58652 Federal Register / Vol. 65, No. 191 / Monday, October 2, 2000 / Rules and Regulations

redemption did not become more likely than

not to occur within the 20-year period that

begins on January 1, 2000 (which is the issue

date of the T preferred stock) as a result of

the exchange, under paragraph (b) of this

section, the P preferred stock received by A

is treated as QPS. Thus, the P preferred stock

received is not ‘‘other property’’ within the

meaning of section 356(a)(1)(B).

Example 3. The facts are the same as in

Example 2, except that, in addition, in 2010,

pursuant to a recapitalization of P under

section 368(a)(1)(E), A exchanges the P

preferred stock above for P NQPS that

permits the holder to require P to redeem the

stock in 2020. Under paragraph (b) of this

section, the P preferred stock surrendered by

A is treated as QPS. Because the P preferred

stock received by A in the recapitalization is

not substantially identical to the P preferred

stock surrendered, the P preferred stock

received by A is not treated as QPS. Thus,

the P preferred stock received is ‘‘other

property’’ within the meaning of section

356(a)(1)(B).

Example 4. T issues preferred stock to A

on January 1, 2000 that permits the holder to

require T to redeem the stock on January 1,

2018, or at any time thereafter, but which is

not NQPS solely because, as of the issue date,

the holder’s right to redeem is subject to a

contingency that makes remote the likelihood

of redemption on or before January 1, 2020.

In 2007, pursuant to a reorganization under

section 368(a)(1)(A) in which T merges into

P, A surrenders the T preferred stock in

exchange for P preferred stock with terms

that are identical to the terms of the T

preferred stock. Immediately before the

exchange, the contingency to which the

holder’s right to cause redemption of the T

stock is subject makes remote the likelihood

of redemption before January 1, 2020, but the

P stock, although subject to the same

contingency, is more likely than not to be

redeemed before January 1, 2020. Because, as

a result of the exchange of T stock for P stock,

the exercise of the redemption right became

more likely than not to occur within the 20-

year period beginning on the issue date of the

T preferred stock, the P preferred stock

received by A is not substantially identical to

the T stock surrendered, and is not treated as

QPS. Thus, the P preferred stock received is

‘‘other property’’ within the meaning of

section 356(a)(1)(B).

Example 5. The facts are the same as in

Example 4, except that, immediately before

the merger of T into P in 2007, the

contingency to which the holder’s right to

cause redemption of the T stock is subject

makes it more likely than not that the T stock

will be redeemed before January 1, 2020.

Because exercise of the redemption right did

not become more likely than not to occur

within the 20-year period beginning on the

issue date of the T preferred stock as a result

of the exchange, the P preferred stock

received by A is substantially identical to the

T stock surrendered, and is treated as QPS.

Thus, the P preferred stock received is not

‘‘other property’’ within the meaning of

section 356(a)(1)(B).

Example 6. A is an employee of T. In

connection with A’s performance of services

for T, T transfers to A in 2000 an amount of

T common stock that represents reasonable

compensation. The T common stock contains

a term granting A the right to require T to

redeem the common stock, but only upon A’s

separation from service from T. In 2005,

pursuant to a reorganization under section

368(a)(1)(A) in which T merges into P, A

receives, in exchange for A’s T common

stock, P preferred stock granting a similar

redemption right upon A’s separation from

P’s service. Under paragraph (c) of this

section, the P preferred stock received by A

is treated as transferred in connection with

the performance of services (and representing

reasonable compensation) within the

meaning of section 351(g)(2)(C)(i)(II). Thus,

the P preferred stock received by A is QPS.

(f) Effective dates. This section

applies to transactions occurring on or

after October 2, 2000.

Par. 6. Section 1.1036–1 is amended

by adding paragraph (d) to read as

follows:

§ 1.1036–1 Stock for stock of the same

corporation.

* * * * *

(d) Nonqualified preferred stock. See

§ 1.356–7(a) for the applicability of the

definition of nonqualified preferred

stock in section 351(g)(2) for stock

issued prior to June 9, 1997, and for

stock issued in transactions occurring

after June 8, 1997, that are described in

section 1014(f)(2) of the Taxpayer Relief

Act of 1997, Public Law 105–34 (111

Stat. 788, 921).

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Approved: September 25, 2000.

Jonathan Talisman,

Acting Assistant Secretary of the Treasury.

[FR Doc. 00–25258 Filed 9–29–00; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 100

[CGD 05–00–043]

RIN 2115–AE46

Special Local Regulations for Marine

Events; Fountain Power Boats

Offshore Race, Pamlico River,

Washington, North Carolina

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule.

SUMMARY: The Coast Guard is adopting

temporary special local regulations

during the Fountain Power Boats

Offshore Race, to be held October 13, 14

and 15, 2000, on the waters of the

Pamlico River, Washington, North

Carolina. These special local regulations

are necessary to provide for the safety of

life on navigable waters during the

event. This action is intended to restrict

vessel traffic in portions of the Pamlico

River during the event.

DATES: This rule is effective from 6 a.m.

on October 13, 2000, to 5 p.m. on

October 15, 2000.

ADDRESSES: Comments and materials

received from the public as well as

documents indicated in this preamble as

being available in the docket, are part of

docket CGD05–00–043 and are available

for inspection or copying at Commander

(Aoax), Fifth Coast Guard District, 431

Crawford Street, Portsmouth, Virginia

23704–5004, between 9 a.m. and 2 p.m.,

Monday through Friday, except Federal

holidays.

FOR FURTHER INFORMATION CONTACT: S. L.

Phillips, Marine Events Coordinator,

Commander (Aoax), Fifth Coast Guard

District, 431 Crawford Street,

Portsmouth, Virginia 23704–5004,

telephone number (757) 398–6204.

SUPPLEMENTARY INFORMATION:

Regulatory Information

A notice of proposed rulemaking

(NPRM) was not published for this

regulation. Under 5 U.S.C. 553(b)(B), the

Coast Guard finds that good cause exists

for not publishing a NPRM and for

making the rule effective less than 30

days after publication in the Federal

Register. The Coast Guard received

confirmation of the request for special

local regulations on August 24, 2000.

We were notified of the event with

insufficient time to publish a NPRM,

allow for comments, and publish a final

rule prior to the event.

Background and Purpose

On October 13, 14, and 15, 2000,

Fountain Power Boats will sponsor the

Fountain Power Boats Offshore Race, on

the Pamlico River, Washington, North

Carolina. The event will consist of

approximately 50 high speed power

boats racing in heats along a 5 mile oval

course. A fleet of spectator vessels is

anticipated. Due to the need for vessel

control during the event, vessel traffic

will be temporarily restricted to provide

for the safety of participants, spectators

and transiting vessels.

Discussion of Regulations

The Coast Guard is establishing

temporary special local regulations on

specified waters of the Pamlico River.

The temporary special local regulations

will be enforced from 6 a.m. to 5 p.m.

on October 13, 14 and 15, 2000. The

effect will be to restrict general

navigation in the regulated area during

Federal Register / Vol. 65, No. 191 / Monday, October 2, 2000 / Rules and Regulations 58653

the event. Except for persons or vessels

authorized by the Coast Guard Patrol

Commander, no person or vessel may

enter or remain in the regulated area.

The Patrol Commander will allow nonparticipating vessels to transit the

regulated area between races. These

regulations are needed to control vessel

traffic during the event to enhance the

safety of participants, spectators and

transiting vessels.

Regulatory Evaluation

This rule is not a ‘‘significant

regulatory action’’ under section 3(f) of

Executive Order 12866 and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

Order. The Office of Management and

Budget has not reviewed it under that

Order. It is not significant under the

regulatory policies and procedures of

the Department of Transportation (DOT)

(44 FR 11040; February 26, 1979).

We expect the economic impact of

this temporary final rule to be so

minimal that a full Regulatory

Evaluation under paragraph 10e of the

regulatory policies and procedures of

DOT is unnecessary.

Although this regulation prevents

traffic from transiting a portion of the

Pamlico River during the event, the

effect of this regulation will not be

significant due to the limited duration

of the regulation and the extensive

advance notifications that will be made

to the maritime community via the

Local Notice to Mariners, marine

information broadcasts, and area

newspapers, so mariners can adjust

their plans accordingly.

Small Entities

Under the Regulatory Flexibility Act

(5 U.S.C. 601 et seq.), we considered

whether this rule would have a

significant economic impact on a

substantial number of small entities.

The term ‘‘small entities’’ comprises

small businesses, not-for-profit

organizations that are independently

owned and operated and are not

dominant in their fields, and

governmental jurisdictions with

populations of less than 50,000.

The Coast Guard certifies under 5

U.S.C. 605(b) that this rule will not have

a significant economic impact on a

substantial number of small entities.

This rule will affect the following

entities, some of which may be small

entities: the owners or operators of

vessels intending to transit or anchor in

the effected portions of the Pamlico

River during the event.

Although this regulation prevents

traffic from transiting or anchoring in a

portion of the Pamlico River during the

event, the effect of this regulation will

not be significant because of its limited

duration and the extensive advance

notifications that will be made to the

maritime community via the Local

Notice to Mariners, marine information

broadcasts, and area newspapers, so

mariners can adjust their plans

accordingly.

Collection of Information

This rule calls for no new collection

of information under the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501–

3520).

Federalism

We have analyzed this rule under

Executive Order 13132 and have

determined that this rule does not have

implications for federalism under that

Order.

Unfunded Mandates Reform Act

The Unfunded Mandates Reform Act

of 1995 (2 U.S.C. 1531–1538) governs

the issuance of Federal regulations that

require unfunded mandates. An

unfunded mandate is a regulation that

requires a State, local, or tribal

government or the private sector to

incur direct costs without the Federal

Government’s having first provided the

funds to pay those costs. This rule will

not impose an unfunded mandate.

Taking of Private Property

This rule will not effect a taking of

private property or otherwise have

taking implications under Executive

Order 12630, Governmental Actions and

Interference with Constitutionally

Protected Property Rights.

Civil Justice Reform

This rule meets applicable standards

in sections 3(a) and 3(b)(2) of Executive

Order 12988, Civil Justice Reform, to

minimize litigation, eliminate

ambiguity, and reduce burden.

Protection of Children

We have analyzed this rule under

Executive Order 13045, Protection of

Children from Environmental Health

Risks and Safety Risks. This rule is not

an economically significant rule and

does not concern an environmental risk

to health or risk to safety that may

disproportionately affect children.

Environment

We prepared an ‘‘Environmental

Assessment’’ in accordance with

Commandant Instruction M16475.1C

and determined that this rule will not

significantly affect the quality of the

human environment. The

‘‘Environmental Assessment’’ and

‘‘Finding of No Significant Impact’’ is

available in the docket where indicated

under ADDRESSES.

List of Subjects in 33 CFR Part 100

Marine safety, Navigation (water),

Reporting and recordkeeping

requirements, Waterways.

Regulation

For the reasons discussed in the

preamble, the Coast Guard amends Part

100 of Title 33, Code of Federal

Regulations as follows:

PART 100—[AMENDED]

1. The authority citation for Part 100

continues to read as follows:

Authority: 33 U.S.C. 1233 through 1236; 49

CFR 1.46 and 33 CFR 100.35.

2. A temporary § 100.35–T05–043 is

added to read as follows:

§ 100.35–T05–043 Fountain Power Boats

Offshore Race, Pamlico River, Washington,

North Carolina

(a) Definitions—(1) Regulated Area.

The waters of the Pamlico River from

shoreline to shoreline, bounded on the

south by a line running northeasterly

from Hills Point at latitude 35°28′30′′

North, longitude 076°59′20′′ West, to

Broad Creek Point at latitude 33°29′05′′

North, longitude 076°58′50′′ West, and

bounded on the north by the Norfolk

Southern Railroad Bridge. All

coordinates reference Datum NAD 1983.

(2) Coast Guard Patrol Commander.

The Coast Guard Patrol Commander is

a commissioned, warrant, or petty

officer of the Coast Guard who has been

designated by the Commander, Coast

Guard Group Fort Macon.

(3) Official Patrol. The Official Patrol

is any vessel assigned or approved by

Commander, Coast Guard Group Fort

Macon with a commissioned, warrant,

or petty officer of the Coast Guard on

board and displaying a Coast Guard

ensign.

(b) Special Local Regulations. (1)

Except for persons or vessels authorized

by the Coast Guard Patrol Commander,

no person or vessel may enter or remain

in the regulated area.

(2) The operator of any vessel in these

areas shall:

(i) Stop the vessel immediately when

directed to do so by any official patrol.

(ii) Proceed as directed by any official

patrol.

(c) Effective Dates. This section will

be effective from 6 a.m. on October 13,

2000 to 5 p.m. on October 15, 2000.

(d) Enforcement Times. This section

will be enforced from 6 a.m. to 5 p.m.

on October 13, 14 and 15, 2000.

58654 Federal Register / Vol. 65, No. 191 / Monday, October 2, 2000 / Rules and Regulations

Dated: September 15, 2000.

T.C. Paar,

Captain, U.S. Coast Guard, Acting

Commander, Fifth Coast Guard District.

[FR Doc. 00–25269 Filed 9–29–00; 8:45 am]

BILLING CODE 4910–15–U

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 165

[CGD01–00–218]

RIN 2115–AA97

Safety Zone: 2nd Annual Head to the

New River Front Regatta, Hartford,

Connecticut

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule.

SUMMARY: The Coast Guard is

establishing a safety zone for the 2nd

Annual Head to the New River Front

Regatta in the Connecticut River,

Hartford, CT, on October 15, 2000. This

action is needed to protect the vessels

of the regatta, recreational and

commercial vessels and their passengers

and crews during the regatta. Entry into

this safety zone is prohibited unless

authorized by the Captain of the Port.

DATES: This rule is effective from 9 a.m.

October 15, 2000 until 3 p.m., October

15, 2000.

ADDRESSES: Documents relating to this

temporary final rule are available for

inspection or copying at U.S. Coast

Guard Group/Marine Safety Office Long

Island Sound, 120 Woodward Avenue,

New Haven, CT 06512 between 7:30

a.m. and 4 p.m., Monday through

Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT:

MSTC Chris Stubblefield, Command

Center, Long Island Sound at (203) 468–

4428.

SUPPLEMENTARY INFORMATION:

Regulatory Information

We did not publish a notice of

proposed rulemaking (NPRM) for this

regulation. Under 5 U.S.C. 553(b)(B), the

Coast Guard finds that good cause exists

for not publishing a NPRM. The Coast

Guard also finds good cause to make

this rule effective less than 30 days after

publication in the Federal Register. The

sponsor of the event did not provide the

Coast Guard with the final details for

the event in sufficient time to publish a

NPRM or a final rule 30 days in

advance. The delay encountered if

normal rulemaking procedures were

followed would effectively cancel the

event.

Background and Purpose

The River Front Recapture, Inc. is

sponsoring a regatta from Connecticut

River marker #138 to 1 nautical mile

north of the Founders Bridge on October

15, 2000.

Regulatory Evaluation

This rule is not a ‘‘significant

regulatory action’’ under section 3(f) of

Executive Order 12866 and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

Order. The Office of Management and

Budget has not reviewed it under that

Order. It is not ‘‘significant’’ under the

regulatory policies and procedures of

the Department of Transportation (DOT)

(44 FR 11040, February 26, 1979). The

Coast Guard expects the economic

impact of this proposal to be so minimal

that a full Regulatory Evaluation under

paragraph 10e of the regulatory policies

and procedures of DOT is unnecessary.

Although this regulation prevents traffic

from transiting portions of the

Connecticut River, the effect of this

regulation will not be significant for

several reasons: the duration of the

safety zone is limited and the extensive

advance notifications that will be made

to the maritime community via the

Local Notice to Mariners and marine

information broadcasts. Mariners will be

able to adjust their plans accordingly

based on the extensive advance

information. Additionally, this safety

zone has been narrowly tailored to

impose the least impact on maritime

interests yet provide the level of safety

deemed necessary.

Small Entities

Under the Regulatory Flexibility Act

(5 U.S.C. 601–612), we considered

whether this rule would have a

significant economic impact on a

substantial number of small entities.

The term ‘‘small entities’’ comprises

small businesses, not-for-profit

organizations that are independently

owned and operated and are not

dominant in their fields, and

governmental jurisdictions with

populations of less than 50,000.

The Coast Guard certifies under 5

U.S.C. 605(b) that this rule will not have

a significant economic impact on a

substantial number of small entities.

Assistance for Small Entities

Under section 213(a) of the Small

Business Regulatory Enforcement

Fairness Act of 1996 (Pub. L. 104–121),

we offer to assist small entities in

understanding the rule so that they

could better evaluate its effects on them

and participate in the rulemaking

process. Small businesses may send

comments on the actions of Federal

employees who enforce, or otherwise

determine compliance with Federal

regulations to the Small Business and

Agriculture Regulatory Enforcement

Ombudsman and the Regional Small

Business Regulatory Fairness Boards.

The Ombudsman evaluates these

actions annually and rates each agency’s

responsiveness to small business. If you

wish to comment on actions by

employees of the Coast Guard, call 1–

888–REG–FAIR (1–888–734–3247).

Collection of Information

This rule calls for no new collection

of information under the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501–

3520).

Federalism

We have analyzed this rule under

Executive Order 13132 and have

determined that this rule does not have

implications for federalism under that

Order.

Unfunded Mandates Reform Act

The Unfunded Mandates Reform Act

of 1995 (2 U.S.C. 1531–1538) governs

the issuance of Federal regulations that

require unfunded mandates. An

unfunded mandate is a regulation that

requires a State, local, or tribal

government or the private sector to

incur direct costs without the Federal

Government’s having first provided the

funds to pay those unfunded mandate

costs. This rule will not impose an

unfunded mandate.

Taking of Private Property

This rule will not effect a taking of

private property or otherwise have

taking implications under E.O. 12630,

Governmental Actions and Interference

with Constitutionally Protected Property

Rights.

Civil Justice Reform

This rule meets applicable standards

in sections 3(a) and 3(b)(2) of E.O.

12988, Civil Justice Reform, to minimize

litigation, eliminate ambiguity, and

reduce burden.

Protection of Children

We have analyzed this rule under E.O.

13045, Protection of Children from

Environmental Health Risks and Safety

Risks. This rule is not an economically

significant rule and does not concern an

environmental risk to health or risk to

safety that may disproportionately affect

children.

Environment

The Coast Guard considered the

environmental impact of this rule and