Unknown. Final rule

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--- schema: federal-register doc_type: fedreg source_file: FR-2003-09-08.xml --- 68 173 Monday, September 8, 2003 Contents Agricultural Agricultural Marketing Service PROPOSED RULES Fresh fruits, vegetables, and other products; inspection and certification: Fees and charges increase, 52857-52860 03-22682 Hops produced in— Various States, 52860 03-22754 Milk marketing orders: Northeast et al., 52860-52862 03-22683 Agriculture Agriculture Department See Agricultural Marketing Service See Forest Service See Rural Utilities Service Alcohol Alcohol and Tobacco Tax and Trade Bureau PROPOSED RULES Alcohol; viticultural area designations:

Eola Hills, OR, 52875-52878 03-22762 Alcohol Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 52958 03-22585 Antitrust Antitrust Division NOTICES National cooperative research notifications: Long Term Implantable Glucose Monitor, 52958 03-22761 Microcontaminant Reduction Venture, 52958-52959 03-22756 Semiconductor Test Consortium, Inc., 52959 03-22759 Southwest Research Institute, 52959 03-22758 Spoken Dialogue Interfaces for Cars, 52959 03-22757 Ultrasonic Metal Welding-Enabling the All Aluminum Vehicle, 52959-52960 03-22760 Army Army Department NOTICES Privacy Act:

Systems of records, 52908-52909 03-22690 Arts Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Centers Centers for Disease Control and Prevention NOTICES Grants and cooperative agreements; availability, etc.: Autism and Other Developmental Disabilities Surveillance and Epidemiologic Research; Data Coordinating Center, 52944-52948 03-22715 Centers Centers for Medicare & Medicaid Services NOTICES Agency information collection activities; proposals, submissions, and approvals, 52948-52949 03-22694 03-22695 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration NOTICES Overseas trade missions: 2003 trade missions— Sao Paulo, Brasilia and Recife, Brazil;

Business Development Mission, 52891-52893 03-22716 Commodity Commodity Futures Trading Commission RULES Commodity pool operators and commodity trading advisors: Registration exemption and other regulatory relief Correction, 52836-52837 03-22755 Defense Defense Department See Army Department See Defense Logistics Agency See Navy Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 52906-52907 03-22685 03-22686 Federal Acquisition Regulation (FAR):

Agency information collection activities; proposals, submissions, and approvals, 52907-52908 03-22747 Meetings: Strategic Environmental Research and Development Program Scientific Advisory Board, 52908 03-22687 Defense Defense Logistics Agency NOTICES Privacy Act: Systems of records, 52909-52911 03-22689 Drug Drug Enforcement Administration PROPOSED RULES Schedules of controlled substances: 2,5-Dimethoxy-4-(n)-propylthiophenethylamine, etc.; placement into Schedule I, 52872-52875 03-22684 Employment Employment and Training Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 52960-52961 03-22742 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Grants and cooperative agreements; availability, etc.:

Chemicals and Forest Products Industries of the Future, 52913-52914 03-22749 EPA Environmental Protection Agency RULES Air programs: Stratospheric ozone protection— Chlorobromomethane production and consumption; phaseout; correction, 52841-52843 03-22639 Air quality implementation plans; approval and promulgation; various States: Nevada, 52837-52841 03-22647 03-22648 Superfund program: Emergency planning and community right-to-know— Extremely hazardous substances list; isophorone diisocyanate; threshold planning quantity modification, 52977-52984 03-22770 PROPOSED RULES Air quality implementation plans; approval and promulgation; various States:

Nevada, 52879 03-22646 NOTICES Air pollution control: Citizens suits; proposed settlements— Environmental Defense, 52922 03-22769 Air pollution control; new motor vehicles and engines: International Center for Technology Assessment et al.; emissions control petition denied, 52922-52933 03-22764 Air programs: Ozone Air Quality; State and Tribal 8-hour designation recommendations, 52933 03-22767 Reports and guidance documents; availability, etc.: Air Quality Models Guideline, 52934-52935 03-22766 Toxic and hazardous substances control:

New chemicals— Receipt and status information, 52935-52938 03-22765 Water pollution; discharge of pollutants (NPDES): Gulf of Mexico OCS operations— Eastern portion; oil and gas extraction category; general permit, 52938 03-22768 Equal Equal Employment Opportunity Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 52938-52939 03-22719 FAA Federal Aviation Administration RULES Airworthiness directives: Eurocopter France, 52832-52833 03-22619 McCauley Propeller Systems, Inc.; correction, 52975 C3-21519 Wytwornia Sprzetu Komunikacyjnego, 52833-52835 03-22620 PROPOSED RULES Airworthiness directives:

Airbus, 52862-52864 03-22704 Empresa Brasileira de Aeronautica S.A. (EMBRAER), 52865-52868 03-22706 General Electric Aircraft Engines, 52868-52870 03-22713 McDonnell Douglas, 52864-52865, 52870-52872 03-22709 FCC Federal Communications Commission PROPOSED RULES Practice and procedure: Radiofrequency electromagnetic fields; human exposure, 52879-52889 03-22624 NOTICES Agency information collection activities; proposals, submissions, and approvals, 52939-52942 03-22678 03-22681 Meetings;

Sunshine Act, 52942-52943 03-22965 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation filings: Midwest Independent Transmission System Operator, Inc., et al., 52919 03-22702 Hydroelectric applications, 52919-52921 03-22722 03-22723 Hydroelectric applications; correction, 52921 03-22721 Meetings: Primary function test for gathering on Outer Continental Shelf, 52921-52922 03-22720 *Applications, hearings, determinations, etc.:* Algonquin Gas Transmission Co., 52914 03-22724 ANR Pipeline Co., 52914-52915 03-22735 Columbia Gas Transmission Corp., 52915 03-22732 Dominion Cove Point LNG, LP, 52915 03-22727 Energy West Development, Inc., 52915-52916 03-22726 Florida Gas Transmission Co., 52916 03-22728 Gulf South Pipeline Co., LP, 52916-52917 03-22734 Midwestern Gas Transmission Co., 52917 03-22731 Northwest Pipeline Corp., 52917-52918 03-22730 OkTex Pipeline Co., 52918 03-22733 PJM Interconnection, L.L.C., 52918 03-22736 Southern Natural Gas Co., 52918-52919 03-22729 Federal Housing Federal Housing Finance Board NOTICES Meetings;

Sunshine Act, 52943 03-22950 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies: Change in bank control, 52943-52944 03-22744 Permissible nonbanking activities, 52944 03-22743 Fish Fish and Wildlife Service NOTICES Comprehensive conservation plans; availability, etc.: Illinois River National Wildlife and Fish Refuge, IL, 52952-52953 03-22712 Forest Forest Service NOTICES Environmental statements; notice of intent: Salmon-Challis National Forest, ID, 52890-52891 03-22677 GSA General Services Administration NOTICES Federal Acquisition Regulation (FAR):

Agency information collection activities; proposals, submissions, and approvals, 52907-52908 03-22747 Health Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Health Resources and Services Administration RULES Grants: Grants management regulations; amendments, 52843-52844 03-22513 NOTICES Meetings: Physical Fitness and Sports, President's Council, 52944 03-22745 Health Health Resources and Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 52949 03-22752 Meetings:

Migrant Health National Advisory Council, 52949-52950 03-22751 Privacy Act: Systems of records; correction, 52950-52952 03-22750 Indian Indian Affairs Bureau NOTICES Tribal-State Compacts approval; Class III (casino) gambling: Forest County Potawatomi Community, WI, 52953 03-22788 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Reclamation Bureau NOTICES Committees; establishment, renewal, termination, etc.: Joint Fire Science Program Stakeholder Advisory Group, 52952 03-22780 IRS Internal Revenue Service RULES Income taxes:

Special depreciation allowance, 52985-53007 03-22670 Tax-exempt bonds issued by State and local governments; arbitrage and private activity restrictions; investment-type property and private loan (prepayment) Correction, 52975 C3-19644 PROPOSED RULES Income taxes: Special depreciation allowance; cross-reference, 53007-53009 03-22671 International International Trade Administration NOTICES Antidumping: Automotive replacement glass windshields from— China, 52893-52894 03-22785 Oil country tubular goods from— Mexico, 52894-52895 03-22784 Silicomanganese from— Brazil, 52895 03-22786 Countervailing duties:

Cut-to-length carbon steel plate from— Mexico, 52895-52904 03-22787 International International Trade Commission NOTICES Meetings; Sunshine Act, 52957 03-22893 Justice Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau See Antitrust Division See Drug Enforcement Administration NOTICES Privacy Act: Systems of records, 52957 03-22696 Labor Labor Department See Employment and Training Administration See Occupational Safety and Health Administration Maritime Maritime Administration NOTICES Coastwise trade laws; administrative waivers:

SV NAMASTE, 52974 03-22746 NASA National Aeronautics and Space Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 52970 03-22692 Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 52907-52908 03-22747 National Communications National Communications System NOTICES Meetings: National Security Telecommunications Advisory Committee, 52971 03-22700 National Foundation National Foundation on the Arts and the Humanities NOTICES Meetings:

Humanities Panel, 52971 03-22699 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management: Alaska; fisheries of Exclusive Economic Zone— Pacific cod, 52856 03-22781 NOTICES Committees; establishment, renewal, termination, etc.: Gray's Reef National Marine Sanctuary Advisory Council, 52904 03-22697 Northwestern Hawaiian Islands Coral Reef Ecosystem Reserve Advisory Council, 52904-52905 03-22698 Permits: Marine mammals, 52905-52906 03-22782 03-22783 Navy Navy Department NOTICES Inventions, Government-owned; availability for licensing, 52911 03-22693 Privacy Act:

Systems of records, 52911-52913 03-22688 Nuclear Nuclear Regulatory Commission NOTICES Environmental statements; availability, etc.: Brooklyn, NY, VA Medical Center, 52971-52972 03-22717 Meetings: Nuclear Waste Advisory Committee, 52972-52973 03-22718 Occupational Occupational Safety and Health Administration NOTICES Variance applications, etc.: American Boiler & Chimney Co. and Oak Park Chimney Corp., 52961-52970 03-22741 Personnel Personnel Management Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 52973-52974 03-22740 Health benefits, Federal employees:

Medically underserved areas (2004 CY), 52974 03-22739 Reclamation Reclamation Bureau NOTICES Environmental statements; availability, etc.: Santa Barbara County, CA; Lower Santa Ynez River; southern steelhead trout; correction, 52953 03-22714 Environmental statements; notice of intent: Southern Delivery System Project, Fryingpan-Arkansas Project, CO, 52953-52955 03-22710 Windy Gap Firming Project, Colorado-Big Thompson Project, CO, 52955-52957 03-22711 Research Research and Special Programs Administration RULES Hazardous materials:

Hazardous materials transportation— Penalty guidelines and civil penalties for guidelines violations, 52844-52856 03-22569 RUS Rural Utilities Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 52891 03-22753 Thrift Thrift Supervision Office RULES Regulatory reporting standards: Independent public accountants performing audit services for voluntary audit filers; qualifications, 52831-52832 03-22779 Transportation Transportation Department See Federal Aviation Administration See Maritime Administration See Research and Special Programs Administration RULES Economic regulations:

Airline oversales signs, 52835-52836 03-22093 Treasury Treasury Department See Alcohol and Tobacco Tax and Trade Bureau See Internal Revenue Service See Thrift Supervision Office Separate Parts In This Issue Part II Environmental Protection Agency, 52977-52984 03-22770 Part III Treasury Department, Internal Revenue Service, 52985-53009 03-22670 03-22671 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 68 173 Monday, September 8, 2003 Rules and Regulations DEPARTMENT OF THE TREASURY Office of Thrift Supervision 12 CFR Part 562 [No. 2003-45] RIN 1550-AB54 Regulatory Reporting Standards: Qualifications for Independent Public Accountants Performing Audit Services for Voluntary Audit Filers AGENCY:

Office of Thrift Supervision, Treasury. ACTION: Final rule. SUMMARY: The Office of Thrift Supervision

(OTS)is adopting as final an interim final rule that amended its annual independent audit requirements for small, non-public, highly rated savings associations that voluntarily obtain independent audits. This change made OTS's requirements more consistent with those of the other federal banking agencies and avoided the potential regulatory burden from imposing unnecessary additional restrictions. EFFECTIVE DATE: September 8, 2003. FOR FURTHER INFORMATION CONTACT: Christine Smith, Project Manager,

(202)906-5740, Examination Policy Division, or Teresa A. Scott, Counsel (Banking & Finance),

(202)906-6478, Regulations and Legislation Division, Office of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552. SUPPLEMENTARY INFORMATION: Background Savings associations that are publicly traded, 1 have assets of $500 million or more 2 , or have a 3, 4, or 5 CAMEL rating 3 must obtain and file an annual independent audit. Small, non-public, 1- or 2-rated savings associations are not required to obtain an independent audit. OTS regulations had required that public accountants conducting these independent audits (whether required or voluntary) follow the SEC independence rules, including those governing outsourcing of non-audit services. 12 CFR 562.4

(d)and

(e)(2002). 1 17 U.S.C. 78m (West 2002). Generally, federally-chartered publicly traded savings associations file annual audits with OTS, while generally publicly traded federally-chartered thrift holding companies file audits with the Securities and Exchange Commission (SEC). 2 12 CFR 363.2 (2002). These institutions file annual audits with the Federal Deposit Insurance Corporation and OTS. 3 12 CFR 562.4(b). These savings associations file annual audits with OTS. On July 30, 2002, Congress passed the Sarbanes-Oxley Act of 2002. 4 Title II of that act sets forth standards for auditor independence. The standards include section 201(g)(5), which prohibits a registered public accountant from performing an audit for a public company contemporaneously with providing that company with delineated non-audit services, including internal audit outsourcing services. This congressional mandate affected a change in the SEC independence rules. 4 Sarbanes-Oxley Act of 2002, Pub. L. 107-204, section 201, 116 Stat. 745 (2002). As reflected in the interim final rule, OTS believed that if its rules remained unchanged, a savings association obtaining a voluntary audit may not use its external auditors to perform non-auditing services. 5 Although OTS encourages non-publicly held savings associations that voluntarily file audits with the agency to follow the prohibition from Sarbanes-Oxley, OTS was concerned that an absolute prohibition in this manner may be unnecessarily detrimental to some voluntary filers. Specifically, OTS believed that small institutions with less complex operations and limited staff, may, in some instances, use their independent public accountant to perform both an external audit and some or all of an audit client's non-audit activities consistent with the OTS's safety and soundness objectives. Some of these institutions may not have access to a full range of qualified public accountants such that they could engage both an external auditor and a different outside firm to perform non-audit functions. Other institutions may reasonably have determined that the costs of having a full time in-house staff to perform those services exceed the benefits. 5 These services include bookkeeping, financial information systems design, appraisal, valuation, and actuarial services, and internal audit outsourcing services. For a complete list of prohibited activities, *see id.* at section 201. Since OTS issued the interim rule, the SEC, based on provisions from the Sarbanes-Oxley Act, added new provisions to its independence rules, including ones governing prohibited non-audit services (such as the prohibition on internal audit outsourcing), pre-approval requirements, auditor partner rotation, auditor reports to the audit committee, and conflict of interest. Without the OTS rule change, voluntary filers would also be subject to these SEC provisions on independence. The OTS is equally concerned that these additional SEC independence rules may unnecessarily burden voluntary filers. Moreover, none of the other banking agencies require that institutions that file voluntary audits follow the SEC independence rules. OTS believed that requiring savings associations to do so might place these savings associations at an unnecessary competitive disadvantage as these requirements became more restrictive. For all of these reasons, OTS is finalizing its interim rule that amended its regulation to eliminate the requirement that institutions voluntarily filing audits comply with the SEC independence rules while retaining the requirement that institutions filing voluntary audits comply with the AICPA Professional Conduct Code, including those sections that address independence. 6 6 OTS understands that passage of the Sarbanes-Oxley Act may place increased responsibilities on small publicly held savings associations, including the prohibitions against outsourcing internal non-audit services to the association's external auditor. Nothing in this rule affects those requirements. Discussion of Comments OTS received two public comments, both from trade associations. Both trade associations strongly supported the interim rule, noting that the rule change encourages voluntary filers to continue to file audits with the OTS. Moreover, the commenters heralded the fact that the same rule that applies to smaller banks by other federal banking regulators would now apply to smaller savings associations. Findings and Certifications A. Executive Order 12866 The Director of OTS has determined that this final rule does not constitute a significant regulatory action for the purposes of Executive Order 12866. B. Regulatory Flexibility Act Under the Regulatory Flexibility Act, OTS must either provide an Initial Regulatory Flexibility Analysis

(IRFA)with this final rule, or certify that the rule would not have a significant economic impact on a substantial number of small entities. Pursuant to section 605(b) of the Regulatory Flexibility Act, OTS certifies that this final rule will not have a significant economic impact on a substantial number of small entities. It removes a requirement that could, if left unchecked, inadvertently lead to potential additional regulatory burden. The final rule, which is written in plain language, reduces regulatory burden. C. Unfunded Mandates Act of 1995 Section 202 of the Unfunded Mandates Reform Act of 1995, Pub. L. 104-4 (Unfunded Mandates Act) requires that an agency prepare a budgetary impact statement before promulgating a rule that includes a Federal mandate that may result in expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year. OTS has determined that the effect of this rule will not result in expenditures by State, local, or tribal governments or by the private sector of $100 million or more. Rather, the rule imposes no new requirements and makes only burden reducing amendments to current OTS regulations. Accordingly, OTS has not prepared a budgetary impact statement for this rule or specifically addressed the regulatory alternatives considered. D. Effective Date For the reasons stated in the interim rule, published on November 25, 2002 (67 FR 70529), OTS is making this final rule effective immediately. E. Paperwork Reduction Act The OTS has determined that this interim final rule does not involve a change to collections of information previously approved under the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ). List of Subjects in 12 CFR Part 562 Accounting, Reporting and recordkeeping requirements, Savings associations. PART 562—REGULATORY REPORTING STANDARDS Accordingly, the Office of Thrift Supervision adopts as final, without change, the interim rule published on November 25, 2002 at 67 FR 70529 amending part 562 in Title 12, Chapter V, Code of Federal Regulations. Dated: *September* 2, 2003. By the Office of Thrift Supervision. James E. Gilleran, Director. [FR Doc. 03-22779 Filed 9-5-03; 8:45 am]

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