FINAL_3133-0176_SupportingStatement_013017

SUPPORTING STATEMENT
National Credit Union Administration
Member Inspection of Credit Union Books, Records, and Minutes
OMB Control No. 3133-0176
12 CFR §701.3
A.

JUSTIFICATION

1.

Necessity of Information Collection
Section 701.3 is NCUA’s regulation on the circumstances and conditions under which
Federal credit union (FCU) members may inspect and copy the FCU’s books, records,
and minutes of meetings. The collection of information requirements apply to FCU
members seeking inspection and copying of the FCU’s records and FCUs that receive
such member requests. To obtain access to records, members are required to submit a
petition to the FCU, stating a proper purpose for inspection and signed by at least one
percent of the members, with a minimum of 20 and a maximum of 500 members. The
FCU must permit inspection of relevant records if it receives such a petition. The
members of an FCU own it, and the disclosure requirements placed on an FCU are
necessary to ensure transparency and protect the rights of members.

2.

Purpose and Use of the Information Collection
The FCU records disclosed to members as a result of a petition will be used by the
members to protect their ownership and financial interests. A properly executed petition,
signed by the requisite number of members and establishing a proper purpose, helps
ensure the inspection is not frivolous. The FCU uses the information in determining
whether and upon what terms to provide records to members for inspection. The petition
signatures collected by each FCU will be used by the FCU to verify the membership
status of each petitioner.

3.

Consideration given to information technology
Member-petitioners may collect electronic signatures if they desire. Under NCUA
regulations, FCUs may use any format, electronic or other, to maintain, search for, and
produce responsive records. 12 C.F.R. §749.5.

4.

Duplication
There is no duplication. The collection does not require the FCU to create new records in
response to a member petition. It only requires the FCU to identify and allow member
inspection of existing records.

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5.

Effect on Small Entities
NCUA has reduced the burden for this collection of information to the minimum possible
and in keeping with NCUA’s supervisory responsibilities. Only the records requested,
and relevant to a proper purpose, need be disclosed by FCUs. No records need be
disclosed unless one percent of the members, with a minimum of 20 and maximum of
500 members, sign the requesting petition.

6.

Consequence to the Federal Program if the Collection were Conducted Less
Frequently.
The collection only arises upon a member request. Less frequent collection is
inconsistent with the underlying regulation and would not protect the ownership and
financial interests of the members.

7.

Special Circumstances Necessitating Collection Inconsistent with 5 CFR
§1320.5(d)(2)
The FCU must respond to a petition within 14 days of receipt. This quick turnaround is
necessary to ensure the membership receives relevant records in a timely fashion,
particularly when there is a pending membership vote at the credit union. If the credit
union needs more than 14 days, it can simply inform the members of that fact within the
14-day time window.
The FCU may be required to disclose some information to its members that the credit
union believes is confidential. The members, however, are entitled to this information
because they own the credit union. Section 701.3 contains both procedural and
substantive protections for records the release of which could harm the credit union or its
members or employees. Specifically, members do not have the right to inspect any
portion of the books, records, or minutes if: (1) Federal law or regulation prohibits
disclosure of that portion; (2) publication of that portion could cause the credit union
predictable and substantial financial harm; (3) that portion contains nonpublic personal
information as defined in 12 CFR §1016.3; or (4) that portion contains information about
credit union employees or officials the disclosure of which would constitute a clearly
unwarranted invasion of personal privacy. Furthermore, the rule provides that the NCUA
Regional Director can place conditions on the member inspection of records in
appropriate cases.

8.

Consultations Outside the Agency
A 60-day notice was published in the Federal Register on October 17, 2016, at 81 FR
71542, soliciting comments from the pubic. No comments regarding this proposed
collection of information were received.

9.

Payment or Gift
The information collection does not include any payment or gift to respondents.

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10.

Confidentiality
The regulation contains confidentiality provisions as described in Item 7 above.

11.

Sensitive Questions
This information collection specifically provides that FCUs will not disclose personal
information in response to a member request for records.

12.

Burden of Information Collection
IC 1. Preparation and submission of petition
NCUA estimates that, on an annual basis and across all FCUs, there will be only
approximately five member petitions requesting inspection of FCU records. Each
submission will require the collection of no less than 20 and no more than 500 signatures.
We estimate the burden associated with collecting these signatures based on the average
cost of obtaining signatures in support of ballot initiatives in 2016 in the State of
California 1. The cost to obtain 260 signatures is estimated at roughly $1,600 -- $8,000
for five petitions. Using the average civilian hourly compensation rate of $34 2 this
equates to roughly 48 hours per petition, or 240 hours per year for all petitions.
(5 petitions x 48 hours per petition x $34 per hour = $8,160)
IC 2. Evaluation of petition by FCU
NCUA estimates that it will take an FCU that receives a petition approximately 20 hours
to evaluate the petition, locate the relevant documents, and make them available for
inspection and copying. Five FCUs times 20 hours per respondent equals 100 annual
burden hours.
The estimated average labor cost for an FCU is $35/hour. The annualized labor cost is
calculated at 20 hours x $35/hour equals $700 per FCU response, for an annual labor cost
total of $3,500 (5 respondents x $700 labor cost per response = $3,500) for the FCU
respondents.
IC 3. Resolution of Disputes
In the event of a dispute over the release of information, the parties may ask NCUA
regional directors to become involved to resolve the dispute. This has the effect of
increasing the burden associated with disclosing or obtaining the information. We
believe such disputes to occur rarely, in fact we are not aware of any recent calls for
dispute resolution. However, if such a request were to come to any of the regions, we
estimate that each such dispute would result in an additional burden of 20 hours for each
party involved (including NCUA). For the purposes of this Information Collection
Request, we assume that such appeals occur no more than once per year. The annual
burden to the public of resolving disputes is no more than 20 hours ($700)

1
2

https://ballotpedia.org/California_ballot_initiative_petition_signature_costs
http://www.bls.gov/ncs/ect/sp/ececrse.pdf

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Information
Collection

# Respondents

Members
Prep &
Submission
Federal Credit Union
Evaluation
of Petition
Disputes

# Responses
per
Respondent

# Annual
Responses

Total
Annual
Burden

5

1

5

48

240

5

1

5

20

100

1

1

1

20

20

TOTALS
13.

Hours Per
Response

11

360

Capital, Startup, and Operations and Maintenance Cost
FCUs keep the records members may inspect as a usual and customary business practice.

14.

Cost to Federal Government
The NCUA would only become involved if either the FCU or the members requests
NCUA to resolve a dispute concerning a request for records. This would likely happen
No more than one time per year, at a cost of $1,600.

15.

Explanation of Change in Burden
This is an extension of a previously approved collections. The changes in burden are
attributable to the inclusion of FCU members as respondents and inclusion potential
dispute resolution.

16.

Information Collection Planned for Statistical Use
This information collection does not involve results to be published.

17.

Display of OMB Expiration Date
There are no traditional collection instruments associated with this collection of
information (e.g. forms). The OMB control number and expiration date associated with
this PRA submission will be displayed on the Federal government’s electronic PRA
docket at www.reginfo.gov.

17.

Exception to the certification statement
NCUA does not request an exception to the certification of this information collection.

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B.

Collections of Information Employing Statistical Methods

This collection does not employ statistical methods.

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