[Federal Register Volume 60, Number 184 (Friday, September 22, 1995)]
[Rules and Regulations]
[Pages 49198-49199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23391]
=======================================================================
-----------------------------------------------------------------------
FEDERAL HOUSING FINANCE BOARD
12 CFR Parts 900 and 922
[No. 95-23]
Revision of Board of Directors Reporting Requirements
AGENCY: Federal Housing Finance Board.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Housing Finance Board is amending its regulation
on Board of Directors Responsibilities and Conduct to eliminate the
required submission of Form FB-1, the Personal Certification and
Disclosure Form, and the certification and disclosure requirements
applicable to the four Federal Housing Finance Board Directors
appointed by the President upon appointment and annually thereafter, in
order to avoid duplicative and burdensome reporting requirements.
EFFECTIVE DATE: This final rule is effective on September 22, 1995.
FOR FURTHER INFORMATION CONTACT: David A. Guy, Associate General
Counsel, Office of General Counsel, (202) 408-2536, Federal Housing
Finance Board, 1777 F Street, N.W., Washington, D.C. 20006.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
As a result of an ongoing internal review of its regulations, the
Federal Housing Finance Board (Board) has identified the certification
and disclosure requirements applicable to the four Board Directors
appointed by the President, by and with the advice of the Senate
(appointed Board Directors), see 12 U.S.C. 1422a(b)(1)(B), upon
appointment and annually thereafter, see 12 CFR 922.6(a), (c), and the
use of Form FB-1, see id. Secs. 922.7, 900.51, as unnecessarily
burdensome and duplicative. Accordingly, the Board intends to eliminate
Form FB-1 and the certification and disclosure requirements.
Currently, under Sec. 922.6 of the Board's regulations, each
appointed Board Director, upon appointment and annually thereafter,
must certify in writing to the Board's designated agency ethics
official (DAEO) on Form FB-1, that he or she meets all of the
requirements for appointment mandated by the Federal Home Loan Bank Act
(Bank Act) and part 922, and, further, must disclose in writing to the
DAEO on Form FB-1, certain financial relationships with any member of
any Federal Home Loan Bank (FHLBank). See id. Sec. 922.6(a), (c).
Both the Bank Act and part 922 of the Board's regulations require
that appointed Board Directors be citizens of the United States, see 12
U.S.C. 1422a(b)(1)(B), 12 CFR 922.2(a), and prohibit appointed Board
Directors from serving as a director or officer of any FHLBank or any
member of any FHLBank, or holding shares of, or any other financial
interest in, any member of any FHLBank. See 12 U.S.C. 1422a(b)(2)(C),
12 CFR 922.3. In addition to the duty of an appointed Board Director to
comply with the law, Part 922 imposes on each appointed Board Director
an affirmative obligation to obey the regulations and policies
established by the Board. See 12 CFR 922.2(b). The additional
requirement that appointed Board Directors certify their compliance
with the mandatory conditions for appointment is unnecessarily
burdensome.
The financial disclosures required of appointed Board Directors
under part 922 also are unnecessarily burdensome and duplicative. Under
the Ethics in Government Act of 1978, as amended, 5 U.S.C. App. 101, et
seq., and the implementing regulations promulgated by the Office of
Government Ethics (OGE), 5 CFR Part 2634, appointed Board Directors
already are required to disclose, as a part of the Senate confirmation
process and annually thereafter in writing to the DAEO and the OGE,
detailed information regarding their financial interests, including the
information required to be reported to the DAEO on Form FB-1. See 5
U.S.C. App. 101(c), 5 CFR 2634.201, 2634.202. In fact, the financial
disclosures required by the OGE are more exacting than the financial
disclosures required under part 922.
Part 922 also requires that, if an appointed Board Director knows
or suspects at any time that he or she does not meet any of the
statutory or regulatory requirements for appointment, he or she must
report the specific factual basis for noncompliance to the DAEO in
writing on Form FB-1 within 30 days of the date noncompliance did or
may have occurred. See 12 CFR 922.6(b). Because contemporaneous
disclosure of known or suspected noncompliance is not otherwise
required, the Board will retain this written disclosure requirement,
although it will no longer require that appointed Board Directors
report the noncompliance on Form FB-1. Further, the phrase ``suspected
noncompliance'' is being substituted for the phrase ``should have known
of the noncompliance'' in 12 CFR 922.6(b) because it forms a more
reasonable basis for a report of this kind.
II. Analysis of the Final Rule
Since the certification and disclosure requirements applicable to
appointed Board Directors upon appointment and annually thereafter, and
the use of Form FB-1 currently required by Sec. 922.6(a) and (c), and
Sec. 922.7 of the Board's regulations, are unnecessarily burdensome and
duplicative for the reasons stated in part I of the Supplementary
Information, repeal of these sections is appropriate.
[[Page 49199]]
Repeal of these provisions of parts 900 and 922 also will be
consistent with the goal of the Vice President's National Performance
Review to reduce the total number of regulations of executive agencies.
See Report of the National Performance Review 32-33 (Sept. 17, 1993);
E.O. 12861, 58 FR 48255 (Sept. 11, 1993).
For the foregoing reasons, the Board has decided to repeal
Sec. 922.6(a) and (c) and Sec. 922.7, and to amend Sec. 922.6(b) and
Sec. 900.51 of its regulations, pursuant to its general rulemaking
authority under section 2B(a)(1) of the Bank Act. See 12 U.S.C.
1422b(a)(1).
III. Notice and Public Participation
Publication of notice of proposed rulemaking is not required by the
Administrative Procedure Act (APA), 5 U.S.C. 551 et seq., because the
Board, for good cause, finds that the notice and comment procedure is
unnecessary and contrary to the public interest in this instance. See
id. Sec. 553(b)(3)(B). Compliance with the public notice and comment
procedure requirement of APA section 553 is unnecessary because the
final rule makes only minor changes to the disclosure requirements
imposed on appointed Board Directors, repeals provisions of the Board's
regulations that have no effect on the public, and eliminates
unnecessarily burdensome and duplicative regulations.
IV. Effective Date
For the reasons stated in part III of the Supplementary
Information, the Board finds that, under APA section 553(d)(3), there
is good cause for the final rule to become effective upon publication.
V. Regulatory Flexibility Act
The Board is adopting the changes to parts 900 and 922 in the form
of a final rule and not as a proposed rule. Therefore, the provisions
of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., do not apply.
See id. Secs. 601(2), 603(a).
List of Subjects
12 CFR Part 900
Organizations and functions (Government agencies).
12 CFR Part 922
Conflict of interests.
Accordingly, Chapter IX, Title 12, parts 900 and 922, Code of
Federal Regulations, are hereby amended as follows:
PART 900--DESCRIPTION OF ORGANIZATION AND FUNCTIONS
1. The authority citation for part 900 is revised to read as
follows:
Authority: 5 U.S.C. 552; 12 U.S.C. 1422b(a).
2. Section 900.51 is revised to read as follows:
Sec. 900.51 Forms.
The following forms are available at the Finance Board headquarters
facility (see Sec. 900.3) and shall be used for the purpose indicated:
Form
10-91--Monthly Survey of Rates and Terms on Conventional 1 Family
Nonfarm Mortgage Loans.
9102--Certificate of Nomination, Election of Federal Home Loan Bank
Directors.
9103--Election Ballot, Election of Federal Home Loan Bank Directors.
A-1--Appointive Director Candidates--Personal Certification and
Disclosure Form.
A-2--Appointive Directors--Personal Certification and Disclosure
Form.
E-1--Elective Director Nominees--Personal Certification and
Disclosure Form.
E-2--Elective Directors--Personal Certification and Disclosure Form.
90-T04--Local Travel Claim.-
PART 922--BOARD OF DIRECTORS AND EMPLOYEES RESPONSIBILITIES AND
CONDUCT
1. The authority citation for part 922 continues to read as
follows:
Authority: 12 U.S.C. 1422a, 1422b.
2. Section 922.6 is revised to read as follows:
Sec. 922.6 Duty to report.
If an appointed Board director knows or suspects at any time that
he or she does not meet any of the requirements for appointment set
forth in sections 2A(b)(1)(B) and 2A(b)(2)(C) of the Act or this part,
the appointed Board director shall report the specific factual basis
for the known or suspected noncompliance in writing to the Board's
designated agency ethics official within 30 days of the date
noncompliance did or may have occurred.
Sec. 922.7 [Removed]
3. Section 922.7 is removed.
Dated: September 14, 1995.
By the Federal Housing Finance Board.
Bruce A. Morrison,
Chairman.
[FR Doc. 95-23391 Filed 9-21-95; 8:45 am]
BILLING CODE 6725-01-U
