Federal Register / Vol. 62, No. 22 / Monday, February 3, 1997 / Notices 5057

iii. identity of the currency

purchased;

iv. the amount purchased;

(G) Time of the transaction.

With respect to section (i)(1)(I) and

(i)(2)(G) above, the requirement for

disclosure of the time of the exchange

shall be deemed to be met, if income

item conversions and/or de minimis

purchase and sale transactions by a

bank or broker-dealer take place once

per day and the time of such

conversions is set forth in the bank’s or

broker-dealer’s written policies and

procedures which are provided to the

independent plan fiduciary as required

under section II(h)(1) of this exemption.

(j) The bank or broker-dealer, or its

affiliate, maintains, within territories

under the jurisdiction of the United

States Government, for a period of six

years from the date of the transaction,

the records necessary to enable the

persons described in paragraph (1) of

this section to determine whether the

applicable conditions of this exemption

have been met, including a record of the

specific exchange rate or range of

exchange rates the bank or broker-dealer

established each day for foreign

exchange transactions effected under

standing instructions for income item

conversions and de minimis purchase

and sale transactions. However, a

prohibited transaction will not be

considered to have occurred if, due to

circumstances beyond the bank’s or

broker-dealer’s control, the records are

lost or destroyed prior to the end of the

six-year period, and no party in interest

other than the bank or broker-dealer, or

its affiliate shall be subject to the civil

penalty that may be assessed under

section 502(i) of the Act, or the taxes

imposed by section 4975(a) and (b) of

the Code, if the records are not

maintained by the bank or brokerdealer, or its affiliate, or are not made

available for examination by the bank or

broker-dealer, or its affiliate as required

by paragraph (h) below.

(k)(1) Except as provided in

subparagraph (2) of this paragraph and

notwithstanding any provisions of

subsection (a)(2) and (b) of section 504

of the Act, the records referred to in

paragraph (j) of this Section are

available at their customary location for

examination, upon reasonable notice,

during normal business hours by:

(A) Any duly authorized employee or

representative of the Department of

Labor or the Internal Revenue Service.

(B) Any fiduciary of a plan who has

authority to acquire or dispose of the

assets of the plan involved in the foreign

exchange transaction or any duly

authorized employee or representative

of such fiduciary.

(C) Any contributing employer to the

plan involved in the foreign exchange

transaction or any duly authorized

employee or representative of such

employer.

(2) None of the persons described in

subparagraphs (B) and (C) shall be

authorized to examine a bank’s or

broker-dealer’s trade secrets or

commercial or financial information of

a bank or broker-dealer, or an affiliate

thereof which is privileged or

confidential.

Section IV Definitions and General

Rules

For purposes of this exemption,

(a) A ‘‘foreign exchange transaction’’

means the exchange of the currency of

one nation for the currency of another

nation.

(b) The term ‘‘standing instruction’’

means a written authorization from a

plan fiduciary, who is independent of

the bank or broker-dealer engaging in

the foreign exchange transaction and

any affiliate thereof, to the bank or

broker-dealer to effect the transactions

specified therein pursuant to the

instructions provided in such

authorization.

(c) A ‘‘bank’’ means a bank which is

supervised by the United States or a

State thereof, or any domestic affiliate

thereof.

(d) A ‘‘broker-dealer’’ means a brokerdealer registered under the Securities

Exchange Act of 1934, or any domestic

affiliate thereof.

(e) A ‘‘domestic affiliate’’ of a bank or

broker-dealer means any entity which is

supervised by the United States or a

state thereof and which is directly or

indirectly, through one or more

intermediaries, controlling, controlled

by, or under common control with such

bank or broker-dealer.

(f) The term ‘‘control’’ means the

power to exercise a controlling

influence over the management or

policies of a person other than an

individual.

(g) An ‘‘income item conversion’’

means the conversion into U.S. dollars

of an amount which is the equivalent of

no more than 100,000 U.S. dollars of

interest, dividends or other distributions

or payments with respect to a security,

tax reclaims, proceeds from dispositions

of rights, fractional shares or other

similar items denominated in the

currency of another nation that are

received by the bank or broker-dealer on

behalf of the plan from the plan’s

foreign investment portfolio.

(h) A ‘‘de minimis purchase or sale

transaction’’ means the purchase or sale

of foreign currencies in an amount of no

more than 100,000 U.S. dollars or the

equivalent thereof in connection with

the purchase or sale of foreign securities

by a plan.

(i) For purposes of this exemption the

term ‘‘employee benefit plan’’ refers to

a pension plan described in 29 CFR

§ 2510.3–2 and/or a welfare benefit plan

described in 29 CFR § 2510.3–1.

(j) For purposes of this exemption, the

term ‘‘good funds’’ means funds

immediately available in cash with no

sovereign or other governmental

impediments or restrictions to the

exchange or transfer of such funds.

(k) For purposes of this exemption,

the term ‘‘business day’’ means a

banking day as defined by federal or

state banking regulations.

Signed at Washington, DC, this 28th day of

January, 1997.

Alan D. Lebowitz,

Deputy Assistant Secretary for Program

Operations, Pension and Welfare Benefits

Administration, U.S. Department of Labor.

[FR Doc. 97–2556 Filed 1–31–97; 8:45 am]

BILLING CODE 4510–29–M

LIBRARY OF CONGRESS

Copyright Office

[Docket No. 96–4 CARP DPRA]

Digital Phonorecord Delivery Rate

Adjustment Proceeding

AGENCY: Copyright Office, Library of

Congress.

ACTION: Notice vacating precontroversy

discovery schedule and notice of

meeting.

SUMMARY: The Library of Congress is

vacating the current precontroversy

discovery schedule and the date for

initiating the proceeding to determine

reasonable rates and terms for digital

transmissions that constitute a digital

phonorecord delivery to allow further

negotiations. On April 1, 1997, the

parties will meet with members of the

Copyright Office and report on the

status of these negotiations.

DATES: The schedule for the digital

phonorecord delivery rate adjustment

proceeding is vacated as of February 3,

1997. On April 1, 1997, at 10:00 a.m.,

the Copyright Office will conduct a

status meeting with all interested

parties.

ADDRESSES: The meeting will be held at

the Library of Congress, James Madison

Building, Room LM–414, First and

Independence Avenue, SE.,

Washington, DC 20540.

FOR FURTHER INFORMATION CONTACT:

William Roberts, Senior Attorney for

Compulsory Licenses, or Tanya M.
5058 Federal Register / Vol. 62, No. 22 / Monday, February 3, 1997 / Notices

Sandros, Attorney Advisor, Copyright

Arbitration Royalty Panels, P.O. Box

70977, Southwest Station, Washington,

DC 20024. Telephone: (202) 707–8380.

SUPPLEMENTARY INFORMATION: The

Digital Performance Right in Sound

Recordings Act of 1995 (‘‘Digital

Performance Act’’), Public Law No. 104–

39, 109 Stat. 336., confirms and clarifies

that the scope of the compulsory license

to make and distribute phonorecords of

nondramatic musical compositions

includes digital transmissions which

constitute ‘‘digital phonorecord

deliveries.’’ 17 U.S.C. 115(c)(3). A

‘‘digital phonorecord delivery’’ is each

individual delivery of a phonorecord by

digital transmission of a sound

recording which results in a specifically

identifiable reproduction by or for any

transmission recipient. 17 U.S.C. 115(d),

37 CFR 255.4.

The rate for all digital phonorecord

deliveries made or authorized under a

compulsory license on or before

December 31, 1997, is the same as the

current rate for the making and

distribution of physical phonorecords:

6.95 cents for each work embodied in a

phonorecord, or 1.3 cents per minute of

playing time or fraction thereof,

whichever amount is larger. 37 CFR

255.5.

The current rate for digital

phonorecord deliveries expires on

December 31, 1997. Accordingly, in the

Digital Performance Act, Congress

established a two-step process for

adjusting the royalty rate, a negotiation

period wherein the owners and the

users attempt to reach their own

voluntary licenses, and then if

necessary, and upon the filing of a

petition in 1997, the convening of a

copyright arbitration royalty panel

(CARP) to establish rates and terms for

those persons who are not covered by

such voluntary licenses. 17 U.S.C.

115(c)(3) (C) and (D).

On July 17, 1996, the Copyright Office

published a notice initiating a period for

the users and owners to negotiate

reasonable rates and terms for digital

transmissions that constitute a digital

phonorecord delivery. 61 FR 37213 (July

17, 1996). In that notice, the Office

acknowledged that the Digital

Performance Act specified neither a date

for initiating the negotiation period, nor

a date for concluding the negotiations

and instituting an arbitration

proceeding. Nevertheless, the expiration

of the current rates on December 31,

1997, prompted the Office to create a

schedule which would have new

effective rates in place by January 1,

1998. Id.

The parties with an interest in

negotiating the rates and terms for the

digital phonorecord delivery license

established in the Digital Performance

Act, however, believed that the Office’s

proposed schedule did not provide

sufficient time for negotiating a

voluntary set of rates and terms.

Therefore, on November 8, 1996, the

Recording Industry Association of

America, the National Music Publishers’

Association, Inc., and the Harry Fox

Agency, Inc. (collectively, ‘‘the Parties’’)

filed a joint motion with the Library to

vacate the scheduled dates appearing in

the July 17, 1996, Federal Register

notice. The Parties informed the Office

that adherence to the proposed schedule

would prematurely terminate their

efforts to reach a voluntary license. The

Office announced a new schedule for

this proceeding, 61 FR 65243 (December

11, 1996), which moved the date for the

filing of direct cases from January 31,

1997, to April 1, 1997.

In response to the new schedule, the

parties requested a meeting with the

Register of Copyrights to discuss the

problems associated with negotiating

rates and terms for the digital

phonorecord delivery compulsory

license within the proposed time frame.

The Copyright Office met with

representatives of the Recording

Industry of America, the National Music

Publishers’ Association, and the Harry

Fox Agency, Inc. on January 9, 1997. At

this meeting, the Parties outlined the

difficulties in determining rates and

terms for use of a new technology in a

marketplace with little definition or

clear direction. The Parties indicated

that they fully expected to reach a

voluntary agreement through

negotiations over the next few months;

however, they believe it is not possible

to conclude negotiations before April 1,

nor to prepare adequate direct cases for

presentation to an arbitration panel by

this date in the event the Office chose

to proceed with its schedule. At the

conclusion of the meeting, the Parties

asked the Office to reconsider their

original motion to vacate the schedule

and to refrain from setting a new

schedule while the Parties continue

their negotiations.

Upon further consideration, the Office

is granting the Parties’ request to vacate

the announced schedule for this

proceeding, thereby removing any

impediment for constructive

negotiations between the users and the

owners. The setting of the rates and

terms for the delivery of digital

phonorecords is not an open ended

process; therefore, the Office will

continue to monitor the progress of the

negotiations through periodic status

meetings, the first of which is scheduled

for April 1, 1997.

Dated: January 27, 1997.

Marybeth Peters,

Register of Copyrights.

[FR Doc. 97–2539 Filed 1–31–97; 8:45 am]

BILLING CODE 1410–33–P

NATIONAL COMMUNICATIONS

SYSTEM

Telecommunications Service Priority

System Oversight Committee

AGENCY: National Communications

System (NCS).

ACTION: Notice of meeting.

A meeting of the Telecommunications

Service Priority (TSP) System Oversight

Committee will convene Thursday

March 6, 1997 from 9 a.m. to 12:00 a.m.

The meeting will be held at Booz-Allen

& Hamilton 8283 Greensboro Drive,

McLean VA.

—Opening/Administrative Remarks

—Status of the TSP Program

—Preview of the TSP and CPAS Home Page

—Status of the CPAS Program

Anyone interested in attending or

presenting additional information to the

Committee, please contact LCDR Angela

Abrahamson, Manager, TSP Program Office,

(703) 607–4930, or Betty Hoskin (703) 607–

4932 by March 1, 1997.

Dr. Dennis Bodson,

Federal Register Liaison Officer, National

Communications System.

[FR Doc. 97–2602 Filed 1–31–97; 8:45 am]

BILLING CODE 5003–25–M

NATIONAL CREDIT UNION

ADMINISTRATION

Notice of Change in Subject of Meeting

The National Credit Union

Administration Board determined that

its business required the deletion of the

following items from the previously

announced open meeting (Federal

Register, Vol. 62, No. 17, page 3922,

January 27, 1997) scheduled for

Wednesday, January 29, 1997.

3. Chartering and Field of Membership

Issues.

7. Final Rule: Amendments to Part 704,

NCUA’s Rules and Regulations, Corporate

Credit Unions.

The Board voted unanimously that

Agency business required that these

items be deleted from the open agenda

and earlier announcement of these

changes was not possible.

The previously announced items were:

1. Approval of Minutes of Previous Open

Meeting.

2. Proposed Revision to the Operating Fee

Scale.