Federal Register / Vol. 77, No. 35 / Wednesday, February 22, 2012 / Proposed Rules 10461 

section 338E of the Act shall be made 

within one year of the date the 

participant breached his or her Loan 

Repayment Program Contract, unless the 

NIH specifically authorizes a longer 

period. Terminations will not be 

considered a breach of contract in cases 

where such terminations are beyond the 

control of the participant as follows: 

(a) Terminations for convenience of 

the Government will not be considered 

a breach of contract and monetary 

damages will not be assessed. 

(b) Occasionally, a participant’s 

research assignment or funding may 

evolve and change to the extent that the 

individual is no longer engaged in 

approved research. Similarly, the 

research needs and priorities of the IC 

and/or the NIH may change to the extent 

that a determination is made that a 

health professional’s skills may be better 

utilized in a nonresearch assignment. 

Normally, job changes of this nature 

will not be considered a breach of 

contract on the part of either the NIH or 

the participant. Under these 

circumstances, the following will apply: 

(1) Program participation will cease as 

of the date an individual is no longer 

engaged in approved research; 

(2) Based on the approval of the NIH, 

the participant will be released from the 

remainder of his or her service 

obligation without assessment of 

damages or monetary penalties. The 

participant in this case will be 

permitted to retain all Program benefits 

made or owed by the NIH on his/her 

behalf up to the date the individual is 

no longer engaged in research, less the 

pro rata portion of any benefits 

advanced beyond the period of 

completed service. 

§ 68.14 Under what circumstances can the 

service or payment obligation be canceled, 

waived, or suspended? 

(a) Any obligation of a participant for 

service or payment will be canceled 

upon the death of the participant. 

(b) The NIH may waive or suspend 

any service or payment obligation 

incurred by the participant upon request 

whenever compliance by the 

participant: (1) Is impossible, (2) would 

involve extreme hardship to the 

participant, or (3) if enforcement of the 

service or payment obligation would be 

unconscionable. The NIH may approve 

a request for a suspension of the service 

or payment obligations for a period of 

up to one (1) year. 

(c) Compliance by a participant with 

a service or payment obligation will be 

considered impossible if the NIH 

determines, on the basis of information 

and documentation as may be required, 

that the participant suffers from a 

permanent physical or mental disability 

resulting in the inability of the 

participant to perform the service or 

other activities that would be necessary 

to comply with the obligation. 

(d) In determining whether to waive 

or suspend any or all of the service or 

payment obligations of a participant as 

imposing an undue hardship and being 

against good conscience, the NIH, on the 

basis of such information and 

documentation as may be required, will 

consider: (1) The participant’s present 

financial resources and obligations; (2) 

the participant’s estimated future 

financial resources and obligations; and 

(3) the extent to which the participant 

has problems of a personal nature, such 

as a physical or mental disability or 

terminal illness in the immediate 

family, which so intrude on the 

participant’s present and future ability 

to perform as to raise a presumption that 

the individual will be unable to perform 

the obligation incurred. 

§ 68.15 When can an NIH LRP payment 

obligation be discharged in bankruptcy? 

Any payment obligation incurred 

under § 68.13 may be discharged in 

bankruptcy under Title 11 of the United 

States Code only if such discharge is 

granted after the expiration of the sevenyear period beginning on the first date 

that payment is required and only if the 

bankruptcy court finds that a 

nondischarge of the obligation would be 

unconscionable. 

§ 68.16 Additional conditions. 

(a) When a shortage of funds exists, 

participants may be funded only 

partially, as determined by the NIH. 

However, once an NIH LRP contract has 

been signed by both parties, the NIH 

will obligate such funds as necessary to 

ensure that sufficient funds will be 

available to pay benefits for the duration 

of the period of obligated service unless, 

by mutual written agreement, the parties 

specify otherwise. 

(b) Additional conditions may be 

imposed as deemed necessary. 

§ 68.17 What other regulations and 

statutes apply? 

Several other regulations and statutes 

apply to this part. These include, but are 

not necessarily limited to: 

Debt Collection Act of 1982 (31 U.S.C. 

3701 note); 

Fair Credit Reporting Act (15 U.S.C. 

1681 et seq.); 

Federal Debt Collection Procedures 

Act of 1990 (28 U.S.C. 176); and Privacy 

Act of 1974 (5 U.S.C. 552a). 

Dated: September 28, 2011. 

Francis S. Collins, 

Director, NIH, National Institutes of Health. 

Approved: February 7, 2012. 

Kathleen Sebelius, 

Secretary. 

[FR Doc. 2012–3900 Filed 2–21–12; 8:45 am] 

BILLING CODE 4140–01–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 31 and 52 

[FAR Case 2011–011; Docket 2011–0011; 

Sequence 1] 

RIN 9000–AM13 

Federal Acquisition Regulation; 

Unallowability of Costs Associated 

With Foreign Contractor Excise Tax 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule. 

SUMMARY: DoD, GSA, and NASA are 

proposing to amend the Federal 

Acquisition Regulation (FAR) to 

implement the requirements of the 

James Zadroga 9/11 Health and 

Compensation Act of 2010 regarding the 

imposition of a 2 percent tax on certain 

foreign procurements. 

DATES: Interested parties should submit 

written comments to the Regulatory 

Secretariat at one of the addressees 

shown below on or before April 23, 

2012 to be considered in the formation 

of the final rule. 

ADDRESSES: Submit comments in 

response to FAR case 2011–011 by any 

of the following methods: 

• Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

inputting ‘‘FAR Case 2011–011’’ under 

the heading ‘‘Enter Keyword or ID’’ and 

selecting ‘‘Search.’’ Select the link 

‘‘Submit a Comment’’ that corresponds 

with ‘‘FAR Case 2011–011.’’ Follow the 

instructions provided at the ‘‘Submit a 

Comment’’ screen. Please include your 

name, company name (if any), and 

‘‘FAR Case 2011–011’’ on your attached 

document. 

• Fax: (202) 501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(MVCB), Attn: Hada Flowers, 1275 First 


wreier-aviles on DSK5TPTVN1PROD with PROPOSALS
10462 Federal Register / Vol. 77, No. 35 / Wednesday, February 22, 2012 / Proposed Rules 

Street NE., 7th Floor, Washington, DC 

20417. 

Instructions: Please submit comments 

only and cite FAR Case 2011–011, in all 

correspondence related to this case. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Edward N. Chambers, Procurement 

Analyst, at (202) 501–3221 for 

clarification of content. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat at (202) 501–4755. Please 

cite FAR Case 2011–011. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA are proposing 

to revise the FAR to implement a policy 

that imposes on any foreign person that 

receives a specified Federal 

procurement payment a tax equal to 2 

percent of the amount of such specified 

Federal procurement payment. 

Additionally, the law stipulates that no 

funds are to be disbursed to any foreign 

contractor in order to reimburse the tax 

imposed (26 U.S.C. 5000C Note). 

The James Zadroga 9/11 Health and 

Compensation Act of 2010 (Pub. L. 111– 

347) was signed into law and effective 

on January 2, 2011. Section 301 of the 

law amends the Internal Revenue Code 

of 1986 by adding a new Section 5000C, 

Imposition of tax on certain foreign 

procurements (26 U.S.C. 5000C). This 

new section imposes on any foreign 

person that receives a specified Federal 

procurement payment a tax equal to 2 

percent of the amount of such specified 

Federal procurement payment. 

Additionally, the law stipulates that no 

funds are to be disbursed to any foreign 

contractor in order to reimburse the tax 

imposed (26 U.S.C. 5000C Note). 

II. Discussion and Analysis 

To comply with the law, the FAR 

Council is proposing to amend FAR 

31.205–41 to inform the Government 

and contractors that the costs of the 2 

percent tax are not allowable, and at 

FAR 52.229–3, 52.229–4, 52.229–6 and 

52.229–7, to provide that the costs for 

the 2 percent tax are not included in 

foreign fixed-price contracts and foreign 

fixed-price contracts with foreign 

governments. The law states that it 

‘‘shall be applied in a manner consistent 

with international agreements.’’ The law 

states that the 2 percent excise tax is 

applied to foreign persons that receive 

Federal procurement payments 

pursuant to a contract with the 

Government of the United States for the 

provision of goods, if such goods are 

manufactured or produced in a covered 

country, or for the provision of services 

if those services are provided in a 

covered country. ‘‘Covered country’’ 

means a country that is not a country 

that is party to an international 

procurement agreement with the United 

States. ‘‘Foreign person’’ means any 

person (including any individual, 

partnership, corporation, or other form 

of association) other than a United 

States person. The law applies to 

contracts entered into on or after 

January 2, 2011. The procedures for 

withholding this 2 percent tax are being 

handled in a separate FAR case. 

III. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is a significant 

regulatory action and, therefore, was 

subject to review under Section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

IV. Regulatory Flexibility Act 

The change may have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 

Act 5 U.S.C. 601, et seq. The Initial 

Regulatory Flexibility Analysis (IRFA) is 

summarized as follows: 

At this time an estimate of the number of 

small entities to which this rule will apply 

is not available. The 2 percent excise tax is 

only applied to foreign persons that receive 

Federal procurement payments pursuant to a 

contract with the Government of the United 

States for the provision of goods, if such 

goods are manufactured or produced in a 

covered country, or for the provision of 

services if those services are provided in a 

covered country. ‘‘Foreign person’’ means 

any person (including any individual, 

partnership, corporation, or other form of 

association) other than a United States 

person. ‘‘Covered country’’ means a country 

that is not a country that is party to an 

international procurement agreement with 

the United States. 

The Regulatory Secretariat has 

submitted a copy of the IRFA to the 

Chief Counsel for Advocacy of the Small 

Business Administration. A copy of the 

IRFA may be obtained from the 

Regulatory Secretariat. DoD, GSA and 

NASA invite comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. 

DoD, GSA, and NASA will also 

consider comments from small entities 

concerning the existing regulations in 

subparts affected by this rule in 

accordance with 5 U.S.C. 610. Interested 

parties must submit such comments 

separately and should cite 5 U.S.C. 610 

(FAR Case 2011–011) in 

correspondence. 

V. Paperwork Reduction Act 

The rule does not contain any 

information collection requirements that 

require the approval of the Office of 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). 

List of Subjects in 48 CFR Parts 31 and 

52 

Government procurement. 

Dated: February 14, 2012. 

Laura Auletta, 

Director, Office of Governmentwide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Governmentwide Policy. 

Therefore, DoD, GSA, and NASA 

propose amending 48 CFR parts 31 and 

52 as set forth below: 

1. The authority citation for 48 CFR 

parts 31 and 52 continues to read as 

follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

PART 31—CONTRACT COST 

PRINCIPLES AND PROCEDURE 

2. Amend section 31.205–41 by 

adding paragraph (b)(8) to read as 

follows: 

31.205–41 Taxes. 

* * * * * 

(b) * * * 

(8) Any tax imposed under 26 U.S.C. 

5000C. 

* * * * * 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

3. Amend section 52.229–3 by 

revising the date of the clause and 

paragraph (b) to read as follows: 

52.229–3 Federal, State, and Local Taxes. 

* * * * * 

Federal, State, and Local Taxes (date) 

* * * * * 

(b)(1) The contract price includes all 

applicable Federal, State, and local 


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Federal Register / Vol. 77, No. 35 / Wednesday, February 22, 2012 / Proposed Rules 10463 

taxes and duties, except as provided in 

subparagraph (b)(2)(i) of this clause. 

(2) Taxes imposed under 26 U.S.C. 

5000C may not be— 

(i) Included in the contract price; nor 

(ii) Reimbursed. 

* * * * * 

4. Amend section 52.229–4 by 

revising the date of the clause and 

paragraph (b) to read as follows: 

52.229–4 Federal, State, and Local Taxes 

(State and Local Adjustments). 

* * * * * 

Federal, State, and Local Taxes (state 

and local adjustments) (Date) 

* * * * * 

(b)(1) Unless otherwise provided in 

this contract, the contract price includes 

all applicable Federal, State, and local 

taxes and duties, except as provided in 

subparagraph (b)(2)(i) of this clause. 

(2) Taxes imposed under 26 U.S.C. 

5000C may not be— 

(i) Included in the contract price; nor 

(ii) Reimbursed. 

* * * * * 

5. Amend section 52.229–6 by: 

(a) Revising the date of the clause; 

(b) Redesignating paragraph (c) as 

(c)(1); removing from the newly 

designated paragraph (c)(1) ‘‘States.’’ 

and adding ‘‘States, except as provided 

in subparagraph (c)(2) of this clause.’’ in 

its place; 

(c) Adding a new paragraph (c)(2); 

(d) Redesignating paragraph (d) as 

(d)(1); removing from the newly 

designated paragraph (d)(1) ‘‘The 

contract price shall’’ and adding 

‘‘Except as provided in subparagraph 

(d)(2) of this clause, the contract price 

shall’’ in its place; and 

(e) Adding a new paragraph (d)(2). 

The revised and newly added text 

reads as follows: 

52.229–6 Taxes-Foreign Fixed—Price 

Contracts. 

* * * * * 

Taxes-Foreign Fixed-Price Contracts 

(Date) 

* * * * * 

(c)(1) * * * 

(2) Taxes imposed under 26 U.S.C. 

5000C may not be— 

(i) Included in the contract price; nor 

(ii) Reimbursed. 

(d)(1) * * * 

(2) The contract price may not be 

increased to offset taxes imposed under 

26 U.S.C. 5000c. 

* * * * * 

6. Amend section 52.229–7 by: 

a. Revising the date of the clause; 

b. Redesignating paragraph (b) as 

(b)(1); and 

c. Adding a new paragraph (b)(2). 

The revised and newly added text 

reads as follows: 

52.229–7 Taxes-Foreign Fixed-Price 

Contract With Foreign Governments. 

* * * * * 

Taxes-Foreign Fixed-Price Contracts 

With Foreign Governments (Date) 

* * * * * 

(b) * * * 

(2) Taxes imposed under 26 U.S.C. 

5000c may not be included in the 

contract price. 

* * * * * 

[FR Doc. 2012–3905 Filed 2–21–12; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 648 

[Docket No. 120208116–2115–01] 

RIN 0648–BB83 

Fisheries of the Northeastern United 

States; Proposed 2012–2013 Northeast 

Skate Complex Fishery Specifications 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Proposed rule; request for 

comments. 

SUMMARY: This rule proposes catch 

limits and associated measures for the 

Northeast Skate Complex Fishery for the 

2012–2013 fishing years. The proposed 

action was developed by the New 

England Fishery Management Council 

pursuant to the provisions of the 

Northeast Skate Complex Fishery 

Management Plan. The proposed catch 

limits are supported by the best 

available scientific information and 

reflect recent increases in skate biomass. 

DATES: Public comments must be 

received no later than 5 p.m., eastern 

standard time, on March 23, 2012. 

ADDRESSES: An environmental 

assessment (EA) was prepared that 

describes the proposed action and other 

considered alternatives, and provides a 

thorough analysis of the impacts of the 

proposed measures and alternatives. 

Copies of the EA and the Initial 

Regulatory Flexibility Analysis (IRFA), 

are available on request from Paul J. 

Howard, Executive Director, New 

England Fishery Management Council, 

50 Water Street, Newburyport, MA 

01950. These documents are also 

available online at http:// 

www.nefmc.org. 

You may submit comments, identified 

by NOAA–NMFS–2012–0015, by any 

one of the following methods: 

• Electronic Submissions: Submit all 

electronic public comments via the 

Federal e-Rulemaking Portal 

www.regulations.gov. To submit 

comments via the e-Rulemaking Portal, 

first click the ‘‘Submit a Comment’’ 

icon, and then enter ‘‘NOAA–NMFS– 

2012–0015’’ in the keyword search. 

Locate the document you wish to 

comment on from the resulting list, and 

click on the ‘‘Submit a Comment’’ icon 

on the right of that line. 

• Fax: (978) 281–9135, Attn: Tobey 

Curtis. 

• Mail: Daniel Morris, Acting 

Regional Administrator, NMFS, 

Northeast Regional Office, 55 Great 

Republic Drive, Gloucester, MA 01930. 

Mark the outside of the envelope, 

‘‘Comments on Skate Specifications.’’ 

Instructions: Comments must be 

submitted by one of the above methods 

to ensure that the comments are 

received, documented, and considered 

by NMFS. Comments sent by any other 

method, to any other address or 

individual, or received after the end of 

the comment period, may not be 

considered. All comments received are 

a part of the public record and will 

generally be posted for public viewing 

on www.regulations.gov. All personal 

identifying information (e.g., name, 

address, etc.) submitted voluntarily by 

the sender will be publicly accessible. 

Do not submit confidential business 

information, or otherwise sensitive or 

protected information. NMFS will 

accept anonymous comments (enter ‘‘N/ 

A’’ in the required fields if you wish to 

remain anonymous). Attachments to 

electronic comments will be accepted in 

Microsoft Word or Excel, WordPerfect, 

or Adobe PDF file formats only. 

FOR FURTHER INFORMATION CONTACT: 

Tobey Curtis, Fishery Policy Analyst, 

(978) 281–9273; fax: (978) 281–9135. 

SUPPLEMENTARY INFORMATION: 

Background 

The New England Fishery 

Management Council (Council) is 

responsible for developing management 

measures for skate fisheries in the 

northeastern U.S. through the Northeast 

Skate Complex Fishery Management 

Plan (Skate FMP). Seven skate species 

are managed under the Skate FMP: 

Winter, little, thorny, barndoor, smooth, 

clearnose, and rosette. The Council’s 

Scientific and Statistical Committee 

(SSC) reviews the best available 

information on the status of skate 


wreier-aviles on DSK5TPTVN1PROD with PROPOSALS