4072 Federal Register / Vol. 60, No. 13 / Friday, January 20, 1995 / Rules and Regulations

29, 1983, (48 FR 39046); and ‘‘Licensee

Event Report System,’’ (10 CFR 50.73),

July 26, 1983, (48 FR 33858). The former

specifically addresses reporting

requirements during the course of an

event. The Commission also published

a regulation (10 CFR 50.9, December 31,

1987 (523 FR 49372)), requiring that

information provided to the

Commission be complete and accurate

in all material respects, and that

licensees notify the Commission of

information having significant

implication for public health and safety

or common defense and security. In

addition, the Commission published

similar regulations regarding reporting

of nuclear material events (e.g., 10 CFR

30.50 and 10 CFR 30.9 and 10 CFR

72.74 and 10 CFR 72.11). Timely,

accurate and complete information

continues to be of great importance to

the Commission. Rules have been

promulgated which fulfill the objectives

of the Policy Statement in ensuring

timeliness, accuracy, and completeness

of the reported information.

6. Planning Basis For Emergency

Responses to Nuclear Power Reactor

Accidents

On October 23, 1979 (44 FR 61123),

the NRC published a Policy Statement,

‘‘Planning Basis for Emergency

Responses to Nuclear Power Plant

Accidents,’’ to endorse the guidance

developed by a joint task force of the

NRC and Environmental Protection

Agency (EPA) on radiological

emergency response plans to be

developed by off-site agencies.

After reviewing public comments on

the policy statement, information

obtained from workshops held on the

subject and reports from a Presidential

Commission, the NRC published a final

rule, ‘‘Emergency Planning,’’ (10 CFR

Parts 50 and 70) on August 19, 1980 (45

FR 55402). The final rule fulfilled the

objectives of the Policy Statement by

upgrading the NRC’s emergency

planning regulations to assure that

adequate protective measures can and

will be taken in the event of a

radiological emergency.

Dated at Rockville, Maryland, this 6th day

of January 1995.

For the Nuclear Regulatory Commission.

James M. Taylor,

Executive Director for Operations.

[FR Doc. 95–1475 Filed 1–19–95; 8:45 am]

BILLING CODE 7590–01–P

FEDERAL ELECTION COMMISSION

11 CFR Part 1

[Notice 1995–4]

Privacy Act; Implementation

AGENCY: Federal Election Commission.

ACTION: Final rule.

SUMMARY: The Federal Election

Commission (‘‘Commission’’ or ‘‘FEC’’)

is establishing a new system of records

under the Privacy Act of 1974,

‘‘Inspector General Investigative Files

(FEC 12)’’, consisting of the

investigatory files of the Commission’s

Office of the Inspector General (‘‘OIG’’).

The Commission is exempting this new

system of records from certain

provisions of the Privacy Act of 1974

(‘‘Act’’).

EFFECTIVE DATE: February 21, 1995.

FOR FURTHER INFORMATION CONTACT:

Ms. Susan E. Propper, Assistant General

Counsel, 999 E Street NW., Washington,

DC 20463, (202) 219–3690 or (800) 424–

9530.

SUPPLEMENTARY INFORMATION: Elsewhere

in today’s Federal Register, the

Commission is publishing a Notice of

Effective Date of the Notice of New and/

or Revised Systems of Records under

the Privacy Act, 5 U.S.C. 552a, as

amended (published at 59 FR 53977,

October 27, 1994). That Notice

established a new system of records,

FEC 12, ‘‘Office of Inspector General

Investigative Files.’’

On October 27, 1994, the Commission

published a Notice of Proposed

Rulemaking seeking comments on a

proposal to exempt this new system of

records from certain provisions of the

Act. 59 FR 53946. No comments were

received in response to this Notice.

Statement of Basis and Purpose

Section 1.14. Specific exemptions.

The Privacy Act and the implementing

regulations require, among other things,

that the Commission provide notice

when collecting information, account

for certain disclosures, permit

individuals access to their records, and

allow them to request that the records

be amended. These provisions could

interfere with the conduct of OIG

investigations if applied to the OIG’s

maintenance of the new system of

records.

Accordingly, the Commission is

exempting FEC 12 from these

requirements under sections (j)(2) and

(k)(2) of the Act. Section (j)(2), 5 U.S.C.

552a(j)(2), exempts a system of records

maintained by ‘‘agency or component

thereof which performs as its principal

function any activity pertaining to

enforcement of criminal laws * * *.’’

Section (k)(2), 5 U.S.C. 552a(k)(2),

exempts a system of records consisting

of ‘‘investigatory materials compiled for

law enforcement purposes,’’ where such

materials are not within the scope of the

(j)(2) exemption pertaining to criminal

law enforcement.

FEC 12 consists of information

covered by the (j)(2) and (k)(2)

exemptions. The OIG investigatory files

are maintained pursuant to official

investigational and law enforcement

functions of the Commission’s Office of

Inspector General under authority of the

1988 amendments to the Inspector

General Act of 1978. See Pub. L. 100–

504, amending Pub. L. 95–452, 5 U.S.C.

app. The OIG is an office within the

Commission that performs as one of its

principal functions activities relating to

the enforcement of criminal laws. In

addition, the OIG is responsible for

investigating a wide range of noncriminal law enforcement matters,

including civil, administrative, or

regulatory violations and similar

wrongdoing. Access by subject

individuals and others to this system of

records could substantially compromise

the effectiveness of OIG investigations,

and thus impede the apprehension and

successful prosecution or discipline of

persons engaged in fraud or other illegal

activity.

For these reasons, the Commission is

exempting FEC 12 under exemptions

(j)(2) and (k)(2) of the Privacy Act by

adding a new paragraph (b) to 11 CFR

1.14, the section in which the

Commission specifies its systems of

records that are exempt under the Act.

Where applicable, section (j)(2) may be

invoked to exempt a system of records

from any Privacy Act provision except:

5 U.S.C. 552a(b) (conditions of

disclosure); (c) (1) and (2) (accounting of

disclosures and retention of accounting,

respectively); (e)(4) (A) through (F)

(system notice requirements); (e) (6), (7),

(8), (10) and (11) (certain agency

requirements relating to system

maintenance); and (f) (criminal

penalties). Section (k)(2) may be

invoked to exempt a system of records

from: 5 U.S.C. 552a(c)(3) (making

accounting of disclosures available to

the subject individual); (d) (access to

records); (e)(1) (maintaining only

relevant and necessary information);

(e)(4) (G), (H), and (I) (notice of certain

procedures), and (f) (promulgation of

certain Privacy Act rules). New

paragraph (b) notes these specific

exceptions and exemptions.

Federal Register / Vol. 60, No. 13 / Friday, January 20, 1995 / Rules and Regulations 4073

Certification of No Effect Pursuant to 5

U.S.C. 605(b) (Regulatory Flexibility

Act)

The Commission certifies that this

rule will not have a significant impact

on a substantial number of small

entities. The basis for this certification

is that the Privacy Act applies only to

‘‘individuals,’’ and individuals are not

‘‘small entities’’ within the meaning of

the Regulatory Flexibility Act.

List of Subjects in 11 CFR Part 1

Privacy.

For the reasons set out in the

preamble, chapter I of title 11 of the

Code of Federal Regulations is amended

to read as follows:

PART 1—PRIVACY ACT

1. The authority citation for part 1

continues to read as follows:

Authority: 5 U.S.C. 552a.

2. Section 1.14 is amended by

redesignating paragraph (b) as paragraph

(c), and by adding new paragraph (b) to

read as follows:

§ 1.14 Specific exemptions.

* * * * *

(b) (1) Pursuant to 5 U.S.C. 552a(j)(2),

records contained in FEC 12, Office of

Inspector General Investigative Files, are

exempt from the provisions of 5 U.S.C.

552a, except subsections (b), (c)(1) and

(2), (e)(4)(A) through (F), (e)(6), (7), (9),

(10), and (11) and (f) , and the

corresponding provisions of 11 CFR part

1, to the extent this system of records

relates in any way to the enforcement of

criminal laws.

(2) Pursuant to 5 U.S.C. 552a(k)(2),

FEC 12, Office of Inspector General

Investigative Files, is exempt from 552a

(c)(3), (d), (e)(1), (e)(4)(G), (H), and (I),

and (f), and the corresponding

provisions of 11 CFR part 1, to the

extent the system of records consists of

investigatory material compiled for law

enforcement purposes, except for

material that falls within the exemption

included in paragraph (b)(1) of this

section.

* * * * *

Dated: January 17, 1995.

Danny Lee McDonald,

Chairman.

[FR Doc. 95–1476 Filed 1–19–95; 8:45 am]

BILLING CODE 6715–01–M

SMALL BUSINESS ADMINISTRATION

13 CFR Part 108

Loans to State and Local Development

Companies; Seller Financing by

Regulated Lenders

AGENCY: Small Business Administration

(SBA).

ACTION: Final rule.

SUMMARY: This rule provides an

exception to the requirement that third

party financing for a certified

development company project derived

from the seller of the property being

financed must be subordinate to the

financing provided by the development

company. It provides that if a regulated

financial institution is providing the

third party financing and is also the

seller of the real estate being financed

the requirement for such subordination

may be waived at SBA’s option. A

condition for such waiver is that the real

estate being sold was previously

acquired by the institution as ‘‘other real

estate owned’’ (OREO) as defined by the

Financial institutions Reform Recovery

and Enforcement Act (FIRREA) and the

Federal Deposit Insurance Corporation

Improvement Act (FDICIA). Also, as a

condition of such waiver, an

independent appraisal of the value of

the property prepared by or under the

control of the SBA or the participating

Certified Development Company (CDC)

is required, in order to insure that no

conflict of interest will arise. This rule

will grant small businesses receiving

assistance under the SBA’s certified

development company program an

opportunity to purchase OREO which is

being made available to purchasers with

sufficient financial strength to meet the

lenders’ credit requirements under

FIRREA and FDICIA.

EFFECTIVE DATE: January 20, 1995.

FOR FURTHER INFORMATION CONTACT:

LeAnn M. Oliver, Acting Director,

Office of Rural Affairs & Economic

Development, Small Business

Administration, (202) 205–6485.

SUPPLEMENTARY INFORMATION: On March

18, 1994, SBA published in the Federal

Register a proposed regulation

amending 13 CFR 108.503–8(b)(2). That

regulation requires that all seller

financing be subordinated to SBA

backed financing made under the SBA’s

development company loan program (59

FR 12864). SBA proposed to waive this

restriction if the property being financed

was classified as ‘‘other real estate

owned’’ (OREO) which was owned by a

financial institution which was

financing the development company

project in conjunction with SBA backed

financing. SBA received five comments

which favored the proposed rule, one

which opposed the change and one

which addressed the issue of SBA

adopting a general policy regarding real

estate appraisals. Comments in support

of the rule were from the trade

associations representing the CDCs and

independent bankers. They noted that

existing lender regulations preclude a

lender owning OREO from

subordinating its financing if it is the

seller of that property. The one

comment against the rule expressed

concern about lenders having the

opportunity for self-dealing under the

proposal.

SBA is adopting the proposal as

published with one change. In response

to the one concern expressed in the

comments, SBA is requiring in this final

rule that an independent appraisal of

the property be prepared under the

guidance of the CDC or SBA as a

condition to granting a waiver under the

final rule.

By this final rule, 13 CFR 108.503–

8(b)(2) is amended to provide an

exception to the current restriction

which provides that where any part of

the permanent financing for a

development company project is

supplied by the seller of the property on

which the project is located, such

financing must be subordinate to the

development company financing. This

rule permits a waiver of the general rule

if the institution is the seller of property

classified as ‘‘other real estate owned’’,

and an independent appraisal of the

value of the property prepared by or

under the control of the SBA or a CDC

demonstrates that the value of the

property which will serve as collateral

for the 503/504 loan is sufficient to

support the loan.

Regulated financial institutions have

increased their portfolios of ‘‘OREO’’ as

a result of regulations issued pursuant

to the Financial Institutions Reform

Recovery and Enforcement Act

(FIRREA) and the Federal Deposit

Insurance Corporation Improvement Act

(FDICIA). The regulations governing

lending institutions require that they

have the OREO property recorded on

their books at a fair market value based

on an appraisal prepared in

conformance with state or Federal

appraisal standards. These regulations

encourage lenders and appraisers to

value such property at a value which

should lead to relatively quick sales.

This has resulted in the availability of

very favorable real estate sales by those

lenders with the ability to meet

regulated loan-to-value ratios and other

currently stringent credit requirements

of the lenders. However, loan-to-value