September 2008 – Federal Register Recent Federal Regulation Documents

The FDIC is adopting an interim rule to simplify and modernize its deposit insurance rules for revocable trust accounts. The FDIC's main goal in implementing these revisions is to make the rules easier to understand and apply, without decreasing coverage currently available for revocable trust account owners. The FDIC believes that the interim rule will result in faster deposit insurance determinations after depository institution closings and will help improve public confidence in the banking system. The interim rule eliminates the concept of qualifying beneficiaries. Also, for account owners with revocable trust accounts totaling no more than $500,000, coverage will be determined without regard to the beneficial interest of each beneficiary in the trust. Under the new rules, a trust account owner with up to five different beneficiaries named in all his or her revocable trust accounts at one FDIC-insured institution will be insured up to $100,000 per beneficiary. Revocable trust account owners with more than $500,000 and more than five different beneficiaries named in the trust(s) will be insured for the greater of either: $500,000 or the aggregate amount of all the beneficiaries' interests in the trust(s), limited to $100,000 per beneficiary.

This document adopts as a final rule, with some changes, interim amendments to title 19 of the Code of Federal Regulations which were published in the Federal Register on June 22, 2007, as CBP Dec. 07-43 to implement the duty-free provisions of the Haitian Hemispheric Opportunity through Partnership Encouragement (``HOPE I'') Act of 2006. The regulatory amendments adopted as a final rule in this document include changes necessitated by enactment of the Haitian Hemispheric Opportunity through Partnership Encouragement (``HOPE II'') Act of 2008.

This document delegates to the Assistant Secretary for Administration the authority vested in the Secretary of Agriculture under the National Agriculture Research, Extension, and Teaching Policy Act of 1977 to enter into cooperative agreements and under the Farm Security and Rural Investment Act of 2002 to implement programs for the Federal procurement and voluntary labeling of biobased products. It also rescinds the delegation of authority to the Chief Economist to implement the biobased procurement and voluntary labeling programs.

This rule identifies communities, where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP), that are scheduled for suspension on the effective dates listed within this rule because of noncompliance with the floodplain management requirements of the program. If the Federal Emergency Management Agency (FEMA) receives documentation proving the community has adopted the required floodplain management measures prior to the effective suspension date given in this rule, the suspension will not occur and a notice will be provided by publication in the Federal Register on a subsequent date.

The Department of the Treasury (``Treasury'') is issuing this proposed rule as part of its implementation of Title I of the Terrorism Risk Insurance Act of 2002 (``TRIA'' or ``the Act''), as amended by the Terrorism Risk Insurance Program Reauthorization Act of 2007 (``Reauthorization Act''). The Act established a temporary Terrorism Risk Insurance Program (``TRIP'' or ``Program'') under which the Federal Government would share with commercial property and casualty insurers the risk of insured losses from certified acts of terrorism. The Reauthorization Act has now extended the Program until December 31, 2014. This proposed rule is the latest in a series of regulations Treasury has issued to implement the Act. The proposed rule incorporates and implements statutory requirements in section 103(e) of the Act, as amended by the Reauthorization Act, for capping the annual liability for insured losses at $100 billion. In particular, the proposed rule describes how Treasury intends to determine the pro rata share of insured losses under the Program when insured losses would otherwise exceed the cap on annual liability. The rule builds upon previous rules issued by Treasury.

This notice of proposed rulemaking (NPRM) provides interested parties with the opportunity to comment on the Federal Transit Administration's (FTA's) proposed changes to its Bus Testing Regulation. The NPRM incorporates tests for brake performance and emissions into FTA's Bus Testing Program to comply with the Safe, Accountable, Flexible, Equitable Transportation Efficiency Act: a Legacy for Users (SAFETEA-LU). To improve the FTA Bus Testing Program, FTA is also proposing several updates that will enhance the Program's value and respond to changes in the transit bus industry. FTA seeks comments on the proposals in this notice.

The Coast Guard proposes to establish a permanent security zone in the vicinity of the Coast Guard Base in San Juan, Puerto Rico. The security zone is needed for national security reasons to protect the public and the Coast Guard base from potential subversive acts. The proposed rule would exclude entry into the security zone by all vessels and personnel without permission of the U.S. Coast Guard Captain of the Port San Juan.

This document informs owners and operators of facilities located within Captain of the Port Zones Honolulu, Prince William Sound, Southeast Alaska, and Western Alaska that they must implement access control procedures utilizing TWIC no later than February 12, 2009.

This document contains corrections to the final regulations, which were published in the Federal Register on November 9, 2006, 71 FR 65743. The regulations related to rules that apply to the operations and activities of providers of telecommunications services.

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) (collectively, the Agencies) are proposing to permit banks, bank holding companies, and savings associations (collectively, banking organizations) to reduce the amount of goodwill that a banking organization must deduct from tier 1 capital by the amount of any deferred tax liability associated with that goodwill. The proposed change would effectively reduce the amount of goodwill that a banking organization must deduct from tier 1 capital and would reflect a banking organization's maximum exposure to loss in the event that such goodwill is impaired or derecognized for financial reporting purposes.

On May 15, 2008, the Department of Homeland Security originally published the SORN and associated proposed rulemaking for the Maritime Awareness Global Network (MAGNET) (DHS/USCG-061) in the Federal Register. The Department of Homeland Security is issuing a final rule to amend its regulations to exempt portions of a new system of records entitled the ``United States Coast Guard's Maritime Awareness Global Network (MAGNET)'' from certain provisions of the Privacy Act. Specifically, the Department exempts portions of the MAGNET system from one or more provisions of the Privacy Act because of criminal, civil, and administrative enforcement requirements.

The Maritime Administration is issuing this final rule to implement provisions of the Energy Independence and Security Act of 2007 and amend the definition of a ``qualified vessel'' under the Capital Construction Fund. This rule is final because its underlying statutes leave no discretion; therefore, a notice of proposed rulemaking is not required.

DEA is withdrawing a proposed rule that was published in the Federal Register on September 24, 2007 (72 FR 54226) and is terminating the rulemaking. The proposed rule would have revised the DEA regulations with respect to the listing in schedule III of a synthetic isomer of tetrahydrocannabinols (THC) contained in a specific formulation of a drug product approved by the U.S. Food and Drug Administration (FDA). Specifically, the proposed rule would have revised the DEA regulation so that it would also include generic drug products approved by the FDA under section 505(j) of the Food, Drug, and Cosmetic Act (FDCA) (21 U.S.C. 355) that cite the drug product currently listed in schedule III as the reference listed drug. In view of the comments DEA received in response to the proposed rule, DEA has decidedin lieu of finalizing the proposed ruleto proceed with the process set out in 21 U.S.C. 811 for transferring each such generic drug individually to schedule III.

In this final rule, the Postal Service is revising mailing standards for all Bound Printed Matter (BPM). In March we filed a notice with the Postal Regulatory Commission for a classification change requiring all mailings of Bound Printed Matter be paid by permit only. The Commission agreed, and we are moving forward with the change. Postage payment for BPM mailings: carrier route, presorted, and nonpresorted (single-piece) flats and parcels, regardless of volume, are limited to permit imprint. Mailers can no longer affix postage by adhesive stamps, postage meter, or PC Postage[supreg]. BPM will not be accepted at retail counters, in collection boxes, or by carriers and must be deposited and accepted at the Post OfficeTM facility that issued the permit. Merchandise Return Service (MRS) permit holders may continue to pay nonpresorted BPM prices on eligible items returned with a MRS label.

This document cancels a public hearing on proposed regulations under section 7477 of the Internal Revenue Code (Code) regarding petitions filed with the United States Tax Court for declaratory judgments as to the valuation of gifts.

This document cancels a public hearing on proposed rulemaking providing guidance under Internal Revenue Code section 642(c) with regard to the Federal tax consequences of an ordering provision in a trust, a will, or a provision of local law that attempts to determine the tax character of the amounts paid to a charitable beneficiary of the trust or estate. The proposed regulations also make conforming amendments to the regulations under section 643(a)(5). The proposed regulations affect estates, charitable lead trusts (CLTs) and other trusts making payments or permanently setting aside amounts for a charitable purpose.

This document contains corrections to a notice of proposed rulemaking (REG-209006-89) that was published in the Federal Register on Wednesday, August 20, 2008 (73 FR 49278) under sections 367(a), 367(a)(5), 367(b), 1248(a), 1248(e), 1248(f), and 6038B of the Internal Revenue Code. The proposed regulations under sections 367(a)(5) and 367(b) apply when a domestic corporation transfers certain property to a foreign corporation in an exchange described in section 361(a) or (b). The proposed regulations under section 1248(e) suspend the application of section 1248(e) when capital gains are taxed at a rate equal to or greater than the rate at which ordinary income is taxed. The proposed regulations under section 1248(f) apply when a domestic corporation distributes stock of certain foreign corporations in a distribution to which section 337, 355, or 361 applies. The proposed regulations under section 1248(f) include regulations described in Notice 87-64 (1987-2 CB 375). The proposed regulations under section 6038B establish reporting requirements for certain transfers of property by a domestic corporation to a foreign corporation in certain exchanges described in section 361(a) or (b). Finally, the proposed regulations under section 367(a) include the regulations described in Notice 2008-10 (2008-3 IRB 277). The proposed regulations included in this document affect domestic corporations that transfer property to foreign corporations in certain transactions, or that distribute the stock of certain foreign corporations, and certain shareholders of such domestic corporations. The proposed regulations are necessary, in part, to provide guidance on changes to the law made by the Technical and Miscellaneous Revenue Act of 1988 (Pub. L. 100-647, 102 Stat. 3342).

The Atomic Energy Act of 1954, as amended, (AEA) requires the NRC to adjust the maximum total and annual standard deferred premiums specified in the Price-Anderson Act for inflation at least once during each 5-year period following August 20, 2003. The NRC is amending its regulations to satisfy this requirement.

This final rule amends the Dairy Promotion and Research Order (Order). The amendment modifies the composition of the National Dairy Promotion and Research Board (Dairy Board) by changing the number of members in six of the 13 geographic regions. The Dairy Board, which administers the Order, requested the amendment in order to better reflect the geographic distribution of milk production in the contiguous 48 States.

The Coast Guard is amending its regulations to allow the discharge of bulk dry cargo residue (DCR) in limited areas of the Great Lakes by self-propelled vessels and by any barge that is part of an integrated tug and barge unit. DCR is the residue of non-toxic and non- hazardous bulk dry cargo like limestone, iron ore, and coal. These regulations also add new recordkeeping and reporting requirements and encourage carriers to adopt voluntary control measures for reducing discharges. Discharges are now prohibited in certain protected and sensitive areas where, previously, they were allowed. The Coast Guard also requests public comments on the need for and feasibility of additional conditions that might be imposed on discharges in the future, such as mandatory use of control measures, or further adjustments to the areas where discharges are allowed or prohibited.

We are adopting a new airworthiness directive (AD) for the products listed above. This AD results from mandatory continuing airworthiness information (MCAI) issued by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as:

This action modifies Class D and E Airspace at Brunswick, ME. The Brunswick NAS Air Traffic Control Tower operates on an other than a full time basis; therefore, the Class D Airspace and its extensions associated with the tower operations must be modified to reflect the times when the controlled airspace is effective. This action enhances the National Airspace System by relaxing the restrictions to the controlled airspace areas in the vicinity of Brunswick, ME.

This action proposes to amend Class E airspace at Big Spring McMahon Wrinkle Airport, Big Spring, TX. Additional controlled airspace is necessary to accommodate changes to the VOR/DME RWY 17 Standard Instrument Approach Procedure (SIAP) at Big Spring McMahon-Wrinkle Airport, Big Spring, TX. The FAA is taking this action to enhance the safety and management of Instrument Flight Rules (IFR) aircraft operations at Big Spring McMahon-Wrinkle Airport.

This action amends Class E Airspace at Butler, PA to merge the existing Class E Airspace listed under East Butler, PA, which will be removed. The protected airspace that was developed for an Area Navigation (RNAV) Global Positioning System (GPS) Special Instrument Approach Procedure (lAP) for medical flight operations into Butler Memorial Hospital Heliport, PA was erroneously listed under East Butler, PA. This action corrects that mistake by listing all applicable airspace under the correct location of Butler, PA. Additionally, this action imparts a technical amendment by correctly listing the Butler County Airport as Butler Co./K W Scholter Field Airport.

The FAA is superseding an existing airworthiness directive (AD), which applies to certain Fokker Model F.28 Mark 0070 and 0100 airplanes. That AD currently requires a one-time inspection of the main landing gear (MLG) main fitting for cracks, and repair if necessary. The existing AD also currently requires installing a placard and revising the airplane flight manual to include procedures to prohibit the application of brakes during backward movement of the airplane. This new AD requires repetitive eddy current inspections of the MLG main fitting and rework before further flight as applicable. This AD results from reports that a final solution eliminating the cause of the crack initiation mechanism is not yet available and that repetitive inspections are necessary. We are issuing this AD to detect and correct cracks in the MLG main fitting, which could result in reduced structural integrity of the MLG main fitting.