Civil Penalty Inflation Adjustments, 1525-1527 [2018-00399]
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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations
Pursuant to section 21B of the Securities
Exchange Act of 1934 (Exchange Act)
(15 U.S.C. 78u–2), civil money penalties
may be assessed for violations of certain
provisions of the Exchange Act, where
such penalties are in the public interest.
Tier One civil money penalties may be
assessed pursuant to 15 U.S.C. 78u–
2(b)(1) in an amount not to exceed
$9,239 for a natural person or $92,383
for any other person for violations set
forth in 15 U.S.C. 78u–2(a). Tier Two
civil money penalties may be assessed
pursuant to 15 U.S.C. 78u–2(b)(2) in an
amount not to exceed—for each
violation set forth in 15 U.S.C. 78u–
2(a)—$92,383 for a natural person or
$461,916 for any other person if the act
or omission involved fraud, deceit,
manipulation, or deliberate or reckless
disregard of a regulatory requirement.
Tier Three civil money penalties may be
assessed pursuant to 15 U.S.C. 78u–
2(b)(3) for each violation set forth in 15
U.S.C. 78u–2(a), in an amount not to
exceed $184,767 for a natural person or
$923,831 for any other person, if the act
or omission involved fraud, deceit,
manipulation, or deliberate or reckless
disregard of a regulatory requirement;
and such act or omission directly or
indirectly resulted in substantial losses,
or created a significant risk of
substantial losses to other persons or
resulted in substantial pecuniary gain to
the person who committed the act or
omission.
(16) Civil money penalties assessed
pursuant to 15 U.S.C. 1639e(k) for
appraisal independence violations.
Pursuant to section 1472(a) of the DoddFrank Wall Street Reform and Consumer
Protection Act (Appraisal Independence
Rule) (15 U.S.C. 1639e(k)), civil money
penalties may be assessed for an initial
violation of the Appraisal Independence
Rule in an amount not to exceed
$11,279 for each day during which the
violation continues and, for subsequent
violations, $22,556 for each day during
which the violation continues.
(17) Civil money penalties assessed
for false claims and statements
pursuant to 31 U.S.C. 3802. Pursuant to
the Program Fraud Civil Remedies Act
(31 U.S.C. 3802), civil money penalties
of not more than $11,181 per claim or
statement may be assessed for violations
involving false claims and statements.
(18) Civil money penalties assessed
for violations of 42 U.S.C. 4012a(f).
Pursuant to the Flood Disaster
Protection Act (FDPA) (42 U.S.C.
4012a(f)), civil money penalties may be
assessed against any regulated lending
institution that engages in a pattern or
practice of violations of the FDPA in an
amount not to exceed $2,133 per
violation.
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Dated at Washington, DC on December 19,
2017.
By order of the Board of Directors.
Valerie J. Best,
Assistant Executive Secretary.
[FR Doc. 2018–00403 Filed 1–11–18; 8:45 am]
BILLING CODE 6714–01–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1083
Civil Penalty Inflation Adjustments
Bureau of Consumer Financial
Protection.
ACTION: Final rule.
AGENCY:
The Bureau of Consumer
Financial Protection (Bureau) is
adjusting for inflation the maximum
amount of each civil penalty within the
Bureau’s jurisdiction. These
adjustments are required by the Federal
Civil Penalties Inflation Adjustment Act
of 1990, as amended by the Debt
Collection Improvement Act of 1996
and further amended by the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Inflation
Adjustment Act). The inflation
adjustments mandated by the Inflation
Adjustment Act serve to maintain the
deterrent effect of civil penalties and to
promote compliance with the law.
DATES: This final rule is effective
January 15, 2018.
FOR FURTHER INFORMATION CONTACT:
Monique Chenault, Paralegal Specialist,
Office of Regulations, Consumer
Financial Protection Bureau, 1700
G Street NW, Washington, DC 20552, at
(202) 435–7700.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act of 1990,1 as amended
by the Debt Collection Improvement Act
of 1996 2 and further amended by the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (Inflation Adjustment Act),3
directs Federal agencies to adjust for
inflation the civil penalty amounts
within their jurisdiction not later than
July 1, 2016, and then not later than
January 15 every year thereafter.4 28
1 Public
Law 101–410, 104 Stat. 890.
Law 104–134, section 31001(s)(1), 110
Stat. 1321, 1321–373.
3 Public Law 114–74, section 701, 129 Stat. 584,
599.
4 Section 1301(a) of the Federal Reports
Elimination Act of 1998, Public Law 105–362, 112
Stat. 3293, also amended the Inflation Adjustment
Act by striking section 6, which contained annual
2 Public
PO 00000
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1525
U.S.C. 2461 note. Each agency was
required to make the 2016 one-time
catch-up adjustments through an
interim final rule published in the
Federal Register. On June 14, 2016, the
Bureau published its interim final rule
to make the initial catch-up adjustments
to civil penalties within the Bureau’s
jurisdiction.5 The June 2016 interim
final rule created a new part 1083 and
in § 1083.1 established the inflationadjusted maximum amounts for each
civil penalty within the Bureau’s
jurisdiction.6 The Inflation Adjustment
Act also requires subsequent
adjustments to be made annually, not
later than January 15, and
notwithstanding section 553 of the
Administrative Procedure Act (APA).7
Specifically, Federal agencies are
directed to adjust annually each civil
penalty provided by law within the
jurisdiction of the agency by the ‘‘costof-living adjustment.’’ 8 For annual
adjustments after the initial catch up
adjustments, the ‘‘cost-of-living
adjustment’’ is defined as the percentage
(if any) by which the Consumer Price
Index for All Urban Consumers (CPI–U)
for the month of October preceding the
date of the adjustment, exceeds the CPI–
U for October of the prior year.9 The
Director of the Office of Management
and Budget (OMB) is required to issue
guidance (OMB Guidance) every year by
December 15 to agencies on
implementing the annual civil penalty
inflation adjustments.10 Pursuant to the
Inflation Adjustment Act and OMB
Guidance, agencies must apply the
multiplier reflecting the ‘‘cost-of-living
adjustment’’ to the current penalty
amount and then round that amount to
the nearest dollar to determine the
annual adjustments.11
For the 2018 annual adjustment, the
multiplier reflecting the ‘‘cost-of-living
reporting requirements, and redesignating section 7
as section 6, but did not alter the civil penalty
adjustment requirements.
5 81 FR 38569 (June 14, 2016). Although the
Bureau was not obligated to solicit comments for
the interim final rule, the Bureau invited public
comment and received none.
6 See 12 CFR 1083.1.
7 Inflation Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
8 Inflation Adjustment Act sections 4 and 5,
codified at 28 U.S.C. 2461 note.
9 Inflation Adjustment Act sections 3 and 5,
codified at 28 U.S.C. 2461 note.
10 Inflation Adjustment Act section 7, codified at
28 U.S.C. 2461 note.
11 Inflation Adjustment Act section 5, codified at
28 U.S.C. 2461 note; Memorandum to the Exec.
Dep’ts & Agencies from Mick Mulvaney, Director,
Office of Mgmt. & Budget (Dec. 15, 2017), available
at https://www.whitehouse.gov/wp-content/
uploads/2017/11/M-18-03.pdf.
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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations
adjustment’’ is 1.02041.12 Pursuant to
the Inflation Adjustment Act and OMB
Guidance, the Bureau multiplied each of
its civil penalty amounts by the ‘‘costof-living adjustment’’ multiplier and
rounded to the nearest dollar.13
The new penalty amounts that apply
to civil penalties assessed after January
15, 2018 are as follows:
Penalty
amounts
established
under 2017
final rule
Law
Penalty description
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(A) ......................
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(B) ......................
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(C) ......................
Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2) ...............
Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2) ...............
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1) ....................
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1) ....................
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(2)(A) ...............
SAFE Act, 12 U.S.C. 5113(d)(2) ...................................................................
Truth in Lending Act, 15 U.S.C. 1639e(k)(1) ................................................
Truth in Lending Act, 15 U.S.C. 1639e(k)(2) ................................................
Tier 1 penalty ....................................
Tier 2 penalty ....................................
Tier 3 penalty ....................................
Per violation ......................................
Annual cap ........................................
Per failure ..........................................
Annual cap ........................................
Per failure, where intentional ............
Per violation ......................................
First violation .....................................
Subsequent violations .......................
II. Legal Authority
The Bureau issues this final rule
under the Federal Civil Penalties
Inflation Adjustment Act of 1990,14 as
amended by the Debt Collection
Improvement Act of 1996 15 and further
amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015,16 which requires the
Bureau to adjust for inflation the civil
penalties within its jurisdiction
according to a statutorily prescribed
formula.
III. Procedural Requirements
A. Administrative Procedure Act
sradovich on DSK3GMQ082PROD with RULES
Under the APA, notice and
opportunity for public comment are not
required if the Bureau finds that notice
and public comment are impracticable,
unnecessary, or contrary to the public
interest.17 Pursuant to this final rule,
§ 1083.1 is amended to update the civil
penalty amounts. The 2018 adjustments
to the civil penalty amounts are
technical and non-discretionary, and
they merely apply the statutory method
for adjusting civil penalty amounts.
These adjustments are required by the
Inflation Adjustment Act. Moreover, the
Inflation Adjustment Act directs
agencies to adjust the civil penalties
annually notwithstanding section 553 of
the APA,18 and OMB Guidance
reaffirms that agencies need not
complete a notice-and-comment process
before making the annual adjustments
12 Memorandum to the Exec. Dep’ts & Agencies
from Mick Mulvaney, Director, Office of Mgmt. &
Budget (Dec. 15, 2017), available at https://
www.whitehouse.gov/wp-content/uploads/2017/11/
M-18-03.pdf.
13 In rounding to the nearest dollar, the Bureau
has rounded down where the digit immediately
following the decimal point is less than 5 and has
rounded up where the digit immediately following
the decimal point is 5 or greater.
14 Public Law 101–410, 104 Stat. 890.
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for inflation.19 For these reasons, the
Bureau has determined that publishing
a notice of proposed rulemaking and
providing opportunity for public
comment are unnecessary. Therefore,
the amendment is adopted in final form.
Section 553(d) of the APA generally
requires publication of a final rule not
less than 30 days before its effective
date, except (1) a substantive rule which
grants or recognizes an exemption or
relieves a restriction; (2) interpretive
rules and statements of policy; or (3) as
otherwise provided by the agency for
good cause found and published with
the rule.20 At a minimum, the Bureau
believes the annual adjustments to the
civil penalty amounts in § 1083.1 fall
under the third exception to section
553(d). The Bureau finds that there is
good cause to make the amendments
effective on January 15, 2018. The
amendments to § 1083.1 in this final
rule are technical and nondiscretionary, and they merely apply the
statutory method for adjusting civil
penalty amounts and follow the
statutory directive to make annual
adjustments by January 15 of each year.
Moreover, the Inflation Adjustment Act
directs agencies to adjust the civil
penalties annually notwithstanding
section 553 of the APA,21 and OMB
Guidance reaffirms that agencies need
not provide a delay in effective date for
the annual adjustments for inflation.22
15 Public Law 104–134, section 31001(s)(1), 110
Stat. 1321, 1321–373.
16 Public Law 114–74, section 701, 129 Stat. 584,
599.
17 5 U.S.C. 553(b)(B).
18 Inflation Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
19 Memorandum to the Exec. Dep’ts & Agencies
from Mick Mulvaney, Director, Office of Mgmt. &
Budget (Dec. 15, 2017), available at https://
www.whitehouse.gov/wp-content/uploads/2017/11/
M-18-03.pdf.
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
$5,526
27,631
1,105,241
1,925
1,924,589
90
181,071
181
27,904
11,053
22,105
OMB
‘‘Cost-of-Living
Adjustment’’
multiplier
New penalty
amount
1.02041
1.02041
1.02041
1.02041
1.02041
1.02041
1.02041
1.02041
1.02041
1.02041
1.02041
$5,639
28,195
1,127,799
1,964
1,963,870
92
184,767
185
28,474
11,279
22,556
B. Regulatory Flexibility Act
Because no notice of proposed
rulemaking is required, the Regulatory
Flexibility Act does not require an
initial or final regulatory flexibility
analysis.23
C. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995,24 the Bureau
reviewed this final rule. No collections
of information pursuant to the
Paperwork Reduction Act are contained
in the final rule.
D. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), CFPB will
submit a report containing this rule and
other required information to the U.S.
Senate, the U.S. House of
Representatives, and the Comptroller
General of the United States prior to the
rule taking effect. The Office of
Information and Regulatory Affairs
(OIRA) has designated this rule as not
a ‘‘major rule’’ as defined by 5 U.S.C.
804(2).
List of Subjects in 12 CFR Part 1083
Administrative practice and
procedure, Consumer protection,
Penalties.
Authority and Issuance
For the reasons set forth above, the
Bureau amends 12 CFR part 1083 as set
forth below:
20 5
U.S.C. 553(d).
Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
22 Memorandum to the Exec. Dep’ts & Agencies
from Mick Mulvaney, Director, Office of Mgmt. &
Budget (Dec. 15, 2017), available at https://
www.whitehouse.gov/wp-content/uploads/2017/11/
M-18-03.pdf.
23 5 U.S.C. 603(a), 604(a).
24 44 U.S.C. 3506; 5 CFR part 1320.
21 Inflation
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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations
2. Section 1083.1 is revised to read as
follows:
PART 1083—CIVIL PENALTY
ADJUSTMENTS
■
■
1. The authority citation for part 1083
continues to read as follows:
§ 1083.1 Adjustments of civil penalty
amounts.
Authority: 12 U.S.C. 2609(d); 12 U.S.C.
5113(d)(2); 12 U.S.C. 5565(c); 15 U.S.C.
1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461
note.
(a) The maximum amount of each
civil penalty within the jurisdiction of
the Consumer Financial Protection
Bureau to impose is adjusted in
U.S. Code citation
12
12
12
15
15
12
12
12
12
15
15
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
(b) The adjustments in paragraph (a)
of this section shall apply to civil
penalties assessed after January 15,
2018, regardless of when the violation
for which the penalty is assessed
occurred.
Dated: January 4, 2018.
Mick Mulvaney,
Acting Director, Bureau of Consumer
Financial Protection.
[FR Doc. 2018–00399 Filed 1–11–18; 8:45 am]
BILLING CODE 4810–AM–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2017–1244; Product
Identifier 2013–NM–145–AD; Amendment
39–19152; AD 2018–01–11]
RIN 2120–AA64
Airworthiness Directives; Airbus
Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule; request for
comments.
AGENCY:
sradovich on DSK3GMQ082PROD with RULES
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Tier 1 penalty .............................................................................
Tier 2 penalty .............................................................................
Tier 3 penalty .............................................................................
Per violation ...............................................................................
Annual cap .................................................................................
Per failure ...................................................................................
Annual cap .................................................................................
Per failure, where intentional .....................................................
Per violation ...............................................................................
First violation ..............................................................................
Subsequent violations ................................................................
in the vicinity of the gaseous oxygen
system (GOS) for passengers. We are
issuing this AD to address the unsafe
condition on these products.
DATES: This AD becomes effective
January 29, 2018.
We must receive comments on this
AD by February 26, 2018.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: 202–493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590.
• Hand Delivery: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC, between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
Examining the AD Docket
We are adopting a new
airworthiness directive (AD) for certain
Airbus Model A319–115 and A319–133
airplanes. This AD requires contacting
the FAA to obtain instructions for
addressing the unsafe condition on
these products, and doing the actions
specified in those instructions. This AD
was prompted by a fire during a flight,
SUMMARY:
accordance with the Federal Civil
Penalties Inflation Adjustment Act of
1990, as amended by the Debt
Collection Improvement Act of 1996
and further amended by the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (28 U.S.C.
2461 note), as follows:
Civil penalty description
5565(c)(2)(A) ..............................................................
5565(c)(2)(B) ..............................................................
5565(c)(2)(C) ..............................................................
1717a(a)(2) ................................................................
1717a(a)(2) ................................................................
2609(d)(1) ..................................................................
2609(d)(1) ..................................................................
2609(d)(2)(A) ..............................................................
5113(d)(2) ..................................................................
1639e(k)(1) .................................................................
1639e(k)(2) .................................................................
You may examine the AD docket on
the internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2017–
1244; or in person at the Docket
Operations office between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays. The AD docket
contains this AD, the regulatory
evaluation, any comments received, and
other information. The street address for
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1527
Adjusted
maximum
civil
penalty
amount
$5,639
28,195
1,127,799
1,964
1,963,870
92
184,767
185
28,474
11,279
22,556
the Docket Operations office (telephone:
800–647–5527) is in the ADDRESSES
section. Comments will be available in
the AD docket shortly after receipt.
FOR FURTHER INFORMATION CONTACT:
Sanjay Ralhan, Aerospace Engineer,
International Section, Transport
Standards Branch, FAA, 1601 Lind
Avenue SW, Renton, WA 98057–3356;
telephone: 425–227–1405; fax: 425–
227–1149.
SUPPLEMENTARY INFORMATION:
Discussion
The European Aviation Safety Agency
(EASA), which is the Technical Agent
for the Member States of the European
Union, has issued EASA AD 2014–0045,
dated February 25, 2014; corrected
March 4, 2014 (referred to after this as
the Mandatory Continuing
Airworthiness Information, or ‘‘the
MCAI’’), to correct an unsafe condition
for certain Airbus Model A319–115 and
A319–133 airplanes. The MCAI states:
Following an ECAM [electronic centralized
aircraft monitor] warning ‘‘CARGO SMOKE’’
during flight, the flight crew elected to divert
and the aeroplane made an uneventful
landing. The post-flight inspection evidenced
a heavy fire in the vicinity of the Gaseous
Oxygen System (GOS) for passengers, located
close to the cargo area. The origin of the fire
has not been clearly identified. After more
investigation, Airbus determined that the
current optional passenger GOS design,
specific to A319 aeroplanes, is not robust
enough to prevent further events of this kind.
This condition, if not detected and
corrected, could lead to an uncontrolled fire,
possibly resulting in loss of the aeroplane.
To address this potential unsafe condition,
Airbus developed mod 153555 to improve
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]]>Agencies
[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Rules and Regulations]
[Pages 1525-1527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00399]
=======================================================================
-----------------------------------------------------------------------
BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1083
Civil Penalty Inflation Adjustments
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is
adjusting for inflation the maximum amount of each civil penalty within
the Bureau's jurisdiction. These adjustments are required by the
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by
the Debt Collection Improvement Act of 1996 and further amended by the
Federal Civil Penalties Inflation Adjustment Act Improvements Act of
2015 (Inflation Adjustment Act). The inflation adjustments mandated by
the Inflation Adjustment Act serve to maintain the deterrent effect of
civil penalties and to promote compliance with the law.
DATES: This final rule is effective January 15, 2018.
FOR FURTHER INFORMATION CONTACT: Monique Chenault, Paralegal
Specialist, Office of Regulations, Consumer Financial Protection
Bureau, 1700 G Street NW, Washington, DC 20552, at (202) 435-7700.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act of 1990,\1\ as
amended by the Debt Collection Improvement Act of 1996 \2\ and further
amended by the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Inflation Adjustment Act),\3\ directs Federal
agencies to adjust for inflation the civil penalty amounts within their
jurisdiction not later than July 1, 2016, and then not later than
January 15 every year thereafter.\4\ 28 U.S.C. 2461 note. Each agency
was required to make the 2016 one-time catch-up adjustments through an
interim final rule published in the Federal Register. On June 14, 2016,
the Bureau published its interim final rule to make the initial catch-
up adjustments to civil penalties within the Bureau's jurisdiction.\5\
The June 2016 interim final rule created a new part 1083 and in Sec.
1083.1 established the inflation-adjusted maximum amounts for each
civil penalty within the Bureau's jurisdiction.\6\ The Inflation
Adjustment Act also requires subsequent adjustments to be made
annually, not later than January 15, and notwithstanding section 553 of
the Administrative Procedure Act (APA).\7\
---------------------------------------------------------------------------
\1\ Public Law 101-410, 104 Stat. 890.
\2\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321,
1321-373.
\3\ Public Law 114-74, section 701, 129 Stat. 584, 599.
\4\ Section 1301(a) of the Federal Reports Elimination Act of
1998, Public Law 105-362, 112 Stat. 3293, also amended the Inflation
Adjustment Act by striking section 6, which contained annual
reporting requirements, and redesignating section 7 as section 6,
but did not alter the civil penalty adjustment requirements.
\5\ 81 FR 38569 (June 14, 2016). Although the Bureau was not
obligated to solicit comments for the interim final rule, the Bureau
invited public comment and received none.
\6\ See 12 CFR 1083.1.
\7\ Inflation Adjustment Act section 4, codified at 28 U.S.C.
2461 note.
---------------------------------------------------------------------------
Specifically, Federal agencies are directed to adjust annually each
civil penalty provided by law within the jurisdiction of the agency by
the ``cost-of-living adjustment.'' \8\ For annual adjustments after the
initial catch up adjustments, the ``cost-of-living adjustment'' is
defined as the percentage (if any) by which the Consumer Price Index
for All Urban Consumers (CPI-U) for the month of October preceding the
date of the adjustment, exceeds the CPI-U for October of the prior
year.\9\ The Director of the Office of Management and Budget (OMB) is
required to issue guidance (OMB Guidance) every year by December 15 to
agencies on implementing the annual civil penalty inflation
adjustments.\10\ Pursuant to the Inflation Adjustment Act and OMB
Guidance, agencies must apply the multiplier reflecting the ``cost-of-
living adjustment'' to the current penalty amount and then round that
amount to the nearest dollar to determine the annual adjustments.\11\
---------------------------------------------------------------------------
\8\ Inflation Adjustment Act sections 4 and 5, codified at 28
U.S.C. 2461 note.
\9\ Inflation Adjustment Act sections 3 and 5, codified at 28
U.S.C. 2461 note.
\10\ Inflation Adjustment Act section 7, codified at 28 U.S.C.
2461 note.
\11\ Inflation Adjustment Act section 5, codified at 28 U.S.C.
2461 note; Memorandum to the Exec. Dep'ts & Agencies from Mick
Mulvaney, Director, Office of Mgmt. & Budget (Dec. 15, 2017),
available at https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf.
---------------------------------------------------------------------------
For the 2018 annual adjustment, the multiplier reflecting the
``cost-of-living
[[Page 1526]]
adjustment'' is 1.02041.\12\ Pursuant to the Inflation Adjustment Act
and OMB Guidance, the Bureau multiplied each of its civil penalty
amounts by the ``cost-of-living adjustment'' multiplier and rounded to
the nearest dollar.\13\
---------------------------------------------------------------------------
\12\ Memorandum to the Exec. Dep'ts & Agencies from Mick
Mulvaney, Director, Office of Mgmt. & Budget (Dec. 15, 2017),
available at https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf.
\13\ In rounding to the nearest dollar, the Bureau has rounded
down where the digit immediately following the decimal point is less
than 5 and has rounded up where the digit immediately following the
decimal point is 5 or greater.
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The new penalty amounts that apply to civil penalties assessed
after January 15, 2018 are as follows:
----------------------------------------------------------------------------------------------------------------
Penalty
amounts OMB ``Cost-of-
Law Penalty description established Living New penalty
under 2017 Adjustment'' amount
final rule multiplier
----------------------------------------------------------------------------------------------------------------
Consumer Financial Protection Act, 12 Tier 1 penalty.......... $5,526 1.02041 $5,639
U.S.C. 5565(c)(2)(A).
Consumer Financial Protection Act, 12 Tier 2 penalty.......... 27,631 1.02041 28,195
U.S.C. 5565(c)(2)(B).
Consumer Financial Protection Act, 12 Tier 3 penalty.......... 1,105,241 1.02041 1,127,799
U.S.C. 5565(c)(2)(C).
Interstate Land Sales Full Disclosure Per violation........... 1,925 1.02041 1,964
Act, 15 U.S.C. 1717a(a)(2).
Interstate Land Sales Full Disclosure Annual cap.............. 1,924,589 1.02041 1,963,870
Act, 15 U.S.C. 1717a(a)(2).
Real Estate Settlement Procedures Act, Per failure............. 90 1.02041 92
12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act, Annual cap.............. 181,071 1.02041 184,767
12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act, Per failure, where 181 1.02041 185
12 U.S.C. 2609(d)(2)(A). intentional.
SAFE Act, 12 U.S.C. 5113(d)(2)........ Per violation........... 27,904 1.02041 28,474
Truth in Lending Act, 15 U.S.C. First violation......... 11,053 1.02041 11,279
1639e(k)(1).
Truth in Lending Act, 15 U.S.C. Subsequent violations... 22,105 1.02041 22,556
1639e(k)(2).
----------------------------------------------------------------------------------------------------------------
II. Legal Authority
The Bureau issues this final rule under the Federal Civil Penalties
Inflation Adjustment Act of 1990,\14\ as amended by the Debt Collection
Improvement Act of 1996 \15\ and further amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015,\16\ which
requires the Bureau to adjust for inflation the civil penalties within
its jurisdiction according to a statutorily prescribed formula.
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\14\ Public Law 101-410, 104 Stat. 890.
\15\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321,
1321-373.
\16\ Public Law 114-74, section 701, 129 Stat. 584, 599.
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III. Procedural Requirements
A. Administrative Procedure Act
Under the APA, notice and opportunity for public comment are not
required if the Bureau finds that notice and public comment are
impracticable, unnecessary, or contrary to the public interest.\17\
Pursuant to this final rule, Sec. 1083.1 is amended to update the
civil penalty amounts. The 2018 adjustments to the civil penalty
amounts are technical and non-discretionary, and they merely apply the
statutory method for adjusting civil penalty amounts. These adjustments
are required by the Inflation Adjustment Act. Moreover, the Inflation
Adjustment Act directs agencies to adjust the civil penalties annually
notwithstanding section 553 of the APA,\18\ and OMB Guidance reaffirms
that agencies need not complete a notice-and-comment process before
making the annual adjustments for inflation.\19\ For these reasons, the
Bureau has determined that publishing a notice of proposed rulemaking
and providing opportunity for public comment are unnecessary.
Therefore, the amendment is adopted in final form.
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\17\ 5 U.S.C. 553(b)(B).
\18\ Inflation Adjustment Act section 4, codified at 28 U.S.C.
2461 note.
\19\ Memorandum to the Exec. Dep'ts & Agencies from Mick
Mulvaney, Director, Office of Mgmt. & Budget (Dec. 15, 2017),
available at https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf.
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Section 553(d) of the APA generally requires publication of a final
rule not less than 30 days before its effective date, except (1) a
substantive rule which grants or recognizes an exemption or relieves a
restriction; (2) interpretive rules and statements of policy; or (3) as
otherwise provided by the agency for good cause found and published
with the rule.\20\ At a minimum, the Bureau believes the annual
adjustments to the civil penalty amounts in Sec. 1083.1 fall under the
third exception to section 553(d). The Bureau finds that there is good
cause to make the amendments effective on January 15, 2018. The
amendments to Sec. 1083.1 in this final rule are technical and non-
discretionary, and they merely apply the statutory method for adjusting
civil penalty amounts and follow the statutory directive to make annual
adjustments by January 15 of each year. Moreover, the Inflation
Adjustment Act directs agencies to adjust the civil penalties annually
notwithstanding section 553 of the APA,\21\ and OMB Guidance reaffirms
that agencies need not provide a delay in effective date for the annual
adjustments for inflation.\22\
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\20\ 5 U.S.C. 553(d).
\21\ Inflation Adjustment Act section 4, codified at 28 U.S.C.
2461 note.
\22\ Memorandum to the Exec. Dep'ts & Agencies from Mick
Mulvaney, Director, Office of Mgmt. & Budget (Dec. 15, 2017),
available at https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf.
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B. Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
Regulatory Flexibility Act does not require an initial or final
regulatory flexibility analysis.\23\
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\23\ 5 U.S.C. 603(a), 604(a).
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C. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995,\24\ the
Bureau reviewed this final rule. No collections of information pursuant
to the Paperwork Reduction Act are contained in the final rule.
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\24\ 44 U.S.C. 3506; 5 CFR part 1320.
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D. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
CFPB will submit a report containing this rule and other required
information to the U.S. Senate, the U.S. House of Representatives, and
the Comptroller General of the United States prior to the rule taking
effect. The Office of Information and Regulatory Affairs (OIRA) has
designated this rule as not a ``major rule'' as defined by 5 U.S.C.
804(2).
List of Subjects in 12 CFR Part 1083
Administrative practice and procedure, Consumer protection,
Penalties.
Authority and Issuance
For the reasons set forth above, the Bureau amends 12 CFR part 1083
as set forth below:
[[Page 1527]]
PART 1083--CIVIL PENALTY ADJUSTMENTS
0
1. The authority citation for part 1083 continues to read as follows:
Authority: 12 U.S.C. 2609(d); 12 U.S.C. 5113(d)(2); 12 U.S.C.
5565(c); 15 U.S.C. 1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461
note.
0
2. Section 1083.1 is revised to read as follows:
Sec. 1083.1 Adjustments of civil penalty amounts.
(a) The maximum amount of each civil penalty within the
jurisdiction of the Consumer Financial Protection Bureau to impose is
adjusted in accordance with the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by the Debt Collection Improvement
Act of 1996 and further amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (28 U.S.C. 2461
note), as follows:
------------------------------------------------------------------------
Adjusted
Civil penalty maximum civil
U.S. Code citation description penalty
amount
------------------------------------------------------------------------
12 U.S.C. 5565(c)(2)(A)........ Tier 1 penalty......... $5,639
12 U.S.C. 5565(c)(2)(B)........ Tier 2 penalty......... 28,195
12 U.S.C. 5565(c)(2)(C)........ Tier 3 penalty......... 1,127,799
15 U.S.C. 1717a(a)(2).......... Per violation.......... 1,964
15 U.S.C. 1717a(a)(2).......... Annual cap............. 1,963,870
12 U.S.C. 2609(d)(1)........... Per failure............ 92
12 U.S.C. 2609(d)(1)........... Annual cap............. 184,767
12 U.S.C. 2609(d)(2)(A)........ Per failure, where 185
intentional.
12 U.S.C. 5113(d)(2)........... Per violation.......... 28,474
15 U.S.C. 1639e(k)(1).......... First violation........ 11,279
15 U.S.C. 1639e(k)(2).......... Subsequent violations.. 22,556
------------------------------------------------------------------------
(b) The adjustments in paragraph (a) of this section shall apply to
civil penalties assessed after January 15, 2018, regardless of when the
violation for which the penalty is assessed occurred.
Dated: January 4, 2018.
Mick Mulvaney,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2018-00399 Filed 1-11-18; 8:45 am]
BILLING CODE 4810-AM-P
