45358 Federal Register / Vol. 72, No. 156 / Tuesday, August 14, 2007 / Rules and Regulations 

Example 12. Contribution of replacement 

QSB stock to a partnership. (i) On January 1, 

2008, A, an individual, B, an individual, and 

X, a C corporation, form PRS, a partnership. 

A, B, and X each contribute $250 to PRS and 

agree to share all partnership items equally. 

On February 1, 2008, PRS purchases QSB 

stock for $750. PRS sells the QSB stock on 

November 3, 2008, for $1,050. PRS realizes 

$300 of gain from the sale of the QSB stock 

(none of which is treated as ordinary income) 

and allocates $100 of gain to each of its 

partners. PRS informs the partners that it 

does not intend to make an election under 

section 1045 with respect to the sale of the 

QSB stock. Each partner’s share of the 

amount realized from the sale of the QSB 

stock is $350. On November 30, 2008, A, an 

eligible partner within the meaning of 

paragraph (g)(3) of this section, purchases 

replacement QSB stock for $350 and makes 

a section 1045 election under paragraph 

(c)(1) of this section. Subsequently, A 

transfers the replacement QSB stock to ABC, 

a partnership, in exchange for an interest in 

ABC. 

(ii) Because A purchased within 60 days of 

PRS’s sale of the QSB stock, replacement 

QSB stock for a cost equal to A’s share of the 

partnership’s amount realized on the sale of 

the QSB stock, and because A made a valid 

election to apply section 1045 with respect 

to A’s share of the gain from PRS’s sale of the 

QSB stock, A does not recognize A’s $100 

distributive share of the gain from PRS’s sale 

of the QSB stock. Before the contribution of 

the replacement QSB stock to ABC, A’s 

adjusted basis in the replacement QSB stock 

is $250 ($350 cost minus $100 

nonrecognition amount). A does not 

recognize gain upon the contribution of QSB 

stock to ABC under section 721(a). Upon the 

contribution of the replacement QSB stock to 

ABC, A’s basis in the ABC partnership 

interest is $250, and ABC’s basis in the 

replacement QSB stock is $250. However, the 

replacement QSB stock does not qualify as 

QSB stock in ABC’s hands. Neither A nor 

ABC will be eligible to defer gain under 

section 1045 on a subsequent sale of the 

replacement QSB stock. 

(j) Effective date/applicability—In 

general. This section applies to sales of 

QSB stock on or after August 14, 2007. 

PART 602—OMB CONTROL NUMBERS 

UNDER THE PAPERWORK 

REDUCTION ACT 

■ Par. 3. The authority citation for part 

602 continues to read, in part, as 

follows: 

Authority: 26 U.S.C. 7805. 

■ Par. 4. In § 602.101 paragraph (b) is 

amended by adding in numerical order, 

§ 1.1045–1, to read as follows: 

§ 602.101 OMB Control numbers. 

* * * * * 

(b) * * * 

CFR part or section where 

identified and described 

Current 

OMB control 

No. 

* * * * * 

1.1045–1 ................................... 1545–1893 

* * * * * 

Kevin M. Brown, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: August 2, 2007. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. E7–15948 Filed 8–13–07; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF LABOR 

Mine Safety and Health Administration 

30 CFR Part 75 

RIN 1219–AB52 

Sealing of Abandoned Areas 

AGENCY: Mine Safety and Health 

Administration, Labor. 

ACTION: Extension of comment period. 

SUMMARY: The Mine Safety and Health 

Administration (MSHA) is extending 

the comment period for the Emergency 

Temporary Standard (ETS) on sealing of 

abandoned areas of underground coal 

mines published on May 22, 2007 (72 

FR 28796). This extension gives 

commenters additional time to review 

recently posted documents on MSHA’s 

Web site and a recently published report 

from the National Institute for 

Occupational Safety and Health 

(NIOSH) entitled ‘‘Explosion Pressure 

Design Criteria for New Seals in U.S. 

Coal Mines’’ (NIOSH Publication No. 

2007–144, July 2007). 

DATES: The comment period will close 

on September 17, 2007. 

ADDRESSES: Comments must be clearly 

identified and may be submitted by any 

of the following methods: 

(1) Federal Rulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

(2) Electronic mail: zzMSHAComments@dol.gov. Include ‘‘RIN 

1219–AB52’’ in the subject line of the 

message. 

(3) Telefax: (202) 693–9441. Include 

‘‘RIN 1219–AB52’’ in the subject. 

(4) Regular Mail: MSHA, Office of 

Standards, Regulations, and Variances, 

1100 Wilson Blvd., Room 2350, 

Arlington, Virginia, 22209–3939. 

(5) Hand Delivery or Courier: MSHA, 

Office of Standards, Regulations, and 

Variances, 1100 Wilson Blvd., Room 

2350, Arlington, Virginia 22209–3939. 

Sign in at the receptionist’s desk on the 

21st floor. 

(6) Docket: Comments can be accessed 

electronically at http://www.msha.gov 

under the ‘‘Rules and Regs’’ link. MSHA 

will post all comments on the Internet 

without change, including any personal 

information provided. Comments may 

also be reviewed at the Office of 

Standards, Regulations, and Variances, 

1100 Wilson Blvd., Room 2350, 

Arlington, Virginia. Sign in at the 

receptionist’s desk on the 21st floor. 

MSHA maintains a listserve that 

enables subscribers to receive e-mail 

notification when rulemaking 

documents are published in the Federal 

Register. To subscribe to the listserve, 

go to http://www.msha.gov/ 

subscriptions/subscribe.aspx. 

FOR FURTHER INFORMATION CONTACT: 

Patricia W. Silvey, Director, Office of 

Standards, Regulations, and Variances, 

MSHA, 1100 Wilson Boulevard, Room 

2350, Arlington, Virginia 22209–3939. 

Ms. Silvey can be reached at 

Silvey.Patricia@dol.gov (Internet Email), (202) 693–9440 (voice), or (202) 

693–9441 (facsimile). This notice is 

available on the Internet at http:// 

www.msha.gov/REGSINFO.HTM. 

SUPPLEMENTARY INFORMATION: MSHA 

issued an Emergency Temporary 

Standard (ETS) on May 22, 2007 (72 FR 

28796). On June 25, 2007, MSHA 

notified the public that the comment 

period for the ETS would close on 

August 17, 2007 (72 FR 34609). On 

August 3, 2007, the National Mining 

Association requested that the comment 

period be extended 30 days to allow 

additional time to comment on several 

new ETS related documents recently 

posted on MSHA’s Web page, including 

a set of compliance assistance questions 

and answers posted on July 23, 2007; 

MSHA’s Procedure Instruction Letter 

No. I07–V–04, Procedures for Inspection 

of Seals, issued on July 24, 2007, and 

posted on July 25, 2007; and the Seal 

Design Approval Information Template 

updated on August 2, 2007. 

In addition, MSHA posted four new 

seal designs on August 2, 2007: Three 

50 psi seal designs and one 120 psi seal 

design. Furthermore, NIOSH recently 

published a final report on ‘‘Explosion 

Pressure Design Criteria for New Seals 

in U.S. Coal Mines.’’ The report is 

available on the Internet at: http:// 

www.cdc.gov/niosh/mining/pubs/pdfs/ 

2007–144.pdf. 

MSHA is extending the comment 

period to September 17, 2007. This 


sroberts on PROD1PC70 with RULES
Federal Register / Vol. 72, No. 156 / Tuesday, August 14, 2007 / Rules and Regulations 45359 

action allows commenters sufficient 

time to fully review the posted 

documents and submit comments. 

MSHA will accept written comments 

and other appropriate data from any 

interested party up to the close of the 

comment period on September 17, 2007. 

Dated: August 9, 2007. 

John P. Pallasch, 

Deputy Assistant Secretary for Mine Safety 

and Health. 

[FR Doc. 07–3977 Filed 8–9–07; 4:19 pm] 

BILLING CODE 4510–43–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 199 

[DOD–2007–HA–0048] 

RIN 0720–AB16 

TRICARE; Outpatient Hospital 

Prospective Payment System (OPPS) 

AGENCY: Office of the Secretary, DoD. 

ACTION: Interim final rule. 

SUMMARY: This interim final rule 

implements a prospective payment 

system for hospital outpatient services 

similar to that furnished to Medicare 

beneficiaries, as set forth in section 

1833(t) of the Social Security Act. The 

rule also recognizes applicable statutory 

requirements and changes arising from 

Medicare’s continuing experience with 

this system including certain related 

provisions of the Medicare Prescription 

Drug, Improvement, and Modernization 

Act of 2003. The Department is 

publishing this rule as an interim final 

rule to implement existing statutory 

requirements for adoption of Medicare 

payment methods for institutional care. 

Interim final rule publication will 

ensure the expeditious implementation 

of a proven hospital OPPS, providing 

incentives for hospitals to furnish 

outpatient services in an efficient and 

effective manner. However, public 

comments are invited and will be 

considered for possible revisions to the 

final rule. 

DATES: Effective Dates: September 13, 

2007. 

Comments: Written comments 

received at the address indicated below 

by October 15, 2007 will be accepted. 

ADDRESSES: You may submit comments, 

identified by docket number and or RIN 

number and title, by any of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Federal Docket Management 

System Office, 1160 Defense Pentagon, 

Washington, DC 20301–1160. 

Instructions: All submissions received 

must include the agency name and 

docket number or Regulatory 

Information Number (RIN) for this 

Federal Register document. The general 

policy for comments and other 

submissions from members of the public 

is to make these submissions available 

for public viewing on the Internet at 

http://regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: 

David E. Bennett, TRICARE 

Management Activity, Medical Benefits 

and Reimbursement Systems, telephone 

(303) 676–3494. 

SUPPLEMENTARY INFORMATION: 

I. Justification for Interim Final Rule 

(IFR) Making 

In accordance with Title 5, Part I, 

Chapter 5, Subchapter II, § 553(b)(3)(B) 

of the Administrative Procedures Act, 

the following rationale is being 

provided for implementing TRICARE’s 

OPPS under the IFR process. 

In the National Defense Authorization 

Act for Fiscal Year 2002 (NDAA–02), 

Public Law 107–107 (December 28, 

2001), several reforms were enacted 

relating to TRICARE coverage and 

payment methods for skilled nursing 

and home health services which were 

all implemented through interim final 

rule (IFR) making to ensure expeditious 

implementation of Congressionally 

mandated reimbursement systems. In 

addition to the requirement that 

TRICARE establish an integrated subacute care program consisting of skilled 

nursing facility and home health care 

services modeled after the Medicare 

program, Congress also—in section 707 

of NDAA–02—changed the statutory 

authorization (in 10 U.S.C. 1079(j)(2)) 

that TRICARE payment methods for 

institutional care ‘‘may be’’ determined 

to the extent practicable in accordance 

with Medicare payment rules to a 

mandate that TRICARE payment 

methods ‘‘shall be’’ determined to the 

extent practicable in accordance with 

Medicare payment rules. Section 707(c) 

required that the amendments made by 

this section shall take effect on the date 

that is 90 days after the date of the 

enactment of the Act. 

In the supplementary sections of both 

the Sub-Acute Care Program interim and 

final rules (67 FR 40597, June 13, 2002, 

and 70 FR 61377—Supplementary 

Information, VIII. Payment Methods for 

Hospital Outpatient Services), the 

public was informed of the Agency’s 

intent to adopt and implement the 

Medicare Prospective Payment System 

to the extent practicable. However, 

because of complexities of the Medicare 

transition process and the lack of 

TRICARE cost report data comparable to 

Medicare’s, it was not practicable for the 

Department to adopt Medicare OPPS for 

hospital outpatient services at that time. 

It was recognized that adoption of the 

Medicare OPPS would require full 

commitment by the Agency to ensure 

expeditious implementation of the 

OPPS given the fact that Medicare’s 

outpatient reimbursement system had 

been in effect since August 1, 2000. A 

formal OPPS work group was formed 

over 21⁄2 years ago to finalize 

operational requirements and develop 

sophisticated software for processing 

and payment of hospital outpatient 

claims. Although the agency was 

committed to mirroring the basic 

Medicare reimbursement methodology 

as closely as possible (i.e., Medicare 

Ambulatory Payment Classification 

(APC) system, national APC payment 

rates, geographical wage adjustments, 

discounting, coding requirements, etc.), 

there were modifications that had to be 

done to the software grouping and 

pricing components to accommodate 

TRICARE’s unique beneficiary and 

benefit structure. The continual 

updating of grouping and pricing 

software based on ongoing Medicare 

quarterly updates, along with TRICARE 

specific requirements, have been a 

challenge to both TRICARE and its 

Managed Care Support Contractors. 

Based on the agency’s requirement to 

implement OPPS as mandated under 

section 707 of NDAA–02 (i.e., the 

statutory change to 10 U.S.C. 1079(j)(2)) 

that TRICARE payment methods for 

institutional care shall be determined to 

the extent practicable in accordance 

with Medicare payment rules), and to 

maximize the administrative efficiencies 

and cost-savings of this new 

reimbursement system, TRICARE opted 

to go with the same interim final rule 

making process that it used in 

implementing the two previously 

mandated Medicare reimbursement 

systems (i.e., the TRICARE Home Health 

Agency and the Skilled Nursing Facility 

Prospective Payment System, which 

also statutorily mandated under the 

same NDAA as OPPS—which was 

section 707 of NDAA–02). 

The fact that TRICARE will be 

following Medicare changes to the 

extent practicable (i.e., outpatient 

services provided in hospitals subject to 

Medicare OPPS as specified in 42 CFR 

§ 413.65 and 42 CFR § 419.20 will be 

paid in accordance with the provisions 


sroberts on PROD1PC70 with RULES