Rules of Practice and Procedure; Civil Money Penalty Inflation Adjustments, 66493-66497 [E8-26654]

Download as PDF Federal Register / Vol. 73, No. 218 / Monday, November 10, 2008 / Rules and Regulations level of the employee’s position is changed to a higher level, the employee may remain in or encumber the position. Any upgrade in the investigation required for the new risk level should be initiated within 14 calendar days after the promotion, demotion, reassignment or new designation of risk level is final. * * * * * Subpart B—Suitability Determinations and Actions 6. In § 731.202, add a new paragraph (d) to read as follows: ■ § 731.202 Criteria for making suitability determinations. * * * * * (d) Reciprocity. An agency cannot make a new determination under this section for a person who has already been determined suitable or fit based on character or conduct unless a new investigation is required under § 731.104 or § 731.106, or no new investigation is required but the investigative record on file for the person shows conduct that is incompatible with the core duties of the relevant covered position. ■ 7. Add a new § 731.206 to read as follows: § 731.206 Reporting requirements. Agencies must report to OPM the level and result of each background investigation, suitability determination, and suitability action taken under this part, as required in OPM issuances. [FR Doc. E8–26558 Filed 11–7–08; 8:45 am] BILLING CODE 6325–39–P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Part 19 [Docket ID OCC–2008–0020] RIN 1557–AD11 Rules of Practice and Procedure; Civil Money Penalty Inflation Adjustments Office of the Comptroller of the Currency, Treasury. ACTION: Final rule. dwashington3 on PRODPC61 with RULES AGENCY: The Office of the Comptroller of the Currency (OCC) is amending its rules of practice and procedure, set forth at 12 CFR part 19, to adjust the maximum amount of each civil money penalty (CMP) within its jurisdiction to administer to account for inflation. This SUMMARY: VerDate Aug<31>2005 15:24 Nov 07, 2008 Jkt 217001 action, including the amount of the adjustment, is required under the Federal Civil Penalties Inflation Adjustment Act of 1990 (Inflation Adjustment Act), as amended by the Debt Collection Improvement Act of 1996. The OCC is also amending part 19 to add to our list of penalties a new CMP, which was authorized after the OCC last adjusted its CMPs. DATES: Effective Date: December 10, 2008. FOR FURTHER INFORMATION CONTACT: Michele Meyer, Assistant Director, or Jean Campbell, Senior Attorney, Legislative and Regulatory Activities Division, (202) 874–5090, or David Weber, Counsel, Enforcement and Compliance Division, (202) 874–4800, Office of the Comptroller of the Currency, 250 E Street, SW., Washington, DC 20219. SUPPLEMENTARY INFORMATION: Background The Inflation Adjustment Act, 28 U.S.C. 2461 note, requires the OCC, as well as other Federal agencies with CMP authority, periodically to publish regulations adjusting for inflation each CMP authorized by a law that the agency has jurisdiction to administer. The purpose of these adjustments is to maintain the deterrent effect of CMPs and to promote compliance with the law. The Inflation Adjustment Act requires adjustments to be made at least once every four years following the initial adjustment. The OCC’s prior adjustment to each CMP was published in the Federal Register on November 10, 2004, 69 FR 65067, and became effective on December 10, 2004. The Inflation Adjustment Act requires that the adjustment reflect the percentage increase in the Consumer Price Index between June of the calendar year preceding the year in which the adjustment will be made and June of the calendar year in which the amount was last set or adjusted. The Inflation Adjustment Act defines the Consumer Price Index as the Consumer Price Index for all urban consumers (CPI–U) published by the Department of Labor.1 See 28 U.S.C. 2461 note. In addition, the Inflation Adjustment Act provides rules for rounding off increases,2 and requires that any 1 The Department of Labor computes the CPI–U using two different base time periods, 1967 and 1982–1984, and the Act does not specify which of these base periods should be used to calculate the inflation adjustment. The OCC, consistent with the other Federal banking agencies, has used the CPI– U with 1982–84 as the base period. Data on the CPI–U is available at https://bls.gov. 2 The Act’s rounding rules require that an increase be rounded to the nearest multiple of: $10 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 66493 increase in a CMP apply only to violations that occur after the date of the adjustment. Finally, section 2 of the Debt Collection Improvement Act amended the Inflation Adjustment Act by limiting the initial adjustment of a CMP pursuant to the Inflation Adjustment Act to no more than 10 percent of the amount set by statute. See 28 U.S.C. 2461 note. Description of the Final Rule Inflation Adjustment This final rule adjusts the amount for each CMP that the OCC has jurisdiction to impose in accordance with the statutory requirements by revising the table contained in subpart O of 12 CFR part 19. The table identifies the statutes that provide the OCC with CMP authority, describes the different tiers of penalties provided in each statute (as applicable), and sets out the inflationadjusted maximum penalty that the OCC may impose pursuant to each statutory provision. The Act requires that we compute the inflation adjustment by comparing the CPI–U for June of the calendar year preceding the adjustment with the CPI– U for June of the year in which the CMPs were last set or adjusted. See 28 U.S.C. 2461 note. The majority of CMPs were adjusted in 2004. For those CMPs, we compared the CPI–U for June 2007 (208.352) with the CPI–U for June 2004 (189.7). This resulted in an inflation adjustment of 9.8 percent. Two penalties were last adjusted in 2000.3 For those penalties, we compared the CPI–U for June 2007 (208.352) with the CPI–U for June 2000 (172.4). This resulted in an inflation increase of 20.9 percent. Three penalties were last adjusted in 1997.4 For those penalties, we compared the CPI–U for June 1997 (160.3) with the CPI–U for June 2007 (208.352). This resulted in an inflation increase of 30.0 percent. We multiplied the amount of each CMP by the appropriate percentage inflation adjustment, added that amount to the current penalty, and rounded the in the case of penalties less than or equal to $100; $100 in the case of penalties greater than $100 but less than or equal to $1,000; $1,000 in the case of penalties greater than $1,000 but less than or equal to $10,000; $5,000 in the case of penalties greater than $10,000 but less than or equal to $100,000; $10,000 in the case of penalties greater than $100,000 but less than or equal to $200,000; and $25,000 in the case of penalties greater than $200,000. See 28 U.S.C. 2461 note. 3 Those penalties last adjusted in 2000 are authorized by 12 U.S.C. 164 and 3110(c), Tier 1. See 65 FR 66250 (Dec. 11, 2000). 4 Those penalties last adjusted in 1997 are authorized by 12 U.S.C. 1832(c), 12 U.S.C. 3909(d)(1), and 12 U.S.C. 1884. See 62 FR 3199 (Jan. 22, 1997). E:\FR\FM\10NOR1.SGM 10NOR1 Federal Register / Vol. 73, No. 218 / Monday, November 10, 2008 / Rules and Regulations dwashington3 on PRODPC61 with RULES resulting dollar amount up or down according to the rounding requirements of the Act. In some cases, rounding resulted in no adjustment to the CMP. The following table shows both the present CMPs and the inflation adjusted VerDate Aug<31>2005 15:55 Nov 07, 2008 Jkt 217001 CMPs. The table published in § 19.240(a) is shorter and shows only the adjusted CMPs, not the calculations. Section 19.240(b) is amended, consistent with the statute, to state that the adjustments made in § 19.240(a) PO 00000 Frm 00008 Fmt 4700 Sfmt 4725 apply only to violations that occur after the effective date of this final rule. BILLING CODE 4810–33–P E:\FR\FM\10NOR1.SGM 10NOR1 ER10NO08.000</GPH> 66494 Federal Register / Vol. 73, No. 218 / Monday, November 10, 2008 / Rules and Regulations New CMP The OCC is adding to its list of penalties a new CMP, as authorized by 12 U.S.C. 1820(k).5 Section 1820(k) applies to senior examiners, or functionally equivalent positions, at a Federal banking agency or Federal Reserve Bank. It prohibits a senior examiner from knowingly accepting compensation as an employee, officer, director, or consultant, from certain depository institutions or depository institution holding companies he or she examined, or from certain related entities, for one year after the examiner leaves the employment or service of the Federal banking agency or Federal Reserve Bank. The statute and its implementing regulation6 permit the OCC to assess a penalty of not more than $250,000 for a violation of the oneyear restriction. Section 1820(k) became effective on December 17, 2005.7 To adjust this CMP, we compared the CPI– U for June 2007 (208.352) with the CPI– U for June 2005 (194.5). This resulted in an inflation increase of 7.1 percent. Clarifying Change The OCC is revising the chart format at 12 CFR 19.240(a) to be more readable. The revised chart separately identifies each statute and the different tiers of penalties provided in each statute (as applicable) rather than combining multiple statutes that assess identical CMPs. Procedural Issues 1. Notice and Comment Procedure Under the Administrative Procedure Act (APA), an agency may dispense with public notice and an opportunity for comment if the agency finds, for good cause, that these procedural requirements are impracticable, dwashington3 on PRODPC61 with RULES 5 Pub. L. 108–458, Title VI, section 6303(b), 118 Stat. 3638, 3751 (Dec. 17, 2004). 6 See 12 U.S.C. 1820(k)(6)(A)(ii); 12 CFR part 4, subpart E. 7 See 12 U.S.C. 1820 note and 12 CFR 4.75. VerDate Aug<31>2005 15:24 Nov 07, 2008 Jkt 217001 unnecessary, or contrary to the public interest. 5 U.S.C. 553(b)(B). The Act provides the OCC no discretion in calculating the amount of the civil penalty adjustment. The OCC, accordingly, cannot vary the methodology used to calculate the adjustment or the amount of the adjustment to reflect any views or suggestions provided by commenters. For this reason, the OCC has concluded that notice and comment procedures are unnecessary and that good cause exists for dispensing with them. 2. Delayed Effective Date The Riegle Community Development and Regulatory Improvement Act of 1994 requires that the effective date of new regulations and amendments to regulations that impose additional reporting, disclosures, or other new requirements on insured depository institutions shall be the first day of a calendar quarter that begins on or after the date the regulations are published in final form. See 12 U.S.C. 4802(b)(1). The RCDRIA does not apply to this final rule because the rule merely increases the amount of CMPs that already exist and does not impose any additional reporting, disclosures, or other new requirements. Regulatory Flexibility Act The Regulatory Flexibility Act applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to 5 U.S.C. 553(b). See 5 U.S.C. 601(2). Because the OCC has determined for good cause that the APA does not require public notice and comment on this final rule, we are not publishing a general notice of proposed rulemaking. Thus, the Regulatory Flexibility Act does not apply to this final rule. Executive Order 12866 The OCC has determined that this final rule is not a significant regulatory action under Executive Order 12866. PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 66495 Unfunded Mandates Reform Act of 1995 The OCC has determined that this final rule will not result in expenditures by State, local, and tribal governments, or by the private sector, of $133 million or more in any one year.8 Accordingly, a budgetary impact statement is not required under section 202 of the Unfunded Mandates Reform Act of 1995. See 2 U.S.C. 1532(a). List of Subjects in 12 CFR Part 19 Administrative practice and procedure, Crime, Equal access to justice, Investigations, National banks, Penalties, Securities. Authority and Issuance For the reasons set out in the preamble, part 19 of chapter I of title 12 of the Code of Federal Regulations is amended as follows: ■ PART 19—RULES OF PRACTICE AND PROCEDURE 1. The authority citation for part 19 continues to read as follows: ■ Authority: 5 U.S.C. 504, 554–557; 12 U.S.C. 93(b), 93a, 164, 505, 1817, 1818, 1820, 1831m, 1831o, 1972, 3102, 3108(a), 3909, and 4717; 15 U.S.C. 78(h) and (i), 78o–4(c), 78o– 5, 78q–1, 78s, 78u, 78u–2, 78u–3, and 78w; 28 U.S.C. 2461 note; 31 U.S.C. 330 and 5321; and 42 U.S.C. 4012a. 2. Section 19.240 is revised to read as follows: ■ § 19.240 Inflation adjustments. (a) The maximum amount of each civil money penalty within the OCC’s jurisdiction is adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) as follows: BILLING CODE 4810–33–P 8 The Unfunded Mandates Reform Act of 1995 sets a threshold of $100 million and requires that threshold to be adjusted annually for inflation. See 2 U.S.C. 1532(a). The OCC has calculated that the inflation-adjusted amount for 2009 is $133 million. E:\FR\FM\10NOR1.SGM 10NOR1 VerDate Aug<31>2005 Federal Register / Vol. 73, No. 218 / Monday, November 10, 2008 / Rules and Regulations 15:24 Nov 07, 2008 Jkt 217001 PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 E:\FR\FM\10NOR1.SGM 10NOR1 ER10NO08.001</GPH> dwashington3 on PRODPC61 with RULES 66496 Federal Register / Vol. 73, No. 218 / Monday, November 10, 2008 / Rules and Regulations (b) The adjustments in paragraph (a) of this section apply to violations that occur after December 10, 2008. 5682; e-mail DDCS@boeing.com; Internet https:// www.myboeingfleet.com. Dated: October 31, 2008. John C. Dugan, Comptroller of the Currency. [FR Doc. E8–26654 Filed 11–7–08; 8:45 am] Examining the AD Docket You may examine the AD docket on the Internet at https:// www.regulations.gov; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and other information. The address for the Docket Office (telephone 800–647–5527) is the Document Management Facility, U.S. Department of Transportation, Docket Operations, M–30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue, SE., Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: Shannon Lennon, Aerospace Engineer, Cabin Safety and Environmental Systems Branch, ANM–150S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue, SW., Renton, Washington 98057–3356; telephone (425) 917–6436; fax (425) 917–6590. SUPPLEMENTARY INFORMATION: BILLING CODE 4810–33–C DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2005–20836; Directorate Identifier 2005–NM–028–AD; Amendment 39–15730; AD 2008–23–09] RIN 2120–AA64 Airworthiness Directives; Boeing Model 727–200 and 727–200F Series Airplanes; 737–200, 737–200C, 737– 300, and 737–400 Series Airplanes; 747–100, 747–100B, 747–100B SUD, 747–200B, 747–200C, 747–200F, 747– 300, 747–400, 747SR, and 747SP Series Airplanes; 757–200, 757–200CB, and 757–200PF Series Airplanes; and 767– 200 and 767–300 Series Airplanes Federal Aviation Administration (FAA), DOT. ACTION: Final rule. dwashington3 on PRODPC61 with RULES AGENCY: SUMMARY: We are adopting a new airworthiness directive (AD) for certain Boeing transport category airplanes. This AD requires replacing any insulation blanket constructed of polyethyleneteraphthalate (PET) film, ORCON Orcofilm AN–26 (hereafter ‘‘AN–26’’), with a new insulation blanket. This AD results from reports of in-flight and ground fires on certain airplanes manufactured with insulation blankets covered with AN–26, which may contribute to the spread of a fire when ignition occurs from sources such as electrical arcing or sparking. We are issuing this AD to ensure that insulation blankets constructed of AN–26 are removed from the fuselage. Such insulation blankets could ignite and propagate a fire that is the result of electrical arcing or sparking. DATES: This AD is effective December 15, 2008. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of December 15, 2008. ADDRESSES: For service information identified in this AD, contact Boeing Commercial Airplanes, P.O. Box 3707, Seattle, Washington 98124–2207; telephone 206–544–9990; fax 206–766– VerDate Aug<31>2005 15:24 Nov 07, 2008 Jkt 217001 Summary of the NPRM We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 to include an airworthiness directive (AD) that would apply to certain Boeing Model 727–200 and 727– 200F series airplanes; 737–200, 737– 200C, 737–300, and 737–400 series airplanes; 747–100, 747–100B, 747– 100B SUD, 747–200B, 747–200C, 747– 200F, 747–300, 747–400, 747SR, and 747SP series airplanes; 757–200 and 757–200PF series airplanes; and 767– 200 and 767–300 series airplanes. That NPRM was published in the Federal Register on April 4, 2005 (70 FR 16986). That NPRM proposed to require removing all insulation blankets within the pressurized areas of the affected airplanes and installing a new insulation blanket meeting the requirements of Section 25.856(a) of Title 14 of the Code of Federal Regulations (CFR) (14 CFR 25.856(a)). That NPRM also proposed to allow operators to develop methods for distinguishing between insulation blankets constructed of AN–26 and other materials. In addition, that NPRM proposed a provision that, if the FAA approves such a method, operators would not be required to remove blankets they determine are not constructed of AN–26. Related Activities After issuance of the NPRM, we extended the comment period of the PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 66497 NPRM by 60 days due to the extensive scope and significant potential impact of the NPRM. An NPRM, extending the comment period, was published in the Federal Register on June 6, 2005 (70 FR 32738). Subsequently, we decided that more time was necessary for interested parties to continue to evaluate the proposal and to submit additional comments with more specific details concerning issues. An NPRM, reopening the comment period, was published in the Federal Register on November 23, 2005 (70 FR 70749). Differences Between the NPRM and the Final Rule We have extended the compliance time of the required replacement from 72 months to 96 months. The revised compliance time should minimize the cost impact on operators by allowing more planning time to comply with the requirements of this AD. We also have revised the cost information and note that there is a substantial change in estimated cost due to increased parts and labor costs, reduced number of airplanes, and assumed service change for the future fleet. In addition, we have deleted the reinstallation requirement of paragraph (h)(2) of the NPRM. The reinstallation requirement would have created an undue burden on operators because not all removals of insulation blankets are done at a heavy maintenance visit with the necessary replacement materials available. Comments We gave the public the opportunity to participate in developing this AD. We considered the comments received from the 21 commenters. The significant comments are as follows. Questioning the Safety Risk of AN–26 Several commenters, such as the Air Transport Association (ATA) on behalf of its members, Boeing, KLM, and Northwest Airlines (NWA), request that we reconsider the NPRM because AN– 26 poses a lower safety risk than indicated in the NPRM, and that AN–26 was not considered unsafe during certification. Boeing states that its in-service events/test data show limited flame spread and no damage to structure/ systems due to aged AN–26. Boeing implies that the mitigating actions for the NPRM should be revised to correspond to the low risk presented by the data, which are proportionally associated with the combination of contamination, ignition, and flame propagation. In addition, Boeing states that the replacement of AN–26 for all locations E:\FR\FM\10NOR1.SGM 10NOR1

Agencies

[Federal Register Volume 73, Number 218 (Monday, November 10, 2008)]
[Rules and Regulations]
[Pages 66493-66497]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26654]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 19

[Docket ID OCC-2008-0020]
RIN 1557-AD11


Rules of Practice and Procedure; Civil Money Penalty Inflation 
Adjustments

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) is 
amending its rules of practice and procedure, set forth at 12 CFR part 
19, to adjust the maximum amount of each civil money penalty (CMP) 
within its jurisdiction to administer to account for inflation. This 
action, including the amount of the adjustment, is required under the 
Federal Civil Penalties Inflation Adjustment Act of 1990 (Inflation 
Adjustment Act), as amended by the Debt Collection Improvement Act of 
1996. The OCC is also amending part 19 to add to our list of penalties 
a new CMP, which was authorized after the OCC last adjusted its CMPs.

DATES: Effective Date: December 10, 2008.

FOR FURTHER INFORMATION CONTACT: Michele Meyer, Assistant Director, or 
Jean Campbell, Senior Attorney, Legislative and Regulatory Activities 
Division, (202) 874-5090, or David Weber, Counsel, Enforcement and 
Compliance Division, (202) 874-4800, Office of the Comptroller of the 
Currency, 250 E Street, SW., Washington, DC 20219.

SUPPLEMENTARY INFORMATION:

Background

    The Inflation Adjustment Act, 28 U.S.C. 2461 note, requires the 
OCC, as well as other Federal agencies with CMP authority, periodically 
to publish regulations adjusting for inflation each CMP authorized by a 
law that the agency has jurisdiction to administer. The purpose of 
these adjustments is to maintain the deterrent effect of CMPs and to 
promote compliance with the law. The Inflation Adjustment Act requires 
adjustments to be made at least once every four years following the 
initial adjustment. The OCC's prior adjustment to each CMP was 
published in the Federal Register on November 10, 2004, 69 FR 65067, 
and became effective on December 10, 2004.
    The Inflation Adjustment Act requires that the adjustment reflect 
the percentage increase in the Consumer Price Index between June of the 
calendar year preceding the year in which the adjustment will be made 
and June of the calendar year in which the amount was last set or 
adjusted. The Inflation Adjustment Act defines the Consumer Price Index 
as the Consumer Price Index for all urban consumers (CPI-U) published 
by the Department of Labor.\1\ See 28 U.S.C. 2461 note. In addition, 
the Inflation Adjustment Act provides rules for rounding off 
increases,\2\ and requires that any increase in a CMP apply only to 
violations that occur after the date of the adjustment. Finally, 
section 2 of the Debt Collection Improvement Act amended the Inflation 
Adjustment Act by limiting the initial adjustment of a CMP pursuant to 
the Inflation Adjustment Act to no more than 10 percent of the amount 
set by statute. See 28 U.S.C. 2461 note.
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    \1\ The Department of Labor computes the CPI-U using two 
different base time periods, 1967 and 1982-1984, and the Act does 
not specify which of these base periods should be used to calculate 
the inflation adjustment. The OCC, consistent with the other Federal 
banking agencies, has used the CPI-U with 1982-84 as the base 
period. Data on the CPI-U is available at https://bls.gov.
    \2\ The Act's rounding rules require that an increase be rounded 
to the nearest multiple of: $10 in the case of penalties less than 
or equal to $100; $100 in the case of penalties greater than $100 
but less than or equal to $1,000; $1,000 in the case of penalties 
greater than $1,000 but less than or equal to $10,000; $5,000 in the 
case of penalties greater than $10,000 but less than or equal to 
$100,000; $10,000 in the case of penalties greater than $100,000 but 
less than or equal to $200,000; and $25,000 in the case of penalties 
greater than $200,000. See 28 U.S.C. 2461 note.
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Description of the Final Rule

Inflation Adjustment

    This final rule adjusts the amount for each CMP that the OCC has 
jurisdiction to impose in accordance with the statutory requirements by 
revising the table contained in subpart O of 12 CFR part 19. The table 
identifies the statutes that provide the OCC with CMP authority, 
describes the different tiers of penalties provided in each statute (as 
applicable), and sets out the inflation-adjusted maximum penalty that 
the OCC may impose pursuant to each statutory provision.
    The Act requires that we compute the inflation adjustment by 
comparing the CPI-U for June of the calendar year preceding the 
adjustment with the CPI-U for June of the year in which the CMPs were 
last set or adjusted. See 28 U.S.C. 2461 note. The majority of CMPs 
were adjusted in 2004. For those CMPs, we compared the CPI-U for June 
2007 (208.352) with the CPI-U for June 2004 (189.7). This resulted in 
an inflation adjustment of 9.8 percent. Two penalties were last 
adjusted in 2000.\3\ For those penalties, we compared the CPI-U for 
June 2007 (208.352) with the CPI-U for June 2000 (172.4). This resulted 
in an inflation increase of 20.9 percent. Three penalties were last 
adjusted in 1997.\4\ For those penalties, we compared the CPI-U for 
June 1997 (160.3) with the CPI-U for June 2007 (208.352). This resulted 
in an inflation increase of 30.0 percent.
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    \3\ Those penalties last adjusted in 2000 are authorized by 12 
U.S.C. 164 and 3110(c), Tier 1. See 65 FR 66250 (Dec. 11, 2000).
    \4\ Those penalties last adjusted in 1997 are authorized by 12 
U.S.C. 1832(c), 12 U.S.C. 3909(d)(1), and 12 U.S.C. 1884. See 62 FR 
3199 (Jan. 22, 1997).
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    We multiplied the amount of each CMP by the appropriate percentage 
inflation adjustment, added that amount to the current penalty, and 
rounded the

[[Page 66494]]

resulting dollar amount up or down according to the rounding 
requirements of the Act. In some cases, rounding resulted in no 
adjustment to the CMP. The following table shows both the present CMPs 
and the inflation adjusted CMPs. The table published in Sec.  19.240(a) 
is shorter and shows only the adjusted CMPs, not the calculations.
    Section 19.240(b) is amended, consistent with the statute, to state 
that the adjustments made in Sec.  19.240(a) apply only to violations 
that occur after the effective date of this final rule.
BILLING CODE 4810-33-P
[GRAPHIC] [TIFF OMITTED] TR10NO08.000


[[Page 66495]]



New CMP

    The OCC is adding to its list of penalties a new CMP, as authorized 
by 12 U.S.C. 1820(k).\5\ Section 1820(k) applies to senior examiners, 
or functionally equivalent positions, at a Federal banking agency or 
Federal Reserve Bank. It prohibits a senior examiner from knowingly 
accepting compensation as an employee, officer, director, or 
consultant, from certain depository institutions or depository 
institution holding companies he or she examined, or from certain 
related entities, for one year after the examiner leaves the employment 
or service of the Federal banking agency or Federal Reserve Bank. The 
statute and its implementing regulation\6\ permit the OCC to assess a 
penalty of not more than $250,000 for a violation of the one-year 
restriction. Section 1820(k) became effective on December 17, 2005.\7\ 
To adjust this CMP, we compared the CPI-U for June 2007 (208.352) with 
the CPI-U for June 2005 (194.5). This resulted in an inflation increase 
of 7.1 percent.
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    \5\ Pub. L. 108-458, Title VI, section 6303(b), 118 Stat. 3638, 
3751 (Dec. 17, 2004).
    \6\ See 12 U.S.C. 1820(k)(6)(A)(ii); 12 CFR part 4, subpart E.
    \7\ See 12 U.S.C. 1820 note and 12 CFR 4.75.
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Clarifying Change

    The OCC is revising the chart format at 12 CFR 19.240(a) to be more 
readable. The revised chart separately identifies each statute and the 
different tiers of penalties provided in each statute (as applicable) 
rather than combining multiple statutes that assess identical CMPs.

Procedural Issues

1. Notice and Comment Procedure
    Under the Administrative Procedure Act (APA), an agency may 
dispense with public notice and an opportunity for comment if the 
agency finds, for good cause, that these procedural requirements are 
impracticable, unnecessary, or contrary to the public interest. 5 
U.S.C. 553(b)(B). The Act provides the OCC no discretion in calculating 
the amount of the civil penalty adjustment. The OCC, accordingly, 
cannot vary the methodology used to calculate the adjustment or the 
amount of the adjustment to reflect any views or suggestions provided 
by commenters. For this reason, the OCC has concluded that notice and 
comment procedures are unnecessary and that good cause exists for 
dispensing with them.
2. Delayed Effective Date
    The Riegle Community Development and Regulatory Improvement Act of 
1994 requires that the effective date of new regulations and amendments 
to regulations that impose additional reporting, disclosures, or other 
new requirements on insured depository institutions shall be the first 
day of a calendar quarter that begins on or after the date the 
regulations are published in final form. See 12 U.S.C. 4802(b)(1). The 
RCDRIA does not apply to this final rule because the rule merely 
increases the amount of CMPs that already exist and does not impose any 
additional reporting, disclosures, or other new requirements.

Regulatory Flexibility Act

    The Regulatory Flexibility Act applies only to rules for which an 
agency publishes a general notice of proposed rulemaking pursuant to 5 
U.S.C. 553(b). See 5 U.S.C. 601(2). Because the OCC has determined for 
good cause that the APA does not require public notice and comment on 
this final rule, we are not publishing a general notice of proposed 
rulemaking. Thus, the Regulatory Flexibility Act does not apply to this 
final rule.

Executive Order 12866

    The OCC has determined that this final rule is not a significant 
regulatory action under Executive Order 12866.

Unfunded Mandates Reform Act of 1995

    The OCC has determined that this final rule will not result in 
expenditures by State, local, and tribal governments, or by the private 
sector, of $133 million or more in any one year.\8\ Accordingly, a 
budgetary impact statement is not required under section 202 of the 
Unfunded Mandates Reform Act of 1995. See 2 U.S.C. 1532(a).
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    \8\ The Unfunded Mandates Reform Act of 1995 sets a threshold of 
$100 million and requires that threshold to be adjusted annually for 
inflation. See 2 U.S.C. 1532(a). The OCC has calculated that the 
inflation-adjusted amount for 2009 is $133 million.
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List of Subjects in 12 CFR Part 19

    Administrative practice and procedure, Crime, Equal access to 
justice, Investigations, National banks, Penalties, Securities.

Authority and Issuance

0
For the reasons set out in the preamble, part 19 of chapter I of title 
12 of the Code of Federal Regulations is amended as follows:

PART 19--RULES OF PRACTICE AND PROCEDURE

0
1. The authority citation for part 19 continues to read as follows:

    Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 93(b), 93a, 164, 
505, 1817, 1818, 1820, 1831m, 1831o, 1972, 3102, 3108(a), 3909, and 
4717; 15 U.S.C. 78(h) and (i), 78o-4(c), 78o-5, 78q-1, 78s, 78u, 
78u-2, 78u-3, and 78w; 28 U.S.C. 2461 note; 31 U.S.C. 330 and 5321; 
and 42 U.S.C. 4012a.


0
2. Section 19.240 is revised to read as follows:


Sec.  19.240  Inflation adjustments.

    (a) The maximum amount of each civil money penalty within the OCC's 
jurisdiction is adjusted in accordance with the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) as follows:
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    (b) The adjustments in paragraph (a) of this section apply to 
violations that occur after December 10, 2008.

    Dated: October 31, 2008.
John C. Dugan,
Comptroller of the Currency.
[FR Doc. E8-26654 Filed 11-7-08; 8:45 am]
BILLING CODE 4810-33-C

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