Assessments, 52826-52827 [2019-21322]

Download as PDF 52826 Federal Register / Vol. 84, No. 192 / Thursday, October 3, 2019 / Proposed Rules (xiii) The parties are entitled to make oral closing arguments, but post-hearing submissions are only permitted by direction of the Administrative Judge; (xiv) Parties allowed to file written submissions, or documentary evidence must serve copies upon the other parties within the timeframe prescribed by the Administrative Judge; (xv) The Administrative Judge is prohibited, beginning with his or her appointment and until a final agency decision is issued, from initiating or otherwise engaging in ex parte (private) discussions with any party on the merits of the complaint; (xvi) The Administrative Judge is responsible for determining the date, time, and location of the hearing, including whether the hearing will be conducted via video conference; and (xvii) The Administrative Judge shall convene the hearing within 180 days of the OHA’s receipt of the request for a hearing, unless the parties agree to an extension of this deadline by mutual written consent, or the Administrative Judge determines that extraordinary circumstances exist that require a delay. (10) Hearings shall be open only to Hearing Counsel, duly authorized representatives of DOE, the person and the person’s counsel or other representatives, and such other persons as may be authorized by the Administrative Judge. Unless otherwise ordered by the Administrative Judge, witnesses shall testify in the presence of the person but not in the presence of other witnesses. (11) The Administrative Judge must use procedures appropriate to safeguard and prevent unauthorized disclosure of classified information or any other information protected from public disclosure by law or regulation, with minimum impairment of rights and obligations under this part. The classified or otherwise protected status of any information shall not, however, preclude its being introduced into evidence. The Administrative Judge may issue such orders as may be necessary to consider such evidence in camera including the preparation of a supplemental recommended decision to address issues of law or fact that arise out of that portion of the evidence that is classified or otherwise protected. (12) The person requesting the hearing has the burden of going forward and of demonstrating that the decision to impose the civil penalty is not supported by substantial evidence. (13) Within 180 days of receiving a copy of the hearing transcript, or the closing of the record, whichever is later, the Administrative Judge shall issue a recommended decision. The VerDate Sep<11>2014 17:07 Oct 02, 2019 Jkt 250001 recommended decision shall contain findings of fact and conclusions regarding all material issues of law, as well as the reasons therefor. If the Administrative Judge determines that a violation has occurred and that a civil penalty is appropriate, the recommended decision shall set forth the amount of the civil penalty based on the factors in paragraph (c)(5) of this section. (14) The Administrative Judge shall forward the recommended decision to the Under Secretary for Nuclear Security. The Under Secretary for Nuclear Security shall make a final decision as soon as practicable after completing his/her review. This may include compromising, mitigating, or remitting the penalties in accordance with section 234 a. of the AEA, as amended. DOE shall notify the person of the Under Secretary for Nuclear Security’s final decision or other action under this paragraph in writing by certified mail, return receipt requested. The person against whom the civil penalty is assessed by the final decision shall pay the full amount of the civil penalty assessed in the final decision within 30 calendar days unless otherwise determined by the Under Secretary for Nuclear Security. (15) If a civil penalty assessed in a final decision is not paid as provided in paragraphs (c) (3), (c)(6) or (c)(14) of this section, as appropriate, the Under Secretary for Nuclear Security may request the Department of Justice to initiate a civil action to collect the penalty imposed under this paragraph in accordance with section 234 c. of the AEA. (16) The Under Secretary for Nuclear Security or his/her designee may publish redacted versions of notices of violation and final decisions. [FR Doc. 2019–21301 Filed 10–2–19; 8:45 am] BILLING CODE 6450–01–P FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 327 RIN 3064–AF16 Assessments Federal Deposit Insurance Corporation (FDIC). ACTION: Notice of proposed rulemaking; supplemental notice. AGENCY: On September 4, 2019, the Federal Deposit Insurance Corporation (FDIC) issued a notice of proposed rulemaking with request for comments SUMMARY: PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 on proposed that would amend the deposit insurance assessment regulations that govern the use of small bank assessment credits (small bank credits) and one-time assessment credits (OTACs) by certain insured depository institutions (IDIs). The FDIC is supplementing that notice of proposed rulemaking with an updated regulatory flexibility analysis to reflect changes to the Small Business Administration’s monetary-based size standards which were adjusted for inflation as of August 19, 2019. DATES: Comments on the updated regulatory flexibility analysis must be received on or before November 4, 2019. ADDRESSES: You may submit comments by any of the following methods: • FDIC Website: https:// www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the agency website. • Email: Comments@fdic.gov. Include RIN 3064–AF16 on the subject line of the message. • Mail: Robert E. Feldman, Executive Secretary, Attention: Comments, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. • Hand Delivery to FDIC: Comments may be hand-delivered to the guard station at the rear of the 550 17th Street Building (located on F Street) on business days between 7 a.m. and 5 p.m. • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. Please include your name, affiliation, address, email address, and telephone number(s) in your comment. All statements received, including attachments and other supporting materials, are part of the public record and are subject to public disclosure. You should submit only information that you wish to make publicly available. Public Inspection: All comments received will be posted generally without change to https://www.fdic.gov/ regulations/laws/federal/, including any personal information provided. FOR FURTHER INFORMATION CONTACT: Ryan T. Singer, Chief, Regulatory Analysis Section, Division of Insurance and Research, (202) 898–7352, rsinger@ fdic.gov; Jennifer M. Jones, Counsel, Legal Division, (202) 898–6768, jennjones@fdic.gov. SUPPLEMENTARY INFORMATION: On September 4, 2019, the FDIC issued a notice of proposed rulemaking with request for comments on proposed that would amend the deposit insurance assessment regulations that govern the use of small bank credits and OTACs by certain IDIs. (See 84 FR 45443 (August E:\FR\FM\03OCP1.SGM 03OCP1 Federal Register / Vol. 84, No. 192 / Thursday, October 3, 2019 / Proposed Rules 29, 2019).) The FDIC is supplementing that notice of proposed rulemaking with an updated regulatory flexibility analysis to reflect changes to the Small Business Administration’s monetarybased size standards which were adjusted for inflation as of August 19, 2019. (See 84 FR 34261 (July 18, 2019).) Updated Regulatory Flexibility Act The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq., generally requires an agency, in connection with a proposed rule, to prepare and make available for public comment an initial regulatory flexibility analysis that describes the impact of a proposed rule on small entities.1 However, a regulatory flexibility analysis is not required if the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The Small Business Administration (SBA) has defined ‘‘small entities’’ to include banking organizations with total assets of less than or equal to $600 million.2 Generally, the FDIC considers a significant effect to be a quantified effect in excess of 5 percent of total annual salaries and benefits per institution, or 2.5 percent of total non-interest expenses. The FDIC believes that effects in excess of these thresholds typically represent significant effects for FDICinsured institutions. Certain types of rules, such as rules of particular applicability relating to rates or corporate or financial structures, or practices relating to such rates or structures, are expressly excluded from the definition of ‘‘rule’’ for purposes of the RFA.3 The proposed rule relates directly to the rates imposed on IDIs for deposit insurance and to the deposit insurance assessment system that measures risk and determines each established small bank’s assessment rate and is, therefore, not subject to the RFA. Nonetheless, the FDIC is voluntarily presenting information in this RFA section. Based on quarterly regulatory report data as of March 31, 2019, the FDIC insures 5,371 depository institutions, of 15 U.S.C. 601 et seq. SBA defines a small banking organization as having $600 million or less in assets, where ‘‘a financial institution’s assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year.’’ See 13 CFR 121.201 (as amended by 84 FR 34261, effective August 19, 2019). ‘‘SBA counts the receipts, employees, or other measure of size of the concern whose size is at issue and all of its domestic and foreign affiliates.’’ See 13 CFR 121.103. Following these regulations, the FDIC uses a covered entity’s affiliated and acquired assets, averaged over the preceding four quarters, to determine whether the covered entity is ‘‘small’’ for purposes of the RFA. 3 5 U.S.C. 601. 2 The VerDate Sep<11>2014 17:07 Oct 02, 2019 Jkt 250001 which 4,004 are defined as small entities by the terms of the RFA. Further, 4,001 RFA-defined small, FDICinsured institutions have small bank credits totaling $183.7 million. As stated previously, the proposed rule eliminates the possibility that affected small, FDIC-insured institutions would begin receiving small bank credits in the quarter when the reserve ratio first reaches or exceeds 1.38 percent, but that these credits then would be suspended if the reserve ratio subsequently falls below 1.38 percent (but remains at least 1.35 percent). Therefore, the economic effect of this aspect of the proposed rule is a reduction in the potential future costs associated with a disruption of the type just described in the application of small bank credits by affected small, FDIC-insured institutions. It is difficult to accurately estimate the magnitude of this benefit to affected small, FDICinsured institutions, because it depends, among other things, on future economic and financial conditions, the operational and financial management practices at affected small, FDIC-insured institutions, and the future levels of the reserve ratio. However, the FDIC believes the economic effects of the proposed rule are likely to be small, because an estimated 41 percent of the aggregate amount of small bank credits would be applied in the first quarter that the reserve ratio is at least 1.38 percent. Further, the FDIC estimates that 3,851 small, FDIC-insured institutions (or 96.3 percent) would exhaust their individual shares of small bank credits within four assessment periods. Of the 150 small, FDIC-insured institutions that the FDIC estimates would have small bank credits that would last more than four quarters, 139 are expected to exhaust their individual shares after being applied for two additional assessment periods (i.e., after a total of six assessment periods of application), and four within four additional assessment periods of application (i.e., after a total of eight assessment periods), and seven will last more than eight quarters. Therefore, the dollar amount of remaining small bank credits declines substantially after the initial application of credits in the first quarter of use, reducing the effects of credit application being suspended due to a decrease in the reserve ratio. Additionally, recent history suggests a generally positive near-term outlook for the banking sector (implying lower costs to the DIF), therefore the probability of suspension of applying small bank credits is low, particularly in the near-term quarters. As stated previously, the proposed rule would require the FDIC to remit the PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 52827 outstanding balances of remaining OTACs in a lump-sum payment, in the next assessment period in which the reserve ratio is at least 1.35 percent, at the same time that the outstanding small bank credit balances are remitted. As of March 31, 2019, only two IDIs have outstanding OTACs, totaling approximately $300,000. However, both institutions are subsidiaries of large banking organizations and therefore do not qualify as small entities under the RFA. Therefore, this aspect of the proposed rule would not affect any small, FDIC-insured institutions. The FDIC invites comments on all aspects of the supporting information provided in this RFA section. In particular, would this proposed rule have any significant effects on small entities that the FDIC has not identified? Federal Deposit Insurance Corporation. Dated at Washington, DC, on September 26, 2019. Robert E. Feldman, Executive Secretary. [FR Doc. 2019–21322 Filed 10–2–19; 8:45 am] BILLING CODE 6714–01–P FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 390 RIN 3064–AF15 Removal of Transferred OTS Regulations Regarding Accounting Requirements for State Savings Associations Federal Deposit Insurance Corporation. ACTION: Notice of proposed rulemaking. AGENCY: In order to streamline Federal Deposit Insurance Corporation (FDIC) regulations, the FDIC proposes to rescind and remove from the Code of Federal Regulations rules entitled Accounting Requirements (part 390, subpart T) that were transferred to the FDIC from the Office of Thrift Supervision (OTS) on July 21, 2011, in connection with the implementation of Title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The proposed rule would rescind and remove part 390, subpart T (including the Appendix to 12 CFR 390.384) because the financial statement and disclosure requirements set forth in part 390, subpart T are substantially similar to, although more detailed than, otherwise applicable financial statement form and content requirements and disclosure requirements that a State savings SUMMARY: E:\FR\FM\03OCP1.SGM 03OCP1

Agencies

[Federal Register Volume 84, Number 192 (Thursday, October 3, 2019)]
[Proposed Rules]
[Pages 52826-52827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21322]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 327

RIN 3064-AF16


Assessments

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice of proposed rulemaking; supplemental notice.

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

SUMMARY: On September 4, 2019, the Federal Deposit Insurance 
Corporation (FDIC) issued a notice of proposed rulemaking with request 
for comments on proposed that would amend the deposit insurance 
assessment regulations that govern the use of small bank assessment 
credits (small bank credits) and one-time assessment credits (OTACs) by 
certain insured depository institutions (IDIs). The FDIC is 
supplementing that notice of proposed rulemaking with an updated 
regulatory flexibility analysis to reflect changes to the Small 
Business Administration's monetary-based size standards which were 
adjusted for inflation as of August 19, 2019.

DATES: Comments on the updated regulatory flexibility analysis must be 
received on or before November 4, 2019.

ADDRESSES: You may submit comments by any of the following methods:
     FDIC Website: https://www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the agency 
website.
     Email: [email protected]. Include RIN 3064-AF16 on the 
subject line of the message.
     Mail: Robert E. Feldman, Executive Secretary, Attention: 
Comments, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery to FDIC: Comments may be hand-delivered to 
the guard station at the rear of the 550 17th Street Building (located 
on F Street) on business days between 7 a.m. and 5 p.m.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
    Please include your name, affiliation, address, email address, and 
telephone number(s) in your comment. All statements received, including 
attachments and other supporting materials, are part of the public 
record and are subject to public disclosure. You should submit only 
information that you wish to make publicly available.
    Public Inspection: All comments received will be posted generally 
without change to https://www.fdic.gov/regulations/laws/federal/, 
including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Ryan T. Singer, Chief, Regulatory 
Analysis Section, Division of Insurance and Research, (202) 898-7352, 
[email protected]; Jennifer M. Jones, Counsel, Legal Division, (202) 
898-6768, [email protected].

SUPPLEMENTARY INFORMATION: On September 4, 2019, the FDIC issued a 
notice of proposed rulemaking with request for comments on proposed 
that would amend the deposit insurance assessment regulations that 
govern the use of small bank credits and OTACs by certain IDIs. (See 84 
FR 45443 (August

[[Page 52827]]

29, 2019).) The FDIC is supplementing that notice of proposed 
rulemaking with an updated regulatory flexibility analysis to reflect 
changes to the Small Business Administration's monetary-based size 
standards which were adjusted for inflation as of August 19, 2019. (See 
84 FR 34261 (July 18, 2019).)

Updated Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq., 
generally requires an agency, in connection with a proposed rule, to 
prepare and make available for public comment an initial regulatory 
flexibility analysis that describes the impact of a proposed rule on 
small entities.\1\ However, a regulatory flexibility analysis is not 
required if the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
The Small Business Administration (SBA) has defined ``small entities'' 
to include banking organizations with total assets of less than or 
equal to $600 million.\2\ Generally, the FDIC considers a significant 
effect to be a quantified effect in excess of 5 percent of total annual 
salaries and benefits per institution, or 2.5 percent of total non-
interest expenses. The FDIC believes that effects in excess of these 
thresholds typically represent significant effects for FDIC-insured 
institutions. Certain types of rules, such as rules of particular 
applicability relating to rates or corporate or financial structures, 
or practices relating to such rates or structures, are expressly 
excluded from the definition of ``rule'' for purposes of the RFA.\3\ 
The proposed rule relates directly to the rates imposed on IDIs for 
deposit insurance and to the deposit insurance assessment system that 
measures risk and determines each established small bank's assessment 
rate and is, therefore, not subject to the RFA. Nonetheless, the FDIC 
is voluntarily presenting information in this RFA section.
---------------------------------------------------------------------------

    \1\ 5 U.S.C. 601 et seq.
    \2\ The SBA defines a small banking organization as having $600 
million or less in assets, where ``a financial institution's assets 
are determined by averaging the assets reported on its four 
quarterly financial statements for the preceding year.'' See 13 CFR 
121.201 (as amended by 84 FR 34261, effective August 19, 2019). 
``SBA counts the receipts, employees, or other measure of size of 
the concern whose size is at issue and all of its domestic and 
foreign affiliates.'' See 13 CFR 121.103. Following these 
regulations, the FDIC uses a covered entity's affiliated and 
acquired assets, averaged over the preceding four quarters, to 
determine whether the covered entity is ``small'' for purposes of 
the RFA.
    \3\ 5 U.S.C. 601.
---------------------------------------------------------------------------

    Based on quarterly regulatory report data as of March 31, 2019, the 
FDIC insures 5,371 depository institutions, of which 4,004 are defined 
as small entities by the terms of the RFA. Further, 4,001 RFA-defined 
small, FDIC-insured institutions have small bank credits totaling 
$183.7 million.
    As stated previously, the proposed rule eliminates the possibility 
that affected small, FDIC-insured institutions would begin receiving 
small bank credits in the quarter when the reserve ratio first reaches 
or exceeds 1.38 percent, but that these credits then would be suspended 
if the reserve ratio subsequently falls below 1.38 percent (but remains 
at least 1.35 percent). Therefore, the economic effect of this aspect 
of the proposed rule is a reduction in the potential future costs 
associated with a disruption of the type just described in the 
application of small bank credits by affected small, FDIC-insured 
institutions. It is difficult to accurately estimate the magnitude of 
this benefit to affected small, FDIC-insured institutions, because it 
depends, among other things, on future economic and financial 
conditions, the operational and financial management practices at 
affected small, FDIC-insured institutions, and the future levels of the 
reserve ratio. However, the FDIC believes the economic effects of the 
proposed rule are likely to be small, because an estimated 41 percent 
of the aggregate amount of small bank credits would be applied in the 
first quarter that the reserve ratio is at least 1.38 percent. Further, 
the FDIC estimates that 3,851 small, FDIC-insured institutions (or 96.3 
percent) would exhaust their individual shares of small bank credits 
within four assessment periods. Of the 150 small, FDIC-insured 
institutions that the FDIC estimates would have small bank credits that 
would last more than four quarters, 139 are expected to exhaust their 
individual shares after being applied for two additional assessment 
periods (i.e., after a total of six assessment periods of application), 
and four within four additional assessment periods of application 
(i.e., after a total of eight assessment periods), and seven will last 
more than eight quarters. Therefore, the dollar amount of remaining 
small bank credits declines substantially after the initial application 
of credits in the first quarter of use, reducing the effects of credit 
application being suspended due to a decrease in the reserve ratio. 
Additionally, recent history suggests a generally positive near-term 
outlook for the banking sector (implying lower costs to the DIF), 
therefore the probability of suspension of applying small bank credits 
is low, particularly in the near-term quarters.
    As stated previously, the proposed rule would require the FDIC to 
remit the outstanding balances of remaining OTACs in a lump-sum 
payment, in the next assessment period in which the reserve ratio is at 
least 1.35 percent, at the same time that the outstanding small bank 
credit balances are remitted. As of March 31, 2019, only two IDIs have 
outstanding OTACs, totaling approximately $300,000. However, both 
institutions are subsidiaries of large banking organizations and 
therefore do not qualify as small entities under the RFA. Therefore, 
this aspect of the proposed rule would not affect any small, FDIC-
insured institutions. The FDIC invites comments on all aspects of the 
supporting information provided in this RFA section. In particular, 
would this proposed rule have any significant effects on small entities 
that the FDIC has not identified?

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on September 26, 2019.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2019-21322 Filed 10-2-19; 8:45 am]
 BILLING CODE 6714-01-P
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