Regulatory Publication and Review Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996, 36252-36255 [2015-15472]
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Federal Register / Vol. 80, No. 121 / Wednesday, June 24, 2015 / Proposed Rules
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Care Information System 2 and the
APHIS annual report provide an
insufficient level of detail about animals
used for research. NAVS requested that
we amend the AWA reporting
regulations to require research facilities
to provide us with information about
how animals are being used for research
and experimentation and that we
publish this information in the annual
report of research facilities. NAVS also
requested that APHIS replace the
current reporting form 3 used by
research facilities with a template 4
comparable to that used by Member
States of the European Union (EU),
which provides an accounting of the
numbers and types of animals, and for
what specific research, testing, and
educational purposes the animals are
being used.
We are making this petition available
to the public and soliciting comments to
help determine what action, if any, to
take in response to this request. The
petition and any comments submitted
are available for review as indicated
under ADDRESSES above. We welcome
all comments on the issues outlined in
the petition. In particular, we invite
responses to the following questions:
1. Should APHIS amend the
regulations to require research facilities
that use animals for teaching, testing,
and experimentation to provide specific
information about how regulated
animals are used (for example, for safety
testing, teaching purposes, or disease
research)? Would reporting this
information improve animal welfare? If
so, how?
2. If research facilities were required
to report the purposes of their animal
research activities, what types of
information should be provided, and
why?
3. What might be the effects, if any,
on research facilities if they are required
to collect and report this additional
information?
4. Does the annual reporting form
currently required to be used by
research facilities capture sufficient
information? If not, what information is
missing?
We encourage the submission of
scientific data, studies, or research to
support your comments and position.
We also invite data on the costs and
benefits associated with any
2 Animal Care Information System (ACIS),
accessible at: https://acissearch.aphis.usda.gov/
LPASearch/faces/Warning.jspx.
3 Form 7023, Annual Report of Research Facility:
https://www.aphis.usda.gov/library/forms/pdf/
APHIS_7023.pdf.
4 The EU reporting template cited by NAVS can
be viewed at https://www.navs.org/file/APHISModified-Template_121214.xls.
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recommendations. We will consider all
comments we receive.
Authority: 7 U.S.C. 2131–2159; 7 CFR
2.22, 2.80, and 371.7.
Done in Washington, DC, this 18th day of
June 2015.
Kevin Shea,
Administrator, Animal and Plant Health
Inspection Service.
[FR Doc. 2015–15499 Filed 6–23–15; 8:45 am]
BILLING CODE 3410–34–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Chapter VII
Regulatory Publication and Review
Under the Economic Growth and
Regulatory Paperwork Reduction Act
of 1996
National Credit Union
Administration.
ACTION: Notice of regulatory review;
request for comments.
AGENCY:
The NCUA Board (Board) is
continuing its comprehensive review of
its regulations to identify outdated,
unnecessary, or burdensome regulatory
requirements imposed on federally
insured credit unions, as contemplated
by section 2222 of the Economic Growth
and Regulatory Paperwork Reduction
Act of 1996 (EGRPRA). This second
decennial review of regulations began
when the Board issued its first EGRPRA
notice on May 22, 2014, covering the
two categories of ‘‘Applications and
Reporting’’ and ‘‘Powers and
Activities.’’ The second notice followed,
covering the three categories of ‘‘Agency
Programs,’’ ‘‘Capital,’’ and ‘‘Consumer
Protection,’’ which was published on
December 19, 2014. The Board
continues the review process with the
publication of this third notice, covering
the next three categories of rules:
‘‘Corporate Credit Unions,’’ ‘‘Directors,
Officers and Employees,’’ and ‘‘Money
Laundering.’’ This review presents a
significant opportunity to consider the
possibilities for burden reduction in
groups of similar regulations. The Board
welcomes comment on the categories,
the order of review, and all other
aspects of this initiative in order to
maximize the review’s effectiveness.
DATES: Comment must be received on or
before September 22, 2015.
ADDRESSES: You may submit comments
by any of the following methods (Please
send comments by one method only):
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
SUMMARY:
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• NCUA Web site: https://
www.ncua.gov/
RegulationsOpinionsLaws/proposed_
regs/proposed_regs.html. Follow the
instructions for submitting comments.
• Email: Address to regcomments@
ncua.gov. Include ‘‘[Your name]
Comments on Regulatory Review
pursuant to EGRPRA’’ in the email
subject line.
• Fax: (703) 518–6319. Use the
subject line described above for email.
• Mail: Address to Gerard Poliquin,
Secretary of the Board, National Credit
Union Administration, 1775 Duke
Street, Alexandria, Virginia 22314–
3428.
• Hand Delivery/Courier: Same as
mail address.
Public Inspection: All public
comments are available on the agency’s
Web site at https://www.ncua.gov/Legal/
Regs/Pages/PropRegs.aspx as submitted,
except as may not be possible for
technical reasons. Public comments will
not be edited to remove any identifying
or contact information. Paper copies of
comments may be inspected in NCUA’s
law library at 1775 Duke Street,
Alexandria, Virginia 22314, by
appointment weekdays between 9:00
a.m. and 3:00 p.m. To make an
appointment, call (703) 518–6546 or
send an email to OGCMail@ncua.gov.
FOR FURTHER INFORMATION CONTACT: Ross
P. Kendall, Special Counsel to the
General Counsel, at the above address,
or telephone: (703) 518–6562.
SUPPLEMENTARY INFORMATION: This
second decennial review of regulations
began when the Board issued its first
EGRPRA notice on May 22, 2014,
covering the two categories of
‘‘Applications and Reporting’’ and
‘‘Powers and Activities.’’ 1 The second
notice followed, covering the three
categories of ‘‘Agency Programs,’’
‘‘Capital,’’ and ‘‘Consumer Protection,’’
which was published on December 19,
2014.2
I. Introduction
Congress enacted EGRPRA 3 as part of
an effort to minimize unnecessary
government regulation of financial
institutions consistent with safety and
soundness, consumer protection, and
other public policy goals. Under
EGRPRA, the appropriate federal
banking agencies (Office of the
Comptroller of the Currency, Board of
Governors of the Federal Reserve
System, and Federal Deposit Insurance
1 79
FR 32121 (June 4, 2014)
FR 79763 (December 19, 2014)
3 Pub. L. 104–208, Div. A, Title II, section 2222,
110 Stat. 3009 (1996); codified at 12 U.S.C. 3311.
2 79
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Corporation; herein Agencies 4) and the
Federal Financial Institutions
Examination Council (FFIEC) must
review their regulations to identify
outdated, unnecessary, or unduly
burdensome requirements imposed on
insured depository institutions. The
Agencies are required, jointly or
individually, to categorize regulations
by type, such as ‘‘consumer regulations’’
or ‘‘safety and soundness’’ regulations.
Once the categories have been
established, the Agencies must provide
notice and ask for public comment on
one or more of these regulatory
categories.
NCUA is not technically required to
participate in the EGRPRA review
process, since NCUA is not an
‘‘appropriate Federal banking agency’’
as specified in EGRPRA. In keeping
with the spirit of the law, however, the
Board has once again elected to
participate in the review process. Thus,
NCUA has participated along with the
Agencies in the planning process, but
has developed its own regulatory
categories that are comparable with
those developed by the Agencies.
Because of the unique circumstances of
federally insured credit unions and their
members, the Board is issuing a separate
notice from the Agencies. NCUA’s
notice is consistent and comparable
with the Agencies’ notice, except on
issues that are unique to credit unions.
One such unique issue, corporate credit
unions, is included in this third notice.
In accordance with the objectives of
EGRPRA, the Board asks the public to
identify areas of its regulations that are
outdated, unnecessary, or unduly
burdensome. In addition to this third
notice, the Board will issue one more
notice for comment later on during
2015. The EGRPRA review supplements
and complements the reviews of
regulations that NCUA conducts under
other laws and its internal policies.5
As the Board noted in its initial
EGRPRA notice, the creation of the
Consumer Financial Protection Bureau
(CFPB) resulted in the transfer to it of
responsibility for certain consumer
protection rules that had previously
been the responsibility of the Agencies
and/or NCUA, such as Regulation Z and
rules governing consumer privacy.
4 The Office of Thrift Supervision was still in
existence at the time EGRPRA was enacted and was
included in the listing of Agencies. Since that time,
the OTS has been eliminated and its responsibilities
have passed to the Agencies and the Consumer
Financial Protection Bureau.
5 Interpretive Ruling and Policy Statement (IRPS)
87–2, 52 FR 35231 (Sept. 8, 1987) as amended by
IRPS 03–2, 68 FR 32127 (May 29, 2003.) (Reflecting
NCUA’s commitment to ‘‘periodically update,
clarify and simplify existing regulations and
eliminate redundant and unnecessary provisions.’’)
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Because the CFPB is not covered by
EGRPRA or required to participate in
this regulatory review process, the
Agencies and NCUA excluded certain
consumer protection regulations from
the scope of the current review.6
EGRPRA contemplates a two-part
regulatory response. First, NCUA will
publish in the Federal Register a
summary of the comments received,
identifying and discussing the
significant issues raised. Second, the
law directs the Agencies to ‘‘eliminate
unnecessary regulations to the extent
that such action is appropriate.’’ As was
done during the initial decennial review
process, the Board anticipates that it
will prepare its response separately
from the Agencies, but at around the
same time.
EGRPRA further requires the FFIEC to
submit a report to the Congress within
30 days after NCUA and the Agencies
publish the comment summary and
analysis in the Federal Register. This
report must summarize any significant
issues raised by the public comments
and the relative merits of those issues.
The report also must analyze whether
the appropriate federal financial
regulator involved is able to address the
regulatory burdens associated with the
issues by regulation, or whether the
burdens must be addressed by
legislation. The FFIEC report submitted
to Congress following the initial
decennial EGRPRA review included an
Agency section discussing banking
sector issues and a separate section
devoted to NCUA and credit union
issues. It is likely that the FFIEC will
follow a similar approach in this second
decennial EGRPRA review and report
process.
II. The EGRPRA Review’s Special
Focus
The regulatory review contemplated
by EGRPRA provides a significant
opportunity for the public and the
Board to consider groups of related
regulations and identify possibilities for
streamlining. The EGRPRA review’s
overall focus on the totality of
regulations will offer a new perspective
in identifying opportunities to reduce
regulatory burden. For example, the
EGRPRA review may facilitate the
identification of regulatory requirements
that are no longer consistent with the
6 In addition to rules that have been transferred
to the CFPB, insured credit unions are also subject
to certain other regulations that are not required to
be reviewed under the EGRPRA process, such as
regulations issued by the Department of the
Treasury’s Financial Crimes Enforcement Network.
Any comment received during the EGRPRA process
that pertains to such a rule will be forwarded to the
appropriate agency.
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36253
way business is conducted and that
therefore might be eliminated. Of
course, reducing regulatory burden must
be consistent with ensuring the
continued safety and soundness of
federally insured credit unions and
appropriate consumer protections.
EGRPRA also recognizes that burden
reduction must be consistent with
NCUA’s statutory mandates, many of
which currently require certain
regulations. One of the significant
aspects of the EGRPRA review program
is the recognition that effective burden
reduction in certain areas may require
legislative change. The Board will be
soliciting comment on, and reviewing
the comments and regulations carefully
for, the relationship among burden
reduction, regulatory requirements, and
statutory mandates. This will be a key
aspect of the report to Congress.
The Board views the approach of
considering the relationship of
regulatory and statutory change on
regulatory burden, in concert with
EGRPRA’s provisions calling for
grouping regulations by type, to provide
the potential for particularly effective
burden reduction. The Board believes
the EGRPRA review can also
significantly contribute to its on-going
efforts to reduce regulatory burden.
Since 1987, a formally adopted NCUA
policy has required the Board to review
each of its regulations at least once
every three years with a view toward
eliminating, simplifying, or otherwise
easing the burden of each regulation.7
Further, the Board addresses the issue of
regulatory burden every time it proposes
and adopts a rule. Under the Paperwork
Reduction Act of 1995,8 the Regulatory
Flexibility Act,9 and internal agency
policies, NCUA examines each
rulemaking to minimize the burdens it
might impose on the industry and
considers various alternatives.
The Board is particularly sensitive to
the impact of agency rules on small
institutions. In 2013, the Board formally
increased the threshold for meeting the
‘‘small’’ classification to having assets of
$50 million or less.10 The Board is
cognizant that each new or amended
regulation has the potential for requiring
significant expenditures of time, effort,
and money to achieve compliance, and
also that this burden can be particularly
7 IRPS 87–2, 52 FR 35231 (Sept. 8, 1987) as
amended by IRPS 03–2, 68 FR 32127 (May 29,
2003).
8 44 U.S.C. 3501 et seq.
9 5 U.S.C. 601 et seq.
10 In February 2015, the Board proposed raising
the threshold again, this time to $100 million. 80
FR 11954 (Mar. 5, 2015). The Board has not yet
taken final action with respect to the proposal.
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difficult for institutions of smaller asset
size, with fewer resources available.
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III. The Board’s Proposed Plan
EGRPRA contemplates the
categorization of regulations by ‘‘type.’’
During the initial decennial review, the
Board developed and published for
comment ten categories for NCUA’s
rules, including some that had been
issued jointly with the Agencies. The
Board believes these initial categories
worked well for the purpose of
presenting a framework for the review
and so has retained them for this second
review.11 The categories, in alphabetical
order, are: Agency Programs;
Applications and Reporting; Capital;
Consumer Protection; Corporate Credit
Unions; Directors, Officers and
Employees; Money Laundering; Powers
and Activities; Rules of Procedure; and
Safety and Soundness. As noted above,
some of the rules in the consumer
protection category are now under
CFPB’s jurisdiction and administration,
and those affected rules have been
eliminated. Any rules adopted for the
first time since 2006 have been included
in the appropriate category.12 Rules still
in proposed form are not included in
this review; commenters may be sure
that comments submitted directly in
response to proposed rules will be given
due consideration within that process.
As the Board noted during the initial
decennial review, although there are
other possible ways of categorizing its
rules, these ten categories ‘‘are logical
groupings that are not so broad such
that the number of regulations presented
in any one category would overwhelm
potential commenters. The categories
also reflect recognized areas of industry
interest and specialization or are
particularly critical to the health of the
credit union system.’’ As was also noted
during the initial review, some
regulations, such as lending, pertain to
more than one category and are
included in all applicable categories.
The Board remains convinced that
publishing its rules for public comment
separately from the Agencies is the most
effective method for achieving
EGRPRA’s burden reduction goals for
federally insured credit unions. Owing
to differences in the credit union system
as compared to the banking system,
there is not a direct, category by
11 Consistent with EGRPRA’s focus on reducing
burden on insured credit unions, the Board has not
included internal, organizational or operational
regulations in this review. These regulations impose
minimal, if any, burden on insured credit unions.
12 Commenters should note, in this respect, that
for new regulations that have only recently gone
into effect, some passage of time may be necessary
before the burden associated with the regulatory
requirements can be fully and properly understood.
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category, correlation between NCUA’s
rules and those of the Agencies. For
example, credit unions deal with issues
such as membership, credit union
service organizations, and corporate
credit unions, all of which are unique to
credit union operations. Similarly,
certain categories identified by the
Agencies have limited or no
applicability in the credit union sector,
such as community reinvestment,
international operations, and securities.
The categories developed by the Board
and the Agencies reflect these
differences. The Board intends to
maintain comparability with the
Agencies’ notices to the extent there is
overlap or similarity in the issues and
the categories.
After the conclusion of the comment
period for each EGRPRA notice
published in the Federal Register, the
Board will review the comments it has
received and decide whether further
action is appropriate with respect to the
categories of regulations included in
that notice.
The Board has prepared two charts to
assist public understanding of the
organization of its review. The first
chart, set forth at Section V.A. below,
presents the three categories of
regulations on which NCUA is
requesting burden reduction
recommendations in this notice. The
three categories are shown in the left
column. In the middle column are the
subject matters that fall within the
categories and in the far right column
are the regulatory citations. The second
chart, set forth at Section V.B. below,
presents the remaining two categories in
alphabetical order in a similar format.
IV. Request for Burden Reduction
Recommendations About the Categories
of Regulations: ‘‘Corporate Credit
Unions,’’ ‘‘Directors, Officers, and
Employees,’’ and ‘‘Money Laundering’’
The Board seeks public comment on
regulations within the following three
categories—‘‘Corporate Credit Unions,’’
‘‘Directors, Officers, and Employees,’’
and ‘‘Money Laundering’’— that may
impose outdated, unnecessary, or
unduly burdensome regulatory
requirements on federally insured credit
unions. Comments that cite particular
provisions or language, and provide
reasons why such provisions should be
changed, would be most helpful to
NCUA’s review efforts. Suggested
alternative provisions or language,
where appropriate, would also be
helpful. If the implementation of a
comment would require modifying a
statute that underlies the regulation, the
comment should, if possible, identify
the needed statutory change.
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Specific issues for commenters to
consider. While all comments related to
any aspect of the EGRPRA review are
welcome, the Board specifically invites
comment on the following issues:
• Need and purpose of the
regulations. Do the regulations in these
categories fulfill current needs? Has
industry or other circumstances
changed since a regulation was written
such that the regulation is no longer
necessary? Have there been shifts within
the industry or consumer actions that
suggest a re-focus of the underlying
regulations? Do any of the regulations in
these categories impose burdens not
required by their authorizing statutes?
• Need for statutory change. Do the
statutes impose unnecessary
requirements? Are any of the statutory
requirements underlying these
categories redundant, conflicting or
otherwise unduly burdensome? If so,
how should the statutes be amended?
• Overarching approaches/flexibility
of the regulatory standards. Generally, is
there a different approach to regulating
that the Board could use that would
achieve statutory goals while imposing
less burden? Do any of the regulations
in these categories or the statutes
underlying them impose unnecessarily
inflexible requirements?
• Effect of the regulations on
competition. Do any of the regulations
in these categories or the statutes
underlying them create competitive
disadvantages for credit unions
compared to another part of the
financial services industry? If so, how
should these regulations be amended?
• Reporting, recordkeeping and
disclosure requirements. Do any of the
regulations in these categories or the
statutes underlying them impose
particularly burdensome reporting,
recordkeeping or disclosure
requirements? Are any of these
requirements similar enough in purpose
and use so that they could be
consolidated? What, if any, of these
requirements could be fulfilled
electronically to reduce their burden?
Please provide specific
recommendations.
• Consistency and redundancy. Do
any of the regulations in these categories
impose inconsistent or redundant
regulatory requirements that are not
warranted by the circumstances?
• Clarity. Are the regulations in these
categories and the underlying statutes
drafted in clear and easily understood
language? Are there specific regulations
or underlying statutes that need
clarification?
• Scope of rules. Is the scope of each
rule in these categories consistent with
the intent of the underlying statute(s)?
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Could we amend the scope of a rule to
clarify its applicability or to reduce the
burden, while remaining faithful to
statutory intent? If so, specify which
regulation(s) should be clarified.
• Burden on small insured
institutions. The Board has a particular
interest in minimizing burden on small
insured credit unions (those with less
than $50 million in assets). NCUA
solicits comment on whether any
regulations within these categories
should be continued without change,
amended or rescinded in order to
36255
minimize any significant economic
impact the regulations may have on a
substantial number of small federally
insured credit unions.
V.A.—REGULATIONS ABOUT WHICH BURDEN REDUCTION RECOMMENDATIONS ARE REQUESTED CURRENTLY
Corporate Credit Unions .................
Directors, Officers, and Employees
Money Laundering ..........................
Corporate credit unions .........................................................................
Loans and lines of credit to officials ......................................................
Reimbursement, insurance, and indemnification of officials and employees.
Retirement benefits for employees ........................................................
Management officials interlock ..............................................................
Fidelity bond and insurance coverage ..................................................
General authorities and duties of federal credit union directors ...........
Golden parachutes and indemnification payments ...............................
Report of crimes or suspected crimes ..................................................
Bank Secrecy Act ..................................................................................
12 CFR 704.
12 CFR 701.21(d).
12 CFR 701.33.
12
12
12
12
12
12
12
CFR
CFR
CFR
CFR
CFR
CFR
CFR
701.19.
711.
713.
701.4.
750.
748.1.
748.2.
V.B.—CATEGORIES AND REGULATIONS ABOUT WHICH NCUA WILL SEEK COMMENT LATER
Rules of Procedure .........................
Safety and Soundness ....................
Liquidation (involuntary and voluntary) ..................................................
Uniform rules of practice and procedure ...............................................
Local rules of practice and procedure ...................................................
Lending ..................................................................................................
Investments ............................................................................................
Supervisory committee audit .................................................................
Security programs ..................................................................................
Guidelines for safeguarding member information and responding to
unauthorized access to member information.
Records preservation program and record retention appendix ............
Appraisals ..............................................................................................
Examination ...........................................................................................
Liquidity and contingency funding plans ...............................................
Regulations codified elsewhere in NCUA’s regulations as applying to
federal credit unions that also apply to federally insured state-chartered credit unions.
By the National Credit Union
Administration Board on June 18, 2015.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2015–15472 Filed 6–23–15; 8:45 am]
BILLING CODE 7535–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2015–1984; Directorate
Identifier 2015–NM–022–AD]
RIN 2120–AA64
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Airworthiness Directives; The Boeing
Company Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
We propose to supersede
Airworthiness Directive (AD) 2005–01–
09, which applies to certain The Boeing
SUMMARY:
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Company Model 747–100, 747–100B,
747–100B SUD, 747–200B, 747–200C,
747–200F, 747–300, 747–400, 747–
400D, 747–400F, and 747SR series
airplanes. AD 2005–01–09 requires a
one-time detailed inspection for
discrepancies of the frame web and
inner chords on the forward edge frame
of the number 5 main entry door cutout,
and corrective action if necessary. Since
we issued AD 2005–01–09, additional
cracking was found in the same area
after completion of the one-time
detailed inspection. This proposed AD
would add repetitive high frequency
eddy current inspections for cracking of
the frame inner chords (forward and
aft), and corrective action if necessary.
We are proposing this AD to detect and
correct discrepancies of the frame web
and inner chords, which could result in
cracking, subsequent severing of the
frame, and consequent rapid
depressurization of the airplane.
DATES: We must receive comments on
this proposed AD by August 10, 2015.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
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12
12
12
12
12
12
12
12
CFR
CFR
CFR
CFR
CFR
CFR
CFR
CFR
709 and 710.
747, subpart A.
747, subpart B.
701.21.
703.
715.
748.0.
748, Appendices A and B.
12
12
12
12
12
CFR
CFR
CFR
CFR
CFR
749.
722.
741.1.
741.12.
741, subpart B.
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: 202–493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE.,
Washington, DC 20590.
• Hand Delivery: Deliver to Mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
For service information identified in
this proposed AD, contact Boeing
Commercial Airplanes, Attention: Data
& Services Management, P.O. Box 3707,
MC 2H–65, Seattle, WA 98124–2207;
telephone 206–544–5000, extension 1;
fax 206–766–5680; Internet https://
www.myboeingfleet.com. You may view
this referenced service information at
the FAA, Transport Airplane
Directorate, 1601 Lind Avenue SW.,
Renton, WA. For information on the
availability of this material at the FAA,
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]]>Agencies
[Federal Register Volume 80, Number 121 (Wednesday, June 24, 2015)]
[Proposed Rules]
[Pages 36252-36255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15472]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Chapter VII
Regulatory Publication and Review Under the Economic Growth and
Regulatory Paperwork Reduction Act of 1996
AGENCY: National Credit Union Administration.
ACTION: Notice of regulatory review; request for comments.
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SUMMARY: The NCUA Board (Board) is continuing its comprehensive review
of its regulations to identify outdated, unnecessary, or burdensome
regulatory requirements imposed on federally insured credit unions, as
contemplated by section 2222 of the Economic Growth and Regulatory
Paperwork Reduction Act of 1996 (EGRPRA). This second decennial review
of regulations began when the Board issued its first EGRPRA notice on
May 22, 2014, covering the two categories of ``Applications and
Reporting'' and ``Powers and Activities.'' The second notice followed,
covering the three categories of ``Agency Programs,'' ``Capital,'' and
``Consumer Protection,'' which was published on December 19, 2014. The
Board continues the review process with the publication of this third
notice, covering the next three categories of rules: ``Corporate Credit
Unions,'' ``Directors, Officers and Employees,'' and ``Money
Laundering.'' This review presents a significant opportunity to
consider the possibilities for burden reduction in groups of similar
regulations. The Board welcomes comment on the categories, the order of
review, and all other aspects of this initiative in order to maximize
the review's effectiveness.
DATES: Comment must be received on or before September 22, 2015.
ADDRESSES: You may submit comments by any of the following methods
(Please send comments by one method only):
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
NCUA Web site: https://www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/proposed_regs.html. Follow the
instructions for submitting comments.
Email: Address to regcomments@ncua.gov. Include ``[Your
name] Comments on Regulatory Review pursuant to EGRPRA'' in the email
subject line.
Fax: (703) 518-6319. Use the subject line described above
for email.
Mail: Address to Gerard Poliquin, Secretary of the Board,
National Credit Union Administration, 1775 Duke Street, Alexandria,
Virginia 22314-3428.
Hand Delivery/Courier: Same as mail address.
Public Inspection: All public comments are available on the
agency's Web site at https://www.ncua.gov/Legal/Regs/Pages/PropRegs.aspx
as submitted, except as may not be possible for technical reasons.
Public comments will not be edited to remove any identifying or contact
information. Paper copies of comments may be inspected in NCUA's law
library at 1775 Duke Street, Alexandria, Virginia 22314, by appointment
weekdays between 9:00 a.m. and 3:00 p.m. To make an appointment, call
(703) 518-6546 or send an email to OGCMail@ncua.gov.
FOR FURTHER INFORMATION CONTACT: Ross P. Kendall, Special Counsel to
the General Counsel, at the above address, or telephone: (703) 518-
6562.
SUPPLEMENTARY INFORMATION: This second decennial review of regulations
began when the Board issued its first EGRPRA notice on May 22, 2014,
covering the two categories of ``Applications and Reporting'' and
``Powers and Activities.'' \1\ The second notice followed, covering the
three categories of ``Agency Programs,'' ``Capital,'' and ``Consumer
Protection,'' which was published on December 19, 2014.\2\
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\1\ 79 FR 32121 (June 4, 2014)
\2\ 79 FR 79763 (December 19, 2014)
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I. Introduction
Congress enacted EGRPRA \3\ as part of an effort to minimize
unnecessary government regulation of financial institutions consistent
with safety and soundness, consumer protection, and other public policy
goals. Under EGRPRA, the appropriate federal banking agencies (Office
of the Comptroller of the Currency, Board of Governors of the Federal
Reserve System, and Federal Deposit Insurance
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Corporation; herein Agencies \4\) and the Federal Financial
Institutions Examination Council (FFIEC) must review their regulations
to identify outdated, unnecessary, or unduly burdensome requirements
imposed on insured depository institutions. The Agencies are required,
jointly or individually, to categorize regulations by type, such as
``consumer regulations'' or ``safety and soundness'' regulations. Once
the categories have been established, the Agencies must provide notice
and ask for public comment on one or more of these regulatory
categories.
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\3\ Pub. L. 104-208, Div. A, Title II, section 2222, 110 Stat.
3009 (1996); codified at 12 U.S.C. 3311.
\4\ The Office of Thrift Supervision was still in existence at
the time EGRPRA was enacted and was included in the listing of
Agencies. Since that time, the OTS has been eliminated and its
responsibilities have passed to the Agencies and the Consumer
Financial Protection Bureau.
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NCUA is not technically required to participate in the EGRPRA
review process, since NCUA is not an ``appropriate Federal banking
agency'' as specified in EGRPRA. In keeping with the spirit of the law,
however, the Board has once again elected to participate in the review
process. Thus, NCUA has participated along with the Agencies in the
planning process, but has developed its own regulatory categories that
are comparable with those developed by the Agencies. Because of the
unique circumstances of federally insured credit unions and their
members, the Board is issuing a separate notice from the Agencies.
NCUA's notice is consistent and comparable with the Agencies' notice,
except on issues that are unique to credit unions. One such unique
issue, corporate credit unions, is included in this third notice.
In accordance with the objectives of EGRPRA, the Board asks the
public to identify areas of its regulations that are outdated,
unnecessary, or unduly burdensome. In addition to this third notice,
the Board will issue one more notice for comment later on during 2015.
The EGRPRA review supplements and complements the reviews of
regulations that NCUA conducts under other laws and its internal
policies.\5\
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\5\ Interpretive Ruling and Policy Statement (IRPS) 87-2, 52 FR
35231 (Sept. 8, 1987) as amended by IRPS 03-2, 68 FR 32127 (May 29,
2003.) (Reflecting NCUA's commitment to ``periodically update,
clarify and simplify existing regulations and eliminate redundant
and unnecessary provisions.'')
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As the Board noted in its initial EGRPRA notice, the creation of
the Consumer Financial Protection Bureau (CFPB) resulted in the
transfer to it of responsibility for certain consumer protection rules
that had previously been the responsibility of the Agencies and/or
NCUA, such as Regulation Z and rules governing consumer privacy.
Because the CFPB is not covered by EGRPRA or required to participate in
this regulatory review process, the Agencies and NCUA excluded certain
consumer protection regulations from the scope of the current
review.\6\
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\6\ In addition to rules that have been transferred to the CFPB,
insured credit unions are also subject to certain other regulations
that are not required to be reviewed under the EGRPRA process, such
as regulations issued by the Department of the Treasury's Financial
Crimes Enforcement Network. Any comment received during the EGRPRA
process that pertains to such a rule will be forwarded to the
appropriate agency.
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EGRPRA contemplates a two-part regulatory response. First, NCUA
will publish in the Federal Register a summary of the comments
received, identifying and discussing the significant issues raised.
Second, the law directs the Agencies to ``eliminate unnecessary
regulations to the extent that such action is appropriate.'' As was
done during the initial decennial review process, the Board anticipates
that it will prepare its response separately from the Agencies, but at
around the same time.
EGRPRA further requires the FFIEC to submit a report to the
Congress within 30 days after NCUA and the Agencies publish the comment
summary and analysis in the Federal Register. This report must
summarize any significant issues raised by the public comments and the
relative merits of those issues. The report also must analyze whether
the appropriate federal financial regulator involved is able to address
the regulatory burdens associated with the issues by regulation, or
whether the burdens must be addressed by legislation. The FFIEC report
submitted to Congress following the initial decennial EGRPRA review
included an Agency section discussing banking sector issues and a
separate section devoted to NCUA and credit union issues. It is likely
that the FFIEC will follow a similar approach in this second decennial
EGRPRA review and report process.
II. The EGRPRA Review's Special Focus
The regulatory review contemplated by EGRPRA provides a significant
opportunity for the public and the Board to consider groups of related
regulations and identify possibilities for streamlining. The EGRPRA
review's overall focus on the totality of regulations will offer a new
perspective in identifying opportunities to reduce regulatory burden.
For example, the EGRPRA review may facilitate the identification of
regulatory requirements that are no longer consistent with the way
business is conducted and that therefore might be eliminated. Of
course, reducing regulatory burden must be consistent with ensuring the
continued safety and soundness of federally insured credit unions and
appropriate consumer protections.
EGRPRA also recognizes that burden reduction must be consistent
with NCUA's statutory mandates, many of which currently require certain
regulations. One of the significant aspects of the EGRPRA review
program is the recognition that effective burden reduction in certain
areas may require legislative change. The Board will be soliciting
comment on, and reviewing the comments and regulations carefully for,
the relationship among burden reduction, regulatory requirements, and
statutory mandates. This will be a key aspect of the report to
Congress.
The Board views the approach of considering the relationship of
regulatory and statutory change on regulatory burden, in concert with
EGRPRA's provisions calling for grouping regulations by type, to
provide the potential for particularly effective burden reduction. The
Board believes the EGRPRA review can also significantly contribute to
its on-going efforts to reduce regulatory burden. Since 1987, a
formally adopted NCUA policy has required the Board to review each of
its regulations at least once every three years with a view toward
eliminating, simplifying, or otherwise easing the burden of each
regulation.\7\ Further, the Board addresses the issue of regulatory
burden every time it proposes and adopts a rule. Under the Paperwork
Reduction Act of 1995,\8\ the Regulatory Flexibility Act,\9\ and
internal agency policies, NCUA examines each rulemaking to minimize the
burdens it might impose on the industry and considers various
alternatives.
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\7\ IRPS 87-2, 52 FR 35231 (Sept. 8, 1987) as amended by IRPS
03-2, 68 FR 32127 (May 29, 2003).
\8\ 44 U.S.C. 3501 et seq.
\9\ 5 U.S.C. 601 et seq.
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The Board is particularly sensitive to the impact of agency rules
on small institutions. In 2013, the Board formally increased the
threshold for meeting the ``small'' classification to having assets of
$50 million or less.\10\ The Board is cognizant that each new or
amended regulation has the potential for requiring significant
expenditures of time, effort, and money to achieve compliance, and also
that this burden can be particularly
[[Page 36254]]
difficult for institutions of smaller asset size, with fewer resources
available.
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\10\ In February 2015, the Board proposed raising the threshold
again, this time to $100 million. 80 FR 11954 (Mar. 5, 2015). The
Board has not yet taken final action with respect to the proposal.
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III. The Board's Proposed Plan
EGRPRA contemplates the categorization of regulations by ``type.''
During the initial decennial review, the Board developed and published
for comment ten categories for NCUA's rules, including some that had
been issued jointly with the Agencies. The Board believes these initial
categories worked well for the purpose of presenting a framework for
the review and so has retained them for this second review.\11\ The
categories, in alphabetical order, are: Agency Programs; Applications
and Reporting; Capital; Consumer Protection; Corporate Credit Unions;
Directors, Officers and Employees; Money Laundering; Powers and
Activities; Rules of Procedure; and Safety and Soundness. As noted
above, some of the rules in the consumer protection category are now
under CFPB's jurisdiction and administration, and those affected rules
have been eliminated. Any rules adopted for the first time since 2006
have been included in the appropriate category.\12\ Rules still in
proposed form are not included in this review; commenters may be sure
that comments submitted directly in response to proposed rules will be
given due consideration within that process.
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\11\ Consistent with EGRPRA's focus on reducing burden on
insured credit unions, the Board has not included internal,
organizational or operational regulations in this review. These
regulations impose minimal, if any, burden on insured credit unions.
\12\ Commenters should note, in this respect, that for new
regulations that have only recently gone into effect, some passage
of time may be necessary before the burden associated with the
regulatory requirements can be fully and properly understood.
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As the Board noted during the initial decennial review, although
there are other possible ways of categorizing its rules, these ten
categories ``are logical groupings that are not so broad such that the
number of regulations presented in any one category would overwhelm
potential commenters. The categories also reflect recognized areas of
industry interest and specialization or are particularly critical to
the health of the credit union system.'' As was also noted during the
initial review, some regulations, such as lending, pertain to more than
one category and are included in all applicable categories.
The Board remains convinced that publishing its rules for public
comment separately from the Agencies is the most effective method for
achieving EGRPRA's burden reduction goals for federally insured credit
unions. Owing to differences in the credit union system as compared to
the banking system, there is not a direct, category by category,
correlation between NCUA's rules and those of the Agencies. For
example, credit unions deal with issues such as membership, credit
union service organizations, and corporate credit unions, all of which
are unique to credit union operations. Similarly, certain categories
identified by the Agencies have limited or no applicability in the
credit union sector, such as community reinvestment, international
operations, and securities. The categories developed by the Board and
the Agencies reflect these differences. The Board intends to maintain
comparability with the Agencies' notices to the extent there is overlap
or similarity in the issues and the categories.
After the conclusion of the comment period for each EGRPRA notice
published in the Federal Register, the Board will review the comments
it has received and decide whether further action is appropriate with
respect to the categories of regulations included in that notice.
The Board has prepared two charts to assist public understanding of
the organization of its review. The first chart, set forth at Section
V.A. below, presents the three categories of regulations on which NCUA
is requesting burden reduction recommendations in this notice. The
three categories are shown in the left column. In the middle column are
the subject matters that fall within the categories and in the far
right column are the regulatory citations. The second chart, set forth
at Section V.B. below, presents the remaining two categories in
alphabetical order in a similar format.
IV. Request for Burden Reduction Recommendations About the Categories
of Regulations: ``Corporate Credit Unions,'' ``Directors, Officers, and
Employees,'' and ``Money Laundering''
The Board seeks public comment on regulations within the following
three categories--``Corporate Credit Unions,'' ``Directors, Officers,
and Employees,'' and ``Money Laundering''-- that may impose outdated,
unnecessary, or unduly burdensome regulatory requirements on federally
insured credit unions. Comments that cite particular provisions or
language, and provide reasons why such provisions should be changed,
would be most helpful to NCUA's review efforts. Suggested alternative
provisions or language, where appropriate, would also be helpful. If
the implementation of a comment would require modifying a statute that
underlies the regulation, the comment should, if possible, identify the
needed statutory change.
Specific issues for commenters to consider. While all comments
related to any aspect of the EGRPRA review are welcome, the Board
specifically invites comment on the following issues:
Need and purpose of the regulations. Do the regulations in
these categories fulfill current needs? Has industry or other
circumstances changed since a regulation was written such that the
regulation is no longer necessary? Have there been shifts within the
industry or consumer actions that suggest a re-focus of the underlying
regulations? Do any of the regulations in these categories impose
burdens not required by their authorizing statutes?
Need for statutory change. Do the statutes impose
unnecessary requirements? Are any of the statutory requirements
underlying these categories redundant, conflicting or otherwise unduly
burdensome? If so, how should the statutes be amended?
Overarching approaches/flexibility of the regulatory
standards. Generally, is there a different approach to regulating that
the Board could use that would achieve statutory goals while imposing
less burden? Do any of the regulations in these categories or the
statutes underlying them impose unnecessarily inflexible requirements?
Effect of the regulations on competition. Do any of the
regulations in these categories or the statutes underlying them create
competitive disadvantages for credit unions compared to another part of
the financial services industry? If so, how should these regulations be
amended?
Reporting, recordkeeping and disclosure requirements. Do
any of the regulations in these categories or the statutes underlying
them impose particularly burdensome reporting, recordkeeping or
disclosure requirements? Are any of these requirements similar enough
in purpose and use so that they could be consolidated? What, if any, of
these requirements could be fulfilled electronically to reduce their
burden? Please provide specific recommendations.
Consistency and redundancy. Do any of the regulations in
these categories impose inconsistent or redundant regulatory
requirements that are not warranted by the circumstances?
Clarity. Are the regulations in these categories and the
underlying statutes drafted in clear and easily understood language?
Are there specific regulations or underlying statutes that need
clarification?
Scope of rules. Is the scope of each rule in these
categories consistent with the intent of the underlying statute(s)?
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Could we amend the scope of a rule to clarify its applicability or to
reduce the burden, while remaining faithful to statutory intent? If so,
specify which regulation(s) should be clarified.
Burden on small insured institutions. The Board has a
particular interest in minimizing burden on small insured credit unions
(those with less than $50 million in assets). NCUA solicits comment on
whether any regulations within these categories should be continued
without change, amended or rescinded in order to minimize any
significant economic impact the regulations may have on a substantial
number of small federally insured credit unions.
V.A.--Regulations About Which Burden Reduction Recommendations Are
Requested Currently
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Corporate Credit Unions....... Corporate credit 12 CFR 704.
unions.
Directors, Officers, and Loans and lines of 12 CFR
Employees. credit to officials. 701.21(d).
Reimbursement, 12 CFR 701.33.
insurance, and
indemnification of
officials and
employees.
Retirement benefits 12 CFR 701.19.
for employees.
Management officials 12 CFR 711.
interlock.
Fidelity bond and 12 CFR 713.
insurance coverage.
General authorities 12 CFR 701.4.
and duties of federal
credit union
directors.
Golden parachutes and 12 CFR 750.
indemnification
payments.
Money Laundering.............. Report of crimes or 12 CFR 748.1.
suspected crimes.
Bank Secrecy Act...... 12 CFR 748.2.
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V.B.--Categories and Regulations About Which NCUA Will Seek Comment
Later
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Rules of Procedure............ Liquidation 12 CFR 709 and
(involuntary and 710.
voluntary).
Uniform rules of 12 CFR 747,
practice and subpart A.
procedure.
Local rules of 12 CFR 747,
practice and subpart B.
procedure.
Safety and Soundness.......... Lending............... 12 CFR 701.21.
Investments........... 12 CFR 703.
Supervisory committee 12 CFR 715.
audit.
Security programs..... 12 CFR 748.0.
Guidelines for 12 CFR 748,
safeguarding member Appendices A
information and and B.
responding to
unauthorized access
to member information.
Records preservation 12 CFR 749.
program and record
retention appendix.
Appraisals............ 12 CFR 722.
Examination........... 12 CFR 741.1.
Liquidity and 12 CFR 741.12.
contingency funding
plans.
Regulations codified 12 CFR 741,
elsewhere in NCUA's subpart B.
regulations as
applying to federal
credit unions that
also apply to
federally insured
state-chartered
credit unions.
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By the National Credit Union Administration Board on June 18,
2015.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2015-15472 Filed 6-23-15; 8:45 am]
BILLING CODE 7535-01-P
