[Federal Register Volume 82, Number 239 (Thursday, December 14, 2017)]
[Rules and Regulations]
[Pages 58731-58739]
[FR Doc No: 2017-26922]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

17 CFR Parts 232, 239, 249, 270, and 274

[Release Nos. 33-10442; 34-82241; IC-32936; File No. S7-08-15]
RIN 3235-AL42

Investment Company Reporting Modernization

AGENCY: Securities and Exchange Commission.

ACTION: Temporary final rule.

-----------------------------------------------------------------------

SUMMARY: The Securities and Exchange Commission (the ``Commission'') is
adopting a temporary final rule that requires funds in larger fund
groups to maintain in their records the information that is required to
be included in Form N-PORT, in lieu of filing reports with the
Commission, until April 2019. As a result, larger funds groups will be
required to begin submitting reports on Form N-PORT on the Electronic
Data Gathering, Analysis, and Retrieval (``EDGAR'') system by April 30,
2019, and smaller fund groups will be required to begin submitting
reports on Form N-PORT by April 30, 2020. The information that funds in
larger fund groups maintain in their records will be subject to
examination by the Commission. In addition, the Commission is delaying
the rescission of current Form N-Q and delaying the effectiveness of
certain amendments to other rules and forms.

DATES: Effective January 16, 2018 until March 31, 2026. The effective
date for the amendments to 17 CFR 232.401, 249.332, 270.8b-33, 270.30a-
2,

270.30a-3, 270.30b1-5, and 17 274.130 and in Instructions 54, 57, 59,
and 61 in the final rule published at 81 FR 81870 on November 18, 2016,
is delayed until May 1, 2020. The applicable compliance dates are
discussed below.

FOR FURTHER INFORMATION CONTACT: J. Matthew DeLesDernier, Senior
Counsel, Jacob D. Krawitz, Branch Chief, or Brian McLaughlin Johnson,
Assistant Director, at<PHONE_NUMBER>, Investment Company Rulemaking
Office, Division of Investment Management, Securities and Exchange
Commission, 100 F Street NE, Washington, DC 20549.

SUPPLEMENTARY INFORMATION: The Commission is adopting new temporary
rule 30b1-9(T) [17 CFR 270.30b1-9(T)] under the Investment Company Act
of 1940 [15 U.S.C. 80a-1 et seq.] (``Investment Company Act''). The
Commission is also delaying the compliance dates associated with the
requirement for smaller fund complexes to file reports on new Form N-
PORT [referenced in 17 CFR 274.150] under the Investment Company Act
[15 U.S.C. 80a-1 et seq.] and new rule 30b1-9 [17 CFR 270.30b1-9] under
the Investment Company Act. In addition, the Commission is delaying the
effective date associated with: the rescission of rule 30b1-5 [17 CFR
270.30b1-5] under the Investment Company Act; amendments to rules 8b-33
[17 CFR 270.8b-33], 30a-2 [17 CFR 270.30a-2], 30a-3 [17 CFR 270.30a-3],
and 30d-1 [17 CFR 270.30d-1] under the Investment Company Act;
amendments to Forms N-1A [referenced in 17 CFR 274.11A], N-2
[referenced in 274.11a-1], and N-3 [referenced in 274.11b] under the
Investment Company Act and the Securities Act of 1933 [15 U.S.C. 77a et
seq.] (``Securities Act''); the rescission of Form N-Q [referenced in
17 CFR 274.130] under the Investment Company Act and Securities
Exchange Act of 1934 [15 U.S.C. 78a et seq.] (``Exchange Act''); and
amendments to rule 401 [17 CFR 232.401] of Regulation S-T [17 CFR 232].

I. Discussion

    In recognition of the importance of sound data security practices
and protocols for sensitive, nonpublic information, the Commission is
modifying its approach to the requirement to submit reports on Form N-
PORT on the EDGAR system. Funds in larger fund groups would have been
required to submit reports on Form N-PORT in EDGAR no later than July
30, 2018. The Commission is adopting a temporary final rule that
requires funds in larger fund groups to maintain in their records the
information that is required to be included in Form N-PORT beginning no
later than July 30, 2018. This information will be subject to
examination by Commission staff. As a result, funds in larger fund
groups must begin to submit reports on Form N-PORT on EDGAR by April
30, 2019, and smaller fund groups must begin to submit reports on Form
N-PORT by April 30, 2020. In addition, the Commission is delaying the
rescission of current Form N-Q and delaying the effectiveness of
certain amendments to other rules and forms.

A. Form N-PORT

    On October 13, 2016, the Commission adopted new rules and forms as
well as amendments to its rules and forms to modernize the reporting
and disclosure of information by registered investment companies.\1\ In
particular, the Commission adopted new Form N-PORT, which requires
certain registered investment companies to report information about
their monthly portfolio holdings to the Commission in a structured data
format. We also adopted new Form N-CEN, which requires registered
investment companies, other than face-amount certificate companies, to
annually report certain census-type information to the Commission in a
structured data format. In addition, we rescinded current Forms N-Q
(effective August 1, 2019) and N-SAR and amended certain other rules
and forms.\2\
---------------------------------------------------------------------------

    \1\ Investment Company Reporting Modernization, Investment
Company Act Release No. 32314 (Oct. 13, 2016) [81 FR 81870 (Nov. 18,
2016)] (``Adopting Release'').
    \2\ The Commission also adopted amendments to Regulation S-X,
which require standardized, enhanced disclosure about derivatives in
investment company financial statements, as well as other
amendments. Finally, it adopted amendments to Forms N-1A, N-3, and
N-CSR to require certain disclosures regarding securities lending
activities. Id.
---------------------------------------------------------------------------

    As the Commission stated in the Adopting Release, Form N-PORT, as
well as new rules, other forms, and amendments to existing rules and
forms will, among other things, improve the information that the
Commission receives from investment companies and assist the
Commission, in its role as primary regulator of investment companies,
to better fulfill its mission of protecting investors; maintaining
fair, orderly, and efficient markets; and facilitating capital
formation. Investors and other potential users can also utilize this
information to help them make more informed investment decisions.
    Form N-PORT is a new portfolio holdings reporting form that will be
filed by all registered management investment companies, other than
money market funds and small business investment companies, and by unit
investment trusts that operate as exchange-traded funds (collectively,
``funds'').\3\ Form N-PORT requires reporting of a fund's complete
portfolio holdings and additional information that will facilitate risk
analysis and other Commission oversight. Reports on Form N-PORT are
required to be filed in an extensible markup language (``XML'')
structured data format no later than 30 days after the close of each
month using the Commission's EDGAR system.\4\ In general, reports on
Form N-PORT for every third month of each fiscal quarter will be
available to the public 60 days after the end of the fiscal quarter.\5\
---------------------------------------------------------------------------

    \3\ Form N-PORT.
    \4\ See rule 30b1-9.
    \5\ General Instruction F to Form N-PORT.
---------------------------------------------------------------------------

    Certain information reported on Form N-PORT will be kept nonpublic.
As we noted in the Adopting Release, we recognize that more frequent
portfolio disclosure than was currently required could potentially harm
fund shareholders by expanding the opportunities for professional
traders to engage in predatory trading practices.\6\ In addition, some
of the information required by Form N-PORT could imply a false sense of
precision because such data, by design, are an aggregation of multiple
assumptions and projections.\7\ In light of these considerations, the
Commission in the Adopting Release determined not to make public the
information reported on Form N-PORT for the first and second months of
each fund's fiscal quarter that is identifiable to any particular fund
or adviser; any information reported with regards to country of risk
and economic exposure, delta, or miscellaneous securities; or
explanatory notes related to any of those topics that is identifiable
to any particular fund or adviser.\8\ In addition, the information on
Form N-PORT that will be made public will only be made public after an
additional 30-day delay (i.e., 60 days after quarter-end). Moreover, we
determined to make all reports for the first six months following June
1, 2018 nonpublic in order to allow funds and the Commission a period
of time to fine-tune the technical specifications and data validation
processes for reports on Form N-PORT.\9\
---------------------------------------------------------------------------

    \6\ See Adopting Release, supra note 1, Part II.A.4.
    \7\ See id.
    \8\ General Instruction F to Form N-PORT.
    \9\ See Adopting Release, supra note 1, Part II.H.1.
---------------------------------------------------------------------------

    When we adopted the Form N-PORT filing requirement, we provided for
an effective date of January 17, 2017, with a tiered set of compliance
dates based

on a fund group's asset size. Specifically, for larger entities--funds
that together with other investment companies in the same ``group of
related investment companies'' have net assets of $1 billion or more as
of the end of the most recent fiscal year of the fund (``larger fund
groups'')--we adopted a compliance date of June 1, 2018.\10\ This would
have resulted in larger fund groups filing their first reports on Form
N-PORT, reflecting data as of June 30, no later than July 30, 2018.\11\
For smaller fund groups, we adopted a compliance date of June 1, 2019,
anticipating that smaller fund groups would benefit from this extra
time to comply and potentially would benefit from the lessons learned
by the larger fund groups during the adoption period for Form N-
PORT.\12\
---------------------------------------------------------------------------

    \10\ Id.
    \11\ Id.
    \12\ Id.
---------------------------------------------------------------------------

B. Commission's Determination To Delay Form N-PORT Filing Requirement

    As we noted in the Adopting Release, we recognize the importance of
sound data security practices and protocols for sensitive, nonpublic
information, including information that may be competitively
sensitive.\13\ To that end, the Adopting Release acknowledged that
Commission staff was working to design controls and systems for the use
and handling of Form N-PORT data in a manner that reflects the
sensitivity of the data and is consistent with the maintenance of its
confidentiality.\14\ In the Adopting Release, the Commission also
stated that it ``expect[ed] that the staff will have reviewed the
controls and systems in place for the use and handling of nonpublic
information reported on Form N-PORT.'' \15\
---------------------------------------------------------------------------

    \13\ See Adopting Release, supra note 1, Part II.A.3.
    \14\ Id.
    \15\ Id.
---------------------------------------------------------------------------

    In May 2017, the Commission's Chairman initiated an assessment of
the Commission's internal cybersecurity risk profile and its approach
to cybersecurity.\16\ The Chairman also directed the staff to take a
number of steps designed to strengthen the Commission's cybersecurity
risk profile, with an initial focus on EDGAR.\17\ As the Chairman
explained, the Commission receives, stores, and transmits substantial
amounts of data, including sensitive and nonpublic data, in support of
its mission.\18\ Much of that data is collected through EDGAR, which
receives and processes over 1.7 million electronic filings per
year.\19\ Thus, as part of the Commission's efforts to strengthen its
cybersecurity risk profile going forward, the Commission has initiated
a focused review and, as necessary or appropriate, uplift of the EDGAR
system.\20\ The Commission has added, and expects to continue to add,
additional resources to these efforts, which are expected to include
outside consultants, and will increase the focus on data security
matters.\21\ As the Chairman has indicated, these efforts will require
substantial time and effort to complete.\22\
---------------------------------------------------------------------------

    \16\ Statement on Cybersecurity (September 20, 2017), available
at https://www.sec.gov/news/public-statement/statement-clayton-2017-09-20.
    \17\ Update on Review of 2016 Cyber Intrusion Involving EDGAR
System (Oct. 2, 2017), available at https://www.sec.gov/news/press-release/2017-186.
    \18\ Statement on Cybersecurity (Sept. 20, 2017), available at
https://www.sec.gov/news/public-statement/statement-clayton-2017-09-20.
    \19\ Id.
    \20\ Update on Review of 2016 Cyber Intrusion Involving EDGAR
System (Oct. 2, 2017), available at https://www.sec.gov/news/press-release/2017-186.
    \21\ Id.
    \22\ Id.
---------------------------------------------------------------------------

    Certain of these measures, which will be designed to improve
EDGAR's functionality and security, could negatively affect EDGAR's
ability to validate and accept Form N-PORT filings in a timely manner,
in particular during peak filing periods. Efforts to address any such
potential effects on performance are underway, but we have determined
to delay by nine months the requirement that funds file reports on Form
N-PORT through the EDGAR system in order to provide time to complete
this review and to implement and test any resulting modifications to
the EDGAR system.\23\ This delay of filing reports on Form N-PORT on
EDGAR is necessary for Commission staff to complete and review any
modifications to EDGAR that are necessary to process these filings
effectively and securely, given their frequency, volume, and
complexity, as well as the nonpublic nature of much of the data.
---------------------------------------------------------------------------

    \23\ The Commission has not considered any other changes to Form
N-PORT, rules, other forms, and amendments besides those that are
discussed in this release.
---------------------------------------------------------------------------

C. Temporary Rule 30b1-9(T)

    To effectuate the nine-month delay, we have determined to adopt
temporary rule 30b1-9(T), which will have the effect of delaying the
EDGAR submission requirements associated with Form N-PORT for larger
fund groups until April 2019. As a result, funds in larger fund groups
that previously would have been required to submit their first reports
on Form N-PORT on EDGAR for the period ending June 30, 2018 (no later
than July 30, 2018) will now be required to submit their first reports
on EDGAR by April 30, 2019.\24\ During this period, funds in larger
fund groups that are subject to the June 1, 2018 compliance date must
satisfy their reporting obligation by maintaining in their records the
information required to be included in Form N-PORT instead of
submitting the information via EDGAR.\25\ To provide for Commission
access to this information for a reasonable period of time, consistent
with current record retention requirements for registered investment
companies, the temporary rule provides that the information maintained
in the company's records shall be treated as a record under section 31
of the Investment Company Act and rule 31a-1 hereunder and subject to
the requirements of rule 31a-2.\26\ Like all fund records under the
Act, this information is subject to examination by Commission
staff.\27\ Temporary rule 30b1-9(T) does not change the June 1, 2018
compliance date adopted for Form N-PORT for larger fund groups--it
instead requires a temporary method for larger fund groups to fulfill
their Form N-PORT reporting obligations.\28\
---------------------------------------------------------------------------

    \24\ See Rule 30b1-9(T)(a).
    \25\ Id. Furthermore, the EDGAR reporting requirements added to
Form N-PORT by the Investment Company Liquidity Risk Management
Programs Adopting Release (``Liquidity Adopting Release'') will also
be delayed by the temporary rule. See Investment Company Liquidity
Risk Management Program, Investment Company Act Release No. 32315
(Oct. 13, 2016) [81 FR 82142 (Nov. 18, 2016)]. However, funds will
only be required to comply with temporary rule 30b1-9(T) with
respect to these liquidity-related additions to Form N-PORT based on
the compliance date set forth in the Liquidity Adopting Release for
these additions.
    \26\ See rule 31a-2(a)(2) (providing that funds must preserve
certain records for a period not less than six years from the end of
the fiscal year, the first two years in an easily accessible place);
see generally rule 31a-2(f) (requirements for electronic records).
Because rule 31a-2 provides for preservation for not less than six
years from the end of the fiscal year, the temporary rule will no
longer be effective March 31, 2026.
    \27\ 15 U.S.C. 80a-30(b)(1).
    \28\ See rule 30b1-9(T)(a). While neither this temporary rule
nor rule 31a-2(f) require that the information maintained in the
funds' records be stored in an XML format, we believe that doing so
would facilitate the filing of Form N-PORT following the nine-month
delay as we believe funds can use this delay to gain greater
facility with the structured reporting format.
---------------------------------------------------------------------------

    The Adopting Release delayed compliance for smaller fund groups by
one year so that they could benefit from the lessons learned by the
larger fund groups' earlier compliance date.\29\ In order to maintain
this benefit the compliance date for smaller fund groups

will be delayed by nine months from the original compliance date (until
March 1, 2020). Not providing smaller fund groups with a compliance
date delay would deprive them of receiving the full benefit of the
tiered filing requirement that we previously adopted. However, the
temporary rule is not relevant to these smaller fund groups,\30\ as the
relevant provision of the temporary rule applies until April 1, 2019--
before the new compliance date for smaller fund groups (March 1, 2020).
As a result, smaller fund groups are not subject to a requirement to
prepare and then retain as a record the information required on Form N-
PORT; rather, they will, pursuant to the Adopting Release and this
release, need to prepare and file Form N-PORT beginning on or after the
delayed March 1, 2020 compliance date.
---------------------------------------------------------------------------

    \29\ See Adopting Release, supra note 1, at Part II.H.1.
    \30\ See rule 30b1-9(T)(a).
---------------------------------------------------------------------------

D. Form N-Q Filing Requirement

    In order for investors and other users to continue to receive at
the least the same information that they currently receive regarding
fund portfolio holdings, we are requiring funds to continue filing
public reports on Form N-Q until they begin filing reports on Form N-
PORT using EDGAR (i.e., the March 31, 2019 reporting period for larger
fund groups and March 31, 2020 for smaller fund groups). As the
Commission concluded in the Adopting Release, Form N-PORT will render
reports on Form N-Q unnecessarily duplicative. To that end, the
Commission staff recently provided guidance that once a fund begins
filing reports on Form N-PORT, it will no longer be required to file
reports on Form N-Q.\31\ The Adopting Release rescinded Form N-Q,
effective August 1, 2019. This effective date would have allowed funds
sufficient time to satisfy Form N-Q's 60-day filing requirement with
regard to their final filing on Form N-Q for the reporting period
preceding their first filing on Form N-PORT.\32\ We also adopted
certain changes to Form N-CSR to account for the rescission of Form N-
Q.\33\ Specifically, as we noted in the Adopting Release, when a fund
ceases filing reports on Form N-Q, its certification on Form N-CSR must
state that the certifying officer has disclosed any change in the
registrant's internal control over financial reporting that occurred
during the most recent fiscal half-year, rather than the registrant's
most recent fiscal quarter as currently required.\34\
---------------------------------------------------------------------------

    \31\ See Investment Company Reporting Modernization Frequently
Asked Questions, available at https://www.sec.gov/investment/investment-company-reporting-modernization-faq#_ftnref5.
    \32\ Adopting Release, supra note 1, at 81966.
    \33\ Id. at 81912-13. We also adopted certain technical and
conforming amendments related to the rescission of Form N-Q and the
adoption of Form N-PORT. See id. at 81965-66.
    \34\ See supra note 1, at Part II.B.2; see also Investment
Company Reporting Modernization Frequently Asked Questions,
available at https://www.sec.gov/investment/investment-company-reporting-modernization-faq#_ftnref5.
---------------------------------------------------------------------------

    As a result of this delay of the compliance date for filing reports
on Form N-PORT for smaller fund groups by nine months, smaller fund
groups will now satisfy their final filing requirements for Form N-Q by
May 1, 2020. We are therefore delaying the effective date for the
rescission of Form N- Q until May 1, 2020.\35\ Correspondingly, the
compliance dates for the amendments to the certification requirements
of Form N-CSR will be March 1, 2019, for larger fund groups, and March
1, 2020, for smaller fund groups.\36\
---------------------------------------------------------------------------

    \35\ Money market funds currently file reports on Form N-Q, but
upon its rescission will not have to file reports on Form N-PORT (as
money market funds currently file monthly reports on Form N-MFP).
While the Commission is extending the effective date for the
rescission of Form N-Q until May 1, 2020, money market funds that
were relying on the Commission's original August 1, 2019 rescission
date for Form N-Q do not have to file reports on Form N-Q after
August 1, 2019 despite the new rescission date of May 1, 2020.
    \36\ We are also delaying the effective date for the
corresponding amendments to references to the availability of
portfolio holdings schedules in Form N-1A, N-2, and N-3 and the
amendments to remove references to Form N-Q in rule 401 of
Regulation S-T and rules 8b-33, 30a-2, 30a-3, and 30d-1 under the
Investment Company Act, to May 1, 2020, the same day the rescission
of Form N-Q will now be effective.
---------------------------------------------------------------------------

E. Six-Month Nonpublic Reporting Period

    In the Adopting Release, the Commission determined that having a
six-month time period where larger fund groups are required to file
reports on Form N-PORT with the Commission, but where those reports are
not disclosed publicly, will allow funds and the Commission to make
adjustments to fine-tune the technical specifications and data
validation processes.\37\ Because larger fund groups will now be
required to submit the reports on EDGAR as of March 31, 2019, those
reports for the periods ending March 31, 2019 through September 30,
2019 will be kept nonpublic to preserve the six-month period noted
above.\38\ As before, portfolio information attached as exhibits to
Form N-PORT for the first and third quarters of a fund's fiscal year
will still be made public during this period, to ensure that
information about funds' portfolio holdings continues to be publicly
available to investors and other users during the six-month period when
reports on Form N-PORT will not be made publicly available.\39\
---------------------------------------------------------------------------

    \37\ See Adopting Release, supra note 1, Part II.H.1.
    \38\ As in the Adopting Release, here, smaller fund groups will
not be required to file reports on Form N-PORT through the EDGAR
system until after the six-month nonpublic period for larger fund
groups has elapsed. This will allow smaller fund groups to benefit
from any adjustments to fine-tune the technical specifications and
data validation processes that occurred during the six-month
nonpublic period for larger fund groups.
    \39\ See Adopting Release, supra note 1, Part II.H.1.
---------------------------------------------------------------------------

F. Form N-CEN

    We note that our action today does not affect requirements with
respect to Form N-CEN.\40\ Because those reports will be immediately
made public upon filing and because their annual frequency of filing
and their smaller size are expected to impose fewer demands on the
EDGAR system, we have determined not to change the submission
requirements with respect to that form at this time.
---------------------------------------------------------------------------

    \40\ Form N-CEN [referenced in 17 CFR 274.101] under the
Investment Company Act. Accordingly, the rescission of Form N-SAR
will not be delayed by this action.
---------------------------------------------------------------------------

G. Procedural and Other Matters

    The Administrative Procedure Act (``APA'') generally requires an
agency to publish notice of a rulemaking in the Federal Register and
provide an opportunity for public comment.\41\ This requirement does
not apply, however, if the agency ``for good cause finds . . . that
notice and public procedure thereon are impracticable, unnecessary, or
contrary to the public interest.'' \42\ We have determined to
immediately adopt this temporary rule delaying the requirement that
funds file reports on Form N-PORT through the EDGAR system for nine
months and making the accompanying changes described above. The
Commission has determined that the range of potential technological
matters accompanying the ongoing and anticipated improvements to the
EDGAR system warrant a delay in accepting this entirely new set of
EDGAR filings, which involve complex structured data files, until after
the EDGAR upgrades that are underway are tested. This judgment is based
on the Commission's ongoing, internal assessment of the range of
potential modifications to enhance the EDGAR system's functionality,
performance, and security. Accordingly, we have concluded that
soliciting public comment on this issue would be neither necessary,
practicable, nor in the public interest.
---------------------------------------------------------------------------

    \41\ See 5 U.S.C. 553(b)-(c).
    \42\ 5 U.S.C. 553(b)(3)(B).
---------------------------------------------------------------------------

    In addition, providing immediate certainty to funds is critical
because we

understand that funds are currently organizing their systems and
procedures to comply with the requirements and dates set forth in the
Adopting Release. Funds need to know that there will be a nine-month
delay of the requirement that they file reports on Form N-PORT through
the EDGAR system, and that as a result they will have to maintain their
systems for filing reports on Form N-Q longer than contemplated in the
Adopting Release. The Commission is concerned, for example, that absent
the certainty provided by a final rule funds may eliminate those
systems as part of the transition to Form N-PORT. Providing notice and
comment would defeat this goal of giving certainty as to funds'
obligations in light of the necessary delays stemming from the
Commission's recent cybersecurity initiatives. Under these
circumstances, notice and comment would be both impracticable and
contrary to the public interest.
    For these reasons, the Commission finds that good cause exists to
dispense with notice and comment regarding the delay of the requirement
to submit reports on Form N-PORT on EDGAR and the associated changes
outlined above.\43\
---------------------------------------------------------------------------

    \43\ See Section 553(b)(3)(B) of the Administrative Procedure
Act (5 U.S.C. 553(b)(3)(B)) (an agency may dispense with prior
notice and comment when it finds, for good cause, that notice and
comment are ``impracticable, unnecessary, or contrary to the public
interest''). This finding also satisfies the requirements of 5
U.S.C. 808(2), allowing the amendments to become effective
notwithstanding the requirement of 5 U.S.C. 801 (if a federal agency
finds that notice and public comment are impractical, unnecessary or
contrary to the public interest, a rule shall take effect at such
time as the federal agency promulgating the rule determines). The
amendments also do not require analysis under the Regulatory
Flexibility Act. See 5 U.S.C. 604(a).
---------------------------------------------------------------------------

II. Economic Analysis

A. Introduction

    The Commission is sensitive to the economic effects, including the
benefits and costs and the effects on efficiency, competition, and
capital formation that will result from this temporary final rule and
from the nine-month delay of the requirement that funds submit reports
on Form N-PORT through EDGAR, the associated delay for the same period
of the rescission of Form N-Q, the delay of the semi-annual
certification requirement in Form N-CSR, the delay of the effectiveness
of certain amendments to other rules and forms, and the change in the
six-month period during which filed reports on Form N-PORT with the
Commission will be kept nonpublic.\44\
---------------------------------------------------------------------------

    \44\ See Parts I.C, I.D, and I.E for the specific framework of
the nine-month delay in the submission of Form N-PORT on EDGAR.
---------------------------------------------------------------------------

    The Commission relies on information included in reports filed by
funds to monitor trends, identify risks, and inform its regulatory
functions. Similarly, investors and other market participants rely on
funds' public filings to assist in their investment decisions and
understanding of financial markets. Form N-PORT, which requires
reporting of a fund's complete portfolio holdings on a monthly basis
with every third month available to the public, will contribute
substantially to information made available to the Commission and the
public by funds. As the Commission has previously stated,\45\ the
adoption of Form N-PORT will modernize fund reporting, improve the
ability of the Commission to fulfill its regulatory functions, and
allow investors to make more informed investment decisions.
---------------------------------------------------------------------------

    \45\ See Adopting Release, supra note 1, at 81870, 81872.
---------------------------------------------------------------------------

    The Commission has now determined to delay the requirement that
funds submit Form N-PORT through the EDGAR system by nine months to
provide time to complete the necessary adjustments to the technical
specifications and data validation processes and to complete the
necessary functionality, performance, and security enhancements. The
Commission's implementation of this delay, while facilitating changes
to the EDGAR system, will impose certain costs on market participants,
including costs associated with delayed access to structured portfolio
holdings data, costs associated with continuing to file Form N-Q, and
recordkeeping costs associated with Form N-PORT for larger fund groups.
The economic effects of the delay are discussed in more detail below.

B. Economic Baseline

    The current required reporting of information by funds (e.g.,
reports on Forms N-Q, N-CSR, and N-SAR), as well as the changes in
reporting and disclosure brought by the adoption of Form N-PORT, serve
as the baseline against which the costs and benefits as well as the
impact on efficiency, competition, and capital formation are
discussed.\46\ Additionally, the baseline takes into account the fact
that some funds likely have started updating their systems and
processes to comply with the new Form N-PORT requirements adopted in
October 2016.
---------------------------------------------------------------------------

    \46\ See Adopting Release, supra note 1, at 81969.
---------------------------------------------------------------------------

    The entities affected by the delay of the EDGAR submission
requirement for reports on Form N-PORT are generally the funds that
will report using Form N-PORT; those entities that currently report
using Form N-Q and would have ceased doing so as of the applicable Form
N-PORT compliance date; and those entities that will rely on either
filed information, including the Commission and current and future
users of investment company portfolio information including investors,
third-party information providers, and other interested potential
users.
    As of the end of 2016, approximately 95.8 million individuals owned
shares of registered investment companies, representing 55.9 million or
44.4% of U.S. households.\47\ We estimate that, as of the end of 2016,
there were 17,072 funds registered with the Commission, of which 11,548
are required to file Form N-PORT (i.e., 9,090 mutual funds (excluding
money market funds), 1,716 ETFs (including eight ETFs organized as UITs
and 1,708 ETFs that are management investment companies), and 742
closed-end funds (excluding SBICs)).\48\ Of the fund groups required to
file Form N-PORT, 68.9% of fund groups, representing 0.6% of all fund
assets, have net assets below $1 billion. We also estimate that there
are 11,540 funds that currently report on Form N-Q and will be required
to report on Form N-PORT,\49\ all of which would have ceased reporting
on Form N-Q as of the applicable Form N-PORT compliance date(s).\50\
---------------------------------------------------------------------------

    \47\ 2017 Investment Company FactBook (``2017 IC FactBook''), A
Review of Trends and Activities in the Investment Company Industry,
57th edition, at 2, available at https://www.ici.org/pdf/2017_factbook.pdf.
    \48\ Based on data obtained from the 2017 IC FactBook and
registrants' filings with the Commission on Form N-SAR as of the end
of 2016.
    \49\ 11,540 is equal to 11,548 funds that are required to file
Form N-PORT minus 8 ETFs organized as UITs that are required to file
Form N-PORT but are not required to file form N-Q. Estimates are
based on staff analysis of data obtained from Morningstar Direct, as
of December 31, 2016.
    \50\ Based on data obtained from the 2017 IC FactBook and
registrants' filings with the Commission on Form N-SAR as of the end
of 2016.
---------------------------------------------------------------------------

C. Economic Impacts

    We are mindful of the costs and benefits of the delay in filings on
Form N-PORT, the new recordkeeping requirement, and the associated
delays in the effectiveness of certain amendments and rescissions. The
Commission notes that, where possible, it has sought to quantify the
benefits and costs, and effects on efficiency, competition, and capital
formation expected to result from the delay in the date for submitting
Form N-PORT on EDGAR, the related delay in the rescission of Form N-Q,
and the other changes made in this release. However, the Commission is
unable to quantify

many of the economic effects because it lacks information necessary to
provide reasonable estimates. Effects that we are unable to quantify
include the extent to which investors would be able to use the
information in Form N-PORT to make more informed investment decisions
either through direct use or through third-party service providers.
1. Economic Impacts of Delay in Form N-PORT EDGAR Submission
Requirement
    The EDGAR submission requirement was designed to enhance the
Commission's ability to access efficiently and timely monthly
investment portfolio information of a large number of funds in a
structured format, and to also enhance investors' ability to make more
informed investment decisions. The delay in the requirement to submit
Form N-PORT on EDGAR will benefit reporting funds as well as funds'
current and prospective investors, because it will allow the Commission
time to make progress in the EDGAR system review and to implement and
test resulting modifications to the EDGAR system.\51\ This will allow
the large amounts of new, complex data to be submitted on EDGAR with
additional security measures in place. This, in turn, will help ensure
that the information contained in Form N-PORT, once submitted to EDGAR,
is readily accessible and usable.
---------------------------------------------------------------------------

    \51\ To the extent that the Commission's EDGAR review and
modernization efforts during the nine-month delay improve current
data security for nonpublic information posted on EDGAR, funds will
also benefit from efforts to strengthen the Commission's
cybersecurity risk profile going forward.
---------------------------------------------------------------------------

    The Commission acknowledges, however, that there are costs to a
delay in the receipt of Form N-PORT information. The delay in the EDGAR
submission requirement could potentially temporarily affect the
Commission's ability to readily incorporate Form N-PORT information
into its mission through better informed policy decisions and
oversight, more specific guidance and comments in the disclosure review
process, and more targeted examination and enforcement efforts.\52\
This impact is likely mitigated, however, because during the nine-month
delay in the EDGAR submission requirement, larger fund groups must
still prepare and maintain in their records the information that is
required to be included on Form N-PORT.\53\ Further, both smaller fund
groups and larger fund groups must also prepare and submit reports on
Form N-Q. There is overlap between the information that funds will
continue to report on Form N-Q and that required in Form N-PORT;
however, funds file Form N-Q in a non-structured data format, file the
form less frequently, and report fewer data points than on Form N-
PORT.\54\
---------------------------------------------------------------------------

    \52\ To the extent that larger fund groups do not prepare and
maintain their reports in XML format during the delay period, the
nine-month delay in the EDGAR submission requirement could also
temporarily negatively affect the Commission because fund reports
will not be available in a structured XML format that allows the
Commission staff to more efficiently review and analyze fund
portfolio information. See Adopting Release, supra note 1, at 81876,
81906-7.
    \53\ See supra Part I.C.
    \54\ As detailed in the Adopting Release, Form N-PORT requires
additional information concerning fund portfolio holdings that is
not currently required by Form N-Q. See Adopting Release, supra note
1, at 81875-76. For example, Form N-PORT requires reporting of
additional information relating to derivative investments. The form
also includes certain risk metric calculations that measure a fund's
exposure and sensitivity to changing market conditions, such as
changes in asset prices, interest rates, or credit spreads. Form N-
PORT also requires information about certain fund transactions and
activities such as securities lending, repurchase agreements, and
reverse repurchase agreements, including information regarding the
counterparties to which the fund is exposed in those transactions,
as well as in over-the-counter derivatives transactions.
---------------------------------------------------------------------------

    The nine-month delay of the EDGAR submission requirement will also
delay the ability of current and future users of investment company
portfolio information, including investors, third-party information
providers, and academics, to access additional publicly available data
in a structured format. This delay in the Form N-PORT submission will
defer the increase in the transparency of a fund's investment
strategies and will also postpone the increase in the ability of
investors and other potential users to more efficiently identify the
funds' risk exposures, differentiate investment companies based on
their investment strategies, and make more informed investment
decisions. Any costs of such a temporary delay are partially mitigated
by the fact that users of investment company portfolio information will
continue to have access to relevant investment company information via
the reports on Form N-Q and N-CSR for the duration of the Form N-PORT
submission delay.
    To the extent that the delay in the requirement to submit Form N-
PORT on EDGAR for larger fund groups and the delay in the requirement
to file Form N-PORT for smaller fund groups change costs borne by fund
groups, these changes will come in the form of a reduction in the cost
of submitting reports on Form N-PORT on EDGAR. For larger fund groups,
there will be a cost saving associated with the nine-month delay in the
requirement to prepare the funds' systems to accommodate the XML-based
reports to the extent those fund groups choose another format to
prepare and maintain the information that is required to be included in
Form N-PORT during the delay period.\55\ For smaller fund groups, there
will be a cost saving associated with the nine-month delay in both
preparing and submitting reports on Form N-PORT on EDGAR.
---------------------------------------------------------------------------

    \55\ This cost saving comprises a deferral of initial costs
because larger fund groups must prepare their systems to accommodate
the XML-based reports with a nine-month delay and a reduction in
ongoing costs because larger fund groups have to accommodate the
XML-based reports for nine months less. It is possible that certain
funds have already started preparing their systems and processes to
accommodate the Form N-PORT requirements adopted in October 2016.
Any cost reductions and deferrals for those funds are likely lower.
---------------------------------------------------------------------------

    Based on the cost estimates in the Adopting Release for compiling
and submitting Form N-PORT on EDGAR, we believe that the cost savings
for larger fund groups associated with the delay in submitting Form N-
PORT on EDGAR and the delay in preparing the funds' systems to
accommodate the XML Form N-PORT format requirement will be minimal.
While filing with the Commission is delayed for nine months, temporary
rule 30b1-9(T) will still require larger fund groups to compile the
information that is required to be included in Form N-PORT during the
nine months that the EDGAR submission requirement is delayed and these
funds will incur the additional cost of maintaining the information
required by Form N-PORT in the funds' records in an easily accessible
place as required by the temporary final rule. We believe that the cost
savings for smaller fund groups associated with the delay in preparing
and submitting Form N-PORT on EDGAR for nine months will be likely
higher compared to the cost savings for larger fund groups. These cost
savings likely comprise a nine-month deferral of initial costs
associated with preparing the necessary systems and processes for Form
N-PORT filings and a reduction in ongoing costs associated with
preparing, reviewing, and filing reports on Form N-PORT for nine
months.\56\ Finally, for both larger and smaller funds groups, the
proposed delay will temporarily defer costs associated with the public
release of information that was previously held private.\57\
---------------------------------------------------------------------------

    \56\ See Adopting Release supra note 1, footnotes 1300-1304 for
details on the initial and ongoing costs associated with preparing,
reviewing, and filing reports on Form N-PORT.
    \57\ Such costs include potential ``front-running,'' ``predatory
trading,'' and ``copycatting/reverse engineering of trading
strategies'' by other investors as well as the public release of
previously private and sensitive information, such as the identities
and weights of all of the individual components in custom baskets or
indexes comprising the reference instruments underlying the fund's
derivative investments, information regarding fees and financing
terms for certain derivatives contracts, information regarding the
variable financing rates for swaps that pay or receive financing
payments, and the reporting of distressed debt issued by private
companies. See Adopting Release, supra note 1, at 81977-80.

---------------------------------------------------------------------------

2. Economic Impacts of Delay in Form N-Q Rescission
    The nine-month delay in the Form N-PORT submission on EDGAR likely
imposes additional costs to funds required to file reports on Form N-Q
for an additional nine months. First, the requirement to submit Form N-
Q for an additional nine months as well as prepare and maintain the
information that is required to be included in a larger fund group's
report on Form N-PORT will impose filing costs for Form N-Q and some
duplicative preparation and recordkeeping costs on larger fund groups
that will be required to prepare and maintain information that is
included in both forms. Using estimates from the Adopting Release, we
calculate that preparing and filing Form N-Q imposes annual total cost
of $78,518,160 for all funds, or $6,804 per fund annually.\58\ However,
because substantially all of Form N-Q questions have been incorporated
into Form N-PORT, we estimate that much of the estimated burden
encompasses the cost of gathering and preparing relevant data as well
as developing or maintaining the systems and records to generate the
data that will be required by both forms. As a result, the additional
costs of preparing and filing Form N-Q during the nine-month delay will
likely be administrative in nature, and small in relation to the costs
that funds already bear for preparing and reviewing Form N-PORT.\59\
---------------------------------------------------------------------------

    \58\ The estimated annual cost per-fund is based upon the
following calculations: $6,804 = 21 hours/fund x $324/hour
compensation for professionals commonly used in preparation of Form
N-Q filings. ($324 = ($308 per hour for senior programmers + $340
per hour for compliance attorneys) / 2 (as half of the time will be
performed by senior programmers and half by compliance attorneys)),
as we believe these employees would commonly be responsible for
completing reports on Form N-Q. The estimated annual total cost is
based on the following calculation: $78,518,160 = $6,804 annual per
fund cost x 11,540 funds. Funds are currently required to file a
quarterly report on Form N-Q after the close of the first and third
quarters of each fiscal year. See Adopting Release, supra note 1, at
81998.
    \59\ See Adopting Release, supra note 1, at page 81975.
---------------------------------------------------------------------------

    Second, the delay in the Form N-PORT submission requirement will
impose an additional cost on funds that must continue seeking
certification of the Form N-Q for nine more months until Form N-Q is
rescinded.\60\ As mentioned above, once Form N-Q is rescinded, the
certifying officer will be required to state that he or she has
disclosed in Form N-CSR any change in the registrant's internal control
over financial reporting that occurred during the most recent fiscal
half-year rather than the most recent quarter to fill the gap in
certification coverage that would otherwise occur once Form N-Q is
rescinded. Nevertheless, we believe any additional certification costs
arising from the delay in the Form N-Q rescission will be minimal.\61\
---------------------------------------------------------------------------

    \60\ On the other hand, the proposed delay in the Form N-Q
rescission will also temporarily defer for some funds any costs
associated with the rescission of Form N-Q, depending on a
particular fund's fiscal year. In particular, the rescission of Form
N-Q will eliminate certifications of the accuracy of the portfolio
schedules reported for the first and third fiscal quarters and funds
will only certify their disclosure controls and procedures and
internal control over financial reporting in Form N-CSR semi-
annually. To the extent that Form N-Q's certifications about the
accuracy of portfolio holdings improve the accuracy of the data
reported during the first and third quarters, reducing the frequency
of certifications from quarterly to semiannually could affect the
quality of the data reported. The delay in the rescission of Form N-
Q could thus delay the potential cost of reduced data quality due to
the reduction in the data certification frequency.
    \61\ See Adopting Release, supra note 1, at 81975, 82005.
---------------------------------------------------------------------------

3. Analysis of Effects on Efficiency, Competition, and Capital
Formation
    Market participants rely on the ability of EDGAR to perform
effectively in order to provide the Commission and investors with
timely reporting. The Commission prioritizes a secure and fully
functional EDGAR for receiving information about its registrants and
providing that information to market participants. The delay in the
Form N-PORT submission requirement and the resulting delay in the Form
N-Q rescission will provide the Commission with time to make progress
in the EDGAR system review and to implement and test resulting
modifications to the EDGAR system to allow EDGAR to accept new, large,
and complex structured data disclosures made by funds effectively, with
additional security measures in place, thereby facilitating the ready
accessibility of the disclosures by investors and other market
participants.
    The Commission acknowledges, however, that the delay will
temporarily prevent the Commission, investors, and other market
participants from accessing the more comprehensive and structured
portfolio information that would be made available by funds filing Form
N-PORT. The enhanced disclosures in Form N-PORT would allow the
Commission to better monitor industry trends and identify industry
outliers, provide guidance and comments to improve disclosure, identify
risks, inform policy and rulemaking, and assist the Commission in its
oversight efforts. The enhanced disclosures in Form N-PORT would also
allow investors and other market participants to more efficiently
analyze investment portfolio information, better differentiate
investment companies based on their investment strategies and other
activities, select funds based on security selection, industry focus,
level of diversification, and the use of leverage and derivatives. The
enhanced disclosures therefore would ultimately allow investors to
allocate capital across reporting funds more in line with their risk
preferences and increase the competition among funds for investor
capital. Hence, the delay in the Form N-PORT submission requirement
might temporarily negatively impact investors; the fair, orderly, and
efficient functioning of the markets; and capital formation.
Importantly, however, this temporary negative impact is mitigated by
delaying the rescission of Form N-Q until May 1, 2020 so that funds
will continue to provide some fund portfolio holdings information on
Form N-Q.
    The delay may have an incremental competitive effect on larger fund
groups, which remain subject to the requirement to prepare the
information required by Form N-PORT and Form N-Q, but to retain the
former and submit the latter, for an additional nine months, while
smaller fund groups are not subject to the costs of preparing and
retaining the information required by Form N-PORT. These effects are
likely small, given the relative size of the larger fund groups to the
smaller fund groups and will only last for nine months.
D. Alternatives
    As an alternative to the nine-month delay of the EDGAR submission
requirement for reports on Form N-PORT, we considered a longer or
shorter delay period. While a shorter period would have reduced the
costs to the Commission and other current and future users of
investment company portfolio information of not receiving investment
portfolio information in a more timely manner, the Commission believes
that a shorter period would be inadequate for review and testing of the
EDGAR system's ability to validate and accept Form N-PORT filings
effectively. At this time, the Commission also believes that a longer
period is not necessary and would increase the costs to the Commission
and other users of

investment company portfolio information.
    As an alternative to the tiered EDGAR submission requirement on
Form N-PORT for larger and smaller fund groups, we considered a nine-
month delay in the Form N-PORT submission requirement only for larger
fund groups. Such a delay would not allow smaller fund groups to
benefit from the extra time to comply with the new requirements and
potentially benefit from the lessons learned by larger fund groups. As
discussed above, we are not revisiting the decision made in the
Adopting Release to maximize the potential for smaller fund groups (and
any external vendors that would be used by both larger and smaller fund
groups) to benefit from lessons learned by larger fund groups, and
therefore we are preserving a tiered requirement for the Form N-PORT
EDGAR submission process.\62\ Relatedly, similar to larger fund groups,
we considered requiring smaller fund groups to prepare and maintain
records of the information that is required to be included in Form N-
PORT during the delay. However, delaying the filing requirement for
smaller fund groups allows them to benefit from the lessons learned by
larger fund groups in preparing and filing Form N-PORT on EDGAR as
discussed in the Adopting Release.\63\
---------------------------------------------------------------------------

    \62\ See supra Part I.C.
    \63\ See Adopting Release, supra note 1, at 81966.
---------------------------------------------------------------------------

    As an alternative to the delay in the rescission of Form N-Q, we
considered not delaying the rescission of Form N-Q while delaying the
N-PORT EDGAR submission requirement by nine months. Such an alternative
would decrease the information that is available to the Commission and
various market participants, such as investors, about fund portfolio
performance. Such a reduction in information availability could
adversely impact investors, market efficiency, and capital formation.
    We did not revisit the decision made in the Adopting Release to
require that funds prepare the information that must be included on
Form N-PORT by June 1, 2018 for larger fund groups. The sole purpose of
the nine-month delay is to allow the Commission time to make progress
in the EDGAR system review and to implement and test resulting
modifications to the EDGAR system to allow EDGAR to accept new, large,
and complex structured data disclosures made on Form N-PORT by funds
effectively, with additional security measures in place.

III. Paperwork Reduction Act

    The Commission is delaying the requirement to submit reports on
Form N-PORT on the EDGAR system by nine months for larger fund groups
from July 30, 2018 to April 30, 2019 and for smaller fund groups from
July 30, 2019 to April 30, 2020. The Commission is also adopting rule
30b1-9(T) that requires funds in larger fund groups to maintain in
their records the information required in Form N-PORT during that nine-
month delay. In addition, the Commission is delaying the rescission of
current Form N-Q and delaying the effectiveness of certain amendments
to other rules and forms. We do not believe that any of these changes
will make any substantive modifications to any existing collection of
information requirements within the meaning of the Paperwork Reduction
Act of 1995 (``PRA'').\64\
---------------------------------------------------------------------------

    \64\ 44 U.S.C. 3501 through 3521.
---------------------------------------------------------------------------

A. Form N-PORT

    Rule 30b1-9(T) will require larger fund groups, during the nine-
month delay, to satisfy their reporting obligation by maintaining in
their records the information required to be included in Form N-PORT
instead of submitting the information via EDGAR. We believe that the
burden associated with preserving the information required by Form N-
PORT in the fund's records in an easily accessible place is similar to
the burden associated with submitting the prepared report on EDGAR.
Moreover,we believe that some of the burden for smaller fund groups
associated with filing Form N-PORT will be deferred for nine months,
but because many of the burdens associated with preparing Form N-PORT
will be incurred by funds before then, we believe that there will be no
substantive modification to the existing collection of information for
Form N-PORT. As a result, the Commission believes that the current PRA
burden estimates for the existing collection of information
requirements remain appropriate.\65\
---------------------------------------------------------------------------

    \65\ ``Form N-PORT Under the Investment Company Act, Monthly
Portfolio Investments Report'' (OMB Control No. 3235-0730).
---------------------------------------------------------------------------

B. Rescission of Form N-Q

    As discussed in the Adopting Release, in connection with our
adoption of Form N-PORT, we determined to rescind Form N-Q effective
August 1, 2019 in order to eliminate unnecessarily duplicative
reporting requirements once smaller funds began reporting on Form N-
PORT.\66\ The rescission of Form N-Q will affect all management
investment companies required to file reports on the form. Because
larger fund groups that are subject to rule 30b1-9(T) will be required
to file public reports on Form N-Q at the time they prepare and
preserve the information required by Form N-PORT, these requirements
include certain requirements that are duplicative, though they will not
involve duplicative public reporting requirements. Because we are
delaying the effective date of the rescission of Form N-Q by nine
months to May 1, 2020, the burden reduction we estimated will be
realized nine months later than contemplated by the Adopting Release.
As a result, the Commission believes that the current PRA burden
estimates for the existing collection of information requirements
remain appropriate.\67\
---------------------------------------------------------------------------

    \66\ Adopting Release, supra note 1, at 81998.
    \67\ ``Form N-Q--Quarterly Schedule of Portfolio Holdings of
Registered Management Investment Company'' (OMB Control No. 3235-
0578).
---------------------------------------------------------------------------

C. Registration Statement Forms

    We are delaying the effective date of technical and conforming
changes to Forms N-1A, N-2, and N-3 referring to the availability of
portfolio holdings schedules to May 1, 2020, the same day the
rescission of Form N-Q will now be effective.
    In the Adopting Release, we did not estimate a change to burden
hours or the external costs related to the technical and conforming
amendments related to the availability of portfolio holdings schedules.
Therefore, we do not believe that there is a change to burden hours or
the external costs resulting from the delay of the effective date of
these amendments. Accordingly, the Commission believes that the current
PRA burden estimates for the existing collection of information
requirements remain appropriate.\68\
---------------------------------------------------------------------------

    \68\ ``Form N-1A under the Securities Act of 1933 and under the
Investment Company Act of 1940, Registration Statement of Open-End
Management Investment Companies'' (OMB Control No. 3235-0307);
``Form N-2 under the Investment Company Act of 1940 and Securities
Act of 1933, Registration Statement of Closed-End Management
Investment Companies'' (OMB Control No. 3235-0026); and ``Form N-3
Under the Investment Company Act of 1940, Registration Statement of
Separate Accounts Organized as Management Investment Companies''
(OMB Control No. 3235-0316).
---------------------------------------------------------------------------

D. Amendments to Form N-CSR

    As discussed in the Adopting Release, in connection with the
rescission of Form N-Q, we also adopted amendments to Form N-CSR, the
reporting form used by management companies to file certified
shareholder reports under the Investment Company Act and the Exchange
Act.\69\
---------------------------------------------------------------------------

    \69\ Adopting Release, supra note 1, at 82004. Compliance with
the certification requirements will be mandatory, and responses are
not kept confidential.

---------------------------------------------------------------------------

    In the Adopting Release, we estimated that the amendments to the
certification requirements of Form N-CSR would not change the annual
hour burden or external costs associated with Form N-CSR.\70\
Therefore, we do not believe that there is a change to burden hours or
the external costs resulting from the delay of the effective date of
these amendments. Accordingly, the Commission believes that the current
PRA burden estimates for the existing collection of information
requirements remain appropriate.\71\
---------------------------------------------------------------------------

    \70\ Id. at 82005.
    \71\ ``Form N-CSR under the Securities Exchange Act of 1934 and
under the Investment Company Act of 1940, Certified Shareholder
Report of Registered Management Investment Companies'' (OMB Control
No. 3235-0570).
---------------------------------------------------------------------------

IV. Statutory Authority

    We are adopting the rules contained in this document under the
authority set forth in the Securities Act [15 U.S.C. 77a et seq.], the
Exchange Act, particularly sections 10, 13, 15, 23, and 35A thereof [15
U.S.C. 78a et seq.], the Investment Company Act, particularly sections
8, 30, 31, and 38 thereof [15 U.S.C. 80a et seq.], and 44 U.S.C. 3506.

List of Subjects

17 CFR Part 232

    Administrative practice and procedure, Reporting and recordkeeping
requirements, Securities.

17 CFR Part 239

    Reporting and recordkeeping requirements, Securities.

17 CFR Part 249

    Reporting and recordkeeping requirements, Securities.

17 CFR Parts 270 and 274

    Investment companies, Reporting and recordkeeping requirements,
Securities.

    For reasons set forth in the preamble, title 17, chapter II of the
Code of Federal Regulations is amended as follows:

PART 270--RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940

0
1. The authority citation for part 270 continues to read, in part, as
follows:

    Authority: 15 U.S.C. 80a-1 et seq., 80a-34(d), 80a-37, 80a-39,
and Pub. L. 111-203, sec. 939A, 124 Stat. 1376 (2010), unless
otherwise noted.

* * * * *

0
2. Section 270.30b1-9(T) is added to read as follows:

Sec.  270.30b1-9(T)   Temporary rule regarding monthly report.

    (a) Until April 1, 2019, each registered management investment
company subject to Sec.  270.30b1-9 of this chapter must satisfy its
reporting obligation under that section by maintaining in its records
the information that is required to be included in Form N-PORT (Sec.
274.150 of this chapter).
    (b) The information maintained in the registered management
investment company's records under paragraph (a) of this section shall
be treated as a record under section 31(a)(1) of the Act [15 U.S.C.
80a-30(a)(1)] and Sec.  270.31a-1(b) of this chapter subject to the
requirements of Sec.  270.31a-2(a)(2) of this chapter.
    (c) This section will expire and no longer be effective on March
31, 2026.

    By the Commission.

    Dated: December 8, 2017.
Brent J. Fields,
Secretary.
[FR Doc. 2017-26922 Filed 12-13-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 143 (Wednesday, July 25, 2012)]
[Notices]
[Pages 43586-43589]
[FR Doc No: 2012-18102]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP12-479-000]

Southern Star Central Gas Pipeline, Inc.; Notice of Intent To
Prepare an Environmental Assessment for the Proposed Line V Pipeline
Retirement Project and Request for Comments On Environmental Issues

    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) will prepare an environmental assessment (EA) that will
discuss the environmental impacts of the Line V Pipeline Retirement
Project involving abandonment of facilities by Southern Star Central
Gas Pipeline, Inc. (Southern Star) in Logan and Oklahoma Counties,
Oklahoma. The Commission will use this EA in its decision-making
process to determine whether the project is in the public convenience
and necessity.
    This notice announces the opening of the scoping process the
Commission will use to gather input from the public and interested
agencies on the project. Your input will help the Commission staff
determine what issues they need to evaluate in the EA. Please note that
the scoping period will close on August 17, 2012.
    This notice is being sent to the Commission's current environmental
mailing list for this project. State and local government
representatives should notify their constituents of this proposed
project and encourage them to comment on their areas of concern.
    Southern Star provided landowners with a fact sheet prepared by the
FERC entitled ``An Interstate Natural Gas Facility On My Land? What Do
I Need To Know?''. This fact sheet addresses a number of typically-
asked questions, including the use of eminent domain and how to
participate in the Commission's proceedings. It is also available for
viewing on the FERC Web site (www.ferc.gov).

Summary of the Proposed Project

    Southern Star proposes to abandon 16.14 miles of 20-inch-diameter
natural gas pipeline, known as Line V, in Logan and Oklahoma Counties,
Oklahoma. Southern Star states that due to the age of Line V and the
use of coupled pipe, Line V cannot meet the inspection requirement of
the U.S. Department of Transportation's Pipeline and Hazardous
Materials Safety Administration. Line V has been looped with a 20-inch-
diameter line and no longer provides service to domestic customers.\1\
Southern Star would abandon in-place approximately 13.18 miles of pipe,
and would abandon by removal the remaining 2.96 miles of pipe as
requested by landowners. Abandonment of the proposed facilities would
disturb about 49 acres of land during construction for pipeline
removal, extra workspace, access roads, and staging areas. The general
location of the project facilities is shown in appendix 1.\2\
---------------------------------------------------------------------------

    \1\ A pipeline loop is a segment of pipe constructed parallel to
an existing pipeline.
    \2\ The appendices referenced in this notice will not appear in
the Federal Register. Copies of appendices were sent to all those
receiving this notice in the mail and are available at www.ferc.gov
using the link called ``eLibrary'' or from the Commission's Public
Reference Room, 888 First Street NE., Washington, DC 20426, or call
(202) 502-8371. For instructions on connecting to eLibrary, refer to
the last page of this notice.
---------------------------------------------------------------------------

The EA Process

    The National Environmental Policy Act (NEPA) requires the
Commission to take into account the environmental impacts that could
result from an action whenever it considers the issuance of a
Certificate of Public Convenience and Necessity. NEPA also requires us
\3\ to discover and address concerns the public may have about
proposals. This process is referred to as ``scoping.'' The main goal of
the scoping process is to focus the analysis in the EA on the important
environmental issues. By this notice, the Commission requests public
comments on the scope of the issues to address in the EA. We will
consider all filed comments during the preparation of the EA.
---------------------------------------------------------------------------

    \3\ ``We,'' ``us,'' and ``our'' refer to the environmental staff
of the Commission's Office of Energy Projects.
---------------------------------------------------------------------------

    In the EA we will discuss impacts that could occur as a result of
the construction and operation of the proposed project under these
general headings:
     Geology and soils;
     Land use;
     Water resources, fisheries, and wetlands;
     Cultural resources;
     Vegetation and wildlife;
     Air quality and noise;
     Endangered and threatened species; and
     Public safety.
    We will also evaluate reasonable alternatives to the proposed
project or portions of the project, and make recommendations on how to
lessen or avoid impacts on the various resource areas.
    The EA will present our independent analysis of the issues. The EA
will be available in the public record through eLibrary. Depending on
the comments received during the scoping process, we may also publish
and distribute the EA to the public for an allotted comment period. We
will consider all comments on the EA before making our recommendations
to the Commission. To ensure we have the opportunity to consider and
address your comments, please carefully follow the instructions in the
Public Participation section beginning on page 4.
    With this notice, we are asking agencies with jurisdiction by law
and/or special expertise with respect to the environmental issues of
this project to formally cooperate with us in the preparation of the
EA.\4\ Agencies that would like to request cooperating agency status
should follow the instructions for filing comments provided under the
Public Participation section of this notice.
---------------------------------------------------------------------------

    \4\ The Council on Environmental Quality regulations addressing
cooperating agency responsibilities are at Title 40, Code of Federal
Regulations, 1501.6.
---------------------------------------------------------------------------

Consultations Under Section 106 of the National Historic Preservation
Act

    In accordance with the Advisory Council on Historic Preservation's
implementing regulations for section

106 of the National Historic Preservation Act, we are using this notice
to initiate consultation with the State Historic Preservation Office
(SHPO), and to solicit their views and those of other government
agencies, interested Indian tribes, and the public on the project's
potential effects on historic properties.\5\ We will define the
project-specific Area of Potential Effects (APE) in consultation with
the SHPO as the project develops. On natural gas facility projects, the
APE at a minimum encompasses all areas subject to ground disturbance
(examples include construction right-of-way, contractor/pipe storage
yards, compressor stations, and access roads). Our EA for this project
will document our findings on the impacts on historic properties and
summarize the status of consultations under section 106.
---------------------------------------------------------------------------

    \5\ The Advisory Council on Historic Preservation's regulations
are at Title 36, Code of Federal Regulations, Part 800. Those
regulations define historic properties as any prehistoric or
historic district, site, building, structure, or object included in
or eligible for inclusion in the National Register of Historic
Places.
---------------------------------------------------------------------------

Public Participation

    You can make a difference by providing us with your specific
comments or concerns about the project. Your comments should focus on
the potential environmental effects, reasonable alternatives, and
measures to avoid or lessen environmental impacts. The more specific
your comments, the more useful they will be. To ensure that your
comments are timely and properly recorded, please send your comments so
that the Commission receives them in Washington, DC on or before August
17, 2102.
    For your convenience, there are three methods which you can use to
submit your comments to the Commission. In all instances please
reference the project docket number (CP12-479-000) with your
submission. The Commission encourages electronic filing of comments and
has expert staff available to assist you at<PHONE_NUMBER> or
<EMAIL_ADDRESS>    (1) You can file your comments electronically using the eComment
feature on the Commission's Web site (www.ferc.gov) under the link to
Documents and Filings. This is an easy method for interested persons to
submit brief, text-only comments on a project;
    (2) You can file your comments electronically using the eFiling
feature on the Commission's Web site (www.ferc.gov) under the link to
Documents and Filings. With eFiling, you can provide comments in a
variety of formats by attaching them as a file with your submission.
New eFiling users must first create an account by clicking on
``eRegister.'' You must select the type of filing you are making. If
you are filing a comment on a particular project, please select
``Comment on a Filing''; or
    (3) You can file a paper copy of your comments by mailing them to
the following address: Kimberly D. Bose, Secretary, Federal Energy
Regulatory Commission, 888 First Street NE., Room 1A, Washington, DC
20426.

Environmental Mailing List

    The environmental mailing list includes federal, state, and local
government representatives and agencies; elected officials;
environmental and public interest groups; Native American Tribes; other
interested parties; and local libraries and newspapers. This list also
includes all affected landowners (as defined in the Commission's
regulations) who are potential right-of-way grantors, whose property
may be used temporarily for project purposes, or who own homes within
certain distances of aboveground facilities, and anyone who submits
comments on the project. We will update the environmental mailing list
as the analysis proceeds to ensure that we send the information related
to this environmental review to all individuals, organizations, and
government entities interested in and/or potentially affected by the
proposed project.
    If we publish and distribute the EA, copies will be sent to the
environmental mailing list for public review and comment. If you would
prefer to receive a paper copy of the document instead of the CD
version or would like to remove your name from the mailing list, please
return the attached Information Request (appendix 2).

Becoming an Intervenor

    In addition to involvement in the EA scoping process, you may want
to become an ``intervenor'' which is an official party to the
Commission's proceeding. Intervenors play a more formal role in the
process and are able to file briefs, appear at hearings, and be heard
by the courts if they choose to appeal the Commission's final ruling.
An intervenor formally participates in the proceeding by filing a
request to intervene. Instructions for becoming an intervenor are in
the User's Guide under the ``e-filing'' link on the Commission's Web
site.

Additional Information

    Additional information about the project is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC Web site at www.ferc.gov using the ``eLibrary'' link. Click on the
eLibrary link, click on ``General Search'' and enter the docket number,
excluding the last three digits in the Docket Number field (i.e., CP12-
479). Be sure you have selected an appropriate date range. For
assistance, please contact FERC Online Support at
<EMAIL_ADDRESS>or toll free at<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>. The eLibrary link also provides access to the
texts of formal documents issued by the Commission, such as orders,
notices, and rulemakings.
    In addition, the Commission now offers a free service called
eSubscription which allows you to keep track of all formal issuances
and submittals in specific dockets. This can reduce the amount of time
you spend researching proceedings by automatically providing you with
notification of these filings, document summaries, and direct links to
the documents. Go to www.ferc.gov/esubscribenow.htm.
    Finally, public meetings or site visits will be posted on the
Commission's calendar located at www.ferc.gov/EventCalendar/EventsList.aspx along with other related information.

    Dated: July 18, 2012.
Kimberly D. Bose,
 Secretary.
BILLING CODE 6717-01-P

Appendix 1

[GRAPHIC] [TIFF OMITTED] TN25JY12.009

BILLING CODE 6717-01-C

Appendix 2

INFORMATION REQUEST

Line V Retirement Project

Name-------------------------------------------------------------------

Agency-----------------------------------------------------------------

Address----------------------------------------------------------------

City-------- State---- Zip Code----

[square] Please send me a paper copy of the published NEPA document

[square] Please remove my name from the mailing list

FROM-------------------------------------------------------------------

-----------------------------------------------------------------------

-----------------------------------------------------------------------

-----------------------------------------------------------------------

ATTN: OEP--Gas 1, PJ--11.1, Federal Energy Regulatory Commission, 888
First Street NE, Washington, DC 20426

(Docket No. CP12-479-000 Line V Retirement Project)

Staple or Tape Here

[FR Doc. 2012-18102 Filed 7-24-12; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 80, Number 245 (Tuesday, December 22, 2015)]
[Rules and Regulations]
[Pages 79472-79473]
[FR Doc No: 2015-32159]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 73

[Docket No. FAA-2015-7213; Airspace Docket No. 15-ASO-12]
RIN 2120-AA66

Amendment of Restricted Areas R-2932, R-2933, R-2934 and R-2935;
Cape Canaveral, FL

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This action updates the using agency information for
restricted areas R-2932, R-2933, R-2934 and R-2935; Cape Canaveral, FL.
This is an administrative change to reflect the current organization
tasked with using agency responsibilities for the restricted areas. It
does not affect the boundaries, designated altitudes, time of
designation or activities conducted within the restricted areas.

DATES: Effective date: 0901 UTC, March 31, 2016.

FOR FURTHER INFORMATION CONTACT: Paul Gallant, Airspace Policy Group,
Office of Airspace Services, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 20591; telephone: (202) 267-
8783.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority.
    This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the
FAA is charged with prescribing regulations to

assign the use of the airspace necessary to ensure the safety of
aircraft and the efficient use of airspace. This regulation is within
the scope of that authority as it updates the using agency for
restricted areas R-2932, R-2933, R-2934 and R-2935; Cape Canaveral, FL
to reflect the current organization responsible for the restricted
areas.

The Rule

    This action amends Title 14 Code of Federal Regulations (14 CFR)
part 73 by updating the using agency name for restricted areas R-2932,
R-2933, R-2934 and R-2935; Cape Canaveral, FL, to Commander, 45th Space
Wing, Patrick AFB, FL. The name change reflects the current
organization assigned using agency responsibilities for the restricted
areas. This is an administrative change that does not affect the
boundaries, designated altitudes, or activities conducted within the
restricted areas; therefore, notice and public procedure under 5 U.S.C.
553(b) are unnecessary.

Regulatory Notices and Analyses

    The FAA has determined that this action only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
only affects air traffic procedures and air navigation, it is certified
that this rule, when promulgated, does not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1F, Environmental Impacts: Policies and Procedures,
paragraph 5-6.5.d. This airspace action is an administrative change to
the description of restricted areas R-2932, R-2933, R-2934 and R-2935;
Cape Canaveral, FL, to update the using agency name. It does not alter
the dimensions, altitudes, time of designation, or use of the airspace;
therefore, it is not expected to cause any potentially significant
environmental impacts, and no extraordinary circumstances exists that
warrant preparation of an environmental assessment.

List of Subjects in 14 CFR Part 73

    Airspace, Prohibited areas, Restricted areas.

Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR part 73, as follows:

PART 73--SPECIAL USE AIRSPACE

0
1. The authority citation for part 73 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  73.29  [Amended]

0
2. Sec.  73.29 is amended as follows:
* * * * *

R-2932 Cape Canaveral, FL [Amended]

    By removing the words ``Using agency. Commander, 1st Range
Operations Squadron, Cape Canaveral AFS, FL'' and inserting in their
place ``Using agency. Commander, 45th Space Wing, Patrick AFB, FL.''

R-2933 Cape Canaveral, FL [Amended]

    By removing the words ``Using agency. Commander, 1st Range
Operations Squadron, Cape Canaveral AFS, FL'' and inserting in their
place ``Using agency. Commander, 45th Space Wing, Patrick AFB, FL.''

R-2934 Cape Canaveral, FL [Amended]

    By removing the words ``Using agency. Commander, 1st Range
Operations Squadron, Cape Canaveral AFS, FL'' and inserting in their
place ``Using agency. Commander, 45th Space Wing, Patrick AFB, FL.''

R-2935 Cape Canaveral, FL [Amended]

    By removing the words ``Using agency. Commander, 1st Range
Operations Squadron, Cape Canaveral AFS, FL'' and inserting in their
place ``Using agency. Commander, 45th Space Wing, Patrick AFB, FL.''
* * * * *

    Issued in Washington, DC, on December 14, 2015.
Leslie M. Swann,
Acting Manager, Airspace Policy Group.
[FR Doc. 2015-32159 Filed 12-21-15; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 84, Number 129 (Friday, July 5, 2019)]
[Proposed Rules]
[Pages 32112-32114]
[FR Doc No: 2019-13880]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket Number USCG-2019-0469]
RIN 1625-AA00

Safety Zone; Perch and Pilsner Festival, Lake Erie, Conneaut, OH

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Coast Guard is proposing to establish a safety zone for
navigable waters within a defined area off Conneaut Township Park
during the Perch and Pilsner Festival Water Ski Show. This action is
necessary to provide for the safety of life on the navigable waters in
Conneaut Harbor, Lake Erie, Conneaut, OH during a water ski show on
September 7, 2019. We invite your comments on this proposed rulemaking.

DATES: Comments and related material must be received by the Coast
Guard on or before August 5, 2019.

ADDRESSES: You may submit comments identified by docket number USCG-
2019-0469 using the Federal eRulemaking Portal at https://www.regulations.gov. See the ``Public Participation and Request for
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
proposed rulemaking, call or email MST2 Meaghan Barnaby, Waterways
Management, U.S. Coast Guard Marine Safety Unit Cleveland; telephone
216-937-6004, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
Sec.  Section
U.S.C. United States Code

II. Background, Purpose, and Legal Basis

    On March 7, 2019, the Conneaut Area Chamber of Commerce notified
the Coast Guard that it will be conducting a Water Ski Show from Noon
to 5 p.m. on September 7, 2019. There will be three separate Water Ski
demonstrations within the specified period. The Coast Guard determined
that a high volume of vessels operating in the vicinity of the event is
a safety concern for the event participants.
    The purpose of this rulemaking is to protect the safety of vessels,
participants, and the navigable waters in Conneaut Harbor, Lake Erie,
Conneaut, OH shoreward of a line between the following positions:
41[deg]58'09'' N, 080[deg]33'22'' W and 41[deg]58'07'' N,
080[deg]33'12'' W (NAD83) before, during, and immediately after the
scheduled event. The Coast Guard is proposing this rulemaking under
authority in 46 U.S.C. 70034 (previously 33 U.S.C. 1231).

III. Discussion of Proposed Rule

    The Captain of the Port is proposing to establish a safety zone
from 11:45 a.m. through 5:15 p.m. on September 7,

2019. The safety zone would cover all navigable waters in Conneaut
Harbor, Lake Erie, Conneaut, OH shoreward of a line between the
following positions: 41[deg]58'09'' N, 080[deg]33'22'' W and
41[deg]58'07'' N, 080[deg]33'12'' W (NAD83). The duration of the zone
is intended to protect the safety of vessels, participants, and these
navigable waters before, during, and immediately after the scheduled
Noon to 5 p.m. water ski show. No vessel or person would be permitted
to enter the safety zone without obtaining permission from the Captain
of the Port or a designated representative. The regulatory text we are
proposing appears at the end of this document.

IV. 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 and Executive orders and
we discuss First Amendment rights of protestors.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 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. Executive Order 13771 directs agencies to control
regulatory costs through a budgeting process. This NPRM is not
designated a ``significant regulatory action,'' under Executive Order
12866. Accordingly, the NPRM was not reviewed by the Office of
Management and Budget (OMB), and pursuant to OMB guidance it is exempt
from the requirements of Executive Order 13771.
    This regulatory action determination is based on the conclusion
that this rule is not a significant regulatory action. We anticipate
that it will have minimal impact on the economy, will not interfere
with other agencies, will not adversely alter the budget of any grant
or loan recipients, and will not raise any novel legal or policy
issues. The safety zone created by this rule will be relatively small
and enforced for a relatively short time. Also, the safety zone is
designed to minimize its impact on navigable waters. Furthermore, the
safety zone is designed to allow vessels to transit around it. Thus,
restrictions on vessel movement within that particular area are
expected to be minimal. Under certain conditions, moreover, vessels may
still transit through the safety zone when permitted by the Captain of
the Port.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. 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. 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.
    While some owners or operators of vessels intending to transit the
safety zone may be small entities, for the reasons stated in section
IV.A above, this proposed rule would not have a significant economic
impact on any vessel owner or operator.
    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.
    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
section. 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.

C. Collection of Information

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

D. Federalism and Indian Tribal Governments

    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
have determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, 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. If
you believe this proposed rule has implications for federalism or
Indian tribes, please contact the person listed in the FOR FURTHER
INFORMATION CONTACT section.

E. 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.

F. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Directive 023-01 and Environmental Planning COMDTINST 5090.1
(series), which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (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. This proposed rule involves a safety
zone lasting five and a half hours that would prohibit entry in all
waters in Conneaut Harbor, Lake Erie, Conneaut, OH shoreward of a line
between the following positions: 41[deg]58'09'' N, 080[deg]33'22'' W
and 41[deg]58'07'' N, 080[deg]33'12'' W (NAD83). Normally such actions
are categorically excluded from further review under paragraph L60(a)
in Table 3-1 of U.S. Coast Guard Environmental Planning Implementing
Procedures 5090.1. A preliminary Record of Environmental Consideration
supporting this determination is available in the docket where
indicated under ADDRESSES. We seek any comments or information that may
lead to the discovery of a

significant environmental impact from this proposed rule.

G. 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.

V. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. 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.
    We encourage you to submit comments through the Federal eRulemaking
Portal at https://www.regulations.gov. If your material cannot be
submitted using https://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
    We accept anonymous comments. All comments received will be posted
without change to https://www.regulations.gov and will include any
personal information you have provided. For more about privacy and the
docket, visit https://www.regulations.gov/privacyNotice.
    Documents mentioned in this NPRM as being available in the docket,
and all public comments, will be in our online docket at https://www.regulations.gov and can be viewed by following that website's
instructions. Additionally, if you go to the online docket and sign up
for email alerts, you will be notified when comments are posted or a
final rule is published.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and record
keeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard is
proposing to amend 33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority:  46 U.S.C. 70034, 70051; 33 CFR 1.05-1, 6.04-1, 6.04-
6, and 160.5; Department of Homeland Security Delegation No. 0170.1.

0
2. Add Sec.  165.T09-0469 to read as follows:

Sec.  165.T09-0469   Safety Zone; Perch and Pilsner Festival; Lake
Erie, Conneaut, OH.

    (a) Location. The safety zone encompasses all waters in Conneaut
Harbor, Lake Erie, Conneaut, OH shoreward of a line between the
following positions: 41[deg]58'09'' N, 080[deg]33'22'' W and
41[deg]58'07'' N, 080[deg]33'12'' W (NAD83).
    (b) Enforcement period. This regulation will be enforced from 11:45
a.m. through 5:15 p.m. on September 7, 2019.
    (c) Regulations. (1) In accordance with the general regulations in
Sec.  165.23 of this part, entry into, transiting, or anchoring within
this safety zone is prohibited unless authorized by the Captain of the
Port Buffalo or a designated on-scene representative.
    (2) This safety zone is closed to all vessel traffic, except as may
be permitted by the Captain of the Port Buffalo or a designated on-
scene representative.
    (3) The ``on-scene representative'' of the Captain of the Port
Buffalo is any Coast Guard commissioned, warrant or petty officer who
is designated by the Captain of the Port Buffalo to act on his or her
behalf.
    (4) Vessel operators desiring to enter or operate within the safety
zone shall contact the Captain of the Port Buffalo or an on-scene
representative to obtain permission to do so. The Captain of the Port
Buffalo or an on-scene representative may be contacted via VHF Channel
16. Vessel operators given permission to enter or operate in the safety
zone must comply with all directions given to them by the Captain of
the Port Buffalo, or his or her on-scene representative.

    Dated: June 25, 2019.
Joseph S. Dufresne,
Captain, U.S. Coast Guard, Captain of the Port Buffalo.
[FR Doc. 2019-13880 Filed 7-3-19; 8:45 am]
 BILLING CODE 9110-04-P