81 FR 84415 - Federal Reserve Bank Capital Stock
FEDERAL RESERVE SYSTEM Federal Register Volume 81, Issue 226 (November 23, 2016)
Federal Register Volume 81, Issue 226 (November 23, 2016)
| Page Range | 84415-84419 | |
| FR Document | 2016-28231 |
[Federal Register Volume 81, Number 226 (Wednesday, November 23, 2016)] [Rules and Regulations] [Pages 84415-84419] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28231] ======================================================================= ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM 12 CFR Part 209 [Regulation I; Docket No. R-1533] RIN 7100-AE 47 Federal Reserve Bank Capital Stock AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Board of Governors (Board) is adopting, in final form and without change, an interim final rule amending Regulation I. The final rule establishes procedures for payment of dividends by the Federal Reserve Banks (Reserve Banks) to implement the provisions of section 32203 of the ``Fixing America's Surface Transportation Act.'' The final rule sets out the dividend rates applicable to Reserve Bank depository institution stockholders and amends provisions of Regulation I regarding treatment of accrued dividends when a Reserve Bank issues or cancels Federal Reserve Bank capital stock. DATES: This final rule is effective on January 1, 2017. FOR FURTHER INFORMATION CONTACT: Evan Winerman, Counsel (202-872-7578), Legal Division; or Kimberly Zaikov, Financial Project Leader (202/452- 2256), Reserve Bank Operations and Payments Systems Division. Users of Telecommunication Device for Deaf (TDD) only, call (202) 263-4869. [[Page 84416]] SUPPLEMENTARY INFORMATION: I. Overview Regulation I governs the issuance and cancellation of capital stock by the Reserve Banks. Under section 5 of the Federal Reserve Act \1\ and Regulation I,\2\ a member bank must subscribe to capital stock of the Reserve Bank of its district in an amount equal to six percent of the member bank's capital and surplus. The member bank must pay for one-half of this subscription on the date that the Reserve Bank approves its application for capital stock, while the remaining half of the subscription shall be subject to call by the Board.\3\ --------------------------------------------------------------------------- \1\ 12 U.S.C. 287. \2\ 12 CFR 209.4(a). \3\ 12 U.S.C. 287 and 12 CFR 209.4(c)(2). --------------------------------------------------------------------------- Prior to January 1, 2016, all member banks were entitled to a six percent dividend on their paid-in capital stock. As of January 1, 2016, the ``Fixing America's Surface Transportation Act'' (``FAST Act'') \4\ amended section 7(a)(1) of the Federal Reserve Act \5\ to provide that stockholders with more than $10 billion in total consolidated assets shall receive a dividend on paid-in capital stock equal to the lesser of six percent and ``the rate equal to the high yield of the 10-year Treasury note auctioned at the last auction held prior to the payment of such dividend,'' while stockholders with $10 billion or less in total consolidated assets shall continue to receive a six percent dividend. The FAST Act also provides that the Board must adjust the $10 billion threshold for total consolidated assets annually to reflect the change in the Gross Domestic Product Price Index, published by the Bureau of Economic Analysis. --------------------------------------------------------------------------- \4\ Public Law 114-94, 129 Stat. 1312 (2015). See https://www.congress.gov/114/bills/hr22/BILLS-114hr22enr.pdf/. \5\ 12 U.S.C. 289(a)(1). --------------------------------------------------------------------------- On February 24, 2016, the Board published an interim final rule and request for comment in the Federal Register (81 FR 9082) that amends Regulation I to implement section 32203 of the FAST Act. The interim final rule allowed the Reserve Banks to continue their practice of making semi-annual dividend payments, although at a new rate for larger institutions. In addition, Regulation I contains provisions with respect to the treatment of accrued dividends when a Reserve Bank issues new stock or cancels existing stock. These Regulation I provisions implement portions of sections 5, 6, and 9 of the Federal Reserve Act, which were not amended by the FAST Act. Section 5 provides that (1) when a Reserve Bank issues new shares to a stockholder, the stockholder must pay the Reserve Bank for accrued dividends at a monthly rate of one-half of one percent from the last dividend and, correspondingly, (2) when a stockholder reduces or liquidates its holding of Reserve Bank stock, the Reserve Bank must pay the stockholder for accrued dividends at a monthly rate of one-half of one percent from the last dividend. Similarly, sections 6 and 9(10) of the Federal Reserve Act state that, when a member bank becomes insolvent or voluntarily withdraws from Reserve Bank membership, the Reserve Bank shall pay accrued dividends on the bank's cancelled stock at a monthly rate of one-half of one percent. Prior to the amendments published in the interim final rule, Regulation I adopted the approach described in sections 5, 6, and 9(10) of the Federal Reserve Act, providing in Sec. Sec. 209.4(d) and 209.4(e)(1) that dividends for subscriptions to, and cancellations of, Reserve Bank stock shall accrue at a monthly rate of one-half of one percent. As discussed below, the interim final rule adjusted the accrued dividend rates for larger institutions to be consistent with the rate adopted in the FAST Act. II. Summary of Comments Received and Final Rule A. Public Comments The Board received nine comments on the interim final rule: One from a trade association representing commercial banks; one from a small commercial bank; and seven from individual members of the public. The trade association and the commercial bank expressed concerns regarding Congress's decision to lower the statutory dividend rate for banks with more than $10 billion in total consolidated assets, while other commenters supported Congress's decision. None of the commenters suggested specific changes to the text of the interim final rule. B. Description of Final Rule 1. Dividend Payment Rate Like the interim final rule, the final rule amends Regulation I to include a new paragraph, Sec. 209.4(e), addressing the rate for dividend payments by the Reserve Banks. Section 209.4(e)(1)(i) implements the FAST Act provision requiring that banks with more than $10 billion in total consolidated assets receive a dividend on their Reserve Bank capital stock at an annual rate of the lesser of six percent and the high yield of the 10-year Treasury note auctioned at the last auction held prior to the payment of the dividend. Section 209.4(e)(1)(ii) provides that banks with $10 billion or less in total consolidated assets will continue to receive a dividend at an annual rate of six percent. Section 209.4(e)(3) provides that dividends are cumulative, as required by section 7 of the Federal Reserve Act. Section 209.4(e)(2) provides that each dividend ``will be adjusted to reflect the period from the last dividend payment date to the current dividend payment date according to the dividend proration basis.'' Section 209.1(d)(2) in turn defines ``dividend proration basis'' as ``the use of a 360-day year of 12 30-day months for purposes of computing dividend payments.'' Thus, under the interim final rule, a semi-annual dividend payment to a stockholder with $10 billion or less in total consolidated assets continues to be calculated as three percent of paid-in capital. A semi-annual dividend payment to a stockholder with more than $10 billion in total consolidated assets would be calculated as the lesser of three percent or one-half of the high yield of the 10-year Treasury note auctioned at the last auction held prior to the payment of the dividend. 2. Payment of Accrued Dividends for Subscriptions to Reserve Bank Stock Section 5 of the Federal Reserve Act requires that member banks subscribe to new stock of the appropriate Reserve Bank whenever the member bank increases its own capital stock, so as to maintain an investment in Federal Reserve Bank stock equal to 3 percent of the member bank's capital and surplus. Banks also become member banks throughout the year. As discussed above, section 5 of the Federal Reserve Act provides that, when a stockholder subscribes to new capital stock, it must pay for accrued dividends on that new stock at a monthly rate of one-half of one percent from the last dividend (i.e., a monthly rate derived from a six percent annual rate). Prior to the amendments published in the interim final rule, Regulation I adopted the same approach. This requirement ensures that the stockholder will not be overcompensated at the next dividend payment, because the stockholder has paid in advance for the portion of the stockholder's next dividend payment attributable to the period for which the member bank did not own the stock. Although section 5 of the Federal Reserve Act continues to provide that a stockholder should pay for accrued dividends at a monthly rate of one-half of one percent from the last dividend, section 7 of the Federal Reserve Act now provides that stockholders with more than $10 billion in total [[Page 84417]] consolidated assets will receive an annual dividend at the lesser of six percent and the high yield of the 10-year Treasury note auctioned at the last auction held prior to the payment of the dividend. Applying sections 5 and 7 literally could cause a larger stockholder to overpay for accrued dividends if it paid at a rate based on a six percent annual rate but received its next dividend payment at an annual rate below six percent (assuming the high yield of the 10-year Treasury note at the applicable auction was below six percent). Like the interim final rule, the final rule reconciles the conflict between sections 5 and 7 of the Federal Reserve Act by requiring that a stockholder with more than $10 billion in total consolidated assets pay for accrued dividends at an annual rate of the lesser of six percent and the high yield of the 10-year Treasury note auctioned at the last auction held prior to the previous dividend payment date (that is, the rate used for the previous dividend payment to stockholders with more than $10 billion in total consolidated assets), prorated to cover the period between the last dividend payment date and the date of subscription. This approach allows a larger stockholder to pay for accrued dividends at a rate that is generally close to the dividend rate the stockholder will earn at the next dividend payment. This approach also resolves the statutory conflict in favor of giving effect to the most recent Congressional act regarding the payment of dividends as provided in the FAST Act. Conversely, the interim final rule provided that stockholders with $10 billion or less in total consolidated assets will continue to pay for accrued dividends at an annual rate of six percent (prorated to cover the period between the last dividend payment date and the date of subscription), as those stockholders will continue to receive a six percent annual dividend. This approach is adopted in the final rule without change. The final rule also provides at Sec. 209.4(c)(3) for an adjustment at the next annual dividend if a stockholder pays for accrued dividends at a rate that is different from the annualized rate that the stockholder ultimately receives at the next scheduled dividend payment date. This adjustment equals the difference between the accrued dividends the stockholder paid for the additional subscription and the portion of the next dividend payment attributable to that additional subscription, prorated to cover the period from the last dividend payment date to the subscription date. 3. Payment of Accrued Dividends for Cancellations of Reserve Bank Stock Section 5 of the Federal Reserve Act requires that a member bank seek redemption of its Federal Reserve Bank stock as the capital of the member bank declines, so as to maintain an investment in Federal Reserve Bank stock equal to 3 percent of the member bank's capital and surplus. Banks also relinquish membership throughout the year. As discussed above, three provisions of the Federal Reserve Act (sections 5, 6, and 9(10)) state that, when a Reserve Bank cancels stock, the Reserve Bank shall pay the stockholder for accrued dividends at a monthly rate of one-half of one percent from the last dividend (i.e., a monthly rate derived from a six percent annual rate). Prior to the amendments published in the interim final rule, Regulation I adopted the same approach. Sections 5, 6, and 9(10) of the Federal Reserve Act now conflict with section 7 of the Federal Reserve Act, which provides (following passage of the FAST Act) that stockholders with more than $10 billion in total consolidated assets will receive an annual dividend at the lesser of six percent and the high yield of the 10-year Treasury note auctioned at the last auction held prior to the payment of the dividend. The final rule reconciles sections 5, 6, and 9(10) of the Federal Reserve Act with section 7 of the Federal Reserve Act by requiring the Reserve Banks to pay accrued dividends to stockholders with more than $10 billion of total consolidated assets at an annual rate of the lesser of six percent and the high yield of the 10-year Treasury note auctioned at the last auction held prior to the date of cancellation, prorated to cover the period between the last dividend payment date and the date of cancellation. As noted above, this approach also resolves the statutory conflict between sections 5, 6, and 9(10), on the one hand, and section 7 on the other, in favor of the most recent Congressional act regarding dividends expressed in the FAST Act. Conversely, the final rule provides that, when a Reserve Bank cancels stock of a stockholder with $10 billion or less in total consolidated assets, the Reserve Bank will pay the stockholder for accrued dividends at an annual rate of six percent (prorated to cover the period between the last dividend payment date and the date of cancellation), as those stockholders will continue to receive a six percent annual dividend. 4. Total Consolidated Assets: Definition and Inflation Adjustment The dividend rate to which a stockholder is entitled under Section 7 of the Federal Reserve Act (as amended by the FAST Act) depends on the stockholder's ``total consolidated assets.'' The final rule amends Regulation I to include a new paragraph, Sec. 209.1(d)(3), that generally defines total consolidated assets by reference to total assets reported on the stockholder's most recent December 31 Consolidated Report of Condition and Income (Call Report).\6\ When a bank joins the Federal Reserve System or when a member bank merges with another entity and the surviving bank continues to be a Reserve Bank stockholder, the bank may have never filed a year-end call report, or its most recent year-end call report may not accurately reflect the institution's size. Accordingly, the new member bank or the surviving bank must report whether its total consolidated assets exceed $10 billion in its application for capital stock, which would be shortly after the transaction or the date that the bank becomes a member bank. To that end, the final rule amends Sec. 209.2(a) to require that a bank seeking to join the Federal Reserve System report whether its total consolidated assets exceed $10 billion in its application for capital stock. Similarly, the final rule adds a new paragraph, Sec. 209.3(d)(3), that requires a surviving bank to report whether its total consolidated assets exceed $10 billion when it submits its next application for additional capital stock. --------------------------------------------------------------------------- \6\ The Board has also moved, without revision, the definition of ``capital stock and surplus'' to the definitions in new Sec. 209.1(d). --------------------------------------------------------------------------- Section 7(a)(1)(C) of the Federal Reserve Act (added by the FAST Act) requires that the Board make an annual inflation adjustment to the total consolidated asset threshold that determines the dividend rate to which a Reserve Bank is entitled. The final rule implements this provision at Sec. 209.4(f). The Board expects to make this adjustment using the final second quarter estimate of the Gross Domestic Product Price Index for each year, published by the Bureau of Economic Analysis. III. Regulatory Analysis A. Regulatory Flexibility Act Analysis In accordance with section 604 of the Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601 et seq., the Board is publishing a final regulatory flexibility analysis for the final rule. The RFA [[Page 84418]] generally requires an agency to assess the impact a rule is expected to have on small entities. Under size standards established by the Small Business Administration, banks and other depository institutions are considered ``small'' if they have less than $550 million in assets.\7\ The RFA requires an agency either to provide a regulatory flexibility analysis or to certify that the final rule will not have a significant economic impact on a substantial number of small entities. --------------------------------------------------------------------------- \7\ 13 CFR 121.201. --------------------------------------------------------------------------- The final rule implements amendments to the Federal Reserve Act that provide that Reserve Bank stockholders with more than $10 billion in total consolidated assets will receive a dividend at an annual rate equal to the lower of six percent and the high yield of the 10-year Treasury note auctioned at the last auction held prior to the payment of such dividend (with such dividend prorated to cover the period between the last dividend payment date and the current dividend payment date). The final rule also provides that, if a Reserve Bank cancels stock of a stockholder with more than $10 billion in total consolidated assets, the Reserve Bank will pay the stockholder accrued dividends at an annual rate of the lesser of six percent and the high yield of the most recent 10-year Treasury note auction held prior to the date of cancellation, prorated to cover the period between the last dividend payment date and the cancellation date. Finally, the final rule provides that, if a Reserve Bank issues new stock to a stockholder with more than $10 billion in total consolidated assets, the stockholder will pay accrued dividends on such stock at an annual rate of the lesser of six percent and the high yield of the most recent 10-year Treasury note auction held prior to the previous dividend payment date (prorated to cover the period between the last dividend payment date and the subscription date). The next regular dividend payment to that stockholder would be adjusted to account for the difference between the rate at which the stockholder paid for accrued dividends and the rate at which the stockholder receives the regular dividend payment. Under the final rule, Reserve Bank stockholders with $10 billion or less in total consolidated assets will continue to receive a dividend on their Reserve Bank stock at an annual rate of six percent (prorated to cover the period between the last dividend payment and the current dividend payment). If a Reserve Bank issues new stock to, or cancels existing stock of, a stockholder with $10 billion or less in total consolidated assets, the stockholder or the Reserve Bank would (respectively) continue to pay accrued dividends on such stock at an annual rate of six percent (prorated to cover the period between the last dividend payment date and the subscription date or the cancellation date). Additionally, the final rule continues to allow Reserve Banks to pay dividends semiannually to all stockholders, including banks with $10 billion or less in total consolidated assets. The Board received no public comments in response to the initial regulatory flexibility analysis, nor did it receive comments from the Chief Counsel for Advocacy of the Small Business Administration. The only new requirement that the final rule imposes on stockholders with $10 billion or less in total consolidated assets is that such a stockholder must report whether its total consolidated assets exceed $10 billion when the stockholder applies for (1) new capital stock upon joining the Federal Reserve System or (2) additional capital stock upon merging with another entity. Excluding these two situations, a Reserve Bank will determine the total consolidated assets of all stockholders by reference to the stockholder's most recent December 31 Call Report. The final rule requires the Board to make an annual inflation adjustment to the $10 billion total consolidated asset threshold. As noted above, a depository institution is ``small'' for purposes of the RFA if it has less than $550 million of assets. The final rule has no effect on small institutions. The Board expects that existing banks and banks that are in the process of organization can readily calculate their total consolidated assets to know if they are a large institution covered by the amendments. The Board currently requires that a bank file an application form with the Reserve Bank in whose district it is located if the bank wishes to join the Federal Reserve System or if the bank must increase or decrease its holding of Reserve Bank stock.\8\ The Board is revising these forms to require that, when a bank applies for membership or applies for new stock after merging with another entity, the bank report whether its total consolidated assets exceed $10 billion. --------------------------------------------------------------------------- \8\ See FR 2030 (application for capital stock for organizing national banks); FR 2030A (application for capital stock for nonmember state banks that are converting to national banks); FR 2083A (application for capital stock by state banks (except mutual savings banks) and national banks that are converting to state banks); FR 2083B (application for capital stock by mutual savings banks); FR 2056 (application for adjustment in holding of Reserve Bank stock). --------------------------------------------------------------------------- The RFA requires a description of why the agency rejected any significant alternatives that would have affected the impact of the rule on small entities. In this circumstance, there is no feasible alternative to requiring that a bank in the process of organization report whether its total consolidated assets exceed $10 billion when it applies to join the System, because such banks will not have filed a Call Report before applying for membership. With respect to measuring the total consolidated assets of a surviving bank after a merger, the Reserve Banks could alternatively (1) refer to the total assets reported by the surviving bank on its most recent December 31 Call Report or (2) add the total assets of the surviving bank and the nonsurviving bank as reported on each bank's most recent December 31 Call Report. These alternative approaches to measuring total consolidated assets in the merger context would reduce the reporting burden on small entities, but they would not provide timely and accurate notice to a Reserve Bank of whether a merger has caused a surviving bank's total consolidated assets to exceed $10 billion. The Board believes that requiring surviving banks to report whether total consolidated assets exceed $10 billion when they apply for additional capital stock is a minimal reporting burden of an amount that is known by the banks and serves the intent of the FAST Act. B. Paperwork Reduction Act Analysis In accordance with section 3512 of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) (PRA), the Board may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OMB control numbers are 7100-0042 and 7100-0046. The Board reviewed the final rule under the authority delegated to the Board by OMB. The final rule contains requirements subject to the PRA. The reporting requirements are found in Sec. Sec. 209.2(a) and 209.3(d)(3). The Board received no comments on the PRA analysis in the interim final rule. The Board has a continuing interest in the public's opinions of collections of information. At any time, comments regarding the burden estimate, or any other aspect of this collection of information, including suggestions for reducing the burden, may be sent to: Secretary, Board of Governors of the Federal Reserve System, 20th and C [[Page 84419]] Streets NW., Washington, DC 20551. A copy of the comments may also be submitted to the OMB desk officer (1) by mail to U.S. Office of Management and Budget, 725 17th Street NW., 10235, Washington, DC 20503; (2) by facsimile to 202-395-6974; or (3) by email to: oira_submission@omb.eop.gov, Attention, Federal Reserve Board Agency Desk Officer. Proposed Revisions, With Extension for Three Years, of the Following Information Collections (1) Title of Information Collection: Applications for Subscription to, Adjustment in Holding of, and Cancellation of Federal Reserve Bank Stock. Agency Form Number: FR 2030, FR 2030a, FR 2056, FR 2086, FR 2086a, FR 2087. OMB Control Number: 7100-0042. Frequency of Response: On occasion. Affected Public: Businesses or other for-profit. Respondents: National, State Member, and Nonmember banks. Abstract: These application forms are required by the Federal Reserve Act and Regulation I. These forms must be used by a new or existing member bank (including a national bank) to request the issuance, and adjustment in, or cancellation of Federal Reserve Bank stock. The forms must contain certain certifications by the applicants, as well as certain other financial and shareholder data that is needed by the Federal Reserve to process the request. Current Actions: The dividend rate to which a Reserve Bank stockholder is entitled under section 7 of the Federal Reserve Act (as amended by the FAST Act) depends on the stockholder's ``total consolidated assets.'' Section 209.2(a) requires a bank to report whether its total consolidated assets exceed $10 billion when it applies for membership in the Federal Reserve System. Section 209.3(d)(3) requires a bank to report whether its total consolidated assets exceed $10 billion when it applies for additional capital stock after merging with another entity. The Board is proposing to revise FR 2030, FR 2030a, and FR 2056 to require that a bank report whether its total consolidated assets exceed $10 billion when it applies to join the Federal Reserve System or applies for additional capital stock after merging with another entity. The proposed revisions would increase the estimated average hours per response for FR 2030 and FR 2030a by half an hour. The proposed revisions would increase the estimated average hours per response for FR 2056 by one quarter of an hour. The Board is not proposing to revise FR 2086, FR 2086A, and FR 2087. The draft reporting forms are available on the Board's public Web site at http://www.federalreserve.gov/apps/reportforms/review.aspx. Estimated annual reporting hours: FR 2030: 4 hours; FR 2030a: 2 hours; FR 2056: 1,000 hours; FR 2086: 5 hours; FR 2086a: 40 hours; FR 2087: 1 hour. Estimated average hours per response: FR 2030: 1 hour; FR 2030a: 1 hour; FR 2056: 0.75 hours; FR 2086: 0.5 hours; FR 2086a: 0.5 hours; FR 2087: 0.5 hours. Number of respondents: FR 2030: 4; FR 2030a: 2; FR 2056: 1,333; FR 2086: 10; FR 2086a: 79; FR 2087: 1. (2) Title of Information Collection: Application for Membership in the Federal Reserve System. Agency Form Number: FR 2083, FR 2083A, FR 2083B, and FR 2083C. OMB Control Number: 7100-0046. Frequency of Response: On occasion. Affected Public: Businesses or other for-profit. Respondents: Newly organized banks that seek to become state member banks, or existing banks or savings institutions that seek to convert to state member bank status. Abstract: The application for membership is a required one-time submission that collects the information necessary for the Federal Reserve to evaluate the statutory criteria for admission of a new or existing state bank into membership in the Federal Reserve System. The application collects managerial, financial, and structural data. Current Actions: The dividend rate to which a Reserve Bank stockholder is entitled under Section 7 of the Federal Reserve Act (as amended by the FAST Act) depends on the stockholder's ``total consolidated assets.'' Section 209.2(a) requires a bank to report whether its total consolidated assets exceed $10 billion when it applies for membership in the Federal Reserve System. The Board is proposing to revise FR 2083A and FR 2083B to require that a bank report whether its total consolidated assets exceed $10 billion when it applies to join the Federal Reserve System. The proposed revisions would increase the estimated average hours per response by half an hour. The Board is not proposing to revise FR 2083 or FR 2083C. The draft reporting forms are available on the Board's public Web site at http://www.federalreserve.gov/apps/reportforms/review.aspx. The estimated annual reporting hours listed below, and the estimated average hours per response, are cumulative totals for FR 2083, FR 2083A, FR 2083B, and FR 2083C. Estimated annual reporting hours: 207 hours. Estimated average hours per response: 4.5 hours. Number of respondents: 46. List of Subjects in 12 CFR Part 209 Banks and banking, Federal Reserve System, Reporting and recordkeeping requirements, Securities. PART 209--FEDERAL RESERVE BANK CAPITAL STOCK (REGULATION I) Accordingly, the interim final rule amending 12 CFR part 209, which was published at 81 FR 9082 on February 24, 2016, is adopted as a final rule without change. By order of the Board of Governors of the Federal Reserve System, November 18, 2016. Robert deV. Frierson, Secretary of the Board. [FR Doc. 2016-28231 Filed 11-22-16; 8:45 am] BILLING CODE 6210-01-P
![Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations 84415
Increase in estimated number of Increase in estimated number of ■ c. In paragraph (f)(2) introductory text,
annual respondents: 1,643. annual respondents: 11,106. first sentence, remove the words
Increase in estimated number of Increase in estimated number of ‘‘suspended or’’;
annual responses: 1,643. annual responses: 22,212. ■ d. In paragraph (f)(3), first and second
Estimated average time burden per Estimated average time burden per sentences, remove the words
response: 10 minutes (0.17 hours). response: 1 minute (0.016 hours). ‘‘suspension or’’;
Increase in estimated total annual Increase in estimated total annual ■ e. In paragraph (f)(4), remove ‘‘,
time burden: 279 hours. time burden: 356 hours. suspended,’’;
Initial U.S. ABTC applicants who join F. Privacy ■ f. In paragraph (g)(1), remove all
Global Entry to meet a U.S. ABTC occurrences of the phrase ‘‘denial,
Program membership requirement DHS will ensure that all Privacy Act
suspension or removal’’ and add in its
requirements and policies are adhered
increased the number of Global Entry place ‘‘denial or removal’’ and remove
to in the implementation of this rule. In
applications and burden hours as the words ‘‘date of suspension or
this regard, DHS has updated the
follows: removal’’ and add in their place ‘‘date
Privacy Impact Assessment for the
Global Entry Applications: 42 of removal’’;
Global Enrollment System (GES) on
Increase in estimated number of ■ g. In paragraph (g)(2), remove the
November 1, 2016, which fully outlines
annual respondents: 2,099. phrase ‘‘denial, suspension or removal’’
processes to ensure compliance with
Increase in estimated number of and add in its place ‘‘denial or
Privacy Act protections relevant to this
annual responses: 2,099. removal’’; and
rule. See https://www.dhs.gov/sites/
Estimated average time burden per ■ h. In paragraph (h), second sentence,
default/files/publications/privacy-pia-
response: 40 minutes (0.67 hours). remove the words ‘‘suspended or’’.
cbp-ges-november2016.pdf.
Increase in estimated total annual Dated: November 17, 2016.
time burden: 1,407 hours. VII. Authority
Jeh Charles Johnson,
Approved U.S. ABTC members who This regulation is issued under the
joined Global Entry for their U.S. ABTC Secretary.
authority of 5 U.S.C. 301, 6 U.S.C. 112, [FR Doc. 2016–28177 Filed 11–22–16; 8:45 am]
Program membership also increased the 203 and 211, 8 U.S.C. 1103 and 19
Global Entry kiosk usage rate and U.S.C. 2, 66 and 1624, and Public Law
BILLING CODE 9111–14–P
burden hours through their use of the 112–54.
kiosks for expedited CBP clearance
upon returning to the United States List of Subjects in 8 CFR Part 235 FEDERAL RESERVE SYSTEM
from an APEC economy. The additional Administrative practice and
Global Entry kiosk burden hours procedure, Aliens, Immigration, 12 CFR Part 209
directly resulting from the U.S. ABTC Reporting and recordkeeping [Regulation I; Docket No. R–1533]
Program are as follows: requirements.
RIN 7100–AE 47
Global Entry Kiosk Use: 43
Amendments to Regulations
Federal Reserve Bank Capital Stock
5— ‘‘Total U.S. ABTC Renewals’’ in FY 2017). For For the reasons set forth in the
the purposes of this information collection, CBP preamble, the IFR amending 8 CFR AGENCY: Board of Governors of the
includes the renewal figures in the overall U.S. 103.7(b)(1)(ii)(N) and adding a new
ABTC application estimates because the burden for Federal Reserve System.
initial U.S. ABTC Program application and renewal section 235.13, which was published at ACTION: Final rule.
are both assumed to be 10 minutes. 79 FR 27161 on May 13, 2014, is
42 Individuals interested in joining the U.S. ABTC adopted as final with the following SUMMARY: The Board of Governors
Program who are not already CBP trusted traveler changes: (Board) is adopting, in final form and
members will need to initially apply for a CBP
trusted traveler program membership to meet one without change, an interim final rule
of the U.S. ABTC Program’s membership
PART 235—INSPECTION OF PERSONS amending Regulation I. The final rule
requirements. CBP estimates that the 9,692 initial APPLYING FOR ADMISSION establishes procedures for payment of
applicants who are not already in a CBP trusted dividends by the Federal Reserve Banks
traveler program will concurrently apply for the ■ 1. The authority citation for part 235
U.S. ABTC Program and CBP’s Global Entry trusted continues to read as follows: 8 U.S.C. (Reserve Banks) to implement the
traveler program, incurring a 40-minute time 1101 and note, 1103, 1183, 1185 provisions of section 32203 of the
burden to complete the Global Entry application,
(pursuant to E.O.13323, 69 FR 241, 3 ‘‘Fixing America’s Surface
complete the U.S. ABTC self-certification, schedule Transportation Act.’’ The final rule sets
their required Global Entry enrollment interview, CFR, 2004 Comp., p.278), 1201, 1224,
pay the program application fees, and have their 1225, 1226, 1228, 1365a note, 1365b, out the dividend rates applicable to
signature digitally captured for the U.S. ABTC 1379, 1731–32; Title VII of Public Law Reserve Bank depository institution
Program. These initial Global Entry application
110–229; 8 U.S.C. 1185 note (section stockholders and amends provisions of
estimates account for the 9,692 individuals who are Regulation I regarding treatment of
not already in a CBP trusted traveler program and 7209 of Pub. L. 108–458); Public Law
their related U.S. ABTC application burdens. 112–54. accrued dividends when a Reserve Bank
43 CBP now estimates that by the end of FY 2017, issues or cancels Federal Reserve Bank
24,520 individuals who were not already members § 235.13 [Amended] capital stock.
of a CBP trusted traveler program will become joint
members of the U.S. ABTC Program and Global
■ 2. Amend § 235.13 as follows: DATES: This final rule is effective on
Entry (see ‘‘Executive Order 13563 and Executive ■ a. In paragraph (c)(6), first sentence, January 1, 2017.
Order 12866’’ section, Table 4— ‘‘Number of Initial remove the number ‘‘3’’ and add in its FOR FURTHER INFORMATION CONTACT:
mstockstill on DSK3G9T082PROD with RULES
U.S. ABTC Applications Approved for Members place the word ‘‘five’’ and remove the Evan Winerman, Counsel (202–872–
Not Already in a CBP Trusted Traveler Program’’ in words ‘‘suspended or’’;
FY 2014–FY 2017). Due to data limitations, CBP 7578), Legal Division; or Kimberly
■ b. Revise the paragraph (f) subject
assumes that these 24,520 U.S. ABTC Program Zaikov, Financial Project Leader (202/
members will use Global Entry kiosks twice per heading to read ‘‘Denial and removal’’; 452–2256), Reserve Bank Operations
year as this is the minimum number of annual trips
one of these members would have to take for the 49,040 kiosk responses per year. These Global Entry
and Payments Systems Division. Users
benefits of joining the U.S. ABTC Program to kiosk use estimates account for the 49,040 kiosk of Telecommunication Device for Deaf
outweigh its costs. This translates to an additional responses and the related burdens. (TDD) only, call (202) 263–4869.
VerDate Sep<11>2014 16:26 Nov 22, 2016 Jkt 241001 PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 E:\FR\FM\23NOR1.SGM 23NOR1](https://thefederalregister.org/doc/81_FR_84641/page/1.svg)
![Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations 84419
Streets NW., Washington, DC 20551. A proposing to revise FR 2086, FR 2086A, Estimated annual reporting hours:
copy of the comments may also be and FR 2087. The draft reporting forms 207 hours.
submitted to the OMB desk officer (1) by are available on the Board’s public Web Estimated average hours per response:
mail to U.S. Office of Management and site at http://www.federalreserve.gov/ 4.5 hours.
Budget, 725 17th Street NW., 10235, apps/reportforms/review.aspx. Number of respondents: 46.
Washington, DC 20503; (2) by facsimile Estimated annual reporting hours: FR
List of Subjects in 12 CFR Part 209
to 202–395–6974; or (3) by email to: 2030: 4 hours; FR 2030a: 2 hours; FR
oira_submission@omb.eop.gov, 2056: 1,000 hours; FR 2086: 5 hours; FR Banks and banking, Federal Reserve
Attention, Federal Reserve Board 2086a: 40 hours; FR 2087: 1 hour. System, Reporting and recordkeeping
Agency Desk Officer. Estimated average hours per response: requirements, Securities.
Proposed Revisions, With Extension for FR 2030: 1 hour; FR 2030a: 1 hour; FR
2056: 0.75 hours; FR 2086: 0.5 hours; FR PART 209—FEDERAL RESERVE BANK
Three Years, of the Following CAPITAL STOCK (REGULATION I)
Information Collections 2086a: 0.5 hours; FR 2087: 0.5 hours.
Number of respondents: FR 2030: 4; Accordingly, the interim final rule
(1) Title of Information Collection: FR 2030a: 2; FR 2056: 1,333; FR 2086: amending 12 CFR part 209, which was
Applications for Subscription to, 10; FR 2086a: 79; FR 2087: 1. published at 81 FR 9082 on February 24,
Adjustment in Holding of, and (2) Title of Information Collection: 2016, is adopted as a final rule without
Cancellation of Federal Reserve Bank Application for Membership in the change.
Stock. Federal Reserve System.
Agency Form Number: FR 2030, FR By order of the Board of Governors of the
Agency Form Number: FR 2083, FR Federal Reserve System, November 18, 2016.
2030a, FR 2056, FR 2086, FR 2086a, FR 2083A, FR 2083B, and FR 2083C.
2087. Robert deV. Frierson,
OMB Control Number: 7100–0046.
OMB Control Number: 7100–0042. Secretary of the Board.
Frequency of Response: On occasion. Frequency of Response: On occasion.
Affected Public: Businesses or other [FR Doc. 2016–28231 Filed 11–22–16; 8:45 am]
Affected Public: Businesses or other
for-profit. BILLING CODE 6210–01–P
for-profit.
Respondents: National, State Member, Respondents: Newly organized banks
and Nonmember banks. that seek to become state member banks,
Abstract: These application forms are or existing banks or savings institutions DEPARTMENT OF COMMERCE
required by the Federal Reserve Act and that seek to convert to state member
Regulation I. These forms must be used bank status. National Oceanic and Atmospheric
by a new or existing member bank Abstract: The application for Administration
(including a national bank) to request membership is a required one-time
the issuance, and adjustment in, or submission that collects the information 15 CFR Part 902
cancellation of Federal Reserve Bank necessary for the Federal Reserve to
stock. The forms must contain certain evaluate the statutory criteria for 50 CFR Part 660
certifications by the applicants, as well admission of a new or existing state [Docket No. 140905757–6999–02]
as certain other financial and bank into membership in the Federal
Reserve System. The application RIN 0648–BE42
shareholder data that is needed by the
Federal Reserve to process the request. collects managerial, financial, and
Fisheries Off West Coast States;
Current Actions: The dividend rate to structural data.
Pacific Coast Groundfish Fishery
which a Reserve Bank stockholder is Current Actions: The dividend rate to
Management Plan; Commercial
entitled under section 7 of the Federal which a Reserve Bank stockholder is
Sablefish Fishing Regulations and
Reserve Act (as amended by the FAST entitled under Section 7 of the Federal
Electronic Fish Tickets
Act) depends on the stockholder’s ‘‘total Reserve Act (as amended by the FAST
consolidated assets.’’ Section 209.2(a) Act) depends on the stockholder’s ‘‘total AGENCY: National Marine Fisheries
requires a bank to report whether its consolidated assets.’’ Section 209.2(a) Service (NMFS), National Oceanic and
total consolidated assets exceed $10 requires a bank to report whether its Atmospheric Administration (NOAA),
billion when it applies for membership total consolidated assets exceed $10 Commerce.
in the Federal Reserve System. Section billion when it applies for membership ACTION: Final rule.
209.3(d)(3) requires a bank to report in the Federal Reserve System. The
whether its total consolidated assets Board is proposing to revise FR 2083A SUMMARY: This final rule revises fishery
exceed $10 billion when it applies for and FR 2083B to require that a bank monitoring and equipment requirements
additional capital stock after merging report whether its total consolidated for all commercial groundfish fisheries.
with another entity. The Board is assets exceed $10 billion when it In particular, it establishes a
proposing to revise FR 2030, FR 2030a, applies to join the Federal Reserve requirement for submitting electronic
and FR 2056 to require that a bank System. The proposed revisions would fish tickets (EFT) in the limited entry
report whether its total consolidated increase the estimated average hours per fixed gear fisheries and open access
assets exceed $10 billion when it response by half an hour. The Board is fisheries. This final rule also: revises
applies to join the Federal Reserve not proposing to revise FR 2083 or FR administrative procedures for limited
System or applies for additional capital 2083C. The draft reporting forms are entry permits, providing greater
stock after merging with another entity. available on the Board’s public Web site flexibility and efficiencies for limited
mstockstill on DSK3G9T082PROD with RULES
The proposed revisions would increase at http://www.federalreserve.gov/apps/ entry groundfish fishery participants;
the estimated average hours per reportforms/review.aspx. The estimated requires vessels registered to Vessel
response for FR 2030 and FR 2030a by annual reporting hours listed below, Monitoring Systems (VMS) to make an
half an hour. The proposed revisions and the estimated average hours per initial declaration report; and makes
would increase the estimated average response, are cumulative totals for FR administrative changes and clarifying
hours per response for FR 2056 by one 2083, FR 2083A, FR 2083B, and FR edits to improve consistency of the
quarter of an hour. The Board is not 2083C. regulations with past Pacific Fishery
VerDate Sep<11>2014 16:26 Nov 22, 2016 Jkt 241001 PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 E:\FR\FM\23NOR1.SGM 23NOR1](https://thefederalregister.org/doc/81_FR_84641/page/5.svg)
Document Created: 2016-11-23 05:30:11
Document Modified: 2016-11-23 05:30:11
| 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. | |
| Dates | This final rule is effective on January 1, 2017. | |
| Contact | Evan Winerman, Counsel (202-872-7578), Legal Division; or Kimberly Zaikov, Financial Project Leader (202/452- 2256), Reserve Bank Operations and Payments Systems Division. Users of Telecommunication Device for Deaf (TDD) only, call (202) 263-4869. | |
| FR Citation | 81 FR 84415 | |
| CFR Associated | Banks and Banking; Federal Reserve System; Reporting and Recordkeeping Requirements and Securities |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR