81 FR 13305 - Definition of Political Subdivision; Correction
DEPARTMENT OF THE TREASURY
Internal Revenue Service Federal Register Volume 81, Issue 49 (March 14, 2016)
Internal Revenue Service
Federal Register Volume 81, Issue 49 (March 14, 2016)
| Page Range | 13305-13306 | |
| FR Document | 2016-05624 |
[Federal Register Volume 81, Number 49 (Monday, March 14, 2016)] [Proposed Rules] [Pages 13305-13306] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-05624] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG-129067-15] RIN 1545-BM99 Definition of Political Subdivision; Correction AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correction to notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: This document contains corrections to a notice of proposed rulemaking and notice of public hearing (REG-129067-15) published in the Federal Register on Tuesday, February 23, 2016, (81 FR 8870) that specifies the elements of a political subdivision for purposes of tax- exempt bonds. The corrections amend the applicability dates of the proposed definition of political subdivision to provide transition rules with respect to bonds issued before the general applicability date and certain refunding bonds. DATES: Written or electronic comments for the notice of proposed rulemaking and notice of public hearing published at 81 FR 8870, February 23, 2016, are still being accepted and must be received by May 23, 2016. Request to speak and outlines of topics to be discussed at the public hearing scheduled for June 6, 2016, at 10:00 a.m., are also still being accepted and must be received by May 23, 2016. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-129067-15), Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered to: CC:PA:LPD:PR Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-129067-15), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC 20224 or sent electronically via the Federal eRulemaking Portal at www.regulations.gov (REG-129067- 15). The public hearing will be held at the Internal Revenue Building, 1111 Constitution Avenue NW., Washington, DC. FOR FURTHER INFORMATION CONTACT: Concerning the correction to the proposed regulations, Spence Hanemann at (202) 317-6980; concerning submissions of comments and the hearing, Oluwafunmilayo (Funmi) Taylor at (202) 317-6901 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background The notice of proposed rulemaking and notice of public hearing that is the subject of this correction is under section 103 of the Internal Revenue Code. Need for Correction As published in the Federal Register (81 FR 8870, February 23, 2016), Sec. 1.103-1(c) of the notice of proposed rulemaking and notice of public hearing proposes a new definition of political subdivision. Section 1.103-1(d)(1) provides that, except as otherwise provided in Sec. Sec. 1.103-1(d)(2) through (4), Sec. 1.103-1 (including Sec. 1.103-1(c)) applies to all entities for all purposes of sections 103 and 141 through 150 beginning on the date 90 days after the publication of the Treasury decision adopting the rules as final regulations in the Federal Register. Section 1.103-1(d)(2) provides that, for purposes of determining whether bonds are obligations of a political subdivision under section 103, the definition of political subdivision in Sec. 1.103-1(c) does not apply to an entity with respect to bonds that are issued before the general applicability date under Sec. 1.103-1(d)(1). Section 1.103-1(d)(3) [[Page 13306]] provides that, for purposes of determining whether refunding bonds of an entity are obligations of a political subdivision under section 103, the definition of political subdivision in Sec. 1.103-1(c) does not apply to an entity with respect to refunding bonds that are issued on or after the general applicability date under Sec. 1.103-1(d)(1) to refund bonds with respect to which Sec. 1.103-1(c) otherwise does not apply, provided the weighted average maturity of the refunding bonds is no longer than the remaining weighted average maturity of the refunded bonds. Section 1.103-1(d)(4) provides that, for existing entities that are created or organized before March 24, 2016, the definition of political subdivision in Sec. 1.103-1(c) does not apply for any purpose of sections 103 and 141 to 150 during the three-year period beginning on the general applicability date under Sec. 1.103-1(d)(1). After publication of the notice of proposed rulemaking and notice of public hearing in the Federal Register (81 FR 8870, February 23, 2016), the Treasury Department and the IRS received comments requesting that the transition rule in Sec. 1.103-1(d)(2) be applied not only for purposes of determining whether bonds are the obligations of a political subdivision under section 103 but also for other purposes of sections 103 and 141 through 150. Commenters explained that, without a transition rule for the private activity bond rules under section 141, certain bonds issued before the notice of proposed rulemaking and notice of public hearing was published in the Federal Register may become private activity bonds under section 141 at the expiration of the three-year period provided in Sec. 1.103-1(d)(4). Certain bonds offered after the notice of proposed rulemaking and notice of public hearing was published in the Federal Register but before the general applicability date under Sec. 1.103-1(d)(1) present similar issues. In response to these comments and to ensure that the notice of proposed rulemaking and notice of public hearing is fully prospective in effect, this document amends the transition rules for the definition of political subdivision in Sec. Sec. 1.103-1(d)(2) and (3) to apply not only for purposes of determining whether bonds are the obligations of a political subdivision under section 103 but also for all other purposes of sections 103 and 141 through 150, including the private activity bond rules. This document also amends the transition rule for refunding bonds in Sec. 1.103-1(d)(3) to provide relief consistent with that provided in Sec. 1.103-1(d)(2), as amended. The effect of the amendment to Sec. 1.103-1(d)(2) is that the proposed definition of political subdivision will not apply for any purpose under sections 103 and 141 through 150 to any bond issued prior to the general applicability date under Sec. 1.103-1(d)(1). The effect of the amendment to Sec. 1.103-1(d)(3) is that the proposed definition of political subdivision will not apply for any purpose under sections 103 and 141 through 150 to bonds issued to refund bonds covered by the transition rule in Sec. 1.103-1(d)(2), provided that the weighted average maturity is not extended. Correction to Publication Accordingly, the notice of proposed rulemaking and notice of public hearing published in the Federal Register (81 FR 8870) on February 23, 2016, is corrected as follows: Sec. 1.103-1 [Corrected] 0 1. On page 8873, third column, the third through twelfth lines of paragraph (d)(2) are corrected to read ``bonds. For all purposes of sections 103 and 141 through 150, the definition of political subdivision in paragraph (c) of this section does not apply with respect to bonds that are issued before the general applicability date under paragraph (d)(1) of this section.'' 0 2. On page 8873, third column, the third through eighteenth lines of paragraph (d)(3) are corrected to read ``bonds. For all purposes of sections 103 and 141 through 150, the definition of political subdivision in paragraph (c) of this section does not apply with respect to refunding bonds that are issued on or after the general applicability date under paragraph (d)(1) of this section to refund bonds with respect to which paragraph (c) of this section otherwise does not apply, provided that the weighted average maturity of the refunding bonds is no longer than the remaining weighted average maturity of the refunded bonds.'' Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. 2016-05624 Filed 3-9-16; 4:15 pm] BILLING CODE 4830-01-P
![Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules 13305
current state and county regulations; Under the National Marine at 81 FR 8870, February 23, 2016, are
and (4) the DEIS did not include Sanctuaries Act (16 U.S.C. 1434(b)(1)), still being accepted and must be
adequate analysis of the economic, and the terms of the 1998 compact received by May 23, 2016. Request to
social, and cultural impacts of the agreement, the Governor of Hawai‘i speak and outlines of topics to be
proposal. The State recommended that would have the ability to formally object discussed at the public hearing
the HIHWNMS should instead focus on to the proposed changes to the scheduled for June 6, 2016, at 10:00
regulatory gaps and avoid duplicating HIHWNMS before any change were a.m., are also still being accepted and
existing regulations. finalized in State waters. Given the must be received by May 23, 2016.
The Sanctuary Advisory Council respective positions of NOAA and ADDRESSES: Send submissions to:
(SAC) formed a working group to DLNR on the proposal, and NOAA’s CC:PA:LPD:PR (REG–129067–15),
evaluate the Draft Management Plan and desire to continue effective co- Internal Revenue Service, P.O. Box
DEIS and to provide recommendations management of the sanctuary with the 7604, Ben Franklin Station, Washington,
to the SAC. At the July 20, 2015, SAC State, NOAA has decided to withdraw DC 20044. Submissions may be hand
meeting in Honolulu, the council voted this proposal in light of the Governor’s delivered to: CC:PA:LPD:PR Monday
to support the full recommendations as likely objection. NOAA will continue to through Friday between the hours of 8
formulated by the working group and co-manage the current humpback a.m. and 4 p.m. to CC:PA:LPD:PR (REG–
forward them to sanctuary management. whale-focused sanctuary with the State 129067–15), Courier’s Desk, Internal
The SAC voted to support the transition of Hawai‘i. Revenue Service, 1111 Constitution
to ecosystem-based management, and Avenue NW., Washington, DC 20224 or
was supportive of the sanctuary’s III. Withdrawal
sent electronically via the Federal
proposed work on key issues and In consideration of the foregoing, eRulemaking Portal at
geographies, while recognizing the NOAA hereby withdraws the NPRM for www.regulations.gov (REG–129067–15).
importance of co-management between NOAA Docket No. NOAA–NOS–2015– The public hearing will be held at the
NOAA and the State. 0028, as published in the Federal Internal Revenue Building, 1111
II. Basis for Withdrawing the Proposed Register on March 26, 2015 (80 FR Constitution Avenue NW., Washington,
Rule 16223). DC.
Throughout the management plan Dated: March 2, 2016. FOR FURTHER INFORMATION CONTACT:
review process and following the end of John Armor, Concerning the correction to the
public comment period, NOAA and Acting Director, Office of National Marine proposed regulations, Spence
DLNR as co-managers engaged in a Sanctuaries. Hanemann at (202) 317–6980;
dialog to consider how to address the [FR Doc. 2016–05452 Filed 3–11–16; 8:45 am] concerning submissions of comments
issues raised during the management BILLING CODE 3510–NK–P and the hearing, Oluwafunmilayo
plan review process, including the (Funmi) Taylor at (202) 317–6901 (not
concerns from the State agencies. On toll-free numbers).
January 22, 2016, NOAA received a DEPARTMENT OF THE TREASURY SUPPLEMENTARY INFORMATION:
letter from DLNR expressing concerns
that expanding the HIHWNMS to an Background
Internal Revenue Service
ecosystem-based sanctuary would The notice of proposed rulemaking
provide a new definition of sanctuary 26 CFR Part 1 and notice of public hearing that is the
resources that could restrict the State’s subject of this correction is under
ability to recover damages for violations [REG–129067–15] section 103 of the Internal Revenue
of state laws and rules governing natural RIN 1545–BM99 Code.
resources within the sanctuary. The
Need for Correction
State expressed support for the concept Definition of Political Subdivision;
of ecosystem-based management but did Correction As published in the Federal Register
not support the expanded definition of (81 FR 8870, February 23, 2016),
sanctuary resources in state waters. AGENCY: Internal Revenue Service (IRS), § 1.103–1(c) of the notice of proposed
DLNR requested that HIHWNMS Treasury. rulemaking and notice of public hearing
consider adding additional marine ACTION: Correction to notice of proposed proposes a new definition of political
mammals, but not their habitat, as rulemaking. subdivision. Section 1.103–1(d)(1)
sanctuary resources, citing this as a way provides that, except as otherwise
for the sanctuary to further build on its SUMMARY: This document contains provided in §§ 1.103–1(d)(2) through
unique strengths and complement corrections to a notice of proposed (4), § 1.103–1 (including § 1.103–1(c))
existing state functions. On January 26, rulemaking and notice of public hearing applies to all entities for all purposes of
2016, NOAA responded to DLNR’s letter (REG–129067–15) published in the sections 103 and 141 through 150
and expressed NOAA’s view that adding Federal Register on Tuesday, February beginning on the date 90 days after the
marine mammals without including 23, 2016, (81 FR 8870) that specifies the publication of the Treasury decision
their habitat would be inconsistent with elements of a political subdivision for adopting the rules as final regulations in
the National Marine Sanctuaries Act. It purposes of tax-exempt bonds. The the Federal Register. Section 1.103–
is NOAA’s view that the definition of corrections amend the applicability 1(d)(2) provides that, for purposes of
mstockstill on DSK4VPTVN1PROD with PROPOSALS
‘‘sanctuary resource’’ (16 U.S.C. 1432) dates of the proposed definition of determining whether bonds are
does not allow NOAA to exclude habitat political subdivision to provide obligations of a political subdivision
since habitat clearly ‘‘contributes to the transition rules with respect to bonds under section 103, the definition of
value of the sanctuary.’’ This view of the issued before the general applicability political subdivision in § 1.103–1(c)
definition is consistent with the March date and certain refunding bonds. does not apply to an entity with respect
2015 DEIS which analyzed the proposal DATES: Written or electronic comments to bonds that are issued before the
to expand the purpose of the national for the notice of proposed rulemaking general applicability date under
marine sanctuary. and notice of public hearing published § 1.103–1(d)(1). Section 1.103–1(d)(3)
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![13306 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules
provides that, for purposes of § 1.103–1(d)(2), as amended. The effect DEPARTMENT OF LABOR
determining whether refunding bonds of of the amendment to § 1.103–1(d)(2) is
an entity are obligations of a political that the proposed definition of political Office of the Secretary
subdivision under section 103, the subdivision will not apply for any
definition of political subdivision in purpose under sections 103 and 141 29 CFR Part 13
§ 1.103–1(c) does not apply to an entity through 150 to any bond issued prior to RIN 1235–AA13
with respect to refunding bonds that are the general applicability date under
issued on or after the general § 1.103–1(d)(1). The effect of the Establishing Paid Sick Leave for
applicability date under § 1.103–1(d)(1) amendment to § 1.103–1(d)(3) is that the Federal Contractors
to refund bonds with respect to which
proposed definition of political AGENCY: Wage and Hour Division,
§ 1.103–1(c) otherwise does not apply,
subdivision will not apply for any Department of Labor.
provided the weighted average maturity
of the refunding bonds is no longer than purpose under sections 103 and 141
ACTION: Proposed rule; extension of
the remaining weighted average through 150 to bonds issued to refund comment period.
maturity of the refunded bonds. Section bonds covered by the transition rule in
1.103–1(d)(4) provides that, for existing § 1.103–1(d)(2), provided that the SUMMARY: This document extends the
entities that are created or organized weighted average maturity is not period for filing written comments until
before March 24, 2016, the definition of extended. April 12, 2016 on the proposed
political subdivision in § 1.103–1(c) rulemaking: Establishing Paid Sick
Correction to Publication Leave for Federal Contractors. The
does not apply for any purpose of
sections 103 and 141 to 150 during the Accordingly, the notice of proposed Notice of Proposed Rulemaking (NPRM)
three-year period beginning on the rulemaking and notice of public hearing was published in the Federal Register
general applicability date under published in the Federal Register (81 on February 25, 2016. The Department
§ 1.103–1(d)(1). FR 8870) on February 23, 2016, is of Labor (Department) is taking this
After publication of the notice of action in order to provide interested
corrected as follows:
proposed rulemaking and notice of parties additional time to submit
public hearing in the Federal Register § 1.103–1 [Corrected] comments.
(81 FR 8870, February 23, 2016), the DATES: The agency must receive
Treasury Department and the IRS ■ 1. On page 8873, third column, the
comments on or before April 12, 2016.
received comments requesting that the third through twelfth lines of paragraph
The period for public comments, which
transition rule in § 1.103–1(d)(2) be (d)(2) are corrected to read ‘‘bonds. For was set to close on March 28, 2016, will
applied not only for purposes of all purposes of sections 103 and 141 be extended to April 12, 2016.
determining whether bonds are the through 150, the definition of political Comments must be received by 11:59
obligations of a political subdivision subdivision in paragraph (c) of this p.m. on April 12, 2016.
under section 103 but also for other section does not apply with respect to
purposes of sections 103 and 141 ADDRESSES: You may submit comments,
bonds that are issued before the general identified by Regulatory Information
through 150. Commenters explained applicability date under paragraph
that, without a transition rule for the Number (RIN) 1235–AA13, by either
(d)(1) of this section.’’ one of the following methods:
private activity bond rules under section
141, certain bonds issued before the ■ 2. On page 8873, third column, the Electronic comments: Through the
notice of proposed rulemaking and third through eighteenth lines of Federal eRulemaking Portal at http://
notice of public hearing was published paragraph (d)(3) are corrected to read www.regulations.gov. Follow the
in the Federal Register may become ‘‘bonds. For all purposes of sections 103 instructions for submitting comments.
private activity bonds under section 141 and 141 through 150, the definition of Written comments: Through mail
at the expiration of the three-year period political subdivision in paragraph (c) of addressed to Robert Waterman,
provided in § 1.103–1(d)(4). Certain this section does not apply with respect Compliance Specialist, Division of
bonds offered after the notice of Regulations, Legislation and
to refunding bonds that are issued on or
proposed rulemaking and notice of Interpretation, Wage and Hour Division,
after the general applicability date
public hearing was published in the U.S. Department of Labor, Room S–
under paragraph (d)(1) of this section to
Federal Register but before the general 3510, 200 Constitution Avenue NW.,
refund bonds with respect to which Washington, DC 20210.
applicability date under § 1.103–1(d)(1) paragraph (c) of this section otherwise
present similar issues. Instructions: Please submit one copy
does not apply, provided that the of your comments by only one method.
In response to these comments and to
ensure that the notice of proposed weighted average maturity of the All submissions received must include
rulemaking and notice of public hearing refunding bonds is no longer than the the agency name (Wage and Hour
is fully prospective in effect, this remaining weighted average maturity of Division) and Regulatory Information
document amends the transition rules the refunded bonds.’’ Number identified above for this
for the definition of political Martin V. Franks,
rulemaking (1235–AA13). All comments
subdivision in §§ 1.103–1(d)(2) and (3) received will be posted without change
Chief, Publications and Regulations Branch,
to apply not only for purposes of to http://www.regulations.gov, including
Legal Processing Division, Associate Chief
determining whether bonds are the any personal information provided.
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Counsel (Procedure and Administration).
obligations of a political subdivision Consequently, prior to including any
[FR Doc. 2016–05624 Filed 3–9–16; 4:15 pm]
under section 103 but also for all other individual’s personal information such
purposes of sections 103 and 141 BILLING CODE 4830–01–P as Social Security Number, home
through 150, including the private address, telephone number, and email
activity bond rules. This document also addresses in a comment, the Department
amends the transition rule for refunding urges commenters to carefully consider
bonds in § 1.103–1(d)(3) to provide that their submissions are a matter of
relief consistent with that provided in public record and will be publicly
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Document Created: 2016-03-12 01:00:02
Document Modified: 2016-03-12 01:00:02
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Correction to notice of proposed rulemaking. | |
| Dates | Written or electronic comments for the notice of proposed rulemaking and notice of public hearing published at 81 FR 8870, February 23, 2016, are still being accepted and must be received by May 23, 2016. Request to speak and outlines of topics to be discussed at the public hearing scheduled for June 6, 2016, at 10:00 a.m., are also still being accepted and must be received by May 23, 2016. | |
| Contact | Concerning the correction to the proposed regulations, Spence Hanemann at (202) 317-6980; concerning submissions of comments and the hearing, Oluwafunmilayo (Funmi) Taylor at (202) 317-6901 (not toll-free numbers). | |
| FR Citation | 81 FR 13305 | |
| RIN Number | 1545-BM99 |
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