Federal Register / Vol. 76, No. 211 / Tuesday, November 1, 2011 / Rules and Regulations 67361 

(ii) New activities may be exempted 

from the prohibitions in paragraphs 

(a)(2) through (8) of this section by the 

Director after consultation between the 

Director and the Department of Defense. 

If it is determined that an activity may 

be carried out such activity shall be 

carried out in a manner that avoids to 

the maximum extent practicable any 

adverse impact on Sanctuary resources 

and qualities. Civil engineering and 

other civil works projects conducted by 

the U.S. Army Corps of Engineers are 

excluded from the scope of this 

paragraph (d). 

(2) The Department of Defense is 

prohibited from conducting bombing 

activities within the Sanctuary. 

(3) In the event of threatened or actual 

destruction of, loss of, or injury to a 

Sanctuary resource or quality resulting 

from an untoward incident, including 

but not limited to spills and groundings 

caused by the Department of Defense, 

the Department of Defense shall 

promptly coordinate with the Director 

for the purpose of taking appropriate 

actions to respond to and mitigate the 

harm and, if possible, restore or replace 

the Sanctuary resource or quality. 

(e) The prohibitions in paragraphs 

(a)(2) through (8) of this section do not 

apply to any activity executed in 

accordance with the scope, purpose, 

terms and conditions of a National 

Marine Sanctuary permit issued 

pursuant to §§ 922.48 and 922.153 or a 

Special Use permit issued pursuant to 

section 310 of the Act. 

(f) Members of a federally recognized 

Indian tribe may exercise aboriginal and 

treaty-secured rights, subject to the 

requirements of other applicable law, 

without regard to the requirements of 

this part. The Director may consult with 

the governing body of a tribe regarding 

ways the tribe may exercise such rights 

consistent with the purposes of the 

Sanctuary. 

(g) The prohibitions in paragraphs 

(a)(2) through (8) of this section do not 

apply to any activity authorized by any 

lease, permit, license, or other 

authorization issued after July 22, 1994, 

and issued by any Federal, State or local 

authority of competent jurisdiction, 

provided that the applicant complies 

with § 922.49, the Director notifies the 

applicant and authorizing agency that 

he or she does not object to issuance of 

the authorization, and the applicant 

complies with any terms and conditions 

the Director deems necessary to protect 

Sanctuary resources and qualities. 

Amendments, renewals and extensions 

of authorizations in existence on the 

effective date of designation constitute 

authorizations issued after the effective 

date. 

(h) Notwithstanding paragraphs (e) 

and (g) of this section, in no event may 

the Director issue a National Marine 

Sanctuary permit under §§ 922.48 and 

922.153 or a Special Use permit under 

section 310 of the Act authorizing, or 

otherwise approve: The exploration for, 

development or production of oil, gas or 

minerals within the Sanctuary; the 

discharge of primary-treated sewage 

within the Sanctuary; the disposal of 

dredged material within the Sanctuary 

other than in connection with beach 

nourishment projects related to the 

Quillayute River Navigation Project; or 

bombing activities within the Sanctuary. 

Any purported authorizations issued by 

other authorities after July 22, 1994 for 

any of these activities within the 

Sanctuary shall be invalid. 

■ 5. Section 922.153 is revised to read 

as follows: 

§ 922.153 Permit procedures and criteria. 

(a) A person may conduct an activity 

prohibited by § 922.152(a)(2) through (8) 

if conducted in accordance with the 

scope, purpose, terms and conditions of 

a permit issued under this section and 

§ 922.48. 

(b) Applications for such permits 

should be addressed to the Director, 

Office of National Marine Sanctuaries; 

Attn: Superintendent, Olympic Coast 

National Marine Sanctuary, 115 East 

Railroad Avenue, Suite 301, Port 

Angeles, WA 98362–2925. 

(c) The Director, at his or her 

discretion, may issue a permit, subject 

to such terms and conditions as he or 

she deems appropriate, to conduct an 

activity prohibited by § 922.152(a)(2) 

through (8), if the Director finds that the 

activity will not substantially injure 

Sanctuary resources and qualities and 

will: Further research related to 

Sanctuary resources and qualities; 

further the educational, natural or 

historical resource value of the 

Sanctuary; further salvage or recovery 

operations in or near the Sanctuary in 

connection with a recent air or marine 

casualty; assist in managing the 

Sanctuary; further salvage or recovery 

operations in connections with an 

abandoned shipwreck in the Sanctuary 

title to which is held by the State of 

Washington; or be issued to an 

American Indian tribe adjacent to the 

Sanctuary, and/or its designee as 

certified by the governing body of the 

tribe, to promote or enhance tribal selfdetermination, tribal government 

functions, the exercise of treaty rights, 

the economic development of the tribe, 

subsistence, ceremonial and spiritual 

activities, or the education or training of 

tribal members. For the purpose of this 

part, American Indian tribes adjacent to 

the sanctuary mean the Hoh, Makah, 

and Quileute Indian Tribes and the 

Quinault Indian Nation. In deciding 

whether to issue a permit, the Director 

may consider such factors as: The 

professional qualifications and financial 

ability of the applicant as related to the 

proposed activity; the duration of the 

activity and the duration of its effects; 

the appropriateness of the methods and 

procedures proposed by the applicant 

for the conduct of the activity; the 

extent to which the conduct of the 

activity may diminish or enhance 

Sanctuary resources and qualities; the 

cumulative effects of the activity; the 

end value of the activity; and the 

impacts of the activity on adjacent 

American Indian tribes. Where the 

issuance or denial of a permit is 

requested by the governing body of an 

American Indian tribe, the Director shall 

consider and protect the interests of the 

tribe to the fullest extent practicable in 

keeping with the purposes of the 

Sanctuary and his or her fiduciary 

duties to the tribe. The Director may 

also deny a permit application pursuant 

to this section, in whole or in part, if it 

is determined that the permittee or 

applicant has acted in violation of the 

terms or conditions of a permit or of 

these regulations. In addition, the 

Director may consider such other factors 

as he or she deems appropriate. 

* * * * * 

[FR Doc. 2011–27947 Filed 10–31–11; 8:45 am] 

BILLING CODE 3510–NK–P 

DEPARTMENT OF STATE 

22 CFR Part 42 

[Public Notice 7391] 

RIN 1400–AC86 

Visas: Documentation of Immigrants 

Under the Immigration and Nationality 

Act, as Amended 

AGENCY: State Department. 

ACTION: Interim final rule. 

SUMMARY: This rule amends the 

Department of State’s regulations 

relating to adoptions in countries party 

to The Hague Convention on the 

Protection of Children and Co-operation 

in Respect of Intercountry Adoption, to 

include new adoption provisions from 

the International Adoption 

Simplification Act. This legislation 

provides for sibling adoption to include 

certain children who are under the age 

of 18 at the time the petition is filed on 

their behalf, and also certain children 

who attained the age of 18 on or after 

April 1, 2008 and who are the 

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67362 Federal Register / Vol. 76, No. 211 / Tuesday, November 1, 2011 / Rules and Regulations 

beneficiaries of a petition filed on or 

before November 30, 2012. 

DATES: 

Effective Date: This rule is effective 

November 1, 2011. 

Comment Date: The Department will 

accept comments from the public up to 

December 1, 2011. 

ADDRESSES: 

You may submit comments by any of 

the following methods: 

• Email: BeaumontTW@state.gov 

(Subject line must read IASA Sibling 

Reg.). 

• Mail: Chief, Legislation and 

Regulation Division, Visa Services— 

IASA Sibling Reg., 2401 E. Street, NW., 

Washington, DC 20520–30106. 

• ‘‘Persons with access to the Internet 

may view this notice and provide 

comments by going to the 

regulations.gov Web site at: http:// 

www.regulations.gov/index.cfm, and 

searching on the Public Notice number 

7391.’’ 

FOR FURTHER INFORMATION CONTACT: 

Taylor W. Beaumont, Legislation and 

Regulations Division, Visa Services, 

Department of State, 2401 E Street, NW., 

Room L–603D, Washington, DC 20520– 

0106, who may be reached at (202) 663– 

1202. 

SUPPLEMENTARY INFORMATION: 

Definitions 

As used in this public notice, the term 

‘‘Convention’’ means The Hague 

Convention on Protection of Children 

and Co-operation in Respect of 

Intercountry Adoption; the term 

‘‘Convention country’’ means a country 

that is a party to the Convention and 

with which the Convention is in force 

for the United States; and the term 

‘‘IASA’’ means the International 

Adoption Simplification Act, Public 

Law 111–287 (2010). 

Why is the Department promulgating 

this rule? 

On November 30, 2010, the President 

signed the IASA into law, modifying the 

Immigration and Nationality Act (INA) 

as regards adoptions from Convention 

countries. Among other changes, the 

IASA creates a new INA Section 

101(b)(1)(G)(iii) to allow U.S. citizens to 

file an immediate relative petition for a 

child younger than 18 from a 

Convention country, provided that child 

is the natural sibling of a child 

concurrently or already adopted or 

being brought to the United States for 

adoption under INA Sections 

101(b)(1)(E)(i), (F)(i), or (G)(i). To qualify 

as a child who is covered under INA 

Section 101(b)(1)(G)(iii), a child must be 

adopted abroad, or be coming to the 

United States for adoption, by the 

adoptive parent(s) or prospective 

adoptive parent(s) of his/her natural 

sibling. In addition, the child must be 

otherwise qualified as a Convention 

adoptee under INA Section 

101(b)(1)(G)(i), except that the child is 

under 18 years of age rather than under 

16 years of age, as is required for 

classification under INA Section 

101(b)(1)(G)(i). 

The IASA contains an exception at 

Section 4(b) necessitating a modification 

of the Department regulation contained 

in 22 CFR 42.24. Under that section, an 

alien who is older than 18 years of age 

nonetheless may be classified under 

INA Section 101(b)(1)(G)(iii) if he/she 

turned 18 years of age on or after April 

1, 2008 and his/her immediate relative 

petition is filed not later than November 

30, 2012. As currently written, the 

Department’s regulations pertaining to 

INA Section 101(b)(1)(G) cover 

exclusively those children whose 

adoptions will be governed by the 

Convention. Although aliens qualified 

under IASA Section 4(b) will be 

emigrating from a Convention country, 

the Convention only governs the 

adoption of children under the age of 

18. This rule is necessary to change 

Department regulations to cover aliens 

properly qualified under IASA Section 

4(b). 

Regulatory Findings 

Administrative Procedure Act 

The Department is publishing this 

rule as an interim final rule, and with 

an effective date less than 30 days from 

the date of publication, based on the 

‘‘good cause’’ exceptions set forth at 5 

U.S.C. 553(b) and 553(d)(3). Delaying 

implementation of this rule would be 

contrary to the public interest, due to 

the effect of recent legislation (the 

International Adoption Simplification 

Act). Because current Department 

regulations do not contemplate the 

adoption of children over the age of 18 

in countries party to The Hague 

Convention on Inter-Country Adoption, 

the lack of procedural certainty 

regarding 22 CFR 42.24 could forseeably 

cause undue confusion and delay for 

American citizens pursuing their rights 

to adopt as provided by the IASA. The 

Department will accept public 

comments for 30 days after publication. 

Regulatory Flexibility Act/Executive 

Order 13272: Small Business 

The Department of State has reviewed 

this regulation and certifies that this 

rule will not have a significant 

economic impact on a substantial 

number of small entities. The 

Department of State notes that this 

regulation, as it exclusively facilitates 

adoptions by U.S. citizens, will have its 

greatest effect on individuals and not 

small businesses. While American 

Adoption Service Providers (ASPs) are 

essential to intercountry adoptions in 

Convention countries, this regulation 

will have a negligible effect on these 

ASPs, as the Department of State 

anticipates that this regulation will 

allow very few adoptions that would not 

have already been possible in the 

absence of this regulation. 

The Unfunded Mandates Reform Act of 

1995 

Section 202 of the Unfunded 

Mandates Reform Act of 1995, Public 

Law 104–4, 109 Stat. 48, 2 U.S.C. 1532, 

generally requires agencies to prepare a 

statement before proposing any rule that 

may result in an annual expenditure of 

$100 million or more by State, local, or 

tribal governments, or by the private 

sector. This rule will not result in any 

such expenditure, nor will it 

significantly or uniquely affect small 

governments. 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 

This rule is not a major rule as 

defined by 5 U.S.C. 804, for purposes of 

congressional review of agency 

rulemaking under the Small Business 

Regulatory Enforcement Fairness Act of 

1996, Public Law 104–121. This rule 

will not result in an annual effect on the 

economy of $100 million or more; a 

major increase in costs or prices; or 

adverse effects on competition, 

employment, investment, productivity, 

innovation, or the ability of United 

States-based companies to compete with 

foreign-based companies in domestic 

and import markets. 

Executive Order 12866 

The Department is exempt from 

Executive Order 12866 except to the 

extent that it is promulgating 

regulations in conjunction with a 

domestic agency that are significant 

regulatory actions. The Department has 

reviewed this rule to ensure its 

consistency with the regulatory 

philosophy and principles set forth in 

Executive Order 12866. Consistent with 

Executive Order 12866, the Department 

does not consider the rule to be an 

economically significant action within 

the scope of section 3(f)(1) of the 

Executive Order since it is not likely to 

have an annual effect on the economy 

of $100 million or more or to adversely 

affect in a material way the economy, a 

sector of the economy, competition, 

jobs, the environment, public health or 

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Federal Register / Vol. 76, No. 211 / Tuesday, November 1, 2011 / Rules and Regulations 67363 

safety, or state, local or tribal 

governments or communities. 

Executive Order 13563 

The Department of State has 

considered this rule in light of 

Executive Order 13563, dated January 

18, 2011, and affirms that this regulation 

is consistent with the guidance therein. 

Executive Orders 12372 and 13132: 

Federalism 

This regulation will not have 

substantial direct effects on the States, 

on the relationship between the national 

government and the States, or the 

distribution of power and 

responsibilities among the various 

levels of government. Nor will the rule 

have federalism implications warranting 

the application of Executive Orders No. 

12372 and No. 13132. 

Executive Order 13175 

The Department of State has 

determined that this rulemaking will 

not have tribal implications, will not 

impose substantial direct compliance 

costs on Indian tribal governments, and 

will not pre-empt tribal law. 

Accordingly, the requirement of Section 

5 of Executive Order 13175 does not 

apply to this rulemaking. 

Paperwork Reduction Act 

This rule does not impose information 

collection requirements under the 

provisions of the Paperwork Reduction 

Act, 44 U.S.C., Chapter 35. 

List of Subjects in 22 CFR Part 42 

Immigration, Passports and Visas. 

Accordingly, for the reasons set forth 

in the preamble, 22 CFR part 42 is 

amended as follows: 

PART 42—[AMENDED] 

■ 1. The authority citation for part 42 

continues to read as follows: 

Authority: 8 U.S.C. 1104 and 1182; Pub. 

L. 105–277; Pub. L. 108–449; 112 Stat. 2681– 

795 through 2681–801; The Convention on 

Protection of Children and Co-operation in 

Respect of Intercountry Adoption (done at 

the Hague, May 29, 1993), S. Treaty Doc. 

105–51 (1998), 1870 U.N.T.S. 167 (Reg. No. 

31922 (1993)); The Intercountry Adoption 

Act of 2000, 42 U.S.C. 14901–14954, Pub. L. 

106–279. 

■ 2. Section 42.24 is amended by 

revising paragraph (a) and adding 

paragraph (n) to read as follows: 

§ 42.24 Adoption under the Hague 

Convention on Protection of Children and 

Co-operation in Respect of Intercountry 

Adoption and the Intercountry Adoption Act 

of 2000. 

(a) Except as described in paragraph 

(n), for purposes of this section, the 

definitions in 22 CFR 96.2 apply. 

* * * * * 

(n) Notwithstanding paragraphs (d) 

through (m) of this section, an alien 

described in paragraph (n)(1) of this 

section may qualify for visa status under 

INA section 101(b)(1)(G)(iii) without 

meeting the requirements set forth in 

paragraphs (d) through (m) of this 

section. 

(1) Per Section 4(b) of the Intercountry 

Adoption Simplification Act, Public 

Law 111–287 (IASA), an alien otherwise 

described in INA section 

101(b)(1)(G)(iii) who attained the age of 

18 on or after April 1, 2008 shall be 

deemed to meet the age requirement 

imposed by INA section 

101(b)(1)(G)(iii)(III), provided that a 

petition is filed for such child in 

accordance with DHS requirements not 

later than November 30, 2012. 

(2) For any alien described in 

paragraph (n)(1) of this section, the 

‘‘competent authority’’ referred to in 

INA section 101(b)(1)(G)(i)(V)(aa) is the 

passport issuing authority of the country 

of origin. 

Dated: October 21, 2011. 

Janice L. Jacobs, 

Assistant Secretary for Consular Affairs, 

Department of State. 

[FR Doc. 2011–28281 Filed 10–31–11; 8:45 am] 

BILLING CODE 4710–06–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 31 and 301 

[TD 9554] 

RIN 1545–BJ07 

Extending Religious and Family 

Member FICA and FUTA Exceptions to 

Disregarded Entities 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final and temporary 

regulations. 

SUMMARY: This document contains final 

and temporary regulations amending 26 

CFR parts 31 and 301. These regulations 

extend the exceptions from taxes under 

the Federal Insurance Contributions Act 

(‘‘FICA’’) and the Federal 

Unemployment Tax Act (‘‘FUTA’’) 

under sections 3121(b)(3) (concerning 

individuals who work for certain family 

members), 3127 (concerning members of 

religious faiths), and 3306(c)(5) 

(concerning persons employed by 

children and spouses and children 

under 21 employed by their parents) of 

the Internal Revenue Code (‘‘Code’’) to 

entities that are disregarded as separate 

from their owners for federal tax 

purposes. The temporary regulations 

also clarify the existing rule that the 

owners of disregarded entities, except 

for qualified subchapter S subsidiaries, 

are responsible for backup withholding 

and related information reporting 

requirements under section 3406. The 

text of the temporary regulations also 

serves as the text of the proposed 

regulations set forth in the notice of 

proposed rulemaking on this subject in 

the Proposed Rules section in this issue 

of the Federal Register. 

DATES: Effective Date: These regulations 

are effective on November 1, 2011. 

Applicability Date: For dates of 

applicability see §§ 31.3121(b)(3)–1T(e), 

31.3127–1T(d), 31.3306(c)(5)–1T(e), 

301.7701–2T(e)(5). 

FOR FURTHER INFORMATION CONTACT: 

Joseph Perera (202) 622–6040 (not a toll 

free call). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains final and 

temporary regulations amending the 

Employment Tax Regulations (26 CFR 

part 31) and the Procedure and 

Administration Regulations (26 CFR 

part 301) to extend the FICA and FUTA 

exceptions for family members and 

religious sect members to certain 

entities that are disregarded as separate 

from their owners for federal tax 

purposes under § 301.7701–2(c). Section 

301.7701–2(c)(2)(i) provides that 

generally, except as otherwise provided, 

a business entity that has a single owner 

and is not a corporation under 

§ 301.7701–2(b) is disregarded as an 

entity separate from its owner. Prior to 

2009, single-member entities 

disregarded as separate from their 

owners were generally disregarded for 

employment taxes and certain other 

requirements of law arising under 

subtitle C. An employer is generally 

defined as the person for whom an 

individual performs services as an 

employee. Sections 3401(d), 3121(d), 

and 3306(a). Prior to 2009, the owner of 

the disregarded entity was treated as the 

employer for purposes of employment 

tax liabilities and all other employment 

tax obligations related to wages paid to 

employees performing services for the 

disregarded entity. 

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