Federal Register / Vol. 74, No. 184 / Thursday, September 24, 2009 / Proposed Rules 48687 

enforceable in a court possessing 

equitable powers; 

(iv) The trustee of the trust does not 

have discretion to vary either the 

beneficiaries or the amounts payable to 

the beneficiaries. For purposes of this 

paragraph (i)(9)(iv), a trustee shall not 

be treated as having such discretion 

where the trustee has discretion to make 

payments of principal to the single 

section 509(a)(1) or (2) organization that 

is currently entitled to receive all of the 

trust’s income or where the trust 

instrument provides that the trustee 

may cease making income payments to 

a particular charitable beneficiary in the 

event of certain specific occurrences, 

such as the loss of exemption under 

section 501(c)(3) or classification under 

section 509(a)(1) or (2) by the 

beneficiary or the failure of the 

beneficiary to carry out its charitable 

purpose properly; and 

(v) None of the trustees would be 

disqualified persons within the meaning 

of section 4946(a) (other than 

foundation managers under section 

4946(a)(1)(B)) with respect to the trust if 

such trust were treated as a private 

foundation. 

(10) Foreign supported organizations. 

A supporting organization is not 

operated in connection with one or 

more supported organizations if it 

supports any supported organization 

organized outside of the United States. 

(11) Transition rules—(i) A Type III 

supporting organization in existence on 

the effective date of these regulations 

that met and continues to meet the 

requirements of Treas. Reg. § 1.509(a)– 

4(i)(3)(ii), as in effect prior to the date 

these regulations are published as final 

or temporary regulations, will be treated 

as meeting the requirements of 

paragraph (i)(4)(i) of this section until 

the first day of the organization’s first 

taxable year beginning after the date 

these regulations are published as final 

or temporary regulations. 

(ii) A Type III supporting organization 

in existence on the effective date of 

these regulations that met and continues 

to meet the requirements of Treas. Reg. 

§ 1.509(a)–4(i)(3)(iii), as in effect prior to 

the date these regulations are published 

as final or temporary regulations, will be 

treated as meeting the requirements of 

paragraph (i)(5)(i) of this section until 

the first day of its second taxable year 

beginning after the effective date of 

these regulations. Beginning in the first 

taxable year beginning after the effective 

date of these regulations, such 

organizations must value their assets 

according to paragraph (i)(8) of this 

section. Beginning in the second taxable 

year beginning after the effective date of 

these regulations (and in all succeeding 

taxable years), these organizations must 

meet all of the requirements of 

paragraph (i)(5)(i) of this section. 

(iii) For the first taxable year after the 

effective date of these regulations, the 

annual distributable amount for Type III 

supporting organizations that are not 

functionally integrated is zero. 

(12) Effective/applicability date. 

These regulations are effective on the 

date of publication of the Treasury 

decision adopting these rules as final or 

temporary regulations. 

* * * * * 

PART 53—FOUNDATION AND SIMILAR 

EXCISE TAXES 

Par. 3. The authority citation for part 

53 continues to read in part as follows: 

Authority: 26 U.S.C. 7805 * * * 

Par. 4. In § 53.4943–11, section 

heading is revised and paragraphs (f) 

and (g) are added to read as follows: 

§ 53.4943–11 Effective/Applicability date. 

* * * * * 

(f) Special transitional rule for private 

foundations that qualified as Type III 

supporting organizations before August 

17, 2006. The present holdings of a 

private foundation that qualified as a 

Type III supporting organization under 

section 509(a)(3) immediately before 

August 17, 2006, and that was 

reclassified as a private foundation 

under section 509(a) on or after August 

17, 2006, solely as a result of the rules 

enacted by section 1241 of the Pension 

Protection Act of 2006, Public Law 109– 

280 (120 Stat. 780), will be determined 

using the same rules that apply to Type 

III supporting organizations under 

section 4943(f)(7). 

(g) Special transitional rule for Type 

III supporting organizations created as 

trusts before November 20, 1970. A trust 

that qualifies as a Type III supporting 

organization under section 509(a)(3) and 

meets the requirements of Treas. Reg. 

§ 1.509(a)–4(i)(9) will be treated as a 

‘‘functionally integrated Type III 

supporting organization’’ for purposes 

of section 4943(f)(3)(A). 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. E9–22866 Filed 9–23–09; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Parts 40, 41, and 45 

[Docket No. TTB–2009–0002; Notice No. 99; 

Re: T.D. TTB–81, T.D. TTB–78, Notice No. 

95] 

RIN 1513–AB75 

Extension of Package Use-Up Rule for 

Roll-Your-Own Tobacco and Pipe 

Tobacco (2009R–368P) 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking; 

cross-reference to temporary rule. 

SUMMARY: Elsewhere in this issue of the 

Federal Register, the Alcohol and 

Tobacco Tax and Trade Bureau is 

issuing a temporary rule to extend the 

use-up period and delay the application 

of the new pipe tobacco and roll-yourown tobacco classification rule adopted 

on June 22, 2009, in response to certain 

changes made to the Internal Revenue 

Code of 1986 by the Children’s Health 

Insurance Program Reauthorization Act 

of 2009. That temporary rule also 

corrects two minor errors in the 

previously published regulatory texts. 

The text of the regulations in the 

temporary rule published in the Rules 

and Regulations section of this issue of 

the Federal Register serves as the text 

of the proposed regulations. 

DATES: Comments must be received on 

or before November 23, 2009. 

ADDRESSES: You may send comments on 

this notice to one of the following 

addresses: 

• http://www.regulations.gov: Use the 

comment form for this notice on the 

Federal e-rulemaking portal, 

Regulations.gov, to submit comments 

via the Internet; 

• Mail: Director, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, P.O. Box 14412, 

Washington, DC 20044–4412. 

• Hand Delivery/Courier in Lieu of 

Mail: Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G Street, NW., Suite 

200–E, Washington, DC 20005. 

See the Public Participation section of 

this notice for specific instructions and 

requirements for submitting comments, 

and for information on how to request 

a public hearing. 

You may view copies of this notice, 

selected supporting materials, and any 

comments we receive about this 

proposal within Docket No. TTB–2009– 

0002 at http://www.regulations.gov. A 

direct link to this docket is posted on 


cprice-sewell on DSK2BSOYB1PROD with PROPOSALS
48688 Federal Register / Vol. 74, No. 184 / Thursday, September 24, 2009 / Proposed Rules 

the TTB Web site at http://www.ttb.gov/ 

tobacco/tobacco-rulemaking.shtml 

under Notice No. 99. You also may view 

copies of this notice, all supporting 

materials, and any comments we receive 

about this proposal by appointment at 

the TTB Information Resource Center, 

1310 G Street, NW., Washington, DC 

20220. Please call 202–453–2270 to 

make an appointment. 

FOR FURTHER INFORMATION CONTACT: 

Amy Greenberg, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau (202–453–2099). 

SUPPLEMENTARY INFORMATION: 

Background 

On June 22, 2009, the Alcohol and 

Tobacco Tax and Trade Bureau (TTB) 

published a temporary rule in the 

Federal Register (T.D. TTB–78, 74 FR 

29401) to implement certain changes 

made to the Internal Revenue Code of 

1986 by the Children’s Health Insurance 

Program Reauthorization Act of 2009 

(the Act). The regulatory changes made 

by the temporary rule went into effect 

on June 22, 2009. The temporary rule 

included a new classification rule 

reflecting the expansion of the statutory 

definition of roll-your-own tobacco to 

include cigar wrapper and filler. The 

temporary rule also outlined new notice 

requirements for the packaging and 

labeling of pipe tobacco and roll-yourown tobacco to distinguish these two 

products from each other for tax 

purposes. As such, the temporary rule 

included two use-up rules allowing 

manufacturers and importers of pipe 

tobacco and roll-your-own tobacco to 

use their existing packages until August 

1, 2009. 

In the June 22, 2009, issue of the 

Federal Register, TTB also published a 

notice of proposed rulemaking, Notice 

No. 95 (74 FR 29433), inviting 

comments on the temporary regulations 

contained in T.D. TTB–78, with 

comments due on or before August 21, 

2009. In response to Notice No. 95, we 

received two comments raising concerns 

regarding the pipe tobacco classification 

and notice provisions of T.D. TTB–78, 

which we believe warrant immediate 

consideration. Both commenters 

requested a delay in the implementation 

of the pipe tobacco classification and 

notice-related requirements, asserting 

that the use-up periods in the temporary 

regulations (that is, to August 1, 2009) 

gave insufficient time for industry 

members to comply with the new 

requirements. 

New Temporary Rule and Notice of 

Proposed Rulemaking 

After carefully considering these two 

comments, TTB believes it should delay 

the application of the new classification 

rule regarding pipe tobacco and rollyour-own tobacco, and extend the two 

use-up rules for existing packaging. As 

a result, we are publishing a new 

temporary rule, T.D. TTB–81, in the 

Rules and Regulations section of this 

issue of the Federal Register. These 

revised temporary regulations involve 

amendments to parts 40, 41, and 45 of 

the TTB regulations (27 CFR parts 40, 

41, and 45). The text of the revised 

temporary regulations serves as the text 

of these proposed regulations, and the 

preamble to the revised temporary 

regulations explains these proposed 

regulations in detail. The new 

temporary rule also corrects two minor 

errors in the previously published 

regulatory texts. 

Public Participation 

Comments Invited 

We invite comments from interested 

members of the public on this proposed 

rulemaking. 

Submitting Comments 

You may submit comments on this 

notice by using one of the following 

three methods: 

• Federal e-Rulemaking Portal: You 

may send comments via the online 

comment form linked to this notice in 

Docket No. TTB–2009–0002 on 

‘‘Regulations.gov,’’ the Federal erulemaking portal, at http:// 

www.regulations.gov. A link to the 

docket is available under Notice No. 99 

on the TTB Web site at http:// 

www.ttb.gov/tobacco/tobaccorulemaking.shtml. Supplemental files 

may be attached to comments submitted 

via Regulations.gov. For information on 

how to use Regulations.gov, click on the 

site’s Help or FAQ tabs. 

• U.S. Mail: You may send comments 

via postal mail to the Director, 

Regulations and Rulings Division, 

Alcohol and Tobacco Tax and Trade 

Bureau, P.O. Box 14412, Washington, 

DC 20044–4412. 

• Hand Delivery/Courier: You may 

hand-carry your comments or have them 

hand-carried to the Alcohol and 

Tobacco Tax and Trade Bureau, 1310 G 

Street, NW., Suite 200–E, Washington, 

DC 20005. 

Please submit your comments by the 

closing date shown above in this notice. 

Your comments must reference Notice 

No. 99 and include your name and 

mailing address. Your comments also 

must be made in English, be legible, and 

be written in language acceptable for 

public disclosure. We do not 

acknowledge receipt of comments, and 

we consider all comments as originals. 

If you are commenting on behalf of an 

association, business, or other entity, 

your comment must include the entity’s 

name as well as your name and position 

title. If you comment via 

Regulations.gov, please include the 

entity’s name in the ‘‘Organization’’ 

blank of the comment form. If you 

comment via postal mail, please submit 

your entity’s comment on letterhead. 

You may also write to the 

Administrator before the comment 

closing date to ask for a public hearing. 

The Administrator reserves the right to 

determine whether to hold a public 

hearing. 

Confidentiality 

All submitted comments and 

attachments are part of the public record 

and subject to disclosure. Do not 

enclose any material in your comments 

that you consider to be confidential or 

that is inappropriate for public 

disclosure. 

Public Disclosure 

On the Federal e-rulemaking portal, 

Regulations.gov, we will post, and the 

public may view, copies of this notice, 

the related temporary rule, selected 

supporting materials, and any electronic 

or mailed comments we receive about 

this proposal. A direct link to the 

Regulations.gov docket containing this 

notice and the posted comments 

received on it is available on the TTB 

Web site at http://www.ttb.gov/tobacco/ 

tobacco-rulemaking.shtml under Notice 

No. 99. You may also reach the docket 

containing this notice and the posted 

comments received on it through the 

Regulations.gov search page at http:// 

www.regulations.gov. 

All posted comments will display the 

commenter’s name, organization (if 

any), city, and State, and, in the case of 

mailed comments, all address 

information, including e-mail addresses. 

We may omit voluminous attachments 

or material that we consider unsuitable 

for posting. 

You and other members of the public 

may view copies of this notice, the 

related temporary rule, other supporting 

materials, and any electronic or mailed 

comments we receive about this 

proposal by appointment at the TTB 

Information Resource Center, 1310 G 

Street, NW., Washington, DC 20220. 

You may also obtain copies at 20 cents 

per 8.5 x 11-inch page. Contact our 

information specialist at the above 

address or by telephone at 202–453– 

2270 to schedule an appointment or to 

request copies of comments or other 

materials. 


cprice-sewell on DSK2BSOYB1PROD with PROPOSALS
Federal Register / Vol. 74, No. 184 / Thursday, September 24, 2009 / Proposed Rules 48689 

Regulatory Flexibility Act, Paperwork 

Reduction Act, and Executive Order 

12866 

Since the regulatory text proposed in 

this notice of proposed rulemaking is 

identical to that contained in the 

companion temporary rule published 

elsewhere in this issue of the Federal 

Register, the analyses contained in the 

preamble of the temporary rule 

concerning the Regulatory Flexibility 

Act, the Paperwork Reduction Act, and 

Executive Order 12866 also apply to this 

proposed rule. 

Drafting Information 

Michael Hoover of the Regulations 

and Rulings Division, Alcohol and 

Tobacco Tax and Trade Bureau, drafted 

this document. 

List of Subjects 

27 CFR Part 40 

Cigars and cigarettes, Claims, 

Electronic funds transfers, Excise taxes, 

Imports, Labeling, Packaging and 

containers, Reporting and recordkeeping 

requirements, Surety bonds, Tobacco. 

27 CFR Part 41 

Cigars and cigarettes, Claims, Customs 

duties and inspection, Electronic funds 

transfers, Excise taxes, Imports, 

Labeling, Packaging and containers, 

Puerto Rico, Reporting and 

recordkeeping requirements, Surety 

bonds, Tobacco, Virgin Islands, 

Warehouses. 

27 CFR Part 45 

Administrative practice and 

procedure, Authority delegations 

(Government agencies), Cigars and 

cigarettes, Excise taxes, Labeling, 

Packaging and containers, Reporting 

and recordkeeping requirements, 

Tobacco 

Proposed Amendments to the 

Regulations 

For the reasons discussed in the 

preamble, TTB proposes to amend 27 

CFR, chapter I, parts 40, 41, and 45 as 

follows: 

PART 40—MANUFACTURE OF 

TOBACCO PRODUCTS AND 

CIGARETTE PAPERS AND TUBES, 

AND PROCESSED TOBACCO 

1. The authority citation for part 40 is 

revised to read as follows: 

Authority: 26 U.S.C. 5142, 5143, 5146, 

5701–5705, 5711–5713, 5721–5723, 5731, 

5741, 5751, 5753, 5761–5763, 6061, 6065, 

6109, 6151, 6301, 6302, 6311, 6313, 6402, 

6404, 6423, 6676, 6806, 7011, 7212, 7325, 

7342, 7502, 7503, 7606, 7805; 31 U.S.C. 9301, 

9303, 9304, 9306. 

2. [The proposed amendatory 

instructions and the proposed amended 

regulatory text for part 40 are the same 

as the amendatory instructions and the 

amended regulatory text set forth in the 

temporary rule on this subject published 

in the Rules and Regulations section of 

this issue of the Federal Register.] 

PART 41—IMPORTATION OF 

TOBACCO PRODUCTS AND 

CIGARETTE PAPERS AND TUBES, 

AND PROCESSED TOBACCO 

3. The authority citation for part 41 is 

revised to read as follows: 

Authority: 26 U.S.C. 5701–5705, 5708, 

5712, 5713, 5721–5723, 5741, 5754, 5761– 

5763, 6301, 6302, 6313, 6402, 6404, 7101, 

7212, 7342, 7606, 7651, 7652, 7805; 31 U.S.C. 

9301, 9303, 9304, 9306. 

4. [The proposed amendatory 

instructions and the proposed amended 

regulatory text for part 41 are the same 

as the amendatory instructions and the 

amended regulatory text set forth in the 

temporary rule on this subject published 

in the Rules and Regulations section of 

this issue of the Federal Register.] 

PART 45—REMOVAL OF TOBACCO 

PRODUCTS AND CIGARETTE PAPERS 

AND TUBES, WITHOUT PAYMENT OF 

TAX, FOR USE OF THE UNITED 

STATES 

5. The authority citation for part 45 is 

revised to read as follows: 

Authority: 26 U.S.C. 5702–5705, 5723, 

5741, 5751, 5762, 5763, 6313, 7212, 7342, 

7606, 7805; 44 U.S.C. 3504(h). 

6. [The proposed amendatory 

instructions and the proposed amended 

regulatory text for part 45 are the same 

as the amendatory instructions and the 

amended regulatory text set forth in the 

temporary rule on this subject published 

in the Rules and Regulations section of 

this issue of the Federal Register.] 

Signed: August 23, 2009. 

John J. Manfreda, 

Administrator. 

Approved: September 4, 2009. 

Timothy E. Skud, 

Deputy Assistant Secretary. (Tax, Trade, and 

Tariff Policy). 

[FR Doc. E9–23173 Filed 9–23–09; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 3 

RIN 2900–AM74 

Definition of Service in the Republic of 

Vietnam 

AGENCY: Department of Veterans Affairs. 

ACTION: Withdrawal of proposed rule. 

SUMMARY: In a document published in 

the Federal Register on April 16, 2008, 

the Department of Veterans Affairs (VA) 

proposed to amend its adjudication 

regulations regarding the definition of 

‘‘service in the Republic of Vietnam.’’ 

This document withdraws that 

proposed rule. 

DATES: The proposed rule published at 

73 FR 20566 on April 16, 2008, is 

withdrawn as of September 24, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Nancy Copeland, Regulations Staff 

(211D), Compensation and Pension 

Service, Veterans Benefits 

Administration, Department of Veterans 

Affairs, 810 Vermont Avenue, NW., 

Washington, DC 20420, (202) 461–9685. 

(This is not a toll-free number.) 

SUPPLEMENTARY INFORMATION: This 

rulemaking was initiated to respond to 

a decision rendered by the U. S. Court 

of Appeals for Veterans Claims (CAVC) 

in Haas v. Nicholson, 20 Vet. App. 257 

(2006). While the comment period for 

the proposed rule was pending, the 

United States Court of Appeals for the 

Federal Circuit (Federal Circuit) decided 

Haas v. Peake, 525 F.3d 1168 (Fed. Cir. 

2008). The Federal Circuit reversed and 

remanded the CAVC decision. The 

Federal Circuit found that VA’s 

requirement that a claimant had been 

present within the land borders of 

Vietnam at some point in the course of 

his/her duty constitutes a permissible 

interpretation of 38 U.S.C. 1116, and 

affirmed that the language used in its 

implementing regulation, 38 CFR 

3.307(a)(6)(iii), may be interpreted as 

stating such an interpretation. A 

petition for a writ of certiorari by the 

U.S. Supreme Court was denied. Haas v. 

Peake, cert. denied, 129 S.Ct. 173 No. 

08–525, 2009 WL 129302 (U.S. Jan. 21, 

2009). There is no longer a need to 

revise § 3.307(a)(6)(iii), or the 

regulations that use identical language 

to define service in the Republic of 

Vietnam (38 CFR 3.814 and 3.815). 

Thus, VA is withdrawing the proposed 

rule. 


cprice-sewell on DSK2BSOYB1PROD with PROPOSALS