Accuracy of Advertising and Notice of Insured Status, 46173-46174 [2017-21316]
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46173
Proposed Rules
Federal Register
Vol. 82, No. 191
Wednesday, October 4, 2017
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 740
RIN 3133–AE78
Accuracy of Advertising and Notice of
Insured Status
National Credit Union
Administration (NCUA).
ACTION: Proposed rule with request for
comments.
AGENCY:
The NCUA Board (Board)
proposes to revise certain provisions of
NCUA’s advertising rule to provide
regulatory relief to federally insured
credit unions (FICUs). The advertising
rule requires FICUs to use NCUA’s
‘‘official advertisement statement’’ when
advertising. In addition to being
permitted to use any of the three current
versions of the official advertising
statement, the Board proposes to allow
FICUs the option of using a fourth
version, namely by stating ‘‘Insured by
NCUA.’’ To provide additional
regulatory relief, the Board proposes to
expand a current exemption from the
advertising statement requirement
regarding radio and television
advertisements, and eliminate the
requirement to include the official
advertising statement on statements of
condition required to be published by
law.
SUMMARY:
Comments must be received on
or before December 4, 2017.
ADDRESSES: You may submit comments
by any of the following methods (Please
send comments by one method only):
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• NCUA Web site: http://
www.ncua.gov/RegulationsOpinions
Laws/proposed_regs/proposed_
regs.html. Follow the instructions for
submitting comments.
• Email: Address to regcomments@
ncua.gov. Include ‘‘[Your name]
Comments on Notice of Proposed
sradovich on DSK3GMQ082PROD with PROPOSALS
DATES:
VerDate Sep<11>2014
18:17 Oct 03, 2017
Jkt 244001
Rulemaking Regarding Accuracy of
Advertising’’ in the email subject line.
• Fax: (703) 518–6319. Use the
subject line described above for email.
• Mail: Address to Gerard S. 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: You may view all
public comments on NCUA’s Web site
at http://www.ncua.gov/Legal/Regs/
Pages/PropRegs.aspx as submitted,
except for those we cannot post for
technical reasons. NCUA will not edit or
remove any identifying or contact
information from the public comments
submitted. You may inspect paper
copies of comments in NCUA’s law
library at 1775 Duke Street, Alexandria,
Virginia 22314, by appointment
weekdays between 9 a.m. and 3 p.m. To
make an appointment, call (703) 518–
6546 or send an email to OGCMail@
ncua.gov.
FOR FURTHER INFORMATION CONTACT:
Marvin Shaw, Staff Attorney, Office of
General Counsel, at the above address or
telephone (703) 518–6553.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Credit Union Act (Act)
requires each FICU to display NCUA’s
‘‘official sign’’ regarding National Credit
Union Share Insurance Fund insurance
of the FICU’s share accounts. The sign
includes language that the coverage is
backed by the full faith and credit of the
United States Government.1 Regulations
implementing this statutory requirement
are at 12 CFR part 740. Part 740 of
NCUA’s regulations also includes
requirements relating to NCUA’s official
advertising statement as discussed in
more detail below.
A. Part 740 Requirements
Part 740 applies to all FICUs. It
prescribes requirements for both the
NCUA’s official sign that FICUs must
display and the NCUA’s official
advertisement statement that FICUs
must make when advertising. In
relevant part, part 740 prohibits any
FICU from using advertising 2 or making
any representation which is inaccurate
or deceptive or which misrepresents its
services, contracts, financial condition,
or the Truth in Savings requirements.
NCUA’s official advertising statement
is ‘‘This credit union is federally
insured by the National Credit Union
Administration’’ or the shorter version
‘‘Federally insured by the NCUA.’’ As a
third option, the official sign may be
displayed in advertisements in lieu of
the advertising statement.
Section 740.5(c) of NCUA’s
regulations enumerates several kinds of
advertisements that, for practical
reasons, are exempted from the general
rule requiring the use of the official
advertising statement. With respect to
these exempted advertisements, the
Board is focusing on the exemptions
relating to radio advertisements that are
less than 15 seconds in duration 3 and
television advertisements that are less
than 15 seconds in duration.4
B. Regulatory History
For many years, NCUA’s advertising
and official sign regulations were
essentially the same as those of the
Federal Deposit Insurance Corporation
(FDIC).5 In 2011, however, the Board
amended part 740 by making NCUA’s
advertising rules more stringent than
FDIC’s rules. Specifically, in 2011,
while banks needed only to include the
FDIC advertising statement in radio and
television ads that exceeded 30 seconds,
the 2011 NCUA rule change required
FICUs to include NCUA’s official
advertising statement in radio and
television ads that exceeded 15
seconds.6 This additional requirement,
which the Board now believes is
unnecessary, affected more FICU ads
and disrupted the balance between bank
and FICU regulatory burden in this
context. According to some FICUs, it
also made it more difficult for FICUs to
produce effective ads.
The 2011 NCUA rule change also
required FICUs to include the
advertising statement on statements of
condition required to be published by
law, whereas banks are exempt from
this. The Board also proposes to relieve
FICUs from this additional burden,
which the Board believes is
unnecessary.
1 12
3 12
2 This
4 12
U.S.C. 1785.
includes print, electronic and broadcast
media, displays, signs, and stationary and other
promotional material.
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
CFR 740.5(c)(7).
CFR 740.5(c)(8).
5 12 CFR 328.
6 76 FR 30521 (May 26, 2011).
E:\FR\FM\04OCP1.SGM
04OCP1
46174
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Proposed Rules
Additionally, as a result of
information we have received from the
public, the Board proposes to amend
part 740 to permit a fourth iteration of
the official advertising statement,
namely by stating ‘‘Insured by NCUA.’’
This change would provide FICUs with
more flexibility without diminishing the
purpose of the rule.
The current part 740 addresses
conventional forms of advertising such
as print, radio, and television. The
Board requests comment about whether
the regulation should be modified to
facilitate the trend in advertising via
new types of social media, mobile
banking, text messaging and other
digital communication platforms,
including Twitter and Instagram. The
comments should focus on specific
recommendations that balance the
regulation’s goal to inform the public
with space and other constraints
inherent in new forms of advertising.
II. Regulatory Procedures
Regulatory Flexibility Act
The Regulatory Flexibility Act
requires NCUA to prepare an analysis to
describe any significant economic
impact a regulation may have on a
substantial number of small entities.7
For purposes of this analysis, NCUA
considers small credit unions to be
those having under $100 million in
assets. The proposed amendments
provide regulatory relief and thus do not
impose a significant burden on small
credit unions. Accordingly, NCUA has
determined and certifies that the
proposed rule, if adopted, will not have
a significant economic impact on a
substantial number of small credit
unions within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601–
612.
Executive Order 13132
Executive Order 13132 encourages
independent regulatory agencies to
consider the impact of their actions on
state and local interests. In adherence to
fundamental federalism principles,
NCUA, an independent regulatory
agency as defined in 44 U.S.C. 3502(5),
voluntarily complies with the executive
order. The proposed rule would not
have substantial direct effect on the
states, on the connection between the
national government and the states, or
on the distribution of power and
responsibilities among the various
levels of government. NCUA has
determined that this proposed rule does
not constitute a policy that has
federalism implications for purposes of
the executive order.
The Treasury and General Government
Appropriations Act of 1999—
Assessment of Federal Regulations and
Policies on Families
NCUA has determined that this
proposed rule will not affect family
well-being within the meaning of
Section 654 of the Treasury and General
Government Appropriations Act, 1999.9
List of Subjects in 12 CFR Part 740
Advertisements, Credit unions, Share
insurance, Signs and symbols.
By the National Credit Union
Administration Board on September 28,
2017.
Gerard S. Poliquin,
Secretary of the Board.
For the reasons discussed above, the
NCUA Board proposes to amend 12 CFR
part 740 as follows:
PART 740—ACCURACY OF
ADVERTISING AND NOTICE OF
INSURED STATUS
1. The authority for part 740
continues to read as follows:
sradovich on DSK3GMQ082PROD with PROPOSALS
Paperwork Reduction Act
■
The Paperwork Reduction Act of 1995
(‘‘PRA’’) applies to rulemakings in
which an agency by rule creates a new
paperwork burden on regulated entities
or modifies an existing burden.8 For
purposes of the PRA, a paperwork
burden may take the form of either a
reporting or a recordkeeping
requirement, both referred to as
information collections. The proposed
rule does not constitute a ‘‘collection of
information’’ within the meaning of
section 3502(3) and would not increase
paperwork requirements under the PRA
or regulations of the Office of
Management and Budget.
Authority: 12 U.S.C. 1766, 1781, 1785, and
1789.
75
U.S.C. 603(a).
U.S.C. 3507(d); 5 CFR part 1320.
8 44
VerDate Sep<11>2014
18:17 Oct 03, 2017
Jkt 244001
2. Amend § 740.5 by revising
paragraphs (a), (b), (c)(7) and (c)(8) to
read as follows:
■
§ 740.5 Requirements for the official
advertising statement.
(a) Each insured credit union must
include the official advertising
statement, prescribed in paragraph (b) of
this section, in all of its advertisements,
including on its main Internet page,
except as provided in paragraph (c) of
this section.
(b) The official advertising statement
is in substance one of the following:
9 Public
PO 00000
Law 105–277, 112 Stat. 2681 (1998).
Frm 00002
Fmt 4702
Sfmt 4702
(1) This credit union is federally
insured by the National Credit Union
Administration;
(2) Federally insured by NCUA;
(3) Insured by NCUA; or
(4) A reproduction of the official sign
as described in § 740.4(b) may be used
in lieu of the other statements included
in this section. If the official sign is used
as the official advertising statement, an
insured credit union may alter the font
size to ensure its legibility as provided
in § 740.4(b)(2).
(5) The official advertising statement
must be in a size and print that is clearly
legible and may be no smaller than the
smallest font size used in other portions
of the advertisement intended to convey
information to the consumer.
(c) * * *
(7) Advertisements by radio that are
less than thirty (30) seconds in time;
(8) Advertisements by television,
other than display advertisements, that
are less than thirty (30) seconds in time;
*
*
*
*
*
[FR Doc. 2017–21316 Filed 10–3–17; 8:45 am]
BILLING CODE 7535–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 80
[EPA–HQ–OAR–2017–0091; FRL–9968–70–
OAR]
Renewable Fuel Standard Program:
Standards for 2018 and BiomassBased Diesel Volume for 2019;
Availability of Supplemental
Information and Request for Further
Comment
Environmental Protection
Agency (EPA).
ACTION: Availability of supplemental
information; request for further
comment.
AGENCY:
This document provides
additional data and an opportunity to
comment on that data and potential
options for reductions in the 2018
biomass-based diesel, advanced biofuel,
and total renewable fuel volumes, and/
or the 2019 biomass-based diesel
volume under the Renewable Fuel
Standard (RFS) program. In a July 21,
2017 notice of proposed rulemaking, the
EPA proposed certain reductions in the
statutory volume targets for advanced
biofuel and total renewable fuel for
2018, and requested comment on further
reductions based on various
considerations. This document presents
additional data on production, imports
and cost of renewable fuel and several
options for how we may consider such
SUMMARY:
E:\FR\FM\04OCP1.SGM
04OCP1
Agencies
[Federal Register Volume 82, Number 191 (Wednesday, October 4, 2017)]
[Proposed Rules]
[Pages 46173-46174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-21316]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 /
Proposed Rules
[[Page 46173]]
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 740
RIN 3133-AE78
Accuracy of Advertising and Notice of Insured Status
AGENCY: National Credit Union Administration (NCUA).
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The NCUA Board (Board) proposes to revise certain provisions
of NCUA's advertising rule to provide regulatory relief to federally
insured credit unions (FICUs). The advertising rule requires FICUs to
use NCUA's ``official advertisement statement'' when advertising. In
addition to being permitted to use any of the three current versions of
the official advertising statement, the Board proposes to allow FICUs
the option of using a fourth version, namely by stating ``Insured by
NCUA.'' To provide additional regulatory relief, the Board proposes to
expand a current exemption from the advertising statement requirement
regarding radio and television advertisements, and eliminate the
requirement to include the official advertising statement on statements
of condition required to be published by law.
DATES: Comments must be received on or before December 4, 2017.
ADDRESSES: You may submit comments by any of the following methods
(Please send comments by one method only):
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
NCUA Web site: http://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 Notice of Proposed Rulemaking Regarding Accuracy of
Advertising'' in the email subject line.
Fax: (703) 518-6319. Use the subject line described above
for email.
Mail: Address to Gerard S. 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: You may view all public comments on NCUA's Web
site at http://www.ncua.gov/Legal/Regs/Pages/PropRegs.aspx as
submitted, except for those we cannot post for technical reasons. NCUA
will not edit or remove any identifying or contact information from the
public comments submitted. You may inspect paper copies of comments in
NCUA's law library at 1775 Duke Street, Alexandria, Virginia 22314, by
appointment weekdays between 9 a.m. and 3 p.m. To make an appointment,
call (703) 518-6546 or send an email to OGCMail@ncua.gov.
FOR FURTHER INFORMATION CONTACT: Marvin Shaw, Staff Attorney, Office of
General Counsel, at the above address or telephone (703) 518-6553.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Credit Union Act (Act) requires each FICU to display
NCUA's ``official sign'' regarding National Credit Union Share
Insurance Fund insurance of the FICU's share accounts. The sign
includes language that the coverage is backed by the full faith and
credit of the United States Government.\1\ Regulations implementing
this statutory requirement are at 12 CFR part 740. Part 740 of NCUA's
regulations also includes requirements relating to NCUA's official
advertising statement as discussed in more detail below.
---------------------------------------------------------------------------
\1\ 12 U.S.C. 1785.
---------------------------------------------------------------------------
A. Part 740 Requirements
Part 740 applies to all FICUs. It prescribes requirements for both
the NCUA's official sign that FICUs must display and the NCUA's
official advertisement statement that FICUs must make when advertising.
In relevant part, part 740 prohibits any FICU from using advertising
\2\ or making any representation which is inaccurate or deceptive or
which misrepresents its services, contracts, financial condition, or
the Truth in Savings requirements.
---------------------------------------------------------------------------
\2\ This includes print, electronic and broadcast media,
displays, signs, and stationary and other promotional material.
---------------------------------------------------------------------------
NCUA's official advertising statement is ``This credit union is
federally insured by the National Credit Union Administration'' or the
shorter version ``Federally insured by the NCUA.'' As a third option,
the official sign may be displayed in advertisements in lieu of the
advertising statement.
Section 740.5(c) of NCUA's regulations enumerates several kinds of
advertisements that, for practical reasons, are exempted from the
general rule requiring the use of the official advertising statement.
With respect to these exempted advertisements, the Board is focusing on
the exemptions relating to radio advertisements that are less than 15
seconds in duration \3\ and television advertisements that are less
than 15 seconds in duration.\4\
---------------------------------------------------------------------------
\3\ 12 CFR 740.5(c)(7).
\4\ 12 CFR 740.5(c)(8).
---------------------------------------------------------------------------
B. Regulatory History
For many years, NCUA's advertising and official sign regulations
were essentially the same as those of the Federal Deposit Insurance
Corporation (FDIC).\5\ In 2011, however, the Board amended part 740 by
making NCUA's advertising rules more stringent than FDIC's rules.
Specifically, in 2011, while banks needed only to include the FDIC
advertising statement in radio and television ads that exceeded 30
seconds, the 2011 NCUA rule change required FICUs to include NCUA's
official advertising statement in radio and television ads that
exceeded 15 seconds.\6\ This additional requirement, which the Board
now believes is unnecessary, affected more FICU ads and disrupted the
balance between bank and FICU regulatory burden in this context.
According to some FICUs, it also made it more difficult for FICUs to
produce effective ads.
---------------------------------------------------------------------------
\5\ 12 CFR 328.
\6\ 76 FR 30521 (May 26, 2011).
---------------------------------------------------------------------------
The 2011 NCUA rule change also required FICUs to include the
advertising statement on statements of condition required to be
published by law, whereas banks are exempt from this. The Board also
proposes to relieve FICUs from this additional burden, which the Board
believes is unnecessary.
[[Page 46174]]
Additionally, as a result of information we have received from the
public, the Board proposes to amend part 740 to permit a fourth
iteration of the official advertising statement, namely by stating
``Insured by NCUA.'' This change would provide FICUs with more
flexibility without diminishing the purpose of the rule.
The current part 740 addresses conventional forms of advertising
such as print, radio, and television. The Board requests comment about
whether the regulation should be modified to facilitate the trend in
advertising via new types of social media, mobile banking, text
messaging and other digital communication platforms, including Twitter
and Instagram. The comments should focus on specific recommendations
that balance the regulation's goal to inform the public with space and
other constraints inherent in new forms of advertising.
II. Regulatory Procedures
Regulatory Flexibility Act
The Regulatory Flexibility Act requires NCUA to prepare an analysis
to describe any significant economic impact a regulation may have on a
substantial number of small entities.\7\ For purposes of this analysis,
NCUA considers small credit unions to be those having under $100
million in assets. The proposed amendments provide regulatory relief
and thus do not impose a significant burden on small credit unions.
Accordingly, NCUA has determined and certifies that the proposed rule,
if adopted, will not have a significant economic impact on a
substantial number of small credit unions within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601-612.
---------------------------------------------------------------------------
\7\ 5 U.S.C. 603(a).
---------------------------------------------------------------------------
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (``PRA'') applies to
rulemakings in which an agency by rule creates a new paperwork burden
on regulated entities or modifies an existing burden.\8\ For purposes
of the PRA, a paperwork burden may take the form of either a reporting
or a recordkeeping requirement, both referred to as information
collections. The proposed rule does not constitute a ``collection of
information'' within the meaning of section 3502(3) and would not
increase paperwork requirements under the PRA or regulations of the
Office of Management and Budget.
---------------------------------------------------------------------------
\8\ 44 U.S.C. 3507(d); 5 CFR part 1320.
---------------------------------------------------------------------------
Executive Order 13132
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests. In
adherence to fundamental federalism principles, NCUA, an independent
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies
with the executive order. The proposed rule would not have substantial
direct effect on the states, on the connection between the national
government and the states, or on the distribution of power and
responsibilities among the various levels of government. NCUA has
determined that this proposed rule does not constitute a policy that
has federalism implications for purposes of the executive order.
The Treasury and General Government Appropriations Act of 1999--
Assessment of Federal Regulations and Policies on Families
NCUA has determined that this proposed rule will not affect family
well-being within the meaning of Section 654 of the Treasury and
General Government Appropriations Act, 1999.\9\
---------------------------------------------------------------------------
\9\ Public Law 105-277, 112 Stat. 2681 (1998).
---------------------------------------------------------------------------
List of Subjects in 12 CFR Part 740
Advertisements, Credit unions, Share insurance, Signs and symbols.
By the National Credit Union Administration Board on September
28, 2017.
Gerard S. Poliquin,
Secretary of the Board.
For the reasons discussed above, the NCUA Board proposes to amend
12 CFR part 740 as follows:
PART 740--ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS
0
1. The authority for part 740 continues to read as follows:
Authority: 12 U.S.C. 1766, 1781, 1785, and 1789.
0
2. Amend Sec. 740.5 by revising paragraphs (a), (b), (c)(7) and (c)(8)
to read as follows:
Sec. 740.5 Requirements for the official advertising statement.
(a) Each insured credit union must include the official advertising
statement, prescribed in paragraph (b) of this section, in all of its
advertisements, including on its main Internet page, except as provided
in paragraph (c) of this section.
(b) The official advertising statement is in substance one of the
following:
(1) This credit union is federally insured by the National Credit
Union Administration;
(2) Federally insured by NCUA;
(3) Insured by NCUA; or
(4) A reproduction of the official sign as described in Sec.
740.4(b) may be used in lieu of the other statements included in this
section. If the official sign is used as the official advertising
statement, an insured credit union may alter the font size to ensure
its legibility as provided in Sec. 740.4(b)(2).
(5) The official advertising statement must be in a size and print
that is clearly legible and may be no smaller than the smallest font
size used in other portions of the advertisement intended to convey
information to the consumer.
(c) * * *
(7) Advertisements by radio that are less than thirty (30) seconds
in time;
(8) Advertisements by television, other than display
advertisements, that are less than thirty (30) seconds in time;
* * * * *
[FR Doc. 2017-21316 Filed 10-3-17; 8:45 am]
BILLING CODE 7535-01-P