Assessment of Fees on Certain Bank Holding Companies and Nonbank Financial Companies Supervised by the Federal Reserve Board To Cover the Expenses of the Financial Research Fund, 59320-59325 [2019-23906]
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Federal Register / Vol. 84, No. 213 / Monday, November 4, 2019 / Proposed Rules
adopting those rules as final regulations
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(the expiration date of the Temporary
Regulations), a taxpayer may rely on the
2016 Proposed Regulations until further
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taxpayer consistently applies the rules
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Request for Comments
The Treasury Department and the IRS
request comments on all aspects of the
rules described in part III of this
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In particular, the Treasury Department
and the IRS request comments on the
appropriate standard for determining
the existence of a connection between a
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transaction. The Treasury Department
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and factors that indicate when the
funding rule does not apply. The
Treasury Department and the IRS also
request comments on what additional
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Effect on Other Documents
Notice 2019–58, 2019–44 I.R.B. 1022
(October 28, 2019), which addresses the
status of the 2016 Proposed Regulations
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Drafting Information
The principal author of this advance
notice of proposed rulemaking is Azeka
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J. Abramoff of the Office of Associate
Chief Counsel (International). However,
other personnel from the Treasury
Department and the IRS participated in
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Sunita Lough,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2019–23819 Filed 10–31–19; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
31 CFR Part 150
John
Zitko, Senior Counsel, OFR, (202) 927–
8372, john.zitko@ofr.treasury.gov.
FOR FURTHER INFORMATION CONTACT:
RIN 1505–AC59
Assessment of Fees on Certain Bank
Holding Companies and Nonbank
Financial Companies Supervised by
the Federal Reserve Board To Cover
the Expenses of the Financial
Research Fund
Departmental Offices, Treasury.
Proposed rule.
AGENCY:
ACTION:
The Department of the
Treasury (‘‘Treasury’’) is requesting
comment on a proposed rule to
implement section 401 of the Economic
Growth, Regulatory Relief, and
Consumer Protection Act (the
‘‘Economic Growth Act’’), which
amends section 155 of the Dodd-Frank
Wall Street Reform and Consumer
Protection Act (the ‘‘Dodd-Frank Act’’).
As amended, section 155 requires the
Secretary of the Treasury to establish, by
regulation, an assessment schedule
applicable to bank holding companies
with total consolidated assets of $250
billion or greater and nonbank financial
companies supervised by the Board of
Governors of the Federal Reserve
System (‘‘the Board’’), to collect
assessments equal to the total expenses
of the Office of Financial Research (the
‘‘OFR’’). The Department is also
proposing other amendments to the part
to simplify the method for determining
the amount of total assessable assets for
foreign banking organizations, which
have been made possible by the
introduction of a new regulatory data
source.
DATES: Comments must be received by
December 4, 2019.
ADDRESSES: Submit comments
electronically through the Federal
eRulemaking Portal at https://
www.regulations.gov, or by mail to: U.S.
Department of the Treasury, Office of
Financial Research, Attn: John Zitko,
717 14th Street NW, Washington, DC
20220. Because mail in the Washington,
DC area may be subject to delay, it is
recommended that comments be
SUMMARY:
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submitted electronically. Please include
your name, affiliation, address, email
address, and telephone number in your
comment. Comments will be available
for public inspection on
www.regulations.gov. In general, all
comments received, including
attachments and other supporting
materials, are part of the public record
and will be made available to the
public. Do not submit any information
in your comment or supporting
materials that you consider confidential
or inappropriate for public disclosure.
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SUPPLEMENTARY INFORMATION:
I. Background
Section 155(d) of the Dodd-Frank Act
directs the Secretary of the Treasury to
establish, by regulation, and with the
approval of the Financial Stability
Oversight Council (the ‘‘Council’’), an
assessment schedule to collect
assessments from certain companies
equal to the total expenses of the OFR.
Included in the OFR’s expenses are
expenses of the Council, pursuant to
section 118 of the Dodd-Frank Act, and
certain expenses of the Federal Deposit
Insurance Corporation (the ‘‘FDIC’’),
pursuant to section 210 of the DoddFrank Act. Section 401 of the Economic
Growth Act, Public Law 115–174, also
provides that any bank holding
company, regardless of asset size, that
has been identified as a global
systemically important bank (‘‘G–SIB’’)
under § 217.402 of title 12, Code of
Federal Regulations, shall be considered
a bank holding company with total
consolidated assets equal to or greater
than $250 billion for purposes of section
155(d) of the Dodd-Frank Act. On May
21, 2012, Treasury published a final
regulation implementing section 155(d)
in the Federal Register, codified at 31
CFR part 150 (the ‘‘Original Rules’’).
Before the enactment of the Economic
Growth Act, pursuant to section 155(d)
and the implementing regulation,
Treasury collected assessments from
bank holding companies with total
consolidated assets of $50,000,000,000
or greater and nonbank financial
companies supervised by the Board.
On May 24, 2018, the Economic
Growth Act was signed into law.
Section 401(c)(1) of the Economic
Growth Act replaced the $50 billion
reference in section 155(d) of the DoddFrank Act with $250 billion. In
addition, section 401(f) of the Economic
Growth Act required any bank holding
company identified as a G–SIB pursuant
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Federal Register / Vol. 84, No. 213 / Monday, November 4, 2019 / Proposed Rules
to 12 CFR 217.402 to be considered a
bank holding company with total
consolidated assets equal to or greater
than $250 billion for purposes of section
155(d) of the Dodd-Frank Act. As a
result of this statutory amendment, bank
holding companies with less than $250
billion in total consolidated assets that
are not G–SIBs are not to be assessed
under Dodd-Frank Act section 155(d).
The Economic Growth Act sets forth
two different effective dates. For bank
holding companies with total
consolidated assets of less than $100
billion, it became effective on May 24,
2018 (the date of enactment). For bank
holding companies with total
consolidated assets of $100 billion or
more and for G–SIBs, the effective date
is November 24, 2019 (18 months after
the date of enactment). This proposed
rule is, in part, intended to implement
section 401.
Under section 118 of the Dodd-Frank
Act, the expenses of the Council are
treated as expenses of, and are paid by,
the OFR. In addition, under section 210
of the Dodd-Frank Act, certain
implementation expenses of the FDIC
associated with the FDIC’s orderly
liquidation authority are treated as
expenses of the Council,1 and the FDIC
is directed to periodically submit
requests for reimbursement to the
Chairperson of the Council. The total
expenses for the OFR therefore include
the combined expenses of the OFR and
the Council and certain expenses of the
FDIC. All of these expenses are paid out
of the Financial Research Fund (the
‘‘FRF’’), a fund managed by Treasury.
The Council was established by the
Dodd-Frank Act to identify risks to U.S.
financial stability, promote market
discipline, and respond to emerging
threats to the stability of the U.S.
financial system. The Council is chaired
by the Secretary of the Treasury, and its
15 members include all of the federal
financial regulators, an independent
member with insurance expertise
appointed by the President, and state
financial regulators.
The OFR was established within
Treasury by the Dodd-Frank Act to
support the Council and its member
agencies. Among the OFR’s key duties
are:
1 Under Section 210(n)(10)(C) of the Dodd-Frank
Act the term implementation expenses ‘‘(i) means
costs incurred by [the FDIC] beginning on the date
of enactment of this Act, as part of its efforts to
implement [Title II] that do not relate to a particular
covered financial company; and (ii) includes the
costs incurred in connection with the development
of policies, procedures, rules, and regulations and
other planning activities of the [FDIC] consistent
with carrying out [Title II].’’
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• Collecting data on behalf of the
Council and proving such data to the
Council and member agencies;
• Standardizing the types and formats
of data reported and collected;
• Performing research;
• Developing tools for risk
measurement and monitoring; and
• Reporting to Congress and the
public on the OFR’s assessment of
significant financial market
developments and potential emerging
threats to U.S. financial stability.
II. This Proposed Rule
Under this proposed rule, Treasury
would implement the changes to the
FRF assessments required by the
Economic Growth Act. The proposed
rule would also make certain other
amendments to 31 CFR part 150 to
simplify the method for determining the
amount of total assessable assets for
certain entities and would remove
outdated references to the initial
assessment period, which concluded in
2013, and other non-substantive
changes to add clarifying or remove
redundant language.
Treasury is seeking comments on all
aspects of this proposed rulemaking.
a. Determination of Assessed
Companies
To impose assessments under section
155 of the Dodd-Frank Act, Treasury
must identify companies that are subject
to the assessment. As described in the
Original Rules, and below, Treasury
works closely with the Board to
determine the population of assessed
companies.
The original text of Dodd-Frank Act
section 155(d) required assessments to
be collected from bank holding
companies with total consolidated
assets of $50 billion or greater and
nonbank financial companies
supervised by the Board. The Economic
Growth Act raised the asset threshold
for bank holding companies to $250
billion and also stated that a bank
holding company, regardless of asset
size, that has been identified as a G–SIB
under § 217.402 of title 12, Code of
Federal Regulations, shall be considered
a bank holding company with total
consolidated assets equal to or greater
than $250 billion for purposes of section
155(d) of the Dodd-Frank Act.
Accordingly, we are proposing
changes to the definitions of ‘‘Assessed
Company’’ and ‘‘Total Assessable
Assets’’ in 12 CFR 150.2, as well as the
deletion of a reference to foreign
banking organizations with less than
$50 billion in 12 CFR 150.5, in
accordance with the clear mandate of
the Economic Growth Act with respect
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to an increase in the asset threshold
from $50 billion to $250 billion and the
inclusion of G–SIBs within the scope of
companies subject to assessments under
section 155.
b. Determination of Total Assessable
Assets
i. Foreign Banking Organizations
At the time of adoption of the Original
Rules, there was no single regulatory
reporting form that provided a foreign
banking organization’s total assets of
combined U.S. operations, including its
U.S. branches, agencies, and
subsidiaries. The preamble to the
Original Rules specifically noted the
possibility that reporting requirements
for foreign banking organizations would
change over time and that the list of
reports would need to be adjusted.2 To
allow for the possibility of these
changes, the Original Rules did not
include a list of specific reference
reports for foreign banking
organizations, in contrast to U.S. bank
holding companies. It was noted that
calculating banking organizations’ total
assets of combined U.S. operations
based on multiple reports could result
in double-counting.3 The preamble to
the Original Rules stated that Treasury
would make every effort to avoid
double-counting, consulting with the
Board and the affected firms as
necessary, and that any questions could
be addressed through the appeals
process.4
After the adoption of the Original
Rules, the Board modified its form FR
Y–7Q by adding a line item for reporting
the total combined assets of a foreign
banking organization’s U.S. operations.
Line item 6 of part 1A of FR Y–7Q now
requires reporting of the total combined
assets of a top-tier foreign banking
organization’s U.S.-domiciled affiliates,
branches, and agencies, excluding
intercompany balances and
intercompany transactions between
those entities to the extent such items
are not already eliminated in
consolidation.5 Accordingly, to simplify
the method for determining the amount
of total assessable assets for foreign
banking organizations and to adopt an
approach for foreign banking
organizations that is comparable to the
approach under the Original Rules for
U.S. bank holding companies, we are
proposing changes to the definition of
2 77
FR 29890 (May 21, 2012).
FR 29888–89 (May 21, 2012).
4 77 FR 29889 (May 21, 2012).
5 See Federal Reserve, The Capital and Asset
Report for Foreign Banking Organizations—FR Y–
7Q, available at https://www.federalreserve.gov/
reportforms/forms/FR_Y-7Q20190331_f.pdf.
3 77
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‘‘total assessable assets’’ by specifying
that the calculation of a foreign banking
organization’s total assessable assets
shall be based on the data reported in
the FR Y–7Q.
ii. Timing of Determination Dates,
Billing, and Collection
Under the Original Rules, assessments
are semiannual. On the specified
determination date before each
assessment period, Treasury determines
the pool of assessed companies, which
receive confirmation statements. After
any appeals, assessments are debited
from assessed companies’ accounts on
the assessment payment date.
The Original Rules generally use a
period of four calendar quarters to
measure the total assessable assets of
both U.S. and foreign entities for
assessments. Thus, for the assessment
period with a November 30
determination date, total assessable
assets are based on the company’s
regulatory filings for the fourth quarter
of the previous calendar year and the
first three quarters of the same calendar
year. For the assessment period with a
May 31 determination date, total
assessable assets are based on the
company’s filings for the last three
quarters of the previous year and the
first quarter of the same calendar year.
Both the Federal Reserve’s form FR
Y–9C, which the Original Rules require
to be used to determine total assessable
Assessment period
Determination
date
Confirmation
statement date
1st semiannual assessment period
(April–September).
2nd semiannual assessment period
(October–March).
October 31 ...
November 15 (or
next business
day).
April 30 .........
May 15 (or next
business day).
assets of U.S. bank holding companies,
and the FR Y–7Q, which we are now
proposing to use to determine the total
assessable assets of foreign banking
organizations, are quarterly reports.
Their filing deadlines, however, are
asynchronous, as the FR Y–9C generally
must be filed within 40 calendar days
after each calendar quarter,6 and the FR
Y–7Q generally must be filed within 90
calendar days after the quarter ends.
The timing of updated reports therefore
varies. For example, on the
determination date of May 31 under the
Original Rules, the FR Y–9C reports are
already available for Q1 of the same
year, but Q1 reports on FR Y–7Q are not
due until approximately one month
later (June 29).
To enable consistency in the timing of
determining assessable assets for U.S.
and foreign entities we are proposing to
move each of the two semiannual
determination dates one month earlier.
Accordingly, the first determination
date in each calendar year would be
April 30 instead of the current May 31,
and the second determination date
would be October 31, instead of
November 30. This proposed change
would enable each assessment to be
based on companies’ filings for the last
two calendar quarters of the previous
year and the first two quarters of the
current calendar year for assessment
periods with an October 31
Initial response to
redetermination
request
Redetermination
request deadline
30 calendar days
from date of
Confirmation
Statement.
30 calendar days
from date of
Confirmation
Statement.
21 calendar days
from receipt of
Redetermination
Request.
21 calendar days
from receipt of
Redetermination
Request.
determination date, and all four quarters
of the previous calendar year for
assessment periods with an April 30
determination date.
Consistent with Treasury’s existing
process, before each assessment period,
after determining the pool of assessed
companies and publishing an
assessment fee rate, Treasury will
calculate the assessment fee for each
assessed company, send an electronic
billing notification to each assessed
company, and, on the assessment
payment date, initiate a direct debit to
each company’s account through
www.pay.gov to collect the assessments.
Treasury proposes to retain the existing
process, with one additional month
added to the beginning of each cycle, as
described above, while keeping the
existing dates for the notice of fees,
billing, and payment. In order to
provide additional clarity as to when
redetermination requests must be
received from companies wishing to
appeal their status as an assessed
company or the total assessable assets
that the Department has determined will
be used for calculating the company’s
assessment, Treasury proposes to amend
the reference to such date in 12 CFR
150.6(b) from ‘‘one month’’ to ‘‘30
calendar days.’’
The table below shows approximate
dates of the proposed assessment billing
and collection process:
Publication of
notice of fees *
Billing date
Payment date
February 15 (or
next business
day).
March 1 (or prior
business day).
March 15 (or next
business day).
August 15 (or next
business day).
September 1 (or
prior business
day).
September 15 (or
next business
day).
* Rate published in the Notice of Fees.
The timeframe for sending
confirmation statements and receiving
appeals would remain the same.
Specifically, confirmation statements
would continue to be mailed no later
than 15 calendar days after the
determination date, and appeals by
assessable companies would continue to
be due one month later. In addition to
promoting consistent measurements of
U.S. and foreign entities, as noted
above, adding a month to the beginning
of the FRF assessments cycle would also
afford assessed companies additional
time to address appeals and make
payment arrangements, and would
provide Treasury additional time to
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calculate assessments and administer
the billing process.
III. Administrative Law Matters
a. Regulatory Flexibility Act
Congress enacted the Regulatory
Flexibility Act (the ‘‘RFA’’) to address
concerns related to the effects of agency
rules on small entities.7 Treasury is
sensitive to the impact its rules may
impose on small entities. The RFA
requires agencies either to provide an
initial regulatory flexibility analysis
with a proposed rule for which general
6 Reports as of December 31 are due 45 calendar
days later.
7 5 U.S.C. 601 et seq.
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notice of proposed rulemaking is
required, or to certify that the proposed
rule will not have a significant
economic impact on a substantial
number of small entities.8
Under regulations issued by the Small
Business Administration, a ‘‘small
entity’’ includes those firms within the
‘‘Finance and Insurance’’ sector with
asset sizes that vary from $7.5 million
in assets to $550 million or less in
assets.9 For purposes of the RFA,
entities that are banks are considered
small entities if their assets are less than
or equal to $550 million.
85
U.S.C. 603(a).
CFR 121.201.
9 13
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As discussed above, under section
155 of the Dodd-Frank Act, as amended
by the Economic Growth Act, only bank
holding companies with more than $250
billion in total consolidated assets, G–
SIBs, and nonbank financial companies
supervised by the Board will be subject
to assessments under this proposed rule.
As such, this proposed rule will not
apply to small entities and a regulatory
flexibility analysis is not required.
Pursuant to the Regulatory Flexibility
Act, 5 U.S.C. 605(b), it is hereby
certified that this proposed rule will
not, if promulgated, have a significant
economic impact on a substantial
number of small entities.
b. Paperwork Reduction Act
We estimate that there are certain
direct costs associated with complying
with these rules. On a one-time basis,
assessed entities would be required to
set up a bank account for fund transfers
and provide the required information to
Treasury through an information
collection form. The form includes bank
account routing information and contact
information for the individuals at the
company that will be responsible for
setting up the account and ensuring that
funds are available on the billing date.
We estimate that approximately 20
companies could be affected, and that
completing the form and submitting it to
Treasury would take approximately 15
minutes. The aggregate paperwork
burden is estimated at 5.0 hours.
However, all of these companies have
already established an account for
payments or collections to the U.S.
government pursuant to the Original
Rules.
On a semiannual basis, assessed
companies have the opportunity to
review the confirmation statement and
assessment bill. The Original Rules do
not require the companies to conduct
this review, but do permit it. We
anticipate that at least some of the
companies will conduct reviews, in part
because the cost associated with it is
very low.
The collection of information
contained in this proposed rule has
been submitted to the Office of
Management and Budget (OMB) for
review under the requirements of the
Paperwork Reduction Act, 44 U.S.C.
3507(d).
Organizations and individuals
desiring to submit comments
concerning the collection of information
in the proposed rule should direct them
to: U.S. Office of Management and
Budget, Attn: Desk Officer for the
Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, DC 20503, or by email to
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oira_submission@omb.eop.gov. A copy
of the comments should also be sent to
Treasury at the addresses previously
specified. Comments on the collection
of information should be received by
January 3, 2020.
Treasury specifically invites
comments on: (a) Whether the proposed
collection of information is necessary
for the proper performance of the
mission of Treasury, and whether the
information will have practical utility;
(b) the accuracy of the estimate of the
burden of the collections of information
(see below); (c) ways to enhance the
quality, utility, and clarity of the
information collection; (d) ways to
minimize the burden of the information
collection, including through the use of
automated collection techniques or
other forms of information technology;
and (e) estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to maintain the information.
The information collections are
included in § 150.6.
c. Regulatory Planning and Review
(Executive Orders 12866 and 13563)
This rule is not a significant
regulatory action as defined in section
3(f) of Executive Order 12866 as
supplemented by Executive Order
12563.
List of Subjects in 31 CFR Part 150
Bank holding companies, Financial
Research Fund, Nonbank financial
companies.
■ For the reasons set forth in the
preamble, Treasury proposes to revise
title 31, part 150, of the Code of Federal
Regulations to read as follows:
PART 150—FINANCIAL RESEARCH
FUND
Sec.
150.1
150.2
150.3
150.4
150.5
150.6
Scope.
Definitions.
Determination of assessed companies.
Calculation of assessment basis.
Calculation of assessments.
Notice and payment of assessments.
Authority: 12 U.S.C. 5345; 31 U.S.C. 321;
12 U.S.C. 5365 note (Section 401(d), Pub. L.
115–174, 132 Stat. 1358; Section 401(f), Pub.
L. 115–174, 132 Stat. 1359).
§ 150.1
Scope.
The assessments contained in this
part are made pursuant to the authority
contained in 12 U.S.C. 5345.
§ 150.2
Definitions.
As used in this part:
Assessed company means:
(1) A bank holding company that has
$250 billion or more in total assessable
assets; or
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(2) A bank holding company,
regardless of asset size, that has been
identified as a global systemically
important bank holding company under
§ 217.402 of title 12, Code of Federal
Regulations; or
(3) A nonbank financial company that
the Council has determined under
section 113 of the Dodd-Frank Act shall
be supervised by the Board.
Assessment basis means, for a given
assessment period, an estimate of the
total expenses that are necessary or
appropriate to carry out the
responsibilities of the OFR and the
Council as set out in the Dodd-Frank
Act (including an amount necessary to
reimburse reasonable implementation
expenses of the Corporation that shall
be treated as expenses of the Council
pursuant to section 210(n)(10) of the
Dodd-Frank Act).
Assessment fee rate, with regard to a
particular assessment period, means the
rate published by the Department for the
calculation of assessment fees for that
period.
Assessment payment date means:
(1) For any assessment period ending
on March 31 of a given calendar year,
September 15 of the prior calendar year;
and
(2) For any assessment period ending
on September 30 of a given calendar
year, March 15 of the same year.
Assessment period means:
(1) Any period of time beginning on
October 1 and ending on March 31 of
the following calendar year; or
(2) Any period of time beginning on
April 1 and ending on September 30 of
the same calendar year.
Bank holding company means:
(1) A bank holding company as
defined in section 2 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841);
or
(2) A foreign banking organization.
Board means the Board of Governors
of the Federal Reserve System.
Corporation means the Federal
Deposit Insurance Corporation.
Council means the Financial Stability
Oversight Council.
Department means the Department of
the Treasury.
Determination date means:
(1) For any assessment period ending
on March 31 of a given calendar year,
April 30 of the prior calendar year; and
(2) For any assessment period ending
on September 30 of a given calendar
year, October 31 of the prior calendar
year.
Dodd-Frank Act means the DoddFrank Wall Street Reform and Consumer
Protection Act.
Foreign banking organization means a
foreign bank or company that is treated
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as a bank holding company for purposes
of the Bank Holding Company Act of
1956, pursuant to section 8(a) of the
International Banking Act of 1978 (12
U.S.C. 3106(a)).
OFR means the Office of Financial
Research established by section 152 of
the Dodd-Frank Act.
Total assessable assets means:
(1) For a bank holding company other
than a foreign banking organization, the
average of the company’s total
consolidated assets for the four quarters
preceding the relevant determination
date, as reported on the bank holding
company’s four most recent
Consolidated Financial Statements for
Bank Holding Companies—FR Y–9C
filings;
(2) For any foreign banking
organization, the average of the
company’s total assets of combined U.S.
operations for the four quarters
preceding the relevant determination
date, as reported on the foreign banking
organization’s four most recent quarterly
Capital and Asset Report for Foreign
Banking Organizations—FR Y–7Q
filings, or, if the foreign banking
organization only files such form
annually, the average of the two most
recent annual filings on such form; or
(3) For a nonbank financial company
that the Council has determined under
section 113 of the Dodd-Frank Act shall
be supervised by the Board, either the
average of the company’s total
consolidated assets for the four quarters
preceding the relevant determination
date, if the company is a U.S. company,
or the average of the total assets of the
company’s combined U.S. operations for
the four quarters preceding the relevant
determination date, if the company is a
non-U.S. company.
§ 150.3 Determination of assessed
companies.
(a) The determination that a bank
holding company or a nonbank financial
company is an assessed company will
be made by the Department.
(b) The Department will apply the
following principles in determining
whether a company is an assessed
company:
(1) For tiered bank holding companies
for which a holding company owns or
controls, or is owned or controlled by,
other holding companies, the assessed
company shall be the top-tier, regulated
holding company.
(2) In situations where more than one
top-tier, regulated bank holding
company has a legal authority for
control of a U.S. bank, each of the toptier regulated holding companies shall
be designated as an assessed company.
VerDate Sep<11>2014
17:22 Nov 01, 2019
Jkt 250001
(3) In situations where a company has
not filed four consecutive quarters of the
financial reports referenced above for
the most recent quarters (or two
consecutive years for annual filers of the
FR Y–7Q or successor form), such as
may be true for companies that recently
converted to a bank holding company,
the Department will use, at its
discretion, other financial or annual
reports filed by the company, such as
Securities and Exchange Commission
(SEC) filings, to determine a company’s
total consolidated assets.
(4) In situations where a company
does not report total consolidated assets
in its public reports or where a company
uses a financial reporting methodology
other than U.S. generally accepted
accounting principles (GAAP) to report
on its U.S. operations, the Department
will use, at its discretion, any
comparable financial information that
the Department may require from the
company for this determination.
(c) Any company that the Department
determines is an assessed company on
a given determination date will be an
assessed company for the entire
assessment period related to such
determination date, and will be subject
to the full assessment fee for that
assessment period, regardless of any
changes in the company’s assets or other
attributes that occur after the
determination date.
§ 150.4
Calculation of assessment basis.
For each assessment period, the
Department will calculate an assessment
basis that shall be sufficient to replenish
the Financial Research Fund to a level
equivalent to the sum of:
(a) Budgeted operating expenses for
the OFR for the applicable assessment
period;
(b) Budgeted operating expenses for
the Council for the applicable
assessment period;
(c) Budgeted capital expenses for the
OFR for the 12-month period beginning
on the first day of the applicable
assessment period;
(d) Budgeted capital expenses for the
Council for the 12-month period
beginning on the first day of the
applicable assessment period; and
(e) An amount necessary to reimburse
reasonable implementation expenses of
the Federal Deposit Insurance
Corporation as provided under section
210(n)(10) of the Dodd-Frank Act.
§ 150.5
Calculation of assessments.
(a) For each assessed company, the
Department will calculate the total
assessable assets in accordance with the
definition in § 150.2.
PO 00000
Frm 00010
Fmt 4702
Sfmt 4702
(b) The Department will allocate the
assessment basis to the assessed
companies in the following manner:
(1) Based on the sum of all assessed
companies’ total assessable assets, the
Department will calculate the
assessment fee rate necessary to collect
the assessment basis for the applicable
assessment period.
(2) The assessment payable by an
assessed company for each assessment
period shall be equal to the assessment
fee rate for that assessment period
multiplied by the total assessable assets
of such assessed company.
§ 150.6 Notice and payment of
assessments.
(a) No later than fifteen calendar days
after the determination date, the
Department will send to each assessed
company a statement that:
(1) Confirms that such company has
been determined by the Department to
be an assessed company; and
(2) States the total assessable assets
that the Department has determined will
be used for calculating the company’s
assessment.
(b) If a company that is required to
make an assessment payment for a given
assessment period believes that the
statement referred to in paragraph (a) of
this section contains an error, the
company may provide the Department
with a written request for a revised
statement. Such request must be
received by the Department via email
within 30 calendar days and must
include all facts that the company
requests the Department to consider.
The Department will respond to all such
requests within 21 calendar days of
receipt thereof.
(c) No later than the 14 calendar days
prior to the payment date for a given
assessment period, the Department will
send an electronic billing notification to
each assessed company, containing the
final assessment that is required to be
paid by such assessed company.
(d) For the purpose of making the
payments described in § 150.5, each
assessed company shall designate a
deposit account for direct debit by the
Department through www.pay.gov or
successor website. No later than the
later of 30 days prior to the payment
date for an assessment period, or
[EFFECTIVE DATE OF THE FINAL
RULE], each such company shall
provide notice to the Department of the
account designated, including all
information and authorizations required
by the Department for direct debit of the
account. After the initial notice of the
designated account, no further notice is
required unless the company designates
a different account for assessment debit
E:\FR\FM\04NOP1.SGM
04NOP1
Federal Register / Vol. 84, No. 213 / Monday, November 4, 2019 / Proposed Rules
by the Department, in which case the
requirements of the preceding sentence
apply.
(e) Each assessed company shall take
all actions necessary to allow the
Department to debit assessments from
such company’s designated deposit
account. Each such company shall, prior
to each assessment payment date,
ensure that funds in an amount at least
equal to the amount on the relevant
electronic billing notification are
available in the designated deposit
account for debit by the Department.
Failure to take any such action or to
provide such funding of the account
shall be deemed to constitute
nonpayment of the assessment. The
Department will cause the amount
stated in the applicable electronic
billing notification to be directly debited
on the appropriate payment date from
the deposit account so designated.
(f) In the event that, for a given
assessment period, an assessed
company materially misstates or
misrepresents any information that is
used by the Department in calculating
that company’s total assessable assets,
the Department may at any time recalculate the assessment payable by that
company for that assessment period,
and the assessed company shall take all
actions necessary to allow the
Department to immediately debit any
additional payable amounts from such
assessed company’s designated deposit
account.
(g) If a due date under this section
falls on a date that is not a business day,
the applicable date shall be the next
business day.
Dated: October 28, 2019.
Kipp Kranbuhl,
Principal Deputy Assistant Secretary,
Financial Markets, Department of the
Treasury.
[FR Doc. 2019–23906 Filed 11–1–19; 8:45 am]
BILLING CODE 4810–25–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R06–OAR–2019–0043; FRL–10001–
20–Region 6]
Air Plan Approval; Texas; Revisions To
Control of Air Pollution by Permits for
New Construction or Modification
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
Pursuant to the Federal Clean
Air Act (CAA or the Act), the United
SUMMARY:
VerDate Sep<11>2014
17:22 Nov 01, 2019
Jkt 250001
States Environmental Protection Agency
(U.S. EPA) is proposing to approve
revisions to the Texas (TX) State
Implementation Plan (SIP) submitted on
February 22, 2019 that revise the State’s
New Source Review (NSR) permitting
rules contained in Title 30 of the Texas
Administrative Code (TAC) Chapter
116. The EPA is also addressing
portions of an April 16, 2014, SIP
submittal pertaining to provisions
regarding Greenhouse Gas (GHG)
emissions that were invalidated by the
United States Supreme Court. The
February 22, 2019, SIP submittal
appropriately revises the April 16, 2014,
SIP provisions that were impacted by
the Court’s ruling.
DATES: Written comments must be
received on or before December 4, 2019.
ADDRESSES: Submit your comments,
identified by Docket No. 2017–1641–
RUL, at https://www.regulations.gov or
via email to layton.elizabeth@epa.gov.
Follow the online instructions for
submitting comments. Once submitted,
comments cannot be edited or removed
from Regulations.gov. The EPA may
publish any comment received to its
public docket. Do not submit
electronically any information you
consider to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Multimedia submissions (audio, video,
etc.) must be accompanied by a written
comment. The written comment is
considered the official comment and
should include discussion of all points
you wish to make. The EPA will
generally not consider comments or
comment contents located outside of the
primary submission (i.e., on the web,
cloud, or other file sharing system). For
additional submission methods, please
contact Elizabeth Layton, 214–665–
2136, layton.elizabeth@epa.gov. For the
full EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www.epa.gov/dockets/
commenting-epa-dockets.
Docket: The index to the docket for
this action is available electronically at
www.regulations.gov and in hard copy
at the U.S. EPA Region 6, 1201 Elm
Street, Suite 500, Dallas, Texas 75270.
While all documents in the docket are
listed in the index, some information
may be publicly available only at the
hard copy location (e.g., copyrighted
material), and some may not be publicly
available at either location (e.g., CBI).
FOR FURTHER INFORMATION CONTACT:
Elizabeth Layton, Air Permits Section
(ARPE), U.S. EPA Region 6, 1201 Elm
Street, Suite 500, Dallas, TX 75270,
PO 00000
Frm 00011
Fmt 4702
Sfmt 4702
59325
214–665–2136, layton.elizabeth@
epa.gov. To inspect the hard copy
materials, please schedule an
appointment with Ms. Elizabeth Layton
or Mr. Bill Deese at 214–665–7253.
SUPPLEMENTARY INFORMATION:
Throughout this document wherever
‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean
the United States Environmental
Protection Agency.
I. Background
Section 110(a)(2)(C) of the CAA
requires states to develop and submit to
the EPA for approval into the SIP,
preconstruction review and permitting
programs applicable to certain new and
modified stationary sources of air
pollutants for attainment and
nonattainment areas that cover both
major and minor new sources and
modifications, collectively referred to as
the New Source Review (NSR) SIP. The
CAA NSR SIP program is composed of
three separate programs: Prevention of
Significant Deterioration (PSD),
Nonattainment New Source Review
(NNSR), and Minor NSR. The EPA
codified minimum requirements for
these State permitting programs
including public participation and
notification requirements at 40 CFR
51.160–51.164. Requirements specific to
construction of new stationary sources
and major modifications in
nonattainment areas are codified in 40
CFR 51.165 for the NNSR program.
Requirements for permitting of new
stationary sources and major
modifications in attainment areas
subject to PSD, including additional
public participation requirements, are
found at 40 CFR 51.166. This action
addresses revisions to the Texas SIP
submitted on February 22, 2019 by the
Texas Commission on Environmental
Quality (TCEQ) that amend the State’s
NSR permitting rules by amending the
criteria for air pollution control permits
for new construction or modification, as
well as make other non-substantive
revisions.
Additionally, this action addresses
portions of an April 16, 2014, Texas SIP
submittal that relate to the permitting of
Greenhouse Gas Emissions (GHGs) for
Step 2 or ‘‘non-anyway’’ sources.1 The
April 2014 submittal was affected by a
United States Supreme Court ruling
titled Utility Air Regulatory Group
(UARG) v. EPA (134 S.Ct. 2427 (2014))
where the Court invalidated those
portions of the federal rules that related
1 For more detailed information please see our
Federal Register action at 79 FR 66626 (November
10, 2014). Step 2 or ‘‘non-anyway’’ sources are
sources that that would have been considered
‘‘major’’ under EPA’s permitting program for PSD
only because of their greenhouse gas emissions.
E:\FR\FM\04NOP1.SGM
04NOP1
]]>Agencies
[Federal Register Volume 84, Number 213 (Monday, November 4, 2019)]
[Proposed Rules]
[Pages 59320-59325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23906]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
31 CFR Part 150
RIN 1505-AC59
Assessment of Fees on Certain Bank Holding Companies and Nonbank
Financial Companies Supervised by the Federal Reserve Board To Cover
the Expenses of the Financial Research Fund
AGENCY: Departmental Offices, Treasury.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury (``Treasury'') is requesting
comment on a proposed rule to implement section 401 of the Economic
Growth, Regulatory Relief, and Consumer Protection Act (the ``Economic
Growth Act''), which amends section 155 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (the ``Dodd-Frank Act''). As
amended, section 155 requires the Secretary of the Treasury to
establish, by regulation, an assessment schedule applicable to bank
holding companies with total consolidated assets of $250 billion or
greater and nonbank financial companies supervised by the Board of
Governors of the Federal Reserve System (``the Board''), to collect
assessments equal to the total expenses of the Office of Financial
Research (the ``OFR''). The Department is also proposing other
amendments to the part to simplify the method for determining the
amount of total assessable assets for foreign banking organizations,
which have been made possible by the introduction of a new regulatory
data source.
DATES: Comments must be received by December 4, 2019.
ADDRESSES: Submit comments electronically through the Federal
eRulemaking Portal at https://www.regulations.gov, or by mail to: U.S.
Department of the Treasury, Office of Financial Research, Attn: John
Zitko, 717 14th Street NW, Washington, DC 20220. Because mail in the
Washington, DC area may be subject to delay, it is recommended that
comments be submitted electronically. Please include your name,
affiliation, address, email address, and telephone number in your
comment. Comments will be available for public inspection on
www.regulations.gov. In general, all comments received, including
attachments and other supporting materials, are part of the public
record and will be made available to the public. Do not submit any
information in your comment or supporting materials that you consider
confidential or inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT: John Zitko, Senior Counsel, OFR, (202)
927-8372, [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
Section 155(d) of the Dodd-Frank Act directs the Secretary of the
Treasury to establish, by regulation, and with the approval of the
Financial Stability Oversight Council (the ``Council''), an assessment
schedule to collect assessments from certain companies equal to the
total expenses of the OFR. Included in the OFR's expenses are expenses
of the Council, pursuant to section 118 of the Dodd-Frank Act, and
certain expenses of the Federal Deposit Insurance Corporation (the
``FDIC''), pursuant to section 210 of the Dodd-Frank Act. Section 401
of the Economic Growth Act, Public Law 115-174, also provides that any
bank holding company, regardless of asset size, that has been
identified as a global systemically important bank (``G-SIB'') under
Sec. 217.402 of title 12, Code of Federal Regulations, shall be
considered a bank holding company with total consolidated assets equal
to or greater than $250 billion for purposes of section 155(d) of the
Dodd-Frank Act. On May 21, 2012, Treasury published a final regulation
implementing section 155(d) in the Federal Register, codified at 31 CFR
part 150 (the ``Original Rules''). Before the enactment of the Economic
Growth Act, pursuant to section 155(d) and the implementing regulation,
Treasury collected assessments from bank holding companies with total
consolidated assets of $50,000,000,000 or greater and nonbank financial
companies supervised by the Board.
On May 24, 2018, the Economic Growth Act was signed into law.
Section 401(c)(1) of the Economic Growth Act replaced the $50 billion
reference in section 155(d) of the Dodd-Frank Act with $250 billion. In
addition, section 401(f) of the Economic Growth Act required any bank
holding company identified as a G-SIB pursuant
[[Page 59321]]
to 12 CFR 217.402 to be considered a bank holding company with total
consolidated assets equal to or greater than $250 billion for purposes
of section 155(d) of the Dodd-Frank Act. As a result of this statutory
amendment, bank holding companies with less than $250 billion in total
consolidated assets that are not G-SIBs are not to be assessed under
Dodd-Frank Act section 155(d).
The Economic Growth Act sets forth two different effective dates.
For bank holding companies with total consolidated assets of less than
$100 billion, it became effective on May 24, 2018 (the date of
enactment). For bank holding companies with total consolidated assets
of $100 billion or more and for G-SIBs, the effective date is November
24, 2019 (18 months after the date of enactment). This proposed rule
is, in part, intended to implement section 401.
Under section 118 of the Dodd-Frank Act, the expenses of the
Council are treated as expenses of, and are paid by, the OFR. In
addition, under section 210 of the Dodd-Frank Act, certain
implementation expenses of the FDIC associated with the FDIC's orderly
liquidation authority are treated as expenses of the Council,\1\ and
the FDIC is directed to periodically submit requests for reimbursement
to the Chairperson of the Council. The total expenses for the OFR
therefore include the combined expenses of the OFR and the Council and
certain expenses of the FDIC. All of these expenses are paid out of the
Financial Research Fund (the ``FRF''), a fund managed by Treasury.
---------------------------------------------------------------------------
\1\ Under Section 210(n)(10)(C) of the Dodd-Frank Act the term
implementation expenses ``(i) means costs incurred by [the FDIC]
beginning on the date of enactment of this Act, as part of its
efforts to implement [Title II] that do not relate to a particular
covered financial company; and (ii) includes the costs incurred in
connection with the development of policies, procedures, rules, and
regulations and other planning activities of the [FDIC] consistent
with carrying out [Title II].''
---------------------------------------------------------------------------
The Council was established by the Dodd-Frank Act to identify risks
to U.S. financial stability, promote market discipline, and respond to
emerging threats to the stability of the U.S. financial system. The
Council is chaired by the Secretary of the Treasury, and its 15 members
include all of the federal financial regulators, an independent member
with insurance expertise appointed by the President, and state
financial regulators.
The OFR was established within Treasury by the Dodd-Frank Act to
support the Council and its member agencies. Among the OFR's key duties
are:
Collecting data on behalf of the Council and proving such
data to the Council and member agencies;
Standardizing the types and formats of data reported and
collected;
Performing research;
Developing tools for risk measurement and monitoring; and
Reporting to Congress and the public on the OFR's
assessment of significant financial market developments and potential
emerging threats to U.S. financial stability.
II. This Proposed Rule
Under this proposed rule, Treasury would implement the changes to
the FRF assessments required by the Economic Growth Act. The proposed
rule would also make certain other amendments to 31 CFR part 150 to
simplify the method for determining the amount of total assessable
assets for certain entities and would remove outdated references to the
initial assessment period, which concluded in 2013, and other non-
substantive changes to add clarifying or remove redundant language.
Treasury is seeking comments on all aspects of this proposed
rulemaking.
a. Determination of Assessed Companies
To impose assessments under section 155 of the Dodd-Frank Act,
Treasury must identify companies that are subject to the assessment. As
described in the Original Rules, and below, Treasury works closely with
the Board to determine the population of assessed companies.
The original text of Dodd-Frank Act section 155(d) required
assessments to be collected from bank holding companies with total
consolidated assets of $50 billion or greater and nonbank financial
companies supervised by the Board. The Economic Growth Act raised the
asset threshold for bank holding companies to $250 billion and also
stated that a bank holding company, regardless of asset size, that has
been identified as a G-SIB under Sec. 217.402 of title 12, Code of
Federal Regulations, shall be considered a bank holding company with
total consolidated assets equal to or greater than $250 billion for
purposes of section 155(d) of the Dodd-Frank Act.
Accordingly, we are proposing changes to the definitions of
``Assessed Company'' and ``Total Assessable Assets'' in 12 CFR 150.2,
as well as the deletion of a reference to foreign banking organizations
with less than $50 billion in 12 CFR 150.5, in accordance with the
clear mandate of the Economic Growth Act with respect to an increase in
the asset threshold from $50 billion to $250 billion and the inclusion
of G-SIBs within the scope of companies subject to assessments under
section 155.
b. Determination of Total Assessable Assets
i. Foreign Banking Organizations
At the time of adoption of the Original Rules, there was no single
regulatory reporting form that provided a foreign banking
organization's total assets of combined U.S. operations, including its
U.S. branches, agencies, and subsidiaries. The preamble to the Original
Rules specifically noted the possibility that reporting requirements
for foreign banking organizations would change over time and that the
list of reports would need to be adjusted.\2\ To allow for the
possibility of these changes, the Original Rules did not include a list
of specific reference reports for foreign banking organizations, in
contrast to U.S. bank holding companies. It was noted that calculating
banking organizations' total assets of combined U.S. operations based
on multiple reports could result in double-counting.\3\ The preamble to
the Original Rules stated that Treasury would make every effort to
avoid double-counting, consulting with the Board and the affected firms
as necessary, and that any questions could be addressed through the
appeals process.\4\
---------------------------------------------------------------------------
\2\ 77 FR 29890 (May 21, 2012).
\3\ 77 FR 29888-89 (May 21, 2012).
\4\ 77 FR 29889 (May 21, 2012).
\5\ See Federal Reserve, The Capital and Asset Report for
Foreign Banking Organizations--FR Y-7Q, available at https://www.federalreserve.gov/reportforms/forms/FR_Y-7Q20190331_f.pdf.
---------------------------------------------------------------------------
After the adoption of the Original Rules, the Board modified its
form FR Y-7Q by adding a line item for reporting the total combined
assets of a foreign banking organization's U.S. operations. Line item 6
of part 1A of FR Y-7Q now requires reporting of the total combined
assets of a top-tier foreign banking organization's U.S.-domiciled
affiliates, branches, and agencies, excluding intercompany balances and
intercompany transactions between those entities to the extent such
items are not already eliminated in consolidation.\5\ Accordingly, to
simplify the method for determining the amount of total assessable
assets for foreign banking organizations and to adopt an approach for
foreign banking organizations that is comparable to the approach under
the Original Rules for U.S. bank holding companies, we are proposing
changes to the definition of
[[Page 59322]]
``total assessable assets'' by specifying that the calculation of a
foreign banking organization's total assessable assets shall be based
on the data reported in the FR Y-7Q.
ii. Timing of Determination Dates, Billing, and Collection
Under the Original Rules, assessments are semiannual. On the
specified determination date before each assessment period, Treasury
determines the pool of assessed companies, which receive confirmation
statements. After any appeals, assessments are debited from assessed
companies' accounts on the assessment payment date.
The Original Rules generally use a period of four calendar quarters
to measure the total assessable assets of both U.S. and foreign
entities for assessments. Thus, for the assessment period with a
November 30 determination date, total assessable assets are based on
the company's regulatory filings for the fourth quarter of the previous
calendar year and the first three quarters of the same calendar year.
For the assessment period with a May 31 determination date, total
assessable assets are based on the company's filings for the last three
quarters of the previous year and the first quarter of the same
calendar year.
Both the Federal Reserve's form FR Y-9C, which the Original Rules
require to be used to determine total assessable assets of U.S. bank
holding companies, and the FR Y-7Q, which we are now proposing to use
to determine the total assessable assets of foreign banking
organizations, are quarterly reports. Their filing deadlines, however,
are asynchronous, as the FR Y-9C generally must be filed within 40
calendar days after each calendar quarter,\6\ and the FR Y-7Q generally
must be filed within 90 calendar days after the quarter ends. The
timing of updated reports therefore varies. For example, on the
determination date of May 31 under the Original Rules, the FR Y-9C
reports are already available for Q1 of the same year, but Q1 reports
on FR Y-7Q are not due until approximately one month later (June 29).
To enable consistency in the timing of determining assessable
assets for U.S. and foreign entities we are proposing to move each of
the two semiannual determination dates one month earlier. Accordingly,
the first determination date in each calendar year would be April 30
instead of the current May 31, and the second determination date would
be October 31, instead of November 30. This proposed change would
enable each assessment to be based on companies' filings for the last
two calendar quarters of the previous year and the first two quarters
of the current calendar year for assessment periods with an October 31
determination date, and all four quarters of the previous calendar year
for assessment periods with an April 30 determination date.
Consistent with Treasury's existing process, before each assessment
period, after determining the pool of assessed companies and publishing
an assessment fee rate, Treasury will calculate the assessment fee for
each assessed company, send an electronic billing notification to each
assessed company, and, on the assessment payment date, initiate a
direct debit to each company's account through www.pay.gov to collect
the assessments. Treasury proposes to retain the existing process, with
one additional month added to the beginning of each cycle, as described
above, while keeping the existing dates for the notice of fees,
billing, and payment. In order to provide additional clarity as to when
redetermination requests must be received from companies wishing to
appeal their status as an assessed company or the total assessable
assets that the Department has determined will be used for calculating
the company's assessment, Treasury proposes to amend the reference to
such date in 12 CFR 150.6(b) from ``one month'' to ``30 calendar
days.''
The table below shows approximate dates of the proposed assessment
billing and collection process:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Initial response
Determination Confirmation Redetermination to Publication of
Assessment period date statement date request deadline redetermination notice of fees * Billing date Payment date
request
--------------------------------------------------------------------------------------------------------------------------------------------------------
1st semiannual assessment October 31..... November 15 (or 30 calendar days 21 calendar days February 15 (or March 1 (or March 15 (or
period (April-September). next business from date of from receipt of next business prior business next business
day). Confirmation Redetermination day). day). day).
Statement. Request.
2nd semiannual assessment April 30....... May 15 (or next 30 calendar days 21 calendar days August 15 (or September 1 (or September 15
period (October-March). business day). from date of from receipt of next business prior business (or next
Confirmation Redetermination day). day). business day).
Statement. Request.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Rate published in the Notice of Fees.
The timeframe for sending confirmation statements and receiving
appeals would remain the same. Specifically, confirmation statements
would continue to be mailed no later than 15 calendar days after the
determination date, and appeals by assessable companies would continue
to be due one month later. In addition to promoting consistent
measurements of U.S. and foreign entities, as noted above, adding a
month to the beginning of the FRF assessments cycle would also afford
assessed companies additional time to address appeals and make payment
arrangements, and would provide Treasury additional time to calculate
assessments and administer the billing process.
---------------------------------------------------------------------------
\6\ Reports as of December 31 are due 45 calendar days later.
---------------------------------------------------------------------------
III. Administrative Law Matters
a. Regulatory Flexibility Act
Congress enacted the Regulatory Flexibility Act (the ``RFA'') to
address concerns related to the effects of agency rules on small
entities.\7\ Treasury is sensitive to the impact its rules may impose
on small entities. The RFA requires agencies either to provide an
initial regulatory flexibility analysis with a proposed rule for which
general notice of proposed rulemaking is required, or to certify that
the proposed rule will not have a significant economic impact on a
substantial number of small entities.\8\
---------------------------------------------------------------------------
\7\ 5 U.S.C. 601 et seq.
\8\ 5 U.S.C. 603(a).
---------------------------------------------------------------------------
Under regulations issued by the Small Business Administration, a
``small entity'' includes those firms within the ``Finance and
Insurance'' sector with asset sizes that vary from $7.5 million in
assets to $550 million or less in assets.\9\ For purposes of the RFA,
entities that are banks are considered small entities if their assets
are less than or equal to $550 million.
---------------------------------------------------------------------------
\9\ 13 CFR 121.201.
---------------------------------------------------------------------------
[[Page 59323]]
As discussed above, under section 155 of the Dodd-Frank Act, as
amended by the Economic Growth Act, only bank holding companies with
more than $250 billion in total consolidated assets, G-SIBs, and
nonbank financial companies supervised by the Board will be subject to
assessments under this proposed rule. As such, this proposed rule will
not apply to small entities and a regulatory flexibility analysis is
not required.
Pursuant to the Regulatory Flexibility Act, 5 U.S.C. 605(b), it is
hereby certified that this proposed rule will not, if promulgated, have
a significant economic impact on a substantial number of small
entities.
b. Paperwork Reduction Act
We estimate that there are certain direct costs associated with
complying with these rules. On a one-time basis, assessed entities
would be required to set up a bank account for fund transfers and
provide the required information to Treasury through an information
collection form. The form includes bank account routing information and
contact information for the individuals at the company that will be
responsible for setting up the account and ensuring that funds are
available on the billing date. We estimate that approximately 20
companies could be affected, and that completing the form and
submitting it to Treasury would take approximately 15 minutes. The
aggregate paperwork burden is estimated at 5.0 hours. However, all of
these companies have already established an account for payments or
collections to the U.S. government pursuant to the Original Rules.
On a semiannual basis, assessed companies have the opportunity to
review the confirmation statement and assessment bill. The Original
Rules do not require the companies to conduct this review, but do
permit it. We anticipate that at least some of the companies will
conduct reviews, in part because the cost associated with it is very
low.
The collection of information contained in this proposed rule has
been submitted to the Office of Management and Budget (OMB) for review
under the requirements of the Paperwork Reduction Act, 44 U.S.C.
3507(d).
Organizations and individuals desiring to submit comments
concerning the collection of information in the proposed rule should
direct them to: U.S. Office of Management and Budget, Attn: Desk
Officer for the Department of the Treasury, Office of Information and
Regulatory Affairs, Washington, DC 20503, or by email to
[email protected]. A copy of the comments should also be sent
to Treasury at the addresses previously specified. Comments on the
collection of information should be received by January 3, 2020.
Treasury specifically invites comments on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the mission of Treasury, and whether the information will have
practical utility; (b) the accuracy of the estimate of the burden of
the collections of information (see below); (c) ways to enhance the
quality, utility, and clarity of the information collection; (d) ways
to minimize the burden of the information collection, including through
the use of automated collection techniques or other forms of
information technology; and (e) estimates of capital or start-up costs
and costs of operation, maintenance, and purchase of services to
maintain the information.
The information collections are included in Sec. 150.6.
c. Regulatory Planning and Review (Executive Orders 12866 and 13563)
This rule is not a significant regulatory action as defined in
section 3(f) of Executive Order 12866 as supplemented by Executive
Order 12563.
List of Subjects in 31 CFR Part 150
Bank holding companies, Financial Research Fund, Nonbank financial
companies.
0
For the reasons set forth in the preamble, Treasury proposes to revise
title 31, part 150, of the Code of Federal Regulations to read as
follows:
PART 150--FINANCIAL RESEARCH FUND
Sec.
150.1 Scope.
150.2 Definitions.
150.3 Determination of assessed companies.
150.4 Calculation of assessment basis.
150.5 Calculation of assessments.
150.6 Notice and payment of assessments.
Authority: 12 U.S.C. 5345; 31 U.S.C. 321; 12 U.S.C. 5365 note
(Section 401(d), Pub. L. 115-174, 132 Stat. 1358; Section 401(f),
Pub. L. 115-174, 132 Stat. 1359).
Sec. 150.1 Scope.
The assessments contained in this part are made pursuant to the
authority contained in 12 U.S.C. 5345.
Sec. 150.2 Definitions.
As used in this part:
Assessed company means:
(1) A bank holding company that has $250 billion or more in total
assessable assets; or
(2) A bank holding company, regardless of asset size, that has been
identified as a global systemically important bank holding company
under Sec. 217.402 of title 12, Code of Federal Regulations; or
(3) A nonbank financial company that the Council has determined
under section 113 of the Dodd-Frank Act shall be supervised by the
Board.
Assessment basis means, for a given assessment period, an estimate
of the total expenses that are necessary or appropriate to carry out
the responsibilities of the OFR and the Council as set out in the Dodd-
Frank Act (including an amount necessary to reimburse reasonable
implementation expenses of the Corporation that shall be treated as
expenses of the Council pursuant to section 210(n)(10) of the Dodd-
Frank Act).
Assessment fee rate, with regard to a particular assessment period,
means the rate published by the Department for the calculation of
assessment fees for that period.
Assessment payment date means:
(1) For any assessment period ending on March 31 of a given
calendar year, September 15 of the prior calendar year; and
(2) For any assessment period ending on September 30 of a given
calendar year, March 15 of the same year.
Assessment period means:
(1) Any period of time beginning on October 1 and ending on March
31 of the following calendar year; or
(2) Any period of time beginning on April 1 and ending on September
30 of the same calendar year.
Bank holding company means:
(1) A bank holding company as defined in section 2 of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841); or
(2) A foreign banking organization.
Board means the Board of Governors of the Federal Reserve System.
Corporation means the Federal Deposit Insurance Corporation.
Council means the Financial Stability Oversight Council.
Department means the Department of the Treasury.
Determination date means:
(1) For any assessment period ending on March 31 of a given
calendar year, April 30 of the prior calendar year; and
(2) For any assessment period ending on September 30 of a given
calendar year, October 31 of the prior calendar year.
Dodd-Frank Act means the Dodd-Frank Wall Street Reform and Consumer
Protection Act.
Foreign banking organization means a foreign bank or company that
is treated
[[Page 59324]]
as a bank holding company for purposes of the Bank Holding Company Act
of 1956, pursuant to section 8(a) of the International Banking Act of
1978 (12 U.S.C. 3106(a)).
OFR means the Office of Financial Research established by section
152 of the Dodd-Frank Act.
Total assessable assets means:
(1) For a bank holding company other than a foreign banking
organization, the average of the company's total consolidated assets
for the four quarters preceding the relevant determination date, as
reported on the bank holding company's four most recent Consolidated
Financial Statements for Bank Holding Companies--FR Y-9C filings;
(2) For any foreign banking organization, the average of the
company's total assets of combined U.S. operations for the four
quarters preceding the relevant determination date, as reported on the
foreign banking organization's four most recent quarterly Capital and
Asset Report for Foreign Banking Organizations--FR Y-7Q filings, or, if
the foreign banking organization only files such form annually, the
average of the two most recent annual filings on such form; or
(3) For a nonbank financial company that the Council has determined
under section 113 of the Dodd-Frank Act shall be supervised by the
Board, either the average of the company's total consolidated assets
for the four quarters preceding the relevant determination date, if the
company is a U.S. company, or the average of the total assets of the
company's combined U.S. operations for the four quarters preceding the
relevant determination date, if the company is a non-U.S. company.
Sec. 150.3 Determination of assessed companies.
(a) The determination that a bank holding company or a nonbank
financial company is an assessed company will be made by the
Department.
(b) The Department will apply the following principles in
determining whether a company is an assessed company:
(1) For tiered bank holding companies for which a holding company
owns or controls, or is owned or controlled by, other holding
companies, the assessed company shall be the top-tier, regulated
holding company.
(2) In situations where more than one top-tier, regulated bank
holding company has a legal authority for control of a U.S. bank, each
of the top-tier regulated holding companies shall be designated as an
assessed company.
(3) In situations where a company has not filed four consecutive
quarters of the financial reports referenced above for the most recent
quarters (or two consecutive years for annual filers of the FR Y-7Q or
successor form), such as may be true for companies that recently
converted to a bank holding company, the Department will use, at its
discretion, other financial or annual reports filed by the company,
such as Securities and Exchange Commission (SEC) filings, to determine
a company's total consolidated assets.
(4) In situations where a company does not report total
consolidated assets in its public reports or where a company uses a
financial reporting methodology other than U.S. generally accepted
accounting principles (GAAP) to report on its U.S. operations, the
Department will use, at its discretion, any comparable financial
information that the Department may require from the company for this
determination.
(c) Any company that the Department determines is an assessed
company on a given determination date will be an assessed company for
the entire assessment period related to such determination date, and
will be subject to the full assessment fee for that assessment period,
regardless of any changes in the company's assets or other attributes
that occur after the determination date.
Sec. 150.4 Calculation of assessment basis.
For each assessment period, the Department will calculate an
assessment basis that shall be sufficient to replenish the Financial
Research Fund to a level equivalent to the sum of:
(a) Budgeted operating expenses for the OFR for the applicable
assessment period;
(b) Budgeted operating expenses for the Council for the applicable
assessment period;
(c) Budgeted capital expenses for the OFR for the 12-month period
beginning on the first day of the applicable assessment period;
(d) Budgeted capital expenses for the Council for the 12-month
period beginning on the first day of the applicable assessment period;
and
(e) An amount necessary to reimburse reasonable implementation
expenses of the Federal Deposit Insurance Corporation as provided under
section 210(n)(10) of the Dodd-Frank Act.
Sec. 150.5 Calculation of assessments.
(a) For each assessed company, the Department will calculate the
total assessable assets in accordance with the definition in Sec.
150.2.
(b) The Department will allocate the assessment basis to the
assessed companies in the following manner:
(1) Based on the sum of all assessed companies' total assessable
assets, the Department will calculate the assessment fee rate necessary
to collect the assessment basis for the applicable assessment period.
(2) The assessment payable by an assessed company for each
assessment period shall be equal to the assessment fee rate for that
assessment period multiplied by the total assessable assets of such
assessed company.
Sec. 150.6 Notice and payment of assessments.
(a) No later than fifteen calendar days after the determination
date, the Department will send to each assessed company a statement
that:
(1) Confirms that such company has been determined by the
Department to be an assessed company; and
(2) States the total assessable assets that the Department has
determined will be used for calculating the company's assessment.
(b) If a company that is required to make an assessment payment for
a given assessment period believes that the statement referred to in
paragraph (a) of this section contains an error, the company may
provide the Department with a written request for a revised statement.
Such request must be received by the Department via email within 30
calendar days and must include all facts that the company requests the
Department to consider. The Department will respond to all such
requests within 21 calendar days of receipt thereof.
(c) No later than the 14 calendar days prior to the payment date
for a given assessment period, the Department will send an electronic
billing notification to each assessed company, containing the final
assessment that is required to be paid by such assessed company.
(d) For the purpose of making the payments described in Sec.
150.5, each assessed company shall designate a deposit account for
direct debit by the Department through www.pay.gov or successor
website. No later than the later of 30 days prior to the payment date
for an assessment period, or [EFFECTIVE DATE OF THE FINAL RULE], each
such company shall provide notice to the Department of the account
designated, including all information and authorizations required by
the Department for direct debit of the account. After the initial
notice of the designated account, no further notice is required unless
the company designates a different account for assessment debit
[[Page 59325]]
by the Department, in which case the requirements of the preceding
sentence apply.
(e) Each assessed company shall take all actions necessary to allow
the Department to debit assessments from such company's designated
deposit account. Each such company shall, prior to each assessment
payment date, ensure that funds in an amount at least equal to the
amount on the relevant electronic billing notification are available in
the designated deposit account for debit by the Department. Failure to
take any such action or to provide such funding of the account shall be
deemed to constitute nonpayment of the assessment. The Department will
cause the amount stated in the applicable electronic billing
notification to be directly debited on the appropriate payment date
from the deposit account so designated.
(f) In the event that, for a given assessment period, an assessed
company materially misstates or misrepresents any information that is
used by the Department in calculating that company's total assessable
assets, the Department may at any time re-calculate the assessment
payable by that company for that assessment period, and the assessed
company shall take all actions necessary to allow the Department to
immediately debit any additional payable amounts from such assessed
company's designated deposit account.
(g) If a due date under this section falls on a date that is not a
business day, the applicable date shall be the next business day.
Dated: October 28, 2019.
Kipp Kranbuhl,
Principal Deputy Assistant Secretary, Financial Markets, Department of
the Treasury.
[FR Doc. 2019-23906 Filed 11-1-19; 8:45 am]
BILLING CODE 4810-25-P
