Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts Final Rule and Adjustment of Civil Monetary Penalty Amounts for 2017, 24521-24525 [2017-11056]
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Question 2: State whether you
provided the information that you
submitted to the CFTC pursuant to a
cooperation agreement with the CFTC,
or with any other agency or
organization.
Question 3: State whether you
provided this information before you (or
anyone representing you) received any
request, inquiry or demand that relates
to the subject matter of your submission
(i) from the CFTC, (ii) in connection
with an investigation, inspection or
examination by any registered entity,
registered futures association or selfregulatory organization, or (iii) in
connection with an investigation by the
Congress, or any other federal or state
authority.
Question 4: State whether you are
currently a subject or target of a criminal
investigation, or whether you have been
convicted of a criminal violation, in
connection with the information that
you submitted to the CFTC and upon
which your application for an award is
based.
Question 5: State whether you
acquired the information that you
provided to the CFTC from any
individual described in Questions 1
through 4 of this section.
Question 6: If you answered yes to
any of Questions 1 through 5 of this
section, please provide details.
Section G: Entitlement to Award
This section is optional. Use this
section to explain the basis for your
belief that you are entitled to an award
in connection with your submission of
information to the CFTC, or to another
agency in connection with a related
action. Specifically, address why you
believe that you voluntarily provided
the CFTC with original information that
led to the successful enforcement of a
judicial or administrative action filed by
the CFTC, or a related action. Refer to
§ 165.9 of the CFTC’s regulations for
further information concerning the
relevant award criteria.
Section 23(c)(1)(B) of the Commodity
Exchange Act and § 165.9(a) of the
CFTC’s regulations require the CFTC to
consider the following factors in
determining the amount of an award: (1)
The significance of the information
provided by a whistleblower to the
success of the CFTC action or related
action; (2) the degree of assistance
provided by the whistleblower and any
legal representative of the whistleblower
in the CFTC action or related action; (3)
the programmatic interest of the CFTC
in deterring violations of the
Commodity Exchange Act (including
regulations under the Act) by making
awards to whistleblowers who provide
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17:28 May 26, 2017
Jkt 241001
information that leads to the successful
enforcement of such laws; (4) whether
the award otherwise enhances the
CFTC’s ability to enforce the
Commodity Exchange Act, protect
customers, and encourage the
submission of high quality information
from whistleblowers; and (5) potential
adverse incentives from oversize
awards. Address these factors in your
response as well.
Section H: Claimant’s Declaration
You must sign this Declaration if you
are submitting this claim pursuant to
the CFTC whistleblower program and
wish to be considered for an award. If
you are submitting your claim
anonymously, you must do so through
an attorney, and you must provide your
attorney with your original signed Form
WB–APP.
Section I: Counsel Certification
If you are submitting this claim
pursuant to the CFTC whistleblower
program anonymously, you must do so
through an attorney, and your attorney
must sign the Counsel Certification
Section.
Issued in Washington, DC, on May 22,
2017, by the Commission.
Christopher J. Kirkpatrick,
Secretary of the Commission.
Note: The following appendix will not
appear in the Code of Federal Regulations.
Appendix to Whistleblower Awards
Process—Commission Voting Summary
On this matter, Acting Chairman Giancarlo
and Commissioner Bowen voted in the
affirmative. No Commissioner voted in the
negative.
[FR Doc. 2017–10801 Filed 5–26–17; 8:45 am]
BILLING CODE 6351–01–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR–5942–F–02]
RIN 2501–AD79
Inflation Catch-Up Adjustment of Civil
Monetary Penalty Amounts Final Rule
and Adjustment of Civil Monetary
Penalty Amounts for 2017
AGENCY:
Office of the General Counsel,
HUD.
ACTION:
Final rule.
This rule makes final the
interim final rule, published on June 15,
2016, to amend HUD’s civil monetary
penalty (CMP) regulations. The interim
SUMMARY:
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final rule applied a new methodology to
calculate civil money penalties as
mandated by the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015, starting with a ‘‘catch up’’
adjustment to correct previous
inaccuracies; removed three obsolete
civil monetary penalty provisions; and
made a technical change to the existing
codified regulation implementing the
Program Fraud Civil Remedies Act. The
changes from the interim final rule
made final by this final rule continue to
be effective as of August 16, 2016.
In addition, this rule provides for
2017 inflation adjustments of civil
monetary penalty amounts required by
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, and makes three technical
amendments and a conforming statutory
change.
DATES: Effective date: June 29, 2017.
Applicability date: The applicability
date for catch-up adjustment was
August 16, 2016.
FOR FURTHER INFORMATION CONTACT:
Dane Narode, Associate General
Counsel, Office of Program
Enforcement, Department of Housing
and Urban Development, 1250
Maryland Avenue SW., Suite 200,
Washington, DC 20024; telephone
number 202–245–4141 (this is not a tollfree number). Hearing- or speechimpaired individuals may access this
number via TTY by calling the Federal
Information Relay Service, toll-free, at
800–877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
A. The June 15, 2016, Interim Rule
The Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (2015 Act) (Pub. L. 114–74)
amended the Federal Civil Penalties
Inflation Adjustment Act of 1990 (28
U.S.C. 2461 note) requiring all Federal
agencies to issue an interim final rule
implementing changes to their civil
money penalties. On June 15, 2016,
pursuant to the requirements of the
2015 Act, HUD published an interim
final rule for public comment, entitled
‘‘Inflation Catch-Up Adjustment of Civil
Monetary Penalty Amounts’’ (81 FR
38931). The 2015 Act required agencies
to make an initial catch-up adjustment
by interim final rule, using a new
methodology designed to correct
inaccuracies in the previous method of
computing inflation adjustments. In
order to address these inaccuracies, the
2015 Act excluded adjustments made
under the law prior to its amendment,
and it provided that the initial catch-up
adjustment was the percentage by which
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the Consumer Price Index (CPI) for the
month of October 2015 exceeded that of
the month of October of the calendar
year during which the amount of the
CMP was originally established or
otherwise adjusted under a provision of
law other than the Federal Civil Money
Penalties Inflation Adjustment Act of
1990. Increases in the initial catch-up
adjustment were capped at 150 percent
of the amount of the CMP in effect as
of the date of enactment of the 2015 Act.
The interim final rule established the
new adjusted penalty amount for each
provision under which HUD is
authorized to assess a CMP (81 FR
38935–38936); removed the obsolete
CMP provisions that were codified at 24
CFR 30.30, 30.55, and 30.69 (81 FR
38935); and made a correction to 24 CFR
28.10 to include liability for causing a
false claim or statement to be made, in
addition to liability for making a false
claim or statement (81 FR 38935).
The public comment period for the
interim final rule closed on August 15,
2016. The interim final rule became
effective on August 16, 2016. The
August 16, 2016, effective date for the
amendments made by the interim final
rule is unchanged. HUD received one
comment in response to the interim
final rule, but it was not actually
relevant to any issue in the interim final
rule.1
B. This 2017 Inflation Adjustment
After the catch-up adjustment, the
2015 Act requires agencies to make
subsequent annual adjustments for
inflation ‘‘notwithstanding section 553
of title 5, United States Code.’’ Section
553 refers to the Administrative
Procedure Act, which might otherwise
require a delay for advance notice and
opportunity for public comment on
future annual inflation adjustments. The
first of these subsequent adjustments is
for 2017.
The annual adjustment is based on
the percent change between the U.S.
Department of Labor’s Consumer Price
Index for All Urban Consumers (‘‘CPI–
U’’) for the month of October preceding
the date of the adjustment, and the CPI–
U for October of the prior year (28
U.S.C. 2461 note, section (5)(b)(1)).
Based on that formula, the cost-of-living
adjustment multiplier for 2017 is
1.01636.2 Pursuant to the 2015 Act,
adjustments are rounded to the nearest
dollar.3
II. This Final Rule
This rule makes final the June 15,
2016, interim rule. In addition, this rule
makes the required 2017 inflation
adjustment. Since HUD is not applying
these adjustments retroactively, the
2016 increases being finalized apply to
violations occurring prior to the
effective date of this final rule (and on
and after the effective date of the 2016
interim rule) and the 2017 increases
apply to violations occurring on or after
this rule’s effective date.
Along with the 2017 inflation
adjustment in this final rule, HUD also
makes conforming and technical
amendments to §§ 30.5, 30.10, 30.35,
Regulatory
citation
(24 CFR)
30.36, and 30.80. Specifically,
references to the former mortgage
assignment procedures (in § 30.35),
Urban Homesteading program (in
§§ 30.5 and 30.80), and the Loan
Correspondent program (in § 30.36) are
removed, as those programs have been
ended and are no longer active. In
addition, the Helping Families Save
Their Homes Act of 2009 (Pub. L. 111–
22) amended the HUD Reform Act of
1989 (12 U.S.C. 1735f–14(a)(2))
definition for ‘‘knowing or knowingly’’
as it applies to civil money penalties
against mortgagees, lenders, and other
participants in FHA programs. This rule
amends the definition for ‘‘knowing or
knowingly’’ in § 30.10 to include the
2009 statutory definition.
For each component, HUD provides a
table showing how the penalties are
being adjusted for 2017 pursuant to the
2015 Act. In the first column, HUD
provides a description of the penalty. In
the second column (‘‘Statutory
Citation,’’) HUD provides the United
States Code statutory citation providing
for the penalty. In the third column
(‘‘Regulatory citation’’), HUD provides
the Code of Federal Regulations citation
under title 24 for the penalty. In the
fourth column (‘‘Previous Amount’’),
HUD provides the amount of the penalty
pursuant to the interim rule
implementing the ‘‘catch-up’’
adjustment (81 FR 38931, June 15,
2016). In the fifth column, (‘‘2017
Adjusted Amount’’) HUD lists the
penalty after applying the 2017 inflation
adjustment.
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Statutory citation
False Claims & Statements.
Advance Disclosure of
Funding.
Disclosure of Subsidy
Layering.
FHA Mortgagees and
Lenders Violations.
Other FHA Participants
Violations.
Indian Loan Mortgagees
Violations.
Multifamily & Section
202 or 811 Owners
Violations.
Ginnie Mae Issuers &
Custodians Violations.
Title I Broker & Dealers
Violations.
Omnibus Budget Reconciliation Act of 1986 (31
U.S.C. 3802(a)(1)).
Department of Housing and Urban Development Act (42 U.S.C. 3537a(c)).
Department of Housing and Urban Development Act (42 U.S.C. 3545(f)).
HUD Reform Act of 1989 (12 U.S.C. 1735f–
14(a)(2)).
HUD Reform Act of 1989 (12 U.S.C. 1735f–
14(a)(2)).
Housing Community Development Act of 1992
(12 U.S.C. 1715z–13a(g)(2)).
HUD Reform Act of 1989 (12 U.S.C. 1735f–
15(c)(2)).
§ 28.10
$10,781 .........................
$10,957
§ 30.20
$18,936 .........................
$19,246
§ 30.25
$18,936 .........................
$19,246
§ 30.35
Per Violation: $9,468
Per Year: $1,893,610.
Per Violation: $9,468
Per Year: $1,893,610.
Per Violation: $9,468
Per Year: $1,893,610.
$47,340 .........................
Per Violation: $9,623
Per Year: $1,924,589
Per Violation: $9,623
Per Year: $1,924,589
Per Violation: $9,623
Per Year: $1,924,589
$48,114
HUD Reform Act of 1989 (12 U.S.C. 1723i(b))
§ 30.50
HUD Reform Act of 1989 (12 U.S.C. 1703) ......
§ 30.60
Per Violation: $9,468
Per Year: $1,893,610.
Per Violation: $9,468
Per Year: $1,893,610.
Per Violation: $9,623
Per Year: $1,924,589
Per Violation: $9,623
Per Year: $1,924,589
1 The comment is available for public inspection
at: https://www.regulations.gov/docket?D=HUD2016-0062.
2 Office of Management and Budget, M–17–11,
Memorandum for the Heads of Executive
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§ 30.36
§ 30.40
§ 30.45
Previous amount
2017 Adjusted
amount
Description
Departments and Agencies, Implementation of the
2017 annual adjustment pursuant to the Federal
Civil Penalties Inflation Adjustment Act. (https://
obamawhitehouse.archives.gov/sites/default/files/
omb/memoranda/2017/m-17-11_0.pdf). (October
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2016 CPI–U (241.729) ¥ October 2015 CPI–U
(237.838) = 1.01636.)
3 28 U.S.C. 2461 note.
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Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules and Regulations
Description
Lead Disclosure Violation.
Regulatory
citation
(24 CFR)
Statutory citation
Fair Housing Act Civil
Penalties.
Title X—Residential Lead-Based Paint Hazard
Reduction Act of 1992 (42 U.S.C.
4852d(b)(1)).
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437z–
1(b)(2)).
The Lobbying Disclosure Act of 1995 (31
U.S.C. 1352).
Fair Housing Amendments Act of 1988 (42
U.S.C. 3612(g)(3)).
Manufactured Housing
Regulations Violation.
Housing Community Development Act of 1974
(42 U.S.C. 5410).
Section 8 Owners Violations.
Lobbying Violation ........
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III. Justification for Final Rulemaking
for the 2017 Adjustments
HUD generally publishes regulations
for public comment before issuing a rule
for effect, in accordance with its own
regulations on rulemaking in 24 CFR
part 10. However, part 10 provides for
exceptions to the general rule if the
agency finds good cause to omit
advanced notice and public
participation. The good cause
requirement is satisfied when prior
public procedure is ‘‘impractical,
unnecessary, or contrary to the public
interest’’ (see 24 CFR 10.1). As
discussed, this final rule adopts without
change the amendments offered for
public comment in the June 15, 2106,
interim final rule. In addition, this rule
makes the required 2017 inflation
adjustment, which HUD does not have
discretion to change. Moreover, the
2015 Act specifies that a delay in the
effective date under the Administrative
Procedure Act is not required for
subsequent annual adjustments under
the 2015 Act. HUD has determined,
therefore, that it is unnecessary to delay
the effectiveness of the 2017 inflation
adjustments to solicit prior public
comments.
As discussed in the preamble to the
June 15, 2016, interim final rule, section
7(o) of the Department of Housing and
Urban Development Act (42 U.S.C.
3535(o)) requires that any HUD
regulation implementing any provision
of the Department of Housing and Urban
Development Reform Act of 1989 that
authorizes the imposition of a civil
money penalty may not become
effective until after the expiration of a
public comment period of not less than
60 days. HUD met this separate 60-day
delay requirement for implementing
civil money penalties when HUD
implemented the new 2015 Act penalty
calculation in its June 16, 2016, interim
final rule.
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Jkt 241001
Previous amount
$16,773 .........................
$17,047
§ 30.68
$36,794 .........................
$37,396
§ 87.400
Min: $18,936 Max:
$189,361.
No Priors: $19,787 One
Prior: $49,467 Two or
More Priors: $98,935.
Min: $19,246 Max:
$192,459
No Priors: $20,111 One
Prior: $50,276 Two or
More Priors:
$100,554
Per Violation: $2,795
Per Year: $3,493,738
§ 180.671(a)
§ 3282.10
Per Violation: $2,750
Per Year: $3,437,500.
IV. Findings and Certifications
Regulatory Review—Executive Orders
12866 and 13563
Under Executive Order 12866
(Regulatory Planning and Review), a
determination must be made whether a
regulatory action is significant and,
therefore, subject to review by the Office
of Management and Budget (OMB) in
accordance with the requirements of the
order. Executive Order 13563
(Improving Regulations and Regulatory
Review) directs executive agencies to
analyze regulations that are ‘‘outmoded,
ineffective, insufficient, or excessively
burdensome, and to modify, streamline,
expand, or repeal them in accordance
with what has been learned. Executive
Order 13563 also directs that, where
relevant, feasible, and consistent with
regulatory objectives, and to the extent
permitted by law, agencies are to
identify and consider regulatory
approaches that reduce burdens and
maintain flexibility and freedom of
choice for the public. As discussed
above in this preamble, this final rule
adjusts existing civil monetary penalties
for inflation by a statutorily required
amount.
As a result of this review, OMB
determined that this rule was not
significant under Executive Order 12866
and Executive Order 13563.
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2017 Adjusted
amount
§ 30.65
Moreover, and as noted above, the
2017 inflation adjustments are made in
accordance with a statutorily prescribed
formula that does not provide for agency
discretion. Accordingly, a delay in the
effectiveness of the 2017 inflation
adjustments in order to provide the
public with an opportunity to comment
is unnecessary because the 2015 Act
exempts the adjustments from the need
for delay and, in any event, HUD would
not have the discretion to make changes
as a result of any comments.
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Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.) generally requires
an agency to conduct a regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements, unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. Because HUD
has determined that good cause exists to
issue this rule without prior public
comment, this rule is not subject to the
requirement to publish an initial or final
regulatory flexibility analysis under the
RFA as part of such action.
Unfunded Mandates Reform
Section 202 of the Unfunded
Mandates Reform Act of 1995 (UMRA) 4
requires that an agency prepare a
budgetary impact statement before
promulgating a rule that includes a
Federal mandate that may result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
in any one year. If a budgetary impact
statement is required, section 205 of
UMRA also requires an agency to
identity and consider a reasonable
number of regulatory alternatives before
promulgating a rule.5 However, the
UMRA applies only to rules for which
an agency publishes a general notice of
proposed rulemaking. As discussed
above, HUD has determined, for good
cause, that prior notice and public
comment is not required on this rule
and, therefore, the UMRA does not
apply to this final rule.
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits an agency from
publishing any rule that has federalism
implications if the rule either imposes
42
52
U.S.C. 1532.
U.S.C. 1534.
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substantial direct compliance costs on
State and local governments and is not
required by statute, or the rule preempts
State law, unless the agency meets the
consultation and funding requirements
of section 6 of the Executive Order. This
rule will not have federalism
implications and would not impose
substantial direct compliance costs on
State and local governments or preempt
State law within the meaning of the
Executive order.
Environmental Review
This interim final rule does not direct,
provide for assistance or loan and
mortgage insurance for, or otherwise
govern, or regulate, real property
acquisition, disposition, leasing,
rehabilitation, alteration, demolition, or
new construction, or establish, revise, or
provide for standards for construction or
construction materials, manufactured
housing, or occupancy. Accordingly,
under 24 CFR 50.19(c)(1), this final rule
is categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
List of Subjects
§ 28.10 Basis for civil penalties and
assessments.
(a) * * *
(1) A civil penalty of not more than
$10,957 may be imposed upon any
person who makes, presents, or submits,
or causes to be made, presented, or
submitted, a claim that the person
knows or has reason to know:
*
*
*
*
*
(b) * * *
(1) A civil penalty of not more than
$10,957 may be imposed upon any
person who makes, presents, or submits,
or causes to be made, presented, or
submitted, a written statement that:
*
*
*
*
*
Authority: 12 U.S.C. 1701q–1, 1703, 1723i,
1735f–14, and 1735f–15; 15 U.S.C. 1717a; 28
U.S.C. 1 note and 2461 note; 42 U.S.C.
1437z–1 and 3535(d).
§ 30.5
[Amended]
4. In § 30.5, remove paragraph (c) and
redesignate paragraphs (d), (e), and (f) as
paragraphs (c), (d), and (e), respectively.
■
24 CFR Part 180
Administrative practice and
procedure, Aged, Civil rights, Fair
housing, Individuals with disabilities,
Investigations, Mortgages, Penalties,
Reporting and recordkeeping
requirements.
sradovich on DSK3GMQ082PROD with RULES
2. In § 28.10, revise the introductory
text of paragraphs (a)(1) and (b)(1), to
read as follows:
■
3. The authority citation for part 30
continues to read as follows:
24 CFR Part 87
Government contracts, Grant
programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping
requirements.
§ 30.10
[Amended]
5. In § 30.10, add at the end of the
definition of ‘‘Knowing or Knowingly’’
the sentence ‘‘For purposes of §§ 30.35
and 30.36, knowing or knowingly is
defined at 12 U.S.C. 1735f–14(g).’’
■ 6. In § 30.20, revise paragraph (b) to
read as follows:
■
§ 30.20 Ethical violations by HUD
employees.
24 CFR Part 3282
Administrative practice and
procedure, Consumer protection,
Intergovernmental relations,
Manufactured homes, Reporting and
recordkeeping requirements.
Accordingly, for the reasons described
in the preamble, HUD adopts as final
the interim final rule published on June
15, 2016, at 81 FR 38931, and further
amends 24 CFR parts 28, 30, 87, 180,
and 3282 as follows:
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Authority: 28 U.S.C. 2461 note; 31 U.S.C.
3801–3812; 42 U.S.C. 3535(d).
■
24 CFR Part 30
Administrative practice and
procedure, Grant programs—housing
and community development, Loan
programs—housing and community
development, Mortgage insurance,
Penalties.
17:28 May 26, 2017
1. The authority citation for part 28
continues to read as follows:
paragraph (a)(7) and add in their place
‘‘§ 203.664’’; and revise the first
sentence in paragraph (c)(1) to read as
follows:
■
PART 30—CIVIL MONEY PENALTIES:
CERTAIN PROHIBITED CONDUCT
24 CFR Part 28
Administrative practice and
procedure, Claims, Fraud, Penalties.
VerDate Sep<11>2014
PART 28—IMPLEMENTATION OF THE
PROGRAM FRAUD CIVIL REMEDIES
ACT OF 1986
*
*
*
*
*
(b) Maximum penalty. The maximum
penalty is $19,246 for each violation.
■ 7. In § 30.25, revise paragraph (b) to
read as follows:
§ 30.25 Violations by applicants for
assistance.
*
*
*
*
*
(b) Maximum penalty. The maximum
penalty is $19,246 for each violation.
■ 8. In § 30.35, remove the words
‘‘§§ 203.650 through 203.664’’ in
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§ 30.35
Mortgagees and lenders.
*
*
*
*
*
(c)(1) Amount of penalty. The
maximum penalty is $9,623 for each
violation, up to a limit of $1,924,589 for
all violations committed during any
one-year period. * * *
*
*
*
*
*
■ 9. In § 30.36, remove the words ‘‘or
correspondent’’ in paragraph (b)(3) and
revise the first sentence in paragraph (c)
to read as follows:
§ 30.36 Other participants in FHA
programs.
*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $9,623 for each violation, up
to a limit of $1,924,589 for all violations
committed during any one-year period.
* * *
■ 10. In § 30.40, revise the first sentence
in paragraph (c) to read as follows:
§ 30.40 Loan guarantees for Indian
housing.
*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $9,623 for each violation, up
to a limit of $1,924,589 for all violations
committed during any one-year period.
* * *
■ 11. In § 30.45, revise paragraph (g) to
read as follows:
§ 30.45 Multifamily and section 202 or 811
mortgagors.
*
*
*
*
*
(g) Maximum penalty. The maximum
penalty for each violation under
paragraphs (c) and (f) of this section is
$48,114.
*
*
*
*
*
■ 12. In § 30.50, revise the first sentence
in paragraph (c) to read as follows:
§ 30.50
GNMA issuers and custodians.
*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $9,623 for each violation, up
to a limit of $1,924,589 during any oneyear period. * * *
■ 13. In § 30.60, revise paragraph (c) to
read as follows:
§ 30.60 Dealers or sponsored third-party
originators.
*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $9,623 for each violation, up
to a limit for any particular person of
$1,924,589 during any one-year period.
■ 14. In § 30.65, revise paragraph (b) to
read as follows:
E:\FR\FM\30MYR1.SGM
30MYR1
Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules and Regulations
§ 30.65 Failure to disclose lead-based
paint hazards.
§ 180.671 Assessing civil penalties for Fair
Housing Act cases.
*
(a) * * *
(1) $20,111, if the respondent has not
been adjudged in any administrative
hearing or civil action permitted under
the Fair Housing Act or any state or
local fair housing law, or in any
licensing or regulatory proceeding
conducted by a federal, state, or local
governmental agency, to have
committed any prior discriminatory
housing practice.
(2) $50,276, if the respondent has
been adjudged in any administrative
hearing or civil action permitted under
the Fair Housing Act, or under any state
or local fair housing law, or in any
licensing or regulatory proceeding
conducted by a federal, state, or local
government agency, to have committed
one other discriminatory housing
practice and the adjudication was made
during the 5-year period preceding the
date of filing of the charge.
(3) $100,554, if the respondent has
been adjudged in any administrative
hearings or civil actions permitted
under the Fair Housing Act, or under
any state or local fair housing law, or in
any licensing or regulatory proceeding
conducted by a federal, state, or local
government agency, to have committed
two or more discriminatory housing
practices and the adjudications were
made during the 7-year period
preceding the date of filing of the
charge.
*
*
*
*
*
*
*
*
*
(b) Amount of penalty. The maximum
penalty is $17,047 for each violation.
■ 15. In § 30.68, revise paragraph (c) to
read as follows:
§ 30.68
Section 8 owners.
*
*
*
*
*
(c) Maximum penalty. The maximum
penalty for each violation under this
section is $37,396.
*
*
*
*
*
§ 30.80
[Amended]
16. In § 30.80, add the word ‘‘and’’
after paragraph (h); remove paragraph
(i); and redesignate paragraphs (j), (k),
and (l) as paragraphs (i), (j), and (k),
respectively.
■
PART 87—NEW RESTRICTIONS ON
LOBBYING
17. The authority citation for part 87
continues to read as follows:
■
Authority: 28 U.S.C. 1 note; 31 U.S.C.
1352; 42 U.S.C. 3535(d).
18. In § 87.400, revise paragraphs (a),
(b), and (e) to read as follows:
■
§ 87.400
Penalties.
(a) Any person who makes an
expenditure prohibited herein shall be
subject to a civil penalty of not less than
$19,246 and not more than $192,459 for
each such expenditure.
(b) Any person who fails to file or
amend the disclosure form (see
appendix B) to be filed or amended if
required herein, shall be subject to a
civil penalty of not less than $19,246
and not more than $192,459 for each
such failure.
*
*
*
*
*
(e) First offenders under paragraphs
(a) or (b) of this section shall be subject
to a civil penalty of $19,246, absent
aggravating circumstances. Second and
subsequent offenses by persons shall be
subject to an appropriate civil penalty
between $19,246 and $192,459, as
determined by the agency head or his or
her designee.
*
*
*
*
*
21. The authority citation for part
3282 continues to read as follows:
■
Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461
note; 42 U.S.C. 3535(d) and 5424.
22. Revise § 3282.10 to read as
follows:
■
§ 3282.10
Civil and criminal penalties.
19. The authority citation for part 180
continues to read as follows:
Failure to comply with these
regulations may subject the party in
question to the civil and criminal
penalties provided for in section 611 of
the Act, 42 U.S.C. 5410. The maximum
amount of penalties imposed under
section 611 of the Act shall be $2,795
for each violation, up to a maximum of
$3,493,738 for any related series of
violations occurring within one year
from the date of the first violation.
Authority: 28 U.S.C. 1 note; 29 U.S.C. 794;
42 U.S.C. 2000d–1, 3535(d), 3601–3619,
5301–5320, and 6103.
Dated: May 22, 2017.
Bethany A. Zorc,
Principal Deputy General Counsel.
20. In § 180.671, revise paragraphs
(a)(1), (2), and (3) to read as follows:
[FR Doc. 2017–11056 Filed 5–26–17; 8:45 am]
PART 180—CONSOLIDATED HUD
HEARING PROCEDURES FOR CIVIL
RIGHTS MATTERS
sradovich on DSK3GMQ082PROD with RULES
PART 3282—MANUFACTURED HOME
PROCEDURAL AND ENFORCEMENT
REGULATIONS
■
■
VerDate Sep<11>2014
17:28 May 26, 2017
Jkt 241001
BILLING CODE 4210–67–P
PO 00000
Frm 00071
Fmt 4700
Sfmt 4700
24525
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2017–0408]
RIN 1625–AA00
Safety Zone; Buffalo Carnival; Buffalo
Outer Harbor, Buffalo, NY
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a temporary safety zone on
Lake Erie, Buffalo Outer Harbor, Buffalo,
NY. This safety zone is intended to
restrict vessels from a portion of the
Outer Harbor during the May 28, 2017
fireworks display. This temporary safety
zone is necessary to protect mariners
and vessels from the navigational
hazards associated with a fireworks
display.
DATES: This rule is effective from 8:45
p.m. until 9:45 p.m. on May 28, 2017.
ADDRESSES: To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type USCG–2017–
0408 in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
rule.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
email LT Michael Collet, Chief of
Waterways Management, U.S. Coast
Guard Sector Buffalo; telephone 716–
843–9322, email
SectorBuffaloMarineSafety@uscg.mil.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Table of Abbreviations
CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
§ Section
U.S.C. United States Code
II. Background Information and
Regulatory History
The Coast Guard is issuing this
temporary rule without prior notice and
opportunity to comment pursuant to
authority under section 4(a) of the
Administrative Procedure Act (APA) (5
U.S.C. 553(b)). This provision
authorizes an agency to issue a rule
without prior notice and opportunity to
comment when the agency for good
cause finds that those procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Under 5 U.S.C.
553(b)(B), the Coast Guard finds that
E:\FR\FM\30MYR1.SGM
30MYR1
]]>Agencies
[Federal Register Volume 82, Number 102 (Tuesday, May 30, 2017)]
[Rules and Regulations]
[Pages 24521-24525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11056]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR-5942-F-02]
RIN 2501-AD79
Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts
Final Rule and Adjustment of Civil Monetary Penalty Amounts for 2017
AGENCY: Office of the General Counsel, HUD.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule makes final the interim final rule, published on
June 15, 2016, to amend HUD's civil monetary penalty (CMP) regulations.
The interim final rule applied a new methodology to calculate civil
money penalties as mandated by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015, starting with a ``catch up''
adjustment to correct previous inaccuracies; removed three obsolete
civil monetary penalty provisions; and made a technical change to the
existing codified regulation implementing the Program Fraud Civil
Remedies Act. The changes from the interim final rule made final by
this final rule continue to be effective as of August 16, 2016.
In addition, this rule provides for 2017 inflation adjustments of
civil monetary penalty amounts required by the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015, and makes three
technical amendments and a conforming statutory change.
DATES: Effective date: June 29, 2017.
Applicability date: The applicability date for catch-up adjustment
was August 16, 2016.
FOR FURTHER INFORMATION CONTACT: Dane Narode, Associate General
Counsel, Office of Program Enforcement, Department of Housing and Urban
Development, 1250 Maryland Avenue SW., Suite 200, Washington, DC 20024;
telephone number 202-245-4141 (this is not a toll-free number).
Hearing- or speech-impaired individuals may access this number via TTY
by calling the Federal Information Relay Service, toll-free, at 800-
877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
A. The June 15, 2016, Interim Rule
The Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (2015 Act) (Pub. L. 114-74) amended the Federal Civil
Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note)
requiring all Federal agencies to issue an interim final rule
implementing changes to their civil money penalties. On June 15, 2016,
pursuant to the requirements of the 2015 Act, HUD published an interim
final rule for public comment, entitled ``Inflation Catch-Up Adjustment
of Civil Monetary Penalty Amounts'' (81 FR 38931). The 2015 Act
required agencies to make an initial catch-up adjustment by interim
final rule, using a new methodology designed to correct inaccuracies in
the previous method of computing inflation adjustments. In order to
address these inaccuracies, the 2015 Act excluded adjustments made
under the law prior to its amendment, and it provided that the initial
catch-up adjustment was the percentage by which
[[Page 24522]]
the Consumer Price Index (CPI) for the month of October 2015 exceeded
that of the month of October of the calendar year during which the
amount of the CMP was originally established or otherwise adjusted
under a provision of law other than the Federal Civil Money Penalties
Inflation Adjustment Act of 1990. Increases in the initial catch-up
adjustment were capped at 150 percent of the amount of the CMP in
effect as of the date of enactment of the 2015 Act.
The interim final rule established the new adjusted penalty amount
for each provision under which HUD is authorized to assess a CMP (81 FR
38935-38936); removed the obsolete CMP provisions that were codified at
24 CFR 30.30, 30.55, and 30.69 (81 FR 38935); and made a correction to
24 CFR 28.10 to include liability for causing a false claim or
statement to be made, in addition to liability for making a false claim
or statement (81 FR 38935).
The public comment period for the interim final rule closed on
August 15, 2016. The interim final rule became effective on August 16,
2016. The August 16, 2016, effective date for the amendments made by
the interim final rule is unchanged. HUD received one comment in
response to the interim final rule, but it was not actually relevant to
any issue in the interim final rule.\1\
---------------------------------------------------------------------------
\1\ The comment is available for public inspection at: https://www.regulations.gov/docket?D=HUD-2016-0062.
---------------------------------------------------------------------------
B. This 2017 Inflation Adjustment
After the catch-up adjustment, the 2015 Act requires agencies to
make subsequent annual adjustments for inflation ``notwithstanding
section 553 of title 5, United States Code.'' Section 553 refers to the
Administrative Procedure Act, which might otherwise require a delay for
advance notice and opportunity for public comment on future annual
inflation adjustments. The first of these subsequent adjustments is for
2017.
The annual adjustment is based on the percent change between the
U.S. Department of Labor's Consumer Price Index for All Urban Consumers
(``CPI-U'') for the month of October preceding the date of the
adjustment, and the CPI-U for October of the prior year (28 U.S.C. 2461
note, section (5)(b)(1)). Based on that formula, the cost-of-living
adjustment multiplier for 2017 is 1.01636.\2\ Pursuant to the 2015 Act,
adjustments are rounded to the nearest dollar.\3\
---------------------------------------------------------------------------
\2\ Office of Management and Budget, M-17-11, Memorandum for the
Heads of Executive Departments and Agencies, Implementation of the
2017 annual adjustment pursuant to the Federal Civil Penalties
Inflation Adjustment Act. (https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf). (October 2016
CPI-U (241.729) - October 2015 CPI-U (237.838) = 1.01636.)
\3\ 28 U.S.C. 2461 note.
---------------------------------------------------------------------------
II. This Final Rule
This rule makes final the June 15, 2016, interim rule. In addition,
this rule makes the required 2017 inflation adjustment. Since HUD is
not applying these adjustments retroactively, the 2016 increases being
finalized apply to violations occurring prior to the effective date of
this final rule (and on and after the effective date of the 2016
interim rule) and the 2017 increases apply to violations occurring on
or after this rule's effective date.
Along with the 2017 inflation adjustment in this final rule, HUD
also makes conforming and technical amendments to Sec. Sec. 30.5,
30.10, 30.35, 30.36, and 30.80. Specifically, references to the former
mortgage assignment procedures (in Sec. 30.35), Urban Homesteading
program (in Sec. Sec. 30.5 and 30.80), and the Loan Correspondent
program (in Sec. 30.36) are removed, as those programs have been ended
and are no longer active. In addition, the Helping Families Save Their
Homes Act of 2009 (Pub. L. 111-22) amended the HUD Reform Act of 1989
(12 U.S.C. 1735f-14(a)(2)) definition for ``knowing or knowingly'' as
it applies to civil money penalties against mortgagees, lenders, and
other participants in FHA programs. This rule amends the definition for
``knowing or knowingly'' in Sec. 30.10 to include the 2009 statutory
definition.
For each component, HUD provides a table showing how the penalties
are being adjusted for 2017 pursuant to the 2015 Act. In the first
column, HUD provides a description of the penalty. In the second column
(``Statutory Citation,'') HUD provides the United States Code statutory
citation providing for the penalty. In the third column (``Regulatory
citation''), HUD provides the Code of Federal Regulations citation
under title 24 for the penalty. In the fourth column (``Previous
Amount''), HUD provides the amount of the penalty pursuant to the
interim rule implementing the ``catch-up'' adjustment (81 FR 38931,
June 15, 2016). In the fifth column, (``2017 Adjusted Amount'') HUD
lists the penalty after applying the 2017 inflation adjustment.
----------------------------------------------------------------------------------------------------------------
Regulatory
Description Statutory citation citation (24 Previous amount 2017 Adjusted
CFR) amount
----------------------------------------------------------------------------------------------------------------
False Claims & Statements........ Omnibus Budget Sec. 28.10 $10,781............ $10,957
Reconciliation Act
of 1986 (31 U.S.C.
3802(a)(1)).
Advance Disclosure of Funding.... Department of Sec. 30.20 $18,936............ $19,246
Housing and Urban
Development Act
(42 U.S.C.
3537a(c)).
Disclosure of Subsidy Layering... Department of Sec. 30.25 $18,936............ $19,246
Housing and Urban
Development Act
(42 U.S.C.
3545(f)).
FHA Mortgagees and Lenders HUD Reform Act of Sec. 30.35 Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $9,468 Per Year: $9,623 Per Year:
1735f-14(a)(2)). $1,893,610. $1,924,589
Other FHA Participants Violations HUD Reform Act of Sec. 30.36 Per Violation: Per Violation:
1989 (12 U.S.C. $9,468 Per Year: $9,623 Per Year:
1735f-14(a)(2)). $1,893,610. $1,924,589
Indian Loan Mortgagees Violations Housing Community Sec. 30.40 Per Violation: Per Violation:
Development Act of $9,468 Per Year: $9,623 Per Year:
1992 (12 U.S.C. $1,893,610. $1,924,589
1715z-13a(g)(2)).
Multifamily & Section 202 or 811 HUD Reform Act of Sec. 30.45 $47,340............ $48,114
Owners Violations. 1989 (12 U.S.C.
1735f-15(c)(2)).
Ginnie Mae Issuers & Custodians HUD Reform Act of Sec. 30.50 Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $9,468 Per Year: $9,623 Per Year:
1723i(b)). $1,893,610. $1,924,589
Title I Broker & Dealers HUD Reform Act of Sec. 30.60 Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $9,468 Per Year: $9,623 Per Year:
1703). $1,893,610. $1,924,589
[[Page 24523]]
Lead Disclosure Violation........ Title X-- Sec. 30.65 $16,773............ $17,047
Residential Lead-
Based Paint Hazard
Reduction Act of
1992 (42 U.S.C.
4852d(b)(1)).
Section 8 Owners Violations...... Multifamily Sec. 30.68 $36,794............ $37,396
Assisted Housing
Reform and
Affordability Act
of 1997 (42 U.S.C.
1437z-1(b)(2)).
Lobbying Violation............... The Lobbying Sec. 87.400 Min: $18,936 Max: Min: $19,246 Max:
Disclosure Act of $189,361. $192,459
1995 (31 U.S.C.
1352).
Fair Housing Act Civil Penalties. Fair Housing Sec. No Priors: $19,787 No Priors: $20,111
Amendments Act of 180.671(a) One Prior: $49,467 One Prior: $50,276
1988 (42 U.S.C. Two or More Two or More
3612(g)(3)). Priors: $98,935. Priors: $100,554
Manufactured Housing Regulations Housing Community Sec. 3282.10 Per Violation: Per Violation:
Violation. Development Act of $2,750 Per Year: $2,795 Per Year:
1974 (42 U.S.C. $3,437,500. $3,493,738
5410).
----------------------------------------------------------------------------------------------------------------
III. Justification for Final Rulemaking for the 2017 Adjustments
HUD generally publishes regulations for public comment before
issuing a rule for effect, in accordance with its own regulations on
rulemaking in 24 CFR part 10. However, part 10 provides for exceptions
to the general rule if the agency finds good cause to omit advanced
notice and public participation. The good cause requirement is
satisfied when prior public procedure is ``impractical, unnecessary, or
contrary to the public interest'' (see 24 CFR 10.1). As discussed, this
final rule adopts without change the amendments offered for public
comment in the June 15, 2106, interim final rule. In addition, this
rule makes the required 2017 inflation adjustment, which HUD does not
have discretion to change. Moreover, the 2015 Act specifies that a
delay in the effective date under the Administrative Procedure Act is
not required for subsequent annual adjustments under the 2015 Act. HUD
has determined, therefore, that it is unnecessary to delay the
effectiveness of the 2017 inflation adjustments to solicit prior public
comments.
As discussed in the preamble to the June 15, 2016, interim final
rule, section 7(o) of the Department of Housing and Urban Development
Act (42 U.S.C. 3535(o)) requires that any HUD regulation implementing
any provision of the Department of Housing and Urban Development Reform
Act of 1989 that authorizes the imposition of a civil money penalty may
not become effective until after the expiration of a public comment
period of not less than 60 days. HUD met this separate 60-day delay
requirement for implementing civil money penalties when HUD implemented
the new 2015 Act penalty calculation in its June 16, 2016, interim
final rule.
Moreover, and as noted above, the 2017 inflation adjustments are
made in accordance with a statutorily prescribed formula that does not
provide for agency discretion. Accordingly, a delay in the
effectiveness of the 2017 inflation adjustments in order to provide the
public with an opportunity to comment is unnecessary because the 2015
Act exempts the adjustments from the need for delay and, in any event,
HUD would not have the discretion to make changes as a result of any
comments.
IV. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and, therefore, subject to review by the Office of Management and
Budget (OMB) in accordance with the requirements of the order.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned. Executive Order 13563 also directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public. As discussed above in this preamble, this final
rule adjusts existing civil monetary penalties for inflation by a
statutorily required amount.
As a result of this review, OMB determined that this rule was not
significant under Executive Order 12866 and Executive Order 13563.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
Because HUD has determined that good cause exists to issue this rule
without prior public comment, this rule is not subject to the
requirement to publish an initial or final regulatory flexibility
analysis under the RFA as part of such action.
Unfunded Mandates Reform
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \4\
requires that an agency prepare a budgetary impact statement before
promulgating a rule that includes a Federal mandate that may result in
the expenditure by State, local, and tribal governments, in the
aggregate, or by the private sector, of $100 million or more in any one
year. If a budgetary impact statement is required, section 205 of UMRA
also requires an agency to identity and consider a reasonable number of
regulatory alternatives before promulgating a rule.\5\ However, the
UMRA applies only to rules for which an agency publishes a general
notice of proposed rulemaking. As discussed above, HUD has determined,
for good cause, that prior notice and public comment is not required on
this rule and, therefore, the UMRA does not apply to this final rule.
---------------------------------------------------------------------------
\4\ 2 U.S.C. 1532.
\5\ 2 U.S.C. 1534.
---------------------------------------------------------------------------
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes
[[Page 24524]]
substantial direct compliance costs on State and local governments and
is not required by statute, or the rule preempts State law, unless the
agency meets the consultation and funding requirements of section 6 of
the Executive Order. This rule will not have federalism implications
and would not impose substantial direct compliance costs on State and
local governments or preempt State law within the meaning of the
Executive order.
Environmental Review
This interim final rule does not direct, provide for assistance or
loan and mortgage insurance for, or otherwise govern, or regulate, real
property acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise, or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this
final rule is categorically excluded from environmental review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).
List of Subjects
24 CFR Part 28
Administrative practice and procedure, Claims, Fraud, Penalties.
24 CFR Part 30
Administrative practice and procedure, Grant programs--housing and
community development, Loan programs--housing and community
development, Mortgage insurance, Penalties.
24 CFR Part 87
Government contracts, Grant programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping requirements.
24 CFR Part 180
Administrative practice and procedure, Aged, Civil rights, Fair
housing, Individuals with disabilities, Investigations, Mortgages,
Penalties, Reporting and recordkeeping requirements.
24 CFR Part 3282
Administrative practice and procedure, Consumer protection,
Intergovernmental relations, Manufactured homes, Reporting and
recordkeeping requirements.
Accordingly, for the reasons described in the preamble, HUD adopts
as final the interim final rule published on June 15, 2016, at 81 FR
38931, and further amends 24 CFR parts 28, 30, 87, 180, and 3282 as
follows:
PART 28--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF
1986
0
1. The authority citation for part 28 continues to read as follows:
Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812; 42 U.S.C.
3535(d).
0
2. In Sec. 28.10, revise the introductory text of paragraphs (a)(1)
and (b)(1), to read as follows:
Sec. 28.10 Basis for civil penalties and assessments.
(a) * * *
(1) A civil penalty of not more than $10,957 may be imposed upon
any person who makes, presents, or submits, or causes to be made,
presented, or submitted, a claim that the person knows or has reason to
know:
* * * * *
(b) * * *
(1) A civil penalty of not more than $10,957 may be imposed upon
any person who makes, presents, or submits, or causes to be made,
presented, or submitted, a written statement that:
* * * * *
PART 30--CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT
0
3. The authority citation for part 30 continues to read as follows:
Authority: 12 U.S.C. 1701q-1, 1703, 1723i, 1735f-14, and 1735f-
15; 15 U.S.C. 1717a; 28 U.S.C. 1 note and 2461 note; 42 U.S.C.
1437z-1 and 3535(d).
Sec. 30.5 [Amended]
0
4. In Sec. 30.5, remove paragraph (c) and redesignate paragraphs (d),
(e), and (f) as paragraphs (c), (d), and (e), respectively.
Sec. 30.10 [Amended]
0
5. In Sec. 30.10, add at the end of the definition of ``Knowing or
Knowingly'' the sentence ``For purposes of Sec. Sec. 30.35 and 30.36,
knowing or knowingly is defined at 12 U.S.C. 1735f-14(g).''
0
6. In Sec. 30.20, revise paragraph (b) to read as follows:
Sec. 30.20 Ethical violations by HUD employees.
* * * * *
(b) Maximum penalty. The maximum penalty is $19,246 for each
violation.
0
7. In Sec. 30.25, revise paragraph (b) to read as follows:
Sec. 30.25 Violations by applicants for assistance.
* * * * *
(b) Maximum penalty. The maximum penalty is $19,246 for each
violation.
0
8. In Sec. 30.35, remove the words ``Sec. Sec. 203.650 through
203.664'' in paragraph (a)(7) and add in their place ``Sec. 203.664'';
and revise the first sentence in paragraph (c)(1) to read as follows:
Sec. 30.35 Mortgagees and lenders.
* * * * *
(c)(1) Amount of penalty. The maximum penalty is $9,623 for each
violation, up to a limit of $1,924,589 for all violations committed
during any one-year period. * * *
* * * * *
0
9. In Sec. 30.36, remove the words ``or correspondent'' in paragraph
(b)(3) and revise the first sentence in paragraph (c) to read as
follows:
Sec. 30.36 Other participants in FHA programs.
* * * * *
(c) Amount of penalty. The maximum penalty is $9,623 for each
violation, up to a limit of $1,924,589 for all violations committed
during any one-year period. * * *
0
10. In Sec. 30.40, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.40 Loan guarantees for Indian housing.
* * * * *
(c) Amount of penalty. The maximum penalty is $9,623 for each
violation, up to a limit of $1,924,589 for all violations committed
during any one-year period. * * *
0
11. In Sec. 30.45, revise paragraph (g) to read as follows:
Sec. 30.45 Multifamily and section 202 or 811 mortgagors.
* * * * *
(g) Maximum penalty. The maximum penalty for each violation under
paragraphs (c) and (f) of this section is $48,114.
* * * * *
0
12. In Sec. 30.50, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.50 GNMA issuers and custodians.
* * * * *
(c) Amount of penalty. The maximum penalty is $9,623 for each
violation, up to a limit of $1,924,589 during any one-year period. * *
*
0
13. In Sec. 30.60, revise paragraph (c) to read as follows:
Sec. 30.60 Dealers or sponsored third-party originators.
* * * * *
(c) Amount of penalty. The maximum penalty is $9,623 for each
violation, up to a limit for any particular person of $1,924,589 during
any one-year period.
0
14. In Sec. 30.65, revise paragraph (b) to read as follows:
[[Page 24525]]
Sec. 30.65 Failure to disclose lead-based paint hazards.
* * * * *
(b) Amount of penalty. The maximum penalty is $17,047 for each
violation.
0
15. In Sec. 30.68, revise paragraph (c) to read as follows:
Sec. 30.68 Section 8 owners.
* * * * *
(c) Maximum penalty. The maximum penalty for each violation under
this section is $37,396.
* * * * *
Sec. 30.80 [Amended]
0
16. In Sec. 30.80, add the word ``and'' after paragraph (h); remove
paragraph (i); and redesignate paragraphs (j), (k), and (l) as
paragraphs (i), (j), and (k), respectively.
PART 87--NEW RESTRICTIONS ON LOBBYING
0
17. The authority citation for part 87 continues to read as follows:
Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d).
0
18. In Sec. 87.400, revise paragraphs (a), (b), and (e) to read as
follows:
Sec. 87.400 Penalties.
(a) Any person who makes an expenditure prohibited herein shall be
subject to a civil penalty of not less than $19,246 and not more than
$192,459 for each such expenditure.
(b) Any person who fails to file or amend the disclosure form (see
appendix B) to be filed or amended if required herein, shall be subject
to a civil penalty of not less than $19,246 and not more than $192,459
for each such failure.
* * * * *
(e) First offenders under paragraphs (a) or (b) of this section
shall be subject to a civil penalty of $19,246, absent aggravating
circumstances. Second and subsequent offenses by persons shall be
subject to an appropriate civil penalty between $19,246 and $192,459,
as determined by the agency head or his or her designee.
* * * * *
PART 180--CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS
MATTERS
0
19. The authority citation for part 180 continues to read as follows:
Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; 42 U.S.C. 2000d-1,
3535(d), 3601-3619, 5301-5320, and 6103.
0
20. In Sec. 180.671, revise paragraphs (a)(1), (2), and (3) to read as
follows:
Sec. 180.671 Assessing civil penalties for Fair Housing Act cases.
(a) * * *
(1) $20,111, if the respondent has not been adjudged in any
administrative hearing or civil action permitted under the Fair Housing
Act or any state or local fair housing law, or in any licensing or
regulatory proceeding conducted by a federal, state, or local
governmental agency, to have committed any prior discriminatory housing
practice.
(2) $50,276, if the respondent has been adjudged in any
administrative hearing or civil action permitted under the Fair Housing
Act, or under any state or local fair housing law, or in any licensing
or regulatory proceeding conducted by a federal, state, or local
government agency, to have committed one other discriminatory housing
practice and the adjudication was made during the 5-year period
preceding the date of filing of the charge.
(3) $100,554, if the respondent has been adjudged in any
administrative hearings or civil actions permitted under the Fair
Housing Act, or under any state or local fair housing law, or in any
licensing or regulatory proceeding conducted by a federal, state, or
local government agency, to have committed two or more discriminatory
housing practices and the adjudications were made during the 7-year
period preceding the date of filing of the charge.
* * * * *
PART 3282--MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS
0
21. The authority citation for part 3282 continues to read as follows:
Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461 note; 42 U.S.C.
3535(d) and 5424.
0
22. Revise Sec. 3282.10 to read as follows:
Sec. 3282.10 Civil and criminal penalties.
Failure to comply with these regulations may subject the party in
question to the civil and criminal penalties provided for in section
611 of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed
under section 611 of the Act shall be $2,795 for each violation, up to
a maximum of $3,493,738 for any related series of violations occurring
within one year from the date of the first violation.
Dated: May 22, 2017.
Bethany A. Zorc,
Principal Deputy General Counsel.
[FR Doc. 2017-11056 Filed 5-26-17; 8:45 am]
BILLING CODE 4210-67-P
