Federal Register / Vol. 63, No. 125 /Tuesday, June 30, 1998 /Rules and Regulations 35515

PART 275—RULES AND

REGULATIONS, INVESTMENT

ADVISERS ACT OF 1940

7. The authority citation for Part 275

continues to read, in part, as follows:

Authority: 15 U.S.C. 80b–2(a), 80b–3, 80b–

4, 80b–6(4), 80b–6A, 80b–11, unless

otherwise noted.

* * * * *

8. Section 275.0–7 is revised to read

as follows:

§ 275.0–7. Small entities under the

Investment Advisers Act for purposes of

the Regulatory Flexibility Act.

(a) For purposes of Commission

rulemaking in accordance with the

provisions of Chapter Six of the

Administrative Procedure Act (5 U.S.C.

601 et seq.) and unless otherwise

defined for purposes of a particular

rulemaking proceeding, the term small

business or small organization for

purposes of the Investment Advisers Act

of 1940 shall mean an investment

adviser that:

(1) Has assets under management, as

defined under Section 203A(a)(2) of the

Act (15 U.S.C. 80b–3a(a)(2)) and

reported on Form ADV–T (17 CFR

279.3) or its most recent Schedule I to

Form ADV (17 CFR 279.1), having a

total value of less than $25 million, or

such higher amount as the Commission

may by rule deem appropriate under

Section 203A(a)(1)(A) of the Act (15

U.S.C. 80b–3a(a)(1)(A));

(2) Did not have total assets of $5

million or more on the last day of the

most recent fiscal year; and

(3) Does not control, is not controlled

by, and is not under common control

with another investment adviser that

has assets under management of $25

million or more (or such higher amount

as the Commission may deem

appropriate), or any person (other than

a natural person) that had total assets of

$5 million or more on the last day of the

most recent fiscal year.

(b) For purposes of this section:

(1) Control means the power to direct

or cause the direction of the

management or policies of a person,

whether through ownership of

securities, by contract, or otherwise.

Any person that directly or indirectly

has the right to vote 25 percent or more

of the voting securities, or is entitled to

25 percent or more of the profits, of

another person is presumed to control

the other person.

(2) Total assets means the total assets

as shown on the balance sheet of the

investment adviser or other person

described above under paragraph (a)(3)

of this section, or the balance sheet of

the investment adviser or such other

person with its subsidiaries

consolidated, whichever is larger.

Dated: June 24, 1998.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–17387 Filed 6–29–98; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

RIN 0960–AE86

Administrative Review Process;

Prehearing Proceedings and Decisions

by Attorney Advisors; Extension of

Expiration Date

AGENCY: Social Security Administration.

ACTION: Final rules.

SUMMARY: These final rules extend the

time period set out in our regulations

during which attorney advisors in our

Office of Hearings and Appeals (OHA)

may conduct certain prehearing

proceedings and, where the

documentary record developed as a

result of these proceedings warrants,

issue decisions that are wholly favorable

to the parties to the hearing in claims for

Social Security or Supplemental

Security Income (SSI) benefits based on

disability. We are extending the date at

which these rules will no longer be

effective from July 1, 1998, until April

1, 1999.

EFFECTIVE DATE: These rules are effective

June 30, 1998.

FOR FURTHER INFORMATION CONTACT:

Harry J. Short, Legal Assistant, Office of

Process and Innovation Management,

Social Security Administration, 6401

Security Boulevard, Baltimore, MD

21235, (410) 965–6243 for information

about these rules. For information on

eligibility or claiming benefits, call our

national toll-free number, 1–800–772–

1213.

SUPPLEMENTARY INFORMATION: On June

30, 1995, in an action undertaken to

reduce the record numbers of requests

for an administrative law judge (ALJ)

hearing pending in our OHA hearing

offices, we published final rules in the

Federal Register (60 FR 34126) that

authorize OHA’s attorney advisors to

conduct certain prehearing proceedings

and, if a decision that is wholly

favorable to the parties to the hearing

may be issued at the completion of these

proceedings, to issue such a decision.

These regulations, which are codified at

§§ 404.942 and 416.1442, included a

provision stating that the rules would

no longer be effective on June 30, 1997,

unless the Commissioner of Social

Security extended the expiration date of

the provisions by publication of a final

rule in the Federal Register. We

subsequently published a final rule in

the Federal Register on June 30, 1997

(62 FR 35073), stating that these rules

would no longer be effective on July 1,

1998.

In order to maximize our ability to

meet our hearing production goals, we

have decided to extend the date on

which these rules will no longer be

effective from July 1, 1998, to April 1,

1999. The final rules amend the sunset

provision in §§ 404.942 and 416.1442

(which expressly provides for extending

the expiration date of those sections) to

provide that the provisions authorizing

prehearing proceedings and decisions

by attorney advisors will no longer be

effective on April 1, 1999, unless the

provisions are extended by the

Commissioner of Social Security by

publication of a final rule in the Federal

Register.

Regulatory Procedures

Pursuant to section 702(a)(5) of the

Social Security Act, 42 U.S.C. 902(a)(5),

as amended by section 102 of Public

Law 103–296, SSA follows the

Administrative Procedure Act (APA)

rulemaking procedures specified in 5

U.S.C. 553 in the development of its

regulations. The APA provides

exceptions to its notice and public

comment procedures when an agency

finds there is good cause for dispensing

with such procedures on the basis that

they are impracticable, unnecessary, or

contrary to the public interest. We have

determined that, under 5 U.S.C.

553(b)(B), good cause exists for

dispensing with the notice and public

comment procedures in this case. Good

cause exists because these rules only

extend the date on which the regulatory

provisions concerning prehearing

proceedings and decisions by attorney

advisors will no longer be effective.

These rules make no substantive change

to those provisions. The current

regulations expressly provide that the

provisions may be extended. Therefore,

opportunity for prior comment is

unnecessary, and we are issuing these

regulations as final rules.

In addition, we find good cause for

dispensing with the 30-day delay in the

effective date of a substantive rule,

provided for by 5 U.S.C. 553(d). As

explained above, we are not making any

substantive changes in the provisions on

prehearing proceedings and decisions

by attorney advisors. However, without

a timely extension of the expiration date

for these provisions, we will lack
35516 Federal Register / Vol. 63, No. 125 /Tuesday, June 30, 1998 /Rules and Regulations

regulatory authority beginning July 1,

1998, to have OHA attorney advisors

conduct certain prehearing proceedings

and issue fully favorable decisions

where appropriate under the rules. In

order to provide for an uninterrupted

continuance of that authority for the

additional period we believe

appropriate, and to ensure that we

retain the ability to manage the hearings

process appropriately, we find that it is

in the public interest to make these

rules effective upon publication.

Executive Order 12866

We have consulted with the Office of

Management and Budget (OMB) and

determined that these rules do not meet

the criteria for a significant regulatory

action under Executive Order 12866.

Thus, the rules are not subject to OMB

review.

Regulatory Flexibility Act

We certify that these regulations will

not have a significant economic impact

on a substantial number of small entities

because they affect only individuals.

Therefore, a regulatory flexibility

analysis as provided in the Regulatory

Flexibility Act, as amended, is not

required.

Paperwork Reduction Act

These regulations impose no

reporting/recordkeeping requirements

necessitating clearance by OMB.

(Catalog of Federal Domestic Assistance

Program Nos. 96.001, Social SecurityDisability Insurance; 96.006, Supplemental

Security Income)

List of Subjects

20 CFR Part 404

Administrative practice and

procedure, Death benefits, Disability

benefits, Old-Age, Survivors and

Disability Insurance, Reporting and

recordkeeping requirements, Social

Security.

20 CFR Part 416

Administrative practice and

procedure, Aged, Blind, Disability

benefits, Public assistance programs,

Supplemental Security Income (SSI),

Reporting and recordkeeping

requirements.

Dated: June 23, 1998.

Kenneth S. Apfel,

Commissioner of Social Security.

For the reasons set out in the

preamble, subpart J of part 404 and

subpart N of part 416 of chapter III of

title 20 of the Code of Federal

Regulations are amended as set forth

below.

PART 404—FEDERAL OLD-AGE,

SURVIVORS AND DISABILITY

INSURANCE (1950– )

Subpart J is amended as follows:

1. The authority citation for subpart J

of part 404 continues to read as follows:

Authority: Secs. 201(j), 205(a), (b), (d)-(h),

and (j), 221, 225, and 702(a)(5) of the Social

Security Act (42 U.S.C. 401(j), 405(a), (b), (d)-

(h), and (j), 421, 425, and 902(a)(5)); 31 U.S.C.

3720A; sec. 5, Pub. L. 97–455, 96 Stat. 2500

(42 U.S.C. 405 note); secs. 5, 6(c)-(e), and 15,

Pub. L. 98–460, 98 Stat. 1802 (42 U.S.C. 421

note).

2. Section 404.942 is amended by

revising paragraph (g), to read as

follows:

§ 404.942 Prehearing proceedings and

decisions by attorney advisors.

* * * * *

(g) Sunset provision. The provisions

of this section will no longer be effective

on April 1, 1999, unless they are

extended by the Commissioner of Social

Security by publication of a final rule in

the Federal Register.

PART 416—SUPPLEMENTAL

SECURITY INCOME FOR THE AGED,

BLIND, AND DISABLED

Subpart N is amended as follows:

1. The authority citation for subpart N

continues to read as follows:

Authority: Sec. 702(a)(5), 1631, and 1633

of the Social Security Act (42 U.S.C.

902(a)(5), 1383, and 1383b).

2. Section 416.1442 is amended by

revising paragraph (g), to read as

follows:

§ 416.1442 Prehearing proceedings and

decisions by attorney advisors.

* * * * *

(g) Sunset provision. The provisions

of this section will no longer be effective

on April 1, 1999, unless they are

extended by the Commissioner of Social

Security by publication of a final rule in

the Federal Register.

[FR Doc. 98–17343 Filed 6–29–98; 8:45 am]

BILLING CODE 4190–29–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Parts 868, 884, and 890

[Docket No. 94N–0418]

Medical Devices; Retention of Three

Preamendment Class III Devices in

Class III

AGENCY: Food and Drug Administration,

HHS.

ACTION: Final rule.

SUMMARY: The Food and Drug

Administration (FDA) is retaining the

following three preamendments class III

devices in class III: Lung water monitor,

powered vaginal muscle stimulator for

therapeutic use, and stair-climbing

wheelchair. The agency is taking this

action because insufficient information

exists to determine that special controls

would provide reasonable assurance of

their safety and effectiveness, and/or

these devices present a potential

unreasonable risk of illness or injury.

EFFECTIVE DATE: July 30, 1998.

FOR FURTHER INFORMATION CONTACT:

Janet L. Scudiero, Center for Devices

and Radiological Health (HFZ–410),

Food and Drug Administration, 9200

Corporate Blvd., Rockville, MD 20850,

301–594–1184.

SUPPLEMENTARY INFORMATION:

I. Background

In the Federal Register of June 18,

1997 (62 FR 33044), FDA issued a

proposed rule to retain the lung water

monitor, the powered vaginal muscle

stimulator for therapeutic use, and the

stair-climbing wheelchair in class III.

This proposed retention in class III was

based on a lack of information

submitted in response to the section

515(i) of the Federal Food, Drug, and

Cosmetic Act (the act) (21 U.S.C.

360e(i)) order to determine whether or

not special controls could be established

to reasonably assure the safety and

effectiveness of these devices.

Interested persons were given until

September 16, 1997, to comment on the

proposed rule. During the comment

period, FDA received no comments on

the proposed rule.

II. FDA’s Conclusion

FDA has concluded that insufficient

information exists to establish special

controls to provide reasonable assurance

of the safety and effectiveness of the

lung water monitor, the powered

vaginal muscle stimulator for

therapeutic use, and the stair-climbing

wheelchair and/or that these devices

present a potential unreasonable risk of

illness or injury.

III. Environmental Impact

The agency has determined under 21

CFR 25.30(h) that this action is of a type

that does not individually or

cumulatively have a significant effect on

the human environment. Therefore,

neither an environmental assessment

nor an environmental impact statement

is required.