Gramm-Leach Bliley Financial Privacy Rule

17980 Federal Register / Vol. 73, No. 64 / Wednesday, April 2, 2008 / Notices

bank holding company and all of the (BHC Act), Regulation Y (12 CFR Part ACTION: Notice. banks and nonbanking companies 225), and all other applicable statutes owned by the bank holding company, and regulations to become a bank SUMMARY: The information collection including the companies listed below. holding company and/or to acquire the requirements described below will be The applications listed below, as well assets or the ownership of, control of, or submitted to the Office of Management as other related filings required by the the power to vote shares of a bank or and Budget (‘‘OMB’’) for review, as Board, are available for immediate bank holding company and all of the required by the Paperwork Reduction inspection at the Federal Reserve Bank banks and nonbanking companies Act (‘‘PRA’’). The FTC is seeking public indicated. The application also will be owned by the bank holding company, comments on its proposal to extend available for inspection at the offices of including the companies listed below. through July 31, 2011, the current PRA the Board of Governors. Interested The applications listed below, as well clearance for information collection persons may express their views in as other related filings required by the requirements contained in the writing on the standards enumerated in Board, are available for immediate Commission’s Gramm-Leach-Bliley the BHC Act (12 U.S.C. 1842(c)). If the inspection at the Federal Reserve Bank Financial Privacy Rule (‘‘GLB Privacy proposal also involves the acquisition of indicated. The application also will be Rule’’ or ‘‘Rule’’). The current clearance a nonbanking company, the review also available for inspection at the offices of expires on July 31, 2008. includes whether the acquisition of the the Board of Governors. Interested DATES: Comments must be submitted on nonbanking company complies with the persons may express their views in or before June 2, 2008. standards in section 4 of the BHC Act writing on the standards enumerated in ADDRESSES: Interested parties are (12 U.S.C. 1843). Unless otherwise the BHC Act (12 U.S.C. 1842(c)). If the invited to submit written comments. noted, nonbanking activities will be proposal also involves the acquisition of Comments should refer to ‘‘Paperwork conducted throughout the United States. a nonbanking company, the review also Comment: FTC File No. P085405’’ and Additional information on all bank includes whether the acquisition of the may be submitted by any of the holding companies may be obtained nonbanking company complies with the following methods. If, however, the from the National Information Center standards in section 4 of the BHC Act comment contains any material for website at www.ffiec.gov/nic/. (12 U.S.C. 1843). Unless otherwise which confidential treatment is Unless otherwise noted, comments noted, nonbanking activities will be requested, it must be filed in paper regarding each of these applications conducted throughout the United States. form, and the first page of the document must be received at the Reserve Bank Additional information on all bank must be clearly labeled ‘‘Confidential.’’1 indicated or the offices of the Board of holding companies may be obtained 1. Web Site: Comments filed in Governors not later than April 28, 2008. from the National Information Center electronic form should be submitted by A. Federal Reserve Bank of St. Louis website at www.ffiec.gov/nic/. clicking on the following web link: (Glenda Wilson, Community Affairs Unless otherwise noted, comments https://secure.commentworks.com/ftc- Officer) 411 Locust Street, St. Louis, regarding each of these applications glbprivacyrulepra and following the Missouri 63166-2034: must be received at the Reserve Bank instructions on the web-based form. To 1. Lonoke Bancshares, Inc., Lonoke, indicated or the offices of the Board of ensure that the Commission considers Arkansas; to acquire additional shares, Governors not later than April 6, 2008. an electronic comment, you must file it for a total of 13.91 percent of the voting A. Federal Reserve Bank of New on the web-based form at: https:// shares of First Southern Bank, York (Anne MacEwen, Bank secure.commentworks.com/ftc- Batesville, Arkansas. Applications Officer) 33 Liberty Street, glbprivacyrulepra. B. Federal Reserve Bank of Dallas New York, New York 10045-0001: 2. Mail or Hand Delivery: A comment (W. Arthur Tribble, Vice President) 2200 1. National Australia Bank Limited, filed in paper form should include North Pearl Street, Dallas, Texas 75201- National Equities Limited, both of ‘‘Paperwork Comment: FTC File No. 2272: Melbourne, Australia, National P085405’’ both in the text and on the 1. Plains Acquisition Corporation, Americas Investment, Inc., National envelope and should be mailed or Kingwood, Texas; to become a bank Americas Holdings LLC, both of New delivered to the following address: holding company by acquiring 100 York, New York; to become bank Federal Trade Commission/Office of the percent of the voting shares of Plains holding companies by acquiring Great Secretary, Room H-135 (Annex J), 600 State Financial Corporation, Plains, Western Bancorporation, Inc., Omaha, Pennsylvania Avenue, N.W., Texas, and indirectly acquire Plains Nebraska and thereby acquire Great Washington, D.C. 20580. The Bancshares, Inc., Dover, Delaware, and Western Bank, Watertown, South Commission is requesting that any Plains State Bank, Plains, Texas. Dakota. comment filed in paper form be sent by Board of Governors of the Federal Reserve courier or overnight service, if possible. System, March 27, 2008. Board of Governors of the Federal Reserve System, March 27, 2008. The FTC Act and other laws the Robert deV. Frierson, Robert deV. Frierson, Commission administers permit the Deputy Secretary of the Board. Deputy Secretary of the Board. collection of public comments to [FR Doc. E8–6681 Filed 4–1–08; 8:45 am] consider and use in this proceeding as [FR Doc. E8–6682 Filed 4–1–08; 8:45 am] BILLING CODE 6210–01–S appropriate. All timely and responsive BILLING CODE 6210–01–S public comments will be considered by

FEDERAL RESERVE SYSTEM 1 Commission Rule 4.2(d), 16 CFR 4.2(d). The FEDERAL TRADE COMMISSION comment must be accompanied by an explicit Formations of, Acquisitions by, and request for confidential treatment, including the Mergers of Bank Holding Companies Agency Information Collection factual and legal basis for the request, and must Activities; Proposed Collection; identify the specific portions of the comment to be The companies listed in this notice withheld from the public record. The request will Comment Request; Extension be granted or denied by the Commission’s General have applied to the Board for approval, Counsel, consistent with applicable law and the pursuant to the Bank Holding Company AGENCY: Federal Trade Commission public interest. See Commission Rule 4.9(c), 16 CFR Act of 1956 (12 U.S.C. 1841 et seq.) (‘‘Commission’’ or ‘‘FTC’’). 4.9(c).

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the Commission and will be available to the methodology and assumptions used; U.S.C. 6805 (committing to the the public on the FTC website, to the (3) ways to enhance the quality, utility, Commission’s jurisdiction entities that extent practicable, at www.ftc.gov. As a and clarity of the information to be are not specifically subject to another matter of discretion, the FTC makes collected; and (4) ways to minimize the agency’s jurisdiction). every effort to remove home contact burden of the collection of information The burden estimates represent the information for individuals from the on those who are to respond, including FTC staff’s best assessment, based on its public comments it receives before through the use of appropriate knowledge and expertise relating to the placing those comments on the FTC automated, electronic, mechanical, or financial institutions subject to the website. More information, including other technological collection Commission’s jurisdiction under this routine uses permitted by the Privacy techniques or other forms of information law. To derive these estimates, staff Act, may be found in the FTC’s privacy technology, e.g., permitting electronic considered the wide variations in policy at http://www.ftc.gov/ftc/ submission of responses. covered entities. In some instances, privacy.shtm. The GLB Privacy Rule is designed to covered entities may make the required ensure that customers and consumers, FOR FURTHER INFORMATION CONTACT: disclosures in the ordinary course of subject to certain exceptions, will have business, apart from the GLB Privacy Kellie Cosgrove Riley, Senior Attorney, access to the privacy policies of the Division of Privacy and Identity Rule. In addition, some entities may use financial institutions with which they highly automated means to provide the Protection, Bureau of Consumer conduct business. As mandated by the Protection, (202) 326-2252, Federal required disclosures, while others may Gramm-Leach-Bliley Act, 15 U.S.C. rely on methods requiring more manual Trade Commission, 600 Pennsylvania 6801-6809, the Rule requires financial Avenue, N.W., Washington D.C. 20580. effort. The burden estimates shown institutions to disclose to consumers: (1) below include the time that may be SUPPLEMENTARY INFORMATION: Under the initial notice of the financial necessary to train staff to comply with PRA, 44 U.S.C. 3501-3521, federal institution’s privacy policy when the regulations. These figures are agencies must obtain approval from establishing a customer relationship averages based on staff’s best estimate of OMB for each collection of information with a consumer and/or before sharing the burden incurred over the broad they conduct or sponsor. ‘‘Collection of a consumer’s non-public personal spectrum of covered entities. information’’ means agency requests or information with certain nonaffiliated Staff retains its prior estimate of the requirements that members of the public third parties; (2) notice of the number of entities each year that will submit reports, keep records, or provide consumer’s right to opt out of address the GLB Privacy Rule for the information to a third party. 44 U.S.C. information sharing with such parties; first time (5,000) and its estimate of 3502(3), 5 CFR 1320.3(c). As required by (3) annual notice of the institution’s established entities already familiar section 3506(c)(2)(A) of the PRA, the privacy policy to any continuing with the Rule (100,000). While the FTC is providing this opportunity for customer; and (4) notice of changes in number of established entities familiar public comment before requesting that the institution’s practices on with the Rule would theoretically OMB extend the existing paperwork information sharing. These increase each year with the addition of clearance for the GLB Privacy Rule, 16 requirements are subject to the PRA. new entrants, staff retains its previous CFR Part 313 (OMB Control Number The Rule does not require estimate of established entities given 3084-0121). recordkeeping. that a number of the established entities The FTC invites comments on: (1) Estimated annual hours burden: As will close in any given year, and also whether the proposed collection of noted in the original burden estimate for given the difficulty of establishing a information is necessary for the proper the GLB Privacy Rule, determining the more precise estimate. Staff’s burden performance of the functions of the paperwork burden of the Rule’s estimates for new entrants and agency, including whether the disclosure requirements is very difficult established entities are detailed in the information will have practical utility; because of the highly diverse group of charts below. (2) the accuracy of the agency’s estimate affected entities, consisting of financial of the burden of the proposed collection institutions not regulated by a federal Start-up hours and labor costs for new of information, including the validity of financial regulatory agency. See 15 entrants:

Hours per Respond- Approx. Number of Approx. Total Annual Approx. Total Labor Event Hourly wage and labor category* ent Respondents Hrs. Costs

Reviewing internal $31.66 20 5,000 100,000 $3,166,000 policies and devel- managerial/profes- oping GLBA-imple- sional menting instructions**

Creating disclosure $14.71 5 5,000 25,000 $367,750 document or elec- clerical tronic disclosure (including initial, annual, and opt out disclosures)

$32.82 10 50,000 $1,641,000 professional/technical

Disseminating initial $14.71 15 5,000 75,000 $1,103,250 disclosure (including clerical opt out notices)

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Event Hourly wage and Hours per Approx. Number of Approx. Total Annual Approx. Total Labor labor category* Respondent Respondents Hrs. Costs

$32.82 10 50,000 $1,641,000 professional/technical

TOTAL 300,000 $7,919,000 * Staff calculated labor costs by applying appropriate hourly cost figures to burden hours. The hourly rates used were based on mean wages for managerial/professional time (e.g., compliance evaluation and/or planning), professional/technical time (e.g., designing and producing notices, reviewing and updating information systems), and clerical time (e.g., reproduction tasks, filing, and, where applicable to the given event, typing or mailing). See BLS National Compensation Survey, June 2006, Table 1, available at http://www.bls.gov/ncs/ocs/sp/ncbl0910.pdf (Management, professional, and related; office and administrative support) and BLS Occupational Employment and Wages 2006,Table 2, available at http:// www.bls.gov/news.release/pdf/ocwage.pdf (professional, scientific, and technical services - business and financial operations). Labor cost totals reflect solely that of the commercial entities affected. Staff assumes that the time required of consumers to respond affirmatively to respondents’ opt-out programs (be it manually or electronically) would be minimal. ** Reviewing instructions includes all efforts performed by or for the respondent to: determine whether and to what extent the respondent is covered by an agency collection of information, understand the nature of the request, and determine the appropriate response (including the cre- ation and dissemination of document and/or electronic disclosures).

Burden hours and costs for established predictably would be less than for start- already been incurred. Staff’s best entities: up entities because start-up costs, such estimate of the average burden for these Burden for established entities as crafting a privacy policy, are entities is as follows: already familiar with the Rule generally one-time costs and have

Hours per Approx. Number of Approx. Total Annual Approx. Total Labor Event Hourly wage and labor category* Respondent Respondents** Hrs. Costs

Reviewing GLBA-im- $31.66 4 70,000 280,000 $8,864,800 plementing policies managerial/profes- and practices sional

Disseminating annual $14.71 15 70,000 1,050,000 $15,445,500 disclosure clerical

$32.82 5 350,000 $11,487,000 professional/technical

Changes to privacy $14.71 15 1,000 15,000 $220,650 policies and related clerical disclosures

$32.82 10 50,000 $164,100 professional/technical

Total 1,700,000 $36,182,050 * Staff calculated labor costs by applying appropriate hourly cost figures to burden hours; labor cost totals reflect solely that of the commercial entities affected. The hourly rates used were based on mean wages for managerial/professional time (e.g., compliance evaluation and/or planning), professional/technical time (e.g., designing and producing notices, reviewing and updating information systems), and clerical time (e.g., reproduction tasks, filing, and, where applicable to the given event, typing or mailing). See BLS National Compensation Survey, June 2006, Table 1, available at http://www.bls.gov/ncs/ocs/sp/ncbl0910.pdf (Management, professional, and related; office and administrative support) and BLS Occupational Employment and Wages 2006,Table 2, available at http://www.bls.gov/news.release/pdf/ocwage.pdf (professional, scientific, and technical services - business and financial operations). Consumers have a continuing right to opt-out, as well as a right to revoke their opt-out at any time. When a respondent changes its information sharing practices, consumers are again given the opportunity to opt-out. Again, staff assumes that the time required of consumers to respond affirmatively to respondents’ opt-out programs (be it manually or electronically) would be minimal. ** The estimate of respondents is based on the following assumptions: (1) 100,000 respondents, approximately 70% of whom maintain customer relationships exceeding one year, (2) no more than 1% (1,000) of whom make additional changes to privacy policies at any time other than the occasion of the annual notice; and (3) such changes will occur no more often than once per year.

As calculated above, the total annual Covered entities will already be will already be equipped with the PRA burden hours and labor costs for all equipped to provide written notices computer equipment and software affected entities in a given year would (e.g., computers with word processing necessary to disseminate the required be 2,000,000 hours and $44,101,000, programs, typewriters, copying disclosures via electronic means. respectively. machines, mailing capabilities). Most William Blumenthal Estimated Capital/Other Non-Labor likely, only entities that already have Costs Burden: Staff believes that capital on-line capabilities will offer consumers General Counsel or other non-labor costs associated with the choice to receive notices via [FR Doc. E8–6821 Filed 4–1–08: 8:45 am] the document requests are minimal. electronic format. As such, these entities BILLING CODE 6750–01–S]

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