Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Proposed Rules 25601

1Securities Act of 1933, Release No. 5229,

January 25, 1972.

2The Independent Offices Appropriations Act of

1952, specifically 31 U.S.C. 9701, authorizes

independent agencies of the federal government to

prescribe fees and charges for activities that provide

benefits to individuals and businesses. This statute

states that ‘‘It is the sense of Congress that each

service * * * provided by an agency * * * to a

person * * * is to be self-sustaining to the extent

possible.’’ The statute also authorizes the head of

each agency to prescribe regulations establishing

the charge for a service. Notably, a separate

provision of the Securities Exchange Act of 1934

(Exchange Act) specifically authorizes the

Commission to impose fees authorized by this act.

15 U.S.C. 14(g)(4).

3See attached table of IOAA fees. Note that the

Commission’s proposal would only eliminate the

collection of regulatory fees imposed under the

IOAA; it would not affect other fees imposed by

Continued

The Proposal

The FAA is considering an

amendment to part 71 of the Federal

Aviation Regulations (14 CFR part 71) to

establish Class E airspace at Colstrip,

Montana, to accommodate a new GPS

SIAP to the Colstrip Airport. The area

would be depicted on aeronautical

charts for pilot reference. The

coordinates for this airspace docket are

based on North American Datum 83.

Class E airspace areas extending upward

from 700 feet or more above the surface

of the earth are published in Paragraph

6005 of FAA Order 7400.9C dated

August 17, 1995, and effective

September 16, 1995, which is

incorporated by reference in 14 CFR

71.1. The Class E airspace designation

listed in this document would be

published subsequently in the Order.

The FAA has determined that this

proposed 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 would

only affect air traffic procedures and air

navigation, it is certified that this rule,

when promulgated, would 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).

The Proposed Amendment

In consideration of the foregoing, the

Federal Aviation Administration

proposes to amend 14 CFR part 71 as

follows:

PART 71—[AMENDED]

1. The authority citation for 14 CFR

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 7400.9C, Airspace

Designations and Reporting Points,

dated August 17, 1995, and effective

September 16, 1995, is amended as

follows:

Paragraph 6005 Class E airspace areas

extending upward from 700 feet above the

surface of the earth

* * * * *

ANM MT E5 Colstrip, MT

Colstrip Airport, MT

(Lat. 45°51′10′′ N, long. 106°42′34′′ W)

Billings Logan International Airport, MT

(Lat. 45°48′30′′ N, long. 108°32′38′′ W)

That airspace extending upward from 700

feet above the surface within a 13.5-mile

radius of Colstrip Airport; that airspace

extending upward from 1,200 feet above the

surface bounded on the north by the south

edge of V–2, on the east by the west edge of

V–254, on the south along lat. 45°30′00′′ N,

and on the west by the 60-mile arc centered

on Billings Logan International Airport;

excluding the Forsyth and Miles City, MT

Class airspace areas.

* * * * *

Issued in Seattle, Washington, on May 8,

1996.

Richard E. Prang,

Acting Assistant Manager, Air Traffic

Division, Northwest Mountain Region.

[FR Doc. 96–12839 Filed 5–21–96; 8:45 am]

BILLING CODE 4910–13–M

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Parts 230, 240, 250, 270, and

275

[Release Nos. 33–7293; 34–37220; 35–

26517; IC–21961; IA–1563; File No. S7–14–

96]

RIN 3235–AG79

Proposal To Eliminate Fees Previously

Adopted by the Commission Pursuant

to the Independent Offices

Appropriations Act of 1952

AGENCY: Securities and Exchange

Commission.

ACTION: Proposed rule.

SUMMARY: The Securities and Exchange

Commission (Commission) is proposing

to eliminate each of the user fees

currently adopted under the

Independent Offices Appropriations Act

of 1952, in conjunction with rules under

the Securities Act of 1933, the Securities

Exchange Act of 1934, the Public Utility

Holding Company Act of 1935, the

Investment Company Act of 1940, and

the Investment Advisers Act of 1940.

These fees were first adopted in 1972 to

contribute towards the cost of agency

operations. However, since that time,

the amount of fees collected by the

Commission has increased dramatically.

In 1995, the Commission collected

nearly double the amount of fees

required to fund the agency’s

operations.

DATES: Comments must be received on

or before July 8, 1996.

ADDRESSES: All interested persons are

invited to submit their views and

comments concerning the rule proposal

should be submitted in triplicate to

Jonathan G. Katz, Secretary, U.S.

Securities and Exchange Commission,

Mail Stop 6–9, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Comments also

may be submitted electronically at the

following E-mail address: rulecomments@sec.gov. All comment letters

should refer to File Number S7–14–96;

this file number should be included in

the subject line if E-mail is used.

Comment letters will be available for

inspection and copying in the public

reference room at the same address.

Electronically submitted comments will

be posted on the Commission’s Internet

web site (http://www.sec.gov).

FOR FURTHER INFORMATION CONTACT:

Henry I. Hoffman, Office of the

Comptroller, at (202) 942–0343.

SUPPLEMENTARY INFORMATION: Each fee

identified for elimination is listed on

the attached table labeled TABLE OF

IOAA FEES PROPOSED FOR

ELIMINATION.

Proposal

In 1972, to offset the cost to the

government of related Commission

operations, the Securities and Exchange

Commission established through

rulemaking a fee schedule for numerous

types of applications, statements and

reports.1 These regulatory fees,

authorized under Title V of the

Independent Offices Appropriations Act

of 1952 (31 U.S.C.A. 9701), are

commonly referred to as IOAA fees.2

Today, the Commission is proposing

the elimination of each of its current

IOAA fees.3 The collection of these fees
25602 Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Proposed Rules

statute that are also collected by the Commission.

These statutory fees include registration fees

collected pursuant to Section 6(b) of the Securities

Act of 1933 (Securities Act) and Section 307(b) of

the Trust Indenture Act of 1939, going private fees

collected pursuant to Section 13 of the Exchange

Act, proxy and tender offer fees collected pursuant

to Section 14 of the Exchange Act, and transaction

fees collected pursuant to Section 31 of the

Exchange Act.

4The vast increase in Commission fee revenue

between 1972 and 1995 has developed from two

basic sources. First is a significant increase in the

underlying value of the securities on which the

statutory fees are based. The underlying value of

securities registered with the Commission under

Section 6(b) of the Securities Act increased from

$62 billion to $1.2 trillion from 1972 to 1995.

Further, during the same period, the value of shares

transacted on the U.S. securities exchanges and

subject to a fee under Section 31 of the Exchange

Act increased from $196 billion to $3 trillion.

Second is the increased use of offsetting collections

under Section 6(b) of the Securities Act to fund

agency operations since 1990. The amount of

offsetting revenue collected under Section 6(b) in

1991, the first year fee revenue was used to directly

offset Commission funding, was $37 million at a fee

rate of 1⁄40 of one percent, and in 1995 was $157

million at an increased fee rate of 1⁄29 of one

percent.

5Senate Report 100–105, 100th Cong., 1st

Session, and, in response, Commission issued

findings in a U.S. Securities and Exchange

Commission ‘‘Self Funding Study’’ (January 1989)

and accompanying ‘‘Legislative Proposals and Fee

Options’’ (January 1989).

6H.R. 2239, Section 31A.(a).

7Letter dated April 6, 1995, from Senator

D’Amato, Chairman of the Senate Banking

Committee, to Senators Domenici and Exon,

respectively Chairman and Ranking Member of the

Senate Committee on the Budget.

8H.R. 2972, Section 2(2).

9 Ibid, Section 7(1) states that ‘‘the fees authorized

by the amendments made by this Act are in lieu of,

and not in addition to, any fees that the Securities

and Exchange Commission is authorized to impose

or collect pursuant to Section 9701 of title 31,

United States Code * * *’’.

is no longer appropriate since the

amount of revenue currently generated

by statutory fees imposed under the

securities laws far exceeds the annual

cost of Commission operations. The

additional revenue added by the IOAA

fees is an insignificant portion of the

total revenue received. In fiscal 1972,

the Commission collected $19 million

in fees and cost $27 million to operate.

IOAA fees represented 12 percent of the

total 1972 revenue. In fiscal 1995, the

Commission collected $559 million in

fees and was appropriated $297 million

for operating costs. IOAA fees

represented just 2 percent of the total

1995 revenue.4

This significant difference between

the amount of fee revenue collected by

the Commission and the amount of its

annual funding level has been of

continuing concern to Congress. In

1988, the Securities Subcommittee of

the Senate Committee on Banking,

Housing and Urban Affairs directed the

Commission to study its fee structure

and funding status (Commission Fee

Study).5

As a result of the Commission Fee

Study and continuing Congressional

concerns about the level of the

Commission’s fees, in 1993 the House

passed H.R. 2239, the Securities and

Exchange Commission Authorization

Act of 1993. One of the stated purposes

of this bill was to ‘‘establish a system for

the annual adjustment of fees collected

by the Commission so that the total

amount appropriated to the Commission

for any fiscal year will be offset by the

amount collected during such fiscal year

* * *’’ 6

Although Congress did not enact H.R.

2239, in 1995 members of the

Commission’s authorization committee

in the Senate stated that the total

amount of fees collected annually by the

agency far exceed the cost of its

regulation and, therefore, should be

reduced.7

On March 12, 1996, the House passed

H.R. 2972, the ‘‘Securities and Exchange

Commission Authorization Act of

1996.’’ This bill has as a major purpose,

‘‘to reduce over time the rates of fees

charged under the Federal securities

laws.’’ 8 Notably, H.R. 2972 contains a

sense of the Congress resolution that the

Commission should eliminate its fees

imposed under the IOAA.9

The Commission is proposing to

eliminate IOAA fees for two additional

reasons. First, the Commission is

committed, consistent with its mission

of investor protection, to eliminate

unnecessary regulations imposed on the

capital formation process. The

Commission has determined that

eliminating these IOAA fees will reduce

such burdens but neither harm investors

nor the Commission’s mission to protect

them. Second, the collection of these

IOAA fees imposes a disproportionate

cost on the Commission. In 1995, IOAA

fees represented less than 2% of the

total fee revenue collected by the

Commission, but more than one-half of

the total number of fee payments

processed by Commission staff, making

recordkeeping for these fees

disproportionately costly.

Cost/Benefit Analysis

Comments are requested related to

any costs or benefits associated with the

elimination of the Commission’s current

IOAA fees. The elimination of IOAA

fees will provide an obvious benefit to

persons obligated to pay such fees, i.e.,

they will no longer have to pay the fees.

In addition, the Commission will avoid

the costs associated with processing and

auditing the collection of such fees;

Commission resources spent on those

tasks will be reallocated to other

mandated tasks. Other costs and

benefits are expected to be de minimis.

Summary of Regulatory Flexibility

Analysis

The Commission has prepared an

Initial Regulatory Flexibility Analysis in

accordance with 5 U.S.C. 603 regarding

the proposed rule changes. The analysis

reiterates the reasons and objectives for

the proposed rule changes discussed

above in this release. The analysis also

describes the legal basis for the proposal

and discusses its effect on small entities

as defined by the Securities Act, the

Exchange Act, the Public Utility

Holding Company Act of 1935, the

Investment Company Act of 1940, and

the Investment Advisers Act of 1940.

This proposed rule imposes no

additional reporting, recordkeeping or

other compliance requirements on small

businesses, and the Commission

believes that there are no overlapping or

conflicting federal rules. In addition, the

Commission does not believe that any

significant alternative to the proposal

would both accomplish the stated

objectives and minimize any significant

impact on small companies. In fact, the

alternatives to eliminating the fee would

be to maintain or increase the current

fees. Neither alternative provides any

increased benefit nor is appropriate in

the public interest. The Commission

encourages the submission of written

comments with respect to the Initial

Regulatory Flexibility Analysis. A copy

of the Initial Regulatory Flexibility

Analysis may be obtained by contacting

Henry I. Hoffman, Securities and

Exchange Commission, Office of the

Comptroller, Room 2080, Washington,

D.C. 20549.

Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the proposed

elimination of IOAA fees does not

impose recordkeeping or information

collection requirements, or other

collections of information which require

the approval of the Office of

Management and Budget under 44

U.S.C. 3501 et seq.

Statutory Basis: The Commission’s

authority for this action is 31 U.S.C. 9701 and

15 U.S.C. 14(g)(4).
Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Proposed Rules 25603

SECURITIES AND EXCHANGE COMMISSION TABLE OF IOAA FEES PROPOSED FOR ELIMINATION

Fee cite Rule/form/schedule Amount Description

Securities Act of 1933

17 CFR 230.236(a),(c) ............................................ Rule 236 ........................ $100 Exemption of shares offered in connection with

certain transactions.

17 CFR 230.252(f) .................................................. Form 1–A ....................... 500 Offering statement under Regulation A.

17 CFR 230.310(a) ................................................. Schedules A, B, C or D 100 Offering sheet under Regulation B.

17 CFR 230.604(a) ................................................. Form 1–E ....................... 100 Notification of offering under Regulation E by a

small business investment company.

17 CFR 230.652. .................................................... Form 1–F ....................... 100 Notification under Regulation F.

Securities Exchange Act of 1934

17 CFR 240.0–11(c)(1)(ii) ....................................... Schedule 14A ................ 125 Proxy Statement.

17 CFR 240.0–11(c)(1)(ii) 17 CFR 240.14c–5(g) ... Schedule 14C ................ 125 Information Statement.

17 CFR 240.12b–7 ................................................. Form 8–A ....................... 250 Registration of certain classes of securities pursuant to Section 12(b) or (g).

17 CFR 240.12b–7 ................................................. Form 8–B ....................... 250 Registration of securities of certain successor issuers pursuant to Section 12(b) or (g).

17 CFR 240.12b–7 ................................................. Form 10 ......................... 250 General form for registration of securities pursuant to Section 12(b) or (g).

17 CFR 240.12b–7 ................................................. Form 10–SB .................. 250 Optional form for the registration of securities of a

small business issuer.

17 CFR 240.12b–7 ................................................. Form 18 ......................... 250 Application for registration of securities of foreign

governments and political subdivisions thereof.

17 CFR 240.12b–7, 17 CFR 240.13a–1, 17 CFR

240.15d–1.

Form 20–F ..................... 250 Registration of securities of foreign private issuers

pursuant to Section 12 (b) or (g) and annual reports pursuant to Sections 13 and 15(d)

17 CFR 240.12b–7, 17 CFR 240.13a–1, 17 CFR

240.15d–1.

Form 40–F ..................... 250 Registration of securities of certain Canadian issuers pursuant to Section 12(b) or (g) and for

reports pursuant to Section 15(d) and Rule

15d–4.

17 CFR 240.13a–1, 17 CFR 240.15d–1 ................ Form 10–K ..................... 250 Annual report pursuant to Sections 13 and 15(d).

17 CFR 240.13a–1, 17 CFR 240.15d–1 ................ Form 10–KSB ................ 250 Optional form for annual report of small business

issuers under Sections 13 and 15(d).

17 CFR 240.13a–1 ................................................. Form 18–K ..................... 250 Annual report for foreign governments and political subdivisions thereof.

17 CFR 240.13d–7 ................................................. Schedule 13D, Schedule

13D/A (if amended to

>5%).

100 Schedule for reporting beneficial ownership of

more than five percent in an equity security.

17 CFR 240.13d–7 ................................................. Schedule 13G, Schedule

13G/A (if amended to

>5%).

100 Short form schedule for reporting beneficial ownership of more than five percent in an equity

security

17 CFR 240.14a–6(i) .............................................. Schedule 14A ................ 125/500 Proxy Statement.

17 CFR 240.14a–101 (Item 22(a)(2)) ..................... Schedule 14A ................ 125 Proxy filing fee for investment companies.

17 CFR 240.15d–1 ................................................. Form 11–K ..................... 250 Annual report for employee stock purchase savings and similar plans.

Public Utility Holding Company Act of 1935

17 CFR 250.1(d) ..................................................... Form U5S ...................... 250 Annual report of registered holding company.

17 CFR 250.94(b) ................................................... Form U–13–60 ............... 250 Annual report of mutual or subsidiary service

company.

17 CFR 250.106 ..................................................... Form U–1 ....................... 2,000 Application-declaration statement.

17 CFR 250.106 ..................................................... Form U–3A–2 ................ 2,000/500 Annual holding company exemption statement.

17 CFR 250.106 ..................................................... Form U–3A3–1 .............. 500 Bank exemption statement.

17 CFR 250.106 ..................................................... Form U–13–1 ................. 2,000 Application for approval of mutual or subsidiary

service company.

17 CFR 250.106 ..................................................... Form U–7D .................... 200/100 Certificate of lease of utility facilities.

17 CFR 250.106 ..................................................... Form U–R–1 .................. 2,000 Declaration regarding a reorganization.

Investment Company Act of 1940

17 CFR 240.14a–101 (Item 22(a)(2)) ..................... Schedule 14A ................ 125 Proxy filing fee.

17 CFR 270.0–5(d) ................................................. Rule 0–5 ........................ 500 Application under the 1940 Act.

17 CFR 270.8b–6 ................................................... Rule 8b–6, Forms N–1A,

N–2, N–3, N–4 and

N–5.

1,000 1940 Act registration fee.

17 CFR 270.24f–2(a)(3) .......................................... Rule 24f–2 ..................... 500 Registration of an indefinite amount of securities.

17 CFR 270–30a–1 ................................................ Rule 30–1 ...................... 125 Form N-SAR filing fee.
25604 Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Proposed Rules

SECURITIES AND EXCHANGE COMMISSION TABLE OF IOAA FEES PROPOSED FOR ELIMINATION—Continued

Fee cite Rule/form/schedule Amount Description

Investment Advisers Act of 1940 (‘‘Advisers Act’’)

17 CFR 275.0–5(d) ................................................. Rule 0–5 ........................ 150 Application under the Advisers Act.

17 CFR 275.203–3(a) ............................................. Rule 203–3 .................... 150 Advisers Act registration fee.

1 (First/subseq.).

Dated: May 16, 1996.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–12777 Filed 5–21–96; 8:45 am]

BILLING CODE 8010–01–P

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 291

RIN 1076–AD67

Establishing Departmental Procedures

To Authorize Class III Gaming on

Indian Lands When a State Raises an

Eleventh Amendment Defense To Suit

Under the Indian Gaming Regulatory

Act

AGENCY: Bureau of Indian Affairs,

Interior.

ACTION: Correction.

SUMMARY: This document corrects the

name of the issuing agency and the CFR

part number for the advance notice of

proposed rulemaking regarding Class III

Indian gaming on Indian lands

published on May 10, 1996.

FOR FURTHER INFORMATION CONTACT:

George Skibine, Director, Indian Gaming

Management Staff, (202) 219–4066.

SUPPLEMENTARY INFORMATION: Beginning

on page 21394 in the issue of Friday,

May 10, 1996, make the following

corrections on page 21394:

1. In the heading of the document,

under the heading ‘‘Department of the

Interior,’’ the issuing agency was

previously listed as the National Indian

Gaming Commission. This should be

changed to read Bureau of Indian

Affairs.

2. In the CFR heading of the

document, the CFR citation was

previously listed as 25 CFR Part 525.

This should be changed to read 25 CFR

Part 291.

3. The agency in the AGENCY caption

is corrected to read ‘‘Bureau of Indian

Affairs, Interior.’’

Dated: May 16, 1996.

Ada E. Deer,

Assistant Secretary—Indian Affairs.

[FR Doc. 96–12763 Filed 5–21–96; 8:45 am]

BILLING CODE 4310–02–M

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 82

[FRL–5507–6]

RIN 2060–AG12

Protection of Stratospheric Ozone:

Listing of Substitutes for OzoneDepleting Substances

AGENCY: Environmental Protection

Agency.

ACTION: Notice of proposed rulemaking.

SUMMARY: This action proposes

restrictions or prohibitions on

substitutes for ozone depleting

substances ((ODS)) under the U.S.

Environmental Protection Agency (EPA)

Significant New Alternatives Policy

(SNAP) program. SNAP implements

section 612 of the amended Clean Air

Act of 1990 which requires EPA to

evaluate and regulate substitutes for the

ODS to reduce overall risk to human

health and the environment. Through

these evaluations, SNAP generates lists

of acceptable and unacceptable

substitutes for each of the major

industrial use sectors. The intended

effect of the SNAP program is to

expedite movement away from ozone

depleting compounds while avoiding a

shift into high-risk substitutes posing

other environmental problems.

On March 18, 1994, EPA promulgated

a final rulemaking setting forth its plan

for administering the SNAP program (59

FR 13044), and issued decisions on the

acceptability and unacceptability of a

number of substitutes. In this Notice of

Proposed Rulemaking (NPRM), EPA is

issuing its preliminary decisions on the

acceptability of certain substitutes not

previously reviewed by the Agency. To

arrive at determinations on the

acceptability of substitutes, the Agency

completed a cross-media evaluation of

risks to human health and the

environment by sector end-use.

DATES: Written comments or data

provided in response to this document

must be submitted by June 21, 1996. A

public hearing, if requested, will be held

in Washington, D.C. Any hearing will be

strictly limited to the subject matter of

this proposal, the scope of which is

discussed below. If such a hearing is

requested, it will be held on June 6,

1996, and the comment period would

then be extended to July 8, 1996.

Anyone who wishes to request a hearing

should call Sally Rand at (202) 233–

9739 by May 29, 1996. Interested

persons may contact the Stratospheric

Protection Hotline at 1–800–296–1996

to learn if a hearing will be held and to

obtain the date and location of the

hearing.

ADDRESSES: Public Comments. Written

comments and data should be sent to

Docket A–91–42, Central Docket

Section, South Conference Room 4, U.S.

Environmental Agency, 401 M Street,

SW., Washington, DC 20460. The docket

may be inspected between 8 a.m. and

4:00 p.m. on weekdays. Telephone (202)

260–7549; fax (202) 260–4400. As

provided in 40 CFR part 2, a reasonable

fee may be charged for photocopying.

To expedite review, a second copy of

the comments should be sent to Sally

Rand, Stratospheric Protection Division,

Office of Atmospheric Programs, U.S.

EPA, 401 M Street, SW., 6205–J,

Washington, DC. 20460. Information

designated as Confidential Business

Information (CBI) under 40 CFR part 2

subpart B must be sent directly to the

contact person for this notice. However,

the Agency is requesting that all

respondents submit a non-confidential

version of their comments to the docket

as well.

FOR FURTHER INFORMATION CONTACT:

Nancy Smagin at (202) 233–9126 or fax

(202) 233–9577, Stratospheric

Protection Division, USEPA, Mail Code

6205J, 401 M Street, SW, Washington,

DC 20460.

SUPPLEMENTARY INFORMATION:

I. Overview of This Action

This action is divided into five

sections, including this overview: