Proposed Extension of Information Collection Request Submitted
for Public Comment; Proposed Extension of Information Collection;
Comment Request; Prohibited Transaction Class Exemption 85-68--To [02/26/2004]
Volume 69, Number 38, Page 8988-8989
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
Proposed Extension of Information Collection Request Submitted
for Public Comment; Proposed Extension of Information Collection;
Comment Request; Prohibited Transaction Class Exemption 85-68--To
Permit Employee Benefit Plans To Invest in Customer Notes of Employers
AGENCY: Employee Benefits Security Administration, Department of Labor.
ACTION: Notice.
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SUMMARY: The Department of Labor, as part of its continuing effort to
reduce paperwork and respondent burden, conducts a preclearance
consultation program to provide the general public and Federal agencies
with an opportunity to comment on proposed and continuing collections
of information in accordance with the Paperwork Reduction Act of 1995
(PRA 95). This program helps to ensure that requested data can be
provided in the desired format, reporting burden (time and financial
resources) is minimized, collection instruments are clearly understood,
and the impact of collection requirements on respondents can be
properly assessed. Currently, the Employee Benefits Security
Administration is soliciting comments on the proposed extension of
Prohibited Transaction Class Exemption 85-68, which permits employee
benefit plans to invest in customer notes of employers.
A copy of the information collection request (ICR) can be obtained
by contacting the individual shown in the Addresses section of this
notice.
DATES: Written comments must be submitted to the office shown in the
Addresses section on or before April 26, 2004.
ADDRESSES: Gerald B. Lindrew, Department of Labor, Employee Benefits
Security Administration, 200 Constitution Avenue NW., Washington,
[[Page 8989]]
DC 20210, (202) 693-8410, FAX (202) 693-4745 (these are not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
I. Background
Pursuant to section 408 of ERISA, the Department has authority to
grant an exemption from the prohibitions of sections 406 and 407(a) if
it can determine that the exemption is administratively feasible, in
the interest of participants and beneficiaries, and protective of the
rights of participants and beneficiaries of the plan. Prohibited
Transaction Class Exemption 85-68 describes the conditions under which
a plan is permitted to acquire customer notes accepted by an employer
of employees covered by the plan in the ordinary course of the
employer's primary business activity. The exemption covers sales as
well as contributions of customer notes by an employer to its plan.
Specifically, the exemption requires that the employer provide a
written guarantee to repurchase a note which becomes more than 60 days
delinquent, that such notes be secured by a perfected security interest
in the property financed by the note, and that the collateral be
insured. This ICR requires that records pertaining to the transaction
be maintained for a period of six years for the purpose of ensuring
that the transactions are protective of the rights of participants and
beneficiaries.
II. Review Focus
The Department of Labor (Department) is particularly interested in
comments that:
[sbull] Evaluate 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;
[sbull] Evaluate the accuracy of the agency's estimate of the
burden of the proposed collection of information, including the
validity of the methodology and assumptions used;
[sbull] Enhance the quality, utility, and clarity of the
information to be collected; and
[sbull] Minimize the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology, e.g., permitting
electronic submissions of responses.
III. Current Actions
The Office of Management and Budget's (OMB) approval of this ICR
will expire on July 31, 2004. After considering comments received in
response to this notice, the Department intends to submit the ICR to
OMB for continuing approval. No change to the existing ICR is proposed
or made at this time.
Agency: Employee Benefits Security Administration, Department of
Labor.
Title: Prohibited Transaction Class Exemption 85-68.
Type of Review: Extension of a currently approved collection of
information.
OMB Number: 1210-0094.
Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
Respondents: 525.
Frequency: On Occasion.
Responses: 1900.
Average Response Time: [if applicable]: 1 hour.
Estimated Total Burden Hours: 1900 hours.
Comments submitted in response to this notice will be summarized
and/or included in the request for OMB approval of the ICR; they will
also become a matter of public record.
Dated: February 20, 2004.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Employee Benefits
Security Administration.
[FR Doc. 04-4245 Filed 2-25-04; 8:45 am]
BILLING CODE 4510-29-P
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