Federal Register / Vol. 62, No. 145 / Tuesday, July 29, 1997 / Rules and Regulations 40449

1. Redesignating paragraph (b) as

paragraph (c).

2. Adding a new paragraph (b).

The addition reads as follows:

§ 1.501(c)(5)–1 Labor, agricultural, and

horticultural organizations.

* * * * *

(b)(1) General rule. An organization is

not an organization described in section

501(c)(5) if the principal activity of the

organization is to receive, hold, invest,

disburse or otherwise manage funds

associated with savings or investment

plans or programs, including pension or

other retirement savings plans or

programs.

(2) Exception. Paragraph (b)(1) of this

section shall not apply to an

organization which—

(i) Is established and maintained by

another labor organization described in

section 501(c)(5) (determined without

regard to this paragraph (b)(2));

(ii) Is not directly or indirectly

established or maintained in whole or in

part by one or more—

(A) Employers;

(B) Governments or agencies or

instrumentalities thereof; or

(C) Government controlled entities;

(iii) Is funded by membership dues

from members of the labor organization

described in this paragraph (b)(2) and

earnings thereon; and

(iv) Has not at any time after

September 2, 1974 (the date of

enactment of the Employee Retirement

Income Security Act of 1974, Pub. L.

93–406, 88 Stat. 829) provided for,

permitted or accepted employer

contributions.

(3) Example. The principles of this

paragraph (b) are illustrated by the

following example:

Example. Trust A is organized in

accordance with a collective bargaining

agreement between labor union K and

multiple employers. Trust A forms part of a

plan that is established and maintained

pursuant to the agreement and which covers

employees of the signatory employers who

are members of K. Representatives of both the

employers and K serve as trustees. A receives

contributions from the employers who are

subject to the agreement. Retirement benefits

paid to K’s members as specified in the

agreement are funded exclusively by the

employers’ contributions and accumulated

earnings. A also provides information to

union members about their retirement

benefits and assists them with administrative

tasks associated with the benefits. Most of

A’s activities are devoted to these functions.

From time to time, A also participates in the

renegotiation of the collective bargaining

agreement. A’s principal activity is to

receive, hold, invest, disburse, or otherwise

manage funds associated with a retirement

savings plan. In addition, A does not satisfy

all the requirements of the exception

described in paragraph (b)(2) of this section.

(For example, A accepts contributions from

employers.) Therefore, A is not a labor

organization described in section 501(c)(5).

* * * * *

Michael P. Dolan,

Acting Commissioner of Internal Revenue.

Approved: July 8, 1997.

Donald C. Lubick,

Acting Assistant Secretary of the Treasury.

[FR Doc. 97–19814 Filed 7–28–97; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF DEFENSE

Department of the Navy

32 CFR Part 706

Certifications and Exemptions Under

the International Regulations for

Preventing Collisions at Sea, 1972

AGENCY: Department of the Navy, DOD.

ACTION: Final rule.

SUMMARY: The Department of the Navy

is amending its certifications and

exemptions under the International

Regulations for Preventing Collisions at

Sea, 1972 (72 COLREGS), to reflect that

the Deputy Assistant Judge Advocate

General (Admiralty) of the Navy has

determined that USS PEARL HARBOR

(LSD 52) is a vessel of the Navy which,

due to its special construction and

purpose, cannot fully comply with

certain provisions of the 72 COLREGS

without interfering with its special

function as a naval vessel. The intended

effect of this rule is to warn mariners in

waters where 72 COLREGS apply.

EFFECTIVE DATE: June 26, 1997.

FOR FURTHER INFORMATION CONTACT:

Captain R. R. Pixa, JAGC, U.S. Navy,

Admiralty Counsel, Office of the Judge

Advocate General, Navy Department,

200 Stovall Street, Alexandria, Virginia,

22332–2400, Telephone Number: (703)

325–9744.

SUPPLEMENTARY INFORMATION: Pursuant

to the authority granted in 33 U.S.C.

1605, the Department of the Navy

amends 32 CFR part 706. This

amendment provides notice that the

Deputy Assistant Judge Advocate

General (Admiralty) of the Navy, under

authority delegated by the Secretary of

the Navy, has certified that USS PEARL

HARBOR (LSD 52) is a vessel of the

Navy which, due to its special

construction and purpose, cannot fully

comply with the following specific

provisions of 72 COLREGS: Annex I,

section 3(a), pertaining to the horizontal

distance between the forward and after

masthead lights, without interfering

with its special function as a naval

vessel. The Deputy Assistant Judge

Advocate General (Admiralty) of the

Navy has also certified that the lights

involved are located in closest possible

compliance with the applicable 72

COLREGS requirements.

Moreover, it has been determined, in

accordance with 32 CFR parts 296 and

701, that publication of this amendment

for public comment prior to adoption is

impracticable, unnecessary, and

contrary to public interest since it is

based on technical findings that the

placement of lights on this vessel in a

manner differently from that prescribed

herein will adversely affect the vessel’s

ability to perform its military functions.

List of Subjects in 32 CFR Part 706

Marine safety, Navigation (water), and

Vessels.

Accordingly, 32 CFR Part 706 is

amended as follows:

PART 706—[AMENDED]

1. The authority citation for 32 CFR

Part 706 continues to read as follows:

Authority: 33 U.S.C. 1605.

2. Table Five of § 706.2 is amended by

adding, in numerical order, the

following entry for the USS PEARL

HARBOR:

§ 706.2 Certifications of the Secretary of

the Navy under Executive Order 11964 and

33 U.S.C. 1605.

* * * * *
40450 Federal Register / Vol. 62, No. 145 / Tuesday, July 29, 1997 / Rules and Regulations

TABLE FIVE

Vessel No.

Masthead

lights not

over all

other lights

and obstructions.

Annex I,

sec. 2(f)

Forward

masthead

light not in

forward

quarter of

ship. Annex

I, sec. 3(a)

After masthead light

less than 1⁄2

ship’s

length aft of

forward

masthead

light. Annex

I, sec. 3(a)

Percentage

horizontal

separation

attained

* * * * * * *

USS PEARL HARBOR ............................................................................. LSD 52 X 63.9

* * * * * * *

Dated: June 26, 1997.

R.R. Pixa,

Captain, JAGC, U.S. Navy, Deputy Assistant

Judge Advocate, General (Admiralty).

[FR Doc. 97–19831 Filed 7–28–97; 8:45 am]

BILLING CODE 3810–FF–P

DEPARTMENT OF COMMERCE

Patent and Trademark Office

37 CFR Parts 1 and 2

[Docket No. 970410086–7174–02]

RIN 0651–AA92

Revision of Patent and Trademark

Fees for Fiscal Year 1998

AGENCY: Patent and Trademark Office,

Commerce.

ACTION: Final rule.

SUMMARY: The Patent and Trademark

Office (PTO) is amending the rules of

practice in patent and trademark cases

to adjust certain patent fee and

trademark service fee amounts to reflect

fluctuations in the Consumer Price

Index (CPI) and to recover costs of

operation.

EFFECTIVE DATE: October 1, 1997.

FOR FURTHER INFORMATION CONTACT:

Matthew Lee by telephone at (703) 305–

8051, fax at (703) 305–8007, or by mail

marked to his attention and addressed

to the Commissioner of Patents and

Trademarks, Office of Finance, Crystal

Park 1, Suite 802, Washington, DC

20231.

SUPPLEMENTARY INFORMATION: This rule

change is designed to adjust PTO fees in

accordance with the applicable

provisions of title 35, United States

Code; section 31 of the Trademark

(Lanham) Act of 1946 (15 U.S.C. 1113);

and section 10101 of the Omnibus

Budget Reconciliation Act of 1990 (as

amended by section 8001 of Public Law

103–66), all as amended by the Patent

and Trademark Office Authorization Act

of 1991 (Pub. L. 102–204).

When the ‘‘Revision of Patent and

Trademark Fees for Fiscal Year 1998’’

was published as a proposed rule, the

PTO assumed that the fee revisions

would not become effective until after

the ‘‘1996 Changes to Patent Practice

and Procedure’’ (hereinafter

‘‘Miscellaneous Changes’’). See 61 FR

49819 (Sept. 23, 1996) (proposed

Miscellaneous Changes rule). The

changes proposed in the fee revision

notice of proposed rulemaking have

been modified to take into account that

the fee revision rule will become

effective before the Miscellaneous

Changes rulemaking.

Background

Statutory Provisions

Patent fees are authorized by 35

U.S.C. 41 and 35 U.S.C. 376. A fifty

percent reduction in the fees paid under

35 U.S.C. 41 (a) and (b) by independent

inventors, small business concerns, and

nonprofit organizations who meet

prescribed definitions is required by 35

U.S.C. 41(h).

Subsection 41(f) of title 35, United

States Code, provides that fees

established under 35 U.S.C. 41 (a) and

(b) may be adjusted on October 1, 1992,

and every year thereafter, to reflect

fluctuations in the Consumer Price

Index (CPI) over the previous twelve

months.

Section 10101 of the Omnibus Budget

Reconciliation Act of 1990 (amended by

section 8001 of Public Law 103–66)

provides that there shall be a surcharge

on all fees established under 35 U.S.C.

41(a) and (b) to collect $119 million in

fiscal year 1998.

Subsection 41(d) of title 35, United

States Code, authorizes the

Commissioner to establish fees for all

other processing, services, or materials

related to patents to recover the average

cost of providing these services or

materials, except for the fees for

recording a document affecting title, for

each photocopy, and for each black and

white copy of a patent.

Section 376 of title 35, United States

Code, authorizes the Commissioner to

set fees for patent applications filed

under the Patent Cooperation Treaty

(PCT).

Subsection 41(g) of title 35, United

States Code, provides that new fee

amounts established by the

Commissioner under section 41 may

take effect thirty days after notice in the

Federal Register and the Official

Gazette of the Patent and Trademark

Office.

Section 31 of the Trademark (Lanham)

Act of 1946, as amended (15 U.S.C.

1113), authorizes the Commissioner to

establish fees for the filing and

processing of an application for the

registration of a trademark or other

mark, and for all other services and

materials relating to trademarks and

other marks.

Section 31(a) of the Trademark

(Lanham) Act of 1946 (15 U.S.C.

1113(a)), as amended, allows trademark

fees to be adjusted once each year to

reflect, in the aggregate, any fluctuations

during the preceding twelve months in

the CPI.

Section 31 also allows new trademark

fee amounts to take effect thirty days

after notice in the Federal Register and

the Official Gazette of the Patent and

Trademark Office.

Recovery Level Determinations

This rule adjusts patent fee and

trademark service fee amounts for a

planned recovery of $763,391,000 in

fiscal year 1998, as proposed in the

Administration’s budget request to the

Congress.

The patent statutory fees established

by 35 U.S.C. 41 (a) and (b) will be

adjusted on October 1, 1997, to reflect

any fluctuations occurring during the

previous twelve months in the

Consumer Price Index for all urban

consumers (CPI–U). In calculating these