[Federal Register Volume 73, Number 64 (Wednesday, April 2, 2008)]
[Rules and Regulations]
[Pages 17885-17887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-6655]
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FEDERAL RESERVE SYSTEM
12 CFR Part 268
[Docket No. OP-1264]
Rules Regarding Equal Opportunity
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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SUMMARY: The Board of Governors of the Federal Reserve System (the
Board) has adopted a final rule that amends the section of its Rules
Regarding Equal Opportunity (EEO Rules) which governs the employment of
persons who are not United States citizens consistent with the Board's
requirements for the security of its information. The amendment to this
rule was first published on November 8, 2005, as an immediately
effective interim rule with opportunity for public comment. The Board
received no comments on the rule. On its own initiative, to address
additional operational issues, the Board made further changes to the
rule and on August 7, 2006, published a new immediately effective
interim rule with opportunity for public comment. The Board received no
comments on the
[[Page 17886]]
rule. With the changes discussed below, the Board is now adopting the
August 7, 2006, interim rule as the final rule.
DATES: This final rule is effective April 2, 2008.
FOR FURTHER INFORMATION CONTACT: Alicia S. Foster, Senior Counsel (202-
452-5289), Legal Division, Board of Governors of the Federal Reserve
System, 20th Street and Constitution Avenue, NW., Washington, DC 20551.
For users of Telecommunications Device for the Deaf (TDD) only, contact
202-263-4869.
SUPPLEMENTARY INFORMATION: On November 8, 2005, by an immediately
effective interim rule (70 FR 67641), the Board amended Sec. 268.205
to permit the Board to hire certain Non-Citizens into positions
requiring access to information of the Federal Open Market Committee
(FOMC), subject to particular conditions and a preference for U.S.
citizens over equally qualified non-citizens.\1\ The Board received no
comments on the November 2005 interim rule. After the Board published
the November 2005 interim rule and before the Board published the rule
in final form, however, it became apparent that the hiring pressures
that affected positions requiring access to FOMC Information and
prompted the change in the EEO Rules also existed with respect to
certain positions requiring access to Confidential Supervisory
Information, a second category of Sensitive Information. Therefore, on
August 7, 2006, the Board published a new interim rule (71 FR 44555)
that extended the hiring requirements that apply to FOMC Information to
Confidential Supervisory Information and made some additional
modifications that apply to access to FOMC and Confidential Supervisory
Information. The 60-day comment period for the interim rule ended on
October 6, 2006. The Board received no comments on the August 2006
interim rule. With the changes noted below, the Board is now adopting
the August 2006 interim rule as the final rule.
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\1\ Access to FOMC Information is also governed by the rules of
the FOMC. See, for example, 12 CFR part 271.
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The Board is making three substantive changes to the August 2006
interim rule. First, the Board is amending Sec. 268.205(a)(9)(iii),
which applies only to persons who were employed by the Federal Reserve
as of January 1, 2006, and permits an employee who is a lawfully
admitted permanent resident alien, an alien lawfully admitted for
temporary resident, a refugee, or person granted asylum to qualify as a
Protected Individual for purposes of the Board's rule even if he or she
filed for citizenship beyond the six-month period set forth in 8 U.S.C.
1324b(a)(3)(B)(i). In addition to the requirements set out in the
interim rule for persons in this category, the final rule is amended to
reflect the current policy of the Board that these employees complete a
satisfactory background check. Thus, the Board is amending Sec.
268.205(a)(9)(iii) to add a new paragraph (E) that expressly requires
that an employee may qualify under this section only if he or she also
passes a background investigation acceptable to the Board. Because of
the addition of this new paragraph, which is now the last paragraph in
this section, punctuation changes are also being made to existing
paragraphs (C) and (D).
Second, the Board is modifying Sec. 268.205(c)(4)(i) of the
interim rule, which addresses access by Reserve Bank employees to FOMC
Information, to clarify the interplay between the Sec. 268.205 rule
and the separate rules of the FOMC. The FOMC's rules now apply the
Board's rule under Sec. 268.205 to access to FOMC information by non-
citizens employed anywhere in the Federal Reserve System, and the Board
has amended Sec. 268.205(c)(4)(i) to reflect this action.
Third, the Board is amending the rule to include a new paragraph,
Sec. 268.205(c)(5), addressing exceptions to the rule's requirements
as they apply to access to Confidential Supervisory Information. The
Board believes this new exception is necessary to cover unusual,
unforeseen situations that may arise. Because the need for an exception
should rarely arise, however, the exception is very narrow. To be
granted an exception, the requester must demonstrate that unusual
circumstances exist and that the employee for whom access is being
requested has a strong and particularized need for access to the
Confidential Supervisory Information. All exceptions for access to
Confidential Supervisory Information must be approved by the Chairman
of the Board's Committee on Supervisory and Regulatory Affairs. A
similar provision is not necessary for FOMC Information because the
rules of the FOMC delineate when exceptions, including those on the
basis of citizenship may be granted, for access to FOMC Information by
Board and Reserve Bank employees and others. As a result of this new
paragraph (5), the existing paragraph (c)(5) has been redesignated as
paragraph (c)(6).
Finally, the Board is making editorial corrections to the phrases
``appropriations laws'' and the ``appropriations ban'' as referenced in
the definition of ``Country List'' at Sec. 268.205(a)(3).
Final Regulatory Flexibility Act Analysis
The Regulatory Flexibility Act (Pub. L. 96-354, 5 U.S.C. 601 et
seq.), generally requires an agency to perform an assessment of the
impact a rule is expected to have on small entities. However, under
section 605(b) of the Regulatory Flexibility Act (RFA), 5 U.S.C.
605(b), the regulatory flexibility analysis otherwise required under
section 604 of the RFA is not required if an agency certifies, along
with a statement providing the factual basis for such certification,
that the rule will not have a significant economic impact on a
substantial number of small entities. Because this rule governs the
Board's dealings with its employees and applicants for employment and
access to FOMC and Confidential Supervisory Information by Reserve Bank
employees, and would not affect small entities as defined for purposes
of the RFA, the Board certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
ch. 3506; 5 CFR 1320 Appendix A.1), the Board reviewed the rule under
the authority delegated to the Board by the Office of Management and
Budget. No collections of information pursuant to the Paperwork
Reduction Act are contained in this rule.
Plain Language
Section 722 of the Gramm-Leach-Bliley Act requires each federal
banking agency to use plain language in all rules published after
January 1, 2000. The Board has attempted to use plain language in
drafting this rule. In the interim proposals, the Board invited
comments on whether it could take additional steps to make the rule
easier to understand. The Board received no comments on Sec. 268.205.
List of Subjects in 12 CFR Part 268
Administrative practice and procedure, Aged, Civil rights, Equal
employment opportunity, Federal buildings and facilities, Federal
Reserve System, Government employees, Individuals with disabilities,
Religious discrimination, Sex discrimination, Wages.
Authority and Issuance
For the reasons discussed in the preamble, the interim rule
amending 12
[[Page 17887]]
CFR part 268, which was published at 71 FR 44555 on August 7, 2006, is
adopted as final with the following changes:
PART 268--RULES REGARDING EQUAL OPPORTUNITY
0
1. The authority citation for part 268 continues to read as follows:
Authority: 12 U.S.C. 244 and 248 (i), (k), and (l).
0
2. Amend Sec. 268.205 as follows:
0
a. In paragraph (a)(3), correct ``appropriations' laws'' to read
``appropriations laws'' and correct ``appropriations' ban'' to read
``appropriations ban''.
0
b. Remove the word ``and'' at the end of paragraph (a)(9)(iii)(C) and
add ``; and'' at the end of paragraph (a)(9)(iii)(D).
0
c. Add a new paragraph (a)(9)(iii)(E).
0
d. Revise paragraph (c)(4)(i).
0
e. Redesignate paragraph (c)(5) as paragraph (c)(6), and add a new
paragraph (c)(5).
The additions and revisions read as follows:
Sec. 268.205 Employment of aliens; Access to sensitive information.
(a) * * *
(9) * * *
(iii) * * *
(E) Has completed a background investigation acceptable to the
Board.
* * * * *
(c) * * *
(4) * * *
(i) FOMC Information. By action of the FOMC, a Reserve Bank
employee may access FOMC Information in accordance with these rules.
* * * * *
(5) Exceptions for access to Confidential Supervisory Information.
A Board or Reserve Bank employer may request an exception for access to
Confidential Supervisory Information. The requester must demonstrate
that unusual circumstances exist and that the Board or Reserve Bank
employee for whom access is being requested has a strong and
particularized need for access to the information. All exceptions for
access to Confidential Supervisory Information must be approved by the
Chairman of the Board's Committee on Supervisory and Regulatory
Affairs.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, March 27, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8-6655 Filed 4-1-08; 8:45 am]
BILLING CODE 6210-01-P