Federal Register / Vol. 75, No. 164 / Wednesday, August 25, 2010 / Rules and Regulations 52267 

DATES: This correction is effective on 

August 25, 2010, and is applicable on 

July 30, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Zoran Stojanovic, (202) 622–3980 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9495) that 

are the subject of this document are 

under section 1397E of the Internal 

Revenue Code. 

Need for Correction 

As published, the final regulations 

(TD 9495) contain an error that may 

prove to be misleading and is in need 

of clarification. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

■ Accordingly, 26 CFR part 1 is 

corrected by making the following 

correcting amendment: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 2. Section 1.1397E–1 is amended 

by revising the first sentence of 

paragraph (m)(3) to read as follows: 

§ 1.1397E–1 Qualified zone academy 

bonds. 

* * * * * 

(m) * * * 

(3) * * * Except to the extent 

inconsistent with the successor 

statutory provisions for QZABs in 

sections 54A and 54E or applicable 

public administrative or regulatory 

guidance under those provisions and 

except as otherwise provided in this 

paragraph (m)(3), issuers and taxpayers 

may apply these regulations to QZABs 

issued under sections 54A and 54E that 

are sold after October 3, 2008. * * * 

LaNita Van Dyke, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Associate Chief 

Counsel (Procedure and Administration). 

[FR Doc. C1–2010–21045 Filed 8–24–10; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9495] 

RIN 1545–BC61 

Qualified Zone Academy Bonds; 

Obligations of States and Political 

Subdivisions; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correction to final regulations. 

SUMMARY: This document contains a 

correction to final regulations (TD 9495) 

that were published in the Federal 

Register on Friday, July 30, 2010 (75 FR 

44901) providing guidance to State and 

local governments that issue qualified 

zone academy bonds and to banks, 

insurance companies, and other 

taxpayers that hold those bonds on the 

program requirements for qualified zone 

academy bonds. 

DATES: This correction is effective on 

August 25, 2010, and is applicable on 

July 30, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Zoran Stojanovic, (202) 622–3980 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9495) that 

are the subject of this document are 

under section 1397E of the Internal 

Revenue Code. 

Need for Correction 

As published, the final regulations 

(TD 9495) contain an error that may 

prove to be misleading and is in need 

of clarification. 

Correction of Publication 

■ Accordingly, the publication of the 

final regulations (TD 9495) which were 

the subject of FR Doc. 2010–18678, is 

corrected as follows: 

■ On page 44903, column 1, in the 

preamble, under the paragraph heading 

‘‘Effective/Applicability Dates’’, lines 2 

and 3 from the last paragraph of the 

column, the language ‘‘Act, effective for 

QZABs that are sold on or after October 

3, 2008, section 1397E’’ is corrected to 

read ‘‘Act, effective for QZABs that are 

sold after October 3, 2008, section 

1397E’’. 

LaNita Van Dyke, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Associate Chief 

Counsel (Procedure and Administration). 

[FR Doc. C1–2010–21046 Filed 8–24–10; 8:45 am] 

BILLING CODE 4830–01–P 

LIBRARY OF CONGRESS 

Copyright Office 

37 CFR Part 201 

[Docket No. 2005–5] 

Waiver of Statement of Account Filing 

Deadline for the 2010/1 Period 

AGENCY: Copyright Office, Library of 

Congress. 

ACTION: Extension of Cable Statement of 

Account Filing Deadline 

SUMMARY: The Copyright Office extends 

the deadline for the filing of the 2010/ 

1 cable statements of account to 

September 29, 2010. In granting the 

extension, the Office waives the filing 

requirements under Section 201.17(c)(1) 

of its rules. The passage of the Satellite 

Television Extension and Localism Act 

of 2010 (STELA) and the subsequent 

work by the Office to revise the cable 

statements of account, in light of 

STELA(s amendments to the Copyright 

Act, have impaired the timely 

availability of the on-line forms cable 

operators use to pay their royalty fees. 

These circumstances will make it 

extremely difficult for many cable 

operators to comply with the current 

deadline. For these reasons, therefore, 

the Office deems the extension 

necessary and in the public interest. 

EFFECTIVE DATES: August 25, 2010. 

FOR FURTHER INFORMATION CONTACT: Ben 

Golant, Assistant General Counsel, and 

Tanya M. Sandros, Deputy General 

Counsel, Copyright GC/I&R, P.O. Box 

70400, Washington, DC 20024. 

Telephone: (202) 707–8380. Telefax: 

(202) 707–8366. 

SUPPLEMENTARY INFORMATION: Section 

111 of the Copyright Act (‘‘Act’’), title 17 

of the United States Code (‘‘Section 

111’’), provides cable operators with a 

statutory license to retransmit a 

performance or display a work 

embodied in a primary transmission 

made by a television station licensed by 

the Federal Communications 

Commission (‘‘FCC’’). Cable systems that 

retransmit broadcast signals in 

accordance with the provisions 

governing the statutory license set forth 

in Section 111 are required to pay 

royalty fees to the Copyright Office 

(‘‘Office’’). Payments made under the 

cable statutory license are remitted 

semi–annually to the Office which 

invests the royalties in United States 

Treasury securities pending distribution 

of these funds to those copyright owners 

who are entitled to receive a share of the 

fees. 

Congress recently passed the Satellite 

Television Extension and Localism Act 

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52268 Federal Register / Vol. 75, No. 164 / Wednesday, August 25, 2010 / Rules and Regulations 

1One of STELA‘s principal purposes was to 

reauthorize the satellite carrier distant broadcast 

signal license for another five years. Congress also 

amended the licenses to take into account the 

recent digital broadcast television transition and the 

ability of digital television stations to split their 

signal into several sub–channels (i.e., 

‘‘multicasting’’). 

2There are two types of Statement of Account 

forms. The Form SA1–2 is for smaller cable 

operators (cable television systems whose 

semiannual gross receipts are less than $527,600). 

The Form SA3 is for larger cable operators (cable 

television systems whose semiannual gross receipts 

are $527,600 or more). 

3The Office receives about 4,800 statement of 

account forms from cable operators each accounting 

period. 

4Gralin is a specialty software company, 

unaffiliated with the government, that custom 

designs ‘‘filler’’ forms for cable operators and other 

businesses. Gralin touts the following benefits of 

using its SOA software: (1) generates a single 

database containing information for all cable 

system‘s Statement of Account information; (2) 

allows editing of data for subsequent filings; (3) 

performs the necessary royalty fee calculations for 

short and long forms; (4) available for use on an 

unlimited number of computers in a single location; 

(5) database may be located on a server accessible 

by all system users at a single location; and (6) 

prints the cable system‘s Statement of Account on 

images of the Copyright Office prescribed forms. 

See http://www.gralin.net (Last accessed on August 

13, 2010). 

5Letter from Diane Burstein, Deputy General 

Counsel, NCTA, to Marybeth Peters, Register of 

Copyrights, dated August 12, 2010. 

6Id. It appears that NCTA is referring to Gralin 

without stating so directly. 

7Id. 

of 2010 (‘‘STELA‘‘), Pub. L. No. 111–175 

(2010). STELA amended the cable 

statutory license found in Section 111 of 

the Copyright Act as well as the distant 

and local satellite licenses found in 

Sections 119 and 122, respectively.1

Among other updates, the new law 

revised the rates for the cable 

retransmission of distant broadcast 

signals and changed the method for 

calculating royalty fees. Cable operators 

now pay royalties on a ‘‘community–by– 

community‘‘ basis (that is, according to 

‘‘subscriber groups’’) rather than on a 

system–wide basis as had been the case 

before STELA amended Section 111(d) 

of the Act. In addition, STELA now 

requires cable operators to pay for the 

retransmission of distant multicast 

streams in certain instances. STELA also 

broadened the definition of ‘‘local 

service area’’ found in Section 111(f) of 

the Act to accommodate a digital 

television station‘s technical service 

area. The President signed STELA on 

May 27, 2010, with a retroactive 

effective date of February 27, 2010. 

Cable operators must pay royalties 

under the Section 111 license on a 

semi–annual basis using a Statement of 

Account (‘‘SOA’’) form2 developed by 

the Office.3 Section 111 does not 

establish a specific deadline upon 

which a cable operator must file its SOA 

with the Office. Instead, Congress had 

left it to the Office to implement a filing 

schedule to fulfill the mandates found 

in the statute. See 37 CFR 201.17(c)(1). 

Cable operators that file their statement 

of accounts late must add interest to 

their royalty payment. See 37 CFR 

201.17(i)(4). 

The SOAs are available in a print 

format, a PDF format, and a software 

‘‘fill–in’’ format created by Gralin 

Associates, Inc.4 The first two forms are 

freely available from the Office either by 

mail or by accessing them via the web 

at copyright.gov. Cable operators have to 

pay Gralin for the right to use its 

specialized software. It is estimated that 

about 40%–45% of all cable statement 

of account forms filed with the Office 

have been prepared using the Gralin 

form since the software was first made 

available in1985. 

The Office recently revised the cable 

statement of account forms in light of 

the recent STELA amendments to 

Section 111. The new SA3 form now 

reflects the royalty rate adjustments 

found in STELA and includes, inter 

alia, modifications to accommodate the 

reporting of subscriber groups and 

multiple channel line–ups and the 

retransmission of multicast streams. The 

paper and PDF versions of the form 

have been available to cable operators 

since the second week in July. However, 

the Gralin SOA ‘‘fill–in’’ form, which is 

usually released at or about the same 

time as the paper version in years past, 

was not made publicly available until 

August 6, 2010. This form was delayed 

because it had to undergo performance 

tests over a period spanning several 

days. As such, cable operators who have 

relied on the Gralin form have been 

unable to access it or use it until very 

recently. 

NCTA request. On August 12, 2010, 

the National Cable and 

Telecommunications Association 

(‘‘NCTA’’) filed a letter with the Office 

seeking an extension, for 30 days, of the 

filing deadline for cable copyright 

Statements of Account covering the first 

accounting period of 2010.5

NCTA explains that Section 111(d)(2) 

of the Act requires cable operators to file 

semi–annual Statements of Account. It 

then states that Section 201.17(c)(1) of 

the Office‘s regulations provide that 

those filings ‘‘shall be deposited in the 

Copyright Office, together with the total 

royalty fee for such accounting periods 

as prescribed by Section 111(d)(1) (B), 

(C), or (D) of title 17, by not later than 

the immediately following August 29, if 

the SOA covers the January 1 through 

June 30 accounting period....’’ It also 

notes that Section 201.17(i)(4) of the 

Office‘s regulations state that royalty fee 

payments ‘‘submitted as a result of late 

or amended filings’’ must include 

interest. NCTA requests that the Office 

issue a waiver so that SOAs currently 

due August 30, 2010, instead would be 

due September 29, 2010. NCTA adds 

that pursuant to its waiver request, SOA 

filings made by that date would be 

considered timely and no interest would 

be assessed, but that SOA filings made 

after September 29, 2010, would be 

assessed interest from September 30, 

2010, until the filing date. 

NCTA comments that this one–time 

waiver is warranted in light of the 

changes to the Statement of Account 

forms and associated calculations 

resulting from Congress’s adoption of 

STELA leaving little time for making the 

necessary changes to the SOA forms that 

must be used for the first accounting 

period of 2010. It adds that many cable 

operators that file SOAs for multiple 

cable systems use commercial software 

to facilitate those filings. It remarks that 

this software was not approved by the 

Office for use until August 6, 2010. 

According to NCTA, even after the 

software‘s release, cable operators using 

the software have discovered problems 

that have delayed their ability to input 

necessary data.6

NCTA asserts that granting the waiver 

will be in the public interest. It states 

that additional time will help operators 

accurately complete their SOA filings, 

thus reducing the need to file 

supplemental or amended SOAs. It adds 

that providing sufficient time so 

operators can make that single filing 

will also alleviate burdens on the Office. 

NCTA asserts that it is authorized to 

represent that Program Suppliers, Joint 

Sports Claimants, Commercial 

Television Claimants, Public Television 

Claimants, Music Claimants, Devotional 

Claimants, National Public Radio and 

Canadian Claimants (collectively, the 

‘‘Phase I Claimants’’) do not oppose the 

granting by the Copyright Office of this 

one–time waiver.7

Discussion. We grant NCTA’s request 

to waive the filing requirement under 

Section 201.17(c)(1) of the Office’s rules 

and extend the filing deadline to 

Septemeber 29, 2010. We recognize that 

the passage of STELA in the late Spring 

of this year, and the subsequent work by 

the Office to revise the cable statements 

of account, have impaired the timely 

availability of the forms cable operators 

use to pay their royalty fees, especially 

the revised Gralin form. While we 

recognize that the paper and PDF 

versions of the SOA have been available 

since July, many large and small cable 

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Federal Register / Vol. 75, No. 164 / Wednesday, August 25, 2010 / Rules and Regulations 52269 

8Gralin has reported that the glitches in its 

software have led, in limited instances, to 

difficulties in reporting certain data points and 

printing of the SA3 form. The Office is currently 

working with Gralin to resolve these glitches. 

9See Filing of Claims for DART Royalty Funds, 68 

FR 74481 (Dec. 24, 2003), citing Northeast Cellular 

Telephone Company v. FCC, 897 F.2d 1164, 1166 

(D.C. Cir. 1990) (holding that a waiver of an 

agency‘s rules is ‘‘appropriate only if special 

circumstances warrant a deviation from the general 

rule and such deviation will serve the public 

interest.’’). 

operators have continued to rely on the 

Gralin form to fulfill their SOA 

reporting and filing requirement under 

Section 111. Given that the Gralin form 

had been made available well in 

advance of the first day of the 60–day 

filing period in years past, operators had 

reasonably expected that it would be 

ready to use at or about the same time 

this year. However, through no fault of 

their own, the cable operators relying on 

Gralin did not have access to the revised 

Gralin form until August 6 this year, 

reducing to about three weeks the time 

they would have had to process and file 

their forms in the absence of a waiver. 

We recognize that complying with the 

existing deadline would be an arduous, 

and perhaps insurmountable task, for 

many cable operators particularly those 

who would have to file hundreds of 

forms during these last three weeks. 

Further, as NCTA indicates, there are 

still minor problems with the Gralin 

software that have been discovered after 

its official release on August 6th. Cable 

operators should not be held 

accountable for matters beyond their 

control. The grant of the requested 

waiver will permit Gralin an additional 

amount of time to fix the problems with 

its software so that the SOA filings will 

be both accurate and complete.8

We also agree with NCTA when it 

states that additional time will help 

operators accurately complete their SOA 

filings, thus reducing the need to file 

supplemental or amended SOAs. It is 

evident that providing sufficient time so 

operators can make that single filing 

will alleviate burdens on the cable 

industry as well as the Copyright Office 

and produce more accurate filings. In 

this context, a waiver will serve the 

interest of the public because it will 

reduce unnecessary paperwork and 

further the efficient administration and 

processing of the incoming SOAs. 

NCTA has also indicated that 

copyright owner groups would not 

oppose a thirty day extension of the 

filing deadline, and the Office has 

received confirmation from 

representatives of the copyright owner 

groups that this is the case. On this 

point, we note that the Office is waiving 

a procedural deadline and not a 

substantive royalty requirement. Cable 

operators will still be paying the 

royalties that are due under the Section 

111 framework, albeit under a modified 

timeline. Thus, in light of the problems 

associated with providing forms and the 

lack of any opposition from those who 

have a direct stake in the filing of the 

statements of account and the timely 

receipt of royalty payments, the Office 

perceives no reason to deny the request. 

Finally, we note that waivers are 

rarely granted by the Office. However, 

the action taken today is necessary 

because of unique, extenuating 

circumstances.9

We hereby waive Section 201.17(c)(1) 

and extend the date for filing cable 

statements of account to September 29, 

2010. Accordingly, interest will be 

assessed pursuant to Section 

201.17(i)(4) for late payments made after 

September 29, 2010. 

Dated: August 18,2010 

Marybeth Peters, 

Register of Copyrights, 

U.S. Copyright Office. 

[FR Doc. 2010–20956 Filed 8–24–10; 8:45 am] 

BILLING CODE 1410–30–S 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 180 

[EPA–HQ–OPP–2010–0429; FRL–8841–2] 

Acetic Acid Ethenyl Ester, Polymer 

With Oxirane; Tolerance Exemption 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: This regulation establishes an 

exemption from the requirement of a 

tolerance for residues of acetic acid 

ethenyl ester, polymer with oxirane; 

when used as an inert ingredient in a 

pesticide chemical formulation under 

40 CFR 180.960. BASF Corporation 

submitted a petition to EPA under the 

Federal Food, Drug, and Cosmetic Act 

(FFDCA), requesting an exemption from 

the requirement of a tolerance. This 

regulation eliminates the need to 

establish a maximum permissible level 

for residues of acetic acid ethenyl ester, 

polymer with oxirane on food or feed 

commodities. 

DATES: This regulation is effective 

August 25, 2010. Objections and 

requests for hearings must be received 

on or before October 25, 2010, and must 

be filed in accordance with the 

instructions provided in 40 CFR part 

178 (see also Unit I.C. of the 

SUPPLEMENTARY INFORMATION). 

ADDRESSES: EPA has established a 

docket for this action under docket 

identification (ID) number EPA–HQ– 

OPP–2010–0429. All documents in the 

docket are listed in the docket index 

available at http://www.regulations.gov. 

Although listed in the index, some 

information is not publicly available, 

e.g., Confidential Business Information 

(CBI) or other information whose 

disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, is not placed on 

the Internet and will be publicly 

available only in hard copy form. 

Publicly available docket materials are 

available in the electronic docket at 

http://www.regulations.gov, or, if only 

available in hard copy, at the OPP 

Regulatory Public Docket in Rm. S– 

4400, One Potomac Yard (South Bldg.), 

2777 S. Crystal Dr., Arlington, VA. The 

Docket Facility is open from 8:30 a.m. 

to 4 p.m., Monday through Friday, 

excluding legal holidays. The Docket 

Facility telephone number is (703) 305– 

5805. 

FOR FURTHER INFORMATION CONTACT: 

Deirdre Sunderland, Registration 

Division (7505P), Office of Pesticide 

Programs, Environmental Protection 

Agency, 1200 Pennsylvania Ave., NW., 

Washington, DC 20460–0001; telephone 

number: (703) 603–0851; e-mail address: 

sunderland.deirdre@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. General Information 

A. Does this Action Apply to Me? 

You may be potentially affected by 

this action if you are an agricultural 

producer, food manufacturer, or 

pesticide manufacturer. Potentially 

affected entities may include, but are 

not limited to: 

• Crop production (NAICS code 111). 

• Animal production (NAICS code 

112). 

• Food manufacturing (NAICS code 

311). 

• Pesticide manufacturing (NAICS 

code 32532). 

This listing is not intended to be 

exhaustive, but rather provides a guide 

for readers regarding entities likely to be 

affected by this action. Other types of 

entities not listed in this unit could also 

be affected. The North American 

Industrial Classification System 

(NAICS) codes have been provided to 

assist you and others in determining 

whether this action might apply to 

certain entities. If you have any 

questions regarding the applicability of 

this action to a particular entity, consult 

the person listed under FOR FURTHER

INFORMATION CONTACT. 

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