Civil Monetary Penalties Annual Inflation Adjustments, 61140-61143 [2017-27808]
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61140
Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Rules and Regulations
Signed in Washington, DC, on December
19, 2017.
Heather Manzano,
Acting Manager, Federal Crop Insurance
Corporation.
[FR Doc. 2017–27894 Filed 12–26–17; 8:45 am]
BILLING CODE 3410–08–P
FEDERAL ELECTION COMMISSION
11 CFR Part 111
[Notice 2017–18]
Civil Monetary Penalties Annual
Inflation Adjustments
Federal Election Commission.
Final rule.
AGENCY:
ACTION:
As required by the Federal
Civil Penalties Inflation Adjustment Act
of 1990, the Federal Election
Commission is adjusting for inflation
the civil monetary penalties established
under the Federal Election Campaign
Act, the Presidential Election Campaign
Fund Act, and the Presidential Primary
Matching Payment Account Act. The
civil monetary penalties being adjusted
are those negotiated by the Commission
or imposed by a court for certain
statutory violations, and those imposed
by the Commission for late filing of or
failure to file certain reports required by
the Federal Election Campaign Act. The
adjusted civil monetary penalties are
calculated according to a statutory
formula and the adjusted amounts will
apply to penalties assessed after the
effective date of these rules.
DATES: This final rule is effective on
December 27, 2017.
FOR FURTHER INFORMATION CONTACT: Mr.
Neven F. Stipanovic, Acting Assistant
General Counsel, or Mr. Eugene J.
Lynch, Paralegal, Office of General
Counsel, (202) 694–1650 or (800) 424–
9530.
SUPPLEMENTARY INFORMATION: The
Federal Civil Penalties Inflation
Adjustment Act of 1990 (the ‘‘Inflation
Adjustment Act’’),1 as amended by the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the ‘‘2015 Act’’),2 requires federal
agencies, including the Commission, to
adjust for inflation the civil monetary
penalties within their jurisdiction
according to prescribed formulas. A
civil monetary penalty is ‘‘any penalty,
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SUMMARY:
1 Public Law 101–410, 104 Stat. 890 (codified at
28 U.S.C. 2461 note), amended by Debt Collection
Improvement Act of 1996, Public Law 104–134, sec.
31001(s)(1), 110 Stat. 1321, 1321–373; Federal
Reports Elimination Act of 1998, Public Law 105–
362, sec. 1301, 112 Stat. 3280.
2 Public Law 114–74, 701, 129 Stat. 584, 599.
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fine, or other sanction’’ that (1) ‘‘is for
a specific monetary amount’’ or ‘‘has a
maximum amount’’ under federal law;
and (2) that a federal agency assesses or
enforces ‘‘pursuant to an administrative
proceeding or a civil action’’ in federal
court.3 Under the Federal Election
Campaign Act, 52 U.S.C. 30101–46
(‘‘FECA’’), the Commission may seek
and assess civil monetary penalties for
violations of FECA, the Presidential
Election Campaign Fund Act, 26 U.S.C.
9001–13, and the Presidential Primary
Matching Payment Account Act, 26
U.S.C. 9031–42.
The Inflation Adjustment Act requires
federal agencies to adjust their civil
penalties annually, and the adjustments
must take effect no later than January 15
of every year.4 Pursuant to guidance
issued by the Office of Management and
Budget,5 the Commission is now
adjusting its civil monetary penalties for
2018.6
The Commission must adjust for
inflation its civil monetary penalties
‘‘notwithstanding Section 553’’ of the
Administrative Procedures Act
(‘‘APA’’).7 Thus, the APA’s notice-andcomment and delayed effective date
requirements in 5 U.S.C. 553(b)–(d) do
not apply because Congress has
specifically exempted agencies from
these requirements.8
Furthermore, because the inflation
adjustments made through these final
rules are required by Congress and
involve no Commission discretion or
policy judgments, these rules do not
need to be submitted to the Speaker of
the House of Representatives or the
President of the Senate under the
Congressional Review Act, 5 U.S.C. 801
et seq. Moreover, because the APA’s
notice-and-comment procedures do not
apply to these final rules, the
Commission is not required to conduct
a regulatory flexibility analysis under 5
U.S.C. 603 or 604. See 5 U.S.C. 601(2),
604(a). Nor is the Commission required
to submit these revisions for
congressional review under FECA. See 5
U.S.C. 30111(d)(1), (4) (providing for
3 Inflation
Adjustment Act § 3(2).
Adjustment Act § 4(a).
5 See Inflation Adjustment Act § 7(a) (requiring
OMB to ‘‘issue guidance to agencies on
implementing the inflation adjustments required
under this Act’’); see also Memorandum from Mick
Mulvaney, Director, Office of Management and
Budget, to Heads of Executive Departments and
Agencies, M–18–03 (Dec. 15, 2017), https://
www.whitehouse.gov/wp-content/uploads/2017/11/
M-18-03.pdf (‘‘OMB Memorandum’’).
6 Inflation Adjustment Act § 5.
7 Inflation Adjustment Act § 4(b)(2).
8 See, e.g., Asiana Airlines v. FAA, 134 F.3d 393,
396–99 (D.C. Cir. 1998) (finding APA ‘‘notice and
comment’’ requirement not applicable where
Congress clearly expressed intent to depart from
normal APA procedures).
4 Inflation
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congressional review when Commission
‘‘prescribe[s]’’ a ‘‘rule of law’’).
The new penalty amounts will apply
to civil monetary penalties that are
assessed after the date the increase takes
effect, even if the associated violation
predated the increase.9
Explanation and Justification
The Inflation Adjustment Act requires
the Commission to annually adjust its
civil monetary penalties for inflation by
applying a cost-of-living-adjustment
(‘‘COLA’’) ratio.10 The COLA ratio is the
percentage that the Consumer Price
Index (‘‘CPI’’) 11 ‘‘for the month of
October preceding the date of the
adjustment’’ exceeds the CPI for October
of the previous year.12 To calculate the
adjusted penalty, the Commission must
increase the most recent civil monetary
penalty amount by the COLA ratio.13
According to the Office of Management
and Budget, the COLA ratio for 2018 is
0.02041, or 2.041%; thus, to calculate
the new penalties, the Commission must
multiply the most recent civil monetary
penalties in force by 1.02041.14
The Commission assesses two types of
civil monetary penalties that must be
adjusted for inflation. First are penalties
that are either negotiated by the
Commission or imposed by a court for
violations of FECA, the Presidential
Election Campaign Fund Act, or the
Presidential Primary Matching Payment
Account Act. These civil monetary
penalties are set forth at 11 CFR 111.24.
Second are the civil monetary penalties
assessed through the Commission’s
Administrative Fines Program for late
filing or non-filing of certain reports
required by FECA. See 52 U.S.C.
30109(a)(4)(C) (authorizing
Administrative Fines Program), 30104(a)
(requiring political committee treasurers
to report receipts and disbursements
within certain time periods). The
penalty schedules for these civil
monetary penalties are set out at 11 CFR
111.43 and 111.44.
1. 11 CFR 111.24—Civil Penalties
FECA establishes the civil monetary
penalties for violations of FECA and the
other statutes within the Commission’s
jurisdiction. See 52 U.S.C. 30109(a)(5),
(6), (12). Commission regulations in 11
9 Inflation
Adjustment Act § 6.
COLA ratio must be applied to the most
recent civil monetary penalties. Inflation
Adjustment Act, § 4(a); see also OMB Memorandum
at 2.
11 The Inflation Adjustment Act, sec. 3, uses the
CPI ‘‘for all-urban consumers published by the
Department of Labor.’’
12 Inflation Adjustment Act, § 5(b)(1).
13 Inflation Adjustment Act, § 5(a), (b)(1).
14 OMB Memorandum at 1.
10 The
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Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Rules and Regulations
CFR 111.24 provide the current
inflation-adjusted amount for each such
civil monetary penalty. To calculate the
adjusted civil monetary penalty, the
Commission multiplies the most recent
penalty amount by the COLA ratio and
rounds that figure to the nearest dollar.
Most recent
civil
penalty
Section
11
11
11
11
11
CFR
CFR
CFR
CFR
CFR
The actual adjustment to each civil
monetary penalty is shown in the chart
below.
111.24(a)(1) ...................................................................................................................
111.24(a)(2)(i) ................................................................................................................
111.24(a)(2)(ii) ...............................................................................................................
111.24(b) ........................................................................................................................
111.24(b) ........................................................................................................................
2. 11 CFR 111.43, 111.44—
Administrative Fines
FECA authorizes the Commission to
assess civil monetary penalties for
violations of the reporting requirements
of 52 U.S.C. 30104(a) according to the
penalty schedules ‘‘established and
published by the Commission.’’ 52
U.S.C. 30109(a)(4)(C)(i). The
Commission has established two such
schedules: The schedule in 11 CFR
111.43(a) applies to reports that are not
election sensitive, and the schedule in
11 CFR 111.43(b) applies to reports that
are election sensitive.15 Each schedule
contains two columns of penalties, one
for late-filed reports and one for nonfiled reports, with penalties based on
the level of financial activity in the
report and, if late-filed, its lateness.16 In
addition, 11 CFR 111.43(c) establishes a
civil monetary penalty for situations in
which a committee fails to file a report
and the Commission cannot calculate
the relevant level of activity. Finally, 11
CFR 111.44 establishes a civil monetary
penalty for failure to file timely reports
of contributions received less than 20
days, but more than 48 hours, before an
election. See 52 U.S.C. 30104(a)(6).
To determine the adjusted civil
monetary penalty amount for each level
of activity, the Commission multiplies
the most recent penalty amount by the
COLA ratio and rounds that figure to the
nearest dollar. The new civil monetary
penalties are shown in the schedules in
the rule text, below.
List of Subjects in 11 CFR Part 111
Administrative practice and
procedures, Elections, Law enforcement,
Penalties.
For the reasons set out in the
preamble, the Federal Election
COLA
$19,057
40,654
66,666
5,701
14,252
1. The authority citation for part 111
continues to read as follows:
■
Authority: 52 U.S.C. 30102(i), 30109,
30107(a), 30111(a)(8); 28 U.S.C. 2461 nt.
§ 111.24
[Amended]
2. Section 111.24 is amended as
follows:
In the table below, for each section
indicated in the left column, remove the
number indicated in the middle
column, and add in its place the number
indicated in the right column.
■
Remove
§ 111.43 What are the schedules of
penalties?
(a) The civil money penalty for all
reports that are filed late or not filed,
$19,446
41,484
68,027
5,817
14,543
PART 111—COMPLIANCE
PROCEDURE (52 U.S.C. 30109,
30107(a))
111.24(a)(1) .............................................................................................................................................................
111.24(a)(2)(i) ..........................................................................................................................................................
111.24(a)(2)(ii) .........................................................................................................................................................
111.24(b) ..................................................................................................................................................................
111.24(b) ..................................................................................................................................................................
3. Section 111.43 is amended by
revising paragraphs (a), (b), and (c) to
read as follows:
1.02041
1.02041
1.02041
1.02041
1.02041
Commission amends subchapter A of
chapter I of title 11 of the Code of
Federal Regulations as follows:
Section
■
New civil
penalty
$19,057
40,654
66,666
5,701
14,252
Add
$19,446
41,484
68,027
5,817
14,543
except election sensitive reports and
pre-election reports under 11 CFR 104.5,
shall be calculated in accordance with
the following schedule of penalties:
If the level of activity in
the report was:
And the report was filed late, the civil money penalty is:
Or the report was not filed, the civil money
penalty is:
$1–4,999.99 a ..................
[$34 + ($6 × Number of days late)] × [1 + (.25 × Number of previous
violations)].
[$66 + ($6 × Number of days late)] × [1 + (.25 × Number of previous
violations)].
[$142 + ($6 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$283 + ($27 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$426 + ($107 × Number of days late)] × [1 + (.25 × Number of previous violations)].
$333 × [1 + (.25 × Number of previous
tions)].
$400 × [1 + (.25 × Number of previous
tions)].
$667 × [1 + (.25 × Number of previous
tions)].
$1200 × [1 + (.25 × Number of previous
tions)].
$3828 × [1 + (.25 × Number of previous
tions)].
$5,000–9,999.99 ..............
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$10,000–24,999.99 ..........
$25,000–49,999.99 ..........
$50,000–74,999.99 ..........
15 Election sensitive reports are certain reports
due shortly before an election. See 11 CFR
111.43(d)(1).
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16 A report is considered to be ‘‘not filed’’ if it is
never filed or is filed more than a certain number
of days after its due date. See 11 CFR 111.43(e).
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Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Rules and Regulations
If the level of activity in
the report was:
And the report was filed late, the civil money penalty is:
Or the report was not filed, the civil money
penalty is:
$75,000–99,999.99 ..........
[$567 + ($142 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$850 + ($178 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$1135 + ($212 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$1417 + ($248 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$2127 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$2836 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$3544 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$4253 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$4961 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$5670 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$6380 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$7088 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
$4961 × [1 + (.25 × Number of previous violations)].
$6380 × [1 + (.25 × Number of previous violations)].
$7797 × [1 + (.25 × Number of previous violations)].
$9214 × [1 + (.25 × Number of previous violations)].
$11,341 × [1 + (.25 × Number of previous
violations)].
$12,758 × [1 + (.25 × Number of previous
violations)].
$13,466 × [1 + (.25 × Number of previous
violations)].
$14,177 × [1 + (.25 × Number of previous
violations)].
$14,885 × [1 + (.25 × Number of previous
violations)].
$15,594 × [1 + (.25 × Number of previous
violations)].
$16,302 × [1 + (.25 × Number of previous
violations)].
$17,011 × [1 + (.25 × Number of previous
violations)].
$100,000–149,999.99 ......
$150,000–199,999.99 ......
$200,000–249,999.99 ......
$250,000–349,999.99 ......
$350,000–449,999.99 ......
$450,000–549,999.99 ......
$550,000–649,999.99 ......
$650,000–749,999.99 ......
$750,000–849,999.99 ......
$850,000–949,999.99 ......
$950,000 or over .............
a The
civil money penalty for a respondent who does not have any previous violations will not exceed the level of activity in the report.
(b) The civil money penalty for
election sensitive reports that are filed
late or not filed shall be calculated in
accordance with the following schedule
of penalties:
If the level of activity in
the report was:
And the report was filed late, the civil money penalty is:
Or the report was not filed, the civil money
penalty is:
$1–$4,999.99 a ................
[$66 + ($13 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$134 + ($13 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$200 + ($13 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$426 + ($34 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$638 + ($107 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$850 + ($142 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$1276 + ($178 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$1701 + ($212 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$2127 + ($248 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$3190 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$4253 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$5316 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$6380 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$7442 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$8505 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$9569 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
[$10,633 + ($283 × Number of days late)] × [1 + (.25 × Number of
previous violations)].
$667 × [1 + (.25 × Number of previous violations)].
$800 × [1 + (.25 × Number of previous violations)].
$1200 × [1 + (.25 × Number of previous violations)].
$1866 × [1 + (.25 × Number of previous violations)].
$4253 × [1 + (.25 × Number of previous violations)].
$5670 × [1 + (.25 × Number of previous violations)].
$7088 × [1 + (.25 × Number of previous violations)].
$8505 × [1 + (.25 × Number of previous violations)].
$10,633 × [1 + (.25 × Number of previous
violations)].
$12,758 × [1 + (.25 × Number of previous
violations)].
$14,177 × [1 + (.25 × Number of previous
violations)].
$15,594 × [1 + (.25 × Number of previous
violations)].
$17,011 × [1 + (.25 × Number of previous
violations)].
$18,430 × [1 + (.25 × Number of previous
violations)].
$19,846 × [1 + (.25 × Number of previous
violations)].
$21,263 × [1 + (.25 × Number of previous
violations)].
$22,682 × [1 + (.25 × Number of previous
violations)].
$5,000–$9,999.99 ............
$10,000–24,999.99 ..........
$25,000–49,999.99 ..........
$50,000–74,999.99 ..........
$75,000–99,999.99 ..........
$100,000–149,999.99 ......
$150,000–199,999.99 ......
$200,000–249,999.99 ......
$250,000–349,999.99 ......
$350,000–449,999.99 ......
$450,000–549,999.99 ......
$550,000–649,999.99 ......
$650,000–749,999.99 ......
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$750,000–849,999.99 ......
$850,000–949,999.99 ......
$950,000 or over .............
a The
civil money penalty for a respondent who does not have any previous violations will not exceed the level of activity in the report.
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Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Rules and Regulations
(c) If the respondent fails to file a
required report and the Commission
cannot calculate the level of activity
under paragraph (d) of this section, then
the civil money penalty shall be $7,797.
*
*
*
*
*
§ 111.44
[Amended]
4. In § 111.44, amend paragraph (a)(1)
by removing ‘‘$139’’ and adding in its
place ‘‘$142’’.
■
Dated: December 19, 2017.
On behalf of the Commission.
Steven T. Walther,
Chairman, Federal Election Commission.
[FR Doc. 2017–27808 Filed 12–26–17; 8:45 am]
BILLING CODE 6715–01–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 25 and 195
[Docket ID OCC–2017–0025]
RIN 1557–AE30
FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Regulation BB; Docket No. R–1574]
RIN 7100–AE84
Background and Description of the
Joint Final Rule
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 345
RIN 3064–AE58
Community Reinvestment Act
Regulations
Office of the Comptroller of the
Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Joint final rule; technical
amendment.
AGENCY:
The OCC, the Board, and the
FDIC (collectively, the Agencies) are
amending their Community
Reinvestment Act (CRA) regulations to
adjust the asset-size thresholds used to
define ‘‘small bank’’ or ‘‘small savings
association’’ and ‘‘intermediate small
bank’’ or ‘‘intermediate small savings
association.’’ As required by the CRA
regulations, the adjustment to the
threshold amount is based on the
annual percentage change in the
Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI–W).
The FDIC is also amending its definition
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SUMMARY:
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of ‘‘consumer loan’’ to correct a
typographical error included in a CRA
final rule issued on November 24, 2017.
DATES: Effective Date: January 1, 2018.
FOR FURTHER INFORMATION CONTACT:
OCC: Emily Boyes, Attorney,
Community and Consumer Law
Division, (202) 649–6350; Christopher
Rafferty, Law Clerk, Legislative and
Regulatory Activities Division, (202)
649–5490; for persons who are deaf or
hearing impaired, TTY, (202) 649–5597;
or Vonda Eanes, Director, Compliance
Risk Policy Division, (202) 649–5470,
Office of the Comptroller of the
Currency, 400 7th Street SW,
Washington, DC 20219.
Board: Amal S. Patel, Senior
Supervisory Consumer Financial
Services Analyst, (202) 912–7879; or
Cathy Gates, Senior Project Manager,
(202) 452–2099, Division of Consumer
and Community Affairs, Board of
Governors of the Federal Reserve
System, 20th Street and Constitution
Avenue NW, Washington, DC 20551.
FDIC: Patience R. Singleton, Senior
Policy Analyst, Supervisory Policy
Branch, Division of Depositor and
Consumer Protection, (202) 898–6859;
or Richard M. Schwartz, Counsel, Legal
Division, (202) 898–7424, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
The Agencies’ CRA regulations
establish CRA performance standards
for small and intermediate small banks
and savings associations. The CRA
regulations define small and
intermediate small banks and savings
associations by reference to asset-size
criteria expressed in dollar amounts,
and they further require the Agencies to
publish annual adjustments to these
dollar figures based on the year-to-year
change in the average of the CPI–W, not
seasonally adjusted, for each 12-month
period ending in November, with
rounding to the nearest million. 12 CFR
25.12(u)(2), 195.12(u)(2), 228.12(u)(2),
and 345.12(u)(2). This adjustment
formula was first adopted for CRA
purposes by the OCC, the Board, and the
FDIC on August 2, 2005, effective
September 1, 2005. 70 FR 44256 (Aug.
2, 2005). The Agencies noted that the
CPI–W is also used in connection with
other federal laws, such as the Home
Mortgage Disclosure Act. See 12 U.S.C.
2808; 12 CFR 1003.2. On March 22,
2007, and effective July 1, 2007, the
former Office of Thrift Supervision
(OTS), the agency then responsible for
regulating savings associations, adopted
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61143
an annual adjustment formula
consistent with that of the other federal
banking agencies in its CRA rule
previously set forth at 12 CFR part 563e.
72 FR 13429 (Mar. 22, 2007).
Pursuant to the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (Dodd-Frank Act),1 effective July 21,
2011, CRA rulemaking authority for
federal and state savings associations
was transferred from the OTS to the
OCC, and the OCC subsequently
republished, at 12 CFR part 195, the
CRA regulations applicable to those
institutions.2 In addition, the DoddFrank Act transferred responsibility for
supervision of savings and loan holding
companies and their non-depository
subsidiaries from the OTS to the Board,
and the Board subsequently amended its
CRA regulation to reflect this transfer of
supervisory authority.3
The threshold for small banks and
small savings associations was revised
most recently in December 2016 and
became effective January 18, 2017. 82
FR 5354 (Jan. 18, 2017). The current
CRA regulations provide that banks and
savings associations that, as of
December 31 of either of the prior two
calendar years, had assets of less than
$1.226 billion are small banks or small
savings associations. Small banks and
small savings associations with assets of
at least $307 million as of December 31
of both of the prior two calendar years
and less than $1.226 billion as of
December 31 of either of the prior two
calendar years are intermediate small
banks or intermediate small savings
associations. 12 CFR 25.12(u)(1),
195.12(u)(1), 228.12(u)(1), and
345.12(u)(1). This joint final rule revises
these thresholds.
During the 12-month period ending
November 2017, the CPI–W increased
by 2.11 percent. As a result, the
Agencies are revising 12 CFR
25.12(u)(1), 195.12(u)(1), 228.12(u)(1),
and 345.12(u)(1) to make this annual
adjustment. Beginning January 1, 2018,
banks and savings associations that, as
of December 31 of either of the prior two
calendar years, had assets of less than
$1.252 billion are small banks or small
savings associations. Small banks and
small savings associations with assets of
at least $313 million as of December 31
of both of the prior two calendar years
and less than $1.252 billion as of
December 31 of either of the prior two
calendar years are intermediate small
banks or intermediate small savings
1 Public
Law 111–203, 124 Stat. 1376 (2010).
OCC interim final rule, 76 FR 48950 (Aug.
9, 2011).
3 See Board interim final rule, 76 FR 56508 (Sept.
13, 2011).
2 See
E:\FR\FM\27DER1.SGM
27DER1
]]>Agencies
[Federal Register Volume 82, Number 247 (Wednesday, December 27, 2017)]
[Rules and Regulations]
[Pages 61140-61143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27808]
=======================================================================
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FEDERAL ELECTION COMMISSION
11 CFR Part 111
[Notice 2017-18]
Civil Monetary Penalties Annual Inflation Adjustments
AGENCY: Federal Election Commission.
ACTION: Final rule.
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SUMMARY: As required by the Federal Civil Penalties Inflation
Adjustment Act of 1990, the Federal Election Commission is adjusting
for inflation the civil monetary penalties established under the
Federal Election Campaign Act, the Presidential Election Campaign Fund
Act, and the Presidential Primary Matching Payment Account Act. The
civil monetary penalties being adjusted are those negotiated by the
Commission or imposed by a court for certain statutory violations, and
those imposed by the Commission for late filing of or failure to file
certain reports required by the Federal Election Campaign Act. The
adjusted civil monetary penalties are calculated according to a
statutory formula and the adjusted amounts will apply to penalties
assessed after the effective date of these rules.
DATES: This final rule is effective on December 27, 2017.
FOR FURTHER INFORMATION CONTACT: Mr. Neven F. Stipanovic, Acting
Assistant General Counsel, or Mr. Eugene J. Lynch, Paralegal, Office of
General Counsel, (202) 694-1650 or (800) 424-9530.
SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation
Adjustment Act of 1990 (the ``Inflation Adjustment Act''),\1\ as
amended by the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (the ``2015 Act''),\2\ requires federal
agencies, including the Commission, to adjust for inflation the civil
monetary penalties within their jurisdiction according to prescribed
formulas. A civil monetary penalty is ``any penalty, fine, or other
sanction'' that (1) ``is for a specific monetary amount'' or ``has a
maximum amount'' under federal law; and (2) that a federal agency
assesses or enforces ``pursuant to an administrative proceeding or a
civil action'' in federal court.\3\ Under the Federal Election Campaign
Act, 52 U.S.C. 30101-46 (``FECA''), the Commission may seek and assess
civil monetary penalties for violations of FECA, the Presidential
Election Campaign Fund Act, 26 U.S.C. 9001-13, and the Presidential
Primary Matching Payment Account Act, 26 U.S.C. 9031-42.
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\1\ Public Law 101-410, 104 Stat. 890 (codified at 28 U.S.C.
2461 note), amended by Debt Collection Improvement Act of 1996,
Public Law 104-134, sec. 31001(s)(1), 110 Stat. 1321, 1321-373;
Federal Reports Elimination Act of 1998, Public Law 105-362, sec.
1301, 112 Stat. 3280.
\2\ Public Law 114-74, 701, 129 Stat. 584, 599.
\3\ Inflation Adjustment Act Sec. 3(2).
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The Inflation Adjustment Act requires federal agencies to adjust
their civil penalties annually, and the adjustments must take effect no
later than January 15 of every year.\4\ Pursuant to guidance issued by
the Office of Management and Budget,\5\ the Commission is now adjusting
its civil monetary penalties for 2018.\6\
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\4\ Inflation Adjustment Act Sec. 4(a).
\5\ See Inflation Adjustment Act Sec. 7(a) (requiring OMB to
``issue guidance to agencies on implementing the inflation
adjustments required under this Act''); see also Memorandum from
Mick Mulvaney, Director, Office of Management and Budget, to Heads
of Executive Departments and Agencies, M-18-03 (Dec. 15, 2017),
https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf
(``OMB Memorandum'').
\6\ Inflation Adjustment Act Sec. 5.
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The Commission must adjust for inflation its civil monetary
penalties ``notwithstanding Section 553'' of the Administrative
Procedures Act (``APA'').\7\ Thus, the APA's notice-and-comment and
delayed effective date requirements in 5 U.S.C. 553(b)-(d) do not apply
because Congress has specifically exempted agencies from these
requirements.\8\
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\7\ Inflation Adjustment Act Sec. 4(b)(2).
\8\ See, e.g., Asiana Airlines v. FAA, 134 F.3d 393, 396-99
(D.C. Cir. 1998) (finding APA ``notice and comment'' requirement not
applicable where Congress clearly expressed intent to depart from
normal APA procedures).
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Furthermore, because the inflation adjustments made through these
final rules are required by Congress and involve no Commission
discretion or policy judgments, these rules do not need to be submitted
to the Speaker of the House of Representatives or the President of the
Senate under the Congressional Review Act, 5 U.S.C. 801 et seq.
Moreover, because the APA's notice-and-comment procedures do not apply
to these final rules, the Commission is not required to conduct a
regulatory flexibility analysis under 5 U.S.C. 603 or 604. See 5 U.S.C.
601(2), 604(a). Nor is the Commission required to submit these
revisions for congressional review under FECA. See 5 U.S.C.
30111(d)(1), (4) (providing for congressional review when Commission
``prescribe[s]'' a ``rule of law'').
The new penalty amounts will apply to civil monetary penalties that
are assessed after the date the increase takes effect, even if the
associated violation predated the increase.\9\
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\9\ Inflation Adjustment Act Sec. 6.
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Explanation and Justification
The Inflation Adjustment Act requires the Commission to annually
adjust its civil monetary penalties for inflation by applying a cost-
of-living-adjustment (``COLA'') ratio.\10\ The COLA ratio is the
percentage that the Consumer Price Index (``CPI'') \11\ ``for the month
of October preceding the date of the adjustment'' exceeds the CPI for
October of the previous year.\12\ To calculate the adjusted penalty,
the Commission must increase the most recent civil monetary penalty
amount by the COLA ratio.\13\ According to the Office of Management and
Budget, the COLA ratio for 2018 is 0.02041, or 2.041%; thus, to
calculate the new penalties, the Commission must multiply the most
recent civil monetary penalties in force by 1.02041.\14\
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\10\ The COLA ratio must be applied to the most recent civil
monetary penalties. Inflation Adjustment Act, Sec. 4(a); see also
OMB Memorandum at 2.
\11\ The Inflation Adjustment Act, sec. 3, uses the CPI ``for
all-urban consumers published by the Department of Labor.''
\12\ Inflation Adjustment Act, Sec. 5(b)(1).
\13\ Inflation Adjustment Act, Sec. 5(a), (b)(1).
\14\ OMB Memorandum at 1.
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The Commission assesses two types of civil monetary penalties that
must be adjusted for inflation. First are penalties that are either
negotiated by the Commission or imposed by a court for violations of
FECA, the Presidential Election Campaign Fund Act, or the Presidential
Primary Matching Payment Account Act. These civil monetary penalties
are set forth at 11 CFR 111.24. Second are the civil monetary penalties
assessed through the Commission's Administrative Fines Program for late
filing or non-filing of certain reports required by FECA. See 52 U.S.C.
30109(a)(4)(C) (authorizing Administrative Fines Program), 30104(a)
(requiring political committee treasurers to report receipts and
disbursements within certain time periods). The penalty schedules for
these civil monetary penalties are set out at 11 CFR 111.43 and 111.44.
1. 11 CFR 111.24--Civil Penalties
FECA establishes the civil monetary penalties for violations of
FECA and the other statutes within the Commission's jurisdiction. See
52 U.S.C. 30109(a)(5), (6), (12). Commission regulations in 11
[[Page 61141]]
CFR 111.24 provide the current inflation-adjusted amount for each such
civil monetary penalty. To calculate the adjusted civil monetary
penalty, the Commission multiplies the most recent penalty amount by
the COLA ratio and rounds that figure to the nearest dollar.
The actual adjustment to each civil monetary penalty is shown in
the chart below.
----------------------------------------------------------------------------------------------------------------
Most recent New civil
Section civil penalty COLA penalty
----------------------------------------------------------------------------------------------------------------
11 CFR 111.24(a)(1)............................................. $19,057 1.02041 $19,446
11 CFR 111.24(a)(2)(i).......................................... 40,654 1.02041 41,484
11 CFR 111.24(a)(2)(ii)......................................... 66,666 1.02041 68,027
11 CFR 111.24(b)................................................ 5,701 1.02041 5,817
11 CFR 111.24(b)................................................ 14,252 1.02041 14,543
----------------------------------------------------------------------------------------------------------------
2. 11 CFR 111.43, 111.44--Administrative Fines
FECA authorizes the Commission to assess civil monetary penalties
for violations of the reporting requirements of 52 U.S.C. 30104(a)
according to the penalty schedules ``established and published by the
Commission.'' 52 U.S.C. 30109(a)(4)(C)(i). The Commission has
established two such schedules: The schedule in 11 CFR 111.43(a)
applies to reports that are not election sensitive, and the schedule in
11 CFR 111.43(b) applies to reports that are election sensitive.\15\
Each schedule contains two columns of penalties, one for late-filed
reports and one for non-filed reports, with penalties based on the
level of financial activity in the report and, if late-filed, its
lateness.\16\ In addition, 11 CFR 111.43(c) establishes a civil
monetary penalty for situations in which a committee fails to file a
report and the Commission cannot calculate the relevant level of
activity. Finally, 11 CFR 111.44 establishes a civil monetary penalty
for failure to file timely reports of contributions received less than
20 days, but more than 48 hours, before an election. See 52 U.S.C.
30104(a)(6).
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\15\ Election sensitive reports are certain reports due shortly
before an election. See 11 CFR 111.43(d)(1).
\16\ A report is considered to be ``not filed'' if it is never
filed or is filed more than a certain number of days after its due
date. See 11 CFR 111.43(e).
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To determine the adjusted civil monetary penalty amount for each
level of activity, the Commission multiplies the most recent penalty
amount by the COLA ratio and rounds that figure to the nearest dollar.
The new civil monetary penalties are shown in the schedules in the rule
text, below.
List of Subjects in 11 CFR Part 111
Administrative practice and procedures, Elections, Law enforcement,
Penalties.
For the reasons set out in the preamble, the Federal Election
Commission amends subchapter A of chapter I of title 11 of the Code of
Federal Regulations as follows:
PART 111--COMPLIANCE PROCEDURE (52 U.S.C. 30109, 30107(a))
0
1. The authority citation for part 111 continues to read as follows:
Authority: 52 U.S.C. 30102(i), 30109, 30107(a), 30111(a)(8); 28
U.S.C. 2461 nt.
Sec. 111.24 [Amended]
0
2. Section 111.24 is amended as follows:
In the table below, for each section indicated in the left column,
remove the number indicated in the middle column, and add in its place
the number indicated in the right column.
------------------------------------------------------------------------
Section Remove Add
------------------------------------------------------------------------
111.24(a)(1)............................ $19,057 $19,446
111.24(a)(2)(i)......................... 40,654 41,484
111.24(a)(2)(ii)........................ 66,666 68,027
111.24(b)............................... 5,701 5,817
111.24(b)............................... 14,252 14,543
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0
3. Section 111.43 is amended by revising paragraphs (a), (b), and (c)
to read as follows:
Sec. 111.43 What are the schedules of penalties?
(a) The civil money penalty for all reports that are filed late or
not filed, except election sensitive reports and pre-election reports
under 11 CFR 104.5, shall be calculated in accordance with the
following schedule of penalties:
----------------------------------------------------------------------------------------------------------------
If the level of activity in the report And the report was filed late, the Or the report was not filed,
was: civil money penalty is: the civil money penalty is:
----------------------------------------------------------------------------------------------------------------
$1-4,999.99 \a\......................... [$34 + ($6 x Number of days late)] x [1 $333 x [1 + (.25 x Number of
+ (.25 x Number of previous previous violations)].
violations)].
$5,000-9,999.99......................... [$66 + ($6 x Number of days late)] x [1 $400 x [1 + (.25 x Number of
+ (.25 x Number of previous previous violations)].
violations)].
$10,000-24,999.99....................... [$142 + ($6 x Number of days late)] x $667 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
$25,000-49,999.99....................... [$283 + ($27 x Number of days late)] x $1200 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
$50,000-74,999.99....................... [$426 + ($107 x Number of days late)] x $3828 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
[[Page 61142]]
$75,000-99,999.99....................... [$567 + ($142 x Number of days late)] x $4961 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
$100,000-149,999.99..................... [$850 + ($178 x Number of days late)] x $6380 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
$150,000-199,999.99..................... [$1135 + ($212 x Number of days late)] $7797 x [1 + (.25 x Number of
x [1 + (.25 x Number of previous previous violations)].
violations)].
$200,000-249,999.99..................... [$1417 + ($248 x Number of days late)] $9214 x [1 + (.25 x Number of
x [1 + (.25 x Number of previous previous violations)].
violations)].
$250,000-349,999.99..................... [$2127 + ($283 x Number of days late)] $11,341 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$350,000-449,999.99..................... [$2836 + ($283 x Number of days late)] $12,758 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$450,000-549,999.99..................... [$3544 + ($283 x Number of days late)] $13,466 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$550,000-649,999.99..................... [$4253 + ($283 x Number of days late)] $14,177 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$650,000-749,999.99..................... [$4961 + ($283 x Number of days late)] $14,885 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$750,000-849,999.99..................... [$5670 + ($283 x Number of days late)] $15,594 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$850,000-949,999.99..................... [$6380 + ($283 x Number of days late)] $16,302 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$950,000 or over........................ [$7088 + ($283 x Number of days late)] $17,011 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
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\a\ The civil money penalty for a respondent who does not have any previous violations will not exceed the level
of activity in the report.
(b) The civil money penalty for election sensitive reports that are
filed late or not filed shall be calculated in accordance with the
following schedule of penalties:
----------------------------------------------------------------------------------------------------------------
If the level of activity in the report And the report was filed late, the Or the report was not filed,
was: civil money penalty is: the civil money penalty is:
----------------------------------------------------------------------------------------------------------------
$1-$4,999.99 \a\........................ [$66 + ($13 x Number of days late)] x $667 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
$5,000-$9,999.99........................ [$134 + ($13 x Number of days late)] x $800 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
$10,000-24,999.99....................... [$200 + ($13 x Number of days late)] x $1200 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
$25,000-49,999.99....................... [$426 + ($34 x Number of days late)] x $1866 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
$50,000-74,999.99....................... [$638 + ($107 x Number of days late)] x $4253 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
$75,000-99,999.99....................... [$850 + ($142 x Number of days late)] x $5670 x [1 + (.25 x Number of
[1 + (.25 x Number of previous previous violations)].
violations)].
$100,000-149,999.99..................... [$1276 + ($178 x Number of days late)] $7088 x [1 + (.25 x Number of
x [1 + (.25 x Number of previous previous violations)].
violations)].
$150,000-199,999.99..................... [$1701 + ($212 x Number of days late)] $8505 x [1 + (.25 x Number of
x [1 + (.25 x Number of previous previous violations)].
violations)].
$200,000-249,999.99..................... [$2127 + ($248 x Number of days late)] $10,633 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$250,000-349,999.99..................... [$3190 + ($283 x Number of days late)] $12,758 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$350,000-449,999.99..................... [$4253 + ($283 x Number of days late)] $14,177 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$450,000-549,999.99..................... [$5316 + ($283 x Number of days late)] $15,594 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$550,000-649,999.99..................... [$6380 + ($283 x Number of days late)] $17,011 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$650,000-749,999.99..................... [$7442 + ($283 x Number of days late)] $18,430 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$750,000-849,999.99..................... [$8505 + ($283 x Number of days late)] $19,846 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$850,000-949,999.99..................... [$9569 + ($283 x Number of days late)] $21,263 x [1 + (.25 x Number
x [1 + (.25 x Number of previous of previous violations)].
violations)].
$950,000 or over........................ [$10,633 + ($283 x Number of days $22,682 x [1 + (.25 x Number
late)] x [1 + (.25 x Number of of previous violations)].
previous violations)].
----------------------------------------------------------------------------------------------------------------
\a\ The civil money penalty for a respondent who does not have any previous violations will not exceed the level
of activity in the report.
[[Page 61143]]
(c) If the respondent fails to file a required report and the
Commission cannot calculate the level of activity under paragraph (d)
of this section, then the civil money penalty shall be $7,797.
* * * * *
Sec. 111.44 [Amended]
0
4. In Sec. 111.44, amend paragraph (a)(1) by removing ``$139'' and
adding in its place ``$142''.
Dated: December 19, 2017.
On behalf of the Commission.
Steven T. Walther,
Chairman, Federal Election Commission.
[FR Doc. 2017-27808 Filed 12-26-17; 8:45 am]
BILLING CODE 6715-01-P
