81_FR_47145 81 FR 47006 - Rules of Practice for Hearings

81 FR 47006 - Rules of Practice for Hearings

FEDERAL RESERVE SYSTEM

Federal Register Volume 81, Issue 139 (July 20, 2016)

Page Range47006-47009
FR Document2016-16969

The Board of Governors of the Federal Reserve System (the ``Board'') is issuing an interim final rule amending its rules of practice and procedure to adjust the amount of each civil monetary penalty (``CMP'') provided by law within its jurisdiction to account for inflation as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

Federal Register, Volume 81 Issue 139 (Wednesday, July 20, 2016)
[Federal Register Volume 81, Number 139 (Wednesday, July 20, 2016)]
[Rules and Regulations]
[Pages 47006-47009]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16969]


=======================================================================
-----------------------------------------------------------------------

FEDERAL RESERVE SYSTEM

12 CFR Part 263

[Docket No. R-1543]
RIN 7100 AE-55


Rules of Practice for Hearings

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Interim final rule.

-----------------------------------------------------------------------

SUMMARY: The Board of Governors of the Federal Reserve System (the 
``Board'') is issuing an interim final rule amending its rules of 
practice and procedure to adjust the amount of each civil monetary 
penalty (``CMP'') provided by law within its jurisdiction to account 
for inflation as required by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015.

DATES: This interim final rule is effective on August 1, 2016. Comments 
on the interim final rule must be received on or before August 30, 
2016.

ADDRESSES: When submitting comments, please consider submitting your 
comments by email or fax because paper mail in the Washington, DC area 
and at the Board may be subject to delay. You may submit comments, 
identified by Docket No. R-1543 and RIN 7100 AE 55, by any of the 
following methods:
     Agency Web site: www.federalreserve.gov. Follow the 
instructions for submitting comments at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments.
     Email: regs.comments@federalreserve.gov. Include the 
docket number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Address to Robert deV. Frierson, Secretary, Board of 
Governors of the Federal Reserve System, 20th Street and Constitution 
Avenue NW., Washington, DC 20551.
    All public comments will be made available on the Board's Web site 
at

[[Page 47007]]

www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, 
unless modified for technical reasons. Accordingly, comments will not 
be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room 
3515, 1801 K Street NW. (between 18th and 19th Streets), Washington, DC 
20551) between 9:00 a.m. and 5:00 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: Katherine H. Wheatley, Associate 
General Counsel (202/452-3779), or Mehrnoush Bigloo, Senior Attorney 
(202/475-6361), Legal Division, Board of Governors of the Federal 
Reserve System, 20th Street and Constitution Ave. NW., Washington, DC 
20551. For users of Telecommunication Device for the Deaf (TDD) only, 
contact 202/263-4869.

SUPPLEMENTARY INFORMATION:

Federal Civil Penalties Inflation Adjustment Act

    The Federal Civil Penalties Inflation Adjustment Act of 1990, 28 
U.S.C. 2461 note (``FCPIA Act''), requires Federal agencies to adjust, 
by regulation, the CMPs within their jurisdiction to account for 
inflation. The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (the ``2015 Act'' or the ``Act'') \1\ amended 
the FCPIA to require the adjustment to be made annually rather than 
every four years, and to direct federal agencies to make the ``catch-
up'' adjustment--the first inflation adjustment after the date of 
enactment of the 2015 Act--through an interim final rulemaking, to take 
effect no later than August 1, 2016.\2\ The Board is issuing this 
interim final rule to set the new civil monetary penalty levels 
pursuant to the required catch-up adjustment. The Board will apply 
these adjusted maximum penalty levels to any penalties assessed on or 
after August 1, 2016. Penalties assessed prior to August 1, 2016, will 
be subject to the amounts set in the Board's last adjustment pursuant 
to the FCPIA.\3\
---------------------------------------------------------------------------

    \1\ Pub. L. 114-74, 129 Stat. 599 (2015) (codified at 28 U.S.C. 
2461 note).
    \2\ 28 U.S.C. 2461 note, section 4(b)(1).
    \3\ 77 FR 68,680 (Nov. 16, 2012).
---------------------------------------------------------------------------

    Under the 2015 Act, the initial catch-up adjustment is the 
percentage for each civil monetary penalty by which the Consumer Price 
Index for the month of October 2015 exceeds the Consumer Price Index 
for the month of October of the calendar year during which the amount 
of the penalty was established or adjusted other than pursuant to the 
FCPIA. On February 24, 2016, as directed by the 2015 Act, the Office of 
Management and Budget (OMB) issued guidance to agencies on implementing 
the required catch-up adjustment which included the relevant inflation 
multipliers per calendar year.\4\ Using OMB's multipliers, the Board 
calculated the adjusted penalties for its civil monetary penalties, 
rounding the penalties to the nearest dollar. Under the 2015 Act, the 
amount of any increase may not exceed 150 percent of the amount of the 
penalty on the date of the enactment of the 2015 Act, which is November 
2, 2015.\5\ Accordingly, in a few cases where the calculated penalties 
exceeded the statutory maximum, the Board adjusted the respective 
penalty amount to 250 percent of the prior penalty. The Board also 
determined that none of the increases resulting from application of the 
2015 Act's formula would have a negative economic impact and that any 
social costs of increasing those penalty limits would not outweigh the 
benefits of the increase. For this reason, the Board did not seek an 
exception from the application of the formula as permitted by section 
4(c) of the 2015 Act.
---------------------------------------------------------------------------

    \4\ OMB Memorandum M-16-06, Implementation of the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (Feb. 
24, 2016).
    \5\ 28 U.S.C. 2461 note, section 4(b)(2)(C).
---------------------------------------------------------------------------

Administrative Procedure Act

    Pursuant to the Administrative Procedure Act (the ``APA''), notice 
of proposed rulemaking and opportunity for public comment are not 
required prior to the issuance of a final rule if an agency, for good 
cause, finds that ``notice and public procedure thereon are 
impracticable, unnecessary, or contrary to the public interest.'' \6\ 
As discussed above, the Board calculated the initial catch-up 
adjustment strictly in accordance with the requirements of the 2015 Act 
and OMB's implementing guidance. Moreover, the 2015 Act expressly 
requires the Board to publish the new catch-up penalty levels through 
an interim final rule, meaning that the rule can become effective prior 
to the receipt of public comments.\7\ For these reasons, the Board 
finds good cause to determine that publishing a notice of proposed 
rulemaking and providing opportunity for public comment prior to 
adopting a final rule are unnecessary.\8\ Nevertheless, because the 
Board is required to publish the catch-up penalty levels through an 
interim final rulemaking, the Board is inviting comments on this 
interim final rule. In view of the fact that the Board has calculated 
the catch-up adjustments strictly in accordance with OMB's implementing 
guidance, the Board specifically encourages comments identifying any 
issues with the Board's calculations under that guidance. The Board 
also invites comments regarding its determination that the bases for an 
exception under section 4(c) of the 2015 Act were not met.
---------------------------------------------------------------------------

    \6\ 5 U.S.C. 553(b)(3)(B).
    \7\ 28 U.S.C. 2461 note, section 4(b)(1).
    \8\ 5 U.S.C. 553(b).
---------------------------------------------------------------------------

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 requires agencies' catch-up adjustments to be made through 
an interim final rule, 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 interim 
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 of Governors 
amends 12 CFR part 263 as follows:

PART 263--RULES OF PRACTICE FOR HEARINGS

0
1. The authority citation for part 263 is revised to read as follows:

    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. 2461 note; 31 U.S.C. 5321; and 42 U.S.C. 
4012a.


0
2. Section 263.65 is revised to read as follows:


Sec.  263.65  Civil monetary 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 monetary penalty provided by 
law

[[Page 47008]]

within the Board's jurisdiction. The authorizing statutes contain the 
complete provisions under which the Board may seek a civil monetary 
penalty. The adjusted civil monetary penalties apply only to penalties 
assessed on or after August 1, 2016.
    (b) Maximum civil monetary penalties. The maximum civil monetary 
penalties as set forth in the referenced statutory sections are set 
forth in the table in this paragraph (b).

------------------------------------------------------------------------
                                                          Adjusted civil
                         Statute                             monetary
                                                              penalty
------------------------------------------------------------------------
12 U.S.C. 324:
    Inadvertently late or misleading reports, inter alia          $3,787
    Other late or misleading reports, inter alia........          37,872
    Knowingly or reckless false or misleading reports,         1,893,610
     inter alia.........................................
12 U.S.C. 334...........................................             275
12 U.S.C. 374a..........................................             275
12 U.S.C. 504:
    First Tier..........................................           9,468
    Second Tier.........................................          47,340
    Third Tier..........................................       1,893,610
12 U.S.C. 505:
    First Tier..........................................           9,468
    Second Tier.........................................          47,340
    Third Tier..........................................       1,893,610
12 U.S.C. 1464(v)(4)....................................           3,787
12 U.S.C. 1464(v)(5)....................................          37,872
12 U.S.C. 1464(v)(6)....................................       1,893,610
12 U.S.C. 1467a(i)(2)...................................          47,340
12 U.S.C. 1467a(i)(3)...................................          47,340
12 U.S.C. 1467a(r):
    First Tier..........................................           3,787
    Second Tier.........................................          37,872
    Third Tier..........................................       1,893,610
12 U.S.C. 1817(j)(16):
    First Tier..........................................           9,468
    Second Tier.........................................          47,340
    Third Tier..........................................       1,893,610
12 U.S.C. 1818(i)(2):
    First Tier..........................................           9,468
    Second Tier.........................................          47,340
    Third Tier..........................................       1,893,610
12 U.S.C. 1820(k)(6)(A)(ii).............................         311,470
12 U.S.C. 1832(c).......................................           2,750
12 U.S.C. 1847(b).......................................          47,340
12 U.S.C. 1847(d):
    First Tier..........................................           3,787
    Second Tier.........................................          37,872
    Third Tier..........................................       1,893,610
12 U.S.C. 1884..........................................             275
12 U.S.C. 1972(2)(F):
    First Tier..........................................           9,468
    Second Tier.........................................          47,340
    Third Tier..........................................       1,893,610
12 U.S.C. 3909(d).......................................            2355
12 U.S.C. 3110(a).......................................          43,275
12 U.S.C. 3110(c):
    First Tier..........................................           3,462
    Second Tier.........................................          34,620
    Third Tier..........................................       1,730,990
15 U.S.C. 78u-2(b)(1):
    For a natural person................................           8,908
    For any other person................................          89,078
15 U.S.C. 78u-2(b)(2):
    For a natural person................................          89,078
    For any other person................................         445,390
15 U.S.C. 78u-2(b)(3):
    For a natural person................................         178,156
    For any other person................................         890,780
15 U.S.C. 1639e(k)(1)...................................          10,875
15 U.S.C. 1639e(k)(2)...................................          21,749
42 U.S.C. 4012a(f)(5)...................................            2056
------------------------------------------------------------------------



[[Page 47009]]

    By order of the Board of Governors of the Federal Reserve 
System, July 13, 2016.
Robert deV. Frierson,
Secretary of the Board.
    Billing Code: 6210-01-P
[FR Doc. 2016-16969 Filed 7-19-16; 8:45 am]
BILLING CODE 6210-01-P



                                             47006             Federal Register / Vol. 81, No. 139 / Wednesday, July 20, 2016 / Rules and Regulations

                                             § 2.327(d), to reflect advancements in                   VI. Congressional Review Act                          officer that will ensure a clear and
                                             technology and to bring its regulations                    This final rule is not a rule as defined            concise description of the corrections.
                                             in line with current agency practice.                    in the Congressional Review Act (5                      Dated at Rockville, Maryland, this 14th day
                                             The revision to § 2.327(d) removes                       U.S.C. 801–808).                                      of July, 2016.
                                             prescriptive requirements from the                                                                               For the Nuclear Regulatory Commission.
                                             regulation and allows presiding officers                 VII. Availability of Guidance
                                                                                                                                                            Cindy Bladey,
                                             flexibility in determining the method to                   The NRC will not be issuing guidance                Chief, Rules, Announcements, and Directives
                                             prepare corrected transcripts. This                      for this rulemaking because the revised               Branch. Office of Administration.
                                             change allows the presiding officer to                   rule applies to the NRC only and does                 [FR Doc. 2016–17072 Filed 7–19–16; 8:45 am]
                                             list transcript changes in a table                       not affect the rights and responsibilities
                                                                                                                                                            BILLING CODE 7590–01–P
                                             included in or appended to an order;                     of outside parties.
                                             issue a marked-up version of the
                                             transcript; issue a clean, revised version               List of Subjects in 10 CFR Part 2
                                             of the transcript; or select another                       Administrative practice and                         FEDERAL RESERVE SYSTEM
                                             method that ensures a clear and concise                  procedure, Antitrust, Byproduct
                                                                                                      material, Classified information,                     12 CFR Part 263
                                             description of transcript changes.
                                                                                                      Confidential business information,                    [Docket No. R–1543]
                                             II. Rulemaking Procedure                                 Freedom of information, Environmental                 RIN 7100 AE–55
                                                Under the Administrative Procedure                    protection, Hazardous waste, Nuclear
                                             Act (5 U.S.C. 553(b)(A)), notice and                     energy, Nuclear materials, Nuclear                    Rules of Practice for Hearings
                                             comment requirements do not apply ‘‘to                   power plants and reactors, Penalties,
                                             interpretive rules, general statements of                Reporting and recordkeeping                           AGENCY:  Board of Governors of the
                                             policy, or rules of agency organization,                 requirements, Sex discrimination,                     Federal Reserve System.
                                             procedure, or practice.’’ Because this                   Source material, Special nuclear                      ACTION: Interim final rule.
                                             revision affects the NRC’s rules of                      material, Waste treatment and disposal.
                                             agency procedure and practice, the                                                                             SUMMARY:    The Board of Governors of the
                                                                                                        For the reasons set out in the                      Federal Reserve System (the ‘‘Board’’) is
                                             notice and comment provisions of the                     preamble and under the authority of the
                                             Administrative Procedure Act do not                                                                            issuing an interim final rule amending
                                                                                                      Atomic Energy Act of 1954, as amended;                its rules of practice and procedure to
                                             apply. Moreover, the final rule does not                 the Energy Reorganization Act of 1974,
                                             change the substantive responsibilities                                                                        adjust the amount of each civil
                                                                                                      as amended; and 5 U.S.C. 552 and 553,                 monetary penalty (‘‘CMP’’) provided by
                                             of any person or entity regulated by the                 the NRC is adopting the following
                                             NRC.                                                                                                           law within its jurisdiction to account for
                                                                                                      amendments to 10 CFR part 2.                          inflation as required by the Federal Civil
                                                The amendments are effective upon
                                             publication in the Federal Register.                     PART 2—AGENCY RULES OF                                Penalties Inflation Adjustment Act
                                             Good cause exists under 5 U.S.C. 553(d)                  PRACTICE AND PROCEDURE                                Improvements Act of 2015.
                                             to dispense with the usual 30-day delay                                                                        DATES: This interim final rule is
                                             in the effective date of the final rule                  ■ 1. The authority citation for part 2                effective on August 1, 2016. Comments
                                             because the amendments are of a minor                    continues to read as follows:                         on the interim final rule must be
                                             and administrative nature dealing with                     Authority: Atomic Energy Act of 1954,               received on or before August 30, 2016.
                                             changes to certain sections that do not                  secs. 29, 53, 62, 63, 81, 102, 103, 104, 105,         ADDRESSES: When submitting
                                             require action by any person or entity                   161, 181, 182, 183, 184, 186, 189, 191, 234           comments, please consider submitting
                                             regulated by the NRC.                                    (42 U.S.C. 2039, 2073, 2092, 2093, 2111,              your comments by email or fax because
                                                                                                      2132, 2133, 2134, 2135, 2201, 2231, 2232,             paper mail in the Washington, DC area
                                             III. Plain Writing                                       2233, 2234, 2236, 2239, 2241, 2282); Energy
                                                                                                                                                            and at the Board may be subject to
                                                The Plain Writing Act of 2010 (Pub.                   Reorganization Act of 1974, secs. 201, 206
                                                                                                      (42 U.S.C. 5841, 5846); Nuclear Waste Policy          delay. You may submit comments,
                                             L. 111–274) requires Federal agencies to                 Act of 1982, secs. 114(f), 134, 135, 141 (42          identified by Docket No. R–1543 and
                                             write documents in a clear, concise, and                 U.S.C. 10134(f), 10154, 10155, 10161);                RIN 7100 AE 55, by any of the following
                                             well-organized manner. The NRC has                       Administrative Procedure Act (5 U.S.C. 552,           methods:
                                             written this document to be consistent                   553, 554, 557, 558); National Environmental              • Agency Web site:
                                             with the Plain Writing Act as well as the                Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C.        www.federalreserve.gov. Follow the
                                             Presidential Memorandum, ‘‘Plain                         3504 note. Section 2.205(j) also issued under         instructions for submitting comments at
                                             Language in Government Writing,’’                        Sec. 31001(s), Pub. L. 104–134, 110 Stat.             www.federalreserve.gov/generalinfo/
                                             published June 10, 1998 (63 FR 31883).                   1321–373 (28 U.S.C. 2461 note).
                                                                                                                                                            foia/ProposedRegs.cfm.
                                                                                                      ■ 2. In § 2.327, revise paragraph (d) to                 • Federal eRulemaking Portal:
                                             IV. National Environmental Policy Act                    read as follows:                                      www.regulations.gov. Follow the
                                                The NRC has determined that this                                                                            instructions for submitting comments.
                                             final rule is the type of action described               § 2.327   Official recording; transcript.                • Email: regs.comments@
                                             in 10 CFR 51.22(c)(1). Therefore, neither                *     *     *     *     *                             federalreserve.gov. Include the docket
                                             an environmental impact statement nor                      (d) Transcript corrections. Corrections             number in the subject line of the
                                             environmental assessment has been                        ordered or approved by the presiding                  message.
                                             prepared for this final rule.                            officer must be included in the record                   • Fax: (202) 452–3819 or (202) 452–
                                                                                                      through the issuance of an order by the               3102.
                                             V. Paperwork Reduction Act                               presiding officer or the Secretary, as                   • Mail: Address to Robert deV.
rmajette on DSK2TPTVN1PROD with RULES




                                                This final rule does not contain a                    appropriate under the regulations in this             Frierson, Secretary, Board of Governors
                                             collection of information as defined in                  part. The order shall reflect the                     of the Federal Reserve System, 20th
                                             the Paperwork Reduction Act of 1995                      corrections to the transcript through the             Street and Constitution Avenue NW.,
                                             (44 U.S.C. 3501 et seq.) and, therefore,                 use of a table, the issuance of a                     Washington, DC 20551.
                                             is not subject to the requirements of the                corrected or new transcript, or some                     All public comments will be made
                                             Paperwork Reduction Act of 1995.                         other method selected by the presiding                available on the Board’s Web site at


                                        VerDate Sep<11>2014   14:53 Jul 19, 2016   Jkt 238001   PO 00000   Frm 00006   Fmt 4700   Sfmt 4700   E:\FR\FM\20JYR1.SGM   20JYR1


                                                               Federal Register / Vol. 81, No. 139 / Wednesday, July 20, 2016 / Rules and Regulations                                            47007

                                             www.federalreserve.gov/generalinfo/                      Management and Budget (OMB) issued                    strictly in accordance with OMB’s
                                             foia/ProposedRegs.cfm as submitted,                      guidance to agencies on implementing                  implementing guidance, the Board
                                             unless modified for technical reasons.                   the required catch-up adjustment which                specifically encourages comments
                                             Accordingly, comments will not be                        included the relevant inflation                       identifying any issues with the Board’s
                                             edited to remove any identifying or                      multipliers per calendar year.4 Using                 calculations under that guidance. The
                                             contact information. Public comments                     OMB’s multipliers, the Board calculated               Board also invites comments regarding
                                             may also be viewed electronically or in                  the adjusted penalties for its civil                  its determination that the bases for an
                                             paper form in Room 3515, 1801 K Street                   monetary penalties, rounding the                      exception under section 4(c) of the 2015
                                             NW. (between 18th and 19th Streets),                     penalties to the nearest dollar. Under                Act were not met.
                                             Washington, DC 20551) between 9:00                       the 2015 Act, the amount of any
                                             a.m. and 5:00 p.m. on weekdays.                          increase may not exceed 150 percent of                Regulatory Flexibility Act
                                             FOR FURTHER INFORMATION CONTACT:                         the amount of the penalty on the date                    The Regulatory Flexibility Act, 5
                                             Katherine H. Wheatley, Associate                         of the enactment of the 2015 Act, which               U.S.C. 601 et seq., requires a regulatory
                                             General Counsel (202/452–3779), or                       is November 2, 2015.5 Accordingly, in a               flexibility analysis only for rules for
                                             Mehrnoush Bigloo, Senior Attorney                        few cases where the calculated penalties              which an agency is required to publish
                                             (202/475–6361), Legal Division, Board                    exceeded the statutory maximum, the                   a general notice of proposed
                                             of Governors of the Federal Reserve                      Board adjusted the respective penalty                 rulemaking. Because the 2015 Act
                                             System, 20th Street and Constitution                     amount to 250 percent of the prior                    requires agencies’ catch-up adjustments
                                             Ave. NW., Washington, DC 20551. For                      penalty. The Board also determined that               to be made through an interim final
                                             users of Telecommunication Device for                    none of the increases resulting from                  rule, the Board is not publishing a
                                             the Deaf (TDD) only, contact 202/263–                    application of the 2015 Act’s formula                 notice of proposed rulemaking.
                                             4869.                                                    would have a negative economic impact                 Therefore, the Regulatory Flexibility Act
                                             SUPPLEMENTARY INFORMATION:                               and that any social costs of increasing               does not apply.
                                                                                                      those penalty limits would not outweigh
                                             Federal Civil Penalties Inflation                                                                              Paperwork Reduction Act
                                                                                                      the benefits of the increase. For this
                                             Adjustment Act                                           reason, the Board did not seek an                        There is no collection of information
                                                The Federal Civil Penalties Inflation                 exception from the application of the                 required by this interim final rule that
                                             Adjustment Act of 1990, 28 U.S.C. 2461                   formula as permitted by section 4(c) of               would be subject to the Paperwork
                                             note (‘‘FCPIA Act’’), requires Federal                   the 2015 Act.                                         Reduction Act of 1995, 44 U.S.C. 3501
                                             agencies to adjust, by regulation, the                                                                         et seq.
                                                                                                      Administrative Procedure Act
                                             CMPs within their jurisdiction to                                                                              List of Subjects in 12 CFR Part 263
                                             account for inflation. The Federal Civil                    Pursuant to the Administrative
                                             Penalties Inflation Adjustment Act                       Procedure Act (the ‘‘APA’’), notice of                  Administrative practice and
                                             Improvements Act of 2015 (the ‘‘2015                     proposed rulemaking and opportunity                   procedure, Claims, Crime, Equal access
                                             Act’’ or the ‘‘Act’’) 1 amended the FCPIA                for public comment are not required                   to justice, Lawyers, Penalties.
                                             to require the adjustment to be made                     prior to the issuance of a final rule if an           Authority and Issuance
                                             annually rather than every four years,                   agency, for good cause, finds that
                                                                                                      ‘‘notice and public procedure thereon                   For the reasons set forth in the
                                             and to direct federal agencies to make
                                                                                                      are impracticable, unnecessary, or                    preamble, the Board of Governors
                                             the ‘‘catch-up’’ adjustment—the first
                                                                                                      contrary to the public interest.’’ 6 As               amends 12 CFR part 263 as follows:
                                             inflation adjustment after the date of
                                             enactment of the 2015 Act—through an                     discussed above, the Board calculated
                                                                                                      the initial catch-up adjustment strictly              PART 263—RULES OF PRACTICE FOR
                                             interim final rulemaking, to take effect                                                                       HEARINGS
                                             no later than August 1, 2016.2 The                       in accordance with the requirements of
                                             Board is issuing this interim final rule                 the 2015 Act and OMB’s implementing                   ■  1. The authority citation for part 263
                                             to set the new civil monetary penalty                    guidance. Moreover, the 2015 Act                      is revised to read as follows:
                                             levels pursuant to the required catch-up                 expressly requires the Board to publish
                                                                                                      the new catch-up penalty levels through                 Authority: 5 U.S.C. 504, 554–557; 12
                                             adjustment. The Board will apply these                                                                         U.S.C. 248, 324, 334, 347a, 504, 505, 1464,
                                             adjusted maximum penalty levels to any                   an interim final rule, meaning that the
                                                                                                                                                            1467, 1467a, 1817(j), 1818, 1820(k), 1829,
                                             penalties assessed on or after August 1,                 rule can become effective prior to the                1831o, 1831p–1, 1832(c), 1847(b), 1847(d),
                                             2016. Penalties assessed prior to August                 receipt of public comments.7 For these                1884, 1972(2)(F), 3105, 3108, 3110, 3349,
                                             1, 2016, will be subject to the amounts                  reasons, the Board finds good cause to                3907, 3909(d), 4717; 15 U.S.C. 21, 78l(i),
                                             set in the Board’s last adjustment                       determine that publishing a notice of                 78o–4, 78o–5, 78u–2; 1639e(k); 28 U.S.C.
                                             pursuant to the FCPIA.3                                  proposed rulemaking and providing                     2461 note; 31 U.S.C. 5321; and 42 U.S.C.
                                                Under the 2015 Act, the initial catch-                opportunity for public comment prior to               4012a.
                                             up adjustment is the percentage for each                 adopting a final rule are unnecessary.8               ■ 2. Section 263.65 is revised to read as
                                             civil monetary penalty by which the                      Nevertheless, because the Board is                    follows:
                                             Consumer Price Index for the month of                    required to publish the catch-up penalty
                                             October 2015 exceeds the Consumer                        levels through an interim final                       § 263.65 Civil monetary penalty inflation
                                                                                                      rulemaking, the Board is inviting                     adjustments.
                                             Price Index for the month of October of
                                             the calendar year during which the                       comments on this interim final rule. In                 (a) Inflation adjustments. In
                                             amount of the penalty was established                    view of the fact that the Board has                   accordance with the Federal Civil
                                             or adjusted other than pursuant to the                   calculated the catch-up adjustments                   Penalties Inflation Adjustment Act
                                                                                                                                                            Improvements Act of 2015, which
rmajette on DSK2TPTVN1PROD with RULES




                                             FCPIA. On February 24, 2016, as
                                             directed by the 2015 Act, the Office of
                                                                                                        4 OMB Memorandum M–16–06, Implementation
                                                                                                                                                            further amended the Federal Civil
                                                                                                      of the Federal Civil Penalties Inflation Adjustment   Penalties Inflation Adjustment Act of
                                                                                                      Act Improvements Act of 2015 (Feb. 24, 2016).
                                               1 Pub. L. 114–74, 129 Stat. 599 (2015) (codified at      5 28 U.S.C. 2461 note, section 4(b)(2)(C).          1990, the Board has set forth in
                                             28 U.S.C. 2461 note).                                      6 5 U.S.C. 553(b)(3)(B).                            paragraph (b) of this section the
                                               2 28 U.S.C. 2461 note, section 4(b)(1).                  7 28 U.S.C. 2461 note, section 4(b)(1).             adjusted maximum amounts for each
                                               3 77 FR 68,680 (Nov. 16, 2012).                          8 5 U.S.C. 553(b).                                  civil monetary penalty provided by law


                                        VerDate Sep<11>2014   14:53 Jul 19, 2016   Jkt 238001   PO 00000   Frm 00007   Fmt 4700   Sfmt 4700   E:\FR\FM\20JYR1.SGM   20JYR1


                                             47008                    Federal Register / Vol. 81, No. 139 / Wednesday, July 20, 2016 / Rules and Regulations

                                             within the Board’s jurisdiction. The                                        penalties apply only to penalties                                           statutory sections are set forth in the
                                             authorizing statutes contain the                                            assessed on or after August 1, 2016.                                        table in this paragraph (b).
                                             complete provisions under which the                                           (b) Maximum civil monetary
                                             Board may seek a civil monetary                                             penalties. The maximum civil monetary
                                             penalty. The adjusted civil monetary                                        penalties as set forth in the referenced

                                                                                                                                                                                                                                                      Adjusted civil
                                                                                                                                          Statute                                                                                                      monetary
                                                                                                                                                                                                                                                        penalty

                                             12 U.S.C. 324:
                                                 Inadvertently late or misleading reports, inter alia .......................................................................................................................                                $3,787
                                                 Other late or misleading reports, inter alia ...................................................................................................................................                            37,872
                                                 Knowingly or reckless false or misleading reports, inter alia .......................................................................................................                                    1,893,610
                                             12 U.S.C. 334 ......................................................................................................................................................................................               275
                                             12 U.S.C. 374a ....................................................................................................................................................................................                275
                                             12 U.S.C. 504:
                                                 First Tier .......................................................................................................................................................................................           9,468
                                                 Second Tier ..................................................................................................................................................................................              47,340
                                                 Third Tier ......................................................................................................................................................................................        1,893,610
                                             12 U.S.C. 505:
                                                 First Tier .......................................................................................................................................................................................           9,468
                                                 Second Tier ..................................................................................................................................................................................              47,340
                                                 Third Tier ......................................................................................................................................................................................        1,893,610
                                             12 U.S.C. 1464(v)(4) ...........................................................................................................................................................................                 3,787
                                             12 U.S.C. 1464(v)(5) ...........................................................................................................................................................................                37,872
                                             12 U.S.C. 1464(v)(6) ...........................................................................................................................................................................             1,893,610
                                             12 U.S.C. 1467a(i)(2) ..........................................................................................................................................................................                47,340
                                             12 U.S.C. 1467a(i)(3) ..........................................................................................................................................................................                47,340
                                             12 U.S.C. 1467a(r):
                                                 First Tier .......................................................................................................................................................................................           3,787
                                                 Second Tier ..................................................................................................................................................................................              37,872
                                                 Third Tier ......................................................................................................................................................................................        1,893,610
                                             12 U.S.C. 1817(j)(16):
                                                 First Tier .......................................................................................................................................................................................           9,468
                                                 Second Tier ..................................................................................................................................................................................              47,340
                                                 Third Tier ......................................................................................................................................................................................        1,893,610
                                             12 U.S.C. 1818(i)(2):
                                                 First Tier .......................................................................................................................................................................................           9,468
                                                 Second Tier ..................................................................................................................................................................................              47,340
                                                 Third Tier ......................................................................................................................................................................................        1,893,610
                                             12 U.S.C. 1820(k)(6)(A)(ii) ...................................................................................................................................................................                311,470
                                             12 U.S.C. 1832(c) ................................................................................................................................................................................               2,750
                                             12 U.S.C. 1847(b) ................................................................................................................................................................................              47,340
                                             12 U.S.C. 1847(d):
                                                 First Tier .......................................................................................................................................................................................           3,787
                                                 Second Tier ..................................................................................................................................................................................              37,872
                                                 Third Tier ......................................................................................................................................................................................        1,893,610
                                             12 U.S.C. 1884 ....................................................................................................................................................................................                275
                                             12 U.S.C. 1972(2)(F):
                                                 First Tier .......................................................................................................................................................................................           9,468
                                                 Second Tier ..................................................................................................................................................................................              47,340
                                                 Third Tier ......................................................................................................................................................................................        1,893,610
                                             12 U.S.C. 3909(d) ................................................................................................................................................................................               2355
                                             12 U.S.C. 3110(a) ................................................................................................................................................................................              43,275
                                             12 U.S.C. 3110(c):
                                                 First Tier .......................................................................................................................................................................................           3,462
                                                 Second Tier ..................................................................................................................................................................................              34,620
                                                 Third Tier ......................................................................................................................................................................................        1,730,990
                                             15 U.S.C. 78u–2(b)(1):
                                                 For a natural person .....................................................................................................................................................................                   8,908
                                                 For any other person ....................................................................................................................................................................                   89,078
                                             15 U.S.C. 78u–2(b)(2):
                                                 For a natural person .....................................................................................................................................................................                  89,078
                                                 For any other person ....................................................................................................................................................................                  445,390
                                             15 U.S.C. 78u–2(b)(3):
                                                 For a natural person .....................................................................................................................................................................                 178,156
                                                 For any other person ....................................................................................................................................................................                  890,780
rmajette on DSK2TPTVN1PROD with RULES




                                             15 U.S.C. 1639e(k)(1) .........................................................................................................................................................................                 10,875
                                             15 U.S.C. 1639e(k)(2) .........................................................................................................................................................................                 21,749
                                             42 U.S.C. 4012a(f)(5) ..........................................................................................................................................................................                  2056




                                        VerDate Sep<11>2014         14:53 Jul 19, 2016        Jkt 238001       PO 00000        Frm 00008       Fmt 4700       Sfmt 4700       E:\FR\FM\20JYR1.SGM              20JYR1


                                                               Federal Register / Vol. 81, No. 139 / Wednesday, July 20, 2016 / Rules and Regulations                                          47009

                                               By order of the Board of Governors of the              Title 49 of the United States Code.                      • Implementation of RVSM would
                                             Federal Reserve System, July 13, 2016.                   Sections 106(f), 40113, and 44701                     require ‘‘sound operational judgment
                                             Robert deV. Frierson,                                    authorize the Administrator to prescribe              supported by an assessment of system
                                             Secretary of the Board.                                  regulations necessary for aviation safety.            performance based on: Aircraft altitude-
                                                Billing Code: 6210–01–P                               Section 40103 authorizes the                          keeping capability, operational
                                             [FR Doc. 2016–16969 Filed 7–19–16; 8:45 am]              Administrator to prescribe regulations                considerations, system performance
                                             BILLING CODE 6210–01–P                                   to enhance the efficiency of the national             monitoring, and risk assessment.’’
                                                                                                      airspace. This rulemaking is within the                  In response to the findings made by
                                                                                                      scope of these authorities because it                 the Vertical Separation Program, the
                                                                                                      removes an existing safety and airspace-              FAA began a two-phase implementation
                                             DEPARTMENT OF TRANSPORTATION
                                                                                                      related regulation that the FAA no                    of RVSM operations for aircraft
                                             Federal Aviation Administration                          longer finds necessary for aviation                   registered in the United States (U.S.). In
                                                                                                      safety.                                               1997, and as the first phase, the FAA
                                             14 CFR Part 91                                                                                                 published two amendments to part 91 of
                                                                                                      I. Overview of Final Rule                             Title 14 of the Code of Federal
                                             [Docket No.: FAA–2015–1746; Amdt. No.                       This action amends Appendix G of                   Regulations (14 CFR). The first
                                             91–342]                                                  part 91 of Title 14 of the Code of Federal            amendment established § 91.706
                                                                                                      Regulations (14 CFR) by removing the                  (Operations within airspace designed as
                                             RIN 2120–AK54
                                                                                                      requirement that any applicant for a                  Reduced Vertical Separation Minimum
                                             Changes to the Application                               Reduced Vertical Separation Minimum                   Airspace), which, among other things,
                                             Requirements for Authorization To                        (RVSM) authorization must submit an                   allows operators of U.S.-registered
                                             Operate in Reduced Vertical                              RVSM maintenance program to the FAA                   aircraft to fly in RVSM airspace outside
                                             Separation Minimum Airspace                              for approval.                                         of the U.S. Appendix G (Operations in
                                                                                                      II. Background                                        Reduced Vertical Separation Minimum
                                             AGENCY:  Federal Aviation                                                                                      (RVSM) Airspace), was added which
                                             Administration (FAA), DOT.                                  The FAA’s vertical separation                      contained a set of operational, aircraft
                                             ACTION: Final rule.                                      standards establish the vertical distance             design, and other standards applicable
                                                                                                      that must separate aircraft routes in the             to those seeking to operate in RVSM
                                             SUMMARY:    This action revises the FAA’s                national airspace system. In the early                airspace. See Reduced Vertical
                                             requirements for an application to                       1970’s, rising air-traffic volume and fuel            Separation Minimum Operations, (62
                                             operate in Reduced Vertical Separation                   costs sparked an interest in reducing                 FR 17480; Apr. 9, 1997). Appendix G
                                             Minimum (RVSM) airspace and                              vertical separation standards for aircraft            includes the requirement that all
                                             eliminates the burden and expense of                     operating above flight level (FL) 290                 applicants for RVSM authorization must
                                             developing, processing, and approving                    (above 18,000 ft., flight levels are                  submit an approved RVSM maintenance
                                             RVSM maintenance programs. As a                          assigned in 500-ft. increments; FL290                 program to the FAA.
                                             result of this revision, an applicant to                 represents an pressure altitude of 29,000                The second phase of RVSM
                                             operate in RVSM airspace will no longer                  ft. referenced to a barometric pressure of            implementation occurred in October
                                             be required to develop and submit an                     29.92 inches at sea level). At the time,              2003, with the publication of a second
                                             RVSM maintenance program solely for                      the FAA required aircraft operating                   RVSM-related FAA rulemaking.
                                             the purpose of obtaining an RVSM                         above FL290 to maintain a minimum of                  Reduced Vertical Separation Minimum
                                             authorization. Because of other,                         2,000 ft. of vertical separation. Use of              in Domestic Airspace, (68 FR 61304;
                                             independent FAA airworthiness                            high-altitude routes was desirable,                   Oct. 27, 2003 and 68 FR 70132; Dec. 17,
                                             regulations, all aircraft operators remain               however, because the diminished                       2003). The 2003 rule introduced RVSM
                                             required to maintain RVSM equipment                      atmospheric drag at these altitudes                   airspace over the U.S. and, like the 1997
                                             in an airworthy condition.                               results in enhanced aircraft efficiency               rulemaking, required all U.S.-registered
                                             DATES: Effective August 19, 2016.                        and a corresponding decrease in fuel                  RVSM operators to comply with the
                                                                                                      consumption. Operators, therefore,                    application, operations, and aircraft
                                             ADDRESSES: For information on where to
                                                                                                      sought and continue to seek not only the              design requirements of part 91,
                                             obtain copies of rulemaking documents
                                                                                                      most direct routes, but also the most                 appendix G. The FAA’s RVSM program
                                             and other information related to this
                                                                                                      efficient altitudes for operation of their            allows for 1,000 ft. of vertical separation
                                             final rule, see ‘‘How To Obtain
                                                                                                      aircraft. Higher demand for these high-               for aircraft between FL290 and FL410 in
                                             Additional Information’’ in the                                                                                U.S. airspace. Before the 2003 rule, air
                                                                                                      altitude routes has resulted in greater
                                             SUPPLEMENTARY INFORMATION section of
                                                                                                      congestion.                                           traffic controllers could only assign
                                             this document.                                                                                                 Instrument Flight Rules (IFR) aircraft
                                                                                                         In 1981, the FAA initiated the Vertical
                                             FOR FURTHER INFORMATION CONTACT: For                     Studies Program. This program, in                     flying at FL290 and above to FL290,
                                             technical questions concerning this                      conjunction with the RTCA (formerly                   310, 330, 350, 370, 390, and 410 since
                                             action, contact Charles Fellows,                         Radio Technical Commission for                        the existing vertical separation standard
                                             Aviation Safety Inspector, Avionics                      Aeronautics) Special Committee (SC)–                  was 2,000 ft. After the rule changes, IFR
                                             Branch, Aircraft Maintenance Division,                   150 and the International Civil Aviation              aircraft could also fly at FL300, 320,
                                             Flight Standards Services, AFS–360,                      Organization (ICAO) Review of General                 340, 360, 380, and 400—nearly doubling
                                             Federal Aviation Administration, 950                     Concept of Separation Panel (RGCSP),                  capacity within this particular segment
                                             L’Enfant Plaza North SW., Washington,                    determined:                                           of airspace, mitigating the fuel penalties
                                             DC 20024; telephone (202) 267–1706;                         • RVSM is ‘‘technically feasible
rmajette on DSK2TPTVN1PROD with RULES




                                                                                                                                                            attributed to flying at sub-optimum
                                             email Charles.Fellows@faa.gov.                           without imposing unreasonably                         altitudes, and increasing the flexibility
                                             SUPPLEMENTARY INFORMATION:                               demanding technical requirements on                   of air traffic control.
                                                                                                      the equipment;’’                                         In 2008, the FAA reviewed its RVSM
                                             Authority for This Rulemaking                               • RVSM could provide ‘‘significant                 authorizations, which applied to more
                                               The FAA’s authority to issue rules                     benefits in terms of economy and en-                  than 15,000 U.S.-registered aircraft. The
                                             regarding aviation safety is found in                    route airspace capacity;’’ and                        FAA’s evaluation found that the existing


                                        VerDate Sep<11>2014   14:53 Jul 19, 2016   Jkt 238001   PO 00000   Frm 00009   Fmt 4700   Sfmt 4700   E:\FR\FM\20JYR1.SGM   20JYR1



Document Created: 2018-02-08 07:57:16
Document Modified: 2018-02-08 07:57:16
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule.
DatesThis interim final rule is effective on August 1, 2016. Comments on the interim final rule must be received on or before August 30, 2016.
ContactKatherine H. Wheatley, Associate General Counsel (202/452-3779), or Mehrnoush Bigloo, Senior Attorney (202/475-6361), Legal Division, Board of Governors of the Federal Reserve System, 20th Street and Constitution Ave. NW., Washington, DC 20551. For users of Telecommunication Device for the Deaf (TDD) only, contact 202/263-4869.
FR Citation81 FR 47006 
RIN Number7100 AE55
CFR AssociatedAdministrative Practice and Procedure; Claims; Crime; Equal Access to Justice; Lawyers and Penalties

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR