81 FR 43126 - Direct Investment Surveys: BE-13, Survey of New Foreign Direct Investment in the United States, and Changes to Private Fund Reporting on Direct Investment Surveys
DEPARTMENT OF COMMERCE
Bureau of Economic Analysis Federal Register Volume 81, Issue 127 (July 1, 2016)
Bureau of Economic Analysis
Federal Register Volume 81, Issue 127 (July 1, 2016)
| Page Range | 43126-43130 | |
| FR Document | 2016-15598 |
[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)] [Proposed Rules] [Pages 43126-43130] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-15598] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Economic Analysis 15 CFR Part 801 [Docket No. 160531475-6475-01] RIN 0691-AA85 Direct Investment Surveys: BE-13, Survey of New Foreign Direct Investment in the United States, and Changes to Private Fund Reporting on Direct Investment Surveys AGENCY: Bureau of Economic Analysis, Commerce. ACTION: Notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: This proposed rule would amend regulations of the Department of Commerce's Bureau of Economic Analysis (BEA) to set forth the reporting requirements for the BE-13, Survey of New Foreign Direct Investment in the United States. This proposed rule also provides information about, and an opportunity to comment on, plans to amend the reporting requirements for certain private funds on BEA's surveys of foreign direct investment in the United States, including the BE-605, Quarterly Survey of Foreign Direct Investment in the United States; the BE-15, Annual Survey of Foreign Direct Investment in the United States; and the BE-13, Survey of New Foreign Direct Investment in the United States. The BE-13 survey collects information on the acquisition or establishment of U.S. business enterprises by foreign investors, and information on expansions by existing U.S. affiliates of foreign companies. The data collected through the survey are used to measure the amount of new foreign direct investment in the United States and ensure complete coverage of BEA's other foreign direct investment statistics. BEA proposes several changes to the survey that will simplify reporting and provide more complete information for use in BEA's direct investment statistics. BEA also proposes [[Page 43127]] changes in survey form design and accompanying instructions to improve the quality of the data collected and reduce respondent burden. This mandatory BE-13 survey is required from persons subject to the reporting requirements, whether or not they are contacted by BEA. DATES: Comments on this proposed rule will receive consideration if submitted in writing on or before 5:00 p.m. August 30, 2016. ADDRESSES: You may submit comments, identified by RIN 0691- AA85, and referencing the agency name (Bureau of Economic Analysis), by any of the following methods:Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. For Keyword or ID, enter ``EAB-2016-0001.'' Email: [email protected]. Mail: Office of the Chief, Direct Investment Division, U.S. Department of Commerce, Bureau of Economic Analysis, BE-49, Washington, DC 20233. Hand Delivery/Courier: Office of the Chief, Direct Investment Division, U.S. Department of Commerce, Bureau of Economic Analysis, BE-49, 4600 Silver Hill Road, Suitland, MD 20746. Written comments regarding the burden-hour estimates or other aspects of the collection-of-information requirements contained in the proposed rule should be sent to BEA through any of the methods above and also to the Office of Management and Budget (OMB), OIRA, Paperwork Reduction Project 0608-0035, Attention PRA Desk Officer for BEA, via email at [email protected], or by FAX at 202-395-7245. Public Inspection: All comments received are a part of the public record and will generally be posted to http://www.regulations.gov without change. All personal identifying information (for example, name, address, etc.) voluntarily submitted by the commentator may be publicly accessible. Do not submit confidential business information or otherwise sensitive or protected information. BEA will accept anonymous comments (enter N/A in required fields if you wish to remain anonymous). Attachments to electronic comments will be accepted in Microsoft Word, Excel, or Adobe portable document file (pdf) formats only. FOR FURTHER INFORMATION CONTACT: Patricia Abaroa, Chief, Direct Investment Division (BE-49), Bureau of Economic Analysis, U.S. Department of Commerce, 4600 Silver Hill Road, Washington, DC 20233; phone (301) 278-9591. SUPPLEMENTARY INFORMATION: BEA will conduct the BE-13 survey under the authority of the International Investment and Trade in Services Survey Act (22 U.S.C. 3101-3108). Section 4(a) of the Act provides that the President shall, to the extent he deems necessary and feasible, (1) conduct a regular data collection program to secure current information on international capital flows and information related to international investment and trade in services, including (but not limited to) such information as may be necessary for computing and analyzing the United States balance of payments, employment and taxes of United States parents and affiliates, and the international investment and trade in services position of the United States; (2) conduct such studies and surveys as may be necessary to prepare reports in a timely manner on specific aspects of international investment and trade in services which may have significant implications for the economic welfare and national security of the United States. In Section 3 of Executive Order 11961, the President delegated the responsibility for performing functions under the Act concerning direct investment to the Secretary of Commerce, who has redelegated the responsibility to BEA. The purpose of the BE-13 survey is to collect data on the acquisition or establishment of U.S. business enterprises by foreign investors and the expansion of existing U.S. affiliates of foreign companies to establish a new facility where business is conducted. The data collected on the survey are used to measure the amount of new foreign direct investment in the United States, assess the impact on the U.S. economy, and based on this assessment, make informed policy decisions regarding foreign direct investment in the United States. Foreign direct investment in the United States is defined as the ownership or control, directly or indirectly, by one foreign person (foreign parent) of 10 percent or more of the voting securities of an incorporated U.S. business enterprise, or an equivalent interest of an unincorporated U.S. business enterprise, including a branch. BEA will make the survey available via eFile, BEA's electronic filing system. Notifications will be mailed to respondents as BEA becomes aware of a potentially reportable investment or when annual cost updates are needed. A response is required whether or not the respondent is contacted by BEA. The forms are due no later than 45 days after the acquisition is completed, the new U.S. business enterprise is established, the expansion is begun, the cost update is requested, or a notification letter is received from BEA by a U.S. business enterprise that does not meet the filing requirements for the survey. This proposed rule would amend 15 CFR 801.7 to set forth the reporting requirements for the BE-13, Survey of New Foreign Direct Investment in the United States. The Department of Commerce, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520 (PRA). Description of Changes BEA proposes to change the reporting requirements for certain private funds that file BEA's surveys of foreign direct investment in the United States: The BE-605, Quarterly Survey of Foreign Direct Investment in the United States; BE-15, Annual Survey of Foreign Direct Investment in the United States; and the BE-13, Survey of New Foreign Direct Investment in the United States. The BE-12, Benchmark Survey of Foreign Direct Investment in the United States, will also be affected by this change but will be addressed in a separate proposed rule in 2017. BEA, in cooperation with the Treasury Department, proposes to instruct reporters of investments in private funds that meet the definition of direct investment (that is, ownership by one person of 10 percent or more of the voting interest of a business enterprise) but display characteristics of portfolio investment (specifically, investors who do not intend to control or influence the management of an operating company) to report through the Treasury International Capital (TIC) reporting system, where other related portfolio investments are already being reported, and not to report on BEA's direct investment surveys. Direct investment in operating companies, including investment by and through private funds, will continue to be reported to BEA. This change will align the U.S. direct investment and portfolio investment data more closely with the intent of the investment. In addition, it will reduce burden for respondents, many of whom now report both to the TIC reporting system and to BEA's direct investment reporting system. Under the planned change, U.S. [[Page 43128]] affiliates that are private funds but do not own, directly or indirectly, 10 percent or more of the voting interest of another business enterprise that is not also a private fund or holding company, will no longer be required to report on BEA surveys of foreign direct investment in the United States. The proposed changes also amend the regulations and the survey forms for the BE-13 survey. These amendments include changes in reporting requirements and questionnaire design and instructions as well as data items collected. The following changes are specific to the BE-13. BEA proposes to combine Forms BE-13A, Report for Acquisition of a U.S. Business Enterprise That Remains a Separate Entity, and BE-13C, Report for Acquisition of a U.S. Business Enterprise That is Merged With an Existing U.S. Affiliate, into one form and discontinue the use of Form BE-13C. BEA proposes that these acquisitions be filed on Form BE-13A along with acquired U.S. business enterprises that will operate as a separate legal entity after the acquisition. The revised Form BE- 13A will be a report for a U.S. business enterprise when a foreign entity acquires a voting interest (directly, or indirectly through an existing U.S. affiliate) in that U.S. business enterprise (including segments, operating units, or real estate) and (1) the total cost of the acquisition is greater than $3 million; and (2) by this acquisition, the foreign entity now owns at least 10 percent of the voting interest (directly, or indirectly through an existing U.S. affiliate) in the acquired U.S. business enterprise. BEA originally offered separate forms to alleviate burden on the merging entities by not asking unnecessary questions. BEA found that companies often did not understand the difference between the forms and consequently reported on the wrong one, resulting in resubmissions. Combining the forms will eliminate confusion and the need for resubmission. BEA proposes to redesign Form BE-13A--adding, deleting, and revising questions--to limit the burden for the merging entities. These changes will not affect the data reported on the survey. BEA proposes to add an instruction to eliminate the requirement to file two forms--Form BE-13B (establishment) and Form BE-13A (acquisition)--when a new U.S. business enterprise is established to facilitate a single U.S. acquisition that takes place within 30 days. The U.S. business enterprise will be asked to consolidate the new U.S. business enterprise with the acquired U.S. business enterprise and submit a single Form BE-13A. The additional Form BE-13B did not provide any benefit to BEA's data collection and the elimination of the BE-13B filing requirement will be a reduction of burden on respondents. A question will be added to Form BE-13A to capture the names of both the established and acquired entities in this scenario. BEA proposes to clarify the reporting requirements for Form BE-13E, Cost Update for Projects Originally Reported on Forms BE-13B or BE-13D, by removing the reference to the established or expanded business enterprise still being under construction. At least one Form BE-13E must be filed for each reported BE-13B or BE-13D form to obtain actual costs since the cost data provided on these forms may not be final when filed. BEA is not proposing any changes to the reporting requirements for Form BE-13D, Report for the Expansion of an Existing U.S. Affiliate, or Form BE-13 Claim for Exemption. BEA proposes to modify the questions on existing U.S. affiliates in the ownership chain between the acquired or established U.S. business enterprise and the foreign parent to narrow the focus to the specific affiliates needed for analysis and to improve the sample frames of the other BEA surveys. Currently, the questions about existing U.S. affiliates are part of the foreign parent section, which is repeated for each foreign parent, creating duplicate entries for existing U.S. affiliates that have multiple foreign parents. The revised survey forms will eliminate this duplication by creating a new section for reporting ownership by existing U.S. affiliates. The updated questions increase the value of the collected information, reduce processing time, and reduce burden on respondents by greatly reducing the likelihood they provide duplicate or otherwise unneeded information. BEA proposes to restructure and rephrase the cost questions to more accurately capture any funding from the affiliated foreign group to facilitate the new foreign direct investment and to determine whether the funding was in the form of a loan or capital contribution. These data are needed to support BEA's U.S. International Transactions Accounts. BEA proposes to add an instruction on Forms BE-13B and BE-13D to direct U.S. businesses to report total expected costs by year based on their fiscal year end. Previously, the form did not specify whether to report costs on a calendar or fiscal year end basis. BEA proposes to add an instruction on Form BE-13 Claim for Exemption to direct U.S. businesses that are reporting expansions to skip the questions asking for U.S. affiliates' total assets, total liabilities, and net income (loss). These questions are not asked on Form BE-13D, Report for the Expansion of an Existing U.S. Affiliate, where expected costs are greater than $3 million, so they are not required for expansions with expected costs of $3 million or less. This was an oversight when BEA created the survey form. U.S. affiliate total sales, number of employees, industry code, country of foreign parent, and country of ultimate beneficial owner will still be required. BEA proposes to eliminate ``lease'' and ``construction'' from the list of expected costs on Forms BE-13B and BE-13D. BEA will continue to collect data on land; property, plant, and equipment (PP&E); intellectual property rights; fees, taxes, permits, and licenses; and other costs. Since leased equipment can also be classified as construction costs or PP&E, respondents struggled with these questions and the data BEA collected had costs inconsistently classified. BEA determined that any capitalized lease or construction costs could be collected as PP&E, so lease and construction can be eliminated. Any construction costs that are not to be capitalized can be combined with other costs. BEA proposes to add a question to Form BE-13D to collect the name of the expanding U.S. affiliate and to Form BE-13 Claim for Exemption to collect the name of the acquired, established, or expanding U.S. business enterprise. BEA has found that the name of the company filing these forms is often different than the name of the acquired, established, or expanding U.S. business enterprise. Obtaining the name of the U.S. business enterprise would help BEA evaluate respondent compliance. BEA proposes to add a question to Form BE-13 Claim for Exemption to collect the state where the new investment is located in cases when this form is being filed to report a new investment that met all the requirements for filing on Forms BE-13A, BE-13B, or BE-13D except the $3 million reporting threshold. This addition will improve BEA's data on new investment by state. Executive Order 12866 This proposed rule has been determined to be not significant for purposes of E.O. 12866. Executive Order 13132 This proposed rule does not contain policies with Federalism implications [[Page 43129]] sufficient to warrant preparation of a Federalism assessment under E.O. 13132. Paperwork Reduction Act This proposed rule contains a collection-of-information requirement subject to review and approval by OMB under the PRA. The requirement will be submitted to OMB for approval as a reinstatement, with change, of a previously approved collection under OMB control number 0608-0035. Notwithstanding any other provisions of the 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 PRA unless that collection displays a currently valid OMB control number. The BE-13 survey, as proposed, is expected to result in the filing of reports from approximately 2,550 U.S. affiliates each year. The respondent burden for this collection of information will vary from one company to another, but is estimated to average 1.1 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Thus the total respondent burden for this survey is estimated at 2,805 hours, compared to 2,160 hours for the previous BE-13 survey estimate. The increase in burden hours is due to the increase in the number of respondents expected to file. The previous estimate of the number of respondents was made before the survey was launched; the revised estimate is based on two years of data collection. Comments are requested concerning: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) The accuracy of the burden estimate; (c) Ways to enhance the quality, utility, and clarity of the information collected; and (d) Ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology. Written comments regarding the burden-hour estimates or other aspects of the collection-of-information requirements contained in the proposed rule should be sent to both BEA and OMB following the instructions given in the ADDRESSES section above. Regulatory Flexibility Act The Chief Counsel for Regulation, Department of Commerce, has certified to the Chief Counsel for Advocacy, Small Business Administration, under the provisions of the Regulatory Flexibility Act (RFA), 5 U.S.C. 605(b), that this proposed rulemaking, if adopted, will not have a significant economic impact on a substantial number of small entities. Most of the U.S. business enterprises that are required to file the survey are units of multinational enterprises. In order to qualify as a small business, the multinational enterprise as a whole must be evaluated when determining if the business meets the size standards set by the Small Business Administration. While BEA only collects information on the U.S. portion of the multinational enterprise, BEA estimates, based on private subscription-based databases, that fewer than 2 percent of the U.S. businesses required to file the BE-13 survey are units of foreign multinational enterprises that would be considered small businesses. For the few small businesses that meet the reporting requirements of the survey, BEA has attempted to keep burden to a minimum by asking only those questions that are considered essential. The questions required are for data items that a company would ordinarily have obtained when planning an acquisition, establishment, or expansion and therefore the answers are likely to be readily available from the existing records of the business. Because few small businesses are required to file the survey and because those that are impacted are subject to only a minimal reporting burden, the Chief Counsel for Regulation certifies that this proposed rule will not have a significant economic impact on a substantial number of small entities. List of Subjects in 15 CFR Part 801 Economic statistics, Foreign investment in the United States, International transactions, Penalties, Reporting and record keeping requirements. Dated: June 17, 2016. Brian Moyer, Director, Bureau of Economic Analysis. For reasons set forth in the preamble, BEA proposes to amend 15 CFR part 801 as follows: PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S. AND FOREIGN PERSONS AND SURVEYS OF DIRECT INVESTMENT 0 1. The authority citation for 15 CFR part 801 continues to read as follows: Authority: 5 U.S.C. 301; 15 U.S.C. 4908; 22 U.S.C. 3101-3108; E.O. 11961 (3 CFR, 1977 Comp., p. 86), as amended by E.O. 12318 (3 CFR, 1981 Comp. p. 173); and E.O. 12518 (3 CFR, 1985 Comp. p. 348). 0 2. Amend Sec. 801.7 to read as follows: Sec. 801.7 Rules and regulations for the BE-13, Survey of New Foreign Direct Investment in the United States. The BE-13, Survey of New Foreign Direct Investment in the United States, is conducted to collect data on the acquisition or establishment of U.S. business enterprises by foreign investors and the expansion of existing U.S. affiliates of foreign companies to establish new facilities where business is conducted. Foreign direct investment is defined as the ownership or control by one foreign person (foreign parent) of 10 percent or more of the voting securities of an incorporated U.S. business enterprise, or an equivalent interest of an unincorporated U.S. business enterprise, including a branch. All legal authorities, provisions, definitions, and requirements contained in Sec. Sec. 801.1 through 801.2 and Sec. Sec. 801.4 through 801.6 are applicable to this survey. Specific additional rules and regulations for the BE-13 survey are given in paragraphs (a) through (d) of this section. More detailed instructions are given on the report forms and instructions. (a) Response required. A response is required from persons subject to the reporting requirements of the BE-13, Survey of New Foreign Direct Investment in the United States, contained herein, whether or not they are contacted by BEA. Also, a person, or their agent, who is contacted by BEA about reporting in this survey, either by sending them a report form or by written inquiry, must respond in writing pursuant to this section. This may be accomplished by filing the properly completed BE-13 report (BE-13A, BE-13B, BE-13D, BE-13E, or BE-13 Claim for Exemption). (b) Who must report. A BE-13 report is required of any U.S. business enterprise, except certain private funds, see exception in item (b.4.), in which: (1) A foreign direct investment in the United States relationship is created; (2) An existing U.S. affiliate of a foreign parent establishes a new U.S. business enterprise, expands its U.S. operations, or acquires a U.S. business enterprise, or; (3) BEA requests a cost update (Form BE-13E) for a U.S. business enterprise that previously filed Form BE-13B or BE-13D. (4) Certain private funds are exempt from reporting on the BE-13 survey. If a U.S. business enterprise is a private [[Page 43130]] fund and does not own, directly or indirectly, 10 percent or more of another business enterprise that is not also a private fund or a holding company, it is not required to file any BE-13 report except to indicate exemption from the survey if contacted by BEA. (c) Forms to be filed. Depending on the type of investment transaction, U.S. affiliates would report their information on one of five forms--BE-13A, BE-13B, BE-13D, BE-13E, or BE-13 Claim for Exemption. (1) Form BE-13A--Report for a U.S. business enterprise when a foreign entity acquires a voting interest (directly, or indirectly through an existing U.S. affiliate) in that U.S. business enterprise including segments, operating units, or real estate; and (i) The total cost of the acquisition is greater than $3 million; and (ii) By this acquisition, the foreign entity now owns at least 10 percent of the voting interest (directly, or indirectly through an existing U.S. affiliate) in the acquired U.S. business enterprise. (2) Form BE-13B--Report for a U.S. business enterprise when it is established by a foreign entity or by an existing U.S. affiliate of a foreign parent; and (i) The expected total cost to establish the new U.S. business enterprise is greater than $3 million; and (ii) The foreign entity owns at least 10 percent of the voting interest (directly, or indirectly through an existing U.S. affiliate) in the new U.S. business enterprise. (3) Form BE-13D--Report for an existing U.S. affiliate of a foreign parent when it expands its operations to include a new facility where business is conducted and the expected total cost of the expansion is greater than $3 million. (4) Form BE-13E--Report for a U.S. business enterprise that previously filed Form BE-13B or BE-13D. Form BE-13E collects updated cost information and will be collected annually until the establishment or expansion of the U.S. business enterprise is complete. (5) Form BE-13 Claim for Exemption--Report for a U.S. business enterprise that: (i) was contacted by BEA but does not meet the requirements for filing Forms BE-13A, BE-13B, or BE-13D; or (ii) whether or not contacted by BEA, met all requirements for filing Forms BE-13A, BE-13B, or BE-13D except the $3 million reporting threshold. (d) Due date. The BE-13 forms are due no later than 45 calendar days after the acquisition is completed, the new U.S. business enterprise is established, the expansion is begun, the cost update is requested, or a notification letter is received from BEA by a U.S. business enterprise that does not meet the filing requirements for the survey. [FR Doc. 2016-15598 Filed 6-30-16; 8:45 am] BILLING CODE 3510-06-P
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coordinates of this airport to coincide PART 71—DESIGNATION OF CLASS A, AGL IL E5 Taylorville, IL [Amended]
with the FAAs aeronautical database; B, C, D, AND E AIRSPACE AREAS; AIR Taylorville Municipal Airport, IL
and Within a 6.5-mile radius of TRAFFIC SERVICE ROUTES; AND (Lat. 39°31′57″ N., long. 89°19′51″ W.)
Taylorville Municipal Airport, REPORTING POINTS That airspace extending from 700 feet
Taylorville, IL, and updating the above the surface within a 6.5-mile radius of
geographic coordinates of this airport to ■ 1. The authority citation for 14 CFR the Taylorville Municipal Airport.
coincide with the FAAs aeronautical part 71 continues to read as follows: Issued in Fort Worth, Texas, on June 22,
database. These airspace Authority: 49 U.S.C. 106(f), 106(g); 40103, 2016.
reconfigurations are necessary due to 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, Walter Tweedy,
the decommissioning of NDBs, 1959–1963 Comp., p. 389. Acting Manager, Operations Support Group,
cancellation of NDB approaches, and § 71.1 [Amended]
Central Service Center.
implementation of RNAV standard [FR Doc. 2016–15403 Filed 6–30–16; 8:45 am]
instrument approach procedures at the ■ 2. The incorporation by reference in
BILLING CODE 4910–13–P
above airports. Controlled airspace is 14 CFR 71.1 of FAA Order 7400.9Z,
necessary for the safety and Airspace Designations and Reporting
management of IFR operations at these Points, dated August 6, 2015, and
effective September 15, 2015, is DEPARTMENT OF COMMERCE
airports.
Class E airspace designations are amended as follows:
Bureau of Economic Analysis
published in paragraph 6005 of FAA Paragraph 6005 Class E Airspace Areas
Order 7400.9Z, dated August 6, 2015, Extending Upward From 700 Feet or More 15 CFR Part 801
and effective September 15, 2015, which Above the Surface of the Earth.
is incorporated by reference in 14 CFR * * * * * [Docket No. 160531475–6475–01]
71.1. The Class E airspace designations AGL IL E5 Carmi, IL [Amended] RIN 0691–AA85
listed in this document will be
Carmi Municipal Airport, IL Direct Investment Surveys: BE–13,
published subsequently in the Order. (Lat. 38°05′22″ N., long. 88°07′23″ W.)
Survey of New Foreign Direct
Regulatory Notices and Analyses That airspace extending upward from 700
feet above the surface within a 6.4-mile Investment in the United States, and
The FAA has determined that this radius of the Carmi Municipal Airport. Changes to Private Fund Reporting on
regulation only involves an established * * * * * Direct Investment Surveys
body of technical regulations for which
frequent and routine amendments are AGL IL E5 De Kalb, IL [Amended] AGENCY: Bureau of Economic Analysis,
necessary to keep them operationally De Kalb Taylor Municipal Airport, IL
Commerce.
current, is non-controversial and (Lat. 41°56′02″ N., long. 88°42′20″ W.) ACTION: Notice of proposed rulemaking.
unlikely to result in adverse or negative That airspace extending upward from 700
feet above the surface within a 6.8-mile SUMMARY: This proposed rule would
comments. It, therefore: (1) Is not a
radius of the De Kalb Taylor Municipal amend regulations of the Department of
‘‘significant regulatory action’’ under Airport, excluding that airspace which Commerce’s Bureau of Economic
Executive Order 12866; (2) is not a overlies the Chicago, IL, Class E airspace Analysis (BEA) to set forth the reporting
‘‘significant rule’’ under DOT area. requirements for the BE–13, Survey of
Regulatory Policies and Procedures (44 * * * * * New Foreign Direct Investment in the
FR 11034; February 26, 1979); and (3)
AGL IL E5 Harrisburg, IL [Amended] United States. This proposed rule also
does not warrant preparation of a
Harrisburg-Raleigh Airport, IL
provides information about, and an
regulatory evaluation as the anticipated
(Lat. 37°48′41″ N., long. 88°33′016″ W.) opportunity to comment on, plans to
impact is so minimal. Since this is a
That airspace extending upward from 700 amend the reporting requirements for
routine matter that will only affect air
feet above the surface within a 6.5-mile certain private funds on BEA’s surveys
traffic procedures and air navigation, it radius of Harrisburg-Raleigh Airport. of foreign direct investment in the
is certified that this rule, when
* * * * * United States, including the BE–605,
promulgated, would not have a
Quarterly Survey of Foreign Direct
significant economic impact on a AGL IL E5 Kewanee, IL [Amended]
Investment in the United States; the BE–
substantial number of small entities Kewanee Municipal Airport, IL 15, Annual Survey of Foreign Direct
under the criteria of the Regulatory (Lat. 41°12′19″ N., long. 89°57′50″ W.)
That airspace extending upward from 700
Investment in the United States; and the
Flexibility Act.
feet above the surface within a 6.5-mile BE–13, Survey of New Foreign Direct
Environmental Review radius of the Kewanee Airport. Investment in the United States.
This proposal will be subject to an * * * * * The BE–13 survey collects
environmental analysis in accordance information on the acquisition or
AGL IL E5 Litchfield, IL [Amended] establishment of U.S. business
with FAA Order 1050.1F,
‘‘Environmental Impacts: Policies and Litchfield Municipal Airport, IL enterprises by foreign investors, and
(Lat. 39°09′45″ N., long. 89°40′29″ W.) information on expansions by existing
Procedures’’ prior to any FAA final That airspace extending upward from 700
regulatory action. U.S. affiliates of foreign companies. The
feet above the surface within a 6.7-mile data collected through the survey are
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
List of Subjects in 14 CFR Part 71 radius of the Litchfield Municipal Airport.
used to measure the amount of new
* * * * * foreign direct investment in the United
Airspace, Incorporation by reference,
Navigation (air). AGL IL E5 Paris, IL [Amended] States and ensure complete coverage of
Paris, Edgar County Airport, IL BEA’s other foreign direct investment
The Proposed Amendment statistics. BEA proposes several changes
(Lat. 39°41′59″ N., long. 87°40′15″ W.)
Accordingly, pursuant to the That airspace extending upward from 700 to the survey that will simplify
authority delegated to me, the Federal feet above the surface within a 6.4-mile reporting and provide more complete
Aviation Administration proposes to radius of the Edgar County Airport. information for use in BEA’s direct
amend 14 CFR part 71 as follows: * * * * * investment statistics. BEA also proposes
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fund and does not own, directly or is requested, or a notification letter is site viewing and printing in the
indirectly, 10 percent or more of another received from BEA by a U.S. business Commission’s Public Reference Room,
business enterprise that is not also a enterprise that does not meet the filing 100 F Street NE., Washington, DC
private fund or a holding company, it is requirements for the survey. 20549, on official business days
not required to file any BE–13 report [FR Doc. 2016–15598 Filed 6–30–16; 8:45 am] between the hours of 10:00 a.m. and
except to indicate exemption from the BILLING CODE 3510–06–P
3:00 p.m. All comments received will be
survey if contacted by BEA. posted without change; the Commission
(c) Forms to be filed. Depending on does not edit personal identifying
the type of investment transaction, U.S. information from submissions. You
SECURITIES AND EXCHANGE
affiliates would report their information should submit only information that
COMMISSION
on one of five forms—BE–13A, BE–13B, you wish to make available publicly.
BE–13D, BE–13E, or BE–13 Claim for 17 CFR Parts 229, 230, and 240 Studies, memoranda, or other
Exemption. substantive items may be added by the
(1) Form BE–13A—Report for a U.S. [Release No. 33–10107; 34–78168; File No. Commission or staff to the comment file
business enterprise when a foreign S7–12–16]
during this rulemaking. A notification of
entity acquires a voting interest RIN 3235–AL90 the inclusion in the comment file of any
(directly, or indirectly through an such materials will be made available
existing U.S. affiliate) in that U.S. Amendments to Smaller Reporting on the Commission’s Web site. To
business enterprise including segments, Company Definition ensure direct electronic receipt of such
operating units, or real estate; and notifications, sign up through the ‘‘Stay
AGENCY: Securities and Exchange
(i) The total cost of the acquisition is Connected’’ option at www.sec.gov to
Commission.
greater than $3 million; and receive notifications by email.
(ii) By this acquisition, the foreign ACTION: Proposed rule.
FOR FURTHER INFORMATION CONTACT:
entity now owns at least 10 percent of SUMMARY: We are proposing Amy Reischauer, Special Counsel,
the voting interest (directly, or amendments to the definition of Office of Small Business Policy,
indirectly through an existing U.S. ‘‘smaller reporting company’’ as used in Division of Corporation Finance, at
affiliate) in the acquired U.S. business our rules and regulations. The proposed (202) 551–3460, U.S. Securities and
enterprise. amendments, which would expand the Exchange Commission, 100 F Street NE.,
(2) Form BE–13B—Report for a U.S.
number of registrants that qualify as Washington, DC 20549–3628.
business enterprise when it is
smaller reporting companies, are SUPPLEMENTARY INFORMATION: We are
established by a foreign entity or by an
intended to promote capital formation proposing amendments to Rule 405 1
existing U.S. affiliate of a foreign parent;
and reduce compliance costs for smaller under the Securities Act of 1933
and
registrants, while maintaining investor (Securities Act),2 Rule 12b–2 3 under the
(i) The expected total cost to establish
protections. Registrants with less than Securities Exchange Act of 1934
the new U.S. business enterprise is
$250 million in public float would (Exchange Act) 4 and Item 10(f) 5 of
greater than $3 million; and
(ii) The foreign entity owns at least 10 qualify, as would registrants with zero Regulation S–K.6
percent of the voting interest (directly, public float if their revenues were below
$100 million in the previous year. Table of Contents
or indirectly through an existing U.S.
affiliate) in the new U.S. business DATES: Comments should be received on I. Introduction
enterprise. or before August 30, 2016. II. Proposed Amendments
(3) Form BE–13D—Report for an ADDRESSES: Comments may be A. Rationale for Proposed Amendments
B. Proposed Amendments to Smaller
existing U.S. affiliate of a foreign parent submitted by any of the following
Reporting Company Definition
when it expands its operations to methods: 1. Public Float Thresholds
include a new facility where business is 2. Revenue Thresholds
Electronic Comments
conducted and the expected total cost of C. Proposed Amendments to Accelerated
the expansion is greater than $3 million. • Use the Commission’s Internet Filer and Large Accelerated Filer
(4) Form BE–13E—Report for a U.S. comment form (http://www.sec.gov/ Definitions
business enterprise that previously filed rules/proposed.shtml); D. Request for Comment
Form BE–13B or BE–13D. Form BE–13E • Send an email to rule-comments@ III. Economic Analysis
collects updated cost information and sec.gov. Please include File No. S7–12– A. Baseline and Potential Affected Parties
16 on the subject line; or B. Potential Economic Effects
will be collected annually until the
establishment or expansion of the U.S. • Use the Federal eRulemaking Portal 1. Introduction
2. Estimation of Potential Costs and
business enterprise is complete. (http://www.regulations.gov). Follow the
Benefits
(5) Form BE–13 Claim for instructions for submitting comments. 3. Affiliated Ownership and Adverse
Exemption—Report for a U.S. business Paper Comments Selection
enterprise that: 4. Effects on Efficiency, Competition and
(i) was contacted by BEA but does not • Send paper comments to Secretary, Capital Formation
meet the requirements for filing Forms Securities and Exchange Commission, C. Possible Alternatives
BE–13A, BE–13B, or BE–13D; or 100 F Street NE., Washington, DC D. Request for Comment
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
(ii) whether or not contacted by BEA, 20549–1090. IV. Paperwork Reduction Act
met all requirements for filing Forms All submissions should refer to File A. Background
B. Summary of Information Collections
BE–13A, BE–13B, or BE–13D except the Number S7–12–16. To help us process
$3 million reporting threshold. and review your comments more 1 17 CFR 230.405.
(d) Due date. The BE–13 forms are efficiently, please use only one method. 2 15 U.S.C. 77a et seq.
due no later than 45 calendar days after The Commission will post all comments 3 17 CFR 240.12b–2.
the acquisition is completed, the new on the Commission’s Web site (http:// 4 15 U.S.C. 78a et seq.
U.S. business enterprise is established, www.sec.gov/rules/proposed.shtml). 5 17 CFR 229.10(f).
the expansion is begun, the cost update Comments are also available for Web 6 17 CFR 229.10 et seq.
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Document Created: 2016-07-14 11:38:01
Document Modified: 2016-07-14 11:38:01
| 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 | Notice of proposed rulemaking. | |
| Dates | Comments on this proposed rule will receive consideration if submitted in writing on or before 5:00 p.m. August 30, 2016. | |
| Contact | Patricia Abaroa, Chief, Direct Investment Division (BE-49), Bureau of Economic Analysis, U.S. Department of Commerce, 4600 Silver Hill Road, Washington, DC 20233; phone (301) 278-9591. | |
| FR Citation | 81 FR 43126 | |
| RIN Number | 0691-AA85 | |
| CFR Associated | Economic Statistics; Foreign Investment in the United States; International Transactions; Penalties and Reporting and Record Keeping Requirements |
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