Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Rules and Regulations 75859

(1) Adjusted risk-weighted assets. Calcuate

adjusted risk-weighted assets, which equals

risk-weighted assets (as determined in

accordance with appendix A of this part),

excluding the risk-weighted amounts of all

covered positions (except foreign exchange

positions outside the trading account and

over-the counter derivative positions) 7 and

receivables arising from the posting of cash

collateral that is associated with securities

borrowing transactions to the extent the

receivables are collateralized by the market

value of the borrowed securities, provided

that the following conditions are met:

(i) The transaction is based on securities

includable in the trading book that are liquid

and readily marketable,

(ii) The transaction is marked to market

daily,

(iii) The transaction is subject to daily

margin maintenance requirements,

(iv) The transaction is a securities contract

for the purposes of section 555 of the

Bankruptcy Code (11 U.S.C. 555), a qualified

financial contract for the purposes of section

11(e)(8) of the Federal Deposit Insurance Act

(12 U.S.C. 1821(e)(8)), or a netting contract

between or among financial institutions for

the purposes of sections 401–407 of the

Federal Deposit Insurance Corporation

Improvement Act of 1991 (12 U.S.C. 4401–

4407), or the Board’s Regulation EE (12 CFR

part 231).

* * * * * 7Foreign exchange positions outside the

trading account and all over-the-counter

derivative positions, whether or not in the

trading account, must be included in the

adjusted risk weighted assets asdetermined

in appendix A of this part.

* * * * *

PART 225—BANK HOLDING

COMPANIES AND CHANGE IN BANK

CONTROL (REGULATION Y)

1. The authority citation for part 225

continues to read as follows:

Authority: 12 U.S.C. 1817(j)(13), 1818,

1828(o), 1831i, 1831p–1, 1843(c), 1844(b),

1972(1), 3106, 3108, 3310, 3331–3351, 3907.

and 3909; 15 U.S.C. 6801 and 6805.

2. In appendix E to part 225, under

section 3, paragraph (a)(1) is revised to

read as follows:

Appendix E to Part 225—Capital

Adequacy Guidelines for Bank Holding

Companies; Market Risk Measure

* * * * *

Section 3. Adjustments to the Risk-Based

Capital Ratio Calculations

(a) * * *

(1) Adjusted risk-weighted assets. Calculate

adjusted risk-weighted assets, which equals

risk-weighted assets (as determined in

accordance with appendix A of this part),

excluding the risk-weighted amounts of all

covered positions (except foreign exchange

positions outside the trading account and

over-the-counter derivative positions) 7 and

receivables arising from the posting of cash

collateral that is associated with securities

borrowing transactions to the extent the

receivables are collateralized by the market

value of the borrowed securities, provided

that the following conditions are met:

(i) The transaction is based on securities

includable in the trading book that are liquid

and readily marketable,

(ii) The transaction is marked to market

daily,

(iii) The transaction is subject to daily

margin maintenance requirements,

(iv) The transaction is a securities contract

for the purposes of section 555 of the

Bankruptcy Code (11 U.S.C. 555), a qualified

financial contract for the purposes of section

11(e)(8) of the Federal Deposit Insurance Act

(12 U.S.C. 1821(e)(8)), or a netting contract

between or among financial institutions for

the purposes of sections 401–407 of the

Federal Deposit Insurance Corporation

Improvement Act of 1991 (12 U.S.C. 4401–

4407), or the Board’s Regulation EE (12 CFR

Part 231).

* * * * * 7Foreign exchange positions outside the

trading account and all over-the-counter

derivative positions, whether or not in the

trading account, must be included in the

adjusted risk weighted assets as determined

in appendix A of this part.

By order of the Board of Governors of the

Federal Reserve System, November 24, 2000.

Jennifer J. Johnson,

Secretary of the Board.

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

For the reasons set forth in the joint

preamble, part 325 of chapter III of title

12 of the Code of Federal Regulations is

amended as follows:

PART 325—CAPITAL MAINTENANCE

1. The authority citation for part 325

continues to read as follows:

Authority: 12 U.S.C. 1815(a), 1815(b),

1816, 1818(a), 1818(b), 1818(c), 1818(t),

1819(Tenth), 1828(c), 1828(d), 1828(i),

1828(n), 1828(o), 1831o, 1835, 3907, 3909,

4808; Pub. L. 102–233, 105 Stat. 1761, 1789,

1790 (12 U.S.C. 1831n note); Pub. L. 102–

242, 105 Stat. 2236, 2355, 2386 (12 U.S.C.

1828 note).

2. In appendix C to part 325, under

section 3, paragraph (a)(1) is revised to

read as follows:

Appendix C to Part 325—Risk-Based

Capital for State Non-Member Banks:

Market Risk

* * * * *

Section 3. Adjustments to the Risk-Based

Capital Ratio Calculations

(a) * * *

* * * * *

(1) Adjusted risk-weighted assets. Calculate

adjusted risk-weighted assets, which equals

risk-weighted assets (as determined in

accordance with appendix A of this part),

excluding the risk-weighted amounts of all

covered positions (except foreign exchange

positions outside the trading account and

over-the-counter derivative positions) 7 and

receivables arising from the posting of cash

collateral that is associated with securities

borrowing transactions to the extent the

receivables are collateralized by the market

value of the borrowed securities, provided

that the following conditions are met:

(i) The transaction is based on securities

includable in the trading book that are liquid

and readily marketable,

(ii) The transaction is marked to market

daily,

(iii) The transaction is subject to daily

margin maintenance requirements,

(iv) The transaction is a securities contract

for the purposes of section 555 of the

Bankruptcy Code (11 U.S.C. 555), a qualified

financial contract for the purposes of section

11(e)(8) of the Federal Deposit Insurance Act

(12 U.S.C. 1821(e)(8)), or a netting contract

between or among financial institutions for

the purposes of sections 401–407 of the

Federal Deposit Insurance Corporation

Improvement Act of 1991 (12 U.S.C. 4401–

4407), or the Board’s Regulation EE (12 CFR

Part 231).

* * * * * 7Foreign exchange positions outside the

trading account and all over-the-counter

derivative positions, whether or not in the

trading account, must be included in the

adjusted risk weighted assets as determined

in appendix A of this part.

Dated at Washington, DC, this 21st day of

November, 2000.

By order of the Board of Directors.

Federal Deposit Insurance Corporation.

James D. LaPierre,

Deputy Executive Secretary.

[FR Doc. 00–30748 Filed 12–4–00; 8:45 am]

BILLING CODE 4810–33–P 6210–01–P 6714–01–P

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the

Currency

12 CFR Part 8

[Docket No. 00–31]

RIN 1557–AB72

Assessment of Fees; National Banks;

District of Columbia Banks

AGENCY: Office of the Comptroller of the

Currency, Treasury.

ACTION: Final rule.

SUMMARY: The Office of the Comptroller

of the Currency (OCC) is amending the

assessment formula it uses to assess

independent trust banks. A trust bank is

considered independent for purposes of

this regulation if it specializes in trust

activities and is not affiliated with a

75860 Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Rules and Regulations

1A ‘‘lead bank’’ is the largest national bank

controlled by a company, based on a comparison of

the total assets held by each national bank

controlled by that company as reported in each

bank’s most recent Consolidated Report of

Condition (Including Domestic and Foreign

Subsidiaries) (Call Report). 12 CFR 8.2(a)(6)(ii)(A).

full-service national bank. Under the

revised rate structure, all independent

trust banks will be assessed based on

balance sheet assets plus a minimum fee

as provided by the OCC in the annual

Notice of Comptroller of the Currency

Fees (Notice of Fees). Independent trust

banks with assets under management in

excess of $1 billion would pay an

additional amount based on a declining

marginal rate, which also will be

provided in the Notice of Fees.

EFFECTIVE DATE: December 31, 2000.

FOR FURTHER INFORMATION CONTACT:

Mitchell E. Plave, Senior Attorney,

Legislative and Regulatory Activities

Division, (202) 874–5090; or Karen

McCluskey, National Bank Examiner,

Asset Management Division, (202) 874–

7276.

SUPPLEMENTARY INFORMATION:

Background

The OCC charters, regulates, and

supervises approximately 2300 national

banks and 58 Federal branches and

agencies of foreign banks in the United

States, accounting for nearly 60 percent

of the nation’s banking assets. Its

mission is to ensure a safe, sound, and

competitive national banking system

that supports the citizens, communities,

and economy of the United States.

The OCC funds the activities it

undertakes to carry out this mission

through assessments on national banks

and Federal branches and agencies of

foreign banks. The National Bank Act

authorizes the OCC to collect these

assessments, stating, in relevant part:

The Comptroller of the Currency may

impose and collects assessments, fees, or

other charges as necessary or appropriate to

carry out the responsibilities of the office of

the Comptroller. Such assessments, fees, and

other charges shall be set to meet the

Comptroller’s expenses in carrying out

authorized activities.

12 U.S.C. 482 (Supp. 2000).

This provision authorizes the OCC to

adjust its assessment formula so that

banks, or categories of banks, pay an

assessment that appropriately

apportions to them the OCC’s overall

expenses of carrying out the agency’s

activities. Therefore the OCC currently

assesses national banks and Federal

branches and agencies according to a

formula based on several factors,

including a bank’s size, condition, and

whether it is the ‘‘lead’’ bank or ‘‘nonlead’’ bank among national banks in a

holding company.1 The OCC also has

reserved in its assessment regulation (12

CFR part 8) the authority to assess a fee

for certain special examinations and

investigations and for examining the

fiduciary activities of national banks. 12

CFR 8.6(a). In recent years, however, the

OCC stopped separately charging

national banks for the expenses of

examining and supervising fiduciary

activities.

Since the OCC eliminated those

separate fees, the number, size, and

complexity of the activities of

independent trust banks have increased

and their balance sheet assets

increasingly do not reflect the ongoing

scope or complexity of their activity,

nor the extent of the OCC’s

responsibilities with respect to them.

For example, although trust assets

managed by a bank are not shown on

the bank’s balance sheet, the bank’s

fiduciary activities are subject to

extensive regulatory standards under 12

CFR part 9 as well as under state laws

that are made applicable to national

bank fiduciary activities by 12 U.S.C.

92a. The OCC evaluates the bank’s

adherence to those standards as part of

our examination, supervision, and

regulation of the bank.

On March 21, 2000, we published a

notice of proposed rulemaking in the

Federal Register (65 FR 15111) to

amend the OCC’s assessment regulation

to revise the formula for independent

trust banks. The purpose of the proposal

was to adjust the OCC’s assessment

structure to better reflect the full extent

of the OCC’s activities in the

examination, supervision, and

regulation of those banks. For the

reasons discussed below, we are

adopting the rule as proposed with

changes to clarify the definition of

‘‘affiliated’’ and to address situations in

which a large trust bank becomes

affiliated with a small full-service

national bank. We also have updated

our anticipated flat minimum fee and

rate schedules applicable to managed

assets to reflect more recent data

concerning the OCC’s activities, as

discussed more fully below.

Proposed Rule and Comments Received

We proposed to amend 12 CFR 8.6 to

give the OCC the flexibility to increase

assessments on independent trust banks

by applying either a managed assets

component or a flat fee, depending on

the amount of assets a particular bank

has under management. Under the

proposed rule, the managed assets

component and flat fee were assessed on

independent trust banks in addition to

the assessment calculated on book

assets under 12 CFR 8.2.

The OCC received 18 comments on

the proposal. The comments included

16 from trust banks and 2 from bank

trade associations. While many of the

commenters objected to paying

increased assessments, the commenters

also recognized that the OCC must

recover its expenses through

assessments. Several commenters

recommended specific changes to the

proposal or asked for clarifications. The

following is a more detailed discussion

of the issues raised by the proposal, the

comments we received concerning those

issues, and the OCC’s responses to the

comments.

Scope of the rule. The proposal did

not include additional assessments for

full-service national banks or trust

banks that are affiliated with a fullservice national bank. Four commenters

suggested that we apply the proposal to

all trust banks, not only those affiliated

with a full-service national bank.

In the case of a full-service national

bank that exercises trust powers,

however, since the bank also conducts

substantial non-fiduciary activities, the

balance sheet assets approach of the

general assessment schedule continues

to be a fair yardstick for determining the

bank’s assessments. Similarly, when a

full-service bank opts as a matter of

corporate form to use a separate charter

to conduct its trust business, the OCC is

able to supervise, examine, and regulate

those activities on a coordinated basis

with its activities with respect to the

affiliated full-service bank. Thus, in this

situation, since the activities of the two

charters will be evaluated in

combination, the balance sheet assets

approach for determining assessments

continues to be a fair basis of

measurement.

Independent trust banks that are not

affiliated with a full-service national

bank present a distinguishable situation

because their balance sheet assets do not

constitute a fair yardstick of the

complexity of their operations or the

extent of the OCC’s activities related to

their operations. Therefore, except as

noted below in the discussion of the test

for affiliation, the OCC has decided to

confine the scope of the rule to

independent trust banks.

Test for affiliation. The proposal

defined an ‘‘independent trust bank’’ as

a national bank that ‘‘has trust powers,

does not primarily offer full-service

banking, and is not affiliated with a full

service national bank’’ (emphasis

Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Rules and Regulations 75861

2See Charters, Corporate Manual, Office of the

Comptroller of the Currency at 19–20 (1998)

(describing trust banks).

added). 2 It did not, however, define

‘‘affiliated.’’ Two commenters asked that

we clarify the meaning of the term

‘‘affiliated.’’

The final rule states that a trust bank

is ‘‘affiliated’’ with another entity for

assessment purposes if it meets the

criteria for affiliation found in the OCC’s

trust regulation (12 CFR part 9), which

incorporates the definition of ‘‘affiliate’’

found in section 2 of the Banking Act of

1933, 12 U.S.C. 221a(b). Generally

speaking, a trust bank is deemed

‘‘affiliated’’ with a full-service national

bank under that section if the fullservice bank owns more than 50% of the

voting stock of the trust bank or controls

the election of a majority of the trust

bank’s directors, or if the trust bank is

controlled by shareholders that own at

least 50% of the full-service bank or

control the election of a majority of the

full-service bank’s directors. Given that

this is the test already used in the OCC’s

trust regulation, affected institutions

should be familiar with its application.

The final rule also adds a provision,

in new § 8.6(c)(2), to address situations

in which an independent trust bank

affiliates with a comparatively small

full-service national bank for the

purpose of evading the assessment

regulation. The final rule preserves the

authority of the OCC in those instances

to assess a trust bank that is affiliated

with a full-service national bank as if

the trust bank were independent. This

change is consistent with one of the

underlying premises of the rulemaking,

namely, that assessments paid by fullservice national banks that are affiliated

with trust banks are adequate to meet

the OCC’s expenses in carrying out our

authorized activities.

Distinguishing discretionary from

non-discretionary assets. Under the

proposal, independent trust banks with

assets under management in excess of

$1 billion would pay a managed assets

component that would be calculated by

multiplying the amount of assets under

management by a factor to be supplied

by the OCC in the annual Notice of Fees

pursuant to 12 CFR 8.8. ‘‘Assets under

management’’ are those assets reported

by national banks on Schedule A, Line

18 of the Annual Report of Trust Assets

(FFIEC Form 001).

The proposal asked for comment on

whether we should distinguish for

assessment purposes between assets

over which the bank has investment

discretion (discretionary assets) and

those that it holds without discretion

(non-discretionary assets), for example

in a custodial capacity. Two

commenters stated that they can

differentiate such assets and that the

OCC should make that distinction. A

third commenter, a large independent

trust bank with a considerable amount

of assets under management, rejected

the assumption underlying the question.

This commenter disagreed with the

implication that it takes more time or

resources to supervise discretionary

assets and rejected the concept of

making the distinction.

After considering these views, we

have concluded that making this

distinction between discretionary and

non-discretionary assets is

inappropriate because it is inconsistent

with the way the OCC examines trust

banks. The OCC examines trust banks

based on lines of business and areas of

risk rather than on the discretionary/

non-discretionary asset distinction.

Making the distinction between

discretionary and non-discretionary

assets for assessment purposes would

not reflect this risk-focused examination

approach. One additional basis for

rejecting the distinction is that,

depending on the nature of the product

or services, it can be difficult for trust

banks to fit assets neatly in one category

or the other. Indeed, there is a large

‘‘gray’’ area in making this distinction,

which supports a risk-focused

supervisory approach rather than one

based on the label applied to the assets.

Basis for the flat fee and managed

asset rates. The proposal stated the flat

fee and managed asset rate tiers were

being proposed to better align the OCC’s

assessment structure with the OCC’s

responsibilities regarding independent

trust banks. One commenter opined that

the ‘‘assets under management’’

approach fails to take into account

economies of scale or relative risks of

off-balance sheet activities or the OCC’s

ratings of individual banks.

The OCC notes that the proposal does

reflect economies of scale. As is

explained further in the discussion of

the final rule, all independent trust

banks will pay a minimum flat fee. In

addition to the minimum flat fee,

independent trust banks with assets

under management in excess of $1

billion will be assessed according to a

declining marginal rate to reflect the

economies of scale noted by the

commenter. For institutions with $1

billion or less in assets under

management, we have identified no

additional economy of scale when

analyzing the expenses of supervising

these institutions. Accordingly, the final

rule retains the approach of assessing

these institutions by a minimum flat fee

that is set at a level consistent with the

OCC’s expenses.

Application of assessment to de novo

banks. The proposal did not distinguish

the assessment of de novo independent

trust banks from those already

established. Six commenters suggested

that the OCC assess ‘‘start-up’’

independent trust banks at a reduced

rate or phase in the fees over a few

years. These banks asserted that our

proposed flat fee will be burdensome for

them.

We believe that it would be

inappropriate to charge de novo

institutions less. While we recognize

that newly formed trust banks typically

will not be immediately profitable, they

nevertheless require considerable

supervisory attention as they set up

systems and procedures and learn the

compliance requirements. In addition,

de novo national trust banks are often

not new to trust business—they are

often formed when an institution

transfers its existing trust business into

a national bank charter. For these

reasons, the OCC believes that it is

appropriate to treat de novo trust banks

in the same manner as all other de novo

national banks are treated.

Billable hours. The proposed rule did

not include a billable hours component,

although it did invite comment on

whether the OCC should adopt a

billable hours approach to assessing

independent trust banks. Five

commenters were of the view that a

system of assessments for independent

trust banks with $1 billion or less in

managed assets based on billable hours

would be more ‘‘fair’’ than a flat fee,

because it would ensure that the

assessment was directly linked to the

amount of effort required of the OCC in

any given assessment period.

After a careful consideration of the

comments received, we have declined to

adopt a billable hours approach. Based

on experience gained previously with a

billable hours system, we have

concluded that such a system can have

an adverse impact on the examiner/

banker relationship. In addition, given

the variability in scheduling

examinations, a billable hours approach

could result in assessments that vary

from year to year for any given

institution, thereby making it difficult

for banks to anticipate expenses.

Final Rule

For the reasons discussed above, the

OCC adopts the rule as proposed, with

two changes. The first change, as

described previously, is to clarify the

meaning of ‘‘affiliate’’ for purposes of

the assessment rule. The second is to

address affiliations created for the

75862 Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Rules and Regulations

3This rate will yield $18,750 on a semi-annual

basis, which is the same as the minimum flat fee

for independent trust banks with $1 billion or less

in managed assets.

4The OCC is using this definition for the sole

purose of this preliminary regulatory flexibility

analysis after consulting with the Small Business

Administration’s Office of Advocacy. The OTS, in

its assessment regulation, also consulted with the

Office of Advocacy and defined ‘‘small savings

associations’’ as those with less than $100 million

in total assets, including off-balance sheet assets.

See Assessments and Fees, 63 FR 43642, 43646

(1998).

purpose of evading the assessment

regulation.

While the actual assessment rates will

be set in the Notice of Fees, we have

revised our projected fee schedule to

include an additional marginal rate.

Under the final rule, the OCC will assess

all independent trust banks a minimum

flat fee. Independent trust banks with

assets under management in excess of

$1 billion will pay an additional

amount, calculated by multiplying

assets under management by a declining

marginal rate. That calculation will

yield the managed assets component of

the assessment for these banks. In either

case, the trust bank will also be assessed

an amount based on its book assets.

In the proposal, we set out estimated

rates and fees that reflected the data we

had at the time. These rates and fees

have been adjusted in the final rule to

reflect more recent data. Using these

more recent data, we now anticipate

that a bank having assets under

management in excess of $1 billion

would, in the upcoming year, calculate

each of its semiannual assessments by

multiplying the first $1 billion in assets

under management by 0.00001875 3,

assets under management over $1

billion up to $10 billion by 0.00000375,

assets under management over $10

billion up to $100 billion by

0.000000625, and assets under

management over $100 billion by

.0000004. The product then would be

added to the assessment calculated

under section 8.2 that is based on book

assets.

For independent trust banks that have

$1 billion or less in trust assets, the OCC

will assess a flat fee that reflects the

minimum expenses of regulating and

supervising any independent trust bank,

regardless of size. We expect that the fee

due with each of the semiannual

assessments for the upcoming year will

be $18,750, in addition to the amount

calculated under the formula based on

balance sheet assets. The actual fees and

rates used to calculate assessments of

independent trust banks will be

published in the Notice of Fees. Future

rates and fees may be adjusted to reflect

the OCC’s latest expense data and the

appropriate allocation of those expenses

to national banks.

Regulatory Flexibility Act

An agency must prepare a Regulatory

Flexibility Analysis if a rule it proposes

will have a ‘‘significant economic

impact’’ on a ‘‘substantial number of

small entities.’’ 5 U.S.C. 603, 605. If,

after an analysis of a rule, an agency

determines that the rule is not expected

to have a significant economic impact

on a substantial number of small

entities, section 605(b) provides that the

head of the agency may so certify. The

OCC has reviewed the impact this final

rule will have on small independent

trust banks. Based on that review, the

OCC certifies that the final rule will not

have a significant economic impact on

a substantial number of small entities.

The basis for this conclusion is that the

rule will apply to a very small portion

of national banks. For purposes of this

Regulatory Flexibility Analysis and

regulation, the OCC defines ‘‘small

independent trust banks’’ to be those

banks with less than $100 million in

total assets, including managed assets.4

Using this definition, the final rule will

affect only seven small entities,

representing less than 1% of all national

banks. The OCC does not believe this to

be a substantial number of small

entities.

Executive Order 12866

The OCC has determined that this

final rule is not a significant regulatory

action under Executive Order 12866.

Unfunded Mandates Reform Act of

1995

Section 202 of the Unfunded

Mandates Reform Act of 1995, Public

Law 104–4 (2 U.S.C. 1532) (Unfunded

Mandates Act), requires that an agency

prepare a budgetary impact statement

before promulgating any rule likely to

result in 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. If a budgetary

impact statement is required, section

205 of the Unfunded Mandates Act also

requires an agency to identify and

consider a reasonable number of

regulatory alternatives before

promulgating a rule. The OCC has

determined that the final rule will not

result in expenditures by state, local,

and tribal governments, or by the

private sector, of $100 million or more

in any one year. Accordingly, this

rulemaking requires no further analysis

under the Unfunded Mandates Act.

List of Subjects in 12 CFR Part 8

National banks.

Authority and Issuance

For the reasons set forth in the

preamble, the OCC proposes to amend

part 8 of chapter I of title 12 of the Code

of Federal Regulations as follows:

PART 8—ASSESSMENT OF FEES;

NATIONAL BANKS; DISTRICT OF

COLUMBIA BANKS

1. The authority citation for Part 8

continues to read as follows:

Authority: 12 U.S.C. 93a, 481, 482, and

3102 and 3108; 15 U.S.C. 78c and 781; and

26 D.C. Code 102.

2. In § 8.6, the section heading is

revised and a new paragraph (c) is

added to read as follows:

§ 8.6 Fees and assessments for

examinations and investigations;

independent trust banks.

* * * * *

(c) Additional assessments on trust

banks. (1) Independent trust banks. The

assessment of independent trust banks

will include a managed asset

component, in addition to the

assessment calculated according to § 8.2

of this part, as follows:

(i) Minimum fee. All independent

trust banks will pay a minimum fee, to

be provided in the Notice of

Comptroller of the currency Fees.

(ii) Additional amount for

independent trust banks with managed

assets in excess of $1 billion.

Independent trust banks with managed

assets in excess of $1billion will pay an

amount that exceeds the minimum fee.

The amount to be paid will be

calculated by multiplying the amount of

trust assets under management by a rate

or rates provided by the OCC in the

Notice of Comptroller of the Currency

Fees.

(2) Trust banks affiliated with fullservice national banks. The OCC will

assess a trust bank in accordance with

paragraph (c)(1) of this section,

notwithstanding that the bank is

affiliated with a full-service national

bank, if the OCC concludes that the

affiliation is intended to evade the

assessment regulation.

(3) Definitions. For purposes of this

paragraph (c) of this section, the

following definitions apply:

(i) Affiliate has the same meaning as

this term has in 12 U.S.C. 221a(b);

(ii) Independent trust bank is a

national bank that has trust powers,

does not primarily offer full-service

banking, and is not affiliated with a fullservice national bank; and

Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Rules and Regulations 75863

(iii) Trust assets are those assets

reported on Schedule A, Line 18 of the

Annual Report of Trust Assets (FFIEC

Form 001). The form is available by mail

from the Office of the Comptroller of the

Currency, Asset Management Division,

250 E Street, SW., Washington, DC

20219.

Dated: October 20, 2000.

John D. Hawke, Jr.,

Comptroller of the Currency.

[FR Doc. 00–30843 Filed 12–4–00; 8:45 am]

BILLING CODE 4810–33–P

POSTAL SERVICE

39 CFR Part 111

Nonmailable Written, Printed, and

Graphic Matter

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: This final rule amends Part

C030 of the Domestic Mail Manual

(DMM) to provide for changes to the

standards concerning written, printed,

and graphic matter as a result of a recent

Department of Justice opinion

concerning lottery material.

EFFECTIVE DATE: December 14, 2000.

FOR FURTHER INFORMATION CONTACT:

Jerome M. Lease (703) 292–4184.

SUPPLEMENTARY INFORMATION: As the

result of an inquiry from the Postal

Service, the Department of Justice has

issued an opinion stating that the statute

prohibiting the mailing of truthful

advertising concerning lawful gambling

activity, whether state-run or private, is

no longer enforceable. The Attorney

General has notified Congress that it

will no longer enforce the criminal

lottery statute (18 U.S.C. Section 1302)

against gambling advertisement mailers,

so long as the activity advertised is legal

and the mailing does not provide any

entry materials.

The Attorney General’s opinion is

based upon a decision of the Supreme

Court issued in June 1999, which struck

down similar prohibitions against

truthful broadcast advertising for lawful

gambling activity.

Accordingly, the Domestic Mail

Manual (DMM) is revised to conform to

the Attorney General’s new guidance.

The changes mean that:

1. Mailers may now mail

advertisements for casinos and state-run

or private lotteries (so long as that

lottery is legal).

2. Newspapers and other publications

that are mailed may run advertisements

for lawful gambling activity without

risking their authorizations to mail at

periodicals rates.

3. The Postal Service may actively

solicit advertising mail from licensed

casinos and others lawfully conducting

gambling activity.

The following prohibitions will still

apply:

1. No mailing is acceptable if it

provides entry materials or

instrumentalities (lottery or raffle

tickets, for instance) through the mail.

2. Mailing gambling proceeds,

instrumentalities, or other means of

participation continue to violate the

criminal statute.

The changes announced in this

document are effective on December 14,

2000, and also will be published in

Postal Bulletin 22039 (12–14–00). These

revisions to the DMM will be included

in the printed version of DMM Issue 56,

scheduled for January 2001 (pending a

decision about the R2000–1 omnibus

rate case). These amendments are being

published without provision for public

comment because the changes are

required by law.

For the reasons discussed above, the

Postal Service hereby adopts the

following amendments to the Domestic

Mail Manual (DMM) which is

incorporated by reference in the Code of

Federal Regulations (see 39 CFR part

111).

List of Subjects in 39 CFR Part 111

Postal Service.

PART 111—[AMENDED]

1. The authority citation for 39 CFR

part 111 continues to read as follows:

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101,

401, 403, 404, 3001–3011, 3201–3219, 3403–

3406, 3621, 3626, 5001.

2. Revise part C030 of the DMM to

include the following revisions:

C CHARACTERISTICS AND

CONTENT

C000 General Information

* * * * *

C030 Nonmailable Written, Printed,

and Graphic Matter

* * * * *

C031 Written, Printed, and Graphic

Matter Generally

* * * * *

3.0 LOTTERY MATTER (18 USC 1302)

* * * * *

[Revise 3.2 to read as follows:]

3.2 Unlawful Mail Matter

Unlawful matter includes any letter,

newspaper, periodical, parcel, stamped

card or postcard, circular, or other

matter permitting or facilitating

participation in a lottery; any lottery

ticket or part thereof or substitute; and

any form of payment for a lottery ticket

or share.

3.3 Fishing Contests, Indian Gaming

Regulatory Act, Lotteries

[Remove item b. Redesignate items c

and d as b and c, respectively. Revise

newly redesignated item c to read as

follows:]

* * * * *

c. An advertisement, list of prizes, or

other information on a lottery not

prohibited by the state where it is

conducted.

* * * * *

An appropriate amendment to 39 CFR

part 111 to reflect these changes will be

published.

Stanley F. Mires,

Chief Counsel, Legislative.

[FR Doc. 00–30810 Filed 12–4–00; 8:45 am]

BILLING CODE 7710–12–U

ENVIRONMENTAL PROTECTION

AGENCY

48 CFR Parts 1504 and 1552

[FRL–6912–2]

Acquisition Regulation: Business

Ownership Representation

AGENCY: Environmental Protection

Agency.

ACTION: Final rule.

SUMMARY: The Environmental Protection

Agency (EPA) is amending the EPA

Acquisition Regulation (EPAAR) to add

a new clause that will provide the

Agency with information regarding its

contract awards. This new clause

requests the successful awardee of an

EPA contract to voluntarily identify the

specific racial/ethnic category that best

represents the ownership of its business.

The information provided by the clause

will not be used for the establishment of

a set-aside or quota. The information

will be used for general statistical

purposes or for the purpose of focusing

future outreach initiatives to those

businesses owned by racial/ethnic

groups who are unaware of EPA

contracting opportunities.

DATES: This rule is effective January 4,

2001.

FOR FURTHER INFORMATION CONTACT:

Leigh Pomponio, U.S. Environmental

Protection Agency, Office of Acquisition

Management (3802R), 1200

Pennsylvania Avenue, NW, Washington,

D.C. 20460, Telephone: (202) 564–4364.

SUPPLEMENTARY INFORMATION: