Civil Penalty Inflation Adjustments, 2012-2014 [2020-00364]

Download as PDF 2012 Federal Register / Vol. 85, No. 9 / Tuesday, January 14, 2020 / Rules and Regulations U.S. code citation CMP description (5) 12 U.S.C. 1782(d)(2)(B) ............ 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 CMP for knowingly committing the violations under Tier 1 or 2 (insured credit union). (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) ............ (10) 12 U.S.C. 1786(k)(2)(A) .......... (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) .................. Non-compliance with senior examiner post-employment restrictions ... Non-compliance with appraisal independence requirements ................ (15) 42 U.S.C. 4012a(f)(5) .............. Non-compliance with 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 on or after November 2, 2015. [FR Doc. 2020–00309 Filed 1–13–20; 8:45 am] BILLING CODE 7535–01–P BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1083 Civil Penalty Inflation Adjustments Bureau of Consumer Financial Protection. ACTION: Final rule. AGENCY: The Bureau of Consumer Financial Protection (Bureau) is adjusting for inflation the maximum amount of each civil penalty within the Bureau’s jurisdiction. These adjustments are required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act). The inflation adjustments mandated by the Inflation Adjustment Act serve to maintain the deterrent effect of civil penalties and to promote compliance with the law. DATES: This final rule is effective January 15, 2020. FOR FURTHER INFORMATION CONTACT: Rachel Ross, Attorney-Advisor; Kristen Phinnessee, Senior Counsel, Office of Regulations, at (202) 435–7700. If you SUMMARY: lotter on DSKBCFDHB2PROD with RULES New maximum amount VerDate Sep<11>2014 16:28 Jan 13, 2020 Jkt 250001 require this document in an alternative electronic format, please contact CFPB_ Accessibility@cfpb.gov. SUPPLEMENTARY INFORMATION: I. Background The Federal Civil Penalties Inflation Adjustment Act of 1990,1 as amended by the Debt Collection Improvement Act of 1996 2 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act),3 directs Federal agencies to adjust for inflation the civil penalty amounts within their jurisdiction not later than July 1, 2016, and then not later than January 15 every year thereafter.4 Each agency was required to make the 2016 one-time catch-up adjustments through an interim final rule published in the Federal Register. On June 14, 2016, the Bureau published its interim final rule (IFR) to make the initial catch-up adjustments to civil penalties within the Bureau’s jurisdiction.5 The June 2016 IFR created a new part 1083 and in § 1083.1 established the inflationadjusted maximum amounts for each civil penalty within the Bureau’s 1 Public Law 101–410, 104 Stat. 890. Law 104–134, section 31001(s)(1), 110 Stat. 1321, 1321–373. 3 Public Law 114–74, section 701, 129 Stat. 584, 599. 4 Section 1301(a) of the Federal Reports Elimination Act of 1998, Public Law 105–362, 112 Stat. 3293, also amended the Inflation Adjustment Act by striking section 6, which contained annual reporting requirements, and redesignating section 7 as section 6, but did not alter the civil penalty adjustment requirements; 28 U.S.C. 2461 note. 5 81 FR 38569 (June 14, 2016). Although the Bureau was not obligated to solicit comments for the interim final rule, the Bureau invited public comment and received none. 2 Public PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 $37,458. $1,872,957 or 1 percent of the total assets of the credit union, whichever is less. $127. $297. $10,245. $51,222. $2,048,915. $2,048,915 or 1 percent of the total assets of the credit union, whichever is less. $337,016. First violation: $11,767. Subsequent violations: $23,533. $2,226. jurisdiction.6 The Bureau finalized the IFR on January 31, 2019.7 The Inflation Adjustment Act also requires subsequent adjustments to be made annually, not later than January 15, and notwithstanding section 553 of the Administrative Procedure Act (APA).8 The Bureau annually adjusted its civil penalty amounts, as required by the Act, through rules issued in January 2017, January 2018, and January 2019.9 Specifically, the Act directs Federal agencies to adjust annually each civil penalty provided by law within the jurisdiction of the agency by the ‘‘costof-living adjustment.’’ 10 The ‘‘cost-ofliving adjustment’’ is defined as the percentage (if any) by which the Consumer Price Index for all-urban consumers (CPI–U) for the month of October preceding the date of the adjustment, exceeds the CPI–U for October of the prior year.11 The Director of the Office of Management and Budget (OMB) is required to issue guidance (OMB Guidance) every year by 6 See 12 CFR 1083.1. FR 517 (Jan. 31, 2019). 8 Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. As discussed in guidance issued by the Director of the Office of Management and Budget (OMB), the APA generally requires notice, an opportunity for comment, and a delay in effective date for certain rulemakings, but the Inflation Adjustment Act provides that these procedures are not required for agencies to issue regulations implementing the annual adjustment. See Memorandum to the Exec. Dep’ts & Agencies from Russell T. Vought, Acting Director, Office of Mgmt. & Budget at 4 (Dec. 16, 2019), available at https://www.whitehouse.gov/wp-content/uploads/ 2019/12/M-20-05.pdf. 9 82 FR 3601 (Jan. 12, 2017); 83 FR 1525 (Jan. 12, 2018); 84 FR 517 (Jan. 31, 2019). 10 Inflation Adjustment Act sections 4 and 5, codified at 28 U.S.C. 2461 note. 11 Inflation Adjustment Act sections 3 and 5, codified at 28 U.S.C. 2461 note. 7 84 E:\FR\FM\14JAR1.SGM 14JAR1 Federal Register / Vol. 85, No. 9 / Tuesday, January 14, 2020 / Rules and Regulations December 15 to agencies on implementing the annual civil penalty inflation adjustments. Pursuant to the Inflation Adjustment Act and OMB Guidance, agencies must apply the multiplier reflecting the ‘‘cost-of-living adjustment’’ to the current penalty amount and then round that amount to the nearest dollar to determine the annual adjustments.12 The adjustments II. Adjustment Pursuant to the Inflation Adjustment Act and OMB Guidance, the Bureau multiplied each of its civil penalty amounts by the ‘‘cost-of-living adjustment’’ multiplier and rounded to the nearest dollar.15 The new penalty amounts that apply to civil penalties assessed after January 15, 2020, are as follows: Penalty amounts established under 2019 final rule OMB ‘‘cost-ofliving adjustment’’ multiplier Law Penalty description Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(A) Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(B) Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(C) Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2). Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2). Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1). Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1). Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(2)(A). SAFE Act, 12 U.S.C. 5113(d)(2) ............................................. Truth in Lending Act, 15 U.S.C. 1639e(k)(1) .......................... Truth in Lending Act, 15 U.S.C. 1639e(k)(2) .......................... Tier 1 penalty ......................... Tier 2 penalty ......................... Tier 3 penalty ......................... Per violation ........................... $5,781 28,906 1,156,242 2,014 1.01764 1.01764 1.01764 1.01764 $5,883 29,416 1,176,638 2,050 Annual cap ............................. 2,013,399 1.01764 2,048,915 Per failure .............................. 94 1.01764 96 Annual cap ............................. 189,427 1.01764 192,768 190 1.01764 193 29,192 11,563 23,125 1.01764 1.01764 1.01764 29,707 11,767 23,533 Per failure, where intentional Per violation ........................... First violation .......................... Subsequent violations ............ New penalty amount Under the Administrative Procedure Act, notice and opportunity for public comment are not required if the Bureau finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest.16 The adjustments to the civil penalty amounts are technical and nondiscretionary, and they merely apply the statutory method for adjusting civil penalty amounts. These adjustments are required by the Inflation Adjustment Act. Moreover, the Inflation Adjustment Act directs agencies to adjust civil penalties annually notwithstanding section 553 of the APA,17 and OMB Guidance reaffirms that agencies need not complete a notice-and-comment process before making the annual adjustments for inflation.18 For these reasons, the Bureau has determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. The amendments therefore are adopted in final form. Section 553(d) of the APA generally requires publication of a final rule not less than 30 days before its effective date, except (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) as otherwise provided by the agency for good cause found and published with the rule.19 At minimum, the Bureau believes the annual adjustments to the civil penalty amounts in § 1083.1(a) fall under the third exception to section 553(d). The Bureau finds that there is good cause to make the amendments effective on January 15, 2020. The amendments to § 1083.1(a) in this final rule are technical and nondiscretionary, and they merely apply the statutory method for adjusting civil penalty amounts and follow the statutory directive to make annual adjustments each year. Moreover, the Inflation Adjustment Act directs agencies to adjust the civil penalties annually notwithstanding section 553 of the APA,20 and OMB Guidance reaffirms that agencies need not provide a delay in effective date for the annual adjustments for inflation.21 12 Inflation Adjustment Act section 5, codified at 28 U.S.C. 2461 note; see also Memorandum to the Exec. Dep’ts & Agencies from Russell T. Vought, Acting Director, Office of Mgmt. & Budget (Dec. 16, 2019), available at https://www.whitehouse.gov/wpcontent/uploads/2019/12/M-20-05.pdf. 13 See Inflation Adjustment Act section 2, codified at 28 U.S.C. 2461 note. 14 Memorandum to the Exec. Dep’ts & Agencies from Russell T. Vought, Acting Director, Office of Mgmt. & Budget (Dec. 16, 2019), available at https:// www.whitehouse.gov/wp-content/uploads/2019/12/ M-20-05.pdf. 15 Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. 16 5 U.S.C. 553(b)(B). 17 Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. 18 Memorandum to the Exec. Dep’ts & Agencies from Russell T. Vought, Acting Director, Office of Mgmt. & Budget (Dec. 16, 2019), available at https:// www.whitehouse.gov/wp-content/uploads/2019/12/ M-20-05.pdf. 19 5 U.S.C. 553(d). 20 Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. 21 Memorandum to the Exec. Dep’ts & Agencies from Russell T. Vought, Acting Director, Office of Mgmt. & Budget (Dec. 16, 2019), available at https:// www.whitehouse.gov/wp-content/uploads/2019/12/ M-20-05.pdf. 22 5 U.S.C. 603(a), 604(a). III. Procedural Requirements A. Administrative Procedure Act lotter on DSKBCFDHB2PROD with RULES are designed to keep pace with inflation so that civil penalties retain their deterrent effect and promote compliance with the law.13 For the 2020 annual adjustment, the multiplier reflecting the ‘‘cost-of-living adjustment’’ is 1.01764.14 2013 VerDate Sep<11>2014 16:28 Jan 13, 2020 Jkt 250001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 B. Regulatory Flexibility Act Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis.22 C. Paperwork Reduction Act The Bureau has determined that this final rule does not impose any new or revise any existing recordkeeping, reporting, or disclosure requirements on covered entities or members of the public that would be collections of information requiring approval by the E:\FR\FM\14JAR1.SGM 14JAR1 2014 Federal Register / Vol. 85, No. 9 / Tuesday, January 14, 2020 / Rules and Regulations Office of Management and Budget under the Paperwork Reduction Act.23 D. Congressional Review Act Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Bureau will submit a report containing this rule and other required information to the United States Senate, the United States House of Representatives, and the Comptroller General of the United States prior to the rule taking effect. The Office of Information and Regulatory Affairs (OIRA) has designated this rule as not a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). List of Subjects in 12 CFR Part 1083 Administrative practice and procedure, Consumer protection, Penalties. Authority and Issuance For the reasons set forth in the preamble, the Bureau amends 12 CFR part 1083 as set forth below: PART 1083—CIVIL PENALTY ADJUSTMENTS 1. The authority citation for part 1083 continues to read as follows: ■ Authority: 12 U.S.C. 2609(d); 12 U.S.C. 5113(d)(2); 12 U.S.C. 5565(c); 15 U.S.C. 1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461 note. Law 12 12 12 15 15 12 12 12 12 15 15 U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. 5565(c)(2)(A) ........................................................... 5565(c)(2)(B) ........................................................... 5565(c)(2)(C) .......................................................... 1717a(a)(2) ............................................................. 1717a(a)(2) ............................................................. 2609(d)(1) ............................................................... 2609(d)(1) ............................................................... 2609(d)(2)(A) .......................................................... 5113(d)(2) ............................................................... 1639e(k)(1) ............................................................. 1639e(k)(2) ............................................................. Dated: January 8, 2020. Thomas Pahl, Policy Associate Director, Bureau of Consumer Financial Protection. BILLING CODE 4810–AM–P FEDERAL TRADE COMMISSION 16 CFR Part 1 Adjustments to Civil Penalty Amounts Federal Trade Commission. Final rule. AGENCY: The Federal Trade Commission (‘‘FTC’’ or ‘‘Commission’’) is implementing adjustments to the civil penalty amounts within its jurisdiction to account for inflation, as required by law. DATES: Effective January 14, 2020. lotter on DSKBCFDHB2PROD with RULES SUMMARY: 23 44 U.S.C. 3501–3521. Law 114–74, sec. 701, 129 Stat. 599 (2015). The Act amends the Federal Civil Penalties 1 Public 16:28 Jan 13, 2020 (a) The maximum amount of each civil penalty within the jurisdiction of the Consumer Financial Protection Bureau to impose is adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (28 U.S.C. 2461 note), as follows: Adjusted maximum civil penalty amount Jkt 250001 Tier 1 penalty .......................................................................... Tier 2 penalty .......................................................................... Tier 3 penalty .......................................................................... Per violation ............................................................................. Annual cap .............................................................................. Per failure ................................................................................ Annual cap .............................................................................. Per failure, where intentional .................................................. Per violation ............................................................................. First violation ........................................................................... Subsequent violations ............................................................. $5,883 29,416 1,176,638 2,050 2,048,915 96 192,768 193 29,707 11,767 23,533 The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 1 directs agencies to adjust the civil penalty maximums under their jurisdiction for inflation every January. Accordingly, the Commission issues annual adjustments to the maximum civil penalty amounts under its jurisdiction.2 Commission Rule § 1.98 sets forth the applicable civil penalty amounts for violations of certain laws enforced by the Commission.3 As directed by the FCPIAA, the Commission is issuing adjustments to increase these maximum civil penalty amounts to address inflation since its prior 2019 adjustment. The following adjusted amounts will take effect on January 14, 2020: • Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1) (premerger filing notification violations under the HartScott-Rodino Improvements Act)— Increase from $42,530 to $43,280; • Section 11(l) of the Clayton Act, 15 U.S.C. 21(l) (violations of cease and desist orders issued under Clayton Act section 11(b))—Increase from $22,595 to $22,994; • Section 5(l) of the FTC Act, 15 U.S.C. 45(l) (unfair or deceptive acts or practices)—Increase from $42,530 to $43,280; • Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A) (unfair or deceptive acts or practices)—Increase from $42,530 to $43,280; • Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B) (unfair or deceptive acts or practices)—Increase from $42,530 to $43,280; • Section 10 of the FTC Act, 15 U.S.C. 50 (failure to file required reports)— Increase from $559 to $569; • Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C. 65 (failure by associations engaged solely in export Inflation Adjustment Act (‘‘FCPIAA’’), Public Law 101–410, 104 Stat. 890 (codified at 28 U.S.C. 2461 note). 2 81 FR 42476 (June 30, 2016); 82 FR 8135 (2017); 83 FR 2902 (2018); 84 FR 3980 (2019). 3 16 CFR 1.98. FOR FURTHER INFORMATION CONTACT: Kenny A. Wright, Attorney, Office of the General Counsel, FTC, 600 Pennsylvania Avenue NW, Washington, DC 20580, (202–326–2907), kwright@ ftc.gov. SUPPLEMENTARY INFORMATION: [FR Doc. 2020–00364 Filed 1–13–20; 8:45 am] VerDate Sep<11>2014 § 1083.1 Adjustment of civil penalty amounts. Penalty description (b) The adjustments in paragraph (a) of this section shall apply to civil penalties assessed after January 15, 2020, whose associated violations occurred on or after November 2, 2015. ACTION: 2. Section 1083.1 is revised to read as follows: ■ PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\14JAR1.SGM 14JAR1

Agencies

[Federal Register Volume 85, Number 9 (Tuesday, January 14, 2020)]
[Rules and Regulations]
[Pages 2012-2014]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00364]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1083


Civil Penalty Inflation Adjustments

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
adjusting for inflation the maximum amount of each civil penalty within 
the Bureau's jurisdiction. These adjustments are required by the 
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by 
the Debt Collection Improvement Act of 1996 and further amended by the 
Federal Civil Penalties Inflation Adjustment Act Improvements Act of 
2015 (Inflation Adjustment Act). The inflation adjustments mandated by 
the Inflation Adjustment Act serve to maintain the deterrent effect of 
civil penalties and to promote compliance with the law.

DATES: This final rule is effective January 15, 2020.

FOR FURTHER INFORMATION CONTACT: Rachel Ross, Attorney-Advisor; Kristen 
Phinnessee, Senior Counsel, Office of Regulations, at (202) 435-7700. 
If you require this document in an alternative electronic format, 
please contact [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The Federal Civil Penalties Inflation Adjustment Act of 1990,\1\ as 
amended by the Debt Collection Improvement Act of 1996 \2\ and further 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Inflation Adjustment Act),\3\ directs Federal 
agencies to adjust for inflation the civil penalty amounts within their 
jurisdiction not later than July 1, 2016, and then not later than 
January 15 every year thereafter.\4\ Each agency was required to make 
the 2016 one-time catch-up adjustments through an interim final rule 
published in the Federal Register. On June 14, 2016, the Bureau 
published its interim final rule (IFR) to make the initial catch-up 
adjustments to civil penalties within the Bureau's jurisdiction.\5\ The 
June 2016 IFR created a new part 1083 and in Sec.  1083.1 established 
the inflation-adjusted maximum amounts for each civil penalty within 
the Bureau's jurisdiction.\6\ The Bureau finalized the IFR on January 
31, 2019.\7\
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    \1\ Public Law 101-410, 104 Stat. 890.
    \2\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321, 
1321-373.
    \3\ Public Law 114-74, section 701, 129 Stat. 584, 599.
    \4\ Section 1301(a) of the Federal Reports Elimination Act of 
1998, Public Law 105-362, 112 Stat. 3293, also amended the Inflation 
Adjustment Act by striking section 6, which contained annual 
reporting requirements, and redesignating section 7 as section 6, 
but did not alter the civil penalty adjustment requirements; 28 
U.S.C. 2461 note.
    \5\ 81 FR 38569 (June 14, 2016). Although the Bureau was not 
obligated to solicit comments for the interim final rule, the Bureau 
invited public comment and received none.
    \6\ See 12 CFR 1083.1.
    \7\ 84 FR 517 (Jan. 31, 2019).
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    The Inflation Adjustment Act also requires subsequent adjustments 
to be made annually, not later than January 15, and notwithstanding 
section 553 of the Administrative Procedure Act (APA).\8\ The Bureau 
annually adjusted its civil penalty amounts, as required by the Act, 
through rules issued in January 2017, January 2018, and January 
2019.\9\
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    \8\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note. As discussed in guidance issued by the Director of the 
Office of Management and Budget (OMB), the APA generally requires 
notice, an opportunity for comment, and a delay in effective date 
for certain rulemakings, but the Inflation Adjustment Act provides 
that these procedures are not required for agencies to issue 
regulations implementing the annual adjustment. See Memorandum to 
the Exec. Dep'ts & Agencies from Russell T. Vought, Acting Director, 
Office of Mgmt. & Budget at 4 (Dec. 16, 2019), available at https://www.whitehouse.gov/wp-content/uploads/2019/12/M-20-05.pdf.
    \9\ 82 FR 3601 (Jan. 12, 2017); 83 FR 1525 (Jan. 12, 2018); 84 
FR 517 (Jan. 31, 2019).
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    Specifically, the Act directs Federal agencies to adjust annually 
each civil penalty provided by law within the jurisdiction of the 
agency by the ``cost-of-living adjustment.'' \10\ The ``cost-of-living 
adjustment'' is defined as the percentage (if any) by which the 
Consumer Price Index for all-urban consumers (CPI-U) for the month of 
October preceding the date of the adjustment, exceeds the CPI-U for 
October of the prior year.\11\ The Director of the Office of Management 
and Budget (OMB) is required to issue guidance (OMB Guidance) every 
year by

[[Page 2013]]

December 15 to agencies on implementing the annual civil penalty 
inflation adjustments. Pursuant to the Inflation Adjustment Act and OMB 
Guidance, agencies must apply the multiplier reflecting the ``cost-of-
living adjustment'' to the current penalty amount and then round that 
amount to the nearest dollar to determine the annual adjustments.\12\ 
The adjustments are designed to keep pace with inflation so that civil 
penalties retain their deterrent effect and promote compliance with the 
law.\13\
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    \10\ Inflation Adjustment Act sections 4 and 5, codified at 28 
U.S.C. 2461 note.
    \11\ Inflation Adjustment Act sections 3 and 5, codified at 28 
U.S.C. 2461 note.
    \12\ Inflation Adjustment Act section 5, codified at 28 U.S.C. 
2461 note; see also Memorandum to the Exec. Dep'ts & Agencies from 
Russell T. Vought, Acting Director, Office of Mgmt. & Budget (Dec. 
16, 2019), available at https://www.whitehouse.gov/wp-content/uploads/2019/12/M-20-05.pdf.
    \13\ See Inflation Adjustment Act section 2, codified at 28 
U.S.C. 2461 note.
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    For the 2020 annual adjustment, the multiplier reflecting the 
``cost-of-living adjustment'' is 1.01764.\14\
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    \14\ Memorandum to the Exec. Dep'ts & Agencies from Russell T. 
Vought, Acting Director, Office of Mgmt. & Budget (Dec. 16, 2019), 
available at https://www.whitehouse.gov/wp-content/uploads/2019/12/M-20-05.pdf.
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II. Adjustment

    Pursuant to the Inflation Adjustment Act and OMB Guidance, the 
Bureau multiplied each of its civil penalty amounts by the ``cost-of-
living adjustment'' multiplier and rounded to the nearest dollar.\15\ 
The new penalty amounts that apply to civil penalties assessed after 
January 15, 2020, are as follows:
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    \15\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note.

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                                                                      Penalty
                                                                      amounts     OMB ``cost-of-
                  Law                     Penalty  description      established       living        New penalty
                                                                    under 2019     adjustment''       amount
                                                                    final rule      multiplier
----------------------------------------------------------------------------------------------------------------
Consumer Financial Protection Act, 12   Tier 1 penalty..........          $5,781         1.01764          $5,883
 U.S.C. 5565(c)(2)(A).
Consumer Financial Protection Act, 12   Tier 2 penalty..........          28,906         1.01764          29,416
 U.S.C. 5565(c)(2)(B).
Consumer Financial Protection Act, 12   Tier 3 penalty..........       1,156,242         1.01764       1,176,638
 U.S.C. 5565(c)(2)(C).
Interstate Land Sales Full Disclosure   Per violation...........           2,014         1.01764           2,050
 Act, 15 U.S.C. 1717a(a)(2).
Interstate Land Sales Full Disclosure   Annual cap..............       2,013,399         1.01764       2,048,915
 Act, 15 U.S.C. 1717a(a)(2).
Real Estate Settlement Procedures Act,  Per failure.............              94         1.01764              96
 12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act,  Annual cap..............         189,427         1.01764         192,768
 12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act,  Per failure, where                   190         1.01764             193
 12 U.S.C. 2609(d)(2)(A).                intentional.
SAFE Act, 12 U.S.C. 5113(d)(2)........  Per violation...........          29,192         1.01764          29,707
Truth in Lending Act, 15 U.S.C.         First violation.........          11,563         1.01764          11,767
 1639e(k)(1).
Truth in Lending Act, 15 U.S.C.         Subsequent violations...          23,125         1.01764          23,533
 1639e(k)(2).
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III. Procedural Requirements

A. Administrative Procedure Act

    Under the Administrative Procedure Act, notice and opportunity for 
public comment are not required if the Bureau finds that notice and 
public comment are impracticable, unnecessary, or contrary to the 
public interest.\16\ The adjustments to the civil penalty amounts are 
technical and non-discretionary, and they merely apply the statutory 
method for adjusting civil penalty amounts. These adjustments are 
required by the Inflation Adjustment Act. Moreover, the Inflation 
Adjustment Act directs agencies to adjust civil penalties annually 
notwithstanding section 553 of the APA,\17\ and OMB Guidance reaffirms 
that agencies need not complete a notice-and-comment process before 
making the annual adjustments for inflation.\18\ For these reasons, the 
Bureau has determined that publishing a notice of proposed rulemaking 
and providing opportunity for public comment are unnecessary. The 
amendments therefore are adopted in final form.
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    \16\ 5 U.S.C. 553(b)(B).
    \17\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note.
    \18\ Memorandum to the Exec. Dep'ts & Agencies from Russell T. 
Vought, Acting Director, Office of Mgmt. & Budget (Dec. 16, 2019), 
available at https://www.whitehouse.gov/wp-content/uploads/2019/12/M-20-05.pdf.
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    Section 553(d) of the APA generally requires publication of a final 
rule not less than 30 days before its effective date, except (1) a 
substantive rule which grants or recognizes an exemption or relieves a 
restriction; (2) interpretive rules and statements of policy; or (3) as 
otherwise provided by the agency for good cause found and published 
with the rule.\19\ At minimum, the Bureau believes the annual 
adjustments to the civil penalty amounts in Sec.  1083.1(a) fall under 
the third exception to section 553(d). The Bureau finds that there is 
good cause to make the amendments effective on January 15, 2020. The 
amendments to Sec.  [thinsp]1083.1(a) in this final rule are technical 
and non-discretionary, and they merely apply the statutory method for 
adjusting civil penalty amounts and follow the statutory directive to 
make annual adjustments each year. Moreover, the Inflation Adjustment 
Act directs agencies to adjust the civil penalties annually 
notwithstanding section 553 of the APA,\20\ and OMB Guidance reaffirms 
that agencies need not provide a delay in effective date for the annual 
adjustments for inflation.\21\
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    \19\ 5 U.S.C. 553(d).
    \20\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note.
    \21\ [thinsp]Memorandum to the Exec. Dep'ts & Agencies from 
Russell T. Vought, Acting Director, Office of Mgmt. & Budget (Dec. 
16, 2019), available at https://www.whitehouse.gov/wp-content/uploads/2019/12/M-20-05.pdf.
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B. Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required, the 
Regulatory Flexibility Act does not require an initial or final 
regulatory flexibility analysis.\22\
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    \22\ 5 U.S.C. 603(a), 604(a).
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C. Paperwork Reduction Act

    The Bureau has determined that this final rule does not impose any 
new or revise any existing recordkeeping, reporting, or disclosure 
requirements on covered entities or members of the public that would be 
collections of information requiring approval by the

[[Page 2014]]

Office of Management and Budget under the Paperwork Reduction Act.\23\
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    \23\ 44 U.S.C. 3501-3521.
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D. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Bureau will submit a report containing this rule and other required 
information to the United States Senate, the United States House of 
Representatives, and the Comptroller General of the United States prior 
to the rule taking effect. The Office of Information and Regulatory 
Affairs (OIRA) has designated this rule as not a ``major rule'' as 
defined by 5 U.S.C. 804(2).

List of Subjects in 12 CFR Part 1083

    Administrative practice and procedure, Consumer protection, 
Penalties.

Authority and Issuance

    For the reasons set forth in the preamble, the Bureau amends 12 CFR 
part 1083 as set forth below:

PART 1083--CIVIL PENALTY ADJUSTMENTS

0
1. The authority citation for part 1083 continues to read as follows:

    Authority: 12 U.S.C. 2609(d); 12 U.S.C. 5113(d)(2); 12 U.S.C. 
5565(c); 15 U.S.C. 1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461 
note.


0
2. Section 1083.1 is revised to read as follows:


Sec.  1083.1  Adjustment of civil penalty amounts.

    (a) The maximum amount of each civil penalty within the 
jurisdiction of the Consumer Financial Protection Bureau to impose is 
adjusted in accordance with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended by the Debt Collection Improvement 
Act of 1996 and further amended by the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (28 U.S.C. 2461 
note), as follows:

------------------------------------------------------------------------
                                                       Adjusted  maximum
              Law                Penalty description     civil penalty
                                                             amount
------------------------------------------------------------------------
12 U.S.C. 5565(c)(2)(A).......  Tier 1 penalty.......             $5,883
12 U.S.C. 5565(c)(2)(B).......  Tier 2 penalty.......             29,416
12 U.S.C. 5565(c)(2)(C).......  Tier 3 penalty.......          1,176,638
15 U.S.C. 1717a(a)(2).........  Per violation........              2,050
15 U.S.C. 1717a(a)(2).........  Annual cap...........          2,048,915
12 U.S.C. 2609(d)(1)..........  Per failure..........                 96
12 U.S.C. 2609(d)(1)..........  Annual cap...........            192,768
12 U.S.C. 2609(d)(2)(A).......  Per failure, where                   193
                                 intentional.
12 U.S.C. 5113(d)(2)..........  Per violation........             29,707
15 U.S.C. 1639e(k)(1).........  First violation......             11,767
15 U.S.C. 1639e(k)(2).........  Subsequent violations             23,533
------------------------------------------------------------------------

    (b) The adjustments in paragraph (a) of this section shall apply to 
civil penalties assessed after January 15, 2020, whose associated 
violations occurred on or after November 2, 2015.

    Dated: January 8, 2020.
Thomas Pahl,
Policy Associate Director, Bureau of Consumer Financial Protection.
[FR Doc. 2020-00364 Filed 1-13-20; 8:45 am]
 BILLING CODE 4810-AM-P