275; Letter from Paul M. Homan, Senior assets provides flexibility that can Deputy Comptroller for Bank Supervision (February the OCC intended the term ‘‘obligor,’’ in 1, 1980), reprinted in [1981–82 Transfer Binder] 6 this context, to mean the underlying enhance bank safety and soundness. Fed. Banking L. Rep. (CCH) ¶ 85,213; Letter from borrowers whose notes comprise a The provision is adopted substantially John M. Miller, Deputy Chief Counsel (July 31, security. The OCC did not intend that as proposed and reflects the OCC’s long- 1979), reprinted in [1978–79 Transfer Binder] Fed. Banking L. Rep. (CCH) ¶ 85,182; Letter from Paul M. result. The 15 percent limit applied to standing treatment of national banks’ Homan, Senior Deputy Comptroller for Bank the entity that was issuer of the security, Supervision (April 20, 1979), reprinted in [1978–79 not to each obligor on the loans that 6 See, e.g., Remarks by Alan Greenspan, Transfer Binder] Fed. Banking L. Rep. (CCH) back a particular security. The final rule Chairman, Board of Governors of the Federal ¶ 85,167; Letter from H. Joe Selby, Deputy Reserve System before the American Bankers Comptroller for Operations (October 17, 1978), clarifies this point by substituting the Association (October 8, 1994). See also Statement reprinted in [1978–79 Transfer Binder] Fed. word ‘‘issuer’’ for ‘‘obligor.’’ by Donald G. Coonley, Chief National Bank Banking L. Rep. (CCH) ¶ 85,144; Letter from John One of these commenters noted that Examiner, OCC, Asset Securitization and Secondary G. Heimann, Comptroller of the Currency (May 18, the OCC used the terms obligor and Markets: Hearings Before the Subcomm. on Policy, 1978), reprinted in [1978–79 Transfer Binder] Fed. Research, and Insurance of the Comm. on Banking, Banking L. Rep. (CCH) ¶ 85,116; Letter from Charles issuer interchangeably in other sections Finance and Urban Affairs, 102d Cong., 1st Sess. 2– B. Hall, Deputy Comptroller for Banking Operations of the rule and recommended that the 4 (1991), reprinted in OCC Quarterly Journal (February 14, 1978), reprinted in [1978–79 Transfer OCC clarify the terms. To address this (December 1991); and Joint Statement by Richard Binder] Fed. Banking L. Rep. (CCH) ¶ 85,100; Letter concern, the text of the final rule has Spillenkothen, Director, Division of Banking from Robert Bloom, Acting Comptroller of the Supervision and Regulation, Board of Governors of Currency (March 30, 1977), reprinted in [1973–78 been revised to use the two terms in a the Federal Reserve System, and Donald H. Wilson, Transfer Binder] Fed. Banking L. Rep. (CCH) more precise fashion and rephrase Financial Markets Officer, Federal Reserve Bank of ¶ 97,093. Regarding national bank authority to certain sections to enhance clarity. Chicago, Secondary Market for Commercial Real securitize assets, see Security Pacific v. Clarke, 885 Many commenters recommended that Estate Loans: Hearings Before the Subcomm. on F.2d 1034 (2d Cir. 1989), cert. denied, 493 U.S. Policy, Research, and Insurance of the Comm. on 1070 (1990). the OCC raise the capital limitation for Banking, Finance and Urban Affairs, 102d Cong., 8 Banking Circular 220 (November 21, 1986); An Type V securities from 15 percent to 25 2d Sess. 16–19 (1992), reprinted in 78 Fed. Res. Examiner’s Guide to Investment Products and percent. These commenters asserted that Bull. 492 (1992). Practices at 23 (December 1992). 63978 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations registered investment company, subject However, the OCC recognizes that Income (call report) is properly signed to two requirements: First, the there may be circumstances in which a and submitted; (2) the date on which the investment company’s portfolio must be bank’s purchase of interests in a certain bank’s call report is required to be composed entirely of assets in which exempt investment fund would be submitted; or (3) the date on which the bank could invest directly. Second, acceptable. Therefore, the final rule there is a change in the bank’s capital the amount of the bank’s investment in provides that, on a case-by-case basis, category for purposes of 12 U.S.C. 1831o shares of any one investment company the OCC may determine that interests in and 12 CFR 6.3. is subject to the most stringent other entities, the portfolios of which The OCC received no significant investment limitations applicable to the consist exclusively of investments comments on these paragraphs. The underlying securities and loans that eligible for national banks to hold final rule makes the following changes compose that investment company’s directly, also are permissible for to the proposal to conform to the OCC’s portfolio. national banks. recently proposed changes to its lending The proposal permitted banks to The final rule also relocates the limit regulation, 12 CFR part 32. See 61 purchase shares in investment provision that limited the amount of the FR 37227 (July 17, 1996). The final rule companies, including mutual funds, bank’s investment in shares of any one requires a bank to determine its that are registered under section 8 of the investment company to the most investment limitations as of the most Investment Company Act of 1940 (’40 stringent investment limitations recent of: (1) The last day of the Act), 15 U.S.C. 80a-8. See § 1.2(c) applicable to the underlying securities preceding calendar quarter; or (2) the (defining ‘‘investment company’’). The that compose that investment date on which there is a change in the OCC requested comment on whether the company’s portfolio. The OCC has bank’s capital category for purposes of OCC should permit banks to purchase determined that, for clarity, this 12 U.S.C. 1831o and 12 CFR 6.3. shares of limited partnerships with limitation belongs in § 1.4, which The final rule prescribes an effective fewer than 100 investors, i.e., a governs the calculation of limits. As date for a bank’s investment limit. The partnership that would not qualify as an discussed later, the final rule also final rule provides that an investment investment company within the changes this limitation. limit that is calculated as of the last day meaning of section 3(c)(1) of the ’40 Act, of the preceding calendar quarter if the partnerships’ portfolios consist Securities Held Based on Estimates of becomes effective on the earlier of the solely of Type I securities that the bank Obligor’s Performance (§ 1.3(i)) date on which the bank’s call report is may purchase and sell for its own The proposal retained the flexibility submitted or the date on which the account. The ’40 Act’s definition of contained in the former rule that bank’s call report is required to be ‘‘investment company’’ excludes issuers permitted a bank, notwithstanding the submitted. An investment limit whose outstanding securities are general definition of an investment calculated as of the date on which there beneficially owned by 100 or fewer security in § 1.2(e), to treat certain debt is a change in the bank’s capital persons and who are not making, or do securities, (such as pools of mortgage or category becomes effective on that day. not presently propose to make, a public business loans in moderate and low- The effective date requirements are offering of their securities. income areas or community added in a new paragraph § 1.4(b). The Several commenters recommended development loans), as investment final rule moves proposed paragraph that the OCC permit banks to purchase securities when the bank concludes, on § 1.4(b), which stated the OCC’s shares in entities with 100 or fewer the basis of estimates that the bank authority to require more frequent investors, although these entities would reasonably believes are reliable, that the calculations, to § 1.4(c), to accommodate not be subject to ’40 Act regulation. The obligor will be able to meet its the insertion of new paragraph § 1.4(b) commenters asserted that so long as the obligations under that security. and otherwise adopts that paragraph pass-through entity allows a bank to The OCC requested comment on § 1.4(c) as it was proposed. invest solely in investments that the whether it should provide further Calculation of Type III and Type V bank could purchase directly for its own clarification of the standards applicable Securities Holdings (§ 1.4(d)) account, the number of investors should to securities held based on estimates of not matter. obligor’s performance and, if so, what Proposed § 1.4(c) limited a national One commenter opposed expanding clarification is needed. bank’s holdings of Type III investment the proposed definition asserting that The majority of the commenters on securities of any one issuer/obligor (or the ’40 Act establishes a regulatory this section asserted that it would not be certain related issuer/obligors) to 10 framework for investment companies helpful for the OCC to provide further percent of the bank’s capital and that addresses the unique risks posed by clarification of the standards applicable surplus. The proposal limited a national pooled investment vehicles. The to securities held based on estimates of bank’s holdings of Type V securities of commenter asserted that to allow an obligor’s performance. Therefore, the any one issuer/obligor to 15 percent of national banks to invest in entities not OCC adopts the final rule as proposed. the bank’s capital and surplus. In subject to the ’40 Act, for their own calculating these capital limits, the accounts, could leave bank capital open Calculation of Limits (§ 1.4) proposal required a bank to combine: (1) to substantial risk. The proposal added a section that Obligations of issuer/obligors that are The OCC agrees with this commenter consolidated the calculation of limits related directly or indirectly through that the absence of a regulatory scheme, requirements of part 1. common control; and (2) securities of such as the ’40 Act, could pose Proposed paragraphs (a) and (b) § 1.4 issuer/obligors that are credit-enhanced additional risk for national banks. prescribed the dates for calculating by the same entity. Therefore, the final rule adopts the capital and surplus and stated the OCC’s The OCC requested comment on other definition of ‘‘investment company’’ as authority to require more frequent bases upon which a bank should proposed in § 1.2(c). Further, the final calculations. The proposal required a combine its holdings when calculating rule does not expressly permit banks to bank to calculate its investment its investment in Type III or Type V purchase shares from entities with 100 limitations as of the most recent of: (1) securities of any one issuer/obligor. or fewer investors that are exempt from The date on which the bank’s Specifically, the OCC asked whether a ’40 Act registration. Consolidated Report of Condition and bank should combine obligations that Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63979 are predominately collateralized by safety and soundness concerns. For this company shares, especially when the loans made by the same originator or by purpose, the Handbook guidance does company’s portfolio contains only a originators that are related directly or aggregate direct and indirect obligations proportionately small amount of indirectly through common control. In of an issuer/obligor. Thus, if a bank’s securities subject to an investment limit. addition, commenters were asked to aggregate holdings of Type III and Type As the commenter noted, the treatment address whether and under what V securities issued by the same issuer/ prescribed by the proposal would circumstances an issuer or affiliate of obligor exceed 25 percent of the bank’s restrict the bank’s purchase of the shares the issuer would provide a guarantee or capital, the bank, as a matter of safety of the hypothetical mutual fund other form of credit enhancement for and soundness, should have carefully described above to 10 percent of capital Type V securities that could be a source considered whether, and be able to and surplus even if the fund’s portfolio of credit exposure of the investing bank demonstrate why, the characteristics of was not evenly divided between Type I to the issuer or its affiliate. Comment the Type III and Type V securities it and Type III securities but contained 95 was also invited on whether the 15 holds do not entail an undue percent Type I and 5 percent Type III percent investment limitation or a lower concentration.9 securities. limitation is appropriate under these As noted in the earlier discussion of The commenter recommended that circumstances. § 1.3(f), the final rule changes the Type the OCC permit banks to use a ‘‘pass- Five commenters stated that the OCC V limitation from 15 percent to 25 through’’ analysis instead, that is, that should not require banks to combine percent of capital and surplus. The final the OCC permit banks to disregard the obligations of issuer/obligors of Type V rule also changes proposed paragraph investment company level for purposes securities that are related through § 1.3(c) to paragraph § 1.3(d) to of applying the investment limits and common control. These commenters accommodate the insertion of new allow banks to apply the applicable asserted that the risk assessment for the paragraph § 1.3(b). limit only to the pro rata portion of the securities is based on the underlying securities. This commenter creditworthiness of the underlying Calculation of Investment Company also noted that allowing pass-through borrowers whose loans collateralize the Holdings (§ 1.4(e)) treatment is more consistent with the issuance, and on the credit In § 1.4(d), the proposal required a requirement in proposed § 1.4(d), by enhancement rather than on the bank to use reasonable efforts to which banks must make ‘‘reasonable creditworthiness of the Type V issuer/ calculate and combine its pro rata share efforts’’ to aggregate their direct and obligor. They stated that, if the parent of a particular security in the portfolio indirect holdings of a security. company provides no guarantee, there is of each investment company with the The final rule consolidates the two no common source of risk and that bank’s direct holdings of securities of investment limit requirements set forth applying a limitation on common that issuer. In § 1.3(h), the proposal in §§ 1.3(h) and 1.4(d) into a single sources of credit enhancement is required the bank to apply the most investment limit calculation provision, sufficient to safeguard against risk stringent investment limit that would paragraph § 1.4(e). The final rule also concentrations. Similarly, a few apply to the underlying securities in the modifies these provisions significantly commenters also recommended that the investment company’s portfolio. in consideration of the comment OCC remove the requirement to For example, if the investment received. aggregate holdings of entities under company holds a Type III security, the The OCC agrees that the OCC should direct or indirect common control for proposal limited the bank’s holdings of give banks the flexibility to apply a Type III securities. They asserted that shares of that investment company to 10 pass-through analysis to determine the the requirement would be unduly percent of the bank’s capital and applicable investment limit if the bank burdensome for banks. surplus. The proposal would thereby aggregates its pro rata holdings of a The OCC continues to believe that have codified Banking Circular 220 (BC security in an investment company with combining obligations of issuer/obligors 220) (Nov. 21, 1986), which authorizes the bank’s direct and other indirect that are related through common control national banks to purchase the shares of holdings of that security. Therefore, the represents a prudent supervisory investment companies whose portfolios final rule permits banks to look through response, given the effect of common are comprised entirely of bank-eligible to the securities in the portfolio of an control on underwriting standards and securities. investment company and apply the servicing effectiveness, and especially One commenter asserted that appropriate limitation to the aggregate in light of other burden reducing application of the most restrictive limit of the bank’s pro rata interest in changes the OCC has made to the final at the investment company level securities of a particular issuer that are rule. Thus, the final rule retains the unnecessarily constrains a national held in an investment company’s requirement that banks aggregate issuer/ bank’s ability to buy investment portfolio and the bank’s direct holdings obligors of Type III and Type V of the same securities. securities, respectively, that are under 9 Similarly, a bank may acquire debt obligations The OCC recognizes that some common ownership or control. of an issuer/obligor pursuant to the bank’s authority institutions may prefer the method set The comments demonstrate that the to make loans, (provided appropriate underwriting forth in proposed § 1.3(h), which proposal left unclear whether it required standards are met) rather than under its authority implemented BC 220 and required to hold investment securities. See OCC Interpretive banks to aggregate Type III and Type V Letter No. 663, reprinted in [1994–1995 Transfer banks to apply the most stringent securities issued by the same issuer/ Binder] Fed. Banking L. Rep. (CCH) ¶ 83,611 (June applicable investment limit to the obligor. The final rule adds a new 8, 1995); OCC Interpretive Letter No. 600, reprinted bank’s entire holdings of a particular provision to clarify that the aggregation in [1992–1993 Transfer Binder] Fed. Banking L. investment company. Because Rep. (CCH) ¶ 83,427 (July 31, 1992); OCC Banking requirement applies separately to Type Circular 181 (Rev) (Purchase of loans in whole or calculating pro rata holdings of III and Type V securities. The OCC in part-participations) (August 2, 1984). In such a securities that the bank holds through emphasizes, however, that the case, the holding would be permissible under a an investment company may be Comptroller’s Handbook for National separate authority of the bank, but the credit burdensome for some institutions, the concentration standards described in the Bank Examiners identifies credit Comptroller’s Handbook would still be applicable final rule gives a bank the option to concentrations in excess of 25 percent of and could curtail the amount of the bank’s holdings apply the most stringent investment a bank’s capital as raising potential under the two different sources of authority. limit to the bank’s entire holdings of a 63980 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations particular investment company if the The OCC received no comments on why any additional holding period is investment company is diversified. An this section. However, the OCC has needed for securities acquired DPC. investment company is diversified if its determined that requiring a bank to Nonconforming Investments (§ 1.8) holdings of the securities of any one write down the carrying value of a issuer do not exceed 5 percent of the security independently of the The proposal clarified that a bank investment company’s total portfolio. conversion feature is not consistent with does not violate an applicable For institutions that choose to generally accepted accounting investment limitation when an calculate an investment limit using the principles (GAAP). Therefore, the final investment in securities that was legal most stringent applicable limit, the final rule eliminates this requirement. While when made becomes nonconforming as rule does not require a bank to aggregate the final rule does not specifically state a result of certain enumerated events, if the investment company’s holdings of a that a bank must account for convertible the bank exercises reasonable efforts to security with the bank’s direct holdings securities in accordance with GAAP, it bring the investment into conformity of the security. The OCC believes that is the OCC’s policy that if the OCC is with applicable limitations. The OCC asked commenters to the 5 percent diversification silent on accounting treatment, the OCC address whether: (1) the phrase requirement applicable to diversified requires banks to conform with GAAP. ‘‘reasonable efforts’’ needs additional investment companies provides The final rule adopts as proposed the clarification; (2) the OCC should require sufficient protection against risk provision prohibiting national banks a bank to make ‘‘reasonable efforts’’ to concentrations when a bank elects to from purchasing securities convertible bring into conformity an investment apply the most stringent investment into stock at the option of the issuer. where the quality of a security limit to the bank’s investment in the Securities Held in Satisfaction of Debts deteriorates so that the security is no investment company. Previously Contracted; Holding Period; longer an investment security; and (3) Safe and Sound Banking Practices; Disposal; Accounting Treatment; Non- any other events should be added to the Credit Information Required (§ 1.5) Speculative Purpose (§ 1.7) list of circumstances that may cause an The proposal added new provisions to investment in securities to become The proposal changed the clarify how a bank must treat securities nonconforming. requirement that, in addition to the held in satisfaction of debts previously Two commenters recommended that specific requirements of part 1, a bank contracted (DPC). These provisions the OCC eliminate the requirement that must exercise ‘‘prudent banking embodied standards prescribed in the a bank must make reasonable efforts to judgment’’ to a requirement that a bank OCC’s regulation on other real estate conform an asset to the appropriate must adhere to ‘‘safe and sound banking owned (OREO), 12 CFR part 34, and the investment limit. The commenters practices,’’ and identified certain risks OCC’s related interpretation, see stated that the requirement should not that a bank should consider as part of Interpretive Letter No. 604 (October 8, apply because the factor that caused safe and sound banking. The proposal 1992). The proposal provided that a nonconformity is beyond the bank’s also required each bank to obtain credit national bank holding securities in ability to control. One commenter noted information that demonstrates the satisfaction of DPC may do so for a that the reasonable efforts language ability of issuer/obligors to satisfy their period of five years from the date that might require a bank to sell securities at obligations and to maintain records that ownership of the securities was an exaggerated loss. Similarly, two document the bank’s compliance with originally transferred to the bank, plus, commenters asked the OCC to clarify this section. if permitted by the OCC, an additional that a bank will have a substantial The OCC received no comments on five years. The proposal also required a period of time before it is required to this section. The proposal required bank to mark-to-market securities held sell a non-conforming investment if the banks to consider market, interest rate, in satisfaction of DPC. sale would result in a loss to the bank. liquidity, legal, and operations and The OCC received one comment on The OCC does not intend ‘‘reasonable systems risks, as well as credit risk. The this section. The commenter suggested efforts’’ to mean that a bank should sell final rule conforms the list of risks that the OCC should avoid specifying an a nonconforming investment at an identified by the proposal to the risks accounting treatment in the rule. exaggerated or unnecessary loss. The that are now specified in the OCC’s risk- Instead, the commenter recommended OCC intends a bank to use sound based supervision approach. The final that a reference be made to the call banking judgment to determine when it rule requires banks to consider interest report instructions. would be inappropriate to sell or reduce rate, credit, liquidity, price, foreign The OCC agrees that it is unnecessary its holdings of a nonconforming exchange, transaction, compliance, to specify the accounting treatment for investment. In the final rule, the OCC strategic, and reputation risks. The final DPC securities in the regulation. adopts the requirement that a bank must rule also makes minor stylistic changes Accordingly, the final rule removes the use reasonable efforts to bring an to this section. reference to mark-to-market accounting investment into conformity with the and simply says that banks should Convertible Securities (§ 1.6) understanding that ‘‘reasonable efforts’’ account for DPC securities consistent should not pose significant harm to the The proposal set forth the restrictions with GAAP. In addition, the OCC bank if a reasonable probability exists on investment in certain convertible emphasizes that extensions of the five- that a loss can be avoided in the securities. The proposal required a bank year holding period for shares acquired foreseeable future. The final rule makes to write down the carrying value of a DPC are not automatic. While the five minor clarifying changes to this section. convertible security to an amount that year holding period, plus extensions up represents the value of the security to an additional five years, is based on Amortization of Premiums (Former considered independently of the the OCC’s OREO standards, the OCC § 1.10) conversion feature or attached stock expects that a bank should, in general, The proposal removed former § 1.10 purchase warrant. The proposal also be able to dispose of DPC securities because the OCC believes that GAAP prohibited a bank from purchasing more quickly than real estate. appropriately governs the treatment of securities convertible into stock at the Accordingly, the OCC will require a premiums. GAAP requires that a bank option of the issuer. clearly convincing demonstration of defer recognition of a premium paid for Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63981 an investment security and amortize the explanatory comments that the OCC The OCC received no comments on premium over the period to maturity of believes are unnecessary in light of this section, which is adopted as the security. In contrast, former § 1.10 other proposed changes to part 1. proposed. permitted a bank to charge off the entire The OCC received no comments on Type II Securities; Guidelines for premium at the time of purchase or to the proposal’s removal of this section. amortize the premium in any manner Obligations Issued for University and the bank considers appropriate as long Taxing Powers of a State or a Political Housing Purposes (§ 1.130) as the premium is extinguished entirely Subdivision (§ 1.110) The proposal streamlined former at or before the maturity of the security. The OCC received no comments on The proposal shortened former § 1.140, clarified the types of issuers the removal of this section, which is § 1.130, removed portions that are no whose obligations qualify as Type II therefore removed in the final rule. longer necessary, and renumbered it securities, and renumbered the section § 1.110. The proposal added new text to § 1.130. Interpretations provide standards for determining when The OCC received no comments on Indirect General Obligations (§ 1.100) obligations that are expressly or this section, which is adopted as The proposal clarified and shortened implicitly dependent upon voter or proposed. former § 1.120 and renumbered it legislative authorization of Effective Date § 1.100. The proposal removed former appropriations are considered paragraphs (f) ‘‘Tax anticipation notes,’’ supported by the full faith and credit of The final rule takes effect on and (g) ‘‘Bond anticipation notes’’ as a State or political subdivision. December 31, 1996. The OCC finds good unnecessary. The OCC received no significant cause for prescribing this year-end The OCC received no significant comments on this section, which is effective date in that it will enable comments on this section, which is adopted as proposed. national banks to adjust their practices adopted as proposed. Prerefunded or Escrowed Bonds and to conform with the regulation at the Eligibility of Securities for Purchase, Obligations Secured by Type I Securities beginning of a calendar quarter, which Dealing in, and Underwriting by (§ 1.120) also marks the beginning of a reporting National Banks; General Guidelines period for purposes of the Consolidated (Former § 1.100) The proposal made former § 1.120(e) Report of Condition and Income (Call The proposal removed former § 1.100, proposed § 1.120. The OCC proposed no Report). 5 U.S.C. 553(d)(3). which contained introductory and substantive changes to this provision.

DERIVATION TABLE [Only substantive modifications, additions and changes are indicated]

Revised provision Original provision Comments

§ 1.1 ...... §§ 1.1, 1.2 ...... Modified. § 1.2(a) ...... Added. § 1.2(b) ...... § 1.3(g) ...... Modified. § 1.2(c) ...... Ð ...... Added. § 1.2(d) ...... Ð ...... Added. § 1.2(e) ...... § 1.3(b) ...... Modified. § 1.2(f) ...... § 1.5(a) ...... Significant change. § 1.2(g) ...... Ð ...... Added. § 1.2(h) ...... § 1.3(f) ...... § 1.2(i) ...... §§ 1.3(c), 1.110 ...... Modified. § 1.2(j) ...... § 1.3(d) ...... Modified. § 1.2(k) ...... § 1.3(e) ...... Modified. § 1.2(l) ...... Ð ...... Added. § 1.2(m) ...... Ð ...... Added. § 1.3(a) ...... Removed. § 1.3(a) ...... § 1.4 ...... Modified. § 1.3(b) ...... §§ 1.3(d), 1.6, 1.7(a) ...... Modified. § 1.3(c) ...... §§ 1.3(e), 1.7(a) ...... Modified. § 1.3(d) ...... § 1.7(a), 12 CFR 7.1021 ...... Modified. § 1.3(e) ...... Ð ...... Added. § 1.3(f) ...... Ð ...... Added. § 1.3(g) ...... Ð ...... Added. § 1.3(h) ...... Ð ...... Added. § 1.3(i) ...... §§ 1.5(b), 1.7(b) ...... Modified. § 1.4 ...... Ð ...... Added. § 1.5 ...... § 1.8 ...... Significant change. § 1.6 ...... § 1.9 ...... Modified. § 1.7(a) ...... § 1.11 ...... § 1.7(b) ...... Ð ...... Added. § 1.7(c) ...... Removed. § 1.7(d) ...... Added. § 1.7(c) ...... Ð ...... Added. § 1.8 ...... Ð ...... Added. § 1.10 ...... Removed. § 1.100 ...... Removed. § 1.100(a) ...... § 1.120 ...... 63982 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

DERIVATION TABLEÐContinued [Only substantive modifications, additions and changes are indicated]

Revised provision Original provision Comments

§ 1.100(b)(1) ...... § 1.120(a) ...... § 1.100(b)(2) ...... § 1.120(b) ...... § 1.100(b)(3) ...... § 1.120(c) ...... § 1.100(b)(4) ...... § 1.120(d) ...... § 1.110 ...... § 1.130 ...... Modified. § 1.120(f) ...... Removed. § 1.120(g) ...... Removed. § 1.120 ...... § 1.120(e) ...... § 1.130(a) ...... § 1.140(a) ...... Modified. § 1.130(b) ...... § 1.140(b) ...... § 1.130(c) ...... § 1.140(c) ...... Modified.

Regulatory Flexibility Act copies to the Legislative and Regulatory discussed in the preamble, the final rule It is hereby certified that this Activities Division, Office of the has the effect of reducing burden and regulation will not have a significant Comptroller of the Currency, 250 E increasing the discretion of national economic impact on a substantial Street, SW, Washington, DC 20219. banks regarding their sound investment The collection of information number of small entities. Accordingly, a activities. requirements in this final rule are found regulatory flexibility analysis is not in 12 CFR 1.3 and 1.7. This information List of Subjects required. This regulation will reduce the is required to enable the OCC to make regulatory burden on national banks, 12 CFR Part 1 determinations as to the safety and regardless of size, by simplifying and soundness of activities. The likely Banks, banking, National banks, clarifying existing regulatory respondents/recordkeepers are national Reporting and recordkeeping requirements. banks. requirements, Securities. Paperwork Reduction Act of 1995 Estimated average annual burden 12 CFR Part 7 hours per respondent/recordkeeper: The OCC invites comments on: 18.4 hours. Credit, Insurance, Investments, (1) Whether the collections of Estimated number of respondents National banks, Reporting and information contained in this notice of and/or recordkeepers: 25. recordkeeping requirements, Securities, final rule are necessary for the proper Estimated total annual reporting and Surety bonds. performance of OCC functions, recordkeeping burden: 460 hours. including whether the information has Start-up costs to respondents: None. Authority and Issuance practical utility; (2) The accuracy of the estimate of the Executive Order 12866 For the reasons set out in the preamble, chapter I of title 12 of the burden of the information collections; The OCC has determined that this Code of Federal Regulations is amended (3) Ways to enhance the quality, final rule is not a significant regulatory as set forth below: utility, and clarity of the information to action. be collected; 1. Part 1 is revised to read as follows: (4) Ways to minimize the burden of Unfunded Mandates Act of 1995 the information collections on Section 202 of the Unfunded PART 1ÐINVESTMENT SECURITIES respondents, including through the use Mandates Reform Act of 1995 Sec. of automated collection techniques or (Unfunded Mandates Act) (signed into 1.1 Authority, purpose, and scope. other forms of information technology; law on March 22, 1995) requires that an 1.2 Definitions. and agency prepare a budgetary impact 1.3 Limitations on dealing in, underwriting, (5) Estimates of capital or startup statement before promulgating a rule and purchase and sale of securities. costs and costs of operation, that includes a Federal mandate that 1.4 Calculation of limits. maintenance, and purchase of services may result in the expenditure by State, 1.5 Safe and sound banking practices; credit to provide information. local, and tribal governments, in the information required. Respondents/recordkeepers are not aggregate, or by the private sector, of 1.6 Convertible securities. 1.7 Securities held in satisfaction of debts required to respond to these collections $100 million or more in any one year. previously contracted; holding period; of information unless this displays a If a budgetary impact statement is disposal; accounting treatment; non- currently valid OMB control number. required, Section 205 of the Unfunded speculative purpose. The collection of information Mandates Act also requires an agency to 1.8 Nonconforming investments. requirements contained in this final rule identify and consider a reasonable Interpretations have been approved by the Office of number of regulatory alternatives before Management and Budget under OMB promulgating a rule. Because the OCC 1.100 Indirect general obligations. control number 1557–0205 in has determined that this final rule will 1.110 Taxing powers of a State or political subdivision. accordance with the Paperwork not result in expenditures by State, 1.120 Prerefunded or escrowed bonds and Reduction Act of 1995 (44 U.S.C. local, and tribal governments or by the obligations secured by Type I securities. 3507(d)). Comments on the collections private sector of $100 million or more 1.130 Type II securities; guidelines for of information should be sent to the in any one year, the OCC has not obligations issued for university and Office of Management and Budget, prepared a budgetary impact statement housing purposes. Paperwork Reduction Project (1557– or specifically addressed the regulatory Authority: 12 U.S.C. 1 et seq., 24 (Seventh), 0205), Washington, DC 20503, with alternatives considered. Nevertheless, as and 93a. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63983

§ 1.1 Authority, purpose, and scope. of the Investment Company Act of 1940, account, including qualified Canadian (a) Authority. This part is issued 15 U.S.C. 80a–8. government obligations; and pursuant to 12 U.S.C. 1 et seq., 12 U.S.C. (d) Investment grade means a security (6) Other securities the OCC 24 (Seventh), and 12 U.S.C. 93a. that is rated in one of the four highest determines to be eligible as Type I (b) Purpose This part prescribes rating categories by: securities under 12 U.S.C. 24 (Seventh). standards under which national banks (1) Two or more NRSROs; or (j) Type II security means an may purchase, sell, deal in, underwrite, (2) One NRSRO if the security has investment security that represents: and hold securities, consistent with the been rated by only one NRSRO. (1) Obligations issued by a State, or a authority contained in 12 U.S.C. 24 (e) Investment security means a political subdivision or agency of a (Seventh) and safe and sound banking marketable debt obligation that is not State, for housing, university, or practices. predominantly speculative in nature. A dormitory purposes; (2) Obligations of international and (c) Scope. The standards set forth in security is not predominantly multilateral development banks and this part apply to national banks, speculative in nature if it is rated organizations listed in 12 U.S.C. 24 District of Columbia banks, and federal investment grade. When a security is not rated, the security must be the credit (Seventh); branches of foreign banks. Further, (3) Other obligations listed in 12 pursuant to 12 U.S.C. 335, State banks equivalent of a security rated investment grade. U.S.C. 24 (Seventh) as permissible for a that are members of the Federal Reserve bank to deal in, underwrite, purchase, System are subject to the same (f) Marketable means that the security: (1) Is registered under the Securities and sell for the bank’s own account, limitations and conditions that apply to Act of 1933, 15 U.S.C. 77a et seq.; subject to a limitation per obligor of 10 national banks in connection with (2) Is a municipal revenue bond percent of the bank’s capital and purchasing, selling, dealing in, and exempt from registration under the surplus; and underwriting securities and stock. In Securities Act of 1933, 15 U.S.C. (4) Other securities the OCC addition to activities authorized under 77c(a)(2); determines to be eligible as Type II this part, foreign branches of national (3) Is offered and sold pursuant to securities under 12 U.S.C. 24 (Seventh). banks are authorized to conduct Securities and Exchange Commission (k) Type III security means an international activities and invest in Rule 144A, 17 CFR 230.144A, and rated investment security that does not securities pursuant to 12 CFR part 211. investment grade or is the credit qualify as a Type I, II, IV, or V security, § 1.2 Definitions. equivalent of investment grade; or such as corporate bonds and municipal (4) Can be sold with reasonable revenue bonds. (a) Capital and surplus means: promptness at a price that corresponds (l) Type IV security means: (1) A bank’s Tier 1 and Tier 2 capital reasonably to its fair value. (1) A small business-related security calculated under the OCC’s risk-based (g) NRSRO means a nationally as defined in section 3(a)(53)(A) of the capital standards set forth in appendix recognized statistical rating Securities Exchange Act of 1934, 15 A to 12 CFR part 3 (or comparable organization. U.S.C. 78c(a)(53)(A), that is rated capital guidelines of the appropriate (h) Political subdivision means a investment grade or is the credit Federal banking agency) as reported in county, city, town, or other municipal equivalent thereof, that is fully secured the bank’s Consolidated Report of corporation, a public authority, and by interests in a pool of loans to Condition and Income filed under 12 generally any publicly-owned entity numerous obligors. U.S.C. 161 (or under 12 U.S.C. 1817 in that is an instrumentality of a State or (2) A commercial mortgage-related the case of a state member bank); plus of a municipal corporation. security that is offered or sold pursuant (2) The balance of a bank’s allowance (i) Type I security means: to section 4(5) of the Securities Act of for loan and lease losses not included in (1) Obligations of the United States; 1933, 15 U.S.C. 77d(5), that is rated the bank’s Tier 2 capital, for purposes of (2) Obligations issued, insured, or investment grade or is the credit the calculation of risk-based capital guaranteed by a department or an equivalent thereof, or a commercial described in paragraph (a)(1) of this agency of the United States mortgage-related security as described section, as reported in the bank’s Government, if the obligation, in section 3(a)(41) of the Securities Consolidated Report of Condition and insurance, or guarantee commits the full Exchange Act of 1934, 15 U.S.C. Income filed under 12 U.S.C. 161 (or faith and credit of the United States for 78c(a)(41), that is rated investment under 12 U.S.C. 1817 in the case of a the repayment of the obligation; grade in one of the two highest state member bank). (3) Obligations issued by a investment grade rating categories, and (b) General obligation of a State or department or agency of the United that represents ownership of a political subdivision means: States, or an agency or political promissory note or certificate of interest (1) An obligation supported by the subdivision of a State of the United or participation that is directly secured full faith and credit of an obligor States, that represent an interest in a by a first lien on one or more parcels of possessing general powers of taxation, loan or a pool of loans made to third real estate upon which one or more including property taxation; or parties, if the full faith and credit of the commercial structures are located and (2) An obligation payable from a United States has been validly pledged that is fully secured by interests in a special fund or by an obligor not for the full and timely payment of pool of loans to numerous obligors. possessing general powers of taxation, interest on, and principal of, the loans (3) A residential mortgage-related when an obligor possessing general in the event of non-payment by the third security that is offered and sold powers of taxation, including property party obligor(s); pursuant to section 4(5) of the Securities taxation, has unconditionally promised (4) General obligations of a State of Act of 1933, 15 U.S.C. 77d(5), that is to make payments into the fund or the United States or any political rated investment grade or is the credit otherwise provide funds to cover all subdivision; equivalent thereof, or a residential required payments on the obligation. (5) Obligations authorized under 12 mortgage-related security as described (c) Investment company means an U.S.C. 24 (Seventh) as permissible for a in section 3(a)(41) of the Securities investment company, including a national bank to deal in, underwrite, Exchange Act of 1934, 15 U.S.C. mutual fund, registered under section 8 purchase, and sell for the bank’s own 78c(a)(41)), that is rated investment 63984 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations grade in one of the two highest Type IV securities for its own account. portfolio of the entity consists investment grade rating categories, and A national bank may deal in Type IV exclusively of assets that a national that does not otherwise qualify as a securities that are fully secured by Type bank may purchase and sell for its own Type I security. I securities. Except as described in account under this part. (m) Type V security means a security paragraph (e)(2) of this section, the (i) Securities held based on estimates that is: amount of the Type IV securities that a of obligor’s performance. (1) (1) Rated investment grade; bank may purchase and sell is not Notwithstanding §§ 1.2(d) and (e), a (2) Marketable; limited to a specified percentage of the national bank may treat a debt security (3) Not a Type IV security; and bank’s capital and surplus. as an investment security for purposes (4) Fully secured by interests in a pool (2) Limitation on small business- of this part if the bank concludes, on the of loans to numerous obligors and in related securities rated in the third and basis of estimates that the bank which a national bank could invest fourth highest rating categories by an reasonably believes are reliable, that the directly. NRSRO. A national bank may hold obligor will be able to satisfy its small business-related securities, as obligations under that security, and the § 1.3 Limitations on dealing in, defined in section 3(a)(53)(A) of the underwriting, and purchase and sale of bank believes that the security may be securities. Securities Exchange Act of 1934, 15 sold with reasonable promptness at a U.S.C. 78c(a)(53)(A), of any one issuer price that corresponds reasonably to its (a) Type I securities. A national bank with an aggregate par value not may deal in, underwrite, purchase, and fair value. exceeding 25 percent of the bank’s (2) The aggregate par value of sell Type I securities for its own capital and surplus if those securities securities treated as investment account. The amount of Type I are rated investment grade in the third securities under paragraph (i)(1) of this securities that the bank may deal in, or fourth highest investment grade section may not exceed 5 percent of the underwrite, purchase, and sell is not rating categories. In applying this bank’s capital and surplus. limited to a specified percentage of the limitation, a national bank shall take bank’s capital and surplus. account of securities that the bank is § 1.4 Calculation of limits. (b) Type II securities. A national bank legally committed to purchase or to sell (a) Calculation date. For purposes of may deal in, underwrite, purchase, and in addition to the bank’s existing determining compliance with 12 U.S.C. sell Type II securities for its own holdings. No percentage of capital and 24 (Seventh) and this part, a bank shall account, provided the aggregate par surplus limit applies to small business determine its investment limitations as value of Type II securities issued by any related securities rated investment grade of the most recent of the following one obligor held by the bank does not in the highest two investment grade dates: exceed 10 percent of the bank’s capital rating categories. (1) The last day of the preceding and surplus. In applying this limitation, (f) Type V securities. A national bank calendar quarter; or a national bank shall take account of may purchase and sell Type V securities (2) The date on which there is a Type II securities that the bank is legally for its own account provided that the change in the bank’s capital category for committed to purchase or to sell in aggregate par value of Type V securities purposes of 12 U.S.C. 1831o and 12 CFR addition to the bank’s existing holdings. issued by any one issuer held by the 6.3. (c) Type III securities. A national bank bank does not exceed 25 percent of the (b) Effective date. (1) A bank’s may purchase and sell Type III bank’s capital and surplus. In applying investment limit calculated in securities for its own account, provided this limitation, a national bank shall accordance with paragraph (a)(1) of this the aggregate par value of Type III take account of Type V securities that section will be effective on the earlier of securities issued by any one obligor the bank is legally committed to the following dates: held by the bank does not exceed 10 purchase or to sell in addition to the (i) The date on which the bank’s percent of the bank’s capital and bank’s existing holdings. Consolidated Report of Condition and surplus. In applying this limitation, a (g) Securitization. A national bank Income (Call Report) is submitted; or national bank shall take account of Type may securitize and sell assets that it (ii) The date on which the bank’s III securities that the bank is legally holds, as a part of its banking business. Consolidated Report of Condition and committed to purchase or to sell in The amount of securitized loans and Income is required to be submitted. addition to the bank’s existing holdings. obligations that a bank may sell is not (2) A bank’s investment limit (d) Type II and III securities; other limited to a specified percentage of the calculated in accordance with paragraph investment securities limitations. A bank’s capital and surplus. (a)(2) of this section will be effective on national bank may not hold Type II and (h) Investment company shares—(1) the date that the limit is to be III securities issued by any one obligor General. A national bank may purchase calculated. with an aggregate par value exceeding and sell for its own account investment (c) Authority of OCC to require more 10 percent of the bank’s capital and company shares provided that: frequent calculations. If the OCC surplus. However, if the proceeds of (i) The portfolio of the investment determines for safety and soundness each issue are to be used to acquire and company consists exclusively of assets reasons that a bank should calculate its lease real estate and related facilities to that the national bank may purchase investment limits more frequently than economically and legally separate and sell for its own account under this required by paragraph (a) of this section, industrial tenants, and if each issue is part; and the OCC may provide written notice to payable solely from and secured by a (ii) The bank’s holdings of investment the bank directing the bank to calculate first lien on the revenues to be derived company shares do not exceed the its investment limitations at a more from rentals paid by the lessee under limitations in § 1.4(e). frequent interval. The bank shall net noncancellable leases, the bank may (2) Other issuers. The OCC may thereafter calculate its investment limits apply the 10 percent investment determine that a national bank may at that interval until further notice. limitation separately to each issue of a invest in an entity that is exempt from (d) Calculation of Type III and Type single obligor. registration as an investment company V securities holdings—(1) General. In (e) Type IV securities—(1) General. A under section 3(c)(1) of the Investment calculating the amount of its investment national bank may purchase and sell Company Act of 1940, provided that the in Type III or Type V securities issued Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63985 by any one obligor, a bank shall reasonably believes that the obligor will (b) A bank shall exercise reasonable aggregate: be able to satisfy the obligation. efforts to bring an investment that is (i) Obligations issued by obligors that (c) Each bank shall maintain records nonconforming as a result of events are related directly or indirectly through available for examination purposes described in paragraph (a) of this common control; and adequate to demonstrate that it meets section into conformity with this part (ii) Securities that are credit enhanced the requirements of this part. The bank unless to do so would be inconsistent by the same entity. may store the information in any with safe and sound banking practices. (2) Aggregation by type. The manner that can be readily retrieved and aggregation requirement in paragraph reproduced in a readable form. Interpretations (d)(1) of this section applies separately § 1.100 Indirect general obligations. to the Type III and Type V securities § 1.6 Convertible securities. held by a bank. A national bank may not purchase (a) Obligation issued by an obligor not (e) Limit on investment company securities convertible into stock at the possessing general powers of taxation. holdings—(1) General. In calculating the option of the issuer. Pursuant to § 1.2(b), an obligation issued amount of its investment in investment by an obligor not possessing general § 1.7 Securities held in satisfaction of company shares under this part, a bank powers of taxation qualifies as a general debts previously contracted; holding obligation of a State or political shall use reasonable efforts to calculate period; disposal; accounting treatment; and combine its pro rata share of a non-speculative purpose. subdivision for the purposes of 12 particular security in the portfolio of U.S.C. 24 (Seventh), if a party (a) Securities held in satisfaction of possessing general powers of taxation each investment company with the debts previously contracted. The bank’s direct holdings of that security. unconditionally promises to make restrictions and limitations of this part, sufficient funds available for all The bank’s direct holdings of the other than those set forth in paragraphs particular security and the bank’s pro required payments in connection with (b),(c), and (d) of this section, do not the obligation. rata interest in the same security in the apply to securities acquired: investment company’s portfolio may (1) Through foreclosure on collateral; (b) Indirect commitment of full faith not, in the aggregate, exceed the (2) In good faith by way of and credit. The indirect commitment of investment limitation that would apply compromise of a doubtful claim; or the full faith and credit of a State or to that security. (3) To avoid loss in connection with political subdivision (that possesses (2) Alternate limit for diversified a debt previously contracted. general powers of taxation) in support of investment companies. A national bank (b) Holding period. A national bank an obligation may be demonstrated by may elect not to combine its pro rata holding securities pursuant to paragraph any of the following methods, alone or interest in a particular security in an (a) of this section may do so for a period in combination, when the State or investment company with the bank’s not to exceed five years from the date political subdivision pledges its full direct holdings of that security if: that ownership of the securities was faith and credit in support of the (i) The investment company’s originally transferred to the bank. The obligation. holdings of the securities of any one OCC may extend the holding period for (1) Lease/rental agreement. The lease issuer do not exceed 5 percent of its up to an additional five years if a bank agreement must be valid and binding on total portfolio; and provides a clearly convincing the State or the political subdivision, (ii) The bank’s total holdings of the demonstration as to why an additional and the State or political subdivision investment company’s shares do not holding period is needed. must unconditionally promise to pay exceed the most stringent investment (c) Accounting treatment. A bank rentals that, together with any other limitation that would apply to any of shall account for securities held available funds, are sufficient for the the securities in the company’s portfolio pursuant to paragraph (a) of this section timely payment of interest on, and if those securities were purchased in accordance with Generally Accepted principal of, the obligation. These lease/ directly by the bank. Accounting Principles. rental agreement may, for instance, § 1.5 Safe and sound banking practices; (d) Non-speculative purpose. A bank provide support for obligations credit information required. may not hold securities pursuant to financing the acquisition or operation of paragraph (a) of this section for (a) A national bank shall adhere to public projects in the areas of education, speculative purposes. safe and sound banking practices and medical care, transportation, recreation, the specific requirements of this part in § 1.8 Nonconforming investments. public buildings, and facilities. conducting the activities described in (a) A national bank’s investment in (2) Service/purchase agreement. The § 1.3. The bank shall consider, as securities that no longer conform to this agreement must be valid and binding on appropriate, the interest rate, credit, part but conformed when made will not the State or the political subdivision, liquidity, price, foreign exchange, be deemed in violation but instead will and the State or political subdivision transaction, compliance, strategic, and be treated as nonconforming if the must unconditionally promise in the reputation risks presented by a reason why the investment no longer agreement to make payments for proposed activity, and the particular conforms to this part is because: services or resources provided through activities undertaken by the bank must (1) The bank’s capital declines; or by the issuer of the obligation. These be appropriate for that bank. (2) Issuers, obligors, or credit- payments, together with any other (b) In conducting these activities, the enhancers merge; available funds, must be sufficient for bank shall determine that there is (3) Issuers become related directly or the timely payment of interest on, and adequate evidence that an obligor indirectly through common control; principal of, the obligation. An possesses resources sufficient to provide (4) The investment securities rules agreement to purchase municipal sewer, for all required payments on its change; water, waste disposal, or electric obligations, or, in the case of securities (5) The security no longer qualifies as services may, for instance, provide deemed to be investment securities on an investment security; or support for obligations financing the the basis of reliable estimates of an (6) Other events identified by the OCC construction or acquisition of facilities obligor’s performance, that the bank occur. supplying those services. 63986 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

(3) Refillable debt service reserve obligation expressly or implicitly outstanding indirect general obligation fund. The reserve fund must at least dependent upon voter or legislative bonds, the same indirect commitment, equal the amount necessary to meet the authorization of appropriations may be such as a lease agreement or a reserve annual payment of interest on, and considered supported by the full faith fund, that supported the prior issue, principal of, the obligation as required and credit of a State or political may support the refunding obligation. by applicable law. The maintenance of subdivision if the bank determines, on a refillable reserve fund may be the basis of past actions by the voters or § 1.130 Type II securities; guidelines for provided, for instance, by statutory obligations issued for university and legislative body in similar situations housing purposes. direction for an appropriation, or by involving similar types of projects, that statutory automatic apportionment and it is reasonably probable that the obligor (a) Investment quality. An obligation payment from the State funds of will obtain all necessary appropriations. issued for housing, university, or amounts necessary to restore the fund to (b) An obligation supported dormitory purposes is a Type II security the required level. exclusively by excise taxes or license only if it: (4) Other grants or support. A fees is not a general obligation for the (1) Qualifies as an investment statutory provision or agreement must purposes of 12 U.S.C. 24 (Seventh). security, as defined in § 1.2(e); and unconditionally commit the State or the Nevertheless, an obligation that is (2) Is issued for the appropriate political subdivision to provide funds primarily payable from a fund purpose and by a qualifying issuer. which, together with other available consisting of excise taxes or other (b) Obligation issued for university funds, are sufficient for the timely pledged revenues qualifies as a ‘‘general purposes. (1) An obligation issued by a payment of interest on, and principal of, obligation,’’ if, in the event of a State or political subdivision or agency the obligation. Those funds may, for deficiency of those revenues, the of a State or political subdivision for the instance, be supplied in the form of obligation is also supported by the purpose of financing the construction or annual grants or may be advanced general revenues of a State or a political improvement of facilities at or used by whenever the other available revenues subdivision possessing general powers a university or a degree-granting college- are not sufficient for the payment of of taxation. level institution, or financing loans for principal and interest. studies at such institutions, qualifies as § 1.120 Prerefunded or escrowed bonds a Type II security. Facilities financed in § 1.110 Taxing powers of a State or and obligations secured by Type I this manner may include student political subdivision. securities. buildings, classrooms, university utility (a) An obligation is considered (a) An obligation qualifies as a Type buildings, cafeterias, stadiums, and supported by the full faith and credit of I security if it is secured by an escrow university parking lots. a State or political subdivision fund consisting of obligations of the (2) An obligation that finances the possessing general powers of taxation United States or general obligations of a construction or improvement of when the promise or other commitment State or a political subdivision, and the facilities used by a hospital may be of the State or the political subdivision escrowed obligations produce interest eligible as a Type II security, if the will produce funds, which (together earnings sufficient for the full and hospital is a department or a division of with any other funds available for the timely payment of interest on, and a university, or otherwise provides a purpose) will be sufficient to provide for principal of, the obligation. nexus with university purposes, such as all required payments on the obligation. (b) If the interest earnings from the an affiliation agreement between the In order to evaluate whether a escrowed Type I securities alone are not university and the hospital, faculty commitment of a State or political sufficient to guarantee the full positions of the hospital staff, and subdivision is likely to generate repayment of an obligation, a promise of training of medical students, interns, sufficient funds, a bank shall consider a State or a political subdivision residents, and nurses (e.g., a ‘‘teaching the impact of any possible limitations possessing general powers of taxation to hospital’’). regarding the State’s or political maintain a reserve fund for the timely subdivision’s taxing powers, as well as payment of interest on, and principal of, (c) Obligation issued for housing the availability of funds in view of the the obligation may further support a purposes. An obligation issued for projected revenues and expenditures. guarantee of the full repayment of an housing purposes may qualify as a Type Quantitative restrictions on the general obligation. II security if the security otherwise powers of taxation of the State or (c) An obligation issued to refund an meets the criteria for a Type II security. political subdivision do not necessarily indirect general obligation may be PART 7ÐINTERPRETIVE RULINGS mean that an obligation is not supported supported in a number of ways that, in by the full faith and credit of the State combination, are sufficient at all times 2. The authority citation for part 7 or political subdivision. In such case, to support the obligation with the full continues to read as follows: the bank shall determine the eligibility faith and credit of the United States or Authority: 12 U.S.C. 1 et seq. and 93a. of obligations by reviewing, on a case- a State or a political subdivision by-case basis, whether tax revenues possessing general powers of taxation. § 7.1021 [Removed] available under the limited taxing During the period following its 3. Section 7.1021 is removed. powers are sufficient for the full and issuance, the proceeds of the refunding timely payment of interest on, and obligation may be invested in U.S. Dated: November 22, 1996. principal of, the obligation. The bank obligations or municipal general Eugene A. Ludwig, shall use current and reasonable obligations that will produce sufficient Comptroller of the Currency. financial projections in calculating the interest income for payment of principal [FR Doc. 96–30779 Filed 11–29–96; 8:45 am] availability of the revenues. An and interest. Upon the retirement of the BILLING CODE 4810±33±P federal register December 2,1996 Monday Rule Reportable Events;AnnualReport;Final 29 CFRParts4001,4043and4065 Corporation Guaranty Pension Benefit Part VII 63987 63988 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

PENSION BENEFIT GUARANTY The commenter sought clarification of of, among other things, ‘‘a persisting CORPORATION the types of ‘‘transactions’’ that will failure by the debtor to attain agreed- result in one or more persons ceasing to upon performance levels.’’ The 29 CFR Parts 4001, 4043 and 4065 be members of the plan’s controlled commenter suggested that the PBGC group and therefore trigger reporting clarify this language and, in particular, RIN 1212±AA80 under § 4043.29. The final rule clarifies clarify ‘‘performance levels’’ and delete that a binding agreement to transfer the word ‘‘persisting.’’ ownership of a controlled group Reportable Events; Annual Report In response to this comment and to member, such as an agreement to conform with the recommendation of AGENCY: Pension Benefit Guaranty transfer a subsidiary to a new controlled the negotiated rulemaking committee, Corporation. group in a stock sale or to spin off a the PBGC has added the word ACTION: Final rule. subsidiary to shareholders, triggers reporting. ‘‘financial’’ before the term SUMMARY: The Pension Benefit Guaranty In response to an inquiry, the final ‘‘performance levels.’’ The PBGC agrees Corporation is amending its reportable rule provides that, when there is a with the committee’s recommendation events regulation. The Retirement change in plan administrator or that a failure to meet agreed-upon Protection Act of 1994 made significant contributing sponsor, the person who is financial performance levels that does changes to the reportable events obligated to report is the plan not persist should not be reportable and requirements, including adding four administrator or contributing sponsor therefore has not deleted the word new events. This rule addresses the on the 30th day after the reportable ‘‘persisting.’’ statutory changes and provides event occurs (for post-event reporting) The PBGC also has made minor extensions of time and waivers for or the notice date (for advance clarifying and editorial changes. certain filings. The PBGC developed the reporting). Since filings may be made by proposed rule through negotiated designated representatives, the parties Compliance With Rulemaking and rulemaking. The final rule makes only may negotiate which party actually Paperwork Guidelines minor modifications and clarifications. prepares and submits the reportable The PBGC submitted the proposed event filing. The regulation merely EFFECTIVE DATE: January 1, 1997. This rule as a ‘‘significant regulatory action’’ identifies which party will be liable for regulation is applicable for reportable under Executive Order 12866 because penalties if no report is filed. events under subpart B that occur on or the rule was the product of the PBGC’s after January 1, 1997, and for reportable Under the final rule, the PBGC will permit filing by electronic mail or first use of the negotiated rulemaking events under subpart C and Form 200 process. There are no material changes filings under Subpart D for which notice facsimile transmission. The proposed regulation provided a special rule for in the final rule. This action is not is due on or after January 1, 1997. The economically significant. PBGC will treat any waivers or electronic filings that was limited to extensions under the rule as if they had advance reporting. The final regulation The PBGC certifies under section been in effect as of the effective date of extends the benefit of this rule to all 605(b) of the Regulatory Flexibility Act the Retirement Protection Act filings under the regulation. Under the that this rule will not have a significant amendments to section 4043 of the rule, a filing will be timely if certain economic impact on a substantial Employee Retirement Income Security minimal information is submitted number of small entities. For most Act of 1974. electronically by the due date and the reportable events, waivers based on plan remaining information is received by FOR FURTHER INFORMATION CONTACT: size or funding level will exempt the PBGC within one day after the due reporting for small plans. Even where Harold J. Ashner, Assistant General date for advance notice and Form 200 Counsel, or James L. Beller, Attorney, reporting is required, there is no filings and two days after the due date significant economic impact because the Office of the General Counsel, PBGC, for post-event notice. 1200 K Street, NW., Washington, DC filing burden averages only 8.2 hours. The commenter sought clarification Accordingly, sections 603 and 604 of 20005–4026, 202–326–4024 (202–326– on proof of filing by electronic mail or 4179 for TTY and TDD). the Regulatory Flexibility Act do not facsimile transmission. Facsimiles and apply. SUPPLEMENTARY INFORMATION: On July some other electronic filings generally 24, 1996, the Pension Benefit Guaranty provide proof of receipt. The PBGC will The collection of information Corporation published in the Federal provide automatic receipts for electronic requirements in this rule and the related Register (61 FR 38409) a proposed rule mail submissions. If these automatic forms and instructions have been amending its regulation on reportable receipts prove inadequate in the future, approved by the Office of Management events (29 CFR part 4043). the PBGC will work with filers to and Budget. The collection of The proposed rule provided guidance establish alternative receipts. information requirements relating to with respect to amendments made by The final regulation provides that, for reportable events (Subparts A through C the Retirement Protection Act of 1994, post-event information sent to the PBGC of part 4043, Form 10, and Form 10– added new reportable events, and by commercial delivery service, the date ADVANCE) were approved under provided extensions of time and waivers of filing is the date of deposit with the control number 1212–0013. The for certain filings. It was the result of a delivery service, provided the collection of information requirements negotiated rulemaking process involving information is received by the PBGC relating to notice of failure to make a committee consisting of within two regular business days. required contributions (Subpart D of representatives of employers, The proposed rule added a part 4043 and Form 200) were approved participants, pension practitioners, and requirement to report certain defaults on under control number 1212–0041. An the PBGC. The PBGC received only one a loan with an outstanding balance agency may not conduct or sponsor, and written comment on the proposed rule. exceeding $10 million. The rule requires a person is not required to respond to, The final rule follows the proposed rule reporting of a default with respect to a collection of information unless it except for a few minor modifications such a loan if the debtor receives displays a currently valid OMB control and clarifications. written notice of the default on account number. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63989

List of Subjects 4043.22 Amendment decreasing benefits De minimis 10-percent segment payable. means, in connection with a plan’s 29 CFR Part 4001 4043.23 Active participant reduction. controlled group, one or more entities Pension insurance, Pensions, 4043.24 Termination or partial termination. that in the aggregate have for a fiscal Reporting and Recordkeeping 4043.25 Failure to make required minimum year— requirements. funding payment. 4043.26 Inability to pay benefits when due. (1) Revenue not exceeding 10 percent 29 CFR Part 4043 4043.27 Distribution to a substantial owner. of the controlled group’s revenue; 4043.28 Plan merger, consolidation, or (2) Annual operating income not Pension insurance, Pensions, transfer. exceeding the greatest of— Reporting and Recordkeeping 4043.29 Change in contributing sponsor or (i) 10 percent of the controlled group’s requirements. controlled group. annual operating income; (ii) 5 percent of the controlled group’s 29 CFR Part 4065 4043.30 Liquidation. 4043.31 Extraordinary dividend or stock first $200 million in net tangible assets Pension insurance, Pensions, redemption. at the end of the fiscal year(s); or Reporting and Recordkeeping 4043.32 Transfer of benefit liabilities. (iii) $5 million; and requirements. 4043.33 Application for minimum funding (3) Net tangible assets at the end of For the reasons set forth above, the waiver. the fiscal year(s) not exceeding the PBGC proposes to amend parts 4001, 4043.34 Loan default. greater of— 4043, and 4065 of 29 CFR chapter LX as 4043.35 Bankruptcy or similar settlement. (i) 10 percent of the controlled group’s follows. Subpart CÐAdvance Notice of Reportable net tangible assets at the end of the Events fiscal year(s); or PART 4001Ð[AMENDED] 4043.61 Advance reporting filing (ii) $5 million. De minimis 5-percent segment has the 1. The authority citation for Part 4001 obligation. same meaning as a de minimis 10- continues to read as follows: 4043.62 Change in contributing sponsor or controlled group. percent segment, except that ‘‘5 Authority: 29 U.S.C. 1301, 1302(b)(3). 4043.63 Liquidation. percent’’ is substituted for ‘‘10 percent’’ 2. Section 4001.2 is amended by 4043.64 Extraordinary dividend or stock each time it appears. adding the following definitions: redemption. Event year means the plan year in 4043.65 Transfer of benefit liabilities. which the reportable event occurs. § 4001.2 Definitions. 4043.66 Application for minimum funding Fair market value of the plan’s assets * * * * * waiver. means the fair market value of the plan’s EIN means the nine-digit employer 4043.67 Loan default. assets as of the testing date for the 4043.68 Bankruptcy or similar settlement. identification number assigned by the applicable plan year, including Internal Revenue Service to a person. Subpart DÐNotice of Failure To Make contributions attributable to the * * * * * Required Contributions previous plan year for funding purposes PN means the three-digit plan number 4043.81 PBGC Form 200, notice of failure to under section 302(c)(10) of ERISA or assigned to a plan. make required contributions; section 412(c)(10) of the Code if made supplementary information. * * * * * by the earlier of the due date or filing 3. Section 4001.2 is further amended Authority: 29 U.S.C. 1082(f), 1302(b)(3), date of the variable rate premium for the by adding the following to the end of 1343. applicable plan year, but not to the extent contributions are used to satisfy the definition of controlled group: Subpart AÐGeneral Provisions * * * * * the quarterly contribution requirements Controlled group ** * Any reference § 4043.1 Purpose and scope. under section 302(e) of ERISA or section 412(m) of the Code for the applicable to a plan’s controlled group means all This part prescribes the requirements contributing sponsors of the plan and all plan year. for notifying the PBGC of a reportable Foreign entity means a member of a members of each contributing sponsor’s event under section 4043 of ERISA or of controlled group. controlled group that— a failure to make certain required (1) Is not a contributing sponsor of a * * * * * contributions under section 302(f)(4) of plan; 4. Part 4043 is revised to read as ERISA or section 412(n)(4) of the Code. (2) Is not organized under the laws of follows: Subpart A contains definitions and (or, if an individual, is not a domiciliary general rules. Subpart B contains rules of) any state (as defined in section 3(10) PART 4043ÐREPORTABLE EVENTS for post-event notice of a reportable AND CERTAIN OTHER NOTIFICATION of ERISA); and event. Subpart C contains rules for (3) For the fiscal year that includes REQUIREMENTS advance notice of a reportable event. the date the reportable event occurs, Subpart AÐGeneral Provisions Subpart D contains rules for notifying meets one of the following tests— the PBGC of a failure to make certain Sec. (i) Is not required to file any United 4043.1 Purpose and scope. required contributions. States federal income tax form; (ii) Has no income reportable on any 4043.2 Definitions. § 4043.2 Definitions. 4043.3 Requirement of notice. United States federal income tax form 4043.4 Waivers and extensions. The following terms are defined in other than passive income not 4043.5 How and where to file. § 4001.2 of this chapter: Code, exceeding $1,000; or 4043.6 Date of filing. contributing sponsor, controlled group, (iii) Does not own substantial assets in 4043.7 Computation of time. ERISA, fair market value, irrevocable the United States (disregarding stock of 4043.8 Confidentiality. commitment, multiemployer plan, a member of the plan’s controlled Subpart BÐPost-Event Notice of notice of intent to terminate, PBGC, group) and is not required to file any Reportable Events person, plan, plan administrator, quarterly United States tax returns for 4043.20 Post-event filing obligation. proposed termination date, single- employee withholding. 4043.21 Tax disqualification and Title I employer plan, and substantial owner. Foreign-linked entity means a person noncompliance. In addition, for purposes of this part: that— 63990 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

(1) Is neither a foreign entity nor a the information required by this part by (e) Effect of failure to file. If a notice contributing sponsor of a plan; and the time specified in § 4043.20 (for post- (or any other information required (2) Is a member of the plan’s event notice), § 4043.61 (for advance under this part) is not provided within controlled group only because of notice), or § 4043.81 (for Form 200 the specified time limit, the PBGC may ownership interests in or by foreign filings). Any information previously assess against each person required to entities. filed with the PBGC may be provide the notice a separate penalty Foreign parent means a foreign entity incorporated by reference. under section 4071 of ERISA of up to that is a direct or indirect parent of a (2) Multiple plans. If a reportable $1,000 a day for each day that the person that is a contributing sponsor. event occurs for more than one plan, the failure continues. The PBGC may Form 5500 due date means the filing obligation with respect to each pursue any other equitable or legal deadline (including extensions) for plan is independent of the filing remedies available to it under the law. filing the annual report under section obligation with respect to any other 103 of ERISA. plan. § 4043.4 Waivers and extensions. Notice date means the deadline (3) Optional consolidated filing. A (a) Specific events. For specific (including extensions) for filing notice filing by any person will be deemed to reportable events, waivers from of the reportable event with the PBGC. be a filing by all persons required to reporting and information requirements Participant means a participant as notify the PBGC under this part. If and extensions of time are provided in defined in § 4006.2. notices are required for two or more subparts B and C of this part. If an Public company means a person events, the notices may be combined in occurrence constitutes two or more subject to the reporting requirements of one filing. reportable events, reporting section 13 or 15(d) of the Securities (b) Contents of reportable event requirements for each event are Exchange Act of 1934 or a subsidiary (as notice. A person required to file a determined independently. For defined for purposes of the Securities reportable event notice shall provide, by example, any event reportable under Exchange Act of 1934) of a person the notice date, the following general more than one section will be exempt subject to such reporting requirements. information, along with any other from reporting only if it satisfies the Testing date means, with respect to a information required for each reportable requirements for a waiver under each plan year— event under subpart B or C of this part: section. (1) The last day of the prior plan year, (1) The name of the plan; (b) Multiemployer plans. The except as provided in paragraphs (2) or (2) The name, address, and telephone requirements of section 4043 of ERISA (3) of this definition; number of the contributing sponsor(s) are waived with respect to (2) In the case of a new or newly- and of an individual that should be multiemployer plans. covered plan (as defined in § 4006.2 of contacted; (c) Terminating plans. No notice is this chapter), the first day of the plan (3) The name, address, and telephone required from the plan administrator or year or, if later, the date on which the number of the plan administrator and of contributing sponsor of a plan if the plan becomes effective for benefit an individual that should be contacted; notice date is on or after the date on (4) The EIN of the contributing accruals for future service; or which— (3) In the case of a plan described in sponsor and the EIN/PN of the plan; (1) All of the plan’s assets (other than § 4006.5(e)(2) of this chapter (relating to (5) A brief statement of the pertinent any excess assets) are distributed certain mergers or spinoffs), the first day facts relating to the reportable event; pursuant to a termination; or of the plan year. (6) A copy of the plan document in Ultimate parent means the parent at effect, i.e., the last restatement of the (2) A trustee is appointed for the plan the highest level in the chain of plan and all amendments thereto; under section 4042(c) of ERISA. corporations and/or other organizations (7) A copy of the most recent actuarial (d) Other waivers and extensions. The constituting the parent-subsidiary statement and opinion (if any) relating PBGC may extend any deadline or controlled group. to the plan; and waive any other requirement under this Unfunded vested benefits means (8) A statement of any material change part where it finds convincing evidence unfunded vested benefits determined in in the assets or liabilities of the plan that the waiver or extension is accordance with § 4006.4 of this occurring after the date of the most appropriate under the circumstances. chapter, without regard to the recent actuarial statement and opinion. Any waiver or extension may be subject exemptions and special rules in (c) Optional reportable event forms. to conditions. A request for a waiver or § 4006.5(a)-(c) of this chapter. For The PBGC shall issue optional extension must be filed in writing with purposes of subpart B only, unfunded reportable events forms, which may the PBGC and must state the facts and vested benefits may be determined by provide for reduced initial information circumstances on which the request is subtracting the fair market value of the submissions. based. (d) Requests for additional plan’s assets from the plan’s vested § 4043.5 How and where to file. benefits amount. information. The PBGC may, in any Variable rate premium means the case, require the submission of Requests and information shall be portion of the premium determined additional information. Any such filed in accordance with the instructions under section 4006(a)(3)(E) of ERISA information shall be submitted for to the applicable PBGC reporting form. subpart B of this part within 30 days, and § 4006.3(b) of this chapter. § 4043.6 Date of filing. Vested benefits amount means the and for subpart C or D of this part vested benefits amount determined within 7 days, after the date of a written (a) Post-event notice. Information filed under § 4006.4(b)(1) of this chapter. request by the PBGC, or within a under subpart B of this part is different time period specified therein. considered filed— § 4043.3 Requirement of notice. The PBGC may in its discretion shorten (1) On the date of the United States (a) Obligation to file—(1) In general. the time period where it determines that postmark stamped on the cover in Each person that is required to file a the interests of the PBGC or participants which the information is mailed, if— notice under this part, or a duly may be prejudiced by a delay in receipt (i) The postmark was made by the authorized representative, shall submit of the information. United States Postal Service; and Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63991

(ii) The document was mailed postage knows or has reason to know that the were determined in accordance with the prepaid, properly addressed to the reportable event has occurred, unless a assumptions and methodology in PBGC; waiver or extension applies. If there is § 4010.4(b)(2) of this chapter. (2) On the date it is deposited for a change in plan administrator or (3) No facility closing event/80- delivery to the PBGC with a commercial contributing sponsor, the reporting percent funded. Notice is waived if— delivery service, provided it is received obligation applies to the person who is (i) The active participant reduction by the PBGC within two regular the plan administrator or contributing would not be reportable if only those business days; or sponsor of the plan on the 30th day after active participant reductions resulting (3) Except as provided in paragraphs the reportable event occurs. from cessation of operations at one or (a)(1) and (a)(2), on the date it is more facilities were taken into account; received by the PBGC. § 4043.21 Tax disqualification and Title I and noncompliance. (b) Advance notice and Form 200 (ii) As of the testing date for the event filings. Information filed under subpart (a) Reportable event. A reportable year, the fair market value of the plan’s C or D of this part is considered filed on event occurs when the Secretary of the assets is at least 80 percent of the plan’s the date it is received by PBGC. Treasury issues notice that a plan has vested benefits amount. (c) Electronic filing. A reportable ceased to be a plan described in section (d) Extensions. The notice date is event notice or Form 200 will be 4021(a)(2) of ERISA, or when the extended to the latest of— deemed timely filed if— Secretary of Labor determines that a (1) Form 1 extension. 30 days after the (1) An electronic transmission plan is not in compliance with title I of plan’s variable rate premium filing due containing at least the minimum initial ERISA. date for the event year if a waiver under information (as specified in the (b) Waivers. Notice is waived for this any of paragraphs (c)(2)(i) through instruction to the applicable form) is event. (c)(2)(iii) or (c)(3) of this section would apply if ‘‘the plan year preceding the filed on or before the notice date; and § 4043.22 Amendment decreasing benefits (2) The remaining initial information payable. event year’’ were substituted for ‘‘the is received by the PBGC on or before— event year’’; (a) Reportable event. A reportable (2) Form 5500 extension. 30 days after (i) The first regular business day event occurs when an amendment to a following the notice date, in the case of the plan’s Form 5500 due date that next plan is adopted under which the follows the date the reportable event advance notice or a Form 200; or retirement benefit payable from (ii) The second regular business day occurs, provided the event would not be employer contributions with respect to reportable counting only those following the notice date, in the case of any participant may be decreased. post-event notice. participant reductions resulting from (b) Waivers. Notice is waived for this cessation of operations at a single (d) Receipt date. Information received event. on a weekend or Federal holiday or after facility; and 5:00 p.m. on a weekday is considered § 4043.23 Active participant reduction. (3) Form 1–ES extension. The due filed on the next regular business day. date for the Form 1–ES for the plan year (a) Reportable event. A reportable following the event year if— § 4043.7 Computation of time. event occurs when the number of active (i) The plan is required to file a Form participants under a plan is reduced to 1–ES for the plan year following the In computing any period of time, the less than 80 percent of the number of day of the event from which the period event year; active participants at the beginning of (ii) The event would not be reportable of time begins to run shall not be the plan year, or to less than 75 percent included. The last day so computed counting only those participant of the number of active participants at reductions resulting from cessation of shall be included, unless it is a weekend the beginning of the previous plan year. or Federal holiday, in which case the operations at a single facility; and (b) Initial information required. In (iii) The participant reduction period runs until the end of the next addition to the information in regular business day. represents no more than 20 percent of § 4043.3(b), the notice shall include— the total active participants (at the § 4043.8 Confidentiality. (1) A statement explaining the cause beginning of the plan year(s) in which In accordance with section 4043(f) of of the reduction (e.g., facility shutdown the reduction occurs) in all plans ERISA and § 4901.21(a)(3) of this or sale); and maintained by any member of the plan’s chapter, any information or (2) The number of active participants controlled group. documentary material that is not at the date the reportable event occurs, (e) Determination of the number of publicly available and is submitted to at the beginning of the plan year, and at active participants—(1) Determination the PBGC pursuant to this part shall not the beginning of the prior plan year. date. The number of active participants be made public, except as may be (c) Waivers—(1) Small plan. Notice is at the beginning of a plan year may be relevant to any administrative or waived if the plan has fewer than 100 determined by using the number of judicial action or proceeding or for participants at the beginning of either active participants at the end of the disclosures to either body of Congress or the current or the previous plan year. previous plan year. to any duly authorized committee or (2) Plan funding. Notice is waived if— (2) Active participant. ‘‘Active subcommittee of the Congress. (i) No variable rate premium. No participant’’ means a participant who— variable rate premium is required to be (i) Is receiving compensation for work Subpart BÐPost-Event Notice of paid for the plan for the event year; performed; Reportable Events (ii) $1 million unfunded vested (ii) Is on paid or unpaid leave granted benefits. As of the testing date for the for a reason other than a layoff; § 4043.20 Post-Event filing obligation. event year, the plan has less than $1 (iii) Is laid off from work for a period The plan administrator and each million in unfunded vested benefits; or of time that has lasted less than 30 days; contributing sponsor of a plan for which (iii) No unfunded vested benefits. As or a reportable event under this subpart of the testing date for the event year, the (iv) Is absent from work due to a has occurred are required to notify the plan would have no unfunded vested recurring reduction in employment that PBGC within 30 days after that person benefits if unfunded vested benefits occurs at least annually. 63992 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

§ 4043.24 Termination or partial benefits; the inability to locate the (c) Waivers.—(1) Distribution up to termination. person; or any other administrative section 415 limit. Notice is waived if the (a) Reportable event. A reportable delay if the delay is for less than the total of all distributions made to the event occurs when the Secretary of the shorter of two months or two full benefit substantial owner within the one-year Treasury determines that there has been payment periods. period ending with the date of the a termination or partial termination of a (2) Projected inability. A plan is distribution does not exceed the plan within the meaning of section projected to be unable to pay benefits limitation (as of the date the reportable 411(d)(3) of the Code. when, as of the last day of any quarter event occurs) under section 415(b)(1)(A) (b) Waivers. Notice is waived for this of a plan year, the plan’s ‘‘liquid assets’’ of the Code (as adjusted in accordance event. are less than two times the amount of with section 415(d)) when expressed as the ‘‘disbursements from the plan’’ for an annual benefit in the form of a § 4043.25 Failure to make required such quarter. Liquid assets and straight life annuity to a participant minimum funding payment. disbursements from the plan have the beginning at Social Security retirement (a) Reportable event. A reportable same meaning as under section age ($120,000 for calendar year 1996). event occurs when a required 302(e)(5)(E) of ERISA and section (2) Plan funding. Notice is waived if— installment or a payment required under 412(m)(5)(E) of the Code. (i) No variable rate premium. No section 302 of ERISA or section 412 of (b) Initial information required. In variable rate premium is required to be the Code (including a payment required addition to the information in paid for the plan for the event year; as a condition of a funding waiver) is § 4043.3(b), the notice shall include— (ii) No unfunded vested benefits. As not made by the due date for the (1) The date of any current inability of the testing date for the event year, the payment. In the case of a payment and the amount of benefit payments not plan would have no unfunded vested needed to avoid a deficiency in the made; benefits if unfunded vested benefits plan’s funding standard account, the (2) The next date on which the plan were determined in accordance with the due date is the latest date such payment is expected to be unable to pay benefits, assumptions and methodology in may be made under section the amount of the projected shortfall, § 4010.4(b)(2) of this chapter; or 302(c)(10)(A) of ERISA or section and the number of plan participants and (iii) 80-percent funded. As of the 412(c)(10)(A) of the Code. beneficiaries expected to be affected by testing date for the event year, the fair (b) Initial information required. In the inability to pay benefits; market value of the plan’s assets is at addition to the information in (3) For a projected inability described least 80 percent of the plan’s vested § 4043.3(b), the notice shall include— in paragraph (a)(2), the amount of the benefits amount. (1) The due date and amount of the plan’s liquid assets at the end of the (3) Distribution up to one percent of required minimum funding payment quarter, and the amount of its assets. Notice is waived if the sum of that was not made and of the next disbursements for the quarter; and the values of all distributions that are payment due; (4) The name, address, and phone made to the substantial owner within (2) The name of each member of the number of the trustee of the plan (and the one-year period ending with the plan’s controlled group and its of any custodian). date of the distribution is one percent or ownership relationship to other (c) Waivers. Notice is waived unless less of the end-of-year current value of members of that controlled group; and the reportable event occurs during a the plan’s assets (as required to be (3) For each other plan maintained by plan year for which the plan is reported on the plan’s Form 5500) for any member of the plan’s controlled described in section 302(d)(6)(A) of either of the two plan years immediately group, identification of the plan and its ERISA or section 412(l)(6)(A) of the preceding the event year. contributing sponsor(s) by name and Code. (d) Form 1 extension. The notice date EIN/PN or EIN, as appropriate. is extended until 30 days after the plan’s (c) Waiver. Notice is waived if the § 4043.27 Distribution to a substantial variable rate premium filing due date for required minimum funding payment is owner. the event year, provided that a waiver made by the 30th day after its due date. (a) Reportable event. A reportable under any of paragraphs (c)(2)(i) (d) Form 200 filed. If, with respect to event occurs for a plan when— through (c)(2)(iii) of this section would the same failure, a Form 200 has been (1) There is a distribution to a apply if ‘‘the plan year preceding the completed and submitted in accordance substantial owner of a contributing event year’’ were substituted for ‘‘the with § 4043.81, the Form 200 filing shall sponsor of the plan; event year.’’ satisfy the requirements of this section. (2) The total of all distributions made (e) Determination rules—(1) Valuation to the substantial owner within the one- of distribution. The value of a § 4043.26 Inability to pay benefits when year period ending with the date of such distribution under this section is the due. distribution exceeds $10,000; sum of— (a) Reportable event. A reportable (3) The distribution is not made by (i) The cash amounts actually event occurs when a plan is currently reason of the substantial owner’s death; received by the substantial owner; unable or projected to be unable to pay and (ii) The purchase price of any benefits. (4) Immediately after the distribution, irrevocable commitment; and (1) Current inability. A plan is the plan has nonforfeitable benefits (as (iii) The fair market value of any other currently unable to pay benefits if it provided in § 4022.5) that are not assets distributed, determined as of the fails to provide any participant or funded. date of distribution to the substantial beneficiary the full benefits to which the (b) Initial information required. In owner. person is entitled under the terms of the addition to the information in (2) Date of substantial owner plan, at the time the benefit is due and § 4043.3(b), the notice shall include— distribution. The date of distribution to in the form in which it is due. A plan (1) The name, address and telephone a substantial owner of a cash shall not be treated as being currently number of the substantial owner distribution is the date it is received by unable to pay benefits if its failure to receiving the distribution(s); and the substantial owner. The date of pay is caused solely by the need to (2) The amount, form, and date of distribution to a substantial owner of an verify the person’s eligibility for each distribution. irrevocable commitment is the date on Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63993 which the obligation to provide benefits contributing sponsor) and any persons (ii) The date (if any) when a press passes from the plan to the insurer. The that will cease to be in the plan’s release with respect to the transaction is date of any other distribution to a controlled group. issued. substantial owner is the date when the (c) Waivers.—(1) De minimis 10- (e) Examples. The following examples plan relinquishes control over the assets percent segment. Notice is waived if the assume that no waivers apply. transferred directly or indirectly to the person or persons that will cease to be (1) Controlled group breakup. Plan substantial owner. members of the plan’s controlled group A’s controlled group consists of (3) Determination date. The represent a de minimis 10-percent Company A (its contributing sponsor), determination of whether a participant segment of the plan’s old controlled Company B (which maintains Plan B), is (or has been in the preceding 60 group for the most recent fiscal year(s) and Company C. As a result of a months) a substantial owner is made on ending on or before the date the transaction, the controlled group will the date when there has been a reportable event occurs. break into two separate controlled distribution that would be reportable (2) Foreign entity. Notice is waived if groups—one segment consisting of under this section if made to a each person that will cease to be a Company A and the other segment substantial owner. member of the plan’s controlled group consisting of Companies B and C. Both is a foreign entity other than a foreign § 4043.28 Plan merger, consolidation, or Company A (Plan A’s contributing transfer. parent. sponsor) and the plan administrator of (3) Plan funding. Notice is waived if— plan A are required to report that (a) Reportable event. A reportable (i) No variable rate premium. No Companies B and C will leave plan A’s event occurs when a plan merges, variable rate premium is required to be controlled group. Company B (Plan B’s consolidates, or transfers its assets or paid for the plan for the event year; contributing sponsor) and the plan liabilities under section 208 of ERISA or (ii) $1 million unfunded vested administrator of Plan B are required to section 414(1) of the Code. benefits. As of the testing date for the report that Company A will leave Plan (b) Waivers. Notice is waived for this event year, the plan has less than $1 B’s controlled group. Company C is not event. However, notice may be required million in unfunded vested benefits; or required to report because it is not a under § 4043.29 (for a controlled group (iii) No unfunded vested benefits. As contributing sponsor or a plan change) or § 4043.32 (for a transfer of of the testing date for the event year, the administrator. benefit liabilities). plan would have no unfunded vested (2) Change in contributing sponsor. § 4043.29 Change in contributing sponsor benefits if unfunded vested benefits Plan Q is maintained by Company Q. or controlled group. were determined in accordance with the Company Q enters into a binding (a) Reportable event. A reportable assumptions and methodology in contract to sell a portion of its assets event occurs for a plan when there is a § 4010.4(b)(2) of this chapter. and to transfer employees participating transaction that results, or will result, in (4) Public company/80-percent in Plan Q, along with Plan Q, to one or more persons ceasing to be funded. Notice is waived if— Company R, which is not a member of members of the plan’s controlled group. (i) The plan’s contributing sponsor Company Q’s controlled group. There For purposes of this section, the term before the effective date of the will be no change in the structure of ‘‘transaction’’ includes, but is not transaction is a public company; and Company Q’s controlled group. On the limited to, a legally binding agreement, (ii) As of the testing date for the event effective date of the sale, Company R whether or not written, to transfer year, the fair market value of the plan’s will become the contributing sponsor of ownership, an actual transfer of assets is at least 80 percent of the plan’s Plan Q. A reportable event occurs on the ownership, and an actual change in vested benefits amount. date of the transaction (i.e., the binding ownership that occurs as a matter of law (d) Extensions. The notice date is contract), because as a result of the or through the exercise or lapse of pre- extended to the latest of— transaction, Company Q (and any other existing rights. A transaction is not (1) Form 1 extension. 30 days after the member of its controlled group) will reportable if it will result solely in a plan’s variable rate premium filing due cease to be a member of Plan Q’s reorganization involving a mere change date for the event year if a waiver under controlled group. If, on the 30th day in identity, form, or place of any of paragraphs (c)(3)(i) through after Company Q and Company R enter organization, however effected. (c)(3)(iii) or (c)(4) of this section would into the binding contract, the change in (b) Initial information required. In apply if ‘‘the plan year preceding the the contributing sponsor has not yet addition to the information in event year’’ were substituted for ‘‘the become effective, Company Q has the § 4043.3(b), the notice shall include— event year’; reporting obligation. If the change in the (1) The name of each member of the (2) Foreign parent and foreign-linked contributing sponsor has become plan’s old and new controlled groups entities. With respect to a transaction in effective by the 30th day, Company R and the member’s ownership which only foreign parents or foreign- has the reporting obligation. relationship to other members of those linked entities will cease to be members (3) Merger/consolidation within a groups; of the plan’s controlled group, 30 days controlled group. Company X and (2) For each other plan maintained by after the plan’s first Form 5500 due date Company Y are subsidiaries of Company any member of the plan’s old or new after the person required to notify the Z, which maintains Plan Z. Company Y controlled group, identification of the PBGC has actual knowledge of the merges into Company X (only Company plan and its contributing sponsor(s) by transaction and of the controlled group X survives). Company Z and the plan name and EIN/PN or EIN, as relationship; and administrator of Plan Z must report that appropriate; and (3) Press releases; Forms 10Q. If the Company Y has ceased to be a member (3) A copy of the most recent audited plan’s contributing sponsor before the of Plan Z’s controlled group. (or if not available, unaudited) financial effective date of the transaction is a statements, and the most recent interim public company, 30 days after the § 4043.30 Liquidation. financial statements, of the plan’s earlier of— (a) Reportable event. A reportable contributing sponsor (both old and new, (i) The first Form 10Q filing deadline event occurs for a plan when a member in the case of a change in the that occurs after the transaction; or of the plan’s controlled group— 63994 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

(1) Is involved in any transaction to (d) Extensions. The notice date is year, a distribution is reportable when implement its complete liquidation extended to the latest of— the sum of the cash distribution (including liquidation into another (1) Form 1 extension. 30 days after the percentage (as defined in paragraph controlled group member); plan’s variable rate premium filing due (e)(2) of this section) and the non-cash (2) Institutes or has instituted against date for the event year if a waiver under distribution percentages (as defined in it a proceeding to be dissolved or is any of paragraphs (c)(3)(i) through paragraph (e)(5) of this section) for the dissolved, whichever occurs first; or (c)(3)(iii) or (c)(4) of this section would fiscal year exceeds 100 percent. (3) Liquidates in a case under the apply if ‘‘the plan year preceding the (b) Information required. In addition Bankruptcy Code, or under any similar event year’’ were substituted for ‘‘the to the information in § 4043.5(b), the law. event year’; notice shall include— (b) Initial information required. In (2) Foreign parent and foreign-linked (1) Identification of the person making addition to the information in entity. 30 days after the plan’s first Form the distribution (by name and EIN); and § 4043.3(b), the notice shall include— 5500 due date after the person required (2) The date and amount of any cash (1) The name of each member of the to notify the PBGC has actual distribution during the fiscal year; plan’s controlled group before and after knowledge of the transaction and of the (3) A description of any non-cash the liquidation and its ownership controlled group relationship, if the distribution during the fiscal year, the relationship to other members of that person liquidating is a foreign parent or fair market value of each asset controlled group; and foreign-linked entity; and distributed, and the date or dates of (2) For each other plan maintained by (3) Press releases; Forms 100. If the distribution; and any member of the plan’s controlled plan’s contributing sponsor is a public (4) A statement as to whether the group, identification of the plan and its company, 30 days after the earlier of— recipient was a member of the plan’s contributing sponsor(s) by name and (i) The first Form 10Q filing deadline controlled group. EIN/PN or EIN, as appropriate. that occurs after the transaction; or (c) Waivers—(1) Extraordinary (c) Waivers—(1) De minimis 10- (ii) The date (if any) when a press dividends and stock redemptions. The percent segment. Notice is waived if— release with respect to the transaction is reportable event described in section (i) The person or persons that issued. 4043(c)(11) of ERISA related to liquidate represent a de minimis 10- extraordinary dividends and stock percent segment of the plan’s controlled § 4043.31 Extraordinary dividend or stock redemptions is waived except to the group for the most recent fiscal year(s) redemption. extent reporting is required under this ending on or before the date the (a) Reportable event. A reportable section. reportable event occurs; and event occurs for a plan when any (2) De minimis 5-percent segment. (ii) Each plan that was maintained by member of the plan’s controlled group Notice is waived if the person making the liquidating member is maintained declares a dividend (as defined in the distribution is a de minimis 5- by another member of the plan’s paragraph (e)(3) of this section) or percent segment of the plan’s controlled controlled group after the liquidation. redeems its own stock, if the resulting group for the most recent fiscal year(s) (2) Foreign entity. Notice is waived if distribution is reportable under this ending on or before the date the each person that liquidates is a foreign paragraph. reportable event occurs. (3) Foreign entity. Notice is waived if entity other than a foreign parent. (1) Cash distributions. A cash (3) Plan funding. Notice is waived if distribution is reportable if— the person making the distribution is a foreign entity other than a foreign each plan that was maintained by the (i) The distribution, when combined parent. liquidating member is maintained by with any other cash distributions to (4) Foreign parent. Notice is waived if another member of the plan’s controlled shareholders previously made during the fiscal year, exceeds the adjusted net the person making the distribution is a group after the liquidation and— foreign parent, and the distribution is (i) No variable rate premium. No income (as defined in paragraph (e)(1) of made solely to other members of the variable rate premium is required to be this section) of the person making the distribution for the preceding fiscal plan’s controlled group. paid for the plan for the event year; (5) Plan funding. Notice is waived if— (ii) $1 million unfunded vested year; and (i) No variable rate premium. No (ii) The distribution, when combined benefits. As of the testing date for the variable rate premium is required to be with any other cash distributions to event year, the plan has less than $1 paid for the plan for the event year; million in unfunded vested benefits; or shareholders previously made during (ii) $1 million unfunded vested (iii) No unfunded vested benefits. As the fiscal year or during the three prior benefits. As of the testing date for the of the testing date for the event year, the fiscal years, exceeds the adjusted net event year, the plan has less than $1 plan would have no unfunded vested income (as defined in paragraph (e)(1) of million in unfunded vested benefits; benefits if unfunded vested benefits this section) of the person making the (iii) No unfunded vested benefits. As were determined in accordance with the distribution for the four preceding fiscal of the testing date for the event year, the assumptions and methodology in years. plan would have no unfunded vested § 4010.4(b)(2) of this chapter. (2) Non-cash distributions. A non- benefits if unfunded vested benefits (4) Public company/80-percent cash distribution is reportable if its net were determined in accordance with the funded. Notice is waived if— value (as defined in paragraph (e)(4) of assumptions and methodology in (i) The plan’s contributing sponsor is this section), when combined with the § 4010.4(b)(2) of this chapter; or a public company; net value of any other non-cash (iv) 80-percent funded. As of the (ii) As of the testing date for the event distributions to shareholders previously testing date for the event year, the fair year, the fair market value of the plan’s made during the fiscal year, exceeds 10 market value of the plan’s assets is at assets is at least 80 percent of the plan’s percent of the total net assets (as defined least 80 percent of the plan’s vested vested benefits amount; and in paragraph (e)(6) of this section) of the benefits amount. (iii) Each plan that was maintained by person making the distribution. (d) Extensions. The notice date is the liquidating member is maintained (3) Combined distributions. If both extended to the latest of— by another member of the plan’s cash and non-cash distributions to (1) Form 1 extension. 30 days after the controlled group after the liquidation. shareholders are made during a fiscal plan’s variable rate premium filing due Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63995 date for the event year if a waiver under the fair market value of an asset 1(b)(11) will be considered the date of any of paragraphs (c)(5)(i) through transferred in connection with a transfer. (c)(5)(iv) of this section would apply if distribution or a liability assumed by a (b) Initial information required. In ‘‘the plan year preceding the event year’’ recipient of a distribution shall be addition to the information required in were substituted for ‘‘the event year’; deemed to be equal to 200 percent of the § 4043.3(b), the notice shall include— (2) Foreign parent and foreign-linked book value of the asset or liability on the (1) Identification of the transferee(s) entity. 30 days after the plan’s first Form books of the person making the and each contributing sponsor of each 5500 due date after the person required distribution. Stock redeemed is deemed transferee plan by name and EIN/PN or to notify the PBGC has actual to have no value. EIN, as appropriate; knowledge of the distribution and the (5) Non-cash distribution percentage (2) An explanation of the actuarial controlled group relationship, if the means the percentage that the net value assumptions used in determining the person making the distribution is a of the non-cash distribution bears to value of benefit liabilities (and, if foreign parent or foreign-linked entity; one-tenth of the value of the total net appropriate, the value of plan assets) for and assets (as defined in paragraph (e)(6) of each transfer; and (3) An estimate of the amounts of (3) Press releases; Forms 10Q. If the this section) of the person making the assets and liabilities being transferred, plan’s contributing sponsor is a public distribution. and the number of participants whose company, 30 days after the earlier of— (6) Total net assets means, with (i) The first Form 10Q filing deadline benefits are transferred. respect to the person declaring a non- (c) Waivers—(1) Complete plan that occurs after the distribution; or cash distribution— (ii) The date (if any) when a press transfer. Notice is waived if the transfer (i) If all classes of the person’s release with respect to the distribution is a transfer of all of the transferor plan’s securities are publicly traded, the total is issued. benefit liabilities and assets to one other market value (immediately before the (e) Definitions—(1) Adjusted net plan. distribution is made) of the publicly- income means the net income before (2) Transfer of less than 3 percent of traded securities of the person making after-tax gain or loss on any sale of assets. Notice is waived if the value of the distribution; assets, as determined in accordance the assets being transferred— with generally accepted accounting (ii) If no classes of the person’s (i) Equals the present value of the principles and practices. securities are publicly traded, the excess accrued benefits (whether or not vested) (2) Cash distribution percentage (immediately before the distribution is being transferred, using actuarial means, for a fiscal year, the lesser of— made) of the book value of the person’s assumptions that comply with section (i) The percentage that all cash assets over the book value of the 414(l) of the Code; and distributions to one or more person’s liabilities, adjusted to reflect (ii) In conjunction with other assets shareholders made during that fiscal the net value of the non-cash transferred during the same plan year, is year bears to the adjusted net income (as distribution; or less than 3 percent of the assets of the defined in paragraph (e)(1) of this (iii) If some but not all classes of the transferor plan as of at least one day in section) of the person making the person’s securities are publicly traded, that year. distributions for the preceding fiscal the greater of the amounts in paragraphs (3) Section 414(l) safe harbor. Notice year, or (e)(6)(i) or (ii) of this section. is waived if the transfer complies with (ii) The percentage that all cash section 414(l) of the Code using the § 4043.32 Transfer of benefit liabilities. distributions to one or more actuarial assumptions prescribed for shareholders made during that fiscal (a) Reportable event—(1) In general. A valuing benefits in trusteed plans under year and the three preceding fiscal years reportable event occurs for a plan § 4044.51–57 of this chapter. (4) Fully funded plans. Notice is bears to the adjusted net income (as when— waived if the transfer complies with defined in paragraph (e)(1) of this (i) The plan or any other plan section 414(l) of the Code using section) of the person making the maintained by a person in the plan’s reasonable actuarial assumptions and, distributions for the four preceding controlled group makes a transfer of after the transfer, the transferor and fiscal years. benefit liabilities to a person, or to a (3) Dividend means a distribution to plan or plans maintained by a person or transferee plans are fully funded (using the actuarial assumptions prescribed for one or more shareholders. A payment by persons, that are not members of the valuing benefits in trusteed plans under a person to a member of its controlled transferor plan’s controlled group; and § 4044.51–57) of this chapter. group is treated as a distribution to its (ii) The amount of benefit liabilities transferred, in conjunction with other (d) Who must file. Only the plan shareholder(s). administrator and contributing sponsor (4) Net value of non-cash distribution benefit liabilities transferred during the of the plan that made the transfer means the fair market value of assets 12-month period ending on the date of described in paragraph (a)(1) of this transferred by the person making the the transfer, is 3 percent or more of the section are required to file a notice of a distribution, reduced by the fair market plan’s total benefit liabilities. Both the reportable event under this section. value of any liabilities assumed or benefit liabilities transferred and the Notice by any other contributing consideration given by the recipient in plan’s total benefit liabilities shall be sponsor or plan administrator is waived. connection with the distribution. A valued as of any one date in the plan distribution of stock that one controlled year in which the transfer occurs, using § 4043.33 Application for minimum group member holds in another actuarial assumptions that comply with funding waiver. controlled group member is disregarded. section 414(l) of the Code. (a) Reportable event. A reportable Net value determinations should be (2) Date of transfer. The date of event for a plan occurs when an based on readily available fair market transfer shall be determined on the basis application for a minimum funding value(s) or independent appraisal(s) of the facts and circumstances of the waiver for the plan is submitted under performed within one year before the particular situation. For transfers subject section 303 of ERISA or section 412(d) distribution is made. To the extent that to the requirements of section 414(l) of of the Code. fair market values are not readily the Code, the date determined in (b) Initial information required. In available and no such appraisals exist, accordance with 26 CFR 1.414(l)- addition to the information in 63996 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

§ 4043.3(b), the notice shall include a (1) In general. Except as provided in (4) Executes a general assignment for copy of the waiver application, paragraph (d)(2) or (d)(3) of this section, the benefit of creditors; or including all attachments. the notice date is 30 days after the (5) Undertakes to effect any other person required to report knows or has nonjudicial composition, extension, or § 4043.34 Loan default. reason to know of the occurrence of the settlement with substantially all its (a) Reportable event. A reportable default, without regard to the time of creditors. event occurs for a plan whenever there any other conditions required for the (b) Initial information required. In is a default by a member of the plan’s default to be reportable. addition to the information in controlled group with respect to a loan (2) Cure period extensions. The notice § 4043.3(b), the notice shall include— with an outstanding balance of $10 date is extended to one day after— (1) A copy of all papers filed in the million or more, if— (i) The applicable cure period relevant proceeding, including, but not (1) The default results from the provided in the loan agreement (in the limited to, petitions and supporting debtor’s failure to make a required loan case of a reportable event described in schedules; payment when due (unless the payment paragraph (a)(1) of this section); (2) The last date for filing claims; is made within 30 days after the due (ii) The date the loan is accelerated (in (3) The name, address, and phone date); the case of a reportable event described number of any trustee or receiver (or (2) The lender accelerates the loan; or in paragraph (a)(2) of this section); or similar person); (3) The debtor receives a written (iii) The date the debtor receives (4) The name of each member of the notice of default from the lender (and written notice of the default (in the case plan’s controlled group and its does not establish the notice was issued of a reportable event described in ownership relationship to other in error) on account of: paragraph (a)(3) of this section). members of that controlled group; and (5) For each other plan maintained by (i) A drop in the debtor’s cash (3) Form 1 extension. The notice date any member of the plan’s controlled reserves below an agreed-upon level; is extended to 30 days after the plan’s group, identification of the plan and its (ii) An unusual or catastrophic event variable rate premium filing due date for contributing sponsor(s) by name and experienced by the debtor; or the event year, if a waiver under any of (iii) A persisting failure by the debtor EIN/PN or EIN, as appropriate. paragraphs (c)(3)(i) through (c)(3)(iv) of (c) Waivers. Notice is waived if the to attain agreed-upon financial this section would apply if the ‘‘the plan performance levels. person described in paragraph (a) of this year preceding the event year’’ were section is a foreign entity other than a (b) Initial information required. In substituted for ‘‘the event year.’’ addition to the information in foreign parent. (4) Foreign parent and foreign-linked (d) Extensions. Unless the controlled § 4043.3(b), the notice shall include— entities. With respect to a loan default group member described in paragraph (1) A copy of the relevant loan involving only a foreign parent or a (a) of this section is the contributing documents (e.g., promissory note, foreign-linked entity, the notice date is sponsor of the plan, the notice date is security agreement); extended to 30 days after the plan’s first extended until 30 days after the person (2) The due date and amount of any Form 5500 due date after the person missed payment; required to notify the PBGC has actual required to notify the PBGC has actual knowledge of the reportable event. (3) A copy of any notice of default knowledge of the default and of the from the lender; and controlled group relationship. Subpart CÐAdvance Notice of (4) A copy of any notice of (5) Example. Company A has a debt Reportable Events acceleration from the lender. with an outstanding balance of $20 (c) Waivers—(1) Default cured. Notice million, for which a payment is due on § 4043.61 Advance reporting filing is waived if the default is cured, or October 1. Under the terms of the loan, obligation. waived by the lender, within 30 days or, the default may be cured within 10 (a) In general. Unless a waiver or if later, by the end of any cure period days. Company A does not make the extension applies with respect to the provided by the loan agreement. payment until October 31. Because plan, each contributing sponsor of a (2) Foreign entity. Notice is waived if Company A has made the payment plan for which a reportable event under the debtor is a foreign entity other than within 30 days of the due date, no this subpart is going to occur is required a foreign parent. reportable event has occurred. If to notify the PBGC no later than 30 days (3) Plan funding. Notice is waived if— Company A does not make the payment before the effective date of the (i) No variable rate premium. No by October 31, a reportable event will reportable event if the contributing variable rate premium is required to be have occurred on October 1, and notice sponsor is subject to advance reporting. paid for the plan for the event year; will be due by October 31. If there is a change in contributing (ii) $1 million unfunded vested sponsor, the reporting obligation applies benefits. As of the testing date for the § 4043.35 Bankruptcy or similar to the person who is the contributing event year, the plan has less than $1 settlement. sponsor of the plan on the notice date. million in unfunded vested benefits; (a) Reportable event. A reportable (b) Persons subject to advance (iii) No unfunded vested benefits. As event occurs for a plan when any reporting. A contributing sponsor is of the testing date for the event year, the member of the plan’s controlled group— subject to the advance reporting plan would have no unfunded vested (1) Commences a bankruptcy case requirement under paragraph (a) of this benefits if unfunded vested benefits (under the Bankruptcy Code), or has a section if— were determined in accordance with the bankruptcy case commenced against it; (1) Neither the contributing sponsor assumptions and methodology in (2) Commences or has commenced nor the member of the plan’s controlled § 4010.4(b)(2) of this chapter; or against it any other type of insolvency group to which the event relates is a (iv) 80-percent funded. As of the proceeding (including, but not limited public company; and testing date for the event year, the fair to, the appointment of a receiver); (2) The contributing sponsor is a market value of the plan’s assets is at (3) Commences, or has commenced member of a controlled group least 80 percent of the plan’s vested against it, a proceeding to effect a maintaining one or more plans that, in benefits amount. composition, extension, or settlement the aggregate (disregarding plans with (d) Notice date and extensions. with creditors; no unfunded vested benefits) have— Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 63997

(i) Vested benefits amounts that the reportable event, and each plan that (2) One day after subsequent event. exceed the actuarial values of plan was maintained by the liquidating One day after— assets by more than $50 million; and member is maintained by another (i) The applicable cure period (ii) A funded vested benefit member of the plan’s controlled group. provided in the loan agreement (in the percentage of less than 90 percent. case of a default described in (c) Funding determinations. For § 4043.64 Extraordinary dividend or stock § 4043.34(a)(1)); purposes of paragraph (b)(2) of this redemption. (ii) The date the loan is accelerated (in section— (a) Reportable event and information the case of a default described in (1) Actuarial value of assets. The required. Advance notice is required for § 4043.34(a)(2)); and actuarial value of plan assets is a distribution by a member of a plan’s (iii) The date the debtor receives determined in accordance with controlled group that would be written notice of the default (in the case § 4006.4(b)(2) of this chapter; described in § 4043.31(a) if both assets of a default described in (2) Funded vested benefit percentage. and liabilities were valued at fair market § 4043.34(a)(3)). value. The notice shall include the The aggregate funded vested percentage § 4043.68 Bankruptcy or similar of one or more plans is the percentage information described in § 4043.31(b). settlement. (b) Waiver. Notice is waived if the that the total actuarial values of plan (a) Reportable event and information person making the distribution is a de assets bears to the plans’ total vested required. Advance notice is required for minimis 5-percent segment of the plan’s benefits amounts; and a bankruptcy or similar settlement, as controlled group for the most recent (3) Testing date. Each plan’s assets described in § 4043.35(a), and the notice fiscal year(s) ending on or before the and vested benefits amount are shall include the information described effective date of the reportable event. determined as of that plan’s testing date in § 4043.35(b). for the plan year that includes the § 4043.65 Transfer of benefit liabilities. (b) Extension. The notice date is effective date of the reportable event. (a) Reportable event and information extended until 10 days after the (d) Shortening of 30-day period. reportable event has occurred. Pursuant to § 4043.3(d), the PBGC may, required. Advance notice is required for upon review of an advance notice, a transfer of benefit liabilities, as Subpart DÐNotice of Failure To Make shorten the notice period to allow for an described in § 4043.32(a) (determined Required Contributions earlier effective date. without regard to § 4043.32(d)), and the notice shall include the information § 4043.81 PBGC Form 200, notice of failure § 4043.62 Change in contributing sponsor described in § 4043.32(b). to make required contributions; or controlled group. (b) Waivers. Notice is waived— supplementary information. (a) Reportable event and information (1) In the circumstances described in (a) General rules. To comply with the required. Advance notice is required for § 4043.32 (c)(1), (c)(2), and (c)(4); and notification requirement in section a change in a plan’s contributing (2) If the benefit liabilities of 500 or 302(f)(4) of ERISA and section 412(n)(4) sponsor or controlled group, as fewer participants are transferred, in the of the Code, a contributing sponsor of a described in § 4043.29(a), and the notice circumstances described in single-employer plan that is covered shall include the information described § 4043.32(c)(3). under section 4021 of ERISA and, if that in § 4043.29(b) and, if known, the contributing sponsor is a member of a expected effective date of the reportable § 4043.66 Application for minimum parent-subsidiary controlled group, the event. funding waiver. ultimate parent must complete and (b) Waivers. (a) Reportable event and information submit in accordance with this section (1) Small plan. Notice is waived with required. Advance notice is required for a properly certified Form 200 that respect to a change of contributing an application for a minimum funding includes all required documentation sponsor if the transferred plan has 500 waiver, as described in § 4043.33(a), and and other information, as described in or fewer participants. the notice shall include the information the related filing instructions. Notice is (2) De minimis 5-percent segment. described in § 4043.33(b). required whenever the unpaid balance Notice is waived if the person or (b) Extension. The notice date is of a required installment or any other persons that will cease to be members extended until 10 days after the payment required under section 302 of of the plan’s controlled group represent reportable event has occurred. ERISA and section 412 of the Code a de minimis 5-percent segment of the (including interest), when added to the § 4043.67 Loan default. plan’s old controlled group for the most aggregate unpaid balance of all recent fiscal year(s) ending on or before (a) Reportable event and information preceding such installments or other the effective date of the reportable required. Advance notice is required for payments for which payment was not event. a loan default, as described in made when due (including interest), § 4043.34(a) (or that would be so exceeds $1 million. § 4043.63 Liquidation. described if ‘‘10 days’’ were substituted (1) Form 200 must be filed with the (a) Reportable event and information for ‘‘30 days’’ in § 4043.34(a)(1)). The PBGC no later than 10 days after the due required. Advance notice is required for notice shall include the information date for any required payment for which a liquidation of a member of a plan’s described in § 4043.34(b). payment was not made when due. controlled group, as described in (b) Waivers. Notice is waived if the (2) If a contributing sponsor or the § 4043.30(a), and the notice shall reportable default is cured, or the lender ultimate parent completes and submits include the information described in waives the default, within 10 days or, if Form 200 in accordance with this § 4043.30(b) and, if known, the expected later, by the end of any cure period. section, the PBGC will consider the effective date of the reportable event. (c) Extensions. The notice date is notification requirement in section (b) Waiver. Notice is waived if the extended to the later of— 302(f)(4) of ERISA and section 412(n)(4) person that liquidates is a de minimis 5- (1) 10 days after default. 10 days after of the Code to be satisfied by all percent segment of the plan’s controlled the default occurs (without regard to the members of a controlled group of which group for the most recent fiscal year(s) time of any other conditions required the person who has filed Form 200 is a ending on or before the effective date of for the default to be reportable); and member. 63998 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

(b) Supplementary information. If, PART 4065ÐANNUAL REPORT Issued in Washington, DC, this 27th day of upon review of a Form 200, the PBGC November 1996. 5. The authority citation for part 4065 concludes that it needs additional Robert B. Reich, is revised to read as follows: information in order to make decisions Chairman, Board of Directors, Pension Benefit regarding enforcement of a lien imposed Authority: 29 U.S.C. 1302(b)(3), 1365. Guaranty Corporation. by section 302(f) of ERISA and section 6. Section 4065.3 is amended by Issued on the date set forth above pursuant 412(n) of the Code, the PBGC may redesignating the existing text as to a resolution of the Board of Directors require any member of the contributing paragraph (b); and adding a new authorizing its Chairman to issue this final sponsor’s controlled group to paragraph (a) to read as follows: rule. supplement the Form 200 in accordance § 4065.3 Filing requirement. James J. Keightley, with § 4043.3(d). (a) The requirement to report the Secretary, Board of Directors, Pension Benefit occurrence of a reportable event under Guaranty Corporation. section 4043 of ERISA in the Annual [FR Doc. 96–30779 Filed 11–29–96; 8:45 am] Report is waived. BILLING CODE 7708±01±P federal register December 2,1996 Monday District ofColumbiaBanks;InterimRule Assessment Fees;NationalBanks, 12 CFRPart8 Office oftheComptrollerCurrency Treasury Department ofthe Part VIII 63999 64000 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

DEPARTMENT OF THE TREASURY activities that further this mission by that the current regulation does not imposing assessments, fees, and other reflect. Under this program, the OCC Office of the Comptroller of the charges on national banks, as necessary focuses on the risk profile of the Currency and appropriate to meet the OCC’s consolidated company in recognition of expenses, pursuant to 12 U.S.C. 482. the fact that exposure to risk at the 12 CFR Part 8 The OCC charges each national bank national bank level may be either [Docket No. 96±27] a semiannual assessment according to a mitigated or increased by activities formula that is described in part 8 of the company-wide.3 RIN 1557±AB41 agency’s regulations (12 CFR part 8). In To implement the Supervision by general, a national bank’s semiannual Risk program effectively, the OCC must Assessment of Fees; National Banks; assessment is computed as follows. obtain the information necessary to District of Columbia Banks First, the bank identifies its asset-size evaluate risks to a national bank that AGENCY: Office of the Comptroller of the category by consulting the chart setting may be presented by other entities in Currency, Treasury. out ten such categories that is contained the banking organization. Many banks ACTION: Interim rule with request for in part 8. Once the bank determines its already use information systems that comment. asset-size category, the bank then integrate data from affiliated companies. calculates its assessment by adding two This type of system facilitates retrieval SUMMARY: The Office of the Comptroller numbers. The first number is called the of the data by OCC examiners, which, in of the Currency (OCC) is amending its ‘‘base amount,’’ 1 and is provided by the turn, reduces the costs incurred by the regulation governing assessments by OCC to all banks in the annual ‘‘Notice OCC in obtaining the information that is providing that national banks that are of Comptroller of the Currency Fees’’ essential to the supervisory process. In not the largest national bank in a bank (Notice of Fees) and in each semiannual the OCC’s experience, the largest holding company (referred to as non- assessment notice (Assessment Notice). national bank in a bank holding lead banks) will pay assessments that Each bank derives the second number company often has systems that are are less than these banks otherwise by multiplying the ‘‘marginal rate’’ for sufficiently comprehensive, detailed, would pay. This amendment reflects the the bank’s asset-size category, which and reliable to facilitate company-wide cost savings that are realized by the also is provided by the OCC in the risk evaluation. OCC’s Supervision by Risk Program, Notice of Fees and Assessment Notices, The declining marginal rate structure whereby the OCC focuses on the risk by the amount of the bank’s assets that in the current assessment regulation profile of a consolidated company. The exceeds the next lowest asset-size reflects the economies of scale realized intended effect of this rulemaking is to category threshold. The bank then adds in the OCC’s examination and enable the OCC to lower assessments on the product of this multiplication to the supervision of large banks, but the rule non-lead banks. base amount to arrive at its total does not reflect the additional DATES: This interim rule is effective on assessment. economies that result when the OCC can December 2, 1996. Comments must be The variables in this formula allow facilitate its supervision of smaller received by January 31, 1997. the OCC some flexibility in adjusting banks in a bank holding company by ADDRESSES: Comments should be assessments to reflect its costs. For relying on information that is available directed to, and may be inspected and example, the applicable marginal rate from the largest national bank in that copied at: Communications Division, declines as asset size grows, resulting in holding company. As a consequence, OCC, 250 E Street, SW., Washington, the lowest marginal rates applying to under the current regulation, a non-lead D.C. 20219, Attention: Docket No. 96– assets in the largest asset-size categories. bank (defined as any national bank in a 27. In addition, comments may be sent This regressive rate structure reflects the bank holding company other than the via FAX, at (202) 874–5274 or via OCC’s experience that the economies of largest national bank) would pay an Internet at [email protected] scale realized in the examination and assessment that does not necessarily reflect these efficiencies.4 This FOR FURTHER INFORMATION CONTACT: Roy supervision of large institutions allow a proportionately smaller expenditure of rulemaking changes the current Madsen, Assistant Chief Financial regulation, consistent with the OCC’s Officer, Financial Review, Policy and OCC resources than is required in the case of smaller banks.2 supervision-by-risk approach, to enable Analysis, (202) 874–5130; Patricia S. the OCC to reduce the assessments to be Grady, Senior Attorney, Administrative The regulation being amended by this rulemaking does not, however, reflect paid by non-lead national banks in a and Internal Law Division, (202) 874– bank holding company. 4460; or Mark Tenhundfeld, Assistant the significant additional economies now being realized as a result of the Although the Supervision by Risk Director, Legislative and Regulatory Program requires the OCC to focus on Activities Division, (202) 874–5090, OCC’s new risk-based approach to bank supervision. The OCC’s Supervision by the risk profile of the consolidated Office of the Comptroller of the company, the OCC also must continue Currency, Washington, D.C. 20219. Risk Program creates the potential for cost savings in the OCC’s supervision of to examine and supervise each national SUPPLEMENTARY INFORMATION: banks in holding company structures bank within a banking organization. Reviewing related banks in a banking Background 1 The base amount for a given bank is calculated The OCC charters, regulates, and by the OCC by multiplying the lower endpoint of 3 For further discussion of the OCC’s Supervision supervises approximately 2,800 national a bank’s asset-size category by a ‘‘marginal rate’’ by Risk Program, see various components of the banks and 66 federal branches and determined by the OCC. For a more complete Comptroller’s Handbook, including especially the description of the way in which the OCC computes components entitled ‘‘Bank Supervision Process’’ agencies of foreign banks in the U.S., the base amount, see 12 CFR 8.2(a)(1). (April 1996) and ‘‘Large Bank Supervision’’ accounting for more than half the 2 See, e.g., 53 FR. 31705 (August 19, 1988) (‘‘Fixed (December 1995). nation’s banking assets. Its mission is to costs of supervision, such as basic preparatory 4 This situation is not present in the case of a ensure a safe, sound, and competitive tasks, do not vary proportionately from small to national bank that is not in a holding company large banks. Further, statistical techniques used in structure, because there is no similar opportunity national banking system that supports the examination process permit larger institutions for the OCC to conduct a significant amount of its the citizens, communities, and economy to be examined with proportionately fewer supervision of the bank by obtaining information of the United States. The OCC funds the resources.’’). from an affiliated bank. Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations 64001 organization as if they comprised one each national bank owned by that bank The determination of how assessments consolidated entity would ignore the holding company as reported in the are imposed is internal to the OCC, fact that not all aspects of the OCC’s Consolidated Reports of Condition and since the Comptroller is required to supervision can be accomplished by Income that the national banks in recover expenses but is not required to viewing a banking organization on a question file for the quarter immediately follow specific calculations or formulae whole-company basis. Important preceding the payment of a semiannual when making this determination. As a components of the OCC’s supervision assessment. The rule defines bank result, the OCC may revise its are charter-specific and require holding company and control as having assessment structure as necessary to examination at the individual bank the same meanings as these terms have meet its expenses. In addition, the rule level. For example, if one national bank in section 2 of the Bank Holding is exempt pursuant to 5 U.S.C. 553(b)(B) in a banking organization engages in Company Act of 1956 (BHCA) (12 U.S.C. from the prior notice requirements certain specialized or sophisticated 1841(a)(1) and (a)(2), respectively). because delaying adoption of the rule activities (such as capital markets Generally speaking, a company is a bank pending receipt of comments would be activities) but the others do not, holding company under the BHCA if it unnecessary and contrary to the public reviewing consolidated information on a controls a bank. A company will be interest. The rule confers a benefit on whole-company basis may not permit deemed to control a bank if the national banks by enabling the OCC to the OCC to evaluate the condition of the company owns, controls, or has power lower the total amount of assessments bank engaged in the specialized or to vote at least 25 percent of any class paid by affiliated national banks. It will sophisticated activity. Careful review at of the bank’s voting securities, controls not have the effect of raising the the bank level is necessary to ensure the election of a majority of the bank’s assessment of any national bank. that each national bank conducts its directors, or is found to exercise a The agency also has determined that operations safely and soundly and in a controlling influence over the the rule may be immediately effective manner that comports with applicable management or policies of the bank. pursuant to 5 U.S.C. 553(d)(1) and law. Each non-lead national bank will (d)(3). By enabling the OCC to reduce The OCC also must examine each continue to compute the components of assessments, the rulemaking will have national bank to ensure each bank’s its assessment under the interim rule in the effect of granting a partial exemption compliance with the fair lending and the same way as it currently does, as from the assessment obligations that consumer protection laws that the OCC summarized at the outset of this otherwise would apply to non-lead administers. The Community preamble discussion. However, once a banks. Accordingly, the rule may be Reinvestment Act (CRA), for instance, non-lead bank determines these immediately effective under 5 U.S.C. requires the OCC to assess each national components, it then will reduce the sum 553(d)(1). There also is good cause to bank’s record of meeting the credit of the components by the percentage dispense with a delayed effective date needs of the bank’s entire community. specified in the Notice of Fees in order under 5 U.S.C. 553(d)(3), namely, that 12 U.S.C. 2903. Consistent with this to determine its assessment. the interim rule needs to be effective in statutory mandate, the OCC conducts a The interim rule also deletes the time to ensure that reductions will be CRA examination of every national provisions in current part 8 prohibiting reflected in the Notice of Comptroller of bank. Similarly, the OCC examines the proration of assessments. The the Currency Fees that will be mailed in every national bank in order to current rule states that each bank and early December to all national banks. determine compliance with laws such Federal branch or agency that is subject The OCC will continue to provide as the Equal Credit Opportunity Act (15 to the OCC’s jurisdiction must pay the each national bank a semiannual U.S.C. 1691 et seq.) and the Truth-in- full amount of its assessment for the Assessment Notice, and national banks Lending Act (15 U.S.C. 1601 et seq.). next six-month period, ‘‘without will continue to have at least 30 days Effective supervision in these areas proration for any reason.’’ 12 C.F.R. following receipt of a semiannual requires the OCC to conduct bank-by- § 8.2(a)(5) and (b). This prohibition is assessment notice in which to pay the bank reviews of loan files and practices. inconsistent with the reduction in non- assessment. Although the OCC is not In order to better reflect the costs lead banks’’ assessments because the required to provide notice and public incurred by the OCC in carrying out its reduction is effectively a proration of comment under the Administrative diverse supervisory responsibilities, this these banks’ assessments. The interim Procedure Act, 5 U.S.C. 553(b)(A) and interim rule retains the requirement that rule removes the prohibition against (b)(B), the OCC invites comment on any each national bank pay an assessment prorations in order to avoid creating an aspect of this interim rule. but adds a provision to part 8 that states inconsistency within the regulation. Regulatory Flexibility Act that the OCC will charge a non-lead The OCC solicits comment on these national bank an assessment that will be amendments made to reflect differences The Regulatory Flexibility Act, 5 less than the bank otherwise would pay in the costs of the OCC’s supervision U.S.C. 601–612, does not apply to this if it were either the lead bank in a based on the organizational structure in interim rule. The Regulatory Flexibility holding company or independent. which a national bank operates. The Act applies whenever an agency is OCC also welcomes comment on any required by 5 U.S.C. 553 or any other Description of the Interim Rule other aspect of this interim rule. law to publish general notice of Pursuant to new § 8.2(a)(6), the OCC proposed rulemaking for any proposed will charge a non-lead national bank an Use of Immediately Effective Interim rule. 5 U.S.C. 603(a). As is explained assessment that will be lower than the Rule more fully in the preceding section assessment the bank otherwise would The OCC has determined that notice captioned ‘‘Use of Immediately Effective pay. The specific percentage of the and comment is not required before Interim Rule,’’ publication of this rule assessment reduction will be provided adopting the rule. The interim rule for comment is unnecessary and in the semiannnual Assessment Notice. involves agency practice and procedure contrary to the public interest. New § 8.2(a)(6)(ii)(B) defines lead bank and thus is exempt under 5 U.S.C. Accordingly, section 553 does not as the largest national bank controlled 553(b)(A) from the prior notice require the OCC to publish general by a bank holding company, based on a requirements of the Administrative notice of a proposed rulemaking (see 5 comparison of the total assets held by Procedures Act (5 U.S.C. 500 et seq.). U.S.C. 553(b)(A) and (b)(B)). 64002 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Rules and Regulations

Further, there is no other law that governments, or by the private sector, of § 8.2 Semiannual assessment. requires the OCC to publish a proposed $100 million or more in any one year. (a) * * * rule concerning assessments. Section Accordingly, the OCC has not prepared (6)(i) Notwithstanding any other 5240 of the Revised Statutes (12 U.S.C. a budgetary impact statement or provision of this part, the OCC shall 481 and 482) authorizes the OCC to specifically addressed any regulatory charge each non-lead bank a semiannual impose and collect assessments as alternatives. As discussed in the assessment that is less than the amount necessary or appropriate (12 U.S.C. preamble, the interim rule will enable of the semiannual assessment that the 482), but does not require the OCC to the OCC to reduce the amount of the bank otherwise would be required to implement that grant of authority by assessments paid by non-lead banks in pay under the Notice of Comptroller of means of a regulation. Since the OCC is a banking organization. the Currency Fees described in § 8.8. not required to publish a general notice List of Subjects in 12 CFR Part 8 The OCC will specify the percentage of of proposed rulemaking for this rule, the the reduction of assessments for non- Assessments, Fees, National banks. Regulatory Flexibility Act does not lead banks in the Notice of Comptroller apply. Authority and Issuance of the Currency Fees. Executive Order 12866 For the reasons set forth in the (ii) For purposes of this paragraph preamble, part 8 of chapter I of title 12 (a)(6): The OCC has determined that this of the Code of Federal Regulations is (A) Non-lead bank means a national interim rule is not a significant amended as set forth below: bank that is not the lead bank in a bank regulatory action for purposes of holding company that controls two or Executive Order 12866. PART 8ÐASSESSMENT OF FEES; more national banks; Unfunded Mandates Reform Act of NATIONAL BANKS; DISTRICT OF (B) Lead bank means the largest 1995 COLUMBIA BANKS national bank controlled by a bank holding company, based on a Section 202 of the Unfunded 1. The authority citation for part 8 is revised to read as follows: comparison of the total assets held by Mandates Reform Act of 1995, Pub. L. each national bank owned by that bank 104–4 (Unfunded Mandates Act), Authority: 12 U.S.C. 93a, 481, 482, and holding company as reported in each requires that an agency prepare a 3102; 15 U.S.C. 78c and 78l; and 26 D.C. bank’s Call Report filed for the quarter Code 102. budgetary impact statement before immediately preceding the payment of a promulgating any rule likely to result in 2. In § 8.2, paragraph (b) is semiannual assessment; and a Federal mandate that may result in the redesignated as paragraph (b)(1) and the (C) Bank holding company and expenditure by State, local, and tribal two undesignated paragraphs at the end control have the same meanings as these governments, in the aggregate, or by the of the section are designated as terms have in sections 2(a)(1) and private sector of $100 million or more paragraphs (b)(2) and (b)(3), 2(a)(2), respectively, of the Bank in any one year. If a budgetary impact respectively. Holding Company Act of 1956 (12 statement is required, section 205 of the 3. In § 8.2, the last sentence of U.S.C. 1841 (a)(1) and (a)(2)). Unfunded Mandates Act also requires paragraph (a)(5) and the last sentence of an agency to identify and consider a newly designated paragraph (b)(3) are * * * * * Dated: November 27, 1996. reasonable number of regulatory amended by removing the phrase alternatives before promulgating a rule. ‘‘without proration for any reason’’. Eugene A. Ludwig, The OCC has determined that the 4. Section 8.2 is amended by adding Comptroller of the Currency. interim rule will not result in a new paragraph (a)(6) to read as [FR Doc. 96–30763 Filed 11–29–96; 8:45 am] expenditures by State, local, and tribal follows: BILLING CODE 4810±33±P federal register December 2,1966 Monday of noSignificantImpact Environmental AssessmentandFinding James A.FitzpatrickNuclearPowerPlant, York Power AuthorityoftheStateNew Commission Nuclear Regulatory Part IX 64003 64004 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notice

NUCLEAR REGULATORY where necessary to support uprated Power uprate will not change the COMMISSION operation. method of generating electricity nor the The proposed action involves NRC method of handling any influents from [Docket No. 50±333] issuance of a license amendment to nor effluents to the environment. Power Authority of the State of New uprate the authorized power level by Therefore, no new or different types of York, James A. Fitzpatrick Nuclear changing the operating license, environmental impacts are expected. Power Plant, Environmental including Appendix A of the license The evaluation is based upon Assessment and Finding of no (Technical Specifications). information provided by the licensee in Significant Impact an April 1993 GE licensing topical The Need for the Proposed Action report supporting the JAFNPP power The U.S. Nuclear Regulatory The proposed action is needed to uprate. Commission (the Commission) is allow the licensee to increase the The nonradiological environmental considering issuance of an amendment potential electrical output of JAFNPP by effects of the uprate will be controlled to Facility Operating License No. DPR– approximately 32 megawatts-electric. at the same levels as for the original 59, issued to Power Authority of the The power uprate program at JAFNPP analysis except for a small (<5%) heat State of New York (the licensee), for would provide additional electric power addition to Lake Ontario. All other operation of the James A. FitzPatrick to service domestic and commercial limits for the plant environmental Nuclear Power Plant (JAFNPP), located areas of the licensee’s grid. releases, such as maximum lake return in Oswego County, New York. Environmental Impacts of the Proposed temperature, lake water maximum change in temperature, and plant vent Environmental Assessment Action: radiological limits will not be increased Identification of the Proposed Action: The ‘‘Final Environmental Statement (FES) related to operation of FitzPatrick or exceeded as a consequence of uprate. This Environmental Assessment has NYPA was notified by the New York been prepared to address potential Nuclear Power Plant’’ issued in March 1973 (Reference 4) assumed a maximum State Department of Environmental environmental issues related to the Conservation, by letter dated December licensee’s application to amend the power level of 2550 MWt in it’s analyses. By letter dated June 12, 1992, 1, 1995, that the State Pollutant JAFNPP operating license dated June 12, Discharge Elimination System Permit 1992, as supplemented by letters dated the licensee submitted the proposed amendment to implement power uprate for the facility was modified to allow a September 17, 1992, March 17, 1993, net heat addition of 6.00x109 Btu/hr to August 17, 1993, August 18, 1993, for JAFNPP, which is the subject of this environmental assessment the uprated Lake Ontario. December 29, 1993, June 29, 1995, This change will eliminate the need to power level would be 2536 MWt. The August 15, 1996, October 3, 1996, and reduce power during uprate operations uprated power level would be within October 23, 1996. The proposed during periods of high lake temperature. the bounding analysis of the FES. amendment would increase the licensed The vast majority of the time FitzPatrick Section 11.3 of the JAFNPP power core thermal power from 2436 MWt to can be operated at full uprated power uprate licensing topical report (GE 2536 MWt, which represents an and remain within pre-uprate limits. report NEDC–32016P, Revision 1,) approximate increase of 4.1% thermal Therefore, the environmental impact of which was submitted on August 18, power over the current licensed power power uprate is not significant. level. This request is in accordance with 1993, provided an environmental Nonradiological effluent discharges the generic boiling water reactor (BWR) assessment of the proposed power from other systems were also power uprate program established by uprate. Some environmental effects will considered. Nonradiological effluent the General Electric Company (GE) remain the same, while power uprate limits for systems such as floor and (Reference 1) and approved by the U.S. may nominally increase others. Actual equipment drains are established in Nuclear Regulatory Commission (NRC) effects are at worst proportional to the SPDES permit. Discharges from these staff in a letter from W. Russell, NRC, approximately 4.8% increase of original systems are not expected to change to P. Marriotte, GE, dated September 30, steam flow. significantly, if at all, because operation 1991 (Reference 2). Implementation of The licensee provided information at uprated power levels are governed by the proposed power uprate at JAFNPP regarding the nonradiological and the limits in the SPDES permit. Thus, will result in a 4.8% increase in rated radiological environmental effects of the the staff finds that the impact on the steam flow. New fuel designs are not proposed action in the licensee’s environment from those systems as a needed for power uprate. New fuel application to amend the JAFNPP result of operation at uprated power designs may be used to provide operating license dated June 12, 1992, as levels is not significant. additional operating flexibility and supplemented by letters dated With regard to potential maintain fuel cycle length. The higher September 17, 1992, March 17, 1993, nonradiological impacts, the proposed power level will be achieved by August 17, 1993, August 18, 1993, action does involve features located extending the power/flow map by December 29, 1993, June 29, 1995, entirely within the restricted area as increasing core flow along existing flow August 15, 1996 October 3, 1996, and defined in 10 CFR Part 20. It does not control lines. The maximum October 23, 1996. affect nonradiological plant effluents recirculation flow limit will not be The Commission has completed its and has no other environmental impact. increased. Uprated operation will evaluation of the proposed action and Accordingly, the Commission concludes involve a slightly higher reactor vessel concludes that there are no significant that there are no significant dome pressure. Implementation of this radiological or non-radiological nonradiological environmental impacts proposed power uprate will require environmental impacts associated with associated with the proposed action. minor modifications, such as, resetting the proposed amendment. A summary of the low set safety relief setpoints, as of the nonradiological and radiological Radiological Environmental well as the calibration of plant effects on the environment that may Assessment instrumentation to reflect the uprated result from the proposed amendments is The licensee evaluated the impact of power. Plant operating, emergency, and provided below. Nonradiological the proposed power uprate amendment other procedure changes will be made Environmental Assessment: to show that the applicable regulatory Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notice 64005 acceptance criteria relative to building atmosphere) depends on the operation and post-accident may radiological environmental impacts will number and nature of fuel rod defects. increase slightly (at most, proportional continue to be satisfied for the uprated The concentration of activation to the increase in power level). The power conditions. In conducting this products contained in the reactor slight increases in in-plant radiation evaluation, the licensee considered the coolant is expected to remain levels expected due to the proposed effect of the higher power level on unchanged, since the linear increase in power uprate are not expected to affect liquid radioactive wastes, gaseous the production of these activation radiation zoning or shielding radioactive wastes, and radiation levels products will be offset by the linear requirements. Individual worker both in the plant and offsite during both increase in steaming rate. Therefore, occupational exposures will be normal and post-accident conditions. based on its review of the various maintained within acceptable limits by The liquid radwaste treatment building ventilation systems, the NRC the existing Health Physics program systems receive inputs from a variety of staff has concluded that there will not which the licensee uses to control sources (e.g. leakage from component be a significant adverse effect on access to radiation areas. cooling water system, reactor coolant airborne radioactive effluents as a result Therefore, the NRC staff has system, condensate and feedwater of the proposed power uprate. concluded that the slightly increased in- system, turbine plant cooling water Radiolysis of the reactor coolant plant radiation levels will not have a system, and auxiliary steam system). causes the formation of hydrogen and significant environmental impact. The Leakages from these systems are not oxygen, the quantities of which increase offsite doses associated with normal expected to increase significantly since linearly with core power. These operation are not significantly affected the operating pressures of these systems additional quantities of hydrogen and by operation at the proposed uprated are either being maintained constant or oxygen would increase the flow to the power level and are expected to remain are being increased only slightly due to recombiners by 4.8% during uprated well within the limits of 10 CFR Part 20 the proposed power uprate. power conditions. The offgas system and 10 CFR Part 50, Appendix I. These The largest single source of liquid was originally designed for 105 percent limits are imposed by Technical radioactive waste is from the ultrasonic of warranted steam flow which would Specification which will not be changed cleaning of the condensate not be exceeded during operation at the by the proposed power uprate. demineralizers. These demineralizers proposed uprated power level. Therefore, the NRC staff has remove activated corrosion products Therefore, no changes will be required concluded that the offsite doses due to which are expected to increase in the offgas system since the offgas normal operation at the proposed uprate proportionally to the proposed power system will be operated within the conditions will not result in a uprate. However, the total volume of original evaluated design condition. significant environmental impact. processed waste is not expected to There will be no environmental impact The licensee considered the following increase significantly, since the only that was not previously evaluated. design basis accidents in the re- appreciable increase in processed waste The SGTS is designed to minimize assessment of the radiological will result in a slight decrease in the offsite and control room radiation dose consequences at JAFNPP under power time interval between ultrasonic rates during venting and purging of both uprate conditions: cleaning or regeneration of the the primary and secondary containment (1) LOCA (drywell leakage and ESF condensate demineralizers. The atmosphere under accident or abnormal component leakage pathways), reported time between ultrasonic conditions. This is accomplished by (2) Main Steam Line Break (MSLB) cleaning or regeneration is 65 days and maintaining the secondary containment outside containment, is not expected to decrease significantly at a slightly negative pressure (more (3) Control Rod Drop Accident at uprate. Based on a review of plant negative than or equal to -0.25 inch (CRDA), and effluent reports and the slight increase water gauge) with respect to the outside (4) Refueling Accident (RA) expected due to the proposed power atmosphere and discharging the The basic data and assumptions in uprate, the NRC staff has concluded that secondary containment atmosphere each of the four accident scenarios are the slight increase in the processing of through high-efficiency particulate air consistent with the current licensing liquid radioactive wastes will not have (HEPA) filters and charcoal absorbers. basis and the models in the Standard a significant increase in environmental The capacity of the SGTS was selected Review Plan (US NRC NUREG–0800) impact and that the requirements of 10 to provide one secondary containment and applicable regulatory guides. The CFR Part 20 and 10 CFR Part 50, air volume change per day and thereby highest immersion dose to an offsite Appendix I, will continue to be met. maintain the reactor building at a slight receptor is 11.2 rem, to the thyroid at Gaseous radioactive effluents are negative pressure. This capability is not the low population zone following a produced during both normal operation affected by power uprate. The charcoal design basis LOCA. The worst case and abnormal operational occurrences. filter beds are unaffected by power offsite dose with respect to the These effluents are collected, controlled, uprate. The total post-LOCA iodine regulatory limits is the post-LOCA processed, stored, and disposed of by loading increases slightly at the uprated whole body dose at the site boundary, the gaseous radioactive waste conditions, there are no radiological which amounts to 8.5% of the limit. For management systems which include the consequences because the increased the control room, the worst case various building ventilation systems, loading remains within the design immersion dose is to the thyroid the offgas system, and the standby gas absorption capacity of the filter beds. following a CRDA. It amounts to treatment system (SGTS). The Therefore, the staff finds there would be approximately 77% of the regulatory concentration of radioactive gaseous no significant increase in environmental limit. The licensee’s analyses indicate effluents released through the building impact. that the calculated offsite radiological ventilation systems during normal The licensee has evaluated the effects consequences doses for all DBAs are operation is not expected to increase of the power uprate on in-plant within the dose acceptance criteria significantly due to the proposed power radiation levels in the JAFNPP facility stated in the NRC’s SRP and 10 CFR Part uprate since the amount of fission during both normal operation and post- 100 and also comply with the dose products released into the reactor accident. The licensee has concluded acceptance criteria for control room coolant (and subsequently into the that radiation levels during both normal operators given in General Design 64006 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Notice

Criteria (GDC) 19 of Appendix A to 10 Alternative Use of Resources The Gelman Building, 2120 L Street, CFR Part 50. The staff concludes that This action does not involve the use NW., Washington, DC, and at the local the offsite radiological consequences of any resources not previously public document room located at the and control room operator doses for all considered in the Final Environmental Reference and Documents Department, DBAs at the uprated power level will Statement for the James A. FitzPatrick Penfield Library, State University of continue to meet the acceptance criteria Nuclear Power Plant. New York, Oswego, New York 13126. of the SRP, 10 CFR Part 100, and GDC References 19. Agencies and Persons Consulted The power uprate will not increase In accordance with its stated policy, 1. GE Nuclear Energy, ‘‘Generic the probability or consequences of on April 22, 1996, the staff consulted Guidelines for General Electric Boiling accidents, no changes are being made in with the New York State official, F. Water Reactor Power Uprate,’’ Licensing the types of any effluents that may be William Valentino of the New York Topical Report NEDO–31897, Class 1 released offsite, and there is no State Energy, Research and (non-proprietary), February 1992; and significant increase in the allowable Development Authority, regarding the NEDC–31897P-A, Class III (proprietary), individual or cumulative occupational environmental impact of the proposed May 1992. radiation exposure. Accordingly, the action. The State official had no 2. W.T. Russell, U.S. Nuclear Commission concludes that there are no comments. Regulatory Commission, letter to P.W. Marriott, General Electric Company, significant radiological environmental Finding of no Significant Impact impacts associated with the proposed ‘‘Staff Position Concerning General action. Alternatives to the Proposed Based upon the environmental Electric Boiling Water Reactor Power Action: assessment, the Commission concludes Uprate Program,’’ September 30, 1991. that the proposed action will not have 3. Final Environmental Statement Since the Commission has concluded a significant effect on the quality of the related to operation of James A. there is no measurable environmental human environment. Accordingly, the FitzPatrick Nuclear Power Plant, March impact associated with the proposed Commission has determined not to 1973. action, any alternatives with equal or prepare an environmental impact Dated at Rockville, Maryland, this greater environmental impact need not statement for the proposed action. 26th day of November 1996. be evaluated. As an alternative to the For further details with respect to the For the Nuclear Regulatory proposed action, the staff considered proposed action, see the licensee’s letter Commission denial of the proposed action. Denial of dated June 12, 1992, as supplemented the application would result in no by letters dated September 17, 1992, S. Singh Bajwa, change in current environmental March 17, 1993, August 17, 1993, Acting Director, Project Directorate I–1 impacts. August 18, 1993, December 29, 1993, Division of Reactor Projects-I/II Office of The environmental impacts of the and June 29, 1995, which are available Nuclear Reactor Regulation proposed action and the alternative for public inspection at the [FR Doc. 96–30899 Filed 11–29–96; 2:16 pm] action are similar. Commission’s Public Document Room, BILLING CODE 7590±01±P i

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REMINDERS Texas; published 10-29-96 Non-lead banks; lower Impact aid program; The items in this list were FEDERAL TRADE assessments; published comments due by 12-6- editorially compiled as an aid COMMISSION 12-2-96 96; published 10-7-96 to Federal Register users. 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tolerances in food, published 11-1-96 Nucleotide and/or amino tank program approvals-- animal feeds, and raw TRANSPORTATION acid sequence listings; Massachusetts; comments agricultural commodities: DEPARTMENT changes; comments due due by 12-2-96; Triadimefon; published 12-2- Federal Aviation by 12-3-96; published 10- published 10-31-96 96 Administration 4-96 Pesticide programs: FEDERAL Airworthiness standards: Patent practitioners; Pesticides and ground water COMMUNICATIONS Special conditions-- registration examination, strategy; State COMMISSION de Havilland; DHC-8-400 continuing education management plan Radio stations; table of airplane; published 11- requirement, and annual regulation; comments due assignments: 1-96 fee; comments due by 12-6- by 12-6-96; published 11- California; published 10-29- TREASURY DEPARTMENT 96; published 9-30-96 6-96 96 Comptroller of the Currency EDUCATION DEPARTMENT Pesticides; tolerances in food, Kentucky; published 10-30- Fees assesment; national and Elementary and secondary animal feeds, and raw 96 District of Columbia banks: education: agricultural commodities: Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Reader Aids iii

Sodium bicarbonate, etc.; HEALTH AND HUMAN government; procedures; Commercial space launch comments due by 12-6- SERVICES DEPARTMENT comments due by 12-2-96; activities, licensed; financial 96; published 11-6-96 Food and Drug published 10-2-96 responsibility requirements; Superfund program: Administration INTERIOR DEPARTMENT comments due by 12-2-96; published 10-2-96 National oil and hazardous Food for human consumption: Surface Mining Reclamation substances contingency Infant formula; current good and Enforcement Office Rulemaking petitions; manufacturing practice, plan-- Permanent program and summary and disposition; quality control procedures, National priorities list abandoned mine land comments due by 12-2-96; etc.; comments due by update; comments due reclamation plan published 10-4-96 12-6-96; published 9-23- by 12-2-96; published submissions: 10-31-96 96 TRANSPORTATION Human drugs: Texas; comments due by DEPARTMENT National priorities list Sunscreens; photochemistry 12-4-96; published 11-4- update; comments due 96 Maritime Administration by 12-2-96; published and photobiology; LIBRARY OF CONGRESS Subsidized vessels and 10-31-96 meeting; comments due by 12-6-96; published 8- Copyright Office, Library of operators: FEDERAL 15-96 Congress COMMUNICATIONS Maritime security program; Medical devices: Copyright office and COMMISSION establishment; comments Current good manufacturing procedures: due by 12-2-96; published Practice and procedure: practice regulations; Registration of claims-- 11-18-96 Omnibus Consolidated incorporation into quality ``Best Edition'' of Appropriations Act of system regulation; TRANSPORTATION published copyrighted 1997-- comments due by 12-6- DEPARTMENT works; comments due 96; published 10-7-96 Wireless communications by 12-6-96; published Surface Transportation service; thirty megahertz HOUSING AND URBAN 11-15-96 Board of spectrum; comments DEVELOPMENT due by 12-4-96; DEPARTMENT MANAGEMENT AND Tariffs and schedules: BUDGET OFFICE published 11-20-96 Community development block Motor carriers and freight Radio stations; table of grants: Federal Procurement Policy forwarders; tariff assignments: Hispanic-serving institutions Office requirement for Kansas; comments due by work study program; Acquisition regulations: transportation of 12-2-96; published 10-24- comments due by 12-2- Cost Accounting Standards household goods; 96 96; published 10-2-96 Board-- comments due by 12-4- Minnesota; comments due INTERIOR DEPARTMENT Cost accounting practices 96; published 11-4-96 Land Management Bureau changes; comments due by 12-2-96; published 10- TREASURY DEPARTMENT 24-96 Land resource management: by 12-2-96; published New Mexico; comments due Disposition; sales-- 9-18-96 Alcohol, Tobacco and by 12-2-96; published 10- Townsites; land disposal TRANSPORTATION Firearms Bureau 24-96 for school purposes; DEPARTMENT Alcohol, tobacco, and other FEDERAL ELECTION comments due by 12-2- Federal Aviation excise taxes: COMMISSION 96; published 10-3-96 Administration Special laws and rules; Firearms; categories of Reports by political Airworthiness directives: mineral lands nonmineral persons prohibited from committees: entries; comments due by de Havilland; comments due receiving firearms; Best efforts; comments due 12-2-96; published 11-1- by 12-5-96; published 10- definitions; comments due by 12-6-96; published 10- 96 3-96 by 12-5-96; published 9-6- 9-96 Range management: Airbus; comments due by 96 FEDERAL RESERVE Grazing administration; 12-2-96; published 10-23- Alcoholic beverages: SYSTEM Alaska reindeer; 96 Bank holding companies and comments due by 12-2- AlliedSignal Inc.; comments Distilled spirits, wine, and change in bank control 96; published 11-1-96 due by 12-2-96; published beer; importation; comments due by 12-3- (Regulation Y): Wild and scenic rivers; 10-3-96 96; published 11-5-96 Board approval requirement comments due by 12-4-96; Construcciones to engage de novo in published 11-4-96 Aeronauticas, S.A.; TREASURY DEPARTMENT permissible nonbanking INTERIOR DEPARTMENT comments due by 12-2- Customs Service activities; comments due Minerals Management 96; published 10-23-96 by 12-2-96; published 11- Service Jetstream; comments due Articles conditionally free, 1-96 Natural gas from Indian by 12-2-96; published 11- subject to reduced rate, FEDERAL RETIREMENT leases; valuation; comments 8-96 etc.: THRIFT INVESTMENT due by 12-3-96; published McDonnell Douglas; Containers designated as BOARD 11-25-96 comments due by 12-2- instruments of Administrative errors INTERIOR DEPARTMENT 96; published 10-23-96 international traffic in correction; comments due National Park Service Class E airspace; comments point-to-point local traffic; by 12-5-96; published 11-5- Historic preservation programs; due by 12-5-96; published comments due by 12-3- 96 State, Tribal, and local 11-1-96 96; published 10-4-96 iv Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Reader Aids

CFR CHECKLIST Title Stock Number Price Revision Date 600–End ...... (869–028–00038–0) ...... 31.00 Jan. 1, 1996 This checklist, prepared by the Office of the Federal Register, is 13 ...... (869–028–00039–8) ...... 18.00 Mar. 1, 1996 published weekly. It is arranged in the order of CFR titles, stock 14 Parts: numbers, prices, and revision dates. 1–59 ...... (869–028–00040–1) ...... 34.00 Jan. 1, 1996 An asterisk (*) precedes each entry that has been issued since last 60–139 ...... (869–028–00041–0) ...... 30.00 Jan. 1, 1996 week and which is now available for sale at the Government Printing 140–199 ...... (869–028–00042–8) ...... 13.00 Jan. 1, 1996 Office. 200–1199 ...... (869–028–00043–6) ...... 23.00 Jan. 1, 1996 A ``●'' precedes each entry that is now available on-line through 1200–End ...... (869–028–00044–4) ...... 16.00 Jan. 1, 1996 the Government Printing Office's GPO Access service at http:// 15 Parts: www.access.gpo.gov/nara/cfr. For information about GPO Access 0–299 ...... (869–028–00045–2) ...... 16.00 Jan. 1, 1996 call 1-888-293-6498 (toll free). 300–799 ...... (869–028–00046–1) ...... 26.00 Jan. 1, 1996 A checklist of current CFR volumes comprising a complete CFR set, 800–End ...... (869–028–00047–9) ...... 18.00 Jan. 1, 1996 also appears in the latest issue of the LSA (List of CFR Sections 16 Parts: Affected), which is revised monthly. 0–149 ...... (869–028–00048–7) ...... 6.50 Jan. 1, 1996 The annual rate for subscription to all revised volumes is $883.00 150–999 ...... (869–028–00049–5) ...... 19.00 Jan. 1, 1996 domestic, $220.75 additional for foreign mailing. 1000–End ...... (869–028–00050–9) ...... 26.00 Jan. 1, 1996 Mail orders to the Superintendent of Documents, Attn: New Orders, 17 Parts: P.O. Box 371954, Pittsburgh, PA 15250±7954. All orders must be 1–199 ...... (869–028–00052–5) ...... 21.00 Apr. 1, 1996 accompanied by remittance (check, money order, GPO Deposit 200–239 ...... (869–028–00053–3) ...... 25.00 Apr. 1, 1996 Account, VISA, or Master Card). Charge orders may be telephoned 240–End ...... (869–028–00054–1) ...... 31.00 Apr. 1, 1996 to the GPO Order Desk, Monday through Friday, at (202) 512±1800 from 8:00 a.m. to 4:00 p.m. eastern time, or FAX your charge orders 18 Parts: to (202) 512-2250. 1–149 ...... (869–028–00055–0) ...... 17.00 Apr. 1, 1996 150–279 ...... (869–028–00056–8) ...... 12.00 Apr. 1, 1996 Title Stock Number Price Revision Date 280–399 ...... (869–028–00057–6) ...... 13.00 Apr. 1, 1996 1, 2 (2 Reserved) ...... (869–028–00001–1) ...... $4.25 Feb. 1, 1996 400–End ...... (869–028–00058–4) ...... 11.00 Apr. 1, 1996 3 (1995 Compilation 19 Parts: and Parts 100 and 1–140 ...... (869–028–00059–2) ...... 26.00 Apr. 1, 1996 101) ...... (869–028–00002–9) ...... 22.00 1 Jan. 1, 1996 141–199 ...... (869–028–00060–6) ...... 23.00 Apr. 1, 1996 4 ...... (869–028–00003–7) ...... 5.50 Jan. 1, 1996 200–End ...... (869–028–00061–4) ...... 12.00 Apr. 1, 1996 5 Parts: 20 Parts: 1–399 ...... (869–028–00062–2) ...... 20.00 Apr. 1, 1996 1–699 ...... (869–028–00004–5) ...... 26.00 Jan. 1, 1996 ● 700–1199 ...... (869–028–00005–3) ...... 20.00 Jan. 1, 1996 400–499 ...... (869–028–00063–1) ...... 35.00 Apr. 1, 1996 1200–End, 6 (6 500–End ...... (869–028–00064–9) ...... 32.00 Apr. 1, 1996 Reserved) ...... (869–028–00006–1) ...... 25.00 Jan. 1, 1996 21 Parts: ●1–99 ...... (869–028–00065–7) ...... 16.00 Apr. 1, 1996 7 Parts: ● ...... 100–169 ...... (869–028–00066–5) ...... 22.00 Apr. 1, 1996 0–26 (869–028–00007–0) 22.00 Jan. 1, 1996 ● 27–45 ...... (869–028–00008–8) ...... 11.00 Jan. 1, 1996 170–199 ...... (869–028–00067–3) ...... 29.00 Apr. 1, 1996 ● 46–51 ...... (869–028–00009–6) ...... 13.00 Jan. 1, 1996 200–299 ...... (869–028–00068–1) ...... 7.00 Apr. 1, 1996 ● 52 ...... (869–028–00010–0) ...... 5.00 Jan. 1, 1996 300–499 ...... (869–028–00069–0) ...... 50.00 Apr. 1, 1996 ● 53–209 ...... (869–028–00011–8) ...... 17.00 Jan. 1, 1996 500–599 ...... (869–028–00070–3) ...... 28.00 Apr. 1, 1996 ● 210–299 ...... (869–028–00012–6) ...... 35.00 Jan. 1, 1996 600–799 ...... (869–028–00071–1) ...... 8.50 Apr. 1, 1996 ● 300–399 ...... (869–028–00013–4) ...... 17.00 Jan. 1, 1996 800–1299 ...... (869–028–00072–0) ...... 30.00 Apr. 1, 1996 ● 400–699 ...... (869–028–00014–2) ...... 22.00 Jan. 1, 1996 1300–End ...... (869–028–00073–8) ...... 14.00 Apr. 1, 1996 700–899 ...... (869–028–00015–1) ...... 25.00 Jan. 1, 1996 22 Parts: 900–999 ...... (869–028–00016–9) ...... 30.00 Jan. 1, 1996 1–299 ...... (869–028–00074–6) ...... 36.00 Apr. 1, 1996 1000–1199 ...... (869–028–00017–7) ...... 35.00 Jan. 1, 1996 300–End ...... (869–028–00075–4) ...... 24.00 Apr. 1, 1996 1200–1499 ...... (869–028–00018–5) ...... 29.00 Jan. 1, 1996 1500–1899 ...... (869–028–00019–3) ...... 41.00 Jan. 1, 1996 23 ...... (869–028–00076–2) ...... 21.00 Apr. 1, 1996 1900–1939 ...... (869–028–00020–7) ...... 16.00 Jan. 1, 1996 24 Parts: 1940–1949 ...... (869–028–00021–5) ...... 31.00 Jan. 1, 1996 0–199 ...... (869–028–00077–1) ...... 30.00 May 1, 1996 1950–1999 ...... (869–028–00022–3) ...... 39.00 Jan. 1, 1996 200–219 ...... (869–028–00078–9) ...... 14.00 May 1, 1996 2000–End ...... (869–028–00023–1) ...... 15.00 Jan. 1, 1996 220–499 ...... (869–028–00079–7) ...... 13.00 May 1, 1996 8 ...... (869–028–00024–0) ...... 23.00 Jan. 1, 1996 500–699 ...... (869–028–00080–1) ...... 14.00 May 1, 1996 700–899 ...... (869–028–00081–9) ...... 13.00 May 1, 1996 9 Parts: 900–1699 ...... (869–028–00082–7) ...... 21.00 May 1, 1996 1–199 ...... (869–028–00025–8) ...... 30.00 Jan. 1, 1996 1700–End ...... (869–028–00083–5) ...... 14.00 May 1, 1996 200–End ...... (869–028–00026–6) ...... 25.00 Jan. 1, 1996 25 ...... (869–028–00084–3) ...... 32.00 May 1, 1996 10 Parts: 0–50 ...... (869–028–00027–4) ...... 30.00 Jan. 1, 1996 26 Parts: 51–199 ...... (869–028–00028–2) ...... 24.00 Jan. 1, 1996 §§ 1.0-1–1.60 ...... (869–028–00085–1) ...... 21.00 Apr. 1, 1996 200–399 ...... (869–028–00029–1) ...... 5.00 Jan. 1, 1996 §§ 1.61–1.169 ...... (869–028–00086–0) ...... 34.00 Apr. 1, 1996 400–499 ...... (869–028–00030–4) ...... 21.00 Jan. 1, 1996 §§ 1.170–1.300 ...... (869–028–00087–8) ...... 24.00 Apr. 1, 1996 500–End ...... (869–028–00031–2) ...... 34.00 Jan. 1, 1996 §§ 1.301–1.400 ...... (869–028–00088–6) ...... 17.00 Apr. 1, 1996 §§ 1.401–1.440 ...... (869–028–00089–4) ...... 31.00 Apr. 1, 1996 11 ...... (869–028–00032–1) ...... 15.00 Jan. 1, 1996 §§ 1.441-1.500 ...... (869-028-00090-8) ...... 22.00 Apr. 1, 1996 12 Parts: §§ 1.501–1.640 ...... (869–028–00091–6) ...... 21.00 Apr. 1, 1996 1–199 ...... (869–028–00033–9) ...... 12.00 Jan. 1, 1996 §§ 1.641–1.850 ...... (869–028–00092–4) ...... 25.00 Apr. 1, 1996 200–219 ...... (869–028–00034–7) ...... 17.00 Jan. 1, 1996 §§ 1.851–1.907 ...... (869–028–00093–2) ...... 26.00 Apr. 1, 1996 220–299 ...... (869–028–00035–5) ...... 29.00 Jan. 1, 1996 §§ 1.908–1.1000 ...... (869–028–00094–1) ...... 26.00 Apr. 1, 1996 300–499 ...... (869–028–00036–3) ...... 21.00 Jan. 1, 1996 §§ 1.1001–1.1400 ...... (869–028–00095–9) ...... 26.00 Apr. 1, 1996 500–599 ...... (869–028–00037–1) ...... 20.00 Jan. 1, 1996 §§ 1.1401–End ...... (869–028–00096–7) ...... 35.00 Apr. 1, 1996 Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Reader Aids v

Title Stock Number Price Revision Date Title Stock Number Price Revision Date 2–29 ...... (869–028–00097–5) ...... 28.00 Apr. 1, 1996 ●136–149 ...... (869–028–00150–5) ...... 35.00 July 1, 1996 30–39 ...... (869–028–00098–3) ...... 20.00 Apr. 1, 1996 150–189 ...... (869–026–00151–1) ...... 25.00 July 1, 1995 40–49 ...... (869–028–00099–1) ...... 13.00 Apr. 1, 1996 ●190–259 ...... (869–028–00152–1) ...... 22.00 July 1, 1996 50–299 ...... (869–028–00100–9) ...... 14.00 Apr. 1, 1996 260–299 ...... (869–026–00153–7) ...... 40.00 July 1, 1995 300–499 ...... (869–028–00101–7) ...... 25.00 Apr. 1, 1996 ●300–399 ...... (869–028–00154–8) ...... 28.00 July 1, 1996 500–599 ...... (869–028–00102–5) ...... 6.00 4 Apr. 1, 1990 ●400–424 ...... (869–028–00155–6) ...... 33.00 July 1, 1996 600–End ...... (869–028–00103–3) ...... 8.00 Apr. 1, 1996 ●425–699 ...... (869–028–00156–4) ...... 38.00 July 1, 1996 ● 27 Parts: 700–789 ...... (869–028–00157–2) ...... 33.00 July 1, 1996 ● ...... 1–199 ...... (869–028–00104–1) ...... 44.00 Apr. 1, 1996 790–End (869–028–00158–7) 19.00 July 1, 1996 200–End ...... (869–028–00105–0) ...... 13.00 Apr. 1, 1996 41 Chapters: 1, 1–1 to 1–10 ...... 13.00 3 July 1, 1984 28 Parts: ...... 1, 1–11 to Appendix, 2 (2 Reserved) ...... 13.00 3 July 1, 1984 ...... 1-42 (869–028–00106–8) 35.00 July 1, 1996 3–6 ...... 14.00 3 July 1, 1984 ...... 43-end (869-028-00107-6) 30.00 July 1, 1996 7 ...... 6.00 3 July 1, 1984 29 Parts: 8 ...... 4.50 3 July 1, 1984 0–99 ...... (869–028–00108–4) ...... 26.00 July 1, 1996 9 ...... 13.00 3 July 1, 1984 100–499 ...... (869–028–00109–2) ...... 12.00 July 1, 1996 10–17 ...... 9.50 3 July 1, 1984 500–899 ...... (869–028–00110–6) ...... 48.00 July 1, 1996 18, Vol. I, Parts 1–5 ...... 13.00 3 July 1, 1984 900–1899 ...... (869–028–00111–4) ...... 20.00 July 1, 1996 18, Vol. II, Parts 6–19 ...... 13.00 3 July 1, 1984 1900–1910 (§§ 1909 to 18, Vol. III, Parts 20–52 ...... 13.00 3 July 1, 1984 1910.999) ...... (869–028–00112–2) ...... 43.00 July 1, 1996 19–100 ...... 13.00 3 July 1, 1984 1910 (§§ 1910.1000 to 1–100 ...... (869–028–00159–9) ...... 12.00 July 1, 1996 end) ...... (869–028–00113–1) ...... 27.00 July 1, 1996 101 ...... (869–028–00160–2) ...... 36.00 July 1, 1996 1911–1925 ...... (869–028–00114–9) ...... 19.00 July 1, 1996 102–200 ...... (869–028–00161–1) ...... 17.00 July 1, 1996 1926 ...... (869–028–00115–7) ...... 30.00 July 1, 1996 201–End ...... (869–028–00162–9) ...... 17.00 July 1, 1996 *1927–End ...... (869–028–00116–5) ...... 38.00 July 1, 1996 42 Parts: 30 Parts: 1–399 ...... (869–026–00163–4) ...... 26.00 Oct. 1, 1995 1–199 ...... (869–028–00117–3) ...... 33.00 July 1, 1996 400–429 ...... (869–026–00164–2) ...... 26.00 Oct. 1, 1995 200–699 ...... (869–028–00118–1) ...... 26.00 July 1, 1996 430–End ...... (869–026–00165–1) ...... 39.00 Oct. 1, 1995 700–End ...... (869–028–00119–0) ...... 38.00 July 1, 1996 43 Parts: 31 Parts: ●1–999 ...... (869–026–00166–9) ...... 23.00 Oct. 1, 1995 0–199 ...... (869–028–00120–3) ...... 20.00 July 1, 1996 1000–3999 ...... (869–026–00167–7) ...... 31.00 Oct. 1, 1995 200–End ...... (869–028–00121–1) ...... 33.00 July 1, 1996 4000–End ...... (869–026–00168–5) ...... 15.00 Oct. 1, 1995 32 Parts: 44 ...... (869–026–00169–3) ...... 24.00 Oct. 1, 1995 1–39, Vol. I ...... 15.00 2 July 1, 1984 45 Parts: 1–39, Vol. II ...... 19.00 2 July 1, 1984 1–199 ...... (869–022–00170–7) ...... 22.00 Oct. 1, 1995 1–39, Vol. III ...... 18.00 2 July 1, 1984 200–499 ...... (869–028–00170–0) ...... 14.00 6 Oct. 1, 1995 1–190 ...... (869–028–00122–0) ...... 42.00 July 1, 1996 500–1199 ...... (869–026–00172–3) ...... 23.00 Oct. 1, 1995 191–399 ...... (869–028–00123–8) ...... 50.00 July 1, 1996 1200–End ...... (869–026–00173–1) ...... 26.00 Oct. 1, 1995 400–629 ...... (869–028–00124–6) ...... 34.00 July 1, 1996 630–699 ...... (869–028–00125–4) ...... 14.00 5 July 1, 1991 46 Parts: 700–799 ...... (869–028–00126–2) ...... 28.00 July 1, 1996 1–40 ...... (869–026–00174–0) ...... 21.00 Oct. 1, 1995 800–End ...... (869–028–00127–1) ...... 28.00 July 1, 1996 41–69 ...... (869–026–00175–8) ...... 17.00 Oct. 1, 1995 33 Parts: 70–89 ...... (869–026–00176–6) ...... 8.50 Oct. 1, 1995 ...... 1–124 ...... (869–028–00128–9) ...... 26.00 July 1, 1996 90–139 (869–026–00177–4) 15.00 Oct. 1, 1995 125–199 ...... (869–026–00131–6) ...... 27.00 July 1, 1995 140–155 ...... (869–026–00178–2) ...... 12.00 Oct. 1, 1995 200–End ...... (869–028–00130–1) ...... 32.00 July 1, 1996 156–165 ...... (869–026–00179–1) ...... 17.00 Oct. 1, 1995 166–199 ...... (869–026–00180–4) ...... 17.00 Oct. 1, 1995 34 Parts: ●200–499 ...... (869–026–00181–2) ...... 19.00 Oct. 1, 1995 1–299 ...... (869–028–00131–9) ...... 27.00 July 1, 1996 500–End ...... (869–026–00182–1) ...... 13.00 Oct. 1, 1995 300–399 ...... (869–028–00132–7) ...... 27.00 July 1, 1996 *400–End ...... (869–028–00133–5) ...... 46.00 July 1, 1996 47 Parts: 0–19 ...... (869–026–00183–9) ...... 25.00 Oct. 1, 1995 35 ...... (869–028–00134–3) ...... 15.00 July 1, 1996 20–39 ...... (869–026–00184–7) ...... 21.00 Oct. 1, 1995 36 Parts 40–69 ...... (869–026–00185–5) ...... 14.00 Oct. 1, 1995 1–199 ...... (869–028–00135–1) ...... 20.00 July 1, 1996 70–79 ...... (869–026–00186–3) ...... 24.00 Oct. 1, 1995 200–End ...... (869–028–00136–0) ...... 48.00 July 1, 1996 80–End ...... (869–026–00187–1) ...... 30.00 Oct. 1, 1995 37 ...... (869–028–00137–8) ...... 24.00 July 1, 1996 48 Chapters: 1 (Parts 1–51) ...... (869–026–00188–0) ...... 39.00 Oct. 1, 1995 38 Parts: 1 (Parts 52–99) ...... (869–026–00189–8) ...... 24.00 Oct. 1, 1995 *0–17 ...... (869–028–00138–6) ...... 34.00 July 1, 1996 2 (Parts 201–251) ...... (869–026–00190–1) ...... 17.00 Oct. 1, 1995 18–End ...... (869–028–00139–4) ...... 38.00 July 1, 1996 2 (Parts 252–299) ...... (869–026–00191–0) ...... 13.00 Oct. 1, 1995 39 ...... (869–028–00140–8) ...... 23.00 July 1, 1996 3–6 ...... (869–026–00192–8) ...... 23.00 Oct. 1, 1995 7–14 ...... (869–026–00193–6) ...... 28.00 Oct. 1, 1995 40 Parts: 15–28 ...... (869–026–00194–4) ...... 31.00 Oct. 1, 1995 ●1–51 ...... (869–028–00141–6) ...... 50.00 July 1, 1996 29–End ...... (869–026–00195–2) ...... 19.00 Oct. 1, 1995 ●52 ...... (869–028–00142–4) ...... 51.00 July 1, 1996 ●53–59 ...... (869–028–00143–2) ...... 14.00 July 1, 1996 49 Parts: *60 ...... (869-028-00144-1) ...... 47.00 July 1, 1996 1–99 ...... (869–026–00196–1) ...... 25.00 Oct. 1, 1995 ●61–71 ...... (869–028–00145–9) ...... 47.00 July 1, 1996 100–177 ...... (869–026–00197–9) ...... 34.00 Oct. 1, 1995 ●72–80 ...... (869–028–00146–7) ...... 34.00 July 1, 1996 178–199 ...... (869–026–00198–7) ...... 22.00 Oct. 1, 1995 ●81–85 ...... (869–028–00147–5) ...... 31.00 July 1, 1996 200–399 ...... (869–026–00199–5) ...... 30.00 Oct. 1, 1995 86 ...... (869–026–00149–9) ...... 40.00 July 1, 1995 400–999 ...... (869–026–00200–2) ...... 40.00 Oct. 1, 1995 ●87-135 ...... (869–028–00149–1) ...... 35.00 July 1, 1996 1000–1199 ...... (869–026–00201–1) ...... 18.00 Oct. 1, 1995 vi Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / Reader Aids

Title Stock Number Price Revision Date ●1200–End ...... (869–026–00202–9) ...... 15.00 Oct. 1, 1995 50 Parts: 1–199 ...... (869–026–00203–7) ...... 26.00 Oct. 1, 1995 200–599 ...... (869–026–00204–5) ...... 22.00 Oct. 1, 1995 600–End ...... (869–026–00205–3) ...... 27.00 Oct. 1, 1995 CFR Index and Findings Aids ...... (869–028–00051–7) ...... 35.00 Jan. 1, 1996 Complete 1996 CFR set ...... 883.00 1996 Microfiche CFR Edition: Subscription (mailed as issued) ...... 264.00 1996 Individual copies ...... 1.00 1996 Complete set (one-time mailing) ...... 264.00 1995 Complete set (one-time mailing) ...... 244.00 1994 1 Because Title 3 is an annual compilation, this volume and all previous volumes should be retained as a permanent reference source. 2 The July 1, 1985 edition of 32 CFR Parts 1–189 contains a note only for Parts 1–39 inclusive. For the full text of the Defense Acquisition Regulations in Parts 1–39, consult the three CFR volumes issued as of July 1, 1984, containing those parts. 3 The July 1, 1985 edition of 41 CFR Chapters 1–100 contains a note only for Chapters 1 to 49 inclusive. For the full text of procurement regulations in Chapters 1 to 49, consult the eleven CFR volumes issued as of July 1, 1984 containing those chapters. 4 No amendments to this volume were promulgated during the period Apr. 1, 1990 to Mar. 31, 1996. The CFR volume issued April 1, 1990, should be retained. 5 No amendments to this volume were promulgated during the period July 1, 1991 to June 30, 1996. The CFR volume issued July 1, 1991, should be retained. 6 No amendments were promulgated during the period October 1, 1995 to September 30, 1995. The CFR volume issued October 1, 1995 should be retained.