Notices. Notice
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/register/2008/03/25/08-1075A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
BILLING CODE 7590-01-P OFFICE OF PERSONNEL MANAGEMENT Proposed Collection; Comment Request for Review of a Revised Information Collection: RI 38-31 AGENCY: Office of Personnel Management. ACTION: Notice. SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (Public Law 104-13, May 22, 1995), this notice announces that the Office of Personnel Management
(OPM)has submitted to the Office of Management and Budget
(OMB)a request for review of a revised information collection. RI 38-31, Request for Information About Your Missing Payment, is sent in response to a notification by an individual of the loss or non-receipt of a payment from the Civil Service Retirement and Disability Fund. This form requests the information needed to enable OPM to trace and/or reissue payment. Missing payments may also be reported to OPM. Approximately 8,000 reports of missing payments are processed each year. Of these, we estimate that 7,800 are reports of missing checks. Approximately 200 reports of missing checks are reported using RI 38-31 and 7,600 are reported by telephone. A response time of ten minutes per form reporting a missing check is estimated; the same amount of time is needed to report the missing checks or electronic funds transfer
(EFT)payments using the telephone. The annual burden for reporting missing checks is 1,300 hours. The remaining 200 reports relate to EFT payments. No missing EFT payments are reported using RI 38-31. The annual burden for reporting missing EFT payments is 33 hours. The total burden is 1,333 hours. For copies of this proposal, contact Mary Beth Smith-Toomey on
(202)606-8358, Fax
(202)418-3251 or via e-mail to *MaryBeth.Smith-Toomey@opm.gov* . Please include a mailing address with your request. DATES: Comments on this proposal should be received within 30 calendar days from the date of this publication. ADDRESSES: Send or deliver comments to Ronald W. Melton, Deputy Assistant Director, Retirement Services Program, Center for Retirement and Insurance Services, U.S. Office of Personnel Management, 1900 F Street, NW., Room 3305, Washington, DC 20415-3500, and Brenda Aguilar, OPM Desk Officer, Office of Information & Regulatory Affairs, Office of Management and Budget, New Executive Office Building, NW., Room 10235, Washington, DC 20503. For information regarding administrative coordination—contact: Cyrus S. Benson, Team Leader, Publications Team, RIS Support Services/Support Group,
(202)606-0623. U.S. Office of Personnel Management. Howard Weizmann, Deputy Director. [FR Doc. E8-5876 Filed 3-24-08; 8:45 am] BILLING CODE 6325-38-M SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270-406; OMB Control No. 3235-0463] Extension; Comment Request; “Tell Us How We're Doing!” Upon written request, copies available from: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549-0213. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ), the Securities and Exchange Commission (“Commission”) is soliciting comments on the collection of information summarized below. The Commission plans to submit this previously-approved questionnaire to the Office of Management and Budget for approval. The Commission currently sends the questionnaire to persons who have used the services of the Commission's Office of Investor Education and Advocacy. The questionnaire consists mainly of eight
(8)questions concerning the quality of services provided by OIEA. Most of the questions can be answered by checking a box on the questionnaire. The Commission needs the information to evaluate the quality of services provided by OIEA. Supervisory personnel of OIEA use the information collected in assessing staff performance and for determining what improvements or changes should be made in OIEA operations for services provided to investors. The respondents to the questionnaire are those investors who request assistance or information from OIEA. The total reporting burden of the questionnaire in 2004 was approximately 5 hours and 45 minutes. This was calculated by multiplying the total number of investors who responded to the questionnaire times how long it is estimated to take to complete the questionnaire (23 respondents x 15 minutes = 5 hours and 45 minutes). Written comments are invited on:
(a)Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;
(b)the accuracy of the agency's estimate of the burden of the collection of information;
(c)ways to enhance the quality, utility, and clarity of the information collected; and
(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. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Please direct your written comments to R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312; or send an e-mail to: *PRA_Mailbox@sec.gov* . Dated: March 17, 2008. Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5920 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Rel. No. IC-28197; File No. 812-13445] American Family Life Insurance Company, et al. March 19, 2008. AGENCY: U.S. Securities and Exchange Commission (“Commission”). ACTION: Notice of application for an order under Section 26(c) of the Investment Company Act of 1940, as amended (the “Act”). Applicants: American Family Life Insurance Company (the “Company”), American Family Variable Account I (the “Life Account”), and American Family Variable Account II (the “Annuity Account,” and together with the Company and Life Account, the “Applicants”). Summary of Application: Applicants request an order of the Commission, pursuant to Section 26(c) of the Act, approving the substitution of
(1)Service Class Shares of the Fidelity Variable Insurance Products Investment Grade Bond Portfolio (“Replacement Portfolio A”) of the Fidelity Variable Insurance Products Fund V (“Fidelity Fund”) for shares of the Federated Quality Bond Fund II (“Replaced Portfolio A”) of the Federated Insurance Series (“Federated Fund”) and
(2)shares of the Vanguard International Portfolio (“Replacement Portfolio B”) of the Vanguard Variable Insurance Fund (“Vanguard Fund”) for shares of the Federated International Equity Fund II (“Replaced Portfolio B”) of the Federated Fund, currently held by the Life Account and the Annuity Account (each an “Account,” together, the “Accounts”) to support variable life insurance and annuity contracts issued by the Company (collectively, the “Contracts”). Filing Date: The application was filed on November 2, 2007 and amended and restated on March 14, 2008. Hearing or Notification of Hearing: An order granting the application will be issued unless the Commission orders a hearing. Interested persons may request a hearing by writing to the Secretary of the Commission and serving Applicants with a copy of the request, personally or by mail. Hearing requests must be received by the Commission by 5:30 p.m. on April 15, 2008, and should be accompanied by proof of service on Applicants in the form of an affidavit or, for lawyers, a certificate of service. Hearing requests should state the nature of the requester's interest, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by writing to the Secretary of the Commission. ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. Applicants, c/o James F. Eldridge, Esq., American Family Life Insurance Company, 6000 American Parkway, Madison, Wisconsin 53783-0001. Copy to Thomas E. Bisset, Esq., Sutherland Asbill & Brennan LLP, 1275 Pennsylvania Ave., NW., Washington, DC 20004-2415. FOR FURTHER INFORMATION CONTACT: Michael Kosoff, Staff Attorney, at
(202)551-6754 or Harry Eisenstein, Branch Chief, Office of Insurance Products, Division of Investment Management, at
(202)551-6795. SUPPLEMENTARY INFORMATION: The following is a summary of the application. The complete application may be obtained for a fee from the Public Reference Branch of the Commission, 100 F Street, NE., Washington, DC 20549 (202-551-8090). Applicants' Representations 1. The Company is a stock life insurance company organized under Wisconsin law in 1957. The company is a wholly-owned subsidiary of AmFam, Inc. AmFam, Inc. is a downstream holding company and a wholly-owned subsidiary of American Family Mutual Insurance Company (“American Family Mutual”). American Family Mutual is one of the leading property/casualty insurance companies in the United States with operations in eighteen states. As of December 31, 2006, the Company had assets in excess of $4.2 billion. 2. The Company conducts a conventional life insurance business and is authorized to transact the business of life insurance, including annuities, in eighteen states. For purposes of the Act, the Company is the depositor and sponsor of each of the Accounts as those terms have been interpreted by the Commission with respect to variable life insurance and variable annuity separate accounts. 3. Under the insurance law of Wisconsin, the assets of each Account attributable to the Contracts issued through that Account are owned by the Company, but are held separately from the other assets of the Company for the benefit of the owners of, and the persons entitled to payment under, those Contracts. Each Account is registered with the Commission as a unit investment trust. Each Account is comprised of a number of subaccounts and each subaccount invests exclusively in one of the insurance dedicated mutual fund portfolios made available as investment vehicles underlying the Contracts. Currently, Replaced Portfolio A and Replaced Portfolio B are each available as an investment option under the Company's variable life insurance and variable annuity contracts. 4. The Life Account is currently divided into nine subaccounts. The assets of the Life Account support variable life insurance contracts and interests in the Account offered through such contracts have been registered under the Securities Act of 1933, as amended (the “1933 Act”), on Form N-6 (File No. 333-44956). 5. The Annuity Account is currently divided into nine subaccounts. The assets of the Annuity Account support variable annuity contracts and interests in the Account offered through such contracts have been registered under the 1933 Act on Form N-4 (File No. 333-45592). 6. The Federated Fund is registered as an open-end management investment company under the Act (File No. 811-08042) and currently offers twelve
(12)separate investment portfolios (each, a “Portfolio”), two of which would be involved in the proposed substitution. The Federated Fund issues a separate series of shares of beneficial interest in connection with each Portfolio and has registered those shares under the 1933 Act on Form N-1A (File No. 33-69268). 7. Federated Investment Management Company (“FIMC”) serves as the investment advisor for Replaced Portfolio A. The advisor manages the Fund's assets, including buying and selling portfolio securities. Federated Advisory Services Company (“FASC”), an affiliate of the advisor, provides certain support services to the advisor. The fee for FASC's services is paid by FIMC and not by the Fund. 8. Federated Global Investment Management Corp. (“FGIMC”) serves as the investment advisor for Replaced Portfolio B. The advisor manages the Fund's assets, including buying and selling portfolio securities. FASC provides research, quantitative analysis, equity trading and transaction settlement and certain support services to the advisor. The fee for FASC's services is paid by FGIMC and not by the Fund. 9. Neither the Federated Fund, any of its portfolios, FGIMC, FIMC, nor FASC is affiliated with the Applicants. Neither Replaced Portfolio A nor Replaced Portfolio B has exemptive relief from Section 15(a) of the Act and Rule 18f-2 under the Act to permit the hiring of sub-advisors and the revision of sub-advisory agreements without obtaining a shareholder vote (“manager-of-manager relief”). 10. The Fidelity Fund is registered as an open-end management investment company under the Act (File No. 811-05361) and currently offers twenty-three
(23)investment portfolios, including Replacement Portfolio A. The Fidelity Fund issues a series of shares of beneficial interest in connection with each portfolio and has registered such shares under the 1933 Act on Form N-1A (File No. 033-17704). 11. Each portfolio of the Fidelity Fund has entered into an advisory agreement with Fidelity Management and Research Company (“FMR”) under which FMR acts as investment advisor for the portfolio. Under each investment advisory agreement, FMR has overall responsibility for the selection of investments in accordance with the investment objective, policies, and limitations of the portfolio and for handling the portfolio's business affairs. FMR, at its own expense, provides or arranges for the provision of substantially all management and administrative services required by each portfolio. Each portfolio of the Fidelity Fund does, however, pay its own auditor's fees, compensation to (and expenses of) trustees who are not interested persons, independent counsel fees, custodian fees and extraordinary expenses. 12. Fidelity Investments Money Management, Inc. (“FIMM”), an investment advisor affiliate of FMR, has entered into a sub-advisory agreement with FMR under which FIMM acts as sub-advisor for the Fidelity Fund, including Replacement Portfolio A. FIMM has day-to-day responsibility for choosing investments for Replacement Portfolio A. FMR pays FIMM for providing sub-advisory services. As of March 29, 2007, FMR and FIMM had over $1.6 billion and $370 billion in assets under management, respectively. 13. Fidelity Research & Analysis Company (“FRAC”), an affiliate of FMR, also serves as sub-advisor for the Fidelity Fund and may provide investment research and advice for the Fidelity Fund, including Replacement Portfolio A. 14. Fidelity International Investment Advisors (“FIIA”) and Fidelity International Investment Advisors (U.K.) Limited (“FIIA(U.K.)”) investment advisor affiliates of FMR, assist FMR with the investment and reinvestment of assets in Replacement Portfolio A in foreign investments. FIIA and FIAA(U.K.) have each entered into a sub-advisory agreement with FMR and each acts as sub-advisor to Replacement Fund A. Under the sub-advisory agreements, FMR may receive from FIIA and FIAA(U.K.) investment research and advice on issuers based outside the United States and, in particular, makes minimal credit risk and comparable quality determinations for foreign issuers that issue U.S. dollar-denominated securities. FMR or FIMM pays FIIA for providing sub-advisory services. In turn, FIIA pays FIIA(U.K.) for providing sub-advisory services. 15. Neither the Fidelity Fund, any of its portfolios, FMR, FIMM, FRAC, FIIA nor FIAA(U.K.) is affiliated with the Applicants. The Fidelity Fund does not have manager-of-managers relief. 16. The Vanguard Variable Insurance Fund is registered as an open-end management investment company under the Act (File No. 811-05962) and currently offers fifteen
(15)portfolios. The Vanguard Fund issues a series of shares of beneficial interest in connection with each portfolio and has registered such shares under the 1933 Act on Form N-1A (File No. 33-32216). 17. The Vanguard Fund uses a multi-manager approach to investing the assets of Replacement Portfolio B, and has entered into investment advisory agreements with Baillie Gifford Overseas Ltd. (“Baillie Gifford”) and Schroder Investment Management North America Inc. (“Schroders”). The board of trustees of the Vanguard Fund designates the proportion of Replacement Portfolio B assets to be managed by each advisor, and may change those proportions at any time. Under the supervision and oversight of the trustees and officers of the Vanguard Fund, each advisor independently selects and maintains a portfolio of common stocks for its assigned portion of the assets of Replacement Portfolio B. The Fund pays each advisor a fee at the end of each quarter. 18. Baillie Gifford—located at Carlton Square, 1 Greenside Row, Edinburgh, EH1 3AN, Scotland—is wholly-owned by Baillie Gifford & Co., one of the largest independently owned investment management firms in the United Kingdom. As of December 31, 2006, Baillie Gifford & Co. had assets under management that totaled approximately $95 billion. 19. Schroders has entered into a sub-advisory agreement with its affiliate, Schroder Investment Management North America Limited (“Schroder Limited”), pursuant to which Schroder Limited has primary responsibility for choosing investments for Schroder's assigned portion of the Replacement Portfolio B assets. Schroders pays Schroder Limited a portion of the management fees payable to Schroders under the management agreement between Schroders and the Vanguard Fund. Both Schroders and Schroder Limited are wholly-owned subsidiaries of Schroders plc, the ultimate parent of a large world-wide group of financial service companies. As of September 30, 2006, Schroders, together with its affiliated companies, managed approximately $229.4 billion in assets. 20. Neither the Vanguard Fund or any of its portfolios, Baillie Gifford, or Schroders is affiliated with the Applicants. The Vanguard Fund has manager-of-manager relief. 1 1 Vanguard Convertible Securities Fund, *et al.* , Inv. Co. Act Rel. No. 26089 (June 25, 2003 (Order), File No. 812-12380. 21. The Contracts are flexible premium variable annuity and variable life insurance contracts. The variable annuity Contracts provide for the accumulation of values on a variable basis, fixed basis, or both, during the accumulation period, and provide settlement or annuity payment options on a fixed basis. The variable life insurance Contracts provide for the accumulation of values on a variable basis, fixed basis, or both, throughout the insured's life, and for a substantial death benefit upon the death of the insured. Under each of the Contracts, the Company reserves the right to substitute shares of one Fund for shares of another, or of another investment portfolio, including a portfolio of a different management company. 22. The Company proposes to substitute Service Class shares of Replacement Portfolio A for shares of Replaced Portfolio A, and to substitute shares of Replacement Portfolio B for shares of Replaced Portfolio B held in the Accounts (the “proposed substitutions”). 23. The proposed substitutions are part of an effort by the Company to provide a portfolio selection within the Contracts that:
(1)Provides a more competitive fee structure relative to other funds in the asset class peer group;
(2)provides more competitive long-term returns relative to other funds in the asset class peer group; and
(3)maintains the goal of offering a mix of investment options covering basic categories in the risk/return spectrum. 24. The following charts set out the investment objectives, principal investment strategies, and principal investment risks of each Replaced and Replacement Portfolio, as stated in their respective prospectuses. Replaced Portfolio A Replacement Portfolio A Federated Quality Bond Fund II Fidelity VIP Investment Grade Bond Portfolio Investment Objective Investment Objective Current income High current income consistent with preservation of capital. Principal Investment Strategies Principal Investment Strategies The fund invests in a diversified portfolio of investment-grade, fixed-income securities, consisting primarily of corporate debt securities, U.S. government and privately issued mortgage-backed securities, and U.S. Treasury and agency securities. The investment advisor seeks to enhance the fund's performance by allocating relatively more of its portfolio to the security type that the advisor expects to offer the best balance between current income and risk. Some of the corporate debt securities in which the fund invests are considered to be “foreign securities.” The fund may invest in derivative contracts to implement its investment strategies. FMR normally invests at least 80% of the fund's assets in investment-grade debt securities (those of high and medium quality) of all types and repurchase agreements for those securities. FMR manages the fund to have an overall interest rate risk similar to the Lehman Brothers Aggregate Bond Index. The investment advisor allocates assets across different market sectors and maturities and invests in domestic and foreign issuers. FMR analyzes the credit quality of the issuer, security-specific features, current and potential future valuation, and trading opportunities to select investments for the fund. Although the value of the Fund's shares will fluctuate, the investment advisor seeks to manage the magnitude of the fluctuation by limiting, under normal market conditions, the Fund's dollar-weighted average maturity to between three and ten years and dollar-weighted average duration to between three and seven years. The fund may invest in lower-quality debt securities, sometimes referred to as “junk bond securities,” and in Fidelity's central funds. The fund may engage in transactions that have a leveraging effect. Principal Investment Risks Principal Investment Risks Interest Rate Risk. Prices of fixed-income securities generally fall when interest rates rise. Interest rate changes have a greater effect on the price of fixed-income securities with longer durations. Credit Risk. Issuers of securities in which the fund may invest may default in the payment of interest or principal on securities when due. Call and Prepayment Risk. An issuer of a security held by the fund may redeem the security prior to maturity at a price below its current market value. Risks of Foreign Investing. Share price may be more affected by foreign economic and political conditions, taxation policies and accounting standards than would otherwise be the case. Liquidity Risk. Fixed-income securities may be less readily marketable and subject to greater fluctuation in price than other securities. Also, the fund may not be able to sell a security or close out a derivative contract when desired. Interest Rate Changes. Interest rate increases can cause the price of a debt security to decrease. Foreign Exposure. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments, and can perform differently than the U.S. market. Prepayment. The ability of an issuer of a debt security to repay principal prior to a security's maturity can cause greater price volatility if interest rates change. Issuer-Specific Changes. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. Lower-quality debt securities (those of less than investment-grade quality) involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt securities can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic developments. Leverage Risk. Leverage can increase market exposure and magnify investment risks. Replaced Portfolio B Replacement Portfolio B Federated International Equity Fund II Vanguard International Portfolio Investment Objective Investment Objective Total return on assets by investing primarily in equity securities of companies based outside the United States. Total return will consist of two components:
(1)changes in the market value of portfolio securities (both realized and unrealized appreciation); and
(2)income received from portfolio securities. Changes in market value are expected to comprise the largest component of total return. Long-term capital appreciation. Principal Investment Strategies Principal Investment Strategies The investment advisor uses a “bottom-up” approach to stock selection and selection of industry and country are secondary considerations. The fund is not limited to investing according to any particular style or size of company, or to maintaining minimum allocations to any particular region or country. However, the investment advisor anticipates that normally the fund will primarily invest in mid-to large-capitalization companies based outside the United States that have been selected using a growth style of stock selection. The fund may invest up to 20% of its assets in foreign companies based in emerging markets. The portfolio invests predominantly in the stocks of companies located outside the United States. In selecting stocks, the portfolio's investment advisors evaluate foreign markets around the world and choose companies with above-average growth potential. The portfolio uses multiple investment advisors. Principal Investment Risks Stock Market Risks. The value of equity securities in the fund's portfolio will fluctuate and, as a result, the fund's share price may decline suddenly or over a sustained period of time. Risks of Foreign Investing. Share price may be more affected by foreign economic and political conditions, taxation policies, and accounting and auditing standards than would otherwise be the case. Currency Risks. Because the exchange rates for currencies fluctuate daily, prices of the foreign market securities in which the fund invests are more volatile than prices of securities traded exclusively in the United States. Emerging Market Risks. Securities issued or traded in emerging markets generally entail greater risks than securities issued or traded in developed markets. Emerging market countries may have relatively unstable governments and may present the risk of nationalization of businesses, expropriation, confiscatory taxation or, in certain instances, reversion to closed market, centrally planned economies. Liquidity Risks. Trading opportunities are more limited for equity securities that are not widely held. This may make it more difficult to sell or buy a security at a favorable price or time. Consequently, the fund may have to accept a lower price to sell a security, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative effect on the fund's performance. Principal Investment Risks Stock Market Risk. Stock market risk is the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. In addition, investments in foreign stock markets can be riskier than U.S. stock investments. The prices of foreign stocks and the prices of U.S. stocks have, at times, moved in opposite directions. Investment Style Risk. Investment style risk is the chance that returns from non-U.S. growth stocks, and, to the extent that the portfolio is invested in them, small- and mid-capitalizations stocks, will trail returns from the overall domestic stock market. Historically, small- and mid-cap stocks have been more volatile in price than large-cap stocks that dominate the market, and they often perform quite differently. Country Risk/Regional Risk. Country risk/regional risk is the chance that domestic events—such as political upheaval, financial troubles, or natural disasters—will weaken a country's or region's securities markets. Because the portfolio may invest a large portion of its assets in securities of companies located in any one country or region, its performance may be hurt disproportionately by the poor performance of investments in that area. Country/regional risk is especially high in emerging markets. Currency Risk. Currency risk is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates. Manager Risk. Manager risk is the chance that poor security selection will cause the portfolio to underperform relevant benchmarks or other funds with a similar investment objective. 25. The following charts compare advisory fees, other expenses, total operating expenses (before and after any waivers and reimbursements), and portfolio turnover rates for the year ended December 31, 2006, expressed as an annual percentage of average daily net assets, of the Replaced and Replacement Portfolios. Although Replacement Portfolio A is subject to a distribution (12b-1) fee of the Act, and none currently applies to Replaced Portfolio A, the net operating expenses for Replacement Portfolio A are still significantly less than the total operating expenses for Replaced Portfolio A. 2 Neither the Replaced Portfolios nor the Replacement Portfolios impose a redemption fee. 2 With regard to the Replaced Portfolios, the investment adviser for each Portfolio has entered into an agreement with the Company for the payment of a fee equal to an annual percentage of the assets of the Replaced Portfolio attributable to the Contracts for the performance of administrative services. With regard to Replacement Portfolio A, the investment adviser for the Portfolio and the Company have entered into a similar agreement, however, the fee payable under that agreement is significantly less than the fee payable under the agreement between the Company and the investment adviser for Replaced Portfolio A. With regard to Replacement Portfolio B, the investment adviser for the Portfolio and the Company have *not* entered into a similar agreement. As such, the Company will not receive revenue sharing payments from the investment adviser for Replacement Portfolio B. Replaced Portfolio A Federated Quality Bond Fund II (percent) Replacement Portfolio A Fidelity VIP Investment Grade Bond Portfolio (percent) Advisory Fee 0.60 0.32 Distribution (12b-1) Fee 0.25 a 0.10 Other Expenses 0.39 0.12 Total Operating Expenses 1.24 0.54 Less Expense Waivers and Reimbursements b 0.54 N/A Net Operating Expenses 0.70 0.54 Portfolio Turnover Rate 64 34 a With regard to Replacement Portfolio A, its Service Class is authorized to pay a 12b-1 fee at an annual rate of 0.25% of its average net assets, or such lesser amount as the Portfolio's Trustees may determine from time to time. The Service Class currently pays a 12b-1 fee at an annual rate of 0.10% of its average net assets throughout the month. The 12b-1 fee rate may be increased only when the Trustees believe that it is in the best interests of variable product owners to do so. b With regard to Replaced Portfolio A, the investment adviser waived and the distributor and shareholder services provider elected not to charge certain amounts. The investment adviser voluntarily waived a portion of the advisory fee which waiver the investment adviser may terminate at any time. The advisory fee paid by Replaced Portfolio A (after the voluntary waiver of the advisory fee) was 0.56% for the fiscal year ended December 31, 2006. Replaced Portfolio A did not pay or accrue the distribution (12b-1) fee during the fiscal year ended December 31, 2006. The prospectus for Replaced Portfolio A notes that there is no present intention for Replaced Portfolio A to pay or accrue a distribution (12b-1) fee during the fiscal year ended December 31, 2007. Also, Replaced Portfolio A did not pay or accrue the shareholder services fee/account administration fee during the fiscal year ended December 31, 2006. Total other expenses for Replaced Portfolio A (after the voluntary waiver of the shareholder services fee/account administration fee) were 0.14% for the fiscal year ended December 31, 2006. Replaced Portfolio B Federated International Equity Fund II (percent) Replacement Portfolio B Vanguard International Portfolio (percent) Advisory Fee 1.00 0.39 Distribution (12b-1) Fee N/A N/A Other Expenses 0.77 0.05 Total Operating Expenses 1.77 0.44 Less Expense Waivers and Reimbursements c 0.28 N/A Net Operating Expenses 1.49 0.44 Portfolio Turnover Rate 83 29 c With regard to Replaced Portfolio B, the administrator and shareholder services provider waived and/or elected not to charge certain amounts. Replaced Portfolio B did not pay or accrue a shareholder services fee during the fiscal year ended December 31, 2006. The prospectus for Replaced Portfolio B notes that there is no present intention for Replaced Portfolio B to pay or accrue a shareholder services fee during the fiscal year ended December 31, 2007. Also, the administrator voluntarily waived a portion of its fee which waiver the administrator may terminate at any time. Total other expenses for Replaced Portfolio B (after the voluntary waivers and reduction) were 0.49% for the fiscal year ended December 31, 2006. 26. The following tables compare the respective asset levels, expenses ratios (after expense waivers and reimbursements) and performance data for each Replaced Portfolio and each Replacement Portfolio for fiscal years 2004, 2005 and 2006. Net assets at end of period Expense ratio (percent) Total return (percent) Federated Quality Bond Fund II 2004 $518,023,000 0.70 3.62 2005 480,859,000 0.70 1.30 2006 390,738,000 0.70 4.15 Fidelity VIP Investment Grade Bond Portfolio 2004 1,611,417,000 0.66 4.32 2005 1,649,333,000 0.58 2.08 2006 1,782,079,000 0.54 4.30 Federated International Equity Fund II 2004 53,093,000 1.57 14.06 2005 58,700,000 1.58 9.08 2006 70,213,000 1.49 18.89 Vanguard International Portfolio 2004 557,000,000 0.41 19.42 2005 840,000,000 0.41 16.31 2006 1,562,000,000 0.44 26.75 27. Replaced Portfolio A, which has a high concentration in corporate debt securities, is positioned on the conservative end of the risk/return spectrum for fixed income investment options and offered Contract owners a fixed income option with limited risk. Over the past seven years, Replaced Portfolio A has significantly underperformed its peers leading the Company to reassess the position of its fixed income investment option. In an attempt to improve overall returns for the fixed income investment option while still maintaining a relatively low level of risk, the Company decided to select a fixed income investment option which is more representative of the overall bond market. Applicants believe that Replacement Portfolio A meets this goal. 28. The Company selected Replaced Portfolio B to diversify the investment options under the Contract to include a portfolio selection that pursued international investment opportunities. The managers of Replaced Portfolio B pursue positive total return on assets invested primarily in equity securities of mid- to large-capitalization companies based outside the U.S. Over the past five years, however, Replaced Portfolio B has underperformed the Morgan Stanley Capital International, Europe, Australasia, Far East Index (“MSCI EAFE Index”), the benchmark used by Replaced Portfolio B as well as peer funds. Replacement Portfolio B uses a multiple manager approach to pursue long-term capital appreciation by investing primarily in non-U.S. growth stocks of large, stable companies diversified across countries that the investment managers believe demonstrate above-average growth potential. Although the overall characteristics of the assets of Replacement Portfolio B may differ from broad international stock indices, over the past five years, the performance of Replacement Portfolio B has, in each of the last three years, exceeded the performance of Replaced Portfolio B. 29. In the case of Replaced Portfolio A, performance has been in the bottom quartile for comparable funds over the last three years, and has been lower than its benchmark for the past five years. In the case of Replaced Portfolio B, performance ranks in the bottom decile for comparable funds over the last 1-, 3-, and 5-year periods. 30. The stated investment objective, principal investment strategies and principal investment risks of the Replacement Portfolios are substantially similar to those of the Replaced Portfolios, so that Contract owners will have continuity in investment and risk expectations. The net expenses of each Replacement Portfolio is substantially less than those for the corresponding Replaced Portfolio for the year ended December 31, 2006, even after expense waivers and reimbursements for the Replaced Portfolio have been taken into account. 31. Replacement Portfolio A has a substantially identical investment objective as that of Replaced Portfolio A. Both pursue their investment objective by investing, under normal market conditions, in a diversified portfolio of investment grade fixed-income securities, consisting of corporate debt securities, U.S government issued mortgage-backed securities and U.S. Treasury and agency securities. Each retains the flexibility to invest in corporate debt securities of foreign issuers and in derivative instruments, such as options, futures and swap contracts. 32. The primary difference in the implementation of investment strategies of Replaced Portfolio A and Replacement Portfolio A manifest in the degree of flexibility exercised by their advisors in implementing the strategies. Replaced Portfolio A's investment advisor emphasizes an active trading approach and relies on a fundamental analysis of each company in making an investment decision while the investment advisor for Replacement Portfolio A uses the Lehman Brothers U.S. Aggregate Index (the “Lehman Index”) as the primary guide to structure Replacement Portfolio A and select investments with the goal of managing Replacement Portfolio A to have an overall interest rate risk similar to the Lehman Index. Conversely, whereas Replaced Portfolio A's investment advisor invests exclusively in fixed-income securities rated investment grade, the investment advisor for Replacement Portfolio A is not so constrained and may invest up to 10 percent of Replacement Portfolio A's assets in lower quality debt securities, sometimes referred to as junk bond securities. 33. Notwithstanding some difference in the stated investment objectives of Replacement Portfolio B and Replaced Portfolio B, both emphasize capital appreciation as the primary investment objective and both follow substantially identical investment strategies to pursue their investment objectives. Both pursue their investment objectives by investing primarily in equity securities of well-capitalized companies based outside the United States that have favorable growth prospects. The investment advisor for Replaced Portfolio B and the investment advisors for Replacement Portfolio B each use an active management approach and rely on a combination of fundamental analysis of each company and an analysis of stock market and economic cycles before making an investment decision. None of the investment advisors are limited with respect to the countries and industries in which they may invest. Each investment advisor retains the flexibility to invest in securities issued by mid-cap and small-cap companies as well as securities of companies in emerging markets. 34. The primary difference in investment objectives of Replaced Portfolio B and Replacement Portfolio B manifests in the degree to which Replaced Portfolio B emphasizes income from portfolio securities as a secondary investment objective. In that regard, Replaced Portfolio B's investment advisor may purchase a security solely to generate income or for the potential to generate income without regard to capital appreciation whereas the investment advisors for Replacement Portfolio B would not purchase a security solely for that purpose. Replaced Portfolio B also places a slightly greater emphasis on investment in securities of mid-cap companies than Replacement Portfolio B. 35. Replacement Portfolio A has available to it transactional advantages attributable to achieved economies of scale greater than those of Replaced Portfolio A and has a significantly lower expense ratio than Replaced Portfolio A even after expense waivers and reimbursements for Replaced Portfolio A have been taken into account. Although Replacement Portfolio B has not yet achieved a level of assets equal to or greater than Replaced Portfolio B, Replacement Portfolio B has a significantly lower expense ratio than Replaced Portfolio B even after expense waivers and reimbursements for Replaced Portfolio B have been taken into account. 36. For Contract owners on the date of the proposed substitutions, the Company will reimburse, on the last business day of each fiscal period (not to exceed a fiscal quarter) during the twenty-four months following the date of the proposed substitutions, the subaccount investing in the Replacement Portfolio such that the sum of the Replacement Portfolio's operating expenses (taking into account fee waivers and expense reimbursements) and subaccount expenses for such period will not exceed, on an annualized basis, the sum of the corresponding Replaced Portfolio's operating expenses (taking into account fee waivers and expense reimbursements) and subaccount expenses for the fiscal year preceding the date of the proposed substitution. In addition, for twenty-four months following the proposed substitutions, the Company will not increase asset-based fees or charges for Contracts outstanding on the date of the proposed substitutions. 37. By the May 1, 2008 prospectuses for the Contracts and the Accounts, the Company will notify owners of the Contracts of their intention to take the necessary actions to carry out the proposed substitutions. The current prospectus for each Replacement Fund, as well as the current prospectuses for all other portfolios available as investment options available under the Contracts, will be bound together with the May 1, 2008 prospectuses for the Contracts and the Accounts. 38. The prospectuses for the Contracts will advise the Contract owners that from the date of the prospectus until the date of the proposed substitutions, the Company will not exercise any rights reserved by it under any Contract to impose additional charges for transfers until at least 30 days after the proposed substitutions. Similarly, the prospectus will disclose that, from May 1, 2008 until the date of the proposed substitutions, the Company will permit Contract owners to transfer Contract value out of each subaccount currently holding shares of a Replaced Portfolio to other subaccounts and the fixed account without those transfers being treated as transfers for purposes of determining the remaining number of transfers that may be permitted in the Contract year without a transfer charge. The prospectuses will also advise Contract owners that if the proposed substitutions are carried out, then each Contract owner affected by the substitutions will be sent a written notice (described immediately below) informing them of the facts and details of the substitutions. 39. Within five days after the proposed substitutions, Contract owners who are affected by the substitutions will be sent a written notice informing them that the substitutions were carried out. The notice will also reiterate the facts that the Company:
(1)Will not exercise any rights reserved by it under any of the Contracts to impose additional charges for transfers until at least 30 days after the proposed substitutions, and
(2)will, for at least 30 days following the proposed substitutions, permit such Contract owners to transfer Contract values out of the subaccounts holding shares of the Replacement Portfolios to other subaccounts and the fixed account without those transfers being treated as transfers for purposes of determining the remaining number of transfers permitted in the Contract year without a transfer charge. The notice as delivered in certain jurisdictions may also explain that the right of a Contract owner to make transfers in connection with the proposed substitutions will not affect such Contract owner's right, under insurance regulations in those jurisdictions, to exchange his or her Contract for a fixed-benefit life insurance contract or a fixed-benefit annuity Contract during the 60 days following the substitutions. 40. The Company will carry out the proposed substitutions by redeeming shares of each Replaced Portfolio held by the Accounts for cash and applying the proceeds to the purchase of shares of the Replacement Portfolios. The proposed substitutions will take place at relative net asset value with no change in the amount of any Contract owner's Contract value or death benefit or in the dollar value of his or her investment in any of the Accounts. Contract owners will not incur any fees or charges as a result of the proposed substitutions, nor will their rights or the Company's obligations under the Contracts be altered in any way. All applicable expenses incurred in connection with the proposed substitutions, including brokerage commissions and legal, accounting, and other fees and expenses, will be paid by the Company. In addition, the proposed substitutions will not impose any tax liability on Contract owners. The proposed substitutions will not cause the Contract fees and charges currently being paid by existing Contract owners to be greater after the proposed substitutions than before the proposed substitutions. Applicants' Legal Analysis 1. The Applicants request that the Commission issue an order pursuant to Section 26(c) of the Act approving the substitution by the Company of Service Class shares of Replacement Portfolio A for shares of Replaced Portfolio A, and the substitution of shares of Replacement Portfolio B for shares of Replaced Portfolio B held by the Accounts. 2. The Applicants assert that all the Contracts expressly reserve for the Company the right, subject to compliance with applicable law, to substitute shares of one fund or portfolio held by a subaccount of an Account for another. The prospectuses for the Contracts and the Accounts contain appropriate disclosure of this right. 3. Applicants maintain that Contract owners will be better served by the proposed substitutions and that the proposed substitutions are appropriate given the Replacement Portfolios, the Replaced Portfolios, and other investment options available under the Contracts. In the last three years, Replacement Portfolio A has had investment performance superior to that of Replaced Portfolio A, and Replacement Portfolio B has had investment performance superior to that of Replaced Portfolio B. In addition, Replacement Portfolio A has had substantially lower expenses over this same period than Replaced Portfolio A, and Replacement Portfolio B has had substantially lower expenses over this same period than Replaced Portfolio B. 4. Applicants believe that Replacement Portfolio A and Replaced Portfolio A are substantially the same in their stated investment objectives and principal investment strategies, and that Replacement Portfolio B and Replaced Portfolio B are substantially similar in their stated investment objectives and principal investment strategies, as to afford investors continuity of investment and risk. 5. Although each Replaced Portfolio benefits from an expense reimbursement arrangement that reduces the Portfolio's expenses, even after the reimbursement for each Replaced Portfolio has been taken into account, the expenses of the corresponding Replacement Portfolio are still significantly lower. 6. The Applicants represent that the proposed substitutions retain for Contract owners the investment flexibility that is a central feature of the Contracts. If the proposed substitutions are carried out, all Contract owners will be permitted to allocate purchase payments and transfer Contract values between and among the remaining subaccounts as they could before the proposed substitutions. 7. The Applicants maintain that the proposed substitutions are not the type of substitution that Section 26(c) was designed to prevent. Unlike traditional unit investment trusts where a depositor could only substitute an investment security in a manner which permanently affected all the investors in the trust, the Contracts provide each Contract owner with the right to exercise his or her own judgment and transfer Contract values into other subaccounts and the fixed account. Moreover, the Contracts will offer Contract owners the opportunity to transfer amounts out of the affected subaccounts into any of the remaining subaccounts without cost or disadvantage. The proposed substitutions, therefore, will not result in the type of costly forced redemption that Section 26(c) was designed to prevent. Conclusion Applicants submit that, for all the reasons stated above, the proposed substitutions are consistent with the protection of investors and the purposes fairly intended by the policy and provisions of the Act. For the Commission, by the Division of Investment Management, under delegated authority. Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5919 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57519; File No. SR-CBOE-2008-29] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend Two Pilot Programs March 18, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on March 13, 2008, the Chicago Board Options Exchange, Incorporated (“CBOE” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b-4(f)(6) thereunder, which renders it effective upon filing with the Commission. 4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b-4(f)(6). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change CBOE proposes to amend its rules to extend for an additional year, until March 14, 2009, two existing pilot programs. The text of the proposed rule change is available on the CBOE's Web site ( *http://www.cboe.org/Legal* ), at the Exchange's Office of Secretary, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries set forth in Sections A, B, and C below of the most significant aspects of such statements A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this rule change is to extend for an additional year, until March 14, 2009, two existing pilot programs. First, CBOE proposes to amend CBOE Rules 8.4(c)(i), 8.85, 8.91 and 8.93(vii) to extend, until March 14, 2009, the pilot programs that allow a Remote Market Maker (“RMM”), an Off-Floor DPM, and an e-DPM to have up to one separate affiliated Market-Maker physically present in the trading crowds where it operates as an RMM, Off-Floor DPM, or e-DPM, respectively. (Such Market-Makers would be required to trade on a separate membership.) 5 5 These pilot programs previously were extended for one year until March 14, 2008. *See* Securities Exchange Act Release No. 55438 (March 9, 2007), 72 FR 12642 (March 16, 2007) (SR-CBOE-2007-19) (granting immediate effectiveness to SR-CBOE-2007-19). *See also* Securities Exchange Act Release No. 55531 (March 26, 2007), 72 FR 15736 (April 2, 2007) (SR-CBOE-2006-94) (order allowing DPM's to operate away from CBOE's trading floor). Second, CBOE proposes to amend Rules 8.3(c)(viii) and 8.4(c)(ii) to extend, until March 14, 2009, the pilot program which allows a CBOE member or member firm to have multiple aggregation units operating as separate Market-Makers or RMMs within the same class, provided they satisfy certain criteria set forth in CBOE Rule 8.4(c)(ii)(A)-(C). 6 6 This pilot program previously was extended for one year until March 14, 2008. *See* Securities Exchange Act Release No. 55474 (March 15, 2007), 72 FR 13324 (March 21, 2007) (SR-CBOE-2007-20) (granting immediate effectiveness to SR-CBOE-2007-20). CBOE initially proposed to extend these two pilot programs in its pending rule filing, SR-CBOE-2007-120, which filing proposes to amend CBOE rules relating Market-Makers and RMMs in various respects. 7 SR-CBOE-2007-120 has been published for comment in the **Federal Register** , and the comment period expires on March 21, 2008. 8 Because these pilot programs are scheduled to expire prior to when the comment period expires on SR-CBOE-2007-120 and the time by when the SEC may approve SR-CBOE-2007-120, CBOE determined to seek a one-year extension of the two pilot programs in this rule filing. 7 Among other changes, SR-CBOE-2007-120 proposes to delete reference to RMMs in CBOE's rules, amend CBOE Rules 8.3 and 8.7 relating to the appointment of Market-Makers and Market-Maker obligations, respectively, and update or delete outdated provisions in other rules, including CBOE Rule 8.3A relating to Class Quoting Limits. 8 *See* Securities Exchange Act Release No. 57367 (February 21, 2008), 73 FR 11168 (February 29, 2008) (SR-CBOE-2007-120). As noted in SR-CBOE-2007-120, CBOE believes that both of these two pilot programs have been successful, and CBOE has not experienced any negative effects with respect to the pilot programs. Accordingly, CBOE believes that the proposed rule change is designed to promote just and equitable principles of trade, and will enhance competition and liquidity in the option classes in which the market participants who participate in the pilot programs trade. Finally, CBOE notes that these pilot programs were initially adopted, in part, due to CBOE's usage of an algorithm that allocates electronic trades, in whole or in part, in an equal percentage based on the number of market participants quoting at the best bid or offer—specifically CBOE's ultimate matching algorithm, “UMA.” In January 2008, CBOE determined to utilize a pro-rata algorithm, instead of UMA, as the applicable matching algorithm in all Hybrid classes. In the event CBOE determines to utilize the UMA algorithm in the future in a Hybrid option class, CBOE commits to providing data to the Commission relating to the pilot programs which allow an RMM, an Off-Floor DPM, and an e-DPM to have up to one separate affiliated Market-Maker physically present in the trading crowds where it operates as an RMM, Off-Floor DPM, or e-DPM, respectively. 2. Statutory Basis CBOE believes that the proposed rule change is consistent with Section 6(b) of the Act, 9 in general, and furthers the objectives of Section 6(b)(5) of the Act, 10 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system, and, in general, protect investors and the public interest. 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). B. Self Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received from Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 11 and Rule 19b-4(f)(6) thereunder. 12 Because the proposed rule change does not:
(i)Significantly affect the protection of investors or the public interest;
(ii)impose any significant burden on competition; and
(iii)become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6)(iii) thereunder. 13 11 15 U.S.C. 78s(b)(3)(A)(iii). 12 17 CFR 240.19b-4(f)(6). 13 Rule 19b-4(f)(6) also requires the Exchange to give the Commission written notice of its intent to file the proposed rule change along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied the pre-filing requirement. A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii), 14 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. CBOE has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange believes the waiver of this period will allow it to continue the pilot programs without undue delay, which it believes is in the public interest as it will avoid inconvenience and interruption to the public. The Commission believes such waiver is consistent with the protection of investors and the public interest because it presents no new issues and will allow the pilot programs to operate without interruption. For this reason, the Commission designates the proposal to be operative upon filing with the Commission. 15 14 17 CFR 240.19b-4(f)(6)(iii). 15 For purposes only of waiving the 30-day pre-operative period, the Commission has considered the proposed rule's impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-CBOE-2008-29 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-CBOE-2008-29. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro/shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing will also be available for inspection and copying at the principal office of CBOE. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File number SR-CBOE-2008-29 and should be submitted on or before April 15, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 16 16 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5921 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57524; File No. SR-Amex-2008-05] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Order Granting Accelerated Approval to Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to Smaller Reporting Companies March 18, 2008. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 19b-4 thereunder, 2 notice is hereby given that on January 25, 2008, the American Stock Exchange LLC (“Amex” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. On March 13, 2008, Amex submitted Amendment No. 1 to the proposed rule change. 3 This order provides notice of the proposed rule change and approves the proposed rule change, as amended, on an accelerated basis. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 Amendment No. 1 replaced and superseded the original filing in its entirety. Amendment No. 1 was filed to make revisions to the rule filing and to the text of the proposed rule change to reflect recently approved changes to the Amex Company Guide. *See* Securities Exchange Act Release No. 57393 (February 27, 2008), 73 FR 11962 (March 5, 2008) (order approving SR-Amex-2007-79). Amendment No. 1 also made other, technical corrections. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Sections 801, 802, 803, 807, and 809 of the Amex Company Guide (“Company Guide”) to conform to recent Commission amendments to rules and forms under the Securities Act of 1933 4 ( “Securities Act”) and the Exchange Act relating to smaller reporting companies. 4 15 U.S.C. 77(a) *et seq.* The text of the proposed rule change is available on the Amex's Web site at *http://www.amex.com* , the Office of the Secretary, the Amex and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Commission recently adopted amendments to the disclosure and reporting requirements under the Securities Act and the Exchange Act in order to simplify and provide regulatory relief for smaller companies (the “Smaller Reporting Company Amendments”). 5 The Exchange proposes to amend the provisions of the Amex Company Guide (“Company Guide”) that refer to the small business issuer rules and forms under the Securities Act and the Act to make the references consistent with Smaller Reporting Company Amendments. At the same time, the Exchange proposes to amend or delete, in the relevant Company Guide sections, portions of those sections in the Company Guide that have become obsolete or otherwise need to be updated. 5 *See* Securities Exchange Act Release Nos. 33-8876; 34-56994; and 39-2451, 73 FR 934 (January 4, 2008) (File No. S7-15-07) (the “Smaller Reporting Company Regulatory Relief and Simplification Release”). As described by Amex, the intent of the Smaller Reporting Company Amendments, which became effective on February 4, 2008, is to give smaller companies faster and easier access to capital when they need it or when market conditions are favorable. Specifically, the former “small business issuer” and “non-accelerated filers” categories, to the extent feasible, were combined to create a new expanded category called “Smaller Reporting Company.” Companies that have less than $75 million in public equity float will now qualify as Smaller Reporting Companies. 6 Companies without a calculable public equity float will qualify if their revenues were below $50 million in the last fiscal year. 7 The definition of Smaller Reporting Company effectively expands the number of companies that qualify for the scaled disclosure requirements previously available to small business issuers. 8 6 17 CFR 230.405(1) and
(2)and 17 CFR 240.12b-2. 7 17 CFR 230.405(3) and 17 CFR 240.12b-2. 8 *See* the Smaller Reporting Company Regulatory Relief and Simplification Release. In addition, the Regulation S-B 9 scaled disclosure requirements were integrated into Regulation S-K 10 as of the effective date of the Smaller Reporting Company Amendments, and Forms 10-QSB and 10-KSB 11 are being eliminated, effective October 31, 2008 and March 15, 2009, respectively. 12 9 Formerly 17 CFR 228.10-228.703. 10 17 CFR 229.10-229.1123. 11 17 CFR 249.308b and 17 CFR 249.310b. 12 *See* the Smaller Reporting Company Regulatory Relief and Simplification Release. In order to conform the Amex Company Guide to the Smaller Reporting Company Amendments, the Exchange proposes to amend the following sections in its Company Guide: *Section 801.* The Exchange proposes to amend Section 801(h) of the Company Guide to replace the reference to “Small Business Issuer” with a reference to “Smaller Reporting Company,” including a reference to the definition of Smaller Reporting Company in Item 10(f)(1) of Regulation S-K, 13 where the term Smaller Reporting Company is defined. 13 17 CFR 229.10(f)(1). *Section 802.* The Exchange proposes to amend Section 802(a) of the Company Guide to remove the reference to “Small Business Issuer” and replace it with a reference to “Smaller Reporting Company.” However Amex will retain the cross-reference to Section 801(h) of the Company Guide for the definition of Smaller Reporting Company. *Section 803B(2)(a)(iii):* The Exchange proposes to amend Section 803B(2)(a)(iii) of the Company Guide, which sets out the requirements for independent directors and audit committees for Amex-listed issuers, to update the references to Regulation S-K and Regulation S-B. Specifically, the Exchange proposes to remove the reference to Item 401(h) of Regulation S-K 14 and Item 401(e) of Regulation S-B 15 and replace it with a reference to Item 407(d)(5)(ii) 16 and Item 407(d)(5)(iii) 17 of Regulation S-K. 14 17 CFR 229.401(h). 15 Formerly 17 CFR 228.401(e). 16 17 CFR 229.407(d)(5)(ii). 17 17 CFR 229.407(d)(5)(iii). *Section 803B(2)(c).* The Exchange proposes to amend Section 803B(2)(c) of the Company Guide to remove and replace the reference to small business issuers with a reference to the new term, “Smaller Reporting Companies,” and to include a reference to Item 10(f)(1) of Regulation S-K, 18 where the term Smaller Reporting Company is defined. The independent director requirements (50% independent) and audit committee requirements (a minimum of two independent directors) that applied to small business issuers would now apply to issuers that qualify as Smaller Reporting Companies. 18 17 CFR 229.10(f)(1). *Section 803B(6)(a) and
(b)and Commentary .10.* The Exchange proposes to remove the last sentence of Section 803(6)(a), which states that the text of Rule 10A-3 is reproduced in Commentary .10 to Section 803, and to delete in its entirety Commentary .01 to Section 803, which sets out Rule 10A-3 in full. The Exchange originally included Rule 10A-3 in the Company Guide for the convenience of listed issuers at the time of the adoption of the Exchange's related rules in 2003, and the version of Rule 10A-3 now included in the Company Guide is out of date. The Exchange now believes that Rule 10A-3 has been in place for a long enough period that it is no longer necessary to include it in the Company Guide. The Exchange proposes to amend Section 803B(6)(b) of the Company Guide to remove the references to “Small Business Issuer” and replace them with references to “Smaller Reporting Company.” As a result, the periods allowed to small business issuers set out in Section 803B(6) to cure a failure to comply with the audit committee composition requirements would now apply to issuers that qualify as Smaller Reporting Companies. *Section 807:* The Exchange proposes to amend Section 807 of the Company Guide in order to remove the reference to the definition of the “code of ethics” set forth in Regulation S-B, which is no longer appropriate given the integration of the Regulation S-B 19 scaled disclosure requirements into Regulation S-K. 19 Formerly 17 CFR 228.10-228.703. The Exchange also proposes to amend Commentary .01 to Section 807 of the Company Guide in order to conform the Amex provision regarding code of conduct waivers with the requirements of Section B of Form 8-K. 20 Accordingly, the Exchange proposes to change the time period in which a company must report a waiver of its code of conduct and ethics for directors or executive officers from five days to four days. The Exchange also proposes to make clear that if the event occurs on a Saturday, Sunday or holiday on which the Commission is not open for business, then the four business-day period shall begin to run on, and include, the first business day thereafter. 21 20 17 CFR 249.308. 21 The Commission notes that this language conforms to the language set forth in Paragraph B1 of Form 8-K. *Section 809.* Section 809 of the Company Guide relates to the effective dates and transition terms for the corporate governance provisions now set out in Part 8 of the Company Guide. The Exchange proposes to revise Section 809 to remove references to effective dates and transition dates that have passed and are, therefore, no longer relevant. Specifically, sub-Sections 809(a), (d),
(e)and
(f)are proposed to be deleted in their entirety, and sub-Sections 809
(b)and
(c)will become sub-Sections
(a)and (b), respectively. Sub-Section 809(a) will be revised to replace references to “small-business issuer” with “Smaller Reporting Company.” Finally, the Exchange proposes to delete Commentary .01, which re-stated Section 121 as it was in effect immediately prior to Commission approval of Section 809, in its entirety, since the transition periods that required its inclusion have expired. 2. Statutory Basis The Exchange states that the proposed rule change is consistent with Section 6(b) of the Exchange Act 22 in general, and furthers the objectives of Section 6(b)(5) of the Exchange Act 23 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. 22 15 U.S.C. 78f(b). 23 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received with respect to the proposed rule change. III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Exchange Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-Amex-2008-05 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-Amex-2008-05. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of Amex. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-Amex-2008-05 and should be submitted on or before April 15, 2008. IV. Commission's Findings and Order Granting Accelerated Approval of the Proposed Rule Change The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. 24 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Exchange Act, 25 which requires, among other things, that the Exchange's rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. 24 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 25 15 U.S.C. 78f(b)(5). The Commission believes that the proposed rule change is reasonable and appropriate because it would conform the rules governing a small issuer's eligibility for relief under specified provisions of the Exchange's corporate governance listing standards with the rules governing a small issuer's eligibility for relief pursuant to the Securities Act and the Exchange Act as recently amended. In addition, the proposed rule change would remove references in Amex's Company Guide that became obsolete in light of the Smaller Reporting Company Amendments or are otherwise outdated; and conform the Exchange's rule relating to disclosure of waiver of an issuer's code of conduct with the requirement of Form 8-K. The Commission finds good cause, consistent with Section 19(b)(2) of the Exchange Act, 26 for approving this proposed rule change before the thirtieth day after the publication of notice thereof in the **Federal Register** . As noted by Amex, the Smaller Reporting Company Amendments became effective on February 4, 2008, and in the interest of timeliness and in order to avoid confusion, the Commission believes that accelerated approval is warranted and that no reasonable purpose would be served by delaying implementation of this and the other technical and conforming amendments made by the proposed rule change. 26 15 U.S.C. 78s(b)(2). V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act, 27 that the proposed rule change (SR-Amex-2008-05), as modified by Amendment No. 1, be, and it hereby is, approved on an accelerated basis. 27 *Id.* For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 28 28 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5917 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57527; File No. SR-Amex-2007-129] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of a Proposed Rule Change Relating to an Exchange Member's Conduct of Doing Business With the Public March 19, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, as amended (“Act”) 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on November 29, 2007, the American Stock Exchange LLC (“Amex” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(l). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Amex proposes to amend certain Amex Rules that govern an Exchange member's conduct of doing business with the public. Specifically, the proposed rule change would require member organizations (also “member firms” or “firms”) to integrate the responsibility for supervision of their public customer options business into its overall supervisory and compliance programs. In addition, the proposal would require member firms to strengthen their supervisory procedures and internal controls as related to their public customer options business. The text of the proposed rule change is available at the Amex, the Commission's Public Reference Room and *http://www.amex.com.* II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Amex included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. The Amex has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose a. Integration of Options Supervision The purpose of the proposed rule change is to create a supervisory structure for options that is similar to that required by New York Stock Exchange, Inc. (“NYSE”) Rule 342 and National Association of Securities Dealers, Inc. (“NASD”) Rule 3010. 3 The proposed rule change would also conform Amex rules to those of the CBOE by eliminating the requirement that a member firm, qualified to do a public customer business in options, designate a single person to act as a Senior Registered Options Principal (“SROP”) for the member organization and that each such member organization designate a specific individual as a Compliance Registered Options Principal (“CROP”). 4 The Exchange proposes to eliminate the SROP and CROP supervisory categories, allowing member firms to supervise their options activities through their overall supervisory and compliance programs that monitor all other securities products. 3 On July 26, 2007, the Commission approved a proposed rule change filed by NASD to amend NASD's Certificate of Incorporation to reflect its name change to Financial Industry Regulatory Authority, Inc., or FINRA, in connection with the consolidation of the member firm regulatory functions of NASD and NYSE Regulation, Inc. *See* Exchange Act Release No. 56146 (July 26, 2007), 72 FR 42190 (Aug. 1, 2007). The FINRA rule book currently consists of both NASD rules and certain NYSE rules that FINRA has incorporated. 4 *See* Securities and Exchange Act Release No. 56492 (September 21, 2007) 72 FR 54952 (September 27, 2007) (SR-CBOE-2007-106). The SROP concept was first introduced during the early years of development of the listed options market. Previously under Amex rules, member firms were required to designate one or more persons qualified as Registered Options Principals (“ROPs”) to have supervisory responsibilities with respect to the firms' options business. As the number of ROPs at larger firms began to increase, the Amex imposed an additional requirement that member firms designate one of their ROPs as the SROP. This was intended to eliminate confusion as to where the compliance and supervisory responsibilities lay by centralizing in a single supervisory officer overall responsibility for the supervision of a firm's options activities. 5 Subsequently, following the recommendation of the Special Study of the Options Market, 6 the Amex and the other options exchanges required firms to designate a CROP to be responsible for each firm's overall compliance program with respect to its options activities. The CROP could be the same person designated as a SROP, but while the CROP generally was not permitted to have sales functions in the firm, whereas the SROP was not so restricted. 5 *Report of the Special Study of the Options Market (“Special Study”),* p. 316 note 11 (December 22, 1978). 6 *Id.* at p. 335. Since the SROP and CROP requirements were first imposed, the supervisory function with respect to options activities of most securities firms has been integrated into their supervisory function matrix for securities activities overall. This not only reflects the maturity of the options market, but also recognizes the ways in which the uses of options themselves have become more integrated with other securities in the implementation of particular strategies. By permitting supervision of a firm's options activities to be handled in the same manner as the supervision of its securities and futures activities, the proposed rule change will ensure that supervisory responsibility over each segment of a firm's business is assigned to the best qualified persons in the firm, thereby enhancing the overall quality of supervision and compliance. The proposed rule change will allow firms the flexibility to assign such supervisory and compliance responsibilities, which formerly resided with the SROP and/or CROP, to more than one individual. For example, the proposed rule change will permit a member firm to designate certain ROPs to be responsible for a variety of supervisory compliance functions such as approving acceptance of discretionary accounts 7 ; approval of communications to customers 8 and exceptions to a member firm's suitability standards for trading uncovered short options. 9 Firms would be likely to do this in instances where the firm believes it advantageous to do so to enhance its supervisory or compliance structure. Typically, a firm may also wish to divide these functions on the basis of geographic region or functional considerations. Amex Rule 920 would be amended to clarify the qualification requirements of individuals designated as ROPs and also to specify the registration requirements of individuals who accept orders from non-broker-dealer customers. 7 *See* proposed Amex Rule 924(a) and Commentary .05 to Rule 920. 8 *See* proposed Amex Rule 991(b). 9 *See* proposed Amex Rule 921(g)(3). With respect to discretionary accounts, the proposal would require acceptance of such accounts to be assigned to individuals who are qualified ROPs. Further, the proposal would require that the individual who reviews the acceptance of a discretionary account (who is an individual other than the ROP who accepted the account as required by Amex Rule 924(a)) to be Series 4 qualified because such a review is not a routine sales supervisory function and requires more in-depth knowledge of options than what is covered by the Series 9/10 examination. 10 The proposed rule change would eliminate the requirement that discretionary options orders be approved on the day of entry by a ROP (with one exception as discussed below) because such requirement is not consistent with the use of supervisory tools in computerized format or exception reports generated after the close of trading day. No similar requirement exists for supervision of other securities accounts that are handled on a discretionary basis. 11 Discretionary orders would be required to be reviewed in accordance with a firm's written supervisory procedures. We believe the proposed rule change will ensure that supervisory responsibilities are assigned to specific qualified individuals, thereby enhancing the quality of supervision. 10 *See* supra note 5. 11 *See, e.g.* , NYSE Rule 408. Amex Rule 924 would be revised by adding as Commentary .01, a requirement that any firm that does not utilize computerized surveillance tools for the frequent and appropriate review of discretionary account activity must establish and implement procedures to require ROP-qualified individuals (“Qualified Individuals”) who have been designated to review discretionary accounts to approve and initial each discretionary order on the day entered. The Exchange believes that any firm that does not utilize computerized surveillance tools to monitor discretionary account activity should continue to be required to perform the daily manual review of discretionary orders. Under the proposed rule change, firms would continue to be required to designate Qualified Individuals to provide frequent appropriate supervisory review of options discretionary accounts. 12 This review includes the requirement that these Qualified Individuals review the accounts in order to determine whether the ROP accepting the account had a reasonable basis for believing that the customer was able to understand and bear the risks of the proposed strategies or transactions. This requirement provides an additional level of supervisory audit over options discretionary accounts that does not exist for other securities discretionary accounts. 12 *See* proposed Amex Rule 924(a). In addition, the proposed change to Amex Rule 922 would require that each member organization provide for the preparation and submission of a written annual report to one or more of its control persons or, if the firm has no control person, to the audit committee of its board of directors or its equivalent group (collectively referred to as, “Control Person”). The firm would be required to submit the report to the Exchange and to its Control Person by April 1st of each year. The firm would be required to detail in the report its supervision and compliance effort, including its options compliance program, during the preceding year and the adequacy of its ongoing compliance processes and procedures. 13 13 *See* proposed Amex Rules 922(g) and 922(h), which are modeled after NYSE Rules 342.30 and 354, respectively. Proposed Amex Rule 922(g) would further provide that a member organization that specifically includes its options compliance program in a report that complies with substantially similar NYSE and NASD rules will be deemed to have satisfied the requirements of Amex Rules 922(g) and 922(h). Where appropriate, the proposed rule changes would delete references to SROP and CROP in Amex Rules 421, 920, 921, 922, 924 and 991. Although the proposed rule change would eliminate entirely the positions and titles of SROP and CROP, firms would still be required to designate a single general partner or executive officer to assume overall authority and responsibility for internal supervision, control of the organization and compliance with securities laws and regulations. 14 A firm would also be required to designate specific qualified individuals as having supervisory or compliance responsibilities over each aspect of the firm's options activities and to set forth the names and titles of these individuals in its written supervisory procedures. 15 14 *See* proposed Amex Rule 922(a). 15 *See* proposed Amex Rule 922(a). The Exchange is a party to an options sales practice compliance plan, amended on March 26, 2007, entered into pursuant to Section 17(d) of the Securities Exchange Act of 1934 (the “1934 Act”) and Rule 17d-2, promulgated thereunder. 16 For Exchange members that are also FINRA members, the amended plan allocates responsibility for examination and enforcement of members' compliance with options sales practice rules primarily to FINRA 17 (the “Options 17d-2 Plan”). For non-FINRA members, the Options 17d-2 Plan provides that the exchange which is the Designated Examining Authority (“DEA”), pursuant to Rule 17d-1 under the Act, shall perform the regulatory responsibilities designated to it in the Options 17d-2 Plan. Under these provisions the Amex currently has responsibility for examination and enforcement of options sales practice rules as to three members (one of which is a dual member of the Philadelphia Stock Exchange and Amex and two Amex only members). FINRA will be primarily responsible for options sales practice examination and enforcement as to other dual members. In connection with the approval of these proposed changes, the Exchange intends to closely review written supervisory and compliance procedures of firms, for which it is the DEA, in the course of its routine examinations of member firms to ensure that supervisory and compliance responsibilities are adequately defined. 16 Securities Exchange Release Act No. 34-55532 (March 26, 2007) 72 FR 15729 (April 2, 2007). 17 *See, infra,* note 3. The Exchange believes the proposed rule changes will increase accountability and eliminate impractical and unrealistic supervisory standards applicable solely to listed options. The Exchange believes that the proposed rule changes are appropriate and will not materially alter the supervisory operations of firms. Supervisory Procedures and Internal Controls b. Supervisory Procedures and Internal Controls The Exchange is also proposing to amend certain rules to strengthen member firms' supervisory procedures and internal controls relating to a member's public customer options business. The proposed rule changes discussed below are modeled after NYSE and NASD rules approved by the Commission in 2004. 18 The Exchange believes its proposal to strengthen member supervisory procedures and internal controls is appropriate and consistent with the proposal discussed above to integrate the responsibility for supervision of a member firm's public customer options business into its overall supervisory and compliance program. 18 *See* Securities Exchange Act Release Nos. 49882 (June 17, 2004), 69 FR 35108 (June 23, 2004) (SR-NYSE-2002-36) (approval order), 49883 (June 17, 2004), 69 FR 35092 (June 23, 2004) (SR-NASD-2002-162) (approval order). The Exchange is proposing to revise Amex Rule 922(a)(3) to require the development and implementation of written policies and procedures reasonably designed to supervise sales managers and other supervisory personnel who service customer options accounts. 19 This requirement would apply to branch office managers, sales managers, regional/district sales managers, or any person performing a similar supervisory function. Such policies and procedures are expected to encompass all options sales-related activities. Proposed Amex Rule 922(a)(3)(i) would require that supervisory reviews of producing sales managers be conducted by a qualified ROP who is either senior to, or otherwise “independent of,” the producing manager under review. 20 This provision is intended to ensure that all options sales activity of a producing manager is monitored for compliance with applicable regulatory requirements by persons who do not have a personal interest in such activity. 19 Proposed Amex Rule 922(a)(3) is modeled after NYSE Rule 342.19. 20 An “otherwise independent” person is defined in proposed Amex Rule 922(a)(3)(i). Proposed Amex Rule 922(a)(3)(ii) would provide an exception for firms so limited in size and resources that there is no qualified person senior to, or otherwise independent of, the producing manager to conduct the review. In this case, the review would be conducted by a qualified ROP to the extent practicable. Under proposed Amex Rule 922(a)(3)(iii), a member relying on the limited size and resources exception must document the factors used to determine that compliance with each of the “senior” or “otherwise independent” standards of proposed Amex Rule 922(a)(3)(i) is not possible, and that the required supervisory systems and procedures in place with respect to any producing manager comply with the provisions of proposed Amex Rule 922(a)(3)(i) to the extent practicable. 21 21 Proposed Amex Rule 922(a)(3)(iv) would provide that a member organization that complies with the NYSE or NASD rules that are substantially similar to the requirements in Rules 922(a)(3)(i), (a)(3)(ii) and (a)(3)(iii) will be deemed to have met such requirements. Proposed Amex Rule 922(c)(i) would require member organizations to develop and maintain adequate controls over each of their business activities. The proposed rule would further require that such controls include the establishment of procedures to independently verify and test the supervisory systems and procedures for those business activities. A firm would be required to include in the annual report, prepared pursuant to proposed Amex Rule 922(g), a review of the firm's efforts in this regard, including a summary of the tests conducted and significant exceptions identified. The Exchange believes proposed Amex Rule 922(c)(i) would enhance the overall quality of each member organization's supervision and compliance function. 22 22 Proposed Amex Rule 922(c)(i) is modeled after NYSE Rule 342.23. Paragraph (c)(ii) of proposed Amex Rule 922 would provide that a member organization that complies with NYSE or NASD rules that are substantially similar to the requirements in paragraph (c)(i) of proposed Amex Rule 922 will be deemed to have met such requirements. Paragraph
(d)of proposed Amex Rule 922 would establish requirements for branch office inspections similar to the requirements of NYSE Rule 342.24. Specifically Amex Rule 922(d) would require a member organization to inspect, at least annually, each supervisory branch office and inspect each non-supervisory branch office at least once every three years. 23 The proposed rule would further require persons who conduct a firm's annual branch office inspection to be independent of the direct supervision or control of the branch office (i.e., not the branch office manager, or any person who directly or indirectly reports to such manager, or any person to whom such manager directly reports). The Exchange believes that requiring branch office inspections to be conducted by someone who has no significant financial interest in the success of a branch office should lead to more objective and vigorous inspections. 23 Proposed Amex Rules 922(d)(1)(i) and
(ii)would provide members with two exceptions from the annual supervisory branch office inspection requirement. Under proposed Amex Rule 922(e), any firm seeking an exemption, pursuant to Rule 922(d)(1)(ii), from the annual branch office inspection requirement would be required to submit to the Exchange written policies and procedures for systematic risk-based surveillance of its branch offices, as defined in Rule 922(e). Proposed Amex Rule 922(f) would require the annual branch office inspection programs to include, at a minimum, testing and verification of specified internal controls. 24 Proposed Amex Rule 922(d)(3) would provide that a firm that complies with the requirements of NASD or the NYSE that are substantially similar to the requirements of Rules 922(d),
(e)and
(f)will be deemed to have met such requirements. The Exchange is also proposing to amend Commentary .04 of Amex Rule 922 to define “branch office” in a way that is substantially similar to the definition of branch office in NYSE Rule 342.10. 24 Proposed Rules 922(e) and
(f)are modeled after NYSE Rules 342.25 and 342.26, respectively. Proposed Amex Rule 922(g)(4) would require a firm to designate a Chief Compliance Officer (CCO). Proposed Rule 922(g)(5) would require each firm's Chief Executive Officer (CEO), or equivalent, to certify annually that the member organization has in place processes to
(1)establish and maintain policies and procedures reasonably designed to achieve compliance with applicable Exchange rules and federal securities laws and regulations,
(2)modify such policies and procedures as business, regulatory, and legislative changes and events dictate, and
(3)test the effectiveness of such policies and procedures on a regular basis, the timing of which is reasonably designed to ensure continuing compliance with Exchange rules and federal securities laws and regulations. Proposed Amex Rule 922(g)(5) would also require the CEO to attest
(1)that he or she has conducted one or more meetings with the CCO in the preceding 12 months to discuss the compliance processes in proposed Rule 922(g)(5)(i),
(2)that he or she has consulted with the CCO and other officers to the extent necessary to attest to the statements in the certification, and
(3)that the compliance processes are evidenced in a report, reviewed by the CEO, CCO and such other officers as the member firm deems necessary to make the certification, that is provided to the member firm's board of directors and audit committee (if such committee exists). 25 25 Proposed Amex Rule 922(g)(5) is modeled after NASD Rule 3013 and NYSE Rule 342.30(e). Under proposed Amex Rule 922(b)(2), a member, upon a customer's written instructions, may hold mail for a customer who will be away from his or her usual address for no longer than two months if the customer is on vacation or traveling, or three months if the customer is going abroad. This provision would help ensure that members that hold mail, for customers who are away from their usual addresses, do so only pursuant to the customer's written instructions and for a specified, relatively short period of time. 26 26 Proposed Amex Rule 922(b)(2) is modeled after NASD Rule 3110(i). Proposed Amex Rule 922(b)(3) would require that, before a customer options order is executed, the account name or designation must be placed upon the memorandum for each transaction. In addition, only a Qualified Individual would be permitted to approve any changes in account names or designations. The ROP would be required to document the essential facts relied upon in approving the changes and maintain the record in an easily accessible place. A member would be required to preserve any documentation which provides for an account designation change for a period of not less than three years, with the documentation preserved for the first two years in an easily accessible place, as the term “easily accessible place” is used in Rule 17a-4 of the Act. 27 The Exchange believes the proposed rule would help to protect account name and designation information from possible fraudulent activity. 28 27 17 CFR 240.17a-4. 28 Proposed Amex Rule 922(b)(3) is modeled after NASD 3110(j). Amex Rule 924(d) allows firms to exercise time and price discretion on orders for the purchase or sale of a definite number of options contracts in a specified security. The Exchange proposes to amend Amex Rule 924(d) to limit the duration of this discretionary authority to the day it is granted, absent written authorization to the contrary. In addition, the proposed rule would require any exercise of time and price discretion to be reflected on the customer order ticket. The proposed one-day limitation would not apply to time and price discretion exercised for orders effected with or for an institutional account (as defined in Rule 924(d)) pursuant to valid Good-Till-Cancelled instructions issued on a “not held” basis. The Exchange believes that investors will receive greater protection by clarifying the time such discretionary orders remain pending. 29 29 Proposed Amex Rule 924(d) is modeled after NASD Rule 2510(d)(1). Overall, the Exchange believes the proposed rule changes recognize that options have become more integrated with other securities in the implementation of particular strategies, and thus should not continue to be regulated as though they are a new and experimental product. The Exchange further asserts that the supervisory and compliance structure in place for non-options products at most firms is not materially different from the structure in place for options. Accordingly, the Exchange submits that the proposed rule changes are appropriate and would not materially alter the supervisory operations of member firms. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6 of the Exchange Act 30 in general and furthers the objectives of Section 6(b)(5) 31 in particular in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. 30 15 U.S.C. 78f(b). 31 15 U.S.C. 78f(b)(5). Specifically, the Exchange believes this proposed rule change would achieve these ends by integrating the supervision and compliance functions relating to member organizations' public customer options activities into their overall supervisory structure, thereby eliminating any uncertainty over where supervisory responsibility lies, and by fostering the strengthening of member organizations' internal controls and supervisory systems. 32 32 Telephone call between Jeffrey Burns, Vice President and Associate General Counsel, Amex, and Haimera Workie, Branch Chief, Office of Chief Counsel, Division of Trading and Markets, SEC, on March 19, 2008. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange did not solicit or receive any written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the **Federal Register** or within such longer period
(i)as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or
(ii)as to which the Exchange consents, the Commission will:
(A)By order approve such proposed rule change, or
(B)Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form *http://www.sec.gov/rules/sro.shtml;* or • Send an e-mail to *rulecomments@sec.gov.* Please include File No. SR-Amex-2007-129 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-Amex-2007-129. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site at *http://www.sec.gov/rules/sro.shtml.* Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, 100 F Street, NE., Washington, DC 20549 on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-Amex-2007-129 and should be submitted on or before April 15, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 33 33 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5965 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57487; File No. SR-CBOE-2008-28] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposal To Make Clean-Up Changes by Amending Certain Rules March 13, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on March 10, 2008, the Chicago Board Options Exchange, Incorporated (“Exchange” or “CBOE”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b-4(f)(6) thereunder, 4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b-4(f)(6). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change CBOE proposes to make clean-up changes by deleting certain portions of rules containing an obsolete term, replacing a reference to “Nasdaq-100 Index Tracking Stock” with “PowerShares QQQ Trust,” correcting mis-lettering, and making a spelling correction. The text of the rule proposal is available on the Exchange's Web site ( *http://www.cboe.org/legal* ), at the Exchange's Office of the Secretary and at the Commission. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose CBOE proposes to make clean-up changes by deleting certain portions of rules containing an obsolete term, replacing a reference to “Nasdaq-100 Index Tracking Stock” with “PowerShares QQQ Trust,” correcting mis-lettering, and making a spelling correction. Deletion of Obsolete Term—“Board Broker”. In 2005, the Exchange submitted a rule filing in which the Exchange proposed, among other things, to delete rules or portions thereof pertaining to Board Brokers. 5 As explained in that filing, the Exchange had not used Board Brokers for approximately 22 years, and did not intend to use them in the future. Accordingly, the Exchange proposed to delete several rules or portions thereof pertaining to Board Brokers. 5 *See* Securities Exchange Act Release No. 52824 (November 22, 2005), 70 FR 72318 (December 2, 2005) (SR-CBOE-2005-69). In this filing, the Exchange explained that a Board Broker is an individual member, a nominee of a member organization or a member organization who or which is registered with the Exchange for the purposes of
(i)acting as a “broker's broker” for specified classes of options, at the post at which such classes of options are traded, by accepting and attempting to execute orders placed with him by other members, and
(ii)monitoring the market for such classes of options at the post. In the 2005 filing, the Exchange inadvertently omitted Rules 3.1, 6.6, 6.73, 7.6 and 8.7, which still contain references to Board Brokers. In this filing, the Exchange proposes to delete portions of the aforementioned rules that contain references to Board Brokers for the reasons stated in the 2005 filing. Also, the Exchange proposes to make a spelling correction to Interpretation and Policy .01 to Rule 6.6. Amend Rule 6.1.03 To Reflect Updated Exchange Traded Fund Name In connection with the March 21, 2007 transfer of sponsorship of the Nasdaq-100 Trust, the name of the trust was changed from the “Nasdaq-100 Index Tracking Stock” to the “PowerShares QQQ Trust” (“QQQQ”). The Exchange proposes to amend Interpretation and Policy .03 to Rule 6.1 to reflect the updated name of the QQQQ. Correct Mis-Lettering of Rule 4.11.02 The Exchange proposes to correct the mis-lettering of Interpretation and Policy .02 to Rule 4.11, which currently goes from c to e. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements provided under Section 6(b)(5) of the Act, 6 that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts and, in general, to protect investors and the public interest. 6 15 U.S.C. 78(f)(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposal. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 7 and Rule 19b-4(f)(6) thereunder, 8 because the foregoing rule does not
(i)Significantly affect the protection of investors or the public interest;
(ii)impose any significant burden on competition; and
(iii)become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. 7 15 U.S.C. 78s(b)(3)(A). 8 17 CFR 240.19b-4(f)(6). A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative prior to 30 days after the date of filing. 9 However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protections of investors and the public interest. 10 The Exchange has requested that the Commission waive the 30-day operative date, so that the Exchange's rules may be updated as soon as possible to reflect the clean-up changes proposed in this filing. The Commission believes that the proposed rule change does not raise any new regulatory issues. For this reason, the Commission designates the proposal to be operative upon filing with the Commission. 11 9 *Id.* 10 17 CFR 240.19b-4(f)(6)(iii). 11 For purposes of waiving the operative date of this proposal, the Commission has considered the proposed rule's impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-CBOE-2008-28 on the subject line. Paper Comments Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-CBOE-2008-28. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the CBOE. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2008-28 and should be submitted on or before April 15, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 12 12 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5918 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57525; File No. SR-FINRA-2008-005] Self-Regulatory Organizations: Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change Relating to Amendments to the Codes of Arbitration Procedure To Permit Submissions to Arbitrators After a Case Has Closed Under Limited Circumstances March 18, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on February 7, 2008, Financial Industry Regulatory Authority, Inc. (“FINRA”) (f/k/a National Association of Securities Dealers, Inc. (“NASD”)) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by FINRA. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing Rule 12905 of the NASD Code of Arbitration Procedure for Customer Disputes (“Customer Code”) and Rule 13905 of the NASD Code of Arbitration Procedure for Industry Disputes (“Industry Code”) to permit submissions to arbitrators after a case has closed only under the following circumstances:
(1)As ordered by a court;
(2)at the request of any party within 30 days of service of an award or notice that a matter has been closed, for ministerial matters; or
(3)if all parties agree and submit documents within 30 days of service of an award or notice that a matter has been closed. Below is the text of the proposed rule change. All the text is new. 12905. Submissions After a Case Has Closed
(a)Parties may not submit documents to arbitrator(s) in cases that have been closed except under the following limited circumstances: • As ordered by a court; • At the request of any party within 30 days of service of an award or notice that a matter has been closed, for ministerial matters such as miscalculation of figures, mistake in the description of any person, thing or property referred to in the award, or if the award is imperfect in a matter of form that does not affect the decision on the merits; or • If all parties agree and submit documents within 30 days of
(1)service of an award or
(2)notice that a matter has been closed.
(b)Parties must make requests under this rule in writing to the Director and must include the basis relied on under this rule for the request. The Director will forward the documents, along with any responses from other parties, to the arbitrators. Unless the arbitrators rule within 20 days after the Director forwards the documents to the arbitrators, the request shall be deemed denied. 13905. Submissions After a Case Has Closed
(a)Parties may not submit documents to arbitrator(s) in cases that have been closed except under the following limited circumstances: • As ordered by a court; • At the request of any party within 30 days of service of an award or notice that a matter has been closed, for ministerial matters such as miscalculation of figures, mistake in the description of any person, thing or property referred to in the award, or if the award is imperfect in a matter of form that does not affect the decision on the merits; or • If all parties agree and submit documents within 30 days of
(1)service of an award or
(2)notice that a matter has been closed.
(b)Parties must make requests under this rule in writing to the Director and must include the basis relied on under this rule for the request. The Director will forward the documents, along with any responses from other parties, to the arbitrators. Unless the arbitrators rule within 20 days after the Director forwards the documents to the arbitrators, the request shall be deemed denied. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. FINRA has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose FINRA is proposing to amend its Customer Code and Industry Code to adopt new rules to permit submissions to arbitrators after a case has closed only under limited circumstances. The proposed rule change would reduce attorneys' fees and other costs associated with responding to such submissions and would support the finality of arbitration awards issued in the forum. FINRA staff receives several requests each year from parties to submit documents to arbitrators (the panel) in cases that have been closed for long periods of time. Parties file these requests for a number of reasons, such as to obtain expungement relief that a party failed to request during the life of the case, to correct what a party perceives to be a mistake in the award, or to request that forum fee allocations be changed. Currently, the Customer and Industry Codes do not contain deadlines for such submissions and, indeed, do not address the matter. Therefore, staff forwards to panels the requests, along with any responses from other parties, regardless of the time that has elapsed since the case was closed. The panels rarely determine to reopen a matter. A case is deemed closed on the date FINRA serves an award or sends to the parties a letter notifying them that a case is closed (for example, by settlement). The absence of deadlines in the Customer and Industry Codes for submissions in closed cases can cause numerous problems. For example, parties might submit documents to the panel years after cases have closed. Also, arbitrators might have resigned from the roster or died by the time such submissions are made. Finally, parties might incur substantial attorneys' fees and other costs in responding to closed-case submissions. Potential legal issues are also present. Some states empower arbitrators to correct technical or mathematical errors in their awards, but only for a short period of time following the award's issuance, and courts may remand a matter to the original arbitrators when they vacate awards in whole or in part. 3 Beyond these examples, however, the law generally provides that the arbitrators' authority ends when the arbitrators render their decisions. 3 *See* N.Y. CPLR 7509, 7511 (McKinney 2008). To address the problems associated with submissions in closed cases, FINRA is proposing to permit submissions to arbitrators after a case has closed only under the following limited circumstances: • As ordered by a court; • At the request of any party within 30 days of service of an award or notice that a matter has been closed, for ministerial matters such as miscalculation of figures, mistake in the description of any person, thing or property referred to in the award, or if the award is imperfect in a matter of form that does not affect the decision on the merits; or • If all parties agree and submit documents within 30 days of
(1)service of an award or
(2)notice that a matter has been closed. The 30-day limit is in line with time limits allowed under many state laws 4 and would ensure that a majority of the arbitrators that served on the panel will be available to review the submissions. Under the second alternative, request by only one party, FINRA would follow its normal procedure of soliciting a response from the other parties before forwarding the request to the panel. 4 *Id.; see also* , CAL. CODE CIV. PROC. 1284 (2007); FLA. STAT. 682.10 (2007); TEX. CIV. PRAC. & REM. 171.054 (2007); VA. CODE ANN. 8.01-581.08 (2007). 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act, 5 which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. The proposed rule change would reduce the costs associated with responding to submissions in closed cases and support the finality of arbitration awards issued in the forum. 5 15 U.S.C. 78o-3(b)(6). B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the **Federal Register** or within such longer period
(i)as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or
(ii)as to which the self-regulatory organization consents, the Commission will:
(A)By order approve such proposed rule change, or
(B)Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-FINRA-2008-005 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-FINRA-2008-005. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of FINRA. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-FINRA-2008-005 and should be submitted on or before April 15, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 6 6 17 CFR 200.30-3(a)(12) . Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5964 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57529; File No. SR-FINRA-2008-009] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change to the Code of Arbitration Procedure for Customer Disputes and the Code of Arbitration Procedure for Industry Disputes To Amend the Chairperson Eligibility Requirements March 19, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) 1 and Rule 19b-4 thereunder, 2 notice is hereby given that Financial Industry Regulatory Authority, Inc. (“FINRA”) (f/k/a National Association of Securities Dealers, Inc. (“NASD”)) filed with the Securities and Exchange Commission (“SEC” or “Commission”) on March 12, 2008, the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by FINRA Dispute Resolution. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change FINRA Dispute Resolution is proposing to amend the chairperson eligibility requirements under NASD Rule 12400(c) of the Code of Arbitration Procedure for Customer Disputes (“Customer Code”) and NASD Rule 13400(c) of the Code of Arbitration Procedure for Industry Disputes (“Industry Code”). Below is the text of the proposed rule change. Proposed deletions are in brackets. 12400. Neutral List Selection System and Arbitrator Rosters (a)-(b) No change.
(c)Eligibility for Chairperson Roster In customer disputes, chairpersons must be public arbitrators. Arbitrators are eligible for the chairperson roster if they have completed chairperson training provided by NASD [or have substantially equivalent training or experience] and: [Remainder of the rule unchanged.] 13400. Neutral List Selection System and Arbitrator Rosters (a)-(b) No change.
(c)Eligibility for Chairperson Roster Arbitrators are eligible to serve as chairperson of panels submitted for arbitration under the Code if they have completed chairpersons training provided by NASD [or have substantially equivalent training or experience] and: [Remainder of the rule unchanged.] II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. FINRA has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose FINRA 3 proposes to amend the chairperson eligibility requirements under Rule 12400(c) of the Customer Code and Rule 13400(c) of the Industry Code. 3 Although some of the events referenced in this rule filing occurred prior to the formation of FINRA, the rule filing refers to FINRA throughout for simplicity. On January 24, 2007, the SEC approved the NASD Codes of Arbitration Procedure for Customer and Industry Disputes (collectively referred to as “Codes”). 4 The Codes reorganized the dispute resolution rules into separate procedural codes, simplified the language of the old NASD Code of Arbitration Procedure, codified current practices, and implemented several substantive changes. One such substantive change involved improving the arbitrator selection process by creating and maintaining a new roster of arbitrators who are qualified to serve as chairpersons. 4 *See* Securities Exchange Act Release No. 55158 (January 24, 2007); 72 FR 4574 (January 31, 2007) (File Nos. SR-NASD-2003-158 and SR-NASD-2004-011). The new Codes became effective on April 16, 2007. Under the Codes, arbitrators are eligible for the chairperson roster if they have completed chairperson training provided by FINRA or have substantially equivalent training or experience, and satisfy one of two remaining requirements of the rule. 5 In the rule filing proposing this change, FINRA explained that “substantially equivalent training or experience would include service as a judge or administrative hearing officer, chairperson training offered by another recognized dispute resolution forum, or the like. Decisions regarding whether particular training or experience other than FINRA chairperson training would qualify under this provision would be in the sole discretion of the Director.” 6 In referring to the “substantially equivalent training or experience” criterion (hereinafter, “substantially equivalent”), the proposal also stated that FINRA believed that the proposal would allow arbitrators of all professional backgrounds to qualify as chairpersons. 7 FINRA believed that this criterion would help ensure that the forum could meet the demands of the Codes concerning the new chairperson roster, while continuing to administer effectively the arbitrator selection process. 5 Rule 12400(c) of the Customer Code and Rule 13400(c) of the Industry Code. 6 *See* Securities Exchange Act Release No. 51856 (June 15, 2005); 70 FR 36442, at 36446 (June 23, 2005). 7 *Id* . In the year since the Codes were approved, FINRA has determined that the “substantially equivalent” criterion has not been essential to creating and maintaining the chairperson roster, and is, therefore, proposing to remove this criterion from the rule. FINRA notes that all arbitrators currently coded as chairpersons have completed the FINRA Chairperson Training course (chair training), 8 and the chair training has never been waived for an arbitrator claiming to satisfy the “substantially equivalent” criterion. FINRA believes that all arbitrators wishing to serve as chairpersons would benefit from the information contained in the chair training, which instructs arbitrators on the added responsibilities of arbitrators assuming the essential role of chairperson in the FINRA forum. Moreover, FINRA believes that removing the “substantially equivalent” criterion would make the chairperson eligibility standards more objective and uniform, thereby eliminating any perception that large numbers of arbitrators may be added to the chairperson roster without the benefit of the chair training. 8 The online Chairperson training course is $50 and is available at *http://www.finra.org/ArbitrationMediation/ResourcesforArbitratorsandMediators/ArbitratorTraining/ArbitratorTrainingPrograms/index.htm* (last visited, March 5, 2008). 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act, which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. FINRA believes that the proposed rule change would enhance investor confidence in the fairness and neutrality of FINRA's arbitration forum because the chairperson eligibility rules would become more objective and uniform. B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received by FINRA. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the **Federal Register** or within such longer period
(i)as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or
(ii)as to which the self-regulatory organization consents, the Commission will:
(A)By order approve such proposed rule change, or
(B)Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-FINRA-2008-009 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-FINRA-2008-009. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filings also will be available for inspection and copying at the principal office of FINRA. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to the File Number SR-FINRA-2008-009 and should be submitted on or before April 15, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 9 9 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5967 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57523; File No. SR-NYSE-2008-16] Self-Regulatory Organizations; New York Stock Exchange LLC.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rule 15 (Pre-Opening Indications) March 18, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on March 11, 2008, the New York Stock Exchange LLC (“NYSE” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared substantially by NYSE. NYSE filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b-4(f)(6) thereunder, 4 which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b-4(f)(6). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Exchange Rule 15 (Pre-Opening Indications) to:
(1)Utilize the previous day's closing price on the NYSE in arranging opening transactions;
(2)utilize the relevant price of the underlying security traded on its primary foreign market when arranging opening transactions for American Depositary Receipts (“ADRs”); 5 and
(3)revise the price change parameters. The text of the proposed rule change is available at *http://www.nyse.com,* the Exchange, and the Commission's Public Reference Room. 5 *See* the NYSE glossary, which defines an ADR as “[a] receipt that is issued by a U.S. depository bank which represents shares of a foreign corporation held by the bank. * * * ADRs are quoted in U.S. dollars and trade just like any other stock. * * *” II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NYSE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. NYSE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Exchange Rule 15 to:
(1)Utilize the previous day's closing price on the NYSE in arranging opening transactions;
(2)utilize the relevant price of the underlying security traded on its primary foreign market when arranging opening transactions for ADRs; and
(3)revise the price change parameters. Background NYSE Rule 15 was last amended on December 20, 2007 to re-establish procedures for the publication of pre-opening price information, according to the framework established by the national market system plan (“Linkage Plan”). 6 The Exchange sought to amend Rule 15 in response to customer and market participant requests for the pre-opening price information. 6 *See* Securities Exchange Act Release No. 57003 (December 20, 2007), 72 FR 73949 (December 28, 2007) (SR-NYSE-2007-112). The Linkage Plan became effective on October 1, 2006 and terminated on June 30, 2007. *See* Securities Exchange Act Release No. 54551 (September 29, 2006), 71 FR 59148 (October 6, 2006). Since the re-establishment of the procedures for the publication of pre-opening price information, the Exchange has reviewed the implementation of the rule and conferred with customers and market participants to assess the sufficiency and utility of the pre-opening price information currently being published. The Exchange seeks to amend NYSE Rule 15 to enable specialists to provide pre-opening information that is more accurate and indicative of the current state of the NYSE market. Use of NYSE Closing Price Currently, Rule 15 requires the specialist to publish a pre-opening price indication whenever the specialist, in arranging an opening transaction in any security, anticipates that the price of the opening transaction will be at a price which is different from the previous day's consolidated closing price by more than the “applicable price change.” The Exchange proposes to amend Rule 15 to use the NYSE closing price instead of the closing price of the Consolidated Tape. 6 Since the pre-opening indications of Rule 15 no longer provide intermarket indications, but are published solely as a means of providing information about trading on the NYSE, the Exchange believes it is more appropriate to use the NYSE closing price for the pre-opening indications to more precisely reflect the market conditions on the NYSE. Additionally, this proposed rule change is consistent with NYSE Rule 123D (Openings and Halts in Trading), which utilizes the NYSE previous closing price in determining the need for a mandatory indication. 6 *See* the NYSE glossary, which defines the Consolidated Tape as “A high-speed system that continuously provides the last sale price and volume of any securities transaction in listed stocks to the public. All trades in NYSE-listed securities, regardless of the market center on which such trades occur, are reported to and disseminated on the ticker system.” Modifications of Price Groupings When the procedures for the publication of pre-opening price information were reinstated, the current price groupings and corresponding price change parameters were broadened to more accurately address the volatility of today's markets. However, the Exchange believes that the recent amendment to the rule did not go far enough to distinguish the trading characteristics of the differently priced securities. The NYSE proposes to create five separate price groupings and related price change parameters. The Exchange believes that these smaller groupings and price change parameters better reflect the differences in price movement that occur based on the trading characteristics of the differently priced securities. The proposed five price groupings and their related applicable price change parameters are as follows: Exchange closing price Applicable price change (more than) Under $20.00 $0.50 $20-$49.99 $1.00 $50-$99.99 $2.00 $100-$500 $5.00 Above $500 1.5% Pre-Opening Price Indications, ADRs The Exchange further believes that it is necessary to have a different procedure for pre-opening indications of ADRs. Where the trading day of the underlying security in its primary foreign market for an ADR concludes after trading on the NYSE for the previous day but before trading on the NYSE has opened the next day, use of the closing price for the underlying security in the primary foreign market is a better indicator of the current value of the underlying security when arranging the opening transaction of an ADR on the NYSE. Similarly, in instances where the underlying security of an ADR is still trading on its primary foreign market at the time the specialist is arranging the opening of such ADR on the NYSE, use of the NYSE previous day's closing price may result in the specialist issuing a pre-opening indication that does not adequately reflect the current price of the underlying security. For example, assume the NYSE previous day's closing price of ADR XYZ was $28.00. On the following day the specialist is arranging the opening of the ADR XYZ on the NYSE. The primary foreign market for the underlying security XYZ is still open and the last sale price of the underlying security is equivalent to $30.00. If the specialist anticipates the opening price of ADR XYZ to be $28.49, according to Rule 15 as it exists today, the applicable price change that would require an indication is $.50; thus no indication would be required. However, this information is not reflective of the trading in the primary foreign market because the anticipated opening price is not on parity with underlying security XYZ trading on the primary foreign market. Pursuant to this proposed rule change, however, a specialist will look at the last sale price of the underlying security in the primary foreign market and issue a pre-opening indication if the anticipated opening price of the ADR is not on parity with the last sale price of the underlying security. The pre-opening indication will be based on the change in parity between the anticipated opening price of the ADR and the last sale price of the underlying security on the primary foreign market. Thus, using the prior example, since the last sale price of the underlying security XYZ is equivalent to $30.00, there is a difference in parity of $1.51; thus, the specialist would issue a pre-opening indication based on the change in parity. Accordingly, the Exchange proposes to amend Rule 15 to provide that in the case of an ADR, where the trading day of the underlying security in the primary foreign market concludes after trading on the NYSE for the previous day has ended, the specialists, when arranging an opening transaction on the NYSE, shall use the closing price of the primary foreign market of the underlying security to determine whether such opening transaction represents a change of more than the “applicable price change.” Where the primary foreign market on which the underlying security trades is open at the time of the opening on the Exchange, the specialist shall issue pre-opening indications based on a change from parity with the last sale price of the underlying security. The Exchange believes this proposed rule change will enable specialists to provide more accurate and timely market information to all Exchange customers and market participants. Additionally, this proposed rule change will further consistency of Exchange rules by aligning Rule 15 with how specialists determine the need for indications pursuant to other Exchange Rules. 2. Statutory Basis The Exchange believes that this proposal is consistent with Section 6(b) of the Act 7 in general, and furthers the objectives of Section 6(b)(5) of the Act 8 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. This proposed rule change to Exchange Rule 15 supports the system of a free and open market and serves to protect investors and the public interest by ensuring that specialists disseminate more accurate information based on the most currently available pricing information when arranging opening transactions on the NYSE. 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not:
(i)Significantly affect the protection of investors or the public interest;
(ii)impose any significant burden on competition; and
(iii)become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and public interest, it has become effective pursuant to Section 19(b)(3)(A) of the Act 9 and Rule 19b-4(f)(6) thereunder. 10 9 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 240.19b-4(f)(6). Normally, a proposed rule change filed under 19b-4(f)(6) may not become operative prior to 30 days after the date of filing. However, Rule 19b-4(f)(6)(iii) 11 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay set forth in Rule 19b-4(f)(6)(iii) under the Act. 12 The Commission believes that the earlier operative date is consistent with the protection of investors and the public interest because the proposed rule change permits the Exchange to immediately implement changes to its pre-opening that should enable the specialists to disseminate more accurate pre-opening information that is indicative of the current state of the NYSE market. For these reasons, the Commission designates the proposal to be operative upon filing with the Commission. 13 11 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires that a self-regulatory organization submit to the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Commission notes that NYSE has satisfied the five-day pre-filing notice requirement. 12 17 CFR 240.19b-4(f)(6)(iii). 13 For purposes only of waiving the 30-day operative delay of this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-NYSE-2008-16 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSE-2008-16. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of NYSE. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSE-2008-16 and should be submitted on or before April 15, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 14 14 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5916 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57521; File No. SR-NYSEArca-2008-27] Self-Regulatory Organizations; NYSE Arca, Inc; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Delete NYSE Arca Rule 6.88—Pacific Options Exchange Trading System March 18, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on March 13, 2008, NYSE Arca, Inc. (“Exchange” or “NYSE Arca”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by NYSE Arca. NYSE Arca has designated this proposal as one that neither significantly affects the protection of investors or the public interest nor imposes any significant burden on competition, under Section 19(b)(3)(A)(ii) of the Act, 3 and Rule 19b-4(f)(6) thereunder, 4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b-4(f)(6). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change NYSE Arca is proposing to amend its rules to delete NYSE Arca Rule 6.88 because it has determined that rule to be obsolete. The text of the proposed rule change is available on the Exchange's Web site, *http://www.nyse.com* , at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NYSE Arca included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. NYSE Arca has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Upon review of NYSE Arca Rule 6.88, the Exchange has determined that the rule is outdated and obsolete. This rule relates to options trading on the Pacific Options Exchange Trading System (“POETS”). The Exchange, however, no longer uses POETS for options trading. Therefore, the Exchange proposes to eliminate the text of this Rule and reserve the rule number for future use. POETS was the Exchange's automated trading system comprised of the options order routing system, the automatic execution system (Auto-Ex), the on-line limit order book system (Auto-Book), and the automatic market quote update system (Auto-Quote). All functionality contained in the POETS system has been completely decommissioned. Its replacement, PCX Plus, was fully implemented as of March 2005. 5 Since then, the Exchange decommissioned PCX Plus and implemented its current options trading platform, the OX system, during the third quarter of 2006. 6 At the time POETS was decommissioned and PCX Plus was implemented, rules pertaining to POETS were eliminated, as obsolete, from the Exchange's rule set. 7 Rule 6.88 inadvertently remained within the Exchange's rule set without purpose or regulatory impact. 5 *See* Securities Exchange Act Release No. 47838 (May 13, 2003), 68 FR 27129 (May 19, 2003) (SR-PCX-2002-36) (order approving establishment of the PCX Plus system). 6 *See* Securities Exchange Act Release No. 54238 (July 28, 2006), 71 FR 44758 (August 7, 2006) (SR-NYSEArca-2006-13) (order approving establishment of the OX trading platform system). 7 *See* Securities Exchange Act Release No. 53221 (February 3, 2006), 71 FR 6811 (February 9, 2006) (SR-PCX-2005-102) (order approving elimination of obsolete rules related to POETS). The Exchange has no plans to reactivate the POETS system; therefore, any rules governing its use are outdated and unnecessary. By eliminating the text of this rule, the Exchange hopes to eliminate any unnecessary confusion for its members. 2. Statutory Basis The Exchange believes that the proposal is consistent with Section 6(b) of the Act, 8 in general, and Section 6(b)(5) of the Act, 9 in particular, in that it will promote just and equitable principles of trade, facilitate transactions in securities, remove impediments to and perfect the mechanisms of a free and open market and a national market system, and protect investors and the public interest. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule does not
(i)Significantly affect the protection of investors or the public interest;
(ii)impose any significant burden on competition; and
(iii)become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, it has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder. 10 10 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to provide the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has fulfilled this requirement. The Exchange has asked the Commission to waive the 30-day operative delay in order to allow the Exchange to remove an obsolete rule without delay. The Commission believes such waiver is consistent with the protection of investors and the public interest because the existing rule regarding the POETS system is obsolete and serves no purpose related to the administration of the Exchange. 11 Waiver of the 30-day operative delay specified in Rule 19b-4(f)(6) will allow the Exchange to update its Rules without delay. For these reasons, the Commission designates the proposals to be operative upon filing with the Commission. 11 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File No. SR-NYSEArca-2008-27 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2008-27. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEArca-2008-27 and should be submitted on or before April 15, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 12 12 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5912 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57522; File No. SR-NYSEArca-2008-30)] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Rule 6.37B Pertaining to Market Maker Quotations March 18, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on March 14, 2008, NYSE Arca, Inc. (“NYSE Arca” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by NYSE Arca. The Exchange has filed the proposal as a “non-controversial” rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b-4(f)(6) thereunder, 4 which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b-4(f)(6). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change NYSE Arca proposes to amend NYSE Arca Rule 6.37B Market Maker Quotations—OX. The text of the proposed rule change is available at NYSE Arca, the Commission's Public Reference Room, and *http://www.nysearca.com.* II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NYSE Arca included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. NYSE Arca has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this rule change is to revise the review period the Exchange uses when determining a Market Maker's compliance with the 60% quoting obligations contained in NYSE Arca Rule 6.37B(c). The Exchange also proposes to add a provision to Rule 6.37B(c) that will deal with exceptions to Market Maker quoting obligations. Market Makers, other than Lead Market Makers (“LMM”), are required to provide continuous two-sided quotations throughout the trading day in their appointed issues for 60% of the time that the Exchange is open for trading in each issue. Compliance with this obligation is presently measured on a per-calendar-quarter basis. The Exchange proposes to reduce the review period from a quarterly basis down to a monthly basis. The Exchange believes that this change is consistent with a recently approved rule change for LMM quoting obligations. 5 The Exchange believes that the shorter time period will allow the NYSE Arca Options Surveillance Department to more effectively monitor a Market Maker's compliance with their quoting obligations. On occasion, a situation may arise where a Market Maker is unable to provide continuous quotations due to circumstances completely beyond his or her control. Accordingly, the Exchange proposes to amend Rule 6.37B(c) to state that if a technical failure or limitation of a system of the Exchange prevents a Market Maker from providing timely and accurate electronic quotes, the duration of such failure shall not be considered in determining whether the Market Maker has satisfied the 60% quoting standard. The Exchange may also take into consideration demonstrated legal or regulatory requirements or other mitigating circumstances that might prevent a Market Maker from providing continuous quotations. In order for the Exchange to consider any exceptions to quoting obligations, Market Makers must notify the Exchange promptly whenever circumstances arise that prevent them from providing continuous quotations. The Exchange notes that this proposed amendment is similar to NYSE Arca Rule 6.37B(b), which provides for limited exceptions to LMM quoting obligations. 5 *See* Securities Exchange Act Release No. 57186 (January 22, 2008), 73 FR 4931 (January 28, 2008) (SR-NYSEArca-2007-121). The Exchange also proposes minor technical changes to Rule 6.37B. The Exchange states that the terms “issue” and “class,” when used in the context of a Market Maker's Appointment, are virtually interchangeable words. However, for the sake of consistency within Rule 6.37B, the Exchange proposes to use just the term “issue.” Accordingly, wherever the term “class” is used, it will now read “issue.” The Exchange also proposes a minor change to the numbering of subsections within the Rule. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act, 6 in general, and furthers the objectives of Section 6(b)(5) of the Act, 7 in particular, because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. The Exchange believes that this rule change will create a more efficient procedure for the Exchange to monitor quoting obligations of Market Makers, while at the same time providing relief for these obligations when a situation arises that is completely beyond the control of the Market Maker. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule change does not:
(1)Significantly affect the protection of investors or the public interest;
(2)impose any significant burden on competition; and
(3)become operative for 30 days after the date of this filing, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and Rule 19b-4(f)(6) thereunder. 9 8 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b-4(f)(6). A proposed rule change filed under 19b-4(f)(6) normally may not become operative prior to 30 days after the date of filing. 10 However, Rule 19b-4(f)(6)(iii) 11 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because such waiver would allow the Exchange to implement the proposal without needless delay. The Commission notes that it recently approved a substantially similar NYSE Arca proposal pertaining to LMM quoting obligations. 12 For these reasons, the Commission designates the proposed rule change to be operative upon filing with the Commission. 13 10 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6)(iii) requires that a self-regulatory organization submit to the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied the five-day pre-filing notice requirement. 11 *Id.* 12 *See supra* note 5. 13 For the purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). At any time within 60 days of the filing of such proposed rule change the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-NYSEArca-2008-30 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2008-30. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of NYSE Arca. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEArca-2008-30 and should be submitted on or before April 15, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 14 14 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5915 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57520; File No. SR-OCC-2008-02] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Definition and Use of the Terms “Settlement Price” and “Final Settlement Price” March 18, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), 1 notice is hereby given that on January 24, 2008, The Options Clearing Corporation (“OCC”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which items have been prepared primarily by OCC. OCC filed the proposed rule change pursuant to Section 19(b)(3)(A)(i) of the Act 2 and Rule 19b-4(f)(1) 3 thereunder so that the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78s-1(b)(3)(A)(i). 3 17 CFR 240.19b-4(f)(1). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change amends the definition and use of the terms “settlement price” and “final settlement price” as applied to futures contracts cleared by OCC for the purpose of improving the definitions and establishing consistent usage. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, OCC included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. OCC has prepared summaries, set forth in sections (A), (B), and
(C)below, of the most significant aspects of such statements. 4 4 The Commission has modified parts of these statements.
(A)Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The primary purpose of the proposed rule change is to revise OCC's By-Laws and Rules to eliminate any inconsistencies in the use of the terms “settlement price” and “final settlement price” and to clarify the roles of OCC and of the exchanges on which futures are traded in determining the daily and if applicable intraday settlement price and the final settlement price of a series of futures contracts. OCC is also making one change in its rules to reflect a change in the services available to clearing members. The two key components of the proposed rule change involve the definition of “settlement price” and “final settlement price” as used in OCC's By-Laws and Rules and the location of the language governing the manner in which settlement prices are determined. Currently, the prices used to calculate daily or intraday variation payments are referred to simply as “settlement prices” rather than “interim settlement prices.” The term “settlement price” does not encompass the term “final settlement price,” which is separately defined to refer only to the price used to determine the value of a contract at maturity. There are provisions of OCC's By-Laws and Rules that apply equally to daily or intraday settlement prices and final settlement prices. Accordingly, OCC is revising the definition of “settlement price” to encompass both types of prices. The term “interim settlement price” will be used to refer to prices used to determine daily and intraday variation payments. In addition, the definition of “final settlement price” is being revised in recognition of the possibility that prices determined in the futures markets themselves, as opposed to prices determined in the cash markets for the underlying interests, may sometimes be used to determine the final settlement price. OCC is also moving the language regarding the establishment of the interim settlement price for futures from Rule 1301(d) to Article XII, Section 6 of OCC's By-Laws. OCC believes that this language more logically belongs in Article XII, which currently governs only the establishment of final settlement prices. Proposed Changes to By-Laws OCC is introducing the new term “interim settlement price” in Article I, Section 1 of its By-Laws with respect to futures to refer to what is currently defined simply as “settlement price” and will use the term “settlement price” to encompass both interim settlement prices and final settlement prices for futures. OCC is redefining and simplifying the term “final settlement price” in Article I, Section 1 of the By-Laws and eliminating the reference to “Exchange Rules,” which are relevant to some but not all determinations of the final settlement price and are referenced elsewhere in the By-Laws and Rules where relevant. The definition addresses what is meant by “final settlement price” with respect to a series of futures ( *i.e.* , the marking price, rate, level, value, or measure of the designated interest on the maturity date of such series). It further addresses the uses of the final settlement price ( *i.e.* , to calculate the final variation payment with respect to cash-settled futures and the purchase price of the underlying interest in respect of physically settled futures). The definition does not address the manner in which the final settlement price is determined, which is covered in Article XII, Section 6(b), as amended. While the final settlement price of a series of stock futures is normally determined on the basis of the value of the underlying stock at maturity, at least one futures exchange clearing through OCC consistently uses the value of the futures contract itself ( *i.e.* , the settlement price, on the maturity date as the basis for determining the final settlement price). Accordingly, in addition to the above changes, OCC is revising the term “final settlement price” to account for the use in some instances of the value of the futures contract rather than the value of the underlying interest in determining this price. OCC is making certain technical corrections to the definition of the term “maturity date.” OCC is modifying Article VI, Section 10(d) of OCC's By-Laws, which currently refers to the adjustment of the unit of trading and settlement price for a series of stock futures, to reflect OCC's current procedures under which one or the other of the unit of trading or settlement price but not both is subject to adjustment. OCC is also correcting certain erroneous references in this subsection. The term “settlement price” is used in various locations within Article VI, Section 19; Article XV, Section 3; and Article XX, Section 3 of OCC's By-Laws in a manner that is wholly unrelated to the settlement price for security futures. The word “cash” has been placed before the term “settlement price” in each these sections wherever the term appears. OCC is making a correction to Article XII, Section 1 by replacing the term “security future” with “future,” which includes both commodity and security futures. Article XII, Section 3 is revised to reflect OCC's current procedures under which the unit of trading or settlement price but not both may be adjusted in connection with stock splits, stock dividends, and similar corporate events. OCC is modifying Article XII, Sections 4, 4A, and 5 under which the terms “interim settlement price,” “final settlement price,” and “settlement price” are used in a manner consistent with their new or revised definitions. OCC is moving the language governing the manner in which interim settlement prices are determined from Rule 1301(d) to Article XII, Section 6(a) to precede the provision governing the determination of final settlement prices covered in Section 6(b). As a result of the transfer of the content of Rule 1301(d) to Article XII, Section 6, this section now governs the manner in which both interim settlement prices and final settlement prices are determined while Rule 1301 addresses only variation payments. In addition to moving the language of former Rule 1301(d) to Article XII, Section 6(a) of the By-Laws, OCC is modifying the language. The modifications make it clear that OCC determines the interim settlement price used to establish the amount of the required variation payment, but does so on the basis of an interim settlement price reported to OCC by the relevant exchange. A similar change is being made in Article XII, Section 6(b) and in Interpretation and Policy .01 to the section. Generally, OCC would simply adopt the price it receives from the exchange, but OCC has broad authority to disregard that price if it appears erroneous or otherwise defective. The changes also clarify OCC's responsibility in connection with settlement prices of series of security futures that are traded on more than one exchange. Proposed Changes to Rules OCC is deleting Rule 404, relating to its use of a give-up service provider, because OCC no longer has a relationship with a give-up service provider. OCC is redesignating Rule 1301(e) as Rule 1301(d) as a result of the transfer of former Rule 1301(d) to Article XII, Section 6 of the By-Laws. The portion of Rule 1301(e) governing the determination of final settlement prices is deleted as this subject is covered by Article XII, Section 6(b) of the By-Laws. Rule 1301 is also revised to make the use of the terms “interim settlement price,” “final settlement price,” and “settlement price” consistent with their new or revised definitions. The proposed rule change is consistent with the purposes and requirements of Section 17A of Act because it is designed to promote the prompt and accurate clearance and settlement of transactions in futures, to foster cooperation and coordination with persons engaged in the clearance and settlement of such transactions, to remove impediments to and perfect the mechanism of a national system for the prompt and accurate clearance and settlement of such transactions, and in general to protect investors and the public interest. The proposed rule change accomplishes this purpose by establishing consistent usage for the terms “settlement price” and “final settlement price” and by revising the definition of “final settlement price” to account for the use in some instances of the prices determined in the futures markets themselves rather than the prices determined in the cash markets to determine the final settlement price for futures. The proposed rule change is not inconsistent with the By-laws and Rules of OCC, including those proposed to be amended.
(B)Self-Regulatory Organization's Statement on Burden on Competition OCC does not believe that the proposed rule change would impose any burden on competition.
(C)Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received from Members, Participants, or Others Written comments were not and are not intended to be solicited with respect to the proposed rule change, and none have been received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(i) of the Act 5 and Rule 19b-4(f)(1) 6 promulgated thereunder because the proposal constitutes an interpretation with respect to the meaning, administration, or enforcement of an existing rule of OCC. At any time within sixty days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 5 15 U.S.C. 78s(b)(3)(A)(i). 6 17 CFR 240.19b-4(f)(1). IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-OCC-2008-02 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-OCC-2008-02. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of OCC. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-OCC-2008-02 and should be submitted on or before April 15, 2008. For the Commission by the Division of Trading and Markets, pursuant to delegated authority. 7 7 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5911 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-57528; File No. SR-Phlx-2008-18] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Relating to the Imposition of Fines for Minor Rule Plan Violations March 19, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on March 12, 2008, the Philadelphia Stock Exchange, Inc. (“Phlx” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Phlx. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and to approve the proposal on an accelerated basis. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to adopt Phlx Options Floor Procedure Advice (“OFPA”) F-35, Violations of Exercise and Exercise Advice Rules for Noncash-Settled Equity Option Contracts, to add a summary fine schedule for Expiring Exercise Declaration or Contrary Exercise Advice violations regarding noncash settled equity options. 3 The Exchange also proposes to modify Phlx Rule 970, Floor Practice Advices: Violations, Penalties, and Procedures, 4 to increase the maximum permissible fine to $5,000 for a violation of a Floor Procedure Advice. The text of the proposed rule change is available at the Exchange, the Commission's Public Reference Room, and *http://www.Phlx.com/exchange/phlx-rule-fil.htm* . 3 These declarations or advices indicate, among other things, whether at expiration the holder of an in-the-money noncash settled equity option intends to waive The Options Clearing Corporation's (“OCC”) Exercise-by-Exception procedure or exercise the option. *See* Phlx Rule 1042. 4 Phlx Rule 970 sets forth the criteria for the imposition of fines (currently not to exceed $2,500) on any member, member organization, or any partner, officer, director, or person employed by or associated with any member or member organization, for any violation of a Floor Procedure Advice, which violation the Exchange shall have determined is minor in nature (known as “Minor Rule Plan Fines”). The fines are imposed in lieu of commencing a “disciplinary proceeding” as that term is used in Phlx Rules 960.1-960.12. Such Minor Rule Plan Fines are subject to Rule 19d-1 under the Act. *See* Securities Exchange Act Release No. 45421 (February 7, 2002), 67 FR 6961 (February 14, 2002) (SR-Phlx-2001-114). II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Phlx included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to
(a)implement new OFPA F-35 to establish a fine schedule for contrary exercise advice violations, and
(b)expand Phlx Rule 970 to allow fines not to exceed $5,000, for the purpose of increasing and strengthening the sanctions imposed by the Exchange's Minor Rule Plan (“MRP”). The Exchange believes that establishing the specified fines with respect to individual members and member organizations with a 24-month rolling surveillance period should serve as an effective deterrent to such violative conduct. The Exchange also believes that failure to submit exercise instructions is the type of objective requirement that is easy and appropriate to administer. In addition, the Exchange, as a member of the Intermarket Surveillance Group (“ISG”), 5 as well as certain other self-regulatory organizations (“SROs”) executed and filed on October 29, 2007, with the Commission, a final version of an Agreement pursuant to Section 17(d) of the Act (the “17d-2 Agreement”). 6 As set forth in the 17d-2 Agreement, the SROs have agreed that their respective rules concerning the filing of Expiring Exercise Declarations, also referred to as Contrary Exercise Advices, of options contracts, are common rules. As a result, the proposal to amend Phlx's MRP will further result in consistency in sanctions among the SROs that are signatories to the 17d-2 Agreement concerning Contrary Exercise Advice violations. 5 ISG is a regulatory information-sharing organization comprised of all U.S. national securities exchanges and national securities associations, most U.S. futures exchanges, and certain non-U.S. exchanges and associations trading securities and related products. 6 *See* Letter to Richard Holley, Division of Market Regulation, Securities and Exchange Commission, from Nyieri Nazarian, Assistant General Counsel, American Stock Exchange, October 29, 2007. 2. Statutory Basis The Exchange believes that this proposed rule change is consistent with Section 6(b) of the Act, 7 in general, and furthers the objectives of Section 6(b)(5) of the Act, 8 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). Specifically, the Exchange believes that the proposed rule change should strengthen its ability to carry out its oversight responsibilities as an SRO and reinforce its surveillance and enforcement functions. Additionally, the Exchange believes that the proposed rule change should promote consistency in minor rule violation fines and respective SRO reporting obligations as set forth pursuant to Rule 19d-1(c)(2) under the Act, 9 which governs minor rule violation plans. 9 17 CFR 240.19d-1(c)(2). B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received. III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form at *http://www.sec.gov/rules/sro.shtml* ; or • Send an e-mail to *rule-comments@sec.gov* . Please include File No. SR-Phlx-2008-18 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-Phlx-2008-18. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site at *http://www.sec.gov/rules/sro.shtml* . Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-Phlx-2008-18 and should be submitted on or before April 15, 2008. IV. Commission's Findings and Order Granting Accelerated Approval of Proposed Rule Change After careful consideration, the Commission finds that the Exchange's proposed rule change is consistent with the requirements of Section 6 of the Act, 10 and the rules and regulations thereunder applicable to a national securities exchange. 11 In particular, the Commission believes that the proposed rule change is consistent with Section 6(b)(5) of the Act, 12 which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices; to promote just and equitable principles of trade; to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities; to remove impediments to and perfect the mechanism of a free and open market and a national market system; and, in general, to protect investors and the public interest. 10 15 U.S.C. 78f. 11 In approving this proposed rule change, the Commission has considered its impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 12 15 U.S.C. 78f(b)(5). The Commission further believes that Phlx's proposal to sanction individuals and member organizations who fail to submit Advice Cancel or exercise instructions in a timely manner is consistent with Sections 6(b)(1) and 6(b)(6) of the Act, 13 which require that the rules of an exchange enforce compliance with, and provide appropriate discipline for, violations of Commission and Exchange rules. In addition, the Commission finds that the proposal is consistent with the public interest, the protection of investors, or otherwise in furtherance of the purposes of the Act, as required by Rule 19d-1(c)(2) under the Act, 14 which governs minor rule violation plans. The Commission believes that the proposed rule change should strengthen the Exchange's ability to carry out its oversight and enforcement responsibilities as an SRO in cases where full disciplinary proceedings are unsuitable in view of the minor nature of the particular violation. 13 15 U.S.C. 78f(b)(1) and 78f(b)(6). 14 17 CFR 240.19d-1(c)(2). In approving this proposed rule change, the Commission in no way minimizes the importance of compliance with the Phlx's rules and all other rules subject to the imposition of fines under the MRP. The Commission believes that the violation of any SRO rules, as well as Commission rules, is a serious matter. However, the MRP provides a reasonable means of addressing rule violations that do not rise to the level of requiring formal disciplinary proceedings, while providing greater flexibility in handling certain violations. The Commission expects that the Phlx will continue to conduct surveillance with due diligence and make a determination based on its findings, on a case-by-case basis, whether a fine of more or less than the recommended amount is appropriate for a violation under the Phlx MRP or whether a violation requires formal disciplinary action. The Phlx has requested that the Commission find good cause for approving the proposed rule change prior to the thirtieth day after publication of the notice thereof in the **Federal Register** . The Commission hereby grants that request. The Phlx's proposal is substantially similar to those of other options exchanges, which previously have been approved by the Commission. 15 The Commission does not believe that Phlx's proposal raises any novel regulatory issues, and no comments were received on any of these earlier proposals. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act, 16 for approving the proposed rule change prior to the thirtieth day after publication of the notice thereof in the **Federal Register** . 15 *See, e.g.* , Securities Exchange Act Release No. 57314 (February 12, 2008), 73 FR 9377 (February 20, 2008) (SR-CBOE-2007-143). 16 15 U.S.C. 78s(b)(2). V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act 17 and Rule 19d-1(c)(2) under the Act, 18 that the proposed rule change (SR-Phlx-2008-18), be, and hereby is, approved and declared effective on an accelerated basis. 17 15 U.S.C. 78s(b)(2). 18 17 CFR 240.19d-1(c)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 19 19 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(44). Florence E. Harmon, Deputy Secretary. [FR Doc. E8-5966 Filed 3-24-08; 8:45 am] BILLING CODE 8011-01-P SMALL BUSINESS ADMINISTRATION Notice; Small Business Administration; Interest Rates The Small Business Administration publishes an interest rate called the optional “peg” rate (13 CFR 120.214) on a quarterly basis. This rate is a weighted average cost of money to the government for maturities similar to the average SBA direct loan. This rate may be used as a base rate for guaranteed fluctuating interest rate SBA loans. This rate will be 4.375 (4 3/8 ) percent for the April-June quarter of FY 2008. Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for any third party lender's commercial loan which funds any portion of the cost of a 504 project (see 13 CFR 120.801) shall be 6% over the New York Prime rate or, if that exceeds the maximum interest rate permitted by the constitution or laws of a given State, the maximum interest rate will be the rate permitted by the constitution or laws of the given State. James W. Hammersley, Acting Director, Office of Financial Assistance. [FR Doc. E8-5946 Filed 3-24-08; 8:45 am] BILLING CODE 8025-01-P SOCIAL SECURITY ADMINISTRATION Privacy Act of 1974; as Amended; New System of Records and New Routine Use Disclosures AGENCY: Social Security Administration (SSA). ACTION: Proposed New System of Records and Proposed Routine Uses. SUMMARY: In accordance with the Privacy Act (5 U.S.C. 552a(e)(4) and (e)(11)), we are issuing public notice of our intent to establish a new system of records entitled *Identity Protection Program
(IPP)System, 60-0360,* and routine uses applicable to this system of records. Hereinafter, we will refer to the proposed system of records as the *IPP System.* The proposed system of records will consist of information used to provide enhanced protection for employees who reasonably believe that they may be at risk of injury or other harm by the disclosure of their work location and telephone number information, supporting documentation, and the dispositions of the requests for program participation. We invite public comments on this proposal. DATES: We filed a report of the proposed new system of records and proposed routine use disclosures with the Chairman of the Senate Committee on Homeland Security and Governmental Affairs, the Chairman of the House Committee on Government Reform, and the Director, Office of Information and Regulatory Affairs, Office of Management and Budget
(OMB)on March 17, 2008. The proposed system of records and routine uses will become effective on April 26, 2008, unless we receive comments warranting it not to become effective. ADDRESSES: Interested individuals may comment on this publication by writing to the Executive Director, Office of Public Disclosure, Office of the General Counsel, Social Security Administration, 3-A-6 Operations Building, 6401 Security Boulevard, Baltimore, Maryland 21235-6401. All comments received will be available for public inspection at the above address. FOR FURTHER INFORMATION CONTACT: Ms. Edie McCracken, Social Insurance Specialist, Office of Public Disclosure, Office of the General Counsel, Social Security Administration, 3-A-6 Operations Building, 6401 Security Boulevard, Baltimore, Maryland 21235, telephone at
(410)965-6117, e-mail address at *edie.mccracken@ssa.gov.* SUPPLEMENTARY INFORMATION: I. Background and Purpose of the Proposed New System of Records Entitled the IPP System A. General Background We approved a recommendation from a national committee on security to implement a nationwide program to enhance the safety and security of our employees who are victims, or potential victims, of domestic violence. It was intended to safeguard the anonymity of at-risk employees when requests for their work location and/or phone number were received from individuals posing a threat to their personal safety, by delaying the disclosure of the information when certain conditions were met. This process would have entailed a change in our policy that permitted such information requests to be honored. While no action was ever taken on the recommendation, we amended our rules to reflect a similar approach that strengthened our privacy and disclosure rules to better safeguard employees who reasonably believe that they may be at risk of injury or other harm by the disclosure of their work location and telephone number. B. Collection and Maintenance of the Data for the Proposed New System of Records Entitled the IPP System SSA will collect and maintain information that will be housed in the *IPP System* from employees who have requested program participation in the IPP from SSA officials. The information maintained in this system of records will be maintained in paper and electronic formats and will include information on all IPP requests made by employees. This system contains such information as:
(1)The employee's name, personal identification number (PIN), supporting documentation collected during the process, number of requests made, whether those requests have been granted or denied;
(2)the employee's locator information and telephone number;
(3)the number of requests by Agency component that have been approved, and the number denied;
(4)the reasons for denial; and
(5)amount of time to process each request. We will retrieve information from the proposed system of records by using the employee's name and/or PIN. Thus, the *IPP System* constitutes a system of records under the Privacy Act. II. Proposed Routine Use Disclosures of Data Maintained in the Proposed IPP System A. Proposed Routine Use Disclosures We are proposing to establish routine uses of information that will be maintained in the proposed *IPP System* as discussed below. 1. To the Office of the President for the purpose of responding to an individual pursuant to an inquiry received from that individual or from a third party on his or her behalf. We will disclose information under this routine use only in situations in which an individual may contact the Office of the President, seeking that Office's assistance in a matter relating to information contained in this system of records. We will disclose information when the Office of the President makes an inquiry and indicates that it is acting on behalf of the individual whose record is requested. 2. To a congressional office in response to an inquiry from that office made at the request of the subject of a record. We will disclose information under this routine use only in situations in which an individual may ask his or her congressional representative to intercede in a matter relating to information contained in this system of records. We will disclose information when the congressional representative makes an inquiry and indicates that he or she is acting on behalf of the individual whose record is requested. 3. To the Department of Justice (DOJ), a court or other tribunal, or another party before such tribunal when:
(a)SSA, or any component thereof; or
(b)any SSA employee in his/her official capacity; or
(c)any SSA employee in his/her individual capacity where DOJ (or SSA where it is authorized to do so) has agreed to represent the employee; or
(d)the United States or any agency thereof where SSA determines that the litigation is likely to affect the operations of SSA or any of its components, is a party to the litigation or has an interest in such litigation, and SSA determines that the use of such records by DOJ, a court or other tribunal, or another party before such tribunal is relevant and necessary to the litigation, provided, however, that in each case, SSA determines that such disclosure is compatible with the purpose for which the records were collected. We will disclose information under this routine use only as necessary to enable DOJ to effectively defend SSA, its components or employees in litigation involving the proposed new system of records and ensure that courts and other tribunals have appropriate information. 4. To the Equal Employment Opportunity Commission (EEOC or Commission) when requested in connection with investigations into alleged or possible discriminatory practices in the Federal sector, examination of Federal affirmative employment programs, compliance by Federal agencies with the Uniform Guidelines on Employee Selection Procedures, or other functions vested in the Commission. We will disclose information to the EEOC, as necessary, to assist in reassessing individuals' requests for program participation, to assist in investigations into alleged or possible discriminatory practices in the Federal sector, to combat and prevent fraud, waste and abuse under the Rehabilitation Act of 1973, and for other functions vested in the Commission. 5. To the Federal Labor Relations Authority, the General Counsel, the Federal Mediation and Conciliation Service, the Federal Service Impasses Panel, or an arbitrator when information is requested in connection with investigations of allegations of unfair labor practices, matters before an arbitrator or the Federal Impasses Panel. We will disclose information about employees under this routine use, as necessary, to the Federal Labor Relations Authority, the General Counsel, the Federal Mediation and Conciliation Service, and the Federal Service Impasses Panel, or an arbitrator in which all or part of the allegations involve the Agency's providing program participation for at-risk employees. 6. To the Office of Personnel Management, Merit Systems Protection Board, or the Office of the Special Counsel, in connection with appeals, special studies of the civil service and other merit systems, review of those agencies' rules and regulations, investigation of alleged or possible prohibited personnel practices, and other such functions promulgated in 5 U.S.C. chapter 12, or as may be authorized by law. We will disclose information under this routine use, as necessary, to the Office of Personnel Management, Merit Systems Protection Board or the Office of the Special Counsel in which all or part of the allegations in the appeal or action involve the Agency's providing program participation for at-risk employees or disapproving such participation. 7. To contractors and other Federal agencies, as necessary, for the purpose of assisting SSA in the efficient administration of its programs. We will disclose information under this routine use only in situations in which SSA may enter into a contractual or similar agreement with a third party to assist in accomplishing an Agency function relating to this system of records. We will disclose information under this routine use only in situations in which SSA may enter into a contractual agreement or similar agreement with a third party to assist in accomplishing an Agency function relating to this system of records. 8. To student volunteers, individuals working under a personal services contract, and other individuals performing functions for SSA, who technically do not have the status of Agency employees, when they are performing work for SSA, as authorized by law, and they need access to the records in order to perform their assigned Agency functions. Under certain Federal statutes, SSA is authorized to use the service of volunteers and participants in certain educational, training, employment and community service programs. Examples of such statutes and programs include: 5 U.S.C. 3111 regarding student volunteers and 42 U.S.C. 2753 regarding the College Work-Study Program. We contemplate disclosing information under this routine use only when SSA uses the services of these individuals and they need access to information in this system to perform their assigned Agency duties. 9. To the General Services Administration
(GSA)and the National Archives and Records Administration
(NARA)under 44 U.S.C. 2904 and 2906, as amended by the NARA Act of 1984, non-tax return information which is not restricted from disclosure by Federal law for use by those agencies in conducting records management studies. The Administrator of GSA and the Archivist of NARA are charged by 44 U.S.C. 2904, as amended, with promulgating standards, procedures and guidelines regarding record management and conducting records management studies. 44 U.S.C. 2906, as amended, provides that GSA and NARA are to have access to Federal agencies' records and that agencies are to cooperate with GSA and NARA. In carrying out these responsibilities, it may be necessary for GSA and NARA to have access to this system of records. In such instances, the routine use will facilitate disclosure. 10. To Federal, State, and local law enforcement agencies and private security contractors, as appropriate, information necessary: • To enable them to protect the safety of SSA employees and the security of the SSA workplace, and the operation of SSA facilities, or • To assist investigations or prosecutions with respect to activities that affect such safety and security or activities that disrupt the operation of SSA facilities. We will disclose information under this routine use to law enforcement agencies and private security contractors when information is needed to investigate, prevent, or respond to activities that jeopardize the security and safety of SSA employees or workplaces, or that otherwise disrupt the operation of SSA facilities. Information would also be disclosed to assist in the prosecution of persons charged with violating Federal or local law in connection with such activities. 11. To appropriate Federal, State, and local agencies, entities, and persons when
(1)we suspect or confirm that the security or confidentiality of information in this system of records has been compromised;
(2)we determine that as a result of the suspected or confirmed compromise there is a risk of harm to economic or property interests, identity theft or fraud, or harm to the security or integrity of this system or other systems or programs of SSA that rely upon the compromised information; and
(3)we determine that disclosing the information to such agencies, entities, and persons is necessary to assist in our efforts to respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm. SSA will use this routine use to respond only to those incidents involving an unintentional release of its records. This routine use specifically permits the disclosure of SSA information in connection with response and remediation efforts in the event of an unintentional release of Agency information, otherwise known as a “data security breach.” This routine use serves to protect the interests of the people whose information is at risk by allowing us to take appropriate steps to facilitate a timely and effective response to a data security breach. It will also help us to improve our ability to prevent, minimize, or remedy any harm that may result from a compromise of data maintained in these systems of records. B. Compatibility of Proposed Routine Uses The Privacy Act (5 U.S.C. 552a(b)(3)) and our disclosure regulations (20 CFR part 401) permit us to disclose information under a published routine use for a purpose that is compatible with the purpose for which we collected the information. Section 401.150(c) of SSA Regulations permits us to disclose information under a routine use where necessary to carry out SSA programs. SSA Regulations at section 401.120 provide that we will disclose information when a law specifically requires the disclosure. The proposed routine uses numbered 1 through 9, 11 and 12 above will ensure efficient administration of the *IPP System;* the disclosure that would be made under routine use number 10 is required by Federal law. Thus, all routine uses are appropriate and meet the relevant statutory and regulatory criteria. III. Records Storage Medium and Safeguards for the Proposed New System Entitled the IPP System SSA will maintain information in the *IPP System* in electronic and paper form. Only authorized SSA and contractor personnel who have a need for the information in the performance of their official duties will be permitted access to the information. We will safeguard the security of the information by requiring the use of access codes to enter the computer system that will maintain the data and will store computerized records in secured areas that are accessible only to employees who require the information to perform their official duties. Any paper maintained records will be kept in locked cabinets or in otherwise secure areas. Furthermore, SSA employees having access to SSA databases maintaining personal information must sign a sanction document annually, acknowledging their accountability for making unauthorized access to or disclosure of such information. Contractor personnel having access to data in the proposed system of records will be required to adhere to SSA rules concerning safeguards, access and use of the data. SSA and contractor personnel having access to the data in this system will be informed of the criminal penalties of the Privacy Act for unauthorized access to or disclosure of information maintained in this system. *See* 5 U.S.C. 552a(i)(1). IV. Effect of the Proposed New System of Records entitled the IPP System The proposed new system of records will maintain only that information which is necessary to safeguard the anonymity of employees requesting participation in the IPP so that these individuals can perform the functions of their employment positions without fear for their physical safety or other harm. Security measures will be employed that protect access to and preclude unauthorized disclosure of records in this system of records. Additionally, SSA will adhere to all applicable provisions of the Privacy Act, Social Security Act and other Federal statutes that govern our use and disclosure of the information. Thus, we do not anticipate that the proposed system of records will have an unwarranted effect on the privacy of the individuals that will be covered by the *IPP System.* Dated: March 17, 2008. Michael J. Astrue, Commissioner. SYSTEM NUMBER: 60-0360 System name: Identity Protection Program
(IPP)System. System classification: None. System location: Social Security Administration, Office of Human Resources, 6401 Security Boulevard, Baltimore, Maryland 21235. Categories of individuals covered by the system: SSA Employees who have requested participation in the IPP. Categories of records in the system: This system consists of a variety of records concerning participation in the IPP. In addition to the employee's name, this system includes information such as the employee's personal identification number (PIN), locator information, telephone number, component, documentation submitted to support the reason for the request for program participation, as well as any subsequent documentation provided by the employee; employee's written request to be removed from the IPP; the number of IPP requests that have been granted or denied by employee; the number of IPP requests that have been granted or denied by Agency component; reason for program participation request denial; and length of time taken to process each request for program participation. Authority for maintenance of the system: Sections 205 and 702(a)(5) of the Social Security Act (42 U.S.C. 405, 902(a)(5)). Purpose(s): Information in the *IPP System* is used to: • Provide a means of collecting information about SSA employees who reasonably believe that they may be at risk of injury or other harm by the disclosure of their work location and telephone number. • Provide a standard approach to ensuring the safety of SSA employees who reasonably believe that they may be at risk of injury or other harm by the disclosure of their work location and telephone number. The information in this system will be used to establish participation in the *IPP.* We will establish program participation when an employee has made known his/her request for program participation and all of the required documentation has been submitted. Routine uses of records maintained in the system, including categories of users and the purpose of such uses: Disclosures may be made for routine uses as indicated below.
(1)To the Office of the President for the purpose of responding to an individual pursuant to an inquiry received from that individual or from a third party on his or her behalf.
(2)To a congressional office in response to an inquiry from that office made at the request of the subject of a record.
(3)To the Department of Justice (DOJ), a court or other tribunal, or another party before such tribunal when:
(a)SSA, or any component thereof; or
(b)Any SSA employee in his/her official capacity; or
(c)Any SSA employee in his/her individual capacity where DOJ (or SSA where it is authorized to do so) has agreed to represent the employee; or
(d)The United States or any agency thereof where SSA determines that the litigation is likely to affect the operations of SSA or any of its components, is a party to the litigation or has an interest in such litigation, and SSA determines that the use of such records by DOJ, a court or other tribunal, or another party before such tribunal is relevant and necessary to the litigation, provided, however, that in each case, SSA determines that such disclosure is compatible with the purpose for which the records were collected.
(4)To the Equal Employment Opportunity Commission (EEOC or Commission) when requested in connection with investigations into alleged or possible discriminatory practices in the Federal sector, examination of Federal affirmative employment programs, compliance by Federal agencies with the Uniform Guidelines on Employee Selection Procedures, or other functions vested in the Commission.
(5)To the Federal Labor Relations Authority, the General Counsel, the Federal Mediation and Conciliation Service, the Federal Service Impasses Panel, or an arbitrator when information is requested in connection with the investigations of allegations of unfair labor practices, matters before an arbitrator or the Federal Impasses Panel.
(6)To the Office of Personnel Management, Merit Systems Protection Board, or the Office of the Special Counsel, in connection with appeals, special studies of the civil service and other merit systems, review of those agencies' rules and regulations, investigation of alleged or possible prohibited personnel practices, and other such functions promulgated in 5 U.S.C. Chapter 12, or as may be authorized by law.
(7)To contractors and other Federal agencies, as necessary, for the purpose of assisting SSA in the efficient administration of its programs. We contemplate disclosing information under this routine use only in situations in which SSA may enter into a contractual or similar agreement with a third party to assist in accomplishing an Agency function relating to this system of records.
(8)To student volunteers, individuals who work under a personal services contract, and other individuals performing functions for SSA, who technically do not have the status of Agency employees, when they are performing work for SSA, as authorized by law, and they need access to the records in order to perform their assigned Agency functions.
(9)To the General Services Administration
(GSA)and National Archives and Records Administration
(NARA)under 44 U.S.C. § 2904 and § 2906, as amended by the NARA Act of 1984, non-tax return information which is not restricted from disclosure by Federal law for use by those agencies in conducting records management studies.
(10)To Federal, State, and local law enforcement agencies and private security contractors, as appropriate, information necessary: • To enable them to protect the safety of SSA employees and customers, the security of the SSA workplace, the operation of SSA facilities, or • To assist investigations or prosecutions with respect to activities that affect such safety and security or activities that disrupts the operation of SSA facilities.
(11)To appropriate Federal, State, and local agencies, entities, and persons when
(1)we suspect or confirm that the security or confidentiality of information in this system of records has been compromised;
(2)we determine that as a result of the suspected or confirmed compromise there is a risk of harm to economic or property interests, identity theft or fraud, or harm to the security or integrity of this system or other systems or programs of SSA that rely upon the compromised information; and
(3)we determine that disclosing the information to such agencies, entities, and persons is necessary to assist in our efforts to respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm. SSA will use this routine use to respond only to those incidents involving an unintentional release of its records. Policies and practices for storing, retrieving, accessing, retaining and disposing of records in the system: Storage: Records in this system are maintained and stored in both electronic and paper form. Retrievability: Records in this system will be retrieved by the employee's PIN and/or name. Safeguards: Security measures include the use of access codes to enter the computer system which will maintain the data, the storage of computerized records in secured areas that are accessible only to employees who require the information in performing their official duties. Manually maintained records will be kept in locked cabinets or in otherwise secure areas. SSA employees who have access to the data will be informed of the criminal penalties of the Privacy Act for unauthorized access to or disclosure of information maintained in the system. *See* 5 U.S.C. 552a(i)(1). Contractor personnel and/or alternate employees having access to data in the system of records will be required to adhere to SSA rules concerning safeguards, access and use of the data. Retention and disposal: The records are maintained in SSA headquarters Office of Human Resources or regional Servicing Personnel Offices. They are disposed of in accordance with item 17a of the National Archives and Records Administration General Records Schedule 1. System manager(s): Associate Commissioner, Office of Personnel, Social Security Administration, 6401 Security Boulevard, Baltimore, Maryland 21235-6401. Notification procedure(s): An individual can determine if this system contains a record about him/her by writing to the system manager at the above address and providing his/her name, SSN or other information that may be in the system of records that will identify him/her. An individual requesting notification of records in person should provide the same information, as well as provide an identity document, preferably with a photograph, such as a driver's license. If an individual does not have any identification documents sufficient to establish his/her identity, the individual must certify in writing that he/she is the person claimed to be and that he/she understands that knowing and willful request for, or acquisition of, a record pertaining to another individual under false pretenses is a criminal offense. If notification is requested by telephone, an individual must verify his/her identity by providing identifying information that parallels the record to which notification is being requested. Individuals providing insufficient identifying information by telephone will be required to submit a request in writing or in person. If an individual is requesting information by telephone on behalf of another individual, the subject individual must be connected with SSA and the requesting individual in the same phone call. SSA will establish the subject individual's identity (his/her name, PIN, address, date of birth and place of birth along with one other piece of information such as mother's maiden name) and ask for his/her consent in providing information to the requesting individual. If a request for notification is submitted by mail, an individual must include a notarized statement to SSA to verify his/her identity or must certify in the request that he/she is the person claimed to be and that he/she understands that knowing and willful request for, or acquisition of, a record pertaining to another individual under false pretenses is a criminal offense. These procedures are in accordance with SSA Regulations (20 CFR 401.45). Record access procedure(s): Same as Notification procedure(s). Requesters also should reasonably specify the record contents they are seeking. These procedures are in accordance with SSA Regulations (20 CFR 401.40). Contesting record procedure(s): Same as Notification procedure(s). Requesters should also reasonably identify the record, specify the information they are contesting, and state the corrective action sought and the reasons for the correction, with supporting justification, showing how the record is untimely, incomplete, inaccurate, or irrelevant. These procedures are in accordance with SSA Regulations (20 CFR 401.65). Record source categories: Information in this system is obtained from information collected from SSA employees and officials. Systems exempt from certain provisions of the Privacy Act: None. [FR Doc. E8-6066 Filed 3-24-08; 8:45 am] BILLING CODE 4191-02-P DEPARTMENT OF STATE [Public Notice: 6149] 30-Day Notice of Proposed Information Collection: DS-10, Birth Affidavit, OMB No. 1405-0132 ACTION: Notice of request for public comment and submission to OMB of proposed collection of information. SUMMARY: The Department of State has submitted the following information collection request to the Office of Management and Budget
(OMB)for approval in accordance with the Paperwork Reduction Act of 1995. • *Title of Information Collection:* Birth Affidavit. • *OMB Control Number:* 1405-0132. • *Type of Request:* Revision of a currently approved collection. • *Originating Office:* Bureau of Consular Affairs, CA/PPT/FO/FC. • *Form Number:* DS-10. • *Respondents:* Individuals or Households. • *Estimated Number of Respondents:* 154,850. • *Estimated Number of Responses:* 154,850. • *Average Hours Per Response:* 15 minutes. • *Total Estimated Burden:* 38,713 hours. • *Frequency:* On occasion. • *Obligation to Respond:* Required to obtain or retain a benefit. DATES: Submit comments to the Office of Management and Budget
(OMB)for up to 30 days from March 25, 2008. ADDRESSES: Direct comments and questions to Katherine Astrich, the Department of State Desk Officer in the Office of Information and Regulatory Affairs at the Office of Management and Budget (OMB), who may be reached at 202-395-4718. You may submit comments by any of the following methods: • *E-mail: kastrich@omb.eop.gov.* You must include the DS form number, information collection title, and OMB control number in the subject line of your message. • *Mail (paper, disk, or CD-ROM submissions):* Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW., Washington, DC 20503. • *Fax:* 202-395-6974. FOR FURTHER INFORMATION CONTACT: You may obtain copies of the proposed information collection and supporting documents from Steven J. Jelinski, who may be reached at 202-663-2468 or at *jelinskis@state.gov* . SUPPLEMENTARY INFORMATION: We are soliciting public comments to enable the Department to do the following: • Assess whether the proposed information collection is necessary to properly perform our functions. • Evaluate the accuracy of our estimate of the burden of the proposed collection, including the validity of the methodology and assumptions used. • Enhance the quality, utility, and clarity of the information to be collected. • Minimize the reporting burden on those who are to respond. Abstract of Proposed Collection The Birth Affidavit is submitted in conjunction with an application for a U.S. passport and used by Passport Services to collect information for the purpose of establishing the citizenship of a passport applicant who has not submitted an acceptable United States birth certificate with his/her passport application. Methodology When needed, a Birth Affidavit is completed at the time a U.S. citizen applies for a U.S. passport. Dated: March 5, 2008. Ann Barrett, Deputy Assistant Secretary, Bureau of Consular Affairs, Department of State. [FR Doc. E8-6014 Filed 3-24-08; 8:45 am] BILLING CODE 4710-06-P DEPARTMENT OF STATE [Public Notice: 6150] 30-Day Notice of Proposed Information Collection: DS-60, Affidavit Regarding a Change of Name, OMB Control Number 1405-0133 ACTION: Notice of request for public comment and submission to OMB of proposed collection of information. SUMMARY: The Department of State has submitted the following information collection request to the Office of Management and Budget
(OMB)for approval in accordance with the Paperwork Reduction Act of 1995. • *Title of Information Collection:* Affidavit Regarding a Change of Name. • *OMB Control Number:* 1405-0133. • *Type of Request:* Revision of a Currently Approved Collection. • *Originating Office:* Bureau of Consular Affairs, CA/PT/FO/FC. • *Form Number:* DS-60. • *Respondents:* Individuals and Households. • *Estimated Number of Respondents:* 202,920. • *Estimated Number of Responses:* 202,920. • *Average Hours Per Response:* 15 minutes. • *Total Estimated Burden:* 50,730 hours. • *Frequency:* On occasion. • *Obligation to Respond:* Required to obtain or retain a benefit. DATES: Submit comments to the Office of Management and Budget
(OMB)for up to 30 days from March 25, 2008. ADDRESSES: Direct comments and questions to Katherine Astrich, the Department of State Desk Officer in the Office of Information and Regulatory Affairs at the Office of Management and Budget (OMB), who may be reached at 202-395-4718. You may submit comments by any of the following methods: • *E-mail: kastrich@omb.eop.gov* . You must include the DS form number, information collection title, and OMB control number in the subject line of your message. • *Mail (paper, disk, or CD-ROM submissions):* Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW., Washington, DC 20503. • *Fax:* 202-395-6974 FOR FURTHER INFORMATION CONTACT: You may obtain copies of the proposed information collection and supporting documents from Steven J. Jelinski, 2100 Pennsylvania Avenue, NW., Washington DC 20037, who may be reached at
(202)663-2468, or at *jelinskis@state.gov* . SUPPLEMENTARY INFORMATION: We are soliciting public comments to enable the Department to do the following: • Assess whether the proposed information collection is necessary to properly perform our functions. • Evaluate the accuracy of our estimate of the burden of the proposed collection, including the validity of the methodology and assumptions used. • Enhance the quality, utility, and clarity of the information to be collected. • Minimize the reporting burden on those who are to respond, Abstract of Proposed Collection The Affidavit Regarding a Change of Name is submitted in conjunction with an application for a U.S. passport. It is used by Passport Services to collect information for the purpose of establishing that a passport applicant, who has adopted a new name without formal court proceedings, or by marriage, has publicly and exclusively used the adopted name over a long period of time (in general five years). Methodology When needed, the Affidavit Regarding a Change of Name is completed at the time a U.S. citizen applies for a U.S. passport. Dated: March 5, 2008. Ann Barrett, Deputy Assistant Secretary for Passport Services, Bureau of Consular Affairs, Department of State. [FR Doc. E8-6015 Filed 3-24-08; 8:45 am] BILLING CODE 4710-06-P DEPARTMENT OF STATE [Public Notice 6146] Culturally Significant Objects Imported for Exhibition Determinations: “Classically Greek: Coins and Bank Notes From Antiquity to Today” SUMMARY: Notice is hereby given of the following determinations: Pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. 2459), Executive Order 12047 of March 27, 1978, the Foreign Affairs Reform and Restructuring Act of 1998 (112 Stat. 2681, *et seq.* ; 22 U.S.C. 6501 note, *et seq.* ), Delegation of Authority No. 234 of October 1, 1999, Delegation of Authority No. 236 of October 19, 1999, as amended, and Delegation of Authority No. 257 of April 15, 2003 [68 FR 19875], I hereby determine that the objects to be included in the exhibition “Classically Greek: Coins and Bank Notes from Antiquity to Today,” imported from abroad for temporary exhibition within the United States, are of cultural significance. The objects are imported pursuant to loan agreements with the foreign owners or custodians. I also determine that the exhibition or display of the exhibit objects at the Smithsonian Institution, Washington, DC, from on or about April 10, 2008, until on or about June 10, 2008, and at possible additional exhibitions or venues yet to be determined, is in the national interest. Public Notice of these Determinations is ordered to be published in the **Federal Register** . FOR FURTHER INFORMATION CONTACT: For further information, including a list of the exhibit objects, contact Carol B. Epstein, Attorney-Adviser, Office of the Legal Adviser, U.S. Department of State (telephone: 202-453-8048). The address is U.S. Department of State, SA-44, 301 4th Street, SW., Room 700, Washington, DC 20547-0001. Dated: March 18, 2008. C. Miller Crouch, Principal Deputy Assistant Secretary for Educational and Cultural Affairs, Department of State. [FR Doc. E8-6017 Filed 3-24-08; 8:45 am] BILLING CODE 4710-05-P DEPARTMENT OF TRANSPORTATION Federal Railroad Administration Petition for Waiver of Compliance In accordance with Part 211 of Title 49 Code of Federal Regulations (CFR), notice is hereby given that the Federal Railroad Administration
(FRA)received a request for a waiver of compliance with certain requirements of its safety standards. The individual petition is described below; including the party seeking relief, the regulatory provisions involved, the nature of the relief being requested, and the petitioner's arguments in favor of relief. Riverport Railroad, LLC (Waiver Petition Docket Number FRA-2008-0028) The Riverport Railroad, LLC (RVPR), a Class III railroad, seeks a waiver of compliance from the requirements of Part 223—Safety Glazing Standards 49 CFR 223.11 Requirements for existing locomotives. Specifically, RVPR has petitioned FRA for a waiver for three
(3)60-ton 500 horsepower diesel electric locomotives numbered 4029, 1251, and 1273. These locomotives were built for the Department of Defense
(DoD)by Baldwin-Lima-Hamilton in 1953-54, and remanufactured by DoD circa 1987-90. RVPR operates these locomotives on a terminal/switching railroad at the former Savanna [IL] Army Ordnance Depot, presently controlled by the Jo Daviess/Carroll County Local Redevelopment Authority. RVPR operates at speeds of 10 miles per hour (or less) storing cars for customers, and servicing a railcar repair facility. RVPR states that all adjoining land to the railroad is controlled by itself, or privately owned and access controlled. All trackage is enclosed, and there are no overhead structures or bridges from where objects could be thrown. Interchange to the general system is accomplished with BNSF Railway on five interchange tracks at Robinson Spur, Illinois. Interested parties are invited to participate in these proceedings by submitting written views, data, or comments. FRA does not anticipate scheduling a public hearing in connection with these proceedings since the facts do not appear to warrant a hearing. If any interested party desires an opportunity for oral comment, they should notify FRA, in writing, before the end of the comment period and specify the basis for their request. All communications concerning these proceedings should identify the appropriate docket number (e.g., Waiver Petition Docket Number FRA-2008-0028) and may be submitted by any of the following methods: • *Web site: http://www.regulations.gov.* Follow the online instructions for submitting comments. • *Fax:* 202-493-2251. • *Mail:* Docket Operations Facility, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., W12-140, Washington, DC 20590. • *Hand Delivery:* 1200 New Jersey Avenue, SE., Room W12-140, Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. Communications received within 45 days of the date of this notice will be considered by FRA before final action is taken. Comments received after that date will be considered as far as practicable. All written communications concerning these proceedings are available for examination during regular business hours (9 a.m.-5 p.m.) at the above facility. All documents in the public docket are also available for inspection and copying on the Internet at the docket facility's Web site at *http://www.regulations.gov* . Anyone is able to search the electronic form of any written communications and comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the **Federal Register** published on April 11, 2000 (Volume 65, Number 70; Pages 19477-78). Issued in Washington, DC, on March 19, 2008. Grady C. Cothen, Jr., Deputy Associate Administrator for Safety Standards and Program Development. [FR Doc. E8-6006 Filed 3-24-08; 8:45 am] BILLING CODE 4910-06-P DEPARTMENT OF TRANSPORTATION National Highway Traffic Safety Administration [Docket No. NHTSA-2008-0052] Decision that Certain Nonconforming Motor Vehicles are Eligible for Importation AGENCY: National Highway Traffic Safety Administration (NHTSA), Department of Transportation. ACTION: Notice of decision by NHTSA that certain nonconforming motor vehicles are eligible for importation. SUMMARY: This document announces decisions by NHTSA that certain motor vehicles not originally manufactured to comply with all applicable Federal motor vehicle safety standards (FMVSS) are eligible for importation into the United States because they are substantially similar to vehicles originally manufactured for importation into and/or sale in the United States and certified by their manufacturers as complying with the safety standards, and they are capable of being readily altered to conform to the standards or because they have safety features that comply with, or are capable of being altered to comply with, all applicable FMVSS. DATES: These decisions became effective on the dates specified in Annex A. FOR FURTHER INFORMATION CONTACT: Coleman Sachs, Office of Vehicle Safety Compliance, NHTSA (202-366-3151). SUPPLEMENTARY INFORMATION: Background Under 49 U.S.C. 30141(a)(1)(A), a motor vehicle that was not originally manufactured to conform to all applicable FMVSS shall be refused admission into the United States unless NHTSA has decided that the motor vehicle is substantially similar to a motor vehicle originally manufactured for importation into and/or sale in the United States, certified under 49 U.S.C. 30115, and of the same model year as the model of the motor vehicle to be compared, and is capable of being readily altered to conform to all applicable FMVSS. Where there is no substantially similar U.S.-certified motor vehicle, 49 U.S.C. 30141(a)(1)(B) permits a nonconforming motor vehicle to be admitted into the United States if its safety features comply with, or are capable of being altered to comply with, all applicable FMVSS based on destructive test data or such other evidence as NHTSA decides to be adequate. Petitions for eligibility decisions may be submitted by either manufacturers or importers who have registered with NHTSA pursuant to 49 CFR Part 592. As specified in 49 CFR 593.7, NHTSA publishes notice in the **Federal Register** of each petition that it receives, and affords interested persons an opportunity to comment on the petition. At the close of the comment period, NHTSA decides, on the basis of the petition and any comments that it has received, whether the vehicle is eligible for importation. The agency then publishes this decision in the **Federal Register** . NHTSA received petitions from registered importers to decide whether the vehicles listed in Annex A to this notice are eligible for importation into the United States. To afford an opportunity for public comment, NHTSA published notice of these petitions as specified in Annex A. The reader is referred to those notices for a thorough description of the petitions. No substantive comments were received in response to these notices. Based on its review of the information submitted by the petitioners, NHTSA has decided to grant the petitions. Vehicle Eligibility Number for Subject Vehicles The importer of a vehicle admissible under any final decision must indicate on the form HS-7 accompanying entry the appropriate vehicle eligibility number indicating that the vehicle is eligible for entry. Vehicle eligibility numbers assigned to vehicles admissible under this decision are specified in Annex A. Final Decision Accordingly, on the basis of the foregoing, NHTSA hereby decides that each motor vehicle listed in Annex A to this notice, which was not originally manufactured to comply with all applicable FMVSS, is either
(1)substantially similar to a motor vehicle manufactured for importation into and/or sale in the United States, and certified under 49 U.S.C. 30115, as specified in Annex A, and is capable of being readily altered to conform to all applicable FMVSS or
(2)has safety features that comply with, or are capable of being altered to comply with, all applicable Federal motor vehicle safety standards. Authority: 49 U.S.C. 30141(a)(1)(A), (a)(1)(B) and (b)(1); 49 CFR 593.8; delegations of authority at 49 CFR 1.50 and 501.8. Issued on: March 19, 2008. Claude H. Harris, Director, Office of Vehicle Safety Compliance. Annex A Nonconforming Motor Vehicles Decided to be Eligible for Importation 1. Docket No. NHTSA-2007-28262 Nonconforming Vehicles: 2005 Honda CR-V Multipurpose Passenger Vehicle. Substantially Similar U.S. Certified Vehicles: 2005 Honda CR-V Multipurpose Passenger Vehicle. Notice of Petition Published at: 72 FR 30428 (May 31, 2007). Vehicle Eligibility Number: VSP-489 (effective date July 11, 2007). 2. Docket No. NHTSA-2007-28261 Nonconforming Vehicles: 1986-1987 Volkswagen Transporter Multipurpose Passenger Vehicle. Substantially Similar U.S. Certified Vehicles: 1986-1987 Volkswagen Vanagon Multipurpose Passenger Vehicle. Notice of Petition Published at: 72 FR 30424 (May 31, 2007). Vehicle Eligibility Number: VSP-490 (effective date July 11, 2007). 3. Docket No. NHTSA-2007-28263 Nonconforming Vehicles: 2006 Harley Davidson FX, FL, & XL Motorcycle Substantially Similar U.S. Certified Vehicles: 2006 Harley Davidson FX, FL, & XL Motorcycle. Notice of Petition Published at: 72 FR 30425 (May 31, 2007). Vehicle Eligibility Number: VSP-491 (effective date July 11, 2007). 4. Docket No. NHTSA-2007-28264 Nonconforming Vehicles: 2003 Kawasaki VN1500-P1/P2 Motorcycle. Substantially Similar U.S. Certified Vehicles: 2003 Kawasaki VN1500-P1/P2 Motorcycle. Notice of Petition Published at: 72 FR 30429 (May 31, 2007). Vehicle Eligibility Number: VSP-492 (effective date July 11, 2007). 5. Docket No. NHTSA-2007-28531 Nonconforming Vehicles: 2004 Hyundai XG350 Passenger Car. Substantially Similar U.S. Certified Vehicles: 2004 Hyundai XG350 Passenger Car. Notice of Petition Published at: 72 FR 35541 (June 28, 2007). Vehicle Eligibility Number: VSP-494 (effective date August 14, 2007). 6. Docket No. NHTSA-2007-0006 Nonconforming Vehicles: 2000-2001 Moto Guzzi California Motorcycles. Substantially Similar U.S. Certified Vehicles: 2000-2001 Moto Guzzi California Motorcycles. Notice of Petition Published at: 72 FR 59591 (October 22, 2007). Vehicle Eligibility Number: VSP-495 (effective date November 28, 2007). 7. Docket No. NHTSA-2007-0005 Nonconforming Vehicles: 2004-2005 Vespa LX and PX Model Motorcycles. Substantially Similar U.S. Certified Vehicles: 2004-2005 Vespa LX and PX Model Motorcycles. Notice of Petition Published at: 72 FR 59588 (October 22, 2007). Vehicle Eligibility Number: VSP-496 (effective date November 28, 2007). 8. Docket No. NHTSA-2007-0004 Nonconforming Vehicles: 1999-2007 Yamaha Drag Star 1100 Motorcycles. Substantially Similar U.S. Certified Vehicles: 1999-2007 Yamaha V Star 1100 Motorcycles. Notice of Petition Published at: 72 FR 59586 (October 22, 2007). Vehicle Eligibility Number: VSP-497 (effective date November 28, 2007). 9. Docket No. NHTSA-2007-0007 Nonconforming Vehicles: 1988 Ducati 851 Motorcycles. Substantially Similar U.S. Certified Vehicles: 1988 Ducati 851 Motorcycles. Notice of Petition Published at: 72 FR 59584 (October 22, 2007). Vehicle Eligibility Number: VSP-498 (effective date November 28, 2007). 10. Docket No. NHTSA-2007-0009 Nonconforming Vehicles: 2007 Harley Davidson FXSTC Soft Tail Custom Motorcycles. Substantially Similar U.S. Certified Vehicles: 2007 Harley Davidson FXSTC Soft Tail Custom Motorcycles. Notice of Petition Published at: 72 FR 59590 (October 22, 2007). Vehicle Eligibility Number: VSP-499 (effective date November 28, 2007). 11. Docket No. NHTSA-2007-0008 Nonconforming Vehicles: 1993 Ducati 888 Motorcycles. Substantially Similar U.S. Certified Vehicles: 1993 Ducati 888 Motorcycles. Notice of Petition Published at: 72 FR 59589 (October 22, 2007). Vehicle Eligibility Number: VSP-500 (effective date November 28, 2007). 12. Docket No. NHTSA-2007-0036 Nonconforming Vehicles: 1992 Alfa Romeo Spyder Passenger Cars. Substantially Similar U.S. Certified Vehicles: 1992 Alfa Romeo Spyder Passenger Cars. Notice of Petition Published at: 72 FR 65833 (November 23, 2007). Vehicle Eligibility Number: VSP-503 (effective date January 16, 2008). 13. Docket No. NHTSA-2007-0021 Nonconforming Vehicles: 2000-2003 BMW C1 Motorcycles. Because there are no substantially similar U.S.-certified version 2000-2003 BMW C1 Motorcycles, the petitioner sought import eligibility under 49 U.S.C. 30141(a)(1)(B). Notice of Petition Published at: 72 FR 63652 (November 9, 2007). Vehicle Eligibility Number: VCP-40 (effective date January 16, 2008). [FR Doc. E8-6074 Filed 3-24-08; 8:45 am] BILLING CODE 4910-59-P DEPARTMENT OF TRANSPORTATION National Highway Traffic Safety Administration [Docket No. NHTSA-2008-0048; Notice 1] Hyundai Motor Company, Receipt of Petition for Decision of Inconsequential Noncompliance Hyundai Motor Company (Hyundai), has determined that certain vehicles that it manufactured during the period beginning July 14, 2006 through November 23, 2007, did not fully comply with paragraph S9.5 of 49 CFR 571.225 (Federal Motor Vehicle Safety Standards (FMVSS) No. 225 *Child Restraint Anchorage Systems.* Hyundai has filed an appropriate report pursuant to 49 CFR Part 573, *Defect and Noncompliance Responsibility and Reports.* Pursuant to 49 U.S.C. 30118(d) and 30120(h) (see implementing rule at 49 CFR part 556), Hyundai has petitioned for an exemption from the notification and remedy requirements of 49 U.S.C. Chapter 301 on the basis that this noncompliance is inconsequential to motor vehicle safety. This notice of receipt of Hyundai's petition is published under 49 U.S.C. 30118 and 30120 and does not represent any agency decision or other exercise of judgment concerning the merits of the petition. Affected are approximately 115,000 model years 2007 and 2008 Hyundai Elantra passenger cars produced beginning July 14, 2006 through November 23, 2007. Paragraph S9.5 of 49 CFR 571.225 requires in pertinent part that: S9.5 Marking and conspicuity of the lower anchorages. Each vehicle shall comply with S9.5(a) or (b).
(a)Above each bar installed pursuant to S4, the vehicle shall be permanently marked with a circle:
(1)That is not less than 13 mm in diameter;
(2)That is either solid or open, with or without words, symbols or pictograms, provided that if words, symbols or pictograms are used, their meaning is explained to the consumer in writing, such as in the vehicle's owners manual; and
(3)That is located such that its center is on each seat back between 50 and 100 mm above or on the seat cushion 100(±)25 mm forward of the intersection of the vertical transverse and horizontal longitudinal planes intersecting at the horizontal centerline of each lower anchorage, as illustrated in Figure 22. The center of the circle must be in the vertical longitudinal plane that passes through the center of the bar (±25 mm).
(4)The circle may be on a tag.
(b)The vehicle shall be configured such that the following is visible: Each of the bars installed pursuant to S4, or a permanently attached guide device for each bar. The bar or guide device must be visible without the compression of the seat cushion or seat back, when the bar or device is viewed, in a vertical longitudinal plane passing through the center of the bar or guide device, along a line making an upward 30 degree angle with a horizontal plane. Seat backs are in the nominal design riding position. The bars may be covered by a removable cap or cover, provided that the cap or cover is permanently marked with words, symbols or pictograms whose meaning is explained to the consumer in written form as part of the owner's manual. Hyundai explained its belief that paragraph S9.5 of FMVSS No. 225 requires that above each child restraint lower anchorage the vehicle shall be permanently marked with; a circle that is not less than 13 mm in diameter, that is either solid or open, with or without words, symbols or pictograms, provided that if words, symbols or pictograms are used, their meaning is explained to the consumer in writing, such as in the vehicle's owner's manual. Hyundai also explained that the owner's manuals of the affected vehicles contain a section titled “Child seat lower anchorages” that provides illustrations indicating the locations of the child restraint lower anchorages and written descriptions of the locations of the child restraint lower anchorages. Hyundai expressed its belief that the vehicles are properly marked, as required by paragraph S9.5 of FMVSS No. 225, with solid circles to identify the locations of the lower anchorages. Hyundai also stated that those solid circles contain pictograms, which represent a child seated in a child restraint. However, the owner's manuals provided with the affected vehicles do not contain a specific written explanation of the meaning of the pictogram that appears on the identification circles. Hyundai states that it believes the noncompliance is inconsequential to motor vehicle safety for the following reasons:
(1)When the requirements of paragraph S9.5 were first implemented over seven years ago, there may have been the potential to misunderstand the newly adopted child restraint lower anchorage identification mark. Therefore, NHTSA decided that a circle must be used, to standardize the symbol used to identify the anchorages, because standardization would likely increase user recognition of the symbol. The standardized circle has now appeared in almost every U.S. vehicle for more than seven years, allowing the public to gain familiarity with its purpose. In reference to the identification circles, FMVSS 225 No. S9.5 (a)(2) states that they may be “with or without words, symbols or pictograms”. If the identification circle does not contain any pictogram, it does not require a written explanation.
(2)The simple pictogram representing a child seated in a child restraint enhances the identification provided by the circle. The missing written explanation of the meaning of the pictogram does not affect the ability of a person to locate the lower anchorages, aided by the visual indication of the identification circles and the illustrations and written explanations provided in the owner's manual, and does not affect the ability of the lower anchorages to properly secure a child restraint. In addition, Hyundai stated that even though it will include a written explanation in future printings of the subject owner's manual, it strongly believes that the missing written explanation is an inconsequential noncompliance that poses no threat to the safety of its customers. Hyundai also states that no customer complaints have been received related to the lack of a written explanation of the meaning of the pictogram or any problems that may have resulted from the lack of a written explanation of the meaning of the pictogram. Hyundai requested that NHTSA consider its petition and grant an exemption from the recall requirements of the National Traffic and Motor Vehicle Safety Act on the basis that the noncompliance described above is inconsequential as it relates to motor vehicle safety. NHTSA notes that the statutory provisions (49 U.S.C. 30118(d) and 30120(h)) that permit manufacturers to file petitions for a determination of inconsequentiality allow NHTSA to exempt manufacturers only from the duties found in sections 30118 and 30120, respectively, to notify owners, purchasers, and dealers of a defect or noncompliance and to remedy the defect or noncompliance. Interested persons are invited to submit written data, views, and arguments on this petition. Comments must refer to the docket and notice number cited at the beginning of this notice and be submitted by any of the following methods: a. *By mail addressed to:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. b. By hand delivery to U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE, Washington, DC 20590. The Docket Section is open on weekdays from 10 a.m. to 5 p.m. except Federal Holidays. c. *Electronically:* by logging onto the Federal Docket Management System
(FDMS)Web site at: *http://www.regulations.gov/.* Follow the online instructions for submitting comments. Comments may also be faxed to 1-202-493-2251. Comments must be written in the English language, and be no greater than 15 pages in length, although there is no limit to the length of necessary attachments to the comments. If comments are submitted in hard copy form, please ensure that two copies are provided. If you wish to receive confirmation that your comments were received, please enclose a stamped, self-addressed postcard with the comments. Note that all comments received will be posted without change to * http:// www.regulations.gov, * including any personal information provided. Documents submitted to a docket may be viewed by anyone at the address and times given above. The documents may also be viewed on the Internet at *http://www.regulations.gov* by following the online instructions for accessing the dockets. DOT's complete Privacy Act Statement is available for review in the **Federal Register** published on April 11, 2000 (65 FR 19477-78). The petition, supporting materials, and all comments received before the close of business on the closing date indicated below will be filed and will be considered. All comments and supporting materials received after the closing date will also be filed and will be considered to the extent possible. When the petition is granted or denied, notice of the decision will be published in the **Federal Register** pursuant to the authority indicated below. *Comment closing date:* April 24, 2008. Authority: (49 U.S.C. 30118, 30120: delegations of authority at CFR 1.50 and 501.8) Issued on: March 19, 2008. Claude H. Harris, Director, Office of Vehicle Safety Compliance. [FR Doc. E8-6005 Filed 3-24-08; 8:45 am] BILLING CODE 4910-59-P DEPARTMENT OF THE TREASURY Executive Office for Asset Forfeiture; Proposed Collection; Comment Request ACTION: Notice and request for comments. SUMMARY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the Executive Office for Asset Forfeiture within the Department of the Treasury is soliciting comments concerning the Request for Transfer of Property Seized/Forfeited by a Treasury Agency, TD F 92-22.46. DATES: Written comments should be received on or before May 28, 2008 to be assured of consideration. ADDRESSES: Direct all written comments to the Executive Office for Asset Forfeiture, Attn: Jackie A. Jackson, 1341 G Street 9th Floor NW., Washington, DC 20220. Telephone:
(202)622-2755. E-Mail Address: *Jackie.Jackson@DO.Treas.gov.* FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the form(s) and instructions should be directed to the Executive Office for Asset Forfeiture, Attn: Jackie A. Jackson, 1341 G Street 9th Floor NW., Washington, DC 20220. Telephone:
(202)622-2755. E-Mail Address: *Jackie.Jackson@DO.Treas.gov.* SUPPLEMENTARY INFORMATION: *Title:* Request for Transfer of Property Seized/Forfeited by a Treasury Agency, TD F 92-22.46 *OMB Number:* 1505-0152. *Form Number:* TD F 92-22.46. *Abstract:* The form was developed to capture the minimum amount of data necessary to process the application for equitable sharing benefits. Only one form is required per seizure. If a law enforcement agency does not make this one time application for benefits under the equitable sharing process, the agency will not benefit from the forfeiture process. *Current Actions:* This is a notice for the continued use of the established form. There are several changes to the form or instructions. *Type of Review:* Extension (with changes). *Proposed Changes:* At the top of the form add a line for Recipient/Requesting Agency Case Number. In section II—Add a Line to collect the E-mail Address of the Agency Contact Person. *Affected Public:* Federal, State and local law enforcement agencies participating in the Treasury asset sharing program. *Estimated Number of Respondents:* 5,000. *Estimated Time Per Respondent:* 30 Minutes. *Estimated Total Annual Burden Hours:* 2,500. Request for Comments Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a)Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
(b)the accuracy of the agency's estimate 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. Eric E. Hampl, Director, Executive Office for Asset Forfeiture. [FR Doc. E8-5974 Filed 3-24-08; 8:45 am] BILLING CODE 4810-25-P DEPARTMENT OF THE TREASURY Internal Revenue Service [CO-49-88] Proposed Collection; Comment Request for Regulation Project AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. SUMMARY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning an existing final regulation, CO-49-88 (TD 8546), Limitations on Corporate Net Operating Loss (§ 1.382-6). DATES: Written comments should be received on or before May 27, 2008 to be assured of consideration. ADDRESSES: Direct all written comments to Glenn P. Kirkland, Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the regulations should be directed to Carolyn N. Brown at Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224, or at
(202)622-6688, or through the Internet at *Carolyn.N.Brown@irs.gov.* SUPPLEMENTARY INFORMATION: *Title:* Limitations on Corporate Net Operating Loss. *OMB Number:* 1545-1381. *Regulation Project Number:* CO-49-88. *Abstract:* This regulation provides rules for the allocation of a loss corporation's taxable income or net operating loss between the periods before and after ownership change under section 382 of the Internal Revenue Code, including an election to make the allocation based on a closing of the books as of the change date. *Current Actions:* There is no change to this existing regulation. *Type of Review:* Extension of currently approved collection. *Affected Public:* Business or other for-profit organizations. *Estimated Number of Respondents:* 2,000. *Estimated Time per Respondent:* 0.1 hours. *Estimated Total Annual Burden Hours:* 200. The following paragraph applies to all of the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. *Request for Comments:* Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a)Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
(b)the accuracy of the agency's estimate 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: March 13, 2008. Glenn P. Kirkland, IRS Reports Clearance Officer. [FR Doc. E8-5941 Filed 3-24-08; 8:45 am] BILLING CODE 4830-01-P DEPARTMENT OF THE TREASURY Internal Revenue Service [REG-209106-89] Proposed Collection; Comment Request for Regulation Project AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. SUMMARY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning an existing notice of proposed rulemaking, REG-209106-89, Changes With Respect to Prizes and Awards and Employee Achievement Awards (§ 1.74-1(c)). DATES: Written comments should be received on or before May 27, 2008 to be assured of consideration. ADDRESSES: Direct all written comments to Glenn P. Kirkland, Internal Revenue Service, Room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of regulation should be directed to Carolyn N. Brown,
(202)622-6688, Internal Revenue Service, Room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224, or through the Internet at *Carolyn.N.Brown@irs.gov.* SUPPLEMENTARY INFORMATION: *Title:* Changes With Respect to Prizes and Awards and Employee Achievement Awards. *OMB Number:* 1545-1100. *Regulation Project Number:* REG-209106-89 (formerly EE-84-89). *Abstract:* This regulation requires recipients of prizes and awards to maintain records to determine whether a qualifying designation has been made in accordance with section 74(b)(3) of the Internal Revenue Code. The affected public is prize and award recipients who seek to exclude the cost of a qualifying prize or award. *Current Actions:* There is no change to this existing regulation. *Type of Review:* Extension of a currently approved collection. *Affected Public:* Individuals or households. *Estimated Number of Respondents:* 5,100. *Estimated Time per Respondent:* 15 minutes. *Estimated Total Annual Burden Hours:* 1,275. The following paragraph applies to all of the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. *Request for Comments:* Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a)Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
(b)the accuracy of the agency's estimate 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: March 11, 2008. Glenn P. Kirkland, IRS Reports Clearance Officer. [FR Doc. E8-5942 Filed 3-24-08; 8:45 am] BILLING CODE 4830-01-P DEPARTMENT OF THE TREASURY Internal Revenue Service Proposed Collection; Comment Request for Form 8823 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. SUMMARY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition. DATES: Written comments should be received on or before May 27, 2008 to be assured of consideration. ADDRESSES: Direct all written comments to Glenn P. Kirkland, Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the form and instructions should be directed to Carolyn N. Brown,
(202)622-6688, Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224, or through the Internet at *Carolyn.N.Brown@irs.gov.* SUPPLEMENTARY INFORMATION: *Title:* Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition. *OMB Number:* 1545-1204. *Form Number:* 8823. *Abstract:* Under Internal Revenue Code section 42(m)(1)(B)(iii), state housing credit agencies are required to notify the IRS of noncompliance with the low-income housing tax credit provisions. A separate form must be filed for each building that is not in compliance. The IRS uses this information to determine whether the low-income housing credit is being correctly claimed and whether there is any credit recapture. *Current Actions:* Form 8823 was revised, adding 17 line items. This change resulted in an increase of 82,600 hours; making the new burden hours 372,200. *Type of Review:* Revision of a currently approved collection. *Affected Public:* State or local government housing credit agencies. *Estimated Number of Respondents:* 20,000. *Estimated Time per Respondent:* 18 hrs., 37 min. *Estimated Total Annual Burden Hours:* 372,200. The following paragraph applies to all of the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. *Request for Comments:* Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a)Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
(b)the accuracy of the agency's estimate 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: March 12, 2008. Glenn P. Kirkland, IRS Reports Clearance Officer. [FR Doc. E8-5943 Filed 3-24-08; 8:45 am] BILLING CODE 4830-01-P DEPARTMENT OF THE TREASURY Internal Revenue Service Proposed Collection; Comment Request for Revenue Procedure 2002-15 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. SUMMARY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning Revenue Procedure 2002-15, Automatic Relief for Late Initial Entity Classification Elections—Check the Box. DATES: Written comments should be received on or before May 27, 2008 to be assured of consideration. ADDRESSES: Direct all written comments to Glenn Kirkland, Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for copies of the regulations should be directed to Allan Hopkins at Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224, or at
(202)622-6665, or through the Internet at *Allan.M.Hopkins@irs.gov.* SUPPLEMENTARY INFORMATION: *Title:* Automatic Relief for Late Initial Entity Classification Elections—Check the Box. *OMB Number:* 1545-1771. *Revenue Procedure Number:* Revenue Procedure 2002-15. *Abstract:* Revenue Procedure 2002-15 provides that, in certain circumstances, taxpayers whose initial entity classification election was filed late can obtain relief by filing Form 8832 and attaching a statement explaining that the requirements of the revenue procedure have been met. *Current Actions:* There are no changes being made to the revenue procedure at this time. *Type of Review:* Extension of a currently approved collection. *Affected Public:* Business or other for-profit organizations. *Estimated Number of Respondents:* 100. *Estimated Time per Respondent:* 1 hour. *Estimated Total Annual Burden Hours:* 100. The following paragraph applies to all the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. *Request for Comments:* Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a)Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
(b)the accuracy of the agency's estimate 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: March 11, 2008. Glenn Kirkland, IRS Reports Clearance Officer. [FR Doc. E8-5945 Filed 3-24-08; 8:45 am] BILLING CODE 4830-01-P DEPARTMENT OF THE TREASURY Internal Revenue Service [REG-209365-89] Proposed Collection; Comment Request for Regulation Project AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. SUMMARY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning an existing final regulation, Limitation on Passive Activity Losses and Credits—Treatment of Self-Charged Items of Income and Expense (Section 1.469-7(f)). DATES: Written comments should be received on or before May 27, 2008 to be assured of consideration. ADDRESSES: Direct all written comments to Glenn Kirkland, Internal Revenue Service, Room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for copies of the regulations should be directed to Allan Hopkins at Internal Revenue Service, Room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224, or at
(202)622-6665, or through the Internet at *Allan.M.Hopkins@irs.gov.* SUPPLEMENTARY INFORMATION: *Title:* Limitation on Passive Activity Losses and Credits—Treatment of Self-Charged Items of Income and Expense. *OMB Number:* 1545-1244. *Regulation Project Number:* REG-209365-89 (formerly PS-39-89). *Abstract:* Section 1.469-7(f)(1) of this regulation permits entities to elect to avoid application of the regulation in the event the passthrough entity chooses to not have the income from leading transactions with owners of interests in the entity recharacterized as passive activity gross income. The IRS will use this information to determine whether the entity has made a proper timely election and to determine that taxpayers are complying with the election in the taxable year of the election and subsequent taxable years. *Current Actions:* There is no change to this existing regulation. *Type of Review:* Extension of currently approved collection. *Affected Public:* Individuals and business or other for-profit organizations. *Estimated Number of Respondents:* 1,000. *Estimated Time per Respondent:* 6 minutes. *Estimated Total Annual Burden Hours:* 100. The following paragraph applies to all of the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. *Request for Comments:* Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a)Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
(b)the accuracy of the agency's estimate 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: March 11, 2008. Glenn Kirkland, IRS Reports Clearance Officer. [FR Doc. E8-5947 Filed 3-24-08; 8:45 am] BILLING CODE 4830-01-P DEPARTMENT OF THE TREASURY Internal Revenue Service [LR-1214] Proposed Collection; Comment Request For Regulation Project AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. SUMMARY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning an existing final regulation, LR-1214 (TD 7430), Discharge of Liens (§ 301.7425-3(b)(2)). DATES: Written comments should be received on or before May 27, 2008 to be assured of consideration. ADDRESSES: Direct all written comments to Glenn Kirkland, Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for copies of the information collection should be directed to Allan Hopkins, at
(202)622-6665, or at Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224, or through the Internet, at *Allan.M.Hopkins@irs.gov* . SUPPLEMENTARY INFORMATION: *Title:* Discharge of Liens. *OMB Number:* 1545-0854. *Regulation Project Number:* LR-1214. *Abstract:* The Internal Revenue Service needs this information in processing a request to sell property subject to a tax lien to determine if the taxpayer has equity in the property. This information will be used to determine the amount, if any, to which the tax lien attaches. *Current Actions:* There is no change to this existing regulation. *Type of Review:* Extension of a currently approved collection. *Affected Public:* Individuals, business or other for-profit organizations, and farms. *Estimated Number of Respondents:* 500. *Estimated Time per Respondent:* 24 minutes. *Estimated Total Annual Burden Hours:* 200. The following paragraph applies to all of the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. *Request for Comments:* Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a)Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
(b)the accuracy of the agency's estimate 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: March 11, 2008. Glenn Kirkland, IRS Reports Clearance Officer. [FR Doc. E8-5948 Filed 3-24-08; 8:45 am] BILLING CODE 4830-01-P DEPARTMENT OF THE TREASURY Internal Revenue Service [REG-105346-03] Proposed Collection: Comment Request for Regulation Project AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. SUMMARY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning proposed regulation, REG-105346-03, Partnership Equity for Services. DATES: Written comments should be received on or before May 27, 2008 to be assured of consideration. ADDRESSES: Direct all written comments to Glenn Kirkland, Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for copies of this regulation should be directed to Allan Hopkins, at
(202)622-6665, or at Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224, or through the Internet, at *Allan.M.Hopkins@irs.gov.* SUPPLEMENTARY INFORMATION: *Title:* Partnership Equity for Services. *OMB Number:* 1545-1947. *Regulation Project Number:* REG-105346-03. *Abstract:* The regulations provide that the transfer of a partnership interest in connection with the performance of services is subject to section 83 of the Code and provide rules for coordinating section 83 with partnership taxation principles. *Current Actions:* There is no change to this proposed regulation. *Type of Review:* Extension of a currently approved collection. *Affected Public:* Businesses or other for-profit organizations and individuals or households. *Estimated Number of Respondents:* 150,000. *Estimated Total Burden Hours:* 112,500. The following paragraph applies to all of the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. *Request for Comments:* Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a)Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
(b)the accuracy of the agency's estimate 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: March 11, 2008. Glenn Kirkland, IRS Reports Clearance Officer. [FR Doc. E8-5949 Filed 3-24-08; 8:45 am] BILLING CODE 4830-01-P DEPARTMENT OF THE TREASURY Internal Revenue Service Low Income Taxpayer Clinic Grant Program; Availability of 2008 Supplemental Grant Application Period AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice. SUMMARY: This document contains a Notice that the IRS has made available a supplemental period within which organizations in select geographic areas may apply for a Low Income Taxpayer Clinic
(LITC)matching grant for the remainder of the 2008 grant cycle (the 2008 grant cycle runs January 1, 2008, through December 31, 2008). The supplemental application period shall run from March 24, 2008, to April 24, 2008. Despite the IRS's efforts to foster parity in availability and accessibility in the selection of organizations receiving LITC matching grants and the continued increase in clinic services nationwide, there remain communities that are underrepresented by clinics. For the supplemental application period, the IRS will focus on those geographic areas where there is limited or no clinic representation. The IRS will award up to $300,000 in additional funding to qualifying organizations in the following underserved or underrepresented states or areas within a state: State Areas California Los Angeles County. Colorado Statewide. Idaho Boise. Minnesota Minneapolis. Missouri St Louis. Mississippi Statewide. Nevada Reno, Las Vegas. New Mexico Statewide. Oregon Central. Pennsylvania Northeast. Texas Brownsville, Laredo. In order to be considered for a supplemental 2008 Low Income Taxpayer Clinic matching grant, a qualifying organization must be in a position to provide qualified services to taxpayers in these geographic areas. Qualifying organizations that provide representation for free or for a nominal fee to low income taxpayers involved in tax controversies with the IRS or that provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language can apply for a matching grant for the remainder of the 2008 grant cycle. Examples of qualifying organizations include:
(1)Clinical programs at accredited law, business or accounting schools, whose students may represent low income taxpayers in tax controversies with the IRS, and
(2)organizations exempt from tax under I.R.C. 501(a) which represent low income taxpayers in tax controversies with the IRS or refer those taxpayers to qualified representatives. DATES: Grant applications for the remainder of the 2008 grant cycle must be electronically filed or postmarked by April 24, 2008. Grant decisions will be made by June 1, 2008, and funds awarded can only be used for the remainder of the grant cycle. ADDRESSES: Send completed grant applications to: Internal Revenue Service, Taxpayer Advocate Service, LITC Grant Program Administration Office, TA:LITC, 1111 Constitution Avenue, NW., Room 1034, Washington, DC 20224. Copies of the *2008 Grant Application Package and Guidelines* , IRS Publication 3319 (Rev. 5-2007), can be downloaded from the IRS Internet site at *http://www.irs.gov/advocate* or ordered by the IRS Distribution Center by calling 1-800-829-3676. Applicants can also file electronically at *http://www.grants.gov* . For applicants applying through the Federal Grants Web site, the Funding Number is TREAS-GRANTS-05208-002. FOR FURTHER INFORMATION CONTACT: The LITC Program Office at
(202)622-4711 (not a toll-free number) or by e-mail at *LITCProgramOffice@irs.gov.* SUPPLEMENTARY INFORMATION: Background Section 7526 of the Internal Revenue Code authorizes the IRS, subject to the availability of appropriated funds, to award organizations matching grants of up to $100,000 per year for the development, expansion, or continuation of qualified low income taxpayer clinics. Section 7526 authorizes the IRS to provide grants to qualified organizations that represent low income taxpayers in controversies with the IRS or inform individuals for whom English is a second language of their taxpayer rights and responsibilities. The IRS may award grants to qualifying organizations to fund one-year, two-year or three-year project periods. Grant funds may be awarded for start-up expenditures incurred by new clinics during the grant cycle. The *2008 Grant Application Package and Guidelines* , Publication 3319 (Rev. 5-2007), outlines requirements for the operation of a qualifying LITC program and provides instructions on how to apply for a grant. The costs of preparing and submitting an application are the responsibility of each applicant. Each application will be given due consideration and the LITC Program Office will mail notification letters to each applicant. Selection Consideration Applications that pass the eligibility screening process will be numerically ranked based on the information contained in their proposed program plan. Please note that the IRS Volunteer Income Tax Assistance
(VITA)and Tax Counseling for the Elderly
(TCE)Programs are independently funded and separate from the LITC Program. Organizations currently participating in the VITA or TCE Programs may be eligible to apply for a LITC grant if they meet the criteria and qualifications outlined in the *2008 Grant Application Package and Guidelines* , Publication 3319 (Rev. 5-2007). Organizations that seek to operate VITA and LITC Programs, or TCE and LITC Programs, must maintain separate and distinct programs even if co-located to ensure proper cost allocation for LITC grant funds and adherence to the rules and regulations of the VITA, TCE and LITC Programs, as appropriate. Comments Interested parties are encouraged to provide comments on the IRS's administration of the grant program on an ongoing basis. Comments may be sent to Internal Revenue Service, Taxpayer Advocate Service, Attn: Shawn Collins, LITC Program Office, TA:LITC, 1111 Constitution Avenue, NW., Room 1034, Washington, DC 20224. Nina E. Olson, National Taxpayer Advocate, Internal Revenue Service. [FR Doc. E8-5944 Filed 3-24-08; 8:45 am] BILLING CODE 4830-01-P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900-0120] Proposed Information Collection (Report of Treatment by Attending Physician) Activity: Comment Request AGENCY: Veterans Benefits Administration, Department of Veterans Affairs. ACTION: Notice. SUMMARY: The Veterans Benefits Administration (VBA), Department of Veterans Affairs (VA), is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act
(PRA)of 1995, Federal agencies are required to publish notice in the **Federal Register** concerning each proposed collection of information, including each proposed extension of a currently approved collection, and allow 60 days for public comment in response to the notice. This notice solicits comments on information needed to determine claimants' eligibility for disability insurance benefits. DATES: Written comments and recommendations on the proposed collection of information should be received on or before May 27, 2008. ADDRESSES: Submit written comments on the collection of information through *http://www.Regulations.gov;* or to Nancy J. Kessinger, Veterans Benefits Administration (20M35), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420 or e-mail *nancy.kessinger@va.gov.* Please refer to “OMB Control No. 2900-0120 in any correspondence. During the comment period, comments may be viewed online through the Federal Docket Management System
(FDMS)at *http://www.Regulations.gov.* FOR FURTHER INFORMATION CONTACT: Nancy J. Kessinger at
(202)461-9769 or FAX
(202)275-5947. SUPPLEMENTARY INFORMATION: Under the PRA of 1995 (Pub. L. 104-13; 44 U.S.C. 3501-3521), Federal agencies must obtain approval from the Office of Management and Budget
(OMB)for each collection of information they conduct or sponsor. This request for comment is being made pursuant to Section 3506(c)(2)(A) of the PRA. With respect to the following collection of information, VBA invites comments on:
(1)Whether the proposed collection of information is necessary for the proper performance of VBA's functions, including whether the information will have practical utility;
(2)the accuracy of VBA's estimate of the burden of the proposed collection of information;
(3)ways to enhance the quality, utility, and clarity of the information to be collected; and
(4)ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology. *Title:* Report of Treatment by Attending Physician, VA Form 29-551a. *OMB Control Number:* 2900-0120. *Type of Review:* Extension of a currently approved collection. *Abstract:* VA Form 29-551a is used to collect information from attending physician to determine a claimant's eligibility for disability insurance benefits. *Affected Public:* Individuals or households. *Estimated Annual Burden:* 5,069 hours. *Estimated Average Burden per Respondent:* 15 minutes. *Frequency of Response:* On occasion. *Estimated Number of Respondents:* 20,277. Dated: March 13, 2008. By direction of the Secretary. Denise McLamb, Program Analyst, Records Management Service. [FR Doc. E8-5960 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900-New] Proposed Information Collection (SAR Application) Activity: Comment Request AGENCY: Veterans Benefits Administration, Department of Veterans Affairs. ACTION: Notice. SUMMARY: The Veterans Benefits Administration (VBA), Department of Veterans Affairs (VA), is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act
(PRA)of 1995, Federal agencies are required to publish notice in the **Federal Register** concerning each proposed collection of information, including each proposed new collection, and allow 60 days for public comment in response to the notice. This notice solicits comments information needed to nominate a servicer appraisal employee as a staff appraisal reviewer. DATES: Written comments and recommendations on the proposed collection of information should be received on or before May 27, 2008. ADDRESSES: Submit written comments on the collection of information through *http://www.Regulations.gov* or to Nancy J. Kessinger, Veterans Benefits Administration (20M35), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420 or e-mail to *nancy.kessinger@va.gov.* Please refer to “OMB Control No. 2900-New” in any correspondence. During the comment period, comments may be viewed online through the Federal Docket Management System
(FDMS)at *http://www.Regulations.gov.* FOR FURTHER INFORMATION CONTACT: Nancy J. Kessinger at
(202)461-9769 or FAX
(202)275-5947. SUPPLEMENTARY INFORMATION: Under the PRA of 1995 (Pub. L. 104-13; 44 U.S.C. 3501-3521), Federal agencies must obtain approval from the Office of Management and Budget
(OMB)for each collection of information they conduct or sponsor. This request for comment is being made pursuant to Section 3506(c)(2)(A) of the PRA. With respect to the following collection of information, VBA invites comments on:
(1)Whether the proposed collection of information is necessary for the proper performance of VBA's functions, including whether the information will have practical utility;
(2)the accuracy of VBA's estimate of the burden of the proposed collection of information;
(3)ways to enhance the quality, utility, and clarity of the information to be collected; and
(4)ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology. *Title:* Servicer's Staff Appraisal Reviewer
(SAR)Application, VA Form 26-0829. *OMB Control Number:* 2900—New. *Type of Review:* New collection. *Abstract:* VA Form 26-0829 is completed by servicers to nominate employees for approval as Staff Appraisal Reviewer (SAR). Servicers SAR's will have the authority to review real estate appraisals and to issue liquidation notices of value on behalf of VA. VA will also use the data collected to track the location of SARs when there is a change in employment. *Affected Public:* Business or other for-profit. *Estimated Annual Burden:* 45 hours. *Estimated Average Burden per Respondent:* 5 minutes. *Frequency of Response:* On occasion. *Estimated Number of Respondents:* 537. Dated: March 18, 2008. By direction of the Secretary. Denise McLamb, Program Analyst, Records Management Service. [FR Doc. E8-5975 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900-0079] Proposed Information Collection (Employment Questionnaire) Activity: Comment Request AGENCY: Veterans Benefits Administration, Department of Veterans Affairs. ACTION: Notice. SUMMARY: The Veterans Benefits Administration (VBA), Department of Veterans Affairs (VA), is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act
(PRA)of 1995, Federal agencies are required to publish notice in the **Federal Register** concerning each proposed collection of information, including each proposed extension of currently approved collection, and allow 60 days for public comment in response to the notice. This notice solicits comments for information needed to determine continued entitlement to benefits based on unemployment. DATES: Written comments and recommendations on the proposed collection of information should be received on or before May 27, 2008. ADDRESSES: Submit written comments on the collection of information through *http://www.Regulations.gov* or to Nancy J. Kessinger, Veterans Benefits Administration (20M35), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420 or e-mail to *nancy.kessinger@va.gov.* Please refer to “OMB Control No. 2900-0079” in any correspondence. During the comment period, comments may be viewed online through the Federal Docket Management System
(FDMS)at *http://www.Regulations.gov.* FOR FURTHER INFORMATION CONTACT: Nancy J. Kessinger at
(202)461-9769 or FAX
(202)275-5947. SUPPLEMENTARY INFORMATION: Under the PRA of 1995 (Pub. L. 104-13; 44 U.S.C. 3501-3521), Federal agencies must obtain approval from the Office of Management and Budget
(OMB)for each collection of information they conduct or sponsor. This request for comment is being made pursuant to section 3506(c)(2)(A) of the PRA. With respect to the following collection of information, VBA invites comments on:
(1)Whether the proposed collection of information is necessary for the proper performance of VBA's functions, including whether the information will have practical utility;
(2)the accuracy of VBA's estimate of the burden of the proposed collection of information;
(3)ways to enhance the quality, utility, and clarity of the information to be collected; and
(4)ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology. *Title:* Employment Questionnaire, VA Forms 21-4140, 21-4140-1. *OMB Control Number:* 2900-0079. *Type of Review:* Extension of a currently approved collection. *Abstract:* Claimants who are under the age of 60 and receiving individual unemployability compensation at 100 percent rate are required to complete VA Form 21-4140 and 21-4140-1 certifying that they are still unable to secure or follow a substantially gainful occupation because of a service-connected disability. VA will use the information collected to determine the claimant's continued entitlement to individual unemployability benefits. *Affected Public:* Individuals or households. *Estimated Annual Burden:* 10,833 hours. *Estimated Average Burden per Respondent:* 5 minutes. *Frequency of Response:* Annually. *Estimated Number of Respondents:* 130,000. Dated: March 13, 2008. By direction of the Secretary. Denise McLamb, Program Analyst, Records Management Service. [FR Doc. E8-5976 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900-0469] Proposed Information Collection (Certificate Showing Residence and Heirs of Deceased Veteran or Beneficiary) Activity: Comment Request AGENCY: Veterans Benefits Administration, Department of Veterans Affairs. ACTION: Notice. SUMMARY: The Veterans Benefits Administration (VBA), Department of Veterans Affairs (VA), is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act
(PRA)of 1995, Federal agencies are required to publish notice in the **Federal Register** concerning each proposed collection of information, including each proposed extension of a currently approved collection, and allow 60 days for public comment in response to the notice. This notice solicits comments on information needed to establish entitlement to Government Life insurance proceeds. DATES: Written comments and recommendations on the proposed collection of information should be received on or before May 27, 2008. ADDRESSES: Submit written comments on the collection of information through *http://www.Regulations.gov;* or to Nancy J. Kessinger, Veterans Benefits Administration (20M35), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420 or e-mail *nancy.kessinger@va.gov.* Please refer to “OMB Control No. 2900-0469 in any correspondence. During the comment period, comments may be viewed online through the Federal Docket Management System
(FDMS)at *http://www.Regulations.gov.* FOR FURTHER INFORMATION CONTACT: Nancy J. Kessinger at
(202)461-9769 or FAX
(202)275-5947. SUPPLEMENTARY INFORMATION: Under the PRA of 1995 (Pub. L. 104-13; 44 U.S.C. 3501-3521), Federal agencies must obtain approval from the Office of Management and Budget
(OMB)for each collection of information they conduct or sponsor. This request for comment is being made pursuant to Section 3506(c)(2)(A) of the PRA. With respect to the following collection of information, VBA invites comments on:
(1)Whether the proposed collection of information is necessary for the proper performance of VBA's functions, including whether the information will have practical utility;
(2)the accuracy of VBA's estimate of the burden of the proposed collection of information;
(3)ways to enhance the quality, utility, and clarity of the information to be collected; and
(4)ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology. *Title:* Certificate Showing Residence and Heirs of Deceased Veteran or Beneficiary, VA Form 29-541. *OMB Control Number:* 2900-0469. *Type of Review:* Extension of a currently approved collection. *Abstract:* VA uses the information collected on VA Form 29-541 to establish a claimant's entitlement to Government Life Insurance proceeds in estate cases when formal administration of the estate is not required. *Affected Public:* Individuals or households. *Estimated Annual Burden:* 1,039 hours. *Estimated Average Burden per Respondent:* 30 minutes. *Frequency of Response:* On occasion. *Estimated Number of Respondents:* 2,078. Dated: March 13, 2008. By direction of the Secretary. Denise McLamb, Program Analyst, Records Management Service. [FR Doc. E8-5977 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900-0149] Agency Information Collection (Application for Conversion) Activities Under OMB Review AGENCY: Veterans Benefits Administration, Department of Veterans Affairs. ACTION: Notice. SUMMARY: In compliance with the Paperwork Reduction Act
(PRA)of 1995 (44 U.S.C. 3501-3521), this notice announces that the Veterans Benefits Administration (VBA), Department of Veterans Affairs, will submit the collection of information abstracted below to the Office of Management and Budget
(OMB)for review and comment. The PRA submission describes the nature of the information collection and its expected cost and burden; it includes the actual data collection instrument. DATES: Comments must be submitted on or before April 24, 2008. ADDRESSES: Submit written comments on the collection of information through *http://www.Regulations.gov;* or to VA's OMB Desk Officer, OMB Human Resources and Housing Branch, New Executive Office Building, Room 10235, Washington, DC 20503,
(202)395-7316. Please refer to “OMB Control No. 2900-0149” in any correspondence. FOR FURTHER INFORMATION CONTACT: Denise McLamb, Records Management Service (005R1B), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420,
(202)461-7485, fax
(202)273-0443 or e-mail *denise.mclamb@mail.va.gov.* Please refer to “OMB Control No. 2900-2900-0149.” SUPPLEMENTARY INFORMATION: *Title:* Application for Conversion (Government Life Insurance), VA Form 29-0152. *OMB Control Number:* 2900-0149. *Type of Review:* Extension of a currently approved collection. *Abstract:* VA Form 29-0152 is completed by insured veterans to convert his/her term insurance to a permanent plan of insurance. An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The **Federal Register** Notice with a 60-day comment period soliciting comments on this collection of information was published on January 17, 2008 at pages 3323-3324. *Affected Public:* Individuals or households. *Estimated Annual Burden:* 1,125 hours. *Estimated Average Burden per Respondent:* 15 minutes. *Frequency of Response:* On occasion. *Estimated Number of Respondents:* 4,500. Dated: March 18, 2008. By direction of the Secretary. Denise McLamb, Program Analyst, Records Management Service. [FR Doc. E8-5985 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900-0159] Agency Information Collection (Matured Endowment Notification) Activities Under OMB Review AGENCY: Veterans Benefits Administration, Department of Veterans Affairs. ACTION: Notice. SUMMARY: In compliance with the Paperwork Reduction Act
(PRA)of 1995 (44 U.S.C. 3501-3521), this notice announces that the Veterans Benefits Administration (VBA), Department of Veterans Affairs, will submit the collection of information abstracted below to the Office of Management and Budget
(OMB)for review and comment. The PRA submission describes the nature of the information collection and its expected cost and burden; it includes the actual data collection instrument. DATE: Comments must be submitted on or before April 24, 2008. ADDRESSES: Submit written comments on the collection of information through *http://www.Regulations.gov;* or to VA's OMB Desk Officer, OMB Human Resources and Housing Branch, New Executive Office Building, Room 10235, Washington, DC 20503,
(202)395-7316. Please refer to “OMB Control No. 2900-0159” in any correspondence. FOR FURTHER INFORMATION CONTACT: Denise McLamb, Records Management Service (005R1B), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420,
(202)461-7485, fax
(202)273-0443 or e-mail *denise.mclamb@mail.va.gov.* Please refer to “OMB Control No. 2900-2900-0159.” SUPPLEMENTARY INFORMATION: Title: Matured Endowment Notification, VA Form 29-5767. *OMB Control Number:* 2900-0159. *Type of Review:* Extension of a currently approved collection. *Abstract:* VA Form 29-5767 is used to notify the insured that his or her endowment policy has matured. The form also request that the insured elect whether he or she prefer to receive the proceeds in monthly installment or in a combination of cash and monthly installment and to designate a beneficiary(ies) to receive the remaining proceeds. An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The **Federal Register** Notice with a 60-day comment period soliciting comments on this collection of information was published on January 17, 2008 at page 3324. *Estimated Annual Burden:* 2,867 hours. *Estimated Average Burden per Respondent:* 20 minutes. *Frequency of Response:* On occasion. *Estimated Number of Respondents:* 8,600. Dated: March 18, 2008. By direction of the Secretary. Denise McLamb, Program Analyst, Records Management Service. [FR Doc. E8-5991 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900-0166] Proposed Information Collection (Application for Ordinary Life Insurance) Activity: Comment Request AGENCY: Veterans Benefits Administration, Department of Veterans Affairs. ACTION: Notice. SUMMARY: The Veterans Benefits Administration (VBA), Department of Veterans Affairs (VA), is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act
(PRA)of 1995, Federal agencies are required to publish notice in the **Federal Register** concerning each proposed collection of information, including each extension of a currently approved collection, and allow 60 days for public comment in response to the notice. This notice solicits comments on information needed to determine eligibility for replacement insurance. DATES: Written comments and recommendations on the proposed collection of information should be received on or before May 27, 2008. ADDRESSES: Submit written comments on the collection of information through *http://www.Regulations.gov;* or to Nancy J. Kessinger, Veterans Benefits Administration (20M35), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420 or e-mail *nancy.kessinger@va.gov.* Please refer to “OMB Control No. 2900-0166 in any correspondence. During the comment period, comments may be viewed online through the Federal Docket Management System
(FDMS)at *http://www.Regulations.gov.* FOR FURTHER INFORMATION CONTACT: Nancy J. Kessinger at
(202)461-9769 or FAX
(202)275-5947. SUPPLEMENTARY INFORMATION: Under the PRA of 1995 (Pub. L. 104-13; 44 U.S.C. 3501—3521), Federal agencies must obtain approval from the Office of Management and Budget
(OMB)for each collection of information they conduct or sponsor. This request for comment is being made pursuant to Section 3506(c)(2)(A) of the PRA. With respect to the following collection of information, VBA invites comments on:
(1)Whether the proposed collection of information is necessary for the proper performance of VBA's functions, including whether the information will have practical utility;
(2)the accuracy of VBA's estimate of the burden of the proposed collection of information;
(3)ways to enhance the quality, utility, and clarity of the information to be collected; and
(4)ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology. *Titles:* a. Application for Ordinary Life Insurance, Replacement Insurance for Modified Life Reduced at Age 65, National Service Life Insurance, VA Form 29-8485. b. Application for Ordinary Life Insurance, Replacement Insurance for Modified Life Reduced at Age 70, National Service Life Insurance, VA Form 29-8485a. c. Application for Ordinary Life Insurance, Replacement Insurance for Modified Life Reduced at Age 65, National Service Life Insurance, VA Form 29-8700. d. Application for Ordinary Life Insurance, Replacement Insurance for Modified Life Reduced at Age 70, National Service Life Insurance, VA Form 29-8701. e. Information About Modified Life Reduction, VA Forms 29-8700a-e and VA Forms 29-8701a-e. *OMB Control Number:* 2900-0166. *Type of Review:* Extension of a currently approved collection. *Abstract:* Policyholder's use the forms to apply for replacement of Modified Life insurance. Modified Life insurance coverage is reduced automatically by one-half from its present face value on the day before a policyholder's 65th and 70th birthdays. Policyholder's who wish to maintain the same amount of coverage must purchase whole life insurance prior to their 65th and 70th birthdays to replace the coverage that will be lost when the Modified Life insurance is reduce. *Affected Public:* Individuals or households. *Estimated Annual Burden:* 1,284 hours. *Estimated Average Burden per Respondent:* 5 minutes. *Frequency of Response:* One time. *Estimated Number of Respondents:* 15,400. Dated: March 13, 2008. By direction of the Secretary. Denise McLamb, Program Analyst, Records Management Service. [FR Doc. E8-5994 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900-0215] Agency Information Collection (Request for Information To Make Direct Payment to Child Reaching Majority) Activities Under OMB Review AGENCY: Veterans Benefits Administration, Department of Veterans Affairs. ACTION: Notice. SUMMARY: In compliance with the Paperwork Reduction Act
(PRA)of 1995 (44 U.S.C. 3501-3521), this notice announces that the Veterans Benefits Administration (VBA), Department of Veterans Affairs, will submit the collection of information abstracted below to the Office of Management and Budget
(OMB)for review and comment. The PRA submission describes the nature of the information collection and its expected cost and burden; it includes the actual data collection instrument. DATE: Comments must be submitted on or before April 24, 2008. ADDRESSES: Submit written comments on the collection of information through *http://www.Regulations.gov* or to VA's OMB Desk Officer, OMB Human Resources and Housing Branch, New Executive Office Building, Room 10235, Washington, DC 20503,
(202)395-7316. Please refer to “OMB Control No. 2900-0215” in any correspondence. FOR FURTHER INFORMATION CONTACT: Denise McLamb, Records Management Service (005R1B), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420,
(202)461-7485, FAX
(202)273-0443 or e-mail *denise.mclamb@mail.va.gov.* Please refer to “OMB Control No. 2900-0215.” SUPPLEMENTARY INFORMATION: *Title:* Request for Information To Make Direct Payment to Child Reaching Majority, VA Form Letter 21-863. *OMB Control Number:* 2900-0215. *Type of Review:* Extension of a currently approved collection. *Abstract:* VA Form Letter 21-863 is used to determine a schoolchild's continued eligibility to death benefits and eligibility to receive direct payment at the age of majority. Death pension or dependency and indemnity compensation is paid to an eligible veteran's child when there is not an eligible surviving spouse and the child is between the ages of 18 and 23 is attending school. Until the child reaches the age of majority, payment is made to a custodian or fiduciary on behalf of the child. An unmarried schoolchild, who is not incompetent, is entitled to begin receiving direct payment on the age of majority. An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The **Federal Register** Notice with a 60-day comment period soliciting comments on this collection of information was published on January 17, 2008, at page 3322. *Affected Public:* Individuals or households. *Estimated Annual Burden:* 3 hours. *Estimated Average Burden per Respondent:* 10 minutes. *Frequency of Response:* One-time. *Estimated Number of Respondents:* 20. Dated: March 18, 2008. By direction of the Secretary. Denise McLamb, Program Analyst, Records Management Service. [FR Doc. E8-5996 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900-0049] Proposed Information Collection (Approval of School Attendance) Activity: Comment Request AGENCY: Veterans Benefits Administration, Department of Veterans Affairs. ACTION: Notice. SUMMARY: The Veterans Benefits Administration (VBA), Department of Veterans Affairs (VA), is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act
(PRA)of 1995, Federal agencies are required to publish notice in the **Federal Register** concerning each proposed collection of information, including each proposed extension of a currently approved collection, and allow 60 days for public comment in response to the notice. This notice solicits comments for information necessary to determine entitlement to compensation and pension benefits for a child between the ages of 18 and 23 attending school. DATES: Written comments and recommendations on the proposed collection of information should be received on or before May 27, 2008. ADDRESSES: Submit written comments on the collection of information through *http://www.Regulations.gov* or to Nancy J. Kessinger, Veterans Benefits Administration (20M35), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420 or e-mail to *nancy.kessinger@va.gov.* Please refer to “OMB Control No. 2900-0049” in any correspondence. During the comment period, comments may be viewed online through the Federal Docket Management System
(FDMS)at: *http://www.Regulations.gov.* FOR FURTHER INFORMATION CONTACT: Nancy J. Kessinger at
(202)461-9769 or Fax
(202)275-5947. SUPPLEMENTARY INFORMATION: Under the PRA of 1995 (Pub. L. 104-13; 44 U.S.C. 3501-3521), Federal agencies must obtain approval from the Office of Management and Budget
(OMB)for each collection of information they conduct or sponsor. This request for comment is being made pursuant to section 3506(c)(2)(A) of the PRA. With respect to the following collection of information, VBA invites comments on:
(1)Whether the proposed collection of information is necessary for the proper performance of VBA's functions, including whether the information will have practical utility;
(2)the accuracy of VBA's estimate of the burden of the proposed collection of information;
(3)ways to enhance the quality, utility, and clarity of the information to be collected; and
(4)ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology. *Titles:* a. Request for Approval of School Attendance, VA Form 21-674 and 21-674c. b. School Attendance Report, VA Form 21-674b. *OMB Control Number:* 2900-0049. *Type of Review:* Extension of a currently approved collection. *Abstract:* Recipients of disability compensation, dependency and indemnity compensation, disability pension, and death pension are entitled to benefits for eligible children between the ages of 18 and 23 who are attending school. VA Forms 21-674, 21-674c and 21-674b are used to confirm school attendance of children for whom VA compensation or pension benefits are being paid and to report any changes in entitlement factors, including marriages, a change in course of instruction and termination of school attendance. *Affected Public:* Individuals or households. *Estimated Annual Burden:* a. VA Forms 21-674 and 674c—34,500 hours. b. VA Form 21-674b—3,292 hours. *Estimated Average Burden Per Respondent:* a. VA Forms 21-674 and 674c—15 minutes. b. VA Form 21-674b—5 minutes. *Frequency of Response:* On occasion. *Estimated Number of Respondents:* a. VA Forms 21-674 and 674c—138,000 hours. b. VA Form 21-674b—39,500 hours. Dated: March 18, 2008. By direction of the Secretary. Denise McLamb, Program Analyst, Records Management Service. [FR Doc. E8-6034 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900-0662] Agency Information Collection (Civil Rights Discrimination Complaint) Activities Under OMB Review AGENCY: Veterans Health Administration, Department of Veterans Affairs. ACTION: Notice. SUMMARY: In compliance with the Paperwork Reduction Act
(PRA)of 1995 (44 U.S.C. 3501-3521), this notice announces that the Veterans Health Administration (VHA), Department of Veterans Affairs, has submitted the collection of information abstracted below to the Office of Management and Budget
(OMB)for review and comment. The PRA submission describes the nature of the information collection and its expected cost and burden and includes the actual data collection instrument. DATES: Comments must be submitted on or before April 24, 2008. ADDRESSES: Submit written comments on the collection of information through *www.Regulations.gov* or to VA's OMB Desk Officer, OMB Human Resources and Housing Branch, New Executive Office Building, Room 10235, Washington, DC 20503
(202)395-7316. Please refer to “OMB Control No. 2900-0662” in any correspondence. FOR FURTHER INFORMATION CONTACT: Denise McLamb, Records Management Service (005R1B), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420,
(202)273-0443, fax
(202)461-7485 or e-mail *denise.mclamb@mail.va.gov* . Please refer to “OMB Control No. 2900-0662.” SUPPLEMENTARY INFORMATION: *Title:* Civil Rights Discrimination Complaint, VA Form 10-0381. *OMB Control Number:* 2900-0662. *Type of Review:* Extension of a currently approved collection. *Abstract:* Veterans and other VHA customers who believe that their civil rights were violated by agency employees while receiving medical care or services in VA medical centers, or institutions such as state homes receiving federal financial assistance from VA, complete VA Form 10-0381 to file a formal complaint of the alleged discrimination. An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The **Federal Register** Notice with a 60-day comment period soliciting comments on this collection of information was published on January 8, 2008 at pages 1399-1400. *Affected Public:* Individuals or households. *Estimated Total Annual Burden:* 46 hours. *Estimated Average Burden Per Respondent:* 15 minutes. *Frequency of Response:* On occasion. *Estimated Number of Respondents:* 183. Dated: March 13, 2008. By direction of the Secretary. Denise McLamb, Program Analyst, Records Management Service. [FR Doc. E8-6075 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS Privacy Act of 1974 AGENCY: Department of Veterans Affairs (VA). ACTION: Notice of New System of Records. SUMMARY: The Privacy Act of 1974 (5 U.S.C. 552(e)(4)) requires that all agencies publish in the **Federal Register** a notice of the existence and character of their systems of records. Notice is hereby given that the Department of Veterans Affairs
(VA)is establishing a new system of records entitled “Enrollment and Eligibility Records-VA” (147VA16) formerly included and described in the “Health Eligibility Records-VA” (89VA19) system of records last amended in the **Federal Register** on May 18, 2001, which has been renamed, “Income Verification Records” 66 FR 27752 (May 18, 2001). DATES: Comments on this new system of records must be received no later than April 24, 2008. If no public comment is received, or unless otherwise published in the **Federal Register** by VA, the new system will become effective April 24, 2008. ADDRESSES: Written comments may be submitted through *http://www.Regulations.gov;* by mail or hand delivery to the Director, Regulations Management (00REG), Department of Veterans Affairs, 810 Vermont Ave., NW., Room 1068, Washington, DC 20420; or by fax to
(202)273-9026. Copies of comments received will be available for public inspection in the Office of Regulation Policy and Management, Room 1063B, between the hours of 8 a.m. and 4:30 p.m. Monday through Friday (except holidays). Please call
(202)273-9515 for an appointment. In addition, during the comment period, comments may be viewed online through the Federal Docket Management System
(FDMS)at *http://www.Regulations.gov.* FOR FURTHER INFORMATION CONTACT: Stephania H. Putt, Veterans Health Administration
(VHA)Privacy Officer, Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, telephone
(704)245-2492. SUPPLEMENTARY INFORMATION: *Background:* Title 38 U.S.C. Section 1705 requires VHA to establish a system of annual patient enrollment to manage the delivery of health care. I. Description of Proposed Systems of Records This system of records is used to establish and maintain applicants' records necessary to support the delivery of health care benefits; establish applicants' eligibility for VA health care benefits; to operate an annual enrollment system; provide eligible veterans with an identification card; collect from applicants' health insurance provider for care of their nonservice-connected conditions; provide educational materials related to VA health care benefits, enrollment, and eligibility; respond to veteran and non-veteran inquiries related to VA health care benefits, enrollment, and eligibility; and compile management reports. II. Proposed Routine Use Disclosures of Data in the System To the extent that records contained in the system include information protected by 45 CFR Parts 160 and 164, (i.e., individually-identifiable health information) that information cannot be disclosed under a routine use unless there is also specific regulatory authority in 45 CFR Parts 160 and 164 permitting disclosure. VA may disclose protected health information pursuant to the following routine uses where required by law, or required or permitted by 45 CFR Parts 160 and 164. 1. VA may disclose information from this system of records, as deemed necessary and proper, to named individuals serving as accredited service organization representatives and other individuals named as approved agents or attorneys for a documented purpose and period of time, to aid beneficiaries in the preparation and presentation of their cases during verification and/or due process procedures and in the presentation and prosecution of claims under laws administered by VA. 2. VA may disclose on its own initiative any information in this system, except the names and home addresses of veterans and their dependents, which is relevant to a suspected or reasonably imminent violation of law, whether civil, criminal or regulatory in nature and whether arising by general or program statute or by regulation, rule or order issued pursuant thereto, to a Federal, State, local, or foreign agency charged with the responsibility of investigating or prosecuting such violation, or charged with enforcing or implementing the statute, regulation, rule or order. On its own initiative, VA may also disclose the names and addresses of veterans and their dependents to a Federal agency charged with the responsibility of investigating or prosecuting civil, criminal or regulatory violations of law, or charged with enforcing or implementing the statute, regulation, rule or order issued pursuant thereto. 3. VA may disclose information to private attorneys representing veterans rated incompetent in conjunction with issuance of Certificates of Incompetence, in the course of presenting evidence to a court, magistrate or administrative tribunal in matters of guardianship, inquests and commitments, and to probation and parole officers in connection with Court required duties. 4. VA may disclose information to a VA Federal fiduciary or a guardian *ad litem* in relation to his or her representation of a veteran, but only to the extent necessary to fulfill the duties of the VA Federal fiduciary or the guardian *ad litem.* 5. VA may disclose information to attorneys, insurance companies, employers, third parties liable or potentially liable under health plan contracts, and courts, boards, or commissions, but only to the extent necessary to aid VA in the preparation, presentation, and prosecution of claims authorized under Federal, State, or local laws, and regulations promulgated hereunder. 6. VA may disclose information in this system of records to the Department of Justice (DoJ), either on VA's initiative or in response to DoJ's request for the information, after either VA or DoJ determines that such information is relevant to DoJ's representation of the United States or any of its components in legal proceedings before a court or adjudicative body, provided that, in each case, the agency also determines prior to disclosure that disclosure of the records to the Department of Justice is a use of the information contained in the records that is compatible with the purpose for which VA collected the records. VA, on its own initiative, may disclose records in this system of records in legal proceedings before a court or administrative body after determining that the disclosure of the records to the court or administrative body is a use of the information contained in the records that is compatible with the purpose for which VA collected the records. 7. VA may disclose information to the National Archives and Records Administration
(NARA)and General Services Administration
(GSA)in records management inspections conducted under authority of title 44 United States Code. 8. VA may disclose information for the purposes identified below to a third party, except consumer reporting agencies, in connection with any proceeding for the collection of an amount owed to the United States by virtue of a person's participation in any benefit program administered by VA. Information may be disclosed under this routine use only to the extent that it is reasonably necessary for the following purposes:
(a)To assist VA in the collection of costs of services provided individuals not entitled to such services;
(b)to initiate civil or criminal legal actions for collecting amounts owed to the United States and
(c)for prosecuting individuals who willfully or fraudulently obtained or seek to obtain title 38 medical benefits. This disclosure is consistent with 38 U.S.C. 5701(b)(6). 9. VA may disclose the name and address of a veteran, other information as is reasonably necessary to identify such veteran, and any information concerning the veteran's indebtedness to the United States by virtue of the person's participation in a benefits program administered by VA to a consumer reporting agency for purposes of assisting in the collection of such indebtedness, provided that the provisions of 38 U.S.C. 5701(g)(4) have been met. 10. VA may disclose information to individuals, organizations, private or public agencies, or other entities with whom VA has a contract or agreement to perform such services as VA may deem practicable for the purposes of laws administered by VA in order for the individual or entity with whom VA has an agreement or contract to perform the services of the contract or agreement. This routine use includes disclosures by the individual or entity performing the service for VA to any secondary individual or entity to perform an activity that is necessary for the individual or entity with whom VA has a contract or agreement to provide the service to VA. 11. The record of an individual who is covered by a system of records may be disclosed to a member of Congress, or a staff person acting for the member, when the member or staff person requests the record on behalf of and at the written request of the individual. 12. VA may disclose information to other Federal agencies to assist such agencies in preventing and detecting possible fraud or abuse by individuals in their operations and programs. 13. VA may, on its own initiative, disclose any information or records to appropriate agencies, entities, and persons when
(1)VA suspects or has confirmed that the integrity or confidentiality of information in the system of records has been compromised;
(2)the Department has determined that as a result of the suspected or confirmed compromise, there is a risk of embarrassment or harm to the reputations of the record subjects, harm to economic or property interests, identity theft or fraud, or harm to the security, confidentiality, or integrity of this system or other systems or programs (whether maintained by the Department or another agency or entity) that rely upon the potentially compromised information; and
(3)the disclosure is to agencies, entities, or persons who VA determines are reasonably necessary to assist or carry out the Department's efforts to respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm. This routine use permits disclosure is required by the Memorandum from the Office of Management and Budget (M-07-16), dated May 22, 2007, of all systems of records of all federal agencies. This routine use also permits disclosures by the Department to respond to a suspected or confirmed data breach, including the conduct of any risk analysis or provision of credit protection services as provided in 38 U.S.C. 5724, as the terms are defined in 38 U.S.C. 5727. III. Compatibility of the Proposed Routine Uses The Privacy Act permits VA to disclose information about individuals without their consent for a routine use when the information will be used for a purpose that is compatible with the purpose for which we collected the information. In all of the routine use disclosures described above, the recipient of the information will use the information in connection with a matter relating to one of VA's programs or to provide a benefit to VA, or disclosure is required by law. Under section 264, Subtitle F of Title II of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), Public Law 104-191, 100 Stat. 1936, 2033-34 (1996), the United States Department of Health and Human Services
(HHS)published a final rule, as amended, establishing Standards for Privacy of Individually-Identifiable Health Information, 45 CFR Parts 160 and 164. VA's Veterans Health Administration may not disclose individually-identifiable health information (as defined in HIPAA, 42 U.S.C. 1320(d)(6), and the HIPAA Privacy Rule, 45 CFR 164.501) pursuant to a routine use unless either:
(a)the disclosure is required by law, or
(b)the disclosure is permitted or required by the HIPAA Privacy Rule. The disclosures of individually-identifiable health information contemplated in the routine uses published in this system of records notice are permitted under the Privacy Rule or required by law. In accordance with the requirements of the Privacy Act, VA is publishing these routine uses and adding a preliminary paragraph to the routine uses portion of the system of records notice stating that any disclosure pursuant to the routine uses in this system of records notice must be either required by law or permitted by the Privacy Rule before VHA may disclose the covered information. The notice of intent to publish an advance copy of the system notice has been sent to the appropriate Congressional committees and to the Director of the Office of Management and Budget
(OMB)as required by 5 U.S.C. 552a(r) (Privacy Act) and guidelines issued by OMB (65 FR 77677), December 12, 2000. Approved: March 11, 2008. Gordon H. Mansfield, Deputy Secretary of Veterans Affairs. 147VA16 System Name: Enrollment and Eligibility Records—VA. System Location: Records are maintained at the Health Eligibility Center
(HEC)in Atlanta, Georgia, the Austin Automation Center
(AAC)in Austin, Texas, at each VA health care facility as described in the VA system of records entitled “Patient Medical Records—24VA19,” and at the Veteran Identification Card
(VIC)National Card Management Directory
(NCMD)located at the Hines, Illinois, and Silver Spring, Maryland VA facilities. Electronic and magnetic records are also stored at contracted facilities for storage and back-up purposes. Categories of Individuals Covered By This System: The records contain information on individuals who have applied for or who have received VA health care benefits under title 38, United States Code, chapter 17; the records also include veterans, their spouses and dependents as provided for in other provisions of title 38, United States Code. Categories of Records In the System: The categories of records in this system may include: Medical benefit applications, eligibility and enrollment information, including information obtained from Veterans Benefits Administration automated records such as the Compensation, Pension, Education and Rehabilitation Records—VA'' (58VA21/22), and VIC information including applicant's name, address(es), date of birth, Social Security number, race and ethnicity, claim number, ICN, applicant's image, preferred facility and facility requesting a VIC, names, addresses and phone numbers of persons to contact in the event of a medical emergency, family information including spouse and dependent(s) name(s), address(es) and Social Security number; applicant and spouse's employment information, including occupation, employer(s) name(s) and address(es); financial information concerning the applicant and the applicant's spouse including family income, assets, expenses, debts; third party health plan contract information, including health insurance carrier name and address, policy number and time period covered by policy; facility location(s) where treatment is provided; type of treatment provided (i.e., inpatient or outpatient); information about the applicant's military service (e.g., dates of active duty service, dates and branch of service, and character of discharge, combat service dates and locations, military decorations, POW status and military service experience including exposures to toxic substances); information about the applicant's eligibility for VA compensation or pension benefits, and the applicant's enrollment status and enrollment priority group. These records also include, but are not limited to, individual correspondence provided to the HEC by veterans, their family members and veterans' representatives such as Veteran Service Officers (VSO), copies of death certificates; form DD 214, Certificate of Release or Discharge from Active Duty; disability award letters; VA and other pension applications; VA Form 10-10EZ, Application for Health Benefits; VA Form 10-10EZR, Health Benefits Renewal; VA Form 10-10EC, Application for Extended Care Services; and workers compensation forms. Authority for Maintenance of the System: Title 38, United States Code, Sections 501(a), 1705, 1710, 1722, and 5317. Purpose(s): Information in this system of records is used to establish and maintain applicants' records necessary to support the delivery of health care benefits; establish applicants' eligibility for VA health care benefits; operate an annual enrollment system; provide eligible veterans with an identification card; collect from an applicant's health insurance provider for care of their nonservice-connected conditions; provide educational materials related to VA health care benefits, enrollment and eligibility; respond to veteran and non-veteran inquiries related to VA health care benefits, enrollment and eligibility; and compile management reports. Routine Uses of Records Maintained In the System, Including Categories of Users and the Purposes of Such Uses: To the extent that records contained in the system include information protected by 45 CFR parts 160 and 164 (i.e., individually identifiable health information), that information cannot be disclosed under a routine use unless there is also specific regulatory authority in 45 CFR parts 160 and 164 permitting disclosure. 1. VA may disclose information from this system of records, as deemed necessary and proper, to named individuals serving as accredited service organization representatives and other individuals named as approved agents or attorneys for a documented purpose and period of time, to aid beneficiaries in the preparation and presentation of their cases during the verification and/or due process procedures and in the presentation and prosecution of claims under laws administered by VA. 2. VA may disclose on its own initiative any information in this system, except the names and home addresses of veterans and their dependents, which is relevant to a suspected or reasonably imminent violation of law, whether civil, criminal or regulatory in nature and whether arising by general or program statute or by regulation, rule or order issued pursuant thereto, to a Federal, State, local, or foreign agency charged with the responsibility of investigating or prosecuting such violation, or charged with enforcing or implementing the statute, regulation, rule or order. On its own initiative, VA may also disclose the names and addresses of veterans and their dependents to a Federal agency charged with the responsibility of investigating or prosecuting civil, criminal or regulatory violations of law, or charged with enforcing or implementing the statute, regulation, rule or order issued pursuant thereto. 3. VA may disclose information from this system of records to private attorneys representing veterans rated incompetent in conjunction with issuance of Certificates of Incompetence, in the course of presenting evidence to a court, magistrate or administrative tribunal, in matters of guardianship, inquests and commitments; and to probation and parole officers in connection with court required duties. 4. VA may disclose information to a VA Federal fiduciary or a guardian ad litem in relation to his or her representation of a veteran only to the extent necessary to fulfill the duties of the VA Federal fiduciary or the guardian ad litem. 5. VA may disclose information to attorneys, insurance companies, employers, third parties liable or potentially liable under health plan contracts, and to courts, boards, or commissions, but only to the extent necessary to aid VA in the preparation, presentation, and prosecution of claims authorized under Federal, State, or local laws, and regulations promulgated thereunder. 6. VA may disclose information in this system of records to the Department of Justice (DoJ), either on VA's initiative or in response to DoJ's request for the information, after either VA or DoJ determines that such information is relevant to DoJ's representation of the United States or any of its components in legal proceedings before a court or adjudicative body, provided that, in each case, the agency also determines prior to disclosure that disclosure of the records to the Department of Justice is a use of the information contained in the records that is compatible with the purpose for which VA collected the records. VA, on its own initiative, may disclose records in this system of records in legal proceedings before a court or administrative body after determining that the disclosure of the records to the court or administrative body is a use of the information contained in the records that is compatible with the purpose for which VA collected the records. 7. VA may disclose information to the National Archives and Records Administration
(NARA)and General Services Administration
(GSA)in records management inspections conducted under authority of title 44 United States Code. 8. VA may disclose information for the purposes identified below to a third party, except consumer reporting agencies, in connection with any proceeding for the collection of an amount owed to the United States by virtue of a person's participation in any benefit program administered by VA. Information may be disclosed under this routine use only to the extent that it is reasonably necessary for the following purposes:
(a)To assist VA in the collection of costs of services provided individuals not entitled to such services,
(b)to initiate civil or criminal legal actions for collecting amounts owed to the United States, and
(c)for prosecuting individuals who willfully or fraudulently obtained or seek to obtain title 38 medical benefits. This disclosure is consistent with 38 U.S.C. 5701(b)(6). 9. VA may disclose information such as the name and address of a veteran, or other information as is reasonably necessary to identify such veteran, and any information concerning the veteran's indebtedness to the United States by virtue of the person's participation in a benefits program administered by VA, to a consumer reporting agency for purposes of assisting in the collection of such indebtedness, provided that the provisions of 38 U.S.C. 5701(g)(4) have been met. 10. VA may disclose information to individuals, organizations, private or public agencies, or other entities with whom VA has a contract or agreement to perform such services as VA may deem practicable for the purposes of laws administered by VA in order for the individual or entity with whom VA has an agreement or contract to perform the services of the contract or agreement. This routine use includes disclosures by the individual or entity performing the service for VA to any secondary individual or entity to perform an activity that is necessary for the individual or entity with whom VA has a contract or agreement to provide the service to VA. 11. VA may disclose information from the record of an individual who is covered by a system of records to a member of Congress, or a staff person acting for the member, when the member or staff person requests the record on behalf of and at the written request of the individual. 12. VA may disclose information to other Federal agencies to assist such agencies in preventing and detecting possible fraud or abuse by individuals in their operations and programs. 13. VA may, on its own initiative, disclose any information or records to appropriate agencies, entities, and persons when
(1)VA suspects or has confirmed that the integrity or confidentiality of information in the system of records has been compromised;
(2)the Department has determined that as a result of the suspected or confirmed compromise, there is a risk of embarrassment or harm to the reputations of the record subjects, harm to economic or property interests, identity theft or fraud, or harm to the security, confidentiality, or integrity of this system or other systems or programs (whether maintained by the Department or another agency or entity) that rely upon the potentially compromised information; and
(3)the disclosure is to agencies, entities, or persons whom VA determines are reasonably necessary to assist or carry out the Department's efforts to respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm. This routine use permits disclosure is required by the Memorandum from the Office of Management and Budget (M-07-16), dated May 22, 2007, of all systems of records of all Federal agencies. This routine use also permits disclosures by the Department to respond to a suspected or confirmed data breach, including the conduct of any risk analysis or provision of credit protection services as provided in 38 U.S.C. 5724, as the terms are defined in 38 U.S.C. 5727. Policies and Practices for Storing, Retrieving, Accessing, Retaining and Disposing of Records In the System: Storage: Records are maintained on magnetic tape, magnetic disk, optical disk and paper at the HEC, VIC databases, VA medical centers, the NCMD databases, AAC, contract facilities, and at Federal Record Centers. In most cases, copies of back-up computer files are maintained at off-site locations and/or agencies with whom VA has a contract or agreement to perform such services, as VA may deem practicable. Retrievability: Records are retrieved by name, and/or Social Security number, ICN, military service number, claim folder number, correspondence tracking number, internal record number (DFN), facility number, or other assigned identifiers of the individuals on whom they are maintained. Access: 1. In accordance with national and locally established data security procedures, access to enrollment information databases (HEC Legacy system and the Enrollment Database) is controlled by unique entry codes (access and verification codes). The user's verification code is automatically set to be changed every 90 days. User access to data is controlled by role-based access as determined necessary by supervisory and information security staff as well as by management of option menus available to the employee. Determination of such access is based upon the role or position of the employee and functionality necessary to perform the employee's assigned duties. 2. On an annual basis, employees are required to sign a computer access agreement acknowledging their understanding of confidentiality requirements. In addition, all employees receive annual privacy awareness and information security training. Access to electronic records is deactivated when no longer required for official duties. Recurring monitors are in place to ensure compliance with nationally and locally established security measures. 3. User access to the VIC National Card Management Directory database utilizes the national NT network authentication infrastructure. The external VIC vendor utilizes the One-VA VPN secured connection for access to VIC records. 4. Strict control measures are enforced to ensure that access to and disclosure from all records is limited to VA and the contractor's employees whose official duties warrant access to those files. 5. As required by the provisions of the HIPAA Privacy Rule, 45 CFR Parts 160 and 164, access to records by HEC employees is classified under functional category “Eligibility and Enrollment Staff.” Safeguards: 1. Data transmissions between VA health care facilities, the HEC, the AAC, Silver Spring, and Hines databases are accomplished using the Department's secure wide area network. The software programs automatically flag records or events for transmission based upon functional requirements. Server jobs at each facility run continuously to check for data to be transmitted and/or incoming data which needs to be parsed to files on the receiving end. All messages containing data transmissions include header information that is used for validation purposes. The recipients of the messages are controlled and/or assigned to the mail group based on their role or position. Consistency checks in the software are used to validate the transmission, and electronic acknowledgment messages are returned to the sending application. The Department's Office of Cyber Security has oversight responsibility for planning and implementing computer security. 2. Working spaces and record storage areas at HEC, AAC, and the VIC processing locations are secured during all business hours, as well as during non-business hours. All entrance doors require an electronic pass card, for entry when unlocked, and entry doors are locked outside normal business hours. Visitors to the HEC are required to present identification, sign-in at a specified location and are issued a pass card that restricts access to non-sensitive areas. Visitors to the HEC are escorted by staff through restricted areas. At the end of the visit, visitors are required to turn in their badge. The building is equipped with an intrusion alarm system, which is activated during non-business hours. This alarm system is monitored by a private security service vendor. The office space occupied by employees with access to veteran records is secured with an electronic locking system, which requires a card for entry and exit of that office space. Access to the AAC is generally restricted to AAC staff, VA Central Office employees, custodial personnel, Federal Protective Service and authorized operational personnel through electronic locking devices. All other persons gaining access to the computer rooms are escorted. 3. Access to the VIC contractor secured work areas is also controlled by electronic entry devices, which require a card and manual input for entry and exit of the production space. The VIC contractor's building is also equipped with an intrusion alarm system and a security service vendor monitors the system. 4. Contract employees are required to sign a Business Associates Agreement
(BAA)as required by the Health Insurance Portability and Accountability Act of 1996 as acknowledgement of mandatory provisions regarding the use and disclosure of protected health information. Employee and contractor access is deactivated when no longer required for official duties or upon termination of employment. Recurring monitors are in place to ensure compliance with nationally and locally established security measures. 5. Beneficiary's enrollment and eligibility information is transmitted from the Enrollment and Eligibility information system to VA health care facilities over the Department's secure computerized electronic communications system. 6. Only specific key staff have authorized access to the computer room. Programmer access to the information systems is restricted only to staff whose official duties require that level of access. 7. On-line data reside on magnetic media in the HEC and AAC computer rooms that are highly secured. Backup media are stored in the computer room within the same building and only information system staff and designated management staff have access to the computer room. On a weekly basis, backup media are stored in off-site storage by a media storage vendor. The vendor picks up and returns the media in a locked storage container; vendor personnel do not have key access to the locked container. The AAC has established a backup plan for the Enrollment system as part of a required Certification and Accreditation of the information system. 8. Any sensitive information that may be downloaded to personal computers or printed to hard copy format is provided the same level of security as the electronic records. All paper documents and informal notations containing sensitive data are shredded prior to disposal. All magnetic media (primary computer system) and personal computer disks are degaussed prior to disposal or release off-site for repair. The VIC contractor destroys all veteran identification data 30 days after the VIC card has been mailed to the veteran in accordance with contractual requirements. 9. All new HEC employees receive initial information security and privacy training; refresher training is provided to all employees on an annual basis. The HEC's Information Security Officer performs an annual information security audit and periodic reviews to ensure security of the system. This annual audit includes the primary computer information system, the telecommunication system, and local area networks. Additionally, the IRS performs periodic on-site inspections to ensure the appropriate level of security is maintained for Federal tax data. 10. Identification codes and codes used to access Enrollment and Eligibility information systems and records systems, as well as security profiles and possible security violations, are maintained on magnetic media in a secure environment at the Center. For contingency purposes, database back-ups on removable magnetic media are stored off-site by a licensed and bonded media storage vendor. 11. Contractors, subcontractors, and other users of the Enrollment and Eligibility Records systems will adhere to the same safeguards and security requirements to which HEC staff must comply. Retention and Disposal: Regardless of the record medium, all records are disposed of in accordance with the records retention standards approved by the Archivist of the United States, National Archives and Records Administration, and published in the VHA Records Control Schedule 10-1. System Manager(s) and Addresses: Official responsible for policies and procedures: Chief Business Officer (16), VA Central Office, 1722 I St., NW., Washington, DC 20420. Official maintaining the system: Director, Health Eligibility Center, 2957 Clairmont Road, Atlanta, Georgia 30329. Notification Procedure: Any individual who wishes to determine whether a record is being maintained in this system under his or her name or other personal identifier, or wants to determine the contents of such record, should submit a written request or apply in person to the Health Eligibility Center. All inquiries must reasonably identify the records requested. Inquiries should include the individual's full name, Social Security number, military service number, claim folder number and return address. Record Access Procedures: Individuals seeking information regarding access to and contesting of Enrollment and Eligibility Records may write to the Director, Health Eligibility Center, 2957 Clairmont Road, Atlanta, Georgia 30329. Contesting Record Procedures: (See Record Access procedures above). Record Source Categories: Information in the systems of records may be provided by the applicant; applicant's spouse or other family members or accredited representatives or friends; health insurance carriers; other Federal agencies; “Patient Medical Records—VA” (24VA19) system of records; “Veterans Health Information System and Technology Architecture (VistA) Records—VA” (79VA19); “Income Verification Records—VA” (89VA19); and Veterans Benefits Administration automated record systems, including “Veterans and Beneficiaries Identification and Records Location Subsystem—VA” (38VA23) and the “Compensation, Pension, Education and Rehabilitation Records—VA” (58VA21/22). [FR Doc. E8-5956 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS Privacy Act of 1974 AGENCY: Department of Veterans Affairs. ACTION: Notice of new system of records. SUMMARY: The Privacy Act of 1974 (5 U.S.C. 552(e)(4)) requires that all agencies publish in the **Federal Register** a notice of the existence and character of their systems of records. Notice is hereby given that the Department of Veterans Affairs
(VA)is establishing a new system of records entitled “Department of Veterans Affairs Personnel Security File System (VAPSFS)”—(145VA005Q3). DATES: Comments on this new system of records must be received no later than April 24, 2008. If no public comment is received, the new system of records will become effective 30 days after publication of this Notice. ADDRESSES: Written comments may be submitted through *http://www.Regulations.gov;* by mail or hand-delivery to the Director, Regulations Management (00REG), Department of Veterans Affairs, 810 Vermont Ave., NW., Room 1068, Washington, DC 20420; or by fax to
(202)273-9026. Copies of comments received will be available for public inspection in the Office of Regulation Policy and Management, Room 1063B, between the hours of 8 a.m. and 4:30 p.m. Monday through Friday (except holidays). Please call
(202)461-4902 (This is not a toll free number) for an appointment. In addition, during the comment period, comments may be viewed online through the Federal Docket Management System
(FDMS)at *www.Regulations.gov.* FOR FURTHER INFORMATION CONTACT: VA Personal Identity Verification
(PIV)Program Manager, VA PIV Program Office, Veterans Affairs Central Office, 810 Vermont Avenue, Room B11, Washington, DC 20420,
(202)461-9759 (This is not a toll free number). SUPPLEMENTARY INFORMATION: I. Description of the Proposed System of Records The PIV Applicant may be a current or prospective Federal hire, a Federal employee, contractor, or affiliate who requires routine, long-term logical access to VA information or information systems, and/or physical access to VA facilities to perform their jobs. An affiliate is defined as a non-Federal employee or contract individual. Examples of affiliates include students, researchers, residents, veteran service organization volunteers, temporary help, interns, individuals authorized to perform or use services provided in VA facilities, and individuals formerly in any of these positions. At its discretion, VA may include short-term employees and contractors in the PIV program; therefore, these records are included in the system of records. VA shall make risk-based decisions to determine whether to issue PIV cards and to require prerequisite background checks for short-term employees, contractors, and affiliates. As required by FIPS 201, this system of records addresses VA's collection of individually-identified biographic and biometric information from the PIV Applicant in order to conduct the required PIV background investigation or other national security investigations. VA is promulgating this system of records following OMB Directive M-05-24 guidance in accordance with 5 U.S.C. a(v) in the performance of providing Privacy Act guidance to Federal agencies. The PIV background investigation matches the PIV Applicant's information against Department of Justice (DOJ), Federal Bureau of Investigation (FBI), Office of Personnel Management (OPM), and VA databases to prevent the hiring of applicants with a disqualifying criminal record, or other disqualifying issues such as severe financial problems, drug or alcohol abuse, or possible affiliations with unlawful entities, that may result in an unfavorable background adjudication. If persons decline to provide information required to conduct a background investigation, VA will not issue them a PIV card. Two forms are used to initiate the background investigation: Questionnaire for Non-Sensitive Positions Standard Form 85 (SF-85) or the Questionnaire for National Security Positions Standard Form 86 (SF-86). This background investigation process entails collecting the PIV Applicant's fingerprints, conducting a Special Agency Check (SAC), and may also include a National Agency Check with Inquires (NACI), which are described below: *SAC:* Pursuant to an agreement between VA and OPM or DOJ, a SAC consists of a fingerprint search of criminal history records by the Federal Bureau of Investigation (FBI), Criminal Justice Information Services Division. Each SAC also includes a check of OPM's Suitability/Security Investigation Index (SII). The SAC is also referred to as the Fingerprint only check. *NACI:* The basic and minimum investigation required on all new Federal employees consisting of searches of the OPM Security/Suitability Investigations Index (SII), the Defense Clearance and Investigations Index (DCII), the Federal Bureau of Investigation
(FBI)Identification Division's name and fingerprint files, and other files or indices when necessary, with written inquiries and searches of records covering specific areas of an individual's background during the past 5 years. The biographic, biometric, and background information collected as part of this PIV card enrollment process and its results are kept in secure personnel and background investigation files, for which this system of records shall manage. A separate, yet related system of records addresses the personal data collection for the remainder of the PIV enrollment process—the VA Identity Management System (VAIDMS)—which completes the identity proofing and registration and card issuance operations. The PIV Applicant presents PIV-compliant identity documents, demographic data, employment data, facial image, and fingerprints to create a data record in the VAIDMS. Together these two systems of records will collect and manage the appropriate information to allow a PIV card to be issued to authorized VA employees, contractors, or affiliates, and to effectively manage the PIV card throughout its life cycle operations. II. Proposed Routine Use Disclosures of Data in the System 1. Disclosure may be made to individuals, organizations, private or public agencies, or other entities or individuals with whom VA has a contract or agreement to perform such services as VA may deem practicable for the purposes of laws administered by VA, in order for the contractor, subcontractor, public or private agency, or other entity or individual with whom VA has an agreement or contract to perform the services of the contract or agreement. This routine use includes disclosures by the individual or entity performing the service for VA to any secondary entity or individual to perform an activity that is necessary for individuals, organizations, private or public agencies, or other entities or individuals with whom VA has a contract or agreement to provide the service to VA. 2. VA may disclose the information listed in 5 U.S.C. 7114(b)(4) to officials of labor organizations recognized under 5 U.S.C. Chapter 71 when relevant and necessary to their duties of exclusive representation concerning personnel policies, practices, and matters affecting working conditions. 3. VA may disclose the information to officials of the Merit Systems Protection Board, or the Office of the Special Counsel, when requested in connection with appeals, special studies of the civil service and other merit systems, review of rules and regulations, investigation of alleged or possible prohibited personnel practices, and such other functions, promulgated in 5 U.S.C. 1205 and 1206, or as may be authorized by law. 4. VA may disclose the information to the Equal Employment Opportunity Commission when requested in connection with investigations of alleged or possible discriminatory practices, examination of Federal affirmative employment programs, or for other functions of the Commission as authorized by law or regulation. 5. VA may disclose the information to the Federal Labor Relations Authority (including its General Counsel) information related to the establishment of jurisdiction, the investigation and resolution of allegations of unfair labor practices, or information in connection with the resolution of exceptions to arbitration awards when a question of material fact is raised; to disclose information in matters properly before the Federal Services Impasses Panel, and to investigate representation petitions and conduct or supervise representation elections. 6. VA may disclose the information to a Member of Congress or to a Congressional staff member in response to an inquiry of the Congressional office made at the written request of the constituent about whom the record is maintained. 7. VA may disclose the information to the National Archives and Records Administration or to the General Services Administration for records management inspections conducted under 44 U.S.C. 2904 and 2906. 8. VA may disclose information in this system of records to DOJ and OPM, either on VA's initiative or in response to DOJ's and OPM's request for the information, after either VA, DOJ, or OPM determines that such information is relevant to OPM's or DOJ's representation of the United States or any of its components in legal proceedings before a court or adjudicative body, provided that, in each case, the agency also determines prior to disclosure that disclosure of the records to DOJ or OPM is a use of the information contained in the records that is compatible with the purpose for which VA collected the records. VA, on its own initiative, may disclose records in this system of records in legal proceedings before a court or administrative body after determining that the disclosure of the records to the court or administrative body is a use of the information contained in the records that is compatible with the purpose for which VA collected the records. 9. VA may disclose the information, except as noted on Forms SF 85, 85-P, and 86, when a record on its face, or in conjunction with other records, indicates a violation or potential violation of law, whether civil, criminal, or regulatory in nature, and whether arising by general statute or particular program statute, or by regulation, rule, or order issued pursuant thereto, disclosure may be made to the appropriate public authority, whether Federal, foreign, State, local, or tribal, or otherwise, responsible for enforcing, investigating or prosecuting such violation or charged with enforcing or implementing the statute, or rule, regulation, or order issued pursuant thereto, if the information disclosed is relevant to any enforcement, regulatory, investigative or prosecutorial responsibility of the receiving entity. 10. VA may disclose the information to a Federal, State, local, foreign, or tribal or other public authority the fact that this system of records contains information relevant to the retention of an employee, the retention of a security clearance, the letting of a contract, or the issuance or retention of a license, grant, or other benefit. The other agency or licensing organization may then make a request supported by the written consent of the individual for the entire record if it so chooses. No disclosure will be made unless the information has been determined to be sufficiently reliable to support a referral to another office within the agency or to another Federal agency for criminal, civil, administrative personnel or regulatory action. 11. VA may disclose on its own initiative any information in this system, except the names and home addresses of veterans and their dependents, which is relevant to a suspected or reasonably imminent violation of law, whether civil, criminal or regulatory in nature and whether arising by general or program statute or by regulation, rule or order issued pursuant thereto, to a Federal, State, local, tribal, or foreign agency charged with the responsibility of investigating or prosecuting such violation, or charged with enforcing or implementing the statute, regulation, rule or order. On its own initiative, VA may also disclose the names and addresses of veterans and their dependents to a Federal agency charged with the responsibility of investigating or prosecuting civil, criminal or regulatory violations of law, or charged with enforcing or implementing the statute, regulation, rule or order issued pursuant thereto. III. Compatibility of the Proposed Routine Uses Release of information from these records pursuant to routine uses will be made only in accordance with the provisions of the Privacy Act of 1974. The Privacy Act of 1974 permits agencies to disclose information about individuals without their consent for a routine use when the information will be used for a purpose that is compatible with the purpose for which the information was collected. In the routine use disclosures proposed for this new VA system of records, VA will disclose individually-identified information for the following purposes: In connection with VA's administrative notice and rulemaking process, to contractors to perform a function associated with that process, for law-enforcement activities, and in administrative and judicial proceedings. The VA has determined that the disclosure of information for the above purposes is a proper and necessary use of the information collected by the VAPSFS system, and is compatible with the purpose for which VA collected the information. The notice of intent to publish an advance copy of the system notice has been sent to the appropriate Congressional committees and to the Director OMB as required by 5 U.S.C. 552a(r) (Privacy Act), as amended, and guidelines issued by OMB (65 FR 77677), December 12, 2000. Approved: March 11, 2008. Gordon H. Mansfield, Deputy Secretary of Veterans Affairs. 145VA005Q3 System Name: Department of Veterans Affairs Personnel Security File System (VAPSFS). System Location: Primary location: Paper records are kept at the individual VA field site locations, within the local Department of Human Resources offices, as well as the Security and Investigations Center (SIC), at Little Rock, AR. Secondary locations: Electronic records are kept at the VA Data Centers at Falling Waters, WV, Hines, IL, Austin Automation Center, Austin, TX, and at the SIC, Little Rock, AR. Categories of Individuals Covered By the System: Individuals who require routine, long-term access to VA federal facilities, and/or information technology systems to perform their jobs. VA employees, contractors, and affiliates are covered by the system of records. An affiliate is defined as a non-Federal employee or contract individual. Examples of affiliates include students, researchers, residents, veteran service organization volunteers, temporary help, interns, individuals authorized to perform or use services provided in VA facilities, and individuals formerly in any of these positions. At their discretion, VA may include short-term employees and contractors in the PIV program and, therefore, these records are included in the system of records. VA shall make risk-based decisions to determine whether to issue PIV cards and to require prerequisite background checks for short-term employees, contractors, and affiliates. The system also includes individuals accused of security violations or found in violation by VA security officials. Categories of Records in the System: Information is obtained from a variety of sources including the employee, contractor, or applicant via use of the SF-85, SF-85P, SF-86, and personal interviews; employers' and former employers' records; DOJ, FBI, OPM, DOD criminal history records and other databases; background investigation Case Number (CN), Social Security Number (SSN), fingerprints, financial institutions and credit reports; medical records and health care providers; educational institutions; interviews of witnesses such as neighbors, friends, co-workers, business associates, teachers, landlords, or family members; tax records; and other public records. VA security violation information is obtained from a variety of sources, such as guard reports, security inspections, witnesses, supervisor's reports, and audit reports. Authority for Maintenance of the System: The U.S. government is authorized to ask for this information under Executive Orders 9397, 10450, 10865, 12333, and 12356; sections 3301 and 9101 of title 5, U.S. Code; sections 2165 and 2201 of title 42, U.S. Code; sections 781 to 887 of title 50, U.S. Code; parts 5, 732, and 736 of title 5, Code of Federal Regulations; and Homeland Security Presidential Directive 12. Purpose: The records in this system of records are used to document background and security investigation information which support decisions as to the eligibility and fitness for service of VA PIV applicants for VA employment and contract positions, and may include employees, contractors, and affiliates, to the extent their duties require access to VA federal facilities and/or information systems. They may also be used to document security violations and supervisory actions taken in response to those violations. Routine Uses of Records Maintained In The System, Including Categories of Users and the Purposes of Such Uses: 1. Disclosure may be made to individuals, organizations, private or public agencies, or other entities or individuals with whom VA has a contract or agreement to perform such services as VA may deem practicable for the purposes of laws administered by VA, in order for the contractor, subcontractor, public or private agency, or other entity or individual with whom VA has an agreement or contract to perform the services of the contract or agreement. This routine use includes disclosures by the individual or entity performing the service for VA to any secondary entity or individual to perform an activity that is necessary for individuals, organizations, private or public agencies, or other entities or individuals with whom VA has a contract or agreement to provide the service to VA. 2. VA may disclose the information listed in 5 U.S.C. 7114(b)(4) to officials of labor organizations recognized under 5 U.S.C. Chapter 71 when relevant and necessary to their duties of exclusive representation concerning personnel policies, practices, and matters affecting working conditions. 3. VA may disclose the information to officials of the Merit Systems Protection Board, or the Office of the Special Counsel, when requested in connection with appeals, special studies of the civil service and other merit systems, review of rules and regulations, investigation of alleged or possible prohibited personnel practices, and such other functions, promulgated in 5 U.S.C. 1205 and 1206, or as may be authorized by law. 4. VA may disclose the information to the Equal Employment Opportunity Commission when requested in connection with investigations of alleged or possible discriminatory practices, examination of Federal affirmative employment programs, or for other functions of the Commission as authorized by law or regulation. 5. VA may disclose to the Federal Labor Relations Authority (including its General Counsel) information related to the establishment of jurisdiction, the investigation and resolution of allegations of unfair labor practices, or information in connection with the resolution of exceptions to arbitration awards when a question of material fact is raised; to disclose information in matters properly before the Federal Services Impasses Panel, and to investigate representation petitions and conduct or supervise representation elections. 6. VA may disclose the information to a Member of Congress or to a Congressional staff member in response to an inquiry of the Congressional office made at the written request of the constituent about whom the record is maintained. 7. VA may disclose the information to the National Archives and Records Administration or to the General Services Administration for records management inspections conducted under 44 U.S.C. 2904 and 2906. 8. VA may disclose information in this system of records to the Department of Justice
(DOJ)and OPM, either on VA's initiative or in response to DOJ's and OPM's request for the information, after either VA, DOJ, or OPM determines that such information is relevant to OPM's or DOJ's representation of the United States or any of its components in legal proceedings before a court or adjudicative body, provided that, in each case, the agency also determines prior to disclosure that disclosure of the records to the DOJ or OPM is a use of the information contained in the records that is compatible with the purpose for which VA collected the records. VA, on its own initiative, may disclose records in this system of records in legal proceedings before a court or administrative body after determining that the disclosure of the records to the court or administrative body is a use of the information contained in the records that is compatible with the purpose for which VA collected the records. 9. VA may disclose the information, except as noted on Forms SF 85, 85-P, and 86, when a record on its face, or in conjunction with other records, indicates a violation or potential violation of law, whether civil, criminal, or regulatory in nature, and whether arising by general statute or particular program statute, or by regulation, rule, or order issued pursuant thereto, disclosure may be made to the appropriate public authority, whether Federal, foreign, State, local, or tribal, or otherwise, responsible for enforcing, investigating or prosecuting such violation or charged with enforcing or implementing the statute, or rule, regulation, or order issued pursuant thereto, if the information disclosed is relevant to any enforcement, regulatory, investigative or prosecutorial responsibility of the receiving entity. 10. VA may disclose the information to a Federal, State, local, foreign, or tribal or other public authority the fact that this system of records contains information relevant to the retention of an employee, the retention of a security clearance, the letting of a contract, or the issuance or retention of a license, grant, or other benefit. The other agency or licensing organization may then make a request supported by the written consent of the individual for the entire record if it so chooses. No disclosure will be made unless the information has been determined to be sufficiently reliable to support a referral to another Federal agency for criminal, civil, administrative personnel or regulatory action. 11. VA may disclose on its own initiative any information in this system, except the names and home addresses of veterans and their dependents, which is relevant to a suspected or reasonably imminent violation of law, whether civil, criminal or regulatory in nature and whether arising by general or program statute or by regulation, rule or order issued pursuant thereto, to a Federal, State, local, tribal, or foreign agency charged with the responsibility of investigating or prosecuting such violation, or charged with enforcing or implementing the statute, regulation, rule or order. On its own initiative, VA may also disclose the names and addresses of veterans and their dependents to a Federal agency charged with the responsibility of investigating or prosecuting civil, criminal or regulatory violations of law, or charged with enforcing or implementing the statute, regulation, rule or order issued pursuant thereto. Policies and Practices for Storing, Retrieving, Accessing, Retaining, and Disposing of Records In the System: Storage: Records are stored on paper and electronically in secure VA locations. Retrievability: Background investigation records are retrieved by case number (CN), name, Social Security Number (SSN), or fingerprint. Safeguards: For paper records: Comprehensive paper records are kept in locked metal file cabinets in locked rooms at the field site Department of Human Resources offices, and the SIC, Little Rock, AR. The paper records are maintained in controlled facilities where physical entry is restricted by the use of locks, guards, and administrative procedures. Access to the records is limited to those employees who have a need for them in the performance of their official duties. In addition, all personnel whose official duties require access to the information have undergone appropriate background investigations and are trained and certified in the proper safeguarding and use of the information. For electronic records: Electronic records pertaining to any background investigation data collected during the PIV enrollment process are kept in the PIV Identity Management System maintained at VA Data Centers in Falling Waters, WV; Hines, IL; Austin Automation Data Center, Austin, TX; and at the SIC, Little Rock, AR. Electronic records are maintained in a secure, password protected electronic system that utilizes security hardware and software to include: Encryption, multiple firewalls, active intruder detection, and role-based access controls. Access to the records is restricted to those with a specific role in the PIV administrative process that requires access to background investigation forms to perform their duties, and who have been given authorization and password to access that part of the system. An audit trail is maintained and reviewed periodically to identify attempts to access, and actual unauthorized access events. Persons given roles in the PIV process have undergone appropriate background investigations and must complete training and be certified in their specific roles to ensure they are knowledgeable about how to protect sensitive and individually-identified information. Retention and Disposal: These records are retained and disposed of in accordance with General Records Schedule 18, item 22, approved by the National Archives and Records Administration (NARA). Records are destroyed upon notification of death or not later than five years after separation or transfer of employee, whichever is applicable. System Manager and Address: VA PIV Program Manager, Office of Information and Technology (005Q3), Department of Veterans Affairs, 810 Vermont Ave., NW., Room B-11, Washington, DC 20420; telephone
(202)461-9759 (This is not a toll free number). Notification Procedures: An individual can determine if this system contains a record pertaining to him/her by sending a signed written request to the Systems Manager. When requesting notification of or access to records covered by this Notice, an individual should provide his/her full name, date of birth, agency name, and work location. An individual requesting notification of records in person must provide identity documents sufficient to satisfy the custodian of the records that the requester is entitled to access, such as a government-issued photo ID. Individuals requesting notification via mail or telephone must furnish, at minimum, name, date of birth, social security number, and home address in order to establish identity. Record Access Procedure: Same as notification procedures. Contesting Record Procedure: Same as notification procedures. Requesters should also reasonably identify the record, specify the information they are contesting, state the corrective action sought and the reasons for the correction along with supporting justification showing why the record is not accurate, timely, relevant, or complete. Record Source Categories: Information is obtained from a variety of sources including the employee, contractor, or affiliate applicant via use of the SF-85, SF-85P, or SF-86 and personal interviews; employer's and former employers' records; FBI criminal history records and other databases; financial institutions and credit reports; medical records and health care providers; educational institutions; interviews of witnesses such as neighbors, friends, co-workers, business associates, teachers, landlords, or family members; tax records; and other public records. VA security violation information is obtained from a variety of sources, such as guard reports, security inspections, witnesses, supervisor's reports, and audit reports. Exemptions Claimed For The System: Upon publication of a final rule in the **Federal Register** , this system of records will be exempt in accordance with 5 U.S.C. 552a(k)(5). Information will be withheld to the extent it identifies witnesses promised confidentiality as a condition of providing information during the course of the background investigation. [FR Doc. E8-5969 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P DEPARTMENT OF VETERANS AFFAIRS Privacy Act of 1974 AGENCY: Department of Veterans Affairs. ACTION: Notice of amendment to system of records. SUMMARY: As required by the Privacy Act of 1974 (5 U.S.C. 552(e)(4)), notice is hereby given that the Department of Veterans Affairs
(VA)is amending the system of records currently entitled, “Department of Veterans Affairs Federal Docket Management System (VAFDMS)—(140VA00REG)” as set forth in the **Federal Register** on February 9, 2007. VA is amending the system by revising the routine uses of records maintained in the system, including categories of users and the purpose of such uses. VA is republishing the system notice in its entirety. DATES: Comments on the amendment of this system of records must be received no later than April 24, 2008. If no public comment is received, the new system will become effective April 24, 2008. ADDRESSES: Written comments may be submitted through *http://www.Regulations.gov;* by mail or hand-delivery to the Director, Regulations Management (00REG), Department of Veterans Affairs, 810 Vermont Avenue, NW., Room 1068, Washington, DC, 20420; or by fax to
(202)273-9026. Comments should indicate that they are submitted in response to the amendment of “Department of Veterans Affairs Federal Docket Management System (VAFDMS)—(140VA00REG).” Copies of comments received will be available for public inspection in the Office of Regulation Policy and Management, Room 1063B, between the hours of 8 a.m. and 4:30 p.m., Monday through Friday (except holidays). Please call
(202)461-4902 for an appointment. In addition, during the comment period, comments may be viewed online through the Federal Docket Management System at *http://www.Regulations.gov.* FOR FURTHER INFORMATION CONTACT: William F. Russo, Privacy Officer, or Janet Coleman, Office of Regulation Policy and Management (00REG), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420,
(202)461-4902. SUPPLEMENTARY INFORMATION: A Notice of Establishment of New System of Records was published in the **Federal Register** on February 9, 2007 (72 FR 6315). I. Description of the System of Records The Department of Veterans Affairs Federal Docket Management System (VAFDMS) permits the Department of Veterans Affairs
(VA)to identify individuals, who have submitted comments in response to VA rulemaking documents or notices so that communications or other actions, as appropriate and necessary, can be effected, such as to seek clarification of the comment, to directly respond to a comment, and for other activities associated with the rulemaking or notice process. Identification is possible only if the individual voluntarily provides identifying information when submitting a comment. If such information is not furnished, the submitted comments and/or supporting documentation cannot be linked to an individual. VAFDMS permits members of the public to search the public comments received by name of the individual submitting the comment. Unless the individual submits the comment anonymously, a name search will result in the comment being displayed for view. Comments may be searched by other means whether submitted anonymously or by an identified individual. If the comment is submitted electronically using VAFDMS, the viewed comment will not include the name of the submitter or any other identifying information about the individual except that, which the submitter has opted to include as part of his or her general comments. If a comment is submitted by an individual on his or her own behalf, in writing, that has been scanned and uploaded into VAFDMS, unless the individual submits the comment anonymously, the submitter's name will be on the comment, but other personally identifying information will be redacted before it is scanned and uploaded. Comments submitted on behalf of organizations in writing that have to be scanned and uploaded into VAFDMS, will not be redacted. II. Proposed Amendments to Routine Use Disclosures of Data in the System VA is rewriting existing routine uses in the System using plain language. The use of plain language in these routine uses does not, and is not intended to, change the disclosures authorized under these routine uses. VA is amending, deleting, rewriting and reorganizing the order of the routine uses in this system of records, as well as adding new routine uses. Accordingly, the following changes are made to the current routine uses and are incorporated into the amended system of records notice: Current routine use number 1 is being renumbered as routine use number 4, and is amended to more accurately reflect VA's authorization to disclose individually-identifiable information to contractors or other entities that will provide services to VA for which the recipient needs that information in order to perform the services. VA is not amending current routine use number 2, but VA is renumbering it as routine use number 8. VA is renumbering current routine use number 3 as routine use number 5, and amending it, with minor word changes, to more accurately reflect the conditions under which VA, on its own initiative, may disclose information from this system of records for law enforcement purposes. Current routine use number 4 is being renumbered as new routine use number 3, and is being amended, with minor word changes, to more clearly state when VA may disclose information in legal proceedings, and when VA may disclose information to the Department of Justice. In determining whether to disclose records under this routine use, VA will comply with the guidance promulgated by the Office of Management and Budget
(OMB)in a May 24, 1985, memorandum entitled “Privacy Act Guidance—Update” currently posted at *http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.whitehouse.gov/omb/inforeg/guidance1985.pdf.* VA is adding new routine use number 1 authorizing when VA may disclose the record of an individual to a Member of Congress, or a staff person acting for the Member. New routine use number 2 is being added to authorize disclosure to the National Archives and Records Administration in records management inspections conducted under authority of Title 44 U.S.C. VA is adding new routine use number 6 authorizing when VA may disclose to other Federal agencies in assisting such agencies in preventing and detecting possible fraud or abuse by individuals in their operations and programs. Finally, VA is adding new routine use number 7 that authorizes the circumstances, and to whom, VA may disclose records in order to respond to, and minimize possible harm to, individuals as a result of a data breach. This routine use is promulgated in order to meet VA's statutory duties under 38 U.S.C. 5724 and The Privacy Act, 5 U.S.C. 552a, as amended. III. Compatibility of the Proposed Routine Uses Release of information from these records, pursuant to routine uses, will be made only in accordance with the provisions of the Privacy Act of 1974. The Privacy Act of 1974 permits agencies to disclose information about individuals, without their consent, for a routine use when the information will be used for a purpose that is compatible with the purpose for which the information was collected. VA has determined that the disclosure of information for the above purposes in the proposed amended to routine uses is a proper and necessary use of the information collected by the VAFDMS system, and is compatible with the purpose for which VA collected the information. The notice of intent to publish an advance copy of the system notice has been sent to the appropriate Congressional Committees and to the Director of the Office of Management and Budget (OMB), as required by 5 U.S.C. 552a(r) (Privacy Act), as amended, and guidelines issued by OMB (65 FR 77677), December 12, 2000. Approved: March 11, 2008. Gordon H. Mansfield, Deputy Secretary of Veterans Affairs. 140VA00REG System Name: Department of Veterans Affairs Federal Docket Management System (VAFDMS) System Location: *Primary location:* Electronic records are kept at the U.S. Environmental Protection Agency, Research Triangle Park, NC 27711-0001. Secondary location: Paper records are kept at Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420. Categories of Individuals Covered By the System: Individuals who voluntarily provide personal contact information when submitting a public comment and/or supporting materials in response to a Department of Veterans Affairs rulemaking document or notice. Categories of Records In the System: Full name, postal address, e-mail address, phone and fax numbers of the individual submitting comments, the name of the organization or individual that the individual represents (if any), and the comments, as well as other supporting documentation, furnished by the individual. Comments may include personal information about the commenter. Authority for Maintenance of the System: 44 U.S.C. 3501, Note; Pub. L. 107-347, sec. 206(d); Note; 5 U.S.C. 301, and 553. Purpose: To permit the Department of Veterans Affairs
(VA)to identify individuals, who have submitted comments in response to VA rulemaking documents or notices, so that communications or other actions, as appropriate and necessary, can be effected, such as to seek clarification of the comment, to directly respond to a comment, and for other activities associated with the rulemaking or notice process. Routine Uses of Records Maintained In the System, Including Categories of Users and the Purposes of Such Uses: 1. The record of an individual who is covered by a system of records may be disclosed to a Member of Congress, or a staff person acting for the Member, when the Member or staff person requests the record on behalf of and at the written request of the individual. 2. Disclosure may be made to the National Archives and Records Administration in records management inspections conducted under authority of Title 44 U.S.C. 3. VA may disclose information from this system of records to the Department of Justice (DoJ), either on VA's initiative or in response to DoJ's request for the information, after either VA or DoJ determines that such information is relevant to DoJ's representation of the United States or any of its components in legal proceedings before a court or adjudicative body, provided that, in each case, the agency also determines prior to disclosure that release of the records to the DoJ is a use of the information contained in the records that is compatible with the purpose for which VA collected the records. VA, on its own initiative, may disclose records in this system of records in legal proceedings before a court or administrative body after determining that the disclosure of the records to the court or administrative body is a use of the information contained in the records that is compatible with the purpose for which VA collected the records. 4. Disclosure of relevant information may be made to individuals, organizations, private or public agencies, or other entities with whom VA has a contract or agreement or where there is a subcontract to perform such services as VA may deem practicable for the purposes of laws administered by VA, in order for the contractor or subcontractor to perform the services of the contract or agreement. 5. VA may disclose on its own initiative any information in the system, except the names and home addresses of veterans and their dependents, that is relevant to a suspected or reasonably imminent violation of the law whether civil, criminal, or regulatory in nature and whether arising by general or program statute or by regulation, rule, or order issued pursuant thereto, to a Federal, state, local, tribal, or foreign agency charged with the responsibility of investigating or prosecuting such violation, or charged with enforcing or implementing the statute, regulation, rule, or order. VA may also disclose on its own initiative the names and addresses of veterans and their dependents to a Federal agency charged with the responsibility of investigating or prosecuting civil, criminal, or regulatory violations of law, or charged with enforcing or implementing the statute, regulation, or order issued pursuant thereto. 6. Disclosure to other Federal agencies may be made to assist such agencies in preventing and detecting possible fraud or abuse by individuals in their operations and programs. 7. VA may, on its own initiative, disclose any information or records to appropriate agencies, entities, and persons when
(1)VA suspects or has confirmed that the integrity or confidentiality of information in the system of records has been compromised;
(2)the Department has determined that as a result of the suspected or confirmed compromise, there is a risk of embarrassment or harm to the reputations of the record subjects, harm to economic or property interests, identity theft or fraud, or harm to the security, confidentiality, or integrity of this system or other systems or programs (whether maintained by the Department or another agency or entity) that rely upon the potentially compromised information, and
(3)the disclosure is to agencies, entities, or persons whom VA determines are reasonably necessary to assist or carry out the Department's efforts to respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm. This routine use permits disclosures by the Department to respond to a suspected or confirmed data breach, including the conduct of any risk analysis or provision of credit protection services as provided in 38 U.S.C. 5724, as the terms are defined in 38 U.S.C. 5727. 8. VA may disclose information contained in this System of Records, as necessary, to comply with the requirements of the Administrative Procedure Act
(APA)that comments are available for public review if submitted in response to VA's solicitation of public comments as part of the Agency's notice and rulemaking activities under the APA. However, VA will not release individually-identifiable personal information, such as an individual's address or home telephone number, under this routine-use, except where VA determines that publication without redaction was intended by the submitter. Policies and Practices for Storing, Retrieving, Accessing, Retaining, and Disposing of Records In the System:
(a)Storage: Records are maintained on electronic storage media and paper.
(b)Retrievability: Records are retrieved by various data elements and key word searches, among which are by: Name, Agency, Docket Type, Docket Sub-Type, Agency Docket ID, Docket Title, Docket Category, Document Type, CFR Part, Date Comment Received, and **Federal Register** Published Date.
(c)Safeguards: Electronic records are maintained in a secure, password protected, electronic system that utilizes security hardware and software to include: Multiple firewalls, active intruder detection, and role-based access controls. Paper records are maintained in a controlled facility, where physical entry is restricted by the use of locks, guards, and/or administrative procedures. Access to records is limited to those officials who require the records to perform their official duties consistent with the purpose for which the information was collected. All personnel whose official duties require access to the information are trained in the proper safeguarding and use of the information.
(d)Retention and Disposal: Records will be maintained and disposed of, in accordance with records disposition authority, approved by the Archivist of the United States. System Manager(s) and Addresses: William F. Russo, Privacy Officer, Office of Regulation Policy and Management (00REG), Department of Veterans Affairs, 810 Vermont Ave., NW., Washington, DC 20420; telephone
(202)461-4902. Notification Procedures: Individuals seeking to determine whether this System of Records contains information about themselves should address written inquiries to the Office of Regulation Policy and Management (00REG), Department of Veterans Affairs, 810 Vermont Ave., NW., Washington, DC 20420. Requests should contain the full name, address and telephone number of the individual making the inquiry. Record Access Procedure: Individuals seeking to access or contest the contents of records, about themselves, contained in this System of Records should address a written request, including full name, address and telephone number to the Office of Regulation Policy and Management (00REG), Department of Veterans Affairs, 810 Vermont Ave., NW., Washington, DC 20420. Contesting Record Procedure: (See Record Access Procedure above.) Record Source Categories: Individual. Exemptions Claimed for the System: There are no exemptions being claimed for this system. [FR Doc. E8-6041 Filed 3-24-08; 8:45 am] BILLING CODE 8320-01-P 73 58 Tuesday, March 25, 2008 Presidential Documents Title 3— The President Proclamation 8227 of March 20, 2008 Greek Independence Day: A National Day of Celebration of Greek and American Democracy, 2008 By the President of the United States of America A Proclamation On Greek Independence Day, we recognize the important contributions Greek Americans have made to our national character, celebrate the deep friendship between our two countries, and honor the anniversary of the Greek call for independence. The United States and Greece share a close relationship based on our common belief in the power of freedom. The ancient Athenians gave birth to the principles of democracy, and America's Founding Fathers were inspired by Greek ideals that honored and respected human dignity and rights. When the people of Greece claimed their independence in 1821, they had the strong support of the United States. Greek patriots risked their lives because they knew freedom and democracy were both their proud legacy and their ultimate destiny. Today, our nations remain allies in the cause of freedom and are working to lay the foundations of peace and spread the blessings of liberty around the world. In celebrating Greek Independence Day, we commemorate the heritage of freedom our countries hold dear, and we remember the Greek Americans whose strong spirit, resolve, and courage helped shape America. NOW, THEREFORE, I, GEORGE W. BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim March 25, 2008, as Greek Independence Day: A National Day of Celebration of Greek and American Democracy. I call upon all Americans to observe this day with appropriate ceremonies and activities. IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of March, in the year of our Lord two thousand eight, and of the Independence of the United States of America the two hundred and thirty-second. GWBOLD.EPS [FR Doc. 08-1075 Filed 3-24-08; 8:45 am]
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U.S. Code
- Purposes§ 3501
- Registration, responsibilities, and oversight of self-regulatory organizations§ 78s
- National securities exchanges§ 78f
- Definitions and application§ 78c
- Public information; agency rules, opinions, orders, records, and proceedings§ 552
- Discrimination against neutral Americans in time of war§ 77
- Registered securities associations§ 78o–3
- Records maintained on individuals§ 552a
- Acceptance of volunteer service§ 3111
- Transferred§ 2753
- General responsibilities for records management§ 2904
- Inspection of agency records§ 2906
- Evidence, procedure, and certification for payments§ 405
- Immunity from seizure under judicial process of cultural objects imported for temporary exhibition or display§ 2459
- Purposes§ 6501
- Importing motor vehicles capable of complying with standards§ 30141
- Certification of compliance§ 30115
- Notification of defects and noncompliance§ 30118
- Federal agency responsibilities§ 3506
- Confidentiality and disclosure of returns and return information§ 6103
- Management of health care: patient enrollment system§ 1705
- Confidential nature of claims§ 5701
- Provision of credit protection and other services§ 5724
- Definitions§ 5727
- Approval of certain projects§ 1320
- Representation rights and duties§ 7114
- Transmittal of information to Congress§ 1205
- Departmental regulations§ 301
- CIVIL RIGHTS COLD CASE RECORDS COLLECTION AT THE NATIONAL ARCHIVES AND RECORD ADMINISTRATION.§ 3
CFR
- Delegation of authority to Director of Division of Trading and Markets.§ 200.30-3
- Definitions of terms.§ 230.405
- Form 8-K, for current reports.§ 249.308
- Form 10-K, for annual and transition reports pursuant to sections 13 or 15(d) of the Securities Exchange Act of 1934.§ 249.310
- (Item 10) General.§ 229.10
- (Item 401) Directors, executive officers, promoters and control persons.§ 229.401
- (Item 407) Corporate governance.§ 229.407
- What conditions apply for variable interest rates?§ 120.214
- Terms of Third Party loans.§ 120.921
- How a 504 Project is financed.§ 120.801
- Verifying your identity.§ 401.45
- How to get your own records.§ 401.40
- How to correct your record.§ 401.65
register
public-private-law
26 references not yet in our index
- Pub. L. 104-13
- 17 CFR 240.19
- 17 CFR 240.12
- 17 CFR 228.10-228
- 17 CFR 229.10-229
- 17 CFR 228.401(e)
- 17 CFR 240.17
- 15 USC 78(f)(b)(5)
- 15 USC 78s-1(b)(3)(A)(i)
- 20 CFR 401
- 79 Stat. 985
- 49 CFR 223.11
- 49 CFR 592
- 49 CFR 593.7
- 49 CFR 593.8
- 49 CFR 1.50
- 49 CFR 571.225
- 49 CFR 573
- 49 CFR 556
- T.D. 8546
- T.D. 7430
- 44 USC 3501-3521
- Pub. L. 104-191
- 100 Stat. 1936
- 45 CFR 164.501
- Pub. L. 107-347
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Pub. L.Pub. L. 104-13
Cite17 CFR 240.19
Cite17 CFR 240.12
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