[Federal Register Volume 82, Number 224 (Wednesday, November 22, 2017)]
[Rules and Regulations]
[Pages 55496-55497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25122]
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FEDERAL RESERVE SYSTEM
12 CFR Part 265
[Docket No. OP-1578]
Rules of Organization
AGENCY: Board of Governors of the Federal Reserve System (Board).
ACTION: Amendment to Rules of Organization.
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SUMMARY: The Board has amended its definition of a quorum of the Board
in the Board's Rules of Organization. The amendment is designed to
facilitate the Board's ability to continue to function efficiently
during periods of substantial vacancies on the Board. The amendment
does not alter the number of Board members required to constitute a
quorum in normal operating environments. The amendment also addresses
Board member recusals and disqualifications. In addition, the Board has
provided a modified definition of a quorum during exigent
circumstances. In connection with this modification, the Board is
amending its Rules Regarding Delegation of Authority, published
elsewhere in this Federal Register, to authorize the Chair (or Vice
Chair, if the Chair is unavailable) to determine when an emergency
situation exists.
DATES: The amendment to the Board's Rules of Organization became
effective on October 25, 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 a 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 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.
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Increasing the quorum requirement for a four-member and three-
member Board may make it more difficult to convene a quorum if a member
of the Board is recused or disqualified from a particular matter. To
address this concern, the Board also has amended its Rules of
Organization to clarify that Board members who are recused or
disqualified from participating in a particular matter will be excluded
from calculations of the quorum requirement for that matter.
Since the revisions 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. 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. The Board is
amending its Rules Regarding Delegation of Authority (12 CFR part 265),
published elsewhere in this Federal Register, to authorize the Chair
(or the Vice Chair, if the Chair is unavailable) to determine when an
emergency situation exists.
The Board has incorporated these revisions into its Rules of
Organization and Rules Regarding Delegation of Authority,\5\ published
elsewhere in this Federal Register. The revisions relate 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.
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\5\ The Board's Rules Regarding Delegation of Authority are
codified at 12 CFR part 265.
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Board of Governors--Rules of Organization
0
Section 2 paragraph (b) is revised to read as follows:
Section 2 Composition, Location, and Public Information
* * * * *
(b)(1) Quorum. Four Board members constitutes a quorum of the Board
for purposes of transacting business except that, if there are three or
fewer Board members in office, then a quorum consists of all Board
members currently in office. If a Board member is recused or
disqualified from participating in a matter, the member shall not be
counted for purposes of calculating the quorum for that matter.
(b)(2) Exigent Circumstances. In an emergency situation, a quorum
of the Board consists of a majority of the Board members in office. An
emergency situation exists 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.
[[Page 55497]]
By order of the Board of Governors of the Federal Reserve
System, November 15, 2017.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017-25122 Filed 11-21-17; 8:45 am]
BILLING CODE 6210-01-P