[Federal Register Volume 82, Number 224 (Wednesday, November 22, 2017)]
[Rules and Regulations]
[Pages 55495-55496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24052]


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FEDERAL RESERVE SYSTEM

12 CFR Part 265

[Docket No. R-1578]
RIN 7100 AE-85


Rules Regarding Delegation of Authority

AGENCY: Board of Governors of the Federal Reserve System (Board).

ACTION: Final rule.

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SUMMARY: The Board is amending its Rules Regarding Delegation of 
Authority, in connection with the amendment to the Board's Rules of 
Organization (published elsewhere in this issue of the Federal 
Register), to provide a modified quorum procedure during exigent 
circumstances.

DATES: The rule is effective November 22, 2017.

FOR FURTHER INFORMATION CONTACT: Laurie Schaffer, Associate General 
Counsel, (202) 452-2272, or Daniel Hickman, Counsel, (202) 973-7432, 
Legal Division, Board of Governors of the Federal Reserve System, 20th 
Street and Constitution Avenue NW., Washington, DC 20551. For the 
hearing impaired only, Telecommunication Device for Deaf (TDD) users 
may contact (202) 263-4869.

SUPPLEMENTARY INFORMATION: The Board consists of up to seven members 
appointed by the President, by and with the advice and consent of the 
Senate, as provided in the Federal Reserve Act (Act).\1\ The Act does 
not define a quorum of the Board, and authorizes the Board to make all 
rules and regulations necessary to enable the Board effectively to 
perform its duties and functions.\2\ For many years, the Board defined 
a quorum to be a majority (four members) of its authorized strength of 
seven members. In 2003, the Board revised its definition of quorum of 
the Board to be a majority of the Board members currently in office, 
unless there are five members in office, in which case a quorum would 
be four members.\3\ This modification allowed the Board to function 
with fewer than four members in office and enhanced the Board's ability 
to function during emergencies.
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    \1\ See 12 U.S.C. 241.
    \2\ See 12 U.S.C. 248(i).
    \3\ 66 FR 37686 (Jul 19, 2001), as amended at 68 FR 24743 (May 
8, 2003).
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    Over the past decade, the Board has had to operate with fewer than 
five members on several occasions.\4\ Based on this experience, the 
Board has determined that substantial vacancies present administrative 
and logistical challenges that make it difficult to conduct routine 
business and efficiently manage operations, particularly with the 
Board's traditional reliance on a 3-member committee structure. In 
light of these considerations, the Board has reconsidered its quorum 
practice and decided to amend its definition of a quorum \5\ to provide 
that a quorum of the Board is four members, unless there are three or 
fewer members in office, in which case a quorum would be all members in 
office. This revised definition will facilitate the Board's ability to 
continue to function efficiently during periods of substantial 
vacancies on the Board. This revision does not alter the number of 
Board members required to constitute a quorum or the functioning of the 
Board's committee structure in normal operating environments (that is, 
when five or more members are in office).
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    \4\ Since the current structure of the Board was established in 
1936, the Board has had fewer than five members on only a few 
occasions for a short period of time and the Board has never had 
fewer than four members.
    \5\ In a document published elsewhere in this issue of the 
Federal Register.
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    Since this revision may make it more difficult to convene a quorum 
of the Board under exigent circumstances, the Board also has added a 
modified definition of quorum providing that, in an emergency 
situation, a quorum of the Board consists of a majority of the Board 
members in office.\6\ An emergency situation is defined as a situation 
when action on a matter is necessary to prevent, correct, or mitigate 
serious harm to the economy or the stability of the financial system, 
and action is required before the full Board can convene. As part of 
this final rule, the Board is adding a provision to its regulations 
specifying that the Chair (or the Vice Chair, if the Chair is 
unavailable) would be authorized to determine when an emergency 
situation exists.
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    \6\ In a document published elsewhere in this issue of the 
Federal Register.
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    The revised rule relates solely to the internal procedure of the 
Board, and, accordingly, the public notice, public comment and delayed 
effective date provisions of the Administrative Procedure Act do not 
apply. See 5 U.S.C. 553(b) and (d). Because public notice and comment 
is not required, the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
also does not apply to this action.

List of Subjects in 12 CFR Part 265

    Authority delegations (Government agencies), Banks, banking.

Authority and Issuance

    For the reasons set forth in the preamble, the Board amends 12 CFR 
part 265 as follows:

PART 265--RULES REGARDING DELEGATION OF AUTHORITY

0
1. The authority citation of part 265 continues to read as follows:

    Authority: 12 U.S.C. 248(i) and (k).

0
2. Section 265.4(c) is added to read as follows:


Sec.  265.4  Functions delegated to Board members.

* * * * *
    (c) Exigent circumstances. The Chairman is authorized to determine 
when an emergency situation exists for purposes of section 2(b)(2) of 
the Board's Rules of Organization. If the Chairman is unavailable or 
unable to determine that an emergency situation exists, then the Vice 
Chairman is authorized to determine when an emergency situation exists.


[[Page 55496]]


    By order of the Board of Governors of the Federal Reserve 
System, October 31, 2017.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017-24052 Filed 11-21-17; 8:45 am]
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