Unknown. Final rule; staff commentary

2,809 words·~13 min read·/register/2010/08/04/2010-19101·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2010-08-04.xml --- 75 149 Wednesday, August 4, 2010 Contents Agriculture Agriculture Department See Animal and Plant Health Inspection Service See Food and Nutrition Service See Forest Service See National Institute of Food and Agriculture See Natural Resources Conservation Service See Rural Business-Cooperative Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 46899 2010-19134 Animal Animal and Plant Health Inspection Service PROPOSED RULES Lacey Act Implementation Plan;

Definitions for Exempt and Regulated Articles, 46859-46861 2010-19098 NOTICES Changes to Treatments for Sweet Cherries from Australia and Irradiation Dose for Mediterranean Fruit Fly, 46901-46902 2010-19135 Centers Centers for Disease Control and Prevention NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 46942-46943 2010-19108 Meetings: Disease, Disability, and Injury Prevention and Control Special Emphasis Panel, 46952 2010-19157 Centers Centers for Medicare & Medicaid Services NOTICES Meetings:

Medicare Program; Listening Session Regarding Confidential Feedback Reports, etc., 46948-46949 2010-19128 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office Drug Drug Enforcement Administration NOTICES Manufacturer of Controlled Substances; Applications: Johnson Matthey Pharma Services, North Andover, MA, 47029 2010-19078 Education Education Department NOTICES Meetings:

National Assessment Governing Board; Correction, 46918 2010-19107 Energy Energy Department See Federal Energy Regulatory Commission EPA Environmental Protection Agency RULES Pesticide Tolerances: Halosulfuron-methyl, 46847-46854 2010-19053 Revisions to the California State Implementation Plan: South Coast Air Quality Management District, 46845-46847 2010-19057 PROPOSED RULES Approvals and Promulgations of Implementation Plans: Extension of Attainment Date for Charlotte-Gastonia-Rock Hill, NC-SC, etc., 46881-46884 2010-19141 Revisions to the California State Implementation Plan:

South Coast Air Quality Management District, 46880-46881 2010-19056 NOTICES Nominations to FIFRA Scientific Advisory Panel; Request for Comments, 46919-46924 2010-18900 Receipt of Pesticide Petitions: Residues of Pesticide Chemicals in or on Various Commodities, 46924-46926 2010-18899 Receipt of Requests to Voluntarily Cancel Certain Pesticide Registrations, 46926-46936 2010-18898 2010-18902 FAA Federal Aviation Administration RULES Special Conditions: Bombardier Inc. Model CL-600-2E25 Series Airplane;

Passenger Seats with Non-Traditional, Large, Non-Metallic Panels, 46840-46843 2010-19072 Embraer ERJ 190 100 Series Airplane Seats with Non-Traditional, Large, Non-Metallic Panels, 46838-46840 2010-19071 PROPOSED RULES Airworthiness Directives: Airbus Model A318-111 and A318-112 Airplanes and Model A319, A320, and A321 Series Airplanes, 46873-46877 2010-19144 Airbus Model A330-200 and -300 Series Airplanes, 46861-46864 2010-19179 Boeing Co. Model 747 and Model 767 Airplanes Equipped with General Electric Model CF6-80C2 or CF6-80A Series Engines, 46868-46873 2010-19154 Short Brothers PLC Model SD3 Airplanes, 46864-46868 2010-19172 FCC Federal Communications Commission RULES Amateur Radio Service Communications During Government Disaster Drills;

Amendments, 46854-46858 2010-19198 PROPOSED RULES Review of Personal Radio Services Rules, 47142-47169 2010-18116 Satellite Television Extension and Localism Act of 2010, 46885-46894 2010-19294 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 46936-46937 2010-19124 2010-19125 Federal Energy Federal Energy Regulatory Commission NOTICES Applications for License Amendments: Gresham Municipal Utilities, 46918-46919 2010-19087 Filings: MidAmerican Energy Co., 46919 2010-19086 Federal Highway Federal Highway Administration NOTICES Environmental Impact Statements;

Availability, etc.: Warren County IA; Rescind Notice, 47059 2010-19113 FMC Federal Maritime Commission NOTICES Agreements Filed, 46938 2010-19147 Ocean Transportation Intermediary License; Applicants, 46938-46939 2010-19152 Ocean Transportation Intermediary Licenses; Revocations, 46939-46940 2010-19145 Federal Reserve Federal Reserve System RULES Truth in Lending, 46837-46838 2010-19101 NOTICES Changes in Bank Control: Acquisitions of Shares of Banks or Bank Holding Companies, 46937 2010-19070 Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 46937-46938 2010-19106 Proposals to Engage in Permissible Nonbanking Activities, etc., 46938 2010-19069 FTC Federal Trade Commission NOTICES Proposed Consent Agreements:

Nufarm Limited, 46940-46942 2010-19079 Fish Fish and Wildlife Service PROPOSED RULES Endangered and Threatened Wildlife and Plants: 90-Day Finding on Petition to List Mexican Gray Wolf as Endangered Subspecies with Critical Habitat, 46894-46898 2010-19199 NOTICES Endangered and Threatened Wildlife and Plants; Initiation of 5-Year Reviews of Five Listed Species: Delmarva Peninsula fox squirrel, northeastern bulrush, Furbish lousewort, Chittenango ovate amber snail, and Virginia round-leaf birch, 47025-47026 2010-19109 Food Food and Drug Administration NOTICES Prescription Drug User Fee Rates for Fiscal Year 2011, 46952-46957 2010-19116 Food Food and Nutrition Service NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: In-Depth Case Studies of Advanced Modernization Initiatives, 46899-46901 2010-19074 Foreign Foreign-Trade Zones Board NOTICES Minor Adjustments to Optional Alternative Site Framework, 46916 2010-19139 Site Renumbering: Foreign-Trade Zone 153, San Diego, CA, 46917-46918 2010-19138 Forest Forest Service NOTICES Meetings: Forestry Research Advisory Council, 46903 2010-19142 Ketchikan Resource Advisory Committee, 46902 2010-19042 West Virginia Resource Advisory Committee, 46902-46903 2010-19115 Health Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration Health Health Resources and Services Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 46944-46945 2010-19121 Meetings: Advisory Commission on Childhood Vaccines, 46952 2010-19120 Secretary's Advisory Committee on Heritable Disorders in Newborns and Children, 46947-46948 2010-19119 Housing Housing and Urban Development Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Research Plan for an Evaluation of the Section 202 Demonstration Planning Grant Program, 46957-46958 2010-19081 Proposed Fair Market Rents for the Fiscal Year 2011 Housing Choice Voucher Program, etc., 46958-47024 2010-19084 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See National Park Service See Surface Mining Reclamation and Enforcement Office IRS Internal Revenue Service RULES Excise Taxes on Prohibited Tax Shelter Transactions and Related Disclosure Requirements, etc.;

Corrections, 46844-46845 2010-19097 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 47059-47060 2010-19085 2010-19096 Meetings: Area 1 Taxpayer Advocacy Panel, 47060-47061 2010-19176 Area 2 Taxpayer Advocacy Panel, 47062 2010-19177 Area 3 Taxpayer Advocacy Panel, 47061 2010-19175 Area 5 Taxpayer Advocacy Panel, 47061 2010-19181 Area 7 Taxpayer Advocacy Panel, 47061 2010-19178 Taxpayer Advocacy Panel Taxpayer Assistance Center Committee, 47062 2010-19183 International International Trade Administration NOTICES Amended Final Determinations of Sales at Less Than Fair Value:

Certain Woven Electric Blankets from People's Republic of China, 46911-46912 2010-19137 Application(s) for Duty-Free Entry of Scientific Instruments, 46912 2010-19185 Final Results of Changed Circumstances Reviews: Certain New Pneumatic Off-the-Road Tires from People's Republic of China, 46914-46916 2010-19196 Partial Rescissions of Antidumping Duty Administrative Reviews: New Pneumatic Off-the-Road Tires from People's Republic of China, 46917 2010-19191 International International Trade Commission NOTICES Investigations:

Certain Devices Having Elastomeric Gel and Components Thereof, 47027-47028 2010-19105 Justice Justice Department See Drug Enforcement Administration NOTICES Lodging of Consent Decrees under CERCLA, 47028-47029 2010-19102 Labor Labor Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 47029 2010-19112 Land Land Management Bureau NOTICES Filing of Plats of Survey: Montana, 47026 2010-19159 National Archives National Archives and Records Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 47029-47030 2010-19213 National Credit National Credit Union Administration NOTICES Meetings; Sunshine Act, 47030 2010-19208 National Institute National Institute of Food and Agriculture NOTICES Solicitation of Input from Stakeholders: Assessments Focused on Improving Food Aid and Providing Safe Water, 46909-46910 2010-19132 NIH National Institutes of Health NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 46945 2010-19158 Assessing the Long-Term Impacts of the John E.

Fogarty International Center Research and Training Programs, 46946-46947 2010-19160 Multi-Ethnic Study of Atherosclerosis Event Surveillance, 46945-46946 2010-19164 Meetings: Center for Scientific Review, 46950-46951 2010-19163 2010-19167 National Eye Institute, 46951-46952 2010-19162 National Human Genome Research Institute, 46951 2010-19165 National Institute of Environmental Health Sciences, 46950 2010-19168 National Institute on Alcohol Abuse and Alcoholism, 46949 2010-19169 NOAA National Oceanic and Atmospheric Administration NOTICES Draft 2010 Marine Mammal Stock Assessment Reports, 46912-46914 2010-19143 National Park National Park Service NOTICES Meetings:

Cedar Creek and Belle Grove National Historical Park Advisory Commission, 47026 2010-19076 Denali National Park and Preserve Aircraft Overflights Advisory Council, Alaska Region, 47027 2010-19077 National Science National Science Foundation NOTICES Meetings; Sunshine Act, 47030 2010-19338 NRCS Natural Resources Conservation Service NOTICES Proposed Changes to the National Handbook of Conservation Practices, 46903-46904 2010-19133 Patent Patent and Trademark Office NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 46910-46911 2010-19103 Personnel Personnel Management Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 47030-47031 2010-19089 2010-19091 Excepted Service, 47031-47033 2010-19093 Meetings: National Council on Federal Labor-Management Relations, 47033 2010-19088 Postal Postal Regulatory Commission NOTICES New Postal Products, 47033-47034 2010-19104 Rural Rural Business-Cooperative Service NOTICES Request For Proposals:

Fiscal Year 2010 Funding Opportunity for Research on the Economic Impact of Cooperatives (REIC), 46904-46909 2010-19155 SEC Securities and Exchange Commission PROPOSED RULES Mutual Fund Distribution Fees; Confirmations, 47064-47139 2010-18305 NOTICES Applications for Deregistration under Section 8(f) of 1940 Investment Company Act, 47036-47038 2010-19110 Meetings; Sunshine Act, 47038 2010-19227 Self-Regulatory Organizations; Proposed Rule Changes: BATS Exchange, Inc., 47043-47045 2010-19221 Chicago Board Options Exchange, Inc., 47041-47043 2010-19222 EDGA Exchange, Inc.., 47056-47057 2010-19218 EDGX Exchange, Inc., 47040-47041 2010-19215 International Securities Exchange, LLC, 47054-47056 2010-19220 NASDAQ Stock Market LLC, 47053-47054, 47057-47059 2010-19111 2010-19219 National Stock Exchange, Inc., 47049-47051 2010-19225 NYSE Arca, Inc., 47045-47049, 47051-47053 2010-19083 2010-19223 2010-19224 OneChicago, 47039-47040 2010-19217 SBA Small Business Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 47034-47035 2010-19127 Disaster Declarations: Iowa, 47035-47036 2010-19149 Kentucky, 47036 2010-19150 South Dakota, 47035 2010-19148 Small Business Size Standards: Waiver of Nonmanufacturer Rule, 47036 2010-19126 State State Department RULES Amendment to the International Traffic in Arms Regulations: Commodity Jurisdiction, 46843-46844 2010-19136 Substance Substance Abuse and Mental Health Services Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 46943-46944 2010-19118 Surface Surface Mining Reclamation and Enforcement Office PROPOSED RULES Pennsylvania Regulatory Program, 46877-46880 2010-19017 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 47024-47025 2010-18348 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration Treasury Treasury Department See Internal Revenue Service Veterans Veterans Affairs Department NOTICES Meetings:

Advisory Committee on Disability Compensation, 47062 2010-19226 Separate Parts In This Issue Part II Securities and Exchange Commission, 47064-47139 2010-18305 Part III Federal Communications Commission, 47142-47169 2010-18116 Reader Aids Consult the Reader Aids section at the end of this page for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 75 149 Wednesday, August 4, 2010 Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 226 [Regulation Z;

Docket No. R-1389] Truth in Lending AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule; staff commentary. SUMMARY: The Board is publishing a final rule amending the staff commentary that interprets the requirements of Regulation Z (Truth in Lending). The Board is required to adjust annually the dollar amount that triggers requirements for certain home mortgage loans bearing fees above a certain amount. The Home Ownership and Equity Protection Act of 1994 (HOEPA) sets forth rules for home-secured loans in which the total points and fees payable by the consumer at or before loan consummation exceed the greater of $400 or 8 percent of the total loan amount.

In keeping with the statute, the Board has annually adjusted the $400 amount based on the annual percentage change reflected in the Consumer Price Index as reported on June 1. The adjusted dollar amount for 2011 is $592. DATES: *Effective Date:* January 1, 2011. FOR FURTHER INFORMATION CONTACT: Dana Miller, Senior Attorney, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at

(202)452-3667. For the users of Telecommunications Device for the Deaf (“TDD”) only, contact

(202)263-4869. SUPPLEMENTARY INFORMATION: I. Background The Truth in Lending Act (TILA; 15 U.S.C. 1601-1666j) requires creditors to disclose credit terms and the cost of consumer credit as an annual percentage rate. The act requires additional disclosures for loans secured by a consumer's home, and permits consumers to cancel certain transactions that involve their principal dwelling. TILA is implemented by the Board's Regulation Z (12 CFR part 226). The Board's official staff commentary (12 CFR part 226 (Supp. I)) interprets the regulation, and provides guidance to creditors in applying the regulation to specific transactions. In 1995, the Board published amendments to Regulation Z implementing HOEPA, contained in the Riegle Community Development and Regulatory Improvement Act of 1994, Public Law 103-325, 108 Stat. 2160 (60 FR 15463). These amendments, contained in §§ 226.32 and 226.34 of the regulation, impose substantive limitations and additional disclosure requirements on certain closed-end home mortgage loans bearing rates or fees above a certain percentage or amount. As enacted, the statute requires creditors to comply with the HOEPA requirements if the total points and fees payable by the consumer at or before loan consummation exceed the greater of $400 or 8 percent of the total loan amount. TILA and Regulation Z provide that the $400 figure shall be adjusted annually on January 1 by the annual percentage change in the Consumer Price Index

(CPI)that was reported on the preceding June 1. 15 U.S.C. 1602(aa)(3) and 12 CFR 226.32(a)(1)(ii). The Board adjusted the $400 amount to $579 for the year 2010. The Bureau of Labor Statistics publishes consumer-based indices monthly, but does not report a CPI change on June 1; adjustments are reported in the middle of each month. The Board uses the CPI-U index, which is based on all urban consumers and represents approximately 87 percent of the U.S. population, as the index for adjusting the $400 dollar figure. The adjustment to the CPI-U index reported by the Bureau of Labor Statistics on May 19, 2010, was the CPI-U index in effect on June 1, and reflects the percentage change from April 2009 to April 2010. The adjustment to the $400 figure below reflects a 2.2 percent increase in the CPI-U index for this period and is rounded to whole dollars for ease of compliance. The fee trigger being adjusted in this **Federal Register** notice pursuant to TILA section 103(aa) is used in determining whether a loan is covered by section 226.32 of Regulation Z. Such loans have generally been known as “HOEPA loans.” In July 2008, the Board revised Regulation Z to adopt additional protections for “higher-priced” loans, using its authority under TILA section 129(l)(2). Those revisions define a class of dwelling-secured transactions, described in section 226.35 of Regulation Z, using a threshold based on average market rates that the Board publishes on a regular basis. The adjustment published today does not affect the triggers adopted in July 2008 for higher-priced loans. On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Reform Act”) was enacted into law. 1 Section 1431 of the Reform Act revises the statutory fee trigger for HOEPA loans. The amendments made by Section 1431 of the Reform Act will be implemented in a future rulemaking. Accordingly, the adjustment to the fee trigger that is being published today will become effective on January 1, 2011 and will apply for one year, or until final rules under the Reform Act become effective, whichever is earlier. 1 Public Law 111-203, 124 Stat. 1376 (2010). II. Adjustment and Commentary Revision Effective January 1, 2011, for purposes of determining whether a home mortgage transaction is covered by 12 CFR 226.32 (based on the total points and fees payable by the consumer at or before loan consummation), a loan is covered if the points and fees exceed the greater of $592 or 8 percent of the total loan amount. Comment 32(a)(1)(ii)-2, which lists the adjustments for each year, is amended to reflect the dollar adjustment for 2011. Because the timing and method of the adjustment are set by statute, the Board finds that notice and public comment on the change are unnecessary. III. Regulatory Flexibility Analysis The Board certifies that this amendment to Regulation Z will not have a significant economic impact on a substantial number of small entities. The only change is to increase the threshold for transactions requiring HOEPA disclosures. This change is mandated by statute. List of Subjects in 12 CFR Part 226 Advertising, Federal Reserve System, Mortgages, Reporting and recordkeeping requirements, Truth in lending. For the reasons set forth in the preamble, the Board amends Regulation Z, 12 CFR part 226, as set forth below: PART 226—TRUTH IN LENDING (REGULATION Z) 1. The authority citation for part 226 continues to read as follows: Authority: 12 U.S.C. 3806; 15 U.S.C. 1604 and 1637(c)(5). 2. In Supplement I to Part 226, under *Section 226.32—Requirements for Certain Closed-End Home Mortgages,* under Paragraph 32(a)(1)(ii), paragraph 2.xvi. is added. Supplement I to Part 226—Official Staff Interpretations Subpart E—Special Rules for Certain Home Mortgage Transactions Section 226.32—Requirements for Certain Closed-End Home Mortgages 32(a) Coverage Paragraph 32(a)(1)(ii) 2. *Annual adjustment of $400 amount.* xvi. For 2011, $592, reflecting a 2.2 percent increase in the CPI-U from June 2009 to June 2010, rounded to the nearest whole dollar. By order of the Board of Governors of the Federal Reserve System, acting through the Director of the Division of Consumer and Community Affairs under delegated authority, July 29, 2010. Jennifer J. Johnson, Secretary of the Board. [FR Doc. 2010-19101 Filed 8-3-10; 8:45 am]

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