15604 Federal Register / Vol. 62, No. 63 / Wednesday, April 2, 1997 / Rules and Regulations

1Pub. L. 104–121, 110 Stat. 857 (1996) (codified

in scattered sections of 5 U.S.C., 15 U.S.C., and as

a note to 5 U.S.C. 601).

2The definition of ‘‘small entity’’ under SBREFA

is the same as the definition of ‘‘small entity’’ under

the Regulatory Flexibility Act, 5 U.S.C. 601 et seq.

(‘‘Reg. Flex. Act’’). SBREFA section 221(1). The Reg.

Flex. Act defines ‘‘small entity’’ to include ‘‘small

business.’’ Pursuant to the Reg. Flex. Act, 5 U.S.C.

601(3), the Commission adopted appropriate

definitions of ‘‘small business’’ for purposes of the

Reg. Flex. Act. See 17 CFR 270.0–10; 17 CFR 275.0–

7; 17 CFR 240.0–10; 17 CFR 230.157; and 17 CFR

250.110. The Commission recently proposed

amendments to these definitions. Definitions of

‘‘Small Business’’ or ‘‘Small Organization’’ Under

the Investment Company Act of 1940, the

Investment Advisers Act of 1940, the Securities

Exchange Act of 1934, and the Securities Act of

1933, Securities Act Rel. No. 7383, 62 FR 4106 (Jan.

28, 1997). The Commission extended the comment

period on the proposed amendments to the

definitions to April 30, 1997, 62 FR 13356 (Mar. 20,

1997).

Based on an analysis of the language and

legislative history of the Regulatory Flexibility Act,

helpful in evaluating the effects of the

rule, and in determining whether

additional rulemaking is required.

Comments are specifically invited on

the overall regulatory, aeronautical,

economic, environmental, and energyrelated aspects of the rule which might

suggest the need to modify the rule.

The Rule

This amendment to part 71 of the

Federal Aviation Regulations establishes

Class E airspace areas at Minot, ND.

Currently, this airspace is designated as

Class D when the associated control

tower is in operation. Nevertheless,

controlled airspace to the surface is

needed for IFR operations at Minot

International Airport, Minot, ND, when

the control towers are closed. The

intended effect of this action is to

provide adequate Class E airspace for

IFR operations at these airports when

these control towers are closed. As

noted in the Airspace Reclassification

Final Rule, published in the Federal

Register on December 17, 1991, airspace

at an airport with a part-time control

tower should be designated as a Class D

airspace area when the control tower is

in operation, and as a Class E airspace

area when the control tower is closed

(56 FR 65645).

The coordinates for this airspace

docket are based on North American

Datum 83. Class E airspace areas

designated as surface areas for airports

are published in Paragraph 6002 of FAA

order 7400.9D dated September 4, 1996,

and effective September 16, 1996, which

is incorporated by reference in 14 CFR

71.1. The Class E airspace designations

listed in this document will be

published subsequently in the Order.

Under the circumstances presented, the

FAA concludes that there is an

immediate need to establish these Class

E airspace areas in order to promote the

safe and efficient handling of air traffic

in these areas. Therefore, I find that

notice and public procedures under 5

U.S.C. 553(b) are impracticable and

contrary to the public interest.

The FAA has determined that this

regulation only involves an established

body of technical regulations for which

frequent and routine amendments are

necessary to keep them operationally

current. It, therefore—(1) is not a

‘‘significant regulatory action’’ under

Executive Order 12866; (2) is not a

‘‘significant rule’’ under DOT

Regulatory Policies and Procedures (44

FR 11034; February 26, 1979); and (3)

does not warrant preparation of a

regulatory evaluation as the anticipated

impact is so minimal. Since this is a

routine matter that will only affect air

traffic procedures and air navigation, it

is certified that this rule will not have

a significant economic impact on a

substantial number of small entities

under the criteria of the Regulatory

Flexibility Act.

List of Subjects in 14 CFR Part 71

Airspace, Incorporation by reference,

Navigation (Air).

Adoption of the Amendment

In consideration of the foregoing, the

Federal Aviation Administration

amends 14 CFR part 71 as follows:

PART 71—[AMENDED]

1. The authority citation for part 71

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113,

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389; 14 CFR 11.69.

§ 71.1 [Amended]

2. The incorporation by reference in

14 CFR 71.1 of the Federal Aviation

Administration Order 7400.9D, Airspace

Designations and Reporting Points,

dated September 4, 1996, and effective

September 16, 1996, is amended as

follows:

Paragraph 6002 Class E airspace areas

designated as a surface area for an airport

* * * * *

AGL ND E4 Minot, ND [Revised]

Minot International Airport, ND

(Lat. 48°15′34′′ N., long. 101°17′14′′ W.)

That airspace extending upward from the

surface within 3.5 miles each side of the

Minot VORTAC 129° radial extending from

the 4.2-mile radius of Minot International

Airport to 7 miles southeast of the VORTAC

and within 3.5 miles each side of the Minot

VORTAC 260° radial, extending from the 4.2-

mile radius of the airport to 7 miles west of

the VORTAC and within 3.5 miles each side

of the Minot VORTAC 327° radial, extending

from the 4.2-mile radius of the airport to 7

miles northwest of the VORTAC and within

3.5 miles each side of the Minot VORTAC

097° radial, extending from the 4.2-mile

radius to 7 miles east of the VORTAC,

excluding the portion which overlies the

Minot AFB, ND, Class D airspace area. This

Class E airspace area is effective during the

specific dates and times established in

advance by a Notice to Airmen. The effective

dates and times will thereafter be

continuously published in the Airport/

Facility Directory.

* * * * *

Issued in Des Plaines, Illinois on March 19,

1997.

Maureen Woods,

Manager, Air Traffic Division.

[FR Doc. 97–8369 Filed 4–1–97; 8:45 am]

BILLING CODE 4910–13–M

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Part 202

[Release Nos. 33–7407; 34–38446; 35–

26695; 39–2349; IC–22587; IA–1624]

Informal Guidance Program for Small

Entities

AGENCY: Securities and Exchange

Commission.

ACTION: Policy statement.

SUMMARY: The Securities and Exchange

Commission is issuing a policy

statement discussing its informal

guidance program for small entities (and

others) as required by the Small

Business Regulatory Enforcement

Fairness Act, Public Law 104–121, 110

Stat. 857 (1996).

DATES: This Policy becomes effective

March 29, 1997.

FOR FURTHER INFORMATION CONTACT: For

General Information: Amy Kroll,

Assistant General Counsel, at (202–942–

0927) or Anne H. Sullivan, Senior

Counsel, at (202–942–0954), Office of

General Counsel. For information from

specific divisions or offices, as follows:

James R. Budge, Special Counsel, at

(202–942–295), Division of Corporation

Finance; Natalie Bej, Special Counsel, at

(202–942–0660), Division of Investment

Management; Gary W. Sutton, Special

Counsel, at (202–942–0073), Division of

Market Regulation; Robert E. Burns,

Chief Counsel, at (202–942–4400),

Office of Chief Accountant.

SUPPLEMENTARY INFORMATION: On March

29, 1996, Congress adopted the Small

Business Regulatory Enforcement

Fairness Act (‘‘SBREFA’’),1 which seeks

to improve the regulatory climate for

small entities 2 by, among other things:
Federal Register / Vol. 62, No. 63 / Wednesday, April 2, 1997 / Rules and Regulations 15605

Congress does not appear to have intended that Act

to apply to natural persons (as opposed to

individual proprietorships) or to foreign entities.

This interpretation has not been tested in court, but

the Commission understands that staff at the Small

Business Administration (‘‘SBA’’) have taken the

same position. Telephone conversation with

Gregory J. Dean, Jr., Assistant Chief Counsel for

Finance and Programs, SBA Office of Advocacy

(Mar. 13, 1997).

3 5 U.S.C. 603(a) and 605(b), codifying SBREFA

sections 241 and 243.

4 5 U.S.C. 611, codifying SBREFA section 242.

5SBREFA section 223.

6SBREFA sections 212, 213, 214 (codified at 15

U.S.C. 648(c)(3)), and 215.

7Both the statutory language and statements

inserted into the Congressional Record after

enactment of SBREFA by the chairmen who

introduced SBREFA stress that, in determining how

to comply with the informal guidance mandate of

SBREFA, agencies may exercise their discretion.

See, e.g., ‘‘Small Business Regulatory Enforcement

Fairness Act—Joint Managers Statement of

Legislative History and Congressional Intent,’’ 142

Cong. Rec. S3243 (daily ed. Mar. 29, 1996)

(hereafter ‘‘Managers Statement’’).

8See, e.g., 17 CFR 202.2 (pre-filing assistance and

interpretive advice); Procedure Applicable to

Requests for No Action or Interpretive Letters,

Securities Act Rel. No. 5127, 36 FR 2600 (Jan. 25,

1971); Procedures Utilized by the Division of

Corporation Finance for Rendering Informal

Advice, Securities Act Rel. No. 6253, 45 FR 72644

(Oct. 28, 1980); Procedures Applicable to Requests

for No-Action or Interpretive Letters, Securities Act

Rel. No. 6269, 45 FR 81917 (Dec. 5, 1980); and

Expedited Publication of Interpretive, No-Action

and Certain Exemption Letters, Securities Act Rel.

No. 6764, 53 FR 12412 (Apr. 14, 1988) (releases on

no-action and interpretive letter procedures). See

also, ‘‘The Work of the SEC’’ and ‘‘Q & A: Small

Business and the SEC.’’

9Seligman, Transformation of Wall Street (2d ed.

1995) at 200–205.

10See, e.g., Securities Act Rel. No. 5125 (Jan. 7,

1971), increasing the maximum amount of offering

price for securities offered under Regulation A.

11House Committee on Interstate and Foreign

Commerce, Report of the Advisory Committee on

Corporate Disclosure to the SEC, H. Doc. No. 29,

95th Cong, 1st Sess. (1977).

12The Commission held town hall meetings in

Los Angeles, California (September 13, 1996);

Minneapolis, Minnesota (September 30, 1996); St.

Louis, Missouri (October 9, 1996); Evanston, Illinois

(October 17, 1996); Ft. Lauderdale, Florida

(November 6, 1996); and Cambridge, Massachusetts

(November 13, 1996).

13These offices receive inquiries from both small

issuers that file documents with the Commission

and small issuers that take advantage of exemptions

under the statutes or safe harbors under

Commission rules.

14SBREFA section 213(a).

15Managers Statement, 142 Cong. Rec. S3243

(daily ed. Mar. 29, 1996). The Committee Chairmen

suggested that, although the legislation did not

mandate changes in current programs at a number

of agencies, including the Commission, these

agencies should consider establishing less formal

means of providing small entities with informal

guidance, such as the use of toll-free telephone

numbers. The Committees apparently were unaware

at the time of these comments that since October

1994 the Commission has had a toll-free number for

public use, 800–SEC–0330.

• Expanding the extent to which the

rule-making process must include

evaluation of the impact of proposed

rules and rule changes on small

entities; 3

• Expanding the rights of action for

small businesses to seek judicial review

of rules impacting small entities; 4

• Requiring agencies to establish

small entity penalty reduction or waiver

policies; 5 and

• Directing agencies to expand their

efforts to provide formal and informal

guidance to small entities.6

This release sets out the

Commission’s informal guidance

program for small entities, as required

by SBREFA. The Commission has

reviewed the various ways it provides

informal compliance guidance to

determine whether it effectively

answers ‘‘inquiries of small entities

seeking information on and advice

about regulatory compliance,’’ and

‘‘utiliz[es] existing functions and

personnel of the agency to the extent

practicable.’’ 7

From the time the Commission was

created, its staff has provided the public

with a wide range of informal guidance

regarding securities regulation.

Commission staff provides informal

guidance to members of the public by

telephone and no-action and

interpretive letters, described in detail

below. In addition, the Commission, or

the staff by delegation, may issue

exemptions from certain statutory and

regulatory requirements. From time to

time, the Commission has issued

releases describing these sources of

informal guidance. The Commission

also has designated small entity

compliance guides that also describe

these sources of informal guidance.8

The Commission’s formal and

informal efforts on behalf of small

business date from 1936, when the

Commission adopted Regulation A, an

exemption from registration for certain

small business offerings. Chairman

William O. Douglas’ efforts on behalf of

small businesses in the securities

markets were a precursor to the creation

of the Small Business Administration in

1958.9 Since the adoption of Regulation

A, the Commission regularly has

updated abbreviated disclosure

procedures and exemptions for small

businesses and encouraged input from

small businesses.10 In 1977, an SEC

advisory committee on corporate

disclosure suggested more ways that the

Commission could assist small business

capital formation.11 Shortly thereafter,

in 1979, the Commission created an

Office of Small Business Policy.

For fifteen years, the Commission has

cosponsored the annual GovernmentBusiness Forum on Small Business

Capital Formation, where small

businesses can let state and federal

government officials know how laws,

rules and regulations are affecting their

ability to raise capital. In the past year,

the Commission appointed a Small

Business Ombudsman. The Commission

also initiated ‘‘town hall’’ meetings with

small businesses around the country to

convey basic information about

securities regulation to small businesses

and to learn more about their concerns

and problems in raising capital.12 The

Office of Small Business and the Small

Business Ombudsman informally

answer questions from small business

issuers about securities registration,

securities offerings, and periodic

reporting received by telephone, e-mail,

and in writing.13

Informal guidance, for purposes of

SBREFA, is an answer to an inquiry

from a small entity concerning

information on, and advice about,

compliance with statutes and

regulations administered by an agency,

interpreting and applying the law to

specific facts supplied by the small

entity.14 The Managers Statement

inserted into the Congressional Record

after the enactment of SBREFA by the

chairmen who introduced SBREFA cites

the Commission’s existing informal

guidance program as a ‘‘successful’’ one,

and expresses the committees’ intent to

encourage the Commission’s efforts:

The Act directs agencies that regulate small

entities to answer inquiries of small entities

seeking information on and advice about

regulatory compliance. Some agencies

already have established successful programs

to provide compliance assistance and the

amendment intends to encourages these

efforts. For example, the * * * SEC * * *

[has] an established practice of issuing

private letter rulings applying the laws to a

particular set of facts.15

The Commission has reviewed its

current informal guidance program, and

has determined that it is consistent with

the requirements of SBREFA. The

ommission will monitor this area,

however, and may supplement the

informal guidance program should it

appear necessary in the future. The

Commission intends that this release

serve as a comprehensive resource for

small entities wondering where and

how to obtain informal Commission

guidance.

I. Informal Guidance Program

The Commission’s operating divisions

and offices provide the public with

informal guidance about the

applicability of the federal securities

laws to specific facts. Commission staff

also provide informal guidance to the
15606 Federal Register / Vol. 62, No. 63 / Wednesday, April 2, 1997 / Rules and Regulations

16Responses to such inquiries are informal

guidance for purposes of SBREFA only if the

Commission staff interprets or applies the securities

laws to specific facts supplied by or on behalf of

a small entity.

17The Division of Corporation Finance makes

publicly available through the Public Reference

Room and publication on the Commission’s Web

site a compilation of significant positions provided

in response to telephone inquiries. The Division

also makes public a monthly listing of significant

no-action letters, as well as a summary of those

positions.

18See 17 CFR 211.

19See Commission releases on no-action and

interpretive advice cited at n.8.

20The Divisions of Corporation Finance and

Market Regulation specify when others may rely

upon the advice in a no-action letter. The Division

of Investment Management generally permits third

parties to rely on no-action or interpretive letters to

the extent that the third party’s facts and

circumstances are substantially similar to those

described in the underlying request for a no-action

or interpretive letter.

21See 17 CFR 200.81.

22SBREFA provides that ‘‘[i]n any civil or

administrative action against a small entity,

guidance given by an agency applying the law to

facts provided by the small entity may be

considered as evidence of the reasonableness or

appropriateness of any proposed fines, penalties or

damages sought against such small entity.’’ SBREFA

section 213(a).

general public, issuers and existing and

prospective regulated entities about

compliance with registration

requirements. This guidance takes

several forms, including publications,

responses to inquiries received by

telephone and computer, and no-action

and interpretive letters.16 Staff at

Commission headquarters generally

respond to all inquiries. Regional and

district office staff may respond to

questions regarding certain matters, or

may refer questions to the appropriate

headquarters office for a response.

A. Telephone, Computer, and Written

Informal Guidance

At the Commission’s headquarters,

the operating divisions and offices

provide informal guidance as follows:

• Division of Investment

Management—responds to telephone

and written inquiries and issues noaction and interpretive letters relating to

investment companies and investment

advisers through its Office of Chief

Counsel. Telephone number: 202–942–

0659.

• Division of Market Regulation—

responds to telephone and e-mail

inquiries through its Office of

Interpretations and Guidance and issues

no-action and interpretive letters about

securities markets, including exchanges,

and securities market intermediaries,

including broker-dealers, transfer

agents, clearing agencies, and securities

information processors. Telephone

number: 202–942–0073. E-mail address:

marketreg@sec.gov.

• Division of Corporation Finance—

responds to telephone inquiries and

issues no-action and interpretive letters

relating to small business matters

through its Office of Small Business.

The Small Business Ombudsman, the

Commission’s liaison to and spokesman

for small business, also is available

through this division. Telephone

number: 202–942–2950.

• Division of Corporation Finance—

responds to all other telephone inquiries

and e-mail inquiries about the offer and

sale of securities, as well as issuer and

ownership reporting and stockholder

voting, and issues no-action and

interpretive letters through its Office of

Chief Counsel. Telephone number: 202–

942–2900.17 E-mail address: eprospectus@sec.gov.

• Office of Chief Accountant—

responds to telephone and written

inquiries from registrants and their legal

and accounting advisers on financial

reporting matters, including, but not

limited to, auditor independence,

interpretations of FASB accounting

standards, and Commission reporting

requirements under Regulation S–X.

This office, in conjunction with the

Division of Corporation Finance, also

publishes Staff Accounting Bulletins

that address specific issues of

accounting and auditing practice,

usually based on specific facts.18 Staff

Accounting Bulletins are informal

guidance for purposes of SBREFA when

they address accounting and auditing

practice with regard to specific sets of

facts.

B. No-Action and Interpretive Letters

As noted above, the Commission’s

Divisions of Market Regulation,

Investment Management and

Corporation Finance provide informal

written advice in the form of no-action

and interpretive letters. In a no-action

letter a Division states that it will not

recommend any enforcement action to

the Commission if the requesting party

acts in accordance with specific facts

and representations made in its letter. In

some instances the Division will state

that it is not able to give such assurance.

In an interpretive letter a Division

interprets a specific statutory provision,

rule or regulation in the context of a

factual situation described in the

request. The Divisions will not respond

to certain types of questions, including,

for example, hypothetical or overly

general ones.19 In general, only the party

or parties requesting a no-action or

interpretive position may rely on a noaction or interpretive letter, and they

may rely on the position with regard

only to the specific facts addressed in

the letter. In certain cases, however, the

staff of a Division may approve reliance

by third parties.20

Staff no-action and interpretive letters

are available to the public at

Commission headquarters and at certain

regional offices. Computerized legal

research firms also provide these letters,

usually for a fee. Letters are available to

the public as soon as practicable after

the staff sends the letter to the

requesting party. No-action and

interpretive letters may be treated as

confidential for up to 120 days,

however, if the Division issuing the

letter determines that a request for such

treatment is reasonable and

appropriate.21

The Commission takes the position

that staff no-action and interpretive

positions do not constitute Commission

precedent and do not bind subsequent

Commission action.22 Although staff

informal guidance assists the public to

understand how to comply with the

Commission’s rules and policies, the

Commission reserves the right to act

contrary to staff advice. On the other

hand, the Commission occasionally

issues interpretive releases on selected

subjects or areas of the law designed to

inform the public about the staff’s

current views and to reduce the need for

no-action and interpretive requests. In

addition, when proposing or adopting

rules and rule amendments, the

Commission may cite with approval

letters issued by the staff in the area. In

each of these cases, the Commission

effectively adopts the staff positions as

its own. In appropriate cases, the

Commission, or the Divisions by

delegated authority, also may grant

exemptive relief, subject to compliance

with specified conditions, from certain

statutory and regulatory provisions.

Although exemptions technically are

not informal guidance, they provide

relief from regulatory burdens that is

less formal than rulemaking. Third

parties ordinarily cannot rely on

exemptions.

II. Inspections, Examinations and

Enforcement Actions Do Not Provide

Informal Guidance

The Office of Compliance Inspections

and Examinations (‘‘OCIE’’) examines

registered broker-dealers, investment

advisers, and investment companies. If,

during the course of an examination or

inspection, OCIE uncovers a potential

securities law violation, it may refer the

matter to the Division of Enforcement,

or issue a deficiency letter to the

regulated entity. At times, a regulated

entity will receive a deficiency letter
Federal Register / Vol. 62, No. 63 / Wednesday, April 2, 1997 / Rules and Regulations 15607

23SBREFA requires agencies to establish penalty

reduction policies for small entities, which the

Commission is doing in a companion release issued

today. Securities Act Rel. No. 7408 (Mar. 27, 1997).

24Securities Act Rel. No. 7342; 62 FR 4104 (Jan.

28, 1997) (codified at 17 CFR 202.8).

25The Commission generally will not publish or

make available materials:

(1) specifically authorized by executive order to

be kept secret or that are classified;

(2) related solely to internal personnel rules and

practices;

(3) specifically exempted from disclosure by

statute;

(4) containing privileged and confidential

personal financial information or disclosing trade

secrets;

(5) that are interagency or intra-agency

memoranda or communications, except those

which would routinely be made available in

litigation;

(6) that are records whose release would

constitute a clearly unwarranted invasion of

personal privacy;

(7) that are records compiled for law enforcement

purposes;

(8) contained in or related to any examination of

financial institutions; or

(9) that set forth geological or geophysical

information and data concerning wells.

17 CFR 200.80(b).

26The Public Reference Room charges for copies

of these materials.

27 5 U.S.C. 553.

28 5 U.S.C. 601–602.

and also will be referred to the Division

of Enforcement. Deficiency letters

describe problems found in an

examination, and direct the recipient to

correct the problems in a given period

of time.

The Division of Enforcement does not

provide any informal guidance to the

public as to compliance with the

securities laws. The Division

investigates possible violations of the

federal securities laws with a view

toward advising the Commission

whether civil or administrative action

should be initiated, and prosecutes any

such actions approved by the

Commission.23

III. Information Outside the Informal

Guidance Program

The Commission also provides

numerous sources for general

information that are outside the

informal guidance program. A brief

description of these follows.

A. Municipal Securities Ombudsman

The Municipal Securities

Ombudsman, in the Office of Municipal

Securities, assists municipal securities

issuers in obtaining information from

Commission staff. The telephone

number for the Municipal Securities

Ombudsman is 202–942–7300. The email address is oms@sec.gov.

B. Commission Web Site

The Commission maintains a site on

the World Wide Web at http://

www.sec.gov. This Web site contains

brochures, news, and information about

the Commission, including a list of

Commission Internet mailboxes at

htpp://www.sec.gov/asec/mailboxes.

The Commission also provides access to

its electronic filing database, known as

EDGAR, through the Web site. The

EDGAR database includes most recently

filed registration statements, periodic

reports and other disclosure documents

filed with the Commission. The Web

site also includes a page that contains

information of special interest to small

businesses, and a list of pending and

completed Commission rulemakings of

particular relevance to small businesses.

C. General Publications and Information

on Request

The Commission makes available a

variety of publications and resources for

information about the Commission and

the federal securities laws. On January

28, 1997, the Commission designated

many of these publications as small

business compliance guides and

described how to obtain these

materials.24

D. General Information, Filings and

Releases on Request

The Commission’s Office of

Investment Education and Assistance

produces educational material and

programs for the public that describe

preventive measures investors can take

to protect their investments from fraud

and abuse. Members of the public may

reach this office at the Commission’s

toll-free number, 800-SEC–0330, to

obtain information on topics of current

interest and to obtain specific

publications. Members of the public

also may telephone the Public Reference

Room at 202–942–8090, or write to the

Public Reference Room at the Securities

and Exchange Commission, 450 Fifth

Street, N.W., Washington D.C. 20549 to

obtain non-confidential documents from

the Commission.25 Information available

from the Public Reference Room

includes copies of Commission

opinions, statements of policy adopted

by the Commission, certain staff

manuals and instructions, indices of

opinions and statements of policy,

required filings with the Commission

that are not confidential, requests or

petitions for a change in Commission

rules, no-action and interpretive letters,

exemptions from Commission

regulation (when publicly available),

transcripts of public proceedings, and

Commission reports to Congress.26 Some

of these items also may be retrieved

from the Commission’s Web site.

IV. Regulatory Requirements

The Commission’s informal guidance

program is not an agency rule and,

therefore, the provisions of the

Administrative Procedure Act (‘‘APA’’)

regarding notice of proposed

rulemaking, opportunities for public

participation, and prior publication are

not applicable.27 Similarly, the

provisions of the Regulatory Flexibility

Act, which apply only when notice and

comment are required by the APA or

another statute, are not applicable.28

Dated: March 27, 1997.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–8359 Filed 4–1–97; 8:45 am]

BILLING CODE 8010–01–P

SOCIAL SECURITY ADMINISTRATION

20 CFR Part 404

[Regulations No. 4]

RIN 0960–AE44

Federal Old-Age, Survivors and

Disability Insurance; Report of

Earnings Under the Social Security

Earnings Test

AGENCY: Social Security Administration.

ACTION: Final rule.

SUMMARY: This final rule amends our

regulations regarding reports of earnings

to the Social Security Administration

(SSA) required of beneficiaries who

work and earn more than the applicable

exempt amount. Beneficiaries under age

70, who work and earn more than the

applicable exempt amount, are required

by law to report their earnings to SSA

within three months and 15 days

following the close of their tax year

(usually April 15). As a result of our

ongoing efforts both to improve

customer service and to reduce the

public’s paperwork burden, we are

changing our regulations to state that we

can accept the W–2 report filed by the

employer with SSA, and/or the selfemployment income tax return filed by

the beneficiary with the Internal

Revenue Service (IRS), as the report of

earnings. We will use the information

(wages and net earnings from selfemployment) contained in those reports

together with other pertinent

information to adjust benefits under the

earnings test.

DATES: This final rule is effective April

2, 1997.