Assessment and Apportionment of Administrative Expenses, 48758-48760 [2017-22721]
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48758
Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Rules and Regulations
After consideration of all relevant
matter presented, including the
information and recommendation
submitted by the Board and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
List of Subjects in 7 CFR Part 996
Food grades and standards, Marketing
agreements, Peanuts, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, 7 CFR part 996 is amended as
follows:
PART 996—MINIMUM QUALITY AND
HANDLING STANDARDS FOR
DOMESTIC AND IMPORTED PEANUTS
MARKETED IN THE UNITED STATES
1. The authority citation for 7 CFR
part 996 continues to read as follows:
■
Authority: 7 U.S.C. 7958.
2. Section 996.13 is amended by
revising paragraphs (b) and (c) to read
as follows:
■
§ 996.13
Peanuts.
*
*
*
*
*
(b) Segregation 1. ‘‘Segregation 1
peanuts’’ means farmers stock peanuts
with not more than 3.49 percent
damaged kernels nor more than 1.00
percent concealed damage caused by
rancidity, mold, or decay and which are
free from visible Aspergillus flavus.
(c) Segregation 2. ‘‘Segregation 2
peanuts’’ means farmers stock peanuts
with more than 3.49 percent damaged
kernels or more than 1.00 percent
concealed damage caused by rancidity,
mold, or decay and which are free from
visible Aspergillus flavus.
*
*
*
*
*
Dated: October 16, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2017–22712 Filed 10–19–17; 8:45 am]
BILLING CODE 3410–02–P
FARM CREDIT ADMINISTRATION
12 CFR Part 607
nlaroche on DSK9F9SC42PROD with RULES
RIN 3052–AD30
Assessment and Apportionment of
Administrative Expenses
Farm Credit Administration.
Direct final rule.
AGENCY:
ACTION:
The Farm Credit
Administration (FCA or we) issues this
direct final rule adopting technical
SUMMARY:
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Jkt 244001
amendments to eliminate language that
is obsolete, confusing, and unnecessary
to determine the annual assessment
amount of Farm Credit System
institutions.
If no significant adverse
comment is received on or before
November 20, 2017, this regulation shall
become effective no earlier than the
expiration of 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.
ADDRESSES: For accuracy and efficiency
reasons, please submit comments by
email or through the FCA’s Web site.
We do not accept comments submitted
by facsimile (fax), as faxes are difficult
for us to process in compliance with
section 508 of the Rehabilitation Act.
Please do not submit your comment
multiple times via different methods.
You may submit comments by any of
the following methods:
• Email: Send us an email at regcomm@fca.gov.
• FCA Web site: https://www.fca.gov.
Select ‘‘Public Commenters,’’ then
‘‘Public Comments,’’ and follow the
directions for ‘‘Submitting a Comment.’’
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• 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 from 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, but for
technical reasons we may omit items
such as logos and special characters.
Identifying information 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:
Jeremy R. Edelstein, Senior Policy
Analyst, Office of Regulatory Policy,
Farm Credit Administration, McLean,
VA 22102–5090, (703) 883–4497, TTY
(703) 883–4056; or
Jennifer A. Cohn, Senior Counsel,
Office of General Counsel, Farm Credit
Administration, McLean, VA 22102–
5090, (303) 696–9737, TTY (703) 883–
4056.
DATES:
SUPPLEMENTARY INFORMATION:
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I. Objective
The objective of this direct final rule
is to eliminate confusion in the
definition of ‘‘average risk-adjusted
asset base’’ in § 607.2(b), which is used
to determine the annual assessment
amount of System institutions, by:
• Removing an obsolete and
unnecessary reference to FCA’s call
report schedule; and
• Clarifying the effect of mergers and
consolidations based on current
accounting practices and deleting
obsolete language relating to transfers of
direct lending authority.
II. Discussion
Effective January 1, 2017, the FCA
published the Tier 1/Tier 2 Framework;
Final Rule (new capital rule).1 The new
capital rule, in pertinent part, revised
the risk-weights that determine the riskadjusted asset base (the denominator) of
the permanent capital ratio that Farm
Credit System (System) institutions
must compute. The average riskadjusted asset base of a System bank,
association, or designated other System
entity is used to determine its annual
assessment of funds to cover FCA’s
expenses.2 Existing § 607.2(b) defines
and specifies how to calculate ‘‘average
risk-adjusted asset base’’ in four
different ways, depending on when the
institution was formed and how many
quarters of risk-adjusted assets are
available. All these variations, however,
define ‘‘average risk-adjusted asset
base’’ using the regulatory definition of
‘‘risk-adjusted asset base’’ and with
reference to risk-adjusted assets as
reported on each quarterly Call Report
Schedule RC–G.
The FCA significantly revised and
relabeled its call report schedules in
connection with the new capital rule.
An institution’s permanent capital ratio
denominator—its average risk-adjusted
asset base—is no longer reported in Call
Report Schedule RC–G. Accordingly,
FCA is revising the definition of
‘‘average risk-adjusted asset base’’ in
§ 607.2(b) to remove the references to
Call Report Schedule RC–G. Because
call report schedules are subject to
change outside of the regulatory
process, the revised definition does not
refer to a call report schedule. Rather,
revised § 607.2(b) defines ‘‘average riskadjusted asset base’’ with reference to
the average daily risk-adjusted assets as
of the last day of the quarter and
without reference to the call report
schedule. Because average daily riskadjusted assets can be determined under
FCA’s regulations, the reference to the
1 81
FR 48720, July 28, 2016.
12 CFR part 607.
2 See
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Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Rules and Regulations
call report schedule is unnecessary.3 In
the current version of the call report as
of the date of this technical amendment,
the denominator of the permanent
capital ratio (average daily risk-adjusted
assets) is reported at Line 8a of
Schedule RC–R.1, but this location is
subject to change.4
In addition, we revise § 607.2(b)(3)
and (b)(4) to clarify, based on current
accounting practices, that mergers result
in continuing institutions and
consolidations result in newly formed
institutions.5 We also revise these two
paragraphs to remove obsolete
provisions governing transfers of direct
lending authority, since we do not
expect any future transfers of direct
lending authority.6 Finally, we make
minor grammatical changes throughout
§ 607.2(b).
These changes are technical in nature
and have no substantive effect. This rule
will have no impact on the formula used
to calculate an institution’s assessment
amount. Moreover, this rule does not
change the definition of ‘‘average riskadjusted asset base’’ other than to
remove obsolete and unnecessary
references, clarify the effect of mergers
and consolidations, and correct minor
grammatical errors.
III. Direct Final Rule
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We are amending the definition of
‘‘average risk-adjusted asset base’’ in
§ 607.2(b) by a direct final rulemaking.
The Administrative Conference of the
United States recommends direct final
rulemaking for Federal agencies to enact
noncontroversial regulations on an
expedited basis, without the usual
notice and comment period.7 This
process enables us to reduce the time
and resources we need to develop,
review, and publish a final rule while
still affording the public an adequate
3 In the rare circumstance that an institution was
unable to submit a call report, it could, for
assessment purposes, calculate and provide the
same data outside of the call report.
4 By Informational Memorandum dated June 16,
2017, the FCA informed System banks and
associations about the changes to the assessment
calculation in the capital rules and about the
changes to the call report schedules relevant to
assessments.
5 Section 621.3(a) requires System institutions to
prepare financial statements and reports in
accordance with generally accepted accounting
principles (GAAP).
6 Section 7.6 of the Farm Credit Act of 1971, as
amended, 12 U.S.C. 2279b, authorized Federal land
banks and merged banks to transfer their direct
lending authority to System associations, and all
associations now have direct lending authority.
7 Recommendation 95–4, referencing the
Administrative Procedure Act ‘‘good cause’’
exemption at 5 U.S.C. 553(b)(B), adopted June 15,
1995.
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Jkt 244001
opportunity to comment or object to the
rule.
In a direct final rulemaking, we notify
the public that the rule will become
final on a specified date unless we
receive a significant adverse comment
during the comment period. A
significant adverse comment is one
where the commenter explains why the
rule would be inappropriate (including
challenges to its underlying premise or
approach), ineffective, or unacceptable
without a change. In general, a
significant adverse comment would
raise an issue serious enough to warrant
a substantive response from the FCA in
a notice-and-comment proceeding.
We believe that a direct final
rulemaking is the appropriate method
for amending § 607.2(b) because the
changes are technical in nature and do
not substantively alter the rights or
responsibilities of any party. We do not
anticipate there will be significant
adverse comments. If, however, we
receive a significant adverse comment
during the comment period, we will
publish a notice of withdrawal of the
relevant provisions of this rule that will
also indicate how further rulemaking
will proceed. If we receive no
significant adverse comments, we will
publish notice of the effective date of
the rule following the required
congressional waiting period under
section 5.17(c)(1) of the Farm Credit Act
of 1971, as amended.
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 the
direct final rule will not have a
significant economic impact on a
substantial number of small entities.
Each of the banks in the Farm Credit
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, Farm Credit System
institutions are not ‘‘small entities’’ as
defined in the Regulatory Flexibility
Act.
List of Subjects in 12 CFR Part 607
Accounting, Agriculture, Banks,
banking, Reporting and recordkeeping
requirements, Rural areas.
For the reasons stated in the
preamble, part 607 of chapter VI, title 12
of the Code of Federal Regulations is
amended as follows:
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48759
PART 607—ASSESSMENT AND
APPORTIONMENT OF
ADMINISTRATIVE EXPENSES
1. The authority citation for part 607
continues to read as follows:
■
Authority: Secs. 5.15, 5.17 of the Farm
Credit Act (12 U.S.C. 2250, 2252) and 12
U.S.C. 3025.
2. Section 607.2 is amended by
revising paragraph (b) to read as follows:
■
§ 607.2
Definitions.
*
*
*
*
*
(b) Average risk-adjusted asset base
means the average of the risk-adjusted
asset base (as defined in § 615.5201 of
this chapter) of banks, associations, and
designated other System entities,
calculated as follows:
(1) For a bank, association, or
designated other System entity with
four quarters of risk-adjusted assets as of
June 30 of each year, the sum of the
average daily risk-adjusted assets as of
the last day of the quarter for the most
recent four quarters immediately
preceding each September 15, divided
by four;
(2) Except as provided in paragraphs
(b)(3) and (b)(4) of this section, for a
bank, association, or designated other
System entity with less than four
quarters of risk-adjusted assets as of
June 30 of each year, the sum of the
average daily risk-adjusted assets as of
the last day of the quarter for the
quarters in which it was in existence
immediately preceding September 15,
divided by the number of quarters in
which it was in existence immediately
preceding September 15;
(3) For a bank, association, or
designated other System entity that is
the continuing institution after a merger
of existing institutions or a newly
formed institution formed through a
consolidation of existing institutions
and that has less than four quarters of
risk-adjusted assets as of June 30 of each
year, the sum of the average daily riskadjusted assets as of the last day of the
quarter for the most recent four quarters
immediately preceding September 15
for all the institutions that were merged
or consolidated, divided by four;
(4) For a bank, association, or
designated other System entity
chartered during the period July 1
through September 30 of each year that
is not the continuing institution after a
merger of existing institutions or a
newly formed institution formed
through a consolidation of existing
institutions, the total of the average
daily risk-adjusted assets as of the last
day of the quarter ending September 30.
*
*
*
*
*
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48760
Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Rules and Regulations
Dated: October 16, 2017.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2017–22721 Filed 10–19–17; 8:45 am]
BILLING CODE 6705–01–P
DEPARTMENT OF COMMERCE
Economic Development Administration
13 CFR Part 313
[Docket No.: 170828819–7819–01]
RIN 0610–AA70
Elimination of Regulations
Implementing Community Trade
Adjustment Assistance Program
Economic Development
Administration, U.S. Department of
Commerce.
ACTION: Final rule.
AGENCY:
Through this final rule, the
Economic Development Administration
(‘‘EDA’’), U.S. Department of Commerce,
eliminates the regulations implementing
the Community Trade Adjustment
Assistance (‘‘CTAA’’) Program.
Established in 2009 under the Trade Act
of 1974, the CTAA Program was
subsequently eliminated by Congress in
2011. Implementing regulations for this
now-defunct Program are thus
unnecessary. This final rule is a
‘‘deregulatory action’’ pursuant to the
April 5, 2017, Office of Management
and Budget (‘‘OMB’’) guidance
memorandum implementing Executive
Order 13771.
DATES: This rule is effective October 20,
2017.
FOR FURTHER INFORMATION CONTACT:
Jeffrey Roberson, Deputy Chief Counsel,
Office of the Chief Counsel, Economic
Development Administration, U.S.
Department of Commerce, 1401
Constitution Avenue NW., Suite 72023,
Washington, DC 20230; telephone: (202)
482–1315.
SUPPLEMENTARY INFORMATION:
SUMMARY:
nlaroche on DSK9F9SC42PROD with RULES
Background
The CTAA Program was enacted as
part of the Trade Act of 1974 (19 U.S.C.
2101 et seq.) by the Trade and
Globalization Adjustment Assistance
Act of 2009, which was included as
subtitle I (letter ‘‘I’’) of title I of Division
B of the American Recovery and
Reinvestment Act of 2009 (Pub. L. 111–
5). CTAA was intended to help
communities respond to job losses
resulting from international trade
impacts. EDA’s implementing
regulations for CTAA, located at 13 CFR
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14:59 Oct 19, 2017
Jkt 244001
part 313, became effective August 18,
2009 (74 FR 41592). For Fiscal Year
2010, the only year in which EDA made
awards under CTAA, EDA awarded
$36,768,000 in grants to 36 recipients.
The CTAA Program was subsequently
repealed by section 222 of the Trade
Adjustment Assistance Extension Act of
2011 (Pub. L. 112–40) ‘‘because it was
considered duplicative of other federal
programs. . . .’’ See CRS Report
R41922, Trade Adjustment Assistance
(TAA) and Its Role in U.S. Trade Policy,
Aug. 5, 2013, p. 14. With the
elimination of the CTAA Program by
Congress, EDA’s implementing
regulations are now unnecessary.
This elimination of 13 CFR part 313
is a ‘‘deregulatory action’’ pursuant to
the April 5, 2017, OMB guidance
memorandum implementing Executive
Order 13771. Since the program is
already defunct, there are no cost
savings associated with this elimination.
Classification
Administrative Procedure Act and
Regulatory Flexibility Act
Pursuant to 5 U.S.C. 553(b)(B), there
is good cause to waive prior notice and
an opportunity for public comment on
this action, as notice and comment are
unnecessary. This rule removes obsolete
regulations implementing the CTAA
Program, which has been eliminated by
Congress. Therefore, public comment
would serve no purpose and is
unnecessary. There is also good cause
under 5 U.S.C. 553(d)(3) to waive the
30-day delay in effectiveness. This rule
does not alter the rights or
responsibilities of any party, and
delaying implementation of this rule
serves no purpose.
Because prior notice and an
opportunity for public comment are not
required pursuant to 5 U.S.C. 553, or
any other law, the analytical
requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are
inapplicable. Therefore, a regulatory
flexibility analysis has not been
prepared.
Executive Orders No. 12866, 13563, and
13771
This final rule was drafted in
accordance with Executive Orders
12866, 13563, and 13771. OMB has
determined that this rule is not
significant for purposes of Executive
Orders 12866. This final rule is a
‘‘deregulatory action’’ pursuant to the
April 5, 2017, OMB guidance
memorandum implementing Executive
Order 13771 (M–17–21).
PO 00000
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Congressional Review Act
This final rule is not major under the
Congressional Review Act (5 U.S.C. 801
et seq.).
Executive Order No. 13132
This final rule does not contain
policies that have federalism
implications.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’)
requires that a Federal agency consider
the impact of paperwork and other
information collection burdens imposed
on the public and, under the provisions
of PRA section 3507(d), obtain approval
from OMB for each collection of
information it conducts, sponsors, or
requires through regulations.
Notwithstanding any other provision of
law, no person is required to respond to,
nor shall any person be subject to a
penalty for failure to comply with a
collection of information subject to the
PRA unless that collection displays a
currently valid OMB Control Number.
This final rule does not require the
collection of any information.
List of Subjects in 13 CFR Part 313
Trade adjustment assistance for
communities, Impacted community,
Petition and affirmative determination
requirements, Strategic plan,
Implementation grant.
For the reasons discussed above, and
under the authority of 19 U.S.C. 2341–
2372, EDA is removing and reserving 13
CFR part 313.
■
PART 313—[REMOVED AND
RESERVED]
Dated: October 16, 2017.
Dennis Alvord,
Deputy Assistant Secretary for Regional
Affairs.
[FR Doc. 2017–22782 Filed 10–19–17; 8:45 am]
BILLING CODE 3510–24–P
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
14 CFR Parts 1264 and 1271
RIN 2700–AE30
[Document Number NASA–17–071: Docket
Number–NASA–2017–0004]
Implementation of the Federal Civil
Penalties Inflation Adjustment Act and
Adjustment of Amounts for 2017
National Aeronautics and
Space Administration.
AGENCY:
E:\FR\FM\20OCR1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 202 (Friday, October 20, 2017)]
[Rules and Regulations]
[Pages 48758-48760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22721]
=======================================================================
-----------------------------------------------------------------------
FARM CREDIT ADMINISTRATION
12 CFR Part 607
RIN 3052-AD30
Assessment and Apportionment of Administrative Expenses
AGENCY: Farm Credit Administration.
ACTION: Direct final rule.
-----------------------------------------------------------------------
SUMMARY: The Farm Credit Administration (FCA or we) issues this direct
final rule adopting technical amendments to eliminate language that is
obsolete, confusing, and unnecessary to determine the annual assessment
amount of Farm Credit System institutions.
DATES: If no significant adverse comment is received on or before
November 20, 2017, this regulation shall become effective no earlier
than the expiration of 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.
ADDRESSES: For accuracy and efficiency reasons, please submit comments
by email or through the FCA's Web site. We do not accept comments
submitted by facsimile (fax), as faxes are difficult for us to process
in compliance with section 508 of the Rehabilitation Act. Please do not
submit your comment multiple times via different methods. You may
submit comments by any of the following methods:
Email: Send us an email at 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.''
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
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 from 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, but for technical
reasons we may omit items such as logos and special characters.
Identifying information 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:
Jeremy R. Edelstein, Senior Policy Analyst, Office of Regulatory
Policy, Farm Credit Administration, McLean, VA 22102-5090, (703) 883-
4497, TTY (703) 883-4056; or
Jennifer A. Cohn, Senior Counsel, Office of General Counsel, Farm
Credit Administration, McLean, VA 22102-5090, (303) 696-9737, TTY (703)
883-4056.
SUPPLEMENTARY INFORMATION:
I. Objective
The objective of this direct final rule is to eliminate confusion
in the definition of ``average risk-adjusted asset base'' in Sec.
607.2(b), which is used to determine the annual assessment amount of
System institutions, by:
Removing an obsolete and unnecessary reference to FCA's
call report schedule; and
Clarifying the effect of mergers and consolidations based
on current accounting practices and deleting obsolete language relating
to transfers of direct lending authority.
II. Discussion
Effective January 1, 2017, the FCA published the Tier 1/Tier 2
Framework; Final Rule (new capital rule).\1\ The new capital rule, in
pertinent part, revised the risk-weights that determine the risk-
adjusted asset base (the denominator) of the permanent capital ratio
that Farm Credit System (System) institutions must compute. The average
risk-adjusted asset base of a System bank, association, or designated
other System entity is used to determine its annual assessment of funds
to cover FCA's expenses.\2\ Existing Sec. 607.2(b) defines and
specifies how to calculate ``average risk-adjusted asset base'' in four
different ways, depending on when the institution was formed and how
many quarters of risk-adjusted assets are available. All these
variations, however, define ``average risk-adjusted asset base'' using
the regulatory definition of ``risk-adjusted asset base'' and with
reference to risk-adjusted assets as reported on each quarterly Call
Report Schedule RC-G.
---------------------------------------------------------------------------
\1\ 81 FR 48720, July 28, 2016.
\2\ See 12 CFR part 607.
---------------------------------------------------------------------------
The FCA significantly revised and relabeled its call report
schedules in connection with the new capital rule. An institution's
permanent capital ratio denominator--its average risk-adjusted asset
base--is no longer reported in Call Report Schedule RC-G. Accordingly,
FCA is revising the definition of ``average risk-adjusted asset base''
in Sec. 607.2(b) to remove the references to Call Report Schedule RC-
G. Because call report schedules are subject to change outside of the
regulatory process, the revised definition does not refer to a call
report schedule. Rather, revised Sec. 607.2(b) defines ``average risk-
adjusted asset base'' with reference to the average daily risk-adjusted
assets as of the last day of the quarter and without reference to the
call report schedule. Because average daily risk-adjusted assets can be
determined under FCA's regulations, the reference to the
[[Page 48759]]
call report schedule is unnecessary.\3\ In the current version of the
call report as of the date of this technical amendment, the denominator
of the permanent capital ratio (average daily risk-adjusted assets) is
reported at Line 8a of Schedule RC-R.1, but this location is subject to
change.\4\
---------------------------------------------------------------------------
\3\ In the rare circumstance that an institution was unable to
submit a call report, it could, for assessment purposes, calculate
and provide the same data outside of the call report.
\4\ By Informational Memorandum dated June 16, 2017, the FCA
informed System banks and associations about the changes to the
assessment calculation in the capital rules and about the changes to
the call report schedules relevant to assessments.
---------------------------------------------------------------------------
In addition, we revise Sec. 607.2(b)(3) and (b)(4) to clarify,
based on current accounting practices, that mergers result in
continuing institutions and consolidations result in newly formed
institutions.\5\ We also revise these two paragraphs to remove obsolete
provisions governing transfers of direct lending authority, since we do
not expect any future transfers of direct lending authority.\6\
Finally, we make minor grammatical changes throughout Sec. 607.2(b).
---------------------------------------------------------------------------
\5\ Section 621.3(a) requires System institutions to prepare
financial statements and reports in accordance with generally
accepted accounting principles (GAAP).
\6\ Section 7.6 of the Farm Credit Act of 1971, as amended, 12
U.S.C. 2279b, authorized Federal land banks and merged banks to
transfer their direct lending authority to System associations, and
all associations now have direct lending authority.
---------------------------------------------------------------------------
These changes are technical in nature and have no substantive
effect. This rule will have no impact on the formula used to calculate
an institution's assessment amount. Moreover, this rule does not change
the definition of ``average risk-adjusted asset base'' other than to
remove obsolete and unnecessary references, clarify the effect of
mergers and consolidations, and correct minor grammatical errors.
III. Direct Final Rule
We are amending the definition of ``average risk-adjusted asset
base'' in Sec. 607.2(b) by a direct final rulemaking. The
Administrative Conference of the United States recommends direct final
rulemaking for Federal agencies to enact noncontroversial regulations
on an expedited basis, without the usual notice and comment period.\7\
This process enables us to reduce the time and resources we need to
develop, review, and publish a final rule while still affording the
public an adequate opportunity to comment or object to the rule.
---------------------------------------------------------------------------
\7\ Recommendation 95-4, referencing the Administrative
Procedure Act ``good cause'' exemption at 5 U.S.C. 553(b)(B),
adopted June 15, 1995.
---------------------------------------------------------------------------
In a direct final rulemaking, we notify the public that the rule
will become final on a specified date unless we receive a significant
adverse comment during the comment period. A significant adverse
comment is one where the commenter explains why the rule would be
inappropriate (including challenges to its underlying premise or
approach), ineffective, or unacceptable without a change. In general, a
significant adverse comment would raise an issue serious enough to
warrant a substantive response from the FCA in a notice-and-comment
proceeding.
We believe that a direct final rulemaking is the appropriate method
for amending Sec. 607.2(b) because the changes are technical in nature
and do not substantively alter the rights or responsibilities of any
party. We do not anticipate there will be significant adverse comments.
If, however, we receive a significant adverse comment during the
comment period, we will publish a notice of withdrawal of the relevant
provisions of this rule that will also indicate how further rulemaking
will proceed. If we receive no significant adverse comments, we will
publish notice of the effective date of the rule following the required
congressional waiting period under section 5.17(c)(1) of the Farm
Credit Act of 1971, as amended.
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 the direct final
rule will not have a significant economic impact on a substantial
number of small entities. Each of the banks in the Farm Credit 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, Farm Credit System institutions are not ``small
entities'' as defined in the Regulatory Flexibility Act.
List of Subjects in 12 CFR Part 607
Accounting, Agriculture, Banks, banking, Reporting and
recordkeeping requirements, Rural areas.
For the reasons stated in the preamble, part 607 of chapter VI,
title 12 of the Code of Federal Regulations is amended as follows:
PART 607--ASSESSMENT AND APPORTIONMENT OF ADMINISTRATIVE EXPENSES
0
1. The authority citation for part 607 continues to read as follows:
Authority: Secs. 5.15, 5.17 of the Farm Credit Act (12 U.S.C.
2250, 2252) and 12 U.S.C. 3025.
0
2. Section 607.2 is amended by revising paragraph (b) to read as
follows:
Sec. 607.2 Definitions.
* * * * *
(b) Average risk-adjusted asset base means the average of the risk-
adjusted asset base (as defined in Sec. 615.5201 of this chapter) of
banks, associations, and designated other System entities, calculated
as follows:
(1) For a bank, association, or designated other System entity with
four quarters of risk-adjusted assets as of June 30 of each year, the
sum of the average daily risk-adjusted assets as of the last day of the
quarter for the most recent four quarters immediately preceding each
September 15, divided by four;
(2) Except as provided in paragraphs (b)(3) and (b)(4) of this
section, for a bank, association, or designated other System entity
with less than four quarters of risk-adjusted assets as of June 30 of
each year, the sum of the average daily risk-adjusted assets as of the
last day of the quarter for the quarters in which it was in existence
immediately preceding September 15, divided by the number of quarters
in which it was in existence immediately preceding September 15;
(3) For a bank, association, or designated other System entity that
is the continuing institution after a merger of existing institutions
or a newly formed institution formed through a consolidation of
existing institutions and that has less than four quarters of risk-
adjusted assets as of June 30 of each year, the sum of the average
daily risk-adjusted assets as of the last day of the quarter for the
most recent four quarters immediately preceding September 15 for all
the institutions that were merged or consolidated, divided by four;
(4) For a bank, association, or designated other System entity
chartered during the period July 1 through September 30 of each year
that is not the continuing institution after a merger of existing
institutions or a newly formed institution formed through a
consolidation of existing institutions, the total of the average daily
risk-adjusted assets as of the last day of the quarter ending September
30.
* * * * *
[[Page 48760]]
Dated: October 16, 2017.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2017-22721 Filed 10-19-17; 8:45 am]
BILLING CODE 6705-01-P
