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Code · REGISTER · 2007-06-25 · PROPOSED RULES · Unknown

Unknown. Interim rule and request for comments

7,347 words·~33 min read·/register/2007/06/25/07-2983

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2007-06-25.xml --- 72 121 Monday, June 25, 2007 Contents Administration Administration on Aging See Aging Administration Aging Aging Administration NOTICES Grants and cooperative agreements; availability, etc.: Nursing Home Diversion Modernization Program, 34690-34691 E7-12276 Agriculture Agriculture Department See Animal and Plant Health Inspection Service See Forest Service See Grain Inspection, Packers and Stockyards Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 34663-34664 E7-12260 E7-12261 Animal Animal and Plant Health Inspection Service RULES Plant-related quarantine, domestic:
Mexican fruit fly, 34595-34596 E7-12231 NOTICES Environmental statements; availability, etc.: Old World climbing fern; biological control agent, 34664-34665 E7-12240 Architectural Architectural and Transportation Barriers Compliance Board PROPOSED RULES Americans with Disabilities Act; implementation: Accessibility guidelines— Emergency transportable housing Federal advisory committee; intent to establish, 34652-34653 E7-12205 Passenger Vessel Emergency Alarms Advisory Committee; intent to establish, 34653-34655 E7-12196 Arts Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Census Census Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 34668-34670 E7-12208 Centers Centers for Disease Control and Prevention NOTICES Agency information collection activities; proposals, submissions, and approvals, 34691-34692 E7-12241 Meetings:
Disease, Disability, and Injury Prevention and Control Special Emphasis Panels, 34692 E7-12222 Coast Guard Coast Guard RULES Ports and waterways safety; regulated navigation areas, safety zones, security zones, etc.: Charles River, Boston, MA, 34610-34612 E7-12137 Lake Tahoe, CA, 34625-34627 E7-12139 Lake Tahoe, CA and NV, 34627-34630 E7-12281 Nahant Bay, MA, 34616-34618 E7-12150 Patapsco River, Northwest and Inner Harbors, Baltimore, MD, 34622-34625 E7-12246 Presque Isle Bay and Lake Erie, Erie, PA, 34614-34616 E7-12141 San Francisco Bay, CA, 34612-34614, 34620-34622 E7-12140 E7-12145 St.
Lawrence River, Alexandria Bay, NY, 34618-34620 E7-12144 NOTICES Meetings: Houston/Galveston Navigation Safety Advisory Committee, 34699 E7-12147 Commerce Commerce Department See Census Bureau See Foreign-Trade Zones Board See International Trade Administration See National Oceanic and Atmospheric Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 34666-34668 E7-12210 E7-12212 E7-12213 E7-12217 Education Education Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 34671 E7-12257 Energy Energy Department See Federal Energy Regulatory Commission See Western Area Power Administration EPA Environmental Protection Agency NOTICES Agency information collection activities; proposals, submissions, and approvals, 34680-34681 E7-12233 Meetings:
Scientific Counselors Board, 34681-34682 E7-12230 Executive Executive Office of the President See Management and Budget Office See Presidential Documents Export Export-Import Bank NOTICES Economic impact policy; finance applications: China; titanium ingot producer, 34682 E7-12236 FAA Federal Aviation Administration PROPOSED RULES Airworthiness directives: Boeing, 34646-34648 E7-12220 Empresa Brasileira de Aeronautica S.A. (EMBRAER), 34648-34650 E7-12224 Airworthiness standards:
Special conditions— Adam Aircraft Model A700 airplane, 34644-34646 E7-12121 NOTICES Aeronautical land-use assurance; waivers: Pueblo Memorial Airport, CO, 34737-34738 07-3071 Airport noise compatibility program: Portland International Airport, OR, 34736-34737 07-3070 Federal Election Federal Election Commission NOTICES Meetings; Sunshine Act, 34682 07-3127 Federal Emergency Federal Emergency Management Agency RULES Flood insurance; communities eligible for sale: Utah and Virginia, 34630-34632 E7-12207 NOTICES Agency information collection activities; proposals, submissions, and approvals, 34699-34700 E7-12200 Disaster and emergency areas:
Alabama, 34700-34701 E7-12195 E7-12201 Connecticut, 34701 E7-12202 Florida, E7-12198 E7-12203 34702-34703 E7-12204 Kansas, 34703 E7-12277 Louisiana, E7-12209 34703-34704 E7-12211 Mississippi, E7-12199 34704-34705 E7-12206 Texas, 34705 E7-12197 Federal Energy Federal Energy Regulatory Commission NOTICES Environmental statements; availability, etc.: Symbiotics, LLC, 34676 E7-12191 Hydroelectric applications, 34676-34678 E7-12188 E7-12189 Meetings: Mojave Pipeline Co.; settlement conference, 34678 E7-12179 Reliability Standard Compliance and Enforcement in Regions with Independent System Operators and Regional Transmission Organizations; technical conference, 34678 E7-12183 Oil pipelines:
Producer Price Index for Finished Goods; annual change, 34678-34679 E7-12192 *Applications, hearings, determinations, etc.:* Black Marlin Pipeline Co., 34671-34672 E7-12177 Cheyenne Plains Gas Pipeline Co., L.L.C., 34672 E7-12190 Columbia Gas Transmission Corp., 34672 E7-12185 Gulf South Pipeline Co., LP, 34672-34673 E7-12182 Natural Gas Pipeline Co. of America, 34673 E7-12187 Navasota Odessa Energy Partners LP et al., 34673-34674 E7-12180 Northern Natural Gas Co., 34674 E7-12181 Tuscarora Gas Transmission Co., 34674 E7-12186 UNS Electric, Inc, 34675 E7-12178 Wyoming Interstate Co., Ltd, 34675-34676 E7-12184 Federal Highway Federal Highway Administration NOTICES Reports and guidance documents; availability, etc.:
Surface Transportation Environment and Planning Cooperative Research Program; implementation strategy, 34738-34739 E7-12127 Federal Reserve Federal Reserve System RULES Availability of funds and collection of checks (Regulation CC): San Francisco Bank head office routing symbols reassigned to Los Angeles branch office, 34596-34597 E7-12194 FTC Federal Trade Commission NOTICES Premerger notification waiting periods; early terminations, 34682-34689 07-3100 Fish Fish and Wildlife Service PROPOSED RULES Endangered and threatened species:
Findings on petitions, etc.— Mountain yellow-legged frog; Sierra Nevada distinct population segment, 34657-34661 E7-12282 NOTICES Comprehensive conservation plans; availability, etc.: Rice Lake and Mille Lacs National Wildlife Refuges, MN, 34711-34712 E7-12228 Meetings: North American Wetlands Conservation Council, 34712 E7-12253 Food Food and Drug Administration RULES Food for human consumption: Current good manufacturing practice— Dietary supplements; manufacturing, packaging, labeling, or holding operations, 34752-34958 07-3039 Dietary supplements and ingredients; 100 percent identity testing exemption, 34959-34969 07-3038 FTZB Foreign-Trade Zones Board NOTICES *Applications, hearings, determinations, etc.:* Kentucky Adidas Sales, Inc.; apparel, footwear, and sporting equipment warehousing and distribution facilities; withdrawn, 34670 E7-12269 Forest Forest Service NOTICES Meetings:
Resource Advisory Committees— Mendocino County, 34665 07-3073 GIPSA Grain Inspection, Packers and Stockyards Administration NOTICES Agency designation actions: Iowa, 34665-34666 E7-12095 Health Health and Human Services Department See Aging Administration See Centers for Disease Control and Prevention See Food and Drug Administration See National Institutes of Health NOTICES Meetings: Human Research Protections Advisory Committee, 34689 E7-12229 Scientific misconduct findings; administrative actions:
Bryant, Joy, 34689 E7-12173 Layman, Diana, 34690 E7-12170 Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency See U.S. Citizenship and Immigration Services See U.S. Customs and Border Protection Information Information Security Oversight Office NOTICES Reports and guidance documents; availability, etc.: Public Interest Declassification Board bylaws, 34727 E7-12247 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See Minerals Management Service See National Park Service IRS Internal Revenue Service RULES Income taxes:
Foreign corporations; gross income exclusions, 34600-34609 E7-12039 PROPOSED RULES Income taxes: Foreign corporations; gross income exclusions; cross-reference; hearing, 34650-34652 E7-12037 International International Trade Administration NOTICES Antidumping: Carbazole violet pigment 23 from— China, 34670-34671 07-3103 Labor Labor Department See Mine Safety and Health Administration Land Land Management Bureau NOTICES Disclaimer of interest applications: Alaska, 34712-34714 E7-12107 E7-12153 Meetings:
Carrizo Plain National Monument Advisory Committee, 34714 E7-12259 Resource Advisory Councils— Central Montana, 34714 E7-12226 Realty actions; sales, leases, etc.: Arizona, 34714-34716 E7-12263 Utah, 34716-34717 E7-12268 Survey plat filings: Virginia, 34717 E7-12062 Management Management and Budget Office NOTICES Reports and guidance documents; availability, etc.: Compliance assistance resources and points of contact available to small businesses; list, 34732-34733 E7-12215 Maritime Maritime Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, E7-12244 34739-34740 E7-12249 Coastwise trade laws; administrative waivers:
HOLY GRAIL, 34740-34741 E7-12248 Deepwater ports; license applications: Port Dolphin Energy LLC, 34741-34742 E7-12243 Minerals Minerals Management Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 34717-34719 E7-12171 Mine Mine Safety and Health Administration RULES Coal mine safety and health: Underground mines— Abandoned areas; sealing, 34609 E7-12242 NASA National Aeronautics and Space Administration NOTICES Meetings: Advisory Council, 34724-34725 E7-12167 National Archives National Archives and Records Administration See Information Security Oversight Office NOTICES Agency records schedules; availability, 34725-34726 E7-12245 National Foundation National Foundation on the Arts and the Humanities NOTICES Meetings:
Humanities Panel, 34727-34728 E7-12250 National Highway National Highway Traffic Safety Administration NOTICES Highway safety programs; breath alcohol testing devices: Model specifications and conforming products list— Calibrating units, 34742-34748 07-3060 NIH National Institutes of Health PROPOSED RULES Grants for research projects: Principal investigator definition and multiple or concurrent awards conditions, 34655-34657 E7-12223 NOTICES Agency information collection activities; proposals, submissions, and approvals, 34692-34693 E7-12175 Inventions, Government-owned; availability for licensing, 34693-34694 E7-12174 Meetings:
National Center on Minority Health and Health Disparities, 34694 07-3080 National Institute of Child Health and Human Development, 34696 07-3082 National Institute of Diabetes and Digestive and Kidney Diseases, 07-3075 34695-34696 07-3081 National Institute of Environmental Health Sciences, 34695 07-3077 National Institute of General Medical Sciences, 34696-34697 07-3083 National Institute of Mental Health, 34695, 34697 07-3074 07-3084 Scientific Review Center, 07-3076 34697-34699 07-3078 07-3079 NOAA National Oceanic and Atmospheric Administration RULES Marine mammals:
Commercial fishing authorizations— Atlantic Large Whale Take Reduction Plan, 34632-34643 E7-12251 PROPOSED RULES Endangered and threatened species: Cook Inlet beluga whale Hearing, 34661-34662 E7-12262 National Park National Park Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 34719-34723 07-3089 07-3094 07-3095 National Register of Historic Places; pending nominations, 34723-34724 E7-12169 Neighborhood Neighborhood Reinvestment Corporation NOTICES Meetings;
Sunshine Act, 34728 07-3105 Nuclear Nuclear Regulatory Commission NOTICES Regulatory agreements: Pennsylvania, 34728-34732 07-3072 Office Office of Management and Budget See Management and Budget Office Personnel Personnel Management Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 34733 E7-12232 Presidential Presidential Documents ADMINISTRATIVE ORDERS Jerusalem Embassy Act; suspension of limitations (Presidential Determination) No. 2007-21 of June 1, 2007, 34975 07-3138 John Warner National Defense Authorization Act for Fiscal Year 2007, assignment of functions (Memorandum of June 12, 2007), 34977 07-3139 West Bank and Gaza; assistance to the Palestinian Authority (Presidential Determination) No. 2007-20 of June 1, 2007, 34971-34974 07-3137 Western Balkans; continuation of national emergency (Notice of June 22, 2007), 34979-34981 07-3143 SEC Securities and Exchange Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 34733-34734 E7-12193 Securities:
Suspension of trading— Shine Holdings, Inc., 34734 07-3113 SBA Small Business Administration RULES Surety Bond Guarantee Program: Preferred Surety Bond surety qualification, increased guarantee for veterans, etc., 34597-34600 07-2983 NOTICES Disaster loan areas: Kansas, 34734 E7-12124 State State Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 34734-34736 E7-12252 E7-12272 Surface Surface Transportation Board NOTICES Rail carriers:
Rail cost adjustment factor; quarterly approval, 34748 E7-12163 Thrift Thrift Supervision Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 34748-34749 E7-12280 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration See Maritime Administration See National Highway Traffic Safety Administration See Surface Transportation Board NOTICES Meetings: RTCA, Inc., 34736 07-3069 Treasury Treasury Department See Internal Revenue Service See Thrift Supervision Office USCIS U.S.
Citizenship and Immigration Services NOTICES Agency information collection activities; proposals, submissions, and approvals, 34705-34706 E7-12255 USCBP U.S. Customs and Border Protection NOTICES Commercial gauger and laboratory accreditations: Approval— Certispec Services USA, Inc., 34706-34707 E7-12258 Chemical & Petrochemical Inspections, LL.P., 34706 E7-12256 Columbia Inspection, 34706 E7-12254 Dixie Services, Inc., 34710 E7-12283 Inspectorate America Corp., 34707-34708 E7-12266 E7-12273 E7-12278 Intertek USA, Inc., 34708-34709 E7-12286 E7-12287 E7-12288 Markan Laboratories, Inc., 34709 E7-12275 Saybolt, Inc., 34707 E7-12264 SGS North America, Inc., 34708 E7-12267 Environmental statements; availability, etc.:
Western Hemisphere Travel Initiative at land and sea ports of entry, 34710-34711 E7-12274 Western Western Area Power Administration NOTICES Power rates: Loveland Area Projects, 34679-34680 E7-12218 Pick-Sloan Missouri Basin Program, 34680 E7-12219 Separate Parts In This Issue Part II Health and Human Services Department, Food and Drug Administration, 34752-34958, 34959-34969 07-3038 07-3039 Part III Executive Office of the President, Presidential Documents, 34971-34977 07-3137 07-3138 07-3139 Part IV Executive Office of the President, Presidential Documents, 34979-34981 07-3143 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. 72 121 Monday, June 25, 2007 Rules and Regulations DEPARTMENT OF AGRICULTURE Animal and Plant Health Inspection Service 7 CFR Part 301 [Docket No. APHIS-2007-0051] Mexican Fruit Fly; Removal of Quarantined Area AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Interim rule and request for comments. SUMMARY: We are amending the Mexican fruit fly regulations by removing a portion of Webb County, TX, from the list of quarantined areas and by removing restrictions on the interstate movement of regulated articles from this area. This action is necessary to relieve restrictions that are no longer needed to prevent the spread of the Mexican fruit fly into noninfested areas of the United States. We have determined that the Mexican fruit fly has been eradicated from this portion of Webb County, TX, and that the quarantine and restrictions are no longer necessary.
DATES: This interim rule was effective June 18, 2007. We will consider all comments that we receive on or before August 24, 2007. ADDRESSES: You may submit comments by either of the following methods: • *Federal eRulemaking Portal:* Go to *http://www.regulations.gov,* select “Animal and Plant Health Inspection Service” from the agency drop-down menu, then click “Submit.” In the Docket ID column, select APHIS-2007-0051 to submit or view public comments and to view supporting and related materials available electronically.
Information on using Regulations.gov, including instructions for accessing documents, submitting comments, and viewing the docket after the close of the comment period, is available through the site's “User Tips” link. • *Postal Mail/Commercial Delivery:* Please send four copies of your comment (an original and three copies) to Docket No. APHIS-2007-0051, Regulatory Analysis and Development, PPD, APHIS, Station 3A-03.8, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please state that your comment refers to Docket No.
APHIS-2007-0051. *Reading Room:* You may read any comments that we receive on this docket in our reading room. The reading room is located in room 1141 of the USDA South Building, 14th Street and Independence Avenue, SW., Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through Friday, except holidays. To be sure someone is there to help you, please call
(202)690-2817 before coming. *Other Information:* Additional information about APHIS and its programs is available on the Internet at *http://www.aphis.usda.gov.* FOR FURTHER INFORMATION CONTACT: Mr. Wayne Burnett, Domestic Coordinator, Fruit Fly Exclusion and Detection, PPQ, APHIS, 4700 River Road Unit 36, Riverdale, MD 20737-1231;
(301)734-4387. SUPPLEMENTARY INFORMATION: Background The Mexican fruit fly ( *Anastrepha ludens* ) is a destructive pest of citrus and many other types of fruit. The short life cycle of the Mexican fruit fly allows rapid development of serious outbreaks that can cause severe economic losses in commercial citrus-producing areas. The Mexican fruit fly regulations, contained in 7 CFR 301.64 through 301.64-10 (referred to below as the regulations), were established to prevent the spread of the Mexican fruit fly to noninfested areas of the United States. The regulations impose restrictions on the interstate movement of regulated articles from quarantined areas. In an interim rule effective and published in the **Federal Register** on May 18, 2007 (72 FR 27949-27951, Docket No. APHIS-2007-0051), we quarantined a portion of Webb County, TX, and restricted the interstate movement of regulated articles from the quarantined area. Based on trapping surveys conducted by inspectors of Texas State and county agencies and by inspectors of the Animal and Plant Health Inspection Service, we have determined that the Mexican fruit fly has been eradicated from the quarantined portion of Webb County. The last finding of Mexican fruit fly in this quarantined area was March 6, 2007. Since then, no evidence of Mexican fruit fly infestation has been found in this area. Based on our experience, we have determined that sufficient time has passed without finding additional flies or other evidence of infestation to conclude that the Mexican fruit fly no longer exists in Webb County, TX. Therefore, we are removing the entry for this county from the list of quarantined areas in § 301.64-3(c). Immediate Action Immediate action is warranted to relieve restrictions that are no longer necessary. A portion of Webb County, TX, was quarantined due to the possibility that the Mexican fruit fly could spread from this area to noninfested areas of the United States. Since we have concluded that the Mexican fruit fly no longer exists in this county, immediate action is warranted to remove the quarantine on Webb County, TX, and to relieve the restrictions on the interstate movement of regulated articles from this area. Under these circumstances, the Administrator has determined that prior notice and opportunity for public comment are contrary to the public interest and that there is good cause under 5 U.S.C. 553 for making this action effective less than 30 days after publication in the **Federal Register** . We will consider comments we receive during the comment period for this interim rule (see DATES above). After the comment period closes, we will publish another document in the **Federal Register** . The document will include a discussion of any comments we receive and any amendments we are making to the rule. Executive Order 12866 and Regulatory Flexibility Act This rule has been reviewed under Executive Order 12866. For this action, the Office of Management and Budget has waived its review under Executive Order 12866. This action amends the Mexican fruit fly regulations by removing a portion of Webb County, TX, from the list of quarantined areas. The Regulatory Flexibility Act requires that agencies consider the economic impact of their rules on small entities. The Small Business Administration
(SBA)has established size standards for determining which economic entities meet the definition of a small firm. The SBA classifies entities that would normally be affected by a quarantine for the Mexican fruit fly, growers of oranges (NAICS category 111310), citrus (except orange) groves (NAICS category 111320), apple orchards (NAICS category 111331), and other non-citrus farming (NAICS category 111339), as small businesses if their annual receipts are $750,000 or less. Any infestation by Mexican fruit fly could result in an increase in producer costs for pesticides and their application and a reduction in production and revenue. However, according to the 2002 Census of Agriculture, there were no commercial farms growing these commodities in Webb County, TX. County records indicate there are approximately 1 airport, 4 bus terminals, 2 cargo freight forwarders, 2 distributors, 1 food bank, 2 nurseries, and 128 fruit sellers within the area that may be affected by this rule. We expect that any small entities located within the area that sell regulated articles do so primarily for local intrastate, not interstate, movement, so the effect, if any, of this rule on these entities appears to be minimal. The effect on any small entities that may move regulated articles interstate has been minimized by the availability of various treatments that, in most cases, allow these small entities to move regulated articles interstate with very little additional cost. Thus, just as the previous interim rule establishing the quarantined area in Webb County, TX, had little effect on the small entities in the area, the lifting of the quarantine in the current interim rule will also have little effect. Under these circumstances, the Administrator of the Animal and Plant Health Inspection Service has determined that this action will not have a significant economic impact on a substantial number of small entities. Executive Order 12372 This program/activity is listed in the Catalog of Federal Domestic Assistance under No. 10.025 and is subject to Executive Order 12372, which requires intergovernmental consultation with State and local officials. (See 7 CFR part 3015, subpart V.) Executive Order 12988 This rule has been reviewed under executive Order 12988, Civil Justice Reform. This rule:
(1)Preempts all State and local laws and regulations that are inconsistent with this rule;
(2)has no retroactive effect; and
(3)does not require administrative proceedings before parties may file suit in court challenging this rule. Paperwork Reduction Act This interim rule contains no information collection or recordkeeping requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ). List of Subjects in 7 CFR Part 301 Agricultural commodities, Plant diseases and pests, Quarantine, Reporting and recordkeeping requirements, Transportation. Accordingly, we are amending 7 CFR part 301 as follows: PART 301—DOMESTIC QUARANTINE NOTICES 1. The authority citation for part 301 continues to read as follows: Authority: 7 U.S.C. 7701-7772 and 7781-7786; 7 CFR 2.22, 2.80, and 371.3. Section 301.75-15 issued under Sec. 204, Title II, Public Law 106-113, 113 Stat. 1501A-293; sections 301.75-15 and 301.75-16 issued under Sec. 203, Title II, Public Law 106-224, 114 Stat. 400 (7 U.S.C. 1421 note). § 301.64-3 [Amended] 2. In § 301.64-3, paragraph
(c)is amended by removing, under the heading “TEXAS”, the entry for Webb County. Done in Washington, DC, this 18th day of June 2007. Kevin Shea, Acting Administrator, Animal and Plant Health Inspection Service. [FR Doc. E7-12231 Filed 6-22-07; 8:45 am] BILLING CODE 3410-34-P FEDERAL RESERVE SYSTEM 12 CFR Part 229 [Regulation CC; Docket No. R-1289] Availability of Funds and Collection of Checks AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule; technical amendment. SUMMARY: The Board of Governors is amending appendix A of Regulation CC to delete the reference to the head office of the Federal Reserve Bank of San Francisco and reassign the Federal Reserve routing symbols currently listed under that office to the Los Angeles branch office of the Federal Reserve Bank of San Francisco. These amendments will ensure that the information in appendix A accurately describes the actual structure of check processing operations within the Federal Reserve System. DATES: The final rule will become effective on August 18, 2007. FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Associate Director (202/452-2660), or Joseph P. Baressi, Financial Services Project Leader (202/452-3959), Division of Reserve Bank Operations and Payment Systems; or Adrianne G. Threatt, Counsel (202/452-3554), Legal Division. For users of Telecommunications Devices for the Deaf
(TDD)only, contact 202/263-4869. SUPPLEMENTARY INFORMATION: Regulation CC establishes the maximum period a depositary bank may wait between receiving a deposit and making the deposited funds available for withdrawal. 1 A depositary bank generally must provide faster availability for funds deposited by a local check than by a nonlocal check. A check drawn on a bank is considered local if it is payable by or at a bank located in the same Federal Reserve check processing region as the depositary bank. A check drawn on a nonbank is considered local if it is payable through a bank located in the same Federal Reserve check processing region as the depositary bank. Checks that do not meet the requirements for local checks are considered nonlocal. 1 For purposes of Regulation CC, the term “bank” refers to any depository institution, including commercial banks, savings institutions, and credit unions. Appendix A to Regulation CC contains a routing number guide that assists banks in identifying local and nonlocal banks and thereby determining the maximum permissible hold periods for most deposited checks. The appendix includes a list of each Federal Reserve check processing office and the first four digits of the routing number, known as the Federal Reserve routing symbol, of each bank that is served by that office for check processing purposes. Banks whose Federal Reserve routing symbols are grouped under the same office are in the same check processing region and thus are local to one another. As explained in the Board's final rule published in the **Federal Register** on May 18, 2007, the Federal Reserve Banks have decided to restructure their check processing services by reducing further the number of locations at which they process checks. 2 The Board issues separate final rules amending appendix A for each phase of the restructuring, and the amendments set forth in this notice are such final rules. 3 2 *See* 72 FR 27951, May 18, 2007. 3 In addition to the general advance notice of future amendments provided by the Board, and the Board's notices of final amendments, the Reserve Banks strive to inform affected depository institutions of the exact date of each office transition at least 120 days in advance. The Reserve Banks' communications to affected depository institutions are available at *http://www.frbservices.org.* As part of the restructuring process, the head office of the Federal Reserve Bank of San Francisco will cease processing checks on August 18, 2007. As of that date, banks with routing symbols currently assigned to the San Francisco head office for check processing purposes will be reassigned to the San Francisco Reserve Bank's Los Angeles branch office. As a result of this change, some checks that are drawn on and deposited at banks located in the affected check processing regions and that currently are nonlocal checks will become local checks subject to faster availability schedules. To assist banks in identifying local and nonlocal banks, the Board accordingly is amending the lists of routing symbols assigned to Twelfth District check processing offices to conform to the transfer of operations from the San Francisco head office to the Los Angeles branch office. To coincide with the effective date of the underlying check processing changes, the amendments are effective August 18, 2007. The Board is providing advance notice of these amendments to give affected banks ample time to make any needed processing changes. The advance notice also will enable affected banks to amend their availability schedules and related disclosures, if necessary, and provide their customers with notice of these changes. 4 The Federal Reserve routing symbols assigned to all other Federal Reserve branches and offices will remain the same at this time. The Board of Governors, however, intends to issue a similar notice at least sixty days prior to the elimination of check processing operations at the Helena branch office of the Federal Reserve Bank of Minneapolis, as described in the May 2007 **Federal Register** document. 4 Section 229.18(e) of Regulation CC requires that banks notify account holders who are consumers within 30 days after implementing a change that improves the availability of funds. Administrative Procedure Act The Board has not followed the provisions of 5 U.S.C. 553(b) relating to notice and public participation in connection with the adoption of this final rule. The revisions to the appendix are technical in nature, and the routing symbol revisions are required by the statutory and regulatory definitions of “check-processing region.” Because there is no substantive change on which to seek public input, the Board has determined that the section 553(b) notice and comment procedures are unnecessary. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3506; 5 CFR part 1320 Appendix A.1), the Board has reviewed the final rule under authority delegated to the Board by the Office of Management and Budget. This technical amendment to appendix A of Regulation CC will delete the reference to the head office of the Federal Reserve Bank of San Francisco and reassign the routing symbols listed under that office to the Los Angeles branch office of the Federal Reserve Bank of San Francisco. The depository institutions that are located in the affected check processing regions and that include the routing numbers in their disclosure statements would be required to notify customers of the resulting change in availability under § 229.18(e). However, because all paperwork collection procedures associated with Regulation CC already are in place, the Board anticipates that no additional burden will be imposed as a result of this rulemaking. List of Subjects in 12 CFR Part 229 Banks, Banking, Reporting and recordkeeping requirements. Authority and Issuance For the reasons set forth in the preamble, the Board is amending 12 CFR part 229 to read as follows: PART 229—AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS (REGULATION CC) 1. The authority citation for part 229 continues to read as follows: Authority: 12 U.S.C. 4001-4010, 12 U.S.C. 5001-5018. 2. The Twelfth District routing symbol list in appendix A is revised to read as follows: Appendix A to PART 229—Routing Number Guide to Next-Day Availability Checks and Local Checks Twelfth Federal Reserve District [Federal Reserve Bank of San Francisco] Los Angeles Branch 1210 3210 1211 3211 1212 3212 1213 3213 1220 3220 1221 3221 1222 3222 1223 3223 1224 3224 Seattle Branch 1230 3230 1231 3231 1232 3232 1233 3233 1250 3250 1251 3251 1252 3252 By order of the Board of Governors of the Federal Reserve System, acting through the Secretary of the Board under delegated authority, June 20, 2007. Jennifer J. Johnson, Secretary of the Board. [FR Doc. E7-12194 Filed 6-22-07; 8:45 am] BILLING CODE 6210-01-P SMALL BUSINESS ADMINISTRATION 13 CFR Part 115 RIN 3245-AF39 Surety Bond Guarantee Program-Preferred Surety Qualification, Increased Guarantee for Veteran and Service-Disabled Veteran-Owned Business, Deadline for Payment of Guarantee Fees, Denial of Liability, and Technical Amendments AGENCY: U.S. Small Business Administration (SBA). ACTION: Final rule. SUMMARY: On September 26, 2006, SBA published a proposed rule in the **Federal Register** addressing six changes to the SBA Surety Bond Guarantee
(SBG)Program in order to improve operation of the SBG program and make it easier for sureties and small business concerns to participate in the program. Specifically, this rules makes the following amendments to the program:
(1)Gives effect to the statutory reduction in the frequency of audits required of Preferred Surety Bond
(PSB)Sureties;
(2)obligates SBA to guarantee 90 percent of the loss incurred by a Prior Approval Surety on bonds issued on behalf of small businesses owned and controlled by veterans, and Service-disabled veterans;
(3)imposes a 60-day deadline for the submission of surety fees to SBA;
(4)allows PSB Sureties to charge premiums in accordance with applicable state ceilings, as presently permitted under the Prior Approval Program;
(5)deletes the existing reference to the expiration of the PSB Program; and
(6)allows Affiliates of a PSB Surety to participate in the Prior Approval Program. DATES: This rule is effective July 25, 2007. FOR FURTHER INFORMATION CONTACT: Frank Lalumiere, Director, Office of Surety Guarantees,
(202)205-6540; *Frank.Lalumiere@sba.gov* . SUPPLEMENTARY INFORMATION: SBA can guarantee bonds for contracts up to $2 million, covering bid, performance and payment bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels. SBA's guarantee gives sureties an incentive to provide bonding for small businesses and thereby strengthens their ability to obtain bonding and greater access to contracting opportunities. Section 411(g)(3) of the Small Business Investment Act of 1958 (the Act) formerly required PSB Sureties to be audited every year. 15 U.S.C. 694b(g)(3). As amended by Public Law 108-447, Div. K. Section 203, the Small Business Reauthorization and Manufacturing Assistance Act of 2004, the Act now requires audits to be made at least once every 3 years. This final rule implements this statutory requirement. In relevant part, Section 4(b)(1) of the Small Business Act provides that SBA “shall give special consideration to veterans of the Armed Forces of the United States and their survivors and dependents.” 15 U.S.C. 633(b)(1). This final rule encourages the issuance of bonds on behalf of small business concerns owned and controlled by veterans and Service-disabled veterans, by guaranteeing to pay 90 percent of a Prior Approval Program Surety's loss. This guaranty affords such concerns more opportunity to obtain contracts generally. Section 411(h) of the Small Business Investment Act mandates the operation of the program “on a prudent and economically justifiable basis” and authorizes SBA to impose fees on both small business concerns and sureties, “to be payable at such time as may be determined by [SBA].” Accordingly, this final rule establishes a clear deadline for a Prior Approval Surety's payment of the guarantee fees owed to SBA in order to maintain SBA's guarantee. The final rule also allows PSB Program Sureties to charge no more than the premium rates permitted under applicable State law, as Prior Approval Sureties are already allowed. The initial regulations for the PSB program specified that the premium rates charged by PSB Sureties could not exceed the Surety Association of America's advisory premium rates in effect on August 1, 1987. SAA discontinued its rate setting function shortly after promulgating the 1987 rates, and participating surety companies have been obligated to use the 1987 SAA rates for the past 18 years despite economic and market place changes. This change puts the Preferred and Prior Approval Programs on the same footing by relying on the individual State oversight bodies for setting fee rates. From its creation in 1988 until 2004, the PSB program was a pilot program, subject to automatic termination in the absence of affirmative Congressional action. Now that the PSB program has been made permanent, the present regulation that speaks of the termination of the program has been removed. Finally, pursuant to this rule Affiliates of PSB Sureties are no longer barred from participation in the Prior Approval program. The term “Affiliate” is defined in 13 CFR part 121, but in the context of the present discussion it means a relationship in which one Surety owns or otherwise controls another Surety, or in which two or more Sureties are commonly owned by, or under common control with, a third party. A series of mergers and acquisitions in the surety industry in recent years had caused Sureties previously eligible to participate in the Prior Approval Program to become Affiliates of PSB Sureties and lose their eligibility. This final amendment should encourage increased participation in the Prior Approval Program by otherwise qualified Sureties that are Affiliates of PSB Sureties. Discussion of Public Comments SBA received five public comments on the proposed rule, three from associations and two from individual surety companies. Each commenter supported the proposed changes, with two exceptions. Four commenters recommended removal of the proposed language in § 115.19, Denial of Liability, that would allow SBA to deny bond liability as a result of the failure of a surety company to pay the required surety fee. In general, the commenters stated that such a requirement would weaken the SBA/Surety Industry partnership that is designed to assist small businesses. While SBA values its partners in the surety industry, the Agency has a fiduciary responsibility to ensure timely payment of guaranty fees in order to honor its guaranty. Accordingly, the language in the proposed rule regarding the denial of bond liability if the surety fee is not paid within 60 days is retained. The proposed rule also included a provision that the guaranty can be reinstated if a valid reason for the delinquent payment of guaranty fee is provided and the contract is not in default. This language is also retained in the final rule. Three commenters expressed concern with the proposed 45 days fee payment requirement. One commenter requested clarification of when the 45-day period begins. A few commenters said it would be difficult to remit payment within 45 days, in part because many sureties do not receive payment on the final bond premium until 45 days after the bond is issued, and to require payment before collection on the premium is unduly punitive. In consideration of these comments, in this final rule, SBA has amended the proposed rule. First, the proposed 45-day period cited in § 115.32 is increased to 60 days. SBA believes that the additional 15 days will provide time for a surety company agent to provide the surety company with sufficient information for the surety company to make payment. Second, the same section is also revised to specify that payment is required within 60 days following SBA approval of the Prior Approval Payment or Performance Bond on the SBA Form 990, Guarantee Agreement. One commenter also suggested that the agency should extend the 10-day deadline for PSB sureties to submit the executed bond to SBA to a 15-day deadline. SBA did not propose to amend this particular requirement, and it will be considered among other changes in a future amendment. Compliance With Executive Orders 12866, 12988, and 13132, the Paperwork Reduction Act (44 U.S.C. Ch. 35), and the Regulatory Flexibility Act (5 U.S.C. 601-612) Compliance With Executive Order 12866 The Office of Management and Budget
(OMB)has determined that this rule constitutes a significant regulatory action for purposes of Executive Order 12866, thereby necessitating a regulatory impact analysis. SBA published this analysis in the Proposed Rule. The agency did not receive any comments addressing the analysis and is not aware of any additional information that would require revision of its initial conclusions. Compliance With Executive Order 12988 This action meets applicable standards set forth in Sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. The action does not have retroactive or preemptive effect. Compliance With Executive Order 13132 For purpose of E.O. 13132, the SBA has determined that the rule will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, for the purpose of Executive Order 13132, SBA determines that this final rule has no federalism implications warranting preparation of a federalism assessment. Compliance With Paperwork Reduction Act, 44 U.S.C. Ch. 35 SBA has determined that this final rule does not impose additional reporting or recordkeeping requirements under the Paperwork Reduction Act, 44 U.S.C., Chapter 35. Compliance With the Regulatory Flexibility Act, 5 U.S.C. 601-612 The Regulatory Flexibility Act (RFA), 5 U.S.C. 601, requires administrative agencies to consider the effect of their actions on small entities, small non-profit enterprises, and small local governments. Pursuant to the RFA, when an agency issues a rulemaking, the agency must prepare a regulatory flexibility analysis which describes the impact of the rule on small entities. However, Section 605 of the RFA allows an agency to certify a rule, in lieu of preparing an analysis, if the rulemaking is not expected to have a significant economic impact on a substantial number of small entities. Within the meaning of RFA, SBA certifies that this rule will not have a significant economic impact on a substantial number of small entities. Consequently, this rule doe not meet the substantial number of small businesses criterion anticipated by the Regulatory Flexibility Act. There are about a dozen Sureties that participate in the SBA program, and this rule does not impose any additional cost or any significant burden on them. Allowing PSB Sureties to charge the highest premium rates permitted by applicable State law raises the possibility of an economic impact on those contractors that now receive their bonding from PSB Sureties, but out of 843 contractors participating in the SBA program in FY2005, about 143 were bonded by PSB Sureties. Prior Approval Sureties are already allowed to charge the premium rates permitted by the individual State law, so the economic effect, if any, of this final rule would be to subject approximately 17 percent of the contractors in the SBA program to the risk that they might have to pay the same premium rates that their fellow participating contractors must pay. No public comments were received in response to the RFA analysis provided in the proposed rule. List of Subjects in 13 CFR Part 115 Claims, Reporting and recordkeeping requirements, Small businesses, Surety bonds. For the reasons stated in the preamble, the Small Business Administration amends 13 CFR part 115 as follows: PART 115—SURETY BOND GUARANTEE 1. The authority citation for part 115 is revised to read as follows: Authority: 5 U.S.C. app. 3; 15 U.S.C. 687b, 687c, 694a, 694b note, Pub. L. 106-554; Pub. L. 108-447, Div K, § 203. 2. Amend § 115.10 by adding the following definitions in alphabetical order. § 115.10 Definitions. *Service-Disabled Veteran* means a veteran with a disability that is service-connected, as defined in Section 101(16) of Title 38, United States Code. *Small Business Owned and Controlled by Service-Disabled Veterans* means:
(1)A Small Concern of which not less than 51 percent is owned by one or more Service-Disabled Veterans; or a publicly-owned Small concern of which not less than 51 percent of the stock is owned by one or more Service-Disabled Veterans; and
(2)The management and daily business operations of which are controlled by one or more Service-Disabled Veterans, or in the case of a Service-Disabled Veteran with permanent and severe disability, the spouse or permanent caregiver of such Veteran. *Small Business Owned and Controlled by Veterans* means:
(1)A Small Concern of which not less than 51 percent is owned by one or more Veterans; or a publicly-owned Small Concern of which not less than 51 percent of the stock is owned by one or more Veterans; and
(2)The management and daily business operations of which are controlled by one or more Veterans. *Veteran* has the meaning given the term in Section 101(2) of Title 38, United States Code. 3. Revise § 115.19(g) to read as follows: § 115.19 Denial of liability.
(g)Delinquent fees. The Surety has not remitted to SBA the Principal's payment for the full amount of the guarantee fee within the time period required under § 115.30(d) for Prior Approval Sureties or § 115.66 for PSB Sureties, or has not made timely payment of the Surety's fee within the time period required by § 115.32(c). SBA may reinstate the guarantee upon showing that the contract is not in default and that a valid reason exists why a timely remittance or payment was not made. 4. Revise § 115.21(a)(2) to read as follows: § 115.21 Audits and investigations.
(a)* * *
(1)* * *
(2)*Frequency of PSB Audits.* Each PSB Surety is subject to an audit at least once every 3 years by examiners selected and approved by SBA. 5. Revise § 115.31(a)(2) to read as follows: § 115.31 Guarantee percentage.
(a)* * *
(1)* * *
(2)The bond was issued on behalf of a small business owned and controlled by socially and economically disadvantaged individuals, on behalf of a qualified HUBZone small business concern, or on behalf of a small business owned and controlled by veterans or a small business owned and controlled by Service-disabled veterans. 6. Revise § 115.32
(c)and (d)(2) to read as follows: § 115.32 Fees and premiums.
(c)*SBA charge to Surety.* SBA does not charge Sureties application or Bid Bond guarantee fees. Subject to § 115.18(a)(4), the Surety must pay SBA a guarantee fee on each guaranteed bond (other than a Bid Bond) within 60 calendar days after SBA's approval of the Prior Approval Payment or Performance Bond on the SBA Form 990, Guarantee Agreement. The fee is a certain percentage of the bond premium determined by SBA and published in Notices in the **Federal Register** from time to time. The fee is rounded to the nearest dollar. SBA does not receive any portion of a Surety's non-premium charges. See paragraph
(d)of this section for additional requirements when the Contract or bond amount changes.
(d)* * *
(1)* * *
(2)*Increases; fees.* Notification of increases in the Contract or bond amount under this paragraph
(d)must be accompanied by the Principal's check for the increase in the Principal's guarantee fee computed on the increase in the Contract amount. If the increase in the Principal's fee is less than $40, no payment is due until the total amount of increases in the Principal's fee equals or exceeds $40. The Surety's check for payment of the increase in the Surety's guarantee fee, computed on the increase in the bond Premium, must be submitted to SBA within 60 calendar days of SBA's approval of the supplemental Prior Approval Agreement, unless the amount of such increased guarantee fee is less than $40. When the total amount of increase in the guarantee fee equals or exceeds $40, the Surety's check must be submitted to SBA within 60 calendar days. 7. Revise § 115.60(a)(2) to read as follows: § 115.60 Selection and admission of PSB Sureties.
(a)* * *
(1)* * *
(2)An agreement that the Surety will neither charge a bond premium in excess of that authorized by the appropriate State insurance department, nor impose any non-premium fee unless such fee is permitted by applicable State law and approved by SBA. § 115.61 [Removed & Reserved] 8. Remove and reserve § 115.61. 9. Revise § 115.62 to read as follows: § 115.62 Prohibition on participation in Prior Approval program. A PSB Surety is not eligible to submit applications under subpart B of this part. This prohibition does not extend to an Affiliate, as defined in 13 CFR § 121.103, of a PSB Surety that is not itself a PSB Surety provided that the relationship between the PSB Surety and the Affiliate has been fully disclosed to SBA and that such Affiliate has been approved by SBA to participate as a Prior Approval Surety pursuant to § 115.11. Steven C. Preston, *Administrator.* [FR Doc. 07-2983 Filed 6-22-07; 8:45 am]
Connectionstraces to 13
17 references not yet in our index
  • 7 CFR 301
  • 7 CFR 301.64
  • 7 CFR 3015
  • 7 USC 7701-7772
  • 7 CFR 2.22
  • Pub. L. 106-113
  • Pub. L. 106-224
  • 114 Stat. 400
  • 12 CFR 229
  • 5 CFR 1320
  • 12 USC 4001-4010
  • 12 USC 5001-5018
  • 13 CFR 115
  • Pub. L. 108-447
  • 13 CFR 121
  • 5 USC 601-612
  • Pub. L. 106-554
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