Policy. It is the policy of the Board of Governors of the Federal Reserve System to improve the quality and minimize the burdens of its regulations by carefully considering an analysis of proposed regulations before they are published for comment, encouraging maximum public participation in the development of the regulations, and informing the public of the reasons for the Board’s regulatory actions.

Development of regulatory plan. Designated members of the Board will become involved at an early stage in the development of regulations and will meet with staff to review the issues to be considered, the alternative approaches to be explored, a tentative plan to obtain public comment, and target dates for completion of steps in the development of the regulation.

Public involvement in the development of proposals. The Board believes that the public can make valuable contributions in identifying issues that should be addressed in its regulations. With respect to regulations implementing new areas of law or major revisions of existing regulations, the Board will endeavor to obtain preliminary views of interested persons prior to the development of a proposed regulation. For this purpose, the Board will utilize such procedures as it deems appropriate, including publication of an advance notice of proposed rulemaking, which may suggest specific issues on which comments should be focused; scheduling of an open conference or informal public hearing; and direct solicitation of views from interested persons or groups, selected so as to assure that conflicting interests and appropriate public bodies are fairly represented.

Initial analysis of proposals. Before presenting any proposals regarding a regulation to the Board for formal action, the staff will prepare a regulatory analysis of the proposal. The extent of the regulatory analysis at this stage will vary, depending upon the nature of the regulation. In every case, at a minimum, the regulatory analysis will discuss the need for and purposes of the regulation; set forth the various options available; discuss, where appropriate, their possible economic implications; evaluate their compliance, record-keeping, and reporting burdens; and recommend the best course of action based on an evaluation of the alternatives. If the regulation concerns an area where considerable information is available, a correspondingly more exhaustive regulatory analysis will be expected.

Preliminary action by the Board. Consideration of the proposals by the Board ordinarily will take place at a meeting open to public observation. The Board ordinarily will authorize publication of a proposed regulation for comment. At that time, the regulatory analysis of the proposals will be made available to the public.

General public participation. The Board generally will allow at least 60 days for public comment on a proposed regulation. The notice accompanying the proposal will contain a summary analysis of the regulation and inform the public that copies of the regulatory analysis are available through the Freedom of Information Office. When deemed appropriate, the Board may also schedule an informal public hearing.

Staff analysis following public comments. The staff will prepare a summary of comments received, and this document, as well as the written comments, will be made available to the public. After taking account of the public comments, the staff will prepare recommendations for consideration by the designated Board members. When these members are satisfied that the public comments have received full and appropriate attention, the staff’s analysis and recommendations will be presented to the Board for action.

Final action by the Board and announcement of its decision. Final action on the proposals by the Board ordinarily will take place at a meeting open to public observation. The Board will announce the reasons for whatever action it takes regarding a proposed regulation. The announcement will discuss the Board’s rationale for accepting or rejecting arguments regarding the significant issues raised by the public. If the earlier regulatory analysis made available to the public is changed materially, a revised regulatory analysis will be made available.

Semiannual agenda of regulations. On the first Monday in October, the Board will publish in the Federal Register a schedule showing the times during the next 12 months when it will publish a semiannual agenda of regulations under development or review. The agenda shall describe the regulations that the Board anticipates will be considered, the need and legal basis for the action being taken, and the status of regulations previously listed on the agenda. Each item on the agenda will include the name and telephone number of a knowledgeable member of the Board’s staff. Supplements to the agenda may be published at other times during the year as appropriate.

Periodic review of regulations. The Board will review each of its existing regulations at least once every five years. Each regulation is to be reexamined with a view toward eliminating or simplifying it and easing burdens imposed by it. In selecting regulations to be reviewed, the Board will consider such factors as the length of time since the last evaluation of the regulation, the continued need for it, the type and number of complaints and suggestions received, the direct and indirect burdens imposed by the regulation, and the need to simplify or clarify the regulation and eliminate duplication. Essentially the same procedures described in this policy statement will be followed in the periodic review of regulations. Jan. 15, 1979; 1979 Fed. Res. Bull. 137.