57488 Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Rules and Regulations 

to ensure consistency and continuity in 

the Board’s financial planning and 

operations, and to recognize the recent 

order amendment revising the 

marketing year, the assessment rate 

change and the 2008–09 marketing year 

will become effective September 1, 

2008. Additional modification is made 

to correct the erroneous references to 

the total expenditures. Finally, the rule 

is further modified to change the Budget 

Expense Category tables to include the 

amount budgeted for production 

research contingencies and the 

statement at the asterisk to indicate the 

production research contingencies are 

part of the Production Research budget. 

Although the tables were not necessarily 

intended to capture all the Board’s 

expenses, the modifications may 

provide more clarity. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

AMSv1.0/ams.fetchTemplateData.do?

template=TemplateN&page=Marketing

OrdersSmallBusinessGuide. Any 

questions about the compliance guide 

should be sent to Jay Guerber at the 

previously mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the Board and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because the 2008–09 marketing year 

began on September 1, 2008, and the 

marketing order requires that the rate of 

assessment for each year apply to all 

assessable walnuts handled during the 

year; the Board needs to have sufficient 

funds to pay its expenses which are 

incurred on a continuous basis; and 

handlers are aware of this action which 

was unanimously recommended by the 

Board at a public meeting and is similar 

to other assessment rate actions issued 

in past years. Also, a 15-day comment 

period was provided for in the proposed 

rule and no comments in opposition to 

the rule were received. 

List of Subjects in 7 CFR Part 984 

Walnuts, Marketing agreements, Nuts, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 984 is amended as 

follows: 

PART 984—WALNUTS GROWN IN 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 984 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 984.347 is revised to read 

as follows: 

§ 984.347 Assessment rate. 

On and after September 1, 2008, an 

assessment rate of $0.0158 per 

kernelweight pound is established for 

California merchantable walnuts. 

Dated: September 29, 2008. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E8–23390 Filed 10–2–08; 8:45 am] 

BILLING CODE 3410–02–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 204 

[Regulation D; Docket No. R–1297] 

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 reserve 

requirement exemption amount and the 

low reserve tranche for 2009. The 

Regulation D amendments set the 

amount of total reservable liabilities of 

each depository institution that is 

subject to a zero percent reserve 

requirement in 2009 at $10.3 million, up 

from $9.3 million in 2008. This amount 

is known as the reserve requirement 

exemption amount. The Regulation D 

amendment also sets the amount of net 

transaction accounts at each depository 

institution that is subject to a three 

percent reserve requirement in 2009 at 

$44.4 million, up from $43.9 million in 

2008. This amount is known as the low 

reserve tranche. The adjustments to both 

of these amounts are derived using 

statutory formulas specified in the 

Federal Reserve Act. 

The Board is also announcing changes 

in two other amounts, the nonexempt 

deposit cutoff level and the reduced 

reporting limit, that are used to 

determine the frequency at which 

depository institutions must submit 

deposit reports. 

DATES: Effective date: November 3, 

2008. 

Compliance dates: For depository 

institutions that report deposit data 

weekly, the new low reserve tranche 

and reserve requirement exemption 

amount will apply to the fourteen-day 

reserve computation period that begins 

Tuesday, December 2, 2008, and the 

corresponding fourteen-day reserve 

maintenance period that begins 

Thursday, January 1, 2009. For 

depository institutions that report 

deposit data quarterly, the new low 

reserve tranche and reserve requirement 

exemption amount will apply to the 

seven-day reserve computation period 

that begins Tuesday, December 16, 

2008, and the corresponding seven-day 

reserve maintenance period that begins 

Thursday, January 15, 2009. For all 

depository institutions, these new 

values of the nonexempt deposit cutoff 

level, the reserve requirement 

exemption amount, and the reduced 

reporting limit will be used to 

determine the frequency at which a 

depository institution submits deposit 

reports effective in either June or 

September 2009. 

FOR FURTHER INFORMATION CONTACT: 

Sophia Allison, Senior Counsel (202/ 

452–3565), Legal Division, or Margaret 

Gillis DeBoer, Senior Financial Analyst 

(202/452–3139), Division of Monetary 

Affairs; for users 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) of the 

Federal Reserve Act (Act), transaction 

account balances maintained at each 

depository institution are subject to 

reserve requirement ratios of zero, three, 

or ten percent. Section 19(b)(11)(A) of 

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

provides that a zero percent reserve 


jlentini on PROD1PC65 with RULES
Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Rules and Regulations 57489 

1Consistent with Board practice, the low reserve 

tranche and reserve requirement exemption 

amounts have been rounded to the nearest $0.1 

million. 

2Consistent with Board practice, the nonexempt 

deposit cutoff level has been rounded to the nearest 

$0.1 million, and the reduced reporting limit has 

been rounded to the nearest $1 million. 

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. 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 Act requires 

the percentage increase in the reserve 

requirement exemption amount to be 80 

percent of the increase in total 

reservable liabilities of 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 13.0 

percent (from $4,211 billion to $4,760 

billion) between June 30, 2007, and June 

30, 2008. Accordingly, the Board is 

amending Regulation D to increase the 

reserve requirement exemption amount 

by $1.0 million, from $9.3 million for 

2008 to $10.3 million for 2009.1

Pursuant to Section 19(b)(2) of the Act 

(12 U.S.C. 461(b)(2)), transaction 

account balances maintained at each 

depository institution over the reserve 

requirement exemption amount and up 

to a certain amount, known as the low 

reserve tranche, are subject to a three 

percent reserve requirement. 

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 Act requires the 

adjustment in the low reserve tranche to 

be 80 percent of the percentage increase 

or decrease in total transaction accounts 

of all depository institutions over the 

one-year period that ends on the June 30 

prior to the adjustment. 

Net transaction accounts of all 

depository institutions increased 1.4 

percent (from $646 billion to $655 

billion) between June 30, 2007 and June 

30, 2008. Accordingly, the Board is 

amending Regulation D (12 CFR part 

204) to increase the low reserve tranche 

for net transaction accounts by $0.5 

million, from $43.9 million for 2008 to 

$44.4 million for 2009. 

For depository institutions that file 

deposit reports weekly, the new low 

reserve tranche and reserve requirement 

exemption amount will be effective for 

the fourteen-day reserve computation 

period beginning Tuesday, December 2, 

2008, and for the corresponding 

fourteen-day reserve maintenance 

period beginning Thursday, January 1, 

2009. For depository institutions that 

report quarterly, the new low reserve 

tranche and reserve requirement 

exemption amount will be effective for 

the seven-day reserve computation 

period beginning Tuesday, December 

16, 2008, and for the corresponding 

seven-day reserve maintenance period 

beginning Thursday, January 15, 2009. 

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 and 

assigns them to one of four deposit 

reporting panels (weekly reporters, 

quarterly reporters, annual reporters, or 

nonreporters). The panel assignment for 

annual reporters is effective in June of 

the screening year; the panel assignment 

for weekly and quarterly reporters is 

effective in September of the screening 

year. 

In order to ease reporting burden, the 

Board permits smaller depository 

institutions to submit deposit reports 

less frequently than larger depository 

institutions. The Board permits 

depository institutions with net 

transaction accounts above the reserve 

requirement exemption amount but total 

transaction accounts, savings deposits, 

and small time deposits below a 

specified level (the ‘‘nonexempt deposit 

cutoff’’) to report deposit data quarterly. 

Depository institutions with net 

transaction accounts above the reserve 

requirement exemption amount but 

with total transaction accounts, savings 

deposits, and small time deposits above 

the nonexempt deposit cutoff are 

required to report deposit data weekly. 

The Board requires certain large 

depository institutions to report weekly 

regardless of the level of their net 

transaction accounts if the depository 

institution’s total transaction accounts, 

savings deposits, and small time 

deposits exceeds a specified level (the 

‘‘reduced reporting limit’’). The 

nonexempt deposit cutoff level and the 

reduced reporting limit are adjusted 

annually, by an amount equal to 80 

percent of the increase, if any, in total 

transaction accounts, savings deposits, 

and small time deposits of all 

depository institutions over the one-year 

period that ends on the June 30 prior to 

the adjustment. 

From June 30, 2007 to June 30, 2008, 

total transaction accounts, savings 

deposits, and small time deposits at all 

depository institutions increased 5 

percent (from $6,144 billion to $6,443 

billion). Accordingly, the Board is 

increasing the nonexempt deposit cutoff 

level to $224.6 million for 2009. The 

Board is also increasing the reduced 

reporting limit to $1,258 million for 

2009.2

Beginning in 2009, the boundaries of 

the four deposit reporting panels will be 

defined as follows. Those depository 

institutions with net transaction 

accounts over $10.3 million (the reserve 

requirement exemption amount) or with 

total transaction accounts, savings 

deposits, and small time deposits 

greater than or equal to $1,258 million 

(the reduced reporting limit) are subject 

to detailed reporting, and must file a 

Report of Transaction Accounts, Other 

Deposits and Vault Cash (FR 2900 

report) either weekly or quarterly. Of 

this group, those with total transaction 

accounts, savings deposits, and small 

time deposits greater than or equal to 

$224.6 million (the nonexempt deposit 

cutoff level) are required to file the FR 

2900 report each week, while those with 

total transaction accounts, savings 

deposits, and small time deposits less 

than $224.6 million are required to file 

the FR 2900 report each quarter. Those 

depository institutions with net 

transaction accounts less than or equal 

to $10.3 million (the reserve 

requirement exemption amount) and 

with total transaction accounts, savings 

deposits, and small time deposits less 

than $1,258 million (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 $10.3 million (but with total 

transaction accounts, savings deposits, 

and small time deposits less than $1,258 

million) are required to file the Annual 

Report of Deposits and Reservable 

Liabilities (FR 2910a) report annually, 

while those with total deposits less than 

or equal to $10.3 million are not 

required to file a deposit report. A 

depository institution that adjusts 


jlentini on PROD1PC65 with RULES
57490 Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Rules and Regulations 

reported values on its FR 2910a report 

in order to qualify for reduced reporting 

will be shifted to an FR 2900 reporting 

panel. 

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 adjustments 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 $10.3 million ............................................................................. 0 percent of amount. 

Over $10.3 million and up to $44.4 million ....................................... 3 percent of amount. 

Over $44.4 million ............................................................................. $1,023,000 plus 10 percent of amount over $44.4 million. 

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

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

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Director of the Division of Monetary Affairs 

under delegated authority, September 25, 

2008. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. E8–22944 Filed 10–2–08; 8:45 am] 

BILLING CODE 6210–01–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 124 

RIN 3245–AF79 

Small Disadvantaged Business 

Program 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Interim final rule, with request 

for comments. 

SUMMARY: This rule changes the 

requirements relating to which firms 

may certify their status as small 

disadvantaged businesses (SDBs) for 

purposes of federal prime contracts and 

subcontracts. Currently, only those 

firms that have applied to and been 

certified as SDBs by SBA may certify 

themselves to be SDBs for federal prime 

and subcontracts. This rule allows firms 

to self-represent their status for 

subcontracting purposes without first 

receiving any SDB certification. It also 

recognizes that the benefits of being an 

SDB for federal prime contracts has 

been greatly diminished over the past 

years, and shifts the responsibility of 

identifying firms as SDBs for federal 

prime contracts to those limited 

agencies that have authority and chose 

to use price evaluation adjustments to 

SDBs. 

DATES: Effective Date: This rule is 

effective October 3, 2008. 

Comment Date: Comments must be 

received on or before November 3, 2008. 

ADDRESSES: You may submit comments, 

identified by RIN: 3245–AF79, by any of 

the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail, for paper, disk, or CD/ROM 

submissions: Joseph Loddo, Associate 

Administrator, Office of Business 

Development, 409 Third Street, SW., 

Mail Code, Washington, DC 20416. 

• Hand Delivery/Courier: Joseph 

Loddo, Associate Administrator, Office 

of Business Development, 409 Third 

Street, SW., Washington, DC 20416. 

SBA will post all comments on 

www.regulations.gov. If you wish to 

submit confidential business 

information (CBI) as defined in the User 

Notice at www.regulations.gov, please 

submit the information to LeAnn 

Delaney, Deputy Director, Office of 

Business Development, 409 Third 

Street, SW., Washington, DC 20416, or 

send an e-mail to 

LeAnn.Delaney@sba.gov. Highlight the 

information that you consider to be CBI 

and explain why you believe SBA 

should hold this information as 

confidential. SBA will review the 

information and make the final 

determination of whether it will publish 

the information or not. 

FOR FURTHER INFORMATION CONTACT: 

LeAnn Delaney, Deputy Director, Office 

of Business Development, at (202) 205– 

5852, or LeAnn.Delaney@sba.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 1207 of the 1987 Defense 

Authorization Act (Pub. L. 99–661, 

codified in 10 U.S.C. 2323) for the first 

time established a 5 percent goal for all 

Department of Defense (DOD) contracts 

to be awarded to SDBs. To achieve the 

5 percent SDB goal, the statute 

authorized the award of contracts to 

SDBs using less than full and open 

competitive procedures. Specifically, 

DOD developed through regulation a 

practice known as the ‘‘rule of two’’ for 

SDBs. Pursuant to the ‘‘rule of two,’’ 

whenever a contracting officer 

identified two or more SDBs that it 

believed could perform a specific 

procurement at a fair and reasonable 

price, the contracting officer was 

required to set the contract aside for 

bidding exclusively among SDBs. In 

addition, SDBs would receive a 10% 

price evaluation adjustment in the 

evaluation of offers in an unrestricted or 

full and open competition. The DOD’s 

SDB program was a self-certification 

program. SBA established eligibility 

criteria, but firms certified their SDB 

status for particular procurements. SBA 


jlentini on PROD1PC65 with RULES