Annual Adjustment of Civil Monetary Penalties to Reflect Inflation-2018, 9426-9429 [2018-04480]
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Federal Register / Vol. 83, No. 44 / Tuesday, March 6, 2018 / Rules and Regulations
(h) Installation Prohibition
After the effective date of this AD, except
as part of the inspection required by
paragraph (g)(1) of this AD, do not install a
magnetic head, P/N 9520011545, with an
S/N DU4621 up to and including DU5053 on
any engine.
Issued in Burlington, Massachusetts, on
February 23, 2018.
Karen M. Grant,
Acting Manager, Engine and Propeller
Standards Branch, Aircraft Certification
Service.
(i) Alternative Methods of Compliance
(AMOCs)
(1) The Manager, ECO Branch, FAA, has
the authority to approve AMOCs for this AD,
if requested using the procedures found in 14
CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector
or local Flight Standards District Office, as
appropriate. If sending information directly
to the manager of the ECO Branch, send it to
the attention of the person identified in
paragraph (j)(1) of this AD. You may email
your request to: ANE-AD-AMOC@faa.gov.
(2) Before using any approved AMOC,
notify your appropriate principal inspector,
or lacking a principal inspector, the manager
of the local flight standards district office/
certificate holding district office.
BILLING CODE 4910–13–P
jstallworth on DSKBBY8HB2PROD with RULES
(j) Related Information
(1) For more information about this AD,
contact Robert Green, Aerospace Engineer,
ECO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803; phone: 781–238–
7754; fax: 781–238–7199; email:
robert.green@faa.gov.
(2) Refer to MCAI European Aviation
Safety Agency AD 2018–0012–E, dated
January 16, 2018, for more information. You
may examine the MCAI in the AD docket on
the internet at https://www.regulations.gov by
searching for and locating it in Docket No.
FAA–2018–0084.
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part 51.
(2) You must use this service information
as applicable to do the actions required by
this AD, unless the AD specifies otherwise.
(i) Safran Helicopter Engines Alert
Mandatory Service Bulletin (MSB) A319 79
4840, Version A, dated November 27, 2017.
(ii) Safran Helicopter Engines Alert MSB
A319 79 4841, Version A, dated November
20, 2017.
(3) For Safran Helicopter Engines service
information identified in this AD, contact
Safran Helicopter Engines, S.A., 40220
Tarnos, France; phone: (33) 05 59 74 40 00;
fax: (33) 05 59 74 45 15.
(4) You may view this service information
at FAA, Engine & Propeller Standards
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MA 01803. For information on the
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VerDate Sep<11>2014
15:02 Mar 05, 2018
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[FR Doc. 2018–04439 Filed 3–5–18; 8:45 am]
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 143
RIN 3038–AE58
Annual Adjustment of Civil Monetary
Penalties to Reflect Inflation—2018
Commodity Futures Trading
Commission.
ACTION: Final rule.
AGENCY:
The Commodity Futures
Trading Commission (Commission) is
amending Rule 143.8, its rule that
governs the maximum amount of civil
monetary penalties, to adjust for
inflation. This rule sets forth the
maximum, inflation-adjusted dollar
amount for civil monetary penalties
(CMPs) assessable for violations of the
Commodity Exchange Act (CEA) and
Commission rules, regulations and
orders thereunder. The rule, as
amended, implements the Federal Civil
Penalties Inflation Adjustment Act of
1990, as amended.
DATES: This rule is effective on March 6,
2018 and is applicable to penalties
assessed after March 6, 2018.
FOR FURTHER INFORMATION CONTACT:
Edward J. Riccobene, Associate Chief
Counsel, Division of Enforcement, at
(202) 418–5327 or ericcobene@cftc.gov,
Commodity Futures Trading
Commission, 1155 21st Street NW,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act of 1990 (FCPIAA) 1
requires the head of each Federal agency
to periodically adjust for inflation the
minimum and maximum amount of
CMPs provided by law within the
jurisdiction of that agency.2 A 2015
1 The FCPIAA, Public Law 101–410 (1990), as
amended, is codified at 28 U.S.C. 2461 note. The
FCPIAA states that the purpose of the FCPIAA is
to establish a mechanism that (1) allows for regular
adjustment for inflation of civil monetary penalties;
(2) maintains the deterrent effect of civil monetary
penalties and promote compliance with the law;
and (3) improves the collection by the Federal
Government of civil monetary penalties.
2 For the relevant CMPs within the Commission’s
jurisdiction, the Act provides only for maximum
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amendment to the FCPIAA 3 required
agencies to make an initial ‘‘catch-up’’
adjustment to its civil monetary
penalties effective no later than August
1, 2016.4 For every year thereafter
effective not later than January 15, the
FCPIAA, as amended, requires agencies
to make annual adjustments for
inflation, with guidance from the
Director of the Office of Management
and Budget.5
II. Commodity Exchange Act Civil
Monetary Penalties
The following sections of the CEA
provide for CMPs that meet the FCPIAA
definition 6 and these CMPs are,
therefore, subject to the inflation
adjustment: Sections 6(c), 6b, and 6c of
the CEA.7
III. Annual Inflation Adjustment for
Commodity Exchange Act Civil
Monetary Penalties
A. Methodology
The FCPIAA annual inflation
adjustment, in the context of the CFTC’s
CMPs, is determined by increasing the
maximum penalty by a ‘‘cost-of-living
adjustment’’, rounded to the nearest
multiple of one dollar.8 Annual
inflation adjustments are based on the
percent change between the October
Consumer Price Index for all Urban
Consumers (CPI–U) preceding the date
of the adjustment, and the prior year’s
October CPI–U.9 In this case, October
2017 CPI–U (246.663)/October 2015
CPI–U (241.729) = 1.02041.10 In order to
amounts that can be assessed for each violation of
the Act or the rules, regulations and orders
promulgated thereunder; the Act does not set forth
any minimum penalties. Therefore, the remainder
of this release will refer only to CMP maximums.
3 Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Public Law 114–74, 129
Stat. 584 (2015) (2015 Act), title VII, Section 701.
4 FCPIAA Sections 4 and 5. See also, Adjustment
of Civil Monetary Penalties for Inflation, 81 FR
41435 (June 27, 2016).
5 FCPIAA Sections 4 and 5. See also, Executive
Office of the President, Office of Management and
Budget Memorandum, M–18–03, Implementation of
Penalty Inflation Adjustments for 2018, Pursuant to
the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Dec. 15, 2017) (2017
OMB Guidance) (https://www.whitehouse.gov/wpcontent/uploads/2017/11/M-18-03.pdf).
6 FCPIAA Section 3(2).
7 7 U.S.C. 9, 13a–1, 13b. Criminal authorities may
also seek fines for criminal violations of the CEA
(see 7 U.S.C. 13, 13(c), 13(d), 13(e), and 13b). The
FCPIAA does not affect the amounts of these
criminal penalties.
8 FCPIAA Sections 4 and 5.
9 FCPIAA Section 5(b)(1).
10 The CPI–U is published by the Department of
Labor. Interested parties may find the relevant
Consumer Price Index on the internet. To access
this information, go to the Consumer Price Index
Home Page at: https://www.bls.gov/cpi/. Click the
‘‘CPI Data/Databases’’ heading, and select ‘‘All
Urban Consumers (Current Series)’’, ‘‘Top Picks.’’
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Federal Register / Vol. 83, No. 44 / Tuesday, March 6, 2018 / Rules and Regulations
complete the 2018 annual adjustment,
the CFTC must multiply each of its most
recent CMP amounts by the multiplier,
U.S. Code citation
1.02041, and round to the nearest
dollar.11
Civil monetary penalty description
9427
B. Civil Monetary Penalty Adjustments
Applying the FCPIAA annual
inflation adjustment methodology
results in the following amended CMPs:
Violations occurring on or after 11/02/2015
Penalty
amount in
January 2017
Final Rule 12
CPI–U
multiplier
New
adjusted
penalty
amount
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of
the Commodity Exchange
Act).
For any person other than a
registered entity *.
$157,892
1.02041
$161,115
For any person other than a
registered entity *.
For a registered entity * or
any of its directors, officers
or employees.
For a registered entity * or
any of its directors, officers
or employees.
7 U.S.C. 13a (Section 6b of
the Commodity Exchange
Act).
Non-Manipulation or Attempted Manipulation.
Manipulation or Attempted
Manipulation.
Non-Manipulation or Attempted Manipulation.
1,138,937
1.02041
1,162,183
869,757
1.02041
887,509
Manipulation or Attempted
Manipulation.
1,138,937
1.02041
1,162,183
173,951
1.02041
177,501
1,138,937
1.02041
1,162,183
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c
of the Commodity Exchange Act).
Any Person ...........................
Non-Manipulation or Attempted Manipulation.
Any Person ...........................
Manipulation or Attempted
Manipulation.
* The term ‘‘registered entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
The FCPIAA provides that any
increase under the FCPIAA in a civil
monetary penalty shall apply only to
civil monetary penalties, including
those whose associated violation
predated such increase, which are
assessed after the date the increase takes
effect.13 Thus, the new CMP amounts
established by this rulemaking shall
apply to penalties assessed after March
6, 2018, for violations that occurred on
or after November 2, 2015, the effective
date of the FCPIAA amendment
requiring annual adjustments, the 2015
Act.14
date—is not required for agencies to
issue regulations implementing the
annual adjustment.’’ 16 The Commission
further notes that the notice and
comment procedures of the APA do not
apply to this rulemaking because the
Commission is acting herein pursuant to
statutory language that mandates that
the Commission act in a
nondiscretionary matter.17
The FCPIAA specifically exempted
from the Administrative Procedure Act
(APA) the rulemakings required to
implement annual inflation
adjustments.15 ‘‘This means that the
public procedure the APA generally
requires—notice, an opportunity for
comment, and a delay in effective
B. Regulatory Flexibility Act
The Regulatory Flexibility Act 18
requires agencies with rulemaking
authority to consider the impact of
certain of their rules on small
businesses. A regulatory flexibility
analysis is only required for rules for
which the agency publishes a general
notice of proposed rulemaking pursuant
to section 553(b) or any other law.19
Because, as discussed above, the
Commission is not obligated by section
553(b) or any other law to publish a
general notice of proposed rulemaking
with respect to the revisions being made
to regulation 143.8, the Commission
Then check the box for ‘‘U.S. All items, 1982–
84=100—CUUR0000SA0’’, and click the ‘‘Retrieve
data’’ button.
11 2017 OMB Guidance at 3.
12 82 FR 7643.
13 FCPIAA Section 6.
14 Prior Commission rulemakings to affect the
required inflation adjustments referenced the date
the enforcement action was filed without regard to
the date of the corresponding violation. This
rulemaking specifically references the date of the
violation, thereby the Commission clarifies its
determination that these adjusted penalties apply
only with respect to violations occurring on or after
November 2, 2015, the effective date of the 2015
Act.
IV. Administrative Compliance
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A. Notice Requirement
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additionally is not obligated to conduct
a regulatory flexibility analysis.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA),20 which imposes certain
requirements on Federal agencies,
including the Commission, in
connection with their conducting or
sponsoring any collection of
information as defined by the PRA, does
not apply to this rule. This rule
amendment does not contain
information collection requirements that
require the approval of the Office of
Management and Budget.
D. Consideration of Costs and Benefits
Section 15(a) of the CEA 21 requires
the Commission to consider the costs
and benefits of its action before issuing
a new regulation. Section 15(a) further
specifies that costs and benefits shall be
evaluated in light of five broad areas of
market and public concern: (1)
Protection of market participants and
the public; (2) efficiency,
15 FCPIAA
Section 4(b)(2).
OMB Guidance at 4.
17 Lake Carriers’ Ass’n v. EPA, 652 F.3d 1, 10 (DC
Cir. 2011).
18 5 U.S.C. 601–612.
19 5 U.S.C. 603(a).
20 44 U.S.C. 3507(d).
21 7 U.S.C. 19(a).
16 2017
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Federal Register / Vol. 83, No. 44 / Tuesday, March 6, 2018 / Rules and Regulations
competitiveness, and financial integrity
of futures markets; (3) price discovery;
(4) sound risk management practices;
and (5) other public interest
considerations.
The Commission believes that
benefits of this rulemaking greatly
outweigh the costs, if any. As the
Commission understands, the statutory
provisions by which it is making costof-living adjustments to the CMPs in
regulation 143.8 were enacted to ensure
that CMPs do not lose their deterrence
value because of inflation. An analysis
of the costs and benefits of these
adjustments were made before
enactment of the statutory provisions
under which the Commission is
operating, and limit the discretion of the
Commission to the extent that there are
no regulatory choices the Commission
could make that would supersede the
pre-enactment analysis with respect to
the five factors enumerated in section
15(a), or any other factors.
List of Subjects in 17 CFR Part 143
Civil monetary penalties, Claims.
For the reasons set forth in the
preamble, the Commodity Futures
Trading Commission amends part 143 of
title 17 of the Code of Federal
Regulations as follows:
PART 143—COLLECTION OF CLAIMS
OWED THE UNITED STATES ARISING
FROM ACTIVITIES UNDER THE
COMMISSION’S JURISDICTION
1. The authority citation for part 143
continues to read as follows:
■
Authority: 7 U.S.C. 9, 15, 9a, 12a(5), 13a,
13a–1(d), 13(a), 13b; 31 U.S.C. 3701–3720E;
28 U.S.C. 2461 note.
■
2. Revise § 143.8 to read as follows:
§ 143.8 Inflation-adjusted civil monetary
penalties.
(a) Statutory inflation adjustment of
civil monetary penalties. The Inflation
Adjustment Act of 1990, as amended,
requires annual inflation adjustments to
the civil monetary penalties imposed
under the Commodity Exchange Act for
violations that occurred on or after
November 2, 2015. The Commission
will publish notice of these adjusted
penalty amounts in the Federal
Register. The inflation adjustment is
calculated by multiplying the maximum
dollar amount of the civil monetary
penalty for the previous calendar year
by the cost-of-living inflation
adjustment multiplier provided by the
Office Management and Budget, which
is based on the change in the Consumer
Price Index, and rounding the total to
the nearest dollar. Set forth in the charts
in paragraph (b) of this section are the
inflation adjusted penalty amounts for
violations occurring on or after
November 2, 2015 and the penalty
amounts for violations that occurred
prior to November 2, 2015. These
penalty charts are also available on the
Commission’s website at: https://
www.cftc.gov/LawRegulation/
Enforcement/InflationAdjustedCivil
MonetaryPenalties/index.htm.
(b) 2018 inflation adjustment. The
maximum amount of each civil
monetary penalty in the following
charts applies to penalties assessed after
March 6, 2018:
(1) For Non-Manipulation or
Attempted Manipulation Violations:
TABLE 1 TO PARAGRAPH (b)(1)
Date of violation and corresponding penalty
U.S. Code citation
Civil monetary penalty description
10/23/2004
through
10/22/2008
10/23/2008
through
10/22/2012
10/23/2012
through
11/01/2015
11/02/2015
to present
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of the Commodity Exchange Act).
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act).
For any person other than a registered entity 1.
For a registered entity 1 or any of its
directors, officers or employees.
$130,000
$130,000
$140,000
$161,115
625,000
675,000
700,000
887,509
140,000
177,501
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c of the
Commodity Exchange Act).
1 The
Any Person .......................................
130,000
140,000
term ‘‘registered entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
(2) For Manipulation or Attempted
Manipulation Violations:
TABLE 1 TO PARAGRAPH (b)(2)
Date of violation and corresponding penalty
U.S. Code citation
Civil monetary penalty description
10/23/2004
through
05/21/2008
05/22/2008
through
08/14/2011
08/15/2011
through
11/01/2015
11/02/2015
to present
jstallworth on DSKBBY8HB2PROD with RULES
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of the Commodity Exchange Act).
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act).
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For any person other than a registered entity 1.
For a registered entity 1 or any of its
directors, officers or employees.
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$130,000
$1,000,000
$1,025,000
$1,162,183
625,000
1,000,000
1,025,000
1,162,183
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Federal Register / Vol. 83, No. 44 / Tuesday, March 6, 2018 / Rules and Regulations
TABLE 1 TO PARAGRAPH (b)(2)—Continued
Date of violation and corresponding penalty
U.S. Code citation
Civil monetary penalty description
10/23/2004
through
05/21/2008
05/22/2008
through
08/14/2011
08/15/2011
through
11/01/2015
11/02/2015
to present
Civil Monetary Penalty Imposed by a Federal District Court In a Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c of the
Commodity Exchange Act).
1 The
Any Person .......................................
130,000
DEPARTMENT OF HOMELAND
SECURITY
Note: The following appendix will not
appear in the Code of Federal Regulations.
33 CFR Part 117
Appendix to Adjustment of Civil
Monetary Penalties for Inflation—
2018—Commission Voting Summary
Drawbridge Operation Regulation;
Columbia River, Vancouver, WA
On this matter, Chairman Giancarlo and
Commissioners Quintenz and Behnam voted
in the affirmative. No Commissioner voted in
the negative.
ACTION:
Coast Guard
[Docket No. USCG–2018–0126]
[FR Doc. 2018–04480 Filed 3–5–18; 8:45 am]
BILLING CODE 6351–01–P
Coast Guard, DHS.
Notice of deviation from
drawbridge regulations.
AGENCY:
The Coast Guard has issued a
temporary deviation from the operating
schedule that governs the Burlington
Northern Santa Fe (BNSF) Railway
Bridge across the Columbia River, mile
105.6, at Vancouver, WA. The deviation
is necessary to accommodate
maintenance and replacement of various
bridge components. This deviation
allows the bridge to remain in the
closed-to-navigation position during
maintenance activities.
DATES: This deviation is effective from
8 a.m. on March 5, 2018 to 4 p.m. on
March 14, 2018.
SUMMARY:
Time/date start
jstallworth on DSKBBY8HB2PROD with RULES
a.m.
a.m.
a.m.
a.m.
a.m.
a.m.
a.m.
a.m.
1,025,000
1,162,183
term ‘‘registered entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
Issued in Washington, DC, on February 28,
2018, by the Commission.
Robert N. Sidman,
Deputy Secretary of the Commission.
8
8
8
8
8
8
8
8
1,000,000
Mar
Mar
Mar
Mar
Mar
Mar
Mar
Mar
Time/date end
5, 2018 .............................................
6, 2018 .............................................
7, 2018 .............................................
8, 2018 .............................................
9, 2018 .............................................
12, 2018 ...........................................
13, 2018 ...........................................
14, 2018 ...........................................
The subject bridge operates in
accordance with 33 CFR 117.5. The
bridge shall operate in accordance to 33
CFR 117.5 at all other times.
Waterway usage on this part of the
Columbia River includes vessels ranging
from large ships to commercial tug and
tow vessels to recreational pleasure craft
including cabin cruisers and sailing
vessels. Vessels able to pass through the
bridge in the closed-to-navigation
position may do so at any time. The
VerDate Sep<11>2014
15:02 Mar 05, 2018
The docket for this
deviation, USCG–2018–0126 is available
at https://www.regulations.gov. Type the
docket number in the ‘‘SEARCH’’ box
and click ‘‘SEARCH.’’ Click on Open
Docket Folder on the line associated
with this deviation.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this temporary
deviation, call or email Mr. Steven
Fischer, Bridge Administrator,
Thirteenth Coast Guard District;
telephone 206–220–7282, email d13-pfd13bridges@uscg.mil.
SUPPLEMENTARY INFORMATION: BNSF,
bridge owner, requested that the BNSF
Swing Bridge across the Columbia
River, mile 105.6, remain in the closedto-navigation position to marine vessel
traffic for maintenance and component
replacement activities. The BNSF Swing
Bridge provides 39 feet of vertical
clearance above Columbia River Datum
0.0 while in the closed-to-navigation
position. This deviation allows the
BNSF Swing Bridge to remain in the
closed-to-navigation position, and need
not open for maritime traffic as listed in
the table below:
ADDRESSES:
Jkt 244001
4
4
4
4
4
4
4
4
p.m.
p.m.
p.m.
p.m.
p.m.
p.m.
p.m.
p.m.
Mar
Mar
Mar
Mar
Mar
Mar
Mar
Mar
Action
5, 2018 ..........................................
6, 2018 ..........................................
7, 2018 ..........................................
8, 2018 ..........................................
9, 2018 ..........................................
12, 2018 ........................................
13, 2018 ........................................
14, 2018 ........................................
bridge will be able to open for
emergencies during this closure period
if a one hour notice is given except on
March 6, 2018 and March 8, 2018, and
there is no immediate alternate route for
vessels to pass. We contacted known
river users, and requested objections to
reschedule BNSF’s maintenance period.
We have not received any objections to
this deviation. The Coast Guard will
also inform the users of the waterways
through our Local and Broadcast
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span
span
span
span
span
span
span
span
in
in
in
in
in
in
in
in
the
the
the
the
the
the
the
the
closed-to-navigation
closed-to-navigation
closed-to-navigation
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closed-to-navigation
closed-to-navigation
closed-to-navigation
closed-to-navigation
position.
position.
position.
position.
position.
position.
position.
position.
Notices to Mariners of the change in
operating schedule for the bridge so that
vessels can arrange their transits to
minimize any impact caused by the
temporary deviation.
In accordance with 33 CFR 117.35(e),
the drawbridge must return to its regular
operating schedule immediately at the
end of the designated time period. This
deviation from the operating regulations
is authorized under 33 CFR 117.35.
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]]>Agencies
[Federal Register Volume 83, Number 44 (Tuesday, March 6, 2018)]
[Rules and Regulations]
[Pages 9426-9429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04480]
=======================================================================
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 143
RIN 3038-AE58
Annual Adjustment of Civil Monetary Penalties to Reflect
Inflation--2018
AGENCY: Commodity Futures Trading Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commodity Futures Trading Commission (Commission) is
amending Rule 143.8, its rule that governs the maximum amount of civil
monetary penalties, to adjust for inflation. This rule sets forth the
maximum, inflation-adjusted dollar amount for civil monetary penalties
(CMPs) assessable for violations of the Commodity Exchange Act (CEA)
and Commission rules, regulations and orders thereunder. The rule, as
amended, implements the Federal Civil Penalties Inflation Adjustment
Act of 1990, as amended.
DATES: This rule is effective on March 6, 2018 and is applicable to
penalties assessed after March 6, 2018.
FOR FURTHER INFORMATION CONTACT: Edward J. Riccobene, Associate Chief
Counsel, Division of Enforcement, at (202) 418-5327 or
[email protected], Commodity Futures Trading Commission, 1155 21st
Street NW, Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act of 1990
(FCPIAA) \1\ requires the head of each Federal agency to periodically
adjust for inflation the minimum and maximum amount of CMPs provided by
law within the jurisdiction of that agency.\2\ A 2015 amendment to the
FCPIAA \3\ required agencies to make an initial ``catch-up'' adjustment
to its civil monetary penalties effective no later than August 1,
2016.\4\ For every year thereafter effective not later than January 15,
the FCPIAA, as amended, requires agencies to make annual adjustments
for inflation, with guidance from the Director of the Office of
Management and Budget.\5\
---------------------------------------------------------------------------
\1\ The FCPIAA, Public Law 101-410 (1990), as amended, is
codified at 28 U.S.C. 2461 note. The FCPIAA states that the purpose
of the FCPIAA is to establish a mechanism that (1) allows for
regular adjustment for inflation of civil monetary penalties; (2)
maintains the deterrent effect of civil monetary penalties and
promote compliance with the law; and (3) improves the collection by
the Federal Government of civil monetary penalties.
\2\ For the relevant CMPs within the Commission's jurisdiction,
the Act provides only for maximum amounts that can be assessed for
each violation of the Act or the rules, regulations and orders
promulgated thereunder; the Act does not set forth any minimum
penalties. Therefore, the remainder of this release will refer only
to CMP maximums.
\3\ Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Public Law 114-74, 129 Stat. 584 (2015)
(2015 Act), title VII, Section 701.
\4\ FCPIAA Sections 4 and 5. See also, Adjustment of Civil
Monetary Penalties for Inflation, 81 FR 41435 (June 27, 2016).
\5\ FCPIAA Sections 4 and 5. See also, Executive Office of the
President, Office of Management and Budget Memorandum, M-18-03,
Implementation of Penalty Inflation Adjustments for 2018, Pursuant
to the Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (Dec. 15, 2017) (2017 OMB Guidance) (https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf).
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II. Commodity Exchange Act Civil Monetary Penalties
The following sections of the CEA provide for CMPs that meet the
FCPIAA definition \6\ and these CMPs are, therefore, subject to the
inflation adjustment: Sections 6(c), 6b, and 6c of the CEA.\7\
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\6\ FCPIAA Section 3(2).
\7\ 7 U.S.C. 9, 13a-1, 13b. Criminal authorities may also seek
fines for criminal violations of the CEA (see 7 U.S.C. 13, 13(c),
13(d), 13(e), and 13b). The FCPIAA does not affect the amounts of
these criminal penalties.
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III. Annual Inflation Adjustment for Commodity Exchange Act Civil
Monetary Penalties
A. Methodology
The FCPIAA annual inflation adjustment, in the context of the
CFTC's CMPs, is determined by increasing the maximum penalty by a
``cost-of-living adjustment'', rounded to the nearest multiple of one
dollar.\8\ Annual inflation adjustments are based on the percent change
between the October Consumer Price Index for all Urban Consumers (CPI-
U) preceding the date of the adjustment, and the prior year's October
CPI-U.\9\ In this case, October 2017 CPI-U (246.663)/October 2015 CPI-U
(241.729) = 1.02041.\10\ In order to
[[Page 9427]]
complete the 2018 annual adjustment, the CFTC must multiply each of its
most recent CMP amounts by the multiplier, 1.02041, and round to the
nearest dollar.\11\
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\8\ FCPIAA Sections 4 and 5.
\9\ FCPIAA Section 5(b)(1).
\10\ The CPI-U is published by the Department of Labor.
Interested parties may find the relevant Consumer Price Index on the
internet. To access this information, go to the Consumer Price Index
Home Page at: https://www.bls.gov/cpi/. Click the ``CPI Data/
Databases'' heading, and select ``All Urban Consumers (Current
Series)'', ``Top Picks.'' Then check the box for ``U.S. All items,
1982-84=100--CUUR0000SA0'', and click the ``Retrieve data'' button.
\11\ 2017 OMB Guidance at 3.
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B. Civil Monetary Penalty Adjustments
Applying the FCPIAA annual inflation adjustment methodology results
in the following amended CMPs:
----------------------------------------------------------------------------------------------------------------
U.S. Code citation Civil monetary penalty
description
Violations occurring on or after 11/02/2015
----------------------------------------------------------------------------------------------------------------
Penalty CPI-U New
amount in multiplier adjusted
January 2017 penalty
Final Rule amount
\12\
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 9 (Section 6(c) of For any person Non- $157,892 1.02041 $161,115
the Commodity Exchange Act). other than a Manipulation
registered or Attempted
entity *. Manipulation.
For any person Manipulation or 1,138,937 1.02041 1,162,183
other than a Attempted
registered Manipulation.
entity *.
7 U.S.C. 13a (Section 6b of For a registered Non- 869,757 1.02041 887,509
the Commodity Exchange Act). entity * or any Manipulation
of its or Attempted
directors, Manipulation.
officers or
employees.
For a registered Manipulation or 1,138,937 1.02041 1,162,183
entity * or any Attempted
of its Manipulation.
directors,
officers or
employees.
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 13a-1 (Section 6c of Any Person...... Non- 173,951 1.02041 177,501
the Commodity Exchange Act). Manipulation
or Attempted
Manipulation.
Any Person...... Manipulation or 1,138,937 1.02041 1,162,183
Attempted
Manipulation.
----------------------------------------------------------------------------------------------------------------
* The term ``registered entity'' is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
The FCPIAA provides that any increase under the FCPIAA in a civil
monetary penalty shall apply only to civil monetary penalties,
including those whose associated violation predated such increase,
which are assessed after the date the increase takes effect.\13\ Thus,
the new CMP amounts established by this rulemaking shall apply to
penalties assessed after March 6, 2018, for violations that occurred on
or after November 2, 2015, the effective date of the FCPIAA amendment
requiring annual adjustments, the 2015 Act.\14\
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\12\ 82 FR 7643.
\13\ FCPIAA Section 6.
\14\ Prior Commission rulemakings to affect the required
inflation adjustments referenced the date the enforcement action was
filed without regard to the date of the corresponding violation.
This rulemaking specifically references the date of the violation,
thereby the Commission clarifies its determination that these
adjusted penalties apply only with respect to violations occurring
on or after November 2, 2015, the effective date of the 2015 Act.
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IV. Administrative Compliance
A. Notice Requirement
The FCPIAA specifically exempted from the Administrative Procedure
Act (APA) the rulemakings required to implement annual inflation
adjustments.\15\ ``This means that the public procedure the APA
generally requires--notice, an opportunity for comment, and a delay in
effective date--is not required for agencies to issue regulations
implementing the annual adjustment.'' \16\ The Commission further notes
that the notice and comment procedures of the APA do not apply to this
rulemaking because the Commission is acting herein pursuant to
statutory language that mandates that the Commission act in a
nondiscretionary matter.\17\
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\15\ FCPIAA Section 4(b)(2).
\16\ 2017 OMB Guidance at 4.
\17\ Lake Carriers' Ass'n v. EPA, 652 F.3d 1, 10 (DC Cir. 2011).
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B. Regulatory Flexibility Act
The Regulatory Flexibility Act \18\ requires agencies with
rulemaking authority to consider the impact of certain of their rules
on small businesses. A regulatory flexibility analysis is only required
for rules for which the agency publishes a general notice of proposed
rulemaking pursuant to section 553(b) or any other law.\19\ Because, as
discussed above, the Commission is not obligated by section 553(b) or
any other law to publish a general notice of proposed rulemaking with
respect to the revisions being made to regulation 143.8, the Commission
additionally is not obligated to conduct a regulatory flexibility
analysis.
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\18\ 5 U.S.C. 601-612.
\19\ 5 U.S.C. 603(a).
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C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA),\20\ which imposes
certain requirements on Federal agencies, including the Commission, in
connection with their conducting or sponsoring any collection of
information as defined by the PRA, does not apply to this rule. This
rule amendment does not contain information collection requirements
that require the approval of the Office of Management and Budget.
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\20\ 44 U.S.C. 3507(d).
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D. Consideration of Costs and Benefits
Section 15(a) of the CEA \21\ requires the Commission to consider
the costs and benefits of its action before issuing a new regulation.
Section 15(a) further specifies that costs and benefits shall be
evaluated in light of five broad areas of market and public concern:
(1) Protection of market participants and the public; (2) efficiency,
[[Page 9428]]
competitiveness, and financial integrity of futures markets; (3) price
discovery; (4) sound risk management practices; and (5) other public
interest considerations.
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\21\ 7 U.S.C. 19(a).
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The Commission believes that benefits of this rulemaking greatly
outweigh the costs, if any. As the Commission understands, the
statutory provisions by which it is making cost-of-living adjustments
to the CMPs in regulation 143.8 were enacted to ensure that CMPs do not
lose their deterrence value because of inflation. An analysis of the
costs and benefits of these adjustments were made before enactment of
the statutory provisions under which the Commission is operating, and
limit the discretion of the Commission to the extent that there are no
regulatory choices the Commission could make that would supersede the
pre-enactment analysis with respect to the five factors enumerated in
section 15(a), or any other factors.
List of Subjects in 17 CFR Part 143
Civil monetary penalties, Claims.
For the reasons set forth in the preamble, the Commodity Futures
Trading Commission amends part 143 of title 17 of the Code of Federal
Regulations as follows:
PART 143--COLLECTION OF CLAIMS OWED THE UNITED STATES ARISING FROM
ACTIVITIES UNDER THE COMMISSION'S JURISDICTION
0
1. The authority citation for part 143 continues to read as follows:
Authority: 7 U.S.C. 9, 15, 9a, 12a(5), 13a, 13a-1(d), 13(a),
13b; 31 U.S.C. 3701-3720E; 28 U.S.C. 2461 note.
0
2. Revise Sec. 143.8 to read as follows:
Sec. 143.8 Inflation-adjusted civil monetary penalties.
(a) Statutory inflation adjustment of civil monetary penalties. The
Inflation Adjustment Act of 1990, as amended, requires annual inflation
adjustments to the civil monetary penalties imposed under the Commodity
Exchange Act for violations that occurred on or after November 2, 2015.
The Commission will publish notice of these adjusted penalty amounts in
the Federal Register. The inflation adjustment is calculated by
multiplying the maximum dollar amount of the civil monetary penalty for
the previous calendar year by the cost-of-living inflation adjustment
multiplier provided by the Office Management and Budget, which is based
on the change in the Consumer Price Index, and rounding the total to
the nearest dollar. Set forth in the charts in paragraph (b) of this
section are the inflation adjusted penalty amounts for violations
occurring on or after November 2, 2015 and the penalty amounts for
violations that occurred prior to November 2, 2015. These penalty
charts are also available on the Commission's website at: https://www.cftc.gov/LawRegulation/Enforcement/InflationAdjustedCivilMonetaryPenalties/index.htm.
(b) 2018 inflation adjustment. The maximum amount of each civil
monetary penalty in the following charts applies to penalties assessed
after March 6, 2018:
(1) For Non-Manipulation or Attempted Manipulation Violations:
Table 1 to Paragraph (b)(1)
----------------------------------------------------------------------------------------------------------------
Date of violation and corresponding penalty
Civil monetary ---------------------------------------------------------------
U.S. Code citation penalty 10/23/2004 10/23/2008 10/23/2012
description through 10/22/ through 10/22/ through 11/01/ 11/02/2015 to
2008 2012 2015 present
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 9 (Section 6(c) of For any person $130,000 $130,000 $140,000 $161,115
the Commodity Exchange Act). other than a
registered
entity \1\.
7 U.S.C. 13a (Section 6b of For a registered 625,000 675,000 700,000 887,509
the Commodity Exchange Act). entity \1\ or
any of its
directors,
officers or
employees.
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 13a-1 (Section 6c of Any Person...... 130,000 140,000 140,000 177,501
the Commodity Exchange Act).
----------------------------------------------------------------------------------------------------------------
\1\ The term ``registered entity'' is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
(2) For Manipulation or Attempted Manipulation Violations:
Table 1 to Paragraph (b)(2)
----------------------------------------------------------------------------------------------------------------
Date of violation and corresponding penalty
Civil monetary ---------------------------------------------------------------
U.S. Code citation penalty 10/23/2004 05/22/2008 08/15/2011
description through 05/21/ through 08/14/ through 11/01/ 11/02/2015 to
2008 2011 2015 present
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 9 (Section 6(c) of For any person $130,000 $1,000,000 $1,025,000 $1,162,183
the Commodity Exchange Act). other than a
registered
entity \1\.
7 U.S.C. 13a (Section 6b of For a registered 625,000 1,000,000 1,025,000 1,162,183
the Commodity Exchange Act). entity \1\ or
any of its
directors,
officers or
employees.
----------------------------------------------------------------------------------------------------------------
[[Page 9429]]
Civil Monetary Penalty Imposed by a Federal District Court In a Civil Injunctive Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 13a-1 (Section 6c of Any Person...... 130,000 1,000,000 1,025,000 1,162,183
the Commodity Exchange Act).
----------------------------------------------------------------------------------------------------------------
\1\ The term ``registered entity'' is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
Issued in Washington, DC, on February 28, 2018, by the
Commission.
Robert N. Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Adjustment of Civil Monetary Penalties for Inflation--
2018--Commission Voting Summary
On this matter, Chairman Giancarlo and Commissioners Quintenz
and Behnam voted in the affirmative. No Commissioner voted in the
negative.
[FR Doc. 2018-04480 Filed 3-5-18; 8:45 am]
BILLING CODE 6351-01-P
