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Rules and Regulations Federal Register

Vol. 70, No. 215

Tuesday, November 8, 2005

This section of the FEDERAL REGISTER • E-mail: Board to be free to hire staff
contains regulatory documents having general regs.comments@federalreserve.gov. independent of other provisions of law
applicability and legal effect, most of which Include docket number in the subject governing the federal government
are keyed to and codified in the Code of line of the message. service in order to ensure that the Board
Federal Regulations, which is published under • FAX: 202/452–3819 or 202/452– is able to hire the highest possible
50 titles pursuant to 44 U.S.C. 1510.
3102. quality of staff to obtain the ‘‘special
The Code of Federal Regulations is sold by • Mail: Jennifer J. Johnson, Secretary, talent’’ it needs to carry out its
the Superintendent of Documents. Prices of Board of Governors of the Federal important responsibilities. See,
new books are listed in the first FEDERAL Reserve System, 20th Street and comments of Senators Owen and Reed,
REGISTER issue of each week. Constitution Avenue, NW., Washington, 51 Cong. Rec. 1138, 1141 (1913). In
DC 20551. recent years, the Board, like employers
All public comments are available from throughout the United States, has been
FEDERAL RESERVE SYSTEM the Board’s web site at having greater difficulty identifying
www.federalreserve.gov/generalinfo/ qualified United States citizens,
12 CFR Part 268 foia/ProposedRegs.cfm as submitted, nationals, or ‘‘intending citizens’’ as
[Docket No. OP–1239] except as necessary for technical candidates for positions in a number of
reasons. Accordingly, your comments important job families. In particular, the
Rules Regarding Equal Opportunity will not be edited to remove any percentage of Ph.D economists
AGENCY: Board of Governors of the identifying or contact information. graduating from U.S. universities who
Federal Reserve System. Public comments may also be viewed are citizens or permanent residents has
electronically or in paper in Room MP– declined steadily from 73 percent in
ACTION: Interim rule with request for
500 of the Board’s Martin Building (20th 1980, to 54 percent in 1990, to 43
and C Streets, NW.) between 9 a.m. and percent in 2001. In order to perform its
SUMMARY: The Board of Governors of the 5 p.m. on weekdays. statutory duties to implement monetary
Federal Reserve System (the Board) is FOR FURTHER INFORMATION CONTACT: policy and serve as the lender of last
soliciting comments on an interim rule Alicia S. Foster, Senior Counsel (202– resort (as well as its other statutory
that would amend the section of its 452–5289), Legal Division, Board of responsibilities), the Board must hire a
Rules Regarding Equal Opportunity Governors of the Federal Reserve significant number of Ph.D economists.
(EEO Rules) which governs the System, 20th Street and Constitution The shrinking pool of graduates with
employment of persons who are not Avenue N.W., Washington, D.C., 20551. Ph.D.’s in economics and other needed
United States citizens consistent with For users of Telecommunications skills who are U.S. citizens, nationals,
the Board’s requirements for the Device for the Deaf (‘‘TDD’’) only, or ‘‘intending citizens’’ has prompted
security of its information. The contact 202/263–4869. the Board to reconsider its hiring
amendments would clarify the SUPPLEMENTARY INFORMATION: policies.
limitations on access to sensitive The Board proposes to amend To address the diminishing number of
information for non-citizen employees. § 268.205 of its Rules Regarding Equal available graduates with Ph.Ds in
The amendment, which concerns the Opportunity (12 CFR 268.205), economics and other needed skills who
internal management of the Board, is governing the employment of persons are U.S. citizens, the Board proposes to
issued as an immediately effective who are not United States citizens in revise its policy regarding hiring for
interim rule, with opportunity for accordance with the Board’s security positions that require access to sensitive
public comment, to ensure that hiring requirements. The amendments are information. This will allow the Board
decisions facing the Board can be made effective immediately, subject to to hire qualified non-citizens in certain
as soon as possible. revision based on public comment. positions of importance to the Board’s
DATES: This interim rule is effective Currently, § 268.205 permits the duties and for which a growing
November 8, 2005. employment of non-citizens in positions proportion of qualified candidates in the
Applicability Date: This interim rule that do not require access to sensitive applicant pool are non-citizens.
is applicable to all decisions on access information, subject to a preference for Currently, the Board does not hire
to Sensitive Information of the Board as citizens over equally qualified non- individuals who are non-citizens into
of November 8, 2005. citizens. Positions that require access to positions that require access to certain
Comment Date: Submit comments on sensitive information currently are types of sensitive information unless the
or before January 9, 2006. reserved for United States citizens or non-citizen intends to obtain and does,
ADDRESSES: You may submit comments, ‘‘intending citizens’’ (that is, non- in fact, seek U.S. citizenship. The Board
identified by Docket No. OP–1239, by citizens seeking U.S. citizenship). Under proposes to amend its rule to allow it to
any of the following methods: the existing § 268.205, ‘‘sensitive hire non-citizens without intention of
• Agency Web site: http:// information’’ is defined to mean—(1) becoming U.S. citizens into positions
www.federalreserve.gov. Follow the Information of the Federal Open Market that require access to sensitive FOMC
instructions for submitting comments at Committee (FOMC); (2) national information in certain circumstances.
http://www.federalreserve.gov/ security classified information; and (3) The Board does not propose to change
generalinfo/foia/ProposedRegs.cfm. confidential supervisory information of its policy governing access to national
• Federal eRulemaking Portal: http:// the Board. security information or confidential
www.regulations.gov. Follow the The framers of the Federal Reserve supervisory information. Moreover,
instructions for submitting comments. Act made special provision for the while the Board’s rule governs hiring,

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67642 Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations

access to FOMC information is with one or more of the Reserve Banks; she is able to obtain a security
ultimately limited by the rules of the and (3) the employee has passed a clearance. Further, with respect to
FOMC. background investigation acceptable to confidential supervisory information,
The interim rule would retain the the Board. If the Country List changes so the interim rule would specify that
Board’s preference for U.S. citizens and that the employee’s country is no longer access to this information is limited to
U.S. nationals over equally qualified on the Country List, the employee’s Protected Individuals (formerly citizens,
non-citizens. Under both the current access to Class II FOMC information nationals and intending citizens) with a
and interim rule, U.S. citizens, U.S. would not be affected by the change in need to know employed by the Board or
nationals, and intending citizens 1 (all of the Country List. Similarly, the by a Federal Reserve Bank.
whom are now referred to as ‘‘Protected employee would continue to be eligible The interim rule would also update
Individuals’’) may be hired into a for access to Class I information and some of the terminology used in the
position requiring access to sensitive may be granted such access if he or she current rule. In this respect, the interim
information. The interim rule focuses meets the remaining conditions outlined rule would substitute the term
only on non-citizens who do not intend above for employees from a country on ‘‘Protected Individual’’ for ‘‘U.S.
to obtain U.S. citizenship and, in the Country List. citizens and intending citizens.’’ The
particular, on the hiring of these non- Under the interim rule, the Board may term ‘‘Protected Individual’’ covers U.S.
citizens into positions requiring access hire into a position that requires access citizens, U.S. nationals, and aliens
to FOMC information. to Class III FOMC information a person meeting the requirements of 8 U.S.C.
For purposes of hiring individuals who is a non-citizen without intention 1324(a)(3)(B) who have filed a
into positions that require access to of becoming a U.S. citizen and who is declaration of intention to become a
FOMC information, the interim rule from a country that is not on the citizen of the United States. This more
would distinguish between non-citizens Country List. Upon meeting the three inclusive term is consistent with
from a country on the Country List conditions discussed above, a non- existing immigration law, which no
contained in the annual federal citizen from such a country may also be longer uses the term ‘‘intending citizen’’
appropriations laws specifying granted access to Class II information. but uses instead the term ‘‘Protected
countries, including a general category However, the Board would not provide Individual.’’
of ‘‘countries allied with the United access to Class I information to a non- Further, where the current rule refers
States in a current defense effort,’’ citizen from a country that is not on the only to ‘‘U.S. citizens,’’ the interim rule
whose citizens are eligible to be hired as Country List. would add the term ‘‘national’’ to make
federal employees using appropriated The interim rule does not change clear that both U.S. citizens and U.S.
funds and non-citizens from a country access by a non-citizen to confidential nationals are, in fact, similarly treated.
that is not on the Country List.2 Because supervisory information or classified The term ‘‘national’’ refers to certain
the Board’s funds are not appropriated, information. As result, the existing individuals who are not citizens of the
the Board is not subject to this limitations on who may have access to U.S. and typically are born in or are
limitation on hiring. However, Congress this information would be continued. descendants of individuals in the
periodically affirms that other Beyond the changes discussed above, outlying possessions of the U.S. Thus,
government agencies may use the interim rule includes a more the interim rule provides that the hiring
appropriated funds to hire non-citizens comprehensive definition of ‘‘FOMC preference is a preference for U.S.
from countries on the Country List. The information’’ that contains a description citizens and U.S. nationals over equally
rule uses the term ‘‘Country List’’ as a of the three internal security qualified non-citizens.
common point of reference. designations that apply to this The Board also proposes to add a
Under the interim rule, the Board may information. The interim rule also definition of ‘‘employee’’ to clarify the
hire into a position that requires access replaces the citation to Executive Order coverage of the rule and a definition of
to Class III or Class II FOMC information 11356 with the citation to Executive ‘‘national.’’ The interim rule includes a
a non-citizen who does not intend to Order 12958 entitled, ‘‘Classified revised definition of ‘‘non-citizen’’ that
obtain U.S. citizenship and who is from National Security Information,’’ as this more accurately reflects its meaning.
a country that is on the Country List.3 executive order, and its amendments, This rule relates solely to matters of
In addition, if he or she meets three control what information is considered agency management or personnel, and,
conditions set forth in the rule, that classified. The definition of therefore, is not subject to the public
person may be granted access to Class ‘‘confidential supervisory information’’ notice and comment provisions of the
I FOMC information. Those conditions remains unchanged. Administrative Procedures Act, 5 U.S.C.
are: (1) The employee’s Division The interim rule also separately 553(a)(2). However, the Board has in the
Director recommends the employee be addresses what access is applicable to past found public comment on this
given access to Class I FOMC each of the three types of sensitive matter to be helpful and invites
information; (2) the employee has information, i.e., FOMC information, comment on this rule. While allowing
resided in the United States for at least classified information, and confidential comment, the Board has determined
six years and has been employed for at supervisory information. For example, that it is unnecessary, and would be
least two years with the Board and/or as discussed above, the interim rule impracticable, to defer the effective date
provides new parameters for access that of this action until after notice and after
1 An intending citizen is an individual who is a are applicable only to FOMC public comments have been received
lawfully admitted permanent resident alien, information. The rule would also and considered (5 U.S.C. 553(d)(3)).
refugee, or asylum grantee and who has evidenced
an intention to become a U.S. citizen.
change the present language on access Issuance of this rule as an interim rule
2 The appropriations ban that contains the to classified information to provide that is appropriate, in any event, because the
Country List is codified at 5 U.S.C. 3101 note. access is determined by the applicable rule concerns only the internal
Which countries are considered to be ‘‘allied with executive orders and amendments. This management and personnel of the Board
the U.S. in a current defense effort,’’ is a decision more general reference incorporates the and is not subject to statutory delay. In
made by the Department of State, Office of the
Assistant Legal Adviser for Treaty Affairs. current rule’s exception for hiring a addition, the Board is facing immediate
3 FOMC information is classified as Class III, II, non-citizen for a position requiring hiring decisions that would be subject to
and I information, in increasing order of sensitivity. access to classified information if he or this rule. The Board believes that

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Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations 67643

issuance of the regulation as an interim PART 268—RULES REGARDING drafts of meeting minutes, unreleased
rule is necessary for the Board to EQUAL OPPORTUNITY meeting transcripts, documents
conduct its internal management in an reflecting the preparation of semi-
expeditious and efficient manner. The ■ 1. The authority citation for part 268 annual forecasts and related testimony,
Board will consider all public continues to read as follows: and certain sensitive internal
comments received and make changes Authority: 12 U.S.C. 244 and 248 (i), (k), memorandums and reports.
in its procedures based on those and (l). (ii) Class II FOMC covers information
comments where appropriate. On these that is less sensitive than Class I FOMC.
■ 2. Revise 268.205 to read as follows This designation generally applies to
bases, the Board has determined that
good cause exists to make this action § 268.205 Employment of aliens; Access to staff forecasts prepared for the FOMC
effective immediately. As this rule sensitive information and to information about open market
concerns only agency management or (a) Definitions. The definitions operations. Examples of Class II FOMC
personnel, it is not a rule subject to the contained in this paragraph (a) apply Information include, but are not limited
Congressional Review Act (CRA), 5 only to this section: to, Part I of the ‘‘Greenbook,’’ reports of
U.S.C. 804(3)(B), and therefore an (1) Classified Information means the Manager on domestic and foreign
analysis under the CRA is not required. information that is classified for open market operations, and other
national security purposes under materials on economic and financial
Regulatory Flexibility Act Analysis
Executive Order No. 12958, entitled developments.
Pursuant to section 605(b) of the ‘‘Classified National Security (iii) Class III FOMC covers
Regulatory Flexibility Act (Pub. L. 96– Information,’’ including any information that is less sensitive than
354, 5 U.S.C. 601 et seq.), the Board amendments or superseding orders that either Class II or Class I. This
believes that this rule will not have a the President of the United States may designation generally applies to
significant economic impact on a issue from time to time. background information supporting
substantial number of small entities. (2) Confidential Supervisory policy discussions and includes, but is
This rule governs the Board’s dealings Information means confidential not limited to, Part II of the Greenbook.
with its employees and applicants for supervisory information of the Board, as (6) National refers to any individual
employment, and would not affect small defined in 12 CFR 261.2(c). who meets the requirements described
entities as defined for purposes of the (3) Country List refers to the list in 8 U.S.C. 1408.
Regulatory Flexibility Act. Accordingly, contained in the annual federal (7) Non-Citizen refers to any
a regulatory flexibility analysis is not appropriations laws of specific individual who is not a citizen (by birth
required. countries, including a general category or naturalization) of the United States.
(8) Protected Individual means—
Paperwork Reduction Act of ‘‘countries allied with the United (i) A citizen or National of the United
In accordance with the Paperwork States in a current defense effort,’’ and States, or
Reduction Act of 1995 (44 U.S.C. ch. the particular Non-Citizens from those (ii) An alien who:
3506; 5 CFR 1320 Appendix A.1), the countries who are eligible to be hired as (A) Meets the conditions set forth in
Board reviewed the proposal under the Federal employees in the excepted 8 U.S.C. 1324b(a)(3)(B), as amended,
authority delegated to the Board by the service or in the senior executive service and
Office of Management and Budget. No and be paid by appropriated funds. The (B) Has filed with the Board or the
collections of information pursuant to appropriation ban is codified at 5 U.S.C. appropriate Federal Reserve Bank a
the Paperwork Reduction Act are 3101 note. The list of eligible countries declaration of intention to become a
contained in this proposal. and Non-Citizens is subject to legislative citizen of the United States.
and other change. (9) Sensitive Information means
Plain Language (4) Employee means an individual FOMC Information; Classified
Section 722 of the Gramm-Leach- who works full-time or part-time and is Information; and Confidential
Bliley Act requires each federal banking appointed into Board service for a Supervisory Information.
agency to use plain language in all rules period of more than 90 days. The term (b) Hiring.
published after January 1, 2000. In light ‘‘employee’’ does not include members (1) Prohibition against hiring
of this requirement, the Board has of the Board. unauthorized aliens. An individual is
sought to present the interim rule in a (5) FOMC Information means eligible for employment with the Board
simple and straightforward manner. The confidential information of the Federal only if he or she satisfies the
Board invites comment on whether the Open Market Committee (FOMC) requirements of Section 101 of the
Board could take additional steps to regardless of the form or format in Immigration Reform and Control Act of
make the rule easier to understand. which it is created, conveyed, or 1986, 8 U.S.C. 1324a.
maintained. FOMC information (2) Preference. Consistent with
List of Subjects in 12 CFR Part 268 includes information derived from applicable law, where two applicants
Administrative practice and confidential FOMC materials. Three for employment at the Board are equally
procedure, Aged, Civil rights, Equal internal security designations, which qualified for a position, the Board shall
employment opportunity, Federal are subject to change by the FOMC, prefer the citizen or National of the
buildings and facilities, Federal Reserve apply to FOMC Information as follows: United States over the equally qualified
System, Government employees, (i) Class I FOMC generally applies to Non-Citizen.
Individuals with disabilities, Religious materials containing policymaker input, (3) Protected Individuals access to
discrimination, Sex discrimination, such as that related to monetary policy Sensitive Information. The Board may
Wages. decisions at meetings, views expressed hire a person to a position that requires
by policy makers on future policy, and access to Sensitive Information if the
Authority and Issuance
identification of meeting participants person is a Protected Individual.
■ For the reasons set out in the who express particular views. Examples (4) Non-Citizens access to Sensitive
preamble, the Board amends 12 CFR of Class I FOMC Information include, Information. The Board shall not hire a
part 268 as follows: but are not limited to, the ‘‘Bluebook,’’ Non-Citizen, other than a Protected

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67644 Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations

Individual, into a position that requires Supervisory Information is limited to SUPPLEMENTARY INFORMATION:
access to Sensitive Information except Protected Individuals with a need to
Examining the Docket
in accordance with paragraph (c) below. know employed by the Board or by a
(c) Access to Sensitive Information. Federal Reserve Bank. You may examine the airworthiness
(1) Generally. The Board will grant directive (AD) docket on the Internet at
By order of the Board of Governors of the
access to Sensitive Information only in Federal Reserve System. http://dms.dot.gov or in person at the
accordance with the Board’s rules and Docket Management Facility office
Dated: November 2, 2005.
policies regarding access to Sensitive between 9 a.m. and 5 p.m., Monday
Information and, if applicable, the rules Jennifer J. Johnson,
through Friday, except Federal holidays.
and policies of the FOMC. Secretary of the Board. The Docket Management Facility office
(2) FOMC Information. [FR Doc. 05–22223 Filed 11–7–05; 8:45 am] (telephone (800) 647–5227) is located on
(i) Access by a Non-Citizen from a BILLING CODE 6210–01–P the plaza level of the Nassif Building at
country on the Country List. An the street address stated in the
Employee, other than a Protected ADDRESSES section.
Individual, who is a Non-Citizen from a DEPARTMENT OF TRANSPORTATION
country that is on the Country List on Discussion
the date the Employee begins Federal Aviation Administration The FAA issued a notice of proposed
employment with the Federal Reserve rulemaking (NPRM) to amend 14 CFR
System shall be granted access to Class 14 CFR Part 39 part 39 to include an AD that would
I FOMC Information only upon the apply to all Boeing Model 727 airplanes.
[Docket No. FAA–2005–21975; Directorate
recommendation of the Employee’s Identifier 2005–NM–122–AD; Amendment That NPRM was published in the
Division Director after six years of 39–14365; AD 2005–23–07] Federal Register on July 29, 2005 (70 FR
residence in the United States, at least 43802). That NPRM proposed to require
two of which include satisfactory RIN 2120–AA64
revising the Limitations section of the
employment by the Board and/or one or airplane flight manual to prohibit
more of the Federal Reserve Banks, and Airworthiness Directives; Boeing
Model 727 Airplanes resetting a tripped circuit breaker for a
a background investigation acceptable to fuel pump.
the Board. If the Employee’s country is AGENCY: Federal Aviation
deleted from the Country List after the Administration (FAA), Department of Comments
date the Employee begins employment Transportation (DOT). We provided the public the
with the Federal Reserve System, the ACTION: Final rule. opportunity to participate in the
Employee’s access to Class II FOMC development of this AD. We have
information will not be affected by the SUMMARY: The FAA is adopting a new considered the one comment received.
change in the Country List. Similarly, airworthiness directive (AD) for all The commenter supports the NPRM.
the Employee would continue to be Boeing Model 727 airplanes. This AD
eligible for access to Class I information Clarification of Alternative Method of
requires revising the Limitations section
and may be granted such access if he or Compliance (AMOC) Paragraph
of the airplane flight manual to prohibit
she meets the remaining conditions resetting a tripped circuit breaker for a We have revised this action to clarify
outlined above for employees from a fuel pump. This AD results from fuel the appropriate procedure for notifying
country on the Country List. system reviews conducted by the the principal inspector before using any
(ii) Access by a Non-Citizen from a manufacturer. We are issuing this AD to approved AMOC on any airplane to
country not on the Country List. An prohibit the resetting of a tripped circuit which the AMOC applies.
Employee, other than a Protected breaker for a fuel pump, which could
Individual, who, on the date the Conclusion
allow an electrical fault to override the
Employee begins employment with the protective features of the circuit breaker, We have carefully reviewed the
Federal Reserve System, is a Non- and could result in sparks inside the available data, including the comment
Citizen from a country that is not on the fuel tank, ignition of fuel vapors, and received, and determined that air safety
Country List: (A) Shall not be granted consequent fire or explosion. and the public interest require adopting
access to Class I FOMC Information, and DATES: This AD becomes effective
the AD with the change described
(B) shall be granted access to Class II December 13, 2005. previously. We have determined that
FOMC Information only upon the this change will neither increase the
recommendation of the Employee’s ADDRESSES: You may examine the AD
economic burden on any operator nor
Division Director after six years of docket on the Internet at http:// increase the scope of the AD.
residence in the United States, at least dms.dot.gov or in person at the Docket
two of which include satisfactory Management Facility, U.S. Department Costs of Compliance
employment by the Board and/or one or of Transportation, 400 Seventh Street, There are about 600 airplanes of the
more of the Federal Reserve Banks, and SW., Nassif Building, room PL–401, affected design in the worldwide fleet.
a background investigation acceptable to Washington, DC. This AD affects about 300 airplanes of
the Board. Contact Boeing Commercial U.S. registry. The action in this AD
(3) Classified Information. Access to Airplanes, P.O. Box 3707, Seattle, takes about 1 work hour per airplane, at
Classified Information is limited to Washington 98124–2207, for service an average labor rate of $65 per work
those persons who are permitted access information identified in this AD. hour. Based on these figures, the
to Classified Information pursuant to the FOR FURTHER INFORMATION CONTACT: estimated cost of the AD for U.S.
applicable executive orders and any Sulmo Mariano, Aerospace Engineer, operators is $19,500, or $65 per
subsequent amendments or superseding Propulsion Branch, ANM–140S, FAA, airplane.
orders that the President of the United Seattle Aircraft Certification Office,
1601 Lind Avenue, SW., Renton, Authority for This Rulemaking
States may issue from time to time.
(4) Confidential Supervisory Washington 98055–4056; telephone Title 49 of the United States Code
Information. Access to Confidential (425) 917–6501; fax (425) 917–6590. specifies the FAA’s authority to issue

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