[Federal Register Volume 69, Number 38 (Thursday, February 26, 2004)]
[Notices]
[Pages 8988-8989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4245]


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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