Records Preservation Program and Appendices-Record Retention Guidelines; Catastrophic Act Preparedness Guidelines, 31117-31119 [2024-08680]

Download as PDF Federal Register / Vol. 89, No. 80 / Wednesday, April 24, 2024 / Proposed Rules themes of the organizational/ professional comments were that the Petition sought to address a problem that does not exist, that promulgating new regulations would lead to confusion and burdens that would unnecessarily implicate the First Amendment, and that the Commission lacked the statutory authority to promulgate the proposed regulations. In deciding whether to initiate a rulemaking in response to a petition, the Commission generally considers five factors: (1) the Commission’s statutory authority; (2) policy considerations; (3) the desirability of proceeding on a caseby-case basis; (4) the necessity or desirability of statutory revision; and (5) available agency resources.9 After considering these factors and reviewing the comments received on the petition, the Commission has decided not to initiate a rulemaking at this time. First, and most significantly, the Commission lacks the statutory authority to promulgate a rule sought by the Petition. The Act empowers the Commission to ‘‘make, amend, or repeal such rules . . . as are necessary to carry out the provisions of [the] Act.’’ 10 And as the Petition acknowledges, the Act does not require corporations and other organizations (except for political committees) to make contributions from a separate account subject to the prohibitions and reporting requirements of the Act.11 Nor does the Act require such entities to disclose, as the Petition proposes, ‘‘the original source of all election-related contributions and expenditures, traceable through all intermediary entities to a natural person.’’ The Commission may not impose such requirements without a statutory mandate to do so. Second, the vast majority of the commenters, across the political spectrum, opposed the Petition. Given the public opposition to the Petition, and the fact that the Commission lacks statutory authority to implement the Petition’s proposal, there is no policy interest in pursuing a rulemaking, nor would it be a good use of Commission resources. Furthermore, declining to pursue the proposed rulemaking will not require khammond on DSKJM1Z7X2PROD with PROPOSALS 9 11 CFR 200.5. 10 52 U.S.C. 30107(a)(8). 11 Corporations and labor organizations are prohibited from making contributions to candidates and party committees. 52 U.S.C. 30118(a), (b)(2); 11 CFR 114.2(b). Corporations may, however, make contributions to nonconnected political committees that make only independent expenditures and to non-contribution accounts of hybrid political committees. See, e.g., Citizens United v. FEC, 558 U.S. 310 (2010); SpeechNow.org v. FEC, 599 F.3d 686 (D.C. Cir. 2010) (en banc); Advisory Opinion 2011–11 (Colbert). VerDate Sep<11>2014 15:49 Apr 23, 2024 Jkt 262001 the Commission to proceed on a caseby-case-basis because the information sought by the petition is not required to be disclosed under the Act and Commission regulations.12 Lastly, the ‘‘necessity or desirability of statutory revision’’ weighs against pursuing the proposed rulemaking because the changes sought by Petitioners would require a statutory revision given that the Commission lacks the statutory authority to promulgate the rules proposed by Petitioners.13 Accordingly, after considering the comments received regarding the Petition and in consideration of each of the factors discussed, the Commission declines to initiate a rulemaking in response to the Petition. Copies of the comments and the Petition for Rulemaking are available on the Commission’s website, https:// www.fec.gov/fosers/ (REG 2015–03 Contributions from Corporations and Other Organizations to Political Committees (2015)) and at the Commission’s Public Records Office, 1050 First Street NE, Washington, DC 20463, Monday through Friday between the hours of 9 a.m. and 5 p.m. Dated: April 18, 2024. On behalf of the Commission. Sean J. Cooksey, Chairman, Federal Election Commission. [FR Doc. 2024–08695 Filed 4–23–24; 8:45 am] BILLING CODE P NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Part 749 [NCUA–2024–0026] RIN 3133–AF61 Records Preservation Program and Appendices—Record Retention Guidelines; Catastrophic Act Preparedness Guidelines National Credit Union Administration (NCUA). ACTION: Advance notice of proposed rulemaking. AGENCY: The NCUA Board (Board) is issuing this advance notice of proposed rulemaking (ANPR) to solicit comments on ways the agency can improve and update its records preservation program regulation and accompanying guidelines in the NCUA regulations. The Board is SUMMARY: 12 52 U.S.C. 30104, 30116, 30118, 30119, 30121, 30122; see also 11 CFR part 104, 11 CFR 110.1, 110.4, 110.20, 114.2, 115.2. 13 11 CFR 200.5. PO 00000 Frm 00025 Fmt 4702 Sfmt 4702 31117 particularly interested in obtaining stakeholder input on the content of the regulation, which has not been updated in 15 years and may be outdated or at odds with current best practices. The Board is also interested in feedback on the structure of the part which may be confusing as it currently contains a combination of regulatory requirements and guidance. DATES: Comments must be received on or before June 24, 2024. ADDRESSES: You may submit written comments by any of the following methods identified by RIN (Please send comments by one method only): • Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments for Docket Number NCUA–2024–0026. • Mail: Address to Melane ConyersAusbrooks, Secretary of the Board, National Credit Union Administration, 1775 Duke Street, Alexandria, Virginia 22314–3428. • Hand Delivery/Courier: Same as mail address. Public Inspection: All public comments are available on the Federal eRulemaking Portal at https:// www.regulations.gov as submitted, except when impossible for technical reasons. Public comments will not be edited to remove any identifying or contact information. If you are unable to access public comments on the internet, you may contact the NCUA for alternative access by calling (703) 518– 6540 or emailing OGCMail@ncua.gov. FOR FURTHER INFORMATION CONTACT: Policy: Matt Huston, Policy Officer, Office of Examination and Insurance, at (571) 309–7684 or jhuston@ncua.gov; Legal: Gira Bose, Senior Staff Attorney, Office of General Counsel, at (703) 518– 6562 or gbose@ncua.gov. SUPPLEMENTARY INFORMATION: I. Background II. Current Standards and Request for Comment III. Legal Authority I. Background In 2023, the NCUA received feedback that part 749 and its appendices are burdensome and unclear. Based on this feedback and other factors described below, the NCUA has identified the need to review part 749 to see if any changes or improvements are necessary. The Board recognizes the NCUA’s regulations in this area, which were last updated many years ago, may be outdated or unclear for some credit unions, which ultimately may have adverse effects on their members. Thus, the Board is seeking advance comment on whether there is a need to update E:\FR\FM\24APP1.SGM 24APP1 31118 Federal Register / Vol. 89, No. 80 / Wednesday, April 24, 2024 / Proposed Rules khammond on DSKJM1Z7X2PROD with PROPOSALS part 749, and if so, what should be updated and how, to ensure that credit unions continue to properly preserve records vital to their business operations, the NCUA’s supervisory needs, and the needs of their members. II. Current Standards and Request for Comment Part 749 requires all federally insured credit unions (credit unions) to maintain a records preservation program to identify, store, and reconstruct vital records in the event that a credit union’s records are destroyed.1 Part 749 requires a vital records preservation program to be in writing and contain certain procedures for maintaining duplicate vital records at an offsite vital records center.2 The regulation defines the term ‘vital records’ as: (a) a list of share, deposit, and loan balances for each member’s account as of the close of the most recent business day that shows each balance individually identified by a name or number; lists multiple loans of one account separately; and contains information sufficient to enable the credit union to locate each member, such as address and telephone number; (b) a financial report, which lists all of the credit union’s asset and liability accounts and bank reconcilements, current as of the most recent month-end; (c) a list of the credit union’s accounts at financial institutions, insurance policies, and investments along with related contact information, current as of the most recent month-end; and (d) emergency contact information for employees, officials, regulatory offices, and vendors used to support vital records.3 At the same time, appendix A—which is included in part 749 as suggested guidelines for record retention—advises that the following additional sets of records should be retained permanently: 1. Official records of the credit union: (a) Charter, bylaws, and amendments; (b) Certificates or licenses to operate under programs of various government agencies, such as a certificate to act as issuing agent for the sale of U.S. savings bonds. 2. Key operational records: (a) Minutes of meetings of the membership, board of directors, credit committee, and supervisory committee; (b) One copy of each financial report, NCUA Form 5300 or 5310, or their equivalent, and the Credit Union Profile report, NCUA Form 4501, or its equivalent as submitted to the NCUA at the end of each quarter; (c) One copy of each 1 12 CFR 749.0. 2 12 CFR 749.2 and 749.3. 3 12 CFR 749.1. VerDate Sep<11>2014 15:49 Apr 23, 2024 Jkt 262001 supervisory committee comprehensive annual audit report and attachments; (d) Supervisory committee records of account verification; (e) Applications for membership and joint share account agreements; (f) Journal and cash record; (g) General ledger; (h) Copies of the periodic statements of members, or the individual share and loan ledger; (i) Bank reconcilements; and (j) Listing of records destroyed.4 Credit unions have expressed confusion regarding the interaction between part 749’s requirements and appendix A, and between part 749 and other parts of the NCUA’s regulations that have record retention requirements not referenced in part 749. Under part 749, certain supervisory committee documents are not vital records and are subject to periodic destruction; yet under § 715.8 the supervisory committee must retain the records of each verification of members’ passbooks and accounts until the completion of the next member account verification.5 The Board seeks comment on all aspects of part 749 and the appendices, including how they can be modernized, streamlined, and clarified, and other provisions in the NCUA’s regulations that contain record retention requirements. The Board also encourages credit unions and other stakeholders that have developed wellfunctioning records preservation programs to comment on what works for them and share their best practices in response to this document. In addition, the Board specifically requests feedback addressing the following areas: 6 A. Part 749 Definitions Questions: (1) Does the definition of vital records in 12 CFR 749.1 contain all, and only those, records you would consider to be vital for credit unions? (2) Are there additional types of documents not listed as a ‘‘vital record’’ that you think should be as they are critical for business operations and to properly serve members? (3) Are there other industry standards or methodologies outside of part 749 that the agency should consider for preserving vital records, for defining what vital records are, and for determining minimum retention periods? 4 12 CFR part 749, appendix A. CFR 715.8(c). 6 In responding to the questions below, the NCUA recommends respondents consider the totality of their vital records, including any such records a credit union has acquired, come into possession of, or retained through operational or organizational changes, such as a merger. 5 12 PO 00000 Frm 00026 Fmt 4702 Sfmt 4702 (4) The primary focus of the records retention guidance in appendix B relates specifically to catastrophic act preparedness. Are there any terms, definitions, or standards that the Board should consider updating in appendix B? (5) Are there any other changes to appendix B that you would recommend? B. Records Retention Practices Understanding current credit union retention practices would be helpful in determining whether part 749 is properly serving its purpose which is for a credit union to identify, store, and reconstruct vital records in the event that the credit union’s records are destroyed.7 Questions: (6) How long, and in what format, does your credit union store its vital records? (7) Does your credit union maintain and store any vital records in a physical format due to a regulatory requirement or supervisory expectation? (8) What impediments, including estimated costs, does your credit union encounter with storing vital records? (9) What records do you deem vital for business operations that a credit union should be required to keep permanently for the purpose of restoring vital member services? (10) Other than for records that must be kept permanently, are there specific timeframes you would recommend that other vital records be retained? (11) What are the pros and cons of storing vital records physically, electronically, or in other formats, such as cloud computing storage? (12) Does your credit union rely on third-party vendors to accurately maintain vital records, and if so, what are some of the challenges that these arrangements present? (13) How would you suggest the agency create a more effective framework for credit unions to preserve vital records? (14) What are some challenges for smaller credit unions, defined as credit unions with total assets of $100 million or less, in maintaining vital records, and what has worked? 8 (15) What additional support, training, or technical assistance could the NCUA provide, if any, to assist credit unions with both understanding and implementing records retention requirements? 7 12 CFR 749.0(a). NCUA Interpretive Ruling and Policy Statement 15–1, available at https://ncua.gov/files/ publications/regulations/IRPS2015-1.pdf. 8 See E:\FR\FM\24APP1.SGM 24APP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 89, No. 80 / Wednesday, April 24, 2024 / Proposed Rules C. Additional Guidance The issuance of guidance in this area has been a long-standing agency practice to assist credit unions with their record preservation obligations. As noted in an earlier rulemaking on part 749, ‘‘there is a need for guidance in the area of record retention based on the frequency of requests for assistance from credit unions.’’ 9 Additionally, clearer guidance in this area would also allow NCUA to better execute its supervisory duties. As part of meeting this need, the agency has taken steps over the years to clearly state the difference between regulations and guidance. In a prior rulemaking on part 749, the Board attempted to clarify this issue by stating, ‘‘The Board has weighed the fact that guidance is available from other sources and the potential for confusion regarding enforceability of a regulation versus guidance. The Board believes the benefit to credit unions in having the guidance in the appendix to the regulatory requirement will enhance access to the guidance and will facilitate compliance.’’ 10 In the part 749 rulemaking, the Board further noted that ‘‘including specific words like ‘recommended’ and ‘guidance’ means, as a legal matter, that the guidance is just that—guidance—and is not enforceable as a regulation. These words clarify and minimize, to the extent linguistically possible, the potential for misinterpretation.’’ 11 The NCUA recently codified this position in an interagency rulemaking clarifying the distinction between a rule and guidance whereby the former creates binding legal obligations, and the latter does not.12 Questions: (16) What provisions of appendix A or appendix B do not align with the requirements of part 749, or are otherwise outdated or unclear examples of the types of records that should be retained? For records you consider outdated, please explain why. (17) In terms of the content of any future guidance, what guidance would be helpful to better reflect the types of records that must be retained under part 749? (18) What guidance would be helpful for catastrophic act or other disaster preparedness? (19) Is there confusion among stakeholders regarding the enforceability of regulation versus guidance concerning part 749? If so, what should be revised? 9 66 FR 11239 (Feb. 23, 2001). FR 42271 (Aug. 2, 2007). 11 12 U.S.C. 1766(e). 12 12 U.S.C. 1766(e). 10 72 VerDate Sep<11>2014 15:49 Apr 23, 2024 Jkt 262001 D. Other NCUA Regulations Questions: (20) Are there other provisions in the NCUA’s regulations that contain record retention requirements that should be incorporated into part 749? III. Legal Authority The Board issues this ANPR pursuant to its authority under the Federal Credit Union Act (FCUA) to prescribe rules and regulations as it deems appropriate for administering the FCUA, including its recordkeeping requirements for Federal credit unions.13 Maintaining vital records is central to a credit union’s ability to properly service its members and to the NCUA’s ability to fulfill its supervisory and enforcement duties. Section 209 of the FCUA is a plenary grant of regulatory authority to the Board to examine and require information and reports from credit unions as well as issue rules and regulations necessary or appropriate to carry out its roles as regulator and share insurer.14 Section 206 of the FCUA requires the agency to impose corrective measures whenever, in the opinion of the Board, any credit union is engaged in or has engaged in unsafe or unsound practices in conducting its business.15 Accordingly, the FCUA grants the Board broad rulemaking authority to ensure that credit unions, their member owners, and the National Credit Union Share Insurance Fund remain safe, sound and protected. By the National Credit Union Administration Board. Melane Conyers-Ausbrooks, Secretary of the Board. [FR Doc. 2024–08680 Filed 4–23–24; 8:45 am] BILLING CODE 7535–01–P DEPARTMENT OF STATE 22 CFR Parts 122 and 129 [Public Notice: 12236] RIN 1400–AF78 International Traffic in Arms Regulations: Registration Fees Department of State. Proposed rule. AGENCY: ACTION: The Department of State proposes to amend the International SUMMARY: 13 12 U.S.C. 1766(e). U.S.C. 1789(a)(8) and (11). 15 12 U.S.C. 1786(b)(1). There are several references to ‘‘safety and soundness’’ in the FCUA. See 12 U.S.C. 1757(5)(A)(vi)(I), 1759(d & f), 1781(c)(2), 1782(a)(6)(B), 1786(b), 1786(e), 1786(f), 1786(g), 1786(k)(2), 1786(r), 1786(s), and 1790d(h). 14 12 PO 00000 Frm 00027 Fmt 4702 Sfmt 4702 31119 Traffic in Arms Regulations (ITAR) by increasing and specifying the fees required for registration with the Directorate of Defense Trade Controls (DDTC). DATES: Send comments on or before June 10, 2024. ADDRESSES: Interested parties may submit comments by one of the following methods: • Email: DDTCPublicComments@ state.gov. Include the subject line: ‘‘Registration Fees—RIN 1400–AF78’’ • Federal eRulemaking Portal: https:// www.regulations.gov. Identify by the Department docket number DOS–2023– 0034 or RIN 1400–AF78. Follow the instructions for sending comments. Comments received after that date may be considered if feasible, but consideration cannot be assured. Those submitting comments should not include any personally identifying information they do not desire to be made public or information for which a claim of confidentiality is asserted, because any such claim will be deemed waived and comments and/or transmittal emails may be made publicly available. Parties who wish to comment anonymously may do so by submitting their comments via www.regulations.gov, leaving the fields that would identify the commenter blank and including no identifying information in the comment itself. Per 5 U.S.C. 553(b)(4), a concise summary of this proposed rule may be found at https://www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Allison Smith, PM/DDTC Director of Management, Bureau of PoliticalMilitary Affairs, U.S. Department of State, telephone 202–647–1282; email: DDTCCustomerService@state.gov. Subject: Registration Fee Change. SUPPLEMENTARY INFORMATION: Overview For the first time in fifteen years, the State Department proposes to revise and increase the registration fees (also referred to as ‘‘fees’’) charged to those required to register with DDTC. In accordance with section 38(b) of the Arms Export Control Act (AECA) (22 U.S.C. 2778(b)), every person who engages in the business of manufacturing, exporting, temporarily importing, or brokering any defense articles or defense services is required to register with DDTC, the agency charged with administering the relevant sections of the AECA. Section 38(b) of the AECA also requires that every person required to register pay a registration fee. As the ITAR implements section 38 of the AECA, and as its parts 122 and 129 (22 E:\FR\FM\24APP1.SGM 24APP1

Agencies

[Federal Register Volume 89, Number 80 (Wednesday, April 24, 2024)]
[Proposed Rules]
[Pages 31117-31119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08680]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 749

[NCUA-2024-0026]
RIN 3133-AF61


Records Preservation Program and Appendices--Record Retention 
Guidelines; Catastrophic Act Preparedness Guidelines

AGENCY: National Credit Union Administration (NCUA).

ACTION: Advance notice of proposed rulemaking.

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

SUMMARY: The NCUA Board (Board) is issuing this advance notice of 
proposed rulemaking (ANPR) to solicit comments on ways the agency can 
improve and update its records preservation program regulation and 
accompanying guidelines in the NCUA regulations. The Board is 
particularly interested in obtaining stakeholder input on the content 
of the regulation, which has not been updated in 15 years and may be 
outdated or at odds with current best practices. The Board is also 
interested in feedback on the structure of the part which may be 
confusing as it currently contains a combination of regulatory 
requirements and guidance.

DATES: Comments must be received on or before June 24, 2024.

ADDRESSES: You may submit written comments by any of the following 
methods identified by RIN (Please send comments by one method only):
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments for Docket Number NCUA-
2024-0026.
     Mail: Address to Melane Conyers-Ausbrooks, Secretary of 
the Board, National Credit Union Administration, 1775 Duke Street, 
Alexandria, Virginia 22314-3428.
     Hand Delivery/Courier: Same as mail address.
    Public Inspection: All public comments are available on the Federal 
eRulemaking Portal at https://www.regulations.gov as submitted, except 
when impossible for technical reasons. Public comments will not be 
edited to remove any identifying or contact information. If you are 
unable to access public comments on the internet, you may contact the 
NCUA for alternative access by calling (703) 518-6540 or emailing 
[email protected].

FOR FURTHER INFORMATION CONTACT: Policy: Matt Huston, Policy Officer, 
Office of Examination and Insurance, at (571) 309-7684 or 
[email protected]; Legal: Gira Bose, Senior Staff Attorney, Office of 
General Counsel, at (703) 518-6562 or [email protected].

SUPPLEMENTARY INFORMATION:
I. Background
II. Current Standards and Request for Comment
III. Legal Authority

I. Background

    In 2023, the NCUA received feedback that part 749 and its 
appendices are burdensome and unclear. Based on this feedback and other 
factors described below, the NCUA has identified the need to review 
part 749 to see if any changes or improvements are necessary. The Board 
recognizes the NCUA's regulations in this area, which were last updated 
many years ago, may be outdated or unclear for some credit unions, 
which ultimately may have adverse effects on their members. Thus, the 
Board is seeking advance comment on whether there is a need to update

[[Page 31118]]

part 749, and if so, what should be updated and how, to ensure that 
credit unions continue to properly preserve records vital to their 
business operations, the NCUA's supervisory needs, and the needs of 
their members.

II. Current Standards and Request for Comment

    Part 749 requires all federally insured credit unions (credit 
unions) to maintain a records preservation program to identify, store, 
and reconstruct vital records in the event that a credit union's 
records are destroyed.\1\
---------------------------------------------------------------------------

    \1\ 12 CFR 749.0.
---------------------------------------------------------------------------

    Part 749 requires a vital records preservation program to be in 
writing and contain certain procedures for maintaining duplicate vital 
records at an offsite vital records center.\2\ The regulation defines 
the term `vital records' as: (a) a list of share, deposit, and loan 
balances for each member's account as of the close of the most recent 
business day that shows each balance individually identified by a name 
or number; lists multiple loans of one account separately; and contains 
information sufficient to enable the credit union to locate each 
member, such as address and telephone number; (b) a financial report, 
which lists all of the credit union's asset and liability accounts and 
bank reconcilements, current as of the most recent month-end; (c) a 
list of the credit union's accounts at financial institutions, 
insurance policies, and investments along with related contact 
information, current as of the most recent month-end; and (d) emergency 
contact information for employees, officials, regulatory offices, and 
vendors used to support vital records.\3\
---------------------------------------------------------------------------

    \2\ 12 CFR 749.2 and 749.3.
    \3\ 12 CFR 749.1.
---------------------------------------------------------------------------

    At the same time, appendix A--which is included in part 749 as 
suggested guidelines for record retention--advises that the following 
additional sets of records should be retained permanently: 1. Official 
records of the credit union: (a) Charter, bylaws, and amendments; (b) 
Certificates or licenses to operate under programs of various 
government agencies, such as a certificate to act as issuing agent for 
the sale of U.S. savings bonds. 2. Key operational records: (a) Minutes 
of meetings of the membership, board of directors, credit committee, 
and supervisory committee; (b) One copy of each financial report, NCUA 
Form 5300 or 5310, or their equivalent, and the Credit Union Profile 
report, NCUA Form 4501, or its equivalent as submitted to the NCUA at 
the end of each quarter; (c) One copy of each supervisory committee 
comprehensive annual audit report and attachments; (d) Supervisory 
committee records of account verification; (e) Applications for 
membership and joint share account agreements; (f) Journal and cash 
record; (g) General ledger; (h) Copies of the periodic statements of 
members, or the individual share and loan ledger; (i) Bank 
reconcilements; and (j) Listing of records destroyed.\4\
---------------------------------------------------------------------------

    \4\ 12 CFR part 749, appendix A.
---------------------------------------------------------------------------

    Credit unions have expressed confusion regarding the interaction 
between part 749's requirements and appendix A, and between part 749 
and other parts of the NCUA's regulations that have record retention 
requirements not referenced in part 749. Under part 749, certain 
supervisory committee documents are not vital records and are subject 
to periodic destruction; yet under Sec.  715.8 the supervisory 
committee must retain the records of each verification of members' 
passbooks and accounts until the completion of the next member account 
verification.\5\
---------------------------------------------------------------------------

    \5\ 12 CFR 715.8(c).
---------------------------------------------------------------------------

    The Board seeks comment on all aspects of part 749 and the 
appendices, including how they can be modernized, streamlined, and 
clarified, and other provisions in the NCUA's regulations that contain 
record retention requirements. The Board also encourages credit unions 
and other stakeholders that have developed well-functioning records 
preservation programs to comment on what works for them and share their 
best practices in response to this document. In addition, the Board 
specifically requests feedback addressing the following areas: \6\
---------------------------------------------------------------------------

    \6\ In responding to the questions below, the NCUA recommends 
respondents consider the totality of their vital records, including 
any such records a credit union has acquired, come into possession 
of, or retained through operational or organizational changes, such 
as a merger.
---------------------------------------------------------------------------

A. Part 749 Definitions

    Questions:
    (1) Does the definition of vital records in 12 CFR 749.1 contain 
all, and only those, records you would consider to be vital for credit 
unions?
    (2) Are there additional types of documents not listed as a ``vital 
record'' that you think should be as they are critical for business 
operations and to properly serve members?
    (3) Are there other industry standards or methodologies outside of 
part 749 that the agency should consider for preserving vital records, 
for defining what vital records are, and for determining minimum 
retention periods?
    (4) The primary focus of the records retention guidance in appendix 
B relates specifically to catastrophic act preparedness. Are there any 
terms, definitions, or standards that the Board should consider 
updating in appendix B?
    (5) Are there any other changes to appendix B that you would 
recommend?

B. Records Retention Practices

    Understanding current credit union retention practices would be 
helpful in determining whether part 749 is properly serving its purpose 
which is for a credit union to identify, store, and reconstruct vital 
records in the event that the credit union's records are destroyed.\7\
---------------------------------------------------------------------------

    \7\ 12 CFR 749.0(a).
---------------------------------------------------------------------------

    Questions:
    (6) How long, and in what format, does your credit union store its 
vital records?
    (7) Does your credit union maintain and store any vital records in 
a physical format due to a regulatory requirement or supervisory 
expectation?
    (8) What impediments, including estimated costs, does your credit 
union encounter with storing vital records?
    (9) What records do you deem vital for business operations that a 
credit union should be required to keep permanently for the purpose of 
restoring vital member services?
    (10) Other than for records that must be kept permanently, are 
there specific timeframes you would recommend that other vital records 
be retained?
    (11) What are the pros and cons of storing vital records 
physically, electronically, or in other formats, such as cloud 
computing storage?
    (12) Does your credit union rely on third-party vendors to 
accurately maintain vital records, and if so, what are some of the 
challenges that these arrangements present?
    (13) How would you suggest the agency create a more effective 
framework for credit unions to preserve vital records?
    (14) What are some challenges for smaller credit unions, defined as 
credit unions with total assets of $100 million or less, in maintaining 
vital records, and what has worked? \8\
---------------------------------------------------------------------------

    \8\ See NCUA Interpretive Ruling and Policy Statement 15-1, 
available at https://ncua.gov/files/publications/regulations/IRPS2015-1.pdf.
---------------------------------------------------------------------------

    (15) What additional support, training, or technical assistance 
could the NCUA provide, if any, to assist credit unions with both 
understanding and implementing records retention requirements?

[[Page 31119]]

C. Additional Guidance

    The issuance of guidance in this area has been a long-standing 
agency practice to assist credit unions with their record preservation 
obligations. As noted in an earlier rulemaking on part 749, ``there is 
a need for guidance in the area of record retention based on the 
frequency of requests for assistance from credit unions.'' \9\ 
Additionally, clearer guidance in this area would also allow NCUA to 
better execute its supervisory duties. As part of meeting this need, 
the agency has taken steps over the years to clearly state the 
difference between regulations and guidance. In a prior rulemaking on 
part 749, the Board attempted to clarify this issue by stating, ``The 
Board has weighed the fact that guidance is available from other 
sources and the potential for confusion regarding enforceability of a 
regulation versus guidance. The Board believes the benefit to credit 
unions in having the guidance in the appendix to the regulatory 
requirement will enhance access to the guidance and will facilitate 
compliance.'' \10\ In the part 749 rulemaking, the Board further noted 
that ``including specific words like `recommended' and `guidance' 
means, as a legal matter, that the guidance is just that--guidance--and 
is not enforceable as a regulation. These words clarify and minimize, 
to the extent linguistically possible, the potential for 
misinterpretation.'' \11\ The NCUA recently codified this position in 
an interagency rulemaking clarifying the distinction between a rule and 
guidance whereby the former creates binding legal obligations, and the 
latter does not.\12\
---------------------------------------------------------------------------

    \9\ 66 FR 11239 (Feb. 23, 2001).
    \10\ 72 FR 42271 (Aug. 2, 2007).
    \11\ 12 U.S.C. 1766(e).
    \12\ 12 U.S.C. 1766(e).
---------------------------------------------------------------------------

    Questions:
    (16) What provisions of appendix A or appendix B do not align with 
the requirements of part 749, or are otherwise outdated or unclear 
examples of the types of records that should be retained? For records 
you consider outdated, please explain why.
    (17) In terms of the content of any future guidance, what guidance 
would be helpful to better reflect the types of records that must be 
retained under part 749?
    (18) What guidance would be helpful for catastrophic act or other 
disaster preparedness?
    (19) Is there confusion among stakeholders regarding the 
enforceability of regulation versus guidance concerning part 749? If 
so, what should be revised?

D. Other NCUA Regulations

    Questions:
    (20) Are there other provisions in the NCUA's regulations that 
contain record retention requirements that should be incorporated into 
part 749?

III. Legal Authority

    The Board issues this ANPR pursuant to its authority under the 
Federal Credit Union Act (FCUA) to prescribe rules and regulations as 
it deems appropriate for administering the FCUA, including its 
recordkeeping requirements for Federal credit unions.\13\ Maintaining 
vital records is central to a credit union's ability to properly 
service its members and to the NCUA's ability to fulfill its 
supervisory and enforcement duties. Section 209 of the FCUA is a 
plenary grant of regulatory authority to the Board to examine and 
require information and reports from credit unions as well as issue 
rules and regulations necessary or appropriate to carry out its roles 
as regulator and share insurer.\14\ Section 206 of the FCUA requires 
the agency to impose corrective measures whenever, in the opinion of 
the Board, any credit union is engaged in or has engaged in unsafe or 
unsound practices in conducting its business.\15\ Accordingly, the FCUA 
grants the Board broad rulemaking authority to ensure that credit 
unions, their member owners, and the National Credit Union Share 
Insurance Fund remain safe, sound and protected.
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    \13\ 12 U.S.C. 1766(e).
    \14\ 12 U.S.C. 1789(a)(8) and (11).
    \15\ 12 U.S.C. 1786(b)(1). There are several references to 
``safety and soundness'' in the FCUA. See 12 U.S.C. 
1757(5)(A)(vi)(I), 1759(d & f), 1781(c)(2), 1782(a)(6)(B), 1786(b), 
1786(e), 1786(f), 1786(g), 1786(k)(2), 1786(r), 1786(s), and 
1790d(h).

    By the National Credit Union Administration Board.
Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2024-08680 Filed 4-23-24; 8:45 am]
BILLING CODE 7535-01-P
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