27818 Federal Register / Vol. 61, No. 107 / Monday, June 3, 1996 / Proposed Rules

the exceptions listed in § 229.13 of the

regulation. In disclosing that a longer delay

may apply, a bank may disclose when funds

will generally be available based on when the

funds would be available if the deposit were

of a nonlocal check.

5. Model C–4 Holds to statutory limits on

all deposits. A bank may use this model

when its when its policy is to impose delays

to the full extent allowed under § 229.12 and

to reserve the right to invoke the § 229.13

exceptions. In disclosing that a longer delay

may apply, a bank may disclose when funds

will generally be available based on when the

funds would be available if the deposit were

of a nonlocal check. Model C–4 uses a chart

to show the bank’s availability policy for

local and nonlocal checks and Model C–5

uses a narrative description.

6. Model C–5 Holds to statutory limits on

all deposits. A bank may use this model

when its policy is to impose delays to the full

extent allowed under § 229.12 and to reserve

the right to invoke the § 229.13 exceptions.

In disclosing that a longer delay may apply,

a bank may disclose when funds will

generally be available based on when the

funds would be available if the deposit were

of a nonlocal check.

C. Model Clauses, Models C–6 Through C–11

1. Models C–6 through C–11 generally.

Certain clauses like those in the models must

be incorporated into a bank’s availability

policy disclosure under certain

circumstances. The commentary to each

clause indicates when a clause similar to the

model clause is required.

2. Model C–6 Holds on other funds (check

cashing). A bank that reserves the right to

place a hold on funds already on deposit

when it cashes a check for a customer, as

addressed in § 229.19(e), must incorporate

this type of clause in its availability policy

disclosure.

3. Model C–7 Holds on other funds (other

account). A bank that reserves the right to

place a hold on funds in an account of the

customer other than the account into which

the deposit is made, as addressed in

§ 229.19(e), must incorporate this type of

clause in its availability policy disclosure.

4. Model C–8 Appendix B availability

(nonlocal checks). A bank in a check

processing region where the availability

schedules for certain nonlocal checks have

been reduced, as described in Appendix B of

Regulation CC, must incorporate this type of

clause in its availability policy disclosure.

Banks using Model C–5 may insert this

clause at the conclusion of the discussion

titled ‘‘Nonlocal checks.’’

5. Model C–9 Automated teller machine

deposits (extended holds). A bank that

reserves the right to delay availability of

deposits at nonproprietary ATMs until the

fifth business day following the date of

deposit, as permitted by § 229.12(f)(1), must

incorporate this type of clause in its

availability policy disclosure. A bank must

choose among the alternative language based

on how it chooses to differentiate between

proprietary and nonproprietary ATMs, as

required under § 229.16(b)(5).

6. Model C–10 Cash withdrawal

limitation. A bank that imposes cash

withdrawal limitations under § 229.12 must

incorporate this type of clause in its

availability policy disclosure. Banks

reserving the right to impose the cash

withdrawal limitation and using Model C–3

should disclose that funds may not be

available until the sixth (rather than fifth)

business day in the first paragraph under the

heading ‘‘Longer Delays May Apply.’’

7. Model C–11 Credit union interest

payment policy. A credit union subject to the

notice requirement of § 229.14(b)(2) must

incorporate this type of clause in its

availability policy disclosure. This model

clause is only an example of a hypothetical

policy. Credit unions may follow any policy

for accrual provided the method of accruing

interest is the same for cash and check

deposits.

D. Model Notices, Models C–12 Through C–

21

1. Model Notices C–12 through C–21

generally. Models C–12 through C–21

provide models for the various notices

required by the regulation.

2. Model C–12 Exception hold notice.

This model satisfies the written notice

required under § 229.13(g) when a bank

places a hold based on a § 229.13 exception.

If the bank places the hold on other funds

(see § 229.19(e)), the notice should be

modified accordingly. If a hold is being

placed on more than one check in a deposit,

each check need not be described, but if

different reasons apply, each reason must be

indicated. A bank may use the actual date

when funds will be available for withdrawal

rather than the number of the business day

following the day of deposit. A bank must

incorporate in the notice the material set out

in brackets if it imposes overdraft or returned

check fees after invoking the reasonable

cause exception under § 229.13(e).

3. Model C–13 Reasonable cause hold

notice. This notice satisfies the written notice

required under § 229.13(g) when a bank

invokes the reasonable cause exception

under § 229.13(e). If the bank places the hold

on other funds (see § 229.19(e)), the notice

should be modified accordingly. The notice

provides the bank with a list of specific

reasons that may be given for invoking the

exception. If a hold is being placed on more

than one check in a deposit, each check must

be described separately, and if different

reasons apply, each reason must be

indicated. A bank may disclose its reason for

doubting collectibility by checking the

appropriate reason on the model. If the

‘‘Other’’ category is checked, the reason must

be given. A bank may use the actual date

when funds will be available for withdrawal

rather than the number of the business day

following the day of deposit. A bank must

incorporate in the notice the material set out

in brackets if it imposes overdraft or returned

check fees after invoking the reasonable

cause exception under § 229.13(e).

4. Model C–14 One-time notice for large

deposit and redeposited check exception

holds. This model satisfies the notice

requirements of § 229.13(g)(2) concerning

nonconsumer accounts. If the bank places the

hold on other funds (see § 229.19(e)), the

notice should be modified accordingly.

5. Model C–15 One-time notice for

repeated overdraft exception hold. This

model satisfies the notice requirements of

§ 229.13(g)(3). If the bank places the hold on

other funds (see § 229.19(e)), the notice

should be modified accordingly.

6. Model C–16 Case-by-case hold notice.

This model satisfies the notice required

under § 229.16(c)(2) when a bank with a caseby-case hold policy imposes a hold on a

deposit. If the bank places the hold on other

funds (see § 229.19(e)), the notice should be

modified accordingly. This notice does not

require a statement of the specific reason for

the hold, as is the case when a § 229.13

exception hold is placed. A bank may specify

the actual date when funds will be available

for withdrawal rather than the number of the

business day following the day of deposit

when funds will be available. A bank must

incorporate in the notice the material set out

in brackets if it imposes overdraft fees after

invoking a case-by-case hold.

7. Model C–17 Notice at locations where

employees accept consumer deposits and

Model C–18 Notice at locations where

employees accept consumer deposits (caseby-case holds). These models satisfy the

notice requirement of § 229.18(b). Model C–

17 reflects an availability policy of holds to

statutory limits on all deposits, and Model C–

18 reflects a case-by-case availability policy.

8. Model C–19 Notice at automated teller

machines. This model satisfies the ATM

notice requirement of § 229.18(c)(1).

9. Model C–20 Notice at automated teller

machines (delayed receipt). This model

satisfies the ATM notice requirement of

§ 229.18(c)(2) when receipt of deposits at offpremises ATMs is delayed under

§ 229.19(a)(4). It is based on collection of

deposits once a week. If collections occur

more or less frequently, the description of

when deposits are received must be adjusted

accordingly.

10. Model C–21 Deposit slip notice. This

model satisfies the notice requirements of

§ 229.18(a) for deposit slips.

By order of the Board of Governors of the

Federal Reserve System, May 15, 1996.

William W. Wiles,

Secretary of the Board.

[FR Doc. 96–13880 Filed 5–31–96; 8:45 a.m.]

BILLING CODE 6210–01–P

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Part 250

[Docket No. OST–96–1255 Notice 96–7]

RIN 2105–AC45

Oversales Signs

AGENCY: Office of the Secretary, DOT.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Department proposes to

eliminate a consumer notice about

airline oversales that is required to

appear on signs at airports, city ticket

offices, and travel agencies, on the basis

that the information will continue to be
Federal Register / Vol. 61, No. 107 / Monday, June 3, 1996 / Proposed Rules 27819

1On January 19, 1996, the Department published

a Federal Register notice seeking comment on the

issue of passenger notices as applied to ticketless

travel. See 61 FR 1309; also available on the World

Wide Web at http://www.dot.gov/dotinfo/general/

rules/aviation.html. The comment period for that

Notice ended March 19, 1996. After examining the

comments in that proceeding, the Department will

determine, among other things, whether ‘‘ticket’’ in

the context of currently required ticket notices

would include air transportation sold without a

conventional paper ticket and, consequently,

whether the existing rules require ticketless sales to

be accompanied by the passenger notices that are

currently required to be included on or with tickets.

available through other means. This

action is taken on the Department’s

initiative, as a result of the President’s

Regulatory Reinvention Initiative.

DATES: Comments on the issues

discussed in this document should be

received by July 18, 1996. Late-filed

comments will be considered to the

extent practicable.

ADDRESSES: Comments should be sent to

Docket Clerk, Docket No. OST–96–1255,

Room PL–401, Department of

Transportation, 400 Seventh Street SW,

Washington, DC 20590. For the

convenience of persons who will be

reviewing the docket, it is requested that

commenters provide an original and

three copies of their comments.

Comments can be inspected from 10:00

a.m. to 5:00 p.m. at the address listed for

mailing comments. Commenters who

wish the receipt of their comments to be

acknowledged should include a

stamped, self-addressed postcard with

their comments. The docket clerk will

date-stamp the postcard and mail it to

the commenter. Comments should be on

81⁄2 by 11 inch white paper using dark

ink and should be without tabs and

unbound.

An electronic version of this notice of

proposed rulemaking will be available

at http://www.dot.gov/dotinfo/general/

rules/aviation.html shortly after

publication in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Tim

Kelly, Aviation Consumer Protection

Division, Office of Aviation

Enforcement and Proceedings, Office of

the General Counsel, Department of

Transportation, 400 Seventh Street SW,

Room 4107, Washington, DC 20590,

telephone (202) 366–5952.

SUPPLEMENTARY INFORMATION: Airlines

overbook (accept more reservations than

there are seats on a flight) in order to

compensate for ‘‘no shows’’ (passengers

with confirmed reservations who do not

show up for their flight and do not

cancel their reservation). Overbooking

fills seats that would otherwise go

empty, thus keeping load factors up and

fares down. It also allows more

passengers to obtain reservations on the

flight of their choice.

The Department of Transportation

(Department or DOT) allows

overbooking but regulates it; see 14 CFR

Part 250. Section 250.11(a) of this

regulation requires U.S. and foreign air

carriers and travel agencies to display a

notice about overbooking at every desk

or position in the United States where

tickets are sold. (The original document

adopting this rule can be found at 42 FR

12422, March 4, 1977.) The notice must

be in boldface type at least one-fourth of

an inch high, and must read as follows:

Notice—Overbooking of Flights

Airline flights may be overbooked, and

there is a slight chance that a seat will not

be available on a flight for which a person

has a confirmed reservation. If the flight is

overbooked, no one will be denied a seat

until airline personnel first ask for volunteers

willing to give up their reservation in

exchange for a payment of the airline’s

choosing. If there are not enough volunteers

the airline will deny boarding to other

persons in accordance with its particular

boarding priority. With few exceptions

persons denied boarding involuntarily are

entitled to compensation. The complete rules

for the payment of compensation and each

airline’s boarding priorities are available at

all airport ticket counters and boarding

locations. Some airlines do not apply these

consumer protections to travel from some

foreign countries, although other consumer

protections may be available. Check with

your airline or your travel agent.

The oversale protections of Part 250

do not apply to inbound international

flights to the United States. Section

250.11(e) states that any U.S. or foreign

air carrier that chooses to fully comply

with Part 250 on inbound international

flights to the United States need not use

the last two sentences of the above

§ 250.11(a) notice.

In his Regulatory Reinvention

Initiative Memorandum of March 4,

1995, President Clinton directed Federal

agencies to conduct a page-by-page

review of all of their regulations and to

‘‘eliminate or revise those that are

outdated or otherwise in need of

reform.’’ In response to that directive,

the Department has undertaken a review

of its aviation economic and consumer

regulations as contained in 14 CFR

Chapter II. This rulemaking is one result

of those efforts. Other rulemakings will

address other regulations.

Section 250.11(b) requires that the

text of the oversales sign also appear on

a notice that must accompany every

ticket, and we plan to leave this ticket

notice requirement in place. The

Department has tentatively decided that

it is no longer necessary to require this

notice both on signs and in tickets, and

consequently we are proposing to

eliminate the requirement for the

oversales sign for carriers and travel

agencies that provide the ticket notice.

Most carriers that offer ‘‘ticketless’’

transportation send passengers a copy of

the consumer notices required by DOT

rules, including the § 250.11(b) notice.1

Where a carrier does not provide this

notice in writing to each customer,

however, the notice would have to

continue to appear on signs at locations

where that carrier sells tickets, e.g.

airports and city ticket offices.

We have decided to propose

elimination of the sign rather than the

ticket notice because the ticket notice is

normally provided earlier in the

process, and it is a record that the

passenger can retain. At airports, the

oversales sign is sometimes placed in

locations where it is difficult to read. In

addition, there have been occasional

objections from airports over the

placement of required signage.

Eliminating the requirement for the sign

should be particularly beneficial to the

more than 45,000 travel agencies in the

United States, many of whom are small

businesses.

This revision should not impair

consumer protection. Air travelers will

continue to receive the same

information via ticket notices. In

addition, § 250.9 requires carriers to

give a lengthier written handout to

anyone who is actually denied boarding,

and to anyone else who requests this

handout. (The ticket notice makes

reference to this handout.) Finally, the

substantive consumer protections of

Part 250 continue to apply even where

specific passengers might not receive

notice about those protections. In other

words, during an oversale situation,

carriers are under an affirmative

obligation to solicit volunteers and pay

compensation to all eligible passengers

who are denied boarding involuntarily,

not simply those who request these

services as a result of reading a notice.

As indicated above, the ticket notice

requirement in § 250.11(b) is being

retained. The text of the ticket notice is

not contained in current § 250.11(b);

instead, because the text of the ticket

notice and the sign is identical, current

§ 250.11(b) (the ticket notice provision)

incorporates the notice text by reference

to the text in § 250.11(a) (the sign

provision). Because § 250.11(a) is being

eliminated, we are proposing to move

the text of the ticket notice to

§ 250.11(b). We are also proposing to

change the word ‘‘notices’’ in the first

sentence of current § 250.11(b) to

‘‘notice’’; the singular form is more

accurate and is the form used in the

remainder of current § 250.11(b).

Finally, we are proposing to remove the

word ‘‘station’’ from the phrase ‘‘desk,
27820 Federal Register / Vol. 61, No. 107 / Monday, June 3, 1996 / Proposed Rules

station or position’’ in current

§ 250.11(a) (proposed § 250.11(b))

because it is confusing. This provision

refers to an individual staffed counter

position, whereas the airlines use

‘‘station’’ to refer to a carrier’s entire

operation at a particular city.

We are also taking this opportunity to

propose changes to certain outdated

language in Part 250. We are proposing

to change references to the Civil

Aeronautics Board, our predecessor in

aviation economic regulation, to the

Department of Transportation. Citations

to sections of the Federal Aviation Act

shall be changed to reflect the current

section numbers of these statutory

provisions in the United States Code, as

a result of a 1994 recodification which

absorbed that Act directly into the U.S.

Code and renumbered its sections. A

statutory change that occurred at the

time of this recodification incorporated

‘‘overseas air transportation’’ into

‘‘interstate air transportation’’ and

eliminated the former term, and we are

proposing to make corresponding

changes to the term ‘‘overseas air

transportation’’ wherever it occurs in

Part 250.

Regulatory Analyses and Notices

This NPRM is considered to be a nonsignificant rulemaking under DOT’s

regulatory policies and procedures, 44

FR 11034. The NPRM was not subject to

review by the Office of Information and

Regulatory Affairs pursuant to Executive

Order 12866.

The proposal would have minimal

economic impact, and accordingly no

regulatory evaluation has been

prepared. The principal impact will be

that several dozen air carriers and more

than 45,000 travel agencies, many of

whom are small businesses, will no

longer have to display this sign. The

economic impact is difficult to quantify.

There has been no continuing direct

cost associated with display of the signs,

and thus elimination of this requirement

will not produce an immediate

monetary savings. Some carriers may

choose not to incur the labor cost of

removing signs, particularly since the

information on the sign is still accurate.

The major economic benefit will result

from the fact that this sign will not have

to be erected at future airline and travel

agency locations. That will bring about

both material and labor savings.

The NPRM has been analyzed in

accordance with the principles and

criteria contained in Executive Order

12612, and it has been determined that

it does not have sufficient federalism

implications to warrant the preparation

of a Federalism Assessment.

While the proposal would benefit a

large number of small businesses, I

certify that the proposal, if adopted,

would not have a significant economic

impact on a substantial number of small

entities.

List of Subjects in 14 CFR Part 250

Air carriers, Consumer protection.

For the reasons set forth above, the

Department proposes to amend title 14,

chapter II, subchapter A, part 250 as

follows:

PART 250—[AMENDED]

1. The authority citation for part 250

would continue to read as follows:

Authority: 49 U.S.C. chapters 401, 411,

413, 417.

2. In § 250.1, revise the definition of

‘‘Carrier’’ to read as follows:

§ 250.1 Definitions.

* * * * *

Carrier means

(1) A direct air carrier, except a

helicopter operator, holding a certificate

issued by the Department of

Transportation pursuant to 49 U.S.C.

41102 (formerly sections 401(d)(1),

401(d)(2), 401(d)(5) and 401(d)(8) of the

Federal Aviation Act of 1958), or an

exemption from 49 U.S.C. 41101

(formerly section 401(a) of the Act),

authorizing the transportation of

persons, or

(2) A foreign route air carrier holding

a permit issued by the Department

pursuant to 49 U.S.C. 41301 through

41306 (formerly section 402 of the Act),

or an exemption from the appropriate

provision of 49 U.S.C. 41301 through

41306, authorizing the scheduled

foreign air transportation of persons.

§ 250.2 [Amended]

* * * * *

3. In § 250.2, remove the words ‘‘or

overseas.’’

§ 250.2 [Amended]

4. In § 250.2b(b), remove the word

‘‘Board’’ in the last sentence and add in

its place ‘‘DOT.’’

§ 250.4 [Amended]

5. In § 250.4(c), remove ‘‘the Board’’

and add in its place ‘‘DOT.’’

§ 250.5 [Amended]

6. In § 250.5(a), remove the words

‘‘and overseas’’ in the last sentence.

§ 250.9 [Amended]

7. In § 250.9(b), in the subsection

entitled Compensation for Denied

Boarding, remove the phrase ‘‘Civil

Aeronautics Board’’ and add in its place

‘‘Department of Transportation.’’

§ 250.9 [Amended]

8. In § 250.9(b), in the subsection

entitled Amount of Denied Boarding

Compensation, remove ‘‘the CAB’’ and

add in its place ‘‘DOT.’’

§ 250.11 [Amended]

9. Section 250.11(a) is removed and

reserved.

10. Paragraph (b) of § 250.11 is revised

to read as follows:

§ 250.11 Public disclosure of deliberate

overbooking and boarding procedures.

* * * * *

(b) Every carrier shall include with

each ticket sold in the United States the

following notice, printed in at least 12-

point type. The notice may be printed

on a separate piece of paper, on the

ticket stock, or on the ticket envelope.

The last two sentences of the notice

shall be printed in a typeface

contrasting with that of the rest of the

notice.

Notice—Overbooking of Flights

Airline flights may be overbooked, and

there is a slight chance that a seat will not

be available on a flight for which a person

has a confirmed reservation. If the flight is

overbooked, no one will be denied a seat

until airline personnel first ask for volunteers

willing to give up their reservation in

exchange for a payment of the airline’s

choosing. If there are not enough volunteers

the airline will deny boarding to other

persons in accordance with its particular

boarding priority. With few exceptions

persons denied boarding involuntarily are

entitled to compensation. The complete rules

for the payment of compensation and each

airline’s boarding priorities are available at

all airport ticket counters and boarding

locations. Some airlines do not apply these

consumer protections to travel from some

foreign countries, although other consumer

protections may be available. Check with

your airline or your travel agent.

A ‘‘ticketless’’ carrier that does not

provide a copy of this notice to

passengers in writing in conjunction

with air transportation purchased in the

United States must display this notice

continuously on a sign in a conspicuous

public place at each desk and position

in the United States staffed by its

employees or its contractor (not

including travel agencies) to sell

transportation to passengers. The notice

must be clearly visible and clearly

readable to the traveling public and

must be in boldface type at least onefourth of an inch high.

§ 250.11 [Amended]

11. In § 250.11(c), remove the phrase

‘‘paragraphs (a) and (b) of this section’’

and add in its place ‘‘paragraph (b) of

this section.’’
Federal Register / Vol. 61, No. 107 / Monday, June 3, 1996 / Proposed Rules 27821

§ 250.12 [Amended]

12. In § 250.11(e), remove ‘‘notices’’

and add in its place ‘‘notice’’ and

remove the phrase ‘‘paragraph (a) of this

subsection’’ and add in its place

‘‘paragraph (b) of this section.’’

Issued this 1st day of April, 1996 at

Washington, D.C.

Charles A. Hunnicutt,

Assistant Secretary for Aviation and

International Affairs.

[FR Doc. 96–13815 Filed 5–31–96; 8:45 am]

BILLING CODE 4910–62–P

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 1

RIN 1076–AD64

Applicability of the Rules of the Bureau

of Indian Affairs

AGENCY: Bureau of Indian Affairs,

Interior.

ACTION: Proposed rule.

SUMMARY: The Bureau of Indian Affairs

(BIA) is proposing to amend the

applicability of rules to make them more

readable and comprehensive by

rewriting them in plain English.

DATES: Comments must be received on

or before August 2, 1996.

ADDRESSES: Mail or hand carry

comments to James McDivitt, Acting

Director, Office of Management and

Administration, Bureau of Indian

Affairs, Department of the Interior, 1849

C St. NW, Mail Stop 4657–MIB,

Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT:

Dave Etheridge, Office of Secretary at

telephone (202) 208–4361.

SUPPLEMENTARY INFORMATION: We are

publishing this proposed rule by the

authority delegated by the Secretary of

the Interior to the Assistant Secretary—

Indian Affairs by 209 DM 8.

Public Participation Statement

Our policy is to give the public an

opportunity to participate in the

rulemaking process by submitting

written comments regarding the

proposed rules. We will consider all

comments received during the public

comment period. We will determine

necessary revisions and issue the final

rule. Please refer to this preamble’s

ADDRESSES section for where you must

submit your written comments on this

proposed rule.

Executive Order 12778

The Department has certified to the

Office of Management and Budget

(OMB) that these proposed regulations

meet the applicable standards provided

in sections 2(a) and 2(b)(2) of Executive

Order 12778.

Executive Order 12866

This proposed rule is not a significant

regulatory action under Executive Order

12866 and has not been reviewed by the

Office of Management and Budget.

Regulatory Flexibility Act

This proposed rule will not have a

significant economic impact on a

substantial number of small entities

under the Regulatory Flexibility Act (5

U.S.C. 601 et seq.). This proposed rule

will determine the funding levels to be

awarded to tribes for the purposes of

creating new or enhancing and

improving existing tribal court systems.

In the event a tribe elects to receive

funding, there are likely to be

improvements in the exercise of civil

jurisdiction by tribes. This improvement

may increase the rate of civil collections

by private economic enterprises

operating on or near Indian reservations.

In addition, there may be an increase in

the number of civil claims made against

private economic enterprises.

Executive Order 12630

The Department has determined that

this proposed rule does not have

significant ‘‘takings’’ implications. The

proposed rule does not pertain to

‘‘taking’’ of private property interests,

nor does it impact private property.

Executive Order 12612

The Department has determined that

this proposed rule does not have

significant federalism effects because it

pertains solely to Federal-tribal relations

and will not interfere with the roles,

rights and responsibilities of states.

NEPA Statement

The Department has determined that

this proposed rule does not constitute a

major Federal action significantly

affecting the quality of the human

environment and that no detailed

statement is required pursuant to the

National Environmental Policy Act.

Unfunded Mandates

This rule imposes no unfunded

mandates on any governmental or

private entity and is in compliance with

the provisions of the Unfunded

Mandates Act of 1995.

Paperwork Reduction Act of 1995

As required by the Paperwork

Reduction Act of 1995 (44 U.S.C.

3507(d)), the Department of the Interior

has submitted a copy of these sections

to the Office of Management and Budget

(OMB) for its review.

Drafting Information

The primary author of this document

was Kimberly Toyekoyah, Bureau of

Indian Affairs, Department of the

Interior.

List of Subjects in 25 CFR Part 1

Indians—land.

For the reasons given in the preamble,

Part 1 of Title 25, Chapter I of the Code

of Federal Regulations is proposed to be

revised as set forth below.

PART 1—APPLICABILITY OF RULES

OF THE BUREAU OF INDIAN AFFAIRS

Sec.

1.1 Waiver of regulations.

1.2 State and local regulation of the use of

Indian property.

Authority: 5 U.S.C. 301; RS 463 25 U.S.C.

2.

§ 1.1 Waiver of regulations.

The Secretary of the Interior may

waive or make exception to any

provision in Chapter I of Title 25 of the

Code of Federal Regulations if the

Secretary finds that it:

(a) Is in the best interest of the

Indians; and

(b) Would not violate any federal

statute or the United States

Constitution.

§ 1.2 State and local regulation of the use

of Indian property.

(a) Except as provided in paragraph

(b) of this section or in a federal statute,

no restriction based on the law of any

state or any subdivision of a state

applies to the use of any property

(including water rights) that is either:

(1) Held by the United States in trust

for an Indian or Indian tribe; or

(2) Owned by an Indian or Indian

tribe subject to a restriction against

alienation imposed by the United States.

(b) When the Secretary of the Interior

finds that it is in the best interest of the

Indian owner in achieving the highest

and best use of the property, the

Secretary may make a restriction based

on the law of a state or a subdivision of

a state applicable to specific property

that is:

(1) Held by the United States in trust

for an Indian or Indian tribe;

(2) Owned by an Indian or Indian

tribe subject to a restriction against

alienation imposed by the United States.