Civil Monetary Penalty Inflation Adjustment, 7637-7641 [2017-00473]
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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:
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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
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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
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U.S.C. 603 and 604.
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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:
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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: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• NCUA Web site: https://
www.ncua.gov/regulation-supervision/
Pages/rules/proposed.aspx. Follow the
instructions for submitting comments.
• Email: Address to regcomments@
ncua.gov. Include ‘‘[Your name]
Comments on ‘‘Civil Monetary Penalty
Inflation Adjustment’’ in the email
subject line.
• Fax: (703) 518–6319. Use the
subject line described above for email.
• Mail: Address to Gerard Poliquin,
Secretary of the Board, National Credit
Union Administration, 1775 Duke
Street, Alexandria, Virginia 22314–
3428.
• Hand Delivery/Courier: Same as
mail address.
Public Inspection: All public
comments are available on the agency’s
Web site at https://www.ncua.gov/
RegulationsOpinionsLaws/comments as
submitted, except as may not be
possible for technical reasons. Public
comments will not be edited to remove
any identifying or contact information.
Paper copies of comments may be
inspected in NCUA’s law library at 1775
Duke Street, Alexandria, Virginia 22314,
by appointment weekdays between 9:00
a.m. and 3:00 p.m. To make an
appointment, call (703) 518–6546 or
send an email to OGCMail@ncua.gov.
ADDRESSES:
Ian
Marenna, Senior Trial Attorney, at 1775
Duke Street, Alexandria, VA 22314, or
telephone: (703) 518–6540.
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FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Legal Background
II. Calculation of Adjustments
III. Regulatory Procedures
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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.
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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: https://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.
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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)
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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.
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Adjusted
maximum
($)
(Current
maximum ×
multiplier)
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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.
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B. Regulatory Flexibility Act
The Regulatory Flexibility Act
requires the Board to prepare an
analysis to describe any significant
economic impact a regulation may have
on a substantial number of small
entities.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).
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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).
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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]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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: https://www.regulations.gov.
Follow the instructions for submitting comments.
NCUA Web site: https://www.ncua.gov/regulation-supervision/Pages/rules/proposed.aspx. Follow the instructions for
submitting comments.
Email: Address to regcomments@ncua.gov. Include ``[Your
name] Comments on ``Civil Monetary Penalty Inflation Adjustment'' in
the email subject line.
Fax: (703) 518-6319. Use the subject line described above
for email.
Mail: Address to Gerard Poliquin, Secretary of the Board,
National Credit Union Administration, 1775 Duke Street, Alexandria,
Virginia 22314-3428.
Hand Delivery/Courier: Same as mail address.
Public Inspection: All public comments are available on the
agency's Web site at https://www.ncua.gov/RegulationsOpinionsLaws/comments as submitted, except as may not be possible for technical
reasons. Public comments will not be edited to remove any identifying
or contact information. Paper copies of comments may be inspected in
NCUA's law library at 1775 Duke Street, Alexandria, Virginia 22314, by
appointment weekdays between 9:00 a.m. and 3:00 p.m. To make an
appointment, call (703) 518-6546 or send an email to OGCMail@ncua.gov.
FOR FURTHER INFORMATION CONTACT: Ian Marenna, Senior Trial Attorney, at
1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6540.
SUPPLEMENTARY INFORMATION:
I. Legal Background
II. Calculation of Adjustments
III. Regulatory Procedures
I. Legal Background
A. Statutory Requirements and 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: https://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
