Federal Register / Vol. 75, No. 182 / Tuesday, September 21, 2010 / Rules and Regulations 57385 

3Section 923(b) of the Dodd-Frank Act. 

4See 5 U.S.C. 553(b). 

5 5 U.S.C. 553(b). 

6Similarly, the amendments do not require 

analysis under the Regulatory Flexibility Act. See 

5 U.S.C. 601(2) and 603(a) (for purposes of 

Regulatory Flexibility Act analysis, the term ‘‘rule’’ 

means any rule for which the agency publishes a 

general notice of proposed rulemaking). 

7Additionally, this finding satisfies the 

requirements for immediate effectiveness under the 

Small Business Regulatory Enforcement Fairness 

Act. See 5 U.S.C. 808(2); see also 5 U.S.C. 801(a)(4). 

1 17 CFR 210.2–02. 

2 17 CFR part 210. 

3 17 CFR 229.308. 

4 17 CFR part 229. 

5 17 CFR 249.220f. 

6 17 CFR 249.240f. 

7 15 U.S.C. 7201 et seq. 

8Public Law 111–203 (July 21, 2010). 

9 17 CFR 240.12b–2. 

10 15 U.S.C. 78a et seq. 

11Although the term ‘‘non-accelerated filer’’ is not 

defined in Commission rules, we use it throughout 

this release to refer to a reporting company that 

does not meet the definition of either an 

‘‘accelerated filer’’ or a ‘‘large accelerated filer’’ 

under Exchange Act Rule 12b–2. Under Exchange 

Act Rule 12b–2, an accelerated filer is an issuer that 

‘‘had an aggregate worldwide market value of the 

voting and non-voting common equity held by its 

Continued 

with ‘‘original information’’ about a 

violation of the Federal securities laws 

that leads to the successful enforcement 

of a ‘‘covered judicial or administrative 

action,’’ or a ‘‘related action,’’ as those 

terms are defined by the Dodd-Frank 

Act. Unlike the insider trading bounty 

program, awards may be paid in 

connection with original information 

concerning any violation of the Federal 

securities laws. Awards may range from 

10 to 30 percent of the amounts 

collected as monetary sanctions 

imposed in the covered judicial or 

administrative action or related actions. 

In connection with enactment of the 

new whistleblower provision, Congress 

repealed Section 21A(e).3 Because that 

statutory provision is no longer 

available as a basis for awarding 

bounties in insider trading cases, the 

Commission is rescinding its rules for 

administration of the insider trading 

bounty program. 

Procedural and Other Matters 

The Administrative Procedure Act 

(‘‘APA’’) generally requires an agency to 

publish notice of a proposed rulemaking 

in the Federal Register.4 This 

requirement does not apply, however, if 

the agency ‘‘for good cause’’ finds * * * 

that notice and public procedure 

thereon are impracticable, unnecessary, 

or contrary to the public interest.’’ 5

Because the statutory authority for the 

insider trading bounty program has been 

repealed, the Commission is removing 

the rules administering the program 

from the Federal Register. These rules 

no longer have any practical effect, and 

their continued inclusion in the Federal 

Register might lead to public confusion. 

For these reasons, the Commission finds 

that good cause exists to dispense with 

public notice and comment because 

notice and comment would be 

unnecessary, impracticable and contrary 

to the public interest.6 For similar 

reasons the Commission finds good 

cause for this action to be effective 

immediately.7

Section 23(a)(2) of the Exchange Act 

requires the Commission to consider the 

competitive effects of rulemaking under 

the Exchange Act. Further, Section 3(f) 

of the Exchange Act requires us, when 

engaging in rulemaking where we are 

required to consider or determine 

whether an action is necessary or 

appropriate in the public interest, to 

consider, in addition to the protection of 

investors, whether the action will 

promote efficiency, competition, and 

capital formation. Because Congress has 

repealed the insider trading bounty 

program, our removal of the procedural 

rules related to that program will not 

create any competitive advantages or 

disadvantages, or affect efficiency, 

competition, and capital formation. 

Statutory Authority and Text of 

Amendments 

The Commission is removing 

regulations pursuant to authority 

provided by Section 23(a) of the 

Exchange Act. 

List of Subjects in 17 CFR Part 201 

Administrative practice and 

procedure. 

Text of Amendments 

■ For the reasons set out in the 

preamble, Title 17, Chapter II of the 

Code of Federal Regulations is amended 

as follows: 

PART 201—RULES OF PRACTICE 

■ 1. The authority citation for part 201 

continues to read as follows: 

Authority: 15 U.S.C. 77s, 77sss, 78w, 78x, 

80a–37, and 80b–11; 5 U.S.C. 504(c)(1). 

Subpart C—[Removed and Reserved] 

■ 2. Remove and reserve Subpart C. 

Dated: September 15, 2010. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–23457 Filed 9–20–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Parts 210, 229, and 249 

[Release Nos. 33–9142; 34–62914] 

Internal Control Over Financial 

Reporting in Exchange Act Periodic 

Reports of Non-Accelerated Filers 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’) is adopting 

amendments to its rules and forms to 

conform them to Section 404(c) of the 

Sarbanes-Oxley Act of 2002 (the 

‘‘Sarbanes-Oxley Act’’), as added by 

Section 989G of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (the ‘‘Dodd-Frank Act’’). Section 

404(c) provides that Section 404(b) of 

the Sarbanes-Oxley Act shall not apply 

with respect to any audit report 

prepared for an issuer that is neither an 

accelerated filer nor a large accelerated 

filer as defined in Rule 12b–2 under the 

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’). 

DATES: Effective Date: September 21, 

2010. 

FOR FURTHER INFORMATION CONTACT: 

Steven G. Hearne, Special Counsel, 

Office of Rulemaking, Division of 

Corporation Finance, at (202) 551–3430, 

Steven Jacobs, Associate Chief 

Accountant, Division of Corporation 

Finance, at (202) 551–3400, or John 

Offenbacher, Senior Associate Chief 

Accountant, or Annemarie Ettinger, 

Senior Special Counsel, Office of the 

Chief Accountant, at (202) 551–5300, 

U.S. Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549. 

SUPPLEMENTARY INFORMATION: We are 

adopting conforming amendments to 

Rule 2–021 of Regulation S–X,2 Item 

308 3 of Regulation S–K,4 Item 15 of 

Form 20–F,5 and General Instruction 

B.(6) of Form 40–F.6

I. Description of Amendments 

The Commission is adopting 

amendments to its rules and forms to 

conform them to new Section 404(c) of 

the Sarbanes-Oxley Act,7 as added by 

Section 989G of the Dodd-Frank Act.8

Section 404(c) provides that Section 

404(b) of the Sarbanes-Oxley Act shall 

not apply with respect to any audit 

report prepared for an issuer that is 

neither an accelerated filer nor a large 

accelerated filer as defined in Rule 12b– 

29 under the Exchange Act.10 Prior to 

enactment of the Dodd-Frank Act, a 

non-accelerated filer 11 would have been 


hsrobinson on DSK69SOYB1PROD with RULES
57386 Federal Register / Vol. 75, No. 182 / Tuesday, September 21, 2010 / Rules and Regulations 

non-affiliates of $75 million or more, but less than 

$700 million, as of the last business day of the 

issuer’s most recently completed second fiscal 

quarter’’ and a large accelerated filer is an issuer 

that ‘‘had an aggregate worldwide market value of 

the voting and non-voting common equity held by 

its non-affiliates of $700 million or more, as of the 

last business day of the issuer’s most recently 

completed second fiscal quarter’’. In addition, for 

both definitions, the issuer needs to have been 

subject to reporting requirements for at least twelve 

calendar months, have filed at least one annual 

report, and not be eligible to use the requirements 

for smaller reporting companies for its annual and 

quarterly reports. 

12See Release No. 33–9072 (Oct. 13, 2009) [74 FR 

53628]. Consistent with Sections 404(a) and 404(b) 

of the Sarbanes-Oxley Act, on June 5, 2003, the 

Commission adopted initial amendments to its 

rules and forms requiring companies, other than 

registered investment companies, to include in their 

annual reports filed with the Commission a report 

of management and an accompanying auditor’s 

attestation report on the effectiveness of the 

company’s internal control over financial reporting. 

See Release No. 33–8238 (June 5, 2003) [68 FR 

36636]. Subsequent to the adoption of those rules, 

the Commission postponed the Section 404(b) 

auditor attestation requirement for non-accelerated 

filers, such that the auditor’s attestation report for 

these filers would have first been required for 

annual reports filed with the Commission for fiscal 

years ending on or after June 15, 2010. The 

amendments in this Release will not affect the 

transition rules applicable for non-accelerated filers 

with fiscal years ending prior to June 15, 2010. 

13An issuer that is an accelerated filer or a large 

accelerated filer continues to be subject to the 

requirements of Section 404(b) of the SarbanesOxley Act. 

14See new Item 308(a)(4) of Regulation S–K. 

15See 17 CFR 229.308(a). For further guidance on 

management’s report, see Commission Guidance 

Regarding Management’s Report on Internal Control 

Over Financial Reporting Under Section 13(a) or 

15(d) of the Securities Exchange Act of 1934, 

Release No. 33–8810 (June 20, 2007) [72 FR 35324]. 

All such reports for non-accelerated filers for fiscal 

years ending on or after June 15, 2010 will be 

considered ‘‘filed’’ under the Exchange Act. 

Although there are many different ways to conduct 

an evaluation of the effectiveness of internal control 

over financial reporting, an evaluation that is 

conducted in accordance with this interpretive 

guidance is one way to satisfy the requirements for 

the evaluation. 

16 5 U.S.C. 553(b). 

17This finding also satisfies the requirements of 

5 U.S.C. 808(2), allowing the rule amendment to 

become effective notwithstanding the requirement 

of 5 U.S.C. 801 (if a Federal agency finds that notice 

and public comment are ‘‘impractical, unnecessary 

or contrary to the public interest,’’ a rule ‘‘shall take 

effect at such time as the federal agency 

promulgating the rule determines’’). For similar 

reasons, the amendments do not require analysis 

under the Regulatory Flexibility Act. See 5 U.S.C. 

601(2) (for purposes of Regulatory Flexibility Act 

analysis, the term ‘‘rule’’ means ‘‘any rule for which 

the agency publishes a general notice of proposed 

rulemaking’’). 

18See 5 U.S.C. 553(d)(3). 

19 15 U.S.C. 78w(a)(2). 

20 15 U.S.C. 78c(f). 

21 44 U.S.C. 3501 et seq. 

22We are issuing a separate notice regarding the 

impact of this change on paperwork burdens. 

required, under existing Commission 

rules, to include an attestation report of 

its registered public accounting firm on 

internal control over financial reporting 

in the filer’s annual report filed with the 

Commission for fiscal years ending on 

or after June 15, 2010.12

To conform the Commission’s rules to 

Section 404(c) of the Sarbanes-Oxley 

Act, these amendments remove the 

requirement for a non-accelerated filer 

to include in its annual report an 

attestation report of the filer’s registered 

public accounting firm.13 We are also 

adopting a conforming change to our 

rules concerning management’s 

disclosure in the annual report 

regarding inclusion of an attestation 

report to provide that the disclosure 

only applies if an attestation report is 

included.14 Lastly, we are making a 

conforming change to Rule 2–02(f) of 

Regulation S–X to clarify that an auditor 

of a non-accelerated filer need not 

include in its audit report an assessment 

of the issuer’s internal control over 

financial reporting. 

All issuers, including non-accelerated 

filers, continue to be subject to the 

requirements of Section 404(a) of the 

Sarbanes-Oxley Act. Section 404(a) and 

its implementing rules require that an 

issuer’s annual report include a report 

of management on the issuer’s internal 

control over financial reporting.15

II. Procedural and Other Matters 

Under the Administrative Procedure 

Act, a notice of proposed rulemaking is 

not required when the agency, for good 

cause, finds that notice and public 

comment are impracticable, 

unnecessary, or contrary to the public 

interest.16 These amendments merely 

conform certain rules and forms to a 

newly enacted statute, Section 404(c) of 

the Sarbanes-Oxley Act, as amended by 

the Dodd-Frank Act, so the Commission 

finds that it is unnecessary to publish 

notice of these amendments.17 These 

amendments revise the Commission’s 

rules and forms to make them consistent 

with the internal control reporting 

requirements for non-accelerated filers 

in the Sarbanes-Oxley Act, as amended 

by the Dodd-Frank Act, and should 

therefore minimize potential confusion 

of issuers and investors. 

The Administrative Procedure Act 

also requires publication of a rule at 

least 30 days before its effective date 

unless the agency finds otherwise for 

good cause.18 The Commission finds 

there is good cause for the amendments 

to take effect on September 21, 2010 

because the Commission’s current 

applicable rules and forms do not 

conform to Section 404(c) of the 

Sarbanes-Oxley Act. 

The Commission is taking this action 

to implement the Dodd-Frank Act. 

Thus, any costs and benefits to the 

economy resulting from these 

amendments are mandated by the DoddFrank Act. Section 23(a)(2) of the 

Exchange Act requires the Commission, 

in adopting rules under the Exchange 

Act, to consider the competitive effects 

of such rules, if any, and to refrain from 

adopting a rule that would impose a 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Exchange Act.19 Section 

3(f) of the Exchange Act requires the 

Commission, whenever it engages in 

rulemaking and must consider or 

determine if an action is necessary or 

appropriate in the public interest, to 

consider if the action will promote 

efficiency, competition, and capital 

formation.20 We do not anticipate any 

competitive or capital formation effects 

from these amendments as they merely 

conform certain rules and forms to new 

Section 404(c) of the Sarbanes-Oxley 

Act. We do not anticipate that these 

conforming amendments will impose 

any costs, and they may promote 

efficiency by eliminating potential 

confusion that may otherwise result 

from a discrepancy between our rules 

and the statute. 

New Section 404(c) of the SarbanesOxley Act will have an effect on the 

‘‘collection of information’’ requirements 

within the meaning of the Paperwork 

Reduction Act of 1995.21 The current 

burden estimates for the relevant forms 

include 0.5 hours for approximately 

4,700 non-accelerated filers attributable 

to the burden of filing the auditor 

attestation report and related disclosure, 

but not the audit work. As a result of the 

statutory change, those non-accelerated 

filers no longer are required to include 

that attestation.22

III. Statutory Basis and Text of 

Amendments 

The amendments described in this 

release are made under the authority set 

forth in Section 19 of the Securities Act, 

Sections 3, 12, 13, 15, and 23 of the 

Exchange Act, and Sections 3(a) and 404 

of the Sarbanes-Oxley Act. 

List of Subjects 

17 CFR Part 210 

Accountants, Accounting, Reporting 

and recordkeeping requirements, 

Securities. 

17 CFR Parts 229 and 249 

Reporting and recordkeeping 

requirements, Securities. 

Text of Amendments 

■ In accordance with the foregoing, the 

Commission is amending Title 17, 


hsrobinson on DSK69SOYB1PROD with RULES
Federal Register / Vol. 75, No. 182 / Tuesday, September 21, 2010 / Rules and Regulations 57387 

Chapter II of the Code of Federal 

Regulations as follows: 

PART 210—FORM AND CONTENT OF 

AND REQUIREMENTS FOR FINANCIAL 

STATEMENTS, SECURITIES ACT OF 

1933, SECURITIES EXCHANGE ACT 

OF 1934, PUBLIC UTILITY HOLDING 

COMPANY ACT OF 1935, INVESTMENT 

COMPANY ACT OF 1940, INVESTMENT 

ADVISERS ACT OF 1940 AND ENERGY 

POLICY AND CONSERVATION ACT OF 

1975 

■ 1. The authority citation for part 210 

continues to read as follows: 

Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s, 

77z-2, 77z-3, 77aa(25), 77aa(26), 77nn(25), 

77nn(26), 78c, 78j–1, 78l, 78m, 78n, 78o(d), 

78q, 78u–5, 78w, 78ll, 78mm, 80a–8, 80a–20, 

80a–29, 80a–30, 80a–31, 80a–37(a), 80b–3, 

80b–11, 7202, and 7262, unless otherwise 

noted. 

* * * * * 

■ 2. Section 210.2–02 is amended by 

revising paragraph (f) to read as follows: 

§ 210.2–02 Accountants’ reports and 

attestation reports. 

* * * * * 

(f) Attestation report on internal 

control over financial reporting. (1) 

Every registered public accounting firm 

that issues or prepares an accountant’s 

report for a registrant, other than a 

registrant that is neither an accelerated 

filer nor a large accelerated filer (as 

defined in § 240.12b–2 of this chapter) 

or an investment company registered 

under section 8 of the Investment 

Company Act of 1940 (15 U.S.C. 80a–8), 

that is included in an annual report 

required by section 13(a) or 15(d) of the 

Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.) containing an 

assessment by management of the 

effectiveness of the registrant’s internal 

control over financial reporting must 

include an attestation report on internal 

control over financial reporting. 

(2) If an attestation report on internal 

control over financial reporting is 

included in an annual report required 

by section 13(a) or 15(d) of the 

Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.), it shall clearly state 

the opinion of the accountant, either 

unqualified or adverse, as to whether 

the registrant maintained, in all material 

respects, effective internal control over 

financial reporting, except in the rare 

circumstance of a scope limitation that 

cannot be overcome by the registrant or 

the registered public accounting firm 

which would result in the accounting 

firm disclaiming an opinion. The 

attestation report on internal control 

over financial reporting shall be dated, 

signed manually, identify the period 

covered by the report and indicate that 

the accountant has audited the 

effectiveness of internal control over 

financial reporting. The attestation 

report on internal control over financial 

reporting may be separate from the 

accountant’s report. 

* * * * * 

PART 229—STANDARD 

INSTRUCTIONS FOR FILING FORMS 

UNDER SECURITIES ACT OF 1933, 

SECURITIES EXCHANGE ACT OF 1934 

AND ENERGY POLICY AND 

CONSERVATION ACT OF 1975— 

REGULATION S–K 

■ 3. The authority citation for part 229 

continues to read, in part, as follows: 

Authority: 15 U.S.C. 77e, 77f, 77g, 77h, 77j, 

77k, 77s, 77z–2, 77z–3, 77aa(25), 77aa(26), 

77ddd, 77eee, 77ggg, 77hhh, 77iii, 77jjj, 

77nnn, 77sss, 78c, 78i, 78j, 78l, 78m, 78n, 

78o, 78u–5, 78w, 78ll, 78mm, 80a–8, 80a–9, 

80a–20, 80a–29, 80a–30, 80a–31(c), 80a–37, 

80a–38(a), 80a–39, 80b–11, and 7201 et seq.; 

and 18 U.S.C. 1350, unless otherwise noted. 

* * * * * 

■ 4. Section 229.308 is amended by 

revising paragraphs (a)(4) and (b) to read 

as follows: 

§ 229.308 (Item 308) Internal control over 

financial reporting. 

(a) * * * 

(4) If the registrant is an accelerated 

filer or a large accelerated filer (as 

defined in § 240.12b–2 of this chapter), 

or otherwise includes in its annual 

report a registered public accounting 

firm’s attestation report on internal 

control over financial reporting, a 

statement that the registered public 

accounting firm that audited the 

financial statements included in the 

annual report containing the disclosure 

required by this Item has issued an 

attestation report on the registrant’s 

internal control over financial reporting. 

(b) Attestation report of the registered 

public accounting firm. If the registrant 

is an accelerated filer or a large 

accelerated filer (as defined in 

§ 240.12b–2 of this chapter), provide the 

registered public accounting firm’s 

attestation report on the registrant’s 

internal control over financial reporting 

in the registrant’s annual report 

containing the disclosure required by 

this Item. 

* * * * * 

PART 249—FORMS, SECURITIES 

EXCHANGE ACT OF 1934 

■ 5. The authority citation for part 249 

continues to read, in part, as follows: 

Authority: 15 U.S.C. 78a et seq. and 7201 

et seq.; and 18 U.S.C. 1350, unless otherwise 

noted. 

* * * * * 

■ 6. Form 20–F (referenced in 

§ 249.220f) is amended by revising 

paragraphs (b)(4) and (c) of Item 15 to 

read as follows: 

Note: The text of Form 20–F does not, and 

this amendment will not, appear in the Code 

of Federal Regulations. 

FORM 20–F 

* * * * * 

PART II 

* * * * * 

Item 15. Controls and Procedures. 

* * * * * 

(b) * * * 

(4) If an issuer is an accelerated filer 

or a large accelerated filer (as defined in 

§ 240.12b–2 of this chapter), or 

otherwise includes in its annual report 

a registered public accounting firm’s 

attestation report on internal control 

over financial reporting, a statement that 

the registered public accounting firm 

that audited the financial statements 

included in the annual report 

containing the disclosure required by 

this Item has issued an attestation report 

on management’s assessment of the 

issuer’s internal control over financial 

reporting. 

(c) Attestation report of the registered 

public accounting firm. If an issuer is an 

accelerated filer or a large accelerated 

filer (as defined in § 240.12b–2 of this 

chapter), and where the Form is being 

used as an annual report filed under 

Section 13(a) or 15(d) of the Exchange 

Act, provide the registered public 

accounting firm’s attestation report on 

management’s assessment of the issuer’s 

internal control over financial reporting 

in the issuer’s annual report containing 

the disclosure required by this Item. 

* * * * * 

■ 7. Form 40–F (referenced in 

§ 249.240f) is amended by revising 

paragraphs (c)(4) and (d) in General 

Instruction B.(6) to read as follows: 

Note: The text of Form 40–F does not, and 

this amendment will not, appear in the Code 

of Federal Regulations. 

FORM 40–F 

* * * * * 

GENERAL INSTRUCTIONS 

* * * * * 

B. Information To Be Filed on this Form 

* * * * * 

(6) * * * 


hsrobinson on DSK69SOYB1PROD with RULES
57388 Federal Register / Vol. 75, No. 182 / Tuesday, September 21, 2010 / Rules and Regulations 

(c)(4) If an issuer is an accelerated 

filer or a large accelerated filer (as 

defined in 17 CFR 240.12b–2), or 

otherwise includes in its annual report 

a registered public accounting firm’s 

attestation report on internal control 

over financial reporting, a statement that 

the registered public accounting firm 

that audited the financial statements 

included in the annual report 

containing the disclosure required by 

this Item has issued an attestation report 

on management’s assessment of the 

issuer’s internal control over financial 

reporting. 

(d) Attestation report of the registered 

public accounting firm. If an issuer is an 

accelerated filer or a large accelerated 

filer (as defined in § 240.12b–2 of this 

chapter), and where the Form is being 

used as an annual report filed under 

Section 13(a) or 15(d) of the Exchange 

Act, provide the registered public 

accounting firm’s attestation report on 

management’s assessment of the issuer’s 

internal control over financial reporting 

in the issuer’s annual report containing 

the disclosure required by this Item. 

* * * * * 

By the Commission. 

Dated: September 15, 2010. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–23492 Filed 9–20–10; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[Docket No. USCG–2010–0383] 

RIN 1625–AA08 

Special Local Regulations for Marine 

Events; Patuxent River, Solomons, MD 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing special local regulations 

during the ‘‘Chesapeake Challenge’’ 

power boat races, a marine event to be 

held on the waters of the Patuxent 

River, near Solomons, MD on October 1, 

2010 and October 3, 2010. These special 

local regulations are necessary to 

provide for the safety of life on 

navigable waters during the event. This 

action is intended to temporarily restrict 

vessel traffic in a portion of the Patuxent 

River during the event. 

DATES: This rule is effective from 10 

a.m. on October 1, 2010 until 6 p.m. on 

October 3, 2010. 

ADDRESSES: Comments and material 

received from the public, as well as 

documents mentioned in this preamble 

as being available in the docket, are part 

of docket USCG–2010–0383 and are 

available online by going to http:// 

www.regulations.gov, inserting USCG– 

2010–0383 in the ‘‘Keyword’’ box, and 

then clicking ‘‘Search.’’ This material is 

also available for inspection or copying 

at the Docket Management Facility (M– 

30), U.S. Department of Transportation, 

West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this temporary 

rule, call or e-mail Mr. Ronald Houck, 

U.S. Coast Guard Sector, Baltimore, MD; 

telephone 410–576–2674, e-mail 

Ronald.L.Houck@uscg.mil. If you have 

questions on viewing the docket, call 

Renee V. Wright, Program Manager, 

Docket Operations, telephone 202–366– 

9826. 

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

On June 10, 2010, we published a 

notice of proposed rulemaking (NPRM) 

entitled ‘‘Special Local Regulations for 

Marine Events; Patuxent River, 

Solomons, MD’’ in the Federal Register 

(75 FR 32866). Additionally, on July 19, 

2010, we published a supplemental 

notice of proposed rulemaking (SNPRM) 

entitled ‘‘Special Local Regulations for 

Marine Events; Patuxent River, 

Solomons, MD’’ in the Federal Register 

(75 FR 41789). We received no 

comments on the proposed rules. No 

public meeting was requested, and none 

was held. 

Under 5 U.S.C. 553(d)(3), the Coast 

Guard finds that good cause exists for 

making this rule effective less than 30 

days after publication in the Federal 

Register. Due to the need for immediate 

action, the restriction of vessel traffic is 

necessary to protect life, property and 

the environment against the hazards 

associated with high-speed offshore 

power boat races on confined navigable 

waters. Such hazards include damages 

and injuries caused by collisions with 

other vessels and navigational 

obstructions and hazards caused by 

vessel sinkings. In addition, with no 

changes from the information provided 

in the SNPRM and no comments 

received, the public has been aware of 

the scheduled date since July 19, 2010. 

Therefore, a 30-day notice is contrary to 

the public interest. Delaying the 

effective date would be contrary to the 

regulated area’s intended objectives of 

protecting persons and vessels involved 

in the event, and enhancing public and 

maritime safety. 

Basis and Purpose 

On October 1, 2010 and October 3, 

2010, the Chesapeake Bay Power Boat 

Association will sponsor power boat 

races on the Patuxent River near 

Solomons, MD. The event consists of 

offshore power boats racing in a 

counter-clockwise direction on a 

racetrack-type course located between 

the Governor Thomas Johnson Memorial 

(SR–4) Bridge and the U.S. Naval Air 

Station Patuxent River, MD. The start 

and finish lines will be located near the 

Solomon’s Pier. A large spectator fleet is 

expected during the event. Due to the 

need for vessel control during the event, 

the Coast Guard will temporarily restrict 

vessel traffic in the event area to provide 

for the safety of participants, spectators 

and other transiting vessels. 

Discussion of Comments and Changes 

The Coast Guard received no 

comments in response to the NPRM and 

SNPRM. No public meeting was 

requested and none was held. The 

regulation proposed in the SNPRM is 

the regulation being added. 

Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

executive orders related to rulemaking. 

Below we summarize our analyses 

based on 13 of these statutes or 

executive orders. 

Regulatory Planning and Review 

This rule is not a significant 

regulatory action under section 3(f) of 

Executive Order 12866, Regulatory 

Planning and Review, and does not 

require an assessment of potential costs 

and benefits under section 6(a)(3) of that 

Order. The Office of Management and 

Budget has not reviewed it under that 

Order. 

Although this regulation will prevent 

traffic from transiting a portion of the 

Patuxent River during the event, the 

effect of this regulation will not be 

significant due to the limited duration 

that the regulated area will be in effect 

and the extensive advance notifications 

that will be made to the maritime 

community via the Local Notice to 

Mariners and marine information 

broadcasts, so mariners can adjust their 

plans accordingly. Additionally, the 

regulated area has been narrowly 

tailored to impose the least impact on 

general navigation yet provide the level 


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