82 FR 29710 - Civil Monetary Penalty Inflation Adjustment

NATIONAL CREDIT UNION ADMINISTRATION

Federal Register Volume 82, Issue 125 (June 30, 2017)

Page Range		29710-29711
FR Document		2017-13643

On January 23, 2017, the NCUA Board (Board) published an interim final rule amending its regulations to adjust the maximum amount of each civil monetary penalty (CMP) within its jurisdiction to account for inflation. This action, including the amount of the adjustments, is required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. This rule finalizes those amendments.

Federal Register, Volume 82 Issue 125 (Friday, June 30, 2017)

[Federal Register Volume 82, Number 125 (Friday, June 30, 2017)]
[Rules and Regulations]
[Pages 29710-29711]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13643]


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

NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 747

RIN 3133-AE67


Civil Monetary Penalty Inflation Adjustment

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

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

SUMMARY: On January 23, 2017, the NCUA Board (Board) published an 
interim final rule amending its regulations to adjust the maximum 
amount of each civil monetary penalty (CMP) within its jurisdiction to 
account for inflation. This action, including the amount of the 
adjustments, is required under the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended by the Debt Collection Improvement 
Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015. This rule finalizes those amendments.

DATES: Effective June 30, 2017.

FOR FURTHER INFORMATION CONTACT: Ian Marenna, Senior Trial Attorney, at 
1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION:

I. Background
II. Regulatory Procedures

I. Background

    The Debt Collection Improvement Act of 1996 \1\ (DCIA) amended the 
Federal Civil Penalties Inflation Adjustment Act of 1990 \2\ (FCPIA 
Act) to require every federal agency to enact regulations that adjust 
each CMP provided by law under its jurisdiction by the rate of 
inflation at least once every four years. In November 2015, Congress 
further amended the CMP inflation requirements in the Bipartisan Budget 
Act of 2015,\3\ which contains the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (the 2015 amendments).\4\ This 
legislation provides for an initial ``catch-up'' adjustment of CMPs in 
2016, followed by annual inflation adjustments starting in 2017.
---------------------------------------------------------------------------

    \1\ Public Law 104-134, section 31001(s), 110 Stat. 1321-373 
(Apr. 26, 1996). The law is codified at 28 U.S.C. 2461 note.
    \2\ Public Law 101-410, 104 Stat. 890 (Oct. 5, 1990), also 
codified at 28 U.S.C. 2461 note.
    \3\ Public Law 114-74, 129 Stat. 584 (Nov. 2, 2015).
    \4\ 129 Stat. 599.
---------------------------------------------------------------------------

    On January 23, 2017, in compliance with the 2015 amendments, the 
Board published the annual inflation adjustments for 2017 in an interim 
final rule with a request for comments in the Federal Register.\5\ In 
calculating the adjustments, the Board reviewed and applied government-
wide guidance issued by the Office of Management and Budget (OMB).\6\ 
In accordance with the procedures and calculations prescribed by the 
2015 amendments and OMB's guidance, the Board adjusted the maximum 
level of each of the CMPs that NCUA has authority to assess. NCUA is 
not, however, required to assess at the new maximum levels and retains 
discretion to assess at lower levels, as it has done historically.\7\
---------------------------------------------------------------------------

    \5\ 82 FR 7637 (Jan. 23, 2017).
    \6\ Office of Management and Budget, Implementation of the 2017 
Annual Adjustment Pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, M-17-11 (Dec. 16, 2016).
    \7\ 82 FR 7637, 7639 (Jan. 23, 2017).
---------------------------------------------------------------------------

    The interim final rule became effective on January 23, 2017. The 
Board received no comments on the rule. Accordingly, this final rule 
confirms the adjustments made in the interim final rule without change.

II. Regulatory Procedures

    Section III of the Supplementary Information in the January 2017 
interim final rule sets forth the Board's analyses under the 
Administrative Procedure Act, the Regulatory Flexibility Act, the 
Paperwork Reduction Act of 1995, the Small Business Regulatory 
Enforcement Fairness Act (SBREFA), Executive Order 13132, and the 
Treasury and General Government Appropriations Act.\8\ Because the 
final rule confirms the interim final rule and does not alter the 
substance of the analyses and determinations accompanying the interim 
final rule, the Board continues to rely on those analyses and 
determinations for purposes of this rulemaking. The Board notes that 
OMB determined that the interim final rule is not a ``major rule'' 
within the meaning of SBREFA.
---------------------------------------------------------------------------

    \8\ See 82 FR 7640.


[[Page 29711]]


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

    By the National Credit Union Administration Board on June 23, 
2017.
Gerard Poliquin,
Secretary of the Board.

0
For the reasons stated above, the interim final rule amending 12 CFR 
part 747, published at 82 FR 7637 (Jan. 23, 2017) is adopted as a final 
rule without change.

[FR Doc. 2017-13643 Filed 6-29-17; 8:45 am]
 BILLING CODE 7535-01-P

29710 Federal Register / Vol. 82, No. 125 / Friday, June 30, 2017 / Rules and Regulations

performs such servicing activities in any purchaser of property from the Bipartisan Budget Act of 2015,3 which
accordance with the terms of the NCUA Board as conservator or contains the Federal Civil Penalties
applicable servicing agreements, with liquidating agent, other than to a Inflation Adjustment Act Improvements
respect to the financial assets included conservator or bridge credit union. Act of 2015 (the 2015 amendments).4
in securitizations that meet the (k) Repeal. This section may be This legislation provides for an initial
requirements applicable to that repealed by NCUA upon 30 days’ notice ‘‘catch-up’’ adjustment of CMPs in 2016,
securitization as set forth in paragraphs provided in the Federal Register, but followed by annual inflation
(b) and (c) of this section. any repeal does not apply to any adjustments starting in 2017.
(f) Notice for consent. Any party issuance made in accordance with this
requesting the NCUA Board’s consent as section before such repeal. On January 23, 2017, in compliance
conservator or liquidating agent under with the 2015 amendments, the Board
[FR Doc. 2017–13636 Filed 6–29–17; 8:45 am]
12 U.S.C. 1787(c)(13)(C) pursuant to published the annual inflation
BILLING CODE 7535–01–P
paragraph (d)(3)(i) of this section must adjustments for 2017 in an interim final
provide notice to the President, NCUA rule with a request for comments in the
Asset Management & Assistance Center, NATIONAL CREDIT UNION Federal Register.5 In calculating the
4807 Spicewood Springs Road, Suite ADMINISTRATION adjustments, the Board reviewed and
5100, Austin TX 78759–8490, and a applied government-wide guidance
statement of the basis upon which such 12 CFR Part 747 issued by the Office of Management and
request is made, and copies of all Budget (OMB).6 In accordance with the
RIN 3133–AE67
documentation supporting such request, procedures and calculations prescribed
including without limitation a copy of Civil Monetary Penalty Inflation by the 2015 amendments and OMB’s
the applicable agreements and of any Adjustment guidance, the Board adjusted the
applicable notices under the contract. maximum level of each of the CMPs that
(g) Contemporaneous requirement. AGENCY: National Credit Union NCUA has authority to assess. NCUA is
The NCUA Board as conservator or Administration (NCUA). not, however, required to assess at the
liquidating agent will not seek to avoid ACTION: Final rule. new maximum levels and retains
an otherwise legally enforceable discretion to assess at lower levels, as it
agreement that is executed by an SUMMARY: On January 23, 2017, the
NCUA Board (Board) published an has done historically.7
insured credit union in connection with
a securitization or in the form of a interim final rule amending its The interim final rule became
participation solely because the regulations to adjust the maximum effective on January 23, 2017. The Board
agreement does not meet the amount of each civil monetary penalty received no comments on the rule.
‘‘contemporaneous’’ requirement of 12 (CMP) within its jurisdiction to account Accordingly, this final rule confirms the
U.S.C. 1787(b)(9) and 1788(a)(3). for inflation. This action, including the adjustments made in the interim final
(h) Limitations. The consents set forth amount of the adjustments, is required rule without change.
in this section do not act to waive or under the Federal Civil Penalties
relinquish any rights granted to NCUA Inflation Adjustment Act of 1990, as II. Regulatory Procedures
in any capacity, including the NCUA amended by the Debt Collection
Section III of the Supplementary
Board as conservator or liquidating Improvement Act of 1996 and the
Information in the January 2017 interim
agent, pursuant to any other applicable Federal Civil Penalties Inflation
final rule sets forth the Board’s analyses
law or any agreement or contract except Adjustment Act Improvements Act of
2015. This rule finalizes those under the Administrative Procedure
as specifically set forth herein. Nothing
contained in this section alters the amendments. Act, the Regulatory Flexibility Act, the
claims priority of the securitized Paperwork Reduction Act of 1995, the
DATES: Effective June 30, 2017. Small Business Regulatory Enforcement
obligations.
FOR FURTHER INFORMATION CONTACT: Ian Fairness Act (SBREFA), Executive Order
(i) No waiver. This section does not
Marenna, Senior Trial Attorney, at 1775 13132, and the Treasury and General
authorize the attachment of any
Duke Street, Alexandria, VA 22314, or Government Appropriations Act.8
involuntary lien upon the property of
telephone: (703) 518–6540. Because the final rule confirms the
the NCUA Board as conservator or
liquidating agent. Nor does this section SUPPLEMENTARY INFORMATION: interim final rule and does not alter the
waive, limit, or otherwise affect the I. Background substance of the analyses and
rights or powers of NCUA in any II. Regulatory Procedures determinations accompanying the
capacity, including the NCUA Board as I. Background interim final rule, the Board continues
conservator or liquidating agent, to take to rely on those analyses and
any action or to exercise any power not The Debt Collection Improvement Act determinations for purposes of this
specifically mentioned, including but of 1996 1 (DCIA) amended the Federal rulemaking. The Board notes that OMB
not limited to any rights, powers or Civil Penalties Inflation Adjustment Act determined that the interim final rule is
remedies of the NCUA Board as of 1990 2 (FCPIA Act) to require every not a ‘‘major rule’’ within the meaning
conservator or liquidating agent federal agency to enact regulations that of SBREFA.
regarding transfers or other conveyances adjust each CMP provided by law under
taken in contemplation of the credit its jurisdiction by the rate of inflation at 3 Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015).
union’s insolvency or with the intent to least once every four years. In November 4 129 Stat. 599.
2015, Congress further amended the
mstockstill on DSK30JT082PROD with RULES

hinder, delay or defraud the credit 5 82 FR 7637 (Jan. 23, 2017).

union or the creditors of such credit CMP inflation requirements in the 6 Office of Management and Budget,

union, or that is a fraudulent transfer Implementation of the 2017 Annual Adjustment
1 Public Law 104–134, section 31001(s), 110 Stat. Pursuant to the Federal Civil Penalties Inflation
under applicable law. 1321–373 (Apr. 26, 1996). The law is codified at 28 Adjustment Act Improvements Act of 2015, M–17–
(j) No assignment. The right to U.S.C. 2461 note. 11 (Dec. 16, 2016).
consent under 12 U.S.C. 1787(c)(13)(C) 2 Public Law 101–410, 104 Stat. 890 (Oct. 5, 7 82 FR 7637, 7639 (Jan. 23, 2017).

may not be assigned or transferred to 1990), also codified at 28 U.S.C. 2461 note. 8 See 82 FR 7640.

VerDate Sep<11>2014 17:26 Jun 29, 2017 Jkt 241001 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 E:\FR\FM\30JNR1.SGM 30JNR1

Federal Register / Vol. 82, No. 125 / Friday, June 30, 2017 / Rules and Regulations 29711

By the National Credit Union effective on December 22, 2016. The III. Regulatory Procedures
Administration Board on June 23, 2017. NCUA accepted public comments,
Gerard Poliquin, A. Paperwork Reduction Act
however, until January 23, 2017.
Secretary of the Board.
The interim final rule revised In accordance with the requirements
■ For the reasons stated above, the procedures for the disclosure of records, of the Paperwork Reduction Act (PRA)
interim final rule amending 12 CFR part of 1995,4 the Board has reviewed the
including procedures for engaging in
747, published at 82 FR 7637 (Jan. 23, final rule and determined it does not
dispute resolution through the FOIA
2017) is adopted as a final rule without contain or modify a collection of
Public Liaison and the OGIS. The information subject to the PRA. The
change.
revisions were necessary to comply with PRA applies to rulemakings in which an
[FR Doc. 2017–13643 Filed 6–29–17; 8:45 am] amendments to the FOIA Improvement
BILLING CODE 7535–01–P
agency by rule creates a new paperwork
Act of 2016. NCUA is issuing this burden on regulated entities or increases
rulemaking to finalize the interim rule an existing burden. For purposes of the
NATIONAL CREDIT UNION with minor wording changes for PRA, a paperwork burden may take the
ADMINISTRATION consistency and clarification. form of a reporting or recordkeeping
II. Summary of Public Comments and requirement, both referred to as
12 CFR Part 792 Final Rule information collections. Information
RIN 3133–AD44
collected as part of an affidavit, oath,
NCUA received two comments on the affirmation, certification, receipt,
Revisions to the Freedom of interim final rule. One was from a trade changes of address, consent, or
Information Act Regulation organization and one was from an acknowledgment, however, is not
institute. One comment was fully considered an information collection for
AGENCY: National Credit Union purposes of the PRA.
Administration (NCUA). supportive of the Act, noting that the
interim rule met all the technical This category is limited to those
ACTION: Final rule. disclosures that require persons to
statutory requirements. The comment,
SUMMARY: The NCUA Board (Board) is however, also urged the NCUA to provide or display only facts necessary
finalizing its interim final rule exceed the requirements and continue to identify themselves. For example,
amending its Freedom of Information they entail no burden other than that
to adopt a presumption of openness.
Act (FOIA) regulation. The FOIA necessary to identify the respondent, the
NCUA’s longstanding FOIA practices
Improvement Act of 2016 amended the date, the respondent’s address, and the
include a presumption of openness
FOIA and required agencies to review nature of the instrument. ‘‘Nature of the
which will continue under the final instrument’’ refers to a respondent’s
their FOIA regulations and issue certain rule.
amendments by December 27, 2016. The request for materials, such as
amendments included revised In addition, the commenter believes publications or other information from
procedures for disclosing records under the NCUA should post every FOIA an agency. To facilitate such requests for
the FOIA, assessing fees, and notifying response to its Web site. The FOIA and information from an agency, an agency
requestors of options for resolving the interim final rule, in section may ask requesters to describe the
disputes through the NCUA FOIA 792.03(c), already provide that NCUA material or information sought in detail
Public Liaison and the Office of must post on its Web site records sufficient to describe the individual
Government Information Services released in response to a FOIA request desires.
(OGIS) within the National Archives that are either: Likely to be the subject The final rule implements the FOIA
and Records Administration. The of subsequent requests because of the Improvement Act of 2016 by amending
interim final rule became effective on nature of their subject matter; or records the agency’s FOIA regulations. Because
December 22, 2016. This rulemaking that have been requested three or more the only paperwork burden in this final
finalizes the interim rule with minor times. NCUA generally exceeds these rule relates to activities that are not
edits for consistency and clarification. requirements, posting on its FOIA page considered to be information
DATES: Effective June 30, 2017. records requested more than once and collections, NCUA has determined that
FOR FURTHER INFORMATION CONTACT: considering each record requested for this rule is exempt from the
Regina Metz, Senior Staff Attorney, or requirements of the PRA.
possible routine Web site posting. As
Linda Dent, Associate General Counsel, every record requested, however, is not B. Regulatory Flexibility Act
Administrative Law Section, Office of of interest to the general public, NCUA
General Counsel, at 1775 Duke Street, The Regulatory Flexibility Act
is adopting this section in the final rule requires NCUA to prepare an analysis to
Alexandria, Virginia 22314–3428, or without change.
telephone: (703) 518–6540. describe any significant economic
The other commenter requested that impact a rule may have on a substantial
SUPPLEMENTARY INFORMATION:
NCUA revise its definition of number of small credit unions (those
I. Background ‘‘representative of the news media’’ in under $100 million in assets). This final
On December 22, 2016, NCUA § 792.20 to be consistent with the FOIA rule does not impose any requirements
published an interim final rule 1 to at 5 U.S.C. 552(a)(4)(A)(ii) and also to on federally insured credit unions.
revise its FOIA regulation at part 792, consider additional technical matters. Therefore, it will not have a significant
subpart A of the agency’s regulations 2 As a change to this definition and the economic impact on a substantial
mstockstill on DSK30JT082PROD with RULES

in accordance with new requirements other issue raised were not included in number of small credit unions and a
under the FOIA Improvement Act of the interim final rule, NCUA will regulatory flexibility analysis is not
2016.3 The interim final rule became address this in an upcoming technical required. Because this final rule would
amendment rule. The final rule does affect few, if any, small entities, the
1 81FR 93792 (Dec 22, 2016). contain minor changes to wording for Board certifies that the final rule will
2 12CFR part 792.
3 Public Law 114–185, 130 Stat. 538.
consistency and clarification. 4 44 U.S.C. 3506; 5 CFR part 1320 Appendix A.1.

VerDate Sep<11>2014 17:26 Jun 29, 2017 Jkt 241001 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\30JNR1.SGM 30JNR1

Document Created: 2017-06-30 06:01:33
Document Modified: 2017-06-30 06:01:33

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 June 30, 2017.
Contact		Ian Marenna, Senior Trial Attorney, at 1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6540.
FR Citation		82 FR 29710
RIN Number		3133-AE67