[Federal Register Volume 82, Number 224 (Wednesday, November 22, 2017)]
[Rules and Regulations]
[Pages 55495-55496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24052]
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FEDERAL RESERVE SYSTEM
12 CFR Part 265
[Docket No. R-1578]
RIN 7100 AE-85
Rules Regarding Delegation of Authority
AGENCY: Board of Governors of the Federal Reserve System (Board).
ACTION: Final rule.
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SUMMARY: The Board is amending its Rules Regarding Delegation of
Authority, in connection with the amendment to the Board's Rules of
Organization (published elsewhere in this issue of the Federal
Register), to provide a modified quorum procedure during exigent
circumstances.
DATES: The rule is effective November 22, 2017.
FOR FURTHER INFORMATION CONTACT: Laurie Schaffer, Associate General
Counsel, (202) 452-2272, or Daniel Hickman, Counsel, (202) 973-7432,
Legal Division, Board of Governors of the Federal Reserve System, 20th
Street and Constitution Avenue NW., Washington, DC 20551. For the
hearing impaired only, Telecommunication Device for Deaf (TDD) users
may contact (202) 263-4869.
SUPPLEMENTARY INFORMATION: The Board consists of up to seven members
appointed by the President, by and with the advice and consent of the
Senate, as provided in the Federal Reserve Act (Act).\1\ The Act does
not define a quorum of the Board, and authorizes the Board to make all
rules and regulations necessary to enable the Board effectively to
perform its duties and functions.\2\ For many years, the Board defined
a quorum to be a majority (four members) of its authorized strength of
seven members. In 2003, the Board revised its definition of quorum of
the Board to be a majority of the Board members currently in office,
unless there are five members in office, in which case a quorum would
be four members.\3\ This modification allowed the Board to function
with fewer than four members in office and enhanced the Board's ability
to function during emergencies.
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\1\ See 12 U.S.C. 241.
\2\ See 12 U.S.C. 248(i).
\3\ 66 FR 37686 (Jul 19, 2001), as amended at 68 FR 24743 (May
8, 2003).
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Over the past decade, the Board has had to operate with fewer than
five members on several occasions.\4\ Based on this experience, the
Board has determined that substantial vacancies present administrative
and logistical challenges that make it difficult to conduct routine
business and efficiently manage operations, particularly with the
Board's traditional reliance on a 3-member committee structure. In
light of these considerations, the Board has reconsidered its quorum
practice and decided to amend its definition of a quorum \5\ to provide
that a quorum of the Board is four members, unless there are three or
fewer members in office, in which case a quorum would be all members in
office. This revised definition will facilitate the Board's ability to
continue to function efficiently during periods of substantial
vacancies on the Board. This revision does not alter the number of
Board members required to constitute a quorum or the functioning of the
Board's committee structure in normal operating environments (that is,
when five or more members are in office).
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\4\ Since the current structure of the Board was established in
1936, the Board has had fewer than five members on only a few
occasions for a short period of time and the Board has never had
fewer than four members.
\5\ In a document published elsewhere in this issue of the
Federal Register.
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Since this revision may make it more difficult to convene a quorum
of the Board under exigent circumstances, the Board also has added a
modified definition of quorum providing that, in an emergency
situation, a quorum of the Board consists of a majority of the Board
members in office.\6\ An emergency situation is defined as a situation
when action on a matter is necessary to prevent, correct, or mitigate
serious harm to the economy or the stability of the financial system,
and action is required before the full Board can convene. As part of
this final rule, the Board is adding a provision to its regulations
specifying that the Chair (or the Vice Chair, if the Chair is
unavailable) would be authorized to determine when an emergency
situation exists.
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\6\ In a document published elsewhere in this issue of the
Federal Register.
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The revised rule relates solely to the internal procedure of the
Board, and, accordingly, the public notice, public comment and delayed
effective date provisions of the Administrative Procedure Act do not
apply. See 5 U.S.C. 553(b) and (d). Because public notice and comment
is not required, the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
also does not apply to this action.
List of Subjects in 12 CFR Part 265
Authority delegations (Government agencies), Banks, banking.
Authority and Issuance
For the reasons set forth in the preamble, the Board amends 12 CFR
part 265 as follows:
PART 265--RULES REGARDING DELEGATION OF AUTHORITY
0
1. The authority citation of part 265 continues to read as follows:
Authority: 12 U.S.C. 248(i) and (k).
0
2. Section 265.4(c) is added to read as follows:
Sec. 265.4 Functions delegated to Board members.
* * * * *
(c) Exigent circumstances. The Chairman is authorized to determine
when an emergency situation exists for purposes of section 2(b)(2) of
the Board's Rules of Organization. If the Chairman is unavailable or
unable to determine that an emergency situation exists, then the Vice
Chairman is authorized to determine when an emergency situation exists.
[[Page 55496]]
By order of the Board of Governors of the Federal Reserve
System, October 31, 2017.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017-24052 Filed 11-21-17; 8:45 am]
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