Federal Register / Vol. 69, No. 196 / Tuesday, October 12, 2004 / Rules and Regulations 60543

which herds will be depopulated by 

developing staging areas at slaughter 

facilities that operate overnight and 

suggested that APHIS develop a weekly 

reporting system for herds that have 

been depopulated so that the disease 

status of depopulated premises is made 

available to producers and 

veterinarians. This commenter further 

recommended that APHIS develop a 

final pseudorabies eradication program 

and encouraged APHIS to establish and 

fund a pseudorabies acute outbreak 

team that would be responsible for 

containing an outbreak and developing 

a clean-up program. 

The January 1999 interim rule 

established regulations to provide for 

the payment of indemnity by APHIS for 

the voluntary depopulation of herds of 

swine known to be infected with 

pseudorabies. Issues related to disease 

surveillance, vaccine program funding, 

slaughterhouse operations, reporting 

systems for herd depopulation, and 

future and final stage pseudorabies 

eradication efforts fall outside the scope 

of that rulemaking. Therefore, we are 

not making any changes to the rule 

based on these comments.

Finally, one commenter expressed 

support for APHIS’ payment of 

indemnity to producers for the 

voluntary depopulation of herds 

infected with pseudorabies and 

requested the continued availability of 

Federal funding for the pseudorabies 

indemnity program beyond the 6-month 

timeframe announced in the interim 

rule. 

In a notice published in the Federal 

Register on November 17, 1999 (64 FR 

62569–62570, Docket No. 98–123–5), we 

announced that additional funds had 

been allocated for the indemnity 

program and that the program would 

continue until funds are depleted or 

until further notice. In that notice, we 

acknowledged that some States were 

still conducting their eradication 

programs and that we considered it 

important to the pseudorabies 

eradication effort in the United States to 

continue the accelerated eradication 

program beyond the 6-month timeframe 

stated in the January 1999 interim rule. 

In a subsequent interim rule 

published on April 18, 2000 (65 FR 

20706–20712, Docket No. 98–123–6), we 

revised the method by which owners of 

swine will receive fair market value for 

their animals under the accelerated 

pseudorabies eradication program in 

order to extend the funds available to 

APHIS for the program before these 

funds are exhausted. That April 2000 

interim rule amended the regulations in 

part 52 to provide that APHIS will pay 

owners either the fair market value of 

herds of swine depopulated, or the 

difference between the net salvage value 

received for herds of swine disposed of 

through slaughter and the fair market 

value of those animals. The April 2000 

interim rule also allowed owners of 

breeding sows identified as being 

infected with pseudorabies to receive 

indemnity if those sows are sent directly 

to slaughter, even if the remainder of the 

herd the sow is part of is not 

depopulated. These amendments were 

intended to allow for the payment of 

indemnity from accelerated 

pseudorabies eradication program funds 

for a greater number of swine disposed 

of because they are infected with 

pseudorabies. 

We solicited comments concerning 

the April 2000 interim rule for 60 days 

ending June 19, 2000. We did not 

receive any comments on that interim 

rule. 

Therefore, for the reasons given in the 

interim rules and in this document, we 

are adopting the interim rules as a final 

rule without change. 

This action also affirms the 

information contained in the interim 

rules concerning Executive Order 12866 

and the Regulatory Flexibility Act, and 

Executive Order 12988. 

Further, this action has been 

determined to be not significant for the 

purposes of Executive Order 12866 and, 

therefore, has not been reviewed by the 

Office of Management and Budget. 

Executive Order 12372 

This program/activity is listed in the 

Catalog of Federal Domestic Assistance 

under No. 10.025 and is subject to 

Executive Order 12372, which requires 

intergovernmental consultation with 

State and local officials. (See 7 CFR part 

3015, subpart V.) 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995, (44 U.S.C. 3501 

et seq.), the information collection and 

recordkeeping requirements in the 

interim rules have been approved by the 

Office of Management and Budget 

(OMB). The assigned OMB control 

number is 0579–0137.

List of Subjects in 9 CFR Part 52 

Animal diseases, Indemnity 

Payments, Pseudorabies, Swine, 

Transportation.

PART 52—SWINE DESTROYED 

BECAUSE OF PSEUDORABIES

■ Accordingly, we are adopting as a final 

rule, without change, the interim rule 

establishing 9 CFR part 52 that was 

published at 64 FR 2545–2550 on 

January 15, 1999, as amended by the 

technical amendment published at 64 FR 

13064–13065 on March 17, 1999, and by 

the interim rule published at 65 FR 

20706–20712 on April 18, 2000.

Done in Washington, DC, this 5th day of 

October 2004 . 

Elizabeth E. Gaston, 

Acting Administrator, Animal and Plant 

Health Inspection Service.

[FR Doc. 04–22789 Filed 10–8–04; 8:45 am] 

BILLING CODE 3410–34–U

FEDERAL RESERVE SYSTEM

12 CFR Part 204 

[Regulation D; Docket No. R–1213] 

Reserve Requirements of Depository 

Institutions

AGENCY: Board of Governors of the 

Federal Reserve System.

ACTION: Final rule.

SUMMARY: The Board is amending 

Regulation D, Reserve Requirements of 

Depository Institutions, to reflect the 

annual indexing of the low reserve 

tranche and of the reserve requirement 

exemption amount for 2005. The Board 

is also announcing the annual indexing 

of the nonexempt deposit cutoff level 

and the reduced reporting limit that will 

be effective beginning in September 

2005. The Regulation D amendments 

increase the amount of net transaction 

accounts at each depository institution 

that is subject to a three percent reserve 

requirement in 2005 from $45.4 million 

to $47.6 million. This amount is known 

as the low reserve tranche. The 

Regulation D amendments also increase 

the amount of total reservable liabilities 

of each depository institution that is 

subject to a zero percent reserve 

requirement in 2005 from $6.6 million 

to $7.0 million. This amount is known 

as the reserve requirement exemption 

amount. The adjustments to both of 

these amounts are derived using 

statutory formulas specified in the 

Federal Reserve Act. 

The Board is also announcing 

increases in two other amounts, the 

nonexempt deposit cutoff level and the 

reduced reporting limit, that are used to 

determine the frequency with which 

depository institutions must submit 

deposit reports. The nonexempt deposit 

cutoff level is being increased from 

$161.2 million in 2004 to $169.8 million 

in 2005, and the reduced reporting limit 

is being increased from $1.074 billion in 

2004 to $1.131 billion in 2005. These 

amounts are indexed annually in order 

to reduce reporting burden for smaller

60544 Federal Register / Vol. 69, No. 196 / Tuesday, October 12, 2004 / Rules and Regulations 

1Consistent with Board practice, the low reserve 

tranche and reserve requirement exemption 

amounts have been rounded to the nearest $0.1 

million.

depository institutions. Thus, beginning 

in September 2005, depository 

institutions will be required to file the 

FR 2900 report each week under the 

following conditions: If they have net 

transaction accounts over $7.0 million 

and have total deposits of at least $169.8 

million; or if they have net transaction 

accounts of $7.0 million or less but have 

total deposits of at least $1.131 billion. 

Depository institutions will be required 

to file the FR 2900 report each quarter 

if they have net transaction accounts 

over $7.0 million but have total deposits 

of less than $169.8 million. Depository 

institutions will be required to file the 

FR 2910a report annually if they have 

net transaction accounts of $7.0 million 

or less but have total deposits greater 

than $7.0 million but less than $1.131 

billion. Depository institutions with 

$7.0 million or less in total deposits are 

not required to file a deposit report.

DATES: Effective date: November 12, 

2004. 

Compliance dates: For depository 

institutions that report weekly, the 

adjusted low reserve tranche and 

reserve requirement exemption amount 

will apply to the fourteen-day reserve 

computation period that begins 

Tuesday, November 23, 2004, and the 

corresponding fourteen-day reserve 

maintenance period that begins 

Thursday, December 23, 2004. For 

depository institutions that report 

quarterly, the adjusted low reserve 

tranche and reserve requirement 

exemption amount will apply to the 

seven-day reserve computation period 

that begins Tuesday, December 21, 

2004, and the corresponding seven-day 

reserve maintenance period that begins 

Thursday, January 20, 2005. For all 

depository institutions, the nonexempt 

deposit cutoff level, the reserve 

requirement exemption amount, and the 

reduced reporting limit will be used for 

2005 deposit report screening to 

determine reporting frequency for the 

twelve-month period that begins in 

September 2005.

FOR FURTHER INFORMATION CONTACT:

Heatherun Allison, Senior Counsel 

(202/452–3565), Legal Division, or 

Gretchen Weinbach, Senior Economist 

(202/452–2841), Division of Monetary 

Affairs; for user of Telecommunications 

Device for the Deaf (TDD) only, contact 

(202/263–4869); Board of Governors of 

the Federal Reserve System, 20th and C 

Streets, NW., Washington, DC 20551.

SUPPLEMENTARY INFORMATION: Section 

19(b)(2) of the Federal Reserve Act (12 

U.S.C. 461(b)(2)) requires each 

depository institution to maintain 

reserves against its transaction accounts 

and nonpersonal time deposits, as 

prescribed by Board regulations, for the 

purpose of implementing monetary 

policy. Section 11(a)(2) of the Federal 

Reserve Act (12 U.S.C. 248(a)(2)) 

authorizes the Board to require reports 

of liabilities and assets from depository 

institutions to enable the Board to 

conduct monetary policy. The Board’s 

actions with respect to each of these 

provisions are discussed in turn below. 

1. Reserve Requirements 

Pursuant to section 19(b)(2) of the 

Federal Reserve Act, transaction 

account balances maintained at each 

depository institution up to a certain 

amount, known as the low reserve 

tranche, are subject to a three percent 

reserve requirement. Net transaction 

account balances over the low reserve 

tranche are subject to a ten percent 

reserve requirement. Section 19(b)(2) 

also provides that, before December 31 

of each year, the Board shall issue a 

regulation adjusting the low reserve 

tranche for the next calendar year. The 

adjustment in the low reserve tranche is 

to be 80 percent of the percentage 

increase or decrease in net transaction 

accounts at all depository institutions 

over the one-year period that ends on 

the June 30 prior to the adjustment.

Currently, the low reserve tranche is 

$45.4 million. Net transaction accounts 

of all depository institutions rose 6.0 

percent (from $654.4 billion to $693.8 

billion) between June 30, 2003 and June 

30, 2004. Accordingly, the Board is 

amending Regulation D (12 CFR part 

204) to increase the low reserve tranche 

for net transaction accounts by $2.2 

million, from $45.4 million in 2004 to 

$47.6 million in 2005. 

Section 19(b)(11)(A) of the Federal 

Reserve Act (12 U.S.C. 461(b)(11)(A)) 

provides that a zero percent reserve 

requirement shall apply at each 

depository institution to total reservable 

liabilities that do not exceed a certain 

amount, known as the reserve 

requirement exemption amount. 

Section 19(b)(11)(B) provides that, 

before December 31 of each year, the 

Board shall issue a regulation adjusting 

the reserve requirement exemption 

amount for the next calendar year if 

total reservable liabilities held at all 

depository institutions increase from 

one year to the next. Unlike the low 

reserve tranche, which can be adjusted 

upward or downward, no adjustment is 

made to the reserve requirement 

exemption amount if total reservable 

liabilities held at all depository 

institutions should decrease during the 

applicable time period. The percentage 

increase in the reserve requirement 

exemption amount is to be 80 percent of 

the increase in total reservable liabilities 

at all depository institutions over the 

one-year period that ends on the June 30 

prior to the adjustment. 

Total reservable liabilities of all 

depository institutions increased by 7.1 

percent (from $2,786.0 billion to 

$2,983.8 billion) between June 30, 2003, 

and June 30, 2004. Accordingly, the 

Board is amending Regulation D to 

increase the reserve requirement 

exemption amount by $0.4 million, from 

$6.6 million in 2004 to $7.0 million in 

2005.1

For depository institutions that report 

weekly, the adjusted low reserve 

tranche and reserve requirement 

exemption amount will be effective for 

the fourteen-day reserve computation 

period beginning Tuesday, November 

23, 2004, and for the corresponding 

fourteen-day reserve maintenance 

period beginning Thursday, December 

23, 2004. For depository institutions 

that report quarterly, the adjusted low 

reserve tranche and reserve requirement 

exemption amount will be effective for 

the seven-day reserve computation 

period beginning Tuesday, December 

21, 2004, and for the corresponding 

seven-day reserve maintenance period 

beginning Thursday, January 20, 2005. 

2. Deposit Reports

Section 11(b)(2) of the Federal 

Reserve Act authorizes the Board to 

require depository institutions to file 

reports of their liabilities and assets as 

the Board may determine to be 

necessary or desirable to enable it to 

discharge its responsibility to monitor 

and control the monetary and credit 

aggregates. The Board screens 

depository institutions each year to 

determine whether they must file 

deposit reports and, if so, how 

frequently they must file them (weekly, 

quarterly, or annually). These deposit 

reporting assignments become effective 

each September. 

The screening of depository 

institutions for assignment to one of the 

four deposit reporting categories is 

based on three amounts: the reserve 

requirement exemption amount, the 

nonexempt deposit cutoff level, and the 

reduced reporting limit. The annual 

adjustment to the first amount, the 

reserve requirement exemption amount, 

is described in Section 1 above. The 

other two amounts, the nonexempt 

deposit cutoff level and the reduced 

reporting limit, are also adjusted 

annually, by an amount equal to 80 

percent of the increase, if any, in total

Federal Register / Vol. 69, No. 196 / Tuesday, October 12, 2004 / Rules and Regulations 60545

2Consistent with Board practice, the nonexempt 

deposit cutoff level has been rounded to the nearest 

$0.1 million, while the reduced reporting limit has 

been rounded to the nearest $1 million.

deposits at all depository institutions 

over the one-year period that ends on 

the June 30 prior to the adjustment. 

Total deposits at all depository 

institutions increased by 6.7 percent 

(from $6,534.2 billion to $6,969.8 

billion) between June 30, 2003 and June 

30, 2004. Accordingly, the Board is 

adjusting the nonexempt deposit cutoff 

level upward by $8.6 million, from its 

current level of $161.2 million in 2004 

to $169.8 million in 2005. The Board is 

also adjusting the reduced reporting 

limit upward by $57 million, from its 

current level of $1.074 billion in 2004 

to $1.131 billion in 2005.2

Beginning in September 2005, the 

boundaries of the four deposit reporting 

categories will be defined as follows. 

Those depository institutions with net 

transaction accounts over $7.0 million 

(the reserve requirement exemption 

amount) or total deposits greater than or 

equal to $1.131 billion (the reduced 

reporting limit) are subject to detailed 

reporting, and must file an FR 2900 

report either weekly or quarterly. Of this 

group, those with total deposits greater 

than or equal to $169.8 million (the 

nonexempt deposit cutoff level) are 

required to file the FR 2900 report each 

week, while those with total deposits 

less than $169.8 million are required to 

file the FR 2900 report each quarter. 

Those depository institutions with net 

transaction accounts less than or equal 

to $7.0 million (the reserve requirement 

exemption amount) and with total 

deposits less than $1.131 billion (the 

reduced reporting limit) are eligible for 

reduced reporting, and must either file 

a deposit report annually or not at all. 

Of this group, those with total deposits 

greater than $7.0 million (but less than 

$1.131 billion) are required to file the 

FR 2910a report annually, while those 

with total deposits less than or equal to 

$7.0 million are not required to file a 

deposit report. A depository institution 

that manipulates its reporting, however, 

in an attempt to qualify for less frequent 

reporting or to reduce its reserve 

requirement may be required to report 

the FR 2900 on a weekly basis and 

maintain appropriate reserve balances 

with its Reserve Bank, regardless of its 

most recent panel assignment. 

Notice and Regulatory Flexibility Act. 

The provisions of 5 U.S.C. 553(b) 

relating to notice of proposed 

rulemaking have not been followed in 

connection with the adoption of these 

amendments. The amendments involve 

expected, ministerial adjustments 

prescribed by statute and by the Board’s 

policy concerning reporting practices. 

The increases in the reserve requirement 

exemption amount, the low reserve 

tranche, the nonexempt deposit cutoff 

level, and the reduced reporting limit 

serve to reduce regulatory burdens on 

depository institutions. Accordingly, the 

Board finds good cause for determining, 

and so determines, that notice in 

accordance with 5 U.S.C. 553(b) is 

unnecessary. Consequently, the 

provisions of the Regulatory Flexibility 

Act, 5 U.S.C. 601, do not apply to these 

amendments.

List of Subjects in 12 CFR Part 204 

Banks, banking, Reporting and 

recordkeeping requirements.

■ For the reasons set forth in the 

preamble, the Board is amending 12 CFR 

part 204 as follows:

PART 204—RESERVE 

REQUIREMENTS OF DEPOSITORY 

INSTITUTIONS (REGULATION D)

■ 1. The authority citation for part 204 

continues to read as follows:

Authority: 12 U.S.C. 248(a), 248(c), 371a, 

461, 601, 611, and 3105.

■ 2. Section 204.9 is revised to read as 

follows:

§ 204.9 Reserve requirement ratios. 

The following reserve requirement 

ratios are prescribed for all depository 

institutions, banking Edge and 

agreement corporations, and United 

States branches and agencies of foreign 

banks:

Category Reserve requirement 

Net transaction accounts: 

$0 to $7.0 million ............................................................................... 0 percent of amount. 

Over $7.0 million and up to $47.6 million ......................................... 3 percent of amount. 

Over $47.6 million .............................................................................. $1,218,000 plus 10 percent of amount over $47.6 million. 

Nonpersonal time deposits ....................................................................... 0 percent. 

Eurocurrency liabilities .............................................................................. 0 percent. 

By order of the Board of Governors of the 

Federal Reserve System.

October 5, 2004. 

Jennifer J. Johnson, 

Secretary of the Board.

[FR Doc. 04–22772 Filed 10–8–04; 8:45 a.m.] 

BILLING CODE 6210–01–P

DEPARTMENT OF COMMERCE

Bureau of Industry and Security 

15 CFR Parts 730, 734, 746, 770, 772 

and 774 

[Docket No. 040920270–4270–01] 

RIN 0694–AD13 

Nomenclature Change: References to 

Another Agency

AGENCY: Bureau of Industry and 

Security, Commerce.

ACTION: Final rule; Nomenclature 

change. 

SUMMARY: The Export Administration 

Regulations (EAR) are amended to 

update certain references to the U.S. 

State Department’s Directorate of 

Defense Trade Controls. The EAR 

contain references to this agency under 

its current name and under its former 

name, the Office of Defense Trade 

Controls. This amendment will remove 

the possibility that a member of the 

public might think that two different 

offices are being referenced.

DATES: Effective October 12, 2004.

ADDRESSES: Although this is a final rule, 

comments are welcome and should be 

addressed to Timothy Mooney, Office of 

Exporter Services, Bureau of Industry 

and Security, Department of Commerce, 

P.O. Box 273, Washington, DC 20044, Emailed to: tmooney@bis.doc.gov, or 

faxed to 202–482–3355.