82 FR 3601 - Civil Penalty Inflation Adjustments
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 82, Issue 8 (January 12, 2017)
Federal Register Volume 82, Issue 8 (January 12, 2017)
| Page Range | 3601-3603 | |
| FR Document | 2017-00521 |
[Federal Register Volume 82, Number 8 (Thursday, January 12, 2017)] [Rules and Regulations] [Pages 3601-3603] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00521] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. ======================================================================== Federal Register / Vol. 82, No. 8 / Thursday, January 12, 2017 / Rules and Regulations [[Page 3601]] BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1083 Civil Penalty Inflation Adjustments AGENCY: Bureau of Consumer Financial Protection. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is adjusting for inflation the maximum amount of each civil penalty within the Bureau's jurisdiction. These adjustments are required by the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act), as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The inflation adjustments mandated by the Inflation Adjustment Act serve to maintain the deterrent effect of civil penalties and to promote compliance with the law. DATES: This final rule is effective January 15, 2017. FOR FURTHER INFORMATION CONTACT: Jaclyn Maier, Counsel, Office of Regulations, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552, at (202) 435-7700. SUPPLEMENTARY INFORMATION: I. Background The Inflation Adjustment Act,\1\ as amended by the Debt Collection Improvement Act of 1996 \2\ and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,\3\ directs Federal agencies to adjust for inflation the civil penalty amounts within their jurisdiction not later than July 1, 2016, and then not later than January 15 every year thereafter.\4\ 28 U.S.C. 2461 note. Each agency was required to make the 2016 one-time catch-up adjustments through an interim final rule published in the Federal Register. On June 14, 2016, the Bureau published its interim final rule to make the initial catch-up adjustments to civil penalties within the Bureau's jurisdiction.\5\ The June 2016 interim final rule created a new part 1083 and in Sec. 1083.1 established the inflation-adjusted maximum amounts for each civil penalty within the Bureau's jurisdiction.\6\ The Inflation Adjustment Act also requires subsequent adjustments to be made annually, not later than January 15, and notwithstanding section 553 of the Administrative Procedure Act (APA).\7\ --------------------------------------------------------------------------- \1\ Public Law 101-410, 104 Stat. 890. \2\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321, 1321-373. \3\ Public Law 114-74, section 701, 129 Stat. 584, 599. \4\ Section 1301(a) of the Federal Reports Elimination Act of 1998, Public Law 105-362, 112 Stat. 3293, also amended the Inflation Adjustment Act by striking section 6, which contained annual reporting requirements, and redesignating section 7 as section 6, but did not alter the civil penalty adjustment requirements. \5\ 81 FR 38569 (June 14, 2016). Although the Bureau was not obligated to solicit comments for the interim final rule, the Bureau invited public comment and received none. \6\ See 12 CFR 1083.1. \7\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. --------------------------------------------------------------------------- Specifically, Federal agencies are directed to adjust annually each civil penalty provided by law within the jurisdiction of the agency by the ``cost-of-living adjustment.'' \8\ For annual adjustments after the initial catch up adjustments, the ``cost-of-living adjustment'' is defined as the percentage (if any) by which the Consumer Price Index for All Urban Consumers (CPI-U) for the month of October preceding the date of the adjustment, exceeds the CPI-U for October of the prior year.\9\ The Director of the Office of Management and Budget (OMB) is required to issue guidance (OMB Guidance) to agencies on implementing the annual civil penalty inflation adjustments by December 15, 2016, and December 15 every subsequent year.\10\ Pursuant to the Inflation Adjustment Act and OMB Guidance, agencies must apply the multiplier reflecting the ``cost-of-living adjustment'' to the current penalty amount and then round that amount to the nearest dollar to determine the annual adjustments.\11\ --------------------------------------------------------------------------- \8\ Inflation Adjustment Act sections 4 and 5, codified at 28 U.S.C. 2461 note. \9\ Inflation Adjustment Act sections 3 and 5, codified at 28 U.S.C. 2461 note. \10\ Memorandum from Shaun Donovan, Director, Office of Management and Budget, to the Heads of Executive Departments and Agencies (Dec. 16, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf. \11\ Inflation Adjustment Act section 5, codified at 28 U.S.C. 2461 note; Memorandum from Shaun Donovan, Director, Office of Management and Budget, to the Heads of Executive Departments and Agencies (Dec. 16, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf. --------------------------------------------------------------------------- For the 2017 annual adjustment, the multiplier reflecting the ``cost-of-living adjustment'' is 1.01636.\12\ Pursuant to the Inflation Adjustment Act and OMB Guidance, the Bureau multiplied each of its civil penalty amounts by the ``cost-of-living adjustment'' multiplier and rounded to the nearest dollar.\13\ --------------------------------------------------------------------------- \12\ Memorandum from Shaun Donovan, Director, Office of Management and Budget, to the Heads of Executive Departments and Agencies (Dec. 16, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf. The multiplier reflecting the ``cost-of-living adjustment'' that OMB provides is rounded to five decimal places. \13\ In rounding to the nearest dollar, the Bureau has rounded down where the digit immediately following the decimal point is less than 5 and has rounded up where the digit immediately following the decimal point is 5 or greater. --------------------------------------------------------------------------- The new penalty amounts that apply to civil penalties assessed after January 15, 2017 are as follows: ---------------------------------------------------------------------------------------------------------------- Penalty amounts established OMB ``Cost-of- Law Penalty description under June 2016 living New penalty interim final adjustment'' amount rule multiplier ---------------------------------------------------------------------------------------------------------------- Consumer Financial Protection Act, 12 Tier 1 penalty........... $5,437 1.01636 $5,526 U.S.C. 5565(c)(2)(A). Consumer Financial Protection Act, 12 Tier 2 penalty........... 27,186 1.01636 27,631 U.S.C. 5565(c)(2)(B). [[Page 3602]] Consumer Financial Protection Act, 12 Tier 3 penalty........... 1,087,450 1.01636 1,105,241 U.S.C. 5565(c)(2)(C). Interstate Land Sales Full Disclosure Per violation............ 1,894 1.01636 1,925 Act, 15 U.S.C. 1717a(a)(2). Interstate Land Sales Full Disclosure Annual cap............... 1,893,610 1.01636 1,924,589 Act, 15 U.S.C. 1717a(a)(2). Real Estate Settlement Procedures Act, Per failure.............. 89 1.01636 90 12 U.S.C. 2609(d)(1). Real Estate Settlement Procedures Act, Annual cap............... 178,156 1.01636 181,071 12 U.S.C. 2609(d)(1). Real Estate Settlement Procedures Act, Per failure, where 178 1.01636 181 12 U.S.C. 2609(d)(2)(A). intentional. SAFE Act, 12 U.S.C. 5113(d)(2)........ Per violation............ 27,455 1.01636 27,904 Truth in Lending Act, 15 U.S.C. First violation.......... 10,875 1.01636 11,053 1639e(k)(1). Truth in Lending Act, 15 U.S.C. Subsequent violations.... 21,749 1.01636 22,105 1639e(k)(2). ---------------------------------------------------------------------------------------------------------------- II. Legal Authority The Bureau issues this final rule under the Inflation Adjustment Act,\14\ as amended by the Debt Collection Improvement Act of 1996 \15\ and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,\16\ which requires the Bureau to adjust for inflation the civil penalties within its jurisdiction according to a statutorily prescribed formula. --------------------------------------------------------------------------- \14\ Public Law 101-410, 104 Stat. 890. \15\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321, 1321-373. \16\ Public Law 114-74, section 701, 129 Stat. 584, 599. --------------------------------------------------------------------------- III. Procedural Requirements A. Administrative Procedure Act Under the APA, notice and opportunity for public comment are not required if the Bureau finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest.\17\ Pursuant to this final rule, Sec. 1083.1 is amended to update the civil penalty amounts. The 2017 adjustments to the civil penalty amounts are technical and non-discretionary, and they merely apply the statutory method for adjusting civil penalty amounts. These adjustments are required by the Inflation Adjustment Act. Moreover, the Inflation Adjustment Act directs agencies to adjust the civil penalties annually notwithstanding section 553 of the APA,\18\ and OMB Guidance reaffirms that agencies need not complete a notice-and-comment process before making the annual adjustments for inflation.\19\ For these reasons, the Bureau has determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. Therefore, the amendment is adopted in final form. --------------------------------------------------------------------------- \17\ 5 U.S.C. 553(b)(B). \18\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. \19\ Memorandum from Shaun Donovan, Director, Office of Management and Budget, to the Heads of Executive Departments and Agencies (Dec. 16, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf. --------------------------------------------------------------------------- Section 553(d) of the APA generally requires publication of a final rule not less than 30 days before its effective date, except (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) as otherwise provided by the agency for good cause found and published with the rule.\20\ At a minimum, the Bureau believes the annual adjustments to the civil penalty amounts in Sec. 1083.1 fall under the third exception to section 553(d). The Bureau finds that there is good cause to make the amendments effective on January 15, 2017. The amendments to Sec. 1083.1 in this final rule are technical and non- discretionary, and they merely apply the statutory method for adjusting civil penalty amounts and follow the statutory directive to make annual adjustments by January 15 of each year. Moreover, the Inflation Adjustment Act directs agencies to adjust the civil penalties annually notwithstanding section 553 of the APA,\21\ and OMB Guidance reaffirms that agencies need not provide a delay in effective date for the annual adjustments for inflation.\22\ --------------------------------------------------------------------------- \20\ 5 U.S.C. 553(d). \21\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. \22\ Memorandum from Shaun Donovan, Director, Office of Management and Budget, to the Heads of Executive Departments and Agencies (Dec. 16, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf. --------------------------------------------------------------------------- B. Regulatory Flexibility Act Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis.\23\ --------------------------------------------------------------------------- \23\ 5 U.S.C. 603(a), 604(a). --------------------------------------------------------------------------- C. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995,\24\ the Bureau reviewed this final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the final rule. --------------------------------------------------------------------------- \24\ 44 U.S.C. 3506; 5 CFR 1320. --------------------------------------------------------------------------- List of Subjects in 12 CFR Part 1083 Administrative practice and procedure, Consumer protection, Penalties. Authority and Issuance 0 For the reasons set forth above, the Bureau amends 12 CFR part 1083, as set forth below: PART 1083--CIVIL PENALTY ADJUSTMENTS 0 1. The authority citation for part 1083 continues to read as follows: Authority: 12 U.S.C. 2609(d); 12 U.S.C. 5113(d)(2); 12 U.S.C. 5565(c); 15 U.S.C. 1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461 note. 0 2. Section 1083.1 is revised to read as follows: Sec. 1083.1 Adjustments of civil penalty amounts. (a) The maximum amount of each civil penalty within the jurisdiction of the Consumer Financial Protection Bureau to impose is adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, (28 U.S.C. 2461 note) as follows: [[Page 3603]] ------------------------------------------------------------------------ Adjusted U.S. Code citation Civil penalty maximum civil description penalty amount ------------------------------------------------------------------------ 12 U.S.C. 5565(c)(2)(A)........ Tier 1 penalty........ $5,526 12 U.S.C. 5565(c)(2)(B)........ Tier 2 penalty........ 27,631 12 U.S.C. 5565(c)(2)(C)........ Tier 3 penalty........ 1,105,241 15 U.S.C. 1717a(a)(2).......... Per violation......... 1,925 15 U.S.C. 1717a(a)(2).......... Annual cap............ 1,924,589 12 U.S.C. 2609(d)(1)........... Per failure........... 90 12 U.S.C. 2609(d)(1)........... Annual cap............ 181,071 12 U.S.C. 2609(d)(2)(A)........ Per failure, where 181 intentional. 12 U.S.C. 5113(d)(2)........... Per violation......... 27,904 15 U.S.C. 1639e(k)(1).......... First violation....... 11,053 15 U.S.C. 1639e(k)(2).......... Subsequent violations. 22,105 ------------------------------------------------------------------------ (b) The adjustments in paragraph (a) of this section shall apply to civil penalties assessed after January 15, 2017, regardless of when the violation for which the penalty is assessed occurred. Dated: January 4, 2017. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2017-00521 Filed 1-9-17; 4:15 pm] BILLING CODE 4810-AM-P
![Federal Register / Vol. 82, No. 8 / Thursday, January 12, 2017 / Rules and Regulations 3603
Adjusted
U.S. Code citation Civil penalty description maximum civil
penalty amount
12 U.S.C. 5565(c)(2)(A) ............................................................. Tier 1 penalty ............................................................................ $5,526
12 U.S.C. 5565(c)(2)(B) ............................................................. Tier 2 penalty ............................................................................ 27,631
12 U.S.C. 5565(c)(2)(C) ............................................................. Tier 3 penalty ............................................................................ 1,105,241
15 U.S.C. 1717a(a)(2) ............................................................... Per violation .............................................................................. 1,925
15 U.S.C. 1717a(a)(2) ............................................................... Annual cap ................................................................................ 1,924,589
12 U.S.C. 2609(d)(1) ................................................................. Per failure .................................................................................. 90
12 U.S.C. 2609(d)(1) ................................................................. Annual cap ................................................................................ 181,071
12 U.S.C. 2609(d)(2)(A) ............................................................. Per failure, where intentional .................................................... 181
12 U.S.C. 5113(d)(2) ................................................................. Per violation .............................................................................. 27,904
15 U.S.C. 1639e(k)(1) ................................................................ First violation ............................................................................. 11,053
15 U.S.C. 1639e(k)(2) ................................................................ Subsequent violations ............................................................... 22,105
(b) The adjustments in paragraph (a) and ODP is specified in the amendatory SUPPLEMENTARY INFORMATION: This rule
of this section shall apply to civil provisions. amends Title 14 of the Code of Federal
penalties assessed after January 15, The incorporation by reference of Regulations, Part 97 (14 CFR part 97), by
2017, regardless of when the violation certain publications listed in the establishing, amending, suspending, or
for which the penalty is assessed regulations is approved by the Director removes SIAPS, Takeoff Minimums
occurred. of the Federal Register as of January 12, and/or ODPS. The complete regulatory
Dated: January 4, 2017. 2017. description of each SIAP and its
Richard Cordray, ADDRESSES: Availability of matters associated Takeoff Minimums or ODP
Director, Bureau of Consumer Financial incorporated by reference in the for an identified airport is listed on FAA
Protection. amendment is as follows: form documents which are incorporated
[FR Doc. 2017–00521 Filed 1–9–17; 4:15 pm] For Examination by reference in this amendment under 5
BILLING CODE 4810–AM–P U.S.C. 552(a), 1 CFR part 51, and 14
1. U.S. Department of Transportation, CFR part § 97.20. The applicable FAA
Docket Ops-M30, 1200 New Jersey forms are FAA Forms 8260–3, 8260–4,
Avenue SE., West Bldg., Ground Floor, 8260–5, 8260–15A, and 8260–15B when
DEPARTMENT OF TRANSPORTATION
Washington, DC 20590–0001. required by an entry on 8260–15A.
Federal Aviation Administration 2. The FAA Air Traffic Organization
Service Area in which the affected The large number of SIAPs, Takeoff
airport is located; Minimums and ODPs, their complex
14 CFR Part 97
3. The office of Aeronautical nature, and the need for a special format
[Docket No. 31112; Amdt. No. 3727] Navigation Products, 6500 South make publication in the Federal
MacArthur Blvd., Oklahoma City, OK Register expensive and impractical.
Standard Instrument Approach Further, airmen do not use the
73169 or,
Procedures, and Takeoff Minimums regulatory text of the SIAPs, Takeoff
4. The National Archives and Records
and Obstacle Departure Procedures; Minimums or ODPs, but instead refer to
Administration (NARA). For
Miscellaneous Amendments their graphic depiction on charts
information on the availability of this
AGENCY: Federal Aviation material at NARA, call 202–741–6030, printed by publishers of aeronautical
Administration (FAA), DOT. or go to: http://www.archives.gov/ materials. Thus, the advantages of
ACTION: Final rule. federal_register/code_of_federal_ incorporation by reference are realized
regulations/ibr_locations.html. and publication of the complete
SUMMARY: This rule establishes, amends, description of each SIAP, Takeoff
Availability
suspends, or removes Standard Minimums and ODP listed on FAA form
Instrument Approach Procedures All SIAPs and Takeoff Minimums and documents is unnecessary. This
(SIAPs) and associated Takeoff ODPs are available online free of charge. amendment provides the affected CFR
Minimums and Obstacle Departure Visit the National Flight Data Center at sections and specifies the types of
Procedures (ODPs) for operations at nfdc.faa.gov to register. Additionally, SIAPs, Takeoff Minimums and ODPs
certain airports. These regulatory individual SIAP and Takeoff Minimums with their applicable effective dates.
actions are needed because of the and ODP copies may be obtained from This amendment also identifies the
adoption of new or revised criteria, or the FAA Air Traffic Organization airport and its location, the procedure,
because of changes occurring in the Service Area in which the affected and the amendment number.
National Airspace System, such as the airport is located.
commissioning of new navigational FOR FURTHER INFORMATION CONTACT: Availability and Summary of Material
facilities, adding new obstacles, or Thomas J. Nichols, Flight Procedure Incorporated by Reference
changing air traffic requirements. These Standards Branch (AFS–420), Flight
changes are designed to provide safe The material incorporated by
Technologies and Programs Divisions,
reference is publicly available as listed
mstockstill on DSK3G9T082PROD with RULES
and efficient use of the navigable Flight Standards Service, Federal
airspace and to promote safe flight Aviation Administration, Mike in the ADDRESSES section.
operations under instrument flight rules Monroney Aeronautical Center, 6500 The material incorporated by
at the affected airports. South MacArthur Blvd., Oklahoma City, reference describes SIAPS, Takeoff
DATES: This rule is effective January 12, OK 73169 (Mail Address: P.O. Box Minimums and/or ODPS as identified in
2017. The compliance date for each 25082, Oklahoma City, OK 73125) the amendatory language for part 97 of
SIAP, associated Takeoff Minimums, Telephone: (405) 954–4164. this final rule.
VerDate Sep<11>2014 17:27 Jan 11, 2017 Jkt 241001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\12JAR1.SGM 12JAR1](https://thefederalregister.org/doc/82_FR_3609/page/3.svg)
Document Created: 2017-03-21 14:40:54
Document Modified: 2017-03-21 14:40:54
| 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 | This final rule is effective January 15, 2017. | |
| Contact | Jaclyn Maier, Counsel, Office of Regulations, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552, at (202) 435-7700. | |
| FR Citation | 82 FR 3601 | |
| CFR Associated | Administrative Practice and Procedure; Consumer Protection and Penalties |
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