Federal Register / Vol. 61, No. 127 / Monday, July 1, 1996 / Rules and Regulations 33847

shall be submitted and shall be

identified with the docket number

found in brackets in the heading of this

document. Any objections received in

response to the regulation may be seen

in the Dockets Management Branch

between 9 a.m. and 4 p.m., Monday

through Friday.

List of Subjects in 21 CFR Part 178

Food additives, Food packaging.

Therefore, under the Federal Food,

Drug, and Cosmetic Act and under

authority delegated to the Commissioner

of Food and Drugs and redelegated to

the Director, Center for Food Safety and

Applied Nutrition, 21 CFR part 178 is

amended as follows:

PART 178—INDIRECT FOOD

ADDITIVES: ADJUVANTS,

PRODUCTION AIDS, AND SANITIZERS

1. The authority citation for 21 CFR

part 178 continues to read as follows:

Authority: Secs. 201, 402, 409, 721 of the

Federal Food, Drug, and Cosmetic Act (21

U.S.C. 321, 342, 348, 379e).

2. Section 178.3295 is amended in the

table by revising the entry for

‘‘Dimethyldibenzylidene sorbitol’’ to

read as follows:

§ 178.3295 Clarifying agents for polymers.

* * * * *

Substances Limitations

* * * * *

Dimethyldibenzylidene

sorbitol (CAS Reg.

No 135861–56–2).

For use only as a

clarifying agent at a

level not to exceed

0.4 percent by

weight of olefin

polymers complying

with § 177.1520(c)

of this chapter,

items 1.1, 3.1, and

3.2, where the copolymers complying

with items 3.1 and

3.2 contain not less

than 85 weight percent of polymer

units derived from

polypropylene. The

finished polymers

shall be used in

contact with food

under conditions of

use A through H

described in Table

2 of § 176.170(c) of

this chapter.

* * * * *

Dated: June 12, 1996.

Fred R. Shank,

Director, Center for Food Safety and Applied

Nutrition.

[FR Doc. 96–16662 Filed 6–28–96; 8:45 am]

BILLING CODE 4160–01–F

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

29 CFR Parts 2509, 2520 and 2550

RIN 1210–AA51

Removal of Interpretive Bulletins and

Regulations Relating to ERISA

AGENCY: Pension and Welfare Benefits

Administration, DOL.

ACTION: Final rule.

SUMMARY: This rule removes from the

Code of Federal Regulations certain

interpretive bulletins and regulations (or

portions thereof) under the Employee

Retirement Income Security Act of 1974

(ERISA), that the Department of Labor

(the Department) believes are obsolete

(collectively, the obsolete regulations).

The obsolete regulations generally

provided transitional relief for plan

sponsors, plan administrators, and

others subject to the requirements of

title I of ERISA, in coming into

compliance with ERISA’s requirements

in the first several years following

ERISA’s enactment in 1974. Because the

election periods or dates of applicability

under these rules have expired, the

Department believes that the regulations

are no longer needed. In other instances,

the obsolete regulations are unnecessary

because they merely provide notice of a

rescission or withdrawal of prior

guidance or regulations, or were

rendered ineffective by a subsequent

Supreme Court decision.

EFFECTIVE DATE: July 1, 1996.

FOR FURTHER INFORMATION CONTACT:

Katherine D. Lewis, Office of

Regulations and Interpretations, Pension

and Welfare Benefits Administration,

U.S. Department of Labor, Rm. N–5669,

200 Constitution Avenue, N.W.,

Washington, D.C. 20210 (telephone

(202) 219–7461), or Vicki Shteir-Dunn,

Plan Benefits Security Division, Office

of the Solicitor, U.S. Department of

Labor, Rm. N–4611, 200 Constitution

Ave., N.W., Washington, D.C. 20210

telephone (202) 219–8610).

SUPPLEMENTARY INFORMATION: In

accordance with the President’s

Executive Order No. 12866 of

September 1993, ‘‘Regulatory Planning

and Review,’’ and the President’s

directive of March 4, 1995, ‘‘Regulatory

Reinvention Initiative,’’ the Department

has undertaken to identify and

eliminate regulations which are no

longer needed. Pursuant to a review of

regulations under the Employee

Retirement Income Security Act of 1974

(ERISA), the Department identified 28

interpretive bulletins and regulations (or

portions thereof) which it believes to be

obsolete. Nearly all of these interpretive

bulletins and regulations were issued

over fifteen years ago. This rule removes

these interpretive bulletins, regulations

and paragraphs of regulations from the

Code of Federal Regulations, and makes

conforming amendments where

necessary to accommodate the removal

of identified provisions. In order to

ensure that members of the public had

the opportunity to comment, the

Department initially published this rule

in the Federal Register (61 FR 14690,

April 3, 1996) as a notice of proposed

rulemaking. The Department received

one public comment, which was fully

supportive of the proposal.

The rule removes the obsolete

regulations prospectively, as of the date

of publication of this final rule, and has

no effect on their legal effectiveness

prior to that date. Following is a brief

description of each of the obsolete

interpretive bulletins and regulations (or

portions thereof) removed by the

Department. All of these items were in

title 29 of the Code of Federal

Regulations.

I. Part 2509—Interpretive Bulletins

Relating to the Employee Retirement

Income Security Act of 1974

This rule removes interpretive

bulletins 75–1, 75–7, 76–2 and 76–3

from subchapter A, part 2509 of the

Code of Federal Regulations (29 CFR

§§ 2509.75–1, 2509.75–7, 2509.76–2 and

2509.76–3). In addition, the rule

removes paragraph (b) of interpretive

bulletin 75–2 (29 CFR 2509.75–2).

Interpretive bulletin 75–1 outlined

and clarified section 414(c)(4) of ERISA,

which provided that sections 406 and

407(a) of ERISA (relating to prohibited

transactions) are not applicable to the

provision of certain services between a

plan and a party in interest before June

30, 1977, if certain conditions described

in that section are met. Interpretive

bulletin 75–7 supplemented interpretive

bulletin 75–1 and provided examples of

its application. Interpretive bulletins

76–2 and 76–3 merely gave notice of the

rescission or withdrawal of earlier

guidance relating to the definition of

‘‘seasonal industries,’’ a matter now

under the jurisdiction of the Internal

Revenue Service pursuant to

Reorganization Plan No. 4 of 1978.

Paragraph (b) of interpretive bulletin

75–2 took the position that

consideration paid for a contract or

policy of insurance issued to a plan

would not be considered plan assets if

placed in the general account of the

issuing insurance company, and

therefore could not give rise to
33848 Federal Register / Vol. 61, No. 127 / Monday, July 1, 1996 / Rules and Regulations

prohibited transactions. This

interpretation may no longer be relied

on as a result of the December 13, 1993

Supreme Court decision in John

Hancock Mutual Life Insurance Co. v.

Harris Trust & Savings Bank, 114 S. Ct.

517 (1993), and therefore, has no force

or effect.

II. Part 2520—Rules and Regulations

for Reporting and Disclosure

The rule removes ten regulations and

provisions of two other regulations from

subchapter C, part 2520 of the Code of

Federal Regulations (29 CFR Part 2520),

pertaining to reporting and disclosure

under ERISA.

From subpart C of Part 2520, the rule

removes § 103–6(b)(1)(ii), which defined

the current value of plan assets for

purposes of schedules of reportable

transactions for plan years beginning in

1975. The remainder of § 103–6(b)(1) is

revised to eliminate the reference to

§ 103–6(b)(1)(ii), and to otherwise

conform to this change. The rule also

removes § 103–7. This regulation, which

provided special accounting rules for

plans filing the annual report for plan

years beginning in 1975, applied only

with respect to plan years beginning in

1975 and not to any subsequent plan

years.

The rule removes the following seven

regulations from subpart D of part 2520.

The Department’s regulation at § 104–2

postponed the effective date of annual

reporting requirements for non-calendar

year plans and extended the reporting

requirements under prior legislation for

such plans until the end of the first plan

year beginning after January 1, 1975.

The Department’s regulation at § 104–3

deferred certain reporting and

disclosure requirements for welfare

plans, and provided an alternative

method of compliance for pension

plans, until May 30, 1976. The

Department’s regulation at § 104–5

deferred, until no later than November

16, 1977, the application of certain

reporting and disclosure requirements

relating to the summary plan

description for welfare plans. The

Department’s regulation at § 104–6

provided an alternative method of

compliance for pension plans which

elected to defer the summary plan

description reporting and disclosure

requirements. The availability of the

deferral expired on November 16, 1977.

The Department’s regulation at § 104–28

provided an extension of time for filing

and disclosure of the initial summary

plan description for certain employee

benefit plans that became subject to part

1 of title I of ERISA on or before July

17, 1977. The Department’s regulation at

§ 104–45 provided a temporary

exemption and alternative method of

compliance with respect to the

requirement to report insurance fees and

commissions for insured plans with

fewer than 100 participants. The

regulation applied only to annual

reports required to be filed for the plan

years beginning in 1975 and 1976.

From subpart F of part 2520, the rule

removes and reserves certain paragraphs

of § 104b–2 and § 104b–4, and removes

§§ 104b–5 and 104b–12.

With respect to § 104b–2, the rule

revises paragraphs (b)(1) and (b)(2), and

removes and reserves paragraphs (c),

(d), (e), (f) and (h). Paragraphs (b)(1) and

(b)(2) establish the periods within

which updated summary plan

descriptions must be furnished to

participants and beneficiaries receiving

benefits under the plan (which differ

depending on whether there have been

amendments to the plan). In both cases,

the periods for providing an updated

summary plan description are no later

than 210 days after the end of the plan

year within which occurs the later of a

date certain (November 16, 1983 or

November 16, 1987) or a period of years

after the last date a change in the

information required to be disclosed by

section 102 of ERISA or § 102–3 would

have been reflected in the most recently

distributed summary plan description.

The rule revises paragraphs (b)(1) and

(b)(2) to eliminate the references to the

dates certain.

Paragraph (c) of § 104b–2 pertained to

plans making elections under

§§ 2520.104–5 and 2520.104–6, for

which the election periods expired in

1977. Paragraph (d) of the regulation

provided an alternative method of

compliance for plans using a Form EBS–

1 with a print date of April 1975 as the

summary plan description. The Form

EBS–1 was eliminated in 1976.

Paragraph (e) of the regulation provided

an alternative method of compliance

with ERISA’s summary plan description

requirements for plans which filed and

disclosed an initial summary plan

description on or before May 30, 1976,

in reliance upon earlier guidance of the

Department. The availability of the

alternative method of compliance was

conditioned on the disclosure by such

plans, prior to November 16, 1977, of a

statement of ERISA rights which

complied with § 2520.102–3(t).

Paragraph (f) of the regulation provided

an alternative method of compliance for

plans which were not described in

paragraphs (d) or (e) and which met

certain requirements. The alternative

method of compliance under paragraph

(f) expired on November 16, 1977.

Paragraph (h) of the regulation merely

referred to §§ 2520.104–5 and 2520.104–

6, both of which authorized alternative

methods of compliance which expired

on November 16, 1977.

With respect to § 104b–4, the rule

removes paragraph (d). This paragraph

required certain plans to furnish

information to certain classes of

participants or beneficiaries by

November 16, 1977.

The rule also removes § 104b–5 and

§ 104b–12. The Department’s regulation

at § 104b–5 created a new disclosure

document, the ‘‘ERISA Notice’’, for use

as an interim disclosure document by

welfare and pension benefit plans

electing to use the deferral until

November 16, 1977 provided under

§§ 2520.104–5 and 2520.104–6. The

Department’s regulation at § 104b–12

provided multiemployer plans lacking

records of covered participants with

optional methods of distributing the

first summary annual report to

participants covered under the plan.

The regulation generally applied to

reports distributed before February 15,

1977.

III. Part 2550—Rules and Regulations

for Fiduciary Responsibility

The rule removes eight regulations

from subchapter F, part 2550 of title 29

of the Code of Federal Regulations,

pertaining to fiduciary responsibility

under ERISA. These include §§ 407a–3,

407a–4, 407c–3, 414b–1, 414c–1, 414c–

2, 414c–3 and 414c–4, all of which

provided transitional relief for the first

several years following ERISA’s

enactment.

The Department’s regulation at

§ 407a–3 provided plan administrators

with prospective guidance clarifying the

meaning of section 407(a)(3)(B) of

ERISA. This guidance assisted plan

administrators in determining whether

their plans held qualifying employer

securities and/or qualifying employer

real property the fair market value of

which, on any date between January 1,

1975 and December 31, 1984, did not

exceed ten percent of the fair market

value of the plan’s assets, and thus

would not be subject to the ten percent

holding limitation contained in section

407(a)(3)(A) of ERISA. The period for

which plan administrators needed such

prospective guidance was from January

1, 1975 until December 31, 1984.

Accordingly, the need for such guidance

no longer exists.

The Department’s regulation at

§ 407a–4 clarified the requirements of

section 407(a)(4) of ERISA, which

required that plans divest, by December

31, 1979, 50 percent of the qualifying

employer securities and qualifying real

property which they would be required

to divest before January 1, 1985, under
Federal Register / Vol. 61, No. 127 / Monday, July 1, 1996 / Rules and Regulations 33849

section 407(a)(3) or 407(c) of ERISA.

Accordingly, the transactions addressed

by the regulation were transactions that

were required to occur on or before

December 31, 1979.

The Department’s regulation at

§ 407c–3 described an election plans

could make, prior to January 1, 1976, to

utilize an alternate method of

calculating the value of employer

securities for purposes of satisfying the

limitations of section 407(a)(3) of ERISA

on the holding of such securities or real

property. The regulation also provided

that after making such an election, and

before January 1, 1985, the plan could

not acquire any real property.

The Department’s regulation at

§ 414b–1 provided guidance to plans

applying to the Department of Labor, in

accordance with section 414(b)(1) of

ERISA, for postponement, until no later

than January 1, 1976, of the effective

date of certain provisions of ERISA.

Applications for such postponement

generally had to be submitted to the

Department on or before December 31,

1974.

The Department’s regulations at

§§ 414c–1, 414c–2, and 414c–3 provided

guidance concerning transitional rules

relating to certain types of transactions

prior to June 30, 1984, after which the

rules became inapplicable. Specifically,

§ 414c–1 related to certain loans or other

extensions of credit prior to June 30,

1984; § 414c–2 related to certain leases

or joint uses of property prior to June

30, 1984; and § 414c–3 related to certain

sales, exchanges, or other dispositions

of property prior to June 30, 1984. The

Department’s regulation at § 414c–4

provided guidance regarding a

transitional rule relating to the

provision of certain services until June

30, 1977, after which the rule became

inapplicable.

Executive Order 12866

The Department has determined that

this regulatory action is not a

‘‘significant rule’’ within the meaning of

Executive Order 12866 concerning

Federal regulations, because it is not

likely to result in: (1) An annual effect

on the economy of $100 million or

more, or an adverse and material effect

on a sector of the economy,

productivity, competition, jobs, the

environment, public health or safety, or

State, local or tribal governments or

communities; (2) the creation of a

serious inconsistency or interference

with an action taken or planned by

another agency; (3) a material alteration

in the budgetary impacts of entitlement,

grants, user fees, or loan programs or the

rights and obligations of recipients

thereof; or (4) the raising of novel legal

or policy issues arising out of legal

mandates, the President’s priorities, or

the principles set forth in Executive

Order 12866.

Regulatory Flexibility Act

The Regulatory Flexibility Act, 5

U.S.C. 601 et. seq., requires each Federal

agency to perform a Regulatory

Flexibility Analysis for all rules that are

likely to have a significant economic

impact on a substantial number of small

entities. Small entities include small

businesses, organizations, and

governmental jurisdictions; under

ERISA, a ‘‘small plan’’ is one with less

than 100 participants. ERISA section

104(a)(2), 29 U.S.C. 1024(a)(2).

The Assistant Secretary of the Pension

and Welfare Benefits Administration

certifies that the modifications set forth

in this rule will not have a significant

economic impact on a substantial

number of small entities. The reasons

for this certification are as follows:

(1) The rule merely removes obsolete

or unnecessary interpretive bulletins

and regulations (or portions thereof)

from the Code of Federal Regulations,

and, where appropriate, makes

conforming amendments to

accommodate such removal; and

(2) The rule does not impose any new

requirements on any entity.

Paperwork Reduction Act

This rule is not subject to the

requirements of the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.) because it contains no

‘‘collection of information’’ as defined

in 44 U.S.C. 3502(3).

List of Subjects

29 CFR Part 2509

Employee benefit plans, Pensions.

29 CFR Part 2520

Employee benefit plans, Pensions,

Reporting and recordkeeping

requirements.

29 CFR Part 2550

Employee benefit plans, Pensions,

Prohibited transactions.

Authority

For the reasons described in the

preamble, parts 2509, 2520, and 2550 of

chapter XXV of title 29 of the Code of

Federal Regulations, are amended as set

forth below:

PART 2509—INTERPRETIVE

BULLETINS RELATING TO THE

EMPLOYEE RETIREMENT INCOME

SECURITY ACT OF 1974

1. The authority citation for part 2509

is revised to read as follows:

Authority: 29 U.S.C. 1135. Sections

2509.75–10 and 2509.75–2 issued under 29

U.S.C. 1052, 1053, 1054. Secretary of Labor’s

Order No. 1–87 (52 FR 13139).

§ 2509.75–1 [Removed]

2. Section 2509.75–1 is removed.

§ 2509.75–2 [Amended]

3. Section 2509.75–2 is amended by

removing and reserving paragraph (b).

§§ 2509.75–7, 2509.76–2, 2509.76–3

[Removed]

4. Sections 2509.75–7, 2509.76–2 and

2509.76–3 are removed.

PART 2520—RULES AND

REGULATIONS FOR REPORTING AND

DISCLOSURE

5. The authority citation for part 2520

continues to read as follows:

Authority: Secs. 101, 102, 103, 104, 105,

109, 110, 111(b)(2), 111(c), and 505, Pub. L.

93–406, 88 Stat. 840–52 and 894 (29 U.S.C.

1021–25, 1029–31, and 1135); Secretary of

Labor’s Order No. 27–74, 13–76, 1–87, and

Labor Management Services Administration

Order No. 2–6.

Subpart C—[Amended]

6. Section 2520.103–6 is amended by

revising paragraph (b)(1) to read as

follows:

§ 2520.103–6 Definition of reportable

transaction for Annual Return/Report.

* * * * *

(b) Definitions. (1) Except as provided

in paragraphs (c)(2) and (d)(1)(vi) of this

section (relating to assets acquired or

disposed of during the plan year),

‘‘current value’’ shall mean the current

value, as defined in section 3(26) of the

Act, of plan assets as of the beginning

of the plan year, or the end of the

previous plan year.

* * * * *

§ 2520.103–7 [Removed]

7. Section 2520.103–7 is removed.

Subpart D—[Amended]

§§ 2520.104–2, 2520.104–3, 2520.104–5,

2520.104–6, 2520.104–28, 2520.104–45

[Removed and Reserved]

8. Sections 2520.104–2, 2520.104–3,

2520.104–5, 2520.104–6, 2520.104–28,

and 2520.104–45 are removed and

reserved.

Subpart F—[Amended]

9. Section 2520.104b–2 is amended by

revising paragraph (b) to read as follows:

§ 2520.104b–2 Summary plan description.

* * * * *

(b) Periods for furnishing updated

summary plan description. (1) For
33850 Federal Register / Vol. 61, No. 127 / Monday, July 1, 1996 / Rules and Regulations

purposes of the requirement to furnish

the updated summary plan description

to each participant and each beneficiary

receiving benefits under the plan (other

than beneficiaries receiving benefits

under a welfare plan) required by

section 104(b)(1) of the Act, the

administrator of an employee benefit

plan shall furnish such updated

summary plan description no later than

210 days following the end of the plan

year which occurs five years after the

last date a change in the information

required to be disclosed by section 102

or 29 CFR 2520.102–3 would have been

reflected in the most recently

distributed summary plan description

(or updated summary plan description)

as described in section 102 of the Act.

(2) In the case of a plan to which no

amendments have been made between

the end of the time period covered by

the last distributed summary plan

description (or updated summary plan

description), described in section 102 of

the Act, and the next occurring

applicable date described in paragraph

(b)(1) of this section, for purposes of the

requirement to furnish the updated

summary plan description to each

participant, and to each beneficiary

receiving benefits under the plan (other

than beneficiaries receiving benefits

under a welfare plan), required by

section 104(b)(1) of the Act, the

administrator of an employee benefit

plan shall furnish such updated

summary plan description no later than

210 days following the end of the plan

year which occurs ten years after the

last date a change in the information

required to be disclosed by section 102

or 29 CFR 2520.102–3 would have been

reflected in the most recently

distributed summary plan description

(or updated summary plan description),

as described in section 102 of the Act.

* * * * *

§ 2520.104b–2 [Amended]

10. Paragraphs (c), (d), (e), (f) and (h)

of § 2520.104b–2 are removed and

reserved.

§ 2520.104b–4 [Amended]

11. Paragraph (d) of § 2520.104b–4 is

removed.

§§ 2520.104b–5—2520.104b–12 [Removed]

12. Sections 2520.104b–5 and

2520.104b–12 are removed.

PART 2550—RULES AND

REGULATIONS FOR FIDUCIARY

RESPONSIBILITY

13. The authority citation for part

2550 is revised to read as follows:

Authority: 29 U.S.C. 1135. Section

2550.401b–1 also issued under sec. 102,

Reorganization Plan No. 4 of 1978 (43 FR

47713, Oct. 17, 1978), effective December 31,

1978 (44 FR 1065, Jan. 3, 1979), 3 CFR, 1978

Comp., p. 332. Section 2550.404c–1 also

issued under 29 U.S.C. 1104. Section

2550.407c–3 also issued under 29 U.S.C.

1107. Section 2550.408b–1 also issued under

sec. 102, Reorganization Plan No. 4 of 1978

(43 FR 47713, Oct. 17, 1978), effective

December 31, 1978 (44 FR 1065, Jan. 3, 1979),

3 CFR, 1978 Comp., p. 332, and 29 U.S.C.

1108(b)(1). Section 2550.412–1 also issued

under 29 U.S.C. 1112. Secretary of Labor’s

Order No. 1–87 (52 FR 13139).

§§ 2550.407a–3, 2550.407a–4, 2550.407c–3,

2550.414b–1, 2550.414c–1, 2550.414c–2,

2550.414c–3, 2550.414c–4 [Removed]

14. Sections 2550.407a–3, 2550.407a–

4, 2550.407c–3, 2550.414b–1,

2550.414c–1, 2550.414c–2, 2550.414c–

3, 2550.414c–4 are removed.

Signed at Washington, D.C., this 25th day

of June, 1996.

Olena Berg,

Assistant Secretary for Pension and Welfare

Benefits, U.S. Department of Labor.

[FR Doc. 96–16594 Filed 6–28–96; 8:45 am]

BILLING CODE 4510–29–P

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 1

RIN 2900–AI32

Reestablishing Rulemaking

Procedures; Public Participation in

Regulatory Development

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: In a document published in

the Federal Register on March 20, 1996

(61 FR 11309), the Department of

Veterans Affairs (VA) amended 38 CFR

Part 1 by promulgating a final rule that

included the elimination of § 1.12. The

provisions of § 1.12 set forth a policy

statement concerning prior notice-andcomment for rulemaking. Judicial

review of VA’s action eliminating § 1.12

has been sought on the basis that such

action did not comply with notice-andcomment provisions. While we believe

such a position is not legally correct, we

are by this document reestablishing

§ 1.12, and, in a companion document

published in the Proposed Rules section

of this issue of the Federal Register,

proposing to eliminate § 1.12. This will

provide interested parties an

opportunity to provide comments

concerning this matter, thus mooting the

pending litigation.

EFFECTIVE DATE: July 1, 1996.

FOR FURTHER INFORMATION CONTACT:

Thomas O. Gessel, Director, Office of

Regulations Management (02D), Office

of General Counsel, Department of

Veterans Affairs, 810 Vermont Avenue,

NW, Washington, DC 20420, (202) 273–

8605.

SUPPLEMENTARY INFORMATION: This final

rule merely concerns VA policy.

Accordingly, in accordance with the

provisions of 5 U.S.C. 553, it is

promulgated without notice-andcomment and without a delayed

effective date.

No notice of proposed rulemaking

was required in connection with this

rulemaking action. Accordingly, no

regulatory flexibility analysis is required

under the Regulatory Flexibility Act (5

U.S.C. 601–612). Nevertheless, the

Secretary of Veterans Affairs certifies

that this rule would not have a

significant economic impact on a

substantial number of small entities as

they are defined in the Regulatory

Flexibility Act. This rule will not have

a direct effect on small entities.

There is no Catalog of Federal

Domestic Assistance program number.

List of Subjects in 38 CFR Part 1

Administrative practice and

procedure, Archives and records,

Cemeteries, Claims, Courts, Flags,

Freedom of information, Government

contracts, Government employees,

Government property, Infants and

children, Inventions and patents,

Investigations, Parking, Penalties, Postal

Service, Privacy, Reporting and

recordkeeping requirements, Seals and

insignia, Security measures, Wages.

Approved: June 21, 1996.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set out in the

preamble, 38 CFR part 1 is amended as

set forth below:

PART 1—GENERAL PROVISIONS

1. The authority citation for part 1

continues to read as follows:

Authority: 38 U.S.C. 501(a), unless

otherwise noted.

2. An undesignated center heading

and section 1.12 are added to read as

follows:

Public Participation

§ 1.12 Public participation in regulatory

development.

It is the policy of the Department of

Veterans Affairs to afford the public

general notice, published in the Federal

Register, of proposed regulatory

development, and an opportunity to

participate in the regulatory

development in accordance with the

provisions of the Administrative