Defense Priorities and Allocations System (DPAS): Administrative and Technical Corrections, 39526-39534 [06-6123]
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[FR Doc. 06–6145 Filed 7–12–06; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 700
[Docket No. 060614165–6165–01]
RIN 0694–AD79
Defense Priorities and Allocations
System (DPAS): Administrative and
Technical Corrections
Bureau of Industry and
Security, U.S. Department of Commerce.
ACTION: Final rule.
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AGENCY:
SUMMARY: The Bureau of Industry and
Security (BIS) is amending the Defense
Priorities and Allocations System
(DPAS) Regulation (15 CFR part 700) to
make administrative and technical
corrections. These amendments do not
alter the substance or effect of the DPAS
regulation.
DATES: This rule is effective July 13,
2006.
FOR FURTHER INFORMATION CONTACT:
Liam McMenamin, Office of Strategic
Industries and Economic Security,
Bureau of Industry and Security, U.S.
Department of Commerce, Telephone:
(202) 482–2233.
SUPPLEMENTARY INFORMATION:
Background
Under Title I of the Defense
Production Act of 1950 (DPA), as
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amended, (50 U.S.C. App. 2061, et seq.),
the President is authorized to require
preferential acceptance and
performance of contracts or orders
supporting certain approved national
defense and energy programs, and to
allocate materials, services, and
facilities in such a manner as to promote
these approved programs. Additional
priorities authority is found in section
18 of the Selective Service Act of 1948
(50 U.S.C. App. 468), 10 U.S.C. 2538,
and 50 U.S.C. 82. The President
delegated the priorities and allocations
authorities of the DPA in Executive
Order 12919 (June 3, 1994; amended by
Executive Order 13286, February 28,
2003). As part of that delegation, the
President designated the Secretary of
Commerce to administer the Defense
Priorities and Allocations System
(DPAS). DPAS authority has also been
extended to support emergency
preparedness activities under Title VI of
the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (Stafford
Act), as amended (42 U.S.C. 5195, et
seq.). The DPAS regulation is found at
15 CFR part 700.
As part of its periodic review of the
DPAS regulation, the Department of
Commerce has identified several
typographical errors and outdated
provisions in the DPAS regulation.
Accordingly, this rule amends the DPAS
regulation to correct those errors and
delete outdated or obsolete provisions
and language. This rule also amends the
list of approved programs in Schedule I
to the regulation.
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Subject
VOR/DME RWY 19,
AMDT 2.
RNAV (GPS) RWY 30,
ORIG.
ILS RWY 13R, AMDT 6B.
CONVERGING ILS RWY
13R, AMDT 5B.
ILS OR LOC RWY 32,
AMDT 1.
VOR RWY 32, AMDT 11.
RNAV (GPS) RWY 32,
ORIG–A.
RNAV (GPS) RWY 3,
ORIG.
RNAV (GPS) RWY 29L,
ORIG.
VOR/DME A, AMDT 2.
RNAV (GPS) RWY 30,
ORIG.
RNAV (GPS) RWY 12,
ORIG.
RNAV (GPS) RWY 17R,
ORIG.
RNAV (GPS) RWY 17L,
ORIG.
Amendments to the DPAS Regulation
This rule revises the DPAS regulation
by correcting the citation to the Defense
Production Act’s definition of ‘‘national
defense’’ in section 700.1(c) and notes
that the definition of this term was
amended in the December 2003
reauthorization of the Defense
Production Act (Pub. L. 108–195) to
include critical infrastructure protection
and restoration.
This rule also corrects a typographical
error in section 700.2(a) by replacing
‘‘Schedule 1’’ with ‘‘Schedule I.’’
This rule removes erroneous
references in section 700.2(c), 700.10(b),
700.18(b)(1)(i), 700.18(b)(2), and
700.55(b)(2) to copies of delegations of
authority and memoranda of
understanding being provided as
appendices to part 700. The Department
has not published these documents as
appendices to part 700 since 1998,
following a determination that these
documents are of limited public interest
because they describe administrative
interagency agreements.
This rule replaces the words
‘‘Director, Federal Emergency
Management Agency’’ with ‘‘Secretary
of Homeland Security’’ in the definition
of Approved Program in section 700.8 to
reflect the amendments to Executive
Order 12919 contained in Executive
Order 13286.
This rule changes the program
identification symbol examples in
section 700.11(c) from ‘‘A1, B2, or H6’’
to read ‘‘A1, C2, or N1.’’ Program
identification symbols indicate which
approved program is being supported by
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Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations
a rated order. The ‘‘B2’’ symbol is not
an approved program identification
symbol and the ‘‘H6’’ symbol is not
commonly used.
This rule corrects a citation error in
section 700.18(a)(2)(iv)(b). Information
on requesting priority rating authority is
found in section 700.51, not in section
700.53.
This rule adds a sentence to section
700.18(b)(1)(i) clarifying that the
Departments of Agriculture and
Commerce have agreed that the
Department of Defense may place rated
contracts and orders for food resources
in support of troops, including but not
limited to, meals ready to eat (MRE),
‘‘tray-packs’’ (T-rations), A-rations, and
B-rations. The 1991 agreement between
the Departments of Agriculture and
Commerce is recorded as Attachment A
to the Department of Commerce’s
delegation of authority to the
Department of Defense. This rule also
removes the erroneous reference in
section 700.18(b)(1)(i) to a copy of the
Department of Commerce’s delegation of
authority to the Department of Defense
being provided as an appendix to part
700.
This rule removes erroneous
references to a memorandum of
understanding between the Departments
of Commerce and Interior in sections
700.18(b)(1)(vii) and 700.18(b)(2). The
Department of Commerce terminated
this memorandum of understanding in
1998.
This rule removes section 700.30(b).
The Department of Commerce has
rescinded DPAS Emergency Delegation
1. The Department of Commerce has
reviewed its emergency preparedness
plans and determined that DPAS
Emergency Delegation 1 is not necessary
to administer this regulation in a
national emergency because the
Department’s internal emergency plans
provide for continuation of the DPAS
and related activities.
This rule corrects a citation error in
section 700.60(b). Administrative
Subpoenas, Demands for Information,
and Inspection Authorizations are
discussed in section 700.71(c), not in
section 700.71(b).
This rule changes the name ‘‘Office of
Industrial Resource Administration,’’
referenced in sections 700.72(b) and
700.93, to ‘‘Office of Strategic Industries
and Economic Security’’ to reflect the
current name of that organization.
This rule corrects an error in section
700.81(b) related to the title of the
official who has the discretion to accept
an appeal after the prescribed 45-day
period for good cause shown. The
Assistant Secretary for Export
Administration has this discretion.
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This rule revises Schedule I to the
regulation by adding a list of Homeland
Security programs in the first column to
reflect the Department of Commerce’s
March 2006 DPAS delegation to the
Department of Homeland Security.
This rule revises the current N1
program identification symbol and adds
N2–N8 to the list of approved programs
for priorities and allocations support in
Schedule I’s first and second columns.
The Department of Homeland Security
provided the Department of Commerce
with the list of Homeland Security
programs approved for priorities and
allocations support in June 2006.
This rule also replaces the words
‘‘Federal Emergency Management
Agency’’ with ‘‘Department of
Homeland Security’’ in Schedule I’s
third column to reflect the March 2006
DPAS delegation to the Department of
Homeland Security.
This rule changes the names of the
Department of Defense agencies listed in
footnote 1 to Schedule I to reflect the
current organizational structure of the
Department of Defense.
This rule also corrects an error in
Appendix I to part 700 by replacing the
former Form BXA–999, ‘‘Request for
Special Priorities Assistance,’’ with a
copy of the current Form BIS–999,
‘‘Request for Special Priorities
Assistance.’’
Rulemaking Requirements
1. This rule has been determined to be
not significant for purposes of Executive
Order 12866.
2. Notwithstanding any other
provision of law, no person is required
to respond to, nor shall any person be
subject to a penalty for failure to comply
with a collection of information, subject
to the requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501,
et seq.) unless the collection of
information displays a currently valid
Office of Management and Budget
control number. This rule does not
involve any collections of information
that are subject to the Paperwork
Reduction Act.
3. This rule does not contain policies
with federalism implications as this
term is defined in Executive Order
13132.
4. The Department finds that there is
good cause under 5 U.S.C. 553(b)(B) to
waive the provisions of the
Administrative Procedure Act (APA)
requiring prior notice and the
opportunity for public comment.
Because these revisions are not
substantive changes to the DPAS
regulation, and because the nature of
these changes is of little public interest,
it is unnecessary to provide notice and
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39527
opportunity for public comment under
APA standards. In addition, the 30-day
delay in effectiveness required by 5
U.S.C. 553(d) is not applicable because
this rule is not a substantive rule. It is
purely administrative in nature and
does not affect the rights of the public.
No other law requires that a notice of
proposed rulemaking and an
opportunity for public comment be
given for this rule.
The analytical requirements of the
Regulatory Flexibility Act (5 U.S.C. 601,
et seq.) are not applicable because
notice of proposed rulemaking and
opportunity for public comment are not
required to be given for this rule under
the Administrative Procedure Act or by
any other law.
List of Subjects in 15 CFR Part 700
Administrative practice and
procedure, Business and industry,
Government contracts, National defense,
Reporting and recordkeeping
requirements, Strategic and critical
materials.
For the reasons discussed in the
preamble, the Department of Commerce
amends 15 CFR part 700 as follows:
I
PART 700—[AMENDED]
1. The authority citation for part 700
continues to read as follows:
I
Authority: Titles I and VII of the Defense
Production Act of 1950, as amended (50
U.S.C. App. 2061, et seq.), Title VI of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5195, et
seq.), Executive Order 12919, 59 FR 29525,
3 CFR, 1994 Comp. 901, and Executive Order
13286, 68 FR 10619, 3 CFR, 2003 Comp. 166;
section 18 of the Selective Service Act of
1948 (50 U.S.C. App. 468), 10 U.S.C. 2538,
50 U.S.C. 82, and Executive Order 12742, 56
FR 1079, 3 CFR, 1991 Comp. 309; and
Executive Order 12656, 53 FR 226, 3 CFR,
1988 Comp. 585.
2. In § 700.1, revise the second
sentence in paragraph (c) to read as
follows:
I
§ 700.1
Purpose of this regulation.
*
*
*
*
*
(c) * * * The definition of ‘‘national
defense’’ in section 702(14) of the
Defense Production Act provides that
this term includes ‘‘emergency
preparedness activities’’ conducted
pursuant to Title VI of the Stafford Act
and ‘‘critical infrastructure protection
and restoration.’’
*
*
*
*
*
3. In § 700.2, revise the last sentence
in paragraph (a) and paragraph (c) to
read as follows:
I
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§ 700.2
Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations
Introduction.
(a) * * * A complete list of currently
approved programs is provided at
Schedule I to this part.
*
*
*
*
*
(c) Commerce has delegated
authorities to place priority ratings on
contracts or orders necessary or
appropriate to promote the national
defense to the government agencies that
issue such contracts or orders. Schedule
I includes a list of agencies delegated
this authority.
I 4. In § 700.8, revise the definition of
Approved Program to read as follows:
§ 700.8
Definitions.
*
*
*
*
*
Approved program. A program
determined as necessary or appropriate
for priorities and allocations support to
promote the national defense by the
Secretary of Defense, the Secretary of
Energy, or the Secretary of Homeland
Security, under the authority of the
Defense Production Act, the Stafford
Act, and Executive Order 12919, or the
Selective Service Act and related
statutes and Executive Order 12742.
*
*
*
*
*
I 5. In § 700.10, revise paragraph (b) to
read as follows:
§ 700.10
Delegation of authority.
*
*
*
*
*
(b) Within the Department of
Commerce, these responsibilities have
been assigned to the Office of Strategic
Industries and Economic Security. The
Department of Commerce has
authorized the Delegate Agencies to
assign priority ratings to orders for items
needed for approved programs.
I 6. In § 700.11, revise the first sentence
in paragraph (c) to read as follows:
§ 700.11
Priority ratings.
*
*
*
*
*
(c) Priority ratings. A priority rating
consists of the rating symbol—DO and
DX—and the program identification
symbol, such as A1, C2, or N1. * * *
I 7. In § 700.18, revise the second
sentence in paragraph (a)(2)(iv)(B) and
paragraphs (b)(1) and (b)(2) to read as
follows:
§ 700.18
orders.
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*
Limitations on placing rated
*
*
(2) * * *
(iv) * * *
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*
§ 700.55 Assistance programs with
Canada and other nations.
*
*
*
*
*
(b) * * *
(2) The Department of Commerce
coordinates with the Canadian Public
*
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(B) * * * [For information on
requesting priority rating authority, see
§ 700.51.]
*
*
*
*
*
(b) Jurisdiction limitations. (1) The
priorities and allocations authority for
certain items have been delegated under
Executive Orders 12919 and 12742,
other executive order, or Interagency
Memoranda of Understanding to other
agencies. Unless otherwise agreed to by
the concerned agencies, the provisions
of this part are not applicable to these
items which include:
(i) Food resources, food resource
facilities, and the domestic distribution
of farm equipment and commercial
fertilizer (Department of Agriculture)
(The Department of Agriculture and the
Department of Commerce have agreed
that the Department of Defense may
place rated contracts and orders for food
resources in support of troops,
including but not limited to, meals
ready to eat (MREs), ‘‘tray-packs’’ (Trations), A-rations, and B-rations);
(ii) All forms of energy, including
radioisotopes, stable isotopes, source
material, and special nuclear material
produced in Government-owned plants
or facilities operated by or for the
Department of Energy (Department of
Energy);
(iii) Health resources (Department of
Health and Human Services);
(iv) All forms of civil transportation
(Department of Transportation);
(v) Water resources (Department of
Defense/U.S. Army Corps of Engineers);
and
(vi) Communications services
(National Communications System
under Executive Order 12472 of April 3,
1984).
(2) The jurisdiction of the Department
of Commerce and the Departments of
Energy and Agriculture over certain
specific items included in the categories
listed above has been clarified by
Interagency Memoranda of
Understanding.
*
*
*
*
*
I 8. In § 700.30, remove and reserve
paragraph (b).
I 9. In § 700.55, revise paragraph (b)(2)
to read as follows:
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Works and Government Services Canada
on all matters of mutual concern
relating to the administration of this
regulation.
*
*
*
*
*
I 10. In § 700.60, revise the second
sentence in paragraph (b) to read as
follows:
§ 700.60
General provisions.
*
*
*
*
*
(b) * * * Other official actions which
pertain to compliance (Administrative
Subpoenas, Demands for Information,
and Inspection Authorizations) are
discussed in § 700.71(c).
I 11. In § 700.72, revise paragraph (b) to
read as follows:
§ 700.72
Compulsory process.
*
*
*
*
*
(b) Compulsory process may be
sought in advance of an audit,
investigation, or other inquiry, if, in the
judgment of the Director of the Office of
Strategic Industries and Economic
Security, U.S. Department of Commerce,
in consultation with the Chief Counsel
for Industry and Security, U.S.
Department of Commerce, there is
reason to believe that a person will
refuse to permit an audit, investigation,
or other inquiry, or that other
circumstances exist which make such
process desirable or necessary.
I 12. In § 700.81, revise the last
sentence in paragraph (b) to read as
follows:
§ 700.81
Appeals.
*
*
*
*
*
(b) * * * After this 45-day period, an
appeal may be accepted at the discretion
of the Assistant Secretary for Export
Administration for good cause shown.
*
*
*
*
*
I 13. Revise § 700.93 to read as follows:
§ 700.93
Communications.
All communications concerning this
regulation, including requests for copies
of the regulation and explanatory
information, requests for guidance or
clarification, and requests for
adjustment or exception shall be
addressed to the Office of Strategic
Industries and Economic Security,
Room 3876, U.S. Department of
Commerce, Washington, DC 20230, Ref:
DPAS; telephone: (202) 482–3634 or fax:
(202) 482–5650.
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Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations
Schedule I to Part 700—Approved
Programs and Delegate Agencies
*
*
*
*
14. In Schedule I to Part 700, add the
heading ‘‘Homeland security programs’’,
I
*
Program identification symbol
*
*
Homeland security programs:
N1 ...........................................
N2 ...........................................
N3
N4
N5
N6
N7
N8
revise N1, add N2–N8, and revise 1 to
read as follows:
...........................................
...........................................
...........................................
...........................................
...........................................
...........................................
Approved program
*
Delegate agency
*
*
*
Federal emergency preparedness, mitigation, response, and recovery
State, local, tribal government emergency preparedness, mitigation,
response, and recovery.
Intelligence and warning systems ..........................................................
Border and transportation security .........................................................
Domestic and counter-terrorism, including law enforcement .................
Chemical, biological, radiological, and nuclear countermeasures .........
Critical infrastructure protection and restoration ....................................
Miscellaneous .........................................................................................
*
*
*
*
*
I 15. Revise Appendix I to part 700 to
read as follows:
*
Department of Homeland Security.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Appendix I to Part 700—Form BIS–
999—Request for Special Priorities
Assistance
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BILLING CODE 3510–33–P
1 Department of Defense includes: The Office of
the Secretary of Defense, the Military Departments,
the Joint Staff, the Combatant Commands, the
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Defense Agencies, the Defense Field Activities, all
other organizational entities in the Department of
Defense, and, for purposes of this regulation, the
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Central Intelligence Agency and the National
Aeronautics and Space Administration as
Associated Agencies.
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39534
Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations
Dated: July 3, 2006.
Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. 06–6123 Filed 7–12–06; 8:45 am]
BILLING CODE 3510–33–C
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 41
RIN 3038 AB86
I. Introduction
SECURITIES AND EXCHANGE
COMMISSION
17 CFR Part 240
[Release No. 34–54106; File No. S7–07–06]
RIN 3235–AJ54
Joint Final Rules: Application of the
Definition of Narrow-Based Security
Index to Debt Securities Indexes and
Security Futures on Debt Securities
Commodity Futures Trading
Commission and Securities and
Exchange Commission.
ACTION: Joint final rules.
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AGENCIES:
SUMMARY: The Commodity Futures
Trading Commission (‘‘CFTC’’) and the
Securities and Exchange Commission
(‘‘SEC’’) (together, the ‘‘Commissions’’)
are adopting a new rule and amending
an existing rule under the Commodity
Exchange Act (‘‘CEA’’) and adopting
two new rules under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’).
The rules will modify the applicable
statutory listing standards requirements
to permit security futures to be based on
individual debt securities or a narrowbased security index composed of such
securities. In addition, these rules and
rule amendment will exclude from the
definition of ‘‘narrow-based security
index’’ debt securities indexes that
satisfy specified criteria. A future on a
debt securities index that is excluded
from the definition of narrow-based
security index will not be a security
future and may trade subject to the
exclusive jurisdiction of the CFTC.
EFFECTIVE DATE: August 14, 2006.
FOR FURTHER INFORMATION CONTACT:
CFTC: Elizabeth L. Ritter, Deputy
General Counsel, at 202/418–5052, or
Julian E. Hammar, Counsel, at 202/418–
5118, Office of General Counsel; or
Thomas M. Leahy, Jr., Associate
Director, Product Review, at 202/418–
5278, Division of Market Oversight,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street, NW., Washington, DC
20581.
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17:17 Jul 12, 2006
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SEC: Yvonne Fraticelli, Special
Counsel, at 202/551–5654; or Leah
Mesfin, Special Counsel, at 202/551–
5655, Office of Market Supervision,
Division of Market Regulation,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–6628.
SUPPLEMENTARY INFORMATION: The
Commissions are adopting Rule 41.15
and amending Rule 41.21 under the
CEA,1 and adding Rule 3a55–4 and Rule
6h–2 under the Exchange Act.2
A. Background
Futures contracts on single securities
and on narrow-based security indexes
(collectively, ‘‘security futures’’) are
jointly regulated by the CFTC and the
SEC.3 The definition of narrow-based
security index under both the CEA and
the Exchange Act sets forth the criteria
for such joint regulatory jurisdiction.
Futures on indexes that are not narrowbased security indexes are subject to the
exclusive jurisdiction of the CFTC.
Under the CEA and the Exchange Act,
an index is a narrow-based security
index if it meets any one of four
criteria.4 Further, the CEA and
Exchange Act provide that,
notwithstanding the statutory criteria,
an index is not a narrow-based security
index if a contract of sale for future
delivery on the index is traded on or
subject to the rules of a board of trade
and meets such requirements as are
jointly established by rule, regulation, or
order of the Commissions.5
The statutory definition of narrowbased security index was designed
primarily for indexes composed of
equity securities, not debt securities.6
For example, while three criteria in the
narrow-based security index definition
1 All references to the CEA are to 7 U.S.C. 1 et
seq.
2 All references to the Exchange Act are to 15
U.S.C. 78a et seq.
3 See Section 1a(31) of the CEA, 7 U.S.C. 1a(31);
Section 3(a)(55)(A) of the Exchange Act, 15 U.S.C.
78c(a)(55)(A).
4 The four criteria are as follows: (1) It has nine
or fewer component securities; (2) any one of its
component securities comprises more than 30% of
its weighting; (3) any group of five of its component
securities together comprise more than 60% of its
weighting; or (4) the lowest weighted component
securities comprising, in the aggregate, 25% of the
index’s weighting have an aggregate dollar value of
average daily trading volume (‘‘ADTV’’) of less than
$50 million (or in the case of an index with 15 or
more component securities, $30 million). See
Section 1a(25)(A)(i)–(iv) of the CEA, 7 U.S.C.
1a(25)(A)(i)–(iv); Section 3(a)(55)(B)(i)–(iv) of the
Exchange Act, 15 U.S.C. 78c(a)(55)(B)(i)–(iv).
5 See Section 1a(25)(B)(vi) of the CEA, 7 U.S.C.
1a(25)(B)(vi); Section 3(a)(55)(C)(vi) of the Exchange
Act, 15 U.S.C. 78c(a)(55)(C)(vi).
6 Debt securities include notes, bonds,
debentures, or evidences of indebtedness.
PO 00000
Frm 00022
Fmt 4700
Sfmt 4700
evaluate the composition and weighting
of the securities in the index, another
criterion evaluates the liquidity of an
index’s component securities. The
liquidity criterion in the statutory
definition of narrow-based security
index, which is important for indexes
composed of common stock, is not an
appropriate criterion for indexes
composed of debt securities because
debt securities generally do not trade in
the same manner as equity securities. In
particular, because few debt securities
meet the ADTV criterion in the statutory
definition of narrow-based security
index, most indexes composed of debt
securities, regardless of the number or
amount of underlying component
securities in the index, would fall
within the statutory definition of
narrow-based security index.
On April 10, 2006, the Commissions
proposed rules 7 that would exclude
debt securities indexes that satisfied
certain criteria from the statutory
definition of narrow-based security
index. Futures on debt securities
indexes that satisfy the criteria of the
exclusion would not be security futures
and thus would be subject to the
exclusive jurisdiction of the CFTC. In
addition, the proposed rules and rule
amendment would modify the statutory
listing standards to permit the trading of
security futures on single debt securities
and narrow-based security indexes
composed of debt securities.
The Commissions received comment
letters on the proposed rules from two
futures exchanges, the Chicago
Mercantile Exchange (‘‘CME’’) and the
Board of Trade of the City of Chicago
(‘‘CBOT’’),8 and from the Futures
Industry Association (‘‘FIA’’).9 All of the
commenters generally supported the
Commissions’ proposal. The CME and
the CBOT requested the opportunity for
public comment on the listing standards
7 See Securities Exchange Act Release No. 53560
(March 29, 2006), 71 FR 18030 (April 10, 2006)
(‘‘Proposing Release’’).
8 See letter from Craig S. Donohue, Chief
Executive Officer, CME, to Jean A. Webb, Secretary,
CFTC, and Jonathan G. Katz, Secretary, SEC, dated
April 25, 2006 (‘‘CME Letter’’); letter from Bernard
Dan, CBOT, to Jean A. Webb, Secretary, CFTC, and
Nancy M. Morris, Secretary, SEC, dated May 10,
2006 (‘‘CBOT Letter’’).
9 See letter from John M. Damgard, President,
FIA, to Jean A. Webb, Secretary, CFTC, and Nancy
M. Morris, Secretary, SEC, dated May 16, 2006
(‘‘FIA Letter’’). In addition, the FIA supported the
comments of the CME and the CBOT and urged the
Commissions to propose a regulatory standard
governing the offer and sale of security futures
contracts on indexes composed of non-U.S. equities
that trade on or are subject to the rules of exchanges
or boards of trade located outside of the United
States. Because the proposed rules did not relate to
indexes composed of non-U.S. equities, the
Commissions are not addressing this comment in
this release.
E:\FR\FM\13JYR1.SGM
13JYR1
Agencies
[Federal Register Volume 71, Number 134 (Thursday, July 13, 2006)]
[Rules and Regulations]
[Pages 39526-39534]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-6123]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 700
[Docket No. 060614165-6165-01]
RIN 0694-AD79
Defense Priorities and Allocations System (DPAS): Administrative
and Technical Corrections
AGENCY: Bureau of Industry and Security, U.S. Department of Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Industry and Security (BIS) is amending the
Defense Priorities and Allocations System (DPAS) Regulation (15 CFR
part 700) to make administrative and technical corrections. These
amendments do not alter the substance or effect of the DPAS regulation.
DATES: This rule is effective July 13, 2006.
FOR FURTHER INFORMATION CONTACT: Liam McMenamin, Office of Strategic
Industries and Economic Security, Bureau of Industry and Security, U.S.
Department of Commerce, Telephone: (202) 482-2233.
SUPPLEMENTARY INFORMATION:
Background
Under Title I of the Defense Production Act of 1950 (DPA), as
amended, (50 U.S.C. App. 2061, et seq.), the President is authorized to
require preferential acceptance and performance of contracts or orders
supporting certain approved national defense and energy programs, and
to allocate materials, services, and facilities in such a manner as to
promote these approved programs. Additional priorities authority is
found in section 18 of the Selective Service Act of 1948 (50 U.S.C.
App. 468), 10 U.S.C. 2538, and 50 U.S.C. 82. The President delegated
the priorities and allocations authorities of the DPA in Executive
Order 12919 (June 3, 1994; amended by Executive Order 13286, February
28, 2003). As part of that delegation, the President designated the
Secretary of Commerce to administer the Defense Priorities and
Allocations System (DPAS). DPAS authority has also been extended to
support emergency preparedness activities under Title VI of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (Stafford
Act), as amended (42 U.S.C. 5195, et seq.). The DPAS regulation is
found at 15 CFR part 700.
As part of its periodic review of the DPAS regulation, the
Department of Commerce has identified several typographical errors and
outdated provisions in the DPAS regulation. Accordingly, this rule
amends the DPAS regulation to correct those errors and delete outdated
or obsolete provisions and language. This rule also amends the list of
approved programs in Schedule I to the regulation.
Amendments to the DPAS Regulation
This rule revises the DPAS regulation by correcting the citation to
the Defense Production Act's definition of ``national defense'' in
section 700.1(c) and notes that the definition of this term was amended
in the December 2003 reauthorization of the Defense Production Act
(Pub. L. 108-195) to include critical infrastructure protection and
restoration.
This rule also corrects a typographical error in section 700.2(a)
by replacing ``Schedule 1'' with ``Schedule I.''
This rule removes erroneous references in section 700.2(c),
700.10(b), 700.18(b)(1)(i), 700.18(b)(2), and 700.55(b)(2) to copies of
delegations of authority and memoranda of understanding being provided
as appendices to part 700. The Department has not published these
documents as appendices to part 700 since 1998, following a
determination that these documents are of limited public interest
because they describe administrative interagency agreements.
This rule replaces the words ``Director, Federal Emergency
Management Agency'' with ``Secretary of Homeland Security'' in the
definition of Approved Program in section 700.8 to reflect the
amendments to Executive Order 12919 contained in Executive Order 13286.
This rule changes the program identification symbol examples in
section 700.11(c) from ``A1, B2, or H6'' to read ``A1, C2, or N1.''
Program identification symbols indicate which approved program is being
supported by
[[Page 39527]]
a rated order. The ``B2'' symbol is not an approved program
identification symbol and the ``H6'' symbol is not commonly used.
This rule corrects a citation error in section 700.18(a)(2)(iv)(b).
Information on requesting priority rating authority is found in section
700.51, not in section 700.53.
This rule adds a sentence to section 700.18(b)(1)(i) clarifying
that the Departments of Agriculture and Commerce have agreed that the
Department of Defense may place rated contracts and orders for food
resources in support of troops, including but not limited to, meals
ready to eat (MRE), ``tray-packs'' (T-rations), A-rations, and B-
rations. The 1991 agreement between the Departments of Agriculture and
Commerce is recorded as Attachment A to the Department of Commerce's
delegation of authority to the Department of Defense. This rule also
removes the erroneous reference in section 700.18(b)(1)(i) to a copy of
the Department of Commerce's delegation of authority to the Department
of Defense being provided as an appendix to part 700.
This rule removes erroneous references to a memorandum of
understanding between the Departments of Commerce and Interior in
sections 700.18(b)(1)(vii) and 700.18(b)(2). The Department of Commerce
terminated this memorandum of understanding in 1998.
This rule removes section 700.30(b). The Department of Commerce has
rescinded DPAS Emergency Delegation 1. The Department of Commerce has
reviewed its emergency preparedness plans and determined that DPAS
Emergency Delegation 1 is not necessary to administer this regulation
in a national emergency because the Department's internal emergency
plans provide for continuation of the DPAS and related activities.
This rule corrects a citation error in section 700.60(b).
Administrative Subpoenas, Demands for Information, and Inspection
Authorizations are discussed in section 700.71(c), not in section
700.71(b).
This rule changes the name ``Office of Industrial Resource
Administration,'' referenced in sections 700.72(b) and 700.93, to
``Office of Strategic Industries and Economic Security'' to reflect the
current name of that organization.
This rule corrects an error in section 700.81(b) related to the
title of the official who has the discretion to accept an appeal after
the prescribed 45-day period for good cause shown. The Assistant
Secretary for Export Administration has this discretion.
This rule revises Schedule I to the regulation by adding a list of
Homeland Security programs in the first column to reflect the
Department of Commerce's March 2006 DPAS delegation to the Department
of Homeland Security.
This rule revises the current N1 program identification symbol and
adds N2-N8 to the list of approved programs for priorities and
allocations support in Schedule I's first and second columns. The
Department of Homeland Security provided the Department of Commerce
with the list of Homeland Security programs approved for priorities and
allocations support in June 2006.
This rule also replaces the words ``Federal Emergency Management
Agency'' with ``Department of Homeland Security'' in Schedule I's third
column to reflect the March 2006 DPAS delegation to the Department of
Homeland Security.
This rule changes the names of the Department of Defense agencies
listed in footnote 1 to Schedule I to reflect the current
organizational structure of the Department of Defense.
This rule also corrects an error in Appendix I to part 700 by
replacing the former Form BXA-999, ``Request for Special Priorities
Assistance,'' with a copy of the current Form BIS-999, ``Request for
Special Priorities Assistance.''
Rulemaking Requirements
1. This rule has been determined to be not significant for purposes
of Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with a collection of information, subject to the
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et
seq.) unless the collection of information displays a currently valid
Office of Management and Budget control number. This rule does not
involve any collections of information that are subject to the
Paperwork Reduction Act.
3. This rule does not contain policies with federalism implications
as this term is defined in Executive Order 13132.
4. The Department finds that there is good cause under 5 U.S.C.
553(b)(B) to waive the provisions of the Administrative Procedure Act
(APA) requiring prior notice and the opportunity for public comment.
Because these revisions are not substantive changes to the DPAS
regulation, and because the nature of these changes is of little public
interest, it is unnecessary to provide notice and opportunity for
public comment under APA standards. In addition, the 30-day delay in
effectiveness required by 5 U.S.C. 553(d) is not applicable because
this rule is not a substantive rule. It is purely administrative in
nature and does not affect the rights of the public. No other law
requires that a notice of proposed rulemaking and an opportunity for
public comment be given for this rule.
The analytical requirements of the Regulatory Flexibility Act (5
U.S.C. 601, et seq.) are not applicable because notice of proposed
rulemaking and opportunity for public comment are not required to be
given for this rule under the Administrative Procedure Act or by any
other law.
List of Subjects in 15 CFR Part 700
Administrative practice and procedure, Business and industry,
Government contracts, National defense, Reporting and recordkeeping
requirements, Strategic and critical materials.
0
For the reasons discussed in the preamble, the Department of Commerce
amends 15 CFR part 700 as follows:
PART 700--[AMENDED]
0
1. The authority citation for part 700 continues to read as follows:
Authority: Titles I and VII of the Defense Production Act of
1950, as amended (50 U.S.C. App. 2061, et seq.), Title VI of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5195, et seq.), Executive Order 12919, 59 FR 29525, 3 CFR,
1994 Comp. 901, and Executive Order 13286, 68 FR 10619, 3 CFR, 2003
Comp. 166; section 18 of the Selective Service Act of 1948 (50
U.S.C. App. 468), 10 U.S.C. 2538, 50 U.S.C. 82, and Executive Order
12742, 56 FR 1079, 3 CFR, 1991 Comp. 309; and Executive Order 12656,
53 FR 226, 3 CFR, 1988 Comp. 585.
0
2. In Sec. 700.1, revise the second sentence in paragraph (c) to read
as follows:
Sec. 700.1 Purpose of this regulation.
* * * * *
(c) * * * The definition of ``national defense'' in section 702(14)
of the Defense Production Act provides that this term includes
``emergency preparedness activities'' conducted pursuant to Title VI of
the Stafford Act and ``critical infrastructure protection and
restoration.''
* * * * *
0
3. In Sec. 700.2, revise the last sentence in paragraph (a) and
paragraph (c) to read as follows:
[[Page 39528]]
Sec. 700.2 Introduction.
(a) * * * A complete list of currently approved programs is
provided at Schedule I to this part.
* * * * *
(c) Commerce has delegated authorities to place priority ratings on
contracts or orders necessary or appropriate to promote the national
defense to the government agencies that issue such contracts or orders.
Schedule I includes a list of agencies delegated this authority.
0
4. In Sec. 700.8, revise the definition of Approved Program to read as
follows:
Sec. 700.8 Definitions.
* * * * *
Approved program. A program determined as necessary or appropriate
for priorities and allocations support to promote the national defense
by the Secretary of Defense, the Secretary of Energy, or the Secretary
of Homeland Security, under the authority of the Defense Production
Act, the Stafford Act, and Executive Order 12919, or the Selective
Service Act and related statutes and Executive Order 12742.
* * * * *
0
5. In Sec. 700.10, revise paragraph (b) to read as follows:
Sec. 700.10 Delegation of authority.
* * * * *
(b) Within the Department of Commerce, these responsibilities have
been assigned to the Office of Strategic Industries and Economic
Security. The Department of Commerce has authorized the Delegate
Agencies to assign priority ratings to orders for items needed for
approved programs.
0
6. In Sec. 700.11, revise the first sentence in paragraph (c) to read
as follows:
Sec. 700.11 Priority ratings.
* * * * *
(c) Priority ratings. A priority rating consists of the rating
symbol--DO and DX--and the program identification symbol, such as A1,
C2, or N1. * * *
0
7. In Sec. 700.18, revise the second sentence in paragraph
(a)(2)(iv)(B) and paragraphs (b)(1) and (b)(2) to read as follows:
Sec. 700.18 Limitations on placing rated orders.
* * * * *
(2) * * *
(iv) * * *
(B) * * * [For information on requesting priority rating authority,
see Sec. 700.51.]
* * * * *
(b) Jurisdiction limitations. (1) The priorities and allocations
authority for certain items have been delegated under Executive Orders
12919 and 12742, other executive order, or Interagency Memoranda of
Understanding to other agencies. Unless otherwise agreed to by the
concerned agencies, the provisions of this part are not applicable to
these items which include:
(i) Food resources, food resource facilities, and the domestic
distribution of farm equipment and commercial fertilizer (Department of
Agriculture) (The Department of Agriculture and the Department of
Commerce have agreed that the Department of Defense may place rated
contracts and orders for food resources in support of troops, including
but not limited to, meals ready to eat (MREs), ``tray-packs'' (T-
rations), A-rations, and B-rations);
(ii) All forms of energy, including radioisotopes, stable isotopes,
source material, and special nuclear material produced in Government-
owned plants or facilities operated by or for the Department of Energy
(Department of Energy);
(iii) Health resources (Department of Health and Human Services);
(iv) All forms of civil transportation (Department of
Transportation);
(v) Water resources (Department of Defense/U.S. Army Corps of
Engineers); and
(vi) Communications services (National Communications System under
Executive Order 12472 of April 3, 1984).
(2) The jurisdiction of the Department of Commerce and the
Departments of Energy and Agriculture over certain specific items
included in the categories listed above has been clarified by
Interagency Memoranda of Understanding.
* * * * *
0
8. In Sec. 700.30, remove and reserve paragraph (b).
0
9. In Sec. 700.55, revise paragraph (b)(2) to read as follows:
Sec. 700.55 Assistance programs with Canada and other nations.
* * * * *
(b) * * *
(2) The Department of Commerce coordinates with the Canadian Public
Works and Government Services Canada on all matters of mutual concern
relating to the administration of this regulation.
* * * * *
0
10. In Sec. 700.60, revise the second sentence in paragraph (b) to
read as follows:
Sec. 700.60 General provisions.
* * * * *
(b) * * * Other official actions which pertain to compliance
(Administrative Subpoenas, Demands for Information, and Inspection
Authorizations) are discussed in Sec. 700.71(c).
0
11. In Sec. 700.72, revise paragraph (b) to read as follows:
Sec. 700.72 Compulsory process.
* * * * *
(b) Compulsory process may be sought in advance of an audit,
investigation, or other inquiry, if, in the judgment of the Director of
the Office of Strategic Industries and Economic Security, U.S.
Department of Commerce, in consultation with the Chief Counsel for
Industry and Security, U.S. Department of Commerce, there is reason to
believe that a person will refuse to permit an audit, investigation, or
other inquiry, or that other circumstances exist which make such
process desirable or necessary.
0
12. In Sec. 700.81, revise the last sentence in paragraph (b) to read
as follows:
Sec. 700.81 Appeals.
* * * * *
(b) * * * After this 45-day period, an appeal may be accepted at
the discretion of the Assistant Secretary for Export Administration for
good cause shown.
* * * * *
0
13. Revise Sec. 700.93 to read as follows:
Sec. 700.93 Communications.
All communications concerning this regulation, including requests
for copies of the regulation and explanatory information, requests for
guidance or clarification, and requests for adjustment or exception
shall be addressed to the Office of Strategic Industries and Economic
Security, Room 3876, U.S. Department of Commerce, Washington, DC 20230,
Ref: DPAS; telephone: (202) 482-3634 or fax: (202) 482-5650.
[[Page 39529]]
Schedule I to Part 700--Approved Programs and Delegate Agencies
* * * * *
0
14. In Schedule I to Part 700, add the heading ``Homeland security
programs'', revise N1, add N2-N8, and revise \1\ to read as follows:
---------------------------------------------------------------------------
\1\ Department of Defense includes: The Office of the Secretary
of Defense, the Military Departments, the Joint Staff, the Combatant
Commands, the Defense Agencies, the Defense Field Activities, all
other organizational entities in the Department of Defense, and, for
purposes of this regulation, the Central Intelligence Agency and the
National Aeronautics and Space Administration as Associated
Agencies.
------------------------------------------------------------------------
Program identification symbol Approved program Delegate agency
------------------------------------------------------------------------
* * * * * * *
Homeland security programs:
N1........................ Federal emergency Department of
preparedness, Homeland
mitigation, response, Security.
and recovery.
N2........................ State, local, tribal Do.
government emergency
preparedness,
mitigation, response,
and recovery.
N3........................ Intelligence and Do.
warning systems.
N4........................ Border and Do.
transportation
security.
N5........................ Domestic and counter- Do.
terrorism, including
law enforcement.
N6........................ Chemical, biological, Do.
radiological, and
nuclear
countermeasures.
N7........................ Critical Do.
infrastructure
protection and
restoration.
N8........................ Miscellaneous......... Do.
------------------------------------------------------------------------
* * * * *
0
15. Revise Appendix I to part 700 to read as follows:
Appendix I to Part 700--Form BIS-999--Request for Special Priorities
Assistance
BILLING CODE 3510-33-P
[[Page 39530]]
[GRAPHIC] [TIFF OMITTED] TR13JY06.000
[[Page 39531]]
[GRAPHIC] [TIFF OMITTED] TR13JY06.001
[[Page 39532]]
[GRAPHIC] [TIFF OMITTED] TR13JY06.002
[[Page 39533]]
[GRAPHIC] [TIFF OMITTED] TR13JY06.003
[[Page 39534]]
Dated: July 3, 2006.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 06-6123 Filed 7-12-06; 8:45 am]
BILLING CODE 3510-33-C