[Federal Register Volume 82, Number 13 (Monday, January 23, 2017)]
[Notices]
[Pages 7884-7885]
[FR Doc No: 2017-01301]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79802; File No. SR-NYSEArca-2016-96]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of
Designation of a Longer Period for Commission Action on Proceedings To
Determine Whether To Approve or Disapprove a Proposed Rule Change, as
Modified by Amendment No. 2 Thereto, To Amend NYSE Arca Equities Rule
8.700 and To List and Trade Shares of the Managed Emerging Markets
Trust Under Proposed Amended NYSE Arca Equities Rule 8.700

January 13, 2017.
    On July 1, 2016, NYSE Arca, Inc. (``Exchange'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to amend NYSE Arca
Equities Rule 8.700 and to list and trade shares of the Managed
Emerging Markets Trust under proposed amended NYSE Arca Equities Rule
8.700. The proposed rule change was published for comment in the
Federal Register on July 21, 2016.\3\ On August 30, 2016, pursuant to
Section 19(b)(2) of the Act,\4\ the Commission designated a longer
period within which to approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
disapprove the proposed rule change.\5\ On October 18, 2016, the
Commission instituted proceedings to determine whether to approve or
disapprove the proposed rule change.\6\ On November 4, 2016, the
Exchange filed Amendment No. 1 to the proposed rule change, which
replaced and superseded the original filing in its entirety.\7\ On
January 9, 2017, the Exchange filed Amendment No. 2 to the proposed
rule change, which again replaced and superseded the original filing in
its entirety.\8\ The Commission

received no comments on the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 78345 (July 15,
2016), 81 FR 47447.
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 78727, 81 FR 61268
(September 6, 2016).
    \6\ See Securities Exchange Act Release No. 79111, 81 FR 73179
(October 24, 2016).
    \7\ Amendment No. 1 is available at: https://www.sec.gov/comments/sr-nysearca-2016-96/nysearca201696-1.pdf.
    \8\ Amendment No. 2 is available at: https://www.sec.gov/comments/sr-nysearca-2016-96/nysearca201696-1473646-130472.pdf.
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    Section 19(b)(2) of the Act \9\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of filing of the proposed rule
change. The Commission may extend the period for issuing an order
approving or disapproving the proposed rule change, however, by not
more than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on July 21, 2016. January 17, 2017 is 180 days from
that date, and March 18, 2017 is 240 days from that date.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).
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    The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change so that it has sufficient time to consider this proposed
rule change. Accordingly, the Commission, pursuant to Section 19(b)(2)
of the Act,\10\ designates March 18, 2017 as the date by which the
Commission shall either approve or disapprove the proposed rule change
(File No. SR-NYSEArca-2016-96), as modified by Amendment No. 2.
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    \10\ Id.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(57).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-01301 Filed 1-19-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 116 (Thursday, June 16, 2011)]
[Notices]
[Pages 35210-35211]
[FR Doc No: 2011-14882]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER11-3736-000]

Pocahontas Prairie Wind, LLC; Supplemental Notice That Initial
Market-Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced proceeding of
Pocahontas Prairie Wind, LLC's application for market-based rate
authority, with an accompanying rate tariff, noting that such
application includes a request for blanket authorization, under 18 CFR
Part 34, of future issuances of securities and assumptions of
liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214). Anyone filing a motion to intervene or protest must serve a
copy of that document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is June 28, 2011.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426.

    The filings in the above-referenced proceeding are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site that enables subscribers to receive e-mail notification
when a document is added to a subscribed docket(s). For assistance with
any FERC Online service, please e-mail<EMAIL_ADDRESS>or
call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

    Dated: June 8, 2011.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2011-14882 Filed 6-15-11; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 78, Number 42 (Monday, March 4, 2013)]
[Proposed Rules]
[Pages 14053-14060]
[FR Doc No: 2013-04866]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Part 67

[Docket No. USCG-2010-0990]
RIN 1625-AB56

Vessel Documentation Renewal Fees

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to amend its regulations to
separately list an annual fee for renewals of endorsements upon the
Certificate of Documentation. The Coast Guard is required to establish
user fees for services related to the documentation of vessels. This
proposed rule would separately list a fee of $26 to cover the current
costs of the vessel documentation services provided by the Coast Guard.

DATES: Comments and related material must either be submitted to our
online docket via http://www.regulations.gov on or before May 3, 2013
or reach the Docket Management Facility by that date.

ADDRESSES: You may submit comments identified by docket number USCG
2010-0990 using any one of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax:<PHONE_NUMBER>.
    (3) Mail: 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.
    (4) Hand delivery: Same as mail address above, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The telephone
number is<PHONE_NUMBER>.
    To avoid duplication, please use only one of these four methods.
See the ``Public Participation and Request for Comments'' portion of
the SUPPLEMENTARY INFORMATION section below for instructions on
submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed
rule, call or email Mary Jager, CG-DCO-832, Coast Guard, telephone 202-
372-1331, email<EMAIL_ADDRESS>If you have questions on viewing
or submitting material to the docket, call Renee V. Wright, Program
Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Public Participation and Request for Comments
    A. Submitting Comments
    B. Viewing Comments and Documents
    C. Privacy Act
    D. Public Meeting
II. Abbreviations
III. Background
IV. Discussion of Proposed Rule
V. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards
    M. Environment

I. 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.

A. Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking (USCG-2010-0990), 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 or by fax, mail, or hand delivery, but please use only one of
these means. We recommend that you include your name and a mailing
address, an email address, or a phone 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 and
type ``USCG-2010-0990'' in the ``Keyword'' box. 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 us, please enclose a stamped, self-addressed postcard or
envelope.
    We will consider all comments and material received during the
comment period and may change this proposed rule based on your
comments.

B. 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 and
insert ``USCG-2010-0990'' in the ``Search'' box. Click ``Search.''
Click the ``Open Docket Folder'' in the ``Actions'' column. If you do
not have access to the Internet, you may view the docket online by
visiting 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. We have an agreement
with the Department of Transportation to use the Docket Management
Facility.

C. 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).

D. Public Meeting

    We do not now plan to hold a public meeting. But you may submit a
request for one to the docket using one of the methods specified under
ADDRESSES. In your request, 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 (FR).

II. Abbreviations

CFR Code of Federal Regulations
COD Certificate of Documentation
DHS Department of Homeland Security
FR Federal Register
MISLE Marine Safety Information Law Enforcement
NEPA National Environmental Policy Act of 1969
NTTAA National Technology Transfer and Advancement Act
NVDC National Vessel Documentation Center
OMB Office of Management and Budget
Sec.  Section symbol
SBA Small Business Administration
U.S.C. United States Code

III. Background

    The Omnibus Budget Reconciliation Act of 1990 (the ``Act'') (Pub.
L. 101-508, Sec.  10401, Nov. 5, 1990, 104 Stat. 1388), codified at 46
U.S.C. 2110, requires that the Coast Guard establish user fees for
Coast Guard vessel documentation services. In establishing these fees,
we are required to use the criteria found in 31 U.S.C. 9701, including,
among other things, that the fees be fair, be based on the costs to the
government, and reflect the value of the service or thing to the
recipient, the public policy or interest served. See 31 U.S.C. 9701(b).
We also set fees at an amount calculated to achieve recovery of the
costs to the Federal Government of providing the service in a manner
consistent with the general user charges principles set forth in OMB
Circular A-25. Under that OMB Circular, each recipient should pay a
reasonable user charge for Federal Government services, resources, or
goods from which he or she derives a special benefit, at an amount
sufficient for the Federal Government to recover the full costs of
providing the service, resource, or good. See OMB Circular A-25, sec.
6(a)(2)(a).
    We last promulgated our user fees for vessel documentation services
on November 15, 1993 (58 FR 60256), found at 46 CFR part 67, subpart Y-
Fees. The fees reflect the Coast Guard's program costs for 1993. Since
then, these costs have increased. The existing fees do not cover the
operating and overhead costs associated with our vessel documentation
and recording activities under 46 U.S.C. chapters 121 and 313. This
rule proposes to update those fees.
    Specifically, this rule proposes to charge a separate annual fee
for renewals of endorsements upon a Certificate of Documentation (COD).
A COD is required for the operation of a vessel in certain trades,
serves as evidence of vessel nationality, and permits a vessel to be
subject to preferred mortgages. 46 CFR 67.1. The proposed COD renewal
fee would more accurately reflect the Coast Guard's current operating
and overhead costs associated with providing these discrete services.
While we previously included the cost of providing annual COD renewals
as part of its overhead costs, the fees collected in relation to these
costs do not nearly cover our operating and overhead costs associated
with providing annual COD renewal services. Therefore, the we to break
out and separately charge an annual renewal fee (shown in Table 67.550-
Fees) to cover the cost of providing the required annual COD renewal
services.
    The Coast Guard's fiscal year 2010 review of vessel documentation
user charges, ``Vessel Documentation Biennial User Fee Review,'' is
available in the docket where indicated under the ``Public
Participation and Request for Comments'' section in this preamble. The
Biennial User Fee Review

recommended establishment of an annual fee for COD renewals. It also
recommended establishment of a fee for resubmittals of requests for
services such as applications, determinations, waivers, etc. We have
elected not to pursue the latter recommendation at this time, but will
consider this fee in future studies and possibly in future rulemaking
actions.
    Presently, we charge several other fees associated with vessel
documentation and we anticipate that further review (as required by OMB
Circular Number A-25) of these fees and the cost of service will result
in additional proposed adjustments to reflect changes in cost and
provision of services. Any of these additional proposed adjustments
would be the subject of a separate rulemaking.

IV. Discussion of Proposed Rule

    Through this proposed rule, the Coast Guard would revise 46 CFR
67.515 to provide for a $26 fee for annual renewals of endorsements
upon the COD and to explain that the late fee, which is an existing
fee, is in addition to the annual COD renewal fee. The proposed fee is
less than the average annual fee charged by states for similar
activities leading to vessel registration. Furthermore, the proposed
fee is less than the annual fee for recreational vessels authorized by
Congress for collection in 1993 and 1994. During those years, an annual
fee for recreational vessels was instituted with fees ranging from $35
to $100. See Public Law 102-582, Title V, Sec.  501(a), Nov. 2, 1992,
106 Stat. 4909.
    We also propose removing and reserving paragraph (b) in 46 CFR
67.500, because it states that there is no fee for annual renewal of
endorsements upon the COD. Lastly, we propose to amend the fee table in
46 CFR 67.550 to include the annual COD renewal fee.
    We propose the annual COD renewal fee to increase collections by
the amounts authorized so that the fees we charge would more accurately
reflect the actual costs to the Coast Guard of providing the annual COD
renewal services. We estimate that this proposed fee would generate an
additional $6.1 million annually. The additional collections generated
through the annual COD renewal fee should offset the costs of providing
these services.
    According to the Vessel Documentation Biennial User Fee Review,
which can be found in the Docket for this rulemaking, the full cost of
vessel documentation services for fiscal year 2009 was $11.3 million,
while total fees collected totaled $5.3 million, as shown in Table 1.
Fees are currently collected for 22 activities associated with vessel
documentation that are listed in Table 67.550 of 46 CFR part 67.
Currently, no separate fee is collected to cover the cost of processing
annual COD renewals; that fee was included as overhead in other fees.
The Biennial Review concluded that a minimal fee for annual COD
renewals based on the full cost of providing that specific service
would reliably decrease or eliminate the collections gap.

                                  Table 1--NVDC Costs and Fees Collected, 2009
                                                  [In millions]
----------------------------------------------------------------------------------------------------------------
                                                                               Renewal fees
                       Full cost                           Fees collected       collected          Difference
----------------------------------------------------------------------------------------------------------------
($11.30)...............................................             $5.30              $0.00            ($6.00)
----------------------------------------------------------------------------------------------------------------

    In 2011, we conducted a comprehensive study to more accurately
calculate the costs involved with the annual COD renewal process. Our
``Full Cost Study for Renewal of Endorsements on Certificates of
Documentation'' focuses on the cost of annual COD renewals, updates the
cost figures, and includes costs for the additional activities required
to process collections. The cost study is available in the docket where
indicated under the ``Public Participation and Request for Comments''
section in the preamble.
    The average number of annual renewals for 2006-2010 was 235,000.
The renewals accounted for approximately 65,000 commercial and 200,000
recreational vessels documented by the Coast Guard in 2010. Under this
proposed rule, we anticipate that the cost for processing annual COD
renewals and their associated fees would be approximately $6 million,
as shown in Table 2. The full cost to provide the annual renewal
service shown in Table 2 includes directly traced personnel costs
calculated from timed activities, allocated personnel costs based on
costs associated with personnel directly involved and in supporting
roles, and other costs such as operating and administrative costs,
facilities, and information systems costs.
    Since COD renewal and collection services are provided with enough
frequency, a reliable estimate of the average time involved was
calculated. Personnel cost is calculated based on an hourly rate that
represents the cost per hour or part thereof per employee. The employee
cost is based on hourly rates found in COMDTINST 7310.1M, Coast Guard
Reimbursable Standard Rates, available at http://uscg.mil/directives/ci/7000-7999/CI_7310_1M.PDF. The National Vessel Documentation Center
(NVDC) anticipates that the method for collecting fees will be similar
to the current process for late renewals, with some additional
activities for processing the payment (collections) in accordance with
U.S. law and federal guidance.\1\ The total annual cost to operate the
NVDC annual COD renewal program and collect fees is approximately $6
million; the proposed fee reflects this cost, and should close the
current gap identified in the Biennial Review.
---------------------------------------------------------------------------

    \1\ The Department of the Treasury publishes regulations and
guidance for federal agency management of receipts (31 CFR part 206
and the Treasury Financial Manual (www.fms.treas.gov/tfm/index.html)).
---------------------------------------------------------------------------

    To calculate the annual renewal fee, we divided the total annual
costs associated with the renewal program by the average number of
annual renewals. The directly traced personnel costs are for those
activities that were included in a timed study. These activities
represent a small, mostly automated portion of the full process. The
allocated personnel costs are other direct and indirect personnel costs
that could not be included in the time study due to complexity of
activities. Some of this cost is based on additional steps necessary to
process applications with payments, which, at least initially, will be
a manual rather than automated process. Other costs are non-personnel
operating and are also allocated costs. The allocated cost is based on
a percent of standard personnel costs for positions based on relative
volume of renewals produced. Table 2 shows these costs.

                                      Table 2--Cost Inputs for Renewal Fee
----------------------------------------------------------------------------------------------------------------
                                                                                Average
                                                                                number of       Cost per
                                                                    Total cost     renewals  per      renewal
                                                                                year
----------------------------------------------------------------------------------------------------------------
Directly traced Personnel Costs.................................      $2,044,500         235,000           $8.70
Allocated Personnel Costs.......................................       1,695,799         235,000            7.21
Other Costs.....................................................       2,157,209         235,000            9.17
                                                                 -----------------------------------------------
    Total.......................................................       5,898,508         235,000           25.08
----------------------------------------------------------------------------------------------------------------
Note: These numbers may not total due to rounding.

    This total cost to the Coast Guard is shown by the following
equation: the total cost divided by the average number of renewals
($5,898,508/235,000 CODs = $25.08/COD), which results in an annual
renewal fee of $25.08, which is rounded up to the next dollar, $26.
This allows us to recover the full cost of providing this service.
    When formulating this proposal, we also considered an alternate
methodology to calculate the annual COD renewal fee. This alternative
fee was derived from taking the average of the fees charged by each
state on an annual basis. The average fee, on an annual basis, for the
50 states and the District of Columbia is approximately $42. This
average, multiplied by the number of annual renewals, yields a value of
approximately $10 million. Since the annual collections under this
methodology would exceed the cost of providing the service, and full
cost results provided a more reasonable fee, we rejected this
alternative.

V. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below, we summarize our
analyses based on 14 of these statutes or executive orders.

A. Regulatory Planning and Review

    Executive Orders 12866 (``Regulatory Planning and Review'') and
13563 (``Improving Regulation and Regulatory Review'') direct agencies
to assess the costs and benefits of available regulatory alternatives
and, if regulation is necessary, to select regulatory approaches that
maximize net benefits (including potential economic, environmental,
public health and safety effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, of reducing costs, of harmonizing rules, and of
promoting flexibility. Two additional executive orders were recently
published to promote the goals of Executive Order 13563: Executive
Orders 13609 (``Promoting International Regulatory Cooperation'') and
13610 (``Indentifying and Reducing Regulatory Burdens''). Executive
Order 13609 targets international regulatory cooperation to reduce,
eliminate, or prevent unnecessary differences in regulatory
requirements. Executive Order 13610 aims to modernize the regulatory
systems and to reduce unjustified regulatory burdens and costs on the
public.
    Initially, this proposed rule had been designated a ``significant
regulatory action,'' although not economically significant, under
section 3(f) of Executive Order 12866. Accordingly, the NPRM was
reviewed by the Office of Management and Budget. However, upon review,
the Office of Managagement and Budget determined that this NPRM 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 that Order. Nonetheless, we developed an analysis of the
costs and benefits of the proposed rule to ascertain its probable
impacts on industry.
    The cost outlined in this proposed rule would represent a transfer
payment from the public to the government to offset the costs to the
U.S. Coast Guard to provide COD renewal services. The following table
summarizes the costs and benefits of this proposed rule.

            Table 3--Costs and Benefits of the Proposed Rule
------------------------------------------------------------------------
                Category                       Estimate (millions)
------------------------------------------------------------------------
                        Costs (Transfer Payments)
------------------------------------------------------------------------
Annual Monetized Costs (undiscounted     $6.1
 rounded values).
10-year Present Value Monetized Costs    42.9
 (rounded values, 7% discount rate,
 discounting begins in first year).
------------------------------------------------------------------------
                                Benefits
------------------------------------------------------------------------

Qualitative Benefits...................  This proposal would allow the
                                          Federal Government to recoup
                                          its costs for administering
                                          COD renewals, enabling the
                                          Coast Guard to continue
                                          offering these services to the
                                          public.
------------------------------------------------------------------------

    As discussed above, this proposed rule would require an annual
renewal fee for all endorsements on the CODs. This fee, which is based
on the costs that the Federal Government currently incurs to process
renewals, along with additional costs due to increased need in labor
and capital costs, would cost each vessel owner $26 per renewal.
    The renewal fee that would be charged to the public under this
proposed rule is based on the full cost to the Federal Government to
provide this service. The renewal fee would

allow the Federal Government to recoup those costs. The purpose of the
renewal fee is to ensure that this service is self-sustaining. As such,
the renewal fee would be determined by dividing the full, annual cost
of providing the service by the average number of renewals over the
past 5 years. The full, annual cost of providing this service includes
all current costs, such as labor, capital, and overhead, plus
additional labor and capital costs that will be required to process the
additional fees collected. The following figure summarizes the annual
cost estimate of the proposed rule. See the ``Discussion of Proposed
Rule'' section and Table 2 for more detail on the data used for this
estimate.

Figure 1. Total Annual Costs (Undiscounted)

Total Annual Proposed Cost = Renewal Fee x Average Number of Annual
Renewals = $6.1 Million = $26 x 235,000 renewals.\2\
---------------------------------------------------------------------------

    \2\ Value may not total due to rounding.
---------------------------------------------------------------------------

    The benefit of this proposed rule is to allow the Federal
Government to recoup its costs for administering COD renewals, enabling
the Coast Guard to continue offering these services to the public.

B. Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this proposed rule would have a significant economic
impact on a substantial number of small entities. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000.
    For this proposed rule, we reviewed size and ownership data of
affected entities by using data provided by the NVDC and public and
proprietary data sources for company revenue and employee size data. We
determined that there are approximately 18,164 entities owning 65,534
commercial vessels that would be impacted by this proposed rule.\3\
These entities include businesses and government jurisdictions. The
remaining vessel population is comprised of recreational vessels that
are not included in this initial regulatory flexibility analysis
because these vessels are owned by individuals and individuals are not
considered to be small entities for the purpose of the Regulatory
Flexibility Act.
---------------------------------------------------------------------------

    \3\ Data provided by the National Vessel Documentation Center.
---------------------------------------------------------------------------

    To conduct our analysis, we chose a random sample of 400 affected
entities.\4\ We were able to find revenue or employee size data for 88
of these entities using Web sites, such as MANTA and ReferenceUSA. This
included 83 businesses and five government jurisdictions. We did not
find any small not-for-profit organizations that are independently
owned and operated and are not dominant in their fields.
---------------------------------------------------------------------------

    \4\ A sample size of 400 provides a 95 percent confidence level
at a confidence interval of 5.
---------------------------------------------------------------------------

    To determine the size of the 83 businesses with available revenue
or employee size data, we used the North American Industry
Classification System (NAICS) codes to identify the line of business
for the entities in our sample and compared the data found to the small
business size standards determined by the Small Business Administration
(SBA).\5\ Of the entities with data, 70 are considered small by SBA
size standards and 13 exceeded SBA size standards for small businesses.
We also assume that those entities without data available are small.
---------------------------------------------------------------------------

    \5\ SBA has established a Table of Small Business Size
Standards, which is matched to the North American Industry
Classification System (NAICS) industries. A size standard, which is
usually stated in number of employees or average annual receipts
(``revenues''), represents the largest size that a business
(including its subsidiaries and affiliates) may be to remain
classified as a small business for SBA and Federal contracting
programs. See http://www.sba.gov/size.
---------------------------------------------------------------------------

    To determine the size of the five affected government
jurisdictions, we used the definition from the Regulatory Flexibility
Act Sec.  601(5), which classifies small government jurisdictions as
jurisdictions with a population of less than 50,000. Of the five
government jurisdictions, one has a population of less than 50,000, and
would therefore be considered small.
    As such, we estimate that more than 95 percent of all entities that
would be affected by this proposed rule are small entities. We do not
anticipate a significant economic impact to these small entities as a
result of this proposed rule. This proposed rule would require that all
entities renewing the endorsements on their COD pay an annual renewal
fee of $26 per documented vessel. This proposed rule impacts a diverse
set of industry sectors with a wide range of fleet sizes and revenues.
Table 4 provides example data for three affected small businesses that
represent the upper, lower, and median values for revenue, fleet size,
and cost found within the sample population. Our research shows that
those entities with the largest fleets, as thus a greater incurred
cost, also have the highest reported revenue in our sample.

               Table 4--Example Revenue, Vessel Count, and Cost for Three Affected Small Entities
----------------------------------------------------------------------------------------------------------------
                                             Small entity                                      Small entity
               Category                   representing lower          Small entity          representing upper
                                                bound             representing median             bound
----------------------------------------------------------------------------------------------------------------
Revenue per Entity...................  $15,000................  $336,000...............  $12,000,000*
Vessel Count.........................  1......................  2......................  6.
Costs per Entity.....................  $26....................  $52....................  $156.
Percent Impact of Renewal Fees on      Less than 0.2%.........  Less than 0.02%........  Approximately 0.0013%.
 Revenues.
----------------------------------------------------------------------------------------------------------------
*Note: The small entity with this revenue is classified under NAICS 336611, Ship Building and Repairing, and has
  an SBA size standard of 1,000 employees. This means entities in this industry with 1,000 or fewer employees
  would be considered small. This entity has 54 employees and was determined small even though its annual
  revenues are $12 million.

    By multiplying the renewal fee by the number of documented vessels
owned by each entity analyzed from our sample, we were able to
calculate the cost per entity from this proposed rule. We then used
that cost to determine a percentage of revenue impact on the entity by
dividing the total cost per entity by the revenue. This analysis showed
that the impact from this proposed rule would be less than 1 percent of
annual revenue for small businesses in the sample.
    The one small government jurisdiction in our sample operated three
vessels that would require COD renewals for a total of $78 in annual
COD renewal fees. Given that the cost to this small government
jurisdiction is only $78, we expect this proposed rule would not cause
a significant economic impact.

    Therefore, 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 to the Docket Management Facility at the
address under ADDRESSES. In your comment, explain why you think it
qualifies and how and to what degree this rule would economically
affect it.

C. 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 so that they can better
evaluate its effects on them and participate in the rulemaking. If the
proposed rule would affect your small business, organization, or
governmental jurisdiction and you have questions concerning its
provisions or options for compliance, please consult Mary Jager, CG-
DCO-832, Coast Guard; telephone<PHONE_NUMBER>, email
<EMAIL_ADDRESS>The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

D. Collection of Information

    This proposed rule calls for no new collection of information under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

E. Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on state or local
governments and would either preempt state law or impose a substantial
direct cost of compliance on them. We have analyzed this proposed rule
under that Order and have determined that it does not have implications
for federalism.

F. 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.

G. 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.

H. 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.

I. Protection of Children

    We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This proposed 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.

J. Indian Tribal Governments

    To determine whether the proposed rule would have an impact on any
Indian tribal governments, we queried Marine Safety Information Law
Enforcement (MISLE) to obtain a list of vessels potentially owned by
Indian tribes. We discovered that there are approximately six different
tribes with nine vessels that are documented. There are a very small
number of vessels per tribe and we do not believe that the proposed
rule would have a substantial impact on any of the tribes.
Consequently, we have initially determined that 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.
    The Coast Guard recognizes the treaty rights of Native American
Tribes. Moreover, the Coast Guard is committed to working with Tribal
Governments to develop rules and to mitigate tribal concerns. Indian
Tribes that have questions concerning the provisions of this proposed
rule or believe that our initial determination is incorrect are
encouraged to submit information to the docket for review and
consideration.

K. Energy Effects

    We have analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order. Though it is a ``significant
regulatory action'' under Executive Order 12866, it is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.

L. Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies.
    This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.

M. 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 that do not individually or cumulatively have a significant
effect on the human environment. A preliminary environmental analysis
checklist supporting this determination is available in the docket
where indicated under the ``Public Participation and Request for
Comments'' section of this preamble. This proposed rule involves a new
annual fee for renewals of endorsements upon the COD and falls under
paragraph 34(a) of the Coast Guard's NEPA Implementing Procedures and
Policy for Considering

Environmental Impacts, COMDTINST M16475.1D. 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 46 CFR Part 67

    Reporting and recordkeeping requirements, Vessels.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 46 CFR part 67 as follows:

PART 67--DOCUMENTATION OF VESSELS

0
1. The authority citation for 46 CFR part 67 continues to read as
follows:

    Authority: 14 U.S.C. 664; 31 U.S.C. 9701; 42 U.S.C. 9118; 46
U.S.C. 2103, 2107, 2110, 12106, 12120, 12122; 46 U.S.C. app. 841a,
876; Department of Homeland Security Delegation No. 0170.1.

Sec.  67.500  [Amended]

0
2. In Sec.  67.500, remove and reserve paragraph (b).
0
3. Revise Sec.  67.515 to read as follows:

Sec.  67.515  Application for renewal of endorsements.

    An application fee is charged for annual renewal of endorsements on
Certificates of Documentation in accordance with subpart L of this
part.
0
4. Revise Sec.  67.517 to read as follows:

Sec.  67.517  Application for late renewal.

    In addition to any other fees required by this subpart, including a
renewal fee, a fee is charged for a late renewal in accordance with
subpart L of this part.
0
5. Revise Table 67.550 to read as follows:

Sec.  67.550  Fee table.

* * * * *

                           Table 67.550--Fees
------------------------------------------------------------------------
          Activity                     Reference                Fee
------------------------------------------------------------------------
Applications:
    Initial Certificate of    Subpart K.................         $133.00
     Documentation.
    Exchange of Certificate   do........................           84.00
     of Documentation.
    Return of vessel to       do........................           84.00
     documentation.
    Replacement of lost or    do........................           50.00
     mutilated Certificate
     of Documentation.
    Approval of exchange of   do........................           24.00
     Certificate of
     Documentation requiring
     mortgagee consent.
    Trade endorsement(s):
        Coastwise             Subpart B.................           29.00
         endorsement.
        Coastwise Boaters     46 CFR part 68............           29.00
         endorsement.
        Fishery endorsement.  do........................           12.00
        Registry endorsement  do........................            none
        Recreational          do........................            none
         endorsement.
------------------------------------------------------------------------
Note: When multiple trade endorsements are requested on the same
 application, the single highest applicable endorsement fee will be
 charged, resulting in a maximum endorsement fee of $29.00
------------------------------------------------------------------------
    Evidence of deletion      Subpart L.................           15.00
     from documentation.
    Renewal fee.............  do........................           26.00
    Late renewal fee........  do........................        \3\ 5.00
Waivers:
    Original build evidence.  Subpart F.................           15.00
    Bill of sale eligible     Subpart E.................           15.00
     for filing and
     recording.
Miscellaneous applications:
    Wrecked vessel            Subpart J.................          555.00
     determination.
    New vessel determination  Subpart M.................          166.00
    Rebuild determination--   do........................          450.00
     preliminary or final.
Filing and recording:
    Bills of sale and         Subpart P.................        \1\ 8.00
     instruments in nature
     of bills of sale.
    Mortgages and related     Subpart Q.................        \1\ 4.00
     instruments.
    Notice of claim of lien   Subpart R.................        \1\ 8.00
     and related instruments.
Certificate of compliance:
    Certificate of            46 CFR part 68............           55.00
     compliance.
Miscellaneous:
    Abstract of Title.......  Subpart T.................           25.00
    Certificate of ownership  do........................          125.00
        Attachment for each   do........................           10.00
         additional vessel
         with same ownership
         and encumbrance
         data.
    Copy of instrument or     (\2\).....................           (\2\)
     document.
------------------------------------------------------------------------
\1\ Per page.
\2\ Fees will be calculated in accordance with 6 CFR Part 5, Subpart A.
\3\ Late renewal fee is in addition to the $26.00 renewal fee.

    Dated: February 21, 2013.
Paul F. Thomas,
Director of Inspections and Compliance, U.S. Coast Guard.
[FR Doc. 2013-04866 Filed 3-1-13; 8:45 am]
BILLING CODE 9110-04-P


particular
                                                          issuers and
                                                          guarantors
                                                          that would be
                                                          material to
                                                          holders of the
                                                          guaranteed
                                                          security that
                                                          are not
                                                          specifically
                                                          required by
                                                          proposed Rules
                                                          13-01(a)(1)
                                                          through (3).
                              Rules 3-10(i)(11)(i) and
                               (ii), respectively,
                               require disclosure of
                               any financial and
                               narrative information
                               about each guarantor if
                               it would be material for
                               investors to evaluate
                               the sufficiency of the
                               guarantee, and
                               disclosure of sufficient
                               information to make the
                               financial information
                               presented not
                               misleading.
Location and Audit            The exceptions in Rules 3- The note to
 Requirement of Alternative    10(b) through (f)          proposed Rule
 Disclosures and Proposed      require the Alternative    13-01(a) would
 Alternative Disclosure.       Disclosures to be          allow the
                               included in the notes to   parent company
                               the parent company's       to provide the
                               consolidated financial     Proposed
                               statements. Rule 3-        Alternative
                               10(i)(2) requires          Disclosures in
                               Consolidating              a footnote to
                               Information to be          its
                               audited for the same       consolidated
                               periods that the parent    financial
                               company financial          statements or
                               statements are required    alternatively,
                               to be audited.             in MD&A in its
                                                          registration
                                                          statement
                                                          covering the
                                                          offer and sale
                                                          of the subject
                                                          securities and
                                                          any related
                                                          prospectus,
                                                          and in
                                                          Exchange Act
                                                          reports on
                                                          Form 10-K,
                                                          Form 20-F, and
                                                          Form 10-Q
                                                          required to be
                                                          filed during
                                                          the fiscal
                                                          year in which
                                                          the first bona
                                                          fide sale of
                                                          the subject
                                                          securities is
                                                          completed. If
                                                          a parent
                                                          company elects
                                                          to provide the
                                                          disclosures in
                                                          its audited
                                                          financial
                                                          statements,
                                                          the Proposed
                                                          Alternative
                                                          Disclosures
                                                          would be
                                                          required to be
                                                          audited. If
                                                          not otherwise
                                                          included in
                                                          the
                                                          consolidated
                                                          financial
                                                          statements or
                                                          in MD&A, the
                                                          parent company
                                                          would be
                                                          required to
                                                          include the
                                                          Proposed
                                                          Alternative
                                                          Disclosures in
                                                          its prospectus
                                                          immediately
                                                          following
                                                          ``Risk
                                                          Factors,'' if
                                                          any, or
                                                          otherwise,
                                                          immediately
                                                          following
                                                          pricing
                                                          information
                                                          described in
                                                          Item 503(c) of
                                                          Regulation S-
                                                          K. The parent
                                                          company would
                                                          be required to
                                                          provide the
                                                          Proposed
                                                          Alternative
                                                          Disclosures in
                                                          a footnote to
                                                          its
                                                          consolidated
                                                          financial
                                                          statements in
                                                          its annual and
                                                          quarterly
                                                          reports
                                                          beginning with
                                                          its annual
                                                          report filed
                                                          on Form 10-K
                                                          or Form 20-F
                                                          for the fiscal
                                                          year during
                                                          which the
                                                          first bona
                                                          fide sale of
                                                          the subject
                                                          securities is
                                                          completed.
Recently-Acquired Subsidiary  If a parent company        The proposed
 Issuers and Guarantors.       acquires a new             rule would not
                               subsidiary issuer or       include this
                               guarantor, Rule 3-10(g)    requirement.
                               requires the parent        Proposed Rule
                               company to provide one     13-01(a)(5)
                               year of audited pre-       would require
                               acquisition financial      information
                               statements of the newly-   about recently-
                               acquired issuer or         acquired
                               guarantor (and, if         subsidiary
                               applicable, unaudited      issuers and
                               interim financial          guarantors if
                               statements) when the:      it would be
                               Parent company     material to an
                               acquires the new           investment
                               subsidiary during or       decision in
                               subsequent to one of the   the guaranteed
                               periods for which          security.
                               financial statements are
                               presented in a
                               Securities Act
                               registration statement
                               filed in connection with
                               the offer and sale of
                               the debt securities;
                                  subsidiary is
                                  deemed
                                  ``significant'' (Rule
                                  3-10(g)(1)(ii); and
                                  subsidiary is
                                  not reflected in the
                                  audited consolidated
                                  results of the parent
                                  company for at least
                                  nine months of the
                                  most recent fiscal
                                  year (Rule 3-
                                  10(g)(1)).

Exchange Act Reporting and    Subsidiary issuers and     Subsidiary
 Continuous Reporting          guarantors that avail      issuers and
 Obligation.                   themselves of an           guarantors
                               exception that allows      that are
                               for the Alternative        permitted to
                               Disclosures in lieu of     omit their
                               separate financial         financial
                               statements are exempt      statements
                               from Exchange Act          under proposed
                               reporting by Rule 12h-5.   Rule 3-10
                               The parent company,        would continue
                               however, must continue     to be exempt
                               to provide the             from Exchange
                               Alternative Disclosures    Act reporting
                               for as long as the         under Rule 12h-
                               guaranteed securities      5. The
                               are outstanding. This      proposed rule
                               obligation continues       would permit a
                               even if the subsidiary     parent company
                               issuers and guarantors     to cease
                               could have suspended       providing the
                               their reporting            Proposed
                               obligations under          Alternative
                               Exchange Act Rule 12h-3    Disclosures if
                               or Section 15(d) of the    the
                               Exchange Act, had they     corresponding
                               chosen not to avail        subsidiary
                               themselves of a Rule 3-    issuer's or
                               10 exception and           guarantor's
                               reported separately from   Section 15(d)
                               the parent company.        obligation is
                                                          suspended
                                                          automatically
                                                          by operation
                                                          of Section
                                                          15(d)(1) or
                                                          through
                                                          compliance
                                                          with Rule 12h-
                                                          3. As a
                                                          continued
                                                          condition of
                                                          eligibility to
                                                          omit the
                                                          financial
                                                          statements of
                                                          a subsidiary
                                                          issuer or
                                                          guarantor, a
                                                          parent company
                                                          must continue
                                                          providing the
                                                          Proposed
                                                          Alternative
                                                          Disclosures
                                                          for so long as
                                                          the subsidiary
                                                          issuer or
                                                          guarantor has
                                                          a Section
                                                          12(b)
                                                          reporting
                                                          obligation
                                                          with respect
                                                          to the
                                                          guarantee or
                                                          guaranteed
                                                          security.
------------------------------------------------------------------------

                               Summary of existing Rule     Summary of
                                         3-16             proposed rules
------------------------------------------------------------------------
Rule 3-16 Financial           Rule 3-16(a) requires a    Under the
 Statements and Proposed       registrant to provide      proposed
 Disclosures.                  separate annual and        amendments,
                               interim financial          Rule 3-16
                               statements for each        Financial
                               affiliate whose            Statements
                               securities constitute a    would be
                               ``substantial portion''    replaced with
                               of the collateral for      a requirement
                               any class of securities    that a
                               registered or being        registrant
                               registered as if the       provide the
                               affiliate were a           financial and
                               separate registrant.       non-financial
                                                          disclosures
                                                          about the
                                                          affiliate(s)
                                                          and the
                                                          collateral
                                                          arrangement
                                                          specified in
                                                          proposed Rule
                                                          13-02(a).
When Disclosure is Required.  Rule 3-16 Financial        Proposed Rule
                               Statements are required    13-02(a) would
                               when an affiliate's        require the
                               securities constitute a    disclosures
                               ``substantial portion''    specified in
                               of the collateral for      proposed Rule
                               the securities             13-02(a)(1)
                               registered or being        through (4) in
                               registered. An             all cases, to
                               affiliate's securities     the extent
                               shall be deemed to         material to
                               constitute a               holders of the
                               ``substantial portion''    collateralized
                               if the aggregate           security.
                               principal amount, par      Additionally,
                               value, or book value of    proposed Rule
                               the securities as          13-02(a)(5)
                               carried by the             would require
                               registrant, or the         disclosure of
                               market value of such       any
                               securities, whichever is   quantitative
                               the greatest, equals 20    or qualitative
                               percent or more of the     information
                               principal amount of the    that would be
                               secured class of           material to
                               securities (Rule 3-        making an
                               16(b)).                    investment
                                                          decision with
                                                          respect to the
                                                          collateralized
                                                          security.
Financial and Non-Financial   Rule 3-16 Financial        Proposed Rule
 Disclosures.                  Statements are those       13-02(a)(4)
                               that would be required     would require,
                               if the affiliate were a    for each
                               separate registrant.       affiliate
                                                          whose
                                                          securities are
                                                          pledged as
                                                          collateral,
                                                          Summarized
                                                          Financial
                                                          Information,
                                                          as specified
                                                          in Rule 1-
                                                          02(bb) of
                                                          Regulation S-
                                                          X, which would
                                                          include select
                                                          balance sheet
                                                          and income
                                                          statement line
                                                          items.
                                                          Disclosure of
                                                          additional
                                                          line items of
                                                          financial
                                                          information
                                                          beyond what is
                                                          specified in
                                                          proposed Rule
                                                          13-02(a)(4)
                                                          would be
                                                          required by
                                                          proposed Rule
                                                          13-02(a)(5),
                                                          to the extent
                                                          material. If
                                                          the
                                                          disclosures
                                                          required by
                                                          proposed Rule
                                                          13-02(a)(4)
                                                          are omitted
                                                          because they
                                                          are
                                                          immaterial,
                                                          proposed Rule
                                                          13-02(a)(4)
                                                          requires
                                                          disclosure to
                                                          that effect
                                                          and the
                                                          reasons
                                                          therefore.
                              .........................  Proposed Rules
                                                          13-02(a)(1)
                                                          through (3)
                                                          would require
                                                          certain non-
                                                          financial
                                                          disclosures,
                                                          to the extent
                                                          material,
                                                          about the
                                                          securities
                                                          pledged as
                                                          collateral,
                                                          each affiliate
                                                          whose
                                                          securities are
                                                          pledged, the
                                                          terms and
                                                          conditions of
                                                          the collateral
                                                          arrangement,
                                                          and whether a
                                                          trading market
                                                          exists for the
                                                          pledged
                                                          securities.
                                                          Additionally,
                                                          proposed Rule
                                                          13-02(a)(5)
                                                          would require
                                                          disclosure of
                                                          any other
                                                          quantitative
                                                          or qualitative
                                                          information
                                                          that would be
                                                          material to
                                                          making an
                                                          investment
                                                          decision with
                                                          respect to the
                                                          collateralized
                                                          security.
Combined Basis..............  Separate Rule 3-16         Proposed Rule
                               Financial Statements are   13-02(a)(4)
                               required for each          would permit
                               affiliate whose            the Summarized
                               securities constitute a    Financial
                               ``substantial portion''    Information of
                               of the collateral for      each affiliate
                               securities registered or   consolidated
                               being registered.          in the
                                                          registrant's
                                                          consolidated
                                                          financial
                                                          statements to
                                                          be presented
                                                          on a combined
                                                          basis.
                                                          However, if
                                                          information
                                                          provided in
                                                          response to
                                                          disclosures
                                                          specified in
                                                          proposed Rule
                                                          13-02 is
                                                          applicable to
                                                          one or more,
                                                          but not all,
                                                          affiliates,
                                                          proposed Rule
                                                          13-02(a)(4)
                                                          would require,
                                                          to the extent
                                                          it is
                                                          material,
                                                          separate
                                                          disclosure of
                                                          Summarized
                                                          Financial
                                                          Information
                                                          for the
                                                          affiliates to
                                                          which the
                                                          information
                                                          applies.
Periods Presented...........  Rule 3-16 Financial        Proposed Rule
                               Statements are required    13-02(a)(4)
                               for the same annual and    would require
                               interim periods as if      disclosure as
                               the affiliate were a       of and for the
                               separate registrant. As    most recently
                               such, the financial        ended fiscal
                               statements are required    year and
                               to be provided for the     interim period
                               periods required by        included in
                               Rules 3-01 and 3-02 of     the
                               Regulation S-X. However,   registrant's
                               Rule 3-16 Financial        consolidated
                               Statements are not         financial
                               required in quarterly      statements.
                               reports, such as Form 10-  Disclosure
                               Q.                         would be
                                                          required in
                                                          quarterly
                                                          reports, such
                                                          as Form 10-Q
                                                          (proposed Rule
                                                          10-01(b)(10)).
Location and Audit            Rule 3-16 Financial        The note to
 Requirement of the            Statements are required    proposed Rule
 Disclosure.                   to be audited for the      13-02(a) would
                               periods required by        allow the
                               Rules 3-01 and 3-02 of     registrant to
                               Regulation S-X.            provide the
                                                          disclosures
                                                          required by
                                                          this section
                                                          in a footnote
                                                          to its
                                                          consolidated
                                                          financial
                                                          statements or
                                                          alternatively,
                                                          in MD&A in its
                                                          registration
                                                          statement
                                                          covering the
                                                          offer and sale
                                                          of the subject
                                                          securities and
                                                          any related
                                                          prospectus,
                                                          and in
                                                          Exchange Act
                                                          reports on
                                                          Form 10-K,
                                                          Form 20-F, and
                                                          Form 10-Q
                                                          required to be
                                                          filed during
                                                          the fiscal
                                                          year in which
                                                          the first bona
                                                          fide sale of
                                                          the subject
                                                          securities is
                                                          completed. If
                                                          a registrant
                                                          elects to
                                                          provide the
                                                          disclosures in
                                                          its audited
                                                          financial
                                                          statements,
                                                          the proposed
                                                          disclosures
                                                          would be
                                                          required to be
                                                          audited. If
                                                          not otherwise
                                                          included in
                                                          the
                                                          consolidated
                                                          financial
                                                          statements or
                                                          in MD&A, the
                                                          registrant
                                                          would be
                                                          required to
                                                          include the
                                                          disclosures in
                                                          its prospectus
                                                          immediately
                                                          following
                                                          ``Risk
                                                          Factors,'' if
                                                          any, or
                                                          otherwise,
                                                          immediately
                                                          following
                                                          pricing
                                                          information
                                                          described in
                                                          Item 503(c) of
                                                          Regulation S-
                                                          K. The
                                                          registrant
                                                          would be
                                                          required to
                                                          provide the
                                                          disclosures in
                                                          a footnote to
                                                          its
                                                          consolidated
                                                          financial
                                                          statements in
                                                          its annual and
                                                          quarterly
                                                          reports
                                                          beginning with
                                                          its annual
                                                          report filed
                                                          on Form 10-K
                                                          or Form 20-F
                                                          for the fiscal
                                                          year during
                                                          which the
                                                          first bona
                                                          fide sale of
                                                          the subject
                                                          securities is
                                                          completed.
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[FR Doc. 2018-19456 Filed 10-1-18; 8:45 am]
 BILLING CODE 8011-01-P