Civil Monetary Penalty Inflation Adjustment, 40152-40158 [2016-14719]

Download as PDF 40152 Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Rules and Regulations removing the words ‘‘It must state:’’ and adding the words ‘‘Forms may be provided to the inspector using a U.S. Government electronic information exchange system or other authorized method. The completed form must state:’’ in their place. 28. In § 93.905, paragraph (b) is added to read as follows: ■ § 93.905 Declaration and other documents for live fish, fertilized eggs, and gametes. * * * * * (b) Any declaration, permit, or other document for live fish, fertilized eggs, and gametes required under this subpart may be issued and presented using a U.S. Government electronic information exchange system or other authorized method. * * * * * PART 94—RINDERPEST, FOOT-ANDMOUTH DISEASE, NEWCASTLE DISEASE, HIGHLY PATHOGENIC AVIAN INFLUENZA, AFRICAN SWINE FEVER, CLASSICAL SWINE FEVER, SWINE VESICULAR DISEASE, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND RESTRICTED IMPORTATIONS 29. The authority citation for part 94 continues to read as follows: ■ Authority: 7 U.S.C. 450, 7701–7772, 7781– 7786, and 8301–8317; 21 U.S.C. 136 and 136a; 31 U.S.C. 9701; 7 CFR 2.22, 2.80, and 371.4. § 94.6 [Amended] 30. In § 94.6, paragraph (d) is amended by adding the words ‘‘or visit https://www.aphis.usda.gov/animal_ health/permits/’’ at the end of the sentence. ■ § 94.15 [Amended] 31 In § 94.15, paragraphs (b)(1) and (c)(1) are amended by adding the words ‘‘or by visiting https:// www.aphis.usda.gov/animal_health/ permits/’’ after the numbers ‘‘20737– 1231’’. ■ 32. In § 94.24, paragraph (b)(2) is revised to read as follows: ■ § 94.24 Restrictions on importation of meat and edible products from ovines and caprines due to bovine spongiform encephalopathy. rmajette on DSK2TPTVN1PROD with RULES * * * * * (b) * * * (2) The person importing the gelatin obtains a United States Veterinary Permit for Importation and Transportation of Controlled Materials and Organisms and Vectors by filing a permit application on VS Form 16–3. Permit applications are available from VerDate Sep<11>2014 14:40 Jun 20, 2016 Jkt 238001 RIN 3133–AE59 Pages/rules/proposed.aspx. Follow the instructions for submitting comments. • Email: Address to regcomments@ ncua.gov. Include ‘‘[Your name] Comments on ‘‘Civil Monetary Penalty Inflation Adjustment’’ in the email subject line. • Fax: (703) 518–6319. Use the subject line described above for email. • Mail: Address to Gerard Poliquin, Secretary of the Board, National Credit Union Administration, 1775 Duke Street, Alexandria, Virginia 22314– 3428. • Hand Delivery/Courier: Same as mail address. Public Inspection: All public comments are available on the agency’s Web site at https://www.ncua.gov/ RegulationsOpinionsLaws/comments as submitted, except as may not be possible for technical reasons. Public comments will not be edited to remove any identifying or contact information. Paper copies of comments may be inspected in NCUA’s law library at 1775 Duke Street, Alexandria, Virginia 22314, by appointment weekdays between 9:00 a.m. and 3:00 p.m. To make an appointment, call (703) 518–6546 or send an email to OGCMail@ncua.gov. FOR FURTHER INFORMATION CONTACT: Ian Marenna, Senior Trial Attorney, at 1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518–6540. SUPPLEMENTARY INFORMATION: Civil Monetary Penalty Inflation Adjustment I. Legal Background II. Calculation of Adjustments III. Regulatory Procedures APHIS, Veterinary Services, National Center for Import and Export, 4700 River Road Unit 38, Riverdale, MD 20737–1231, or at https:// www.aphis.usda.gov/animal_health/ permits/. Forms may be submitted using a U.S. Government electronic information exchange system or other authorized method. The application for such a permit must state the intended use of the gelatin and name and address of the consignee in the United States. § 94.27 [Amended] 33. In § 94.27, the introductory text of paragraph (b) is amended by adding the words ‘‘Notification may be made using a U.S. Government electronic information exchange system or other authorized method.’’ after the words ‘‘before such transit.’’ ■ Done in Washington, DC, this 15th day of June 2016. Kevin Shea, Administrator, Animal and Plant Health Inspection Service. [FR Doc. 2016–14616 Filed 6–20–16; 8:45 am] BILLING CODE 3410–34–P NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Part 747 National Credit Union Administration (NCUA). ACTION: Interim final rule with request for comments. 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 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. DATES: This interim final rule is effective July 21, 2016. Comments must be received on or before July 21, 2016. ADDRESSES: You may submit comments by any of the following methods (Please send comments by one method only): • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • NCUA Web site: https:// www.ncua.gov/regulation-supervision/ SUMMARY: PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 I. Legal Background A. Statutory Requirements and Overview of Changes Enacted in 2015 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. The Board most recently adjusted CMPs within its jurisdiction in September 2015.3 In November 2015, Congress further amended the CMP inflation requirements in the Bipartisan Budget Act of 2015,4 which contains the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 amendments).5 This 1 Public Law 104–134, sec. 31001(s), 110 Stat. 1321–373 (Apr. 26, 1996). The law 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. 3 80 FR 57284 (Sept. 23, 2015). 4 Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015). 5 129 Stat. 599. E:\FR\FM\21JNR1.SGM 21JNR1 rmajette on DSK2TPTVN1PROD with RULES Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Rules and Regulations legislation provides for an initial ‘‘catchup’’ adjustment of CMPs in 2016, followed by annual adjustments. The catch-up adjustment will generally reset CMP maximum amounts by setting aside the inflation adjustments that agencies made in prior years and instead calculating inflation with reference to the year when each CMP was enacted or last modified by Congress. The 2015 amendments made several procedural changes including: (1) Starting in 2016, each agency must adjust its CMPs for inflation annually by the date set forth in the 2015 amendments; (2) the rounding ranges and procedure that applied before the 2015 amendments no longer apply, and agencies instead must round increases to the nearest dollar; (3) the ten percent cap on the first adjustment of any CMP has been eliminated; (4) the amount of the 2016 adjustment is limited to 150 percent of the amount of each CMP on the date that the 2015 amendments were enacted; and (5) October, rather than June, will be the relevant month for determining the percentage increase in inflation between relevant years.6 The legislation also modified the process by making the following additional changes: (1) In 2016, agencies will make the required adjustments through an interim final rule by July 1, 2016, to be effective by August 1, 2016; (2) in 2017 and subsequent years, agencies will make the required adjustments through direct final rules published and effective by January 15 of each year; (3) the adjusted maximum amounts will apply to CMPs issued after the adjustment takes effect, including cases in which the associated violation predates the adjustment; (4) the Office of Management and Budget (OMB) will publish annual guidance for agencies; (5) agencies must publish information regarding CMPs in their annual financial reports; and (6) the Government Accountability Office will report to Congress annually on agencies’ compliance with the statute.7 The basic framework for the inflation calculation process remains the same in that agencies must calculate the increase in inflation according to a cost-of-living index and apply this percentage to each CMP to establish a new maximum amount. The resulting adjustment permits but does not require assessment at the new maximum level. Agencies must publish the adjusted maximum amounts in the Federal Register, as they did prior to the 2015 amendments. 6 Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015). 7 Id. VerDate Sep<11>2014 14:40 Jun 20, 2016 Jkt 238001 However, the 2015 amendments do make a significant change to the calculations for the first year by requiring an initial catch-up adjustment to re-set penalty levels.8 In 2016, agencies must measure inflation by comparing the cost-of-living index for the year in which each CMP was established or last adjusted under a provision other than the FCPIA Act with the index for 2015.9 That is, agencies must disregard the inflation adjustments that they have made under the FCPIA Act since 1996, determine when Congress initially established or last modified each CMP, and adjust for inflation between that year and 2015. This calculation is based on the amount of the CMP as Congress set it, not the adjustments that agencies have made since 1996 under the FCPIA Act. The amount of the catch-up adjustment is separately limited to 150 percent of the CMP maximum in effect as of November 2, 2015, when the 2015 amendments became effective.10 The next section provides more detail on the revised inflation procedures. B. Statutory Procedures for Calculating Adjustments and OMB Guidance This section provides a detailed explanation of the inflation adjustment procedures under the 2015 amendments, including the 150 percent cap on the 2016 adjustment, the discretionary exception that agencies may invoke to limit the required increases based on negative economic impact or social costs, and an exception that agencies may apply when a CMP has been increased by a greater amount than the current calculation within the preceding 12 months. The 150 percent cap applies to one CMP within NCUA’s jurisdiction, namely the CMP for violating NCUA security requirements.11 The Board does not seek to invoke the discretionary exception based on negative economic impact or social costs or the exception for greater increases in the preceding 12 months. In the FCPIA Act, the term ‘‘this Act’’ is used throughout to refer to the entire FCPIA Act as amended, not merely the 2015 amendments or prior amendments. In 2016, agencies must determine the percentage increase in inflation by comparing the October 2015 CPI–U with the CPI–U for October in the year ‘‘during which the amount of such civil monetary penalty was established or 8 Public Law 114–74, sec. 701(b)(2)(B), 129 Stat. 600, codified at 28 U.S.C. 2461 note. 9 Id. 10 Id. 11 12 U.S.C. 1785(e)(3). PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 40153 adjusted pursuant to a provision of law other than this Act.’’ 12 Also, the 2015 amendments provide that the percentage increase in inflation must be applied to the CMP ‘‘as it was most recently established or adjusted under a provision of law other than this Act.’’ 13 The increase must be rounded to the nearest dollar.14 The new maximum CMP is calculated by dividing the October 2015 CPI–U by the CPI–U for October of the year when Congress established or last modified the CMP. The resulting multiplier is applied to the original or modified maximum amount set by Congress to find the new maximum amount. In making the calculations, the Board refers to the year in which the statute establishing the CMP was enacted, even if the statute provided that the CMP would not go into effect until a later year. In 2015, the Board referred to the year in which the statutes establishing the CMPs became effective.15 The Board has determined that disregarding delayed effective dates is more consistent with the FCPIA Act’s language, as well as OMB’s guidance.16 After completing this calculation for each CMP, agencies must also consider the 150 percent cap, the exception based on a greater increase within the preceding 12 months of the required adjustment, and the exception based on negative economic impact or social costs. These considerations are described in detail below. First, ‘‘the amount of the increase in a civil monetary penalty . . . shall not exceed 150 percent of the amount of that civil monetary penalty on the date of enactment’’ of the 2015 amendments.17 This mandatory cap applies only to the 2016 initial catch-up adjustment. The 150 percent cap applies to the amount of the increase in the CMP. Accordingly, the final maximum amount for each CMP is capped at 250 12 Public Law 114–74, sec. 701(b)(2)(A), 129 Stat. 600, codified at 28 U.S.C. 2461 note. 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/. 13 Public Law 114–74, sec. 701(b)(2)(B), 129 Stat. 600, codified at 28 U.S.C. 2461 note. 14 Public Law 114–74, sec. 701(b)(2)(A), 129 Stat. 600, codified at 28 U.S.C. 2461 note. 15 The CMPs for senior examiner conflicts of interest, appraisal independence standards, and display of the NCUA insurance logo were enacted with delayed effective dates. 16 Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M–16–06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 3, 6 (2016). 17 Public Law 114–74, sec. 701(b)(2)(B), 129 Stat. 600, codified at 28 U.S.C. 2461 note. E:\FR\FM\21JNR1.SGM 21JNR1 40154 Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Rules and Regulations percent of its current level.18 Based on the Board’s calculations, this cap applies only to NCUA’s security requirements CMP.19 Second, if a CMP ‘‘is, during the 12 months preceding a required cost-ofliving adjustment, increased by an amount greater than the amount of the adjustment required . . ., the head of the agency is not required’’ to make the adjustment.20 The Board has compared the projected increases with the increases that it made in 2015.21 The only CMP that was increased by a greater amount in 2015 than it would be under the current adjustments is the appraisal independence standards CMP.22 The Board will not invoke the exception in this case because: (1) The difference between the existing maximum and the new maximum under the current adjustments is immaterial; and (2) setting the new maximum without invoking this exception will place NCUA’s CMP at the same level as the federal banking regulators and the Consumer Financial Protection Bureau, which will be adjusting this CMP for the first time this year. Third, only for the 2016 adjustment, an agency may seek to limit the amount of an adjustment if it determines that the otherwise-required adjustment would have a ‘‘negative economic impact’’ or that ‘‘the social costs’’ of the increase ‘‘outweigh the benefits.’’ 23 To invoke this discretionary exception in 2016, an agency must first publish a notice of proposed rulemaking with an opportunity to comment on the proposed invocation of the exception, and the Director of OMB must concur with the agency’s determination.24 OMB’s guidance states that agencies should consult with OMB before rmajette on DSK2TPTVN1PROD with RULES 17 Public Law 114–74, sec. 701(b)(2)(B), 129 Stat. 600, codified at 28 U.S.C. 2461 note. 18 For consistency, the Board refers to this limitation as the 150 percent cap throughout this rule. 19 12 U.S.C. 1785(e)(3). 20 Public Law 114–74, sec. 701(b)(1)(D), 129 Stat. 600, codified at 28 U.S.C. 2461 note. 21 The Board notes that this exception is not limited to the initial catch-up adjustment and could apply in the future. 22 15 U.S.C. 1639e(k). 23 Public Law 114–74, sec. 701(b)(1)(D), 129 Stat. 599–600, codified at 28 U.S.C. 2461 note. VerDate Sep<11>2014 14:40 Jun 20, 2016 Jkt 238001 proposing to invoke this limitation and must submit the proposal to OMB by May 2, 2016.25 The memorandum also states that OMB expects ‘‘determination concurrences’’ to be rare.26 The statute does not define ‘‘negative economic impact’’ or ‘‘social costs.’’ Given these statutory criteria and historical trends in NCUA’s CMP assessments, the Board will not seek to invoke this exception for any of its CMP authorities. In addition to the statute, the Board has reviewed OMB’s guidance. On February 24, 2016, as required by the 2015 amendments, OMB published guidance for agencies to implement the new procedures, including the 2016 catch-up adjustment.27 OMB’s guidance covers the following issues: (1) Identifying CMPs to which the law applies; (2) completing the 2016 catchup adjustment; (3) making future inflation adjustments; and (4) performing agency oversight of inflation adjustments. The Board has reviewed the guidance and finds that the Board’s calculations of the increases and the 150 percent cap are wholly consistent with the guidance. Further, the Board finds that it has appropriately identified CMPs subject to adjustment under the FCPIA Act. All of the adjusted CMPs are set by federal law at specific maximums, are assessed by NCUA under the Federal Credit Union Act or other federal statutes, and are assessed or enforced through agency proceedings or civil actions in the federal courts.28 The Board will also review OMB’s guidance in connection with future adjustments and its annual financial reporting requirement. In sum, under the statute, the Board must determine: (1) When Congress established or most recently modified each CMP; (2) the amount of each CMP 24 Id. 25 Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M–16–06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 3 (2016). 26 Id. 27 Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M–16–06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2016). PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 as set by Congress at that time; (3) the increase in each CMP based on the CPI– U; (4) whether the increase must be limited by the 150 percent cap; (5) whether the Board will invoke the exception based on a greater increase in a CMP maximum amount in the preceding 12 months; and (6) whether the Board will seek to invoke the exception to limit the increases based on negative economic impact or social costs. Accordingly, the Board has reviewed the CMPs within its jurisdiction to determine when Congress established or last modified each CMP and to determine the amount set by Congress. Next, the Board applied the appropriate inflationary multiplier to the maximum amount of each CMP as it was established or last modified by Congress in order to determine the new maximum. Finally, the Board considered the 150 percent cap, the exception based on greater increases in the preceding 12 months, and the exception based on negative economic impact or social costs. The next section presents the calculations and applies the 150 percent cap and the two exceptions in detail to arrive at the new maximum CMP amounts to be published in the Federal Register. II. Calculation of Adjustments A. Penalty Adjustment Calculations Consistent with the NCUA’s September 2015 CMP adjustments, the Board provides the inflation calculations in table format immediately below. The separate table included in the regulatory text section to be published at 12 CFR 747.1001 shows only the adjusted CMPs, not the calculations leading to the adjusted levels. The table below calculates the projected increase by carrying out the steps described above. The multiplier, which is the quotient of the October 2015 CPI–U divided by the CPI–U for October of the year noted in parentheses, is applied to the maximum amount as originally established or last modified by Congress to calculate the new maximum. The final maximum amount is the lesser of the calculated maximum and the 150 percent cap. E:\FR\FM\21JNR1.SGM 21JNR1 40155 Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Rules and Regulations TABLE—CALCULATION OF MAXIMUM CMP ADJUSTMENTS 12 U.S.C. 1782(a)(3). 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). 12 U.S.C. 1785(a)(3). 12 U.S.C. 1785(e)(3). 12 U.S.C. 1786(k)(2)(A). 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). rmajette on DSK2TPTVN1PROD with RULES 15 U.S.C. 1639e(k). 42 U.S.C. 4012a(f)(5). 29 The 30 This Original maximum ($) Description/tier 29 Citation Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report. Non-inadvertent failure to submit a report or the non-inadvertent submission of a false or misleading report. Failure to submit a report or the submission of a false or misleading report done knowingly or with reckless disregard. Tier 1 CMP for inadvertent failure to submit certified statement of insured shares and charges due to NCUSIF, or inadvertent submission of false or misleading statement. Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of false or misleading statement. Tier 3 CMP for failure to submit a certified statement or the submission of a false or misleading statement done knowingly or with reckless disregard. Non-compliance with insurance logo requirements. Non-compliance with NCUA security requirements. Tier 1 CMP for violations of law, regulation, and other orders or agreements. Tier 2 CMP for violations of law, regulation, and other orders or agreements and for recklessly engaging in unsafe or unsound practices or breaches of fiduciary duty. Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (natural person). Tier 3 (same) (CU) ...................... Non-compliance with senior examiner post-employment restrictions. Non-compliance with appraisal independence standards (first violation). Subsequent violations of the same. Non-compliance with flood insurance requirements. Multiplier Projected new maximum 150 Percent cap ($) 30 2,000 ................ 1.89631 (1989) 3,787 8,000 3,787. 20,000 .............. 1.89631 (1989) 37,872 80,000 37,872. Lesser of 1,000,000 or 1% of total CU assets. 2,000 ................ 1.89631 (1989) 1,893,610 3,562,500. 1.73099 (1991) 3,462 8,000 20,000 .............. 1.73099 (1991) 34,620 80,000 Lesser of 1,000,000 or 1% of total CU assets. 1.73099 (1991) 1,730,990 3,562,500 100 ................... 1.17858 (2006) 6.03650 (1970) 1.89631 (1989) 118 275 118. 554 275 275. 9,468 21,250 9,468. 47,340. 100 ................... 5,000 ................ 14:40 Jun 20, 2016 Jkt 238001 PO 00000 Lesser of 1,893,610 or 1% of total CU assets. 3,462. 34,620. Lesser of 1,730,990 or 1% of total CU assets. 25,000 .............. 1.89631 (1989) 47,340 106,250 1,000,000 ......... 1.89631 (1989) 1,893,610 3,812,500 1,893,610. Lesser of 1,000,000 or 1% of total CU assets. 250,000 ............ 1.89631 (1989) 1,893,610 3,812,500 1.24588 (2004) 311,470 687,500 Lesser of 1,893,610 or 1% of total CU assets. 311,470. 10,000 .............. 1.08745 (2010) 10,875 27,500 10,875. 20,000 .............. 1.08745 (2010) 1.02819 (2012) 21,749 50,000 21,749. 2,056 5,000 2,056. 2,000 ................ table uses condensed descriptions of CMP tiers. Refer to the U.S. Code citations for complete descriptions. column displays 250 percent of the current maximums found at 12 CFR 747.1001. VerDate Sep<11>2014 Adjusted maximum ($) (lesser of projected new maximum and 150 percent cap) Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\21JNR1.SGM 21JNR1 40156 Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Rules and Regulations rmajette on DSK2TPTVN1PROD with RULES B. Application of the 150 Percent Cap and Two Exceptions This section describes in detail the Board’s consideration of the 150 percent cap, the exception based on greater increases in the preceding 12 months, and the exception based on negative economic impact or social costs. First, as shown in the table above, the Board has applied the 150 percent cap on the amount of the increase of the initial adjustments and has determined that it must limit the increase in the security requirements CMP.31 The other CMPs are not affected. Second, the Board has compared the increases calculated above with the increases that it made in September 2015 32 to determine whether any of those increases are greater than the increases calculated for 2016. In September 2015, the Board adjusted this CMP to $11,000.33 This occurred because under the pre-2015 amendments procedures, the Board rounded the amount of the increase to the nearest multiple of $1,000. Under the amended FCPIA Act, the Board could leave this adjustment in place because ‘‘during the 12 months preceding [the] required cost-of-living adjustment,’’ the Board increased the CMP ‘‘by an amount greater than the amount of the adjustment required’’ by the new calculation.34 Under these circumstances, the Board is ‘‘not required’’ to make the otherwiserequired adjustment.35 The Board has determined that it will not invoke this exception, which is not mandatory. First, the difference between the maximum set in 2015 and the maximum calculated above is immaterial. Second, the Board expects the federal banking regulators and the Consumer Financial Protection Bureau, which also have jurisdiction to enforce this CMP, to make their first adjustment of this CMP this year. By declining to invoke this exception, the Board will set the maximum at the same level as those agencies, which means that parties subject to this CMP will not face differing maximums based on which agency has jurisdiction. This exception does not apply to the other CMPs because the adjustments required in 2016 exceed those made in 2015. Finally, the Board does not seek to invoke the discretionary limitation tied to ‘‘negative economic impact’’ or U.S.C. 2461 note, § 3(2). 31 12 U.S.C. 1785(e)(3). 32 These increases are set forth at 80 FR 57285– 286 (Sept. 23, 2015). 33 80 FR 57285 (Sept. 23, 2015). 34 Public Law 114–74, sec. 701(b)(1)(D), 129 Stat. 600, codified at 28 U.S.C. 2461 note. ‘‘social costs’’ posed by the otherwiserequired increases. The statute and the OMB guidance do not define these terms. In applying these criteria, the Board has considered the overall amount of its CMP assessments and their likely impact on credit unions and individuals. NCUA historically has not assessed CMPs frequently. They have averaged 10.6 a year, or less than one a month, over the past quarter century. Furthermore, when NCUA has assessed CMPs it has not usually assessed them at or near the maximum levels allowed by law, which would be most likely to invoke economic impact or social cost concerns. The Board reviewed the 281 CMP orders that it has issued since 1990 and found that they total approximately $665,000, with an average (mean) value of approximately $2,400. The table at the end of this section summarizes this information. Based on historical trends, third tier CMPs appear likely to remain rare. Moreover, NCUA considers the size of the credit union in determining the amount of a CMP assessment. These factors indicate that the increased maximums will not cause a negative economic impact or social costs. Also, for most of its CMPs, the Board is required by statute to consider potential mitigating factors in determining a CMP assessment amount.36 These considerations include the party’s financial resources.37 Interagency policy on CMP assessments includes this consideration.38 This requirement applies to all of the CMPs that have maximum levels above $1,000,000. Thus, by their own terms, these CMPs account for the financial impact on the penalized party, which guards against negative economic impact or social costs. In addition, the Board is not required to assess at the new maximum amounts. Accordingly, the Board finds that the economic and social considerations under the statute do not warrant seeking to invoke this exception. TABLE—NCUA CMP ASSESSMENTS (1990–2016) Number of CMPs .................. Aggregate Amount of CMP Assessments ..................... Average (Mean) Amount of Assessments ..................... 281 $665,208 $2,367 28 28 VerDate Sep<11>2014 14:40 Jun 20, 2016 Jkt 238001 36 12 U.S.C. 1786(k)(2)(G). U.S.C. 1786(k)(2)(G)(i). 38 Federal Financial Institutions Examination Council, Assessment of Civil Money Penalties, 63 FR 30226 (June 3, 1998). 37 12 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 C. Effective Date for Adjusted Maximum Amounts Finally, the 2015 amendments changed the effective date provision for adjusted CMPs. Before the 2015 amendments, the statute provided: ‘‘Any increase under this Act in a civil monetary penalty shall apply only to violations which occur after the date the increase takes effect.’’ 39 Under that standard, the new maximums could only be assessed for violations that occurred after the date the adjustment took effect. The 2015 amendments changed this provision to read: ‘‘Any increase under this Act in a civil monetary penalty shall apply only to civil monetary penalties, including those whose associated violation predated such increase, which are assessed after the date the increase takes effect.’’ 40 The OMB guidance notes this change.41 The adjusted maximums now apply to CMPs assessed after the effective date of the adjustment, even if the associated violation occurred before the adjustment took effect. The Board is amending 12 CFR 747.1001(b) to reflect this change. III. Regulatory Procedures A. Interim Final Rule Under the Administrative Procedure Act In the 2015 amendments to the FCPIA Act, Congress directed agencies to issue an interim final rule for the 2016 inflation adjustments.42 OMB’s guidance reiterated this requirement and stated that agencies therefore do not need to solicit comments prior to promulgating the rule.43 The legislative directive provides an exception to the APA’s ordinary notice-and-comment requirement.44 In addition, the Board finds that notice-and-comment procedures would be impracticable and unnecessary under the APA because of: (1) the legislative directive to issue an interim final rule; (2) the largely ministerial and technical nature of the rule, which affords agencies limited 39 Public Law 104–134, § 31001(s)(1), 110 Stat. 1321–373 (Apr. 26, 1996). 40 Public Law 114–74, 129 Stat. 600 (Nov. 2, 2015), codified at 28 U.S.C. 2461 note. 41 Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M–16–06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 4 (2016). 42 Public Law 114–74, 129 Stat. 600 (Nov. 2, 2015), codified at 28 U.S.C. 2461 note. 43 Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M–16–06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 3 (2016). 44 See 5 U.S.C. 559; Asiana Airlines v. Fed. Aviation Admin., 134 F.3d 393, 396–99 (D.C. Cir. 1998). E:\FR\FM\21JNR1.SGM 21JNR1 Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Rules and Regulations discretion in promulgating the rule; and (3) the statutory deadlines for publishing and making the interim final rule effective.45 In these circumstances, the Board finds good cause to issue an interim final rule without issuing a notice of proposed rulemaking. Accordingly, this interim final rule is issued without prior notice. However, the Board invites comments on all aspects of the interim final rule. The interim final rule will become effective 30 days from publication in the Federal Register.46 The Board will review and consider all comments before issuing a final rule. 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.47 For purposes of this analysis, the Board considers small credit unions to be those having under $100 million in assets.48 This interim 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.49 Because this interim final rule would affect few, if any, small entities, the Board certifies that the interim 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.50 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 interim 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 interim final rule will not create new paperwork burdens or modify any existing paperwork burdens. (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.53 The Board has submitted this interim final rule to OMB for it to determine whether it is a ‘‘major rule’’ within the meaning of the relevant sections of SBREFA. 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 interim 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 interim final rule does not create any new authority or alter the underlying statutory authorities that enable the Board to assess CMPs. Accordingly, this interim final 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 that this interim final rule does not constitute a policy that has federalism implications for purposes of the executive order. List of Subjects in 12 CFR Part 747 E. Assessment of Federal Regulations and Policies on Families The Board has determined that this interim final rule will not affect family well-being within the meaning of Section 654 of the Treasury and General Government Appropriations Act, 1999.51 F. Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act of 1996 52 U.S. Code citation (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. rmajette on DSK2TPTVN1PROD with RULES Credit unions, Civil monetary penalties. By the National Credit Union Administration Board on June 16, 2016. Gerard S. Poliquin, Secretary of the Board. For the reasons stated above, the NCUA Board amends 12 CFR part 747 as follows: PART 747—ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF PRACTICE AND PROCEDURE, AND INVESTIGATIONS 1. The authority citation 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; Pub. L. 114–74. Subpart K—Inflation Adjustment of Civil Monetary Penalties 2. Revise § 747.1001 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 adjusted amounts, as calculated pursuant to the statute: CMP Description (2) 12 U.S.C. 1782(a)(3) .................................... 45 5 U.S.C. 553(b)(3)(B); see Mid-Tex Elec. Co-op., Inc. v. Fed. Energy Regulatory Comm’n, 822 F.2d 1123, 1133–34 (D.C. Cir. 1987). 46 See 5 U.S.C. 553(d). 47 5 U.S.C. 603(a). VerDate Sep<11>2014 14:40 Jun 20, 2016 Jkt 238001 40157 New maximum amount 48 Interpretive Ruling and Policy Statement 15–1, 80 FR 57512 (Sept. 24, 2015). 49 12 U.S.C. 1786(k)(2)(G)(i). 50 44 U.S.C. 3507(d); 5 CFR part 1320. PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 $3,787. 37,872. 51 Public Law 105–277, 112 Stat. 2681 (Oct. 21, 1998). 52 Public Law 104–121, 110 Stat. 857 (Mar. 29, 1996). 53 5 U.S.C. 551. E:\FR\FM\21JNR1.SGM 21JNR1 40158 Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Rules and Regulations U.S. Code citation CMP Description New maximum amount (3) 12 U.S.C. 1782(a)(3) .................................... 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. 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). 1,893,610 or 1 percent of the total assets of the credit union, whichever is less. (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) .............................. (12) 12 U.S.C. 1786(w)(5)(ii) .............................. (13) 15 U.S.C. 1639e(k) ..................................... (14) 42 U.S.C. 4012a(f)(5) ................................. (b) The adjusted amounts displayed in paragraph (a) of this section apply to civil monetary penalties that are assessed after the date the increase takes effect, including those whose associated violation or violations predate the increase. [FR Doc. 2016–14719 Filed 6–20–16; 8:45 am] BILLING CODE 7535–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2010–0219; Directorate Identifier 2010–NE–14–AD; Amendment 39– 18556; AD 2016–12–07] RIN 2120–AA64 Airworthiness Directives; Turbomeca S.A. Turboshaft Engines Federal Aviation Administration (FAA), DOT. ACTION: Final rule. rmajette on DSK2TPTVN1PROD with RULES AGENCY: We are superseding airworthiness directive (AD) 2010–11– 10 for all Turbomeca S.A. Astazou XIV B and XIV H turboshaft engines. AD SUMMARY: VerDate Sep<11>2014 14:40 Jun 20, 2016 Jkt 238001 Non-compliance with senior examiner postemployment restrictions. Non-compliance with appraisal independence requirements. Non-compliance with flood insurance requirements. 2010–11–10 requires inspection of certain third stage turbine wheels and removal of any damaged wheel. This AD requires expanding the population and frequency of repetitive inspections. This AD was prompted by a report of a third stage turbine wheel crack detected during engine overhaul. We are issuing this AD to prevent uncontained failure of the third stage turbine wheel, which could result in damage to the engine and damage to the helicopter. DATES: This AD is effective July 26, 2016. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of July 26, 2016. ADDRESSES: For service information identified in this final rule, contact Turbomeca S.A., 40220 Tarnos, France; phone: (33) 05 59 74 40 00; fax: (33) 05 59 74 45 15. You may view this service information at the FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA. For information on the availability of this material at the FAA, call 781–238–7125. It is also available on the Internet at https://www.regulations.gov by searching for and locating Docket No. FAA–2010– 0219. PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 3,462. 34,620. 1,730,990 or 1 percent of the total assets of the credit union, whichever is less. 118. 275. 9,468. 47,340. For a person other than an insured credit union: $1,893,610; For an insured credit union: $1,893,610 or 1 percent of the total assets of the credit union, whichever is less. 311,470. First violation: $10,875 Subsequent violations: $21,749. 2,056. Examining the AD Docket You may examine the AD docket on the Internet at https:// www.regulations.gov by searching for and locating Docket No. FAA–2010– 0219; 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 mandatory continuing airworthiness information, regulatory evaluation, any comments received, and other information. The address for the Docket Office (phone: 800–647–5527) is 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: Brian Kierstead, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA 01803; phone: 781–238–7772, fax: 781–238–7199; email: brian.kierstead@faa.gov. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR E:\FR\FM\21JNR1.SGM 21JNR1

Agencies

National Credit Union Administration

[Federal Register Volume 81, Number 119 (Tuesday, June 21, 2016)]
[Rules and Regulations]
[Pages 40152-40158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14719]

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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 747

RIN 3133-AE59

Civil Monetary Penalty Inflation Adjustment

AGENCY: National Credit Union Administration (NCUA).

ACTION: Interim final rule with request for comments.

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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 and the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015.

DATES: This interim final rule is effective July 21, 2016. Comments
must be received on or before July 21, 2016.

ADDRESSES: You may submit comments by any of the following methods
(Please send comments by one method only):
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
NCUA Web site: https://www.ncua.gov/regulation-supervision/Pages/rules/proposed.aspx. Follow the instructions for
submitting comments.
Email: Address to regcomments@ncua.gov. Include ``[Your
name] Comments on ``Civil Monetary Penalty Inflation Adjustment'' in
the email subject line.
Fax: (703) 518-6319. Use the subject line described above
for email.
Mail: Address to Gerard Poliquin, Secretary of the Board,
National Credit Union Administration, 1775 Duke Street, Alexandria,
Virginia 22314-3428.
Hand Delivery/Courier: Same as mail address.
Public Inspection: All public comments are available on the
agency's Web site at https://www.ncua.gov/RegulationsOpinionsLaws/comments as submitted, except as may not be possible for technical
reasons. Public comments will not be edited to remove any identifying
or contact information. Paper copies of comments may be inspected in
NCUA's law library at 1775 Duke Street, Alexandria, Virginia 22314, by
appointment weekdays between 9:00 a.m. and 3:00 p.m. To make an
appointment, call (703) 518-6546 or send an email to OGCMail@ncua.gov.

FOR FURTHER INFORMATION CONTACT: Ian Marenna, Senior Trial Attorney, at
1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION:

I. Legal Background
II. Calculation of Adjustments
III. Regulatory Procedures

I. Legal Background

A. Statutory Requirements and Overview of Changes Enacted in 2015

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. The Board most recently
adjusted CMPs within its jurisdiction in September 2015.\3\
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\1\ Public Law 104-134, sec. 31001(s), 110 Stat. 1321-373 (Apr.
26, 1996). The law 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.
\3\ 80 FR 57284 (Sept. 23, 2015).
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In November 2015, Congress further amended the CMP inflation
requirements in the Bipartisan Budget Act of 2015,\4\ which contains
the Federal Civil Penalties Inflation Adjustment Act Improvements Act
of 2015 (the 2015 amendments).\5\ This

[[Page 40153]]

legislation provides for an initial ``catch-up'' adjustment of CMPs in
2016, followed by annual adjustments. The catch-up adjustment will
generally re-set CMP maximum amounts by setting aside the inflation
adjustments that agencies made in prior years and instead calculating
inflation with reference to the year when each CMP was enacted or last
modified by Congress.
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\4\ Public Law 114-74, 129 Stat. 584 (Nov. 2, 2015).
\5\ 129 Stat. 599.
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The 2015 amendments made several procedural changes including: (1)
Starting in 2016, each agency must adjust its CMPs for inflation
annually by the date set forth in the 2015 amendments; (2) the rounding
ranges and procedure that applied before the 2015 amendments no longer
apply, and agencies instead must round increases to the nearest dollar;
(3) the ten percent cap on the first adjustment of any CMP has been
eliminated; (4) the amount of the 2016 adjustment is limited to 150
percent of the amount of each CMP on the date that the 2015 amendments
were enacted; and (5) October, rather than June, will be the relevant
month for determining the percentage increase in inflation between
relevant years.\6\
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\6\ Public Law 114-74, 129 Stat. 584 (Nov. 2, 2015).
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The legislation also modified the process by making the following
additional changes: (1) In 2016, agencies will make the required
adjustments through an interim final rule by July 1, 2016, to be
effective by August 1, 2016; (2) in 2017 and subsequent years, agencies
will make the required adjustments through direct final rules published
and effective by January 15 of each year; (3) the adjusted maximum
amounts will apply to CMPs issued after the adjustment takes effect,
including cases in which the associated violation predates the
adjustment; (4) the Office of Management and Budget (OMB) will publish
annual guidance for agencies; (5) agencies must publish information
regarding CMPs in their annual financial reports; and (6) the
Government Accountability Office will report to Congress annually on
agencies' compliance with the statute.\7\
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\7\ Id.
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The basic framework for the inflation calculation process remains
the same in that agencies must calculate the increase in inflation
according to a cost-of-living index and apply this percentage to each
CMP to establish a new maximum amount. The resulting adjustment permits
but does not require assessment at the new maximum level. Agencies must
publish the adjusted maximum amounts in the Federal Register, as they
did prior to the 2015 amendments.
However, the 2015 amendments do make a significant change to the
calculations for the first year by requiring an initial catch-up
adjustment to re-set penalty levels.\8\ In 2016, agencies must measure
inflation by comparing the cost-of-living index for the year in which
each CMP was established or last adjusted under a provision other than
the FCPIA Act with the index for 2015.\9\ That is, agencies must
disregard the inflation adjustments that they have made under the FCPIA
Act since 1996, determine when Congress initially established or last
modified each CMP, and adjust for inflation between that year and 2015.
This calculation is based on the amount of the CMP as Congress set it,
not the adjustments that agencies have made since 1996 under the FCPIA
Act. The amount of the catch-up adjustment is separately limited to 150
percent of the CMP maximum in effect as of November 2, 2015, when the
2015 amendments became effective.\10\
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\8\ Public Law 114-74, sec. 701(b)(2)(B), 129 Stat. 600,
codified at 28 U.S.C. 2461 note.
\9\ Id.
\10\ Id.
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The next section provides more detail on the revised inflation
procedures.

B. Statutory Procedures for Calculating Adjustments and OMB Guidance

This section provides a detailed explanation of the inflation
adjustment procedures under the 2015 amendments, including the 150
percent cap on the 2016 adjustment, the discretionary exception that
agencies may invoke to limit the required increases based on negative
economic impact or social costs, and an exception that agencies may
apply when a CMP has been increased by a greater amount than the
current calculation within the preceding 12 months. The 150 percent cap
applies to one CMP within NCUA's jurisdiction, namely the CMP for
violating NCUA security requirements.\11\ The Board does not seek to
invoke the discretionary exception based on negative economic impact or
social costs or the exception for greater increases in the preceding 12
months.
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\11\ 12 U.S.C. 1785(e)(3).
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In the FCPIA Act, the term ``this Act'' is used throughout to refer
to the entire FCPIA Act as amended, not merely the 2015 amendments or
prior amendments. In 2016, agencies must determine the percentage
increase in inflation by comparing the October 2015 CPI-U with the CPI-
U for October in the year ``during which the amount of such civil
monetary penalty was established or adjusted pursuant to a provision of
law other than this Act.'' \12\ Also, the 2015 amendments provide that
the percentage increase in inflation must be applied to the CMP ``as it
was most recently established or adjusted under a provision of law
other than this Act.'' \13\ The increase must be rounded to the nearest
dollar.\14\ The new maximum CMP is calculated by dividing the October
2015 CPI-U by the CPI-U for October of the year when Congress
established or last modified the CMP. The resulting multiplier is
applied to the original or modified maximum amount set by Congress to
find the new maximum amount.
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\12\ Public Law 114-74, sec. 701(b)(2)(A), 129 Stat. 600,
codified at 28 U.S.C. 2461 note. 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/.
\13\ Public Law 114-74, sec. 701(b)(2)(B), 129 Stat. 600,
codified at 28 U.S.C. 2461 note.
\14\ Public Law 114-74, sec. 701(b)(2)(A), 129 Stat. 600,
codified at 28 U.S.C. 2461 note.
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In making the calculations, the Board refers to the year in which
the statute establishing the CMP was enacted, even if the statute
provided that the CMP would not go into effect until a later year. In
2015, the Board referred to the year in which the statutes establishing
the CMPs became effective.\15\ The Board has determined that
disregarding delayed effective dates is more consistent with the FCPIA
Act's language, as well as OMB's guidance.\16\
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\15\ The CMPs for senior examiner conflicts of interest,
appraisal independence standards, and display of the NCUA insurance
logo were enacted with delayed effective dates.
\16\ Office of Mgmt. & Budget, Exec. Office of the President,
OMB Memorandum No. M-16-06, Implementation of the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015, at 3, 6
(2016).
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After completing this calculation for each CMP, agencies must also
consider the 150 percent cap, the exception based on a greater increase
within the preceding 12 months of the required adjustment, and the
exception based on negative economic impact or social costs. These
considerations are described in detail below.
First, ``the amount of the increase in a civil monetary penalty . .
. shall not exceed 150 percent of the amount of that civil monetary
penalty on the date of enactment'' of the 2015 amendments.\17\ This
mandatory cap applies only to the 2016 initial catch-up adjustment. The
150 percent cap applies to the amount of the increase in the CMP.
Accordingly, the final maximum amount for each CMP is capped at 250

[[Page 40154]]

percent of its current level.\18\ Based on the Board's calculations,
this cap applies only to NCUA's security requirements CMP.\19\
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\17\ Public Law 114-74, sec. 701(b)(2)(B), 129 Stat. 600,
codified at 28 U.S.C. 2461 note.
\18\ For consistency, the Board refers to this limitation as the
150 percent cap throughout this rule.
\19\ 12 U.S.C. 1785(e)(3).
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Second, if a CMP ``is, during the 12 months preceding a required
cost-of-living adjustment, increased by an amount greater than the
amount of the adjustment required . . ., the head of the agency is not
required'' to make the adjustment.\20\ The Board has compared the
projected increases with the increases that it made in 2015.\21\ The
only CMP that was increased by a greater amount in 2015 than it would
be under the current adjustments is the appraisal independence
standards CMP.\22\ The Board will not invoke the exception in this case
because: (1) The difference between the existing maximum and the new
maximum under the current adjustments is immaterial; and (2) setting
the new maximum without invoking this exception will place NCUA's CMP
at the same level as the federal banking regulators and the Consumer
Financial Protection Bureau, which will be adjusting this CMP for the
first time this year.
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\20\ Public Law 114-74, sec. 701(b)(1)(D), 129 Stat. 600,
codified at 28 U.S.C. 2461 note.
\21\ The Board notes that this exception is not limited to the
initial catch-up adjustment and could apply in the future.
\22\ 15 U.S.C. 1639e(k).
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Third, only for the 2016 adjustment, an agency may seek to limit
the amount of an adjustment if it determines that the otherwise-
required adjustment would have a ``negative economic impact'' or that
``the social costs'' of the increase ``outweigh the benefits.'' \23\ To
invoke this discretionary exception in 2016, an agency must first
publish a notice of proposed rulemaking with an opportunity to comment
on the proposed invocation of the exception, and the Director of OMB
must concur with the agency's determination.\24\ OMB's guidance states
that agencies should consult with OMB before proposing to invoke this
limitation and must submit the proposal to OMB by May 2, 2016.\25\ The
memorandum also states that OMB expects ``determination concurrences''
to be rare.\26\
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\23\ Public Law 114-74, sec. 701(b)(1)(D), 129 Stat. 599-600,
codified at 28 U.S.C. 2461 note.
\24\ Id.
\25\ Office of Mgmt. & Budget, Exec. Office of the President,
OMB Memorandum No. M-16-06, Implementation of the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015, at 3
(2016).
\26\ Id.
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The statute does not define ``negative economic impact'' or
``social costs.'' Given these statutory criteria and historical trends
in NCUA's CMP assessments, the Board will not seek to invoke this
exception for any of its CMP authorities.
In addition to the statute, the Board has reviewed OMB's guidance.
On February 24, 2016, as required by the 2015 amendments, OMB published
guidance for agencies to implement the new procedures, including the
2016 catch-up adjustment.\27\ OMB's guidance covers the following
issues: (1) Identifying CMPs to which the law applies; (2) completing
the 2016 catch-up adjustment; (3) making future inflation adjustments;
and (4) performing agency oversight of inflation adjustments. The Board
has reviewed the guidance and finds that the Board's calculations of
the increases and the 150 percent cap are wholly consistent with the
guidance. Further, the Board finds that it has appropriately identified
CMPs subject to adjustment under the FCPIA Act. All of the adjusted
CMPs are set by federal law at specific maximums, are assessed by NCUA
under the Federal Credit Union Act or other federal statutes, and are
assessed or enforced through agency proceedings or civil actions in the
federal courts.\28\ The Board will also review OMB's guidance in
connection with future adjustments and its annual financial reporting
requirement.
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\27\ Office of Mgmt. & Budget, Exec. Office of the President,
OMB Memorandum No. M-16-06, Implementation of the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (2016).
\28\ 28 U.S.C. 2461 note, Sec. 3(2).
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In sum, under the statute, the Board must determine: (1) When
Congress established or most recently modified each CMP; (2) the amount
of each CMP as set by Congress at that time; (3) the increase in each
CMP based on the CPI-U; (4) whether the increase must be limited by the
150 percent cap; (5) whether the Board will invoke the exception based
on a greater increase in a CMP maximum amount in the preceding 12
months; and (6) whether the Board will seek to invoke the exception to
limit the increases based on negative economic impact or social costs.
Accordingly, the Board has reviewed the CMPs within its
jurisdiction to determine when Congress established or last modified
each CMP and to determine the amount set by Congress. Next, the Board
applied the appropriate inflationary multiplier to the maximum amount
of each CMP as it was established or last modified by Congress in order
to determine the new maximum. Finally, the Board considered the 150
percent cap, the exception based on greater increases in the preceding
12 months, and the exception based on negative economic impact or
social costs. The next section presents the calculations and applies
the 150 percent cap and the two exceptions in detail to arrive at the
new maximum CMP amounts to be published in the Federal Register.

II. Calculation of Adjustments

A. Penalty Adjustment Calculations

Consistent with the NCUA's September 2015 CMP adjustments, the
Board provides the inflation calculations in table format immediately
below. The separate table included in the regulatory text section to be
published at 12 CFR 747.1001 shows only the adjusted CMPs, not the
calculations leading to the adjusted levels. The table below calculates
the projected increase by carrying out the steps described above. The
multiplier, which is the quotient of the October 2015 CPI-U divided by
the CPI-U for October of the year noted in parentheses, is applied to
the maximum amount as originally established or last modified by
Congress to calculate the new maximum. The final maximum amount is the
lesser of the calculated maximum and the 150 percent cap.

[[Page 40155]]

Table--Calculation of Maximum CMP Adjustments
--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted maximum ($)
Projected new 150 Percent (lesser of projected
Citation Description/tier \29\ Original maximum ($) Multiplier maximum cap ($) \30\ new maximum and 150
percent cap)
--------------------------------------------------------------------------------------------------------------------------------------------------------
12 U.S.C. 1782(a)(3)............. Inadvertent failure to 2,000............... 1.89631 3,787 8,000 3,787.
submit a report or the (1989)
inadvertent submission
of a false or misleading
report.
12 U.S.C. 1782(a)(3)............. Non-inadvertent failure 20,000.............. 1.89631 37,872 80,000 37,872.
to submit a report or (1989)
the non-inadvertent
submission of a false or
misleading report.
12 U.S.C. 1782(a)(3)............. Failure to submit a Lesser of 1,000,000 1.89631 1,893,610 3,562,500. Lesser of 1,893,610
report or the submission or 1% of total CU (1989) 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 2,000............... 1.73099 3,462 8,000 3,462.
inadvertent failure to (1991)
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- 20,000.............. 1.73099 34,620 80,000 34,620.
inadvertent failure to (1991)
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 1,000,000 1.73099 1,730,990 3,562,500 Lesser of 1,730,990
submit a certified or 1% of total CU (1991) 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................. 1.17858 118 275 118.
insurance logo (2006)
requirements.
12 U.S.C. 1785(e)(3)............. Non-compliance with NCUA 100................. 6.03650 554 275 275.
security requirements. (1970)
12 U.S.C. 1786(k)(2)(A).......... Tier 1 CMP for violations 5,000............... 1.89631 9,468 21,250 9,468.
of law, regulation, and (1989)
other orders or
agreements.
12 U.S.C. 1786(k)(2)(B).......... Tier 2 CMP for violations 25,000.............. 1.89631 47,340 106,250 47,340.
of law, regulation, and (1989)
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 1,000,000........... 1.89631 1,893,610 3,812,500 1,893,610.
committing the (1989)
violations under Tier 1
or 2 (natural person).
12 U.S.C. 1786(k)(2)(C).......... Tier 3 (same) (CU)....... Lesser of 1,000,000 1.89631 1,893,610 3,812,500 Lesser of 1,893,610
or 1% of total CU (1989) or 1% of total CU
assets. assets.
12 U.S.C. 1786(w)(5)(A)(ii)...... Non-compliance with 250,000............. 1.24588 311,470 687,500 311,470.
senior examiner post- (2004)
employment restrictions.
15 U.S.C. 1639e(k)............... Non-compliance with 10,000.............. 1.08745 10,875 27,500 10,875.
appraisal independence (2010)
standards (first
violation).
15 U.S.C. 1639e(k)............... Subsequent violations of 20,000.............. 1.08745 21,749 50,000 21,749.
the same. (2010)
42 U.S.C. 4012a(f)(5)............ Non-compliance with flood 2,000............... 1.02819 2,056 5,000 2,056.
insurance requirements. (2012)
--------------------------------------------------------------------------------------------------------------------------------------------------------
\29\ The table uses condensed descriptions of CMP tiers. Refer to the U.S. Code citations for complete descriptions.
\30\ This column displays 250 percent of the current maximums found at 12 CFR 747.1001.

[[Page 40156]]

B. Application of the 150 Percent Cap and Two Exceptions

This section describes in detail the Board's consideration of the
150 percent cap, the exception based on greater increases in the
preceding 12 months, and the exception based on negative economic
impact or social costs.
First, as shown in the table above, the Board has applied the 150
percent cap on the amount of the increase of the initial adjustments
and has determined that it must limit the increase in the security
requirements CMP.\31\ The other CMPs are not affected.
---------------------------------------------------------------------------

\31\ 12 U.S.C. 1785(e)(3).
---------------------------------------------------------------------------

Second, the Board has compared the increases calculated above with
the increases that it made in September 2015 \32\ to determine whether
any of those increases are greater than the increases calculated for
2016. In September 2015, the Board adjusted this CMP to $11,000.\33\
This occurred because under the pre-2015 amendments procedures, the
Board rounded the amount of the increase to the nearest multiple of
$1,000. Under the amended FCPIA Act, the Board could leave this
adjustment in place because ``during the 12 months preceding [the]
required cost-of-living adjustment,'' the Board increased the CMP ``by
an amount greater than the amount of the adjustment required'' by the
new calculation.\34\ Under these circumstances, the Board is ``not
required'' to make the otherwise-required adjustment.\35\ The Board has
determined that it will not invoke this exception, which is not
mandatory. First, the difference between the maximum set in 2015 and
the maximum calculated above is immaterial. Second, the Board expects
the federal banking regulators and the Consumer Financial Protection
Bureau, which also have jurisdiction to enforce this CMP, to make their
first adjustment of this CMP this year. By declining to invoke this
exception, the Board will set the maximum at the same level as those
agencies, which means that parties subject to this CMP will not face
differing maximums based on which agency has jurisdiction. This
exception does not apply to the other CMPs because the adjustments
required in 2016 exceed those made in 2015.
---------------------------------------------------------------------------

\32\ These increases are set forth at 80 FR 57285-286 (Sept. 23,
2015).
\33\ 80 FR 57285 (Sept. 23, 2015).
\34\ Public Law 114-74, sec. 701(b)(1)(D), 129 Stat. 600,
codified at 28 U.S.C. 2461 note.
\35\ Id.
---------------------------------------------------------------------------

Finally, the Board does not seek to invoke the discretionary
limitation tied to ``negative economic impact'' or ``social costs''
posed by the otherwise-required increases. The statute and the OMB
guidance do not define these terms. In applying these criteria, the
Board has considered the overall amount of its CMP assessments and
their likely impact on credit unions and individuals. NCUA historically
has not assessed CMPs frequently. They have averaged 10.6 a year, or
less than one a month, over the past quarter century. Furthermore, when
NCUA has assessed CMPs it has not usually assessed them at or near the
maximum levels allowed by law, which would be most likely to invoke
economic impact or social cost concerns. The Board reviewed the 281 CMP
orders that it has issued since 1990 and found that they total
approximately $665,000, with an average (mean) value of approximately
$2,400. The table at the end of this section summarizes this
information. Based on historical trends, third tier CMPs appear likely
to remain rare. Moreover, NCUA considers the size of the credit union
in determining the amount of a CMP assessment. These factors indicate
that the increased maximums will not cause a negative economic impact
or social costs. Also, for most of its CMPs, the Board is required by
statute to consider potential mitigating factors in determining a CMP
assessment amount.\36\ These considerations include the party's
financial resources.\37\ Interagency policy on CMP assessments includes
this consideration.\38\ This requirement applies to all of the CMPs
that have maximum levels above $1,000,000. Thus, by their own terms,
these CMPs account for the financial impact on the penalized party,
which guards against negative economic impact or social costs. In
addition, the Board is not required to assess at the new maximum
amounts. Accordingly, the Board finds that the economic and social
considerations under the statute do not warrant seeking to invoke this
exception.
---------------------------------------------------------------------------

\36\ 12 U.S.C. 1786(k)(2)(G).
\37\ 12 U.S.C. 1786(k)(2)(G)(i).
\38\ Federal Financial Institutions Examination Council,
Assessment of Civil Money Penalties, 63 FR 30226 (June 3, 1998).

Table--NCUA CMP Assessments (1990-2016)
------------------------------------------------------------------------

------------------------------------------------------------------------
Number of CMPs.......................................... 281
Aggregate Amount of CMP Assessments..................... $665,208
Average (Mean) Amount of Assessments.................... $2,367
------------------------------------------------------------------------

C. Effective Date for Adjusted Maximum Amounts

Finally, the 2015 amendments changed the effective date provision
for adjusted CMPs. Before the 2015 amendments, the statute provided:
``Any increase under this Act in a civil monetary penalty shall apply
only to violations which occur after the date the increase takes
effect.'' \39\ Under that standard, the new maximums could only be
assessed for violations that occurred after the date the adjustment
took effect. The 2015 amendments changed this provision to read: ``Any
increase under this Act in a civil monetary penalty shall apply only to
civil monetary penalties, including those whose associated violation
predated such increase, which are assessed after the date the increase
takes effect.'' \40\ The OMB guidance notes this change.\41\ The
adjusted maximums now apply to CMPs assessed after the effective date
of the adjustment, even if the associated violation occurred before the
adjustment took effect. The Board is amending 12 CFR 747.1001(b) to
reflect this change.
---------------------------------------------------------------------------

\39\ Public Law 104-134, Sec. 31001(s)(1), 110 Stat. 1321-373
(Apr. 26, 1996).
\40\ Public Law 114-74, 129 Stat. 600 (Nov. 2, 2015), codified
at 28 U.S.C. 2461 note.
\41\ Office of Mgmt. & Budget, Exec. Office of the President,
OMB Memorandum No. M-16-06, Implementation of the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015, at 4
(2016).
---------------------------------------------------------------------------

III. Regulatory Procedures

A. Interim Final Rule Under the Administrative Procedure Act

In the 2015 amendments to the FCPIA Act, Congress directed agencies
to issue an interim final rule for the 2016 inflation adjustments.\42\
OMB's guidance reiterated this requirement and stated that agencies
therefore do not need to solicit comments prior to promulgating the
rule.\43\ The legislative directive provides an exception to the APA's
ordinary notice-and-comment requirement.\44\ In addition, the Board
finds that notice-and-comment procedures would be impracticable and
unnecessary under the APA because of: (1) the legislative directive to
issue an interim final rule; (2) the largely ministerial and technical
nature of the rule, which affords agencies limited

[[Page 40157]]

discretion in promulgating the rule; and (3) the statutory deadlines
for publishing and making the interim final rule effective.\45\ In
these circumstances, the Board finds good cause to issue an interim
final rule without issuing a notice of proposed rulemaking.
Accordingly, this interim final rule is issued without prior notice.
However, the Board invites comments on all aspects of the interim final
rule. The interim final rule will become effective 30 days from
publication in the Federal Register.\46\ The Board will review and
consider all comments before issuing a final rule.
---------------------------------------------------------------------------

\42\ Public Law 114-74, 129 Stat. 600 (Nov. 2, 2015), codified
at 28 U.S.C. 2461 note.
\43\ Office of Mgmt. & Budget, Exec. Office of the President,
OMB Memorandum No. M-16-06, Implementation of the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015, at 3
(2016).
\44\ See 5 U.S.C. 559; Asiana Airlines v. Fed. Aviation Admin.,
134 F.3d 393, 396-99 (D.C. Cir. 1998).
\45\ 5 U.S.C. 553(b)(3)(B); see Mid-Tex Elec. Co-op., Inc. v.
Fed. Energy Regulatory Comm'n, 822 F.2d 1123, 1133-34 (D.C. Cir.
1987).
\46\ See 5 U.S.C. 553(d).
---------------------------------------------------------------------------

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.\47\ For purposes of
this analysis, the Board considers small credit unions to be those
having under $100 million in assets.\48\ This interim 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.\49\ Because this interim final rule would
affect few, if any, small entities, the Board certifies that the
interim final rule will not have a significant economic impact on small
entities.
---------------------------------------------------------------------------

\47\ 5 U.S.C. 603(a).
\48\ Interpretive Ruling and Policy Statement 15-1, 80 FR 57512
(Sept. 24, 2015).
\49\ 12 U.S.C. 1786(k)(2)(G)(i).
---------------------------------------------------------------------------

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.\50\ 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 interim
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 interim final
rule will not create new paperwork burdens or modify any existing
paperwork burdens.
---------------------------------------------------------------------------

\50\ 44 U.S.C. 3507(d); 5 CFR part 1320.
---------------------------------------------------------------------------

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 interim 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 interim final rule does not
create any new authority or alter the underlying statutory authorities
that enable the Board to assess CMPs. Accordingly, this interim final
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 that this interim final 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 interim final rule will not
affect family well-being within the meaning of Section 654 of the
Treasury and General Government Appropriations Act, 1999.\51\
---------------------------------------------------------------------------

\51\ Public Law 105-277, 112 Stat. 2681 (Oct. 21, 1998).
---------------------------------------------------------------------------

F. Small Business Regulatory Enforcement Fairness Act

The Small Business Regulatory Enforcement Fairness Act of 1996 \52\
(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.\53\ The Board has submitted this interim final rule to OMB for it
to determine whether it is a ``major rule'' within the meaning of the
relevant sections of SBREFA.
---------------------------------------------------------------------------

\52\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996).
\53\ 5 U.S.C. 551.
---------------------------------------------------------------------------

List of Subjects in 12 CFR Part 747

Credit unions, Civil monetary penalties.

By the National Credit Union Administration Board on June 16,
2016.
Gerard S. Poliquin,
Secretary of the Board.

For the reasons stated above, the NCUA Board amends 12 CFR part 747
as follows:

PART 747--ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF
PRACTICE AND PROCEDURE, AND INVESTIGATIONS

0
1. The authority citation 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; Pub. L. 114-74.

Subpart K--Inflation Adjustment of Civil Monetary Penalties

0
2. Revise Sec. 747.1001 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 adjusted amounts, as calculated pursuant to the
statute:

------------------------------------------------------------------------
U.S. Code citation CMP Description New maximum amount
------------------------------------------------------------------------
(1) 12 U.S.C. 1782(a)(3).... Inadvertent failure $3,787.
to submit a report
or the inadvertent
submission of a
false or misleading
report.
(2) 12 U.S.C. 1782(a)(3).... Non-inadvertent 37,872.
failure to submit a
report or the non-
inadvertent
submission of a
false or misleading
report.

[[Page 40158]]

(3) 12 U.S.C. 1782(a)(3).... Failure to submit a 1,893,610 or 1
report or the percent of the
submission of a total assets of the
false or misleading credit union,
report done whichever is less.
knowingly or with
reckless disregard.
(4) 12 U.S.C. 1782(d)(2)(A). Tier 1 CMP for 3,462.
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- 34,620.
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 1,730,990 or 1
failure to submit a percent of the
certified statement total assets of the
or the submission credit union,
of a false or whichever is less.
misleading
statement done
knowingly or with
reckless disregard.
(7) 12 U.S.C. 1785(a)(3).... Non-compliance with 118.
insurance logo
requirements.
(8) 12 U.S.C. 1785(e) (3)... Non-compliance with 275.
NCUA security
requirements.
(9) 12 U.S.C. 1786(k)(2)(A). Tier 1 CMP for 9,468.
violations of law,
regulation, and
other orders or
agreements.
(10) 12 U.S.C. 1786(k)(2)(A) Tier 2 CMP for 47,340.
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 other
knowingly than an insured
committing the credit union:
violations under $1,893,610;
Tier 1 or 2 For an insured
(natural person). credit union:
$1,893,610 or 1
percent of the
total assets of the
credit union,
whichever is less.
(12) 12 U.S.C. Non-compliance with 311,470.
1786(w)(5)(ii). senior examiner
post-employment
restrictions.
(13) 15 U.S.C. 1639e(k)..... Non-compliance with First violation:
appraisal $10,875
independence Subsequent
requirements. violations:
$21,749.
(14) 42 U.S.C. 4012a(f)(5).. Non-compliance with 2,056.
flood insurance
requirements.
------------------------------------------------------------------------

(b) The adjusted amounts displayed in paragraph (a) of this section
apply to civil monetary penalties that are assessed after the date the
increase takes effect, including those whose associated violation or
violations predate the increase.

[FR Doc. 2016-14719 Filed 6-20-16; 8:45 am]
BILLING CODE 7535-01-P

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