82 FR 55495 - Rules Regarding Delegation of Authority

FEDERAL RESERVE SYSTEM

Federal Register Volume 82, Issue 224 (November 22, 2017)

Page Range		55495-55496
FR Document		2017-24052

The Board is amending its Rules Regarding Delegation of Authority, in connection with the amendment to the Board's Rules of Organization (published elsewhere in this issue of the Federal Register), to provide a modified quorum procedure during exigent circumstances.

Federal Register, Volume 82 Issue 224 (Wednesday, November 22, 2017)

[Federal Register Volume 82, Number 224 (Wednesday, November 22, 2017)]
[Rules and Regulations]
[Pages 55495-55496]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24052]


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FEDERAL RESERVE SYSTEM

12 CFR Part 265

[Docket No. R-1578]
RIN 7100 AE-85


Rules Regarding Delegation of Authority

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

ACTION: Final rule.

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SUMMARY: The Board is amending its Rules Regarding Delegation of 
Authority, in connection with the amendment to the Board's Rules of 
Organization (published elsewhere in this issue of the Federal 
Register), to provide a modified quorum procedure during exigent 
circumstances.

DATES: The rule is effective November 22, 2017.

FOR FURTHER INFORMATION CONTACT: Laurie Schaffer, Associate General 
Counsel, (202) 452-2272, or Daniel Hickman, Counsel, (202) 973-7432, 
Legal Division, Board of Governors of the Federal Reserve System, 20th 
Street and Constitution Avenue NW., Washington, DC 20551. For the 
hearing impaired only, Telecommunication Device for Deaf (TDD) users 
may contact (202) 263-4869.

SUPPLEMENTARY INFORMATION: The Board consists of up to seven members 
appointed by the President, by and with the advice and consent of the 
Senate, as provided in the Federal Reserve Act (Act).\1\ The Act does 
not define a quorum of the Board, and authorizes the Board to make all 
rules and regulations necessary to enable the Board effectively to 
perform its duties and functions.\2\ For many years, the Board defined 
a quorum to be a majority (four members) of its authorized strength of 
seven members. In 2003, the Board revised its definition of quorum of 
the Board to be a majority of the Board members currently in office, 
unless there are five members in office, in which case a quorum would 
be four members.\3\ This modification allowed the Board to function 
with fewer than four members in office and enhanced the Board's ability 
to function during emergencies.
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    \1\ See 12 U.S.C. 241.
    \2\ See 12 U.S.C. 248(i).
    \3\ 66 FR 37686 (Jul 19, 2001), as amended at 68 FR 24743 (May 
8, 2003).
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    Over the past decade, the Board has had to operate with fewer than 
five members on several occasions.\4\ Based on this experience, the 
Board has determined that substantial vacancies present administrative 
and logistical challenges that make it difficult to conduct routine 
business and efficiently manage operations, particularly with the 
Board's traditional reliance on a 3-member committee structure. In 
light of these considerations, the Board has reconsidered its quorum 
practice and decided to amend its definition of a quorum \5\ to provide 
that a quorum of the Board is four members, unless there are three or 
fewer members in office, in which case a quorum would be all members in 
office. This revised definition will facilitate the Board's ability to 
continue to function efficiently during periods of substantial 
vacancies on the Board. This revision does not alter the number of 
Board members required to constitute a quorum or the functioning of the 
Board's committee structure in normal operating environments (that is, 
when five or more members are in office).
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    \4\ Since the current structure of the Board was established in 
1936, the Board has had fewer than five members on only a few 
occasions for a short period of time and the Board has never had 
fewer than four members.
    \5\ In a document published elsewhere in this issue of the 
Federal Register.
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    Since this revision may make it more difficult to convene a quorum 
of the Board under exigent circumstances, the Board also has added a 
modified definition of quorum providing that, in an emergency 
situation, a quorum of the Board consists of a majority of the Board 
members in office.\6\ An emergency situation is defined as a situation 
when action on a matter is necessary to prevent, correct, or mitigate 
serious harm to the economy or the stability of the financial system, 
and action is required before the full Board can convene. As part of 
this final rule, the Board is adding a provision to its regulations 
specifying that the Chair (or the Vice Chair, if the Chair is 
unavailable) would be authorized to determine when an emergency 
situation exists.
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    \6\ In a document published elsewhere in this issue of the 
Federal Register.
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    The revised rule relates solely to the internal procedure of the 
Board, and, accordingly, the public notice, public comment and delayed 
effective date provisions of the Administrative Procedure Act do not 
apply. See 5 U.S.C. 553(b) and (d). Because public notice and comment 
is not required, the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
also does not apply to this action.

List of Subjects in 12 CFR Part 265

    Authority delegations (Government agencies), Banks, banking.

Authority and Issuance

    For the reasons set forth in the preamble, the Board amends 12 CFR 
part 265 as follows:

PART 265--RULES REGARDING DELEGATION OF AUTHORITY

0
1. The authority citation of part 265 continues to read as follows:

    Authority: 12 U.S.C. 248(i) and (k).

0
2. Section 265.4(c) is added to read as follows:


Sec.  265.4  Functions delegated to Board members.

* * * * *
    (c) Exigent circumstances. The Chairman is authorized to determine 
when an emergency situation exists for purposes of section 2(b)(2) of 
the Board's Rules of Organization. If the Chairman is unavailable or 
unable to determine that an emergency situation exists, then the Vice 
Chairman is authorized to determine when an emergency situation exists.


[[Page 55496]]


    By order of the Board of Governors of the Federal Reserve 
System, October 31, 2017.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017-24052 Filed 11-21-17; 8:45 am]
BILLING CODE 6210-01-P

Federal Register / Vol. 82, No. 224 / Wednesday, November 22, 2017 / Rules and Regulations 55495

start date that falls within FY 2018 Legal Division, Board of Governors of operating environments (that is, when
(October 1, 2017–September 30, 2018) the Federal Reserve System, 20th Street five or more members are in office).
will be counted against the new cap of and Constitution Avenue NW., Since this revision may make it more
9,998. Counting each CW–1 Washington, DC 20551. For the hearing difficult to convene a quorum of the
nonimmigrant worker in this manner impaired only, Telecommunication Board under exigent circumstances, the
will help ensure that USCIS does not Device for Deaf (TDD) users may contact Board also has added a modified
approve requests that would exceed the (202) 263–4869. definition of quorum providing that, in
cap of 9,998 CW–1 nonimmigrant an emergency situation, a quorum of the
SUPPLEMENTARY INFORMATION: The Board
workers granted such status in FY 2018. Board consists of a majority of the Board
consists of up to seven members
This document does not affect the members in office.6 An emergency
appointed by the President, by and with
current immigration status of foreign situation is defined as a situation when
the advice and consent of the Senate, as
workers who have CW–1 nonimmigrant action on a matter is necessary to
provided in the Federal Reserve Act
status. Such foreign workers, however, prevent, correct, or mitigate serious
(Act).1 The Act does not define a
will be affected by this document when harm to the economy or the stability of
quorum of the Board, and authorizes the
their CNMI employers file: the financial system, and action is
Board to make all rules and regulations
• For an extension of their CW–1 required before the full Board can
necessary to enable the Board effectively
nonimmigrant classification; or convene. As part of this final rule, the
to perform its duties and functions.2 For
• A change of status from another Board is adding a provision to its
many years, the Board defined a quorum
nonimmigrant status to that of CW–1 regulations specifying that the Chair (or
to be a majority (four members) of its
nonimmigrant status. the Vice Chair, if the Chair is
authorized strength of seven members.
This document does not affect the unavailable) would be authorized to
In 2003, the Board revised its definition
status of any individual currently determine when an emergency situation
of quorum of the Board to be a majority
holding CW–2 nonimmigrant status as exists.
of the Board members currently in
the spouse or minor child of a CW–1 The revised rule relates solely to the
office, unless there are five members in
nonimmigrant worker. This document internal procedure of the Board, and,
office, in which case a quorum would be
also does not directly affect the ability accordingly, the public notice, public
four members.3 This modification
of any individual to extend or otherwise comment and delayed effective date
allowed the Board to function with
obtain CW–2 status, as the cap applies provisions of the Administrative
fewer than four members in office and
to CW–1 principals only. This Procedure Act do not apply. See 5
enhanced the Board’s ability to function
document, however, may indirectly U.S.C. 553(b) and (d). Because public
during emergencies.
affect individuals seeking CW–2 status notice and comment is not required, the
since their status depends on the CW– Over the past decade, the Board has Regulatory Flexibility Act (5 U.S.C. 601
1 principal’s ability to obtain or retain had to operate with fewer than five et seq.) also does not apply to this
CW–1 status. members on several occasions.4 Based action.
on this experience, the Board has
Elaine C. Duke, determined that substantial vacancies List of Subjects in 12 CFR Part 265
Acting Secretary of Homeland Security. present administrative and logistical Authority delegations (Government
[FR Doc. 2017–25306 Filed 11–21–17; 8:45 am] challenges that make it difficult to agencies), Banks, banking.
BILLING CODE 9111–97–P conduct routine business and efficiently
manage operations, particularly with the Authority and Issuance
Board’s traditional reliance on a 3- For the reasons set forth in the
FEDERAL RESERVE SYSTEM member committee structure. In light of preamble, the Board amends 12 CFR
these considerations, the Board has part 265 as follows:
12 CFR Part 265 reconsidered its quorum practice and
decided to amend its definition of a PART 265—RULES REGARDING
[Docket No. R–1578]
quorum 5 to provide that a quorum of DELEGATION OF AUTHORITY
RIN 7100 AE–85 the Board is four members, unless there
are three or fewer members in office, in ■ 1. The authority citation of part 265
Rules Regarding Delegation of which case a quorum would be all continues to read as follows:
Authority members in office. This revised Authority: 12 U.S.C. 248(i) and (k).
AGENCY: Board of Governors of the definition will facilitate the Board’s ■ 2. Section 265.4(c) is added to read as
Federal Reserve System (Board). ability to continue to function follows:
ACTION: Final rule.
efficiently during periods of substantial
vacancies on the Board. This revision § 265.4 Functions delegated to Board
members.
SUMMARY: The Board is amending its does not alter the number of Board
Rules Regarding Delegation of members required to constitute a * * * * *
Authority, in connection with the quorum or the functioning of the (c) Exigent circumstances. The
amendment to the Board’s Rules of Board’s committee structure in normal Chairman is authorized to determine
Organization (published elsewhere in when an emergency situation exists for
this issue of the Federal Register), to 1 See 12 U.S.C. 241. purposes of section 2(b)(2) of the
provide a modified quorum procedure 2 See 12 U.S.C. 248(i). Board’s Rules of Organization. If the
during exigent circumstances. 3 66 FR 37686 (Jul 19, 2001), as amended at 68 Chairman is unavailable or unable to
ethrower on DSK3G9T082PROD with RULES

FR 24743 (May 8, 2003). determine that an emergency situation
DATES: The rule is effective November 4 Since the current structure of the Board was
exists, then the Vice Chairman is
22, 2017. established in 1936, the Board has had fewer than
authorized to determine when an
FOR FURTHER INFORMATION CONTACT: five members on only a few occasions for a short
period of time and the Board has never had fewer emergency situation exists.
Laurie Schaffer, Associate General than four members.
Counsel, (202) 452–2272, or Daniel 5 In a document published elsewhere in this issue 6 In a document published elsewhere in this issue

Hickman, Counsel, (202) 973–7432, of the Federal Register. of the Federal Register.

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55496 Federal Register / Vol. 82, No. 224 / Wednesday, November 22, 2017 / Rules and Regulations

By order of the Board of Governors of the to perform its duties and functions.2 For an emergency situation, a quorum of the
Federal Reserve System, October 31, 2017. many years, the Board defined a quorum Board consists of a majority of the Board
Ann E. Misback, to be a majority (four members) of its members in office. An emergency
Secretary of the Board. authorized strength of seven members. situation is defined as a situation when
[FR Doc. 2017–24052 Filed 11–21–17; 8:45 am] In 2003, the Board revised its definition action on a matter is necessary to
BILLING CODE 6210–01–P of a quorum of the Board to be a prevent, correct, or mitigate serious
majority of the Board members currently harm to the economy or the stability of
in office, unless there are five members the financial system, and action is
FEDERAL RESERVE SYSTEM in office, in which case a quorum would required before the full Board can
be four members.3 This modification
convene. The Board is amending its
12 CFR Part 265 allowed the Board to function with
Rules Regarding Delegation of Authority
[Docket No. OP–1578]
fewer than four members in office and
enhanced the Board’s ability to function (12 CFR part 265), published elsewhere
during emergencies. in this Federal Register, to authorize the
Rules of Organization Chair (or the Vice Chair, if the Chair is
Over the past decade, the Board has
AGENCY: Board of Governors of the had to operate with fewer than five unavailable) to determine when an
Federal Reserve System (Board). members on several occasions.4 Based emergency situation exists.
ACTION: Amendment to Rules of on this experience, the Board has The Board has incorporated these
Organization. determined that substantial vacancies revisions into its Rules of Organization
present administrative and logistical and Rules Regarding Delegation of
SUMMARY: The Board has amended its challenges that make it difficult to Authority,5 published elsewhere in this
definition of a quorum of the Board in conduct routine business and efficiently Federal Register. The revisions relate
the Board’s Rules of Organization. The manage operations, particularly with the solely to the internal procedure of the
amendment is designed to facilitate the Board’s traditional reliance on a 3-
Board, and, accordingly, the public
Board’s ability to continue to function member committee structure. In light of
efficiently during periods of substantial notice, public comment and delayed
these considerations, the Board has
vacancies on the Board. The amendment reconsidered its quorum practice and effective date provisions of the
does not alter the number of Board decided to amend its definition of a Administrative Procedure Act do not
members required to constitute a quorum to provide that a quorum of the apply. See 5 U.S.C. 553(b) and (d).
quorum in normal operating Board is four members, unless there are Because public notice and comment is
environments. The amendment also three or fewer members in office, in not required, the Regulatory Flexibility
addresses Board member recusals and which case a quorum would be all Act (5 U.S.C. 601 et seq.) also does not
disqualifications. In addition, the Board members in office. This revised apply to this action.
has provided a modified definition of a definition will facilitate the Board’s
Board of Governors—Rules of
quorum during exigent circumstances. ability to continue to function
Organization
In connection with this modification, efficiently during periods of substantial
the Board is amending its Rules vacancies on the Board. This revision ■ Section 2 paragraph (b) is revised to
Regarding Delegation of Authority, does not alter the number of Board
read as follows:
published elsewhere in this Federal members required to constitute a
Register, to authorize the Chair (or Vice quorum or the functioning of the Section 2 Composition, Location, and
Chair, if the Chair is unavailable) to Board’s committee structure in normal Public Information
determine when an emergency situation operating environments (that is, when * * * * *
exists. five or more members are in office).
Increasing the quorum requirement (b)(1) Quorum. Four Board members
DATES: The amendment to the Board’s
for a four-member and three-member constitutes a quorum of the Board for
Rules of Organization became effective
Board may make it more difficult to purposes of transacting business except
on October 25, 2017.
convene a quorum if a member of the that, if there are three or fewer Board
FOR FURTHER INFORMATION CONTACT:
Board is recused or disqualified from a members in office, then a quorum
Laurie Schaffer, Associate General consists of all Board members currently
particular matter. To address this
Counsel (202) 452–2272, or Daniel
concern, the Board also has amended its in office. If a Board member is recused
Hickman, Counsel (202) 973–7432,
Rules of Organization to clarify that or disqualified from participating in a
Legal Division, Board of Governors of
Board members who are recused or matter, the member shall not be counted
the Federal Reserve System, 20th Street
disqualified from participating in a for purposes of calculating the quorum
and Constitution Avenue NW.,
particular matter will be excluded from for that matter.
Washington, DC 20551. For the hearing
calculations of the quorum requirement
impaired only, Telecommunication (b)(2) Exigent Circumstances. In an
for that matter.
Device for Deaf (TDD) users may contact Since the revisions may make it more emergency situation, a quorum of the
(202) 263–4869. difficult to convene a quorum of the Board consists of a majority of the Board
SUPPLEMENTARY INFORMATION: The Board Board under exigent circumstances, the members in office. An emergency
consists of up to seven members Board also has added a modified situation exists when action on a matter
appointed by the President, by and with definition of quorum providing that, in is necessary to prevent, correct, or
the advice and consent of the Senate, as mitigate serious harm to the economy or
ethrower on DSK3G9T082PROD with RULES

provided in the Federal Reserve Act 2 See 12 U.S.C. 248(i). the stability of the financial system, and
(Act).1 The Act does not define a 3 66 FR 37686 (Jul 19, 2001), as amended at 68 action is required before the full Board
quorum of the Board, and authorizes the FR 24743 (May 8, 2003). can convene.
4 Since the current structure of the Board was
Board to make all rules and regulations
established in 1936, the Board has had fewer than
necessary to enable the Board effectively five members on only a few occasions for a short
5 The Board’s Rules Regarding Delegation of
period of time and the Board has never had fewer
1 See 12 U.S.C. 241. than four members. Authority are codified at 12 CFR part 265.

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Document Created: 2017-11-22 00:49:04
Document Modified: 2017-11-22 00:49:04

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		The rule is effective November 22, 2017.
Contact		Laurie Schaffer, Associate General Counsel, (202) 452-2272, or Daniel Hickman, Counsel, (202) 973-7432, Legal Division, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW., Washington, DC 20551. For the hearing impaired only, Telecommunication Device for Deaf (TDD) users may contact (202) 263-4869.
FR Citation		82 FR 55495
RIN Number		7100 AE85
CFR Associated		Authority Delegations (government Agencies); Banks and Banking