Civil Monetary Penalty Inflation Adjustment, 7637-7641 [2017-00473]

Download as PDF 7637 Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Rules and Regulations the IORR and IOER was associated with an increase in the target range for the federal funds rate, from a target range of 1⁄4 to 1⁄2 percent to a target range of 1⁄2 to 3⁄4 percent, announced by the FOMC on December 14, 2016 with an effective date of December 15, 2016. The FOMC’s press release on the same day as the announcement noted that: Information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that economic activity has been expanding at a moderate pace since mid-year. Job gains have been solid in recent months and the unemployment rate has declined. Household spending has been rising moderately but business fixed investment has remained soft. Inflation has increased since earlier this year but is still below the Committee’s 2 percent longer-run objective, partly reflecting earlier declines in energy prices and in prices of non-energy imports. Market-based measures of inflation compensation have moved up considerably but still are low; most survey-based measures of longer-term inflation expectations are little changed, on balance, in recent months. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will strengthen somewhat further. Inflation is expected to rise to 2 percent over the medium term as the transitory effects of past declines in energy and import prices dissipate and the labor market strengthens further. Near-term risks to the economic outlook appear roughly balanced. The Committee continues to closely monitor inflation indicators and global economic and financial developments. In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1⁄2 to 3⁄4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation. A Federal Reserve Implementation note released simultaneously with the announcement stated that: mstockstill on DSK3G9T082PROD with RULES The Board of Governors of the Federal Reserve System voted unanimously to raise the interest rate paid on required and excess reserve balances to 0.75 percent, effective December 15, 2016. As a result, the Board is amending § 204.10(b)(5) of Regulation D to change IORR to 0.75 percent and IOER to 0.75 percent. III. Administrative Procedure Act In general, the Administrative Procedure Act (12 U.S.C. 551 et seq.) (‘‘APA’’) imposes three principal requirements when an agency promulgates legislative rules (rules VerDate Sep<11>2014 18:54 Jan 19, 2017 Jkt 241001 made pursuant to congressionally delegated authority): (1) Publication with adequate notice of a proposed rule; (2) followed by a meaningful opportunity for the public to comment on the rule’s content; and (3) publication of the final rule not less than 30 days before its effective date. The APA provides that notice and comment procedures do not apply if the agency for good cause finds them to be ‘‘unnecessary, impracticable, or contrary to the public interest.’’ 12 U.S.C. 553(b)(3)(A). Section 553(d) of the APA also provides that publication not less than 30 days prior to a rule’s effective date is not required for (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) an agency finding good cause for shortened notice and publishing its reasoning with the rule. 12 U.S.C. 553(d). The Board has determined that good cause exists for finding that the notice, public comment, and delayed effective date provisions of the APA are unnecessary, impracticable, or contrary to the public interest with respect to the final amendments to Regulation D. The rate increases for IORR and IOER that are reflected in the final amendments to Regulation D were made with a view towards accommodating commerce and business and with regard to their bearing upon the general credit situation of the country. Notice and public comment would prevent the Board’s action from being effective as promptly as necessary in the public interest, and would not otherwise serve any useful purpose. Notice, public comment, and a delayed effective date would create uncertainty about the finality and effectiveness of the Board’s action and undermine the effectiveness of that action. Accordingly, the Board has determined that good cause exists to dispense with the notice, public comment, and delayed effective date procedures of the APA with respect to the final amendments to Regulation D. final regulatory flexibility analysis do not apply. V. Paperwork Reduction Act In accordance with the Paperwork Reduction Act (‘‘PRA’’) of 1995 (44 U.S.C. 3506; 5 CFR part 1320 Appendix A.1), the Board reviewed the final rule under the authority delegated to the Board by the Office of Management and Budget. The final rule contains no requirements subject to the PRA. List of Subjects in 12 CFR Part 204 Banks, banking, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, the Board amends 12 CFR part 204 as follows: PART 204—RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D) 1. The authority citation for part 204 continues to read as follows: ■ Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, and 3105. 2. Section 204.10 is amended by revising paragraph (b)(5) to read as follows: ■ § 204.10 * Payment of interest on balances. * * * * (b) * * * (5) The rates for IORR and IOER are: Rate (percent) IORR ..................................... IOER ..................................... * * * * 0.75 0.75 * By order of the Board of Governors of the Federal Reserve System, January 9, 2017. Robert deV. Frierson, Secretary of the Board. [FR Doc. 2017–00613 Filed 1–19–17; 8:45 am] BILLING CODE 6210–01–P NATIONAL CREDIT UNION ADMINISTRATION IV. Regulatory Flexibility Analysis 12 CFR Part 747 The Regulatory Flexibility Act (‘‘RFA’’) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.5 As noted previously, the Board has determined that it is unnecessary and contrary to the public interest to publish a general notice of proposed rulemaking for this final rule. Accordingly, the RFA’s requirements relating to an initial and RIN 3133–AE67 55 PO 00000 U.S.C. 603 and 604. Frm 00007 Fmt 4700 Sfmt 4700 Civil Monetary Penalty Inflation Adjustment National Credit Union Administration (NCUA). ACTION: Interim final rule. AGENCY: The NCUA Board (Board) is amending its regulations to adjust the maximum amount of each civil monetary penalty (CMP) within its SUMMARY: E:\FR\FM\23JAR1.SGM 23JAR1 7638 Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Rules and Regulations 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. This interim final rule is effective January 23, 2017. Comments must be received on or before February 22, 2017. DATES: You may submit comments by any of the following methods (Please send comments by one method only): • Federal eRulemaking Portal: http:// 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 http://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. ADDRESSES: Ian Marenna, Senior Trial Attorney, at 1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518–6540. mstockstill on DSK3G9T082PROD with RULES FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: I. Legal Background II. Calculation of Adjustments III. Regulatory Procedures VerDate Sep<11>2014 18:54 Jan 19, 2017 Jkt 241001 I. Legal Background A. Statutory Requirements and OMB Guidance 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. In November 2015, Congress further amended the CMP inflation requirements in the Bipartisan Budget Act of 2015,3 which contains the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 amendments).4 This legislation provided for an initial ‘‘catch-up’’ adjustment of CMPs in 2016, followed by annual adjustments. The catch-up adjustment re-set CMP maximum amounts by setting aside the inflation adjustments that agencies made in prior years and instead calculated inflation with reference to the year when each CMP was enacted or last modified by Congress. Agencies were required to publish their catch-up adjustments in an interim final rule by July 1, 2016 and make them effective by August 1, 2016.5 NCUA complied with these requirements in a June 2016 interim final rule, followed by an October 2016 final rule to confirm the adjustments as final.6 The 2015 amendments also specified how agencies must conduct annual inflation adjustments after the 2016 catch-up adjustment. Beginning in 2017, agencies must make the required adjustments and publish them in the Federal Register by January 15 of each succeeding year.7 The statute provides that the adjustments shall be made notwithstanding the section of the Administrative Procedure Act (APA) that requires prior notice and public comment for agency rulemaking.8 The 2015 amendments also specify that each CMP maximum must be increased by the percentage by which the consumer price index for urban consumers (CPI– 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), codified at 28 U.S.C. 2461 note. 3 Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015). 4 129 Stat. 599. 5 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 2, 2015). 6 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov. 7, 2016). 7 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 2, 2015). 8 Id. PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 U) 9 for October of the year immediately preceding the year the adjustment is made exceeds the CPI–U for October of the prior year.10 For example, for the adjustment made in 2017, agencies must compare the October 2016 CPI–U with the October 2015 CPI–U. The 2015 amendments also provide that agencies may forgo the required annual adjustments in certain circumstances. Specifically, in a subsection titled ‘‘Other Adjustments Made,’’ the statute provides that an agency is not required to make an annual adjustment to a CMP if it has been increased by a greater amount than the contemplated annual adjustment in the preceding 12 months.11 When these criteria are met, the agency has discretion not to make the adjustments otherwise required by the statute. In addition, the 2015 amendments directed the Office of Management and Budget (OMB) to issue guidance to agencies on implementing the inflation adjustments.12 OMB is required to issue its guidance each December and did so on December 16, 2016.13 This OMB guidance for the upcoming 2017 adjustments includes an inflationary multiplier (1.01636) to apply to each current CMP maximum amount to determine the adjusted maximum. The guidance also addresses the exception described above for adjustments made in the preceding 12 months, indicating that the exception applies to adjustments made due to a law other than the 2015 amendments.14 Finally, the guidance addresses rulemaking procedures and agency reporting and oversight requirements. The next section sets forth the Board’s calculation of the adjustments for 2017, in accordance with the foregoing requirements. B. Application to the 2017 Adjustments This section applies the statutory requirements and OMB’s guidance to NCUA CMPs. As explained above, the 2015 amendments require NCUA to adjust the 9 This index is published by the Department of Labor, Bureau of Labor Statistics, and is available at its Web site: http://www.bls.gov/cpi/. 10 Public Law 114–74, Sec. 701(b)(1)(2)(B), 129 Stat. 584, 600 (Nov. 2, 2015). 11 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, 600 (Nov. 2, 2015). 12 Public Law 114–74, Sec. 701(b)(4), 129 Stat. 584, 601 (Nov. 2, 2015). 13 Id.; OMB, Implementation of the 2017 Annual Adjustment Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, M–17–11 (Dec. 16, 2016), available at https:// www.whitehouse.gov/sites/default/files/omb/ memoranda/2017/m-17-11_0.pdf (noting that the applicable 2017 CMP-adjustment multiplier is 1.01636). 14 Id. at 3. E:\FR\FM\23JAR1.SGM 23JAR1 7639 Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Rules and Regulations maximum amounts of its CMPs by the percentage by which the October 2016 CPI–U (241.729) exceeds the October 2015 CPI–U (237.838). This percentage is 1.636. This percentage increase can be expressed as an inflation multiplier (the quotient of the October 2016 figure divided by the October 2015 figure). Accordingly, each CMP maximum amount should be multiplied by 1.01636 to determine the adjusted maximum amount. OMB’s guidance identifies the same multiplier. The Board has considered the exception in the 2015 amendments for adjustments made in the preceding 12 months, discussed above, but has decided not to invoke it. The OMB guidance indicates that this exception applies when the adjustments in the preceding 12 months were made under authority other than the 2015 amendments. The Board finds this reading of the statute reasonable. Even if this exception did apply as a threshold matter, there would be good reasons not to apply it. First, the adjustments calculated below are relatively minor, as the maximums will increase by about 1.6 percent. Second, NCUA is not required to and historically has not assessed CMPs at the maximum levels. Third, if NCUA chose to forgo the increases this year, it would not be able to capture this inflation in later years, which would cause the maximums to fall out of line with annual inflation. Finally, the Board anticipates that the federal banking agencies will not apply this exception to CMPs for which NCUA and the banking agencies have concurrent jurisdiction. Although NCUA is not required to make its adjustments in accord with any other agency, maintaining consistency in this area is desirable. In sum, even if the exception might apply, the Board would not invoke it this year. The table below presents the adjustment calculations. The current maximums are found at 12 CFR 747.1001, as adjusted in June 2016. This amount is multiplied by the inflation multiplier to calculate the new maximum in the far right column. Only these adjusted maximum amounts, and not the calculations, will be codified at 12 CFR 747.1001 under this interim final rule. The adjusted amounts will be effective January 15, 2017, and can be applied to violations that occurred on or after November 2, 2015, the date the 2015 amendments were enacted. TABLE—CALCULATION OF MAXIMUM CMP ADJUSTMENTS Current maximum ($) Citation Description/tier 15 12 U.S.C. 1782(a)(3) .......... Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report. Non-inadvertent failure to submit a report or the non-inadvertent submission of a false or misleading report. Failure to submit a report or the submission of a false or misleading report done knowingly or with reckless disregard. Tier 1 CMP for inadvertent failure to submit certified statement of insured shares and charges due to NCUSIF, or inadvertent submission of false or misleading statement. Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of false or misleading statement. Tier 3 CMP for failure to submit a certified statement or the submission of a false or misleading statement done knowingly or with reckless disregard. Non-compliance with insurance logo requirements ........ Non-compliance with NCUA security requirements ........ Tier 1 CMP for violations of law, regulation, and other orders or agreements. Tier 2 CMP for violations of law, regulation, and other orders or agreements and for recklessly engaging in unsafe or unsound practices or breaches of fiduciary duty. Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (natural person). Tier 3 (same) (CU) .......................................................... 12 U.S.C. 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) mstockstill on DSK3G9T082PROD with RULES 15 U.S.C. 1639e(k) ............. 15 U.S.C. 1639e(k) ............. 42 U.S.C. 4012a(f)(5) ......... Non-compliance with senior examiner post-employment restrictions. Non-compliance with appraisal independence standards (first violation). Subsequent violations of the same ................................. Non-compliance with flood insurance requirements ....... Multiplier 3,787 ....................... 1.01636 3,849. 37,872 ..................... 1.01636 38,492. Lesser of 1,893,610 or 1% of total CU assets. 3,462 ....................... 1.01636 1.01636 Lesser of 1,924,589 or 1% of total CU assets. 3,519. 34,620 ..................... 1.01636 35,186. Lesser of 1,730,990 or 1% of total CU assets. 118 .......................... 275 .......................... 9,468 ....................... 1.01636 1.01636 1.01636 1.01636 Lesser of 1,759,309 or 1% of total CU assets. 120. 279. 9,623. 47,340 ..................... 1.01636 48,114. 1,893,610 ................ 1.01636 1,924,589. Lesser of 1,893,610 or 1% of total CU assets. 311,470 ................... 1.01636 1.01636 Lesser of 1,924,589 or 1% of total CU assets. 316,566. 10,875 ..................... 1.01636 11,053. 21,749 ..................... 2,056 ....................... 1.01636 1.01636 22,105. 2,090. 15 The table uses condensed descriptions of CMP tiers. Refer to the U.S. Code citations for complete descriptions. VerDate Sep<11>2014 18:54 Jan 19, 2017 Jkt 241001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 Adjusted maximum ($) (Current maximum × multiplier) E:\FR\FM\23JAR1.SGM 23JAR1 7640 Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Rules and Regulations III. Regulatory Procedures A. Interim Final Rule Under the APA In the 2015 amendments to the FCPIA Act, Congress provided that agencies shall make the required inflation adjustments in 2017 and subsequent years notwithstanding 5 U.S.C. 553,16 which requires agencies to follow notice-and-comment procedures in rulemaking and to make rules effective no sooner than 30 days after publication in the Federal Register. The 2015 amendments provide a clear exception to these requirements.17 In addition, the Board finds that notice-and-comment procedures would be impracticable and unnecessary under the APA because of the largely ministerial and technical nature of the rule, which affords agencies limited discretion in promulgating the rule, and the statutory deadline for making the adjustments.18 In these circumstances, the Board finds good cause to issue an interim final rule without issuing a notice of proposed rulemaking. The Board also finds good cause to make the interim final rule effective upon publication because of the statutory deadline. Accordingly, this interim final rule is issued without prior notice and will become effective immediately upon publication. However, the Board invites comments on all aspects of the interim final rule. The Board will review and consider all comments before issuing a final rule. mstockstill on DSK3G9T082PROD with RULES 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.19 For purposes of this analysis, the Board considers small credit unions to be those having under $100 million in assets.20 This interim final rule will 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.21 Because this interim final rule will 16 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 2, 2015). 17 See 5 U.S.C. 559; Asiana Airlines v. Fed. Aviation Admin., 134 F.3d 393, 396–99 (D.C. Cir. 1998). VerDate Sep<11>2014 18:54 Jan 19, 2017 Jkt 241001 affect few, if any, small credit unions, the Board certifies that the final rule will not have a significant economic impact on small entities. C. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in which an agency creates a new paperwork burden on regulated entities or modifies an existing burden.22 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. 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. 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 18 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). 19 5 U.S.C. 603(a). 20 Interpretive Ruling and Policy Statement 15–1, 80 FR 57512 (Sept. 24, 2015). 21 12 U.S.C. 1786(k)(2)(G)(i). PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 Section 654 of the Treasury and General Government Appropriations Act, 1999.23 F. Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act of 1996 24 (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 APA.25 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. List of Subjects in 12 CFR Part 747 Civil monetary penalties, Credit unions. By the National Credit Union Administration Board on January 6, 2017. 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 continues 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: 22 44 U.S.C. 3507(d); 5 CFR part 1320. Law 105–277, 112 Stat. 2681 (Oct. 21, 23 Public 1998). 24 Public Law 104–121, 110 Stat. 857 (Mar. 29, 1996). 25 5 U.S.C. 551. E:\FR\FM\23JAR1.SGM 23JAR1 Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Rules and Regulations U.S. Code citation CMP description (1) 12 U.S.C. 1782(a)(3) ............... Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report. Non-inadvertent failure to submit a report or the noninadvertent 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). (2) 12 U.S.C. 1782(a)(3) ............... (3) 12 U.S.C. 1782(a)(3) ............... (4) 12 U.S.C. 1782(d)(2)(A) .......... (5) 12 U.S.C. 1782(d)(2)(B) .......... (6) 12 U.S.C. 1782(d)(2)(C) .......... (7) 12 U.S.C. 1785(a)(3) ............... (8) 12 U.S.C. 1785(e) (3) .............. (9) 12 U.S.C. 1786(k)(2)(A) .......... (10) 12 U.S.C. 1786(k)(2)(A) ........ (11) 12 U.S.C. 1786(k)(2)(A) ........ (12) 12 U.S.C. 1786(w)(5)(ii) ........ (13) 15 U.S.C. 1639e(k) ............... (14) 42 U.S.C. 4012a(f)(5) ............ [FR Doc. 2017–00473 Filed 1–19–17; 8:45 am] BILLING CODE 7535–01–P DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Parts 730, 734, 736, 742, 744, and 745 RIN 0694–AH22 mstockstill on DSK3G9T082PROD with RULES Updated Statements of Legal Authority for the Export Administration Regulations Bureau of Industry and Security, Commerce. ACTION: Final rule. AGENCY: This rule updates the Code of Federal Regulations (CFR) legal authority citations in the Export SUMMARY: 18:54 Jan 19, 2017 Jkt 241001 $3,849. $38,492. $1,924,589 or 1 percent of the total assets of the credit union, whichever is less. $3,519. $35,186. $1,759,309 or 1 percent of the total assets of the credit union, whichever is less. $120. $279. $9,623. $48,114. For a person other than an insured credit union: $1,924,589; For an insured credit union: $1,924,589 or 1 percent of the total assets of the credit union, whichever is less. $316,566. First violation: $22,105. $2,090. Administration Regulations (EAR) to cite the most recent Presidential notice continuing an emergency declared pursuant to the International Emergency Economic Powers Act. This is a nonsubstantive rule that only updates authority paragraphs of the EAR. It does not alter any right, obligation or prohibition that applies to any person under the EAR. DATES: The rule is effective January 23, 2017. FOR FURTHER INFORMATION CONTACT: Nancy Kook, Regulatory Policy Division, Bureau of Industry and Security, Telephone: (202) 482–2440. SUPPLEMENTARY INFORMATION: Background [Docket No. 170103002–7002–01] VerDate Sep<11>2014 New maximum amount Non-compliance with senior examiner post-employment restrictions. Non-compliance with appraisal independence requirements. Non-compliance with 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 pre-dated the increase and occurred after November 2, 2015. The authority for parts 730, 734, 736, 742, 744, and 745 of the EAR rests, in part, on Executive Order 12938 of November 14, 1994—Proliferation of Weapons of Mass Destruction, 59 FR 59099, 3 CFR, 1994 Comp., p. 950 and on annual notices continuing the emergency declared in that executive order. This rule revises the authority citations for the affected parts of the EAR to cite the most recent such notice, which the President signed on November 8, 2016. PO 00000 Frm 00011 Fmt 4700 7641 Sfmt 4700 $11,053. Subsequent violations: This rule is purely non-substantive and makes no changes other than to revise CFR authority citations for the purpose of making the authority citations current. It does not change the text of any section of the EAR, nor does it alter any right, obligation or prohibition that applies to any person under the EAR. Rulemaking Requirements 1. Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). This rule does not impose any regulatory burden on the public and is consistent with the goals of Executive Order 13563. This rule has been determined to be not significant for purposes of Executive Order 12866. 2. Notwithstanding any other provision of law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork E:\FR\FM\23JAR1.SGM 23JAR1

Agencies

[Federal Register Volume 82, Number 13 (Monday, January 23, 2017)]
[Rules and Regulations]
[Pages 7637-7641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00473]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 747

RIN 3133-AE67


Civil Monetary Penalty Inflation Adjustment

AGENCY: National Credit Union Administration (NCUA).

ACTION: Interim final rule.

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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

[[Page 7638]]

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 January 23, 2017. Comments 
must be received on or before February 22, 2017.

ADDRESSES: You may submit comments by any of the following methods 
(Please send comments by one method only):
     Federal eRulemaking Portal: http://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 http://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 OMB Guidance

    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.
---------------------------------------------------------------------------

    \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), codified 
at 28 U.S.C. 2461 note.
---------------------------------------------------------------------------

    In November 2015, Congress further amended the CMP inflation 
requirements in the Bipartisan Budget Act of 2015,\3\ which contains 
the Federal Civil Penalties Inflation Adjustment Act Improvements Act 
of 2015 (the 2015 amendments).\4\ This legislation provided for an 
initial ``catch-up'' adjustment of CMPs in 2016, followed by annual 
adjustments. The catch-up adjustment re-set CMP maximum amounts by 
setting aside the inflation adjustments that agencies made in prior 
years and instead calculated inflation with reference to the year when 
each CMP was enacted or last modified by Congress. Agencies were 
required to publish their catch-up adjustments in an interim final rule 
by July 1, 2016 and make them effective by August 1, 2016.\5\ NCUA 
complied with these requirements in a June 2016 interim final rule, 
followed by an October 2016 final rule to confirm the adjustments as 
final.\6\
---------------------------------------------------------------------------

    \3\ Public Law 114-74, 129 Stat. 584 (Nov. 2, 2015).
    \4\ 129 Stat. 599.
    \5\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 
2, 2015).
    \6\ 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov. 7, 2016).
---------------------------------------------------------------------------

    The 2015 amendments also specified how agencies must conduct annual 
inflation adjustments after the 2016 catch-up adjustment. Beginning in 
2017, agencies must make the required adjustments and publish them in 
the Federal Register by January 15 of each succeeding year.\7\ The 
statute provides that the adjustments shall be made notwithstanding the 
section of the Administrative Procedure Act (APA) that requires prior 
notice and public comment for agency rulemaking.\8\ The 2015 amendments 
also specify that each CMP maximum must be increased by the percentage 
by which the consumer price index for urban consumers (CPI-U) \9\ for 
October of the year immediately preceding the year the adjustment is 
made exceeds the CPI-U for October of the prior year.\10\ For example, 
for the adjustment made in 2017, agencies must compare the October 2016 
CPI-U with the October 2015 CPI-U.
---------------------------------------------------------------------------

    \7\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 
2, 2015).
    \8\ Id.
    \9\ This index is published by the Department of Labor, Bureau 
of Labor Statistics, and is available at its Web site: http://www.bls.gov/cpi/.
    \10\ Public Law 114-74, Sec. 701(b)(1)(2)(B), 129 Stat. 584, 600 
(Nov. 2, 2015).
---------------------------------------------------------------------------

    The 2015 amendments also provide that agencies may forgo the 
required annual adjustments in certain circumstances. Specifically, in 
a subsection titled ``Other Adjustments Made,'' the statute provides 
that an agency is not required to make an annual adjustment to a CMP if 
it has been increased by a greater amount than the contemplated annual 
adjustment in the preceding 12 months.\11\ When these criteria are met, 
the agency has discretion not to make the adjustments otherwise 
required by the statute.
---------------------------------------------------------------------------

    \11\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 600 (Nov. 
2, 2015).
---------------------------------------------------------------------------

    In addition, the 2015 amendments directed the Office of Management 
and Budget (OMB) to issue guidance to agencies on implementing the 
inflation adjustments.\12\ OMB is required to issue its guidance each 
December and did so on December 16, 2016.\13\ This OMB guidance for the 
upcoming 2017 adjustments includes an inflationary multiplier (1.01636) 
to apply to each current CMP maximum amount to determine the adjusted 
maximum. The guidance also addresses the exception described above for 
adjustments made in the preceding 12 months, indicating that the 
exception applies to adjustments made due to a law other than the 2015 
amendments.\14\ Finally, the guidance addresses rulemaking procedures 
and agency reporting and oversight requirements.
---------------------------------------------------------------------------

    \12\ Public Law 114-74, Sec. 701(b)(4), 129 Stat. 584, 601 (Nov. 
2, 2015).
    \13\ Id.; OMB, Implementation of the 2017 Annual Adjustment 
Pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015, M-17-11 (Dec. 16, 2016), available at 
https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf (noting that the applicable 2017 CMP-adjustment 
multiplier is 1.01636).
    \14\ Id. at 3.
---------------------------------------------------------------------------

    The next section sets forth the Board's calculation of the 
adjustments for 2017, in accordance with the foregoing requirements.

B. Application to the 2017 Adjustments

    This section applies the statutory requirements and OMB's guidance 
to NCUA CMPs.
    As explained above, the 2015 amendments require NCUA to adjust the

[[Page 7639]]

maximum amounts of its CMPs by the percentage by which the October 2016 
CPI-U (241.729) exceeds the October 2015 CPI-U (237.838). This 
percentage is 1.636. This percentage increase can be expressed as an 
inflation multiplier (the quotient of the October 2016 figure divided 
by the October 2015 figure). Accordingly, each CMP maximum amount 
should be multiplied by 1.01636 to determine the adjusted maximum 
amount. OMB's guidance identifies the same multiplier.
    The Board has considered the exception in the 2015 amendments for 
adjustments made in the preceding 12 months, discussed above, but has 
decided not to invoke it. The OMB guidance indicates that this 
exception applies when the adjustments in the preceding 12 months were 
made under authority other than the 2015 amendments. The Board finds 
this reading of the statute reasonable. Even if this exception did 
apply as a threshold matter, there would be good reasons not to apply 
it. First, the adjustments calculated below are relatively minor, as 
the maximums will increase by about 1.6 percent. Second, NCUA is not 
required to and historically has not assessed CMPs at the maximum 
levels. Third, if NCUA chose to forgo the increases this year, it would 
not be able to capture this inflation in later years, which would cause 
the maximums to fall out of line with annual inflation. Finally, the 
Board anticipates that the federal banking agencies will not apply this 
exception to CMPs for which NCUA and the banking agencies have 
concurrent jurisdiction. Although NCUA is not required to make its 
adjustments in accord with any other agency, maintaining consistency in 
this area is desirable. In sum, even if the exception might apply, the 
Board would not invoke it this year.
    The table below presents the adjustment calculations. The current 
maximums are found at 12 CFR 747.1001, as adjusted in June 2016. This 
amount is multiplied by the inflation multiplier to calculate the new 
maximum in the far right column. Only these adjusted maximum amounts, 
and not the calculations, will be codified at 12 CFR 747.1001 under 
this interim final rule. The adjusted amounts will be effective January 
15, 2017, and can be applied to violations that occurred on or after 
November 2, 2015, the date the 2015 amendments were enacted.
---------------------------------------------------------------------------

    \15\ The table uses condensed descriptions of CMP tiers. Refer 
to the U.S. Code citations for complete descriptions.

                                  Table--Calculation of Maximum CMP Adjustments
----------------------------------------------------------------------------------------------------------------
                                                                                         Adjusted  maximum  ($)
           Citation            Description/tier    Current  maximum  ($)    Multiplier     (Current  maximum x
                                     \15\                                                      multiplier)
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 1782(a)(3).........  Inadvertent       3,787....................     1.01636  3,849.
                                failure to
                                submit a report
                                or the
                                inadvertent
                                submission of a
                                false or
                                misleading
                                report.
12 U.S.C. 1782(a)(3).........  Non-inadvertent   37,872...................     1.01636  38,492.
                                failure to
                                submit a report
                                or the non-
                                inadvertent
                                submission of a
                                false or
                                misleading
                                report.
12 U.S.C. 1782(a)(3).........  Failure to        Lesser of 1,893,610 or 1%     1.01636  Lesser of 1,924,589 or
                                submit a report   of total CU assets.                    1% of total CU assets.
                                or the
                                submission of a
                                false or
                                misleading
                                report done
                                knowingly or
                                with reckless
                                disregard.
12 U.S.C. 1782(d)(2)(A)......  Tier 1 CMP for    3,462....................     1.01636  3,519.
                                inadvertent
                                failure to
                                submit
                                certified
                                statement of
                                insured shares
                                and charges due
                                to NCUSIF, or
                                inadvertent
                                submission of
                                false or
                                misleading
                                statement.
12 U.S.C. 1782(d)(2)(B)......  Tier 2 CMP for    34,620...................     1.01636  35,186.
                                non-inadvertent
                                failure to
                                submit
                                certified
                                statement or
                                submission of
                                false or
                                misleading
                                statement.
12 U.S.C. 1782(d)(2)(C)......  Tier 3 CMP for    Lesser of 1,730,990 or 1%     1.01636  Lesser of 1,759,309 or
                                failure to        of total CU assets.                    1% of total CU assets.
                                submit a
                                certified
                                statement or
                                the submission
                                of a false or
                                misleading
                                statement done
                                knowingly or
                                with reckless
                                disregard.
12 U.S.C. 1785(a)(3).........  Non-compliance    118......................     1.01636  120.
                                with insurance
                                logo
                                requirements.
12 U.S.C. 1785(e)(3).........  Non-compliance    275......................     1.01636  279.
                                with NCUA
                                security
                                requirements.
12 U.S.C. 1786(k)(2)(A)......  Tier 1 CMP for    9,468....................     1.01636  9,623.
                                violations of
                                law,
                                regulation, and
                                other orders or
                                agreements.
12 U.S.C. 1786(k)(2)(B)......  Tier 2 CMP for    47,340...................     1.01636  48,114.
                                violations of
                                law,
                                regulation, and
                                other orders or
                                agreements and
                                for recklessly
                                engaging in
                                unsafe or
                                unsound
                                practices or
                                breaches of
                                fiduciary duty.
12 U.S.C. 1786(k)(2)(C)......  Tier 3 CMP for    1,893,610................     1.01636  1,924,589.
                                knowingly
                                committing the
                                violations
                                under Tier 1 or
                                2 (natural
                                person).
12 U.S.C. 1786(k)(2)(C)......  Tier 3 (same)     Lesser of 1,893,610 or 1%     1.01636  Lesser of 1,924,589 or
                                (CU).             of total CU assets.                    1% of total CU assets.
12 U.S.C. 1786(w)(5)(A)(ii)..  Non-compliance    311,470..................     1.01636  316,566.
                                with senior
                                examiner post-
                                employment
                                restrictions.
15 U.S.C. 1639e(k)...........  Non-compliance    10,875...................     1.01636  11,053.
                                with appraisal
                                independence
                                standards
                                (first
                                violation).
15 U.S.C. 1639e(k)...........  Subsequent        21,749...................     1.01636  22,105.
                                violations of
                                the same.
42 U.S.C. 4012a(f)(5)........  Non-compliance    2,056....................     1.01636  2,090.
                                with flood
                                insurance
                                requirements.
----------------------------------------------------------------------------------------------------------------


[[Page 7640]]

III. Regulatory Procedures

A. Interim Final Rule Under the APA

    In the 2015 amendments to the FCPIA Act, Congress provided that 
agencies shall make the required inflation adjustments in 2017 and 
subsequent years notwithstanding 5 U.S.C. 553,\16\ which requires 
agencies to follow notice-and-comment procedures in rulemaking and to 
make rules effective no sooner than 30 days after publication in the 
Federal Register. The 2015 amendments provide a clear exception to 
these requirements.\17\ In addition, the Board finds that notice-and-
comment procedures would be impracticable and unnecessary under the APA 
because of the largely ministerial and technical nature of the rule, 
which affords agencies limited discretion in promulgating the rule, and 
the statutory deadline for making the adjustments.\18\ In these 
circumstances, the Board finds good cause to issue an interim final 
rule without issuing a notice of proposed rulemaking. The Board also 
finds good cause to make the interim final rule effective upon 
publication because of the statutory deadline. Accordingly, this 
interim final rule is issued without prior notice and will become 
effective immediately upon publication. However, the Board invites 
comments on all aspects of the interim final rule. The Board will 
review and consider all comments before issuing a final rule.
---------------------------------------------------------------------------

    \16\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 
2, 2015).
    \17\ See 5 U.S.C. 559; Asiana Airlines v. Fed. Aviation Admin., 
134 F.3d 393, 396-99 (D.C. Cir. 1998).
    \18\ 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).
---------------------------------------------------------------------------

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.\19\ For purposes of 
this analysis, the Board considers small credit unions to be those 
having under $100 million in assets.\20\ This interim final rule will 
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.\21\ Because this interim final rule will 
affect few, if any, small credit unions, the Board certifies that the 
final rule will not have a significant economic impact on small 
entities.
---------------------------------------------------------------------------

    \19\ 5 U.S.C. 603(a).
    \20\ Interpretive Ruling and Policy Statement 15-1, 80 FR 57512 
(Sept. 24, 2015).
    \21\ 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.\22\ 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.
---------------------------------------------------------------------------

    \22\ 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.\23\
---------------------------------------------------------------------------

    \23\ 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 \24\ 
(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 APA.\25\ 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.
---------------------------------------------------------------------------

    \24\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996).
    \25\ 5 U.S.C. 551.
---------------------------------------------------------------------------

List of Subjects in 12 CFR Part 747

    Civil monetary penalties, Credit unions.

    By the National Credit Union Administration Board on January 6, 
2017.
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 continues 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:

[[Page 7641]]



----------------------------------------------------------------------------------------------------------------
                U.S. Code citation                         CMP description               New maximum amount
----------------------------------------------------------------------------------------------------------------
(1) 12 U.S.C. 1782(a)(3)..........................  Inadvertent failure to submit  $3,849.
                                                     a report or the inadvertent
                                                     submission of a false or
                                                     misleading report.
(2) 12 U.S.C. 1782(a)(3)..........................  Non-inadvertent failure to     $38,492.
                                                     submit a report or the non-
                                                     inadvertent submission of a
                                                     false or misleading report.
(3) 12 U.S.C. 1782(a)(3)..........................  Failure to submit a report or  $1,924,589 or 1 percent of
                                                     the submission of a false or   the total assets of the
                                                     misleading report done         credit union, whichever is
                                                     knowingly or with reckless     less.
                                                     disregard.
(4) 12 U.S.C. 1782(d)(2)(A).......................  Tier 1 CMP for inadvertent     $3,519.
                                                     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-            $35,186.
                                                     inadvertent failure to
                                                     submit certified statement
                                                     or submission of false or
                                                     misleading statement.
(6) 12 U.S.C. 1782(d)(2)(C).......................  Tier 3 CMP for failure to      $1,759,309 or 1 percent of
                                                     submit a certified statement   the total assets of the
                                                     or the submission of a false   credit union, whichever is
                                                     or misleading statement done   less.
                                                     knowingly or with reckless
                                                     disregard.
(7) 12 U.S.C. 1785(a)(3)..........................  Non-compliance with insurance  $120.
                                                     logo requirements.
(8) 12 U.S.C. 1785(e) (3).........................  Non-compliance with NCUA       $279.
                                                     security requirements.
(9) 12 U.S.C. 1786(k)(2)(A).......................  Tier 1 CMP for violations of   $9,623.
                                                     law, regulation, and other
                                                     orders or agreements.
(10) 12 U.S.C. 1786(k)(2)(A)......................  Tier 2 CMP for violations of   $48,114.
                                                     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 knowingly       For a person other than an
                                                     committing the violations      insured credit union:
                                                     under Tier 1 or 2 (natural     $1,924,589; For an insured
                                                     person).                       credit union: $1,924,589 or
                                                                                    1 percent of the total
                                                                                    assets of the credit union,
                                                                                    whichever is less.
(12) 12 U.S.C. 1786(w)(5)(ii).....................  Non-compliance with senior     $316,566.
                                                     examiner post-employment
                                                     restrictions.
(13) 15 U.S.C. 1639e(k)...........................  Non-compliance with appraisal  First violation: $11,053.
                                                     independence requirements.     Subsequent violations:
                                                                                    $22,105.
(14) 42 U.S.C. 4012a(f)(5)........................  Non-compliance with flood      $2,090.
                                                     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 pre-dated the increase and occurred after November 2, 2015.

[FR Doc. 2017-00473 Filed 1-19-17; 8:45 am]
BILLING CODE 7535-01-P