Civil Monetary Penalty Inflation Adjustment, 2052-2056 [2019-01123]
Download as PDF
<![CDATA[
2052
Federal Register / Vol. 84, No. 25 / Wednesday, February 6, 2019 / Rules and Regulations
Board calculated the adjusted penalties
for its CMPs, rounding the penalties to
the nearest dollar.5
Administrative Procedure Act
The 2015 Act states that agencies
shall make the annual adjustment
‘‘notwithstanding section 553 of title 5,
United States Code.’’ Therefore, this
rule is not subject to the provisions of
the Administrative Procedure Act (the
‘‘APA’’), 5 U.S.C. 553, requiring notice,
public participation, and a deferred
effective date.
Regulatory Flexibility Act
The Regulatory Flexibility Act, 5
U.S.C. 601 et seq., requires a regulatory
flexibility analysis only for rules for
which an agency is required to publish
a general notice of proposed
rulemaking. Because the 2015 Act states
that agencies’ annual adjustments are to
be made notwithstanding section 553 of
title 5 of the United States Code—the
APA section requiring notice of
proposed rulemaking—the Board is not
publishing a notice of proposed
rulemaking. Therefore, the Regulatory
Flexibility Act does not apply.
Paperwork Reduction Act
There is no collection of information
required by this final rule that would be
subject to the Paperwork Reduction Act
of 1995, 44 U.S.C. 3501 et seq.
List of Subjects in 12 CFR Part 263
Administrative practice and
procedure, Claims, Crime, Equal access
to justice, Lawyers, Penalties.
Authority and Issuance
For the reasons set forth in the
preamble, the Board amends 12 CFR
part 263 to read as follows:
PART 263—RULES OF PRACTICE FOR
HEARINGS
1. The authority citation for part 263
continues to read as follows:
■
amozie on DSK3GDR082PROD with RULES
Authority: 5 U.S.C. 504, 554–557; 12
U.S.C. 248, 324, 334, 347a, 504, 505, 1464,
1467, 1467a, 1817(j), 1818, 1820(k), 1829,
1831o, 1831p–1, 1832(c), 1847(b), 1847(d),
1884, 1972(2)(F), 3105, 3108, 3110, 3349,
3907, 3909(d), 4717; 15 U.S.C. 21, 78l(i),
78o–4, 78o–5, 78u–2; 1639e(k); 28 U.S.C.
to the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015 (Dec. 14, 2018).
5 Under the 2015 Act and implementing OMB
guidance, agencies are not required to make an
adjustment to a CMP if, during the 12 months
preceding the required adjustment, such penalty
increased due to a law other than the 2015 Act by
an amount greater than the amount of the required
adjustment. No other laws have adjusted the CMPs
within the Board’s jurisdiction during the preceding
12 months.
VerDate Sep<11>2014
16:19 Feb 05, 2019
Jkt 247001
2461 note; 31 U.S.C. 5321; and 42 U.S.C.
4012a.
2. Section 263.65 is revised to read as
follows:
■
§ 263.65 Civil money penalty inflation
adjustments.
(a) Inflation adjustments. In
accordance with the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015, which
further amended the Federal Civil
Penalties Inflation Adjustment Act of
1990, the Board has set forth in
paragraph (b) of this section the
adjusted maximum amounts for each
civil money penalty provided by law
within the Board’s jurisdiction. The
authorizing statutes contain the
complete provisions under which the
Board may seek a civil money penalty.
The adjusted civil money penalties
apply only to penalties assessed on or
after February 6, 2019, whose associated
violations occurred on or after
November 2, 2015.
(b) Maximum civil money penalties.
The maximum (or, in the cases of 12
U.S.C. 334 and 1832(c), fixed) civil
money penalties as set forth in the
referenced statutory sections are set
forth in the table in this paragraph (b).
Adjusted civil
money penalty
Statute
12 U.S.C. 324.
Inadvertently late or misleading reports, inter
alia .............................
Other late or misleading
reports, inter alia ........
Knowingly or reckless
false or misleading reports, inter alia ...........
12 U.S.C. 334 .......................
12 U.S.C. 374a .....................
12 U.S.C. 504.
First Tier ........................
Second Tier ...................
Third Tier .......................
12 U.S.C. 505.
First Tier ........................
Second Tier ...................
Third Tier .......................
12 U.S.C. 1464(v)(4) ............
12 U.S.C. 1464(v)(5) ............
12 U.S.C. 1464(v)(6) ............
12 U.S.C. 1467a(i)(2) ...........
12 U.S.C. 1467a(i)(3) ...........
12 U.S.C. 1467a(r).
First Tier ........................
Second Tier ...................
Third Tier .......................
12 U.S.C. 1817(j)(16).
First Tier ........................
Second Tier ...................
Third Tier .......................
12 U.S.C. 1818(i)(2).
First Tier ........................
Second Tier ...................
Third Tier .......................
12 U.S.C. 1820(k)(6)(A)(ii) ...
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
Statute
Adjusted civil
money penalty
12 U.S.C. 1832(c) .................
12 U.S.C. 1847(b) ................
12 U.S.C. 1847(d).
First Tier ........................
Second Tier ...................
Third Tier .......................
12 U.S.C. 1884 .....................
12 U.S.C. 1972(2)(F).
First Tier ........................
Second Tier ...................
Third Tier .......................
12 U.S.C. 3110(a) ................
12 U.S.C. 3110(c).
First Tier ........................
Second Tier ...................
Third Tier .......................
12 U.S.C. 3909(d) ................
15 U.S.C. 78u–2(b)(1).
For a natural person ......
For any other person .....
15 U.S.C. 78u–2(b)(2).
For a natural person ......
For any other person .....
15 U.S.C. 78u–2(b)(3).
For a natural person ......
For any other person .....
15 U.S.C. 1639e(k)(1) ..........
15 U.S.C. 1639e(k)(2) ..........
42 U.S.C. 4012a(f)(5) ...........
32,924
50,334
4,027
40,269
2,013,399
292
10,067
50,334
2,013,399
46,013
3,682
36,809
1,840,491
2,505
9,472
94,713
94,713
473,566
189,427
947,130
11,563
23,125
2,187
By order of the Board of Governors of the
Federal Reserve System, acting through the
Secretary of the Board under delegated
authority, January 29, 2019.
Ann Misback,
Secretary of the Board.
[FR Doc. 2019–01068 Filed 2–5–19; 8:45 am]
$4,027
BILLING CODE 6210–01–P
40,269
NATIONAL CREDIT UNION
ADMINISTRATION
2,013,399
292
292
12 CFR Part 747
10,067
50,334
2,013,399
Civil Monetary Penalty Inflation
Adjustment
10,067
50,334
2,013,399
4,027
40,269
2,013,399
50,334
50,334
4,027
340,269
2,013,399
10,067
50,334
32,013,399
10,067
50,334
2,013,399
331,174
RIN 3133–AE92
National Credit Union
Administration (NCUA).
ACTION: Final rule.
AGENCY:
The NCUA Board (Board) is
amending its regulations to adjust the
maximum amount of each civil
monetary penalty (CMP) within its
jurisdiction to account for inflation.
This action, including the amount of the
adjustments, is required under the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Debt Collection Improvement Act of
1996 and the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015.
DATES: This final rule is effective
February 6, 2019.
SUMMARY:
E:\FR\FM\06FER1.SGM
06FER1
Federal Register / Vol. 84, No. 25 / Wednesday, February 6, 2019 / Rules and Regulations
FOR FURTHER INFORMATION CONTACT:
Marvin Shaw, Staff Attorney, at 1775
Duke Street, Alexandria, VA 22314, or
telephone: (703) 518–6553.
SUPPLEMENTARY INFORMATION:
I. Legal Background
II. Calculation of Adjustments
III. Regulatory Procedures
I. Legal Background
A. Statutory Requirements and OMB
Guidance
The Debt Collection Improvement Act
of 1996 1 (DCIA) amended the Federal
Civil Penalties Inflation Adjustment Act
of 1990 2 (FCPIA Act) to require every
federal agency to enact regulations that
adjust each CMP provided by law under
its jurisdiction by the rate of inflation at
least once every four years.
In November 2015, Congress further
amended the CMP inflation
requirements in the Bipartisan Budget
Act of 2015,3 which contains the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the 2015 amendments).4 This
legislation provided for an initial
‘‘catch-up’’ adjustment of CMPs in 2016,
followed by annual adjustments. The
catch-up adjustment reset CMP
maximum amounts by setting aside the
inflation adjustments that agencies
made in prior years and instead
calculated inflation with reference to
the year when each CMP was enacted or
last modified by Congress. Agencies
were required to publish their catch-up
adjustments in an interim final rule by
July 1, 2016 and make them effective by
August 1, 2016.5 The NCUA complied
with these requirements in a June 2016
interim final rule, followed by an
October 2016 final rule to confirm the
adjustments as final.6
amozie on DSK3GDR082PROD with RULES
The 2015 amendments also specified
how agencies must conduct annual
inflation adjustments after the 2016
catch-up adjustment. Following the
catch-up adjustment, agencies must
make the required adjustments and
publish them in the Federal Register by
1 Public Law 104–134, Sec. 31001(s), 110 Stat.
1321–373 (Apr. 26, 1996). The law is codified at 28
U.S.C. 2461 note.
2 Public Law 101–410, 104 Stat. 890 (Oct. 5,
1990), codified at 28 U.S.C. 2461 note.
3 Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015).
4 129 Stat. 599.
5 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584,
599 (Nov. 2, 2015).
6 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov.
7, 2016).
VerDate Sep<11>2014
21:15 Feb 05, 2019
Jkt 247001
January 15 each year.7 For 2017, the
NCUA issued an interim final rule on
January 6, 2017,8 followed by a final
rule issued on June 23, 2017.9 For 2018,
the NCUA issued a final rule to satisfy
the agency’s requirement for the 2018
annual adjustments.10 This document
satisfies the agency’s requirement for
the 2019 annual adjustment.
The law provides that the adjustments
shall be made notwithstanding the
section of the Administrative Procedure
Act (APA) that requires prior notice and
public comment for agency
rulemaking.11 The 2015 amendments
also specify that each CMP maximum
must be increased by the percentage by
which the consumer price index for
urban consumers (CPI–U) 12 for October
of the year immediately preceding the
year the adjustment is made exceeds the
CPI–U for October of the prior year.13
For example, for the adjustment to be
made in 2019, an agency must compare
the October 2017 and 2018 CPI–U
figures.
The 2015 amendments also provide
that agencies may forgo the required
annual adjustments in certain
circumstances. Specifically, in a
subsection titled ‘‘Other Adjustments
Made,’’ the statute provides that an
agency is not required to make an
annual adjustment to a CMP if it has
been increased by an amount greater
than the contemplated annual
adjustment in the preceding 12
months.14 When these criteria are met,
the agency has discretion not to make
the adjustments otherwise required by
the statute.
In addition, the 2015 amendments
directed the Office of Management and
Budget (OMB) to issue guidance to
agencies on implementing the inflation
adjustments.15 OMB is required to issue
its guidance each December and, with
respect to the 2019 annual adjustment,
did so on December 14, 2018.16 This
7 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584,
599 (Nov. 2, 2015).
8 82 FR 7640 (Jan. 23, 2017).
9 82 FR 29710 (June 30, 2017).
10 83 FR 2029 (Jan.16, 2018).
11 Public Law 114–74, Sec. 701(b)(1), 129 Stat.
584, 599 (Nov. 2, 2015).
12 This index is published by the Department of
Labor, Bureau of Labor Statistics, and is available
at its website: https://www.bls.gov/cpi/.
13 Public Law 114–74, Sec. 701(b)(1)(2)(B), 129
Stat. 584, 600 (Nov. 2, 2015).
14 Public Law 114–74, Sec. 701(b)(1), 129 Stat.
584, 600 (Nov. 2, 2015).
15 Public Law 114–74, Sec. 701(b)(4), 129 Stat.
584, 601 (Nov. 2, 2015).
16 OMB, Implementation of Penalty Inflation
Adjustments for 2019, Pursuant to the Federal Civil
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
2053
OMB guidance for the 2019 adjustments
includes an inflationary multiplier
(1.02522) to apply to each current CMP
maximum amount to determine the
adjusted maximum. The guidance also
addresses rulemaking procedures and
agency reporting and oversight
requirements for CMPs.17
B. Application to the 2019 Adjustments
This section applies the statutory
requirements and OMB’s guidance to
the NCUA’s CMPs, and sets forth the
Board’s calculation of the 2019
adjustments.
As explained above, the 2015
amendments require the NCUA to adjust
the maximum amounts of its CMPs by
the percentage by which the October
2018 CPI–U (252.885) exceeds the
October 2017 CPI–U (246.663). The
percentage change is 2.522. This
percentage increase can be expressed as
an inflation multiplier (the quotient of
the October 2018 figure divided by the
October 2017 figure). Accordingly, each
CMP maximum amount should be
multiplied by 1.02522 to determine the
adjusted maximum amount. OMB’s
guidance identifies the same multiplier.
The Board has considered the
exception in the 2015 amendments for
adjustments made in the preceding 12
months, discussed above, and has
determined that it does not apply. All of
the adjustments calculated below are
equal to or greater than the adjustments
made in January 2018 for each CMP.
Accordingly, the exception for greater
adjustments in the preceding 12 months
does not apply. Thus, the Board lacks
discretion to decline to make the
adjustments calculated below.
The table below presents the
adjustment calculations. The current
maximums are found at 12 CFR
747.1001, as adjusted in January 2018.
This amount is multiplied by the
inflation multiplier to calculate the new
maximum in the far right column. Only
these adjusted maximum amounts, and
not the calculations, will be codified at
12 CFR 747.1001 under this final rule.
The adjusted amounts were applicable
January 15, 2019, and can be applied to
violations that occurred on or after
November 2, 2015, the date the 2015
amendments were enacted.18
Penalties Inflation Adjustment Act Improvements
Act of 2015 (Dec. 14, 2018), available at https://
www.whitehouse.gov/wp-content/uploads/2017/11/
m_19_04.pdf.
17 Id.
18 Public Law 114–74, 129 Stat. 600 (Nov. 2,
2015), codified at 28 U.S.C. 2461 note.
E:\FR\FM\06FER1.SGM
06FER1
2054
Federal Register / Vol. 84, No. 25 / Wednesday, February 6, 2019 / Rules and Regulations
TABLE—CALCULATION OF MAXIMUM CMP ADJUSTMENTS
Description/tier 19
Current maximum ($)
12 U.S.C. 1782(a)(3) ..........
Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report.
Non-inadvertent failure to submit a report or
the non-inadvertent submission of a false or
misleading report.
Failure to submit a report or the submission of
a false or misleading report done knowingly
or with reckless disregard.
Tier 1 CMP for inadvertent failure to submit
certified statement of insured shares and
charges due to NCUSIF, or inadvertent
submission of false or misleading statement.
Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of
false or misleading statement.
Tier 3 CMP for failure to submit a certified
statement or the submission of a false or
misleading statement done knowingly or
with reckless disregard.
Non-compliance with insurance logo requirements.
Non-compliance with NCUA security requirements.
Tier 1 CMP for violations of law, regulation,
and other orders or agreements.
Tier 2 CMP for violations of law, regulation,
and other orders or agreements and for
recklessly engaging in unsafe or unsound
practices or breaches of fiduciary duty.
Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (natural person).
Tier 3 (same) (CU) ...........................................
3,928 ...........................
1.02522
4,027.
39.278 .........................
1.02522
40,269.
Lesser of 1,963,870 or
1% of total CU assets.
3,591 ...........................
1.02522
1.02522
Lesser of 2,013,399 or
1% of total CU assets.
3,682.
35,904 .........................
1.02522
36,809.
Lesser of 1,795,216 or
1% of total CU assets.
1.02522
Lesser of
1,840,491 or 1% of
total CU assets.
122 ..............................
1.02522
125.
285 ..............................
1.02522
292.
9,819 ...........................
1.02522
10,067.
49,096 .........................
1.02522
50,334.
1,963,870 ....................
1.02522
2,013,399.
Lesser of 1,963,870 or
1% of total CU assets.
323,027 .......................
1.02522
1.02522
Lesser of 2,013,399 or
1% of total CU assets.
331,174.
11,279 .........................
1.02522
11,563.
22,556 .........................
2,133 ...........................
1.02522
1.02522
23,125.
2,187.
12 U.S.C. 1782(a)(3) ..........
12 U.S.C. 1782(a)(3) ..........
12 U.S.C. 1782(d)(2)(A) .....
12 U.S.C. 1782(d)(2)(B) .....
12 U.S.C. 1782(d)(2)(C) .....
12 U.S.C. 1785(a)(3) ..........
12 U.S.C. 1785(e)(3) ..........
12 U.S.C. 1786(k)(2)(A) .....
12 U.S.C. 1786(k)(2)(B) .....
12 U.S.C. 1786(k)(2)(C) .....
12 U.S.C. 1786(k)(2)(C) .....
12 U.S.C. 1786(w)(5)(A)(ii)
15 U.S.C. 1639e(k) .............
15 U.S.C. 1639e(k) .............
42 U.S.C. 4012a(f)(5) .........
Non-compliance with senior examiner postemployment restrictions.
Non-compliance with appraisal independence
standards (first violation).
Subsequent violations of the same .................
Non-compliance with flood insurance requirements.
III. Regulatory Procedures
A. Final Rule Under the APA
In the 2015 amendments to the FCPIA
Act, Congress provided that agencies
shall make the required inflation
adjustments in 2017 and subsequent
years notwithstanding 5 U.S.C. 553,20
which requires agencies to follow
notice-and-comment procedures in
rulemaking and to make rules effective
no sooner than 30 days after publication
in the Federal Register. The 2015
amendments provide a clear exception
to these requirements.21 In addition, the
Board finds that notice-and-comment
amozie on DSK3GDR082PROD with RULES
Adjusted Maximum ($)
(current maximum ×
multiplier, rounded to
nearest dollar)
Citation
19 The table uses condensed descriptions of CMP
tiers. Refer to the U.S. Code citations for complete
descriptions.
20 Public Law 114–74, Sec. 701(b)(1), 129 Stat.
584, 599 (Nov. 2, 2015).
21 See 5 U.S.C. 559; Asiana Airlines v. Fed.
Aviation Admin., 134 F.3d 393, 396–99 (D.C. Cir.
1998).
VerDate Sep<11>2014
21:15 Feb 05, 2019
Jkt 247001
procedures would be impracticable and
unnecessary under the APA because of
the largely ministerial and technical
nature of the rule, which affords
agencies limited discretion in
promulgating the rule, and the statutory
deadline for making the adjustments.22
In these circumstances, the Board finds
good cause to issue a final rule without
issuing a notice of proposed rulemaking
or soliciting public comments. The
Board also finds good cause to make the
final rule effective upon publication
because of the statutory deadline.
Accordingly, this final rule is issued
without prior notice and comment and
will become effective immediately upon
publication.
22 5 U.S.C. 553(b)(3)(B); see Mid-Tex Elec. Co-op.,
Inc. v. Fed. Energy Regulatory Comm’n, 822 F.2d
1123, (D.C. Cir. 1987).
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
Multiplier
B. Regulatory Flexibility Act
The Regulatory Flexibility Act
requires the Board to prepare an
analysis to describe any significant
economic impact a regulation may have
on a substantial number of small
entities.23 For purposes of this analysis,
the Board considers small credit unions
to be those having under $100 million
in assets.24 This final rule will not have
a significant economic impact on a
substantial number of small credit
unions because it only affects the
maximum amounts of CMPs that may be
assessed in individual cases, which are
not numerous and generally do not
involve assessments at the maximum
level. In addition, several of the CMPs
23 5
U.S.C. 603(a).
Ruling and Policy Statement 15–1,
80 FR 57512 (Sept. 24, 2015).
24 Interpretive
E:\FR\FM\06FER1.SGM
06FER1
Federal Register / Vol. 84, No. 25 / Wednesday, February 6, 2019 / Rules and Regulations
are limited to a percentage of a credit
union’s assets. Finally, in assessing
CMPs, the Board generally must
consider a party’s financial resources.25
Because this final rule will affect few, if
any, small credit unions, the Board
certifies that the final rule will not have
a significant economic impact on a
substantial number of small entities.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA) applies to rulemakings in which
an agency creates a new paperwork
burden on regulated entities or modifies
an existing burden.26 For purposes of
the PRA, a paperwork burden may take
the form of either a reporting or a
recordkeeping requirement, both
referred to as information collections.
This final rule adjusts the maximum
amounts of certain CMPs that the Board
may assess against individuals, entities,
or credit unions but does not require
any reporting or recordkeeping.
Therefore, this final rule will not create
new paperwork burdens or modify any
existing paperwork burdens.
U.S. Code citation
CMP description
(1) 12 U.S.C. 1782(a)(3) ......
Inadvertent failure to submit a report or the inadvertent
submission of a false or misleading report.
Non-inadvertent failure to submit a report or the non-inadvertent submission of a false or misleading report.
Failure to submit a report or the submission of a false
or misleading report done knowingly or with reckless
disregard.
Tier 1 CMP for inadvertent failure to submit certified
statement of insured shares and charges due to
NCUSIF, or inadvertent submission of false or misleading statement.
Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of false or misleading
statement.
Tier 3 CMP for failure to submit a certified statement or
the submission of a false or misleading statement
done knowingly or with reckless disregard.
Non-compliance with insurance logo requirements ........
Non-compliance with NCUA security requirements ........
Tier 1 CMP for violations of law, regulation, and other
orders or agreements.
(6) 12 U.S.C. 1782(d)(2)(C)
(7) 12 U.S.C. 1785(a)(3) ......
(8) 12 U.S.C. 1785(e)(3) ......
(9) 12 U.S.C. 1786(k)(2)(A)
25 12
26 44
U.S.C. 1786(k)(2)(G)(i).
U.S.C. 3507(d); 5 CFR part 1320.
VerDate Sep<11>2014
16:19 Feb 05, 2019
Jkt 247001
By the National Credit Union
Administration Board on January 4, 2019.
Gerard S. Poliquin,
Secretary of the Board.
For the reasons stated above, the
NCUA Board amends 12 CFR part 747
as follows:
PART 747—ADMINISTRATIVE
ACTIONS, ADJUDICATIVE HEARINGS,
RULES OF PRACTICE AND
PROCEDURE, AND INVESTIGATIONS
Authority: 12 U.S.C. 1766, 1782, 1784,
1785, 1786, 1787, 1790a, 1790d; 15 U.S.C.
1639e; 42 U.S.C. 4012a; Public Law 101–410;
Public Law 104–134; Public Law 109–351;
Public Law 114–74.
The Small Business Regulatory
Enforcement Fairness Act of 1996 28
(SBREFA) provides generally for
congressional review of agency rules. A
reporting requirement is triggered in
instances where the Board issues a final
rule as defined by Section 551 of the
APA.29 The Board has submitted this
final rule to OMB for it to determine
whether it is a ‘‘major rule’’ within the
meaning of the relevant sections of
(5) 12 U.S.C. 1782(d)(2)(B)
Credit unions, Civil monetary
penalties.
The Board has determined that this
final rule will not affect family wellbeing within the meaning of Section 654
of the Treasury and General
Government Appropriations Act,
1999.27
Executive Order 13132 encourages
independent regulatory agencies to
consider the impact of their actions on
state and local interests. In adherence to
fundamental federalism principles, the
NCUA, an independent regulatory
agency as defined in 44 U.S.C. 3502(5),
voluntarily complies with the executive
order. This final rule adjusts the
maximum amounts of certain CMPs that
the Board may assess against
(4) 12 U.S.C. 1782(d)(2)(A)
List of Subjects in 12 CFR Part 747
■
D. Executive Order 13132
(3) 12 U.S.C. 1782(a)(3) ......
SBREFA, but the Board does not believe
the rule is major.
E. Assessment of Federal Regulations
and Policies on Families
F. Small Business Regulatory
Enforcement Fairness Act
(2) 12 U.S.C. 1782(a)(3) ......
amozie on DSK3GDR082PROD with RULES
individuals, entities, and federally
insured credit unions, including statechartered credit unions. However, the
final rule does not create any new
authority or alter the underlying
statutory authorities that enable the
Board to assess CMPs. Accordingly, this
final rule will not have a substantial
direct effect on the states, on the
connection between the national
government and the states, or on the
distribution of power and
responsibilities among the various
levels of government. The Board has
determined that this final rule does not
constitute a policy that has federalism
implications for purposes of the
executive order.
2055
Frm 00009
Fmt 4700
2. Revise § 747.1001 to read as
follows:
■
§ 747.1001 Adjustment of civil monetary
penalties by the rate of inflation.
(a) The NCUA is required by the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410, 104 Stat. 890, as amended (28
U.S.C. 2461 note)), to adjust the
maximum amount of each civil
monetary penalty within its jurisdiction
by the rate of inflation. The following
chart displays those adjusted amounts,
as calculated pursuant to the statute:
New maximum amount
$4,027.
$40,269.
$2,013,399 or 1 percent of the total assets of the credit
union, whichever is less.
$3,682.
$36,809.
$1,840,491 or 1 percent of the total assets of the credit
union, whichever is less.
$125.
$292.
$10,067.
27 Public Law 105–277, 112 Stat. 2681 (Oct. 21,
1998).
PO 00000
1. The authority for part 747
continues to read as follows:
Sfmt 4700
28 Public Law 104–121, 110 Stat. 857 (Mar. 29,
1996).
29 5 U.S.C. 551.
E:\FR\FM\06FER1.SGM
06FER1
2056
Federal Register / Vol. 84, No. 25 / Wednesday, February 6, 2019 / Rules and Regulations
U.S. Code citation
CMP description
(10) 12 U.S.C. 1786(k)(2)(A)
Tier 2 CMP for violations of law, regulation, and other
orders or agreements and for recklessly engaging in
unsafe or unsound practices or breaches of fiduciary
duty.
Tier 3 CMP for knowingly committing the violations
under Tier 1 or 2 (natural person).
Tier 3 CMP for knowingly committing the violations
under Tier 1 or 2 (insured credit union).
Non-compliance with senior examiner post-employment
restrictions.
Non-compliance with appraisal independence requirements.
Non-compliance with flood insurance requirements .......
(11) 12 U.S.C. 1786(k)(2)(A)
(12) 12 U.S.C. 1786(k)(2)(A)
(13) 12 U.S.C. 1786(w)(5)(ii)
(14) 15 U.S.C. 1639e(k) ......
(15) 42 U.S.C. 4012a(f)(5) ...
(b) The adjusted amounts displayed in
paragraph (a) of this section apply to
civil monetary penalties that are
assessed after the date the increase takes
effect, including those whose associated
violation or violations pre-dated the
increase and occurred after November 2,
2015.
[FR Doc. 2019–01123 Filed 2–5–19; 8:45 am]
BILLING CODE 7535–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 19
[FRL–9988–90–OAR–OECA]
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
The Environmental Protection
Agency (EPA) is promulgating this final
rule to adjust the level of the maximum
(or minimum) statutory civil monetary
penalty amounts under the statutes EPA
administers. This action is mandated by
the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended
through the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015 (‘‘the 2015 Act’’). The 2015
Act prescribes a formula for annually
adjusting the statutory maximum (or
minimum) amount of civil penalties to
reflect inflation, maintain the deterrent
effect of statutory civil penalties, and
promote compliance with the law. The
rule does not necessarily revise the
penalty amounts that EPA chooses to
seek pursuant to its civil penalty
policies in a particular case. EPA’s civil
penalty policies, which guide
enforcement personnel on how to
exercise EPA’s statutory penalty
authorities, take into account a number
of fact-specific considerations, e.g., the
seriousness of the violation, the
amozie on DSK3GDR082PROD with RULES
VerDate Sep<11>2014
16:19 Feb 05, 2019
Jkt 247001
$50,334.
$2,013,399.
$2,013,399 or 1 percent of the total assets of the credit
union, whichever is less.
$331,174.
First violation: $11,563 Subsequent violations: $23,125.
$2,187.
violator’s good faith efforts to comply,
any economic benefit gained by the
violator as a result of its noncompliance,
and a violator’s ability to pay.
DATES: This final rule is effective
February 6, 2019, and applicable
beginning January 15, 2019.
FOR FURTHER INFORMATION, CONTACT:
David Smith-Watts, Office of Civil
Enforcement, Office of Enforcement and
Compliance Assurance, Mail Code
2241A, Environmental Protection
Agency, 1200 Pennsylvania Avenue
NW, Washington, DC 20460, telephone
number: (202) 564–4083; smithwatts.david@epa.gov.
SUPPLEMENTARY INFORMATION:
I. Background
Civil Monetary Penalty Inflation
Adjustment Rule
SUMMARY:
New maximum amount
Since 1990, federal agencies have
been required to issue regulations
adjusting for inflation the statutory civil
penalties 1 that can be imposed under
the laws administered by that agency.
The Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Debt Collection Improvement Act of
1996 (DCIA), required agencies to
review their statutory civil penalties
every 4 years, and to adjust the statutory
civil penalty amounts for inflation if the
increase met the DCIA’s adjustment
methodology. In accordance with the
DCIA, EPA reviewed and, as
appropriate, adjusted the civil penalty
levels under each of the statutes the
agency implements in 1996 (61 FR
69360), 2004 (69 FR 7121), 2008 (73 FR
75340), and 2013 (78 FR 66643).
The 2015 Act 2 required each federal
agency to adjust the level of statutory
1 The Federal Civil Penalties Inflation Adjustment
Act of 1990, Public Law 101–410, 28 U.S.C. 2461
note, defines ‘‘civil monetary penalty’’ as ‘‘any
penalty, fine, or other sanction that—(A)(i) is for a
specific monetary amount as provided by Federal
law; or (ii) has a maximum amount provided for by
Federal law; and (B) is assessed or enforced by an
agency pursuant to Federal law; and (C) is assessed
or enforced pursuant to an administrative
proceeding or a civil action in the Federal courts.’’
2 The Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015 (Section 701 of Pub.
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
civil penalties under the laws
implemented by that agency with an
initial ‘‘catch-up’’ adjustment through
an interim final rulemaking. The 2015
Act also required federal agencies,
beginning on January 15, 2017, to make
subsequent annual adjustments for
inflation. Section 4 of the 2015 Act
requires each federal agency to publish
these annual adjustments by January 15
of each year. The purpose of the 2015
Act is to maintain the deterrent effect of
civil penalties by translating originally
enacted statutory civil penalty amounts
to today’s dollars and rounding
statutory civil penalties to the nearest
dollar.
As required by the 2015 Act, EPA
issued a catch-up rule on July 1, 2016,
which was effective August 1, 2016 (81
FR 43091). EPA made its first annual
adjustment on January 12, 2017, which
was effective on January 15, 2017 (82 FR
3633). EPA made its second annual
adjustment on January 10, 2018, which
was effective on January 15, 2018 (83 FR
1190). Today’s rule implements the
third annual adjustment mandated by
the 2015 Act.
The 2015 Act describes the method
for calculating the adjustments. Each
statutory maximum and minimum 3
civil monetary penalty is multiplied by
the cost-of-living adjustment, which is
L. 114–74) was signed into law on Nov. 2, 2015, and
further amended the Federal Civil Penalties
Inflation Adjustment Act of 1990.
3 Under Section 3(2)(A) of the 2015 Act, ‘‘civil
monetary penalty’’ means ‘‘a specific monetary
amount as provided by Federal law’’; or ‘‘has a
maximum amount provided for by Federal law.’’
EPA-administered statutes generally refer to
statutory maximum penalties, with the following
exceptions: Section 311(b)(7)(D) of the Clean Water
Act, 33 U.S.C. 1321(b)(7)(D), refers to a minimum
penalty of ‘‘not less than $100,000 . . .’’; Section
104B(d)(1) of the Marine Protection, Research, and
Sanctuaries Act, 33 U.S.C. 1414b(d)(1), refers to an
exact penalty of $600 ‘‘[f]or each dry ton (or
equivalent) of sewage sludge or industrial waste
dumped or transported by the person in violation
of this subsection in calendar year 1992 . . .’’; and
Section 325(d)(1) of the Emergency Planning and
Community Right-to-Know Act, 42 U.S.C.
11045(d)(1), refers to an exact civil penalty of
$25,000 for each frivolous trade secret claim.
E:\FR\FM\06FER1.SGM
06FER1
]]>Agencies
[Federal Register Volume 84, Number 25 (Wednesday, February 6, 2019)]
[Rules and Regulations]
[Pages 2052-2056]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01123]
=======================================================================
-----------------------------------------------------------------------
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 747
RIN 3133-AE92
Civil Monetary Penalty Inflation Adjustment
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The NCUA Board (Board) is amending its regulations to adjust
the maximum amount of each civil monetary penalty (CMP) within its
jurisdiction to account for inflation. This action, including the
amount of the adjustments, is required under the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Debt
Collection Improvement Act of 1996 and the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015.
DATES: This final rule is effective February 6, 2019.
[[Page 2053]]
FOR FURTHER INFORMATION CONTACT: Marvin Shaw, Staff Attorney, at 1775
Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6553.
SUPPLEMENTARY INFORMATION:
I. Legal Background
II. Calculation of Adjustments
III. Regulatory Procedures
I. Legal Background
A. Statutory Requirements and OMB Guidance
The Debt Collection Improvement Act of 1996 \1\ (DCIA) amended the
Federal Civil Penalties Inflation Adjustment Act of 1990 \2\ (FCPIA
Act) to require every federal agency to enact regulations that adjust
each CMP provided by law under its jurisdiction by the rate of
inflation at least once every four years.
---------------------------------------------------------------------------
\1\ Public Law 104-134, Sec. 31001(s), 110 Stat. 1321-373 (Apr.
26, 1996). The law is codified at 28 U.S.C. 2461 note.
\2\ Public Law 101-410, 104 Stat. 890 (Oct. 5, 1990), codified
at 28 U.S.C. 2461 note.
---------------------------------------------------------------------------
In November 2015, Congress further amended the CMP inflation
requirements in the Bipartisan Budget Act of 2015,\3\ which contains
the Federal Civil Penalties Inflation Adjustment Act Improvements Act
of 2015 (the 2015 amendments).\4\ This legislation provided for an
initial ``catch-up'' adjustment of CMPs in 2016, followed by annual
adjustments. The catch-up adjustment reset CMP maximum amounts by
setting aside the inflation adjustments that agencies made in prior
years and instead calculated inflation with reference to the year when
each CMP was enacted or last modified by Congress. Agencies were
required to publish their catch-up adjustments in an interim final rule
by July 1, 2016 and make them effective by August 1, 2016.\5\ The NCUA
complied with these requirements in a June 2016 interim final rule,
followed by an October 2016 final rule to confirm the adjustments as
final.\6\
---------------------------------------------------------------------------
\3\ Public Law 114-74, 129 Stat. 584 (Nov. 2, 2015).
\4\ 129 Stat. 599.
\5\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov.
2, 2015).
\6\ 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov. 7, 2016).
---------------------------------------------------------------------------
The 2015 amendments also specified how agencies must conduct annual
inflation adjustments after the 2016 catch-up adjustment. Following the
catch-up adjustment, agencies must make the required adjustments and
publish them in the Federal Register by January 15 each year.\7\ For
2017, the NCUA issued an interim final rule on January 6, 2017,\8\
followed by a final rule issued on June 23, 2017.\9\ For 2018, the NCUA
issued a final rule to satisfy the agency's requirement for the 2018
annual adjustments.\10\ This document satisfies the agency's
requirement for the 2019 annual adjustment.
---------------------------------------------------------------------------
\7\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov.
2, 2015).
\8\ 82 FR 7640 (Jan. 23, 2017).
\9\ 82 FR 29710 (June 30, 2017).
\10\ 83 FR 2029 (Jan.16, 2018).
---------------------------------------------------------------------------
The law provides that the adjustments shall be made notwithstanding
the section of the Administrative Procedure Act (APA) that requires
prior notice and public comment for agency rulemaking.\11\ The 2015
amendments also specify that each CMP maximum must be increased by the
percentage by which the consumer price index for urban consumers (CPI-
U) \12\ for October of the year immediately preceding the year the
adjustment is made exceeds the CPI-U for October of the prior year.\13\
For example, for the adjustment to be made in 2019, an agency must
compare the October 2017 and 2018 CPI-U figures.
---------------------------------------------------------------------------
\11\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov.
2, 2015).
\12\ This index is published by the Department of Labor, Bureau
of Labor Statistics, and is available at its website: https://www.bls.gov/cpi/.
\13\ Public Law 114-74, Sec. 701(b)(1)(2)(B), 129 Stat. 584, 600
(Nov. 2, 2015).
---------------------------------------------------------------------------
The 2015 amendments also provide that agencies may forgo the
required annual adjustments in certain circumstances. Specifically, in
a subsection titled ``Other Adjustments Made,'' the statute provides
that an agency is not required to make an annual adjustment to a CMP if
it has been increased by an amount greater than the contemplated annual
adjustment in the preceding 12 months.\14\ When these criteria are met,
the agency has discretion not to make the adjustments otherwise
required by the statute.
---------------------------------------------------------------------------
\14\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 600 (Nov.
2, 2015).
---------------------------------------------------------------------------
In addition, the 2015 amendments directed the Office of Management
and Budget (OMB) to issue guidance to agencies on implementing the
inflation adjustments.\15\ OMB is required to issue its guidance each
December and, with respect to the 2019 annual adjustment, did so on
December 14, 2018.\16\ This OMB guidance for the 2019 adjustments
includes an inflationary multiplier (1.02522) to apply to each current
CMP maximum amount to determine the adjusted maximum. The guidance also
addresses rulemaking procedures and agency reporting and oversight
requirements for CMPs.\17\
---------------------------------------------------------------------------
\15\ Public Law 114-74, Sec. 701(b)(4), 129 Stat. 584, 601 (Nov.
2, 2015).
\16\ OMB, Implementation of Penalty Inflation Adjustments for
2019, Pursuant to the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015 (Dec. 14, 2018), available at https://www.whitehouse.gov/wp-content/uploads/2017/11/m_19_04.pdf.
\17\ Id.
---------------------------------------------------------------------------
B. Application to the 2019 Adjustments
This section applies the statutory requirements and OMB's guidance
to the NCUA's CMPs, and sets forth the Board's calculation of the 2019
adjustments.
As explained above, the 2015 amendments require the NCUA to adjust
the maximum amounts of its CMPs by the percentage by which the October
2018 CPI-U (252.885) exceeds the October 2017 CPI-U (246.663). The
percentage change is 2.522. This percentage increase can be expressed
as an inflation multiplier (the quotient of the October 2018 figure
divided by the October 2017 figure). Accordingly, each CMP maximum
amount should be multiplied by 1.02522 to determine the adjusted
maximum amount. OMB's guidance identifies the same multiplier.
The Board has considered the exception in the 2015 amendments for
adjustments made in the preceding 12 months, discussed above, and has
determined that it does not apply. All of the adjustments calculated
below are equal to or greater than the adjustments made in January 2018
for each CMP. Accordingly, the exception for greater adjustments in the
preceding 12 months does not apply. Thus, the Board lacks discretion to
decline to make the adjustments calculated below.
The table below presents the adjustment calculations. The current
maximums are found at 12 CFR 747.1001, as adjusted in January 2018.
This amount is multiplied by the inflation multiplier to calculate the
new maximum in the far right column. Only these adjusted maximum
amounts, and not the calculations, will be codified at 12 CFR 747.1001
under this final rule. The adjusted amounts were applicable January 15,
2019, and can be applied to violations that occurred on or after
November 2, 2015, the date the 2015 amendments were enacted.\18\
---------------------------------------------------------------------------
\18\ Public Law 114-74, 129 Stat. 600 (Nov. 2, 2015), codified
at 28 U.S.C. 2461 note.
[[Page 2054]]
Table--Calculation of Maximum CMP Adjustments
----------------------------------------------------------------------------------------------------------------
Adjusted Maximum
($) (current
Current maximum maximum x
Citation Description/tier \19\ ($) Multiplier multiplier,
rounded to nearest
dollar)
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 1782(a)(3)........... Inadvertent failure to 3,928............. 1.02522 4,027.
submit a report or the
inadvertent submission
of a false or
misleading report.
12 U.S.C. 1782(a)(3)........... Non-inadvertent failure 39.278............ 1.02522 40,269.
to submit a report or
the non-inadvertent
submission of a false
or misleading report.
12 U.S.C. 1782(a)(3)........... Failure to submit a Lesser of 1.02522 Lesser of
report or the 1,963,870 or 1% 2,013,399 or 1%
submission of a false of total CU of total CU
or misleading report assets. assets.
done knowingly or with
reckless disregard.
12 U.S.C. 1782(d)(2)(A)........ Tier 1 CMP for 3,591............. 1.02522 3,682.
inadvertent failure to
submit certified
statement of insured
shares and charges due
to NCUSIF, or
inadvertent submission
of false or misleading
statement.
12 U.S.C. 1782(d)(2)(B)........ Tier 2 CMP for non- 35,904............ 1.02522 36,809.
inadvertent failure to
submit certified
statement or
submission of false or
misleading statement.
12 U.S.C. 1782(d)(2)(C)........ Tier 3 CMP for failure Lesser of 1.02522 Lesser of
to submit a certified 1,795,216 or 1% 1,840,491 or 1% of
statement or the of total CU total CU assets.
submission of a false assets.
or misleading
statement done
knowingly or with
reckless disregard.
12 U.S.C. 1785(a)(3)........... Non-compliance with 122............... 1.02522 125.
insurance logo
requirements.
12 U.S.C. 1785(e)(3)........... Non-compliance with 285............... 1.02522 292.
NCUA security
requirements.
12 U.S.C. 1786(k)(2)(A)........ Tier 1 CMP for 9,819............. 1.02522 10,067.
violations of law,
regulation, and other
orders or agreements.
12 U.S.C. 1786(k)(2)(B)........ Tier 2 CMP for 49,096............ 1.02522 50,334.
violations of law,
regulation, and other
orders or agreements
and for recklessly
engaging in unsafe or
unsound practices or
breaches of fiduciary
duty.
12 U.S.C. 1786(k)(2)(C)........ Tier 3 CMP for 1,963,870......... 1.02522 2,013,399.
knowingly committing
the violations under
Tier 1 or 2 (natural
person).
12 U.S.C. 1786(k)(2)(C)........ Tier 3 (same) (CU)..... Lesser of 1.02522 Lesser of
1,963,870 or 1% 2,013,399 or 1%
of total CU of total CU
assets. assets.
12 U.S.C. 1786(w)(5)(A)(ii).... Non-compliance with 323,027........... 1.02522 331,174.
senior examiner post-
employment
restrictions.
15 U.S.C. 1639e(k)............. Non-compliance with 11,279............ 1.02522 11,563.
appraisal independence
standards (first
violation).
15 U.S.C. 1639e(k)............. Subsequent violations 22,556............ 1.02522 23,125.
of the same.
42 U.S.C. 4012a(f)(5).......... Non-compliance with 2,133............. 1.02522 2,187.
flood insurance
requirements.
----------------------------------------------------------------------------------------------------------------
III. Regulatory Procedures
---------------------------------------------------------------------------
\19\ The table uses condensed descriptions of CMP tiers. Refer
to the U.S. Code citations for complete descriptions.
---------------------------------------------------------------------------
A. Final Rule Under the APA
In the 2015 amendments to the FCPIA Act, Congress provided that
agencies shall make the required inflation adjustments in 2017 and
subsequent years notwithstanding 5 U.S.C. 553,\20\ which requires
agencies to follow notice-and-comment procedures in rulemaking and to
make rules effective no sooner than 30 days after publication in the
Federal Register. The 2015 amendments provide a clear exception to
these requirements.\21\ In addition, the Board finds that notice-and-
comment procedures would be impracticable and unnecessary under the APA
because of the largely ministerial and technical nature of the rule,
which affords agencies limited discretion in promulgating the rule, and
the statutory deadline for making the adjustments.\22\ In these
circumstances, the Board finds good cause to issue a final rule without
issuing a notice of proposed rulemaking or soliciting public comments.
The Board also finds good cause to make the final rule effective upon
publication because of the statutory deadline. Accordingly, this final
rule is issued without prior notice and comment and will become
effective immediately upon publication.
---------------------------------------------------------------------------
\20\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov.
2, 2015).
\21\ See 5 U.S.C. 559; Asiana Airlines v. Fed. Aviation Admin.,
134 F.3d 393, 396-99 (D.C. Cir. 1998).
\22\ 5 U.S.C. 553(b)(3)(B); see Mid-Tex Elec. Co-op., Inc. v.
Fed. Energy Regulatory Comm'n, 822 F.2d 1123, (D.C. Cir. 1987).
---------------------------------------------------------------------------
B. Regulatory Flexibility Act
The Regulatory Flexibility Act requires the Board to prepare an
analysis to describe any significant economic impact a regulation may
have on a substantial number of small entities.\23\ For purposes of
this analysis, the Board considers small credit unions to be those
having under $100 million in assets.\24\ This final rule will not have
a significant economic impact on a substantial number of small credit
unions because it only affects the maximum amounts of CMPs that may be
assessed in individual cases, which are not numerous and generally do
not involve assessments at the maximum level. In addition, several of
the CMPs
[[Page 2055]]
are limited to a percentage of a credit union's assets. Finally, in
assessing CMPs, the Board generally must consider a party's financial
resources.\25\ Because this final rule will affect few, if any, small
credit unions, the Board certifies that the final rule will not have a
significant economic impact on a substantial number of small entities.
---------------------------------------------------------------------------
\23\ 5 U.S.C. 603(a).
\24\ Interpretive Ruling and Policy Statement 15-1, 80 FR 57512
(Sept. 24, 2015).
\25\ 12 U.S.C. 1786(k)(2)(G)(i).
---------------------------------------------------------------------------
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in
which an agency creates a new paperwork burden on regulated entities or
modifies an existing burden.\26\ For purposes of the PRA, a paperwork
burden may take the form of either a reporting or a recordkeeping
requirement, both referred to as information collections. This final
rule adjusts the maximum amounts of certain CMPs that the Board may
assess against individuals, entities, or credit unions but does not
require any reporting or recordkeeping. Therefore, this final rule will
not create new paperwork burdens or modify any existing paperwork
burdens.
---------------------------------------------------------------------------
\26\ 44 U.S.C. 3507(d); 5 CFR part 1320.
---------------------------------------------------------------------------
D. Executive Order 13132
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests. In
adherence to fundamental federalism principles, the NCUA, an
independent regulatory agency as defined in 44 U.S.C. 3502(5),
voluntarily complies with the executive order. This final rule adjusts
the maximum amounts of certain CMPs that the Board may assess against
individuals, entities, and federally insured credit unions, including
state-chartered credit unions. However, the final rule does not create
any new authority or alter the underlying statutory authorities that
enable the Board to assess CMPs. Accordingly, this final rule will not
have a substantial direct effect on the states, on the connection
between the national government and the states, or on the distribution
of power and responsibilities among the various levels of government.
The Board has determined that this final rule does not constitute a
policy that has federalism implications for purposes of the executive
order.
E. Assessment of Federal Regulations and Policies on Families
The Board has determined that this final rule will not affect
family well-being within the meaning of Section 654 of the Treasury and
General Government Appropriations Act, 1999.\27\
---------------------------------------------------------------------------
\27\ Public Law 105-277, 112 Stat. 2681 (Oct. 21, 1998).
---------------------------------------------------------------------------
F. Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act of 1996 \28\
(SBREFA) provides generally for congressional review of agency rules. A
reporting requirement is triggered in instances where the Board issues
a final rule as defined by Section 551 of the APA.\29\ The Board has
submitted this final rule to OMB for it to determine whether it is a
``major rule'' within the meaning of the relevant sections of SBREFA,
but the Board does not believe the rule is major.
---------------------------------------------------------------------------
\28\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996).
\29\ 5 U.S.C. 551.
---------------------------------------------------------------------------
List of Subjects in 12 CFR Part 747
Credit unions, Civil monetary penalties.
By the National Credit Union Administration Board on January 4,
2019.
Gerard S. Poliquin,
Secretary of the Board.
For the reasons stated above, the NCUA Board amends 12 CFR part 747
as follows:
PART 747--ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF
PRACTICE AND PROCEDURE, AND INVESTIGATIONS
0
1. The authority for part 747 continues to read as follows:
Authority: 12 U.S.C. 1766, 1782, 1784, 1785, 1786, 1787, 1790a,
1790d; 15 U.S.C. 1639e; 42 U.S.C. 4012a; Public Law 101-410; Public
Law 104-134; Public Law 109-351; Public Law 114-74.
0
2. Revise Sec. 747.1001 to read as follows:
Sec. 747.1001 Adjustment of civil monetary penalties by the rate of
inflation.
(a) The NCUA is required by the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note)), to adjust the maximum amount of each civil monetary
penalty within its jurisdiction by the rate of inflation. The following
chart displays those adjusted amounts, as calculated pursuant to the
statute:
------------------------------------------------------------------------
U.S. Code citation CMP description New maximum amount
------------------------------------------------------------------------
(1) 12 U.S.C. 1782(a)(3).... Inadvertent failure $4,027.
to submit a report
or the inadvertent
submission of a
false or misleading
report.
(2) 12 U.S.C. 1782(a)(3).... Non-inadvertent $40,269.
failure to submit a
report or the non-
inadvertent
submission of a
false or misleading
report.
(3) 12 U.S.C. 1782(a)(3).... Failure to submit a $2,013,399 or 1
report or the percent of the
submission of a total assets of the
false or misleading credit union,
report done whichever is less.
knowingly or with
reckless disregard.
(4) 12 U.S.C. 1782(d)(2)(A). Tier 1 CMP for $3,682.
inadvertent failure
to submit certified
statement of
insured shares and
charges due to
NCUSIF, or
inadvertent
submission of false
or misleading
statement.
(5) 12 U.S.C. 1782(d)(2)(B). Tier 2 CMP for non- $36,809.
inadvertent failure
to submit certified
statement or
submission of false
or misleading
statement.
(6) 12 U.S.C. 1782(d)(2)(C). Tier 3 CMP for $1,840,491 or 1
failure to submit a percent of the
certified statement total assets of the
or the submission credit union,
of a false or whichever is less.
misleading
statement done
knowingly or with
reckless disregard.
(7) 12 U.S.C. 1785(a)(3).... Non-compliance with $125.
insurance logo
requirements.
(8) 12 U.S.C. 1785(e)(3).... Non-compliance with $292.
NCUA security
requirements.
(9) 12 U.S.C. 1786(k)(2)(A). Tier 1 CMP for $10,067.
violations of law,
regulation, and
other orders or
agreements.
[[Page 2056]]
(10) 12 U.S.C. 1786(k)(2)(A) Tier 2 CMP for $50,334.
violations of law,
regulation, and
other orders or
agreements and for
recklessly engaging
in unsafe or
unsound practices
or breaches of
fiduciary duty.
(11) 12 U.S.C. 1786(k)(2)(A) Tier 3 CMP for $2,013,399.
knowingly
committing the
violations under
Tier 1 or 2
(natural person).
(12) 12 U.S.C. 1786(k)(2)(A) Tier 3 CMP for $2,013,399 or 1
knowingly percent of the
committing the total assets of the
violations under credit union,
Tier 1 or 2 whichever is less.
(insured credit
union).
(13) 12 U.S.C. Non-compliance with $331,174.
1786(w)(5)(ii). senior examiner
post-employment
restrictions.
(14) 15 U.S.C. 1639e(k)..... Non-compliance with First violation:
appraisal $11,563 Subsequent
independence violations:
requirements. $23,125.
(15) 42 U.S.C. 4012a(f)(5).. Non-compliance with $2,187.
flood insurance
requirements.
------------------------------------------------------------------------
(b) The adjusted amounts displayed in paragraph (a) of this section
apply to civil monetary penalties that are assessed after the date the
increase takes effect, including those whose associated violation or
violations pre-dated the increase and occurred after November 2, 2015.
[FR Doc. 2019-01123 Filed 2-5-19; 8:45 am]
BILLING CODE 7535-01-P
