Federal Government Participation in the Automated Clearing House, 42-47 [2021-28048]

Agencies

• Fiscal Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 87, Number 1 (Monday, January 3, 2022)]
[Rules and Regulations]
[Pages 42-47]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28048]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 210

Docket No. FISCAL-2021-0002
RIN 1530-AA26


Federal Government Participation in the Automated Clearing House

AGENCY: Fiscal Service, Bureau of the Fiscal Service, Treasury.

ACTION: Final rule.

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

SUMMARY: The Department of the Treasury, Bureau of the Fiscal Service 
(Fiscal Service) is adopting the changes we proposed in an August 2021 
notice of proposed rulemaking for our regulation governing the use of 
the Automated Clearing House (ACH) Network. Consistent with past 
practice, our regulation adopts, with some exceptions, the Nacha 
Operating Rules & Operating Guidelines (Operating Rules & Guidelines) 
developed and published by Nacha as the rules governing the use of the 
ACH Network by Federal agencies. We are issuing this final rule to 
address changes that Nacha has made since its publication of the 2019 
Operating Rules & Guidelines. These changes include amendments set 
forth in the 2020 and 2021 Operating Rules & Guidelines, including 
supplement #1-2021.

DATES: Effective February 2, 2022. The incorporation by reference of 
certain publications listed in the rule is approved by the Director of 
the Federal Register as of February 2, 2022.

ADDRESSES: You can download this final rule at the following website: 
fiscal.treasury.gov/ach/.

FOR FURTHER INFORMATION CONTACT: Ian Macoy, Director of Settlement 
Services, at (202) 874-6835 or [email protected]; or Frank 
J. Supik, Senior Counsel, at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On August 18, 2021, the Fiscal Service published a Notice of 
Proposed Rulemaking at 86 FR 46631 that proposed amendments to title 31 
CFR part 210 (part 210). Part 210 governs the use of the ACH Network by 
Federal agencies.
    The ACH Network is a nationwide electronic fund transfer system 
that provides for the inter-bank clearing of electronic credit and 
debit transactions and for the exchange of payment-related information 
among participating financial institutions.
    The ACH Network facilitates payment transactions between several 
participants. These participants include the:
     Originator: A company or individual that agrees to 
initiate an ACH entry according to an arrangement with a Receiver.
     Originating Depository Financial Institution (ODFI): An 
institution that receives the payment instruction from the Originator 
and forwards the ACH entry to the ACH Operator.
     ACH Operator: A central clearing facility that receives 
entries from ODFIs, distributes the entries to appropriate Receiving 
Depository Financial Institutions, and performs settlement functions 
for the financial institutions.
     Receiving Depository Financial Institution (RDFI): An 
institution that receives entries from the ACH Operator and posts them 
to the account of its depositors (Receivers).
     Receiver: An organization or consumer that has authorized 
an Originator to initiate an ACH entry to the Receiver's account with 
the RDFI.
     Third-Party Service Provider: An entity other than the 
Originator, ODFI, or RDFI that performs any functions on behalf of the 
Originator, ODFI, or RDFI in connection with processing ACH entries. 
These functions may include, for example, creating ACH files on behalf 
of an Originator or ODFI, or acting as a sending point or receiving 
point on behalf of an ODFI or RDFI.
    Rights and obligations among participants in the ACH Network are 
generally governed by Nacha's Operating Rules & Guidelines. The 
Operating Rules & Guidelines establish standards for sending and 
receiving ACH entries, provide specifications and formatting 
requirements for the electronic transmission of transaction 
information, set forth the rights and obligations of the entities 
listed above when transmitting, receiving, or returning ACH entries, 
and cover other related matters. The Operating Rules & Guidelines also 
provide guidance regarding best practices to ACH Network participants. 
There is an industry consensus that the Operating Rules & Guidelines 
provide a uniform set of standards for ACH transactions and that these 
standards enable efficient transaction processing.
    Part 210 incorporates the Operating Rules & Guidelines by 
reference, with certain exceptions. The Operating Rules & Guidelines 
govern the use of the ACH Network by financial institutions and other 
parties but must be incorporated by reference in part 210 to apply to 
the Federal Government's use of the ACH Network. From time to time, the 
Fiscal

[[Page 43]]

Service amends part 210 to address changes that Nacha periodically 
makes to the Operating Rules & Guidelines or to revise the regulation 
as otherwise appropriate. The Federal Government generally adopts 
changes to the Operating Rules & Guidelines unless the changes address 
enforcement and compliance of the Operating Rules & Guidelines, would 
adversely impact government operations, or are irrelevant to Federal 
agency participation in the ACH Network.
    Currently, part 210 incorporates the 2019 Operating Rules & 
Guidelines, subject to certain exceptions. Nacha has adopted several 
changes since the publication of the 2019 Operating Rules & Guidelines, 
as reflected in the 2021 Operating Rules & Guidelines and supplements 
thereto. The Fiscal Service is adopting most of these changes, 
consistent with the amendments proposed in the NPRM.

II. Public Comment and Fiscal Service Response

    The Fiscal Service sought public comment on the proposed rule to 
assist the agency in giving full consideration to the matters discussed 
in the NPRM. We received one substantive comment, which was submitted 
by Nacha and co-signed by nine Payments Association members (Nacha 
Comment Letter).
    The Nacha Comment Letter expressed support for the Fiscal Service's 
proposal to adopt the majority of the Operating Rules & Guidelines. The 
Nacha Comment Letter expressed particular support for the Fiscal 
Service's adoption of the revised Same Day ACH transaction dollar 
limit. In light of the NPRM's proposal to not adopt the Nacha Operating 
Rules & Guidelines' contact registry provisions, the Nacha Comment 
Letter suggested that the Fiscal Service consider alternative means of 
providing contact information to industry participants. The transaction 
dollar limit and contact registry are discussed below.
    In addition, the Nacha Comment Letter suggested that the Fiscal 
Service explore methods of adopting changes to the Nacha Operating 
Rules & Guidelines. The Fiscal Service will consider alternatives, but 
the procedures for incorporating the Nacha Operating Rules & Guidelines 
into the Code of Federal Regulations by reference are established by 
the Office of the Federal Register. These rules require, among other 
steps, that the Fiscal Service conduct a rulemaking procedure.

III. Summary of Final Rule

    During the last amendment to part 210, the Fiscal Service adopted, 
with some exceptions, Nacha's 2019 Operating Rules & Guidelines. 
Subsequently, Nacha published two versions of the Operating Rules & 
Guidelines, the 2020 Operating Rules & Guidelines and the 2021 
Operating Rules & Guidelines. The relevant 2020 changes are included in 
the 2021 version that we are incorporating by reference. Below, we 
outline the major changes that were published in these updates.

A. 2020 Operating Rules & Guidelines Changes

    The 2020 Operating Rules & Guidelines made several changes to the 
Operating Rules and Guidelines. These changes included raising the Same 
Day ACH dollar limit, differentiating the codes associated with certain 
return transactions, modifying data security requirements, clarifying 
fraud detection standards for WEB Debit transactions, and adding a new 
Same Day ACH processing window.
Same Day ACH per Transaction Dollar Limit Increase
    Nacha approved a rule change to update the Same Day ACH per 
transaction dollar limit from $100,000 to $1,000,000.\1\ At 
implementation, both Same Day ACH credits and Same Day ACH debits will 
be eligible for Same Day ACH processing up to $1,000,000 per 
transaction.
---------------------------------------------------------------------------

    \1\ This rule change was published in Supplement #1-2021 to the 
Nacha Operating Rules.
---------------------------------------------------------------------------

    We are adopting this rule, effective March 18, 2022. Acceptance of 
this rule will enable individuals and entities to make Same-Day ACH 
payments of up to $1,000,000 to the Federal Government and will enable 
Federal disbursements up to the same amount.
Differentiating Unauthorized Return Codes
    The 2020 Operating Rules & Guidelines changed the usage of certain 
Nacha ``Return Reason Codes,'' which afforded financial institutions 
more insight into the reason why a transaction was returned.
    Under the prior rules, Nacha used one Return Reason Code (the R10 
code) as a catch-all to identify transactions that were returned for 
several underlying return reasons, including some for which a valid 
authorization existed. Under the revised Rule, Nacha re-purposed 
another Return Reason Code (the R11 code) to allow ACH network 
participants to more readily identify ACH transactions that are being 
returned due to an error, even though an authorization exists for the 
transaction (e.g., if the authorization is for a different amount and/
or date). The newly re-purposed code is used only to identify the 
return of a debit transaction in which there is an error, but for which 
there is an authorization.\2\
---------------------------------------------------------------------------

    \2\ The 2021 Operating Rules & Guidelines implements a second 
phase of this rule. This second phase is discussed below.
---------------------------------------------------------------------------

    The Operating Rules & Guidelines will treat returned transactions 
using either code (R10 and R11) as unauthorized. However, an Originator 
will be permitted to correct the underlying error in an R11 return (if 
possible). Subject to certain other requirements, the Originator may be 
able to resubmit the underlying ACH transaction without obtaining a new 
authorization.\3\
---------------------------------------------------------------------------

    \3\ Some transaction errors, such as errors due to the failure 
to provide certain notices or the failure to use an acceptable 
``source document,'' cannot be corrected. In those cases, the 
Originator will be required to submit a new ACH entry.
---------------------------------------------------------------------------

    We are adopting this change. Doing so will allow the Fiscal Service 
to remain consistent with industry practice, allowing for consistent 
operation across the ACH network. Moreover, using the R11 return code 
will provide greater insight into the reasons for the return of certain 
transactions.
Supplemental Fraud Detection Standards for WEB Debits
    The Fiscal Service previously adopted Nacha's updated fraud 
detection standards for WEB debit transactions.\4\ The Fiscal Service 
adopted this change with a delayed effective date of March 22, 2022.\5\ 
The updated rule clarifies that Nacha requirements for a ``commercially 
reasonable fraudulent transaction detection system'' include the use of 
account validation services for WEB debit transactions. We are adopting 
the updated rule, which may help reduce ACH return transactions and the 
incidence of fraudulent transactions affecting the Federal Government.
---------------------------------------------------------------------------

    \4\ See 85 FR 15715 (Mar. 19, 2020).
    \5\ Id.
---------------------------------------------------------------------------

B. 2021 Operating Rules & Guidelines Changes

    The 2021 Operating Rules & Guidelines implemented several 
additional changes beyond those in the 2020 Operating Rules & 
Guidelines. These changes included, but are not limited to, clarifying 
certain portions of the enforcement provisions of the Operating Rules & 
Guidelines, implementing a new Same Day ACH

[[Page 44]]

processing window, implementing a second phase of Nacha's return code 
rule, establishing a time limit on certain warranty claims, and 
implementing Nacha's contact registry. As explained in more detail 
below, we are not adopting the amendments to the enforcement and 
contact registry provisions but are adopting the remaining changes.
Enforcement
    The 2021 Operating Rules & Guidelines defines an ``egregious 
violation'' within the context of rules enforcement.
    We are not adopting this amendment. Under 31 CFR 210.2(d), the 
enforcement provisions of the Operating Rules & Guidelines are 
inapplicable to Federal agencies.
Differentiating Unauthorized Return Reasons
    As discussed above, Nacha repurposed the R11 Return Reason code to 
further differentiate between certain returned debit ACH transactions. 
The 2021 Operating Rules & Guidelines implemented a second phase of 
this rule change, which will apply Nacha's existing Unauthorized Entry 
Fee to ACH debit entries that are returned with the newly repurposed 
code. These transactions are associated with an authorization of a 
debit transaction when there is an error or defect in the payment such 
that the entry does not conform to the terms of the authorization.
    The Fiscal Service is adopting this rule change. Adopting this 
change maintains consistency with other ACH Network participants and 
creates additional incentives to minimize the amount of unauthorized 
(or incorrectly authorized) ACH transactions.
Limitation on Warranty Claims
    Nacha's 2021 Operating Rules & Guidelines impose time limits on an 
RDFI's ability to make a claim against an ODFI's authorization 
warranty.
    The Operating Rules & Guidelines require an ODFI to warrant that an 
ACH entry has been properly authorized by the Receiver. Under the prior 
rules, there was no time limit on the ODFI's warranties. Instead, these 
limits were determined by state statutes of limitations, which may 
vary.
    The change sets forth different time periods, depending upon 
whether the transaction affects consumer and non-consumer accounts. 
This rule allows an RDFI to make a claim for one year from the 
settlement date of an entry to a non-consumer account. In the case of 
an entry to a consumer account, the RDFI may make a claim for two years 
from the entry's Settlement Date. In addition, the RDFI can make a 
claim for entries settling within 95 calendar days from the Settlement 
Date of the first unauthorized debit to a consumer account.
    The Fiscal Service is adopting this rule change.
Supplementing Data Security Requirements
    Nacha previously expanded its Data Security Requirements rule, 
which the Fiscal Service adopted,\6\ but in the 2021 Operating Rules & 
Guidelines Nacha updated the effective date and expanded the existing 
ACH Security Framework to explicitly require large, non-financial 
institution Originators, Third-Party Service Providers, and Third-Party 
Senders to protect account numbers used in the initiation of ACH 
entries by rendering them unreadable when stored electronically.
---------------------------------------------------------------------------

    \6\ See 85 FR 15715 (Mar. 19, 2020).
---------------------------------------------------------------------------

    The Fiscal Service is adopting the updated rule, which will expand 
existing security requirements and protect information associated with 
ACH transactions.
ACH Contact Registry
    In 2019, Nacha approved a rule creating an ACH contact registry. 
Under this rule, all ACH financial institutions are required to 
register contact information for their ACH operations and fraud and/or 
risk management areas. Financial institutions may voluntarily register 
contacts for additional personnel or departments at their discretion. 
The contact information is available to other registered ACH 
participating financial institutions, payments associations, ACH 
Operators, and Nacha to use in the event of ACH-related system outages, 
erroneous payments, duplicates, reversals, fraudulent payments and any 
other use within scope, such as identifying the proper contact for 
letters of indemnity. The contact information includes Routing and 
Transit Numbers (RTNs).
    Nacha is implementing the ACH Contact Registry rule in two phases. 
Phase 1 became effective on July 1, 2020, the date on which the 
registration portal was opened for ``Participating Depository Financial 
Institutions'' to begin to submit and query contact information. Under 
Phase 2, Nacha's enforcement authority for the Rule becomes effective.
    We are not adopting this amendment. Although participation in the 
registry can be expected to provide some benefits to the industry, all 
Federal Government RTNs are controlled by Treasury through the Fiscal 
Service. The Fiscal Service prohibits debit origination to all 
Treasury-controlled ACH RTNs. To mitigate the risk of inappropriate use 
of any Treasury RTNs, the Fiscal Service prohibits their publication. 
Moreover, under 31 CFR 210.2(d), the enforcement provisions of the 
Operating Rules & Guidelines are inapplicable to Federal agencies. The 
Fiscal Service appreciates Nacha's suggestion that the Federal 
Government consider alternative methods of making appropriate contact 
information available to financial institutions and may do so in the 
future.
Reversals
    The 2021 Operating Rules & Guidelines also clarify the proper 
circumstances under which an ACH entry may be reversed. The amendments 
to the Operating Rules & Guidelines specifically state that the 
initiation of reversing entries or files for any reason other than 
those explicitly permissible under the Operating Rules & Guidelines is 
prohibited and define non-exclusive examples of circumstances in which 
the origination of reversals is improper.
    The reversals rule also establishes additional formatting 
requirements for reversals; limits the ability to modify the contents 
of other fields in a reversing entry to allow changes only to the 
extent necessary to facilitate proper processing of the reversal; 
explicitly permits an RDFI to return an improper reversal; and expands 
the permissible reasons for a Reversing Entry to include an error in 
the effective entry date.
    The Fiscal Service is adopting this rule, which will clarify the 
circumstances under which entries can be reversed and assist in the 
efficient processing of ACH transactions involving the Federal 
Government.
Meaningful Modernization
    The 2021 Operating Rules & Guidelines also contain five amendments 
that Nacha characterizes as ``Meaningful Modernization.'' These five 
amendments are designed to improve and simplify the ACH user experience 
by facilitating the adoption of new technologies and channels for the 
authorization and initiation of ACH payments; reducing barriers to the 
use of the ACH Network; providing clarity and increasing consistency 
around certain ACH authorization processes; and reducing certain 
administrative burdens related to ACH authorizations.
    Specifically, the five rules:

[[Page 45]]

     Explicitly define the use of standing authorizations for 
consumer ACH debits;
     Define and allow for oral authorization of consumer ACH 
debits beyond telephone calls;
     Clarify and provide greater consistency of ACH 
authorization standards across payment initiation channels;
     Reduce the administrative burden of providing proof of 
authorization; and
     Better facilitate the use of electronic and oral Written 
Statements of Unauthorized Debit.
Standing Authorizations
    The current authorization framework for consumer ACH debits 
encompasses recurring and single payments. A single entry is a one-time 
payment and can be between parties that have no previous relationship. 
ACH Originators that have, or want to use, a different model for 
ongoing commerce do not have specific rules for payments that are a 
hybrid, falling somewhere in between recurring and single entries.
    This rule change defines a ``Standing Authorization'' as an advance 
authorization by a consumer of future debits at various intervals. The 
consumer would initiate the future debits by additional actions, which 
differs from the requirements for recurring ACH transactions. The rule 
allows the use of different Standard Entry Class codes. By allowing 
standing authorizations, Nacha will fill the gap between single and 
recurring payments and enable businesses and consumers to make more 
flexible payment arrangements for relationships that are ongoing in 
nature.
    The Fiscal Service is adopting this rule. The Fiscal Service 
believes that the Standing Authorization rule may increase options for 
initiating ACH transactions with the Federal Government. As a result, 
agencies may be able to adopt new payment processes that better fit 
their needs and the needs of their customers.
Oral Authorizations
    The Oral Authorizations rule defines and allows ``Oral 
Authorizations'' as a valid authorization method for consumer debits 
distinct from a telephone call.
    Under the rule, any Oral Authorization obtained via any channel 
needs to meet defined requirements An Oral Authorization obtained over 
the internet that is not a telephone call also needs to meet the risk 
and security requirements that currently apply to Internet-Initiated/
Mobile (WEB) ACH entries. The rule will allow for Standing 
Authorizations to be obtained orally. In addition, the rule will allow 
for subsequent entries initiated under a Standing Authorization to be 
initiated through voice commands, instructions, or affirmations.
    The Fiscal Service is adopting this amendment. The Fiscal Service 
believes that the Oral Authorization rule may increase options for 
initiating efficient ACH transactions with the Federal Government.
Other Authorization Issues
    The 2021 Operating Rules & Guidelines also include rule changes 
grouped as ``Other Authorization Issues,'' which cover other 
modifications and re-organizations of the general authorization rules 
for clarity, flexibility, and consistency.
    The rule re-organizes the general authorization rules to better 
incorporate Standing Authorizations, Oral Authorizations, and other 
changes. In addition, the amended rule explicitly states that 
authorization of any credit entry to a consumer account and any entry 
to a non-consumer account can be by any method allowed by law or 
regulation. Only consumer debit authorizations require a writing that 
is signed or similarly authenticated. The amended rule also requires 
all authorizations to meet the standards of ``readily identifiable'' 
and ``clear and readily understandable terms,'' which aim to reduce the 
incidence of erroneous transactions. Finally, the rule applies the 
``minimum data element'' standards that currently are only stated in 
the rules for Telephone-Initiated Entries to all consumer debit 
authorizations.
    The Fiscal Service is adopting these amendments, which will benefit 
the Federal Government and those who participate in ACH transactions 
with it.
Alternative to Proof of Authorization
    The 2021 Operating Rules & Guidelines provide an ODFI and 
Originator the option of accepting a return of a transaction in lieu of 
providing a copy of an authorization. Previously, an Originator was 
required to provide proof of authorization to its ODFI in such time 
that the ODFI can respond to an RDFI's request for proof of an 
authorization within ten banking days.
    This change reduces an administrative burden on ODFIs and their 
Originators by allowing them to choose their method of response. The 
rule is intended to help reduce the costs and time needed to resolve 
some exceptions in which proof of authorization is requested. However, 
if the RDFI still needs proof of authorization, the ODFI and its 
Originator must provide it within ten days of the RDFI's subsequent 
request.
    The Fiscal Service is adopting these amendments. The Fiscal Service 
agrees that these rule amendments may make certain ACH transaction 
processes more efficient. If the Federal Government determines that it 
is inefficient to provide the requested proof of authorization, the new 
rule will allow it to return the ACH instead of expending resources to 
locate and transmit the information to the RDFI and Receiver.
Written Statement of Unauthorized Debit via Electronic or Oral Methods
    The 2021 Operating Rules & Guidelines change the ``Written 
Statement of Unauthorized Debit'' rule, which makes an RDFI responsible 
for obtaining a consumer's Written Statement of Unauthorized Debit 
(WSUD) prior to returning a debit as unauthorized. This change allows 
for electronic or oral acceptance of WSUDs.
    The rule reduces an administrative burden on RDFIs and their 
customers. The changes emphasize that WSUDs may be obtained and signed 
electronically, which could include the same methods permissible for 
obtaining a consumer debit authorization.
    The Fiscal Service is adopting these amendments, which may increase 
the efficiency of ACH transactions involving the Federal Government by 
allowing electronic records and signatures to be used for WSUDs, 
expediting the processing of allegedly fraudulent electronic 
transactions involving the Federal Government and other parties.
Minor Rules Topics
    Nacha has passed other amendments that change several areas of the 
Operating Rules & Guidelines to address minor issues or correct errata. 
These changes have little-to-no impact on ACH participants and no 
material impact on the Federal Government's participation in the ACH 
network. Nacha's minor rule amendments became effective on various 
dates, according to the date of the Nacha errata correction or other 
message.
    The Fiscal Service is adopting these minor rule amendments.

III. Section-by-Section Analysis

    In order to incorporate in part 210 the Operating Rules & 
Guidelines changes that we are accepting, we are replacing references 
to the 2019 Rules & Guidelines with references to the 2021 Operating 
Rules & Guidelines.

[[Page 46]]

210.2(a)

    We are amending the reference to NACHA--The Electronic Payments 
Association (NACHA) to simply refer to Nacha.

Sec.  210.2(d)

    We are amending the definition of ``applicable ACH Rules'' at Sec.  
210.2(d) by replacing the reference to the ``2019 NACHA Operating Rules 
and Guidelines'' with a reference to the ``2021 Nacha Operating Rules & 
Guidelines'' and Supplement #1-2021. In particular, Supplement #1-2021 
will increase the Same Day ACH limit to $1 million, effective March 18, 
2022. In addition, we are expanding the list of Operating Rules & 
Guidelines that are not incorporated by reference to include the 
Operating Rules & Guidelines governing the Participating DFI registry.

Sec.  210.3(b)

    We are amending Sec.  210.3(b) by replacing the references to the 
``2019 NACHA Operating Rules & Guidelines'' with references to 
``Nacha's 2021 Operating Rules & Guidelines,'' including Supplement #1-
2021.

Sec.  210.6

    We are amending Sec.  210.6(g) by replacing the reference to the 
``2019 NACHA Operating Rules and Guidelines'' with a reference to the 
``2021 Nacha Operating Rules & Guidelines,'' as amended through March 
31, 2021.

IV. Incorporation by Reference

    The 2021 Operating Rules & Guidelines, including Supplement #1-
2021, are incorporated by reference into part 210 with the approval of 
the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR 
part 51. Office of Federal Register regulations require that agencies 
discuss in the preamble of a final rule ways that the materials the 
agency proposes to incorporate by reference are reasonably available to 
interested parties or how it worked to make those materials reasonably 
available to interested parties. In addition, the preamble of the final 
rule must summarize the material. 1 CFR 51.5(a). In accordance with the 
Office of the Federal Register's requirements, Supplementary 
Information section I summarizes the Operating Rules & Guidelines and 
section III summarizes the invidual provisions being adopted. Financial 
institutions utilizing the ACH Network are bound by the Operating Rules 
& Guidelines and have access to them in the course of their everyday 
business. The Operating Rules & Guidelines are available as a bound 
book or in online form from Nacha, 2550 Wasser Terrace, Suite 400, 
Herndon, Virginia 20171, tel. 703-561-1100, [email protected].

V. Procedural Analysis

Regulatory Planning and Review

    The final rule does not meet the criteria for a ``significant 
regulatory action'' as defined in Executive Order 12866. Therefore, the 
regulatory review procedures contained therein do not apply.

Regulatory Flexibility Act Analysis

    It is hereby certified that the final rule will not have a 
significant economic impact on a substantial number of small entities. 
The final rule imposes on the Federal Government a number of changes 
that Nacha has already adopted and imposed on private sector entities 
that utilize the ACH Network. The rule does not impose any additional 
burdens, costs or impacts on any private sector entities, including any 
small entities. Accordingly, a regulatory flexibility analysis under 
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) is not required.

Unfunded Mandates Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 
1532 (Unfunded Mandates Act), requires that the agency prepare a 
budgetary impact statement before promulgating any rule likely to 
result in a Federal mandate that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more in any one year. If a budgetary 
impact statement is required, section 205 of the Unfunded Mandates Act 
also requires the agency to identify and consider a reasonable number 
of regulatory alternatives before promulgating the rule. We have 
determined that the final rule will not result in expenditures by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more in any one year. Accordingly, 
we have not prepared a budgetary impact statement or specifically 
addressed any regulatory alternatives.

List of Subjects in 31 CFR Part 210

    Automated Clearing House, Electronic funds transfer, Financial 
institutions, Fraud, Incorporation by reference.

Words of Issuance

    For the reasons set out in the preamble, 31 CFR part 210 is amended 
as follows:

PART 210--FEDERAL GOVERNMENT PARTICIPATION IN THE AUTOMATED 
CLEARING HOUSE

0
1. The authority citation for part 210 continues to read as follows:

    Authority:  5 U.S.C. 5525; 12 U.S.C. 391; 31 U.S.C. 321, 3301, 
3302, 3321, 3332, 3335, and 3720.


0
2. In Sec.  210.2:
0
a. Revise paragraph (a) and paragraph (d) introductory text;
0
b. Redesignate paragraphs (d)(2) through (7) as paragraphs (d)(3) 
through (8); and
0
c. Add new paragraph (d)(2).
    The revisions and addition read as follows:


Sec.  210.2   Definitions.

* * * * *
    (a) ACH Rules means the 2021 Operating Rules & Guidelines, 
including Supplement #1-2021, (both incorporated by reference, see 
Sec.  210.3(b)) published by Nacha, a national association of regional 
member clearing house associations, ACH Operators, and participating 
financial institutions located in the United States.
* * * * *
    (d) Applicable ACH Rules means the ACH Rules, except:
* * * * *
    (2) Section 1.14 (governing the Participating DFI Contact 
registry);
* * * * *


0
3. In Sec.  210.3, revise paragraph (b) to read as follows:


Sec.  210.3  Governing law.

* * * * *
    (b) Incorporation by reference. Certain material is incorporated by 
reference into this part with the approval of the Director of the 
Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce 
any edition other than that specified in this section, the Bureau of 
the Fiscal Service must publish a document in the Federal Register and 
the material must be available to the public. All approved material is 
available for inspection at the Bureau of the Fiscal Service, 401 14th 
Street SW, Room 400A, Washington, DC 20227, ph. (202) 874-6680 and from 
the sources listed below. It is also available for inspection at the 
National Archives and Records Administration (NARA). For information on 
the availability of this material at NARA, email [email protected] 
or go to www.archives.gov/federal-register/cfr/ibr-locations.html.
    (1) Nacha, 2550 Wasser Terrace, Suite 400, Herndon, Virginia 20171, 
tel. 703-561-1100, [email protected].

[[Page 47]]

    (i) 2021 Nacha Operating Rules & Guidelines: The Guide to the Rules 
Governing the ACH Network, copyright 2021; into Sec.  210.2.
    (ii) Supplement #1-2021, Notice of Amendment to the 2021 Nacha 
Operating Rules, dated April 8, 2021; into Sec.  210.2.
    (2) [Reserved]
* * * * *


Sec.  210.6  [Amended]

0
4. In Sec.  210.6, in paragraph (g), remove the text ``2019 NACHA 
Operating Rules and Guidelines'' and add in its place the text 
``applicable ACH Rules''.

David A. Lebryk,
Fiscal Assistant Secretary.
[FR Doc. 2021-28048 Filed 12-30-21; 8:45 am]
BILLING CODE P