82 FR 49286 - Rules Regarding Availability of Information

FEDERAL RESERVE SYSTEM

Federal Register Volume 82, Issue 205 (October 25, 2017)

Page Range		49286-49287
FR Document		2017-23095

The Board is finalizing its interim final rule amending its regulations for processing requests under the Freedom of Information Act (``FOIA'') pursuant to the FOIA Improvement Act of 2016 (the ``Act''). The amendments clarify and update procedures for requesting information from the Board, extend the deadline for administrative appeals, and add information on dispute resolution services. The interim final rule became effective on December 27, 2016. This rulemaking finalizes the interim rule with minor edits.

Federal Register, Volume 82 Issue 205 (Wednesday, October 25, 2017)

[Federal Register Volume 82, Number 205 (Wednesday, October 25, 2017)]
[Rules and Regulations]
[Pages 49286-49287]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-23095]


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FEDERAL RESERVE SYSTEM

12 CFR Part 261

[Docket No. R-1556]
RIN 7100-AE65


Rules Regarding Availability of Information

AGENCY: Board of Governors of the Federal Reserve System (``Board'').

ACTION: Final rule.

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SUMMARY: The Board is finalizing its interim final rule amending its 
regulations for processing requests under the Freedom of Information 
Act (``FOIA'') pursuant to the FOIA Improvement Act of 2016 (the 
``Act''). The amendments clarify and update procedures for requesting 
information from the Board, extend the deadline for administrative 
appeals, and add information on dispute resolution services. The 
interim final rule became effective on December 27, 2016. This 
rulemaking finalizes the interim rule with minor edits.

DATES: This final rule is effective on November 24, 2017.

FOR FURTHER INFORMATION CONTACT: Katherine Wheatley, Associate General 
Counsel, (202) 452-3779, or Misty Mirpuri, Counsel, (202) 452-2597, 
Board of Governors of the Federal Reserve System, 20th and C Streets 
NW., Washington, DC 20551. Users of telecommunications device for the 
hearing impaired, please call (202) 263-4869.

SUPPLEMENTARY INFORMATION: 

I. Overview of Final Rule

    On December 27, 2016, the Board published an interim final rule \1\ 
amending its existing Rules found at 12 CFR part 261, in order to 
comply with the statutory changes required by the FOIA Improvement Act 
of 2016 (``Improvement Act'').\2\ Amendments to the Rules adopted 
statutory exemptions and exceptions as required by the Improvement Act. 
The interim final rule became effective on December 27, 2016, and the 
Board accepted comments through February 27, 2017. The Board is 
finalizing the interim rule with minor

[[Page 49287]]

changes to paragraph 261.13(i)(4) in response to a public comment.
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    \1\ 81 FR 94932 (Dec. 27, 2016).
    \2\ Public Law 114-185, 130 Stat. 538 (enacted June 30, 2016).
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II. Summary of Public Comments and Final Rule

    Interested persons were afforded the opportunity to participate in 
the rulemaking process through submission of written comments on the 
interim final rule during the open comment period. The Board is 
adopting a minor revision to the interim final rule in response to a 
comment from the Office of Government Information Services within the 
National Archives and Records Administration (``OGIS'').\3\
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    \3\ The Board received a second comment requesting that it amend 
the rule in a manner unrelated to the amendments required by the 
Improvement Act. While the Board intends to make more extensive 
amendments to its FOIA Rule at a later time, the interim final rule 
only addressed the matters required by the Improvement Act, and 
further changes to the Rule will be preceded by a request for public 
comment.
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    OGIS asked the Board to revise section 261.13(i)(4) of the Rules to 
require that a determination letter on an appeal inform appellants of 
the availability of OGIS's dispute resolution services. Although not 
required by the FOIA statute, this change is consistent with guidance 
issued by the Department of Justice's Office of Information Policy. 
Accordingly, the Board has determined to edit the language in paragraph 
(i)(4) of section 261.13 to notify an appealing party of the 
availability of OGIS's dispute resolution services as a nonexclusive 
alternative to litigation.
    The Board has determined not to adopt two other suggestions by 
OGIS. OGIS's proposed amendment would add a statement that ``[d]ispute 
resolution is a voluntary process.'' This sentence appears to be 
unnecessary and repetitive given that the Board is already advising 
appellants that dispute resolution services are available as a 
``nonexclusive alternative to litigation.'' OGIS also proposed language 
stating that the Board will ``actively engage as a partner to the 
process in an attempt to resolve the dispute'' if the Board 
participates in the OGIS dispute resolution process. Although active 
engagement in attempting to resolve a FOIA dispute is of course not 
unreasonable, the proposed sentence could create additional legal 
obligations not required under the FOIA. Accordingly, aside from adding 
in language regarding the availability of OGIS's dispute resolution 
services as a nonexclusive alternative to litigation, the Board is 
adopting section 261.13(i)(4) in the final rule without any further 
change.

III. Regulatory Requirements

    As the Board noted in its interim rule, Congress required that the 
substantive changes to the Board's Rules under the Improvement Act 
become effective by December 27, 2016, and the other amendments to the 
Board's Rules were technical in nature. Thus, the Board determined that 
the prior notice and comment requirements of the Administrative 
Procedure Act, 5 U.S.C. 553(b), did not apply to the rule. Because no 
notice of proposed rulemaking is required, these regulations are not a 
``rule'' as defined by the Regulatory Flexibility Act, 5 U.S.C. 601(2), 
and no initial or final regulatory flexibility analysis is required.

List of Subjects in 12 CFR Part 261

    Administrative practice and procedure, Confidential business 
information, Freedom of information, Reporting and recordkeeping 
requirements.

Authority and Issuance

    For the reasons stated above, the Board of Governors of the Federal 
Reserve System adopts the interim final rule published on December 27, 
2016, at 81 FR 94932, as final with the following change:

PART 261--RULES REGARDING AVAILABILITY OF INFORMATION

0
1. The authority citation for part 261 continues to read as follows:

    Authority: 5 U.S.C. 552; 12 U.S.C. 248(i) and (k), 321 et seq., 
611 et seq., 1442, 1467a, 1817(a)(2)(A), 1817(a)(8), 1818(u) and 
(v), 1821(o), 1821(t), 1830, 1844, 1951 et seq., 2601, 2801 et seq., 
2901 et seq., 3101 et seq., 3401 et seq.; 15 U.S.C. 77uuu(b), 
78q(c)(3); 29 U.S.C. 1204; 31 U.S.C. 5301 et seq.; 42 U.S.C. 3601; 
44 U.S.C. 3510.


0
2. In Sec.  261.13 paragraph (i)(4) is revised to read as follows:


Sec.  261.13  Processing requests.

* * * * *
    (i) * * *
    (4) The Board shall make a determination regarding any appeal 
within 20 working days of actual receipt of the appeal by the Freedom 
of Information Office. If an adverse determination is upheld on appeal, 
in whole or in part, the determination letter shall notify the 
appealing party of the right to seek judicial review and of the 
availability of dispute resolution services from the Office of 
Government Information Services as a nonexclusive alternative to 
litigation.
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, October 19, 2017.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017-23095 Filed 10-24-17; 8:45 am]
 BILLING CODE P

49286 Federal Register / Vol. 82, No. 205 / Wednesday, October 25, 2017 / Rules and Regulations

§ 3560.302 Accounting, bookkeeping, combined Federal financial assistance Dated: September 28, 2017.
budgeting, and financial management must include an independent auditor’s Richard A. Davis,
systems. report that includes, financial Acting Administrator, Rural Housing Service.
(a) General. Borrowers must establish statements and notes to the financial [FR Doc. 2017–23082 Filed 10–24–17; 8:45 am]
the accounting, bookkeeping, budgeting statements, supplemental information BILLING CODE 3410–XV–P
and financial management procedures containing Agency approved forms for
necessary to conduct housing project project budgets and borrower balance
operations in a financially safe and sheets, a report on internal control over
sound manner. Borrowers must FEDERAL RESERVE SYSTEM
financial reporting and on compliance
maintain records in a manner suitable and other matters based on an audit of 12 CFR Part 261
for an audit, and must be able to report financial statements in accordance with
accurate operational results to the Government Auditing Standards; a [Docket No. R–1556]
Agency from these accounts and report on compliance for each major RIN 7100–AE65
records. program and internal control over
(b) * * * compliance (if applicable). Federal Rules Regarding Availability of
(1) Borrowers are required to use the Financial Assistance is defined in Information
accrual method of accounting in accordance with 2 CFR 200.40.
preparing annual financial reports, as AGENCY: Board of Governors of the
identified in § 3560.308. (2) Non-profit borrowers that receive Federal Reserve System (‘‘Board’’).
(2) Borrowers must describe their $750,000 or more in combined Federal ACTION: Final rule.
accounting, bookkeeping, budget financial assistance must meet the audit
preparation, and financial reporting requirements set forth by OMB, Uniform SUMMARY: The Board is finalizing its
procedures in their management plan. Administrative Requirements, Cost interim final rule amending its
Principles, and Audit Requirements for regulations for processing requests
* * * * *
Federal Awards, found at 2 CFR parts under the Freedom of Information Act
(e) * * *
(1) Borrowers must retain all housing 200 and 400. Borrowers must provide a (‘‘FOIA’’) pursuant to the FOIA
project financial records, books, and copy of this audit to RHS in compliance Improvement Act of 2016 (the ‘‘Act’’).
supporting material for at least three with these financial reporting The amendments clarify and update
years after the issuance of their financial requirements. procedures for requesting information
reports. Upon request, these materials (3) Non-profit borrowers that receive from the Board, extend the deadline for
will immediately be made available to less than $750,000, and for-profit administrative appeals, and add
the Agency, its representatives, the borrowers that receive less than information on dispute resolution
USDA Office of Inspector General (OIG), $500,000in combined Federal financial services. The interim final rule became
or the Government Accountability assistance will submit annual owner effective on December 27, 2016. This
Office (GAO). certified prescribed forms on the accrual rulemaking finalizes the interim rule
method of accounting in accordance with minor edits.
* * * * *
with the Statements on Standards for DATES: This final rule is effective on
■ 5. Amend § 3560.303 by revising
Accounting and Review Services November 24, 2017.
paragraph (b)(1)(vi)(Q)to read as follows:
promulgated by the Accounting and FOR FURTHER INFORMATION CONTACT:
§ 3560.303 Housing project budgets. Review Services Committee of the Katherine Wheatley, Associate General
* * * * * American Institute of Certified Public Counsel, (202) 452–3779, or Misty
(b) * * * Accountants (AICPA). Borrowers may Mirpuri, Counsel, (202) 452–2597,
(1) * * * use a CPA to prepare this compilation Board of Governors of the Federal
(vi) * * * report of the prescribed forms. Reserve System, 20th and C Streets
(Q) Professional service contracts (b) Performance standards. All NW., Washington, DC 20551. Users of
(audits, owner-certified submissions in Borrowers must certify that the housing telecommunications device for the
accordance with § 3560.308(a)(2), tax meets the performance standards below: hearing impaired, please call (202) 263–
returns, energy audits, utility 4869.
* * * * *
allowances, architectural, construction, SUPPLEMENTARY INFORMATION:
rehabilitation and inspection contracts, (8) There have been no changes in
etc.) project ownership other than those I. Overview of Final Rule
approved by the Agency and identified On December 27, 2016, the Board
* * * * *
in the certification. published an interim final rule 1
■ 6. Amend § 3560.308 by:
■ a. Revising paragraph (a).
(9) Real estate taxes are paid in amending its existing Rules found at 12
■ b. Removing paragraph (b). accordance with state and/or local CFR part 261, in order to comply with
■ c. Redesignating paragraphs (c) and requirements and are current. the statutory changes required by the
(d) as (b) and (c) respectively. (10) Replacement Reserve accounts FOIA Improvement Act of 2016
■ d. Revising the newly redesignated have been used for only authorized (‘‘Improvement Act’’).2 Amendments to
paragraph (b) introductory text. purposes. the Rules adopted statutory exemptions
■ e. Adding paragraphs (b)(8),(b)(9), and and exceptions as required by the
(c) * * *
(b)(10). Improvement Act. The interim final rule
■ f. Revising the newly redesignated (1) Non-profit and public borrower
entities subject to OMB Uniform became effective on December 27, 2016,
nlaroche on DSK9F9SC42PROD with RULES

paragraph (c)(1). and the Board accepted comments
Guidance: Cost Principles, Audit, and
The revisions and additions read as through February 27, 2017. The Board is
Administrative Requirements for
follows: finalizing the interim rule with minor
Federal Awards, must submit audits in
§ 3560.308 Annual financial reports. accordance with 2 CFR parts 200 and 1 81FR 94932 (Dec. 27, 2016).
(a) General. (1) For-profit borrowers 400. 2 Public Law 114–185, 130 Stat. 538 (enacted June
that receive $500,000 or more in * * * * * 30, 2016).

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Federal Register / Vol. 82, No. 205 / Wednesday, October 25, 2017 / Rules and Regulations 49287

changes to paragraph 261.13(i)(4) in III. Regulatory Requirements By order of the Board of Governors of the
response to a public comment. Federal Reserve System, October 19, 2017.
As the Board noted in its interim rule, Ann E. Misback,
II. Summary of Public Comments and Congress required that the substantive
Secretary of the Board.
Final Rule changes to the Board’s Rules under the
[FR Doc. 2017–23095 Filed 10–24–17; 8:45 am]
Improvement Act become effective by
Interested persons were afforded the December 27, 2016, and the other BILLING CODE P

opportunity to participate in the amendments to the Board’s Rules were
rulemaking process through submission technical in nature. Thus, the Board
of written comments on the interim determined that the prior notice and ENVIRONMENTAL PROTECTION
final rule during the open comment comment requirements of the AGENCY
period. The Board is adopting a minor Administrative Procedure Act, 5 U.S.C.
revision to the interim final rule in 553(b), did not apply to the rule. 40 CFR Part 770
response to a comment from the Office Because no notice of proposed [EPA–HQ–OPPT–2017–0245; FRL–9962–84]
of Government Information Services rulemaking is required, these RIN 2070–AK36
within the National Archives and regulations are not a ‘‘rule’’ as defined
Records Administration (‘‘OGIS’’).3 by the Regulatory Flexibility Act, 5 Voluntary Consensus Standards
OGIS asked the Board to revise U.S.C. 601(2), and no initial or final Update; Formaldehyde Emission
section 261.13(i)(4) of the Rules to regulatory flexibility analysis is Standards for Composite Wood
required. Products
require that a determination letter on an
appeal inform appellants of the List of Subjects in 12 CFR Part 261 AGENCY: Environmental Protection
availability of OGIS’s dispute resolution Agency (EPA).
Administrative practice and
services. Although not required by the ACTION: Direct final rule.
procedure, Confidential business
FOIA statute, this change is consistent information, Freedom of information,
with guidance issued by the Department Reporting and recordkeeping SUMMARY: EPA is taking direct final
of Justice’s Office of Information Policy. requirements. action on a revision to the formaldehyde
Accordingly, the Board has determined standards for composite wood products
to edit the language in paragraph (i)(4) Authority and Issuance final rule, published in the Federal
of section 261.13 to notify an appealing For the reasons stated above, the Register on December 12, 2016. The
party of the availability of OGIS’s Board of Governors of the Federal revision will update multiple voluntary
dispute resolution services as a Reserve System adopts the interim final consensus standards that have been
nonexclusive alternative to litigation. rule published on December 27, 2016, at updated, superseded, or withdrawn
81 FR 94932, as final with the following since publication of the notices of
The Board has determined not to
change: proposed rulemaking on June 10, 2013
adopt two other suggestions by OGIS.
and will amend an existing regulatory
OGIS’s proposed amendment would add
PART 261—RULES REGARDING provision regarding the correlation of
a statement that ‘‘[d]ispute resolution is
AVAILABILITY OF INFORMATION quality control test methods.
a voluntary process.’’ This sentence
DATES: This final rule is effective on
appears to be unnecessary and repetitive
■ 1. The authority citation for part 261 December 11, 2017 without further
given that the Board is already advising
continues to read as follows: notice, unless EPA receives relevant
appellants that dispute resolution
services are available as a ‘‘nonexclusive Authority: 5 U.S.C. 552; 12 U.S.C. 248(i) adverse comment by November 9, 2017.
alternative to litigation.’’ OGIS also and (k), 321 et seq., 611 et seq., 1442, 1467a, If EPA receives adverse comment, the
1817(a)(2)(A), 1817(a)(8), 1818(u) and (v), Agency will publish a timely
proposed language stating that the
1821(o), 1821(t), 1830, 1844, 1951 et seq., withdrawal in the Federal Register
Board will ‘‘actively engage as a partner 2601, 2801 et seq., 2901 et seq., 3101 et seq., informing the public that the rule will
to the process in an attempt to resolve 3401 et seq.; 15 U.S.C. 77uuu(b), 78q(c)(3); 29 not take effect. The incorporation by
the dispute’’ if the Board participates in U.S.C. 1204; 31 U.S.C. 5301 et seq.; 42 U.S.C. reference of certain publications listed
the OGIS dispute resolution process. 3601; 44 U.S.C. 3510.
in the regulations is approved by the
Although active engagement in
■ 2. In § 261.13 paragraph (i)(4) is Director of the Federal Register as of
attempting to resolve a FOIA dispute is
revised to read as follows: December 11, 2017.
of course not unreasonable, the
ADDRESSES: The docket for this action,
proposed sentence could create § 261.13 Processing requests.
additional legal obligations not required identified by docket identification (ID)
* * * * * number EPA–HQ–OPPT–2017–0245, is
under the FOIA. Accordingly, aside (i) * * *
from adding in language regarding the available at http://www.regulations.gov
(4) The Board shall make a or at the Office of Pollution Prevention
availability of OGIS’s dispute resolution determination regarding any appeal and Toxics Docket (OPPT Docket),
services as a nonexclusive alternative to within 20 working days of actual receipt Environmental Protection Agency
litigation, the Board is adopting section of the appeal by the Freedom of Docket Center (EPA/DC), West William
261.13(i)(4) in the final rule without any Information Office. If an adverse Jefferson Clinton Bldg., Rm. 3334, 1301
further change. determination is upheld on appeal, in Constitution Ave. NW., Washington,
whole or in part, the determination DC. The Public Reading Room is open
3 The Board received a second comment
letter shall notify the appealing party of from 8:30 a.m. to 4:30 p.m., Monday
nlaroche on DSK9F9SC42PROD with RULES

requesting that it amend the rule in a manner
unrelated to the amendments required by the
the right to seek judicial review and of through Friday, excluding legal
Improvement Act. While the Board intends to make the availability of dispute resolution holidays. The telephone number for the
more extensive amendments to its FOIA Rule at a services from the Office of Government Public Reading Room is (202) 566–1744,
later time, the interim final rule only addressed the Information Services as a nonexclusive
matters required by the Improvement Act, and
and the telephone number for the OPPT
further changes to the Rule will be preceded by a
alternative to litigation. Docket is (202) 566–0280. Please review
request for public comment. * * * * * the visitor instructions and additional

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Document Created: 2017-10-25 01:16:39
Document Modified: 2017-10-25 01:16:39

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 November 24, 2017.
Contact		Katherine Wheatley, Associate General Counsel, (202) 452-3779, or Misty Mirpuri, Counsel, (202) 452-2597, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. Users of telecommunications device for the hearing impaired, please call (202) 263-4869.
FR Citation		82 FR 49286
RIN Number		7100-AE65
CFR Associated		Administrative Practice and Procedure; Confidential Business Information; Freedom of Information and Reporting and Recordkeeping Requirements