Civil Penalty Inflation Adjustments, 3601-3603 [2017-00521]
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3601
Rules and Regulations
Federal Register
Vol. 82, No. 8
Thursday, January 12, 2017
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1083
Civil Penalty Inflation Adjustments
Bureau of Consumer Financial
Protection.
AGENCY:
ACTION:
Final rule.
The Bureau of Consumer
Financial Protection (Bureau) is
adjusting for inflation the maximum
amount of each civil penalty within the
Bureau’s jurisdiction. These
adjustments are required by the Federal
Civil Penalties Inflation Adjustment Act
of 1990 (the Inflation Adjustment Act),
as amended by the Debt Collection
Improvement Act of 1996 and further
amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015. The inflation adjustments
mandated by the Inflation Adjustment
Act serve to maintain the deterrent
effect of civil penalties and to promote
compliance with the law.
SUMMARY:
This final rule is effective
January 15, 2017.
DATES:
FOR FURTHER INFORMATION CONTACT:
Jaclyn Maier, Counsel, Office of
Regulations, Consumer Financial
Protection Bureau, 1700 G Street NW.,
Washington, DC 20552, at (202) 435–
7700.
SUPPLEMENTARY INFORMATION:
I. Background
The Inflation Adjustment Act,1 as
amended by the Debt Collection
Improvement Act of 1996 2 and further
amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015,3 directs Federal agencies to
adjust for inflation the civil penalty
amounts within their jurisdiction not
later than July 1, 2016, and then not
later than January 15 every year
thereafter.4 28 U.S.C. 2461 note. Each
agency was required to make the 2016
one-time catch-up adjustments through
an interim final rule published in the
Federal Register. On June 14, 2016, the
Bureau published its interim final rule
to make the initial catch-up adjustments
to civil penalties within the Bureau’s
jurisdiction.5 The June 2016 interim
final rule created a new part 1083 and
in § 1083.1 established the inflationadjusted maximum amounts for each
civil penalty within the Bureau’s
jurisdiction.6 The Inflation Adjustment
Act also requires subsequent
adjustments to be made annually, not
later than January 15, and
Law
Penalty description
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(A)
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(B)
1 Public
Law 101–410, 104 Stat. 890.
Law 104–134, section 31001(s)(1), 110
Stat. 1321, 1321–373.
3 Public Law 114–74, section 701, 129 Stat. 584,
599.
4 Section 1301(a) of the Federal Reports
Elimination Act of 1998, Public Law 105–362, 112
Stat. 3293, also amended the Inflation Adjustment
Act by striking section 6, which contained annual
reporting requirements, and redesignating section 7
as section 6, but did not alter the civil penalty
adjustment requirements.
5 81 FR 38569 (June 14, 2016). Although the
Bureau was not obligated to solicit comments for
the interim final rule, the Bureau invited public
comment and received none.
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2 Public
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17:27 Jan 11, 2017
Jkt 241001
12 CFR 1083.1.
Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
8 Inflation Adjustment Act sections 4 and 5,
codified at 28 U.S.C. 2461 note.
9 Inflation Adjustment Act sections 3 and 5,
codified at 28 U.S.C. 2461 note.
10 Memorandum from Shaun Donovan, Director,
Office of Management and Budget, to the Heads of
Executive Departments and Agencies (Dec. 16,
2016), https://www.whitehouse.gov/sites/default/
files/omb/memoranda/2017/m-17-11_0.pdf.
11 Inflation Adjustment Act section 5, codified at
28 U.S.C. 2461 note; Memorandum from Shaun
Donovan, Director, Office of Management and
Budget, to the Heads of Executive Departments and
7 Inflation
Frm 00001
Penalty amounts
established
under June 2016
interim final rule
OMB
‘‘Cost-of-living
adjustment’’
multiplier
New penalty
amount
$5,437
27,186
1.01636
1.01636
$5,526
27,631
Tier 1 penalty ........................
Tier 2 penalty ........................
6 See
PO 00000
notwithstanding section 553 of the
Administrative Procedure Act (APA).7
Specifically, Federal agencies are
directed to adjust annually each civil
penalty provided by law within the
jurisdiction of the agency by the ‘‘costof-living adjustment.’’ 8 For annual
adjustments after the initial catch up
adjustments, the ‘‘cost-of-living
adjustment’’ is defined as the percentage
(if any) by which the Consumer Price
Index for All Urban Consumers (CPI–U)
for the month of October preceding the
date of the adjustment, exceeds the CPI–
U for October of the prior year.9 The
Director of the Office of Management
and Budget (OMB) is required to issue
guidance (OMB Guidance) to agencies
on implementing the annual civil
penalty inflation adjustments by
December 15, 2016, and December 15
every subsequent year.10 Pursuant to the
Inflation Adjustment Act and OMB
Guidance, agencies must apply the
multiplier reflecting the ‘‘cost-of-living
adjustment’’ to the current penalty
amount and then round that amount to
the nearest dollar to determine the
annual adjustments.11
For the 2017 annual adjustment, the
multiplier reflecting the ‘‘cost-of-living
adjustment’’ is 1.01636.12 Pursuant to
the Inflation Adjustment Act and OMB
Guidance, the Bureau multiplied each of
its civil penalty amounts by the ‘‘costof-living adjustment’’ multiplier and
rounded to the nearest dollar.13
The new penalty amounts that apply
to civil penalties assessed after January
15, 2017 are as follows:
Fmt 4700
Sfmt 4700
Agencies (Dec. 16, 2016), https://
www.whitehouse.gov/sites/default/files/omb/
memoranda/2017/m-17-11_0.pdf.
12 Memorandum from Shaun Donovan, Director,
Office of Management and Budget, to the Heads of
Executive Departments and Agencies (Dec. 16,
2016), https://www.whitehouse.gov/sites/default/
files/omb/memoranda/2017/m-17-11_0.pdf. The
multiplier reflecting the ‘‘cost-of-living adjustment’’
that OMB provides is rounded to five decimal
places.
13 In rounding to the nearest dollar, the Bureau
has rounded down where the digit immediately
following the decimal point is less than 5 and has
rounded up where the digit immediately following
the decimal point is 5 or greater.
E:\FR\FM\12JAR1.SGM
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3602
Federal Register / Vol. 82, No. 8 / Thursday, January 12, 2017 / Rules and Regulations
Penalty amounts
established
under June 2016
interim final rule
OMB
‘‘Cost-of-living
adjustment’’
multiplier
New penalty
amount
Tier 3 penalty ........................
Per violation ..........................
1,087,450
1,894
1.01636
1.01636
1,105,241
1,925
Annual cap ...........................
1,893,610
1.01636
1,924,589
Per failure .............................
Annual cap ............................
Per failure, where intentional
89
178,156
178
1.01636
1.01636
1.01636
90
181,071
181
Per violation ..........................
First violation ........................
Subsequent violations ..........
27,455
10,875
21,749
1.01636
1.01636
1.01636
27,904
11,053
22,105
Law
Penalty description
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(C)
Interstate Land Sales Full Disclosure Act, 15 U.S.C.
1717a(a)(2).
Interstate Land Sales Full Disclosure Act, 15 U.S.C.
1717a(a)(2).
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1)
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1)
Real Estate Settlement Procedures Act, 12 U.S.C.
2609(d)(2)(A).
SAFE Act, 12 U.S.C. 5113(d)(2) ..............................................
Truth in Lending Act, 15 U.S.C. 1639e(k)(1) ...........................
Truth in Lending Act, 15 U.S.C. 1639e(k)(2) ...........................
II. Legal Authority
The Bureau issues this final rule
under the Inflation Adjustment Act,14 as
amended by the Debt Collection
Improvement Act of 1996 15 and further
amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015,16 which requires the
Bureau to adjust for inflation the civil
penalties within its jurisdiction
according to a statutorily prescribed
formula.
III. Procedural Requirements
A. Administrative Procedure Act
mstockstill on DSK3G9T082PROD with RULES
Under the APA, notice and
opportunity for public comment are not
required if the Bureau finds that notice
and public comment are impracticable,
unnecessary, or contrary to the public
interest.17 Pursuant to this final rule,
§ 1083.1 is amended to update the civil
penalty amounts. The 2017 adjustments
to the civil penalty amounts are
technical and non-discretionary, and
they merely apply the statutory method
for adjusting civil penalty amounts.
These adjustments are required by the
Inflation Adjustment Act. Moreover, the
Inflation Adjustment Act directs
agencies to adjust the civil penalties
annually notwithstanding section 553 of
the APA,18 and OMB Guidance
reaffirms that agencies need not
complete a notice-and-comment process
before making the annual adjustments
for inflation.19 For these reasons, the
Bureau has determined that publishing
a notice of proposed rulemaking and
providing opportunity for public
14 Public
Law 101–410, 104 Stat. 890.
Law 104–134, section 31001(s)(1), 110
Stat. 1321, 1321–373.
16 Public Law 114–74, section 701, 129 Stat. 584,
599.
17 5 U.S.C. 553(b)(B).
18 Inflation Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
15 Public
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17:27 Jan 11, 2017
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comment are unnecessary. Therefore,
the amendment is adopted in final form.
Section 553(d) of the APA generally
requires publication of a final rule not
less than 30 days before its effective
date, except (1) a substantive rule which
grants or recognizes an exemption or
relieves a restriction; (2) interpretive
rules and statements of policy; or (3) as
otherwise provided by the agency for
good cause found and published with
the rule.20 At a minimum, the Bureau
believes the annual adjustments to the
civil penalty amounts in § 1083.1 fall
under the third exception to section
553(d). The Bureau finds that there is
good cause to make the amendments
effective on January 15, 2017. The
amendments to § 1083.1 in this final
rule are technical and nondiscretionary, and they merely apply the
statutory method for adjusting civil
penalty amounts and follow the
statutory directive to make annual
adjustments by January 15 of each year.
Moreover, the Inflation Adjustment Act
directs agencies to adjust the civil
penalties annually notwithstanding
section 553 of the APA,21 and OMB
Guidance reaffirms that agencies need
not provide a delay in effective date for
the annual adjustments for inflation.22
B. Regulatory Flexibility Act
Because no notice of proposed
rulemaking is required, the Regulatory
Flexibility Act does not require an
initial or final regulatory flexibility
analysis.23
C. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995,24 the Bureau
19 Memorandum from Shaun Donovan, Director,
Office of Management and Budget, to the Heads of
Executive Departments and Agencies (Dec. 16,
2016), https://www.whitehouse.gov/sites/default/
files/omb/memoranda/2017/m-17-11_0.pdf.
20 5 U.S.C. 553(d).
21 Inflation Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
reviewed this final rule. No collections
of information pursuant to the
Paperwork Reduction Act are contained
in the final rule.
List of Subjects in 12 CFR Part 1083
Administrative practice and
procedure, Consumer protection,
Penalties.
Authority and Issuance
For the reasons set forth above, the
Bureau amends 12 CFR part 1083, as set
forth below:
■
PART 1083—CIVIL PENALTY
ADJUSTMENTS
1. The authority citation for part 1083
continues to read as follows:
■
Authority: 12 U.S.C. 2609(d); 12 U.S.C.
5113(d)(2); 12 U.S.C. 5565(c); 15 U.S.C.
1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461
note.
2. Section 1083.1 is revised to read as
follows:
■
§ 1083.1 Adjustments of civil penalty
amounts.
(a) The maximum amount of each
civil penalty within the jurisdiction of
the Consumer Financial Protection
Bureau to impose is adjusted in
accordance with the Federal Civil
Penalties Inflation Adjustment Act of
1990, as amended by the Debt
Collection Improvement Act of 1996
and further amended by the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, (28 U.S.C.
2461 note) as follows:
22 Memorandum from Shaun Donovan, Director,
Office of Management and Budget, to the Heads of
Executive Departments and Agencies (Dec. 16,
2016), https://www.whitehouse.gov/sites/default/
files/omb/memoranda/2017/m-17-11_0.pdf.
23 5 U.S.C. 603(a), 604(a).
24 44 U.S.C. 3506; 5 CFR 1320.
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Federal Register / Vol. 82, No. 8 / Thursday, January 12, 2017 / Rules and Regulations
U.S. Code citation
12
12
12
15
15
12
12
12
12
15
15
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
Civil penalty description
5565(c)(2)(A) .............................................................
5565(c)(2)(B) .............................................................
5565(c)(2)(C) .............................................................
1717a(a)(2) ...............................................................
1717a(a)(2) ...............................................................
2609(d)(1) .................................................................
2609(d)(1) .................................................................
2609(d)(2)(A) .............................................................
5113(d)(2) .................................................................
1639e(k)(1) ................................................................
1639e(k)(2) ................................................................
Tier 1 penalty ............................................................................
Tier 2 penalty ............................................................................
Tier 3 penalty ............................................................................
Per violation ..............................................................................
Annual cap ................................................................................
Per failure ..................................................................................
Annual cap ................................................................................
Per failure, where intentional ....................................................
Per violation ..............................................................................
First violation .............................................................................
Subsequent violations ...............................................................
Dated: January 4, 2017.
Richard Cordray,
Director, Bureau of Consumer Financial
Protection.
and ODP is specified in the amendatory
provisions.
The incorporation by reference of
certain publications listed in the
regulations is approved by the Director
of the Federal Register as of January 12,
2017.
ADDRESSES: Availability of matters
incorporated by reference in the
amendment is as follows:
[FR Doc. 2017–00521 Filed 1–9–17; 4:15 pm]
For Examination
(b) The adjustments in paragraph (a)
of this section shall apply to civil
penalties assessed after January 15,
2017, regardless of when the violation
for which the penalty is assessed
occurred.
BILLING CODE 4810–AM–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 97
[Docket No. 31112; Amdt. No. 3727]
Standard Instrument Approach
Procedures, and Takeoff Minimums
and Obstacle Departure Procedures;
Miscellaneous Amendments
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
This rule establishes, amends,
suspends, or removes Standard
Instrument Approach Procedures
(SIAPs) and associated Takeoff
Minimums and Obstacle Departure
Procedures (ODPs) for operations at
certain airports. These regulatory
actions are needed because of the
adoption of new or revised criteria, or
because of changes occurring in the
National Airspace System, such as the
commissioning of new navigational
facilities, adding new obstacles, or
changing air traffic requirements. These
changes are designed to provide safe
and efficient use of the navigable
airspace and to promote safe flight
operations under instrument flight rules
at the affected airports.
DATES: This rule is effective January 12,
2017. The compliance date for each
SIAP, associated Takeoff Minimums,
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SUMMARY:
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17:27 Jan 11, 2017
Jkt 241001
1. U.S. Department of Transportation,
Docket Ops-M30, 1200 New Jersey
Avenue SE., West Bldg., Ground Floor,
Washington, DC 20590–0001.
2. The FAA Air Traffic Organization
Service Area in which the affected
airport is located;
3. The office of Aeronautical
Navigation Products, 6500 South
MacArthur Blvd., Oklahoma City, OK
73169 or,
4. The National Archives and Records
Administration (NARA). For
information on the availability of this
material at NARA, call 202–741–6030,
or go to: https://www.archives.gov/
federal_register/code_of_federal_
regulations/ibr_locations.html.
Availability
All SIAPs and Takeoff Minimums and
ODPs are available online free of charge.
Visit the National Flight Data Center at
nfdc.faa.gov to register. Additionally,
individual SIAP and Takeoff Minimums
and ODP copies may be obtained from
the FAA Air Traffic Organization
Service Area in which the affected
airport is located.
FOR FURTHER INFORMATION CONTACT:
Thomas J. Nichols, Flight Procedure
Standards Branch (AFS–420), Flight
Technologies and Programs Divisions,
Flight Standards Service, Federal
Aviation Administration, Mike
Monroney Aeronautical Center, 6500
South MacArthur Blvd., Oklahoma City,
OK 73169 (Mail Address: P.O. Box
25082, Oklahoma City, OK 73125)
Telephone: (405) 954–4164.
PO 00000
Frm 00003
Adjusted
maximum civil
penalty amount
Fmt 4700
Sfmt 4700
$5,526
27,631
1,105,241
1,925
1,924,589
90
181,071
181
27,904
11,053
22,105
This rule
amends Title 14 of the Code of Federal
Regulations, Part 97 (14 CFR part 97), by
establishing, amending, suspending, or
removes SIAPS, Takeoff Minimums
and/or ODPS. The complete regulatory
description of each SIAP and its
associated Takeoff Minimums or ODP
for an identified airport is listed on FAA
form documents which are incorporated
by reference in this amendment under 5
U.S.C. 552(a), 1 CFR part 51, and 14
CFR part § 97.20. The applicable FAA
forms are FAA Forms 8260–3, 8260–4,
8260–5, 8260–15A, and 8260–15B when
required by an entry on 8260–15A.
The large number of SIAPs, Takeoff
Minimums and ODPs, their complex
nature, and the need for a special format
make publication in the Federal
Register expensive and impractical.
Further, airmen do not use the
regulatory text of the SIAPs, Takeoff
Minimums or ODPs, but instead refer to
their graphic depiction on charts
printed by publishers of aeronautical
materials. Thus, the advantages of
incorporation by reference are realized
and publication of the complete
description of each SIAP, Takeoff
Minimums and ODP listed on FAA form
documents is unnecessary. This
amendment provides the affected CFR
sections and specifies the types of
SIAPs, Takeoff Minimums and ODPs
with their applicable effective dates.
This amendment also identifies the
airport and its location, the procedure,
and the amendment number.
SUPPLEMENTARY INFORMATION:
Availability and Summary of Material
Incorporated by Reference
The material incorporated by
reference is publicly available as listed
in the ADDRESSES section.
The material incorporated by
reference describes SIAPS, Takeoff
Minimums and/or ODPS as identified in
the amendatory language for part 97 of
this final rule.
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]]>Agencies
[Federal Register Volume 82, Number 8 (Thursday, January 12, 2017)]
[Rules and Regulations]
[Pages 3601-3603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00521]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 82, No. 8 / Thursday, January 12, 2017 /
Rules and Regulations
[[Page 3601]]
BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1083
Civil Penalty Inflation Adjustments
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is
adjusting for inflation the maximum amount of each civil penalty within
the Bureau's jurisdiction. These adjustments are required by the
Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation
Adjustment Act), as amended by the Debt Collection Improvement Act of
1996 and further amended by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015. The inflation adjustments
mandated by the Inflation Adjustment Act serve to maintain the
deterrent effect of civil penalties and to promote compliance with the
law.
DATES: This final rule is effective January 15, 2017.
FOR FURTHER INFORMATION CONTACT: Jaclyn Maier, Counsel, Office of
Regulations, Consumer Financial Protection Bureau, 1700 G Street NW.,
Washington, DC 20552, at (202) 435-7700.
SUPPLEMENTARY INFORMATION:
I. Background
The Inflation Adjustment Act,\1\ as amended by the Debt Collection
Improvement Act of 1996 \2\ and further amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015,\3\ directs
Federal agencies to adjust for inflation the civil penalty amounts
within their jurisdiction not later than July 1, 2016, and then not
later than January 15 every year thereafter.\4\ 28 U.S.C. 2461 note.
Each agency was required to make the 2016 one-time catch-up adjustments
through an interim final rule published in the Federal Register. On
June 14, 2016, the Bureau published its interim final rule to make the
initial catch-up adjustments to civil penalties within the Bureau's
jurisdiction.\5\ The June 2016 interim final rule created a new part
1083 and in Sec. 1083.1 established the inflation-adjusted maximum
amounts for each civil penalty within the Bureau's jurisdiction.\6\ The
Inflation Adjustment Act also requires subsequent adjustments to be
made annually, not later than January 15, and notwithstanding section
553 of the Administrative Procedure Act (APA).\7\
---------------------------------------------------------------------------
\1\ Public Law 101-410, 104 Stat. 890.
\2\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321,
1321-373.
\3\ Public Law 114-74, section 701, 129 Stat. 584, 599.
\4\ Section 1301(a) of the Federal Reports Elimination Act of
1998, Public Law 105-362, 112 Stat. 3293, also amended the Inflation
Adjustment Act by striking section 6, which contained annual
reporting requirements, and redesignating section 7 as section 6,
but did not alter the civil penalty adjustment requirements.
\5\ 81 FR 38569 (June 14, 2016). Although the Bureau was not
obligated to solicit comments for the interim final rule, the Bureau
invited public comment and received none.
\6\ See 12 CFR 1083.1.
\7\ Inflation Adjustment Act section 4, codified at 28 U.S.C.
2461 note.
---------------------------------------------------------------------------
Specifically, Federal agencies are directed to adjust annually each
civil penalty provided by law within the jurisdiction of the agency by
the ``cost-of-living adjustment.'' \8\ For annual adjustments after the
initial catch up adjustments, the ``cost-of-living adjustment'' is
defined as the percentage (if any) by which the Consumer Price Index
for All Urban Consumers (CPI-U) for the month of October preceding the
date of the adjustment, exceeds the CPI-U for October of the prior
year.\9\ The Director of the Office of Management and Budget (OMB) is
required to issue guidance (OMB Guidance) to agencies on implementing
the annual civil penalty inflation adjustments by December 15, 2016,
and December 15 every subsequent year.\10\ Pursuant to the Inflation
Adjustment Act and OMB Guidance, agencies must apply the multiplier
reflecting the ``cost-of-living adjustment'' to the current penalty
amount and then round that amount to the nearest dollar to determine
the annual adjustments.\11\
---------------------------------------------------------------------------
\8\ Inflation Adjustment Act sections 4 and 5, codified at 28
U.S.C. 2461 note.
\9\ Inflation Adjustment Act sections 3 and 5, codified at 28
U.S.C. 2461 note.
\10\ Memorandum from Shaun Donovan, Director, Office of
Management and Budget, to the Heads of Executive Departments and
Agencies (Dec. 16, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
\11\ Inflation Adjustment Act section 5, codified at 28 U.S.C.
2461 note; Memorandum from Shaun Donovan, Director, Office of
Management and Budget, to the Heads of Executive Departments and
Agencies (Dec. 16, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
---------------------------------------------------------------------------
For the 2017 annual adjustment, the multiplier reflecting the
``cost-of-living adjustment'' is 1.01636.\12\ Pursuant to the Inflation
Adjustment Act and OMB Guidance, the Bureau multiplied each of its
civil penalty amounts by the ``cost-of-living adjustment'' multiplier
and rounded to the nearest dollar.\13\
---------------------------------------------------------------------------
\12\ Memorandum from Shaun Donovan, Director, Office of
Management and Budget, to the Heads of Executive Departments and
Agencies (Dec. 16, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf. The multiplier reflecting
the ``cost-of-living adjustment'' that OMB provides is rounded to
five decimal places.
\13\ In rounding to the nearest dollar, the Bureau has rounded
down where the digit immediately following the decimal point is less
than 5 and has rounded up where the digit immediately following the
decimal point is 5 or greater.
---------------------------------------------------------------------------
The new penalty amounts that apply to civil penalties assessed
after January 15, 2017 are as follows:
----------------------------------------------------------------------------------------------------------------
Penalty amounts
established OMB ``Cost-of-
Law Penalty description under June 2016 living New penalty
interim final adjustment'' amount
rule multiplier
----------------------------------------------------------------------------------------------------------------
Consumer Financial Protection Act, 12 Tier 1 penalty........... $5,437 1.01636 $5,526
U.S.C. 5565(c)(2)(A).
Consumer Financial Protection Act, 12 Tier 2 penalty........... 27,186 1.01636 27,631
U.S.C. 5565(c)(2)(B).
[[Page 3602]]
Consumer Financial Protection Act, 12 Tier 3 penalty........... 1,087,450 1.01636 1,105,241
U.S.C. 5565(c)(2)(C).
Interstate Land Sales Full Disclosure Per violation............ 1,894 1.01636 1,925
Act, 15 U.S.C. 1717a(a)(2).
Interstate Land Sales Full Disclosure Annual cap............... 1,893,610 1.01636 1,924,589
Act, 15 U.S.C. 1717a(a)(2).
Real Estate Settlement Procedures Act, Per failure.............. 89 1.01636 90
12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act, Annual cap............... 178,156 1.01636 181,071
12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act, Per failure, where 178 1.01636 181
12 U.S.C. 2609(d)(2)(A). intentional.
SAFE Act, 12 U.S.C. 5113(d)(2)........ Per violation............ 27,455 1.01636 27,904
Truth in Lending Act, 15 U.S.C. First violation.......... 10,875 1.01636 11,053
1639e(k)(1).
Truth in Lending Act, 15 U.S.C. Subsequent violations.... 21,749 1.01636 22,105
1639e(k)(2).
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II. Legal Authority
The Bureau issues this final rule under the Inflation Adjustment
Act,\14\ as amended by the Debt Collection Improvement Act of 1996 \15\
and further amended by the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015,\16\ which requires the Bureau to adjust
for inflation the civil penalties within its jurisdiction according to
a statutorily prescribed formula.
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\14\ Public Law 101-410, 104 Stat. 890.
\15\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321,
1321-373.
\16\ Public Law 114-74, section 701, 129 Stat. 584, 599.
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III. Procedural Requirements
A. Administrative Procedure Act
Under the APA, notice and opportunity for public comment are not
required if the Bureau finds that notice and public comment are
impracticable, unnecessary, or contrary to the public interest.\17\
Pursuant to this final rule, Sec. 1083.1 is amended to update the
civil penalty amounts. The 2017 adjustments to the civil penalty
amounts are technical and non-discretionary, and they merely apply the
statutory method for adjusting civil penalty amounts. These adjustments
are required by the Inflation Adjustment Act. Moreover, the Inflation
Adjustment Act directs agencies to adjust the civil penalties annually
notwithstanding section 553 of the APA,\18\ and OMB Guidance reaffirms
that agencies need not complete a notice-and-comment process before
making the annual adjustments for inflation.\19\ For these reasons, the
Bureau has determined that publishing a notice of proposed rulemaking
and providing opportunity for public comment are unnecessary.
Therefore, the amendment is adopted in final form.
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\17\ 5 U.S.C. 553(b)(B).
\18\ Inflation Adjustment Act section 4, codified at 28 U.S.C.
2461 note.
\19\ Memorandum from Shaun Donovan, Director, Office of
Management and Budget, to the Heads of Executive Departments and
Agencies (Dec. 16, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
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Section 553(d) of the APA generally requires publication of a final
rule not less than 30 days before its effective date, except (1) a
substantive rule which grants or recognizes an exemption or relieves a
restriction; (2) interpretive rules and statements of policy; or (3) as
otherwise provided by the agency for good cause found and published
with the rule.\20\ At a minimum, the Bureau believes the annual
adjustments to the civil penalty amounts in Sec. 1083.1 fall under the
third exception to section 553(d). The Bureau finds that there is good
cause to make the amendments effective on January 15, 2017. The
amendments to Sec. 1083.1 in this final rule are technical and non-
discretionary, and they merely apply the statutory method for adjusting
civil penalty amounts and follow the statutory directive to make annual
adjustments by January 15 of each year. Moreover, the Inflation
Adjustment Act directs agencies to adjust the civil penalties annually
notwithstanding section 553 of the APA,\21\ and OMB Guidance reaffirms
that agencies need not provide a delay in effective date for the annual
adjustments for inflation.\22\
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\20\ 5 U.S.C. 553(d).
\21\ Inflation Adjustment Act section 4, codified at 28 U.S.C.
2461 note.
\22\ Memorandum from Shaun Donovan, Director, Office of
Management and Budget, to the Heads of Executive Departments and
Agencies (Dec. 16, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
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B. Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
Regulatory Flexibility Act does not require an initial or final
regulatory flexibility analysis.\23\
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\23\ 5 U.S.C. 603(a), 604(a).
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C. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995,\24\ the
Bureau reviewed this final rule. No collections of information pursuant
to the Paperwork Reduction Act are contained in the final rule.
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\24\ 44 U.S.C. 3506; 5 CFR 1320.
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List of Subjects in 12 CFR Part 1083
Administrative practice and procedure, Consumer protection,
Penalties.
Authority and Issuance
0
For the reasons set forth above, the Bureau amends 12 CFR part 1083, as
set forth below:
PART 1083--CIVIL PENALTY ADJUSTMENTS
0
1. The authority citation for part 1083 continues to read as follows:
Authority: 12 U.S.C. 2609(d); 12 U.S.C. 5113(d)(2); 12 U.S.C.
5565(c); 15 U.S.C. 1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461
note.
0
2. Section 1083.1 is revised to read as follows:
Sec. 1083.1 Adjustments of civil penalty amounts.
(a) The maximum amount of each civil penalty within the
jurisdiction of the Consumer Financial Protection Bureau to impose is
adjusted in accordance with the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by the Debt Collection Improvement
Act of 1996 and further amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015, (28 U.S.C. 2461
note) as follows:
[[Page 3603]]
------------------------------------------------------------------------
Adjusted
U.S. Code citation Civil penalty maximum civil
description penalty amount
------------------------------------------------------------------------
12 U.S.C. 5565(c)(2)(A)........ Tier 1 penalty........ $5,526
12 U.S.C. 5565(c)(2)(B)........ Tier 2 penalty........ 27,631
12 U.S.C. 5565(c)(2)(C)........ Tier 3 penalty........ 1,105,241
15 U.S.C. 1717a(a)(2).......... Per violation......... 1,925
15 U.S.C. 1717a(a)(2).......... Annual cap............ 1,924,589
12 U.S.C. 2609(d)(1)........... Per failure........... 90
12 U.S.C. 2609(d)(1)........... Annual cap............ 181,071
12 U.S.C. 2609(d)(2)(A)........ Per failure, where 181
intentional.
12 U.S.C. 5113(d)(2)........... Per violation......... 27,904
15 U.S.C. 1639e(k)(1).......... First violation....... 11,053
15 U.S.C. 1639e(k)(2).......... Subsequent violations. 22,105
------------------------------------------------------------------------
(b) The adjustments in paragraph (a) of this section shall apply to
civil penalties assessed after January 15, 2017, regardless of when the
violation for which the penalty is assessed occurred.
Dated: January 4, 2017.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2017-00521 Filed 1-9-17; 4:15 pm]
BILLING CODE 4810-AM-P
