[Federal Register Volume 81, Number 195 (Friday, October 7, 2016)]
[Notices]
[Pages 69881-69884]
[FR Doc No: 2016-24279]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79025; File No. SR-NASDAQ-2016-106]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing of Proposed Rule Change To Modify Rule IM-5900-7 To
Adjust the Entitlement to Services of Acquisition Companies

October 3, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on September 22, 2016, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') 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 by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to modify the treatment of acquisition
companies under IM-5900-7.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaq.cchwallstreet.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, 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Nasdaq proposes to modify IM-5900-7 to change the treatment of
acquisition companies under that rule.
    Nasdaq offers complimentary services under IM-5900-7 to companies
listing on the Nasdaq Global and Global Select Markets in connection
with an initial public offering, upon emerging from bankruptcy, or in
connection with a spin-off or carve-out from another company
(``Eligible New Listings'') and to companies that switch their listing
from the New York Stock Exchange (``NYSE'') to the Global or Global
Select Markets (``Eligible Switches'').\4\
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    \4\ See Exchange Act Release No. 65963 (December 15, 2011), 76
FR 79262 (December 21, 2011) (SR-NASDAQ-2011-122) (adopting IM-5900-
7); Exchange Act Release No. 72669 (July 24, 2014), 79 FR 44234
(July 30, 2014) (SR-NASDAQ-2014-058) (adopting changes to IM-5900-
7); Exchange Act Release No. 78806 (September 9, 2016), 81 FR 63523
(September 15, 2016) (SR-NASDAQ-2016-098). These adopting releases
are collectively referred to as the ``Prior Filings.''
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    Nasdaq believes that the complimentary service program offers
valuable services to newly listing companies, designed to help ease the
transition of becoming a public company or switching markets, makes
listing on Nasdaq more attractive to these companies, and also provides
Nasdaq Corporate Solutions the opportunity to demonstrate the value of
its services and forge a relationship with the company. The services
offered include a whistleblower hotline, investor relations Web site,
disclosure services for earnings or other press releases, webcasting,
market analytic tools, and may include market advisory

tools such as stock surveillance. Depending on a company's market
capitalization and whether it is an Eligible New Listing or an Eligible
Switch, the value of the services provided range from $141,000 to
$754,000, and one-time development fees of approximately $3,500 are
waived.\5\ In addition, all companies listed on Nasdaq receive services
from Nasdaq, including Nasdaq Online and the Market Intelligence Desk.
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    \5\ The exact values are set forth in IM-5900-7 and no change to
these services or their values is proposed in this filing.
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    Generally, Nasdaq will not permit the initial or continued listing
of a company that has no specific business plan or that has indicated
that its business plan is to engage in a merger or acquisition with an
unidentified company or companies. However, in the case of a company
whose business plan is to complete an initial public offering and
engage in a merger or acquisition with one or more unidentified
companies within a specific period of time (an ``Acquisition
Company''), Nasdaq will permit the listing if the company meets all
applicable initial listing requirements, as well as the additional
conditions described in IM-5101-2. These additional conditions
generally require, among other things, that at least 90% of the gross
proceeds from the initial public offering must be deposited in a
``deposit account,'' as that term is defined in the rule, and that the
company complete within 36 months, or a shorter period identified by
the company, one or more business combinations having an aggregate fair
market value of at least 80% of the value of the deposit account at the
time of the agreement to enter into the initial combination.
    Acquisition Companies do not have operating businesses and tend to
trade infrequently and in a tight range until the company completes an
acquisition. In addition, Acquisition Companies issue few press
releases and frequently do not have detailed Web sites. Therefore, upon
listing, these companies do not generally need shareholder
communication services, market analytic tools or market advisory tools,
and generally would only benefit from the complimentary whistleblower
hotline provided under IM-5900-7.\6\ Accordingly, Nasdaq proposes to
provide that an Acquisition Company listing on the Global Market \7\
before it has satisfied the requirement of IM-5101-2(b), whether as an
Eligible New Listing or an Eligible Switch, will not receive
complimentary services under IM-5900-7.\8\
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    \6\ It typically takes more than two years for an Acquisition
Company to identify a target and complete an acquisition. As a
result, the term of any complimentary services offered to an
Acquisition Company under IM-5900-7 as an Eligible New Listing would
usually expire before the company acquired a target and began
operating as an operating company that could benefit from the
services.
    \7\ Rule 5310(i) provides that a company subject to IM-5101-2 is
not eligible to list on the Global Select Market.
    \8\ To date, all companies listing under IM-5101-2 have listed
on the Capital Market. The services described in IM-5900-7 are not
available to companies listing on the Capital Market.
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    However, once an Acquisition Company completes a business
combination with an operating company, the combined company is much
like any other newly public company and could benefit from the
complimentary services Nasdaq offers other newly public companies.
Accordingly, Nasdaq proposes to include in the definition of an
``Eligible New Listing'' that receives complimentary services under IM-
5900-7 an Acquisition Company that completes a business combination
that satisfies the conditions in IM-5101-2(b) and that lists on the
Global or Global Select Market in conjunction with that business
combination.\9\
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    \9\ The company would receive the same services under IM-5900-7,
with the same value, as any other Eligible New Listing.
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    For purposes of IM-5900-7, Nasdaq will treat a company previously
listed on the Capital Market as listing on the Global or Global Select
Market in conjunction with a business combination that satisfies the
conditions in IM-5101-2(b) if it files an application to list on the
Global or Global Select Market before completing the combination and
demonstrates compliance with all applicable criteria within 60 days of
completing the business combination. This additional time may be
required, in some cases, to allow the issuance of shares in the
transaction and then for the newly formed entity to obtain information
from third parties to demonstrate compliance with the shareholder and
public float requirements.
    If the Acquisition Company is listed on the Global Market at the
time it completes a business combination that satisfies the conditions
in IM-5101-2(b) and remains listed on the Global Market or transfers to
the Global Select Market, the complimentary period will commence on the
date of such business combination.\10\ If the Acquisition Company is
listed on the Capital Market at the time it completes the business
combination that satisfies the conditions in IM-5101-2(b), the
complimentary period will commence on the date of listing on the Global
or Global Select Market.\11\ In either case, however, if the company
lists on the Global or Global Select Market and begins to use a
particular service provided under IM-5900-7 within 30 days after the
date of the business combination, the complimentary period for that
service will begin on the date of first use.
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    \10\ An Acquisition Company must meet the initial listing
requirements at the time of its business combination even if it is
already listed on the Global Market. See IM-5101-2(d).
    \11\ An Acquisition Company that was listed on the Capital
Market before the business combination would remain on the Capital
Market until it demonstrates compliance with the applicable Global
or Global Select Market initial listing criteria.
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    Nasdaq also proposes to delete a reference in the existing rule
text to ``NASDAQ'' when referring to the Global and Global Select
Markets, to conform to other references to the Global and Global Select
Markets within the rule. Finally, Nasdaq proposes to update the
introductory note in IM-5900-7 to include the specific date that a
prior change to the rule was approved. This change is designed to ease
understanding of the rule and eliminate the need to cross-reference the
approval order for that prior change.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\12\ in general, and Section
6(b)(4), in particular, in that the proposal is designed, among other
things, to provide for the equitable allocation of reasonable dues,
fees, and other charges among Nasdaq members and issuers and other
persons using its facilities. Nasdaq also believes that the proposed
rule change is consistent with Section 6(b)(5) in that it is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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    \12\ 15 U.S.C. 78f.
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    Nasdaq faces competition in the market for listing services,\13\
and competes, in part, by offering valuable services to companies.
Nasdaq believes that it is reasonable to offer complimentary services
to attract and retain listings as part of this competition. All
similarly situated companies are eligible for the same package of
services.
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    \13\ The Justice Department has noted the intense competitive
environment for exchange listings. See ``NASDAQ OMX Group Inc. and
IntercontinentalExchange Inc. Abandon Their Proposed Acquisition of
NYSE Euronext After Justice Department Threatens Lawsuit'' (May 16,
2011), available at http://www.justice.gov/atr/public/press_releases/2011/271214.htm.
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    Nasdaq also believes it is reasonable, and not unfairly
discriminatory, to offer

complimentary services to a company described in IM-5101-2 that
acquires an operating business, ceases to be an Acquisition Company,
and lists (or remains listed) on the Global or Global Select Market.
When a company described in IM-5101-2 acquires an operating business
and ceases to be an Acquisition Company, the company is similar to
other Eligible New Listings, such as initial public offerings, and will
have increased need to focus on identifying and communicating with its
shareholders. Like the other Eligible New Listings that receive
complimentary services under the existing rule, these companies are
transitioning to the traditional public company model and the
complimentary services provided will help ease that transition. In
addition, these companies will be purchasing many of these services for
the first time, and offering complimentary services will provide Nasdaq
Corporate Solutions the opportunity to demonstrate the value of its
services and forge a relationship with the company at a time when it is
choosing its service providers. For these reasons, Nasdaq believes it
is not an inequitable allocation of fees nor unfairly discriminatory to
offer the services to a company described in IM-5101-2 when it
completes a business combination satisfying IM-5101-2(b).
    In addition, because Acquisition Companies described in IM-5101-2
have little use for services upon listing, and because they will be
eligible to receive services if they complete a business combination
satisfying IM-5101-2(b), Nasdaq does not think it is unfairly
discriminatory to modify the rule so that a company described in IM-
5101-2 does not receive services upon listing.
    An Acquisition Company could list on the Global Market at the time
of its initial public offering, but never complete an acquisition that
satisfies the requirements of IM-5101-2(b). While under the proposed
rule change such a company would never receive complimentary services,
Nasdaq does not believe that the services generally would be useful to
the Acquisition Company and the Acquisition Company therefore would not
suffer any meaningful detriment as a consequence.
    Allowing an Acquisition Company up to 30 days after completing a
business combination to start using the complimentary services reflects
Nasdaq's experience that it can take companies a period of time to
review and complete necessary contracts and training following their
becoming eligible for those services. Allowing this modest 30-day
period, if the company needs it, helps ensure that the company will
have the benefit of the full period permitted under the rule to
actually use the services, thus giving companies the full intended
benefit.
    Defining a company to be listing in conjunction with a business
combination that satisfies the conditions in IM-5101-2(b) to include a
company listed on the Capital Market that both filed an application to
list on the Global or Global Select Market before completing the
business combination and demonstrated compliance with all applicable
criteria for the Global or Global Select Market within 60 days of
completing the business combination reflects Nasdaq's experience that
such a company may need a period of as long as 60 days to obtain
information from third parties to demonstrate compliance with the
listing requirements. Beginning the complimentary period for a company
in this situation on the date of its listing on the Global or Global
Select Market is consistent with the period provided to other Eligible
New Listings and Eligible Switches, which begins on the date of
listing. Moreover, prior to that point, there is no certainty as to
whether the company will qualify for the Global or Global Select Market
and be eligible to receive the services and, as a result, complimentary
services could not be provided prior to that date. Nasdaq believes that
this 60-day period appropriately recognizes the practical problem that
a company may have with demonstrating compliance with the initial
listing requirements for the Global or Global Select Market at exactly
the time of its business combination. However, a company that takes
advantage of this time period cannot further extend the start of the
complimentary period by using an additional 30-day period to start
using the complimentary services.
    Nasdaq further believes that it is not unfairly discriminatory to
limit this 60-day period to Acquisition Companies transitioning from
the Capital Market to the Global or Global Select Market and to not
also extend it to Acquisition Companies already listed on the Global
Market. An Acquisition Company that is listed on the Global Market was
required to have 400 round lot holders upon initially listing and is
required to have 400 total holders for continued listing. As a result,
Nasdaq expects it would be rare for a company already on the Global
Market to need additional time to demonstrate compliance with this, or
other, initial listing requirement. Nasdaq believes that this is a non-
discriminatory reason to distinguish between these types of companies.

B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq 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. The proposed rule
change reflects Nasdaq's ongoing assessment of the competitive market
for listings and does not place any unnecessary burden on that
competition. In many cases, an Acquisition Company will consider
transferring to a new listing venue when it completes a business
combination. The proposed rule change will allow Nasdaq to compete to
retain these companies by offering them a package of complimentary
services that assists their transition to being a traditional public
company.
    Nasdaq believes that when the complimentary period ends, a former
Acquisition Company that had acquired an operating business will be
more likely to continue to use the Nasdaq Corporate Solutions service
or a competing service, whereas otherwise they may not be exposed to
the value of these services and therefore may not purchase any. This
will create additional users of the service class and enhance
competition among service providers.
    In addition, other service providers can also offer similar
services to companies, thereby increasing competition to the benefit of
those companies and their shareholders. Accordingly, Nasdaq does not
believe the proposed rule change will impose 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

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Within 45 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 60 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 shall: (a) By order approve
or disapprove 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 email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2016-106 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2016-106. This
file number should be included on the subject line if email 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the 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-NASDAQ-2016-106 and should
be submitted on or before October 28, 2016.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-24279 Filed 10-6-16; 8:45 am]
 BILLING CODE 8011-01-P


	On September 4, 2008, staff from the Antimicrobials Division met with
Beyond Pesticides and several other environmental and consumer advocacy
groups (see attached sign-in sheet).  Beyond Pesticides asked to meet
with staff from the Antimicrobials Division to discuss the comments that
they submitted to the triclosan public docket regarding the triclosan
preliminary risk assessment and supporting science chapters.  The
following was included in an agenda provided by Beyond Pesticides:

Timing of the EPA regulatory decision

Secondary effects (impacts related to bacterial resistance, impact on
medical uses)

Water impacts (detection in drinking water, sludge and relationship to
food residues)

Methodology for aggregate and cumulative risk assessment

Triclocarban and common mechanism of effect

Data gaps

EPA coordination with FDA


[Federal Register Volume 79, Number 74 (Thursday, April 17, 2014)]
[Proposed Rules]
[Pages 21661-21663]
[FR Doc No: 2014-08785]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 100

[Docket Number USCG-2014-0005]
RIN 1625-AA08

Special Local Regulations; Beaufort Water Festival, Beaufort, SC

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to establish a special local
regulation pertaining to the Beaufort Water Festival from 11:30 a.m.
through 4:30 p.m. on July 19, 2014. This action is necessary to ensure
safety of life on navigable waters of the United States during the
Beaufort Water Festival Air Show. During the enforcement period, the
special local regulation establishes a regulated area which all people
and vessels will be prohibited from entering, transiting through,
anchoring, or remaining within. Vessels may enter, transit through,
anchor in, or remain within the area if authorized by the Captain of
the Port Charleston or a designated representative.

DATES: Comments and related material must be received by the Coast
Guard on or before May 19, 2014. Requests for public meetings must be
received by the Coast Guard on or before April 04, 2014.

ADDRESSES: You may submit comments identified by docket number using
any one of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax:<PHONE_NUMBER>.
    (3) Mail or Delivery: Docket Management Facility (M-30), U.S.
Department of Transportation, West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue SE., Washington, DC 20590-0001. Deliveries
accepted between 9 a.m. and 5 p.m., Monday through Friday, except
federal holidays. The telephone number is<PHONE_NUMBER>.
    See the ``Public Participation and Request for Comments'' portion
of the SUPPLEMENTARY INFORMATION section below for further instructions
on submitting comments. To avoid duplication, please use only one of
these three methods.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Chief Warrant Officer Christopher Ruleman, Sector
Charleston Office of Waterways Management, Coast Guard; telephone
(843)-740-3184, email<EMAIL_ADDRESS>If you have
questions on viewing or submitting material to the docket, call Cheryl
Collins, Program Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Table of Acronyms

DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking

A. Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting
comments and related materials. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided.

1. Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation. You may submit your comments and material online at
http://www.regulations.gov, or by fax, mail, or hand delivery, but
please use only one of these means. If you submit a comment online, it
will be considered received by the Coast Guard when you successfully
transmit the comment. If you fax, hand deliver, or mail your comment,
it will be considered as having been received by the Coast Guard when
it is received at the Docket Management Facility. We recommend that you
include your name and a mailing address, an email address, or a
telephone number in the body of your document so that we can contact
you if we have questions regarding your submission.
    To submit your comment online, go to http://www.regulations.gov,
type the docket number [USCG-2014-0005] in the ``SEARCH'' box and click
``SEARCH.'' Click on ``Submit a Comment'' on the line associated with
this rulemaking.
    If you submit your comments by mail or hand delivery, submit them
in an unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit comments by mail and would
like to know that they reached the Facility, please enclose a stamped,
self-addressed postcard or envelope. We will consider all comments and
material received during the comment period and may change the rule
based on your comments.

2. Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
type the docket number (USCG-2014-0005) in the ``SEARCH'' box and click
``SEARCH.'' Click on Open Docket Folder on the line associated with
this rulemaking. You may also visit the Docket Management Facility in
Room W12-140 on the ground floor of the Department of Transportation
West Building, 1200 New Jersey Avenue SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays.

3. Privacy Act

    Anyone can search the electronic form of 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 a Privacy Act notice
regarding our public dockets in the January 17, 2008, issue of the
Federal Register (73 FR 3316).

4. Public Meeting

    We do not now plan to hold a public meeting, but you may submit a
request for one on or before April 04, 2014 using

one of the four methods specified under ADDRESSES. Please explain why
you believe a public meeting would be beneficial. If we determine that
one would aid this rulemaking, we will hold one at a time and place
announced by a later notice in the Federal Register. For information on
facilities or services for individuals with disabilities or to request
special assistance at the public meeting, contact the person named in
the FOR FURTHER INFORMATION CONTACT section, above.

B. Basis and Purpose

    The legal basis for the proposed rule is the Coast Guard's
authority to establish special local regulations: 33 U.S.C. 1233. The
purpose of the proposed rule is to ensure safety of life and property
on the navigable waters of the United States during the Beaufort Water
Festival.

C. Discussion of Proposed Rule

    This temporary rule creates a regulated area that will encompass a
portion of the waterway that is 700 ft wide by 2600 ft in length, whose
approximate corner coordinates are as follows:

32[deg]25'47'' N/080[deg]40'44'' W,
32[deg]25'41'' N/080[deg]40'14'' W,
32[deg]25'35'' N/080[deg]40'16'' W,
32[deg]25'40'' N/080[deg]40'46'' W,
    Spectator vessels may safely transit outside the regulated area,
but are prohibited from entering, transiting through, anchoring, or
remaining within the regulated area. The Coast Guard may be assisted by
other Federal, State, or local law enforcement agencies in enforcing
this regulation.

D. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analyses based on a number of these statutes or executive orders.

1. Regulatory Planning and Review

    This proposed rule is not a significant regulatory action under
section 3(f) of Executive Order 12866, Regulatory Planning and Review,
as supplemented by Executive Order 13563, Improving Regulation and
Regulatory Review, and does not require an assessment of potential
costs and benefits under section 6(a)(3) of Executive Order 12866 or
under section 1 of Executive Order 13563. The Office of Management and
Budget has not reviewed it under those Orders. The economic impact of
this proposed rule is not significant for the following reasons: (1)
The special local regulations would be enforced for only five hours (2)
although persons and vessels would not be able to enter, transit
through, anchor, or remain within the regulated area without
authorization from the Captain of the Port Charleston or a designated
representative, they would be able to operate in the surrounding area
during the enforcement periods; (3) persons and vessels would still be
able to enter, transit through, anchor in, or remain within the
regulated area if authorized by the Captain of the Port Charleston or a
designated representative; and (4) the Coast Guard would provide
advance notification of the regulated area to the local maritime
community by Local Notice to Mariners and Broadcast Notice to Mariners.

2. Impact on Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered the impact of this proposed rule on small entities. The
Coast Guard certifies under 5 U.S.C. 605(b) that this proposed rule
will not have a significant economic impact on a substantial number of
small entities. The Coast Guard certifies under 5 U.S.C. 605(b) that
this proposed rule would not have a significant economic impact on a
substantial number of small entities. If you think that your business,
organization, or governmental jurisdiction qualifies as a small entity
and that this rule would have a significant economic impact on it,
please submit a comment (see ADDRESSES) explaining why you think it
qualifies and how and to what degree this rule would economically
affect it.

3. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule. If the rule would affect
your small business, organization, or governmental jurisdiction and you
have questions concerning its provisions or options for compliance,
please contact the person listed in the FOR FURTHER INFORMATION
CONTACT, above. The Coast Guard will not retaliate against small
entities that question or complain about this proposed rule or any
policy or action of the Coast Guard.

4. Collection of Information

    This proposed rule will not call for a new collection of
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520.).

5. Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this proposed rule under that Order and
determined that this rule does not have implications for federalism.

6. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places or vessels.

7. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this proposed rule would not
result in such an expenditure, we do discuss the effects of this rule
elsewhere in this preamble.

8. Taking of Private Property

    This proposed rule would not cause a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.

9. Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.

10. Protection of Children From Environmental Health Risks

    We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not an economically significant rule and would not
create an environmental risk to health or risk to safety that might
disproportionately affect children.

11. Indian Tribal Governments

    This proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

12. Energy Effects

    This proposed rule is not a ``significant energy action'' under
Executive Order 13211, Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use.

13. Technical Standards

    This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.

14. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and
have made a preliminary determination that this action is one of a
category of actions which do not individually or cumulatively have a
significant effect on the human environment. This proposed rule
involves establishing a special local regulation issued in conjunction
with a regatta or marine parade, as described in figure 2-1, paragraph
(34)(h), of the Instruction. Under figure 2-1, paragraph (34)(h) of the
Instruction, an environmental analysis checklist and a categorical
exclusion determination are not required for this proposed rule. We
seek any comments or information that may lead to the discovery of a
significant environmental impact from this proposed rule.

List of Subjects in 33 CFR Part 100

    Marine safety, Navigation (water), Reporting and recordkeeping
requirements, Waterways.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 100 as follows:

PART 100--SAFETY OF LIFE ON NAVIGABLE WATERS

0
1. The authority citation for part 100 continues to read as follows:

    Authority:  33 U.S.C. 1233.

0
2. Add a temporary Sec.  100.T07-0005 to read as follows:

Sec.  100.T07-0005  Special Local Regulations; Beaufort Water Festival,
Beaufort, SC.

    (a) Regulated Area. The following location is a regulated area:
Certain waters of the Beaufort River, within the following points;
32[deg]25'47'' N/080[deg]40'44'' W, 32[deg]25'41'' N/080[deg]40'14'' W,
32[deg]25'35'' N/080[deg]40'16'' W, 32[deg]25'40'' N/080[deg]40'46'' W.
All coordinates are North American Datum 1983. This zone will create a
regulated area that will encompass a portion of the waterway that is
700 ft wide by 2600 ft in length.
    (b) Definition. The term ``designated representative'' means Coast
Guard Patrol Commanders, including Coast Guard coxswains, petty
officers, and other officers operating Coast Guard vessels, and
Federal, state, and local officers designated by or assisting the
Captain of the Port Charleston in the enforcement of the regulated
areas.
    (c) Regulations.
    (1) All persons and vessels, except those participating in the
Beaufort Water Festival Airshow, or serving as safety vessels, are
prohibited from entering, transiting through, anchoring, or remaining
within the regulated area. Persons and vessels desiring to enter,
transit through, anchor in, or remain within the regulated area may
contact the Captain of the Port Charleston by telephone at (843) 740-
7050, or a designated representative via VHF radio on channel 16, to
request authorization. If authorization to enter, transit through,
anchor in, or remain within the regulated area is granted by the
Captain of the Port Charleston or a designated representative, all
persons and vessels receiving such authorization must comply with the
instructions of the Captain of the Port Charleston or a designated
representative.
    (2) The Coast Guard will provide notice of the regulated area by
Marine Safety Information Bulletins, Local Notice to Mariners,
Broadcast Notice to Mariners, and on-scene designated representatives.
    (d) Enforcement Date. This rule will be enforced from 11:30 a.m.
until 4:30 p.m. on July 19, 2014.

    Dated: April 2, 2014.
R.R. Rodriguez,
Captain, U.S. Coast Guard, Captain of the Port Charleston.
[FR Doc. 2014-08785 Filed 4-16-14; 8:45 am]
BILLING CODE 9110-04-P