[Federal Register Volume 64, Number 248 (Tuesday, December 28, 1999)]
[Rules and Regulations]
[Pages 72494-72501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33476]


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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL

12 CFR Part 1102
[Docket No. AS99-1]


Appraisal Subcommittee; Appraiser Regulation; Disclosure of 
Information

AGENCY: Appraisal Subcommittee, Federal Financial Institutions 
Examination Council (``ASC'').

ACTION: Final rules.

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SUMMARY: The ASC is adopting amendments to its regulations governing 
the public disclosure of information to reflect changes to the Freedom 
of Information Act (``FOIA'') as a result of the enactment of the 
Electronic Freedom of Information Act Amendments of 1996 (``E-FOIA''). 
among other things, the new rules implement expedited FOIA processing 
procedures; implement processing deadlines and appeal rights created by 
E-FOIA; and describe the expanded range of records available to the 
public through the ASC's Internet World Wide Web site (http://
www.asc.gov).

EFFECTIVE DATE: January 12, 2000.

FOR FURTHER INFORMATION CONTACT: Marc L. Weinberg, General Counsel, at 
(202) 872-7520 or [email protected]; Appraisal Subcommittee; 2000 K 
street, NW, Suite 310; Washington, DC 20006.

SUPPLEMENTARY INFORMATION:

I. Authority and Section-by-Section Analysis

    E-FOIA, Public Law 104-231, amended the Freedom of Information Act 
(``FOIA''), 5 U.S.C. 552. Among other things, E-FOIA requires agencies 
to promulgate regulations that provide for expedited processing of 
certain requests for records. On October 22, 1999, the ASC proposed for 
comment these amendments to its related regulations in 12 CFR part 
1102, subpart D (1999) (``subpart'') to implement E-FOIA. In addition, 
the ASC proposed changes to the subpart on fees and fee waivers, and 
portions of this subpart have been reorganized. These proposals were 
published for comment on November 1, 1999, at 64 FR 58800. No comments 
were received, and the ASC is adopting the proposed amendments as 
published, with the exception of a few minor stylistic and non-
substantive changes.
    Section 1102.300 has been expanded to clarify the purpose and scope 
of the various sections found within the subpart. Section 1102.301 has 
been amended to incorporate several E-FOIA definitions. Section 
1102.302 remains unchanged. Section 1102.303 has been updated to 
reflect changes in the ASC's office address and staff organization. 
Current Sec. 1102.304, which incorporated by reference the FOIA 
regulations of the Federal Financial Institutions Examination Council 
(``FFIEC''), has been deleted. New Sec. 1102.304 specifies records that 
must be published in the Federal Register under FOIA. Section 1102.305 
identifies the ASC's Internet World Wide Web site as the primary source 
of ASC information and describes the information that is made available 
over the Internet as required by E-FOIA. The section also sets out the 
categories of information that are publicly available upon request. The 
ASC notes that the records provided over the Internet cover a much 
smaller scope than those available by request. E-FOIA only requires the 
ASC to place on the Internet records created after November 1, 1996. 
The ASC, however, is increasing the resources available over the 
Internet on its World Wide Web site.
    Section 1102.306 describes the ASC's procedures for processing FOIA 
requests. This section essentially is new because it no longer 
incorporates by reference the FFIEC's FOIA rules. It also reflects the 
changes required by E-FOIA. Because of the small size of the ASC and 
the dearth of FOIA requests received, the ASC has determined not to 
provide multitrack processing. The amendments, however, would provide 
expedited processing where a requester has demonstrated a compelling 
need for the records, or where the ASC has determined to expedite the 
response. The time limit for expedited processing is set at ten 
business days, with expedited procedures available for an appeal of the 
ASC's determination not to provide expedited processing. Under E-FOIA, 
there are only two types of circumstances that can meet the compelling 
need standard: Where failure to obtain the records

[[Page 72495]]

expeditiously could pose an imminent threat to the life or physical 
safety of a person, or where the requester is a person primarily 
engaged in disseminating information and there is an urgency to inform 
the public concerning actual or alleged agency activity. For ease of 
administration and consistency, the amendments use the term 
``representative of the news media'' to describe a person primarily 
engaged in disseminating information. To demonstrate a compelling need, 
a requester must submit a certified statement, a sample of which may be 
obtained from the ASC.
    All information requests that do not meet expedited processing 
standards will be handled under regular processing procedures, as 
required by FOIA and E-FOIA. The statutory time limit for regular-track 
processing would be extended to twenty business days, pursuant to E-
FOIA, from the previous ten business days.
    Section 1102.306(e) contains the FOIA fees and the standards for 
waiver of fees. The fee provisions have been revised to clarify that 
the processing time of a FOIA request does not begin until: (1) Payment 
is received when payment in advance is required, or (2) a person has 
requested a fee waiver and has not agreed to pay the fees if the waiver 
request is denied.
    New Sec. 1102.307 covers the disclosure of exempt records. The 
section prohibits the disclosure of exempt records, and, at the same 
time, authorizes the ASC, through its Chairman or Executive Director, 
to release certain types of otherwise exempt records upon receipt of a 
written request specifically identifying the subject records and 
providing sufficient information for the ASC to evaluate whether good 
cause for disclosure exists.
    The next two sections, 1102.308 and 1102.309, carry over unchanged 
current 1102.30 and 1102.306, respectively.
    The final section, 1102.310, is new. The section describes the 
procedures for serving subpoenas or other legal process on the ASC.
    The ASC notes that the substantive portions of these amendments are 
based on 12 CFR part 309, the Federal Deposit Insurance Corporation's 
regulations concerning the disclosure of information.

II. Administrative Requirements

A. Paperwork Reduction Act

    The information collection requirements regarding this collection 
of information were submitted to, and approved by, the Office of 
Management and Budget (OMB). A copy of this Information Collection 
Request document (OMB control number 3139-0006) may be obtained from 
Marc L. Weinberg, General Counsel; Appraisal Subcommittee; 2000 K 
Street, NW, Suite 310; Washington, DC 20006, or by calling (202) 872-
7520. Today's action has no impact on the information collection burden 
estimates made previously. This change does not impose new 
requirements. In fact, by implementing E-FOIA, this change reduces 
existing burdens.

B. Executive Order 12866

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), the ASC 
must determine whether the regulatory action is ``significant'' and 
therefore subject to review by OMB on the basis of the requirements of 
the Executive Order in addition to its normal review requirements. The 
Executive Order defines ``significant regulatory action'' as one that 
is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or Tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs, or the rights and obligations of 
recipients thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    Today's action does not fall within any of the four categories 
described above. Instead, it reduces the burden on information 
requestors implementing E-FOIA's broad electronic disclosure 
provisions. Consequently, under Executive Order 12866, this action is 
not a ``significant regulatory action'' and is therefore not subject to 
review by OMB.

C. Executive Order 13132

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires the ASC to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the states, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.'' Under 
Executive Order 13132, the ASC may not issue a regulation that has 
federalism implications, that imposes substantial direct compliance 
costs, and that is not required by statute, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by State and local governments, or the ASC consults with 
State and local officials early in the process of developing the 
proposed regulation. The ASC also may not issue a regulation that has 
federalism implications and that preempts State law unless the ASC 
consults with State and local officials early in the process of 
developing the proposed regulation.
    If the ASC complies by consulting, Executive Order 13132 requires 
the ASC to provide to OMB, in a separately identified section of the 
preamble to the rule, a federalism summary impact statement (``FSIS''). 
The FSIS must include a description of the extent of ASC's prior 
consultation with State and local officials, a summary of the nature of 
their concerns and the Agency's position supporting the need to issue 
the regulation, and a statement of the extent to which the concerns of 
State and local officials have been met. Also, when ASC transmits a 
draft final rule with federalism implications to OMB for review 
pursuant to Executive Order 12866, the ASC must include a certification 
from the agency's Federalism Official stating that ASC has met the 
requirements of Executive Order 13132 in a meaningful and timely 
manner.
    This final rule will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, as specified in Executive Order 13132. 
Today's action has minimal, if any, impacts associated with this 
action; thus, the requirements of Sec. 6 of the Executive Order do not 
apply to this rule.

D. Regulatory Flexibility/Small Business Regulatory Enforcement 
Fairness Act of 1996

    Under the Regulatory Flexibility Act, Pub. L. 96-354, whenever a 
Federal agency publishes any proposed or final rule in the Federal 
Register, it must, except under certain circumstances, prepare a 
Regulatory Flexibility Analysis (``REA'') that describes the impact of 
the rule on small entities (i.e., small businesses, organizations, and

[[Page 72496]]

governmental jurisdictions). That analysis is not necessary if the 
agency determines that the rule will not have a significant economic 
impact on a substantial number of small entities.
    The ASC believes that promulgation of this rule, rather than 
imposing additional requirements, reduces previous requirements because 
it implements E-FOIA's broad public disclosure provisions. Because the 
impacts are anticipated to be insignificant or beneficial, ASC has 
concluded that this rule will not have a significant economic impact on 
a substantial number of small entities. Consequently, an RFA is not 
required.

E. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (``UMRA''), 
Public Law 104-4, establishes requirements for Federal agencies to 
assess the effects of their regulatory actions on State, local, and 
tribal governments and the private sector. Under Sec. 202 of the UMRA, 
ASC generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures to State, local, and tribal 
governments, in the aggregate, or to the private sector of $100 million 
or more in any one year. Today's rule contains no Federal mandates 
(under the regulatory provisions of Title II of the UMRA) for State, 
local, or tribal governments or the private sector. Instead, this rule 
relieves previous burdens by implementing E-FOIA. Because the rule is 
not expected to result in the expenditure by State, local, and tribal 
governments or the private sector of $100 million or more in any one 
year, the ASC has not prepared a budgetary impact statement or 
specifically addressed the selection of the least costly, most 
effective, or least burdensome alternative. Because small governments 
will not be significantly or uniquely affected by this rule, the ASC is 
not required to develop a plan with regard to small governments. For 
the reasons stated above, the requirements of the UMRA do not apply to 
this section.

List of Subjects in 12 CFR Part 1102

    Administrative practice and procedure, Appraisers, Banks, banking, 
Freedom of Information, Mortgages, Reporting and recordkeeping 
requirements.

Text of the Rule

    For the reasons set forth in the preamble, title 12, chapter XI, of 
the Code of Federal Regulations is amended as follows:

PART 1102--APPRAISER REGULATION

Subpart D--Description of Office, Procedures, Public Information

    1. The authority citation for part 1102, subpart D continues to 
read as follows:

    Authority: 5 U.S.C. 552, 553(e); and Executive Order 12600, 52 
FR 23781 (3 CFR, 1987 Comp., p 235).

    2. Section 1102.300 is revised to read as follows:


Sec. 1102.300  Purpose and scope.

    This part sets forth the basic policies of the Appraisal 
Subcommittee of the Federal Financial Institutions Examination Council 
(``ASC'') regarding information it maintains and the procedures for 
obtaining access to such information. This part does not apply to the 
Federal Financial Institutions Examination Council. Section 1102.301 
sets forth definitions applicable to this part 1102, subpart D. Section 
1102.302 describes the ASC's statutory authority and functions. Section 
1102.303 describes the ASC's organization and methods of operation. 
Section 1102.304 describes the types of information and documents 
typically published in the Federal Register. Section 1102.305 explains 
how to access public records maintained on the ASC's World Wide Web 
site and at the ASC's office and describes the categories of records 
generally found there. Section 1102.306 implements the Freedom of 
Information Act (``FOIA'') (5 U.S.C. 552). Section 1102.307 authorizes 
the discretionary disclosure of exempt records under certain limited 
circumstances. Section 1102.308 provides anyone with the right to 
petition the ASC to issue, amend, and repeal rules of general 
application. Section 1102.309 sets out the ASC's confidential treatment 
procedures. Section 1102.310 outlines procedures for serving a subpoena 
or other legal process to obtain information maintained by the ASC.
    3. Section 1102.301 is revised to read as follows:


Sec. 1102.301  Definitions.

    For purposes of this subpart:
    (a) ASC means the Appraisal Subcommittee of the Federal Financial 
Institutions Examination Council.
    (b) Commercial use request means a request from, or on behalf of, a 
requester who seeks records for a use or purpose that furthers the 
commercial, trade, or profit interests of the requester or the person 
on whose behalf the request is made. In determining whether a request 
falls within this category, the ASC will determine the use to which a 
requester will put the records requested and seek additional 
information as it deems necessary.
    (c) Direct costs means those expenditures the ASC actually incurs 
in searching for, duplicating, and, in the case of commercial 
requesters, reviewing records in response to a request for records.
    (d) Disclose or disclosure mean to give access to a record, whether 
by producing the written record or by oral discussion of its contents. 
Where the ASC member or employee authorized to release ASC documents 
makes a determination that furnishing copies of the documents is 
necessary, these words include the furnishing of copies of documents or 
records.
    (e) Duplication means the process of making a copy of a record 
necessary to respond to a request for records or for inspection of 
original records that contain exempt material or that cannot otherwise 
be directly inspected. Such copies can take the form of paper copy, 
microfilm, audiovisual records, or machine readable records (e.g., 
magnetic tape or computer disk).
    (f) Educational institution means a preschool, a public or private 
elementary or secondary school, an institution of undergraduate or 
graduate higher education, an institution of professional education, 
and an institution of vocational education, which operates a program or 
programs of scholarly research.
    (g) Field review includes, but is not limited to, formal and 
informal investigations of potential irregularities occurring at State 
appraiser regulatory agencies involving suspected violations of Federal 
or State civil or criminal laws, as well as such other investigations 
as may conducted pursuant to law.
    (h) Non-commercial scientific institution means an institution that 
is not operated on a commercial basis as that term is defined in 
paragraph (b) of this section, and which is operated solely for the 
purpose of conducting scientific research, the results of which are not 
intended to promote any particular product or industry.
    (i) Record includes records, files, documents, reports 
correspondence, books, and accounts, or any portion thereof, in any 
form the ASC regularly maintains them.
    (j) Representative of the news media means any person primarily 
engaged in gathering news for, or a free-lance journalist who can 
demonstrate a reasonable expectation of having his or her work product 
published or broadcast by, an entity that is organized and operated to 
publish or broadcast

[[Page 72497]]

news to the public. The term news means information that is about 
current events or that would be of current interest to the general 
public.
    (k) Review means the process of examining documents located in a 
response to a request that is for a commercial use to determine whether 
any portion of any document located is permitted to be withheld. It 
also includes processing any documents for disclosure, e.g, doing all 
that is necessary to excise them and otherwise prepare them for 
release. Review does not include time spent resolving general legal or 
policy issues regarding the application of exemptions.
    (l) Search includes all time spent looking for material that is 
responsive to a request, including page-by-page or line-by-line 
identification of material within records. Searches may be done 
manually and/or by computer using existing programming.
    (m) State appraiser regulatory agency includes, but is not limited 
to, any board, commission, individual or other entity that is 
authorized by State law to license, certify, and supervise the 
activities or persons authorized to perform appraisals in connections 
with federally related transactions and real estate related financial 
transactions that require the services of a State licensed or certified 
appraiser.
    4. Section 1102.303 is amended by revising paragraphs (b) and (d) 
to read as follows:


Sec. 1102.303  Organization and methods of operation.

    (a) * * *
    (b) ASC members and staff. The ASC is composed of six members, each 
being designated by the head of their respective agencies: the Board of 
Governors of the Federal Reserve System, Federal Deposit Insurance 
Corporation, Office of the Comptroller of the Currency, National Credit 
Union Administration, Office of Thrift Supervision, and the Department 
of Housing and Urban Development. Administrative support and 
substantive program, policy, and legal guidance for ASC activities are 
provided by a small, full-time, professional staff supervised by an 
Executive Director.
    (c) * * *
    (d) ASD Address ASC offices are located at 2000 K Street, NW, Suite 
310; Washington, DC 20006.
    5. Section 1102.304 is revised to read as follows:


Sec. 1102.304  Federal Register publication.

    The ASC publishes the following information in the Federal Register 
for the guidance of the public:
    (a) Description of its organization and the established places at 
which, the officers from whom, and the methods whereby, the public may 
secure information, make submittals or re nests, or obtain decisions;
    (b) Statements of the general course and method by which its 
functions are channeled and determined, including the nature and 
requirements of all formal and informal procedures available;
    (c) Rules of procedure, descriptions of forms available or the 
places at which forms may be obtained, and instructions as to the scope 
and contents of all papers, reports or examinations;
    (d) Substantive rules of general applicability adopted as 
authorized by law, and statements of general policy or interpretations 
of general applicability formulated and adopted by the ASC;
    (e) Every amendment, revision or repeal of the foregoing; and
    (f) General notices of proposed rulemaking.
    6. Section 1102.305 is amended by revising the the section heading 
and paragraphs (a) and (c) to read as follows:


Sec. 1102.305  Publicly available records.

    (a) Records available on the ASCs World Wide Web site--(1) 
Discretionary release of documents. The ASC encourages the public to 
explore the wealth of resources available on the ASC's Internet World 
Wide Web site, located at: http://www.asc.gov. The ASC has elected to 
publish a broad range to materials on its Web site.
    (2) Documents required to be made available via computer 
telecommunications. (i) The following types of documents created on or 
after November 1, 1996, and required to be made available through 
computer telecommunications, may be found on the ASC's Internet World 
Wide Web site located at: http://www.asc.gov:
    (A) Final opinions, including concurring and dissenting opinions, 
as well as final orders, made in the adjudication of cases;
    (B) Statements of policy and interpretations adopted by the ASC 
that are not published in the Federal Register;
    (C) Administrative staff manuals and instructions to staff that 
affect a member of the public;
    (D) Copies of all records (regardless of form or format), such as 
correspondence relating to field reviews or other regulatory subjects, 
released to any person under Sec. 1102.306 that, because of the nature 
of their subject matter, the ASC has determined are likely to be the 
subject of subsequent requests;
    (E) A general index of the records referred to in paragraph 
(a)(2)(i)(D) of this section.
    (ii) To the extent permitted by law, the ASC may delete identifying 
details when it makes available or publishes any records. If reduction 
is necessary, the ASC will, to the extent technically feasible, 
indicate the amount of material deleted at the place in the record 
where such deletion is made unless that indication in and of itself 
will jeopardize the purpose for the redaction.
* * * * *
    (c) Applicable fees. (1) If applicable, fees for furnishing records 
under this section are as set forth in Sec. 1102.306(e).
    (2) Information on the ASC's World Wide Web site is available to 
the public without charge. If, however, information available on the 
ASC's World Wide Web site is provided pursuant to a Freedom of 
Information Act request processed under g 1102.306 then fees apply and 
will be assessed pursuant to Sec. 1102.306(e).


Secs. 1102.306 and 1102.307  [Redesignated as Secs. 1102.309 and 
1102.308]

    7. Sections 1102.306 and 1102.307 are redesignated as 
Secs. 1102.309 and 1102.308 respectively.
    8. A new Sec. 1102.306 is added to read as follows:


Sec. 1102.306  Procedures for requesting records.

    (a) Making a request for records. (1) The request shall be 
submitted in writing to the Executive Director:
    (i) By facsimile clearly marked ``Freedom of Information Act 
Request'' to (202) 872-7501;
    (ii) By letter to the Executive Director marked ``Freedom of 
Information Act Request''; 2000 K Street, NW, Suite 301; Washington, DC 
20006; or
    (iii) By sending Internet e-mail to the Executive Director marked 
``Freedom of Information Act Request'' at his or her e-mail address 
listed on the ASC's World Wide Web site.
    (2) The request shall contain the following information:
    (i) The name and address of the requester, an electronic mail 
address, if available, and the telephone number at which the requester 
may be reached during normal business hours;
    (ii) Whether the requester is an educational institution, non-
commercial scientific institution, or news media representative;
    (iii) A statement agreeing to pay the applicable fees, or a 
statement identifying a maximum fee that is acceptable to the 
requester, or a request for a waiver or reduction of fees that 
satisfies paragraph (e)(1)(x) of this section; and

[[Page 72498]]

    (ii) The preferred form and format of any responsive information 
requested, if other than paper copies.
    (3) A request for identifiable records shall reasonably describe 
the records in a way that enables the ASC's staff to identify and 
produce the records with reasonable effort and without unduly burdening 
or significantly interfering with any ASC operations.
    (b) Defective requests. The ASC need not accept or process a 
request that does not reasonably describe the records requested or that 
does not otherwise comply with the requirements of this subpart. The 
ASC may return a defective request, specifying the deficiency. The 
requester may submit a corrected request, which will be treated as a 
new request.
    (c) Processing requests. (1) Receipt of requests. Upon receipt of 
any request that satisfies paragraph (a) of this section, the Executive 
Director shall assign the request to the appropriate processing track 
pursuant to this section. The date of receipt for any request, 
including one that is addressed incorrectly or that is referred by 
another agency, is the date the Executive Director actually receives 
the request.
    (2) Expedited processing. (i) Where a person requesting expedited 
access to records has demonstrated a compelling need for the records, 
or where the ASC has determined to expedite the response, the ASC shall 
process the request as soon as practicable. To show a compelling need 
for expedited processing, the requester shall provide a statement 
demonstrating that:
    (A) The failure to obtain the records on an expedited basis could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual; or
    (B) The requester can establish that it is primarily engaged in 
information dissemination as its main professional occupation or 
activity, and there is urgency to inform the public of the government 
activity involved in the re request; and
    (C) The requester's statement must be certified to be true and 
correct to the best of the person's knowledge and belief and explain in 
detail the basis for requesting expedited processing.
    (ii) The formality of the certification required to obtain 
expedited treatment may be waived by the Executive Director as a matter 
of administrative discretion.
    (3) A requester seeking expedited processing will be notified 
whether expedited processing has been granted within ten (10) working 
days of the receipt of the request. If the request for expedited 
processing is denied, the requester may file an appeal pursuant to the 
procedures set forth in paragraph (g) of this section, and the ASC 
shall respond to the appeal within ten (10) working days after receipt 
of the appeal.
    (4) Priority of responses. Consistent with sound administrative 
process, the ASC processes requests in the order they are received. 
However, in the ASC's discretion, or upon a court order in a matter to 
which the ASC is a party, a particular request may be processed out of 
turn.
    (5) Notification. (i) The time for response to requests will be 
twenty (20) working days except:
    (A) In the case of expedited treatment under paragraph (c)(2) of 
this section;
    (B) Where the running of such time is suspended for the calculation 
of a cost estimate for the requester if the ASC determines that the 
processing of the request may exceed the requester's maximum fee 
provision or if the charges are likely to exceed $250 as provided for 
in paragraph (e)(1)(iv) of this section;
    (C) Where the running of such time is suspended for the payment of 
fees pursuant to the paragraph (c)(5)(i)(B) and (e)(1) of this section; 
or
    (D) In unusual circumstances, as defined in 5 U.S.C. 552(a)(6)(B) 
and further described in paragraph (c)(5)(iii) of this section.
    (ii) In unusual circumstances as referred to in paragraph 
(c)(5)(i)(D) of this section, the time limit may be extended for a 
period of:
    (A) Ten (10) working days as provided by written notice to the 
requester, setting forth the reasons for the extension and the date on 
which a determination is expected to be dispatched; or
    (B) Such alternative time period as agreed to by the requester or 
as reasonably determined by the ASC when the ASC notifies the requester 
that the request cannot be processed in the specified time limit.
    (iii) Unusual circumstances may arise when:
    (A) The records are in facilities that are not located at the ASC's 
Washington office;
    (B) The records requested are voluminous or are not in close 
proximity to one another; or
    (C) There is a need to consult with another agency or among two or 
more components of the ASC having a substantial interest in the 
determination.
    (6) Response to request. In response to a request that satisfies 
the requirements of paragraph (a) of this section, a search shall be 
conducted of records maintained by the ASC in existence on the date of 
receipt of the request, and a review made of any responsive information 
located. To the extent permitted by law, the ASC may redact identifying 
details when it makes available or publishes any records. If redaction 
is appropriate, the ASC will, to the extent technically feasible, 
indicate the amount of material deleted at the place in the record 
where such deletion is made unless that indication in and of itself 
will jeopardize the purpose for the redaction. The ASC shall notify the 
requester of:
    (i) The ASC's determination of the request;
    (ii) The reasons for the determination;
    (iii) If the response is a denial of an initial request or if any 
information is withheld, the ASC will advise the requester in writing:
    (A) If the denial is in part or in whole;
    (B) The name and title of each person responsible for the denial 
(when other than the person signing the notification);
    (C) The exemptions relied on for the denial; and
    (D) The right of the requester to appeal the denial to the Chairman 
of the ASC within 30 business days following receipt of the 
notification, as specified in paragraph (h) of this section.
    (d) Providing responsive records. (1) Copies of requested records 
shall be sent to the requester by regular U.S. mail to the address 
indicated in the request, unless the requester elects to take delivery 
of the documents at the ASC or makes other acceptable arrangements, or 
the ASC deems it appropriate to send the documents by another means.
    (2) The ASC shall provide a copy of the record in any form or 
format requested if the record is readily reproducible by the ASC in 
that form or format, but the ASC need not provide more than one copy of 
any record to a requester.
    (3) By arrangement with the requester, the ASC may elect to send 
the responsive records electronically if a substantial portion of the 
request is in electronic format. If the information requested is made 
pursuant to the Privacy Act of 1974, 5 U.S.C. 552a, it will not be sent 
by electronic means unless reasonable security measures can be 
provided.
    (e) Fees (1) General rules. (i) Persons requesting records of the 
ASC shall be charged for the direct costs of search, duplication, and 
review as set forth in paragraphs (e)(2) and (e)(3) of this section, 
unless such costs are less than the ASC's cost of processing the 
requester's remittance.
    (ii) Requesters will be charged for search and review costs even if 
responsive records are not located or, if

[[Page 72499]]

located, are determined to be exempt from disclosure.
    (iii) Multiple requests seeking similar or related records from the 
same requester or group of requesters will be aggregated for the 
purposes of this section.
    (iv) If the ASC determines that the estimated costs of search, 
duplication, or review of requested records will exceed the dollar 
amount specified in the request, or if no dollar amount is specified, 
the ASC will advise the requester of the estimated costs. The requester 
must agree in writing to pay the costs of search, duplication, and 
review prior to the ASC initiating any records search.
    (v) If the ASC estimates that its search, duplication, and review 
costs will exceed $250, the requester must pay an amount equal to 20 
percent of the estimated costs prior to the ASC initiating any records 
search.
    (vi) The ASC ordinarily will collect all applicable fees under the 
final invoice before releasing copies of requested records to the 
requester.
    (vii) The ASC may require any requester who has previously failed 
to pay charges under this section within 30 calendar days of mailing of 
the invoice to pay in advance the total estimated costs of search, 
duplication, and review. The ASC also may require a requester who has 
any charges outstanding in excess of 30 calendar days following mailing 
of the invoice to pay the full amount due, or demonstrate that the fee 
has been paid in full, prior to the ASC initiating any additional 
records search.
    (viii) The ASC may begin assessing interest charges on unpaid bills 
on the 31st day following the day on which the invoice was sent. 
Interest will be at the rate prescribed in Sec. 3717 of title 31 of the 
United States Code and will accrue from the date of the invoice.
    (ix) The time limit for the ASC to respond to a request will not 
begin to run until the ASC has received the requester's written 
agreement under paragraph (e)(1)(iv) of this section, and advance 
payment under paragraph (e)(1)(v) or (vii) of this section, or payment 
of outstanding charges under paragraph (e)(1)(vii) or (viii) of this 
section.
    (x) As part of the initial request, a requester may ask that the 
ASC waive or reduce fees if disclosure of the records is in the public 
interest because it is likely to contribute significantly to public 
understanding of the operations or activities of the government and is 
not primarily in the commercial interest of the requester. 
Determinations as to a waiver or reduction of fees will be made by the 
Executive Director (or designee), and the requester will be notified in 
writing of his or her determination. A determination not to grant a 
request for a waiver or reduction of fees under this paragraph may be 
appealed to the ASC's Chairman pursuant to the procedure set forth in 
paragraph (g) of this section.
    (2) Chargeable fees by category of requester. (i) Commercial use 
requesters shall be charged search, duplication, and review costs.
    (ii) Educational institutions, noncommercial scientific 
institutions, and news media representatives shall be charged 
duplication costs, except for the first 100 pages.
    (iii) Requesters not described in paragraph (e)(2)(i) or (ii) of 
this section shall be charged the full reasonable direct cost of search 
and duplication, except for the first two hours of search time and 
first 100 pages of duplication.
    (3) Fee schedule. The dollar amount of fees which the ASC may 
charge to records requesters will be established by the Executive 
Director. The ASC may charge fees that recoup the full allowable direct 
costs it incurs. Fees are subject to change as costs change. The fee 
schedule will be published periodically on the ASC's Internet World 
Wide Web site (http://www.asc.gov) and will be effective on the date of 
publication. Copies of the fee schedule may be obtained by request at 
no charge by contacting the Executive Director by letter, Internet 
email or facsimile.
    (i) Manual searches for records. The ASC will charge for manual 
searches for records at the basic rate of pay of the employee making 
the search plus 16 percent to cover employee benefit costs.
    (ii) Computer searches for records. The fee for searches of 
computerized records is the actual direct cost of the search, including 
computer time, computer runs, and the operator's time apportioned to 
the search multiplied by the operator's basic rate of pay plus 16 
percent to cover employee benefit costs.
    (iii) Duplication of records. (A) The per-page fee for paper copy 
reproduction of documents is $.25.
    (B) For other methods of reproduction or duplication, the ASC will 
charge the actual direct costs of reproducing or duplicating the 
documents, including each involved employee's basic rate of pay plus 16 
percent to cover employee benefit costs.
    (iv) Review of records. The ASC will charge commercial use 
requesters for the review of records at the time of processing the 
initial request to determine whether they are exempt from mandatory 
disclosure at the basic rate of pay of the employee making the search 
plus 16 percent to cover employee benefit costs. The ASC will not 
charge at the administrative appeal level for review of an exemption 
already applied. When records or portions of records are withheld in 
full under an exemption which is subsequently determined not to apply, 
the ASC may charge for a subsequent review to determine the 
applicability of other exemptions not previously considered.
    (v) Other services. Complying with requests for special services, 
other than a readily produced electronic form or format, is at the 
ASC's discretion. The ASC may recover the full costs of providing such 
services to the requester.
    (4) Use of contractors. The ASC may contact with independent 
contractors to locate, reproduce, and/or disseminate records; provided, 
however, that the ASC has determined that the ultimate cost to the 
requester will be no greater than it would be if the ASC performed 
these tasks itself. In no case will the ASC contract our 
responsibilities which FOIA provides that the ASC alone may discharge, 
such as determining the applicability of an exemption or whether to 
waive or reduce fees.
    (f) Exempt information. A request for records may be denied if the 
requested record contains information that falls into one or more of 
the following categories.\1\ If the requested record contains both 
exempt and nonexempt information, the nonexempt portions, which may 
reasonable be segregated from the exempt portions, will be released to 
the requester. If redaction is necessary, the ASC will, to the extent 
technically feasible, indicate the amount of material deleted at the 
place in the record where such deletion is made unless that indication 
in and of itself will jeopardize the purpose for the redaction. The 
categories of exempt records are as follows:
---------------------------------------------------------------------------

    \1\ Classification of a record as exempt from disclosure under 
the provisions of this paragraph (f) shall not be construed as 
authority to withhold the record if it is otherwise subject to 
disclosure under the Privacy Act of 1974 (5 U.S.C. 552a) or other 
Federal statute, any applicable regulation of ASC or any other 
Federal agency having jurisdiction thereof, or any directive or 
order of any court of competent jurisdiction.
---------------------------------------------------------------------------

    (1) Records that are specifically authorized under criteria 
established by an Executive Order to be kept secret in the interest of 
national defense or foreign policy and are in fact properly classified 
pursuant to such Executive Order;
    (2) Records related solely to the internal personnel rules and 
practices of the ASC;
    (3) Records specifically exempted from disclosure by statute, 
provided that such statute:

[[Page 72500]]

    (i) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue; or
    (ii) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld;
    (4) Trade secrets and commercial or financial information obtained 
from a person that is privileged or confidential;
    (5) Interagency or intra-agency memoranda or letters that would not 
be available by law to a private party in litigation with the ASC;
    (6) Personnel, medical, and similar files (including financial 
files) the disclosure of which would constitute a clearly unwarranted 
invasion of personal privacy;
    (7) Records compiled for law enforcement purposes, but only to the 
extent that the production of such law enforcement records:
    (i) Could reasonably be expected to interfere with enforcement 
proceedings;
    (ii) Would deprive a person of a right to a fair trail or an 
impartial adjudication;
    (ii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a State, local, or foreign agency or 
authority or any private institution which furnished records on a 
confidential basis;
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual;
    (8) Records that are contained in or related to examination, 
operating, or condition reports prepared by, on behalf of, or for the 
use of the ASC or any agency responsible for the regulation or 
supervision of financial institutions; or
    (9) Geological and geophysical information and data, including 
maps, concerning wells.
    (g) Appeals. (1) Appeals should be addressed to the Executive 
Director; ASC; 2000 K Street, NW, Suite 310; Washington, DC 20006.
    (2) A person whose initial request for records under this section, 
or whose request for a waiver of fees under paragraph (e)(1)(x) of this 
section, has been denied, either in part or in whole, has the right to 
appeal the denial to the ASC's Chairman (or designee) within 30 
business days after receipt of notification of the denial. Appeals of 
denials of initial requests or for a waiver of fees must be in writing 
and include any additional information relevant to consideration of the 
appeal.
    (3) Except in the case of an appeal for expedited treatment under 
paragraph (c)(3) of this section, the ASC will notify the appellant in 
writing within 20 business days after receipt of the appeal and will 
state:
    (i) Whether it is granted or denied in whole or in part;
    (ii) The name and title of each person responsible for the denial 
(if other than the person signing the notification);
    (iii) The exemptions relied upon for the denial in the case of 
initial requests for records; and
    (iv) The right to judicial review of the denial under the FOIA.
    (4) If a requester is appealing for denial of expedited treatment, 
the ASC will notify the appellant within ten business days after 
receipt of the appeal of the ASC's disposition.
    (5) Complete payment of any outstanding fee invoice will be 
required before an appeal is processed.
    (h) Records of another agency. If a requested record is the 
property of another Federal agency or department, and that agency or 
department, either in writing or by regulation, expressly retains 
ownership of such record, upon receipt of a request for the record the 
ASC will promptly inform the requester of this ownership and 
immediately shall forward the request to the proprietary agency or 
department either for processing in accordance with the latter's 
regulations or for guidance with respect to disposition.
    (9) A new Sec. 1102.307 is added to read as follows:


Sec. 1102.307  Disclosure of exempt records.

    (a) Disclosure prohibited. Except as provided in paragraph (b) of 
this section or by 12 CFR part 1102, subpart C, no person shall 
disclose or permit the disclosure of any exempt records, or information 
contained therein, to any persons other than those officers, directors, 
employees, or agents of the ASC or a State appraiser regulatory agency 
who has a need for such records in the performance of their official 
duties. In any instance in which any person has possession, custody or 
control of ASC exempt records or information contained therein, all 
copies of such records shall remain the property of the ASC and under 
no circumstances shall any person, entity or agency disclose or make 
public in any manner the exempt records or information without written 
authorization from the Executive Director, after consultation with the 
ASC General Counsel.
    (b) Disclosure authorized. Exempt records or information of the ASC 
may be disclosed only in accordance with the conditions and 
requirements set forth in this paragraph (b). Requests for 
discretionary disclosure of exempt records of information pursuant to 
this paragraph (b) may be submitted directly to the Executive Director. 
Such administrative request must clearly state that it seeks 
discretionary disclosure of exempt records, clearly identify the 
records sought, provide sufficient information for the ASC to evaluate 
whether there is good cause for disclosure, and meet all other 
conditions set forth in paragraph (b)(1) through (3) of this section. 
Authority to disclose or authorize disclosure of exempt records of the 
ASC is delegated to the Executive Director, after consultation with the 
ASC General Counsel.
    (1) Disclosure by Executive Director. (i) The Executive Director, 
or designee, may disclose or authorize the disclosure of any exempt 
record in response to a valid judicial subpoena, court order, or other 
legal process, and authorize any current or former member, officer, 
employee, agent of the ASC, or third party, to appear and testify 
regarding an exempt record or any information obtained in the 
performance of such person's official duties, at any administrative or 
judicial hearing or proceeding where such person has been served with a 
valid subpoena, court order, or other legal process requiring him or 
her to testify. The Executive Director shall consider the relevancy of 
such exempt records or testimony to the ligation, and the interests of 
justice, in determining whether to disclose such records or testimony. 
Third parties seeking disclosure of exempt records or testimony in 
litigation to which the ASC is not a party shall submit a request for 
discretionary disclosure directly to the Executive Director. Such 
requests shall specify the information sought with reasonable 
particularity and shall be accompanied by a statement with supporting 
documentation showing in detail the relevance of such exempt 
information to the litigation, justifying good cause for disclosure, 
and a commitment to be bound by a protective order. Failure to exhaust 
such administration request prior to service of a subpoena or other 
legal process may, in the Executive Director's discretion, serve as a 
basis for objection to such subpoena or legal process.
    (ii) The Executive Director, or designee, may in his or her 
discretion and for good cause, disclose or

[[Page 72501]]

authorize disclosure of any exempt record or testimony by a current or 
former member, officer, employee, agent of the ASC, or third party, 
sought in connection with any civil or criminal hearing, proceeding or 
investigation without the service of a judicial subpoena, or other 
legal process requiring such disclosure or testimony. If he or she 
determines that the records or testimony are relevant to the hearing, 
proceeding or investigation and that disclosure is in the best 
interests of justice and not otherwise prohibited by Federal statute. 
Where the Executive Director or designee authorizes a current or former 
member, officer, director, empl9oyee or agent of the ASC to testify or 
disclose exempt records pursuant to this paragraph (b)(1), he or she 
may, in his or her discretion, limit the authorization to so much of 
the record or testimony as is relevant to the issues at such hearing, 
proceeding or investigation, and he or she shall give authorization 
only upon fulfillment of such conditions as he or she deems necessary 
and practicable to protect the confidential nature of such records or 
testimony.
    (2) Authorization for disclosure by the Chairman of the ASC. Except 
where expressly prohibited by law, the Chairman of the ASC may, in his 
or her discretion, authorize the disclosure of any ASC records. Except 
where disclosure is required by law, the Chairman may direct any 
current or former member, officer, director, employee or agent of the 
ASC to refuse to disclose any record or to give testimony if the 
Chairman determines, in his or her discretion, that refusal to permit 
such disclosure is in the public interest.
    (3) Limitations on disclosure. All steps practicable shall be taken 
to protect the confidentiality of exempt records and information. Any 
disclosure permitted by paragraph (b) of this section is discretionary 
and nothing in paragraph (b) of this section shall be construed as 
requiring the disclosure of information. Further, nothing in paragrah 
(b) of this section shall be construed as restricting, in any manner, 
the authority of the ASC, the Chairman of the ASC, the Executive 
Director, the ASC General Counsel, or their designees, in their 
discretion and in light of the facts and circumstances attendant in any 
given case, to require conditions upon, and to limit, the form, manner, 
and extent of any disclosure permitted by this section. Wherever 
practicable, disclosure of exempt records shall be made pursuant to a 
protective order and redacted to exclude all irrelevant or non-
responsive exempt information.
    10. Section 1102.310 is added as follows:


Sec. 1102.310  Service of process.

    (a) Service. Any subpoena or other legal process to obtain 
information maintained by the ASC shall be duly issued by a court 
having jurisdiction over the ASC, and served upon the Chairman ASC; 
2000 K Street, NW, Suite 310; Washington, DC 20006. Where the ASC is 
named as a party, service of process shall be made pursuant to the 
Federal Rules of Civil Procedure upon the Chairman at the above 
address. The Chairman shall immediately forward any subpoena, court 
order or legal process to the General Counsel. If consistent with the 
terms of the subpoena, court order or legal process, the ASC may 
require the payment of fees, in accordance with the fee schedule 
referred to in Sec. 1102.306(e) prior to the release of any records 
requested pursuant to any subpoena or other legal process.
    (b) Notification by person served. If any current or former member, 
officer, employee or agent of the ASC, or any other person who has 
custody of records belonging to the ASC, is served with a subpoena, 
court order, or other process requiring that person's attendance as a 
witness concerning any matter related to official duties, or the 
production of any exempt record of the ASC, such person shall promptly 
advise the Executive Director of such service, the testimony and 
records described in the subpoena, and all relevant facts that may 
assist the Executive Director, in consultation with the ASC General 
Counsel, in determining whether the individual in question should be 
authorized to testify or the records should be produced. Such person 
also should inform the court or tribunal that issued the process and 
the attorney for the party upon whose application the process was 
issued, if known, of the substance of this section.
    (c) Appearance by person served. Absent the written authorization 
of the Executive Director or designee to disclose the requested 
information, any current or former member, officer, employee, or agent 
of the ASC, and any other person having custody of records of the ASC, 
who is required to respond to a subpoena or other legal process, shall 
attend at the time and place therein specified and respectfully decline 
to produce any such record or give any testimony with respect thereto, 
basing such refusal on this section.

    By the Appraisal Subcommittee of the Federal Financial 
Institutions Examination Counsel.

    Dated: December 20, 1999.
Herbert S. Yolles,
Chairman.
[FR Doc. 99-33476 Filed 12-27-99; 8:45 am]
BILLING CODE 6201-01-M