13272 Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices 

NUCLEAR REGULATORY 

COMMISSION 

[NRC–2008–0500] 

Proposed Revisions to the License 

Renewal Interim Staff Guidance 

Process and Regulatory Issue 

Summary 2007–16; Request for Public 

Comment 

AGENCY: Nuclear Regulatory 

Commission (NRC). 

ACTION: Request for public comment. 

SUMMARY: The NRC requests public 

comment on a proposed draft License 

Renewal Interim Staff Guidance (LR– 

ISG) Process, Revision 1. This draft 

incorporates changes to the existing LR– 

ISG process, dated December 12, 2003, 

and basic framework for developing and 

implementing LR–ISGs. The NRC also 

requests public comment on a proposed 

revision to NRC Regulatory Issue 

Summary (RIS) 2007–16. This revision 

clarifies the role of the LR–ISG process 

for including ‘‘newly identified’’ 

systems, structures, and components in 

accordance with § 54.37(b) of Title 10, 

Part 54, ‘‘Requirements for Renewal of 

Operating Licenses for Nuclear Power 

Plants,’’ of the Code of Federal 

Regulations (10 CFR 54.37(b)). The 

proposed revisions to the LR–ISG 

process and RIS are available in the 

NRC’s Agencywide Documents Access 

and Management System (ADAMS), 

under Accession Nos. ML082180346 

and ML083500028, respectively. 

DATES: Comments must be filed no later 

than April 27, 2009. Comments received 

after this date will be considered, if it 

is practical to do so, but the NRC staff 

is able to ensure consideration only for 

comments received on or before this 

date. 

ADDRESSES: You may submit comments 

by any one of the following methods. 

Comments submitted in writing or in 

electronic form will be made available 

to the public in their entirety on the 

Federal Government’s rulemaking Web 

site http://www.regulations.gov. 

Personal information, such as name, 

address, telephone, e-mail address, etc., 

will not be removed from your 

submission. 

E-mail comments to: The Federal eRulemaking Portal at http:// 

www.regulations.gov; search Docket ID 

NRC–2008–0500. 

Mail comments to: Michael Lesar, 

Chief, Rulemaking and Directives 

Branch, Mailstop TWB–05–B01M, 

Office of Administration, U.S. Nuclear 

Regulatory Commission, Washington, 

DC 20555–0001. 

Documents created or received after 

November 1, 1999, are available 

electronically at the NRC’s Public 

Electronic Reading Room on the Internet 

at http://www.nrc.gov/reading-rm/ 

adams.html. From this site, the public 

can gain entry into ADAMS. If you do 

not have access to the Internet or if there 

are any problems in accessing the 

documents located in ADAMS, contact 

the NRC Public Document Room 

reference staff at 1–800–397–4209, 301– 

415–4737, or by e-mail at 

PDR.Resource@nrc.gov. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Matthew Homiack, Division of License 

Renewal, Office of Nuclear Reactor 

Regulation, U.S. Nuclear Regulatory 

Commission, Washington, DC 20555– 

0001; telephone 301–415–1683; or email Matthew.Homiack@nrc.gov. 

SUPPLEMENTARY INFORMATION: The NRC 

posts its issued interim staff guidance 

on the NRC public Web page at http:// 

www.nrc.gov/reading-rm/doccollections/isg. The NRC staff requests 

public comment on draft LR–ISG–2007– 

01 entitled, ‘‘License Renewal Interim 

Staff Guidance Process, Revision 1’’ 

(ADAMS Accession No. ML082180346). 

Once approved, this LR–ISG will 

supersede the existing process entitled, 

‘‘Process for Interim Staff Guidance,’’ 

issued December 12, 2003 

(ML023520620). The NRC staff is 

proposing revisions to this process in 

order to address certain 

recommendations made in a report 

issued by the NRC’s Office of the 

Inspector General, OIG–07–A–15, 

‘‘Audit of the NRC’s License Renewal 

Program,’’ dated September 6, 2007 

(ML072490486). The revision also 

extends the LR–ISG process to include 

certain guidance documents associated 

with environmental reviews for license 

renewal applications. These documents 

are NUREG–1555, ‘‘Environmental 

Standard Review Plan,’’ Supplement 1, 

‘‘Operating License Renewal,’’ dated 

March 2000 (ML003702019), and NRC 

Regulatory Guide 4.2, Supplement 1, 

‘‘Preparation of Supplemental 

Environmental Reports for Applications 

to Renew Nuclear Power Plant 

Operating Licenses,’’ dated September 

2000 (ML003710495). The staff is also 

proposing to eliminate the previous 

‘‘clarification’’ and ‘‘compliance’’ LR– 

ISG designations. As an alternative, the 

staff will document the basis for 

applicability of 10 CFR 54.37(b) or 10 

CFR 50.109 in a proposed new 

backfitting discussion section of each 

LR–ISG. In addition, the draft LR–ISG 

process includes administrative 

changes, such as references to the NRC’s 

organizational structure. 

The NRC staff also requests public 

comment on a proposed revision to RIS 

2007–16. The NRC staff identified the 

need to revise this RIS to be consistent 

with the revision to the LR–ISG process. 

This revised RIS, once approved, will 

supersede the original version entitled, 

‘‘Implementation of the Requirements of 

10 CFR 54.37(b) for Holders of Renewed 

Licenses,’’ issued August 23, 2007 

(ML071080338). 

The NRC staff is issuing this notice to 

solicit public comments on draft LR– 

ISG–2007–01. After the NRC staff 

considers any public comments, it will 

make a determination regarding the 

draft LR–ISG. 

Dated at Rockville, Maryland, this 18th day 

of March 2009. 

For the Nuclear Regulatory Commission. 

Brian E. Holian, 

Director, Division of License Renewal, Office 

of Nuclear Reactor Regulation. 

[FR Doc. E9–6757 Filed 3–25–09; 8:45 am] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 12d1–1; SEC File No. 270–526; OMB 

Control No. 3235–0584. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission (the 

‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Under current law, an investment 

company (‘‘fund’’) is limited in the 

amount of securities the fund 

(‘‘acquiring fund’’) can acquire from 

another fund (‘‘acquired fund’’). In 

general under the Investment Company 

Act of 1940 (15 U.S.C. 80a) (the 

‘‘Investment Company Act’’ or ‘‘Act’’), a 

registered fund (and companies it 

controls) cannot: (i) Acquire more than 

three percent of another fund’s 

securities; (ii) invest more than five 

percent of its own assets in another 

fund; or (iii) invest more than ten 

percent of its own assets in other funds 

Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices 13273 

1See 15 U.S.C. 80a–12(d)(1)(A). If an acquiring 

fund is not registered, these limitations apply only 

with respect to the acquiring fund’s acquisition of 

registered funds. 

2See 15 U.S.C. 80a–12(d)(1)(B). 

3See Rule 12d1–1(b)(1). 

4See 15 U.S.C. 80a–17(a), 15 U.S.C. 80a–17(d); 17 

CFR 270.17d–1. 

5An affiliated person of a fund includes any 

person directly or indirectly controlling, controlled 

by, or under common control with such other 

person. See 15 U.S.C. 80a–2(a)(3)(C) (definition of 

‘‘affiliated person’’). Most funds today are organized 

by an investment adviser that advises or provides 

administrative services to other funds in the same 

complex. Funds in a fund complex are generally 

under common control of an investment adviser or 

other person exercising a controlling influence over 

the management or policies of the funds. See 15 

U.S.C. 80a–2(a)(9). Not all advisers control funds 

they advise. The determination of whether a fund 

is under the control of its adviser, officers, or 

directors depends on all the relevant facts and 

circumstances. See Investment Company Mergers, 

Investment Company Act Release No. 25259 (Nov. 

8, 2001) [66 FR 57602 (Nov. 15, 2001)], at n.11. To 

the extent that an acquiring fund in a fund complex 

is under common control with a money market 

fund in the same complex, the funds would rely on 

the rule’s exemptions from section 17(a) and rule 

17d–1. 

6See 15 U.S.C. 80a–2(a)(3)(A), (B). 7See 15 U.S.C. 80a–17(a), 15 U.S.C. 80a–17(d), 15 

U.S.C. 80a–17(e), 15 U.S.C. 80a–18, 15 U.S.C. 80a– 

22(e). 8See 17 CFR 270.31a–1(b)(2)(ii), 17 CFR 270.31a– 

1(b)(2)(iv), 17 CFR 270.31a–1(b)(9). 

9This estimate is based on the number of 

applications filed with the Commission in 2005 

(40), increased by investment in 6 new funds each 

year since 2005 (18), and rounded to the nearest 

tenth (60). This estimate may be understated 

because applicants generally do not identify the 

name or number of unregistered money market 

funds in which registered funds intend to invest, 

and each application also applies to unregistered 

money market funds to be organized in the future. 

10This estimate is based on the following 

calculation: (60 × 162) + (6 × 162) + (6 × 1) + (15 

× 1) = 10,713. 

11This estimate is based on the following 

calculation: (60 × 1220) + (6 × 1220) + (6 × 21) + 

(15 × 4.5) = 80,714. 

12This estimate is based on the average of assets 

under management of medium-sized registered 

money market funds ($50 million to $999 million). 

in the aggregate.1 In addition, a 

registered open-end fund, its principal 

underwriter, and any registered broker 

or dealer cannot sell that fund’s shares 

to another fund if, as a result: (i) The 

acquiring fund (and any companies it 

controls) owns more than three percent 

of the acquired fund’s stock; or (ii) all 

acquiring funds (and companies they 

control) in the aggregate own more than 

ten percent of the acquired fund’s 

stock.2 Rule 12d1–1 under the Act (17 

CFR 270.12d1–1) provides an 

exemption from these limitations for 

‘‘cash sweep’’ arrangements, in which a 

fund invests all or a portion of its 

available cash in a money market fund 

rather than directly in short-term 

instruments. An acquiring fund relying 

on the exemption may not pay a sales 

load, distribution fee, or service fee on 

acquired fund shares, or if it does, the 

acquiring fund’s investment adviser 

must waive a sufficient amount of its 

advisory fee to offset the cost of the 

loads or distribution fees.3 The acquired 

fund may be a fund in the same fund 

complex or in a different fund complex. 

In addition to providing an exemption 

from section 12(d)(1) of the Act, the rule 

provides exemptions from section 17(a) 

and rule 17d–1, which restrict a fund’s 

ability to enter into transactions and 

joint arrangements with affiliated 

persons.4 These provisions could 

otherwise prohibit an acquiring fund 

from investing in a money market fund 

in the same fund complex,5 or prohibit 

a fund that acquires five percent or more 

of the securities of a money market fund 

in another fund complex from making 

any additional investments in the 

money market fund.6

The rule also permits a registered 

fund to rely on the exemption to invest 

in an unregistered money market fund 

that limits its investments to those in 

which a registered money market fund 

may invest under rule 2a–7 under the 

Act (17 CFR 270.2a–7), and undertakes 

to comply with all the other provisions 

of rule 2a–7. In addition the acquiring 

fund must reasonably believe that the 

unregistered money market fund (i) 

operates in compliance with rule 2a–7, 

(ii) complies with sections 17(a), (d), (e), 

18, and 22(e) of the Act 7 as if it were 

a registered open-end fund, (iii) has 

adopted procedures designed to ensure 

that it complies with these statutory 

provisions, (iv) maintains the records 

required by rules 31a–1(b)(2)(ii), 31a– 

1(b)(2)(iv), and 31a–1(b)(9); 8 and (v) 

preserves permanently, the first two 

years in an easily accessible place, all 

books and records required to be made 

under these rules. 

Rule 2a–7 contains certain collection 

of information requirements. An 

unregistered money market fund that 

complies with rule 2a–7 would be 

subject to these collection of 

information requirements. In addition, 

the recordkeeping requirements under 

rule 31a–1 with which the acquiring 

fund reasonably believes the 

unregistered money market fund 

complies are collections of information 

for the unregistered money market fund. 

By allowing funds to invest in registered 

and unregistered money market funds, 

rule 12d1–1 is intended to provide 

funds greater options for cash 

management. In order for a registered 

fund to rely on the exemption to invest 

in an unregistered money market fund, 

the unregistered money market fund 

must comply with certain collection of 

information requirements for registered 

money market funds. These 

requirements are intended to ensure that 

the unregistered money market fund has 

established procedures for collecting the 

information necessary to make adequate 

credit reviews of securities in its 

portfolio, as well as other recordkeeping 

requirements that will assist the 

acquiring fund in overseeing the 

unregistered money market fund (and 

Commission staff in its examination of 

the unregistered money market fund’s 

adviser). 

Commission staff estimates that 

registered funds currently invest in 60 

unregistered money market funds in 

excess of the statutory limits under rule 

12d1–1, and will invest in 

approximately 6 new unregistered 

money market funds each year 9 Staff 

estimates that each of these unregistered 

money market funds spends 1220 hours 

to perform the record of credit risk 

analysis and other determinations 

annually, and each of the 6 unregistered 

money market funds in which an 

acquiring fund invests in for the first 

time under the rule will spend 21 hours 

to implement the board procedures. 

Finally, Commission staff estimates that 

15 unregistered money market funds 

each spend 4.5 hours to review and 

amend procedures annually. The 

estimated total of annual responses 

under rule 12d1–1 is 10,713,10 and the 

estimate of burden hours associated 

with these responses is 80,714 hours.11

Commission staff estimates that 

unregistered money market funds also 

incur costs to preserve records, as 

required under rule 2a–7. These costs 

will vary significantly for individual 

funds, depending on the amount of 

assets under fund management and 

whether the fund preserves its records 

in a storage facility in hard copy or has 

developed and maintains a computer 

system to create and preserve 

compliance records. In its rule 2a–7 

Paperwork Reduction Act (‘‘PRA’’) 

submission, Commission staff estimated 

that the amount an individual money 

market fund may spend ranged from 

$100 per year to $300,000. We have no 

reason to believe the range is different 

for unregistered money market funds. 

The Commission does not have specific 

information on the amount of assets 

managed by unregistered money market 

funds. Accordingly, Commission staff 

estimates that an unregistered money 

market fund in which registered funds 

invest in reliance on rule 12d1–1 have, 

on average, $380 million in assets under 

management.12 Based on a cost of 

$0.0000005 per dollar of assets under 

management for medium-sized funds, 

13274 Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices 

13This estimate was based on the following 

calculation: 60 unregistered money market funds × 

$380 million in assets under management × 

$0.0000005 = $11,400. The estimate of cost per 

dollar of assets is the same as that used for mediumsized funds in the rule 2a–7 PRA submission. 

14This estimate is based on information 

Commission staff obtained in its survey for the rule 

2a–7 PRA submission. Of the funds surveyed, no 

medium-sized funds incurred this type of capital 

cost. The funds either maintained record systems 

using a program the fund would be likely to have 

in the ordinary course of business (such as Excel) 

or the records were maintained by the fund’s 

custodian. 

1Based on statistics compiled by Commission 

staff, we estimate that there are approximately 3885 

funds that must comply with the collections of 

information under rule 17g–1. 

the staff estimates compliance with rule 

2–7 costs each of these unregistered 

money market funds $11,400 

annually.13 Commission staff estimates 

that unregistered money market funds 

will not incur any capital costs to create 

computer programs for maintaining and 

preserving compliance records for rule 

2a–7.14

The collections of information 

required for unregistered money market 

funds by rule 12d1–1 are necessary in 

order for acquiring funds to be able to 

obtain the benefits described above. 

Notices to the Commission will not be 

kept confidential. An agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless it displays a 

currently valid control number. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication. 

Please direct your written comments 

to Charles Boucher, Director/CIO, 

Securities and Exchange Commission, 

C/O Shirley Martinson, 6432 General 

Green Way, Alexandria, VA 22312; or 

send an e-mail to: 

PRA_Mailbox@sec.gov. 

Dated: March 18, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6656 Filed 3–25–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 17g–1, SEC File No. 270–208, OMB 

Control No. 3235–0213. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520), the Securities 

and Exchange Commission (the 

‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Rule 17g–1 (17 CFR 270.17g–1) under 

the Investment Company Act of 1940 

(the ‘‘Act’’) (15 U.S.C. 80a–17(g)) 

governs the fidelity bonding of officers 

and employees of registered 

management investment companies 

(‘‘funds’’) and their advisers. Rule 17g– 

1 requires, in part, the following: 

Independent Directors’ Approval 

The form and amount of the fidelity 

bond must be approved by a majority of 

the fund’s independent directors at least 

once annually, and the amount of any 

premium paid by the fund for any ‘‘joint 

insured bond,’’ covering multiple funds 

or certain affiliates, must be approved 

by a majority of the fund’s independent 

directors. 

Terms and Provisions of the Bond 

The amount of the bond may not be 

less than the minimum amounts of 

coverage set forth in a schedule based 

on the fund’s gross assets; the bond 

must provide that it shall not be 

cancelled, terminated, or modified 

except upon 60-days written notice to 

the affected party and to the 

Commission; in the case of a joint 

insured bond, 60-days written notice 

must also be given to each fund covered 

by the bond; a joint insured bond must 

provide that the fidelity insurance 

company will provide all funds covered 

by the bond with a copy of the 

agreement, a copy of any claim on the 

bond, and notification of the terms of 

the settlement of any claim prior to 

execution of that settlement; and a fund 

that is insured by a joint bond must 

enter into an agreement with all other 

parties insured by the joint bond 

regarding recovery under the bond. 

Filings With the Commission 

Upon the execution of a fidelity bond 

or any amendment thereto, a fund must 

file with the Commission within 10 

days a copy of the executed bond or any 

amendment to the bond, the 

independent directors’ resolution 

approving the bond, and a statement as 

to the period for which premiums have 

been paid on the bond. In the case of a 

joint insured bond, a fund must also file 

(i) a statement showing the amount the 

fund would have been required to 

maintain under the rule if it were 

insured under a single insured bond and 

(ii) the agreement between the fund and 

all other insured parties regarding 

recovery under the bond. A fund must 

also notify the Commission in writing 

within five days of any claim or 

settlement on a claim under the fidelity 

bond. 

Notices to Directors 

A fund must notify by registered mail 

each member of its board of directors of 

(i) any cancellation, termination, or 

modification of the fidelity bond at least 

45 days prior to the effective date, and 

(ii) the filing or settlement of any claim 

under the fidelity bond when 

notification is filed with the 

Commission. 

Rule 17g–1’s independent directors’ 

annual review requirements, fidelity 

bond content requirements, joint bond 

agreement requirement and the required 

notices to directors seek to ensure the 

safety of fund assets against losses due 

to the conduct of persons who may 

obtain access to those assets. These 

requirements also seek to facilitate 

oversight of a fund’s fidelity bond. The 

rule’s required filings with the 

Commission are designed to assist the 

Commission in monitoring funds’ 

compliance with the fidelity bond 

requirements. 

Based on conversations with 

representatives in the fund industry, the 

Commission staff estimates that for each 

of the estimated 3885 active funds,1 the 

average annual paperwork burden 

associated with rule 17g–1’s 

requirements is two hours, one hour 

each for a compliance attorney and the 

board of directors as a whole. The time 

spent by compliance attorney includes 

time spent filing reports with the 

Commission for any fidelity losses (if 

any) as well as paperwork associated 

with any notices to directors, and 

managing any updates to the bond and 

the joint agreement (if one exists). The