[Federal Register Volume 71, Number 94 (Tuesday, May 16, 2006)]
[Notices]
[Pages 28532-28533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-7414]



[[Page 28531]]

-----------------------------------------------------------------------

Part V





Office of Management and Budget





-----------------------------------------------------------------------



North American Industry Classification System--Revision for 2007; 
Notice

  Federal Register / Vol. 71, No. 94 / Tuesday, March 16, 2006 / 
Notices  

[[Page 28532]]


-----------------------------------------------------------------------

OFFICE OF MANAGEMENT AND BUDGET


North American Industry Classification System--Revision for 2007

AGENCY: Executive Office of the President, Office of Management and 
Budget.

ACTION: Notice of final decisions.

-----------------------------------------------------------------------

SUMMARY: Under 44 U.S.C. 3504(e), the Office of Management and Budget 
(OMB) is announcing its final decisions for adoption of the North 
American Industry Classification System (NAICS) revisions for 2007 as 
recommended by the Economic Classification Policy Committee (ECPC) in 
OMB's notice for solicitation of comments published in Part IV of the 
March 11, 2005, Federal Register (70 FR 12390-12399). In addition, 
responding to comments received on the ECPC recommendations, OMB is 
adopting a classification change for Real Estate Investment Trusts 
(REITs) that was not part of the ECPC's recommendations. After 
additional consultation with the National Association of Real Estate 
Investment Trusts, the agencies participating in the ECPC, and other 
interested agencies, NAICS 525390, Real Estate Investment Trusts, will 
be deleted from the classification and portions will be reclassified as 
follows: (1) Equity REITs will be classified in the Real Estate 
Subsector in NAICS Industry Group 5311, Lessors of Real Estate, under 
individual national industries based on the content of the portfolio of 
real estate operated by a particular REIT; and (2) Mortgage REITs will 
remain classified in the Finance Sector but will be moved from NAICS 
525930 to NAICS 525990, Other Financial Vehicles. More details of this 
decision are presented in the SUPPLEMENTARY INFORMATION section below. 
In addition to this change, the title of NAICS industry 561422, 
``Telemarketing Bureaus'', is changed to ``Telemarketing Bureaus and 
Other Contact Centers'' to more accurately reflect the content of the 
industry. There is no content change; the title is simply revised to 
reflect the actual activities undertaken and the various technologies 
used.
    In the March 11, 2005, notice, OMB's Economic Classification Policy 
Committee recommended a revision of the industry classification system 
to modify the structure and detail for telecommunications industries 
based on changes that have occurred and are anticipated to occur in the 
future. The ECPC also recommended the creation of a new national 
industry for biotechnology research and development to reflect the 
growing importance of this activity in the economy. Additional changes 
were recommended to more adequately align the activities of producers 
in agriculture; manufacturing; and professional, technical, and 
scientific services.

DATES: Effective Date: Federal statistical establishment data published 
for reference years beginning on or after January 1, 2007, should be 
published using the 2007 NAICS United States Codes. Publication of a 
2007 NAICS United States Manual or supplement is planned for January 
2007.

ADDRESSES: You should send correspondence about the adoption and 
implementation of the 2007 NAICS as shown in the March 11, 2005, 
Federal Register notice, and modified by Attachments 1 and 2 of this 
notice, to: Katherine K. Wallman, Chief Statistician, Office of 
Management and Budget, 10201 New Executive Office Building, Washington, 
DC 20503, telephone number: (202) 395-3093, fax number: (202) 395-7245. 
All comments submitted in response to this notice will be made 
available to the public, including by posting them on OMB's Web site. 
For this reason, please do not include in your comments information of 
a confidential nature, such as sensitive personal information or 
proprietary information. You may send comments via e-mail to 
[email protected] with subject NAICS07. Because of delays in the 
receipt of regular mail related to security screening, respondents are 
encouraged to use electronic communications.
    You should address inquiries about the content of industries or 
requests for electronic copies of the 2007 NAICS tables to: John 
Murphy, Assistant Division Chief for Classification Activities, Service 
Sector Statistics Division, Bureau of the Census, Room 2641-3, 
Washington, DC 20233, telephone number: (301) 763-5172, fax number: 
(301) 457-1343, or by e-mail: [email protected].

Electronic Availability and Comments

    This document and the March 11, 2005, Federal Register notice are 
available on the Internet from the Census Bureau's Web site via WWW 
browser at http://www.census.gov/naics. This WWW page also contains 
previous NAICS Federal Register notices and related documents.

FOR FURTHER INFORMATION CONTACT: Paul Bugg, 10201 New Executive Office 
Building, Washington, DC 20503, e-mail address: [email protected] with 
subject NAICS07, telephone number: (202) 395-3095, fax number: (202) 
395-7245. Because of delays in the receipt of regular mail related to 
security screening, respondents are encouraged to use electronic 
communications.

SUPPLEMENTARY INFORMATION: The March 11, 2005, Federal Register notice 
(1) summarized the background for the proposed revisions to NAICS 2007 
in Part I; (2) contained a summary of public comments in Part II; (3) 
detailed the structure changes agreed upon by the three countries in 
Part III; and (4) provided a comprehensive listing of changes for 
national industries and their links to NAICS 2002 industries in Part 
IV.
    In response to the ECPC recommendations in the March 11, 2005, 
Federal Register, the National Association of Real Estate Investment 
Trusts (NAREIT) submitted comments to OMB requesting reconsideration of 
the ECPC recommendation regarding the classification of REITs. In 
response, the ECPC met on several occasions with other interested 
agencies, including representatives from the Department of the 
Treasury's Office of Tax Analysis, the Federal Reserve Board, and the 
Statistics of Income Division at the Internal Revenue Service to 
discuss the possible change in classification for REITs. OMB and the 
Bureau of Economic Analysis also met with representatives from NAREIT 
to discuss their request. Taking all of the information into account, 
OMB decided to change the classification of REITs.
    OMB's final decisions regarding revision of NAICS for 2007 are to 
adopt the proposal contained in the March 11, 2005, Federal Register, 
with the one change to the classification of REITs. Attachments 1 and 2 
show the corrected lines for Tables 1 and 2 in the March 11, 2005, 
Federal Register notice based on this change. In addition to this 
change, the title of NAICS industry 561422, ``Telemarketing Bureaus,'' 
is changed to ``Telemarketing Bureaus and Other Contact Centers'' to 
more accurately reflect the content of the industry. There is no 
content change; the title is simply revised to reflect the actual 
activities undertaken and the various technologies used.
    After taking into consideration other comments submitted in direct 
response to the March 11, 2005, Federal Register notice, as well as 
benefits and costs, and after consultation with the Economic 
Classification Policy Committee, Mexico's Instituto Nacional de 
Estadistica, Geografia e Informatica (INEGI) and Statistics Canada, OMB 
made no other changes to the scope and

[[Page 28533]]

substance of the ECPC's recommendations outlined in the March 11, 2005, 
Federal Register notice. The other comments that were received 
supported proposed changes, suggested changes that would be 
incompatible with the production-based foundation of NAICS, or 
suggested changes that would be incompatible with proposals that were 
accepted.
    NAICS was jointly developed by Canada, Mexico, and the United 
States. For the 2007 revision the three countries focused on updating 
telecommunications, while recognizing significant new activities such 
as biotechnology research and development, and minor content changes to 
more adequately reflect the production function orientation of NAICS.

                     Table 1.--NAICS United States 2007 Matched to NAICS United States 2002
----------------------------------------------------------------------------------------------------------------
                                                                              2002
    2007 NAICS code          2007 NAICS and U.S.          Status  code       NAICS      2002 NAICS description
                                 description                                  code
----------------------------------------------------------------------------------------------------------------
531110.................  Lessors of Residential       R..................     531110  Lessors of Residential
                          Buildings and Dwellings.                                     Buildings and Dwellings.
                                                                             *525930  Real Estate Investment
                                                                                       Trusts--hybrid or equity
                                                                                       REITs primarily leasing
                                                                                       residential Buildings and
                                                                                       Dwellings.
531120.................  Lessors of Nonresidential    R..................     531120  Lessors of Nonresidential
                          Buildings (except                                            Buildings (except
                          Miniwarehouses).                                             Miniwarehouses) .
                                                                             *525930  Real Estate Investment
                                                                                       Trusts--hybrid or equity
                                                                                       REITs primarily leasing
                                                                                       nonresidential buildings.
531130.................  Lessors of Miniwarehouses    R..................     531130  Lessors of Miniwarehouses
                          and Self-Storage Units.                                      and Self-Storage Units .
                                                                             *525930  Real Estate Investment
                                                                                       Trusts--hybrid or equity
                                                                                       REITs primarily leasing
                                                                                       miniwarehouses and self-
                                                                                       storage units.
531190.................  Lessors of Other Real        R..................     531190  Lessors of Other Real
                          Estate Property.                                             Estate Property .
                                                                             *525930  Real Estate Investment
                                                                                       Trusts--hybrid or equity
                                                                                       REITs primarily leasing
                                                                                       other real estate
                                                                                       property.
525990.................  Other Financial Vehicles...  R..................     525990  Other Financial Vehicles.
                                                                             *525930  Real Estate Investment
                                                                                       Trusts--hybrid or
                                                                                       mortgage REITs primarily
                                                                                       underwriting or investing
                                                                                       in mortgages.
----------------------------------------------------------------------------------------------------------------
*--Part of 2002 industry, R--NAICS 2002 industry code reused with different content, N--new NAICS industry for
  2007, E--existing industry with no changes.


                     Table 2.--NAICS United States 2002 Matched to NAICS United States 2007
----------------------------------------------------------------------------------------------------------------
                                                                              2007
    2002 NAICS code           2002 NAICS and U.S          Status  code       NAICS      2007 NAICS description
                                 description                                  code
----------------------------------------------------------------------------------------------------------------
525930.................  Real Estate Investment
                          Trusts.
                         Hybrid or equity REITs       pt.................     531110  Lessors of Residential
                          primarily leasing                                            Buildings and Dwellings.
                          residential buildings and
                          dwellings.
                         Hybrid or equity REITS       pt.................     531120  Lessors of Nonresidential
                          primarily leasing                                            Buildings (except
                          nonresidential buildings.                                    Miniwarehouses).
                         Hybrid or equity REITs       pt.................     531130  Lessors of Miniwarehouses
                          primarily leasing                                            and Self-Storage Units.
                          miniwarehouses or self-
                          storage units.
                         Hybrid or equity REITS       pt.................     531190  Lessors of Other Real
                          primarily leasing other                                      Estate Property .
                          real estate property.
                         Hybrid or mortgage REITs     pt.................     525990  Other Financial Vehicles.
                          primarily underwriting or
                          investing in mortgages.
----------------------------------------------------------------------------------------------------------------
pt.--Part of NAICS United States 2007 industry.


Donald R. Arbuckle,
Acting Administrator and Deputy Administrator, Office of Information 
and Regulatory Affairs.
 [FR Doc. E6-7414 Filed 5-15-06; 8:45 am]
BILLING CODE 3110-01-P