[Federal Register Volume 70, Number 221 (Thursday, November 17, 2005)]
[Rules and Regulations]
[Pages 69641-69644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-22815]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 8

[Docket No. 05-20]
RIN 1557-AC96


Assessment of Fees

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Interim final rule.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) is issuing 
this interim final rule, with a request for comment, to amend its 
regulation at 12 CFR Part 8 concerning the timing of payments of OCC 
assessments. The interim final rule replaces the current process of 
assessment collection, which requires national banks to make the 
initial calculation of the amount due to the OCC. Under the revised 
assessment of fees process established by this interim rule, the OCC, 
rather than each national bank, will calculate the semiannual 
assessment fee based on the most recent Consolidated Reports of 
Condition and Income (Call Report). The fee will be due by March 31 and 
September 30 of each year, two months later than under the current 
process. Thus, payments that would have been due on January 31, 2006, 
will instead be due on March 31, 2006. The OCC will notify each 
national bank of the amount of its semiannual assessment and will 
automatically deduct that amount from each bank's designated bank 
account on the payment due date. The interim rule changes the 
assessment collection process only; it does not make any changes to the 
method for calculating assessments due from national banks.

DATES: Effective Date: This rule is effective December 19, 2005.
    Comment Date: Comments must be received by December 19, 2005.

ADDRESSES: Comments should be directed to:
    You should include OCC and Docket Number--in your comment. You may 
submit comments by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     OCC Web site: http://www.occ.treas.gov. Click on ``Contact 
the OCC,'' scroll down and click on ``Comments on Proposed 
Regulations.''
     E-mail address: [email protected].
     Fax: (202) 874-4448.
     Mail: Office of the Comptroller of the Currency, 250 E 
Street, SW., Mail Stop 1-5, Washington, DC 20219.
     Hand Delivery/Courier: 250 E Street, SW., Attn: Public 
Information Room, Mail Stop 1-5, Washington, DC 20219.
    Instructions: All submissions received must include the agency name 
(OCC) and docket number or Regulatory Information Number (RIN) for this 
interim final rule. In general, OCC will enter all comments received 
into the docket without change, including any business or personal 
information that you provide. You may review comments and other related 
materials by any of the following methods:
     Viewing Comments Personally: You may personally inspect 
and photocopy comments at the OCC's Public Information Room, 250 E 
Street, SW., Washington, DC. You can make an appointment to inspect 
comments by calling (202) 874-5043.
     Viewing Comments Electronically: You may request e-mail or 
CD-ROM copies of comments that the OCC has received by contacting the 
OCC's Public Information Room at [email protected].
     Docket: You may also request available background 
documents and project summaries using the methods described above.

FOR FURTHER INFORMATION CONTACT: Jean Campbell, Senior Attorney, or 
Mitchell Plave, Counsel, Legislative and Regulatory Activities 
Division, (202) 874-5090; or Bruce W. Halper, Team Leader--Revenue, 
Financial Management, (202) 874-2199, Office of the Comptroller of the 
Currency, 250 E Street, SW., Washington, DC 20219.

[[Page 69642]]


SUPPLEMENTARY INFORMATION:

I. Background

    The National Bank Act authorizes the OCC to collect assessments, 
fees, or other charges as necessary or appropriate to carry out the 
responsibilities of the Office. 12 U.S.C. 482. Under this authority, 
the OCC collects semiannual assessments from national banks, as 
described in 12 CFR part 8 and in the Notice of Comptroller of the 
Currency Fees, which is published no later than the first business day 
of December each year.\1\ Part 8 currently requires each national bank 
to compute the amount of its semiannual assessment fee and pay that 
amount to the OCC by January 31 and July 31 of each year. Banks base 
their assessments on the data each bank submits in the most recent Call 
Report.
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    \1\ Under part 8, the OCC also collects assessments from Federal 
branches and Federal agencies. The changes provided for in this 
interim rule will also apply to payment of assessments by Federal 
branches and Federal agencies.
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    The OCC currently reviews each assessment computation after 
receiving Call Report data from the Federal Deposit Insurance 
Corporation (FDIC) in March and September of each year. The OCC finds 
on average approximately 150 errors per assessment cycle through those 
reviews. When the OCC finds an overpayment or underpayment of a 
semiannual assessment, the OCC contacts the national bank, explains the 
error, and refunds (or collects, as the case may be) the funds 
electronically.
    This assessment collection process is cumbersome and has become 
outdated, and the procedure for reviewing and correcting 
miscalculations is inefficient. For these reasons the interim rule will 
revise the assessment process as described below.

II. Description of the Interim Rule

Calculation of the Semiannual Assessment Fee

    The interim rule provides that the OCC will calculate the 
semiannual assessment fee due from each bank based on the most recent 
Call Report data. Under the new assessment process, the OCC will send 
each national bank an assessment collection notification no later than 
7 business days prior to March 31 and September 30 of each year. The 
assessment will cover the six month period beginning on January 1 and 
July 1 before each payment date. The OCC will automatically deduct the 
assessed amount from the bank's designated bank account on March 31 and 
September 30. By delaying the assessment calculation date by two 
months, the OCC can collect assessments based on final Call Report 
data, and thus eliminate the cumbersome correction process currently 
required. This streamlining of our assessment collection process has 
the effect of reducing regulatory burden for national banks and is thus 
consistent with the objectives of section 2222 of the Economic Growth 
and Regulatory Paperwork Reduction Act of 1996,\2\ which calls for the 
periodic review of the OCC's regulation and the elimination of 
unnecessary burden.
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    \2\ Pub. L. 104-208, section 2222, 110 Stat. 3009-414 to 3009-
415 (Sept. 30, 1996).
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    Under the interim rule, a national bank will be able to notify the 
OCC of any errors in the calculation of semiannual assessments or 
errors in the electronic transfer process. The Comptroller will be 
obligated to respond to such notices within 30 days of receipt.

Technical and Conforming Amendments

    The interim rule eliminates an erroneous sentence in section 8.7(a) 
regarding delinquent semiannual assessment payments. The sentence 
duplicates in part the two sentences that follow it, and our research 
indicates that it is likely the result of a clerical or typographical 
error.
    The rule also makes conforming changes to section 8.7(b) to 
describe the new streamlined procedure to correct errors in the 
assessment process. The interim rule makes non-substantive changes to 
conform part 8 to the new assessment collection process and other minor 
technical changes. Finally, in Sec.  8.6(a)(1), (2), and (4), and Sec.  
8.7(a), the interim rule eliminates references to ``District of 
Columbia,'' ``District of Columbia banks'' and ``each district bank'' 
to reflect the provisions of the 2004 District of Columbia Omnibus 
Authorization Act, section 8, Public Law 108-386, 118 Stat. 2228 
(2004), which shifted regulatory responsibility of District of Columbia 
banks from the OCC to the FDIC and Board of Governors of the Federal 
Reserve System.
Statement of Good Cause for Issuing an Interim Rule; Solicitation of 
Comments
    Under 5 U.S.C. 553(b)(B), notice and comment rulemaking is not 
required if an agency, for good cause, finds that ``notice and public 
procedure thereon are impracticable, unnecessary, or contrary to the 
public interest.'' \3\ This interim final rule makes only minor changes 
to the assessment collection process. It does not change the method for 
calculating assessments due from national banks or affect the amount of 
assessment due from each national bank. Completion of notice and 
comment rulemaking procedures prior to the effective date of this rule 
are unnecessary because the changes made by the rule are non-
substantive and do not affect the amount of a national bank's 
assessment or accelerate the assessment date. Making this interim final 
rule effective prior to the completion of notice and comment procedures 
is consistent with the public interest because the rule reduces 
regulatory burden for all national banks. Although notice and comment 
are not required prior to the effective date of the rule, we invite 
comments on all aspects of the rule. We will revise the rule if 
necessary or appropriate in light of the comments.
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    \3\ 5 U.S.C. 553(b)(B).
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Solicitation of Comments on Use of Plain Language
    The OCC also requests comment on whether the interim rule is 
written clearly and is easy to understand. On June 1, 1998, the 
President issued a memorandum directing each agency in the Executive 
branch to write its rules in plain language. This directive applies to 
all new proposed and interim rulemaking documents issued on or after 
January 1, 1999. In addition, Public Law 106-102 requires each Federal 
agency to use plain language in all proposed and interim rules 
published after January 1, 2000. The OCC invites comments on how to 
make this rule clearer. For example, you may wish to discuss:
    (1) Whether we have organized the material to suit your needs;
    (2) Whether the requirements of the rule are clear; or
    (3) Whether there is something else we could do to make the rule 
easier to understand.

Effective Date

    This interim final rule takes effect 30 days after publication in 
the Federal Register. 5 U.S.C. 553(d). Under 12 U.S.C. 4802(b)(1), 
Federal banking agency regulations or amendments to regulations ``which 
impose additional reporting, disclosure, or other requirements on 
insured depository institutions'' must be effective on the first day of 
a calendar quarter which begins on or after the date on which the 
regulations are published in final form. As described above, this 
interim rule operates to reduce burden on national banks. Accordingly, 
the requirement to be effective on the first day of a calendar

[[Page 69643]]

quarter does not apply to this interim rule.
Regulatory Flexibility Act Analysis
    The Regulatory Flexibility Act (Pub. L. 96-354, Sept. 19, 1980) 
(RFA) applies only to rules for which an agency publishes a general 
notice of proposed rulemaking pursuant to 5 U.S.C. 553(b).\4\ Because 
the OCC has determined for good cause that the Administrative Procedure 
Act does not require public notice and comment on this final rule, we 
are not publishing a general notice of proposed rulemaking. Thus, the 
RFA does not apply to this interim final rule.
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    \4\ 5 U.S.C. 601(2).
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Executive Order 12866
    The OCC has determined that this interim final rule is not a 
significant regulatory action under Executive Order 12866.
Unfunded Mandates Reform Act of 1995 Determinations
    Section 202 of the Unfunded Mandates Reform Act of 1995 \5\ 
(Unfunded Mandates Act) requires that an agency prepare a budgetary 
impact statement before promulgating any rule likely to result in a 
Federal mandate that may result in the expenditure by state, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any one year. If a budgetary impact statement is 
required, section 205 of the Unfunded Mandates Act also requires the 
agency to identify and consider a reasonable number of regulatory 
alternatives before promulgating the rule. The OCC has determined that 
this interim rule will not result in expenditures by state, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any one year. Accordingly, the OCC has not prepared 
a budgetary impact statement or specifically addressed the regulatory 
alternatives considered.
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    \5\ 2 U.S.C. 1532.
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Paperwork Reduction Act
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Ch. 3506; 5 CFR part 1320 Appendix A.1), we have reviewed the interim 
rule to assess any information collections. There are no collections of 
information as defined by the Paperwork Reduction Act in the interim 
rule.

List of Subjects in 12 CFR Part 8

    Assessment of fees.

Authority and Issuance

0
For the reasons set forth in the preamble, part 8 of chapter I of title 
12 of the Code of Federal Regulations is amended as follows:

PART 8--ASSESSMENT OF FEES

0
1. The authority citation for part 8 is revised to read as follows:

    Authority: 12 U.S.C. 93a, 481, 482, 1867, 3102, and 3108; and 15 
U.S.C. 78c and 78l.


0
2. Section 8.1 is revised to read as follows:


Sec.  8.1  Scope and application.

    The assessments contained in this part are made pursuant to the 
authority contained in 12 U.S.C. 93a, 481, 482, 1867, 3102, and 3108; 
and 15 U.S.C. 78c and 78l.

0
3. Section 8.2 is revised by:
0
a. Revising paragraph (a) introductory text and paragraphs (a)(2) and 
(a)(5); and
0
b. Revising paragraphs (b)(1) and (b)(3).
    The revisions read as follows:


Sec.  8.2  Semiannual assessment.

    (a) Each national bank shall pay to the Comptroller of the Currency 
a semiannual assessment fee, due by March 31 and September 30 of each 
year, for the six month period beginning on January 1 and July 1 before 
each payment date. The Comptroller of the Currency will calculate the 
amount due under this section and provide a notice of assessments to 
each national bank no later than 7 business days prior to March 31 and 
September 30 of each year. The semiannual assessment will be calculated 
as follows:
* * * * *
    (2) The second part is the calculation of assessments due on the 
remaining assets of the bank in excess of Column E. The excess is 
assessed at the marginal rate shown in Column D.
* * * * *
    (5) The specific marginal rates and complete assessment schedule 
will be published in the ``Notice of Comptroller of the Currency 
Fees,'' provided for at Sec.  8.8 of this part. Each semiannual 
assessment is based upon the total assets shown in the national bank's 
most recent ``Consolidated Reports of Condition and Income'' (Call 
Report) preceding the payment date. Each bank subject to the 
jurisdiction of the Comptroller of the Currency on the date of the 
second or fourth quarterly Call Report required by the Office under 12 
U.S.C. 161 is subject to the full assessment for the next six month 
period.
* * * * *
    (b)(1) Each Federal branch and each Federal agency shall pay to the 
Comptroller of the Currency a semiannual assessment fee, due by March 
31 and September 30 of each year, for the six month period beginning on 
January 1 and July 1 before each payment date. The Comptroller of the 
Currency will calculate the amount due under this section and provide a 
notice of assessments to each national bank no later than 7 business 
days prior to March 31 and September 30 of each year.
* * * * *
    (3) Each semiannual assessment of each Federal branch or Federal 
agency is based upon the total assets shown in the Federal branch's 
Call Report most recently preceding the payment date. Each Federal 
branch or Federal agency subject to the jurisdiction of the OCC on the 
date of the second and fourth Call Reports is subject to the full 
assessment for the next six-month period.
* * * * *


Sec.  8.6  [Amended]

0
4. Revise Sec.  8.6 by:
0
a. Removing in paragraph (a)(1), the phrase ``and District of 
Columbia'';
0
b. Removing in paragraph (a)(2), the phrase ``, District of Columbia 
banks,'';
0
c. Removing in paragraph (a)(4), the phrase ``, District of Columbia 
banks,''; and
0
d. Removing in paragraph (c)(1)(i), the word ``currency'' and adding in 
lieu thereof the word ``Currency''.
0
5. Revise Sec.  8.7 by:
0
a. Removing in the first sentence of paragraph (a) the phrase ``each 
district bank,'';
0
b. Removing in the first sentence of paragraph (a) the word 
``currency'' and by adding in lieu thereof the word ``Currency'';
0
c. Removing the third sentence of paragraph (a);
0
d. Revising the first two sentences of paragraph (b) introductory text; 
and
0
e. Revising the first sentence of paragraph (b)(2).
    The revisions read as follows:


Sec.  8.7  Payment of interest on delinquent assessments and 
examination and investigation fees.

* * * * *
    (b) In the event that an entity that is required to make semiannual 
assessment payments or trust examination fee payments believes that the 
notice of assessments prepared by the Comptroller of the Currency 
contains an error of miscalculation, the entity may provide the 
Comptroller of the Currency with a written request for a revised 
assessment notice and a

[[Page 69644]]

refund of any overpayments. Any such request for a revised notice and 
refund must be made after timely payment of the semiannual assessment 
under the dates specified in Sec.  8.2. * * *
* * * * *
    (2) Provide notice of its unwillingness to accept the request for a 
revised notice of assessments. * * *
* * * * *


Sec.  8.8  [Amended]

0
6. Revise Sec.  8.8 by:
0
a. Removing in the heading of paragraph (b) the word ``comptroller'' 
and by adding in lieu thereof the word ``Comptroller''; and
0
b. Removing in the first sentence of paragraph (b) the word ``Office'' 
and by adding in lieu thereof the word ``OCC''.

    Dated: November 10, 2005.
John C. Dugan,
Comptroller of the Currency.
[FR Doc. 05-22815 Filed 11-16-05; 8:45 am]
BILLING CODE 4810-33-U