81 FR 8639 - Rules of Practice and Procedure; Civil Money Penalty Inflation Adjustment
FEDERAL HOUSING FINANCE AGENCY Federal Register Volume 81, Issue 34 (February 22, 2016)
Federal Register Volume 81, Issue 34 (February 22, 2016)
| Page Range | 8639-8642 | |
| FR Document | 2016-03631 |
[Federal Register Volume 81, Number 34 (Monday, February 22, 2016)] [Rules and Regulations] [Pages 8639-8642] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-03631] ======================================================================= ----------------------------------------------------------------------- FEDERAL HOUSING FINANCE AGENCY 12 CFR Parts 1209 and 1250 RIN 2590-AA77 Rules of Practice and Procedure; Civil Money Penalty Inflation Adjustment AGENCY: Federal Housing Finance Agency. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Federal Housing Finance Agency (FHFA) is issuing this final rule amending its rules of practice and procedure to adjust each civil money penalty within its jurisdiction to account for inflation, pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996. DATES: Effective February 22, 2016. FOR FURTHER INFORMATION CONTACT: Stephen E. Hart, Deputy General Counsel, at (202) 649-3053, [email protected], or Frank R. Wright, Senior Counsel, at (202) 649-3087, [email protected] (not toll-free numbers); Federal Housing Finance Agency, 400 7th Street SW., Washington, DC 20219. The telephone number for the Telecommunications Device for the Hearing Impaired is: (800) 877-8339 (TDD only). SUPPLEMENTARY INFORMATION: I. Background The FHFA is an independent agency of the Federal government, and the financial safety and soundness regulator of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), as well as the Federal Home Loan Banks (collectively, the Banks) and the Office of Finance under authority granted by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act).\1\ FHFA oversees the Enterprises and Banks (collectively, the regulated entities) to ensure that they operate in a safe and sound manner and [[Page 8640]] maintain liquidity in the housing finance market in accordance with applicable laws, rules and regulations. To that end, FHFA is vested with broad supervisory discretion and specific civil administrative enforcement powers, similar to such authority granted by Congress to the Federal bank regulatory agencies.\2\ In particular, section 1376 of the Act (12 U.S.C. 4636) empowers FHFA to impose civil money penalties under specific conditions. FHFA's Rules of Practice and Procedure (12 CFR part 1209) govern cease and desist proceedings, civil money penalty assessment proceedings, and other administrative adjudications.\3\ FHFA's Flood Insurance regulation (12 CFR part 1250) governs flood insurance responsibilities as they pertain to the Enterprises.\4\ --------------------------------------------------------------------------- \1\ See Federal Housing Enterprises Financial Safety and Soundness Act of 1992, Public Law 102-550, 106 Stat. 4078 (Oct. 28, 1992) as amended by the Federal Housing Finance Regulatory Reform Act of 2008, Public Law 110-289, 122 Stat. 2654, sections 1101 et seq. (July 30, 2008). \2\ See Safety and Soundness Act, 12 U.S.C. 4513 and 4631-4641. \3\ See 12 CFR part 1209. \4\ See 12 CFR part 1250. --------------------------------------------------------------------------- The Inflation Adjustment Act The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 (the Inflation Adjustment Act) requires FHFA, as well as other Federal agencies with the authority to issue civil money penalties (CMPs), to adjust by regulation the maximum amount of each CMP authorized by law that the agency has jurisdiction to administer.\5\ The Inflation Adjustment Act required agencies to make an initial adjustment of their CMPs upon the statute's enactment, and further requires agencies to make additional adjustments on an ongoing basis, every four years following the initial adjustment. The purpose of these periodic adjustments is to maintain the deterrent effect of CMPs and promote compliance with the law. Subpart E of FHFA's Rules of Practice and Procedure sets forth the Civil Money Penalty Inflation Adjustment amounts and prescribes their applicability. See 12 CFR 1209.81.\6\ --------------------------------------------------------------------------- \5\ See 28 U.S.C. 2461 note. \6\ Periodic inflation adjustments of the FHFA Flood Insurance regulation are set forth in 12 CFR 1250.3. --------------------------------------------------------------------------- Under the Inflation Adjustment Act, the inflation adjustment for each applicable CMP is determined by increasing the maximum CMP amount per violation by a cost-of-living adjustment. As described in detail below, the Inflation Adjustment Act provides that this cost-of-living adjustment reflect the percentage increase in the Consumer Price Index since the CMPs were last adjusted or established, and rounded in accordance with rules provided in the statute.\7\ --------------------------------------------------------------------------- \7\ The Inflation Adjustment Act specifically identifies the Consumer Price Index for All Urban Consumers published by the United States Department of Labor (CPI-U). --------------------------------------------------------------------------- II. Differences When promulgating any regulation that may have future affect relating to the Banks, the Director is required by section 1201 of HERA to consider the differences between the Banks and the Enterprises with respect to the Banks' cooperative ownership structure; mission of providing liquidity to members; affordable housing and community development mission; capital structure; and joint and several liability. See section 1201 Public Law 110-289, 122 Stat. 2782-83 (amending 12 U.S.C. 4513(f)[sic]).\8\ The Director considered the differences between the Banks and the Enterprises, as they relate to the above factors, and determined that the rule is appropriate. In sum, the five differences identified in section 1201 of HERA do not require a different enforcement regulation for the Banks than for the Enterprises. Therefore, the comparative analysis under section 1201 of HERA undertaken for the proposed rule required no changes. --------------------------------------------------------------------------- \8\ So in original; no paragraphs (d) and (e) were enacted. See 12 U.S.C.A. 4513 n 1. --------------------------------------------------------------------------- III. Description of the Rule This final rule adjusts the maximum penalty amount within each of the three tiers specified in 12 U.S.C. 4636 by amending the table contained in 12 CFR 1209.80 to reflect the new adjusted maximum penalty amount that FHFA may impose upon a regulated entity or any entity- affiliated party within each tier. The increases in maximum penalty amounts contained in this final rule may not necessarily affect the amount of any CMP that FHFA may seek for a particular violation; FHFA would calculate each CMP on a case-by-case basis in light of a variety of factors.\9\ This final rule also adjusts the maximum penalty amounts for violations under the FHFA Flood Insurance regulation by amending the text of 12 CFR 1250.3 to reflect the new adjusted maximum penalty amount that FHFA may impose for violations under that regulation. --------------------------------------------------------------------------- \9\ See, e.g., 12 CFR 1209.7(c); FHFA Enforcement Policy, AB 2013-03 (May 31, 2013). --------------------------------------------------------------------------- The Inflation Adjustment Act directs federal agencies to calculate each CMP adjustment as the percentage by which the CPI-U for June of the calendar year preceding the adjustment exceeds the CPI-U for June of the calendar year in which the amount of each CMP was last set or adjusted. The maximum CMP amounts for FHFA penalties under 12 U.S.C. 4636 were set in 2008.\10\ Since FHFA is making this round of adjustments in calendar year 2016, and the maximum CMP amounts were last set in calendar year 2008, the inflation adjustment amount for each maximum CMP amount was calculated by comparing the CPI-U for June 2008 (218.8) with the CPI-U for June 2015 (238.6), resulting in an inflation factor of 1.0905. For each maximum CMP amount, the product of this inflation adjustment and the previous maximum penalty amount was then rounded in accordance with the specific requirements of the Inflation Adjustment Act, and was then summed with the previous maximum penalty amount to determine the new adjusted maximum penalty amount.\11\ The table below sets out these items accordingly. --------------------------------------------------------------------------- \10\ See 12 U.S.C. 4636. \11\ The statute's rounding rules require that each increase be rounded to the nearest multiple as follows: $10 in the case of penalties less than or equal to $100; $100 in the case of penalties greater than $100 but less than or equal to $1,000; $1,000 in the case of penalties greater than $1,000 but less than or equal to $10,000; $5,000 in the case of penalties greater than $10,000 but less than or equal to $100,000; $10,000 in the case of penalties greater than $100,000 but less than or equal to $200,000; and $25,000 in the case of penalties greater than $200,000. ---------------------------------------------------------------------------------------------------------------- Previous New adjusted maximum Inflation Rounded maximum U.S. Code citation Description penalty increase inflation penalty amount increase amount ---------------------------------------------------------------------------------------------------------------- 12 U.S.C. 4636(b)(1).......... First Tier...... 10,000 905 1,000 11,000 12 U.S.C. 4636(b)(2).......... Second Tier..... 50,000 4,525 5,000 55,000 12 U.S.C. 4636(b)(4).......... Third Tier 2,000,000 181,000 175,000 2,175,000 (Entity- affiliated party and Regulated entity). ---------------------------------------------------------------------------------------------------------------- [[Page 8641]] The CMP for FHFA penalties under the Flood Insurance regulation were set in 2009.\12\ Since FHFA is making this round of adjustments in calendar year 2016, and the maximum CMP amounts were last set in calendar year 2009, the inflation adjustment amount for each maximum CMP amount was calculated by comparing the CPI-U for June 2009 (215.7) with the CPI-U for June 2015 (238.6), resulting in an inflation factor of 1.1061. The table below sets out these items accordingly. --------------------------------------------------------------------------- \12\ See 74 FR 2349 (Jan. 15, 2009). ---------------------------------------------------------------------------------------------------------------- Previous New adjusted maximum Inflation Rounded maximum U.S. Code citation Description penalty increase inflation penalty amount increase amount ---------------------------------------------------------------------------------------------------------------- 42 U.S.C. 4012a(f)(5)......... Maximum penalty 485 51.55 100 585 per violation. 42 U.S.C. 4012a(f)(5)......... Maximum total 140,000 14,854 10,000 150,000 penalties assessed against an Enterprise in a calendar year. ---------------------------------------------------------------------------------------------------------------- IV. Regulatory Impact Administrative Procedure Act FHFA finds good cause that notice and an opportunity to comment on this document are unnecessary under section 553(b) of the Administrative Procedure Act (APA), 5 U.S.C. 553(b). This rulemaking conforms with and is consistent with the statutory directive set forth in the Inflation Adjustment Act. As a result, there are no issues of policy discretion about which to seek public comment. Accordingly, FHFA is issuing the amendments as a final rule. In addition, FHFA finds good cause to make this rule effective upon publication of this document in the Federal Register under the APA. See 5 U.S.C. 553(d). This final rule does not impose any additional responsibilities on any entity and therefore requires no adjustment to any entity's current operations, policies, or practices. Instead, it simply adjusts the amount of each CMP tier as dictated by the Inflation Adjustment Act. Regulatory Flexibility Act Pursuant to the Regulatory Flexibility Act (RFA),\13\ an agency must prepare a regulatory flexibility analysis for all proposed and final rules that describes the impact of the rule on small entities, unless the head of an agency certifies that the rule will not have ``a significant economic impact on a substantial number of small entities.'' However, the RFA applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to the APA.\14\ As discussed above, FHFA has determined for good cause that the APA does not require notice and public comment on this rule and, therefore, FHFA is not publishing a general notice of proposed rulemaking. Thus, the RFA does not apply to this final rule. --------------------------------------------------------------------------- \13\ 5 U.S.C. 603. \14\ 5 U.S.C. 603(a), 604(a). --------------------------------------------------------------------------- Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) requires that regulations involving the collection of information receive clearance from the Office of Management and Budget (OMB). This rule contains no such collection of information requiring OMB approval under the Paperwork Reduction Act. Consequently, no information has been submitted to OMB for review. List of Subjects 12 CFR Part 1209 Administrative practice and procedure, Penalties. 12 CFR Part 1250 Flood insurance, Government-sponsored enterprises, Penalties, Reporting and recordkeeping requirements. Accordingly, for the reasons stated in the SUPPLEMENTARY INFORMATION and under the authority of 12 U.S.C. 4513b and 12 U.S.C. 4526, the Federal Housing Finance Agency hereby amends subchapters A and C of chapter XII of Title 12 of the Code of Federal Regulations as follows: SUBCHAPTER A--ORGANIZATION AND OPERATIONS PART 1209--RULES OF PRACTICE AND PROCEDURE 0 1. The authority citation for part 1209 continues to read as follows: Authority: 5 U.S.C. 554, 556, 557, and 701 et seq.; 12 U.S.C. 1430c(d); 12 U.S.C. 4501, 4502, 4503, 4511, 4513, 4513b, 4517, 4526, 4566(c)(1) and (c)(7), 4581-4588, 4631-4641; and 28 U.S.C. 2461 note. 0 2. Revise Sec. 1209.80 to read as follows: Sec. 1209.80 Inflation adjustments. The maximum amount of each civil money penalty within FHFA's jurisdiction, as set by the Safety and Soundness Act and thereafter adjusted in accordance with the Inflation Adjustment Act, is as follows: ------------------------------------------------------------------------ New adjusted maximum U.S. Code citation Description penalty amount ------------------------------------------------------------------------ 12 U.S.C. 4636(b)(1)........... First Tier............. $11,000 12 U.S.C. 4636(b)(2)........... Second Tier............ 55,000 12 U.S.C. 4636(b)(4)........... Third Tier (Entity- 2,175,000 Affiliated party). 12 U.S.C. 4636(b)(4)........... Third Tier (Regulated 2,175,000 entity). ------------------------------------------------------------------------ 0 3. Revise Sec. 1209.81 to read as follows: Sec. 1209.81 Applicability. The inflation adjustments set out in Sec. 1209.80 shall apply to civil money penalties assessed in accordance with the provisions of the Safety and Soundness Act, 12 U.S.C. 4636, and subparts B and C of this part, for [[Page 8642]] violations occurring after February 22, 2016. SUBCHAPTER C--ENTERPRISES PART 1250--FLOOD INSURANCE 0 4. The authority citation for part 1250 continues to read as follows: Authority: 12 U.S.C. 4521(a)(4) and 4526; 28 U.S.C. 2461 note; 42 U.S.C. 4001 note; 42 U.S.C. 4012a(f)(3), (4), (5), (8), (9), and (10). 0 5. Revise Sec. 1250.3(c) to read as follows: Sec. 1250.3 Civil money penalties. * * * * * (c) Amount. The maximum civil money penalty amount is $485 for each violation that occurs before February 22, 2016, with total penalties not to exceed $140,000. For violations that occur on or after February 22, 2016, the civil money penalty under this section may not exceed $585 for each violation, with total penalties assessed under this section against an Enterprise during any calendar year not to exceed $150,000. * * * * * Dated: February 15, 2016. Melvin L. Watt, Director, Federal Housing Finance Agency. [FR Doc. 2016-03631 Filed 2-19-16; 8:45 am] BILLING CODE 8070-01-P
![8639
Rules and Regulations Federal Register
Vol. 81, No. 34
Monday, February 22, 2016
This section of the FEDERAL REGISTER The proposed rule had a 30-day FEDERAL HOUSING FINANCE
contains regulatory documents having general comment period, during which OPM AGENCY
applicability and legal effect, most of which received no comments.
are keyed to and codified in the Code of 12 CFR Parts 1209 and 1250
Federal Regulations, which is published under Regulatory Flexibility Act
50 titles pursuant to 44 U.S.C. 1510. RIN 2590–AA77
I certify that these regulations will not
The Code of Federal Regulations is sold by have a significant economic impact on Rules of Practice and Procedure; Civil
the Superintendent of Documents. Prices of a substantial number of small entities Money Penalty Inflation Adjustment
new books are listed in the first FEDERAL
because they will affect only Federal AGENCY: Federal Housing Finance
REGISTER issue of each week.
agencies and employees. Agency.
List of Subjects in 5 CFR Part 532 ACTION: Final rule.
OFFICE OF PERSONNEL
MANAGEMENT Administrative practice and SUMMARY: The Federal Housing Finance
procedure, Freedom of information, Agency (FHFA) is issuing this final rule
5 CFR Part 532 Government employees, Reporting and amending its rules of practice and
recordkeeping requirements, Wages. procedure to adjust each civil money
RIN 3206–AN20 penalty within its jurisdiction to
U.S. Office of Personnel Management. account for inflation, pursuant to the
Prevailing Rate Systems; Definition of Beth F. Cobert, Federal Civil Penalties Inflation
Hancock County, Mississippi, to a Acting Director. Adjustment Act of 1990, as amended by
Nonappropriated Fund Federal Wage the Debt Collection Improvement Act of
System Wage Area Accordingly, the U.S. Office of 1996.
Personnel Management is amending 5 DATES: Effective February 22, 2016.
AGENCY: U.S. Office of Personnel CFR part 532 as follows:
Management. FOR FURTHER INFORMATION CONTACT:
PART 532—PREVAILING RATE Stephen E. Hart, Deputy General
ACTION: Final rule.
SYSTEMS Counsel, at (202) 649–3053,
SUMMARY: The U.S. Office of Personnel Stephen.Hart@fhfa.gov, or Frank R.
Management (OPM) is issuing a final Wright, Senior Counsel, at (202) 649–
■ 1. The authority citation for part 532 3087, Frank.Wright@fhfa.gov (not toll-
rule to define Hancock County, continues to read as follows:
Mississippi, as an area of application free numbers); Federal Housing Finance
county to the Harrison, MS, Authority: 5 U.S.C. 5343, 5346; § 532.707 Agency, 400 7th Street SW.,
nonappropriated fund (NAF) Federal also issued under 5 U.S.C. 552. Washington, DC 20219. The telephone
Wage System (FWS) wage area. This number for the Telecommunications
■ 2. Appendix D to subpart B is
change is necessary because there are Device for the Hearing Impaired is: (800)
amended by revising the wage area
four NAF FWS employees working in 877–8339 (TDD only).
listing for the Harrison, Mississippi,
Hancock County, and the county is not NAF wage areas to read as follows: SUPPLEMENTARY INFORMATION:
currently defined to a NAF wage area. I. Background
DATES:
Appendix D to Subpart B of Part 532—
Nonappropriated Fund Wage and The FHFA is an independent agency
Effective date: This regulation is
Survey Areas of the Federal government, and the
effective on February 22, 2016.
financial safety and soundness regulator
Applicability date: This change applies
* * * * * of the Federal National Mortgage
on the first day of the first applicable
MISSISSIPPI Association (Fannie Mae) and the
pay period beginning on or after March
Federal Home Loan Mortgage
23, 2016.
* * * * * Corporation (Freddie Mac) (collectively,
FOR FURTHER INFORMATION CONTACT: the Enterprises), as well as the Federal
Harrison
Madeline Gonzalez, by telephone at Home Loan Banks (collectively, the
(202) 606–2858 or by email at pay-leave- Survey Area
Mississippi: Banks) and the Office of Finance under
policy@opm.gov. authority granted by the Federal
Harrison
SUPPLEMENTARY INFORMATION: On August Housing Enterprises Financial Safety
27, 2015, OPM issued a proposed rule Area of Application. Survey area plus:
and Soundness Act of 1992 (Safety and
(80 FR 51963) to define Hancock Alabama: Soundness Act).1 FHFA oversees the
County, MS, as an area of application Mobile Enterprises and Banks (collectively, the
county to the Harrison, MS, NAF FWS Mississippi: regulated entities) to ensure that they
mstockstill on DSK4VPTVN1PROD with RULES
wage area. Forrest operate in a safe and sound manner and
FPRAC, the national labor- Hancock
management committee responsible for Jackson 1 See Federal Housing Enterprises Financial
advising OPM on matters concerning Safety and Soundness Act of 1992, Public Law 102–
the pay of FWS employees, reviewed * * * * * 550, 106 Stat. 4078 (Oct. 28, 1992) as amended by
the Federal Housing Finance Regulatory Reform Act
and recommended this change by [FR Doc. 2016–03588 Filed 2–19–16; 8:45 am]
of 2008, Public Law 110–289, 122 Stat. 2654,
consensus. BILLING CODE 6325–39–P sections 1101 et seq. (July 30, 2008).
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maintain liquidity in the housing Under the Inflation Adjustment Act, may impose upon a regulated entity or
finance market in accordance with the inflation adjustment for each any entity-affiliated party within each
applicable laws, rules and regulations. applicable CMP is determined by tier. The increases in maximum penalty
To that end, FHFA is vested with broad increasing the maximum CMP amount amounts contained in this final rule
supervisory discretion and specific civil per violation by a cost-of-living may not necessarily affect the amount of
administrative enforcement powers, adjustment. As described in detail any CMP that FHFA may seek for a
similar to such authority granted by below, the Inflation Adjustment Act particular violation; FHFA would
Congress to the Federal bank regulatory provides that this cost-of-living calculate each CMP on a case-by-case
agencies.2 In particular, section 1376 of adjustment reflect the percentage basis in light of a variety of factors.9
the Act (12 U.S.C. 4636) empowers increase in the Consumer Price Index This final rule also adjusts the
FHFA to impose civil money penalties since the CMPs were last adjusted or maximum penalty amounts for
under specific conditions. FHFA’s Rules established, and rounded in accordance violations under the FHFA Flood
of Practice and Procedure (12 CFR part with rules provided in the statute.7 Insurance regulation by amending the
1209) govern cease and desist text of 12 CFR 1250.3 to reflect the new
II. Differences
proceedings, civil money penalty adjusted maximum penalty amount that
assessment proceedings, and other When promulgating any regulation FHFA may impose for violations under
administrative adjudications.3 FHFA’s that may have future affect relating to that regulation.
Flood Insurance regulation (12 CFR part the Banks, the Director is required by
1250) governs flood insurance section 1201 of HERA to consider the The Inflation Adjustment Act directs
responsibilities as they pertain to the differences between the Banks and the federal agencies to calculate each CMP
Enterprises.4 Enterprises with respect to the Banks’ adjustment as the percentage by which
cooperative ownership structure; the CPI–U for June of the calendar year
The Inflation Adjustment Act mission of providing liquidity to preceding the adjustment exceeds the
The Federal Civil Penalties Inflation members; affordable housing and CPI–U for June of the calendar year in
Adjustment Act of 1990, as amended by community development mission; which the amount of each CMP was last
the Debt Collection Improvement Act of capital structure; and joint and several set or adjusted. The maximum CMP
1996 (the Inflation Adjustment Act) liability. See section 1201 Public Law amounts for FHFA penalties under 12
requires FHFA, as well as other Federal 110–289, 122 Stat. 2782–83 (amending U.S.C. 4636 were set in 2008.10 Since
agencies with the authority to issue civil 12 U.S.C. 4513(f)[sic]).8 The Director FHFA is making this round of
money penalties (CMPs), to adjust by considered the differences between the adjustments in calendar year 2016, and
regulation the maximum amount of each Banks and the Enterprises, as they relate the maximum CMP amounts were last
CMP authorized by law that the agency to the above factors, and determined set in calendar year 2008, the inflation
has jurisdiction to administer.5 The that the rule is appropriate. In sum, the adjustment amount for each maximum
Inflation Adjustment Act required five differences identified in section CMP amount was calculated by
agencies to make an initial adjustment 1201 of HERA do not require a different comparing the CPI–U for June 2008
of their CMPs upon the statute’s enforcement regulation for the Banks (218.8) with the CPI–U for June 2015
enactment, and further requires agencies than for the Enterprises. Therefore, the (238.6), resulting in an inflation factor of
to make additional adjustments on an comparative analysis under section 1.0905. For each maximum CMP
ongoing basis, every four years 1201 of HERA undertaken for the amount, the product of this inflation
following the initial adjustment. The proposed rule required no changes. adjustment and the previous maximum
purpose of these periodic adjustments is penalty amount was then rounded in
to maintain the deterrent effect of CMPs III. Description of the Rule accordance with the specific
and promote compliance with the law. This final rule adjusts the maximum requirements of the Inflation
Subpart E of FHFA’s Rules of Practice penalty amount within each of the three Adjustment Act, and was then summed
and Procedure sets forth the Civil tiers specified in 12 U.S.C. 4636 by with the previous maximum penalty
Money Penalty Inflation Adjustment amending the table contained in 12 CFR amount to determine the new adjusted
amounts and prescribes their 1209.80 to reflect the new adjusted maximum penalty amount.11 The table
applicability. See 12 CFR 1209.81.6 maximum penalty amount that FHFA below sets out these items accordingly.
Previous New adjusted
Rounded
maximum Inflation maximum
U.S. Code citation Description inflation
penalty increase penalty
increase
amount amount
12 U.S.C. 4636(b)(1) ........................ First Tier ........................................... 10,000 905 1,000 11,000
12 U.S.C. 4636(b)(2) ........................ Second Tier ...................................... 50,000 4,525 5,000 55,000
12 U.S.C. 4636(b)(4) ........................ Third Tier (Entity-affiliated party and 2,000,000 181,000 175,000 2,175,000
Regulated entity).
2 See Safety and Soundness Act, 12 U.S.C. 4513 Consumers published by the United States equal to $100; $100 in the case of penalties greater
and 4631–4641. Department of Labor (CPI–U). than $100 but less than or equal to $1,000; $1,000
mstockstill on DSK4VPTVN1PROD with RULES
3 See 12 CFR part 1209. 8 So in original; no paragraphs (d) and (e) were
in the case of penalties greater than $1,000 but less
4 See 12 CFR part 1250. enacted. See 12 U.S.C.A. 4513 n 1. than or equal to $10,000; $5,000 in the case of
5 See 28 U.S.C. 2461 note. 9 See, e.g., 12 CFR 1209.7(c); FHFA Enforcement
penalties greater than $10,000 but less than or equal
6 Periodic inflation adjustments of the FHFA Policy, AB 2013–03 (May 31, 2013). to $100,000; $10,000 in the case of penalties greater
Flood Insurance regulation are set forth in 12 CFR 10 See 12 U.S.C. 4636.
than $100,000 but less than or equal to $200,000;
1250.3. 11 The statute’s rounding rules require that each
and $25,000 in the case of penalties greater than
7 The Inflation Adjustment Act specifically increase be rounded to the nearest multiple as $200,000.
identifies the Consumer Price Index for All Urban follows: $10 in the case of penalties less than or
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![8642 Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Rules and Regulations
violations occurring after February 22, lead to loss of a primary load path NPRM proposed to require repetitive
2016. between the fuselage and the wing box, inspections of the skin hidden by the
SUBCHAPTER C—ENTERPRISES
and consequent reduced structural upper and lower splice fittings on both
integrity of the airplane. sides of the fuselage, and corrective
PART 1250—FLOOD INSURANCE DATES: This AD is effective March 28, action if necessary. We are issuing this
2016. AD to detect and correct fatigue
■ 4. The authority citation for part 1250 The Director of the Federal Register cracking of the hidden fuselage skin and
continues to read as follows: approved the incorporation by reference cracking, corrosion, and other damage to
Authority: 12 U.S.C. 4521(a)(4) and 4526; of a certain publication listed in this AD the splice fittings and adjacent visible
28 U.S.C. 2461 note; 42 U.S.C. 4001 note; 42 as of March 28, 2016. fuselage skin and structure that could
U.S.C. 4012a(f)(3), (4), (5), (8), (9), and (10). ADDRESSES: For service information lead to loss of a primary load path
identified in this final rule, contact between the fuselage and the wing box,
■ 5. Revise § 1250.3(c) to read as
Boeing Commercial Airplanes, and consequent reduced structural
follows:
Attention: Data & Services Management, integrity of the airplane.
§ 1250.3 Civil money penalties. P.O. Box 3707, MC 2H–65, Seattle, WA Comments
* * * * * 98124–2207; telephone 206–544–5000,
extension 1; fax 206–766–5680; Internet We gave the public the opportunity to
(c) Amount. The maximum civil
https://www.myboeingfleet.com. You participate in developing this AD. The
money penalty amount is $485 for each
may view this referenced service following presents the comments
violation that occurs before February 22,
information at the FAA, Transport received on the NPRM and the FAA’s
2016, with total penalties not to exceed
Airplane Directorate, 1601 Lind Avenue response to each comment. Boeing
$140,000. For violations that occur on or
SW., Renton, WA. For information on stated that it concurs with the NPRM.
after February 22, 2016, the civil money
the availability of this material at the United Parcel Service (UPS) and United
penalty under this section may not
FAA, call 425–227–1221. It is also Airlines stated that they have no
exceed $585 for each violation, with
available on the Internet at http:// comments on the NPRM. FedEx Express
total penalties assessed under this
www.regulations.gov by searching for provided information on how the NPRM
section against an Enterprise during any
and locating Docket No. FAA–2015– affects its fleet but made no requests.
calendar year not to exceed $150,000.
* * * * * 2456. Request Clarification on the Effect of
Examining the AD Docket Winglets on Accomplishment of the
Dated: February 15, 2016.
Proposed Actions
Melvin L. Watt, You may examine the AD docket on
Director, Federal Housing Finance Agency. the Internet at http:// Aviation Partners Boeing stated that
www.regulations.gov by searching for accomplishing Supplemental Type
[FR Doc. 2016–03631 Filed 2–19–16; 8:45 am]
and locating Docket No. FAA–2015– Certificate (STC) ST01920SE (http://rgl.
BILLING CODE 8070–01–P
2456; or in person at the Docket faa.gov/Regulatory_and_Guidance_
Management Facility between 9 a.m. Library/rgstc.nsf/0/59027f43b9a7486e
and 5 p.m., Monday through Friday, 86257b1d006591ee/$FILE/
DEPARTMENT OF TRANSPORTATION ST01920SE.pdf) does not affect the
except Federal holidays. The AD docket
contains this AD, the regulatory actions specified in the NPRM.
Federal Aviation Administration
We concur with the commenter. We
evaluation, any comments received, and
have redesignated paragraph (c) of the
14 CFR Part 39 other information. The address for the
proposed AD as paragraph (c)(1) of this
Docket Office (phone: 800–647–5527) is
[Docket No. FAA–2015–2456; Directorate AD and added new paragraph (c)(2) to
Docket Management Facility, U.S.
Identifier 2015–NM–032–AD; Amendment this AD to state that installation of STC
39–18401; AD 2016–04–07] Department of Transportation, Docket
ST01920SE does not affect the ability to
Operations, M–30, West Building
RIN 2120–AA64 accomplish the actions required by this
Ground Floor, Room W12–140, 1200
AD. Therefore, for airplanes on which
New Jersey Avenue SE., Washington,
Airworthiness Directives; The Boeing STC ST01920SE is installed, a ‘‘change
DC 20590.
Company Airplanes in product’’ alternative method of
FOR FURTHER INFORMATION CONTACT:
compliance (AMOC) approval request is
AGENCY: Federal Aviation Wayne Lockett, Aerospace Engineer, not necessary to comply with the
Administration (FAA), DOT. Airframe Branch, ANM–120S, FAA, requirements of 14 CFR 39.17.
ACTION: Final rule. Seattle Aircraft Certification Office
(ACO), 1601 Lind Avenue SW., Renton, Conclusion
SUMMARY: We are adopting a new WA 98057–3356; phone: 425–917–6447; We reviewed the relevant data,
airworthiness directive (AD) for all The fax: 425–917–6590; email: considered the comments received, and
Boeing Company Model 767 airplanes. wayne.lockett@faa.gov. determined that air safety and the
This AD was prompted by reports of SUPPLEMENTARY INFORMATION: public interest require adopting this AD
cracking at a central part of the with the change described previously
structure. This AD requires repetitive Discussion
and minor editorial changes. We have
inspections of the skin hidden by the We issued a notice of proposed determined that these minor changes:
upper and lower splice fittings on both rulemaking (NPRM) to amend 14 CFR • Are consistent with the intent that
mstockstill on DSK4VPTVN1PROD with RULES
sides of the fuselage, and corrective part 39 by adding an AD that would was proposed in the NPRM for
action if necessary. We are issuing this apply to all The Boeing Company Model correcting the unsafe condition; and
AD to detect and correct fatigue 767 airplanes. The NPRM published in • Do not add any additional burden
cracking of the hidden fuselage skin and the Federal Register on July 6, 2015 (80 upon the public than was already
cracking, corrosion, and other damage to FR 38408) (‘‘the NPRM’’). The NPRM proposed in the NPRM.
the splice fittings and adjacent visible was prompted by reports of cracking at We also determined that these
fuselage skin and structure that could a central part of the structure. The changes will not increase the economic
VerDate Sep<11>2014 16:09 Feb 19, 2016 Jkt 238001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\22FER1.SGM 22FER1](https://thefederalregister.org/doc/81_FR_8673/page/4.svg)
Document Created: 2016-02-19 23:56:55
Document Modified: 2016-02-19 23:56:55
| 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 | Final rule. | |
| Dates | Effective February 22, 2016. | |
| Contact | Stephen E. Hart, Deputy General Counsel, at (202) 649-3053, [email protected], or Frank R. Wright, Senior Counsel, at (202) 649-3087, [email protected] (not toll-free numbers); Federal Housing Finance Agency, 400 7th Street SW., Washington, DC 20219. The telephone number for the Telecommunications Device for the Hearing Impaired is: (800) 877-8339 (TDD only). | |
| FR Citation | 81 FR 8639 | |
| RIN Number | 2590-AA77 | |
| CFR Citation | 12
CFR
1209 12 CFR 1250 | |
| CFR Associated | Administrative Practice and Procedure; Penalties; Flood Insurance; Government-Sponsored Enterprises and Reporting and Recordkeeping Requirements |
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