81 FR 38569 - Civil Penalty Inflation Adjustments
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 81, Issue 114 (June 14, 2016)
Federal Register Volume 81, Issue 114 (June 14, 2016)
| Page Range | 38569-38572 | |
| FR Document | 2016-14031 |
[Federal Register Volume 81, Number 114 (Tuesday, June 14, 2016)] [Rules and Regulations] [Pages 38569-38572] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14031] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. ======================================================================== Federal Register / Vol. 81, No. 114 / Tuesday, June 14, 2016 / Rules and Regulations [[Page 38569]] BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1083 [Docket No.: CFPB-2016-0028] RIN 3170-AA62 Civil Penalty Inflation Adjustments AGENCY: Bureau of Consumer Financial Protection. ACTION: Interim final rule with request for public comment. ----------------------------------------------------------------------- SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is publishing for public comment an interim final rule to adjust the civil monetary penalties within the Bureau's jurisdiction for inflation, as required by the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act or the Act), 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 (2015 Act). DATES: This rule is effective on July 14, 2016. Comments must be received on or before July 14, 2016. ADDRESSES: You may submit comments, identified by Docket No. CFPB-2016- 0028 or RIN 3170-AA62, by any of the following methods:Email: FederalRegisterComments @cfpb.gov. Include Docket No. CFPB-2016-0028 or RIN 3170-AA62 in the subject line of the email. Electronic: http://www.regulations.gov. Follow the instructions for submitting comments. Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552. Hand Delivery/Courier: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1275 First Street NE., Washington, DC 20002. Instructions: All submissions should include the agency name and docket number or Regulatory Information Number (RIN) for this rulemaking. Because paper mail in the Washington, DC area and at the Bureau is subject to delay, commenters are encouraged to submit comments electronically. In general, all comments received will be posted without change to http://www.regulations.gov. In addition, comments will be available for public inspection and copying at 1275 First Street NE., Washington, DC 20002, on official business days between the hours of 10 a.m. and 5 p.m. eastern time. You can make an appointment to inspect the documents by telephoning (202) 435-7275. All comments, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Sensitive personal information, such as account numbers or Social Security numbers, should not be included. Comments generally will not be edited to remove any identifying or contact information. FOR FURTHER INFORMATION CONTACT: Kristin Bateman, Counsel, Legal Division, Consumer Financial Protection Bureau, at (202) 435-7700. SUPPLEMENTARY INFORMATION: I. Background The Inflation Adjustment Act, as amended by the 2015 Act, requires Federal agencies to adjust the civil penalty amounts within their jurisdiction for inflation by July 1, 2016, and then by January 15 every year thereafter.\1\ Agencies must make the initial 2016 adjustments through an interim final rulemaking published in the Federal Register.\2\ Under the amended Act, any increase in a civil penalty made under the Act will apply to penalties assessed after the increase takes effect, including penalties whose associated violation predated the increase.\3\ The inflation adjustments mandated by the Act serve to maintain the deterrent effect of civil penalties and to promote compliance with the law. --------------------------------------------------------------------------- \1\ See 28 U.S.C. 2461 note. \2\ The statute also provides that, for the initial 2016 adjustment, an agency may adjust a civil penalty by less than the otherwise required amount if (1) it determines, after publishing a notice of proposed rulemaking and providing an opportunity for comment, that increasing the civil penalty by the otherwise required amount would have a negative economic impact or that the social costs of increasing the civil penalty by the otherwise required amount outweigh the benefits, and (2) the Director of the Office of Management and Budget concurs with that determination. Inflation Adjustment Act section 4(c), codified at 28 U.S.C. 2461 note. The Bureau has chosen not to make use of this exception. \3\ Inflation Adjustment Act section 6, codified at 28 U.S.C. 2461 note. --------------------------------------------------------------------------- II. Method of Calculation The Inflation Adjustment Act prescribes a specific method for calculating the inflation adjustments.\4\ As amended by the 2015 Act, the Act provides that the maximum (and minimum, if applicable) amounts for each civil penalty must be increased by the ``cost-of-living adjustment,'' a term that the Act defines. For purposes of the initial adjustments that agencies must make by July 1, 2016, the ``cost-of- living adjustment'' is defined as the percentage increase in the Consumer Price Index between (1) October of the calendar year during which the civil penalty amount was established or adjusted under a provision of law other than the Inflation Adjustment Act and (2) October 2015. The Consumer Price Index to be used for purposes of this calculation is the Consumer Price Index for all urban consumers (CPI-U) published by the Department of Labor.\5\ The Office of Management and Budget (OMB) has published guidance for implementing this requirement.\6\ OMB's guidance memorandum provides multipliers that agencies should use to adjust penalty amounts based on the year the penalty was established or last adjusted under authority other than the Inflation Adjustment Act. --------------------------------------------------------------------------- \4\ Inflation Adjustment Act section 5, codified at 28 U.S.C. 2461 note. \5\ U.S. Dep't of Labor, Bureau of Labor Statistics, CPI Tables, http://www.bls.gov/cpi/#tables. \6\ Memorandum from Shaun Donovan, Director, Office of Management and Budget, to the Heads of Executive Departments and Agencies (Feb. 24, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf. --------------------------------------------------------------------------- To determine the new penalty amount, the agency must apply the multiplier reflecting the ``cost-of-living adjustment'' \7\ to the penalty amount as it was most recently established or adjusted under a provision of law other [[Page 38570]] than the Inflation Adjustment Act. The agency must then round that amount to the nearest dollar.\8\ The increase made by this initial adjustment may not exceed 150 percent of the penalty amount in effect on the date the 2015 Act was enacted, November 2, 2015. --------------------------------------------------------------------------- \7\ The multipliers reflecting the ``cost-of-living adjustment'' that OMB provides are rounded to five decimal places. The Bureau has used the OMB multipliers in calculating its civil penalty adjustments. \8\ In rounding to the nearest dollar, the Bureau has rounded down where the digit immediately following the decimal point is less than 5 and has rounded up where the digit immediately following the decimal point is 5 or greater. --------------------------------------------------------------------------- III. Description of the Interim Final Rule This interim final rule establishes the inflation-adjusted maximum amounts for each civil penalty within the Bureau's jurisdiction. The following table lists the civil penalties within the Bureau's jurisdiction and summarizes the relevant information needed to calculate the inflation adjustments pursuant to the statutory method. ---------------------------------------------------------------------------------------------------------------- Penalty amount Year penalty as established established or or last adjusted last adjusted Penalty amount under a under a in effect on Law Penalty description provision other provision other November 2, than the than the 2015 inflation inflation adjustment act adjustment act ---------------------------------------------------------------------------------------------------------------- Consumer Financial Protection Act, Tier 1 penalty....... $5,000 \9\2010 \10\$5,000 12 U.S.C. 5565(c)(2)(A). Consumer Financial Protection Act, Tier 2 penalty....... 25,000 \11\2010 \12\25,000 12 U.S.C. 5565(c)(2)(B). Consumer Financial Protection Act, Tier 3 penalty....... 1,000,000 \13\2010 \14\1,000,000 12 U.S.C. 5565(c)(2)(C). Interstate Land Sales Full Per violation........ 1,000 \15\1989 \16\1,000 Disclosure Act, 15 U.S.C. 1717a(a)(2). Interstate Land Sales Full Annual cap........... 1,000,000 \17\1989 \18\1,000,000 Disclosure Act, 15 U.S.C. 1717a(a)(2). Real Estate Settlement Procedures Per failure.......... 50 \19\1990 \20\50 Act, 12 U.S.C. 2609(d)(1). Real Estate Settlement Procedures Annual cap........... 100,000 \21\1990 \22\100,000 Act, 12 U.S.C. 2609(d)(1). Real Estate Settlement Procedures Per failure, where 100 \23\1990 \24\100 Act, 12 U.S.C. 2609(d)(2)(A). intentional. SAFE Act, 12 U.S.C. 5113(d)(2)..... Per violation........ 25,000 \25\2008 \26\25,000 Truth in Lending Act, 15 U.S.C. First violation...... 10,000 \27\2010 \28\10,000 1639e(k)(1). Truth in Lending Act, 15 U.S.C. Subsequent violations 20,000 \29\2010 \30\20,000 1639e(k)(2). ---------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------- \9\ Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, section 1055(c)(2)(A), 124 Stat. 1376, 2030 (2010). \10\ 12 U.S.C. 5565(c)(2)(A) (2015). \11\ Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, section 1055(c)(2)(B), 124 Stat. 1376, 2030 (2010). \12\ 12 U.S.C. 5565(c)(2)(B) (2015). \13\ Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, section 1055(c)(2)(C), 124 Stat. 1376, 2030 (2010). \14\ 12 U.S.C. 5565(c)(2)(C) (2015). \15\ Department of Housing and Urban Development Reform Act, Public Law 101-235, section 111, 103 Stat. 1987, 2014 (1989). \16\ 15 U.S.C. 1717a(a)(2) (2015). \17\ Department of Housing and Urban Development Reform Act, Public Law 101-235, section 111, 103 Stat. 1987, 2014 (1989). \18\ 15 U.S.C. 1717a(a)(2) (2015). \19\ Cranston-Gonzalez National Affordable Housing Act, Public Law 101-625, section 942(a)(2), 104 Stat. 4079, 4412 (1990). \20\ 12 U.S.C. 2609(d)(1) (2015). \21\ Cranston-Gonzalez National Affordable Housing Act, Public Law 101-625, section 942(a)(2), 104 Stat. 4079, 4412 (1990). \22\ 12 U.S.C. 2609(d)(1) (2015). \23\ Cranston-Gonzalez National Affordable Housing Act, Public Law 101-625, section 942(a)(2), 104 Stat. 4079, 4412 (1990). \24\ 12 U.S.C. 2609(d)(2)(A) (2015). \25\ Housing and Economic Recovery Act of 2008, Public Law 110- 289, section 1514(d)(2), 122 Stat. 2654, 2823 (2008). \26\ 12 U.S.C. 5113(d)(2) (2015). \27\ Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, section 1472(a), 124 Stat. 1376, 2189 (2010). \28\ 15 U.S.C. 1639e(k)(1) (2015). \29\ Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, section 1472(a), 124 Stat. 1376, 2190 (2010). \30\ 15 U.S.C. 1639e(k)(2) (2015). --------------------------------------------------------------------------- The Bureau followed the procedure outlined above in part II to calculate the adjusted civil penalty amounts. In accordance with the statutory requirements and OMB guidance, the Bureau multiplied each penalty amount as established or last adjusted under a provision other than the Inflation Adjustment Act by the OMB multiplier corresponding to the appropriate year, and then rounded that amount to the nearest dollar, to calculate the new, inflation-adjusted civil penalty amount. The Bureau then confirmed that the amount by which each civil penalty increased did not exceed 150 percent of the corresponding civil penalty level in effect on November 2, 2015. None of the increases exceeded this 150-percent threshold. The following chart summarizes the results of these calculations: -------------------------------------------------------------------------------------------------------------------------------------------------------- Penalty amount Year penalty as established established or or last adjusted last adjusted OMB ``cost-of- under a under a living New penalty Law Penalty description provision other provision other adjustment'' amount than the than the multiplier inflation inflation adjustment act adjustment act -------------------------------------------------------------------------------------------------------------------------------------------------------- Consumer Financial Protection Act, 12 U.S.C. Tier 1 penalty.................. $5,000 2010 1.08745 $5,437 5565(c)(2)(A). Consumer Financial Protection Act, 12 U.S.C. Tier 2 penalty.................. 25,000 2010 1.08745 27,186 5565(c)(2)(B). [[Page 38571]] Consumer Financial Protection Act, 12 U.S.C. Tier 3 penalty.................. 1,000,000 2010 1.08745 1,087,450 5565(c)(2)(C). Interstate Land Sales Full Disclosure Act, 15 Per violation................... 1,000 1989 1.89361 1,894 U.S.C. 1717a(a)(2). Interstate Land Sales Full Disclosure Act, 15 Annual cap...................... 1,000,000 1989 1.89361 1,893,610 U.S.C. 1717a(a)(2). Real Estate Settlement Procedures Act, 12 Per failure..................... 50 1990 1.78156 89 U.S.C. 2609(d)(1). Real Estate Settlement Procedures Act, 12 Annual cap...................... 100,000 1990 1.78156 178,156 U.S.C. 2609(d)(1). Real Estate Settlement Procedures Act, 12 Per failure, where intentional.. 100 1990 1.78156 178 U.S.C. 2609(d)(2)(A). SAFE Act, 12 U.S.C. 5113(d)(2)................ Per violation................... 25,000 2008 1.09819 27,455 Truth in Lending Act, 15 U.S.C. 1639e(k)(1)... First violation................. 10,000 2010 1.08745 10,875 Truth in Lending Act, 15 U.S.C. 1639e(k)(2)... Subsequent violations........... 20,000 2010 1.08745 21,749 -------------------------------------------------------------------------------------------------------------------------------------------------------- This rule codifies these civil penalty amounts by adding new part 1083 to title 12 of the CFR and new Sec. 1083.1 therein. IV. Legal Authority and Effective Date The Bureau issues this rule under the Federal Civil Penalties Inflation Adjustment Act of 1990,\31\ as amended by the Debt Collection Improvement Act of 1996,\32\ and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,\33\ which requires the Bureau to adjust the civil penalties within its jurisdiction for inflation according to a statutorily prescribed formula. --------------------------------------------------------------------------- \31\ Public Law 101-410, 104 Stat. 890 (1990). \32\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321, 1321-373 (1996). \33\ Public Law 114-74, section 701, 129 Stat. 584, 599 (2015). --------------------------------------------------------------------------- The Administrative Procedure Act (APA) generally requires an agency to publish a rule at least 30 days before its effective date.\34\ This rule satisfies that requirement. --------------------------------------------------------------------------- \34\ See 5 U.S.C. 553(d). --------------------------------------------------------------------------- V. Request for Comment Although notice and comment rulemaking procedures are not required, the Bureau invites comments on this notice. Commenters are specifically encouraged to identify any technical issues raised by the rule. VI. Regulatory Requirements Notice and Comment Under the APA, notice and opportunity for public comment are not required if the Bureau finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest.\35\ This interim final rule adjusts the civil penalty amounts within the Bureau's jurisdiction for inflation, as 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. The amendments in this interim final rule are technical, and they merely apply the statutory method for adjusting civil penalty amounts. For these reasons, the Bureau has determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. Moreover, the statute expressly requires the Bureau to make these initial adjustments through an interim final rulemaking to be published by July 1, 2016,\36\ and OMB's guidance confirms that agencies need not complete a notice-and-comment process before promulgating the rule.\37\ Therefore, the amendments are adopted in final form. --------------------------------------------------------------------------- \35\ 5 U.S.C. 553(b)(B). \36\ Inflation Adjustment Act, section 4(b)(1)(A), codified at 28 U.S.C. 2461 note. \37\ Memorandum from Shaun Donovan, Director, Office of Management and Budget, to the Heads of Executive Departments and Agencies 3 (Feb. 24, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf. --------------------------------------------------------------------------- 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.\38\ --------------------------------------------------------------------------- \38\ 5 U.S.C. 603(a), 604(a). --------------------------------------------------------------------------- Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995,\39\ the Bureau reviewed this interim final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the interim final rule. --------------------------------------------------------------------------- \39\ 44 U.S.C. 3506; 5 CFR 1320. --------------------------------------------------------------------------- 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 adds part 1083 to chapter X in title 12 of the Code of Federal Regulations to read as set forth below: PART 1083--CIVIL PENALTY ADJUSTMENTS Sec. 1083.1 Adjustments of civil penalty amounts. Authority: 12 U.S.C. 2609(d); 12 U.S.C. 5113(d)(2); 12 U.S.C. 5565(c); 15 U.S.C. 1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461 note. Sec. 1083.1 Adjustments of civil penalty amounts. (a) The maximum amount of each civil penalty within the jurisdiction of the Consumer Financial Protection Bureau to impose is adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal [[Page 38572]] Civil Penalties Inflation Adjustment Act Improvements Act of 2015, (28 U.S.C. 2461 note) as follows: ------------------------------------------------------------------------ Adjusted maximum U.S. code citation Civil penalty civil penalty description amount ------------------------------------------------------------------------ 12 U.S.C. 5565(c)(2)(A)....... Tier 1 penalty....... $5,437 12 U.S.C. 5565(c)(2)(B)....... Tier 2 penalty....... 27,186 12 U.S.C. 5565(c)(2)(C)....... Tier 3 penalty....... 1,087,450 15 U.S.C. 1717a(a)(2)......... Per violation........ 1,894 15 U.S.C. 1717a(a)(2)......... Annual cap........... 1,893,610 12 U.S.C. 2609(d)(1).......... Per failure.......... 89 12 U.S.C. 2609(d)(1).......... Annual cap........... 178,156 12 U.S.C. 2609(d)(2)(A)....... Per failure, where 178 intentional. 12 U.S.C. 5113(d)(2).......... Per violation........ 27,455 15 U.S.C. 1639e(k)(1)......... First violation...... 10,875 15 U.S.C. 1639e(k)(2)......... Subsequent violations 21,749 ------------------------------------------------------------------------ (b) The adjustments in paragraph (a) of this section shall apply to civil penalties assessed after July 14, 2016, regardless of when the violation for which the penalty is assessed occurred. Dated: June 7, 2016. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2016-14031 Filed 6-13-16; 8:45 am] BILLING CODE 4810-AM-P
![38569
Rules and Regulations Federal Register
Vol. 81, No. 114
Tuesday, June 14, 2016
This section of the FEDERAL REGISTER Protection Bureau, 1275 First Street NE., penalty made under the Act will apply
contains regulatory documents having general Washington, DC 20002. to penalties assessed after the increase
applicability and legal effect, most of which Instructions: All submissions should takes effect, including penalties whose
are keyed to and codified in the Code of include the agency name and docket associated violation predated the
Federal Regulations, which is published under number or Regulatory Information increase.3 The inflation adjustments
50 titles pursuant to 44 U.S.C. 1510.
Number (RIN) for this rulemaking. mandated by the Act serve to maintain
The Code of Federal Regulations is sold by Because paper mail in the Washington, the deterrent effect of civil penalties and
the Superintendent of Documents. Prices of DC area and at the Bureau is subject to to promote compliance with the law.
new books are listed in the first FEDERAL delay, commenters are encouraged to
II. Method of Calculation
REGISTER issue of each week. submit comments electronically. In
general, all comments received will be The Inflation Adjustment Act
posted without change to http:// prescribes a specific method for
BUREAU OF CONSUMER FINANCIAL www.regulations.gov. In addition, calculating the inflation adjustments.4
PROTECTION comments will be available for public As amended by the 2015 Act, the Act
inspection and copying at 1275 First provides that the maximum (and
12 CFR Part 1083 Street NE., Washington, DC 20002, on minimum, if applicable) amounts for
official business days between the hours each civil penalty must be increased by
[Docket No.: CFPB–2016–0028] the ‘‘cost-of-living adjustment,’’ a term
of 10 a.m. and 5 p.m. eastern time. You
can make an appointment to inspect the that the Act defines. For purposes of the
RIN 3170–AA62
documents by telephoning (202) 435– initial adjustments that agencies must
Civil Penalty Inflation Adjustments 7275. make by July 1, 2016, the ‘‘cost-of-living
All comments, including attachments adjustment’’ is defined as the percentage
AGENCY: Bureau of Consumer Financial and other supporting materials, will increase in the Consumer Price Index
Protection. become part of the public record and between (1) October of the calendar year
ACTION: Interim final rule with request subject to public disclosure. Sensitive during which the civil penalty amount
for public comment. personal information, such as account was established or adjusted under a
numbers or Social Security numbers, provision of law other than the Inflation
SUMMARY: The Bureau of Consumer should not be included. Comments Adjustment Act and (2) October 2015.
Financial Protection (Bureau) is generally will not be edited to remove The Consumer Price Index to be used
publishing for public comment an any identifying or contact information. for purposes of this calculation is the
interim final rule to adjust the civil FOR FURTHER INFORMATION CONTACT: Consumer Price Index for all urban
monetary penalties within the Bureau’s Kristin Bateman, Counsel, Legal consumers (CPI–U) published by the
jurisdiction for inflation, as required by Division, Consumer Financial Department of Labor.5 The Office of
the Federal Civil Penalties Inflation Protection Bureau, at (202) 435–7700. Management and Budget (OMB) has
Adjustment Act of 1990 (the Inflation published guidance for implementing
SUPPLEMENTARY INFORMATION:
Adjustment Act or the Act), as amended this requirement.6 OMB’s guidance
by the Debt Collection Improvement Act I. Background memorandum provides multipliers that
of 1996 and further amended by the The Inflation Adjustment Act, as agencies should use to adjust penalty
Federal Civil Penalties Inflation amended by the 2015 Act, requires amounts based on the year the penalty
Adjustment Act Improvements Act of Federal agencies to adjust the civil was established or last adjusted under
2015 (2015 Act). penalty amounts within their authority other than the Inflation
DATES: This rule is effective on July 14, jurisdiction for inflation by July 1, 2016, Adjustment Act.
2016. Comments must be received on or and then by January 15 every year To determine the new penalty
before July 14, 2016. thereafter.1 Agencies must make the amount, the agency must apply the
ADDRESSES: You may submit comments, initial 2016 adjustments through an multiplier reflecting the ‘‘cost-of-living
identified by Docket No. CFPB–2016– interim final rulemaking published in adjustment’’ 7 to the penalty amount as
0028 or RIN 3170–AA62, by any of the the Federal Register.2 Under the it was most recently established or
following methods: amended Act, any increase in a civil adjusted under a provision of law other
• Email: FederalRegisterComments 3 Inflation Adjustment Act section 6, codified at
@cfpb.gov. Include Docket No. CFPB– 1 See 28 U.S.C. 2461 note.
28 U.S.C. 2461 note.
2 The statute also provides that, for the initial
2016–0028 or RIN 3170–AA62 in the 4 Inflation Adjustment Act section 5, codified at
2016 adjustment, an agency may adjust a civil
subject line of the email. penalty by less than the otherwise required amount 28 U.S.C. 2461 note.
• Electronic: http:// if (1) it determines, after publishing a notice of
5 U.S. Dep’t of Labor, Bureau of Labor Statistics,
www.regulations.gov. Follow the proposed rulemaking and providing an opportunity CPI Tables, http://www.bls.gov/cpi/#tables.
6 Memorandum from Shaun Donovan, Director,
instructions for submitting comments. for comment, that increasing the civil penalty by
Office of Management and Budget, to the Heads of
sradovich on DSK3TPTVN1PROD with RULES
the otherwise required amount would have a
• Mail: Monica Jackson, Office of the negative economic impact or that the social costs Executive Departments and Agencies (Feb. 24,
Executive Secretary, Consumer of increasing the civil penalty by the otherwise 2016), https://www.whitehouse.gov/sites/default/
Financial Protection Bureau, 1700 G required amount outweigh the benefits, and (2) the files/omb/memoranda/2016/m-16-06.pdf.
Street NW., Washington, DC 20552. Director of the Office of Management and Budget 7 The multipliers reflecting the ‘‘cost-of-living
concurs with that determination. Inflation adjustment’’ that OMB provides are rounded to five
• Hand Delivery/Courier: Monica Adjustment Act section 4(c), codified at 28 U.S.C. decimal places. The Bureau has used the OMB
Jackson, Office of the Executive 2461 note. The Bureau has chosen not to make use multipliers in calculating its civil penalty
Secretary, Consumer Financial of this exception. adjustments.
VerDate Sep<11>2014 16:33 Jun 13, 2016 Jkt 238001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\14JNR1.SGM 14JNR1](https://thefederalregister.org/doc/81_FR_38683/page/1.svg)
![38572 Federal Register / Vol. 81, No. 114 / Tuesday, June 14, 2016 / Rules and Regulations
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, (28 U.S.C.
2461 note) as follows:
Adjusted
U.S. code citation Civil penalty description maximum civil
penalty amount
12 U.S.C. 5565(c)(2)(A) ........................................................... Tier 1 penalty .......................................................................... $5,437
12 U.S.C. 5565(c)(2)(B) ........................................................... Tier 2 penalty .......................................................................... 27,186
12 U.S.C. 5565(c)(2)(C) .......................................................... Tier 3 penalty .......................................................................... 1,087,450
15 U.S.C. 1717a(a)(2) ............................................................. Per violation ............................................................................. 1,894
15 U.S.C. 1717a(a)(2) ............................................................. Annual cap .............................................................................. 1,893,610
12 U.S.C. 2609(d)(1) ............................................................... Per failure ................................................................................ 89
12 U.S.C. 2609(d)(1) ............................................................... Annual cap .............................................................................. 178,156
12 U.S.C. 2609(d)(2)(A) .......................................................... Per failure, where intentional .................................................. 178
12 U.S.C. 5113(d)(2) ............................................................... Per violation ............................................................................. 27,455
15 U.S.C. 1639e(k)(1) ............................................................. First violation ........................................................................... 10,875
15 U.S.C. 1639e(k)(2) ............................................................. Subsequent violations ............................................................. 21,749
(b) The adjustments in paragraph (a) identify the specific POC model in an Background
of this section shall apply to civil FAA regulation. This final rule replaces
penalties assessed after July 14, 2016, the current process and allows On May 24, 2016, the FAA published
regardless of when the violation for passengers to use a POC on board an a final rule entitled, ‘‘Acceptance
which the penalty is assessed occurred. aircraft if the POC satisfies certain Criteria for Portable Oxygen
acceptance criteria and bears a label Concentrators Used On Board Aircraft’’
Dated: June 7, 2016. (81 FR 33098).
Richard Cordray,
indicating conformance with the
acceptance criteria. The labeling This final rule affects the use of POCs
Director, Bureau of Consumer Financial
requirement only affects POCs intended on board aircraft in operations
Protection.
for use on board aircraft that were not conducted under title 14 of the Code of
[FR Doc. 2016–14031 Filed 6–13–16; 8:45 am]
previously approved for use on aircraft Federal Regulations (14 CFR) parts 121,
BILLING CODE 4810–AM–P
by the FAA. Additionally, this 125, and 135, by replacing the existing
rulemaking will eliminate redundant FAA case-by-case approval process for
operational requirements and each make and model of POC in Special
DEPARTMENT OF TRANSPORTATION paperwork requirements related to the Federal Aviation Regulation (SFAR) No.
physician’s statement. As a result, this 106, with FAA acceptance criteria.
Federal Aviation Administration Under SFAR No. 106, each time the
rulemaking will reduce burdens for POC
manufacturers, passengers who use FAA approves a specific model of POC
14 CFR Parts 1, 11, 121, 125, and 135 for use on board aircraft, the agency
POCs while traveling, and affected
aircraft operators. This final rule also updates the list of approved POCs in the
Office of the Secretary SFAR.
makes conforming amendments to the
Department of Transportation’s This final rule removes SFAR No. 106
14 CFR Part 382
(Department or DOT) rule implementing and replaces it with POC acceptance
[Docket No.: FAA–2014–0554; Amdt. Nos. the Air Carrier Access Act (ACAA) to criteria and specific labeling
1–69; 11–60; 121–374, 125–65, 135–133] require carriers to accept all POC requirements to identify POCs that
RIN 2120–AK32 models that meet FAA acceptance conform to the acceptance criteria. POCs
criteria as detailed in this rule. that conform to the final rule acceptance
Acceptance Criteria for Portable DATES: This correction will become criteria will be allowed on board aircraft
Oxygen Concentrators Used On Board effective on June 23, 2016. without additional FAA review and
Aircraft; Correction FOR FURTHER INFORMATION CONTACT: For rulemaking.
AGENCY: Federal Aviation technical questions concerning this As with existing requirements for
Administration (FAA) and the Office of action, contact DK Deaderick, 121 Air FAA approval of POCs that may be used
the Secretary (OST), Department of Carrier Operations Branch, Air on aircraft, the final rule acceptance
Transportation (DOT). Transportation Division, Flight criteria and labeling requirement only
Standards Service, Federal Aviation apply to POCs intended for use on board
ACTION: Final rule; correction.
Administration, AFS–220, 800 aircraft. Table 1 provides a comparison
SUMMARY: This final rule replaces the Independence Avenue SW., of the final rule acceptance criteria and
existing process by which the Federal Washington, DC 20591; telephone (202) labeling requirement with related SFAR
Aviation Administration (Agency or 267–7480; email dk.deaderick@faa.gov. No. 106.
FAA) approves portable oxygen For questions regarding the However, the final rule was published
concentrators (POC) for use on board Department’s disability regulation (14 with an incorrect amendment number,
aircraft in air carrier operations, CFR part 382), contact Clereece Kroha, ‘‘11–59,’’ which is the same amendment
sradovich on DSK3TPTVN1PROD with RULES
commercial operations, and certain Senior Attorney, Office of Aviation number as the rule entitled
other operations using large aircraft. The Enforcement and Proceedings, ‘‘Administrative Practices and
FAA currently assesses each POC make Department of Transportation, 1200 Procedures, Reporting and
and model on a case-by-case basis and New Jersey Avenue SE., Washington, Recordkeeping Requirements ’’ (81 FR
if the FAA determines that a particular DC 20590; telephone (202) 366–9041; 13969), published on March 16, 2016.
POC is safe for use on board an aircraft, email clereece.kroha@dot.gov. The correct amendment number for this
the FAA conducts rulemaking to SUPPLEMENTARY INFORMATION: rule should be ‘‘11–60.’’
VerDate Sep<11>2014 16:33 Jun 13, 2016 Jkt 238001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\14JNR1.SGM 14JNR1](https://thefederalregister.org/doc/81_FR_38683/page/4.svg)
Document Created: 2016-06-14 02:58:53
Document Modified: 2016-06-14 02:58:53
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Interim final rule with request for public comment. | |
| Dates | This rule is effective on July 14, 2016. Comments must be received on or before July 14, 2016. | |
| Contact | Kristin Bateman, Counsel, Legal Division, Consumer Financial Protection Bureau, at (202) 435-7700. | |
| FR Citation | 81 FR 38569 | |
| RIN Number | 3170-AA62 | |
| CFR Associated | Administrative Practice and Procedure; Consumer Protection and Penalties |
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