82_FR_25821 82 FR 25715 - Civil Monetary Penalty Inflation Adjustment

82 FR 25715 - Civil Monetary Penalty Inflation Adjustment

MERIT SYSTEMS PROTECTION BOARD

Federal Register Volume 82, Issue 106 (June 5, 2017)

Page Range25715-25716
FR Document2017-11541

This final rule adjusts the level of civil monetary penalties (CMPs) in regulations maintained and enforced by the Merit Systems Protection Board (MSPB) with both an initial ``catch-up'' and annual adjustment under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act) and Office of Management and Budget (OMB) guidance.

Federal Register, Volume 82 Issue 106 (Monday, June 5, 2017)
[Federal Register Volume 82, Number 106 (Monday, June 5, 2017)]
[Rules and Regulations]
[Pages 25715-25716]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11541]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 82, No. 106 / Monday, June 5, 2017 / Rules 
and Regulations

[[Page 25715]]



MERIT SYSTEMS PROTECTION BOARD

5 CFR Part 1201


Civil Monetary Penalty Inflation Adjustment

AGENCY: Merit Systems Protection Board.

ACTION: Final rule.

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

SUMMARY: This final rule adjusts the level of civil monetary penalties 
(CMPs) in regulations maintained and enforced by the Merit Systems 
Protection Board (MSPB) with both an initial ``catch-up'' and annual 
adjustment under the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (the 2015 Act) and Office of Management and 
Budget (OMB) guidance.

DATES: Effective Date: June 5, 2017.

FOR FURTHER INFORMATION CONTACT: Jennifer Everling, Acting Clerk of the 
Board, Merit Systems Protection Board, 1615 M Street NW., Washington, 
DC 20419; Phone: (202) 653-7200; Fax: (202) 653-7130; or email: 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The Federal Civil Penalties Inflation Adjustment Act of 1990 (the 
1990 Act), Public Law 101-410, provided for the regular evaluation of 
CMPs by Federal agencies. Periodic inflationary adjustments of CMPs 
ensure that the consequences of statutory violations adequately reflect 
the gravity of such offenses and that CMPs are properly accounted for 
and collected by the Federal government. In April 1996, the 1990 Act 
was amended by the Debt Collection Improvement Act of 1996 (the 1996 
Act), Public Law 104-134, which required Federal agencies to adjust 
their CMPs at least once every four years. However, because 
inflationary adjustments to CMPs were statutorily capped at ten percent 
of the maximum penalty amount, but only required to be calculated every 
four years, CMPs in many cases did not correspond with the true measure 
of inflation over the preceding four-year period, leading to a decline 
in the real value of the penalty. To remedy this decline, the 2015 Act 
(section 701 of Pub. L. 114-74) requires agencies to adjust CMP amounts 
with an initial ``catch-up'' adjustment and make subsequent annual 
inflationary adjustments through a rulemaking using a methodology 
mandated by the legislation. The purpose of these adjustments is to 
maintain the deterrent effect of civil penalties.
    A civil monetary penalty is ``any penalty, fine, or other 
sanction'' that: (1) ``is for a specific amount'' or ``has a maximum 
amount'' under Federal law; and (2) that a Federal agency assesses or 
enforces ``pursuant to an administrative proceeding or a civil action 
in the Federal courts.''
    The MSPB is authorized to assess CMPs pursuant to 5 U.S.C. 
1215(a)(3) and 5 U.S.C. 7326 in disciplinary actions brought by the 
Special Counsel. The corresponding MSPB regulation for both CMPs is 5 
CFR 1201.126(a). As required by the 2015 Act, and pursuant to guidance 
issued by the OMB, the MSPB is now making a one-time catch-up 
adjustment to the CMPs within its jurisdiction, as well as an annual 
adjustment for 2017, according to the prescribed formulas.

II. Calculation of Adjustment

A. Initial Catch-Up Adjustment

    Shortly after enactment of the 2015 Act, OMB issued guidance on 
calculating the catch-up adjustment. See Memorandum from Shaun Donovan, 
Dir., OMB, to Heads of Executive Departments and Agencies re: 
Implementation of the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015, M-16-06 (Feb. 24, 2016). Pursuant to this 
guidance, the MSPB has identified applicable civil monetary penalties 
and calculated the catch-up adjustment. The calculated catch-up 
adjustment is based on the percent change between the Consumer Price 
Index for all Urban Consumers (CPI-U) for the month of October in the 
year of the previous adjustment of the CMP (or in the year of its 
establishment, if no adjustment has been made) and the October 2015 
CPI-U.
    Nevertheless, the 2015 Act specifies that the catch-up adjustment 
amount will in no case exceed 150% of the penalty amount which was in 
force at the enactment date of the 2015 Act. Therefore, the total 
catch-up penalty amount will not exceed 250% of the total maximum 
penalty amount on November 2, 2015.
    The CMP listed in 5 U.S.C. 1215(a)(3) was established in 1978 with 
the enactment of the Civil Service Reform Act of 1978 (CSRA), Public 
Law 95-454, section 202(a), 92 Stat. 1121-30 (Oct. 13, 1978), and 
originally codified at 5 U.S.C. 1207(b). That CMP was last amended by 
section 106 of the Whistleblower Protection Enhancement Act of 2012, 
Public Law 112-199, 12 Stat. 1468 (Nov. 27, 2012), now codified at 5 
U.S.C. 1215(a)(3), which provided for a CMP ``not to exceed $1,000''. 
Thus, the 2012 amendment of the CSRA serves as the base figure for the 
inflation calculation. Between October 2012 and October 2015, the CPI-U 
has increased by 102.819 percent. The post-catch-up adjustment penalty 
amount is obtained by multiplying the pre-adjustment penalty amount by 
the percent change in the CPI-U over the relevant time period, and 
rounding to the nearest dollar. Therefore, the maximum post-catch-up 
adjustment penalty under the CSRA is $1,000 x 1.02819 = $1,028.19, 
which rounds to $1,028. The post-catch-up adjustment penalty is less 
than 250 percent of the pre-adjustment penalty, so the limitation on 
the amount of the adjustment under section 4(b) of the 2015 Act is not 
implicated.
    The CMP authorized in 5 U.S.C. 7326 was established in 2012 by 
section 4 of the Hatch Act Modernization Act of 2012 (Hatch Act), 
Public Law 112-230, 126 Stat. 1617 (Dec. 28, 2012), which provided for 
a CMP ``not to exceed $1,000.'' Thus, the maximum post-catch-up 
adjustment penalty under the Hatch Act is $1,028.

B. 2017 Annual Adjustment

    OMB also issued guidance on calculating the annual inflationary 
adjustment for 2017. See Memorandum from Shaun Donovan, Dir., OMB, to 
Heads of Executive Departments and Agencies re: Implementation of the 
2017 Annual Adjustment Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of

[[Page 25716]]

2015, M-17-11 (Dec. 16, 2016). Therein, OMB notified agencies that the 
annual adjustment multiplier for 2017, based on the CPI-U, is 1.01636 
and that the 2017 annual adjustment amount is obtained by multiplying 
the catch-up adjustment penalty amount by the 2017 annual adjustment 
multiplier, and rounding to the nearest dollar. Therefore, the new 
maximum penalty under the CSRA and the Hatch Act is $1,028 x 1.01636 = 
$1,044.81, which rounds to $1,045.

III. Effective Date of Penalties

    The revised CMP amounts will go into effect on June 5, 2017. All 
violations for which CMPs are assessed after the effective date of this 
rule will be assessed at the adjusted penalty level regardless of 
whether the violation occurred before the effective date.

IV. Procedural Requirements

A. Administrative Procedures Act

    Pursuant to 5 U.S.C. 553(b), the MSPB has determined that good 
cause exists for waiving the general notice of proposed rulemaking and 
public comment procedures as to these technical amendments. The notice 
and comment procedures are being waived because Congress has 
specifically exempted agencies from these requirements when 
implementing the 2015 Act. The 2015 Act requires agencies to adjust 
CMPs with an initial catch-up adjustment through an interim final rule, 
which does not require the agency to complete a notice and comment 
process prior to promulgating the interim final rule. The 2015 Act also 
explicitly requires the agency to make subsequent annual adjustments 
notwithstanding 5 U.S.C. 553, the section of the Administrative 
Procedure Act that normally requires agencies to engage in notice and 
comment. It is also in the public interest that the adjusted rates for 
CMPs under the CSRA and the Hatch Act become effective as soon as 
possible to maintain their effective deterrent effect.

B. Regulatory Impact Analysis: Executive Order 12866

    The MSPB has determined that this is not a significant regulatory 
action under Executive Order 12866. Therefore, no regulatory impact 
analysis is required.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to prepare 
a regulatory flexibility analysis for rules unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. The RFA applies only to rules for 
which an agency is required to first publish a proposed rule. See 5 
U.S.C. 603(a) and 604(a). As discussed above, the 2015 Act does not 
require agencies to first publish a proposed rule when adjusting CMPs 
within their jurisdiction.
    Thus, the RFA does not apply to this final rule.

D. Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule under the Small Business Regulatory 
Enforcement Fairness Act (5 U.S.C. 804(2)). This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more;
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions; and
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
United States-based enterprises to compete with foreign-based 
enterprises.

E. Unfunded Mandate Reform Act of 1995

    This rule does not involve a Federal mandate that may result in the 
expenditure by State, local, or tribal governments, in the aggregate, 
or by the private sector, of $100 million or more and that such 
rulemaking will not significantly or uniquely affect small governments. 
Therefore, no actions were deemed necessary under the provisions of the 
Unfunded Mandate Reform Act of 1995 (2 U.S.C. 1532).

F. Executive Order 12630, Government Actions and Interference With 
Constitutionally Protected Property Rights

    This rule does not have takings implications.

G. Executive Order 13132, Federalism

    This rule does not have federalism implications. The rule does not 
have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government.

H. Executive Order 12988, Civil Justice Reform

    The MSPB has reviewed this rule in light of Executive Order 12988 
to eliminate ambiguity, minimize litigation, establish clear legal 
standards, and reduce burden.

I. Executive Order 13175, Consultation and Coordination With Indian 
Tribal Governments

    In accordance with Executive Order 13175, the MSPB has evaluated 
this rule and determined that it has no tribal implications.

J. Paperwork Reduction Act

    This document does not contain information collection requirements 
subject to the Paperwork Reduction Act of 1995, Public Law 104-13 (44 
U.S.C. Chapter 35).

List of Subjects in 5 CFR Part 1201

    Administrative practice and procedure, Civil rights, Government 
employees.

    For the reasons set forth above, 5 CFR part 1201 is amended as 
follows:

PART 1201--PRACTICES AND PROCEDURES

0
1. The authority citation for part 1201 continues to read as follows:

    Authority: 5 U.S.C. 1204, 1305, and 7701, and 38 U.S.C. 4331, 
unless otherwise noted.


Sec.  1201.126   [Amended]

0
2. Section 1201.126 is amended in paragraph (a) by removing ``$1,000'' 
and adding in its place ``$1,045'' and removing ``5 U.S.C. 1215(a)(3)'' 
and in its place adding ``5 U.S.C. 1215(a)(3), 7326; 28 U.S.C. 2461 
note''.

Jennifer Everling,
Acting Clerk of the Board.
[FR Doc. 2017-11541 Filed 6-2-17; 8:45 am]
BILLING CODE 7400-01-P



                                                                                                                                                                                             25715

                                             Rules and Regulations                                                                                          Federal Register
                                                                                                                                                            Vol. 82, No. 106

                                                                                                                                                            Monday, June 5, 2017



                                             This section of the FEDERAL REGISTER                    maximum penalty amount, but only                       has been made) and the October 2015
                                             contains regulatory documents having general            required to be calculated every four                   CPI–U.
                                             applicability and legal effect, most of which           years, CMPs in many cases did not                         Nevertheless, the 2015 Act specifies
                                             are keyed to and codified in the Code of                correspond with the true measure of                    that the catch-up adjustment amount
                                             Federal Regulations, which is published under           inflation over the preceding four-year                 will in no case exceed 150% of the
                                             50 titles pursuant to 44 U.S.C. 1510.                                                                          penalty amount which was in force at
                                                                                                     period, leading to a decline in the real
                                             The Code of Federal Regulations is sold by              value of the penalty. To remedy this                   the enactment date of the 2015 Act.
                                             the Superintendent of Documents.                        decline, the 2015 Act (section 701 of                  Therefore, the total catch-up penalty
                                                                                                     Pub. L. 114–74) requires agencies to                   amount will not exceed 250% of the
                                                                                                     adjust CMP amounts with an initial                     total maximum penalty amount on
                                             MERIT SYSTEMS PROTECTION                                ‘‘catch-up’’ adjustment and make                       November 2, 2015.
                                             BOARD                                                   subsequent annual inflationary                            The CMP listed in 5 U.S.C. 1215(a)(3)
                                                                                                     adjustments through a rulemaking using                 was established in 1978 with the
                                             5 CFR Part 1201                                         a methodology mandated by the                          enactment of the Civil Service Reform
                                                                                                     legislation. The purpose of these                      Act of 1978 (CSRA), Public Law 95–454,
                                             Civil Monetary Penalty Inflation                                                                               section 202(a), 92 Stat. 1121–30 (Oct.
                                             Adjustment                                              adjustments is to maintain the deterrent
                                                                                                     effect of civil penalties.                             13, 1978), and originally codified at 5
                                             AGENCY:    Merit Systems Protection                                                                            U.S.C. 1207(b). That CMP was last
                                                                                                        A civil monetary penalty is ‘‘any
                                             Board.                                                                                                         amended by section 106 of the
                                                                                                     penalty, fine, or other sanction’’ that: (1)
                                             ACTION:   Final rule.                                                                                          Whistleblower Protection Enhancement
                                                                                                     ‘‘is for a specific amount’’ or ‘‘has a
                                                                                                                                                            Act of 2012, Public Law 112–199, 12
                                             SUMMARY:   This final rule adjusts the                  maximum amount’’ under Federal law;                    Stat. 1468 (Nov. 27, 2012), now codified
                                             level of civil monetary penalties (CMPs)                and (2) that a Federal agency assesses or              at 5 U.S.C. 1215(a)(3), which provided
                                             in regulations maintained and enforced                  enforces ‘‘pursuant to an administrative               for a CMP ‘‘not to exceed $1,000’’. Thus,
                                             by the Merit Systems Protection Board                   proceeding or a civil action in the                    the 2012 amendment of the CSRA serves
                                             (MSPB) with both an initial ‘‘catch-up’’                Federal courts.’’                                      as the base figure for the inflation
                                             and annual adjustment under the                            The MSPB is authorized to assess                    calculation. Between October 2012 and
                                             Federal Civil Penalties Inflation                       CMPs pursuant to 5 U.S.C. 1215(a)(3)                   October 2015, the CPI–U has increased
                                             Adjustment Act Improvements Act of                      and 5 U.S.C. 7326 in disciplinary                      by 102.819 percent. The post-catch-up
                                             2015 (the 2015 Act) and Office of                       actions brought by the Special Counsel.                adjustment penalty amount is obtained
                                             Management and Budget (OMB)                             The corresponding MSPB regulation for                  by multiplying the pre-adjustment
                                             guidance.                                               both CMPs is 5 CFR 1201.126(a). As                     penalty amount by the percent change
                                             DATES: Effective Date: June 5, 2017.
                                                                                                     required by the 2015 Act, and pursuant                 in the CPI–U over the relevant time
                                                                                                     to guidance issued by the OMB, the                     period, and rounding to the nearest
                                             FOR FURTHER INFORMATION CONTACT:
                                                                                                     MSPB is now making a one-time catch-                   dollar. Therefore, the maximum post-
                                             Jennifer Everling, Acting Clerk of the
                                                                                                     up adjustment to the CMPs within its                   catch-up adjustment penalty under the
                                             Board, Merit Systems Protection Board,
                                             1615 M Street NW., Washington, DC
                                                                                                     jurisdiction, as well as an annual                     CSRA is $1,000 × 1.02819 = $1,028.19,
                                                                                                     adjustment for 2017, according to the                  which rounds to $1,028. The post-catch-
                                             20419; Phone: (202) 653–7200; Fax:
                                                                                                     prescribed formulas.                                   up adjustment penalty is less than 250
                                             (202) 653–7130; or email: mspb@
                                             mspb.gov.                                               II. Calculation of Adjustment                          percent of the pre-adjustment penalty,
                                                                                                                                                            so the limitation on the amount of the
                                             SUPPLEMENTARY INFORMATION:                              A. Initial Catch-Up Adjustment                         adjustment under section 4(b) of the
                                             I. Background                                                                                                  2015 Act is not implicated.
                                                                                                       Shortly after enactment of the 2015                     The CMP authorized in 5 U.S.C. 7326
                                                The Federal Civil Penalties Inflation                Act, OMB issued guidance on                            was established in 2012 by section 4 of
                                             Adjustment Act of 1990 (the 1990 Act),                  calculating the catch-up adjustment. See               the Hatch Act Modernization Act of
                                             Public Law 101–410, provided for the                    Memorandum from Shaun Donovan,                         2012 (Hatch Act), Public Law 112–230,
                                             regular evaluation of CMPs by Federal                   Dir., OMB, to Heads of Executive                       126 Stat. 1617 (Dec. 28, 2012), which
                                             agencies. Periodic inflationary                         Departments and Agencies re:                           provided for a CMP ‘‘not to exceed
                                             adjustments of CMPs ensure that the                     Implementation of the Federal Civil                    $1,000.’’ Thus, the maximum post-
                                             consequences of statutory violations                    Penalties Inflation Adjustment Act                     catch-up adjustment penalty under the
                                             adequately reflect the gravity of such                  Improvements Act of 2015, M–16–06                      Hatch Act is $1,028.
                                             offenses and that CMPs are properly                     (Feb. 24, 2016). Pursuant to this
                                             accounted for and collected by the                      guidance, the MSPB has identified                      B. 2017 Annual Adjustment
                                             Federal government. In April 1996, the                  applicable civil monetary penalties and                   OMB also issued guidance on
                                             1990 Act was amended by the Debt                        calculated the catch-up adjustment. The                calculating the annual inflationary
                                             Collection Improvement Act of 1996                      calculated catch-up adjustment is based                adjustment for 2017. See Memorandum
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                                             (the 1996 Act), Public Law 104–134,                     on the percent change between the                      from Shaun Donovan, Dir., OMB, to
                                             which required Federal agencies to                      Consumer Price Index for all Urban                     Heads of Executive Departments and
                                             adjust their CMPs at least once every                   Consumers (CPI–U) for the month of                     Agencies re: Implementation of the 2017
                                             four years. However, because                            October in the year of the previous                    Annual Adjustment Pursuant to the
                                             inflationary adjustments to CMPs were                   adjustment of the CMP (or in the year                  Federal Civil Penalties Inflation
                                             statutorily capped at ten percent of the                of its establishment, if no adjustment                 Adjustment Act Improvements Act of


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                                             25716                Federal Register / Vol. 82, No. 106 / Monday, June 5, 2017 / Rules and Regulations

                                             2015, M–17–11 (Dec. 16, 2016). Therein,                 for which an agency is required to first               I. Executive Order 13175, Consultation
                                             OMB notified agencies that the annual                   publish a proposed rule. See 5 U.S.C.                  and Coordination With Indian Tribal
                                             adjustment multiplier for 2017, based                   603(a) and 604(a). As discussed above,                 Governments
                                             on the CPI–U, is 1.01636 and that the                   the 2015 Act does not require agencies                    In accordance with Executive Order
                                             2017 annual adjustment amount is                        to first publish a proposed rule when                  13175, the MSPB has evaluated this rule
                                             obtained by multiplying the catch-up                    adjusting CMPs within their                            and determined that it has no tribal
                                             adjustment penalty amount by the 2017                   jurisdiction.                                          implications.
                                             annual adjustment multiplier, and                          Thus, the RFA does not apply to this
                                             rounding to the nearest dollar.                         final rule.                                            J. Paperwork Reduction Act
                                             Therefore, the new maximum penalty                                                                                This document does not contain
                                             under the CSRA and the Hatch Act is                     D. Small Business Regulatory
                                                                                                                                                            information collection requirements
                                             $1,028 × 1.01636 = $1,044.81, which                     Enforcement Fairness Act of 1996
                                                                                                                                                            subject to the Paperwork Reduction Act
                                             rounds to $1,045.                                          This rule is not a major rule under the             of 1995, Public Law 104–13 (44 U.S.C.
                                             III. Effective Date of Penalties                        Small Business Regulatory Enforcement                  Chapter 35).
                                                The revised CMP amounts will go into                 Fairness Act (5 U.S.C. 804(2)). This rule:             List of Subjects in 5 CFR Part 1201
                                             effect on June 5, 2017. All violations for                 (a) Does not have an annual effect on
                                                                                                     the economy of $100 million or more;                     Administrative practice and
                                             which CMPs are assessed after the                                                                              procedure, Civil rights, Government
                                             effective date of this rule will be                        (b) Will not cause a major increase in              employees.
                                             assessed at the adjusted penalty level                  costs or prices for consumers,
                                             regardless of whether the violation                                                                              For the reasons set forth above, 5 CFR
                                                                                                     individual industries, Federal, State, or
                                             occurred before the effective date.                                                                            part 1201 is amended as follows:
                                                                                                     local government agencies, or
                                             IV. Procedural Requirements                             geographic regions; and                                PART 1201—PRACTICES AND
                                                                                                        (c) Does not have significant adverse               PROCEDURES
                                             A. Administrative Procedures Act                        effects on competition, employment,
                                                Pursuant to 5 U.S.C. 553(b), the MSPB                investment, productivity, innovation, or               ■ 1. The authority citation for part 1201
                                             has determined that good cause exists                   the ability of United States-based                     continues to read as follows:
                                             for waiving the general notice of                       enterprises to compete with foreign-                     Authority: 5 U.S.C. 1204, 1305, and 7701,
                                             proposed rulemaking and public                          based enterprises.                                     and 38 U.S.C. 4331, unless otherwise noted.
                                             comment procedures as to these
                                                                                                     E. Unfunded Mandate Reform Act of                      § 1201.126   [Amended]
                                             technical amendments. The notice and
                                                                                                     1995
                                             comment procedures are being waived                                                                            ■  2. Section 1201.126 is amended in
                                             because Congress has specifically                         This rule does not involve a Federal                 paragraph (a) by removing ‘‘$1,000’’ and
                                             exempted agencies from these                            mandate that may result in the                         adding in its place ‘‘$1,045’’ and
                                             requirements when implementing the                      expenditure by State, local, or tribal                 removing ‘‘5 U.S.C. 1215(a)(3)’’ and in
                                             2015 Act. The 2015 Act requires                         governments, in the aggregate, or by the               its place adding ‘‘5 U.S.C. 1215(a)(3),
                                             agencies to adjust CMPs with an initial                 private sector, of $100 million or more                7326; 28 U.S.C. 2461 note’’.
                                             catch-up adjustment through an interim                  and that such rulemaking will not
                                             final rule, which does not require the                                                                         Jennifer Everling,
                                                                                                     significantly or uniquely affect small
                                             agency to complete a notice and                                                                                Acting Clerk of the Board.
                                                                                                     governments. Therefore, no actions were
                                             comment process prior to promulgating                   deemed necessary under the provisions                  [FR Doc. 2017–11541 Filed 6–2–17; 8:45 am]
                                             the interim final rule. The 2015 Act also               of the Unfunded Mandate Reform Act of                  BILLING CODE 7400–01–P
                                             explicitly requires the agency to make                  1995 (2 U.S.C. 1532).
                                             subsequent annual adjustments
                                             notwithstanding 5 U.S.C. 553, the                       F. Executive Order 12630, Government                   FEDERAL HOUSING FINANCE
                                             section of the Administrative Procedure                 Actions and Interference With                          AGENCY
                                             Act that normally requires agencies to                  Constitutionally Protected Property
                                             engage in notice and comment. It is also                Rights                                                 12 CFR Part 1263
                                             in the public interest that the adjusted                  This rule does not have takings                      RIN 2590–AA85
                                             rates for CMPs under the CSRA and the                   implications.
                                             Hatch Act become effective as soon as                                                                          Federal Home Loan Bank Membership
                                             possible to maintain their effective                    G. Executive Order 13132, Federalism                   for Non-Federally-Insured Credit
                                             deterrent effect.                                                                                              Unions
                                                                                                       This rule does not have federalism
                                             B. Regulatory Impact Analysis:                          implications. The rule does not have                   AGENCY:  Federal Housing Finance
                                             Executive Order 12866                                   substantial direct effects on the States,              Agency.
                                               The MSPB has determined that this is                  on the relationship between the national               ACTION: Final rule.
                                             not a significant regulatory action under               government and the States, or on the
                                             Executive Order 12866. Therefore, no                    distribution of power and                              SUMMARY:    The Federal Housing Finance
                                             regulatory impact analysis is required.                 responsibilities among the various                     Agency (FHFA or Agency) is adopting a
                                                                                                     levels of government.                                  final rule revising its regulation
                                             C. Regulatory Flexibility Act                                                                                  governing Federal Home Loan Bank
                                                                                                     H. Executive Order 12988, Civil Justice
                                               The Regulatory Flexibility Act (RFA)                                                                         (Bank) membership to implement
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                                                                                                     Reform
                                             requires an agency to prepare a                                                                                section 82001 of the Fixing America’s
                                             regulatory flexibility analysis for rules                  The MSPB has reviewed this rule in                  Surface Transportation Act (FAST Act),
                                             unless the agency certifies that the rule               light of Executive Order 12988 to                      which amended the Federal Home Loan
                                             will not have a significant economic                    eliminate ambiguity, minimize                          Bank Act (Bank Act) to authorize certain
                                             impact on a substantial number of small                 litigation, establish clear legal                      credit unions without Federal share
                                             entities. The RFA applies only to rules                 standards, and reduce burden.                          insurance to become Bank members.


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Document Created: 2018-11-14 10:00:23
Document Modified: 2018-11-14 10:00:23
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
ActionFinal rule.
DatesEffective Date: June 5, 2017.
ContactJennifer Everling, Acting Clerk of the Board, Merit Systems Protection Board, 1615 M Street NW., Washington, DC 20419; Phone: (202) 653-7200; Fax: (202) 653-7130; or email: [email protected]
FR Citation82 FR 25715 
CFR AssociatedAdministrative Practice and Procedure; Civil Rights and Government Employees

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