Rules of Practice for Hearings, 47006-47009 [2016-16969]

Download as PDF 47006 Federal Register / Vol. 81, No. 139 / Wednesday, July 20, 2016 / Rules and Regulations § 2.327(d), to reflect advancements in technology and to bring its regulations in line with current agency practice. The revision to § 2.327(d) removes prescriptive requirements from the regulation and allows presiding officers flexibility in determining the method to prepare corrected transcripts. This change allows the presiding officer to list transcript changes in a table included in or appended to an order; issue a marked-up version of the transcript; issue a clean, revised version of the transcript; or select another method that ensures a clear and concise description of transcript changes. II. Rulemaking Procedure Under the Administrative Procedure Act (5 U.S.C. 553(b)(A)), notice and comment requirements do not apply ‘‘to interpretive rules, general statements of policy, or rules of agency organization, procedure, or practice.’’ Because this revision affects the NRC’s rules of agency procedure and practice, the notice and comment provisions of the Administrative Procedure Act do not apply. Moreover, the final rule does not change the substantive responsibilities of any person or entity regulated by the NRC. The amendments are effective upon publication in the Federal Register. Good cause exists under 5 U.S.C. 553(d) to dispense with the usual 30-day delay in the effective date of the final rule because the amendments are of a minor and administrative nature dealing with changes to certain sections that do not require action by any person or entity regulated by the NRC. III. Plain Writing The Plain Writing Act of 2010 (Pub. L. 111–274) requires Federal agencies to write documents in a clear, concise, and well-organized manner. The NRC has written this document to be consistent with the Plain Writing Act as well as the Presidential Memorandum, ‘‘Plain Language in Government Writing,’’ published June 10, 1998 (63 FR 31883). rmajette on DSK2TPTVN1PROD with RULES IV. National Environmental Policy Act The NRC has determined that this final rule is the type of action described in 10 CFR 51.22(c)(1). Therefore, neither an environmental impact statement nor environmental assessment has been prepared for this final rule. V. Paperwork Reduction Act This final rule does not contain a collection of information as defined in the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) and, therefore, is not subject to the requirements of the Paperwork Reduction Act of 1995. VerDate Sep<11>2014 14:53 Jul 19, 2016 Jkt 238001 VI. Congressional Review Act This final rule is not a rule as defined in the Congressional Review Act (5 U.S.C. 801–808). VII. Availability of Guidance The NRC will not be issuing guidance for this rulemaking because the revised rule applies to the NRC only and does not affect the rights and responsibilities of outside parties. List of Subjects in 10 CFR Part 2 Administrative practice and procedure, Antitrust, Byproduct material, Classified information, Confidential business information, Freedom of information, Environmental protection, Hazardous waste, Nuclear energy, Nuclear materials, Nuclear power plants and reactors, Penalties, Reporting and recordkeeping requirements, Sex discrimination, Source material, Special nuclear material, Waste treatment and disposal. For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended; the Energy Reorganization Act of 1974, as amended; and 5 U.S.C. 552 and 553, the NRC is adopting the following amendments to 10 CFR part 2. PART 2—AGENCY RULES OF PRACTICE AND PROCEDURE 1. The authority citation for part 2 continues to read as follows: ■ Authority: Atomic Energy Act of 1954, secs. 29, 53, 62, 63, 81, 102, 103, 104, 105, 161, 181, 182, 183, 184, 186, 189, 191, 234 (42 U.S.C. 2039, 2073, 2092, 2093, 2111, 2132, 2133, 2134, 2135, 2201, 2231, 2232, 2233, 2234, 2236, 2239, 2241, 2282); Energy Reorganization Act of 1974, secs. 201, 206 (42 U.S.C. 5841, 5846); Nuclear Waste Policy Act of 1982, secs. 114(f), 134, 135, 141 (42 U.S.C. 10134(f), 10154, 10155, 10161); Administrative Procedure Act (5 U.S.C. 552, 553, 554, 557, 558); National Environmental Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 note. Section 2.205(j) also issued under Sec. 31001(s), Pub. L. 104–134, 110 Stat. 1321–373 (28 U.S.C. 2461 note). 2. In § 2.327, revise paragraph (d) to read as follows: ■ § 2.327 Official recording; transcript. * * * * * (d) Transcript corrections. Corrections ordered or approved by the presiding officer must be included in the record through the issuance of an order by the presiding officer or the Secretary, as appropriate under the regulations in this part. The order shall reflect the corrections to the transcript through the use of a table, the issuance of a corrected or new transcript, or some other method selected by the presiding PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 officer that will ensure a clear and concise description of the corrections. Dated at Rockville, Maryland, this 14th day of July, 2016. For the Nuclear Regulatory Commission. Cindy Bladey, Chief, Rules, Announcements, and Directives Branch. Office of Administration. [FR Doc. 2016–17072 Filed 7–19–16; 8:45 am] BILLING CODE 7590–01–P FEDERAL RESERVE SYSTEM 12 CFR Part 263 [Docket No. R–1543] RIN 7100 AE–55 Rules of Practice for Hearings Board of Governors of the Federal Reserve System. ACTION: Interim final rule. AGENCY: The Board of Governors of the Federal Reserve System (the ‘‘Board’’) is issuing an interim final rule amending its rules of practice and procedure to adjust the amount of each civil monetary penalty (‘‘CMP’’) provided by law within its jurisdiction to account for inflation as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. DATES: This interim final rule is effective on August 1, 2016. Comments on the interim final rule must be received on or before August 30, 2016. ADDRESSES: When submitting comments, please consider submitting your comments by email or fax because paper mail in the Washington, DC area and at the Board may be subject to delay. You may submit comments, identified by Docket No. R–1543 and RIN 7100 AE 55, by any of the following methods: • Agency Web site: www.federalreserve.gov. Follow the instructions for submitting comments at www.federalreserve.gov/generalinfo/ foia/ProposedRegs.cfm. • Federal eRulemaking Portal: www.regulations.gov. Follow the instructions for submitting comments. • Email: regs.comments@ federalreserve.gov. Include the docket number in the subject line of the message. • Fax: (202) 452–3819 or (202) 452– 3102. • Mail: Address to Robert deV. Frierson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW., Washington, DC 20551. All public comments will be made available on the Board’s Web site at SUMMARY: E:\FR\FM\20JYR1.SGM 20JYR1 Federal Register / Vol. 81, No. 139 / Wednesday, July 20, 2016 / Rules and Regulations rmajette on DSK2TPTVN1PROD with RULES www.federalreserve.gov/generalinfo/ foia/ProposedRegs.cfm as submitted, unless modified for technical reasons. Accordingly, comments will not be edited to remove any identifying or contact information. Public comments may also be viewed electronically or in paper form in Room 3515, 1801 K Street NW. (between 18th and 19th Streets), Washington, DC 20551) between 9:00 a.m. and 5:00 p.m. on weekdays. FOR FURTHER INFORMATION CONTACT: Katherine H. Wheatley, Associate General Counsel (202/452–3779), or Mehrnoush Bigloo, Senior Attorney (202/475–6361), Legal Division, Board of Governors of the Federal Reserve System, 20th Street and Constitution Ave. NW., Washington, DC 20551. For users of Telecommunication Device for the Deaf (TDD) only, contact 202/263– 4869. SUPPLEMENTARY INFORMATION: Federal Civil Penalties Inflation Adjustment Act The Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. 2461 note (‘‘FCPIA Act’’), requires Federal agencies to adjust, by regulation, the CMPs within their jurisdiction to account for inflation. The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the ‘‘2015 Act’’ or the ‘‘Act’’) 1 amended the FCPIA to require the adjustment to be made annually rather than every four years, and to direct federal agencies to make the ‘‘catch-up’’ adjustment—the first inflation adjustment after the date of enactment of the 2015 Act—through an interim final rulemaking, to take effect no later than August 1, 2016.2 The Board is issuing this interim final rule to set the new civil monetary penalty levels pursuant to the required catch-up adjustment. The Board will apply these adjusted maximum penalty levels to any penalties assessed on or after August 1, 2016. Penalties assessed prior to August 1, 2016, will be subject to the amounts set in the Board’s last adjustment pursuant to the FCPIA.3 Under the 2015 Act, the initial catchup adjustment is the percentage for each civil monetary penalty by which the Consumer Price Index for the month of October 2015 exceeds the Consumer Price Index for the month of October of the calendar year during which the amount of the penalty was established or adjusted other than pursuant to the FCPIA. On February 24, 2016, as directed by the 2015 Act, the Office of 1 Pub. L. 114–74, 129 Stat. 599 (2015) (codified at 28 U.S.C. 2461 note). 2 28 U.S.C. 2461 note, section 4(b)(1). 3 77 FR 68,680 (Nov. 16, 2012). VerDate Sep<11>2014 14:53 Jul 19, 2016 Jkt 238001 Management and Budget (OMB) issued guidance to agencies on implementing the required catch-up adjustment which included the relevant inflation multipliers per calendar year.4 Using OMB’s multipliers, the Board calculated the adjusted penalties for its civil monetary penalties, rounding the penalties to the nearest dollar. Under the 2015 Act, the amount of any increase may not exceed 150 percent of the amount of the penalty on the date of the enactment of the 2015 Act, which is November 2, 2015.5 Accordingly, in a few cases where the calculated penalties exceeded the statutory maximum, the Board adjusted the respective penalty amount to 250 percent of the prior penalty. The Board also determined that none of the increases resulting from application of the 2015 Act’s formula would have a negative economic impact and that any social costs of increasing those penalty limits would not outweigh the benefits of the increase. For this reason, the Board did not seek an exception from the application of the formula as permitted by section 4(c) of the 2015 Act. Administrative Procedure Act Pursuant to the Administrative Procedure Act (the ‘‘APA’’), notice of proposed rulemaking and opportunity for public comment are not required prior to the issuance of a final rule if an agency, for good cause, finds that ‘‘notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.’’ 6 As discussed above, the Board calculated the initial catch-up adjustment strictly in accordance with the requirements of the 2015 Act and OMB’s implementing guidance. Moreover, the 2015 Act expressly requires the Board to publish the new catch-up penalty levels through an interim final rule, meaning that the rule can become effective prior to the receipt of public comments.7 For these reasons, the Board finds good cause to determine that publishing a notice of proposed rulemaking and providing opportunity for public comment prior to adopting a final rule are unnecessary.8 Nevertheless, because the Board is required to publish the catch-up penalty levels through an interim final rulemaking, the Board is inviting comments on this interim final rule. In view of the fact that the Board has calculated the catch-up adjustments 4 OMB Memorandum M–16–06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Feb. 24, 2016). 5 28 U.S.C. 2461 note, section 4(b)(2)(C). 6 5 U.S.C. 553(b)(3)(B). 7 28 U.S.C. 2461 note, section 4(b)(1). 8 5 U.S.C. 553(b). PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 47007 strictly in accordance with OMB’s implementing guidance, the Board specifically encourages comments identifying any issues with the Board’s calculations under that guidance. The Board also invites comments regarding its determination that the bases for an exception under section 4(c) of the 2015 Act were not met. Regulatory Flexibility Act The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires a regulatory flexibility analysis only for rules for which an agency is required to publish a general notice of proposed rulemaking. Because the 2015 Act requires agencies’ catch-up adjustments to be made through an interim final rule, the Board is not publishing a notice of proposed rulemaking. Therefore, the Regulatory Flexibility Act does not apply. Paperwork Reduction Act There is no collection of information required by this interim final rule that would be subject to the Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq. List of Subjects in 12 CFR Part 263 Administrative practice and procedure, Claims, Crime, Equal access to justice, Lawyers, Penalties. Authority and Issuance For the reasons set forth in the preamble, the Board of Governors amends 12 CFR part 263 as follows: PART 263—RULES OF PRACTICE FOR HEARINGS 1. The authority citation for part 263 is revised to read as follows: ■ Authority: 5 U.S.C. 504, 554–557; 12 U.S.C. 248, 324, 334, 347a, 504, 505, 1464, 1467, 1467a, 1817(j), 1818, 1820(k), 1829, 1831o, 1831p–1, 1832(c), 1847(b), 1847(d), 1884, 1972(2)(F), 3105, 3108, 3110, 3349, 3907, 3909(d), 4717; 15 U.S.C. 21, 78l(i), 78o–4, 78o–5, 78u–2; 1639e(k); 28 U.S.C. 2461 note; 31 U.S.C. 5321; and 42 U.S.C. 4012a. 2. Section 263.65 is revised to read as follows: ■ § 263.65 Civil monetary penalty inflation adjustments. (a) Inflation adjustments. In accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990, the Board has set forth in paragraph (b) of this section the adjusted maximum amounts for each civil monetary penalty provided by law E:\FR\FM\20JYR1.SGM 20JYR1 47008 Federal Register / Vol. 81, No. 139 / Wednesday, July 20, 2016 / Rules and Regulations within the Board’s jurisdiction. The authorizing statutes contain the complete provisions under which the Board may seek a civil monetary penalty. The adjusted civil monetary penalties apply only to penalties assessed on or after August 1, 2016. (b) Maximum civil monetary penalties. The maximum civil monetary penalties as set forth in the referenced statutory sections are set forth in the table in this paragraph (b). Adjusted civil monetary penalty rmajette on DSK2TPTVN1PROD with RULES Statute 12 U.S.C. 324: Inadvertently late or misleading reports, inter alia ....................................................................................................................... Other late or misleading reports, inter alia ................................................................................................................................... Knowingly or reckless false or misleading reports, inter alia ....................................................................................................... 12 U.S.C. 334 ...................................................................................................................................................................................... 12 U.S.C. 374a .................................................................................................................................................................................... 12 U.S.C. 504: First Tier ....................................................................................................................................................................................... Second Tier .................................................................................................................................................................................. Third Tier ...................................................................................................................................................................................... 12 U.S.C. 505: First Tier ....................................................................................................................................................................................... Second Tier .................................................................................................................................................................................. Third Tier ...................................................................................................................................................................................... 12 U.S.C. 1464(v)(4) ........................................................................................................................................................................... 12 U.S.C. 1464(v)(5) ........................................................................................................................................................................... 12 U.S.C. 1464(v)(6) ........................................................................................................................................................................... 12 U.S.C. 1467a(i)(2) .......................................................................................................................................................................... 12 U.S.C. 1467a(i)(3) .......................................................................................................................................................................... 12 U.S.C. 1467a(r): First Tier ....................................................................................................................................................................................... Second Tier .................................................................................................................................................................................. Third Tier ...................................................................................................................................................................................... 12 U.S.C. 1817(j)(16): First Tier ....................................................................................................................................................................................... Second Tier .................................................................................................................................................................................. Third Tier ...................................................................................................................................................................................... 12 U.S.C. 1818(i)(2): First Tier ....................................................................................................................................................................................... Second Tier .................................................................................................................................................................................. Third Tier ...................................................................................................................................................................................... 12 U.S.C. 1820(k)(6)(A)(ii) ................................................................................................................................................................... 12 U.S.C. 1832(c) ................................................................................................................................................................................ 12 U.S.C. 1847(b) ................................................................................................................................................................................ 12 U.S.C. 1847(d): First Tier ....................................................................................................................................................................................... Second Tier .................................................................................................................................................................................. Third Tier ...................................................................................................................................................................................... 12 U.S.C. 1884 .................................................................................................................................................................................... 12 U.S.C. 1972(2)(F): First Tier ....................................................................................................................................................................................... Second Tier .................................................................................................................................................................................. Third Tier ...................................................................................................................................................................................... 12 U.S.C. 3909(d) ................................................................................................................................................................................ 12 U.S.C. 3110(a) ................................................................................................................................................................................ 12 U.S.C. 3110(c): First Tier ....................................................................................................................................................................................... Second Tier .................................................................................................................................................................................. Third Tier ...................................................................................................................................................................................... 15 U.S.C. 78u–2(b)(1): For a natural person ..................................................................................................................................................................... For any other person .................................................................................................................................................................... 15 U.S.C. 78u–2(b)(2): For a natural person ..................................................................................................................................................................... For any other person .................................................................................................................................................................... 15 U.S.C. 78u–2(b)(3): For a natural person ..................................................................................................................................................................... For any other person .................................................................................................................................................................... 15 U.S.C. 1639e(k)(1) ......................................................................................................................................................................... 15 U.S.C. 1639e(k)(2) ......................................................................................................................................................................... 42 U.S.C. 4012a(f)(5) .......................................................................................................................................................................... VerDate Sep<11>2014 14:53 Jul 19, 2016 Jkt 238001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\20JYR1.SGM 20JYR1 $3,787 37,872 1,893,610 275 275 9,468 47,340 1,893,610 9,468 47,340 1,893,610 3,787 37,872 1,893,610 47,340 47,340 3,787 37,872 1,893,610 9,468 47,340 1,893,610 9,468 47,340 1,893,610 311,470 2,750 47,340 3,787 37,872 1,893,610 275 9,468 47,340 1,893,610 2355 43,275 3,462 34,620 1,730,990 8,908 89,078 89,078 445,390 178,156 890,780 10,875 21,749 2056 Federal Register / Vol. 81, No. 139 / Wednesday, July 20, 2016 / Rules and Regulations By order of the Board of Governors of the Federal Reserve System, July 13, 2016. Robert deV. Frierson, Secretary of the Board. Billing Code: 6210–01–P [FR Doc. 2016–16969 Filed 7–19–16; 8:45 am] BILLING CODE 6210–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 91 I. Overview of Final Rule This action amends Appendix G of part 91 of Title 14 of the Code of Federal Regulations (14 CFR) by removing the requirement that any applicant for a Reduced Vertical Separation Minimum (RVSM) authorization must submit an RVSM maintenance program to the FAA for approval. [Docket No.: FAA–2015–1746; Amdt. No. 91–342] RIN 2120–AK54 Changes to the Application Requirements for Authorization To Operate in Reduced Vertical Separation Minimum Airspace Federal Aviation Administration (FAA), DOT. ACTION: Final rule. AGENCY: This action revises the FAA’s requirements for an application to operate in Reduced Vertical Separation Minimum (RVSM) airspace and eliminates the burden and expense of developing, processing, and approving RVSM maintenance programs. As a result of this revision, an applicant to operate in RVSM airspace will no longer be required to develop and submit an RVSM maintenance program solely for the purpose of obtaining an RVSM authorization. Because of other, independent FAA airworthiness regulations, all aircraft operators remain required to maintain RVSM equipment in an airworthy condition. DATES: Effective August 19, 2016. ADDRESSES: For information on where to obtain copies of rulemaking documents and other information related to this final rule, see ‘‘How To Obtain Additional Information’’ in the SUPPLEMENTARY INFORMATION section of this document. FOR FURTHER INFORMATION CONTACT: For technical questions concerning this action, contact Charles Fellows, Aviation Safety Inspector, Avionics Branch, Aircraft Maintenance Division, Flight Standards Services, AFS–360, Federal Aviation Administration, 950 L’Enfant Plaza North SW., Washington, DC 20024; telephone (202) 267–1706; email Charles.Fellows@faa.gov. SUPPLEMENTARY INFORMATION: rmajette on DSK2TPTVN1PROD with RULES SUMMARY: Authority for This Rulemaking The FAA’s authority to issue rules regarding aviation safety is found in VerDate Sep<11>2014 14:53 Jul 19, 2016 Jkt 238001 Title 49 of the United States Code. Sections 106(f), 40113, and 44701 authorize the Administrator to prescribe regulations necessary for aviation safety. Section 40103 authorizes the Administrator to prescribe regulations to enhance the efficiency of the national airspace. This rulemaking is within the scope of these authorities because it removes an existing safety and airspacerelated regulation that the FAA no longer finds necessary for aviation safety. II. Background The FAA’s vertical separation standards establish the vertical distance that must separate aircraft routes in the national airspace system. In the early 1970’s, rising air-traffic volume and fuel costs sparked an interest in reducing vertical separation standards for aircraft operating above flight level (FL) 290 (above 18,000 ft., flight levels are assigned in 500-ft. increments; FL290 represents an pressure altitude of 29,000 ft. referenced to a barometric pressure of 29.92 inches at sea level). At the time, the FAA required aircraft operating above FL290 to maintain a minimum of 2,000 ft. of vertical separation. Use of high-altitude routes was desirable, however, because the diminished atmospheric drag at these altitudes results in enhanced aircraft efficiency and a corresponding decrease in fuel consumption. Operators, therefore, sought and continue to seek not only the most direct routes, but also the most efficient altitudes for operation of their aircraft. Higher demand for these highaltitude routes has resulted in greater congestion. In 1981, the FAA initiated the Vertical Studies Program. This program, in conjunction with the RTCA (formerly Radio Technical Commission for Aeronautics) Special Committee (SC)– 150 and the International Civil Aviation Organization (ICAO) Review of General Concept of Separation Panel (RGCSP), determined: • RVSM is ‘‘technically feasible without imposing unreasonably demanding technical requirements on the equipment;’’ • RVSM could provide ‘‘significant benefits in terms of economy and enroute airspace capacity;’’ and PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 47009 • Implementation of RVSM would require ‘‘sound operational judgment supported by an assessment of system performance based on: Aircraft altitudekeeping capability, operational considerations, system performance monitoring, and risk assessment.’’ In response to the findings made by the Vertical Separation Program, the FAA began a two-phase implementation of RVSM operations for aircraft registered in the United States (U.S.). In 1997, and as the first phase, the FAA published two amendments to part 91 of Title 14 of the Code of Federal Regulations (14 CFR). The first amendment established § 91.706 (Operations within airspace designed as Reduced Vertical Separation Minimum Airspace), which, among other things, allows operators of U.S.-registered aircraft to fly in RVSM airspace outside of the U.S. Appendix G (Operations in Reduced Vertical Separation Minimum (RVSM) Airspace), was added which contained a set of operational, aircraft design, and other standards applicable to those seeking to operate in RVSM airspace. See Reduced Vertical Separation Minimum Operations, (62 FR 17480; Apr. 9, 1997). Appendix G includes the requirement that all applicants for RVSM authorization must submit an approved RVSM maintenance program to the FAA. The second phase of RVSM implementation occurred in October 2003, with the publication of a second RVSM-related FAA rulemaking. Reduced Vertical Separation Minimum in Domestic Airspace, (68 FR 61304; Oct. 27, 2003 and 68 FR 70132; Dec. 17, 2003). The 2003 rule introduced RVSM airspace over the U.S. and, like the 1997 rulemaking, required all U.S.-registered RVSM operators to comply with the application, operations, and aircraft design requirements of part 91, appendix G. The FAA’s RVSM program allows for 1,000 ft. of vertical separation for aircraft between FL290 and FL410 in U.S. airspace. Before the 2003 rule, air traffic controllers could only assign Instrument Flight Rules (IFR) aircraft flying at FL290 and above to FL290, 310, 330, 350, 370, 390, and 410 since the existing vertical separation standard was 2,000 ft. After the rule changes, IFR aircraft could also fly at FL300, 320, 340, 360, 380, and 400—nearly doubling capacity within this particular segment of airspace, mitigating the fuel penalties attributed to flying at sub-optimum altitudes, and increasing the flexibility of air traffic control. In 2008, the FAA reviewed its RVSM authorizations, which applied to more than 15,000 U.S.-registered aircraft. The FAA’s evaluation found that the existing E:\FR\FM\20JYR1.SGM 20JYR1

Agencies

[Federal Register Volume 81, Number 139 (Wednesday, July 20, 2016)]
[Rules and Regulations]
[Pages 47006-47009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16969]


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FEDERAL RESERVE SYSTEM

12 CFR Part 263

[Docket No. R-1543]
RIN 7100 AE-55


Rules of Practice for Hearings

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Interim final rule.

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SUMMARY: The Board of Governors of the Federal Reserve System (the 
``Board'') is issuing an interim final rule amending its rules of 
practice and procedure to adjust the amount of each civil monetary 
penalty (``CMP'') provided by law within its jurisdiction to account 
for inflation as required by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015.

DATES: This interim final rule is effective on August 1, 2016. Comments 
on the interim final rule must be received on or before August 30, 
2016.

ADDRESSES: When submitting comments, please consider submitting your 
comments by email or fax because paper mail in the Washington, DC area 
and at the Board may be subject to delay. You may submit comments, 
identified by Docket No. R-1543 and RIN 7100 AE 55, by any of the 
following methods:
     Agency Web site: www.federalreserve.gov. Follow the 
instructions for submitting comments at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments.
     Email: regs.comments@federalreserve.gov. Include the 
docket number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Address to Robert deV. Frierson, Secretary, Board of 
Governors of the Federal Reserve System, 20th Street and Constitution 
Avenue NW., Washington, DC 20551.
    All public comments will be made available on the Board's Web site 
at

[[Page 47007]]

www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, 
unless modified for technical reasons. Accordingly, comments will not 
be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room 
3515, 1801 K Street NW. (between 18th and 19th Streets), Washington, DC 
20551) between 9:00 a.m. and 5:00 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: Katherine H. Wheatley, Associate 
General Counsel (202/452-3779), or Mehrnoush Bigloo, Senior Attorney 
(202/475-6361), Legal Division, Board of Governors of the Federal 
Reserve System, 20th Street and Constitution Ave. NW., Washington, DC 
20551. For users of Telecommunication Device for the Deaf (TDD) only, 
contact 202/263-4869.

SUPPLEMENTARY INFORMATION:

Federal Civil Penalties Inflation Adjustment Act

    The Federal Civil Penalties Inflation Adjustment Act of 1990, 28 
U.S.C. 2461 note (``FCPIA Act''), requires Federal agencies to adjust, 
by regulation, the CMPs within their jurisdiction to account for 
inflation. The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (the ``2015 Act'' or the ``Act'') \1\ amended 
the FCPIA to require the adjustment to be made annually rather than 
every four years, and to direct federal agencies to make the ``catch-
up'' adjustment--the first inflation adjustment after the date of 
enactment of the 2015 Act--through an interim final rulemaking, to take 
effect no later than August 1, 2016.\2\ The Board is issuing this 
interim final rule to set the new civil monetary penalty levels 
pursuant to the required catch-up adjustment. The Board will apply 
these adjusted maximum penalty levels to any penalties assessed on or 
after August 1, 2016. Penalties assessed prior to August 1, 2016, will 
be subject to the amounts set in the Board's last adjustment pursuant 
to the FCPIA.\3\
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    \1\ Pub. L. 114-74, 129 Stat. 599 (2015) (codified at 28 U.S.C. 
2461 note).
    \2\ 28 U.S.C. 2461 note, section 4(b)(1).
    \3\ 77 FR 68,680 (Nov. 16, 2012).
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    Under the 2015 Act, the initial catch-up adjustment is the 
percentage for each civil monetary penalty by which the Consumer Price 
Index for the month of October 2015 exceeds the Consumer Price Index 
for the month of October of the calendar year during which the amount 
of the penalty was established or adjusted other than pursuant to the 
FCPIA. On February 24, 2016, as directed by the 2015 Act, the Office of 
Management and Budget (OMB) issued guidance to agencies on implementing 
the required catch-up adjustment which included the relevant inflation 
multipliers per calendar year.\4\ Using OMB's multipliers, the Board 
calculated the adjusted penalties for its civil monetary penalties, 
rounding the penalties to the nearest dollar. Under the 2015 Act, the 
amount of any increase may not exceed 150 percent of the amount of the 
penalty on the date of the enactment of the 2015 Act, which is November 
2, 2015.\5\ Accordingly, in a few cases where the calculated penalties 
exceeded the statutory maximum, the Board adjusted the respective 
penalty amount to 250 percent of the prior penalty. The Board also 
determined that none of the increases resulting from application of the 
2015 Act's formula would have a negative economic impact and that any 
social costs of increasing those penalty limits would not outweigh the 
benefits of the increase. For this reason, the Board did not seek an 
exception from the application of the formula as permitted by section 
4(c) of the 2015 Act.
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    \4\ OMB Memorandum M-16-06, Implementation of the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (Feb. 
24, 2016).
    \5\ 28 U.S.C. 2461 note, section 4(b)(2)(C).
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Administrative Procedure Act

    Pursuant to the Administrative Procedure Act (the ``APA''), notice 
of proposed rulemaking and opportunity for public comment are not 
required prior to the issuance of a final rule if an agency, for good 
cause, finds that ``notice and public procedure thereon are 
impracticable, unnecessary, or contrary to the public interest.'' \6\ 
As discussed above, the Board calculated the initial catch-up 
adjustment strictly in accordance with the requirements of the 2015 Act 
and OMB's implementing guidance. Moreover, the 2015 Act expressly 
requires the Board to publish the new catch-up penalty levels through 
an interim final rule, meaning that the rule can become effective prior 
to the receipt of public comments.\7\ For these reasons, the Board 
finds good cause to determine that publishing a notice of proposed 
rulemaking and providing opportunity for public comment prior to 
adopting a final rule are unnecessary.\8\ Nevertheless, because the 
Board is required to publish the catch-up penalty levels through an 
interim final rulemaking, the Board is inviting comments on this 
interim final rule. In view of the fact that the Board has calculated 
the catch-up adjustments strictly in accordance with OMB's implementing 
guidance, the Board specifically encourages comments identifying any 
issues with the Board's calculations under that guidance. The Board 
also invites comments regarding its determination that the bases for an 
exception under section 4(c) of the 2015 Act were not met.
---------------------------------------------------------------------------

    \6\ 5 U.S.C. 553(b)(3)(B).
    \7\ 28 U.S.C. 2461 note, section 4(b)(1).
    \8\ 5 U.S.C. 553(b).
---------------------------------------------------------------------------

Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires a 
regulatory flexibility analysis only for rules for which an agency is 
required to publish a general notice of proposed rulemaking. Because 
the 2015 Act requires agencies' catch-up adjustments to be made through 
an interim final rule, the Board is not publishing a notice of proposed 
rulemaking. Therefore, the Regulatory Flexibility Act does not apply.

Paperwork Reduction Act

    There is no collection of information required by this interim 
final rule that would be subject to the Paperwork Reduction Act of 
1995, 44 U.S.C. 3501 et seq.

List of Subjects in 12 CFR Part 263

    Administrative practice and procedure, Claims, Crime, Equal access 
to justice, Lawyers, Penalties.

Authority and Issuance

    For the reasons set forth in the preamble, the Board of Governors 
amends 12 CFR part 263 as follows:

PART 263--RULES OF PRACTICE FOR HEARINGS

0
1. The authority citation for part 263 is revised to read as follows:

    Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 248, 324, 334, 347a, 
504, 505, 1464, 1467, 1467a, 1817(j), 1818, 1820(k), 1829, 1831o, 
1831p-1, 1832(c), 1847(b), 1847(d), 1884, 1972(2)(F), 3105, 3108, 
3110, 3349, 3907, 3909(d), 4717; 15 U.S.C. 21, 78l(i), 78o-4, 78o-5, 
78u-2; 1639e(k); 28 U.S.C. 2461 note; 31 U.S.C. 5321; and 42 U.S.C. 
4012a.


0
2. Section 263.65 is revised to read as follows:


Sec.  263.65  Civil monetary penalty inflation adjustments.

    (a) Inflation adjustments. In accordance with the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, which 
further amended the Federal Civil Penalties Inflation Adjustment Act of 
1990, the Board has set forth in paragraph (b) of this section the 
adjusted maximum amounts for each civil monetary penalty provided by 
law

[[Page 47008]]

within the Board's jurisdiction. The authorizing statutes contain the 
complete provisions under which the Board may seek a civil monetary 
penalty. The adjusted civil monetary penalties apply only to penalties 
assessed on or after August 1, 2016.
    (b) Maximum civil monetary penalties. The maximum civil monetary 
penalties as set forth in the referenced statutory sections are set 
forth in the table in this paragraph (b).

------------------------------------------------------------------------
                                                          Adjusted civil
                         Statute                             monetary
                                                              penalty
------------------------------------------------------------------------
12 U.S.C. 324:
    Inadvertently late or misleading reports, inter alia          $3,787
    Other late or misleading reports, inter alia........          37,872
    Knowingly or reckless false or misleading reports,         1,893,610
     inter alia.........................................
12 U.S.C. 334...........................................             275
12 U.S.C. 374a..........................................             275
12 U.S.C. 504:
    First Tier..........................................           9,468
    Second Tier.........................................          47,340
    Third Tier..........................................       1,893,610
12 U.S.C. 505:
    First Tier..........................................           9,468
    Second Tier.........................................          47,340
    Third Tier..........................................       1,893,610
12 U.S.C. 1464(v)(4)....................................           3,787
12 U.S.C. 1464(v)(5)....................................          37,872
12 U.S.C. 1464(v)(6)....................................       1,893,610
12 U.S.C. 1467a(i)(2)...................................          47,340
12 U.S.C. 1467a(i)(3)...................................          47,340
12 U.S.C. 1467a(r):
    First Tier..........................................           3,787
    Second Tier.........................................          37,872
    Third Tier..........................................       1,893,610
12 U.S.C. 1817(j)(16):
    First Tier..........................................           9,468
    Second Tier.........................................          47,340
    Third Tier..........................................       1,893,610
12 U.S.C. 1818(i)(2):
    First Tier..........................................           9,468
    Second Tier.........................................          47,340
    Third Tier..........................................       1,893,610
12 U.S.C. 1820(k)(6)(A)(ii).............................         311,470
12 U.S.C. 1832(c).......................................           2,750
12 U.S.C. 1847(b).......................................          47,340
12 U.S.C. 1847(d):
    First Tier..........................................           3,787
    Second Tier.........................................          37,872
    Third Tier..........................................       1,893,610
12 U.S.C. 1884..........................................             275
12 U.S.C. 1972(2)(F):
    First Tier..........................................           9,468
    Second Tier.........................................          47,340
    Third Tier..........................................       1,893,610
12 U.S.C. 3909(d).......................................            2355
12 U.S.C. 3110(a).......................................          43,275
12 U.S.C. 3110(c):
    First Tier..........................................           3,462
    Second Tier.........................................          34,620
    Third Tier..........................................       1,730,990
15 U.S.C. 78u-2(b)(1):
    For a natural person................................           8,908
    For any other person................................          89,078
15 U.S.C. 78u-2(b)(2):
    For a natural person................................          89,078
    For any other person................................         445,390
15 U.S.C. 78u-2(b)(3):
    For a natural person................................         178,156
    For any other person................................         890,780
15 U.S.C. 1639e(k)(1)...................................          10,875
15 U.S.C. 1639e(k)(2)...................................          21,749
42 U.S.C. 4012a(f)(5)...................................            2056
------------------------------------------------------------------------



[[Page 47009]]

    By order of the Board of Governors of the Federal Reserve 
System, July 13, 2016.
Robert deV. Frierson,
Secretary of the Board.
    Billing Code: 6210-01-P
[FR Doc. 2016-16969 Filed 7-19-16; 8:45 am]
BILLING CODE 6210-01-P