Federal Register / Vol. 78, No. 227 / Monday, November 25, 2013 / Rules and Regulations 70193 

1Public Law 111–203 § 1100E, 124 Stat. 1376 

(2010). 

2 76 FR 18349 (Apr. 4, 2011). 

3 76 FR 78500 (Dec. 19, 2011). 

4Section 1029(a) of the Dodd-Frank Act states: 

‘‘Except as permitted in subsection (b), the Bureau 

may not exercise any rulemaking, supervisory, 

enforcement, or any other authority * * * over a 

motor vehicle dealer that is predominantly engaged 

in the sale and servicing of motor vehicles, the 

leasing and servicing of motor vehicles, or both.’’ 

12 U.S.C. 5519(a). Section 1029(b) of the DoddFrank Act states: ‘‘Subsection (a) shall not apply to 

any person, to the extent that such person (1) 

provides consumers with any services related to 

residential or commercial mortgages or selffinancing transactions involving real property; (2) 

operates a line of business (A) that involves the 

extension of retail credit or retail leases involving 

motor vehicles; and (B) in which (i) the extension 

of retail credit or retail leases are provided directly 

to consumers; and (ii) the contract governing such 

extension of retail credit or retail leases is not 

routinely assigned to an unaffiliated third party 

finance or leasing source; or (3) offers or provides 

a consumer financial product or service not 

involving or related to the sale, financing, leasing, 

rental, repair, refurbishment, maintenance, or other 

servicing of motor vehicles, motor vehicle parts, or 

any related or ancillary product or service.’’ 12 

U.S.C. 5519(b). 

relevant Federal rules that duplicate, 

overlap, or conflict with this rule. 

Further, the Committee’s meeting was 

widely publicized throughout the 

Colorado Area No. 2 potato industry and 

all interested persons were invited to 

attend the meeting and participate in 

Committee deliberations. Like all 

Committee meetings, the December 20, 

2012, meeting was a public meeting and 

all entities, both large and small, were 

able to express their views on this issue. 

Comments on the interim rule were 

required to be received on or before 

August 13, 2013. No comments were 

received. Therefore, for the reasons 

given in the interim rule, we are 

adopting the interim rule as a final rule, 

without change. 

To view the interim rule, go to: 

http://www.regulations.gov/

#!documentDetail;D=AMS-FV-13-0001- 

0001. 

This action also affirms information 

contained in the interim rule concerning 

Executive Orders 12866 and 12988, the 

Paperwork Reduction Act (44 U.S.C. 

Chapter 35), and the E-Gov Act (44 

U.S.C. 101). 

In accordance with section 8e of the 

Act, the United States Trade 

Representative has concurred with the 

issuance of this rule. 

After consideration of all relevant 

material presented, it is found that 

finalizing the interim rule, without 

change, as published in the Federal 

Register (78 FR 35743, June 14, 2013) 

will tend to effectuate the declared 

policy of the Act. 

List of Subjects in 7 CFR Part 948 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

Accordingly, the interim rule that 

amended 7 CFR part 948 and that was 

published at 78 FR 35743 on June 14, 

2013, is adopted as a final rule, without 

change. 

Dated: November 18, 2013 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2013–28067 Filed 11–22–13; 8:45 am] 

BILLING CODE 3410–02–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 213 

[Docket No. R–1469] 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1013 

[Docket No. CFPB–2013–0034] 

Consumer Leasing (Regulation M) 

AGENCY: Board of Governors of the 

Federal Reserve System (Board); and 

Bureau of Consumer Financial 

Protection (Bureau). 

ACTION: Final rules, official 

interpretations and commentary. 

SUMMARY: The Board and the Bureau are 

publishing final rules amending the 

official interpretations and commentary 

for the agencies’ regulations that 

implement the Consumer Leasing Act 

(CLA). The Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(Dodd-Frank Act) amended the CLA by 

requiring that the dollar threshold for 

exempt consumer leases be adjusted 

annually by any annual percentage 

increase in the Consumer Price Index 

for Urban Wage Earners and Clerical 

Workers (CPI–W). Based on the annual 

percentage increase in the CPI–W as of 

June 1, 2013, the Board and the Bureau 

are adjusting the exemption threshold to 

$53,500, effective January 1, 2014. 

Because the Dodd-Frank Act also 

requires similar adjustments in the 

Truth in Lending Act’s threshold for 

exempt consumer credit transactions, 

the Board and the Bureau are making 

similar amendments to each of their 

respective regulations implementing the 

Truth in Lending Act elsewhere in the 

Federal Register. 

DATES: This final rule is effective 

January 1, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Board: Vivian W. Wong, Counsel, 

Division of Consumer and Community 

Affairs, Board of Governors of the 

Federal Reserve System, at (202) 452– 

3667; for users of Telecommunications 

Device for the Deaf (TDD) only, contact 

(202) 263–4869. 

Bureau: David Friend, Counsel, Office 

of Regulations, Bureau of Consumer 

Financial Protection, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act of 2010 

(Dodd-Frank Act) increased the 

threshold in the Consumer Leasing Act 

(CLA) for exempt consumer leases from 

$25,000 to $50,000, effective July 21, 

2011.1 In addition, the Dodd-Frank Act 

requires that this threshold be adjusted 

annually for inflation by the annual 

percentage increase in the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers (CPI–W), as published 

by the Bureau of Labor Statistics. In 

April 2011, the Board issued a final rule 

amending Regulation M (which 

implements the CLA) consistent with 

these provisions of the Dodd-Frank 

Act.2

Title X of the Dodd-Frank Act 

transferred rulemaking authority for a 

number of consumer financial 

protection laws from the Board to the 

Bureau, effective July 21, 2011. In 

connection with this transfer of 

rulemaking authority, the Bureau issued 

its own Regulation M implementing the 

CLA in an interim final rule, 12 CFR 

part 1013 (Bureau Interim Final Rule).3

The Bureau Interim Final Rule 

substantially duplicated the Board’s 

Regulation M, including the revisions to 

the threshold for exempt transactions 

made by the Board in April 2011. 

Although the Bureau has the authority 

to issue rules to implement the CLA for 

most entities, the Board retains 

authority to issue rules under the CLA 

for certain motor vehicle dealers 

covered by section 1029(a) of the DoddFrank Act, and the Board’s Regulation 

M continues to apply to those entities.4

Section 213.2(e)(1) of the Board’s 

Regulation M and § 1013.2(e)(1) of the 

Bureau’s Regulation M, and their 

accompanying commentaries, provide 

that the exemption threshold will be 

adjusted annually effective January 1 of 


emcdonald on DSK67QTVN1PROD with RULES
70194 Federal Register / Vol. 78, No. 227 / Monday, November 25, 2013 / Rules and Regulations 

each year based on any annual 

percentage increase in the CPI–W that 

was in effect on the preceding June 1. 

Any increase in the threshold amount 

will be rounded to the nearest $100 

increment. For example, if the annual 

percentage increase in the CPI–W would 

result in a $950 increase in the 

threshold amount, the threshold amount 

will be increased by $1,000. However, if 

the annual percentage increase in the 

CPI–W would result in a $949 increase 

in the threshold amount, the threshold 

amount will be increased by $900. See 

comments 2(e)–9 in Supplements I of 12 

CFR part 213 and 12 CFR part 1013. 

II. Adjustment and Commentary 

Revision 

Effective January 1, 2014, the adjusted 

exemption threshold amount is $53,500. 

This adjustment is based on the CPI–W 

index in effect on June 1, 2013, which 

was reported on May 16, 2013. The 

Bureau of Labor Statistics publishes 

consumer-based indices monthly, but 

does not report a CPI change on June 1; 

adjustments are reported in the middle 

of the month. The CPI–W is a subset of 

the CPI–U index (based on all urban 

consumers) and represents 

approximately 28 percent of the U.S. 

population. The adjustment reflects a 

0.9 percent increase in the CPI–W from 

April 2012 to April 2013 and is rounded 

to the nearest $100 increment. 

Accordingly, the Board and the Bureau 

are revising the commentaries to their 

respective regulations to add new 

comment 2(e)–9.v stating that, from 

January 1, 2014 through December 31, 

2014, the threshold amount is $53,500. 

These revisions are effective January 1, 

2014. 

III. Administrative Law Matters 

Administrative Procedure Act 

Under the Administrative Procedure 

Act, notice and opportunity for public 

comment are not required if the Board 

and the Bureau find that notice and 

public comment are impracticable, 

unnecessary, or contrary to the public 

interest. 5 U.S.C. 553(b)(B). This annual 

adjustment is required by statute. The 

amendment in this notice is technical 

and non-discretionary, and it applies 

the method previously established in 

the agencies’ regulations for 

determining adjustments to the 

exemption threshold. For these reasons, 

the Board and the Bureau have 

determined that publishing a notice of 

proposed rulemaking and providing 

opportunity for public comment are 

unnecessary. Therefore, the 

amendments are adopted in final form. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required. 5 U.S.C. 603 and 604. 

As noted previously, the agencies have 

determined that it is unnecessary to 

publish a general notice of proposed 

rulemaking for this joint final rule. 

Accordingly, the RFA’s requirements 

relating to an initial and final regulatory 

flexibility analysis do not apply. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3506; 

5 CFR part 1320), the agencies reviewed 

this final rule. No collections of 

information pursuant to the Paperwork 

Reduction Act are contained in the final 

rule. 

List of Subjects 

12 CFR Part 213 

Advertising, Consumer leasing, 

Consumer protection, Federal Reserve 

System, Reporting and recordkeeping 

requirements. 

12 CFR Part 1013 

Advertising, Consumer leasing, 

Reporting and recordkeeping 

requirements. 

Board of Governors of the Federal 

Reserve System 

Text of Final Revisions 

For the reasons set forth in the 

preamble, the Board amends Regulation 

M, 12 CFR part 213, as set forth below: 

PART 213—CONSUMER LEASING 

(REGULATION M) 

■ 1. The authority citation for part 213 

continues to read as follows: 

Authority: 15 U.S.C. 1604 and 1667f; Pub. 

L. 111–203 § 1100E, 124 Stat. 1376. 

■ 2. In Supplement I to Part 213, under 

Section 213.2—Definitions, under 2(e) 

Consumer Lease, paragraph 9.v is added 

to read as follows: 

Supplement I to Part 213—Official Staff 

Interpretations 

* * * * * 

Section 213.2—Definitions 

* * * * * 

2(e) Consumer Lease. 

9. Threshold amount. * * * 

* * * * * 

v. From January 1, 2014 through December 

31, 2014, the threshold amount is $53,500. 

* * * * * 

Bureau of Consumer Financial 

Protection 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Bureau amends 

Regulation M, 12 CFR part 1013, as set 

forth below: 

PART 1013—CONSUMER LEASING 

(REGULATION M) 

■ 1. The authority citation for part 1013 

continues to read as follows: 

Authority: 15 U.S.C. 1604 and 1667f; Pub. 

L. No. 111–203 § 1100E, 124 Stat. 1376. 

■ 2. In Supplement I to part 1013, under 

Section 1013.2—Definitions, under 2(e) 

Consumer Lease, paragraph 9.v is added 

to read as follows: 

Supplement I to Part 1013—Official 

Interpretations 

* * * * * 

Section 1013.2—Definitions 

* * * * * 

2(e) Consumer Lease. 

9. Threshold amount. * * * 

* * * * * 

v. From January 1, 2014 through December 

31, 2014, the threshold amount is $53,500. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, November 19, 2013. 

Robert deV. Frierson, 

Secretary of the Board. 

Dated: November 17, 2013. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2013–28194 Filed 11–22–13; 8:45 am] 

BILLING CODE 6210–01–P; 4810–AM–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 226 

[Docket No. R–1470] 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

[Docket No. CFPB–2013–0035] 

Truth in Lending (Regulation Z) 

AGENCY: Board of Governors of the 

Federal Reserve System (Board); and 

Bureau of Consumer Financial 

Protection (Bureau). 

ACTION: Final rules, official 

interpretations and commentary. 

SUMMARY: The Board and the Bureau are 

publishing final rules amending the 

official interpretations and commentary 

for the agencies’ regulations that 


emcdonald on DSK67QTVN1PROD with RULES