[Federal Register Volume 82, Number 129 (Friday, July 7, 2017)]
[Rules and Regulations]
[Pages 31442-31449]
[FR Doc No: 2017-14312]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 742, 744, 772, and 774

[Docket No. 170202139-7139-01]
RIN 0694-AH33

Revisions to the Export Administration Regulations Based on the
2016 Missile Technology Control Regime Plenary Agreements

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the
Export Administration Regulations (EAR) to reflect changes to the
Missile Technology Control Regime (MTCR) Annex that were agreed to by
MTCR member countries at the October 2016 Plenary in Busan, South
Korea, and the March 2016 Technical Experts Meeting (TEM) in Luxembourg
City, Luxembourg. This final rule revises thirteen Export Control
Classification Numbers (ECCNs), adds one ECCN, revises two EAR defined
terms (including making other EAR conforming changes for the use of
these two terms) and makes conforming EAR changes where needed to
implement the changes that were agreed to at the meetings and to better
align the missile technology (MT) controls on the Commerce Control List
(CCL) with the MTCR Annex.

DATES: This rule is effective July 7, 2017.

FOR FURTHER INFORMATION CONTACT: Sharon Bragonje, Nuclear and Missile
Technology Controls Division, Bureau of Industry and Security, Phone:
(202) 482-0434; Email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    The Missile Technology Control Regime (MTCR or Regime) is an export
control arrangement among 35 nations, including most of the world's
suppliers of advanced missiles and missile-related equipment,
materials, software and technology. The regime establishes a common
list of controlled items (the Annex) and a common export control policy
(the Guidelines) that member countries implement in accordance with
their national export controls. The MTCR seeks to limit the risk of
proliferation of weapons of mass destruction by controlling exports of
goods and technologies that could make a contribution to delivery
systems (other than manned aircraft) for such weapons.
    In 1993, the MTCR's original focus on missiles for nuclear weapons
delivery was expanded to include the proliferation of missiles for the
delivery of all types of weapons of mass destruction (WMD), i.e.,
nuclear, chemical and biological weapons. Such proliferation has been
identified as a threat to international peace and security. One way to
address this threat is to maintain vigilance over the transfer of
missile equipment, material, and related technologies usable for
systems capable of delivering WMD. MTCR members voluntarily pledge to
adopt the Regime's export Guidelines and to restrict the export of
items contained in the Regime's Annex. The Regime's Guidelines are
implemented through the national export control laws, regulations and
policies of the regime members.

Amendments to the Export Administration Regulations (EAR)

    This final rule revises the Export Administration Regulations (EAR)
to reflect changes to the MTCR Annex agreed to at the October 2016
Plenary in Busan, South Korea, and changes resulting from the March
2016 Technical Experts Meeting (TEM) in Luxembourg City, Luxembourg.
References are provided below for the MTCR Annex changes agreed to at
the meetings that correspond to the EAR revisions described below. This
rule also makes changes to the Commerce Control List (CCL) (Supplement
No. 1 to Part 774 of the EAR) and to other EAR provisions in order to
conform with the MTCR Annex. All of the changes in this final rule
align the MT controls on the CCL and other parts of the EAR with the
MTCR Annex. In the discussion below, BIS identifies the origin of each
change in the regulatory text of this final rule by using one the
following parenthetical phrases: (Busan 2016 Plenary), (Luxembourg 2016
TEM), or (Conforming Change to MTCR Annex).
    Sec.  742.5 (Missile technology). In Sec.  742.5 (Missile
technology), this final rule revises the first sentence of paragraph
(a)(2), which describes the definition of ``missiles.'' The term
``missiles'' is a defined term in Sec.  772.1, but for ease of
reference the first sentence of this paragraph (a)(2) restates the
definition. As described in the paragraphs below, this final rule
revises the definitions of ``missiles'' and ``unmanned aerial
vehicles'' in Sec.  772.1 of the EAR, so conforming changes are needed
in Sec. Sec.  742.5 and 744.3, as described below.
    Conforming Change to Sec.  742.5(a)(2). This final rule makes
conforming changes in paragraph (a)(2) of Sec.  742.5,

by replacing the term ``ballistic missile systems'' with the term
``ballistic missiles'' (MTCR Annex Change, Category I: Item 1.A.1.,
Luxembourg 2016 TEM), and by replacing the term ``cruise missile
systems'' with the term ``cruise missiles.'' (MTCR Annex Change,
Category I: Item 1.A.2., Luxembourg 2016 TEM). This final rule also
makes a conforming change by replacing the term ``unmanned air
vehicles'' with the term ``unmanned aerial vehicles.'' (Conforming
Change to MTCR Annex). Substantively, there is no difference between
the old and revised terms, but this final rule makes these conforming
changes to ensure consistent use of the terminology throughout the EAR.
These conforming changes are described in more detail in the next three
paragraphs, describing the changes that this final rule makes to the
EAR definitions of ``missiles'' and ``unmanned aerial vehicles.''
    Conforming Change to Sec.  744.3 (Restrictions on certain rocket
systems (including ballistic missile systems and space launch vehicles
and sounding rockets) and unmanned air vehicles (including cruise
missile systems, target drones and reconnaissance drones) end-uses).
This final rule makes conforming changes in Sec.  744.3 by changing the
term ``ballistic missile systems'' to ``ballistic missiles'' (MTCR
Annex Change, Category I: Item 1.A.1., Luxembourg 2016 TEM), and
changing the term ``cruise missile systems'' to ``cruise missiles.''
(MTCR Annex Change, Category I: Item 1.A.2., Luxembourg 2016 TEM).
These conforming changes are described in more detail in the next two
paragraphs describing the changes that this final rule makes to the EAR
definitions of ``missiles'' and ``unmanned aerial vehicles.'' In
addition, this final rule makes conforming changes in Sec.  744.3 by
replacing the term ``unmanned air vehicles'' with ``unmanned aerial
vehicles'' wherever this term appears in this section. (Conforming
Change to MTCR Annex). Substantively, there is no difference between
the old and revised terms, but this final rule makes these conforming
changes to ensure consistent use of the terminology throughout the EAR.
Lastly, this final rule removes the first reference to ``and'' in the
section heading for the parenthetical phrase providing an illustrative
list of examples of rocket systems. This ``and'' is removed because it
is not needed to convey the meaning of the list of examples of rocket
systems. These conforming changes are clarifications and will not
change any scope of control. These changes are not expected to have any
impact on the number of license applications received by BIS.
    Changes and Conforming Amendments in Sec.  772.1 (Definitions of
Terms as Used in the Export Administration Regulations (EAR)). In Sec.
772.1, this final rule amends the definition of the term ``missiles.''
(MTCR Annex Change, Category I: Item 1.A.1., Luxembourg 2016 TEM).
Under the definition of ``missiles,'' this final rule revises the term
``ballistic missile systems'' by removing the word ``systems'' and
adding an ``s'' to ``missile.'' This final rule revises the definition
of ``missiles'' to reflect changes in the description of complete
rocket systems in the MTCR Annex. The final rule revises the term
``ballistic missile systems'' by removing the word ``systems,'' thus
referring only to the flight vehicle. This final rule makes this change
to conform to the other items in the illustrative list of ``missiles,''
and to clarify that a missile is covered under these entries that use
this control text, regardless of whether it is part of a larger system
(e.g., a system including the flight vehicle and ground support
equipment such as launch, recovery, and flight control equipment). This
final rule also makes conforming changes to the same terms used in
ECCNs 2B018 and 5A101, as described below. This final rule also makes a
conforming change in the ECCNs for the use of the term ``unmanned air
vehicles,'' which this final rule replaces with ``unmanned aerial
vehicles.'' (Conforming Change to MTCR Annex). Substantively, there is
no difference between the two formulations of the term, but this final
rule makes these conforming changes to ensure consistent use of the
terminology throughout the EAR. Lastly, this final rule removes the
last sentence of the definition and adds it as a note to the
definition. This clarifying change is made because the sentence is more
appropriately included as a note to the definition. These changes
correspond with the U.S. interpretation of the controls, and will not
change any scope of control. These changes are not expected to have any
impact on the number of license applications received by BIS.
    In addition, in Sec.  772.1, this final rule amends the definition
of the revised term, ``unmanned aerial vehicle.'' (MTCR Annex Change,
Category I: Item 1.A.2., Luxembourg 2016 TEM). Under the definition of
``unmanned aerial vehicle,'' this final rule revises the term ``cruise
missile systems'' by removing the word ``systems'' and adding an ``s''
to ``missile.'' The definition of ``unmanned aerial vehicles'' has been
updated to reflect changes in the description of unmanned aerial
vehicles in the MTCR Annex. The term ``Cruise missile systems'' has
been changed by removing the word ``systems,'' thus referring only to
the flight vehicle. This change both conforms to the other items in the
illustrative list of unmanned aerial vehicles, and clarifies that an
unmanned aerial vehicle is covered under these entries that use this
control text, regardless of whether or not it is part of a larger
system (e.g., a system including the flight vehicle and ground support
equipment such as launch, recovery, and flight control equipment). This
final rule also makes conforming changes to similar text used in ECCNs
2B018 and 5A101 described below. These changes correspond with the U.S.
interpretation of the controls, and will not change any scope of
control. These changes are not expected to have any impact on the
number of license applications received by BIS.

Amendments to the Commerce Control List (CCL)

    In addition, this final rule amends the CCL to reflect changes to
the MTCR Annex by amending thirteen ECCNs and adding new ECCN 9B104, as
follows:
    ECCN 1C107. This final rule amends ECCN 1C107 by revising the
introductory text of paragraph d. and adding a paragraph d.3 in the
List of Items Controlled section. This final rule also adds a Note and
a Technical Note to ECCN 1C107.d.3 to clarify the scope of paragraph
d.3. (MTCR Annex Change, Category II: Item 6.C.6., Busan 2016 Plenary).
Specifically, in the introductory text of ECCN 1C107.d, this final rule
removes the phrase ``silicon carbide materials'' and adds in its place
the phrase ``high-temperature materials.'' This change is made because
of the addition of certain bulk machinable ceramic composite materials
that this final rule adds to ECCN 1C107 under new ``items'' paragraph
d.3. Ultra High Temperature Ceramic Composites (UHTCC) are materials
that combine Ultra High Temperature Ceramics (UHTC) with fiber
reinforcement. The UHTCs can be used in environments that exhibit
extremes in temperature, chemical reactivity, and erosive attack. The
combination of the UHTC and fiber reinforcement can mitigate some of
the traditional drawbacks associated with ceramics, including a
tendency to fracture. Typical end uses for these composites are leading
edges for hypersonic vehicles, nose tips for re-entry vehicles, rocket
motor throat inserts, jet vanes, and control surfaces, which this final
rule adds as examples

in the new control text. This final rule also adds a note to 1C107.d.3
to make clear that the UHTC materials that do not have fiber
reinforcement are not caught under this control. Additionally, this
final rule adds a technical note to 1C107.d to provide examples of
UHTCs which are included. This change is expected to result in an
increase of 1-3 applications received annually by BIS. This very small
increase is because this material is not widely used or exported, but
specific to the end uses described in the control text.
    ECCN 1C111. This final rule amends ECCN 1C111 by revising
paragraphs b.2 in the List of Items Controlled section to add a CAS
(Chemical Abstract Service) Number. CAS Numbers are numerical
identifiers assigned by the Chemical Abstracts Service (CAS) to every
chemical substance described in open scientific literature, including
organic and inorganic compounds, minerals, isotopes and alloys. The
inclusion of CAS Numbers will make it easier to identify the materials
controlled under this ``items'' paragraph of 1C111. This final rule
revises paragraph b.2 to add the CAS Number (CAS 69102-90-5) after the
material ``Hydroxy-terminated polybutadiene (including hydroxyl-
terminated polybutadiene) (HTPB).'' (MTCR Annex Change, Category II:
Item 4.C.5.b., Busan 2016 Plenary). This change is not expected to have
any impact on the number of license applications received by BIS.
    ECCN 2B018. This final rule amends ECCN 2B018 by revising the
``MT'' paragraph in the table in the License Requirements section by
revising the term ``ballistic missile systems'' to remove the term
``systems'' and add an ``s'' to the term ``missile.'' (MTCR Annex
Change, Category I: Item 1.A.1., Luxembourg 2016 TEM). In addition, in
the same ``MT'' paragraph, this final rule revises the term ``cruise
missile systems'' to remove the term ``systems'' and add an ``s'' to
the term ``missile.'' (MTCR Annex Change, Category I: Item 1.A.2.,
Luxembourg 2016 TEM). Lastly, this final rule makes conforming changes
in the same ``MT'' paragraph by replacing the term ``unmanned air
vehicles'' with ``unmanned aerial vehicles'' wherever this term appears
in this section. (Conforming Change to MTCR Annex). Substantively,
there is no difference between the old and revised terms, but this
final rule makes these conforming changes to ensure consistent use of
the terminology throughout the EAR. These are conforming changes for
the changes described above to the definitions of ``missiles'' and
``unmanned aerial vehicles.'' This is a clarification and will not
change any scope of control. This change is not expected to have any
impact on the number of license applications received by BIS.
    ECCN 2B109. This final rule amends ECCN 2B109 by revising the list
of examples included in the second technical note. This final rule
expands the list of examples to include interstages, because
interstages can also be manufactured using the flow forming machines
described in ECCN 2B109. (MTCR Annex Change, Category II: Item 3.B.3.,
Busan 2016 Plenary). This change is not expected to have any impact on
the number of license applications received by BIS, because this is
only a change to the list of examples of products that can be made by
this type of machine, and it does not change the scope of control.
    ECCN 5A101. This final rule amends the heading of ECCN 5A101 by
revising the term ``ballistic missile systems'' to remove the word
``systems'' and add an ``s'' to ``missile.'' (MTCR Annex Change,
Category I: Item 1.A.1., Luxembourg 2016 TEM). The final rule revises
the heading by revising the term ``cruise missile systems'' to remove
the word ``systems'' and add an ``s'' after ``missile.'' (MTCR Annex
Change, Category I: Item 1.A.2., Luxembourg 2016 TEM). These are
conforming changes for the changes described above to the definitions
of ``missiles'' and ``unmanned aerial vehicles.'' In addition, this
final rule revises the heading of ECCN 5A101 to create a separate
parenthetical phrase for the illustrative list of examples that are
unmanned aerial vehicles. This final rule does this by removing the
examples of ``cruise missiles, target drones, and reconnaissance
drones'' from the list of examples that followed the terms ``unmanned
aerial vehicle or rocket systems'' in the heading and adding those
examples immediately after the term unmanned aerial vehicle. This final
rule retains the rest of the examples from the parenthetical that
follows the term ``rocket systems,'' which will make it clearer that
this parenthetical list is an illustrative list of ``rocket systems.''
(Conforming Change to MTCR Annex). These are clarifications and will
not change any scope of control. These changes are not expected to have
any impact on the number of license applications received by BIS.
    ECCN 7A103. This final rule amends ECCN 7A103 by adding a
definition for ``inertial measurement equipment and systems'' for
purposes of ECCN 7A103. In addition, this final rule revises ``items''
paragraph a and adds Note 3 in the List of Items Controlled section.
(MTCR Annex Change, Category II: Item 9.A.6., Luxembourg 2016 TEM).
This final rule makes these changes to remove the ambiguous term
``other equipment.'' Instead, the locally defined term ``inertial
measurement equipment or systems'' that the final rule adds to ECCN
7A103, along with an illustrative list of such equipment and systems,
clarifies which types of equipment containing the specified
accelerometers or gyros are caught by this entry. This final rule also
removes the phrase ``and systems incorporating such equipment'' because
this phrase has been removed from the MTCR Annex. The changes this
final rule makes to ECCN 7A103 to increase the clarity of the control
should make the control more precise and rule out items not strictly
used for navigation purposes. This change is expected to result in a
decrease of 3 to 5 license applications received annually by BIS.
Lastly, this final rule updates and amends ECCN 7A103 by removing
Related Controls paragraph (2), which is no longer accurate after
changes were made to the EAR to correspond with changes made to USML
Category XII (especially for unmanned aerial vehicles (UAVs) ) that
became effective December 31, 2016 (See October 12, 2016, (81 FR 70320)
final rule). In addition, this paragraph (2) can be removed because the
USML Order of Review and CCL Order of Review will provide sufficient
guidance on where items that are subject to the ITAR are classified
under the USML and where items that are subject to the EAR are
classified in either the ``600 series'' or in other ECCNs in Category 7
of the CCL. Lastly, as a conforming change to the removal of paragraph
(2), this final rule redesignates Related Controls paragraph (3) as new
Related Controls paragraph (2).
    ECCNs 9A101, 9E101, and 9E102. This final rule amends ECCN 9E101 by
revising the Related Controls paragraph in the List of Items Controlled
section to make a conforming change for the use of the term ``unmanned
air vehicles,'' which this final rule changes to ``unmanned aerial
vehicles.'' In addition, this final rule amends ECCN 9E101 and 9E102 by
revising the headings of these two ECCNs to make conforming changes for
the use of the term ``unmanned air vehicles,'' which this final rule
changes to ``unmanned aerial vehicles.'' Substantively, there is not a
difference in the two formulations of the term, but for consistency
with how the term is used in other parts of the EAR, this final rule
makes these conforming changes. (Conforming Change to MTCR Annex). This
is a

clarification and will not change any scope of control. These changes
are not expected to have any impact on the number of license
applications received by BIS.
    New ECCN 9B104 and Related Conforming Amendments to 9D101, 9E001,
and 9E002. This final rule adds new ECCN 9B104 to control certain
aerothermodynamic test facilities. The facilities controlled under this
new ECCN 9B104 are those that are usable for rockets, missiles, or
unmanned aerial vehicles capable of achieving a ``range'' equal to or
greater than 300 km and their subsystems, and having an electrical
power supply equal to or greater than 5 MW or a gas supply total
pressure equal to or greater than 3 MPa. This final rule adds this new
ECCN 9B104 to complement the controls that already exist for
aerodynamic test facilities in order to fully cover the types of ground
test facilities necessary to reproduce the flight environments that
occur during the reentry phase. Plasma arc jet and plasma wind tunnel
facilities simulate the atmospheric reentry thermal effects due to high
velocity around the vehicles and are key to the qualification of
vehicle thermal protection subsystems. This final rule includes values
for electrical power supply and gas supply total pressure in new ECCN
9B104 to exclude commercial systems of a similar nature from this new
ECCN.
    In addition, this final rule adds a Related Definition as part of
new ECCN 9B104 to define the term ``aerothermodynamic test
facilities''. This definition specifies that these facilities include
plasma arc jet facilities and plasma wind tunnels for the study of
thermal and mechanical effects of airflow on objects. (MTCR Annex
Change, Category II: Item 15.B.6., Luxembourg 2016 TEM). As a
conforming change to the addition of ECCN 9B104, this final rule adds
9B104 to the heading of ECCN 9D101 and revises the ``MT'' paragraph in
the table in the License Requirements section of ECCNs 9E001 and 9E002
to add 9B104. The headings of ECCNs 9E001 and 9E002 do not need to be
revised to add technology for 9B104, because those two technology ECCNs
apply to 9B ECCNs, except for those specifically excluded in the ECCN
headings. These changes are expected to result in an increase of no
more than 1 application received annually by BIS, because such systems
and their software and technology are exported infrequently.
    ECCN 9D104. This final rule amends ECCN 9D104 by adding a note to
the List of Items Controlled section. This note clarifies that ECCN
9D104 also includes specific software for the conversion of manned
aircraft to an unmanned aerial vehicle. (MTCR Annex Change, Category
II: Item 1.D.2., Luxembourg 2016 TEM). This change is expected to
result in an increase of 1 to 2 applications received annually by BIS,
because, although this software was already controlled here, the note
will clarify the scope of ECCN 9D104.

Savings Clause

    Shipments of items removed from eligibility for a License Exception
or export or reexport without a license (NLR) as a result of this
regulatory action that were on dock for loading, on lighter, laden
aboard an exporting or reexporting carrier, or enroute aboard a carrier
to a port of export or reexport, on July 7, 2017, pursuant to actual
orders for export or reexport to a foreign destination, may proceed to
that destination under the previous eligibility for a License Exception
or export or reexport without a license (NLR) so long as they are
exported or reexported before August 7, 2017. Any such items not
actually exported or reexported before midnight, on August 7, 2017,
require a license in accordance with this rule.

Export Administration Act of 1979

    Although the Export Administration Act of 1979 expired on August
20, 2001, the President, through Executive Order 13222 of August 17,
2001, 3 CFR, 2001 Comp., p. 783 (2002), as amended by Executive Order
13637 of March 8, 2013, 78 FR 16129 (March 13, 2013) and as extended by
the Notice of August 4, 2016, 81 FR 52587 (August 8, 2016), has
continued the Export Administration Regulations in effect under the
International Emergency Economic Powers Act. BIS continues to carry out
the provisions of the Export Administration Act of 1979, as appropriate
and to the extent permitted by law, pursuant to Executive Order 13222,
as amended by Executive Order 13637.

Executive Order Requirements

    Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distribute impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This final rule has been designated a ``significant
regulatory action,'' although not economically significant, under
section 3(f) of Executive Order 12866. The MTCR was formed in 1987 by
the U.S. and G-7 countries (Canada, France, Germany, Italy, Japan, and
the UK) to address the increasing proliferation of nuclear weapons by
addressing the most destabilizing delivery system for such weapons. The
MTCR seeks to limit the risk of proliferation of weapons of mass
destruction by controlling exports of goods and technologies that could
make a contribution to delivery systems (other than manned aircraft)
for such weapons. The proliferation of such weapons has been identified
as a threat to domestic and international peace and security. Commerce
estimates this rule will increase the number of license requests by
fewer than four annually.
    This rule does not contain policies with Federalism implications as
that term is defined under E.O. 13132.
    For the purposes of E.O. 13771, this rule is issued with respect to
a national security function of the United States. The cost-benefit
analysis indicates the rule is intended to improve national security as
its primary direct benefit, and the regulation qualifies for a good
cause exception under 5 U.S.C. 553(b)(B). Accordingly, this rule meets
the requirements set forth in the April 5, 2017, OMB guidance
implementing E.O 13771, and is, therefore, exempt from the requirements
of E.O. 13771.

Paperwork Reduction Act Requirements

    Notwithstanding any other provision of law, no person may be
required to respond to or be subject to a penalty for failure to comply
with a collection of information, subject to the requirements of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless
that collection of information displays a currently valid Office of
Management and Budget (OMB) Control Number.
    This regulation involves a collection currently approved by OMB
under control number 0694-0088, Simplified Network Application
Processing System. This collection includes, among other things,
license applications, and carries a burden estimate of 43.8 minutes for
a manual or electronic submission for a total burden estimate of 31,833
hours. BIS expects the burden hours associated with this collection to
increase slightly by 2 hours and 19 minutes for an estimated cost
increase of $85. This increase is not expected to exceed the existing
estimates currently associated with OMB control number 0694-0088.
Although this final rule makes important changes to the EAR for

items controlled for missile technology reasons, Commerce believes the
overall increase in costs and burdens due to this rule will be minimal.
    Any comments regarding the collection of information associated
with this rule, including suggestions for reducing the burden, may be
sent to Jasmeet K. Seehra, Office of Management and Budget (OMB), by
email to<EMAIL_ADDRESS>or by fax to<PHONE_NUMBER>.

Administrative Procedure Act and Regulatory Flexibility Act
Requirements

    The provisions of the Administrative Procedure Act (APA) (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in effective date, are inapplicable
because this action involves a military and foreign affairs function of
the United States (5 U.S.C. 553(a)(1)). Immediate implementation of
these amendments fulfills the United States' international commitments
to the MTCR. The MTCR contributes to international peace and security
by promoting greater responsibility in transfers of missile technology
items that could make a contribution to delivery systems (other than
manned aircraft) for weapons of mass destruction. The MTCR consists of
35 member countries acting on a consensus basis. The changes discussed
in this rule implement agreements reached at the October 2016 Plenary
in Busan, South Korea, and the March 2016 Technical Experts Meeting in
Luxembourg City, Luxembourg. Since the United States is a significant
exporter of the items discussed in this rule, implementation of this
provision is necessary for the MTCR to achieve its purpose.
    Although the APA requirements in section 553 are not applicable to
this action under the provisions of paragraph (a)(1), this action also
falls within two other exceptions in the section. The subsection (b)
requirement that agencies publish a notice of proposed rulemaking that
includes information on the public proceedings does not apply when an
agency for good cause finds that the notice and public procedures are
impracticable, unnecessary, or contrary to the public interest, and the
agency incorporates the finding (and reasons therefor) in the rule that
is issued (5 U.S.C. 553(b)(B)). In addition, the section 553(d)
requirement that publication of a rule shall be made not less than 30
days before its effective date can be waived if an agency finds there
is good cause to do so.
    The section 553 requirements for notice and public procedures and
for a delay in the date of effectiveness do not apply to this rule, as
there is good cause to waive such practices. Delay in implementation
would disrupt the movement of these potentially national- and
international-security-threatening items globally, creating disharmony
between export control measures implemented by MTCR members. Export
controls work best when all countries implement the same export
controls in a timely manner. Delaying this rulemaking would prevent the
United States from fulfilling its commitment to the MTCR in a timely
manner, would injure the credibility of the United States in this and
other multilateral regimes, and may impair the international
communities' ability to effectively control the export of certain
potentially national- and international-security-threatening materials.
Therefore, this regulation is issued in final form, and is effective
July 7, 2017.
    Further, no other law requires that a notice of proposed rulemaking
and an opportunity for public comment be given for this final rule.
Because a notice of proposed rulemaking and an opportunity for public
comment are not required to be given for this rule under the
Administrative Procedure Act or by any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. Accordingly, no regulatory flexibility analysis is
required and none has been prepared.

List of Subjects

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 772

    Exports.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 742, 744, 772 and 774 of the Export
Administration Regulations (15 CFR parts 730-774) are amended as
follows:

PART 742--[AMENDED]

0
1. The authority citation for 15 CFR part 742 continues to read as
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058,
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp.,
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential
Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320;
Notice of August 4, 2016, 81 FR 52587 (August 8, 2016); Notice of
November 8, 2016, 81 FR 79379 (November 10, 2016).

0
2. Section 742.5 is amended by revising the first sentence of paragraph
(a)(2) to read as follows:

Sec.  742.5   Missile technology.

    (a) * * *
    (2) The term ``missiles'' is defined as rocket systems (including
ballistic missiles, space launch vehicles, and sounding rockets) and
unmanned aerial vehicle systems (including cruise missiles, target
drones, and reconnaissance drones) capable of delivering at least 500
kilograms (kg) payload to a range of at least 300 kilometers (km). * *
*
* * * * *

PART 744--[AMENDED]

0
3. The authority citation for 15 CFR part 744 continues to read as
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of January 20, 2016, 81 FR 3937
(January 22, 2016); Notice of August 4, 2016, 81 FR 52587 (August 8,
2016); Notice of September 15, 2016, 81 FR 64343 (September 19,
2016); Notice of November 8, 2016, 81 FR 79379 (November 10, 2016);
Notice of January 13, 2017, 82 FR 6165 (January 18, 2017).

0
4. Section 744.3 is amended:
0
a. By revising the section heading;
0
b. By revising paragraphs (a)(1), (2), (3), and the Note to paragraph
(a) of this section;
0
c. By revising paragraph (d)(1); and
0
d. By revising paragraph (d)(2)(ii), (iii), and (v) to read as follows:

Sec.  744.3   Restrictions on certain rocket systems (including
ballistic missiles, space launch vehicles and sounding rockets) and
unmanned aerial vehicles (including cruise missiles, target drones and
reconnaissance drones) end-uses.

    (a) * * *
    (1) Will be used in the design, development, production or use of
rocket systems or unmanned aerial

vehicles capable of a range of at least 300 kilometers in or by a
country listed in Country Group D:4 of Supplement No. 1 to part 740 of
the EAR.
    (2) Will be used, anywhere in the world except by governmental
programs for nuclear weapons delivery of NPT Nuclear Weapons States
that are also members of NATO, in the design, development, production
or use of rocket systems or unmanned aerial vehicles, regardless of
range capabilities, for the delivery of chemical, biological, or
nuclear weapons; or
    (3) Will be used in the design, development, production or use of
any rocket systems or unmanned aerial vehicles in or by a country
listed in Country Group D:4, but you are unable to determine:
    (i) The characteristics (i.e., range capabilities) of the rocket
systems or unmanned aerial vehicles, or
    (ii) Whether the rocket systems or unmanned aerial vehicles,
regardless of range capabilities, will be used in a manner prohibited
under paragraph (a)(2) of this section.

    Note to paragraph (a) of this section: For the purposes of this
section, ``Rocket Systems'' include, but are not limited to,
ballistic missiles, space launch vehicles, and sounding rockets.
Also, for the purposes of this section, ``unmanned aerial vehicles''
include, but are not limited to, cruise missiles, target drones and
reconnaissance drones.

* * * * *
    (d) * * *
    (1) Applications to export, reexport or transfer (in-country) the
items subject to this section will be considered on a case-by-case
basis to determine whether the export, reexport or transfer (in-
country) would make a material contribution to the proliferation of
certain rocket systems, or unmanned aerial vehicles. When an export,
reexport or transfer (in-country) is deemed to make a material
contribution, the license will be denied.
    (2) * * *
    (ii) The significance of the export, reexport or transfer in terms
of its contribution to the design, development, production or use of
certain rocket systems or unmanned aerial vehicles;
    (iii) The capabilities and objectives of the rocket systems or
unmanned aerial vehicles of the recipient country;
* * * * *
    (v) The types of assurances or guarantees against design,
development, production, or use for certain rocket system or unmanned
aerial vehicle delivery purposes that are given in a particular case;
and
* * * * *

PART 772--[AMENDED]

0
5. The authority citation for 15 CFR part 772 continues to read as
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783 Notice of August 8,
2016, 81 FR 52587 (August 8, 2016).

0
6. Section 772.1 is amended by revising the definitions of ``missiles''
and ``unmanned aerial vehicle (``UAV'')'' to read as follows:

Sec.  772.1   Definitions of terms as used in the Export Administration
Regulations (EAR).

* * * * *
    ``Missiles''. (All) Rocket systems (including ballistic missiles,
space launch vehicles, and sounding rockets) and unmanned aerial
vehicle systems (including cruise missiles, target drones, and
reconnaissance drones) ``capable of'' delivering at least 500 kilograms
payload to a range of at least 300 kilometers. See Sec.  746.3 for
definition of a ``ballistic missile'' to be exported or reexported to
Iraq or transferred within Iraq.
* * * * *
    ``Unmanned aerial vehicle'' (``UAV''). (Cat 9) Any ``aircraft''
capable of initiating flight and sustaining controlled flight and
navigation without any human presence on board.

    Note to definition of ``Unmanned aerial vehicle'' (``UAV''):
For the purposes of Sec.  744.3 of the EAR, unmanned air vehicles,
which are the same as ``unmanned aerial vehicles,'' include, but are
not limited to, cruise missiles, target drones and reconnaissance
drones.

* * * * *

PART 774--[AMENDED]

0
7. The authority citation for 15 CFR part 774 continues to read as
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 10
U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15 U.S.C. 1824a; 50 U.S.C.
4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR,
2001 Comp., p. 783; Notice of August 4, 2016, 81 FR 52587 (August 8,
2016).

0
8. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1C107 is amended:
0
a. By revising the introductory text of ``items'' paragraph d. in the
List of Items Controlled section; and
0
b. By adding paragraph d.3., including a Note and a Technical Note to
1C107.d.3., to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *
1C107 Graphite and ceramic materials, other than those controlled by
1C007, which can be machined to any of the following products as
follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:

    d. High-temperature ceramic materials, useable in rockets,
missiles, and unmanned aerial vehicles capable of achieving a
``range'' equal to or greater than 300 km, as follows:
* * * * *
    d.3. Bulk machinable ceramic composite materials consisting of
an `Ultra High Temperature Ceramic (UHTC)' matrix with a melting
point equal to or greater than 3000 [deg]C and reinforced with
fibers or filaments, usable for missile components (such as nose
tips, re-entry vehicles, leading edges, jet vanes, control surfaces,
or rocket motor throat inserts).

    Note:  ECCN 1C107.d.3. does not control `Ultra High Temperature
Ceramic (UHTC)' materials in non-composite form.

    Technical Note:  `Ultra High Temperature Ceramics (UHTC)'
includes: Titanium diboride (TiB2), zirconium diboride
(ZrB2), niobium diboride (NbB2), hafnium
diboride (HfB2), tantalum diboride (TaB2),
titanium carbide (TiC), zirconium carbide (ZrC), niobium carbide
(NbC), hafnium carbide (HfC), tantalum carbide (TaC).

* * * * *

0
9. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1C111 is amended by revising ``items'' paragraph b.2. in the
List of Items Controlled section to read as follows:

1C111 Propellants and constituent chemicals for propellants, other
than those specified in 1C011, as follows (see List of Items
Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    b. * * *
    b.2. Hydroxy-terminated polybutadiene (including hydroxyl-
terminated polybutadiene) (HTPB) (CAS 69102-90-5), except for
hydroxyl-terminated polybutadiene as specified in USML Category

V (see 22 CFR 121.1) (also see Related Controls Note #1 for this
ECCN);
* * * * *

0
10. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 2--Materials Processing, Export Control Classification Number
(ECCN) 2B018 is amended by revising the ``MT'' paragraph in the table
in the License Requirements section to read as follows:

2B018 Equipment on the Wassenaar Arrangement Munitions List.

License Requirements

Reason for Control: * * *

                                              Country chart  (See Supp.
                Control(s)                       No. 1 to  part 738)

                                * * * * *
MT applies to specialized machinery,        MT Column 1
 equipment, and gear for producing rocket
 systems (including ballistic missiles,
 space launch vehicles, and sounding
 rockets) and unmanned aerial vehicle
 systems (including cruise missiles,
 target drones, and reconnaissance drones)
 usable in systems that are controlled for
 MT reasons including their propulsion
 systems and components, and pyrolytic
 deposition and densification equipment.

                                * * * * *

* * * * *

0
11. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 2--Materials Processing, Export Control Classification Number
(ECCN) 2B109 is amended by revising Technical Note paragraph 2. at the
end of the ``items'' paragraph in the List of Items Controlled section
to read as follows:

2B109 Flow-forming machines, other than those controlled by 2B009,
and ``specially designed'' ``parts'' and ``components'' therefor.
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *

    Technical Notes:

* * * * *
    2. 2B109 does not control machines that are not usable in the
``production'' of propulsion ``parts,'' ``components'' and equipment
(e.g., motor cases and interstages) for ``missiles.''

0
12. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Telecommunications and ``Information Security,'' Part 1--
Telecommunications, Export Control Classification Number (ECCN) 5A101
is amended:
0
a. By revising the heading, and
0
b. By revising the Note at the end of the ``items'' paragraph to read
as follows:

5A101 Telemetering and telecontrol equipment, including ground
equipment, designed or modified for unmanned aerial vehicle
(including cruise missiles, target drones, and reconnaissance
drones) or rocket systems (including ballistic missiles, space
launch vehicles, and sounding rockets) capable of a maximum
``range'' equal to or greater than 300 km.
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *

    Note: ECCN 5A101 does not include items not designed or modified
for unmanned aerial vehicles (including cruise missiles, target
drones, and reconnaissance drones) or rocket systems (including
ballistic missiles, space launch vehicles and sounding rockets)
capable of a maximum ``range'' equal to or greater than 300km (e.g.,
telemetry circuit cards limited by design to reception only and
designed for use in personal computers).

0
13. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 7--Navigation and Avionics, Export Control Classification
Number (ECCN) 7A103 is amended:
0
a. By removing the Related Controls paragraph (2) and redesignating
Related Controls paragraph (3) as Related Controls paragraph (2) in the
List of Items Controlled section;
0
b. By revising the Related Definitions paragraph in the List of Items
Controlled section;
0
c. By revising the introductory text of ``items'' paragraph a. in the
List of Items Controlled section; and
0
d. By adding a Note 3 to ``items'' paragraph a. in the List of Items
Controlled section to read as follows:

7A103 Instrumentation, navigation equipment and systems, other than
those controlled by 7A003, and ``specially designed'' ``parts'' and
``components'' therefor, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
    Related Definitions: `Inertial measurement equipment or systems'
specified in 7A103.a. incorporate accelerometers or gyros to measure
changes in velocity and orientation in order to determine or
maintain heading or position without requiring an external reference
once aligned.

Items:

    a. `Inertial measurement equipment or systems' using
accelerometers or gyros controlled by 7A001, 7A002, 7A101 or 7A102,
and ``specially designed'' ``parts'' and ``components'' therefor;
* * * * *

    Note 3: 7A103.a. includes Attitude and Heading Reference Systems
(AHRSs), gyrocompasses, Inertial Measurement Units (IMUs), Inertial
Navigations Systems (INSs), Inertial Reference Systems (IRSs), and
Inertial Reference Units (IRUs).

* * * * *

0
14. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9A101 is amended by revising the Related Controls
paragraph in the List of Items Controlled section to read as follows:

9A101 Turbojet and turbofan engines, other than those controlled by
9A001, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: 9A101.b controls only engines for non-military
unmanned aerial vehicles [UAVs] or remotely piloted vehicles [RPVs],
and does not control other engines designed or modified for use in
``missiles'', which are ``subject to the ITAR'' (see 22 CFR parts
120 through 130).
* * * * *

0
15. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, add, between entries for Export
Control Classification Numbers (ECCNs) 9B010 and 9B105, ECCN 9B104 to
read as follows:

9B104 `Aerothermodynamic test facilities', usable for rockets,
missiles, or unmanned aerial vehicles capable of achieving a
``range'' equal to or greater than 300 km and their subsystems, and
having an electrical power supply equal to or greater than 5 MW or a
gas supply total pressure equal to or greater than 3 MPa.

License Requirements

Reasons for Control: MT, AT

                                            Country Chart (See Supp. No.
                Control(s)                         1 to  part 738)

MT applies to entire entry................  MT Column 1
AT applies to entire entry................  AT Column 1

List Based License Exceptions (See Part 740 for a description of all
license exceptions)

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Related Controls: See ECCNs 9D101, 9E001 and 9E002.
Related Definitions: `Aerothermodynamic test facilities' include
plasma arc jet facilities and plasma wind tunnels for the study of
thermal and mechanical effects of airflow on objects.
Items:

    The list of items controlled is contained in the ECCN heading.

0
16. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9D101 is amended by revising the heading to read as
follows:

9D101 ``Software'' ``specially designed'' or modified for the
``use'' of commodities controlled by 9B104, 9B105, 9B106, 9B116, or
9B117.

* * * * *

0
17. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9D104 is amended by adding a Note to the ``items''
paragraph in the List of Items Controlled section to read as follows:

9D104 ``Software'' specially designed or modified for the ``use'' of
equipment controlled by ECCN 9A001, 9A012 (for MT controlled items
only), 9A101 (except for items in 9A101.b that are ``subject to the
ITAR,'' see 22 CFR part 121), or 9A106.d.

* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *

    Note:  For a manned aircraft converted to operate as an unmanned
aerial vehicle specified in 9A012 and controlled for MT reasons,
9D104 includes ``software'', as follows:
    a. ``Software'' ``specially designed'' or modified to integrate
the conversion equipment with the aircraft system functions;
    b. ``Software'' ``specially designed'' or modified to operate
the aircraft as an unmanned aerial vehicle.

0
18. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9E001 is amended by revising the ``MT'' paragraph in the
table in the License Requirements section to read as follows:

9E001 ``Technology'' according to the General Technology Note for
the ``development'' of equipment or ``software'', controlled by
9A001.b, 9A004, 9A012, 9B (except for ECCNs 9B604, 9B610, 9B619,
9B990 and 9B991), or ECCN 9D001 to 9D004, 9D101, or 9D104.

License Requirements

Reason for Control: * * *

                                            Country chart (See Supp. No.
                Control(s)                         1 to part 738)

                                * * * * *
MT applies to ``technology'' for items      MT Column 1
 controlled by 9A012, 9B001, 9B002, 9B003,
 9B004, 9B005, 9B007, 9B104, 9B105, 9B106,
 9B115, 9B116, 9B117, 9D001, 9D002, 9D003,
 or 9D004 for MT reasons.

                                * * * * *

* * * * *

0
19. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9E002 is amended by revising the ``MT'' paragraph in the
table in the License Requirements section to read as follows:

9E002 ``Technology'' according to the General Technology Note for
the ``production'' of ``equipment'' controlled by ECCN 9A001.b,
9A004 or 9B (except for ECCNs 9B117, 9B604, 9B610, 9B619, 9B990, and
9B991).

License Requirements

Reason for Control: * * *

                                              Country chart  (See Supp.
                Control(s)                       No. 1 to part 738)

                                * * * * *
MT applies to ``technology'' for equipment  MT Column 1
 controlled by 9B001, 9B002, 9B003, 9B004,
 9B005, 9B007, 9B104, 9B105, 9B106, 9B115
 or 9B116 for MT reasons.

                                * * * * *

* * * * *

0
20. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9E101 is amended by revising the heading to read as
follows:

9E101 ``Technology'' according to the General Technology Note for
the ``development'' or ``production'' of commodities or ``software''
controlled by ECCN 9A012 (applies only to ``production''
``technology'' for MT-controlled items in 9A012), 9A101 (except for
items in 9A101.b that are ``subject to the ITAR,'' see 22 CFR part
121), 9A106.d or .e, 9A110 (for items that are ``specially
designed'' for non-military unmanned aerial vehicles controlled by
9A012), 9C110, 9D101, or 9D104.
* * * * *

0
21. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9E102 is amended by revising the heading to read as
follows:

9E102 ``Technology'' according to the General Technology Note for
the ``use'' of commodities or ``software'' controlled by ECCN 9A004
(except for items in 9A004 that are ``subject to the ITAR,'' see 22
CFR part 121), 9A012, 9A101 (except for items in 9A101.b that are
``subject to the ITAR,'' see 22 CFR part 121), 9A106.d or .e, 9A110
(for items that are ``specially designed'' for non-military unmanned
aerial vehicles controlled by 9A012), 9B105, 9B106, 9B115, 9B116,
9D101, or 9D104.
* * * * *

    Dated: July 3, 2017.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2017-14312 Filed 7-6-17; 8:45 am]
 BILLING CODE 3510-33-P


[Federal Register Volume 83, Number 234 (Thursday, December 6, 2018)]
[Notices]
[Pages 62844-62845]
[FR Doc No: 2018-26499]

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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket No. USCG-2018-0875]

Merchant Mariner Medical Advisory Committee; Vacancies

AGENCY: U.S. Coast Guard, Department of Homeland Security.

ACTION: Request for applications.

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

SUMMARY: The U.S. Coast Guard seeks applications for membership on the
Merchant Mariner Medical Advisory Committee. The Committee provides
advice and recommendations to the Secretary on matters related to
medical certification determinations for issuance of licenses,
certificates of registry, and merchant mariners' documents; medical
standards and guidelines for the physical qualifications of operators
of commercial vessels; medical examiner education; and medical
research.

DATES: Completed applications should be submitted to the U.S. Coast
Guard on or before February 4, 2019.

ADDRESSES: Applicants should send a cover letter expressing interest in
an appointment to the Merchant Mariner Medical Advisory Committee that
identifies the applicant's preferred membership, along with a resume
detailing the applicant's experience by one of the following methods:
     By Email: [email protected], (preferred) Subject
line: The Merchant Mariner Medical Advisory Committee;
     By Fax:<PHONE_NUMBER> ATTN: Mr. Davis J. Breyer, Alternate
Designated Federal Officer; or
     By Mail: Mr. Davis J. Breyer, Alternate Designated Federal
Officer of the Merchant Mariner Medical Advisory Committee, Commandant,
(CG-MMC-2)/MEDMAC, U.S. Coast Guard, 2703 Martin Luther King Jr. Ave
SE, Stop 7509, Washington, DC, 20593-7509.

FOR FURTHER INFORMATION CONTACT: Mr. Davis J. Breyer, Alternate
Designated Federal Officer of the Merchant Mariner Medical Advisory
Committee, Commandant, (CG-MMC-2)/MEDMAC, U.S. Coast Guard, 2703 Martin
Luther King Jr. Ave SE, Stop 7509, Washington, DC, 20593-7509,
telephone<PHONE_NUMBER>, fax<PHONE_NUMBER> or [email protected].

SUPPLEMENTARY INFORMATION: The Merchant Mariner Medical Advisory
Committee is a federal advisory committee established in accordance
with the provisions of the Federal Advisory Committee Act (Title 5
U.S.C. Appendix) and 46 U.S.C. 7115.
    The Committee meets at least twice each year. Its subcommittees and
working groups may hold additional meetings as needed to consider
specific tasks.
    Except for vacancy appointments, Committee members serve a term of
office of five years. Members may serve a maximum of two consecutive
terms. All members serve at their own expense and receive no salary or
other compensation from the Federal Government. Members may be
reimbursed for travel and per diem in accordance with Federal Travel
Regulations.
    We will consider applications for the following six positions that
will be vacant on April 18, 2019. Federal employees, in accordance with
46 U.S.C. 7115(b)(1), and registered lobbyists, as described below, are
not eligible for these positions.
    (1) Professional mariner membership positions. To be eligible, you
must have experience as a merchant mariner and have significant
knowledge and experience in the duties of the various positions aboard
ship and the nature of the environment in which these duties are
performed; and
    (2) Health-care professionals. To be eligible, you must have
particular expertise, knowledge, or experience

regarding the medical examinations of merchant mariners or occupational
medicine.
    Each member will be appointed and serve as a Special Government
Employee as defined in section 202(a) of Title 18, U.S.C. As a
candidate for appointment as a Special Government Employee, applicants
are required to complete a new entrant Confidential Financial
Disclosure Reports (OGE Form 450). The U.S. Coast Guard may not release
the reports or the information in them to the public except under an
order issued by a Federal court or as otherwise provided under the
Privacy Act (5 U.S.C. 552a). Only the Designated U.S. Coast Guard
Ethics Official or his or her designee may release a Confidential
Financial Disclosure Report. Applicants can obtain this form by going
to the website of the Office of Government Ethics (www.oge.gov), or by
contacting the individual listed above in FOR FURTHER INFORMATION
CONTACT. All applications must be accompanied by a completed OGE Form
450.
    Registered lobbyists are not eligible to serve on Federal Advisory
Committees in an individual capacity. See ``Revised Guidance on
Appointment of Lobbyist to Federal Advisory Committees, Boards and
Commissions'' (79 FR 47482, August 13, 2014). The positions we listed
above will be someone appointed in their individual capacity and would
be designated a Special Government Employee as defined in 202 (a) of
Title 18, United States Code. Registered lobbyists are lobbyists as
defined in Title 2 U.S.C. 1602 who are required by Title 2 U.S.C. 1603
to register with the Secretary of the Senate and the Clerk of the House
of Representatives.
    The Department of Homeland Security does not discriminate in
selection of Committee members on the basis of race, color, religion,
sex, national origin, political affiliation, sexual orientation, gender
identity, marital status, disabilities and genetic information, age,
membership in an employee organization, or any other non-merit factor.
The Department of Homeland Security strives to achieve a widely diverse
candidate pool for all of its recruitment actions.
    If you are interested in applying to become a member of the
Committee, send your cover letter and resume, and be prepared to
complete a OGE Form 450, as instructed, to Mr. Davis J. Breyer,
Alternate Designated Federal Officer of the Merchant Mariner Medical
Advisory Committee via one of the transmittal methods in the ADDRESSES
section by the deadline in the DATES section of this notice.
    All email submittals will receive email receipt confirmations.

    Dated: November 30, 2018.
Benjamin J. Hawkins,
Deputy Director of Commercial Regulations and Standards.
[FR Doc. 2018-26499 Filed 12-4-18; 8:45 am]
 BILLING CODE 9110-04-P


[Federal Register Volume 83, Number 102 (Friday, May 25, 2018)]
[Notices]
[Pages 24372-24376]
[FR Doc No: 2018-11222]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83292; File No. SR-CBOE-2018-040]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 5.3, Criteria for Underlying Securities

May 21, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 7, 2018, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Rule 5.3, Interpretation and Policy
.01.
(additions are italicized; deletions are [bracketed])
* * * * *

Cboe Exchange, Inc.

Rules

* * * * *

Rule 5.3. Criteria for Underlying Securities

    (a)-(b) (No change).
    . . . Interpretations and Policies:
    .01 The Board of Directors has established guidelines to be
considered by the Exchange in evaluating potential underlying
securities for Exchange option transactions. Absent exceptional
circumstances with respect to Paragraphs (a)(1) or (2), or (b)(1) or
(2) listed below, at the time the Exchange selects an underlying
security for Exchange option transactions, the following guidelines
with respect to the issuer shall be met.
    (a) (No change).
    (b) Guidelines applicable to the market for the security are:
    (1) (No change).
    (2)
    (A) If the underlying security is a ``covered security'' as defined
under Section 18(b)(1)(A) of the Securities Act of 1933, the market
price per share of the underlying security has been at least $3.00 for
the previous [five]three consecutive business days preceding the date
on which the Exchange submits a certificate to the Options Clearing
Corporation for listing and trading. For purposes of this
Interpretation .01(b)(2)(A), the market price of such underlying
security is measured by the closing price reported in the primary
market in which the underlying security is traded.
    (B) (No change).
    (c) (No change).
    .02-.13 (No change).
* * * * *
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Interpretation and Policy .01 of
Rule 5.3, Criteria for Underlying Securities, to modify the criteria
for listing options on an underlying security as defined in Section
18(b)(1)(A) of the Securities Act of 1933 (hereinafter ``covered
security'' or ``covered securities''). This is a competitive filing
that is based on a proposal recently submitted by Nasdaq PHLX LLC
(``Nasdaq Phlx'') and approved by the Commission.\5\
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    \5\ See Securities Exchange Act Release No. 82474 (January 9,
2018), 83 FR 2240 (January 16, 2018) (order approving SR-Phlx-2017-
75); see also Securities Exchange Act Release No. 82828 (March 8,
2018), 83 FR 11278 (March 14, 2018) (notice of filing and immediate
effectiveness of SR-MIAX-2018-06).
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    In particular, the Exchange proposes to modify Rule 5.3,
Interpretation and Policy .01(b)(2)(A) to permit the listing of an
option on an underlying covered security that has a market price of at
least $3.00 per share for the previous three (3) consecutive business
days preceding the date on which the Exchange submits a certificate to
the Options Clearing Corporation (``OCC'') for listing and trading. The
Exchange does not intend to amend any other criteria for listing
options on an underlying security in Rule 5.3.
    Currently the underlying covered security must have a closing
market price of $3.00 per share for the previous five (5) consecutive
business days preceding the date on which the Exchange submits a
listing certificate to OCC. In the proposed amendment, the market price
will still be measured by the closing price reported in the primary
market in which the underlying covered security is traded, but the
measurement will be the price over the prior three (3) consecutive
business day period preceding the submission of the listing certificate
to OCC, instead of the prior five (5) business day period.
    The Exchange acknowledges that the Options Listing Procedures Plan
\6\ requires that the listing certificate be provided to OCC no earlier
than 12:01 a.m. and no later than 11:00 a.m. (Chicago time) on the
trading day prior to the day on which trading is to begin.\7\ The
proposed amendment will still comport with that requirement. For
example, if an initial public offering (``IPO'') occurs at 11:00 a.m.
on Monday, the earliest date the Exchange could submit its listing
certificate to OCC would be on Thursday by 12:01 a.m. (Chicago time),
with the market price determined by the closing price over the three-
day period from Monday through Wednesday. The option on the IPO would
then be eligible for trading on the Exchange on Friday. The proposed
amendment would essentially enable options trading within four (4)
business days of an IPO becoming available instead of six (6) business
days (five (5) consecutive days plus the day the listing certificate is
submitted to OCC).
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    \6\ The Plan for the Purpose of Developing and Implementing
Procedures Designed to Facilitate the Listing and Trading of
Standardized Options Submitted Pursuant to Section 11a(2)(3)(B) of
the Securities Exchange Act of 1934 (a/k/a the Options Listing
Procedures Plan (``OLPP'')) is a national market system plan that,
among other things, sets forth procedures governing the listing of
new options series. See Securities Exchange Act Release No. 44521
(July 6, 2001), 66 FR 36809 (July 13, 2001) (Order approving OLPP).
The sponsors of OLPP include OCC; Cboe BZX Exchange, Inc. (formerly
BATS Exchange, Inc.); BOX Options Exchange LLC; Cboe C2 Exchange,
Inc. (formerly C2 Options Exchange, Incorporated); Cboe Exchange,
Inc. (formerly Chicago Board Options Exchange, Incorporated); Cboe
EDGX Exchange, Inc. (formerly EDGX Exchange, Inc.); Miami
International Securities Exchange, LLC; MIAX PEARL, LLC; The Nasdaq
Stock Market LLC; NASDAQ BX, Inc.; Nasdaq PHLX LLC; Nasdaq GEMX,
LLC; Nasdaq ISE, LLC; Nasdaq MRX, LLC; NYSE American, LLC; and NYSE
Arca, Inc.
    \7\ See OLPP at page 3.
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    The Exchange's initial listing standards for equity options in Rule
5.3 (including the current price/time standard of $3.00 per share for
five (5) consecutive business days) are substantially similar to the
initial listing standards adopted by other options exchanges.\8\ At the
time the options industry adopted the ``look back'' period of five
consecutive business days, it was determined that the five-day period
was sufficient to protect against attempts to manipulate the market
price of the underlying security and would provide a reliable test for
stability.\9\ Surveillance technologies and procedures concerning
manipulation have evolved since then to provide adequate prevention or
detection of rule or securities law violations within the proposed time
frame.
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    \8\ See, e.g., Phlx Rule 1009, Commentary .01; see also MIAX
Rule 402(b)(5) and BOX Rule 5020(b)(5).
    \9\ See Securities Exchange Act Release Nos. 47190 (January 15,
2003), 68 FR 3072 (January 22, 2003) (SR-CBOE-2002-62); 47352
(February 11, 2003), 68 FR 8319 (February 20, 2003) (SR-PCX-2003-
06); 47483 (March 11, 2003), 68 FR 13352 (March 19,2003) (SR-ISE-
2003-04); 47613 (April 1, 2003), 68 FR 17120 (April 8, 2003) (SR-
Amex-2003-19); and 47794 (May 5, 2003), 68 FR 25076 (May 9, 2003)
(SR-Phlx-2003-27).
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    The Exchange notes that the proposed listing criteria would still
require that the underlying security be listed on NYSE, the American
Stock Exchange (now known as NYSE American), or the National Market
System of The Nasdaq Stock Market (now known as the Nasdaq Global
Market), or listed on a national securities exchange that has listing
standards the Commission determines by rule are substantially similar
to the listing standards applicable to securities listed the exchanges
noted in the previous clause (collectively, the ``Designated
Markets''), as provided for in the definition of ``covered security''
from Section 18(b)(1) of the 1933 Act. Accordingly, the Exchange
believes that the proposed rule change would still ensure that the
underlying security meets the high listing standards of a Designated
Market, and would also ensure that the underlying is covered by the
regulatory protections (including market surveillance, investigation
and enforcement) offered by these exchanges for trading in covered
securities conducted on their facilities.
    Furthermore, the Nasdaq, Nasdaq Phlx's affiliated listing market,
had no cases within the past five years where an IPO-related issue for
which it had pricing information qualified for the $3.00 price
requirement during the first three (3) days of trading and did not
qualify for the $3.00 price requirement during the first five (5)
days.\10\ In other words, none of these qualifying issues fell below
the $3.00 threshold within the first three (3) or five (5) days of
trading. As such, the Exchange believes that its existing surveillance
technologies and procedures, coupled with Nasdaq's findings related to
the IPO-related issues as described herein, adequately address
potential concerns regarding possible manipulation or price stability
within the proposed timeframe.
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    \10\ There were over 750 IPO-related issues on Nasdaq within the
past five years. Out of all of the issues with pricing information,
there was only one issue that had a price below $3 during the first
five consecutive business days. The Exchange notes, however, that
Nasdaq allows for companies to list on the Nasdaq Capital Market at
$2.00 or $3.00 per share in some instances, which was the case for
this particular issue. See Nasdaq Rule 5500 Series for initial
listing standards on the Nasdaq Capital Market; see also Release No.
82474 in supra note 5.
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    Additionally, the Exchange represents that its existing trading
surveillances are adequate to monitor the trading of options on the
Exchange.\11\ Cboe Options and C2, either themselves or through FINRA,
utilize an array of patterns that monitor manipulation of

options, or manipulation of equity securities (regardless of venue) for
the purpose of impacting options prices on both Cboe Options and C2
options markets (i.e., mini-manipulation strategies). Accordingly, the
Exchange believes that the cross-market surveillance performed by the
Designated Markets, coupled with the Exchange staff's monitoring of
similarly violative activity on Cboe Options and C2 as described
herein, reflects a comprehensive surveillance program that is adequate
to monitor for manipulation of the underlying security within the
proposed three-day look back period. The Exchange notes certain of its
affiliated exchanges, Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc.,
Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc., list stock for
trading and have surveillance programs in place that include cross-
market surveillance for trading not just limited to those exchanges.
The cross-market patters (sic) in those surveillance programs
incorporate relevant data from various markets beyond the Exchange and
its affiliates, including NYSE and Nasdaq.
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    \11\ Such surveillance procedures generally focus on detecting
securities trading subject to price manipulation, layering, spoofing
or other unlawful activity impacting an underlying security, the
option, or both. The Exchange and its affiliate C2, themselves or
through the Financial Industry Regulatory Authority (``FINRA''),
have price movement alerts, unusual market activity and order book
alerts active for all trading symbols.
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    The Exchange also believes that the proposed look back period can
be implemented in connection with the other initial listing criteria
for underlying covered securities. In particular, the Exchange
recognizes that it may be difficult to verify the number of
shareholders in the days immediately following an IPO due to the fact
that stock trades generally clear within two business days (T+2) of
their trade date and therefore the shareholder count will generally not
be known until T+2.\12\ The Exchange notes that the current T+2
settlement cycle was recently reduced from T+3 on September 5, 2017 in
connection with the Commission's amendments to Rule 15c6-1(a) to adopt
the shortened settlement cycle,\13\ and the look back period of three
(3) consecutive business days proposed herein reflects this shortened
T+2 settlement period. As proposed, stock trades would clear within T+2
of their trade date (i.e., within three (3) business days) and
therefore the number of shareholders could be verified within three (3)
business days, thereby enabling options trading within four (4)
business days of an IPO (three (3) consecutive business days plus the
day the listing certificate is submitted to OCC).
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    \12\ The number of shareholders of record can be validated by
large clearing agencies such as T+2).
    \13\ See Securities Exchange Act Release No. 78962 (September
28, 2016), 81 FR 69240 (October 5, 2016) (Amendment to Securities
Transaction Settlement Cycle) (File No. S7-22-16).
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    Furthermore, the Exchange notes that it can verify the shareholder
count with various brokerage firms that have a large retail customer
clientele. Such firms can confirm the number of individual customers
who have a position in the new issue. The earliest that these firms can
provide confirmation is usually the day after the first day of trading
(T+1) on an unsettled basis, while others can confirm on the third day
of trading (T+2). The Exchange has confirmed with some of these
brokerage firms who provide shareholder numbers to the Exchange that
they are T+2 after an IPO. For the foregoing reasons, the Exchange
believes that basing the proposed three (3) business day look back
period on the T+2 settlement cycle would allow for sufficient
verification of the number of shareholders.
    The proposed rule change will apply to all covered securities that
meet the criteria of Rule 5.3. Pursuant to Rule 5.3, the Exchange
establishes guidelines to be considered in evaluating the potential
underlying securities for Exchange option transactions.\14\ However,
the fact that a particular security may meet the guidelines established
by the Exchange does not necessarily mean that it will be approved as
an underlying security.\15\ As part of the established criteria, the
issuer must be in compliance with any applicable requirement of the
Securities Exchange Act of 1934.\16\ Additionally, in considering the
underlying security, the Exchange relies on information made publicly
available by the issuer and/or the markets in which the security is
traded.\17\ Even if the proposed option meets the objective criteria,
the Exchange may decide not to list, or place limitations or conditions
upon listing.\18\ The Exchange believes that these measures, together
with existing surveillance procedures, provide adequate safeguards in
the review of any covered security that may meet the proposed criteria
for consideration of the option within the timeframe contained in this
proposal.
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    \14\ See Rule 5.3 (b) and Interpretation and Policy .01. The
Exchange established specific criteria to be considered in
evaluating potential underlying securities for Exchange option
transactions.
    \15\ See Rule 5.3(b).
    \16\ See Rule 5.3, Interpretation and Policy .01(a)(3).
    \17\ See Rule 5.3, Interpretation and Policy .02.
    \18\ See Rule 5.3, Interpretation and Policy .09.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\19\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \20\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \21\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(5).
    \21\ Id.
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    The Exchange believes that the proposed changes to its listing
standards for covered securities would allow the Exchange to more
quickly list options on a qualifying covered security that has met the
$3.00 eligibility price without sacrificing investor protection. As
discussed above, the Exchange believes that its existing surveillance
procedures provide a sufficient measure of protection against potential
price manipulation within the proposed three (3) consecutive business
day timeframe. The Exchange also believes that the proposed three (3)
consecutive business day timeframe would continue to be a reliable test
for price stability in light of Nasdaq's findings that none of the IPO-
related issues on Nasdaq within the past five years that qualified for
the $3.00 per share price standard during the first three trading days
fell below the $3.00 threshold during the fourth or fifth trading day.
Furthermore, the established guidelines to be considered by the
Exchange in evaluating the potential underlying securities for Exchange
option transactions,\22\ together with existing trading surveillances,
provide adequate safeguards in the review of any covered security that
may meet the proposed criteria for consideration of the option within
the proposed timeframe.
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    \22\ See supra notes 14-18.
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    In addition, the Exchange believes that basing the proposed
timeframe on the T+2 settlement cycle adequately addresses the
potential difficulties in confirming the number of shareholders of the
underlying covered security.

Having some of the largest brokerage firms that provide these
shareholder counts to the Exchange confirm that they are able to
provide these numbers within T+2 further demonstrates that the 2,000
shareholder requirement can be sufficiently verified within the
proposed timeframe. For the foregoing reasons, the Exchange believes
that the proposed amendments will remove and perfect the mechanism of a
free and open market and a national market system by providing an
avenue for investors to swiftly hedge their investment in the stock in
a shorter amount of time than what is currently in place.\23\
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    \23\ This proposed rule change does not alter any obligations of
issuers or other investors of an IPO that may be subject to a lock-
up or other restrictions on trading related securities.
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    Finally, it should be noted that a price/time standard for the
underlying security was first adopted when the listed options market
was in its infancy, and was intended to prevent the proliferation of
options being listed on low-priced securities that presented special
manipulation concerns and/or lacked liquidity needed to maintain fair
and orderly markets.\24\ When options trading commenced in 1973, the
Commission determined that it was necessary for securities underlying
options to meet certain minimum standards regarding both the quality of
the issuer and the quality of the market for a particular security.\25\
These standards, including a price/time standard, were imposed to
ensure that those issuers upon whose securities options were to be
traded were widely-held, financially sound companies whose shares had
trading volume and float substantial enough so as not to be readily
susceptible to manipulation.\26\ At the time, the Commission determined
that the imposition of these standards was reasonable in view of the
pilot nature of options trading and the limited experience of investors
with options trading.\27\
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    \24\ See Securities Exchange Act Release No. 29628 (August 29,
1991), 56 FR 43949-01 (September 5, 1991) (SR-AMEX-86-21; SR-CBOE-
86-15; SR-NYSE-86-20; SR-PSE-86-15; and SR-PHLX-86-21) (``1991
Approval Order'') at 43949 (discussing the Commission's concerns
when options trading initially commenced in 1973).
    \25\ See 1991 Approval Order at 43949.
    \26\ Id.
    \27\ Id.
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    Now more than 40 years later, the listed options market has evolved
into a mature market with sophisticated investors. In view of this
evolution, the Commission has approved various exchange proposals to
relax some of these initial listing standards throughout the years,\28\
including reducing the price/time standard in 2003 from $7.50 per share
for the majority of business days over a three month period to the
current $3.00 per share/five business day standard (``2003
Proposal'').\29\ It has been almost fifteen years since the Commission
approved the 2003 proposal, and both the listed options market and
exchange technologies have continued to evolve since then. In this
instance, Cboe Options is only proposing a modest reduction of the
current five (5) business day standard to three (3) business days to
correspond to the securities industry's move to a T+2 standard
settlement cycle.\30\ The $3.00 per share standard and all other
initial options listing criteria in Rule 5.3 will remain unchanged by
this proposal. For the reasons discussed herein, the Exchange therefore
believes that the proposed three (3) business day period will be
beneficial to the marketplace without sacrificing investor protections.
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    \28\ See, e.g., 1991 Approval Order (modifying a number of
initial listing criteria, including the reduction of the price/time
standard from $10 per share each day during the preceding three
calendar months to $7.50 per share for the majority of days during
the same period).
    \29\ See Securities Exchange Act Release Nos. 47190 (January 15,
2003), 68 FR 3072 (January 22, 2003) (SR-CBOE-2002-62); 47352
(February 11, 2003), 68 FR 8319 (February 20, 2003) (SR-PCX-2003-
06); 47483 (March 11, 2003), 68 FR 13352 (March 19, 2003) (SR-ISE-
2003-04); 47613 (April 1, 2003), 68 FR 17120 (April 8, 2003) (SR-
Amex-2003-19); and 47794 (May 5, 2003), 68 FR 25076 (May 9, 2003)
(SR-Phlx\2003-27).
    \30\ See supra note 13.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Cboe Options does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. In this regard and as
indicated above, the Exchange notes that the rule change is being
proposed as a competitive response to a filing submitted by Nasdaq Phlx
that was recently approved by the Commission.\31\ The proposed rule
change will reduce the number of days to list options on an underlying
security, and is intended to bring new options listings to the
marketplace quicker.
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    \31\ See supra note 5.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) \32\ of the Act and Rule 19b-
4(f)(6) thereunder.\33\
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    \32\ 15 U.S.C. 78s(b)(3)(A).
    \33\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and the text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \34\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \35\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. As discussed
above, the Exchange notes that its proposal is consistent with rules of
other exchanges.\36\ Because the proposal does not raise any new or
novel issues, the Commission believes that waiver of the operative
delay is consistent with the protection of investors and the public
interest. Therefore, the Commission hereby waives the operative delay
and designates the proposal operative upon filing.\37\
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    \34\ 17 CFR 240.19b-4(f)(6).
    \35\ 17 CFR 240.19b-4(f)(6)(iii).
    \36\ See supra note 6 and accompanying text.
    \37\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-CBOE-2018-040 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2018-040. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2018-040 and should be submitted on
or before June 15, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\38\
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    \38\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-11222 Filed 5-24-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: March 18, 2010 (Volume 75, Number 52)]
[Notices]
[Page 13146]
[DOCID:fr18mr10-103]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.

Extension:
    Rule 17Ad-10; SEC File No. 270-265; OMB Control No. 3235-0273.

    Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in Rule 17Ad-10, (17 CFR
240.17Ad-10), under the Securities Exchange Act of 1934 (15 U.S.C. 78a
et seq.). The Commission plans to submit this existing collection of
information to the Office of Management and Budget for extension and
approval.
    Rule 17Ad-10 requires registered transfer agents to create and
maintain minimum information on securityholders' ownership of an issue
of securities for which it performs transfer agent functions, including
the purchase, transfer and redemptions of securities. In addition, the
rule also requires transfer agents that maintain securityholder records
to retain a record of all certificate detail that has been deleted from
those records for a minimum of six years from the date of deletion and
to maintain and keep current an accurate record of the number of shares
or principle dollar amount of debt securities that the issuer has
authorized to be outstanding (a ``control book''). These recordkeeping
requirements assist in the creation and maintenance of accurate
securityholder records, the ability to research errors, and ensure the
transfer agent is aware of the number of securities that are properly
authorized by the issuer, thereby avoiding over issuance.
    There are approximately 565 registered transfer agents. The staff
estimates that the average number of hours necessary for each transfer
agent to comply with Rule 17Ad-10 is approximately 20 hours per year,
totaling 11,300 hours industry-wide. The average cost per hour is
approximately $50 per hour, with the industry-wide cost estimated at
approximately $565,000. However, the information required by Rule 17Ad-
10 generally already is maintained by registered transfer agents. The
amount of time devoted to compliance with Rule 17Ad-10 varies according
to differences in business activity.
    Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
estimates of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within 60 days of this publication.
    Please direct your written comments to: Charles Boucher, Director/
Chief Information Officer, Securities and Exchange Commission, Shirley
Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send
an e-mail to<EMAIL_ADDRESS>
    Dated: March 11, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-5947 Filed 3-17-10; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 167 (Wednesday, September 1, 2021)]
[Notices]
[Pages 49089-49090]
[FR Doc No: 2021-18861]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket Number FRA-2011-0038]

Petition for Extension of Waiver of Compliance

    Under part 211 of title 49 Code of Federal Regulations (CFR), this
document provides the public notice that on February 1, 2021, Penn
Valley Railroad, LLC (PVRR) petitioned the Federal Railroad
Administration (FRA) for an extension of a special approval/waiver of
compliance from certain provisions of the Federal railroad safety
regulations contained at 49 CFR part

215, Railroad Freight Car Safety Standards. The relevant FRA Docket
Number is FRA-2011-0038.
    Specifically, PVRR requests relief from 49 CFR 215.203, Restricted
cars, for one caboose (PRR 478044) that is more than 50 years of age
from the date of original construction. PVRR also requests relief from
49 CFR 215.303, Stenciling of restricted cars, to retain the caboose's
historical accuracy. In support of its petition, PVRR states that no
accidents, incidents, or injuries to railroad personnel have occurred
since the waiver/special approval was granted.
    A copy of the petition, as well as any written communications
concerning the petition, is available for review online at
www.regulations.gov.
    Interested parties are invited to participate in these proceedings
by submitting written views, data, or comments. FRA does not anticipate
scheduling a public hearing in connection with these proceedings since
the facts do not appear to warrant a hearing. If any interested party
desires an opportunity for oral comment and a public hearing, they
should notify FRA, in writing, before the end of the comment period and
specify the basis for their request.
    All communications concerning these proceedings should identify the
appropriate docket number and may be submitted at http://www.regulations.gov. Follow the online instructions for submitting
comments.
    Communications received by October 18, 2021 will be considered by
FRA before final action is taken. Comments received after that date
will be considered if practicable. Anyone can search the electronic
form of any written communications and comments received into any of
our dockets by the name of the individual submitting the comment (or
signing the document, if submitted on behalf of an association,
business, labor union, etc.). Under 5 U.S.C. 553(c), the U.S.
Department of Transportation (DOT) solicits comments from the public to
better inform its processes. DOT posts these comments, without edit,
including any personal information the commenter provides, to
www.regulations.gov, as described in the system of records notice (DOT/
ALL-14 FDMS), which can be reviewed at https://www.transportation.gov/privacy. See also https://www.regulations.gov/privacy-notice for the
privacy notice of regulations.gov.

    Issued in Washington, DC.
John Karl Alexy,
Associate Administrator for Railroad Safety, Chief Safety Officer.
[FR Doc. 2021-18861 Filed 8-31-21; 8:45 am]
BILLING CODE 4910-06-P