36782 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

Accordingly, the interim final rule

amending 7 CFR part 29 which was

published at 64 FR 67469 on December

2, 1999, is adopted as a final rule with

the following changes:

PART 29—TOBACCO INSPECTION

Subpart B—Permissive Inspection

1. The authority citation for 7 CFR

part 29, subpart B, continues to read as

follows:

Authority: 7 U.S.C. 511m and 511r.

2. Section 29.56 is amended by

revising the last sentence to read as

follows:

§ 29.56 Permissive inspection.

* * * Special tests and services may

be performed for interested persons to

the extent that available facilities will

permit, subject to the payment of fees as

provided in § 29.123.

3. In § 29.123, paragraph (e) is revised

to read as follows:

§ 29.123 Fees and charges.

* * * * *

(e) Fees for special tests and services

will be determined by agreement

between the Deputy Administrator,

Tobacco Programs, and the applicant or

applicants for service.

Dated: June 6, 2000.

Kathleen A. Merrigan,

Administrator, Agricultural Marketing

Service.

[FR Doc. 00–14730 Filed 6–9–00; 8:45 am]

BILLING CODE 3410–02–P

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 716

Privacy of Consumer Financial

Information

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Final rule.

SUMMARY: The NCUA Board is issuing a

final rule to amend the requirements for

privacy and opt out notice where there

is a joint relationship on a loan. The

amendment provides that a credit union

is required to provide a separate initial

notice and a separate opt out notice to

each borrower and guarantor only if the

credit union actually shares their

nonpublic personal information with

nonaffiliated third parties outside of one

of the permissible exceptions. This

amendment does not affect the right of

borrowers and guarantors to receive

notices if they are otherwise entitled to

receive them as members of the credit

union.

EFFECTIVE DATE: This rule is effective

November 13, 2000. However,

compliance is not required until July 1,

2001.

ADDRESSES: National Credit Union

Administration, 1775 Duke Street,

Alexandria, Virginia 22314–3428.

FOR FURTHER INFORMATION CONTACT:

Mary F. Rupp or Regina M. Metz, Staff

Attorneys, Division of Operations,

Office of General Counsel, at the above

address or telephone: (703) 518–6540.

SUPPLEMENTARY INFORMATION:

Background

On February 24, 2000, the NCUA

Board issued a proposed rule and, on

May 8, 2000, a final rule applicable to

all federally-insured credit unions, as

required by the Gramm-Leach-Bliley Act

(GLB Act). 65 FR 10988 (March 1, 2000)

and 65 FR 31722 (May 18, 2000). The

Board received 99 comments on its

proposal. The final rule required credit

unions to have a privacy policy and

provide certain disclosures and notices

to individuals about whom credit

unions collect nonpublic personal

information. In drafting the rule, the

NCUA participated as part of an

interagency group composed of

representatives from the NCUA, the

Federal Trade Commission, the Office of

Comptroller of the Currency, Board of

Governors of the Federal Reserve

System, Secretary of the Treasury, and

Securities and Exchange Commission

(collectively, the Agencies). The final

rule took into account the unique

circumstances of federally-insured

credit unions and their members but, as

required by the GLB Act, was consistent

and comparable with the regulations of

the other Agencies.

The other Agencies’ final regulations,

which were issued after the NCUA,

permit a financial institution to provide

a single initial notice and opt out notice

if two or more consumers jointly obtain

a financial product or service. Unlike

the other Agencies, NCUA’s rule

specifically excluded from the

provisions governing joint relationships,

the authority to provide only one notice

in the case of a loan. 65 FR at 31743,

31745. The Board’s rationale for the

exclusion was that ‘‘co-makers and

guarantors should receive the notice and

right to opt out because of the extent

and nature of nonpublic personal

information provided to the credit

union in conjunction with these types of

transactions.’’ 65 FR at 31728. Upon

further reflection, the Board is

persuaded by the 50 commenters that

objected to requiring separate notices for

all joint account holders. The

commenters noted that the

administrative and financial burden of

tracking down joint account holders is

substantial and that one notice is

consistent with other consumer loan

regulations. The Board believes that to

accomplish its goal of protecting

borrowers and guarantors from the

sharing of their nonpublic personal

information, notice to all borrowers and

guarantors is not necessary and has

amended its rule to require notices only

under limited circumstances. The Board

is amending the rule to provide that a

credit union must only provide separate

notices to individuals, other than the

primary borrower, if a credit union is

actually sharing nonpublic personal

information about them.

Final Amendment

Sections 716.4(f)(2) and 716.7(d)(6) of

this amendment only require a credit

union to provide a separate initial

notices and opt out notice to all

borrowers and guarantors if the credit

union shares their nonpublic personal

information with nonaffiliated third

parties other than for purposes

permitted under §§ 716.13, 716.14 and

716.15. In addition, no annual notices

are required.

This amendment does not affect the

notice requirements for existing

members in § 716.4(d) or the duty in

§§ 716.4, 716.5 and 716.7 to provide

initial, annual and opt out notices to coborrowers and guarantors who have a

member relationship with the credit

union, in addition to a co-borrower or

guarantor relationship. Finally, this

provision does not affect the right of a

co-borrower or guarantor to opt out as

permitted for other types of joint

relationships.

This provision is effective November

13, 2000, and compliance is mandatory

July 1, 2001. This means that, like the

recently passed final rule, all notices

required by this amendment must be

mailed by July 1, 2001. 65 FR at 31749.

The Board is issuing this rule as a

final rule because it decreases the

regulatory burden and there is a strong

public interest in having a final privacy

rule in place that allows federallyinsured credit unions ample time to

comply. Accordingly, and for good

cause, because the rule decreases the

regulatory burden, pursuant to 5 U.S.C.

553(b)(3)(B), notice and public

procedures are impracticable,

unnecessary, and contrary to the public

interest.

Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations 36783

Regulatory Procedures

A. Paperwork Reduction Act

The final rule does not impose any

additional paperwork requirements on

federally-insured credit unions.

B. Regulatory Flexibility Act

The Regulatory Flexibility Act (5

U.S.C. 601–612) requires, subject to

certain exceptions, that NCUA prepare

an initial regulatory flexibility analysis

(IRFA) with a proposed rule and a final

regulatory flexibility analysis (FRFA)

with a final rule, unless NCUA certifies

that the rule will not have a significant

economic impact on a substantial

number of small credit unions. For

purposes of the Regulatory Flexibility

Act, and in accordance with NCUA’s

authority under 5 U.S.C. 601(4), NCUA

has determined that small credit unions

are those with less than one million

dollars in assets. See 12 CFR 791.8(a).

NCUA’s final rule will apply to

approximately 1,626 small credit

unions, out of a total of approximately

10,627 federally-insured credit unions.

The NCUA Board has determined and

certifies that the final rule will not have

a significant economic impact on a

substantial number of small credit

union. The reason for this determination

is that the final rule decreases the

regulatory burden for all federallyinsured credit union. This will result in

reduced costs for all federally-insured

credit unions.

C. Executive Order 13132

Executive Order 13132 encourages

independent regulatory agencies to

consider the impact of their regulatory

actions on state and local interests. In

adherence to fundamental federalism

principles, NCUA, an independent

regulatory agency as defined in 44

U.S.C. 3502(5), voluntarily complies

with the executive order. This final rule

will apply to all federally-insured credit

unions, but it will not have substantial

direct effects on the states, on the

relationship between the national

government and the states, or on the

distribution of power and

responsibilities among the various

levels of government. Section 507 of the

GLB Act states that state law may

provide greater consumer protections

than this proposed rule. In that event,

federal law would not preempt state

law. NCUA has determined the final

rule does not constitute a policy that has

federalism implications for purposes of

the executive order.

D. Small Business Regulatory

Enforcement Fairness Act

The Small Business Regulatory

Enforcement Fairness Act of 1996 (Pub.

L. 104–121) provides generally for

congressional review of agency rules. A

reporting requirement is triggered in

instances where NCUA issues a final

rule as defined by Section 551 of the

Administrative Procedures Act. 5 U.S.C.

551. NCUA has recommended to The

Office of Management and Budget that

it determine that this is not a major rule,

and is awaiting its determination.

E. The Treasury and General

Government Appropriations Act, 1999—

Assessment of Federal Regulations and

Policies on Families

NCUA has determined that the final

rule will not affect family well-being

within the meaning of section 654 of the

Treasury and General Government

Appropriations Act, 1999, Public Law

105–277, 112 Stat. 2681 (1998).

Agency Regulatory Goal

NCUA’s goal is clear, understandable

regulations that impose minimal

regulatory burden. This rule reduces a

requirement for federally-insured credit

unions and so it meets the agency’s goal

of reducing regulatory burden.

List of Subjects 12 CFR Part 716

Consumer protection, Credit unions,

Privacy, Reporting and recordkeeping

requirements.

By the National Credit Union

Administration Board on June 5, 2000.

Becky Baker,

Secretary of the Board.

For the reasons set out in the

preamble, NCUA amends 12 CFR part

716 as follows:

PART 716—PRIVACY OF CONSUMER

FINANCIAL INFORMATION

1. The authority citation for part 716

continues to read as follows:

Authority: 15 U.S.C. 6801 et seq., 12 U.S.C.

1751 et seq.

2. Amend § 716.4 by redesignating

paragraph (f) as paragraph (f)(1) and

adding paragraphs (f)(2) to read as

follows:

§ 716.4 Initial privacy notice to consumers

required.

* * * * *

(f)(1) * * *

(2) Special rule for loans. (i) You are

required to provide an initial notice to

a borrower or guarantor on a loan if you

share his or her nonpublic personal

information with nonaffiliated third

parties other than for purposes under

§§ 716.13, 716.14 and 716.15. (ii) You

may satisfy the annual notice

requirements of § 716.5 by providing

one notice to those borrowers and

guarantors jointly.

* * * * *

3. Amend § 716.7 by adding

paragraphs (d)(6) to read as follows:

§ 716.7 Form of opt out notice to

consumers and opt out methods.

* * * * *

(d) * * *

(6) Special rule for loans. (i) You are

required to provide an initial opt out

notice to a borrower or guarantor on a

loan if you share his or her nonpublic

personal information with nonaffiliated

third parties other than for purposes

under §§ 716.13, 716.14 and 716.15.

(ii) You may satisfy your annual opt

out notice requirement by providing one

notice to those borrowers and

guarantors jointly.

* * * * *

[FR Doc. 00–14785 Filed 6–9–00; 8:45 am]

BILLING CODE 7535–01–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–ANE–45–AD; Amendment

39–11783; AD 2000–12–05]

RIN 2120–AA64

Airworthiness Directives; International

Aero Engines AG V2500–A1/–A5/–D5

Series Turbofan Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment supersedes

an existing airworthiness directive (AD),

applicable to International Aero Engines

AG (IAE) V2500–A1/–A5/–D5 series

turbofan engines, that requires revisions

to the Airworthiness Limitations

Section (ALS) and Maintenance

Scheduling Section (MSS) of the

Instructions for Continued

Airworthiness (ICA), located in the

Time Limits Manual (Chapter 05–10–00)

of the Engine Manuals, to include

required enhanced inspection of

selected critical life-limited parts at

each piece-part exposure. This action

would add additional critical lifelimited parts for enhanced inspection.

This action is prompted by additional

focused inspection procedures that have

been developed by the manufacturer.

The actions specified by this AD are

intended to prevent critical life-limited