Vol. 84 Tuesday, No. 209 October 29, 2019

Pages 57813–58004

OFFICE OF THE FEDERAL REGISTER

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The FEDERAL REGISTER (ISSN 0097–6326) is published daily, SUBSCRIPTIONS AND COPIES Monday through Friday, except official holidays, by the Office PUBLIC of the Federal Register, National Archives and Records Administration, under the Federal Register Act (44 U.S.C. Ch. 15) Subscriptions: and the regulations of the Administrative Committee of the Federal Paper or fiche 202–512–1800 Register (1 CFR Ch. I). The Superintendent of Documents, U.S. Assistance with public subscriptions 202–512–1806 Government Publishing Office, is the exclusive distributor of the official edition. Periodicals postage is paid at Washington, DC. General online information 202–512–1530; 1–888–293–6498 Single copies/back copies: The FEDERAL REGISTER provides a uniform system for making available to the public regulations and legal notices issued by Paper or fiche 202–512–1800 Federal agencies. These include Presidential proclamations and Assistance with public single copies 1–866–512–1800 Executive Orders, Federal agency documents having general (Toll-Free) applicability and legal effect, documents required to be published FEDERAL AGENCIES by act of Congress, and other Federal agency documents of public Subscriptions: interest. Assistance with Federal agency subscriptions: Documents are on file for public inspection in the Office of the Federal Register the day before they are published, unless the Email [email protected] issuing agency requests earlier filing. For a list of documents Phone 202–741–6000 currently on file for public inspection, see www.federalregister.gov. The seal of the National Archives and Records Administration The Federal Register Printing Savings Act of 2017 (Pub. L. 115- authenticates the Federal Register as the official serial publication 120) placed restrictions on distribution of official printed copies established under the Federal Register Act. Under 44 U.S.C. 1507, of the daily Federal Register to members of Congress and Federal the contents of the Federal Register shall be judicially noticed. offices. Under this Act, the Director of the Government Publishing The Federal Register is published in paper and on 24x microfiche. Office may not provide printed copies of the daily Federal Register It is also available online at no charge at www.govinfo.gov, a unless a Member or other Federal office requests a specific issue service of the U.S. Government Publishing Office. or a subscription to the print edition. For more information on how to subscribe use the following website link: https:// The online edition of the Federal Register is issued under the www.gpo.gov/frsubs. authority of the Administrative Committee of the Federal Register as the official legal equivalent of the paper and microfiche editions (44 U.S.C. 4101 and 1 CFR 5.10). It is updated by 6:00 a.m. each day the Federal Register is published and includes both text and graphics from Volume 1, 1 (March 14, 1936) forward. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800 or 866-512- 1800 (toll free). E-mail, gpocusthelp.com. The annual subscription price for the Federal Register paper edition is $860 plus postage, or $929, for a combined Federal Register, Federal Register Index and List of CFR Sections Affected (LSA) subscription; the microfiche edition of the Federal Register including the Federal Register Index and LSA is $330, plus postage. Six month subscriptions are available for one-half the annual rate. The prevailing postal rates will be applied to orders according to the delivery method requested. The price of a single copy of the daily Federal Register, including postage, is based on the number of pages: $11 for an issue containing less than 200 pages; $22 for an issue containing 200 to 400 pages; and $33 for an issue containing more than 400 pages. Single issues of the microfiche edition may be purchased for $3 per copy, including postage. Remit check or money order, made payable to the Superintendent of Documents, or charge to your GPO Deposit Account, VISA, MasterCard, American Express, or Discover. Mail to: U.S. Government Publishing Office—New Orders, P.O. Box 979050, St. Louis, MO 63197-9000; or call toll free 1-866-512-1800, DC area 202-512-1800; or go to the U.S. Government Online Bookstore site, see bookstore.gpo.gov. There are no restrictions on the republication of material appearing in the Federal Register. How To Cite This Publication: Use the volume number and the page number. Example: 84 FR 12345. Postmaster: Send address changes to the Superintendent of Documents, Federal Register, U.S. Government Publishing Office, Washington, DC 20402, along with the entire mailing label from the last issue received.

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Contents Federal Register Vol. 84, No. 209

Tuesday, October 29, 2019

Agriculture Department Application for Borrower Defense to Loan Repayment See Rural Utilities Service Form, 57863–57864 Performance Report for Assistance for Arts Education Antitrust Division Development and Dissemination, Professional NOTICES Development for Arts Educators and Arts in Changes under the National Cooperative Research and Education National Programs, 57855 Production Act: Privacy Act; Systems of Records, 57856–57863 UHD Alliance, Inc., 57884–57885 Employment and Training Administration Bureau of Consumer Financial Protection NOTICES RULES Agency Information Collection Activities; Proposals, Home Mortgage Disclosure (Regulation C), 57946–58004 Submissions, and Approvals: Trade Adjustment Assistance Efforts to Improve Centers for Medicare & Medicaid Services Outcomes; Correction, 57885–57886 NOTICES Agency Information Collection Activities; Proposals, Energy Department Submissions, and Approvals, 57875–57877 See Federal Energy Regulatory Commission Coast Guard Environmental Protection Agency RULES RULES Regulated Navigation Area: Air Quality State Implementation Plans; Approvals and Saint Simons Sound, GA, 57820–57822 Promulgations: Safety Zone: California; Calaveras County Air Pollution Control Naval Training Operations, U.S. Naval Magazine Indian District, 57822–57824 Island, WA, 57818–57819 California; Ventura County Air Pollution Control District, 57826–57827 Commerce Department Georgia; Revisions to Sulfur Dioxide Ambient Air Quality See Foreign-Trade Zones Board Standards, 57824–57826 See International Trade Administration PROPOSED RULES See National Oceanic and Atmospheric Administration Air Quality State Implementation Plans; Approvals and Promulgations: Commodity Futures Trading Commission Washington; Update to the Adoption by Reference, PROPOSED RULES Energy Facility Site Evaluation Council, 57836– Certain Swap Data Repository and Data Reporting 57838 Requirements, 57831–57832 Approval and Promulgation of State Plans for Designated NOTICES Facilities and Pollutants: Agency Information Collection Activities; Proposals, Virginia; Emission Standards for Existing Municipal Submissions, and Approvals, 57850–57852 Solid Waste Landfills, 57838–57840 Meetings; Sunshine Act, 57852 NOTICES Meetings: Copyright Royalty Board Methylene Chloride; Draft Toxic Substances Control Act PROPOSED RULES Risk Evaluation and TSCA Science Advisory Determination of Royalty Rates and Terms for Ephemeral Committee on Chemicals, 57866–57868 Recording and Digital Performance of Sound Recordings (Web V), 57833–57836 Federal Aviation Administration RULES Defense Department Airworthiness Directives: NOTICES Pratt and Whitney Turbofan Engines, 57813–57816 Agency Information Collection Activities; Proposals, Revisions to Civil Penalty Amounts, 57813 Submissions, and Approvals, 57853–57854 PROPOSED RULES Meetings: Airworthiness Directives: Defense Innovation Board, 57852–57853 Bombardier, Inc., Airplanes, 57829–57831 Delaware River Basin Commission Federal Council on the Arts and the Humanities NOTICES NOTICES Public Hearing and Business Meeting, 57854–57855 Meetings: Arts and Artifacts Indemnity Panel Advisory Committee, Education Department 57887 NOTICES Agency Information Collection Activities; Proposals, Federal Deposit Insurance Corporation Submissions, and Approvals: NOTICES 2019–20 National Postsecondary Student Aid Study, Agency Information Collection Activities; Proposals, 57855–57856 Submissions, and Approvals, 57869–57874

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Federal Energy Regulatory Commission Homeland Security Department NOTICES See Coast Guard Application: See U.S. Customs and Border Protection Douglas Leen, 57865–57866 See U.S. Immigration and Customs Enforcement Request Under Blanket Authorization: Southern Natural Gas Co., LLC, 57864 Indian Affairs Bureau NOTICES Federal Motor Carrier Safety Administration Johnson-O’Malley Program; Preliminary Report, 57880– RULES 57881 Revisions to Civil Penalty Amounts, 57813 NOTICES Inter-American Foundation Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Meetings; Sunshine Act, 57880 Driver Qualification Files, 57934–57935 Hours of Service of Drivers; Exemption Applications: Interior Department Small Business in Transportation Coalition, 57932–57934 See Indian Affairs Bureau Federal Railroad Administration See National Park Service RULES Revisions to Civil Penalty Amounts, 57813 International Trade Administration NOTICES NOTICES Agency Information Collection Activities; Proposals, Antidumping or Countervailing Duty Investigations, Orders, Submissions, and Approvals, 57942–57943 or Reviews: Funding Opportunity for Magnetic Levitation Deployment Certain Frozen Warmwater Shrimp from India, 57847– Projects, 57935–57941 57848 Meetings: Crystalline Silicon Photovoltaic Products from the Railroad Safety Advisory Committee, 57943 People’s Republic of China, 57846–57847 Petition for Waiver of Compliance, 57943–57944 Finished Carbon Steel Flanges from India, 57848–57850 Determination in the Less-Than-Fair-Value Investigation: Federal Reserve System Certain Collated Steel Staples from the People’s Republic NOTICES of China, 57845–57846 Change in Bank Control: Acquisitions of Shares of a Bank or Bank Holding International Trade Commission Company, 57874 NOTICES Investigations; Determinations, Modifications, and Rulings, Food and Drug Administration etc.: RULES Certain Memory Modules and Components Thereof, Medical Devices: 57884 Clinical Chemistry and Clinical Toxicology Devices; Certain Smart Thermostats, Smart HVAC Systems, and Classification of the Continuous Glucose Monitor Components Thereof, 57882–57883 Data Management System, 57816–57818 Forged Steel Fittings from India and Korea, 57881–57882 NOTICES Textile and Apparel Imports from China: Statistical Guidance: Reports, 57883 Type V Drug Master Files for Center for Drug Evaluation and Research-Led Combination Products Using Justice Department Device Constituent Parts with Electronics or See Antitrust Division Software, 57877–57878 NOTICES Foreign-Trade Zones Board Agency Information Collection Activities; Proposals, Submissions, and Approvals: NOTICES DEA Leadership Engagement Survey, 57885 Production Activity: Cheniere Energy, Inc., Foreign-Trade Zone 122, Corpus Labor Department Christi, TX, 57845 Proposed Production Activity: See Employment and Training Administration Kubota North America Corp., Foreign-Trade Zone 26, See Occupational Safety and Health Administration Atlanta, GA, 57844–57845 Library of Congress Health and Human Services Department See Copyright Royalty Board See Centers for Medicare & Medicaid Services See Food and Drug Administration Maritime Administration See Health Resources and Services Administration RULES See National Institutes of Health Revisions to Civil Penalty Amounts, 57813 Health Resources and Services Administration National Foundation on the Arts and the Humanities NOTICES See Federal Council on the Arts and the Humanities Agency Information Collection Activities; Proposals, Submissions, and Approvals: National Highway Traffic Safety Administration Nurse Anesthetist Traineeship Program Specific Data RULES Forms, 57878–57879 Revisions to Civil Penalty Amounts, 57813

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National Institutes of Health Securities and Exchange Commission NOTICES NOTICES Meetings: Agency Information Collection Activities; Proposals, National Institute of Biomedical Imaging and Submissions, and Approvals, 57903–57904, 57920– Bioengineering, 57879 57921, 57924–57926, 57928–57929 Application: National Oceanic and Atmospheric Administration MassMutual Select Funds, et al., 57926–57928 RULES Meetings: Pacific Island Pelagic Fisheries: Investor Advisory Committee, 57921 2019 Commonwealth of the Northern Mariana Islands Self-Regulatory Organizations; Proposed Rule Changes: Bigeye Tuna Fishery; Closure, 57827–57828 LCH SA, 57897–57903 PROPOSED RULES Nasdaq ISE, LLC, 57908–57911 Fisheries of the Caribbean, Gulf of Mexico, and South NYSE Arca, Inc., 57921–57924 Atlantic: NYSE Chicago, Inc., 57904–57908 Snapper-Grouper Fishery of the South Atlantic Region; The Nasdaq Stock Market LLC, 57929–57932 Regulatory Amendment 30, 57840–57843 The Options Clearing Corporation, 57890–57896, 57911– 57920 National Park Service PROPOSED RULES Transportation Department Demonstrations and Special Events on the National Mall See Federal Aviation Administration and Memorial Parks; Withdrawal, 57833 See Federal Motor Carrier Safety Administration See Federal Railroad Administration National Science Foundation See Maritime Administration NOTICES See National Highway Traffic Safety Administration Agency Information Collection Activities; Proposals, See Pipeline and Hazardous Materials Safety Submissions, and Approvals: Administration Grantee Reporting Requirements for Nanoscale Science See Saint Lawrence Seaway Development Corporation and Engineering Centers, 57887–57888 RULES Revisions to Civil Penalty Amounts, 57813 Nuclear Regulatory Commission NOTICES Treasury Department Meetings; Sunshine Act, 57888–57889 PROPOSED RULES Disclosure of Information Regarding Abandoned Occupational Safety and Health Administration Merchandise, 57832–57833 NOTICES Application for Expansion of Recognition: U.S. Customs and Border Protection TUV Rheinland of North America, Inc., 57886–57887 PROPOSED RULES Disclosure of Information Regarding Abandoned Pipeline and Hazardous Materials Safety Administration Merchandise, 57832–57833 RULES Revisions to Civil Penalty Amounts, 57813 U.S. Immigration and Customs Enforcement Postal Regulatory Commission NOTICES NOTICES Agency Information Collection Activities; Proposals, New Postal Product, 57889 Submissions, and Approvals: Obligor Change of Address, 57879–57880 Postal Service NOTICES Mailing Cremated Remains, 57889–57890 Separate Parts In This Issue Product Change: Priority Mail Negotiated Service Agreement, 57889 Part II Bureau of Consumer Financial Protection, 57946–58004 Rural Utilities Service NOTICES Agency Information Collection Activities; Proposals, Reader Aids Submissions, and Approvals, 57844 Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice Saint Lawrence Seaway Development Corporation of recently enacted public laws. RULES Revisions to Civil Penalty Amounts, 57813 To subscribe to the Federal Register Table of Contents NOTICES electronic mailing list, go to https://public.govdelivery.com/ Meetings: accounts/USGPOOFR/subscriber/new, enter your e-mail Saint Lawrence Seaway Development Corporation address, then follow the instructions to join, leave, or Advisory Board, 57944 manage your subscription.

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CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.

12 CFR 238...... 57831 1003...... 57945 239...... 57831 240...... 57831 14 CFR 241...... 57831 13...... 57813 242...... 57831 39...... 57813 243...... 57831 383...... 57813 244...... 57831 406...... 57813 270...... 57831 Proposed Rules: 272...... 57831 39...... 57829 386...... 57831 578...... 57831 17 CFR Proposed Rules: 50 CFR 23...... 57831 665...... 57827 43...... 57831 Proposed Rules: 45...... 57831 622...... 57840 49...... 57831 19 CFR Proposed Rules: 127...... 57832 133...... 57832 21 CFR 862...... 57816 33 CFR 165 (2 documents) ...... 57818, 57820 401...... 57813 36 CFR Proposed Rules: 7...... 57833 37 CFR Proposed Rules: 380...... 57833 40 CFR 52 (3 documents) ...... 57822, 57824, 57826 Proposed Rules: 52...... 57836 62...... 57838 46 CFR 221...... 57831 307...... 57831 340...... 57831 356...... 57831 49 CFR 107...... 57831 171...... 57831 190...... 57831 209...... 57831 213...... 57831 214...... 57831 215...... 57831 216...... 57831 217...... 57831 218...... 57831 219...... 57831 220...... 57831 221...... 57831 222...... 57831 223...... 57831 224...... 57831 225...... 57831 227...... 57831 228...... 57831 229...... 57831 230...... 57831 231...... 57831 232...... 57831 233...... 57831 234...... 57831 235...... 57831 236...... 57831 237...... 57831

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Rules and Regulations Federal Register Vol. 84, No. 209

Tuesday, October 29, 2019

This section of the FEDERAL REGISTER § 222.11 [Amended] ADDRESSES: You may send comments, contains regulatory documents having general ■ On page 37073, in the second column, using the procedures found in 14 CFR applicability and legal effect, most of which 11.43 and 11.45, by any of the following are keyed to and codified in the Code of amendatory instruction 47c should read as follows: methods: Federal Regulations, which is published under • Federal eRulemaking Portal: Go to 50 titles pursuant to 44 U.S.C. 1510. c. Remove the dollar amount ‘‘$113,894’’ and add in its place https://www.regulations.gov. Follow the The Code of Federal Regulations is sold by ‘‘$116,766’’. instructions for submitting comments. the Superintendent of Documents. • Fax: 202–493–2251. [FR Doc. C1–2019–14101 Filed 10–28–19; 8:45 am] • Mail: U.S. Department of BILLING CODE 1301–00–D Transportation, Docket Operations, DEPARTMENT OF TRANSPORTATION M–30, West Building Ground Floor, Room W12–140, 1200 New Jersey DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Avenue SE, Washington, DC 20590. • Federal Aviation Administration Hand Delivery: U.S. Department of 14 CFR Part 13 and 406 Transportation, Docket Operations, 14 CFR Part 39 M–30, West Building Ground Floor, Office of the Secretary Room W12–140, 1200 New Jersey [Docket No. FAA–2019–0843; Product Avenue SE, Washington, DC 20590, 14 CFR Part 383 Identifier 2019–NE–27–AD; Amendment 39– between 9 a.m. and 5 p.m., Monday 19777; AD 2019–21–11] through Friday, except Federal holidays. Saint Lawrence Seaway Development For service information identified in Corporation RIN 2120–AA64 this final rule, contact Pratt & Whitney, Airworthiness Directives; Pratt & 400 Main Street, East Hartford, CT 33 CFR Part 401 Whitney Turbofan Engines 06118; phone: 800–565–0140; fax: 860– 565–5442; email: [email protected]; Maritime Administration AGENCY: Federal Aviation internet: https://fleetcare.pw.utc.com. Administration (FAA), DOT. You may view this service information 46 CFR Parts 221, 307, 340, and 356 ACTION: Final rule; request for at the FAA, Engine and Propeller comments. Standards Branch, 1200 District Pipeline and Hazardous Materials Avenue, Burlington, MA 01803. For Safety Administration SUMMARY: The FAA is superseding information on the availability of this Airworthiness Directive (AD) 2019–19– material at the FAA, call 781–238–7759. 49 CFR Parts 107, 171, and 190 11 for certain Pratt & Whitney (PW) It is also available on the internet at PW1519G, PW1521G, PW1521GA, https://www.regulations.gov by Federal Railroad Administration PW1524G, PW1525G, PW1521G–3, searching for and locating Docket No. PW1524G–3, PW1525G–3, PW1919G, FAA–2019–0843. PW1921G, PW1922G, PW1923G, and 49 CFR Parts 209, 213, 214, 215, 216, PW1923G–A model turbofan engines. Examining the AD Docket 217, 218, 219, 220, 221, 222, 223, 224, AD 2019–19–11 required initial and You may examine the AD docket on 225, 227, 228, 229, 230, 231, 232, 233, repetitive inspections of the low- the internet at https://www.regulations. 234, 235, 236, 237, 238, 239, 240, 241, pressure compressor (LPC) inlet guide gov by searching for and locating Docket 242, 243, 244, 270, and 272 vane (IGV) and the LPC rotor 1 (R1) and, No. FAA–2019–0843; or in person at depending on the results of the Docket Operations between 9 a.m. and Federal Motor Carrier Safety inspections, possible replacement of the 5 p.m., Monday through Friday, except Administration LPC. This AD requires the same Federal holidays. The AD docket inspection of the LPC R1 for cracks or contains this final rule, the regulatory 49 CFR Part 386 damage, removes the inspection of the evaluation, any comments received, and LPC IGV for proper alignment, and other information. The street address for National Highway Traffic Safety expands the applicability to certain Docket Operations is listed above. Administration additional PW turbofan engines. This Comments will be available in the AD AD also reduces the compliance time for docket shortly after receipt. 49 CFR Part 578 these inspections for certain PW FOR FURTHER INFORMATION CONTACT: turbofan engines. This AD was Kevin M. Clark, Aerospace Engineer, RIN 2105–AE80 prompted by recent findings of cracks in ECO Branch, FAA, 1200 District the LPC R1 and an additional in-flight Avenue, Burlington, MA 01803; phone: Revisions to Civil Penalty Amounts failure of the LPC R1. The FAA is 781–238–7088; fax: 781–238–7199; issuing this AD to address the unsafe Correction email: [email protected]. condition on these products. SUPPLEMENTARY INFORMATION: In rule document 2019–14101 DATES: This AD is effective October 29, beginning on page 37059 in the issue of 2019. Discussion Wednesday, July 31, 2019, make the The FAA must receive any comments The FAA issued AD 2019–19–11, following correction: on this AD by December 13, 2019. Amendment 39–19747 (84 FR 50719,

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September 26, 2019) (‘‘AD 2019–19– performing borescope inspections of the flight cycles of the installation of a 11’’), for certain PW PW1519G, LPC R1 on engines that have less than certain version of EEC software. The PW1521G, PW1521GA, PW1524G, 300 flight CSN or on engines that have manufacturer has recommended that the PW1525G, PW1521G–3, PW1524G–3, less than 300 flight cycles since FAA continue to require inspections of PW1525G–3, PW1919G, PW1921G, installation of the affected EEC software. the LPC R1 within the next 50 flight PW1922G, PW1923G, and PW1923G–A cycles for engines with low CSN and to model turbofan engines. AD 2019–19– FAA’s Determination add engines that have accumulated less 11 required initial and repetitive The FAA is issuing this AD because than 300 flight cycles since installation borescope inspections of the LPC IGV it evaluated all the relevant information of the affected software to the and the LPC R1 and, depending on the and determined the unsafe condition applicability of this AD. In addition to results of the inspections, possible described previously is likely to exist or the failures of the LPC R1 in flight, replacement of the LPC. AD 2019–19–11 develop in other products of the same inspections mandated by AD 2019–19– resulted from two in-flight shutdowns type design. 11 have found cracks in the LPC R1 on (IFSDs) that occurred as the result of two zero time spare engines affected by AD Requirements failures of the LPC R1. The FAA issued that AD. Both engines also had AD 2019–19–11 to prevent failure of the This AD requires initial and repetitive accumulated less than 300 flight CSN. LPC R1, which could result in borescope inspections of the LPC R1 The manufacturer has recommended uncontained release of the LPC R1, and, depending on the results of the inspecting these engines within 15 flight damage to the engine, damage to the inspections, replacement of the LPC. cycles. airplane, and loss of control of the Interim Action The FAA has adopted these airplane. recommendations. Based on current The FAA considers this AD interim operational usage of the affected Actions Since AD 2019–19–11 Was action. The investigation into the airplanes, 15 flight cycles equates to Issued failures on the PW PW1524G model approximately 2 to 3 operating days and Since the FAA issued AD 2019–19– turbofan engines is on-going and the 50 flight cycles equates to 11, another LPC R1 failure occurred that FAA may pursue further rulemaking approximately 7 to 10 operating days. resulted in an IFSD of the engine and action at a later date. Therefore, the FAA has determined that diversion of the airplane. This failure FAA’s Justification and Determination low flight cycle engines, as well as those occurred on an engine with more than of the Effective Date with recently installed software, require 300 flight cycles since new (CSN) inspections within the next 50 flight accumulated but fewer than 300 flight Section 553(b)(3)(B) of the cycles from the effective date of this AD, cycles with a certain version (v2.11.7 or Administrative Procedure Act (APA) (5 while zero time spare engines require v2.11.8) of electronic engine control U.S.C.) authorizes agencies to dispense inspection within 15 flight cycles from (EEC) software installed. In addition, the with notice and comment procedures the effective date of this AD. Because of inspections required by AD 2019–19–11 for rules when the agency, for ‘‘good the need for operators to begin the led to cracks being discovered in the cause,’’ finds that those procedures are required inspections within 15 or 50 LPC R1 on two other affected engines. ‘‘impracticable, unnecessary, or contrary flight cycles, the FAA has made this AD These cracks were found on LPC R1s to the public interest.’’ Under this effective upon publication in the installed on ‘‘zero time spare engines’’ section, an agency, upon finding good Federal Register. Accordingly, the FAA (spare engines installed on airplanes cause, may issue a final rule without determined that the risk of operation of already in service) with fewer than 50 seeking comment prior to the the affected engines without initial and flight CSN. Because of these additional rulemaking. Similarly, Section 553(d) of repetitive inspections of the LPC R1 is findings, the FAA will continue to the APA authorizes agencies to make unacceptable. require inspection of the LPC R1 within rules effective in less than 30 days, The FAA considers the need for 50 flight cycles for certain engines while upon a finding of good cause. initial and repetitive inspections of the reducing compliance time to 15 flight An unsafe condition exists that LPC R1 to be an urgent safety issue. cycles for certain other affected engines. requires the immediate adoption of this Accordingly, notice and opportunity for In addition, inspections of the LPC AD without providing an opportunity prior public comment are impracticable IGV stem for proper alignment, required for public comments prior to adoption. and contrary to public interest pursuant by AD 2019–19–11, have not detected The FAA has found that the risk to the to 5 U.S.C. 553(b)(3)(B). In addition, for any misalignment of the LPC IGV stem. flying public justifies waiving notice the reasons stated above, the FAA finds The FAA agrees with the manufacturer’s and comment prior to adoption of this that good cause exists pursuant to 5 determination that alignment of the LPC rule. In addition to two recent failures U.S.C. 553(d) for making this IGV stem is not linked to the unsafe of the LPC R1 installed on PW1524G– amendment effective in less than 30 condition represented by this LPC R1 3 model turbofan engines, an additional days. failure. The FAA is therefore not in-flight failure of the LPC occurred on Comments Invited requiring inspection of the LPC IGV October 15, 2019. LPC rotor failures can stem in this AD. The FAA is issuing this release high-energy debris from the This AD is a final rule that involves AD to address the unsafe condition on engine and damage the airplane (see AC requirements affecting flight safety, and these products. 39–8, ‘‘Continued Airworthiness the FAA did not provide you with Assessments of Powerplant and notice and an opportunity to provide Related Service Information Auxiliary Power Unit Installations of your comments before it becomes The FAA reviewed Pratt & Whitney Transport Category Airplanes,’’ dated effective. However, the FAA invites you Service Bulletin (SB) PW1000G–A–72– September 8, 2003). to send any written data, views, or 00–0125–00A–930A–D, Issue No. 002, The earlier failures of the LPC R1 arguments about this final rule. Send dated October 22, 2019, and PW SB occurred at low flight CSN (154 and 230 your comments to an address listed PW1000G–A–72–00–0075–00B–930A– flight cycles). The most recent failure of under the ADDRESSES section. Include D, Issue No. 003, dated October 22, the LPC R1 occurred at a higher flight the docket number FAA–2019–0843 and 2019. The SBs contain procedures for CSN (1,654 flight cycles) but within 300 product identifier 2019–NE–27–AD at

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the beginning of your comments. The The FAA will post all comments Costs of Compliance FAA specifically invites comments on received, without change, to https:// the overall regulatory, economic, www.regulations.gov, including any The FAA estimates that this AD environmental, and energy aspects of personal information you provide. The affects 18 engines installed on airplanes this final rule. The FAA will consider FAA will also post a report of U.S. registry. all comments received by the closing summarizing each substantive verbal The FAA estimates the following date and may amend this final rule contact received about this final rule. costs to comply with this AD: because of those comments.

ESTIMATED COSTS

Cost per Cost on U.S. Action Labor cost Parts cost product operators

Borescope inspection per inspection cycle .... 2 work-hours × $85 per hour = $170 ...... 0 $170 $3,060

The FAA estimates the following results of the borescope inspections. number of aircraft that might need these costs to do any necessary replacements The FAA has no way of determining the replacements: that would be required based on the

ON-CONDITION COSTS

Cost per Action Labor cost Parts cost product

Replace LPC ...... 40 work-hours × $85 per hour = $3,400 ...... $156,000 $159,400

Authority for This Rulemaking Regulatory Findings FR 50719, September 26, 2019) and adding the following new AD: Title 49 of the United States Code This AD will not have federalism specifies the FAA’s authority to issue implications under Executive Order 2019–21–11 Pratt & Whitney: Amendment 39–19777; Docket No. FAA–2019–0843; rules on aviation safety. Subtitle I, 13132. This AD will not have a Product Identifier 2019–NE–27–AD. Section 106, describes the authority of substantial direct effect on the States, on the FAA Administrator. Subtitle VII, the relationship between the national (a) Effective Date government and the States, or on the Aviation Programs, describes in more This AD is effective October 29, 2019. distribution of power and detail the scope of the Agency’s responsibilities among the various (b) Affected ADs authority. levels of government. This AD replaces AD 2019–19–11, The FAA is issuing this rulemaking For the reasons discussed above, I Amendment 39–19747 (84 FR 50719, under the authority described in certify that this AD: September 26, 2019). Subtitle VII, Part A, Subpart III, Section (1) Is not a ‘‘significant regulatory (c) Applicability 44701, ‘‘General requirements.’’ Under action’’ under Executive Order 12866, that section, Congress charges the FAA (2) Will not affect intrastate aviation This AD applies to Pratt & Whitney Model with promoting safe flight of civil in Alaska, and PW1519G, PW1521G, PW1521GA, PW1524G, aircraft in air commerce by prescribing PW1525G, PW1521G–3, PW1524G–3, List of Subjects in 14 CFR Part 39 PW1525G–3, PW1919G, PW1921G, regulations for practices, methods, and Air transportation, Aircraft, Aviation PW1922G, PW1923G, and PW1923G–A procedures the Administrator finds model turbofan engines that have necessary for safety in air commerce. safety, Incorporation by reference, accumulated fewer than 300 flight cycles This regulation is within the scope of Safety. since new (CSN) or that have accumulated that authority because it addresses an Adoption of the Amendment fewer than 300 flight cycles since installation unsafe condition that is likely to exist or of v2.11.7 or v2.11.8 electronic engine develop on products identified in this Accordingly, under the authority control (EEC) software. rulemaking action. delegated to me by the Administrator, the FAA amends part 39 of the Federal (d) Subject This AD is issued in accordance with Aviation Regulations (14 CFR part 39) as Joint Aircraft System Component (JASC) authority delegated by the Executive follows: Code 7230, Turbine Engine Compressor Director, Aircraft Certification Service, Section. as authorized by FAA Order 8000.51C. PART 39—AIRWORTHINESS (e) Unsafe Condition In accordance with that order, issuance DIRECTIVES of ADs is normally a function of the This AD was prompted by a recent in-flight Compliance and Airworthiness ■ 1. The authority citation for part 39 shutdown due to failure of the low-pressure Division, but during this transition continues to read as follows: compressor (LPC) rotor 1 (R1) and by findings of cracked LPC R1s during period, the Executive Director has Authority: 49 U.S.C. 106(g), 40113, 44701. inspections. The FAA is issuing this AD to delegated the authority to issue ADs § 39.13 [Amended] prevent failure of the LPC R1. The unsafe applicable to engines, propellers, and condition, if not addressed, could result in associated appliances to the Manager, ■ 2. The FAA amends § 39.13 by uncontained release of the LPC R1, damage Engine and Propeller Standards Branch, removing Airworthiness Directive (AD) to the engine, damage to the airplane, and Policy and Innovation Division. 2019–19–11, Amendment 39–19747 (84 loss of control of the airplane.

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(f) Compliance send your request to your principal inspector Administration, 10903 New Hampshire Comply with this AD within the or local Flight Standards District Office, as Ave., Bldg. 66, Rm. 4545, Silver Spring, compliance times specified, unless already appropriate. If sending information directly MD 20993–0002, 240–402–6357, done. to the manager of the certification office, [email protected]. send it to the attention of the person (g) Required Actions identified in paragraph (j) of this AD. You SUPPLEMENTARY INFORMATION: (1) Except for those engines identified in may email your request to: ANE–AD–AMOC@ I. Background paragraph (g)(2) of this AD, borescope inspect faa.gov. the LPC R1 for damage and cracks at the (2) Before using any approved AMOC, Upon request, FDA has classified the locations in paragraph (g)(1)(iv) of this AD as notify your appropriate principal inspector, continuous glucose monitor data follows: or lacking a principal inspector, the manager management system as class I (general (i) For engines that have accumulated of the local flight standards district office/ controls), which we have determined fewer than 300 flight cycles since new (CSN), certificate holding district office. will provide a reasonable assurance of inspect within 50 flight cycles from (j) Related Information safety and effectiveness. In addition, we September 26, 2019 (the effective date of AD For more information about this AD, believe this action will enhance 2019–19–11). patients’ access to beneficial innovation, (ii) For engines that have accumulated contact Kevin M. Clark, Aerospace Engineer, fewer than 300 flight cycles since installation ECO Branch, FAA, 1200 District Avenue, in part by reducing regulatory burdens of v2.11.7 or v2.11.8 electronic engine Burlington, MA 01803; phone: 781–238– by placing the device into a lower control (EEC) software, inspect within 50 7088; fax: 781–238–7199; email: device class than the automatic class III flight cycles from the effective date of this [email protected]. assignment. AD. (k) Material Incorporated by Reference The automatic assignment of class III (iii) Thereafter, at intervals not to exceed occurs by operation of law and without None. 50 flight cycles until the engine accumulates any action by FDA, regardless of the 300 flight CSN or accumulates 300 flight Issued in Burlington, Massachusetts, on level of risk posed by the new device. cycles since the installation of v2.11.7 or October 25, 2019. Any device that was not in commercial v2.11.8 EEC software, whichever occurs later, Karen M. Grant, distribution before May 28, 1976, is repeat this borescope inspection for damage Acting Manager, Engine & Propeller automatically classified as, and remains and cracks at the locations in paragraph Standards Branch, Aircraft Certification (g)(1)(iv) of this AD. within, class III and requires premarket Service. (iv) Perform the borescope inspection approval unless and until FDA takes an required by paragraphs (g)(1)(i) through (iii) [FR Doc. 2019–23715 Filed 10–25–19; 4:15 pm] action to classify or reclassify the device of this AD at the following locations: BILLING CODE 4910–13–P (see 21 U.S.C. 360c(f)(1)). We refer to (A) the blades tips; these devices as ‘‘postamendments (B) the leading edge; devices’’ because they were not in (C) the leading edge fillet to rotor platform DEPARTMENT OF HEALTH AND commercial distribution prior to the radius; and HUMAN SERVICES date of enactment of the Medical Device (D) the airfoil convex side root fillet to rotor platform radius. Amendments of 1976, which amended (2) For all affected PW model turbofan Food and Drug Administration the Federal Food, Drug, and Cosmetic engines installed as a ‘‘zero time spare,’’ Act (FD&C Act). except for PW1519G, PW1521GA and 21 CFR Part 862 FDA may take a variety of actions in PW1919G model turbofan engines, within 15 [Docket No. FDA–2019–N–2484] appropriate circumstances to classify or flight cycles from the effective date of this reclassify a device into class I or II. We AD, and thereafter at intervals not to exceed Medical Devices; Clinical Chemistry may issue an order finding a new device 15 flight cycles until the engine accumulates and Clinical Toxicology Devices; to be substantially equivalent under 300 flight CSN, perform the borescope section 513(i) of the FD&C Act (21 inspections required by paragraph (g)(1) of Classification of the Continuous this AD. Glucose Monitor Data Management U.S.C. 360c(i)) to a predicate device that (3) As the result of the inspections required System does not require premarket approval. by paragraphs (g)(1) and (2) of this AD, before We determine whether a new device is further flight, remove and replace the LPC if: AGENCY: Food and Drug Administration, substantially equivalent to a predicate (i) there is damage on an LPC R1 that HHS. by means of the procedures for exceeds serviceable limits; or ACTION: Final order. premarket notification under section (ii) there is any crack in the LPC R1. 510(k) of the FD&C Act (21 U.S.C. 360(k) Note 1 to paragraph (g): Guidance on SUMMARY: The Food and Drug and part 807 (21 CFR part 807). determining serviceable limits can be found Administration (FDA or we) is FDA may also classify a device in PW Service Bulletin (SB) PW1000G–A– classifying the continuous glucose through ‘‘De Novo’’ classification, a 72–00–0125–00A–930A–D, Issue No. 002, monitor data management system into common name for the process dated October 22, 2019, and PW SB class I (general controls). We are taking authorized under section 513(f)(2) of the PW1000G–A–72–00–0075–00B–930A–D, this action because we have determined Issue No. 003, dated October 22, 2019. FD&C Act. Section 207 of the Food and that classifying the device into class I Drug Administration Modernization Act (h) Definition (general controls) will provide a of 1997 established the first procedure For the purpose of this AD, a ‘‘zero time reasonable assurance of safety and for De Novo classification (Pub. L. 105– spare’’ is an engine that had zero flight hours effectiveness of the device. We believe 115). Section 607 of the Food and Drug time-in-service when it was installed on an this action will also enhance patients’ Administration Safety and Innovation airplane after the airplane had entered access to beneficial innovative devices, Act modified the De Novo application service. in part by reducing regulatory burdens. process by adding a second procedure (i) Alternative Methods of Compliance DATES: This order is effective October (Pub. L. 112–144). A device sponsor (AMOCs) 29, 2019. The classification was may utilize either procedure for De (1) The Manager, ECO Branch, FAA, has applicable on August 19, 2014. Novo classification. the authority to approve AMOCs for this AD, FOR FURTHER INFORMATION CONTACT: Under the first procedure, the person if requested using the procedures found in 14 Ryan Lubert, Center for Devices and submits a 510(k) for a device that has CFR 39.19. In accordance with 14 CFR 39.19, Radiological Health, Food and Drug not previously been classified. After

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receiving an order from FDA classifying the De Novo process, the device can information submitted in the request, the device into class III under section serve as a predicate for future devices of we determined that the device can be 513(f)(1) of the FD&C Act, the person that type, including for 510(k)s (see 21 classified into class I. FDA has then requests a classification under U.S.C. 360c(f)(2)(B)(i)). As a result, other determined that general controls will section 513(f)(2). device sponsors do not have to submit provide reasonable assurance of the Under the second procedure, rather a De Novo request or premarket safety and effectiveness of the device. than first submitting a 510(k) and then approval application in order to market Therefore, on August 19, 2014, FDA a request for classification, if the person a substantially equivalent device (see 21 issued an order to the requestor determines that there is no legally U.S.C. 360c(i), defining ‘‘substantial classifying the device into class I. FDA marketed device upon which to base a equivalence’’). Instead, sponsors can use is codifying the classification of the determination of substantial the 510(k) process, when necessary, to device by adding 21 CFR 862.2120. We equivalence, that person requests a market their device. have named the generic type of device classification under section 513(f)(2) of continuous glucose monitor data II. De Novo Classification the FD&C Act. management system, and it is identified Under either procedure for De Novo On April 22, 2014, DEXCOM, Inc., as an electronic device intended to classification, FDA shall classify the submitted a request for De Novo acquire, process, and correlate device by written order within 120 days. classification of the STUDIO on the retrospective data from a continuous The classification will be according to Cloud Data Management Software. FDA glucose monitoring device. This device the criteria under section 513(a)(1) of reviewed the request in order to classify is intended to be used by patients or the FD&C Act. Although the device was the device under the criteria for their healthcare providers when automatically within class III, the De classification set forth in section determining therapeutic strategies. A Novo classification is considered to be 513(a)(1) of the FD&C Act. continuous glucose monitor data the initial classification of the device. We classify devices into class I if management system is not a drug dose We believe this De Novo classification general controls are sufficient to provide calculator and does not provide will enhance patients’ access to reasonable assurance of the safety and treatment recommendations. beneficial innovation, in part by effectiveness of the device for its FDA has identified the following risks reducing regulatory burdens. When FDA intended use (see 21 U.S.C. to health associated specifically with classifies a device into class I or II via 360c(a)(1)(B)). After review of the this type of device in table 1.

TABLE 1—CONTINUOUS GLUCOSE MONITOR DATA MANAGEMENT SYSTEM RISKS AND MITIGATION MEASURES

Identified risks Mitigation measures

Device malfunction (e.g., incorrect data analysis, etc.) ...... General controls, including design controls.

Section 510(l)(1) of the FD&C Act (OMB) under the Paperwork Reduction PART 862—CLINICAL CHEMISTRY provides that a device within a type that Act of 1995 (44 U.S.C. 3501–3520). The AND CLINICAL TOXICOLOGY has been classified into class I under collections of information in the DEVICES section 513 of the FD&C Act is exempt guidance document ‘‘De Novo from premarket notification under Classification Process (Evaluation of ■ 1. The authority citation for part 862 section 510(k), unless the device is of Automatic Class III Designation)’’ have continues to read as follows: substantial importance in preventing been approved under OMB control impairment of human health or presents Authority: 21 U.S.C. 351, 360, 360c, 360e, number 0910–0844; the collections of 360j, 360l, 371. a potentially unreasonable risk of illness information in 21 CFR part 814, or injury (21 U.S.C. 360(l)(1)). Devices subparts A through E, regarding ■ 2. Add § 862.2120 to subpart C to read within this type are exempt from the premarket approval, have been as follows: premarket notification requirements under section 510(k), subject to the approved under OMB control number § 862.2120 Continuous glucose monitor limitations of exemptions in 21 CFR 0910–0231; the collections of data management system. 862.9. information in part 807, subpart E, regarding premarket notification (a) Identification. A continuous III. Analysis of Environmental Impact submissions, have been approved under glucose monitor data management system is an electronic device intended The Agency has determined under 21 OMB control number 0910–0120; and to acquire, process, and correlate CFR 25.34(b) that this action is of a type the collections of information in 21 CFR retrospective data from a continuous that does not individually or part 820, regarding the quality system glucose monitoring device. This device cumulatively have a significant effect on regulation, including recordkeeping for is intended to be used by patients or the human environment. Therefore, design controls, have been approved their healthcare providers when neither an environmental assessment under OMB control number 0910–0073. determining therapeutic strategies. A nor an environmental impact statement continuous glucose monitor data is required. List of Subjects in 21 CFR Part 862 management system is not a drug dose IV. Paperwork Reduction Act of 1995 Medical devices. calculator and does not provide treatment recommendations. This final order refers to previously Therefore, under the Federal Food, approved collections of information Drug, and Cosmetic Act and under (b) Classification. Class I (general found in other FDA regulations and authority delegated to the Commissioner controls). The device is exempt from the guidance. These collections of of Food and Drugs, 21 CFR part 862 is premarket notification procedures in information are subject to review by the amended as follows: subpart E of part 807 of this chapter, Office of Management and Budget subject to the limitations in § 862.9.

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Dated: October 23, 2019. II. Background Information and period each of these 2 days: 8 a.m. to 4 Lowell J. Schiller, Regulatory History p.m. The safety zone will cover navigable Principal Associate Commissioner for Policy. The Coast Guard is issuing this waters within a 500-yard radius of [FR Doc. 2019–23471 Filed 10–28–19; 8:45 am] temporary rule without prior notice and BILLING CODE 4164–01–P Walan Point, Indian Island. opportunity to comment pursuant to The duration of this regulation is authority under section 4(a) of the intended to protect personnel, vessels, Administrative Procedure Act (APA) (5 and the marine environment in these U.S.C. 553(b)). This provision navigable waters while naval training DEPARTMENT OF HOMELAND authorizes an agency to issue a rule SECURITY operations are taking place. No vessel or without prior notice and opportunity to person will be permitted to enter the comment when the agency for good Coast Guard safety zone without obtaining cause finds that those procedures are permission from the COTP or a ‘‘impracticable, unnecessary, or contrary 33 CFR Part 165 designated representative. to the public interest.’’ Under 5 U.S.C. 553(b)(B), the Coast Guard finds that V. Regulatory Analyses [Docket Number USCG–2019–0857] good cause exists for not publishing a We developed this rule after notice of proposed rulemaking (NPRM) considering numerous statutes and RIN 1625–AA00 with respect to this rule because issuing Executive orders related to rulemaking. an NPRM is impracticable. The Coast Below we summarize our analyses Safety Zone; Naval Training Guard received notification of these based on a number of these statutes and Operations, U.S. Naval Magazine naval training operations from the U.S. Executive orders, and we discuss First Indian Island, WA Navy on October 7, 2019, and we must Amendment rights of protestors. take action by October 30, 2019, to AGENCY: Coast Guard, DHS. protect the public from potential A. Regulatory Planning and Review ACTION: Temporary final rule. hazards implicated by these training Executive Orders 12866 and 13563 operations. Delaying issuance of this direct agencies to assess the costs and SUMMARY: The Coast Guard is temporary final rule to publish an benefits of available regulatory establishing a temporary safety zone for NPRM and consider comments in alternatives and, if regulation is navigable waters within a 500-yard response to the NPRM is impracticable, necessary, to select regulatory radius of Walan Point, Indian Island, because the safety zone must be in place approaches that maximize net benefits. WA. This safety zone is needed to for the operation, which begins on Executive Order 13771 directs agencies protect personnel, vessels, and the October 30, 2019. to control regulatory costs through a marine environment from potential Under 5 U.S.C. 553(d)(3), the Coast budgeting process. This rule has not hazards due to naval training Guard finds that good cause exists for been designated a ‘‘significant operations. Entry of vessels or persons making this rule effective less than 30 regulatory action,’’ under Executive into this zone is prohibited unless days after publication in the Federal Order 12866. Accordingly, this rule has specifically authorized by the Captain of Register. Delaying the effective date of not been reviewed by the Office of the Port Puget Sound. this rule would be impracticable Management and Budget (OMB), and DATES: This rule is effective from 8 a.m. because of the danger associated with pursuant to OMB guidance it is exempt on October 30, 2019, to 4 p.m. on these training operations, which may from the requirements of Executive October 31, 2019, and will be subject to include but is not limited to high-speed Order 13771. enforcement each of these days from 8 maneuvers, simulated attacks, and the This regulatory action determination a.m. to 4 p.m. firing of blank ammunition. This rule is based on the size, location, duration must be effective starting October 30, of the safety zone. Vessel traffic will be ADDRESSES: To view documents 2019, to protect vessels, personnel, and able to safely transit around this safety mentioned in this preamble as being the marine environment from potential zone which would impact a small available in the docket, go to https:// hazards associated with these training designated area of the waterway on the www.regulations.gov, type USCG–2019– operations. western side of U.S. Naval Magazine 0857 in the ‘‘SEARCH’’ box and click Indian Island. Moreover, the Coast III. Legal Authority and Need for Rule ‘‘SEARCH.’’ Click on Open Docket Guard will issue a Broadcast Notice to Folder on the line associated with this The Coast Guard is issuing this rule Mariners via VHF–FM marine channel rule. under authority in 46 U.S.C. 70034 16 about the zone, and the rule will FOR FURTHER INFORMATION CONTACT: If (formerly 33 U.S.C. 1231). The Captain allow vessels to seek permission to enter you have questions on this rule, call or of the Port Puget Sound (COTP) has the zone. determined that potential hazards exist email Lieutenant Ellie Wu, Sector Puget B. Impact on Small Entities Sound Waterways Management with this naval training operation. This Division, U.S. Coast Guard; telephone rule is needed to protect personnel, The Regulatory Flexibility Act of (206) 217–6051, email vessels, and the marine environment in 1980, 5 U.S.C. 601–612, as amended, [email protected]. the navigable waters within the safety requires Federal agencies to consider zone from potential hazards posed by the potential impact of regulations on SUPPLEMENTARY INFORMATION: the naval training operation. small entities during rulemaking. The I. Table of Abbreviations term ‘‘small entities’’ comprises small IV. Discussion of the Rule businesses, not-for-profit organizations CFR Code of Federal Regulations DHS Department of Homeland Security This rule establishes a safety zone that are independently owned and FR Federal Register regulation from 10 a.m. on October 30, operated and are not dominant in their NPRM Notice of proposed rulemaking 2019, to 4 p.m. on October 31, 2019. fields, and governmental jurisdictions § Section This regulation will only be subject to with populations of less than 50,000. U.S.C. United States Code enforcement for the following 8-hour The Coast Guard certifies under 5 U.S.C.

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605(b) that this rule will not have a direct effect on one or more Indian List of Subjects in 33 CFR Part 165 significant economic impact on a tribes, on the relationship between the substantial number of small entities. Federal Government and Indian tribes, Harbors, Marine safety, Navigation While some owners or operators of or on the distribution of power and (water), Reporting and recordkeeping vessels intending to transit the safety responsibilities between the Federal requirements, Security measures, zone may be small entities, for the Government and Indian tribes. If you Waterways. reasons stated in section V.A above, this believe this rule has implications for For the reasons discussed in the rule will not have a significant federalism or Indian tribes, please preamble, the Coast Guard amends 33 economic impact on any vessel owner contact the person listed in the FOR CFR part 165 as follows: or operator. FURTHER INFORMATION CONTACT section Under section 213(a) of the Small above. PART 165—REGULATED NAVIGATION Business Regulatory Enforcement AREAS AND LIMITED ACCESS AREAS Fairness Act of 1996 (Pub. L. 104–121), E. Unfunded Mandates Reform Act we want to assist small entities in ■ 1. The authority citation for part 165 The Unfunded Mandates Reform Act understanding this rule. If the rule continues to read as follows: would affect your small business, of 1995 (2 U.S.C. 1531–1538) requires organization, or governmental Federal agencies to assess the effects of Authority: 46 U.S.C. 70034, 70051; 33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; jurisdiction and you have questions their discretionary regulatory actions. In particular, the Act addresses actions Department of Homeland Security Delegation concerning its provisions or options for No. 0170.1. compliance, please contact the person that may result in the expenditure by a listed in the FOR FURTHER INFORMATION State, local, or tribal government, in the ■ 2. Add § 165.T13–0857 to read as CONTACT section. aggregate, or by the private sector of follows: Small businesses may send comments $100,000,000 (adjusted for inflation) or on the actions of Federal employees more in any one year. Though this rule § 165.T13–0857 Safety Zone; Naval who enforce, or otherwise determine Training Operations, U.S. Naval Magazine will not result in such an expenditure, Indian Island, Washington. compliance with, Federal regulations to we do discuss the effects of this rule the Small Business and Agriculture elsewhere in this preamble. (a) Location. The following area is a Regulatory Enforcement Ombudsman safety zone: All navigable waters within and the Regional Small Business F. Environment a 500 yards radius of Walan Point, Regulatory Fairness Boards. The Indian Island, WA. We have analyzed this rule under Ombudsman evaluates these actions (b) Definitions. As used in this annually and rates each agency’s Department of Homeland Security section, designated representative responsiveness to small business. If you Directive 023–01 and Environmental means a Coast Guard Patrol wish to comment on actions by Planning COMDTINST 5090.1 (series), Commander, including a Coast Guard employees of the Coast Guard, call which guide the Coast Guard in coxswain, petty officer, or other officer 1–888–REG–FAIR (1–888–734–3247). complying with the National operating a Coast Guard vessel and a The Coast Guard will not retaliate Environmental Policy Act of 1969(42 Federal, State, and local officer against small entities that question or U.S.C. 4321–4370f), and have designated by or assisting the Captain of complain about this rule or any policy determined that this action is one of a the Port Puget Sound in the enforcement or action of the Coast Guard. category of actions that do not individually or cumulatively have a of the safety zone. C. Collection of Information significant effect on the human (c) Regulations. In accordance with This rule will not call for a new environment. This rule involves a safety the general regulations in Part 165, collection of information under the zone lasting only 16 hours in total, Subpart C, no persons or vessels may Paperwork Reduction Act of 1995 (44 which will prohibit entry within enter or remain in the safety zone U.S.C. 3501–3520). designated zone during naval training created in this unless authorized by the operations. It is categorically excluded Captain of the Port or their designated D. Federalism and Indian Tribal representative. For permission to enter Governments from further review under paragraph L60(a) in Table 3–1 of U.S. Coast Guard the safety zone, contact the on-scene A rule has implications for federalism Environmental Planning Implementing designated representative or Joint under Executive Order 13132, Procedures 5090.1. A Record of Harbor Operations Center via VHF CH16 Federalism, if it has a substantial direct Environmental Consideration or at 206–217–6002. Those in the safety effect on the States, on the relationship supporting this determination is zone must comply with all lawful orders between the national government and available in the docket where indicated or directions given to them by the the States, or on the distribution of Captain of the Port or their designated under ADDRESSES. power and responsibilities among the representative. various levels of government. We have G. Protest Activities (d) Enforcement periods. This section analyzed this rule under that Order and will be enforced from 8 a.m. to 4 p.m. have determined that it is consistent The Coast Guard respects the First Amendment rights of protesters. daily, on October 30, 2019, and October with the fundamental federalism 31, 2019. principles and preemption requirements Protesters are asked to contact the described in Executive Order 13132. person listed in the FOR FURTHER Dated: October 21, 2019. Also, this rule does not have tribal INFORMATION CONTACT section to L.A. Sturgis, implications under Executive Order coordinate protest activities so that your Captain, U.S. Coast Guard, Captain of the 13175, Consultation and Coordination message can be received without Port Puget Sound. with Indian Tribal Governments, jeopardizing the safety or security of [FR Doc. 2019–23401 Filed 10–28–19; 8:45 am] because it does not have a substantial people, places or vessels. BILLING CODE 9110–04–P

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DEPARTMENT OF HOMELAND opportunity to comment pursuant to transiting through the RNA all vessels SECURITY authority under section 4(a) of the greater than 500 gross tons must have Administrative Procedure Act (APA) (5 one assist tug, establish and maintain Coast Guard U.S.C. 553(b)). This provision communications with the designated authorizes an agency to issue a rule representative of the COTP via VHF–FM 33 CFR Part 165 without prior notice and opportunity to radio on channel 13, and not exceed a comment when the agency for good speed of 8 knots, unless greater speeds [Docket Number USCG–2019–0803] cause finds that those procedures are are required to maintain bare steerage. RIN 1625–AA11 ‘‘impracticable, unnecessary, or contrary Any vessel unable to meet these to the public interest.’’ Under 5 U.S.C. operating limitations may, with good Regulated Navigation Area; Saint 553(b)(B), the Coast Guard finds that cause, seek authorization from the Simons Sound, GA good cause exists for not publishing a COTP Savannah to deviate from these notice of proposed rulemaking (NPRM) requirements. AGENCY: Coast Guard, DHS. with respect to this rule because the The RNA is intended to protect ACTION: Temporary final rule. freight vessel GOLDEN RAY capsized personnel, vessels, and the marine and grounded in Saint Simons Sound, environment in these navigable waters SUMMARY: The Coast Guard is GA on September 8, 2019. Immediate and provide a safe working environment establishing a temporary regulated action is needed to aid in the directing for personnel and vessels responding to navigation area (RNA) for the navigable of vessel traffic through the Port of the M/V GOLDEN RAY casualty. waters in Saint Simons Sound, GA, as Brunswick in the vicinity of the M/V set out in the regulatory text at the end V. Regulatory Analyses GOLDEN RAY. It is impracticable to of this document. Entry of vessels publish an NPRM because we must We developed this rule after greater than 500 gross tons into this area establish this RNA by September 19, considering numerous statutes and is prohibited, unless specifically 2019. Executive orders related to rulemaking. authorized by the Captain of the Port Under 5 U.S.C. 553(d)(3), the Coast Below we summarize our analyses (COTP) Savannah. The RNA is needed Guard finds that good cause exists for based on a number of these statutes and to protect personnel, vessels, and the making this rule effective less than 30 Executive orders, and we discuss First marine environment from potential days after publication in the Federal Amendment rights of protestors. hazards created by salvage and Register. Delaying the effective date of A. Regulatory Planning and Review pollution response operations taking this rule would be impracticable place near the grounded freight vessel because immediate action is needed to Executive Orders 12866 and 13563 GOLDEN RAY. respond to the potential hazards direct agencies to assess the costs and DATES: This rule is effective without associated with operations in response benefits of available regulatory actual notice from October 29, 2019 to the M/V GOLDEN RAY casualty. alternatives and, if regulation is through January 29, 2021. For the necessary, to select regulatory purposes of enforcement, actual notice III. Legal Authority and Need for Rule approaches that maximize net benefits. will be used from September 19, 2019 The Coast Guard is issuing this rule Executive Order 13771 directs agencies through October 29, 2019. under authority in 46 U.S.C. 70034 to control regulatory costs through a budgeting process. This rule has not ADDRESSES: To view documents (previously 33 U.S.C. 1231). The COTP mentioned in this preamble as being Savannah has determined that an RNA been designated a ‘‘significant available in the docket, go to https:// is needed to allow vessels greater than regulatory action,’’ under Executive www.regulations.gov, type USCG–2019– 500 gross tons to transit safely through Order 12866. Accordingly, this rule has 0794 in the ‘‘SEARCH’’ box and click the area. This rule is needed to protect not been reviewed by the Office of ‘‘SEARCH.’’ Click on Open Docket personnel, vessels, and the marine Management and Budget (OMB), and Folder on the line associated with this environment in the navigable waters pursuant to OMB guidance it is exempt rule. within the RNA during salvage and from the requirements of Executive pollution operations in response to the Order 13771. FOR FURTHER INFORMATION CONTACT: If M/V GOLDEN RAY casualty. This regulatory action determination you have questions on this rule, call or is based on the RNA size, location, email LT Lauren Bloch, Marine Safety IV. Discussion of the Rule notice, duration and provided Unit Savannah Office of Waterways This rule establishes an RNA on exceptions. Vessel traffic will be able to Management, Coast Guard; telephone September 19, 2019. The RNA will safely transit through this RNA which 912–652–4353, extension 232, or email cover all navigable waters in Saint would impact a small designated area of [email protected]. Simons Sound, GA bounded by a line Saint Simons Sound, GA; the size and SUPPLEMENTARY INFORMATION: drawn from a point located at location of this RNA is limited to an ° ′ ″ ° ′ ″ I. Table of Abbreviations 31 07 48.84 N, 081 23 30.67 W, thence area in the immediate vicinity of the to 31°07′29.38″ N, 081°23′37.15″ W, grounded M/V GOLDEN RAY. The CFR Code of Federal Regulations thence to 31°07′51.43″ N, 081°16′23.57″ Coast Guard will provide mariners DHS Department of Homeland Security W, thence to 31°08′07.28″ N, notice of the RNA through a Broadcast FR Federal Register 081°24′48.08″ W, thence to 31°07′22.87″ Notice to Mariners via VHF–FM radio NPRM Notice of proposed rulemaking N, 081°24′38.78″ W, thence to 31°07′40″ channel 16. Additionally, the RNA is RNA Regulated Navigation Area ° ′ ″ COTP Captain of the Port N, 081 25 01 W. No vessel greater than limited in duration. It will remain in § Section 500 gross tons may enter the RNA effect until the COTP Savannah U.S.C. United States Code without the prior approval of the COTP determines the M/V GOLDEN RAY is no Savannah. Upon approval from the longer a hazard to the safety of persons II. Background Information and COTP each vessel will be provided an and vessels transiting the area. Lastly, Regulatory History authorized timeframe to transit the this RNA will allow vessels to seek The Coast Guard is issuing this RNA. Only one-way traffic is allowed permission from the COTP to enter the temporary rule without prior notice and through the RNA at all times. When area.

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B. Impact on Small Entities various levels of government. We have Protesters are asked to call or email the The Regulatory Flexibility Act of analyzed this rule under that Order and person listed in the FOR FURTHER 1980, 5 U.S.C. 601–612, as amended, have determined that it is consistent INFORMATION CONTACT section to requires Federal agencies to consider with the fundamental federalism coordinate protest activities so that your the potential impact of regulations on principles and preemption requirements message can be received without described in Executive Order 13132. small entities during rulemaking. The jeopardizing the safety or security of Also, this rule does not have tribal term ‘‘small entities’’ comprises small people, places or vessels. implications under Executive Order businesses, not-for-profit organizations 13175, Consultation and Coordination List of Subjects in 33 CFR Part 165 that are independently owned and with Indian Tribal Governments, Harbors, Marine safety, Navigation operated and are not dominant in their because it does not have a substantial (water), Reporting and recordkeeping fields, and governmental jurisdictions direct effect on one or more Indian requirements, Security measures, with populations of less than 50,000. tribes, on the relationship between the Waterways. The Coast Guard certifies under 5 U.S.C. Federal Government and Indian tribes, For the reasons discussed in the 605(b) that this rule will not have a or on the distribution of power and preamble, the Coast Guard amends 33 significant economic impact on a responsibilities between the Federal CFR part 165 as follows: substantial number of small entities. Government and Indian tribes. If you While some owners or operators of believe this rule has implications for PART 165—REGULATED NAVIGATION vessels intending to transit the RNA federalism or Indian tribes, please call AREAS AND LIMITED ACCESS AREAS may be small entities, for the reasons or email the person listed in the FOR ■ stated in section V. A. above, this rule FURTHER INFORMATION CONTACT section 1. The authority citation for part 165 will not have a significant economic above. continues to read as follows: impact on any vessel owner or operator. Authority: 46 U.S.C. 70034, 70051; 33 CFR Under section 213(a) of the Small E. Unfunded Mandates Reform Act 1.05–1, 6.04–1, 6.04–6, and 160.5; Business Regulatory Enforcement The Unfunded Mandates Reform Act Department of Homeland Security Delegation Fairness Act of 1996 (Pub. L. 104–121), of 1995 (2 U.S.C. 1531–1538) requires No. 0170.1. we want to assist small entities in Federal agencies to assess the effects of ■ 2. Add § 165.T07–0803 to read as understanding this rule. If the rule their discretionary regulatory actions. In follows: would affect your small business, particular, the Act addresses actions organization, or governmental that may result in the expenditure by a § 165.T07–0803 Regulated navigation area; jurisdiction and you have questions State, local, or tribal government, in the Saint Simons Sound, GA. concerning its provisions or options for aggregate, or by the private sector of (a) Location. The following area is a compliance, please call or email the $100,000,000 (adjusted for inflation) or regulated navigation area (RNA): All person listed in the FOR FURTHER more in any one year. Though this rule navigable waters of Saint Simons INFORMATION CONTACT section. will not result in such an expenditure, Sound, GA bounded by a line drawn Small businesses may send comments we do discuss the effects of this rule from a point located at 31°07′48.84″ N, on the actions of Federal employees elsewhere in this preamble. 081°23′30.67″ W, thence to 31°07′29.38″ who enforce, or otherwise determine N, 081°23′37.15″ W, thence to compliance with, Federal regulations to F. Environment 31°07′51.43″ N, 081°16′23.57″ W, thence the Small Business and Agriculture We have analyzed this rule under to 31°08′07.28″ N, 081°24′48.08″ W, Regulatory Enforcement Ombudsman Department of Homeland Security thence to 31°07′22.87″ N, 081°24′38.78″ and the Regional Small Business Directive 023–01 and Environmental W, thence to 31°07′40″ N, 081°25′01″ W. Regulatory Fairness Boards. The Planning COMDTINST 5090.1 (series), All coordinates are North American Ombudsman evaluates these actions which guide the Coast Guard in Datum 1983 (NAD 83). annually and rates each agency’s complying with the National (b) Definition. As used in this section, responsiveness to small business. If you Environmental Policy Act of 1969 (42 designated representative of the Captain wish to comment on actions by U.S.C. 4321–4370f), and have of the Port Savannah (COTP) is any employees of the Coast Guard, call determined that this action is one of a Coast Guard commissioned, warrant or 1–888–REG–FAIR (1–888–734–3247). category of actions that do not petty officer, or federal, state, local The Coast Guard will not retaliate individually or cumulatively have a agency, who has been designated by the against small entities that question or significant effect on the human COTP Savannah to assist in the patrol complain about this rule or any policy environment. This rule involves an RNA or enforcement of the regulated area. or action of the Coast Guard. for the navigable waters in Saint Simons (c) Regulations. In addition to the Sound, GA bounded by a line drawn general RNA regulations in § 165.13, the C. Collection of Information from a point located at 31°07′48.84″ N, regulations in paragraphs (c)(1) through This rule will not call for a new 081°23′30.67″ W, thence to 31°07′29.38″ (8) of this section apply to the RNA collection of information under the N, 081°23′37.15″ W, thence to described in paragraph (a) of this Paperwork Reduction Act of 1995 (44 31°07′51.43″ N, 081°16′23.57″ W, thence section. U.S.C. 3501–3520). to 31°08′07.28″ N, 081°24′48.08″ W, (1) All vessels greater than 500 gross thence to 31°07′22.87″ N, 081°24′38.78″ tons intending to transit through the D. Federalism and Indian Tribal ° ′ ″ ° ′ ″ RNA must seek prior approval from the Governments W, thence to 31 07 40 N, 081 25 01 W. It is categorically excluded from further COTP Savannah at least 24-hours in A rule has implications for federalism review under paragraph L[60a] in Table advance of the vessel’s arrival to, or under Executive Order 13132, 3–1 of U.S. Coast Guard Environmental departure from, the Port of Brunswick. Federalism, if it has a substantial direct Planning Implementing Procedures. The COTP Savannah can be contacted effect on the States, on the relationship via telephone at 614–943–5532. The between the national government and G. Protest Activities COTP Savannah’s designated the States, or on the distribution of The Coast Guard respects the First representative can be contacted on power and responsibilities among the Amendment rights of protesters. VHF–FM radio channel 13. Upon

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approval to enter the RNA, the COTP ENVIRONMENTAL PROTECTION Certain other material, such as Savannah will provide an approved AGENCY copyrighted material, is not placed on timeframe a vessel may enter the RNA. the internet and will be publicly (2) Only one-way traffic is authorized 40 CFR Part 52 available only in hard copy form. Publicly available docket materials are within the RNA at all times. [EPA–R09–OAR–2019–0147; FRL–10001– (3) All vessels greater than 500 gross 32–Region 9] available through https:// tons must obtain one assist tug while www.regulations.gov, or please contact transiting within the RNA. Air Plan Approval; California; the person identified in the FOR FURTHER (4) All vessels greater than 500 gross Calaveras County Air Pollution Control INFORMATION CONTACT section for tons must check in with the designated District additional availability information. representative via VHF–FM Channel 13 AGENCY: FOR FURTHER INFORMATION CONTACT: prior to transiting within the RNA and Environmental Protection Agency (EPA). Nancy Levin, EPA Region IX, 75 maintain communications with the Hawthorne Street, San Francisco, CA ACTION: Final rule. designated representative while 94105. By phone: (415) 972–3848 or by transiting through the RNA. SUMMARY: The Environmental Protection email at [email protected]. (5) While transiting within the RNA Agency (EPA) is taking final action to SUPPLEMENTARY INFORMATION: all vessels greater than 500 gross tons approve a revision to the Calaveras may not exceed a speed of 8 knots, Throughout this document, ‘‘we,’’ ‘‘us,’’ County Air Pollution Control District and ‘‘our’’ refer to the EPA. unless greater speeds are required to (CCAPCD) portion of the California maintain bare steerage. State Implementation Plan (SIP). This Table of Contents (6) Any vessel unable to meet these revision concerns reporting of emissions I. Proposed Action operating limitations may, upon of volatile organic compounds (VOCs) showing good cause, seek authorization II. Public Comments and EPA Responses and oxides of nitrogen (NOX) in ozone from the COTP Savannah to deviate III. EPA Action nonattainment areas. We are approving IV. Incorporation by Reference from the requirements in this section. a local rule that applies to certain V. Statutory and Executive Order Reviews (7) The operator of any vessel emission sources under the Clean Air transiting in RNA must comply with all Act (CAA or the Act). I. Proposed Action lawful directions given by the COTP or DATES: This rule will be effective on the COTP’s designated representative. The CCAPCD is a ‘‘Marginal’’ November 29, 2019. (8) The inland navigation rules in 33 nonattainment area for the 2008 and CFR subchapter E remain in effect ADDRESSES: The EPA has established a 2015 ozone national ambient air quality within the RNA and must be followed docket for this action under Docket ID standards (NAAQS). CAA section at all times. No. EPA–R09–OAR–2019–0147. All 182(a)(3)(B)(i) requires states with ozone documents in the docket are listed on nonattainment areas to require certified Dated: September 19, 2019. the https://www.regulations.gov emission statements from stationary Eric C. Jones, website. Although listed in the index, sources of VOC and NOX. Pursuant to Rear Admiral, U.S. Coast Guard, Commander, some information is not publicly this requirement, the EPA proposed to Seventh Coast Guard District. available, e.g., Confidential Business approve the following rule submitted by [FR Doc. 2019–23539 Filed 10–28–19; 8:45 am] Information (CBI) or other information the CCAPCD into the California SIP on BILLING CODE 9110–04–P whose disclosure is restricted by statute. May 8, 2019 (84 FR 20071).

Local agency Rule No. Rule title Adopted Submitted

CCAPCD ...... 513 Source Recordkeeping and Emission Statement ...... 06/26/2018 11/21/2018

Rule 513 requires the owner or II. Public Comments and EPA kept for five years. Commenter cites a operator of any stationary source that Responses prior version of the proposed rule that emits or may emit VOC or NOX to The EPA’s proposed action provided required a 2-year record retention provide the District Air Pollution a 30-day public comment period that period. Control Officer with a certified, written closed on June 7, 2019. During this Response: Generally, the EPA requires emissions statement showing actual period, we received two comments. One records retention periods for certain emissions or operational data allowing comment supported the proposed types of rules (such as NSPS and the District to estimate actual emissions action, and the EPA does not provide a NESHAP) so that an inspector can from that source. We proposed to response to this comment. The review records at a later date if any approve this rule because we remaining comment is summarized compliance issues arise with required below, with the EPA response: determined that it complies with the emission limits, control measures, or relevant CAA requirements. We Comment: The commenter states that the EPA should not approve the rule test methods. For example, if a landfill approved an earlier version of Rule 513, facility claimed to have been complying then numbered Rule 408 ‘‘Source because it does not require recordkeeping retention. The with the Municipal Solid Waste Landfill Recordkeeping and Reporting,’’ into the NSPS (40 CFR part 60, subpart WWW) SIP on May 11, 1977 (42 FR 23804). Our commenter states that New Source Performance Standard (NSPS) and in the last 5 years by routing all of its proposed action contains more National Emission Standards for collected gas to a control system information on the rule and our Hazardous Air Pollutants (NESHAP) designed and operated to reduce evaluation. rules require a 5-year record retention nonmethane organic compounds period, and that guidance documents we reference say that records should be

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(NMOC) by 98%,1 an inspector would V. Statutory and Executive Order or in any other area where the EPA or need records to verify the percentage Reviews an Indian tribe has demonstrated that a reduction of NMOC achieved by the Under the Clean Air Act, the tribe has jurisdiction. In those areas of 2 control device during that time, and Administrator is required to approve a Indian country, the rule does not have records of the average combustion SIP submission that complies with the tribal implications and will not impose temperature measured at least every 15 provisions of the Act and applicable substantial direct costs on tribal minutes to compare to the temperature Federal regulations. 42 U.S.C. 7410(k); governments or preempt tribal law as 3 during the performance test. 40 CFR 52.02(a). Thus, in reviewing SIP specified by Executive Order 13175 (65 However, unlike a rule that is submissions, the EPA’s role is to FR 67249, November 9, 2000). prohibitory in nature, i.e., that limits or approve state choices, provided that The Congressional Review Act, 5 controls the activity of a source of air they meet the criteria of the Clean Air U.S.C. 801 et seq., as added by the Small pollution and requires recordkeeping to Act. Accordingly, this action merely Business Regulatory Enforcement verify compliance with CAA approves state law as meeting Federal Fairness Act of 1996, generally provides requirements, Calaveras County Rule requirements and does not impose that before a rule may take effect, the 513 is an annual emissions reporting additional requirements beyond those agency promulgating the rule must rule that is administrative in nature and imposed by state law. For that reason, submit a rule report, which includes a does not require recordkeeping to verify this action: copy of the rule, to each House of the compliance. While the EPA generally • Is not a significant regulatory action Congress and to the Comptroller General recommends recordkeeping as a best subject to review by the Office of of the United States. The EPA will practice, the measure of compliance for Management and Budget under submit a report containing this action the source per Rule 513 is whether the Executive Orders 12866 (58 FR 51735, and other required information to the source reports its emissions annually to October 4, 1993) and 13563 (76 FR 3821, U.S. Senate, the U.S. House of the District (or State); therefore, a January 21, 2011); Representatives, and the Comptroller records retention period is not required • Is not an Executive Order 13771 (82 General of the United States prior to to determine compliance with the rule. FR 9339, February 2, 2017) regulatory publication of the rule in the Federal Further, the text of CAA section action because SIP approvals are Register. A major rule cannot take effect 182(a)(3)(B)(i) does not mention records exempted under Executive Order 12866; until 60 days after it is published in the retention requirements and the EPA is • Does not impose an information Federal Register. This action is not a aware of no regulations or guidance, collection burden under the provisions ‘‘major rule’’ as defined by 5 U.S.C. including the guidance cited in our of the Paperwork Reduction Act (44 804(2). proposed rulemaking, mandating that U.S.C. 3501 et seq.); Under section 307(b)(1) of the Clean states must impose records retention • Is certified as not having a Air Act, petitions for judicial review of requirements on sources in their SIP significant economic impact on a this action must be filed in the United submission addressing emissions substantial number of small entities States Court of Appeals for the statements under CAA section under the Regulatory Flexibility Act (5 appropriate circuit by December 30, 182(a)(3)(B)(i). U.S.C. 601 et seq.); 2019. Filing a petition for • Does not contain any unfunded reconsideration by the Administrator of III. EPA Action mandate or significantly or uniquely this final rule does not affect the finality of this action for the purposes of judicial No comments were submitted that affect small governments, as described in the Unfunded Mandates Reform Act review nor does it extend the time change our assessment of the rule as within which a petition for judicial described in our proposed action. of 1995 (Pub. L. 104–4); • Does not have federalism review may be filed, and shall not Therefore, as authorized in section postpone the effectiveness of such rule 110(k)(3) of the Act, the EPA is fully implications as specified in Executive Order 13132 (64 FR 43255, August 10, or action. This action may not be approving this rule into the California challenged later in proceedings to SIP. 1999); • Is not an economically significant enforce its requirements. (See section IV. Incorporation by Reference regulatory action based on health or 307(b)(2).) safety risks subject to Executive Order In this rule, the EPA is finalizing List of Subjects in 40 CFR Part 52 13045 (62 FR 19885, April 23, 1997); regulatory text that includes Environmental protection, Air • Is not a significant regulatory action incorporation by reference. In pollution control, Incorporation by subject to Executive Order 13211 (66 FR accordance with requirements of 1 CFR reference Intergovernmental relations, 28355, May 22, 2001); 51.5, the EPA is finalizing the • Is not subject to requirements of Nitrogen dioxide, Ozone, Reporting and incorporation by reference of the Section 12(d) of the National recordkeeping requirements, Volatile Calaveras County rule described in the Technology Transfer and Advancement organic compounds. amendments to 40 CFR part 52 set forth Act of 1995 (15 U.S.C. 272 note) because Dated: October 4, 2019. below. The EPA has made, and will application of those requirements would Deborah Jordan, continue to make, these documents be inconsistent with the Clean Air Act; available through www.regulations.gov Acting Regional Administrator, Region IX. and and at the EPA Region IX Office (please Part 52, chapter I, title 40 of the Code • Does not provide the EPA with the contact the person identified in the FOR of Federal Regulations is amended as discretionary authority to address, as FURTHER INFORMATION CONTACT section of follows: appropriate, disproportionate human this preamble for more information). health or environmental effects, using PART 52—APPROVAL AND practicable and legally permissible 1 40 CFR part 60, subpart WWW—Standards of PROMULGATION OF Performance for Municipal Solid Waste Landfills at methods, under Executive Order 12898 IMPLEMENTATION PLANS § 60.752(b)(2)(iii)(B). (59 FR 7629, February 16, 1994). 2 40 CFR 60.758(b)(2)(ii). In addition, the SIP is not approved ■ 1. The authority citation for part 52 3 40 CFR 60.758(b)(2)(i). to apply on any Indian reservation land continues to read as follows:

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Authority: 42 U.S.C. 7401 et seq. consistent with the Clean Air Act (CAA the 2010 SO2 NAAQS. See 42 U.S.C. or Act) and Federal regulations. 7407; 40 CFR 50.17.1 Subpart F—California Accordingly, in the July 31, 2018,2 DATES: This rule will be effective SIP submittal, Georgia revised Rule ■ 2. Section 52.220 is amended by November 29, 2019. 391–3–1–.02(4)(b) to provide clarity that adding paragraphs (c)(28)(iv)(E) and ADDRESSES: EPA has established a the 1971 standard continues to apply in (c)(527) to read as follows: docket for this action under Docket Georgia.3 Specifically, the changes § 52.220 Identification of plan-in part. Identification No. EPA–R04–OAR– reflect the historical and current NAAQS for SO2 and update the former * * * * * 2018–0819. All documents in the docket primary SO2 NAAQS for the 1971 (c) * * * are listed on the www.regulations.gov website. Although listed in the index, annual and 24-hour ambient air quality (28) * * * standards to be consistent with the (iv) * * * some information may not be publicly available, i.e., Confidential Business Federal regulations. The SIP submission (E) Previously approved on May 11, can be found in the docket for this 1977 in paragraph (c)(28)(iv)(A) of this Information or other information whose disclosure is restricted by statute. rulemaking at www.regulations.gov. section and now deleted with In a notice of proposed rulemaking Certain other material, such as replacement in paragraph (NPRM) published on July 2, 2019 (84 copyrighted material, is not placed on (c)(527)(i)(A)(1) of this section, Rule FR 31540), EPA proposed to approve the the internet and will be publicly 408, ‘‘Source Recordkeeping and revision to the Georgia air quality rules Reporting,’’ effective December 16, available only in hard copy form. addressing Rule 391–3–1–.02(4), 1974. Publicly available docket materials are Ambient Air Standards, into the Georgia * * * * * available either electronically through SIP.4 Comments on the NPRM were due (527) New regulations for the www.regulations.gov or in hard copy at on or before August 1, 2019. EPA following APCDs were submitted on the Air Regulatory Management Section, received no comments on the proposed November 21, 2018 by the Governor’s Air Planning and Implementation action. Consistent with the NPRM, designee. Branch, Air and Radiation Division, which contains additional detail on the (i) Incorporation by reference. (A) U.S. Environmental Protection Agency, submittal, EPA’s analysis, and EPA’s Calaveras County Air Pollution Control Region 4, 61 Forsyth Street SW, Atlanta, rationale for approval, EPA is now District. Georgia 30303–8960. EPA requests that taking final action to approve the above- (1) Rule 513, ‘‘Source Recordkeeping if at all possible, you contact the person referenced revision. listed in the FOR FURTHER INFORMATION and Emission Statement,’’ adopted on II. Incorporation by Reference June 26, 2018. CONTACT section to schedule your (2) [Reserved] inspection. The Regional Office’s In this document, EPA is finalizing (B) [Reserved] official hours of business are Monday regulatory text that includes (ii) [Reserved] through Friday 8:30 a.m. to 4:30 p.m., incorporation by reference. In excluding Federal holidays. accordance with requirements of 1 CFR [FR Doc. 2019–23377 Filed 10–28–19; 8:45 am] 51.5, EPA is finalizing the incorporation BILLING CODE 6560–50–P FOR FURTHER INFORMATION CONTACT: by reference of Georgia Rule 391–3–1– Tiereny Bell, Air Regulatory .02(4), Ambient Air Standards, Management Section, Air Planning and ENVIRONMENTAL PROTECTION paragraph (b) Sulfur Dioxide, State- Implementation Branch, Air and effective July 23, 2018, which updates AGENCY Radiation Division, Region 4, U.S. the former primary SO2 NAAQS for the Environmental Protection Agency, 61 40 CFR Part 52 1971 annual and 24-hour ambient air Forsyth Street SW, Atlanta, Georgia quality standards to be consistent with [EPA–R04–OAR–2018–0819; FRL–10001– 30303–8960. The telephone number is the Federal regulations. EPA has made, 49–Region 4] (404) 562–9088. Ms. Bell can also be and will continue to make, these reached via electronic mail at materials generally available through Air Plan Approval; Georgia; Revisions [email protected]. to Sulfur Dioxide Ambient Air Quality www.regulations.gov and at the EPA Standards SUPPLEMENTARY INFORMATION: Region 4 Office (please contact the person identified in the FOR FURTHER AGENCY: Environmental Protection I. Background INFORMATION CONTACT section of this Agency (EPA). preamble for more information). On June 22, 2010, EPA promulgated a ACTION: Final rule. Therefore, these materials have been revised primary SO2 NAAQS. The approved by EPA for inclusion in the SUMMARY: The Environmental Protection revised SO2 NAAQS is an hourly Agency (EPA) is approving a State standard of 75 parts per billion (ppb), 1 See 75 FR at 35581. No areas in Georgia were Implementation Plan (SIP) revision based on a 3-year average of the annual designated as nonattainment for the 1971 standards at the time of promulgation of the 2010 1-hour SO submitted by the State of Georgia 99th percentile of 1-hour daily 2 maximum concentrations. The June 22, annual and 24-hour SO2 standards. See id. through the Georgia Environmental 2 EPA received the SIP revision on August 2, Protection Division (EPD) through a 2010 action that promulgated the 2018. letter dated July 31, 2018. EPA is revised primary SO2 NAAQS also 3 See 40 CFR 81.311 for designated areas in the approving into the SIP a modification to addressed revocation of the 1971 24- State of Georgia for the 2010 SO2 standard. EPA notes that Floyd County is the only county in Georgia’s Ambient Air Quality hour and annual primary SO2 NAAQS. See 75 FR 35520. Pursuant to the June Georgia that has not yet been designated for the Standards regulation. The SIP revision 2010 SO2 standard, and thus is still subject to the updates Georgia’s air quality standards 22, 2010 action and 40 CFR 50.4, the 1971 annual and 24-hour SO2 standards. See 81 FR 45039 (July 12, 2016); 83 FR 1098 (January 9, 2018). for sulfur dioxide (SO2) to be consistent 1971 primary SO2 annual and 24-hour 4 with the National Ambient Air Quality NAAQS will continue to apply in an As discussed in the NPRM, EPA received area until one year after the effective several SIP revisions from Georgia through the July Standards (NAAQS). EPA is approving 31, 2018, letter and is considering action on the the SIP revision because the change is date of the designation of that area for additional SIP revisions in separate actions.

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SIP, have been incorporated by affect small governments, as described the Federal Register. A major rule reference by EPA into that plan, are in the Unfunded Mandates Reform Act cannot take effect until 60 days after it fully Federally enforceable under of 1995 (Pub. L. 104–4); is published in the Federal Register. sections 110 and 113 of the CAA as of • Does not have federalism This action is not a ‘‘major rule’’ as the effective date of the final rulemaking implications as specified in Executive defined by 5 U.S.C. 804(2). of EPA’s approval, and will be Order 13132 (64 FR 43255, August 10, Under section 307(b)(1) of the CAA, incorporated by reference in the next 1999); petitions for judicial review of this update to the SIP compilation.5 • Is not an economically significant action must be filed in the United States III. Final Action regulatory action based on health or Court of Appeals for the appropriate safety risks subject to Executive Order circuit by December 30, 2019. Filing a EPA is taking final action to approve 13045 (62 FR 19885, April 23, 1997); petition for reconsideration by the the State of Georgia’s July 31, 2018, SIP • Is not a significant regulatory action Administrator of this final rule does not submission revising Rule 391–3–1– subject to Executive Order 13211 (66 FR affect the finality of this action for the .02(4), Ambient Air Standards, 28355, May 22, 2001); purposes of judicial review nor does it paragraph (b) Sulfur Dioxide. This • Is not subject to requirements of extend the time within which a petition revision is consistent with the CAA. Section 12(d) of the National for judicial review may be filed and IV. Statutory and Executive Order Technology Transfer and Advancement shall not postpone the effectiveness of Reviews Act of 1995 (15 U.S.C. 272 note) because such rule or action. This action may not application of those requirements would Under the CAA, the Administrator is be challenged later in proceedings to be inconsistent with the CAA; and required to approve a SIP submission enforce its requirements. See section • Does not provide EPA with the that complies with the provisions of the 307(b)(2). discretionary authority to address, as Act and applicable Federal regulations. appropriate, disproportionate human List of Subjects in 40 CFR Part 52 See 42 U.S.C. 7410(k); 40 CFR 52.02(a). health or environmental effects, using Thus, in reviewing SIP submissions, Environmental protection, Air practicable and legally permissible EPA’s role is to approve state choices, pollution control, Incorporation by methods, under Executive Order 12898 provided that they meet the criteria of reference, Intergovernmental relations, the CAA. This action merely approves (59 FR 7629, February 16, 1994). Reporting and recordkeeping state law as meeting Federal The SIP is not approved to apply on requirements, Sulfur oxides, Volatile requirements and does not impose any Indian reservation land or in any organic compounds. other area where EPA or an Indian tribe additional requirements beyond those Dated: October 10, 2019. imposed by state law. For that reason, has demonstrated that a tribe has jurisdiction. In those areas of Indian Mary S. Walker, this final action: Regional Administrator, Region 4. • Is not a significant regulatory action country, the rule does not have tribal subject to review by the Office of implications as specified by Executive 40 CFR part 52 is amended as follows: Management and Budget under Order 13175 (65 FR 67249, November 9, Executive Orders 12866 (58 FR 51735, 2000), nor will it impose substantial PART 52—APPROVAL AND October 4, 1993) and 13563 (76 FR 3821, direct costs on tribal governments or PROMULGATION OF January 21, 2011); preempt tribal law. IMPLEMENTATION PLANS • Is not an Executive Order 13771 (82 The Congressional Review Act, 5 FR 9339, February 2, 2017) regulatory U.S.C. 801 et seq., as added by the Small ■ 1. The authority citation for part 52 action because SIP approvals are Business Regulatory Enforcement continues to read as follows: exempted under Executive Order 12866; Fairness Act of 1996, generally provides Authority: 42.U.S.C. 7401 et seq. • Does not impose an information that before a rule may take effect, the collection burden under the provisions agency promulgating the rule must Subpart L—Georgia of the Paperwork Reduction Act (44 submit a rule report, which includes a U.S.C. 3501 et seq.); copy of the rule, to each House of the ■ 2. Section 52.570(c), is amended • Is certified as not having a Congress and to the Comptroller General under Emission Standards by revising significant economic impact on a of the United States. EPA will submit a the entry for ‘‘391–3–1-.02(4)’’ to read as substantial number of small entities report containing this action and other follows: under the Regulatory Flexibility Act (5 required information to the U.S. Senate, U.S.C. 601 et seq.); the U.S. House of Representatives, and § 52.570 Identification of plan. • Does not contain any unfunded the Comptroller General of the United * * * * * mandate or significantly or uniquely States prior to publication of the rule in (c) * * *

EPA-APPROVED GEORGIA REGULATIONS

State effective State citation Title/subject date EPA approval date Explanation

******* 391–3–1-.02(4) ...... Ambient Air Standards 7/23/2018 10/29/2019, [Insert cita- Except paragraphs (a), (c), (d), (e), (f), (g), and tion of publication]. (h), approved on 12/4/2018 with a State-ef- fective date of 7/20/2017.

*******

5 See 62 FR 27968 (May 22, 1997).

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* * * * * revision concerns emissions of oxides of www.regulations.gov, or please contact [FR Doc. 2019–23376 Filed 10–28–19; 8:45 am] nitrogen (NOX) from natural gas-fired the person identified in the FOR FURTHER BILLING CODE 6560–50–P water heaters. We are approving a local INFORMATION CONTACT section for rule that regulates these emission additional availability information. sources under the Clean Air Act (CAA FOR FURTHER INFORMATION CONTACT: ENVIRONMENTAL PROTECTION or the Act). AGENCY Robert Schwartz, EPA Region IX, 75 DATES: This rule will be effective on Hawthorne St., San Francisco, CA 40 CFR Part 52 November 29, 2019. 94105. By phone: (415) 972–3286 or by ADDRESSES: The EPA has established a email at [email protected]. [EPA–R09–OAR–2019–0422; FRL–10000– docket for this action under Docket ID 88–Region 9] SUPPLEMENTARY INFORMATION: No. EPA–R09–OAR–2019–0422. All Throughout this document, ‘‘we,’’ ‘‘us’’ Air Plan Approval; California; Ventura documents in the docket are listed on and ‘‘our’’ refer to the EPA. County Air Pollution Control District the https://www.regulations.gov website. Although listed in the index, Table of Contents AGENCY: Environmental Protection some information is not publicly I. Proposed Action Agency (EPA). available, e.g., Confidential Business II. Public Comments and EPA Responses ACTION: Final rule. Information (CBI) or other information III. EPA Action whose disclosure is restricted by statute. IV. Incorporation by Reference SUMMARY: The Environmental Protection Certain other material, such as V. Statutory and Executive Order Reviews Agency (EPA) is taking final action to copyrighted material, is not placed on I. Proposed Action approve a revision to the Ventura the internet and will be publicly County Air Pollution Control District available only in hard copy form. On August 2, 2019 (84 FR 37816), the (VCAPCD) portion of the California Publicly available docket materials are EPA proposed to approve the following State Implementation Plan (SIP). This available through https:// rule into the California SIP.

Local agency Rule No. Rule title Revised Submitted

VCAPCD ...... 74.11 Natural Gas-Fired Water Heaters ...... 5/11/2010 6/21/2011

We proposed to approve this rule FURTHER INFORMATION CONTACT section of under the Regulatory Flexibility Act (5 because we determined that it complies this preamble for more information). U.S.C. 601 et seq.); with the relevant CAA requirements. • Does not contain any unfunded V. Statutory and Executive Order Our proposed action and related mandate or significantly or uniquely Reviews Technical Support Document (TSD) affect small governments, as described contain more information on the rule Under the Clean Air Act, the in the Unfunded Mandates Reform Act and our evaluation. Administrator is required to approve a of 1995 (Pub. L. 104–4); • Does not have federalism II. Public Comments and EPA SIP submission that complies with the implications as specified in Executive Responses provisions of the Act and applicable Federal regulations. 42 U.S.C. 7410(k); Order 13132 (64 FR 43255, August 10, The EPA’s proposed action provided 40 CFR 52.02(a). Thus, in reviewing SIP 1999); a 30-day public comment period. During submissions, the EPA’s role is to • Is not an economically significant this period, we received no comments. approve state choices, provided that regulatory action based on health or safety risks subject to Executive Order III. EPA Action they meet the criteria of the Clean Air Act. Accordingly, this action merely 13045 (62 FR 19885, April 23, 1997); Pursuant to section 110(k)(3) of the approves state law as meeting Federal • Is not a significant regulatory action Act and based on the evaluation and requirements and does not impose subject to Executive Order 13211 (66 FR rationale presented in our August 2, additional requirements beyond those 28355, May 22, 2001); 2019 proposed rule, the EPA is taking imposed by state law. For that reason, • Is not subject to requirements of final action to approve VCAPCD Rule this action: Section 12(d) of the National 74.11 (Natural Gas-Fired Water Heaters) • Is not a significant regulatory action Technology Transfer and Advancement as a revision to the Ventura County subject to review by the Office of Act of 1995 (15 U.S.C. 272 note) because portion of the California SIP. Management and Budget under application of those requirements would be inconsistent with the Clean Air Act; IV. Incorporation by Reference Executive Orders 12866 (58 FR 51735, and October 4, 1993) and 13563 (76 FR 3821, • In this rule, the EPA is finalizing January 21, 2011); Does not provide the EPA with the regulatory text that includes • discretionary authority to address, as incorporation by reference. In Is not an Executive Order 13771 (82 appropriate, disproportionate human accordance with requirements of 1 CFR FR 9339, February 2, 2017) regulatory health or environmental effects, using 51.5, the EPA is finalizing the action because SIP approvals are practicable and legally permissible incorporation by reference of the exempted under Executive Order 12866; methods, under Executive Order 12898 VCAPCD rule described in the • Does not impose an information (59 FR 7629, February 16, 1994). amendments to 40 CFR part 52 set forth collection burden under the provisions In addition, the SIP is not approved below. The EPA has made, and will of the Paperwork Reduction Act (44 to apply on any Indian reservation land continue to make, this document U.S.C. 3501 et seq.); or in any other area where the EPA or available through www.regulations.gov • Is certified as not having a an Indian tribe has demonstrated that a and at the EPA Region IX Office (please significant economic impact on a tribe has jurisdiction. In those areas of contact the person identified in the FOR substantial number of small entities Indian country, the rule does not have

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tribal implications and will not impose Subpart F—California limit of 2,000 t of longline-caught bigeye substantial direct costs on tribal tuna for the U.S. territories of American governments or preempt tribal law as ■ 2. Section 52.220 is amended by Samoa, Guam and the CNMI (84 FR specified by Executive Order 13175 (65 adding paragraphs (c)(164)(i)(C)(6) and 34321, July 18, 2019). NMFS also FR 67249, November 9, 2000). (c)(391)(i)(D) to read as follows: authorized each territory to allocate up to 1,000 t of its 2,000 t bigeye tuna limit The Congressional Review Act, 5 § 52.220 Identification of plan-in part. to U.S. longline fishing vessels U.S.C. 801 et seq., as added by the Small * * * * * permitted to fish under the Fishery Business Regulatory Enforcement (c) * * * Ecosystem Plan for Pelagic Fisheries of Fairness Act of 1996, generally provides (164) * * * (i) * * * the Western Pacific (FEP). The limit is that before a rule may take effect, the effective from July 17, 2019, through agency promulgating the rule must (C) * * * (6) Previously approved on September December 31, 2019. submit a rule report, which includes a 24, 1999 in paragraph (c)(164)(i)(C)(4) of On July 18, 2019, the Western Pacific copy of the rule, to each House of the this section and now deleted with Fishery Management Council (Council), Congress and to the Comptroller General replacement in paragraph through its Executive Director, of the United States. The EPA will (c)(391)(i)(D)(1) of this section, Rule transmitted to NMFS a specified fishing submit a report containing this action 74.11 as adopted on April 9, 1985. agreement between the CNMI and the and other required information to the Hawaii Longline Association (HLA) * * * * * dated June 13, 2019. NMFS reviewed U.S. Senate, the U.S. House of (391) * * * Representatives, and the Comptroller (i) * * * the agreement and determined that it General of the United States prior to (D) Ventura County Air Pollution was consistent with the requirements at publication of the rule in the Federal Control District. 50 CFR 665.819, the FEP, the Register. A major rule cannot take effect (1) Rule 74.11, ‘‘Natural Gas-Fired Magnuson-Stevens Fishery until 60 days after it is published in the Water Heaters,’’ revised on May 11, Conservation and Management Act, and Federal Register. This action is not a 2010. other applicable laws (84 FR 37592, ‘‘major rule’’ as defined by 5 U.S.C. (2) [Reserved] August 1, 2019). The criteria that a 804(2). * * * * * specified fishing agreement must meet, [FR Doc. 2019–23378 Filed 10–28–19; 8:45 am] and the process for attributing longline- Under section 307(b)(1) of the Clean caught bigeye tuna, followed the BILLING CODE 6560–50–P Air Act, petitions for judicial review of procedures in 50 CFR 665.819— this action must be filed in the United Territorial catch and fishing effort States Court of Appeals for the limits. appropriate circuit by December 30, DEPARTMENT OF COMMERCE In accordance with 50 CFR 300.224(d) 2019. Filing a petition for National Oceanic and Atmospheric and 50 CFR 665.819(c)(9)(i), NMFS reconsideration by the Administrator of Administration began attributing bigeye tuna caught in this final rule does not affect the finality the WCPO by vessels identified in the of this action for the purposes of judicial 50 CFR Part 665 CNMI/HLA agreement to the CNMI, review nor does it extend the time beginning on July 20, 2019. NMFS within which a petition for judicial [Docket No. 190325272–9537–02] monitored catches of longline-caught review may be filed, and shall not RIN 0648–XG925 bigeye tuna by the CNMI longline postpone the effectiveness of such rule fishery, including catches made by U.S. or action. This action may not be Pacific Island Pelagic Fisheries; 2019 longline vessels operating under the challenged later in proceedings to Commonwealth of the Northern CNMI/HLA agreement. Based on this enforce its requirements. (See section Mariana Islands Bigeye Tuna Fishery; monitoring, NMFS forecasted that the 307(b)(2).) Closure CNMI territorial allocation limit of 1,000 t will be reached by November 4, 2019, List of Subjects in 40 CFR Part 52 AGENCY: National Marine Fisheries and is, as an accountability measure, Service (NMFS), National Oceanic and prohibiting the catch and retention of Environmental protection, Air Atmospheric Administration (NOAA), longline-caught bigeye tuna by vessels pollution control, Incorporation by Commerce. in the CNMI/HLA agreement. reference, Intergovernmental relations, ACTION: Temporary rule; closure. Nitrogen dioxide, Ozone, Reporting and Notice of Closure and Temporary Rule SUMMARY: NMFS is closing the U.S. recordkeeping requirements. Effective 12:01 a.m. local time pelagic longline fishery for bigeye tuna Dated: September 11, 2019. November 4, 2019, through December in the western and central Pacific Ocean 31, 2019, NMFS closes the U.S. pelagic Kerry Drake, (WCPO) because the fishery will reach longline fishery for bigeye tuna in the Acting Regional Administrator, Region IX. the 2019 allocation limit for the WCPO as a result of the fishery reaching Commonwealth of the Northern Mariana the 2019 allocation limit of 1,000 t for Chapter I, title 40 of the Code of Islands (CNMI). This action is necessary Federal Regulations is amended as the CNMI. to comply with regulations managing During the closure, a U.S. fishing follows: this fish stock. vessel operating under the CNMI/HLA DATES: Effective 12:01 a.m. local time PART 52—APPROVAL AND agreement may not retain on board, November 4, 2019, through December transship, or land bigeye tuna captured PROMULGATION OF 31, 2019. IMPLEMENTATION PLANS by longline gear in the WCPO, except FOR FURTHER INFORMATION CONTACT: that any bigeye tuna already on board a Jarad Makaiau, NMFS PIRO Sustainable fishing vessel upon the effective date of ■ 1. The authority citation for part 52 Fisheries, 808–725–5176. the restrictions may be retained on continues to read as follows: SUPPLEMENTARY INFORMATION: On July board, transshipped, and landed, Authority: 42 U.S.C. 7401 et seq. 17, 2019, NMFS specified a 2019 catch provided that they are landed within 14

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days of the start of the closure; that is, (2) Other applicable laws and closure date, and allows two weeks to by November 18, 2019. Additionally, regulations are followed; and return to port and land their catch of U.S. fishing vessels operating under the (3) The vessel has a valid permit bigeye tuna. This action is intended to CNMI/HLA agreement are also issued under 50 CFR 660.707 or comply with regulations managing this prohibited from transshipping bigeye 665.801. stock, and, accordingly NMFS finds it tuna caught in the WCPO by longline Classification impracticable and contrary to the public gear to any vessel other than a U.S. interest to have prior notice and public fishing vessel with a valid permit issued There is good cause under 5 U.S.C. comment. 553(b)(B) to waive prior notice and the under 50 CFR 660.707 or 665.801. For the reasons stated above, there is However, any vessel included in the opportunity for public comment on this also good cause under 5 U.S.C. 553(d)(3) CNMI/HLA agreement that is included action, because it would be to waive the 30-day delay in in a valid specified fishing agreement impracticable and contrary to public effectiveness for this temporary rule. with another U.S. territory, may interest, as discussed below. This rule NMFS must close the fishery to ensure continue to transship, retain, and land closes the U.S. longline fishery for that fishery does not exceed the bigeye tuna caught by longline gear in bigeye tuna in the WCPO as a result of allocation limit. NMFS implemented the the WCPO. Additionally, if any such reaching the bigeye tuna allocation limit catch and allocation limits for the CNMI vessel is engaged in a longline fishing established by the 2019 specification for consistent with management objectives trip in the WCPO on November 4, 2019, catch and allocation limits of bigeye to sustainably manage the bigeye tuna that vessel would not need to return to tuna for the CNMI, and the specified stock. Failure to close the fishery before port before November 18, 2019. NMFS fishing agreement between the the limit is reached would be would announce any subsequent valid Government of the CNMI and HLA inconsistent with bigeye tuna specified fishing agreement in the dated, June 13, 2019. management objectives and in violation Federal Register. NMFS forecasted that the fishery Additionally, during the effective would reach the 2019 CNMI allocation of Federal law. period of the restrictions, longline- limit by November 4, 2019. Fishermen This action is required by 50 CFR caught bigeye tuna may be retained on have been subject to longline bigeye 665.819(d), and is exempt from review board, transshipped, and landed if the tuna limits in the WCPO since 2009. under Executive Order 12866. fish are caught by a vessel with a valid They have received ongoing, updated Authority: 16 U.S.C. 1801 et seq. American Samoa longline permit; or if information about the 2019 catch and the fish are landed in the U.S. progress of the fishery in reaching the Dated: October 23, 2019. territories. In these cases, the following U.S. bigeye tuna limit via the NMFS Jennifer M. Wallace, conditions must be met: website, social media, and other means. Acting Director, Office of Sustainable (1) The fish is not caught in the U.S. The publication timing of this rule, Fisheries, National Marine Fisheries Service. exclusive economic zone (EEZ) around moreover, provides longline fishermen [FR Doc. 2019–23526 Filed 10–28–19; 8:45 am] Hawaii; with seven days’ advance notice of the BILLING CODE 3510–22–P

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Proposed Rules Federal Register Vol. 84, No. 209

Tuesday, October 29, 2019

This section of the FEDERAL REGISTER 400 Coˆte-Vertu Road West, Dorval, Discussion contains notices to the public of the proposed Que´bec H4S 1Y9, Canada; phone: 514– Transport Canada Civil Aviation issuance of rules and regulations. The 855–5000; fax: 514–855–7401; email: (TCCA), which is the aviation authority purpose of these notices is to give interested [email protected]; internet: persons an opportunity to participate in the for Canada, has issued Canadian AD rule making prior to the adoption of the final http://www.bombardier.com. You may CF–2019–18, dated May 10, 2019 rules. view this service information at the (referred to after this as the Mandatory FAA, Transport Standards Branch, 2200 Continuing Airworthiness Information, South 216th St., Des Moines, WA. For or ‘‘the MCAI’’), to correct an unsafe DEPARTMENT OF TRANSPORTATION information on the availability of this condition for certain Bombardier, Inc., material at the FAA, call 206–231–3195. Model BD–700–1A10 and BD–700– Federal Aviation Administration 1A11 airplanes. The MCAI states: Examining the AD Docket 14 CFR Part 39 Bombardier Inc. has discovered that easy You may examine the AD docket on removal of the portable oxygen bottle from its [Docket No. FAA–2019–0725; Product the internet at http:// support bracket may not always be possible Identifier 2019–NM–099–AD] www.regulations.gov by searching for on some portable oxygen bottle installations and locating Docket No. FAA–2019– due to the latch of the upper bracket RIN 2120–AA64 assembly catching on the pressure gauge tube 0725; or in person at Docket Operations or on the pressure gauge bezel of the portable Airworthiness Directives; Bombardier, between 9 a.m. and 5 p.m., Monday oxygen bottle. The portable oxygen bottle is Inc., Airplanes through Friday, except Federal holidays. required to be accessible for use by cabin The AD docket contains this NPRM, the AGENCY: Federal Aviation crew members in emergency situations. This [Canadian] AD requires installation of a Administration (FAA), DOT. regulatory evaluation, any comments received, and other information. The modified top bracket and new middle bracket ACTION: Notice of proposed rulemaking street address for Docket Operations on all affected portable oxygen bottle (NPRM). (phone: 800–647–5527) is listed above. installations to improve portable oxygen bottle accessibility. SUMMARY: The FAA proposes to adopt a Comments will be available in the AD new airworthiness directive (AD) for docket shortly after receipt. You may examine the MCAI in the certain Bombardier, Inc., Model BD– AD docket on the internet at http:// FOR FURTHER INFORMATION CONTACT: www.regulations.gov by searching for 700–1A10 and BD–700–1A11 airplanes. Darren Gassetto, Aerospace Engineer, This proposed AD was prompted by a and locating Docket No. FAA–2019– Mechanical Systems and Administrative 0725. report that easy removal of the portable Services Section, FAA, New York ACO oxygen bottle from its support bracket Branch, 1600 Stewart Avenue, Suite Related Service Information Under 1 may not always be possible on certain 410, Westbury, NY 11590; phone: 516– CFR Part 51 installations. This proposed AD would 228–7323; fax: 516–794–5531; email: Bombardier has issued the following require installation of a modified top [email protected]. service information. The service bracket and new middle bracket on all information describes procedures for affected portable oxygen bottle SUPPLEMENTARY INFORMATION: installation of a modified top bracket installations. The FAA is proposing this and new middle bracket on all affected AD to address the unsafe condition on Comments Invited portable oxygen bottle installations. these products. The FAA invites you to send any These documents are distinct since they DATES: The FAA must receive comments written relevant data, views, or apply to different airplane models in on this proposed AD by December 13, arguments about this proposal. Send different configurations. 2019. your comments to an address listed • Service Bulletin 700–1A11–35–013, ADDRESSES: You may send comments, under the ADDRESSES section. Include dated July 3, 2018. using the procedures found in 14 CFR ‘‘Docket No. FAA–2019–0725; Product • Service Bulletin 700–35–014, dated 11.43 and 11.45, by any of the following Identifier 2019–NM–099–AD’’ at the July 3, 2018. methods: beginning of your comments. The FAA • Service Bulletin 700–35–5003, • Federal eRulemaking Portal: Go to specifically invites comments on the Revision 01, dated November 23, 2018. • http://www.regulations.gov. Follow the overall regulatory, economic, Service Bulletin 700–35–6003, instructions for submitting comments. environmental, and energy aspects of Revision 02, dated November 23, 2018. • Fax: 202–493–2251. This service information is reasonably • this NPRM. The FAA will consider all Mail: U.S. Department of comments received by the closing date available because the interested parties Transportation, Docket Operations, and may amend this NPRM because of have access to it through their normal M–30, West Building Ground Floor, those comments. course of business or by the means Room W12–140, 1200 New Jersey identified in the ADDRESSES section. Avenue SE, Washington, DC 20590. The FAA will post all comments • Hand Delivery: Deliver to Mail received, without change, to http:// FAA’s Determination address above between 9 a.m. and 5 www.regulations.gov, including any This product has been approved by p.m., Monday through Friday, except personal information you provide. The the aviation authority of another Federal holidays. FAA will also post a report country, and is approved for operation For service information identified in summarizing each substantive verbal in the United States. Pursuant to our this NPRM, contact Bombardier, Inc., contact received about this NPRM. bilateral agreement with the State of

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Design Authority, we have been notified on other products of the same type Costs of Compliance of the unsafe condition described in the design. MCAI and service information The FAA estimates that this proposed Proposed Requirements of This NPRM referenced above. We are proposing this AD affects 108 airplanes of U.S. registry. AD because we evaluated all the This proposed AD would require The FAA estimates the following costs relevant information and determined accomplishing the actions specified in to comply with this proposed AD: the unsafe condition described the service information described previously is likely to exist or develop previously.

ESTIMATED COSTS FOR REQUIRED ACTIONS

Labor cost Parts cost Cost per product Cost on U.S. operators

2 work-hours × $85 per hour = $170 per installation ...... $1,575 per installation ...... $1,745 per installation ...... $188,460 per installation.

According to the manufacturer, some 13132. This proposed AD would not (c) Applicability or all of the costs of this proposed AD have a substantial direct effect on the This AD applies to the following may be covered under warranty, thereby States, on the relationship between the Bombardier, Inc., airplanes, certificated in reducing the cost impact on affected national Government and the States, or any category. individuals. The FAA does not control on the distribution of power and (1) Model BD–700–1A10, serial numbers warranty coverage for affected responsibilities among the various 9002, 9006 through 9010 inclusive, 9012, individuals. As a result, the FAA has levels of government. 9016, 9018 through 9023 inclusive, 9029 through 9031 inclusive, 9033, 9035 through included all known costs in the cost For the reasons discussed above, I 9037 inclusive, 9039 through 9048 inclusive, estimate. certify this proposed regulation: 9058, 9059, 9061, 9063, 9066 through 9068 Authority for This Rulemaking inclusive, 9070, 9071, 9073 through 9075 (1) Is not a ‘‘significant regulatory inclusive, 9078, 9085, 9090, 9092, 9093, Title 49 of the United States Code action’’ under Executive Order 12866, 9097, 9105, 9106, 9108, 9112, 9121, 9122, specifies the FAA’s authority to issue (2) Will not affect intrastate aviation 9124, 9137, 9139, 9143, 9145, 9153, 9167, rules on aviation safety. Subtitle I, in Alaska, and 9177, 9181, 9183, 9185, 9187, 9191, 9203, 9205, 9210, 9223, 9234, 9236, 9244, 9250, section 106, describes the authority of (3) Will not have a significant the FAA Administrator. Subtitle VII: 9264, 9270, 9272, 9283, 9286, 9294, 9304, economic impact, positive or negative, 9312, 9314, 9326, 9333, 9364, 9368, 9378, Aviation Programs, describes in more on a substantial number of small entities 9381, 9388, 9407, 9419, 9438, 9460, 9470, detail the scope of the Agency’s under the criteria of the Regulatory 9475, 9478, 9479, 9481, 9484, 9485, 9499, authority. Flexibility Act. 9524, 9529, 9530, 9533, 9538, 9551, 9553, The FAA is issuing this rulemaking 9568, 9598, 9615, 9624, 9632, 9638, 9640, under the authority described in List of Subjects in 14 CFR Part 39 9641, 9648, 9657, 9670, 9680, 9682, 9689, Subtitle VII, Part A, Subpart III, Section 9700, 9706, 9723, 9726, 9730, 9731, 9745, 44701: ‘‘General requirements.’’ Under Air transportation, Aircraft, Aviation 9752, 9753, 9757, 9759, 9773, 9775, 9804, that section, Congress charges the FAA safety, Incorporation by reference, 9814, 9816, and 9817. with promoting safe flight of civil Safety. (2) Model BD–700–1A11, serial numbers 9176, 9178, 9182, 9207, 9212, 9216, 9217, aircraft in air commerce by prescribing The Proposed Amendment 9227, 9255, 9285, 9376, 9389, 9401, 9427, regulations for practices, methods, and 9480, 9483, 9498, 9513, 9531, 9536, 9555, procedures the Administrator finds Accordingly, under the authority 9558, 9569, 9581, 9589, 9592, 9597, 9613, necessary for safety in air commerce. delegated to me by the Administrator, 9618, 9660, 9710, 9722, 9732, 9734, 9737, This regulation is within the scope of the FAA proposes to amend 14 CFR part 9768, 9777, and 9790. that authority because it addresses an 39 as follows: (d) Subject unsafe condition that is likely to exist or PART 39—AIRWORTHINESS Air Transport Association (ATA) of develop on products identified in this America Code 35, Oxygen. rulemaking action. DIRECTIVES This proposed AD is issued in (e) Reason accordance with authority delegated by ■ 1. The authority citation for part 39 This AD was prompted by a report that the Executive Director, Aircraft continues to read as follows: easy removal of the portable oxygen bottle Certification Service, as authorized by Authority: 49 U.S.C. 106(g), 40113, 44701. from its support bracket may not always be FAA Order 8000.51C. In accordance possible on certain installations. The FAA is with that order, issuance of ADs is issuing this AD to address inaccessible § 39.13 [Amended] portable oxygen bottles, which may not be normally a function of the Compliance ■ 2. The FAA amends § 39.13 by adding available to the flightcrew in emergency and Airworthiness Division, but during situations. this transition period, the Executive the following new airworthiness Director has delegated the authority to directive (AD): (f) Compliance issue ADs applicable to transport Bombardier, Inc.: Docket No. FAA–2019– Comply with this AD within the category airplanes and associated 0725; Product Identifier 2019–NM–099– compliance times specified, unless already appliances to the Director of the System AD. done. Oversight Division. (a) Comments Due Date (g) Definition Regulatory Findings The FAA must receive comments by For the purposes of this AD, an affected December 13, 2019. portable oxygen bottle installation is defined The FAA determined that this as one that is installed in any of the airplanes proposed AD would not have federalism (b) Affected ADs specified in paragraphs (c)(1) and (2) of this implications under Executive Order None. AD.

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(h) Installation of Modified Top Bracket and new middle bracket on all affected portable information specified in figure 1 to paragraph New Middle Bracket oxygen bottle installations in accordance (h) of this AD. Within 60 months after the effective date with paragraph 2.B. of the Accomplishment of this AD, install a modified top bracket and Instructions of the applicable service

(i) Credit for Previous Actions AD CF–2019–18, dated May 10, 2019, for SUMMARY: On May 13, 2019, the This paragraph provides credit for actions related information. This MCAI may be Commodity Futures Trading required by paragraph (h) of this AD, if those found in the AD docket on the internet at Commission (Commission) published in actions were performed before the effective http://www.regulations.gov by searching for and locating Docket No. FAA–2019–0725. the Federal Register a notice of date of this AD using Bombardier Service proposed rulemaking (NPRM) titled Bulletin 700–35–5003, dated July 3, 2018; or (2) For more information about this AD, contact Darren Gassetto, Aerospace Engineer, Certain Swap Data Repository and Data Bombardier Service Bulletin 700–35–6003, Reporting Requirements. The comment dated July 3, 2018; or Bombardier Service Mechanical Systems and Administrative Bulletin 700–35–6003, Revision 01, dated Services Section, FAA, New York ACO period for the NPRM was originally September 5, 2018; as applicable. Branch, 1600 Stewart Avenue, Suite 410, scheduled to close on July 29, 2019. The Westbury, NY 11590; phone: 516–228–7323; Commission subsequently extended the (j) Other FAA AD Provisions fax: 516–794–5531; email: 9-avs-nyaco-cos@ comment period for 90 days to October faa.gov. The following provisions also apply to this 28, 2019. The Commission is further AD: (3) For service information identified in this AD, contact Bombardier, Inc., 400 Coˆte- extending the comment period for this (1) Alternative Methods of Compliance NPRM by an additional 90 days to (AMOCs): The Manager, New York ACO Vertu Road West, Dorval, Que´bec H4S 1Y9, Branch, FAA, has the authority to approve Canada; phone: 514–855–5000; fax: 514–855– January 27, 2020. AMOCs for this AD, if requested using the 7401; email: [email protected]; DATES: The comment period for the internet: http://www.bombardier.com. You procedures found in 14 CFR 39.19. In NPRM titled Certain Swap Data accordance with 14 CFR 39.19, send your may view this service information at the FAA, Transport Standards Branch, 2200 Repository and Data Reporting request to your principal inspector or local Requirements, published on May 13, Flight Standards District Office, as South 216th St., Des Moines, WA. For appropriate. If sending information directly information on the availability of this 2019 (84 FR 21044), is extended. to the manager of the certification office, material at the FAA, call 206–231–3195. Comments are due January 27, 2020. send it to ATTN: Program Manager, Issued in Des Moines, Washington, on ADDRESSES: You may submit comments, Continuing Operational Safety, FAA, New October 22, 2019. identified by ‘‘Certain Swap Data York ACO Branch, 1600 Stewart Avenue, Dionne Palermo, Repository and Data Reporting Suite 410, Westbury, NY 11590; phone: 516– 228–7300; fax: 516–794–5531. Before using Acting Director, System Oversight Division, Requirements’’ and RIN number 3038– any approved AMOC, notify your appropriate Aircraft Certification Service. AE32, by any of the following methods: principal inspector, or lacking a principal [FR Doc. 2019–23528 Filed 10–28–19; 8:45 am] • CFTC Comments Portal: https:// inspector, the manager of the local flight BILLING CODE 4910–13–P comments.cftc.gov. Select the ‘‘Submit standards district office/certificate holding Comments’’ link for this rulemaking and district office. follow the instructions on the Public (2) Contacting the Manufacturer: For any COMMODITY FUTURES TRADING Comment Form. requirement in this AD to obtain corrective • actions from a manufacturer, the action must COMMISSION Mail: Send to Christopher be accomplished using a method approved Kirkpatrick, Secretary of the by the Manager, New York ACO Branch, 17 CFR Parts 23, 43, 45, and 49 Commission, Commodity Futures FAA; or Transport Canada Civil Aviation RIN 3038–AE32 Trading Commission, Three Lafayette (TCCA); or Bombardier, Inc.’s TCCA Design Centre, 1155 21st Street NW, Approval Organization (DAO). If approved by Certain Swap Data Repository and Washington, DC 20581. the DAO, the approval must include the Data Reporting Requirements • Hand Delivery/Courier: Follow the DAO-authorized signature. same instructions as for mail, above. AGENCY: Commodity Futures Trading (k) Related Information Commission. Please submit your comments using (1) Refer to Mandatory Continuing only one of these methods. To avoid ACTION: Extension of comment period. Airworthiness Information (MCAI) Canadian possible delays with mail or in-person

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deliveries, submissions through the additional 90 days to October 28, 2019.2 DEPARTMENT OF HOMELAND CFTC Comments Portal are encouraged. At the request of market participants,3 SECURITY All comments must be submitted in the Commission is again extending the U.S. Customs and Border Protection English, or if not, accompanied by an comment period for this NPRM for an English translation. Comments will be additional 90 days to January 27, 2020. DEPARTMENT OF THE TREASURY posted as received to https:// This extension of the comment period comments.cftc.gov. You should submit will allow interested persons additional 19 CFR Parts 127 and 133 only information that you wish to make time to analyze the proposal and available publicly. If you wish the prepare their comments. [USCBP–2019–0031] 4 Commission to consider information As stated in the NPRM, the RIN 1515–AE35 that you believe is exempt from Commission anticipates reopening or disclosure under the Freedom of extending the comment period for this Disclosure of Information Regarding Information Act (FOIA), a petition for NPRM to coincide with the comment Abandoned Merchandise confidential treatment of the exempt periods for the additional planned information may be submitted according rulemakings under the Commission’s AGENCY: U.S. Customs and Border to the procedures established in 17 CFR Roadmap to Achieve High Quality Protection, Department of Homeland 145.9 of the Commission’s regulations. Swaps Data (‘‘Roadmap’’),5 in order to Security; Department of the Treasury. ACTION: Notice of proposed rulemaking; The Commission reserves the right, provide market participants with the extension of comment period. but shall have no obligation, to review, opportunity to comment collectively on all rulemakings proposed under the pre-screen, filter, redact, refuse or SUMMARY: Roadmap. The Commission does not This document provides remove any or all of your submission additional time for interested parties to from https://comments.cftc.gov that it anticipate further extending the comment period for this NPRM in the submit comments on the proposed rule may deem to be inappropriate for published August 27, 2019, to amend publication, such as obscene language. absence of the additional Roadmap rulemakings. In the instance where the the U.S. Customs and Border Protection All submissions that have been redacted (CBP) regulations pertaining to or removed that contain comments on additional Roadmap rulemakings are not proposed before the expiration of disclosure of information regarding the merits of the rulemaking will be merchandise that was voluntarily retained in the public comment file and the extended comment period for this NPRM, the Commission anticipates abandoned. Based on a request from the will be considered as required under the reopening this comment period when public to provide additional time to Administrative Procedure Act and other the remaining Roadmap rulemakings are prepare comments on the proposed rule, applicable laws, and may be accessible proposed. CBP is extending the comment period to under the FOIA. November 15, 2019. Issued in Washington, DC, on October 24, DATES: The comment period for the FOR FURTHER INFORMATION CONTACT: 2019, by the Commission. Benjamin DeMaria, Special Counsel, proposed rule published August 27, Robert Sidman, 202–418–5988, [email protected] or 2019 (84 FR 44790), is extended. Meghan Tente, Acting Associate Deputy Secretary of the Commission. Comments must be received on or before November, 15, 2019. Director, 202–418–5785, mtente@ Note: The following appendix will not ADDRESSES: cftc.gov; Division of Market Oversight, appear in the Code of Federal Regulations. You may submit comments, Data and Reporting Branch, Commodity identified by docket number, by one of Futures Trading Commission, Three the following methods: Appendix to Certain Swap Data • Lafayette Centre, 1155 21st Street NW, Repository and Data Reporting Federal eRulemaking Portal: http:// Washington, DC 20581. Requirements—Commission Voting www.regulations.gov. Follow the Summary instructions for submitting comments SUPPLEMENTARY INFORMATION: On May via docket number USCBP–2019–0031. 13, 2019, the Commission published in On this matter, Chairman Tarbert and • Mail: Trade and Commercial the Federal Register an NPRM Commissioners Quintenz, Behnam, Stump, Regulations Branch, Regulations and proposing amendments to certain and Berkovitz voted in the affirmative. No Rulings, Office of Trade, U.S. Customs regulations applicable to swap data Commissioner voted in the negative. and Border Protection, 90 K Street NE, repositories (SDRs), reporting [FR Doc. 2019–23595 Filed 10–28–19; 8:45 am] 10th Floor, Washington, DC 20229– counterparties, and other market BILLING CODE 6351–01–P 1177. participants.1 The proposed Instructions: All submissions received amendments would, among other 2 Certain Swap Data Repository and Data must include the agency name and things, update requirements for SDRs to Reporting Requirements; Extension of Comment docket number for this rulemaking. All verify swap data with reporting Period, 84 FR 35847 (July 25, 2019). comments received will be posted counterparties, update requirements to 3 See Letter from International Swaps and without change to http:// correct swap data errors and omissions, Derivatives Association and Securities Industry and Financial Markets Association (October 8, 2019), www.regulations.gov, including any and update and clarify certain SDR available at https://comments.cftc.gov/ personal information provided. For operational and governance PublicComments/ detailed instructions on submitting requirements. ViewComment.aspx?id=62212&SearchText=. comments and additional information 4 See 84 FR at 21045–21046. on the rulemaking process, see the The comment period for the NPRM 5 See CFTC Letter 17–33, Division of Market was scheduled to close on July 29, 2019. Oversight Announces Review of Swap Reporting Public Participation heading of the The Commission subsequently extended Rules in Parts 43, 45, and 49 of Commission SUPPLEMENTARY INFORMATION section of the comment period for the NPRM by an Regulations (July 10, 2017), available at http:// this document. www.cftc.gov/idc/groups/public/@lrlettergeneral/ Docket: For access to the docket to documents/letter/17-33.pdf; Roadmap to Achieve 1 Certain Swap Data Repository and Data High Quality Swap Data, available at http:// read background documents or Reporting Requirements, 84 FR 21044 (May 13, www.cftc.gov/idc/groups/public/@newsroom/ comments received, go to http:// 2019). documents/file/dmo_swapdataplan071017.pdf. www.regulations.gov. Submitted

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comments may also be inspected during DEPARTMENT OF THE INTERIOR DATES: Comments and objections, if any, regular business days between the hours are due no later than November 19, of 9 a.m. and 4:30 p.m. at the Trade and National Park Service 2019. Commercial Regulations Branch, ADDRESSES: You may submit comments 36 CFR Part 7 Regulations and Rulings, Office of and proposals, identified by docket Trade, U.S. Customs and Border [NPS–NCR–28616; PPNCNAMAS0, number 19–CRB–0005–WR (2021– Protection, 90 K Street NE, 10th Floor, PPMPSPD1Z.YM0000] 2025), by any of the following methods: Washington, DC. Arrangements to RIN 1024–AE45 CRB’s electronic filing application: inspect submitted comments should be Submit comments and proposals online made in advance by calling Mr. Joseph Demonstrations and Special Events on in eCRB at https://app.crb.gov/. Clark at (202) 325–0118. the National Mall and Memorial Parks; U.S. mail: Copyright Royalty Board, FOR FURTHER INFORMATION CONTACT: Alex Withdrawal P.O. Box 70977, Washington, DC 20024– Bamiagis, Intellectual Property Branch, 0977; or AGENCY: National Park Service; Interior. Regulations and Rulings, Office of Overnight service (only USPS Express Trade, U.S. Customs and Border ACTION: Proposed rule; withdrawal. Mail is acceptable): Copyright Royalty Board, P.O. Box 70977, Washington, DC Protection, (202) 325–0415. SUMMARY: The National Park Service 20024–0977; or SUPPLEMENTARY INFORMATION: withdraws the proposed rule that would Commercial courier: Address package revise special regulations related to Public Participation to: Copyright Royalty Board, Library of demonstrations and special events at Congress, James Madison Memorial Interested persons are invited to certain national park units in the Building, LM–403, 101 Independence participate in this rulemaking by National Capital Region. The National Avenue SE, Washington, DC 20559– submitting written data, views, or Park Service no longer intends to 6000. Deliver to: Congressional Courier arguments on all aspects of the prepare a final rule and has terminated Acceptance Site, 2nd Street NE and D proposed rule. CBP also invites the rulemaking process. Street NE, Washington, DC; or comments that relate to the economic, DATES: The August 15, 2018 proposed Hand delivery: Library of Congress, environmental, or federalism effects that rule (83 FR 40460) is withdrawn as of James Madison Memorial Building, LM– might result from this proposed rule. If October 29, 2019. 401, 101 Independence Avenue SE, appropriate to a specific comment, the FOR FURTHER INFORMATION CONTACT: Washington, DC 20559–6000. commenter should reference the specific Brian D. Joyner, Chief of Staff, National Instructions: Parties unable to use portion of the proposed rule, explain the Park Service, National Mall and eCRB must submit an original, two reason for any recommended change, Memorial Parks, (202) 245–4468, paper copies, and an electronic version and include data, information, or [email protected]. on a CD. All submissions must include authority that support such Rob Wallace, a reference to the Copyright Royalty recommended change. Board name and docket number (19– Assistant Secretary for Fish and Wildlife and Parks. CRB–0005–WR (2021–2025)), as well as Background the Federal Register citation for this [FR Doc. 2019–23408 Filed 10–28–19; 8:45 am] proposed rule. All submissions will be On August 27, 2019, U.S. Customs BILLING CODE 4312–52–P and Border Protection (CBP) published posted without change to eCRB at a document in the Federal Register (84 https://app.crb.gov/ including any personal information provided. FR 44790), that proposes to amend the LIBRARY OF CONGRESS CBP regulations pertaining to disclosure Docket: For access to the docket to read submitted background documents of information regarding merchandise Copyright Royalty Board bearing suspected counterfeit or comments, go to eCRB, the Copyright Royalty Board’s electronic filing and trademarks that was voluntarily 37 CFR Part 380 abandoned. The document solicited case management system, at https:// public comments on the proposed rule [Docket No. 19–CRB–0005–WR (2021–2025) app.crb.gov/ and search for docket and requested that commenters submit (Web V)] number 19–CRB–0005–WR (2021– 2025). their comments on or before October 28, Determination of Royalty Rates and 2019. Terms for Ephemeral Recording and FOR FURTHER INFORMATION CONTACT: Extension of Comment Period Digital Performance of Sound Anita Blaine, Program Specialist, by Recordings (Web V) telephone at (202) 707–0078 or email at In response to the proposed rule [email protected]. published in the Federal Register, CBP AGENCY: Copyright Royalty Board, SUPPLEMENTARY INFORMATION: On has received correspondence from the Library of Congress. September 23, 2019, the Copyright public requesting an extension of the ACTION: Proposed rule related to public Royalty Judges (Judges) received a joint comment period. CBP has decided to broadcasters (radio). motion from SoundExchange, Inc. grant the extension. Accordingly, the (‘‘SoundExchange’’), National Public SUMMARY: The Copyright Royalty Judges comment period for the proposed rule is Radio, Inc. (‘‘NPR’’), and the are publishing for comment proposed extended to November 15, 2019. Corporation for Public Broadcasting regulations governing the rates and (‘‘CPB’’) (together, the ‘‘Settling Dated: October 23, 2019. terms for the digital performances of Parties’’) to adopt a partial settlement of Alice A. Kipel, sound recordings by certain public radio their interests related to Web V royalty Executive Director, Regulations and Rulings, stations and for the making of rates and terms for 2021–2025 1 for Office of Trade, U.S. Customs and Border ephemeral recordings necessary to Protection. facilitate those transmissions for the 1 Web V is short for Webcasting V. This [FR Doc. 2019–23542 Filed 10–25–19; 8:45 am] period commencing January 1, 2021, proceeding is the fifth since Congress enacted the BILLING CODE 9111–14–P and ending on December 31, 2025. Continued

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certain internet transmissions by public 2021, and end on December 31, 2025. binding on all artists and copyright broadcasters, NPR, American Public Pursuant to section 804(b)(3)(A), the owners, including those that are not Media, Public Radio International, Judges published in the Federal members of SoundExchange. Joint Public Radio Exchange, and certain Register a notice commencing the Motion at 2–3. The parties have agreed other unnamed public radio stations. proceeding and requesting that to continue their prior reporting Joint Motion to Adopt Partial interested parties submit their petitions arrangements but have not included the Settlement, Docket No. 19–CRB–0005– to participate. 84 FR 359 (Jan. 24, 2019). details of those arrangements in the WR (2021–2025). Their interests NPR 2 and SoundExchange each Settlement, which, they believe, is concern the rule setting minimum submitted petitions to participate, as did consistent with guidance that the Judges copyright royalty fees and terms that the other parties. have provided. Joint Motion at 3 and Judges will establish for compulsory On September 23, 2019, the Settling n.1. The parties have styled their copyright licenses for certain internet Parties submitted to the Judges a joint proposed regulations as a replacement transmissions of sound recordings by motion to adopt a partial settlement of subpart D to appear in the Judges’ public radio stations for the period from their interests in the proceeding. The regulations at 37 CFR part 380 and have January 1, 2021, through December 31, parties requested that the Judges set forth in proposed new subpart D 2025. SoundExchange, Inc. represents ‘‘endeavor to determine before the only regulatory provisions specific to the interests of sound recording deadline for the filing of written rebuttal Public Broadcasters, on the assumption copyright owners and performers. The statements in this Proceeding (January that the generally applicable provisions public broadcaster parties are users of 10, 2020) whether they will adopt the in subpart A will apply to Public the copyrighted material, and CPB settlement.’’ Joint Motion at 1. Broadcasters to the extent consistent provides significant funding for those Statutory Timing of Adoption of Rates with subpart D. Joint Motion at 6, parties. CPB is the entity that will pay and Terms Attachment A. the royalties pursuant to the settlement. The public may comment and object The Judges hereby publish the agreed Section 801(b)(7)(A) of the Copyright to any or all of the proposed regulations proposal and request comments from Act authorizes the Judges to adopt contained in this document. Such the public. royalty rates and terms negotiated by comments and objections must be Section 114 of the Copyright Act, title ‘‘some or all of the participants in a submitted no later than November 19, 17 of the United States Code, provides proceeding at any time during the 2019. a statutory license that allows for the proceeding’’ provided they are public performance of sound recordings submitted to the Judges for approval. List of Subjects in 37 CFR Part 380 by means of a digital audio transmission The Judges must provide ‘‘an Copyright, Sound recordings, by, among others, eligible opportunity to comment on the Webcasters. nonsubscription transmission services. agreement’’ to participants and non- For the reasons set forth in the 17 U.S.C. 114(f). For purposes of the participants in the rate proceeding who preamble, the Copyright Royalty Judges section 114 license, an ‘‘eligible ‘‘would be bound by the terms, rates, or propose to amend 37 CFR part 380 as nonsubscription transmission’’ is a other determination set by any follows: noninteractive digital audio agreement. . . .’’ 17 U.S.C. transmission that does not require a 801(b)(7)(A)(i). Participants in the PART 380—RATES AND TERMS FOR subscription for receiving the proceeding may also ‘‘object to [the TRANSMISSIONS BY ELIGIBLE transmission. The transmission must agreement’s] adoption as a basis for NONSUBSCRIPTION SERVICES AND also be made as part of a service that statutory terms and rates.’’ Id. NEW SUBSCRIPTION SERVICES AND provides audio programming consisting The Judges ‘‘may decline to adopt the FOR THE MAKING OF EPHEMERAL in whole or in part of performances of agreement as a basis for statutory terms REPRODUCTIONS TO FACILITATE sound recordings the purpose of which and rates for participants that are not THOSE TRANSMISSIONS is to provide audio or other parties to the agreement,’’ only ‘‘if any entertainment programming, but not to participant [in the proceeding] objects to ■ 1. The authority citation for part 380 sell, advertise, or promote particular the agreement and the [Judges] continues to read as follows: goods or services. See 17 U.S.C. conclude, based on the record before Authority: 17 U.S.C. 112(e), 114(f), 114(j)(6). them if one exists, that the agreement 804(b)(3). does not provide a reasonable basis for Services using the section 114 license ■ 2. Revise subpart D to read as follows: may need to make one or more setting statutory terms or rates.’’ 17 temporary or ‘‘ephemeral’’ copies of a U.S.C. 801(b)(7)(A)(ii). Subpart D—Public Broadcasters sound recording to facilitate the Proposed Adjustments to Rates and transmission of that recording. The Terms Sec. section 112 statutory license allows for 380.30 Definitions. The Settlement continues the 380.31 Royalty fees for the public the making of the necessary ephemeral structure of previous settlements performance of sound recordings and for reproductions. 17 U.S.C. 112(e). between the parties, while increasing ephemeral recordings. Chapter 8 of the Copyright Act the payment to be made by CPB. Joint 380.32 Terms for making payment of requires the Judges to conduct Motion at 2. Because the Settlement royalty fees and statements of account. proceedings every five years to applies to only a closed group of determine the rates and terms for the § 380.30 Definitions. licensees, and has only a single payor sections 114 and 112 statutory licenses. For purposes of this subpart, the (CPB), the Settlement is being submitted 17 U.S.C. 801(b)(1), 804(b)(3)(A). The following definitions apply: to the Judges for adoption as a statutory Authorized website is any website current proceeding commenced in rate and terms only so that it will be January 2019 for rates and terms that operated by or on behalf of any Public Broadcaster that is accessed by website will become effective on January 1, 2 NPR is participating on behalf of itself, its Users through a Uniform Resource member and affiliated stations, and all public radio compulsory sound recording performance license stations and entities eligible to receive funding from Locator (‘‘URL’’) owned by such Public for webcasting. CPB. NPR Petition to Participate at 1 (Feb. 4, 2019). Broadcaster and through which website

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Performances are made by such Public Website is a site located on the World annual lump sum payments that cover Broadcaster. Wide Web that can be located by a a large number of separate entities, as CPB is the Corporation for Public website User through a principal URL. well as the protection from bad debt that Broadcasting. Website Performances are all public arises from being paid in advance. Music ATH is aggregate tuning hours performances by means of digital audio (c) Increase in Public Broadcasters. If of website Performances of sound transmissions of sound recordings, the total number of Originating Public recordings of musical works. including the transmission of any Radio Stations that wish to make NPR is National Public Radio, Inc. portion of any sound recording, made website Performances in any calendar Originating Public Radio Station is a through an Authorized website in year exceeds the number of such noncommercial terrestrial radio accordance with all requirements of 17 Originating Public Radio Stations broadcast station that— U.S.C. 114, from servers used by a considered Public Broadcasters in the (1) Is licensed as such by the Federal Public Broadcaster (provided that the relevant year, and the excess Originating Communications Commission; Public Broadcaster controls the content Public Radio Stations do not wish to (2) Originates programming and is not of all materials transmitted by the pay royalties for such website solely a repeater station; server), or by a contractor authorized Performances apart from this subpart, (3) Is a member or affiliate of NPR, pursuant to § 380.31(f), that consist of CPB may elect by written notice to the American Public Media, Public Radio either the retransmission of a Public Collective to increase the number of International, or Public Radio Exchange, Broadcaster’s over-the-air terrestrial Originating Public Radio Stations a member of the National Federation of radio programming or the digital considered Public Broadcasters in the Community Broadcasters, or another transmission of nonsubscription Side relevant year effective as of the date of public radio station that is qualified to Channels that are programmed and the notice. To the extent of any such receive funding from CPB pursuant to controlled by the Public Broadcaster; elections, CPB shall make an additional its criteria; provided, however, that a Public payment to the Collective for each (4) Qualifies as a ‘‘noncommercial Broadcaster may limit access to an calendar year or part thereof it elects to webcaster’’ under 17 U.S.C. Authorized website, or a portion have an additional Originating Public 114(f)(4)(E)(i); and thereof, or any content made available Radio Station considered a Public (5) Either— thereon or functionality thereof, solely Broadcaster, in the amount of the (i) Offers website Performances only to website Users who are contributing annual minimum fee applicable to as part of the mission that entitles it to members of a Public Broadcaster. This Noncommercial Webcasters under be exempt from taxation under section term does not include digital audio subpart B of this part for each additional 501 of the Internal Revenue Code of transmissions made by any other means. Originating Public Radio Station per 1986 (26 U.S.C. 501); or Website Users are all those who access year. Such payment shall accompany (ii) In the case of a governmental or receive website Performances or who the notice electing to have an additional entity (including a Native American access any Authorized website. Originating Public Radio Station Tribal governmental entity), is operated considered a Public Broadcaster. exclusively for public purposes. § 380.31 Royalty fees for the public (d) Allocation between ephemeral Person is a natural person, a performance of sound recordings and for recordings and performance royalty corporation, a limited liability company, ephemeral recordings. fees. The Collective must credit 5% of a partnership, a trust, a joint venture, (a) Royalty rates. The total license fee all royalty payments as payment for any governmental authority or any other for all website Performances by Public Ephemeral Recordings and credit the entity or organization. Broadcasters during each year of the remaining 95% to section 114 royalties. Public Broadcasters are NPR, Term, up to the total Music ATH set All Ephemeral Recordings that a American Public Media, Public Radio forth in paragraphs (a)(1) through (5) of Licensee makes which are necessary International, and Public Radio this section for the relevant calendar and commercially reasonable for making Exchange, and up to 530 Originating year, and Ephemeral Recordings made noninteractive digital transmissions are Public Radio Stations as named by CPB. by Public Broadcasters solely to included in the 5%. CPB shall notify SoundExchange facilitate such website Performances, (e) Effect of non-performance by any annually of the eligible Originating shall be $800,000 (the ‘‘License Fee’’), Public Broadcaster. In the event that any Public Radio Stations to be considered unless additional payments are required Public Broadcaster violates any of the Public Broadcasters per this definition as described in paragraph (c) of this material provisions of 17 U.S.C. 112(e) (subject to the numerical limitations set section. The total Music ATH limits are: or 114 or this subpart that it is required forth in this definition). The number of (1) 2021: 360,000,000; to perform, the remedies of the Originating Public Radio Stations (2) 2022: 370,000,000; Collective shall be specific to that treated per this definition as Public (3) 2023: 380,000,000; Public Broadcaster only, and shall Broadcasters shall not exceed 530 for a (4) 2024: 390,000,000; and include, without limitation, termination given year without SoundExchange’s (5) 2025: 400,000,000. of that Public Broadcaster’s right to be express written approval, except that (b) Calculation of License Fee. It is treated as a Public Broadcaster per this CPB shall have the option to increase understood that the License Fee paragraph (e) upon written notice to the number of Originating Public Radio includes: CPB. The Collective and Copyright Stations that may be considered Public (1) An annual minimum fee for each Owners also shall have whatever rights Broadcasters as provided in § 380.31(c). Public Broadcaster for each year during may be available to them against that Side Channel is any internet-only the Term; Public Broadcaster under applicable program available on an Authorized (2) Additional usage fees for certain law. The Collective’s remedies for such website or an archived program on such Public Broadcasters; and a breach or failure by an individual Authorized website that, in either case, (3) A discount that reflects the Public Broadcaster shall not include conforms to all applicable requirements administrative convenience to the termination of the rights of other Public under 17 U.S.C. 114. Collective (for purposes of this subpart, Broadcasters to be treated as Public Term is the period January 1, 2021, the term ‘‘Collective’’ refers to Broadcasters per this paragraph (e), through December 31, 2025. SoundExchange, Inc.) of receiving except that if CPB fails to pay the

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License Fee or otherwise fails to Collective in five equal installments of www.regulations.gov. Follow the online perform any of the material provisions $800,000 each, which shall be due instructions for submitting comments. of this subpart, or such a breach or December 31, 2020, and annually Once submitted, comments cannot be failure by a Public Broadcaster results thereafter through December 31, 2024. edited or removed from Regulations.gov. from CPB’s inducement, and CPB does (b) Reporting. CPB and Public The EPA may publish any comment not cure such breach or failure within Broadcasters shall submit reports of use received to its public docket. Do not 30 days after receiving notice thereof and other information concerning submit electronically any information from the Collective, then the Collective website Performances as agreed upon you consider to be Confidential may terminate the right of all Public with the Collective. Business Information (CBI) or other Broadcasters to be treated as Public (c) Terms in general. Subject to the information whose disclosure is Broadcasters per this paragraph (e) upon provisions of this subpart, terms restricted by statute. Multimedia written notice to CPB. In such a case, a governing late fees, distribution of submissions (audio, video, etc.) must be prorated portion of the License Fee for royalties by the Collective, unclaimed accompanied by a written comment. the remainder of the Term (to the extent funds, record retention requirements, The written comment is considered the paid by CPB) shall, after deduction of treatment of Licensees’ confidential official comment and should include any damages payable to the Collective information, audit of royalty payments discussion of all points you wish to by virtue of the breach or failure, be and distributions, and any definitions make. The EPA will generally not credited to statutory royalty obligations for applicable terms not defined in this consider comments or comment of Public Broadcasters to the Collective subpart shall be those set forth in contents located outside of the primary for the Term as specified by CPB. subpart A of this part. submission (i.e., on the web, cloud, or (f) Use of contractors. The right to rely Dated: October 23, 2019. other file sharing system). For on this subpart is limited to Public Jesse M. Feder, additional submission methods, the full Broadcasters, except that a Public Chief Copyright Royalty Judge. EPA public comment policy, Broadcaster may employ the services of information about CBI or multimedia [FR Doc. 2019–23486 Filed 10–28–19; 8:45 am] a third Person to provide the technical submissions, and general guidance on BILLING CODE 1410–72–P services and equipment necessary to making effective comments, please visit deliver website Performances on behalf https://www.epa.gov/dockets/ of such Public Broadcaster, but only commenting-epa-dockets. through an Authorized website. Any ENVIRONMENTAL PROTECTION AGENCY FOR FURTHER INFORMATION CONTACT: Jeff agreement between a Public Broadcaster Hunt at (206) 553–0256, or hunt.jeff@ and any third Person for such services 40 CFR Part 52 epa.gov. shall: (1) Obligate such third Person to [EPA–R10–OAR–2019–0568, FRL–10001– SUPPLEMENTARY INFORMATION: provide all such services in accordance 57–Region 10] Throughout this document whenever with all applicable provisions of the ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, it is statutory licenses and this subpart; Air Plan Approval; Washington; intended to refer to the EPA. Update to the Adoption by Reference, (2) Specify that such third Person I. Background shall have no right to make website Energy Facility Site Evaluation Council By statute, EFSEC has jurisdiction for Performances or any other performances AGENCY: Environmental Protection managing the air program with respect or Ephemeral Recordings on its own Agency (EPA). to major energy facilities in the State of behalf or on behalf of any Person or ACTION: Proposed rule. Washington. See Chapter 80.50 of the entity other than a Public Broadcaster Revised Code of Washington (RCW). through the Public Broadcaster’s SUMMARY: The Environmental Protection The EFSEC air quality regulations are Authorized website by virtue of its Agency (EPA) is proposing to revise the contained in Chapter 463–78 services for the Public Broadcaster, Washington State Implementation Plan Washington Administrative Code including in the case of Ephemeral (SIP) to approve updates to the Energy (WAC) General and Operating Permit Recordings, pre-encoding or otherwise Facility Site Evaluation Council Regulations for Air Pollution Sources. establishing a library of sound (EFSEC) air quality regulations. The These EFSEC regulations rely primarily recordings that it offers to a Public EFSEC regulations apply to major on the adoption by reference of the Broadcaster or others for purposes of energy facilities in the State of corresponding Ecology general air making performances, but instead must Washington and establish permitting quality regulations contained in Chapter obtain all necessary licenses from the requirements and emissions standards 173–400 WAC General Regulations for Collective, the copyright owner or for such facilities. The EFSEC Air Pollution Sources, with certain another duly authorized Person, as the regulations primarily adopt by reference exceptions discussed below. case may be; the Washington Department of Ecology As discussed in our prior approval of (3) Specify that such third Person (Ecology) general air quality regulations the EFSEC regulations on May 30, 2017 shall have no right to grant any for program implementation. We are (82 FR 24531), EFSEC’s adoption by sublicenses under the statutory licenses; proposing to approve EFSEC’s updated reference of Chapter 173–400 WAC is and adoption by reference to include certain (4) Provide that the Collective is an modified in several ways. First, changes to Ecology’s general air quality references in Chapter 173–400 WAC intended third-party beneficiary of all regulations since EFSEC’s last adoption such obligations with the right to regarding appeals are modified to reflect by reference, consistent with prior EFSEC’s independent appeals process in enforce a breach thereof against such approvals. third Person. WAC 463–78–140. Second, the cross DATES: Comments must be received on references to fees under Chapter 173– § 380.32 Terms for making payment of or before November 29, 2019. 455 WAC are modified to reflect royalty fees and statements of account. ADDRESSES: Submit your comments, EFSEC’s independent fee structure set (a) Payment to the Collective. CPB identified by Docket ID No. EPA–R10– out in Chapter 80.50 RCW. Third, while shall pay the License Fee to the OAR–2018–0568 at https:// EFSEC generally adopts most of the

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provisions of Chapter 173–400 WAC by under section 110 of the CAA, or not update Ecology made to Chapter 173– reference, not all provisions are changed since the EPA’s last approval. 400–025 WAC ‘‘Adoption of federal included. For this reason, EFSEC’s previous SIP rules’’ which adopts by reference the EFSEC did not adopt by reference the revision, submitted on December 20, federal rules as they existed on January enforcement and authority provisions 2016, requested approval for only those 24, 2018. However, the specific Chapter contained in WAC 173–400–220 parts of Chapter 173–400 WAC 173–400 WAC provisions adopted by through 260. For these provisions, consistent with the EPA’s October 3, reference, and submitted to the EPA for EFSEC relies on its own independent 2014 (79 FR 59653), November 7, 2014 approval, also include changes to authorities, which are currently part of (79 FR 66291), and April 29, 2015 (80 Chapter 173–400 WAC approved by the Washington’s federally-approved SIP FR 23721) approvals. EPA on October 6, 2016 (81 FR 69385) under WAC 463–78–135 through 230. In other cases, such as WAC 173–400–118 II. Washington SIP Revisions and other recent changes to Chapter Designation of Class I, II, and III Areas, On September 30, 2019, Ecology 173–400 WAC contained in the WAC 173–400–151 Retrofit submitted EFSEC’s updated adoption by proposed SIP revision submittal Revised Requirements for Visibility Protection, reference of Chapter 173–400 WAC as Public Notice Provisions and Other and parts of WAC 173–400–070 an appendix to Ecology’s SIP revision, Changes to Chapters 173–400, 173–405, Emission Standards for Certain Source National Ambient Air Quality 173–410, and 173–415 WAC, included Categories, EFSEC did not adopt these Standards: Infrastructure State in the docket for this action. Chapter 173–400 WAC provisions by Implementation Plan for 2015 Ozone III. Proposed Action reference because they pertain to source and 2010 Sulfur Dioxide, to demonstrate categories or authorities outside the that the state has adequate infrastructure The EPA proposes to approve and scope of EFSEC’s jurisdiction. (statutory, regulatory, and programmatic incorporate by reference into the Lastly, many parts of Chapter 173–400 authority) to implement revised air Washington SIP the revised EFSEC quality standards.1 The updated WAC contain provisions that are not regulations listed in Table 1 and the related to the criteria pollutants adoption by reference was submitted corresponding updates to EFSEC’s regulated under title I of the CAA, not primarily to bring EFSEC’s regulatory adoption by reference in Table 2. related to the requirements for SIPs program current with the most recent

TABLE 1—ENERGY FACILITIES SITE EVALUATION COUNCIL (EFSEC) REGULATIONS FOR PROPOSED APPROVAL AND INCORPORATION BY REFERENCE

State State citation Title/subject effective date Explanations

Chapter 463–78 WAC, General and Operating Permit Regulations for Air Pollution Sources

78–005 ...... Adoption by Reference ...... 8/26/19 Subsection (1) only. See the table below for updated Chapter 173–400 WAC provisions adopted by reference and sub- mitted to the EPA for approval.

TABLE 2—REVISED CHAPTER 173–400 WAC, REGULATIONS ADOPTED BY REFERENCE IN WAC 463–78–005 2

State State citation Title/subject effective date Explanations

Washington Administrative Code, Chapter 173–400—General Regulations for Air Pollution Sources

173–400–025 ..... Adoption of Federal Rules ...... 9/16/18 173–400–030 ..... Definitions ...... 9/16/18 Except: 173–400–030(6); 173–400–030(32); 173–400– 030(38); 173–400–030(45); 173–400–030(83); 173–400– 030(89); 173–400–030(96); 173–400–030(97); 173–400– 030(100); 173–400–030(103); 173–400–030(104). 173–400–040 ..... General Standards for Maximum Emissions 9/16/18 Except: 173–400–040(2); 173–400–040(3); 173–400–040(5). 173–400–050 ..... Emission Standards for Combustion and In- 9/16/18 Except: 173–400–050(2); 173–400–050(4); 173–400–050(5); cineration Units. 173–400–050(6). 173–400–060 ..... Emission Standards for General Process 11/25/18 Units. 173–400–105 ..... Records, Monitoring, and Reporting ...... 11/25/18 173–400–111 ..... Processing Notice of Construction Applica- 07/01/16 Except: 173–400–111(3)(h); tions for Sources, Stationary Sources and The part of 173–400–111(8)(a)(v) that says, Portable Sources. • ‘‘and 173–460–040,’’; 173–400–111(9). 173–400–116 ..... Increment Protection ...... 07/01/16 173–400–171 ..... Public Notice and Opportunity for Public 9/16/18 Except: The part of 173–400–171(3)(b) that says, Comment. • ‘‘or any increase in emissions of a toxic air pollutant above the acceptable source impact level for that toxic air pollutant as regulated under chapter 173–460 WAC’’; 173–400–171(3)(o); 173–400–171(12).

1 The EPA intends to act on the remainder of 2 Many of the provision of Chapter 173–400 WAC 2019 SIP revision. Other revised Chapter 173–400 Ecology’s infrastructure SIP revision separately. adopted by reference remain unchanged since the WAC provisions were not submitted for approval as EPA’s last approval of EFSEC’s regulations and part of this current SIP update. were not resubmitted as part of the September 30,

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TABLE 2—REVISED CHAPTER 173–400 WAC, REGULATIONS ADOPTED BY REFERENCE IN WAC 463–78–005 2— Continued

State State citation Title/subject effective date Explanations

173–400–710 ..... Definitions ...... 07/01/16 173–400–720 ..... Prevention of Significant Deterioration 07/01/16 Except: 173–400–720(4)(a)(i through iv) and 173–400– (PSD). 720(4)(b)(iii)(C). 173–400–730 ..... Prevention of Significant Deterioration Ap- 07/01/16 plication Processing Procedures. 173–400–740 ..... PSD Permitting Public Involvement Re- 9/16/18 quirements. 173–400–810 ..... Major Stationary Source and Major Modi- 07/01/16 fication Definitions. 173–400–830 ..... Permitting Requirements ...... 07/01/16 173–400–840 ..... Emission Offset Requirements ...... 07/01/16 173–400–850 ..... Actual Emissions Plantwide Applicability 07/01/16 Limitation (PAL).

IV. Incorporation by Reference • Does not contain any unfunded provided state and local agencies in In this rule, the EPA is proposing to mandate or significantly or uniquely Washington authority over activities on include in a final EPA rule regulatory affect small governments, as described non-trust lands within the 1873 Survey text that includes incorporation by in the Unfunded Mandates Reform Act Area. Consistent with EPA policy, the of 1995 (Pub. L. 104–4); EPA provided a consultation reference. In accordance with • requirements of 1 CFR 51.5, the EPA is Does not have Federalism opportunity to the Puyallup Tribe in a proposing to incorporate by reference implications as specified in Executive letter dated May 16, 2019. Order 13132 (64 FR 43255, August 10, the regulations listed in section III of List of Subjects in 40 CFR Part 52 this proposal. The EPA has made, and 1999); • Is not an economically significant Environmental protection, Air will continue to make, these materials regulatory action based on health or pollution control, Carbon monoxide, generally available through safety risks subject to Executive Order Incorporation by reference, www.regulations.gov. 13045 (62 FR 19885, April 23, 1997); Intergovernmental relations, Lead, V. Statutory and Executive Orders • Is not a significant regulatory action Nitrogen dioxide, Ozone, Particulate Review subject to Executive Order 13211 (66 FR matter, Reporting and recordkeeping 28355, May 22, 2001); requirements, Sulfur oxides, Volatile Under the Clean Air Act, the • Administrator is required to approve a Is not subject to requirements of organic compounds. SIP submission that complies with the Section 12(d) of the National Authority: 42 U.S.C. 7401 et seq. provisions of the Act and applicable Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because Dated: October 16, 2019. Federal regulations. 42 U.S.C. 7410(k); Chris Hladick, 40 CFR 52.02(a). Thus, in reviewing SIP this action does not involve technical standards; and Regional Administrator, Region 10. submissions, the EPA’s role is to • approve state choices, provided that Does not provide the EPA with the [FR Doc. 2019–23516 Filed 10–28–19; 8:45 am] they meet the criteria of the Clean Air discretionary authority to address, as BILLING CODE 6560–50–P Act. Accordingly, this proposed action appropriate, disproportionate human merely approves state law as meeting health or environmental effects, using practicable and legally permissible ENVIRONMENTAL PROTECTION federal requirements and does not AGENCY impose additional requirements beyond methods, under Executive Order 12898 (59 FR 7629, February 16, 1994). those imposed by state law. For that 40 CFR Part 62 reason, this proposed action: The SIP is not approved to apply on • Is not a ‘‘significant regulatory any Indian reservation land in [EPA–R03–OAR–2019–0537; FRL–10001– action’’ subject to review by the Office Washington except as specifically noted 55–Region 3] of Management and Budget under below and is also not approved to apply in any other area where the EPA or an Approval and Promulgation of State Executive Orders 12866 (58 FR 51735, Plans for Designated Facilities and October 4, 1993) and 13563 (76 FR 3821, Indian tribe has demonstrated that a tribe has jurisdiction. In those areas of Pollutants; Virginia; Emission January 21, 2011); Standards for Existing Municipal Solid • Is not an Executive Order 13771 (82 Indian country, the rule does not have Waste Landfills FR 9339, February 2, 2017) regulatory tribal implications and will not impose action because SIP approvals are substantial direct costs on tribal AGENCY: Environmental Protection exempted under Executive Order 12866; governments or preempt tribal law as Agency (EPA). • Does not impose an information specified by Executive Order 13175 (65 ACTION: Proposed rule. collection burden under the provisions FR 67249, November 9, 2000). of the Paperwork Reduction Act (44 Washington’s SIP is approved to apply SUMMARY: The Environmental Protection U.S.C. 3501 et seq.); on non-trust land within the exterior Agency (EPA) is proposing to approve a • Is certified as not having a boundaries of the Puyallup Indian Clean Air Act (CAA) section 111(d) plan significant economic impact on a Reservation, also known as the 1873 submitted by the Virginia Department of substantial number of small entities Survey Area. Under the Puyallup Tribe Environmental Quality (VADEQ). This under the Regulatory Flexibility Act (5 of Indians Settlement Act of 1989, 25 plan was submitted to fulfill the U.S.C. 601 et seq.); U.S.C. 1773, Congress explicitly requirements of the CAA and in

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response to EPA’s promulgation of Section 111(d) of the CAA requires action. The scope of the proposed Emissions Guidelines and Compliance EPA to establish a procedure for a state approval of the section 111(d) plan is Times for municipal solid waste (MSW) to submit a plan to EPA which limited to the provisions of 40 CFR parts landfills. The Virginia plan establishes establishes standards of performance for 60 and 62 for existing MSW landfills, as emission limits for existing MSW any air pollutant: (1) For which air referenced in the emission guidelines, landfills, and provides for the quality criteria have not been issued or subpart Cf. implementation and enforcement of which is not included on a list The EPA Administrator continues to those limits. published under CAA section 108 or retain authority for approval of DATES: Written comments must be emitted from a source category which is alternative methods to determine the received on or before November 29, regulated under CAA section 112 but; nonmethane organic compound 2019. (2) to which a standard of performance concentration or a site-specific methane under CAA section 111 would apply if generation rate constant (k), as ADDRESSES: Submit your comments, such existing source were a new source. identified by Docket ID No. EPA–R03– stipulated in 40 CFR 60.30f(c), as well as EPA established these requirements for OAR–2019–0537 at https:// in Part 1, ‘‘Discretionary Authority,’’ of state plan submittal in 40 CFR part 60, www.regulations.gov, or via email to Virginia’s 111(d) plan submittal. subpart B. State submittals under CAA [email protected]. For comments sections 111(d) must be consistent with IV. Incorporation by Reference submitted at Regulations.gov, follow the the relevant emission guidelines, in this In this document, EPA is proposing to online instructions for submitting instance 40 CFR part 60, subpart Cf, and include in a final EPA rule regulatory comments. Once submitted, comments the requirements of 40 CFR part 60, text that includes incorporation by cannot be edited or removed from subpart B and part 62, subpart A. reference of the state plan. In Regulations.gov. For either manner of On August 29, 2019, the Virginia accordance with requirements of 1 CFR submission, EPA may publish any Department of Environmental Quality 51.5, EPA is proposing to incorporate by comment received to its public docket. (VADEQ) submitted to EPA a formal reference VADEQ rules regarding MSW Do not submit electronically any section 111(d) plan for existing landfills discussed in section II of this information you consider to be municipal solid waste landfills. The preamble. EPA has made, and will confidential business information (CBI) submitted section 111(d) plan was in continue to make, these materials or other information whose disclosure is response to the August 29, 2016 generally available through the docket restricted by statute. Multimedia promulgation of Federal New Source submissions (audio, video, etc.) must be for this action, EPA–R03–OAR–2019– Performance Standards (NSPS) and accompanied by a written comment. 0537, at https://www.regulations.gov emission guidelines requirements for The written comment is considered the and at the EPA Region III Office (please MSW landfills, 40 CFR part 60, subparts FOR official comment and should include contact the person identified in the XXX and Cf, respectively (76 FR 15372). discussion of all points you wish to FURTHER INFORMATION CONTACT section of make. EPA will generally not consider II. Summary of the Plan and EPA this preamble for more information). comments or comment contents located Analysis V. Statutory and Executive Order outside of the primary submission (i.e., EPA has reviewed the Virginia section Reviews on the web, cloud, or other file sharing 111(d) plan submittal in the context of In reviewing state plan submissions, system). For additional submission the requirements of 40 CFR part 60, EPA’s role is to approve state choices, methods, please contact the person subparts B and Cf, and part 62, subpart provided that they meet the criteria of identified in the FOR FURTHER A. In this action, EPA is proposing to the CAA. Accordingly, this action INFORMATION CONTACT section. For the determine that the submitted section merely approves state law as meeting full EPA public comment policy, 111(d) plan meets the above-cited Federal requirements and does not information about CBI or multimedia requirements. Included within the impose additional requirements beyond submissions, and general guidance on section 111(d) plan are regulations those imposed by state law. For that making effective comments, please visit under the Virginia state rule 9VAC5 reason, this proposed action: http://www2.epa.gov/dockets/ Chapter 40 Article 43.1, entitled • Is not a ‘‘significant regulatory commenting-epa-dockets. ‘‘Emission Standards for Municipal action’’ subject to review by the Office FOR FURTHER INFORMATION CONTACT: Solid Waste Landfills.’’ In this action, of Management and Budget under Cynthia Stahl, Permits Branch (3AD10), EPA is proposing to incorporate by Executive Orders 12866 (58 FR 51735, Air and Radiation Division, U.S. reference (IBR) Virginia state rule October 4, 1993) and 13563 (76 FR 3821, Environmental Protection Agency, 9VAC5 Chapter 40 Article 43.1, which January 21, 2011); Region III, 1650 Arch Street, became effective in the Commonwealth • Is not an Executive Order 13771 (82 Philadelphia, Pennsylvania 19103. The of Virginia on February 22, 2017. A FR 9339, February 2, 2017) regulatory telephone number is (215) 814–2180. detailed explanation of the rationale action because this action is not Ms. Stahl can also be reached via behind this proposed approval is significant under Executive Order electronic mail at stahl.cynthia@ available in the Technical Support 12866. epa.gov. Document (TSD). • Does not impose an information SUPPLEMENTARY INFORMATION: collection burden under the provisions III. Proposed Action of the Paperwork Reduction Act (44 I. Background EPA is proposing to approve the U.S.C. 3501 et seq.); On August 29, 2016, EPA finalized Virginia section 111(d) plan for MSW • Is certified as not having a Standards of Performance for MSW landfills submitted pursuant to 40 CFR significant economic impact on a landfills and Emission Guidelines and part 60, subpart Cf. Therefore, EPA is substantial number of small entities Compliance Times for MSW Landfills in proposing to amend 40 CFR part 62, under the Regulatory Flexibility Act (5 40 CFR part 60 subpart XXX and Cf, subpart XX to reflect this action. This U.S.C. 601 et seq.); respectively. 81 FR 59332 and 81 FR approval is based on the rationale • Does not contain any unfunded 59313. These actions were taken under previously discussed and in further mandate or significantly or uniquely section 111 of the CAA. detail in the TSD associated with this affect small governments, as described

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in the Unfunded Mandates Reform Act DEPARTMENT OF COMMERCE and will generally be posted for public of 1995 (Pub. L. 104–4); viewing on www.regulations.gov National Oceanic and Atmospheric • Does not have Federalism without change. All personal identifying Administration implications as specified in Executive information (e.g., name, address), Order 13132 (64 FR 43255, August 10, confidential business information, or 50 CFR Part 622 otherwise sensitive information 1999); [Docket No. 191022–0068] submitted voluntarily by the sender will • Is not an economically significant be publicly accessible. NMFS will regulatory action based on health or RIN 0648–BJ31 accept anonymous comments (enter safety risks subject to Executive Order ‘‘N/A’’ in required fields if you wish to Fisheries of the Caribbean, Gulf of 13045 (62 FR 19885, April 23, 1997); remain anonymous). Mexico, and South Atlantic; Snapper- • Is not a significant regulatory action Electronic copies of Regulatory Grouper Fishery of the South Atlantic Amendment 30 may be obtained from subject to Executive Order 13211 (66 FR Region; Regulatory Amendment 30 28355, May 22, 2001); www.regulations.gov or the Southeast AGENCY: National Marine Fisheries Regional Office website at https:// • Is not subject to requirements of Service (NMFS), National Oceanic and www.fisheries.noaa.gov/action/ Section 12(d) of the National Atmospheric Administration (NOAA), regulatory-amendment-30-red-grouper- Technology Transfer and Advancement Commerce. rebuilding-plan. Regulatory Amendment Act of 1995 (15 U.S.C. 272 note) because ACTION: Proposed rule; request for 30 includes an environmental application of those requirements would comments. assessment, a regulatory impact review, be inconsistent with the CAA; and and an initial regulatory flexibility • Does not provide EPA with the SUMMARY: NMFS proposes to implement analysis (IRFA). discretionary authority to address, as management measures described in FOR FURTHER INFORMATION CONTACT: appropriate, disproportionate human Regulatory Amendment 30 to the Mary Vara, NMFS Southeast Regional health or environmental effects, using Fishery Management Plan for the Office, telephone: 727–824–5305, or practicable and legally permissible Snapper-Grouper Fishery of the South email: [email protected]. methods, under Executive Order 12898 Atlantic Region (Snapper-Grouper SUPPLEMENTARY INFORMATION: The (59 FR 7629, February 16, 1994). FMP), as prepared and submitted by the snapper-grouper fishery in the South South Atlantic Fishery Management Atlantic region is managed under the In addition, this proposed approval of Council (Council). For red grouper, this Virginia’s state plan submittal for Snapper-Grouper FMP and includes red proposed rule would modify the grouper, among other snapper-grouper existing MSW landfills does not have spawning season closures for the species. The Snapper-Grouper FMP was tribal implications as specified by commercial and recreational sectors in prepared by the Council and is Executive Order 13175 (65 FR 67249, the exclusive economic zone (EEZ) off implemented by NMFS through November 9, 2000), because the state North Carolina and South Carolina and regulations at 50 CFR part 622 under the plan is not approved to apply in Indian establish a commercial trip limit. authority of the Magnuson-Stevens country located in the state, and EPA Additionally, Regulatory Amendment Fishery Conservation and Management notes that it will not impose substantial 30 would revise the rebuilding schedule Act (Magnuson-Stevens Act). direct costs on tribal governments or for red grouper. The purpose of this preempt tribal law. proposed rule and Regulatory Background Amendment 30 is to modify the In 2010, a Southeast Data, Assessment List of Subjects in 40 CFR Part 62 rebuilding schedule and extend and Review (SEDAR) benchmark Environmental protection, Air protections for red grouper. assessment (SEDAR 19, 2010) was pollution control, Incorporation by DATES: Written comments on the completed for South Atlantic red reference, Intergovernmental relations, proposed rule must be received by grouper. Based on the results of SEDAR Landfills, Methane, Ozone, Reporting November 29, 2019. 19, NMFS determined that red grouper and recordkeeping requirements, Sulfur ADDRESSES: You may submit comments was overfished and undergoing oxides, Volatile organic compounds. on the proposed rule, identified by overfishing. Amendment 24 to the ‘‘NOAA–NMFS–2019–0117,’’ by either Snapper-Grouper FMP established a 10- Authority: 42 U.S.C. 7401 et seq. of the following methods: year rebuilding plan that began in 2011, Dated: October 18, 2019. • Electronic submission: Submit all with an end date of 2020 (77 FR 34254; Cosmo Servidio, electronic comments via the Federal June 11, 2012). Management measures e-Rulemaking Portal. Go to https:// implemented through Amendment 24 Regional Administrator, Region III. www.regulations.gov/docket?D=NOAA- modified red grouper commercial and [FR Doc. 2019–23515 Filed 10–28–19; 8:45 am] NMFS-2019-0117, click the ‘‘Comment recreational annual catch limits (ACLs), BILLING CODE 6560–50–P Now!’’ icon, complete the required and sector-specific accountability fields, and enter or attach your measures (AMs). Amendment 24 also comments. removed the combined gag, black • Mail: Submit written comments to grouper, and red grouper commercial Mary Vara, NMFS Southeast Regional quota as well as the commercial and Office, 263 13th Avenue South, St. recreational ACLs and AMs. Petersburg, FL 33701. A stock assessment update (SEDAR Instructions: Comments sent by any 53) for red grouper was completed in other method, to any other address or February 2017 using data through 2015. individual, or received after the end of SEDAR 53 indicated the stock was still the comment period, may not be overfished and undergoing overfishing, considered by NMFS. All comments and that stock rebuilding would not be received are a part of the public record possible by 2020, which is the terminal

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year of the current rebuilding plan. South Carolina, red grouper spawning Measures in Regulatory Amendment 30 Therefore, on September 27, 2017, occurs during February through June Not Codified in This Proposed Rule NMFS sent a letter to the Council stating and peaks in April. This proposed rule The Council selected a 10-year that the South Atlantic red grouper would extend the January through April rebuilding plan for red grouper in stock was overfished and undergoing spawning season closure for red grouper Regulatory Amendment 30, which is the overfishing and not making adequate through May in the EEZ off North maximum allowed under the progress towards rebuilding. The Carolina and South Carolina for both the Magnuson-Stevens Act, and would Magnuson-Stevens Act requires the commercial and recreational sectors. begin in 2019 (Year 1) and end in 2028 implementation of management This action was developed in (Year 10). The Council determined that measures to end overfishing response to stakeholder concerns that a longer time period for red grouper to immediately and revise or implement a red grouper are often found in spawning rebuild would better accommodate the rebuilding plan within 2 years of condition past the January through uncertainty relative to recruitment and notification by NMFS to the Council of stock productivity. As described in this stock status. NMFS implemented April shallow-water grouper spawning season closure, particularly in May, in Regulatory Amendment 30, the red actions in Abbreviated Framework grouper stock has been experiencing Amendment 1 to the FMP on August 27, the EEZ off North Carolina and South Carolina. The Council did not propose multiple years of low recruitment (as 2018 (83 FR 35435), to immediately end evidenced by the SEDAR 53 stock overfishing of red grouper by reducing a similar May closure for the EEZ off Georgia or Florida in Regulatory assessment), and the lack of stock the total, commercial, and recreational rebuilding progress may largely be due ACLs based on the acceptable biological Amendment 30 based on stakeholder feedback that red grouper spawn earlier to ecosystem-related factors. catch recommendation from the Implementation of reduced total and in the year in the southern part of the Council’s Scientific and Statistical sector ACLs beginning in 2018, which Council’s jurisdiction. Additionally, the Committee. was specified in Abbreviated Council noted that there are minimal Continued harvest at the levels Framework Amendment 1, is expected landings of red grouper in Georgia, specified in Abbreviated Framework to end overfishing of South Atlantic red which would preclude the need to Amendment 1 is expected to allow for grouper. Given that poor recruitment rebuilding the red grouper stock within extend the closure past April in the EEZ appears to be the primary factor 10 years, but because the stock is not off that state. This proposed rule would currently affecting stock rebuilding, and projected to fully rebuild by 2020 also extend the prohibition on the projections upon which the (SEDAR 53), the Council must revise the commercial sale and purchase of red rebuilding schedules alternatives in current rebuilding plan so the stock grouper in the EEZ off South Carolina Regulatory Amendment 30 are based rebuilds in the timeframe mandated by and North Carolina from January assumed long-term average recruitment, the Magnuson-Stevens Act. Regulatory through May as part of the revised the Council selected the alternative for Amendment 30 addresses the proposed spawning season closure. the longest rebuilding schedule (10 revision to the rebuilding plan and is Commercial Trip Limit years) to account for the possibility that discussed below. future recruitment might be lower than The proposed rule for Regulatory There is currently no commercial trip assumed in the projections. Amendment 30 would extend the red limit for red grouper in the South Classification grouper spawning season prohibition for Atlantic. This proposed rule would the commercial and recreational sectors establish a commercial trip limit for red Pursuant to section 304(b)(1)(A) of the in the EEZ off North Carolina and South grouper harvested in the South Atlantic Magnuson-Stevens Act, the NMFS Carolina in response to stakeholder EEZ of 200 lb (91 kg), gutted weight. Assistant Administrator has determined concerns that red grouper are often The Council determined that the that this proposed rule is consistent found in spawning condition past the proposed trip limit would help to with the Snapper-Grouper FMP, the January through April shallow-water rebuild the red grouper stock by Magnuson-Stevens Act, and other grouper spawning season closure, discouraging directed commercial applicable laws, subject to further particularly in May. The proposed rule fishing for the species. However, the consideration after public comment. This rule has been determined to be also establishes a commercial trip limit proposed trip limit would likely not not significant for purposes of Executive for red grouper to help rebuild the stock substantially reduce the current level of Order 12866. This rule is not an and discourage direct fishing for the commercial harvest of red grouper as species. Executive Order 13771 regulatory action the majority of trips historically have because this rule is not significant under Management Measures Contained in landed less than 200 lb (91 kg) of red E.O. 12866. This Proposed Rule grouper. The trip limit would minimize NMFS prepared an IRFA, as required For red grouper, this proposed rule adverse socio-economic effects by by section 603 of the RFA, for this would modify the spawning season allowing fishers to retain red grouper proposed rule. The IRFA describes the closure for the commercial and caught incidentally when fishing for economic impact this proposed rule, if recreational sectors in the EEZ off North other snapper-grouper species. The adopted, would have on small entities. Carolina and South Carolina, and Council selected a commercial trip limit A description of the action, why it is establish a commercial trip limit. that in combination with extending the being considered, the objectives of, and spawning season closure for red grouper legal basis for this action are contained Commercial and Recreational Spawning off North Carolina and South Carolina at the beginning of this section in the Season Closure would constrain harvest to help rebuild preamble and in the SUMMARY section of Currently, the commercial and the stock. Further, the Council chose a the preamble. A copy of the full analysis recreational spawning season closure for trip limit that was large enough to allow is available from NMFS (see shallow-water groupers, which includes fishers for whom red grouper are an ADDRESSES). A summary of the IRFA red grouper, is January through April important species (such as those in follows. each year throughout the South Atlantic South Florida and the Florida Keys) to The Magnuson-Stevens Act provides EEZ. In the EEZ off North Carolina and maintain some trip profitability. the statutory basis for this proposed

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rule. No duplicative, overlapping, or previously, anglers are not small substantial number of small commercial conflicting Federal rules have been entities. fishing businesses that operate federally identified. A description of this The action to revise the seasonal permitted fishing vessels that harvest proposed rule and its purpose and need closure for the commercial sector would red grouper from the South Atlantic are contained in the SUMMARY section of add the month of May to the current EEZ. the preamble. January through April prohibition on Four alternatives to adding May to the The rule concerns commercial and fishing for and possession of red current 4-month January through April recreational fishing for red grouper in grouper in Federal waters off North prohibition on fishing for or possessing Federal waters of the South Atlantic. It Carolina and South Carolina. That red grouper in Federal waters off North directly effects both anglers additional month would eliminate from Carolina and South Carolina were (recreational fishers) and commercial 6,956 lb (3,155 kg), gutted weight, to considered, but were not selected. The fishing businesses that harvest red 12,477 lb (6,660 kg), gutted weight, of first alternative, the status quo, would grouper in the South Atlantic EEZ. red grouper commercially landed in have no impact on small businesses. Anglers are not considered small May, and the average annual loss per Two non-selected alternatives would entities as that term is defined in 5 Carolina vessel that lands red grouper in change the timing of the 4-month U.S.C. 601(6), whether fishing from for- May would range from 141 lb (64 kg), prohibition: From either February hire fishing, private, or leased vessels. gutted weight, to 210 lb (95 kg), gutted through May or March through June. A Therefore, neither estimates of the weight, and from $649 to $977 (2017 prohibition from February through May number of anglers nor the impacts on dollars). However, when differentiated would have a smaller adverse impact them are required or provided in this by state, the action would reduce the than the selected alternative; however, it analysis. average North Carolina vessel’s annual would have a smaller beneficial impact Any business that operates a revenue by $497 to $649 (2017 dollars) on the stock because snapper-grouper commercial fishing vessel that harvests (1.3 percent to 1.8 percent) and reduce fishing off North Carolina and South red grouper in the South Atlantic EEZ the average South Carolina vessel’s Carolina is at its lowest from January must have a valid Federal snapper- annual revenue by $713 to $977 (2017 through March. A March through June grouper permit attached to that vessel. dollars) (0.6 percent to 0.7 percent). prohibition would extend into the red Finally, the last action would grouper season that is in Federal waters From 2013 through 2017, an annual establish a 200-lb (91 kg), gutted weight, off North Carolina and off South average of 225 commercially permitted commercial trip limit in Federal waters Carolina, and its adverse impact would vessels reported landings of red grouper. of the South Atlantic in effect when be larger than the selected alternative. That annual average declined to 210 fishing is allowed. From 2013 through The fourth non-selected alternative from 2015 through 2017. Those two 2017, an annual average of nine vessels annual averages are used to estimate the landed more than 200 lb (91 kg), gutted would establish a 6-month prohibition range of vessels. NMFS expects all of weight, of red grouper in North Carolina that would have the largest adverse the businesses with the 210 to 225 and South Carolina from June through economic impact of all alternatives. vessels operate primarily in the December. Those nine vessels represent Four alternatives to a 200-lb (91-kg), commercial fishing industry. For RFA from 9.7 percent to 11.9 percent of the gutted weight, trip limit were purposes, NMFS has established a small vessels that land red grouper annually considered, but were not selected. In business size standard for businesses, in North Carolina and South Carolina. addition to the status quo of no including their affiliates, whose primary The proposed trip limit would reduce commercial trip limit, three other industry is commercial fishing (see 50 average landings by 107–117 lb (49–53 alternatives would have established CFR 200.2). A business primarily kg), gutted weight, per trip and average smaller trip limits. Those three involved in commercial fishing (NAICS dockside revenue from $498 to $538 alternatives would have a larger adverse 11411) is classified as a small business (2017 dollars). Those losses represent economic impact than the selected if it is independently owned and less than 1 percent of average annual alternative. operated, is not dominant in its field of revenues for North Carolina and South List of Subjects in 50 CFR Part 622 operation (including its affiliates), and Carolina vessels. its combined annual receipts are not in An annual average of three vessels Commercial, Fisheries, Fishing, Red excess of $11 million for all of its make seven trips that land more than grouper, Seasonal prohibition, South affiliated operations worldwide. The 200 lb (91 kg), gutted weight, of red Atlantic, Trip limits. average annual total revenue for a vessel grouper in Georgia and Florida from Dated: October 22, 2019. that lands red grouper is substantially May through December. Those three Samuel D. Rauch III, less than that. Moreover, none of the Florida/Georgia vessels represent from permitted vessels that landed red Deputy Assistant Administrator for 2.1 percent to 2.2 percent of permitted Regulatory Programs, National Marine grouper had annual revenue close to or vessels that land red grouper in Georgia Fisheries Service. greater than $11 million. Hence, all of and Florida annually. NMFS estimates For the reasons set out in the the businesses that operate permitted that each of the three vessels would lose preamble, 50 CFR part 622 is proposed vessels that land red grouper are small. from $3,441 to $3,471 (2017 dollars) in to be amended as follows: This rule would not impose dockside revenue annually. Those additional reporting or record-keeping figures represent from 6.5 percent to 6.6 PART 622—FISHERIES OF THE requirements on small businesses. The percent of the average Florida/Georgia CARIBBEAN, GULF, AND SOUTH action in Regulatory Amendment 30 to vessel’s dockside revenue from all ATLANTIC change the rebuilding schedule would landings; however, the three vessels have an indirect impact on small have annual revenues substantially ■ 1. The authority citation for part 622 businesses but that impact is dependent greater than the average for the 134 to continues to read as follows: on subsequent actions. The action to 143 Florida/Georgia vessels that land Authority: 16 U.S.C. 1801 et seq. revise the seasonal closure for the red grouper annually. recreational sector would have a direct NMFS concludes this rule may have ■ 2. In § 622.183, revise paragraph (b)(1) impact on anglers, but as explained a significant economic impact on a to read as follows:

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§ 622.183 Area and seasonal closures. or possessing red grouper in May apply issued, harvested from the South * * * * * in state waters off North Carolina and Atlantic, i.e., in state or Federal waters. (b) * * * off South Carolina. Additionally, in the month of May, no (1) Seasonal closure of the * * * * * person may sell or purchase South commercial and recreational sectors for ■ 3. In § 622.191, add paragraph (a)(14) Atlantic red grouper harvested from or gag and associated grouper species. to read as follows: possessed in the South Atlantic EEZ off During January through April each year, North Carolina or off South Carolina, or, no person may fish for, harvest, or § 622.191 Commercial trip limits. if harvested or possessed by a vessel for possess in or from the South Atlantic (a) * * * which a valid Federal commercial EEZ any South Atlantic shallow-water (14) Red grouper. Until the permit for South Atlantic snapper- grouper (SASWG): Gag, black grouper, commercial ACL specified in grouper has been issued, harvested in or red grouper, scamp, red hind, rock hind, § 622.193(d)(1)(iii) is reached—200 lb from the EEZ or state waters off North yellowmouth grouper, yellowfin (91 kg), gutted weight; 236 lb (107 kg), Carolina or off South Carolina. The grouper, graysby, and coney. For a round weight. See § 622.193(d)(1) for prohibitions on sale and purchase person on board a vessel for which a the limitations regarding red grouper during January through May do not valid Federal commercial or charter after the commercial ACL is reached. apply to such species that were vessel/headboat permit for South * * * * * harvested, landed ashore, and sold prior Atlantic snapper-grouper has been ■ 4. In § 622.192, revise paragraph (h) to to January 1 and were held in cold issued, these prohibitions against read as follows: storage by a dealer or processor. These fishing, harvesting, or possessing apply prohibitions also do not apply to a § 622.192 Restrictions on sale/purchase. in the South Atlantic, i.e., in state or dealer’s purchase or sale of such species Federal waters. Additionally, in the * * * * * harvested from an area other than the month of May, no person may fish for, (h) During January through April, no South Atlantic, provided such fish are harvest, or possess any South Atlantic person may sell or purchase a gag, black accompanied by documentation of red grouper in or from the South grouper, red grouper, scamp, red hind, harvest outside the South Atlantic. The Atlantic EEZ off North Carolina or off rock hind, yellowmouth grouper, requirements for such documentation South Carolina. For a person on board yellowfin grouper, graysby, or coney are specified in paragraph (i) of this a vessel for which a valid Federal harvested from or possessed in the section. commercial or charter vessel/headboat South Atlantic EEZ or, if harvested or permit for South Atlantic snapper- possessed by a vessel for which a valid * * * * * grouper has been issued, these Federal commercial permit for South [FR Doc. 2019–23437 Filed 10–28–19; 8:45 am] prohibitions against fishing, harvesting, Atlantic snapper-grouper has been BILLING CODE 3510–22–P

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Notices Federal Register Vol. 84, No. 209

Tuesday, October 29, 2019

This section of the FEDERAL REGISTER methodology and assumptions used; (c) Respondents: Non-profit institutions. contains documents other than rules or ways to enhance the quality, utility and Estimated Number of Respondents: 4. proposed rules that are applicable to the clarity of the information to be Estimated Total Annual Responses: public. Notices of hearings and investigations, collected; and (d) ways to minimize the 66. committee meetings, agency decisions and burden of the collection of information Estimated Number of Responses per rulings, delegations of authority, filing of on those who are to respond, including Respondent: 16.6. petitions and applications and agency Estimated Total Annual Burden on statements of organization and functions are through the use of appropriate examples of documents appearing in this automated, electronic, mechanical, or Respondents: 376 Hours. section. other technological collection Copies of this information collection techniques or other forms of information can be obtained from MaryPat Daskal, technology. Comments may be sent to: Management Analyst, Rural DEPARTMENT OF AGRICULTURE Thomas P. Dickson, Rural Development Development Innovation Center— Innovation Center—Regulatory Team 2, Regulatory Team 2, USDA, 1400 Rural Utilities Service USDA, 1400 Independence Avenue SW, Independence Avenue SW, STOP 1522, STOP 1522, South Building, South Building, Washington, DC 20250– Information Collection Activity; Washington, DC 20250–1522. 1522. Telephone: (202) 720–7853. Comment Request Telephone: (202) 690–4492. Email: Email: [email protected]. All responses to this notice will be AGENCY: Rural Utilities Service, USDA. [email protected]. summarized and included in the request ACTION: Notice; request for comments. Title: 7 CFR part 1783, Revolving Fund Program. for OMB approval. All comments will SUMMARY: In accordance with the OMB Control Number: 0572–0138. also become a matter of public record. Paperwork Reduction Act of 1995 (44 Type of Request: Extension of a Chad Rupe, U.S.C. Chapter 35, as amended), the currently approved information Administrator, Rural Utilities Service. United States Department of collection. [FR Doc. 2019–23586 Filed 10–28–19; 8:45 am] Agriculture’s Rural Utilities Service Abstract: The Rural Utilities Service BILLING CODE 3410–15–P (RUS), invites comments on this (RUS) supports the sound development information collection for which the of rural communities and the growth of Agency intends to request approval our economy without endangering the DEPARTMENT OF COMMERCE from the Office of Management and environment. One of the ways the Budget (OMB). Agency pursues this goal is to provide Foreign-Trade Zones Board DATES: Comments on this notice must be financial and technical assistance to received by December 30, 2019. help communities bring safe drinking [B–67–2019] FOR FURTHER INFORMATION CONTACT: water and sanitary, environmentally Foreign-Trade Zone (FTZ) 26—Atlanta, Thomas P. Dickson, Rural Development sound waste disposal facilities to rural Georgia; Notification of Proposed Innovation Center—Regulatory Team 2, Americans in greatest need. The Production Activity; Kubota North USDA, 1400 Independence Avenue SW, Revolving Fund Program (RFP) helps America Corporation (Agricultural and STOP 1522, South Building, qualified non-profits create a revolving Specialty Vehicles), Jefferson and Washington, DC 20250–1522. loan fund that can provide financing for Gainesville, Georgia Telephone: (202) 690–4492. Email the extension and improvement of water [email protected]. and waste disposal systems in rural Kubota North America Corporation SUPPLEMENTARY INFORMATION: The Office areas. Entities eligible for the revolving (Kubota) submitted a notification of of Management and Budget’s (OMB) loan fund will be the same entities proposed production activity to the FTZ regulation (5 CFR 1320) implementing eligible to obtain a loan, loan guarantee, Board for its facilities in Jefferson and provisions of the Paperwork Reduction or grant from RUS Water and Waste Gainesville, Georgia. The notification Act of 1995 (Pub. L. 104–13) requires Disposal and Wastewater loan and grant conforming to the requirements of the that interested members of the public programs. As grant recipients, the non- regulations of the FTZ Board (15 CFR and affected agencies have an profit organizations establish a 400.22) was received on October 18, opportunity to comment on information revolving loan fund to provide loans to 2019. collection and recordkeeping activities finance predevelopment costs of water Kubota already has authority to (see 5 CFR 1320.8(d)). This notice or wastewater projects, or short-term produce agricultural and specialty identifies an information collection that small capital projects not part of the vehicles within FTZ 26. The current RUS is submitting to OMB for extension regular operation and maintenance of request would add foreign status of an existing collection. Comments are current water and wastewater systems. components to the scope of authority. invited on: (a) Whether the proposed The collection of information consists of Pursuant to 15 CFR 400.14(b), collection of information is necessary the materials to file a grant application additional FTZ authority would be for the proper performance of the with the agency, including forms, limited to the specific foreign-status functions of the Agency, including certifications and required components described in the submitted whether the information will have documentation. notification (as described below) and practical utility; (b) the accuracy of the Estimate of Burden: Public reporting subsequently authorized by the FTZ Agency’s estimate of the burden of the burden for this collection of information Board. proposed collection of information is estimated to average 5.69 hour per Production under FTZ procedures including the validity of the response. could exempt Kubota from customs

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duty payments on the foreign-status activity to the FTZ Board on behalf of DEPARTMENT OF COMMERCE components used in export production. Cheniere Energy, Inc. (Cheniere), On its domestic sales, for the foreign- located in Portland, Texas. The International Trade Administration status components noted below, Kubota notification conforming to the [A–570–112] would be able to choose the duty rates requirements of the regulations of the during customs entry procedures that FTZ Board (15 CFR 400.22) was Certain Collated Steel Staples From apply to agricultural and specialty received on October 16, 2019. the People’s Republic of China: vehicles (duty-free). Kubota would be The applicant has submitted a Postponement of Preliminary able to avoid duty on foreign-status separate application for FTZ designation Determination in the Less-Than-Fair- components which become scrap/waste. Value Investigation Customs duties also could possibly be at the Cheniere facility under FTZ 122. deferred or reduced on foreign-status The facility will be used for liquified AGENCY: Enforcement and Compliance, production equipment. natural gas processing. Pursuant to 15 International Trade Administration, The materials/components sourced CFR 400.14(b), FTZ activity would be Department of Commerce. from abroad include: Bonnet bands; limited to the specific foreign-status DATES: Applicable October 29, 2019. radio kits; hour meters; and, air material and specific finished products FOR FURTHER INFORMATION CONTACT: conditioning units (duty rate ranges described in the submitted notification William Horn at (202) 482–4868 or from duty-free to 6.5%). The request (as described below) and subsequently Sergio Balbontin at (202) 482–6478, AD/ indicates that bonnet bands will be authorized by the FTZ Board. CVD Operations, Enforcement and admitted to the zone in privileged Production under FTZ procedures Compliance, International Trade foreign status (19 CFR 146.41), thereby could exempt Cheniere from customs Administration, U.S. Department of precluding inverted tariff benefits on duty payments on the foreign-status Commerce, 1401 Constitution Avenue such items. The request also indicates gaseous natural gas (duty-free) used in NW, Washington, DC 20230. that certain components are subject to export production. On its domestic SUPPLEMENTARY INFORMATION: special duties under Section 301 of the sales, for the foreign-status gaseous Background Trade Act of 1974 (Section 301), natural gas, Cheniere would be able to depending on the country of origin. The choose the duty rates during customs On July 3, 2019, the Department of applicable Section 301 decisions require entry procedures that apply to liquified Commerce (Commerce) initiated the subject merchandise to be admitted to natural gas and stabilized gas less-than-fair-value (LTFV) investigation FTZs in privileged foreign status (19 condensate (duty rates are duty-free and of imports of certain collated steel CFR 146.41). 10.5 cents/barrel, respectively). staples from the People’s Republic of 1 Public comment is invited from Cheniere would be able to avoid duty on China. The deadline for the interested parties. Submissions shall be the foreign-status material which preliminary determination is November addressed to the Board’s Executive become scrap/waste. Customs duties 13, 2019. Secretary and sent to: [email protected]. The also could possibly be deferred or Postponement of Preliminary closing period for their receipt is reduced on foreign-status production Determinations December 9, 2019. equipment. A copy of the notification will be Section 733(b)(1)(A) of the Tariff Act available for public inspection in the The request indicates that gaseous of 1930, as amended (the Act), requires ‘‘Reading Room’’ section of the Board’s natural gas is subject to special duties Commerce to issue the preliminary website, which is accessible via under Section 301 of the Trade Act of determination in an LTFV investigation www.trade.gov/ftz. 1974 (Section 301), depending on the within 140 days after the date on which For further information, contact country of origin. The applicable Commerce initiated the investigation. Christopher Wedderburn at Section 301 decisions require subject However, section 733(c)(1) of the Act [email protected] or (202) merchandise to be admitted to FTZs in permits Commerce to postpone the 482–1963. privileged foreign status (19 CFR preliminary determination until no later than 190 days after the date on which Dated: October 24, 2019. 146.41). Commerce initiated the investigation if: Public comment is invited from Andrew McGilvray, (A) The petitioner makes a timely interested parties. Submissions shall be Executive Secretary. request for a postponement; or (B) addressed to the Board’s Executive [FR Doc. 2019–23606 Filed 10–28–19; 8:45 am] Commerce concludes that the parties Secretary and sent to: [email protected]. The BILLING CODE 3510–DS–P concerned are cooperating, that the closing period for their receipt is investigation is extraordinarily December 9, 2019. complicated, and that additional time is DEPARTMENT OF COMMERCE A copy of the notification will be necessary to make a preliminary available for public inspection in the Foreign-Trade Zones Board determination. Under 19 CFR ‘‘Reading Room’’ section of the Board’s 351.205(e), the petitioner must submit a [B–66–2019] website, which is accessible via request for postponement 25 days or www.trade.gov/ftz. more before the scheduled date of the Foreign-Trade Zone (FTZ) 122—Corpus For further information, contact Diane preliminary determination and must Christi, Texas; Notification of state the reasons for the request. Proposed Production Activity; Finver at [email protected] or (202) 482–1367. Commerce will grant the request unless Cheniere Energy, Inc. (Liquified it finds compelling reasons to deny the Natural Gas Processing), Portland, Dated: October 22, 2019. request. Texas Andrew McGilvray, Executive Secretary. 1 See Certain Collated Steel Staples from the The Port of Corpus Christi Authority, People’s Republic of China, the Republic of Korea, [FR Doc. 2019–23605 Filed 10–28–19; 8:45 am] grantee of FTZ 122, submitted a and Taiwan: Initiation of Less-Than-Fair-Value notification of proposed production BILLING CODE 3510–DS–P Investigations, 84 FR 31833 (July 3, 2019).

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On October 2, 2019, the petitioner 2 DATES: Applicable October 29, 2019. for an administrative review regarding submitted a timely request that its own entries on June 13, 2019.6 FOR FURTHER INFORMATION CONTACT: Commerce postpone the preliminary Gene H. Calvert, AD/CVD Operations, Rescission of Review determination in this LTFV Office VII, Enforcement and investigation.3 Pursuant to 19 CFR 351.213(d)(1), the The petitioner stated that Compliance, International Trade it requests postponement to provide Secretary will rescind an administrative Administration, U.S. Department of review, in whole or in part, if the party adequate time for it and Commerce to Commerce, 1401 Constitution Avenue review the respondents’ questionnaire that requested the review withdraws the NW, Washington, DC 20230; telephone request within 90 days of the date of responses prior to the preliminary (202) 482–3586. determination. The petitioner requests publication of the notice of initiation of that Commerce fully extend the SUPPLEMENTARY INFORMATION: the requested review. As noted above, Shenzhen Technology and Suniva, the preliminary determination by 50 days. Background For the reason stated above and only interested parties that filed because there are no compelling reasons On February 8, 2019, Commerce requests for an administrative review for to deny the request, Commerce, in published in the Federal Register a this segment of the proceeding, each accordance with section 733(c)(1)(A) of notice of opportunity to request an timely withdrew its respective request the Act, is postponing the deadline for administrative review of the CVD order for all companies for which a review the preliminary determination by 50 on solar products from China for the was requested. Accordingly, Commerce days (i.e., 190 days after the date on POR.1 On February 25, 2019, Shenzhen is rescinding the administrative review which this investigation was initiated). Portable Electronic Technology Co., Ltd. of the CVD order on solar products from As a result, Commerce will issue its (Shenzhen Technology) a Chinese China for the period January 1, 2018, preliminary determination no later than exporter of the subject merchandise through December 31, 2018, in its January 2, 2020. In accordance with covered by the underlying CVD order, entirety. section 735(a)(1) of the Act and 19 CFR timely requested a review for its own Assessment 2 351.210(b)(1), the deadline for the final POR entries of subject merchandise. On Commerce will instruct U.S. Customs determination of this investigation will February 28, 2019, Suniva, Inc. and Border Protection (CBP) to assess continue to be 75 days after the date of (Suniva), a domestic producer of subject CVD duties on all appropriate entries of the preliminary determination, unless merchandise, timely requested a review solar products from China. CVD duties postponed at a later date. of 12 companies, one of which was shall be assessed at rates equal to the 3 This notice is issued and published Shenzhen Technology. Shenzhen cash deposit of estimated CVD duties pursuant to section 733(c)(2) of the Act Technology and Suniva each filed its required at the time of entry, or and 19 CFR 351.205(f)(1). request for review in accordance with withdrawal from warehouse, for Dated: October 23, 2019. section 751(a) of the Tariff Act of 1930, consumption, in accordance with 19 Jeffrey I. Kessler, as amended (the Act), and 19 CFR CFR 351.212(c)(1)(i). Commerce intends Assistant Secretary for Enforcement and 351.213(b). No other interested party to issue appropriate assessment Compliance. requested an administrative review of instructions to CBP 15 days after the [FR Doc. 2019–23578 Filed 10–28–19; 8:45 am] any company for this segment of the date of publication of this notice in the proceeding. Based on the requests filed BILLING CODE 3510–DS–P Federal Register. by Shenzhen Technology and Suniva, and in accordance with section 751(a) of Notice to Importers DEPARTMENT OF COMMERCE the Act and 19 CFR 351.221(c)(1)(i), on This notice serves as a reminder to May 2, 2019, Commerce initiated an importers of their responsibility under International Trade Administration administrative review of the CVD order 19 CFR 351.402(f)(2) to file a certificate on solar products from China covering regarding the reimbursement of CVD [C–570–011] the POR.4 duties prior to liquidation of relevant Crystalline Silicon Photovoltaic On May 2, 2019, Suniva timely entries during this review period. Products From the People’s Republic withdrew its request for the Failure to comply with this requirement of China: Rescission of Countervailing administrative review of all the could result in Commerce’s Duty Administrative Review; 2018 companies for which it requested an presumption that reimbursement of administrative review; 5 Shenzhen CVD duties occurred and the AGENCY: Enforcement and Compliance, Technology timely withdrew its request subsequent assessment of doubled CVD International Trade Administration, duties. Department of Commerce. 1 See Antidumping or Countervailing Duty Order, Notification Regarding Administrative SUMMARY: The Department of Commerce Finding, or Suspended Investigation; Opportunity Protective Orders (Commerce) is rescinding the to Request Administrative Review, 84 FR 2816 administrative review of the (February 8, 2019). This notice also serves as a reminder 2 countervailing duty (CVD) order on See Shenzhen Technology’s Letter, ‘‘Crystalline to all parties subject to administrative Silicon Photovoltaic Products from the People’s protective order (APO) of their crystalline silicon photovoltaic products Republic of China—Request for Administrative (solar products) from the People’s Review,’’ dated February 25, 2019. responsibility concerning the Republic of China (China) for the period 3 See Suniva’s Letter, ‘‘Crystalline Silicon disposition of proprietary information of review January 1, 2018, through Photovoltaic Products from the People’s Republic of disclosed under APO in accordance China: Request for Administrative Review,’’ dated December 31, 2018 (POR). with 19 CFR 351.305. Timely written February 28, 2019. notification of the return/destruction of 4 See Initiation of Antidumping and 2 The petitioner is Kyocera Senco Industrial Countervailing Duty Administrative Reviews, 84 FR APO materials or conversion to judicial Tools, Inc. 18777 (May 2, 2019). 3 See Petitioner’s Letter, ‘‘Certain Collated Steel 5 See Suniva’s Letter, ‘‘Crystalline Silicon 6 See Shenzhen Technology’s Letter, ‘‘Crystalline Staples from the People’s Republic of China: Photovoltaic Products from the People’s Republic of Silicon Photovoltaic Products from the People’s Request to Postpone Preliminary Antidumping Duty China: Withdraw of Request of Administrative Republic of China—Withdrawal of Request for Determination,’’ dated October 2, 2019. Review,’’ dated (May 2, 2019). Administrative Review,’’ dated June 13, 2019.

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protective order is hereby requested. On April 23, 2019, Commerce Weighted- Failure to comply with the regulations published the Preliminary Results.1 On average and terms of an APO is a sanctionable May 22 and 23, 2019, we received case Exporter/producer dumping margin violation. briefs from the Elque Group and (percent) This notice is issued and published in Magnum, respectively. On May 28, accordance with section 751(a)(1) and 2019, we received a rebuttal brief from Calcutta Seafoods Pvt. Ltd./Bay 777(i)(1) of the Act, and 19 CFR the petitioner.2 Seafood Pvt. Ltd./Elque & Co 110.90 351.213(d)(4.). Magnum Sea Foods Limited/ Scope of the Order Magnum Estates Limited ...... 1.87 Dated: October 24, 2019. James Maeder, The merchandise subject to the order Review-Specific Average Rate Deputy Assistant Secretary for Antidumping is certain frozen warmwater shrimp.3 Applicable to the Following and Countervailing Duty Operations. The product is currently classified Companies: 4 [FR Doc. 2019–23577 Filed 10–28–19; 8:45 am] under the following Harmonized Tariff BILLING CODE 3510–DS–P Schedule of the United States (HTSUS) Weighted- item numbers: 0306.17.00.03, average Exporter/producer dumping 0306.17.00.06, 0306.17.00.09, DEPARTMENT OF COMMERCE margin 0306.17.00.12, 0306.17.00.15, (percent) International Trade Administration 0306.17.00.18, 0306.17.00.21, 0306.17.00.24, 0306.17.00.27, Blue-Fin Frozen Foods Pvt. Ltd 1.87 0306.17.00.40, 1605.21.10.30, and Crystal Sea Foods Private Lim- [A–533–840] ited ...... 1.87 1605.29.10.10. Although the HTSUS Forstar Frozen Foods Pvt. Ltd ... 1.87 Certain Frozen Warmwater Shrimp numbers are provided for convenience Milsha Agro Exports Pvt. Ltd ...... 1.87 From India: Final Results of and customs purposes, the written Antidumping Duty Administrative product description remains dispositive. Assessment Rates Review; 2017–2018 Analysis of Comments Received Commerce shall determine, and U.S. AGENCY: Enforcement and Compliance, Customs and Border Protection (CBP) All issues raised in the case briefs by shall assess, antidumping duties on all International Trade Administration, parties are listed in the appendix to this Department of Commerce. appropriate entries. notice and addressed in the IDM. Parties Pursuant to 19 CFR 351.212(b)(1), SUMMARY: The Department of Commerce can find a complete discussion of these (Commerce) determines that certain because Magnum reported the entered issues and the corresponding value for all its U.S. sales, we calculated frozen warmwater shrimp (shrimp) from recommendations in this public India is being, or is likely to be, sold in importer-specific ad valorem duty memorandum, which is on file assessment rates based on the ratio of the United States at less than normal electronically via Enforcement and value during the period of review (POR) the total amount of antidumping duties Compliance’s Antidumping and calculated for the examined sales to the February 1, 2017 through January 31, Countervailing Duty Centralized 2018. total entered value of the sales for which Electronic Service System (ACCESS). entered value was reported. To DATES: Applicable October 29, 2019. ACCESS is available to registered users determine whether the duty assessment FOR FURTHER INFORMATION CONTACT: at http://access.trade.gov; the IDM is rates are de minimis, in accordance with Manuel Rey or Brittany Bauer, AD/CVD also available to all parties in the the requirement set forth in 19 CFR Operations, Office II, Enforcement and Central Records Unit, Room B8024, of 351.106(c)(2), we calculated importer- Compliance, International Trade the main Commerce building. In specific ad valorem ratios based on the Administration, U.S. Department of addition, a complete version of the IDM entered value. Commerce, 1401 Constitution Avenue can be accessed directly at http:// For the companies which were not NW, Washington, DC 20230; telephone: enforcement.trade.gov/frn/index.html. selected for individual examination, we (202) 482–5518 or (202) 482–3860, The signed IDM and the electronic used, as the assessment rate, the cash respectively. version of the IDM are identical in deposit rate assigned to Magnum, in 5 SUPPLEMENTARY INFORMATION: content. accordance with our practice. Commerce’s ‘‘automatic assessment’’ Background Final Results of the Review practice will apply to entries of subject merchandise during the POR produced Commerce is conducting an We are assigning the following by Magnum for which it did not know administrative review of the dumping margins to the firms listed that the merchandise was destined for antidumping duty order on shrimp from below for the POR February 1, 2017 the United States. In such instances, we India. This review covers six producers through January 31, 2018: and/or exporters of the subject will instruct CBP to liquidate merchandise. Commerce selected two unreviewed entries at the all-others rate 1 See Certain Frozen Warmwater Shrimp from if there is no rate for the intermediate mandatory respondents for individual India: Preliminary Results of Antidumping Duty examination: Calcutta Seafoods Pvt. Administrative Review; 2017–2018, 84 FR 16843 Ltd./Bay Seafood Pvt. Ltd./Elque & Co. (April 23, 2019) (Preliminary Results). 4 This rate is based on the rates for the (collectively, the Elque Group); and 2 The petitioner is the Ad Hoc Shrimp Trade respondents that were selected for individual Action Committee. review, excluding rates that are zero, de minimis or Magnum Sea Foods Limited/Magnum 3 For a complete description of the Scope of the based entirely on facts available. See section Estates Limited (collectively, Magnum). Order, see Memorandum, ‘‘Issues and Decision 735(c)(5)(A) of the Tariff Act of 1930, as amended The producers/exporters which were Memorandum for the Final Results of the 2017– (the Act). not selected for individual examination 2018 Antidumping Duty Administrative Review of 5 See, e.g., Certain Frozen Warmwater Shrimp Certain Frozen Warmwater Shrimp from India,’’ from India: Final Results of Antidumping Duty are listed in the ‘‘Final Results of the dated concurrently with, and hereby adopted by, Administrative Review; 2016–2017, 83 FR 32835 Review’’ section of this notice. this notice (IDM). (July 16, 2018).

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company(ies) involved in the administrative protective order (APO) of Constitution Avenue NW, Washington, transaction.6 their responsibility concerning the DC 20230; telephone: (202) 482–1646, Commerce intends to issue return or destruction of proprietary (202) 482–0413, or (202) 482–2924, assessment instructions to CBP 15 days information disclosed under the APO, respectively. after the date of publication of these which continues to govern business final results of review. proprietary information in this segment SUPPLEMENTARY INFORMATION: of the proceeding. Timely written Cash Deposit Requirements Background notification of the return or destruction The following cash deposit of APO materials or conversion to On August 7, 2018, Commerce requirements will be effective for all judicial protective order is hereby published in the Federal Register a shipments of subject merchandise requested. Failure to comply with the notice of opportunity to request an entered, or withdrawn from warehouse, regulations and terms of an APO is a administrative review of the for consumption on or after the violation subject to sanction. antidumping duty order on flanges from publication date of the final results of Notification to Interested Parties India, for the period February 8, 2017 this administrative review, as provided through July 31, 2018.1 Subsequently, by section 751(a)(2)(C) of the Act: (1) We are issuing and publishing this Commerce received timely requests for The cash deposit rates for the reviewed notice in accordance with sections an administrative review from companies will be the rates shown 751(a)(1) and 777(i) of the Act and 19 Weldbend Corporation and Boltex above, except if the rate is less than 0.50 CFR 351.213(h). Manufacturing Co., L.P. (collectively, percent (de minimis within the meaning Dated: October 21, 2019. the petitioners),2 Norma,3 Gupta,4 Jai of 19 CFR 351.106(c)(1)), the cash 5 Jeffrey I. Kessler, Auto Pvt. Ltd. (Jai Auto), and Bebitz deposit will be zero; (2) for previously Flanges Works Private Limited (Bebitz).6 reviewed or investigated companies not Assistant Secretary for Enforcement and Compliance. The petitioners requested an listed above, the cash deposit rate will administrative review of 35 companies,7 continue to be the company-specific rate Appendix whereas Norma, Gupta, Jai Auto and published for the most recent period; (3) List of Topics Discussed in the IDM Bebitz requested an administrative if the exporter is not a firm covered in review of themselves.8 On October 4, this review, a previous review, or the I. Summary II. Background 2018, Commerce initiated an original less-than-fair-value (LTFV) III. Scope of the Order administrative review of the Order for investigation, but the manufacturer is, IV. Discussion of the Issues the period February 8, 2017 through the cash deposit rate will be the rate Comment 1: Differential Pricing July 31, 2018, with respect to 37 established for the most recent period Comment 2: Adverse Facts Available companies.9 On November 9, 2018, for the manufacturer of the V. Recommendation Commerce selected Gupta and Norma as merchandise; and (4) the cash deposit [FR Doc. 2019–23534 Filed 10–28–19; 8:45 am] the mandatory respondents for this rate for all-other manufacturers or BILLING CODE 3510–DS–P exporters will continue to be 10.17 1 See Finished Carbon Steel Flanges from India percent, the all-others rate established and Italy: Antidumping Duty Orders, 82 FR 40136 in the LTFV investigation.7 These DEPARTMENT OF COMMERCE (August 24, 2017) (Order); see also Antidumping or deposit requirements, when imposed, Countervailing Duty Order, Finding, or Suspended International Trade Administration Investigation; Opportunity to Request shall remain in effect until further Administrative Review, 83 FR 38682, 38683 (August notice. [A–533–871] 7, 2018). 2 Notification to Importers See Petitioners’ Letter, ‘‘Finished Carbon Steel Finished Carbon Steel Flanges From Flanges from India: Request for Administrative This notice serves as the only India: Preliminary Results of Review,’’ dated August 31, 2018 (Petitioners’ reminder to importers of their Request for Review). Antidumping Duty Administrative 3 See Norma’s Letter, ‘‘Finished Carbon Steel responsibility, under 19 CFR Review; 2017–2018 Flanges from India: Request for entry of appearance 351.402(f)(2), to file a certificate in the Anti-Dumping Duty Administrative Review regarding the reimbursement of AGENCY: Enforcement and Compliance, for Norma (India) Limited, USK Export Private antidumping duties prior to liquidation International Trade Administration, Limited, Umashanker Khandelwal and Co. and Bansidhar Chiranjilal,’’ dated August 28, 2018 of the relevant entries during this Department of Commerce. (Norma’s Request for Review). review period. Failure to comply with SUMMARY: The Department of Commerce 4 See Gupta’s Letter, ‘‘Finished Carbon Steel this requirement could result in (Commerce) preliminarily finds that Flanges from India: Request for Anti-Dumping Duty Commerce’s presumption that Norma (India) Limited (Norma) and R.N. Administrative Review,’’ dated August 30, 2018 reimbursement of antidumping duties (Gupta’s Request for Review). Gupta & Co. Ltd. (Gupta), producers/ 5 See Jai Auto’s Letter, ‘‘Request for Anti- occurred and the subsequent assessment exporters of finished carbon steel Dumping Duty Administrative Review of finished of double antidumping duties. flanges (flanges) from India, sold subject carbon steel flanges from India,’’ dated August 31, 2018; see also Jai Auto’s Letter, ‘‘Finished Carbon Administrative Protective Order merchandise at prices below normal value during the period of review (POR) Steel Flanges from India: Requests for In accordance with 19 CFR Administrative Review,’’ dated August 31, 2018 (Jay February 8, 2017 through July 31, 2018. Auto’s Request for Review). 351.305(a)(3), this notice also serves as We invite interested parties to comment 6 See Bebitz’s Letter, ‘‘Finished Carbon Steel a reminder to parties subject to on these preliminary results. Flanges from India: Requests for Administrative Review,’’ dated August 31, 2018 (Bebitz’s Request DATES: Applicable October 29, 2019. 6 For a full discussion of this practice, see for Review). Antidumping and Countervailing Duty Proceedings: FOR FURTHER INFORMATION CONTACT: 7 See Petitioners’ Request for Review, at 2–3. Assessment of Antidumping Duties, 68 FR 23954 Heather Lui, Paul Walker, or Fred Baker, 8 See Norma’s Request for Review; Gupta’s (May 6, 2003). AD/CVD Operations, Office VI, Request for Review; Jai Auto’s Request for Review; 7 See Notice of Amended Final Determination of and Bebitz’s Request for Review. Sales at Less Than Fair Value and Antidumping Enforcement and Compliance, 9 See Initiation of Antidumping and Duty Order: Certain Frozen Warmwater Shrimp International Trade Administration, Countervailing Duty Administrative Reviews, 83 FR from India, 70 FR 5147, 5148 (February 1, 2005). U.S. Department of Commerce, 1401 50077 (October 4, 2018) (Initiation Notice).

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review.10 For a complete description of margins established for exporters and Weighted- the events that followed the initiation of producers individually investigated, average this review, see the Preliminary excluding any zero or de minimis Exporter/manufacturer dumping 11 margin Decision Memorandum. margins, and any margins determined (percent) Commerce exercised its discretion to entirely {on the basis of facts toll all deadlines affected by the closure available}.’’ In this segment of the Norma (India) Limited/USK Ex- of the federal government from proceeding, we calculated a margin for ports Private Limited/Uma December 22, 2018, through the Norma and Gupta that was not zero, de Shanker Khandelwal & Co./ resumption of operations on January 29, minimis, or based entirely on facts Bansidhar Chiranjilal 16 ...... 2.22 2019.12 On June 7, 2019 and September available. Accordingly, Commerce Adinath International ...... 1.71 6, 2019, Commerce extended the preliminarily has assigned to the Allena Group ...... 1.71 Alloyed Steel ...... 1.71 deadline for the preliminary results of companies not individually examined a this administrative review, in Bebitz Flanges Works Private margin of 1.71 percent, which is the Limited ...... 1.71 accordance with section 751(a)(3)(A) of simple average of Gupta’s and Norma’s C.D. Industries ...... 1.71 the Tariff Act of 1930, as amended (the calculated weighted-average dumping CHQ Forge Pvt. Ltd ...... 1.71 Act) and 19 CFR 351.213(h)(2).13 The margins.15 CHW Forge ...... 1.71 current deadline is October 10, 2019. Citizen Metal Depot ...... 1.71 Methodology Corum Flange ...... 1.71 Scope of the Order Commerce is conducting this review DN Forge Industries ...... 1.71 The merchandise covered by the in accordance with sections 751(a)(1)(B) Echjay Forgings Limited ...... 1.71 Order is finished carbon steel flanges and (2) of the Act. Export price is Falcon Valves and Flanges Pri- from India. The product is currently vate Limited ...... 1.71 calculated in accordance with section Heubach International ...... 1.71 classified under subheadings 772 of the Act. Normal value is 7307.91.5010 and 7307.91.5050 of the Hindon Forge Pvt. Ltd ...... 1.71 calculated in accordance with section Jai Auto Private Limited ...... 1.71 Harmonized Tariff System of the United 773 of the Act. Kinnari Steel Corporation ...... 1.71 States (HTSUS). Although the HTSUS For a full description of the M F Rings and Bearing Races subheadings are provided for methodology underlying our Ltd ...... 1.71 convenience and customs purposes, the conclusions, see the Preliminary Mascot Metal Manufactures ...... 1.71 written description of merchandise Decision Memorandum. The OM Exports ...... 1.71 subject to the scope is dispositive.14 Preliminary Decision Memorandum is a Punjab Steel Works (PSW) ...... 1.71 R. D. Forge ...... 1.71 Companies Not Selected for Individual public document and is on file Raaj Sagar Steels ...... 1.71 Examination electronically via Enforcement and Ravi Ratan Metal Industries ...... 1.71 Compliance’s Antidumping and For companies not selected for Rolex Fittings India Pvt. Ltd ...... 1.71 Countervailing Duty Centralized individual examination in an Rollwell Forge Pvt. Ltd ...... 1.71 Electronic Service System (ACCESS). SHM (ShinHeung Machinery) ..... 1.71 administrative review, generally, ACCESS is available to registered users Siddhagiri Metal and Tubes ...... 1.71 Commerce looks to section 735(c)(5) of at http://access.trade.gov, and to all Sizer India ...... 1.71 the Act, which provides instructions for parties in the Central Records Unit, Steel Shape India ...... 1.71 calculating the all-others rate in a room B8024 of the main Commerce Sudhir Forgings Pvt. Ltd ...... 1.71 market economy investigation. Under Tirupati Forge ...... 1.71 building. In addition, a complete section 735(c)(5)(A) of the Act, the all- Umashanker Khandelwal Forg- version of the Preliminary Decision others rate is normally ‘‘an amount ing Limited ...... 1.71 Memorandum can be accessed at http:// equal to the weighted-average of the enforcement.trade.gov/frn/index.html. estimated weighted-average dumping Disclosure and Public Comment The signed Preliminary Decision Memorandum and the electronic 10 See Memorandum, ‘‘Antidumping Duty Commerce intends to disclose the Administrative Review of Finished Carbon Steel version of the Preliminary Decision calculations performed in connection Flanges from India: Respondent Selection,’’ dated Memorandum are identical in content. with these preliminary results to November 9, 2018. A list of the topics discussed in the interested parties within five days of the 11 See Memorandum, ‘‘Decision Memorandum for Preliminary Decision Memorandum is date of publication of this notice in Preliminary Results of Antidumping Duty Administrative Review: Finished Carbon Steel attached as an Appendix to this notice. accordance with 19 CFR 351.224(b). Flanges from India; 2017–2018,’’ dated concurrently Preliminary Results of the Review with, and hereby adopted by, this notice 16 In the preliminary determination of the less- (Preliminary Decision Memorandum). As a result of this review, Commerce than-fair value investigation, Commerce determined 12 See Memorandum to the Record from Gary preliminarily determines that the that Norma (India) Limited; USK Exports Private Taverman, Deputy Assistant Secretary for following weighted-average dumping Limited; Uma Shanker Khandelwal & Co.; and Antidumping and Countervailing Duty Operations Bansidhar Chiranjilal were a single entity. See for Enforcement and Compliance, ‘‘Deadlines margins exist for the period February 8, Finished Carbon Steel Flanges from India: Affected by the Partial Shutdown of the Federal 2017 through July 31, 2018: Preliminary Determination of Sales at Less Than Government,’’ dated January 28, 2019. All deadlines Fair Value and Postponement of Final in this segment of the proceeding have been Weighted- Determination, 82 FR 9719 (February 8, 2017) and extended by 40 days. average accompanying Preliminary Decision Memorandum 13 See Memorandum, ‘‘Finished Carbon Steel Exporter/manufacturer dumping at 4–5; unchanged in Finished Carbon Steel Flanges Flanges from India: Extension of Deadline for margin from India: Final Determination of Sales at Less Preliminary Results of Antidumping Duty (percent) Than Fair Value, 82 FR 29483 (June 29, 2017). In Administrative Review,’’ dated June 7, 2019; see these preliminary results, Norma has presented also Memorandum, ‘‘Finished Carbon Steel Flanges R. N. Gupta & Co., Ltd ...... 1.20 evidence that the factual basis on which Commerce from India: Extension of Deadline for Preliminary made its prior determination has not changed. See Results of Antidumping Duty Administrative Norma’s March 1, 2019 Supplemental Review,’’ dated September 6, 2019. 15 See Memorandum, ‘‘Finished Carbon Steel Questionnaire Response (Norma March 1, 2019 14 A full description of the scope of the Order is Flanges from India: Calculation of Non-Examined SQR) at 12–20. Therefore, in this administrative contained in the Preliminary Decision Companies’ Rate,’’ dated concurrently with this review, Commerce continues to collapse these four Memorandum. notice. entities, and treats them as a single entity.

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Interested parties may submit case calculated for the examined sales to the shall remain in effect until further briefs to Commerce no later than 30 total entered value of the examined notice. days after the date of publication of this sales to that importer, and we will Notification to Interested Parties notice.17 Rebuttal briefs, limited to instruct CBP to assess antidumping issues raised in the case briefs, may be duties on all appropriate entries covered This notice also serves as a filed not later than five days after the by this review. If Norma and Gupta’s preliminary reminder to importers of date for filing case briefs.18 Pursuant to weighted-average dumping margin their responsibility under 19 CFR 19 CFR 351.309(c)(2) and (d)(2), parties continues to be zero or de minimis, or 351.402(f)(2) to file a certificate who submit case briefs or rebuttal briefs the importer-specific assessment rate is regarding the reimbursement of in this proceeding are encouraged to zero or de minimis, we will instruct CBP antidumping duties prior to liquidation submit with each argument: (1) A to liquidate the appropriate entries of the relevant entries during this statement of the issue; (2) a brief without regard to antidumping duties.22 review period. Failure to comply with summary of the argument; and (3) a In accordance with Commerce’s this requirement could result in the table of authorities. ‘‘automatic assessment’’ practice, for Secretary’s presumption that Interested parties who wish to request entries of subject merchandise during reimbursement of antidumping duties a hearing must submit a written request the POR produced by Norma and Gupta occurred and the subsequent assessment to the Assistant Secretary for for which each company did not know of double antidumping duties. Enforcement and Compliance, U.S. that the merchandise was destined for Unless the deadline is extended Department of Commerce, using the United States, we will instruct CBP pursuant to section 751(a)(2)(B)(iv) of Enforcement and Compliance’s ACCESS we will instruct CBP to liquidate those the Act and 19 CFR 351.213(h)(2), system within 30 days of publication of entries at the all-others rate if there is no Commerce intends to issue the final this notice. 19 Requests should contain: rate for the intermediate company(ies) results of this administrative review, (1) The party’s name, address, and involved in the transaction.23 including the results of its analysis of telephone number; (2) the number of We intend to issue instructions to issues raised in any written briefs, not participants; and (3) a list of issues to be CBP 15 days after the date of later than 120 days after the date of discussed. Issues raised in the hearing publication of the final results of this publication of this notice.25 will be limited to those raised in the review. We are issuing and publishing these respective case and rebuttal briefs. If a Cash Deposit Requirements results in accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 request for a hearing is made, Commerce The following deposit requirements CFR 351.221(b)(4). intends to hold the hearing at the U.S. will be effective upon publication of the Department of Commerce, 1401 notice of final results of administrative Dated: October 10, 2019. Constitution Avenue NW, Washington, review for all shipments of the subject Jeffrey I. Kessler, DC 20230, at a time and date to be merchandise entered, or withdrawn Assistant Secretary for Enforcement and determined. Parties should confirm by from warehouse, for consumption on or Compliance. telephone the date, time, and location of after the publication date, as provided Appendix the hearing two days before the by section 751(a)(2)(C) of the Act: (1) scheduled date. The cash deposit rate for Norma and List of Topics Discussed in the Preliminary All submissions to Commerce must be Gupta will be the rate established in the Decision Memorandum filed electronically using ACCESS, and final results of this review, except if the I. Summary must also be served on interested rate is de minimis within the meaning II. Background parties.20 An electronically filed of 19 CFR 351.106(c)(1) (i.e., less than III. Scope of the Order document must be received successfully 0.50 percent), in which case the cash IV. Rates for Non-Examined Companies in its entirety by Commerce’s electronic deposit rate will be zero; (2) for V. Comparisons to Normal Value VI. Recommendation records system, ACCESS, by 5:00 p.m. merchandise exported by manufacturers Eastern Time on the date that the or exporters not covered in this review [FR Doc. 2019–23533 Filed 10–28–19; 8:45 am] document is due. but covered in a prior segment of the BILLING CODE 3510–DS–P Assessment Rates proceeding, the cash deposit rate will continue to be the company-specific rate Upon issuance of the final results, published for the most recently- COMMODITY FUTURES TRADING Commerce shall determine, and U.S. completed segment; (3) if the exporter is COMMISSION Customs and Border Protection (CBP) not a firm covered in this review, a prior shall assess, antidumping duties on all review, or the original investigation, but Agency Information Collection appropriate entries covered by this the manufacturer is, the cash deposit Activities Under OMB Review review.21 rate will be the rate established for the If Norma and Gupta’s calculated AGENCY: Commodity Futures Trading most recently-completed segment for Commission. weighted-average dumping margin is the manufacturer of the merchandise; above de minimis (i.e., greater than or and (4) the cash deposit rate for all other ACTION: Notice. equal to 0.5 percent) in the final results manufacturers or exporters will SUMMARY: In compliance with the of this review, we will calculate continue to be 11.95 percent, the all- importer-specific ad valorem duty Paperwork Reduction Act of 1995 others rate established in the less-than- (‘‘PRA’’), this notice announces that the assessment rates based on the ratio of fair-value investigation.24 These cash the total amount of antidumping duties Information Collection Request (‘‘ICR’’) deposit requirements, when imposed, abstracted below has been forwarded to the Office of Management and Budget 17 See 19 CFR 351.309(c)(1)(ii). 22 See 19 CFR 351.106(c)(2). 18 (‘‘OMB’’) for review and comment. The See 19 CFR 351.309(d). 23 For a full discussion of this clarification, see 19 See 19 CFR 351.310(c). Antidumping and Countervailing Duty Proceedings: ICR describes the nature of the 20 See 19 CFR 351.303 (for general filing Assessment of Antidumping Duties, 68 FR 23954 requirements). (May 6, 2003). 25 See section 751(a)(3)(A) of the Act; and 19 CFR 21 See 19 CFR 351.212(b)(1). 24 See Order, 82 FR at 40138. 351.213(h).

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information collection and its expected be inappropriate for publication, such as Estimated Total Annual Burden costs and burden. obscene language. All submissions that Hours: 25 hours. DATES: Comments must be submitted on have been redacted or removed that Frequency of Collection: On occasion; or before November 29, 2019. contain comments on the merits of the annually. There are no capital costs or operating ADDRESSES: Comments regarding the ICR will be retained in the public comment file and will be considered as and maintenance costs associated with burden estimate or any other aspect of this collection. the information collection, including required under the Administrative suggestions for reducing the burden, Procedure Act and other applicable (Authority: 44 U.S.C. 3501 et seq.) may be submitted directly to the Office laws, and may be accessible under the Dated: October 24, 2019. Freedom of Information Act. of Information and Regulatory Affairs Robert Sidman, (‘‘OIRA’’) in OMB, within 30 days of FOR FURTHER INFORMATION CONTACT: Deputy Secretary of the Commission. Melissa D’Arcy, Special Counsel, this notice’s publication, by either of the [FR Doc. 2019–23569 Filed 10–28–19; 8:45 am] Division of Clearing and Risk, following methods. Please identify the BILLING CODE 6351–01–P comments by ‘‘OMB Control No. 3038– Commodity Futures Trading 0102.’’ Commission, Three Lafayette Centre, • By email addressed to: 1155 21st Street NW, Washington, DC COMMODITY FUTURES TRADING [email protected]; or 20581; (202) 418–5086; email: mdarcy@ COMMISSION • By mail addressed to: The Office of cftc.gov, and refer to ‘‘OMB Control No. Information and Regulatory Affairs, 3038–0102.’’ Agency Information Collection Office of Management and Budget, SUPPLEMENTARY INFORMATION: Activities Under OMB Review Attention Desk Officer for the Title: ‘‘Clearing Exemption for Certain AGENCY: Commodity Futures Trading Commodity Futures Trading Swaps Entered into by Cooperatives,’’ Commission. Commission, 725 17th Street NW, (OMB Control No. 3038–0102). This is ACTION: Washington, DC 20503. a request for an extension of a currently Notice. A copy of all comments submitted to approved information collection. SUMMARY: In compliance with the OIRA should be sent to the Commodity Abstract: Section 2(h)(1)(A) of the Paperwork Reduction Act of 1995 Futures Trading Commission Commodity Exchange Act requires (‘‘PRA’’), this notice announces that the (‘‘Commission’’) by any of the following certain entities to submit for clearing Information Collection Request (‘‘ICR’’) methods. The copies should refer to certain swaps if they are required to be abstracted below has been forwarded to ‘‘OMB Control No. 3038–0102.’’ cleared by the Commission. the Office of Management and Budget • By mail addressed to: Christopher Commission regulation 50.51 permits (‘‘OMB’’) for review and comment. The Kirkpatrick, Secretary of the certain cooperatives to elect not to clear ICR describes the nature of the Commission, Commodity Futures certain swaps that otherwise would be information collection and its expected Trading Commission, Three Lafayette required to be cleared, provided that costs and burden. Centre, 1155 21st Street NW, they meet certain conditions. The rule DATES: Comments must be submitted on Washington, DC 20581; further requires the reporting of certain or before November 29, 2019. • By Hand Delivery/Courier to the information if the exemption for ADDRESSES: Comments regarding the same address; or cooperatives is elected. This collection • burden estimate or any other aspect of Through the Commission’s website pertains to information the Commission the information collection, including at http://comments.cftc.gov. Please needs to monitor use of the cooperative suggestions for reducing the burden, follow the instructions for submitting exemption and assess market risk in may be submitted directly to the Office comments through the website. connection therewith. An agency may of Information and Regulatory Affairs A copy of the supporting statement not conduct or sponsor, and a person is (‘‘OIRA’’) in OMB within 30 days of this for the collection of information not required to respond to, a collection notice’s publication by either of the discussed herein may be obtained by of information unless it displays a following methods. Please identify the visiting http://RegInfo.gov. currently valid OMB control number. comments by ‘‘OMB Control No. 3038– All comments must be submitted in On August 22, 2019, the Commission 0085.’’ English, or if not, accompanied by an published in the Federal Register notice • By email addressed to: English translation. Comments will be of the proposed extension of this [email protected]; or posted as received to http:// information collection and provided 60 • By mail addressed to: The Office of www.cftc.gov. You should submit only days for public comment on the Information and Regulatory Affairs, information that you wish to make proposed extension, 84 FR 43796 (‘‘60- Office of Management and Budget, available publicly. If you wish the Day Notice’’). The Commission received Attention Desk Officer for the Commission to consider information no substantive comments in response to Commodity Futures Trading that you believe is exempt from the 60-Day Notice. Accordingly, the Commission, 725 17th Street NW, disclosure under the Freedom of Commission continues to believe that Washington, DC 20503. Information Act, a petition for the burden estimates published in the A copy of all comments submitted to confidential treatment of the exempt 60-Day Notice are appropriate. OIRA should be sent to the Commodity information may be submitted according Burden Statement: The respondent Futures Trading Commission to the procedures established in § 145.9 burden for this collection is estimated to (‘‘Commission’’) by any of the following of the Commission’s regulations.1 The be as follows: methods. The copies should refer to Commission reserves the right, but shall Respondents/Affected Entities: Parties ‘‘OMB Control No. 3038–0085.’’ have no obligation, to review, pre- electing the cooperative exemption • By mail addressed to: Christopher screen, filter, redact, refuse or remove under Commission regulation 50.51. Kirkpatrick, Secretary of the any or all of your submission from Estimated Number of Respondents: Commission, Commodity Futures http://www.cftc.gov that it may deem to 25. Trading Commission, Three Lafayette Estimated Average Burden Hours per Centre, 1155 21st Street NW, 1 17 CFR 145.9. Respondent: 1 hour. Washington, DC 20581;

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• By Hand Delivery/Courier to the 2(h)(7) of the CEA, as added by the Frequency of Collection: On occasion; same address; or Dodd-Frank Act, also provides that a annually. • Through the Commission’s website swap otherwise subject to the clearing There are no capital costs or operating at http://comments.cftc.gov. Please requirement is eligible for an elective and maintenance costs associated with follow the instructions for submitting exception from clearing if one party to this collection. comments through the website. the swap is not a financial entity, is (Authority: 44 U.S.C. 3501 et seq.) A copy of the supporting statement using swaps to hedge or mitigate for the collection of information commercial risk, and notifies the Dated: October 24, 2019. discussed herein may be obtained by Commission, in a manner set forth by Robert Sidman, visiting http://RegInfo.gov. the Commission, how it generally meets Deputy Secretary of the Commission. All comments must be submitted in its financial obligations associated with [FR Doc. 2019–23568 Filed 10–28–19; 8:45 am] English, or if not, accompanied by an entering into non-cleared swaps (‘‘End- BILLING CODE 6351–01–P English translation. Comments will be User Exception’’). posted as received to http:// The Commission adopted www.cftc.gov. You should submit only Commission regulation 39.6 to specify COMMODITY FUTURES TRADING information that you wish to make requirements for electing the End-User COMMISSION available publicly. If you wish the Exception, including the reporting of Sunshine Act Meetings Commission to consider information certain information to a registered swap that you believe is exempt from data repository (‘‘SDR’’) or the TIME AND DATE: 11:00 a.m., Tuesday, disclosure under the Freedom of Commission. Following the publication November 5, 2019. Information Act, a petition for of Commission regulation 39.6, the PLACE: Three Lafayette Centre, 1155 21st confidential treatment of the exempt Commission recodified it as Street NW, Washington, DC, 9th Floor information may be submitted according Commission regulation 50.50 (17 CFR Commission Conference Room. to the procedures established in § 145.9 50.50). The information reported and STATUS: Closed. of the Commission’s regulations.1 The collected under Commission regulation Commission reserves the right, but shall 50.50 is necessary as part of the overall MATTERS TO BE CONSIDERED: have no obligation, to review, pre- package of swap-related information Examinations and enforcement matters. screen, filter, redact, refuse or remove that must generally be submitted by In the event that the time, date, or any or all of your submission from reporting counterparties to SDRs under location of this meeting changes, an http://www.cftc.gov that it may deem to the Dodd-Frank Act. The Commission announcement of the change, along with be inappropriate for publication, such as uses this information to assess and the new time, date, and/or place of the obscene language. All submissions that monitor the market participants electing meeting will be posted on the have been redacted or removed that the End-User Exception to the swap Commission’s website at https:// contain comments on the merits of the clearing requirement in order to prevent www.cftc.gov/. ICR will be retained in the public evasion of the clearing requirement. An CONTACT PERSON FOR MORE INFORMATION: comment file and will be considered as agency may not conduct or sponsor, and Christopher Kirkpatrick, 202–418–5964. required under the Administrative a person is not required to respond to, Authority: 5 U.S.C. 552b. Procedure Act and other applicable a collection of information unless it Dated: October 25, 2019. laws, and may be accessible under the displays a currently valid OMB control Christopher Kirkpatrick, Freedom of Information Act. number. Secretary of the Commission. FOR FURTHER INFORMATION CONTACT: On August 22, 2019, the Commission Melissa D’Arcy, Special Counsel, published in the Federal Register notice [FR Doc. 2019–23688 Filed 10–25–19; 4:15 pm] Division of Clearing and Risk, of the proposed extension of this BILLING CODE 6351–01–P Commodity Futures Trading information collection and provided 60 Commission, Three Lafayette Centre, days for public comment on the 1155 21st Street NW, Washington, DC proposed extension, 84 FR 43795 (‘‘60- DEPARTMENT OF DEFENSE 20581; (202) 418–5086; email: mdarcy@ Day Notice’’). The Commission received cftc.gov, and refer to ‘‘OMB Control No. no comments in response to the 60-Day Office of the Secretary 3038–0085.’’ Notice. Accordingly, the Commission Defense Innovation Board; Notice of SUPPLEMENTARY INFORMATION: continues to believe that the burden Federal Advisory Committee Meeting Title: ‘‘Rule 50.50 End-User estimates published in the 60-Day Notification of Non-Cleared Swap,’’ Notice are appropriate. AGENCY: Under Secretary of Defense for (OMB Control No. 3038–0085). This is Burden Statement: The respondent Research and Engineering, Department a request for an extension and revision burden for this collection is estimated to of Defense (DoD). of a currently approved information be as follows: ACTION: Notice of Federal Advisory collection. Respondents/Affected Entities: Committee meeting. Abstract: The Dodd-Frank Wall Street Eligible entities electing the End-User Reform and Consumer Protection Act Exception under Commission regulation SUMMARY: The DoD is publishing this (‘‘Dodd-Frank Act’’) amended Section 50.50. notice to announce that the following 2(h)(1) of the Commodity Exchange Act Estimated Number of Respondents: Federal Advisory Committee meeting of (‘‘CEA’’) to provide that it shall be 1,600. the Defense Innovation Board (‘‘the unlawful for any person to engage in a Estimated Average Burden Hours per Board’’) will take place. swap unless that person submits such Respondent: 0.58 hours. DATES: Open to the public Thursday, swap for clearing to a derivatives Estimated Total Annual Burden October 31, 2019 from 09:30 a.m. to clearing organization if the swap is Hours: 928 hours.2 12:00 p.m. required to be cleared. However, Section ADDRESSES: The meeting will be held at 2 1,600 × . 58 hour = 928 (the estimated total the Georgetown University, Rafik B. 1 17 CFR 145.9. annual burden hours). Hariri Building, Lohrfink Auditorium,

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3700 O St. NW, Washington, DC 20057. below for additional information on Dated: October 24, 2019. The meeting will be live streamed for how to provide public comments. Morgan E. Park, those unable to physically attend. Meeting Accessibility: Pursuant to Alternate OSD Federal Register Liaison Federal statutes and regulations (the FOR FURTHER INFORMATION CONTACT: Officer, Department of Defense. FACA, the Sunshine Act, and 41 CFR Colleen Laughlin, (571) 372–0933 [FR Doc. 2019–23563 Filed 10–28–19; 8:45 am] 102–3.140 through 102–3.165) and the (Voice), [email protected] BILLING CODE 5001–06–P availability of space, the meeting is (Email) or [email protected]. open to the public from 9:30 a.m. to Mailing address is Defense Innovation 12:00 p.m. Seating is on a first-come Board, ATTN: Designated Federal DEPARTMENT OF DEFENSE basis. Members of the public wishing to Officer, 3030 Defense Pentagon, Room attend the meeting or wanting to receive Office of the Secretary 5E572, Washington, DC 20301–3030. a link to the live stream webcast should Website: http://innovation.defense.gov. [Docket ID DoD–2019–OS–0102] register on the Board website, http:// The most up-to-date changes to the innovation.defense.gov/meetings, no meeting agenda can be found on the Submission for OMB Review; later than October 25, 2019. Members of Comment Request website. the media should RSVP to the Office of SUPPLEMENTARY INFORMATION: This the Assistant to the Secretary of Defense AGENCY: Defense Security Cooperation meeting is being held under the (Public Affairs), at Agency, DoD. provisions of the Federal Advisory [email protected]. ACTION: 30-Day information collection Committee Act (FACA) (5 U.S.C., Special Accommodations: Individuals notice. Appendix), the Government in the requiring special accommodations to Sunshine Act (5 U.S.C. 552b), and 41 access the public meeting should SUMMARY: The Department of Defense CFR 102–3.140 and 102–3.150. Due to contact the Designated Federal Officer, has submitted to OMB for clearance the circumstances beyond the control of the see FOR FURTHER INFORMATION CONTACT following proposal for collection of DoD and the Designated Federal Officer, section for contact information, no later information under the provisions of the the Defense Innovation Board was than October 25, 2019, so that Paperwork Reduction Act. unable to provide public notification appropriate arrangements can be made. DATES: Consideration will be given to all required by 41 CFR 102–3.150(a) Written Statements: Pursuant to comments received by November 29, concerning the meeting on October 31, section 10(a)(3) of the FACA and 41 CFR 2019. 102–3.140, the public or interested 2019, of the Defense Innovation Board. ADDRESSES: Comments and organizations may submit written Accordingly, the Advisory Committee recommendations on the proposed comments to the Board about its Management Officer for the Department information collection should be approved agenda pertaining to this of Defense, pursuant to 41 CFR 102– emailed to Ms. Jasmeet Seehra, DoD meeting or at any time regarding the 3.150(b), waives the 15-calendar day Desk Officer, at oira_submission@ Board’s mission. Individuals submitting notification requirement. omb.eop.gov. Please identify the a written statement must submit their Purpose of the Meeting: The mission proposed information collection by DoD statement to the DFO (see FOR FURTHER of the Board is to examine and provide Desk Officer, Docket ID number, and INFORMATION CONTACT section for contact the Secretary of Defense and the Deputy information). Written comments that do title of the information collection. Secretary of Defense independent not pertain to a scheduled meeting may FOR FURTHER INFORMATION CONTACT: advice and recommendations on be submitted at any time. However, if Angela James, 571–372–7574, or innovative means to address future individual comments pertain to a whs.mc-alex.esd.mbx.dd-dod- challenges in terms of integrated change specific topic being discussed at the [email protected]. to organizational structure and planned meeting, then such comments SUPPLEMENTARY INFORMATION: processes, business and functional must be received in writing not later Title; Associated Form; and OMB concepts, and technology applications. than October 25, 2019. The DFO will Number: The GlobalNET Collection; The Board focuses on (a) technology and compile all written submissions and GlobalNET User Registration Form; capabilities, (b) practices and provide them to Board members for OMB Control Number 0704–0558. operations, and (c) people and culture. consideration. Type of Request: Extension. Agenda: During this public meeting, Oral Presentations: Individuals Number of Respondents: 6,000. the Workforce, Behavior, and Culture wishing to make an oral statement to the Responses per Respondent: 1. Subcommittee will present on Board at the public meeting may be Annual Responses: 6,000. workforce issues, to include a permitted to speak for up to two Average Burden per Response: 10 Workforce Now project and a Campaign minutes. Anyone wishing to speak to minutes. for an AI-Ready Force. The Science and the Board should submit a request by Annual Burden Hours: 1,000. Technology Subcommittee will present email at [email protected] no Needs and Uses: The purpose of the on Fully-Networked Command, Control, later than October 25, 2019 for planning. GlobalNET system is to provide a and Communications, Zero Trust Requests for oral comments should collaborative social networking Architecture, the source code provision include a copy or summary of planned environment/capability where students, of the Software Acquisition and remarks for archival purposes. alumni, faculty, partners, and other Practices report, AI Ethics Principles, Individuals may also be permitted to community members and subject matter and their work plan for the rest of the submit a comment request at the public experts can find relevant and timely calendar year. The Board will also meeting; however, depending on the information about pertinent subject discuss the implementation status of its number of individuals requesting to matter experts and conduct required recommendations in the Department. speak, the schedule may limit training. GlobalNET also collects Members of the public will have an participation. Webcast attendees will be information on students in order to opportunity to provide oral comments provided instructions with the live allow regional center personnel to to the Board regarding its deliberations stream link if they wish to submit manage students while enrolled at and potential recommendations. See comments during the open meeting. regional centers.

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Affected Public: Individuals and and the text of the proposed resolution for which the public hearing is closed households. will be posted on the Commission’s may result in approval of the item (by Frequency: On occasion. website, www.drbc.gov, in a long form of docket or resolution) as proposed, Respondent’s Obligation: Voluntary. this notice at least ten days before the approval with changes, denial, or OMB Desk Officer: Ms. Jasmeet hearing date. deferral. When the Commissioners defer Seehra. Written comments on matters an action, they may announce an You may also submit comments and scheduled for hearing on November 13 recommendations, identified by Docket additional period for written comment will be accepted through 5:00 p.m. on on the item, with or without an ID number and title, by the following November 18. additional hearing date, or they may method: The public is advised to check the • Federal eRulemaking Portal: http:// Commission’s website periodically prior take additional time to consider the www.regulations.gov. Follow the to the hearing date, as items scheduled input they have already received instructions for submitting comments. for hearing may be postponed if without requesting further public input. Instructions: All submissions received additional time is needed to complete Any deferred items will be considered must include the agency name, Docket the Commission’s review, and items for action at a public meeting of the ID number, and title for this Federal may be added up to ten days prior to the Commission on a future date. Register document. The general policy hearing date. In reviewing docket Advance Sign-Up for Oral Comment. for comments and other submissions descriptions, the public is also asked to Individuals who wish to comment on from members of the public is to make be aware that the details of projects may the record during the public hearing on these submissions available for public change during the Commission’s review, November 13 or to address the viewing on the internet at http:// which is ongoing. Commissioners informally during the www.regulations.gov as they are Public Meeting. The public business Open Public Comment portion of the received without change, including any meeting on December 11, 2019 will personal identifiers or contact begin at 10:30 a.m. and will include: meeting on December 11 as time allows, information. Adoption of the Minutes of the are asked to sign-up in advance through DOD Clearance Officer: Ms. Angela Commission’s September 11, 2019 EventBrite. Links to EventBrite for the James. Business Meeting, announcements of Public Hearing and the Business Requests for copies of the information upcoming meetings and events, a report Meeting are available at www.drbc.gov. collection proposal should be sent to on hydrologic conditions, reports by the For assistance, please contact Ms. Paula Ms. James at whs.mc-alex.esd.mbx.dd- Executive Director and the Schmitt of the Commission staff, at [email protected]. Commission’s General Counsel, and [email protected]. Dated: October 21, 2019. consideration of any items for which a Addresses for Written Comment. Aaron T. Siegel, hearing has been completed or is not Written comment on items scheduled Alternate OSD Federal Register Liaison required. The latter may include but are for hearing may be made through the Officer, Department of Defense. not limited to Resolutions for the Commission’s web-based comment Minutes authorizing the Executive [FR Doc. 2019–23273 Filed 10–28–19; 8:45 am] system, a link to which is provided at Director or his designee to: (a) Issue a BILLING CODE 5001–06–P www.drbc.gov. Use of the web-based task order to the Academy of Natural Sciences of Drexel University system ensures that all submissions are (‘‘ANSDU’’) to provide analytical captured in a single location and their DELAWARE RIVER BASIN services for characterization of algal receipt is acknowledged. Exceptions to COMMISSION composition in the Delaware Estuary; the use of this system are available based on need, by writing to the Notice of Public Hearing and Business (b) issue a task order to the ANSDU to provide technical services for the attention of the Commission Secretary, Meeting; November 13 and December DRBC, P.O. Box 7360, 25 Cosey Road, 11, 2019 modernization of Decision Support System (‘‘DSS’’) Tools for the Upper West Trenton, NJ 08628–0360. For Notice is hereby given that the Delaware; and (c) execute an agreement assistance, please contact Paula Schmitt Delaware River Basin Commission will for the preparation of an actuarial at [email protected]. hold a public hearing on Wednesday, evaluation of the Commission’s Other Accommodations for Special Needs. November 13, 2019. A business meeting Post-Employment Benefit (‘‘OPEB’’) Individuals in need of an will be held the following month on obligations, in accordance with accommodation as provided for in the Wednesday, December 11, 2019. The Government Accounting Standards Americans with Disabilities Act who hearing and business meeting are open Board Statement No. 75. wish to attend the meeting or hearing to the public and will take place at the After all scheduled business has been should contact the Commission Washington Crossing Historic Park completed and as time allows, the Secretary directly at 609–883–9500 ext. Visitor Center, 1112 River Road, Business Meeting will be followed by Washington Crossing, Pennsylvania. up to one hour of Open Public 203 or through the Telecommunications Public Hearing. The public hearing on Comment, an opportunity to address the Relay Services (TRS) at 711, to discuss November 13, 2019 will begin at 1:30 Commission on any topic concerning how we can accommodate your needs. p.m. Hearing items will include draft management of the basin’s water Additional Information, Contacts. dockets for withdrawals, discharges, resources outside the context of a duly Additional public records relating to and other projects that could have a noticed, on-the-record public hearing. hearing items may be examined at the substantial effect on the basin’s water There will be no opportunity for Commission’s offices by appointment by resources, as well as a resolution additional public comment for the contacting Denise McHugh, 609–883– establishing the Advisory Committee on record at the December 11 Business 9500, ext. 240. For other questions Climate Change and providing for its Meeting on items for which a hearing concerning hearing items, please contact purpose, membership and initial charge. was completed on November 13 or a David Kovach, Project Review Section The list of projects scheduled for previous date. Commission Manager at 609–883–9500, ext. 264. hearing, including project descriptions, consideration on December 11 of items

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Dated: October 22, 2019. SUPPLEMENTARY INFORMATION: The report templates collection package is Pamela M. Bush, Department of Education (ED), in an extension of the current information Commission Secretary and Assistant General accordance with the Paperwork collection package (OMB #1855–0031). Counsel. Reduction Act of 1995 (PRA) (44 U.S.C. Dated: October 24, 2019. 3506(c)(2)(A)), provides the general [FR Doc. 2019–23592 Filed 10–28–19; 8:45 am] Kate Mullan, BILLING CODE 6360–01–P public and Federal agencies with an opportunity to comment on proposed, PRA Coordinator, Information Collection Clearance Program, Information Management revised, and continuing collections of Branch, Office of the Chief Information information. This helps the Department DEPARTMENT OF EDUCATION Officer. assess the impact of its information [FR Doc. 2019–23574 Filed 10–28–19; 8:45 am] [Docket No. ED–2019–ICCD–0107] collection requirements and minimize the public’s reporting burden. It also BILLING CODE 4000–01–P Agency Information Collection helps the public understand the Activities; Submission to the Office of Department’s information collection DEPARTMENT OF EDUCATION Management and Budget for Review requirements and provide the requested and Approval; Comment Request; data in the desired format. ED is [Docket No. ED–2019–ICCD–0106] Performance Report for Assistance for soliciting comments on the proposed information collection request (ICR) that Agency Information Collection Arts Education Development and Activities; Submission to the Office of Dissemination, Professional is described below. The Department of Education is especially interested in Management and Budget for Review Development for Arts Educators and and Approval; Comment Request; Arts in Education National Programs public comment addressing the following issues: (1) Is this collection 2019–20 National Postsecondary AGENCY: Department of Education (ED), necessary to the proper functions of the Student Aid Study (NPSAS:20) Office of Innovation and Improvement Department; (2) will this information be AGENCY: National Center for Education (OII). processed and used in a timely manner; Statistics (NCES), Department of ACTION: Notice. (3) is the estimate of burden accurate; Education (ED). (4) how might the Department enhance ACTION: Notice. SUMMARY: In accordance with the the quality, utility, and clarity of the Paperwork Reduction Act of 1995, ED is information to be collected; and (5) how SUMMARY: In accordance with the proposing an extension of an existing might the Department minimize the Paperwork Reduction Act of 1995, ED is information collection. burden of this collection on the proposing a revision of an existing DATES: Interested persons are invited to respondents, including through the use information collection. submit comments on or before of information technology. Please note DATES: Interested persons are invited to November 29, 2019. that written comments received in submit comments on or before ADDRESSES: To access and review all the response to this notice will be November 29, 2019. documents related to the information considered public records. ADDRESSES: To access and review all the collection listed in this notice, please Title of Collection: Performance documents related to the information use http://www.regulations.gov by Report for Assistance for Arts Education collection listed in this notice, please searching the Docket ID number ED– Development and Dissemination, use http://www.regulations.gov by 2019–ICCD–0107. Comments submitted Professional Development for Arts searching the Docket ID number ED– in response to this notice should be Educators and Arts in Education 2019–ICCD–0106. Comments submitted submitted electronically through the National Programs. in response to this notice should be OMB Control Number: 1855–0031. Federal eRulemaking Portal at http:// submitted electronically through the Type of Review: An extension of an www.regulations.gov by selecting the Federal eRulemaking Portal at http:// existing information collection. Docket ID number or via postal mail, Respondents/Affected Public: State, www.regulations.gov by selecting the commercial delivery, or hand delivery. Local, and Tribal Governments; Private Docket ID number or via postal mail, If the regulations.gov site is not Sector. commercial delivery, or hand delivery. available to the public for any reason, Total Estimated Number of Annual If the regulations.gov site is not ED will temporarily accept comments at Responses: 88. available to the public for any reason, [email protected]. Please include the Total Estimated Number of Annual ED will temporarily accept comments at docket ID number and the title of the Burden Hours: 3,520. [email protected]. Please include the information collection request when Abstract: This data collection package docket ID number and the title of the requesting documents or submitting consists of three annual performance information collection request when comments. Please note that comments templates forms that include fillable requesting documents or submitting submitted by fax or email and those tables and open-ended questions to comments. Please note that comments submitted after the comment period will allow grantees to submit data as submitted by fax or email and those not be accepted. Written requests for required by the Department of submitted after the comment period will information or comments submitted by Education in an efficient and organized not be accepted. Written requests for postal mail or delivery should be manner under the Assistance for Arts information or comments submitted by addressed to the Director of the Education Development and postal mail or delivery should be Information Collection Clearance Dissemination, Professional addressed to the Director of the Division, U.S. Department of Education, Development for Arts Educators and Information Collection Clearance 550 12th Street SW, PCP, Room 9086, Arts in Education National Programs. Division, U.S. Department of Education, Washington, DC 20202–0023. Data for Government Performance and 550 12th Street SW, PCP, Room 9089, FOR FURTHER INFORMATION CONTACT: For Results Act measures, budget Washington, DC 20202–0023. specific questions related to collection information and data on project-specific FOR FURTHER INFORMATION CONTACT: For activities, please contact Bonnie Carter, performance measures are collected on specific questions related to collection 202–401–3576. the templates. This annual performance activities, please contact Kashka

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Kubzdela, 202–245–7377 or email Postsecondary Students Longitudinal Student Aid Application File’’ (18–11– [email protected]. Study (BPS:20), a study of first-time 01). SUPPLEMENTARY INFORMATION: The beginning postsecondary students that The Federal Student Aid Application Department of Education (ED), in will be conducted three years (BPS:20/ File system of records contains accordance with the Paperwork 22) and six years (BPS:20/25) after information provided by applicants for Reduction Act of 1995 (PRA) (44 U.S.C. beginning their postsecondary title IV of the Higher Education Act of 3506(c)(2)(A)), provides the general education. NPSAS:20 will consist of a 1965, as amended, (HEA) program public and Federal agencies with an nationally-representative sample of assistance, which is collected from the opportunity to comment on proposed, undergraduate and graduate students, Free Application for Federal Student revised, and continuing collections of and a nationally-representative sample Aid (FAFSA). Among other purposes information. This helps the Department of first-time beginning students (FTBs). described in this notice, the information assess the impact of its information Subsets of questions in the NPSAS:20 collected is maintained in order to: collection requirements and minimize student interview will focus on Determine an applicant’s eligibility for the public’s reporting burden. It also describing aspects of the experience of the Federal student financial assistance helps the public understand the beginning students in their first year of programs authorized by title IV of the Department’s information collection postsecondary education, including HEA; make a loan, grant, or scholarship; requirements and provide the requested student debt and education experiences. and verify the identity of the applicant. data in the desired format. ED is This request is to conduct all activities DATES: Submit your comments on or soliciting comments on the proposed related to NPSAS:20, and thus this before November 29, 2019. information collection request (ICR) that submission covers materials and This modified system of records will is described below. The Department of procedures related to: The NPSAS:20 become applicable upon publication in Education is especially interested in student data collection, consisting of the Federal Register on October 29, public comment addressing the abstraction of student data from 2019. Modified routine uses (1)(a), following issues: (1) Is this collection institutions and a student survey; panel (1)(e), (1)(m), (3), (5), (8), (11), (12), (14) necessary to the proper functions of the maintenance activities for a and new routine uses (15) and (16) Department; (2) will this information be NPSAS:2020 follow-up field test (for listed under ‘‘ROUTINE USES OF processed and used in a timely manner; BPS:20/22); and carries over respondent RECORDS MAINTAINED IN THE (3) is the estimate of burden accurate; burden, procedures, and materials SYSTEM, INCLUDING CATEGORIES (4) how might the Department enhance related to the NPSAS:20 institution OF USERS AND PURPOSES OF SUCH the quality, utility, and clarity of the sampling, enrollment list collection, and USES’’ will become applicable on information to be collected; and (5) how matching to administrative data files as November 29, 2019, unless the modified might the Department minimize the approved by OMB in July and system of records notice needs to be burden of this collection on the anticipated change request in September changed as a result of public comment. respondents, including through the use 2019 (OMB #1859–0666 v.23–24). The The Department will publish any of information technology. Please note NPSAS:20 enrollment list collection significant changes resulting from that written comments received in from institutions will take place from public comment. response to this notice will be October 2019 through July 2020, the ADDRESSES: Submit your comments considered public records. student records collection will take through the Federal eRulemaking Portal Title of Collection: 2019–20 National place from February through November or via postal mail, commercial delivery, Postsecondary Student Aid Study 2020, and the student survey data or hand delivery. We will not accept (NPSAS:20). collection will take place from January comments submitted by fax or by email OMB Control Number: 1850–0666. through November 2020. or those submitted after the comment Type of Review: A revision of an Dated: October 24, 2019. period. To ensure that we do not receive existing information collection. Stephanie Valentine, duplicate copies, please submit your Respondents/Affected Public: PRA Coordinator, Information Collection comments only once. In addition, please Individuals or Households. Clearance Program, Information Management include the Docket ID at the top of your Total Estimated Number of Annual Branch, Office of the Chief Information comments. Responses: 111,614. Officer. • Federal eRulemaking Portal: Go to Total Estimated Number of Annual [FR Doc. 2019–23582 Filed 10–28–19; 8:45 am] www.regulations.gov to submit your Burden Hours: 131,801. BILLING CODE 4000–01–P comments electronically. Information Abstract: The 2019–20 National on using Regulations.gov, including Postsecondary Student Aid Study instructions for accessing agency (NPSAS:20) is a nationally DEPARTMENT OF EDUCATION documents, submitting comments, and representative cross-sectional study of viewing the docket, is available on the how students and their families finance [Docket ID ED–2017–FSA–0105] site under the ‘‘help’’ tab. education beyond high school in a given • Postal Mail, Commercial Delivery, Privacy Act of 1974; System of or Hand Delivery: If you mail or deliver academic year. NPSAS is conducted by Records the National Center for Education your comments about this modified Statistics (NCES) and was first AGENCY: Federal Student Aid, system of records, address them to: implemented by NCES during the 1986– Department of Education. Director, Systems Integration Division, Systems Operations and Aid Delivery 87 academic year and has been fielded ACTION: Notice of a modified system of Management Services, Federal Student every 3 to 4 years since. This request is records. to conduct the 11th cycle in the NPSAS Aid, U.S. Department of Education, 830 series during the 2019–20 academic SUMMARY: In accordance with the First Street NE, Room 41F1, Union year. NPSAS:20 will be both nationally- Privacy Act of 1974, as amended Center Plaza (UCP), Washington, DC and state-representative and will serve (Privacy Act), the U.S. Department of 20202–5144. as the base year data collection for the Education (Department) modifies the Privacy Note: The Department’s policy is 2020 cohort of the Beginning system of records entitled ‘‘Federal to make all comments received from

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members of the public available for public Student Information Record (ISIR) The Department is deleting routine viewing in their entirety on the Federal Analysis (IA) Tools functionality and a use (1)(p) because the Department is no eRulemaking Portal at www.regulations.gov. description of the records post- longer disclosing the FAFSA filing Therefore, commenters should be careful to secondary institutions were able to status of a student to a Local include in their comments only information create with the IA Tools, because the IA Educational Agency (LEA), secondary that they wish to make publicly available. Tools have been discontinued. The school where the student is or was Assistance to Individuals With Department is also adding the Person enrolled, or other State, local, or private Disabilities in Reviewing the Authentication System (PAS) to the entity designated by the Secretary, but Rulemaking Record: On request, we will Department systems that provide rather is permitting State agencies to re- provide an appropriate accommodation applicant information to this system of disclose the FAFSA filing status of a or auxiliary aid to an individual with a records. student under specified conditions. disability who needs assistance to The Department is updating the The Department is deleting the former review the comments or other section of the notice entitled ‘‘RECORD routine use (2) entitled ‘‘Disclosure for documents in the public rulemaking SOURCE CATEGORIES’’ to reflect Use by Other Law Enforcement record for this notice. If you want to changes due to the new mobile Agencies’’ because the component of schedule an appointment for this type of application. ‘‘MyStudentAid’’ is a FSA that maintains the system is not a accommodation or auxiliary aid, please mobile application used by students and law enforcement agency and, therefore, contact the person listed under FOR their parents to submit their post- is renumbering the former routine use FURTHER INFORMATION CONTACT. secondary applications for title IV (3) entitled ‘‘Enforcement Disclosure’’ to FOR FURTHER INFORMATION CONTACT: student financial aid grants and loans as the current routine use (2). The Director Lisa DiCarlo, Application part of the FAFSA process. This is an subsequent 12 routine use disclosures Processing Division, Customer alternative to completing the FAFSA are, therefore, renumbered by a Experience Group, Federal Student Aid, application on paper or on the reduction factor of one in the current U.S. Department of Education, 500 West FAFSA.gov website. This application notice. Madison Street, Room 1432/14th Floor, populates the Central Processing System The Department is modifying routine Chicago, IL 60616. Telephone: (312) (CPS) with the applicant’s information. use (3) entitled ‘‘Litigation and 730–1600. The Department is also modifying this Alternative Dispute Resolution (ADR) If you use a telecommunications section to clarify that information in the Disclosure’’ to insert the word ‘‘person’’ device for the deaf (TDD) or text system may also be obtained from other in place of the word ‘‘individual’’ in telephone (TTY), you may call the persons or entities from which data is subsection (c) in order to reduce public Federal Relay Service (FRS), at 1–800– obtained under routine uses set forth in confusion that may have resulted from the Department’s prior use of the word 877–8339. the notice. The Department is substantially ‘‘individual,’’ given that the word SUPPLEMENTARY INFORMATION: The revising the section of the notice ‘‘individual’’ is defined in the Privacy Department is updating the section of entitled ‘‘ROUTINE USES OF RECORDS Act and the Department did not intend the notice entitled ‘‘SECURITY MAINTAINED IN THE SYSTEM, to incorporate the Privacy Act definition CLASSIFICATION’’ by changing the INCLUDING CATEGORIES OF USERS of this word. classification from ‘‘none’’ to AND PURPOSES OF SUCH USES’’ to The Department is modifying routine ‘‘unclassified.’’ The Department is reflect changes in program operations. use (5) entitled ‘‘Contracting updating the section of the notice The Department is modifying routine Disclosure’’ and routine use (11) entitled ‘‘SYSTEM LOCATION’’ by use (1) entitled ‘‘Program Disclosures’’ entitled ‘‘Research Disclosure’’ to revising two locations and adding five to remove the purposes of verifying an remove language that referenced locations. The Department is updating applicant’s spousal information and safeguards required under the Privacy the address of the ‘‘SYSTEM informing an applicant’s spouse of Act because this language was not clear MANAGER(S)’’ to reflect a change in information about the spouse from and also limited the Department to location. The Department is updating routine use disclosures (a) and (m). In making disclosures to contractors acting the section of the notice entitled routine use (1)(a) the change clarifies within the scope of subsection (m) of ‘‘AUTHORITY FOR MAINTENANCE that the Department will not use this the Privacy Act. The Department’s OF THE SYSTEM’’, to include routine use to disclose information from revised language clarifies that additional authority to collect Social this system of records for the purpose of contractors and researchers to whom Security numbers (SSNs) for use in this verifying the identity of the applicant’s disclosures are made under these system. spouse. In routine use (1)(m) the change routine uses are required to agree to The Department is updating the clarifies that the Department will not safeguards to protect the security and section of the notice entitled use this routine use to disclose confidentiality of the records in the ‘‘CATEGORIES OF INDIVIDUALS information from this system of records system and permits the Department to COVERED BY THE SYSTEM’’ to remove to an applicant’s spouse for the purpose disclose records to contractors beyond the reference to secondary school of informing the spouse of information the scope of subsection (m) of the students about whom secondary about the spouse in an application for Privacy Act. The Department also is schools, local educational agencies, and title IV, HEA funds. modifying routine use (5) to clarify that other local and State agencies had The Department is modifying routine an agreement with the contractor will be previously submitted information to the use (1)(e) to remove language indicating reached as part of the contract, rather Department in order for the Department that the Department may disclose than before entering into the contract. to provide these entities with the records to financial institutions The Department is modifying routine students’ FAFSA completion filing participating in the Federal Family use (8) entitled ‘‘Employee Grievance, status. Education Loan (FFEL) Programs in Complaint, or Conduct Disclosure’’ to The Department is updating the order to facilitate assessments of title IV, include records of present or former section of the notice entitled HEA program compliance since new employees and to allow disclosure to ‘‘CATEGORIES OF RECORDS IN THE loans were not originated under FFEL any party to a grievance, complaint, or SYSTEM’’ to delete the Institutional after 2010. action and to the party’s counsel. These

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changes standardize the language in this process of requesting access, contesting, GDIT Image and Data Capture (IDC) routine use with the language used in and notification of records. Center, 1084 South Laurel Road, the Department’s other systems of Finally the Department is adding a London, KY 40744. The IDC scans paper records notices. new section entitled ‘‘HISTORY’’ to the financial aid documents and The Department is updating routine notice to follow the required template in correspondence, key-enters the data, use (12) formerly entitled ‘‘Disclosure to OMB Circular No. A–108. and electronically transmits the data the OMB for Federal Credit Reform Act Accessible Format: Individuals with and related images to the CPS for (CRA) Support’’ to add the disabilities can obtain this document in processing. Congressional Budget Office to the an accessible format (e.g., braille, large GDIT Data Center, 9651 Hornbaker entities which may be provided with print, audiotape, or compact disc) on Road, Manassas, VA 20109. This site access to the Department’s records request to the person listed under FOR hosts some of the hardware and relating to the development of more FURTHER INFORMATION CONTACT. software components of the CPS system. accurate data on historical performance Electronic Access to This Document: GDIT Customer Interaction Center of direct loan and loan guarantee The official version of this document is (CPS/SAIG), 3833 Greenway Drive, programs and to improve estimates of the document published in the Federal Lawrence, KS 55046. CPS/SAIG is the costs of these programs. Register. You may access the official help desk that provides customer Pursuant to the requirements in Office edition of the Federal Register and the service to postsecondary title IV of Management and Budget (OMB) M– Code of Federal Regulations at institutions using the CPS and SAIG 17–12, the Department is modifying www.govinfo.gov. At this site you can websites. routine use (14) entitled ‘‘Disclosure in view this document, as well as all other NGDC, 250 Burlington Drive, the Course of Responding to a Breach of documents of this Department Clarksville, VA 23927. NGDC hosts the Data’’ and adding routine use (15) published in the Federal Register, in infrastructure that supports CPS entitled ‘‘Disclosure in Assisting text or Portable Document Format applications. another Agency in Responding to a (PDF). To use PDF you must have Freedom Graphic Systems (FGS), 780 Breach of Data.’’ Adobe Acrobat Reader, which is McClure Road, Aurora, IL 60502. This The Department is adding routine use available free at the site. facility handles print and mail (16) entitled ‘‘Disclosure of Information You may also access documents of the operations. to State and Federal Agencies’’ to permit Department published in the Federal SYSTEM MANAGER(S): disclosure of records for the purposes of Register by using the article search identifying, preventing, or recouping feature at www.federalregister.gov. Director, Application Processing improper payments, as authorized Specifically, through the advanced Division, Customer Experience Group, pursuant to the Improper Payments search feature at this site, you can limit Federal Student Aid, U.S. Department of Elimination and Recovery Improvement your search to documents published by Education, 500 West Madison Street, Act of 2012, Public Law 112–248, as the Department. Room 1432/14th Floor, Chicago, IL 60616. amended, and to permit the Department Dated: October 24, 2019. to comply with the requirements of 31 Mark A. Brown, AUTHORITY FOR MAINTENANCE OF THE SYSTEM: U.S.C. 3720B. Chief Operating Officer, Federal Student Aid. Title IV of the Higher Education Act The Department is updating the of 1965, as amended (HEA) (20 U.S.C. section of the notice entitled ‘‘POLICIES For the reasons discussed in the preamble, the Chief Operating Officer, 1070 et seq.). The collection of Social AND PRACTICES FOR STORAGE OF Security numbers (SSNs) of users of this RECORDS’’ to more fully address the Federal Student Aid of the U.S. Department of Education (Department) system is also authorized by 31 U.S.C. medium in which the records are stored 7701 and Executive Order 9397, as in this system and to make other publishes a notice of a modified system of records to read as follows: amended by Executive Order 13478 updates, including a change to the (November 18, 2008). record storage location for paper SYSTEM NAME AND NUMBER: applications. PURPOSE(S) OF THE SYSTEM: Federal Student Aid Application File The Department is updating the (18–11–01). The information contained in this section of the notice entitled ‘‘POLICIES system is maintained for the purposes AND PRACTICES FOR RETENTION SECURITY CLASSIFICATION: of: (1) Assisting with the determination, AND DISPOSAL OF RECORDS’’ to Unclassified. correction, processing, tracking, and explain that the applicable Department reporting of program eligibility and records schedule is being amended, SYSTEM LOCATION: benefits for the Federal student financial pending approval by the National Conduent 1084 South Laurel Road, assistance programs authorized by title Archives and Records Administration Building 3, London, KY 40744. This site IV of the HEA; (2) making a loan, grant, (NARA). is the location where paper Free or scholarship; (3) verifying the identity The Department is revising the Application for Federal Student Aid of the applicant, and the parent(s) of a section of the notice entitled (FAFSA) applications and related paper dependent applicant, and the accuracy ‘‘ADMINISTRATIVE, TECHNICAL, documents are stored until sent to the of the information in this system; (4) AND PHYSICAL SAFEGUARDS’’ to Federal Records Center for long-term reporting the results of the need update the computer system safeguards storage and disposal. analysis, Federal Pell Grant eligibility used to protect the system from General Dynamics Information determination, and the results of duly tampering. Technology (GDIT), 2450 Oakdale authorized matching programs between The Department is modifying the Boulevard, Coralville, IA 52241. This the Department and other Federal sections of the notice entitled ‘‘RECORD location hosts CPS/Student Aid internet agencies to applicants, postsecondary ACCESS PROCEDURES’’, Gateway (SAIG) help desk agents and institutions, third-party servicers, State ‘‘CONTESTING RECORD Participation Management staff who agencies designated by the applicant, PROCEDURES’’, and ‘‘NOTIFICATION provide technical assistance to and other Departmental and PROCEDURES’’ to reflect the current postsecondary title IV institutions. investigative components for use in

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operating and evaluating the title IV, birth, email address, number in dependent applicants for title IV, HEA HEA programs and in the imposition of household supported by the parent, and program assistance, on the paper criminal, civil, or administrative income and asset information. For an FAFSA, FAFSA on the Web, FAFSA by sanctions; (5) enforcing the terms and applicant who is married, this system of phone, mobile application, and the conditions of a title IV, HEA loan or records also contains spousal income authorized employees or representatives grant; (6) servicing and collecting a and asset information. of authorized entities as follows: delinquent title IV, HEA loan or grant; The system determines an applicant’s Postsecondary educational institutions, (7) initiating enforcement action against expected family contribution (EFC). The institutional third-party servicers, an individual involved in program EFC is used by IHEs to determine the Federal Family Education Loan (FFEL) fraud, abuse, or noncompliance; (8) student’s eligibility for Federal and Program lenders, FFEL Program locating a debtor; (9) maintaining a institutional program assistance, and by guaranty agencies, Federal loan record of the data supplied by those States to determine the student’s servicers, State grant agencies, other requesting title IV, HEA program eligibility for State grants. The federal agencies, research agencies, and assistance; (10) ensuring compliance Department notifies the applicant of the from other persons or entities from with and enforcing title IV, HEA results of his or her application via the which data is obtained under the programmatic requirements; (11) acting Student Aid Report (SAR). The routine uses set forth below. as a repository and source for Department provides the IHEs identified Postsecondary institutions designated information necessary to fulfill the on the applicant’s FAFSA with the by the applicant or third-party servicers requirements of title IV of the HEA; (12) Institutional Student Information designated by the postsecondary evaluating title IV, HEA program Record (ISIR), which indicates whether institution may correct the records in effectiveness; (13) enabling institutions there are discrepant or insufficient data, this system as a result of documentation of higher education (IHEs) designated by school adjustments, or CPS assumptions provided by the applicant or by a the applicant to review and analyze the that affect processing of the FAFSA. dependent applicant’s parents, such as financial aid data of their applicant Other information in the system Federal income return(s) (Internal population; (14) assisting students with includes, but is not limited to: Revenue Service (IRS) Form 1040, IRS the completion of the application for the Secondary EFC (an EFC calculated from Form 1040A, or IRS Form 1040EZ), Federal student financial assistance the full EFC formula and is printed in Social Security card(s), and Department programs authorized by title IV of the the financial aid administrator’s (FAA) of Homeland Security I–551 Resident HEA; (15) determining the eligibility of Information section of the ISIR), Alien cards. applicants for the award of State dependency status, Federal Pell Grant This system contains information postsecondary education assistance and Eligibility, duplicate SSN (an indicator added during CPS processing and for the award of aid by eligible IHE or that is set to alert ISIR recipients that information received from other other entities designated by the two applications were processed with Department systems, including the Secretary and administering those the same SSN), selection for NSLDS, the COD System, and the SAIG awards; and (16) promoting and verification, Simplified Needs Test Participation Management System. For encouraging application for title IV, (SNT) or Automatic Zero EFC (used for more information about the information HEA program assistance, State extremely low family income), CPS received from these other Department assistance, and aid awarded by the IHE processing comments, reject codes systems, see the Appendix. or other entities designated by the (explanation for applicant’s FAFSA not The results of matching programs Secretary. computing EFC), assumptions made with the following Federal agencies are with regard to the student’s data due to also added to the student’s record CATEGORIES OF INDIVIDUALS COVERED BY THE incomplete or inconsistent FAFSA data, during CPS processing: The Social SYSTEM: FAA adjustments including dependency Security Administration (SSA), the The Federal Student Aid Application status overrides, and CPS record Department of Veterans Affairs (VA), the File contains records on students who processing information (application Selective Service System (SSS), the apply for Federal student financial receipt date, transaction number, Department of Homeland Security assistance programs authorized by title transaction process date, SAR Serial (DHS), the Department of Justice (DOJ), IV of the HEA. This system also Number, Compute Number, Data and the Department of Defense (DoD). contains information on the parent(s) of Release Number (DRN; a four-digit For more information about the a dependent applicant and the spouse of number assigned to each application), information received from these a married applicant. National Student Loan Database System matching programs, see the Appendix. (NSLDS) match results, a bar code, and CATEGORIES OF RECORDS IN THE SYSTEM: Information in this system also may transaction source). be obtained from other persons or This system of records contains Information from other Department entities from which data is obtained information provided by applicants for systems, such as NSLDS, the Common under routine uses set forth below. title IV, HEA program assistance, on the Origination and Disbursement (COD) FAFSA, including, but not limited to, System, and the SAIG Participation ROUTINE USES OF RECORDS MAINTAINED IN THE the applicant’s name, address, SSN, date Management System, is added to this SYSTEM, INCLUDING CATEGORIES OF USES AND PURPOSES OF SUCH USES: of birth, telephone number, driver’s system of records. The Appendix license number, email address, contains a more detailed description of The Department may disclose citizenship status, marital status, legal the data added to this system of records information contained in a record in residence, status as a veteran, as a result of the exchanges of data with this system of records under the routine educational status, and financial data. other Department systems and the uses listed in this system of records This system also contains information Department’s matching programs with without the consent of the individual if provided about the parent(s) of a other Federal agencies. the disclosure is compatible with the dependent applicant, including, but not purposes for which the record was limited to, the parent’s highest level of RECORD SOURCE CATEGORIES: collected. These disclosures may be schooling completed, marital status, Information in this system is obtained made on a case-by-case basis or SSN, last name and first initial, date of from applicants and the parents of pursuant to a matching agreement that

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meets the requirements of the Privacy (g) To assist in assessing the (p) To enable an applicant, should the Act of 1974, as amended (Privacy Act). administration of title IV, HEA program applicant wish to do so, to obtain Section 483(a)(3)(E) of the HEA allows funds by guaranty agencies, financial information from other Federal information collected via the electronic institutions, IHEs, and third-party agencies’ records that will assist the version of the FAFSA to be used only servicers, the Department may disclose applicant in completing the FAFSA for the application, award, and records to Federal and State agencies; online, the Department may disclose administration of aid awarded under (h) To enforce the terms of a loan or information from this system of records title IV of the HEA, by States, by eligible grant or to assist in the collection of to other Federal agencies, such as the institutions, or by such entities as the loan or grant overpayments, the IRS; and Secretary may designate. Department may disclose records to (q) To determine an applicant’s (1) Program Disclosures. guaranty agencies and financial eligibility for the award of State (a) To verify the identity of the institutions participating in the FFEL postsecondary education assistance and applicant and the parent(s) of a programs, IHEs, third-party servicers, for the award of aid by eligible IHEs or dependent applicant; to determine the and Federal, State, and local agencies; other entities designated by the accuracy of the information contained (i) To assist borrowers in repayment, Secretary and to administer those in the record; to support compliance the Department may disclose records to awards, the Department may disclose with title IV, HEA statutory and guaranty agencies and financial information from this system of records regulatory requirements; and to assist institutions participating in the FFEL to State agencies, eligible IHEs, and with the determination, correction, program, IHEs, third-party servicers, other entities designated by the processing, tracking, and reporting of and Federal, State, and local agencies; Secretary. program eligibility and benefits, the (j) To initiate legal action against an (2) Enforcement Disclosure. If Department may disclose records to individual involved in an illegal or information in the system of records, guaranty agencies and financial unauthorized title IV, HEA program either alone or in connection with other institutions participating in the FFEL expenditure or activity, the Department information, indicates a violation or Programs, IHEs, third party servicers, may disclose records to guaranty potential violation of any applicable and Federal and State agencies; agencies and financial institutions statutory, regulatory, or legally binding (b) To provide an applicant’s financial requirement, the Department may aid history, including information about participating in the FFEL programs, IHEs, third-party servicers, and Federal, disclose records to an entity charged the applicant’s title IV, HEA loan with investigating or prosecuting those defaults and title IV, HEA grant program State, and local agencies; (k) To initiate or support a limitation, violations or potential violations. overpayments, the Department may (3) Litigation and Alternative Dispute disclose records to IHEs, guaranty and suspension, or termination action, an emergency action, or a debarment or Resolution (ADR) Disclosure. State agencies, financial institutions (a) Introduction. In the event that one participating in the FFEL Programs, and suspension action, the Department may disclose records to guaranty agencies of the parties listed in sub-paragraphs (i) third party servicers; through (v) is involved in litigation or (c) To facilitate receiving and and financial institutions participating in the FFEL programs, IHEs, third-party ADR, or has an interest in litigation or correcting application data, processing ADR, the Department may disclose Federal Pell Grants and Direct Loans, servicers, and Federal, State, and local agencies; certain records to the parties described and reporting Federal Perkins Loan in paragraphs (b), (c), and (d) of this (l) To investigate complaints, update Program expenditures to the routine use under the conditions files, and correct errors, the Department Department’s processing and reporting specified in those paragraphs: may disclose records to guaranty systems, the Department may disclose (i) The Department or any of its agencies and financial institutions records to IHEs, State agencies, and components; third party servicers; participating in the FFEL programs, (ii) Any Department employee in his (d) To assist loan holders with the IHEs, third-party servicers, and Federal, or her official capacity; collection and servicing of title IV, HEA State, and local agencies; (iii) Any Department employee in his loans, to support pre-claims/ (m) To inform the parent(s) of a or her individual capacity where the supplemental pre-claims assistance, to dependent applicant of information Department of Justice (DOJ) agrees to or assist in locating borrowers, and to about the parent(s) in an application for has been requested to provide or arrange assist in locating students who owe title IV, HEA funds, the Department may for representation of the employee; grant overpayments, the Department disclose records to the parent(s); (iv) Any Department employee in his may disclose records to guaranty (n) To disclose to the parent(s) of a or her individual capacity where the agencies and financial institutions dependent applicant applying for a Department has agreed to represent the participating in the FFEL Programs, PLUS loan (to be used on behalf of a employee; and IHEs, third-party servicers, and Federal, student), to identify the student as the (v) The United States, where the State, and local agencies; correct beneficiary of the PLUS loan Department determines that the (e) To facilitate assessments of title IV, funds, and to allow the processing of the litigation is likely to affect the HEA program compliance, the PLUS loan application and promissory Department or any of its components. Department may disclose records to note, the Department may disclose (b) Disclosure to the DOJ. If the guaranty agencies and IHEs, third-party records to the parent(s) applying for the Department determines that disclosure servicers, and Federal, State, and local PLUS loan; of certain records to the DOJ is relevant agencies; (o) To expedite the student and necessary to litigation or ADR, the (f) To assist in locating holders of application process, the Department Department may disclose those records loan(s), the Department may disclose may disclose information from this as a routine use to the DOJ. records to student borrowers, guaranty system, upon request by a third party, (c) Adjudicative Disclosure. If the agencies and financial institutions provided that the third party provides Department determines that disclosure participating in the FFEL Programs, the Department with the applicant’s first of certain records to an adjudicative IHEs, third-party servicers, and Federal, and last name, SSN, date of birth, and body before which the Department is State, and local agencies; DRN; authorized to appear or to a person or

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entity designated by the Department or employee or other personnel action, the party through a matching program in otherwise empowered to resolve or issuance of a security clearance, the connection with an individual’s mediate disputes is relevant and reporting of an investigation of an application or participation in a title IV, necessary to litigation or ADR, the employee, the letting of a contract, or HEA grant or loan program Department may disclose those records the issuance of a license, grant, or other administered by the Department. as a routine use to the adjudicative benefit, to the extent that the record is Purposes of these disclosures may be to body, person, or entity. relevant and necessary to the receiving determine program eligibility and (d) Disclosure to Parties, Counsel, entity’s decision on the matter. benefits, enforce the conditions and Representatives, and Witnesses. If the (8) Employee Grievance, Complaint, terms of a loan or grant, permit the Department determines that disclosure or Conduct Disclosure. If a record is servicing and collecting of a loan or of certain records is relevant and relevant and necessary to an employee grant, counsel the individual in necessary to litigation or ADR, the grievance, complaint, or disciplinary repayment efforts, investigate possible Department may disclose those records action involving a present or former fraud, verify compliance with program as a routine use to the party, counsel, employee of the Department, the regulations, locate a delinquent or representative, or witness. Department may disclose a record from defaulted debtor, or initiate legal action (4) Freedom of Information Act this system of records in the course of against an individual involved in (FOIA) and Privacy Act Advice investigation, fact-finding, or program fraud or abuse. Disclosure. The Department may adjudication to any party to the (14) Disclosure in the Course of disclose records to the DOJ or to the grievance, complaint, or action; to the Responding to Breach of Data. The Office of Management and Budget party’s counsel or representative; to a Department may disclose records to (OMB) if the Department determines witness; or to a designated fact-finder, appropriate agencies, entities, and that disclosure would help in mediator, or other person designated to persons when (a) the Department determining whether records are resolve issues or decide the matter. suspects or has confirmed that there has required to be disclosed under the FOIA (9) Labor Organization Disclosure. been a breach of the system of records; or the Privacy Act. The Department may disclose records (b) the Department has determined that (5) Contract Disclosure. If the from this system of records to an as a result of the suspected or confirmed Department contracts with an entity to arbitrator to resolve disputes under a breach there is a risk of harm to perform any function that requires negotiated grievance procedure or to individuals, the Department (including disclosing records to the contractor’s officials of labor organizations its information systems, program, and employees, the Department may recognized under 5 U.S.C. chapter 71 operation), the Federal Government, or disclose the records to those employees. when relevant and necessary to their national security; and (c) the disclosure As part of such a contract, the duties of exclusive representation. made to such agencies, entities, and Department shall require the contractor (10) Disclosure to the DOJ. The persons is reasonably necessary to assist to agree to establish and maintain Department may disclose records to the in connection with the Department’s safeguards to protect the security and DOJ to the extent necessary for efforts to respond to the suspected or confidentiality of the records in the obtaining DOJ advice on any matter confirmed breach or to prevent, system. relevant to an audit, inspection, or other minimize, or remedy such harm. (6) Congressional Member Disclosure. inquiry related to the programs covered (15) Disclosure in Assisting another The Department may disclose records to by this system. Agency in Responding to a Breach of a Member of Congress in response to an (11) Research Disclosure. The Data. The Department may disclose inquiry from the Member made at the Department may disclose records to a records from this system to another written request of the individual whose researcher if the Department determines Federal agency or Federal entity, when records are being disclosed. The that the individual or organization to the Department determines that Member’s right to the information is no which the disclosure would be made is information from this system of records greater than the right of the individual qualified to carry out specific research is reasonably necessary to assist the who requested it. related to functions or purposes of this recipient agency or entity in (a) (7) Employment, Benefit, and system of records. The Department may responding to a suspected or confirmed Contracting Disclosure. disclose records from this system of breach or (b) preventing, minimizing, or (a) For Decisions by the Department. records to that researcher solely for the remedying the risk of harm to The Department may disclose a record purpose of carrying out that research individuals, the recipient agency or to a Federal, State, or local agency related to the functions or purposes of entity (including its information maintaining civil, criminal, or other this system of records. The researcher systems, programs, and operations), the relevant enforcement or other pertinent shall be required to agree to establish Federal Government, or national records, or to another public authority and maintain safeguards to protect the security, resulting from a suspected or or professional organization, if security and confidentiality of the confirmed breach. necessary to obtain information relevant disclosed records. (16) Disclosure of Information to State to a Department decision concerning the (12) Disclosure to the OMB and and Federal Agencies. The Department hiring or retention of an employee or Congressional Budget Office (CBO) for may disclose records from this system to other personnel action, the issuance of Federal Credit Reform Act (FCRA) (a) a Federal or State agency, its a security clearance, the letting of a Support. The Department may disclose employees, agents (including contract, or the issuance of a license, records to OMB and CBO as necessary contractors of its agents), or contractors, grant, or other benefit. to fulfill FCRA requirements in or (b) a fiscal or financial agent (b) For Decisions by Other Public accordance with 2 U.S.C. 661b. designated by the U.S. Department of Agencies and Professional (13) Disclosure to Third Parties the Treasury, including employees, Organizations. The Department may through Matching Programs. Any agents, or contractors of such agent, for disclose a record to a Federal, State, information from this system of records, the purpose of identifying, preventing, local, or other public authority or including personal information obtained or recouping improper payments to an professional organization, in connection from other agencies through matching applicant for, or recipient of, Federal with the hiring or retention of an programs, may be disclosed to any third funds.

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DISCLOSURE TO CONSUMER REPORTING physical access to the data housed at of the Department’s Privacy Act AGENCIES: system locations is controlled and regulations at 34 CFR 5b.5, including Disclosures pursuant to 5 U.S.C. monitored by security personnel who proof of identity. 552a(b)(12): The Department may check each individual entering the disclose the following information to a building for his or her employee or EXEMPTIONS PROMULGATED FOR THE SYSTEM: consumer reporting agency regarding a visitor badge. The computer system None. valid overdue claim of the Department: employed by the Department offers a (1) The name, address, taxpayer high degree of resistance to tampering HISTORY: identification number, and other and circumvention with firewalls, The system of records was published information necessary to establish the encryption, and password protection. in the Federal Register at 64 FR 30159– identity of the individual responsible This security system limits data access 30161 (June 4, 1999), corrected by 64 FR for the claim; (2) the amount, status, and to Department and contract staff on a 72384, 72407 (December 27, 1999), history of the claim; and (3) the program ‘‘need-to-know’’ basis, and controls corrected by 65 FR 11294–11295 (March under which the claim arose. The individual users’ ability to access and 2, 2000), corrected by 66 FR 18758 Department may disclose the alter records within the system. All (April 11, 2001), altered by 74 FR information specified in this paragraph interactions by users of the Federal 68802–68808 (December 29, 2009), and under 5 U.S.C. 552a(b)(12) and the Student Aid Application File system are most recently altered by 76 FR 46774– procedures contained in subsection 31 recorded. 46781 (August 3, 2011). U.S.C. 3711(e). A consumer reporting Appendix to 18–11–01 agency to which these disclosures may RECORD ACCESS PROCEDURES: be made is defined at 31 U.S.C. If you wish to gain access to a record ADDITIONAL INFORMATION ABOUT CATEGORIES OF 3701(a)(3). in this system, you must make a Privacy RECORDS IN THE SYSTEM AND RECORD SOURCE Act request through the U.S. CATEGORIES: POLICIES AND PRACTICES FOR STORAGE OF Department of Education, FOIA Office Data provided to the Department as a RECORDS: at https://www2.ed.gov/policy/gen/leg/ result of computer matching with other System records are paper-based and foia/request_privacy.html by completing Federal agencies are added during CPS stored in locked rooms or electronic and the applicable request forms. Requests processing. The Department’s present stored on secured computer systems and by an individual for access to a record computer matches are with the SSA to in the cloud. must meet the requirements of the verify the SSNs of applicants, and Paper applications are stored in Department’s Privacy Act regulations at dependent applicants’ parent(s), and to standard Federal Records Center boxes 34 CFR 5b.5, including proof of identity. in locked storage rooms at the contractor confirm the U.S. citizenship status of facility in London, Kentucky, and then CONTESTING RECORD PROCEDURES: applicants as recorded in SSA records moved to the Federal Records Center at If you wish to contest or change the and date of death (if applicable) of the National Archives and Records content of a record about you in the applicants, and dependent applicants’ Administration (NARA), where the system of records, provide the System parents, pursuant to sections 428B(f)(2), records are stored until disposed. Manager with your name, date of birth, 483(a)(12), and 484(g) and (p) of the Digitized paper applicant records, SSN, and any other identifying HEA (20 U.S.C. 1078–2(f)(2), which include optically imaged information requested by the 1090(a)(12), and 1091(g)and (p)); with documents, are stored on DADS (disks) Department, while processing the the VA to verify the status of applicants in a virtual disk library, which is also request, to distinguish between who claim to be veterans, pursuant to electronic, in the computer facilities individuals with the same name. section 480(c) and (d)(1)(D) of the HEA controlled by the Federal Student Aid Identify the specific items to be (20 U.S.C. 1087vv(c) and (d)(1)(D)); with Data Center. changed, and provide a justification for the SSS to confirm the registration the change. status of male applicants, pursuant to POLICIES AND PRACTICES FOR RETRIEVAL OF section 484(n) of the HEA (20 U.S.C. RECORDS: To contest the content of a FAFSA record for the current processing year 1091(n)); with the DHS to confirm the Records are indexed and retrieved by (which begins on October 1 of the prior immigration status of applicants for the applicant’s SSN, name, and the calendar year and continues for 21 assistance as authorized by section academic year in which the applicant months until June 30 of the following 484(g) of the HEA (20 U.S.C. 1091(g)); applied for title IV, HEA program calendar year), send your request to the with the DOJ to enforce any requirement assistance. FOIA Office listed in the Notification imposed at the discretion of a court, POLICIES AND PRACTICES FOR RETENTION AND Procedures section. pursuant to section 5301 of the Anti- DISPOSAL OF RECORDS: Requests to amend a record must meet Drug Abuse Act of 1988, Public Law Department of Education Records the requirements of the Department’s 100–690, as amended by section 1002(d) Schedule No. 072 (DAA–0441–2013– Privacy Act regulations at 34 CFR 5b.7. of the Crime Control Act of 1990, Public 0002), FSA Application, Origination, Law 101–647 (21 U.S.C. 862), denying NOTIFICATION PROCEDURES: and Disbursement Records (ED 072) is Federal benefits under the programs being amended, pending approval by If you wish to determine whether a established by title IV of the HEA to any NARA. Applicable Department records record exists about you in the system of individual convicted of a State or will not be destroyed until applicable records, you must make a Privacy Act Federal offense for the distribution or NARA-approved amendments to ED 072 request through the U.S. Department of possession of a controlled substance; are in effect. Education, FOIA Office at https:// and with the DoD to identify www2.ed.gov/policy/gen/leg/foia/ dependents of U.S. military personnel ADMINISTRATIVE, TECHNICAL, AND PHYSICAL request_privacy.html by completing the who died in service in Iraq and SAFEGUARDS: applicable request forms. Requests for Afghanistan after September 11, 2001, to All users of the Federal Student Aid notification about whether the system of determine if they are eligible for Application File system will have a records contains information about an increased amounts of title IV, HEA unique user ID with a password. All individual must meet the requirements program assistance, pursuant to sections

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420R and 473(b) of the HEA (20 U.S.C. Dates; Amount and Date of Last ACTION: Notice. 1070h and 1087mm(b)). Disbursement; Guaranty Agency Code; During CPS processing, the School Code; Contact Code; and SUMMARY: In accordance with the Department’s COD System sends Institution Type and Grade Level; and Paperwork Reduction Act of 1995, ED is information to this system for students (3) system flags for Additional proposing an extension of an existing who have received a Federal Pell Grant. Unsubsidized Loan; Capitalized Interest; information collection. The CPS uses this information for Defaulted Loan Change; Discharged DATES: Interested persons are invited to verification analysis and for end-of-year Loan Change; Loan Satisfactory submit comments on or before reporting. These data include, but are Repayment Change; Active Bankruptcy December 30, 2019. not limited to: Verification Selection Change; Overpayments Change; ADDRESSES: To access and review all the and Status, Potential Over-award Project Aggregate Loan Change; Defaulted Loan; documents related to the information (POP) indicator, Institutional Cost of Discharged Loan; Loan Satisfactory collection listed in this notice, please Attendance, Reporting and Attended Repayment; Active Bankruptcy; use http://www.regulations.gov by Campus Pell ID and Enrollment Date, Additional Loans; DL Master searching the Docket ID number ED– and Federal Pell Grant Program Promissory Note; DL PLUS Loan Master 2019–ICCD–0136. Comments submitted information (Scheduled Federal Pell Promissory Note; Subsidized Loan in response to this notice should be Grant Award, Origination Award Limit; and the Combined Loan Limit. submitted electronically through the Amount, Total Accepted Disbursement Federal Perkins Loan data reported by Federal eRulemaking Portal at http:// Amount, Number of Disbursements NSLDS include, but are not limited to: www.regulations.gov by selecting the Accepted, Percentage of Eligibility Used Cumulative and Current Year Docket ID number or via postal mail, At This Attended Campus Institution, Disbursement Amounts; flags for commercial delivery, or hand delivery. and Date of Last Activity from the Perkins Loan Change; Defaulted Loan; If the regulations.gov site is not Origination or Disbursement table). Discharged Loan; Loan Satisfactory available to the public for any reason, The CPS also receives applicant data Repayment; Active Bankruptcy; ED will temporarily accept comments at from the Department’s NSLDS system Additional Loans; and Perkins [email protected]. Please include the each time an application is processed or Overpayment Flag and Contact (School docket ID number and the title of the corrected. This process assesses student or Region). Federal Pell Grant payment information collection request when aid eligibility, updates financial aid data reported include, but are not requesting documents or submitting history, and ensures compliance with limited to: Pell Sequence Number; Pell comments. Please note that comments title IV, HEA regulations. Some of these Attended School Code; Pell Transaction submitted by fax or email and those data appear on the applicant’s SAR and Number; Last Update Date; Scheduled submitted after the comment period will ISIR. Title IV, HEA award information is Amount; Award Amount; Amount Paid not be accepted. Written requests for provided to NSLDS from several to Date; Percent Scheduled Award Used; information or comments submitted by different sources. Federal Perkins Loan Pell Payment EFC; Flags for Pell postal mail or delivery should be data and Federal Supplemental Verification; and Pell Payment Change. addressed to the Director of the Educational Opportunity Grant (FSEOG) Federal Teacher Education Assistance Information Collection Clearance overpayment data are sent from for College and Higher Education Division, U.S. Department of Education, postsecondary institutions or their (TEACH) Grant Program data include, 550 12th Street SW, PCP, Room 9086, third-party servicers; the Department’s but are not limited to: TEACH Grant Washington, DC 20202–0023. COD System provides Federal Pell Grant Overpayment Contact; TEACH Grant FOR FURTHER INFORMATION CONTACT and Direct Loan data; and State and : For Overpayment Flag; TEACH Grant Loan guaranty agencies provide data on FFEL specific questions related to collection loans received from lending institutions Principal Balance; TEACH Grant Total; activities, please contact Beth participating in the FFEL programs. and Teach Grant Change Flag. Iraq and Grebeldinger, 202–377–4018. Financial aid transcript data reported by Afghanistan Service Grants data SUPPLEMENTARY INFORMATION: The NSLDS provides applicants, include, but are not limited to: Total Department of Education (ED), in postsecondary institutions, and third- Award Amount. The Department accordance with the Paperwork party servicers with information about obtains and exchanges information that Reduction Act of 1995 (PRA) (44 U.S.C. the type(s), amount(s), dates, and is included in this system of records 3506(c)(2)(A)), provides the general overpayment status of prior and current from postsecondary institutions, third- public and Federal agencies with an title IV, HEA funds the applicant party servicers, and State agencies. opportunity to comment on proposed, received. FFEL and William D. Ford These eligible entities register with the revised, and continuing collections of Federal Direct Student Loan (DL) data SAIG system to participate in the information. This helps the Department reported by NSLDS include, but are not information exchanges specified for assess the impact of its information limited to: (1) Aggregate Loan Data, such their business processes. collection requirements and minimize as Subsidized, Unsubsidized; Combined [FR Doc. 2019–23581 Filed 10–28–19; 8:45 am] the public’s reporting burden. It also Outstanding Principal Balances; BILLING CODE 4000–01–P helps the public understand the Unallocated Consolidated Outstanding Department’s information collection Principal Balances, Subsidized, requirements and provide the requested Unsubsidized; Combined Pending DEPARTMENT OF EDUCATION data in the desired format. ED is Disbursements, Subsidized, soliciting comments on the proposed [Docket No.: ED–2019–ICCD–0136] Unsubsidized; Combined Totals; and information collection request (ICR) that Unallocated Consolidated Totals; (2) Agency Information Collection is described below. The Department of Detailed Loan Data, such as Loan Activities; Comment Request; Education is especially interested in Sequence Number; Loan Type Code; Application for Borrower Defense to public comment addressing the Loan Change Flag; Loan Program Code; Loan Repayment Form following issues: (1) Is this collection Current Status Code and Date; necessary to the proper functions of the Outstanding Principal Balance and Date; AGENCY: Federal Student Aid (FSA), Department; (2) will this information be Net Loan Amount; Loan Begin and End Department of Education (ED). processed and used in a timely manner;

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(3) is the estimate of burden accurate; DEPARTMENT OF ENERGY for filing a protest, the instant request (4) how might the Department enhance shall be treated as an application for the quality, utility, and clarity of the Federal Energy Regulatory authorization pursuant to section 7 of information to be collected; and (5) how Commission the NGA. might the Department minimize the [Docket No. CP20–6–000] Pursuant to section 157.9 of the burden of this collection on the Commission’s rules, 18 CFR 157.9, respondents, including through the use Southern Natural Gas Company, LLC; within 90 days of this Notice the of information technology. Please note Notice of Request Under Blanket Commission staff will either: Complete that written comments received in Authorization its environmental assessment (EA) and place it into the Commission’s public response to this notice will be Take notice that on October 18, 2019, considered public records. record (eLibrary) for this proceeding or Southern Natural Gas Company, LLC, issue a Notice of Schedule for Title of Collection: Application for (SNG), 569 Brookwood Village, Suite Environmental Review. If a Notice of Borrower Defense to Loan Repayment 749, Birmingham, Alabama 35209, filed Schedule for Environmental Review is Form. in Docket No. CP20–6–000 a prior issued, it will indicate, among other notice request pursuant to sections OMB Control Number: 1845–0146. milestones, the anticipated date for the 157.205, and 157.216 of the Commission staff’s issuance of the EA Type of Review: An extension of an Commission’s regulations under the for this proposal. The filing of the EA existing information collection. Natural Gas Act, and SNG’s blanket in the Commission’s public record for certificate issued in Docket No. CP82– Respondents/Affected Public: this proceeding or the issuance of a 406–000. SNG proposes to abandon in Individuals or Households Notice of Schedule for Environmental place two compressor units at its Rankin Review will serve to notify federal and Total Estimated Number of Annual Compressor Station, located in Rankin state agencies of the timing for the Responses: 96,000. County, Mississippi, all as more fully completion of all necessary reviews, and set forth in the application which is on Total Estimated Number of Annual the subsequent need to complete all file with the Commission and open to Burden Hours: 48,000. federal authorizations within 90 days of public inspection. Abstract: The Department of The filing is available for review at the date of issuance of the Commission Education (the Department) requests the Commission in the Public Reference staff’s EA. approval of this extension without Room or may be viewed on the Persons who wish to comment only change of the Application for Borrower Commission’s website at http:// on the environmental review of this Defense to Loan Repayment form www.ferc.gov using the eLibrary link. project should submit an original and (‘‘Universal Borrower Defense Form’’) to Enter the docket number excluding the two copies of their comments to the ensure that all borrowers have a last three digits in the docket number Secretary of the Commission. consistent platform to petition for relief, field to access the document. For Environmental commenters will be and to facilitate the Department’s assistance, please contact FERC Online placed on the Commission’s receipt of clear and complete Support at FERCOnlineSupport@ environmental mailing list and will be information necessary to process ferc.gov or toll free at (866) 208–3676, or notified of any meetings associated with applications efficiently. This form will TTY, contact (202) 502–8659. the Commission’s environmental review facilitate processing claims from student Any questions concerning this process. Environmental commenters borrowers who believe that they have a application may be directed to T. Brooks will not be required to serve copies of filed documents on all other parties. Borrower Defense claim regarding their Henderson, Director—Rates & However, the non-party commenters, Federal Loans. The form will provide Regulatory, Southern Natural Gas Company, LLC, 569 Brookwood Village, will not receive copies of all documents borrowers with an easily accessible and Suite 749, Birmingham, Alabama 35209, filed by other parties or issued by the clear method to provide the information by telephone at (205) 325–3843, or by Commission and will not have the right necessary for the Department to review fax at (205) 325–3787, or by email at to seek court review of the and process claim applications [email protected]. Commission’s final order. efficiently. A successful Borrower Any person or the Commission’s staff The Commission strongly encourages Defense claim would provide a full or may, within 60 days after issuance of electronic filings of comments, protests partial discharge of a borrower’s loans, the instant notice by the Commission, and interventions in lieu of paper using and if appropriate, reimbursement of file pursuant to Rule 214 of the the eFiling link at http://www.ferc.gov. amounts previously paid. Commission’s Procedural Rules (18 CFR Persons unable to file electronically Dated: October 23, 2019. 385.214) a motion to intervene or notice should submit an original and 3 copies of intervention and pursuant to section Kate Mullan, of the protest or intervention to the 157.205 of the regulations under the Federal Energy Regulatory Commission, PRA Coordinator, Information Collection NGA (18 CFR 157.205), a protest to the Clearance Program, Information Management 888 First Street NE, Washington, DC request. If no protest is filed within the 20426. Branch, Office of the Chief Information time allowed therefore, the proposed Officer. activity shall be deemed to be Dated: October 23, 2019. [FR Doc. 2019–23532 Filed 10–28–19; 8:45 am] authorized effective the day after the Kimberly D. Bose, BILLING CODE 4000–01–P time allowed for filing a protest. If a Secretary. protest is filed and not withdrawn [FR Doc. 2019–23587 Filed 10–28–19; 8:45 am] within 30 days after the allowed time BILLING CODE 6717–01–P

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DEPARTMENT OF ENERGY docs-filing/efiling.asp. Commenters can determined that the issues that need to submit brief comments up to 6,000 be addressed in its EA have been Federal Energy Regulatory characters, without prior registration, adequately identified during the pre- Commission using the eComment system at http:// filing period, and no new issues are [Project No. 14862–001] www.ferc.gov/docs-filing/ likely to be identified through ecomment.asp. You must include your additional scoping. The EA will Douglas Leen; Notice of Application name and contact information at the end consider assessing the potential effects Accepted for Filing, Intent To Waive of your comments. For assistance, of project operation on geology and Scoping, Soliciting Motions To please contact FERC Online Support at soils, aquatic, terrestrial, threatened and Intervene and Protests, Ready for [email protected], (866) endangered species, recreation, and Environmental Analysis, and Soliciting 208–3676 (toll free), or (202) 502–8659 cultural and historic resources. Comments, Terms and Conditions, (TTY). In lieu of electronic filing, please o. A copy of the application is Recommendations, Prescriptions send a paper copy to: Secretary, Federal available for review at the Commission Energy Regulatory Commission, 888 in the Public Reference Room or may be Take notice that the following First Street NE, Washington, DC 20426. viewed on the Commission’s website at hydroelectric application has been filed The first page of any filing should http://www.ferc.gov using the eLibrary with the Commission and is available include docket number P–14862–001. link. Enter the docket number excluding for public inspection. The Commission’s Rules of Practice the last three digits in the docket a. Type of Application: Exemption require all intervenors filing documents number field to access the document. from Licensing. with the Commission to serve a copy of For assistance, contact FERC Online b. Project No.: 14862–001. that document on each person on the Support. A copy is also available for c. Date filed: November 28, 2018. official service list for the project. inspection and reproduction at the d. Applicant: Douglas Leen. Further, if an intervenor files comments address in item h above. e. Name of Project: Kupreanof or documents with the Commission You may register online at http:// Microhydro Project. relating to the merits of an issue that www.ferc.gov/docs-filing/ f. Location: On an unnamed stream, in may affect the responsibilities of a esubscription.asp to be notified via Petersburg Borough, Alaska. The project particular resource agency, they must email of new filings and issuances would occupy 0.651 acre of federal land also serve a copy of the document on related to this or other pending projects. managed by the U.S. Forest Service. that resource agency. For assistance, contact FERC Online g. Filed Pursuant to: Public Utilities l. This application has been accepted Support. Regulatory Policies Act of 1978, 16 for filing and is now ready for p. Any qualified applicant desiring to U.S.C. 2705, 2708. environmental analysis. file a competing application must h. Applicant Contact: Douglas Leen, m. Project Description: The proposed submit to the Commission, on or before P.O. Box 341, Petersburg, Alaska 99833, project would consist of: (1) Two the specified intervention deadline date, (907) 518–0335; [email protected]. surface water intakes: (a) A 3-foot-long, a competing development application, i. FERC Contact: John Matkowski, 1.5-foot-wide, 1.5-foot-deep steel intake or a notice of intent to file such an (202) 502–8576, or john.matkowski@ box located in the east branch of the application. Submission of a timely ferc.gov. unnamed stream; and, (b) a 2.5-foot- notice of intent allows an interested j. On September 26, 2019, the long, 1-foot-wide, 1.25-foot-deep, steel person to file the competing applicant informed the Commission of intake box located in the west branch of development application no later than its intent to convert its application for the unnamed stream; (2) a 6-inch 120 days after the specified intervention minor license filed on November 28, diameter, 458-foot-long, plastic deadline date. Applications for 2018 to an application for exemption penstock connecting the east branch preliminary permits will not be from licensing and included additional intake to the powerhouse; (3) a 3-inch- accepted in response to this notice. information necessary to augment the diameter, 30-foot-long, plastic penstock A notice of intent must specify the license application and convert it to an connecting the west branch intake to the exact name, business address, and application for exemption from penstock leading from the east branch telephone number of the prospective licensing. Pursuant to 18 CFR 4.31(c)(2) intake; (5) a powerhouse containing 1.5- applicant, and must include an (2019), an applicant for an exemption is kilowatt (kW) turbine/generator unit; (6) unequivocal statement of intent to required to have sufficient rights in any a tailrace that discharges into the submit a development application. A non-federal land required for the project mainstem unnamed stream; (7) a 420- notice of intent must be served on the prior to filing its application. On foot-long, partially buried transmission applicant(s) named in this public notice. October 8, 2019, the applicant provided line; and (8) appurtenant facilities. The Anyone may submit comments, a documentation that it had the property project is estimated to generate an protest, or a motion to intervene in rights for the non-federal lands average of 550 megawatt-hours accordance with the requirements of necessary to develop the project. annually. Rules of Practice and Procedure, 18 CFR k. Deadline for filing motions to n. Due to the small size and location 385.210, .211, and .214. In determining intervene and protests, comments, terms of this project, the applicant’s close the appropriate action to take, the and conditions, recommendations, and coordination with federal and state Commission will consider all protests or prescriptions: 60 days from the issuance agencies during preparation of the other comments filed, but only those date of this notice; reply comments are application, and studies completed who file a motion to intervene in due 105 days from the issuance date of during pre-filing consultation, we accordance with the Commission’s this notice. intend to waive scoping and expedite Rules may become a party to the The Commission strongly encourages the licensing process. Based on a review proceeding. Any comments, protests, or electronic filing. Please file motions to of the application and resource agency motions to intervene must be received intervene, protests, comments, terms consultation letters including comments on or before the specified comment date and conditions, recommendations, and filed to date, Commission staff intends for the particular application. prescriptions using the Commission’s to prepare a single environmental All filings must (1) bear in all capital eFiling system at http://www.ferc.gov/ assessment (EA). Commission staff letters the title PROTEST, MOTION TO

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INTERVENE, NOTICE OF INTENT TO submitting the same document to the Confidential Business Information (CBI) FILE COMPETING APPLICATION, TSCA Science Advisory Committee on or other information whose disclosure is COMPETING APPLICATION, Chemicals (SACC) for peer review and restricted by statute. COMMENTS, REPLY COMMENTS, is announcing that there will be an in- • Mail: OPPT Docket, Environmental RECOMMENDATIONS, TERMS AND person public meeting of the TSCA Protection Agency Docket Center (EPA/ CONDITIONS, or PRESCRIPTIONS; (2) SACC to consider and review the draft DC), (28221T), 1200 Pennsylvania Ave. set forth in the heading the name of the risk evaluation. Preceding the in-person NW, Washington, DC 20460–0001. applicant and the project number of the meeting, there will be a preparatory • Hand Delivery: To make special application to which the filing virtual public meeting for the panel to arrangements for hand delivery or responds; (3) furnish the name, address, consider the scope and clarity of the delivery of boxed information, please and telephone number of the person draft charge questions for the peer follow the instructions at http:// protesting or intervening; and (4) review. www.epa.gov/dockets/contacts.html. Additional instructions on commenting otherwise comply with the requirements DATES: of 18 CFR 385.2001 through 385.2005. Virtual Meeting: The preparatory or visiting the docket, along with more All comments, recommendations, terms virtual meeting will be held on information about dockets generally, is and conditions or prescriptions must set November 12, 2019, from 1:00 p.m. to available at http://www.epa.gov/ forth their evidentiary basis and approximately 4:00 p.m. (EST). You dockets. Requests to present oral comments otherwise comply with the requirements must register online on or before and requests for special of 18 CFR 4.34(b). Agencies may obtain November 12, 2019 to receive the accommodations. Submit requests for copies of the application directly from webcast meeting link and audio special accommodations, or requests to the applicant. A copy of any protest or teleconference information. Submit your present oral comments during the motion to intervene must be served written comments for the preparatory virtual meeting and/or the in-person upon each representative of the virtual meeting, or request time to peer review meeting, to the Designated applicant specified in the particular present oral comments, on or before Federal Official (DFO) listed under FOR application. A copy of all other filings noon, November 8, 2019. in reference to this application must be In-Person Meeting: The in-person FURTHER INFORMATION CONTACT by the accompanied by proof of service on all meeting will be held on December 3–4, deadline identified in the DATES section. persons listed in the service list 2019, from 9:00 a.m. to approximately FOR FURTHER INFORMATION CONTACT: prepared by the Commission in this 5:30 p.m. (EST) each day. Any TSCA SACC meeting: Dr. Todd proceeding, in accordance with 18 CFR comments submitted on the draft risk Peterson, DFO, Office of Science 4.34(b) and 385.2010. evaluation on or before November 26, Coordination and Policy (7201M), Dated: October 23, 2019. 2019 will be provided to the SACC to Environmental Protection Agency, 1200 Kimberly D. Bose, allow them time to review and consider Pennsylvania Ave. NW, Washington, DC 20460–0001; telephone number: (202) Secretary. them before the peer review meeting. Comments received after November 26, 564–6428; email address: [FR Doc. 2019–23588 Filed 10–28–19; 8:45 am] [email protected]. BILLING CODE 6717–01–P 2019 and prior to the end of the oral public comment period during the Draft Risk Evaluation: Dr. Stan meeting will be considered by EPA and Barone, Office of Pollution Prevention available to the SACC for their and Toxics (7403M), Environmental ENVIRONMENTAL PROTECTION Protection Agency, 1200 Pennsylvania AGENCY consideration. Please submit requests to present oral comments during the in- Ave. NW, Washington, DC 20460–0001; [EPA–HQ–OPPT–2019–0437; FRL–9999–69] person meeting on or before December telephone number: (202) 564–1169; 3, 2019 to be included on the meeting email address: [email protected]. Methylene Chloride (MC); Draft Toxic agenda. SUPPLEMENTARY INFORMATION: Substances Control Act (TSCA) Risk Comments: All comments on the draft I. General Information Evaluation and TSCA Science risk evaluation must be received on or Advisory Committee on Chemicals before December 30, 2019. A. Does this action apply to me? (SACC) Meeting; Notice of Availability, For additional instructions, see Unit This action is directed to the public Public Meeting, and Request for III. of the SUPPLEMENTARY INFORMATION. in general. This action may be of Comment ADDRESSES: Virtual Meeting: Please visit interest to persons who are or may be AGENCY: Environmental Protection http://www.epa.gov/tsca-peer-review to required to conduct testing and those Agency (EPA). register. interested in risk evaluations of ACTION: Notice. In-Person Meeting: The in-person chemical substances under TSCA, 15 meeting will be held at the Hyatt U.S.C. 2601 et seq. Since other entities SUMMARY: EPA is announcing the Regency Crystal City, 2799 Jefferson may also be interested in these draft risk availability of and soliciting public Davis Highway, Arlington, VA. evaluations, the EPA has not attempted comment on the draft Toxic Substances Additional meeting information can be to describe all the specific entities that Control Act (TSCA) risk evaluation of found on the TSCA SACC website at may be affected by this action. Methylene Chloride (MC). The purpose http://www.epa.gov/tsca-peer-review. of the risk evaluation process under Comments: Submit your comments, B. What is EPA’s authority for taking TSCA is to determine, upon issuance of identified by docket identification (ID) this action? a final risk evaluation, whether a number EPA–HQ–OPPT–2019–0437 by TSCA section 6, 15 U.S.C. 2605, chemical substance presents an one of the following methods: requires EPA to conduct risk unreasonable risk of injury to health or • Federal eRulemaking Portal: http:// evaluations to ‘‘determine whether a the environment under the conditions of www.regulations.gov. Follow the online chemical substance presents an use, including an unreasonable risk to a instructions for submitting comments. unreasonable risk of injury to health or relevant potentially exposed or Do not submit electronically any the environment, without consideration susceptible subpopulation. EPA is also information you consider to be of costs or other nonrisk factors,

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including an unreasonable risk to a draft risk evaluation of the chemical public docket. Information so marked potentially exposed or susceptible substances identified in Unit II. EPA is will not be disclosed except in subpopulation identified as relevant to seeking public comment on all aspects accordance with procedures set forth in the risk evaluation by the of the draft risk evaluation, including 40 CFR part 2. Administrator, under the conditions of any preliminary conclusions, findings, 2. Tips for preparing your comments. use.’’ 15 U.S.C. 2605(b)(4)(A). TSCA and determinations, and the submission When preparing and submitting your sections 6(b)(4)(A) through (H) of any additional information that might comments, see the commenting tips at enumerate the deadlines and minimum be relevant to the draft risk evaluation, http://www.epa.gov/dockets/ requirements applicable to this process, including the science underlying the comments.html. including provisions that provide draft risk evaluation and the outcome of instruction on chemical substances that the systematic review associated with II. Draft TSCA Risk Evaluation must undergo evaluation, the minimum the chemical substances. This 60-day A. What is EPA’s risk evaluation process components of a TSCA risk evaluation, comment period on the draft risk for existing chemicals under TSCA? and the timelines for public comment evaluation satisfies TSCA section The risk evaluation process is the and completion of the risk evaluation. 6(b)(4)(H), which requires EPA to second step in EPA’s existing chemical TSCA also requires that EPA operate in ‘‘provide no less than 30 days public process under TSCA, following a manner that is consistent with the best notice and an opportunity for comment prioritization and before risk available science, make decisions based on a draft risk evaluation prior to management. As these chemicals are on the weight of the scientific evidence publishing a final risk evaluation,’’ and part of the first ten chemical substances and consider reasonably available 40 CFR 702.49(a), which states that undergoing risk evaluation, these information. 15 U.S.C. 2625(h), (i), and ‘‘EPA will publish a draft risk chemical substances were not required (k). evaluation in the Federal Register, open The statute identifies the minimum a docket to facilitate receipt of public to go through prioritization (81 FR components for all chemical substance comment, and provide no less than a 60- 91927, December 19, 2016) (FRL–9956– risk evaluations. For each risk day comment period, during which time 47). The purpose of risk evaluation is to evaluation, EPA must publish a the public may submit comment on determine whether a chemical document that outlines the scope of the EPA’s draft risk evaluation.’’ In addition substance presents an unreasonable risk risk evaluation to be conducted, which to any new comments on the draft risk of injury to health or the environment, includes the hazards, exposures, evaluation, the public should resubmit under the conditions of use, including conditions of use, and the potentially or clearly identify any previously filed an unreasonable risk to a relevant exposed or susceptible subpopulations comments, modified as appropriate, that potentially exposed or susceptible that EPA expects to consider. 15 U.S.C. are relevant to the draft risk evaluation subpopulation. As part of this process, 2605(b)(4)(D). The statute further and that the submitter feels have not EPA must evaluate both hazard and provides that each risk evaluation must been addressed. EPA does not intend to exposure, not consider costs or other also: (1) Integrate and assess available respond to comments submitted prior to nonrisk factors, use reasonably available information on hazards and exposures the release of the draft risk evaluation information and approaches in a for the conditions of use of the chemical unless they are clearly identified in manner that is consistent with the substance, including information on comments on the draft risk evaluation. requirements in TSCA for the use of the specific risks of injury to health or the EPA is also submitting the draft risk best available science, and ensure environment and information on evaluation and associated supporting decisions are based on the weight-of- relevant potentially exposed or documents to the TSCA SACC for peer scientific-evidence. susceptible subpopulations; (2) describe review and announcing the meeting for The specific risk evaluation process whether aggregate or sentinel exposures the peer review panel. All comments that EPA has established by rule to were considered and the basis for that submitted to the dockets on the draft implement the statutory process is set consideration; (3) take into account, risk evaluation by the deadline out in 40 CFR part 702 and summarized where relevant, the likely duration, identified in the DATES section will be on EPA’s website at http:// intensity, frequency, and number of provided for consideration to the TSCA www.epa.gov/assessing-and-managing- exposures under the conditions of use; SACC peer review panel, which will chemicals-under-tsca/risk-evaluations- and (4) describe the weight of the have the opportunity to consider the existing-chemicals-under-tsca. As scientific evidence for the identified comments during its discussions. explained in the preamble to EPA’s final hazards and exposures. 15 U.S.C. rule on procedures for risk evaluation D. What should I consider as I prepare (82 FR 33726, July 20, 2017) (FRL– 2605(b)(4)(F)(i)–(ii) and (iv)–(v). Each my comments for EPA? risk evaluation must not consider costs 9964–38), the specific regulatory or other nonrisk factors. 15 U.S.C. 1. Submitting CBI. Do not submit this process set out in 40 CFR part 702, 2605(b)(4)(F)(iii). information to EPA through subpart B will be followed for the first The statute requires that the risk regulations.gov or email. Clearly mark ten chemical substances undergoing risk evaluation process last no longer than the part or all of the information that evaluation to the maximum extent three years, with a possible additional you claim to be CBI. For CBI practicable. information in a disk or CD–ROM that six-month extension. 15 U.S.C. B. What is MC? 2605(b)(4)(G). The statute also requires you mail to EPA, mark the outside of the that the EPA allow for no less than a 30- disk or CD–ROM as CBI and then Methylene chloride (MC), also known day public comment period on the draft identify electronically within the disk or as dichloromethane and DCM, is a risk evaluation, prior to publishing a CD–ROM the specific information that volatile chemical used as a solvent in a final risk evaluation. 15 U.S.C. is claimed CBI. In addition to one wide range of industrial, commercial 2605(b)(4)(H). complete version of the comment that and consumer applications. The includes information claimed as CBI, a primary uses for methylene chloride are C. What action is EPA taking? copy of the comment that does not for paint removal, adhesives, EPA is announcing the availability of contain the information claimed as CBI pharmaceutical manufacturing, metal and seeking public comment on the must be submitted for inclusion in the cleaning, aerosol solvents, chemical

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processing and flexible polyurethane After the public meeting, the TSCA online or with the DFO listed under FOR foam manufacturing. Information from SACC will prepare meeting minutes FURTHER INFORMATION CONTACT on or the 2016 Chemical Data Reporting (CDR) summarizing its recommendations to before noon on the date set in the DATES for MC indicates the reported EPA. The meeting minutes will be section. Oral comments before the TSCA production volume is more than 260 posted on the TSCA SACC website and SACC during the preparatory virtual million lbs/year (manufacture and in the relevant docket. meeting are limited to approximately 5 import). C. What do I need to know about the minutes due to the time constraints of Information about the problem this virtual meeting. formulation and scope phases of the TSCA SACC public meetings? TSCA risk evaluation for this chemical The focus of the public meeting is to 2. In-person meeting. You may is available at http://www.epa.gov/ peer review EPA’s draft risk evaluation. participate in the in-person public assessing-and-managing-chemicals- After the peer review process, EPA will meeting by attending and by providing under-tsca/risk-evaluation-methylene- consider peer reviewer comments and written or oral comments. The in-person chloride-0. recommendations, and public meeting may also be webcast. Please comments, in finalizing the risk refer to the TSCA SACC website at III. TSCA SACC evaluation. The draft risk evaluation http://www.epa.gov/tsca-peer-review for A. What is the purpose of the TSCA contains: Discussion of chemistry and information on how to access the SACC? physical-chemical properties; webcast. Please note that for the in- The TSCA SACC was established by characterization of conditions of use; person meeting, the webcast is a EPA in 2016 and operates in accordance environmental fate and transport supplementary public process provided with the Federal Advisory Committee assessment; human health exposures; only for convenience. If difficulties arise Act (FACA), 5 U.S.C. Appendix 2 et seq. environmental hazard assessment; risk resulting in webcasting outages, the in- The TSCA SACC provides expert characterization; risk determination; person meeting will continue as independent scientific advice and and a detailed description of the planned. systematic review process developed by consultation to the EPA on the scientific i. Seating at the meeting. Seating at and technical aspects of risk the Office of Pollution Prevention and the meeting will be open and on a first- assessments, methodologies, and Toxics to search, screen, and evaluate come basis. pollution prevention measures and scientific literature for use in the risk approaches for chemicals regulated evaluation process. ii. Written comments. To provide the under TSCA. D. How do I participate in the public TSCA SACC the time necessary to The TSCA SACC is comprised of meetings? consider and review your comments, experts in: Toxicology; human health written comments must be submitted by and environmental risk assessment; You may participate in the public the date set in the DATES section and meetings by following the instructions exposure assessment; and related using the instructions in the ADDRESSES in this unit. To ensure proper receipt by sciences (e.g., synthetic biology, section and this unit. Comments EPA, it is imperative that you identify pharmacology, biotechnology, received after the date set in the DATES the corresponding docket ID number in nanotechnology, biochemistry, section and prior to the end of the oral the subject line on the first page of your biostatistics, physiologically based public comment period during the pharmacokinetic modelling (PBPK) request. 1. Preparatory virtual meeting. The meeting will still be provided to the modeling, computational toxicology, TSCA SACC for their consideration. epidemiology, environmental fate, and preparatory virtual meeting will be environmental engineering and conducted via webcast and telephone. iii. Oral comments. To be included on sustainability). When needed, the You may participate in the preparatory the meeting agenda, submit your request committee will be assisted in their virtual meeting by registering to join the to make brief oral comments at the in- reviews by ad hoc participants with webcast. You may also submit written person meeting to the DFO listed under specific expertise in the topics under comments or request time for oral FOR FURTHER INFORMATION CONTACT on or consideration. comments. before the date set in the DATES section. i. Registration. You must register to The request should identify the name of B. How can I access the TSCA SACC participate in the preparatory virtual documents? the individual making the presentation, meeting. To participate by listening or the organization (if any) the individual EPA’s background documents, related making a comment during this meeting, will represent, and any requirements for supporting materials, and draft charge please go to the EPA website to register: audiovisual equipment. Oral comments questions to the TSCA SACC are http://www.epa.gov/tsca-peer-review. before TSCA SACC during the in-person Registration online will be confirmed by available on the TSCA SACC website meeting are limited to approximately 5 and in the docket established for the an email that will include the webcast minutes unless prior arrangements have specific chemical substances. In meeting link and audio teleconference been made. In addition, each speaker addition, EPA will provide additional information. should bring 30 copies of the comments background documents (e.g., TSCA ii. Written comments. Written and presentation for distribution by the SACC members participating in this comments for consideration during the meeting and the meeting agenda) as the preparatory virtual meeting should be DFO to the TSCA SACC at the meeting. materials become available. You may submitted, using the instructions in Authority: 15 U.S.C. 2601 et seq. obtain electronic copies of these ADDRESSES and this unit, on or before Dated: October 23, 2019. documents, and certain other related the date set in the DATES section. documents that might be available, in iii. Oral comments. Requests to make Andrew R. Wheeler, the docket at http://www.regulations.gov brief oral comments to the TSCA SACC Administrator. and the TSCA SACC website at http:// during the preparatory virtual meeting [FR Doc. 2019–23614 Filed 10–24–19; 4:15 pm] www.epa.gov/tsca-peer-review. should be submitted when registering BILLING CODE 6560–50–P

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FEDERAL DEPOSIT INSURANCE ADDRESSES: Interested parties are Office of Information and Regulatory CORPORATION invited to submit written comments to Affairs, Office of Management and the FDIC by any of the following Budget, New Executive Office Building, Agency Information Collection methods: Washington, DC 20503. Activities: Proposed Collection • https://www.FDIC.gov/regulations/ FOR FURTHER INFORMATION CONTACT: Renewal; Comment Request (OMB No. laws/federal. Manny Cabeza, Regulatory Counsel, 3064–0029; –0030; –0070; –0104; • Email: [email protected]. Include 202–898–3767, [email protected], MB– –0204) the name and number of the collection 3128, Federal Deposit Insurance AGENCY: Federal Deposit Insurance in the subject line of the message. Corporation, 550 17th Street NW, Corporation (FDIC). • Mail: Manny Cabeza (202–898– Washington, DC 20429. 3767), Regulatory Counsel, MB–3128, ACTION: Notice and request for comment. SUPPLEMENTARY INFORMATION: Federal Deposit Insurance Corporation, SUMMARY: The FDIC, as part of its 550 17th Street NW, Washington, DC Proposal to renew the following obligations under the Paperwork 20429. currently approved collections of information: Reduction Act of 1995 (PRA), invites the • Hand Delivery: Comments may be general public and other Federal hand-delivered to the guard station at 1. Title: Notification of Performance of agencies to take this opportunity to the rear of the 17th Street building Bank Services. comment on the renewal of the existing (located on F Street), on business days OMB Number: 3064–0029. information collections described below between 7:00 a.m. and 5:00 p.m. Form Number: 6120/06. (OMB No. 3064–0029; –0030; –0070; All comments should refer to the Affected Public: Insured state –0104; –0204). relevant OMB control number. A copy nonmember banks and state savings DATES: Comments must be submitted on of the comments may also be submitted associations. or before December 30, 2019. to the OMB desk officer for the FDIC: Burden Estimate: SUMMARY OF ANNUAL BURDEN

Estimated Estimated Type of Obligation to Estimated Estimated time per annual Information collection description burden respond number of frequency of response burden respondents responses (minutes) (hours)

Notification of Performance of Bank Services (FDIC Form 6120/06) ..... Reporting ...... Mandatory ..... 634 On Occasion 30 318

Total Estimated Annual Burden: 318. requirement. There is no change in the 2. Title: Securities of State General Description of Collection: method or substance of the collection. Nonmember Banks and State Savings Insured state nonmember banks are The estimated number of respondents is Associations. required to notify the FDIC, under estimated to increase based on the OMB Number: 3064–0030. section 7 of the Bank Service Company response rate observed over the last Affected Public: Insured state Act (12 U.S.C. 1867), of the relationship three years. The estimated time per nonmember banks and state savings with a bank service company. The Form response and the frequency of response associations. FDIC 6120/06, Notification of is expected to remain the same. Type of Burden: Reporting. Performance of Bank Services, may be Obligation to Respond: Mandatory. used by banks to satisfy the notification Burden Estimate:

SUMMARY OF BURDEN

Estimated Estimated Estimated time Frequency of number of Estimated number of to respond response responses annual burden responses (hours) per year (hours)

Form 3—Initial Statement of Beneficial Ownership ...... 58 1 On Occasion .. 1 58 Form 4—Statement of Changes in Beneficial Ownership .. 297 0.5 On Occasion .. 4 594 Form 5—Annual Statement of Beneficial Ownership ...... 69 1 Annual ...... 1 69 Form 8–A ...... 2 3 On Occasion .. 2 12 Form 8–C ...... 2 2 On Occasion .. 1 4 Form 8–K ...... 21 2 On Occasion .. 4 168 Form 10 ...... 2 215 On Occasion .. 1 430 Form 10–C ...... 1 1 On Occasion .. 1 1 Form10–K ...... 21 140 Annual ...... 1 2,940 Form 10–Q ...... 21 100 Quarterly ...... 3 6,300 Form 12b–25 ...... 6 3 On Occasion .. 1 18 Form 15 ...... 2 1 On Occasion .. 1 2 Form 25 ...... 2 1 On Occasion .. 1 2 Schedule 13D ...... 2 3 On Occasion .. 1 6 Schedule 13E–3 ...... 2 3 On Occasion .. 1 6 Schedule 13G ...... 2 3 On Occasion .. 1 6 Schedule 14A ...... 21 40 Annual ...... 1 840 Schedule 14C ...... 2 40 On Occasion .. 1 80 Schedule 14D–1 (Schedule TO) ...... 2 5 On Occasion .. 1 10

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SUMMARY OF BURDEN—Continued

Estimated Estimated Estimated time Frequency of number of Estimated number of to respond response responses annual burden responses (hours) per year (hours)

Total Estimated Annual Burden ...... 11,546

General Description of Collection: section 12(b) or (g) of the Exchange Act most reporting companies. It includes Section 12(i) of the Exchange Act grants of any class of securities of any issuer unaudited financial statements and authority to the Federal banking which is required to file reports provides a continuing overview of major agencies to administer and enforce pursuant to section 13 or 15(d) of that changes in the company’s financial sections 10A(m), 12, 13, 14(a), 14(c), Act or pursuant to an order exempting position during the year, as compared to 14(d), 14(f), and 16 of the Exchange Act the exchange on which the issuer has the prior corresponding period. The and sections 302, 303, 304, 306, 401(b), securities listed from registration as a report must be filed for each of the first 404, 406, and 407 of the Sarbanes-Oxley national securities exchange. Form 8–C three fiscal quarters of the company’s Act of 2002. Pursuant to section 12(i), has been replaced by Form 8–A. Form fiscal year and is due within 40 or 45 the FDIC has the authority, including 8–A is described at 17 CFR 249.208a. days of the close of the quarter, rulemaking authority, to administer and There is no actual ‘‘Form 8–A’’ as filers depending on the size of the reporting enforce these enumerated provisions as must produce a customized narrative company. The description of Form 10– may be necessary with respect to state document in compliance with the Q is at 17 CFR 249.308a. There is no nonmember banks and state savings requirements in accordance with the actual ‘‘Form 10–Q’’ as filers must associations over which it has been filer’s particular circumstances. produce a customized narrative designated the appropriate Federal Form 8–K: Current Report. This is the document in compliance with the banking agency. Section 12(i) generally current report that is used to report the requirements in accordance with the requires the FDIC to issue regulations occurrence of any material events or filer’s particular circumstances. substantially similar to those issued by corporate changes that are of importance Form 12b–25: Notification of Late the Securities and Exchange to investors or security holders and have Filing. This notification extends the Commission (SEC) regulations to carry not been reported previously by the reporting deadlines for filing quarterly out these responsibilities. Thus, part registrant. It provides more current and annual reports for qualifying 335 of the FDIC regulations incorporates information on certain specified events companies. There is no FDIC Form 12b– by cross-reference the SEC rules and than would Forms 10–Q and 10–K. The 25. The form is described at 17 CFR regulations regarding the disclosure and form description is at 17 CFR 249.308. 249.322. filing requirements of registered There is no actual ‘‘Form 8–K’’ as filers Form 15: Certification and Notice of securities of state nonmember banks and must produce a customized narrative Termination of Registration. This form state savings associations. document in compliance with the is filed by each issuer to certify that the This information collection includes requirements in accordance with the number of holders of record of a class the following: filer’s particular circumstances. of security registered under section Beneficial Ownership Forms: FDIC Forms 10 and 10–C: Forms for 12(g) of the Exchange Act is reduced to Forms 3, 4, and 5 (FDIC Form Numbers Registration of Securities. Form 10 is the a specified level in order to terminate 6800/03, 6800/04, and 6800/05). general reporting form for registration of the registration of the class of security. Pursuant to section 16 of the Exchange securities pursuant to section 12(b) or For a bank, the number of holders of Act, every director, officer, and owner of (g) of the Exchange Act of classes of record of a class of registered security more than ten percent of a class of securities of issuers for which no other must be reduced to less than 1,200 equity securities registered with the reporting form is prescribed. It requires persons. For a savings association, the FDIC under section 12 of the Exchange certain business and financial number of record holders of a class of Act must file with the FDIC a statement information about the issuer. Form 10– registered security must be reduced to of ownership regarding such securities. C has been replaced by Form 10. Form (1) less than 300 persons or (2) less than The initial filing is on Form 3 and 10 is described at 17 CFR 249.210. 500 persons and the total assets of the changes are reported on Form 4. The There is no actual ‘‘Form 10’’ as filers issuer have not exceeded $10 million on Annual Statement of beneficial must produce a customized narrative the last day of each of the issuer’s most ownership of securities is on Form 5. document in compliance with the recent three fiscal years. In general, The forms contain information on the requirements in accordance with the registration terminates 90 days after the reporting person’s relationship to the filer’s particular circumstances. filing of the certification. There is no company and on purchases and sales of Form 10–K: Annual Report. This FDIC Form 15. This form is described at such equity securities. 12 CFR 335.601 annual report is used by issuers 17 CFR 249.323. through 336.613 of the FDIC’s registered under the Exchange Act to Schedule 13D: Certain Beneficial regulations, which cross-reference 17 provide information described in Ownership Changes. This Schedule CFR 240.16a of the SEC’s regulations, Regulation S–K, 17 CFR 229. The form discloses beneficial ownership of provide the FDIC form requirements for is described at 17 CFR 249.310. There is certain registered equity securities. Any FDIC Forms 3, 4, and 5 in lieu of SEC no actual ‘‘Form 10–K’’ as filers must person or group of persons who acquire Forms 3, 4, and 5, which are described produce a customized narrative a beneficial ownership of more than 5 at 17 CFR 249.103 (Form 3), 249.104 document in compliance with the percent of a class of registered equity (Form 4), and 249.105 (Form 5). requirements in accordance with the securities of certain issuers must file a Forms 8–A and 8–C for Registration of filer’s particular circumstances. Schedule 13D reporting such Certain Classes of Securities. Form 8–A Form 10–Q: Quarterly Reports. The acquisition together with certain other is used for registration pursuant to Form 10–Q is a report filed quarterly by information within ten days after such

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acquisition. Moreover, any material the issuer. There is no FDIC form for Schadule14C. This schedule is changes in the facts set forth in the Schadule13G. This schedule is described at 17 CFR 240.14c–101. Schedule generally precipitates a duty described at 17 CFR 240.13d–102. Schedule 14D–1: Tender Offer. This to promptly file an amendment on Schedule 14A: Proxy Statements. schedule is also known as Schedule TO. Schedule 13D. The SEC’s rules define State law governs the circumstances Any person, other than the issuer itself, the term beneficial owner to be any under which shareholders are entitled making a tender offer for certain equity person who directly or indirectly shares to vote. When a shareholder vote is securities registered pursuant to section voting power or investment power (the required and any person solicits proxies 12 of the Exchange Act is required to power to sell the security). There is no with respect to securities registered file this schedule if acceptance of the FDIC form for Schadule13D. This under section 12 of the Exchange Act, offer would cause that person to own schedule is described at 17 CFR that person generally is required to over 5 percent of that class of the 240.13d–101. furnish a proxy statement containing the securities. This schedule must be filed Schedule 13E–3: Going Private information specified by Schedule 14A. and sent to various parties, such as the Transactions by Certain Issuers or Their The proxy statement is intended to issuer and any competing bidders. In Affiliates. This schedule must be filed if provide shareholders with the proxy addition, the SEC’s Regulation 14D sets an issuer engages in a solicitation information necessary to enable them to forth certain requirements that must be subject to Regulation 14A or a vote in an informed manner on matters complied with in connection with a distribution subject to Regulation 14C, intended to be acted upon at tender offer. This schedule is described in connection with a going private shareholders’ meetings, whether the at 17 CFR 240.14d–100. There is no merger with its affiliate. An affiliate and traditional annual meeting or a special actual form for Schedule 14D–1 as filers an issuer may be required to complete, meeting. Typically, a shareholder is also must produce a customized narrative file, and disseminate a Schedule 13E–3, provided with a proxy card to authorize document in compliance with the which directs that each person filing the designated persons to vote his or her requirements in accordance with the schedule state whether it reasonably securities on the shareholder’s behalf in filer’s particular circumstances. believes that the Rule 13e–3 transaction the event the holder does not vote in is fair or unfair to unaffiliated security There is no change in the method or holders. There is no FDIC form for person at the meeting. Copies of substance of the collection. The Schedule13E–3. This schedule is preliminary and definitive (final) proxy estimated number of respondents, as described at 17 CFR 240.13e–100. statements and proxy cards are filed well as the estimated time per response Schedule 13G: Certain Acquisitions of with the FDIC. There is no FDIC form and the frequency of response, is Stock. Certain acquisitions of stock that for Schadule14A. The description of expected to remain the same. are over than 5 percent of an issuer must this schedule is at 17 CFR 240.14a–101. 3. Title: Application for a Bank to be reported to the public. Schedule 13G Schedule 14C: Information Required Establish a Branch or Move its Main is a much abbreviated version of in Information Statements. An Office or a Branch. Schedule 13D that is only available for information statement prepared in OMB Number: 3064–0070. use by a limited category of persons accordance with the requirements of the Affected Public: Insured state (such as banks, broker/dealers, and SEC’s Regulation 14C is required nonmember banks and state savings insurance companies) and even then whenever matters are submitted for associations. only when the securities were acquired shareholder action at an annual or in the ordinary course of business and special meeting when there is no proxy Type of Burden: Reporting. not with the purpose or effect of solicitation under the SEC’s Regulation Obligation to Respond: Mandatory. changing or influencing the control of 14A. There is no FDIC form for Burden Estimate: SUMMARY OF ANNUAL BURDEN

Estimated Estimated Estimated time Estimated Information collection description Type of Obligation to number of frequency of per annual burden respond respondents response response burden (hours) (hours)

Application to Establish a Branch, Move Main Office or Move Branch .. Reporting ...... Mandatory ..... 718 On Occasion 5 3,590

Total Estimated Annual Burden: capital structure; (c) its future earnings the number of responses recorded over 3,590. prospects; (d) the general character and the last three years. The estimated time General Description of Collection: fitness of its management; (e) the risk per response and the frequency of Section 18(d) of the Federal Deposit presented by the depository institution response, is expected to remain the Insurance Act (12 U.S.C. 1828(d)) (FDI to the Deposit Insurance Fund; (f) the same. Act) provides that no FDIC insured state convenience and needs of the 4. Title: Activities and Investments of nonmember bank or state savings community to be served; and (g) Savings Associations. association shall establish and operate whether its corporate powers are any new domestic branch or move its consistent with the purposes of the FDI OMB Number: 3064–0104. main office or any such branch from one Act. FDIC regulations found at 12 CFR Affected Public: Insured state savings location to another without the prior 303, subpart C, specify the steps that associations. written consent of the FDIC. In granting respondents must take to comply with or withholding consent to the applicant, the statutory mandate. There is no Type of Burden: Reporting. FDIC considers: (a) The financial history change in the method or substance of Obligation to Respond: Mandatory. and condition of the depository the collection. The estimated number of Burden Estimate: institution; (b) the adequacy of its respondents has been revised based on

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SUMMARY OF ANNUAL BURDEN

Estimated Estimated Estimated time Estimated Information collection description Type of Obligation to number of frequency of per annual burden respond respondents response response burden (hours) (hours)

Application for Exemption—§ 28 and Subsidiary Notice—§ 18(m) ...... Reporting ...... Mandatory ..... 18 On Occasion 12 216

Total Estimated Annual Burden ...... 216

General Description of Collection: grant exceptions under certain response and the frequency of response, Section 28 of the Federal Deposit circumstances. is expected to remain the same. Insurance Act limits the powers of state 12 CFR part 362 details the activities 5. Title: Margin and Capital savings associations to acquire or retain that state savings associations and/or Requirements for Covered Swap equity investments of a type or amount their subsidiaries may engage in, under Entities. not permitted for a federal savings certain criteria and conditions, and OMB Number: 3064–0204. association. Section 28 also prohibits identifies the information that banks Affected Public: Any FDIC-insured insured state savings associations and must furnish to the FDIC in order to state-chartered bank that is not a their subsidiaries from engaging as obtain the FDIC’s approval or non- member of the Federal Reserve System principal in any activity of a type or in objection. or FDIC-insured state-chartered savings an amount that is not permitted for a There is no change in the method or association that is registered as a swap federal savings association or its substance of the collection. The dealer, major swap participant, security- subsidiaries. Section 28 charges the estimated number of respondents has based swap dealer, or major security- FDIC with the responsibility of been revised upward based on the based swap participant. enforcing the restrictions and filing number of responses recorded over the Obligation to Respond: Mandatory. requirements, and permits the FDIC to last three years. The estimated time per Burden Estimate:

Estimated Estimated Estimated Regulation Type of burden Number of annual average hours annual burden respondents frequency per response hours

§ 349.1(d)(1), (d)(2) Meeting criteria for exemption ...... Reporting ...... 1 1 1,000 1,000 § 349.1(h) ...... Disclosure ...... 1 1 10 10 § 349.2 Definition of ‘‘Eligible Master Netting Agree- Recordkeeping 1 1 5 5 ment,’’ paragraphs (4)(i) and (ii). § 349.8(g) Documentation. § 349.10 Documentation of Margin Matters. 40+50++20+20++10++250+§ 349.5(c)(2)(i) Required Recordkeeping 1 1 4 4 Margin. § 349.7(c) Custody Agreement ...... Recordkeeping 1 1 100 100 § 349.8(c) and (d) Initial Margin Model ...... Reporting ...... 1 1 240 240 § 349.8(e) Periodic Review ...... Recordkeeping 1 1 40 40 § 349.8(f) Control, Oversight, and Validation Mecha- nisms. § 349.8(f)(3) Initial Margin Modeling Report ...... Reporting ...... 1 1 50 50 § 349.8(h) Escalation Procedures ...... Recordkeeping 1 1 20 20 § 349.9(e) Requests for Determinations ...... Reporting ...... 1 3 10 30 § 349.11(b)(1) Posting Initial Margin ...... Recordkeeping 1 250 1 250

Totals ...... 1,749

General Description of Collection: The These capital and margin requirements organization or a registered clearing Dodd-Frank Wall Street Reform and apply to swaps that are not cleared by agency (non-cleared swaps).2 The Consumer Protection Act (Dodd-Frank a registered derivatives clearing agencies published regulations that Act) required the Office of the require swap dealers and security-based Comptroller of the Currency, the Board 731 and 764 of the Dodd-Frank Act added a new swap dealers under the agencies’ of Governors of the Federal Reserve section 4s to the Commodity Exchange Act of 1936, respective jurisdictions to exchange as amended, and a new section, section 15F, to the System, the FDIC, the Farm Credit Securities Exchange Act of 1934, as amended, margin with their counterparties for Administration, and Federal Home respectively, which require registration with the swaps that are not centrally cleared Finance Agency (each, an agency, and Commodity Futures Trading Commission (CFTC) of (Swap Margin Rule or Rule). First issued swap dealers and major swap participants and the in 2015, the Swap Margin Rule includes collectively, the agencies) to jointly U.S. Securities and Exchange Commission (SEC) of adopt rules that establish capital and security-based swap dealers and major security- margin requirements for swap entities based swap participants (each a swap entity and, 2 A ‘‘swap’’ is defined in section 721 of the Dodd- that are prudentially regulated by one of collectively, swap entities). Section 1a(39) of the Frank Act to include, among other things, an 1 Commodity Exchange Act of 1936, as amended, interest rate swap, commodity swap, equity swap, the agencies (covered swap entities). defines the term ‘‘prudential regulator’’ for and credit default swap, and a security-based swap purposes of the margin requirements applicable to is defined in section 761 of the Dodd-Frank Act to 1 Dodd-Frank Wall Street Reform and Consumer swap dealers, major swap participants, security- include a swap based on a single security or loan Protection Act, Public Law 111–203, 124 Stat. 1376 based swap dealers and major security-based swap or on a narrow-based security index. See 7 U.S.C. (2010). See 7 U.S.C. 6s; 15 U.S.C. 78o–10. Sections participants. See 7 U.S.C. 1a(39). 1a(47); 15 U.S.C. 78c(a)(68).

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a phased compliance schedule from demonstrated upon request to the and demonstrate the reasonableness of 2016 to 2020 and generally applies only satisfaction of the agency that it has its process for modeling and measuring to a non-cleared swap entered into on or made appropriate efforts to collect or hedging benefits, demonstrate to the after the applicable compliance date. A post the required margin. Section 349.7 satisfaction of the relevant Agency that non-cleared swap entered into prior to generally requires a covered swap entity the omission of any risk factor from the an entity’s applicable compliance date to ensure that any initial margin calculation of its initial margin is is ‘‘grandfathered’’ by this regulatory collateral that it collects or posts is held appropriate, demonstrate to the provision and is generally not subject to at a third-party custodian. Section satisfaction of the relevant Agency that the margin requirements in the Swap 349.7(c) requires the custodian to act incorporation of any proxy or Margin Rule (legacy swap) unless it is pursuant to a custody agreement that: approximation used to capture the risks amended or novated on or after the (1) Prohibits the custodian from of the covered swap entity’s non-cleared applicable compliance date. The FDIC’s rehypothecating, repledging, reusing, or swaps or noncleared security-based Swap Margin Rule can be found at 12 otherwise transferring (through swaps is appropriate, periodically CFR part 349. securities lending, securities borrowing, review and, as necessary, revise the data The reporting requirements found in repurchase agreement, reverse used to calibrate the initial margin 12 CFR 349.1(d) refer to statutory repurchase agreement or other means) model to ensure that the data provisions that set forth conditions for the collateral held by the custodian, incorporate an appropriate period of an exemption from clearing. Section except that cash collateral may be held significant financial stress 349.1(d)(1) provides an exemption for in a general deposit account with the (§§ 349.8(d)(5), 349.8(d)(10), non-cleared swaps if one of the custodian if the funds in the account are 349.8(d)(11), 349.8(d)(12), and counterparties to the swap is not a used to purchase an asset held in 349.8(d)(13)). Also, if the validation financial entity, is using swaps to hedge compliance with § 349.7, and such process reveals any material problems or mitigate commercial risk, and notifies purchase takes place within a time with the initial margin model, the the Commodity Futures Trading period reasonably necessary to covered swap entity must promptly Commission of how it generally meets consummate such purchase after the notify the Agency of the problems, its financial obligations associated with cash collateral is posted as initial describe to the Agency any remedial entering into non-cleared swaps. margin and (2) is a legal, valid, binding, actions being taken, and adjust the Section 349.1(d)(2) provides an and enforceable agreement under the initial margin model to ensure an exemption for security-based swaps if laws of all relevant jurisdictions, appropriately conservative amount of the counterparty notifies the Securities including in the event of bankruptcy, required initial margin is being and Exchange Commission (SEC) of how insolvency, or a similar proceeding. A calculated (§ 349.8(f)(3)). Section 349.8 it generally meets its financial custody agreement may permit the also establishes requirements for the obligations associated with entering into posting party to substitute or direct any ongoing review and documentation of non-cleared security-based swaps. reinvestment of posted collateral held initial margin models. These standards Section 349.2 defines terms used in part by the custodian under certain include: (1) A requirement that a 349, including the definition of ‘‘eligible conditions. With respect to collateral covered swap entity review its initial master netting agreement,’’ which collected by a covered swap entity margin model annually (§ 349.8(e)); (2) provides that a covered swap entity that pursuant to § 349.3(a) or posted by a a requirement that the covered swap relies on the agreement for purpose of covered swap entity pursuant to entity validate its initial margin model calculating the required margin must: § 349.3(b), the agreement must require at the outset and on an ongoing basis, (1) Conduct sufficient legal review of the posting party to substitute only describe to the relevant Agency any the agreement to conclude with a well- funds or other property that would remedial actions being taken, and report founded basis that the agreement meets qualify as eligible collateral under internal audit findings regarding the specified criteria; and (2) establish and § 349.6 and for which the amount net of effectiveness of the initial margin model maintain written procedures for applicable discounts described in to the covered swap entity’s board of monitoring relevant changes in law and Appendix B would be sufficient to meet directors or a committee thereof to ensure that the agreement continues the requirements of § 349.3 and direct (§§ 349.8(f)(2), 349.8(f)(3), and to satisfy the requirements of this reinvestment of funds only in assets that 349.8(f)(4)); (3) a requirement that the section. The term ‘‘eligible master would qualify as eligible collateral covered swap entity adequately netting agreement’’ is used elsewhere in under § 349.6. Section 349.8 establishes document all material aspects of its part 349 to specify instances in which standards for the use of initial margin initial margin model (§ 349.8(g)); and (4) a covered swap entity may: (1) Calculate models. These standards include: (1) A that the covered swap entity must variation margin on an aggregate basis requirement that the covered swap adequately document internal across multiple non-cleared swaps and entity receive prior approval from the authorization procedures, including security-based swaps and (2) calculate relevant Agency based on escalation procedures, that require initial margin requirements under an demonstration that the initial margin review and approval of any change to initial margin model for one or more model meets specific requirements the initial margin calculation under the swaps and security-based swaps. (§§ 349.8(c)(1) and 349.8(c)(2)); (2) a initial margin model, demonstrable Section 349.5(c)(2)(i) specifies that a requirement that a covered swap entity analysis that any basis for any such covered swap entity shall not be notify the relevant Agency in writing 60 change is consistent with the deemed to have violated its obligation to days before extending use of the model requirements of this section, and collect or post margin from or to a to additional product types, making independent review of such counterparty if the covered swap entity certain changes to the initial margin demonstrable analysis and approval has made the necessary efforts to collect model, or making material changes to (§ 349.8(h)). Section 349.9 addresses the or post the required margin, including modeling assumptions (§ 349.8(c)(3)); treatment of cross-border transactions the timely initiation and continued and (3) a variety of quantitative and, in certain limited situations, will pursuit of formal dispute resolution requirements, including requirements permit a covered swap entity to comply mechanisms, or has otherwise that the covered swap entity validate with a foreign regulatory framework for

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noncleared swaps (as a substitute for entity to post initial margin under CFR 225.41) to acquire shares of a bank compliance with the prudential § 349.3(b) does not apply with respect to or bank holding company. The factors regulators’ rule) if the prudential any noncleared swap or non-cleared that are considered in acting on the regulators jointly determine that the security based swap with a counterparty notices are set forth in paragraph 7 of foreign regulatory framework is that is an affiliate. A covered swap the Act (12 U.S.C. 1817(j)(7)). comparable to the requirements in the entity shall calculate the amount of The applications listed below, as well prudential regulators’ rule. Section initial margin that would be required to as other related filings required by the 349.9(e) allows a covered swap entity to be posted to an affiliate that is a Board, if any, are available for request that the prudential regulators financial end user with material swaps immediate inspection at the Federal make a substituted compliance exposure pursuant to § 349.3(b) and Reserve Bank indicated. The determination and must provide the provide documentation of such amount applications will also be available for reasons therefore and other required to each affiliate on a daily basis. inspection at the offices of the Board of supporting documentation. A request There is no change in the method or Governors. Interested persons may for a substituted compliance substance of the collection. The FDIC express their views in writing on the determination must include: (1) A currently does not supervise any standards enumerated in paragraph 7 of description of the scope and objectives institutions that are subject to this the Act. of the foreign regulatory framework for information collection but is reporting non-cleared swaps and non-cleared Comments regarding each of these one respondent as a placeholder to applications must be received at the security-based swaps; (2) the specific preserve the burden estimates. For provisions of the foreign regulatory Federal Reserve Bank indicated or the clarity, the burden presentation has offices of the Board of Governors, Ann framework for non-cleared swaps and been changed to correspond to the security-based swaps (scope of E. Misback, Secretary of the Board, 20th burden presentation made by the other and Constitution Avenue NW, transactions covered; determination of agencies in their respective information the amount of initial and variation Washington, DC 20551–0001, not later collections. There is no change in the than November 7, 2019. margin required; timing of margin total estimated annual burden. requirements; documentation A. Federal Reserve Bank of Dallas requirements; forms of eligible Request for Comment (Robert L. Triplett III, Senior Vice collateral; segregation and Comments are invited on: (a) Whether President) 2200 North Pearl Street, rehypothecation requirements; and the collection of information is Dallas, Texas 75201–2272: approval process and standards for necessary for the proper performance of 1. Ferne S. Frosch, Huntsville, Texas; models); (3) the supervisory compliance the FDIC’s functions, including whether to retain voting shares of First National program and enforcement authority the information has practical utility; (b) Bancshares of Huntsville, Inc. and exercised by a foreign financial the accuracy of the estimates of the thereby indirectly retain voting shares of regulatory authority or authorities in burden of the information collection, First National Bank of Huntsville, both such system to support its oversight of including the validity of the of Huntsville, Texas. In addition, The the application of the non-cleared swap methodology and assumptions used; (c) Wilbourne T. Robinson Family Trust and security-based swap regulatory ways to enhance the quality, utility, and No. 1, Huntsville, Texas, Ferne S. framework; and (4) any other clarity of the information to be Frosch, Huntsville, Texas, Frances R. descriptions and documentation that the collected; and (d) ways to minimize the Snipes, Houston, Texas, and Florine R. prudential regulators determine are burden of the collection of information Klussmann, Katy, Texas, as co-trustees; appropriate. A covered swap entity may on respondents, including through the The Wilbourne T. Robinson Family make a request under this section only use of automated collection techniques Trust No. 2, Ferne S. Frosch, Frances R. if directly supervised by the authorities or other forms of information Snipes, and Florine R. Klussmann, as administering the foreign regulatory technology. All comments will become co-trustees; The J. Philip Gibbs Trust framework for non-cleared swaps and a matter of public record. No. 2, Huntsville, Texas, Ferne S. non-cleared security-based swaps. Frosch, trustee; Wayne B. Frosch; Federal Deposit Insurance Corporation. Section 349.10 requires a covered swap Walter M. Woodward, Jr.; and Clyde entity to execute trading documentation Dated at Washington, DC, on October 23, Michael Williams, all of Huntsville, with each counterparty that is either a 2019. Texas; Janet Smyth and Mary K. swap entity or financial end user Annmarie H. Boyd, Basquin, both of New York, New York; regarding credit support arrangements Assistant Executive Secretary. Virginia S. Low, London, N1; Elizabeth that: (1) Provides the contractual right to [FR Doc. 2019–23527 Filed 10–28–19; 8:45 am] H. Hawley, Dallas, Texas; and a minor collect and post initial margin and BILLING CODE 6714–01–P child; to be approved as members acting variation margin in such amounts, in in concert with the Smyth Gibbs Aker such form, and under such Group to retain voting shares of First circumstances as are required and (2) FEDERAL RESERVE SYSTEM National Bancshares of Huntsville, Inc. specifies the methods, procedures, and thereby retain voting shares of First rules, and inputs for determining the Change in Bank Control Notices; National Bank of Huntsville. value of each non-cleared swap or Acquisitions of Shares of a Bank or Board of Governors of the Federal Reserve noncleared security-based swap for Bank Holding Company purposes of calculating variation margin System, October 23, 2019. requirements and the procedures for The notificants listed below have Yao-Chin Chao, resolving any disputes concerning applied under the Change in Bank Assistant Secretary of the Board. valuation. Section 349.11(b)(1) provides Control Act (Act) (12 U.S.C. 1817(j)) and [FR Doc. 2019–23531 Filed 10–28–19; 8:45 am] that the requirement for a covered swap § 225.41 of the Board’s Regulation Y (12 BILLING CODE 6210–01–P

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DEPARTMENT OF HEALTH AND 7500 Security Boulevard, Baltimore, Ambulance Transport (RSNAT) Prior HUMAN SERVICES Maryland 21244–1850. Authorization Process and To obtain copies of a supporting Requirements for a Potential National Centers for Medicare & Medicaid statement and any related forms for the Model; Use: CMS is pursuing approval Services proposed collection(s) summarized in to potentially expand the RSNAT Prior this notice, you may make your request [Document Identifier: CMS–10708] Authorization Model nationally if the using one of following: Secretary determines that the expansion Agency Information Collection 1. Access CMS’ website address at criteria are met. The potential national Activities: Proposed Collection; https://www.cms.gov/Regulations-and- model would follow the same design as Comment Request Guidance/Legislation/ the current RSNAT Prior Authorization PaperworkReductionActof1995/PRA- Model, as described in the September AGENCY: Centers for Medicare & Listing.html. 16, 2019, Federal Register (84 FR Medicaid Services, HHS. 2. Email your request, including your 48620) and may be implemented in ACTION: Notice. address, phone number, OMB number, multiple phases. If such a national and CMS document identifier, to model moves forward, the information SUMMARY: The Centers for Medicare & [email protected]. Medicaid Services (CMS) is announcing that would be required under this 3. Call the Reports Clearance Office at collection would be used to determine an opportunity for the public to (410) 786–1326. comment on CMS’ intention to collect proper payment for repetitive, FOR FURTHER INFORMATION CONTACT: information from the public. Under the scheduled non-emergent ambulance William N. Parham at (410) 786–4669. Paperwork Reduction Act of 1995 (the transports. The information required in PRA), federal agencies are required to SUPPLEMENTARY INFORMATION: a prior authorization request package publish notice in the Federal Register Contents would include all medical documents concerning each proposed collection of and information to show that the This notice sets out a summary of the information (including each proposed number and level of transports use and burden associated with the extension or reinstatement of an existing requested are reasonable and necessary following information collections. More collection of information) and to allow for the beneficiary and meet other detailed information can be found in 60 days for public comment on the Medicare requirements. If an ambulance each collection’s supporting statement proposed action. Interested persons are supplier does not submit a prior and associated materials (see invited to send comments regarding our authorization request by the fourth ADDRESSES). burden estimates or any other aspect of round trip in a 30-day period, and the this collection of information, including CMS–10708 Proposed Repetitive, claim is submitted to the Medicare the necessity and utility of the proposed Scheduled Non-Emergent Ambulance Administrator Contractor (MAC) for information collection for the proper Transport (RSNAT) Prior Authorization payment, then the claim would be performance of the agency’s functions, Process and Requirements for a stopped for prepayment review and the accuracy of the estimated burden, Potential National Model medical documentation will be requested. ways to enhance the quality, utility, and Under the PRA (44 U.S.C. 3501– clarity of the information to be 3520), federal agencies must obtain Trained nurse reviewers from the collected, and the use of automated approval from the Office of Management MAC would review the information collection techniques or other forms of and Budget (OMB) for each collection of from the ambulance supplier to information technology to minimize the information they conduct or sponsor. determine if the beneficiary meets information collection burden. The term ‘‘collection of information’’ is Medicare’s requirements for the DATES: Comments must be received by defined in 44 U.S.C. 3502(3) and 5 CFR transport and if the beneficiary needs December 30, 2019. 1320.3(c) and includes agency requests the level of care requested. The MAC ADDRESSES: When commenting, please or requirements that members of the would also use the information to reference the document identifier or public submit reports, keep records, or determine if the number of trips OMB control number. To be assured provide information to a third party. requested is reasonable and necessary. consideration, comments and Section 3506(c)(2)(A) of the PRA Form Number: CMS–10708 (OMB recommendations must be submitted in requires federal agencies to publish a control number: 0938–NEW); any one of the following ways: 60-day notice in the Federal Register Frequency: Occasionally; Affected 1. Electronically. You may send your concerning each proposed collection of Public: Private Sector (Business or other comments electronically to http:// information, including each proposed for-profits, Not-for-profit institutions); www.regulations.gov. Follow the extension or reinstatement of an existing Number of Respondents: 1,745; Number instructions for ‘‘Comment or collection of information, before of Responses: 216,941; Total Annual Submission’’ or ‘‘More Search Options’’ submitting the collection to OMB for Hours: 113,706. (For questions regarding to find the information collection approval. To comply with this this collection contact Angela Gaston at document(s) that are accepting requirement, CMS is publishing this 410–786–7409.) comments. notice. Dated: October 24, 2019. 2. By regular mail. You may mail written comments to the following Information Collection William N. Parham, III, address: CMS, Office of Strategic 1. Type of Information Collection Director, Paperwork Reduction Staff, Office Operations and Regulatory Affairs, Request: New collection (Request for a of Strategic Operations and Regulatory Division of Regulations Development, new OMB control number); Title of Affairs. Attention: Document Identifier/OMB Information Collection: Proposed [FR Doc. 2019–23584 Filed 10–25–19; 8:45 am] Control Number ll, Room C4–26–05, Repetitive, Scheduled Non-Emergent BILLING CODE 4120–01–P

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DEPARTMENT OF HEALTH AND proposed collection(s) summarized in capitation of both Medicare and HUMAN SERVICES this notice, you may make your request Medicaid payments. Upon approval of a using one of following: PACE application, CMS executes a 3- Centers for Medicare & Medicaid 1. Access CMS’ website address at way program agreement with the Services https://www.cms.gov/Regulations-and- applicant entity and the applicable State [Document Identifier CMS–10631] Guidance/Legislation/ Administering Agency (SAA). CMS PaperworkReductionActof1995/PRA- regulations at 42 CFR 460.98(b)(2) Agency Information Collection Listing.html require a PO to provide PACE services Activities: Proposed Collection; 2. Email your request, including your in at least the PACE center, the home, Comment Request address, phone number, OMB number, and inpatient facilities. The PACE and CMS document identifier, to center is the focal point for the delivery AGENCY: Centers for Medicare & [email protected]. of PACE services; the center is where Medicaid Services, HHS. 3. Call the Reports Clearance Office at the interdisciplinary team (IDT) is ACTION: Notice. (410) 786–1326. located, services are provided, and FOR FURTHER INFORMATION CONTACT: socialization occurs with staff that is SUMMARY: The Centers for Medicare & William N. Parham at (410) 786–4669. consistent and familiar to participants. Medicaid Services (CMS) is announcing SUPPLEMENTARY INFORMATION: Collection of this information is an opportunity for the public to mandated by statute under sections comment on CMS’ intention to collect Contents 1894(f) and 1934(f) of the Act and at 42 information from the public. Under the This notice sets out a summary of the CFR part 460, subpart B, which Paperwork Reduction Act of 1995 (the use and burden associated with the addresses the PO application and PRA), federal agencies are required to following information collections. More waiver process. In general, PACE publish notice in the Federal Register detailed information can be found in services are provided through a PO. An concerning each proposed collection of each collection’s supporting statement entity wishing to become a PO must information (including each proposed and associated materials (see submit an application to CMS that extension or reinstatement of an existing ADDRESSES). describes how the entity meets all the collection of information) and to allow requirements in the PACE program. An 60 days for public comment on the CMS–10631 The PACE Organization Application Process in 42 CFR Part 460 entity’s application must be proposed action. Interested persons are accompanied by an assurance from the invited to send comments regarding our Under the PRA (44 U.S.C. 3501– SAA of the State in which the PO is burden estimates or any other aspect of 3520), federal agencies must obtain located. this collection of information, including approval from the Office of Management CMS recently issued a final PACE rule the necessity and utility of the proposed and Budget (OMB) for each collection of (CMS–4168–F), effective August 2, information collection for the proper information they conduct or sponsor. 2019, which updates and modernizes performance of the agency’s functions, The term ‘‘collection of information’’ is the PACE program. This final rule the accuracy of the estimated burden, defined in 44 U.S.C. 3502(3) and 5 CFR codifies CMS’ existing practice of ways to enhance the quality, utility, and 1320.3(c) and includes agency requests relying on automated review systems for clarity of the information to be or requirements that members of the processing initial applications to collected, and the use of automated public submit reports, keep records, or become a PACE organization and collection techniques or other forms of provide information to a third party. expansion applications for existing information technology to minimize the Section 3506(c)(2)(A) of the PRA PACE organizations. In addition, the information collection burden. requires federal agencies to publish a final rule will modify the PACE DATES: Comments must be received by 60-day notice in the Federal Register regulations to eliminate the need for December 30, 2019. concerning each proposed collection of PACE organizations to request waivers ADDRESSES: When commenting, please information, including each proposed for a number of the most commonly reference the document identifier or extension or reinstatement of an existing waived provisions. This latter change is OMB control number. To be assured collection of information, before expected to reduce burden and improve consideration, comments and submitting the collection to OMB for efficiency for POs, state administering recommendations must be submitted in approval. To comply with this agencies, and CMS. any one of the following ways: requirement, CMS is publishing this In addition to codifying the current 1. Electronically. You may send your notice. automated processes for the submission comments electronically to http:// and review of both initial and service Information Collection www.regulations.gov. Follow the area expansion applications, this rule instructions for ‘‘Comment or 1. Type of Information Collection modifies existing regulatory provisions Submission’’ or ‘‘More Search Options’’ Request: Revision with change of a and requirements. As a result, certain to find the information collection currently approved collection; Title of attestations associated with the document(s) that are accepting Information Collection: The PACE application are no longer applicable, comments. Organization Application Process in 42 and others need to be updated to reflect 2. By regular mail. You may mail CFR part 460; Use: The Programs of All- updated regulatory requirements. We written comments to the following Inclusive Care for the Elderly (PACE) are also making minor tweaks to certain address: CMS, Office of Strategic consist of pre-paid, capitated plans that document upload requirements for Operations and Regulatory Affairs, provide comprehensive health care clarification purposes based on Division of Regulations Development, services to frail, older adults in the experience reviewing applications. Attention: Document Identifier/OMB community who are eligible for nursing Form Number: CMS–10631 (OMB Control Number llll , Room C4– home care according to State standards. control number: 0938–1326); Frequency: 26–05, 7500 Security Boulevard, PACE organizations (PO) must provide Yearly; Affected Public: State, Local, or Baltimore, Maryland 21244–1850. all Medicare and Medicaid covered Tribal Governments; Number of To obtain copies of a supporting services; financing of this model is Respondents: 72; Total Annual statement and any related forms for the accomplished through prospective Responses: 109; Total Annual Hours:

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7,226. (For policy questions regarding Electronic Submissions with a heading or cover note that states this collection contact Debbie Vanhoven Submit electronic comments in the ‘‘THIS DOCUMENT CONTAINS at 410–786–6625.) following way: CONFIDENTIAL INFORMATION.’’ The Dated: October 24, 2019. • Federal eRulemaking Portal: Agency will review this copy, including William N. Parham, III, https://www.regulations.gov. Follow the the claimed confidential information, in its consideration of comments. The Director, Paperwork Reduction Staff, Office instructions for submitting comments. of Strategic Operations and Regulatory Comments submitted electronically, second copy, which will have the Affairs. including attachments, to https:// claimed confidential information redacted/blacked out, will be available [FR Doc. 2019–23572 Filed 10–28–19; 8:45 am] www.regulations.gov will be posted to for public viewing and posted on BILLING CODE 4120–01–P the docket unchanged. Because your comment will be made public, you are https://www.regulations.gov. Submit solely responsible for ensuring that your both copies to the Dockets Management DEPARTMENT OF HEALTH AND comment does not include any Staff. If you do not wish your name and HUMAN SERVICES confidential information that you or a contact information to be made publicly third party may not wish to be posted, available, you can provide this Food and Drug Administration such as medical information, your or information on the cover sheet and not anyone else’s Social Security number, or in the body of your comments and you [Docket No. FDA–2019–D–4258] confidential business information, such must identify this information as as a manufacturing process. Please note ‘‘confidential.’’ Any information marked Type V Drug Master Files for Center for that if you include your name, contact as ‘‘confidential’’ will not be disclosed Drug Evaluation and Research-Led information, or other information that except in accordance with 21 CFR 10.20 Combination Products Using Device identifies you in the body of your and other applicable disclosure law. For Constituent Parts With Electronics or comments, that information will be more information about FDA’s posting Software; Draft Guidance for Industry; posted on https://www.regulations.gov. of comments to public dockets, see 80 Availability • If you want to submit a comment FR 56469, September 18, 2015, or access with confidential information that you the information at: https://www.gpo.gov/ AGENCY: Food and Drug Administration, fdsys/pkg/FR-2015-09-18/pdf/2015- HHS. do not wish to be made available to the public, submit the comment as a 23389.pdf. ACTION: Notice of availability. written/paper submission and in the Docket: For access to the docket to manner detailed (see ‘‘Written/Paper read background documents or the SUMMARY: The Food and Drug Submissions’’ and ‘‘Instructions’’). electronic and written/paper comments Administration (FDA or Agency) is received, go to https:// announcing the availability of a draft Written/Paper Submissions www.regulations.gov and insert the guidance for industry entitled ‘‘Type V Submit written/paper submissions as docket number, found in brackets in the DMFs for CDER-Led Combination follows: heading of this document, into the Products Using Device Constituent Parts • Mail/Hand Delivery/Courier (for ‘‘Search’’ box and follow the prompts With Electronics or Software.’’ A drug written/paper submissions): Dockets and/or go to the Dockets Management master file (DMF) is a voluntary Management Staff (HFA–305), Food and Staff, 5630 Fishers Lane, Rm. 1061, submission to FDA that may be used to Drug Administration, 5630 Fishers Rockville, MD 20852. provide confidential detailed Lane, Rm. 1061, Rockville, MD 20852. You may submit comments on any information about facilities, processes, • For written/paper comments guidance at any time (see 21 CFR or articles used in the manufacturing, submitted to the Dockets Management 10.115(g)(5)). processing, packaging, and storing of Staff, FDA will post your comment, as Submit written requests for single one or more human drugs. This draft well as any attachments, except for copies of the draft guidance to the guidance explains when a Type V DMF information submitted, marked and Division of Drug Information, Center for may be used to submit information identified, as confidential, if submitted Drug Evaluation and Research, Food regarding a combination product for as detailed in ‘‘Instructions.’’ and Drug Administration, 10001 New which the Center for Drug Evaluation Instructions: All submissions received Hampshire Ave., Hillandale Building, and Research (CDER) has primary must include the Docket No. FDA– 4th Floor, Silver Spring, MD 20993– jurisdiction (i.e., a CDER-led 2019–D–4258 for ‘‘Type V DMFs for 0002. Send one self-addressed adhesive combination product) and which CDER-Led Combination Products Using label to assist that office in processing features a device constituent part with Device Constituent Parts With your requests. See the SUPPLEMENTARY electronics and/or software that is Electronics or Software.’’ Received INFORMATION section for electronic planned to be used as a platform, that comments will be placed in the docket access to the draft guidance document. is, may be used in multiple CDER-led and, except for those submitted as FOR FURTHER INFORMATION CONTACT: combination products. The draft ‘‘Confidential Submissions,’’ publicly Kimberly Peters, Center for Drug guidance also describes the viewable at https://www.regulations.gov Evaluation and Research, Food and administrative process and outlines the or at the Dockets Management Staff Drug Administration, Bldg. 51, Rm. recommended content for these Type V between 9 a.m. and 4 p.m., Monday 4314, 10903 New Hampshire Ave., DMF submissions and amendments. through Friday. Silver Spring, MD 20993, 301–796– DATES: Submit either electronic or • Confidential Submissions—To 6350. written comments on the draft guidance submit a comment with confidential SUPPLEMENTARY INFORMATION: by December 30, 2019 to ensure that the information that you do not wish to be Agency considers your comment on this made publicly available, submit your I. Background draft guidance before it begins work on comments only as a written/paper FDA is announcing the availability of the final version of the guidance. submission. You should submit two a draft guidance for industry entitled ADDRESSES: You may submit comments copies total. One copy will include the ‘‘Type V DMFs for CDER-Led on any guidance at any time as follows: information you claim to be confidential Combination Products Using Device

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Constituent Parts With Electronics or • Provide information that is used in DEPARTMENT OF HEALTH AND Software.’’ Some CDER-led combination making a decision regarding treatment, HUMAN SERVICES products feature a device constituent therapy, or drug delivery. Health Resources and Services part with electronics and/or software • Interface with other devices or Administration that may be used as a platform across systems to provide patient use or other multiple products. An application for information to the user or health care such a combination product may Agency Information Collection provider (e.g., physiological necessitate review by multiple centers, Activities: Submission to OMB for parameters). offices, and divisions within FDA. In Review and Approval; Nurse addition, because the device constituent • Control or drive the features of the Anesthetist Traineeship (NAT) part may be used as a platform in user interface. Program Specific Data Forms, OMB Control No. 0915–0374—Revision multiple CDER-led combination This draft guidance addresses process products, the same device information and general content expectations for AGENCY: Health Resources and Services may be applicable to and used to Type V DMFs for such device Administration (HRSA), Department of support multiple CDER submissions. constituent parts. It does not address Health and Human Services. For such combination products, a Type FDA premarket review standards or ACTION: Notice. V DMF can be an efficient mechanism expectations for such constituent parts to provide information regarding the or the combination products that SUMMARY: In compliance with the device constituent part when the same include them. This draft guidance is Paperwork Reduction Act of 1995, information is applicable to several also not intended to suggest that a Type HRSA has submitted an Information CDER applications, and additional V DMF should be submitted to CDER if Collection Request (ICR) to the Office of measures to ensure consistency are the sponsor has rights of reference to a Management and Budget (OMB) for needed. device master file located in another review and approval. Comments Further, because of rapid advances in center containing the same information. submitted during the first public review technology, the device constituent part of this ICR have been provided to OMB. This draft guidance is being issued of these types of combination products OMB will accept further comments from could be modified frequently. consistent with FDA’s good guidance the public during the review and Knowledge of these modifications is practices regulation (21 CFR 10.115). approval period. The draft guidance, when finalized, will important in determining whether they DATES: Comments on this ICR should be have any impact on the safety and represent the current thinking of FDA received no later than November 29, effectiveness of the combination on ‘‘Type V DMFs for CDER-Led 2019. product or its indications for use. Combination Products Using Device ADDRESSES: Submit your comments, Amendments to the Type V DMF Constituent Parts With Electronics or including the ICR Title, to the desk provide a regulatory pathway for the Software.’’ It does not establish any officer for HRSA, either by email to DMF holder to report device rights for any person and is not binding [email protected] or by modifications and for FDA to be notified on FDA or the public. You can use an fax to (202) 395–5806. of and to review device modifications. alternative approach if it satisfies the FOR FURTHER INFORMATION CONTACT: To Once FDA reviews the Type V DMF requirements of the applicable statutes and regulations. request a copy of the clearance requests device information for one CDER submitted to OMB for review, email Lisa application, its review may be II. Paperwork Reduction Act of 1995 Wright-Solomon, the HRSA Information applicable to other CDER applications if Collection Clearance Officer at This draft guidance refers to the device information remains [email protected] or call (301) 443– unchanged and is pertinent to products previously approved collections of 1984. in other CDER applications that also information found in FDA regulations. incorporate the DMF by reference. These collections of information are SUPPLEMENTARY INFORMATION: FDA’s ability to use previously subject to review by the Office of Information Collection Request Title: completed scientific reviews for a DMF Management and Budget (OMB) under Nurse Anesthetist Traineeship (NAT) Program Specific Data Forms, OMB can contribute to an efficient FDA the Paperwork Reduction Act of 1995 Control No. 0915–0374—Revision. review process and help ensure (44 U.S.C. 3501–3520). The collections Abstract: HRSA provides advanced consistency across CDER applications of information in 21 CFR 314.420 have education nursing training grants to referencing the same information. been approved under OMB control educational institutions to increase the number 0910–0001. This draft guidance applies to Type V numbers of Certified Registered Nurse DMF submissions as described above for III. Electronic Access Anesthetists through the NAT Program. CDER-led combination products. The NAT Program is authorized by Specifically, the information in this Persons with access to the internet Section 811 of the Public Health Service draft guidance may be appropriate for may obtain the draft guidance at either (PHS) Act (42 U.S.C. 296j). The NAT device constituent parts with electronics https://www.fda.gov/Drugs/ Tables request information on program and/or software that meet the statutory GuidanceCompliance participants such as the number of definition of a device and perform RegulatoryInformation/Guidances/ enrollees/trainees, number of enrollees/ functions such as the following: default.htm or https:// trainees supported, number of • Facilitate drug delivery in a manner www.regulations.gov. graduates, number of graduates that may include patient input or Dated: October 22, 2019. supported, number of projected analysis (e.g., an electromechanically enrollees/trainees, degree program driven pen injector with software that Lowell J. Schiller, (Master’s and Doctoral), and the allows input of patient or dosing Principal Associate Commissioner for Policy. distribution of Nurse Anesthetists who information or that analyzes dosing or [FR Doc. 2019–23585 Filed 10–28–19; 8:45 am] practice in underserved, rural, and/or device use information). BILLING CODE 4164–01–P public health practice settings.

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Need and Proposed Use of the HRSA is revising the forms that disclose, or provide the information Information: Funds appropriated for the previously collected one year of data on requested. This includes the time NAT Program are distributed among prospective students to capture three needed to review instructions; to eligible institutions based on a formula, years of data, thereby allowing HRSA to develop, acquire, install, and utilize as permitted by PHS Act section calculate award amounts for a multi- technology and systems for the purpose 806(e)(1). HRSA uses the data from the year project period. Table 1 will add of collecting, validating, and verifying NAT Tables to determine if the Funding columns to collect Year 2 and Year 3 information, processing and Factors (either the Statutory Funding data for the number of prospective maintaining information, and disclosing Preference or Special Consideration) are students. While Table 2 data collection and providing information; to train elements will not change, the header met, determine the award amount, personnel and to be able to respond to will change to provide further ensure compliance with programmatic a collection of information; to search clarification about the data being and grant requirements, and provide collected. data sources; to complete and review information to the public and Congress. Likely Respondents: Respondents will the collection of information; and to The NAT Tables currently collect one be applicants to HRSA’s NAT Program. transmit or otherwise disclose the year of data, which allows HRSA to Burden Statement: Burden in this information. The total annual burden calculate award amounts for a single- context means the time expended by hours estimated for this ICR are year project period. For fiscal year 2020, persons to generate, maintain, retain, summarized in the table below.

TOTAL ESTIMATED ANNUALIZED BURDEN—HOURS

Average Number of Number of Total burden per Total burden Form name respondents responses per responses response hours respondent (in hours)

Table 1—NAT: Enrollment, Traineeship Support, Grad- uate, Graduates Supported and Projected Data ...... 100 1 100 3.5 350 Table 2—NAT: Graduate Data—Rural, Underserved, or Public Health ...... 100 1 100 2.8 280

Total ...... * 100 ...... 100 ...... 630 * The same respondents are completing Tables 1 and Table 2.

Maria G. Button, Special Emphasis Panel; Conference Support DEPARTMENT OF HOMELAND Director, Executive Secretariat. (R13) Review. SECURITY [FR Doc. 2019–23564 Filed 10–28–19; 8:45 am] Date: November 19, 2019. BILLING CODE 4165–15–P Time: 12:30 p.m. to 2:30 p.m. U.S. Immigration and Customs Agenda: To review and evaluate grant Enforcement applications. DEPARTMENT OF HEALTH AND Place: National Cancer Institute Shady [OMB Control Number 1653–0042] HUMAN SERVICES Grove, 9609 Medical Center Drive, Rockville, MD 20850 (Telephone Conference Call). Agency Information Collection National Institutes of Health Contact Person: John P. Holden, Ph.D., Activities: Extension of a Currently Scientific Review Officer, National Institute Approved Collection: Obligor Change National Institute of Biomedical of Biomedical Imaging and Bioengineering, of Address Imaging and Bioengineering; Notice of National Institutes of Health, 6707 Closed Meeting AGENCY: U.S. Immigration and Customs Democracy Boulevard, Suite 920, Bethesda, Enforcement, Department of Homeland Pursuant to section 10(d) of the MD 20892, (301) 496–8775, john.holden@ Security. nih.gov. Federal Advisory Committee Act, as ACTION: 30-Day notice. amended, notice is hereby given of a Dated: October 23, 2019. meeting of the National Institute of Miguelina Perez, SUMMARY: In accordance with the Biomedical Imaging and Bioengineering Program Analyst, Office of Federal Advisory Paperwork Reductions Act (PRA) of Special Emphasis Panel. Committee Policy. 1995 the Department of Homeland The meetings will be closed to the [FR Doc. 2019–23553 Filed 10–28–19; 8:45 am] Security (DHS), U.S. Immigration and public in accordance with the Customs Enforcement (ICE) will submit provisions set forth in sections BILLING CODE 4140–01–P the following Information Collection 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Request (ICR) to the Office of as amended. The grant applications and Management and Budget (OMB) for the discussions could disclose review and clearance. This information confidential trade secrets or commercial collection was previously published in property such as patentable material, the Federal Register on July 24, 2019, and personal information concerning allowing for a 60-day comment period. individuals associated with the grant ICE received no comments in applications, the disclosure of which connection with the 60-day notice. would constitute a clearly unwarranted Based on better estimates, ICE is making invasion of personal privacy. an adjustment from the 60-day notice to Name of Committee: National Institute of reflect a decrease in the number of Biomedical Imaging and Bioengineering respondents. The purpose of this notice

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is to allow an additional 30 days for abstract: Primary: Individual or DEPARTMENT OF THE INTERIOR public comments. Households, Business or other DATES: Comments are encouraged and nonprofit. The data collected on this Bureau of Indian Affairs will be accepted until November 29, form is used by ICE to ensure accuracy [190A2100DD/AAKC001030/ 2019. in correspondence between ICE and the A0A501010.999900 253G] ADDRESSES: Interested persons are obligor. The form serves the purpose of Johnson-O’Malley Program; invited to submit written comments standardizing obligor notification of any Preliminary Report and/or suggestions regarding the item(s) changes in their address and will contained in this notice, especially facilitate communication with the AGENCY: Bureau of Indian Affairs, regarding the estimated public burden obligor. Interior. and associated response time, to the (5) An estimate of the total number of ACTION: Notice of comment period. Office of Information and Regulatory respondents and the amount of time Affairs, Office of Management and estimated for an average respondent to SUMMARY: As required by the Johnson- Budget. Comments should be addressed respond: 2,000 responses at 15 minutes O’Malley (JOM) Act of 1934, as to the OMB Desk Officer for U.S. (.25 hours) per response. amended by the JOM Supplemental Immigration and Customs Enforcement, Indian Education Program Department of Homeland Security, and (6) An estimate of the total public Modernization Act, the Bureau of Indian sent via electronic mail to burden (in hours) associated with the Education (BIE) is publishing a [email protected] or faxed to collection: 500 annual burden hours. Preliminary Report that describes the (202) 395–5806. All submissions must Dated: October 24, 2019. number of eligible Indian students include the words ‘‘Department of Scott Elmore, served or potentially served by each Homeland Security’’ and the OMB eligible entity, using the most applicable PRA Clearance Officer. Control Number 1653–0042. and accurate data from the fiscal year [FR Doc. 2019–23573 Filed 10–28–19; 8:45 am] SUPPLEMENTARY INFORMATION: proceeding the fiscal year for which the BILLING CODE 9111–28–P initial determination is to be made. BIE Comments is also seeking written comments from Written comments and suggestions eligible entities to gain feedback about from the public and affected agencies the preliminary report. INTER-AMERICAN FOUNDATION concerning the proposed collection of DATES: Comments must be received on information should address one or more Sunshine Act Meetings or before December 30, 2019. of the following four points: ADDRESSES: Send comments by email to (1) Evaluate whether the proposed [email protected] or by mail to collection of information is necessary TIME AND DATE: November 4, 2019, 1:00 p.m.–5:00 p.m. Bureau of Indian Education, ATTN: for the proper performance of the JOM Comments, C/O Maureen Lesky, functions of the agency, including PLACE: Nelson Mullins Riley & Program Manager, 1011 Indian School whether the information will have Scarborough, 101 Constitution Ave. Road NW, Suite 332, Albuquerque, NM practical utility; NW, #900, Washington, DC 20001. 87104. (2) Evaluate the accuracy of the FOR FURTHER INFORMATION CONTACT: agencies estimate of the burden of the STATUS: Meeting of the Board of Ms. proposed collection of information, Directors and Advisory Council, open to Angela Barnett, JOM Program Specialist, including the validity of the the public, portion closed to the public. Bureau of Indian Education, telephone: methodology and assumptions used; (405) 605–6051, email: JOMcomments@ MATTERS TO BE CONSIDERED: (3) Enhance the quality, utility, and bie.edu. clarity of the information to be D Approval of Past Meeting Minutes SUPPLEMENTARY INFORMATION: The JOM collected; and D Welcome and President’s Report Act of 1934 was passed to subsidize (4) Minimize the burden of the education, medical services, and other D 50th Anniversary collection of information on those who social services provided to Indians are to respond, including through the D Management Report living within the borders of States and use of appropriate automated, D New Business territories. Today, JOM funding is used electronic, mechanical, or other to support programs designed to meet D Adjournment technological collection techniques or the specialized and unique educational other forms of information technology, PORTION TO BE CLOSED TO THE PUBLIC: and cultural needs of eligible Indian students, including programs that e.g., permitting electronic submission of D Executive session closed to the public responses. supplement existing school as provided for by 22 CFR 1004.4(b) programming operational supports. Overview of This Information & (f) The JOM Supplemental Indian Collection CONTACT PERSON FOR MORE INFORMATION: Education Program Modernization Act (1) Type of Information Collection: Nicole Stinson, Acting General Counsel, of 2018, Public Law 115–404, directs the Extension of a Currently Approved (202) 683–7117. Secretary of the Interior (Secretary) to Collection. publish a preliminary report describing (2) Title of the Form/Collection: Nicole Stinson, the number of eligible Indian students Obligor Change of Address. Acting General Counsel. served or potentially served by each (3) Agency form number, if any, and [FR Doc. 2019–23719 Filed 10–25–19; 4:15 pm] eligible entity, using the most applicable the applicable component of the and accurate data from the fiscal year BILLING CODE 7025–01–P Department of Homeland Security proceeding the fiscal year for which the sponsoring the collection: I–333; ICE. initial determination is to be made from (4) Affected public who will be asked the: or required to respond, as well as a brief 1. Bureau of the Census;

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2. National Center for Education the Government of India. Unless the Commission antidumping duty and Statistics; or Department of Commerce (‘‘Commerce’’) countervailing duty investigations. The 3. Office of Indian Education of the extends the time for initiation, the Secretary will prepare a public service Department of Education. Commission must reach a preliminary list containing the names and addresses The preliminary report and additional determination in antidumping and of all persons, or their representatives, information are at the BIE JOM web countervailing duty investigations in 45 who are parties to these investigations page at: https://www.bie.edu/JOM/. The days, or in this case by December 9, upon the expiration of the period for BIE seeks feedback about the 2019. The Commission’s views must be filing entries of appearance. preliminary report from eligible entities. transmitted to Commerce within five Limited disclosure of business BIE will then consider the feedback in business days thereafter, or by proprietary information (BPI) under an preparing the final report. December 16, 2019. administrative protective order (APO) Before including your address, phone DATES: October 23, 2019. and BPI service list.—Pursuant to section 207.7(a) of the Commission’s number, email address, or other FOR FURTHER INFORMATION CONTACT: rules, the Secretary will make BPI personal identifying information in your Christopher Watson (202.205.2684), gathered in these investigations comment, you should be aware that Office of Investigations, U.S. available to authorized applicants your entire comment—including your International Trade Commission, 500 E representing interested parties (as personal identifying information—may Street SW, Washington, DC 20436. defined in 19 U.S.C. 1677(9)) who are be made publicly available at any time. Hearing-impaired persons can obtain parties to the investigations under the While you can ask us in your comment information on this matter by contacting APO issued in the investigations, to withhold your personal identifying the Commission’s TDD terminal on 202– provided that the application is made information from public review, we 205–1810. Persons with mobility not later than seven days after the cannot guarantee that we will be able to impairments who will need special do so. publication of this notice in the Federal assistance in gaining access to the Register. A separate service list will be Dated: September 26, 2019. Commission should contact the Office maintained by the Secretary for those Tara Sweeney, of the Secretary at 202–205–2000. parties authorized to receive BPI under Assistant Secretary—Indian Affairs. General information concerning the the APO. [FR Doc. 2019–23617 Filed 10–28–19; 8:45 am] Commission may also be obtained by Conference.—The Commission’s BILLING CODE 4337–15–P accessing its internet server (https:// Director of Investigations has scheduled www.usitc.gov). The public record for a conference in connection with these these investigations may be viewed on investigations for 9:30 a.m. on INTERNATIONAL TRADE the Commission’s electronic docket Wednesday, November 13, 2019, at the COMMISSION (EDIS) at https://edis.usitc.gov. U.S. International Trade Commission SUPPLEMENTARY INFORMATION: Building, 500 E Street SW, Washington, [Investigation Nos. 701–TA–631 and 731– Background.—These investigations DC. Requests to appear at the conference TA–1463–1464 (Preliminary)] are being instituted, pursuant to should be emailed to Forged Steel Fittings From India and sections 703(a) and 733(a) of the Tariff [email protected] (DO Korea; Institution of Anti-Dumping and Act of 1930 (19 U.S.C. 1671b(a) and NOT FILE ON EDIS) on or before Countervailing Duty Investigations and 1673b(a)), in response to a petition filed November 8, 2019. Parties in support of Scheduling of Preliminary Phase on October 23, 2019, by Bonney Forge the imposition of countervailing and Investigations Corporation (‘‘Bonney’’), Mount Union, antidumping duties in these Pennsylvania and the United Steel, investigations and parties in opposition AGENCY: United States International Paper and Forestry, Rubber, to the imposition of such duties will Trade Commission. Manufacturing, Energy, Allied each be collectively allocated one hour ACTION: Notice. Industrial and Service Workers within which to make an oral International Union (‘‘USW’’), presentation at the conference. A SUMMARY: The Commission hereby gives Pittsburgh, Pennsylvania (collectively nonparty who has testimony that may notice of the institution of investigations ‘‘Petitioners’’). aid the Commission’s deliberations may and commencement of preliminary For further information concerning request permission to present a short phase antidumping and countervailing the conduct of these investigations and statement at the conference. duty investigation Nos. 701–TA–631 rules of general application, consult the Written submissions.—As provided in and 731–TA–1463–1464 (Preliminary) Commission’s Rules of Practice and sections 201.8 and 207.15 of the pursuant to the Tariff Act of 1930 (‘‘the Procedure, part 201, subparts A and B Commission’s rules, any person may Act’’) to determine whether there is a (19 CFR part 201), and part 207, submit to the Commission on or before reasonable indication that an industry subparts A and B (19 CFR part 207). November 18, 2019, a written brief in the United States is materially Participation in the investigations and containing information and arguments injured or threatened with material public service list.—Persons (other than pertinent to the subject matter of the injury, or the establishment of an petitioners) wishing to participate in the investigations. Parties may file written industry in the United States is investigations as parties must file an testimony in connection with their materially retarded, by reason of entry of appearance with the Secretary presentation at the conference. All imports of forged steel fittings from to the Commission, as provided in written submissions must conform with India and Korea, provided for in sections 201.11 and 207.10 of the the provisions of section 201.8 of the subheading 7307.92.30, 7307.92.90, Commission’s rules, not later than seven Commission’s rules; any submissions 7307.93.30, 7307.93.60, 7307.93.90, days after publication of this notice in that contain BPI must also conform with 7307.99.10, 7307.99.30, and 7307.99.50 the Federal Register. Industrial users the requirements of sections 201.6, of the Harmonized Tariff Schedule of and (if the merchandise under 207.3, and 207.7 of the Commission’s the United States, that are alleged to be investigation is sold at the retail level) rules. The Commission’s Handbook on sold in the United States at less than fair representative consumer organizations Filing Procedures, available on the value and alleged to be subsidized by have the right to appear as parties in Commission’s website at https://

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www.usitc.gov/documents/handbook_ Thereof, DN 3418; the Commission is Proposed respondents, other on_filing_procedures.pdf, elaborates soliciting comments on any public interested parties, and members of the upon the Commission’s procedures with interest issues raised by the complaint public are invited to file comments on respect to filings. or complainant’s filing pursuant to the any public interest issues raised by the In accordance with sections 201.16(c) Commission’s Rules of Practice and complaint or § 210.8(b) filing. and 207.3 of the rules, each document Procedure. Comments should address whether filed by a party to the investigations FOR FURTHER INFORMATION CONTACT: Lisa issuance of the relief specifically must be served on all other parties to R. Barton, Secretary to the Commission, requested by the complainant in this the investigations (as identified by U.S. International Trade Commission, investigation would affect the public either the public or BPI service list), and 500 E Street SW, Washington, DC health and welfare in the United States, a certificate of service must be timely 20436, telephone (202) 205–2000. The competitive conditions in the United filed. The Secretary will not accept a public version of the complaint can be States economy, the production of like document for filing without a certificate accessed on the Commission’s or directly competitive articles in the of service. Electronic Document Information United States, or United States Certification.—Pursuant to section System (EDIS) at https://edis.usitc.gov, consumers. 207.3 of the Commission’s rules, any and will be available for inspection In particular, the Commission is person submitting information to the during official business hours (8:45 a.m. interested in comments that: (i) Explain how the articles Commission in connection with these to 5:15 p.m.) in the Office of the potentially subject to the requested investigations must certify that the Secretary, U.S. International Trade remedial orders are used in the United information is accurate and complete to Commission, 500 E Street SW, States; the best of the submitter’s knowledge. In Washington, DC 20436, telephone (202) making the certification, the submitter (ii) identify any public health, safety, 205–2000. or welfare concerns in the United States will acknowledge that any information General information concerning the relating to the requested remedial that it submits to the Commission Commission may also be obtained by during these investigations may be orders; accessing its internet server at United (iii) identify like or directly disclosed to and used: (i) By the States International Trade Commission Commission, its employees and Offices, competitive articles that complainant, (USITC) at https://www.usitc.gov. The its licensees, or third parties make in the and contract personnel (a) for public record for this investigation may developing or maintaining the records United States which could replace the be viewed on the Commission’s subject articles if they were to be of these or related investigations or Electronic Document Information reviews, or (b) in internal investigations, excluded; System (EDIS) at https://edis.usitc.gov. (iv) indicate whether complainant, audits, reviews, and evaluations relating Hearing-impaired persons are advised to the programs, personnel, and complainant’s licensees, and/or third that information on this matter can be party suppliers have the capacity to operations of the Commission including obtained by contacting the under 5 U.S.C. Appendix 3; or (ii) by replace the volume of articles Commission’s TDD terminal on (202) potentially subject to the requested U.S. government employees and 205–1810. contract personnel, solely for exclusion order and/or a cease and SUPPLEMENTARY INFORMATION: The desist order within a commercially cybersecurity purposes. All contract Commission has received a complaint personnel will sign appropriate reasonable time; and and a submission pursuant to § 210.8(b) (v) explain how the requested nondisclosure agreements. of the Commission’s Rules of Practice remedial orders would impact United Authority: These investigations are being and Procedure filed on behalf of States consumers. conducted under authority of title VII of the EcoFactor, Inc. on October 23, 2019. The Written submissions on the public Tariff Act of 1930; this notice is published complaint alleges violations of section interest must be filed no later than by pursuant to section 207.12 of the 337 of the Tariff Act of 1930 (19 U.S.C. Commission’s rules. close of business, eight calendar days 1337) in the importation into the United after the date of publication of this By order of the Commission. States, the sale for importation, and the notice in the Federal Register. There Issued: October 23, 2019. sale within the United States after will be further opportunities for Lisa Barton, importation of certain smart comment on the public interest after the Secretary to the Commission. thermostats, smart HVAC systems, and issuance of any final initial [FR Doc. 2019–23558 Filed 10–28–19; 8:45 am] components thereof. The complaint determination in this investigation. Any BILLING CODE 7020–02–P names as respondents: Ecobee Ltd. of written submissions on other issues Canada; Ecobee, Inc. of Canada; Google must also be filed by no later than the LLC of Mountain View, CA; Alarm.com close of business, eight calendar days INTERNATIONAL TRADE Incorporated of Tysons, VA; Alarm.com after publication of this notice in the COMMISSION Holdings, Inc. of Tysons, VA; Daikin Federal Register. Complainant may file Industries, Ltd. of Japan; Daikin replies to any written submissions no Notice of Receipt of Complaint; America, Inc. of Orangeburg, NY; Daikin later than three calendar days after the Solicitation of Comments Relating to North America LLC of Houston, TX; date on which any initial submissions the Public Interest Schneider Electric USA, Inc. of were due. Any submissions and replies AGENCY: U.S. International Trade Andover, MA; Schneider Electric SE of filed in response to this Notice are Commission. France; and Vivint, Inc. of Provo, UT. limited to five (5) pages in length, ACTION: Notice. The complainant requests that the inclusive of attachments. Commission issue a limited exclusion Persons filing written submissions SUMMARY: Notice is hereby given that order, cease and desist orders and must file the original document the U.S. International Trade impose a bond upon respondents’ electronically on or before the deadlines Commission has received a complaint alleged infringing articles during the 60- stated above and submit 8 true paper entitled Certain Smart Thermostats, day Presidential review period pursuant copies to the Office of the Secretary by Smart HVAC Systems, and Components to 19 U.S.C. 1337(j). noon the next day pursuant to § 210.4(f)

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of the Commission’s Rules of Practice INTERNATIONAL TRADE internet server (https://www.usitc.gov). and Procedure (19 CFR 210.4(f)). COMMISSION Persons with mobility impairments who will need special assistance in gaining Submissions should refer to the docket [Investigation No. 332–501] number (‘‘Docket No. 3418’’) in a access to the Commission should prominent place on the cover page and/ Textile and Apparel Imports From contact the Office of the Secretary at or the first page. (See Handbook for China: Statistical Reports 202–205–2000. Electronic Filing Procedures, Electronic Background: In its original request AGENCY: United States International Filing Procedures 1). Persons with letter received on October 14, 2008, the Trade Commission. questions regarding filing should Committee requested that the contact the Secretary (202–205–2000). ACTION: Notice of change in statistical Commission provide statistical reports report format and publication every 2 weeks on the volume, value, Any person desiring to submit a frequency. document to the Commission in unit value, and import market share of confidence must request confidential SUMMARY: Following receipt of a request certain textile and apparel imports from treatment. All such requests should be on October 3, 2019, from the Committee China, based on preliminary Customs data and final Census data. The directed to the Secretary to the on Ways and Means of the U.S. House Committee asked that the Commission Commission and must include a full of Representatives (Committee) under compile these data for each product statement of the reasons why the section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)), the U.S. covered by a Memorandum of Commission should grant such Understanding between the United treatment. See 19 CFR 201.6. Documents International Trade Commission (Commission) has changed the format States and China, set to expire for which confidential treatment by the December 31, 2008, at both the three- Commission is properly sought will be and publication frequency of the statistical reports it provides under digit textile/apparel category level and treated accordingly. All information, at the 10-digit Harmonized Tariff including confidential business Investigation No. 332–501, Textile and Apparel Imports from China: Statistical Schedule level for each product within information and documents for which Reports. The Commission will each of the three-digit textile/apparel confidential treatment is properly discontinue the current biweekly categories. The Committee also sought, submitted to the Commission for reports and annual compilations and requested that the Commission publish purposes of this Investigation may be will instead provide quarterly reports. a compilation of monthly Census data disclosed to and used: (i) By the on an annual basis. The Committee DATES: Commission, its employees and Offices, asked that the Commission continue to October 23, 2019: Effective date of provide these reports until such time and contract personnel (a) for change in report format and publication that the Committee terminates or developing or maintaining the records frequency. amends the request. As requested by the of this or a related proceeding, or (b) in November 27, 2019: Publication of Committee, the Commission has internal investigations, audits, reviews, first quarterly statistical report. and evaluations relating to the published these reports on its website ADDRESSES: All Commission offices, programs, personnel, and operations of (with any confidential business including the Commission’s hearing information deleted). the Commission including under 5 rooms, are located in the United States U.S.C. Appendix 3; or (ii) by U.S. International Trade Commission Notice of the Commission’s government employees and contract Building, 500 E Street SW, Washington, institution of this investigation was personnel,2 solely for cybersecurity DC. All written submissions should be published in the Federal Register of purposes. All nonconfidential written addressed to the Secretary, United November 5, 2008 (73 FR 65882); it is submissions will be available for public States International Trade Commission, also posted at https://www.govinfo.gov/ inspection at the Office of the Secretary 500 E Street SW, Washington, DC content/pkg/FR-2008-11-05/pdf/E8- and on EDIS.3 20436. The public record for this 26362.pdf. This action is taken under the investigation may be viewed on the Change in Report Format and authority of section 337 of the Tariff Act Commission’s electronic docket (EDIS) Frequency: Through its October 3, 2019 of 1930, as amended (19 U.S.C. 1337), at https://edis.usitc.gov. letter, the Committee has now modified and of §§ 201.10 and 210.8(c) of the FOR FURTHER INFORMATION CONTACT: its request to ask that the Commission’s Commission’s Rules of Practice and Information specific to this investigation statistical reports no longer include the preliminary Customs data and that the Procedure (19 CFR 201.10, 210.8(c)). may be obtained from Laura Thayn, Project Leader, Office of Analysis and Commission, in future reports, (1) By order of the Commission. Research Services (202–205–1852 or provide only the updated final Census Issued: October 23, 2019. [email protected]). For information data, (2) provide these reports on a Lisa Barton, on the legal aspects of these quarterly basis, and (3) post them on the Secretary to the Commission. investigations, contact William Gearhart Commission’s website. The Committee also stated that the Commission may [FR Doc. 2019–23557 Filed 10–28–19; 8:45 am] of the Commission’s Office of the General Counsel (202–205–3091 or discontinue publication of the annual BILLING CODE 7020–02–P [email protected]). The media reports because the data in these reports should contact Margaret O’Laughlin, are already included in the statistical Office of External Relations (202–205– reports. 1819 or [email protected]). 1 Handbook for Electronic Filing Procedures: By order of the Commission. https://www.usitc.gov/documents/handbook_on_ Hearing-impaired individuals may Issued: October 23, 2019. _ obtain information on this matter by filing procedures.pdf. Lisa Barton, 2 All contract personnel will sign appropriate contacting the Commission’s TDD Secretary to the Commission. nondisclosure agreements. terminal at 202–205–1810. General 3 Electronic Document Information System information concerning the Commission [FR Doc. 2019–23555 Filed 10–28–19; 8:45 am] (EDIS): https://edis.usitc.gov. may also be obtained by accessing its BILLING CODE 7020–02–P

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INTERNATIONAL TRADE that such articles should not be excluded handbook_on_electronic_filing.pdf). COMMISSION from entry. Persons with questions regarding filing should contact the Secretary (202–205– [Investigation No. 337–TA–1089] 19 U.S.C. 1337(d)(1). The Commission is interested in 2000). Any person desiring to submit a Certain Memory Modules and further development of the record on document to the Commission in Components Thereof; Notice of the public interest in this investigation. confidence must request confidential Request for Submissions on the Public Accordingly, members of the public are treatment. All such requests should be Interest invited to file submissions of no more directed to the Secretary to the than five (5) pages, inclusive of AGENCY: Commission and must include a full U.S. International Trade attachments, concerning the public statement of the reasons why the Commission. interest in light of the administrative ACTION: Notice. Commission should grant such law judge’s recommended treatment. See 19 CFR 201.6. Documents determination on remedy and bonding SUMMARY: Notice is hereby given that for which confidential treatment by the issued in this investigation on October the presiding administrative law judge Commission is properly sought will be 21, 2019. Comments should address (‘‘ALJ’’) has issued a recommended treated accordingly. All information, whether issuance of the recommended determination on remedy and bonding including confidential business limited exclusion order in this should a violation be found in the information and documents for which investigation would affect the public above-captioned investigation. The confidential treatment is properly health and welfare in the United States, Commission is soliciting submissions sought, submitted to the Commission for competitive conditions in the United on public interest issues raised by the purposes of this Investigation may be States economy, the production of like recommended limited exclusion order disclosed to and used: (i) By the or directly competitive articles in the against certain memory modules and Commission, its employees and Offices, United States, or United States components thereof, manufactured and and contract personnel (a) for consumers. imported by respondents SK hynix, Inc.; developing or maintaining the records In particular, the Commission is SK hynix America, Inc.; and SK hynix of this or a related proceeding, or (b) in interested in comments that: memory solutions, Inc. This notice is internal investigations, audits, reviews, (i) Explain how the articles soliciting comments from the public and evaluations relating to the potentially subject to the recommended only. Parties are to file public interest programs, personnel, and operations of limited exclusion order are used in the submissions pursuant to 19 CFR the Commission including under 5 United States; 210.50(a)(4). U.S.C. Appendix 3; or (ii) by U.S. (ii) identify any public health, safety, government employees and contract FOR FURTHER INFORMATION CONTACT: or welfare concerns in the United States personnel,1 solely for cybersecurity Robert Needham, Office of the General relating to the recommended limited purposes. All nonconfidential written Counsel, U.S. International Trade exclusion order; submissions will be available for public Commission, 500 E Street SW, (iii) identify like or directly inspection at the Office of the Secretary Washington, DC 20436, telephone (202) competitive articles that complainant, and on EDIS. 708–5468. The public version of the its licensees, or third parties make in the This action is taken under the complaint can be accessed on the United States which could replace the authority of section 337 of the Tariff Act Commission’s electronic docket (EDIS) subject articles if they were to be of 1930, as amended (19 U.S.C. 1337), at https://edis.usitc.gov, and will be excluded; and in Part 210 of the Commission’s available for inspection during official (iv) indicate whether complainant, Rules of Practice and Procedure (19 CFR business hours (8:45 a.m. to 5:15 p.m.) complainant’s licensees, and/or third part 210). in the Office of the Secretary, U.S. party suppliers have the capacity to International Trade Commission, 500 E replace the volume of articles By order of the Commission. Street SW, Washington, DC 20436, potentially subject to the recommended Issued: October 23, 2019. telephone (202) 205–2000. General limited exclusion order within a Lisa Barton, information concerning the Commission commercially reasonable time; and Secretary to the Commission. may also be obtained by accessing its (v) explain how the recommended [FR Doc. 2019–23556 Filed 10–28–19; 8:45 am] internet server (https://www.usitc.gov). limited exclusion order would impact BILLING CODE 7020–02–P The public record for this investigation consumers in the United States. may be viewed on the Commission’s Written submissions must be filed no electronic docket (EDIS) at http:// later than by close of business on DEPARTMENT OF JUSTICE edis.usitc.gov. Hearing-impaired November 25, 2019. persons are advised that information on Persons filing written submissions Antitrust Division this matter can be obtained by must file the original document contacting the Commission’s TDD electronically on or before the deadlines Notice Pursuant to the National terminal on (202) 205–1810. stated above and submit 8 true paper Cooperative Research and Production Act of 1993—UHD Alliance, Inc. SUPPLEMENTARY INFORMATION: Section copies to the Office of the Secretary by 337 of the Tariff Act of 1930 provides noon the next day pursuant to section Notice is hereby given that, on that, if the Commission finds a 210.4(f) of the Commission’s Rules of October 15, 2019, pursuant to Section violation, it shall exclude the articles Practice and Procedure (19 CFR 6(a) of the National Cooperative concerned from the United States: 210.4(f)). Submissions should refer to Research and Production Act of 1993, the investigation number (‘‘Inv. No. unless, after considering the effect of such 15 U.S.C. 4301 et seq. (‘‘the Act’’), UHD exclusion upon the public health and 337–TA–1089’’) in a prominent place on Alliance, Inc. (‘‘UHD Alliance’’) filed welfare, competitive conditions in the United the cover page and/or the first page. (See written notifications simultaneously States economy, the production of like or Handbook for Electronic Filing directly competitive articles in the United Procedures, http://www.usitc.gov/ 1 All contract personnel will sign appropriate States, and United States consumers, it finds secretary/fed_reg_notices/rules/ nondisclosure agreements.

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with the Attorney General and the FOR FURTHER INFORMATION CONTACT: If respondents will complete the Federal Trade Commission disclosing you have additional comments application in approximately 20 changes in its membership. The especially on the estimated public minutes. notifications were filed for the purpose burden or associated response time, 6. An estimate of the total public of extending the Act’s provisions suggestions, or need a copy of the burden (in hours) associated with the limiting the recovery of antitrust proposed information collection collection: The estimated public burden plaintiffs to actual damages under instrument with instructions or associated with this collection is 1,667 specified circumstances. Specifically, additional information, please contact hours. It is estimated that applicants Westinghouse Electronics, Eastvale, CA Chiwoniso S. Gurira, Senior Personnel will take 20 minutes to complete the has been added as a party to this Psychologist, Research and Analysis online survey. The burden hours for venture. Staff, Drug Enforcement Administration, collecting respondent data sum to 1,667 In addition, HiSilicon Technologies 8701 Morrissette Drive, Springfield, VA hours (5,000 respondents × 20 minutes Co., Ltd., Shenzhen, PEOPLE’S 22152. = 100,000 hours. 100,000/60 seconds = REPUBLIC OF CHINA; and Philips SUPPLEMENTARY INFORMATION: Written 1,667). International B.V.–IP&S, Eindhoven, comments and suggestions from the If additional information is required NETHERLANDS have withdrawn as public and affected agencies concerning contact: Melody Braswell, Department parties to this venture. the proposed collection of information Clearance Officer, United States Department of Justice, Justice No other changes have been made in are encouraged. Your comments should Management Division, Policy and either the membership or planned address one or more of the following Planning Staff, Two Constitution activity of the group research project. four points: Membership in this group research Square, 145 N Street NE, 3E.405B, —Evaluate whether the proposed Washington, DC 20530. project remains open, and UHD Alliance collection of information is necessary intends to file additional written for the proper performance of the Dated: October 24, 2019. notifications disclosing all changes in functions of the agency, including Melody Braswell, membership. whether the information will have Department Clearance Officer for PRA, U.S. On June 17, 2015, UHD Alliance filed practical utility; Department of Justice. its original notification pursuant to —Evaluate the accuracy of the agency’s [FR Doc. 2019–23576 Filed 10–28–19; 8:45 am] Section 6(a) of the Act. The Department estimate of the burden of the BILLING CODE 4410–09–P of Justice published a notice in the proposed collection of information, Federal Register pursuant to Section including the validity of the 6(b) of the Act on July 17, 2015 (80 FR methodology and assumptions used; DEPARTMENT OF LABOR 42537). —Evaluate whether and if so how the The last notification was filed with quality, utility, and clarity of the Employment and Training the Department on July 22, 2019. A information to be collected can be Administration notice was published in the Federal enhanced; and Register pursuant to Section 6(b) of the —Minimize the burden of the collection Agency Information Collection Act on August 9, 2019 (84 FR 39371). of information on those who are to Activities; Submission for OMB Review; Comment Request; Trade Suzanne Morris, respond, including through the use of appropriate automated, electronic, Adjustment Assistance (TAA) Efforts Chief, Premerger and Division Statistics Unit To Improve Outcomes; Correction Antitrust Division. mechanical, or other technological [FR Doc. 2019–23608 Filed 10–28–19; 8:45 am] collection techniques or other forms ACTION: Notice; correction. of information technology, e.g., BILLING CODE P permitting electronic submission of SUMMARY: The Department of Labor’s responses. (DOL’s) Employment and Training DEPARTMENT OF JUSTICE Overview of this information Administration (ETA) published a document in the Federal Register of [OMB Number 1117–0051] collection: 1. Type of Information Collection: September 25, 2019, soliciting public comments on the Trade Adjustment Agency Information Collection Proposed collection. Assistance (TAA) Efforts to Improve Activities; Proposed eCollection 2. The Title of the Form/Collection: Outcomes Information Collection eComments Requested; Extension of a DEA Leadership Engagement Survey. 3. The agency form number, if any, Request (84 FR 50475). The document Previously Approved Collection: DEA contained an incorrect date by which Leadership Engagement Survey and the applicable component of the Department sponsoring the collection: written comments must be received. AGENCY: Drug Enforcement Online survey. FOR FURTHER INFORMATION CONTACT: Administration, Department of Justice. 4. Affected public who will be asked Robert Hoekstra by telephone at 202– ACTION: 60-Day notice. or required to respond, as well as a brief 693–3522 (this is not a toll-free abstract: The affected public is Drug number), or by email at hoekstra.robert@ SUMMARY: The Department of Justice Enforcement Administration contractors dol.gov. (DOJ), Drug Enforcement and Task Force Officers. The Leadership Correction Administration, will be submitting the Engagement Survey is an initiative following information collection request mandated by Acting Administrator, In the Federal Register of September to the Office of Management and Budget DEA, to assess and improve 25, 2019, in FR Doc. 2019–20743 on (OMB) for review and approval in competencies and proficiency of page 50475 (84 FR 50475) in the second accordance with the Paperwork leadership across DEA. column, correct the DATES caption to Reduction Act of 1995. 5. An estimate of the total number of read: DATES: Comments are encouraged and respondents and the amount of time DATES: Consideration will be given to all will be accepted for 60 days until estimated for an average respondent to written comments received by December 30, 2019. respond: It is estimated that 5000 November 24, 2019.

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Dated: October 15, 2019. comments, including any personal Each NRTL’s scope of recognition John Pallasch, information you provide, are placed in includes (1) the type of products the Assistant Secretary for Employment and the public docket without change, and NRTL may test, with each type specified Training. may be made available online at http:// by the applicable test standard; and (2) [FR Doc. 2019–23622 Filed 10–25–19; 8:45 am] www.regulations.gov. the recognized site(s) that has/have the BILLING CODE 4510–FN–P Docket: To read or download technical capability to perform the comments or other material in the product-testing and product- docket, go to http://www.regulations.gov certification activities for test standards DEPARTMENT OF LABOR or the OSHA Docket Office at the above within the NRTL’s scope. Recognition is address. All documents in the docket not a delegation or grant of government Occupational Safety and Health (including this Federal Register notice) authority; however, recognition enables Administration are listed in the http:// employers to use products approved by [Docket No. OSHA–2007–0042] www.regulations.gov index; however, the NRTL to meet OSHA standards that some information (e.g., copyrighted require product testing and certification. TUV Rheinland of North America, Inc.: material) is not publicly available to The agency processes an application Application for Expansion of read or download through the website. by a NRTL for initial recognition and for Recognition All submissions, including copyrighted an expansion or renewal of this material, are available for inspection at recognition, following requirements in AGENCY: Occupational Safety and Health the OSHA Docket Office. Contact the Appendix A, 29 CFR 1910.7. This Administration (OSHA), Labor. OSHA Docket Office for assistance in appendix requires that the agency ACTION: Notice. locating docket submissions. publish two notices in the Federal Register in processing an application. In SUMMARY: Extension of comment period: Submit In this notice, OSHA the first notice, OSHA announces the announces the application of TUV requests for an extension of the comment period on or before November application and provides a preliminary Rheinland of North America, Inc. finding. In the second notice, the agency (TUVRNA) for expansion of recognition 13, 2019 to the Office of Technical Programs and Coordination Activities, provides final decision on the as a Nationally Recognized Testing application. These notices set forth the Laboratory (NRTL) and presents the Directorate of Technical Support and Emergency Management, Occupational NRTL’s scope of recognition or agency’s preliminary finding to grant modifications of that scope. OSHA the application. Safety and Health Administration, U.S. Department of Labor, 200 Constitution maintains an informational web page for DATES: Submit comments, information, Avenue NW, Room N–3653, each NRTL, including TUVRNA, which and documents in response to this details the NRTL’s scope of recognition. notice, or requests for an extension of Washington, DC 20210, or by fax to (202) 693–1644. These pages are available from the time to make a submission, on or before OSHA website at http://www.osha.gov/ FOR FURTHER INFORMATION CONTACT: November 13, 2019. dts/otpca/nrtl/index.html. ADDRESSES: Submit comments by any of Information regarding this notice is TUVRNA currently has nine facilities the following methods: available from the following sources: (sites) recognized by OSHA for product Electronically: You may submit Press inquiries: Contact Mr. Frank testing and certification, with its comments and attachments Meilinger, Director, OSHA Office of headquarters located at: TUV Rheinland electronically at: http:// Communications, U.S. Department of of North America, Inc., 12 Commerce www.regulations.gov, which is the Labor by phone (202) 693–1999 or email Road, Newtown, Connecticut 06470. A Federal eRulemaking Portal. Follow the [email protected]. complete list of TUVRNA sites instructions online for submitting General and technical information: recognized by OSHA is available at comments. Contact Mr. Kevin Robinson, Director, https://www.osha.gov/dts/otpca/nrtl/ Facsimile: If your comments, Office of Technical Programs and tuv.html. including attachments, are not longer Coordination Activities, Directorate of than 10 pages, you may fax them to the Technical Support and Emergency II. General Background on the OSHA Docket Office at (202) 693–1648. Management, Occupational Safety and Applications Mail, hand delivery, express mail, Health Administration, U.S. Department TUVRNA submitted two applications, messenger, or courier service: When of Labor by phone (202) 693–2110 or one dated March 30, 2016 (OSHA– using this method, you must submit a email [email protected]. 2007–0042–0030) and another dated copy of your comments and attachments SUPPLEMENTARY INFORMATION: April 19, 2017 (OSHA–2007–0042– to the OSHA Docket Office, Docket No. 0031), to expand the scope of I. Notice of the Application for OSHA–2007–0042, Occupational Safety recognition to include the addition of Expansion and Health Administration, U.S. four recognized testing and certification Department of Labor, Room N–3653, OSHA is providing notice that sites and the addition of two test 200 Constitution Avenue NW, TUVRNA is applying for expansion of standards to its scope of recognition. Washington, DC 20210; telephone: (202) the scope of recognition as a NRTL. OSHA preliminarily determined that 693–2350. Note that security procedures TUVRNA requests the addition of one OSHA should grant the applications for may result in significant delays in test standard to the NRTL scope of expansion. receiving comments and other written recognition. OSHA published a Federal Register materials by regular mail. Deliveries OSHA recognition of a NRTL signifies notice (83 FR 3662), July 20, 2018 (hand, express mail, messenger, and that the organization meets the announcing these applications, but courier service) are accepted during the requirements specified in 29 CFR referenced one incorrect standard in the Docket Office’s normal business hours, 1910.7. Recognition is an listing of appropriate test standards (UL 10:00 a.m. to 3:00 p.m., ET. acknowledgment that the organization 698A). OSHA further published a Instructions: All submissions must can perform independent safety testing Federal Register notice (84 FR 26160 include the agency name and OSHA and certification of the specific products June 5, 2019) granting recognition for docket number (OSHA–2007–0042). All covered within the scope of recognition. the four sites and the two additional

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standards requested in the application. Health whether to grant TUVRNA’s Certificates of Indemnity submitted to This notice is being issued to correct an application for expansion of its scope of the Federal Council on the Arts and the incorrect standard referenced in FRN recognition. The Assistant Secretary Humanities, for exhibitions beginning (83 FR 36625) and to allow for public will make the final decision on granting on or after January 1, 2020. Because the comment on the one remaining standard the application. In making this decision, meeting will consider proprietary (UL 698A). the Assistant Secretary may undertake financial and commercial data provided Table 1 lists the appropriate test other proceedings prescribed in in confidence by indemnity applicants, standard found in TUVRNA’s Appendix A to 29 CFR 1910.7. and material that is likely to disclose application for expansion for testing and OSHA will publish a public notice of trade secrets or other privileged or certification of products under the its final decision in the Federal confidential information, and because it NRTL Program. Register. is important to keep the values of objects to be indemnified and the IV. Authority and Signature TABLE 1—PROPOSED LIST OF APPRO- methods of transportation and security PRIATE TEST STANDARD FOR INCLU- Loren Sweatt, Principal Deputy measures confidential, I have SION IN TUVRNA’S NRTL SCOPE Assistant Secretary of Labor for determined that that the meeting will be OF RECOGNITION Occupational Safety and Health, closed to the public pursuant to authorized the preparation of this subsection (c)(4) of section 552b of Title notice. Accordingly, the agency is Test Test standard title 5, United States Code. I have made this standard issuing this notice pursuant to 29 U.S.C. determination under the authority 657(g)(2), Secretary of Labor’s Order No. granted me by the Chairman’s UL 698A.. Standard for Industrial Control 1–2012 (77 FR 3912, Jan. 25, 2012), and Panels Relating to Hazardous Delegation of Authority to Close (Classified) Locations. 29 CFR 1910.7. Advisory Committee Meetings, dated Signed at Washington, DC, on October 23, April 15, 2016. III. Preliminary Findings on the 2019. Dated: October 24, 2019. Application Loren Sweatt, Elizabeth Voyatzis, TUVRNA submitted an acceptable Principal Deputy Assistant Secretary of Labor Committee Management Officer, Federal for Occupational Safety and Health. application for expansion of scope of Council on the Arts and the Humanities & recognition. OSHA’s review of the [FR Doc. 2019–23570 Filed 10–28–19; 8:45 am] Deputy General Counsel, National application file and pertinent BILLING CODE 4510–26–P Endowment for the Humanities. documentation indicates that TUVRNA [FR Doc. 2019–23589 Filed 10–28–19; 8:45 am] can meet the requirements prescribed by BILLING CODE 7536–01–P 29 CFR 1910.7 for expanding NATIONAL FOUNDATION ON THE recognition to include the addition of ARTS AND THE HUMANITIES this one test standard for NRTL testing NATIONAL SCIENCE FOUNDATION and certification listed above. This Federal Council on the Arts and the preliminary finding does not constitute Humanities Agency Information Collection an interim or temporary approval of Activities: Comment Request; Grantee Arts and Artifacts Indemnity Panel TUVRNA’s application. Reporting Requirements for Nanoscale Advisory Committee OSHA welcomes public comment as Science and Engineering Centers to whether TUVRNA meets the AGENCY: Federal Council on the Arts (NSECs) requirements of 29 CFR 1910.7 for and the Humanities; National AGENCY: National Science Foundation. expansion of recognition as a NRTL. Foundation on the Arts and the ACTION: Notice. Comments should consist of pertinent Humanities. written documents and exhibits. ACTION: Notice of meeting. SUMMARY: The National Science Commenters needing more time to Foundation (NSF) is announcing plans comment must submit a request in SUMMARY: Pursuant to the Federal to renew this collection. In accordance writing, stating the reasons for the Advisory Committee Act, notice is with the requirements of the Paperwork request. Commenters must submit the hereby given that the Federal Council Reduction Act of 1995, we are providing written request for an extension by the on the Arts and the Humanities will opportunity for public comment on this due date for comments. OSHA will limit hold a meeting of the Arts and Artifacts action. After obtaining and considering any extension to 10 days unless the International Indemnity Panel. public comment, NSF will prepare the requester justifies a longer period. DATES: The meeting will be held on submission requesting Office of OSHA may deny a request for an Thursday, November 14, 2019, from Management and Budget (OMB) extension if the request is not 12:00 p.m. to 5:00 p.m. clearance of this collection for no longer adequately justified. To obtain or review ADDRESSES: than 3 years. copies of the exhibits identified in this The meeting will be held by notice, as well as comments submitted teleconference originating at the DATES: Written comments on this notice to the docket, contact the Docket Office, National Endowment for the Arts, must be received by December 30, 2019 at the above address. These materials Washington, DC 20506. to be assured consideration. Comments also are available online at http:// FOR FURTHER INFORMATION CONTACT: received after that date will be www.regulations.gov under Docket No. Elizabeth Voyatzis, Committee considered to the extent practicable. OSHA–2007–0042. Management Officer, 400 7th Street SW, Send comments to address below. OSHA will review all comments to Room 4060, Washington, DC 20506, FOR FURTHER INFORMATION CONTACT: the docket submitted in a timely manner (202) 606–8322; [email protected]. Suzanne H. Plimpton, Reports Clearance and, after addressing the issues raised SUPPLEMENTARY INFORMATION: The Officer, National Science Foundation, by these comments, will make a purpose of the meeting is for panel 2415 Eisenhower Avenue, Suite recommendation to the Assistant review, discussion, evaluation, and W18200, Alexandria, Virginia 22314; Secretary for Occupational Safety and recommendation on applications for telephone (703) 292–7556; or send email

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to [email protected]. Individuals who knowledge transfer activities; patents, NUCLEAR REGULATORY use a telecommunications device for the licenses; publications; degrees granted COMMISSION deaf (TDD) may call the Federal to students involved in Center activities; [NRC–2019–0001] Information Relay Service (FIRS) at 1– descriptions of significant advances and 800–877–8339, which is accessible 24 other outcomes of the NSEC effort. Such Sunshine Act Meetings hours a day, 7 days a week, 365 days a reporting requirements will be included year (including Federal holidays). in the cooperative agreement which is TIME AND DATE: Weeks of October 28, SUPPLEMENTARY INFORMATION: binding between the academic November 4, 11, 18, 25, December 2, Title of Collection: Grantee Reporting institution and the NSF. 2019. Requirements for Nanoscale Science Each Center’s annual report will PLACE: Commissioners’ Conference and Engineering Centers (NSECs). address the following categories of Room, 11555 Rockville Pike, Rockville, OMB Number: 3145–0229. activities: (1) Research, (2) education, Maryland. Expiration Date of Approval: (3) knowledge transfer, (4) partnerships, STATUS: Public and Closed. December 31, 2019. (5) diversity, (6) management and (7) Week of October 28, 2019 Type of Request: Intent to seek budget issues. approval to renew an information For each of the categories the report Tuesday, October 29, 2019 collection. will describe overall objectives for the 10:00 a.m. Transformation at the NRC— Proposed Project: The Nanoscale year, problems the Center has Becoming a Modern, Risk-Informed Science and Engineering Centers encountered in making progress towards Regulator (Public Meeting); (NSECs) Program supports innovation in goals, anticipated problems in the (Contact: Alysia Bone: 301–415– the integrative conduct of research, following year, and specific outputs and 1034). education, and knowledge transfer. outcomes. Week of November 4, 2019—Tentative NSECs build intellectual and physical NSECs are required to file a final infrastructure within and between report through the RPPR and external There are no meetings scheduled for disciplines, weaving together technical assistance contractor. Final the week of November 4, 2019. knowledge creation, knowledge reports contain similar information and Week of November 11, 2019—Tentative integration, and knowledge transfer. metrics as annual reports, but are There are no meetings scheduled for NSECs conduct world-class research retrospective. through partnerships of academic the week of November 11, 2019. Use of the Information: NSF will use institutions, national laboratories, Week of November 18, 2019—Tentative industrial organizations, and/or other the information to continue funding of public/private entities. New knowledge the Centers, and to evaluate the progress There are no meetings scheduled for thus created is meaningfully linked to of the program. the week of November 18, 2019. society. NSECs enable and foster Estimate of Burden: 200 hours per Week of November 25, 2019—Tentative excellent education, integrate research center for thirteen centers for a total of 2,600 hours. There are no meetings scheduled for and education, and create bonds the week of November 25, 2019. between learning and inquiry so that Respondents: Non-profit institutions. discovery and creativity more fully Estimated Number of Responses per Week of December 2, 2019—Tentative support the learning process. NSECs Report: One from each of the thirteen There are no meetings scheduled for capitalize on diversity through NSECs. the week of December 2, 2019. participation in center activities and Comments: Comments are invited on CONTACT PERSON FOR MORE INFORMATION: demonstrate leadership in the (a) whether the proposed collection of For more information or to verify the involvement of groups information is necessary for the proper status of meetings, contact Denise underrepresented in science and performance of the functions of the McGovern at 301–415–0681 or via email engineering. Agency, including whether the at [email protected]. The NSECs will be required to submit information shall have practical utility; schedule for Commission meetings is annual reports on progress and plans, (b) the accuracy of the Agency’s subject to change on short notice. which will be used as a basis for estimate of the burden of the proposed The NRC Commission Meeting performance review and determining collection of information; (c) ways to Schedule can be found on the internet the level of continued funding. To enhance the quality, utility, and clarity at: http://www.nrc.gov/public-involve/ support this review and the of the information on respondents, public-meetings/schedule.html. management of a Center, NSECs will be including through the use of automated The NRC provides reasonable required to develop a set of management collection techniques or other forms of accommodation to individuals with and performance indicators for information technology; and (d) ways to disabilities where appropriate. If you submission annually to NSF via the minimize the burden of the collection of need a reasonable accommodation to Research Performance Project Reporting information on those who are to participate in these public meetings or module in Research.gov and an external respond, including through the use of need this meeting notice or the technical assistance contractor that appropriate automated, electronic, transcript or other information from the collects programmatic data mechanical, or other technological public meetings in another format (e.g., electronically. These indicators are both collection techniques or other forms of braille, large print), please notify Anne quantitative and descriptive and may information technology. Silk, NRC Disability Program Specialist, include, for example, the characteristics at 301–287–0745, by videophone at of center personnel and students; Dated: October 24, 2019. 240–428–3217, or by email at sources of financial support and in-kind Suzanne H. Plimpton, [email protected]. Determinations on support; expenditures by operational Reports Clearance Officer, National Science requests for reasonable accommodation component; characteristics of industrial Foundation. will be made on a case-by-case basis. and/or other sector participation; [FR Doc. 2019–23571 Filed 10–28–19; 8:45 am] Members of the public may request to research activities; education activities; BILLING CODE 7555–01–P receive this information electronically.

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If you would like to be added to the Service request, the title of each Postal SUMMARY: The Postal Service gives distribution, please contact the Nuclear Service request, the request’s acceptance notice of filing a request with the Postal Regulatory Commission, Office of the date, and the authority cited by the Regulatory Commission to add a Secretary, Washington, DC 20555 (301– Postal Service for each request. For each domestic shipping services contract to 415–1969), or by email at Tyesha.Bush@ request, the Commission appoints an the list of Negotiated Service nrc.gov. officer of the Commission to represent Agreements in the Mail Classification The NRC is holding the meetings the interests of the general public in the Schedule’s Competitive Products List. under the authority of the Government proceeding, pursuant to 39 U.S.C. 505 DATES: Date of required notice: October in the Sunshine Act, 5 U.S.C. 552b. (Public Representative). Section II also 29, 2019. establishes comment deadline(s) Dated at Rockville, Maryland, this 25th day FOR FURTHER INFORMATION CONTACT: pertaining to each request. of October 2019. Sean Robinson, 202–268–8405. For the Nuclear Regulatory Commission. The public portions of the Postal Service’s request(s) can be accessed via SUPPLEMENTARY INFORMATION: The Denise L. McGovern, ® the Commission’s website (http:// United States Postal Service hereby Policy Coordinator, Office of the Secretary. www.prc.gov). Non-public portions of gives notice that, pursuant to 39 U.S.C. [FR Doc. 2019–23674 Filed 10–25–19; 11:15 am] the Postal Service’s request(s), if any, 3642 and 3632(b)(3), on October 23, BILLING CODE 7590–01–P can be accessed through compliance 2019, it filed with the Postal Regulatory with the requirements of 39 CFR Commission a USPS Request to Add 3007.301.1 Priority Mail Contract 556 to POSTAL REGULATORY COMMISSION The Commission invites comments on Competitive Product List. Documents [Docket Nos. MC2020–15 and CP2020–14] whether the Postal Service’s request(s) are available at www.prc.gov, Docket in the captioned docket(s) are consistent Nos. MC2020–15, CP2020–14. with the policies of title 39. For New Postal Product Sean Robinson, request(s) that the Postal Service states AGENCY: Postal Regulatory Commission. concern market dominant product(s), Attorney, Corporate and Postal Business Law. ACTION: Notice. applicable statutory and regulatory [FR Doc. 2019–23536 Filed 10–28–19; 8:45 am] requirements include 39 U.S.C. 3622, 39 BILLING CODE 7710–12–P SUMMARY: The Commission is noticing a U.S.C. 3642, 39 CFR part 3010, and 39 recent Postal Service filing for the CFR part 3020, subpart B. For request(s) Commission’s consideration concerning that the Postal Service states concern POSTAL SERVICE a negotiated service agreement. This competitive product(s), applicable notice informs the public of the filing, Mailing Cremated Remains statutory and regulatory requirements invites public comment, and takes other include 39 U.S.C. 3632, 39 U.S.C. 3633, TM administrative steps. AGENCY: Postal Service . 39 U.S.C. 3642, 39 CFR part 3015, and ACTION: Notice. DATES: Comments are due: October 31, 39 CFR part 3020, subpart B. Comment 2019. deadline(s) for each request appear in SUMMARY: The Postal Service is ADDRESSES: Submit comments section II. amending Hazardous, Restricted, and electronically via the Commission’s II. Docketed Proceeding(s) Perishable Mail, Publication 52, in Filing Online system at http:// various sections to require markings on www.prc.gov. Those who cannot submit 1. Docket No(s).: MC2020–15 and mailpieces containing cremated comments electronically should contact CP2020–14; Filing Title: USPS Request remains, to eliminate the use of USPS- the person identified in the FOR FURTHER to Add Priority Mail Contract 556 to produced Priority Mail Express® labels INFORMATION CONTACT section by Competitive Product List and Notice of for domestic shipments, and to limit the telephone for advice on filing Filing Materials Under Seal; Filing use of additional mailing services. alternatives. Acceptance Date: October 23, 2019; DATES: Date of publication in the Postal FOR FURTHER INFORMATION CONTACT: Filing Authority: 39 U.S.C. 3642, 39 CFR 3020.30 et seq., and 39 CFR 3015.5; Bulletin: November 7, 2019. David A. Trissell, General Counsel, at FOR FURTHER INFORMATION CONTACT: 202–789–6820. Public Representative: Curtis E. Kidd; Comments Due: October 31, 2019. Karen F. Key at (202) 268–7492 or Garry SUPPLEMENTARY INFORMATION: This Notice will be published in the Rodriguez at (202) 268–7281. Table of Contents Federal Register. SUPPLEMENTARY INFORMATION: The Postal I. Introduction Darcie S. Tokioka, Service published a notice of prospective revision of standards; II. Docketed Proceeding(s) Acting Secretary. invitation to comment on September 17, I. Introduction [FR Doc. 2019–23565 Filed 10–28–19; 8:45 am] 2019, (84 FR 48959–48960) to: The Commission gives notice that the BILLING CODE 7710–FW–P 1. Require the use of Label 139, Postal Service filed request(s) for the Cremated Remains, on all domestic or Commission to consider matters related international mailpieces containing to negotiated service agreement(s). The POSTAL SERVICE cremated remains. 2. Eliminate the use of Labels 11–B, request(s) may propose the addition or Product Change—Priority Mail 11–F, and 11–HFPU, for domestic removal of a negotiated service Negotiated Service Agreement agreement from the market dominant or shipments containing cremated remains. the competitive product list, or the AGENCY: Postal ServiceTM. 3. Limit the additional mailing modification of an existing product ACTION: Notice. services for mailpieces containing currently appearing on the market cremated remains to insurance and dominant or the competitive product return receipt. 1 See Docket No. RM2018–3, Order Adopting list. Final Rules Relating to Non-Public Information, The Postal Service did not receive any Section II identifies the docket June 27, 2018, Attachment A at 19–22 (Order No. comments to this notice of prospective number(s) associated with each Postal 4679). revision of standards.

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To increase the visibility of be incorporated into Publication 52 to address the specific wrong-way risk mailpieces containing cremated remains within the next few weeks. Publication presented by certain cleared positions. to postal employees and to ensure those 52 is provided in its entirety on Postal The proposed amendments to OCC’s mailpieces are more secure for Explorer® at pe.usps.com. Rules are included in Exhibit 5A of the processing and timely delivery, the In addition, the Postal Service will filing.3 The proposed amendments to Postal Service is requiring the use of update Mailing Standards of the United OCC’s Margin Policy and Margins Label 139 to be affixed to each side States Postal Service, Domestic Mail Methodology are included in Exhibits (including top and bottom) of a Priority Manual (DMM®) and International Mail 5B and 5C, respectively. The proposed Mail Express or Priority Mail Express Manual (IMM®), and Publication 139, amendments to OCC’s Clearing Fund International mailpiece containing How to Package and Ship Cremated Methodology Policy (‘‘CFM Policy’’) and cremated remains (USPS-produced or Remains, under separate cover. Stress Testing and Clearing Fund customer supplied). As an alternative, These revisions will enable the Postal Methodology Description the Postal Service is introducing a Service to provide an improved (‘‘Methodology Description’’) are special Priority Mail Express cremated customer experience from sender to included in Exhibits 5D and 5E, remains branded box (BOX–CRE) that receiver. respectively. Material proposed to be may be used for domestic or * * * * * added to the Rules, Margin Policy and international shipments of cremated Margins Methodology as currently in remains. The new Priority Mail Express Brittany M. Johnson, effect is marked by underlining, and cremated remains branded box will be Attorney, Federal Compliance. material proposed to be deleted is available as part of a kit that will be [FR Doc. 2019–23543 Filed 10–28–19; 8:45 am] marked in strikethrough text; however, offered in two versions. One kit will BILLING CODE 7710–12–P the proposed Specific Wrong-Way Risk contain the box and a roll of tape. The Add-On chapter of the Margins other kit will include the box, a self- Methodology is presented without sealing plastic bag, bubble wrap, tape, SECURITIES AND EXCHANGE marking to improve readability as the and Publication 139, How to Package COMMISSION entire chapter is newly proposed rule and Ship Cremated Remains. Both kits 4 [Release No. 34–87387; File No. SR–OCC– text. Material proposed to be added to can be ordered online at the Postal Store the CFM Policy and Methodology ® 2019–010] on USPS.com . Description is marked by double To improve service, the Postal Service Self-Regulatory Organizations; The underlining, and material proposed to is providing an option for retail Options Clearing Corporation; Notice be deleted is marked in double customers to present a mailpiece of Filing of Proposed Rule Change strikethrough text.5 The proposed containing cremated remains at a Post ® Related to Proposed Changes to the changes are described in detail in Item Office location and have a shipping Options Clearing Corporation’s Rules, II below. label printed and affixed. Customers Margin Policy, Margin Methodology, The proposed rule change is available will continue to have the option to use Clearing Fund Methodology Policy, on OCC’s website at https:// a single-ply Priority Mail Express label and Clearing Fund and Stress Testing www.theocc.com/about/publications/ generated through Click-N-Ship or other Methodology To Address Specific bylaws.jsp. All terms with initial USPS-approved method. If customers Wrong-Way Risk capitalization that are not otherwise generate a single-ply label, the Postal defined herein have the same meaning Service is requiring an Intelligent Mail® October 23, 2019. ® as set forth in the OCC By-Laws and package barcode (IMpb ) shipping label Pursuant to Section 19(b)(1) of the Rules.6 with the appropriate service type code Securities Exchange Act of 1934 and banner text above the barcode (see (‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule II. Clearing Agency’s Statement of the Publication 199) used for cremated 19b–4 thereunder,2 notice is hereby Purpose of, and Statutory Basis for, the remains domestic shipments. The given that on October 10, 2019, the Proposed Rule Change shipping services file must include the Options Clearing Corporation (‘‘OCC’’) In its filing with the Commission, appropriate cremated remains three- filed with the Securities and Exchange OCC included statements concerning digit Extra Service Code for domestic Commission (‘‘Commission’’) the the purpose of and basis for the and international shipments (see proposed rule change as described in proposed rule change and discussed any Publication 199). The use of a Priority Items I, II, and III below, which Items comments it received on the proposed Mail Express Label 11–B, 11–F, and 11– have been prepared primarily by OCC. rule change. The text of these statements HFPU, will no longer be accepted for The Commission is publishing this cremated remains domestic shipments. notice to solicit comments on the 3 The Commission notes that exhibits referenced As a result of improving service with proposed rule change from interested herein are included in the filing submitted by OCC the new shipping label requirements, persons. to the Commission, but are not included in this the Postal Service is limiting the extra Notice. services available when mailing I. Clearing Agency’s Statement of the 4 OCC also has filed an advance notice with the Commission in connection with the proposed cremated remains to additional Terms of Substance of the Proposed Rule Change changes. See SR–OCC–2019–807. insurance and return receipt, and is 5 OCC also filed with the Commission proposed eliminating the option to use Hold For The proposed rule change is filed in rule change and advance notice filings concerning Pickup service. Customers will continue connection with proposed enhancements to its CFM Policy and Methodology to have the option to request a signature. Description, which are currently pending enhancements to OCC’s Rules, margin Commission review. See SR–OCC–2019–009 and The specific revisions to Publication policy and methodology, Clearing Fund SR–OCC–2019–806. OCC has marked proposed 52, Hazardous, Restricted, and policy, and Clearing Fund and stress changes to the CFM Policy and Methodology Perishable Mail referenced in this notice testing methodology to adopt new Description described herein in double marking to will be published in Postal Bulletin clearly differentiate those changes from other margin charges and other risk measures changes currently pending Commission review. 22532 on November 7, 2019, and can be 6 OCC’s By-Laws and Rules can be found on viewed at http://about.usps.com/postal- 1 15 U.S.C. 78s(b)(1). OCC’s public website: http://optionsclearing.com/ bulletin. These revisions are expected to 2 17 CFR 240.19b–4. about/publications/bylaws.jsp.

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may be examined at the places specified proposing a new ‘‘add-on’’ charge 9 for Hedge Program and (2) the Market Loan in Item IV below. OCC has prepared its margin methodology, the System for Program (collectively, the ‘‘Stock Loan summaries, set forth in sections (A), (B), Theoretical Analysis and Numerical Programs’’). In the Stock Loan/Hedge and (C) below, of the most significant Simulations (‘‘STANS’’),10 and new Program, prospective Lending and aspects of these statements. stress test scenarios that may result in Borrowing Clearing Members identify intra-day margin calls and, in more A. Clearing Agency’s Statement of the each other (independent of OCC), agree extreme cases, intra-month increases in to bilaterally negotiated terms of the Purpose of, and Statutory Basis for, the the size of OCC’s Clearing Fund 11 to Proposed Rule Change stock loan (in this case, a ‘‘Hedge address the wrong-way risk of OCC’s Loan’’), and then send the details of the 1. Purpose cleared positions involving Clearing stock loan to the Depository Trust Member-issued securities. In addition, Background Company (‘‘DTC’’) designating the stock OCC proposes to introduce certain loan as a Hedge Loan for guaranty and As a central counterparty (‘‘CCP’’), restrictions on stock lending activity clearance at OCC. The Lending Clearing OCC is exposed to wrong-way risk, related to SWWR positions. Member then instructs DTC to transfer which is the risk that arises when Proposed Changes a specified number of shares of Eligible exposure to a counterparty is adversely Stock 12 to the account of the Borrowing OCC proposes to enhance its correlated with the credit quality and Clearing Member, and the Borrowing management of SWWR by: (1) Imposing probability of default of that Clearing Member instructs DTC to certain restrictions on stock lending counterparty. Specific wrong-way risk transfer the appropriate amount of cash activity at OCC; (2) adopting a new (‘‘SWWR’’) arises when an exposure to collateral to the account of the Lending a participant is highly likely to increase SWWR margin add-on for STANS (‘‘SWWR Add-on’’); (3) introducing new Clearing Member. In the Market Loan when the creditworthiness of that Program, stock loans are initiated participant is deteriorating.7 For stress test scenarios to capture the SWWR of cleared positions involving through the matching of bids and offers example, SWWR arises where a Clearing that are either agreed upon by the Member’s cleared positions contain Clearing Member-issued ETNs beyond certain pre-defined thresholds; and (4) Market Loan Clearing Members or equity securities issued by the Clearing matched anonymously through a Loan Member or its affiliates (i.e., the Clearing making other clarifying and conforming Market (such stock loans being ‘‘Market Member Group) (such positions referred changes to the CFM Policy and Loans’’). In order to initiate a Market to herein as ‘‘SWWR Equity positions’’) Methodology Description. The proposed Loan, the Loan Market sends a matched as the equity issued by the Clearing changes are intended to address the transaction to OCC, which in turn sends Member Group may be assumed to have credit risks arising from SWWR two separate but linked settlement a price at or near zero in a default or positions at OCC. The proposed changes instructions to DTC to effect the bankruptcy scenario, and those are described in detail below. movement of Eligible Stock and cash positions (e.g., equity used as a hedge, 1. Prohibition on Lending Clearing collateral between the accounts of the stock loans, options on equity, single- Member/Affiliate-Issued Securities Market Loan Clearing Members through stock futures) may experience OCC operates two programs for stock OCC’s account at DTC. substantial losses. In addition, SWWR loan transactions: (1) The Stock Loan/ may arise where uncollateralized Regardless of whether a transaction is exchange-traded notes (‘‘ETNs’’) issued initiated under the Stock Loan/Hedge 9 Under OCC’s Margin Policy, OCC may Program or Market Loan Program, OCC by a Clearing Member or its affiliates collateralize certain exposures through the use of (‘‘SWWR ETN positions’’) are part of the add-on charges. novates the transaction and becomes the Clearing Member’s cleared positions 10 See Securities Exchange Act Release No. 53322 lender to the Borrowing Clearing (these positions, collectively with (February 15, 2006), 71 FR 9403 (February 23, 2006) Member and the borrower to the (SR–OCC–2004–20). A detailed description of the Lending Clearing Member. As the ‘‘SWWR Equity positions,’’ are STANS methodology is available at http:// hereinafter referred to as ‘‘SWWR optionsclearing.com/risk-management/margins/. principal counterparty to the Borrowing positions’’). SWWR may also arise when 11 Under OCC’s existing stress testing and and Lending Clearing Members, OCC a Clearing Member posts equity Clearing Fund methodology, OCC runs on a daily guarantees the return of the full value of basis a set of stress test scenarios designed to cash collateral to a Borrowing Clearing securities or ETNs issued by it or of its measure the exposure of the Clearing Fund to the affiliates as margin collateral. portfolios of individual Clearing Member Groups Member and guarantees the return of the OCC currently accounts for SWWR as and determine whether any such exposure is Loaned Stock (or value of that Loaned it relates to margin collateral by sufficiently large as to necessitate OCC calling for Stock) to the Lending Clearing additional resources so that OCC continues to Member.13 As noted above, OCC may be generally prohibiting a Clearing Member maintain sufficient financial resources to guard from pledging equities issued by it or against potential losses under a wide range of stress exposed to SWWR in its Stock Loan one of its affiliates as margin collateral scenarios, including extreme but plausible market Programs where Clearing Members lend unless this pledge provides a hedge conditions (‘‘Sufficiency Scenarios,’’ and such equity securities or ETNs issued by the scenarios collectively constituting ‘‘Sufficiency Clearing Member or its affiliates. against a cleared position in the same Stress Tests’’). See Securities Exchange Act Release 8 account. OCC does not, however, No. 83714 (July 26, 2018), 83 FR 37570 (August 1, Specifically, the lending of Clearing currently account for SWWR as it relates 2018) (SR–OCC–2018–803) and Securities Exchange Member or Member Affiliate-issued to cleared positions. As a result, OCC is Act Release No. 83735 (July 27, 2018), 83 FR 37855 equity or ETNs creates a long exposure (August 2, 2018) (SR–OCC–2018–008). Under OCC and liability in the case when a Clearing Rule 609, the CFM Policy, and the Methodology 7 See Securities Exchange Act Release No. 78961 Description, if a Sufficiency Stress Test identifies (September 28, 2016), 81 FR 70786, 70816, n. 317 exposures that exceed 75% of the current Clearing 12 OCC’s By-Laws define ‘‘Eligible Stock’’ to (October 13, 2016) (S7–03–14) (‘‘Standards for Fund requirement less deficits (the ‘‘75% mean, in part, any security that is eligible for Covered Clearing Agencies’’). See also Committee threshold’’ or ‘‘Sufficiency Stress Test Threshold lending in the Stock Loan/Hedge Program and the on Payment and Settlement Systems and Technical 1’’), OCC may require additional margin deposits Market Loan Program. See Article I, Section 1.E(3) Committee of the International Organization of from the Clearing Member Group(s) driving the of the OCC By-Laws. Eligible Stock may include Securities Commissions, Principles for financial breach. If a Sufficiency Stress Test identifies ETNs issued by OCC’s Clearing Members. market infrastructures (Apr. 16, 2012), available at exposures that exceed 90% of the current Clearing 13 Under the Market Loan Program, OCC also http://www.bis.org/publ/cpss101a.pdf. Fund, OCC would perform an intra-month resizing provides a limited guaranty of dividend and rebate 8 See OCC Rule 604, Interpretation and Policy .16. of the Clearing Fund. Id. payments.

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Member defaults and its own or The proposed rule change would only potential gain from the SWWR positions affiliated equity or ETN declines. apply to stock lending activity as of the would be excluded by flooring the OCC proposes to mitigate SWWR in time of implementation of the proposed SWWR Equity Charge at zero.17 As a its Stock Loan Programs by prohibiting rule change. The proposed rule change result, OCC believes that the proposed Clearing Members from lending any would not be applied retroactively to SWWR Equity Charge would adequately Eligible Stock issued by such Clearing existing open positions, and Clearing cover the SWWR arising from a Clearing Member or any affiliate of such Clearing Members with open stock loans Member’s SWWR Equity positions. involving Clearing Member or Member Member. The proposed restriction b. SWWR ETN Charge would apply to both SWWR Equity Affiliate-issued Eligible Stock would not positions and SWWR ETN positions. be forced to terminate those existing In addition to SWWR that arises from OCC does not believe that the proposed positions. Any SWWR stock lending equity securities issued by a Clearing restriction on lending SWWR Equity positions in existence as of the Member or its affiliates, OCC is also positions would have a material impact implementation of the proposed rule exposed to SWWR from open positions on Clearing Members in the Stock Loan change would be subject to the SWWR related to the uncollateralized ETNs Programs as Clearing Members do not charges described below until such issued by a Clearing Member/Group, typically engage in lending of their own positions are closed out through the which are adversely correlated with the equity securities and borrowers normal course stock loan termination credit quality of that Clearing Member typically do not accept equity securities process. Group. These ETNs are generally 14 equivalent to unsecured senior debt issued by their lending counterparty. 2. SWWR Add-on The proposed restrictions on lending issued by the Clearing Member/Group. SWWR ETN positions would, however, OCC proposes to adopt a new margin While a Clearing Member default can be impact a very small segment of Clearing add-on (i.e., the SWWR Add-on) to triggered by its failure to meet other Members that lend SWWR ETNs.15 OCC address SWWR from cleared positions obligations, the firm may or may not believes that the impact of the proposed involving Clearing Member and affiliate default on its ETNs. Hence, the recovery changes would be limited by the fact issued equities and ETNs. The SWWR rate for ETNs is uncertain and could be that, unlike listed options, Clearing Add-on would be calculated for each between 0% and 100%. To address SWWR presented by ETNs Members are able to lend SWWR margin tier account of a Clearing issued by a Clearing Member/Group, positions on an uncleared basis outside Member Group having positions related to either publicly traded equities or OCC proposes to calculate an SWWR of OCC. The proposed restrictions on ETNs issued by the Clearing Member ETN Charge as part of the SWWR Add- lending activity in the Stock Loan Group and would cover all types of on. OCC notes that, unlike SWWR Programs would not prevent Clearing positions (equity used as collateral, Equity positions, for which it is Members from lending equities or ETNs equity and ETN options, single-stock assumed that the price of any equity issued by the Clearing Member or any futures). The proposed SWWR Add-on security issued by the Clearing Member affiliate of such Clearing Member on a is comprised of three main components: Group would fall to zero, the recovery bilateral basis if members wish to do so. (1) ‘‘SWWR Equity Charge,’’ (2) ‘‘SWWR rate for ETNs would not necessarily fall The proposed prohibition on lending ETN Charge,’’ and (3) ‘‘SWWR to zero. As a result, the proposed SWWR Clearing Member or Member Affiliate- Residual.’’ Each of these components is ETN Charge would utilize an industry issued Eligible Stock would be included discussed below. standard recovery rate assumption in new OCC Rules 2202(f) and 2202A(f) designed to reflect the credit risk for the Stock Loan/Hedge Program and a. SWWR Equity Charge associated with such ETN positions.18 Market Loan Program, respectively. OCC Under the proposal, when a Clearing OCC would also adopt additional stress would also make conforming changes to Member defaults, it is assumed that the test scenarios to monitor and measure its Margin Policy and Margins price of any equity security issued by SWWR ETN position exposures and Methodology to reflect the newly the Clearing Member Group would fall allow for OCC to call for additional proposed restrictions in stock lending to zero. As a result, OCC would financial resources from its Clearing activity. calculate the SWWR Equity Charge by Members when certain thresholds are assuming that a Clearing Member’s and breached. These SWWR stress test 14 As of the start of September 2019, OCC had 107 its affiliates’ equity securities would be scenarios are discussed in further detail Clearing Members, of which 64 have member or priced at zero and value all cleared affiliate-issued securities eligible for lending in the below. Stock Loan Programs. OCC analyzed SWWR Equity positions accordingly (i.e., all stocks, lending activity for its Clearing Members from single stock futures, call options, and c. SWWR Residual January 2018 through the beginning of September put options would be valued at zero) to To ensure that OCC appropriately 2019. During this period, less than 10 Clearing provide full protection for the risk of calculates margins to capture SWWR Members had stock lending activity in SWWR Equity positions, and loans of SWWR Equity potential market exposure to products positions constituted less than three percent of each on a Clearing Member Group’s own proposes to revise its Methodology Description to of those Clearing Members’ average notional stock equity in a default or bankruptcy reflect the exclusion of SWWR Equity positions lending activity for the period. scenario. In each margin account, the from the synthetic accounts used in OCC’s stress 15 testing. OCC analyzed SWWR ETN lending activity for profit and loss (‘‘P&L’’) of SWWR Equity its Clearing Members from January 2018 through 17 For example, suppose the P&L from the SWWR the beginning of September 2019. Only 11 of OCC’s positions would be calculated as the equity price going to 0 for all SWWR equity-related 107 Clearing Members have member or affiliate difference of the theoretical value of positions were a loss of $1 million. The SWWR issued ETNs. During this period, less than 10 such securities (i.e., zero) and the Equity Charge in this case would be $1 million. If Clearing Members had stock lending activity for the P&L were a gain of $1 million, the SWWR closing price of the position multiplied Equity Charge would be $0. SWWR ETN positions. For the majority of these 16 Clearing Members, lending in SWWR ETN positions by the net quantity. Moreover, any 18 ETNs issued by a Clearing Member Group constituted approximately 13 percent or less of each would still be stressed in OCC’s Clearing Fund as of those Clearing Members’ average notional stock 16 Because SWWR of equity-related positions only a part of the credit risk is covered by the lending activity for the period. For Clearing would be fully covered as part of margins, these SWWR ETN Charge. Additionally, any credit from Members that averaged higher notational lending positions would be removed from Clearing Fund margin assets would be adjusted by the direct activity, OCC has observed significant reductions in shortfall calculations under OCC’s stress testing and charges related to the risk of the equity and ETNs this activity over recent months. Clearing Fund methodology. Accordingly, OCC issued by each Clearing Member Group.

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Equity and SWWR ETN position 3. Enhancements to Sufficiency Stress would allow OCC to call for additional exposures, OCC proposes to include an Test Scenarios for ETNs financial resources when SWWR ETN SWWR Residual component in SWWR OCC proposes to revise its CFM position exposures exceed certain Add-on. Under the proposal, OCC Policy and Methodology Description to thresholds of OCC’s Clearing Fund. As would continue to calculate base introduce new stress test scenarios a result of these proposed STANS margin requirements for designed to capture SWWR exposures enhancements, OCC believes it would Clearing Members with SWWR for Clearing Member-issued ETNs that have sufficient financial resources to positions including SWWR Equity and are not accounted for in the SWWR ETN cover the SWWR associated with SWWR ETN positions under its current Charge and that exceed certain SWWR ETN positions if such positions methodology (i.e., without assuming thresholds of OCC’s Clearing Fund were to be liquidated for less than the that all SWWR Equity positions fall to (‘‘SWWR Sufficiency Scenarios’’).22 assumed recovery rate. a value of zero and without assuming all Under the proposal, certain Sufficiency OCC notes that, under its current CFM SWWR ETN positions are valued at the Scenarios 23 would be evaluated with Policy, in the event results of a daily recovery rate times their current Clearing Member-issued ETNs declining Sufficiency Stress Test over the final 19 price). OCC would then also calculate to zero within the respective Clearing five business days preceding the a residual STANS margin with the Member’s accounts. Such scenarios monthly Clearing Fund sizing exceed SWWR Equity and SWWR ETN would include, but would not be 90% of the projected Clearing Fund size positions removed since for SWWR limited to, the 1987 ‘‘Black Monday’’ for the upcoming month, the Clearing their P&L would be captured through market event on a Cover 1 basis and the Fund size is set such that the peak the SWWR Equity and SWWR ETN two most extreme moves from the 2008 Sufficiency Stress Test draw is no Charges. The SWWR Residual would historical market event on a Cover 2 greater than 90% of the Clearing Fund then be the difference between the basis. size. OCC proposes to revise the CFM residual margin and the base margin. If SWWR Sufficiency Scenarios would Policy to provide that OCC generally the sum of the SWWR Equity Charge, value Clearing Member-issued ETNs at does not intend to mutualize exposures SWWR ETN Charge and SWWR a price of zero within their own resulting from the proposed SWWR Residual would result in a net credit to accounts capturing impacts to any Sufficiency Scenarios and therefore the Clearing Member,20 then the SWWR cleared positions tied to those ETNs. SWWR Sufficiency Scenarios would not Residual would be adjusted to ensure Calls, equities, and single-stock futures be included for purposes of this anti- that OCC always uses a more would all be valued at zero and puts procyclicality measure. The proposed conservative measure that captures the would be valued at their strike price. change is generally aligned with OCC’s greater of either the base STANS margin For these scenarios, margin assets for intention to appropriately charge or the residual STANS margin plus the shortfall calculations would not be individual Clearing Members based on SWWR Equity and SWWR ETN adjusted by the SWWR ETN Charge. In the SWWR they bring to OCC. 21 Charges. addition, other scenarios may be created 4. Other Clarifying and Conforming that embed the SWWR Equity risk by Changes to CFM Policy and 19 STANS margin requirements are comprised of not excluding positions related to the the sum of several components, each reflecting a Methodology Description Clearing Member Group’s own equity different aspect of risk. The base component of the In addition to the proposed changes STANS margin requirement for each account is but using an equity price of zero to obtained using a risk measure known as 99% described above, OCC would revise the value all related products. CFM Policy and Methodology Expected Shortfall. The Expected Shortfall In the event an SWWR Sufficiency component is established as the estimated average Description to provide that, with respect Scenario identifies exposures that of potential losses higher than the 99% value at risk to stress test portfolio construction, exceed 75% of the current Clearing threshold. The term ‘‘value at risk’’ or ‘‘VaR’’ refers SWWR single-name equity positions to a statistical technique that, generally speaking, is Fund requirement less deficits, OCC would be removed from stress test used in risk management to measure the potential may require additional margin deposits risk of loss for a given set of assets over a particular portfolios as they are fully collateralized from the Clearing Member Group(s) time horizon. This base component is then adjusted in margins. Additionally, the by the addition of a stress test component, which driving the breach. If an SWWR is obtained from consideration of the increases in Methodology Description would be Sufficiency Stress Scenario identifies revised to provide that when adding 99% Expected Shortfall that would arise from exposures that exceed 90% of the market movements that are especially large and/or STANS margin asset amounts to in which various kinds of risk factors exhibit current Clearing Fund, OCC would scenario gains and losses, the SWWR perfect or zero correlations in place of their perform an intra-month resizing of the Equity Charge, SWWR ETN Charge, and correlations estimated from historical data Clearing Fund. The proposed change (‘‘Dependence Add-on’’), or from extreme adverse certain other Add-ons from STANS idiosyncratic movements in individual risk factors would enable OCC to more accurately margin asset amounts are excluded. to which the account is particularly exposed measure its credit risks as they relate to Finally, OCC would revise its (‘‘Concentration Add-on’’). SWWR and better test the sufficiency of 20 Methodology Description to clarify that For example, where a customer of a Clearing its overall financial resources and 24 Member has net short positions referencing that for Idiosyncratic Scenarios, the four Clearing Member’s issued equities, such positions riskiest names used to calculate ¥ may actually present so-called ‘‘right-way risk’’ negative than $1 million, then the SWWR idiosyncratic stress test exposures Residual would be +$1 million; if the SWWR Equity whereby the position would result in a gain or would exclude any equity issued by the margin credit for that account as the credit quality Charge was $0, then SWWR Residual would be $0; of the Clearing Member deteriorates. and if SWWR Equity Charge was between $0 and Clearing Member’s own firms and make ¥ ¥ 21 For example, suppose that there are no SWWR $1 million (e.g., $0.4 million), then SWWR ETN positions and the Expected Shortfall of a Residual would be positive and the opposite value 24 OCC has proposed in separate proposed rule portfolio including all positions was a $10 million of SWWR Equity Charge (e.g., +$0.4 million). Thus, change and advance notice filings to adopt a new loss and the Expected Shortfall with the SWWR the sum of the SWWR Equity Charge, SWWR ETN set of stress scenarios to be used in the monthly Equity-related positions removed was a greater loss Charge, and SWWR Residual cannot be positive. sizing of OCC’s Clearing Fund that are designed to of $11 million. In this case, the SWWR Residual 22 OCC notes that it may also develop additional capture the risks of extreme moves in individual or would be ¥$1 million. If the Expected Shortfall Informational Scenarios to monitor SWWR; small subsets of securities (‘‘Idiosyncratic with the SWWR Equity-related positions removed however, these Informational Scenarios would not Scenarios’’). These Idiosyncratic Scenarios would was reduced to a loss of $9 million then the SWWR be used to call for additional financial resources consider the four single-name securities with the Residual would depend on the SWWR Equity from Clearing Members. worst P&L in a Clearing Member’s portfolio. See Charge: If the SWWR Equity Charge was more 23 See supra note 11. supra note 5.

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other clarifying, non-substantive and introducing the proposed SWWR can continue to provide prompt and changes to the Methodology Description Add-on charge would enhance OCC’s accurate clearance and settlement of concerning stress testing price shocks ability to manage the credit risks securities and derivatives transactions, for products with multiple risk factors presented by its Clearing Members’ assure the safeguarding of securities and and Idiosyncratic Scenarios that are SWWR positions and would reduce the funds which are in its custody or unrelated to the proposal described risk that OCC’s financial resources control or for which it is responsible, herein. would be insufficient in the event of a and, in general, protect investors and Clearing Member default. As a result, the public interest consistent with Clearing Member Outreach the proposed change is designed, in Section 17A(b)(3)(F) of the Act.32 To inform Clearing Members of the general, to enhance OCC’s framework Consistency With Rule 17Ad–22 Under proposed changes, OCC has provided an for measuring and managing its credit the Exchange Act overview of the proposed changes to the risks so that it can continue to provide Financial Risk Advisory Council prompt and accurate clearance and Rule 17Ad–22(b)(2) 33 requires a (‘‘FRAC’’), a working group comprised settlement of securities and derivatives registered clearing agency that performs of exchanges, Clearing Members and transactions, assure the safeguarding of CCP services to establish, implement, indirect participants of OCC. OCC has securities and funds which are in its maintain and enforce written policies also performed direct outreach to custody or control or for which it is and procedures reasonably designed to, Clearing Members that would be most responsible, and, in general, protect in part, use margin requirements to limit impacted by the proposed changes. To- investors and the public interest its credit exposures to participants date, OCC has not received any material consistent with Section 17A(b)(3)(F) of under normal market conditions and objections or concerns in response to the Act.30 use risk-based models and parameters to this outreach. In addition, OCC believes that set such margin requirements. In addition, Rules 17Ad–22(e)(6)(i) and Implementation Timing introducing new SWWR Sufficiency Scenarios designed to capture SWWR (v) 34 require a covered clearing agency OCC expects to implement the exposures for Clearing Member-issued that provides CCP services to establish, proposed changes within sixty (60) days ETNs that are not accounted for in the implement, maintain and enforce after the date that OCC receives all SWWR ETN Charge would provide OCC written policies and procedures necessary regulatory approvals for the with a more comprehensive approach to reasonably designed to cover its credit proposed changes. OCC will announce managing OCC’s credit risks as they exposures to its participants by the implementation date of the relate to SWWR ETN positions. The establishing a risk-based margin system proposed change by an Information proposed change would enable OCC to that, at a minimum: (1) Considers and Memorandum posted to its public more accurately measure its credit risks produces margin levels commensurate website at least two (2) weeks prior to and better test the sufficiency of its with the risks and particular attributes implementation. overall financial resources and would of each relevant product, portfolio, and (1) Statutory Basis allow OCC to call for additional market, and (2) uses an appropriate financial resources when those method for measuring credit exposure OCC believes the proposed rule exposures exceed certain thresholds of that accounts for relevant product risk change is consistent with requirements OCC’s Clearing Fund. The proposed rule factors and portfolio effects across of the Act and rules and regulations change is therefore designed to enhance products. thereunder applicable to registered OCC’s overall framework for measuring The proposed changes to OCC’s clearing agencies. Specifically, OCC and managing its credit risks and would margin and Clearing Fund policies and believes the proposed rule change is reduce the risk that OCC’s financial methodologies to adopt the SWWR Add- consistent with Section 17A(b)(3)(F) of resources would be insufficient in the on would utilize a risk-based model the Act 25 and Rule 17Ad–22(b)(2),26 event of a Clearing Member default. For designed to limit OCC’s credit Rule 17Ad–22(e)(4),27 and Rule 17Ad– these reasons, OCC believes the exposures to Clearing Members that 22(e)(6) 28 thereunder, as described in proposed change is designed to promote present SWWR exposure to OCC further detail below. the prompt and accurate clearance and through the clearing of Clearing Consistency With the Section settlement of securities and derivatives Member-issued equity and ETN 17A(b)(3)(F) of the Exchange Act transactions, to assure the safeguarding positions. OCC believes the proposed Section 17A(b)(3)(F) of the Act 29 of securities and funds in the custody or SWWR Add-on is reasonably designed requires, among other things, that the control of the clearing agency or for to produce margin levels commensurate rules of a clearing agency be designed to which it is responsible, and, in general, with the risks and particular attributes promote the prompt and accurate to protect investors and the public SWWR Equity and ETN positions and clearance and settlement of securities interest in accordance with Section would use an appropriate method for 31 and derivatives transactions, to assure 17A(b)(3)(F) of the Act. measuring credit exposure that accounts the safeguarding of securities and funds OCC also proposes a number of other for relevant product risk factors such as which are in its custody or control or for clarifying and conforming changes to its SWWR. which it is responsible, and, in general, CFM Policy and Methodology The proposed SWWR Add-on would to protect investors and the public Description required to implement the include both an SWWR Equity Charge interest. OCC believes that prohibiting proposed SWWR Add-on and SWWR and SWWR ETN Charge to address the Clearing Members from lending their Sufficiency Scenarios described herein SWWR attributes and exposures own or Member Affiliate-issued and to more clearly describe OCC’s presented to OCC by each type of securities in the Stock Loan Programs stress testing practices. OCC believes product. For example, the SWWR that these changes would enhance Equity Charge assumes that when a 25 15 U.S.C. 78q–1(b)(3)(F). OCC’s overall framework for measuring Clearing Member defaults the price of 26 17 CFR 240.17Ad–22(b)(2). and managing its credit risks so that it 27 17 CFR 240.17Ad–22(e)(4). 32 Id. 28 17 CFR 240.17Ad–22(e)(6). 30 Id. 33 17 CFR 240.17Ad–22(b)(2). 29 15 U.S.C. 78q–1(b)(3)(F). 31 Id. 34 17 CFR 240.17Ad–22(e)(6)(i) and (v).

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any equity security issued by the establish, implement, maintain and and is therefore consistent with Rule Clearing Member Group would fall to enforce written policies and procedures 17Ad–22(e)(4).39 zero. As a result, OCC would calculate reasonably designed to effectively For the reasons set forth above, OCC the SWWR Equity Charge by assuming identify, measure, monitor, and manage believes the proposed rule change is that a Clearing Member’s and its its credit exposures to participants and consistent with Section 17A(b)(3)(F) of affiliates’ equity securities would be those arising from its payment, clearing, the Act 40 and the rules promulgated priced at zero and value all cleared and settlement processes, including by: thereunder. positions accordingly to provide full (1) Maintaining additional financial B. Clearing Agency’s Statement on protection for the risk of potential resources at the minimum to enable it Burden on Competition market exposure to products on a to cover a wide range of foreseeable Section 17A(b)(3)(I) of the Act 41 Clearing Member Group’s own equity in stress scenarios that include, but are not requires that the rules of a clearing a default or bankruptcy scenario. limited to, the default of the participant Moreover, the SWWR Add-on charge agency not impose any burden on family that would potentially cause the competition not necessary or would include an SWWR Residual largest aggregate credit exposure for the component to ensure that OCC takes the appropriate in furtherance of the covered clearing agency in extreme but purposes of the Act. OCC notes that more conservative of the base STANS plausible market conditions and (2) margin requirement or margin while the proposed SWWR Add-on and testing the sufficiency of its total requirements including the SWWR SWWR Sufficiency Scenario margin financial resources available to meet Equity Charge (particularly in charges may impact or impose a burden these minimum financial resource circumstances where using the SWWR on competition for those Clearing Equity Charge would result in a net requirements. OCC believes that Members with SWWR exposures in credit to the Clearing Member). introducing new SWWR Sufficiency their cleared positions when compared In addition, OCC would adopt an Scenarios designed to capture SWWR to Clearing Members without SWWR SWWR ETN Charge to address the exposures for Clearing Member-issued positions, any burden on competition SWWR presented by Clearing Member- ETNs that are not accounted for in the would be necessary or appropriate in issued ETNs. ETNs have different SWWR ETN Charge would enable OCC furtherance of the purposes of the Act. characteristics than equity securities to more accurately measure its credit The proposed margin charges would be and more closely reflect those risks and better test the sufficiency of its imposed on all Clearing Members that characteristics of other unsecured debt overall financial resources, particularly bring SWWR exposure to OCC on an obligations. For example, if a Clearing in stressed marked conditions. The individualized basis in an amount Member defaults that does not proposed change would also allow OCC reasonably calculated to mitigate the necessarily imply that it will to call for additional financial resources risks posed to OCC by such Clearing automatically default on its ETNs. when those exposures exceed certain Members’ SWWR positions. The Therefore, ETNs are not necessarily thresholds of OCC’s Clearing Fund. The proposed rule change is necessary for valued at 0 and in fact may retain 100% proposed rule change is therefore OCC to limit its credit exposures posed of their value and be exposed to normal designed to enhance OCC’s overall by these securities. Moreover, OCC market risk. OCC proposes to measure framework for measuring and managing believes that the proposed rule change the risk of these positions using an its credit risks and would reduce the would appropriately charge individual industry standard recovery rate risk that OCC’s financial resources Clearing Members based on the SWWR assumption designed to calculate a would be insufficient in the event of a they bring to OCC. The Clearing margin charge that reflects the expected Clearing Member default consistent Members most likely to be impacted by credit risk associated with such ETN with Rules 17Ad–22(e)(4)(iii) and (vi).37 the proposed changes primarily consist of larger Clearing Members or Clearing positions. The potential market risk of Rule 17Ad–22(e)(4) 38 generally Members that are affiliated with, larger the ETNs would still be covered by requires that a covered clearing agency including ETNs in regular margin holding companies, banks, and financial establish, implement, maintain and services firms that issue publicly traded calculations, whereas the SWWR Equity enforce written policies and procedures positions are assumed to be heading equity or issued ETNs. OCC notes, reasonably designed to effectively however, that the proposed changes towards bankruptcy and necessarily identify, measure, monitor, and manage valued near 0 in a default situation. could impact any Clearing Member that its credit exposures to participants and has publicly traded equity or issued For these reasons, OCC believes the those arising from its payment, clearing, proposed SWWR Add-on would ETNs and that clears positions in such and settlement processes. By prohibiting securities through OCC, regardless of enhance OCC’s margin system by Clearing Members from lending Eligible providing for a risk-based model that: the respective size of that member. The Stock issued by the Clearing Member or (1) Sets margin requirements designed proposed rule change would enable any affiliate of such Clearing Member, to limit OCC’s SWWR exposures to its OCC to calculate and collect margin that OCC would mitigate the SWWR that participant; (2) considers and produces more accurately reflects the risk currently exists in its Stock Loan margin levels commensurate with the characteristics of these securities and to Programs and thereby reduce the risk risks and particular attributes SWWR help limit potential losses from defaults that OCC’s financial resources would be positions cleared by OCC; and (3) uses by Clearing Members with SWWR insufficient in the event such a Clearing an appropriate method for measuring exposures. In this way, OCC believes the Member would default. OCC believes such SWWR exposures consistent with proposed change would promote the the proposed change is therefore the requirements of Rules 17Ad– prompt and accurate clearance and reasonably designed to help OCC 22(b)(2), (e)(6)(i) and (e)(6)(v).35 settlement of securities transactions and Rules 17Ad–22(e)(4)(iii) and (vi) 36 manage the credit risks associated with protect investors and the public interest. require that a covered clearing agency SWWR Equity and SWWR ETN As such, OCC believes any burden on positions in the Stock Loan Programs 35 17 CFR 240.17Ad–22(b)(2), (e)(6)(i), and 39 Id. (e)(6)(v). 37 Id. 40 15 U.S.C. 78q–1(b)(3)(F) 36 17 CFR 240.17Ad–22(e)(4)(iii) and (vi). 38 17 CFR 240.17Ad–22(e)(4). 41 15 U.S.C. 78q–1(b)(3)(I).

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competition imposed by the new SWWR Programs only constitute a portion of Electronic Comments Add-on and SWWR Sufficiency Stress the overall securities lending markets • Test margin charges would be necessary and therefore Clearing Members would Use the Commission’s internet and appropriate in furtherance of the still be able to lend these securities on comment form (http://www.sec.gov/ Act and would therefore be consistent an uncleared basis outside of OCC. As rules/sro.shtml); or with Section 17A(b)(3)(I) of the Act.42 a result, the proposed restrictions on • Send an email to rule-comments@ OCC also proposes to mitigate SWWR lending activity in the Stock Loan sec.gov. Please include File Number SR– in its Stock Loan Programs by Programs would not prevent Clearing OCC–2019–010 on the subject line. prohibiting Clearing Members from Members from lending those securities Paper Comments lending any Eligible Stock issued by on a bilateral basis if they choose to do such Clearing Member or any affiliate of so, thereby limiting the potential • Send paper comments in triplicate such Clearing Member. As discussed competitive impact or burden of the to Secretary, Securities and Exchange above, OCC does not believe that the proposed rule change. OCC believes the Commission, 100 F Street NE, proposed restriction on lending SWWR proposed change would enhance OCC’s Washington, DC 20549–1090. Equity positions would have a material ability to manage the credit risks All submissions should refer to File impact on Clearing Members in the presented by SWWR positions in the Number SR–OCC–2019–010. This file Stock Loan Programs. The vast majority Stock Loan Programs and would reduce number should be included on the of OCC’s Clearing Members do not lend the risk that OCC’s financial resources subject line if email is used. To help the their own or affiliate-issued equity would be insufficient in the event of a Commission process and review your securities in the Stock Loan Programs, Clearing Member default, thereby comments more efficiently, please use and to the extent Clearing Members do promoting the prompt and accurate only one method. The Commission will engage in such activity, it is minimal clearance and settlement of securities post all comments on the Commission’s when compared to their overall stock transactions and the protection of internet website (http://www.sec.gov/ lending activity.43 The proposed investors and the public interest. As rules/sro.shtml). Copies of the restrictions on lending SWWR ETN such, OCC believes any burden on positions would, however, impact a submission, all subsequent competition imposed by the proposed amendments, all written statements very small segment of Clearing Members restrictions would be necessary and 44 with respect to the proposed rule that lend SWWR ETNs. OCC believes appropriate in furtherance of the Act that it is necessary and appropriate to change that are filed with the and would therefore be consistent with Commission, and all written mitigate the SWWR associated with this Section 17A(b)(3)(I) of the Act.45 stock lending activity by restricting communications relating to the Clearing Members from lending any C. Clearing Agency’s Statement on proposed rule change between the Eligible Stock issued by such Clearing Comments on the Proposed Rule Commission and any person, other than Member or any affiliate of such Clearing Change Received From Members, those that may be withheld from the Member. OCC believes restricting the Participants or Others public in accordance with the provisions of 5 U.S.C. 552, will be lending of SWWR positions is the most Written comments on the proposed prudent way to manage SWWR in the available for website viewing and rule change were not and are not printing in the Commission’s Public Stock Loan Programs because it is the intended to be solicited with respect to simplest and most effective way to Reference Room, 100 F Street NE, the proposed rule change and none have Washington, DC 20549, on official mitigate this risk from an operational been received. and default management perspective. By business days between the hours of restricting lending activity for SWWR III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of such positions, large changes in margin Proposed Rule Change and Timing for filing also will be available for requirements associated with the Commission Action inspection and copying at the principal initiation of these types of positions Within 45 days of the date of office of OCC and on OCC’s website at would be avoided. The proposed change publication of this notice in the Federal https://www.theocc.com/about/ would also simplify the potential Register or within such longer period publications/bylaws.jsp. closeout activities associated with a up to 90 days (i) as the Commission may All comments received will be posted default. Moreover, OCC believes the designate if it finds such longer period without change. Persons submitting proposed limitation on lending SWWR to be appropriate and publishes its comments are cautioned that we do not positions is the most effective way to reasons for so finding or (ii) as to which redact or edit personal identifying address the potential liquidity demands the self-regulatory organization information from comment submissions. driven by the lending of SWWR consents, the Commission will: You should submit only information positions, the costs of which are borne (A) By order approve or disapprove that you wish to make available by all of OCC’s Clearing Members and the proposed rule change, or publicly. not just those members lending SWWR (B) institute proceedings to determine All submissions should refer to File positions. OCC also believes that the whether the proposed rule change Number SR–OCC–2019–010 and should high rate of collateralization of these should be disapproved. be submitted on or before November 19, positions that would otherwise be IV. Solicitation of Comments 2019. imposed through the newly proposed For the Commission, by the Division of SWWR charges would create an Interested persons are invited to submit written data, views and Trading and Markets, pursuant to delegated incentive for members to not use the authority.46 arguments concerning the foregoing, OCC Stock Loan Programs for these Jill M. Petersen, transactions. OCC further notes that, including whether the proposed rule Assistant Secretary. unlike listed options, OCC’s Stock Loan change is consistent with the Exchange Act. Comments may be submitted by [FR Doc. 2019–23551 Filed 10–28–19; 8:45 am] 42 Id. any of the following methods: BILLING CODE 8011–01–P 43 See supra note 14 and associated text. 44 See supra note 15 and associated text. 45 Id. 46 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE and Settlement Supervision Act of 2010 As described in more detail below, COMMISSION (‘‘Clearing Supervision Act’’) 5 to the purpose of the RP is to maintain the establish enhanced standards for the continuity of critical services in times of [Release No. 34–87388; File No. SR–LCH SA–2019–008] operation and governance of those extreme stress and to facilitate the clearing agencies registered with the recovery of LCH SA agency. Among Self-Regulatory Organizations; LCH Commission that meet the definition of other things, the RP seeks to: (i) Identify SA; Notice of Filing of a Proposed Rule a ‘‘covered clearing agency,’’ as defined if and to what level LCH SA’s service Change Relating to the Updated 2018 by Rule 17Ad–22(a)(5) 6 (collectively, are critical for the market and what Version of the Recovery Plan the new and amended rules are herein internal or external services/systems are referred to as ‘‘CCA rules’’). critical for the continuity of LCH SA’s October 23, 2019. LCH SA is a covered clearing agency activity; (ii) outline the scenario under Pursuant to Section 19(b)(1) of the under the CCA rules and therefore is which recovery of the LCH SA might be Securities Exchange Act of 1934 subject to the requirements of the CCA necessary; (iii) define the early warning (‘‘Act’’) 1 and Rule 19b–4 thereunder 2 rules, including Rule 17Ad–22(e)(3). indicators and triggers for initiating the notice is hereby given that on October The CCA rules require that covered recovery measures under the RP, 8, 2019, Banque Centrale de clearing agencies, among other things, including the market conditions or Compensation, which conducts ‘‘establish, implement, maintain and events that could trigger it; (iv) define business under the name LCH SA (‘‘LCH enforce written policies and procedures the governance framework to trigger SA’’), filed with the Securities and reasonably designed to . . . maintain a these recovery measures; (v) identify the Exchange Commission (‘‘Commission’’) sound risk management framework for available recovery tools to manage crisis the proposed rule change described in comprehensively managing legal, credit, situations and to restore business as Items I, II and III below, which Items liquidity, operational, general business, usual; and (vi) perform a quantitative have been prepared primarily by LCH investment, custody, and other risks and qualitative assessment if the recover SA. The Commission is publishing this that arise in or are borne by the covered tools meet the CPMI IOSCO criteria for notice to solicit comments on the clearing agency, which . . . includes recovery instruments. proposed rule change from interested plans for the recovery and orderly wind- The RP also includes a detailed persons. down of the covered clearing agency summary of the overall business and necessitated by credit losses, liquidity I. Clearing Agency’s Statement of the regulatory framework that LCH SA shortfalls, losses from general business Terms of Substance of the Proposed operates in, including identification of risk, or any other losses’’.7 As a central Rule Change applicable regulations, company counterparty recognized under the structure, detail regarding the LCH SA LCH SA is proposing to adopt an European Market Infrastructure business lines and geographical spread, updated recovery plan (the ‘‘RP’’) in 8 Regulation (‘‘EMIR’’), LCH SA is also and information regarding the accordance with Rule 17Ad–22(e)(3)(ii). subject to prudential requirements, as interaction between LCH SA and its The text of the proposed rule change has well as requirements regarding its parent entity (the ‘‘Parent’’). been annexed as Exhibit 5. LCH SA has operations and oversight. As a credit The RP also contains an FMI analysis, requested confidential treatment of the institution based in the European which analyses LCH SA relationship material submitted as Exhibit 5. Union, LCH SA is also subject to with other financial market II. Clearing Agency’s Statement of the Directive 2014/59/EU, as supplemented, infrastructure (e.g. settlement platforms, requiring institutions to draw up and Purpose of, and Statutory Basis for, the trade repositories, etc) and institutions maintain recovery plans setting forth Proposed Rule Change used by LCH SA or its clearing members options for measures to be taken by the such a payment and settlement agents. In its filing with the Commission, institution to restore its financial The RP covers all scenarios, which LCH SA included statements concerning position following a significant may potentially prevent LCH SA from the purpose of and basis for the deterioration of its financial position. proposed rule change and discussed any Specific guidance has been given on providing its critical services: comments it received on the proposed Recovery for CCP by CPMI IOSCO. —The default of one or multiple rule change. The text of these statements Within the CPMI IOSCO principles for Clearing Member(s) on one or several may be examined at the places specified financial market infrastructures (PFMI) of its markets, where LCH SA has to in Item IV below. LCH SA has prepared it is outlined that all systemically re-establish the matched book and summaries, set forth in sections A, B, important FMIs should have a may have allocate any uncovered and C below, of the most significant comprehensive and effective recovery credit losses to its own capital or to aspects of these statements. plan. For this purpose, it has issued the surviving clearing members. —Potential and actual liquidity A. Clearing Agency’s Statement of the report ‘‘recovery of financial market infrastructures’’ containing guidance on shortfalls as result of a clearing Purpose of, and Statutory Basis for, the member or allied clearing house Proposed Rule Change recovery plans, content of a recovery plan in October 2014 and a guidance default. 1. Purpose relating resilience and recovery in 2017. —The default of an investment On September 28, 2016, the Securities Furthermore, regulations are under counterparty of LCH SA or any other and Exchange Commission (the preparation on a European level investment losses resulting from ‘‘Commission’’) adopted amendments to outlining the Recovery and Resolution changes in the market value on the Rule 17Ad–22 3 pursuant to Section 17A measures for CCPs. investments. of the Securities Exchange Act of 1934 —A loss resulting from an operational 5 (the ‘‘Act’’) 4 and the Payment, Clearing 12 U.S.C. 5461 et seq. risk event or any other event which 6 17 CFR 240.17Ad–22(a)(5). impacts the critical services provided 7 17 CFR 240.17Ad–22(e)(3)(ii). 1 by LCH SA and particularly legal and 15 U.S.C. 78s(b)(1). 8 Regulation (EU) No 648/2012 of the European 2 17 CFR 240.19b–4. Parliament and of the Council of 4 July 2012 on operational risk (including Fraud) 3 17 CFR 240.17Ad–22. OTC derivatives, central counterparties and trade which finally would erode LCH SA’s 4 15 U.S.C. 78q. repositories. capital.

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—Failure of a critical IT service provides that an assessment has been LCH Ltd. This is managed under provider. A special focus has been done in accordance with guidance by relevant services agreement between made on LCH Ltd as a provider of the Financial Stability Board (‘‘FSB’’) on LCH Ltd and LCH SA so that LCH SA critical services to LCH SA given the identification of critical functions and can continue to offer its services in case fact that LCH Ltd is also a CCP and shared services. LCH SA has assessed of a potential failure. part of the same group. that the clearing services LCH SA 2. Identification of Possible Stress and —Poor business performance or loss of provides to participants with respect to Recovery Scenarios critical contracts with Exchanges. the markets identified in the RP are —Operational or financial failure of an deemed critical for purposes of the RP. The RP categorizes potential stress FMI (e.g. allied clearing house/(I) Overall the services provided in respect scenarios in two ways as a result of CSD/Trades Repository). of all markets are critical because: (1) either: (i) Clearing member defaults and The updated 2018 version of the RP The volume of the activity on certain (ii) non-clearing member events. includes the following main markets may be very significant, (2) Clearing member defaults are identified improvements: most of the business on the relevant as those losses that threaten LCH SA’s market is cleared through LCH SA or (3) —CC&G Rulebook changes: ability to operate as a going concern the suspension of the clearing service Consultation with clearing members through either uncovered credit losses could impact materially the functioning and National Competent Authorities or liquidity shortfalls created as a result of the market; the level of global market have been completed and LCH SA has of a default by one or more members. share with respect to certain products is implemented the rules relating to Non-clearing member defaults are high; and LCH SA’s service are used by defined as losses impacting capital CC&G service closure during 2018. significant clearing firms. Moreover, a This has resolved a potential liquidity adequacy arising from risks, including, transfer of the clearing activity to without limitation, general business risk relating to a CC&G default. another CCP is technically and —Critical service providers: LCH SA has risks, operational events, custody and organizationally complex to perform on investment risks, or risks on the implemented a new framework to short notice. manage critical service providers, this interoperability link. The RP also identifies those shared The RP then identifies, prior to framework has been approved in the operations which LCH SA depends on LCH SA Board and a new list of implementing any of the recovery to perform critical services to members, strategies described therein, the day-to- critical service providers has been put including those critical departments and together which is part of this RP. day risk measures in place to assure services and systems within its provision of the critical services —Cyber scenario: The RP includes now corporate group and those provided by more details on the management of a performed where these are insufficient others. The RP identifies the main the recovery plan will be triggered. cyber-scenario and the Cyber Crisis operating units within LCH SA that play With respect to clearing member Management Plan has been added as a critical role in providing services as defaults, the LCH SA risk framework a new recovery tool. The purpose of well as those enterprise systems that are provides mitigations for uncovered this document is to provide a critical for LCH SA’s ongoing framework of procedures allowing operations. Such systems are credit losses due to a member default. LCH SA to respond to cyber incidents categorized as (i) Tier 1 Enterprise LCH SA follows high standards to assess in case of cyber crisis. As such, the Critical (which is the most important financial resources against member process defined is to be activated in category and where a failure may have portfolios, including initial margin case of detection of a cyber incident direct impact on the continued model covering the potential loss from that could potentially cause a functioning of LCH SA); (ii) Tier 2 any member default to a 99.7% significant impact on LCH SA Business Critical (which is a category of confidence level over the applicable business objectives. systems where business may not be able holding period, margin add-ons to deal —Capital related recovery tools: The to proceed as usual in the event of a with specific member portfolios risks quantitative assessment section of the failure); and (iii) Tier 3 Business such as concentration, liquidity risk and recovery plan now includes more Support (which are non-critical sovereign risk, and default fund sizing details on the monitoring of capital systems). In addition, the RP identifies to cover simultaneous default of the 2 related recovery tools like surplus those services provided by its affiliates members having the largest stress capital, variable payments and (including its Parent) and third-party testing losses beyond the 99.7% dividend payments. service providers through a confidence level. Stress tests are applied —Recovery tools for non-Euro comprehensive framework that are by LCH SA in order to assess whether transactions and collateral: LCH SA essential to LCH SA’s operations as well financial resources are calibrated to has to its disposal GMRA’s to raise as the agreements governing such handle systemic risks. In addition, a liquidity on USD and GBP, access to relationships. reverse stress resting procedure is used FX markets and can perform The RP describes that LCH SA to ascertain adequacy of financial payments in alternative currency maintains comprehensive exit resources held against member (EUR) as a last resort. management plans should LCH Ltd positions. The stress testing framework —LCH Ltd exit plan: LCH Ltd provides initiate its own recovery and wind- is reviewed on an annual basis. IT services to LCH SA and a practical down plan, cease to operate following a Further, reverse stress testing exercise approach on how LCH SA will Business continuity or Cyber event, or is conducted at least quarterly for each manage a potential wind down of notify LCH SA of its termination of default fund and is subject to review by LCH Ltd is now included in the RP. services. as well as the corresponding LCH Executive Risk Committee. Risk recovery tools in each case. monitoring mechanisms have been 1. Identification of Critical Services and The RP also describes the business established in order to anticipate and Operations continuity procedures and exit identify any credit or market risks with With respect to the critical services management plans that LCH SA would respect to a clearing member, including that might impact the continuity of LCH initiate upon the failure of a critical daily monitoring of credit watch lists by SA’s operations, the proposed RP third-party service provider including LCH SA’s credit risk department.

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The RP covers the default of one or services provided by LCH SA (e.g. the Crisis Management Team (Crisis multiple Clearing Member(s) on one or failure in the provision of service by a Management Team Activation Plan); several of its markets, where LCH SA third party, unavailability of primary —The Tactical Procedures used to fuel has to re-establish the matched book place of work, Staff unavailability to a the decision-making process, and may have allocate any uncovered point where the continuity of operations depending on the crisis scenario; credit losses to its own capital or to may be compromised or the occurrence —The Communication Procedures used surviving clearing members. of a cyber-event). to dress the guidelines of the With respect to liquidity shortfalls as The most important operational notification of the incident; a result of the clearing member default, exposures within SA relates to Cyber —The several contact registries the existing liquidity risk management risk: necessary to swiftly notify the framework seeks to manage liquidity —Third party liability, associated relevant contacts. risk by requiring certain minimum damages and defense costs arising A specific change in the plan has been liquidity coverage ratio and using from the following, amongst others: to detail the case of a failure of LCH Ltd reserve stress testing to identify Privacy and confidentiality, Network which provides critical IT service to plausible scenarios where the liquidity security, Media liability, Regulatory LCH SA. The following scenarios have coverage ratio falls below 100%, as well costs and fines, Internal investigation; been identified: as considering the liquidity impact as a cover combines the Civil Liability and 1. A Business continuity event result of the default of its liquidity line Crime policy only for Third Party affecting LCH Ltd. This is mitigated provider. related Liabilities and the Cyber through highly resilient systems LCH SA would leverage on the policy; described in the business continuity reserve stress testing scenarios and the —Business Interruption, caused by a plan. liquidity line provider’s default to Cyber incident or a software 2. A sale of LCH SA. In this case, LCH define the liquidity recovery scenarios. In addition, the RP provides that LCH malfunction. Ltd would continue to provide the SA uses a set of early warning indicators The definition of a cyber crisis service over the period required to exit and management actions to mitigate involves several notions which, and described in detail in the exit plan. liquidity risk prior to implementing RP. according to the ISO 27000 standard, The plan states the main steps that To the extent a clearing member default can be described as follows: would be followed. has occurred, LCH SA would perform —A security event is an identified 3. A Wind-down of LCH Ltd. In this increased risk monitoring, including occurrence of a system, service or case, LCH Ltd will have insufficient preparation of liquidity risk reports that network state indicating a possible resources to continue as a CCP but will would be produced several times a day. breach of information security policy continue to provide the service for 6 The RP covers the potential and or failure of controls, or a previously months supported by its wind down actual liquidity shortfalls as result of a unknown situation that can be capital. The plan describes the steps clearing member or allied clearing security relevant that would be followed to replicate the house default. —A security incident is a single or a exact IT service provided by LCH Ltd on For operational risks, the RP provides series of unwanted or unexpected short notice. that on a monthly basis, control information security events that have Business risk is managed by the assessments, incident and audit a significant probability of relevant individual business lines and recommendations are reviewed and compromising business operations requires frequent monitoring of results adjusted as appropriate. On a yearly and threatening information security. against budget and financial plans, with a second line challenge performed by basis, a risk and control self-assessment The following scenarios are possible the risk and finance departments to is performed whereby all risks are for a cyber attack: reassessed. The operational risk verify if sufficient capital buffers are —Attempts (either failed or successful) department performs second line available for applicable business risks. to gain unauthorized access to a challenge on all these activities. In In addition, LCH SA conducts a yearly system or its data addition, all ‘‘major’’ or ‘‘high’’ review of business risk scenarios to —Security breach or potential security incidents are processed through a define potential loss scenarios under breach detailed incident review to identify foreseeable conditions and the LCH SA —Unauthorized scan or probe actions to further improve the control finance department monitors key —Unwanted disruption or denial of environment. metrics, including revenues and LCH SA performs a business impact service quarterly financial information. analysis where it identifies all critical —Malicious code or virus Investment risk and second line systems and departments and has in —Unauthorized processing or storage of monitoring is also conducted with place a global business continuity data respect to interest rate risk, aggregate strategy which outlines the strategy to —Networking system failure credit risk exposure, daily mark-to- maintain critical services in case of a (widespread) market limits, and internal credit scores disaster. The RP further identifies —Application or database failure for investment counterparties. events, including cyber-attacks, failure (widespread) The RP also considers that LCH SA is —Etc. of a critical service provider, failure of connected to a broad range of financial data providers and exchanges, failure of A crisis management plan has been market infrastructures, including central LCH SA’s Parent, and reputational developed to manage the risks listed securities depositories, settlement events as potential operational risks that above. It comprises: platforms and interoperating central could threaten its continued —The procedure to identify the priority counterparties and identifies the types functioning. of an incident and decide whether to of operational or financial failures that The RP covers both a loss resulting activate the Crisis Management Plan could restrict LCH SA’s ability to from an operational risk event (for (Triaging Procedure); operate. example resulting from a fraud) or any —The procedure to notify the hierarchy Finally, the RP identifies a series of other event which impacts the critical (Escalation Procedure) and activate scenarios which, taken together, could

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also impact the continued functioning Skin in the Game, this may lead to start 4. Identification and Assessment of of critical services. up of the recovery plan and application Recovery Tools of capital conservation measures. 3. Triggers for RP The RP identifies the various recovery Fourth, should losses arising from a tools that may be applied by LCH SA The RP includes a detailed list of clearing member default be consumed events, which if they were to occur upon the triggering of the RP, using by the defaulter’s margin and default again the same distinction between would trigger the implementation of a fund contribution and subsequently specific action identified in the RP. clearing member default events and LCH SA’s contribution from capital, non-clearing member events. The RP provides that a clearing LCH SA may look to non-defaulting member default will be identified For clearing member default member default fund contributions. scenarios, the existing stages of the LCH through credit risk monitoring and Those amounts are pre-funded by review of external information SA default management process have members and held and controlled by been used as the framework for indicating a default. Each LCH SA LCH SA for the purposes of managing a business line then applies its own identifying and confirming the default and, thus, the utilization of appropriate tools to use in the event of default management process under those amounts is not considered an a clearing member default. The RP which a default management group application of the RP. However, LCH SA describes the default management identifies and manages the phases of the has the right to trigger an assessment of process in detail and summarizes the default management process and the the defaults as to reestablish the fund to actions to be taken at each phase, application of the default waterfall. The its original size, and such an assessment including, as mentioned above, (i) possible triggers for the RP include: (i) is considered to be a recovery measure reestablishing the matched book, (ii) A clearing member default, in which under the RP. Finally, when it is no default fund assessments, (iii) service case the default procedures will be longer possible for LCH SA to make continuity charges, and (iv) voluntary initiated to reestablish the matched assessments and all pre-funded default payments. To the extent that the default book; (ii) several default events may fund contributions have been used, lead to more than one replenishment of recovery measures under the RP, as fund and assessments cannot manage Skin in the Game (iii) mutualized described below, will be implemented. the losses accumulated from the default fund contributions per specific With respect to liquidity shortfall clearing member default and any service default have been consumed, in which triggers, LCH SA runs a daily liquidity continuity or voluntary service case unfunded resources will be used to assessment and monitors key liquidity continuity contributions received are keep LCH SA appropriately funded. drivers. In the event that these fall not sufficient to cover the relevant Each LCH SA business lines maintain below a specific level, the RP will be losses, the service closure phase of the its own default management process triggered. In addition, the occurrence of default management process is triggered and waterfall, but, in general, the RP a clearing member default or the failure and all outstanding contracts will be describes the tools used in the event of of a third-party providing settlement closed out as of the clearing day a clearing member default. The default and payment services to clearing following such determination and all management process is used to re- member may also result in increased relevant losses are allocated to the establish the matched book of LCH SA monitoring, and in the event that LCH clearing members. If the RP is triggered and return back to business as usual and SA does not have sufficient liquid as a result of a liquidity shortfall, the RP therefore considered as a recovery tool. resources to meet liquidity needs, the provides that LCH SA may use its The relevant governance for the RP would be triggered. central bank credit line to deposited management of a default is followed as With respect to non-clearing member securities received on behalf of described in the paragraph 5. default events, the RP identifies those defaulting clearing member(s). The When covering the relevant credit events with more particularity and amounts of non-Euro liquidity are very losses related to a default event, first, identifies the specific triggers for the RP low and LCH SA has appropriate LCH SA looks to the defaulting clearing with respect to such events: liquidity lines but also has recovery member’s margin. These amounts are For investment losses, which are tools in place for this for example the already held by LCH SA and are defined as losses related to the default possibility to pay in alternative currency available to manage the default of a of an investment counterparty or losses (Euro). clearing member and, as such, are not incurred as a result of extreme market Other potential tools to manage considered to be a trigger of the RP. conditions, the RP is triggered if losses liquidity stress situation are limits with Second, LCH SA looks to the defaulting are greater than the maximum respect to illiquid collateral or, if clearing member’s default fund regulatory capital allocated to this necessary apply increased haircuts on contribution, which may be allocated to activity. For operational risk events, the certain types of collateral to incentivize the defaulting clearing member’s RP is triggered upon any operational the use of more liquid collateral as well shortfalls. Again, this action is within losses that consume the regulatory or apply specific liquidity margins. the control of LCH SA and does not capital LCH SA holds against the The measures should assure that LCH impact the capital adequacy of LCH SA, relevant risks; failure of a third party SA has sufficient liquid resources at all so is also not considered a trigger for the which impacts the provision of LCH times. As a last resort, under its RP. Third, in line with requirements SA’s services; and reputational events rulebook, LCH SA could defer funding under EMIR, LCH SA is required to hold impacting LCH SA’s reputation with for the settlement platform for a limited capital equivalent to 25 percent of LCH clearing members and partners. With period of time. SA’s minimum net capital requirement respect to business risks, the RP is As to non-clearing member events, the against which default losses can be triggered upon a loss that consumes the tool that is used under the RP will applied against liquid available capital. regulatory capital LCH SA holds against depend on the nature of the event, but In addition, excess capital is held to the relevant risks. The RP may also be for most investment, business, and replenish such amount within the triggered upon the failure of other operational risks, LCH SA has its capital relevant EMIR deadline. Where multiple financial market infrastructures or a surplus that it can allocate losses defaults occur over a longer time period failure in the delivery of services against. Further, LCH SA can put in and lead to multiple replenishments of including a cyber-event. place several measures for capital

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conservation and LCH SA also • facilitate systematic and efficient service provider, LCH SA would be able maintains insurance coverage for response, to exercise several contractual rights specific operational risk events. As a • empowered decision making, and maintains exit plans which are last resort, LCH SA may also initiate a • all response activities are intended to safeguard the continuity of capital raising strategy in order to obtain recognised and coordinated. services. LCH SA also maintains back an injection of capital to replenish any LCH SA monitors on a monthly basis up procedures and protocols that would consumed capital. if it meets the EMIR capital be initiated if there is an impact on In order to cope with a liquidity stress requirements and in addition it critical services of FMIs, for example its situation, LCH SA has the possibility to monitors sufficient ‘‘surplus/buffers ability to collect margin within T2 use non-Euro collateral to raise capital’’ is available to assure recovery under an emergency platform. Finally, liquidity. The repurchase agreements of the CCP from both CMD and non- LCH SA maintains a crisis will then realise the required currency CMD losses under single scenarios (e.g. communication plan, which outlines liquidity requirements needed to satisfy default of a clearing member on one or the procedure for communicating with the outgoings resulting from the member several services, default on an clearing members and partners in the default. Non-euro bonds deposited as investment counterpart) and combined event of a disruption. non cash collateral by surviving scenarios (e.g. Failure of a clearing With respect to each recovery tool members can be used for repo member which is also acting as an identified, the RP also seeks to assess transactions and CALM should perform investment counterparty). Associated to that each tool possesses the following repo transactions with Gilt/T-bills as each scenario is attached one or several characteristics: Comprehensive; collateral in order to raise liquidity. indicators and the capital coverage tools effective, including as to reliability, CaLM has multi-currency GMRA signed available in each case. In addition to the timeliness; transparent, provides with a number of investment banks, capital requirements and available appropriate incentives, and results in a which will allow CaLM to do bilateral headroom, LCH SA follows indicators minimum negative impact. To confirm transactions. If liquidity is received in such as the Liquidity Coverage Ratio, that each recovery tool does, in fact, non-euro currencies through bilateral the aggregate credit risk and market risk have these characteristics, the RP repo transaction this can be transformed exposure on its investment portfolio, considers as to each: The barriers or into Euro through the recovery tool ‘‘FX operational risk and business risks constraints within the tool itself; the markets’’. CALM also has its disposal indicators. Capital coverage instruments steps and time to implement (if not some Triparty repo agreement signed to include prefunded capital surplus and already available as a tool); the likely do cross currency repo transactions, buffers, limitation of credit and market effectiveness of the tool; any risk of where liquidity is received directly in risks and therefore of potential losses execution; the potential impacts on Euro from Gilt or USD securities. and insurance coverage. The capital and participants and markets generally; the For any shortfall in a particular buffers are monitored in order to allow sequencing of the use of the tools where currency SA has the ability to enter into LCH SA to always be in a situation to multiple tools may be required; and the a FX Transaction with a range of replenish the SIG within one month, if legal basis of the tool. The RP also counterparties. LCH SA also has the the CCP was to face multiple defaults. includes a qualitative and quantitative possibility to transform liquidity The liquidity coverage ratio indicator assessment to provide an indication of received through bilateral repo ensures that LCH SA will always be in the likelihood and severity of a potential transaction of collateral in USD and a situation to have access to sufficient recovery situation and whether the tools GBP into Euro. liquidity provided either from its own included in the RP are adequate. Article 4.4.3.2 of CDSClear rulebook cash or by the ECB even in very extreme and instruction I.V.4–2 of the SA cases as no capital coverage is possible 5. Governance Requirements Rulebook allows LCH to convert in a liquidity stress scenario. The The creation of the RP and its amounts owed to members into such Aggregate Risk Exposure and Market approval is subject to a number of layers other currency or currencies, using a Risk limits on the investment portfolio of governance approval. At a high level, reasonable/prevailing rate of exchange. are in place to ensure that capital will the LCH SA Management Committee is In the application of this regulation, be sufficient to cover any reasonable responsible for the preparation of the RP LCH SA is therefore able to resolve a losses. Operational risk is followed to and implementation of the monitoring specific currency liquidity shortfall by ensure that operational risk capital can and the recovery tools set forth in the completing the required transaction in be replenished if the insurance policy RP. Before submission to the LCH SA an alternate currency than the original does not cover the loss event. Finally, Risk Committee, the RP is reviewed and obligation. business risk scenarios are monitored to validated by the Executive Risk A ‘‘Cyber Crisis Management Plan’’ ensure LCH SA has sufficient capital for Committee of LCH Group. The LCH SA has been developed which provide a replenishment if required. Risk committee, which includes framework of procedures allowing LCH Next to the surplus capital, the LCH independent directors, then reviews, SA to respond to cyber incidents in case Board may decide to withhold Dividend challenges (if needed), and recommends of cyber crisis. As such, the process payment and Variable bonus payment to the RP for approval by the LCH SA defined is to be activated in case of be used as additional buffers. board. Final approval of the RP rests detection of a cyber incident that could If an event resulted in a major with the LCH SA Board. potentially cause a significant impact on disruption of its activities, LCH SA At a more granular level, the RP LCH SA business objectives. Cyber would initiate its business continuity identifies the groups and individuals incidents can develop rapidly and strategy, which establishes an enterprise within LCH SA that are responsible for business impact can quickly escalate. wide RP and response proportionate to the various aspects of the RP. The objective of this framework is to the event which aims to minimize the A clearing member default will be manage cyber events or incident in a impact of a major disruption on LCH managed in accordance with the way that: SA’s critical business and resources, or relevant procedures. The Default • Limits the damage, increases the in case of a cyber-event LCH will trigger Management Group (‘‘DMG’’) is confidence in stakeholders and reduces the cyber crisis management plan. For responsible for the management of the recovery time and costs, any disruption or loss of key third-party default while all critical decisions are

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escalated and submitted to the LCH SA recover from uncovered credit losses or event that impacts LCH SA’s continued Default Crisis Management Team liquidity shortfalls arising from a functioning. The RP also facilitates the (‘‘DCMT’’). All decision which may lead member default) will be incorporated prompt clearance and settlement of the to the triggering of recovery measures into each relevant fire drill cycle. As securities as it will enable LCH to levy are subject to discussion in the DCMT noted in the RP, LCH SA performs an additional resources to match the and approval of the LCH SA CEO. annual multi-service fire drill and positions, limit the volume of fails and With respect to non-clearing member service specific fire drills are performed more generally avoid the market events, the management of those events at least annually and testing for non- disruption that would be caused by the will depend on the nature of the event. default events are incorporated into the default of the CCP. The objective of the For example, investment losses and fire drill regime as well. Should either RP is to maintain the viability of the liquidity shortfalls are managed from a the periodic testing or other change CCP and bring back the company to first line of defense, which attempts to within LCH SA result in the need to normal business, thereby ensuring that control risks within the risk appetite amend the RP, the RP will be revised in the securities and funds that the parameters set by the Board, and then accordance with the governance members have deposited as guarantees are escalated as appropriate. requirements identified above. be fully returned to the market Operational risks are managed in participants. In that regard, LCH SA accordance with the operational risk (b) Statutory Basis policy approved by the Board and LCH SA believes that the proposed believes that the RP supports the public reporting and second line challenges are rule change is consistent with the interest, in line with Section 12 performed by the operational risk requirements of Section 17A of the Act 17A(b)(3)(F) of the Act. department. Business risk is managed and the regulations thereunder, The RP would also be consistent with by individual business lines and including the standards under Rule the specific relevant requirements of requires frequent monitoring of results 17Ad–22.9 Rule 17Ad–22, including under 17Ad– against budget and financial plans, with Section 17A(b)(3)(F) of the Act 10 22(e)(2) and (3) 13. Rule 17Ad–22(e)(2) 14 a second line challenge performed by requires, among other things, that the provides that a covered clearing agency the risk and finance departments to rules of a clearing agency be designed to shall have governance arrangements that verify if sufficient capital buffers are promote the prompt and accurate are clear and transparent and clearly available for the applicable business clearance and settlement of securities prioritize the safety and efficiency of the risks. transactions to assure safeguarding of covered clearing agency, to support the Upon the occurrence of a clearing securities and funds which are in the public interest requirements in Section member default, the recovery measures custody or control of the clearing agency 17A of the Act applicable to clearing that will apply are clearly set forth in or for which it is responsible, and in agencies, and the objectives of owners general to protect investors and the LCH SA’s rulebook and LCH SA’s CEO and participants. LCH SA believes that public interest. LCH SA believes that has the authority to trigger the different the RP is consistent with these the RP will permit it to initiate recovery stages in the waterfall process, but will requirements. The RP includes consult with DCMT and regulators prior upon the occurrence of certain trigger extensive governance requirements that to taking any action. In addition, the RP events to maintain continuity of critical clearly identify the lines of provides that the LCH SA will also services or orderly wind down in responsibility with respect to the RP. As activate an emergency board meeting for accordance with the applicable approval (if reasonably possible). Upon requirements of Rule 17Ad–22 11 and described above, at a high level, the receipt of information relevant to a LCH SA’s rules. The RP is designed to LCH SA Management Committee is scenario causing non-default losses, the formalize and set out the risk framework responsible for the preparation of the RP LCH SA management committee will and measures that LCH SA will use to and implementation of the monitoring consider whether a recommendation to ensure its stability and recovery in the and the recovery tools set forth in the formally invoke the RP should be made event of a crisis in order to be able to RP. The LCH SA Risk committee, which to the LCH SA Board. Upon receipt of maintain its critical business processes includes clearing member a recommendation for action, the LCH and operations. Specifically, the RP representatives, then reviews, SA Board will consider the information would describe the LCH SA risk challenges (if needed), and recommends presented to determine if the RP should framework and process applicable to the RP for approval by the LCH SA be formally invoked. identify measure, monitor and manage board. Final approval of the RP rests with the LCH SA Board, which 6. Plan Testing and Maintenance the risks faced by LCH SA in the provision of clearing, settlement and includes, among other categories, non- The RP requires that LCH SA conduct risk management services when a crisis executive Chair, independent directors testing and review of member default event occurs. The RP would serve as a and user directors. At a more granular rules and associated procedures through means of addressing, credit risk, market level, the RP identifies the groups and the running of periodic ‘‘fire drills’’ risk, general business risk, operational individuals within LCH SA that are which simulate member default risk, and other risks that may otherwise responsible for the various aspects of scenarios. According to the RP, the fire threaten the viability of LCH SA. The RP the RP. Therefore, LCH SA believes that drills are intended to simulate all would also support the stability of LCH the RP contains governance aspects of a member default, including SA as a clearing house that is part of the arrangements that are clear and the auctioning of the defaulting broader financial markets and seeks to transparent and clearly prioritize the members portfolio to non-defaulting promote the protection of market safety and efficiency of the covered members (where appropriate) and participants from the risk of default by clearing agency, to support the public involves the participation of members a clearing member of LCH SA or an interest requirements and the objectives and relevant functions within the LCH unforeseen operational or business of owners and participants, and is, SA organization. Further, because one of the main scenarios contemplated under 9 17 CFR 240.17Ad–22. 12 15 U.S.C. 78q–1(b)(3)(F). the RP is a clearing member default, the 10 15 U.S.C. 78q–1(b)(3)(F). 13 17 CFR 240.17Ad–22(e)(2) and (3). testing of this element (i.e. the tools to 11 17 CFR 240.17Ad–22. 14 17 CFR 240.17Ad–22(e)(2).

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therefore, consistent with the appropriate in furtherance of the internet website (http://www.sec.gov/ requirements of Rule 17Ad–22(e)(2). purposes of the Act. rules/sro.shtml). Copies of the submission, all subsequent Rule 17Ad–22(e)(3) 15 requires that a C. Clearing Agency’s Statement on amendments, all written statements covered clearing agency maintain a Comments on the Proposed Rule with respect to the proposed rule sound risk management framework for Change Received From Members, change that are filed with the comprehensively managing legal, credit, Participants or Others Commission, and all written liquidity, operational, general business, Written comments relating to the investment, custody, and other risks communications relating to the proposed rule change have not been proposed rule change between the that arise in or are borne by the covered solicited or received. LCH SA will Commission and any person, other than clearing agency, which must include notify the Commission of any written those that may be withheld from the plans for the recovery and orderly wind- comments received by LCH SA. public in accordance with the down of the covered clearing agency provisions of 5 U.S.C. 552, will be necessitated by credit losses, liquidity D. Extension of Time Period for available for website viewing and shortfalls, losses from general business Commission Action printing in the Commission’s Public risk, or any other losses. The RP is LCH SA does not consent to the Reference Room, 100 F Street NE, designed to maintain the continuity of extension of the time period listed in Washington, DC 20549 on official critical services in times of extreme Section 19(b)(2) of the Securities business days between the hours of stress and to facilitate the recovery of Exchange Act of 1934 for Commission 10:00 a.m. and 3:00 p.m. Copies of the LCH SA in the event of extreme (loss) action. filing also will be available for scenarios, as part of LCH SA’s III. Date of Effectiveness of the inspection and copying at the principal comprehensive risk management office of LCH SA and on LCH SA’s framework. As described above, the RP Proposed Rule Change and Timing for Commission Action website at https://www.lch.com/ seeks to identify those services which resources/rules-and-regulations/ could impact the continuity of LCH Within 45 days of the date of proposed-rule-changes-0. All comments SA’s operations, implement early publication of this notice in the Federal received will be posted without change. warning indicators to identify potential Register or within such longer period Persons submitting comments recovery scenarios and define the up to 90 days (i) as the Commission may arecautioned that we do not redact or triggers for initiating the RP, and clearly designate if it finds such longer period edit personal identifying information identify the recovery tools available to be appropriate and publishes its from comment submissions. You should under the RP. Accordingly, LCH SA reasons for so finding or (ii) as to which submit only information that you wish believes the RP is consistent with Rule the self-regulatory organization to make available publicly. All 17Ad–22(e)(3).16 consents, the Commission will: submissions should refer to File (A) By order approve or disapprove Number SR–LCH SA–2019–008 and B. Clearing Agency’s Statement on such proposed rule change, or should be submitted on or before Burden on Competition (B) institute proceedings to determine November 19, 2019. whether the proposed rule change Section 17A(b)(3)(I) of the Act should be disapproved. For the Commission, by the Division of requires that the rules of a clearing Trading and Markets, pursuant to delegated agency not impose any burden on IV. Solicitation of Comments authority.18 competition not necessary or Interested persons are invited to Jill M. Peterson, appropriate in furtherance of the submit written data, views, and Assistant Secretary. 17 purposes of the Act. LCH SA does not arguments concerning the foregoing, [FR Doc. 2019–23552 Filed 10–28–19; 8:45 am] believe the proposed rule change would including whether the proposed rule BILLING CODE 8011–01–P impact or impose any burden on change is consistent with the Act. competition. The proposed rule change Comments may be submitted by any of would establish and maintain LCH SA’s the following methods: SECURITIES AND EXCHANGE RP in accordance with the CCA rules. COMMISSION The RP would not affect clearing Electronic Comments member’s access to services offered by • Use the Commission’s internet Submission for OMB Review; LCH SA or impose any direct burden on comment form (http://www.sec.gov/ Comment Request clearing members. To the contrary, the rules/sro.shtml); or RP seeks to identify the key risks and to • Send an email to rule-comments@ Upon Written Request, Copies Available From: Securities and Exchange establish appropriate recovery measures sec.gov. Please include File Number SR– Commission, Office of FOIA Services, to ensure LCH SA’s ability to operate in LCH SA–2019–008 on the subject line. 100 F Street NE, Washington, DC the event of an extreme loss. Paper Comments 20549–2736 Accordingly, the proposed rule change would not unfairly inhibit market • Send paper comments in triplicate Extension: participants’ access to LCH SA’s to Secretary, Securities and Exchange Rule 0–4, SEC File No. 270–569, OMB services or disadvantage or favor any Commission, 100 F Street NE, Control No. 3235–0633 particular user in relationship to Washington, DC 20549–1090. Notice is hereby given that pursuant another user. Therefore, LCH SA does All submissions should refer to File to the Paperwork Reduction Act of 1995 not believe that the proposed rule Number SR–LCH SA–2019–008. This (44 U.S.C. 3501 et seq.), the Securities change imposes any burden on file number should be included on the and Exchange Commission (the competition that is not necessary or subject line if email is used. To help the ‘‘Commission’’) is soliciting comments Commission process and review your on the collection of information 15 17 CFR 240.17Ad–22(e)(3). comments more efficiently, please use summarized below. The Commission 16 17 CFR 240.17Ad–22(e)(3). only one method. The Commission will 17 15 U.S.C. 78q–1(b)(3)(I). post all comments on the Commission’s 18 17 CFR 200.30–3(a)(12).

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plans to submit this collection of investors and the intended purposes of information is necessary for the proper information to the Office of the Act. performance of the functions of the Management and Budget for extension Applicants for Orders under the agency, including whether the and approval. Advisers Act can include registered information will have practical utility; Rule 0–4 (17 CFR 275.0–4) under the investment advisers, affiliated persons (b) the accuracy of the agency’s estimate Investment Advisers Act of 1940 (‘‘Act’’ of registered investment advisers, and of the burden of the collection of or ‘‘Advisers Act’’) (15 U.S.C. 80b–1 et entities seeking to avoid investment information; (c) ways to enhance the seq.) entitled ‘‘General Requirements of adviser status, among others. quality, utility, and clarity of the Papers and Applications,’’ prescribes Commission staff estimates that it information collected; and (d) ways to general instructions for filing an receives up to 4 applications per year minimize the burden of the collection of application seeking exemptive relief submitted under rule 0–4 of the Act information on respondents, including with the Commission. Rule 0–4 seeking relief from various provisions of through the use of automated collection currently requires that every application the Advisers Act and, in addition, up to techniques or other forms of information for an Order for which a form is not 3 applications per year submitted under technology. Consideration will be given specifically prescribed and which is Advisers Act rule 206(4)–5, which to comments and suggestions submitted executed by a corporation, partnership addresses certain ‘‘pay to play’’ in writing within 60 days of this or other company and filed with the practices and also provides the publication. Commission contain a statement of the Commission the authority to grant Please direct your written comments applicable provisions of the articles of applications seeking relief from certain to Charles Riddle, Acting Director/Chief incorporation, bylaws or similar of the rule’s restrictions. Although each Information Officer, Securities and documents, relating to the right of the application typically is submitted on Exchange Commission, C/O Candace person signing and filing such behalf of multiple applicants, the Kenner, 100 F Street NE, Washington, application to take such action on behalf applicants in the vast majority of cases DC 20549; or send an email to: PRA_ of the applicant, and a statement that all are related entities and are treated as a [email protected]. such requirements have been complied single respondent for purposes of this with and that the person signing and analysis. Most of the work of preparing Dated: October 24, 2019. filing the application is fully authorized an application is performed by outside Eduardo A. Aleman, to do so. If such authorization is counsel and, therefore, imposes no Deputy Secretary. dependent on resolutions of hourly burden on respondents. The cost [FR Doc. 2019–23600 Filed 10–28–19; 8:45 am] stockholders, directors, or other bodies, outside counsel charges applicants BILLING CODE 8011–01–P such resolutions must be attached as an depends on the complexity of the issues exhibit to or quoted in the application. covered by the application and the time Any amendment to the application must required. Based on conversations with SECURITIES AND EXCHANGE contain a similar statement as to the applicants and attorneys, the cost for COMMISSION applicability of the original statement of applications ranges from approximately authorization. When any application or $13,600 for preparing a well- [Release No. 34–87389; File No. SR– amendment is signed by an agent or precedented, routine (or otherwise less NYSECHX–2019–15] attorney, rule 0–4 requires that the involved) application to approximately power of attorney evidencing his $212,800 to prepare a complex or novel Self-Regulatory Organizations; NYSE authority to sign shall state the basis for application. We estimate that the Chicago, Inc.; Notice of Filing and the agent’s authority and shall be filed Commission receives 1 of the most time- Immediate Effectiveness of a Proposed with the Commission. Every application consuming applications annually, 3 Rule Change To Establish the NYSE subject to rule 0–4 must be verified by applications of medium difficulty, and 3 Chicago BBO, NYSE Chicago Trades the person executing the application by of the least difficult applications subject and NYSE Chicago Integrated Feed providing a notarized signature in to rule 0–4.1 This distribution gives a Market Data Feeds substantially the form specified in the total estimated annual cost burden to October 23, 2019. rule. Each application subject to rule 0– applicants of filing all applications of 4 must state the reasons why the $392,500 [(1 × $212,800) + (3 × $46,300) Pursuant to Section 19(b)(1) of the applicant is deemed to be entitled to the × Securities Exchange Act of 1934 (the + (3 $13,600)]. The estimate of annual 1 2 action requested with a reference to the cost burden is made solely for the ‘‘Act’’), and Rule 19b–4 thereunder, provisions of the Act and rules purposes of the Paperwork Reduction notice is hereby given that on October thereunder, the name and address of Act, and is not derived from a 18, 2019, NYSE Chicago, Inc. (‘‘NYSE each applicant, and the name and comprehensive or even representative Chicago’’ or the ‘‘Exchange’’) filed with address of any person to whom any survey or study of the costs of the Securities and Exchange questions regarding the application Commission rules and forms. Commission (‘‘Commission’’) the should be directed. Rule 0–4 requires The requirements of this collection of proposed rule change as described in that a proposed notice of the proceeding information are required to obtain or Items I, II.A, and II.C below, which initiated by the filing of the application retain benefits. Responses will not be Items have been prepared by the accompany each application as an kept confidential. An agency may not Exchange. The Exchange filed the exhibit and, if necessary, be modified to conduct or sponsor, and a person is not proposal as a ‘‘non-controversial’’ reflect any amendment to the required to respond to a collection of proposed rule change pursuant to 3 application. information unless it displays a Section 19(b)(3)(A)(iii) of the Act and The requirements of rule 0–4 are 4 currently valid control number. Rule 19b–4(f)(6) thereunder. The designed to provide Commission staff Written comments are invited on: (a) Commission is publishing this notice to with the necessary information to assess Whether the proposed collection of whether granting the Orders of 1 15 U.S.C. 78s(b)(1). exemption are necessary and 1 The estimated 3 least difficult applications 2 17 CFR 240.19b–4. appropriate in the public interest and include the estimated 3 applications per year 3 15 U.S.C. 78s(b)(3)(A)(iii). consistent with the protection of submitted under Advisers Act rule 206(4)–5. 4 17 CFR 240.19b–4(f)(6).

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solicit comments on the proposed rule across NYSE exchanges would create than it makes that information available change from interested persons. efficiencies for customer feed handlers. to the processor under the CQ Plan or The Exchange believes that the the UTP Plan, as applicable. I. Self-Regulatory Organization’s proposed NYSE Chicago Market Data Statement of the Terms of Substance of Feeds will provide subscribers of the NYSE Chicago Trades the Proposed Rule Change Book Feed market data product with the NYSE Chicago Trades is a NYSE The Exchange proposes to establish same scope of Exchange information Chicago-only market data feed that the NYSE Chicago BBO (‘‘NYSE Chicago once the Exchange transitions to Pillar, would provide vendors and subscribers BBO’’), NYSE Chicago Trades (‘‘NYSE but with greater optionality. Subscribers on a real-time basis with the same last Chicago Trades’’) and NYSE Chicago that would like to continue to receive sale information that NYSE Chicago Integrated Feed (‘‘NYSE Chicago both order data (including depth of reports under the Consolidated Tape Integrated Feed’’) market data feeds. The book) and last-sale data would be able Association Plan (‘‘CTA Plan’’) and the proposed rule change is available on the to replace Book Feed with NYSE UTP Plan for inclusion in the Exchange’s website at www.nyse.com, at Chicago Integrated and would not need consolidated feeds. NYSE Chicago the principal office of the Exchange, and to separately subscribe to either NYSE Trades would include the real-time last at the Commission’s Public Reference Chicago BBO or NYSE Chicago Trades. sale price, time and size information Room. Subscribers that do not need as much (‘‘NYSE Chicago Last Sale Information’’) data could opt instead to subscribe to for all securities that are traded on the II. Self-Regulatory Organization’s only NYSE Chicago BBO or NYSE Exchange. NYSE Chicago will make the Statement of the Purpose of, and Chicago Trades. In anticipation of the NYSE Chicago Trades available over a Statutory Basis for, the Proposed Rule transition to the Pillar trading system, single datafeed, regardless of the Change the Exchange has provided notice of the markets on which the securities are In its filing with the Commission, the availability of the proposed market data listed. self-regulatory organization included products and related testing NYSE Chicago Trades would allow statements concerning the purpose of, opportunities.6 NYSE Chicago Vendors to consume and and basis for, the proposed rule change make available NYSE Chicago Last Sale NYSE Chicago BBO and discussed any comments it received Information on a real-time basis. NYSE on the proposed rule change. The text NYSE Chicago BBO is a NYSE Chicago Vendors may distribute the of those statements may be examined at Chicago-only market data feed that NYSE Chicago Trades to both the places specified in Item IV below. would provide vendors and subscribers professional and non-professional The Exchange has prepared summaries, on a real-time basis with the same best- subscribers. The Exchange would make set forth in sections A and C below, of bid-and-offer information that NYSE NYSE Chicago Last Sale Information the most significant parts of such Chicago reports under the Consolidated available through the NYSE Chicago statements. Quotation Plan (‘‘CQ Plan’’) and the Trades datafeed no earlier than it makes Plan Governing the Collection, that information available to the A. Self-Regulatory Organization’s Consolidation, and Dissemination of processor under the CTA Plan or the Statement of the Purpose of, and Quotation and Transaction Information UTP Plan, as applicable. In addition to Statutory Basis for, the Proposed Rule for Nasdaq-Listed Securities Traded on the information that the Exchange Change Exchanges on an Unlisted Trading provides to the processor, NYSE 1. Purpose Privilege Basis (‘‘UTP Plan’’). NYSE Chicago Last Sale Information will also Chicago BBO would include the best include a unique sequence number that The Exchange proposes to establish bids and offers (‘‘NYSE Chicago BBO the Exchange assigns to each trade and NYSE Chicago BBO, NYSE Chicago Information’’) for all securities that are that allows an investor to track the Trades and NYSE Chicago Integrated traded on the Exchange. NYSE Chicago context of a trade through other Feed (‘‘NYSE Chicago Market Data will make the NYSE Chicago BBO Exchange market data products. Feeds’’). The Exchange recently got available over a single datafeed, NYSE Chicago Integrated Feed approval to decommission the Book regardless of the markets on which the Feed market data product when it securities are listed. NYSE Chicago Integrated Feed is a transitions to the Pillar trading NYSE Chicago BBO would allow NYSE Chicago-only market data feed platform.5 As proposed, once the vendors, broker-dealers, and others that would provide vendors and Exchange transitions to the Pillar (‘‘NYSE Chicago Vendors’’) to consume subscribers on a real-time basis with a trading platform, it will offer the NYSE and make available NYSE Chicago BBO unified view of events, in sequence, as Chicago Market Data Feeds in lieu of the Information on a real-time basis. NYSE they appear on the NYSE Chicago current Book Feed market data product. Chicago Vendors may distribute the matching engines. The NYSE Chicago The Exchange believes that utilizing the NYSE Chicago BBO to both professional Integrated Feed would include both top standardized Pillar market data feeds and non-professional subscribers. The of book and depth of book order data, Exchange would make NYSE Chicago last sale data, and security status 5 See Securities Exchange Act Release No. 86709 BBO Information available through the updates (e.g., trade corrections and (August 20, 2019), 84 FR 44654 (August 20, 2019) (SR–NYSECHX–2019–08) (Notice proposing trading NYSE Chicago BBO datafeed no earlier trading halts) and stock summary rules to support the transition of trading to the messages. The stock summary message Pillar trading platform, including proposing to 6 On August 16, 2019, the Exchange provided would update every minute and would delete Article 4, Rule 1, which currently describes notice of the proposed NYSE Chicago Market Data include the Exchange’s aggregation of the Book Feed, because it will not be offered once Feeds, including that such feeds would be available the Exchange transitions to Pillar); see also to customers in shadow, i.e., for testing, on NYSE Chicago’s opening price, high Securities Exchange Act Release No. 87264 (October September 16, 2019. See Trader Update available price, low price, closing price, and the 9, 2019) (SR–NYSECHX–2019–08) (Notice of Filing here: https://www.nyse.com/trader-update/ cumulative volume for a security, which of Amendment No. 1 and Order Granting history#110000144335. See also additional Trader information is available to vendors and Accelerated Approval of a Proposed Rule Change, Updates about the feeds, available here: https:// as Modified by Amendment No. 1, to Add Rules to www.nyse.com/trader-update/ subscribers to calculate on their own Support the Transition of Trading to the Pillar history#110000137761; and https://www.nyse.com/ should they so choose. The NYSE Trading Platform). trader-update/history#110000154859. Chicago Integrated Feed would include

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information available to vendors and the receipt of NYSE Chicago BBO, NYSE market data product would be able to subscribers of both NYSE Chicago BBO Chicago Trades or NYSE Chicago obtain the same level of data from NYSE and NYSE Chicago Trades, as described Integrated Feed. Accordingly, Chicago Integrated without incurring above. subscribers of the current Book Feed any new fees. As described in Article 4, Rule 1, the product, which is also not subject to any In adopting Regulation NMS, the current Book Feed allows a subscriber to fees, would not be subject to any Commission granted self-regulatory view all individual Participant orders additional fees in order to receive any organizations (‘‘SROs’’) and broker displayed in the Matching System, of the proposed NYSE Chicago Market dealers increased authority and including the size and price associated Data Feeds. flexibility to offer new and unique with such order and the trade data for Subject to effectiveness of proposed market data to consumers of such data. executions that occur within the rule changes, the NYSE Chicago Market It was believed that this authority would Matching System. When the Exchange Data Feeds will be available when the expand the amount of data available to transitions to Pillar, current subscribers Exchange transitions to the Pillar users and consumers of such data and to the Book Feed will be able to obtain trading platform.7 also spur innovation and competition the same scope of information via the for the provision of market data. The 2. Statutory Basis proposed NYSE Chicago Integrated Exchange believes that the NYSE Feed. Accordingly, after the transition to The Exchange believes that the Chicago Market Data Feeds are precisely Pillar, subscribers of Book Feed would proposed rule change is consistent with the sort of market data products that the still need only one data product to Section 6(b) 8 of the Act (‘‘Act’’), in Commission envisioned when it satisfy their data needs. The Exchange general, and furthers the objectives of adopted Regulation NMS. The proposes to offer NYSE Chicago BBO Section 6(b)(5) 9 of the Act, in particular, Commission concluded that Regulation and NYSE Chicago Trades to provide in that it is designed to prevent NMS would itself further the Act’s goals additional optionality to data fraudulent and manipulative acts and of facilitating efficiency and subscribers that may not need the scope practices, to promote just and equitable competition: principles of trade, to foster cooperation of data included in NYSE Chicago Efficiency is promoted when broker- Integrated. and coordination with persons engaged dealers who do not need the data beyond the Offering an integrated product in facilitating transactions in securities, prices, sizes, market center identifications of addresses requests received from to remove impediments to and perfect the NBBO and consolidated last sale vendors and subscribers that would like the mechanism of a free and open information are not required to receive (and to receive the data described above in an market and a national market system pay for) such data. The Commission also integrated fashion. An integrated data and, in general, to protect investors and believes that efficiency is promoted when feed would provide greater efficiencies the public interest, and it is not broker-dealers may choose to receive (and pay for) additional market data based on their and reduce errors for vendors and designed to permit unfair own internal analysis of the need for such subscribers that currently choose to discrimination among customers, data.10 integrate the data after receiving it from brokers, or dealers. This proposal is in the Exchange. The Exchange believes keeping with those principles in that it The Exchange further notes that the that providing vendors and subscribers promotes increased transparency existence of alternatives to the with the option of a market data product through the dissemination of the NYSE Exchange’s product, including real-time consolidated data, free delayed that both integrates existing products Chicago Market Data Feeds to those consolidated data, and proprietary data and includes additional market data interested in receiving it. would allow vendors and subscribers to The Exchange also believes this from other sources, as well as the choose the best solution for their proposal is consistent with Section continued availability of the Exchange’s specific businesses. 6(b)(5) of the Act because it protects separate data feeds, ensures that the The Exchange proposes to offer investors and the public interest and Exchange is not unreasonably connectivity to the NYSE Chicago promotes just and equitable principles discriminatory because vendors and Market Data Feeds over the Liquidity of trade by providing investors with subscribers can elect these alternatives Center Network and IP network, the new options for receiving market data as as their individual business cases local area networks available to users of requested by market data vendors and warrant. The NYSE Chicago Market Data Feeds the Exchange’s co-location services in purchasers. The proposed rule change will help to protect a free and open the Mahwah, New Jersey data center. would benefit investors by facilitating market by providing additional data to The Exchange would also offer their prompt access to the real-time the marketplace and by giving investors connectivity to the NYSE Chicago information contained in the NYSE greater choices. In addition, the Market Data Feeds over the ICE Global Chicago Market Data Feeds. The proposal would not permit unfair Network, through which all other users Exchange further believes that the discrimination because the products and members access the Exchange’s proposed NYSE Chicago Market Data will be available to all of the Exchange’s trading and execution systems and other Feeds would remove impediments to customers and broker-dealers. proprietary market data products. In and perfect the mechanism of a free and addition, the proposal would not permit open market and a national market B. Self-Regulatory Organization’s unfair discrimination because the system because once the Exchange Statement on Burden on Competition products will be available to all of the transitions to the Pillar trading platform, In accordance with Section 6(b)(8) of Exchange’s customers and broker- current subscribers to the Book Feed the Act,11 the Exchange does not believe dealers. that the proposed rule change will At this time, the Exchange does not 7 The Exchange has announced that, subject to impose any burden on competition that intend to charge any fees associated rule approvals, the Exchange will transition to with the receipt of NYSE Chicago BBO, trading on Pillar on November 4, 2019. See Trader is not necessary or appropriate in NYSE Chicago Trades or NYSE Chicago Update, available here: https://www.nyse.com/ publicdocs/nyse/notifications/trader-update/ 10 See Securities Exchange Act Release No. 51808 Integrated Feed. The Exchange will NYSEChicago_Migration_update_9.4.pdf. (June 9, 2005), 70 FR 37496 (June 29, 2005) submit a proposed rule change should it 8 15 U.S.C. 78f(b). (Regulation NMS Adopting Release). determine to charge fees associated with 9 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78f(b)(8).

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furtherance of the purposes of the Act. C. Self-Regulatory Organization’s designates the proposed rule change Because other exchanges already offer Statement on Comments on the operative upon filing.27 similar products, the Exchange’s Proposed Rule Change Received From At any time within 60 days of the proposed NYSE Chicago Market Data Members, Participants, or Others filing of the proposed rule change, the Feeds will enhance competition. For Commission summarily may No written comments were solicited example, NYSE Chicago BBO would temporarily suspend such rule change if or received with respect to the proposed it appears to the Commission that such provide an alternative to NYSE Arca rule change. BBO,12 offered by the Exchange’s action is necessary or appropriate in the public interest, for the protection of affiliate, Arca, Inc. (‘‘NYSE Arca’’), III. Date of Effectiveness of the investors, or otherwise in furtherance of Nasdaq Basic,13 offered by The Nasdaq Proposed Rule Change and Timing for Commission Action the purposes of the Act. If the Stock Market, Inc. (‘‘Nasdaq’’), and Cboe Commission takes such action, the 14 Top, offered by Cboe Global Markets, Because the foregoing proposed rule Commission shall institute proceedings Inc. (‘‘Cboe’’). Additionally, NYSE change does not: (i) Significantly affect to determine whether the proposed rule Chicago Trades would provide an the protection of investors or the public change should be approved or alternative to NYSE Arca Trades,15 interest; (ii) impose any significant disapproved. offered by NYSE Arca, Nasdaq Basic,16 burden on competition; and (iii) become IV. Solicitation of Comments offered by Nasdaq, and Cboe Last Sale,17 operative for 30 days from the date on offered by Cboe. Finally, NYSE Chicago which it was filed, or such shorter time Interested persons are invited to Integrated Feed would provide an as the Commission may designate, it has submit written data, views, and alternative to NYSE Arca Integrated become effective pursuant to Section arguments concerning the foregoing, Feed,18 offered by NYSE Arca, Nasdaq 19(b)(3)(A) of the Act 22 and Rule 19b– including whether the proposed rule TotalView-Itch,19 offered by Nasdaq, 4(f)(6) thereunder.23 change is consistent with the Act. and Cboe Depth,20 offered by Cboe. Comments may be submitted by any of A proposed rule change filed the following methods: The NYSE Chicago Market Data Feeds pursuant to Rule 19b-4(f)(6) under the provide investors with new options for Act 24 normally does not become Electronic Comments receiving market data, which was a operative for 30 days after the date of its • Use the Commission’s internet primary goal of the market data filing. However, Rule 19b–4(f)(6)(iii) 25 comment form (http://www.sec.gov/ amendments adopted by Regulation permits the Commission to designate a rules/sro.shtml); or NMS.21 shorter time if such action is consistent • Send an email to rule-comments@ with the protection of investors and the sec.gov. Please include File Number SR– public interest. The Exchange has NYSECHX–2019–15 on the subject line. 12 See NYSE Arca BBO, https://www.nyse.com/ requested that the Commission waive market-data/real-time/bbo (provides best bid/ask the 30-day operative delay so that the Paper Comments quotations for all traded securities). proposed rule change may become • Send paper comments in triplicate 13 See Nasdaq Basic, http:// operative upon filing. The Exchange to Secretary, Securities and Exchange www.nasdaqtrader.com/ Commission, 100 F Street NE, Trader.aspx?id=nasdaqbasic (provides Best Bid and asserts that waiver of the operative Offer and Last Sale Information). delay would be consistent with the Washington, DC 20549–1090. 14 See Cboe Top, https://markets.cboe.com/us/ protection of investors and the public All submissions should refer to File equities/market_data_products/ (provides real-time interest because it would allow the Number SR–NYSECHX–2019–15. This top-of-book quotations, matched trade price, Exchange to provide the NYSE Chicago file number should be included on the volume and execution time). Market Data Feeds when it migrates to subject line if email is used. To help the 15 See NYSE Arca Trades, https://www.nyse.com/ the Pillar platform. The Exchange notes Commission process and review your market-data/real-time/trades (provides real-time that it has previously announced that, comments more efficiently, please use Last Sale information for all traded securities). subject to rule approvals, it will only one method. The Commission will 16 See Nasdaq Basic, http:// transition to Pillar on November 4, post all comments on the Commission’s www.nasdaqtrader.com/ Trader.aspx?id=nasdaqbasic (provides Best Bid and 2019. The Exchange will provide the internet website (http://www.sec.gov/ Offer and Last Sale Information). NYSE Chicago Market Data Feeds free of rules/sro.shtml). Copies of the 17 See Cboe Last Sale, https://markets.cboe.com/ charge and they are comparable to feeds submission, all subsequent us/equities/market_data_products/ (provides real- provided by other national securities amendments, all written statements time matched trade price, volume and execution exchanges.26 Therefore, the Commission with respect to the proposed rule time). believes that waiver of the 30-day change that are filed with the 18 See NYSE Arca Integrated Feed, https:// operative delay is consistent with the Commission, and all written www.nyse.com/market-data/real-time/integrated- protection of investors and the public communications relating to the feed (provides a comprehensive order-by-order interest. Accordingly, the Commission proposed rule change between the view of events in the equities market, including Commission and any person, other than depth of book, trades, order imbalance data, and hereby waives the operative delay and security status messages). those that may be withheld from the 19 See Nasdaq TotalView-ITCH, http:// 22 15 U.S.C. 78s(b)(3)(A). public in accordance with the www.nasdaqtrader.com/Trader.aspx?id=Totalview2 23 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– provisions of 5 U.S.C. 552, will be (displays the full order book depth for Nasdaq 4(f)(6)(iii) requires a self-regulatory organization to available for website viewing and market participants and also disseminates the Net give the Commission written notice of its intent to printing in the Commission’s Public Order Imbalance Indicator (NOII) for the Nasdaq file the proposed rule change, along with a brief description and text of the proposed rule change, Reference Room, 100 F Street NE, Opening and Closing Crosses and Nasdaq IPO/Halt at least five business days prior to the date of filing Washington, DC 20549 on official Cross). of the proposed rule change, or such shorter time 20 See Cboe Depth, https://markets.cboe.com/us/ as designated by the Commission. The Exchange 27 _ _ For purposes only of waiving the 30-day equities/market data products/ (provides real-time, has satisfied this requirement. operative delay, the Commission also has depth-of-book quotations and execution 24 17 CFR 240.19b–4(f)(6). considered the proposed rule’s impact on information). 25 17 CFR 240.19b–4(f)(6)(iii). efficiency, competition, and capital formation. See 21 See supra note 6 [sic], at 37503. 26 See supra Section II.B. 15 U.S.C. 78c(f).

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business days between the hours of (‘‘Act’’),1 and Rule 19b–4 thereunder,2 forth in sections A, B, and C below, of 10:00 a.m. and 3:00 p.m. Copies of the notice is hereby given that on October the most significant aspects of such filing also will be available for 10, 2019, Nasdaq ISE, LLC (‘‘ISE’’ or statements. inspection and copying at the principal ‘‘Exchange’’) filed with the Securities office of the Exchange. All comments and Exchange Commission (‘‘SEC’’ or A. Self-Regulatory Organization’s received will be posted without change. ‘‘Commission’’) the proposed rule Statement of the Purpose of, and Persons submitting comments are change as described in Items I and II, Statutory Basis for, the Proposed Rule cautioned that we do not redact or edit below, which Items have been prepared Change personal identifying information from by the Exchange. The Commission is 1. Purpose comment submissions. You should publishing this notice to solicit submit only information that you wish comments on the proposed rule change The purpose of the proposed rule to make available publicly. All from interested persons. change is to amend the qualifications for submissions should refer to File I. Self-Regulatory Organization’s Market Makers to achieving Market Number SR–NYSECHX–2019–15, Maker Plus status. andshould be submitted on or before Statement of the Terms of Substance of November 19, 2019. the Proposed Rule Change The Exchange initially filed the proposed pricing changes on October 1, For the Commission, by the Division of The Exchange proposes to amend the Trading and Markets, pursuant to delegated Exchange’s Market Maker Plus program 2019 (SR–ISE–2019–25). On October 10, authority.28 under Options 7, Section 3. 2019, the Exchange withdrew that filing Jill M. Peterson, The text of the proposed rule change and submitted this filing. Assistant Secretary. is available on the Exchange’s website at As set forth in Section 3 of the Pricing [FR Doc. 2019–23546 Filed 10–28–19; 8:45 am] http://ise.cchwallstreet.com/, at the Schedule, the Exchange operates a BILLING CODE 8011–01–P principal office of the Exchange, and at Market Maker Plus program for regular the Commission’s Public Reference orders in Select Symbols 3 that provides Room. the below tiered rebates to Market SECURITIES AND EXCHANGE II. Self-Regulatory Organization’s Makers 4 based on time spent quoting at COMMISSION Statement of the Purpose of, and the National Best Bid or National Best [Release No. 34–87390; File No. SR–ISE– Statutory Basis for, the Proposed Rule Offer (‘‘NBBO’’). This program is 2019–26] Change designed to reward Market Makers that contribute to market quality by Self-Regulatory Organizations; Nasdaq In its filing with the Commission, the Exchange included statements maintaining tight markets in Select ISE, LLC; Notice of Filing and Symbols. Immediate Effectiveness of a Proposed concerning the purpose of and basis for Rule Change To Amend the Market the proposed rule change and discussed Maker Plus Program any comments it received on the proposed rule change. The text of these October 23, 2019. statements may be examined at the Pursuant to Section 19(b)(1) of the places specified in Item IV below. The Securities Exchange Act of 1934 Exchange has prepared summaries, set

SELECT SYMBOLS OTHER THAN SPY, QQQ, IWM, AMZN, FB, AND NVDA

Market Maker Plus tier (specified percentage) Maker rebate

Tier 1 (80% to less than 85%) ...... ($0.15) Tier 2 (85% to less than 95%) ...... (0.18) Tier 3 (95% or greater) ...... (0.22)

SPY, QQQ, AND IWM

Market Maker Plus tier (specified percentage) Regular Linked Maker rebate Maker rebate 5

Tier 1 (70% to less than 80%) ...... ($0.00) N/A Tier 2 (80% to less than 85%) ...... (0.18) (0.15) Tier 3 (85% to less than 90%) ...... (0.22) (0.19) Tier 4 (90% or greater) ...... (0.26) (0.23)

28 17 CFR 200.30–3(a)(12). members that maintain tight markets in those applicable tier in that symbol but achieves the tier 1 15 U.S.C. 78s(b)(1). symbols are eligible for higher regular maker rebates (i.e., any of Market Maker Plus Tiers 2–4) for any 2 17 CFR 240.19b–4. and may also be eligible for linked maker rebates, badge/suffix combination in the other linked as shown in the table above. Specifically, the 3 ‘‘Select Symbols’’ are options overlying all symbol, in which case the higher tier achieved following symbols are linked for purposes of the symbols listed on the Nasdaq ISE that are in the applies to both symbols. If a Market Maker would linked maker rebate: (1) SPY and QQQ, and (2) SPY qualify for a linked maker rebate in SPY based on Penny Pilot Program. and IWM. Market Makers that qualify for Market 4 The term ‘‘Market Makers’’ refers to Maker Plus Tiers 2–4 above for executions in SPY, the tier achieved in QQQ and the tier achieved in ‘‘Competitive Market Makers’’ and ‘‘Primary Market QQQ, or IWM may be eligible for a linked maker IWM then the higher of the two linked maker Makers’’ collectively. See Options 1, Section rebate in a linked symbol in addition to the regular rebates will be applied to SPY. The regular maker 1(a)(20). maker rebate for the applicable tier. The linked rebate will be provided in the symbol that qualifies 5 To encourage Market Makers to maintain quality maker rebate applies to executions in SPY, QQQ, the Market Maker for the higher tier based on markets in SPY, QQQ, and IWM in particular, or IWM if the Market Maker does not achieve the percentage of time at the NBBO.

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AMZN, FB, AND NVDA

Market Maker Plus tier (specified percentage) Maker rebate 6

Tier 1 (70% to less than 85%) ...... ($0.15) Tier 2 (85% to less than 95%) ...... (0.18) Tier 3 (95% or greater) ...... (0.22)

Market Makers are evaluated each calculating whether a Market Maker qualifications in SPY for at least 4 out trading day for the percentage of time qualifies for this rebate.8 of the previous six months. spent on the NBBO for qualifying series While the Exchange believes that the Applicability to and Impact on that expire in two successive thirty Market Maker Plus program has been Participants calendar day periods beginning on that successful overall in encouraging better trading day. A Market Maker Plus is a market quality in Select Symbols, the With the proposed changes, the Market Maker who is on the NBBO a Exchange has also observed that in Exchange seeks to avoid penalizing specified percentage of the time on extremely volatile months, Market historically strong Market Maker Plus average for the month based on daily Makers are less likely to meet the program participants in similar performance in the qualifying series for stringent Market Maker Plus tier situations as the one outlined above, each of the two successive periods qualifications for that month because thereby easing the burden on Market described above. Qualifying series are they are unable to hit the tiers as easily. Makers to maintain their Market Maker series trading between $0.03 and $3.00 The Exchange therefore proposes to Plus qualification, which ultimately will (for options whose underlying stock’s change its Market Maker Plus fortify its Market Maker Plus program. previous trading day’s last sale price qualifications to avoid penalizing Of course, the Market Maker would still was less than or equal to $100) and Market Makers that have historically need to meet the stringent requirements between $0.10 and $3.00 (for options contributed to market quality on the of the applicable Market Maker Plus 10 whose underlying stock’s previous Exchange. In particular, the Exchange Tier 2 qualifications at least four of trading day’s last sale price was greater proposes that a Market Maker who the six previous months in order to than $100) in premium. If a Market qualifies for Market Maker Plus Tiers 2 glean the benefits of the reduced rebate Maker would qualify for a different or higher in at least four of the previous proposed above. The Market Maker Market Maker Plus tier in each of the six months will be eligible to receive a would also need to meet the rigorous two successive 30 calendar day periods, reduced Tier 2 rebate in a given month Tier 2 qualifications each month going then the lower of the two Market Maker where the Market Maker does not forward to maintain the four-month Plus tier rebates shall apply to all qualify for any Market Maker Plus cushion in order to gather the proposed contracts.7 A Market Maker’s worst Tiers.9 This rebate will be the applicable rebate benefits. By fortifying quoting day each month for each of the Tier 2 rebate reduced by $0.08 per participation in this program, the two successive periods described above, contract (i.e., $0.10 per contract for the Exchange believes that the proposed on a per symbol basis, is excluded in regular maker rebate or $0.07 per changes will continue to encourage contract for the linked maker rebate). Market Makers to post tight markets in 6 Market Makers that qualify for Market Maker For example, Market Maker 1 (‘‘MM Select Symbols, thereby improving Plus Tiers 1–3 above for executions in two out of 1’’) meets the SPY Market Maker Plus trading conditions for all market the three symbols AMZN, FB, or NVDA will be participants through narrower bid-ask eligible for a maker rebate in the third symbol, in Tier 2 level in all of the previous 6 addition to the maker rebate for the applicable tier months. In the current month, there is spreads and increased depth of liquidity in the other two symbols. The maker rebate will a significant increase in volatility and available at the inside market. apply to executions in AMZN, FB, or NVDA if the Market Maker does not achieve the applicable tier MM 1 is unable to meet the stringent 2. Statutory Basis in that symbol but achieves the tier (i.e., any of Market Maker Plus requirements within The Exchange believes that its Market Maker Plus Tiers 1–3) for any badge/suffix the month. With the proposal, MM 1 proposal is consistent with Section 6(b) combination in the other two symbols. If a Market would receive a reduced rebate of $0.10 Maker would qualify for different Market Maker of the Act,11 in general, and furthers the Plus Tiers 1–3 in two symbols, then the lower of per contract (i.e., the SPY Tier 2 $0.18 objectives of Sections 6(b)(4) and 6(b)(5) the two maker rebates will be applied to the third per contract rebate reduced by $0.08 per of the Act,12 in particular, in that it symbol (e.g., Market Maker Plus qualification in contract) in the current month based on provides for the equitable allocation of Tier 1 and Tier 2 across two symbols would earn meeting the Market Maker Plus Tier 2 Market Maker Plus Tier 1 in the third symbol). If reasonable dues, fees, and other charges all three symbols separately achieve any of the among members and issuers and other Market Maker Plus Tiers 1–3, the symbol that 8 In addition, the Exchange may exclude from any achieves the tier with the lowest maker rebate will member’s monthly Market Maker Plus tier persons using any facility, and is not instead receive the same maker rebate as the symbol calculation any Unanticipated Event; provided that designed to permit unfair that achieved the next lowest tier. the Exchange will only remove the day for members discrimination between customers, 7 Market Makers may enter quotes in a symbol that would have a lower time at the NBBO for the issuers, brokers, or dealers. using one or more unique, exchange assigned specified series with the day included. See Options The Exchange believes that the identifiers—i.e., badge/suffix combinations. Market 7, Section 1(a)(2) for the definition of Maker Plus status is calculated independently ‘‘Unanticipated Event.’’ proposed changes to its Market Maker based on quotes entered in a symbol for each of the 9 Except in SPY, QQQ, and IWM, if a Market Plus program is reasonable and Market Maker’s badge/suffix combinations, and the Maker qualifies for Market Maker Plus Tier 1 in a equitable for several reasons. As a highest tier achieved for any badge/suffix given month after qualifying for Tier 2 or higher in threshold matter, the Exchange is combination quoting that symbol applies to at least four of the previous six months, the Market executions across all badge/suffix combinations that Maker would receive the higher $0.15 per contract the member uses to trade in that symbol. Only Tier 1 rebate for that month instead of a reduced 10 Thus, a Market Maker would need to be on the badge/suffix combinations quoting a minimum of Tier 2 rebate of $0.10 per contract. Today, the NBBO at least 80% of the time (i.e., Tier 2 or higher) ten trading days within the month will be used to Exchange does not provide any rebates to Market for SPY, QQQ, and IWM, and at least 85% of the determine whether the Market Maker Plus status Makers for meeting the Market Maker Plus Tier 1 time for all other Select Symbols. has been met and the specific tier to be applied to qualifications in SPY, QQQ IWM. See Options 7, 11 15 U.S.C. 78f(b). the Market Maker’s performance for that month. Section 3, note 5. 12 15 U.S.C. 78f(b)(4) and (5).

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subject to significant competitive forces spent quoting at the NBBO. The rebate that a Market Maker would in the market for options transaction Exchange proposes to provide the normally receive while still providing services that constrain its pricing reduced rebate to Market Makers that enough of a cushion that avoids determinations in that market. The fact qualified for Market Maker Plus Tier 2 penalizing historically strong Market that this market is competitive has long or higher in the requisite time period as Maker Plus program participants. been recognized by the courts. In opposed to Market Maker Plus Tier 1 Accordingly, the Exchange believes NetCoalition v. Securities and Exchange because Tier 1 currently does not that its proposal is reasonable and Commission, the D.C. Circuit stated as provide rebates to qualifying Market equitable because the modified criteria follows: ‘‘[n]o one disputes that Makers across all Select Symbols.14 will continue to require Market Makers competition for order flow is ‘fierce.’ As discussed above, the Exchange has to quote significantly at the NBBO, . . . As the SEC explained, ‘[i]n the U.S. observed that in extremely volatile thereby continuing to contribute to national market system, buyers and months, Market Makers are less likely to market quality in a meaningful way. In sellers of securities, and the broker- meet the stringent Market Maker Plus fact, with the proposed changes, the dealers that act as their order-routing tier qualifications for that month Exchange will fortify participation in agents, have a wide range of choices of because they are unable to hit the tiers the Market Maker Plus program by where to route orders for execution’; as easily. For example, the Exchange helping ensure that historically strong [and] ‘no exchange can afford to take its observed a decrease in Market Maker program participants continue to market share percentages for granted’ Plus program participation concurrent participate and qualify as Market Maker because ‘no exchange possesses a with increased volatility in August Plus, which will further improve market monopoly, regulatory or otherwise, in 2019. In particular, in July 2019, around quality. the execution of order flow from broker 41% of the total number of ISE Market The Exchange believes that the dealers’....’’13 Makers had qualified for Market Maker proposed changes to the qualifications Numerous indicia demonstrate the Plus Tier 2 in any Select Symbol. In to Market Maker Plus are not unfairly competitive nature of this market. For August 2019, the Exchange saw this discriminatory as all Market Makers will example, clear substitutes to the percentage drop to less than 30%. Had be subject to the same qualification Exchange exist in the market for options the proposed changes been in place for criteria for Market Maker Plus. The transaction services. The Exchange is August 2019, around 47% of all ISE Exchange also continues to believe that only one of sixteen options exchanges to Market Makers would have qualified for it is not unfairly discriminatory to offer which market participants may direct Tier 2 using the 6-month look-back rebates under this program to only their order flow. Within this period. Given the foregoing, the Market Makers. Market Makers, and in environment, market participants can Exchange seeks to avoid penalizing particular, those Market Makers that freely and often do shift their order flow Market Makers that have historically participate in the Market Maker Plus among the Exchange and competing been strong participants in the Program and achieve Market Maker Plus venues in response to changes in their Exchange’s Market Maker Plus program status, add value through continuous respective pricing schedules. by easing the burden on these Market quoting and are subject to additional Within the foregoing context, the Makers to maintain their Market Maker requirements and obligations (such as proposal represents a reasonable Plus qualification. quoting obligations) that other market attempt by the Exchange to increase its The Exchange believes that the participants are not. Finally, the liquidity and market share relative to its proposed ‘‘lookback’’ period of at least Exchange believes that the proposed competitors. As noted above, the four out of the previous six months is changes will continue to encourage Exchange’s proposal is intended to an appropriate measure of strong past Market Makers to post tight markets in fortify participation in the Market Maker performance in the Market Maker Plus Select Symbols, thereby increasing Plus program, which the Exchange program as it requires Market Makers to liquidity and attracting additional order believes has been successful overall in meet the stringent requirements of flow to the Exchange, which benefits all encouraging better market quality in Market Maker Plus Tier 2 or higher for market participants in the quality of a significant period of time in order to order interaction. Select Symbols. The Exchange believes 15 that further encouraging Market Makers receive the reduced rebates. Furthermore, the Market Maker would B. Self-Regulatory Organization’s to maintain tight markets in Select Statement on Burden on Competition Symbols will increase liquidity and also need to meet the rigorous Tier 2 The Exchange does not believe that attract additional order flow to the qualifications each month going forward the proposed rule change will impose Exchange, which benefits all market to maintain the four month cushion in any burden on competition not participants in the quality of order order to glean the proposed rebate necessary or appropriate in furtherance interaction. benefits. The Exchange also believes the proposed reduction of the applicable of the purposes of the Act. In particular, the Exchange’s proposal 16 to provide a reduced rebate to Market Tier 2 rebate by $0.08 per contract is Intra-Market Competition Makers who do not qualify for any set at an appropriate level that is lower than any Market Maker Plus tiered The proposed amendments to the Market Maker Plus tiers in a given Exchange’s Market Maker Plus program month, but qualified for Market Maker 14 In particular, Market Makers that qualify for described above do not impose an Plus Tier 2 or higher in at least four of Market Maker Plus Tier 1 in SPY, QQQ or IWM undue burden on intra-market the previous six months preserves the currently do not receive any rebates, so it would not competition. While the proposal would intent of the Market Maker Plus program be feasible to apply the proposed reduction of $0.08 to those symbols at the Tier 1 level. apply directly to those Market Makers to reward Market Makers who that achieve the Market Maker Plus Tier contribute to market quality by 15 See supra note 10. 16 Thus, with the proposed changes, the reduced 2 standards described above, the maintaining tight markets based on time rebate would be $0.10 per contract for the regular Exchange believes that the proposed maker rebate (i.e., the $0.18 per contract regular changes will fortify and encourage 13 NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Tier 2 maker rebate reduced by $0.08 per contract), Cir. 2010) (quoting Securities Exchange Act Release and $0.07 per contract for the linked maker rebate participation in the Market Maker Plus No. 59039 (December 2, 2008), 73 FR 74770, 74782– (i.e., the $0.15 per contract linked Tier 2 maker program, ultimately to the benefit of all 83 (December 9, 2008) (SR–NYSEArca–2006–21)). rebate reduced by $0.08 per contract). market participants. As discussed

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above, the Exchange believes that the III. Date of Effectiveness of the Washington, DC 20549, on official proposed changes will continue to Proposed Rule Change and Timing for business days between the hours of encourage all Market Makers to improve Commission Action 10:00 a.m. and 3:00 p.m. Copies of the market quality by providing significant The foregoing rule change has become filing also will be available for quoting at the NBBO in Select Symbols, effective pursuant to Section 19(b)(3)(A) inspection and copying at the principal which in turn improves trading of the Act 17 and paragraph (f)(2) of Rule office of the Exchange. All comments conditions for all market participants 19b-4 thereunder.18 At any time within received will be posted without change. through narrower bid-ask spreads and 60 days of the filing of the proposed rule Persons submitting comments are increased depth of liquidity available at change, the Commission summarily may cautioned that we do not redact or edit personal identifying information from the inside market, thereby attracting temporarily suspend such rule change if comment submissions. You should additional order flow to the Exchange. it appears to the Commission that such submit only information that you wish For these reasons, the Exchange does action is necessary or appropriate in the public interest, for the protection of to make available publicly. All not believe that its proposal will place submissions should refer to File any category of Exchange market investors, or otherwise in furtherance of the purposes of the Act. If the Number SR–ISE–2019–26 and should be participant at a competitive submitted on or before November 19, disadvantage. Commission takes such action, the Commission shall institute proceedings 2019. Inter-Market Competition to determine whether the proposed rule For the Commission, by the Division of should be approved or disapproved. Trading and Markets, pursuant to delegated The proposed changes are designed to authority.19 ensure that the goals of the Exchange’s IV. Solicitation of Comments Jill M. Peterson, Market Maker Plus program are Interested persons are invited to Assistant Secretary. furthered by fortifying participation in submit written data, views, and [FR Doc. 2019–23547 Filed 10–28–19; 8:45 am] the program and to avoid penalizing arguments concerning the foregoing, BILLING CODE 8011–01–P Market Makers that have historically including whether the proposed rule made quality markets in Select Symbols change is consistent with the Act. for a significant amount of time. The Comments may be submitted by any of SECURITIES AND EXCHANGE Exchange operates in a highly the following methods: COMMISSION competitive market in which market Electronic Comments [Release No. 34–87386; File No. SR–OCC– participants can readily favor competing • Use the Commission’s internet 2019–009] venues if they deem fee levels at a comment form (http://www.sec.gov/ particular venue to be excessive, or Self-Regulatory Organizations; The rules/sro.shtml); or Options Clearing Corporation; Notice rebate opportunities available at other • Send an email to rule-comments@ of Filing of Proposed Rule Change venues to be more favorable. In such an sec.gov. Please include File Number SR– Related to Proposed Changes to The environment, the Exchange must ISE–2019–26 on the subject line. Options Clearing Corporation’s Rules, continually adjust its fees and rebates to Paper Comments Clearing Fund Methodology Policy, remain competitive. Because • Send paper comments in triplicate and Clearing Fund and Stress Testing competitors are free to modify their own Methodology fees in response, and because market to Secretary, Securities and Exchange participants may readily adjust their Commission, 100 F Street NE, October 23, 2019. order routing practices, the Exchange Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the believes that the degree to which fee All submissions should refer to File Securities Exchange Act of 1934 changes in this market may impose any Number SR–ISE–2019–26. This file (‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule burden on competition is extremely number should be included on the 19b–4 thereunder,2 notice is hereby subject line if email is used. To help the limited. Moreover, as noted above, price given that on October 10, 2019, the Commission process and review your competition between exchanges is Options Clearing Corporation (‘‘OCC’’) comments more efficiently, please use fierce, with liquidity and market share filed with the Securities and Exchange only one method. The Commission will Commission (‘‘Commission’’) the moving freely between exchanges in post all comments on the Commission’s reaction to fee and rebate changes. In proposed rule change as described in internet website (http://www.sec.gov/ Items I, II, and III below, which Items sum, if the changes proposed herein are rules/sro.shtml). Copies of the have been prepared primarily by OCC. unattractive to market participants, it is submission, all subsequent The Commission is publishing this likely that the Exchange will lose amendments, all written statements notice to solicit comments on the market share as a result. Accordingly, with respect to the proposed rule proposed rule change from interested the Exchange does not believe that the change that are filed with the persons. proposed changes will impair the ability Commission, and all written of members or competing order communications relating to the I. Clearing Agency’s Statement of the execution venues to maintain their proposed rule change between the Terms of Substance of the Proposed competitive standing in the financial Commission and any person, other than Rule Change markets. those that may be withheld from the The proposed rule change is filed in public in accordance with the connection with proposed C. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be enhancements to OCC’s Clearing Fund Statement on Comments on the available for website viewing and and stress testing rules and Proposed Rule Change Received From printing in the Commission’s Public methodology designed to: (1) Members, Participants, or Others Reference Room, 100 F Street NE, 19 17 CFR 200.30–3(a)(12). No written comments were either 17 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). solicited or received. 18 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4.

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Incorporate a new set of stress test and (C) below, of the most significant methods (e.g., draws from estimated scenarios to be used in the monthly aspects of these statements. multivariate distributions) or created sizing of OCC’s Clearing Fund that are based on a mix of statistical techniques A. Clearing Agency’s Statement of the designed to capture the risks of extreme and expert judgment (e.g., a 15% Purpose of, and Statutory Basis for, the decline in market prices and 50% moves in individual or small subsets of Proposed Rule Change securities; (2) enhance OCC’s stress increase in volatility). These scenarios testing methodology for modeling 1. Purpose give OCC the ability to change the certain volatility index futures; (3) Background distribution and level of stress in ways modify OCC’s methodology for necessary to produce an effective allocating Clearing Fund contribution In September 2018, OCC implemented forward-looking stress testing requirements to standardize the margin new rules for sizing and monitoring its methodology. OCC uses these pre- Clearing Fund and overall Pre-Funded determined stress scenarios in stress risk component of the allocation 6 formula for all Clearing Members; (4) Financial Resources, which included tests, conducted on a daily basis, to the adoption of a new Policy and determine OCC’s risk exposure to each adopt an additional threshold for 7 notifying senior management of intra- Methodology Description. Under the Clearing Member Group by simulating day margin calls based on certain stress requirements of the Policy, OCC bases the profits and losses of the positions in test results; (5) correct certain rules its determination of the Clearing Fund their respective account portfolios concerning OCC’s cooling-off period size on the results of stress tests under each such stress scenario. conducted daily using standard and replenishment/assessment powers; Under the Policy and Methodology predetermined parameters and and (6) make other clarifying and Description, OCC performs daily stress assumptions. These daily stress tests conforming changes to OCC’s Rules, testing using a wide range of scenarios, consider a range of relevant stress Clearing Fund Methodology Policy both Hypothetical and Historical, scenarios and possible price changes in (‘‘Policy’’), and Stress Testing and designed to serve multiple purposes. liquidation periods, including but not Clearing Fund Methodology Description OCC’s proposed stress testing inventory limited to: (1) Relevant peak historic (‘‘Methodology Description’’) contains scenarios designed to: (1) price volatilities; (2) shifts in other The proposed amendments to OCC’s Determine whether the financial market factors including, as appropriate, Rules can be found in Exhibit 5A.3 resources collected from all Clearing price determinants and yield curves; Proposed changes to the Policy can be Members collectively are adequate to and (3) the default of one or multiple cover OCC’s risk tolerance (‘‘Adequacy found in Exhibit 5B. Proposed changes Clearing Members. OCC also conducts to the Methodology Description can be Scenarios,’’ and such scenarios reverse stress tests for informational collectively constituting ‘‘Adequacy found in Exhibit 5C. Material proposed purposes aimed at identifying extreme to be added to the Rules, Policy, and Stress Tests’’); (2) establish the monthly default scenarios and extreme market size of the Clearing Fund necessary for Methodology Description as currently in conditions for which the OCC’s effect is marked by underlining, and OCC to maintain sufficient Pre-Funded financial resources may be insufficient. Financial Resources to cover losses material proposed to be deleted is As described in the Methodology marked in strikethrough text.4 The arising from the default of the two Description, the newly adopted Clearing Member Groups that would proposed changes are described in methodology includes two types of detail in Item II below. potentially cause the largest aggregate scenarios: ‘‘Historical Scenarios’’ and credit exposure to OCC as a result of a The proposed rule change is available ‘‘Hypothetical Scenarios.’’ Historical on OCC’s website at https:// 1-in-80 year hypothetical market event Scenarios intend to replicate historical (‘‘Sizing Scenarios,’’ and such scenarios www.theocc.com/about/publications/ events in current market conditions, collectively constituting ‘‘Sizing Stress bylaws.jsp. All terms with initial which includes the set of currently Tests’’); (3) measure the exposure of the capitalization that are not otherwise existing securities, their prices, and Clearing Fund to the portfolios of defined herein have the same meaning volatility levels. These scenarios individual Clearing Member Groups, as set forth in the OCC By-Laws and provide OCC with information regarding 5 and determine whether any such Rules. pre-defined reference points determined exposure is sufficiently large as to to be relevant benchmarks for assessing II. Clearing Agency’s Statement of the necessitate OCC calling for additional OCC’s exposure to Clearing Members Purpose of, and Statutory Basis for, the resources so that OCC continues to and the adequacy of its financial Proposed Rule Change maintain sufficient financial resources resources. Hypothetical Scenarios to guard against potential losses under In its filing with the Commission, represent events in which market a wide range of stress scenarios, OCC included statements concerning conditions change in ways that have not including extreme but plausible market the purpose of and basis for the yet been observed. The Hypothetical conditions (‘‘Sufficiency Scenarios,’’ proposed rule change and discussed any Scenarios are derived using statistical comments it received on the proposed and such scenarios collectively rule change. The text of these statements 6 The Policy defines OCC’s ‘‘Pre-Funded constituting ‘‘Sufficiency Stress 8 may be examined at the places specified Financial Resources’’ to mean margin of the Tests’’); and (4) monitor and assess the in Item IV below. OCC has prepared defaulted Clearing Member and the required summaries, set forth in sections (A), (B), Clearing Fund less any deficits, exclusive of OCC’s 8 Under OCC Rule 609, the Policy, and the assessment powers. Methodology Description, if a Sufficiency Stress 7 On July 26, 2018, the Commission issued a Test identifies exposures that exceed 75% of the 3 The Commission notes that exhibits referenced Notice of No Objection to an advance notice by OCC current Clearing Fund requirement less deficits (the herein are included in the filing submitted by OCC concerning the adoption of a new stress testing and ‘‘75% threshold’’ or ‘‘Sufficiency Stress Test to the Commission, but are not included in this Clearing Fund methodology. See Securities Threshold 1’’), OCC may require additional margin Notice. Exchange Act Release No. 83714 (July 26, 2018), 83 deposits from the Clearing Member Group(s) 4 OCC also has filed an advance notice with the FR 37570 (August 1, 2018) (SR–OCC–2018–803). On driving the breach. All such margin calls must be Commission in connection with the proposed July 27, 2018, the Commission approved a proposed approved by a Vice President (or higher) of OCC’s changes. See SR–OCC–2019–806. rule change by OCC concerning the same proposal. Financial Risk Management department (‘‘FRM’’); 5 OCC’s By-Laws and Rules can be found on See Securities Exchange Act Release No. 83735 however, if the margin call imposed on an OCC’s public website: http://optionsclearing.com/ (July 27, 2018), 83 FR 37855 (August 2, 2018) (SR– individual Clearing Member exceeds $500 million, about/publications/bylaws.jsp. OCC–2018–008). OCC’s Stress Testing and Liquidity Risk

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size of OCC’s Pre-Funded Financial and replenishment/assessment powers; Scenarios and the probability in all four Resources against a wide range of stress and (6) making certain other clarifying scenarios would be approximately scenarios that may include extreme but and conforming changes to OCC’s Rules, equal. The profit and loss (P/L) implausible and reverse stress testing Policy, and Methodology Description. contribution for each name is then scenarios (‘‘Informational Scenarios,’’ The proposed changes are described in calculated for the portfolio using both and such scenarios collectively detail below. up and down moves, and the worst loss constituting ‘‘Informational Stress 1. Introduction of Idiosyncratic from the two P/L moves is chosen as the Tests’’).9 Scenarios in Sizing Stress Tests direction of the idiosyncratic move for In addition, under the Rules, Policy, each name. Next, the four names with and Methodology Description, OCC proposes to revise its Policy and the worst P/L (along with the direction individual Clearing Members’ Clearing Methodology Description to incorporate of extreme move) are chosen for the Fund contribution requirements are into its inventory of Sizing Stress Tests portfolio, providing the four names for determined using a risk-based allocation a new set of Idiosyncratic Scenarios that every portfolio within a Clearing methodology of 70% ‘‘total risk,’’ 15% are designed to capture the risks of Member Group. Then the risk exposure volume, and 15% open interest using a extreme moves in individual or small (P/L) is aggregated at the Clearing one-month look-back period. For subsets of securities. As noted above, Member Group-level using each set of purposes of allocating Clearing Fund OCC’s Sizing Stress Tests are used to four names. The worst shortfall contributions, ‘‘total risk’’ is defined to establish the monthly size of the generated is the idiosyncratic risk of the mean the margin requirement calculated Clearing Fund necessary for OCC to Clearing Member Group, and the largest and reported by OCC with respect to all maintain sufficient Pre-Funded two Clearing Member Group exposures accounts of a Clearing Member less the Financial Resources to cover losses are used to determine the Cover 2 net asset value of the positions in such arising from the default of the two Idiosyncratic Scenario Clearing Fund accounts aggregated across all such Clearing Member Groups that would size. accounts. potentially cause the largest aggregate OCC believes that implementing the credit exposure to OCC in extreme but Proposed Changes proposed Idiosyncratic Scenarios would plausible market conditions. The enhance OCC’s stress testing OCC proposes to enhance its Clearing proposed Idiosyncratic Scenarios would methodology and overall resiliency by Fund and stress testing framework by: supplement OCC’s current set of Sizing providing a more comprehensive suite (1) Adopting a new set of stress Scenarios (which are generally designed of Sizing Stress Tests to ensure that OCC scenarios to be used in the monthly to estimate risk exposures arising from maintains an appropriate level of Pre- sizing of OCC’s Clearing Fund that are more broad-based market and systemic Funded Financial Resources to cover its designed to capture the risks of extreme shocks (‘‘Systemic Scenarios’’) and credit exposures under scenarios moves in individual or small subsets of would allow OCC to identify forward- addressing both systemic market risks securities (‘‘Idiosyncratic Scenarios’’); looking, non-systemic market events and idiosyncratic risks. (2) improving its model for determining that may impact its Pre-Funded price shocks for futures on the Cboe Financial Resource requirements. Like 2. Enhancements for Modeling Shocks Volatility Index (‘‘VIX’’) 10 (such futures other Sizing Scenarios, the proposed on VIX Futures contracts hereinafter referred to as ‘‘VIX Idiosyncratic Scenarios may be used to OCC also proposes to enhance its futures’’); (3) modifying the determine the monthly size of Clearing methodology for modeling price shocks Fund when projected exposures from methodology for allocating Clearing for VIX futures. Under OCC’s current the Idiosyncratic Scenarios are greater Fund contribution requirements to stress testing methodology, prices than OCC’s other Sizing Scenarios. standardize the margin risk component shocks for VIX futures are equivalent to of the allocation formula for all Clearing The proposed Idiosyncratic Scenarios are designed to capture the risk of the price shock for the underlying VIX Members; (4) adopting an additional index. OCC believes that this approach threshold for notifying senior extreme non-systemic market moves on single-name securities through is unrealistic in that it produces a management of certain intra-day margin uniform shock across expirations of the calls based on Sufficiency Stress Test individual rally and decline shocks. Under the proposed methodology for VIX futures contract, which leads to an results; (5) correcting certain rules overestimation of VIX futures price concerning OCC’s cooling-off period Idiosyncratic Scenarios, every single- name equity (i.e., excluding exchange- shocks, particularly in market decline scenarios. Futures contracts for different Management group (‘‘STLRM’’) must provide traded funds, exchange-traded notes, written notification to OCC’s Executive Chairman, indices, and non-equity products) in a expirations generally trade at different Chief Executive Officer, and Chief Operating Officer portfolio is shocked by a fixed extreme prices reflecting the differing future (collectively referred to as the ‘‘Office of the Chief idiosyncratic up and down move. In price expectations of the underlying Executive Officer’’ or ‘‘OCEO’’). Additionally, under asset.11 Accordingly, OCC believes that Rule 1001(c) (and as described in the Policy and order to determine these fixed shocks, Methodology Description), if a Sufficiency Stress single-name equities would be classified the size of the price shocks produced by Test were to identify a Clearing Fund Draw for any as either large or small capitalization its stress testing methodology should one or two Clearing Member Groups that exceed (referred to herein as ‘‘large cap’’ and 90% of the current Clearing Fund size (after 11 When there is a large shock to the VIX it has subtracting any monies deposited as a result of a ‘‘small cap,’’ respectively) and the consistently been observed that the change in price margin call in accordance with a breach of shocks would be constructed based on of near-term VIX future contracts is much larger Sufficiency Stress Test Threshold 1), OCC has the the market capitalization classification than for further out expirations. For instance, on 2/ authority to effect an intra-month resizing of the and direction of the price (e.g., the four 5/2018 when the near-term VIX future contract Clearing Fund to ensure that it continues to expiring on 2/16/2018 increased by 113% the maintain sufficient prefunded financial resources. potential idiosyncratic moves would be following standard expirations increased by less: See supra note 7. large cap up, large cap down, small cap 87% for 3/21/2018; 64% for 4/18/2018; 37% for 5/ 9 OCC notes that its Adequacy and Informational up, and small cap down. The fixed price 16/2018; and less than 30% for all further Stress Tests are not used to size the Clearing Fund shocks would be calibrated from expirations. For all other days within the past 5 or drive calls for additional financial resources. years with one-day VIX increases of over 45%, 10 The VIX is an index designed to measure the historical price return data such that the similar patterns were observed of a decreasing VIX 30-day expected volatility of the Standard & Poor’s probability of the idiosyncratic moves is future term structure of shocks (8/21/2015, 8/24/ 500 index (‘‘SPX’’). comparable to OCC’s Systemic Sizing 2015, 6/24/2016 and 5/17/2017).

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vary based on the expiration of each Members’ accounts (and thus their Policy and Methodology Description to contract as is more realistically observed allocations) are more heavily impacted reflect the new definition of ‘‘total risk.’’ in the market. by margin requirements calculated 4. New Sufficiency Stress Test OCC proposes to enhance its stress using the Standard Portfolio Analysis of Notification Threshold testing methodology (and specifically, Risk Margin Calculation System Section 3.4 of the Methodology (‘‘SPAN’’) that reflects customer gross OCC also proposes to adopt a new Description) by using SPX at-the-money margining, which may result in higher internal notification threshold for intra- implied volatility shocks across risk charges than net margining with day margin calls resulting from its different expirations to model forward STANS for the same account.16 Sufficiency Stress Tests. Under existing volatility to generate shocks for VIX OCC proposes to standardize the Rule 609, the Policy, and the futures contracts for the corresponding margin or ‘‘total risk’’ component of its Methodology Description, if a expirations. OCC believes the proposed Clearing Fund allocation formula for all Sufficiency Stress Test identifies a model enhancements would produce members by using only the STANS base Clearing Fund Draw 18 for any one or more appropriate VIX futures price amount, plus certain add-on charges 17 two Clearing Member Groups that shocks in its stress scenarios because it as may be determined by OCC pursuant exceeds Sufficiency Stress Test would produce differing price shocks to its policies and procedures. OCC Threshold 1, OCC is authorized to issue across the term structure as is generally believes it is more appropriate to use the a margin call against the Clearing observed in the market.12 For example, same margin risk measurement for all Member Group(s) and/or Clearing OCC has observed that VIX futures price Clearing Members/accounts when Member(s) causing the breach.19 All shocks obtained from the enhanced determining Clearing Fund allocations Sufficiency Stress Test margin calls are model for varying expirations is similar since this allows for a more equitable required to be approved by a Vice to the actual VIX futures market prices comparison across all accounts through President (or higher) of FRM; however, when tested on historical stress periods. the utilization of a consistent margin if the margin call imposed on an Additionally, because VIX futures are methodology. Accordingly, OCC individual Clearing Member exceeds used to calculate theoretical values for proposes to modify the definition of $500 million, the STLRM group must VIX options, OCC believes the proposed ‘‘total risk’’ in Rule 1003(b)(i) to mean provide written notification to the enhancement would improve the ‘‘a risk measure aggregated across all Office of the CEO. If the margin call pricing of both VIX futures and VIX accounts of a Clearing Member imposed on an individual Clearing options in OCC’s stress testing determined using the Corporation’s Member would exceed 100% an methodology. margin methodology and such add-on individual Clearing Member’s net charges as may be determined pursuant 3. Modifications to Clearing Fund capital, the issue is then escalated to the to the Corporation’s policies and Allocation Weighting Methodology Office of the CEO, and each of the procedures.’’ OCC also proposes to Executive Chairman, Chief Executive OCC proposes to modify its allocation make conforming to changes to its Officer, and Chief Operating Officer methodology for determining individual have the authority to determine whether Clearing Members’ Clearing Fund Securities Exchange Act Release No. 53322 OCC should continue calling for requirements. As part of OCC’s recently (February 15, 2006), 71 FR 9403 (February 23, 2006) additional margin in excess of this adopted stress testing and Clearing (SR–OCC–2004–20). A detailed description of the STANS methodology is available at http:// amount. Fund methodology, OCC moved to a optionsclearing.com/risk-management/margins/. OCC proposes to revise the Policy to more risk-based method for allocating 16 Pursuant to OCC Rule 601(e)(1), in additions to require that STLRM provide written 13 Clearing Fund requirements. Clearing STANS-based requirements, OCC calculates initial notification to the Office of the CEO margin requirements for segregated futures accounts Fund allocations are currently based on whenever a Sufficiency Stress Test a weighting of 70% margin risk, 15% on a gross basis using SPAN. Commodity Futures Trading Commission (‘‘CFTC’’) Rule 39.13(g)(8), margin call imposed on an individual open interest, and 15% cleared volume. requires, in relevant part, that derivatives clearing Clearing Member exceeds 75% of the The margin risk component of the organizations (‘‘DCOs’’) collect initial margin for Clearing Member’s excess net capital (in customer segregated futures accounts on a gross allocation formula, known as ‘‘total addition to the current requirement to risk,’’ is based on the total margin basis. While OCC uses SPAN to calculate initial margin requirements for segregated futures accounts provide notification for any margin call requirement calculated and reported by on a gross basis, OCC believes that margin exceeding $500 million). OCC believes OCC with respect to all accounts of a requirements calculated on a net basis (i.e., permitting offsets between different customers’ that this additional notification Clearing Member less the net asset value requirement is appropriate because it of the positions in such accounts positions held by a Clearing Member in a segregated futures account using STANS) affords OCC will allow OCC’s senior management to aggregated across all such accounts over additional protections at the clearinghouse level be informed as soon as practicable of, a one-month look-back period compared against risks associated with liquidating a Clearing and to subsequently monitor, to the aggregate of total risk across all Member’s segregated futures account. As a result, circumstances where a margin call may Clearing Members.14 While the majority OCC calculates margin requirements for segregated futures accounts using both SPAN on a gross basis strain a particular Clearing Member’s of margin requirements used in the and STANS on a net basis, and if at any time OCC ability to meet such requirements based allocation formula are STANS-based staff observes a segregated futures account where on its financial condition or the amount margin requirements,15 certain Clearing initial margin calculated pursuant to STANS on a net basis exceeds the initial margin calculated of collateral it has available to pledge pursuant to SPAN on a gross basis, OCC when certain pre-identified thresholds 12 Id. collateralizes this risk exposure by applying an have been exceeded.20 13 See supra note 7. additional margin charge in the amount of such 14 See OCC Rule 1003(b)(i). OCC removes net difference to the account. See Securities Exchange asset value from the ‘‘total risk’’ component of the Act Release No. 72331 (June 5, 2014), 79 FR 33607 18 The term ‘‘Clearing Fund Draw’’ refers to an allocation formula because it does not reflect a risk (June 11, 2014) (SR–OCC–2014–13). SPAN is a estimated stress loss exposure in excess of margin measure but rather represents the value of contracts methodology developed by the Chicago Mercantile requirements. and collateral held in a Clearing Member’s Exchange and used by many clearinghouses and 19 See supra notes 7 and 8. accounts. exchanges around the world to calculate margin 20 For example, if a Sufficiency Stress Test margin 15 The System for Theoretical Analysis and requirements on futures and options on futures. call imposed on an individual Clearing Member Numerical Simulations (or ‘‘STANS’’) is OCC’s 17 Under OCC’s Margin Policy, OCC may exceeds 75% of the Clearing Member’s excess net proprietary risk management system for calculating collateralize certain exposures that may be modeled capital, and such Sufficiency Stress Test also results Clearing Member margin requirements. See outside of STANS using add-on charges. in Clearing Fund draws for any one or two Clearing

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5. Correction of Cooling-Off Period and transactions effected for the account of type (e.g., omnibus customer accounts, Replenishment/Assessment Power OCC pursuant to Chapter XI of the Rules combined market maker accounts, firm Rules and (2) as a result of a failure of any accounts) and cross-margining OCC proposes several corrections to Clearing Member to make any other relationship with other clearinghouses its Rules and Policy concerning its required payment or render any other (if applicable). For the purpose of stress cooling-off period and Clearing Fund required performance (as provided in testing, OCC considers liquidation replenishment/assessment powers. As clauses (v) and (vi) of Rule 1006(a)). positions, where Tier Account level part of OCC’s recently approved filings OCC therefore proposes to revise its positions are further aggregated into to implement enhanced and new Rules and Policy to more correctly Synthetic Accounts. The rules that recovery tools (‘‘Recovery Tools reflect that the cooling-off period and govern the netting process and Filings’’), OCC adopted a minimum 15- associated assessment caps apply for permissible offsets are based on account day ‘‘cooling-off period’’ with a cap on any proportionate charge resulting from structures outlined in OCC’s By-Laws any of the events described in clauses (i) Clearing Fund assessments.21 OCC Rule and Rules.24 The proposed revisions through (vi) of Rule 1006(a). The 1006(h) currently provides that the would also remove the discussion of cooling-off period is triggered when any proposed rule change would ensure that all proportionate charges associated ‘‘marginable positions,’’ which are used amount is paid out of the Clearing Fund to calculate margin requirements, since as a result of a proportionate charge with a Clearing Member default are treated consistently as was originally marginable positions are not relevant to resulting from any of the events OCC’s Clearing Fund and stress testing described in clauses (i) through (iv) of intended with the adoption of the 22 cooling-off period and modification of methodology requirements and OCC’s Rule 1006(a). The actual intention of various account structures and the the Recovery Tools Filings, however, OCC’s replenishment/assessment manner in which such accounts are was to capture any proportionate powers in the Recovery Tools Filings. margined is covered in OCC’s By-Laws, charges related to the default of a 6. Other Clarifying and Conforming Rules, and Margin Policy. In addition, Clearing Member,23 which would also Changes include any use of the Clearing Fund to the proposed revisions would restate in Finally, OCC proposes a number of make good losses or expenses suffered descriptive terms the calculation for clarifying, streamlining, and by OCC or as a result of a borrowing by determining total credit loss shortfalls. organizational changes to the OCC: (1) In connection with protective The proposed revisions would also Methodology Description that are not provide further clarity and detail intended to change the substance of Member Groups that exceed 90% of the current concerning the aggregation of account- OCC’s stress testing and Clearing Fund Clearing Fund size, OCC may choose to resize the level stress test results. A key aspect of Clearing Fund on an intra-month basis rather than methodology, but that OCC believes continuing to call for additional margin from a would improve the clarity and the aggregation of business type Clearing Member whose ability to meet such a call readability of the document. The accounts is that some accounts have a may be strained. See supra notes 7 and 8. restricted lien, in which assets in that 21 On August 23, 2018, the Commission issued a proposed changes to the Methodology Notice of No Objection to an advance notice by OCC Description are described below. account can only be used to offset losses concerning changes to OCC’s Rules and By-Laws to in that business type account, while enhance OCC’s existing tools to address the risks of Proposed Changes to the Executive other accounts have a general lien, in liquidity shortfalls and credit losses and to establish Summary which assets or gains in that account new tools by which OCC could re-establish a matched book and, if necessary, allocate uncovered OCC proposes to revise the model can be used to offset losses in any losses following the default of a Clearing Member scope discussion of the executive business type account of the same as well as provide for additional financial summary to provide a summary of the Clearing Member. The Methodology resources. See Securities Exchange Act Release No. 83927 (August 23, 2018), 83 FR 44083 (August 29, netting rules and positions sets used for Description would be revised to 2018) (SR–OCC–2017–809). On August 23, 2018, stress testing and to break out different summarize OCC’s process for the Commission approved a proposed rule change sections for the discussion of Systemic determining if an account is a general by OCC concerning the same proposal. See Scenarios and Idiosyncratic Scenarios. lien account or restricted lien account Securities Exchange Act Release No. 83916 (August 23, 2018), 83 FR 44076 (August 29, 2018) (SR–OCC– The executive summary would also be and for ensuring that such accounts 2017–020). revised to provide additional receive proper netting treatment. 22 These clauses include the following events: (i) information regarding the key Failure of any Clearing Member to discharge duly assumptions of OCC’s stress testing and Proposed Changes to the Description of any obligation on or arising from any confirmed OCC’s Stress Testing Model trade accepted by the Corporation; (ii) failure of any Clearing Fund methodology. In Clearing Member (including any Appointed addition, the Model Performance In addition, OCC proposes a number Clearing Member) or of CDS to perform its section of the executive summary would of changes to its Methodology obligations (including its obligations to the be revised to provide further correspondent clearing corporation) under or Description to improve the description information on supporting arising from any exercised or assigned option of the models used in OCC’s stress contract or matured future or any other contract or documentation for OCC’s stress testing. obligation issued, undertaken, or guaranteed by the testing and Clearing Fund methodology. Corporation or in respect of which the Corporation Proposed Changes to the Description of For example, the Methodology is otherwise liable; (iii) failure of any Clearing Stress Test Portfolio Construction Description would be revised to provide Member to perform any of its obligations to the additional context around the types of Corporation in respect of the stock loan and borrow OCC also proposes to revise its positions of such Clearing Member; and (iv) any Methodology Description to provide scenarios (e.g., Systemic Scenarios and liquidation of a Clearing Member’s open positions. additional details regarding the Idiosyncratic Scenarios) that stress 23 See e.g., Securities Exchange Act Release No. construction of stress testing portfolios. testing models are used to create. The 83927 (August 23, 2018), 83 FR 44083, 44077 proposed changes would also provide a (August 29, 2018) (SR–OCC–2017–809) (providing For example, the proposed revisions that ‘‘[t]he proposal would introduce a minimum would discuss OCC’s process for more straightforward discussion around fifteen calendar day ‘cooling-off’ period that creating the ‘‘Synthetic Accounts’’ used the use and selection of risk drivers automatically begins when OCC imposes a in stress testing. Clearing Member used to represent risk factors in OCC’s proportionate charge related to the default of a Clearing Member against non-defaulting Clearing positions are initially held in ‘‘Tier 24 See e.g., OCC Rules 601, 602, 611. Members’ Clearing Fund contributions.’’). Accounts’’ that have the same business

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one-factor stress testing model.25 OCC In addition, OCC proposes to revise also be revised to describe how, in the notes that under the current the Methodology Description to provide case of a leveraged product, shocks are Methodology Description, risk drivers a more straightforward discussion of the determined using a leverage ratio with and their mappings are subject to modeling of risk factor returns and price respect to its tracking index used as the periodic review and change by OCC’s shocks for Hypothetical and Historical default beta. OCC believes the proposed Stress Test Working Group (‘‘STWG’’). Scenarios and for OCC’s various cleared changes are more generally aligned with The Methodology Description currently products. Specifically, OCC proposes the intended purpose of the contains a non-exhaustive, sample set of clarifying, streamlining, and Methodology Description, which is risk drivers as of March 2018. OCC is organizational changes to the designed, in general, to provide a proposing to replace the sample set of description of its modeling of volatility general description of the materials risk drivers with a more general list of shocks for risk factors with SPX as the aspects of OCC’s stress testing and risk drivers that may be used per risk risk driver and for non-SPX driven risk Clearing Fund methodologies. factor type to ensure the ongoing factors. The proposed changes would Additionally, OCC proposes to correct accuracy and clarity of OCC’s also provide additional details on OCC’s a reference to the use of log returns in methodology documentation as the risk volatility modeling for flexibly the calculation of volatility shocks to drivers change through the STWG structured options (or ‘‘flex options’’),27 more accurately state that these governance process. The proposed for which shocked implied volatility is calculations are currently made using revisions would also provide additional calculated from shocked implied two-day arithmetic returns. OCC’s stress details around STWG’s process for volatilities of regular options. testing methodology utilizes two-day approving the addition, change or OCC also proposes to replace a arithmetic returns to calculate these retiring of risk drivers. Changes to risk section specifically discussing price shocks to align with OCC’s two-day drivers may be based on, among other shocks for products where the liquidation horizon assumption for its things: Changing business needs, new underlying security is a basket of margin methodology and the arithmetic product launches, open interest, or deliverable obligation securities with a returns used in its dynamic VIX other changes in product mix. more generalized discussion of OCC’s calibration process.29 Moreover, when adding, changing, or approach to modeling price shocks for OCC also proposes to clarify that retiring risk drivers, STWG would products with multiple risk factors as implied volatility shocks for Systemic consider factors including, but not the underlying. In this case, the Scenarios are based on the expected limited to: Contract specifications (e.g. a Methodology Description would risk, or ‘‘variance,’’ of the risk factor in derivative’s underlying asset, the asset describe how the underlyings are a forward-looking period after the price classification of a product), the shocked by applying the one-factor shock as opposed to the ‘‘standard relationship between proposed new model to each component risk factor. In deviation.’’ OCC believes that using the products and existing risk drivers, the addition, this proposed change would terms ‘‘variance’’ or ‘‘standard correlation between risk drivers and risk eliminate a restriction limiting the deviation’’ are essentially equivalent factors, and/or quality of available data. methodology to an ‘‘all or none’’ ways to describe the equation; however, STWG may also approve the retirement approach where price shocks are the term ‘‘variance’’ would more and removal of a risk driver that has no modeled using either all historical accurately reflect the terms of equation risk factors mapped to it or if the risk shocks or all shocks derived from OCC’s used in the document. driver itself is delisted. In addition, OCC beta methodology 28 to provide Proposed Changes to Description of would revise the methodology appropriate flexibility for OCC to Calibrations description to further clarify that, unlike determine price shocks on an individual annual recalibrations, the STWG would OCC proposes to revise its risk factor basis depending on whether Methodology Description to more only approve quarterly recalibration of historical data is available. This allows risk driver shocks when warranted (and correctly describe the approach for for consistency between the shocks of generating shocks for U.S. Treasuries not as a matter of course). The the basket and the shocks used to price Methodology Description would also be and Canadian Government Bond by products on the basket’s components. replacing the term ‘‘covariance’’ with updated to note that risk drivers and The Methodology Description would their mappings are maintained by the ‘‘correlation.’’ While the calibration STLRM group and are available in the does use a covariance matrix, the inputs volume, open interest, and risk at OCC. Due to the to the calibration are normalized by stress testing system. OCC does not nature of equity risk factors, OCC’s stress testing believe that these proposed changes methodology treats equity risk factors in a standard their standard deviation and so the and consistent fashion with respect to the mapping resulting matrix actually contains constitutes a material or substantive of risk drivers. Non-equity products, such as change in OCC’s Methodology correlations. The correlation matrix is commodity futures and certain exchange-traded then scaled by standard deviation terms products (e.g., ETFs and ETNs), may have different Description but rather more 30 appropriately documents OCC’s process risk drivers or risk drivers may change due to the to generate interest rate shocks. evolving nature of the securities markets and the for maintaining and updating risk products OCC clears. Consequently, OCC believes it Proposed Changes to Description of 26 drivers. is necessary to maintain appropriate flexibility to Stress Test Scenarios adjust risk drivers as evolving circumstances Finally, OCC proposes to revise the 25 ‘‘Risk factors’’ refer broadly to all of the warrant through the established STWG governance individual underlying securities (such as Google, process. Methodology Description to provide IBM and Standard & Poor’s Depositary Receipts 27 Flex options are options that give investors the additional clarity around the use and (‘‘SPDR’’), S&P 500 Exchange Traded Funds ability to customize basic option features including calibration of risk driver shocks in (‘‘SPY’’), etc.) listed on a market. ‘‘Risk drivers’’ are size, expiration date, exercise style, and certain Hypothetical, Historical and a selected set of securities or market indices (e.g., exercise prices that do not correspond to the terms SPX or VIX) that are used to represent the main of any series of non-flexibly structured options Idiosyncratic Scenarios. OCC would sources or drivers for the price changes of the risk previously opened for trading on an Exchange. See factors. OCC By-Laws, Article I., Section 1.F.(8). 29 See supra note 7. 26 OCC notes that the Methodology Description 28 The ‘‘beta’’ is the sensitivity of a security with 30 OCC notes that this is a standard practice. See would continue to specify that SPX and VIX are the respect to its corresponding risk driver (i.e., the Litterman, Robert and Sheinkman, Jose, ‘‘Common main risk drivers for shocks of equity risk factors sensitivity of the price of the security relative to the Factors Affecting Bond Returns,’’ Journal of Fixed as equity risk factors make up the vast majority of price of the risk driver). Income, 1991.

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also remove specific references to Consistency With the Section in that it produces a uniform shock certain risk drivers and parameters that 17A(b)(3)(F) of the Exchange Act across expirations of the VIX futures are subject to periodic review and Section 17A(b)(3)(F) of the Act 35 contract, which leads to an change through its internal governance requires, among other things, that the overestimation of VIX futures price processes. OCC would also update the rules of a clearing agency be designed to shocks, particularly in market decline sample table of stress test scenarios in promote the prompt and accurate scenarios. OCC therefore proposes to the document to: (1) Reflect the addition clearance and settlement of securities enhance its stress testing methodology of the proposed Idiosyncratic Scenarios; and derivatives transactions. Taken to produce more appropriate VIX (2) remove Informational Scenarios from together, OCC believes the proposed futures price shocks that would vary the table, which do not drive financial changes are designed to enhance OCC’s based on the expiration of contracts as resource determinations and are subject overall framework for managing credit is more realistically observed in the 38 to periodic change; and (3) provide risk and are consistent with Section market. OCC believes the proposed additional information on the type of 17A(b)(3)(F) of the Act 36 for the reasons changes would enhance OCC’s price shock used for each scenario in set forth below. framework for managing credit risk the table. In addition, OCC proposes to OCC believes that implementing the because it would result in more accurate remove certain language from the proposed Idiosyncratic Scenarios would and realistic stress testing results and document that provides qualitative enhance OCC’s stress testing are therefore designed to promote the justification for OCC’s Clearing Fund methodology and overall resiliency by prompt and accurate clearance and allocation methodology but does not providing a more comprehensive suite settlement of securities and derivatives have any relevance to the actual of Sizing Stress Tests to ensure that OCC transactions consistent with Section calculation of Clearing Fund allocations. maintains appropriate level of Pre- 17A(b)(3)(F) of the Act.39 OCC also proposes to revise the Policy Clearing Member Outreach Funded Financial Resources to cover its credit exposures under scenarios to require that STLRM provide written To inform Clearing Members of the addressing both systemic market risks notification to the Office of the CEO proposed changes, OCC has provided an and idiosyncratic risks. As noted above, whenever a Sufficiency Stress Test overview of the proposed changes to the OCC’s Sizing Stress Tests are used to margin call imposed on an individual Financial Risk Advisory Council establish the monthly size of the Clearing Member exceeds 75% of the (‘‘FRAC’’), a working group comprised Clearing Fund necessary for OCC to Clearing Member’s excess net capital. of exchanges, Clearing Members and maintain sufficient Pre-Funded The proposed change would allow indirect participants of OCC. OCC has Financial Resources to cover losses OCC’s senior management to be also performed direct outreach to arising from the default of the two informed of, and to subsequently Clearing Members that would be most Clearing Member Groups that would monitor, circumstances where a margin impacted by the proposed changes. To- potentially cause the largest aggregate call may strain a particular Clearing date, OCC has not received any material credit exposure to OCC in extreme but Member’s ability to meet such objections or concerns in response to plausible market conditions. The requirements based on its financial this outreach. proposed Idiosyncratic Scenarios would condition or the amount of collateral it Implementation Timing supplement OCC’s current set of Sizing has available to pledge when certain Scenarios (which are generally designed pre-identified thresholds have been OCC expects to implement the exceeded. OCC believes the proposed proposed changes within sixty (60) days to estimate risk exposures arising from more broad-based market and systemic rule change would improve its process after the date that OCC receives all for monitoring and managing credit risk, necessary regulatory approvals for the shocks reflected in OCC’s Systemic Scenarios) by enabling OCC to particularly those identified through proposed changes. OCC will announce Sufficiency Stress Test margin calls, and the implementation date of the appropriately consider the risks of extreme moves in individual or small take steps to reduce potential default proposed change by an Information risks so that it can continue to promote Memorandum posted to its public subsets of securities. OCC therefore believes that the proposed rule change the prompt and accurate clearance and website at least two (2) weeks prior to settlement of securities and derivatives implementation.31 would enhance OCC’s overall framework for managing credit risks and transactions consistent with Section 40 (1) Statutory Basis reduce the risk that its Pre-Funded 17A(b)(3)(F) of the Act. Financial Resources would be Additionally, OCC proposes to OCC believes the proposed rule standardize the margin risk component change is consistent with requirements insufficient in an actual default so that it can continue to provide prompt and of its Clearing Fund allocation formula of the Act and rules and regulations by using only STANS-based margin thereunder applicable to registered accurate clearance and settlement of securities and derivatives transactions requirements for all Clearing Members. clearing agencies. Specifically, OCC OCC believes it is appropriate to use the believes the proposed rule change is consistent with Section 17A(b)(3)(F) of the Act.37 same margin risk measurement for all consistent with Section 17A(b)(3)(F) of Clearing Members/accounts when 32 33 In addition, OCC proposes to enhance the Act and Rule 17Ad–22(b)(3) and determining Clearing Fund allocations 34 its stress testing methodology to more Rule 17Ad–22(e)(4) thereunder, as since this allows for a more equitable described in further detail below. accurately and appropriately model price shocks for VIX futures. Under comparison across all accounts through the utilization of a consistent margin 31 OCC notes that the impact of certain changes, OCC’s current stress testing such as the proposed changes to the Clearing Fund methodology, prices shocks for VIX methodology. OCC believes that the allocation formula and potential for a new futures are equivalent to the price shock Idiosyncratic Scenario to set the size of the Clearing for the underlying VIX index. OCC 38 Additionally, because VIX futures are used to Fund, will not occur until the first monthly resizing calculate theoretical values for VIX options, the of the Clearing Fund following the announced believes that this approach is unrealistic proposed enhancement would improve the pricing implementation date. of both VIX futures and VIX options in OCC’s stress 32 15 U.S.C. 78q–1(b)(3)(F). 35 15 U.S.C. 78q–1(b)(3)(F). testing methodology. 33 17 CFR 240.17Ad–22(b)(3). 36 Id. 39 15 U.S.C. 78q–1(b)(3)(F). 34 17 CFR 240.17Ad–22(e)(4). 37 Id. 40 Id.

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proposed changes would result in an Consistency With Rule 17Ad–22 Under In addition, OCC proposes to enhance allocation formula that determines the Exchange Act its stress testing methodology by using Clearing Member contribution Rule 17Ad–22(b)(3) 44 requires a SPX at-the-money implied volatility requirements that are commensurate to registered clearing agency that performs shocks across different expirations to the risks posed by each Clearing central counterparty services to model price shocks for VIX futures contracts for corresponding expirations Member. As a result, OCC believes the establish, implement, maintain and as opposed to using a uniform shock for proposed rule change is designed to enforce written policies and procedures all expirations. The proposed rule assure the safeguarding of securities and reasonably designed to maintain change is designed to more accurately funds which are in its custody or sufficient financial resources to measure OCC’s credit exposure in its control or for which it is responsible, withstand, at a minimum, a default by stress scenarios by producing price and, in general, to protect investors and the participant family to which it has shocks for VIX futures that would vary the public interest consistent with the largest exposure in extreme but 41 based on the expiration as is more Section 17A(b)(3)(F) of the Act. plausible market conditions. Rules OCC proposes to revise its Rules and realistically observed in the market. 17Ad–22(e)(4)(iii) and (iv) 45 further Policy to provide that the cooling-off Taken together, OCC believes the require, in part, that a covered clearing period and associated assessment caps proposed changes are reasonably agency establish, implement, maintain apply to any proportionate charge designed so that OCC can measure its and enforce written policies and related to a Clearing Member default, credit exposures to its participants and procedures reasonably designed to including any use of the Clearing Fund manage such exposures by maintaining effectively identify, measure, monitor, to make good losses or expenses sufficient financial resources at a and manage its credit exposures to suffered by OCC or as a result of a minimum to enable it to cover a wide participants and those arising from its borrowing by OCC (1) in connection range of foreseeable stress scenarios that payment, clearing, and settlement with protective transactions effected for include, but are not limited to, the processes, including by maintaining the account of OCC pursuant to Chapter default of the participant family that additional financial resources (beyond XI of the Rules and (2) as a result of a would potentially cause the largest those collected as margin or otherwise failure of any Clearing Member to make aggregate credit exposure for OCC in maintained to meet the requirements of any other required payment or render extreme but plausible market conditions Rule 17Ad–22(e)(4)(i)) 46 at the any other required performance, and are (and do so exclusive of assessments for minimum to enable it to cover a wide not limited to a certain subset of additional Clearing Fund contributions range of foreseeable stress scenarios that Clearing Member default-related events. or other resources that are not include, but are not limited to, the The proposed rule change would ensure prefunded). For these reasons, OCC default of the participant family that that the cooling-off period and believes the proposed changes are would potentially cause the largest associated assessment caps are consistent with Rule 17Ad–22(b)(3) and aggregate credit exposure for the 47 consistently applied for any Rules 17Ad–22(e)(4)(iii) and (iv). covered clearing agency in extreme but 48 proportionate charge resulting from any Furthermore, Rule 17Ad–22(e)(4) plausible market conditions and do so of the events described in clauses (i) generally requires that a covered exclusive of assessments for additional through (vi) of Rule 1006(a) and thereby clearing agency establish, implement, guaranty fund contributions or other ensure that OCC can fully access and maintain and enforce written policies resources that are not prefunded. utilize its Clearing Fund resources to and procedures reasonably designed to The proposed rule change would continue to provide prompt and effectively identify, measure, monitor, enhance OCC’s stress testing accurate clearance and settlement of and manage its credit exposures to methodology and overall resiliency by securities and derivatives transactions participants and those arising from its providing a more comprehensive suite consistent with Section 17A(b)(3)(F) of payment, clearing, and settlement of Sizing Stress Tests to ensure that OCC the Act 42 if such events were to occur. processes. OCC believes the proposed maintains an appropriate level of Pre- OCC also proposes to make clarifying, changes to its Sufficiency Stress Test Funded Financial Resources to cover its streamlining, and organizational monitoring process would improve its credit exposures under scenarios changes to the Methodology Description overall processes for monitoring and addressing both systemic market risks that are not intended to change the managing credit risk. OCC would revise and idiosyncratic risks. The proposed substance of OCC’s stress testing and the Policy to require that STLRM Idiosyncratic Scenarios would Clearing Fund methodology, but that provide written notification to the supplement OCC’s current set of Sizing OCC believes would improve the clarity Office of the CEO whenever a Scenarios, which are generally designed and readability of the document. OCC Sufficiency Stress Test margin call to estimate risk exposures arising from believes that by improving the clarity of imposed on an individual Clearing more broad-based market and systemic the primary documents governing OCC’s Member exceeds 75% of the Clearing shocks reflected in OCC’s Systemic Clearing and stress testing requirements Member’s excess net capital (in addition Scenarios, by enabling OCC to the proposed changes are designed, in to the current requirement to provide appropriately consider the risks of general, to protect the investors and the notification for any margin call extreme moves in individual or small public interest in a manner consistent exceeding $500 million). The proposed subsets of securities. OCC therefore with Section 17A(b)(3)(F) of the Act.43 change would allow OCC’s senior believes that the proposed rule change management to be informed of, and to 41 Id. OCC also believes that by standardizing the would enhance OCC’s overall subsequently monitor, circumstances margin risk component of its Clearing Fund framework for managing credit risks and where a margin call may strain a allocation formula the proposed rule change reduce the risk that its Pre-Funded particular Clearing Member’s ability to promotes compliance with the requirement of Financial Resources would be meet such requirements based on its Section 17A(b)(3)(F) of the Act that a clearing agency’s rules not be designed to permit unfair insufficient in an actual default. financial condition or the amount of discrimination among participants in the use of the clearing agency. 44 17 CFR 240.17Ad–22(b)(3). 47 17 CFR 240.17Ad–22(b)(3) and (e)(4)(iii) and 42 Id. 45 17 CFR 240.17Ad–22(e)(4)(iii) and (iv). (iv). 43 Id. 46 17 CFR 240.17Ad–22(e)(4)(i). 48 17 CFR 240.17Ad–22(e)(4).

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collateral it has available to pledge a default or other event in which use of size of the Clearing Fund.57 when certain pre-identified thresholds such resources is contemplated. OCC Accordingly, OCC does not believe the have been exceeded. OCC therefore believes the proposed changes to its proposed change would have any believes the proposed rule change is cooling-off period and associated impact or burden on competition. reasonably designed to help OCC assessment cap Rules would ensure that OCC does not believe the proposed identify, measure, and monitor its credit the cooling-off period and associated changes to its methodology for modeling exposures to participants, particularly assessment caps are consistently VIX futures price shocks would have a those identified through Sufficiency applied for any proportionate charge material impact on competition. The Stress Test margin calls, consistent with resulting from any of the events proposed changes are designed to Rule 17Ad–22(e)(4).49 described in clauses (i) through (vi) of generate more realistic price shocks that OCC also believes that the proposed Rule 1006(a) and thereby ensure that better reflect observed market changes to standardize the margin risk OCC can fully access, utilize, and conditions, which could generally result component of its Clearing Fund replenish its Clearing Fund resources to in lower shortfalls in market decline allocation formula by using only address any losses chargeable against scenarios. OCC expects that the STANS-based margin requirements for the Clearing Fund and manage its credit proposed VIX futures changes would all Clearing Members are reasonably exposures to participants and those have minimal impact on the monthly designed to measure and manage its arising from its payment, clearing, and sizing of the Clearing Fund; however, credit exposures to participants. With settlement processes in a manner the proposed change may result in respect to the use of Clearing Funds and consistent with Rule 17Ad– reduced shortfalls in OCC’s Sufficiency the requirements of Rule 17Ad– 22(e)(4)(ix).54 Scenarios (particularly the historical 22(e)(4),50 the Commission has noted Finally, OCC believes the proposed 1987 market event scenario) and that, to the extent that a clearing agency clarifying, organizational, and therefore result in less frequent uses guaranty or clearing fund streamlining changes to its Rules, Sufficiency Stress Test margin calls (or contributions to mutualize risk across Policy, and Methodology Description margin calls of a lower magnitude). The participants, the clearing agency would improve the clarity and impact of the proposed change would generally should value margin and readability of its stress testing and depend on the composition of a Clearing guaranty fund contributions so that the Clearing Fund-related rules and policies Member’s portfolio at a given time. contributions are commensurate to the are therefore consistent with the Rule Generally, Clearing Members with risks posed by the participants’ 17Ad–22(e)(4) 55 requirement that OCC longer tenor positions in VIX future activity.51 OCC believes it is appropriate contracts or VIX options will experience to use the same margin risk maintain policies and procedures that are reasonably designed to effectively a change in the profit and loss on the measurement for all Clearing Members/ contracts. Where these positions are accounts when determining Clearing identify, measure, monitor, and manage its credit exposures to participants and driving the shortfall in an account, the Fund allocations since this allows for a account would experience a change in more equitable comparison across all those arising from its payment, clearing, and settlement processes. shortfall due to the decrease in the accounts and would result in amount of the shock, dependent on the contribution requirements that are B. Clearing Agency’s Statement on position and direction of the shock for commensurate to the risks posed by Burden on Competition the scenario in question. When each Clearing Member. As a result, OCC shortfalls increase, a large Clearing believes the proposed changes are Section 17A(b)(3)(I) of the Act 56 requires that the rules of a clearing Member may be more likely to be reasonably designed to comply with the subject to more frequent and/or larger 52 agency not impose any burden on requirements of Rule 17Ad–22(e)(4). Sufficiency Stress Test margin calls than Rule 17Ad–22(e)(4)(ix) 53 requires that competition not necessary or under the current model. When a covered clearing agency establish, appropriate in furtherance of the shortfalls decrease, Clearing Members implement, maintain and enforce purposes of the Act. OCC does not may be less likely to breach Sufficiency written policies and procedures believe the proposed rule change would Thresholds and/or may experience reasonably designed to effectively impose any burden on competition. smaller Sufficiency Stress Test margin identify, measure, monitor, and manage First, OCC proposes to introduce new calls as a result of the change. OCC does its credit exposures to participants and Idiosyncratic Scenarios for OCC’s not believe that this would present an those arising from its payment, clearing, inventory of Sizing Stress Tests. OCC and settlement processes, including by does not believe that introducing the impact or burden from a competitive describing its process to replenish any Idiosyncratic Scenarios would have an standpoint, however. The proposed financial resources it may use following impact on competition. As part of OCC’s approach is simply intended to more Sizing Stress Tests, the Idiosyncratic accurately reflects the risks carried by Clearing Members and align any 49 Id. OCC also believes that the proposed change Scenarios would impact all Clearing to the Policy would: (1) Provide for governance Members similarly and would not potential margins calls with this more arrangements that specify clear and direct lines of impact individual Clearing Member accurate risk measure. responsibility consistent with the requirements of OCC also proposes to modify its allocations. In addition, based on Rule 17Ad–22(e)(2)(v) and (2) contribute to a sound Clearing Fund allocation methodology risk management framework for identifying, analysis performed by OCC, OCC to standardize the margin risk measuring, monitoring and managing credit and expects that the worst-case Cover 2 other risks that arise in or are borne by OCC in component of the allocation formula for furtherance of the requirements of Rule 17Ad– Idiosyncratic Scenario shortfall amounts 22(e)(3)(i). See 17 CFR 240.17Ad–22(e)(2)(v) and 17 would generally fall below OCC’s 57 OCC has observed that there were certain CFR 240.17Ad–22(e)(3)(i). current 1-in-80 year market event Sizing circumstances where the Idiosyncratic Scenarios 50 Id. Scenarios and therefore would not generated the largest shortfalls among OCC’s Sizing 51 See Securities Exchange Act Release No. 78961 ordinarily have a material impact on the Scenarios due to position increases relating to (September 28, 2016), 81 FR 70786 (October 13, corporate action activity in very liquid securities; 2016) (S7–03–14) (‘‘Standards for Covered Clearing however, in these circumstances the size of the Agencies’’) at 70813. 54 Id. Clearing Fund would have been established at the 52 Id. 55 17 CFR 240. 17Ad–22(e)(4). minimum requirement of $6.3 billion under Rule 53 17 CFR 240. 17Ad–22(e)(4). 56 15 U.S.C. 78q–1(b)(3)(I). 1001(b).

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all members by using only the STANS III. Date of Effectiveness of the inspection and copying at the principal base amount, plus certain add-on Proposed Rule Change and Timing for office of OCC and on OCC’s website at charges, in the Clearing Fund allocation Commission Action https://www.theocc.com/about/ process. Under the proposed change, Within 45 days of the date of publications/bylaws.jsp. Clearing Members with segregated publication of this notice in the Federal All comments received will be posted futures accounts would typically see Register or within such longer period without change. Persons submitting their Clearing Fund requirements up to 90 days (i) as the Commission may comments are cautioned that we do not decrease, while other Clearing Members’ designate if it finds such longer period redact or edit personal identifying requirements would generally increase to be appropriate and publishes its information from comment submissions. to balance out the full allocation of the reasons for so finding or (ii) as to which You should submit only information Clearing Fund. While OCC the self-regulatory organization that you wish to make available acknowledges the impact of the consents, the Commission will: publicly. proposed change on individual Clearing (A) By order approve or disapprove All submissions should refer to File Member contribution requirements, the proposed rule change, or Number SR–OCC–2019–009 and should OCC believes that using the same (B) institute proceedings to determine be submitted on or before November 19, margin risk measurement for all whether the proposed rule change 2019. Clearing Members/accounts when should be disapproved. For the Commission, by the Division of determining Clearing Fund allocations Trading and Markets, pursuant to delegated allows for a more equitable comparison IV. Solicitation of Comments authority.58 across all accounts. As a result, OCC Interested persons are invited to Jill M. Petersen, believes the proposed change would submit written data, views and Assistant Secretary. promote competition by standardizing arguments concerning the foregoing, [FR Doc. 2019–23550 Filed 10–28–19; 8:45 am] its Clearing Fund allocation formula and including whether the proposed rule BILLING CODE 8011–01–P treating all Clearing Members similarly change is consistent with the Exchange in the allocation process. Act. Comments may be submitted by In addition, OCC proposes changes to any of the following methods: SECURITIES AND EXCHANGE its cooling-off period and associated COMMISSION assessment cap rules that would ensure Electronic Comments that the cooling-off period and • Use the Commission’s internet Submission for OMB Review; associated assessment caps are comment form (http://www.sec.gov/ Comment Request consistently applied for any rules/sro.shtml); or proportionate charge resulting from any • Send an email to rule-comments@ Upon Written Request, Copies Available of the events described in clauses (i) sec.gov. Please include File Number SR– From: Securities and Exchange through (vi) of Rule 1006(a). These OCC–2019–009 on the subject line. Commission, Office of FOIA Services, changes would apply equally to all 100 F Street NE, Washington, DC Paper Comments Clearing Members and therefore OCC 20549–2736 does not believe the proposed changes • Send paper comments in triplicate Extension: would have any impact or burden on to Secretary, Securities and Exchange Rule 17a–1, SEC File No. 270–244, OMB competition. Commission, 100 F Street NE, Control No. 3235–0208 Finally, OCC proposes to make Washington, DC 20549–1090. Notice is hereby given that, pursuant clarifying changes to its Methodology All submissions should refer to File to the Paperwork Reduction Act of 1995 Description, which are not expected to Number SR–OCC–2019–009. This file (44 U.S.C. 3501 et seq.), the Securities have any impact on competition. The number should be included on the and Exchange Commission proposed changes are not intended to subject line if email is used. To help the (‘‘Commission’’) has submitted to the materially change OCC’s Clearing Fund Commission process and review your Office of Management and Budget or stress testing rules but are simply comments more efficiently, please use (‘‘OMB’’) a request for approval of designed to provide more accuracy and only one method. The Commission will extension of the previously approved clarity in OCC’s methodology post all comments on the Commission’s collection of information provided for in documentation. As a result, OCC does internet website (http://www.sec.gov/ Rule 17a–1 (17 CFR 240.17a–1) under not believe the proposed changes would rules/sro.shtml). Copies of the the Securities Exchange Act of 1934, as have any impact or burden on submission, all subsequent amended (the ‘‘Act’’) (15 U.S.C. 78a et competition. amendments, all written statements seq.). For the reasons set forth above, OCC with respect to the proposed rule Rule 17a–1 requires that every believes that the proposed rule change change that are filed with the national securities exchange, national would not impose any burden on Commission, and all written securities association, registered competition not necessary or communications relating to the clearing agency, and the Municipal appropriate in furtherance of the proposed rule change between the Securities Rulemaking Board keep on purposes of the Act Commission and any person, other than file for a period of not less than five those that may be withheld from the years, the first two years in an easily C. Clearing Agency’s Statement on public in accordance with the accessible place, at least one copy of all Comments on the Proposed Rule provisions of 5 U.S.C. 552, will be documents, including all Change Received From Members, available for website viewing and correspondence, memoranda, papers, Participants or Others printing in the Commission’s Public books, notices, accounts, and other such Written comments on the proposed Reference Room, 100 F Street NE, records made or received by it in the rule change were not and are not Washington, DC 20549, on official course of its business as such and in the intended to be solicited with respect to business days between the hours of conduct of its self-regulatory activity, the proposed rule change and none have 10:00 a.m. and 3:00 p.m. Copies of such been received. filing also will be available for 58 17 CFR 200.30–3(a)(12).

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and that such documents be available DC 20549, or by sending an email to: Commission’s Public Reference Room, for examination by the Commission. [email protected]. Comments must 100 F Street NE, Room 1503, There are 34 entities required to be submitted to OMB within 30 days of Washington, DC 20549, on official comply with the rule: 23 National this notice. business days between the hours of securities exchanges, 1 national Dated: October 24, 2019. 10:00 a.m. and 3:00 p.m. All statements securities association, 9 registered Eduardo A. Aleman, received will be posted without change. clearing agencies, and the Municipal Persons submitting comments are Deputy Secretary. Securities Rulemaking Board. The cautioned that we do not redact or edit Commission staff estimates that the [FR Doc. 2019–23601 Filed 10–28–19; 8:45 am] personal identifying information from average number of hours necessary for BILLING CODE 8011–01–P comment submissions. You should compliance with the requirements of submit only information that you wish Rule 17a–1 is 52 hours per year. In to make available publicly. addition, 4 national securities SECURITIES AND EXCHANGE COMMISSION FOR FURTHER INFORMATION CONTACT: exchanges notice-registered pursuant to Marc Oorloff Sharma, Chief Counsel, Section 6(g) of the Act (15 U.S.C. 78f(g)) [Release Nos. 33–10721; 34–87398; File No. Office of the Investor Advocate, at (202) are required to preserve records of 265–28] 551–3302, Securities and Exchange determinations made under Rule 3a55– Investor Advisory Committee Meeting Commission, 100 F Street NE, 1 under the Act (17 CFR 240.3a55–1), Washington, DC 20549. which the Commission staff estimates AGENCY: Securities and Exchange will take 1 hour per exchange, for a total SUPPLEMENTARY INFORMATION: The Commission. of 4 hours. Accordingly, the meeting will be open to the public, Commission staff estimates that the total ACTION: Notice of meeting of Securities except during that portion of the number of hours necessary to comply and Exchange Commission Dodd-Frank meeting reserved for an administrative with the requirements of Rule 17a–1 is Investor Advisory Committee. work session during lunch. Persons 1,772 hours. The total internal cost of needing special accommodations to take SUMMARY: The Securities and Exchange part because of a disability should compliance for all respondents is Commission Investor Advisory $124,040, based on an average cost per notify the contact person listed in the Committee, established pursuant to section above entitled FOR FURTHER hour of $70. Section 911 of the Dodd-Frank Wall Compliance with Rule 17a–1 is INFORMATION CONTACT. Street Reform and Consumer Protection mandatory. Rule 17a–1 does not assure The agenda for the meeting includes: Act of 2010, is providing notice that it confidentiality for the records Welcome remarks; a discussion will hold a public meeting. The public maintained pursuant to the rule. The regarding whether investors use is invited to submit written statements records required by Rule 17a–1 are environmental, social, and governance to the Committee. available only for examination by the (ESG) data in investment/capital Commission staff, state securities DATES: The meeting will be held on allocation decisions; a discussion authorities, and the self-regulatory Thursday, November 7, 2019 from 9:30 regarding the SEC’s Concept Release on organizations. Subject to the provisions a.m. until 3:00 p.m. (ET). Written Harmonization of Securities Offering of the Freedom of Information Act, 5 statements should be received on or Exemptions; subcommittee reports; and U.S.C. 522, and the Commission’s rules before November 7, 2019. a nonpublic administrative work session thereunder (17 CFR 200.80(b)(4)(iii)), ADDRESSES: The meeting will be held in during lunch. the Commission does not generally Multi-Purpose Room LL–006 at the Dated: October 24, 2019. publish or make available information Commission’s headquarters, 100 F Eduardo A. Aleman, contained in any reports, summaries, Street NE, Washington, DC 20549. The Deputy Secretary. analyses, letters, or memoranda arising meeting will be webcast on the out of, in anticipation of, or in Commission’s website at www.sec.gov. [FR Doc. 2019–23607 Filed 10–28–19; 8:45 am] connection with an examination or Written statements may be submitted by BILLING CODE 8011–01–P inspection of the books and records of any of the following methods: any person or any other investigation. An agency may not conduct or Electronic Statements SECURITIES AND EXCHANGE sponsor, and a person is not required to D Use the Commission’s internet COMMISSION respond to, a collection of information submission form (http://www.sec.gov/ [Release No. 34–87385; File No. SR– under the PRA unless it displays a rules/other.shtml); or NYSEArca–2019–51] currently valid OMB control number. D Send an email message to rules- The public may view background [email protected]. Please include File Self-Regulatory Organizations; NYSE documentation for this information No. 265–28 on the subject line; or Arca, Inc.; Order Instituting collection at the following website: Paper Statements Proceedings To Determine Whether To www.reginfo.gov. Comments should be Approve or Disapprove a Proposed D directed to: (i) Desk Officer for the Send paper statements to Vanessa Rule Change Regarding Investments of Securities and Exchange Commission, A. Countryman, Secretary, Securities the Janus Henderson Mortgage- Office of Information and Regulatory and Exchange Commission, 100 F Street Backed Securities ETF Currently Affairs, Office of Management and NE, Washington, DC 20549–1090. Listed and Traded on the Exchange Budget, Room 10102, New Executive All submissions should refer to File No. Under NYSE Arca Rule 8.600–E Office Building, Washington, DC 20503, 265–28. This file number should be or by sending an email to: included on the subject line if email is October 23, 2019. [email protected]; and (ii) used. To help us process and review On July 9, 2019, NYSE Arca, Inc. Charles Riddle, Acting Director/Chief your statement more efficiently, please (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed Information Officer, Securities and use only one method. with the Securities and Exchange Exchange Commission, c/o Candace Statements also will be available for Commission (‘‘Commission’’), pursuant Kenner, 100 F Street NE, Washington, website viewing and printing in the to Section 19(b)(1) of the Securities

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Exchange Act of 1934 (‘‘Act’’) 1 and Rule Management LLC is the Fund’s enter into ‘‘to be announced’’ or ‘‘TBA’’ 19b–4 thereunder,2 a proposed rule investment adviser (‘‘Adviser’’).10 State commitments when purchasing change to make certain changes to the Street Bank and Trust Company is the mortgage-backed securities. The Fund investments of the Janus Henderson custodian and transfer agent for the also may invest in exchange-traded Mortgage-Backed Securities ETF Fund, and ALPS Distributors, Inc. is the funds (‘‘ETFs’’).13 (‘‘Fund’’), the shares (‘‘Shares’’) of distributor for the Fund’s Shares. B. Other Investments of the Fund which are currently listed and traded on A. Principal Investments of the Fund the Exchange under NYSE Arca Rule While the Fund, under normal market 8.600–E. The proposed rule change was According to the Exchange, the conditions, will invest at least 80% of published for comment in the Federal Fund’s investment objective is to seek a its assets in the mortgage-related Register on July 25, 2019.3 high level of total return consisting of securities issued by the U.S. government On September 3, 2019, pursuant to income and capital appreciation. Under and its agencies as described above Section 19(b)(2) of the Act,4 the normal market conditions,11 the Fund under Principal Investments, the Fund Commission designated a longer period invests at least 80% of its net assets in may invest up to 20% of its assets in the within which to approve the proposed a portfolio of mortgage-related fixed securities and financial instruments rule change, disapprove the proposed income instruments of varying described below. rule change, or institute proceedings to maturities. The mortgage-related fixed The Fund may hold cash and cash determine whether to approve or income instruments in which the Fund equivalents.14 In addition, the Fund disapprove the proposed rule change.5 may invest are the following: may hold the following fixed income The Commission has received no Residential mortgage-backed securities; securities (‘‘Fixed Income Securities’’): • comment letters on the proposal. The commercial mortgage-backed securities; U.S. government securities; collateralized mortgage obligations; • industrial development bonds; Commission is publishing this order to • institute proceedings under Section stripped mortgage-backed securities; inflation-indexed bonds, including 19(b)(2)(B) of the Act 6 to determine mortgage pass-through securities; and municipal inflation-indexed bonds and whether to approve or disapprove the other securities representing an interest corporate inflation-indexed bonds; or in proposed rule change. in or secured by or related to mortgages, derivatives that are linked to these securities; including asset-backed securities • I. Exchange’s Description of the (‘‘ABS’’).12 municipal lease obligations; Proposal 7 • pass-through securities; Under normal market conditions, the • The Exchange proposes to make Fund will invest at least 80% of its net variable and floating rate certain changes to the investments of assets in mortgage-related securities obligations (including ‘‘inverse the Fund. According to the Exchange, issued by the U.S. government and its floaters’’); • subordinated or junior debt; the Shares of the Fund commenced agencies, such as the Government • corporate bonds, debentures, notes, listing and trading on the Exchange on National Mortgage Association (Ginnie and other similar corporate debt September 12, 2018 pursuant to the Mae), the Federal National Mortgage instruments; generic listing standards under Association (Fannie Mae) or the Federal • non-agency, or privately-issued, Commentary .01 to NYSE Arca Rule Home Loan Mortgage Corporation residential and commercial mortgage- 8.600–E, which governs the listing and (Freddie Mac). The Fund will typically 8 backed securities, and other mortgage- trading of Managed Fund Shares on related securities.15 the Exchange. Commission a registration statement on Form N–1A under the Securities Act of 1933 and the 1940 Act The Fund may enter into mortgage The Fund is a series of Janus Detroit dollar rolls and may invest in TBA Street Trust (‘‘Trust’’).9 Janus Capital relating to the Fund (File Nos. 333–207814 and 811–23112) (‘‘Registration Statement’’). In addition, transactions. The Fund may enter into the Exchange represents that the Commission has short sales of any securities in which 1 15 U.S.C. 78s(b)(1). issued an order granting certain exemptive relief to 2 17 CFR 240.19b–4. the Trust under the 1940 Act. See Investment the Fund may invest. 3 See Securities Exchange Act Release No. 86417 Company Act Release No. 31540 (March 30, 2015). The Fund also may hold the following (July 19, 2019), 84 FR 35910 (‘‘Notice’’). 10 The Exchange represents that the Adviser is not listed derivative instruments: Futures, 4 15 U.S.C. 78s(b)(2). registered as a broker-dealer, but is affiliated with options (including options on futures), 5 See Securities Exchange Act Release No. 86855, a broker-dealer and has implemented and will and swaps on commodities, currencies, maintain a fire wall with respect to such broker- 84 FR 47337 (September 9, 2019). The Commission U.S. and non-U.S. equity securities, designated October 23, 2019, as the date by which dealer affiliate regarding access to information it should approve, disapprove, or institute concerning the composition of, and/or changes to, fixed income securities as defined in proceedings to determine whether to approve or the portfolio. In the event (a) the Adviser becomes Commentary .01(b) to Rule 8.600–E, disapprove the proposed rule change. registered as a broker-dealer or newly affiliated with interest rates, U.S. Treasuries, or a 6 one or more broker-dealers, or (b) any new adviser 15 U.S.C. 78s(b)(2)(B). basket or index of any of the foregoing. 7 The Commission notes that additional or sub-adviser is a registered broker-dealer or information regarding, among other things, the becomes affiliated with a broker-dealer, it will Such listed derivatives will comply Shares, Fund, investment objective, permitted implement and maintain a fire wall with respect to with the criteria in Commentary .01(d) investments, investment strategies and its relevant personnel or its broker-dealer affiliate of NYSE Arca Rule 8.600–E. methodology, investment restrictions, investment regarding access to information concerning the adviser, creation and redemption procedures, composition of, and/or changes to, the portfolio, 13 availability of information, trading rules and halts, and will be subject to procedures designed to For purposes of this filing, ‘‘ETFs’’ are and surveillance procedures, can be found in the prevent the use and dissemination of material, non- Investment Company Units (as described in NYSE Notice (see supra note 3) and the Registration public information regarding such portfolio. Arca Rule 5.2–E(j)(3)); Portfolio Depositary Receipts Statement (see infra note 9), as applicable. 11 The term ‘‘normal market conditions’’ is (as described in NYSE Arca Rule 8.100–E); and 8 A Managed Fund Share is a security that defined in NYSE Arca Rule 8.600–E(c)(5). Managed Fund Shares (as described in NYSE Arca represents an interest in an investment company 12 The Fund will typically invest in asset-backed Rule 8.600–E). All ETFs will be listed and traded registered under the Investment Company Act of securities backed by pools of home equity loans and in the U.S. on a national securities exchange. 1940 (‘‘1940 Act’’) organized as an open-end other mortgage-related debt. Asset-backed securities 14 For purposes of this filing, cash equivalents investment company or similar entity that invests are collateralized by pools of obligations or assets. include the securities included in Commentary in a portfolio of securities selected by its investment Asset-backed securities may take the form of .01(c) to NYSE Arca Rule 8.600–E. adviser consistent with its investment objectives commercial paper, notes, or pass-through 15 Non-agency, or privately-issued, residential and policies. certificates, and may be structured as floaters, and commercial MBS, and other mortgage-related 9 The Trust is registered under the 1940 Act. On inverse floaters, interest-only, and principal-only securities and other asset-backed securities are February 28, 2019, the Trust filed with the obligations. referred to herein as ‘‘Private ABS/MBS.’’

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The Fund may hold the following similar investment objectives and returns. Further, the proposed over-the-counter (‘‘OTC’’) derivative strategies where such funds were alternative requirements are narrowly instruments: Forwards, options, and permitted to invest in the shares of other tailored to allow the Fund to achieve its OTC total return swaps on commodities, registered investment companies that investment objective in manner that is currencies, U.S. and non-U.S. equity are not ETFs or money market funds. consistent with the principles of Section securities, fixed income securities as In addition, the Exchange represents 6(b)(5) of the Act. As a result, the defined in Commentary .01(b) to Rule that the Fund will not comply with the Exchange represents that it is in the 8.600–E, interest rates, or a basket or requirements in Commentary .01(b)(4) public interest to approve listing and index of any of the foregoing. The Fund to NYSE Arca Rule 8.600–E that trading of Shares of the Fund on the also may hold OTC credit default swaps component securities that in the Exchange pursuant to the requirements and may enter into OTC options on aggregate account for at least 90% of the set forth herein. swap agreements. fixed income weight of the portfolio The Exchange represents that, other The Fund may invest in securities of meet one of the criteria specified in than Commentaries .01(a) and (b)(4) to non-exchange-traded investment Commentary .01(b)(4), because certain NYSE Arca Rule 8.600–E, as described company securities, subject to Private ABS/MBS by their nature cannot above, the Fund’s portfolio will meet all applicable limitations under Section satisfy the criteria in Commentary other requirements of NYSE Arca Rule 12(d)(1) of the 1940 Act, and may invest .01(b)(4).18 Instead, the Exchange 8.600–E. in private placements, restricted proposes that the Fund’s investments in securities, and Rule 144A securities. Fixed Income Securities other than II. Proceedings To Determine Whether The Fund will not invest in securities or Private ABS/MBS will be required to To Approve or Disapprove SR– other financial instruments that have comply with the requirements of NYSEArca–2019–51 and Grounds for not been described in this proposed rule Commentary .01(b)(4). The Exchange Disapproval Under Consideration change. believes that excluding Private ABS/ The Commission is instituting MBS from the 90% calculation in proceedings pursuant to Section C. Application of Generic Listing Commentary .01(b)(4) is consistent with 19(b)(2)(B) of the Act 19 to determine Requirements the Act because the Fund’s portfolio whether the proposed rule change The Exchange represents that it is will minimize the risk to the overall should be approved or disapproved. submitting this proposed rule change Fund associated with any particular Institution of such proceedings is because the portfolio for the Fund will holding of the Fund as a result of the appropriate at this time in view of the not meet all of the ‘‘generic’’ listing diversification provided by the legal and policy issues raised by the requirements of Commentary .01 to investments and the Adviser’s selection proposed rule change. Institution of NYSE Arca Rule 8.600–E applicable to process, which closely monitors proceedings does not indicate that the the listing of Managed Fund Shares. The investments to ensure maintenance of Commission has reached any Fund’s portfolio would meet all such credit and liquidity standards. Further, conclusions with respect to any of the requirements except for those set forth the Exchange believes that this issues involved. Rather, as described 16 in Commentaries .01(a) and alternative limitation is appropriate below, the Commission seeks and 17 Commentary .01(b)(4) to NYSE Arca because Commentary .01(b)(4) to NYSE encourages interested persons to Rule 8.600–E. Arca Rule 8.600–E is not designed for provide comments on the proposed rule The Fund may invest in non- structured finance vehicles such as change. exchange-traded investment company Private ABS/MBS. The Exchange notes Pursuant to Section 19(b)(2)(B) of the securities, which are equity securities. that the Commission has previously Act,20 the Commission is providing Because such securities have a net asset approved the listing of Managed Fund notice of the grounds for disapproval value based on the value of securities Shares with similar investment under consideration. The Commission is and financial assets the investment objectives and strategies without instituting proceedings to allow for company holds, the Exchange believes it imposing requirements that a certain additional analysis of the proposed rule is both unnecessary and inappropriate percentage of such funds’ securities change’s consistency with Section to apply to such investment company meet one of the criteria comparable to 6(b)(5) of the Act, which requires, securities the criteria in Commentary those set forth in Commentary .01(b)(4). among other things, that the rules of a .01(a)(1). The Exchange notes that the The Adviser represents that the national securities exchange be Commission has previously approved proposed exceptions from the ‘‘designed to prevent fraudulent and the listing of Managed Fund Shares with requirements of Commentary .01 to manipulative acts and practices, to NYSE Arca Rule 8.600–E described promote just and equitable principles of 16 Commentary .01(a)(1) to NYSE Arca Rule above are consistent with the Fund’s 8.600–E (U.S. Component Stocks) requires that the trade, and ‘‘to protect investors and the component stocks of the equity portion of a investment objective and will further public interest.’’ 21 portfolio that are U.S. Component Stocks meet assist the Adviser to achieve such The Commission asks that certain criteria initially and on a continuing basis. investment objective. Deviations from commenters address the sufficiency of 17 Commentary .01(b)(4) to NYSE Arca Rule the generic requirements are necessary the Exchange’s statements in support of 8.600–E provides that component securities that in for the Fund to achieve its investment the aggregate account for at least 90% of the fixed the proposal, which are set forth in the income weight of the portfolio must be either: (a) objective in a manner that is cost- Notice,22 in addition to any other From issuers that are required to file reports effective and that maximizes investors’ comments they may wish to submit pursuant to Sections 13 and 15(d) of the Act; (b) about the proposed rule change. In from issuers that have a worldwide market value of 18 According to the Exchange, Private ABS/MBS its outstanding common equity held by non- are generally issued by special purpose vehicles in particular, the Commission seeks affiliates of $700 million or more; (c) from issuers amounts smaller than the minimum dollar commenters’ views regarding whether that have outstanding securities that are notes, threshold set forth in Commentary .01(b)(4), so the the Exchange has adequately described bonds debentures, or evidence of indebtedness criteria in Commentary .01(b)(4) to NYSE Arca Rule having a total remaining principal amount of at 8.600–E regarding an issuer’s market capitalization 19 15 U.S.C. 78s(b)(2)(B). least $1 billion; (d) exempted securities as defined and the remaining principal amount of an issuer’s 20 in Section 3(a)(12) of the Act; or (e) from issuers securities are typically unavailable with respect to Id. that are a government of a foreign country or a Private ABS/MBS, even though such Private ABS/ 21 15 U.S.C. 78f(b)(5). political subdivision of a foreign country. MBS may own significant assets. 22 See Notice, supra note 3.

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and provided clear information about file number should be included on the and Exchange Commission (the the proposed portfolio for the subject line if email is used. To help the ‘‘Commission’’) has submitted to the Commission to make a determination Commission process and review your Office of Management and Budget under Section 6(b)(5) of the Act. comments more efficiently, please use (‘‘OMB’’) a request for extension of the only one method. The Commission will previously approved collection of III. Procedure: Request for Written post all comments on the Commission’s information discussed below. Comments internet website (http://www.sec.gov/ Section 31(a)(1) of the Investment The Commission requests that rules/sro.shtml). Copies of the Company Act of 1940 (15 U.S.C. 80a–1 interested persons provide written submission, all subsequent et seq.) (the ‘‘Act’’) requires registered submissions of their views, data, and amendments, all written statements investment companies (‘‘funds’’) and arguments with respect to the issues with respect to the proposed rule certain underwriters, broker-dealers, identified above, as well as any other change that are filed with the investment advisers, and depositors to concerns they may have with the Commission, and all written maintain and preserve records as proposal. In particular, the Commission communications relating to the prescribed by Commission rules. Rule invites the written views of interested proposed rule change between the 31a–1 (17 CFR 270.31a–1) under the Act persons concerning whether the Commission and any person, other than specifies the books and records that proposal is consistent with Section those that may be withheld from the each of these entities must maintain. 6(b)(5) or any other provision of the Act, public in accordance with the Rule 31a–2 (17 CFR 270.31a–2) under or the rules and regulations thereunder. provisions of 5 U.S.C. 552, will be the Act specifies the time periods that Although there do not appear to be any available for website viewing and entities must retain certain books and issues relevant to approval or printing in the Commission’s Public records, including those required to be disapproval that would be facilitated by Reference Room, 100 F Street NE, maintained under rule 31a–1. an oral presentation of views, data, and Washington, DC 20549 on official The retention of records, as required arguments, the Commission will business days between the hours of by the rule, is necessary to ensure access consider, pursuant to Rule 19b–4, any 10:00 a.m. and 3:00 p.m. Copies of the to material business and financial request for an opportunity to make an filing also will be available for information about funds and certain oral presentation.23 inspection and copying at the principal related entities. We periodically inspect Interested persons are invited to office of the Exchange. All comments the operations of funds to ensure they submit written data, views, and received will be posted without change. are in compliance with the Act and arguments regarding whether the Persons submitting comments are regulations under the Act. Due to the proposal should be approved or cautioned that we do not redact or edit limits on our resources, however, each disapproved by November 19, 2019. personal identifying information from fund may only be inspected at intervals of several years. In addition, the Any person who wishes to file a rebuttal comment submissions. You should prosecution of persons who have to any other person’s submission must submit only information that you wish engaged in certain violations of the file that rebuttal by December 3, 2019. to make available publicly. All federal securities laws may not be The Commission asks that commenters submissions should refer to File limited by timing restrictions. For these address the sufficiency of the Number SR–NYSEArca–2019–51 and reasons, we often need information Exchange’s statements in support of the should be submitted by November 19, relating to events or transactions that proposal, in addition to any other 2019. Rebuttal comments should be occurred years ago. Without the comments they may wish to submit submitted by December 3, 2019. about the proposed rule change. requirement to preserve books, records, Comments may be submitted by any For the Commission, by the Division of and other documents, our staff would of the following methods: Trading and Markets, pursuant to delegated have difficulty determining whether the authority.24 fund was in compliance with the law in Electronic Comments Jill M. Peterson, such areas as valuation of its portfolio • Use the Commission’s internet Assistant Secretary. securities, computation of the prices comment form (http://www.sec.gov/ [FR Doc. 2019–23549 Filed 10–28–19; 8:45 am] investors paid, and, when purchasing rules/sro.shtml); or BILLING CODE 8011–01–P and selling fund shares, types and • Send an email to rule-comments@ amounts of expenses the fund incurred, sec.gov. Please include File Number SR– kinds of investments the fund NYSEArca–2019–51 on the subject line. SECURITIES AND EXCHANGE purchased, actions of affiliated persons, COMMISSION or whether the fund had engaged in any Paper Comments illegal or fraudulent activities. As part of • Send paper comments in triplicate Submission for OMB Review; our examinations of funds, our staff also to Secretary, Securities and Exchange Comment Request reviews the materials that directors Commission, 100 F Street NE, consider in approving the advisory Washington, DC 20549–1090. Upon Written Request, Copy Available From: Securities and Exchange contract. All submissions should refer to File There are 3,160 funds currently Commission, Office of FOIA Services, Number SR–NYSEArca–2019–51. This operating as of December 31, 2018, all 100 F Street NE, Washington, DC of which are required to comply with 20549–2736 23 Section 19(b)(2) of the Act, as amended by the rule 31a–2. The Commission staff Securities Acts Amendments of 1975, Public Law Extension: estimates that, on average, a fund 94–29 (June 4, 1975), grants the Commission Rule 31a–2, SEC File No. 270–174, OMB spends 220.4 hours annually to comply flexibility to determine what type of proceeding— Control No. 3235–0179 either oral or notice and opportunity for written with the rule. The Commission therefore comments—is appropriate for consideration of a Notice is hereby given that, pursuant estimates the total annual hour burden particular proposal by a self-regulatory to the Paperwork Reduction Act of 1995 of the rule’s and form’s paperwork organization. See Securities Acts Amendments of 1975, Senate Comm. on Banking, Housing & Urban (44 U.S.C. 3501 et seq.), the Securities requirements to be 696,464 hours. In Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 addition to the burden hours, the (1975). 24 17 CFR 200.30–3(a)(57). Commission staff estimates that the

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average yearly cost to each fund that is previously approved collection of time startup costs of $912,000, or subject to rule 31a–2 is about information provided for in Rule 17a–3 $304,000 amortized over a three-year $36,510.28. The Commission estimates (17 CFR 240.17a–3), under the approval period, to hire outside counsel total annual cost is therefore about Securities Exchange Act of 1934 (15 to review the controls. The staff further $115.4 million. U.S.C. 78a et seq.). estimates that the ongoing equipment Estimates of average burden hours Rule 17a–3 under the Securities and systems development costs relating and costs are made solely for purposes Exchange Act of 1934 establishes to Rule 17a–3 for the industry would be of the Paperwork Reduction Act and are minimum standards with respect to about $37,446,686 per year. not derived from a comprehensive or business records that broker-dealers Consequently, the total cost burden even representative survey or study of registered with the Commission must associated with Rule 17a–3 would be the costs of Commission rules and make and keep current. These records approximately $54,072,405 per year. forms. Compliance with the collection are maintained by the broker-dealer (in Rule 17a–3 does not contain record of information requirements of the rule accordance with a separate rule), so they retention requirements. Compliance is mandatory. Responses to the can be used by the broker-dealer and with the rule is mandatory. The disclosure requirements will not be kept reviewed by Commission examiners, as required records are available only to confidential. An agency may not well as other regulatory authority the staffs of the Commission, self- conduct or sponsor, and a person is not examiners, during inspections of the regulatory organizations of which the required to respond to a collection of broker-dealer. broker-dealer is a member, and the information unless it displays a The collections of information states during examination, inspections currently valid OMB control number. included in Rule 17a–3 are necessary to and investigations. The public may view the background provide Commission, self-regulatory An agency may not conduct or documentation for this information organization and state examiners to sponsor, and a person is not required to collection at the following website: conduct effective and efficient respond to, a collection of information www.reginfo.gov. Comments should be examinations to determine whether under the PRA unless it displays a directed to: (i) Desk Officer for the broker-dealers are complying with currently valid OMB control number. Securities and Exchange Commission, relevant laws, rules, and regulations. If The public may view the background Office of Information and Regulatory broker-dealers were not required to documentation for this information Affairs, Office of Management and create these baseline, standardized collection at the following website, Budget, Room 10102, New Executive records, Commission, self-regulatory www.reginfo.gov. Comments should be Office Building, Washington, DC 20503, organization and state examiners could directed to (i) Desk Officer for the or by sending an email to: be unable to determine whether broker- Securities and Exchange Commission, [email protected]; and (ii) dealers are in compliance with the Office of Information and Regulatory Charles Riddle, Acting Director and Commission’s antifraud and anti- Affairs, Office of Management and Chief Information Officer, Securities manipulation rules, financial Budget, Room 10102, New Executive and Exchange Commission, c/o Candace responsibility program, and other Office Building, Washington, DC 20503, Kenner, 100 F Street NE, Washington, Commission, SRO, and State laws, rules, or by sending an email to: Shagufta_ DC 20549 or by sending an email to: and regulations. [email protected]; and (ii) Charles [email protected]. Comments must As of December 31, 2018 there were Riddle, Acting Director/Chief be submitted to OMB within 30 days of 3,764 broker-dealers registered with the Information Officer, Securities and this notice. Commission. The Commission estimates Exchange Commission, c/o Candace Dated: October 24, 2019. that these broker-dealer respondents Kenner, 100 F Street NE, Washington, DC 20549, or by sending an email to: Eduardo A. Aleman, incur a total burden of 2,893,773 hours per year to comply with Rule 17a–3. [email protected]. Comments must Deputy Secretary. In addition, Rule 17a–3 contains be submitted to OMB within 30 days of [FR Doc. 2019–23596 Filed 10–28–19; 8:45 am] ongoing operation and maintenance this notice. BILLING CODE 8011–01–P costs for broker-dealers, including the Dated: October 24, 2019. cost of postage to provide customers Eduardo A. Aleman, with account information, and costs for SECURITIES AND EXCHANGE Deputy Secretary. equipment and systems development. COMMISSION [FR Doc. 2019–23598 Filed 10–28–19; 8:45 am] The Commission estimates that under BILLING CODE 8011–01–P Submission for OMB Review; Rule 17a–3(a)(17), approximately Comment Request 45,633,482 customers will need to be provided with information regarding SECURITIES AND EXCHANGE Upon Written Request, Copies Available their account on a yearly basis. The COMMISSION From: Securities and Exchange Commission estimates that the postage Commission, Office of FOIA Services, costs associated with providing those Submission for OMB Review; 100 F Street NE, Washington, DC customers with copies of their account Comment Request 20549–2736 record information would be Extension: approximately $16,321,719 per year Upon Written Request, Copies Available Rule 17a–3, SEC File No. 270–026, OMB (45,633,482 × $0.35).1 The staff From: Securities and Exchange Control No. 3235–0033 estimates that broker-dealers Commission, Office of FOIA Services, Notice is hereby given that pursuant establishing liquidity, credit, and 100 F Street NE, Washington, DC to the Paperwork Reduction Act of 1995 market risk management controls 20549–2736 (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the pursuant to Rule 17a–3(a)(23) incur one- Extension: Securities and Exchange Commission Rule 17a–10, OMB Control No. 3235–0563, 1 Estimates of postage costs are derived from past SEC File No. 270–507 (‘‘Commission’’) has submitted to the conversations with industry representatives and Office of Management and Budget have been adjusted to account for inflation and Notice is hereby given that pursuant (‘‘OMB’’) a request for extension of the increases in postage costs. to the Paperwork Reduction Act of 1995

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(44 U.S.C. 3501 et seq.) (‘‘PRA’’) the assumes that all newly formed PRA. The estimate is not derived from Securities and Exchange Commission subadvised funds, and funds that enter a comprehensive or even a (‘‘Commission’’) has submitted to the into new contracts with subadvisers, representative survey or study of the Office of Management and Budget will incur the one-time burden by costs of Commission rules. Complying (‘‘OMB’’) a request for extension of the amending their contracts to add the with this collection of information previously approved collection of terms required by the rule. requirement is necessary to obtain the information discussed below. Based on an analysis of fund filings, benefit of relying on rule 17a–10. Section 17(a) of the Investment the staff estimates that approximately Responses will not be kept confidential. Company Act of 1940 (15 U.S.C. 80a–1 221 funds enter into new subadvisory An agency may not conduct or sponsor, et seq.) (the ‘‘Act’’), generally prohibits agreements each year.7 Based on and a person is not required to respond affiliated persons of a registered discussions with industry to, a collection of information unless it investment company (‘‘fund’’) from representatives, the staff estimates that displays a currently valid control borrowing money or other property it will require approximately 3 attorney number. from, or selling or buying securities or hours to draft and execute additional The public may view the background other property to or from, the fund or clauses in new subadvisory contracts in documentation for this information any company that the fund controls.1 order for funds and subadvisers to be collection at the following website, Section 2(a)(3) of the Act defines able to rely on the exemptions in rule www.reginfo.gov. Comments should be ‘‘affiliated person’’ of a fund to include 17a–10. Because these additional directed to: (i) Desk Officer for the its investment advisers.2 Rule 17a–10 clauses are identical to the clauses that Securities and Exchange Commission, (17 CFR 270.17a–10) permits (i) a a fund would need to insert in their Office of Information and Regulatory subadviser 3 of a fund to enter into subadvisory contracts to rely on rules Affairs, Office of Management and transactions with funds the subadviser 10f–3 (17 CFR 270.10f–3), 12d3–1 (17 Budget, Room 10102, New Executive does not advise but that are affiliated CFR 270.12d3–1), and 17e–1 (17 CFR Office Building, Washington, DC 20503, persons of a fund that it does advise 270.17e–1), and because we believe that or by sending an email to: (e.g., other funds in the fund complex), funds that use one such rule generally [email protected]; and (ii) and (ii) a subadviser (and its affiliated use all of these rules, we apportion this Charles Riddle, Acting Director/Chief persons) to enter into transactions and 3 hour time burden equally among all Information Officer, Securities and arrangements with funds the subadviser four rules. Therefore, we estimate that Exchange Commission, c/o Candace does advise, but only with respect to the burden allocated to rule 17a–10 for Kenner, 100 F Street NE, Washington, discrete portions of the subadvised fund this contract change would be 0.75 DC 20549 or send an email to: PRA_ 8 for which the subadviser does not hours. Assuming that all 221 funds that [email protected]. Comments must be provide investment advice. enter into new subadvisory contracts submitted to OMB within 30 days of To qualify for the exemptions in rule each year make the modification to their this notice. 17a–10, the subadvisory relationship contract required by the rule, we must be the sole reason why section estimate that the rule’s contract Dated: October 24, 2019. 17(a) prohibits the transaction. In modification requirement will result in Eduardo A. Aleman, addition, the advisory contracts of the 166 burden hours annually, with an Deputy Secretary. subadviser entering into the transaction, associated cost of approximately [FR Doc. 2019–23599 Filed 10–28–19; 8:45 am] 9 and any subadviser that is advising the $68,890. BILLING CODE 8011–01–P purchasing portion of the fund, must The estimate of average burden hours prohibit the subadvisers from consulting is made solely for the purposes of the with each other concerning securities SECURITIES AND EXCHANGE transactions of the fund, and limit their formed after 2003 that intended to rely on rule 17a– COMMISSION 10 would have included the required provision as responsibility to providing advice with a standard element in their initial subadvisory [Investment Company Act Release No. respect to discrete portions of the fund’s contracts. 33675; File No. 812–15052] portfolio.4 This requirement regarding 7 Based on data from Morningstar, as of March the prohibitions and limitations in 2019, there are 12,407 registered funds (open-end MassMutual Select Funds, et al. advisory contracts of subadvisors funds, closed-end funds (including interval funds), and exchange-traded funds), 4,609 funds of which October 23, 2019. relying on the rule constitutes a have subadvisory relationships (approximately AGENCY: collection of information under the 37%). Based on data from the 2019 ICI publications, Securities and Exchange PRA.5 597 new funds were established in 2018 (582 open- Commission (the ‘‘Commission’’). end funds and exchange-traded funds (from the ACTION: Notice. The staff assumes that all existing 2019 ICI Fact Book) + 15 closed-end funds (from the funds with subadvisory contracts ICI Research Perspective, April 2019)). 597 new Notice of an application for an order amended those contracts to comply with funds × 37% = 221 funds. the adoption of rule 17a–10 in 2003, 8 This estimate is based on the following under section 12(d)(1)(J) of the which conditioned certain exemptions calculation: 3 hours ÷ 4 rules = 0.75 hours. Investment Company Act of 1940 (the 9 upon these contractual alterations, and These estimates are based on the following ‘‘Act’’) for an exemption from sections calculations: (0.75 hours × 221 portfolios = 166 12(d)(1)(A), (B), and (C) of the Act, and therefore there is no continuing burden × burden hours); ($415 per hour 166 hours = under sections 6(c) and 17(b) of the Act for those funds.6 However, the staff $68,890 total cost). The Commission’s estimates concerning the wage rates for attorney time are for an exemption from section 17(a) of 1 15 U.S.C. 80a–17(a). based on salary information for the securities the Act. The requested order would industry compiled by the Securities Industry and 2 15 U.S.C. 80a–2(a)(3)(E). permit certain registered open-end Financial Markets Association. The estimated wage 3 As defined in rule 17a–10(b)(2). 17 CFR figure is based on published rates for in-house investment companies to acquire shares 270.17a–10(b)(2). attorneys, modified to account for a 1,800-hour of certain registered open-end 4 17 CFR 270.17a–10(a)(2). work-year and inflation, and multiplied by 5.35 to investment companies, registered 5 44 U.S.C. 3501. account for bonuses, firm size, employee benefits, closed-end investment companies, and 6 Transactions of Investment Companies With and overhead, yielding an effective hourly rate of Portfolio and Subadviser Affiliates, Investment $415. See Securities Industry and Financial Markets business development companies Company Act Release No. 25888 (Jan. 14, 2003) [68 Association, Report on Management & Professional (‘‘BDCs’’), as defined in section 2(a)(48) FR 3153 (Jan. 22, 2003)]. We assume that funds Earnings in the Securities Industry 2013. of the Act, and registered unit

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investment trusts (‘‘UITs’’) (collectively, SUPPLEMENTARY INFORMATION: The transactions will be consistent with the the ‘‘Underlying Funds’’) that are within following is a summary of the policies of each Fund of Funds and each and outside the same group of application. The complete application Underlying Fund and with the general investment companies as the acquiring may be obtained via the Commission’s purposes of the Act and will be based investment companies, in excess of the website by searching for the file on the net asset values of the limits in section 12(d)(1) of the Act. number, or for an applicant using the Underlying Funds. Company name box, at https:// APPLICANTS: MassMutual Select Funds, 2. Applicants agree that any order MassMutual Premier Funds, MML www.sec.gov/search/search.htm, or by calling (202) 551–8090. granting the requested relief will be Series Investment Fund, and MML subject to the terms and conditions Series Investment Fund II (each a Summary of the Application stated in the application. Such terms ‘‘Trust,’’ and collectively, the ‘‘Trusts’’), 1. Applicants request an order to and conditions are designed to, among is each organized as a Massachusetts permit (a) each Fund 1 (and each a other things, help prevent any potential business trust and registered with the ‘‘Fund of Funds’’) to acquire shares of (i) undue influence over an Underlying Commission under the Act as an open- Underlying Funds 2 in excess of the Fund that is not in the same ‘‘group of end management investment company limits in sections 12(d)(1)(A) and (C) of with multiple series, each of which has investment companies’’ as the Fund of the Act, and (b) each Underlying Fund Funds through control or voting power, its own investment objectives and that is a registered open-end principal investment strategies. MML or in connection with certain services, management investment company or transactions, and underwritings, (ii) Investment Advisers, LLC, the adviser to series thereof, their principal the Trusts, is organized as a limited excessive layering of fees, and (iii) underwriters, and any broker or dealer overly complex fund structures, which liability company established under the registered under the 1934 Act to sell are the concerns underlying the limits laws of the state of Delaware and is shares of the Underlying Funds to the in sections 12(d)(1)(A), (B), and (C) of registered as an investment adviser Fund of Funds in excess of the limits in under section 203 of the Investment section 12(d)(1)(B) of the Act.3 the Act. Advisers Act of 1940. Applicants also request that the 3. Section 12(d)(1)(J) of the Act FILING DATES: The application was filed Commission issue an order under provides that the Commission may on July 26, 2019, and amended on sections 6(c) and 17(b) of the Act from exempt any person, security, or October 17, 2019. the prohibition on certain affiliated transaction, or any class or classes of HEARING OR NOTIFICATION OF HEARING: An transactions in section 17(a) of the Act persons, securities, or transactions, from order granting the requested relief will to the extent necessary to permit the any provision of section 12(d)(1) if the be issued unless the Commission orders Underlying Funds to sell their shares to, exemption is consistent with the public a hearing. Interested persons may and redeem their shares from, the Funds interest and the protection of investors. 4 request a hearing by writing to the of Funds. Applicants state that such Section 17(b) of the Act authorizes the Commission’s Secretary and serving Commission to grant an order applicants with a copy of the request, 1 Applicants request that the order apply not only to the existing series of the Trusts (the ‘‘Existing permitting a transaction otherwise personally or by mail. Hearing requests Funds’’), but that the order also extend to any future prohibited by section 17(a) if it finds should be received by the Commission series of each Trust and any other existing or future that (a) the terms of the proposed by 5:30 p.m. on November 18, 2019, and registered open-end management investment transaction are fair and reasonable and should be accompanied by proof of companies and any series thereof that are part of the same ‘‘group of investment companies,’’ as defined do not involve overreaching on the part service on the applicants, in the form of in section 12(d)(1)(G)(ii) of the Act, as the Trusts of any person concerned; (b) the an affidavit, or, for lawyers, a certificate are, or may in the future be, advised by the Adviser proposed transaction is consistent with or any other investment adviser controlling, of service. Pursuant to rule 0–5 under the policies of each registered the Act, hearing requests should state controlled by, or under common control with the Adviser (together with the Existing Funds, each investment company involved; and (c) the nature of the writer’s interest, any series a ‘‘Fund,’’ and collectively, the ‘‘Funds’’). For the proposed transaction is consistent facts bearing upon the desirability of a purposes of the request for relief, the term ‘‘group hearing on the matter, the reason for the of investment companies’’ means any two or more with the general purposes of the Act. request, and the issues contested. registered investment companies, including closed- Section 6(c) of the Act permits the end investment companies and BDCs, that hold Commission to exempt any persons, Persons who wish to be notified of a themselves out to investors as related companies for hearing may request notification by purposes of investment and investor services. securities, or transactions from any writing to the Commission’s Secretary. 2 Certain of the Underlying Funds registered provision of the Act if such exemption under the Act as either UITs or open-end is necessary or appropriate in the public ADDRESSES: Secretary, U.S. Securities management investment companies may have interest and consistent with the and Exchange Commission, 100 F Street requested and obtained exemptions from the NE, Washington, DC 20549–1090. Commission necessary to permit their shares to be protection of investors and the purposes Applicants: Andrew M. Goldberg, Esq., listed and traded on a national securities exchange fairly intended by the policy and at negotiated prices and, accordingly, to operate as provisions of the Act. MML Investment Advisers, LLC, 100 exchange-traded funds (collectively, ‘‘ETFs’’ and Bright Meadow Blvd., Enfield, CT each an ‘‘ETF’’). shares from the Fund of Funds. This includes, in 06082, with copies to Timothy W. 3 Applicants are not requesting relief for a Fund the case of sales and redemptions of shares of ETFs, of Funds to invest in BDCs and registered closed- the in-kind transactions that accompany such sales Diggins, Esq. and Yana D. Guss, Esq., end investment companies that are not listed and Ropes & Gray LLP, Prudential Tower, and redemptions. Applicants are not seeking relief traded on a national securities exchange. from section 17(a) for, and the requested relief will 4 800 Boylston Street, Boston, MA 02199– A Fund of Funds generally would purchase and not apply to, transactions where an ETF, BDC, or sell shares of an Underlying Fund that operates as 3600. closed-end fund could be deemed an affiliated an ETF or closed-end fund through secondary person, or an affiliated person of an affiliated FOR FURTHER INFORMATION CONTACT: market transactions rather than through principal Edward J. Rubenstein, Senior Special transactions with the Underlying Fund. Applicants person, of a Fund of Funds because an investment Counsel, at (202) 551–6854, or Nadya B. nevertheless request relief from sections 17(a)(1) adviser to the ETF, BDC, or closed-end fund, or an and (2) to permit each ETF or closed-end fund that entity controlling, controlled by, or under common Roytblat, Assistant Chief Counsel, at is an affiliated person, or an affiliated person of an control with the investment adviser to the ETF, (202) 551–6823 (Division of Investment affiliated person, as defined in section 2(a)(3) of the BDC, or closed-end fund, is also an investment Management, Chief Counsel’s Office). Act, of a Fund of Funds, to sell shares to or redeem adviser to the Fund of Funds.

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For the Commission, by the Division of this registration requirement, Canadian- (or 1 percent) of those issuers are likely Investment Management, pursuant to U.S. Participants previously were not to rely on rule 237 to make a public delegated authority. able to purchase or exchange securities offering of their securities to Eduardo A. Aleman, for their Canadian retirement accounts participants, and that each of those 24 Deputy Secretary. as needed to meet their changing issuers, on average, distributes 3 [FR Doc. 2019–23554 Filed 10–28–19; 8:45 am] investment goals or income needs. different written offering documents BILLING CODE 8011–01–P The Commission issued a rulemaking concerning those securities, for a total of in 2000 that enabled Canadian-U.S. 72 offering documents. Participants to manage the assets in The staff therefore estimates that SECURITIES AND EXCHANGE their Canadian retirement accounts by during each year that rule 237 is in COMMISSION providing relief from the U.S. effect, approximately 36 respondents 5 registration requirements for offers of would be required to make 72 responses Submission for OMB Review; securities of foreign issuers to Canadian- by adding the new disclosure statements Comment Request U.S. Participants and sales to Canadian to approximately 72 written offering retirement accounts.2 Rule 237 under documents. Thus, the staff estimates Upon Written Request, Copies Available the Securities Act 3 permits securities of that the total annual burden associated From: Securities and Exchange foreign issuers, including securities of with the rule 237 disclosure Commission, Office of FOIA Services, foreign funds, to be offered to Canadian- requirement would be approximately 12 100 F Street NE, Washington, DC U.S. Participants and sold to their hours (72 offering documents × 10 20549–2736 Canadian retirement accounts without minutes per document). The total Extension: being registered under the Securities annual cost of burden hours is estimated Rule 237 30-Day Notice (2019), SEC File Act. to be $4,980 (12 hours × $415 per hour No. 270–465, OMB Control No. 3235– Rule 237 requires written offering of attorney time).6 0528 documents for securities offered and In addition, issuers from foreign Notice is hereby given that, pursuant sold in reliance on the rule to disclose countries other than Canada could rely to the Paperwork Reduction Act of 1995 prominently that the securities are not on rule 237 to offer securities to (44 U.S.C. 3501–3520), the Securities registered with the Commission and are Canadian-U.S. Participants and sell and Exchange Commission (the exempt from registration under the U.S. securities to their accounts without ‘‘Commission’’) has submitted to the securities laws. The burden under the becoming subject to the registration Office of Management and Budget a rule associated with adding this requirements of the Securities Act. request for extension and approval of disclosure to written offering documents However, the staff believes that the the collection of information discussed is minimal and is non-recurring. The number of issuers from other countries below. foreign issuer, underwriter, or broker- that rely on rule 237, and that therefore In Canada, as in the United States, dealer can redraft an existing prospectus are required to comply with the offering individuals can invest a portion of their or other written offering material to add document disclosure requirements, is earnings in tax-deferred retirement this disclosure statement, or may draft negligible. savings accounts (‘‘Canadian retirement a sticker or supplement containing this These burden hour estimates are accounts’’). These accounts, which disclosure to be added to existing based upon the Commission staff’s operate in a manner similar to offering materials. In either case, based experience and discussions with the individual retirement accounts in the on discussions with representatives of fund industry. The estimates of average United States, encourage retirement the Canadian fund industry, the staff burden hours are made solely for the savings by permitting savings on a tax- estimates that it would take an average purposes of the Paperwork Reduction deferred basis. Individuals who of 10 minutes per document to draft the Act. These estimates are not derived establish Canadian retirement accounts requisite disclosure statement. from a comprehensive or even a while living and working in Canada and The Commission understands that representative survey or study of the who later move to the United States there are approximately 2,412 Canadian costs of Commission rules. (‘‘Canadian-U.S. Participants’’ or issuers other than funds that may rely Compliance with the collection of ‘‘participants’’) often continue to hold on rule 237 to make an initial public information requirements of the rule is their retirement assets in their Canadian offering of their securities to Canadian- mandatory and is necessary to comply retirement accounts rather than U.S. Participants.4 The staff estimates with the requirements of the rule in prematurely withdrawing (or ‘‘cashing that in any given year approximately 24 general. An agency may not conduct or out’’) those assets, which would result sponsor, and a person is not required to in immediate taxation in Canada. (‘‘funds’’) that are not registered pursuant to the respond to, a collection of information Investment Company Act of 1940 (‘‘Investment unless it displays a currently valid Once in the United States, however, Company Act’’) is generally prohibited by U.S. these participants historically have been securities laws. 15 U.S.C. 80a. control number. unable to manage their Canadian 2 See Offer and Sale of Securities to Canadian retirement account investments. Most Tax-Deferred Retirement Savings Accounts, Release 5 This estimate of respondents only includes Nos. 33–7860, 34–42905, IC–24491 (June 7, 2000) foreign issuers. The number of respondents would securities that are ‘‘qualified [65 FR 37672 (June 15, 2000)]. This rulemaking also be greater if foreign underwriters or broker-dealers investments’’ for Canadian retirement included new rule 7d–2 under the Investment draft stickers or supplements to add the required accounts are not registered under the Company Act, permitting foreign funds to offer disclosure to existing offering documents. U.S. securities laws. Those securities, securities to Canadian-U.S. Participants and sell 6 The Commission’s estimate concerning the wage securities to Canadian retirement accounts without rate for attorney time is based on salary information therefore, generally cannot be publicly registering as investment companies under the for the securities industry compiled by the offered and sold in the United States Investment Company Act. 17 CFR 270.7d–2. Securities Industry and Financial Markets without violating the registration 3 17 CFR 230.237. Association (‘‘SIFMA’’). The $415 per hour figure requirement of the Securities Act of 4 This estimate is based on the following for an attorney is from SIFMA’s Management & 1 calculation: 2,322 equity issuers + 90 bond issuers Professional Earnings in the Securities Industry 1933 (‘‘Securities Act’’). As a result of = 2,412 total issuers (as of Dec. 2018). See The MiG 2013, modified by Commission staff to account for Report, Toronto Stock Exchange and TSX Venture an 1,800-hour work-year and multiplied by 5.35 to 1 15 U.S.C. 77. In addition, the offering and Exchange (Dec. 2018) (providing number of equity account for bonuses, firm size, employee benefits, selling of securities of investment companies and bond issuers on the Toronto Exchange). overhead, and inflation.

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The public may view the background hours, and the total estimated annual opening auction process for Nasdaq- documentation for this information cost is $13,397,120. listed securities following trading halts collection at the following website, Written comments are invited on: (a) due to extraordinary market volatility. www.reginfo.gov. Comments should be Whether the proposed collection of The proposed rule change was directed to: (i) Desk Officer for the information is necessary for the proper published for comment in the Federal Securities and Exchange Commission, performance of the functions of the Register on July 25, 2019.3 On Office of Information and Regulatory Commission, including whether the September 5, 2019, the Commission Affairs, Office of Management and information will have practical utility; extended the time period within which Budget, Room 10102, New Executive (b) the accuracy of the Commission to either approve the proposed rule Office Building, Washington, DC 20503, staff’s estimates of the burden of the change, disapprove the proposed rule or by sending an email to: proposed collection of information; (c) change, or institute proceedings to [email protected]; and (ii) the ways to enhance the quality, utility, determine whether to approve or Charles Riddle, Acting Director/Chief and clarity of the information collected; disapprove the proposed rule change, to Information Officer, Securities and and (d) ways to minimize the burden of October 23, 2019.4 The Commission Exchange Commission, c/o Candace the collection of information on received no comment letters on the Kenner, 100 F Street NE, Washington, respondents, including through the use proposed rule change. This order DC 20549 or send an email to: PRA_ of automated collection techniques or institutes proceedings under Section [email protected]. Comments must be other forms of information technology. 19(b)(2)(B) of the Act to determine submitted to OMB within 30 days of Consideration will be given to whether to approve or disapprove the this notice. comments and suggestions submitted in proposed rule change. writing within 60 days of this Dated: October 24, 2019. publication. II. Background and Description of the Eduardo A. Aleman, An agency may not conduct or Proposal Deputy Secretary. sponsor, and a person is not required to The Exchange has proposed to amend [FR Doc. 2019–23602 Filed 10–28–19; 8:45 am] respond to, a collection of information the re-opening auction process for BILLING CODE 8011–01–P under the PRA unless it displays a Nasdaq-listed securities following currently valid OMB control number. trading halts due to extraordinary Please direct your written comments market volatility (‘‘market-wide circuit SECURITIES AND EXCHANGE to: Charles Riddle, Acting Director/Chief breakers’’).5 Currently, after a Level 1 or COMMISSION Information Officer, Securities and Level 2 market-wide circuit breaker Exchange Commission, c/o Cynthia trading halt initiated under Nasdaq Rule Proposed Collection; Comment Roscoe, 100 F Street NE, Washington, 4121 (‘‘MWCB Halt’’), trading in Request DC 20549, or send an email to: PRA_ Nasdaq-listed securities would resume [email protected]. 6 Upon Written Request, Copies Available on the Exchange through a Halt Cross. From: Securities and Exchange Dated: October 24, 2019. Additionally, the Exchange would Commission, Office of FOIA Services, Eduardo A. Aleman, extend the Display Only Period for an 100 F Street NE, Washington, DC Deputy Secretary. additional 1-minute period if there is 20549–2736 [FR Doc. 2019–23597 Filed 10–28–19; 8:45 am] volatility during the Display Only Period (i.e., an order imbalance in the BILLING CODE 8011–01–P Extension: security). The volatility checks are Rules 17Ad–22—Standards for Clearing governed under Nasdaq Rule Agencies, SEC File No. 270–646, OMB Control No. 3235–0695 SECURITIES AND EXCHANGE 4120(c)(7)(C)(1) and (2), and provide COMMISSION that the Display Only Period will be Notice is hereby given that pursuant extended if: (i) The expected cross price to the Paperwork Reduction Act of 1995 [Release No. 34–87391; File No. SR– moves the greater of 5% or 50 cents, or (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the NASDAQ–2019–057] (ii) all market orders will not be Securities and Exchange Commission Self-Regulatory Organizations; The executed in the cross. (‘‘Commission’’) is soliciting comments Nasdaq Stock Market LLC; Order The Exchange proposes modifications on the existing collection of information Instituting Proceedings To Determine to its rules that would allow it to instead provided for in Rule 17Ad–22 (17 CFR Whether To Approve or Disapprove a follow a process it believes is similar to 240.17Ad–22) under the Securities Proposed Rule Change To Amend Rule that described in Nasdaq Rule Exchange Act of 1934 (‘‘Exchange Act’’) 4121 4120(c)(10) for releasing a security (15 U.S.C. 78a et seq.). The Commission plans to submit this existing collection October 23, 2019. 3 See Securities Exchange Act Release No. 86412 of information to the Office of (July 19, 2019), 84 FR 35900 (‘‘Notice’’). Management and Budget (‘‘OMB’’) for I. Introduction 4 See Securities Exchange Act Release No. 86875 extension and approval. On July 16, 2019, The Nasdaq Stock (September 11, 2019), 84 FR 47998. 5 The Exchange also proposes a number of Rule 17Ad–22 was adopted to Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) formatting clean-ups in Nasdaq Rule 4121. See strengthen the substantive regulation of filed with the Securities and Exchange Notice, supra note 3, at 35903. clearing agencies, promote the safe and Commission (‘‘Commission’’) pursuant 6 In particular, Nasdaq Rule 4121(c)(i) provides reliable operation of covered clearing to Section 19(b)(1) of the Securities that the re-opening of trading following a Level 1 Exchange Act of 1934 (‘‘Act’’) 1 and Rule or Level 2 trading halt shall follow the procedures agencies, and improve efficiency, set forth in Nasdaq Rule 4120. The Exchange states 2 transparency, and access to covered 19b–4 thereunder, a proposed rule that these procedures are set forth in Nasdaq Rule clearing agencies.1 The total estimated change to amend Nasdaq Rule 4121 4120(c)(7) (see Notice, supra note 3, at 35901), annual burden of Rule 17Ad–22 is 8,091 (Trading Halts Due to Extraordinary which provides, in relevant part, for a 5-minute Market Volatility) to enhance the re- Display Only Period during which market participants may enter quotes and orders in Nasdaq 1 See 17 CFR 240.17Ad–22; see also Exchange Act systems, at the conclusion of which trading will Release No. 34–68080 (Oct. 22, 2012), 77 FR 66219, 1 15 U.S.C. 78s(b)(1). immediately resume through the Halt Cross under 66225–26 (Nov. 2, 2012). 2 17 CFR 240.19b–4. Nasdaq Rule 4753.

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following a Trading Pause initiated securities with an Auction Reference case of securities with an Auction pursuant to the Plan to Address Price of $5 or less, $0.50.9 Reference Price of $5 or less, $0.50, to Extraordinary Market Volatility Proposed Nasdaq Rules 4121(d)(2) the previous upper MWCB Auction (‘‘LULD’’ or ‘‘LULD Plan’’).7 Proposed and (d)(3) specify the circumstances Collar price, and the lower MWCB paragraph (d) to Nasdaq Rule 4121 when the Exchange would extend the Auction Collar price will not be provides that an MWCB Halt shall be Display Only Period for an MWCB Halt changed. terminated when Nasdaq releases the re-opening process, and how the At the conclusion of the Extended security for trading. For any such Exchange would adjust the MWCB Display Only Period, the security will security listed on Nasdaq, prior to Auction Collars for each extension. In be released for trading unless, at the end terminating the MWCB Halt, there will particular, at the conclusion of the of the Extended Display Only Period, be a 15-minute ‘‘Initial Display Only Initial Display Only Period, the security Nasdaq detects an order imbalance in Period’’ during which market will be released for trading unless, at the the security. In that case, Nasdaq will participants may enter quotations and end of the Initial Display Only Period, further extend the Display Only Period, orders in that security in Nasdaq Nasdaq detects an order imbalance in continuing to adjust the MWCB Auction systems. The Initial Display Only Period the security. In that case, Nasdaq will Collar prices every five minutes in the will be 15 minutes in duration to extend the Display Only Period for an manner described in proposed Nasdaq coincide with the entire duration of an additional 5-minute period (‘‘Extended Rule 4121(d)(2) until the security is MWCB Halt. Display Only Period’’), and the MWCB released for trading; provided, however, Auction Collar prices will be adjusted as that Nasdaq will not adjust the MWCB Proposed Nasdaq Rule 4121(d)(1)(A) follows: Auction Collar prices past 50% of the provides that during the Initial Display • If the Display Only Period is Auction Reference Price for any security Only Period, the Exchange will also extended because the calculated price at during any Extended Display Only establish the ‘‘Auction Reference Price,’’ which the security would be released Period.10 During any additional which is the Nasdaq last sale price for trading is below the lower MWCB Extended Display Only Period after the (either round or odd lot) after 9:15 a.m. Auction Collar price or all sell market first Extended Display Only Period, Eastern Time but prior to the MWCB orders would not be executed in the Nasdaq shall release the security for Halt and, if none, the prior trading day’s cross, then the new lower MWCB trading at the first point there is no Nasdaq Official Closing Price.8 Auction Collar price is derived by order imbalance. Proposed Nasdaq Rule 4121(d)(1)(B) subtracting 10% of the Auction Proposed Nasdaq Rule 4121(d)(4) describes how the Exchange would Reference Price, which was rounded to specifies that an order imbalance would calculate the upper and lower MWCB the nearest minimum price increment, be established for purposes of the Auction Collar prices during the Initial or in the case of securities with an process under Nasdaq Rule 4121 as Display Period. The lower MWCB Auction Reference Price of $5 or less, follows: Auction Collar is derived by subtracting $0.50, from the previous lower MWCB • The calculated price at which the from the Auction Reference Price 10% Auction Collar price, and the upper security would be released for trading is of the Auction Reference Price, or in the MWCB Auction Collar price will not be above (below) the upper (lower) MWCB case of securities with an Auction changed. Auction Collar price calculated under Reference Price of $5 or less, $0.50. The • If the Display Only Period is paragraphs (1), (2), or (3) of Nasdaq Rule upper MWCB Auction Collar is derived extended because the calculated price at 4121(d); or by adding to the Auction Reference which the security would be released • all market orders would not be Price 10% of the Auction Reference for trading is above the upper MWCB executed in the cross. Price, rounded to the nearest minimum Auction Collar price or all buy market Proposed Nasdaq Rule 4121(d)(5) price increment, or in the case of orders would not be executed in the describes how the MWCB Auction cross, then the new upper MWCB Collars will function in the event of 7 The Exchange believes that its LULD re-opening Auction Collar price is derived by more than one trading halt initiated process has been effective in facilitating a fair and adding 10% of the Auction Reference under Nasdaq Rule 4121 in the same orderly market following Trading Pauses initiated Price, which was rounded to the nearest day. In the event of a Level 2 Market pursuant to the LULD Plan, and believes it is Decline while a security is in a Level 1 implementing similar functionality for trading halts minimum price increment, or in the in Nasdaq-listed securities following the initiation MWCB Halt and has not been released of market-wide circuit breakers. The Exchange 9 The Exchange notes that both Arca and BZX further believes that the proposed changes would employ narrower auction collar thresholds (5% of 10 The Exchange notes that the proposal to limit promote price formation and provide a more the auction reference price, or $0.15 for securities the MWCB Auction Collars to 50% of the Auction consistent re-opening process for members and with an auction reference price of $3 or less). See Reference Price deviates from the implementations investors following such trading halts, similar to the Arca Rule 7.35–E(e)(7)(B)(ii) and BZX Rule of MWCB auction collars on Arca and BZX, neither current implementations for re-opening following 11.23(d)(2)(C)(i)(B). The Exchange believes that the of which limit the auction collars. The Exchange an MWCB Halt on NYSE Arca, Inc. (‘‘Arca’’) and wider parameters proposed for MWCB Auction states that it balanced the potential for the proposed Cboe BZX Exchange, Inc. (‘‘BZX’’). See Notice, Collars are set at appropriate levels that would 50% limit to prevent the transition to continuous supra note 3, at 35900–01. allow the Exchange to re-open trading in securities trading, particularly in instances of extreme price 8 The Exchange believes its proposal is similar to more quickly while still reducing the potential to volatility that could result in increased Extended the current implementations on Arca and BZX for re-open at a price that is significantly away from the Display Only Periods against the potential for re-openings following an MWCB Halt. See Arca last traded price of the security. The Exchange also extreme volatility resulting in trades at prices far Rule 7.35–E(a)(8)(A) and BZX Rule 11.23(a)(9). The notes that it has traditionally been a listing venue away from a security’s fundamental value, which Exchange states that the proposed Auction for equity stocks, while Arca and BZX have could ultimately harm parties to the trade. The Reference Price for MWCB Halts is substantially traditionally listed more ETFs, which track entire Exchange believes that an MWCB Halt will be similar to Arca’s and BZX’s auction reference sectors, indices or other groups of assets and can triggered during a period of significant volatility prices, except the Exchange will use the last Nasdaq mute the effect of price volatility of the ETF. The across markets that may not correlate to the sale price prior to the MWCB Halt, as opposed to Exchange believes that the proposed wider price fundamental value of a single security and that the last consolidated price. The Exchange believes bands strikes an appropriate balance between limiting the MWCB Auction Collars to 50% of the that it is appropriate to use the price of a trade on allowing the Exchange to return to normal Auction Reference Price achieves an appropriate the primary listing market to set the reference price continuous trading in a measured, timely manner balance in favor of preventing extraordinary for auctions in Nasdaq-listed securities when such while accommodating the potential higher volatility volatility that could result in significant price a trade has been executed recently. See Notice, of individual stocks. See Notice, supra note 3, at disparity in post-auction trading. See Notice, supra supra note 3, at 35902. 35902. note 3, at 35903.

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for trading, Nasdaq will recalculate the of the grounds for disapproval under address the sufficiency of the lower and upper MWCB Auction Collar consideration. The Commission is Exchange’s statements in support of the prices in the particular security in instituting proceedings to allow for proposal which are set forth in the accordance with paragraph (B)(1) of additional analysis and input Notice,17 in addition to any other proposed Nasdaq Rule 4121.11 In this concerning the proposed rule change’s comments they may wish to submit instance, the Exchange will start the consistency with the Act 14 and, in about the proposed rule change. In calculation of the new upper and lower particular, with Section 6(b)(5) of the particular, the Commission seeks MWCB Auction Collar prices using 10% Act, which requires, among other comment, including where relevant, any of the Auction Reference Price, rounded things, that the rules of a national specific data, statistics, or studies, on to the nearest minimum price securities exchange be designed to the following: increment, or $0.50 for securities with prevent fraudulent and manipulative 1. The Nasdaq proposal appears to an Auction Reference Price of $5 or less. acts and practices, to promote just and differ from other primary listing market The Exchange believes that the equitable principles of trade, to remove MWCB re-opening processes in three proposed language would bring greater impediments to and perfect the ways. First, the Nasdaq proposal would transparency to market participants in mechanism of a free and open market establish a security’s auction reference how the Exchange would handle the and a national market system and, in price after a MWCB Halt by referring to calculation of MWCB Auction Collars. general, to protect investors and the the Nasdaq last sale price (as opposed The Exchange also proposes to add public interest.15 to the consolidated last sale price). new paragraph (e) to Nasdaq Rule 4121 For the reasons discussed above, the Second, the Nasdaq proposal would to describe how the Exchange will Commission believes it is appropriate to establish wider price bands of 10% of handle the publication of MWCB Halt institute proceedings pursuant to the Auction Reference Price, or in the Information. Specifically, at the Section 19(b)(2)(B) of the Act to case of securities with an Auction beginning of the Initial Display Only determine whether the proposal should Reference Price of $5 or less, $0.50 (as Period and continuing through the be approved or disapproved. opposed to 5% of the auction reference resumption of trading, Nasdaq will price, or $0.15 for securities with an IV. Procedure: Request for Written disseminate by electronic means an auction reference price of $3), and Comments Order Imbalance Indicator 12 every would widen the price bands in those second. The Exchange also proposes to The Commission requests that larger increments (as opposed to make a related change by adding new interested persons provide written widening in the smaller increments). Nasdaq Rule 4753(a)(3)(G), which will submissions of their views, data, and Third, the Nasdaq proposal would not provide that for purposes of an MWCB arguments with respect to the concerns widen the price bands for an individual Halt initiated pursuant to Nasdaq Rule identified above, as well as any other security beyond 50% (as opposed 4121, the Order Imbalance Indicator concerns they may have with the gradually widening price bands without will include Auction Reference Prices proposal. In particular, the Commission limit until a security is reopened). and MWCB Auction Collars, as defined invites the written views of interested Should the primary listing exchanges in Nasdaq Rule 4121(d). persons concerning whether the harmonize their respective processes for proposed rule change is inconsistent reopening trading after a halt pursuant III. Proceedings To Determine Whether with Section 6(b)(5) or any other to the market-wide circuit breaker To Disapprove SR–NASDAQ–2019–057 provision of the Act, or the rules and mechanism following a Level 1 or Level and Grounds for Disapproval Under regulation thereunder. Although there 2 Market Decline, and if so, why? If so Consideration do not appear to be any issues relevant which aspects of the re-opening The Commission is instituting to approval or disapproval which would processes should be harmonized (e.g., proceedings pursuant to Section be facilitated by an oral presentation of period of auction order entry, type of 19(b)(2)(B) of the Act to determine views, data, and arguments, the auction information disseminated, whether the proposal should be Commission will consider, pursuant to length of dissemination period, approved or disapproved.13 Institution Rule 19b–4, any request for an frequency of dissemination, auction of such proceedings is appropriate at opportunity to make an oral reference price, determination of this time in view of the legal and policy presentation.16 auction match price, width of auction issues raised by the proposed rule Interested persons are invited to collars, reasons for extending auction, change, as discussed below. Institution submit written data, views, and length of auction extension period, of disapproval proceedings does not arguments regarding whether the thresholds for expanding auction indicate that the Commission has proposal should be approved or collars, or limits on expansion of reached any conclusions with respect to disapproved by November 19, 2019. auction collars) and what are the any of the issues involved. Any person who wishes to file a rebuttal appropriate parameters? Should Nasdaq Pursuant to Section 19(b)(2)(B) of the to any other person’s submission must further harmonize its proposed MWCB Act, the Commission is providing notice file that rebuttal by December 3, 2019. reopening process to align with Arca The Commission asks that commenters and BZX on establishment of auction 11 As currently provided in Nasdaq Rule reference prices, auction collars levels, 4121(b)(i), the Exchange would halt trading based 14 on a Level 1 or Level 2 Market Decline only once 15 U.S.C. 78f(b)(5). and/or the limit (or lack thereof) on per day. 15 Id. auction collar adjustments? 12 As described in Nasdaq Rule 4753(a)(3), an 16 Section 19(b) (2) of the Act, as amended by the 2. Is it appropriate for the Exchange ‘‘Order Imbalance Indicator’’ is a message Securities Act Amendments of 1975, Public Law to derive and expand the lower/upper disseminated by electronic means containing 94–29 (June 4, 1975), grants the Commission information about Eligible Interest and the price at flexibility to determine what type of proceeding— MWCB Auction Collar by subtracting which such interest would execute at the time of either oral or notice and opportunity for written from/adding to the Auction Reference dissemination. ‘‘Eligible Interest’’ is defined as any comments—is appropriate for consideration of a Price 10% of the Auction Reference quotation or any order that has been entered into particular proposal by a self-regulatory Price (or $0.50 for securities priced $5 the system and designated with a time-in-force that organization. See Securities Act Amendments of would allow the order to be in force at the time of 1975, Senate Comm. on Banking, Housing & Urban or less), which are currently wider than the Halt Cross. See Nasdaq Rule 4753(a)(5). Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 13 15 U.S.C. 78s(b)(2)(B). (1975). 17 See Notice, supra note 3.

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the parameters that Arca and BZX use comments more efficiently, please use electronic logging device (ELD) rule that to derive and expand their respective only one method. The Commission will was denied by the Agency on July 17, MWCB auction collars? Are there any post all comments on the Commission’s 2019. SBTC has resubmitted its specific data, statistics, or studies to internet website (http://www.sec.gov/ application for exemption from the ELD support the Exchange’s belief that (1) rules/sro.shtml). requirements for all motor carriers with the wider parameters proposed for Copies of the submission, all fewer than 50 employees, including, but MWCB Auction Collars are set at subsequent amendments, all written not limited to, one-person private and appropriate levels that would allow the statements with respect to the proposed for-hire owner-operators of commercial Exchange to re-open trading in rule change that are filed with the motor vehicles used in interstate securities more quickly while still Commission, and all written commerce. SBTC believes that the reducing the potential to re-open at a communications relating to the exemption would not have any adverse price that is significantly away from the proposed rule change between the impacts on operational safety as motor last traded price of the security and (2) Commission and any person, other than carriers and drivers would remain the wider parameters are appropriate those that may be withheld from the subject to the hours-of-service (HOS) because the Exchange has traditionally public in accordance with the regulations as well as the requirements been a listing venue for equity stocks as provisions of 5 U.S.C. 552, will be to maintain paper records of duty status contrasted with Arca and BZX which available for website viewing and (RODs). FMCSA requests public have traditionally listed more ETFs, printing in the Commission’s Public comment on SBTC’s application for which can mute the effect of price Reference Room, 100 F Street NE, reconsideration. volatility? 18 Washington, DC 20549, on official DATES: Comments must be received on 3. Is it appropriate for the Exchange business days between the hours of or before November 29, 2019. to not adjust the MWCB Auction Collar 10:00 a.m. and 3:00 p.m. Copies of the prices past 50% of the Auction filing also will be available for ADDRESSES: You may submit comments Reference Price for any security during inspection and copying at the principal identified by Federal Docket any Extended Display Only Period? Are office of the Exchange. All comments Management System (FDMS) Number there any specific data, statistics, or received will be posted without change. FMCSA–2019–0239 by any of the studies to support the Exchange’s belief Persons submitting comments are following methods: that (1) without this limitation, there is cautioned that we do not redact or edit • Federal eRulemaking Portal: potential for extreme volatility resulting personal identifying information from www.regulations.gov. See the Public in trades at prices far away from a comment submissions. You should Participation and Request for Comments security’s fundamental value, ultimately submit only information that you wish section below for further information. harming investors that are party to the to make available publicly. • Mail: Docket Management Facility, trade and (2) it may be more appropriate All submissions should refer to File U.S. Department of Transportation, 1200 to continue adjusting price collars in the Number SR–NASDAQ–2019–057 and New Jersey Avenue SE, West Building, context of LULD where trading is halted should be submitted on or before Ground Floor, Room W12–140, due to a period of extraordinary November 19, 2019. Rebuttal comments Washington, DC 20590–0001. volatility in a single security because should be submitted by December 3, • Hand Delivery or Courier: West there may be instances of a discrete 2019. Building, Ground Floor, Room W12– event that ultimately impacts the value For the Commission, by the Division of 140, 1200 New Jersey Avenue SE, of the individual security and that an Trading and Markets, pursuant to delegated between 9 a.m. and 5 p.m., Monday MWCB Halt will be triggered during a authority.20 through Friday, except Federal holidays. period of significant volatility across Jill M. Peterson, • Fax: 1–202–493–2251. markets that may not correlate to the • Assistant Secretary. Each submission must include the fundamental value of a single [FR Doc. 2019–23548 Filed 10–28–19; 8:45 am] Agency name and the docket number for security? 19 this notice. Note that DOT posts all BILLING CODE 8011–01–P Comments may be submitted by any comments received without change to of the following methods: www.regulations.gov, including any personal information included in a Electronic Comments DEPARTMENT OF TRANSPORTATION • Use the Commission’s internet comment. Please see the Privacy Act comment form (http://www.sec.gov/ Federal Motor Carrier Safety heading below. rules/sro.shtml); or Administration Docket: For access to the docket to • Send an email to rule-comments@ read background documents or [Docket No. FMCSA–2019–0239] sec.gov. Please include File Number SR– comments, go to www.regulations.gov at any time or visit Room W12–140 on the NASDAQ–2019–057 on the subject line. Hours of Service of Drivers: ground level of the West Building, 1200 Application for Exemption; Small Paper Comments New Jersey Avenue SE, Washington, Business in Transportation Coalition • Send paper comments in triplicate DC, between 9 a.m. and 5 p.m., ET, to Secretary, Securities and Exchange AGENCY: Federal Motor Carrier Safety Monday through Friday, except Federal Commission, 100 F Street NE, Administration (FMCSA), DOT. holidays. The on-line FDMS is available Washington, DC 20549–1090. ACTION: Notice of application for 24 hours each day, 365 days each year. All submissions should refer to File exemption; request for comments. Privacy Act: In accordance with 5 Number SR–NASDAQ–2019–057. This U.S.C. 553(c), DOT solicits comments file number should be included on the SUMMARY: FMCSA announces that the from the public to better inform its subject line if email is used. To help the Small Business in Transportation rulemaking process. DOT posts these Commission process and review your Coalition (SBTC) seeks reconsideration comments, without edit, including any of its application for exemption from the personal information the commenter 18 See Notice, supra note 3, at 35902. provides, to www.regulations.gov, as 19 See id. at 35903. 20 17 CFR 200.30–3(a)(57). described in the system of records

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notice (DOT/ALL–14 FDMS), which can Agency must provide the public an On July 9, 2018, FMCSA extended the be reviewed at www.dot.gov/privacy. opportunity to inspect the information public comment period at the request of FOR FURTHER INFORMATION CONTACT: Ms. relevant to the application, including the SBTC (83 FR 31836). The Agency Pearlie Robinson, FMCSA Driver and any safety analyses that have been received more than 1,900 comments to Carrier Operations Division; Office of conducted. The Agency must also the docket [Docket No. FMCSA–2018– Carrier, Driver and Vehicle Safety provide an opportunity for public 0180]. Most of the comments favored Standards; Telephone: (202) 366–4325; comment on the request. granting the exemption. On July 17, Email: [email protected]. If you have The Agency reviews safety analyses 2019, the Agency published notice of its questions on viewing or submitting and public comments submitted, and decision to deny SBTC’s application for material to the docket, contact Docket determines whether granting the exemption (84 FR 34250) and listed the Services, telephone (202) 366–9826. exemption would likely achieve a level following reasons for the denial: • SUPPLEMENTARY INFORMATION: of safety equivalent to, or greater than, Failing to provide the name of the the level that would be achieved by the individual or motor carrier that would I. Public Participation and Request for current regulation (49 CFR 381.305). be responsible for the use or operation Comments The decision of the Agency must be of CMVs under the exemption [49 CFR FMCSA encourages you to participate published in the Federal Register (49 381.310(b)(2)]; by submitting comments and related CFR 381.315(b)) with the reasons for • Failing to provide an estimate of the materials. denying or granting the application and, total number of drivers and CMVs that if granted, the name of the person or would be operated under the terms and Submitting Comments class of persons receiving the conditions of the exemption If you submit a comment, please exemption, and the regulatory provision [§ 381.310(c)(3)]; and • include the docket number for this from which the exemption is granted. Failing to explain how an notice (FMCSA–2019–0239), indicate The notice must also specify the equivalent level of safety would be the specific section of this document to effective period and explain the terms achieved [§ 381.310(c)(5)]. which the comment applies, and and conditions of the exemption. The IV. Request for Reconsideration of provide a reason for suggestions or exemption may be renewed (49 CFR Agency Decision recommendations. You may submit 381.300(b)). your comments and material online or Through this application SBTC is by fax, mail, or hand delivery, but III. Background requesting FMCSA to reconsider its please use only one of these means. On December 16, 2015, FMCSA denial of the exemption from the ELD FMCSA recommends that you include published the Electronic Logging rule. SBTC provided responses to each your name and a mailing address, an Devices and Hours of Service of FMCSA’s reasons for denying its email address, or a phone number in the Supporting Documents final rule (80 FR application. According to SBTC the body of your document so the Agency 78292). The ELD rule applies to most reason for not providing an estimate of can contact you if it has questions motor carriers and drivers who are the number of drivers and CMVs that regarding your submission. required to keep RODS. The compliance would be operating under the To submit your comments online, go date for the ELD requirement was exemption is that SBTC is a trade group, to www.regulations.gov and put the December 18, 2017. not a single carrier. SBTC argues that a docket number, ‘‘FMCSA–2019–0239’’ On June 5, 2018, FMCSA published trade group would not know the number in the ‘‘Keyword’’ box, and click SBTC’s application for exemption and of employees eligible for the exemption. ‘‘Search.’’ When the new screen requested public comment (83 FR SBTC deferred that question to the appears, click on ‘‘Comment Now!’’ 26140). SBTC reports it is a non-profit Agency because FMCSA is the button and type your comment into the trade organization with more than 8,000 custodian of MCS–150 industry data. text box in the following screen. Choose members. SBTC states that it SBTC believes that it has identified the whether you are submitting your ‘‘represents, promotes, and protects the percentage of carriers that would be comment as an individual or on behalf interest of small businesses in the affected by the exemption but does not of a third party and then submit. If you transportation industry. Through the know a way to extrapolate the number submit your comments by mail or hand exemption application, SBTC sought of drivers from the estimated 3.5 million delivery, submit them in an unbound relief from the ELD requirements for truck drivers in the U.S. without format, no larger than 81⁄2 by 11 inches, small private, common and contract deferring to FMCSA for that suitable for copying and electronic motor carriers with fewer than 50 information. filing. If you submit comments by mail employees.’’ SBTC argued: A copy of SBTC’s application for and would like to know that they reconsideration of the Agency’s denial reached the facility, please enclose a ‘‘[T]he ELD rule is not a ‘‘safety regulation’’ is available for review in the docket for per se as the FMCSA has concluded. Rather stamped, self-addressed postcard or it is a mechanism intended to enforce a safety this notice. envelope. FMCSA will consider all regulation by regulating the manner in which V. Equivalent Level of Safety comments and material received during a driver records and communicates his the comment period and may grant or compliance. That is, it is merely a tool to To ensure an equivalent level of not grant this application based on your determine compliance with an existing rule safety, SBTC suggests a return to paper comments. that regulates over-the-road drivers’ driving logs. According to SBTC, ‘‘Paper logs and on duty time, namely the actual safety were deemed sufficient to ensure II. Legal Basis regulation: the [hours-of- service] regulations adequate levels of safety for generations, FMCSA has authority under 49 U.S.C. codified at 49 CFR 395.3 and 395.5. However, more than 80 years. And the FMCSA 31136(e) and 31315 to grant exemptions the ELD rule is not a safety regulation itself. has already issued numerous Therefore, it is our position that this rule from certain parts of the Federal Motor does not itself impact safety, and that the exemptions that require carriers to Carrier Safety Regulations (FMCSRs). level of safety will not change based on revert to tracking their hours of service FMCSA must publish a notice of each whether or not our exemption application is using paper logs in lieu of ELDs . . .’’ exemption request in the Federal approved. That would require a change to the SBTC supports its argument with the Register (49 CFR 381.315(a)). The [hours-of-service rules].’’ belief that ELDs have caused reckless

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speeding and pose national security DATES: Please send your comments by minimum qualifications of drivers of threats. SBTC urges FMCSA to look November 29, 2019. OMB must receive CMVs in interstate commerce. carefully at the unintended your comments by this date in order to Motor carriers may not require or consequences of the ELD rule when act on the ICR. permit an unqualified driver to operate deciding whether or not to grant the All comments should reference a CMV. The foremost proof of driver exemption. SBTC also suggests that Federal Docket Management System qualification is the information that part FMCSA temporarily grant the Docket Number FMCSA–2019–0102. 391 requires be collected and exemption ‘‘if for no other reason than Interested persons are invited to submit maintained in the driver qualification to press the pause button while written comments on the proposed file (DQ file) (49 CFR 391.51). Motor [FMCSA] studies these unintended information collection to the Office of carriers must obtain this information consequences and their adverse effects Information and Regulatory Affairs, from sources specified in the on safety. We contend this would Office of Management and Budget. regulations, such as the driver, previous indeed achieve a greater level of overall Comments should be addressed to the employers of the driver, and officials of safety than the current status quo.’’ attention of the Desk Officer, the State of driver licensure. Motor Issued on: October 23, 2019. Department of Transportation/Federal carriers are not required to forward DQ Motor Carrier Safety Administration, information to FMCSA, but must Larry W. Minor, _ Associate Administrator for Policy. and sent via electronic mail to oira maintain the information in a DQ file [email protected], faxed to (202) and make it available to State and [FR Doc. 2019–23561 Filed 10–28–19; 8:45 am] 395–6974, or mailed to the Office of Federal safety investigators on demand. BILLING CODE 4910–EX–P Information and Regulatory Affairs, Through this ICR, FMCSA is asking Office of Management and Budget, OMB’s approval to renew and revise its DEPARTMENT OF TRANSPORTATION Docket Library, Room 10102, 725 17th estimate of the paperwork burden Street NW, Washington, DC 20503. imposed by its DQ file regulations. The Federal Motor Carrier Safety FOR FURTHER INFORMATION CONTACT: Ms. regulations have not been amended; the Administration Pearlie Robinson, FMCSA Driver and IC burden imposed on individual Carrier Operations Division Department drivers and motor carriers by the [Docket No. FMCSA–2019–0102] of Transportation, FMCSA, West regulations is unchanged. The current Building 6th Floor, 1200 New Jersey IC burden estimate approved by OMB is Agency Information Collection Avenue SE, Washington, DC 20590. 10.21 million hours. The Agency has Activities; Renewal of a Currently- Telephone: 202–366–4325. Email: increased its estimate of the total IC Approved Collection: Driver [email protected]. burden from 10.21 million hours to Qualification Files SUPPLEMENTARY INFORMATION: 12.26 million hours. The increase in burden hours is primarily the result of Title: Driver Qualification Files. AGENCY: Federal Motor Carrier Safety a larger driver population and a higher Administration (FMCSA), DOT. OMB Control Number: 2126–0004. driver turnover rate, both of which Type of Request: Renewal and affect the volume of documents ACTION: Notice and request for revision of a currently-approved comments. produced and filed in DQ files. This information collection. revised ICR removes the medical SUMMARY: In accordance with the Respondents: CMV motor carriers and examiner’s certificate recordkeeping Paperwork Reduction Act of 1995 drivers. requirement from the estimate of burden (PRA), FMCSA announces its plan to Estimated Number of Respondents: hours and cost to eliminate double submit the Information Collection 6.89 million (6.35 million drivers + 0.54 counting. Although the currently Request (ICR) described below to the million motor carriers). approved ICR did not monetize driver Office of Management and Budget Expiration Date: January 31, 2020. and motor carrier burden hours, the (OMB) for its review and approval and Frequency of Response: The revised ICR monetizes such burden. invites public comment. FMCSA information on some DQ documents is On June 10, 2019, FMCSA published requests approval to revise and renew only provided one time, such as that a Federal Register notice allowing for a an ICR titled ‘‘Driver Qualification furnished at the time the individual 60-day comment period on this ICR. Files,’’ OMB Control Number 2126– applies for employment as a driver. There were no comments submitted to 0004. The ICR estimates the burden Other information must be obtained by the docket in response to that notice. the motor carrier within 30 days of the commercial motor vehicle (CMV) Public Comments Invited drivers and motor carriers incur to date the driver begins to drive a CMV comply with the reporting and for the employer. Other information, FMCSA requests that you comment recordkeeping tasks required for motor such as the driver’s motor vehicle on any aspect of this information carriers to maintain driver qualification record, is only updated once a year. collection, including: (1) Whether the (DQ) files. The Agency’s regulations Estimated Total Annual Burden: proposed collection is necessary for pertaining to maintaining DQ files are 12.26 million hours. FMCSA to perform its functions; (2) the unchanged and impose no increased accuracy of the estimated burden; (3) Background information collection (IC) burden on ways for FMCSA to enhance the quality, individual drivers and motor carriers. The Motor Carrier Safety Act of 1984 usefulness, and clarity of the collected However, the Agency increases its (Pub. L. 98–554, Title II, 98 Stat. 2834 information; and (4) ways that the estimate of the total IC burden of these (October 30, 1984)) requires the burden could be minimized without regulations primarily because both the Secretary of Transportation to issue reducing the quality of the collected number of CMV drivers and the regulations pertaining to commercial information. The Agency will frequency of their hiring have increased motor vehicle (CMV) safety. Part 391 of summarize or include your comments in since the Agency’s 2016 estimate of this volume 49 of the Code of Federal the request for OMB’s clearance of this burden. Regulations (CFR) contains the information collection.

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Issued under the authority delegated in 49 applicants who comply with all A. Program Description CFR 1.87 on: October 23, 2019 submission requirements described in 1. Overview Kelly Regal, this notice and submit applications Associate Administrator for Office of through www.Grants.gov will be eligible Under this NOFO, a total of Research and Information Technology. for award. For any supporting $24,027,500 is available for eligible [FR Doc. 2019–23562 Filed 10–28–19; 8:45 am] application materials that an applicant capital project costs and preconstruction BILLING CODE 4910–EX–P is unable to submit via www.Grants.gov, planning activities for eligible Maglev an applicant may submit an original and projects as discussed further in section two (2) copies to Amy Houser, Office of C(3). The $24,027,500 is composed of DEPARTMENT OF TRANSPORTATION Program Delivery, Federal Railroad funding from two sources, $14,027,500 in 2008 Funds and $10,000,000 in 2019 Administration, 1200 New Jersey Federal Railroad Administration Funds. Avenue SE, Room W36–412, Section 102 of the Technical Notice of Funding Opportunity for Washington, DC 20590. However, due to Corrections Act amended sections Magnetic Levitation Deployment delays caused by enhanced screening of 1101(a)(18) and 1307 of SAFETEA–LU Projects mail delivered via the U.S. Postal and provided $45,000,000 in contract AGENCY: Federal Railroad Service, applicants are advised to use authority for each of fiscal years 2008 Administration (FRA), Department of other means of conveyance (such as and 2009 for Maglev projects.2 Based Transportation. courier service) to assure timely receipt upon the clear Congressional direction ACTION: Notice of funding opportunity of materials before the application in the Technical Corrections Act, the (NOFO or notice). deadline. $14,027,500 remaining for award and available under this NOFO is for the FOR FURTHER INFORMATION CONTACT: For SUMMARY: This notice details the Pittsburgh, Baltimore-Washington, and further information regarding the application requirements and Atlanta-Chattanooga projects only. procedures to obtain grant 1 funding for Maglev Grants Program, please contact In the 2019 Appropriation, Congress eligible projects under the Magnetic Ruthie Americus, Office of Policy and appropriated an additional $10,000,000 Levitation Technology Deployment Planning, Federal Railroad for the deployment of magnetic Program (Maglev Grants Program). Administration, 1200 New Jersey levitation transportation projects, Maglev Grants Program funding under Avenue SE, Room W36–403, consistent with the language in section this notice is provided by two sources, Washington, DC 20590; email: 1307(a) through (c) of SAFETEA–LU, as totaling $24,027,500. This funding [email protected]; phone: 202– amended by section 102 of the includes $10,000,000 (2019 Funds) as 493–0431. Grant application submission Technical Corrections Act. The 2019 appropriated by the Consolidated and processing questions should be Funds are not limited to the above three Appropriations Act, 2019, (2019 addressed to Amy Houser, Office of projects and are available to any Appropriation) and an additional Program Delivery, Federal Railroad otherwise eligible Maglev project. $14,027,500 (2008 Funds) as authorized Administration, 1200 New Jersey To reiterate, only the Pittsburgh, by sections 1101(a)(18) and 1307 of the Avenue SE, Room W36–412, Baltimore-Washington, and Atlanta- Safe, Accountable, Flexible, Efficient Washington, DC 20590; email: Chattanooga projects are eligible for the Transportation Equity Act: A Legacy for [email protected]; phone: 202–493– full $24,027,500 available under this Users SAFETEA–LU, (SAFETEA–LU), 0303. notice from the remaining 2008 Funds as amended by the SAFETEA–LU ($14,027,500) and the 2019 Funds Technical Corrections Act of 2008, SUPPLEMENTARY INFORMATION: ($10,000,000). Applicants with (Technical Corrections Act). There are Notice to applicants: FRA otherwise eligible Maglev projects may differing requirements for each of these recommends that applicants read this apply only for the $10,000,000 in 2019 funding sources as described in this notice in its entirety prior to preparing Funds available under this notice. notice. The opportunities described in application materials. Definitions of key 2. Definitions of Key Terms this notice are made available under terms used throughout the NOFO are Catalog of Federal Domestic Assistance provided in section A(2) below. These a. ‘‘Full Project Cost’’ means the total (CFDA) number 20.318, ‘‘Maglev Project key terms are capitalized throughout the capital costs of a Maglev project Selection Program—SAFETEA–LU.’’ NOFO. There are several administrative 2 SAFETEA–LU allocated 50 percent of the DATES: Applications for funding under prerequisites and eligibility this solicitation are due no later than available funding to a project between Las Vegas– requirements described herein that Primm, NV and the other 50 percent to a project 5:00 p.m. EDT November 29, 2019. applicants must comply with. east of the Mississippi River. In the Joint Applications for funding, or Additionally, applicants should note Explanatory Statement of the House Transportation supplemental material in support of an and Infrastructure Committee and the Senate that the required Project Narrative application, received after 5:00 p.m. Environmental and Public Works; Banking, Housing component of the application package and Urban Affairs; and Commerce, Science and EDT on November 29, 2019 will not be may not exceed 25 pages in length. Transportation Committees accompanying the considered for funding. Incomplete Technical Corrections Act, Congress explained that applications will not be considered for Table of Contents in amending SAFETEA–LU to allow FRA discretion funding. See section D of this notice for to award funds to ‘‘projects’’ located east of the Mississippi River, ‘‘the intent is to limit the eligible additional information on the A. Program Description B. Federal Award Information projects to three existing projects east of the application process. Mississippi River: Pittsburgh, Baltimore- C. Eligibility Information ADDRESSES: Applications must be Washington, and Atlanta-Chattanooga.’’ Congress D. Application and Submission Information submitted via www.Grants.gov. Only repurposed the funds originally allocated to the Las E. Application Review Information Vegas–Primm, NV project in the Consolidated F. Federal Award Administration Appropriations Act, 2014, Div. L, Tit. I, Sec. 192, 1 The term ‘‘grant’’ is used throughout this Public Law 113–76, (2014), for new intercity document and is intended to reference funding Information passenger rail capital, railroad safety technology, awarded through a grant agreement, as well as G. Federal Awarding Agency Contacts and corridor planning projects. This funding was funding awarded through a cooperative agreement. H. Other Information competed in 2014 and awarded in 2015.

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including eligible project costs and the 3. Award Type will not exceed 80 percent. The cost of stations, vehicles and equipment. FRA will make awards for projects estimated total cost of a project must be b. ‘‘Magnetic Levitation’’ or ‘‘Maglev’’ selected under this notice through grant based on the best available information, means transportation systems agreements and/or cooperative including engineering studies, studies of employing magnetic levitation that agreements. Grant agreements are used economic feasibility, environmental would be capable of safe use by the when FRA does not expect to have analyses, and information on the public at a speed in excess of 240 miles substantial Federal involvement in expected use of equipment and/or per hour. carrying out the funded activity. facilities. Additionally, in preparing c. ‘‘National Environmental Policy Cooperative agreements allow for estimates of total project costs, Act (NEPA)’’ is a Federal law that substantial Federal involvement in applicants should refer to FRA’s cost requires Federal agencies to analyze the carrying out the agreed upon estimate guidance documentation, environmental impacts of a proposed investment, including technical ‘‘Capital Cost Estimating: Guidance for action, in consultation with appropriate assistance, review of interim work Project Sponsors,’’ which is available at: Federal, State, and local authorities, and products, and increased program https://www.fra.dot.gov/Page/P0926. The minimum 20 percent non-Federal with the public. The NEPA class of oversight. The funding provided under match may be composed of public action depends on the nature of the this NOFO will be made available to sector (e.g., State or local) and/or private proposed action, its complexity, and the grantees on a reimbursable basis. sector funding. FRA will not consider potential impacts. For purposes of this Applicants must certify that their any Federal financial assistance, nor any NOFO, NEPA also includes all related expenditures are allowable, allocable, non-Federal funds already expended (or Federal laws and regulations including: reasonable, and necessary to the otherwise encumbered) that do not The Clean Air Act, section 4(f) of the approved project before seeking comply with 2 CFR 200.458 toward the Department of Transportation Act, reimbursement from FRA. Additionally, matching requirement. FRA is limiting section 7 of the Endangered Species Act, the grantee is expected to expend the first 20 percent of the non-Federal and section 106 of the National Historic matching funds at the required Preservation Act. Additional match to cash contributions only. percentage concurrent with Federal Eligible in-kind contributions may be information regarding FRA’s funds throughout the life of the project. environmental processes and accepted for any non-Federal matching See an example of standard terms and beyond the first 20 percent. In-kind requirements are located at https:// conditions for FRA grant awards at: www.fra.dot.gov/environment. contributions, including the donation of https://www.fra.dot.gov/eLib/details/ services, materials, and equipment, may d. ‘‘State’’ has the meaning such term L05285. has under 23 U.S.C. 101(a). be credited as a project cost, in a C. Eligibility Information uniform manner consistent with 2 CFR B. Federal Award Information This section of the notice explains 200.306. Moreover, FRA encourages 1. Available Award Amount applicant eligibility, cost sharing and applicants to broaden their funding table in applications. FRA will give matching requirements, and project FRA will make up to $24,027,500 in preference to applications proposing eligibility. Applications that do not funding available under this notice, non-Federal share exceeding the meet the requirements in this section composed of $14,027,500 in 2008 Funds minimum 20 percent and consisting of will be ineligible for funding. and $10,000,000 in 2019 Funds. Should funding from multiple sources to Instructions for submitting eligibility additional Maglev funds become demonstrate broad participation and information to FRA are detailed in available after the release of this NOFO, cost sharing from affected stakeholders. FRA may elect to award such additional section D of this NOFO. Before applying, applicants should funds to applications received under 1. Eligible Applicants carefully review the principles for cost this NOFO. Applicants must be a State, States, or sharing or matching in 2 CFR 200.306. 2. Award Size an authority designated by one or more See section D(2)(a)(iii) for required States.3 If the proposed Maglev service application information on non-Federal There are no predetermined minimum match and section E for further would operate in more than one State, or maximum dollar thresholds for discussion of FRA’s consideration of a single State or designated State awards, and FRA may choose to select matching funds in the review and authority should apply on behalf of all one or more eligible projects for selection process. FRA will approve pre- participating States. FRA encourages funding. FRA may not award grants to award costs consistent with 2 CFR States to submit applications through all eligible applications, or even those 200.458. See section D(6). applications that meet or exceed the their respective Departments of stated evaluation criteria (see section E, Transportation. Eligible applicants may 3. Project Eligibility Application Review Information). reference entities that are not eligible Funding under this NOFO is available FRA may award less than the amount applicants in an application as a project for eligible project costs for eligible of funding requested by the applicant partner. Maglev projects. Eligible project costs based on considerations such as 2. Cost Sharing or Matching are: (1) The capital cost of the fixed guideway infrastructure of a Maglev individual project scope and total The Federal share of Full Project project including land, piers, available funding. In such cases, Costs will not exceed 80 percent. The guideways, propulsion equipment and applicants must be able to demonstrate funds available under this NOFO are other components attached to the proposed projects are still viable and available only for eligible project costs guideways, power distribution facilities can be completed with the amount of eligible Maglev projects. As a result, (including substations), control and awarded. under this NOFO the Federal share of FRA strongly encourages applicants to communications facilities, access roads, the estimated total eligible project costs identify and include other State, local, and storage, repair, and maintenance public, or private funding or financing 3 See section D(2)(a)(iv) for supporting facilities and (2) preconstruction to support the proposed project to documentation required to demonstrate eligibility planning activities. Eligible project costs maximize competitiveness. under this eligibility category. exclude new stations and rolling stock,

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as well as costs incurred solely for land than 5:00 p.m. EDT, on November 29, IX. Project Implementation and See D.2.a.ix acquisition pursuant to securing 2019. FRA reserves the right to modify Management. X. Planning Readiness ...... See D.2.a.x operation right-of-way. this deadline. General information for XI. Environmental Readiness ..... See D.2.a.xi Eligible Maglev projects must: (1) submitting applications through Involve a segment or segments of a high- Grants.gov can be found at: https:// The above content must be provided speed ground transportation corridor; www.fra.dot.gov/Page/P0270. in a narrative statement submitted by (2) result in an operating transportation For any supporting application the applicant. The Project Narrative may facility that provides a revenue materials that an applicant cannot not exceed 25 pages in length producing service; (3) be approved by submit via Grants.gov, an applicant may (excluding cover pages, table of the Secretary based on an application submit an original and two (2) copies to contents, and supporting submitted to the Secretary of Amy Houser, Office of Program documentation). FRA will not review or Transportation by a State or authority Delivery, Federal Railroad consider Project Narratives beyond the designated by one or more States, and Administration, 1200 New Jersey 25-page limitation. If possible, (4) for 2008 Funds, be an existing Avenue SE, Room W36–412, applicants should submit supporting Maglev project in Pittsburgh, Baltimore- Washington, DC 20590. However, due to documents via website links rather than Washington, or Atlanta-Chattanooga. delays caused by enhanced screening of hard copies. If supporting documents With respect to the second criterion, mail delivered via the U.S. Postal are submitted, applicants must clearly Congress titled section 1307 of Service, FRA advises applicants to use identify the page number of the relevant SAFETEA–LU ‘‘Deployment of other means of conveyance (such as portion of the supporting Magnetic Levitation Transportation courier service) to assure timely receipt documentation in the Project Narrative. Projects’’ and provided funding through of materials before the application The Project Narrative must adhere to the section 1101(a)(18) of SAFETEA–LU, as deadline. Additionally, if documents following outline. amended by the Technical Corrections can be obtained online, providing i. Cover Page: Include a cover page Act, for the ‘‘deployment of magnetic instructions to FRA on how to access that lists the following elements in levitation projects.’’ Congress also files on a referenced website may also either a table or formatted list: provided funding through the 2019 be sufficient. Project Title Appropriation for the ‘‘deployment of Applicant 2. Content and Form of Application magnetic levitation projects.’’ FRA The amount of Federal funding Submission interprets this language as evidencing a requested Congressional intent that the Federal FRA strongly advises applicants to The amount of non-Federal match funds be used to directly advance and read this section carefully. Applicants The total project cost result in the construction of a Maglev must submit all required information City(ies), State(s) where the project is project. and components of the application located Funding under this NOFO may not be package to be considered for funding. Congressional district(s) where the used for costs that are included in, or Required documents for an project is located used to meet cost sharing or matching application package are outlined in the ii. Project Summary: Provide a brief requirements of, any other Federally- checklist below. financed award or program. If the • 4–6 sentence summary of the proposed Project Narrative (see D.2.a) project and what the project will entail. applicant is seeking additional funding • Statement of Work (see D.2.b.i) for a project that has already received • SF424—Application for Federal Include challenges the proposed project Federal financial assistance, costs Assistance aims to address, and summarize the associated with the scope of work for • Either: SF 424A—Budget Information intended outcomes and anticipated the existing Federal award are not for Non-Construction projects or SF benefits that will result from the eligible for funding under this NOFO. 424C—Budget Information for proposed project. Only new scope (e.g., new deliverables) Construction iii. Project Funding Summary: is eligible for funding under this NOFO. • Either: SF 424B—Assurances for Non- Indicate in table format the amount of Construction projects or SF 424D— Federal funding requested, the proposed D. Application and Submission Assurances for Construction non-Federal match, and total project Information • FRA’s Additional Assurances and cost. Identify the source(s) of matching Required documents for the Certifications funds, including whether the match is application are outlined in the following • SF LLL—Disclosure of Lobbying provided from public- vs. private-sector paragraphs. Applicants must complete Activities sources, and clearly and distinctly reflect these funds as part of the total and submit all components of the a. Project Narrative application. See section D(2) for the project costs in the application budget. application checklist. FRA welcomes This section describes the minimum Additionally, identify any other sources the submission of other relevant content required in the Project Narrative of Federal funds committed to the supporting documentation that may of the grant application. The Project project and any pending Federal have been developed by the applicant Narrative must follow the basic outline requests. Also, note if the requested (planning, environmental below to address the program Federal funding must be obligated or documentation, engineering and design requirements and assist evaluators in spent by a certain date due to documentation, letters of support, etc.) locating relevant information. dependencies or relationships with that will not count against the Project other Federal or non-Federal funding I. Cover Page ...... See D.2.a.i sources, related projects, law, or other Narrative 25-page limit. II. Project Summary ...... See D.2.a.ii III. Project Funding Summary ... See D.2.a.iii factors. Include funding commitment 1. Address To Request Application IV. Applicant Eligibility Criteria See D.2.a.iv letters outlining funding agreements, as Package V. Project Eligibility Criteria ...... See D.2.a.v attachments or in an appendix. If Applicants must submit all VI. Detailed Project Description See D.2.a.vi applicable, provide the type and VII. Project Location ...... See D.2.a.vii application materials in their entirety VIII. Evaluation and Selection See D.2.a.viii estimated value of any proposed in-kind through http://www.Grants.gov no later Criteria. contributions, and demonstrate how the

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in-kind contributions meet the requirements in 2 CFR 200.306.

EXAMPLE PROJECT FUNDING TABLE

Task No. Task name/project component Cost Percentage of total cost

1

2

Total Project Cost

Federal Funds Received from Previous Grants

Maglev Federal Funding Request

Non-Federal Funding/Match Cash:

In-Kind:

Portion of Non-Federal Funding from the Private Sector

Portion of Non-Federal Funding from the Public Sector

Pending Federal Funding Requests

iv. Applicant Eligibility Criteria: seeking funding for a project that has and functional responsibilities Explain how the applicant meets the already received Federal financial associated with the project. Describe applicant eligibility criteria outlined in assistance, and if applicable, explain experience in managing and overseeing section C(1) of this notice. For how the new scope proposed to be similar projects. authorities designated by one or more funded under this NOFO relates to the x. Planning Readiness: Provide States, the explanation must include previous scope. information about the planning process citations to the applicable enabling vii. Project Location: Include that analyzed the investment needs and legislation. geospatial data for the project, as well as service objectives of the project. If v. Project Eligibility Criteria: Explain a map of the project’s location. Include applicable, cite sources of this how the project meets the project the Congressional districts in which the information from a service development eligibility criteria in section C(3) of this project will take place. plan, State or regional rail plan, or notice. viii. Evaluation and Selection Criteria: similar planning document where the vi. Detailed Project Description: Include a thorough discussion of how project has been identified for solving a Include a detailed project description the proposed project meets all the that expands upon the summary evaluation and selection criteria, as specific existing transportation problem, required above. This detailed outlined in section E of this notice. If an and makes the case for investing in the description should provide, at a application does not sufficiently address proposed solution. Describe the plan to minimum: Additional background on the evaluation criteria and the selection finance any planning, land acquisition, the transportation challenges the project criteria, it is unlikely to be a competitive buildout, testing, and implementation of aims to address, the expected users, application. For the life-cycle cost the project, and specify long term beneficiaries, and outcomes of the selection criteria, applicants should financial plans to own, operate and project, and any other information the demonstrate a credible plan to maintain maintain Maglev services. applicant deems necessary to justify the their asset without having to rely on xi. Environmental Readiness: proposed project. Be specific regarding Federal funding including a description Describe anticipated environmental or the relevance or relationship of the of the applicants’ approach to ensuring historic preservation impacts associated proposed project to other investments in operations and maintenance will not be with the proposed project, any the region along the corridor, as well as underfunded in future years. environmental or historic preservation the operating changes that are ix. Project Implementation and analyses that have been prepared, and anticipated to result from the Management: Describe proposed project any ongoing progress toward completing introduction and integration of Maglev implementation and project environmental documentation or services within existing transportation management arrangements for the full clearance required for the proposed corridors and assess the major risks Maglev corridor project, including the project under NEPA as defined in this (including safety risks) or obstacles to activities proposed in this application. NOFO. Provide, as available, a schedule Maglev’s successful deployment and Include descriptions of the expected to complete these actions. Applicants operation. Provide a detailed summary arrangements for project contracting, are encouraged to contact FRA and of all work completed to date, including contract oversight, change-order obtain preliminary direction regarding any preliminary engineering work, the management, risk management, and the appropriate NEPA class of action project’s previous accomplishments and conformance to Federal requirements and required environmental funding history including Federal for project progress reporting (see documentation. Generally, projects will financial assistance, and a chronology of https://www.fra.dot.gov/Page/P0274). be ineligible to receive funding if they key documents produced and funding Identify key personnel involved in the have begun construction activities prior events (e.g., grants and financing). An implementation and management of the to the applicant/grantee receiving applicant should specify whether it is project, and describe their qualifications written approval from FRA that all

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environmental and historical analyses recommends that applicants start the successfully register in Grants.gov. The have been completed. registration process as early as possible SAM database is the repository for to prevent delays that may preclude standard information about Federal b. Additional Application Elements submitting an application package by financial assistance applicants, Applicants must submit: the application deadline. Applications recipients, and subrecipients. i. A Statement of Work (SOW) will not be accepted after the due date. Organizations that have previously addressing the scope, schedule, and Delayed registration is not an acceptable submitted applications via Grants.gov budget for the proposed project if it justification for an application are already registered with SAM, as it is were selected for award. The SOW extension. a requirement for Grants.gov must contain sufficient detail so FRA, FRA may not make a grant award to registration. Please note, however, that and the applicant, can understand the an applicant until the applicant has applicants must update or renew their expected outcomes of the proposed complied with all applicable Data SAM registration at least once per year work to be performed and can Universal Numbering System (DUNS) to maintain an active status. Therefore, monitor progress toward completing and SAM requirements, and if an it is critical to check registration status project tasks and deliverables during applicant has not fully complied with well in advance of the application a prospective grant’s period of the requirements by the time the Federal deadline. If an applicant is selected for performance. Applicants must use awarding agency is ready to make a an award, the applicant must maintain FRA’s standard SOW, schedule, and Federal award, the Federal awarding an active SAM registration with current budget templates to be considered for agency may determine that the information throughout the period of award. The templates are located at applicant is not qualified to receive a the award. Information about SAM https://www.fra.dot.gov/Page/P0325. Federal award and use that registration procedures is available at When preparing the budget, the total determination as a basis for making a www.sam.gov. cost of a project must be based on the Federal award to another applicant. (Please note that if a Dun & Bradstreet c. Create a Grants.gov Username and best available information as Password indicated in cited references that DUNS number must be obtained or include engineering studies, studies renewed, this may take a significant Applicants must complete an of economic feasibility, amount of time to complete.) Late Authorized Organization Representative environmental analyses, and applications that are the result of a (AOR) profile on www.Grants.gov and information on the expected use of failure to register or comply with create a username and password. equipment or facilities Grants.gov applicant requirements in a Applicants must use the organization’s ii. SF424—Application for Federal timely manner will not be considered. If DUNS number to complete this step. an applicant has not fully complied Assistance Additional information about the with the requirements by the iii. Either: SF 424A—Budget registration process is available at: submission deadline, the application Information for Non-Construction https://www.grants.gov/web/grants/ will not be considered. To submit an projects or SF 424C—Budget applicants/organization- application through Grants.gov, Information for Construction registration.html. applicants must: iv. Either: SF 424B—Assurances for d. Acquire Authorization for Your AOR Non-Construction projects or SF a. Obtain a DUNS Number From the E-Business Point of Contact 424D—Assurances for Construction A DUNS number is required for (E-Biz POC) v. FRA’s Additional Assurances and Grants.gov registration. The Office of The E-Biz POC at the applicant’s Certifications; and Management and Budget requires that organization must respond to the vi. SF LLL—Disclosure of Lobbying all businesses and nonprofit applicants registration email from Grants.gov and Activities. for Federal funds include a DUNS login at www.Grants.gov to authorize the Forms needed for the electronic number in their applications for a new applicant as the AOR. Please note there application process are at award or renewal of an existing award. can be more than one AOR for an www.Grants.gov. A DUNS number is a unique nine-digit organization. sequence recognized as the universal c. Post-Selection Requirements standard for the government in e. Submit an Application Addressing See section F(2) of this notice for post- identifying and keeping track of entities All Requirements Outlined in This selection requirements. receiving Federal funds. The identifier NOFO If an applicant experiences difficulties 3. Unique Entity Identifier, System for is used for tracking purposes and to at any point during this process, please Award Management (SAM), and validate address and point of contact call the Grants.gov Customer Center Submission Instructions information for Federal assistance applicants, recipients, and sub- Hotline at 1–800–518–4726, 24 hours a To apply for funding through recipients. The DUNS number will be day, 7 days a week (closed on Federal Grants.gov, applicants must be properly used throughout the grant life cycle. holidays). For information and registered in SAM before submitting an Obtaining a DUNS number is a free, instructions on each of these processes, application, provide a valid unique one-time activity. Applicants may please see instructions at: http:// entity identifier, and continue to obtain a DUNS number by calling 1– www.grants.gov/web/grants/applicants/ maintain an active SAM registration all 866–705–5711 or by applying online at apply-for-grants.html as described in detail below. Complete http://www.dnb.com/us. Note: Please use generally accepted instructions on how to register and formats such as .pdf, .doc, .docx, .xls, submit an application can be found at b. Register With the SAM at .xlsx and .ppt, when uploading www.Grants.gov. Registering with www.SAM.gov attachments. While applicants may Grants.gov is a one-time process; All applicants for Federal financial embed picture files, such as .jpg, .gif, however, it can take up to several weeks assistance must maintain current and .bmp, in document files, applicants for first-time registrants to receive registrations in the SAM database. An should not submit attachments in these confirmation and a user password. FRA applicant must be registered in SAM to formats. Additionally, the following

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formats will not be accepted: .com, .bat, this NOFO may not be used for costs vi. The degree to which the project .exe, .vbs, .cfg, .dat, .db, .dbf, .dll, .ini, that are included as a cost or used to will successfully operate in the variety .log, .ora, .sys, and .zip. meet cost sharing or matching of Maglev operating conditions which requirements of any other Federally are to be expected in the United States. 4. Submission Dates and Times financed project or program. For example, these conditions might Applicants must submit complete include a variety of at-grade, elevated 7. Other Submission Requirements applications in their entirety to and depressed guideway structures, www.Grants.gov no later than 5:00 p.m. If an applicant experiences difficulties extreme temperatures, and intermodal EDT, November 29, 2019. FRA reviews at any point during this process, please connections at terminals. www.Grants.gov information on dates/ call the Grants.gov Customer Center vii. The feasibility of the project times of applications submitted to Hotline at 1–800–518–4726, 24 hours a meeting a top speed of at least 240 miles determine timeliness of submissions. day, 7 days a week (closed on Federal per hour (MPH). FRA will also consider Late applications will be neither holidays). For information and the ability to meet higher speeds as well reviewed nor considered. Delayed instructions on each of these processes, as the duration that speeds of at least registration is not an acceptable reason please see instructions at: http:// 240 MPH can be attained. for late submission. Applicants are www.grants.gov/web/grants/applicants/ strongly encouraged to apply early to apply-for-grants.html. c. Selection Criteria ensure that all materials are received E. Application Review Information In addition to the eligibility and before this deadline. completeness review and the evaluation To ensure a fair competition of 1. Criteria criteria outlined in this section, the FRA limited discretionary funds, the a. Eligibility and Completeness Review Administrator (or his designee) will following conditions are not valid determine the final selection of projects reasons to permit late submissions: (1) FRA will first screen each application for program funding. Failure to complete the registration for eligibility (eligibility requirements i. FRA will take into account the process before the deadline; (2) failure are outlined in section C of this notice), following key Departmental objectives: to follow Grants.gov instructions on completeness (application a. Supporting economic vitality at the how to register and apply as posted on documentation and submission national and regional level; its website; (3) failure to follow all requirements are outlined in section D b. Leveraging Federal funding to instructions in this NOFO; and (4) of this notice), and the 20 percent attract other, non-Federal sources of technical issues experienced with the minimum match. infrastructure investment; applicant’s computer or information b. Evaluation Criteria c. Preparing for future operations and technology environment. FRA subject-matter experts will maintenance costs associated with the 5. Intergovernmental Review evaluate all eligible and complete project’s life-cycle, as demonstrated by Executive Order 12372 requires applications against the following a credible plan to maintain assets applicants from State and local units of evaluation criteria: without having to rely on future Federal government or other organizations i. The extent to which the project funding; providing services within a State to would feasibly integrate Maglev systems d. Using innovative approaches to submit a copy of the application to the with conventional rail systems, such as improve safety and expedite project State Single Point of Contact (SPOC), if establishing efficient connections and delivery; and, one exists, and if this program has been transfers. e. Holding grant recipients selected for review by the State. ii. The extent to which funds awarded accountable for their performance and Applicants must contact their State under this section would result in achieving specific, measurable SPOC to determine if the program has investments that are beneficial not only outcomes identified by grant applicants. been selected for State review. to the Maglev project, but also to other ii. In determining the allocation of current or near-term transportation program funds, FRA may also consider 6. Funding Restrictions projects. geographic diversity, diversity in the Consistent with 2 CFR 200.458, FRA iii. The degree to which the project size of the systems receiving funding, will only approve pre-award costs if demonstrates: (a) The potential for the applicant’s receipt of other such costs are incurred pursuant to the public-private partnerships and (b) that competitive awards, projects located in negotiation and in anticipation of the the project will stand alone as a or that support transportation service in grant agreement and if such costs are complete, self-sustaining operation a qualified opportunity zone designated necessary for efficient and timely where fully allocated operating pursuant to 26 U.S.C. 1400Z–1, and the performance of the scope of work. expenses of the Maglev service are percentage of non-Federal share Under 2 CFR 200.458, grant recipients projected to be offset by revenues provided and whether such non-Federal must seek written approval from the attributable to the service. share is provided by multiple sources. FRA for pre-award activities to be iv. The extent of the demonstrated 2. Review and Selection Process eligible for reimbursement under the financial commitment to the grant. Activities initiated prior to the construction of the proposed project FRA will conduct a three-part execution of a grant or without written from both non-Federal public and application review process, as follows: approval may not be eligible for private sources. a. Screen applications for reimbursement or included as a v. The extent to which the project completeness and eligibility; grantee’s matching contribution. demonstrates coordination and b. Evaluate eligible applications As stated in section C(3), funding consistency with any applicable (completed by technical panels applying under this NOFO is not available for ongoing or completed environmental the evaluation criteria); and costs incurred for new stations, rolling and planning studies for passenger rail c. Select projects for funding stock, or solely for land acquisition on or connecting to the geographic route (completed by the FRA Administrator or (even acquisition to secure operational segment being proposed for Maglev his designee applying the selection right-of-way). Further, funding under investment. criteria).

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3. Reporting Matters Related to Integrity Transportation; and applicable Federal XII—Award Term and Condition for and Performance financial assistance and contracting Recipient Integrity and Performance Before making a Federal award with principles promulgated by the Office of Matters. Management and Budget. In complying a total amount of Federal share greater c. Performance Reporting than the simplified acquisition with these requirements, recipients threshold (see 2 CFR 200.88 Simplified must ensure that no concession Each applicant selected for funding agreements are denied or other Acquisition Threshold), FRA will must collect information and report on contracting decisions made based on review and consider any information the project’s performance using speech or other activities protected by about the applicant that is in the measures mutually agreed upon by FRA designated integrity and performance the First Amendment. If the Department determines that a recipient has failed to and the grantee to assess progress in system accessible through SAM achieving strategic goals and objectives. (currently the Federal Awardee comply with applicable Federal Performance and Integrity Information requirements, the Department may G. Federal Awarding Agency Contacts System (FAPIIS)). See 41 U.S.C. 2313. terminate the award of funds and An applicant, at its option, may disallow previously incurred costs, For further information regarding this review information in the designated requiring the recipient to reimburse any notice and the grants program, please integrity and performance systems expended award funds. contact Amy Houser, Office of Program accessible through SAM and comment Examples of administrative and Delivery, Federal Railroad on any information about itself that a national policy requirements include: 2 Administration, 1200 New Jersey Federal awarding agency previously CFR part 200; procurement standards; Avenue SE, Room W36–412, entered and is currently in the compliance with Federal civil rights Washington, DC 20590; email: designated integrity and performance laws and regulations; disadvantaged [email protected], or Ruthie system accessible through SAM. business enterprises; debarment and Americus, Office of Policy and FRA will consider any comments by suspension; drug-free workplace; FRA’s Planning, Federal Railroad the applicant, in addition to the other and OMB’s Assurances and Administration, 1200 New Jersey information in the designated integrity Certifications; Americans with Avenue SE, Room W36–403, Disabilities Act; safety requirements; and performance system, in making a Washington, DC 20590; email: NEPA; environmental justice and the judgment about the applicant’s integrity, [email protected]. business ethics, and record of Buy American Act, 41 U.S.C. 8301– performance under Federal awards 8305. Financial assistance made H. Other Information when completing the review of risk available under this NOFO, and projects posed by applicants as described in 2 assisted with such assistance, are All information submitted as part of CFR 200.205. subject to 49 U.S.C. 5333(a). or in support of any application shall See an example of standard terms and use publicly available data or data that F. Federal Award Administration conditions for FRA grant awards at can be made public and methodologies Information https://www.fra.dot.gov/eLib/details/ that are accepted by industry practice 1. Federal Award Notice L05285. and standards, to the extent possible. If the application includes information the FRA will announce applications 3. Reporting applicant considers to be a trade secret selected for funding in a press release a. Progress Reporting on Grant Activity or confidential commercial or financial and on the FRA website after the application review period. FRA will Each applicant selected for a grant information, the applicant should do the contact applicants with successful will be required to comply with all following: (1) Note on the front cover applications after announcement with standard FRA reporting requirements, that the submission ‘‘Contains information and instructions about the including quarterly progress reports, Confidential Business Information award process. This notification is not quarterly Federal financial reports, and (CBI)’’; (2) mark each affected page an authorization to begin proposed interim and final performance reports, ‘‘CBI’’; and (3) highlight or otherwise project activities. FRA requires as well as all applicable auditing, denote the CBI portions. satisfaction of applicable requirements monitoring and close out requirements. FRA protects such information from by the applicant and a formal agreement Reports may be submitted disclosure to the extent allowed under signed by both the grantee and the FRA, electronically. applicable law. In the event FRA including an approved scope, schedule, b. Additional Reporting receives a Freedom of Information Act and budget, to obligate the grant. Applicants selected for funding are (FOIA) request for the information, FRA 2. Administrative and National Policy required to comply with all reporting will follow the procedures described in Requirements requirements in the standard terms and its FOIA regulations at 49 CFR 7.17. In connection with any program or conditions for FRA grant awards Only information that is ultimately activity conducted with or benefiting including 2 CFR 180.335 and 2 CFR determined to be confidential under that from funds awarded under this notice, 180.350. See an example of standard procedure will be exempt from recipients of funds must comply with terms and conditions for FRA grant disclosure under FOIA. all applicable requirements of Federal awards at: https://www.fra.dot.gov/eLib/ Issued in Washington, DC. law, including, without limitation, the details/L05285. Quintin C. Kendall, Constitution of the United States; the If the Federal share of any Federal Deputy Administrator, Federal Railroad conditions of performance, award under this NOFO may include Administration. nondiscrimination requirements, and more than $500,000 over the period of other assurances made applicable to the performance, applicants are informed of [FR Doc. 2019–23535 Filed 10–28–19; 8:45 am] award of funds in accordance with the post award reporting requirements BILLING CODE 4910–06–P regulations of the Department of reflected in 2 CFR part 200, Appendix

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DEPARTMENT OF TRANSPORTATION Before OMB decides whether to Total Estimated Annual Burden Hour approve these proposed collections of Dollar Cost Equivalent: $304. Federal Railroad Administration information, it must provide 30-days’ Title: Rear End Marking Devices. [Docket No. FRA–2019–0004–N–18] notice for public comment. Federal law OMB Control Number: 2130–0523. requires OMB to approve or disapprove Abstract: Title 49 CFR part 221 Proposed Agency Information paperwork packages between 30 and 60 contains requirements for rear end Collection Activities; Comment days after the 30-day notice is marking devices. Railroads must give Request published. 44 U.S.C. 3507(b)–(c); 5 CFR FRA a detailed description of the type 1320.12(d); see also 60 FR 44978, 44983, of marking devices used for any AGENCY: Federal Railroad Aug. 29, 1995. OMB believes the 30-day locomotive operating singly or for cars Administration (FRA), U.S. Department notice informs the regulated community or locomotives operating at the end of of Transportation (DOT). to file relevant comments and affords a train (trailing end) to ensure they meet ACTION: Notice of information collection; the agency adequate time to digest minimum standards for visibility and request for comment. public comments before it renders a display. Specifically, part 221 requires decision. 60 FR 44983, Aug. 29, 1995. railroads to furnish a certification that SUMMARY: Under the Paperwork Therefore, respondents should submit each device has been tested in Reduction Act of 1995 (PRA) and its their respective comments to OMB accordance with current ‘‘Guidelines for implementing regulations, this notice within 30 days of publication to best Testing of Rear End Marking Devices.’’ announces that FRA is forwarding the ensure having their full effect. Additionally, part 221 requires railroads Information Collection Requests (ICRs) Comments are invited on the to furnish detailed test records, which abstracted below to the Office of following ICRs regarding: (1) Whether include the names of testing Management and Budget (OMB) for the information collection activities are organizations, description of tests, review and comment. The ICRs describe necessary for FRA to properly execute number of samples tested, and the test the information collections and their its functions, including whether the results, to demonstrate compliance with expected burden. On August 21, 2019, information will have practical utility; the performance standard. FRA published a notice providing a 60- (2) the accuracy of FRA’s estimates of Type of Request: Extension with day period for public comment on the the burden of the information collection change (revised estimates) of a currently ICRs. activities, including the validity of the approved collection. DATES: Interested persons are invited to methodology and assumptions used to Affected Public: Businesses submit comments on or before determine the estimates; (3) ways for (railroads). November 29, 2019. FRA to enhance the quality, utility, and Form(s): N/A. ADDRESSES: Submit written comments clarity of the information being Respondent Universe: 746 railroads + on the ICRs to the Office of Information collected; and (4) ways to minimize the 24 manufacturers. and Regulatory Affairs, Office of burden of information collection Frequency of Submission: On Management and Budget, 725 17th activities on the public, including the occasion. Street NW, Washington, DC 20503, use of automated collection techniques Total Estimated Annual Responses: 2. Attention: FRA Desk Officer. Comments or other forms of information Total Estimated Annual Burden: 1 2 may also be sent via email to OMB at technology. _ hours. the following address: oira The summaries below describe the Total Estimated Annual Burden Hour [email protected]. ICRs that FRA will submit for OMB Dollar Cost Equivalent: $152. FOR FURTHER INFORMATION CONTACT: Ms. clearance as the PRA requires: Title: System Safety Program. Hodan Wells, Information Collection Title: Filing of Dedicated Cars. OMB Control Number: 2130–0599. Clearance Officer, Office of Railroad OMB Control Number: 2130–0502. Abstract: FRA uses the collection of Safety, Regulatory Analysis Division, Abstract: Title 49 CFR part 215 information to ensure that commuter Federal Railroad Administration, 1200 contains freight car safety standards, and intercity passenger railroads New Jersey Avenue SE, Washington, DC including conditions for freight cars in establish and implement System Safety 20590 (telephone: (202) 493–0440) or dedicated service. ‘‘Dedicated service’’ Programs (SSPs) to improve the safety of Ms. Kim Toone, Information Collection means the exclusive assignment of their operations and to ensure Clearance Officer, Office of Information railroad cars to the transportation of compliance with the rule. Each railroad Technology, Federal Railroad freight between specified points under will use its SSP/SSP Plan to proactively Administration, 1200 New Jersey the conditions listed in 49 CFR 215.5(d), identify and mitigate or eliminate Avenue SE, Washington, DC 20590 including stenciling, or otherwise hazards and the resulting risk on its (telephone: (202) 493–6132). displaying, in clear legible letters on system at an early stage to reduce the SUPPLEMENTARY INFORMATION: The PRA, each side of the car body, the words number of railroad accidents, incidents, 44 U.S.C. 3501–3520, and its ‘‘Dedicated Service.’’ The railroad must and associated injuries, fatalities, and implementing regulations, 5 CFR part notify FRA in writing that the cars are property damage. A railroad has the 1320, require Federal agencies to issue to be operated in dedicated service. flexibility to tailor an SSP to its specific two notices seeking public comment on Type of Request: Extension without operations. An SSP will be information collection activities before change of a currently approved implemented when FRA approves a OMB may approve paperwork packages. collection. railroad’s submitted SSP Plan. Under See 44 U.S.C. 3506, 3507; 5 CFR 1320.8 Affected Public: Businesses. this information collection, FRA will through 1320.12. On August 21, 2019, Form(s): N/A. audit a railroad’s compliance with its FRA published a 60-day notice in the Respondent Universe: 746 railroads. SSP Plan. FRA will use the information Federal Register soliciting comment on Frequency of Submission: On to ensure and enforce compliance with the ICRs for which it is now seeking occasion/monthly. this regulation. OMB approval. See 84 FR 43645. FRA Total Estimated Annual Responses: 4. received no comments in response to Total Estimated Annual Burden: 4 1 Total estimated annual burden includes this notice. hours. recordkeeping.

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Type of Request: Extension with information on the committee at http:// American Short Line and Regional change (revised estimates) of a currently rsac.fra.dot.gov/. Railroad Association (ASLRRA), on approved collection. FOR FURTHER INFORMATION CONTACT: behalf of its members, petitioned the Affected Public: Businesses Kenton Kilgore, RSAC Designated Federal Railroad Administration (FRA) (railroads). Federal Officer/RSAC Coordinator, FRA for a waiver of compliance from certain Form(s): N/A. Office of Railroad Safety, (202) 493– provisions of the Federal hours of Respondent Universe: 33 railroads. 6286; or Larry Woolverton, Executive service laws contained at 49 U.S.C. Frequency of Submission: On Officer, FRA Office of Railroad Safety, 21103(a)(4)(A), which, in part, require a occasion/monthly. (202) 493–6212. train employee to receive 48 hours off Total Estimated Annual Responses: SUPPLEMENTARY INFORMATION: Pursuant duty after initiating an on-duty period 738. for six consecutive days. FRA assigned Total Estimated Annual Burden: to Section 10(a)(2) of the Federal Advisory Committee Act (Pub. L. 92– the petition Docket Number FRA–2019– 2,084 hours. 0080. Total Estimated Annual Burden Hour 463), FRA is giving notice of a meeting of the RSAC. The RSAC is composed of Specifically, ASLRRA seeks a Dollar Cost Equivalent: $169,396. comprehensive waiver of relief from (1) 40 voting representatives from 29 Under 44 U.S.C. 3507(a) and 5 CFR the statutory rest requirements member organizations, representing 1320.5(b) and 1320.8(b)(3)(vi), FRA contained in 49 U.S.C. 21103(a)(4)(A); various rail industry perspectives. The informs all interested parties that it may and (2) approval of a pilot project to diversity of the Committee ensures the not conduct or sponsor, and a demonstrate the safety of adopting requisite range of views and expertise respondent is not required to respond fatigue mitigation plans on Class II and necessary to discharge its to, a collection of information unless it Class III railroads in lieu of strict displays a currently valid OMB control responsibilities. Public Participation: The meeting is compliance with the requirements of number. these statutory provisions. open to the public on a first-come, first- ASLRRA’s existing waiver of 49 Authority: 44 U.S.C. 3501–3520. served basis, and is accessible to U.S.C. 21103(a)(4)(A), granted under the Brett A. Jortland, individuals with disabilities. Any terms and conditions contained in Acting Chief Counsel. member of the public may present a FRA’s initial March 5, 2010 decision written statement to the committee at [FR Doc. 2019–23544 Filed 10–28–19; 8:45 am] letter, and extended by FRA’s decision any time. The U.S. Department of BILLING CODE 4910–06–P letter dated February 27, 2012, permits Transportation and the Federal Railroad participating railroads to allow train Administration are committed to employees to work six consecutive days DEPARTMENT OF TRANSPORTATION providing equal access to this meeting followed by 24 hours of rest before for all participants. If you need returning to work. See Docket Number Federal Railroad Administration alternative formats or services because FRA–2009–0078. One condition of the of a disability, please contact either of [Docket No. FRA–2000–7257, Notice No. 89] waiver excludes work occurring the individuals listed in the FOR between the hours of midnight and six Railroad Safety Advisory Committee; FURTHER INFORMATION CONTACT section a.m. ASLRRA requests to expand the Notice of Meeting no later than November 16, 2019. waiver to include work between the Agenda Summary: The RSAC meeting hours of midnight and six a.m. for those AGENCY: Federal Railroad topics will include opening remarks railroads identified in the petition. It Administration (FRA), Department of from the FRA Administrator, as well as also seeks approval of a pilot project to Transportation (DOT). an update on the railroad industry’s validate preliminary data results ACTION: Notice of public meeting. implementation of positive train control suggesting that employing fatigue (PTC). FRA will present to the mitigating techniques would eliminate SUMMARY: FRA announces the fifty- Committee reports from the Working any adverse consequences from ninth meeting of the Railroad Safety Groups for: Tourist and Historic extending ASLRRA’s existing waiver to Advisory Committee (RSAC), a Federal Railroads; Track Standards; Passenger those hours. ASLRRA states that Advisory Committee that develops Safety; Part 225 Accident Reporting; employee participation in the waiver railroad safety regulations through a Train Dispatcher Certification; and will be voluntary and all employees consensus process. Signal Employees Certification. This covered by the waiver will be provided DATES: The RSAC meeting is scheduled agenda is subject to change. information about the waiver and pilot. for Tuesday, November 26, 2019. The Issued in Washington, DC. A copy of the petition, as well as any meeting will commence at 9:30 a.m., Ronald L. Batory, written communications concerning the and will adjourn by 4:30 p.m. Requests Administrator. petition, is available for review online at to submit written materials to be www.regulations.gov and in person at [FR Doc. 2019–23538 Filed 10–28–19; 8:45 am] reviewed during the meeting must be the U.S. Department of Transportation’s received no later than November 16, BILLING CODE 4910–06–P Docket Operations Facility, 1200 New 2019. Requests for accommodations Jersey Ave. SE, W12–140, Washington, because of a disability must be received DEPARTMENT OF TRANSPORTATION DC 20590. The Docket Operations by November 16, 2019. Facility is open from 9 a.m. to 5 p.m., ADDRESSES: The RSAC meeting will be Federal Railroad Administration Monday through Friday, except Federal held at the National Association of Holidays. Home Builders, located at 1201 15th [Docket Number FRA–2019–0080] Interested parties are invited to Street NW, Washington, DC 20005. A Petition for Waiver of Compliance participate in these proceedings by final agenda will be posted on the RSAC submitting written views, data, or internet website at https:// Under part 211 of title 49 Code of comments. FRA does not anticipate rsac.fra.dot.gov/ at least one week in Federal Regulations (CFR), this scheduling a public hearing in advance of the meeting. Please see the document provides the public notice connection with these proceedings since RSAC website for additional that on September 18, 2019, the the facts do not appear to warrant a

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hearing. If any interested parties desire described in the system of records SE, Washington, DC 20590; 202–366– an opportunity for oral comment and a notice (DOT/ALL–14 FDMS), which can 0091. public hearing, they should notify FRA, be reviewed at https:// SUPPLEMENTARY INFORMATION: Pursuant in writing, before the end of the www.transportation.gov/privacy. See to Section 10(a)(2) of the Federal comment period and specify the basis also https://www.regulations.gov/ Advisory Committee Act (Pub. L. 92– for their request. privacyNotice for the privacy notice of 463; 5 U.S.C. App. 2), notice is hereby All communications concerning these regulations.gov. given of a meeting of the Advisory proceedings should identify the Issued in Washington, DC. Board of the Saint Lawrence Seaway appropriate docket number and may be John Karl Alexy, Development Corporation (SLSDC). The submitted by any of the following Associate Administrator for Railroad Safety, agenda for this meeting will be as methods: Chief Safety Officer. • Website: http://www.regulations follows: [FR Doc. 2019–23590 Filed 10–28–19; 8:45 am] .gov. Follow the online instructions for December 2, 2019 From 2:00 p.m.–3:30 submitting comments. BILLING CODE 4910–06–P p.m. EST • Fax: 202–493–2251. • Mail: Docket Operations Facility, 1. Opening Remarks DEPARTMENT OF TRANSPORTATION U.S. Department of Transportation, 1200 2. Consideration of Minutes of Past Meeting New Jersey Avenue SE, W12–140, Saint Lawrence Seaway Development Washington, DC 20590. Corporation Advisory Board—Notice 3. Quarterly Report • Hand Delivery: 1200 New Jersey of Public Meetings 4. Old and New Business Avenue SE, Room W12–140, 5. Closing Discussion Washington, DC 20590, between 9 a.m. AGENCY: Saint Lawrence Seaway 6. Adjournment and 5 p.m., Monday through Friday, Development Corporation (SLSDC), except Federal Holidays. DOT. Public Participation Communications received by ACTION: Notice of public meeting. Attendance at the meeting is open to December 13, 2019 will be considered the interested public. With the approval by FRA before final action is taken. SUMMARY: This notice announces the public meeting via conference call of the of the Administrator, members of the Comments received after that date will public may present oral statements at be considered if practicable. Saint Lawrence Seaway Development Corporation Advisory Board. the meeting. Persons wishing further Anyone can search the electronic information should contact the person DATES: The public meeting will be held form of any written communications listed under the heading, FOR FURTHER on (all times Eastern): and comments received into any of our INFORMATION CONTACT, not later than • Monday, December 2, 2019 from dockets by the name of the individual Friday, November 25, 2019. Any 2:00 p.m.–3:30 p.m. EST. submitting the comment (or signing the member of the public may present a ADDRESSES: document, if submitted on behalf of an The meeting will be held written statement to the Advisory Board association, business, labor union, etc.). via conference call at the SLSDC’s at any time. Under 5 U.S.C. 553(c), DOT solicits Operations location, 180 Andrews comments from the public to better Street, Massena, New York 13662. Carrie Lavigne, inform its processes. DOT posts these FOR FURTHER INFORMATION CONTACT: (Approving Official), Chief Counsel, Saint comments, without edit, including any Wayne Williams, Chief of Staff, Saint Lawrence Seaway Development Corporation. personal information the commenter Lawrence Seaway Development [FR Doc. 2019–23537 Filed 10–28–19; 8:45 am] provides, to www.regulations.gov, as Corporation, 1200 New Jersey Avenue BILLING CODE 4910–61–P

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Part II

Bureau of Consumer Financial Protection

Home Mortgage Disclosure (Regulation C); Final Rule

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BUREAU OF CONSUMER FINANCIAL Protection Act (EGRRCPA),2 Congress the appropriate level for the permanent PROTECTION added partial exemptions from HMDA’s open-end coverage threshold for data requirements that exempt certain collected beginning January 1, 2022, 12 CFR Part 1003 insured depository institutions and after reviewing additional comments insured credit unions from reporting relating to that aspect of the proposal. [Docket No. CFPB–2019–0021] some but not all HMDA data for certain Such an extension will ensure that any RIN 3170–AA76 transactions. The final rule incorporates institutions that are covered under the into Regulation C and implements new permanent open-end coverage Home Mortgage Disclosure further the EGRRCPA partial threshold have until January 1, 2022 to (Regulation C) exemptions. It also extends for two comply. years a temporary adjustment to AGENCY: Bureau of Consumer Financial Regulation C’s institutional and B. Implementation of Partial Protection. transactional coverage threshold for Exemptions ACTION: Final rule; official open-end lines of credit.3 The final rule also implements further interpretation. the partial exemptions from HMDA’s A. Extension of Temporary Adjustment requirements that the EGRRCPA SUMMARY: The Bureau of Consumer to Open-End Coverage Threshold recently added to HMDA. In August Financial Protection (Bureau) is In an October 2015 final rule (2015 2018, the Bureau issued an interpretive amending Regulation C to adjust the HMDA Rule), the Bureau established and procedural rule to implement and threshold for reporting data about open- institutional and transactional coverage clarify the EGRRCPA amendments to end lines of credit by extending to thresholds in Regulation C, and these HMDA (2018 HMDA Rule).6 The 2018 January 1, 2022, the current temporary thresholds affect whether financial HMDA Rule clarifies that insured threshold of 500 open-end lines of institutions need to report any depository institutions and insured credit. The Bureau is also incorporating information under HMDA for credit unions covered by a partial into Regulation C the interpretations transactions.4 The 2015 HMDA Rule set exemption have the option of reporting and procedures from the interpretive the closed-end threshold at 25 loans in exempt data fields as long as they report and procedural rule that the Bureau each of the two preceding calendar all data fields within any exempt data issued on August 31, 2018, and years, and the open-end threshold at point for which they report data; implementing further the Economic 100 open-end lines of credit in each of clarifies that only loans and lines of Growth, Regulatory Relief, and the two preceding calendar years. In credit that are otherwise HMDA Consumer Protection Act. 2017, before those thresholds took reportable count toward the thresholds DATES: This final rule is effective on effect, the Bureau temporarily increased for the partial exemptions; clarifies January 1, 2020, except for the the open-end threshold to 500 open-end which of the data points in Regulation amendments to § 1003.2 in amendatory lines of credit for two years (calendar C are covered by the partial exemptions; instruction 6, the amendments to years 2018 and 2019). The final rule designates a non-universal loan § 1003.3 in amendatory instruction 7, extends to January 1, 2022, the current identifier for partially exempt and the amendments to supplement I to temporary threshold of 500 open-end transactions for institutions that choose part 1003 in amendatory instruction 8, lines of credit for open-end institutional not to report a universal loan identifier; which are effective on January 1, 2022. and transactional coverage. The Bureau and clarifies the exception to the partial FOR FURTHER INFORMATION CONTACT: intends to address in a separate final exemptions for insured depository Jaydee DiGiovanni, Counsel; or Amanda rule the changes it proposed to the institutions with less than satisfactory Quester or Alexandra Reimelt, Senior permanent coverage thresholds for examination histories under the Counsels, Office of Regulations, at 202– open-end lines of credit and closed-end Community Reinvestment Act of 1977 435–7700 or https:// mortgage loans.5 In the interim, (CRA). The final rule incorporates into reginquiries.consumerfinance.gov/. If extending the current temporary Regulation C these interpretations and you require this document in an increase in the open-end coverage procedures, with minor adjustments, by alternative electronic format, please threshold for an additional two years adding new § 1003.3(d) relating to the contact [email protected]. will allow the Bureau to consider fully partial exemptions and making various SUPPLEMENTARY INFORMATION: amendments to the data compilation 2 Public Law 115–174, 132 Stat. 1296 (2018). requirements in § 1003.4. The final rule I. Summary of the Final Rule 3 When amending the Bureau’s commentary, the further implements the EGRRCPA by Office of the Federal Register requires reprinting of Regulation C, 12 CFR part 1003, certain subsections being amended in their entirety addressing certain additional implements the Home Mortgage rather than providing more targeted amendatory interpretive issues relating to the partial Disclosure Act (HMDA), 12 U.S.C. 2801 instructions and commentary. The subsections of exemptions that the 2018 HMDA Rule regulatory text and commentary included in this did not specifically address, such as through 2810, and includes institutional document show the complete language of those and transactional coverage thresholds subsections. In addition, the Bureau is releasing an how to determine whether a partial that determine whether financial unofficial, informal redline to assist industry and exemption applies to a transaction after institutions are required to collect, other stakeholders in reviewing the changes that it a merger or acquisition. is finalizing to the regulatory text and commentary record, and report any HMDA data on of Regulation C. This redline can be found on the II. Background closed-end mortgage loans or open-end Bureau’s regulatory implementation page for the lines of credit (collectively, coverage HMDA Rule at https://www.consumerfinance.gov/ A. HMDA and Regulation C thresholds).1 In the Economic Growth, policy-compliance/guidance/hmda- implementation/. If any conflicts exist between the HMDA requires certain depository Regulatory Relief, and Consumer redline and this final rule, this final rule is the institutions and for-profit nondepository controlling document. 1 HMDA requires financial institutions to collect, 4 Home Mortgage Disclosure (Regulation C), 80 FR 6 Partial Exemptions from the Requirements of the record, and report data. To simplify review of this 66128 (Oct. 28, 2015). Home Mortgage Disclosure Act Under the Economic document, the Bureau generally refers herein to the 5 See Home Mortgage Disclosure (Regulation C); Growth, Regulatory Relief, and Consumer obligation to report data instead of listing all of Reopening of Comment Period, 84 FR 37804 (Aug. Protection Act (Regulation C), 83 FR 45325 (Sept. these obligations in each instance. 2, 2019). 7, 2018).

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institutions to report data about applicants and mortgagors.10 New institution’’ to include only those originations and purchases of mortgage HMDA section 304(b)(6) in addition institutions that either originated at loans, as well as mortgage loan authorizes the Bureau to require, ‘‘as [it] least 25 closed-end mortgage loans in applications that do not result in may determine to be appropriate,’’ a each of the two preceding calendar originations (for example, applications unique identifier that identifies the loan years or originated at least 100 open-end that are denied or withdrawn). The originator, a universal loan identifier lines of credit in each of the two purposes of HMDA are to provide the (ULI), and the parcel number that preceding calendar years.18 The 2015 public with loan data that can be used: corresponds to the real property pledged HMDA Rule separately established (i) To help determine whether financial as collateral for the mortgage loan.11 transactional coverage thresholds that institutions are serving the housing New HMDA section 304(b)(5)(D) and are part of the test for determining needs of their communities; (ii) to assist (6)(J) further provides the Bureau with which loans are excluded from coverage public officials in distributing public- the authority to mandate reporting of and were designed to work in tandem sector investment so as to attract private ‘‘such other information as the Bureau with the institutional coverage 12 investment to areas where it is needed; may require.’’ thresholds.19 and (iii) to assist in identifying possible C. 2015 HMDA Rule D. 2017 HMDA Rule and December 2017 discriminatory lending patterns and In October 2015, the Bureau issued Statement 7 enforcing antidiscrimination statutes. the 2015 HMDA Rule implementing the In April 2017, the Bureau issued a Prior to enactment of the Dodd-Frank Dodd-Frank Act amendments to Wall Street Reform and Consumer HMDA.13 Most of the 2015 HMDA Rule notice of proposed rulemaking to Protection Act (Dodd-Frank Act), took effect on January 1, 2018.14 The address certain technical errors in the Regulation C required reporting of 22 2015 HMDA Rule implemented the new 2015 HMDA Rule, ease the burden of data points and allowed for optional data points specified in the Dodd-Frank reporting certain data requirements, and reporting of reasons an institution 15 clarify key terms to facilitate Act, added a number of additional 20 denied an application.8 data points pursuant to the Bureau’s compliance with Regulation C. In July discretionary authority under HMDA 2017, the Bureau issued a notice of B. Dodd-Frank Act section 304(b)(5) and (6),16 and made proposed rulemaking (July 2017 HMDA revisions to certain pre-existing data Proposal) to increase temporarily the In 2010, Congress enacted the Dodd- 2015 HMDA Rule’s open-end coverage Frank Act, which amended HMDA and points to clarify their requirements, provide greater specificity in reporting, threshold of 100 for both institutional transferred HMDA rulemaking authority and transactional coverage, so that and other functions from the Board of and align certain data points more closely with industry data standards,17 institutions originating fewer than 500 Governors of the Federal Reserve open-end lines of credit in either of the 9 among other changes. System (Board) to the Bureau. Among two preceding calendar years would not other changes, the Dodd-Frank Act The 2015 HMDA Rule requires some financial institutions to report data on have to commence collecting or expanded the scope of information certain dwelling-secured, open-end reporting data on their open-end lines of relating to mortgage applications and 21 lines of credit, including home-equity credit until January 1, 2020. In August loans that institutions must compile, lines of credit. Prior to the 2015 HMDA 2017, the Bureau issued the 2017 maintain, and report under HMDA. Rule, Regulation C allowed, but did not HMDA Rule, which, inter alia, Specifically, the Dodd-Frank Act require, reporting of home-equity lines temporarily increased the open-end amended HMDA section 304(b)(4) by of credit. threshold to 500 open-end lines of adding one new data point, the age of The 2015 HMDA Rule also credit for calendar years 2018 and loan applicants and mortgagors. The established institutional coverage 2019.22 In doing so, the Bureau Dodd-Frank Act also added new HMDA thresholds based on loan volume that indicated that the two-year period section 304(b)(5) and (6), which requires limit the definition of ‘‘financial would allow time for the Bureau to the following additional new data decide, through an additional points: Information relating to the total 10 Dodd-Frank Act section 1094(3), amending rulemaking, whether any permanent points and fees payable at origination HMDA section 304(b), 12 U.S.C. 2803(b). adjustments to the open-end threshold (total loan costs or total points and fees); 11 Id. are needed.23 12 the difference between the annual Id. 13 80 FR 66128 (Oct. 28, 2015). 18 Id. at 66148–50, 66309 (codified at 12 CFR percentage rate (APR) associated with 14 Id. at 66128, 66256–58. 1003.2(g)(1)(v)). The 2015 HMDA Rule excludes the loan and a benchmark rate or rates 15 The following 12 data points in 12 CFR certain transactions from the definition of covered for all loans (rate spread); the term of 1003.4(a) implement specific provisions in HMDA loans, and those excluded transactions do not count any prepayment penalty; the value of section 304(b)(5)(A) through (C) or (b)(6)(A) through towards the threshold. Id. (I): ULI (1003.4(a)(1)(i)); property address 19 Id. at 66173, 66310, 66322 (codified at 12 CFR real property to be pledged as collateral; (1003.4(a)(9)(i)); rate spread (1003.4(a)(12)); credit 1003.3(c)(11) and (12)). the term of the loan and of any score (1003.4(a)(15)); total loan costs or total points 20 introductory interest rate on the loan; and fees (1003.4(a)(17)); prepayment penalty term Technical Corrections and Clarifying Amendments to the Home Mortgage Disclosure the presence of contract terms allowing (1003.4(a)(22)); loan term (1003.4(a)(25)); introductory rate period (1003.4(a)(26)); non- (Regulation C) October 2015 Final Rule, 82 FR non-amortizing payments; the channel amortizing features (1003.4(a)(27)); property value 19142 (Apr. 25, 2017). through which the application was (1003.4(a)(28)); application channel (1003.4(a)(33)); 21 Home Mortgage Disclosure (Regulation C) made; and the credit scores of and mortgage loan originator identifier Temporary Increase in Institutional and (1003.4(a)(34)). Id. Transactional Coverage Thresholds for Open-End 16 For example, the 2015 HMDA Rule added a Lines of Credit, 82 FR 33455 (July 20, 2017). 7 12 CFR 1003.1. requirement to report debt-to-income ratio in 22 Home Mortgage Disclosure (Regulation C), 82 8 As used in this final rule, the term ‘‘data point’’ § 1003.4(a)(23). Id. at 66218–20. FR 43088 (Sept. 13, 2017). refers to items of information that entities are 17 For example, the 2015 HMDA Rule replaced 23 Id. at 43095. The 2017 HMDA Rule also, among required to compile and report, generally listed in property type with number of total units and other things, replaced ‘‘each’’ with ‘‘either’’ in separate paragraphs in Regulation C. Some data construction method in § 1003.4(a)(5) and (31). Id. § 1003.3(c)(11) and (12) to correct a drafting error points are reported using multiple data fields. at 66180–81, 66227. It also requires disaggregation and to ensure that the exclusion provided in that 9 Public Law 111–203, 124 Stat. 1376, 1980, of ethnicity and race information in section mirrors the loan-volume threshold for 2035–38, 2097–101 (2010). § 1003.4(a)(10)(i). Id. at 66187–94. Continued

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Recognizing the significant systems E. EGRRCPA and 2018 HMDA Rule credit unions covered by a partial and operations challenges needed to On May 24, 2018, the President exemption have the option of reporting adjust to the revised regulation, the signed into law the EGRRCPA.27 Section exempt data fields as long as they report Bureau issued a statement in December 104(a) of the EGRRCPA amends HMDA all data fields within any exempt data 2017 (December 2017 Statement) section 304(i) by adding partial point for which they report data; indicating that, for HMDA data exemptions from HMDA’s requirements clarifies that only loans and lines of collected in 2018 and reported in 2019, for certain insured depository credit that are otherwise HMDA the Bureau did not intend to require institutions and insured credit unions.28 reportable count toward the thresholds data resubmission unless data errors are New HMDA section 304(i)(1) provides for the partial exemptions; clarifies which of the data points in Regulation material.24 The December 2017 that the requirements of HMDA section C are covered by the partial exemptions; Statement also explained that the 304(b)(5) and (6) shall not apply with designates a non-universal loan Bureau did not intend to assess respect to closed-end mortgage loans of an insured depository institution or identifier for partially exempt penalties with respect to errors in data transactions for institutions that choose collected in 2018 and reported in insured credit union if it originated fewer than 500 closed-end mortgage not to report a ULI; and clarifies the 2019.25 As explained in the statement, exception to the partial exemptions for any supervisory examinations of 2018 loans in each of the two preceding calendar years. New HMDA section insured depository institutions with less HMDA data would be diagnostic to help 304(i)(2) provides that the requirements than satisfactory CRA examination institutions identify compliance of HMDA section 304(b)(5) and (6) shall histories. The 2018 HMDA Rule also weaknesses and would credit good-faith not apply with respect to open-end lines explains that, because the EGRRCPA compliance efforts. In its December of credit of an insured depository does not provide a specific effective 2017 Statement, the Bureau indicated institution or insured credit union if it date for section 104(a) and because there that it intended to engage in a originated fewer than 500 open-end are no other statutory indications that rulemaking to reconsider various lines of credit in each of the two section 104(a) becomes effective upon aspects of the 2015 HMDA Rule, such as preceding calendar years. regulatory action or some other event or the institutional and transactional Notwithstanding the new partial condition, the best interpretation is that coverage tests and the rule’s exemptions, new HMDA section section 104(a) took effect when the discretionary data points. The Board, 304(i)(3) provides that an insured EGRRCPA became law on May 24, 2018. the Federal Deposit Insurance depository institution must comply with In the 2018 HMDA Rule, the Bureau Corporation (FDIC), the National Credit HMDA section 304(b)(5) and (6) if it has stated that it anticipated that, at a later Union Administration (NCUA), and the received a rating of ‘‘needs to improve date, it would initiate a notice-and- comment rulemaking to incorporate the Office of the Comptroller of the record of meeting community credit interpretations and procedures into Currency (OCC) released similar needs’’ during each of its two most Regulation C and further implement the statements relating to their supervisory recent examinations or a rating of EGRRCPA. As discussed in part III examinations.26 ‘‘substantial noncompliance in meeting community credit needs’’ on its most below, in May 2019 the Bureau issued a notice of proposed rulemaking (May financial institutions in § 1003.2(g). Id. at 43100, recent examination under section 29 2019 Proposal) that sought public 43102. 807(b)(2) of the CRA. 24 Bureau of Consumer Fin. Prot., ‘‘Statement On August 31, 2018, the Bureau comment on such an incorporation and 31 with Respect to HMDA Implementation’’ (Dec. 21, issued an interpretive and procedural further implementation. After 2017), https://files.consumerfinance.gov/f/ rule (2018 HMDA Rule) to implement reviewing the comments received, the documents/cfpb_statement-with-respect-to-hmda- Bureau now issues this final rule that _ and clarify section 104(a) of the implementation 122017.pdf. incorporates the interpretations and 25 The statement also indicated that collection EGRRCPA and effectuate the purposes and submission of the 2018 HMDA data will of the EGRRCPA and HMDA.30 The procedures into Regulation C and provide financial institutions an opportunity to 2018 HMDA Rule clarifies that insured further implements the EGRRCPA. identify any gaps in their implementation of depository institutions and insured amended Regulation C and make improvements in F. HMDA Coverage Under Current their HMDA compliance management systems for Regulation C future years. Id. 27 Public Law 115–174, 132 Stat. 1296 (2018). 28 The Bureau’s estimates of HMDA 26 As part of its spring 2018 Call for Evidence For purposes of HMDA section 104, the series of Requests for Information, the Bureau EGRRCPA provides that the term ‘‘insured credit coverage and the sources used in issued a Request for Information Regarding the union’’ has the meaning given the term in section deriving those estimates are explained Bureau’s Adopted Regulations and New 101 of the Federal Credit Union Act, 12 U.S.C. in detail in the Bureau’s analysis under 1752, and the term ‘‘insured depository institution’’ Rulemaking Authorities, 83 FR 12286 (Mar. 21, Dodd-Frank Act section 1022(b) in part 2018) (RFI on Adopted Regulations) and a Request has the meaning given the term in section 3 of the 32 for Information Regarding the Bureau’s Inherited Federal Deposit Insurance Act, 12 U.S.C. 1813. VII below. The Bureau estimated in Regulations and Inherited Rulemaking Authorities, 29 12 U.S.C. 2906(b)(2). the May 2019 Proposal that currently 83 FR 12881 (Mar. 26, 2018). The RFI on Adopted 30 83 FR 45325 (Sept. 7, 2018). Prior to issuing the there are about 4,960 financial Regulations did not request feedback on the 2015 2018 HMDA Rule, the Bureau, the Board, the FDIC, institutions required to report their HMDA Rule nor that rule’s subsequent amendments the NCUA, and the OCC released statements on July because the Bureau had previously announced in 5, 2018, reiterating or referring to their December the December 2017 Statement that it intended to 2017 compliance statements and providing 31 Home Mortgage Disclosure (Regulation C), 84 engage in a rulemaking process to reconsider the information about formatting and submission of FR 20972 (May 13, 2019). 2015 HMDA Rule. However, the Bureau received a 2018 loan/application registers. See, e.g., Bureau of 32 See infra part VII.D.1. As discussed further in few comments relating to HMDA in response to the Consumer Fin. Prot., ‘‘Statement on the part VII below, the Bureau’s analyses in the May RFI on Adopted Regulations. The Bureau Implementation of the Economic Growth, 2019 Proposal were based on HMDA data collected considered these comments as well as other input Regulatory Relief, and Consumer Protection Act in 2016 and 2017 and other sources. In part VII of it has received from stakeholders through its efforts Amendments to the Home Mortgage Disclosure this final rule, the Bureau has supplemented the to monitor and support industry implementation of Act’’ (July 25, 2018), https:// analyses from the May 2019 Proposal relating to the the 2015 HMDA Rule and the 2017 HMDA Rule in www.consumerfinance.gov/about-us/newsroom/ provisions to implement the EGRRCPA and the developing the May 2019 Proposal and the Advance bureau-consumer-financial-protection-issues- provisions to extend the temporary open-end Notice of Proposed Rulemaking that the Bureau statement-implementation-economic-growth- coverage threshold with the 2018 HMDA data that released simultaneously with the May 2019 regulatory-relief-and-consumer-protection-act- were released to the public on August 30, 2019. See Proposal. amendments-home-mortgage-disclosure-act/. infra part VII.E.2 & VII.E.3.

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closed-end mortgage loans and comment.33 The May 2019 Proposal was that data (collectively, the 2018 HMDA applications under HMDA. The Bureau published in the Federal Register on Data) would not be available until after estimated that approximately 4,263 of May 13, 2019. the close of the comment period for the these current reporters are depository In the May 2019 Proposal, the Bureau May 2019 Proposal. Stakeholders asked institutions and approximately 697 are proposed two alternatives to amend to submit comments on the May 2019 nondepository institutions. The Bureau Regulation C to increase the current 25- Proposal that reflect consideration of the estimated that together, these financial loan coverage threshold for reporting 2018 HMDA Data. To allow for the institutions originated about 7.0 million data about closed-end mortgage loans so submission of such comments, the closed-end mortgage loans in calendar that institutions originating fewer than Bureau reopened the comment period year 2017. The Bureau estimated that either 50 closed-end mortgage loans, or on certain aspects of the proposal until among those 4,960 financial institutions alternatively 100 closed-end mortgage October 15, 2019.36 Specifically, the that are currently required to report loans, in either of the two preceding Bureau reopened the comment period closed-end mortgage loans under calendar years would not have to report with respect to: (1) The Bureau’s HMDA, about 3,300 insured depository such data. The May 2019 Proposal proposed amendments to the permanent institutions and insured credit unions proposed an effective date of January 1, coverage threshold for closed-end are partially exempt for closed-end 2020 for the amendment to the closed- mortgage loans, (2) the Bureau’s mortgage loans under the EGRRCPA and end coverage threshold. The May 2019 proposed amendments to the permanent the 2018 HMDA Rule, and thus are not Proposal also proposed to adjust the coverage threshold for open-end lines of required to report a subset of the data coverage threshold for reporting data credit, and (3) the appropriate effective points currently required by Regulation about open-end lines of credit by (a) date for any amendment to the closed- C for these transactions. extending to January 1, 2022 the current end coverage threshold.37 After As explained in more detail in part temporary coverage threshold of 500 reviewing the comments it receives by VII.E.3 and table 3 below, under the open-end lines of credit, and (b) setting the October 15, 2019 deadline, the temporary 500 open-end line of credit the permanent coverage threshold at 200 Bureau anticipates that it will issue a coverage threshold set in the 2017 open-end lines of credit upon the separate final rule in 2020 addressing HMDA Rule, the Bureau estimated in expiration of the proposed extension of the permanent thresholds for closed-end the May 2019 Proposal that currently the temporary coverage threshold. In the mortgage loans and open-end lines of there are about 333 financial institutions May 2019 Proposal, the Bureau also credit. The Bureau therefore generally required to report about 1.23 million proposed to incorporate into Regulation does not discuss the proposed open-end lines of credit under HMDA. C the interpretations and procedures amendments to those permanent Of these institutions, the Bureau from the interpretive and procedural threshold provisions for the remainder estimated that approximately 318 are rule that the Bureau issued on August of this document. depository institutions and 31, 2018 to implement and clarify The Bureau concluded that further approximately 15 are nondepository section 104(a) of the EGRRCPA,34 and comment was not necessary with institutions. None of these 333 proposed to make other changes to respect to the other aspects of the May institutions are partially exempt. effectuate section 104(a). 2019 Proposal.38 The Bureau therefore In comparison, if the open-end The comment period for the May 2019 did not reopen the comment period coverage threshold were to adjust to 100 Proposal closed on June 12, 2019.35 The with respect to the May 2019 Proposal’s on January 1, 2020 pursuant to the 2017 Bureau received over 300 comments proposed two-year extension of the HMDA Rule, the Bureau estimated in from lenders, industry trade temporary coverage threshold for open- the May 2019 Proposal that the number associations, consumer groups, end lines of credit or the provisions in of reporters would be about 1,014, who consumers, members of Congress, and the May 2019 Proposal that would in total originate about 1.41 million others. As discussed in more detail incorporate the EGRRCPA partial open-end lines of credit. The Bureau below, the Bureau has considered these exemptions into Regulation C and estimated that approximately 972 of comments in adopting this final rule. further effectuate EGRRCPA section these open-end reporters would be Among the comments received were a 104(a). This final rule addresses these depository institutions and number of letters expressing concern aspects of the May 2019 Proposal. approximately 42 would be that the national loan level dataset for nondepository institutions. The Bureau 2018 and the Bureau’s annual overview IV. Legal Authority estimated that, among the 1,014 of residential mortgage lending based on The Bureau is issuing this final rule financial institutions that would be pursuant to its authority under the required to report open-end lines of 33 84 FR 20972 (May 13, 2019). The Bureau also Dodd-Frank Act and HMDA. Section credit under a threshold of 100, about issued concurrently with the May 2019 Proposal an 1061 of the Dodd-Frank Act transferred Advance Notice of Proposed Rulemaking to solicit 618 insured depository institutions and comment, data, and information from the public to the Bureau the ‘‘consumer financial insured credit unions are partially about the data points that the 2015 HMDA Rule protection functions’’ previously vested exempt for open-end lines of credit added to Regulation C or revised to require in certain other Federal agencies, under the EGRRCPA and the 2018 additional information and Regulation C’s coverage including the Board.39 The term of certain business- or commercial-purpose ‘‘consumer financial protection HMDA Rule, and thus would not be transactions. Home Mortgage Disclosure (Regulation required to report a subset of the data C) Data Points and Coverage, 89 FR 20049 (May 8, function’’ is defined to include ‘‘all points currently required by Regulation 2019); see also Home Mortgage Disclosure authority to prescribe rules or issue C for these transactions. (Regulation C), 80 FR 66128 (Oct. 28, 2015). The orders or guidelines pursuant to any Advance Notice of Proposed Rulemaking was Federal consumer financial law, III. Summary of the Rulemaking published in the Federal Register on May 8, 2019. 34 including performing appropriate Process Partial Exemptions from the Requirements of the Home Mortgage Disclosure Act Under the On May 2, 2019, the Bureau issued Economic Growth, Regulatory Relief, and Consumer 36 84 FR 37804 (Aug. 2, 2019). the May 2019 Proposal relating to Protection Act (Regulation C), 83 FR 45325 (Sept. 37 Id. at 37806. 7, 2018). 38 Regulation C’s coverage thresholds and Id. 35 A separate comment period related to the 39 12 U.S.C. 5581. Section 1094 of the Dodd-Frank the EGRRCPA partial exemptions under Paperwork Reduction Act closed on July 12, 2019. Act also replaced the term ‘‘Board’’ with ‘‘Bureau’’ HMDA and requested public 84 FR 20972 (May 13, 2019). in most places in HMDA. 12 U.S.C. 2803 et seq.

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functions to promulgate and review responsibilities.46 In the May 2019 to evince the intent to exclude from such rules, orders, and guidelines.’’ 40 Proposal, the Bureau proposed to amend coverage institutions that make a Section 1022(b)(1) of the Dodd-Frank §§ 1003.2(g)(1)(v)(B) and (g)(2)(ii)(B) and relatively small number of mortgage Act authorizes the Bureau’s Director to 1003.3(c)(12) and related commentary to loans.49 Pursuant to its authority under prescribe rules ‘‘as may be necessary or extend to January 1, 2022, the current HMDA section 305(a), and for the appropriate to enable the Bureau to temporary open-end coverage threshold reasons discussed below, the Bureau administer and carry out the purposes of 500 open-end lines of credit. For the believes that this final rule’s and objectives of the Federal consumer reasons discussed below, the Bureau is amendments to extend for two years the financial laws, and to prevent evasions finalizing the amendments relating to temporary thresholds for open-end lines thereof.’’ 41 Both HMDA and title X of the two-year extension of the temporary of credit in § 1003.2(g)(1) and (2) are the Dodd-Frank Act are Federal open-end coverage threshold as necessary and proper to effectuate the consumer financial laws.42 Accordingly, proposed. purposes of HMDA and facilitate the Bureau has authority to issue The Bureau also proposed in May compliance with HMDA by reducing regulations to implement HMDA. 2019 to increase the permanent open- burden and establishing a consistent HMDA section 305(a) broadly end coverage threshold to 200 open-end loan-volume test, while still providing authorizes the Bureau to prescribe such lines of credit effective January 1, 2022. significant market coverage. regulations as may be necessary to carry As discussed in part III above, the out HMDA’s purposes.43 These Bureau has reopened the comment 2(g)(1) Depository Financial Institution regulations may include classifications, period relating to the May 2019 2(g)(1)(v) differentiations, or other provisions, and Proposal’s proposed amendments to the 2(g)(1)(v)(B) may provide for such adjustments and permanent thresholds for closed-end exceptions for any class of transactions, mortgage loans and open-end lines of Background on Reporting Data as in the judgment of the Bureau are credit.47 After reviewing the comments Concerning Open-End Lines of Credit necessary and proper to effectuate the received during the reopened comment Under the 2015 HMDA Rule and the purposes of HMDA, and prevent period, the Bureau intends to issue a 2017 HMDA Rule circumvention or evasion thereof, or to final rule addressing the permanent By its terms, the definition of facilitate compliance therewith.44 open-end coverage threshold that would ‘‘mortgage loan’’ in HMDA covers all take effect on January 1, 2022. V. Section-by-Section Analysis loans secured by residential real Legal Authority for Changes to property and home improvement loans Section 1003.2 Definitions 50 § 1003.2(g) whether open- or closed-end. 2(g) Financial Institution However, home-equity lines of credit In the 2015 HMDA Rule, the Bureau were uncommon in the 1970s and early Regulation C requires financial adopted the thresholds for certain 1980s when Regulation C was first institutions to report HMDA data. depository institutions in § 1003.2(g)(1) issued, and the Board’s definition Section 1003.2(g) defines financial pursuant to its authority under section covered only closed-end loans. In 2000, institution for purposes of Regulation C 305(a) of HMDA to provide for such in response to the increasing importance and sets forth Regulation C’s adjustments and exceptions for any of open-end lending in the housing institutional coverage criteria for class of transactions that in the market, the Board proposed to revise depository financial institutions and judgment of the Bureau are necessary Regulation C to require mandatory nondepository financial institutions.45 and proper to effectuate the purposes of reporting of all home-equity lines of In the 2015 HMDA Rule, the Bureau HMDA. Pursuant to section 305(a) of credit, which were optionally adjusted the institutional coverage HMDA, for the reasons given in the reported.51 However, the Board’s 2002 criteria under Regulation C so that 2015 HMDA Rule, the Bureau found final rule left open-end reporting depository institutions and that the exception in § 1003.2(g)(1) is voluntary, as the Board determined that nondepository institutions are required necessary and proper to effectuate the the benefits of mandatory reporting to report HMDA data if they: (1) purposes of and facilitate compliance relative to other then proposed Originated at least 25 closed-end with HMDA. The Bureau found that the amendments (such as collecting mortgage loans or 100 open-end lines of provision, by reducing burden on information about higher-priced loans) credit in each of the two preceding financial institutions and establishing a did not justify the increased burden.52 calendar years, and (2) meet all of the consistent loan-volume test applicable As discussed in the 2015 HMDA Rule, other applicable criteria for reporting. In to all financial institutions, would open-end mortgage lending continued to the 2017 HMDA Rule, the Bureau facilitate compliance with HMDA’s increase in the years following the amended § 1003.2(g) and related 48 requirements. Additionally, as Board’s 2002 final rule, particularly in commentary to increase temporarily discussed in the 2015 HMDA Rule, the areas with high home-price from 100 to 500 the number of open-end Bureau adopted the thresholds for appreciation.53 In light of that originations required to trigger reporting certain nondepository institutions in development and the role that open-end § 1003.2(g)(2) pursuant to its lines of credit may have played in 40 12 U.S.C. 5581(a)(1)(A). interpretation of HMDA sections contributing to the financial crisis,54 the 41 12 U.S.C. 5512(b)(1). 303(3)(B) and 303(5), which require 42 Dodd-Frank Act section 1002(14), 12 U.S.C. persons other than banks, savings 49 5481(14) (defining ‘‘Federal consumer financial Id. at 66153. law’’ to include the ‘‘enumerated consumer laws’’ associations, and credit unions that are 50 HMDA section 303(2), 12 U.S.C. 2802(2). and the provisions of title X of the Dodd-Frank Act); ‘‘engaged for profit in the business of 51 65 FR 78656, 78659–60 (Dec. 15, 2000). In Dodd-Frank Act section 1002(12), 12 U.S.C. mortgage lending’’ to report HMDA 1988, the Board had amended Regulation C to 5481(12) (defining ‘‘enumerated consumer laws’’ to data. The Bureau stated that it interprets permit, but not require, financial institutions to include HMDA). report certain home-equity lines of credit. 53 FR 43 12 U.S.C. 2804(a). these provisions, as the Board also did, 31683, 31685 (Aug. 19, 1988). 44 Id. 52 67 FR 7222, 7225 (Feb. 15, 2002). 45 12 CFR 1003.2(g)(1) (definition of depository 46 82 FR 43088, 43095 (Sept. 13, 2017). 53 80 FR 66128, 66160 (Oct. 28, 2015). financial institution); 1003.2(g)(2) (definition of 47 84 FR 37804 (Aug. 2, 2019). 54 Id. The Bureau stated in the 2015 HMDA Rule nondepository financial institution). 48 80 FR 66128, 66150 (Oct. 28, 2015). that research indicated that some real estate

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Bureau decided in the 2015 HMDA Rule to define three broadly representative believed that the HMDA reporting to require reporting of dwelling-secured, financial institutions according to the process and ongoing operational cost consumer purpose open-end lines of overall level of complexity of their structure for open-end reporting would credit,55 concluding that doing so was a compliance operations: ‘‘tier 1’’ (high- be fundamentally similar to closed-end reasonable interpretation of ‘‘mortgage complexity); ‘‘tier 2’’ (moderate- reporting.65 Thus, using the ongoing loan’’ in HMDA and necessary and complexity); and ‘‘tier 3’’ (low- cost estimates developed for closed-end 60 proper to effectuate the purposes of complexity). The Bureau then sought reporting, the Bureau estimated that for 56 HMDA and prevent evasions thereof. to estimate one-time and ongoing costs a representative tier 1 institution the As noted in the 2015 HMDA Rule, in for a representative institution in each ongoing operational costs would be expanding coverage to include tier.61 $273,000 per year; for a representative mandatory reporting of open-end lines The Bureau recognized in the 2015 of credit, the Bureau recognized that HMDA Rule that the one-time cost of tier 2 institution $43,400 per year; and doing so would impose one-time and reporting open-end lines of credit could for a representative tier 3 institution 66 ongoing operational costs on reporting be substantial because most financial $8,600 per year. These translated into institutions; that the one-time costs of institutions had not reported open-end costs per HMDA record of modifying processes and systems and lines of credit and thus would have to approximately $9, $43, and $57 training staff to begin open-end line of develop completely new systems to respectively.67 The Bureau credit reporting likely would impose begin reporting these data. As a result, acknowledged that, precisely because significant costs on some institutions; there would be one-time costs to create no good source of publicly available and that institutions’ ongoing reporting processes and systems for open-end data exists concerning open-end lines of costs would increase as a function of lines of credit.62 However, for tier 3, credit, it was difficult to predict the their open-end lending volume.57 The low-complexity institutions, the Bureau accuracy of the Bureau’s cost estimates Bureau sought to avoid imposing these believed that the additional one-time but also stated its belief that these costs on small institutions with limited costs of open-end reporting would be estimates were reasonably reliable.68 relatively low. Because these open-end lending, where the benefits of Drawing on all of these estimates, the institutions are less reliant on reporting the data do not justify the Bureau decided in the 2015 HMDA Rule costs of reporting.58 In seeking to draw information technology systems for to establish an open-end coverage such a line, the Bureau acknowledged HMDA reporting and they may process threshold that would require that it was handicapped by the lack of open-end lines of credit on the same institutions that originate 100 or more available data concerning open-end system and in the same business unit as lending.59 This created challenges both closed-end mortgage loans, their one- open-end lines of credit in each of the in estimating the distribution of open- time costs would be derived mostly two preceding calendar years to report end origination volume across financial from new training and procedures data on such lines of credit. The Bureau institutions and in estimating the one- adopted for the overall changes in the estimated that this threshold would time and ongoing costs that institutions final rule, not distinct from costs related avoid imposing the burden of of various sizes would be likely to incur to changes in reporting of closed-end establishing mandatory open-end in reporting data on open-end lending. mortgage loans.63 reporting on approximately 3,000 To estimate the one-time and ongoing The Bureau acknowledged in the 2015 predominantly smaller-sized costs of reporting data under HMDA in HMDA Rule that ongoing costs for open- institutions with low-volume open-end the 2015 HMDA Rule, the Bureau end reporting vary by institutions due to lending 69 and would require reporting identified seven ‘‘dimensions’’ of many factors, such as size, operational by 749 financial institutions, all but 24 compliance operations and used those structure, and product complexity, and of which would also report data on their that this variance exists on a continuum closed-end mortgage lending.70 The that was impossible to capture fully.64 investors used open-end, home-secured lines of Bureau explained in the 2015 HMDA credit to purchase non-owner occupied properties, At the same time, the Bureau stated it which correlated with higher first-mortgage defaults Rule that it believed this threshold appropriately balanced the benefits and and home-price depreciation during the financial 60 Id. at 66261, 66269–70. In the 2015 HMDA Rule crisis. Id. In the years leading up to the crisis, such and the 2017 HMDA Rule, the Bureau assigned burdens of covering institutions based home-equity lines of credit often were made and financial institutions to tiers by adopting cutoffs on their open-end mortgage lending.71 fully drawn more or less simultaneously with first- based on the estimated open-end line of credit However, as discussed in the 2017 lien home purchase loans, essentially creating high volume. Id. at 66285; 82 FR 43088, 43128 (Sept. 13, loan-to-value home purchase transactions that were 2017). Specifically, the Bureau assumed the lenders HMDA Rule, the Bureau lacked robust not visible in the HMDA dataset. Id. that originated fewer than 200 but more than 100 data for the estimates that it used to 55 The Bureau also required reporting of open-end lines of credit were tier 3 (low- applications for, and originations of, dwelling- complexity) open-end reporters; lenders that 65 Id. secured commercial-purpose lines of credit for originate between 200 and 7,000 open-lines of 66 Id. at 66264, 66286. home purchase, home improvement, or refinancing credit were tier 2 (moderate-complexity) open-end 67 Id. purposes. Id. at 66171. reporters; and lenders that originated more than 68 Id. at 66162. 56 Id. at 66157–62. HMDA and Regulation C are 7,000 open-end lines of credit were tier 1 (high- 69 designed to provide citizens and public officials complexity) open-end reporters. 80 FR 66128, Id. The estimate of the number of institutions sufficient information about mortgage lending to 66285 (Oct. 28, 2015); 82 FR 43088, 43128 (Sept. that would be excluded from reporting open-end ensure that financial institutions are serving the 13, 2017). As explained below in part VII.D.1, for lines of credit by the transactional coverage housing needs of their communities, to assist public purposes of this final rule, the Bureau has used a threshold was relative to the number that would officials in distributing public-sector investment so more precise methodology to assign eligible have been covered under the Bureau’s proposal that as to attract private investment to areas where it is financial institutions to tiers 2 and 3 for their open- led to the 2015 HMDA Rule. Under that proposal, needed, and to assist in identifying possible end reporting, which relies on constraints relating a financial institution would have been required to discriminatory lending patterns and enforcing to the estimated numbers of impacted institutions report its open-end lines of credit if it had antidiscrimination statutes. The Bureau believes and loan/application register records for the originated at least 25 closed-end mortgage loans in that collecting information about all dwelling- applicable provision. each of the preceding two years without regard to secured, consumer-purpose open-end lines of credit 61 80 FR 66128, 66264–65 (Oct. 28, 2015); see also how many open-end lines of credit the institution serves these purposes. id. at 66284. originated. See Home Mortgage Disclosure 57 Id. at 66128, 66161. 62 Id. at 66264; see also id. at 66284–85. (Regulation C), 79 FR 51732 (Aug. 29, 2014). 58 Id. at 66149. 63 Id. at 66265; see also id. at 66284. 70 80 FR 66128, 66281 (Oct. 28, 2015). 59 Id. 64 Id. at 66285. 71 Id. at 66162.

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establish the open-end threshold in the Developments After the 2015 HMDA which created partial exemptions from 2015 HMDA Rule.72 Rule and the 2017 HMDA Rule HMDA’s requirements that certain The 2017 HMDA Rule explained that, As the Bureau explained in the May insured depository institutions and 83 between 2013 and 2017, the number of 2019 Proposal, several developments insured credit unions may now use. dwelling-secured open-end lines of since the Bureau issued the 2015 HMDA The partial exemption for open-end credit financial institutions originated Rule have affected the Bureau’s analyses lines of credit under the EGRRCPA 73 had increased by 36 percent. The of the costs and benefits associated with relieves certain insured depository Bureau noted that, to the extent the open-end line of credit coverage institutions and insured credit unions institutions that had been originating threshold. The Bureau is concerned that originated fewer than 500 open-end fewer than 100 open-end lines of credit that, in establishing a 100-loan mortgage loans in each of the two shared in that growth, the number of threshold for open-end lines of credit in preceding calendar years of the institutions at the margin that would be the 2015 HMDA Rule, it may have obligation to report many of the data required to report under an open-end underestimated the number of points generally required by Regulation threshold of 100 lines of credit would institutions that would be covered and C.84 The partial exemptions are also increase.74 Additionally, in the the reporting burden on smaller covered available to the vast majority of the 2017 HMDA Rule, the Bureau explained institutions. Table 3 in the Bureau’s financial institutions that will be that information received by the Bureau analysis under Dodd-Frank Act section excluded by the extension of the since issuing the 2015 HMDA Rule had 1022(b) in part VII.E.3 below provides temporary open-end coverage caused the Bureau to question its the Bureau’s updated coverage estimates threshold.85 The EGRRCPA has thus assumption that certain low-complexity from the May 2019 Proposal for changed the costs and benefits institutions 75 process home-equity lines reporting thresholds of 100 and 500 associated with different possible of credit on the same data platforms as open-end lines of credit.81 As explained coverage thresholds, as discussed in closed-end mortgages, on which the in more detail in part VII.E.3, these more detail below. Bureau based its assumption that the coverage estimates indicate that the total Temporary Open-End Line of Credit one-time costs for these institutions number of institutions exceeding the would be minimal.76 After issuing the Threshold for Institutional Coverage of open-end coverage threshold of 100 Depository Institutions 2015 HMDA Rule, the Bureau had heard open-end lines of credit in 2018 is reports suggesting that one-time costs to approximately 1,014. This estimate is As explained above, the 2015 HMDA begin reporting open-end lines of credit significantly higher than the estimate of Rule established an institutional could be as high as $100,000 for such 749 in the 2015 HMDA Rule that was coverage threshold in § 1003.2(g) for institutions.77 The Bureau likewise had based on 2013 data.82 open-end lines of credit of at least 100 heard reports suggesting that the As explained in more detail in part open-end lines of credit in each of the ongoing costs for these institutions to VII below, the estimates the Bureau two preceding calendar years.86 In the report open-end lines of credit, which used in the 2015 HMDA Rule may 2017 HMDA Rule, the Bureau amended the Bureau estimated would be under understate the burden that open-end § 1003.2(g)(1)(v)(B) and comments $10,000 per year and add under $60 per reporting would impose on smaller 2(g)–3 and –5, effective January 1, 2018, line of credit, could be at least three institutions if they were required to to increase temporarily the open-end times higher than the Bureau had begin reporting on January 1, 2020. For threshold from 100 to 500. In addition, estimated.78 example, in developing the one-time effective January 1, 2020, these Based on this information regarding cost estimates for open-end lines of amendments restore a permanent one-time and ongoing costs and new credit in the 2015 HMDA Rule, the threshold of 100.87 In the May 2019 data indicating that more institutions Bureau had envisioned that there would Proposal, the Bureau proposed to extend would have reporting responsibilities be cost sharing at the corporate level under the 100-loan open-end threshold between the line of business that 83 Public Law 115–174, 132 Stat. 1296 (2018). than estimated in the 2015 HMDA Rule, conducts open-end lending and the line 84 See the section-by-section analysis of the Bureau proposed in 2017 to increase of business that conducts closed-end § 1003.3(d) in part IV above. 85 for two years (i.e., until January 1, 2020) lending, as the implementation of open- See infra part VII.E.3. 86 The 2015 HMDA Rule established 79 the open-end threshold to 500. This end reporting that became mandatory complementary thresholds that determine whether temporary increase was intended to under the 2015 HMDA Rule would a financial institution is required to report data on allow the Bureau to collect additional coincide with the implementation of the closed-end mortgage loans or open-end lines of data and assess what open-end coverage changes to closed-end reporting under credit, respectively. 80 FR 66128, 66146, 66149, 66162 (Oct. 28, 2015). The 2017 HMDA Rule threshold would best balance the the 2015 HMDA Rule. However, this corrected a drafting error to ensure the institutional benefits and burdens of covering type of cost sharing is less likely now coverage threshold and the transactional coverage institutions. The Bureau finalized the because financial institutions have threshold were complementary. 82 FR 43088, proposal after notice and comment in already implemented almost all of the 43100, 43102 (Sept. 13, 2017). These institutional and transactional coverage thresholds are distinct 80 the 2017 HMDA Rule. closed-end reporting changes required from the thresholds for the EGRRCPA partial under the 2015 HMDA Rule. exemptions in new § 1003.3(d)(2) and (3). 72 82 FR 43088, 43094 (Sept. 13, 2017). Another development since the 87 82 FR 43088, 43094 (Sept. 13, 2017). In the 73 Id. Bureau finalized the 2015 HMDA Rule 2015 HMDA Rule and 2017 HMDA Rule, the 74 Id. is the enactment of the EGRRCPA, Bureau declined to retain optional reporting of 75 See supra notes 60–63 and accompanying text. open-end lines of credit, after concluding that improved visibility into this segment of the 76 82 FR 43088, 43094 (Sept. 13, 2017). 81 As discussed further in the analysis under mortgage market is critical because of the risks 77 Id. Dodd-Frank Act section 1022(b) in part VII, the posed by these products to consumers and local 78 Id. Bureau’s analyses in the May 2019 Proposal were markets and the lack of other publicly available 79 82 FR 33455 (July 20, 2017). based on HMDA data collected in 2016 and 2017 data about these products. Id. at 43095; 80 FR 80 82 FR 43088 (Sept. 13, 2017). Comments and other sources. For part VII of the final rule, the 66128, 66160–61 (Oct. 28, 2015). However, received on the July 2017 HMDA Proposal to Bureau has supplemented the analyses with the Regulation C as amended by the 2017 HMDA Rule change temporarily the open-end threshold are 2018 HMDA data now available and released to the permits voluntary reporting by financial institutions discussed in the 2017 HMDA Rule. Id. at 43094– public on August 30, 2019. that do not meet the open-end threshold. 12 CFR 95. 82 82 FR 43088, 43094 (Sept. 13, 2017). 1003.3(c)(12).

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the temporary increase for two years immediately or during the two-year to take effect in 2022 have time to adapt and to set the permanent coverage period of the proposed extension; to their systems and prepare for threshold at 200 open-end lines of credit raise the open-end threshold even compliance. Consistent with feedback upon the expiration of the proposed further (e.g., to 1,000); or to return to provided by industry stakeholders in extension of the temporary coverage optional rather than mandatory connection with the 2015 HMDA Rule threshold. For the reasons discussed reporting of open-end lines of credit. and the 2017 HMDA Rule, a number of below, the Bureau now amends Other commenters, including a commenters indicated in response to the § 1003.2(g)(1)(v)(B) and comments 2(g)– number of consumer and civil rights May 2019 Proposal that a long 3 and –5, effective January 1, 2020, to groups, a bank, a State attorney general, implementation period is necessary extend until January 1, 2022, the and some members of Congress, when coverage changes result in new temporary open-end institutional expressed opposition to the proposal as institutions having reporting obligations coverage threshold for depository a whole based on their concerns about under HMDA. The Bureau determines institutions of 500 open-end lines of the consequences of exempting that the two-year extension of the credit. The Bureau is also finalizing institutions from HMDA. They temporary coverage threshold of 500 conforming amendments to extend for indicated, for example, that extending lines of credit will provide any newly two years the temporary open-end the temporary threshold of 500 open- covered institutions with sufficient time institutional coverage threshold for end loans for another two years could to revise and update policies and nondepository institutions in exclude a significant percentage of the procedures, implement any necessary § 1003.2(g)(2)(ii)(B) and to align the market. They also expressed concern systems changes, and train staff before timeframe of the temporary open-end that lenders and loans might escape any permanent threshold that the transactional coverage threshold in public scrutiny and that there would be Bureau sets in 2020 takes effect in 2022. § 1003.3(c)(12), as discussed below. As fewer safeguards to prevent events The extension of the temporary noted above, the Bureau intends to similar to the 2008 financial crisis. coverage threshold will also relieve address in a separate final rule in 2020 However, even some commenters who institutions that originate between 100 the May 2019 Proposal’s proposed opposed increasing the permanent and 499 open-end lines of credit of amendment to the permanent coverage open-end threshold recognized the need ongoing costs associated with reporting threshold for open-end lines of credit.88 to provide additional time for lenders open-end lines of credit over the next The Bureau received a number of that will be first-time open-end two years. As noted above, many comments relating to the proposed reporters to prepare. financial institutions and trade extension of the temporary open-end The Bureau has considered the associations expressed in their threshold in §§ 1003.2(g) and comments received and, pursuant to its comments how costly HMDA 1003.3(c)(12). Commenters typically authority under HMDA section 305(a) as compliance can be on an ongoing basis discussed in a general way the open-end discussed above, has decided to extend for smaller institutions. In total, the threshold for HMDA coverage, without the temporary threshold of 500 open- Bureau estimates that extending the distinguishing between the threshold end lines of credit for two years, as temporary open-end coverage threshold applicable to depository institutions proposed. As discussed below, the for two years will reduce operational under § 1003.2(g)(2)(1)(v)(B) and the extension of the temporary coverage costs for institutions by about $9.4 threshold applicable to nondepository threshold will provide additional time million per year in the years 2020 and institutions under § 1003.2(g)(2)(ii)(B). for the Bureau to issue a final rule in 2021.89 Industry commenters generally 2020 on the permanent open-end While the extension of the temporary expressed support for the proposed coverage threshold and for affected threshold increase will reduce market extension. Many industry commenters institutions to prepare for compliance coverage compared to a lower threshold, described the significant costs that with that final rule and will reduce information about a sizeable portion of HMDA data collection and reporting HMDA costs over the next two years, the market will still be available in the imposes on small institutions, and some while still providing significant market next two years under the temporary expressed concern that they might not coverage. threshold of 500. The Bureau has used be able to offer open-end lines of credit The Bureau continues reviewing multiple data sources, including credit at all if the 100 open-end line of credit HMDA data on open-end lines of credit union Call Reports, Call Reports for threshold takes effect. These that financial institutions collected in banks and thrifts, HMDA data, and commenters stated that the anticipated 2018 and reported to the Bureau in Consumer Credit Panel data, to develop cost savings support extending the 2019. As explained in part III above, the updated estimates about open-end current threshold of 500 and noted that Bureau reopened the comment period originations for institutions that are the current threshold of 500 would on the May 2019 Proposal to allow for active and to assess the impact of provide relief for over 600 institutions additional comment relating to these various thresholds on the numbers of in 2020 and 2021. A number of industry open-end data. The two-year temporary institutions which report and the commenters urged the Bureau to make extension of the current 500 open-end number of loans about which they the temporary threshold of 500 open- line of credit coverage threshold will report under various scenarios.90 Based end lines of credit permanent, either ensure the Bureau has time to consider the initial open-end data submitted 89 Additional explanation of the Bureau’s cost 88 Because the extension lasts two years, and the pursuant to the 2015 HMDA Rule and estimates and how the Bureau’s estimate in this Bureau has not yet made a determination about its any additional comments received about final rule of operational savings compares to its proposed permanent threshold, the final rule that data before finalizing any change to estimate in the May 2019 Proposal is provided in restores effective January 1, 2022 the threshold set the Bureau’s analysis under Dodd-Frank Act section in the 2015 HMDA Rule of 100 open-end lines of the permanent threshold. 1022(b) in part VII.E.3 below. As explained in part credit in §§ 1003.2(g) and 1003.3(c)(12), pending The two-year extension of the VII below, the Bureau derived these estimates using further Bureau action. After the reopened comment temporary coverage threshold of 500 estimates of savings for open-end lines of credit for period relating to the permanent threshold closes, open-end lines of credit will also ensure representative financial institutions. the Bureau intends to issue a final rule in 2020 90 Because collection of data on open-end lines of addressing the permanent threshold for open-end that institutions that would be required credit only became mandatory starting in 2018 lines of credit that would take effect on January 1, to report under any new permanent under the 2015 HMDA Rule and 2017 HMDA Rule, 2022. threshold that the Bureau sets in 2020 Continued

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on this information, the Bureau reporting are higher than anticipated, as period relating to the May 2019 estimates that, as of 2018, explained above and in part VII below. Proposal’s proposed amendments to the approximately 333 financial institutions permanent thresholds for closed-end 2(g)(2) Nondepository Financial originated at least 500 open-end lines of mortgage loans and open-end lines of Institution credit in both of the two preceding credit.95 After the reopened comment years, and approximately 1,014 2(g)(2)(ii)(B) period closes, the Bureau intends to financial institutions originated at least Temporary Open-End Line of Credit issue a final rule in 2020 addressing the 100 open-end lines of credit in both of Threshold for Institutional Coverage of permanent threshold for open-end lines the two preceding years.91 Under the Nondepository Institutions of credit. This permanent threshold temporary 500-loan open-end threshold, would take effect on January 1, 2022. the Bureau estimates about 1.23 million The 2015 HMDA Rule established a This final rule temporarily sets the lines of credit or approximately 78 coverage threshold of 100 open-end open-end line of credit threshold for percent of origination volume will be lines of credit in § 1003.2(g)(2)(ii)(B) as institutional coverage of nondepository reported by about 5 percent of all part of the definition of nondepository institutions in § 1003.2(g)(2)(ii)(B) at 500 institutions providing open-end lines of financial institution. As discussed in for calendar years 2020 and 2021, as credit.92 more detail in the section-by-section proposed. This amendment to the open- Extending the temporary threshold of analysis of § 1003.2(g)(1)(v)(B) above, end line of credit threshold for 500 open-end lines of credit for two the 2017 HMDA Rule amended institutional coverage of nondepository years will decrease information about §§ 1003.2(g)(1)(v)(B) and (g)(2)(ii)(B) and institutions in § 1003.2(g)(2)(ii)(B) the open-end line of credit market 1003.3(c)(12) and related commentary to conforms to the amendment that the relative to the information that would be raise temporarily the open-end coverage Bureau is finalizing with respect to the reported if the Bureau were to allow the threshold to 500 lines of credit for two-year extension of the temporary 93 100-loan threshold to take effect on calendar years 2018 and 2019. In the open-end threshold for institutional January 1, 2020. However, the effect of May 2019 Proposal, the Bureau coverage for depository institutions in this threshold increase will be limited, proposed to extend to January 1, 2022, § 1003.2(g)(1)(v)(B) and the two-year because the EGRRCPA now provides a Regulation C’s temporary open-end extension of the temporary open-end partial exemption that exempts almost threshold of 500 open-end lines of threshold for transactional coverage in all of the institutions that the temporary credit for institutional and transactional § 1003.3(c)(12). increase will affect from any obligation coverage of both depository and Pursuant to its authority under HMDA to report many of the data points nondepository institutions. After the section 305(a) as discussed above, the generally required by Regulation C for end of the extension, the May 2019 Bureau is extending for two years the their open-end lines of credit. In light of Proposal would set the threshold at 200 temporary threshold for open-end lines the EGRRCPA’s partial exemption from open-end lines of credit. The Bureau is of credit in § 1003.2(g)(2)(ii)(B). The reporting certain data for open-end lines now finalizing the amendments to Bureau determines that this final rule’s of credit for certain insured depository extend for two years the temporary amendments to § 1003.2(g)(2)(ii)(B) will institutions and insured credit unions, open-end institutional coverage effectuate the purposes of HMDA by continuing the open-end line of credit threshold for nondepository institutions ensuring significant coverage of coverage threshold at 500 will result in in § 1003.2(g)(2)(ii)(B) and intends to nondepository mortgage lending. This a much smaller loss of data than the address the May 2019 Proposal’s extension also facilitates compliance Bureau anticipated when it adopted a proposed amendment to the permanent with HMDA by reducing burden on permanent threshold of 100 open-end coverage threshold for open-end lines of smaller institutions and excluding 94 lines of credit in the 2015 HMDA Rule credit in a separate final rule in 2020. nondepository institutions that are not or when it revisited the open-end line Commenters typically discussed engaged for profit in the business of of credit coverage threshold in the 2017 generally the open-end threshold for mortgage lending. The Bureau believes HMDA Rule. The Bureau determines HMDA coverage, without distinguishing that the reasons provided for extending that the limited decrease in information between the threshold applicable to the temporary open-end threshold for reported occasioned by the temporary depository institutions under depository institutions in the section- adjustment to the open-end threshold is § 1003.2(g)(2)(1)(v)(B) and the threshold by-section analysis of justified by the benefits discussed above applicable to nondepository institutions § 1003.2(g)(1)(v)(B) above apply to the of reducing the burden on smaller under § 1003.2(g)(2)(ii)(B). Comments temporary threshold for nondepository institutions. This burden reduction is received regarding the proposed institutions as well. Additionally, the greater than the Bureau anticipated in extension of the temporary open-end extension of the temporary threshold in the 2015 HMDA Rule, because the threshold are discussed in the section- § 1003.2(g)(2)(ii)(B) will promote number of institutions affected and the by-section analysis of consistency by subjecting nondepository institutions to the same threshold that costs per institution associated with § 1003.2(g)(1)(v)(B). For the reasons discussed in the applies to the depository institutions section-by-section analysis of that make up the bulk of the open-end no single data source existed as of the time of the May 2019 Proposal that could accurately capture § 1003.2(g)(1)(v)(B), and to ensure the line of credit market. According to the the number of originations of open-end lines of thresholds are consistent for depository Bureau’s estimates, nondepository credit in the entire market and by lenders. In part and nondepository institutions, the institutions account for only a small VII of this final rule, the Bureau has supplemented Bureau is finalizing as proposed the percentage of the institutions and loans the analyses from the May 2019 Proposal with the 96 2018 HMDA data that were released to the public extension to January 1, 2022 of in the open-end line of credit market. on August 30, 2019. For information about the Regulation C’s temporary open-end Table 3 in the Bureau’s analysis under HMDA data used in developing and supplementing threshold of 500 open-end lines of Dodd-Frank Act section 1022(b) in part the Bureau estimates, see infra part VII.E.3. credit. As discussed in part III above, VII.E.3 below provides coverage 91 See infra part VII.E.3 at table 3 for estimates of coverage among all lenders that are active in the the Bureau has reopened the comment estimates for nondepository institutions open-end line of credit market at open-end coverage thresholds of 100 and 500. 93 82 FR 43088, 43095 (Sept. 13, 2017). 95 84 FR 37804 (Aug. 2, 2019). 92 Id. 94 See supra note 88. 96 See infra part VII.E.3 at table 3.

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at the current temporary threshold of issue a final rule in 2020 addressing the considered originations and counted 500 open-end lines of credit that the permanent threshold for open-end lines towards the thresholds for partial Bureau is extending. of credit that would take effect on exemptions. Many industry commenters January 1, 2022. To align the two-year stated that they appreciated the Bureau Section 1003.3 Exempt Institutions extension of the temporary open-end quickly implementing the provisions of and Excluded and Partially Exempt threshold for institutional coverage in the EGRRCPA and did not suggest any Transactions § 1003.2(g) with the timeframe for the changes to the proposed regulation text 3(c) Excluded Transactions transactional coverage threshold, the and commentary relating to the partial 3(c)(12) Bureau is also extending the temporary exemptions. A group of 148 national open-end threshold for transactional and local organizations also expressed As adopted in the 2015 HMDA Rule, coverage in § 1003.3(c)(12) and their support for the Bureau’s proposed § 1003.3(c)(12) provides an exclusion comments 3(c)(12)–1 and –2 to 500 for commentary clarifying that a financial from the requirement to report open-end calendar years 2020 and 2021, as institution that is not itself an insured lines of credit for institutions that did proposed. credit union or an insured depository not originate at least 100 such loans in institution is not eligible for a partial 3(d) Partially Exempt Transactions each of the two preceding calendar exemption even if it is an affiliate of an years. This transactional coverage Section 104(a) of the EGRRCPA insured credit union or an insured threshold was intended to complement amended HMDA section 304(i) by depository institution.101 an open-end reporting threshold adding partial exemptions from Section 1003.3(d)(1) sets forth included in the definition of financial HMDA’s requirements that apply to definitions relating to the partial institution in § 1003.2(g), which sets certain transactions of eligible insured exemptions, including a definition of forth Regulation C’s institutional depository institutions and insured optional data that delineates which data coverage. The 2017 HMDA Rule credit unions. In the 2018 HMDA Rule, points are covered by the partial replaced ‘‘each’’ with ‘‘either’’ in the Bureau implemented and clarified exemptions. Section 1003.3(d)(2) and (3) § 1003.3(c)(12) to correct a drafting error HMDA section 304(i) by addressing a set provides the general tests for when the and to ensure that the exclusions of interpretive and procedural questions partial exemptions apply for closed-end provided in that section mirror the loan- relating to the partial exemptions. The mortgage loans and open-end lines of volume thresholds for financial Bureau proposed in § 1003.3(d) and credit, respectively. Section 1003.3(d)(4) institutions in § 1003.2(g).97 As related commentary to incorporate the addresses voluntary reporting of data discussed in more detail in the section- partial exemptions and the that are covered by a partial exemption by-section analysis of § 1003.2(g), in the interpretations and procedures from the for a partially exempt transaction. 2017 HMDA Rule the Bureau also 2018 HMDA Rule into Regulation C and Section 1003.3(d)(5) relates to the non- amended §§ 1003.2(g) and 1003.3(c)(12) further implement HMDA section 304(i) universal loan identifier that financial and related commentary to raise by addressing additional questions that institutions must report for a partially temporarily the open-end threshold in have arisen with respect to the partial exempt transaction if a ULI is not those provisions to 500 lines of credit exemptions.100 For the reasons stated provided. Section 1003.3(d)(6) for calendar years 2018 and 2019.98 In below, the Bureau is now finalizing the implements the statutory exception to the May 2019 Proposal, the Bureau proposed amendments relating to partial the partial exemptions for insured proposed to extend to January 1, 2022, exemptions in § 1003.3(d) and its depository institutions with certain less Regulation C’s current temporary open- associated commentary as proposed. than satisfactory examination histories end threshold for institutional and Although some commenters under the CRA. Each of these transactional coverage of 500 open-end expressed general opposition to the May paragraphs and related commentary are lines of credit and then to set the 2019 Proposal in its entirety, there were discussed in more detail below. threshold at 200 open-end lines of credit no specific concerns articulated in the The loan thresholds added by the upon the expiration of the proposed comments regarding the regulation text EGRRCPA to HMDA section 304(i) extension of the temporary threshold. and commentary that the Bureau resemble in many respects the loan Comments regarding the proposed proposed to implement EGRRCPA. thresholds that determine institutional temporary adjustment to the open-end Commenters that discussed the and transactional coverage in Regulation threshold are discussed in the section- proposed amendments relating to C. For example, both sets of thresholds by-section analysis of EGRRCPA generally expressed support relate to originations (rather than § 1003.2(g)(1)(v)(B). for the Bureau’s implementation of applications or purchases) and apply For the reasons discussed in the section 104(a) of the EGRRCPA. A few separately to closed-end mortgage loans section-by-section analysis of commenters specifically expressed and open-end lines of credit. In light of § 1003.2(g)(1)(v)(B), the Bureau is now support for the Bureau’s interpretation these similarities, the Bureau has used extending to January 1, 2022, Regulation on issues related to partial exemptions the institutional and transactional C’s 500 open-end line of credit after a merger or acquisition and for the coverage thresholds in existing threshold. As discussed in part III guidance related to determining loans Regulation C as a model in interpreting above, the Bureau has reopened the and lines of credit that would be certain aspects of the partial exemption comment period relating to the May thresholds. Because the Bureau 2019 Proposal’s proposed amendments 100 This final rule includes related amendments recognizes that there are advantages to to the permanent thresholds for closed- in § 1003.4 and its commentary referencing industry stakeholders and others from § 1003.3(d) that are discussed in the section-by- using consistent language to describe end mortgage loans and open-end lines section analysis of § 1003.4. The Filing Instructions of credit.99 After reviewing the Guide for HMDA Data Collected in 2020 (2020 FIG) similar requirements, the final rule (like comments received during the reopened provides guidance to financial institutions on how comment period, the Bureau intends to to indicate in their HMDA submissions if they are 101 These groups also stated in their comment invoking a partial exemption. See Fed. Fin. Insts. letter that the threshold calculations for Examination Council (FFIEC), ‘‘Filing Instructions determining whether an institution reports HMDA 97 82 FR 43088, 43102 (Sept. 13, 2017). Guide for HMDA Data Collected in 2020’’ (Sept. data should be applied at the holding company 98 Id. at 43095. 2019), https://s3.amazonaws.com/cfpb-hmda- level. This issue is outside the scope of the Bureau’s 99 84 FR 37804 (Aug. 2, 2019). public/prod/help/2020-hmda-fig.pdf. proposal.

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the proposal) uses language that exemption under § 1003.3(d)(2) and (3), (3), a financial institution must collect, parallels language in existing Regulation even if it is owned by or affiliated with record, and report optional data as C wherever feasible. an insured credit union or an insured otherwise required under part 1003. Comments 3(d)–1 through –5 address depository institution. This approach is The EGRRCPA added partial certain issues relating to the partial consistent with HMDA section 304(i)(1) exemptions to HMDA section 304(i), exemptions that the 2018 HMDA Rule and (2), which by its terms applies and the definition of optional data in does not specifically discuss. Comments ‘‘[w]ith respect to an insured depository § 1003.3(d)(1)(iii) specifies the data 3(d)–1 through –3 explain how to institution or insured credit union’’ as points covered by the partial determine whether a partial exemption defined in HMDA section 304(o). To exemptions. As the 2018 HMDA Rule applies to a transaction after a merger or clarify further the EGRRCPA’s partial explains, if a transaction qualifies for acquisition. Comment 3(d)–1 describes exemptions, the comment also provides one of the EGRRCPA’s partial the application of the partial exemption an example describing when a exemptions, HMDA section 304(i) thresholds to a surviving or newly subsidiary of an insured credit union or provides that the requirements of formed institution. Comment 3(d)–2 insured depository institution could HMDA section 304(b)(5) and (6) shall describes how CRA examination history claim a partial exemption under not apply. In the 2018 HMDA Rule, the is handled in the event of a merger or § 1003.3(d) for its closed-end mortgage Bureau interpreted the requirements of acquisition for purposes of loans. HMDA section 304(b)(5) and (6) to § 1003.3(d)(6), which implements the include the 26 data points listed in exception to the partial exemptions for 3(d)(1) Table 1 in the 2018 HMDA Rule, which certain less than satisfactory CRA Proposed § 1003.3(d)(1) and proposed are found in § 1003.4(a)(1)(i), (a)(9)(i), examination histories in HMDA section comment 3(d)(1)(iii)–1 define terms and (a)(12), (15) through (30), and (32) 304(i)(3). Comment 3(d)–3 describes the related to the partial exemptions for through (38). applicability of partial exemptions purposes of proposed § 1003.3(d). As The Dodd-Frank Act added HMDA during the calendar year of a merger or mentioned above, commenters that section 304(b)(5) and (6), which requires acquisition and provides various discussed the proposed amendments reporting of certain data points and examples. These comments are modeled relating to the EGRRCPA generally provides the Bureau discretion to 104 closely on existing comments 2(g)–3 and expressed support for the Bureau’s require additional data points. In the –4, which explain how to determine implementation of section 104(a) of the 2015 HMDA Rule, the Bureau whether an institution satisfies the EGRRCPA and did not suggest any changes to the proposed regulation text 104 HMDA section 304(b)(5) requires disclosure of definition of financial institution in the number and dollar amount of mortgage loans § 1003.2(g) after a merger or acquisition. or commentary. For the reasons grouped according to measurements of: Comment 3(d)–4 relates to whether discussed below, the Bureau is adopting • The total points and fees payable at origination activities with respect to a particular § 1003.3(d)(1) and comment in connection with the mortgage as determined by closed-end mortgage loan or open-end 3(d)(1)(iii)–1 as proposed. the Bureau; • line of credit constitute an origination Section 1003.3(d)(1)(i) defines the The difference between the APR associated with the loan and a benchmark rate or rates for all for purposes of the partial exemption term ‘‘insured credit union’’ to mean an loans; loan thresholds. Given the similarities insured credit union as defined in • The term in months of any prepayment penalty between the coverage thresholds section 101 of the Federal Credit Union or other fee or charge payable on repayment of some currently in Regulation C 102 and the Act (12 U.S.C. 1752), and portion of principal or the entire principal in § 1003.3(d)(1)(ii) defines the term advance of scheduled payments; and partial exemption thresholds under the • Such other information as the Bureau may EGRRCPA, the Bureau believes that the ‘‘insured depository institution’’ to require. same guidance for determining whether mean an insured depository institution HMDA section 304(b)(6) requires disclosure of activities constitute an origination that as defined in section 3 of the Federal the number and dollar amount of mortgage loans applies for purposes of the coverage Deposit Insurance Act (12 U.S.C. 1813). and completed applications grouped according to These definitions are consistent with measurements of: thresholds in Regulation C’s definition • The value of the real property pledged or of financial institution should apply the way HMDA section 304(o) defines proposed to be pledged as collateral; with respect to the partial exemption the two terms for purposes of HMDA • The actual or proposed term in months of any thresholds. Consistent with the section 304. introductory period after which the rate of interest Section 1003.3(d)(1)(iii) and comment may change; approach taken in existing comment • 3(d)(1)(iii)–1 define the term ‘‘optional The presence of contractual terms or proposed 2(g)–5 for the definition of financial contractual terms that would allow the mortgagor institution, comment 3(d)–4 refers to data’’ for purposes of § 1003.3(d). For or applicant to make payments other than fully comments 4(a)–2 through –4 for the reasons discussed below, amortizing payments during any portion of the loan guidance on this issue in the context of § 1003.3(d)(1)(iii) generally defines term; optional data as the data identified in • The actual or proposed term in months of the the partial exemptions. mortgage loan; Comment 3(d)–5 addresses questions § 1003.4(a)(1)(i), (a)(9)(i), and (a)(12), • The channel through which application was about whether a financial institution (15) through (30), and (32) through (38). made; that does not itself meet the Comment 3(d)(1)(iii)–1 explains that the • As the Bureau may determine to be requirements for a partial exemption definition of optional data in appropriate, a unique identifier that identifies the § 1003.3(d)(1)(iii) identifies the data that loan originator as set forth in section 5102 of this can claim an exemption if an affiliate or title; parent company meets the are covered by the partial exemptions • As the Bureau may determine to be requirements. It clarifies that a financial for certain transactions of insured appropriate, a universal loan identifier; institution that is not itself an insured depository institutions and insured • As the Bureau may determine to be credit union or an insured depository credit unions under § 1003.3(d). It also appropriate, the parcel number that corresponds to the real property pledged or proposed to be pledged 103 institution is not eligible for a partial clarifies that, if a transaction is not as collateral; partially exempt under § 1003.3(d)(2) or • The credit score of mortgage applicants and 102 See 12 CFR 1003.2(g)(1)(v) and (g)(2)(ii) and mortgagors, in such form as the Bureau may 1003.3(c)(11) and (12). defined in § 1003.3(d)(1)(i) and (ii), which, as prescribe; and 103 For purposes of the comment, insured credit explained below, mirrors how those terms are • Such other information as the Bureau may union and insured depository institution are defined in HMDA section 304(o). require.

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implemented the new data points the result generated by the automated 304(b)(5) and (6) was added to HMDA specified in the Dodd-Frank Act underwriting system; whether the loan by the Dodd-Frank Act, pursuant to (including those added in HMDA is a reverse mortgage; whether the loan HMDA authority that pre-existed section 304(b)(5) and (6)), added a is an open-end line of credit; whether section 304(b)(5) and (6). Although the number of additional data points the loan is primarily for a business or Bureau cited HMDA section 304(b)(5) pursuant to the Bureau’s discretionary commercial purpose; and the reasons for and (6) as additional support for these authority, and made revisions to certain denial of a loan application, which were four data points in the 2015 HMDA pre-existing data points to clarify their optionally reported under the Board’s Rule, the Bureau relied on HMDA requirements, provide greater specificity rule but became mandatory in the 2015 section 305(a), which predates the in reporting, and align certain data HMDA Rule.106 The 2018 HMDA Rule Dodd-Frank Act and independently points more closely with industry data indicates that insured depository provides legal authority for their standards. institutions and insured credit unions adoption.111 Given that these data As explained in the 2018 HMDA Rule, need not report these 26 data points for points were not newly added by the the Bureau interprets the requirements transactions that qualify for a partial Dodd-Frank Act or the Bureau, the of HMDA section 304(b)(5) and (6) for exemption, unless otherwise required Bureau concluded in the 2018 HMDA purposes of HMDA section 304(i) to by their regulator.107 Rule that the EGRRCPA’s amendments include the 12 data points that the As the 2018 HMDA Rule explains, the to HMDA section 304 do not affect Bureau added to Regulation C in the Bureau interprets the requirements of them.112 A large number of consumer 2015 HMDA Rule to implement data HMDA section 304(b)(5) and (6) not to advocacy and community development points specifically identified in HMDA include four other data points that are groups expressed their agreement with section 304(b)(5)(A) through (C) or similar or identical to data points added the Bureau that these data points were (b)(6)(A) through (I), which are the to Regulation C by the Board and that not affected by the partial exemptions following: ULI; property address; rate the Bureau re-adopted in the 2015 under the EGRRCPA. spread; credit score; total loan costs or HMDA Rule: Lien status of the subject total points and fees; prepayment property; whether the loan is subject to The requirements of HMDA section penalty term; loan term; introductory the Home Ownership and Equity 304(b)(5) and (6), and thus the partial rate period; non-amortizing features; Protection Act of 1994 (HOEPA); exemptions, also do not include 17 property value; application channel; construction method for the dwelling other data points included in the 2015 and mortgage loan originator related to the subject property; and the HMDA Rule that are similar or identical identifier.105 As the 2018 HMDA Rule total number of individual dwelling to pre-existing Regulation C data points explains, the Bureau also interprets the units contained in the dwelling related established by the Board and that were requirements of HMDA section 304(b)(5) to the loan (number of units).108 The not required by HMDA section 304(b)(5) and (6) to include the 14 data points 2015 HMDA Rule did not alter the pre- and (6) or promulgated by the Bureau that were not found in Regulation C existing Regulation C HOEPA status and using discretionary authority under prior to the Dodd-Frank Act and that the lien status data requirements.109 HMDA section 304(b)(5)(D) and (b)(6)(J). Bureau required in the 2015 HMDA Construction method and total units, These are: The Legal Entity Identifier Rule citing its discretionary authority together, replaced the pre-existing (which replaced the pre-existing under HMDA section 304(b)(5)(D) and Regulation C property type data point; respondent identifier); application date; (b)(6)(J). Specifically, these data points the information required by the new loan type; loan purpose; preapproval; are the following: The total origination data points is very similar to what the occupancy type; loan amount; action charges associated with the loan; the Board required, but institutions now taken; action taken date; State; county; total points paid to the lender to reduce census tract; ethnicity; race; sex; must report the precise number of units 113 the interest rate of the loan (discount rather than categorizing dwellings into income; and type of purchaser. points); the amount of lender credits; one- to four-family dwellings and Additionally, the requirements of the interest rate applicable at closing or multifamily dwellings.110 HMDA section 304(b)(5) and (6), and account opening; the debt-to-income The Board adopted its versions of thus the partial exemptions, do not ratio; the ratio of the total amount of these data points before HMDA section include age because the Dodd-Frank Act debt secured by the property to the added that requirement instead to 114 value of the property (combined loan-to- 106 12 CFR 1003.4(a)(16), (18) through (21), (23) HMDA section 304(b)(4). value ratio); for transactions involving and (24), (29) and (30), (32), and (35) through (38). Consistent with the scope of the new manufactured homes, whether the loan 107 Financial institutions regulated by the OCC partial exemptions as explained in the or application is or would have been are required to report reasons for denial on their HMDA loan/application registers pursuant to 12 2018 HMDA Rule, the general definition secured by a manufactured home and CFR 27.3(a)(1)(i) and 128.6. Similarly, pursuant to of optional data in § 1003.3(d)(1)(iii) land or by a manufactured home and regulations transferred from the Office of Thrift encompasses 26 of the 48 data points not land (manufactured home secured Supervision, certain financial institutions currently set forth in Regulation C. property type); the land property supervised by the FDIC are required to report reasons for denial on their HMDA loan/application interest for loans or applications related registers. 12 CFR 390.147. 111 80 FR 66128, 66180–81, 66199–201, 66227 to manufactured housing (manufactured 108 12 CFR 1003.4(a)(5), (13) and (14), and (31). (Oct. 28, 2015). home land property interest); the 109 The 2015 HMDA Rule extended the 112 This interpretation is consistent with the number of individual dwellings units requirement to report lien status to purchased loans EGRRCPA’s legislative history, which suggests that that are income-restricted pursuant to and no longer requires reporting of information Congress was focused on relieving regulatory about unsecured loans. 80 FR 66128, 66201 (Oct. burden associated with the Dodd-Frank Act. See, Federal, State, or local affordable 28, 2015). e.g., 164 Cong. Rec. S1423–24 (daily ed. Mar. 7, housing programs (multifamily 110 Prior to 2018, Regulation C required reporting 2018) (statement of Sen. Crapo), S1529–30 affordable units); information related to of property type as one- to four-family dwelling (statement of Sen. McConnell), S1532–33 (statement the automated underwriting system (other than manufactured housing), manufactured of Sen. Cornyn), S1537–39 (statement of Sen. housing, or multifamily dwelling, whereas the Lankford), S1619–20 (statement of Sen. Cornyn). used in evaluating an application and current rule requires reporting of whether the 113 12 CFR 1003.4(a)(1)(ii), (a)(2) through (4) and dwelling is site-built or a manufactured home, (6) through (8), (a)(9)(ii), and (a)(10) and (11) and 105 12 CFR 1003.4(a)(1)(i), (a)(9)(i), and (a)(12), together with the number of individual dwelling 1003.5(a)(3). (15), (17), (22), (25) through (28), and (33) and (34). units. 114 Dodd-Frank Act section 1094(3)(A)(i).

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For ease of reference throughout unaffected by the EGRRCPA.116 is not required to collect, record, report, § 1003.3(d), § 1003.3(d)(1)(iv) defines Accordingly, in the 2018 HMDA Rule, or disclose optional data as defined in partially exempt transaction as a the Bureau interpreted the term ‘‘closed- § 1003.3(d)(1)(iii) for applications for covered loan or application that is end mortgage loan’’ to include any open-end lines of credit that it receives, partially exempt under § 1003.3(d)(2) or closed-end mortgage loan as defined in open-end lines of credit that it (3). § 1003.2(d) that is not excluded from originates, and open-end lines of credit Regulation C pursuant to § 1003.3(c)(1) that it purchases. 3(d)(2) through (10) or (c)(13). Section The EGRRCPA and HMDA do not HMDA section 304(i)(1) provides that 1003.3(d)(2) incorporates that define the term ‘‘open-end line of the requirements of HMDA section interpretation into Regulation C. credit’’ for purposes of HMDA section 304(b)(5) and (6) shall not apply with Comment 3(d)(2)–1 provides an 304(i). They also do not specify whether respect to closed-end mortgage loans of illustrative example of how the closed- the term includes lines of credit that an insured depository institution or end partial exemption threshold works. would otherwise not be subject to insured credit union if it originated For the reasons stated in the section-by- HMDA reporting under Regulation C, fewer than 500 closed-end mortgage section analysis of § 1003.3(d) above, such as loans used primarily for loans in each of the two preceding comment 3(d)(2)–1 also provides a agricultural purposes.117 The Bureau calendar years. The Bureau proposed cross-reference to comments 4(a)–2 explained in the 2018 HMDA Rule its § 1003.3(d)(2) and comment 3(d)(2)–1 to through –4 for guidance about the view that the term ‘‘open-end line of implement this provision. As mentioned activities that constitute an origination. credit’’ as used in HMDA section 304(i) is best interpreted to include only those above, commenters that discussed the 3(d)(3) proposed amendments relating to open-end lines of credit that would EGRRCPA generally expressed support HMDA section 304(i)(2) provides that otherwise be reportable under HMDA. for the Bureau’s implementation of the requirements of HMDA section This interpretation is consistent with section 104(a) of the EGRRCPA and did 304(b)(5) and (6) shall not apply with how lines of credit are counted for not suggest any changes to the proposed respect to open-end lines of credit of an purposes of the thresholds in Regulation regulation text or commentary. As insured depository institution or C’s existing institutional and explained below, the Bureau is insured credit union if it originated transactional coverage provisions, finalizing § 1003.3(d)(2) and comment fewer than 500 open-end lines of credit which are independent of the new 3(d)(2)–1 as proposed. in each of the two preceding calendar partial exemptions and unaffected by Section 1003.3(d)(2) states that, years. The Bureau proposed the EGRRCPA. Accordingly, in the 2018 except as provided in § 1003.3(d)(6), an § 1003.3(d)(3) and comment 3(d)(3)–1 to HMDA Rule, the Bureau interpreted the insured depository institution or implement this provision. As mentioned term ‘‘open-end line of credit’’ to insured credit union that, in each of the above, commenters that discussed the include any open-end line of credit as two preceding calendar years, originated proposed amendments relating to defined in § 1003.2(o) that is not fewer than 500 closed-end mortgage EGRRCPA generally expressed support excluded from Regulation C pursuant to § 1003.3(c)(1) through (10). Section loans that are not excluded from part for the Bureau’s implementation of 1003.3(d)(3) incorporates that 1003 pursuant to § 1003.3(c)(1) through section 104(a) of the EGRRCPA and did interpretation into Regulation C. (10) or (c)(13) is not required to collect, not suggest any changes to the regulation text or commentary. The Comment 3(d)(3)–1 provides a cross- record, or report optional data as reference to § 1003.3(c)(12) and defined in § 1003.3(d)(1)(iii) for Bureau is finalizing § 1003.3(d)(3) and comment 3(d)(3)–1 as proposed. comments 3(c)(12)–1 and –2, which applications for closed-end mortgage provide an exclusion for certain open- loans that it receives, closed-end Section 1003.3(d)(3) provides that, except as provided in § 1003.3(d)(6), an end lines of credit from Regulation C mortgage loans that it originates, and and permit voluntary reporting of such closed-end mortgage loans that it insured depository institution or insured credit union that, in each of the transactions under certain purchases. circumstances. While the temporary The EGRRCPA and HMDA do not two preceding calendar years, originated fewer than 500 open-end lines of credit threshold of 500 open-end lines of define the term ‘‘closed-end mortgage that are not excluded from part 1003 credit is in place for institutional and loan’’ for purposes of HMDA section pursuant to § 1003.3(c)(1) through (10) transactional coverage, all of the open- 304(i). They also do not specify whether end lines of credit that are covered by the term includes loans that would 116 As discussed above in the section-by-section the partial exemption for open-end lines otherwise not be subject to HMDA analysis of §§ 1003.2(g) and 1003.3(c), the current of credit in HMDA section 304(i)(2) are reporting under Regulation C, such as definition of ‘‘depository financial institution’’ in completely excluded from the loans used primarily for agricultural § 1003.2(g)(1)(v) is limited to institutions that either requirements of part 1003 under current purposes.115 The Bureau explained in (1) originated in each of the two preceding calendar years at least 25 closed-end mortgage loans that are §§ 1003.2(g)(1)(v) and 1003.3(c)(12). For the 2018 HMDA Rule that the term not excluded from Regulation C pursuant to the reasons stated in the section-by- ‘‘closed-end mortgage loan’’ as used in § 1003.3(c)(1) through (10) or (c)(13); or (2) section analysis of § 1003.3(d) above, HMDA section 304(i) is best interpreted originated in each of the two preceding calendar comment 3(d)(3)–1 also provides a to include only those closed-end years at least 500 open-end lines of credit that are not excluded from Regulation C pursuant to cross-reference to comments 4(a)–2 mortgage loans that would otherwise be § 1003.3(c)(1) through (10). See also 12 CFR through –4 for guidance about the reportable under HMDA. This 1003.3(c)(11), (12) (excluding closed-end mortgage activities that constitute an origination. interpretation is consistent with how loans from the requirements of Regulation C if the loans are counted for purposes of the financial institution originated fewer than 25 3(d)(4) closed-end mortgage loans in either of the two thresholds in Regulation C’s existing preceding calendar years, and excluding open-end Some data points required under institutional and transactional coverage lines of credit from the requirements of Regulation Regulation C are reported using provisions, which are independent of C if the financial institution originated fewer than multiple data fields, such as the the new partial exemptions and 500 open-end lines of credit in either of the two preceding calendar years). The threshold of 500 property address data point, which open-end lines of credit for institutional and 115 12 CFR 1003.3(c)(9). transactional coverage in Regulation C is temporary. 117 See 12 CFR 1003.3(c)(9).

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consists of street address, city, State, depository institutions and insured other key stakeholders. Accordingly, the and Zip Code data fields. The 2018 credit unions have had time to adjust Bureau indicated in the 2018 HMDA HMDA Rule provides that insured their systems to implement the partial Rule that the HMDA platform would depository institutions and insured exemptions, some may still find it less continue to accept submissions of a data credit unions covered by a partial burdensome to report data covered by a field that is covered by a partial exemption have the option of reporting partial exemption, especially if their exemption under the EGRRCPA for a exempt data fields as long as they report loan volumes tend to fluctuate just specific loan or application as long as all data fields within any exempt data above or below the threshold from year insured depository institutions and point for which they report data. to year. The Bureau concluded in the insured credit unions that choose to Proposed § 1003.3(d)(4) and proposed 2018 HMDA Rule that section 104(a) is voluntarily report the data include all comments 3(d)(4)–1 to –3 and best interpreted as permitting optional other data fields that the data point 3(d)(4)(i)–1 would incorporate this reporting of data covered by the comprises. aspect of the 2018 HMDA Rule into EGRRCPA’s partial exemptions. Section Section 1003.3(d)(4) incorporates the Regulation C and provide additional 104(a) provides that certain voluntary reporting interpretations and clarity regarding voluntary reporting of requirements do not apply to affected procedures from the 2018 HMDA Rule the property address data point. As institutions but does not prohibit those into Regulation C. Since issuing the mentioned above, commenters that affected institutions from voluntarily 2018 HMDA Rule, the Bureau has also discussed the proposed amendments reporting data. This interpretation is received questions relating to voluntary relating to EGRRCPA generally consistent not only with the statutory reporting of property address under expressed support for the Bureau’s text but also with the apparent § 1003.4(a)(9)(i). The property address implementation of section 104(a) of the congressional intent to reduce burden data point under § 1003.4(a)(9)(i) is EGRRCPA and did not suggest any on certain institutions. Accordingly, the covered by the partial exemptions and changes. For the reasons explained Bureau interpreted the EGRRCPA in the includes State as a data field, yet State below, the Bureau is finalizing 2018 HMDA Rule to permit insured is also a separate data point under § 1003.3(d)(4) and comments 3(d)(4)–1 depository institutions and insured § 1003.4(a)(9)(ii)(A) that is not covered and 3(d)(4)(i)–1 as proposed. credit unions voluntarily to report data by the partial exemptions. To address As the 2018 HMDA Rule explains, that are covered by the partial possible confusion, § 1003.3(d)(4) and whether a partial exemption applies to exemptions. comment 3(d)(4)(i)–1 include additional an institution’s lending activity for a Aspects of the Bureau’s current detail about voluntary reporting of particular calendar year depends on an HMDA platform used for receiving property address. HMDA submissions, including edit institution’s origination activity in each Section 1003.3(d)(4) provides that a checks 119 performed on incoming of the preceding two years. In some financial institution eligible for a partial submissions, are set up with the cases, coverage therefore cannot be exemption under § 1003.3(d)(2) or (3) expectation that HMDA reporters will determined until just before data may collect, record, and report optional collection must begin for a calendar provide data for an entire data point when data are reported for any data data as defined in § 1003.3(d)(1)(iii) for year. For example, whether a partial a partially exempt transaction as though exemption applies to closed-end field within that data point. The Bureau explained in the 2018 HMDA Rule that the institution were required to do so, mortgage loans for which final action is provided that: (i) If the institution taken in 2020 depends on the number adjusting the HMDA platform to accept submissions in which affected reports the street address, city name, or of closed-end mortgage loans originated Zip Code for the property securing a by the insured depository institution or institutions report some, but not all, data fields in a data point covered by a covered loan, or in the case of an insured credit union in 2018 and 2019. application, proposed to secure a Thus, an insured depository institution partial exemption for a specific transaction would increase operational covered loan pursuant to or insured credit union might not know § 1003.4(a)(9)(i), it reports all data that until the end of 2019 what information complexity and costs associated with changing the HMDA edits in the Filing would be required by § 1003.4(a)(9)(i) if it needs to collect in 2020 and report in the transaction were not partially 2021. Some insured depository Instructions Guide for HMDA Data Collected. Doing so would result in a exempt; and (ii) If the institution reports institutions and insured credit unions any data for the transaction pursuant to eligible for a partial exemption under less efficient implementation and submission process for the Bureau, § 1003.4(a)(15), (16), (17), (27), (33), or the EGRRCPA may therefore find it less HMDA reporters, their vendors, and (35), it reports all data that would be burdensome to report all of the data, required by § 1003.4(a)(15), (16), (17), including the exempt data points, than the obligation to report certain data in 2019 that (27), (33), or (35), respectively, if the to separate the exempt data points from may have been collected before May 24, 2018. If transaction were not partially exempt. the required data points and exclude the optional reporting of data covered by a partial Comment 3(d)(4)–1 provides an exempt data points from their exemption were not permitted, such institutions example of voluntary reporting that is 118 would have had to remove exempt data previously submissions. Even when insured collected before submitting their 2018 data in early permitted under § 1003.3(d)(4). 2019, a process that could have been burdensome Comment 3(d)(4)–2 addresses how 118 The Bureau recognized in the 2018 HMDA for some institutions. financial institutions may handle Rule that this might be particularly true with 119 The HMDA edit checks are rules to assist filers respect to data submission in 2019, as collection of in checking the accuracy of HMDA data prior to partially exempt transactions within the 2018 data was already underway when the submission. The 2020 FIG, a compendium of same loan/application register. It EGRRCPA took effect, and system changes resources to help financial institutions file HMDA explains that a financial institution may implementing the new partial exemptions may take data collected in 2019 with the Bureau in 2020, collect, record, and report optional data time to complete. In the 2018 HMDA Rule, the explains that there are four types of edit checks: Bureau interpreted the EGRRCPA to apply to data Syntactical, validity, quality, and macro quality. for some partially exempt transactions that are collected or reported under HMDA on or Table 2 (Loan/Application Register) in the 2020 FIG under § 1003.3(d) in the manner after May 24, 2018. Because data collected from identifies the data fields currently associated with specified in § 1003.3(d)(4), even if it January 1, 2018, to May 23, 2018, would not be each data point. See FFIEC, ‘‘Filing Instructions does not collect, record, and report reported until early 2019, the EGRRCPA relieves Guide for HMDA Data Collected in 2020,’’ at 15– insured depository institutions and insured credit 66 (Sept. 2019), https://s3.amazonaws.com/cfpb- optional data for other partially exempt unions that are eligible for a partial exemption of hmda-public/prod/help/2020-hmda-fig.pdf. transactions under § 1003.3(d).

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Comment 3(d)(4)–3 addresses how to that meets certain requirements for any with minor adjustments. As the 2018 handle a transaction that is partially partially exempt transaction for which HMDA Rule explains, a NULI does not exempt pursuant to § 1003.3(d) and for they do not report a ULI. Proposed need to be unique within the industry which a particular requirement to report § 1003.3(d)(5) and proposed comments and therefore does not need to include optional data is not applicable to the 3(d)(5)–1 and –2 would incorporate the a Legal Entity Identifier as the ULI does. transaction. The comment explains that, NULI requirements from the 2018 A check digit is not required as part of in that circumstance, the insured HMDA Rule into Regulation C, with a NULI, as it is for a ULI under depository institution or insured credit minor adjustments for clarity. As § 1003.4(a)(1)(i)(C), but may be union complies with the particular mentioned above, commenters that voluntarily included in a NULI requirement by reporting either that the discussed the proposed amendments provided that the NULI, including the transaction is exempt from the relating to EGRRCPA generally check digit, does not exceed 22 requirement or that the requirement is expressed support for the Bureau’s characters. Beyond these important not applicable.120 It also explains that implementation of section 104(a) of the differences, there are a number of an institution is considered as reporting EGRRCPA and did not suggest any similarities between the requirements data in a data field for purposes of changes. With respect to the NULI, a for the ULI and those for the NULI. To § 1003.3(d)(4)(i) and (ii) if it reports not national trade association expressed the extent that NULI requirements applicable for that data field for a support for the clarifications on the resemble requirements for the ULI, the partially exempt transaction. The technical issues provided in the Bureau has conformed § 1003.3(d)(5) comment also provides examples. proposal. For the reasons provided and its commentary to the Comment 3(d)(4)(i)–1 explains that, if below, the Bureau is finalizing corresponding text of existing an institution eligible for a partial § 1003.3(d)(5) and comments 3(d)(5)–1 § 1003.4(a)(1)(i) and its commentary for exemption under § 1003.3(d)(2) or (3) and –2 as proposed. ease of reference and consistency. reports the street address, city name, or In the 2015 HMDA Rule, the Bureau Section 1003.3(d)(5) provides that, if, Zip Code for a partially exempt interpreted ULI as used in HMDA pursuant to § 1003.3(d)(2) or (3), a transaction pursuant to § 1003.4(a)(9)(i), section 304(b)(6)(G) to mean an financial institution does not report a it reports all data that would be required identifier that is unique within the ULI pursuant to § 1003.4(a)(1)(i) for an by § 1003.4(a)(9)(i) if the transaction industry and required that the ULI application for a covered loan that it were not partially exempt, including the include the Legal Entity Identifier of the receives, a covered loan that it State. The comment also explains that institution that assigned the ULI. originates, or a covered loan that it an insured depository institution or Although the EGRRCPA exempts certain purchases, the financial institution shall insured credit union that reports the transactions from the ULI requirement, assign and report a NULI. It further State pursuant to § 1003.4(a)(9)(ii) or loans and applications must be provides that, to identify the covered comment 4(a)(9)(ii)–1 for a partially identifiable in the HMDA data to ensure loan or application, the NULI must be exempt transaction without reporting composed of up to 22 characters, which: proper HMDA submission, processing, • any other data required by and compliance.122 The EGRRCPA did May be letters, numerals, or a § 1003.4(a)(9)(i) is not required to report not change this fundamental component combination of letters and numerals; • Must be unique within the annual the street address, city name, or Zip of data reporting, which predates the loan/application register in which the Code pursuant to § 1003.4(a)(9)(i). The Dodd-Frank Act’s HMDA amendments covered loan or application is included; Bureau believes that this comment will and existed under Regulation C prior to help to clarify that, even though State is and the 2015 HMDA Rule. Accordingly, • Must not include any information a property address data field under while insured depository institutions § 1003.4(a)(9)(i), reporting State does not that could be used to directly identify and insured credit unions do not have the applicant or borrower. trigger the requirement to report other to report a ULI for a partially exempt property address data fields under Comment 3(d)(5)–1 explains the transaction, they must continue to requirement that the NULI must be § 1003.3(d)(4)(i), because State is also a provide certain information so that each stand-alone data point under unique within the annual loan/ loan and application they report for application register in which the § 1003.4(a)(9)(ii)(A) that is not covered HMDA purposes is identifiable. The by the partial exemptions. covered loan or application is included. ability to identify individual loans and Comment 3(d)(5)–2 clarifies the scope of 3(d)(5) applications is necessary to facilitate information that could be used to Pursuant to HMDA section 304(i), efficient and orderly submission of directly identify the applicant or insured depository institutions and HMDA data and communications borrower for purposes of insured credit unions are not required to between the institution, the Bureau, and § 1003.3(d)(5)(iii), using the same report a ULI for partially exempt other applicable regulators. For language that appears in comment transactions.121 To ensure that partially example, identification of loans and 4(a)(1)(i)–2 with respect to the ULI. exempt transactions can be identified in applications is necessary to address The final rule’s requirements for the the HMDA data, the 2018 HMDA Rule problems identified in edit checks done NULI are consistent with those in the requires financial institutions to provide upon submission or answer questions 2018 HMDA Rule. However, the 2018 a non-universal loan identifier (NULI) that arise when regulators otherwise HMDA Rule states that the NULI must review HMDA submissions. be ‘‘unique within the insured 120 As noted above, the 2020 FIG provides To ensure the orderly administration depository institution or credit union,’’ guidance to financial institutions on how to of the HMDA program, § 1003.3(d)(5) whereas § 1003.3(d)(5)(ii) states that the indicate in their HMDA submissions if they are and comments 3(d)(5)–1 and –2 NULI must be ‘‘unique within the invoking a partial exemption. See supra note 100. incorporate the NULI requirements of 121 Prior to the passage of the Dodd-Frank Act, the annual loan/application register in Board required reporting of an identifying number the 2018 HMDA Rule into Regulation C which the covered loan or application is for the loan or application but did not require that included.’’ This adjustment and similar the identifier be universal. HMDA section 122 HMDA requires that covered loans and 304(b)(6)(G) requires reporting of, ‘‘as the Bureau applications be ‘‘itemized in order to clearly and adjustments that appear in comment may determine to be appropriate, a universal loan conspicuously disclose’’ the applicable data for 3(d)(5)–1 clarify that the NULI must be identifier.’’ each loan or application. 12 U.S.C. 2803(a)(2). unique within a financial institution’s

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yearly HMDA submission but the NULI 807(b)(2) of the CRA. As mentioned also proposed to make a similar change does not need to be unique across above, commenters that discussed the to comment 4(a)–1. The Bureau reporting years. For the same reason, the proposed amendments relating to requested comment on these proposed final rule does not incorporate the EGRRCPA generally expressed support amendments and the other proposed portion of the 2018 HMDA Rule stating for the Bureau’s implementation of amendments to § 1003.4(a) relating to that a financial institution may not use section 104(a) of the EGRRCPA and did the partial exemptions that are a NULI previously reported if the not suggest any changes. For the reasons discussed below. Commenters that institution reinstates or reconsiders an explained below, the Bureau is discussed the proposed amendments application that was reported in a prior finalizing comment 3(d)(6)–1 as relating to EGRRCPA generally calendar year.123 Thus, the final rule proposed. expressed support for the Bureau’s allows a financial institution to use the As the Bureau explained in the 2018 implementation of section 104(a) of the same NULI for a partially exempt HMDA Rule, the EGRRCPA does not EGRRCPA and did not suggest any transaction in its 2021 loan/application specify the date as of which an insured changes to the proposed regulation text register that the institution used for a depository institution’s two most recent and commentary relating to the partial different partially exempt transaction in CRA examinations must be assessed for exemptions.125 For the reasons stated its 2020 loan/application register. purposes of the exception in HMDA below, the Bureau is now finalizing the Because final action on an application section 304(i)(3). In the 2018 HMDA proposed amendments to § 1003.4(a) may be taken in a different year than the Rule, the Bureau interpreted HMDA relating to the partial exemptions as year in which a NULI is assigned (for section 304(i)(3) to require that this proposed.126 example, for applications received late assessment be made as of December 31 4(a)(1)(i) in the year), insured depository of the preceding calendar year. This institutions and insured credit unions timing is consistent with the timing for Section 1003.4(a)(1)(i) generally may opt not to reassign NULIs that they assessing Regulation C’s asset-size requires a financial institution to assign have assigned previously to ensure all threshold and requirement that a and report a ULI for the covered loan or NULIs included in their annual loan/ financial institution have a home or application that can be used to identify application register are unique within branch office located in a Metropolitan and retrieve the covered loan or that annual loan/application register. Statistical Area (MSA), which are both application file. As explained in the The Bureau recognizes that some assessed as of the preceding December 2018 HMDA Rule and the section-by- insured depository institutions and 31.124 It also ensures that financial section analysis of § 1003.3(d)(5) above, insured credit unions may prefer to institutions can determine before they a financial institution is not required to report a ULI for partially exempt begin collecting information in any assign and report a ULI for a partially transactions even if they are not given calendar year whether they are exempt transaction if it instead assigns required to do so. As explained in the eligible for a partial exemption for and reports a NULI. The Bureau 2018 HMDA Rule and in the section-by- information collected for certain proposed amendments to section section analysis of § 1003.3(d)(4) above transactions in that year. Section 4(a)(1)(i) and comments 4(a)(1)(i)–3, –4, and of § 1003.4(a)(1)(i) below, voluntary 1003.3(d)(6) incorporates this and –6 relating to the NULI. Only one reporting of ULIs for partially exempt interpretation into Regulation C. commenter, a national trade association, transactions is permissible under the Comment 3(d)(6)–1 explains that the specifically addressed the proposed EGRRCPA, and no NULI is required if preceding December 31 means the amendments relating to the NULI, and a ULI is provided. December 31 preceding the current it expressed support. For the reasons calendar year. It includes the same discussed below, the Bureau is 3(d)(6) example that was provided in the 2018 finalizing § 1003.4(a)(1)(i) and Notwithstanding the EGRRCPA’s HMDA Rule to illustrate how the comments 4(a)(1)(i)–3, –4, and –6 as partial exemptions, new HMDA section exception works, with minor wording proposed. 304(i)(3) provides that an insured changes for clarity. To incorporate the NULI into depository institution shall comply with Regulation C, the final rule amends Section 1003.4 Compilation of HMDA section 304(b)(5) and (6) if the § 1003.4(a)(1)(i) to indicate that, for a Reportable Data insured depository institution has partially exempt transaction under received a rating of ‘‘needs to improve 4(a) Data Format and Itemization § 1003.3(d), the data collected shall record of meeting community credit Section 1003.4(a) requires financial include either a ULI or a NULI as needs’’ during each of its two most institutions to collect specific data about described in § 1003.3(d)(5), and that a recent examinations or a rating of covered loans, applications for covered financial institution does not need to ‘‘substantial noncompliance in meeting loans, and purchases of covered loans. assign and report a ULI for a partially community credit needs’’ on its most The EGRRCPA provides partial exempt transaction for which a NULI is recent examination under section exemptions from this requirement for assigned and reported under 807(b)(2) of the CRA. To implement this certain transactions of insured § 1003.3(d). provision, proposed § 1003.3(d)(6) depository institutions and insured The final rule also amends comment provided that § 1003.3(d)(2) and (3) do credit unions. To conform to the 4(a)(1)(i)–3 to indicate that the not apply to an insured depository EGRRCPA, the Bureau proposed to requirement to report the same ULI that institution that, as of the preceding amend the introductory paragraph of was previously assigned or reported for December 31, had received a rating of § 1003.4(a) to indicate that the purchased covered loans does not apply ‘‘needs to improve record of meeting requirement to collect the data if the purchase of the covered loan is a community credit needs’’ during each of identified in § 1003.4(a) is applicable its two most recent examinations or a except as specified in proposed 125 For a more detailed description of the rating of ‘‘substantial noncompliance in § 1003.3(d), which would implement comments received relating to the proposed meeting community credit needs’’ on its amendments implementing the EGRRCPA, see the the new partial exemptions. The Bureau section-by-section analysis of § 1003.3(d) above. most recent examination under section 126 The final rule also includes one technical 124 12 CFR 1003.2(g)(1)(i) and (ii) and (g)(2)(i); correction to the fourth sentence of comment 123 83 FR 45325, 45330 (Sept. 7, 2018). comment 2(g)–1. 4(a)(8)(i)–9.

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partially exempt transaction under or closed for incompleteness), the will assist financial institutions in § 1003.3(d). Because the partial institution may treat that request as the applying comment 4(a)(9)–2 to partially exemptions are only available to insured continuation of the earlier transaction exempt transactions. depository institutions that are not using the same ULI or as a new 4(a)(9)(i) disqualified by their CRA examination transaction with a new ULI. The Bureau histories and insured credit unions for believes that it is appropriate to apply Section 1003.4(a)(9)(i) generally certain transactions as set forth in the same approach with respect to requires a financial institution to report § 1003.3(d), it is possible that a financial NULIs and proposed to amend comment the property address. To implement the institution’s purchase of a covered loan 4(a)(1)(ii)–3 to reference both ULIs and EGRRCPA’s partial exemptions, the that was partially exempt when NULIs. Only one commenter, a national Bureau proposed to amend comment originated would not be a partially trade association, specifically addressed 4(a)(9)(i)–1 to clarify that the exempt transaction and that the the proposed amendments relating to requirement to report property address purchasing financial institution would the NULI, and it expressed support for does not apply to partially exempt therefore need to assign a ULI. the NULI modifications generally. transactions under § 1003.3(d). The Therefore, the final rule amends The Bureau is finalizing comment Bureau received no comments on the comment 4(a)(1)(i)–3 to clarify that a 4(a)(1)(ii)–3 as proposed. proposed amendment and is finalizing financial institution that purchases a comment 4(a)(9)(i)–1 as proposed. 4(a)(9) covered loan and is ineligible for a 4(a)(12) partial exemption with respect to the Section 1003.4(a)(9) generally requires purchased covered loan must assign a a financial institution to report the Section 1003.4(a)(12) generally ULI and record and submit it in its loan/ property address of the location of the requires a financial institution to report application register pursuant to property securing a covered loan or, in the rate spread for covered loans and § 1003.5(a)(1) if the financial institution the case of an application, proposed to applications that are approved but not that originated the loan did not assign secure a covered loan (property accepted, and that are subject to a ULI. Consistent with the 2018 HMDA address), as well as the State, the Regulation Z, 12 CFR part 1026, other Rule, the final rule amends comment county, and in some cases the census than assumptions, purchased covered 4(a)(1)(i)–3 to clarify that this may tract of the property if the property is loans, and reverse mortgages. To occur, for example, if the loan was located in an MSA or Metropolitan implement the EGRRCPA’s partial assigned a NULI under § 1003.3(d)(5) Division (MD) in which the financial exemptions, the Bureau proposed to rather than a ULI by the loan originator. institution has a home or branch office, amend comment 4(a)(12)–7 to provide The final rule also amends comment or if the institution is subject to that § 1003.4(a)(12) does not apply to 4(a)(1)(i)–4 to clarify the example § 1003.4(e). Comment 4(a)(9)–2 transactions that are partially exempt provided in that comment of how ULIs addresses situations involving multiple under proposed § 1003.3(d). The Bureau are assigned if a financial institution properties with more than one property received no comments on the proposed reconsiders an application that was taken as security. The comment amendment and is finalizing comment reported in a prior calendar year. The explains that, if an institution is 4(a)(12)–7 as proposed. amendments clarify that the example required to report specific information 4(a)(15) assumes that the financial institution about the property identified in reported a ULI rather than a NULI in § 1003.4(a)(9) by another section of Section 1003.4(a)(15) generally 2020 for the initial denied application Regulation C such as, for example, requires financial institutions to report and that the financial institution then § 1003.4(a)(29) or (30), the institution the credit score or scores relied on in made an origination that is not partially reports the information that relates to making the credit decision and exempt when it reconsidered in 2021 the property identified in § 1003.4(a)(9). information about the scoring model the previously denied application. The Bureau proposed to amend used to generate each score. To The final rule also adds a new comment 4(a)(9)–2 to clarify that, in this implement the EGRRCPA’s partial comment 4(a)(1)(i)–6 explaining that, for circumstance, if the transaction is exemptions, the Bureau proposed to a partially exempt transaction under partially exempt under § 1003.3(d) and amend comment 4(a)(15)–1 to clarify § 1003.3(d), a financial institution may no data are reported pursuant to that the requirement to report the credit report a ULI or a NULI. The comment § 1003.4(a)(9), the institution reports the score or scores relied on in making the cross-references § 1003.3(d)(5) and information that relates to the property credit decision and information about comments 3(d)(5)–1 and –2 for guidance that the institution would have the scoring model used to generate each on the NULI. The Bureau believes that identified in § 1003.4(a)(9) if the score does not apply to transactions that these changes will help clarify financial transaction were not partially exempt. are partially exempt under proposed institutions’ responsibilities in assigning This would mean that, for a partially § 1003.3(d). The Bureau received no identifiers to partially exempt exempt transaction in which more than comments on the proposed amendment transactions. one property is taken as security and no and is finalizing comment 4(a)(15)–1 as data are reported under § 1003.4(a)(9), a proposed. 4(a)(1)(ii) financial institution should choose one Section 1003.4(a)(1)(ii) generally of the properties taken as a security that 4(a)(16) requires financial institutions to collect contains a dwelling and provide Section 1003.4(a)(16) generally the date the application was received or information about that property if the requires financial institutions to report the date shown on the application form. institution is required to report specific the principal reason(s) for denial of an Current comment 4(a)(1)(ii)–3 explains information about the property application. To implement the that, if, within the same calendar year, identified in § 1003.4(a)(9) by one or EGRRCPA’s partial exemptions, the an applicant asks a financial institution more other sections of Regulation C. The Bureau proposed to amend comment to reinstate a counteroffer that the Bureau received no comments on the 4(a)(16)–4 to clarify that the requirement applicant previously did not accept (or proposed amendment and is finalizing to report the principal reason(s) for asks the institution to reconsider an comment 4(a)(9)–2 as proposed. The denial of an application does not apply application that was denied, withdrawn, Bureau believes that this amendment to transactions that are partially exempt

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under proposed § 1003.3(d). The Bureau for covered loans subject to the 4(a)(24) received no comments on the proposed disclosure requirements in Regulation Z Section 1003.4(a)(24) generally amendment and is finalizing comment § 1026.19(f), the amount of lender requires financial institutions to report 4(a)(16)–4 as proposed. credits. To implement the EGRRCPA’s the ratio of the total amount of debt 4(a)(17) partial exemptions, the Bureau secured by the property to the value of proposed to amend comment 4(a)(20)–1 the property relied on in making the Section 1003.4(a)(17) generally to clarify that the requirement to report credit decision (combined loan-to-value requires that, for covered loans subject lender credits does not apply to ratio). To implement the EGRRCPA’s to Regulation Z § 1026.43(c), a financial transactions that are partially exempt partial exemptions, the Bureau institution shall report the amount of under proposed § 1003.3(d). The Bureau proposed to amend comment 4(a)(24)–1 total loan costs if a disclosure is received no comments on the proposed to clarify that the requirement to report provided for the covered loan pursuant amendment and is finalizing comment the combined loan-to-value ratio does to Regulation Z § 1026.19(f), or the total 4(a)(20)–1 as proposed. not apply to transactions that are points and fees charged in connection partially exempt under proposed with the covered loan if the covered 4(a)(21) § 1003.3(d). The Bureau received no loan is not subject to the disclosure comments on the proposed amendment Section 1003.4(a)(21) generally requirements in Regulation Z and is finalizing comment 4(a)(24)–1 as requires financial institutions to report § 1026.19(f). To implement the proposed. EGRRCPA’s partial exemptions, the the interest rate applicable to the Bureau proposed to amend comments approved application or to the covered 4(a)(25) 4(a)(17)(i)–1 and (ii)–1 to clarify that the loan at closing or account opening. To Section 1003.4(a)(25) generally requirement to report total loan costs or implement the EGRRCPA’s partial requires financial institutions to report total points and fees, as applicable, does exemptions, the Bureau proposed to the scheduled number of months after not apply to transactions that are amend comment 4(a)(21)–1 to clarify which the legal obligation will mature partially exempt under proposed that the requirement to report interest or terminate or would have matured or § 1003.3(d). The Bureau received no rate does not apply to transactions that terminated (loan term). To implement comments on the proposed amendments are partially exempt under proposed the EGRRCPA’s partial exemptions, the and is finalizing comments 4(a)(17)(i)–1 § 1003.3(d). The Bureau received no Bureau proposed to amend comment and (ii)–1 as proposed. comments on the proposed amendment 4(a)(25)–5 to clarify that the requirement 4(a)(18) and is finalizing comment 4(a)(21)–1 as to report loan term does not apply to proposed. transactions that are partially exempt Section 1003.4(a)(18) generally under proposed § 1003.3(d). The Bureau requires financial institutions to report, 4(a)(22) received no comments on the proposed for covered loans subject to the amendment and is finalizing comment Section 1003.4(a)(22) generally disclosure requirements in Regulation Z 4(a)(25)–5 as proposed. § 1026.19(f), the total of all borrower- requires financial institutions to report paid origination charges. To implement the term in months of any prepayment 4(a)(26) the EGRRCPA’s partial exemptions, the penalty for covered loans or Section 1003.4(a)(26) generally Bureau proposed to amend comment applications subject to Regulation Z, 12 requires financial institutions to report 4(a)(18)–1 to clarify that the requirement CFR part 1026. To implement the the number of months, or proposed to report borrower-paid origination EGRRCPA’s partial exemptions, the number of months in the case of an charges does not apply to transactions Bureau proposed to amend comment application, from the closing or account that are partially exempt under 4(a)(22)–1 to clarify that the requirement opening until the first date the interest proposed § 1003.3(d). The Bureau to report the term of any prepayment rate may change. To implement the received no comments on the proposed penalty does not apply to transactions EGRRCPA’s partial exemptions, the amendment and is finalizing comment that are partially exempt under Bureau proposed to amend comment 4(a)(18)–1 as proposed. proposed § 1003.3(d). The Bureau 4(a)(26)–1 to clarify that the requirement received no comments on the proposed to report the number of months, or 4(a)(19) amendment and is finalizing comment proposed number of months in the case Section 1003.4(a)(19) generally 4(a)(22)–1 as proposed. of an application, from closing or requires financial institutions to report, account opening until the first date the for covered loans subject to the 4(a)(23) interest rate may change does not apply disclosure requirements in Regulation Z Section 1003.4(a)(23) generally to transactions that are partially exempt § 1026.19(f), the points paid to the under proposed § 1003.3(d). The Bureau requires financial institutions to report creditor to reduce the interest rate. To received no comments on the proposed the ratio of the applicant’s or borrower’s implement the EGRRCPA’s partial amendment and is finalizing comment total monthly debt to the total monthly exemptions, the Bureau proposed to 4(a)(26)–1 as proposed. amend comment 4(a)(19)–1 to clarify income relied on in making the credit 4(a)(27) that the requirement to report discount decision (debt-to-income ratio). To points does not apply to transactions implement the EGRRCPA’s partial Section 1003.4(a)(27) generally that are partially exempt under exemptions, the Bureau proposed to requires financial institutions to report proposed § 1003.3(d). The Bureau amend comment 4(a)(23)–1 to clarify contractual features that would allow received no comments on the proposed that the requirement to report the debt- payments other than fully amortizing amendment and is finalizing comment to-income ratio does not apply to payments. To implement the 4(a)(19)–1 as proposed. transactions that are partially exempt EGRRCPA’s partial exemptions, the under proposed § 1003.3(d). The Bureau Bureau proposed to amend comment 4(a)(20) received no comments on the proposed 4(a)(27)–1 to clarify that the requirement Section 1003.4(a)(20) generally amendment and is finalizing comment to report contractual features that would requires financial institutions to report, 4(a)(23)–1 as proposed. allow payments other than fully

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amortizing payments does not apply to 4(a)(32) received no comments on the proposed transactions that are partially exempt Section 1003.4(a)(32) generally amendment and is finalizing comment under proposed § 1003.3(d). The Bureau requires financial institutions to report 4(a)(34)–1 as proposed. received no comments on the proposed information on the number of 4(a)(35) amendment and is finalizing comment individual dwelling units in 4(a)(27)–1 as proposed. multifamily dwellings that are income- Section 1003.4(a)(35) generally 4(a)(28) restricted pursuant to Federal, State, or requires financial institutions to report local affordable housing programs. To the name of the automated underwriting Section 1003.4(a)(28) generally implement the EGRRCPA’s partial system (AUS) used by the financial requires financial institutions to report exemptions, the Bureau proposed to institution to evaluate the application the value of the property securing the amend comment 4(a)(32)–6 to clarify and the result generated by that AUS. covered loan or, in the case of an that the requirement to report To implement the EGRRCPA’s partial application, proposed to secure the information on the number of exemptions, the Bureau proposed to covered loan relied on in making the individual dwelling units in credit decision. To implement the amend comment 4(a)(35)–1 to clarify multifamily dwellings that are income- that the requirement for financial EGRRCPA’s partial exemptions, the restricted pursuant to Federal, State, or Bureau proposed to amend comment institutions to report the name of the local affordable housing programs does AUS used to evaluate the application 4(a)(28)–1 to clarify that the requirement not apply to transactions that are and the result generated by that AUS to report the property value relied on in partially exempt under proposed does not apply to transactions that are making the credit decision does not § 1003.3(d). The Bureau received no partially exempt under proposed apply to transactions that are partially comments on the proposed amendment exempt under proposed § 1003.3(d). The and is finalizing comment 4(a)(32)–6 as § 1003.3(d). The Bureau received no Bureau received no comments on the proposed. comments on the proposed amendment proposed amendment and is finalizing and is finalizing comment 4(a)(35)–1 as comment 4(a)(28)–1 as proposed. 4(a)(33) proposed. 4(a)(29) Section 1003.4(a)(33) generally 4(a)(37) requires financial institutions to report Section 1003.4(a)(29) generally whether the applicant or borrower Section 1003.4(a)(37) requires requires financial institutions to report submitted the application for the financial institutions to identify whether a covered loan or application is covered loan directly to the financial whether the covered loan or the or would have been secured by a institution and whether the obligation application is for an open-end line of manufactured home and land or by a arising from the covered loan was, or in credit. To implement the EGRRCPA’s manufactured home and not land. To the case of an application, would have partial exemptions, the Bureau implement the EGRRCPA’s partial been initially payable to the financial proposed to amend comment 4(a)(37)–1 exemptions, the Bureau proposed to institution. To implement the to clarify that the requirement for amend comment 4(a)(29)–4 to clarify EGRRCPA’s partial exemptions, the financial institutions to identify that the requirement to report whether Bureau proposed to amend comments whether the covered loan or the a covered loan or application is or 4(a)(33)(i)–1 and (33)(ii)–1 to clarify that application is for an open-end line of would have been secured by a the requirement for financial manufactured home and land or by a institutions to report whether the credit does not apply to transactions manufactured home and not land does applicant or borrower submitted the that are partially exempt under not apply to transactions that are application for the covered loan directly proposed § 1003.3(d). The Bureau partially exempt under proposed to the financial institution and whether received no comments on the proposed § 1003.3(d). The Bureau received no the obligation arising from the covered amendment and is finalizing comment comments on the proposed amendment loan was, or in the case of an 4(a)(37)–1 as proposed. and is finalizing comment 4(a)(29)–4 as application, would have been initially 4(a)(38) proposed. payable to the financial institution, does 4(a)(30) not apply to transactions that are Section 1003.4(a)(38) requires partially exempt under proposed financial institutions to identify Section 1003.4(a)(30) generally § 1003.3(d). The Bureau received no whether the covered loan is, or the requires financial institutions to report comments on the proposed amendments application is for a covered loan that whether the applicant or borrower owns and is finalizing comments 4(a)(33)(i)–1 will be, made primarily for a business the land on which a manufactured home and (33)(ii)–1 as proposed. or commercial purpose. To implement is or will be located through a direct or 4(a)(34) the EGRRCPA’s partial exemptions, the indirect ownership interest or leases the Bureau proposed to amend comment land through a paid or unpaid leasehold Section 1003.4(a)(34) generally 4(a)(38)–1 to clarify that the requirement interest. To implement the EGRRCPA’s requires financial institutions to report for financial institutions to identify partial exemptions, the Bureau the unique identifier assigned by the proposed to amend comment 4(a)(30)–6 Nationwide Mortgage Licensing System whether the covered loan is, or the to clarify that the requirement to report and Registry (NMLSR ID) for the application is for a covered loan that ownership or leasing information on the mortgage loan originator. To implement will be, made primarily for a business manufactured home land property the EGRRCPA’s partial exemptions, the or commercial purpose does not apply interest does not apply to transactions Bureau proposed to amend comment to transactions that are partially exempt that are partially exempt under 4(a)(34)–1 to clarify that the requirement under proposed § 1003.3(d). The Bureau proposed § 1003.3(d). The Bureau for financial institutions to report the received no comments on the proposed received no comments on the proposed NMLSR ID does not apply to amendment and is finalizing comment amendment and is finalizing comment transactions that are partially exempt 4(a)(38)–1 as proposed. 4(a)(30)–6 as proposed. under proposed § 1003.3(d). The Bureau

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4(e) Data Reporting for Banks and proposed amendments to incorporate discussion below considers the benefits, Savings Associations That Are Required the EGRRCPA amendments into costs, and impacts of the following To Report Data on Small Business, Regulation C, one State trade association major provisions of the final rule to: Small Farm, and Community expressed support for the clarifications 1. Incorporate the interpretations and Development Lending Under CRA regarding the effective date of the partial procedures from the 2018 HMDA Rule Section 1003.4(e) provides that banks exemptions. into Regulation C and further and savings associations that are The Bureau proposed that the implement section 104(a) of the required to report data on small temporary threshold of 500 open-end EGRRCPA, which grants eligible business, small farm, and community lines of credit for institutional and financial institutions partial exemptions development lending under regulations transactional coverage would take effect from HMDA’s requirements for certain that implement the CRA shall also on January 1, 2020. This effective date transactions; and 2. Extend for a period of two years, collect the information required by corresponds to the date when the initial specifically calendar years 2020 and § 1003.4(a)(9) for property located temporary open-end coverage threshold 2021, the current data reporting outside MSAs and Metropolitan established in the 2017 HMDA Rule is threshold of 500 open-end lines of Divisions (MDs) in which the institution otherwise set to expire. The Bureau did credit in each of the two preceding has a home or branch office, or outside not receive any comments on the calendar years. any MSA. Section 1003.4(e) requires proposed effective date for the temporary threshold of 500 open-end With respect to each major provision, collection only of the information the discussion considers the benefits, required by § 1003.4(a)(9)(ii) regarding lines of credit. The Bureau is finalizing these effective dates as proposed. costs, and impacts to consumers and the location of the property by State, covered persons. The discussion also county, and census tract because VII. Dodd-Frank Act Section 1022(b) addresses comments the Bureau § 1003.4(a)(9)(i) itself requires collection Analysis received on the proposed Dodd-Frank of property address regardless of The Bureau has considered the Act section 1022(b) analysis, as well as whether the property is located in an 127 potential benefits, costs, and impacts of certain other comments on the benefits MSA or MD. The Bureau proposed to the final rule.129 In developing the final or costs of the relevant provisions of the amend § 1003.4(e) by changing the rule, the Bureau has consulted with or May 2019 Proposal that the Bureau is cross-reference from § 1003.4(a)(9) to offered to consult with the prudential finalizing in this rule, when doing so is § 1003.4(a)(9)(ii) to clarify that regulators (the Board, the FDIC, the helpful to understanding the Dodd- § 1003.4(e) only relates to the NCUA, and the OCC), the Department of Frank Act section 1022(b) analysis. information required by Agriculture, the Department of Housing Some comments that mentioned the § 1003.4(a)(9)(ii) without making any and Urban Development (HUD), the benefits or costs of a provision of the substantive changes. The Bureau Department of Justice, the Department May 2019 Proposal in the context of received no comments on the proposed of the Treasury, the Department of commenting on the merits of that amendment and is finalizing § 1003.4(e) Veterans Affairs, the Federal Housing provision are addressed in the relevant as proposed. The Bureau believes that Finance Agency, the Federal Trade section-by-section analysis, above. In this clarification will assist financial Commission, and the Securities and this respect, the Bureau’s discussion institutions and other stakeholders by Exchange Commission regarding, among under Dodd-Frank Act section 1022(b) making it clear that § 1003.4(e) does not other things, consistency with any is not limited to this discussion in part require reporting of property address prudential, market, or systemic VII of the final notice. information required by § 1003.4(a)(9)(i) objectives administered by such when a partial exemption applies. agencies. B. Baselines for Consideration of Costs and Benefits VI. Effective Dates As discussed in greater detail elsewhere throughout this The Bureau has discretion in any The Bureau proposed that supplementary information, in this amendments to incorporate the rulemaking to choose an appropriate rulemaking the Bureau is incorporating interpretations and procedures from the scope of analysis with respect to into Regulation C, which implements 2018 HMDA Rule into Regulation C and potential benefits, costs, and impacts further implement section 104(a) of the HMDA, the interpretations and and an appropriate baseline. The two EGRRCPA would take effect on January procedures from the 2018 HMDA Rule sets of provisions included in this final 1, 2020. The Bureau explained in the and implementing further section 104(a) rule are distinct from one another and May 2019 Proposal that this would of the EGRRCPA. The Bureau is also hence the Bureau has chosen a different allow stakeholders to benefit without amending Regulation C, effective baseline for each of the provisions: (1) significant delay from the additional January 1, 2020, to extend for a period To avoid double-counting the impacts certainty and clarity that the Regulation of two additional years the current data assessed for each set of provisions, and C amendments will provide regarding reporting threshold of 500 open-end (2) to provide the clearest exposition of the EGRRCPA partial exemptions that lines of credit. the effects of the Bureau’s actions in this final rule and in implementing the are already in effect.128 Regarding the A. Provisions To Be Analyzed EGRRCPA in the 2018 HMDA Rule. The final rule contains regulatory or 127 When the Board added § 1003.4(e) to However, summed together, the impact Regulation C, the property address information that commentary language (provisions). The estimates for the two sets of provisions is now specified in § 1003.4(a)(9)(i) was not yet as analyzed in this part form the total required. See 80 FR 66128, 66186 (Oct. 28, 2015) 129 Specifically, section 1022(b)(2)(A) of the estimated impact for the final rule (noting that § 1003.4(e) predates the 2015 HMDA Dodd-Frank Act calls for the Bureau to consider the Rule, which added the property address potential benefits and costs of a regulation to corresponding to a baseline where the requirement now in § 1003.4(a)(9)(i)). consumers and covered persons, including the 2015 HMDA Rule and the 2017 HMDA 128 As noted, many of the amendments merely potential reduction of access by consumers to Rule were in effect prior to the incorporate into Regulation C provisions of the consumer financial products or services; the impact EGRRCPA. EGRRCPA and the 2018 HMDA Rule that are on depository institutions and credit unions with already in effect. Compliance with such $10 billion or less in total assets as described in For purposes of this analysis, we refer amendments prior to January 1, 2020 does not section 1026 of the Dodd-Frank Act; and the impact to the first set of provisions in the final violate Regulation C. on consumers in rural areas. rule as those that incorporate the

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interpretations and procedures from the calendar years for two more years purposes. Therefore, the benefits of 2018 HMDA Rule into Regulation C and (specifically, 2020 and 2021). these provisions to covered persons are further implement section 104(a) of the Meanwhile, the EGRRCPA’s partial mainly the reduction of the costs to EGRRCPA, which grants eligible exemption for open-end lines of credit covered persons relative to the financial institutions partial exemptions of eligible insured depository compliance costs the covered persons from HMDA’s requirements for certain institutions and insured credit unions would have to incur under each transactions. In the analysis under took effect on May 24, 2018. The baseline scenario. section 1022(b) of the Dodd-Frank Act temporary increase in the open-end The Bureau’s 2015 HMDA Rule, as for the 2018 HMDA Rule, the Bureau coverage threshold adopted in the 2017 adopted a post-statute baseline to assess HMDA Rule would automatically expire well as the 2014 proposed rule for the the impact of the 2018 HMDA Rule without this current or other rulemaking 2015 HMDA Rule and the material because that rule merely interprets and effort and some insured depository provided to the Small Business Review provides guidance regarding what institutions and insured credit unions Panel leading to the 2015 HMDA Rule, Congress required in section 104(a) of are now eligible for a partial exemption presented a basic framework of the EGRRCPA and provides procedures for open-end lines of credit. Therefore, analyzing compliance costs for HMDA related to applying those for the consideration of benefits and reporting, including ongoing costs and requirements.130 By contrast, the Bureau costs of this provision the Bureau is one-time costs for financial institutions. is using its legislative rulemaking adopting a baseline in which the open- Based on the Bureau’s study of the authority to amend Regulation C to end coverage threshold starting in year HMDA compliance process and costs, implement the statutory provisions in 2020 is reset at 100 open-end lines of with the help of additional information this rulemaking. For the consideration credit in each of the two preceding gathered and verified through the Small of benefits and costs of the first set of calendar years with some depository Business Review Panel process, the provisions in this final rule, the Bureau institutions and credit unions partially Bureau classified the operational is therefore using a pre-statute baseline, exempt under the EGRRCPA. activities that financial institutions use i.e., evaluating the benefits, costs, and C. Coverage of the Final Rule for HMDA data collection and reporting impacts of the provisions implementing into 18 discrete compliance ‘‘tasks’’ Both sets of provisions apply to the EGRRCPA as compared to the state which can be grouped into four certain financial institutions and relieve of the world prior to when the ‘‘primary tasks.’’ 131 Recognizing that these financial institutions from EGRRCPA took effect. The Bureau the cost per loan of complying with believes such a pre-statute baseline HMDA’s requirements for either all or certain data points regarding closed-end HMDA’s requirements differs by provides the public and the Bureau a financial institution, the Bureau further more complete picture of the impacts of mortgage loans or open-end lines of credit that they originate or purchase, or identified seven key dimensions of the EGRRCPA changes that were compliance operations that were implemented by the Bureau’s 2018 for which they receive applications, as described further in each section below. significant drivers of compliance costs, HMDA Rule and further implemented including the reporting system used, the by the relevant provisions in this final In short, the implementation of the EGRRCPA would affect certain insured degree of system integration, the degree rule. of system automation, the compliance For the purposes of this analysis, we depository institutions and insured credit unions with origination volumes program, and the tools for geocoding, refer to the second set of provisions in performing completeness checks, and this final rule as those that extend for below certain thresholds, while the rest editing. The Bureau found that financial two years, until January 1, 2022, the of the final rule would affect all institutions tended to have similar current temporary open-end coverage financial institutions below certain levels of complexity in compliance threshold of 500 open-end lines of thresholds and not just insured credit in each of the two preceding depository institutions and insured operations across all seven dimensions. calendar years. In the 2017 HMDA Rule, credit unions. For example, if a given financial the Bureau granted two-year temporary D. Basic Approach of the Bureau’s institution had less system integration, relief (specifically, for 2018 and 2019) Consideration of Benefits and Costs and then it tended to use less automation for financial institutions that did not Data Limitations and less complex tools for geocoding. Financial institutions generally did not originate at least 500 open-end lines of This discussion relies on data that the credit in each of the two preceding use less complex approaches on one Bureau has obtained from industry, dimension and more complex calendar years. The 2017 HMDA Rule other regulatory agencies, and publicly provides that, absent any future approaches on another. The small entity available sources. However, as representatives validated this rulemaking, the open-end coverage discussed further below, the Bureau’s perspective during the Small Business threshold will revert to 100 open-end ability to fully quantify the potential Review Panel meeting convened under lines of credit, as in the 2015 HMDA costs, benefits, and impacts of this final Rule, starting in 2020. This final rule rule is limited in some instances by a 131 extends the current temporary coverage scarcity of necessary data. These tasks include: (1) Data collection: threshold of 500 open-end lines of Transcribing data, resolving reportability questions, 1. Benefits to Covered Persons and transferring data to HMDA Management System credit in each of the two preceding (HMS); (2) Reporting and resubmission: Geocoding, This final rule relates to the financial standard annual edit and internal checks, 130 The Bureau has discretion in any rulemaking institutions, transactions, and data researching questions, resolving question responses, to choose an appropriate scope of analysis with checking post-submission edits, filing post- respect to potential benefits, costs, and impacts and points that are exempted or excluded submission documents, creating modified loan/ an appropriate baseline. In the 2018 HMDA Rule, from HMDA’s reporting requirements. application register, distributing modified loan/ the Bureau noted that it anticipated an upcoming Both sets of provisions in this final rule application register, distributing disclosure notice-and-comment rulemaking and expected that are designed to reduce the regulatory statement, and using vendor HMS software; (3) the accompanying analysis under Dodd-Frank Act Compliance and internal audits: Training, internal section 1022(b) would assess the benefits, costs, and burdens on covered persons while audits, and external audits; and (4) HMDA-related impacts of the statute as well as the implementing minimizing the impact on the ability of exams: Examination preparation and examination regulation. 83 FR 45325, 45332 n.57 (Sept. 7, 2018). HMDA data to serve the statute’s assistance.

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the Small Business Regulatory representative tiers of financial denotes a representative financial Enforcement Fairness Act.132 institutions. In particular, to capture the institution with a moderate level of The Bureau realizes that costs vary by relationships between operational complexity, and tier 3 denotes a institution due to many factors, such as complexity and compliance cost, the representative financial institution with size, operational structure, and product Bureau used these seven dimensions to the lowest level of complexity. For each complexity, and that this variance exists define three broadly representative tier, the Bureau developed a separate set on a continuum that is impossible to financial institutions according to the of assumptions and cost estimates. fully represent. To consider costs in a overall level of complexity of their Table 1 below provides an overview practical and meaningful way, in the compliance operations. Tier 1 denotes a of all three representative tiers across 2015 HMDA Rule the Bureau adopted representative financial institution with the seven dimensions of compliance an approach that focused on three the highest level of complexity, tier 2 operations: 133

TABLE 1—TYPES OF HMDA REPORTERS 1

Tier 3 FIs tend to . . . Tier 2 FIs tend to . . . Tier 1 FIs tend to . . .

Systems ...... Enter data in Excel loan/application Use LOS and HMS; Submit data via Use multiple LOS, central SoR, register Formatting Tool. the HMDA Platform. HMS; Submit data via the HMDA Platform. Integration ...... (None) ...... Have forward integration (LOS to Have backward and forward integra- HMS). tion; Integration with public HMDA APIs. Automation ...... Manually enter data into loan/appli- loan/application register file produced loan/application register file produced cation register Formatting Tool; re- by HMS; review edits in HMS and by HMS; high automation com- view and verify edits in the HMDA HMDA platform; verify edits via piling file and reviewing edits; Platform. HMDA Platform. verify edits via the HMDA platform. Geocoding ...... Use FFIEC tool (manual) ...... Use batch processing ...... Use batch processing with multiple sources. Completeness Checks ..... Check in HMDA Platform only ...... Use LOS, which includes complete- Use multiple stages of checks. ness checks. Edits ...... Use FFIEC Edits only ...... Use FFIEC and customized edits ..... Use FFIEC and customized edits run multiple times. Compliance Program ...... Have a joint compliance and audit Have basic internal and external ac- Have in-depth accuracy and fair office. curacy audit. lending audit. 1 FI is ‘‘financial institution’’; LOS is ‘‘Loan Origination System’’; HMS is ‘‘HMDA Data Management Software’’; SoR is ‘‘System of Record.’’

For a representative institution in align the partially exempt data points and noted that compliance can be each tier, in the 2015 HMDA Rule, the (and data fields used to report these data particularly difficult for smaller Bureau produced a series of estimates of points) with the cost impact analyses institutions with limited staff. A trade the costs of compliance, including the discussed in the impact analyses for the association commented that the ongoing costs that financial institutions 2015 HMDA Rule. The Bureau’s Bureau’s estimates do not account for incurred prior to the implementation of analyses below also take into account the reduction in examination burdens the 2015 HMDA Rule, and the changes the operational improvements that have and the resources diverted to HMDA to the ongoing costs due to the 2015 been implemented by the Bureau compliance from other more productive HMDA Rule. The Bureau further regarding HMDA reporting since the activities. It also asserted that the provided the breakdown of the changes issuance of the 2015 HMDA Rule. The Bureau’s burden analysis did not to the ongoing costs due to each major details of such analyses are contained in properly address data security costs provision in the 2015 HMDA Rule, the following sections addressing the associated with HMDA collection and which includes the changes to the scope two sets of provisions of this final rule. reporting. Another trade association of the institutional coverage, the change The Bureau received a number of suggested that the three-tiered approach to the scope of the transactional comments relating to the benefits to to estimating costs does not seem to coverage, the revisions to the existing covered persons of the May 2019 account for the unique challenges of data points (as before the 2015 HMDA Proposal, which it has considered in adapting business and multifamily Rule) and the addition of new data finalizing this rule. Many industry lending to HMDA regulations and points by the 2015 HMDA Rule. commenters reported that they expend HMDA reporting infrastructure designed For the impact analysis in this final substantial resources on HMDA with single-family consumer mortgage rule, the Bureau is utilizing the cost compliance that could instead be used lending in mind. estimates provided in the 2015 HMDA for other purposes or that they have In their comments, consumer groups, Rule for the representative financial structured their lines of business to civil rights groups, and other nonprofit institution in each of the three tiers, ensure they are not required to report organizations stated that Federal agency with some updates, mainly to reflect the under HMDA. Some cited, for example, fair lending and CRA exams will inflation rate, and in the case of the set the burden of establishing procedures, become more burdensome for Federal of provisions implementing the partial purchasing reporting software, and agencies and the HMDA-exempt lenders exemptions under the EGRRCPA, to training staff to comply with HMDA, since the agencies will now have to ask

132 See Bureau of Consumer Fin. Prot., ‘‘Final files.consumerfinance.gov/f/201407_cfpb_report_ reporting since issuing the 2015 HMDA Rule and Report of the Small Business Review Panel on the hmda_sbrefa.pdf. differs slightly from the original taxonomy in the CFPB’s Proposals Under Consideration for the 133 The Bureau notes this description has taken 2015 HMDA Rule that reflected the technology at Home Mortgage Disclosure Act (HMDA) into account the operational improvements the the time of the study. Rulemaking’’ 22, 37 (Apr. 24, 2014), http:// Bureau has implemented regarding HMDA

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for internal data from the lenders potentially impacted financial estimates thus enables the Bureau to instead of being able to use the HMDA institutions and their total number of calculate the approximate numbers of data. They also noted that smaller- loan/application register records. The impacted institutions in tiers 2 and 3 for volume lenders already benefit from the Bureau used a wide range of data in each set of provisions.135 EGRRCPA’s partial exemptions and conducting this task, including recent Multiplying the impact estimates for stated that almost all of the data that HMDA data,134 Call Reports, and representative financial institutions in such institutions must report under Consumer Credit Panel data. These each tier by the estimated number of HMDA would already need to be analyses were challenging, because no impacted institutions, the Bureau collected to comply with other statutes single data source provided complete arrived at the market-level estimates. like the Truth in Lending Act, to sell coverage of all the financial institutions loans to Fannie Mae or Freddie Mac, or that could be impacted and because 2. Costs to Covered Persons to acquire FHA insurance for loans. A there is varying data quality among the In general, and as discussed in part nonprofit organization that does HMDA- different sources. VII.D.1 above, both sets of provisions in related research commented that it is To perform the aggregation, the this final rule will reduce the ongoing hard to imagine that a bank would not Bureau mapped the potentially operational costs associated with HMDA keep an electronic record of its lending, impacted financial institutions to the reporting for the affected covered even if it were not subject to HMDA three tiers described above. For each of persons. In the interim, it is possible reporting. the provisions analyzed, the Bureau that to adapt to the rule, covered The Bureau has considered these assumed none of the changes would persons may incur certain one-time comments and concludes that they do affect the high-complexity tier 1 costs. Such one-time costs are mostly not undermine the Bureau’s approach or reporters. The Bureau then assigned the related to training and system changes cost parameters used in part VI of the potentially impacted financial in covered persons’ HMDA reporting/ May 2019 Proposal. For example, the institutions to either tier 2 or tier 3. In loan origination systems. Based on the activities that many industry doing so, the Bureau relied on two Bureau’s outreach to industry, however, commenters described as burdensome constraints: (1) The estimated number of the Bureau believes that such one-time in their comments—including scrubbing impacted institutions in tiers 2 and 3, costs are fairly small. Commenters did data, training personnel, and preparing combined, must equal the estimated not indicate that there would be for HMDA-related examinations—are number of impacted institutions for the significant costs to covered persons consistent with and captured by the 18 applicable provision, and (2) the associated with the temporary extension discrete compliance ‘‘tasks’’ that the number of loan/application register of the open-end coverage threshold or Bureau identified through its study of records submitted annually by the the manner in which the Bureau the HMDA compliance process and impacted financial institutions in tiers 2 proposed to implement the EGRRCPA costs in the 2015 HMDA rulemaking. As and 3, combined, must equal the provisions.136 part of its analysis, the Bureau also estimated number of loan/application recognized that costs vary by institution register records for the applicable 3. Benefits to Consumers due to many factors, such as size, provision. As in the 2015 HMDA Rule, Having generated estimates of the operational structure, and product the Bureau assumed for closed-end changes in ongoing costs and one-time complexity, and adopted a tiered reporting that a representative low- costs to covered financial institutions, framework to capture the relationships complexity, tier 3 financial institution the Bureau then can attempt to estimate between operational complexity and has 50 closed-end mortgage loan HMDA the potential pass-through of such cost compliance cost. While some products loan/application register records per reduction from these institutions to are more costly than others to report, the year and a representative tier 2 financial consumers, which could benefit three-tiered framework uses institution has 1,000 closed-end consumers. According to economic representative institutions to capture mortgage loan HMDA loan/application theory, in a perfectly competitive this type of variability and estimate register records per year. Similarly, the market where financial institutions are overall costs of HMDA reporting. In Bureau assumed for open-end reporting profit maximizers, the affected financial estimating compliance costs associated that a representative low-complexity, institutions would pass on to consumers with HMDA reporting through this tier 3 financial institution has 150 open- the marginal, i.e., variable, cost savings framework, the Bureau also recognized end HMDA loan/application register per application or origination, and that much of the information required records per year and a representative absorb the one-time and increased fixed for HMDA reporting is information that tier 2 financial institution has 1,000 costs of complying with the rule. The financial institutions would need to open-end HMDA loan/application Bureau estimated in the 2015 HMDA collect, retain, and secure as part of register records per year. Constraining Rule the impacts on the variable costs their lending process, even if they were the total number of impacted of the representative financial not subject to HMDA reporting. The institutions and the number of impacted institutions in each tier due to various Bureau therefore does not believe that loan/application register records across provisions of that rule. Similarly, the the comments received provide a basis tier 2 and tier 3 to the aggregate for departing from the approach for 135 See supra note 60. analyzing costs and benefits for covered 134 The majority of the analyses in the 1022 136 On the other hand, the set of provisions persons used in part VI of the May 2019 section of the May 2019 Proposal were conducted extending the temporary open-end threshold of 500 Proposal. prior to the official submission deadline of the 2018 for two years will delay for two additional years the The next step of the Bureau’s HMDA data on March 1, 2019, and 2017 was the one-time costs that excluded institutions would most recent year of HMDA data the Bureau used for otherwise incur if the 500 open-end coverage consideration of the reduction of costs the analyses presented in the May 2019 Proposal. threshold were restored to 100 open-end lines of for covered persons involved For this part of the final rule, the Bureau has credit in 2020 absent this final rule. Because (absent aggregating the institution-level supplemented the analyses with the 2018 HMDA any future rulemaking adjusting the permanent estimates of the cost reduction under data as released to the public on August 30, 2019. threshold) this represents merely a delay and not The Bureau notes the market may fluctuate from permanent avoidance of one-time costs of starting each set of provisions up to the market- year to year, and the Bureau’s rulemaking is not to report open-end lines of credit, the Bureau does level. This aggregation required geared towards such transitory changes on an not analyze separately this delaying of one-time estimates of the total number of annual basis but is instead based on larger trends. costs.

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estimates of the pass-through effect from from reporting certain data points for information lenders would report under covered persons to consumers due to certain transactions for some covered HMDA. the provisions under this rule are based persons as provided by the EGRRCPA. Because quantifying and monetizing on the relevant estimates of the changes As a sunshine statute regarding data benefits of HMDA to consumers would to the variable costs in the 2015 HMDA reporting and disclosure, most of the require identifying all possible uses of Rule with some updates. The Bureau benefits of HMDA are realized HMDA data, establishing causal links to notes that the market structure in the indirectly. With less data required to be the resulting public benefits, and then consumer mortgage lending markets collected and reported under HMDA, quantifying the magnitude of these may differ from that of a perfectly the HMDA data available to serve benefits, the Bureau mostly presented competitive market (for instance due to HMDA’s statutory purposes would qualitative analyses regarding HMDA information asymmetry between lenders decline.139 However, to quantify the benefits in the 2015 HMDA Rule. For and borrowers) in which case the pass- reduction of such benefits to consumers instance, quantification would require through to the consumers would most presents substantial challenges. The measuring the impact of increased likely be smaller than the pass-through Bureau sought comment on the transparency on financial institution under the perfect competition magnitude of the loss of HMDA benefits behavior, the need for public and assumption.137 from these changes to the available data private investment, the housing needs of The Bureau requested additional and/or methodologies for measuring communities, the number of financial comments on the potential pass-through these effects in the May 2019 Proposal. institutions potentially engaging in from financial institutions to consumers The Bureau has received a number of discriminatory or predatory behavior, due to the reduction in reporting costs. comments emphasizing the loss of the and the number of consumers currently A trade association commented that it HMDA benefits from decreased being unfairly disadvantaged and the believed that the proposed higher information lenders would report under level of quantifiable damage from such thresholds will move mortgage markets HMDA due to the May 2019 Proposal. disadvantage. Similarly, for the impact to more perfect competition. It For example, a group of 148 local and analyses of this final rule, the Bureau is suggested that institutions that currently national organizations stated that raising unable to readily quantify the loss of manage their origination volumes to reporting thresholds will lead to another some of the HMDA benefits to stay below HMDA reporting thresholds round of abusive and discriminatory consumers with precision, both because will be incentivized to increase lending similar to abuses that occurred the Bureau does not have the data to operations and that, by being able to in the years before the financial crisis. quantify all HMDA benefits and because offer savings on fees and pricing, and by These commenters also stated that the the Bureau is not able to assess being more competitive due to lower general public, researchers, and Federal completely how this final rule will productions costs, smaller banks will be agencies will have an incomplete reduce those benefits. able to enter the mortgage market at picture of lending trends in thousands In light of these data limitations, the more profitable levels. However, this of census tracts and neighborhoods if discussion below generally provides a comment did not provide specific affected institutions no longer report qualitative (not quantitative) estimates that the Bureau can utilize in HMDA data. Additionally, a State consideration of the costs, i.e., the refining the analyses. attorney general stated that the May potential loss of HMDA benefits to consumers from the rule. 4. Cost to Consumers 2019 Proposal failed to fully account for the harms that would be imposed by the HMDA is a sunshine statute. The E. Potential Benefits and Costs to proposal, including the costs to States in Consumers and Covered Persons purposes of HMDA are to provide the losing access to helpful data. However, public with loan data that can be used: none of these commenters provided 1. Overall Summary (i) To help determine whether financial specific quantifiable estimates of the In this section, the Bureau presents a institutions are serving the housing loss of benefits from decreased needs of their communities; (ii) to assist concise, high-level table summarizing the benefits and costs considered in the public officials in distributing public- 139 The changes in this final rule generally either sector investment so as to attract private remainder of the discussion. This table relieve financial institutions from their reporting is not intended to capture all details and investment to areas where it is needed; requirements under Regulation C with respect to and (iii) to assist in identifying possible open-end lines of credit or implement the reduction nuances that are provided both in the discriminatory lending patterns and in the data fields required to be reported for certain rest of the analysis and in the section- transactions of certain financial institutions as enforcing antidiscrimination statutes.138 by-section discussion above. Instead, it provided by the EGRRCPA. The data fields covered provides an overview of the major The provisions in this final rule, as by the EGRRCPA include information about the benefits and costs of the final rule, adopted, would lessen the reporting type of loans and the types of borrowers applying requirements for eligible financial for and being granted credit, which can help including the provisions to be analyzed, determine whether financial institutions are serving the baseline chosen for each set of institutions by either completely the housing needs of their communities and assist relieving them of the obligation to report provisions, the sub-provisions to be in identifying possible discriminatory lending analyzed, the implementation dates of all data points related to open-end lines patterns and enforcing antidiscrimination statutes. of credit for two additional years or by Similarly, extending for two years the temporary the sub-provisions, the annual savings implementing the partial exemptions 500 open-end coverage threshold so that fewer on the operational costs of covered institutions report data on open-end lines of credit persons due to the sub-provision, the would reduce the public information regarding changes to the one-time costs of covered 137 The further the market moves away from a whether financial institutions are serving the needs perfectly competitive market, the smaller the pass- of their communities. To the extent that these data persons due to the sub-provision, and through would be. are used for other purposes, the loss of data could generally how the provisions in the final 138 12 CFR 1003.1(b). result in other costs. rule affect HMDA’s benefits.

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TABLE 2

Changes on Provisions to be Baseline Sub-provision Implementation Savings on annual one time Loss of data analyzed date operational costs costs coverage

Implementation of 2015 and 2017 Partial Exemption Effective May 24, $8.4 M to $13.9 M ..... Negligible .... Partial reporting of EGRRCPA. HMDA Rules. for Closed-end 2018. approximately Mortages. 3,300 reporters with about 531,000 closed- end loans. Partial Exemption Effective, May 24, $7.4 M ...... Negligible .... Partial reporting of for Open-end 2018 but has no approximately Lines of Credit. impact while 600 reporters temporary cov- with 131,000 erage threshold open-end lines of 500 is in of credit. place. Increasing Open- 2015 AND 2017 Increase to 500 for January, 2020 ...... $9.4 M ...... Negligible .... Approximately 680 end Loan Cov- HMDA Rules, 2020 and 2021. reporters with erage Threshold. EGRRPCA. 177,000 open- end lines of credit excluded for 2020 and 2021.

2. Provisions To Implement the or insured credit union originated fewer institutions is about 531,000 per year, EGRRCPA than 500 open-end lines of credit in consisting of about 56 percent of all Scope of the Provisions each of the two preceding calendar reporting institutions, and 63 percent of years, the insured depository institution all depository institutions and credit The final rule incorporates the 2018 or insured credit union is generally unions that reported HMDA data for HMDA Rule into Regulation C and exempt from reporting certain data 2017. further implements the EGRRCPA points on the open-end lines of credit provision that adds partial exemptions The majority of the analyses in part VI that it would have otherwise reported of the May 2019 Proposal were from HMDA’s requirements for certain under HMDA.142 conducted prior to the official insured depository institutions and In part VI of the May 2019 Proposal, insured credit unions.140 With respect the Bureau estimated that, under section submission deadline of the 2018 HMDA to closed-end mortgage loans, HMDA 104(a) of the EGRRCPA, as implemented data on March 1, 2019, and 2017 was section 304(i)(1) as amended by the by the 2018 HMDA Rule and further the most recent year of HMDA data the EGRRCPA provides that, if an insured implemented by the May 2019 Proposal, Bureau used for the analyses in the May depository institution or insured credit approximately 3,300 insured depository 2019 Proposal. For this final rule, the union 141 originated fewer than 500 institutions and insured credit Bureau supplemented the analyses with closed-end mortgage loans in each of the unions 143 are eligible for a partial the 2018 HMDA data, which was two preceding calendar years, the exemption for their covered closed-end released to the public on August 30, insured depository institution or loans and applications, and the total 2019. The 2018 HMDA data reflects that insured credit union is generally exempt number of closed-end mortgage loans about 2,200 reporters used a partial from reporting certain data points on the originated by these partially exempt exemption for closed-end mortgage closed-end mortgage loans that it would loans or open-end lines of credit and have otherwise reported under HMDA. 142 Notwithstanding the new partial exemptions, about 425,000 loan/application register Similarly, with respect to open-end new HMDA section 304(i)(3) provides that an records, including 298,000 originations, lines of credit, HMDA section 304(i)(1) insured depository institution must comply with have one or more data points reported HMDA section 304(b)(5) and (6) if it has received as amended by the EGRRCPA provides a rating of ‘‘needs to improve record of meeting as exempt. It is possible that some of that, if an insured depository institution community credit needs’’ during each of its two reporters, even though eligible for a most recent examinations or a rating of ‘‘substantial partial exemption under the EGRRCPA, 140 The Bureau also considered as an alternative noncompliance in meeting community credit chose to report in full the data points needs’’ on its most recent examination under not incorporating the interpretations and that are exempt under the EGRRCPA. procedures from the 2018 HMDA Rule into section 807(b)(2) of the CRA. Regulation C and not implementing further section 143 To generate this estimate, the Bureau first This may particularly be the case 104(a) of the EGRRCPA. The Bureau believes that identified all depository institutions (including because the EGRRCPA partial this alternative approach would result in increased credit unions) that met all reporting requirements exemptions only went into effect in May costs to covered persons due to a lack of clarity and reported 2017 HMDA data in 2018. From this regarding the relevant statutory and regulatory set of depository institutions, the Bureau then 2018, and uncertainty or administrative requirements and how they interrelate. The Bureau excluded all depository institutions that do not burden around midyear implementation does not believe that the alternative approach have to report 2018 HMDA data in 2019 because may have reduced participation in the would provide any significant benefits for covered they originated fewer than 25 closed-end mortgage optional partial exemption. At any rate, persons or consumers. loans in either 2016 or 2017. Of the remaining 141 For purposes of HMDA section 104, the depository institutions, approximately 3,300 the Bureau continues to believe that its EGRRCPA provides that the term ‘‘insured credit originated fewer than 500 closed-end mortgage initial estimates provided in part VI of union’’ has the meaning given the term in section loans in both 2016 and 2017. For purposes of this the May 2019 Proposal were and are 101 of the Federal Credit Union Act, 12 U.S.C. estimate, the Bureau assumed that these institutions reasonable. Nevertheless, out of an 1752, and the term ‘‘insured depository institution’’ are insured, did not have a less than satisfactory has the meaning given the term in section 3 of the CRA examination history, and thus were partially abundance of caution, the Bureau is Federal Deposit Insurance Act, 12 U.S.C. 1813. exempt. providing in this analysis two separate

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sets of estimates of the savings on credit at the 100 open-end coverage threshold and be eligible for the partial ongoing costs due to the partial threshold and eligible for a partial exemption each year for two years. exemptions under the EGRRCPA for exemption under the EGRRCPA. Benefits to Covered Persons closed-end reporting: One set based on Importantly, because the open-end Partial Exemption for Closed-End the estimate of the impacted institutions lines of credit flag is one of the exempt in the May 2019 Proposal and the other Mortgage Loans data points under the EGRRCPA partial set based on the actual number of exemptions, it is not possible for the The partial exemption for closed-end financial institutions that used a partial Bureau to identify which 2018 HMDA mortgage loans in the EGRRCPA that exemption as reflected in the 2018 this final rule implements conveys a HMDA data.144 loan/application register records that reflect an EGRRCPA partial exemption direct benefit to the covered persons For the open-end lines of credit, the who are eligible for such exemption by for this data point are closed-end 2017 HMDA Rule grants a complete reducing the ongoing costs of having to transactions and which are open-end exclusion for two years (specifically, report certain data points that were transactions.145 2018 and 2019) for reporting open-end In other words, it is not previously required. lines of credit for all institutions that possible to identify whether a loan/ The Bureau’s 2015 HMDA Rule and originated fewer than 500 open-end application register record with the 2017 HMDA Rule, which define the lines of credit in either of the two open-end lines of credit flag reported as rules under the baseline for the analyses preceding calendar years. As such, ‘‘exempt’’ in the 2018 HMDA data is of this set of provisions, require insured depository institutions or exempt because it is a closed-end financial institutions to report a total of insured credit unions that originated transaction and the reporter is eligible 48 data points beginning with the data fewer than 500 open-end lines of credit for the partial exemption for closed-end collected in 2018 and reported in 2019. in each of the two preceding calendar transactions, or it is an open-end These data points contain 110 data years and are partially exempt under the transaction and the reporter is eligible fields.147 The EGRRCPA grants partial EGRRCPA are already completely for the partial exemption for open-end exemptions for certain transactions of excluded from HMDA’s requirements transactions. eligible financial institutions from for open-end lines of credit during 2018 Nevertheless, the Bureau continues to reporting 26 of the 48 data points, and 2019 under the 2017 HMDA Rule. believe that its original estimate which consist of 54 of the 110 data In other words, for the years 2018 and provided in the May 2019 Proposal of fields. Because this final rule requires 2019, the partial exemption for open- the number of open-end reporters that insured depository institutions and end lines of credit under the EGRRCPA would be eligible for a partial insured credit unions to provide a NULI has no immediate effect given the exemption with respect to open-end if they opt not to report a ULI for a temporary 500 open-end coverage lines of credit if the open-end reporting partially exempt transaction, the actual threshold established by the 2017 reduction in the number of data fields HMDA Rule. threshold were to revert to 100 was and is reasonable. Hence, the Bureau is that financial institutions need to report The 2017 HMDA Rule provides that, for partially exempt transactions would absent any future rulemaking, the open- estimating in this final rule that in 2020 and 2021, relative to the baseline be 53. In addition, even though property end coverage threshold will revert to address is an exempt data point, discussed above, i.e., pre-EGRRCPA and 100 open-end lines of credit as financial institutions must still report post-2017 HMDA Rule, but absent other established in the 2015 HMDA Rule, the State in which the property that rulemakings (including the extension of starting in 2020. Therefore, with the secures the covered loan (or, in the case the temporary 500 open-end threshold 2017 HMDA Rule and pre-EGRRCPA as of an application, is proposed to secure the baseline, the effects of the EGRRCPA under this final rule, which is discussed 146 the loan) is located for partially exempt on open-end reporting would manifest separately below), about 600 insured transactions, because State is an starting in 2020. In part VI of the May depository institutions and insured individual data point that is not exempt 2019 Proposal, the Bureau estimated credit unions would be impacted as under the EGRRCPA but it is also a data that, by 2020, absent other rulemakings, such institutions would otherwise be field associated with property address, about 595 insured depository required to report open-end lines of which is exempt under the EGRRCPA. institutions or credit unions would be credit at the 100 open-end coverage Therefore, the total number of data required to report open-end lines of fields that the eligible covered person 145 All other data points that could theoretically must report for a partially exempt 144 The Bureau believes, however, that in cases help distinguish open-end transactions from closed- transaction would be reduced by 52. where options are available to financial institutions end transactions based on loan characteristics and under a rule (in this case, eligible institutions are reporting requirements that are different for closed- With the exception of denial reasons no longer required to report certain data points, but end transactions than for open-end transactions (which were previously optionally they have the option to report such data points in (such as total loan costs, which are required for reported prior to the 2015 HMDA Rule, full), in general, the impact analysis of such a rule most closed-end single-family originated loans except that certain financial institutions should be based on a projection of the impacted excluding reverse mortgages and loans primarily for institutions eligible for the options, and not on the commercial or business transactions, but not supervised by the OCC and the FDIC number of institutions that actually use or decline required for open-end transactions), are also exempt were required to report denial reasons) to use the options, if the number of such data points under the EGRRCPA and not required and rate spread, all of the data points institutions using the options could not be known to be reported by eligible institutions. (and data fields) that are partially ex ante. The Bureau believes that, given that 146 In part VI of the May 2019 Proposal, the collection of 2018 data was already underway when Bureau estimated that, by 2020, absent other exempt under the EGRRCPA as the EGRRCPA partial exemptions took effect and rulemakings, about 595 insured depository implemented by the 2018 HMDA Rule that system changes implementing the new partial institutions and insured credit unions would be and this final rule correspond to data exemptions may take time to complete, the number required to report open-end lines of credit at the points (and data fields) that the Bureau of institutions that used a partial exemption for 100 open-end coverage threshold and eligible for a 2018 data is likely less than the number of eligible partial exemption under the EGRRCPA. The Bureau added to the HMDA reporting as institutions. However, because no information was notes that in this final rule, this estimation of 595 available about the open-end origination volumes of impacted institutions was rounded to about 600 147 See FFIEC, ‘‘Filing Instructions Guide for the financial institutions in year 2017 and 2016, impacted institutions to avoid the potentially HMDA Data Collected in 2019,’’ at 13–65 (Oct. other than the Bureau’s estimates, it is not feasible misleading appearance of precision in light of the 2018), https://s3.amazonaws.com/cfpb-hmda- to verify this affirmatively. uncertainty. public/prod/help/2019-hmda-fig.pdf.

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mandated by the Dodd-Frank Act or improvements described in the 2015 loan/application register records, the pursuant to the Bureau’s discretionary HMDA Rule, with certain adjustments total ongoing costs with operational authority granted under the Dodd-Frank that reflect this final rule. To do so, the improvements the Bureau has Act.148 Bureau takes the 2015 estimates on the implemented since issuing the 2015 The analysis under section 1022(b) of annual ongoing costs associated with HMDA Rule would be about $4,400, or the Dodd-Frank Act in the 2015 HMDA the new additional data points added in about $88 per loan/application register Rule noted that the Bureau was adding the 2015 HMDA Rule, prorates the record. Therefore, the Bureau believes 50 new data fields with new data points amount to account for the reduced the cost estimates that the commenter that previously did not exist under number of data fields required due to provided confirms the Bureau’s cost- Regulation C. To estimate the costs that the EGRRCPA partial exemptions, estimates in the 2015 HMDA Rule were financial institutions would incur in adjusts those for inflation, and arrives at and are reasonable, and therefore can collecting and reporting these data, the a set of estimates for the savings on the serve as the basis of the cost estimates Bureau used a cost-accounting, case- operational costs due to the partial for this final rule. study methodology which involved an exemptions for representative firms in Additionally, in the 2015 HMDA extensive set of interviews with each of the three tiers.150 Specifically, Rule, the Bureau assumed a financial institutions and their vendors the Bureau estimates that the savings on representative medium-complexity, tier through which the Bureau identified 18 annual operational costs from not 2 financial institution had 1,000 HMDA component tasks involved in collecting reporting the 52 data fields for closed- loan/application register records per and reporting HMDA data and estimated end mortgage loans that are exempt year while a high-complexity, tier 1 the number of person-hours required under the EGRRCPA and this final rule financial institution had 50,000 HMDA and the costs of each task for would be approximately $2,300, loan/application register records per institutions of various levels of $11,900, and $33,900 per year for year. The partial exemption for closed- complexity. The Bureau augmented this representative tier 3, tier 2, and tier 1 end mortgage loans granted under the information through the Small Business financial institutions that are eligible for EGRRCPA and that this final rule Review Panel process and through the partial exemption. implements applies only to insured notice and comment on its proposed In part VI of the May 2019 Proposal, depository institutions and insured cost estimates, as well as through a the Bureau specifically requested credit unions that originated less than review of academic literature and public information relating to the costs 500 closed-end mortgage loans in each data. Based on the information gathered financial institutions incurred in of the two preceding calendar years in this process, the Bureau estimated collecting and reporting 2018 data in prior to the HMDA collection year. that the impact of the additional 50 data compliance with the 2015 HMDA Rule Given that and the Bureau’s fields on annual operational costs of that may be valuable in estimating costs characterization of representative covered person for closed-end reporting in the Dodd-Frank Act section 1022(b) financial institutions in the three tiers, would be approximately $2,100, analysis issued with the final rule. The the Bureau believes that none of the tier $10,900, and $31,000 per year for Bureau received a number of comments 1 institutions are partially exempt for representative tier 3, tier 2, and tier 1 regarding the costs of collecting and closed-end reporting. financial institutions, respectively, after reporting data in compliance with the As explained in the May 2019 accounting for the operational 2015 HMDA Rule. Although most Proposal, some of the estimated improvements that the Bureau was comments did not provide specific cost partially exempt covered persons would planning to implement regarding how estimates of compliance, one small be low-complexity/tier 3 institutions, the Bureau receives and processes financial institution commented that it while some would belong to tier 2. submitted data.149 Since issuing the was expending approximately $12,000 Under the estimates provided in the 2015 HMDA Rule, the Bureau has in employee expenses alone to generate May 2019 Proposal, which the Bureau modernized the HMDA submission its loan/application register or continues to believe are reasonable, the system, improved its regulatory HMDA approximately $68–100 per loan/ Bureau estimates that of the 3,300 help functions, and made other application register record. Based on the institutions expected to be impacted, operational changes that were initially information provided by this approximately 2,640 institutions eligible discussed in the impact analyses of the commenter, the Bureau estimates the for the partial exemption from closed- 2015 HMDA Rule. The Bureau has not annual loan/application register size for end reporting are similar to the obtained new information with respect this commenter is between 175 and 200 representative tier 3 financial to the component tasks or costs set forth records, which is close to the Bureau’s institutions and approximately 660 in the 2015 HMDA Rule. Therefore, it is assumption for a representative low- eligible institutions belong to tier 2. reasonable to adopt these cost estimates, complexity, tier 3 financial institution Based on these counts, the Bureau which reflect the operational in the estimates provided in the 2015 estimates that the aggregate savings in HMDA Final Rule. Specifically, the ongoing operational costs for covered 148 On the other hand, as explained in the section- Bureau estimated that for a persons due to the EGRRCPA’s partial by-section analysis of § 1003(d)(1)(i) in part V representative low-complexity, tier 3 exemption from closed-end reporting above, age and number of units are not partially would be approximately $13.9 million exempt under the EGRRCPA even though they were financial institution with 50 HMDA added to Regulation C in the 2015 HMDA Rule. annually. 149 For example, the Bureau planned to create a 150 The Bureau used a wage rate of $33 per hour Alternatively, if the Bureau were to web-based submission tool with automated edit in its 2015 HMDA Rule impact analyses, which is assume that the number of impacted checks and to otherwise streamline the submission the national average wage for compliance officers institutions remains at 2,200, which was and editing process to make it more efficient for based on the Occupational Employment Statistics filers. In addition, the Bureau planned to from the Bureau of Labor Statistics in May 2014. the actual number of reporters that used consolidate the outlets for assistance, provide The May 2018 National Compensation Survey the partial exemption in the 2018 implementation support, and improve points of reported an average wage rate for compliance HMDA data, approximately 1,850 contact processes for help inquiries. These changes officers of $34.86 and their median wage was institutions eligible for the partial were implemented in 2018 for the 2017 filing year. $33.10 (available at https://www.bls.gov/oes/ The Bureau has received feedback from reporting current/oes131041.htm). The Bureau has used a exemption from closed-end reporting entities on the new systems, which generally wage rate of $34 for the impact analyses for this are similar to the representative tier 3 indicate substantial costs savings. final rule. financial institutions and approximately

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350 eligible institutions belong to tier 2. institutions that are eligible for the analyses regarding costs and cost Based on these alternative counts, the partial exemption. savings by incorporating this new Bureau estimates that the aggregate The Bureau estimates that, absent the information in the paragraphs below. savings in ongoing costs for covered temporary extension of the open-end According to the Bureau’s estimates persons due to the EGRRCPA’s partial coverage threshold at 500 for two in the May 2019 Proposal, about 545 of exemption from closed-end reporting additional years in this final rule, about those 595 partially exempt open-end would be approximately $8.4 million 600 152 financial institutions would be reporters are low-complexity tier 3 annually. partially exempt from reporting certain open-end reporters, about 50 are Combining these two sets of data points on open-end lines of credit moderate-complexity tier 2 open-end estimates, the Bureau estimates that the under the EGRRCPA. reporters, and none are high-complexity aggregate savings in ongoing costs for On the other hand, because the tier 1 reporters. According to the covered persons due to the EGRRCPA’s numbers of open-end line of credit Bureau’s updated estimates, about 350 partial exemption from closed-end applications and purchased loans were of those approximately 600 partially reporting would be between not available in any data sources prior exempt open-end reporters are low- approximately $8.4 million and $13.9 to the 2018 HMDA data, the Bureau complexity tier 3 open-end reporters, million annually. relied on the projected number of open- about 250 are moderate-complexity tier end originations as a proxy for the 2 open-end reporters, and none are Partial Exemption for Open-End Lines projected number of open-end line of high-complexity tier 1 reporters.156 of Credit credit loan/application register records Using these estimates, the Bureau Starting in 2020,151 absent the (comprising originations, applications estimates that by granting a partial temporary extension of the open-end not originated, and purchased loans) 153 exemption to most insured depository coverage threshold at 500 for two for the analyses in part VI of the May institutions and insured credit unions additional years in this final rule, which 2019 Proposal.154 With the benefit of the that originate fewer than 500 open-end is analyzed separately below in part 2018 HMDA data, the Bureau now can lines of credit in each of two preceding VII.E.3, the partial exemption for open- evaluate the impact of the final rule years, absent the temporary extension of end lines of credit in the EGRRCPA that using a more accurate estimate of the the open-end coverage threshold of 500 this final rule implements would number of open-end line of credit loan/ open-end lines of credit in this final rule convey a direct benefit to covered application register records. Because for two additional years starting in 2020, persons who are eligible for such most of the data points under HMDA are the EGRRCPA would provide an exemption by reducing the ongoing required for all loan/application register aggregate reduction in ongoing costs of having to report certain data records and not just originated loans operational costs associated with open- points that were previously required. and lines of credit, the Bureau believes end lines of credit for eligible financial In the impact analysis of the 2015 it is appropriate to update its estimates institutions of about $7.4 million per HMDA Rule, the Bureau estimated that, of cost and cost savings based on the year. This is higher than the Bureau’s accounting for the Bureau’s planned number of open-end line of credit loan/ initial estimate in the May 2019 operational improvements, the application register records instead of Proposal of about $3.6 million in annual estimated impact of the 2015 HMDA originations. About 2.3 million open- savings on operational costs due to the Rule on ongoing operational costs on end line of credit loan/application partial exemption on open-end open-end reporters would be register records were reported in the reporting. This higher estimate for the approximately $8,600, $43,400, and 2018 HMDA data, with about 1.14 reduction in annual operational costs is $273,000 per year, for representative million of those records being open-end based on the Bureau’s updated analysis low-, moderate-, and high-complexity line of credit originations.155 Therefore, that uses the projected number of loan/ financial institutions, respectively. The the Bureau has supplemented its application register records Bureau takes such 2015 estimates on the supplemented by the 2018 HMDA data, annual ongoing costs associated with 152 In part VI of the May 2019 Proposal, the which is approximately twice the open-end reporting, prorates the amount Bureau estimated that, by 2020, absent other number of projected open-end to account for the reduced number of rulemakings, about 595 insured depository originations the Bureau relied on in the institutions or credit unions would be required to data fields required due to the May 2019 Proposal. Although the EGRRCPA partial exemption, adjusts report open-end lines of credit at the 100 open-end coverage threshold and eligible for a partial estimated total cost reduction is higher those for inflation, and arrives at a set exemption under the EGRRCPA. The Bureau notes than it was in the proposal based on the of estimates for the savings on the that in this final rule, this estimation of 595 additional 2018 HMDA data, the overall operational costs of reporting impacted institutions was rounded to about 600 analysis is consistent with the Bureau’s information on open-end lines of credit impacted institutions to avoid the potentially misleading appearance of precision in light of the methodology and conclusions from the due to the partial exemption for uncertainty. May 2019 Proposal. representative firms in each of the three 153 As reflected in the 2018 HMDA data, very few tiers. Specifically, the Bureau estimates open-end lines of credit are reported as Costs to Covered Persons that the impact on the savings on annual ‘‘purchased.’’ Therefore the number of open-end It is possible that, like any new operational costs from not reporting the loan/application register records is very close to the number of open-end line of credit applications and regulation or revision to the existing 52 data fields for open-end mortgage originations. loans that are exempt under the 154 In other words, because of the lack of 156 The increase in the number of tier 2 reporters EGRRCPA would be approximately information on the number of open-end line of in the Bureau’s updated estimates, compared to $4,500, $22,800, and $144,000 per year credit applications relative to the number of open- estimates in the May 2019 proposal, is due to the for representative tier 3, tier 2, and tier end line of credit originations, the Bureau used the fact that the overall volume of open-end loan/ number of open-end line of credit originations to application records, which includes previously- 1 open-end reporting financial estimate the total number of open-end line of credit unavailable data on non-originated open-end loan/application register records in developing the applications, is nearly double the volume of open- 151 As noted above, for the years 2018 and 2019, estimates for the May 2019 Proposal before the 2018 end originations. Using the total number of open- the partial exemption regarding open-end lines of HMDA data became available. end loan/application register records thus shifted credit would have no immediate effects given the 155 By comparison, in the May 2019 Proposal the more small reporters from the tier 3 category to the temporary coverage threshold of 500 open-end lines Bureau estimated approximately 1.23 million open- tier 2 category based on the Bureau’s methodology, of credit established in the 2017 HMDA Rule. end line of credit originations. as explained above.

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regulations, financial institutions would account for the difference in the number asymmetry between lenders and incur certain one-time costs adapting to of the data fields that are partially borrowers) in which case the pass- the changes of the final rule. Based on exempt under the EGRRCPA and the through to the consumers would most the Bureau’s early outreach to number of data fields of new data points likely be smaller than the pass-through stakeholders, the Bureau understands added by the 2015 HMDA Rule, and under the perfect competition that most such one-time costs would adjusting for inflation, the Bureau assumption.159 Therefore, the Bureau result from interpreting and estimates that the partial exemption does not anticipate any material effect implementing the regulatory changes, under the EGRRCPA and this final rule on credit access in the long or short but not from purchasing software would reduce the variable cost per term even if financial institutions pass upgrades or turning off the existing closed-end mortgage loan application on these reduced costs to consumers. reporting functionality that the eligible for a representative tier 3 financial Costs to Consumers institutions already built or purchased institution by about $24 and for a prior to the EGRRCPA taking effect. representative tier 2 financial institution The partial exemptions under the The Bureau did not receive comments by about $0.68. This potential reduction EGRRCPA and further implemented on any costs to eligible financial in the expense facing consumers when through this final rule remove the institutions associated with the May applying for a closed-end mortgage will reporting requirements for 26 data 2019 Proposal relating to the be amortized over the life of the loan points for certain transactions of eligible incorporation of the EGRRCPA into and represents a very small decrease in insured depository institutions and Regulation C. the cost of a mortgage loan. Therefore, insured credit unions. As a result, regulators, public officials, and Benefits to Consumers the Bureau does not anticipate any material effect on credit access in the members of the public will lose Having generated estimates of the long or short term if financial information about the credit offered by reduction in ongoing costs for closed- institutions pass on these cost savings to these partially exempt institutions and end mortgage loans on financial consumers. overall credit in the communities they institutions due to the EGRRCPA partial Similarly, having generated estimates serve. The decreased information about exemption for closed-end mortgage of the reduction in ongoing costs for partially exempt financial institutions loans implemented by this final rule, open-end mortgage loans on financial may lead to adverse outcomes for some the Bureau can estimate the potential institutions due to the EGRRCPA partial consumers. For instance, some of the pass-through of such cost reduction exemption for open-end lines of credit exempt data points could have helped from these institutions to consumers,157 implemented in this final rule, the the regulators and public officials better which could benefit consumers. Bureau can estimate the potential pass- understand the type of funds that are According to economic theory, in a through of such cost reduction from flowing from lenders to consumers and perfectly competitive market where these institutions to consumers, which the needs of consumers for mortgage financial institutions are profit could benefit consumers. credit. Additionally, some exempt data maximizers, the affected financial The Bureau estimated in the 2015 points could improve the processes institutions would pass on to consumers HMDA Rule that the rule would used to identify possible discriminatory the marginal, i.e., variable, cost savings increase variable costs by $41.50 per lending patterns and enforce per application or origination, and open-end line of credit application for antidiscrimination statutes. In addition, absorb the one-time and increased fixed representative low-complexity without the exempt data regarding, for costs of complying with the rule. institutions and $6.20 per open-end line example, underwriting and pricing, The Bureau estimated in the 2015 of credit application for representative some lenders with low fair lending risk HMDA Rule that the 50 data fields of moderate-complexity institutions. may be initially misidentified as high the new data points required under the Accounting for the difference in the risk, potentially increasing their 2015 HMDA Rule would add variable number of the data fields that are associated compliance burden. Finally, costs per application for closed-end partially exempt under the EGRRCPA to the extent that some covered persons mortgage loans of approximately $22 for and the total number of data fields that may use the information reported by a representative tier 3 financial comprise all data points under the 2015 other financial institutions for market institution, $0.62 for a representative HMDA Rule, and adjusting for inflation, research purposes, the partial tier 2 financial institution, and $0.05 for the Bureau estimates that the partial exemptions may potentially lead to less a representative tier 1 financial exemption under the EGRRCPA and this vigorous competition from these institution.158 As explained above, the final rule would reduce the variable cost institutions. The Bureau has no partial exemption in the EGRRCPA and per open-end line of credit application quantitative data that can sufficiently this final rule will reduce the number of for a representative tier 3 financial measure the magnitude of this impact. data fields that have to be reported by institution by about $22 and for a 52 and almost all those partially exempt representative tier 2 financial institution 3. Provisions to Temporarily Extend the data fields correspond to data fields for by about $3. These savings on the Open-End Coverage Threshold of 500 new data points added by the 2015 variable costs by the partially exempt Open-End Lines of Credit HMDA Rule. Adjusting these figures to open-end reporters could potentially be Scope of the Provisions passed through to consumers, under the The final rule extends the temporary 157 Note that throughout this cost-benefit analysis, assumption of a perfectly competitive open-end coverage threshold of 500 the Bureau discusses such pass-through in order to market with profit maximizing firms. open-end lines of credit for two present a complete picture of the benefits that are These expenses will be amortized over the result of the May 2019 Proposal. However, such additional years (2020 and 2021). pass-through from the financial institution to the life of a loan and represent a very The 2015 HMDA Rule generally consumers as a result of the May 2019 Proposal is small amount relative to the cost of a requires financial institutions that a direct flow from the savings to the financial mortgage loan. The Bureau notes that originated at least 100 open-end lines of institutions, and should not be interpreted as a gain the market structure in the consumer in addition to the savings to the financial institutions from a general equilibrium perspective mortgage lending market may differ 159 The further the market moves away from a for the calculation of total social benefit. from that of a perfectly competitive perfectly competitive market, the smaller the pass- 158 80 FR 66128, 66291 (Oct. 28, 2015). market (for instance due to information through would be.

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credit in each of the two preceding years open-end line of credit coverage possible that some lenders with open- to report data about their open-end lines threshold set in the 2017 HMDA Rule, end line of credit origination volumes of credit and applications. The 2017 about 333 financial institutions would exceeding 500 in both 2016 and 2017 HMDA Rule temporarily increased the be required to report open-end lines of originated fewer than 500 open-end open-end coverage threshold to 500 for credit, accounting for about 1.23 million lines of credit in 2018, but were two years, meaning only financial open-end lines of credit. In comparison, nevertheless required to report their institutions that originated at least 500 if the open-end coverage threshold were 2018 data under the HMDA reporting open-end lines of credit in each of the set at 100, the Bureau estimated that the requirements. On the other hand, it is two preceding years are subject to number of reporters would be about also possible that some reporters opted HMDA’s requirements for their open- 1,014, who in total originated about 1.41 to report their open-end lending end lines of credit for 2018 and 2019. million open-end lines of credit. In activities in the 2018 HMDA data even The EGRRCPA generally provides a other words, if the coverage threshold is though they were not required to report. partial exemption for insured depository increased to 500 for another two years Regardless, these 2018 open-end institutions and insured credit unions (2020 and 2021), in comparison to the reporters with reported origination that originated less than 500 open-end default baseline where the threshold is volume less than 500 in 2018 will not lines of credit in each of the two set at 100 in 2020, the Bureau estimated be required to collect data on their preceding years. However, for 2018 and that the number of institutions affected open-end activity in 2020 when the two- 2019, all insured depository institutions would be about 681, who in total year temporary extension of the 500 and insured credit unions that are originated about 177,000 open-end lines open-end threshold of this final rule granted a partial exemption for open- of credit. Among those 681 institutions, takes effect, based on the two-year end lines of credit by the EGRRCPA are the Bureau estimated that about 618 fully excluded from HMDA’s lookback period of the reporting already qualify for a partial exemption requirements. Therefore, for the purpose requirements for their open-end lines of for their open-end lines of credit under credit by the 2017 HMDA Rule. Absent of the consideration of costs and the EGRRCPA and in total they originate benefits of the final rule, it is reasonable any further changes via a rulemaking about 136,000 open-end lines of credit. process, according to the 2015 HMDA to exclude these 2018 open-end The majority of the analyses in part VI reporters with open-end origination Rule and the 2017 HMDA Rule, starting of the May 2019 Proposal rule was in 2020 the open-end coverage volumes below 500 from the Bureau’s conducted prior to the official projections of impacted institutions. threshold will adjust to 100, and submission deadline of the 2018 HMDA institutions that exceed the coverage Hence, the Bureau believes that its data on March 1, 2019, and 2017 was estimate of the number of impacted threshold of 100 open-end lines of the most recent year of HMDA data the credit will be able to use the institutions due to the two-year Bureau used for the analyses in the May temporary extension provided in the EGRRCPA’s open-end partial exemption 2019 Proposal. For this part of the final if they originated less than 500 open- May 2019 Proposal was and is rule, the Bureau has supplemented the reasonable and consistent with the end lines of credit in each of the two analyses with the 2018 HMDA data now preceding years. Thus, the appropriate actual number of open-end reporters in available and released to the public on the 2018 HMDA data. baseline for the consideration of benefits August 30, 2019. In the 2018 HMDA and costs of the two-year extension of data about 957 reporters actually On the other hand, because the the temporary threshold of 500 open- reported any open-end line of credit number of open-end applications was end lines of credit in the final rule is a transactions. In total, these institutions not available in any data sources prior situation in which the open-end reported about 1.15 million open-end to the 2018 HMDA data, in past HMDA coverage threshold is set at 100 for each originations, which is close to what the rulemakings related to open-end of two preceding years for HMDA data Bureau projected in its estimate of 1.23 reporting, the Bureau relied on the collection in 2020 and 2021, and the million originations to be reported in projected number of originations as a partial exemption with a threshold of the May 2019 Proposal. Even though the proxy of the number of loan/application 500 open-end lines of credit applies. number of open-end reporters in the register records for the analyses. With The Bureau has used multiple data 2018 HMDA data (957) is greater than the 2018 HMDA data reported, the sources, including credit union Call the number the Bureau forecasted Bureau now can evaluate the impact of Reports, Call Reports for banks and would be required to report (333) in the the final rule using the projected loan/ thrifts, HMDA data, and Consumer May 2019 Proposal, only 307 of them application register records instead of Credit Panel data, to develop estimates that reported open-end transactions in projected originations for the first time. about open-end originations for lenders the 2018 HMDA data actually reported Because most of the data points under that offer open-end lines of credit and greater than 500 open-end originations, HMDA are required for all loan/ assess the impact of various thresholds which is close to the Bureau’s projection application register records, not just on the numbers of reporters and market that there would be 333 required open- originated loans, the Bureau has coverage under various scenarios.160 end reporters. The Bureau’s projection updated the estimates of cost and cost In part VI of the May 2019 Proposal, in the May 2019 Proposal was based on savings for open-end lines of credit the Bureau estimated that there were the projected number of open-end based on the number of loan/application about 1.59 million open-end lines of reporters whose open-end origination register records instead of originations. credit originated in 2017 by about 6,615 volumes were greater than 500 in each The Bureau’s coverage estimates, lenders, and under the temporary 500 of the preceding two years (which is however, continue to be based on originations because the thresholds are 160 In general, credit union Call Reports provide how the HMDA reporting requirements the number of originations of open-end lines of are structured), and not on the volume based on origination volume, and thus, credit secured by real estate but exclude lines of from the current HMDA activity year; in as noted immediately above, the credit in the first-lien status. Call Reports for banks addition, that projection cannot account estimates previously provided continue and thrifts report only the balance of the home- to be reasonable. The analyses below equity lines of credit at the end of the reporting for the number of reporters who would period but not the number of originations in the report voluntarily even though they are have been supplemented to reflect the period. not required to do so. Given this, it is new 2018 data that includes

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applications, originations, and Table 3 below shows the estimated volume, and the market share under 100 purchased loans. number of open-end lines of credit and 500 open-end coverage thresholds. reporters, their estimated origination

TABLE 3

Reporting threshold Open-end lines of credit Universe 100 500

# of Loans (in 1,000’s): All ...... 1,590 1,410 1,233 Market Coverage ...... 88.7% 77.6% Type: Banks & Thrifts ...... 880 814 753 Credit Unions ...... 653 545 437 Non-DIs ...... 57 51 44 Agency: OCC ...... 34 22 10 Fed ...... 34 24 9 FDIC ...... 96 59 29 NCUA ...... 563 484 378 HUD ...... 57 51 44 CFPB ...... 766 766 761 # of Institutions: All ...... 6,615 1,014 333 Type: Banks & Thrifts ...... 3,819 391 113 Credit Unions ...... 2,578 581 205 Non-DIs ...... 218 42 15 Agency: OCC ...... 624 65 12 Fed ...... 433 72 9 FDIC ...... 1,842 173 29 NCUA ...... 1,650 561 197 HUD ...... 218 42 15 CFPB ...... 99 86 68

Benefits to Covered Persons costs of open-end reporting would be Bureau estimated that 618 reporters about $4,300, $21,900, and $138,000 per The extension of the temporary open- would be eligible for the partial year, for representative low-, end coverage threshold of 500 for two exemption, of which about 567 are low- moderate-, and high-complexity additional years, as compared to the complexity tier 3 open-end reporters, financial institutions, respectively, that alternative of having the threshold about 51 are moderate-complexity tier 2 are eligible for a partial exemption for adjust to 100, conveys a direct benefit to open-end reporters, and none are high- open-end lines of credit under the covered persons that originated fewer complexity tier 1 reporters. EGRRCPA. Supplementing the analysis with the than 500 open-end lines of credit in The Bureau estimates that, with the either of the two preceding years but 2018 data, the Bureau estimates that, of coverage threshold increased to 500 as the 600 institutions that are already originated no less than 100 open-end compared to reverting to 100 for 2020 lines of credit in each of the two eligible for a partial exemption under and 2021, about 680 financial the EGRRCPA but will be fully excluded preceding years in reducing the ongoing institutions will be excluded from costs associated with open-end lines of for two additional years from open-end reporting open-end lines of credit reporting by this final rule, about 350 credit during 2020 and 2021. 161 during the two years. About 600 of are low-complexity tier 3 open-end In the impact analysis of the 2015 those approximately 680 financial HMDA Rule, the Bureau estimated that, reporters, about 250 are moderate- institutions are eligible for the partial complexity tier 2 open-end reporters, accounting for the Bureau’s planned exemption for open-end lines of credit operational improvements, the ongoing and none are high-complexity tier 1 under the EGRRCPA and further reporters. operational costs on open-end reporters implemented by the 2018 HMDA Rule for all data points required under the and this final rule, and about 80 of them In addition, in the May 2019 Proposal, 2015 HMDA Rule would be are not eligible for the partial exemption the Bureau estimated that of the 63 approximately $8,600, $43,400, and for open-end lines of credit because in institutions that are not eligible for the $273,000 per year, for representative one of the preceding two years their partial exemption under the EGRRCPA low-, moderate-, and high-complexity open-end origination volume was at but would be fully excluded for two financial institutions, respectively. least 500. In the May 2019 Proposal, the additional years from open-end Adjusting for inflation, this is reporting by the May 2019 Proposal, equivalent to approximately $8,800, 161 The Bureau estimated in the May 2019 about 26 are low-complexity tier 3 open- $44,700, and $281,100 per year Proposal that about 681 financial institutions would end reporters, about 37 are moderate- currently. On the other hand, be excluded from reporting open-end lines of credit complexity tier 2 open-end reporters, during the two years. This number is rounded to accounting for the reduced number of about 680 in this updated analysis to avoid the and none are high-complexity tier 1 required data points and inflation, the potentially misleading appearance of precision in reporters. Supplementing the analysis Bureau now estimates that the ongoing light of the uncertainty. with the 2018 data, the Bureau now

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estimates that of the 80 institutions that were temporarily excluded for 2018 and amortized over the life of a loan and are not eligible for the partial exemption 2019 under the 2017 HMDA Rule have represent a negligible reduction in the under the EGRRCPA but will be fully not fully prepared for open-end cost of a mortgage loan. The Bureau excluded for two additional years from reporting because they have been notes that the market structure in the open-end reporting by this rule, about waiting for the Bureau to decide on the consumer mortgage lending market may 30 are low-complexity tier 3 open-end open-end reporting threshold that will differ from that of a perfectly reporters, about 50 are moderate- apply after the temporary threshold of competitive market (for instance due to complexity tier 2 open-end reporters, 500 loans expires in 2020. Under the information asymmetry between lenders and none are high-complexity tier 1 baseline in this impact analysis, absent and borrowers) in which case the pass- reporters. The shift to more tier 2 this final rule, those financial through to the consumers would most reporters in the Bureau’s updated institutions would have to start likely be smaller than the pass-through estimates is mostly due to the fact that reporting their open-end lines of credit under the perfect competition in the 2018 HMDA data the overall starting in 2020, and hence incur one- assumption.162 Therefore, the Bureau volume of open-end loan/application time costs to create processes and does not anticipate any material effect records, including applications that are systems for open-end lines of credit. on credit access in the long or short not originated, is nearly double, which The extension of the 500 open-end term even if financial institutions pass shifts more small reporters to the tier 2 coverage threshold for 2020 and 2021 in on these reduced costs to consumers. category based on the Bureau’s this final rule will delay incurrence of Costs to Consumers methodology as explained previously. such one-time costs for two more years. Using the estimates of savings on The extension of the temporary Costs to Covered Persons ongoing costs for open-end lines of coverage threshold of 500 for open-end credit for representative financial It is possible that, like any new lines of credit for 2020 and 2021 will institutions, grouped by whether the regulation or revision to the existing reduce the open-end data submitted lender is already eligible for the partial regulations, financial institutions may under HMDA. As a result, HMDA data exemption under the EGRRCPA, as incur certain one-time costs adapting to on these institutions’ open-end loans described above, the Bureau estimates the changes to the regulation. Based on and applications will no longer be that by extending the temporary 500 the Bureau’s early outreach to available to regulators, public officials, open-end coverage threshold for two stakeholders, the Bureau understands and members of the public. The years, the eligible financial institutions that most of such one-time costs will decreased data from affected financial that are already partially exempt under result from interpreting and institutions may lead to adverse the EGRRCPA will receive an aggregate implementing the regulatory changes, outcomes for some consumers. For reduction in operational cost associated but not from purchasing software instance, reporting data on open-end with open-end lines of credit of about upgrades or turning off the existing line of credit applications and $7.0 million per year in the years 2020 reporting functionality that the eligible originations and on certain demographic and 2021. The eligible financial institutions already built or purchased characteristics of applicants and institutions that are not already partially prior to the new changes taking effect. borrowers could help the regulators and public officials better understand the exempt under the EGRRCPA will Benefits to Consumers receive an aggregate reduction in type of funds that are flowing from operational cost associated with open- Having generated estimates of the lenders to consumers and consumers’ end lines of credit of about $2.4 million reduction in ongoing costs on covered need for mortgage credit. Open-end line per year in the years 2020 and 2021. In financial institutions due to the of credit data that may be relevant to total, extending the 500 open-end line of temporary increase in the open-end underwriting decisions may also help credit threshold for two additional years coverage threshold, the Bureau then improve the processes used to identify will result in operational cost savings of attempts to estimate the potential pass- possible discriminatory lending patterns about $9.4 million per year in the years through of such cost reduction from the and enforce antidiscrimination statutes. 2020 and 2021. lenders to consumers, which could The Bureau has no quantitative data that In the May 2019 Proposal, the Bureau benefit consumers. According to can sufficiently measure the magnitude estimated that the annual savings on economic theory, in a perfectly of this impact. operational costs would be about $5.6 competitive market where financial institutions are profit maximizers, the F. Potential Specific Impacts of the million due to the two-year extension of Final Rule the temporary open-end threshold of affected financial institutions would 500 open-end lines of credit. The higher pass on to consumers the marginal, i.e., 1. Depository Institutions and Credit estimate presented above for the final variable, cost savings per application or Unions With $10 Billion or Less in Total rule is mainly due to the fact that the origination, and absorb the one-time and Assets, as Described in Section 1026 Bureau now is able to supplement new increased fixed costs of complying with As discussed above, the final rule information from the 2018 HMDA data, the rule. incorporates the interpretations and The Bureau estimated in the 2015 which allows the Bureau to conduct the procedures from the 2018 HMDA Rule HMDA Rule that the rule would estimates based on the number of open- into Regulation C and further increase variable costs by $41.50 per end loan/application register records implements section 104(a) of the open-end line of credit application for rather than the number of originations. EGRRCPA, which grants eligible representative low-complexity Although the estimated total cost financial institutions partial exemptions institutions and $6.20 per open-end line reduction is higher than it was in the from HMDA’s requirements for certain of credit application for representative proposal based on the additional 2018 transactions and extends for a period of moderate-complexity institutions. These HMDA data, the overall analysis is two years the current temporary savings on variable costs by the consistent with the Bureau’s threshold for reporting data about open- methodology and conclusions from the excluded open-end reporters could May 2019 Proposal. potentially be passed through to the 162 The further the market moves away from a It is the Bureau’s understanding that consumers, if the market is perfectly perfectly competitive market, the smaller the pass- most of the financial institutions that competitive. These expenses will be through would be.

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end lines of credit of 500 open-end lines about 200 are moderate-complexity tier $7.6 million per year in the years 2020 of credit. 2 open-end reporters, and none are and 2021.164 Both sets of provisions in the final high-complexity tier 1 reporters.163 rule focus on burden reduction for 2. Impact of the Provisions on Based on these counts, the Bureau Consumers in Rural Areas smaller institutions. Therefore, the estimates that the aggregate savings on Bureau believes that the benefits of this ongoing costs for these small depository The final provisions will not directly rule to depository institutions and credit institutions or credit unions due to the impact consumers in rural areas. unions with $10 billion or less in total partial exemption from open-end However, as with all consumers, assets will be similar to the benefit to reporting will be approximately $6 consumers in rural areas may be creditors as a whole, as discussed above. million annually, starting in calendar impacted indirectly. This would occur if Specifically, the Bureau estimates that year 2020. financial institutions serving rural areas the reduction in annual operational are HMDA reporters (in which case the costs from the partial exemption for For the temporary two-year extension final rule will lead to decreased closed-end reporting under the of the open-end coverage threshold of information in rural areas) and if these EGRRCPA and further implemented by 500 originations in the final rule, the institutions pass on some or all of the the 2018 HMDA Rule and this final rule Bureau estimates that for depository cost reduction to consumers (in which will be approximately $2,300, $11,900, institutions and credit unions with $10 case, some consumers could benefit). and $33,900 per year for representative billion in assets or less that will not Recent research suggests that financial tier 3, tier 2, and tier 1 depository have to report open-end lines of credit institutions that primarily serve rural institutions and credit unions with $10 under the final rule, the reduction in areas are generally not HMDA billion or less in total assets that are annual ongoing operational costs for the reporters.165 The Housing Assistance eligible for the partial exemptions of excluded institutions not eligible for the Council (HAC) suggests that the current closed-end reporting. The Bureau partial exemption for open-end lines of asset and geographic coverage criteria estimates that all but about eight of the credit under the EGRRCPA will be already in place disproportionately approximately 3,300 institutions that approximately $8,800, $44,700, and exempt small lenders operating in rural are eligible for the partial exemption $28,100 per year, for representative communities. For example, HAC uses from closed-end reporting are small low-, moderate-, and high-complexity 2009 Call Report data to show that depository institutions or credit unions financial institutions, respectively, and approximately 700 FDIC-insured with assets at or below $10 billion. the reduction in annual ongoing lending institutions had assets totaling About 2,672 of the partially exempt operational costs for excluded less than the HMDA institutional closed-end reporting small depository institutions already partially exempt for coverage threshold and were institutions or credit unions are low- open-end lines of credit under the headquartered in rural communities. complexity tier 3 closed-end reporters, EGRRCPA will be approximately These institutions, which would not be with the rest being moderate-complexity $4,300, $21,900, and $138,000 annually, HMDA reporters, may represent one of tier 2 closed-end reporters, and none are for representative low-, moderate-, and the few sources of credit for many rural high-complexity tier 1 reporters. Based high-complexity financial institutions, areas. Some research also suggests that on these calculations, the Bureau respectively. The Bureau estimates that HMDA’s coverage of rural areas is estimates that the aggregate savings on about 633 of the approximately 680 limited, especially areas further from ongoing costs for these institutions will institutions that will be temporarily MSAs.166 If a large portion of the rural be approximately $13.5 million excluded from open-end reporting in housing market is serviced by financial annually. 2020 and 2021 under this rule are small 164 The Bureau estimates that the depository institutions or credit unions In comparison, in the May 2019 Proposal, the reduction in annual operational costs Bureau estimated that about 633 of the with assets at or below $10 billion, and approximately 681 institutions that would be starting in calendar year 2020 from the about 580 of them are already partially temporarily excluded from open-end reporting in partial exemption from open-end exempt under the EGRRCPA. Combined, 2020 and 2021 under the May 2019 Proposal are reporting under the EGRRCPA, absent the Bureau estimates that the annual small depository institutions or credit unions with the temporary open-end threshold assets at or below $10 billion, and about 578 of saving on operational costs for them are already partially exempt under the extension, would be approximately depository institutions and credit EGRRCPA. Combined, the Bureau estimated that $4,500, $22,800, and $144,000 per year unions with $10 billion or less in assets the annual saving on operational costs for depository institutions and credit unions with $10 for representative tier 3, tier 2, and tier receiving the temporary exclusion for 1 depository institutions and credit billion or less in assets receiving the temporary open-end reporting for two additional exclusion for open-end reporting for two additional unions with $10 billion or less in total years under the final rule will be about years under the May 2019 Proposal would be about assets that are eligible for the partial $5 million per year in the years 2020 and 2021. The exemptions of open-end reporting. For shift to more tier 2 reporters in the Bureau’s 163 In comparison, in the May 2019 Proposal, the updated estimates is mostly due to the fact that in purposes of this final rule, the Bureau Bureau estimated that about 578 out of the 595 the 2018 HMDA data the overall volume of open- estimates that about 580 out of the financial institutions that would be partially end loan/application records, including approximately 600 financial institutions exempt from reporting certain data points on open- applications that are not originated, is nearly that are partially exempt from reporting end lines of credit under the EGRRCPA are small double, which shifts more small reporters to the tier depository institutions or credit unions with assets 2 category based on the Bureau’s methodology as certain data points on open-end lines of at or below $10 billion, and that about 531 of those explained previously. credit under the EGRRCPA are small 578 partially exempt small depository institutions 165 See, e.g., Keith Wiley, ‘‘What Are We Missing? depository institutions or credit unions or credit unions are low-complexity tier 3 open-end HMDA Asset-Excluded Filers,’’ Hous. Assistance with assets at or below $10 billion. reporters, about 47 are moderate-complexity tier 2 Council (2011), http://ruralhome.org/storage/ open-end reporters, and none are high-complexity documents/smallbanklending.pdf; Lance George & According to the Bureau’s updated tier 1 reporters. The shift to more tier 2 reporters Keith Wiley, ‘‘Improving HMDA: A Need to Better estimates, which incorporate the in the Bureau’s updated estimates is mostly due to Understand Rural Mortgage Markets,’’ Hous. number of applications instead of the fact that in the 2018 HMDA data the overall Assistance Council (2010), http:// originations, about 380 of those 580 volume of open-end loan/application records, www.ruralhome.org/storage/documents/ partially exempt small depository including applications that are not originated, is notehmdasm.pdf. nearly double, which shifts more small reporters to 166 See Robert B. Avery et al., ‘‘Opportunities and institutions or credit unions are low- the tier 2 category based on the Bureau’s Issues in Using HMDA Data,’’ 29 J. of Real Est. Res. complexity tier 3 open-end reporters, methodology as explained previously. 352 (2007).

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institutions that are already not HMDA institution, $6 for a representative tier 2 ‘‘small business’’ as a business that reporters, any indirect impact of the financial institution, and $3 for a meets the size standard developed by changes on consumers in rural areas representative tier 1 financial the Small Business Administration would be limited, as the changes institution.168 The 5,507 financial pursuant to the Small Business Act.173 directly involve none of those financial institutions that serviced rural areas The RFA generally requires an agency institutions. could attempt to pass these reduced to conduct an initial regulatory However, although some research variable costs on to all future mortgage flexibility analysis (IRFA) and a final suggests that HMDA currently does not customers, including the estimated 1.8 regulatory flexibility analysis (FRFA) of cover a significant number of financial million consumers from rural areas. any rule subject to notice-and-comment institutions serving the rural housing Amortized over the life of the loan, this rulemaking requirements, unless the market, HMDA data do contain expense would represent a negligible agency certifies that the rule will not information for some covered loans reduction in the cost of a mortgage loan. have a significant economic impact on involving properties in rural areas. The Bureau notes that the market a substantial number of small These data can be used to estimate the structure in the consumer mortgage entities.174 The Bureau also is subject to number of HMDA reporters servicing lending market may differ from that of certain additional procedures under the rural areas, and the number of a perfectly competitive market (for RFA involving the convening of a panel consumers in rural areas that might instance due to information asymmetry to consult with small business potentially be affected by the changes to between lenders and borrowers) in representatives prior to proposing a rule Regulation C. For this analysis, the which case the pass-through to the for which an IRFA is required.175 Bureau uses non-MSA areas as a proxy consumers would most likely be smaller As discussed above, this final rule for rural areas, with the understanding than the pass-through under the perfect incorporates the interpretations and that portions of MSAs and non-MSAs competition assumption.169 Therefore, procedures from the 2018 HMDA Rule may contain urban and rural territory the Bureau does not anticipate any into Regulation C and further and populations. In 2017, 5,207 HMDA material adverse effect on credit access implements section 104(a) of the reporters reported applications or in the long or short term even if these EGRRCPA, which grants eligible purchased loans for property located in financial institutions pass on these financial institutions partial exemptions geographic areas outside of an MSA. In reduced costs to consumers. from HMDA’s requirements for certain total, these 5,207 financial institutions The rural market may differ from non- transactions; and it extends the reported 1,794,248 applications or rural markets in terms of market temporary threshold of 500 open-end purchased loans for properties in non- structure, demand, supply, and lines of credit for reporting data about MSA areas. This number provides an competition level. For instance some open-end lines of credit for two years. upper-bound estimate of the number of rural markets may be more likely to be The section 1022(b)(2) analysis above consumers in rural areas that could be served by local or community banks describes how this final rule reduces the impacted indirectly by the changes. In than a large number of national lenders. costs and burdens on covered persons, general, individual financial institutions Therefore, consumers in rural areas may including small entities. Additionally, report small numbers of covered loans experience benefits and costs from the as described in the analysis above, a from non-MSAs, as approximately 72 final rule that are different than those small entity that is in compliance with percent reported fewer than 100 covered experienced by consumers in general. the law at such time when this final rule loans from non-MSAs. To the extent that the impacts of the takes effect does not need to take any Following microeconomic principles, final rule on creditors differ by type of additional action to remain in the Bureau believes that financial creditor, this may affect the costs and compliance other than choosing to institutions will pass on reduced benefits of the May 2019 Proposal on switch off all or parts of reporting variable costs to future mortgage consumers in rural areas. systems and functions. Based on these applicants, but absorb one-time costs considerations, the final rule does not and increased fixed costs if financial VIII. Final Regulatory Flexibility Act have a significant economic impact on institutions are profit maximizers and Analysis any small entities. 167 the market is perfectly competitive. The Regulatory Flexibility Act 170 as Accordingly, the undersigned hereby The Bureau defines variable costs as amended by the Small Business certifies that this final rule will not have costs that depend on the number of Regulatory Enforcement Fairness Act of a significant economic impact on a applications received. Based on initial 1996 171 (RFA) requires each agency to substantial number of small entities. outreach efforts, the following five consider the potential impact of its Thus, neither an FRFA nor a small operational steps affect variable costs: regulations on small entities, including business review panel is required for Transcribing data, resolving small businesses, small governmental this final rule. reportability questions, transferring data units, and small not-for-profit IX. Paperwork Reduction Act to an HMS, geocoding, and researching organizations.172 The RFA defines a questions. The primary impact of the Under the Paperwork Reduction Act final rule on these operational steps is 168 These cost estimates represent the highest of 1995 (PRA), 44 U.S.C. 3501 et seq., a reduction in time spent per task. estimates among the estimates presented in Overall, the Bureau estimates that the previous sections and form the upper bound of and comment].’’ 5 U.S.C. 601(4). The term ‘‘ ‘small impact of the final rule on variable costs possible savings. governmental jurisdiction’ means governments of per application is to reduce variable 169 The further the market moves away from a cities, counties, towns, townships, villages, school perfectly competitive market, the smaller the pass- districts, or special districts, with a population of costs by no more than $42 for a through would be. less than fifty thousand, unless an agency representative tier 3 financial 170 Public Law 96–354, 94 Stat. 1164 (1980). establishes [an alternative definition after notice 171 Public Law 104–21, section 241, 110 Stat. 847, and comment].’’ 5 U.S.C. 601(5). 167 If markets are not perfectly competitive or 864–65 (1996). 173 5 U.S.C. 601(3). The Bureau may establish an financial institutions are not profit maximizers, 172 5 U.S.C. 601–612. The term ‘‘ ‘small alternative definition after consulting with the then what financial institutions pass on may differ. organization’ means any not-for-profit enterprise Small Business Administration and providing an For example, they may attempt to pass on one-time which is independently owned and operated and is opportunity for public comment. Id. costs and increases in fixed costs, or they may not not dominant in its field, unless an agency 174 5 U.S.C. 601–612. be able to pass on variable costs. establishes [an alternative definition under notice 175 5 U.S.C. 609.

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Federal agencies are generally required (Attention: PRA Office), 1700 G Street § 1003.3 Exempt institutions and excluded to seek approval from the Office of NW, Washington, DC 20552, or by email and partially exempt transactions. Management and Budget (OMB) for to [email protected]. * * * * * information collection requirements (c) * * * X. Congressional Review Act prior to implementation. Under the (12) An open-end line of credit, if the PRA, the Bureau may not conduct or Pursuant to the Congressional Review financial institution originated fewer sponsor, and, notwithstanding any other Act,176 the Bureau will submit a report than 500 open-end lines of credit in provision of law, a person is not containing this rule and other required either of the two preceding calendar required to respond to, an information information to the U.S. Senate, the U.S. years; a financial institution may collection unless the information House of Representatives, and the collect, record, report, and disclose collection displays a valid control Comptroller General of the United information, as described in §§ 1003.4 number assigned by OMB. States prior to the rule’s published and 1003.5, for such an excluded open- The final rule amends 12 CFR part effective date. The Office of Information end line of credit as though it were a 1003 (Regulation C), which implements and Regulatory Affairs has designated covered loan, provided that the HMDA. The Bureau’s OMB control this rule as not a ‘‘major rule’’ as financial institution complies with such number for Regulation C is 3170–0008. defined by 5 U.S.C. 804(2). requirements for all applications for This final rule revises the information open-end lines of credit that it receives, List of Subjects in 12 CFR Part 1003 collection requirements contained in open-end lines of credit that it Regulation C that are currently Banks, Banking, Credit unions, originates, and open-end lines of credit approved by OMB under that OMB Mortgages, National banks, Reporting that it purchases that otherwise would control number as follows: (1) Extends and recordkeeping requirements, have been covered loans during the for two years Regulation C’s current Savings associations. calendar year during which final action temporary threshold of 500 open-end is taken on the excluded open-end line Authority and Issuance lines of credit for open-end institutional of credit; or and transactional coverage, and (2) For the reasons set forth above, the * * * * * implements the new, separate Bureau amends Regulation C, 12 CFR (d) Partially exempt transactions. (1) EGRRCPA partial exemptions that apply part 1003, as follows: For purposes of this paragraph (d), the to some HMDA reporting requirements. following definitions apply: PART 1003—HOME MORTGAGE As of October 29, 2019: These revised (i) Insured credit union means an DISCLOSURE (REGULATION C) collections of information have been insured credit union as defined in submitted to OMB for review under section 101 of the Federal Credit Union section 3507(d) of the PRA. A complete ■ 1. The authority citation for part 1003 continues to read as follows: Act (12 U.S.C. 1752). description of the information collection (ii) Insured depository institution requirements, including the burden Authority: 12 U.S.C. 2803, 2804, 2805, means an insured depository institution estimate methods, is provided in the 5512, 5581. as defined in section 3 of the Federal information collection request (ICR) that ■ 2. Effective January 1, 2020, § 1003.2, Deposit Insurance Act (12 U.S.C. 1813). the Bureau has submitted to OMB under as amended at 82 FR 43088, September (iii) Optional data means the data the requirements of the PRA. The ICR 13, 2017, is further amended by revising identified in § 1003.4(a)(1)(i), (a)(9)(i), submitted to OMB requesting approval paragraphs (g)(1)(v)(B) and (g)(2)(ii)(B) and (a)(12), (15) through (30), and (32) under the PRA for the information to read as follows: through (38). collection requirements contained (iv) Partially exempt transaction herein is available at § 1003.2 Definitions. means a covered loan or application that www.regulations.gov as well as OMB’s * * * * * is partially exempt under paragraph public-facing docket at www.reginfo.gov. (g) * * * (d)(2) or (3) of this section. Title of Collection: Home Mortgage (1) * * * (2) Except as provided in paragraph Disclosure Act (Regulation C). (d)(6) of this section, an insured OMB Control Number: 3170–0008. (v) * * * Type of Review: Revision of a (B) In each of the two preceding depository institution or insured credit currently approved information calendar years, originated at least 500 union that, in each of the two preceding collection. open-end lines of credit that are not calendar years, originated fewer than Affected Public: Private Sector. excluded from this part pursuant to 500 closed-end mortgage loans that are Estimated Number of Respondents: § 1003.3(c)(1) through (10); and not excluded from this part pursuant to 135. (2) * * * paragraphs (c)(1) through (10) or Estimated Total Annual Burden (ii) * * * paragraph (c)(13) of this section is not Hours: 1,500,000. (B) In each of the two preceding required to collect, record, or report Pursuant to 44 U.S.C. 3507, the calendar years, originated at least 500 optional data as defined in paragraph Bureau will publish a separate notice in open-end lines of credit that are not (d)(1)(iii) of this section for applications the Federal Register announcing OMB’s excluded from this part pursuant to for closed-end mortgage loans that it action on these submissions, including § 1003.3(c)(1) through (10). receives, closed-end mortgage loans that the OMB control number and expiration it originates, and closed-end mortgage date. * * * * * loans that it purchases. The Bureau has a continuing interest ■ 3. Effective January 1, 2020, § 1003.3, (3) Except as provided in paragraph in the public’s opinion of its collections as amended at 82 FR 43088, September (d)(6) of this section, an insured of information. At any time, comments 13, 2017, is further amended by revising depository institution or insured credit regarding the burden estimate, or any the section heading and paragraph union that, in each of the two preceding other aspect of the information (c)(12) and adding paragraph (d) to read calendar years, originated fewer than collection, including suggestions for as follows: 500 open-end lines of credit that are not reducing the burden, may be sent to the excluded from this part pursuant to Consumer Financial Protection Bureau 176 5 U.S.C. 801 et seq. paragraphs (c)(1) through (10) of this

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section is not required to collect, record, introductory text, (a)(1)(i) introductory ■ d. Under Section 1003.4— or report optional data as defined in text, and (e) to read as follows: Compilation of Reportable Data, revise paragraph (d)(1)(iii) of this section for 4(a) Data Format and Itemization. applications for open-end lines of credit § 1003.4 Compilation of reportable data. The revisions and addition read as that it receives, open-end lines of credit (a) Data format and itemization. A follows: that it originates, and open-end lines of financial institution shall collect data Supplement I to Part 1003—Official credit that it purchases. regarding applications for covered loans Interpretations (4) A financial institution eligible for that it receives, covered loans that it a partial exemption under paragraph originates, and covered loans that it * * * * * purchases for each calendar year. A (d)(2) or (3) of this section may collect, Section 1003.2—Definitions record, and report optional data as financial institution shall collect data defined in paragraph (d)(1)(iii) of this regarding requests under a preapproval * * * * * section for a partially exempt program, as defined in § 1003.2(b)(2), 2(g) Financial Institution transaction as though the institution only if the preapproval request is 1. Preceding calendar year and preceding were required to do so, provided that: denied, is approved by the financial December 31. The definition of financial (i) If the institution reports the street institution but not accepted by the institution refers both to the preceding address, city name, or Zip Code for the applicant, or results in the origination of calendar year and the preceding December property securing a covered loan, or in a home purchase loan. Except as 31. These terms refer to the calendar year and the case of an application, proposed to provided in § 1003.3(d), the data the December 31 preceding the current secure a covered loan pursuant to collected shall include the following calendar year. For example, in 2019, the items: preceding calendar year is 2018 and the § 1003.4(a)(9)(i), it reports all data that preceding December 31 is December 31, would be required by § 1003.4(a)(9)(i) if (1)(i) A universal loan identifier (ULI) 2018. Accordingly, in 2019, Financial the transaction were not partially or, for a partially exempt transaction Institution A satisfies the asset-size threshold exempt; under § 1003.3(d), either a ULI or a non- described in § 1003.2(g)(1)(i) if its assets (ii) If the institution reports any data universal loan identifier (NULI) as exceeded the threshold specified in comment for the transaction pursuant to described in § 1003.3(d)(5) for the 2(g)–2 on December 31, 2018. Likewise, in § 1003.4(a)(15), (16), (17), (27), (33), or covered loan or application that can be 2020, Financial Institution A does not meet (35), it reports all data that would be used to identify and retrieve the covered the loan-volume test described in required by § 1003.4(a)(15), (16), (17), loan or application file. Except for a § 1003.2(g)(1)(v)(A) if it originated fewer than 25 closed-end mortgage loans during either (27), (33), or (35), respectively, if the purchased covered loan or application 2018 or 2019. transaction were not partially exempt. described in paragraphs (a)(1)(i)(D) and 2. [Reserved] (5) If, pursuant to paragraph (d)(2) or (E) of this section or a partially exempt 3. Merger or acquisition—coverage of (3) of this section, a financial institution transaction for which a NULI is assigned surviving or newly formed institution. After does not report a universal loan and reported under § 1003.3(d), the a merger or acquisition, the surviving or identifier (ULI) pursuant to financial institution shall assign and newly formed institution is a financial § 1003.4(a)(1)(i) for an application for a report a ULI that: institution under § 1003.2(g) if it, considering the combined assets, location, and lending covered loan that it receives, a covered * * * * * loan that it originates, or a covered loan activity of the surviving or newly formed (e) Data reporting for banks and institution and the merged or acquired that it purchases, the financial savings associations that are required to institutions or acquired branches, satisfies institution shall assign and report a non- report data on small business, small the criteria included in § 1003.2(g). For universal loan identifier (NULI). The farm, and community development example, A and B merge. The surviving or NULI must be composed of up to 22 lending under CRA. Banks and savings newly formed institution meets the loan characters to identify the covered loan associations that are required to report threshold described in § 1003.2(g)(1)(v)(B) if or application, which: data on small business, small farm, and the surviving or newly formed institution, A, (i) May be letters, numerals, or a community development lending under and B originated a combined total of at least 500 open-end lines of credit in each of the combination of letters and numerals; regulations that implement the (ii) Must be unique within the annual two preceding calendar years. Likewise, the Community Reinvestment Act of 1977 surviving or newly formed institution meets loan/application register in which the (12 U.S.C. 2901 et seq.) shall also collect the asset-size threshold in § 1003.2(g)(1)(i) if covered loan or application is included; the information required by paragraph its assets and the combined assets of A and and (a)(9)(ii) of this section for property B on December 31 of the preceding calendar (iii) Must not include any information located outside MSAs and MDs in year exceeded the threshold described in that could be used to directly identify which the institution has a home or § 1003.2(g)(1)(i). Comment 2(g)–4 discusses a the applicant or borrower. branch office, or outside any MSA. financial institution’s responsibilities during (6) Paragraphs (d)(2) and (3) of this the calendar year of a merger. * * * * * section do not apply to an insured 4. Merger or acquisition—coverage for depository institution that, as of the ■ 5. Effective January 1, 2020, calendar year of merger or acquisition. The supplement I to part 1003, as amended scenarios described below illustrate a preceding December 31, had received a financial institution’s responsibilities for the rating of ‘‘needs to improve record of at 82 FR 43088, September 13, 2017, is further amended as follows: calendar year of a merger or acquisition. For meeting community credit needs’’ purposes of these illustrations, a ‘‘covered ■ during each of its two most recent a. Under Section 1003.2—Definitions, institution’’ means a financial institution, as examinations or a rating of ‘‘substantial revise 2(g) Financial Institution. defined in § 1003.2(g), that is not exempt noncompliance in meeting community ■ b. Revise the heading to Section from reporting under § 1003.3(a), and ‘‘an credit needs’’ on its most recent 1003.3. institution that is not covered’’ means either examination under section 807(b)(2) of ■ c. Under Section 1003.3: an institution that is not a financial institution, as defined in § 1003.2(g), or an the Community Reinvestment Act of ■ i. Revise Paragraph 3(c)(12). institution that is exempt from reporting 1977 (12 U.S.C. 2906(b)(2)). ■ iii. Add paragraph 3(d) Partially under § 1003.3(a). ■ 4. Effective January 1, 2020, § 1003.4 exempt transactions after paragraph i. Two institutions that are not covered is amended by revising paragraphs (a) 3(c)(13). merge. The surviving or newly formed

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institution meets all of the requirements or insured branch of a foreign bank that the end of a calendar year are not reported, necessary to be a covered institution. No data meets the definition of a ‘‘bank’’ under as described in comment 4(a)(8)(i)–14. collection is required for the calendar year of section 3(a)(1) of the Federal Deposit * * * * * the merger (even though the merger creates Insurance Act (12 U.S.C. 1813(a)) is a bank an institution that meets all of the for the purposes of § 1003.2(g). 3(d) Partially Exempt Transactions requirements necessary to be a covered 7. Branches and offices of foreign banks 1. Merger or acquisition—application of institution). When a branch office of an and other entities—treated as nondepository partial exemption thresholds to surviving or institution that is not covered is acquired by financial institutions. A Federal agency, newly formed institution. After a merger or another institution that is not covered, and State-licensed agency, State-licensed acquisition, the surviving or newly formed the acquisition results in a covered uninsured branch of a foreign bank, institution falls below the loan threshold institution, no data collection is required for commercial lending company owned or described in § 1003.3(d)(2) or (3) if it, the calendar year of the acquisition. controlled by a foreign bank, or entity considering the combined lending activity of ii. A covered institution and an institution operating under section 25 or 25A of the the surviving or newly formed institution that is not covered merge. The covered Federal Reserve Act, 12 U.S.C. 601 and 611 and the merged or acquired institutions or institution is the surviving institution, or a (Edge Act and agreement corporations) may acquired branches, falls below the loan threshold described in § 1003.3(d)(2) or (3). new covered institution is formed. For the not meet the definition of ‘‘bank’’ under the For example, A and B merge. The surviving calendar year of the merger, data collection Federal Deposit Insurance Act and may or newly formed institution falls below the is required for covered loans and thereby fail to satisfy the definition of a loan threshold described in § 1003.3(d)(2) if applications handled in the offices of the depository financial institution under merged institution that was previously the surviving or newly formed institution, A, § 1003.2(g)(1). An entity is nonetheless a and B originated a combined total of fewer covered and is optional for covered loans and financial institution if it meets the definition applications handled in offices of the merged than 500 closed-end mortgage loans that are of nondepository financial institution under not excluded from this part pursuant to institution that was previously not covered. § 1003.2(g)(2). When a covered institution acquires a branch § 1003.3(c)(1) through (10) or (c)(13) in each office of an institution that is not covered, * * * * * of the two preceding calendar years. data collection is optional for covered loans Comment 3(d)–3 discusses eligibility for Section 1003.3—Exempt Institutions and partial exemptions during the calendar year and applications handled by the acquired Excluded and Partially Exempt Transactions branch office for the calendar year of the of a merger. acquisition. * * * * * 2. Merger or acquisition—Community iii. A covered institution and an institution 3(c) Excluded Transactions Reinvestment Act examination history. After a merger or acquisition, the surviving or that is not covered merge. The institution * * * * * that is not covered is the surviving newly formed institution is deemed to be ineligible for the partial exemptions pursuant institution, or a new institution that is not Paragraph 3(c)(12) to § 1003.3(d)(6) if either it or any of the covered is formed. For the calendar year of 1. General. Section 1003.3(c)(12) provides merged or acquired institutions received a the merger, data collection is required for that an open-end line of credit is an excluded rating of ‘‘needs to improve record of meeting covered loans and applications handled in transaction if a financial institution community credit needs’’ during each of its offices of the previously covered institution originated fewer than 500 open-end lines of two most recent examinations or a rating of that took place prior to the merger. After the credit in either of the two preceding calendar ‘‘substantial noncompliance in meeting merger date, data collection is optional for years. For example, assume that a bank is a community credit needs’’ on its most recent covered loans and applications handled in financial institution in 2020 under examination under section 807(b)(2) of the the offices of the institution that was § 1003.2(g) because it originated 50 closed- Community Reinvestment Act of 1977 (12 previously covered. When an institution end mortgage loans in 2018, 75 closed-end U.S.C. 2906(b)(2)). Comment 3(d)–3.iii remains not covered after acquiring a branch mortgage loans in 2019, and met all of the discusses eligibility for partial exemptions office of a covered institution, data collection other requirements under § 1003.2(g)(1). Also during the calendar year of a merger when an is required for transactions of the acquired assume that the bank originated 75 and 85 institution that is eligible for a partial branch office that take place prior to the open-end lines of credit in 2018 and 2019, exemption merges with an institution that is acquisition. Data collection by the acquired respectively. The closed-end mortgage loans ineligible for the partial exemption branch office is optional for transactions that the bank originated or purchased, or for (including, for example, an institution that is taking place in the remainder of the calendar which it received applications, during 2020 ineligible for the partial exemptions pursuant year after the acquisition. are covered loans and must be reported, to § 1003.3(d)(6)) and the surviving or newly iv. Two covered institutions merge. The unless they otherwise are excluded formed institution is ineligible for the partial surviving or newly formed institution is a transactions under § 1003.3(c). However, the exemption. covered institution. Data collection is open-end lines of credit that the bank 3. Merger or acquisition—applicability of required for the entire calendar year of the originated or purchased, or for which it partial exemptions during calendar year of merger. The surviving or newly formed received applications, during 2020 are merger or acquisition. The scenarios institution files either a consolidated excluded transactions under § 1003.3(c)(12) described below illustrate the applicability of submission or separate submissions for that and need not be reported. See comments partial exemptions under § 1003.3(d) during calendar year. When a covered institution 4(a)–2 through –4 for guidance about the the calendar year of a merger or acquisition. acquires a branch office of a covered activities that constitute an origination. For purposes of these illustrations, institution, data collection is required for the 2. Optional reporting. A financial ‘‘institution’’ means a financial institution, as entire calendar year of the merger. Data for institution may report applications for, defined in § 1003.2(g), that is not exempt the acquired branch office may be submitted originations of, or purchases of open-end from reporting under § 1003.3(a). Although by either institution. lines of credit that are excluded transactions the scenarios below refer to the partial 5. Originations. Whether an institution is a because the financial institution originated exemption for closed-end mortgage loans financial institution depends in part on fewer than 500 open-end lines of credit in under § 1003.3(d)(2), the same principles whether the institution originated at least 25 either of the two preceding calendar years. apply with respect to the partial exemption closed-end mortgage loans in each of the two However, a financial institution that chooses for open-end lines of credit under preceding calendar years or at least 500 open- to report such excluded applications for, § 1003.3(d)(3). end lines of credit in each of the two originations of, or purchases of open-end i. Assume two institutions that are eligible preceding calendar years. Comments 4(a)–2 lines of credit must report all such for the partial exemption for closed-end through –4 discuss whether activities with applications for open-end lines of credit mortgage loans merge and the surviving or respect to a particular closed-end mortgage which it receives, open-end lines of credit newly formed institution meets all of the loan or open-end line of credit constitute an that it originates, and open-end lines of credit requirements for the partial exemption. The origination for purposes of § 1003.2(g). that it purchases that otherwise would be partial exemption for closed-end mortgage 6. Branches of foreign banks—treated as covered loans for a given calendar year. Note loans applies for the calendar year of the banks. A Federal branch or a State-licensed that applications which remain pending at merger.

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ii. Assume two institutions that are eligible not required for transactions taking place in that it receives, closed-end mortgage loans for the partial exemption for closed-end the remainder of the calendar year after the that it originates, and closed-end mortgage mortgage loans merge and the surviving or acquisition. loans that it purchases. For example, assume newly formed institution does not meet the 4. Originations. Whether applications for that an insured credit union is a financial requirements for the partial exemption. covered loans that an insured depository institution in 2020 under § 1003.2(g) and Collection of optional data for closed-end institution or insured credit union receives, originated, in 2018 and 2019 respectively, mortgage loans is permitted but not required covered loans that it originates, or covered 100 and 200 closed-end mortgage loans that for the calendar year of the merger (even loans that it purchases are partially exempt are not excluded from this part pursuant to though the merger creates an institution that transactions under § 1003.3(d) depends, in § 1003.3(c)(1) through (10) or (c)(13). The does not meet the requirements for the partial part, on whether the institution originated closed-end mortgage loans that the insured exemption for closed-end mortgage loans). fewer than 500 closed-end mortgage loans credit union originated or purchased, or for When a branch office of an institution that that are not excluded from this part pursuant which it received applications, during 2020 is eligible for the partial exemption is to § 1003.3(c)(1) through (10) or (c)(13) in are not excluded transactions under acquired by another institution that is each of the two preceding calendar years or § 1003.3(c)(11). However, due to the partial eligible for the partial exemption, and the fewer than 500 open-end lines of credit that exemption in § 1003.3(d)(2), the insured acquisition results in an institution that is are not excluded from this part pursuant to credit union is not required to collect, record, not eligible for the partial exemption, data § 1003.3(c)(1) through (10) in each of the two or report optional data as defined in collection for closed-end mortgage loans is preceding calendar years. See comments § 1003.3(d)(1)(iii) for the closed-end mortgage permitted but not required for the calendar 4(a)–2 through –4 for guidance about the loans that it originated or purchased, or for year of the acquisition. activities that constitute an origination for which it received applications, for which iii. Assume an institution that is eligible purposes of § 1003.3(d). final action is taken during 2020. See for the partial exemption for closed-end 5. Affiliates. A financial institution that is comments 4(a)–2 through –4 for guidance mortgage loans merges with an institution not itself an insured credit union or an about the activities that constitute an that is ineligible for the partial exemption insured depository institution as defined in origination. and the surviving or newly formed § 1003.3(d)(1)(i) and (ii) is not eligible for the Paragraph 3(d)(3) institution is ineligible for the partial partial exemptions under § 1003.3(d)(1) 1. General. Section 1003.3(d)(3) provides exemption. For the calendar year of the through (3), even if it is owned by or that, except as provided in § 1003.3(d)(6), an merger, collection of optional data as defined affiliated with an insured credit union or an insured depository institution or insured in § 1003.3(d)(1)(iii) for closed-end mortgage insured depository institution. For example, credit union that, in each of the two loans is required for covered loans and an institution that is a subsidiary of an preceding calendar years, originated fewer applications handled in the offices of the insured credit union or insured depository than 500 open-end lines of credit that are not merged institution that was previously institution may not claim a partial exemption excluded from this part pursuant to ineligible for the partial exemption. For the under § 1003.3(d) for its closed-end mortgage § 1003.3(c)(1) through (10) is not required to calendar year of the merger, collection of loans unless the subsidiary institution itself: collect, record, or report optional data as optional data for closed-end mortgage loans i. Is an insured credit union or insured defined in § 1003.3(d)(1)(iii) for applications is permitted but not required for covered depository institution, for open-end lines of credit that it receives, loans and applications handled in the offices ii. In each of the two preceding calendar open-end lines of credit that it originates, and of the merged institution that was previously years originated fewer than 500 closed-end open-end lines of credit that it purchases. See eligible for the partial exemption. When an mortgage loans that are not excluded from § 1003.3(c)(12) and comments 3(c)(12)–1 and institution that is ineligible for the partial this part pursuant to § 1003.3(c)(1) through –2, which provide an exclusion for certain exemption for closed-end mortgage loans (10) or (c)(13), and open-end lines of credit from this part and acquires a branch office of an institution that iii. If the subsidiary is an insured permit voluntary reporting of such is eligible for the partial exemption, depository institution, had not received as of transactions under certain circumstances. See collection of optional data for closed-end the preceding December 31 a rating of ‘‘needs also comments 4(a)–2 through –4 for mortgage loans is permitted but not required to improve record of meeting community guidance about the activities that constitute for covered loans and applications handled credit needs’’ during each of its two most an origination. recent examinations or a rating of by the acquired branch office for the calendar Paragraph 3(d)(4) year of the acquisition. ‘‘substantial noncompliance in meeting 1. General. Section 1003.3(d)(4) provides iv. Assume an institution that is eligible for community credit needs’’ on its most recent that an insured depository institution or the partial exemption for closed-end examination under section 807(b)(2) of the insured credit union may collect, record, and mortgage loans merges with an institution Community Reinvestment Act of 1977 (12 U.S.C. 2906(b)(2)). report optional data as defined in that is ineligible for the partial exemption § 1003.3(d)(1)(iii) for a partially exempt and the surviving or newly formed Paragraph 3(d)(1)(iii) transaction as though the institution were institution is eligible for the partial 1. Optional data. The definition of optional required to do so, provided that, if an exemption. For the calendar year of the data in § 1003.3(d)(1)(iii) identifies the data institution voluntarily reports any data merger, collection of optional data for closed- that are covered by the partial exemptions for pursuant to any of the seven paragraphs end mortgage loans is required for covered certain transactions of insured depository identified in § 1003.3(d)(4)(i) and (ii) loans and applications handled in the offices institutions and insured credit unions under (§ 1003.4(a)(9)(i) and (a)(15), (16), (17), (27), of the previously ineligible institution that § 1003.3(d). If a transaction is not partially (33), and (35)), it also must report all other took place prior to the merger. After the exempt under § 1003.3(d)(2) or (3), a data for the covered loan or application that merger date, collection of optional data for financial institution must collect, record, and would be required by that applicable closed-end mortgage loans is permitted but report optional data as otherwise required paragraph if the transaction were not not required for covered loans and under this part. partially exempt. For example, an insured applications handled in the offices of the depository institution or insured credit union Paragraph 3(d)(2) institution that was previously ineligible for may voluntarily report the existence of a the partial exemption. When an institution 1. General. Section 1003.3(d)(2) provides balloon payment for a partially exempt remains eligible for the partial exemption for that, except as provided in § 1003.3(d)(6), an transaction pursuant to § 1003.4(a)(27), but, if closed-end mortgage loans after acquiring a insured depository institution or insured it does so, it must also report all other data branch office of an institution that is credit union that, in each of the two for the transaction that would be required by ineligible for the partial exemption, preceding calendar years, originated fewer § 1003.4(a)(27) if the transaction were not collection of optional data for closed-end than 500 closed-end mortgage loans that are partially exempt (i.e., whether the transaction mortgage loans is required for transactions of not excluded from this part pursuant to has interest-only payments, negative the acquired branch office that take place § 1003.3(c)(1) through (10) or (c)(13) is not amortization, or other non-amortizing prior to the acquisition. Collection of required to collect, record, or report optional features). optional data for closed-end mortgage loans data as defined in § 1003.3(d)(1)(iii) for 2. Partially exempt transactions within the by the acquired branch office is permitted but applications for closed-end mortgage loans same loan/application register. A financial

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institution may collect, record, and report character sequence it assigns is unique origination but on which actions were optional data for some partially exempt within the institution’s annual loan/ taken—for example, an application that the transactions under § 1003.3(d) in the manner application register in which it appears. A institution denied, that it approved but that specified in § 1003.3(d)(4), even if it does not financial institution should assign only one was not accepted, that it closed for collect, record, and report optional data for NULI to any particular covered loan or incompleteness, or that the applicant other partially exempt transactions under application within each annual loan/ withdrew during the calendar year covered § 1003.3(d). application register, and each NULI should by the loan/application register. A financial 3. Exempt or not applicable. i. If a financial correspond to a single application and institution is required to report data institution would otherwise report that a ensuing loan within the annual loan/ regarding requests under a preapproval transaction is partially exempt pursuant to application register in which the NULI program (as defined in § 1003.2(b)(2)) only if § 1003.3(d) and a particular requirement to appears in the case that the application is the preapproval request is denied, results in report optional data is not applicable to the approved and a loan is originated. A the origination of a home purchase loan, or transaction, the insured depository financial institution may use a NULI more was approved but not accepted. institution or insured credit union complies than once within an annual loan/application iii. If a financial institution acquires with the particular requirement by reporting register only if the NULI refers to the same covered loans in bulk from another either that the transaction is exempt from the loan or application or a loan that ensues from institution (for example, from the receiver for requirement or that the requirement is not an application referred to elsewhere in the a failed institution), but no merger or applicable. For example, assume that an annual loan/application register. acquisition of an institution, or acquisition of insured depository institution or insured Refinancings or applications for refinancing a branch office, is involved, the acquiring credit union originates a partially exempt that are included in same annual loan/ financial institution reports the covered loans reverse mortgage. The requirement to report application register as the loan that is being as purchased loans. lender credits is not applicable to reverse refinanced should be assigned a different iv. A financial institution reports the data mortgages, as comment 4(a)(20)–1 explains. NULI than the loan that is being refinanced. for an application on the loan/application Accordingly, the institution could report An insured depository institution or insured register for the calendar year during which either exempt or not applicable for lender credit union with multiple branches must the application was acted upon even if the credits for the reverse mortgage transaction. ensure that its branches do not use the same institution received the application in a ii. An institution is considered as reporting NULI to refer to multiple covered loans or previous calendar year. data in a data field for purposes of applications within the institution’s same 2. Originations and applications involving § 1003.3(d)(4)(i) and (ii) when it reports not annual loan/application register. more than one institution. Section 1003.4(a) applicable for that data field for a partially 2. NULI—privacy. Section 1003.3(d)(5)(iii) requires a financial institution to collect exempt transaction. For example, assume an prohibits an insured depository institution or certain information regarding applications for insured depository institution or insured insured credit union from including covered loans that it receives and regarding credit union originates a covered loan that is information in the NULI that could be used covered loans that it originates. The eligible for a partial exemption and is made to directly identify the applicant or borrower. following provides guidance on how to primarily for business or commercial Information that could be used to directly report originations and applications purposes. The requirement to report total identify the applicant or borrower includes, involving more than one institution. The but is not limited to, the applicant’s or loan costs or total points and fees is not discussion below assumes that all of the borrower’s name, date of birth, Social applicable to loans made primarily for parties are financial institutions as defined Security number, official government-issued business or commercial purposes, as by § 1003.2(g). The same principles apply if driver’s license or identification number, comments 4(a)(17)(i)–1 and (ii)–1 explain. any of the parties is not a financial alien registration number, government The institution can report not applicable for institution. Comment 4(a)–3 provides passport number, or employer or taxpayer both total loan costs and total points and examples of transactions involving more than identification number. fees, or it can report exempt for both total one institution, and comment 4(a)–4 loan costs and total points and fees for the Paragraph 3(d)(6) discusses how to report actions taken by loan. Pursuant to § 1003.3(d)(4)(ii), the 1. Preceding calendar year. Section agents. institution is not permitted to report not 1003.3(d)(6) refers to the preceding December i. Only one financial institution reports applicable for total loan costs and report 31, which means the December 31 preceding each originated covered loan as an exempt for total points and fees for the the current calendar year. For example, in origination. If more than one institution was business or commercial purpose loan. 2020, the preceding December 31 is involved in the origination of a covered loan, Paragraph 3(d)(4)(i) December 31, 2019. Assume that, as of the financial institution that made the credit 1. State. Section 1003.3(d)(4)(i) provides December 31, 2019, an insured depository decision approving the application before that if an institution eligible for a partial institution received ratings of ‘‘needs to closing or account opening reports the loan exemption under § 1003.3(d)(2) or (3) reports improve record of meeting community credit as an origination. It is not relevant whether the street address, city name, or Zip Code for needs’’ during its two most recent the loan closed or, in the case of an a partially exempt transaction pursuant to examinations under section 807(b)(2) of the application, would have closed in the § 1003.4(a)(9)(i), it reports all data that would Community Reinvestment Act (12 U.S.C. institution’s name. If more than one be required by § 1003.4(a)(9)(i) if the 2906(b)(2)) in 2018 and 2014. Accordingly, in institution approved an application prior to transaction were not partially exempt, 2020, the insured depository institution’s closing or account opening and one of those including the State. An insured depository transactions are not partially exempt institutions purchased the loan after closing, institution or insured credit union that pursuant to § 1003.3(d). the institution that purchased the loan after closing reports the loan as an origination. If reports the State pursuant to § 1003.4(a)(9)(ii) Section 1003.4—Compilation of Reportable a financial institution reports a transaction as or comment 4(a)(9)(ii)–1 for a partially Data exempt transaction without reporting any an origination, it reports all of the 4(a) Data Format and Itemization other data required by § 1003.4(a)(9)(i) is not information required for originations, even if required to report the street address, city 1. General. Except as otherwise provided the covered loan was not initially payable to name, or Zip Code pursuant to in § 1003.3, § 1003.4(a) describes a financial the financial institution that is reporting the § 1003.4(a)(9)(i). institution’s obligation to collect data on covered loan as an origination. applications it received, on covered loans ii. In the case of an application for a Paragraph 3(d)(5) that it originated, and on covered loans that covered loan that did not result in an 1. NULI—uniqueness. For a partially it purchased during the calendar year origination, a financial institution reports the exempt transaction under § 1003.3(d), a covered by the loan/application register. action it took on that application if it made financial institution may report a ULI or a i. A financial institution reports these data a credit decision on the application or was NULI. Section 1003.3(d)(5)(ii) requires an even if the covered loans were subsequently reviewing the application when the insured depository institution or insured sold by the institution. application was withdrawn or closed for credit union that assigns a NULI to a covered ii. A financial institution reports data for incompleteness. It is not relevant whether the loan or application to ensure that the applications that did not result in an financial institution received the application

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from the applicant or from another v. Financial Institution A reviewed an repurchase the covered loan pursuant to the institution, such as a broker, or whether application and made the credit decision to relevant contractual obligations. Financial another financial institution also reviewed approve a covered loan using the Institution B reports the purchase from and reported an action taken on the same underwriting criteria provided by a third Financial Institution A, assuming it is a application. party (e.g., another financial institution, financial institution as defined under 3. Examples—originations and Fannie Mae, or Freddie Mac). The third party § 1003.2(g). Financial Institution A reports applications involving more than one did not review the application and did not the repurchase from Financial Institution B institution. The following scenarios illustrate make a credit decision prior to closing. as a purchase. how an institution reports a particular Financial Institution A was not acting as the ii. In contrast, for purposes of § 1003.4(a), application or covered loan. The illustrations third party’s agent. Financial Institution A a purchase does not include a temporary assume that all of the parties are financial reports the application or origination. If the transfer of a covered loan to an interim institutions as defined by § 1003.2(g). third party purchased the loan and is subject funder or warehouse creditor as part of an However, the same principles apply if any of to Regulation C, the third party reports the interim funding agreement under which the the parties is not a financial institution. loan as a purchase whether or not the third originating financial institution is obligated i. Financial Institution A received an party reviewed the loan after closing. Assume to repurchase the covered loan for sale to a application for a covered loan from an the same facts, except that Financial subsequent investor. Such agreements, often applicant and forwarded that application to Institution A approved the application, and referred to as ‘‘repurchase agreements,’’ are Financial Institution B. Financial Institution the applicant chose not to accept the loan sometimes employed as functional B reviewed the application and approved the from Financial Institution A. Financial equivalents of warehouse lines of credit. loan prior to closing. The loan closed in Institution A reports the application as Under these agreements, the interim funder Financial Institution A’s name. Financial approved but not accepted and the third or warehouse creditor acquires legal title to Institution B purchased the loan from party, assuming the third party is subject to the covered loan, subject to an obligation of Financial Institution A after closing. Regulation C, does not report the application. the originating institution to repurchase at a Financial Institution B was not acting as vi. Financial Institution A reviewed and future date, rather than taking a security Financial Institution A’s agent. Since made the credit decision on an application interest in the covered loan as under the Financial Institution B made the credit based on the criteria of a third-party insurer terms of a more conventional warehouse line decision prior to closing, Financial or guarantor (for example, a government or of credit. To illustrate, assume Financial Institution B reports the transaction as an private insurer or guarantor). Financial Institution A has an interim funding origination, not as a purchase. Financial Institution A reports the action taken on the agreement with Financial Institution B to Institution A does not report the transaction. application. enable Financial Institution B to originate ii. Financial Institution A received an vii. Financial Institution A received an loans. Assume further that Financial application for a covered loan from an application for a covered loan and forwarded Institution B originates a covered loan and applicant and forwarded that application to it to Financial Institutions B and C. Financial that, pursuant to this agreement, Financial Financial Institution B. Financial Institution Institution A made a credit decision, acting Institution A takes a temporary transfer of the B reviewed the application before the loan as Financial Institution D’s agent, and covered loan until Financial Institution B would have closed, but the application did approved the application. The applicant did arranges for the sale of the covered loan to not result in an origination because Financial not accept the loan from Financial Institution a subsequent investor and that Financial Institution B denied the application. D. Financial Institution D reports the Institution B repurchases the covered loan to Financial Institution B was not acting as application as approved but not accepted. enable it to complete the sale to the Financial Institution A’s agent. Since Financial Institution A does not report the subsequent investor (alternatively, Financial Financial Institution B made the credit application. Financial Institution B made a Institution A may transfer the covered loan decision, Financial Institution B reports the credit decision, approving the application, directly to the subsequent investor at application as a denial. Financial Institution the applicant accepted the offer of credit Financial Institution B’s direction, pursuant A does not report the application. If, under from Financial Institution B, and credit was to the interim funding agreement). The the same facts, the application was extended. Financial Institution B reports the subsequent investor could be, for example, a withdrawn before Financial Institution B origination. Financial Institution C made a financial institution or other entity that made a credit decision, Financial Institution credit decision and denied the application. intends to hold the loan in portfolio, a GSE B would report the application as withdrawn Financial Institution C reports the or other securitizer, or a financial institution and Financial Institution A would not report application as denied. or other entity that intends to package and the application. 4. Agents. If a financial institution made sell multiple loans to a GSE or other iii. Financial Institution A received an the credit decision on a covered loan or securitizer. In this example, the temporary application for a covered loan from an application through the actions of an agent, transfer of the covered loan from Financial applicant and approved the application the institution reports the application or Institution B to Financial Institution A is not a purchase, and any subsequent transfer back before closing the loan in its name. Financial origination. State law determines whether to Financial Institution B for delivery to the Institution A was not acting as Financial one party is the agent of another. For subsequent investor is not a purchase, for Institution B’s agent. Financial Institution B example, acting as Financial Institution A’s purposes of § 1003.4(a). Financial Institution purchased the covered loan from Financial agent, Financial Institution B approved an B reports the origination of the covered loan Institution A. Financial Institution B did not application prior to closing and a covered as well as its sale to the subsequent investor. review the application before closing. loan was originated. Financial Institution A If the subsequent investor is a financial Financial Institution A reports the loan as an reports the loan as an origination. institution under § 1003.2(g), it reports a origination. Financial Institution B reports 5. Purchased loans. i. A financial purchase of the covered loan pursuant to institution is required to collect data the loan as a purchase. § 1003.4(a), regardless of whether it acquired iv. Financial Institution A received an regarding covered loans it purchases. For the covered loan from Financial Institution B application for a covered loan from an purposes of § 1003.4(a), a purchase includes or directly from Financial Institution A. applicant. If approved, the loan would have a repurchase of a covered loan, regardless of closed in Financial Institution B’s name. whether the institution chose to repurchase Paragraph 4(a)(1)(i) Financial Institution A denied the the covered loan or was required to 1. ULI—uniqueness. Section application without sending it to Financial repurchase the covered loan because of a 1003.4(a)(1)(i)(B)(2) requires a financial Institution B for approval. Financial contractual obligation and regardless of institution that assigns a universal loan Institution A was not acting as Financial whether the repurchase occurs within the identifier (ULI) to each covered loan or Institution B’s agent. Since Financial same calendar year that the covered loan was application (except as provided in Institution A made the credit decision before originated or in a different calendar year. For § 1003.4(a)(1)(i)(D) and (E)) to ensure that the the loan would have closed, Financial example, assume that Financial Institution A character sequence it assigns is unique Institution A reports the application. originates or purchases a covered loan and within the institution and used only for the Financial Institution B does not report the then sells it to Financial Institution B, who covered loan or application. A financial application. later requires Financial Institution A to institution should assign only one ULI to any

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particular covered loan or application, and register pursuant to § 1003.5(a)(1)(ii), even institution need not choose the same each ULI should correspond to a single though Institution A has not yet submitted its approach for its entire HMDA submission, it application and ensuing loan in the case that annual loan/application register pursuant to should be generally consistent (such as by the application is approved and a loan is § 1003.5(a)(1)(i). A financial institution that routinely using one approach within a originated. A financial institution may use a purchases a covered loan and is ineligible for particular division of the institution or for a ULI that was reported previously to refer a partial exemption with respect to the category of loans). If the financial institution only to the same loan or application for purchased covered loan must assign it a ULI chooses to report the date shown on the which the ULI was used previously or a loan pursuant to § 1003.4(a)(1)(i) and report it application form and the institution retains that ensues from an application for which the pursuant to § 1003.5(a)(1)(i) or (ii), whichever multiple versions of the application form, the ULI was used previously. A financial is applicable, if the covered loan was not institution reports the date shown on the first institution may not report an application for assigned a ULI by the financial institution application form satisfying the application a covered loan in 2030 using the same ULI that originated the loan because, for example, definition provided under § 1003.2(b). that was reported for a covered loan that was the loan was originated prior to January 1, 2. Application date—indirect application. originated in 2020. Similarly, refinancings or 2018, the loan was originated by an For an application that was not submitted applications for refinancing should be institution not required to report under this directly to the financial institution, the assigned a different ULI than the loan that is part, or the loan was assigned a non- institution may report the date the being refinanced. A financial institution with universal loan identifier (NULI) under application was received by the party that multiple branches must ensure that its § 1003.3(d)(5) rather than a ULI by the loan initially received the application, the date the branches do not use the same ULI to refer to originator. application was received by the institution, multiple covered loans or applications. 4. ULI—reinstated or reconsidered or the date shown on the application form. 2. ULI—privacy. Section application. A financial institution may, at Although an institution need not choose the 1003.4(a)(1)(i)(B)(3) prohibits a financial its option, report a ULI previously reported same approach for its entire HMDA institution from including information that under this part if, during the same calendar submission, it should be generally consistent could be used to directly identify the year, an applicant asks the institution to (such as by routinely using one approach applicant or borrower in the identifier that it reinstate a counteroffer that the applicant within a particular division of the institution assigns for the application or covered loan of previously did not accept or asks the or for a category of loans). the applicant or borrower. Information that financial institution to reconsider an 3. Application date—reinstated could be used to directly identify the application that was previously denied, application. If, within the same calendar applicant or borrower includes, but is not withdrawn, or closed for incompleteness. For year, an applicant asks a financial institution limited to, the applicant’s or borrower’s example, if a financial institution reports a to reinstate a counteroffer that the applicant name, date of birth, Social Security number, denied application in its second-quarter 2020 previously did not accept (or asks the official government-issued driver’s license or data submission, pursuant to institution to reconsider an application that identification number, alien registration § 1003.5(a)(1)(ii), but then reconsiders the was denied, withdrawn, or closed for number, government passport number, or application, resulting in an origination in the incompleteness), the institution may treat employer or taxpayer identification number. third quarter of 2020, the financial institution that request as the continuation of the earlier 3. ULI—purchased covered loan. If a may report the origination in its third-quarter transaction using the same ULI or NULI or as financial institution has previously assigned 2020 data submission using the same ULI a new transaction with a new ULI or NULI. a covered loan with a ULI or reported a that was reported for the denied application If the institution treats the request for covered loan with a ULI under this part, a in its second-quarter 2020 data submission, reinstatement or reconsideration as a new financial institution that purchases that so long as the financial institution treats the transaction, it reports the date of the request covered loan must report the same ULI that origination as the same transaction for as the application date. If the institution does was previously assigned or reported unless reporting. However, a financial institution not treat the request for reinstatement or the purchase of the covered loan is a partially may not use a ULI previously reported if it reconsideration as a new transaction, it exempt transaction under § 1003.3(d). For reinstates or reconsiders an application that reports the original application date. example, if a financial institution that was reported in a prior calendar year. For Paragraph 4(a)(2) submits an annual loan/application register example, if a financial institution reports a denied application that is not partially 1. Loan type—general. If a covered loan is pursuant to § 1003.5(a)(1)(i) originates a not, or in the case of an application would covered loan that is purchased by a financial exempt in its fourth-quarter 2020 data submission, pursuant to § 1003.5(a)(1)(ii), but not have been, insured by the Federal institution that also submits an annual loan/ Housing Administration, guaranteed by the application register pursuant to then reconsiders the application, resulting in an origination that is not partially exempt in Department of Veterans Affairs, or § 1003.5(a)(1)(i), the financial institution that guaranteed by the Rural Housing Service or purchases the covered loan must report the the first quarter of 2021, the financial institution reports a denied application the Farm Service Agency, an institution purchase of the covered loan using the same complies with § 1003.4(a)(2) by reporting the ULI that was reported by the originating under the original ULI in its fourth-quarter 2020 data submission and an origination covered loan as not insured or guaranteed by financial institution if the purchase is not a with a different ULI in its first-quarter 2021 the Federal Housing Administration, partially exempt transaction. If a financial data submission, pursuant to Department of Veterans Affairs, Rural institution that originates a covered loan has § 1003.5(a)(1)(ii). Housing Service, or Farm Service Agency. previously assigned the covered loan with a 5. ULI—check digit. Section ULI under this part but has not yet reported Paragraph 4(a)(3) 1003.4(a)(1)(i)(C) requires that the two right- the covered loan, a financial institution that 1. Purpose—statement of applicant. A most characters in the ULI represent the purchases that covered loan must report the financial institution may rely on the oral or check digit. Appendix C prescribes the same ULI that was previously assigned if the written statement of an applicant regarding requirements for generating a check digit and the proposed use of covered loan proceeds. purchase is not a partially exempt validating a ULI. For example, a lender could use a check-box transaction. For example, if a financial 6. NULI. For a partially exempt transaction or a purpose line on a loan application to institution that submits an annual loan/ under § 1003.3(d), a financial institution may determine whether the applicant intends to application register pursuant to report a ULI or a NULI. See § 1003.3(d)(5) use covered loan proceeds for home § 1003.5(a)(1)(i) (Institution A) originates a and comments 3(d)(5)–1 and –2 for guidance covered loan that is purchased by a financial on the NULI. improvement purposes. If an applicant institution that submits a quarterly loan/ provides no statement as to the proposed use application register pursuant to Paragraph 4(a)(1)(ii) of covered loan proceeds and the covered § 1003.5(a)(1)(ii) (Institution B) and 1. Application date—consistency. Section loan is not a home purchase loan, cash-out Institution A assigned a ULI to the loan, then 1003.4(a)(1)(ii) requires that, in reporting the refinancing, or refinancing, a financial unless the purchase is a partially exempt date of application, a financial institution institution reports the covered loan as for a transaction Institution B must report the ULI report the date it received the application, as purpose other than home purchase, home that was assigned by Institution A on defined under § 1003.2(b), or the date shown improvement, refinancing, or cash-out Institution B’s quarterly loan/application on the application form. Although a financial refinancing for purposes of § 1003.4(a)(3).

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2. Purpose—refinancing and cash-out appropriate. See comment 4(a)(3)–2. If a other than a home purchase loan; an refinancing. Section 1003.4(a)(3) requires a covered loan is a home improvement loan as application for a home purchase loan or a financial institution to report whether a well as for another purpose, but the covered covered loan that is a home purchase loan covered loan is, or an application is for, a loan is not a home purchase loan, a secured by a multifamily dwelling; an refinancing or a cash-out refinancing. A refinancing, or cash-out refinancing, an application or covered loan that is an open- financial institution reports a covered loan or institution complies with § 1003.4(a)(3) by end line of credit or a reverse mortgage; or an application as a cash-out refinancing if it reporting the covered loan as a home an application that is denied, withdrawn by is a refinancing as defined by § 1003.2(p) and improvement loan. See comment 2(i)–1. the applicant, or closed for incompleteness. the institution considered it to be a cash-out 4. Purpose—other. If a covered loan is not, Paragraph 4(a)(5) refinancing in processing the application or or an application is not for, a home purchase setting the terms (such as the interest rate or loan, a home improvement loan, a 1. Modular homes and prefabricated origination charges) under its guidelines or refinancing, or a cash-out refinancing, a components. Covered loans or applications an investor’s guidelines. For example: financial institution complies with related to modular homes should be reported i. Assume a financial institution considers § 1003.4(a)(3) by reporting the covered loan with a construction method of site-built, an application for a loan product to be a or application as for a purpose other than regardless of whether they are on-frame or cash-out refinancing under an investor’s home purchase, home improvement, off-frame modular homes. Modular homes guidelines because of the amount of cash refinancing, or cash-out refinancing. For comply with local or other recognized received by the borrower at closing or example, if a covered loan is for the purpose buildings codes rather than standards account opening. Assume also that under the of paying educational expenses, the financial established by the National Manufactured investor’s guidelines, the applicant qualifies institution complies with § 1003.4(a)(3) by Housing Construction and Safety Standards for the loan product and the financial reporting the covered loan as for a purpose Act, 42 U.S.C. 5401 et seq. Modular homes institution approves the application, other than home purchase, home are not required to have HUD Certification originates the covered loan, and sets the improvement, refinancing, or cash-out Labels under 24 CFR 3280.11 or data plates terms of the covered loan consistent with the refinancing. Section 1003.4(a)(3) also under 24 CFR 3280.5. Modular homes may loan product. In this example, the financial requires an institution to report a covered have a certification from a State licensing institution would report the covered loan as loan or application as for a purpose other agency that documents compliance with a cash-out refinancing for purposes of than home purchase, home improvement, State or other applicable building codes. On- § 1003.4(a)(3). refinancing, or cash-out refinancing if it is a frame modular homes are constructed on permanent metal chassis similar to those ii. Assume a financial institution does not refinancing but, under the terms of the used in manufactured homes. The chassis are consider an application for a covered loan to agreement, the financial institution was not removed on site and are secured to the be a cash-out refinancing under its own unconditionally obligated to refinance the foundation. Off-frame modular homes guidelines because the amount of cash obligation subject to conditions within the typically have floor construction similar to received by the borrower does not exceed a borrower’s control. the construction of other site-built homes, certain threshold. Assume also that the 5. Purpose—business or commercial and the construction typically includes institution approves the application, purpose loans. If a covered loan primarily is wooden floor joists and does not include originates the covered loan, and sets the for a business or commercial purpose as permanent metal chassis. Dwellings built terms of the covered loan consistent with its described in § 1003.3(c)(10) and comment 3(c)(10)–2 and is a home purchase loan, using prefabricated components assembled at own guidelines applicable to refinancings the dwelling’s permanent site should also be other than cash-out refinancings. In this home improvement loan, or a refinancing, § 1003.4(a)(3) requires the financial reported with a construction method of site- example, the financial institution would built. report the covered loan as a refinancing for institution to report the applicable loan purpose. If a loan primarily is for a business 2. Multifamily dwelling. For a covered loan purposes of § 1003.4(a)(3). or an application for a covered loan related iii. Assume a financial institution does not or commercial purpose but is not a home purchase loan, home improvement loan, or a to a multifamily dwelling, the financial distinguish between a cash-out refinancing institution should report the construction and a refinancing under its own guidelines, refinancing, the loan is an excluded transaction under § 1003.3(c)(10). method as site-built unless the multifamily and sets the terms of all refinancings without dwelling is a manufactured home regard to the amount of cash received by the 6. Purpose—purchased loans. For purchased covered loans where origination community, in which case the financial borrower at closing or account opening, and institution should report the construction does not offer loan products under investor took place prior to January 1, 2018, a financial institution complies with method as manufactured home. guidelines. In this example, the financial 3. Multiple properties. See comment institution reports all covered loans and § 1003.4(a)(3) by reporting that the requirement is not applicable. 4(a)(9)–2 regarding transactions involving applications for covered loans that are multiple properties with more than one defined by § 1003.2(p) as refinancings for Paragraph 4(a)(4) property taken as security. purposes of § 1003.4(a)(3). 1. Request under a preapproval program. Paragraph 4(a)(6) 3. Purpose—multiple-purpose loan. Section 1003.4(a)(4) requires a financial Section 1003.4(a)(3) requires a financial institution to report whether an application 1. Multiple properties. See comment institution to report the purpose of a covered or covered loan involved a request for a 4(a)(9)–2 regarding transactions involving loan or application. If a covered loan is a preapproval of a home purchase loan under multiple properties with more than one home purchase loan as well as a home a preapproval program as defined by property taken as security. improvement loan, a refinancing, or a cash- § 1003.2(b)(2). If an application or covered 2. Principal residence. Section 1003.4(a)(6) out refinancing, an institution complies with loan did not involve a request for a requires a financial institution to identify § 1003.4(a)(3) by reporting the loan as a home preapproval of a home purchase loan under whether the property to which the covered purchase loan. If a covered loan is a home a preapproval program as defined by loan or application relates is or will be used improvement loan as well as a refinancing or § 1003.2(b)(2), a financial institution as a residence that the applicant or borrower cash-out refinancing, but the covered loan is complies with § 1003.4(a)(4) by reporting that physically occupies and uses, or will occupy not a home purchase loan, an institution the application or covered loan did not and use, as his or her principal residence. For complies with § 1003.4(a)(3) by reporting the involve such a request, regardless of whether purposes of § 1003.4(a)(6), an applicant or covered loan as a refinancing or a cash-out the institution has such a program and the borrower can have only one principal refinancing, as appropriate. If a covered loan applicant did not apply through that program residence at a time. Thus, a vacation or other is a refinancing or cash-out refinancing as or the institution does not have a preapproval second home would not be a principal well as for another purpose, such as for the program as defined by § 1003.2(b)(2). residence. However, if an applicant or purpose of paying educational expenses, but 2. Scope of requirement. A financial borrower buys or builds a new dwelling that the covered loan is not a home purchase institution reports that the application or will become the applicant’s or borrower’s loan, an institution complies with covered loan did not involve a preapproval principal residence within a year or upon the § 1003.4(a)(3) by reporting the covered loan request for a purchased covered loan; an completion of construction, the new dwelling as a refinancing or a cash-out refinancing, as application or covered loan for any purpose is considered the principal residence for

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purposes of applying this definition to a granted. If an applicant does not accept a credit decision on the application prior to particular transaction. counteroffer or fails to respond, the closing or account opening, or if the financial 3. Second residences. Section 1003.4(a)(6) institution reports the amount initially institution did make a credit decision on the requires a financial institution to identify requested. application prior to closing or account whether the property to which the loan or 2. Covered loan amount—application opening, but is repurchasing the loan from application relates is or will be used as a approved but not accepted or preapproval another entity that the loan was sold to. See second residence. For purposes of request approved but not accepted. A comment 4(a)–5. See comments 4(a)–2 § 1003.4(a)(6), a property is a second financial institution reports the covered loan through –4 for guidance on transactions in residence of an applicant or borrower if the amount that was approved. which more than one financial institution is property is or will be occupied by the 3. Covered loan amount—preapproval involved. applicant or borrower for a portion of the request denied, application denied, closed 3. Action taken—application approved but year and is not the applicant’s or borrower’s for incompleteness or withdrawn. For a not accepted. A financial institution reports principal residence. For example, if a person preapproval request that was denied, and for application approved but not accepted if the purchases a property, occupies the property an application that was denied, closed for financial institution made a credit decision for a portion of the year, and rents the incompleteness, or withdrawn, a financial approving the application before closing or property for the remainder of the year, the institution reports the amount for which the account opening, subject solely to property is a second residence for purposes applicant applied. outstanding conditions that are customary of § 1003.4(a)(6). Similarly, if a couple 4. Covered loan amount—multiple-purpose commitment or closing conditions, but the occupies a property near their place of loan. A financial institution reports the entire applicant or the party that initially received employment on weekdays, but the couple amount of the covered loan, even if only a the application fails to respond to the returns to their principal residence on part of the proceeds is intended for home financial institution’s approval within the weekends, the property near the couple’s purchase, home improvement, or refinancing. specified time, or the closed-end mortgage place of employment is a second residence 5. Covered loan amount—closed-end loan was not otherwise consummated or the for purposes of § 1003.4(a)(6). mortgage loan. For a closed-end mortgage account was not otherwise opened. See 4. Investment properties. Section loan, other than a purchased loan, an comment 4(a)(8)(i)–13. 1003.4(a)(6) requires a financial institution to assumption, or a reverse mortgage, a financial 4. Action taken—application denied. A identify whether the property to which the institution reports the amount to be repaid as financial institution reports that the covered loan or application relates is or will disclosed on the legal obligation. For a application was denied if it made a credit be used as an investment property. For purchased closed-end mortgage loan or an decision denying the application before an purposes of § 1003.4(a)(6), a property is an assumption of a closed-end mortgage loan, a applicant withdraws the application or the investment property if the borrower does not, financial institution reports the unpaid file is closed for incompleteness. See or the applicant will not, occupy the principal balance at the time of purchase or comments 4(a)–2 through –4 for guidance on property. For example, if a person purchases assumption. transactions in which more than one a property, does not occupy the property, and 6. Covered loan amount—open-end line of institution is involved. generates income by renting the property, the credit. For an open-end line of credit, a 5. Action taken—application withdrawn. A property is an investment property for financial institution reports the entire financial institution reports that the purposes of § 1003.4(a)(6). Similarly, if a amount of credit available to the borrower application was withdrawn when the person purchases a property, does not under the terms of the open-end plan, application is expressly withdrawn by the occupy the property, and does not generate including a purchased open-end line of applicant before the financial institution income by renting the property, but intends credit and an assumption of an open-end line makes a credit decision denying the to generate income by selling the property, of credit, but not for a reverse mortgage open- application, before the financial institution the property is an investment property for end line of credit. makes a credit decision approving the purposes of § 1003.4(a)(6). Section 7. Covered loan amount—refinancing. For application, or before the file is closed for 1003.4(a)(6) requires a financial institution to a refinancing, a financial institution reports incompleteness. A financial institution also identify a property as an investment property the amount of credit extended under the reports application withdrawn if the if the borrower or applicant does not or will terms of the new debt obligation. financial institution provides a conditional not occupy the property, even if the borrower 8. Covered loan amount—home approval specifying underwriting or or applicant does not consider the property improvement loan. A financial institution creditworthiness conditions, pursuant to as owned for investment purposes. For reports the entire amount of a home comment 4(a)(8)(i)–13, and the application is example, if a corporation purchases a improvement loan, even if only a part of the expressly withdrawn by the applicant before property that is a dwelling under § 1003.2(f), proceeds is intended for home improvement. the applicant satisfies all specified that it does not occupy, but that is for the 9. Covered loan amount—non-federally underwriting or creditworthiness conditions. long-term residential use of its employees, insured reverse mortgage. A financial A preapproval request that is withdrawn is the property is an investment property for institution reports the initial principal limit not reportable under HMDA. See § 1003.4(a). purposes of § 1003.4(a)(6), even if the of a non-federally insured reverse mortgage 6. Action taken—file closed for corporation considers the property as owned as set forth in § 1003.4(a)(7)(iii). incompleteness. A financial institution reports that the file was closed for for business purposes rather than investment Paragraph 4(a)(8)(i) purposes, does not generate income by incompleteness if the financial institution renting the property, and does not intend to 1. Action taken—covered loan originated. sent a written notice of incompleteness under generate income by selling the property at A financial institution reports that the Regulation B, 12 CFR 1002.9(c)(2), and the some point in time. If the property is for covered loan was originated if the financial applicant did not respond to the request for transitory use by employees, the property institution made a credit decision approving additional information within the period of would not be considered a dwelling under the application before closing or account time specified in the notice before the § 1003.2(f). See comment 2(f)–3. opening and that credit decision results in an applicant satisfies all underwriting or 5. Purchased covered loans. For purchased extension of credit. The same is true for an creditworthiness conditions. See comment covered loans, a financial institution may application that began as a request for a 4(a)(8)(i)–13. If a financial institution then report principal residence unless the loan preapproval that subsequently results in a provides a notification of adverse action on documents or application indicate that the covered loan being originated. See comments the basis of incompleteness under Regulation property will not be occupied as a principal 4(a)–2 through –4 for guidance on B, 12 CFR 1002.9(c)(1)(i), the financial residence. transactions in which more than one institution may report the action taken as institution is involved. either file closed for incompleteness or Paragraph 4(a)(7) 2. Action taken—covered loan purchased. application denied. A preapproval request 1. Covered loan amount—counteroffer. If A financial institution reports that the that is closed for incompleteness is not an applicant accepts a counteroffer for an covered loan was purchased if the covered reportable under HMDA. See § 1003.4(a) and amount different from the amount for which loan was purchased by the financial comment 4(a)–1.ii. the applicant applied, the financial institution after closing or account opening 7. Action taken—preapproval request institution reports the covered loan amount and the financial institution did not make a denied. A financial institution reports that

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the preapproval request was denied if the reporting requirements when a covered loan underwriting conditions concerning application was a request for a preapproval is repurchased by the originating financial applicant creditworthiness, including under a preapproval program as defined in institution. documentation or verification of income or § 1003.2(b)(2) and the institution made a 13. Action taken—conditional approvals. If assets. credit decision denying the preapproval an institution issues an approval other than 14. Action taken—pending applications. request. a commitment pursuant to a preapproval An institution does not report any covered 8. Action taken—preapproval request program as defined under § 1003.2(b)(2), and loan application still pending at the end of approved but not accepted. A financial that approval is subject to the applicant the calendar year; it reports that application institution reports that the preapproval meeting certain conditions, the institution on its loan/application register for the year in request was approved but not accepted if the reports the action taken as provided below which final action is taken. application was a request for a preapproval dependent on whether the conditions are Paragraph 4(a)(8)(ii) under a preapproval program as defined in solely customary commitment or closing § 1003.2(b)(2) and the institution made a conditions or if the conditions include any 1. Action taken date—general. A financial credit decision approving the preapproval underwriting or creditworthiness conditions. institution reports the date of the action request but the application did not result in i. Action taken examples. If the approval taken. a covered loan originated by the financial is conditioned on satisfying underwriting or 2. Action taken date—applications denied institution. creditworthiness conditions and they are not and files closed for incompleteness. For 9. Action taken—counteroffers. If a met, the institution reports the action taken applications, including requests for a financial institution makes a counteroffer to as a denial. If, however, the conditions preapproval, that are denied or for files lend on terms different from the applicant’s involve submitting additional information closed for incompleteness, the financial initial request (for example, for a shorter loan about underwriting or creditworthiness that institution reports either the date the action maturity, with a different interest rate, or in the institution needs to make the credit was taken or the date the notice was sent to a different amount) and the applicant decision, and the institution has sent a the applicant. declines to proceed with the counteroffer or written notice of incompleteness under 3. Action taken date—application fails to respond, the institution reports the Regulation B, 12 CFR 1002.9(c)(2), and the withdrawn. For applications withdrawn, the financial institution may report the date the action taken as a denial on the original terms applicant did not respond within the period express withdrawal was received or the date requested by the applicant. If the applicant of time specified in the notice, the institution shown on the notification form in the case of agrees to proceed with consideration of the reports the action taken as file closed for a written withdrawal. financial institution’s counteroffer, the incompleteness. See comment 4(a)(8)(i)–6. If 4. Action taken date—approved but not financial institution reports the action taken the conditions are solely customary accepted. For a covered loan approved by an as the disposition of the application based on commitment or closing conditions and the institution but not accepted by the applicant, the terms of the counteroffer. For example, conditions are not met, the institution reports the institution reports any reasonable date, assume a financial institution makes a the action taken as approved but not such as the approval date, the deadline for counteroffer, the applicant agrees to proceed accepted. If all the conditions (underwriting, accepting the offer, or the date the file was with the terms of the counteroffer, and the creditworthiness, or customary commitment closed. Although an institution need not financial institution then makes a credit or closing conditions) are satisfied and the choose the same approach for its entire decision approving the application institution agrees to extend credit but the HMDA submission, it should be generally conditional on satisfying underwriting or covered loan is not originated, the institution consistent (such as by routinely using one creditworthiness conditions, and the reports the action taken as application approach within a particular division of the applicant expressly withdraws before approved but not accepted. If the applicant institution or for a category of covered loans). satisfying all underwriting or expressly withdraws before satisfying all 5. Action taken date—originations. For creditworthiness conditions and before the underwriting or creditworthiness conditions covered loan originations, including a institution denies the application or closes and before the institution denies the preapproval request that leads to an the file for incompleteness. The financial application or closes the file for origination by the financial institution, an institution reports the action taken as incompleteness, the institution reports the institution generally reports the closing or application withdrawn in accordance with action taken as application withdrawn. If all account opening date. For covered loan comment 4(a)(8)(i)–13.i. Similarly, assume a underwriting and creditworthiness originations that an institution acquires from financial institution makes a counteroffer, the conditions have been met, and the a party that initially received the application, applicant agrees to proceed with outstanding conditions are solely customary the institution reports either the closing or consideration of the counteroffer, and the commitment or closing conditions and the account opening date, or the date the financial institution provides a conditional applicant expressly withdraws before the institution acquired the covered loan from approval stating the conditions to be met to covered loan is originated, the institution the party that initially received the originate the counteroffer. The financial reports the action taken as application application. If the disbursement of funds institution reports the action taken on the approved but not accepted. takes place on a date later than the closing application in accordance with comment ii. Customary commitment or closing or account opening date, the institution may 4(a)(8)(i)–13 regarding conditional approvals. conditions. Customary commitment or use the date of initial disbursement. For a 10. Action taken—rescinded transactions. closing conditions include, for example: A construction/permanent covered loan, the If a borrower rescinds a transaction after clear-title requirement, an acceptable institution reports either the closing or closing and before a financial institution is property survey, acceptable title insurance account opening date, or the date the covered required to submit its loan/application binder, clear termite inspection, a loan converts to the permanent financing. register containing the information for the subordination agreement from another Although an institution need not choose the transaction under § 1003.5(a), the institution lienholder, and, where the applicant plans to same approach for its entire HMDA reports the transaction as an application that use the proceeds from the sale of one home submission, it should be generally consistent was approved but not accepted. to purchase another, a settlement statement (such as by routinely using one approach 11. Action taken—purchased covered showing adequate proceeds from the sale. within a particular division of the institution loans. An institution reports the covered iii. Underwriting or creditworthiness or for a category of covered loans). loans that it purchased during the calendar conditions. Underwriting or creditworthiness Notwithstanding this flexibility regarding the year. An institution does not report the conditions include, for example: Conditions use of the closing or account opening date in covered loans that it declined to purchase, that constitute a counter-offer, such as a connection with reporting the date action unless, as discussed in comments 4(a)–2 demand for a higher down-payment; was taken, the institution must report the through –4, the institution reviewed the satisfactory debt-to-income or loan-to-value origination as occurring in the year in which application prior to closing, in which case it ratios, a determination of need for private the origination goes to closing or the account reports the application or covered loan mortgage insurance, or a satisfactory is opened. according to comments 4(a)–2 through –4. appraisal requirement; or verification or 6. Action taken date—loan purchased. For 12. Action taken—repurchased covered confirmation, in whatever form the covered loans purchased, a financial loans. See comment 4(a)–5 regarding institution requires, that the applicant meets institution reports the date of purchase.

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Paragraph 4(a)(9) institution reports the information required Paragraph 4(a)(9)(ii) 1. Multiple properties with one property by § 1003.4(a)(9) in the same manner 1. Optional reporting. Section taken as security. If a covered loan is related described in comment 4(a)(9)–2. 1003.4(a)(9)(ii) requires a financial institution to more than one property, but only one 4. Loans purchased from another to report the State, county, and census tract property is taken as security (or, in the case institution. The requirement to report the of the property securing the covered loan or, of an application, proposed to be taken as property location information required by in the case of an application, proposed to security), a financial institution reports the § 1003.4(a)(9) applies not only to applications secure the covered loan if the property is information required by § 1003.4(a)(9) for the and originations but also to purchased located in an MSA or MD in which the property taken as or proposed to be taken as covered loans. financial institution has a home or branch security. A financial institution does not 5. Manufactured home. If the site of a office or if the institution is subject to report the information required by manufactured home has not been identified, § 1003.4(e). Section 1003.4(a)(9)(ii)(C) further § 1003.4(a)(9) for the property or properties a financial institution complies by reporting limits the requirement to report census tract related to the loan that are not taken as or that the information required by to covered loans secured by or applications proposed to be taken as security. For § 1003.4(a)(9) is not applicable. proposed to be secured by properties located example, if a covered loan is secured by in counties with a population of more than Paragraph 4(a)(9)(i) property A, and the proceeds are used to 30,000 according to the most recent purchase or rehabilitate (or to refinance home 1. General. Except for partially exempt decennial census conducted by the U.S. purchase or home improvement loans related transactions under § 1003.3(d), Census Bureau. For transactions for which to) property B, the institution reports the § 1003.4(a)(9)(i) requires a financial State, county, or census tract reporting is not information required by § 1003.4(a)(9) for institution to report the property address of required under § 1003.4(a)(9)(ii) or (e), property A and does not report the the location of the property securing a financial institutions may report that the information required by § 1003.4(a)(9) for covered loan or, in the case of an application, requirement is not applicable, or they may property B. proposed to secure a covered loan. The voluntarily report the State, county, or 2. Multiple properties with more than one address should correspond to the property census tract information. property taken as security. If more than one identified on the legal obligation related to Paragraph 4(a)(9)(ii)(A) property is taken or, in the case of an the covered loan. For applications that did 1. Applications—State not provided. When application, proposed to be taken as security not result in an origination, the address reporting an application, a financial for a single covered loan, a financial should correspond to the location of the institution complies with § 1003.4(a)(9)(ii)(A) institution reports the covered loan or property proposed to secure the loan as by reporting that the requirement is not application in a single entry on its loan/ identified by the applicant. For example, applicable if the State in which the property application register and provides the assume a loan is secured by a property is located was not known before the information required by § 1003.4(a)(9) for one located at 123 Main Street, and the of the properties taken as security that application was denied, withdrawn, or applicant’s or borrower’s mailing address is closed for incompleteness. contains a dwelling. A financial institution a post office box. The financial institution does not report information about the other should not report the post office box, and Paragraph 4(a)(9)(ii)(B) properties taken as security. If an institution should report 123 Main Street. 1. General. A financial institution complies is required to report specific information 2. Property address—format. A financial by reporting the five-digit Federal about the property identified in institution complies with the requirements in Information Processing Standards (FIPS) § 1003.4(a)(9), the institution reports the § 1003.4(a)(9)(i) by reporting the following numerical county code. information that relates to the property information about the physical location of 2. Applications—county not provided. identified in § 1003.4(a)(9) (or, if the the property securing the loan. When reporting an application, a financial transaction is partially exempt under i. Street address. When reporting the street institution complies with § 1003.4(a)(9)(ii)(B) § 1003.3(d) and no data are reported pursuant to § 1003.4(a)(9), the property that the address of the property, a financial by reporting that the requirement is not institution would have identified in institution complies by including, as applicable if the county in which the § 1003.4(a)(9) if the transaction were not applicable, the primary address number, the property is located was not known before the partially exempt). For example, Financial predirectional, the street name, street application was denied, withdrawn, or Institution A originated a covered loan that prefixes and/or suffixes, the postdirectional, closed for incompleteness. is secured by both property A and property the secondary address identifier, and the Paragraph 4(a)(9)(ii)(C) secondary address, as applicable. For B, each of which contains a dwelling. 1. General. Census tract numbers are Financial Institution A reports the loan as example, 100 N Main ST Apt 1. ii. City name. A financial institution defined by the U.S. Census Bureau. A one entry on its loan/application register, financial institution complies with reporting the information required by complies by reporting the name of the city in which the property is located. § 1003.4(a)(9)(ii)(C) if it uses the boundaries § 1003.4(a)(9) for either property A or and codes in effect on January 1 of the iii. State name. A financial institution property B. If Financial Institution A elects calendar year covered by the loan/ complies by reporting the two letter State to report the information required by application register that it is reporting. code for the State in which the property is § 1003.4(a)(9) about property A, Financial 2. Applications—census tract not provided. located, using the U.S. Postal Service official Institution A also reports the information When reporting an application, a financial State abbreviations. required by § 1003.4(a)(5), (6), (14), (29), and institution complies with § 1003.4(a)(9)(ii)(C) iv. Zip Code. A financial institution (30) related to property A. For aspects of the by reporting that the requirement is not complies by reporting the five or nine digit entries that do not refer to the property applicable if the census tract in which the Zip Code in which the property is located. identified in § 1003.4(a)(9) (i.e., § 1003.4(a)(1) property is located was not known before the 3. Property address—not applicable. A through (4), (7), (8), (10) through (13), (15) application was denied, withdrawn, or financial institution complies with through (28), and (31) through (38)), closed for incompleteness. Financial Institution A reports the § 1003.4(a)(9)(i) by reporting that the information applicable to the covered loan or requirement is not applicable if the property Paragraph 4(a)(10)(i) application and not information that relates address of the property securing the covered 1. Applicant data—general. Refer to only to the property identified in loan is not known. For example, if the appendix B to this part for instructions on § 1003.4(a)(9). property did not have a property address at collection of an applicant’s ethnicity, race, 3. Multifamily dwellings. A single closing or if the applicant did not provide the and sex. multifamily dwelling may have more than property address of the property to the 2. Transition rule for applicant data one postal address. For example, three financial institution before the application collected prior to January 1, 2018. If a apartment buildings, each with a different was denied, withdrawn, or closed for financial institution receives an application street address, comprise a single multifamily incompleteness, the financial institution prior to January 1, 2018, but final action is dwelling that secures a covered loan. For the complies with § 1003.4(a)(9)(i) by reporting taken on or after January 1, 2018, the purposes of § 1003.4(a)(9), a financial that the requirement is not applicable. financial institution complies with

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§ 1003.4(a)(10)(i) and (b) if it collects the to-income ratio but also relies on the § 1003.4(a)(10)(iii) by reporting that the information in accordance with the applicant’s annual bonus to evaluate requirement is not applicable if the requirements in effect at the time the creditworthiness, the institution reports the application did not or would not have information was collected. For example, if a salary and the bonus to the extent relied required a credit decision that considered financial institution receives an application upon. If an institution relies on only a income under the financial institution’s on November 15, 2017, collects the portion of an applicant’s income in its policies and procedures. For example, if the applicant’s ethnicity, race, and sex in determination, it does not report that portion financial institution’s policies and accordance with the instructions in effect on of income not relied on. For example, if an procedures do not consider income for a that date, and takes final action on the institution, pursuant to lender and investor streamlined refinance program, the application on January 5, 2018, the financial guidelines, does not rely on an applicant’s institution reports that the requirement is not institution has complied with the commission income because it has been applicable, even if the institution received requirements of § 1003.4(a)(10)(i) and (b), earned for less than 12 months, the income information from the applicant. even though those instructions changed after institution does not include the applicant’s 7. Income data—non-natural person. A the information was collected but before the commission income in the income reported. financial institution reports that the date of final action. However, if, in this Likewise, if an institution relies on the requirement is not applicable when the example, the financial institution collected verified gross income of the applicant in applicant or co-applicant is not a natural the applicant’s ethnicity, race, and sex on or making the credit decision, then the person (e.g., a corporation, partnership, or after January 1, 2018, § 1003.4(a)(10)(i) and institution reports the verified gross income. trust). For example, for a transaction (b) requires the financial institution to collect Similarly, if an institution relies on the involving a trust, a financial institution the information in accordance with the income of a cosigner to evaluate reports that the requirement to report income amended instructions. creditworthiness, the institution includes the data is not applicable if the trust is the Paragraph 4(a)(10)(ii) cosigner’s income to the extent relied upon. applicant. On the other hand, if the applicant An institution, however, does not include the is a natural person, and is the beneficiary of 1. Applicant data—completion by financial income of a guarantor who is only a trust, a financial institution is required to institution. A financial institution complies secondarily liable. report the information described in with § 1003.4(a)(10)(ii) by reporting the 2. Income data—co-applicant. If two § 1003.4(a)(10)(iii). applicant’s age, as of the application date persons jointly apply for a covered loan and 8. Income data—multifamily properties. A under § 1003.4(a)(1)(ii), as the number of both list income on the application, but the financial institution complies with whole years derived from the date of birth as financial institution relies on the income of § 1003.4(a)(10)(iii) by reporting that the shown on the application form. For example, only one applicant in evaluating requirement is not applicable when the if an applicant provides a date of birth of 01/ creditworthiness, the institution reports only covered loan is secured by, or application is 15/1970 on the application form that the the income relied on. proposed to be secured by, a multifamily financial institution receives on 01/14/2015, 3. Income data—loan to employee. A dwelling. the institution reports 44 as the applicant’s financial institution complies with 9. Income data—purchased loans. A age. § 1003.4(a)(10)(iii) by reporting that the financial institution complies with 2. Applicant data—co-applicant. If there requirement is not applicable for a covered § 1003.4(a)(10)(iii) by reporting that the are no co-applicants, the financial institution loan to, or an application from, its employee requirement is not applicable when reporting reports that there is no co-applicant. If there to protect the employee’s privacy, even a purchased covered loan for which the is more than one co-applicant, the financial though the institution relied on the institution chooses not to report the income. institution reports the age only for the first employee’s income in making the credit 10. Income data—rounding. A financial co-applicant listed on the application form. decision. institution complies by reporting the dollar A co-applicant may provide an absent co- 4. Income data—assets. A financial amount of the income in thousands, rounded applicant’s age on behalf of the absent co- to the nearest thousand ($500 rounds up to applicant. institution does not include as income amounts considered in making a credit the next $1,000). For example, $35,500 is 3. Applicant data—purchased loan. A reported as 36. financial institution complies with decision based on factors that an institution § 1003.4(a)(10)(ii) by reporting that the relies on in addition to income, such as Paragraph 4(a)(11) requirement is not applicable when reporting amounts derived from underwriting 1. Type of purchaser—loan-participation a purchased loan for which the institution calculations of the potential annuitization or interests sold to more than one entity. A chooses not to report the age. depletion of an applicant’s remaining assets. financial institution that originates a covered 4. Applicant data—non-natural person. A Actual distributions from retirement loan, and then sells it to more than one financial institution complies with accounts or other assets that are relied on by entity, reports the ‘‘type of purchaser’’ based § 1003.4(a)(10)(ii) by reporting that the the financial institution as income should be on the entity purchasing the greatest interest, requirement is not applicable if the applicant reported as income. The interpretation of if any. For purposes of § 1003.4(a)(11), if a or co-applicant is not a natural person (for income in this paragraph does not affect financial institution sells some interest or example, a corporation, partnership, or trust). § 1003.4(a)(23), which requires, except for interests in a covered loan but retains a For example, for a transaction involving a purchased covered loans, the collection of majority interest in that loan, it does not trust, a financial institution reports that the the ratio of the applicant’s or borrower’s total report the sale. requirement to report the applicant’s age is monthly debt to the total monthly income 2. Type of purchaser—swapped covered not applicable if the trust is the applicant. On relied on in making the credit decision. loans. Covered loans ‘‘swapped’’ for the other hand, if the applicant is a natural 5. Income data—credit decision not made. mortgage-backed securities are to be treated person, and is the beneficiary of a trust, a Section 1003.4(a)(10)(iii) requires a financial as sales; the purchaser is the entity receiving financial institution reports the applicant’s institution to report the gross annual income the covered loans that are swapped. age. relied on in processing the application if a 3. Type of purchaser—affiliate institution. 5. Applicant data—guarantor. For credit decision was not made. For example, For purposes of complying with purposes of § 1003.4(a)(10)(ii), if a covered assume an institution received an application § 1003.4(a)(11), the term ‘‘affiliate’’ means loan or application includes a guarantor, a that included an applicant’s self-reported any company that controls, is controlled by, financial institution does not report the income, but the application was withdrawn or is under common control with, another guarantor’s age. before a credit decision that would have company, as set forth in the Bank Holding considered income was made. The financial Company Act of 1956 (12 U.S.C. 1841 et Paragraph 4(a)(10)(iii) institution reports the income information seq.). 1. Income data—income relied on. When a relied on in processing the application at the 4. Type of purchaser—private financial institution evaluates income as part time that the application was withdrawn or securitizations. A financial institution that of a credit decision, it reports the gross the file was closed for incompleteness. knows or reasonably believes that the annual income relied on in making the credit 6. Income data—credit decision not covered loan it is selling will be securitized decision. For example, if an institution relies requiring consideration of income. A by the entity purchasing the covered loan, on an applicant’s salary to compute a debt- financial institution complies with other than by one of the government-

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sponsored enterprises, reports the purchasing requirements when a covered loan is prime offer rates itself, however, is entity type as a private securitizer regardless repurchased by the originating financial responsible for correctly determining the of the type or affiliation of the purchasing institution. rates in accordance with the published entity. Knowledge or reasonable belief could, 9. Type of purchaser—quarterly recording. methodology. for example, be based on the purchase For purposes of recording the type of 3. Rate spread calculation—annual agreement or other related documents, the purchaser within 30 calendar days after the percentage rate. The requirements of financial institution’s previous transactions end of the calendar quarter pursuant to § 1003.4(a)(12)(i) refer to the covered loan’s with the purchaser, or the purchaser’s role as § 1003.4(f), a financial institution records that annual percentage rate. For closed-end a securitizer (such as an investment bank). If the requirement is not applicable if the mortgage loans, a financial institution a financial institution selling a covered loan institution originated or purchased a covered complies with § 1003.4(a)(12)(i) by relying on does not know or reasonably believe that the loan and did not sell it during the calendar the annual percentage rate for the covered purchaser will securitize the loan, and the quarter for which the institution is recording loan, as calculated and disclosed pursuant to seller knows that the purchaser frequently the data. If the financial institution sells the Regulation Z, 12 CFR 1026.18 or 1026.38. For holds or disposes of loans by means other covered loan in a subsequent quarter of the open-end lines of credit, a financial than securitization, then the financial same calendar year, the financial institution institution complies with § 1003.4(a)(12)(i) institution should report the covered loan as records the type of purchaser on its loan/ by relying on the annual percentage rate for purchased by, as appropriate, a commercial application register for the quarter in which the covered loan, as calculated and disclosed bank, savings bank, savings association, life the covered loan was sold. If a financial pursuant to Regulation Z, 12 CFR 1026.6. If insurance company, credit union, mortgage institution sells the covered loan in a multiple annual percentage rates are company, finance company, affiliate succeeding year, the financial institution calculated and disclosed pursuant to institution, or other type of purchaser. should not record the sale. Regulation Z, 12 CFR 1026.6, a financial 5. Type of purchaser—mortgage company. 10. Type of purchaser—not applicable. A institution relies on the annual percentage For purposes of complying with financial institution reports that the rate in effect at the time of account opening. § 1003.4(a)(11), a mortgage company means a requirement is not applicable for applications If an open-end line of credit has a variable- nondepository institution that purchases that were denied, withdrawn, closed for rate feature and a fixed-rate and -term covered loans and typically originates such incompleteness or approved but not accepted payment option during the draw period, a loans. A mortgage company might be an by the applicant; and for preapproval financial institution relies on the annual affiliate or a subsidiary of a bank holding requests that were denied or approved but percentage rate in effect at the time of company or thrift holding company, or it not accepted by the applicant. A financial account opening under the variable-rate might be an independent mortgage company. institution also reports that the requirement feature, which would be a discounted initial Regardless, a financial institution reports the is not applicable if the institution originated rate if one is offered under the variable-rate purchasing entity type as a mortgage or purchased a covered loan and did not sell feature. See comment 4(a)(12)–8 for guidance company, unless the mortgage company is an it during that same calendar year. regarding the annual percentage rate a affiliate of the seller institution, in which Paragraph 4(a)(12) financial institution relies on in the case of an application or preapproval request that case the seller institution should report the 1. Average prime offer rate. Average prime was approved but not accepted. loan as purchased by an affiliate institution. offer rates are annual percentage rates 4. Rate spread calculation—comparable 6. Purchases by subsidiaries. A financial derived from average interest rates and other transaction. The rate spread calculation in institution that sells a covered loan to its loan pricing terms offered to borrowers by a subsidiary that is a commercial bank, savings set of creditors for mortgage loans that have § 1003.4(a)(12)(i) is defined by reference to a bank, or savings association, should report low-risk pricing characteristics. Other loan comparable transaction, which is determined the covered loan as purchased by a pricing terms may include commonly used according to the covered loan’s amortization commercial bank, savings bank, or savings indices, margins, and initial fixed-rate type (i.e., fixed- or variable-rate) and loan association. A financial institution that sells periods for variable-rate transactions. term. For covered loans that are open-end a covered loan to its subsidiary that is a life Relevant pricing characteristics may include lines of credit, § 1003.4(a)(12)(i) requires a insurance company, should report the a consumer’s credit history and transaction financial institution to identify the most covered loan as purchased by a life insurance characteristics such as the loan-to-value ratio, closely comparable closed-end transaction. company. A financial institution that sells a owner-occupant status, and purpose of the The tables of average prime offer rates covered loan to its subsidiary that is a credit transaction. To obtain average prime offer published by the Bureau (see comment union, mortgage company, or finance rates, the Bureau uses creditor data by 4(a)(12)–2) provide additional detail about company, should report the covered loan as transaction type. how to identify the comparable transaction. purchased by a credit union, mortgage 2. Bureau tables. The Bureau publishes i. Fixed-rate transactions. For fixed-rate company, or finance company. If the tables of current and historic average prime covered loans, the term for identifying the subsidiary that purchases the covered loan is offer rates by transaction type on the FFIEC’s comparable transaction is the transaction’s not a commercial bank, savings bank, savings website (http://www.ffiec.gov/hmda) and the maturity (i.e., the period until the last association, life insurance company, credit Bureau’s website (https:// payment will be due under the closed-end union, mortgage company, or finance www.consumerfinance.gov). The Bureau mortgage loan contract or open-end line of company, the seller institution should report calculates an annual percentage rate, credit agreement). If an open-end credit plan the loan as purchased by other type of consistent with Regulation Z (see 12 CFR has a fixed rate but no definite plan length, purchaser. The financial institution should 1026.22 and 12 CFR part 1026, appendix J), a financial institution complies with report the covered loan as purchased by an for each transaction type for which pricing § 1003.4(a)(12)(i) by using a 30-year fixed-rate affiliate institution when the subsidiary is an terms are available from the creditor data loan as the most closely comparable closed- affiliate of the seller institution. described in comment 4(a)(12)–1. The Bureau end transaction. Financial institutions may 7. Type of purchaser—bank holding uses loan pricing terms available in the refer to the table on the FFIEC website company or thrift holding company. When a creditor data and other information to entitled ‘‘Average Prime Offer Rates-Fixed’’ financial institution sells a covered loan to a estimate annual percentage rates for other when identifying a comparable fixed-rate bank holding company or thrift holding types of transactions for which the creditor transaction. company (rather than to one of its data are limited or not available. The Bureau ii. Variable-rate transactions. For variable- subsidiaries), it should report the loan as publishes on the FFIEC’s website and the rate covered loans, the term for identifying purchased by other type of purchaser, unless Bureau’s website the methodology it uses to the comparable transaction is the initial, the bank holding company or thrift holding arrive at these estimates. A financial fixed-rate period (i.e., the period until the company is an affiliate of the seller institution may either use the average prime first scheduled rate adjustment). For institution, in which case the seller offer rates published by the Bureau or example, five years is the relevant term for institution should report the loan as determine average prime offer rates itself by a variable-rate transaction with a five-year, purchased by an affiliate institution. employing the methodology published on the fixed-rate introductory period that is 8. Repurchased covered loans. See FFIEC’s website and the Bureau’s website. A amortized over thirty years. Financial comment 4(a)–5 regarding reporting financial institution that determines average institutions may refer to the table on the

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FFIEC website entitled ‘‘Average Prime Offer ii. Change in loan program. If a financial that the requirement is not applicable. For Rates-Variable’’ when identifying a institution issues a rate-lock commitment partially exempt transactions under comparable variable-rate transaction. If an under one loan program, the borrower § 1003.3(d), an insured depository institution open-end line of credit has a variable rate subsequently changes to another program or insured credit union is not required to and an optional, fixed-rate feature, a financial that is subject to different pricing terms, and report the rate spread. See § 1003.3(d) and institution uses the rate table for variable-rate the financial institution changes the rate related commentary. transactions. promised to the borrower under the rate-lock 8. Application or preapproval request iii. Term not in whole years. When a commitment accordingly, the rate-set date is approved but not accepted. In the case of an covered loan’s term to maturity (or, for a the date of the program change. However, if application or preapproval request that was variable-rate transaction, the initial fixed-rate the financial institution changes the approved but not accepted, § 1003.4(a)(12) period) is not in whole years, the financial promised rate to the rate that would have requires a financial institution to report the institution uses the number of whole years been available to the borrower under the new applicable rate spread. In such cases, the closest to the actual loan term or, if the actual program on the date of the original rate-lock financial institution would provide early loan term is exactly halfway between two commitment, then that is the date the rate is disclosures under Regulation Z, 12 CFR whole years, by using the shorter loan term. set, provided the financial institution 1026.18 or 1026.37 (for closed-end mortgage For example, for a loan term of ten years and consistently follows that practice in all such loans), or 1026.40 (for open-end lines of three months, the relevant term is ten years; cases or the original rate-lock agreement so credit), but might never provide any for a loan term of ten years and nine months, provided. For example, assume that a subsequent disclosures. In such cases where the relevant term is 11 years; for a loan term borrower locks a rate of 2.5 percent on June no subsequent disclosures are provided, a of ten years and six months, the relevant term 1 for a 30-year, variable-rate loan with a five- financial institution complies with is ten years. If a loan term includes an odd year, fixed-rate introductory period. On June § 1003.4(a)(12)(i) by relying on the annual number of days, in addition to an odd 15, the borrower decides to switch to a 30- percentage rate for the application or number of months, the financial institution year, fixed-rate loan, and the rate available to preapproval request, as calculated and rounds to the nearest whole month, or the borrower for that product on June 15 is disclosed pursuant to Regulation Z, 12 CFR rounds down if the number of odd days is 4.0 percent. On June 1, the 30-year, fixed-rate 1026.18 or 1026.37 (for closed-end mortgage exactly halfway between two months. The loan would have been available to the loans), or 1026.40 (for open-end lines of financial institution rounds to one year any borrower at a rate of 3.5 percent. If the credit), as applicable. For transactions subject covered loan with a term shorter than six financial institution offers the borrower the to Regulation C for which no disclosures months, including variable-rate covered 3.5 percent rate (i.e., the rate that would have under Regulation Z are required, a financial loans with no initial, fixed-rate periods. For been available to the borrower for the fixed- institution complies with § 1003.4(a)(12)(i) example, if an open-end covered loan has a rate product on June 1, the date of the by reporting that the requirement is not rate that varies according to an index plus a original rate-lock) because the original applicable. margin, with no introductory, fixed-rate agreement so provided or because the 9. Corrected disclosures. In the case of a period, the transaction term is one year. financial institution consistently follows that covered loan or an application that was iv. Amortization period longer than loan practice for borrowers who change loan approved but not accepted, if the annual term. If the amortization period of a covered programs, then the financial institution percentage rate changes because a financial loan is longer than the term of the transaction should use June 1 as the rate-set date. In all institution provides a corrected version of the to maturity, § 1003.4(a)(12)(i) requires a other cases, the financial institution should disclosures required under Regulation Z, 12 financial institution to use the loan term to CFR 1026.19(a), pursuant to 12 CFR determine the applicable average prime offer use June 15 as the rate-set date. rate. For example, assume a financial iii. Brokered loans. When a financial 1026.19(a)(2), under 12 CFR 1026.19(f), institution originates a closed-end, fixed-rate institution has reporting responsibility for an pursuant to 12 CFR 1026.19(f)(2), or under 12 loan that has a term to maturity of five years application for a covered loan that it received CFR 1026.6(a), the financial institution and a thirty-year amortization period that from a broker, as discussed in comment 4(a)– complies with § 1003.4(a)(12)(i) by results in a balloon payment. The financial 2 (e.g., because the financial institution comparing the corrected and disclosed institution complies with § 1003.4(a)(12)(i) makes a credit decision prior to closing or annual percentage rate to the most recently by using the five-year loan term. account opening), the rate-set date is the last available average prime offer rate that was in 5. Rate-set date. The relevant date to use date the financial institution set the rate with effect for a comparable transaction as of the to determine the average prime offer rate for the broker, not the date the broker set the rate-set date, provided that the corrected a comparable transaction is the date on borrower’s rate. disclosure was provided to the borrower which the interest rate was set by the 6. Compare the annual percentage rate to prior to the end of the reporting period in financial institution for the final time before the average prime offer rate. Section which final action is taken. For purposes of final action is taken (i.e., the application was 1003.4(a)(12)(i) requires a financial § 1003.4(a)(12), the date the corrected approved but not accepted or the covered institution to compare the covered loan’s disclosure was provided to the borrower is loan was originated). annual percentage rate to the most recently the date the disclosure was mailed or i. Rate-lock agreement. If an interest rate is available average prime offer rate that was in delivered to the borrower in person; the set pursuant to a ‘‘lock-in’’ agreement effect for the comparable transaction as of the financial institution’s method of delivery between the financial institution and the rate-set date. For purposes of does not affect the date provided. For borrower, then the date on which the § 1003.4(a)(12)(i), the most recently available example, where a financial institution agreement fixes the interest rate is the date rate means the average prime offer rate set provides a corrected version of the the rate was set. Except as provided in forth in the applicable table with the most disclosures required under 12 CFR comment 4(a)(12)–5.ii, if a rate is reset after recent effective date as of the date the interest 1026.19(f), pursuant to 12 CFR 1026.19(f)(2), a lock-in agreement is executed (for example, rate was set. However, § 1003.4(a)(12)(i) does the date provided is the date disclosed because the borrower exercises a float-down not permit a financial institution to use an pursuant to Regulation Z, 12 CFR option or the agreement expires), then the average prime offer rate before its effective 1026.38(a)(3)(i). The provision of a corrected relevant date is the date the financial date. disclosure does not affect how a financial institution exercises discretion in setting the 7. Rate spread—scope of requirement. If institution determines the rate-set date. See rate for the final time before final action is the covered loan is an assumption, reverse comment 4(a)(12)–5. For example: taken. The same rule applies when a rate- mortgage, a purchased loan, or is not subject i. In the case of a financial institution’s lock agreement is extended and the rate is to Regulation Z, 12 CFR part 1026, a financial annual loan/application register submission reset at the same rate, regardless of whether institution complies with § 1003.4(a)(12) by made pursuant to § 1003.5(a)(1)(i), if the market rates have increased, decreased, or reporting that the requirement is not financial institution provides a corrected remained the same since the initial rate was applicable. If the application did not result disclosure pursuant to Regulation Z, 12 CFR set. If no lock-in agreement is executed, then in an origination for a reason other than the 1026.19(f)(2)(v), that reflects a corrected the relevant date is the date on which the application was approved but not accepted annual percentage rate, the financial institution sets the rate for the final time by the applicant, a financial institution institution reports the difference between the before final action is taken. complies with § 1003.4(a)(12) by reporting corrected annual percentage rate and the

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most recently available average prime offer institution’s own procedures. Thus, financial used. When a financial institution uses more rate that was in effect for a comparable institutions may rely on the title search they than one credit scoring model and combines transaction as of the rate-set date only if the routinely perform as part of their the scores into a composite credit score that corrected disclosure was provided to the underwriting procedures—for example, for it relies on, the financial institution reports borrower prior to the end of the calendar year home purchase loans. Regulation C does not that score and reports that more than one in which final action is taken. require financial institutions to perform title credit scoring model was used. When a ii. In the case of a financial institution’s searches solely to comply with HMDA financial institution obtains or creates two or quarterly submission made pursuant to reporting requirements. Financial institutions more credit scores for an applicant or § 1003.5(a)(1)(ii), if the financial institution may rely on other information that is readily borrower and relies on multiple scores for the provides a corrected disclosure pursuant to available to them at the time final action is applicant or borrower in making the credit Regulation Z, 12 CFR 1026.19(f)(2)(v), that taken and that they reasonably believe is decision (for example, by relying on a scoring reflects a corrected annual percentage rate, accurate, such as the applicant’s statement on grid that considers each of the scores the financial institution reports the difference the application or the applicant’s credit obtained or created for the applicant or between the corrected annual percentage rate report. For example, where the applicant borrower without combining the scores into and the most recently available average indicates on the application that there is a a composite score), § 1003.4(a)(15) requires prime offer rate that was in effect for a mortgage on the property or where the the financial institution to report one of the comparable transaction as of the rate-set date applicant’s credit report shows that the credit scores for the applicant or borrower only if the corrected disclosure was provided applicant has a mortgage—and that mortgage that was relied on in making the credit to the borrower prior to the end of the quarter will not be paid off as part of the decision. In choosing which credit score to in which final action is taken. The financial transaction—the financial institution may report in this circumstance, a financial institution does not report the difference assume that the loan it originates is secured institution need not use the same approach between the corrected annual percentage rate by a subordinate lien. If the same application for its entire HMDA submission, but it and the most recently available average did not result in an origination—for example, should be generally consistent (such as by prime offer rate that was in effect for a because the application was denied or routinely using one approach within a comparable transaction as of the rate-set date withdrawn—the financial institution would particular division of the institution or for a if the corrected disclosure was provided to report the application as an application for a category of covered loans). In instances such the borrower after the end of the quarter in subordinate-lien loan. as these, the financial institution should which final action is taken, even if the ii. Financial institutions may also consider report the name and version of the credit corrected disclosure was provided to the their established procedures when scoring model for the score reported. borrower prior to the deadline for timely determining lien status for applications that 3. Credit score—multiple applicants or submission of the financial institution’s do not result in originations. For example, borrowers. In a transaction involving two or quarterly data. However, the financial assume an applicant applies to a financial more applicants or borrowers for whom the institution reports the difference between the institution to refinance a $100,000 first financial institution obtains or creates a corrected annual percentage rate and the mortgage; the applicant also has an open-end single credit score and relies on that credit most recently available average prime offer line of credit for $20,000. If the financial score in making the credit decision for the rate that was in effect for a comparable institution’s practice in such a case is to transaction, the institution complies with transaction as of the rate-set date on its ensure that it will have first-lien position— § 1003.4(a)(15) by reporting that credit score annual loan/application register, provided through a subordination agreement with the for the applicant and reporting that the that the corrected disclosure was provided to holder of the lien securing the open-end line requirement is not applicable for the first co- the borrower prior to the end of the calendar of credit—then the financial institution applicant or, at the financial institution’s year in which final action is taken. should report the application as an discretion, by reporting that credit score for Paragraph 4(a)(13) application for a first-lien covered loan. the first co-applicant and reporting that the 2. Multiple properties. See comment requirement is not applicable for the 1. HOEPA status—not applicable. If the 4(a)(9)–2 regarding transactions involving applicant. Otherwise, a financial institution covered loan is not subject to the Home multiple properties with more than one complies with § 1003.4(a)(15) by reporting a Ownership and Equity Protection Act of property taken as security. 1994, as implemented in Regulation Z, 12 credit score for the applicant that it relied on CFR 1026.32, a financial institution complies Paragraph 4(a)(15) in making the credit decision, if any, and a with § 1003.4(a)(13) by reporting that the 1. Credit score—relied on. Except for credit score for the first co-applicant that it requirement is not applicable. If an purchased covered loans and partially relied on in making the credit decision, if application did not result in an origination, exempt transactions under § 1003.3(d), any. To illustrate, assume a transaction a financial institution complies with § 1003.4(a)(15) requires a financial institution involves one applicant and one co-applicant § 1003.4(a)(13) by reporting that the to report the credit score or scores relied on and that the financial institution obtains or requirement is not applicable. in making the credit decision and creates two credit scores for the applicant and two credit scores for the co-applicant. Paragraph 4(a)(14) information about the scoring model used to generate each score. A financial institution Assume further that the financial institution 1. Determining lien status for applications relies on a credit score in making the credit relies on a single credit score that is the and covered loans originated and purchased. decision if the credit score was a factor in the lowest, highest, most recent, or average of all i. Financial institutions are required to credit decision even if it was not a of the credit scores obtained or created to report lien status for covered loans they dispositive factor. For example, if a credit make the credit decision for the transaction. originate and purchase and applications that score is one of multiple factors in a financial The financial institution complies with do not result in originations (preapproval institution’s credit decision, the financial § 1003.4(a)(15) by reporting that credit score requests that are approved but not accepted, institution has relied on the credit score even and information about the scoring model preapproval requests that are denied, if the financial institution denies the used for the applicant and reporting that the applications that are approved but not application because one or more requirement is not applicable for the first co- accepted, denied, withdrawn, or closed for underwriting requirements other than the applicant or, at the financial institution’s incompleteness). For covered loans credit score are not satisfied. discretion, by reporting the data for the first purchased by a financial institution, lien 2. Credit score—multiple credit scores. co-applicant and reporting that the status is determined by reference to the best When a financial institution obtains or requirement is not applicable for the information readily available to the financial creates two or more credit scores for a single applicant. Alternatively, assume a institution at the time of purchase. For applicant or borrower but relies on only one transaction involves one applicant and one covered loans that a financial institution score in making the credit decision (for co-applicant and that the financial institution originates and applications that do not result example, by relying on the lowest, highest, obtains or creates three credit scores for the in originations, lien status is determined by most recent, or average of all of the scores), applicant and three credit scores for the co- reference to the best information readily the financial institution complies with applicant. Assume further that the financial available to the financial institution at the § 1003.4(a)(15) by reporting that credit score institution relies on the middle credit score time final action is taken and to the financial and information about the scoring model for the applicant and the middle credit score

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for the co-applicant to make the credit § 1003.4(a)(16) by reporting the reason or that the requirement is not applicable to the decision for the transaction. The financial reasons it denied the preapproval request. transaction. institution complies with § 1003.4(a)(15) by 3. Reason for denial—adverse action model 3. Corrected disclosures. If the amount of reporting both the middle score for the form or similar form. If a financial institution total loan costs changes because a financial applicant and the middle score for the co- chooses to provide the applicant the reason institution provides a corrected version of the applicant. or reasons it denied the application using the disclosures required under Regulation Z, 12 4. Transactions for which no credit model form contained in appendix C to CFR 1026.19(f), pursuant to 12 CFR decision was made. If a file was closed for Regulation B (Form C–1, Sample Notice of 1026.19(f)(2), the financial institution incompleteness or the application was Action Taken and Statement of Reasons) or complies with § 1003.4(a)(17)(i) by reporting withdrawn before a credit decision was a similar form, § 1003.4(a)(16) requires the the corrected amount, provided that the made, the financial institution complies with financial institution to report the reason or corrected disclosure was provided to the § 1003.4(a)(15) by reporting that the reasons that were specified on the form by borrower prior to the end of the reporting requirement is not applicable, even if the the financial institution, which includes period in which closing occurs. For purposes financial institution had obtained or created reporting the ‘‘Other’’ reason or reasons that of § 1003.4(a)(17)(i), the date the corrected a credit score for the applicant or co- were specified on the form by the financial disclosure was provided to the borrower is applicant. For example, if a file is closed for institution, if applicable. If a financial the date disclosed pursuant to Regulation Z, incompleteness and is so reported in institution chooses to provide a disclosure of 12 CFR 1026.38(a)(3)(i). For example: accordance with § 1003.4(a)(8), the financial the applicant’s right to a statement of specific i. In the case of a financial institution’s institution complies with § 1003.4(a)(15) by reasons using the model form contained in annual loan/application register submission reporting that the requirement is not appendix C to Regulation B (Form C–5, made pursuant to § 1003.5(a)(1)(i), if the applicable, even if the financial institution Sample Disclosure of Right to Request financial institution provides a corrected had obtained or created a credit score for the Specific Reasons for Credit Denial) or a disclosure to the borrower to reflect a refund applicant or co-applicant. Similarly, if an similar form, or chooses to provide the denial made pursuant to Regulation Z, 12 CFR application was withdrawn by the applicant reason or reasons orally under Regulation B, 1026.19(f)(2)(v), the financial institution reports the corrected amount of total loan before a credit decision was made and is so 12 CFR 1002.9(a)(2)(ii), the financial costs only if the corrected disclosure was reported in accordance with § 1003.4(a)(8), institution complies with § 1003.4(a)(16) by provided to the borrower prior to the end of the financial institution complies with entering the principal reason or reasons it the calendar year in which closing occurs. § 1003.4(a)(15) by reporting that the denied the application. ii. In the case of a financial institution’s requirement is not applicable, even if the 4. Reason for denial—scope of quarterly submission made pursuant to financial institution had obtained or created requirement. A financial institution complies § 1003.5(a)(1)(ii), if the financial institution a credit score for the applicant or co- with § 1003.4(a)(16) by reporting that the provides a corrected disclosure to the applicant. requirement is not applicable if the action borrower to reflect a refund made pursuant 5. Transactions for which no credit score taken on the application, pursuant to to Regulation Z, 12 CFR 1026.19(f)(2)(v), the was relied on. If a financial institution makes § 1003.4(a)(8), is not a denial. For example, financial institution reports the corrected a credit decision without relying on a credit a financial institution complies with amount of total loan costs only if the score for the applicant or borrower, the § 1003.4(a)(16) by reporting that the corrected disclosure was provided to the financial institution complies with requirement is not applicable if the loan is borrower prior to the end of the quarter in § 1003.4(a)(15) by reporting that the originated or purchased by the financial which closing occurs. The financial requirement is not applicable. institution, or the application or preapproval institution does not report the corrected 6. Purchased covered loan. A financial request was approved but not accepted, or amount of total loan costs in its quarterly institution complies with § 1003.4(a)(15) by the application was withdrawn before a submission if the corrected disclosure was reporting that the requirement is not credit decision was made, or the file was provided to the borrower after the end of the applicable when the covered loan is a closed for incompleteness. For partially quarter in which closing occurs, even if the purchased covered loan. exempt transactions under § 1003.3(d), an corrected disclosure was provided to the 7. Non-natural person. When the applicant insured depository institution or insured borrower prior to the deadline for timely and co-applicant, if applicable, are not credit union is not required to report the submission of the financial institution’s natural persons, a financial institution principal reason or reasons it denied an quarterly data. However, the financial complies with § 1003.4(a)(15) by reporting application. See § 1003.3(d) and related institution reports the corrected amount of that the requirement is not applicable. commentary. total loan costs on its annual loan/ Paragraph 4(a)(16) Paragraph 4(a)(17)(i) application register, provided that the 1. Reason for denial—general. A financial 1. Total loan costs—scope of requirement. corrected disclosure was provided to the institution complies with § 1003.4(a)(16) by Section 1003.4(a)(17)(i) does not require borrower prior to the end of the calendar year in which closing occurs. reporting the principal reason or reasons it financial institutions to report the total loan denied the application, indicating up to four costs for applications, or for transactions not Paragraph 4(a)(17)(ii) reasons. The financial institution should subject to Regulation Z, 12 CFR 1026.43(c), 1. Total points and fees—scope of report only the principal reason or reasons it and 12 CFR 1026.19(f), such as open-end requirement. Section 1003.4(a)(17)(ii) does denied the application, even if there are lines of credit, reverse mortgages, or loans or not require financial institutions to report the fewer than four reasons. For example, if a lines of credit made primarily for business or total points and fees for transactions not financial institution denies the application commercial purposes. In these cases, a subject to Regulation Z, 12 CFR 1026.43(c), because of the applicant’s credit history and financial institution complies with such as open-end lines of credit, reverse debt-to-income ratio, the financial institution § 1003.4(a)(17)(i) by reporting that the mortgages, or loans or lines of credit made need only report these two principal reasons. requirement is not applicable to the primarily for business or commercial The reasons reported must be specific and transaction. For partially exempt transactions purposes, or for applications or purchased accurately describe the principal reason or under § 1003.3(d), an insured depository covered loans. In these cases, a financial reasons the financial institution denied the institution or insured credit union is not institution complies with § 1003.4(a)(17)(ii) application. required to report the total loan costs. See by reporting that the requirement is not 2. Reason for denial—preapproval request § 1003.3(d) and related commentary. applicable to the transaction. For partially denied. Section 1003.4(a)(16) requires a 2. Purchased loans—applications received exempt transactions under § 1003.3(d), an financial institution to report the principal prior to the integrated disclosure effective insured depository institution or insured reason or reasons it denied the application. date. For purchased covered loans subject to credit union is not required to report the total A request for a preapproval under a this reporting requirement for which points and fees. See § 1003.3(d) and related preapproval program as defined by applications were received by the selling commentary. § 1003.2(b)(2) is an application. If a financial entity prior to the effective date of Regulation 2. Total points and fees cure mechanism. institution denies a preapproval request, the Z, 12 CFR 1026.19(f), a financial institution For covered loans subject to this reporting financial institution complies with complies with § 1003.4(a)(17)(i) by reporting requirement, if a financial institution

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determines that the transaction’s total points reports the corrected amount of borrower- i. In the case of a financial institution’s and fees exceeded the applicable limit and paid origination charges only if the corrected annual loan/application register submission cures the overage pursuant to Regulation Z, disclosure was provided to the borrower made pursuant to § 1003.5(a)(1)(i), if the 12 CFR 1026.43(e)(3)(iii) and (iv), a financial prior to the end of the calendar year in which financial institution provides a corrected institution complies with § 1003.4(a)(17)(ii) closing occurs. disclosure to the borrower to reflect a refund by reporting the correct amount of total ii. In the case of a financial institution’s made pursuant to Regulation Z, 12 CFR points and fees, provided that the cure was quarterly submission made pursuant to 1026.19(f)(2)(v), the financial institution effected during the same reporting period in § 1003.5(a)(1)(ii), if the financial institution reports the corrected amount of discount which closing occurred. For example, in the provides a corrected disclosure to the points only if the corrected disclosure was case of a financial institution’s quarterly borrower to reflect a refund made pursuant provided to the borrower prior to the end of submission, the financial institution reports to Regulation Z, 12 CFR 1026.19(f)(2)(v), the the calendar year in which closing occurred. the revised amount of total points and fees financial institution reports the corrected ii. In the case of a financial institution’s only if it cured the overage prior to the end amount of borrower-paid origination charges quarterly submission made pursuant to of the quarter in which closing occurred. The only if the corrected disclosure was provided § 1003.5(a)(1)(ii), if the financial institution financial institution does not report the to the borrower prior to the end of the quarter provides a corrected disclosure to the revised amount of total points and fees in its in which closing occurs. The financial borrower to reflect a refund made pursuant quarterly submission if it cured the overage institution does not report the corrected to Regulation Z, 12 CFR 1026.19(f)(2)(v), the after the end of the quarter, even if the cure amount of borrower-paid origination charges financial institution reports the corrected was effected prior to the deadline for timely in its quarterly submission if the corrected amount of discount points only if the submission of the financial institution’s disclosure was provided to the borrower after corrected disclosure was provided to the quarterly data. However, the financial the end of the quarter in which closing borrower prior to the end of the quarter in institution reports the revised amount of total occurs, even if the corrected disclosure was which closing occurred. The financial points and fees on its annual loan/ provided to the borrower prior to the institution does not report the corrected application register. deadline for timely submission of the amount of discount points in its quarterly Paragraph 4(a)(18) financial institution’s quarterly data. submission if the corrected disclosure was provided to the borrower after the end of the However, the financial institution reports the 1. Origination charges—scope of quarter in which closing occurred, even if the corrected amount of borrower-paid requirement. Section 1003.4(a)(18) does not corrected disclosure was provided to the origination charges on its annual loan/ require financial institutions to report the borrower prior to the deadline for timely application register, provided that the total borrower-paid origination charges for submission of the financial institution’s corrected disclosure was provided to the applications, or for transactions not subject to quarterly data. However, the financial borrower prior to the end of the calendar year Regulation Z, 12 CFR 1026.19(f), such as institution reports the corrected amount of in which closing occurs. open-end lines of credit, reverse mortgages, discount points on its annual loan/ or loans or lines of credit made primarily for Paragraph 4(a)(19) application register, provided that the business or commercial purposes. In these 1. Discount points—scope of requirement. corrected disclosure was provided to the cases, a financial institution complies with Section 1003.4(a)(19) does not require borrower prior to the end of the calendar year § 1003.4(a)(18) by reporting that the financial institutions to report the discount in which closing occurred. requirement is not applicable to the transaction. For partially exempt transactions points for applications, or for transactions Paragraph 4(a)(20) under § 1003.3(d), an insured depository not subject to Regulation Z, 12 CFR 1. Lender credits—scope of requirement. institution or insured credit union is not 1026.19(f), such as open-end lines of credit, Section 1003.4(a)(20) does not require required to report the total borrower-paid reverse mortgages, or loans or lines of credit financial institutions to report lender credits origination charges. See § 1003.3(d) and made primarily for business or commercial for applications, or for transactions not related commentary. purposes. In these cases, a financial subject to Regulation Z, 12 CFR 1026.19(f), 2. Purchased loans—applications received institution complies with § 1003.4(a)(19) by such as open-end lines of credit, reverse prior to the integrated disclosure effective reporting that the requirement is not mortgages, or loans or lines of credit made date. For purchased covered loans subject to applicable to the transaction. For partially primarily for business or commercial this reporting requirement for which exempt transactions under § 1003.3(d), an purposes. In these cases, a financial applications were received by the selling insured depository institution or insured institution complies with § 1003.4(a)(20) by entity prior to the effective date of Regulation credit union is not required to report the reporting that the requirement is not Z, 12 CFR 1026.19(f), a financial institution discount points. See § 1003.3(d) and related applicable to the transaction. For partially complies with § 1003.4(a)(18) by reporting commentary. exempt transactions under § 1003.3(d), an that the requirement is not applicable to the 2. Purchased loans—applications received insured depository institution or insured transaction. prior to the integrated disclosure effective credit union is not required to report lender 3. Corrected disclosures. If the total amount date. For purchased covered loans subject to credits. See § 1003.3(d) and related of borrower-paid origination charges changes this reporting requirement for which commentary. because a financial institution provides a applications were received by the selling 2. Purchased loans—applications received corrected version of the disclosures required entity prior to the effective date of Regulation prior to the integrated disclosure effective under Regulation Z, 12 CFR 1026.19(f), Z, 12 CFR 1026.19(f), a financial institution date. For purchased covered loans subject to pursuant to 12 CFR 1026.19(f)(2), the complies with § 1003.4(a)(19) by reporting this reporting requirement for which financial institution complies with that the requirement is not applicable to the applications were received by the selling § 1003.4(a)(18) by reporting the corrected transaction. entity prior to the effective date of Regulation amount, provided that the corrected 3. Corrected disclosures. If the amount of Z, 12 CFR 1026.19(f), a financial institution disclosure was provided to the borrower discount points changes because a financial complies with § 1003.4(a)(20) by reporting prior to the end of the reporting period in institution provides a corrected version of the that the requirement is not applicable to the which closing occurs. For purposes of disclosures required under Regulation Z, 12 transaction. § 1003.4(a)(18), the date the corrected CFR 1026.19(f), pursuant to 12 CFR 3. Corrected disclosures. If the amount of disclosure was provided to the borrower is 1026.19(f)(2), the financial institution lender credits changes because a financial the date disclosed pursuant to Regulation Z, complies with § 1003.4(a)(19) by reporting institution provides a corrected version of the 12 CFR 1026.38(a)(3)(i). For example: the corrected amount, provided that the disclosures required under Regulation Z, 12 i. In the case of a financial institution’s corrected disclosure was provided to the CFR 1026.19(f), pursuant to 12 CFR annual loan/application register submission borrower prior to the end of the reporting 1026.19(f)(2), the financial institution made pursuant to § 1003.5(a)(1)(i), if the period in which closing occurs. For purposes complies with § 1003.4(a)(20) by reporting financial institution provides a corrected of § 1003.4(a)(19), the date the corrected the corrected amount, provided that the disclosure to the borrower to reflect a refund disclosure was provided to the borrower is corrected disclosure was provided to the made pursuant to Regulation Z, 12 CFR the date disclosed pursuant to Regulation Z, borrower prior to the end of the reporting 1026.19(f)(2)(v), the financial institution 12 CFR 1026.38(a)(3)(i). For example: period in which closing occurred. For

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purposes of § 1003.4(a)(20), the date the purposes of § 1003.4(a)(21), the date the monthly income (debt-to-income ratio) relied corrected disclosure was provided to the revised or corrected disclosure was provided on in making the credit decision. For borrower is the date disclosed pursuant to to the borrower is the date disclosed example, if a financial institution calculated Regulation Z, 12 CFR 1026.38(a)(3)(i). For pursuant to Regulation Z, 12 CFR the applicant’s or borrower’s debt-to-income example: 1026.37(a)(4) or 1026.38(a)(3)(i), as ratio twice—once according to the financial i. In the case of a financial institution’s applicable. institution’s own requirements and once annual loan/application register submission 2. Applications. In the case of an according to the requirements of a secondary made pursuant to § 1003.5(a)(1)(i), if the application, § 1003.4(a)(21) requires a market investor—and the financial financial institution provides a corrected financial institution to report the applicable institution relied on the debt-to-income ratio disclosure to the borrower to reflect a refund interest rate only if the application has been calculated according to the secondary market made pursuant to Regulation Z, 12 CFR approved by the financial institution but not investor’s requirements in making the credit 1026.19(f)(2)(v), the financial institution accepted by the borrower. In such cases, a decision, § 1003.4(a)(23) requires the reports the corrected amount of lender financial institution reports the interest rate financial institution to report the debt-to- credits only if the corrected disclosure was applicable at the time that the application income ratio calculated according to the provided to the borrower prior to the end of was approved by the financial institution. A requirements of the secondary market the calendar year in which closing occurred. financial institution may report the interest investor. ii. In the case of a financial institution’s rate appearing on the disclosure provided 2. Transactions for which a debt-to-income quarterly submission made pursuant to pursuant to 12 CFR 1026.19(e) or (f) if such ratio was one of multiple factors. A financial § 1003.5(a)(1)(ii), if the financial institution disclosure accurately reflects the interest rate institution relies on the ratio of the provides a corrected disclosure to the at the time the application was approved. For applicant’s or borrower’s total monthly debt borrower to reflect a refund made pursuant applications that have been denied or to total monthly income (debt-to-income to Regulation Z, 12 CFR 1026.19(f)(2)(v), the withdrawn, or files closed for ratio) in making the credit decision if the financial institution reports the corrected incompleteness, a financial institution debt-to-income ratio was a factor in the credit amount of lender credits only if the corrected reports that no interest rate was applicable to decision even if it was not a dispositive disclosure was provided to the borrower the application. factor. For example, if the debt-to-income prior to the end of the quarter in which 3. Adjustable rate—interest rate unknown. ratio was one of multiple factors in a closing occurred. The financial institution Except as provided in comment 4(a)(21)–1, financial institution’s credit decision, the does not report the corrected amount of for adjustable-rate covered loans or financial institution has relied on the debt- lender credits in its quarterly submission if applications, if the interest rate is unknown to-income ratio and complies with the corrected disclosure was provided to the at the time that the application was § 1003.4(a)(23) by reporting the debt-to- borrower after the end of the quarter in approved, or at closing or account opening, income ratio, even if the financial institution which closing occurred, even if the corrected a financial institution reports the fully- denied the application because one or more disclosure was provided to the borrower indexed rate based on the index applicable underwriting requirements other than the prior to the deadline for timely submission to the covered loan or application. For debt-to-income ratio were not satisfied. of the financial institution’s quarterly data. purposes of § 1003.4(a)(21), the fully-indexed 3. Transactions for which no credit However, the financial institution reports the rate is the index value and margin at the time decision was made. If a file was closed for corrected amount of lender credits on its that the application was approved, or, for incompleteness, or if an application was annual loan/application register, provided covered loans, at closing or account opening. withdrawn before a credit decision was made, a financial institution complies with that the corrected disclosure was provided to Paragraph 4(a)(22) the borrower prior to the end of the calendar § 1003.4(a)(23) by reporting that the year in which closing occurred. 1. Prepayment penalty term—scope of requirement is not applicable, even if the requirement. Section 1003.4(a)(22) does not financial institution had calculated the ratio Paragraph 4(a)(21) require financial institutions to report the of the applicant’s total monthly debt to total 1. Interest rate—disclosures. Except for term of any prepayment penalty for monthly income (debt-to-income ratio). For partially exempt transactions under transactions not subject to Regulation Z, 12 example, if a file was closed for § 1003.3(d), § 1003.4(a)(21) requires a CFR part 1026, such as loans or lines of incompleteness and was so reported in financial institution to identify the interest credit made primarily for business or accordance with § 1003.4(a)(8), the financial rate applicable to the approved application, commercial purposes, or for reverse institution complies with § 1003.4(a)(23) by or to the covered loan at closing or account mortgages or purchased covered loans. In reporting that the requirement is not opening. For covered loans or applications these cases, a financial institution complies applicable, even if the financial institution subject to the integrated mortgage disclosure with § 1003.4(a)(22) by reporting that the had calculated the applicant’s debt-to-income requirements of Regulation Z, 12 CFR requirement is not applicable to the ratio. Similarly, if an application was 1026.19(e) and (f), a financial institution transaction. For partially exempt transactions withdrawn by the applicant before a credit complies with § 1003.4(a)(21) by reporting under § 1003.3(d), an insured depository decision was made, the financial institution the interest rate disclosed on the applicable institution or insured credit union is not complies with § 1003.4(a)(23) by reporting disclosure. For covered loans or approved required to report the term of any that the requirement is not applicable, even applications for which disclosures were prepayment penalty. See § 1003.3(d) and if the financial institution had calculated the provided pursuant to both the early and the related commentary. applicant’s debt-to-income ratio. final disclosure requirements in Regulation 2. Transactions for which no prepayment 4. Transactions for which no debt-to- Z, 12 CFR 1026.19(e) and (f), a financial penalty exists. For covered loans or income ratio was relied on. Section institution reports the interest rate disclosed applications that have no prepayment 1003.4(a)(23) does not require a financial pursuant to 12 CFR 1026.19(f). A financial penalty, a financial institution complies with institution to calculate the ratio of an institution may rely on the definitions and § 1003.4(a)(22) by reporting that the applicant’s or borrower’s total monthly debt commentary to the sections of Regulation Z requirement is not applicable to the to total monthly income (debt-to-income relevant to the disclosure of the interest rate transaction. A financial institution may rely ratio), nor does it require a financial pursuant to 12 CFR 1026.19(e) or (f). If a on the definitions and commentary to institution to rely on an applicant’s or financial institution provides a revised or Regulation Z, 12 CFR 1026.32(b)(6)(i) or (ii) borrower’s debt-to-income ratio in making a corrected version of the disclosures required in determining whether the terms of a credit decision. If a financial institution under Regulation Z, 12 CFR 1026.19(e) or (f), transaction contain a prepayment penalty. made a credit decision without relying on the pursuant to 12 CFR 1026.19(e)(3)(iv) or (f)(2), applicant’s or borrower’s debt-to-income as applicable, the financial institution Paragraph 4(a)(23) ratio, the financial institution complies with complies with § 1003.4(a)(21) by reporting 1. General. For covered loans that are not § 1003.4(a)(23) by reporting that the the interest rate on the revised or corrected purchased covered loans and that are not requirement is not applicable since no debt- disclosure, provided that the revised or partially exempt under § 1003.3(d), to-income ratio was relied on in connection corrected disclosure was provided to the § 1003.4(a)(23) requires a financial institution with the credit decision. borrower prior to the end of the reporting to report the ratio of the applicant’s or 5. Non-natural person. A financial period in which final action is taken. For borrower’s total monthly debt to total institution complies with § 1003.4(a)(23) by

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reporting that the requirement is not before a credit decision was made and is so in a unit of time other than months, the applicable when the applicant and co- reported in accordance with § 1003.4(a)(8), financial institution should report the applicant, if applicable, are not natural the financial institution complies with covered loan or application term using an persons. § 1003.4(a)(24) by reporting that the equivalent number of whole months without 6. Multifamily dwellings. A financial requirement is not applicable, even if the regard for any remainder. institution complies with § 1003.4(a)(23) by financial institution had calculated a 3. Purchased loans. For a covered loan that reporting that the requirement is not combined loan-to-value ratio. was purchased, a financial institution reports applicable for a covered loan secured by, or 4. Transactions for which no combined the number of months after which the legal an application proposed to be secured by, a loan-to-value ratio was relied on. Section obligation matures as measured from the multifamily dwelling. 1003.4(a)(24) does not require a financial covered loan’s origination. 7. Purchased covered loans. A financial institution to calculate the ratio of the total 4. Open-end line of credit. For an open-end institution complies with § 1003.4(a)(23) by amount of debt secured by the property to the line of credit with a definite term, a financial reporting that the requirement is not value of the property (combined loan-to- institution reports the number of months applicable when reporting a purchased value ratio), nor does it require a financial from origination until the account covered loan. institution to rely on a combined loan-to- termination date, including both the draw Paragraph 4(a)(24) value ratio in making a credit decision. If a and repayment period. financial institution makes a credit decision 5. Loan term—scope of requirement. For a 1. General. Except for purchased covered without relying on a combined loan-to-value covered loan or application without a loans and partially exempt transactions ratio, the financial institution complies with definite term, such as a reverse mortgage, a under § 1003.3(d), § 1003.4(a)(24) requires a § 1003.4(a)(24) by reporting that the financial institution complies with financial institution to report the ratio of the requirement is not applicable since no § 1003.4(a)(25) by reporting that the total amount of debt secured by the property combined loan-to-value ratio was relied on in requirement is not applicable. For partially to the value of the property (combined loan- making the credit decision. exempt transactions under § 1003.3(d), an to-value ratio) relied on in making the credit 5. Purchased covered loan. A financial insured depository institution or insured decision. For example, if a financial institution complies with § 1003.4(a)(24) by credit union is not required to report the loan institution calculated a combined loan-to- reporting that the requirement is not term. See § 1003.3(d) and related value ratio twice—once according to the applicable when the covered loan is a commentary. financial institution’s own requirements and purchased covered loan. Paragraph 4(a)(26) once according to the requirements of a 6. Property. A financial institution reports secondary market investor—and the financial the combined loan-to-value ratio relied on in 1. Types of introductory rates. Except for institution relied on the combined loan-to- making the credit decision, regardless of partially exempt transactions under value ratio calculated according to the which property or properties it used in the § 1003.3(d), § 1003.4(a)(26) requires a secondary market investor’s requirements in combined loan-to-value ratio calculation. The financial institution to report the number of making the credit decision, § 1003.4(a)(24) property used in the combined loan-to-value months, or proposed number of months in requires the financial institution to report the ratio calculation does not need to be the the case of an application, from closing or combined loan-to-value ratio calculated property identified in § 1003.4(a)(9) and may account opening until the first date the according to the requirements of the include more than one property and non-real interest rate may change. For example, secondary market investor. property. For example, if a financial assume an open-end line of credit contains 2. Transactions for which a combined loan- institution originated a covered loan for the an introductory or ‘‘teaser’’ interest rate for to-value ratio was one of multiple factors. A purchase of a multifamily dwelling, the loan two months after the date of account financial institution relies on the ratio of the was secured by the multifamily dwelling and opening, after which the interest rate may total amount of debt secured by the property by non-real property, such as securities, and adjust. In this example, the financial to the value of the property (combined loan- the financial institution used the multifamily institution complies with § 1003.4(a)(26) by to-value ratio) in making the credit decision dwelling and the non-real property to reporting the number of months as ‘‘2.’’ if the combined loan-to-value ratio was a calculate the combined loan-to-value ratio Section 1003.4(a)(26) requires a financial factor in the credit decision, even if it was that it relied on in making the credit institution to report the number of months not a dispositive factor. For example, if the decision, § 1003.4(a)(24) requires the based on when the first interest rate combined loan-to-value ratio is one of financial institution to report the relied upon adjustment may occur, even if an interest rate multiple factors in a financial institution’s ratio. Section 1003.4(a)(24) does not require adjustment is not required to occur at that credit decision, the financial institution has a financial institution to use a particular time and even if the rates that will apply, or relied on the combined loan-to-value ratio combined loan-to-value ratio calculation the periods for which they will apply, are not and complies with § 1003.4(a)(24) by method but instead requires financial known at closing or account opening. For reporting the combined loan-to-value ratio, institutions to report the combined loan-to- example, if a closed-end mortgage loan with even if the financial institution denies the value ratio relied on in making the credit a 30-year term has an adjustable-rate product application because one or more decision. with an introductory interest rate for the first underwriting requirements other than the 60 months, after which the interest rate is combined loan-to-value ratio are not Paragraph 4(a)(25) permitted, but not required to vary, according satisfied. 1. Amortization and maturity. For a fully to the terms of an index rate, the financial 3. Transactions for which no credit amortizing covered loan, the number of institution complies with § 1003.4(a)(26) by decision was made. If a file was closed for months after which the legal obligation reporting the number of months as ‘‘60.’’ incompleteness, or if an application was matures is the number of months in the Similarly, if a closed-end mortgage loan with withdrawn before a credit decision was amortization schedule, ending with the final a 30-year term is a step-rate product with an made, a financial institution complies with payment. Some covered loans do not fully introductory interest rate for the first 24 § 1003.4(a)(24) by reporting that the amortize during the maturity term, such as months, after which the interest rate will requirement is not applicable, even if the covered loans with a balloon payment; such increase to a different known interest rate for financial institution had calculated the ratio loans should still be reported using the the next 36 months, the financial institution of the total amount of debt secured by the maturity term rather than the amortization complies with § 1003.4(a)(26) by reporting property to the value of the property term, even in the case of covered loans that the number of months as ‘‘24.’’ (combined loan-to-value ratio). For example, mature before fully amortizing but have reset 2. Preferred rates. Section 1003.4(a)(26) if a file is closed for incompleteness and is options. For example, a 30-year fully does not require reporting of introductory so reported in accordance with § 1003.4(a)(8), amortizing covered loan would be reported interest rate periods based on preferred rates the financial institution complies with with a term of ‘‘360,’’ while a five year unless the terms of the legal obligation § 1003.4(a)(24) by reporting that the balloon covered loan would be reported with provide that the preferred rate will expire at requirement is not applicable, even if the a loan term of ‘‘60.’’ a certain defined date. Preferred rates include financial institution had calculated a 2. Non-monthly repayment periods. If a terms of the legal obligation that provide that combined loan-to-value ratio. Similarly, if an covered loan or application includes a the initial underlying rate is fixed but that it application was withdrawn by the applicant schedule with repayment periods measured may increase or decrease upon the

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occurrence of some future event, such as an appropriate sections of Regulation Z which it is sited as secured by a employee leaving the employ of the financial referenced in § 1003.4(a)(27) of this part in manufactured home and not land, even if the institution, the borrower closing an existing determining whether the contractual feature manufactured home is considered real deposit account with the financial should be reported. property under applicable State law. institution, or the borrower revoking an Paragraph 4(a)(28) 2. Manufactured home community. A election to make automated payments. In manufactured home community that is a these cases, because it is not known at the 1. General. Except for partially exempt multifamily dwelling is not considered a time of closing or account opening whether transactions under § 1003.3(d), manufactured home for purposes of the future event will occur, and if so, when § 1003.4(a)(28) requires a financial institution § 1003.4(a)(29). it will occur, § 1003.4(a)(26) does not require to report the property value relied on in 3. Multiple properties. See comment reporting of an introductory interest rate making the credit decision. For example, if 4(a)(9)–2 regarding transactions involving period. the institution relies on an appraisal or other multiple properties with more than one 3. Loan or application with a fixed rate. A valuation for the property in calculating the property taken as security. financial institution complies with loan-to-value ratio, it reports that value; if the 4. Scope of requirement. A financial § 1003.4(a)(26) by reporting that the institution relies on the purchase price of the institution reports that the requirement is not requirement is not applicable for a covered property in calculating the loan-to-value applicable for a covered loan where the loan with a fixed rate or an application for ratio, it reports that value. dwelling related to the property identified in a covered loan with a fixed rate. 2. Multiple property values. When a § 1003.4(a)(9) is not a manufactured home. 4. Purchased loan. A financial institution financial institution obtains two or more For partially exempt transactions under complies with § 1003.4(a)(26) by reporting valuations of the property securing or § 1003.3(d), an insured depository institution that requirement is not applicable when the proposed to secure the covered loan, the or insured credit union is not required to covered loan is a purchased covered loan financial institution complies with report the information specified in with a fixed rate. § 1003.4(a)(28) by reporting the value relied § 1003.4(a)(29). See § 1003.3(d) and related 5. Non-monthly introductory periods. If a on in making the credit decision. For commentary. example, when a financial institution obtains covered loan or application includes an Paragraph 4(a)(30) introductory interest rate period measured in an appraisal, an automated valuation model a unit of time other than months, the report, and a broker price opinion with 1. Indirect land ownership. Indirect land financial institution complies with different values for the property, it reports ownership can occur when the applicant or § 1003.4(a)(26) by reporting the introductory the value relied on in making the credit borrower is or will be a member of a resident- interest rate period for the covered loan or decision. Section § 1003.4(a)(28) does not owned community structured as a housing application using an equivalent number of require a financial institution to use a cooperative in which the occupants own an whole months without regard for any particular property valuation method, but entity that holds the underlying land of the remainder. For example, assume an open-end instead requires a financial institution to manufactured home community. In such line of credit contains an introductory report the valuation relied on in making the communities, the applicant or borrower may interest rate for 50 days after the date of credit decision. still have a lease and pay rent for the lot on account opening, after which the interest rate 3. Transactions for which no credit which his or her manufactured home is or may adjust. In this example, the financial decision was made. If a file was closed for will be located, but the property interest type institution complies with § 1003.4(a)(26) by incompleteness or the application was for such an arrangement should be reported reporting the number of months as ‘‘1.’’ The withdrawn before a credit decision was as indirect ownership if the applicant is or financial institution must report one month made, the financial institution complies with will be a member of the cooperative that for any introductory interest rate period that § 1003.4(a)(28) by reporting that the owns the underlying land of the totals less than one whole month. requirement is not applicable, even if the manufactured home community. If an financial institution had obtained a property applicant resides or will reside in such a Paragraph 4(a)(27) value. For example, if a file is closed for community but is not a member, the property 1. General. Except for partially exempt incompleteness and is so reported in interest type should be reported as a paid transactions under § 1003.3(d), accordance with § 1003.4(a)(8), the financial leasehold. § 1003.4(a)(27) requires reporting of institution complies with § 1003.4(a)(28) by 2. Leasehold interest. A leasehold interest contractual features that would allow reporting that the requirement is not could be formalized in a lease with a defined payments other than fully amortizing applicable, even if the financial institution term and specified rent payments, or could payments. Section 1003.4(a)(27) defines the had obtained a property value. Similarly, if arise as a tenancy at will through permission contractual features by reference to an application was withdrawn by the of a land owner without any written, formal Regulation Z, 12 CFR part 1026, but without applicant before a credit decision was made arrangement. For example, assume a regard to whether the covered loan is and is so reported in accordance with borrower will locate the manufactured home consumer credit, as defined in § 1003.4(a)(8), the financial institution in a manufactured home community, has a § 1026.2(a)(12), is extended by a creditor, as complies with § 1003.4(a)(28) by reporting written lease for a lot in that park, and the defined in § 1026.2(a)(17), or is extended to that the requirement is not applicable, even lease specifies rent payments. In this a consumer, as defined in § 1026.2(a)(11), if the financial institution had obtained a example, a financial institution complies and without regard to whether the property property value. with § 1003.4(a)(30) by reporting a paid is a dwelling as defined in § 1026.2(a)(19). 4. Transactions for which no property leasehold. However, if instead the borrower For example, assume that a financial value was relied on. Section 1003.4(a)(28) will locate the manufactured home on land institution originates a business-purpose does not require a financial institution to owned by a family member without a written transaction that is exempt from Regulation Z obtain a property valuation, nor does it lease and with no agreement as to rent pursuant to 12 CFR 1026.3(a)(1), to finance require a financial institution to rely on a payments, a financial institution complies the purchase of a multifamily dwelling, and property value in making a credit decision. with § 1003.4(a)(30) by reporting an unpaid that there is a balloon payment, as defined If a financial institution makes a credit leasehold. by Regulation Z, 12 CFR 1026.18(s)(5)(i), at decision without relying on a property value, 3. Multiple properties. See comment the end of the loan term. The multifamily the financial institution complies with 4(a)(9)–2 regarding transactions involving dwelling is a dwelling under § 1003.2(f), but § 1003.4(a)(28) by reporting that the multiple properties with more than one not under Regulation Z, 12 CFR requirement is not applicable since no property taken as security. 1026.2(a)(19). In this example, the financial property value was relied on in making the 4. Manufactured home community. A institution should report the business- credit decision. manufactured home community that is a purpose transaction as having a balloon multifamily dwelling is not considered a payment under § 1003.4(a)(27)(i), assuming Paragraph 4(a)(29) manufactured home for purposes of the other requirements of this part are met. 1. Classification under State law. A § 1003.4(a)(30). Aside from these distinctions, financial financial institution should report a covered 5. Direct ownership. An applicant or institutions may rely on the definitions and loan that is or would have been secured only borrower has a direct ownership interest in related commentary provided in the by a manufactured home but not the land on the land on which the dwelling is or is to be

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located when it has a more than possessory Paragraph 4(a)(32) readily available to the financial institution real property ownership interest in the land 1. Affordable housing income restrictions. at the time final action is taken and on the such as fee simple ownership. For purposes of § 1003.4(a)(32), affordable financial institution’s own procedures in 6. Scope of requirement. A financial housing income-restricted units are reporting the information required by institution reports that the requirement is not individual dwelling units that have § 1003.4(a)(32). Information readily available applicable for a covered loan where the restrictions based on the income level of could include, for example, information dwelling related to the property identified in occupants pursuant to restrictive covenants provided by an applicant that the financial § 1003.4(a)(9) is not a manufactured home. encumbering the property. Such income institution reasonably believes, information For partially exempt transactions under levels are frequently expressed as a contained in a property valuation or § 1003.3(d), an insured depository institution percentage of area median income by inspection, or information obtained from or insured credit union is not required to household size as established by the U.S. public records. report the information specified in Department of Housing and Urban 6. Scope of requirement. A financial § 1003.4(a)(30). See § 1003.3(d) and related Development or another agency responsible institution reports that the requirement is not commentary. for implementing the applicable affordable applicable if the property securing the Paragraph 4(a)(31) housing program. Such restrictions are covered loan or, in the case of an application, proposed to secure the covered loan is not a 1. Multiple properties. See comment frequently part of compliance with programs that provide public funds, special tax multifamily dwelling. For partially exempt 4(a)(9)–2 regarding transactions involving transactions under § 1003.3(d), an insured multiple properties with more than one treatment, or density bonuses to encourage development or preservation of affordable depository institution or insured credit union property taken as security. is not required to report the information 2. Manufactured home community. For an housing. Such restrictions are frequently evidenced by a use agreement, regulatory specified in § 1003.4(a)(32). See § 1003.3(d) application or covered loan secured by a and related commentary. manufactured home community, the agreement, land use restriction agreement, financial institution should include in the housing assistance payments contract, or Paragraph 4(a)(33) number of individual dwelling units the total similar agreement. Rent control or rent 1. Agents. If a financial institution is number of manufactured home sites that stabilization laws, and the acceptance by the reporting actions taken by its agent consistent secure the loan and are available for owner or manager of a multifamily dwelling with comment 4(a)–4, the agent is not occupancy, regardless of whether the sites of Housing Choice Vouchers (24 CFR part considered the financial institution for the are currently occupied or have manufactured 982) or other similar forms of portable purposes of § 1003.4(a)(33). For example, homes currently attached. A financial housing assistance that are tied to an assume that an applicant submitted an institution may include in the number of occupant and not an individual dwelling application to Financial Institution A, and individual dwelling units other units such as unit, are not affordable housing income- Financial Institution A made the credit recreational vehicle pads, manager restricted dwelling units for purposes of decision acting as Financial Institution B’s apartments, rental apartments, site-built § 1003.4(a)(32). agent under State law. A covered loan was homes or other rentable space that are 2. Federal affordable housing sources. originated and the obligation arising from a ancillary to the operation of the secured Examples of Federal programs and funding covered loan was initially payable to property if it considers such units under its sources that may result in individual Financial Institution A. Financial Institution underwriting guidelines or the guidelines of dwelling units that are reportable under B purchased the loan. Financial Institution B an investor, or if it tracks the number of such § 1003.4(a)(32) include, but are not limited reports the origination and not the purchase, units for its own internal purposes. For a to: and indicates that the application was not loan secured by a single manufactured home i. Affordable housing programs pursuant to submitted directly to the financial institution that is or will be located in a manufactured Section 8 of the United States Housing Act and that the transaction was not initially home community, the financial institution of 1937 (42 U.S.C. 1437f); payable to the financial institution. ii. Public housing (42 U.S.C. 1437a(b)(6)); should report one individual dwelling unit. Paragraph 4(a)(33)(i) 3. Condominium and cooperative projects. iii. The HOME Investment Partnerships For a covered loan secured by a program (24 CFR part 92); 1. General. Except for partially exempt condominium or cooperative property, the iv. The Community Development Block transactions under § 1003.3(d), financial institution reports the total number Grant program (24 CFR part 570); § 1003.4(a)(33)(i) requires a financial of individual dwelling units securing the v. Multifamily tax subsidy project funding institution to indicate whether the applicant covered loan or proposed to secure the through tax-exempt bonds or tax credits (26 or borrower submitted the application covered loan in the case of an application. U.S.C. 42; 26 U.S.C. 142(d)); directly to the financial institution that is For example: vi. Project-based vouchers (24 CFR part reporting the covered loan or application. i. Assume that a loan is secured by the 983); The following scenarios demonstrate whether entirety of a cooperative property. The vii. Federal Home Loan Bank affordable an application was submitted directly to the financial institution would report the number housing program funding (12 CFR part 1291); financial institution that is reporting the of individual dwelling units in the and covered loan or application. cooperative property. viii. Rural Housing Service multifamily i. The application was submitted directly ii. Assume that a covered loan is secured housing loans and grants (7 CFR part 3560). to the financial institution if the mortgage by 30 individual dwelling units in a 3. State and local government affordable loan originator identified pursuant to condominium property that contains 100 housing sources. Examples of State and local § 1003.4(a)(34) was an employee of the individual dwelling units and that the loan sources that may result in individual reporting financial institution when the is not exempt from Regulation C under dwelling units that are reportable under originator performed the origination § 1003.3(c)(3). The financial institution § 1003.4(a)(32) include, but are not limited activities for the covered loan or application reports 30 individual dwelling units. to: State or local administration of Federal that is being reported. 4. Best information available. A financial funds or programs; State or local funding ii. The application was also submitted institution may rely on the best information programs for affordable housing or rental directly to the financial institution reporting readily available to the financial institution assistance, including programs operated by the covered loan or application if the at the time final action is taken and on the independent public authorities; inclusionary reporting financial institution directed the financial institution’s own procedures in zoning laws; and tax abatement or tax applicant to a third-party agent (e.g., a credit reporting the information required by increment financing contingent on affordable union service organization) that performed § 1003.4(a)(31). Information readily available housing requirements. loan origination activities on behalf of the could include, for example, information 4. Multiple properties. See comment financial institution and did not assist the provided by an applicant that the financial 4(a)(9)–2 regarding transactions involving applicant with applying for covered loans institution reasonably believes, information multiple properties with more than one with other institutions. contained in a property valuation or property taken as security. iii. If an applicant contacted and inspection, or information obtained from 5. Best information available. A financial completed an application with a broker or public records. institution may rely on the best information correspondent that forwarded the application

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to a financial institution for approval, an mortgage loan originator is not required to portfolio or sell the covered loan. For application was not submitted to the obtain and has not been assigned an NMLSR example, if a financial institution uses an financial institution. ID, a financial institution complies with AUS developed by a securitizer to evaluate Paragraph 4(a)(33)(ii) § 1003.4(a)(34) by reporting that the an application and intends to sell the covered requirement is not applicable. loan to that securitizer but ultimately does 1. General. Except for partially exempt 3. Multiple mortgage loan originators. If not sell the covered loan and instead holds transactions under § 1003.3(d), more than one individual associated with a the covered loan in its portfolio, the financial § 1003.4(a)(33)(ii) requires financial covered loan or application meets the institution complies with § 1003.4(a)(35) by institutions to report whether the obligation definition of a mortgage loan originator, as reporting the name of the securitizer’s AUS arising from a covered loan was or, in the defined in Regulation G, 12 CFR 1007.102, or that the institution used to evaluate the case of an application, would have been Regulation H, 12 CFR 1008.23, a financial application and the result generated by that initially payable to the institution. An institution complies with § 1003.4(a)(34) by system. Similarly, if a financial institution obligation is initially payable to the reporting the NMLSR ID of the individual uses an AUS developed by a securitizer to institution if the obligation is initially mortgage loan originator with primary evaluate an application to determine whether payable either on the face of the note or responsibility for the transaction as of the to originate the covered loan but does not contract to the financial institution that is date of action taken pursuant to intend to sell the covered loan to that reporting the covered loan or application. For § 1003.4(a)(8)(ii). A financial institution that securitizer and instead holds the covered example, if a financial institution reported an establishes and follows a reasonable, written loan in its portfolio, the financial institution origination of a covered loan that it approved policy for determining which individual complies with § 1003.4(a)(35) by reporting prior to closing, that closed in the name of mortgage loan originator has primary the name of the securitizer’s AUS that the a third-party, such as a correspondent lender, responsibility for the reported transaction as institution used to evaluate the application and that the financial institution purchased of the date of action taken complies with and the result generated by that system. after closing, the covered loan was not § 1003.4(a)(34). iii. A financial institution that uses an initially payable to the financial institution. 4. Purchased loans. If a financial AUS, as defined in § 1003.4(a)(35)(ii), that is 2. Applications. A financial institution institution purchases a covered loan that developed by a securitizer to evaluate an complies with § 1003.4(a)(33)(ii) by reporting satisfies the coverage criteria of Regulation Z, application, must report the name of the AUS that the requirement is not applicable if the 12 CFR 1026.36(g), and that was originated it used to evaluate the application and the institution had not determined whether the prior to January 10, 2014, the financial result generated by that system, regardless of covered loan would have been initially institution complies with § 1003.4(a)(34) by whether the securitizer intends to hold the payable to the institution reporting the reporting that the requirement is not covered loan it purchased from the financial application when the application was applicable. In addition, if a financial institution in its portfolio or securitize the withdrawn, denied, or closed for institution purchases a covered loan that covered loan. For example, if a financial incompleteness. does not satisfy the coverage criteria of institution uses an AUS developed by a Paragraph 4(a)(34) Regulation Z, 12 CFR 1026.36(g), and that securitizer to evaluate an application and the 1. NMLSR ID. Except for partially exempt was originated prior to January 1, 2018, the financial institution sells the covered loan to transactions under § 1003.3(d), financial institution complies with that securitizer but the securitizer holds the § 1003.4(a)(34) requires a financial institution § 1003.4(a)(34) by reporting that the covered loan it purchased in its portfolio, the to report the Nationwide Mortgage Licensing requirement is not applicable. Purchasers of financial institution complies with System and Registry unique identifier both such types of covered loans may report § 1003.4(a)(35) by reporting the name of the (NMLSR ID) for the mortgage loan originator, the NMLSR ID. securitizer’s AUS that the institution used to as defined in Regulation G, 12 CFR 1007.102, Paragraph 4(a)(35) evaluate the application and the result or Regulation H, 12 CFR 1008.23, as 1. Automated underwriting system data— generated by that system. applicable. The NMLSR ID is a unique general. Except for purchased covered loans iv. A financial institution, which is also a number or other identifier generally assigned and partially exempt transactions under securitizer, that uses its own AUS, as defined to individuals registered or licensed through § 1003.3(d), § 1003.4(a)(35) requires a in § 1003.4(a)(35)(ii), to evaluate an NMLSR to provide loan originating services. financial institution to report the name of the application, must report the name of the AUS For more information, see the Secure and automated underwriting system (AUS) used it used to evaluate the application and the Fair Enforcement for Mortgage Licensing Act by the financial institution to evaluate the result generated by that system, regardless of of 2008, title V of the Housing and Economic application and the result generated by that whether the financial institution intends to Recovery Act of 2008 (S.A.F.E. Act), 12 AUS. The following scenarios illustrate when hold the covered loan it originates in its U.S.C. 5101 et seq., and its implementing a financial institution reports the name of the portfolio, purchase the covered loan, or regulations (12 CFR part 1007 and 12 CFR AUS used by the financial institution to securitize the covered loan. For example, if part 1008). evaluate the application and the result a financial institution, which is also a 2. Mortgage loan originator without generated by that AUS. securitizer, has developed its own AUS and NMLSR ID. An NMLSR ID for the mortgage i. A financial institution that uses an AUS, uses that AUS to evaluate an application that loan originator is not required by as defined in § 1003.4(a)(35)(ii), to evaluate it intends to originate and hold in its § 1003.4(a)(34) to be reported by a financial an application, must report the name of the portfolio and not purchase or securitize the institution if the mortgage loan originator is AUS used by the financial institution to covered loan, the financial institution not required to obtain and has not been evaluate the application and the result complies with § 1003.4(a)(35) by reporting assigned an NMLSR ID. For example, certain generated by that system, regardless of the name of its AUS that it used to evaluate individual mortgage loan originators may not whether the AUS was used in its the application and the result generated by be required to obtain an NMLSR ID for the underwriting process. For example, if a that system. particular transaction being reported by the financial institution uses an AUS to evaluate 2. Definition of automated underwriting financial institution, such as a commercial an application prior to submitting the system. A financial institution must report loan. However, some mortgage loan application through its underwriting process, the information required by § 1003.4(a)(35)(i) originators may have obtained an NMLSR ID the financial institution complies with if the financial institution uses an automated even if they are not required to obtain one § 1003.4(a)(35) by reporting the name of the underwriting system (AUS), as defined in for that particular transaction. If a mortgage AUS it used to evaluate the application and § 1003.4(a)(35)(ii), to evaluate an application. loan originator has been assigned an NMLSR the result generated by that system. To be covered by the definition in ID, a financial institution complies with ii. A financial institution that uses an AUS, § 1003.4(a)(35)(ii), a system must be an § 1003.4(a)(34) by reporting the mortgage as defined in § 1003.4(a)(35)(ii), to evaluate electronic tool that has been developed by a loan originator’s NMLSR ID regardless of an application, must report the name of the securitizer, Federal government insurer, or a whether the mortgage loan originator is AUS it used to evaluate the application and Federal government guarantor of closed-end required to obtain an NMLSR ID for the the result generated by that system, mortgage loans or open-end lines of credit. A particular transaction being reported by the regardless of whether the financial institution person is a securitizer, Federal government financial institution. In the event that the intends to hold the covered loan in its insurer, or Federal government guarantor of

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closed-end mortgage loans or open-end lines purchased covered loans, the name of the again evaluates the application with of credit, respectively, if it has securitized, AUS used by the financial institution to Securitizer A’s AUS, the financial institution provided Federal government insurance, or evaluate the application and the result complies with § 1003.4(a)(35) by reporting provided a Federal government guarantee for generated by that AUS as determined by the the name of Securitizer A’s AUS and the a closed-end mortgage loan or open-end line following principles. To determine what second AUS result. Similarly, if a financial of credit at any point in time. A person may AUS (or AUSs) and result (or results) to institution obtains a result from an AUS that be a securitizer, Federal government insurer, report under § 1003.4(a)(35), a financial requires the financial institution to or Federal government guarantor of closed- institution follows each of the principles that underwrite the loan manually, but the end mortgage loans or open-end lines of is applicable to the application in question, financial institution subsequently processes credit, respectively, for purposes of in the order in which they are set forth the application through a different AUS that § 1003.4(a)(35) even if it is not actively below. also generates a result, the financial securitizing, insuring, or guaranteeing closed- i. If a financial institution obtains two or institution complies with § 1003.4(a)(35) by end mortgage loans or open-end lines of more AUS results and the AUS generating reporting the name of the second AUS that credit at the time a financial institution uses one of those results corresponds to the loan it used to evaluate the application and the the AUS to evaluate an application. Where type reported pursuant to § 1003.4(a)(2), the AUS result generated by that system. the person that developed the electronic tool financial institution complies with iv. If a financial institution obtains two or has never been a securitizer, Federal § 1003.4(a)(35) by reporting that AUS name more AUS results at the same time and the government insurer, or Federal government and result. For example, if a financial principles in comment 4(a)(35)–3.i through guarantor of closed-end mortgage loans or institution evaluates an application using the .iii do not apply, the financial institution open-end lines of credit, respectively, at the Federal Housing Administration’s (FHA) complies with § 1003.4(a)(35) by reporting time a financial institution uses the tool to Technology Open to Approved Lenders the name of all of the AUSs used by the evaluate an application, the financial (TOTAL) Scorecard and subsequently financial institution to evaluate the institution complies with § 1003.4(a)(35) by evaluates the application with an AUS used application and the results generated by each reporting that the requirement is not to determine eligibility for a non-FHA loan, of those systems. For example, if a financial applicable because an AUS was not used to but ultimately originates an FHA loan, the institution simultaneously evaluates an evaluate the application. If a financial financial institution complies with application with the AUS of Securitizer A institution has developed its own proprietary § 1003.4(a)(35) by reporting TOTAL and the AUS of Securitizer B, the financial system that it uses to evaluate an application Scorecard and the result generated by that institution complies with § 1003.4(a)(35) by and the financial institution is also a system. If a financial institution obtains two reporting the name of both Securitizer A’s securitizer, then the financial institution or more AUS results and more than one of AUS and Securitizer B’s AUS and the results complies with § 1003.4(a)(35) by reporting those AUS results is generated by a system generated by each of those systems. In any the name of that system and the result that corresponds to the loan type reported event, however, the financial institution does generated by that system. On the other hand, pursuant to § 1003.4(a)(2), the financial not report more than five AUSs and five if a financial institution has developed its institution identifies which AUS result results. If more than five AUSs and five own proprietary system that it uses to should be reported by following the principle results meet the criteria in this principle, the evaluate an application and the financial set forth below in comment 4(a)(35)–3.ii. financial institution complies with institution is not a securitizer, then the ii. If a financial institution obtains two or § 1003.4(a)(35) by choosing any five among financial institution is not required by more AUS results and the AUS generating them to report. § 1003.4(a)(35) to report the use of that one of those results corresponds to the 4. Transactions for which an automated system and the result generated by that purchaser, insurer, or guarantor, if any, the underwriting system was not used to evaluate system. In addition, for an AUS to be covered financial institution complies with the application. Section 1003.4(a)(35) does by the definition in § 1003.4(a)(35)(ii), the § 1003.4(a)(35) by reporting that AUS name not require a financial institution to evaluate system must provide a result regarding both and result. For example, if a financial an application using an automated the credit risk of the applicant and the institution evaluates an application with the underwriting system (AUS), as defined in eligibility of the covered loan to be AUS of Securitizer A and subsequently § 1003.4(a)(35)(ii). For example, if a financial originated, purchased, insured, or guaranteed evaluates the application with the AUS of institution only manually underwrites an by the securitizer, Federal government Securitizer B, but the financial institution application and does not use an AUS to insurer, or Federal government guarantor that ultimately originates a covered loan that it evaluate the application, the financial developed the system being used to evaluate sells within the same calendar year to institution complies with § 1003.4(a)(35) by the application. For example, if a system is Securitizer A, the financial institution reporting that the requirement is not an electronic tool that provides a complies with § 1003.4(a)(35) by reporting applicable since an AUS was not used to determination of the eligibility of the covered the name of Securitizer A’s AUS and the evaluate the application. loan to be originated, purchased, insured, or result generated by that system. If a financial 5. Purchased covered loan. A financial guaranteed by the securitizer, Federal institution obtains two or more AUS results institution complies with § 1003.4(a)(35) by government insurer, or Federal government and more than one of those AUS results is reporting that the requirement is not guarantor that developed the system being generated by a system that corresponds to the applicable when the covered loan is a used by a financial institution to evaluate the purchaser, insurer, or guarantor, if any, the purchased covered loan. application, but the system does not also financial institution identifies which AUS 6. Non-natural person. When the applicant provide an assessment of the result should be reported by following the and co-applicant, if applicable, are not creditworthiness of the applicant—such as an principle set forth below in comment natural persons, a financial institution evaluation of the applicant’s income, debt, 4(a)(35)–3.iii. complies with § 1003.4(a)(35) by reporting and credit history—then that system does not iii. If a financial institution obtains two or that the requirement is not applicable. qualify as an AUS, as defined in more AUS results and none of the systems 7. Determination of securitizer, Federal § 1003.4(a)(35)(ii). A financial institution that generating those results correspond to the government insurer, or Federal government uses a system that is not an AUS, as defined purchaser, insurer, or guarantor, if any, or the guarantor. Section 1003.4(a)(35)(ii) provides in § 1003.4(a)(35)(ii), to evaluate an financial institution is following this that an ‘‘automated underwriting system’’ application does not report the information principle because more than one AUS result means an electronic tool developed by a required by § 1003.4(a)(35)(i). is generated by a system that corresponds to securitizer, Federal government insurer, or 3. Reporting automated underwriting either the loan type or the purchaser, insurer, Federal government guarantor of closed-end system data—multiple results. When a or guarantor, the financial institution mortgage loans or open-end lines of credit financial institution uses one or more complies with § 1003.4(a)(35) by reporting that provides a result regarding the credit risk automated underwriting systems (AUS) to the AUS result generated closest in time to of the applicant and whether the covered evaluate the application and the system or the credit decision and the name of the AUS loan is eligible to be originated, purchased, systems generate two or more results, the that generated that result. For example, if a insured, or guaranteed by that securitizer, financial institution complies with financial institution evaluates an application Federal government insurer, or Federal § 1003.4(a)(35) by reporting, except for with the AUS of Securitizer A, subsequently government guarantor. A person is a

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securitizer, Federal government insurer, or Paragraph 4(a)(37) requirements for all applications for Federal government guarantor of closed-end 1. Open-end line of credit. Except for open-end lines of credit that it receives, mortgage loans or open-end lines of credit, partially exempt transactions under open-end lines of credit that it respectively, if it has ever securitized, § 1003.3(d), § 1003.4(a)(37) requires a originates, and open-end lines of credit insured, or guaranteed a closed-end mortgage financial institution to identify whether the that it purchases that otherwise would loan or open-end line of credit. If a financial covered loan or the application is for an institution knows or reasonably believes that have been covered loans during the open-end line of credit. See comments 2(o)– calendar year during which final action the system it is using to evaluate an 1 and –2 for a discussion of open-end line application is an electronic tool that has been of credit and extension of credit. is taken on the excluded open-end line developed by a securitizer, Federal of credit; or Paragraph 4(a)(38) government insurer, or Federal government * * * * * guarantor of closed-end mortgage loans or 1. Primary purpose. Except for partially ■ open-end lines of credit, then the financial exempt transactions under § 1003.3(d), 8. Effective January 1, 2022, institution complies with § 1003.4(a)(35) by § 1003.4(a)(38) requires a financial institution supplement I to part 1003, as amended reporting the name of that system and the to identify whether the covered loan is, or the at 82 FR 43088, September 13, 2017, is result generated by that system. Knowledge application is for a covered loan that will be, further amended as follows: or reasonable belief could, for example, be made primarily for a business or commercial ■ a. Under Section 1003.2—Definitions, based on a sales agreement or other related purpose. See comment 3(c)(10)–2 for a revise 2(g) Financial Institution; and documents, the financial institution’s discussion of how to determine the primary ■ previous transactions or relationship with the b. Under Section 1003.3—Exempt purpose of the transaction and the standard Institutions and Excluded and Partially developer of the electronic tool, or applicable to a financial institution’s representations made by the developer of the determination of the primary purpose of the Exempt Transactions, under 3(c) electronic tool demonstrating that the transaction. See comments 3(c)(10)–3 and 4 Excluded Transactions, revise developer of the electronic tool is a for examples of excluded and reportable Paragraph 3(c)(12). securitizer, Federal government insurer, or business- or commercial-purpose The revisions read as follows: Federal government guarantor of closed-end transactions. mortgage loans or open-end lines of credit. If Supplement I to Part 1003—Official a financial institution does not know or * * * * * Interpretations ■ 6. Effective January 1, 2022, § 1003.2, reasonably believe that the system it is using * * * * * to evaluate an application is an electronic as amended at 82 FR 43088, September tool that has been developed by a securitizer, 13, 2017, is further amended by revising Section 1003.2—Definitions Federal government insurer, or Federal paragraphs (g)(1)(v)(B) and (g)(2)(ii)(B) * * * * * government guarantor of closed-end mortgage to read as follows: loans or open-end lines of credit, the 2(g) Financial Institution financial institution complies with § 1003.2 Definitions. 1. Preceding calendar year and preceding § 1003.4(a)(35) by reporting that the * * * * * December 31. The definition of financial requirement is not applicable, provided that (g) * * * institution refers both to the preceding the financial institution maintains (1) * * * calendar year and the preceding December procedures reasonably adapted to determine 31. These terms refer to the calendar year and whether the electronic tool it is using to (v) * * * the December 31 preceding the current evaluate an application meets the definition (B) In each of the two preceding calendar year. For example, in 2019, the in § 1003.4(a)(35)(ii). Reasonably adapted calendar years, originated at least 100 preceding calendar year is 2018 and the procedures include attempting to determine open-end lines of credit that are not preceding December 31 is December 31, with reasonable frequency, such as annually, excluded from this part pursuant to 2018. Accordingly, in 2019, Financial whether the developer of the electronic tool § 1003.3(c)(1) through (10); and Institution A satisfies the asset-size threshold is a securitizer, Federal government insurer, (2) * * * described in § 1003.2(g)(1)(i) if its assets or Federal government guarantor of closed- (ii) * * * exceeded the threshold specified in comment end mortgage loans or open-end lines of (B) In each of the two preceding 2(g)–2 on December 31, 2018. Likewise, in credit. For example: calendar years, originated at least 100 2020, Financial Institution A does not meet i. In the course of renewing an annual sales open-end lines of credit that are not the loan-volume test described in agreement the developer of the electronic § 1003.2(g)(1)(v)(A) if it originated fewer than tool represents to the financial institution excluded from this part pursuant to 25 closed-end mortgage loans during either that it has never been a securitizer, Federal § 1003.3(c)(1) through (10). 2018 or 2019. government insurer, or Federal government * * * * * 2. [Reserved] guarantor of closed-end mortgage loans or ■ 7. Effective January 1, 2022, § 1003.3, 3. Merger or acquisition—coverage of open-end lines of credit. On this basis, the as amended at 82 FR 43088, September surviving or newly formed institution. After financial institution does not know or a merger or acquisition, the surviving or reasonably believe that the system it is using 13, 2017, is further amended by revising newly formed institution is a financial to evaluate an application is an electronic paragraph (c)(12) to read as follows: institution under § 1003.2(g) if it, considering tool that has been developed by a securitizer, § 1003.3 Exempt institutions and excluded the combined assets, location, and lending Federal government insurer, or Federal and partially exempt transactions. activity of the surviving or newly formed government guarantor of closed-end mortgage institution and the merged or acquired loans or open-end lines of credit and * * * * * institutions or acquired branches, satisfies complies with § 1003.4(a)(35) by reporting (c) * * * the criteria included in § 1003.2(g). For that the requirement is not applicable. (12) An open-end line of credit, if the example, A and B merge. The surviving or ii. Based on their previous transactions a financial institution originated fewer newly formed institution meets the loan financial institution is aware that the than 100 open-end lines of credit in threshold described in § 1003.2(g)(1)(v)(B) if developer of the electronic tool it is using to either of the two preceding calendar the surviving or newly formed institution, A, evaluate an application has securitized a years; a financial institution may and B originated a combined total of at least closed-end mortgage loan or open-end line of collect, record, report, and disclose 100 open-end lines of credit in each of the credit in the past. On this basis, the financial two preceding calendar years. Likewise, the institution knows or reasonably believes that information, as described in §§ 1003.4 surviving or newly formed institution meets the developer of the electronic tool is a and 1003.5, for such an excluded open- the asset-size threshold in § 1003.2(g)(1)(i) if securitizer and complies with § 1003.4(a)(35) end line of credit as though it were a its assets and the combined assets of A and by reporting the name of that system and the covered loan, provided that the B on December 31 of the preceding calendar result generated by that system. financial institution complies with such year exceeded the threshold described in

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§ 1003.2(g)(1)(i). Comment 2(g)–4 discusses a remains not covered after acquiring a branch Section 1003.3—Exempt Institutions and financial institution’s responsibilities during office of a covered institution, data collection Excluded and Partially Exempt Transactions the calendar year of a merger. is required for transactions of the acquired 3(c) Excluded Transactions 4. Merger or acquisition—coverage for branch office that take place prior to the calendar year of merger or acquisition. The acquisition. Data collection by the acquired * * * * * scenarios described below illustrate a branch office is optional for transactions Paragraph 3(c)(12) financial institution’s responsibilities for the taking place in the remainder of the calendar 1. General. Section 1003.3(c)(12) provides calendar year of a merger or acquisition. For year after the acquisition. that an open-end line of credit is an excluded purposes of these illustrations, a ‘‘covered iv. Two covered institutions merge. The institution’’ means a financial institution, as transaction if a financial institution surviving or newly formed institution is a defined in § 1003.2(g), that is not exempt originated fewer than 100 open-end lines of from reporting under § 1003.3(a), and ‘‘an covered institution. Data collection is credit in either of the two preceding calendar institution that is not covered’’ means either required for the entire calendar year of the years. For example, assume that a bank is a an institution that is not a financial merger. The surviving or newly formed financial institution in 2022 under institution, as defined in § 1003.2(g), or an institution files either a consolidated § 1003.2(g) because it originated 50 closed- institution that is exempt from reporting submission or separate submissions for that end mortgage loans in 2020, 75 closed-end under § 1003.3(a). calendar year. When a covered institution mortgage loans in 2021, and met all of the i. Two institutions that are not covered acquires a branch office of a covered other requirements under § 1003.2(g)(1). Also merge. The surviving or newly formed institution, data collection is required for the assume that the bank originated 75 and 85 institution meets all of the requirements entire calendar year of the merger. Data for open-end lines of credit in 2020 and 2021, necessary to be a covered institution. No data the acquired branch office may be submitted respectively. The closed-end mortgage loans collection is required for the calendar year of by either institution. that the bank originated or purchased, or for the merger (even though the merger creates 5. Originations. Whether an institution is a which it received applications, during 2022 an institution that meets all of the financial institution depends in part on are covered loans and must be reported, requirements necessary to be a covered whether the institution originated at least 25 unless they otherwise are excluded institution). When a branch office of an closed-end mortgage loans in each of the two transactions under § 1003.3(c). However, the institution that is not covered is acquired by preceding calendar years or at least 100 open- open-end lines of credit that the bank originated or purchased, or for which it another institution that is not covered, and end lines of credit in each of the two the acquisition results in a covered received applications, during 2022 are preceding calendar years. Comments 4(a)–2 institution, no data collection is required for excluded transactions under § 1003.3(c)(12) through –4 discuss whether activities with the calendar year of the acquisition. and need not be reported. See comments ii. A covered institution and an institution respect to a particular closed-end mortgage 4(a)–2 through –4 for guidance about the that is not covered merge. The covered loan or open-end line of credit constitute an activities that constitute an origination. institution is the surviving institution, or a origination for purposes of § 1003.2(g). 2. Optional reporting. A financial new covered institution is formed. For the 6. Branches of foreign banks—treated as institution may report applications for, calendar year of the merger, data collection banks. A Federal branch or a State-licensed originations of, or purchases of open-end is required for covered loans and or insured branch of a foreign bank that lines of credit that are excluded transactions applications handled in the offices of the meets the definition of a ‘‘bank’’ under because the financial institution originated merged institution that was previously section 3(a)(1) of the Federal Deposit fewer than 100 open-end lines of credit in covered and is optional for covered loans and Insurance Act (12 U.S.C. 1813(a)) is a bank either of the two preceding calendar years. applications handled in offices of the merged for the purposes of § 1003.2(g). However, a financial institution that chooses institution that was previously not covered. 7. Branches and offices of foreign banks to report such excluded applications for, When a covered institution acquires a branch and other entities—treated as nondepository originations of, or purchases of open-end office of an institution that is not covered, financial institutions. A Federal agency, lines of credit must report all such data collection is optional for covered loans State-licensed agency, State-licensed applications for open-end lines of credit and applications handled by the acquired uninsured branch of a foreign bank, which it receives, open-end lines of credit branch office for the calendar year of the commercial lending company owned or that it originates, and open-end lines of credit acquisition. controlled by a foreign bank, or entity that it purchases that otherwise would be iii. A covered institution and an institution operating under section 25 or 25A of the covered loans for a given calendar year. Note that is not covered merge. The institution Federal Reserve Act, 12 U.S.C. 601 and 611 that applications which remain pending at that is not covered is the surviving (Edge Act and agreement corporations) may the end of a calendar year are not reported, institution, or a new institution that is not not meet the definition of ‘‘bank’’ under the as described in comment 4(a)(8)(i)–14. covered is formed. For the calendar year of Federal Deposit Insurance Act and may the merger, data collection is required for * * * * * thereby fail to satisfy the definition of a covered loans and applications handled in Dated: October 9, 2019. depository financial institution under offices of the previously covered institution § 1003.2(g)(1). An entity is nonetheless a Kathleen L. Kraninger, that took place prior to the merger. After the Director, Bureau of Consumer Financial merger date, data collection is optional for financial institution if it meets the definition Protection. covered loans and applications handled in of nondepository financial institution under the offices of the institution that was § 1003.2(g)(2). [FR Doc. 2019–22561 Filed 10–28–19; 8:45 am] previously covered. When an institution * * * * * BILLING CODE 4810–AM–P

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Reader Aids Federal Register Vol. 84, No. 209 Tuesday, October 29, 2019

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING OCTOBER

Federal Register/Code of Federal Regulations At the end of each month the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. 6 CFR Presidential Documents 2 CFR Executive orders and proclamations 741–6000 417...... 52993 37...... 55017 The United States Government Manual 741–6000 3 CFR 7 CFR Other Services Proclamations: 1...... 51938, 56097 Electronic and on-line services (voice) 741–6020 9933...... 52737 51...... 51939 Privacy Act Compilation 741–6050 9934...... 52739 205...... 53577, 56673 9935...... 52741 251...... 52997 9936...... 52983 400...... 52993 ELECTRONIC RESEARCH 9937...... 52985 718...... 53579 930...... 53003 World Wide Web 9938...... 52987 9939...... 52989 1205...... 55019 Full text of the daily Federal Register, CFR and other publications 9940...... 52991 1412...... 53579 is located at: www.govinfo.gov. 9941...... 53983 3565...... 55034 Proposed Rules: Federal Register information and research tools, including Public 9942...... 53985 205...... 52041, 55866 Inspection List and electronic text are located at: 9943...... 53987 273...... 52809, 55870 www.federalregister.gov. 9944...... 53989 9945...... 53991 922...... 52384 E-mail 9946...... 54763 925...... 57369 9947...... 55485 944...... 57369 FEDREGTOC (Daily Federal Register Table of Contents Electronic 9948...... 55489 966...... 52042 Mailing List) is an open e-mail service that provides subscribers 9949...... 55491 8 CFR with a digital form of the Federal Register Table of Contents. The 9950...... 55493 digital form of the Federal Register Table of Contents includes 9951...... 56367 103...... 52357 HTML and PDF links to the full text of each document. 9952...... 57305 212...... 52357 To join or leave, go to https://public.govdelivery.com/accounts/ 9953...... 57307 213...... 52357 USGPOOFR/subscriber/new, enter your email address, then 9954...... 57601 214...... 52357 follow the instructions to join, leave, or manage your Executive Orders: 245...... 52357 subscription. 13811 (superseded in 248...... 52357 PENS (Public Law Electronic Notification Service) is an e-mail part by 13889)...... 52743 Proposed Rules: service that notifies subscribers of recently enacted laws. 13836 (Amended by 204...... 55250 Memo. of October 205...... 55250 To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 11, 2019 ...... 56095 245...... 55250 and select Join or leave the list (or change settings); then follow 13837 (Amended by the instructions. Memo. of October 9 CFR FEDREGTOC and PENS are mailing lists only. We cannot 11, 2019 ...... 56095 201...... 56677 respond to specific inquiries. 13839 (Amended by 202...... 56677 Reference questions. Send questions and comments about the Memo. of October 203...... 56677 Federal Register system to: [email protected] 11, 2019 ...... 56095 301...... 52300 13888...... 52355 309...... 52300 The Federal Register staff cannot interpret specific documents or 13889...... 52743 310...... 52300 regulations. 13890...... 53573 13891...... 55235 10 CFR FEDERAL REGISTER PAGES AND DATE, OCTOBER 13892...... 55239 72...... 52747, 54465 13893...... 55487 Proposed Rules: 51937–52356...... 1 56929–57308...... 24 13894...... 55851 72...... 52815 52357–52746...... 2 57309–57600...... 25 13895...... 57309 429...... 52817 52747–52992...... 3 57601–57812...... 28 Administrative Orders: 430 ...... 52817, 52818, 56540 52993–53302...... 4 57813–58004...... 29 Memorandums: 431...... 52386, 56949 53303–53572...... 7 Memorandum of 810...... 52819 53573–53984...... 8 September 24, 955...... 53066 53985–54464...... 9 2019 ...... 52353 12 CFR 54465–54762...... 10 Memorandum of 54763–55016...... 11 October 11, 2019 ...... 56095 3...... 56369 Notices: 6...... 56369 55017–55244...... 15 Notice of October 15, 26...... 54465 55245–55488...... 16 2019 ...... 55857 34...... 53579, 56369 55489–55858...... 17 Notice of October 22, 46...... 54472, 56369 55859–56094...... 18 2019 ...... 56927 160...... 56369 56095–56366...... 21 161...... 56369 56367–56672...... 22 5 CFR 163...... 56369 56673–56928...... 23 185...... 51937 167...... 56369

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201...... 52752 425...... 52393 26 CFR 300...... 56154 204...... 52753 1253...... 54055 1 ...... 53052, 54014, 54027, 36 CFR 212...... 54465 55245 225...... 53579 17 CFR Proposed Rules: Proposed Rules: 238...... 54465 200...... 55055 1 ...... 52398, 52410, 52835, 7...... 57833 323...... 53579 210...... 57162 54067, 54068, 54079, 54529, 294...... 55522 325...... 56929 230...... 53011 55075 348...... 54465 232...... 56938, 57162 37 CFR 701...... 51942, 53278 239...... 57162 27 CFR 1...... 51977 240...... 55055 715...... 53303 9...... 54779 2...... 52363 746...... 53278 270...... 57162 7...... 52363 274...... 57162 Proposed Rules: 1003...... 57945 42...... 51977 Proposed Rules: 9...... 55075, 55082 Proposed Rules: Proposed Rules: 23 ...... 56392, 56950, 57831 30...... 55510 28 CFR 1...... 53090 43...... 57831 208...... 55510 42...... 56401 45...... 57831 Proposed Rules: 217...... 57240 28...... 56397 380...... 57833 252...... 57240 49...... 57831 327...... 52826 210...... 52936 29 CFR 38 CFR 337...... 54044 229...... 52936 2200...... 53052 3...... 54033 364...... 55510 240...... 54062, 56956 2520...... 56894 17...... 57327, 57668 390 ...... 52387, 52827, 52834, 242...... 54794 249...... 52936 2700...... 54782 Proposed Rules: 54045 4022...... 55055 741...... 55510 4...... 55086 18 CFR Proposed Rule: 14 CFR 2...... 56940 10...... 53956 39 CFR 103...... 54533, 55265 13...... 57813 385...... 55498 20...... 56383 516...... 53956 23...... 54476 Proposed Rules: 111...... 51982, 55504 531...... 53956 25...... 53995 292...... 53246 265...... 56385 578...... 53956 39 ...... 51952, 51955, 51957, 375...... 53246 3002...... 53056 579...... 53956 51960, 52754, 53008, 53997, 3004...... 53056 19 CFR 580...... 53956 53999, 54480, 54482, 54490, Proposed Rules: 1915...... 53902 54492, 54765, 55036, 55041, Proposed Rules: 20...... 56406 1926...... 53902 55495, 55859, 56109, 56376, 113...... 55251 111...... 55529 4003...... 53084 56378, 56678, 56680, 56935, 127...... 57832 Ch. III ...... 53840 57313, 57813 133...... 55251, 57832 30 CFR 501...... 53353 148...... 55251 71 ...... 51963, 51964, 52757, 56...... 55500 54001 151...... 55251 40 CFR 177...... 55251 57...... 55500 97 ...... 51965, 51967, 51970, 250...... 55861 9 ...... 54033, 55058, 57612 51971, 56112, 56113 20 CFR 585...... 55861 52 ...... 51983, 51986, 51988, 383...... 57813 52001, 52003, 52005, 52364, 404...... 57319 926...... 56689 406...... 57813 946...... 56696 52368, 52766, 53057, 53061, 1206...... 54773 408...... 57319 53601, 54035, 54498, 54502, 416...... 57319 Proposed Rules: Proposed Rules: 924...... 53349 54785, 55864, 56058, 56121, 25...... 52392 620...... 53037 56385, 56942, 56946, 57822, 686...... 56942 27...... 52392 31 CFR 57846 29...... 52392 21 CFR 1010 ...... 51973, 53053, 54495 55...... 56121 39 ...... 52044, 52047, 53070, 110...... 56381 101...... 57603 Proposed Rules: 53073, 53076, 53082, 54046, 112...... 56381 510...... 53309 208...... 55267 54049, 54051, 55073, 56152, 116...... 56381 520...... 53309 800...... 52411 117...... 56381 56707, 56709, 57655, 57657, 522...... 53309 32 CFR 122...... 56381 57660, 57663, 57829 526...... 53309 71 ...... 52049, 52051, 53346, 529...... 53309 78...... 55056 180 ...... 52369, 52771, 52775, 54053, 54525, 54526, 54528, 556...... 53309 314...... 57326 52778, 53316, 53322, 53326, 54792, 56390 558...... 53309 316...... 51974 53373, 54510, 57331, 57336, 91...... 52392 862...... 57816 637...... 52363 57341, 57619 121...... 52392 874...... 57610 887...... 51974 230...... 56381 125...... 52392 888...... 57320 232...... 56381 33 CFR 135...... 52392 890...... 57321 271...... 54516 244...... 57370 1308...... 57323 100 ...... 51975, 53053, 53314, 282...... 52783 259...... 57370 300...... 56381 Proposed Rules: 54029 117 ...... 53054, 56699, 56701 302...... 56381 15 CFR 117...... 53347 573...... 52055 165 ...... 51975, 52763, 54029, 401...... 56381 734...... 56117 1303...... 56712 54032, 54496, 54783, 55057, 721 ...... 54033, 54518, 55058, 740...... 56117 1315...... 56712 55501, 55502, 55862, 56381, 57612 744...... 54002 56702, 57818, 57820 Proposed Rules: 746...... 56117 22 CFR 328...... 56385 52 ...... 52838, 54080, 55094, 902.1...... 55044 40...... 54996 401...... 57813 55100, 55104, 55107, 56156, Proposed Rules: Proposed Rules: 56407, 56959, 56961, 57836 922...... 52053 23 CFR 100...... 52411 60...... 52055 117...... 53350 62...... 57838 16 CFR 652...... 53599 127...... 53352 63 ...... 52419, 53662, 54278, 1217...... 57315 24 CFR 165 ...... 54783, 56731, 57666 54394, 56288, 56733 1220...... 56684 Ch. IX...... 54009 80...... 57677 1221...... 56684 34 CFR 136...... 56590 Proposed Rules: 25 CFR Proposed Rules: 180...... 52850, 57685 312...... 56391 170...... 55498 263...... 54806 271...... 55871

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282...... 52852 1...... 57343 213...... 57813 385...... 52432 721 ...... 53663, 53670, 54816 2...... 53630 214...... 57813 388...... 54093 25...... 53630 215...... 57813 41 CFR 571...... 54533 27...... 57343 216...... 57813 Ch. X ...... 53094, 55897 217...... 57813 105-70...... 53064 51...... 57629 1039...... 55109 Ch. 301 ...... 55246 54...... 54952 218...... 57813 1250...... 53375 Ch. 304 ...... 55246 61...... 57629 219...... 57813 Ch. 305 ...... 55246 69...... 57629 220...... 57813 1333...... 55114 Ch. 306 ...... 55246 Proposed Rules: 221...... 57813 0...... 53355 222...... 57813 50 CFR 42 CFR 1 ...... 53355, 56734, 56743 223...... 57813 Ch. I ...... 57554 73...... 55881 224...... 57813 17 ...... 52598, 52791, 53336, 412...... 53603 76...... 53355 225...... 57813 54436, 56131 413...... 53603 96...... 56743 227...... 57813 216...... 52372 495...... 53603 228...... 57813 300...... 52035, 52800 48 CFR Proposed Rules: 229...... 57813 622...... 52036, 57367 411...... 55766 Ch. 1...... 54760, 54762 230...... 57813 635 ...... 52806, 54522, 55507, 1001...... 55694 2...... 54760 231...... 57813 56136 1003...... 55694 Proposed Rules: 232...... 57813 648 ...... 52039, 53065, 54041, 2...... 52420 233...... 57813 54790 43 CFR 9...... 52420 234...... 57813 660...... 56137, 56142 235...... 57813 Proposed Rules: 12...... 52425, 55109 665...... 57652, 57827 236...... 57813 3500...... 55873 13...... 52420, 52425 679 ...... 52039, 53343, 53344, 14...... 52428 237...... 57813 44 CFR 238...... 57813 53659, 54791, 55044, 55071, 15...... 52425, 52428 55508, 56150, 56705, 57653 64...... 54520, 56704 16...... 52420, 52425 239...... 57813 19...... 52420 240...... 57813 Proposed Rules: 45 CFR 22...... 52420, 56157 241...... 57813 17 ...... 52058, 53380, 54524, 162...... 57621 25...... 52420 242...... 57813 54732, 56991 29...... 55109 243...... 57813 20...... 55120 46 CFR 30...... 52428 244...... 57813 223...... 54354, 55530 221...... 57813 37...... 52425 270...... 57813 224...... 54354, 55530 307...... 57813 52 ...... 52420, 52428, 55109, 272...... 57813 226...... 54354, 55530 340...... 57813 56157 383...... 52029 229...... 54543 356...... 57813 384...... 52029 1539...... 55894 260...... 55130 501...... 54037 1552...... 55894 386...... 57813 502...... 57037 578...... 57813 261...... 55130 300...... 52852, 57687 Proposed Rules: 49 CFR 580...... 52664 501...... 54087 107...... 57813 624...... 56129 600...... 52852, 57687 503...... 54087 171...... 57813 Proposed Rules: 622 ...... 52438, 52864, 55132, 515...... 54087 190...... 52015, 57813 29...... 52706 55531, 55900, 57378, 57840 535...... 54087 191...... 52180 172...... 56954 648...... 54094 192...... 52180 173...... 56964 660...... 54561, 54579 47 CFR 195...... 52260 350...... 54093 679 ...... 52442, 52852, 56991, 0...... 54040 209...... 57813 355...... 54093 57687

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in today’s List of Public enacted public laws. To Laws. subscribe, go to http:// LIST OF PUBLIC LAWS Public Laws Electronic listserv.gsa.gov/archives/ Last List October 11, 2019 Notification Service publaws-l.html (PENS) Note: No public bills which Note: This service is strictly have become law were for E-mail notification of new received by the Office of the PENS is a free electronic mail laws. The text of laws is not Federal Register for inclusion notification service of newly available through this service. PENS cannot respond to specific inquiries sent to this address.

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