Unknown. Final rule

4,992 words·~23 min read·/register/2011/09/26/2011-24300

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-2011-09-26.xml --- 76 186 Monday, September 26, 2011 Contents Agriculture Agriculture Department See Food and Nutrition Service See Food Safety and Inspection Service See Natural Resources Conservation Service See Rural Business-Cooperative Service Air Force Air Force Department NOTICES Privacy Act; Systems of Records, 59389-59391 2011-24645 Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Bonneville Bonneville Power Administration NOTICES Records of Decisions;

Availability: Big Eddy-Knight Transmission Project, 59394 2011-24610 Bureau of Consumer Financial Protection NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Generic Clearance for Research in Development of Disclosure Forms, 59379 2011-24578 Centers Medicare Centers for Medicare & Medicaid Services RULES Medicare Program: Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals, etc.; Correction, 59263-59265 2011-24669 Inpatient Rehabilitation Facility Prospective Payment System for Federal Fiscal Year 2012, etc.;

Correction, 59256-59263 2011-24671 Prospective Payment System and Consolidated Billing for Skilled Nursing Facilities for FY 2012; Correction, 59265-59266 2011-24670 Children Children and Families Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Responsible Fatherhood Reentry Strategies Study - Discussion Guides, 59399-59400 2011-24536 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration Commodity Futures Commodity Futures Trading Commission RULES Foreign Futures and Options Contracts on a Non-Narrow-Based Security Index:

Commission Certification Procedures, 59241-59247 2011-24609 Defense Department Defense Department See Air Force Department See Navy Department NOTICES Meetings: Board of Regents of Uniformed Services University of Health Sciences, 59388 2011-24595 Department of Defense Military Family Readiness Council, 59388-59389 2011-24599 Employee Benefits Employee Benefits Security Administration NOTICES Exemptions from Certain Prohibited Transaction Restrictions, 59426-59434 2011-24657 Proposed Exemptions from Certain Prohibited Transaction Restrictions, 59434-59445 2011-24656 Proposed Exemptions from Certain Prohibited Transaction Restrictions;

Withdrawal, 59445-59446 2011-24530 Energy Department Energy Department See Bonneville Power Administration See Energy Efficiency and Renewable Energy Office NOTICES Meetings: Environmental Management Site-Specific Advisory Board, Nevada, 59393 2011-24616 Environmental Management Site-Specific Advisory Board, Northern New Mexico, 59392-59393 2011-24629 Environmental Management Site-Specific Advisory Board, Oak Ridge Reservation, 59393-59394 2011-24614 Energy Efficiency Energy Efficiency and Renewable Energy Office NOTICES Energy Conservation Program for Consumer Products:

Samsung Electronics America, Inc.; Extension of Interim Waiver from Residential Refrigerator and Refrigerator-Freezer Test Procedure, 59394-59395 2011-24611 Environmental Protection Environmental Protection Agency RULES Approvals and Promulgations of Air Quality Implementation Plans: Maryland; Transportation Conformity Regulations, 59252-59254 2011-24526 North Carolina; Clean Smokestacks Act, 59250-59252 2011-24513 Interim Final Determination to Stay and Defer Sanctions: San Joaquin Valley Unified Air Pollution Control District, 59254-59256 2011-24516 PROPOSED RULES Approvals and Promulgations of Air Quality Implementation Plans:

Maryland; Transportation Conformity Regulations, 59344 2011-24527 Montana; Revisions to Administrative Rules - Air Quality, Exclusion for De Minimis Changes, 59338-59344 2011-24697 New Mexico; Albuquerque/Bernalillo County; Prevention of Significant Deterioration, Greenhouse Gas Tailoring Rule Revisions, 59334-59338 2011-24696 Approvals and Promulgations of Implementation Plans; Designation of Areas for Air Quality Planning Purposes: Redesignation of Greensboro-Winston-Salem-High Point, NC,1997 Annual Fine Particulate Matter Nonattainment Area to Attainment, 59345-59361 2011-24644 NOTICES Data Transfers:

Primus Solutions, Inc., 59395 2011-24285 Meetings: Farm, Ranch, and Rural Communities Committee, 59396 2011-24638 Webcast of Environmental Financial Advisory Board, 59395-59396 2011-24643 Executive Office of the President See Presidential Documents Federal Aviation Federal Aviation Administration RULES Airworthiness Directives; Empresa Brasileira de Aeronautica S.A. Airplanes, 59240-59241 2011-23768 PROPOSED RULES Establishments of Class D and E Airspace; Amendments of Class E Airspace:

Punta Gorda, FL, 59306-59307 2011-24640 NOTICES Meetings: Air Traffic Procedures Advisory Committee, 59481-59482 2011-24641 RTCA Special Committee 135; Environmental Conditions and Test Procedures for Airborne Equipment, 59481 2011-24637 RTCA Special Committee 224; Airport Security Access Control Systems, 59481 2011-24635 Federal Communications Federal Communications Commission RULES Structure and Practices of the Video Relay Service Program, 59269-59271 2011-24623 Federal Emergency Federal Emergency Management Agency RULES Changes in Flood Elevation Determinations, 59268-59269 2011-24694 Suspensions of Community Eligibility, 59266-59268 2011-24691 PROPOSED RULES Flood Elevation Determinations, 59361-59371 2011-24687 Federal Railroad Federal Railroad Administration NOTICES Petitions for Waivers of Compliance, 59482 2011-24574 Federal Reserve Federal Reserve System RULES Equal Credit Opportunity, 59237-59239 2011-24300 NOTICES Changes in Bank Control:

Acquisitions of Shares of Bank or Bank Holding Company, 59396 2011-24567 Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 59396-59397 2011-24620 Federal Trade Federal Trade Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59397-59399 2011-24573 Fish Fish and Wildlife Service RULES 2011-2012 Refuge-Specific Hunting and Sport Fishing Regulations: Correction, 59304 2011-24498 Migratory Bird Hunting: Hunting on Certain Federal Indian Reservations and Ceded Lands for the 2011-12 Late Season, 59298-59304 2011-24668 Late Seasons and Bag and Possession Limits for Certain Migratory Game Birds, 59271-59298 2011-24675 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Alaska Guide Service Evaluation, 59420-59421 2011-24632 Approval Procedures for Nontoxic Shot and Shot Coatings, 59421-59422 2011-24634 Horseshoe Crab Tagging Program, 59422-59423 2011-24639 National Mourning Dove Hunter Attitude Survey on Nontoxic Shot, 59419-59420 2011-24630 Food and Drug Food and Drug Administration RULES Environmental Impact Considerations, Food Additives, and Generally Recognized as Safe Substances: Technical Amendments, 59247-59250 2011-24455 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Certification to Accompany Drug, Biological Product, and Device Applications or Submissions, 59401-59404 2011-24581 Requests for Inspection Under the Inspection by Accredited Persons Program, 59400-59401 2011-24582 Meetings: Allergenic Products Advisory Committee, 59406-59407 2011-24597 Anti-Infective Drugs Advisory Committee, 2011-24600 59405-59406 2011-24601 Gastrointestinal Drugs Advisory Committee, 59404-59405 2011-24602 2011-24603 Report and Information on Non-Standardized Allergenic Extracts in Diagnosis and Treatment of Allergic Disease;

Availability, 59407-59408 2011-24598 Statement of Organizations, Functions, and Delegations of Authority, 59408-59410 2011-24583 Food and Nutrition Food and Nutrition Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: National Universal Product Code Database, 59379-59381 2011-24575 Food Safety Food Safety and Inspection Service NOTICES Meetings: Codex Alimentarius Commission: Codex Committee on Food Hygiene, 59381-59382 2011-24569 Foreign Assets Foreign Assets Control Office NOTICES Additional Designations, Foreign Narcotics Kingpin Designation Act, 59483-59488 2011-24682 Additions to Identifying Information for Individuals Previously Designated Pursuant to Executive Order 12978, 59488 2011-24678 Designation of Three Individuals Pursuant to Executive Order 13224, 59488-59489 2011-24680 Health and Human Health and Human Services Department See Centers for Medicare & Medicaid Services See Children and Families Administration See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health NOTICES Statements of Organization, Functions and Delegations of Authority, 59399 2011-24621 Health Resources Health Resources and Services Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 59410 2011-24561 Homeland Homeland Security Department See Federal Emergency Management Agency NOTICES Meetings: Towing Safety Advisory Committee, 59415-59416 2011-24580 Senior Executive Service Performance Review Board; Membership, 59416-59418 2011-24577 Interior Interior Department See Fish and Wildlife Service See National Park Service See Surface Mining Reclamation and Enforcement Office NOTICES Meetings: Wildland Fire Executive Council, 59418-59419 2011-24618 Internal Revenue Internal Revenue Service PROPOSED RULES User Fees:

Registered Tax Return Preparer Competency Examination and Fingerprinting Participants, etc., 59329-59334 2011-24771 International Trade Adm International Trade Administration NOTICES Antidumping Duty Orders; Preliminary Results of Third Five-Year Reviews: Brass Sheet and Strip from Germany, 59386-59387 2011-24664 International Trade Com International Trade Commission NOTICES Termination of Investigations: Certain Digital Set-Top Boxes and Components Thereof, 59425 2011-24576 Justice Department Justice Department NOTICES Lodgings of Consent Decrees under Clean Air Act, 59425-59426 2011-24604 Labor Department Labor Department See Employee Benefits Security Administration NASA National Aeronautics and Space Administration NOTICES Meetings:

Science Committee, 59446 2011-24684 National Archives National Archives and Records Administration NOTICES Records Schedules: Availability and Request for Comments, 59446-59447 2011-24772 National Foundation National Foundation on the Arts and the Humanities NOTICES Meetings: Arts Advisory Panel, National Endowment for Arts, 59447-59448 2011-24596 National Institute National Institutes of Health NOTICES Government-Owned Inventions; Availability for Licensing, 59410-59413 2011-24626 Meetings:

Center for Scientific Review, 59413, 59415 2011-24628 2011-24648 Eunice Kennedy Shriver National Institute of Child Health and Human Development, 59415 2011-24627 National Cancer Institute, 59413 2011-24646 National Institute of Neurological Disorders and Stroke, 59414 2011-24647 National Institute of Nursing Research, 59413-59414 2011-24651 National Institute on Drug Abuse, 59414-59415 2011-24660 2011-24662 National Oceanic National Oceanic and Atmospheric Administration RULES Titles of Officials, Office Names, and References, 59304-59305 2011-24659 PROPOSED RULES Fisheries of Caribbean, Gulf of Mexico, and South Atlantic:

Comprehensive Ecosystem-Based Amendment 2, 59371-59373 2011-24677 Generic Annual Catch Limits/Accountability Measures Amendment for Gulf of Mexico, 59373-59374 2011-24701 Queen Conch and Reef Fish Fishery Management Plans of Puerto Rico and U.S. Virgin Islands, 59375-59377 2011-24676 Fishery Management Plans of Puerto Rico and U.S. Virgin Islands: Reef Fish, Spiny Lobster, Queen Conch and Coral and Reef Associated Plants and Invertebrates, 59377-59378 2011-24700 NOTICES Meetings:

South Atlantic Fishery Management Council, 59387-59388 2011-24591 National Park National Park Service NOTICES Environmental Impact Statements; Availability, etc.: Drakes Bay Oyster Co. Special-use Permit, Point Reyes National Seashore, CA, 59423-59424 2011-24658 National Resources Natural Resources Conservation Service NOTICES Proposed Change to Section IV of the Virginia State Technical Guide, 59382-59383 2011-24562 Navy Navy Department NOTICES Government-Owned Inventions; Available for Licensing, 59391-59392 2011-24679 Intents to Grant Exclusive Patent Licenses:

Enhanced Energy Group, LLC., 59392 2011-24695 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59448 2011-24663 Draft Regulatory Guides; Issuance, Availability, 59448-59449 2011-24615 Meetings: Advisory Committee On Reactor Safeguards, 59449-59450 2011-24612 Postal Regulatory Postal Regulatory Commission NOTICES Meetings; Sunshine Act, 59450-59451 2011-24708 Post Office Closings, 59451-59454 2011-24566 2011-24568 2011-24565 Presidential Documents Presidential Documents PROCLAMATIONS Special Observances:

National Hispanic-Serving Institution Week (Proc. 8718), 59499-59500 2011-24888 ADMINISTRATIVE ORDERS Narcotics and Drugs; Major Illicit Transit or Producing Countries (Presidential Determination) No. 2011-16 of September 15, 2011, 59495-59497 2011-24887 Palestinian Authority; Waiver of Restriction on Providing Funds (Presidential Determination) No. 2011-14 of August 30, 2011, 59491-59493 2011-24886 Railroad Retirement Railroad Retirement Board NOTICES Meetings; Sunshine Act, 59454 2011-24770 Rural Business Rural Business-Cooperative Service NOTICES Funds Availabilities;

Fiscal Year 2011: Rural Microentrepreneur Assistance Program, 59383-59386 2011-24649 Securities Securities and Exchange Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59454-59455 2011-24585 Applications: ASGI Agility Income Fund, et al., 59456-59458 2011-24589 Curian Series Trust and Curian Capital, LLC, 59455-59456 2011-24590 Stone Harbor Emerging Markets Income Fund, et al., 59458-59462 2011-24587 Self-Regulatory Organizations;

Proposed Rule Changes: BATS Exchange, Inc., 59472-59476 2011-24586 BATS Y-Exchange, Inc., 59462-59466 2011-24584 C2 Options Exchange, Inc., 59470-59472 2011-24594 Chicago Stock Exchange, Inc., 59476-59478 2011-24588 International Securities Exchange, Inc., 59472 2011-24593 NASDAQ Stock Market LLC, 59466-59470 2011-24607 Small Business Small Business Administration NOTICES Disaster Declarations: Maryland, 59478-59479 2011-24548 Montana; Amendment 2, 59479-59480 2011-24570 New Jersey, 59479 2011-24549 Texas;

Amendment 2, 59480 2011-24564 Vermont; Amendment 3, 59479 2011-24554 Vermont; Amendment 5, 59479 2011-24556 Meetings: Region II Buffalo District Advisory Council, 59480 2011-24571 Surrender of License of Small Business Investment Company, 59480 2011-24572 Surface Mining Surface Mining Reclamation and Enforcement Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59424-59425 2011-24534 Surface Transportation Surface Transportation Board NOTICES Exemptions:

Maine Northern Railway Co., et al., 59482-59483 2011-24653 Quarterly Rail Cost Adjustment Factor, 59483 2011-24553 Transportation Department Transportation Department See Federal Aviation Administration See Federal Railroad Administration See Surface Transportation Board PROPOSED RULES Nondiscrimination on Basis of Disability in Air Travel: Accessibility of Web Sites and Automated Kiosks at U.S. Airports, 59307-59328 2011-24298 Treasury Treasury Department See Foreign Assets Control Office See Internal Revenue Service NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 59483 2011-24613 Separate Parts In This Issue Part II Presidential Documents, 59491-59493, 59495-59497, 59499-59500 2011-24888 2011-24887 2011-24886 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. 76 186 Monday, September 26, 2011 Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 202 [Regulation B;

Docket No. R-1426] RIN 7100 AD 78 Equal Credit Opportunity AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule. SUMMARY: The Board is publishing a final rule amending Regulation B (Equal Credit Opportunity). Section 704B of the Equal Credit Opportunity Act (ECOA), as added by Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act or Act), requires that financial institutions collect and report information concerning credit applications made by women or minority-owned businesses and by small businesses.

ECOA Section 704B became effective on the date that general rulemaking authority for ECOA was transferred to the Consumer Financial Protection Bureau (CFPB or Bureau), which was July 21, 2011. Although the CFPB has the authority to issue rules to implement ECOA Section 704B for most entities, the Board retains authority to issue rules for certain motor vehicle dealers. This final rule excepts motor vehicle dealers subject to the Board's jurisdiction from the requirements of ECOA Section 704B until the effective date of final rules issued by the Board to implement that provision.

DATES: This final rule is effective September 26, 2011. FOR FURTHER INFORMATION CONTACT: Lorna Neill or Nikita Pastor, Senior Attorneys, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington, DC 20551, at

(202)452-2412 or

(202)452-3667. For users of Telecommunications Device for the Deaf

(TDD)only, contact

(202)263-4869. SUPPLEMENTARY INFORMATION: I. Background Section 704B of ECOA, as added by Section 1071 of the Dodd-Frank Act, requires that financial institutions collect and report information concerning credit applications made by women or minority-owned businesses and by small businesses. 15 U.S.C. 1691c-2. The statute directs financial institutions to compile and maintain the data “in accordance with regulations of the Bureau.” ECOA Section 704B(e)(1), 15 U.S.C. 1691c-2(e)(1). The purpose of Section 704B is “to facilitate enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses.” ECOA Section 704B became effective on the date that rulemaking authority for ECOA transferred to the CFPB, which was July 21, 2011. On April 11, 2011, the CFPB issued a letter concluding that financial institutions have no obligations under Section 704B until the CFPB issues regulations to implement the requirements. 1 The CFPB letter notes that Congress intended Section 704B to produce reliable and consistent data that can be analyzed by the CFPB, other government agencies, and members of the public to facilitate enforcement of fair lending laws and to identify business and community development needs. Based on the statutory text, purpose, and legislative history, the CFPB letter concludes that implementing regulations are necessary to ensure that data are collected and reported in a consistent, standardized fashion that allows for sound analysis by the CFPB and other users of the data. 1 See Letter from Leonard J. Kennedy, General Counsel, CFPB, to Chief Executive Officers of Financial Institutions under Section 1071 of the Dodd-Frank Act, *http://www.consumerfinance.gov/wp-content/uploads/2011/04/GC-letter-re-1071.pdf* (Apr. 11, 2011). Although the CFPB has authority to issue rules to implement ECOA (including data collection under Section 704B) for most entities, the Board retains authority to issue rules under ECOA for motor vehicle dealers covered by Section 1029(a) of the Dodd-Frank Act. 2 Thus, the Board is responsible for issuing regulations to implement the amendments made by Section 704B for motor vehicle dealers covered by Section 1029(a). Consequently, the Board has received inquiries as to whether motor vehicle dealers must comply with the requirements of ECOA Section 704B before implementing regulations are issued. 2 Section 1029(a) of the Dodd-Frank Act states: “Except as permitted in subsection (b), the Bureau may not exercise any rulemaking * * * authority * * * over a motor vehicle dealer that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.” 12 U.S.C. 5519(a). Section 1029(b) of the Dodd-Frank Act states: “Subsection

(a)shall not apply to any person, to the extent such person

(1)provides consumers with any services related to residential or commercial mortgages or self-financing transaction involving real property;

(2)operates a line of business

(A)that involves the extension of retail credit or retail leases involving motor vehicles; and

(B)in which

(i)the extension of retail credit or retail leases are [sic] provided directly to consumers and

(ii)the contract governing such extension of retail credit or retail leases is not routinely assigned to an unaffiliated third party finance or leasing source; or

(3)offers or provides a consumer financial product or service not involving or related to the sale, financing, leasing, rental, repair, refurbishment, maintenance, or other servicing of motor vehicles, motor vehicle parts, or any related or ancillary product or service.” 12 U.S.C. 5519(b). The Board believes that detailed rules to implement ECOA Section 704B are necessary to ensure that data collected and reported under that provision are useful. As noted, the purposes of the statute are to facilitate fair lending enforcement and to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses. To support sound analysis by users of the data, the data should be collected and reported by motor vehicle dealers in a consistent and standardized way. To achieve this, implementing rules can provide motor vehicle dealers with uniform definitions and standards that they can follow in collecting and reporting data. For these reasons, on June 23, 2011, the Board published for public comment a proposed rule to except motor vehicle dealers covered by Section 1029(a) of the Dodd-Frank Act from any obligation to comply with ECOA Section 704B until the Board issues final regulations to implement that provision and those regulations become effective. The proposed rule was consistent with the views expressed by the CFPB, and was supported by the text and purpose of Section 1071 of the Dodd-Frank Act. The applicability of the proposed rule was limited to Section 1071 and would not affect the implementation date of any other provision of the Dodd-Frank Act. The Board received five comment letters in response to the June 2011 proposal. All of the commenters generally supported the proposed rule. For the reasons discussed below, the Board is adopting the June 2011 proposal as a final rule without changes. II. Legal Authority ECOA Section 703, as amended by Section 1085 of the Dodd-Frank Act, directs the Board to prescribe regulations to carry out ECOA's purposes for motor vehicle dealers covered by Section 1029(a) of the Dodd-Frank Act. *See* 15 U.S.C. 1691b(f). In addition, the Board's general rulemaking under ECOA includes authority to issue regulations that contain such classifications, differentiation, or other provisions, or that provide for such adjustments and exceptions for any class of transactions, as in the judgment of the Board are necessary or proper to effectuate the purposes of ECOA, to prevent circumvention or evasion of ECOA, or to facilitate or substantiate compliance with ECOA. *Id.* Finally, ECOA Section 704B(g)(2) contains authority for exceptions or exemptions for any class of financial institutions as deemed necessary or appropriate to carry out the purposes of Section 704B. 15 U.S.C. 1691c-2(g)(2). Pursuant to this authority, the final rule excepts motor vehicle dealers covered by Section 1029(a) of the Dodd-Frank Act from the requirement to comply with ECOA Section 704B until the effective date of final rules issued by the Board to implement Section 704B. The Board believes that this exception is necessary to effectuate the purposes of ECOA and facilitate compliance. First, as noted, ECOA Section 704B states that its purpose is “to facilitate enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses.” 15 U.S.C. 1691c-2(a). The Board believes that this purpose is better served if detailed rules prescribe the method for collecting and reporting data under Section 704B. The collection of data in a uniform manner under a final regulation will enhance data analysis and enforcement capabilities. Second, in directing that financial institutions compile and maintain the data “in accordance with regulations of the Bureau,” the text of ECOA Section 704B clearly contemplates that regulations are necessary to implement this provision. 3 Finally, delaying data collection until there are implementing regulations will facilitate compliance by providing guidance on how motor vehicle dealers can comply with the statutory requirements in a manner that effectuates the legislative purposes. 3 See ECOA Section 704B(e)(1), 15 U.S.C. 1691c-2(e)(1) (“Each financial institution shall compile and maintain, in accordance with regulations of the Bureau, a record of the information provided by any loan applicant * * *.”). Effective Date This final rule is effective upon publication in the **Federal Register** . The Administrative Procedures Act (APA), 5 U.S.C. 551 *et seq.* , generally requires that rules be published not less than 30 days before their effective date. *See* 5 U.S.C. 553(d). However, the APA provides exceptions to this timing requirement for certain rules. For the reasons discussed below, the Board believes that the final rule meets the requirements for an exception to the APA's general 30-day notice requirement. Specifically, the APA's 30-day notice requirement does not apply to “a substantive rule which grants or recognizes an exemption or relieves a restriction.” 5 U.S.C. 553(d)(1). As explained above, the final rule temporarily relieves motor vehicle dealers covered under Section 1029(a) of the Dodd-Frank Act from the statutory obligation under ECOA Section 704B to collect and report data on credit applications made by women- and minority-owned businesses and small businesses. The rule therefore grants a temporary exemption from a statutory obligation that might otherwise apply. In addition, the APA's 30-day notice rule does not apply when “otherwise provided by the agency for good cause found and published with the rule.” 5 U.S.C. 553(d)(3). The Board finds that there is good cause to make this final rule effective immediately because Section 704B has already become effective and the text of the statute clearly contemplates that regulations are necessary to implement the law's requirements. For the reasons discussed above, the Board believes that regulations are necessary to effectuate the purposes of Section 704B and that motor vehicle dealers should be excepted from the statutory requirements until such rules are in effect. III. Summary of Comments Received The Board received five comment letters in response to the proposed rule. Two letters were received from trade associations that represent motor vehicle dealers, vehicle manufacturers and other automotive-related companies. One letter was received from a trade association that represents finance companies and other financial institutions that provide consumer and commercial credit. Comment letters were also received from a public policy advocacy organization and a research and consulting firm that focuses on women- and minority-owned financial institutions and investments in minority businesses. All of the comment letters generally supported the Board's proposal to except motor vehicle dealers from the requirements of Section 704B until the effective date of final rules issued by the Board to implement that provision. Three commenters expressly urged the Board to consult and coordinate with the CFPB in developing substantive rules under Section 704B so that the rules issued by both agencies will be uniform and consistent. The consumer advocacy organization that commented also urged the Board to issue rules implementing the data collection requirements as quickly as possible so that motor vehicle dealers can comply as soon as the CFPB's rules for other creditors become effective. IV. Section-by-Section Analysis Section 202.17 Data Collection for Credit Applications by Women-Owned, Minority-Owned, or Small Businesses 17(a) Effective Date for Motor Vehicle Dealers Section 704B of ECOA requires that financial institutions collect and report information concerning credit applications made by women or minority-owned businesses and by small businesses. 15 U.S.C. 1691c-2. This section of ECOA became effective on the designated transfer date, which was July 21, 2011. The term “financial institution” includes any entity that engages in any financial activity. 15 U.S.C. 1691c-2(h)(1). The term “financial activity” is not defined in ECOA or the Dodd-Frank Act, but motor vehicle dealers covered by Section 1029(a) of the Dodd-Frank Act might be engaged in “financial activity” and therefore might be financial institutions subject to the requirements of ECOA Section 704B. For the reasons discussed above, the Board is adopting Section 202.17(a) as proposed to provide that no motor vehicle dealer covered by Section 1029(a) of the Dodd-Frank Act is required to comply with the requirements of Section 704B of ECOA until the effective date of final rules issued by the Board to implement Section 704B. In addition, the final rule specifies that Section 202.17(a) shall not be construed to affect the effective date of ECOA Section 704B for any person other than a motor vehicle dealer covered by Section 1029(a) of the Dodd-Frank Act. V. Paperwork Reduction Act In accordance with the Paperwork Reduction Act

(PRA)of 1995, 44 U.S.C. 3506, 5 CFR part 1320 Appendix A.1, the Board reviewed the proposed rule under the authority delegated to the Board by the Office of Management and Budget. The rule contains no collections of information under the PRA. *See* 44 U.S.C. 3502(3). Accordingly, no paperwork burden is associated with the rule. VI. Regulatory Flexibility Analysis The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires an agency to perform an initial and final regulatory flexibility analysis on the impact a rule is expected to have on small entities. The Small Business Administration

(SBA)establishes size standards that define which entities are small businesses for purposes of the RFA. 4 For example, to be considered a small business under the SBA size standard, a new car dealer must have 200 or fewer employees and a used car dealer must have $23 million or less in annual revenues. 4 U.S. Small Business Administration, Table of Small Business Size Standards Matched to North American Industry Classification System Codes, available at *http://www.sba.gov/sites/default/files/Size_Standards_Table.pdf* . Under Section 605(b) of the RFA, 5 U.S.C. 605(b), the initial regulatory flexibility analysis otherwise required under Section 603 of the RFA is not required if an agency certifies, along with a statement providing the factual basis for such certification, that the rule will not have a significant economic impact on a substantial number of small entities. Based on its initial and final analysis and for the reasons stated below, the Board believes that this final rule will not have a significant economic impact on a substantial number of small entities. A. Statement of Reasons, Objectives, and Legal Basis for the Final Rule Section 704B of ECOA, as added by Section 1071 of the Dodd-Frank Act, requires that financial institutions collect and report information concerning credit applications made by women or minority-owned businesses and by small businesses. ECOA Section 704B became effective on the date that rulemaking authority for ECOA was transferred to the CFPB, which was July 21, 2011. Although the CFPB has the authority to issue rules to implement ECOA Section 704B for most entities, the Board retains authority to issue rules for certain motor vehicle dealers. This final rule excepts motor vehicle dealers that are subject to the Board's jurisdiction from the requirements of ECOA Section 704B temporarily, until the effective date of final rules that will be issued by the Board to implement that provision. The SUPPLEMENTARY INFORMATION above contains information on the reasons, objectives and legal basis for the proposed rule. B. Summary of the Significant Issues Raised by Public Comment on the Board's Initial Analysis of Issues, and a Statement of Any Changes Made as a Result No public comments on the proposed rule addressed matters relating to the Board's initial regulatory flexibility analysis. C. Small Entities Affected by the Final Rule The final rule applies to motor vehicle dealers covered by Section 1029(a) of the Dodd-Frank Act. The total number of small entities covered by the final rules is unknown, because the Board does not have data on the number of small entities that are motor vehicle dealers covered by Section 1029(a). Furthermore, it is unclear how many motor vehicle dealers covered by Section 1029(a) receive credit applications from women-or minority-owned businesses or small businesses. Nevertheless, no small entities are likely to be affected by the final rule because the rule merely preserves the status quo by granting a temporary exemption from the requirement to comply with the statute, which took effect on July 21, 2011. D. Recordkeeping, Reporting, and Compliance Requirements The final rule will not impose any new recordkeeping, reporting, or compliance requirements. Instead, the final rule temporarily will delay these requirements until the Board issues final implementing regulations and the regulations become effective. E. Identification of Duplicative, Overlapping, or Conflicting Federal Regulations The Board has not identified any federal statutes or regulations that would duplicate, overlap, or conflict with the final rule. F. Significant Alternatives to the Regulatory Revisions The Board is not aware of any significant alternatives that would minimize any significant economic impact of the final rule on small entities. Commenters did not suggest any alternatives. List of Subjects in 12 CFR Part 202 Aged, Banks, banking, Civil rights, Credit, Discrimination, Federal Reserve System, Marital status discrimination, Penalties, Religious discrimination, Reporting and recordkeeping requirements, Sex discrimination. Authority and Issuance For the reasons set forth in the preamble, the Board amends Regulation B, 12 CFR part 202, as follows: PART 202—EQUAL CREDIT OPPORTUNITY (REGULATION B) 1. The authority citation for part 202 is revised to read as follows: Authority: 15 U.S.C. 1691-1691f; Pub. L. 111-203, 124 Stat. 1376. 2. Add § 202.17 to read as follows: § 202.17 Data collection for credit applications by women-owned, minority-owned, or small businesses. No motor vehicle dealer covered by section 1029(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, 12 U.S.C. 5519(a), shall be required to comply with the requirements of section 704B of the Equal Credit Opportunity Act, 15 U.S.C. 1691c-2, until the effective date of final rules issued by the Board to implement section 704B of the Act, 15 U.S.C. 1691c-2. This paragraph shall not be construed to affect the effective date of section 704B of the Act for any person other than a motor vehicle dealer covered by section 1029(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. By order of the Board of Governors of the Federal Reserve System, September 16, 2011. Jennifer J. Johnson, Secretary of the Board. [FR Doc. 2011-24300 Filed 9-23-11; 8:45 am]

Connectionstraces to 10

Traces to 10 documents

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