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Federal Register / Vol. 78, No. 227 / Monday, November 25, 2013 / Rules and Regulations
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-13-00010001.
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.
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[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)
Board of Governors of the
Federal Reserve System (Board); and
Bureau of Consumer Financial
Protection (Bureau).
ACTION: Final rules, official
interpretations and commentary.
AGENCY:

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:
SUMMARY:

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

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$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
1 Public Law 111–203 § 1100E, 124 Stat. 1376
(2010).
2 76 FR 18349 (Apr. 4, 2011).
3 76 FR 78500 (Dec. 19, 2011).
4 Section 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).

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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

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Administrative Procedure Act

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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.

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

List of Subjects

*

12 CFR Part 213

Section 1013.2—Definitions

Advertising, Consumer leasing,
Consumer protection, Federal Reserve
System, Reporting and recordkeeping
requirements.
12 CFR Part 1013

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. * * *

*

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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)
Board of Governors of the
Federal Reserve System (Board); and
Bureau of Consumer Financial
Protection (Bureau).
ACTION: Final rules, official
interpretations and commentary.
AGENCY:

The Board and the Bureau are
publishing final rules amending the
official interpretations and commentary
for the agencies’ regulations that

SUMMARY:

v. From January 1, 2014 through December
31, 2014, the threshold amount is $53,500.

*

*

*

Advertising, Consumer leasing,
Reporting and recordkeeping
requirements.

■

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.

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