Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Proposed Rules 3665 

2 The commenters included Members of 

Congress, officials at federal, state, and local 

government health agencies, the largest smokeless 

tobacco manufacturer, the smokeless tobacco trade 

association, a manufacturer of cigarettes and 

smokeless tobacco products, public health 

organizations, and individuals. 

1 The comments were filed by Members of 

Congress, a state governor, four manufacturers of 

smokeless tobacco products, state health agencies, 

a local chamber of commerce, public health and 

public interest organizations, representatives of 

event-related businesses such as arenas, race track 

owners, team owners, sports sanctioning bodies, 

sporting event announcers, and racing car drivers, 

as well as other individuals. 

if appropriate, smokeless tobacco plans 

specifying how affected companies 

planned to comply with the rotational 

warning requirements specified in the 

Smokeless Tobacco Act and the 

implementing regulations. 

On March 7, 2000, the Commission 

published a request for public comment 

on the regulations, 65 FR 11944, as part 

of its periodic review of its trade 

regulation rules and guides. The 

purpose of the review was to determine 

whether the existing smokeless tobacco 

regulations continued to meet the goals 

of the Smokeless Tobacco Act and to 

provide the protections intended when 

they were promulgated. The comment 

period was extended twice in 2000, 65 

FR 26534 (May 8, 2000) and 65 FR 

60899 (Oct. 13, 2000). The request for 

comments elicited 39 written 

responses.2 Virtually all of the 

comments supported the continuation 

of health warnings on smokeless 

tobacco packages and in advertising. 

Most comments also recommended that 

the FTC amend its regulations to require 

stronger, more effective, and more 

enforceable health warning 

requirements. Members of the smokeless 

tobacco industry recommended against 

any amendments, stating that the 

existing regulations effectively served 

the purpose of the Smokeless Tobacco 

Act. 

On June 22, 2009, President Obama 

signed into law the Family Smoking 

Prevention and Tobacco Control Act, 

Pub. L. No. 111-31, 123 Stat. 1776 

(2009) (‘‘Family Smoking Prevention 

Act’’). The Family Smoking Prevention 

Act, among other things, amends the 

Smokeless Tobacco Act to require new 

size, format, and display requirements 

for the statutory health warnings, and to 

transfer authority over the review and 

approval of rotational warning plans to 

the Secretary of the Department of 

Health and Human Services (‘‘DHHS’’). 

The Family Smoking Prevention Act 

also gives the Secretary of the DHHS 

authority to change the warning 

statements and to change the size, 

format, and display requirements of 

those warnings. The statute specifies 

that the new warning scheme for 

smokeless tobacco products will become 

effective by July 2010. 

Given the new statutory size, format, 

and display requirements, and the 

transfer of authority over the health 

warnings to the DHHS, the 

Commission’s regulatory review has 

been terminated. 

By direction of the Commission. 

Donald S. Clark, 

Secretary. 

[FR Doc. 2010–1043 Filed 1–21–10; 8:45 am] 

BILLING CODE 6750–01–S 

FEDERAL TRADE COMMISSION 

16 CFR Part 307 

Regulations under the Comprehensive 

Smokeless Tobacco Health Education 

Act; Termination of Rulemaking 

Proceeding 

AGENCY: Federal Trade Commission. 

ACTION: Notice of Termination of 

Rulemaking Proceeding. 

SUMMARY: The Federal Trade 

Commission (‘‘FTC’’ or ‘‘Commission’’) 

has terminated its rulemaking 

concerning a proposed amendment to 

its regulations (‘‘smokeless tobacco 

regulations’’), , implementing the 

Comprehensive Smokeless Tobacco 

Health Education Act of 1986 

(‘‘Smokeless Tobacco Act’’). The 

proposed amendment expressly 

provided that sponsored racing vehicles 

and other event-related objects that 

display the brand name, logo, or selling 

message of smokeless tobacco products 

are advertising subject to the Smokeless 

Tobacco Act and the Commission’s 

implementing regulations. In addition, 

the proposal set out a method for the 

display and rotation of the statutory 

health warnings on the objects subject to 

the amendment. 

EFFECTIVE DATE: December 3, 2009. 

ADDRESSES: Requests for copies of this 

notice should be sent to the Consumer 

Response Center, Room 130, Federal 

Trade Commission, 600 Pennsylvania 

Ave., NW, Washington, DC 20580. The 

notice also is available on the Internet 

on the Commission’s Web site, (http:// 

www.ftc.gov). 

FOR FURTHER INFORMATION CONTACT: 

Shira Modell, Division of Advertising 

Practices, Bureau of Consumer 

Protection, Federal Trade Commission, 

600 Pennsylvania Ave., NW, 

Washington, DC 20580, 202-326-3116. 

SUPPLEMENTARY INFORMATION: In 1991, 

the Coalition on Smoking OR Health 

petitioned the Commission to enforce 

the Smokeless Tobacco Act by requiring 

rotational health warnings on sponsored 

racing cars, banners, flags, and other 

event-related objects. On November 4, 

1993 (58 FR 58810), the FTC published 

a Notice of Proposed Rulemaking 

(‘‘Notice’’) requesting public comment 

on a proposed amendment to the 

Commission’s smokeless tobacco 

regulations that expressly provided that 

sponsored racing vehicles and other 

event-related objects bearing smokeless 

tobacco brand names, logos, or selling 

messages are subject to the statutory 

health warning requirements. The 

Notice also set out a method for 

displaying and rotating the health 

warnings on the objects encompassed by 

the proposed amendment. 

During the public comment period, 

the Commission received approximately 

217 substantive comments, numerous 

petitions signed by members of specific 

racing teams, and about 53,000 

postcards.1 Of the substantive 

comments, 200 opposed the proposed 

regulations and 17 supported the 

proposal to require warnings on 

vehicles and other event-related objects. 

The race team petitions likewise 

generally opposed the proposal, and the 

postcards contained a pre-printed 

message opposing the proposal. 

On June 22, 2009, President Obama 

signed into law the Family Smoking 

Prevention and Tobacco Control Act, 

Pub. L. No. 111-31, 123 Stat. 1776 

(2009) (‘‘Family Smoking Prevention 

Act’’). The Family Smoking Prevention 

Act, among other things, transfers 

authority over the size, format, and 

display of the smokeless tobacco health 

warnings to the Secretary of the 

Department of Health and Human 

Services (‘‘DHHS’’). Thus, pursuant to 

the Family Smoking Prevention Act, 

determinations as to whether and how 

to display and rotate warnings on 

various objects or vehicles will be made 

by DHHS. Further, the Family Smoking 

Prevention Act directs the DHHS to reissue its Regulations Restricting the Sale 

and Distribution of Cigarettes and 

Smokeless Tobacco to Protect Children 

and Adolescents, 61 FR 44615-618 (Aug. 

28, 1996). Those regulations would 

prohibit cigarette and smokeless tobacco 

manufacturers from sponsoring athletic 

and entertainment events using brand 

names, logos, or selling messages. 

Given these legislative and likely 

regulatory changes, the Commission has 

determined that it would be more 

appropriate for the DHHS to consider 

the issues raised in this rulemaking 

proceeding. Accordingly, the 

Commission concludes that it is not in 


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3666 Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Proposed Rules 

the public interest to continue this 

proceeding and it hereby gives notice of 

its termination. 

By direction of the Commission. 

Donald S. Clark, 

Secretary. 

[FR Doc. 2010–1041 Filed 1–21–10: 8:45 am] 

BILLING CODE 6750–01–S 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–101896–09] 

RIN 1545–BI66 

Basis Reporting by Securities Brokers 

and Basis Determination for Stock; 

Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correction to a notice of 

proposed rulemaking. 

SUMMARY: This document contains 

corrections to a notice of proposed 

rulemaking that was published in the 

Federal Register on Thursday, 

December 17, 2009, relating to reporting 

sales of securities by brokers and 

determining the basis of securities. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations 

under section 1012, Edward C. 

Schwartz, (202) 622–4960; Concerning 

the proposed regulations under sections 

3406, 6045, 6045A, 6045B, 6721, and 

6722, Stephen Schaeffer, (202) 622– 

4910 (not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

A notice of proposed rulemaking that 

is the subject of this document is under 

sections 408, 1012, 6039, 6042, 6044, 

6045, 6045A, 6045B and 6049 of the 

Internal Revenue Code. 

Need for Correction 

As published, a notice of proposed 

rulemaking (REG–101896–09), 

published Thursday, December 17, 2009 

(74 FR 67010), contains errors that may 

prove to be misleading and are in need 

of clarification. 

Correction of Publication 

Accordingly, the publication of a 

notice of proposed rulemaking (REG– 

101896–09), which was the subject of 

FR Doc. E9–29855, is corrected as 

follows: 

1. On page 67013, column 3, in the 

preamble, under paragraph heading ‘‘a. 

Form and Manner of New Broker 

Reporting Requirements’’, last line of the 

first paragraph of the column, the 

language ‘‘pub/irs-dft/f1099k-dft.pdf.’’ is 

corrected to read ‘‘pub/irs-dft/f1099b-- 

dft.pdf.’’. 

§ 1.6045–1 [Corrected] 

2. On page 67035, column 2, 

paragraph (f)(2)(i), lines 6 thru 8, the 

language ‘‘shall show on Form 1099, 

‘‘U.S. Information Return for Calendar 

Year 1971,’’ or any successor form the 

name,’’ is corrected to read ‘‘shall show 

on Form 1099–B, ‘‘Proceeds from Broker 

and Barter Exchange Transactions,’’ or 

any successor form the name’’. 

Guy R. Traynor, 

Acting Chief, Publications and Regulations 

Branch, Legal Processing Division, Associate 

Chief Counsel (Procedure and 

Administration). 

[FR Doc. 2010–1122 Filed 1–21–10; 8:45 am] 

BILLING CODE 4830–01–P 

LIBRARY OF CONGRESS 

Copyright Royalty Board 

37 CFR Part 383 

[Docket No. 2009–2 CRB New Subscription 

II] 

Digital Performance Right in Sound 

Recordings and Ephemeral 

Recordings for a New Subscription 

Service 

AGENCY: Copyright Royalty Board, 

Library of Congress. 

ACTION: Proposed rule. 

SUMMARY: The Copyright Royalty Judges 

are publishing for comment proposed 

regulations that set the rates and terms 

for the use of sound recordings in 

transmissions made by new 

subscription services and for the making 

of ephemeral recordings necessary for 

the facilitation of such transmissions for 

the period commencing January 1, 2011, 

and ending on December 31, 2015. 

DATES: Comments and objections, if any, 

are due by no later than February 22, 

2010. 

ADDRESSES: Comments and objections 

may be sent electronically to 

crb@loc.gov. In the alternative, send an 

original, five copies and an electronic 

copy on a CD either by mail or hand 

delivery. Please do not use multiple 

means of transmission. Comments and 

objections may not be delivered by an 

overnight delivery service other than 

U.S. Postal Service Express Mail. If by 

mail (including overnight delivery), 

comments and objections must be 

addressed to: Copyright Royalty Board, 

P.O. Box 70977, Washington, DC 20024– 

0977. If hand delivered by a private 

party, comments and objections must be 

brought to the Copyright Office Public 

Information Office, Library of Congress, 

James Madison Memorial Building, 

Room LM–401, 101 Independence 

Avenue, SE., Washington, DC 20559– 

6000, between 8:30 a.m. and 5 p.m. If 

delivered by commercial courier, 

comments and objections must be 

delivered between 8:30 a.m. and 4 p.m. 

to the Congressional Courier Acceptance 

Site located at 2nd and D Street, NE., 

Washington, DC, and the envelope must 

be addressed as follows: Copyright 

Royalty Board, Library of Congress, 

James Madison Memorial Building, 

Room LM–403, 101 Independence 

Avenue, SE., Washington, DC 20559– 

6000. 

FOR FURTHER INFORMATION CONTACT: 

Richard Strasser, Senior Attorney, or 

Gina Giuffreda, Attorney Advisor, by 

telephone at (202) 707–7658 or by email at crb@loc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

Section 114(f)(2)(C) of the Copyright 

Act, title 17 of the United States Code, 

allows a new type of eligible 

nonsubscription service or a new 

subscription service on which sound 

recordings are performed that is or is 

about to become operational to file a 

petition with the Copyright Royalty 

Judges (‘‘Judges’’) for the purpose of 

determining reasonable terms and rates. 

17 U.S.C. 114(f)(2)(C). Section 112(e) 

allows the making of ephemeral 

reproductions for the purpose of 

facilitating certain digital audio 

transmissions, including those made by 

new subscription services. 17 U.S.C. 

112(e). Upon receipt of a petition filed 

pursuant to section 114(f)(2)(C), the 

Judges are required to commence a 

proceeding to determine said reasonable 

terms and rates. 17 U.S.C. 

804(b)(3)(C)(ii). The Judges have 

conducted one proceeding pursuant to 

these provisions. See 70 FR 72471, 

72472 (December 5, 2005) (after receipt 

of petition, commencing proceeding to 

determine rates and terms for a new 

type of subscription service that 

‘‘performs sound recordings on digital 

audio channels programmed by the 

licensee for transmission by a satellite 

television distribution service to its 

residential customers, where the audio 

channels are bundled with television 

channels as part of a ‘basic’ package of 

service and not for a separate fee’’). The 

parties to that proceeding ultimately 

reached an agreement on the rates and 


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