ML20210F650
| ML20210F650 | |
| Person / Time | |
|---|---|
| Issue date: | 05/16/1997 |
| From: | Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM) |
| To: | Talent J HOUSE OF REP. |
| Shared Package | |
| ML20141H836 | List: |
| References | |
| NUDOCS 9705270127 | |
| Download: ML20210F650 (9) | |
Text
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UNITED STATES j
N-UCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 30688-0001
+,.....,
May 16, 1997 CHARMAN The Honorable James M. Talent, Chairman Committee on Small Business United States House of Representatives Washington, D.C.
20515
Dear Mr. Chairman:
I am responding to your letter of April 10, 1997, in which you requested information on the Nuclear Regulatory Commission's (NRC) implementation of Section 610 of the Regulatory Flexibility Act concerning the periodic review of all agency regulations that have a significant economic impact on a substantial number of small entities.
l A significant portion of the NRC's regulations do not affect small entities because a large part of the NRC's regulatory efforts to protect the public health and sa.fety is directtd to licensees who are not small entities. The NRC regulations that do affect small entities are directed toward our i
materials licensees. Of tnesa, only the annual NRC fee rule has been determined to have a direct significant economic effect on a substantial number of small entities. Under this rule, the NRC fulfills a statutory mandate to recover approximately 100 percent of its operating budget through the assessment of fees. This rule is promulgated annually through notice and comment rulemaking.
In support of this rulemaking, the NRC performs an initial and final regulatory flexibility analysis for this rule each year, in compliance with Section 610 of the Act. The documentation of these analyses is contained in the enclosed appendices to the FY 1996 proposed and final rule.
In addition, since 1992, the NRC has taken a number of actions to improve its regulatory and licensing processes and reduce the burden placed on all its i
licensees. These actions have reduced the impact of NRC's regulatory and licensing activities on small entities.
In compliance with Phase II of the National Performance Review (NPR),
the NRC conducted a rule-by-rule review of 10 CFR Chapter I.
This review identified regulations that were obsolete, unnecessarily burdensome, too prescriptive, or that overlapped or duplicated regulations of another federal agency.
.In 1993, the NRC established the Regulatory Review Group to conduct a broad reexamination of regulations and related processes, programs, and practices. Although this review was primarily directed to regulations governing power reictors, not small entities, initiatives from this group reduced reguiatory burdens and improved regulatory processes for all licensees, including small entities.
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In 1993, the NRC conducted a survey to update the economic profile of i
its materials licensees. The purpose of this survey was to evaluate the continued efficacy of NRC's~ size standards and to obtain information needed to consider regulatory' alternatives tailored to the size of the licensee.
On April 11, 1995 (60 FR 18344), the NRC amended the size standards it uses to qualify an NRC licensee as a "small entity" under the Regulatory l
3 Flexibility Act. This rule increased by 9 percent the number of
~
g licensees that would qualify as small entities. The annual fee rules i
-have been modified to address the new definition of "small entity" and j.
to provide special fee treatment for small entities who request it.
'In 1993, the NRC began a survey designed to elicit the views of NRC materials licensees regarding the impact of NRC regulatory activities on their operations. The survey addressed topics related to NRC i
regulations, policies and regulatory guidance, the licensing process, the inspection process, reporting requirements,.and enforcement processes. The survey served organizational needs in targeting areas for assessment and identified specific areas for change. The results of the survey were used to formulate' proposals in both NPR and licensing streamlining' efforts.
The' NRC is implementing a fundamental redesign and streamlining of the materials licensing process. This is the culmination of the Business Process Redesign Project, begun in September 1994, that analyzed the materials licensing process to establish a more efficient and potentially automated processing of materials licensing and amendment a
requests.
The redesigned process is intended to speed the licensing process and improve communications between the NRC and its materials licensees.
It may serve to reduce some of the licensing burdens on materials licensees, including small entities.
In 1996, the NRC reviewed the process used to grant exemptions to regulations with an emphasis on identifying recurring exemptions and ensuring consistency and objectivity in.the exemption process. The NRC also implemented a process to identify rulemaking actions that have the potential to reduce the need for future exemptions, thereby relieving compliance and administrative burdens on its licensees, including small entities.
As a result of the NRC's Strategic Assessment and Rebaselining efforts, the Commission has directed the NRC staff to establish an agency-wide senior mee.agement review group that will examine NRC processes and activities on a continuing basis and make recommendations on methods and
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approaches to enhance regulatory effectiveness. The work of the review group will include assessments of NRC's regulatory effectiveness with regard to licensees who are small entities.
I trust that this responds to your request.
Sincerely, h
Enclosures:
Appendices to FY 1996 proposed an$ final fee rule I
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2966 Federal Register / Vol. fit. No. 20 / Tuesday, January 30, 1996 / Proposed Rules reactors and certain materials licensees For the Nuclear Regulatory Commission.
established for those manufacturing i
to recover the full amount of the revised f ames M. Taylor, industries with less than 35 employees. The P
hm Id of "i tjase cnnual fee.'If the amounts collected in Executhe Directorfor Operations.
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9 ws th) first three quarters exceed the Appendix A to this Proposed Rule approximately the same percentage amount of the revised annual fee, the g,,,i e.,y Flexibility Analysis for the adjustment as that made by the SBA when cverpayment will be refunded. The NRC Amendments to 10 CFR Part 170 (1.loanse they adjusted the receipts. based standard will refund any " flat" materials renewal Fees) and to CFR Part 173 (Annual Fees) from $,.5 million to $5 million. The NRC Wieves that the proposal to continue these j
fees payments received for renewal
- 1. B und-actions wald reduce the impact of annual cPP cations filed in FY 1990' as The Regulatory Flexibility Act of 1980 (5 fees on small businesses in FY 1996. The li e ppropriate. All other licensees, or U.S.C 601 et seq.) establishes as a principle NRC size standards are codified at 10 CFR holders of a certificate, registration, or of regulatory practice that agencies endeavor 2.s10.
i cpproval of a QA' program will be sent to fit regulatory and informational Pub. L 101-508, the Omnibus Budget a bill for the full amount of the annual requirements, consistent with applicable Remnciliation Act of1990(OBRA-90),
'1 statute to a scale mmmensurate with the requires that the NRC recover approximately fee upon publication of the final rule or on the anniversary date oIthe Iicense.
businesses, organizations, and government 100 percent of its budget authority, less 1
appropriadons from the Nuclear Waste Fund, Payment is due on the invoice date and jurisdictions to which they appl (. To achieve for Fiscal Years (vY) 1991 through 1995 by this principle, the Act requires t at agencies interest accrues from the date of the consider the impact of their actions on small assessing license and annual fees. OBRA-90 invoice. However, interest will be entities. If the agency cannot certify that a was amended in 1993 to extend the 100 waived if payment is teceived within 30 rule will not significantly' impact a percent recovery requirement for NRC days from the invoice date.
substantial number of small entitles.then a through 1998. For FY 1991, the amount for J
regulatory flexibility analysis is required to cx>llection was approximately $445.3 million; (c) For FYs 1996 through 1998, annual examine the impacts on small entities and for W 1992, approximately $492.5 million; for FY 1993 about $518.9 m!!! ion; for FY fees in the amount of $100,000 or more the alternatives to minimize these impacts, 1994 about $513 million; for FY 1995 about cnd described in the Federal Register To assist in considering these impacts
$503.6 million and the amount to be notice pursuant to 5171.13 must be paid under the Regulatory Flexibility Act (RFA),
colt ed in FY 1996 is appmalmately $462.3 in quarterly installments of 25 percent first the NRC adopted size standards for g
as billed by the NRC The quarters begin $$,"d"$'hNRCjl To comply with Of,RA-90, the I
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Commission amended its fee regulations in on October 1. January 1, April 1, and 1985). Thm size standards were clarified to CFR parts 170 and 171 in FY 1991 (56 FR July 1 of each fiscal year.
November 6.1991 (56 FR 56672). On April
.h57 I
(d) For FYs 1996 through 1998, 7,1994 (59 FR 16513), the Small Business py g FR Administration (SBA) issued a final rule 38666, July 20,1993)in FY 1994 (59 FR annual fees ofless than $100,000 must be paid as billed by the NRC Beginning
" hit ifts I
36895, July 20,1994) and in FY 1995 (60 FR s stan ards 32218, kne 20,1H54ased on a careful in FY 1996, materials license annual levels to mitigate the effects of inflation from fees that are less than $100,000 will be 1964 to 1994. On November 30.1994 (59 FR g,,
h th th $1 sed billed on the anniversary of the license. 61293),the NRC published a proposed rule by NRC la identify'ng and determining the The matedals licensees that would be to amend its size standarr5 After evaluating fees aJoessed and collected in FYs 1991-the two comments received, a final rule that billed on the anniversary date of the 1995.
w uld revise the NRC's size standards as The NRC indicated in the FY 1995 final license are those covered by fee de 0 a
that would atte t to stabil ze nual l
categories 1.C and 1.D.; 2.A.(2) through [Pgd pmgd by s o
,,e 4 p95 2.C; 3.A. through 3.P.; 4.B. through published the final rule revising its siz*
woul$ adjusEt nnualfees only by the 9.D.; and 10.B. For annual fee purposes, staadards on April 11,1995 (60 FR 18344).
percentage change (plus or minus) in NRC's the anniversary date of the license is The revised standards became effective MaY total budget authority unless there was a considered to be the first day of the 11,1995. The revised standards adjusted the substantial change in the total NRC budget NRC receipts-based size standards from $3.5 authority or the magnitude of the budget m: nth in which the original license was inn a t s5 mnon to acmmmodate allocated to a specific class of licensees, in issued b the NRC Durin8 the transition inflation and to conform to the SBA final which case the annual fee base would be Y
year of FY 1996, licensees with license rule. The NRC also eliminated the separate recalculated (60 FR 32225, June 20,1995).
anniversary dates falh,ng between 31 million size standard for private practice The NRC also indicated that the percentage October 1 and the effective date of the physicians and applied a remipto-based size change would be adjusted based on changes FY 1996 final rule wou'd receive an standard of $5 milh'on to this class of in the to CFR part 170 fees and other receipts liansees.This mirrored the revised SBA as well as an adjustment for the number of an7ual fee bill payable on the effective standard f $5 rnnon fw mdical licensees paying the fees. As a result, the date of the final rule, and licensees with practitioners. The NRC also established a size NRC is pro $nsees be established at 6.4ing that th h.eense anniversary dates that fall on or standard of 500 or fewer employees for fees for all after the effective date of the final mie business concerns that are manufacturing percent below the FY 1995 annual fees. The would be billed on the anniversary of entitia. This standard is the most commonly NRC believes that the proposed 6.4 percent their license. Starting with the effective used SBA employee standard and is the downward ed}ustment to the FY 1995 annual date of the FY 1996 final rule, licensees standard applicable to the types of fees is not a substantial enough change to manufacturing industries that hold an NRC warrant establishing a new base,line for FY that are billed on the license license.
1996. Therefore, the NRC is roposing to annivarsary date would.be assessed the The NRC used the revised standards in the establish the FY 1996 annua fees for all annual fee in effect on the anniversary final FY 1995 fee rule and proposes to licensees at a level of about 6 perant be'ow date of the license, continue their use in this FY 1996 proposed the FY 1995 fees.
rule. The srnali entity fu categwin in The NRC is also proposing to continue the Deted at Rockville* MD, this 19th day of 5171.16(c) of this proposed rule svilect the. streamliningof the fee structure and process jarmary,1996.
changes in the NRC's size standards adopted for materials licenses which began in FY in FY 1995. A new maximum small entity fee 1995. Two changes are being proposed in this for gnanufacturing industries with 35 to 500
- area, employees was establiebed at S1,000 and a First.the NRC is proposinF to assess lower-tier sn.all entity fee of $400 was annual fees for certain materials licen;es on
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h.3 Fedml Registrr / Vol. 61. No. 20 / Tursday, January 30, 1996 / Propoud Rules 2927 the anniversary date of the limnse. Billing much larger mmpetitors because the
--Base fees on the frequency of use of the
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certain matedals limnses on the anniversary pmposed fees would be the same for a two-licensed radioactive material (e.g., volume date of the license would allow NRC to make person llansee as for a larBe firm with of patients).
Improved efficiencies in the billing promes thousands of employees.
--Base fees on the NRC size standards for whereby appmmimately 500 annual fee
--Some firrns would be forood to cancel their small entities.
involms would be sent to materials licensees licenses. One commenter, with receipts of The NRC has reexamined the FY 1991-each month. 'llie cunent practice of billing less than $500,000 per year, stated that the 1995 evaluations of these alternatives. Based j
over 6,000 materials limnsees at the same pmposed rule would, in effect, form it to on that reexamination, the NRC continues to time in the fiscal year would be eliminated.
relinquish its soll density gauge and believe that establishment of a maximum fee The NRC believes that the efficiencies gained license, thereby reducing its ability to do for small entities is the most appropdate by billi certain materials annual fees on a its work effectively. Another commenter option to reduce the impact on small entitles, j
d monthly is as well as materials licensees noted that the rule would force the The NRCestablished, and is continuin8 or f
bowing exadly when they will be billed company and many other small businesses FY 1996, a maximum annual fee for small 4
4 each year for the annual fee outweigh the to get rid of the materials license inconveniences that may be caused during altogether. Commenters etated that the entitles. He RFA and its imp 1ementing -
the FY 1996 transition period.
proposed rule would result in about 10 gu dan o
de s es I8 Semnd, the NRC is proposing to further
' percent of the well-legging licensees
. impact on a small entity. Therefore, the Ni'.C streamline the materials fee ffees by regram and terminating their licenses immediately and improve the predictability o approximately 25 percent terminating their has no benchmark to assist it in determining i
j eliminating the materials " flat" anewal fees licenses before the next annual assessment. the amount or the percent of gross receipts in $ 170.31.This proposed action is
-Some compenles would go out of business. that shoubl be charBed to a small entity. For cansistent with the NRC's recent Business One mmmenter noted that the proposal FY 1996, the NRC will rely on the analysis i
Promss Reengineering initiative to extend the would put it, and several other small Previously completed that established a 1
duration of certain materials licenses. The companies, out of business or, at the very maximum annual fee for a small entity and l
NRC published a proposed rule in the least, make it hard to survive.
the amount of costs that must be recovered Federal Register on September 8,1995,
-Some companies would have budget from other NRC limnsees as a result of a
explaining this initiative (60 FR 46784). In problems. Many medical limnsees establishing the maximum annual fees.
the pro rule, certain materials limnses commented that, in these times of slashed he NRC mntinues to believe that the to would extended for five years Leyond reimbursements, the pmposed increase of CFR part 170 license fees (application and their expiration date. Additionally, the existing fees and the introduction of amendment), or any adjustments to these comments were requested on the general additional fees would significantly affect licensing fees during the past year, do not topic of the appropriate duration oflicenset their budgets. Another noted that,in view have a significant im on small entities. In A final rule was published in the Federal of the cuts by Medicam and other third issuing this pro rule for FY 1996, the Register on January 16,1996 (61 FR 1109).
carriers, the fees would pmduce a NRC mncludes that the 10 CFR part 170 hip and some facilities would materials limnse fees do not have a E I'* Pad en Small Ennties experience a great deal of difficulty in significant impact on a substantial number of J
The mmments remived on the proposed meeting this additional burden.
small entities and that the to CFR part 171 FY 1991-1995 fee rule revisions and the Over the past five years, appmximately maxirnum annual small entity fee of $1,800 i
small entity certifications reonived in 2,900 license, appmval, and registradon be continued.
response to the final FY 1991-1995 fee rules terminations have been requested. Although By maintaining the maximum annual fee indicate that NRC licensees qualifying as some of these terminations were requested for small entities at $1,800, the annual fee for small entities under the NRC's size standards because the license was no longer needed or many small entities is redumd while at the am primarily those licensed under the NRC's licenses or registrations could be combined, same Ume materials licensees, including materials program. Therefore, this analysis indications are that other termination small entities, pay for moat of the FY 1996 will focus on the economic impact of the requests were due to the economic impact of costs attributable to them. The costs not annual fees on materials limnsees.
the fees.
recovered from small entities are a!!ocated to The Commission's fee regulations result in The NRC continues to receive written and other materials licensees and to operating substantial fees being charged to those oral mmments from small materials power reactors. However, the amount that individuals, organizations, and companies licensees. These commenters previously must be recovered imm other licensees as a that are licensed under the NRC materials indicated that the 83.5 million threshold for result of maintaining the maximum annual pmgram. Of these materials licensees, about small entities was not representative of small fee is not expected to increase. Therefore, the 18 percent (approximately 1,300 licensees) businesses with gross receipts in the NRC is continuing.for FY 1996, the have requested small entity certification in thousands of dollars. These mmmetters maximum encual fee (base annual fee plus the past. In FY 1993, the NRC conducted a believe that the 51,800 maximum annual fee surcharEe) for certain small entitles at $1,800 survey of its materials licensees. The results represents a relatively high percentage of for each fee category covered by each license of this survey indicated that about 25 percent gross annual reasipts for these " Mom and lasued to a small entity.
of these limasees could qualify as small Pop t businesses. Therefore, even the While reducing the impact on many small entities under the current NRC size redu annual fee could have a signifiant entities, the Commission agrees that the standards.
impact on the ability of these types of maximum annual fee of 31,800 for small
'the com:nenters on the FY 1991-1994 businesses to matinue to operate.
entitles, when added to the part 170 license proposed fee rules indicated the following To alleviate the continuing significant fees, may continue to have a significant results if the proposed annual fees were not impact of the annual fees on a substantial impact on materials licensees with annual modified:
number of small entities, the NRC considered gross remipts in the thousands of dollars.
-Large firms would gain an unfair alternatives, in acx:ordance with the RFA.
Therefore, as in FY 1992-1995, the NRC is competitive advantage over small entities.
These alternatives were evaluated in the FY continuing the lower. tier small entity annual One commenter noted that a small well.
1991 rule (56 FR 31472, July 10,1991) in the fee of $400 for small entities with relatively logging company (a " Mom and Pop" type FY 1992 rule (57 FR 32691, July 23,1992),
low gross annual receipts. The lower-tier of operation) would find it difficult to in the FY 1993 rule (58 FR 38666, July 20, small entity fee of $400 also applies to absorb the annual fee, while a large 1993); in the FY 1998 rule (59 FR 36895, July manufacturing concerns, and educational corporation woubi find it easier. Another 20,1994) and in the FY 1995 rule (60 FR institutions not State or publicly supported, commenter noted that the fee increase 32218 June 20,1995). The alternatives with less than 35 employees. This lower. tier could be more easily absorbed by a high.
considered by the NRC can be summarized small entity fee was first established in the volume nuclear medicine clinic. A gauge as follows.
final rule published in the Federal Register licensee noted that,in the very competitive ~ Base fees on some measure of the amount on April 17,1992 (57 FR 13625) and now soils testing market, the annual fees would of radioactivity possessed by the licensee includes manufacturing companies with a put it at an extreme disadvantage with its (e.g., number of sources).
relatively small number of employees.
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2963 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules HI, S====ry to William W. Wiles, Secretary, Board of 1988, require creditors to give Govemors of the Federal Reserve consumers extensive disclosures and an j
%e NRC has determined the to CPR pan System 20th Street and Constitution educational brochure for home+quity 171 annual fees significantly impacts a substantial number of small entitles. A Avenue NW., Washington, DC 20551.
plans at the time an application is
== Imam fee for small entitles strikes a Comments also may be delivered to provided. For example, cmditors must belance between the requirement to collect Room B-2222 of the E les Building provide information about payment 1
100 p ucent of the NRCbudget and the between 8:45 a.m. and 5:15 p.m.
terms, fees imposed under the plans, j
f
t to consider means of reducing weekdays, or to the guard station in the and, for variable-rate plans, information the impact of the fee on small entities. On the Eccles Building (murtyard on 20th Street about the index used to determine the j
basis ofits latory Sexibility analyses, the NW,(between Constitution Avenue and rate and a fifteen-year history of changes C Street) at any time. Comments may be in the index values. In addition, the law I"
l of 1, sma1 tities nd a tier l
small entity annual fee of $400 for small inspected in Room MP-500 of the imposes certain substantive limitations budnesses and not-for-pmnt organisations Martin Building between 9:00 a.m. and on home-equity plans, such as limiting
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with gross annual receipts of less than 5:00 p.m. weekdays, except as provided the right of creditors to terminate a plan g350,000, sanall governmental jurisdictions in 12 CFR 261.8 of the Board's rules and accelerate an outstanding balance or j
- with a population ofless than 20,000, small regarding the availability ofinformation. to change the terms of a plan aAer it has been o ned.
maIufacturing entitles that have less than 35 Foft PURDER stF0funATioN CONTACT:
employees and educationallastitutions that. Obrea Poindexter Staff Attorney
- Part 226) implements the Truth in De
's Regulation Z (12 CFR are not state or publicly supported and have Division of Consumer and Community Pect Affairs. Board ofGovemors of the landing Act.
lation Z requirements forhome-equity ines of aedi closely on smal t les. A the same tinw,these reduced annual feas are consistent with the Federal Reserve System, at (202) 452-mirror the statutory requirements. As i
objectives of OBRA-90. Thus, the smised 3667 or 452-2412. For users of fees for small entities maintain a balance Telecommunications Device for the Deaf the statute sets forth specific requirements that are restrictive in between the objectives of OBRA-40 and the (TDD), please contact Dorothea rnany cases, the rules implementing the 4
RFA. Therefore, the analysis and conclusions Thompson at (202) 452-3544.
statute are similarly restrictive.
i established la the FY 1991-1995 rules remain valid for this proposed rule for FY SUPPUBENTAM WIP0034ATION:
S fic rules on home-equity lines of it are contained in Regulation Z, tus.
I. Background j
IFR Doc. 96-1524 Filed 1-29-96; 8:45 aml he Home Ownership and Equity 26.
d 'a r d i M8" 088 "#
Protection Act (HOEPA) amendments to commentary, Requirements for home-(
the Truth in landing Act, contained in equi'y lines of credit apply to all open-the Riegle Community Development and and credit lans secured b a l
FEDERAL RESERVE SYSTEM Regulatory improvement Act of 1994 consumer's dwelling. The rules require (RCDRIA) require special disclosures cred tors offering home+quity plans i
12 CFR Part 226 and impose substantive limitations on (and third-parties in some instances) to l
certain closed-end home+quity loans give specific disclosures about costs and Plogulation Z; Dootiet No. R 0013) with rates or fees above a certain terms and limits how creditors may l
Truth in Landing percentage or amount. The requirements structure programs, and prohibitions contained in the
- m. Bwd oNomnon of ee HOEPA,which became effective in Format and Timing ofDisclosures Fedeml Rosene Systern.
October 1995, do not apply to open-end in most cases, at the time a consumer ACTION: Request for comments.
home-secured lines of credit.The is provided with an application for a legislative history notes that home-secured line of credit, disclosures sutensAm:The Board is soliciting congressional hearings on home-equity mus; be given. These disclosures must comment on whether the Truth in landing practices revealed little be in writing, grouped together, and landing Act cost disclosure and other evidence of abusive practices in the segregated from allunrelated rules for open-end home-secured lines nend homesquity credit market.
Information. Each consumer must also ge legislative history also states that, if be given an educational pamphlet cf credit provide ad unto consumer.
ocuans.The Ri e Community the market changes or if the Board finds prepared by the Board entitled"When lopment and Regulatory that open-end credit plans are being Your Home is On the Line: What You
--t Act of 1994 directs the used to circumvent the HOEPA, the Should Know About Home Equity Lines Imbwto submit a report to the Congress Board has the authority to addreas of Credit " or a similar substitute.
Bo law.cr3this matter. Under presentors ofre,ing pen-end home.
HOEPA.
must be given in writin before the first regardi 6= s =nder aection 252(a) of the Prosram-specific initiai disciosures
{ithendin8P
{have to provide in addition,the RCDRIA directs the transaction is made un erthe plan.
l disclcs t
Content ofDisclosures consumer applies for a line of credit.
t C
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Th3 law also imposes specific recommendations for legislation, on Creditors offering home-equity plans substantive limitations on how these whether existing rules for open,end snust provide information to consumers programs may be structured; however home-equity lending regrams provide that is requimd under section 226.5b of the am not subject to the type of consumers obtaining ome equity lines the regulation.This includes, but is not IC s
b gg
"_g of credit with adequate pro %ctions, 11 i to,se folio g:
p 1994 for closed-end credit.
H. Carrent Roles for Home-Equity Lines length of t e draw and any apayment DATas: Comments must be received on ofCredit period,an explanation of how the cr before April 1,1996.
The Home Equity Iman Consumer minimum periodic payment will be Aconesses: Comments should refer to Protection Act amendments to the Truth determined and the timing of payments, Docket No. R-0913, and may be mailed in Lending Act, enacted in November and an example based on a $10,000
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- 16224 FedIral Registir / Vol. 61, No. 72 / Friday, April 12, 1996 / Rules and Regulttlons Payment is due on the invoice date and agency cannot certify that a rule will not the receipts-based standard from $3.5 1
interest accrues from the date of the significantly impact a substantial million to $5 million. The NRC believes j
lavolos. However, interest will be number of small entities, then a that continuing these actions for FY l
waived if payment is received within 30 regulatory flexibility analysis is required 1996 will redum the impact of annual days from the invoim date, to examine the impacts on small entities bs on small businesses. The NRC size (c) For FYs 1996 through 1998, annual and the alternatives to minimize these standards are codified at to CFR 2.810.
l fees in the amount c.f 3100,000 or more impacts.
Public Law 101-508, the Omnibus and described in the Federal Register To assist in considering these impacts Budget Reconciliation'Act of 1m notice pursuant to $ 171.13 must be paid under the Regulatory Flexibility Act (OBRA-90), requires that the NRC 1
in quarterly installments of 25 percent (RFA), Srst the NRC adopted size recover approximately 100 percent ofits 3
as billed by the NRC The quarters begin standards for determining which NRC budget authority, less appropriations on October 1. January 1. A licensees qualify as small entitles (50 FR from the Nuclear Waste Fund, for Fiscal July)1 of each Escal year, pril1, and 1
50241; December 9,1985). These size i
(d For FYs 1996 through 1998, standards were clarined November 6, Years (FY)1991 through 1995 by
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annual fees ofless than $100,000 must 1991 (56 FR 56672). On April 7,1994 OBRA-90 was amended in 1993 to assessing license and annual bs.
be paid as billed by the NRC Beginning (59 FR 16513), the Small Business e
in FY 1996, materials limnse annual Administration (SBA) issued a Snal rule extend the 100 percent romvery j
fees that are less than 3100,000 will be changing its size standards. De SBA requiremant for NRC through 1998. For billed on the anniversary of the license. adjusted its receipts-based size FY 1991, iho amount for collection was The materials licensees that will be standards levels to mitigate the effects of approximately $445.3 million; for FY j
billed on the anniversary date of the inflation from 1984 to 1994. On 1992, approximately $492.5 million; for t
limase are those covered by fee November 30,1994 (59 FR 61293), the FY 1993 about $518.9 million; for FY j
categories 1.C and 1.D.; 2.A.(2) through NRC published a proposed rule to 1994 about $513 million; for FY 1995 2.C; 3.A. through 3.P.; 4.B. through amend its size standards. After about $503.6 million and the amount to j
9.D.: and 10.B. For annual fee purposes, evaluating the two comments remived, be collected in FY 1996 is l
the anniv date of the license is a Baal rule that would revise the NRC's approximately $462.3 million.
i considered to the first day of the size standards as proposed was To comply with OBRA-90' the i
month in which the original license was developed and approved by the SBA on
- 8
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issued by the NRC During the transition March 24,1995. The NRC published the 0
Parts 0 171 h FY l
year of FY 1996, licensees with license Anal rule revising its size standards on (56 FR 31472;)ul 10* 1991)in FY 1992*
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anniversary dates falling between April 11,1995 (60 FR 18344). The 32% Juh 23, W in W m3 1
October 1,1995, and the effective date i
of the FY 1996 Saal rule will receive an revised standards became effective May (58 m 38666 duly 20, m3Hn W 11,1995. De revised standards (59 FR 36895;)uly 20,1994) and in FY i
annual fee bill yable on the effective adjusted the NRC recel ts-based size 25 (60 R 322183une 20, m5) based 1
date of the fina rule,and licensees with standards from $3.5 miflion to 55 n a camful evaluatmn of om 1.m i
license anniversary dates that fall on or million to accommodate inflation and to comments. These final rules established i
after the effective date of the final rule conform to the SBA final rule. The NRC the methodology used by NRCin i
will be billed on the anniversary of their also eliminated the separate $1 million identifying med determining the fees license. Starting with the effective date size standard for private practice assessed and collected in FYs 1991-of the FY 1996 final rule, licensees that physicians and applied a receipts-based M5.
2 am billed on the license anniversary size standard of 85 million to this class The NRCindicated in the FY 1995 i
date will be assessed the annual fee in of licensees. his mirrored the revised final rule that it would attempt to i
effect on the anniversary date of the SBA standard of 85 million for medical stabilize annual bs as follows.
I
- license, practitioners. The NRC also established Beginning in FY 1996,it wo'dd adjust De at ville. Maryland, this 25th day stan o
orle r s
i us N
tota For the Nuclear Regulatory Commission.
am 8
I*""' "*F *
standard the m0st c o
used su t ye the tot 1 N I
SBAjapplicable to the tloyee standard and is the budget authority or the itude of the j
hemuwawroMauons.
of budge' allocated to a speci c class of Appendix A to This Final Enle mann8-urin =
old an licensma,in which oase the annual b Regulatory Fl=ribility Analysis For the NRC license. " industries th base would be recalculated (60 FR ammedmamse to 39 CR Part 179 The NRC used the revised standards 32225; June 20,1995).The NRC also (License Feca) and to CFR Part 171 in the final FV 1995 fee rule and is using indiated that the percentage change (Annual Fees) them in this I t 1996 final rule. %e would be adjusted based on changes in small enti fee categories in $ 171.16(c) the to CFR Part 170 fees and other L Background of this rule reflect the changes in receipts as well as an adjustment for the The Regulatory Flexibility Act of 1980 the NRC's size standards adopted in Fy number oflicenseos paying the bs. As (5 U.S.C 601 et seq.) establishes as a 1995. A new mavimum small entity f,,
a result, the NRC is establishing the FY principle of regulatory practice that for manufacturing industries with 35 to 1996 annual fees for all licenases at 6.5 agenci== endeavor to St segulatory and 500 employees was established at Percent below the FY 1995 annual fees.
Informational requirements, consistent 31,800 and a lower-tier small entity b he NRC believes that the 6.5 percent with appliable statutes, to a sale of 3400 was established for those downward adjustment to the FY 1995 i
commensurate with the businesses, manufacturing industries with less than annual fees is not a substantial enough organizations, and government 35 employees. The lower-tier receipts.
change to warrant establishing a new jurisdictions to which they apply. To based threshold of $250,000 was raised baseline for FY 1996.
achieve this principle, the Act requires to $350,000 to re.Dect approximately the The NRC is also continuing to that agencies consider the impact of same percentage edjustment as that streamline the fee structure and process their actions on small entities. If the made by the SBA when they adjusted for materials licenses, efforts which i
(
Federal Register / Vol. 61. No. 72 / Friday, April 12, 1996 / Rules and Regulations 16225-began in FY 1995.Two changes are liceraees could qualify as small entitles or registrations could be combined,
=
being made in this wea.
under the current NRC size standards.
indications are that other termination First, the NRC will assess annual fees The commenters on the FY 1991-requests were due to the economic for certain materials licenses on the 1994 pmposed fee rules indicated the irpact of the fees.
anniversary date of the license. Billing foUowing results if the proposed annual
'Tae NRC continues to remive written certain materials licenses on the be were not modified and oral comments from small materials anniversary date of the license will
-large firms would gain an unfair licensees. These commenters previously allow NRC to make improved competitive advanta8e over small indicated that the $3.5 million threshold infBciencies in the billing pmmes entities. One commenter noted that a is small entities was not representative whereby appmximately 500 annual fee small well-logging company (a " Mom of small businesses with gess receipts invoices will be sent to materials ofo in the thousands of dollars.'inese and Pop" tbt to abration) would licensees each month.ne current End it difB the annual commenters believe that the 31,800 (metice of billing over 6,000 materials fee, while a large corporation would maximum annual fee apresents a
- at the same time in the fiscal find it easier, Another commenter relatively high percentage of gross a--
yearis elimisted.%e NEC believes noted that the fee increase could be annual remipts fw these " Mom ed i
that the ofBciencies gained by billing more easily ahorbed by a high.
Pop"t businesses.Wrefore, even certain nWerials annual fees on a volume nuclear medicine clinic. A the uced annual fee could have a monthly basis as well as materials gauge licensee nated that,in the very signiacant impact on the ability of these licensees kn exactly whon they mmpetitive soils tesung market,the types of businesses to continue to will be billed year for the annual annual fees would put it at an extreme Operate.
To alleviate the continuing sign 1 Scant fee outweigh the inconveniences that disadvan "8' with its much '#Ur impact of the annual fees on a may be caused during the FY 1996 o in[be the same is a tw&persont rs because the pioposed fees substanti transition period.
w NRC considered alternatives,in Second, the NRCis further streamlining the materials fee program UC'"*** ** I" " I*T8' 0"" "O accordance with the RFA.These 4
and improving the predictabihty o thousands of sen loyees.
alternatives were evalus sd in the FY by eliminating the materials " flat.,f fees
-Some firms wou d be forced to cancel 1991 rule (56 FR 31472; July 10,1991) thek bases. One cornmenter, e i
renewal foes in $ 170.31. This action is in the FY 1992 rule (57 FR 32691; July consistent with the NRC's remnt receipts ofless than 5500,000 per 23,1992),in the FY 1993 rule (58 FR Business Process Reengineering year, stated that the proposed rule 38666; July 20,1993);in the FY 1994 initiative to extend the duration of would, in effect, force it to relinquish rule (59 FR 36895: July 20,1994) and in artain materials licenses. The NRC its soll density gauge and license, s the FY 1995 rule (60 FR 32218; June 20, published aproposed rule explaining thereby reducing its ability to do its 1995). The attematives considered by this initiative in the Federal Register on wwk effecuvely. Another commuter the NRC can be summarized as follow *.
j noted that the rule would fcree the i
September 8,1995, (60 FR 46784). In the
-Base fees on some measure of the Proposed rule, certain materials licenses c mpany and many other small would be extended for five years beyond businesses to get rid of the materials amount of radioactivitbpossessed by the licensee (e.g., num r of sources).
their expiradon date. Additionally, license altogether. Commenters stated -Base fees on the frequency of use of l
comments were requested on the that the proposed rule would result in the licensed radioactive material (e.g.,
general topic of the appropriate duration about to percent of the well-logging
- alume af patients).
cflicenses. A final rule was published licemos terminating their llams
-Base fees on the NRC size standards in the Federal Register on January 16, immediately and approximately 25 for small entities.
1996 (61 FR 1109).
Percentterminating their licenses Tbs NRC has reexamined the FY before the next annual assessment.
I I
' I"au f th th II. Impact on Small Entitles
-Some companies would go out of l
uv as Ba md that The comments received on the business. One commenter noted that reexamination, the NRC continues to Proped FY 1991-1995 feo rule the proposal would put it, and several believe that establishment of a I
revisions and the small entity other small companies, out of maximum fee for small entities is the 1
certificatio*.is received in response to the business or, at the very least, male it most appropriate option to reduce the final FY 1991-1995 fee rules indicate hard to survive.
et on small entities.
that NRC licensees quahfying as smtli
-Sorne companies would have budget Im.$e NRC established, and is I
entitles under the NRC's size standards Problems.Many medicallicensees continuing for FY 1996, a maximum are primarily those licensed under the commented that,in these times of annual fee for small entitles. The RFA NRC's materials program. Therefore, slashed reimbursements,the proped and its implementing ' iance do tiot this analysis will focus on the economic increase of the existing fees and the provide specific guide ~ es on what impact of the annual fees on materials introduction of additional fees would constitutes a signincant economic licensees.
signifimndy affect their budgets.
impact on a smal! entity. Therefore, the The Commission's fee regulations Another noted that,in view of the NRC has no benchmark to assist it in I
result in substantial fees being charged cuts by Medicare and other third determining the amount or the percent to those individuals, ciganizations, and Party carriers, the fees would produce of gross receipts that should be charged i
companies that are licensed under the a hardship and some facilities would to a small entity. For FY 1996, the NRC NRC materials program. Of these experience a great deal of difBculty in will rely on the analysis previously materials licensees, about 18 percent meeting this additional burden.
completed that established a maximum (approximately 1,300 licensees) have Over the past five years, annual fee for a small entity and the requested small entity cerufication in approximately 2,900 license, approval, amount of costs that must be recovered the past. In FY 1993, the NRC and segistration terminations have been from other NRC licensees as a result of conducted a survey ofits materials requested. Although some of these establishing the maximum annual fees.
licensees. 'ik results of this survey tenninations were requested because the The NRC continues to believe that the
{
indicated that 6bo' t 25 percent of these license was no longer needed or liunses to CFR Part 170 license fees u
i e.
j 16226 Fedtral Registir / Vol. 61, No. 72 / Friday, April 12, 1996 / Rules and Regulations l
1 (application and amendment), or any profit organizations with gross annual DATES: Effective April 12,1996.
adJua+==ats to these 11--% fees receipts of less than 3350,000, a aall b incorporation by referena of during the past year, do not have a governmental turisdictions with a certain publications listed in the algni8 ant impact on small entities. In population of less than 20,000, small regulations was approved by the 5
issuing this Anal rule for FY 1996, the NRC concludes that the to CFR Part 170 manufacturing entities that have less Director of the Federal Register as of than 35 employees and educational December 18,1995. (60 FR 61645, j
materials license fees do not have a institutions that are not State or publicly December 1,1995).
signi8 mat impact on a substantial supported and have less than 35 Comments for inclusion in the Rules number of amall entities and that the 10 i
CFR Part 171 mavimum annual small employees reduces the impact on amm11 Docket must be received on or before entities. At the same time, these redumd June 11,1996.
I entity fee of $1.800 be continued.
annual fees are consistant with the i
By maintmining the maximum annual ADORESSES: Submit comments in los for small entities at 31,800, the objectives of OBRA-90. %us, the triplicate to the Federal Aviation revised fees for small entities maintain 5
annualles for many small satities is a h=1=nr= betweet the objectives of Administration (FAA), New England
- reduced while at the same time OBRA-40 and the MFA.Herefore, the Region OfEco of the Assistant Chief i
materials lir=a
, including small analysis and conclusions established in Counsel, Attention: Rules Docket No.
i entities, pay for most of the FY 1996 costs attributable to them. De costs not the FY 1991-1995 rules remain valid for 94-ANFr-47,12 New England Ex this Anal rule for FY 1996.
Park, Burlington, MA 01803-5299.
recovered from small entitles are
%e service information referenced in 1
allocated to other materials licensees IFR Doc. 96-4026 Filed 4-tt-e6; 9 45 em) this AD may be obtained from McCauley 1
and to operstlag power reactors.
,u,,,,,,
Accessory Division, b Cessna AircraA i
However, the amount that must be Company,3535 MCouley Dr., VanMia, OH 45377-0430; telephone (513) 8W-res It main m mun DEPARTMENT OF TRANSPORTATION 4 ax 1 8 1 This annual fee is not expected to inmase.
herefore, the NRC is contin
, for FY Federal Avlegen Adrninletrodon FAA,New England Region OfEce of the 1996, the maximum annual fee annual fee plus surcharge) for certain 14 CFR Port 30 Assistant Chief Counsel 12 New England Executive Park, Burlington, j
small entities at $1,800 for each fee leo E 7r. - - m-30-MA; or at the OfBoe of the Federal category covered by each license issued p
Register, 800 North Capitol Street, NW.,
3 to a small entity.
suite 700, Washington, DC.
While reduc ng the impact on many Altworthiriese DirecWwee; McCauley POR PuRTien seroResAfl0N CONTACT:
small entities, the Commission agrees M
=, Diviolon, The Cesene f;
Aircraft Company, Model C35, C72, Chicago Aircraft Certi$ cation Office, Patricts Bonnen, Aerospace Engineer, n added to th' C74, C75, C80, C86, C87, C92, and C93 r smal es w Part 170 license fees, may continue to Series Propoliere FAA,Small Airplane Directorate,2300
'j i
Eart Dev'on Ave., Room 232, Des have a sign 16 cant impact on materials AGENCY: Federal Aviation Plaines, IL 60018; telephone (847) 294-4 licensees with annual gross receipts in Administration, DOT.
7134, fax (647) 294-7834.
the thousands of dollars. Therefore, as ACTION: Final rule: request for supusENTARmFORRAATiom On in FY 1992-1995, the NRC is continuing the lower-tier small entity annual fee og November 7,1995, the Federal Aviation comments.
Administration (FAA) issued AD 95-8400 for small entities with relatively SuensARY: his amendment revises an 24-05, Ac:endment 39-4437 (60 FR low gross annual remipts. De lower.
existing airworthiness directive (AD),
61645, December 1,1995), applicable to tier small entity fee of $400 also applies applicable to MCauley Accessory McCauley Accessory Division, The to manufacturing concerns, and D! vision.The Cessna Aircraft Company, Cessna Aircraft Company, Model C35, educationalindtitutions not State or Model C35. C72. C74, C75, C80, C86 C72,C74,C75,C80,C86,C87 C92,and publicly su employees.pported, with less than 35 C87 C92, and C93 series propellers, that C93 series propellers, to require initial Tais lower-tier small entity currently requires initial and repetitive fee was Bret established in the final rule visual and dye penetrant ins and repetitive visual and dye penetant published in the Federal Register on the propeller hub for cracks.pections of inspections of the propeller hub for This cracks.bt AD also requires a one-time April 17,1992 (57 FR 13625) and now existing AD also requires a optime eddy current inspection for cracks in the includes manufacturing companies with addy current on for crocas in the
)
a relatively small number of employees. threaded armes o the propeller hub threaded areas of the propeller hub j
IH.Samunar7 followed by woultication of the hub to
'llowed by rncoincation of the hub to contain oil with red dye, which l
contain oil with red dye as a terminating constitutes terminating action to the i
%e NRC has Walad he to CFR t
{
action to the repetitive inspections. %is Part 173 annualless sign 16cantly impacts a substantial number of small amendment clarines that a dye repetitive visual and dye penetrant laspections, bt action was prompted penetrant inspection is only necessary if by several reports of cracked propeller entities. A rnavimum fee for small crack indications are found or suspected j
hubs. Additionally, two incidents have entitles strikes s' ilanna between the d
the visualinspection.This ocx:urred where the propeller blades requirement to collect 100 percent of the t is prompted by requests amen NRC budget and the requirement to from operators for clari6 cation of asperated during flight bt condition, if not corrected, could result in emsider means of reducing the impact inspection procedures.b actions propeller blade separation due to a of the fee on small entities. On the basis speci6ed by this AD are intended to cracked propeller hub, which could ofits regulatory flexibility analyses, the prevent propeller blade separation dueresult in separation of the engine from NRC concludes that a maximum annual to 6 cracked propeller hub, which could the aircraft and su fee of $1,800 for small entitles and a lower tier small entity annual fee of result in separation of the engine from aircraft control.
the aircraft and subsequent loss of 5400 for small businesses and not for, aircraft control.
Since the issuance of that AD, the FAA has received requests from
\\