Organization; Disclosure to Shareholders; Disclosure to Investors in System-wide and Consolidated Bank Debt Obligations of the Farm Credit System; Advisory Vote, 17854-17856 [2014-06783]
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17854
Federal Register / Vol. 79, No. 61 / Monday, March 31, 2014 / Rules and Regulations
553 as a foreign affairs function of the
United States because it advances the
President’s foreign policy goals and
directly involves relationships between
the United States and its alien visitors.
Accordingly, DHS is not required to
provide public notice and an
opportunity to comment before
implementing the requirements under
this final rule.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 603(b)), as amended by the
Small Business Regulatory Enforcement
and Fairness Act of 1996 (SBREFA),
requires an agency to prepare and make
available to the public a regulatory
flexibility analysis that describes the
effect of a proposed rule on small
entities (i.e., small businesses, small
organizations, and small governmental
jurisdictions) when the agency is
required ‘‘to publish a general notice of
proposed rulemaking for any proposed
rule.’’ Because this rule is being issued
as a final rule, on the grounds set forth
above, a regulatory flexibility analysis is
not required under the RFA.
DHS has considered the impact of this
rule on small entities and has
determined that this rule will not have
a significant economic impact on a
substantial number of small entities.
The individual aliens to whom this rule
applies are not small entities as that
term is defined in 5 U.S.C. 601(6).
Accordingly, there is no change
expected in any process as a result of
this rule that would have a direct effect,
either positive or negative, on a small
entity.
C. Unfunded Mandates Reform Act of
1995
This rule will not result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
in any one year, and it will not
significantly or uniquely affect small
governments. Therefore, no actions were
deemed necessary under the provisions
of the Unfunded Mandates Reform Act
of 1995.
emcdonald on DSK67QTVN1PROD with RULES
D. Executive Order 12866
This amendment does not meet the
criteria for a ‘‘significant regulatory
action’’ as specified in Executive Order
12866.
E. Executive Order 13132
The rule will not have substantial
direct effects on the States, on the
relationship between the National
Government and the States, or on the
distribution of power and
responsibilities among the various
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16:18 Mar 28, 2014
Jkt 232001
levels of government. Therefore, in
accordance with section 6 of Executive
Order 13132, DHS has determined that
this final rule does not have sufficient
federalism implications to warrant the
preparation of a federalism summary
impact statement.
F. Executive Order 12988 Civil Justice
Reform
This rule meets the applicable
standards set forth in sections 3(a) and
3(b)(2) of Executive Order 12988.
G. Paperwork Reduction Act
The Department of Homeland
Security is modifying OMB Control
Number 1651–0111, Arrival and
Departure Record, to allow eligible
Chilean passport holders to use the
Electronic System for Travel
Authorization (ESTA) to apply for
authorization to travel under the VWP
prior to departing for the United States.
CBP uses the information to assist in
determining if an applicant is eligible
for travel under the VWP. The
Department is requesting emergency
processing of this change to 1651–0111
as the information is essential to the
mission of the agency and is needed
prior to the expiration of time periods
established under the PRA. Because of
the designation of Chile for
participation in the VWP, the
Department is requesting OMB approval
of this information collection in
accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3507).
The addition of Chile to the Visa
Waiver Program will result in an
estimated annual increase to
information collection 1651–0111 of
180,000 responses and 45,000 burden
hours. The total burden hours for ESTA,
including Chile, is as follows:
Estimated annual reporting burden:
4,830,000 hours.
Estimated number of respondents:
19,320,000 respondents.
Estimated average annual burden per
respondent: 15 minutes.
List of Subjects in 8 CFR Part 217
Air carriers, Aliens, Maritime carriers,
Passports and visas.
Amendments to the Regulations
For the reasons stated in the
preamble, DHS amends part 217 of title
8 of the Code of Federal Regulations (8
CFR part 217), as set forth below.
PART 217—VISA WAIVER PROGRAM
1. The authority citation for part 217
continues to read as follows:
■
Authority: 8 U.S.C. 1103, 1187; 8 CFR part
2.
PO 00000
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Fmt 4700
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2. In § 217.2 the definition of the term
‘‘Designated country’’ in paragraph (a) is
revised to read as follows:
■
§ 217.2
Eligibility.
(a) * * *
Designated country refers to Andorra,
Australia, Austria, Belgium, Brunei,
Chile, Czech Republic, Denmark,
Estonia, Finland, France, Germany,
Greece, Hungary, Iceland, Ireland, Italy,
Japan, Latvia, Liechtenstein, Lithuania,
Luxembourg, Malta, Monaco, the
Netherlands, New Zealand, Norway,
Portugal, Republic of Korea, San
Marino, Singapore, Slovak Republic,
Slovenia, Spain, Sweden, Switzerland,
Taiwan, and the United Kingdom. The
United Kingdom refers only to British
citizens who have the unrestricted right
of permanent abode in the United
Kingdom (England, Scotland, Wales,
Northern Ireland, the Channel Islands
and the Isle of Man); it does not refer to
British overseas citizens, British
dependent territories’ citizens, or
citizens of British Commonwealth
countries. Taiwan refers only to
individuals who have unrestricted right
of permanent abode on Taiwan and are
in possession of an electronic passport
bearing a personal identification
(household registration) number.
*
*
*
*
*
Jeh Charles Johnson,
Secretary.
[FR Doc. 2014–07254 Filed 3–28–14; 8:45 am]
BILLING CODE P
FARM CREDIT ADMINISTRATION
12 CFR Parts 611, 620, and 630
RIN 3052–AD00
Organization; Disclosure to
Shareholders; Disclosure to Investors
in System-wide and Consolidated Bank
Debt Obligations of the Farm Credit
System; Advisory Vote
Farm Credit Administration.
Interim final rule.
AGENCY:
ACTION:
The Farm Credit
Administration (FCA, we, or our) issues
this interim final rule amending its
regulations to remove all requirements
for non-binding, advisory votes at Farm
Credit System (System) banks and
associations. This rule is in response to
recent legislation wherein Congress
provided that no funds available to the
FCA may be used to ‘‘implement or
enforce’’ regulations requiring nonbinding, advisory votes on senior officer
compensation, and directed the FCA to
review its rules to ensure they reflect
SUMMARY:
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Federal Register / Vol. 79, No. 61 / Monday, March 31, 2014 / Rules and Regulations
Congressional intent that a primary
responsibility of the boards of directors
of System institutions is to oversee
compensation practices.
DATES: This interim final rule will
become effective 30 days after
publication in the Federal Register
during which either or both Houses of
Congress are in session. We will publish
notice of the effective date in the
Federal Register. Comments, if any, are
due within April 30, 2014.
ADDRESSES: Interested parties may
submit written comments by any of the
following methods:
• Email: Send an email to reg-comm@
fca.gov.
• FCA Web site: https://www.fca.gov.
Select ‘‘Public Commenters,’’ then
‘‘Public Comments,’’ and follow the
directions for ‘‘Submitting a Comment.’’
• Mail: Barry F. Mardock, Deputy
Director, Office of Regulatory Policy,
Farm Credit Administration, 1501 Farm
Credit Drive, McLean, VA 22102–5090.
You may review copies of all
comments we receive at our office in
McLean, Virginia or on our Web site at
https://www.fca.gov. Once you are in the
Web site, select ‘‘Public Commenters,’’
then ‘‘Public Comments,’’ and follow
the directions for ‘‘Reading Submitted
Public Comments.’’ We will show your
comments as submitted, including any
supporting data provided, but for
technical reasons we may omit items
such as logos and special characters.
Identifying information that you
provide, such as phone numbers and
addresses, will be publicly available.
However, we will attempt to remove
email addresses to help reduce Internet
spam.
FOR FURTHER INFORMATION CONTACT:
Deborah Wilson, Associate Director,
Office of Regulatory Policy, Farm
Credit Administration, McLean, VA
22102–5090, (703) 883–4224, TTY
(703) 883–4056, or
Laura McFarland, Senior Counsel,
Office of General Counsel, Farm
Credit Administration, McLean, VA
22102–5090, (703) 883–4020, TTY
(703) 883–4056.
SUPPLEMENTARY INFORMATION:
emcdonald on DSK67QTVN1PROD with RULES
I. Objective
Our objective in this interim final rule
is to ensure the provisions of Title VI of
the Consolidated Appropriations Act,
2014 (Appropriations Act) 1 are fulfilled
by ensuring our rules on non-binding,
advisory votes on senior officer
compensation are neither implemented
nor enforced.
1 113
Public Law 76, 128 Stat. 5 (H.R. 3547).
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16:18 Mar 28, 2014
Jkt 232001
II. Background
On October 3, 2012, the FCA 2 issued
a final rule regarding senior officer
compensation disclosures and related
topics that amended parts 611, 612, 619,
620, and 630.3 Section 611.410 of the
rule requires Farm Credit banks and
associations to hold non-binding,
advisory votes on senior officer
compensation in certain circumstances.4
On January 17, 2014, the President of
the United States signed into law the
Appropriations Act. The Appropriations
Act is the vehicle for making
consolidated appropriations for Federal
agencies in the fiscal year ending
September 30, 2014, and for other
purposes.5 A provision in Title VI of the
Appropriations Act limits the FCA from
using fiscal year 2014 funds to
‘‘implement or enforce those portions of
the final regulation published in the
Federal Register on October 3, 2012 (77
FR 60582), establishing a requirement
that Farm Credit System institutions
hold an advisory vote on officer
compensation.’’
Also, in February 2014, the
Agricultural Act of 2014 (Farm Bill) was
signed into law.6 Section 5404 of the
Farm Bill contained ‘‘Findings by
Congress’’ that emphasized the benefit
to System stockholders’ understanding
of the operations of their institution
through disclosure of the institution’s
senior officer compensation, and
explained that transparent disclosure
regarding compensation practices
reinforces the cooperative nature of
System institutions.7 Also, the findings
2 As an independent agency within the Executive
branch of the Federal Government, FCA is
responsible for the safety, soundness, regulation
and supervision of the banks, associations, and
related entities in the System, as well as the Federal
Agricultural Mortgage Corporation (Farmer Mac).
The System and Farmer Mac are Governmentsponsored enterprises with public service missions.
3 See 77 FR 60582. The rule was effective
December 17, 2012, but non-binding, advisory votes
on compensation increases of 15 percent or more
are not required until 2015 (77 FR 76215, December
27, 2012).
4 On December 4, 2012, the Farm Credit Council,
on behalf of the System banks and associations,
filed a petition requesting that we repeal those
provisions of the final rule that require a nonbinding, advisory vote on senior officer
compensation. Interested parties have the right to
petition a Federal agency to issue, amend, or repeal
regulations under 5 U.S.C. 553(e). We published the
petition in the Federal Register on February 19,
2013 (78 FR 11551), and invited comments.
5 The FCA does not receive a Federal
appropriation and is primarily funded through
assessments paid by System institutions. In its
appropriations Acts, Congress limits the amount of
funds that the FCA can assess and collect from
System institutions for our administrative expenses.
6 113 Public Law 79, 128 Stat. 649 (H.R. 2642),
signed by the President on February 7, 2014.
7 As cooperatives, the System banks and
associations are borrower-owned financial
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17855
in Section 5404 of the Farm Bill placed
primary responsibility, and therefore
accountability, for the establishment
and oversight of System institution
compensation practices with each
institution’s board of directors,8 and
clearly linked the boards’ oversight
responsibility for compensation to the
overall safe and sound operations of the
respective institutions. Congress
explained in the Farm Bill that any
regulation should strengthen the ability
of System institutions’ boards of
directors to oversee compensation
practices. Consistent with the
aforementioned Congressional findings,
the FCA will continue to emphasize,
through its regulatory and supervisory
authorities, the importance of providing
comprehensive, transparent and
beneficial disclosures to stockholders on
senior officer compensation. We also
intend to reinforce the responsibility
and accountability of System
institutions’ boards of directors in
establishing and overseeing
compensation practices to ensure the
safe and sound operation of the
institutions they serve.
III. Interim Final Rulemaking and NonBinding, Advisory Votes on
Compensation
With the promulgation of this rule,
the FCA is using the ‘‘Interim Final’’
rule procedure for rulemaking, which
permits agencies to adopt certain rules
on an expedited basis, without going
through the usual proposal and final
stages of notice-and-comment
rulemaking. The Administrative
Procedure Act (APA) generally requires
an agency to publish notice of a
proposed and final rulemaking in the
Federal Register. This requirement does
not apply, however, when the agency
‘‘for good cause finds . . . that notice and
public procedure thereon are
impracticable, unnecessary, or contrary
to the public interest.’’ 9
The FCA believes that the
amendments contained in this
rulemaking fit the category of rules
appropriate for interim final
rulemaking. We believe the provision in
institutions. Only those borrowers who are farmers,
ranchers, or producers or harvesters of aquatic
products, and cooperatives eligible to borrow from
System institutions under the Farm Credit Act of
1971, as amended, hold voting stock. Also, System
associations are voting stockholders of their
affiliated Farm Credit bank.
8 The voting stockholders of each System bank
and association elect a majority of its directors. The
stockholder-elected directors must constitute at
least 60 percent of the members of each institution’s
board.
9 See 5 U.S.C. 553(b). The APA, 5 U.S.C. 551–59,
et seq., supports this streamlined technique of
rulemaking.
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17856
Federal Register / Vol. 79, No. 61 / Monday, March 31, 2014 / Rules and Regulations
Title VI of the Appropriations Act
supports an interim final rulemaking as
the limitation arguably makes formal
proposed and final rulemaking
procedures ‘‘impracticable,
unnecessary, or contrary to the public
interest.’’ Further, we believe amending
the rule to remove the requirements for
non-binding, advisory votes will ensure
compliance with the Appropriations
Act. Consistent with the Appropriations
Act, as well as the Farm Bill, this
interim final rulemaking is limited to
the advisory vote provisions of the
October 3, 2012, (77 FR 60582)
rulemaking.
Specifically, we are removing the
following rule provisions:
D § 611.100(a), defining the term
‘‘advisory vote’’;
D § 611.360, requiring policies and
procedures for non-binding, advisory
votes on senior officer compensation;
D § 611.410, addressing non-binding,
advisory votes on senior officer
compensation;
D § 620.5(a)(11), requiring disclosure
of any advisory votes held during the
reporting year at the institution;
D § 620.6(c)(6), requiring disclosure
(adjacent to the compensation table) in
the annual report of a stockholder’s
right to petition for a non-binding,
advisory vote on senior officer
compensation; and
D § 630.20(i)(last sentence), requiring
disclosure of any advisory votes held
during the reporting year within the
System.
All other regulatory provisions and
changes resulting from the October 3,
2012 (77 FR 60582) rulemaking remain
in effect.
IV. Regulatory Flexibility Act
Pursuant to section 605(b) of the
Regulatory Flexibility Act (5 U.S.C. 601
et seq.), the FCA hereby certifies that
this interim final rule will not have a
significant economic impact on a
substantial number of small entities.
Each of the banks in the System,
considered together with its affiliated
associations, has assets and annual
income in excess of the amounts that
would qualify them as small entities.
Therefore, System institutions are not
‘‘small entities’’ as defined in the
Regulatory Flexibility Act.
emcdonald on DSK67QTVN1PROD with RULES
PART 611—ORGANIZATION
Authority: Secs. 1.2, 1.3, 1.4, 1.5, 1.12,
1.13, 2.0, 2.1, 2.2, 2.10, 2.11, 2.12, 3.0, 3.1,
3.2, 3.3, 3.7, 3.8, 3.9, 3.21, 4.3A, 4.12, 4.12A,
4.15, 4.20, 4.21, 4.25, 4.26, 4.27, 4.28A, 5.9,
5.17, 5.25, 7.0–7.13, 8.5(e) of the Farm Credit
Act (12 U.S.C. 2002, 2011, 2012, 2013, 2020,
2021, 2071, 2072, 2073, 2091, 2092, 2093,
2121, 2122, 2123, 2124, 2128, 2129, 2130,
2142, 2154a, 2183, 2184, 2203, 2208, 2209,
2211, 2212, 2213, 2214, 2243, 2252, 2261,
2279a–2279f–1, 2279aa–5(e)); secs. 411 and
412 of Pub. L. 100–233, 101 Stat. 1568, 1638;
sec. 414 of Pub. L. 100–399, 102 Stat. 989,
1004.
§ 611.100
Jkt 232001
8. The authority citation for part 630
continues to read as follows:
■
Authority: Secs. 4.2, 4.9, 5.9, 5.17, 5.19 of
the Farm Credit Act (12 U.S.C. 2153, 2160,
2243, 2252, 2254); sec. 424 of Pub. L. 100–
233, 101 Stat. 1568, 1656; sec. 514 of Pub. L.
102–552, 106 Stat. 4102.
2. Section 611.100 is amended by
removing paragraph (a) and
redesignating paragraphs (b) through (h)
as new paragraphs (a) through (g),
respectively.
§ 611.360
[Removed and reserved]
3. Section 611.360 is removed and
reserved.
■
§ 611.410
[Removed and reserved]
4. Section 611.410 is removed and
reserved.
■
PART 620—DISCLOSURE TO
SHAREHOLDERS
5. The authority citation for part 620
continues to read as follows:
■
Authority: Secs. 4.3, 4.3A, 4.19, 5.9, 5.17,
5.19 of the Farm Credit Act (12 U.S.C. 2154,
2154a, 2207, 2243, 2252, 2254); sec. 424 of
Pub. L. 100–233, 101 Stat. 1568, 1656; sec.
514 of Pub. L. 102–552, 106 Stat. 4102.
§ 620.5
[Amended]
[Amended]
7. Section 620.6 is amended by
removing paragraph (c)(6) and
redesignating paragraph (c)(7) as new
paragraph (c)(6).
■
PO 00000
[Amended]
9. Section 630.20 is amended by
removing the last sentence of paragraph
(i).
■
Dated: March 21, 2014.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2014–06783 Filed 3–28–14; 8:45 a.m.]
BILLING CODE 6705–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Amended]
■
§ 620.6
12 CFR Part 620
Accounting, Agriculture, Banks,
banking, Reporting and recordkeeping
requirements, Rural areas.
PART 630—DISCLOSURE TO
INVESTORS IN SYSTEM-WIDE AND
CONSOLIDATED BANK DEBT
OBLIGATIONS OF THE FARM CREDIT
SYSTEM
§ 630.20
1. The authority citation for part 611
continues to read as follows:
■
6. Section 620.5 is amended by
removing paragraph (a)(11) and
redesignating paragraph (a)(12) as new
paragraph (a)(11).
12 CFR Part 611
Agriculture, Banks, banking, Rural
areas.
16:18 Mar 28, 2014
Accounting, Agriculture, Banks,
banking, Organization and functions
(Government agencies), Reporting and
recordkeeping requirements, Rural
areas.
For the reasons stated in the
preamble, parts 611, 620, and 630 of
chapter VI, title 12 of the Code of
Federal Regulations are amended as
follows:
■
List of Subjects
VerDate Mar<15>2010
12 CFR Part 630
Frm 00008
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[Docket No. FAA–2013–0740; Directorate
Identifier 2013–NE–24–AD; Amendment 39–
17804; AD 2014–05–32]
RIN 2120–AA64
Airworthiness Directives; Pratt &
Whitney Turbofan Engines
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
We are adopting a new
airworthiness directive (AD) for all Pratt
& Whitney (PW) PW2037, PW2037D,
PW2037M, PW2040, PW2040D,
PW2043, PW2146, PW2240, PW2337,
PW2643, and F117–PW–100 turbofan
engines. This AD was prompted by a
rupture of the diffuser-to-high-pressure
turbine (HPT) case flange. This AD
requires a one-time eddy current
inspection (ECI) of affected engines with
certain diffuser and HPT cases installed.
This AD also requires a fluorescentpenetrant inspection (FPI) of the
diffuser case rear flange and HPT case
front flange. We are issuing this AD to
prevent failure of the diffuser-to-HPT
case flange, which could lead to
uncontained engine failure and damage
to the airplane.
DATES: This AD is effective May 5, 2014.
The Director of the Federal Register
approved the incorporation by reference
of a certain publication listed in this AD
as of May 5, 2014.
SUMMARY:
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]]>Agencies
[Federal Register Volume 79, Number 61 (Monday, March 31, 2014)]
[Rules and Regulations]
[Pages 17854-17856]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-06783]
=======================================================================
-----------------------------------------------------------------------
FARM CREDIT ADMINISTRATION
12 CFR Parts 611, 620, and 630
RIN 3052-AD00
Organization; Disclosure to Shareholders; Disclosure to Investors
in System-wide and Consolidated Bank Debt Obligations of the Farm
Credit System; Advisory Vote
AGENCY: Farm Credit Administration.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: The Farm Credit Administration (FCA, we, or our) issues this
interim final rule amending its regulations to remove all requirements
for non-binding, advisory votes at Farm Credit System (System) banks
and associations. This rule is in response to recent legislation
wherein Congress provided that no funds available to the FCA may be
used to ``implement or enforce'' regulations requiring non-binding,
advisory votes on senior officer compensation, and directed the FCA to
review its rules to ensure they reflect
[[Page 17855]]
Congressional intent that a primary responsibility of the boards of
directors of System institutions is to oversee compensation practices.
DATES: This interim final rule will become effective 30 days after
publication in the Federal Register during which either or both Houses
of Congress are in session. We will publish notice of the effective
date in the Federal Register. Comments, if any, are due within April
30, 2014.
ADDRESSES: Interested parties may submit written comments by any of the
following methods:
Email: Send an email to reg-comm@fca.gov.
FCA Web site: https://www.fca.gov. Select ``Public
Commenters,'' then ``Public Comments,'' and follow the directions for
``Submitting a Comment.''
Mail: Barry F. Mardock, Deputy Director, Office of
Regulatory Policy, Farm Credit Administration, 1501 Farm Credit Drive,
McLean, VA 22102-5090.
You may review copies of all comments we receive at our office in
McLean, Virginia or on our Web site at https://www.fca.gov. Once you are
in the Web site, select ``Public Commenters,'' then ``Public
Comments,'' and follow the directions for ``Reading Submitted Public
Comments.'' We will show your comments as submitted, including any
supporting data provided, but for technical reasons we may omit items
such as logos and special characters. Identifying information that you
provide, such as phone numbers and addresses, will be publicly
available. However, we will attempt to remove email addresses to help
reduce Internet spam.
FOR FURTHER INFORMATION CONTACT:
Deborah Wilson, Associate Director, Office of Regulatory Policy, Farm
Credit Administration, McLean, VA 22102-5090, (703) 883-4224, TTY (703)
883-4056, or
Laura McFarland, Senior Counsel, Office of General Counsel, Farm Credit
Administration, McLean, VA 22102-5090, (703) 883-4020, TTY (703) 883-
4056.
SUPPLEMENTARY INFORMATION:
I. Objective
Our objective in this interim final rule is to ensure the
provisions of Title VI of the Consolidated Appropriations Act, 2014
(Appropriations Act) \1\ are fulfilled by ensuring our rules on non-
binding, advisory votes on senior officer compensation are neither
implemented nor enforced.
---------------------------------------------------------------------------
\1\ 113 Public Law 76, 128 Stat. 5 (H.R. 3547).
---------------------------------------------------------------------------
II. Background
On October 3, 2012, the FCA \2\ issued a final rule regarding
senior officer compensation disclosures and related topics that amended
parts 611, 612, 619, 620, and 630.\3\ Section 611.410 of the rule
requires Farm Credit banks and associations to hold non-binding,
advisory votes on senior officer compensation in certain
circumstances.\4\ On January 17, 2014, the President of the United
States signed into law the Appropriations Act. The Appropriations Act
is the vehicle for making consolidated appropriations for Federal
agencies in the fiscal year ending September 30, 2014, and for other
purposes.\5\ A provision in Title VI of the Appropriations Act limits
the FCA from using fiscal year 2014 funds to ``implement or enforce
those portions of the final regulation published in the Federal
Register on October 3, 2012 (77 FR 60582), establishing a requirement
that Farm Credit System institutions hold an advisory vote on officer
compensation.''
---------------------------------------------------------------------------
\2\ As an independent agency within the Executive branch of the
Federal Government, FCA is responsible for the safety, soundness,
regulation and supervision of the banks, associations, and related
entities in the System, as well as the Federal Agricultural Mortgage
Corporation (Farmer Mac). The System and Farmer Mac are Government-
sponsored enterprises with public service missions.
\3\ See 77 FR 60582. The rule was effective December 17, 2012,
but non-binding, advisory votes on compensation increases of 15
percent or more are not required until 2015 (77 FR 76215, December
27, 2012).
\4\ On December 4, 2012, the Farm Credit Council, on behalf of
the System banks and associations, filed a petition requesting that
we repeal those provisions of the final rule that require a non-
binding, advisory vote on senior officer compensation. Interested
parties have the right to petition a Federal agency to issue, amend,
or repeal regulations under 5 U.S.C. 553(e). We published the
petition in the Federal Register on February 19, 2013 (78 FR 11551),
and invited comments.
\5\ The FCA does not receive a Federal appropriation and is
primarily funded through assessments paid by System institutions. In
its appropriations Acts, Congress limits the amount of funds that
the FCA can assess and collect from System institutions for our
administrative expenses.
---------------------------------------------------------------------------
Also, in February 2014, the Agricultural Act of 2014 (Farm Bill)
was signed into law.\6\ Section 5404 of the Farm Bill contained
``Findings by Congress'' that emphasized the benefit to System
stockholders' understanding of the operations of their institution
through disclosure of the institution's senior officer compensation,
and explained that transparent disclosure regarding compensation
practices reinforces the cooperative nature of System institutions.\7\
Also, the findings in Section 5404 of the Farm Bill placed primary
responsibility, and therefore accountability, for the establishment and
oversight of System institution compensation practices with each
institution's board of directors,\8\ and clearly linked the boards'
oversight responsibility for compensation to the overall safe and sound
operations of the respective institutions. Congress explained in the
Farm Bill that any regulation should strengthen the ability of System
institutions' boards of directors to oversee compensation practices.
Consistent with the aforementioned Congressional findings, the FCA will
continue to emphasize, through its regulatory and supervisory
authorities, the importance of providing comprehensive, transparent and
beneficial disclosures to stockholders on senior officer compensation.
We also intend to reinforce the responsibility and accountability of
System institutions' boards of directors in establishing and overseeing
compensation practices to ensure the safe and sound operation of the
institutions they serve.
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\6\ 113 Public Law 79, 128 Stat. 649 (H.R. 2642), signed by the
President on February 7, 2014.
\7\ As cooperatives, the System banks and associations are
borrower-owned financial institutions. Only those borrowers who are
farmers, ranchers, or producers or harvesters of aquatic products,
and cooperatives eligible to borrow from System institutions under
the Farm Credit Act of 1971, as amended, hold voting stock. Also,
System associations are voting stockholders of their affiliated Farm
Credit bank.
\8\ The voting stockholders of each System bank and association
elect a majority of its directors. The stockholder-elected directors
must constitute at least 60 percent of the members of each
institution's board.
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III. Interim Final Rulemaking and Non-Binding, Advisory Votes on
Compensation
With the promulgation of this rule, the FCA is using the ``Interim
Final'' rule procedure for rulemaking, which permits agencies to adopt
certain rules on an expedited basis, without going through the usual
proposal and final stages of notice-and-comment rulemaking. The
Administrative Procedure Act (APA) generally requires an agency to
publish notice of a proposed and final rulemaking in the Federal
Register. This requirement does not apply, however, when the agency
``for good cause finds . . . that notice and public procedure thereon
are impracticable, unnecessary, or contrary to the public interest.''
\9\
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\9\ See 5 U.S.C. 553(b). The APA, 5 U.S.C. 551-59, et seq.,
supports this streamlined technique of rulemaking.
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The FCA believes that the amendments contained in this rulemaking
fit the category of rules appropriate for interim final rulemaking. We
believe the provision in
[[Page 17856]]
Title VI of the Appropriations Act supports an interim final rulemaking
as the limitation arguably makes formal proposed and final rulemaking
procedures ``impracticable, unnecessary, or contrary to the public
interest.'' Further, we believe amending the rule to remove the
requirements for non-binding, advisory votes will ensure compliance
with the Appropriations Act. Consistent with the Appropriations Act, as
well as the Farm Bill, this interim final rulemaking is limited to the
advisory vote provisions of the October 3, 2012, (77 FR 60582)
rulemaking.
Specifically, we are removing the following rule provisions:
[ssquf] Sec. 611.100(a), defining the term ``advisory vote'';
[ssquf] Sec. 611.360, requiring policies and procedures for non-
binding, advisory votes on senior officer compensation;
[ssquf] Sec. 611.410, addressing non-binding, advisory votes on
senior officer compensation;
[ssquf] Sec. 620.5(a)(11), requiring disclosure of any advisory
votes held during the reporting year at the institution;
[ssquf] Sec. 620.6(c)(6), requiring disclosure (adjacent to the
compensation table) in the annual report of a stockholder's right to
petition for a non-binding, advisory vote on senior officer
compensation; and
[ssquf] Sec. 630.20(i)(last sentence), requiring disclosure of any
advisory votes held during the reporting year within the System.
All other regulatory provisions and changes resulting from the
October 3, 2012 (77 FR 60582) rulemaking remain in effect.
IV. Regulatory Flexibility Act
Pursuant to section 605(b) of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.), the FCA hereby certifies that this interim final
rule will not have a significant economic impact on a substantial
number of small entities. Each of the banks in the System, considered
together with its affiliated associations, has assets and annual income
in excess of the amounts that would qualify them as small entities.
Therefore, System institutions are not ``small entities'' as defined in
the Regulatory Flexibility Act.
List of Subjects
12 CFR Part 611
Agriculture, Banks, banking, Rural areas.
12 CFR Part 620
Accounting, Agriculture, Banks, banking, Reporting and
recordkeeping requirements, Rural areas.
12 CFR Part 630
Accounting, Agriculture, Banks, banking, Organization and functions
(Government agencies), Reporting and recordkeeping requirements, Rural
areas.
For the reasons stated in the preamble, parts 611, 620, and 630 of
chapter VI, title 12 of the Code of Federal Regulations are amended as
follows:
PART 611--ORGANIZATION
0
1. The authority citation for part 611 continues to read as follows:
Authority: Secs. 1.2, 1.3, 1.4, 1.5, 1.12, 1.13, 2.0, 2.1, 2.2,
2.10, 2.11, 2.12, 3.0, 3.1, 3.2, 3.3, 3.7, 3.8, 3.9, 3.21, 4.3A,
4.12, 4.12A, 4.15, 4.20, 4.21, 4.25, 4.26, 4.27, 4.28A, 5.9, 5.17,
5.25, 7.0-7.13, 8.5(e) of the Farm Credit Act (12 U.S.C. 2002, 2011,
2012, 2013, 2020, 2021, 2071, 2072, 2073, 2091, 2092, 2093, 2121,
2122, 2123, 2124, 2128, 2129, 2130, 2142, 2154a, 2183, 2184, 2203,
2208, 2209, 2211, 2212, 2213, 2214, 2243, 2252, 2261, 2279a-2279f-1,
2279aa-5(e)); secs. 411 and 412 of Pub. L. 100-233, 101 Stat. 1568,
1638; sec. 414 of Pub. L. 100-399, 102 Stat. 989, 1004.
Sec. 611.100 [Amended]
0
2. Section 611.100 is amended by removing paragraph (a) and
redesignating paragraphs (b) through (h) as new paragraphs (a) through
(g), respectively.
Sec. 611.360 [Removed and reserved]
0
3. Section 611.360 is removed and reserved.
Sec. 611.410 [Removed and reserved]
0
4. Section 611.410 is removed and reserved.
PART 620--DISCLOSURE TO SHAREHOLDERS
0
5. The authority citation for part 620 continues to read as follows:
Authority: Secs. 4.3, 4.3A, 4.19, 5.9, 5.17, 5.19 of the Farm
Credit Act (12 U.S.C. 2154, 2154a, 2207, 2243, 2252, 2254); sec. 424
of Pub. L. 100-233, 101 Stat. 1568, 1656; sec. 514 of Pub. L. 102-
552, 106 Stat. 4102.
Sec. 620.5 [Amended]
0
6. Section 620.5 is amended by removing paragraph (a)(11) and
redesignating paragraph (a)(12) as new paragraph (a)(11).
Sec. 620.6 [Amended]
0
7. Section 620.6 is amended by removing paragraph (c)(6) and
redesignating paragraph (c)(7) as new paragraph (c)(6).
PART 630--DISCLOSURE TO INVESTORS IN SYSTEM-WIDE AND CONSOLIDATED
BANK DEBT OBLIGATIONS OF THE FARM CREDIT SYSTEM
0
8. The authority citation for part 630 continues to read as follows:
Authority: Secs. 4.2, 4.9, 5.9, 5.17, 5.19 of the Farm Credit
Act (12 U.S.C. 2153, 2160, 2243, 2252, 2254); sec. 424 of Pub. L.
100-233, 101 Stat. 1568, 1656; sec. 514 of Pub. L. 102-552, 106
Stat. 4102.
Sec. 630.20 [Amended]
0
9. Section 630.20 is amended by removing the last sentence of paragraph
(i).
Dated: March 21, 2014.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2014-06783 Filed 3-28-14; 8:45 a.m.]
BILLING CODE 6705-01-P
