Assessment of Fees
| Published date | 24 June 2020 |
| Record Number | 2020-13719 |
| Section | Rules and Regulations |
| Court | The Comptroller Of The Currency Office |
Federal Register, Volume 85 Issue 122 (Wednesday, June 24, 2020)
[Federal Register Volume 85, Number 122 (Wednesday, June 24, 2020)]
[Rules and Regulations]
[Pages 37731-37734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13719]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 85, No. 122 / Wednesday, June 24, 2020 /
Rules and Regulations
[[Page 37731]]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 8
[Docket ID OCC-2020-0024]
RIN 1557-AE95
Assessment of Fees
AGENCY: Office of the Comptroller of the Currency, Treasury.
ACTION: Interim final rule and request for comment.
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SUMMARY: The Office of the Comptroller of the Currency (OCC) is
adopting an interim final rule to reduce assessments in response to the
national emergency declared in connection with coronavirus disease 2019
(COVID-19). Under the interim final rule, assessments due on September
30, 2020, for national banks, Federal savings associations, and Federal
branches and agencies of foreign banks (collectively, banks under the
jurisdiction of the OCC) will be calculated using the December 31,
2019, ``Consolidated Reports of Condition and Income'' (Call Report)
for each institution, rather than the June 30, 2020 Call Report. This
will result in lower assessments for most banks under the jurisdiction
of the OCC. In the event a bank's assets as reported on the June 30,
2020, Call Report are lower than on the December 31, 2019, Call Report,
the OCC will calculate the assessment due on September 30, 2020, for
the institution using the June 30, 2020, Call Report.
DATES: The interim final rule is effective from June 24, 2020 through
October 15, 2020. Comments on the interim final rule must be received
no later than July 24, 2020.
ADDRESSES: Interested parties are encouraged to submit written
comments. Commenters are encouraged to submit comments through the
Federal eRulemaking Portal or email, if possible. Please use the title
``Assessment of Fees'' to facilitate the organization and distribution
of the comments. You may submit comments by any of the following
methods:
Federal eRulemaking Portal--Regulations.gov Classic or
Regulations.gov Beta:
Regulations.gov Classic: Go to https://www.regulations.gov/. Enter
``Docket ID OCC-2020-0024'' in the Search Box and click ``Search.''
Click on ``Comment Now'' to submit public comments. For help with
submitting effective comments please click on ``View Commenter's
Checklist.'' Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov, including instructions for
submitting public comments.
Regulations.gov Beta: Go to https://beta.regulations.gov/ or click
``Visit New Regulations.gov Site'' from the Regulations.gov Classic
homepage. Enter ``Docket ID OCC-2020-0024'' in the Search Box and click
``Search.'' Public comments can be submitted via the ``Comment'' box
below the displayed document information or by clicking on the document
title and then clicking the ``Comment'' box on the top left side of the
screen. For help with submitting effective comments please click on
``Commenter's Checklist.'' For assistance with the Regulations.gov Beta
site, please call (877) 378-5457 (toll free) or (703) 454-9859 Monday-
Friday, 9 a.m.-5 p.m. ET or email [email protected].
Email: [email protected].
Mail: Chief Counsel's Office, Attention: Comment
Processing, Office of the Comptroller of the Currency, 400 7th Street
SW, Suite 3E-218, Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``Docket ID OCC-2020-0024'' in your comment. In general, the OCC will
enter all comments received into the docket and publish the comments on
the Regulations.gov website without change, including any business or
personal information provided such as name and address information,
email addresses, or phone numbers. Comments received, including
attachments and other supporting materials, are part of the public
record and subject to public disclosure. Do not include any information
in your comment or supporting materials that you consider confidential
or inappropriate for public disclosure.
You may review comments and other related materials that pertain to
this rulemaking action by any of the following methods:
Viewing Comments Electronically--Regulations.gov Classic
or Regulations.gov Beta: Regulations.gov Classic: Go to https://www.regulations.gov/. Enter ``Docket ID OCC-2020-0024'' in the Search
box and click ``Search.'' Click on ``Open Docket Folder'' on the right
side of the screen. Comments and supporting materials can be viewed and
filtered by clicking on ``View all documents and comments in this
docket'' and then using the filtering tools on the left side of the
screen. Click on the ``Help'' tab on the Regulations.gov home page to
get information on using Regulations.gov. The docket may be viewed
after the close of the comment period in the same manner as during the
comment period.
Regulations.gov Beta: Go to https://beta.regulations.gov/ or click
``Visit New Regulations.gov Site'' from the Regulations.gov Classic
homepage. Enter ``Docket ID OCC-2020-0024'' in the Search Box and click
``Search.'' Click on the ``Comments'' tab. Comments can be viewed and
filtered by clicking on the ``Sort By'' drop-down on the right side of
the screen or the ``Refine Results'' options on the left side of the
screen. Supporting materials can be viewed by clicking on the
``Documents'' tab and filtered by clicking on the ``Sort By'' drop-down
on the right side of the screen or the ``Refine Results'' options on
the left side of the screen.'' For assistance with the Regulations.gov
Beta site, please call (877) 378-5457 (toll free) or (703) 454- 9859
Monday-Friday, 9 a.m.-5 p.m. ET or email
[email protected]. The docket may be viewed after the
close of the comment period in the same manner.
FOR FURTHER INFORMATION CONTACT: Margaret Sherry, Principal Deputy
Comptroller for Management and Deputy Chief Financial Officer,
Financial Management, (202) 649-5658, or Mitchell Plave, Special
Counsel, Chief Counsel's Office, (202) 649-5490,
[[Page 37732]]
for persons who are deaf or hard of hearing, TTY, (202) 649-5597.
SUPPLEMENTARY INFORMATION:
I. Background
The National Bank Act \1\ and the Home Owners' Loan Act \2\
authorize the Comptroller to recover the costs of the OCC's operations
through assessments, fees, and other charges on banks under the
jurisdiction of the OCC.\3\ In setting assessments, the Comptroller has
broad authority to consider variations among institutions, including
the nature and scope of the activities of the entity, the amount and
type of assets that the entity holds, the financial and managerial
condition of the entity, and any other factor the Comptroller
determines is appropriate.\4\
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\1\ Revised Statutes of the United States, Title LXII, 12 U.S.C.
1 et seq.
\2\ The Home Owners' Loan Act, 12 U.S.C. 1461 et seq.
\3\ 12 U.S.C. 16, 481, 482, 1467.
\4\ 12 U.S.C. 16. See also 12 U.S.C. 1467 (providing that the
Comptroller has the authority to recover costs of examination of
federal savings associations ``as the Comptroller deems necessary or
appropriate.'').
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The OCC collects assessments from banks under its jurisdiction in
accordance with 12 CFR part 8. Under part 8, the base assessment for
banks is calculated using a table with eleven categories, or brackets,
each of which comprises a range of asset-size values. The assessment
for each bank is the sum of a base amount, which is the same for every
bank in its asset-size bracket, plus a marginal amount, which is
computed by applying a marginal assessment rate to the amount in excess
of the lower boundary of the asset-size bracket.\5\ The marginal
assessment rate declines as asset size increases, reflecting economies
of scale in bank examination and supervision.
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\5\ 12 CFR 8.2(a). Only the total domestic assets of federal
branches and agencies are subject to assessment. 12 CFR 8.2(b)(2).
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The OCC's annual Notice of Office of the Comptroller of the
Currency Fees and Assessments (Notice of Fees) sets forth the marginal
assessment rates applicable to each asset-size bracket for each year,
as well as other assessment components and fees. Under part 8, the OCC
may adjust the marginal rates to account for inflation through the
annual Notice of Fees.\6\ The OCC also has the discretion under part 8
to adjust marginal rates by amounts other than inflation.\7\ The OCC
may issue an interim or amended Notice of Fees if the Comptroller
determines that it is necessary to revise assessments to meet the OCC's
supervisory obligations.\8\
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\6\ 12 CFR 8.2(a)(4).
\7\ Id.
\8\ 12 CFR 8.8(b).
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Under 12 CFR 8.2, the OCC collects assessments on a semiannual
basis, with fees due by March 31 and September 30 (payment due dates)
of each year for the six-month period beginning on January 1 and July 1
before each payment due date.\9\ Each semiannual assessment is based
upon the total assets shown in the institution's most recent Call
Report preceding the payment date.
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\9\ 12 CFR 8.2(a) and 8.2(b)(1).
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II. Description of the Interim Final Rule
COVID-19 has significantly affected financial institutions,
businesses, and consumers. In light of the adverse economic effect of
the extraordinary measures that have been taken to limit the public
health impacts of the COVID-19 pandemic, the OCC is issuing this
interim final rule to reduce assessments for the upcoming semiannual
assessment. Under the interim final rule, which amends 12 CFR part 8,
the OCC will calculate assessments due on September 30, 2020, using
Call Report assets as of December 31, 2019, rather June 30, 2020. The
use of December 31, 2019, Call Report assets will result in reduced
assessments for most banks. If an institution's June 30, 2020, Call
Report assets are lower than the institution's assets as reported on
December 31, 2019, the OCC will use the June 30, 2020, Call Report for
calculation of the institution's assessment.
The interim final rule will expire after the collection of
assessments on September 30, 2020. Thereafter, semiannual assessments
will be based on the total assets shown in each institution's most
recent Call Report preceding the payment date.
The OCC seeks comment on all aspects of this interim final rule.
III. Administrative Law Matters
A. Administrative Procedure Act
The OCC is issuing this interim final rule without prior notice and
the opportunity for public comment and the delayed effective date
ordinarily prescribed by the Administrative Procedure Act (APA).\10\
Pursuant to section 553(b)(B) of the APA, general notice and
opportunity for the public to comment are not require with respect to a
rulemaking when an ``agency for good cause finds (and incorporates the
finding and a brief statement of reasons therefor in the rules issued)
that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.'' \11\
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\10\ 5 U.S.C. 553.
\11\ 5 U.S.C. 553(b)(B).
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The OCC believes that the public interest is best served by
implementing the interim final before the next assessment collection.
As discussed above, COVID-19 has significantly affected global economic
activity. The reduction of assessments for banks under the jurisdiction
of the OCC will reduce burden during this period. Issuance of an
interim final rule will provide for expedited implementation of the
assessment change and permit the OCC to timely issue an amended Notice
of Fees, which will implement the assessment change for the semiannual
assessment due on September 30, 2020.\12\ For these reasons, the OCC
believes that there is good cause consistent with the public interest
to issue the interim final rule without advance notice and comment.\13\
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\12\ 12 CFR 8.8. An amended Notice of Fees becomes effective 30
days after issuance. Id. 8.8(b).
\13\ 5 U.S.C. 553(b)(B); 553(d)(3).
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The APA also requires a 30-day delayed effective date, except for
(1) substantive rules which grant or recognize an exemption or relieve
a restriction; (2) interpretative rules and statements of policy; or
(3) as otherwise provided by the agency for good cause.\14\ Because the
rule grants an exemption, the interim final rule is exempt from the
APA's delayed effective date requirement.\15\ Additionally, the OCC
finds good cause to publish the interim final rule with an immediate
effective date for the same reasons set forth above. While the OCC
believes that there is good cause to issue the rule without advance
notice and comment and with an immediate effective date, the OCC is
interested in the views of the public and requests comment on all
aspects of the interim final rule.
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\14\ 5 U.S.C. 553(d).
\15\ 5 U.S.C. 553(d)(1).
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B. Congressional Review Act
For purposes of Congressional Review Act, the Office of Management
and Budget (OMB) makes a determination as to whether a final rule
constitutes a ``major'' rule.\16\ If a rule is deemed a ``major rule''
by the OMB, the Congressional Review Act generally provides that the
rule may not take effect until at least 60 days following its
publication.\17\
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\16\ 5 U.S.C. 801 et seq.
\17\ 5 U.S.C. 801(a)(3).
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The Congressional Review Act defines a ``major rule'' as any rule
that the Administrator of the Office of Information and Regulatory
Affairs of
[[Page 37733]]
the OMB finds has resulted in or is likely to result in (A) an annual
effect on the economy of $100,000,000 or more; (B) a major increase in
costs or prices for consumers, individual industries, Federal, State,
or local government agencies or geographic regions, or (C) significant
adverse effects on competition, employment, investment, productivity,
innovation, or on the ability of United States-based enterprises to
compete with foreign based enterprises in domestic and export
markets.\18\
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\18\ 5 U.S.C. 804(2).
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For the same reasons set forth above with respect to APA
requirements, the OCC is adopting the interim final rule without the
delayed effective date generally prescribed under the Congressional
Review Act. The delayed effective date required by the Congressional
Review Act does not apply to any rule for which an agency for good
cause finds (and incorporates the finding and a brief statement of
reasons therefore in the rule issued) that notice and public procedure
thereon are impracticable, unnecessary, or contrary to the public
interest.\19\ Because the interim rule will reduce assessments and
provide relief to institutions during the financial stress introduced
by the measures taken to limit the public health risks of the COVID-19
pandemic, the OCC believes that delaying the rule would be contrary to
the public interest.
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\19\ 5 U.S.C. 808(2).
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As required by the Congressional Review Act, the OCC will submit
this interim final rule and other appropriate reports to Congress and
the Government Accountability Office for review.
C. Paperwork Reduction Act
In accordance with the requirements of the Paperwork Reduction Act
of 1995 (PRA),\20\ the OCC may not conduct or sponsor, and a respondent
is not required to respond to, an information collection unless it
displays a currently valid OMB control number. The OCC has reviewed
this interim final rule and determined that it would not introduce any
new or revise any collection of information pursuant to the PRA.
Therefore, no submissions will be made to OMB.
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\20\ 44 U.S.C. 3501-3521.
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D. Regulatory Flexibility Act Analysis
The Regulatory Flexibility Act (RFA) \21\ generally requires that
an agency to consider whether a proposed rule will have a significant
economic impact on a substantial number of small entities.\22\ The RFA
applies only to rules for which an agency publishes a general notice of
proposed rulemaking pursuant to 5 U.S.C. 553(b).\23\ As discussed
above, consistent with section 553(b)(B) of the APA, the OCC has
determined for good cause that general notice and opportunity for
public comment is unnecessary, and, therefore, the OCC is not issuing a
notice of proposed rulemaking. Accordingly, the OCC has concluded that
the RFA's requirements relating to initial and final regulatory
flexibility analysis do not apply.
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\21\ U.S.C. 601 et seq.
\22\ 5 U.S.C. 604. Under regulations issued by the Small
Business Administration, a small entity includes a depository
institution, bank holding company, or savings and loan holding
company with total assets of $600 million or less and trust
companies with total assets of $41.5 million or less. See 13 CFR
121.201.
\23\ 5 U.S.C. 604(a).
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Nevertheless, the OCC seeks comment on whether, and the extent to
which, the interim final rule would affect a significant number of
small entities.
E. Riegle Community Development and Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the Riegle Community Development and
Regulatory Improvement Act (RCDRIA),\24\ in determining the effective
date and administrative compliance requirements for new regulations
that impose additional reporting, disclosure, or other requirements on
insured depository institutions (IDIs), the OCC must consider,
consistent with the principle of safety and soundness and the public
interest, any administrative burdens that such regulations would place
on depository institutions, including small depository institutions,
and customers of depository institutions, as well as the benefits of
such regulations. In addition, section 302(b) of RCDRIA requires new
regulations and amendments to regulations that impose additional
reporting, disclosure, or other new requirements on IDIs generally to
take effect on the first day of a calendar quarter that begins on or
after the date on which the regulations are published in final form,
with certain exceptions, including for good cause.\25\ The interim
final rule would not impose any additional reporting, disclosure, or
other new requirements on IDIs. Therefore, for the reasons described
above, the OCC finds good cause exists under section 302 of RCDRIA to
publish this interim final rule with an immediate effective date. As
such, the interim final rule will be effective on June 24, 2020.
Nevertheless, the OCC seeks comment on RCDRIA.
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\24\ 12 U.S.C. 4802(a).
\25\ 12 U.S.C. 4802.
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F. Use of Plain Language
Section 722 of the Gramm-Leach-Bliley Act \26\ requires the Federal
banking agencies to use plain language in all proposed and final rules
published after January 1, 2000. The OCC has sought to present the
interim final rule in a simple and straightforward manner. The OCC
invites comment on whether there are additional steps it could take to
make the rule easier to understand. For example:
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\26\ 12 U.S.C. 4809.
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Have we organized the material to suit your needs? If not,
how could this material be better organized?
Are the requirements in the regulation clearly stated? If
not, how could the regulation be more clearly stated?
Does the regulation contain language or jargon that is not
clear? If so, which language requires clarification?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the regulation easier to
understand? If so, what changes to the format would make the regulation
easier to understand? What else could we do to make the regulation
easier to understand?
G. OCC Unfunded Mandates Reform Act of 1995 Determination
Consistent with the Unfunded Mandates Reform Act of 1995 (UMRA), 2
U.S.C. 1531 et seq., the OCC typically prepares a budgetary impact
statement before promulgating a rule that includes 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. However, UMRA does not apply to final
rules for which a general notice of proposed rulemaking was not
published.\27\ Therefore, because the OCC has found good cause to
dispense with notice and comment for this interim final rule, the OCC
has not prepared a budgetary impact statement for this interim final
rule.
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\27\ See 2 U.S.C. 1532(a).
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List of Subjects in 12 CFR Part 8
Assessments, Federal branches and agencies, National banks,
Reporting and recordkeeping requirements, Savings associations.
[[Page 37734]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Chapter I
Authority and Issuance
For the reasons set forth in the preamble, chapter I of title 12 of
the Code of Federal Regulations is amended as follows:
PART 8--ASSESSMENT OF FEES
0
1. The authority for part 8 continues to read as follows:
Authority: 12 U.S.C. 16, 93a, 481, 482, 1467, 1831c, 1867, 3102,
3108, and 5412(b)(2)(B); and 15 U.S.C. 78c and 78l.
0
2. Section 8.2 is amended by:
0
a. Redesignating paragraph (a)(5) as paragraph (a)(5)(i);
0
b. Adding paragraph (a)(5)(ii);
0
c. Redesignating paragraph (b)(3) as paragraph (b)(3)(i); and
0
d. Adding paragraph (b)(3)(ii).
The additions read as follows:
Sec. 8.2 Semiannual assessment.
(a) * * *
(5) * * *
(ii) Notwithstanding paragraph (a)(5)(i) of this section, the
semiannual assessment for each national bank or Federal savings
association due on September 30, 2020, will be based upon the lesser of
total assets shown in the national bank's or Federal savings
association's December 31, 2019, Call Report or June 30, 2020, Call
Report.
* * * * *
(b) * * *
(3) * * *
(ii) Notwithstanding paragraph (b)(3)(i) of this section, the
semiannual assessment for each Federal branch and each agency due on
September 30, 2020, will be based upon the lesser of total assets shown
in the Federal branch's or agency's December 31, 2019, Call Report or
June 30, 2020, Call Report.
* * * * *
Brian P. Brooks,
Acting Comptroller of the Currency.
[FR Doc. 2020-13719 Filed 6-23-20; 8:45 am]
BILLING CODE 4810-33-P
