80 FR 80257 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards: Conforming Amendments; Correction

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 80, Issue 247 (December 24, 2015)

Page Range		80257-80258
FR Document		2015-32470

The Department of Housing and Urban Development is correcting a final rule that was published in the Federal Register on December 7, 2015 (80 FR 75931). The December 7, 2015, final rule contains an amendatory instruction that is inconsistent with amendments made by a final rule that was published on December 4, 2015 (80 FR 75791).

Federal Register, Volume 80 Issue 247 (Thursday, December 24, 2015)

[Federal Register Volume 80, Number 247 (Thursday, December 24, 2015)]
[Rules and Regulations]
[Pages 80257-80258]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32470]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 578

[Docket No. FR-5783-C-03]
RIN 2501-AD66


Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards: Conforming Amendments; Correction

AGENCY: Office of the Secretary, HUD.

[[Page 80258]]


ACTION: Final rule; correction.

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SUMMARY: The Department of Housing and Urban Development is correcting 
a final rule that was published in the Federal Register on December 7, 
2015 (80 FR 75931). The December 7, 2015, final rule contains an 
amendatory instruction that is inconsistent with amendments made by a 
final rule that was published on December 4, 2015 (80 FR 75791).

DATES: Effective January 6, 2016.

FOR FURTHER INFORMATION CONTACT: Scott Moore, Financial Operations 
Analyst, Office of the Chief Financial Officer, Financial Policy & 
Procedures Division, 451 7th Street SW., Room 3210, Washington, DC 
20410, telephone number 202-402-2277, or Loyd LaMois, Supervisory 
Program Analyst, Office of Strategic Planning and Management, 451 7th 
Street SW., Room 3156, Washington, DC 20410, telephone number 202-402-
3964. These are not a toll-free numbers. Persons with hearing or speech 
impairments may access these numbers through TTY by calling the Federal 
Relay Service, toll-free, at 800-877-8339.

SUPPLEMENTARY INFORMATION: In FR Doc 2015-29692 appearing at page 75931 
in the Federal Register of Monday, December 7, 2015, the following 
correction is made:


Sec.  578.103  [Corrected]

    On page 75940, in the second column, amendatory instruction 98.a., 
is corrected to read as follows: ``a. In paragraph (a)(17)(iii), remove 
`24 CFR 85.36 and 24 CFR part 84' and add in its place `2 CFR part 200, 
subpart D'; and''.

    Dated: December 21, 2015.
Aaron Santa Anna,
Assistant General Counsel for Regulations.
[FR Doc. 2015-32470 Filed 12-23-15; 8:45 am]
BILLING CODE 4210-67-P

Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Rules and Regulations 80257

Today’s final rule clarifies that members of not support that proposal because it did not in this final rule will be paradoxically tossed
exchanges and swap execution facilities not go far enough in addressing concerns about aside for many small market participants if
registered with the Commission—typically, the feasibility and cost of compliance.5 It Regulation Automated Trading (‘‘Regulation
end-users—do not have to keep pre-trade continued to contain provisions that were AT’’) is finalized as proposed.8 Under
communications or text messages. Further, it overly burdensome in practice for certain Regulation AT, many unregistered market
simplifies the requirements for keeping covered entities. For example, the proposal participants would be forced to register for
records of final transactions. The amended kept 2012 rule revisions that required the the first time with the CFTC as ‘‘floor
rule also states that commodity trading keeping of all oral and written records that traders’’ due to the broad definition of
advisors do not have to record oral lead to the execution of a transaction in a ‘‘algorithmic trading.’’ 9 As new floor traders,
communications regarding their transactions. commodity interest and related cash or these market participants would then be
I believe this rule is an important change forward transaction, in a form and manner subject to heighted recordkeeping
that will reduce recordkeeping burdens on ‘‘identifiable and searchable by requirements under Rule 1.35, such as
end-users, and I applaud my fellow transaction.’’ 6 This ‘‘searchable’’ requirement keeping all ‘‘written communications
commissioners for their unanimous support. also conflicted with the requirements of provided or received concerning quotes, bids,
Commission Rule 1.31, which applies to all offers, instructions, trading, and prices that
Appendix 3—Statement of books and records required to be kept by the lead to the execution of a transaction.’’ 10 As
Commissioner J. Christopher Giancarlo Commodity Exchange Act and Commission I said in my statement accompanying the
I am pleased to support this final rule that regulations. Notice of Proposed Rulemaking for
revises Rule 1.35. In the end, after numerous Appropriately, the final revisions to Rule Regulation AT, I encourage market
iterations, several comment periods, 1.35 address many of the issues raised in my participants to carefully review and consider
significant legislative interest from Congress, year-old dissent. End-user exchange members the compliance and cost consequences of that
and months of negotiating, the Commodity that are not registered or required to be potential new regulatory regime and compare
Futures Trading Commission (‘‘CFTC’’ or registered with the Commission now must it to today’s common-sense revisions to Rule
‘‘Commission’’) thankfully listened to the only keep transaction records, which is a 1.35.
concerns of market participants. I am logical and prudent course of regulatory As I have mentioned in the past, I have
appreciative of the CFTC staff’s diligent work policy. Text messages are also excluded from been fortunate during my time as a
over the past few months to make key the recordkeeping requirement for end-users, Commissioner to visit with agricultural and
revisions to this rule. Fixing this regulation but communications through internet-based energy producers and intermediaries in
was one of the first issues that I raised with messaging services must be kept on file. I Illinois, Indiana, Iowa, Minnesota, Texas,
my fellow Commissioners upon my arrival at anticipate that this distinction will generate Louisiana and Kentucky. The common
the CFTC. I believe we have now produced interesting public commentary.7 refrain I hear again and again is that
a more workable rule that will not impose Aside from the technical points of the final Washington does not listen to everyday
needless regulatory costs on America’s rule, it is appropriate to comment on the Americans. It imposes rules and regulations
agricultural producers, grain elevator skyrocketing compliance costs associated without regard to their obvious impact on
operators or energy producers, to name a few. with trading in American commodity ordinary people. Well, I believe this rule
As background, the Commission revised markets. There is an undeniable need for the benefits from listening to those concerns and
long-standing Rule 1.35 in 2012 despite the CFTC to police these markets and root out is a step in the right direction. I am hopeful
fact that the Dodd-Frank Act 1 contained no fraud and abuse. Confidence and trust in our that it is an indicator of future action by the
mandate to change the CFTC’s recordkeeping markets is essential so that farmers, CFTC that more readily takes to heart these
rules.2 The revised rule proved to be manufacturers and other end-users can safely common concerns in all of our regulatory
unworkable. Its publication was followed by hedge their risks and costs of production. actions.
requests for no-action relief and a public Yet, agricultural intermediaries, particularly
[FR Doc. 2015–32416 Filed 12–23–15; 8:45 am]
roundtable at which entities impacted by the small futures commission merchants, are
being squeezed by the prolonged BILLING CODE 6351–01–P
rule voiced their inability to tie all
communications leading to the execution of environment of low interest rates and
a transaction to a particular transaction or increased regulatory burdens. Regulators
transactions. End-user exchange members must always balance the public’s interest in DEPARTMENT OF HOUSING AND
pointed out that business that was once collecting commercial information for use in URBAN DEVELOPMENT
conducted by telephone had moved to text investigations and enforcement, against costs
messaging, so the carve out in the rule for and burdens placed on American commerce 24 CFR Part 578
oral communications had little utility. They and industry and the jobs they generate. In
pointed out that it was simply not this protracted period of weak economic [Docket No. FR–5783–C–03]
technologically feasible to keep pre-trade text growth with an enormous number of RIN 2501–AD66
messages in a form and manner ‘‘identifiable Americans out of the workforce, we must
and searchable by transaction.’’ Further, scrupulously avoid needless red tape and Uniform Administrative Requirements,
bipartisan Congressional action on the rule’s compliance costs that are invariably passed
along through higher costs for everyday items
Cost Principles, and Audit
unworkable nature made it clear that the
like a loaf of bread or a gallon of gasoline, Requirements for Federal Awards:
Commission should re-open the rule to
lessen the burden on market participants not milk or winter heating oil. Conforming Amendments; Correction
registered with the CFTC.3 I believe the final Rule 1.35 generally gets
AGENCY: Office of the Secretary, HUD.
In November 2014, the CFTC did propose the balance right. Yet, I must give a plain and
changes to Rule 1.35.4 Unfortunately, I could simple warning: The elimination of 8 See CFTC Notice of Proposed Rulemaking
unnecessary recordkeeping burdens provided
(3038–AD52), Regulation Automated Trading (Dec.
1 Dodd-Frank Wall Street Reform and Consumer
14, 2015), available at http://www.cftc.gov/idc/
Protection Act, Public Law 111–203, 124 Stat. 1376 groups/public/@lrfederalregister/documents/file/ groups/public/@newsroom/documents/file/
(2010). 2014-26983a.pdf. federalregister112415.pdf.
2 See Adaptation of Regulations to Incorporate 5 See id. at 68147–148 (Dissenting Statement of 9 See definition of ‘‘Algorithmic Trading’’ in
Swaps-Records of Transactions, 77 FR 75523 (Dec. Commissioner J. Christopher Giancarlo). proposed Commission regulation 1.3(zzzz), which
21, 2012), available at https://www.gpo.gov/fdsys/ 6 See supra note 4. is very broad and would appear to capture market
pkg/FR-2012-12-21/pdf/2012-30691.pdf.
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7 As finalized, the rule excludes text messages participants using off-the-shelf type automated
3 See H.R. 4413, the Customer Protection and systems or simple excel spreadsheets to automate
based on SMS and MMS technology, but includes
End-User Relief Act, Sec. 353 (113th Congress) and internet-based messaging services such as iPhone trading.
H.R. 2289, the Commodity End-User Relief Act, Sec. messages because they are easier to store and 10 Emphasis added; see Commission Rule
308 (114th Congress). retrieve on computers. While this outcome is 1.35(a)(1)(iii) (defining ‘‘written pre-trade
4 See Records of Commodity Interest and Related puzzling and not technologically neutral, the best communications’’) and Rule 1.35(a)(2)(ii) (requiring
Cash or Forward Transactions, 79 FR 68140 (Nov. manner to ensure compliance with CFTC all ‘‘floor traders’’ to keep all ‘‘written pre-trade
14, 2014), available at http://www.cftc.gov/idc/ regulations is education on our rules. communications’’).

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80258 Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Rules and Regulations

ACTION: Final rule; correction. Service, is issuing a final rule amending describe when payment will be made to
regulations governing United States a person or entity that is not the
SUMMARY: The Department of Housing savings bonds to address certain state registered owner.
and Urban Development is correcting a escheat claims. To redeem a paper savings bond, the
final rule that was published in the registered owner or a successor
DATES: Effective December 24, 2015.
Federal Register on December 7, 2015 specified in the regulations must
ADDRESSES: You can download this final
(80 FR 75931). The December 7, 2015, surrender the physical bond. Although
final rule contains an amendatory rule at the following Internet address:
http://www.regulations.gov, http:// there are exceptions to the requirement
instruction that is inconsistent with that the bond be surrendered, the
www.gpo.gov, or http://
amendments made by a final rule that exceptions are carefully drawn to
www.fiscal.treasury.gov.
was published on December 4, 2015 (80 protect the owner’s rights and to protect
FR 75791). FOR FURTHER INFORMATION CONTACT:
Treasury against competing claims. For
DATES: Effective January 6, 2016. Theodore C. Simms II, Senior Counsel,
example, if a claimant cannot surrender
FOR FURTHER INFORMATION CONTACT:
202–504–3710 or Theodore.Simms@
the bond, the claimant must provide
Scott Moore, Financial Operations fiscal.treasury.gov.
satisfactory evidence of the loss, theft,
Analyst, Office of the Chief Financial SUPPLEMENTARY INFORMATION: or destruction of the bond, or a
Officer, Financial Policy & Procedures I. Background satisfactory explanation of the
Division, 451 7th Street SW., Room mutilation or defacement, as well as
3210, Washington, DC 20410, telephone The United States Department of the sufficient information to identify the
number 202–402–2277, or Loyd LaMois, Treasury has issued savings bonds since bond by serial number. See, e.g., 31 CFR
Supervisory Program Analyst, Office of 1935 on the credit of the United States parts 315 and 353, subpart F. An
Strategic Planning and Management, to raise funds for federal programs and owner’s right to payment continues
451 7th Street SW., Room 3156, operations. Article 8, Section 8, Clause indefinitely. Pursuant to statutory
Washington, DC 20410, telephone 2 of the Constitution authorizes the authority, Treasury regulations allow
number 202–402–3964. These are not a federal government to ‘‘borrow money owners to keep their bonds indefinitely
toll-free numbers. Persons with hearing on the credit of the United States.’’ and to surrender them for payment even
or speech impairments may access these Under this grant of power, ‘‘the
years after the bonds mature. See 31
numbers through TTY by calling the Congress authorized the Secretary of the
U.S.C. 3105(b) and 31 CFR parts 315
Federal Relay Service, toll-free, at 800– Treasury, with the approval of the
and 353, subpart H.
877–8339. President, to issue savings bonds in
such form and under such conditions as II. State Escheat Claims for the Custody
SUPPLEMENTARY INFORMATION: In FR Doc
he may from time to time of Savings Bonds
2015–29692 appearing at page 75931 in prescribe. . . .’’ Free v. Bland, 369 U.S.
the Federal Register of Monday, Many state escheat laws allow states
663, 667 (1962) (citing the predecessor to take custody of unclaimed or
December 7, 2015, the following to 31 U.S.C. 3105). Congress provided
correction is made: abandoned property. Treasury’s savings
that the proceeds of savings bonds may bond regulations do not explicitly
§ 578.103 [Corrected] be used by the federal government for address the topic of abandoned savings
On page 75940, in the second column, any expenditures authorized by law. See bonds, or the effect of custody escheat
amendatory instruction 98.a., is 31 U.S.C. 3105(a). statutes on the rights of savings bond
corrected to read as follows: ‘‘a. In Congress expressly authorized the
owners. Treasury has addressed the
paragraph (a)(17)(iii), remove ‘24 CFR Secretary of the Treasury to establish
topic in guidance and in litigation.
85.36 and 24 CFR part 84’ and add in the terms and conditions that govern the
In 1952, Treasury issued a bulletin to
its place ‘2 CFR part 200, subpart D’; savings bond program. 31 U.S.C.
the Federal Reserve Banks providing
and’’. 3105(c). Treasury’s savings bond
guidance on custody escheat claims.
regulations implement this authority,
Dated: December 21, 2015. The bulletin addressed a state claim to
setting forth a contract between the
Aaron Santa Anna, the custody of four savings bonds in the
United States and savings bond
Assistant General Counsel for Regulations.
state’s possession, which had belonged
purchasers. This contract gives
to a ward of the state who died without
[FR Doc. 2015–32470 Filed 12–23–15; 8:45 am] purchasers confidence that the United
heirs.1 In this context, Treasury stated
BILLING CODE 4210–67–P States will honor its debts when a
that it will not recognize a state claim
purchaser surrenders a savings bond for
to the custody of savings bonds, but will
payment. The contract also protects the
recognize an escheat judgment that
DEPARTMENT OF THE TREASURY public fisc by ensuring that Treasury
confers title on a state because ‘‘in
does not face multiple claims for
escheat the state is ‘the ultimate heir.’ ’’ 2
Fiscal Service payment on a single savings bond.
Under Treasury regulations, savings The 1952 bulletin does not identify a
bonds have always been registered specific regulation authorizing state
31 CFR Parts 315, 353, and 360
securities. The regulations authorize escheat claims, the full criteria under
[Docket No.: FISCAL–2015–0002] which they will be considered, or a
several forms of registration, including
RIN 1530–AA11 registration to individuals who are process for submitting them. Because
owners, co-owners, and beneficiaries, as the state did not claim title over the
Regulations Governing United States well as to fiduciaries and institutions. bonds, this kind of detail was
Savings Bonds See 31 CFR 315.7, 353.7, and 360.6. The unnecessary.
tkelley on DSK3SPTVN1PROD with RULES

regulations also provide that savings Treasury addressed a new, broader
AGENCY: Bureau of the Fiscal Service, custody escheat claim in 2004 and 2006,
Fiscal Service, Treasury. bonds are not transferrable and are
ACTION: Final rule. payable only to the registered owner, 1 Public Debt Bulletin No. 111, Subject: State
except as described in Treasury Statutes Concerning Abandoned Property (Feb. 27,
SUMMARY: The United States Department regulations. See 31 CFR 315.15, 353.15, 1952) at 1.
of the Treasury, Bureau of the Fiscal and 360.15. Detailed regulations 2 Id. at 3.

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Document Created: 2015-12-24 02:25:28
Document Modified: 2015-12-24 02:25:28

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule; correction.
Dates		Effective January 6, 2016.
Contact		Scott Moore, Financial Operations Analyst, Office of the Chief Financial Officer, Financial Policy & Procedures Division, 451 7th Street SW., Room 3210, Washington, DC 20410, telephone number 202-402-2277, or Loyd LaMois, Supervisory Program Analyst, Office of Strategic Planning and Management, 451 7th Street SW., Room 3156, Washington, DC 20410, telephone number 202-402- 3964. These are not a toll-free numbers. Persons with hearing or speech impairments may access these numbers through TTY by calling the Federal Relay Service, toll-free, at 800-877-8339.
FR Citation		80 FR 80257
RIN Number		2501-AD66