57510 Federal Register / Vol. 70, No. 190 / Monday, October 3, 2005 / Rules and Regulations 

an insurance company for federal 

income tax purposes. The IRS believes 

the issue of what constitutes an 

insurance company is outside the scope 

of this regulation, which solely relates 

to the application of the asset-use test to 

stock held by foreign insurance 

companies. 

The commentator also expressed 

concern about the interaction of the 

proposed regulation with § 1.864–5(a), 

which provides, generally, that foreign 

source income, such as a foreign-source 

dividend or gain, cannot constitute U.S. 

effectively connected income in 

circumstances in which a U.S.-source 

dividend or gain would not constitute 

U.S. effectively connected income. 

Accordingly, the commentator is 

concerned that the rule in the 

regulations will also expand the 

category of foreign-source dividends or 

gains that may constitute effectively 

connected income. That is true and the 

Treasury Department and the IRS 

believe this is the appropriate result. 

The IRS invited comments whether 

the 10 percent threshold provided in the 

proposed regulation was an appropriate 

standard for determining whether stock 

is a portfolio investment. The 

commentator stated that it was possible 

for insurance companies to make a 

strategic investment in a corporation at 

a level below 10 percent of the vote or 

value of the corporation, such as by 

purchasing a special class of shares that 

conveyed the power to elect directors. 

The commentator recommended 

creating a rebuttable presumption of 

portfolio status. 

We do not believe that treating the 10 

percent threshold as a rebuttable 

presumption is appropriate. The 10 

percent threshold provides a reasonable 

method for identifying portfolio stock 

held by a branch of a foreign life 

insurance company. 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

has also been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations, and because these 

regulations do not impose a collection 

of information on small entities, the 

provisions of the Regulatory Flexibility 

Act (5 U.S.C. chapter 6) do not apply. 

Pursuant to section 7805(f) of the 

Internal Revenue Code, the notice of 

proposed rulemaking preceding this 

regulation was submitted to the Chief 

Counsel for Advocacy of the Small 

Business Administration for comment 

on its impact on small business. 

Drafting Information 

The principal author of this regulation 

is Sheila Ramaswamy, Office of 

Associate Chief Counsel (International). 

However, other personnel from the IRS 

and Treasury Department participated 

in their development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendment to the 

Regulations 

■ Accordingly, 26 CFR part 1 is 

amended as follows: 

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. In § 1.864–4, paragraph 

(c)(2)(iii)(b) is revised to read as follows: 

§ 1.864–4 U.S. source income effectively 

connected with U.S. business. 

* * * * * 

(c) * * * 

(2) * * * 

(iii) * * * 

(b) Stock held by foreign insurance 

companies. This paragraph (c)(2)(iii) 

shall not apply to stock of a corporation 

(whether domestic or foreign) held by a 

foreign insurance company unless the 

foreign insurance company owns 10 

percent or more of the total voting 

power or value of all classes of stock of 

such corporation. For purposes of this 

section, section 318(a) shall be applied 

in determining ownership, except that 

in applying section 318(a)(2)(C), the 

phrase ‘‘10 percent’’ is used instead of 

the phrase ‘‘50 percent.’’

* * * * * 

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: August 9, 2005. 

Eric Solomon, 

Acting Deputy Assistant Secretary for Tax 

Policy. 

[FR Doc. 05–19622 Filed 9–30–05; 8:45 am] 

BILLING CODE 4830–01–U 

EQUAL EMPLOYMENT OPPORTUNITY 

COMMISSION 

29 CFR Part 1610 

RIN 3046–AA75 

Freedom of Information Act Fee 

Schedule 

AGENCY: Equal Employment 

Opportunity Commission. 

ACTION: Final rule. 

SUMMARY: The Equal Employment 

Opportunity Commission (EEOC or the 

Commission) is adopting revisions to its 

Freedom of Information Act (FOIA) fee 

schedule. The updated schedule of fees 

reflects increases in the direct costs 

incurred by the Commission in 

responding to requests for records. 

DATES: October 3, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Thomas J. Schlageter, Assistant Legal 

Counsel, or Michelle Zinman, Senior 

General Attorney at (202) 663–4640 

(voice) or (202) 663–7026 (TTY). This 

notice of final rule is also available in 

the following formats: large print, 

Braille, audiotape and electronic file on 

computer disk. Requests for this notice 

of final rule in an alternative format 

should be made to EEOC’s Publication 

Center at 1–800–669–3362. 

SUPPLEMENTARY INFORMATION: On July 1, 

2005, at 70 FR 38060–01, the EEOC 

published a notice of proposed 

rulemaking proposing to amend the 

sections of 29 CFR part 1610 that 

concern the fees assessed to persons 

who seek agency records under the 

FOIA. The changes comply with the 

Office of Management and Budget’s 

Uniform Freedom of Information Act 

Fee Schedule and Guidelines, 52 FR 

10012 (1987). Comments from the 

public were due on or before August 31, 

2005. No comments were received. 

Therefore, EEOC is adopting the 

proposed revisions, without change, as 

its final rule. 

Regulatory Procedures 

Executive Order 12866 

Pursuant to Executive Order 12866, 

EEOC has determined that the 

regulation will not have an annual effect 

on the economy of $100 million or more 

or adversely affect in a material way the 

economy, a sector of the economy, 

productivity, competition, jobs, the 

environment, public health or safety, or 

State or local tribal governments or 

communities. Therefore, a detailed costbenefit assessment of the regulation is 

not required. 

Federal Register / Vol. 70, No. 190 / Monday, October 3, 2005 / Rules and Regulations 57511 

Paperwork Reduction Act 

This rule contains no new 

information collection requirements 

subject to review by the Office of 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

Chapter 35). 

Regulatory Flexibility Act 

The Commission, in accordance with 

the Regulatory Flexibility Act (5 U.S.C. 

606(b)), has reviewed this regulation 

and by approving it certifies that this 

regulation will not have a significant 

economic impact on a substantial 

number of small entities. 

Unfunded Mandates Reform Act of 1995 

This rule will not result in the 

expenditure by State, local, or tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year, and it will not 

significantly or uniquely affect small 

governments. Therefore, no actions were 

deemed necessary under the provisions 

of the Unfunded Mandates Reform Act 

of 1995. 

List of Subjects in 29 CFR Part 1610 

Freedom of Information. 

For the Commission. 

Cari M. Dominguez, 

Chair. 

■ Accordingly, for the reasons set forth 

in the preamble, EEOC amends 29 CFR 

part 1610 as follows: 

PART 1610—AVAILABILITY OF 

RECORDS 

■ 1. The authority citation for part 1610 

continues to read as follows: 

Authority: 42 U.S.C. 2000e–12(a), 5 U.S.C. 

552 as amended by Pub. L. 93–502, Pub. L. 

99–570, and Pub. L. 105–231; for § 1610.15, 

non-search or copy portions are issued under 

31 U.S.C. 9701. 

■ 2. Section 1610.1 is amended by 

adding paragraphs (e) through (i) as 

follows: 

§ 1610.1 Definitions. 

* * * * * 

(e) Direct costs refers to those 

expenses that EEOC actually incurs in 

searching for and duplicating (and, in 

the case of commercial requesters, 

reviewing) records to respond to a 

request. Direct costs include, for 

example, the salary of the employee 

performing the work (the basic rate of 

pay for the employee plus 16 percent of 

that rate to cover benefits) and the cost 

of operating duplicating machinery. Not 

included in direct costs are overhead 

expenses such as costs of space and 

heating or lighting of the facility in 

which the records are stored. 

(f) Search refers to the time spent 

looking for and retrieving material that 

is responsive to a request. It includes 

page-by-page or line-by-line 

identification of information within 

documents and also includes reasonable 

efforts to locate and retrieve information 

from records maintained in electronic 

formats. EEOC employees should ensure 

that searching for materials is done in 

the most efficient and least expensive 

manner reasonably possible. For 

example, employees shall not search 

line-by-line when merely duplicating a 

document would be quicker and less 

expensive. 

(g) Duplication refers to the process of 

making a copy of a record or document 

necessary to respond to a FOIA request. 

Such copies can take the form of paper 

copy, microform, audio-visual materials, 

electronic formats (for example 

magnetic tape or disk), among others. 

Employees shall honor a requester’s 

specified preference of format of 

disclosure if the record is readily 

reproducible with reasonable efforts in 

the requested format by the office 

responding to the request. 

(h) Attestation refers to the 

authentication of copies of Commission 

documents by an affidavit or unsworn 

declaration from the records custodian 

without the Commission Seal. 

(i) Certification refers to the 

authentication of copies of Commission 

documents by an affidavit or unsworn 

declaration from the records custodian 

under the Commission Seal. 

■ 3. Section 1610.15(c) is revised to read 

as follows: 

§ 1610.15 Schedule of fees and method of 

payment for services rendered. 

* * * * * 

(c) Except as otherwise provided, the 

following specific fees for direct costs 

shall be applicable with respect to 

services rendered to members of the 

public under this subpart: 

(1) For manual search and review 

time: 

(i) By clerical personnel—at the rate 

of $5.00 per quarter hour. 

(ii) By paralegals—at the rate of $9.00 

per quarter hour. 

(iii) By professional personnel—at the 

rate of $10.00 per quarter hour. 

(iv) By managers—at the rate of 

$17.50 per quarter hour. 

(v) By SES employees—at the rate of 

$20.00 per quarter hour. 

(2) For computer searches of records, 

requesters will be charged at the actual 

direct cost of providing the service. This 

includes the operator/programmer 

salary apportionable to the search based 

on the rates listed in paragraph (c)(1) of 

this section. 

(3) For copies made by photocopy—

$0.15 per page (maximum of 10 copies). 

For copies prepared by computer, such 

as tapes or printouts, EEOC will charge 

the direct cost incurred by the agency, 

including operator time. For other forms 

of duplication, EEOC will charge the 

actual costs of that duplication. 

(4) For attestation of documents—

$25.00 per authenticating affidavit or 

declaration. Additionally, there may be 

search and review charges assessed in 

accordance with the rates listed in 

paragraph (c)(1) of this section. 

(5) For certification of document—

$50.00 per authenticating affidavit or 

declaration. Additionally, there may be 

search and review charges assessed in 

accordance with the rates listed in 

paragraph (c)(1) of this section. 

(6) For each signed statement of 

negative result of search for record—

$10.00. Additionally, there may be 

search charges assessed in accordance 

with the rates listed in paragraph (c)(1) 

of this section. 

(7) For retrieval of records from a 

Federal Records Center—the amount 

charged to EEOC for retrieval of such 

records. 

(8) All other direct costs of search, 

review, duplication or delivery (other 

than normal mail), shall be charged to 

the requester as appropriate in the same 

amount as incurred by the agency. 

* * * * * 

[FR Doc. 05–19649 Filed 9–30–05; 8:45 am] 

BILLING CODE 6570–01–U 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[Region 2 Docket No. R02–OAR–2005–NY–

0003, FRL–7971–5] 

Approval and Promulgation of 

Implementation Plans; New York State 

Implementation Plan Revision 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: The Environmental Protection 

Agency is approving a revision to the 

New York State Implementation Plan 

(SIP) concerning New York’s permitting 

program. The SIP revision consists of 

amendments to Title 6 of the New York 

Code, Rules and Regulations, Part 201, 

‘‘Permits and Certificates.’’ The 

intended effect of this approval is to 

incorporate administrative changes to 

New York’s permitting program into the 

SIP.