Civil Monetary Penalty Inflation Adjustment, 57284-57289 [2015-24157]
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57284
Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Rules and Regulations
2. Paperwork Reduction Act.
The Paperwork Reduction Act of 1995
(PRA) applies to rulemakings in which
an agency by rule creates a new
paperwork burden or increases an
existing burden.4 For purposes of the
PRA, a paperwork burden may take the
form of a reporting or recordkeeping
requirement, both referred to as
information collections. This rule does
not create any new burdens or increase
any existing burdens. Therefore, a PRA
analysis is not required.
3. Executive Order 13132
Executive Order 13132 encourages
independent regulatory agencies to
consider the impact of their actions on
state and local interests. NCUA, an
independent regulatory agency as
defined in 44 U.S.C. 3502(5), voluntarily
complies with the executive order to
adhere to fundamental federalism
principles. The rule does not have
substantial direct effects on the states,
on the relationship between the national
government and the states, or on the
distribution of power and
responsibilities among the various
levels of government. NCUA has,
therefore, determined that this rule does
not constitute a policy that has
federalism implications for purposes of
the executive order.
4. Assessment of Federal Regulations
and Policies on Families
NCUA has determined that this rule
will not affect family well-being within
the meaning of section 654 of the
Treasury and General Government
Appropriations Act, 1999, Public Law
105–277, 112 Stat. 2681 (1998).
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5. Small Business Regulatory
Enforcement Fairness Act
The Small Business Regulatory
Enforcement Fairness Act of 1996
(SBREFA) provides generally for
congressional review of agency rules. A
reporting requirement is triggered in
instances where NCUA issues a final
rule as defined by Section 551 of the
Administrative Procedure Act. NCUA
does not believe this final rule is a
‘‘major rule’’ within the meaning of the
relevant sections of SBREFA. NCUA has
submitted the rule to the Office of
Management and Budget for its
determination in that regard.
4 44
U.S.C. 3507(d); 5 CFR part 1320.
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List of Subjects in 12 CFR Part 704
Credit unions, Corporate credit
unions, Reporting and recordkeeping
requirements.
Gerard Poliquin,
Secretary of the Board.
For the reasons discussed above, the
National Credit Union Administration
amends 12 CFR part 704 as follows:
PART 704—CORPORATE CREDIT
UNIONS
1. The authority citation for part 704
continues to read as follows:
■
Authority: 12 U.S.C. 1766(a), 1781, and
1789.
2. Amend § 704.2 by adding a
definition for CLF-related bridge loan in
alphabetical order and revising the
definitions of Net assets and Net riskweighted assets to read as follows:
■
§ 704.2
Definitions.
*
*
*
*
*
CLF-related bridge loan means
interim financing, extending up to ten
business days, that a corporate credit
union provides for a natural person
credit union from the time the CLF
approves a loan to the natural person
credit union until the CLF funds the
loan. To repay a CLF-related bridge
loan, the borrowing natural person
credit union assigns the proceeds of the
CLF advance to the corporate credit
union making the CLF-related bridge
loan for the duration of the bridge loan.
*
*
*
*
*
Net assets means total assets less
Central Liquidity Facility (CLF) stock
subscriptions, CLF-related bridge loans,
loans guaranteed by the National Credit
Union Share Insurance Fund (NCUSIF),
and member reverse repurchase
transactions. For its own account, a
corporate credit union’s payables under
reverse repurchase agreements and
receivables under repurchase
agreements may be netted out if the
GAAP conditions for offsetting are met.
Also, any amounts deducted in
calculating Tier 1 capital are also
deducted from net assets.
*
*
*
*
*
Net risk-weighted assets means riskweighted assets less CLF stock
subscriptions, CLF-related bridge loans,
loans guaranteed by the NCUSIF, and
member reverse repurchase
transactions. For its own account, a
corporate credit union’s payables under
reverse repurchase agreements and
receivables under repurchase
agreements may be netted out if the
GAAP conditions for offsetting are met.
Also, any amounts deducted in
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calculating Tier 1 capital are also
deducted from net risk-weighted assets.
*
*
*
*
*
■ 3. Amend § 704.7 by revising
paragraph (c)(1)(i) and revising
paragraph (d)(1) to read as follows:
§ 704.7
Lending.
*
*
*
*
*
(c) * * *
(1) * * *
(i) The maximum aggregate amount in
unsecured loans and lines of credit from
a corporate credit union to any one
member credit union, excluding CLFrelated bridge loans and pass-through
and guaranteed loans from the CLF and
the NCUSIF, must not exceed 50 percent
of the corporate credit union’s total
capital.
*
*
*
*
*
(d) * * *
(1) Credit unions. A loan to a
nonmember credit union, other than
through a loan participation with
another corporate credit union or a CLFrelated bridge loan, is only permissible
if the loan is for an overdraft related to
the providing of correspondent services
pursuant to § 704.12. Generally, such a
loan will have a maturity of one
business day.
*
*
*
*
*
[FR Doc. 2015–24160 Filed 9–22–15; 8:45 am]
BILLING CODE 7535–01–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Parts 740, 741, 747, and 796
RIN 3133–AE56
Civil Monetary Penalty Inflation
Adjustment
National Credit Union
Administration (NCUA).
ACTION: Final rule.
AGENCY:
The NCUA Board (Board) is
amending its regulations to adjust the
maximum amount of each civil
monetary penalty (CMP) within its
jurisdiction to account for inflation.
This action, including the amount of the
adjustments, is required under the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Debt Collection Improvement Act of
1996.
DATES: This rule is effective September
23, 2015.
FOR FURTHER INFORMATION CONTACT: Ian
Marenna, Trial Attorney, Office of
General Counsel, 1775 Duke Street,
Alexandria, VA 22314, or by telephone
(703) 518–6540.
SUMMARY:
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Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Rules and Regulations
SUPPLEMENTARY INFORMATION:
I. Legal Background
II. Mathematical Calculation of the
Adjustments
III. Regulatory Procedures
I. Legal Background
The Debt Collection Improvement Act
of 1996 1 (DCIA) amended the Federal
Civil Penalties Inflation Adjustment Act
of 1990 2 (FCPIA Act) to require every
federal agency to enact regulations that
adjust each CMP provided by law under
its jurisdiction by the rate of inflation at
least once every four years. These
periodic adjustments are to be
calculated pursuant to the inflation
adjustment formula in section 5(b) of
the FCPIA Act. Section 6 of the FCPIA
Act specifies that inflation-adjusted
CMPs will only apply to violations that
occur after the effective date of the
adjustment.
The inflation adjustment is based on
the percentage increase in the Consumer
Price Index for all urban customers
(CPI–U) published by the Department of
Labor.3 Specifically, section 5(b) of the
FCPIA Act defines the term ‘‘cost-ofliving adjustment’’ as ‘‘the percentage (if
any) for each civil monetary penalty by
which—(1) the Consumer Price Index
for the month of June of the calendar
year preceding the adjustment, exceeds
(2) the Consumer Price Index for the
month of June of the calendar year in
which the amount of such civil
monetary penalty was last set or
adjusted pursuant to law.’’ The amount
of each inflation adjustment must then
be rounded to a number prescribed by
section 5(a) of the FCPIA Act,
depending on the amount of the CMP.
In some cases, this rounding results in
no increase to a particular CMP
maximum amount.
II. Mathematical Calculation of the
Adjustments
A. Inflation Percentage and Penalty
Adjustment Calculations
The Board recently became aware that
NCUA last reviewed CMPs within its
jurisdiction for inflation and made
corresponding adjustments in 2009,4
and that three CMPs have not
previously been adjusted by NCUA.
This failure to adjust the CMPs within
the appropriate timeframe was
inadvertent. The Board notes, however,
that because NCUA has never assessed
any CMPs at the maximum level, this
delay has not affected any CMP assessed
by the agency.
As noted above, in this final rule, the
Board is correcting NCUA’s oversight by
reviewing and adjusting, as appropriate,
all relevant CMPs. In addition, the
Board is publishing a new maximum
amount for an existing CMP that
Congress modified in 2012. For this
CMP and the three CMPs that have not
previously been adjusted, the Board
refers to the CPI–U for June of the year
in which Congress set the amount of the
CMP. For all other CMPs, the Board
refers to the year that it last adjusted the
maximum amount.
Consistent with NCUA’s 2009 CMP
adjustments, the Board provides the
inflation calculations in a table below.
Following the table, the Board describes
the three CMPs that it is adjusting for
the first time and the CMP that Congress
modified. The table to be published at
12 CFR 747.1001 shows only the
adjusted CMPs, not the calculations.
The dollar amount in the far right
column of the table is the new
maximum for each CMP or the existing
maximum for those CMPs that NCUA is
not increasing because the rounding
procedure in the FCPIA Act results in
no increase to those maximums.
CALCULATION OF MAXIMUM CMP ADJUSTMENTS
Current
maximum
($)
Citation
Description/Tier 5
12 U.S.C. 1782(a)(3) ........................
Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report.
Non-inadvertent failure to submit a
report or the non-inadvertent
submission of a false or misleading report.
Failure to submit a report or the
submission of a false or misleading report done knowingly or
with reckless disregard.
Tier 1 CMP for inadvertent failure
to submit certified statement of
insured shares and charges due
to NCUSIF, or inadvertent submission of false or misleading
statement.
Tier 2 CMP for non-inadvertent
failure to submit certified statement or submission of false or
misleading statement.
Tier 3 CMP for failure to submit a
certified statement or the submission of a false or misleading
statement done knowingly or
with reckless disregard.
Non-compliance with insurance
logo requirements.
Non-compliance with NCUA security requirements.
12 U.S.C. 1782(a)(3) ........................
12 U.S.C. 1782(a)(3) ........................
12 U.S.C. 1782(d)(2)(A) ...................
12 U.S.C. 1782(d)(2)(B) ...................
12 U.S.C. 1782(d)(2)(C) ...................
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12 U.S.C. 1785(a)(3) ........................
12 U.S.C. 1785(e)(3) ........................
1 Public Law 104–134, section 31001(s), 110 Stat.
1321–373 (Apr. 26, 1996). The provision is codified
at 28 U.S.C. 2461 note.
2 Public Law 101–410, 104 Stat. 890 (Oct. 5,
1990), also codified at 28 U.S.C. 2461 note.
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Percentage
increase
(%) 6
Frm 00003
Adjusted
increase
($) 7
Adjusted
maximum
($)
2,200 ..................
38.3 (2000)
843
1,000
3,200.
22,000 ................
38.3 (2000)
8,426
5,000
32,000.
Lesser of
1,300,000 or
1% of total CU
assets.
2,200 ..................
10.5 (2009)
136,500
125,000
38.3 (2000)
843
1,000
Lesser of
1,425,000 or
1% of total CU
assets.
3,200.
22,000 ................
38.3 (2000)
8,426
5,000
32,000.
Lesser of
1,300,000 or
1% of total CU
assets.
10.5 (2009)
136,500
125,000
100 .....................
14.4 (2007)
14
10
110.
110 .....................
38.3 (2000)
42
0
110.
3 The CPI–U is published by the Department of
Labor, Bureau of Labor Statistics, and is available
at its Web site: https://www.bls.gov/cpi/.
4 74 FR 9349 (Mar. 4, 2009). NCUA also reviewed
CMPs for inflation and made corresponding
adjustments in 2000 and 2004. 65 FR 57277 (Sept.
PO 00000
Raw increase
($)
Fmt 4700
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Lesser of
1,425,000 or
1% of total CU
assets.
22, 2000), 69 FR 60077 (Oct. 7, 2004). All of the
CMPs that were increased in 2004 were also
increased in 2009. Because of the rounding
procedure, not all CMPs that are reviewed for
inflation are increased.
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Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Rules and Regulations
CALCULATION OF MAXIMUM CMP ADJUSTMENTS—Continued
Current
maximum
($)
Citation
Description/Tier 5
12 U.S.C. 1786(k)(2)(A) ...................
Tier 1 CMP for violations of law,
regulation, and other orders or
agreements.
Tier 2 CMP for violations of law,
regulation, and other orders or
agreements and for recklessly
engaging in unsafe or unsound
practices or breaches of fiduciary duty.
Tier 3 CMP for knowingly committing the violations under Tier 1
or 2 (natural person).
Tier 3 (same) (CU) .........................
12 U.S.C. 1786(k)(2)(B) ...................
12 U.S.C. 1786(k)(2)(C) ...................
12 U.S.C. 1786(k)(2)(C) ...................
12 U.S.C. 1786(w)(5)(A)(ii) ..............
15 U.S.C. 1639e(k) ..........................
15 U.S.C. 1639e(k) ..........................
42 U.S.C. 4012a(f)(5) .......................
Non-compliance with senior examiner post-employment restrictions.
Non-compliance with appraisal
independence standards (first
violation).
Subsequent violations of the same
Non-compliance with flood insurance requirements.
Percentage
increase
(%) 6
10.5 (2009)
788
1,000
8,500.
37,500 ................
10.5 (2009)
3,938
5,000
42,500.
1,375,000 ...........
10.5 (2009)
144,375
150,000
1,525,000.
Lesser of
1,375,000 or
1% of total CU
assets.
250,000 ..............
10.5 (2009)
144,375
150,000
22.5 (2005)
56,250
25,000
Lesser of
1,525,000 or
1% of total CU
assets.
275,000.
10,000 ................
5.6 (2011)
560
1,000
11,000.
20,000 ................
2,000 ..................
5.6 (2011)
2.9 (2012)
1,120
78
0
0
20,000.
2,000.
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Below, the Board describes the three
CMPs that NCUA is reviewing for
adjustment for the first time and the
additional CMP that Congress changed
in 2012. The Board does not describe
the other CMPs included in the table
above, as NCUA reviewed all of the
other CMPs for inflation in 2009 and
made adjustments as appropriate under
the rounding procedure.
5 The table uses shorthand descriptions of CMP
tiers. Refer to the U.S. Code citations for complete
descriptions.
6 The year that NCUA last adjusted the CMP or
that Congress set it is shown in parentheses. With
the exception of 12 U.S.C. 1785(a)(3), 12 U.S.C.
1786(w)(5)(A)(ii), and 15 U.S.C. 1639e(k), NCUA
reviewed all of the CMPs in the table for inflation
in 2009. The rounding procedure described in the
next footnote resulted in some of these CMPs
remaining at the same level. The year in
parentheses is the last year the maximum CMP was
actually increased, or, for 15 U.S.C. 1639e(k) and 42
U.S.C. 4012a(f)(5), the year that Congress set the
maximum CMP amounts. The percentage change
used in this column to determine the raw increase
in each CMP is the difference between the June
2014 CPI–U (238.343) and the CPI–U for June of the
relevant year noted in parentheses, divided by the
CPI–U for June of the relevant year. The CPI–U
figures are available at https://www.bls.gov/cpi/.
7 The FCPIA Act’s rounding rules require that an
increase of a CMP 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. Section 5(a) of the FCPIA
Act, 28 U.S.C. 2461 note. Also, the first adjustment
of any penalty is limited to 10 percent of the
maximum penalty amount. Public Law 104–134,
§ 31001(s)(2), codified at 28 U.S.C. 2461 note. The
10 percent cap only affects the increase of the CMP
under 12 U.S.C. 1786(w)(5)(A)(ii).
1. 12 U.S.C. 1785(a)(3)
Federally insured credit unions must
display signs relating to the insurance of
share accounts.8 Under the Federal
Credit Union Act, the Board may
impose a penalty of $100 for each day
that a federally insured credit union
violates this requirement or the Board’s
implementing regulations.9 The Board
has prescribed regulations on this
subject.10 Congress added this penalty
to the Federal Credit Union Act in
2006,11 but it was not effective until
2007.12
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2. 12 U.S.C. 1786(w)(5)(A)(ii)
Congress amended the Federal Credit
Union Act in 2004 to impose post8 12
U.S.C. 1785(a)(1).
U.S.C. 1785(a)(3).
10 12 CFR 740.4.
11 Public Law 109–173, section 2, 119 Stat. 3604–
605 (Feb. 15, 2006).
12 Congress set the effective date for section 2 of
Public Law 109–173, including the penalty
provision, as the date on which the final regulations
required by section 2109(a)(2) of the Federal
Insurance Reform Act of 2005 took effect. Id.
Section 2(e). These regulations took effect on
January 1, 2007. 71 FR 69323–01 (Nov. 30, 2006).
Accordingly, the Board refers to the CPI–U for June
2007 to adjust this CMP for inflation.
9 12
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Adjusted
maximum
($)
Adjusted
increase
($) 7
7,500 ..................
B. Description of Initial Adjustments
and Modified CMP
NCUA recently determined that three
penalties that it has not previously
adjusted for inflation meet the
definition of CMPs. Also, Congress has
changed the amount and structure of
one additional penalty that the Board
has previously adjusted for inflation.
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Raw increase
($)
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NCUA employment restrictions on
NCUA senior examiners.13 The
provision authorizes the Board to
impose a CMP of not more than
$250,000 in an administrative
proceeding or civil action against former
NCUA senior examiners who violate
conflict-of-interest restrictions that
apply to their post-NCUA
employment.14 The Board has
prescribed regulations to implement
these restrictions and is making a
conforming amendment to the penalty
amount set forth in that part.15
3. 15 U.S.C. 1639e(k)
The Dodd-Frank Wall Street Reform
and Consumer Protection Act 16
13 Public Law 108–458, section 6303(c), 118 Stat.
3753–754 (Dec. 17, 2004). Section 6303(d) stated
that this provision would take effect at the end of
the 12-month period following its enactment. The
public law was enacted on December 17, 2004, so
the CMP became effective in 2005. The Board uses
the June 2005 CPI–U to adjust this CMP for
inflation.
14 12 U.S.C. 1785(w)(5)(A)(ii).
15 12 CFR 796.5.
16 Public L.aw 111–203, title XIV, section 1472(a),
124 Stat. 2187–190 (Jul. 21, 2010). Title XIV,
Section 1400(c) stated that any section or provision
of that title would become effective once the
regulation implementing the section or provision
became effective. On October 28, 2010, the Board
of Governors of the Federal Reserve System
published an interim final rule to implement the
appraisal independence section, as required by 15
U.S.C. 1639e(g)(2). 75 FR 66554 (Oct. 28, 2010). The
interim final rule had an effective date of December
27, 2010. Compliance with the new standards,
however, was optional until April 2011, which
means that the Board and other agencies could not
have imposed a penalty for violating this law before
2011. Therefore, the Board refers to the June 2011
CPI–U to adjust this CMP for inflation.
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Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Rules and Regulations
amended the Truth in Lending Act to
establish independence standards for
property appraisals. The provision
authorizes the Board and other federal
agencies to assess a civil penalty against
persons who violate regulations
implementing this law.17
4. 42 U.S.C. 4012a(f)(5)
The Board is authorized to impose
CMPs against a credit union that is
found to have a pattern or practice of
committing certain specified actions in
violation of the National Flood
Insurance Program. The Board first
adjusted this CMP for inflation in
2000.18 At that time, 42 U.S.C.
4012a(f)(5) authorized a $350 penalty
for each violation, subject to an annual
cap of $100,000. The Board also
adjusted this CMP for inflation in
2004 19 and 2009.20 Congress amended
this CMP in 2012 to increase the amount
per violation to $2,000 and eliminate
the annual cap.21 NCUA’s calculation of
inflation results in no increase to this
modified CMP, but the Board includes
this description to explain that the CMP
has changed.
C. Conforming Amendments
The Board is also making conforming
amendments to other parts of NCUA’s
regulations that state a specific
maximum dollar amount for a CMP.22
The final rule replaces the current
specific dollar amounts with a nonnumerical reference to the inflationadjusted maximum amounts table at 12
CFR 747.1001.
III. Regulatory Procedures
A. Final Rule Under the Administrative
Procedure Act
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The FCPIA Act requires adjustments
of CMPs for inflation to occur at least
every four years. Federal agencies have
no discretion in calculating the
adjustments. Thus, the Board cannot
vary the amount of the adjustments to
reflect any views or suggestions
submitted by commenters. Further, the
regulation is ministerial and technical.
For all these reasons, public notice and
comment for this new regulation is
unnecessary, impracticable, and
17 15 U.S.C. 1639e(k) refers to 15 U.S.C. 1607(a),
which authorizes the Board to enforce the appraisal
independence requirements, among other
provisions.
18 65 FR 57277 (Sept. 22, 2000).
19 69 FR 60077 (Oct. 7, 2004).
20 74 FR 9349 (Mar. 4, 2009).
21 Public Law 112–141, section 100208, 126 Stat.
919 (Jul. 6, 2012). The Board refers to the June 2012
CPI–U to adjust this CMP because Congress set the
modified CMP in 2012.
22 12 CFR 740.4(f); 12 CFR 741.4(k)(4)(i); 12 CFR
796.5(a)(2).
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contrary to the public interest under the
Administrative Procedure Act (APA).23
For the same reasons, there is no good
cause to impose a 30-day delayed
effective date requirement under the
APA.24
B. Regulatory Flexibility Act
The Regulatory Flexibility Act
requires the Board to prepare an
analysis to describe any significant
economic impact a regulation may have
on a substantial number of small
entities.25 For purposes of this analysis,
the Board considers small credit unions
to be those having under $50 million in
assets.26 This final rule would not have
a significant economic impact on a
substantial number of small credit
unions because it only affects the
maximum amounts of CMPs that may be
assessed in individual cases, which are
not numerous and generally do not
involve assessments at the maximum
level. In addition, several of the CMPs
are limited to a percentage of a credit
union’s assets. Finally, in assessing
CMPs, the Board generally must
consider a party’s financial resources.27
Because this final rule would affect few,
if any, small entities, the Board certifies
that the final rule will not have a
significant economic impact on small
entities.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA) applies to rulemakings in which
an agency creates a new paperwork
burden on regulated entities or modifies
an existing burden.28 For purposes of
the PRA, a paperwork burden may take
the form of either a reporting or a
recordkeeping requirement, both
referred to as information collections.
This final rule adjusts the maximum
amounts of certain CMPs that the Board
may assess against individuals, entities,
or credit unions but does not require
any reporting or recordkeeping.
Therefore, this final rule will not create
new paperwork burdens or modify any
existing paperwork burdens.
D. Executive Order 13132
Executive Order 13132 encourages
independent regulatory agencies to
consider the impact of their actions on
state and local interests. In adherence to
fundamental federalism principles,
23 5
U.S.C. 553(b)(3)(B).
24 5 U.S.C. 553(d)(3).
25 5 U.S.C. 603(a).
26 Interpretive Ruling and Policy Statement 03–2,
68 FR 31949 (May 29, 2003), as amended by
Interpretive Ruling and Policy Statement 13–1, 78
FR 4032 (Jan. 18, 2013).
27 12 U.S.C. 1786(k)(2)(G)(i).
28 44 U.S.C. 3507(d); 5 CFR part 1320.
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57287
NCUA, an independent regulatory
agency as defined in 44 U.S.C. 3502(5),
voluntarily complies with the executive
order. This final rule adjusts the
maximum amounts of certain CMPs that
the Board may assess against
individuals, entities, and federally
insured credit unions, including statechartered credit unions. However, the
final rule does not create any new
authority or alter the underlying
statutory authorities that enable the
Board to assess CMPs. Accordingly, this
rule will not have a substantial direct
effect on the states, on the connection
between the national government and
the states, or on the distribution of
power and responsibilities among the
various levels of government. The Board
has determined this rule does not
constitute a policy that has federalism
implications for purposes of the
executive order.
E. Assessment of Federal Regulations
and Policies on Families
The Board has determined that this
final rule will not affect family wellbeing within the meaning of Section 654
of the Treasury and General
Government Appropriations Act,
1999.29
F. Small Business Regulatory
Enforcement Fairness Act
The Small Business Regulatory
Enforcement Fairness Act of 1996 30
(SBREFA) provides generally for
congressional review of agency rules. A
reporting requirement is triggered in
instances where the Board issues a final
rule as defined by Section 551 of the
Administrative Procedure Act.31 The
Office of Management and Budget has
determined that this final rule is not a
‘‘major rule’’ within the meaning of the
relevant sections of SBREFA.
List of Subjects
12 CFR Part 740
Advertisements, Credit unions.
12 CFR Part 741
Credit, Credit unions, Reporting and
recordkeeping requirements, Share
insurance.
12 CFR Part 747
Credit unions, Civil monetary
penalties.
29 Public Law 105–277, 112 Stat. 2681 (Oct. 21,
1998).
30 Public Law 104–121, 110 Stat. 857 (Mar. 29,
1996).
31 5 U.S.C. 551.
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Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Rules and Regulations
12 CFR Part 796
Conflicts of interest, Credit unions,
Ethical conduct, Government
employees.
official sign, 12 U.S.C. 1785(a), or any
requirement in this part is subject to a
daily penalty in the amount set forth in
§ 747.1001 of this chapter.
PART 747—ADMINISTRATIVE
ACTIONS, ADJUDICATIVE HEARINGS,
RULES OF PRACTICE AND
PROCEDURE, AND INVESTIGATIONS
By the National Credit Union
Administration Board on September 17,
2015.
Gerard S. Poliquin,
Secretary of the Board.
PART 741—REQUIREMENTS FOR
INSURANCE
■
3. The authority citation for part 741
continues to read as follows:
■
For the reasons stated above, the
NCUA Board amends 12 CFR parts 740,
741, 747, and 796 as follows:
PART 740—ACCURACY OF
ADVERTISING AND NOTICE OF
INSURED STATUS
4. In § 741.4, paragraph (k)(4)(i) is
revised to read as follows:
■
§ 741.4 Insurance premium and one
percent deposit.
*
1. The authority citation for part 740
continues to read as follows:
■
Authority: 12 U.S.C. 1766, 1781, 1785, and
1789.
2. In § 740.4, paragraph (f) is revised
to read as follows:
■
§ 740.4
Authority: 12 U.S.C. 1757, 1766(a), 1781–
1790, and 1790d; 31 U.S.C. 3717.
Requirements for the official sign.
*
*
*
*
*
(f) An insured credit union that fails
to comply with Section 205(a) of the
Federal Credit Union Act regarding the
*
*
*
*
(k) * * *
(4) * * *
(i) Section 202(d)(2)(B) of the Act (12
U.S.C. 1782(d)(2)(B)) provides that the
Board may assess and collect a penalty
from an insured credit union, up to the
amount specified in § 747.1001 of this
chapter, for each day the credit union
fails or refuses to pay any deposit or
premium due to the fund; and
*
*
*
*
*
5. The authority for part 747 is revised
to read as follows:
Authority: 12 U.S.C. 1766, 1782, 1784,
1785, 1786, 1787, 1790a, 1790d; 15 U.S.C.
1639e; 42 U.S.C. 4012a; Pub. L. 101–410;
Pub. L. 104–134; Pub. L. 109–351; 120 Stat.
1966.
6. Section 747.1001 is revised to read
as follows:
■
§ 747.1001 Adjustment of civil monetary
penalties by the rate of inflation.
(a) NCUA is required by the Federal
Civil Penalties Inflation Adjustment Act
of 1990 (Pub. L. 101–410, 104 Stat. 890,
as amended (28 U.S.C. 2461 note)) to
adjust the maximum amount of each
civil monetary penalty within its
jurisdiction by the rate of inflation. The
following chart displays those
adjustments, as calculated pursuant to
the statute:
U.S. Code citation
CMP description
(1) 12 U.S.C. 1782(a)(3) .................
Inadvertent failure to submit a report or the inadvertent submission of
a false or misleading report.
Non-inadvertent failure to submit a report or the non-inadvertent submission of a false or misleading report.
Failure to submit a report or the submission of a false or misleading
report done knowingly or with reckless disregard.
(2) 12 U.S.C. 1782(a)(3) .................
(3) 12 U.S.C. 1782(a)(3) .................
(4) 12 U.S.C. 1782(d)(2)(A) ............
(5) 12 U.S.C. 1782(d)(2)(B) ............
(6) 12 U.S.C. 1782(d)(2)(C) ............
(7) 12 U.S.C. 1785(a)(3) .................
(8) 12 U.S.C. 1785(e) (3) ................
(9) 12 U.S.C. 1786(k)(2)(A) ............
(10) 12 U.S.C. 1786(k)(2)(A) ..........
(11) 12 U.S.C. 1786(k)(2)(A) ..........
New maximum amount
Tier 1 CMP for inadvertent failure to submit certified statement of insured shares and charges due to NCUSIF, or inadvertent submission of false or misleading statement.
Tier 2 CMP for non-inadvertent failure to submit certified statement or
submission of false or misleading statement.
Tier 3 CMP for failure to submit a certified statement or the submission of a false or misleading statement done knowingly or with
reckless disregard.
Non-compliance with insurance logo requirements ..............................
Non-compliance with NCUA security requirements ..............................
Tier 1 CMP for violations of law, regulation, and other orders or
agreements.
Tier 2 CMP for violations of law, regulation, and other orders or
agreements and for recklessly engaging in unsafe or unsound
practices or breaches of fiduciary duty.
Tier 3 CMP for knowingly committing the violations under Tier 1 or 2
(natural person).
mstockstill on DSK4VPTVN1PROD with RULES
(12) 12 U.S.C. 1786(w)(5)(ii) ..........
(13) 15 U.S.C. 1639e(k) ..................
Non-compliance with senior examiner post-employment restrictions ...
Non-compliance with appraisal independence requirements ................
(14) 42 U.S.C. 4012a(f)(5) ..............
Non-compliance with flood insurance requirements .............................
VerDate Sep<11>2014
16:11 Sep 22, 2015
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PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
E:\FR\FM\23SER1.SGM
$3,200.
$32,000.
$1,425,000 or 1 percent of the
total assets of the credit union,
whichever is less.
$3,200.
$32,000.
$1,425,000 or 1 percent of the
total assets of the credit union,
whichever is less.
$110.
$110.
$8,500.
$42,500.
For a person other than an insured credit union: $1,525,000;
For an insured credit union:
$1,525,000 or 1 percent of the
total assets of the credit union,
whichever is less.
$275,000.
First violation: $11,000 Subsequent violations: $20,000.
$2,000.
23SER1
Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Rules and Regulations
(b) The adjustments displayed in
paragraph (a) of this section apply to
acts occurring after the date of
publication in the Federal Register.
PART 796—POST-EMPLOYMENT
RESTRICTIONS FOR CERTAIN NCUA
EXAMINERS
7. The authority citation for part 796
continues to read as follows:
■
Authority: 12 U.S.C. 1786(w).
8. In § 796.5, paragraph (a)(2) is
revised to read as follows:
■
§ 796.5 What are the penalties for violating
these special post-employment
restrictions?
(a) * * *
(2) Assessed a civil monetary penalty
up to the amount specified in
§ 747.1001 of this chapter.
*
*
*
*
*
[FR Doc. 2015–24157 Filed 9–22–15; 8:45 am]
BILLING CODE 7535–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 23
[Docket No. FAA–2015–3881; Special
Conditions No. 23–267–SC]
Special Conditions: Cirrus Design
Corporation, SF50; Full Authority
Digital Engine Control (FADEC)
System
Federal Aviation
Administration (FAA), DOT.
ACTION: Final special conditions; request
for comments.
AGENCY:
These special conditions are
issued for the Cirrus Design Corporation
SF50 airplane. This airplane will have
a novel or unusual design feature(s)
associated with the use of an electronic
engine control system instead of a
traditional mechanical control system.
The applicable airworthiness
regulations do not contain adequate or
appropriate safety standards for this
design feature. These special conditions
contain the additional safety standards
that the Administrator considers
necessary to establish a level of safety
equivalent to that established by the
existing airworthiness standards.
DATES: The effective date of these
special conditions is September 23,
2015.
We must receive your comments by
October 23, 2015.
ADDRESSES: Send comments identified
by docket number FAA–2015–3881
using any of the following methods:
mstockstill on DSK4VPTVN1PROD with RULES
SUMMARY:
VerDate Sep<11>2014
16:11 Sep 22, 2015
Jkt 235001
• Federal eRegulations Portal: Go to
https://www.regulations.gov and follow
the online instructions for sending your
comments electronically.
• Mail: Send comments to Docket
Operations, M–30, U.S. Department of
Transportation (DOT), 1200 New Jersey
Avenue SE., Room W12–140, West
Building Ground Floor, Washington,
DC, 20590–0001.
• Hand Delivery of Courier: Take
comments to Docket Operations in
Room W12–140 of the West Building
Ground Floor at 1200 New Jersey
Avenue SE., Washington, DC, between 9
a.m., and 5 p.m., Monday through
Friday, except Federal holidays.
• Fax: Fax comments to Docket
Operations at 202–493–2251.
Privacy: The FAA will post all
comments it receives, without change,
to https://regulations.gov, including any
personal information the commenter
provides. Using the search function of
the docket Web site, anyone can find
and read the electronic form of all
comments received into any FAA
docket, including the name of the
individual sending the comment (or
signing the comment for an association,
business, labor union, etc.). DOT’s
complete Privacy Act Statement can be
found in the Federal Register published
on April 11, 2000 (65 FR 19477–19478),
as well as at https://DocketsInfo.dot.gov.
Docket: Background documents or
comments received may be read at
https://www.regulations.gov at any time.
Follow the online instructions for
accessing the docket or go to the Docket
Operations in Room W12–140 of the
West Building Ground Floor at 1200
New Jersey Avenue SE., Washington,
DC, between 9 a.m., and 5 p.m., Monday
through Friday, except Federal holidays.
Jeff
Pretz, Federal Aviation Administration,
Small Airplane Directorate, ACE–111,
901 Locust, Room 301, Kansas City, MO
64106; telephone (816) 329–3239;
facsimile (816) 329–4090.
FOR FURTHER INFORMATION CONTACT:
The FAA
has determined, in accordance with 5
U.S.C. 553(b)(3)(B) and 553(d)(3), that
notice and opportunity for prior public
comment hereon are unnecessary
because the substance of these special
conditions has been subject to the
public comment process in several prior
instances with no substantive comments
received. The FAA therefore finds that
good cause exists for making these
special conditions effective upon
issuance.
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
Special condition number
23–237–SC
23–246–SC
23–253–SC
57289
Company/airplane model
Spectrum Aeronautical Model
S–40.
Cirrus Design Corporation
Model SF50.
Diamond Aircraft Industries
Model DA–40NG.
Comments Invited
We invite interested people to take
part in this rulemaking by sending
written comments, data, or views. The
most helpful comments reference a
specific portion of the special
conditions, explain the reason for any
recommended change, and include
supporting data. We ask that you send
us two copies of written comments.
We will consider all comments we
receive on or before the closing date for
comments. We will consider comments
filed late if it is possible to do so
without incurring expense or delay. We
may change these special conditions
based on the comments we receive.
Background
On September 9, 2008, Cirrus Design
Corporation applied for a type
certificate for their new Model SF50. On
December 11, 2012, Cirrus Design
Corporation requested to revise the
SF50 part 23 certification basis to
include amendment 23–62. The Cirrus
Design Corporation SF50 is a low-wing,
seven-seat, single-engine turbofanpowered airplane. It incorporates an
Electronic Flight Information System
(EFIS), pressurized cabin, retractable
gear, and a V-tail. The turbofan engine
is mounted on the upper fuselage/tail
cone along the aircraft centerline. It is
constructed largely of carbon and
fiberglass composite materials. Like
other Cirrus products, the SF50 includes
an airframe ballistic parachute system.
The model SF50 has a maximum
operating altitude of 28,000 feet, where
it cruises at speeds up to 300 knots true
airspeed. Its maximum operating limit
speed (VMO) will not exceed 0.62 Mach.
The maximum takeoff weight will be at
or below 6,000 pounds with a range at
economy cruise of roughly 1,000
nautical miles. Cirrus intends for the
SF50 to be certified for single-pilot
operations under 14 CFR parts 91 and
135 operating rules. The following
operating conditions will be included:
• Day and Night VFR
• IFR
• Flight Into Known Icing
The Cirrus Design Corporation SF50
airplane is equipped with a Williams
International FJ33–5A turbofan engine,
which uses an Electronic Engine Control
E:\FR\FM\23SER1.SGM
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]]>Agencies
[Federal Register Volume 80, Number 184 (Wednesday, September 23, 2015)]
[Rules and Regulations]
[Pages 57284-57289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24157]
-----------------------------------------------------------------------
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Parts 740, 741, 747, and 796
RIN 3133-AE56
Civil Monetary Penalty Inflation Adjustment
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The NCUA Board (Board) is amending its regulations to adjust
the maximum amount of each civil monetary penalty (CMP) within its
jurisdiction to account for inflation. This action, including the
amount of the adjustments, is required under the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Debt
Collection Improvement Act of 1996.
DATES: This rule is effective September 23, 2015.
FOR FURTHER INFORMATION CONTACT: Ian Marenna, Trial Attorney, Office of
General Counsel, 1775 Duke Street, Alexandria, VA 22314, or by
telephone (703) 518-6540.
[[Page 57285]]
SUPPLEMENTARY INFORMATION:
I. Legal Background
II. Mathematical Calculation of the Adjustments
III. Regulatory Procedures
I. Legal Background
The Debt Collection Improvement Act of 1996 \1\ (DCIA) amended the
Federal Civil Penalties Inflation Adjustment Act of 1990 \2\ (FCPIA
Act) to require every federal agency to enact regulations that adjust
each CMP provided by law under its jurisdiction by the rate of
inflation at least once every four years. These periodic adjustments
are to be calculated pursuant to the inflation adjustment formula in
section 5(b) of the FCPIA Act. Section 6 of the FCPIA Act specifies
that inflation-adjusted CMPs will only apply to violations that occur
after the effective date of the adjustment.
---------------------------------------------------------------------------
\1\ Public Law 104-134, section 31001(s), 110 Stat. 1321-373
(Apr. 26, 1996). The provision is codified at 28 U.S.C. 2461 note.
\2\ Public Law 101-410, 104 Stat. 890 (Oct. 5, 1990), also
codified at 28 U.S.C. 2461 note.
---------------------------------------------------------------------------
The inflation adjustment is based on the percentage increase in the
Consumer Price Index for all urban customers (CPI-U) published by the
Department of Labor.\3\ Specifically, section 5(b) of the FCPIA Act
defines the term ``cost-of-living adjustment'' as ``the percentage (if
any) for each civil monetary penalty by which--(1) the Consumer Price
Index for the month of June of the calendar year preceding the
adjustment, exceeds (2) the Consumer Price Index for the month of June
of the calendar year in which the amount of such civil monetary penalty
was last set or adjusted pursuant to law.'' The amount of each
inflation adjustment must then be rounded to a number prescribed by
section 5(a) of the FCPIA Act, depending on the amount of the CMP. In
some cases, this rounding results in no increase to a particular CMP
maximum amount.
---------------------------------------------------------------------------
\3\ The CPI-U is published by the Department of Labor, Bureau of
Labor Statistics, and is available at its Web site: https://www.bls.gov/cpi/.
---------------------------------------------------------------------------
II. Mathematical Calculation of the Adjustments
A. Inflation Percentage and Penalty Adjustment Calculations
The Board recently became aware that NCUA last reviewed CMPs within
its jurisdiction for inflation and made corresponding adjustments in
2009,\4\ and that three CMPs have not previously been adjusted by NCUA.
This failure to adjust the CMPs within the appropriate timeframe was
inadvertent. The Board notes, however, that because NCUA has never
assessed any CMPs at the maximum level, this delay has not affected any
CMP assessed by the agency.
---------------------------------------------------------------------------
\4\ 74 FR 9349 (Mar. 4, 2009). NCUA also reviewed CMPs for
inflation and made corresponding adjustments in 2000 and 2004. 65 FR
57277 (Sept. 22, 2000), 69 FR 60077 (Oct. 7, 2004). All of the CMPs
that were increased in 2004 were also increased in 2009. Because of
the rounding procedure, not all CMPs that are reviewed for inflation
are increased.
---------------------------------------------------------------------------
As noted above, in this final rule, the Board is correcting NCUA's
oversight by reviewing and adjusting, as appropriate, all relevant
CMPs. In addition, the Board is publishing a new maximum amount for an
existing CMP that Congress modified in 2012. For this CMP and the three
CMPs that have not previously been adjusted, the Board refers to the
CPI-U for June of the year in which Congress set the amount of the CMP.
For all other CMPs, the Board refers to the year that it last adjusted
the maximum amount.
Consistent with NCUA's 2009 CMP adjustments, the Board provides the
inflation calculations in a table below. Following the table, the Board
describes the three CMPs that it is adjusting for the first time and
the CMP that Congress modified. The table to be published at 12 CFR
747.1001 shows only the adjusted CMPs, not the calculations. The dollar
amount in the far right column of the table is the new maximum for each
CMP or the existing maximum for those CMPs that NCUA is not increasing
because the rounding procedure in the FCPIA Act results in no increase
to those maximums.
Calculation of Maximum CMP Adjustments
--------------------------------------------------------------------------------------------------------------------------------------------------------
Percentage Adjusted
Citation Description/Tier \5\ Current maximum ($) increase (%) Raw increase increase ($) Adjusted maximum ($)
\6\ ($) \7\
--------------------------------------------------------------------------------------------------------------------------------------------------------
12 U.S.C. 1782(a)(3)............. Inadvertent failure to 2,200............... 38.3 (2000) 843 1,000 3,200.
submit a report or the
inadvertent submission
of a false or misleading
report.
12 U.S.C. 1782(a)(3)............. Non-inadvertent failure 22,000.............. 38.3 (2000) 8,426 5,000 32,000.
to submit a report or
the non-inadvertent
submission of a false or
misleading report.
12 U.S.C. 1782(a)(3)............. Failure to submit a Lesser of 1,300,000 10.5 (2009) 136,500 125,000 Lesser of 1,425,000
report or the submission or 1% of total CU or 1% of total CU
of a false or misleading assets. assets.
report done knowingly or
with reckless disregard.
12 U.S.C. 1782(d)(2)(A).......... Tier 1 CMP for 2,200............... 38.3 (2000) 843 1,000 3,200.
inadvertent failure to
submit certified
statement of insured
shares and charges due
to NCUSIF, or
inadvertent submission
of false or misleading
statement.
12 U.S.C. 1782(d)(2)(B).......... Tier 2 CMP for non- 22,000.............. 38.3 (2000) 8,426 5,000 32,000.
inadvertent failure to
submit certified
statement or submission
of false or misleading
statement.
12 U.S.C. 1782(d)(2)(C).......... Tier 3 CMP for failure to Lesser of 1,300,000 10.5 (2009) 136,500 125,000 Lesser of 1,425,000
submit a certified or 1% of total CU or 1% of total CU
statement or the assets. assets.
submission of a false or
misleading statement
done knowingly or with
reckless disregard.
12 U.S.C. 1785(a)(3)............. Non-compliance with 100................. 14.4 (2007) 14 10 110.
insurance logo
requirements.
12 U.S.C. 1785(e)(3)............. Non-compliance with NCUA 110................. 38.3 (2000) 42 0 110.
security requirements.
[[Page 57286]]
12 U.S.C. 1786(k)(2)(A).......... Tier 1 CMP for violations 7,500............... 10.5 (2009) 788 1,000 8,500.
of law, regulation, and
other orders or
agreements.
12 U.S.C. 1786(k)(2)(B).......... Tier 2 CMP for violations 37,500.............. 10.5 (2009) 3,938 5,000 42,500.
of law, regulation, and
other orders or
agreements and for
recklessly engaging in
unsafe or unsound
practices or breaches of
fiduciary duty.
12 U.S.C. 1786(k)(2)(C).......... Tier 3 CMP for knowingly 1,375,000........... 10.5 (2009) 144,375 150,000 1,525,000.
committing the
violations under Tier 1
or 2 (natural person).
12 U.S.C. 1786(k)(2)(C).......... Tier 3 (same) (CU)....... Lesser of 1,375,000 10.5 (2009) 144,375 150,000 Lesser of 1,525,000
or 1% of total CU or 1% of total CU
assets. assets.
12 U.S.C. 1786(w)(5)(A)(ii)...... Non-compliance with 250,000............. 22.5 (2005) 56,250 25,000 275,000.
senior examiner post-
employment restrictions.
15 U.S.C. 1639e(k)............... Non-compliance with 10,000.............. 5.6 (2011) 560 1,000 11,000.
appraisal independence
standards (first
violation).
15 U.S.C. 1639e(k)............... Subsequent violations of 20,000.............. 5.6 (2011) 1,120 0 20,000.
the same.
42 U.S.C. 4012a(f)(5)............ Non-compliance with flood 2,000............... 2.9 (2012) 78 0 2,000.
insurance requirements.
--------------------------------------------------------------------------------------------------------------------------------------------------------
B. Description of Initial Adjustments and Modified CMP
NCUA recently determined that three penalties that it has not
previously adjusted for inflation meet the definition of CMPs. Also,
Congress has changed the amount and structure of one additional penalty
that the Board has previously adjusted for inflation. Below, the Board
describes the three CMPs that NCUA is reviewing for adjustment for the
first time and the additional CMP that Congress changed in 2012. The
Board does not describe the other CMPs included in the table above, as
NCUA reviewed all of the other CMPs for inflation in 2009 and made
adjustments as appropriate under the rounding procedure.
---------------------------------------------------------------------------
\5\ The table uses shorthand descriptions of CMP tiers. Refer to
the U.S. Code citations for complete descriptions.
\6\ The year that NCUA last adjusted the CMP or that Congress
set it is shown in parentheses. With the exception of 12 U.S.C.
1785(a)(3), 12 U.S.C. 1786(w)(5)(A)(ii), and 15 U.S.C. 1639e(k),
NCUA reviewed all of the CMPs in the table for inflation in 2009.
The rounding procedure described in the next footnote resulted in
some of these CMPs remaining at the same level. The year in
parentheses is the last year the maximum CMP was actually increased,
or, for 15 U.S.C. 1639e(k) and 42 U.S.C. 4012a(f)(5), the year that
Congress set the maximum CMP amounts. The percentage change used in
this column to determine the raw increase in each CMP is the
difference between the June 2014 CPI-U (238.343) and the CPI-U for
June of the relevant year noted in parentheses, divided by the CPI-U
for June of the relevant year. The CPI-U figures are available at
https://www.bls.gov/cpi/.
\7\ The FCPIA Act's rounding rules require that an increase of a
CMP 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. Section 5(a)
of the FCPIA Act, 28 U.S.C. 2461 note. Also, the first adjustment of
any penalty is limited to 10 percent of the maximum penalty amount.
Public Law 104-134, Sec. 31001(s)(2), codified at 28 U.S.C. 2461
note. The 10 percent cap only affects the increase of the CMP under
12 U.S.C. 1786(w)(5)(A)(ii).
---------------------------------------------------------------------------
1. 12 U.S.C. 1785(a)(3)
Federally insured credit unions must display signs relating to the
insurance of share accounts.\8\ Under the Federal Credit Union Act, the
Board may impose a penalty of $100 for each day that a federally
insured credit union violates this requirement or the Board's
implementing regulations.\9\ The Board has prescribed regulations on
this subject.\10\ Congress added this penalty to the Federal Credit
Union Act in 2006,\11\ but it was not effective until 2007.\12\
---------------------------------------------------------------------------
\8\ 12 U.S.C. 1785(a)(1).
\9\ 12 U.S.C. 1785(a)(3).
\10\ 12 CFR 740.4.
\11\ Public Law 109-173, section 2, 119 Stat. 3604-605 (Feb. 15,
2006).
\12\ Congress set the effective date for section 2 of Public Law
109-173, including the penalty provision, as the date on which the
final regulations required by section 2109(a)(2) of the Federal
Insurance Reform Act of 2005 took effect. Id. Section 2(e). These
regulations took effect on January 1, 2007. 71 FR 69323-01 (Nov. 30,
2006). Accordingly, the Board refers to the CPI-U for June 2007 to
adjust this CMP for inflation.
---------------------------------------------------------------------------
2. 12 U.S.C. 1786(w)(5)(A)(ii)
Congress amended the Federal Credit Union Act in 2004 to impose
post-NCUA employment restrictions on NCUA senior examiners.\13\ The
provision authorizes the Board to impose a CMP of not more than
$250,000 in an administrative proceeding or civil action against former
NCUA senior examiners who violate conflict-of-interest restrictions
that apply to their post-NCUA employment.\14\ The Board has prescribed
regulations to implement these restrictions and is making a conforming
amendment to the penalty amount set forth in that part.\15\
---------------------------------------------------------------------------
\13\ Public Law 108-458, section 6303(c), 118 Stat. 3753-754
(Dec. 17, 2004). Section 6303(d) stated that this provision would
take effect at the end of the 12-month period following its
enactment. The public law was enacted on December 17, 2004, so the
CMP became effective in 2005. The Board uses the June 2005 CPI-U to
adjust this CMP for inflation.
\14\ 12 U.S.C. 1785(w)(5)(A)(ii).
\15\ 12 CFR 796.5.
---------------------------------------------------------------------------
3. 15 U.S.C. 1639e(k)
The Dodd-Frank Wall Street Reform and Consumer Protection Act \16\
[[Page 57287]]
amended the Truth in Lending Act to establish independence standards
for property appraisals. The provision authorizes the Board and other
federal agencies to assess a civil penalty against persons who violate
regulations implementing this law.\17\
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\16\ Public L.aw 111-203, title XIV, section 1472(a), 124 Stat.
2187-190 (Jul. 21, 2010). Title XIV, Section 1400(c) stated that any
section or provision of that title would become effective once the
regulation implementing the section or provision became effective.
On October 28, 2010, the Board of Governors of the Federal Reserve
System published an interim final rule to implement the appraisal
independence section, as required by 15 U.S.C. 1639e(g)(2). 75 FR
66554 (Oct. 28, 2010). The interim final rule had an effective date
of December 27, 2010. Compliance with the new standards, however,
was optional until April 2011, which means that the Board and other
agencies could not have imposed a penalty for violating this law
before 2011. Therefore, the Board refers to the June 2011 CPI-U to
adjust this CMP for inflation.
\17\ 15 U.S.C. 1639e(k) refers to 15 U.S.C. 1607(a), which
authorizes the Board to enforce the appraisal independence
requirements, among other provisions.
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4. 42 U.S.C. 4012a(f)(5)
The Board is authorized to impose CMPs against a credit union that
is found to have a pattern or practice of committing certain specified
actions in violation of the National Flood Insurance Program. The Board
first adjusted this CMP for inflation in 2000.\18\ At that time, 42
U.S.C. 4012a(f)(5) authorized a $350 penalty for each violation,
subject to an annual cap of $100,000. The Board also adjusted this CMP
for inflation in 2004 \19\ and 2009.\20\ Congress amended this CMP in
2012 to increase the amount per violation to $2,000 and eliminate the
annual cap.\21\ NCUA's calculation of inflation results in no increase
to this modified CMP, but the Board includes this description to
explain that the CMP has changed.
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\18\ 65 FR 57277 (Sept. 22, 2000).
\19\ 69 FR 60077 (Oct. 7, 2004).
\20\ 74 FR 9349 (Mar. 4, 2009).
\21\ Public Law 112-141, section 100208, 126 Stat. 919 (Jul. 6,
2012). The Board refers to the June 2012 CPI-U to adjust this CMP
because Congress set the modified CMP in 2012.
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C. Conforming Amendments
The Board is also making conforming amendments to other parts of
NCUA's regulations that state a specific maximum dollar amount for a
CMP.\22\ The final rule replaces the current specific dollar amounts
with a non-numerical reference to the inflation-adjusted maximum
amounts table at 12 CFR 747.1001.
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\22\ 12 CFR 740.4(f); 12 CFR 741.4(k)(4)(i); 12 CFR 796.5(a)(2).
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III. Regulatory Procedures
A. Final Rule Under the Administrative Procedure Act
The FCPIA Act requires adjustments of CMPs for inflation to occur
at least every four years. Federal agencies have no discretion in
calculating the adjustments. Thus, the Board cannot vary the amount of
the adjustments to reflect any views or suggestions submitted by
commenters. Further, the regulation is ministerial and technical. For
all these reasons, public notice and comment for this new regulation is
unnecessary, impracticable, and contrary to the public interest under
the Administrative Procedure Act (APA).\23\ For the same reasons, there
is no good cause to impose a 30-day delayed effective date requirement
under the APA.\24\
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\23\ 5 U.S.C. 553(b)(3)(B).
\24\ 5 U.S.C. 553(d)(3).
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B. Regulatory Flexibility Act
The Regulatory Flexibility Act requires the Board to prepare an
analysis to describe any significant economic impact a regulation may
have on a substantial number of small entities.\25\ For purposes of
this analysis, the Board considers small credit unions to be those
having under $50 million in assets.\26\ This final rule would not have
a significant economic impact on a substantial number of small credit
unions because it only affects the maximum amounts of CMPs that may be
assessed in individual cases, which are not numerous and generally do
not involve assessments at the maximum level. In addition, several of
the CMPs are limited to a percentage of a credit union's assets.
Finally, in assessing CMPs, the Board generally must consider a party's
financial resources.\27\ Because this final rule would affect few, if
any, small entities, the Board certifies that the final rule will not
have a significant economic impact on small entities.
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\25\ 5 U.S.C. 603(a).
\26\ Interpretive Ruling and Policy Statement 03-2, 68 FR 31949
(May 29, 2003), as amended by Interpretive Ruling and Policy
Statement 13-1, 78 FR 4032 (Jan. 18, 2013).
\27\ 12 U.S.C. 1786(k)(2)(G)(i).
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C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in
which an agency creates a new paperwork burden on regulated entities or
modifies an existing burden.\28\ For purposes of the PRA, a paperwork
burden may take the form of either a reporting or a recordkeeping
requirement, both referred to as information collections. This final
rule adjusts the maximum amounts of certain CMPs that the Board may
assess against individuals, entities, or credit unions but does not
require any reporting or recordkeeping. Therefore, this final rule will
not create new paperwork burdens or modify any existing paperwork
burdens.
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\28\ 44 U.S.C. 3507(d); 5 CFR part 1320.
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D. Executive Order 13132
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests. In
adherence to fundamental federalism principles, NCUA, an independent
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies
with the executive order. This final rule adjusts the maximum amounts
of certain CMPs that the Board may assess against individuals,
entities, and federally insured credit unions, including state-
chartered credit unions. However, the final rule does not create any
new authority or alter the underlying statutory authorities that enable
the Board to assess CMPs. Accordingly, this rule will not have a
substantial direct effect on the states, on the connection between the
national government and the states, or on the distribution of power and
responsibilities among the various levels of government. The Board has
determined this rule does not constitute a policy that has federalism
implications for purposes of the executive order.
E. Assessment of Federal Regulations and Policies on Families
The Board has determined that this final rule will not affect
family well-being within the meaning of Section 654 of the Treasury and
General Government Appropriations Act, 1999.\29\
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\29\ Public Law 105-277, 112 Stat. 2681 (Oct. 21, 1998).
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F. Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act of 1996 \30\
(SBREFA) provides generally for congressional review of agency rules. A
reporting requirement is triggered in instances where the Board issues
a final rule as defined by Section 551 of the Administrative Procedure
Act.\31\ The Office of Management and Budget has determined that this
final rule is not a ``major rule'' within the meaning of the relevant
sections of SBREFA.
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\30\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996).
\31\ 5 U.S.C. 551.
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List of Subjects
12 CFR Part 740
Advertisements, Credit unions.
12 CFR Part 741
Credit, Credit unions, Reporting and recordkeeping requirements,
Share insurance.
12 CFR Part 747
Credit unions, Civil monetary penalties.
[[Page 57288]]
12 CFR Part 796
Conflicts of interest, Credit unions, Ethical conduct, Government
employees.
By the National Credit Union Administration Board on September
17, 2015.
Gerard S. Poliquin,
Secretary of the Board.
For the reasons stated above, the NCUA Board amends 12 CFR parts
740, 741, 747, and 796 as follows:
PART 740--ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS
0
1. The authority citation for part 740 continues to read as follows:
Authority: 12 U.S.C. 1766, 1781, 1785, and 1789.
0
2. In Sec. 740.4, paragraph (f) is revised to read as follows:
Sec. 740.4 Requirements for the official sign.
* * * * *
(f) An insured credit union that fails to comply with Section
205(a) of the Federal Credit Union Act regarding the official sign, 12
U.S.C. 1785(a), or any requirement in this part is subject to a daily
penalty in the amount set forth in Sec. 747.1001 of this chapter.
PART 741--REQUIREMENTS FOR INSURANCE
0
3. The authority citation for part 741 continues to read as follows:
Authority: 12 U.S.C. 1757, 1766(a), 1781-1790, and 1790d; 31
U.S.C. 3717.
0
4. In Sec. 741.4, paragraph (k)(4)(i) is revised to read as follows:
Sec. 741.4 Insurance premium and one percent deposit.
* * * * *
(k) * * *
(4) * * *
(i) Section 202(d)(2)(B) of the Act (12 U.S.C. 1782(d)(2)(B))
provides that the Board may assess and collect a penalty from an
insured credit union, up to the amount specified in Sec. 747.1001 of
this chapter, for each day the credit union fails or refuses to pay any
deposit or premium due to the fund; and
* * * * *
PART 747--ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF
PRACTICE AND PROCEDURE, AND INVESTIGATIONS
0
5. The authority for part 747 is revised to read as follows:
Authority: 12 U.S.C. 1766, 1782, 1784, 1785, 1786, 1787, 1790a,
1790d; 15 U.S.C. 1639e; 42 U.S.C. 4012a; Pub. L. 101-410; Pub. L.
104-134; Pub. L. 109-351; 120 Stat. 1966.
0
6. Section 747.1001 is revised to read as follows:
Sec. 747.1001 Adjustment of civil monetary penalties by the rate of
inflation.
(a) NCUA is required by the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note)) to adjust the maximum amount of each civil monetary
penalty within its jurisdiction by the rate of inflation. The following
chart displays those adjustments, as calculated pursuant to the
statute:
------------------------------------------------------------------------
New maximum
U.S. Code citation CMP description amount
------------------------------------------------------------------------
(1) 12 U.S.C. 1782(a)(3)...... Inadvertent failure to $3,200.
submit a report or
the inadvertent
submission of a false
or misleading report.
(2) 12 U.S.C. 1782(a)(3)...... Non-inadvertent $32,000.
failure to submit a
report or the non-
inadvertent
submission of a false
or misleading report.
(3) 12 U.S.C. 1782(a)(3)...... Failure to submit a $1,425,000 or 1
report or the percent of the
submission of a false total assets of
or misleading report the credit
done knowingly or union,
with reckless whichever is
disregard. less.
(4) 12 U.S.C. 1782(d)(2)(A)... Tier 1 CMP for $3,200.
inadvertent failure
to submit certified
statement of insured
shares and charges
due to NCUSIF, or
inadvertent
submission of false
or misleading
statement.
(5) 12 U.S.C. 1782(d)(2)(B)... Tier 2 CMP for non- $32,000.
inadvertent failure
to submit certified
statement or
submission of false
or misleading
statement.
(6) 12 U.S.C. 1782(d)(2)(C)... Tier 3 CMP for failure $1,425,000 or 1
to submit a certified percent of the
statement or the total assets of
submission of a false the credit
or misleading union,
statement done whichever is
knowingly or with less.
reckless disregard.
(7) 12 U.S.C. 1785(a)(3)...... Non-compliance with $110.
insurance logo
requirements.
(8) 12 U.S.C. 1785(e) (3)..... Non-compliance with $110.
NCUA security
requirements.
(9) 12 U.S.C. 1786(k)(2)(A)... Tier 1 CMP for $8,500.
violations of law,
regulation, and other
orders or agreements.
(10) 12 U.S.C. 1786(k)(2)(A).. Tier 2 CMP for $42,500.
violations of law,
regulation, and other
orders or agreements
and for recklessly
engaging in unsafe or
unsound practices or
breaches of fiduciary
duty.
(11) 12 U.S.C. 1786(k)(2)(A).. Tier 3 CMP for For a person
knowingly committing other than an
the violations under insured credit
Tier 1 or 2 (natural union:
person). $1,525,000; For
an insured
credit union:
$1,525,000 or 1
percent of the
total assets of
the credit
union,
whichever is
less.
(12) 12 U.S.C. 1786(w)(5)(ii). Non-compliance with $275,000.
senior examiner post-
employment
restrictions.
(13) 15 U.S.C. 1639e(k)....... Non-compliance with First violation:
appraisal $11,000
independence Subsequent
requirements. violations:
$20,000.
(14) 42 U.S.C. 4012a(f)(5).... Non-compliance with $2,000.
flood insurance
requirements.
------------------------------------------------------------------------
[[Page 57289]]
(b) The adjustments displayed in paragraph (a) of this section
apply to acts occurring after the date of publication in the Federal
Register.
PART 796--POST-EMPLOYMENT RESTRICTIONS FOR CERTAIN NCUA EXAMINERS
0
7. The authority citation for part 796 continues to read as follows:
Authority: 12 U.S.C. 1786(w).
0
8. In Sec. 796.5, paragraph (a)(2) is revised to read as follows:
Sec. 796.5 What are the penalties for violating these special post-
employment restrictions?
(a) * * *
(2) Assessed a civil monetary penalty up to the amount specified in
Sec. 747.1001 of this chapter.
* * * * *
[FR Doc. 2015-24157 Filed 9-22-15; 8:45 am]
BILLING CODE 7535-01-P
