Submission for OMB Review; Comment Request;

[Federal Register Volume 64, Number 142 (Monday, July 26, 1999)]
[Notices]
[Page 40399]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18988]



[[Page 40399]]

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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request;

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, 450 5th Street, 
NW, Washington, DC 20549-0102

Extension:
    Rule 19b-1, SEC File No. 270-312, OMB Control No. 3235-0354

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for extension of the previously approved 
collections of information discussed below.
    Rule 19b-1 is entitled ``Frequency of Distribution of Capital 
Gains.'' The rule prohibits registered investment companies (``funds'') 
from distributing long-term capital gains more than once every twelve 
months unless certain conditions are met. Rule 19b-1(c) permits unit 
investment trusts (``UITs'') engaged exclusively in the business of 
investing in certain eligible fixed-income securities to distribute 
long-term capital gains more than once every twelve months, if (i) the 
capital gains distribution falls within one of several categories 
specified in the rule [rule 19b-1(c)(1)] and (ii) the distribution is 
accompanied by a report to the unitholder that clearly describes the 
distribution as a capital gains distribution [rule 19b-1(c)(2)] (the 
``notice requirement''). The purpose of this notice requirement is to 
ensure that unitholders understand that the source of the distribution 
is long-term capital gains.
    Rule 19b-1(e) permits a fund to apply for permission to distribute 
long-term capital gains more than once a year if the funds did not 
foresee the circumstances that created the need for the distribution. 
The application must set forth the pertinent facts and explain the 
circumstances that justify the distribution. An application that meets 
those requirements is deemed to be granted unless the Commission denies 
the request within 15 days after the Commission receives the 
application. The Commission uses, the information required by rule 19b-
1(e) to facilitate the processing of requests from funds for 
authorization to make a distribution that would not otherwise be 
permitted by the rule.
    The Commission staff estimates the time required to comply with the 
notice requirement of rule 19b-1(c) to be one hour or less for each 
additional distribution of long-term capital gains. As of December 31, 
1998, there were approximately 11,500 UIT portfolios that may be 
eligible to use the rule. The staff estimates that on average each UIT 
may be required to prepare a notice under the rule one time each year. 
Therefore, the estimated total annual maximum reporting burden is 
11,500 hours.
    The Commission staff estimates that the time required to prepare an 
application under rule 19b-1(e) if approximately four hours. The staff 
estimates that on average six funds each file one application per year 
under this rule. Based on these estimates, the total paperwork burden 
is 24 hours for paragraph (e) of rule 19b-1.
    Based on these calculations, the total number of respondents for 
rule 19b-1 is estimated to be 11,506 (11,500 UIT portfolios + 6 funds 
filing applications) and the total number of burden hours is estimated 
to be 11,524 (11,500 hours for the notice requirement + 24 hours for 
applications). This estimate of burden hours represents a decrease of 
2,651 hours from the current allocation of 14,175 burden hours. This 
decrease is attributable to a decrease in the estimated total number of 
respondents to rule 19b-1.
    These estimates of average burden hours are made solely for 
purposes of the Paperwork Reduction Act. The estimate is not derived 
from a comprehensive or even a representative survey or study of the 
costs of Commission rules.
    The collections of information required by 19b-1(c) and 19b-1(e) 
are necessary to obtain the benefits described above. Responses will 
not be kept confidential. An agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless it displays a currently valid control number.
    Please direct general comments regarding the above information to 
the following persons: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Washington, DC 
20503; and (ii) Michael E. Bartell, Associate Executive Director, 
Office of information Technology, Securities and Exchange Commission, 
Mail Stop 0-4, 450 5th Street, NW, Washington, DC 20549. Comments must 
be submitted to OMB within 30 days of this notice.

    Dated: July 16, 1999.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-18988 Filed 7-23-99; 8:45 am]
BILLING CODE 8010-01-M