82 FR 7637 - Civil Monetary Penalty Inflation Adjustment
NATIONAL CREDIT UNION ADMINISTRATION Federal Register Volume 82, Issue 13 (January 23, 2017)
Federal Register Volume 82, Issue 13 (January 23, 2017)
| Page Range | 7637-7641 | |
| FR Document | 2017-00473 |
[Federal Register Volume 82, Number 13 (Monday, January 23, 2017)] [Rules and Regulations] [Pages 7637-7641] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00473] ----------------------------------------------------------------------- NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Part 747 RIN 3133-AE67 Civil Monetary Penalty Inflation Adjustment AGENCY: National Credit Union Administration (NCUA). ACTION: Interim final rule. ----------------------------------------------------------------------- SUMMARY: The NCUA Board (Board) is amending its regulations to adjust the maximum amount of each civil monetary penalty (CMP) within its [[Page 7638]] 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. DATES: This interim final rule is effective January 23, 2017. Comments must be received on or before February 22, 2017. ADDRESSES: You may submit comments by any of the following methods (Please send comments by one method only):Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. NCUA Web site: https://www.ncua.gov/regulation-supervision/Pages/rules/proposed.aspx. Follow the instructions for submitting comments. Email: Address to [email protected]. Include ``[Your name] Comments on ``Civil Monetary Penalty Inflation Adjustment'' in the email subject line. Fax: (703) 518-6319. Use the subject line described above for email. Mail: Address to Gerard Poliquin, Secretary of the Board, National Credit Union Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428. Hand Delivery/Courier: Same as mail address. Public Inspection: All public comments are available on the agency's Web site at http://www.ncua.gov/RegulationsOpinionsLaws/comments as submitted, except as may not be possible for technical reasons. Public comments will not be edited to remove any identifying or contact information. Paper copies of comments may be inspected in NCUA's law library at 1775 Duke Street, Alexandria, Virginia 22314, by appointment weekdays between 9:00 a.m. and 3:00 p.m. To make an appointment, call (703) 518-6546 or send an email to [email protected]. FOR FURTHER INFORMATION CONTACT: Ian Marenna, Senior Trial Attorney, at 1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6540. SUPPLEMENTARY INFORMATION: I. Legal Background II. Calculation of Adjustments III. Regulatory Procedures I. Legal Background A. Statutory Requirements and OMB Guidance 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. --------------------------------------------------------------------------- \1\ Public Law 104-134, Sec. 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), codified at 28 U.S.C. 2461 note. --------------------------------------------------------------------------- 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 provided for an initial ``catch-up'' adjustment of CMPs in 2016, followed by annual adjustments. The catch-up adjustment re-set CMP maximum amounts by setting aside the inflation adjustments that agencies made in prior years and instead calculated inflation with reference to the year when each CMP was enacted or last modified by Congress. Agencies were required to publish their catch-up adjustments in an interim final rule by July 1, 2016 and make them effective by August 1, 2016.\5\ NCUA complied with these requirements in a June 2016 interim final rule, followed by an October 2016 final rule to confirm the adjustments as final.\6\ --------------------------------------------------------------------------- \3\ Public Law 114-74, 129 Stat. 584 (Nov. 2, 2015). \4\ 129 Stat. 599. \5\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 2, 2015). \6\ 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov. 7, 2016). --------------------------------------------------------------------------- The 2015 amendments also specified how agencies must conduct annual inflation adjustments after the 2016 catch-up adjustment. Beginning in 2017, agencies must make the required adjustments and publish them in the Federal Register by January 15 of each succeeding year.\7\ The statute provides that the adjustments shall be made notwithstanding the section of the Administrative Procedure Act (APA) that requires prior notice and public comment for agency rulemaking.\8\ The 2015 amendments also specify that each CMP maximum must be increased by the percentage by which the consumer price index for urban consumers (CPI-U) \9\ for October of the year immediately preceding the year the adjustment is made exceeds the CPI-U for October of the prior year.\10\ For example, for the adjustment made in 2017, agencies must compare the October 2016 CPI-U with the October 2015 CPI-U. --------------------------------------------------------------------------- \7\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 2, 2015). \8\ Id. \9\ This index is published by the Department of Labor, Bureau of Labor Statistics, and is available at its Web site: http://www.bls.gov/cpi/. \10\ Public Law 114-74, Sec. 701(b)(1)(2)(B), 129 Stat. 584, 600 (Nov. 2, 2015). --------------------------------------------------------------------------- The 2015 amendments also provide that agencies may forgo the required annual adjustments in certain circumstances. Specifically, in a subsection titled ``Other Adjustments Made,'' the statute provides that an agency is not required to make an annual adjustment to a CMP if it has been increased by a greater amount than the contemplated annual adjustment in the preceding 12 months.\11\ When these criteria are met, the agency has discretion not to make the adjustments otherwise required by the statute. --------------------------------------------------------------------------- \11\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 600 (Nov. 2, 2015). --------------------------------------------------------------------------- In addition, the 2015 amendments directed the Office of Management and Budget (OMB) to issue guidance to agencies on implementing the inflation adjustments.\12\ OMB is required to issue its guidance each December and did so on December 16, 2016.\13\ This OMB guidance for the upcoming 2017 adjustments includes an inflationary multiplier (1.01636) to apply to each current CMP maximum amount to determine the adjusted maximum. The guidance also addresses the exception described above for adjustments made in the preceding 12 months, indicating that the exception applies to adjustments made due to a law other than the 2015 amendments.\14\ Finally, the guidance addresses rulemaking procedures and agency reporting and oversight requirements. --------------------------------------------------------------------------- \12\ Public Law 114-74, Sec. 701(b)(4), 129 Stat. 584, 601 (Nov. 2, 2015). \13\ Id.; OMB, 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), available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf (noting that the applicable 2017 CMP-adjustment multiplier is 1.01636). \14\ Id. at 3. --------------------------------------------------------------------------- The next section sets forth the Board's calculation of the adjustments for 2017, in accordance with the foregoing requirements. B. Application to the 2017 Adjustments This section applies the statutory requirements and OMB's guidance to NCUA CMPs. As explained above, the 2015 amendments require NCUA to adjust the [[Page 7639]] maximum amounts of its CMPs by the percentage by which the October 2016 CPI-U (241.729) exceeds the October 2015 CPI-U (237.838). This percentage is 1.636. This percentage increase can be expressed as an inflation multiplier (the quotient of the October 2016 figure divided by the October 2015 figure). Accordingly, each CMP maximum amount should be multiplied by 1.01636 to determine the adjusted maximum amount. OMB's guidance identifies the same multiplier. The Board has considered the exception in the 2015 amendments for adjustments made in the preceding 12 months, discussed above, but has decided not to invoke it. The OMB guidance indicates that this exception applies when the adjustments in the preceding 12 months were made under authority other than the 2015 amendments. The Board finds this reading of the statute reasonable. Even if this exception did apply as a threshold matter, there would be good reasons not to apply it. First, the adjustments calculated below are relatively minor, as the maximums will increase by about 1.6 percent. Second, NCUA is not required to and historically has not assessed CMPs at the maximum levels. Third, if NCUA chose to forgo the increases this year, it would not be able to capture this inflation in later years, which would cause the maximums to fall out of line with annual inflation. Finally, the Board anticipates that the federal banking agencies will not apply this exception to CMPs for which NCUA and the banking agencies have concurrent jurisdiction. Although NCUA is not required to make its adjustments in accord with any other agency, maintaining consistency in this area is desirable. In sum, even if the exception might apply, the Board would not invoke it this year. The table below presents the adjustment calculations. The current maximums are found at 12 CFR 747.1001, as adjusted in June 2016. This amount is multiplied by the inflation multiplier to calculate the new maximum in the far right column. Only these adjusted maximum amounts, and not the calculations, will be codified at 12 CFR 747.1001 under this interim final rule. The adjusted amounts will be effective January 15, 2017, and can be applied to violations that occurred on or after November 2, 2015, the date the 2015 amendments were enacted. --------------------------------------------------------------------------- \15\ The table uses condensed descriptions of CMP tiers. Refer to the U.S. Code citations for complete descriptions. Table--Calculation of Maximum CMP Adjustments ---------------------------------------------------------------------------------------------------------------- Adjusted maximum ($) Citation Description/tier Current maximum ($) Multiplier (Current maximum x \15\ multiplier) ---------------------------------------------------------------------------------------------------------------- 12 U.S.C. 1782(a)(3)......... Inadvertent 3,787.................... 1.01636 3,849. failure to submit a report or the inadvertent submission of a false or misleading report. 12 U.S.C. 1782(a)(3)......... Non-inadvertent 37,872................... 1.01636 38,492. failure to submit a report or the non- inadvertent submission of a false or misleading report. 12 U.S.C. 1782(a)(3)......... Failure to Lesser of 1,893,610 or 1% 1.01636 Lesser of 1,924,589 or submit a report of total CU assets. 1% of total CU assets. or the submission of a false or misleading report done knowingly or with reckless disregard. 12 U.S.C. 1782(d)(2)(A)...... Tier 1 CMP for 3,462.................... 1.01636 3,519. inadvertent failure to submit certified statement of insured shares and charges due to NCUSIF, or inadvertent submission of false or misleading statement. 12 U.S.C. 1782(d)(2)(B)...... Tier 2 CMP for 34,620................... 1.01636 35,186. non-inadvertent failure to submit certified statement or submission of false or misleading statement. 12 U.S.C. 1782(d)(2)(C)...... Tier 3 CMP for Lesser of 1,730,990 or 1% 1.01636 Lesser of 1,759,309 or failure to of total CU assets. 1% of total CU assets. submit a certified statement or the submission of a false or misleading statement done knowingly or with reckless disregard. 12 U.S.C. 1785(a)(3)......... Non-compliance 118...................... 1.01636 120. with insurance logo requirements. 12 U.S.C. 1785(e)(3)......... Non-compliance 275...................... 1.01636 279. with NCUA security requirements. 12 U.S.C. 1786(k)(2)(A)...... Tier 1 CMP for 9,468.................... 1.01636 9,623. violations of law, regulation, and other orders or agreements. 12 U.S.C. 1786(k)(2)(B)...... Tier 2 CMP for 47,340................... 1.01636 48,114. violations of law, regulation, and other orders or agreements and for recklessly engaging in unsafe or unsound practices or breaches of fiduciary duty. 12 U.S.C. 1786(k)(2)(C)...... Tier 3 CMP for 1,893,610................ 1.01636 1,924,589. knowingly committing the violations under Tier 1 or 2 (natural person). 12 U.S.C. 1786(k)(2)(C)...... Tier 3 (same) Lesser of 1,893,610 or 1% 1.01636 Lesser of 1,924,589 or (CU). of total CU assets. 1% of total CU assets. 12 U.S.C. 1786(w)(5)(A)(ii).. Non-compliance 311,470.................. 1.01636 316,566. with senior examiner post- employment restrictions. 15 U.S.C. 1639e(k)........... Non-compliance 10,875................... 1.01636 11,053. with appraisal independence standards (first violation). 15 U.S.C. 1639e(k)........... Subsequent 21,749................... 1.01636 22,105. violations of the same. 42 U.S.C. 4012a(f)(5)........ Non-compliance 2,056.................... 1.01636 2,090. with flood insurance requirements. ---------------------------------------------------------------------------------------------------------------- [[Page 7640]] III. Regulatory Procedures A. Interim Final Rule Under the APA In the 2015 amendments to the FCPIA Act, Congress provided that agencies shall make the required inflation adjustments in 2017 and subsequent years notwithstanding 5 U.S.C. 553,\16\ which requires agencies to follow notice-and-comment procedures in rulemaking and to make rules effective no sooner than 30 days after publication in the Federal Register. The 2015 amendments provide a clear exception to these requirements.\17\ In addition, the Board finds that notice-and- comment procedures would be impracticable and unnecessary under the APA because of the largely ministerial and technical nature of the rule, which affords agencies limited discretion in promulgating the rule, and the statutory deadline for making the adjustments.\18\ In these circumstances, the Board finds good cause to issue an interim final rule without issuing a notice of proposed rulemaking. The Board also finds good cause to make the interim final rule effective upon publication because of the statutory deadline. Accordingly, this interim final rule is issued without prior notice and will become effective immediately upon publication. However, the Board invites comments on all aspects of the interim final rule. The Board will review and consider all comments before issuing a final rule. --------------------------------------------------------------------------- \16\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 2, 2015). \17\ See 5 U.S.C. 559; Asiana Airlines v. Fed. Aviation Admin., 134 F.3d 393, 396-99 (D.C. Cir. 1998). \18\ 5 U.S.C. 553(b)(3)(B); see Mid-Tex Elec. Co-op., Inc. v. Fed. Energy Regulatory Comm'n, 822 F.2d 1123, 1133-34 (D.C. Cir. 1987). --------------------------------------------------------------------------- B. Regulatory Flexibility Act The Regulatory Flexibility Act requires the Board to prepare an analysis to describe any significant economic impact a regulation may have on a substantial number of small entities.\19\ For purposes of this analysis, the Board considers small credit unions to be those having under $100 million in assets.\20\ This interim final rule will not have a significant economic impact on a substantial number of small credit unions because it only affects the maximum amounts of CMPs that may be assessed in individual cases, which are not numerous and generally do not involve assessments at the maximum level. In addition, several of the CMPs are limited to a percentage of a credit union's assets. Finally, in assessing CMPs, the Board generally must consider a party's financial resources.\21\ Because this interim final rule will affect few, if any, small credit unions, the Board certifies that the final rule will not have a significant economic impact on small entities. --------------------------------------------------------------------------- \19\ 5 U.S.C. 603(a). \20\ Interpretive Ruling and Policy Statement 15-1, 80 FR 57512 (Sept. 24, 2015). \21\ 12 U.S.C. 1786(k)(2)(G)(i). --------------------------------------------------------------------------- C. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in which an agency creates a new paperwork burden on regulated entities or modifies an existing burden.\22\ For purposes of the PRA, a paperwork burden may take the form of either a reporting or a recordkeeping requirement, both referred to as information collections. This interim final rule adjusts the maximum amounts of certain CMPs that the Board may assess against individuals, entities, or credit unions but does not require any reporting or recordkeeping. Therefore, this interim final rule will not create new paperwork burdens or modify any existing paperwork burdens. --------------------------------------------------------------------------- \22\ 44 U.S.C. 3507(d); 5 CFR part 1320. --------------------------------------------------------------------------- D. Executive Order 13132 Executive Order 13132 encourages independent regulatory agencies to consider the impact of their actions on state and local interests. In adherence to fundamental federalism principles, NCUA, an independent regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies with the executive order. This interim final rule adjusts the maximum amounts of certain CMPs that the Board may assess against individuals, entities, and federally insured credit unions, including state- chartered credit unions. However, the interim final rule does not create any new authority or alter the underlying statutory authorities that enable the Board to assess CMPs. Accordingly, this interim final rule will not have a substantial direct effect on the states, on the connection between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. The Board has determined that this interim final rule does not constitute a policy that has federalism implications for purposes of the executive order. E. Assessment of Federal Regulations and Policies on Families The Board has determined that this interim final rule will not affect family well-being within the meaning of Section 654 of the Treasury and General Government Appropriations Act, 1999.\23\ --------------------------------------------------------------------------- \23\ Public Law 105-277, 112 Stat. 2681 (Oct. 21, 1998). --------------------------------------------------------------------------- F. Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act of 1996 \24\ (SBREFA) provides generally for congressional review of agency rules. A reporting requirement is triggered in instances where the Board issues a final rule as defined by Section 551 of the APA.\25\ The Board has submitted this interim final rule to OMB for it to determine whether it is a ``major rule'' within the meaning of the relevant sections of SBREFA. --------------------------------------------------------------------------- \24\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996). \25\ 5 U.S.C. 551. --------------------------------------------------------------------------- List of Subjects in 12 CFR Part 747 Civil monetary penalties, Credit unions. By the National Credit Union Administration Board on January 6, 2017. Gerard S. Poliquin, Secretary of the Board. For the reasons stated above, the NCUA Board amends 12 CFR part 747 as follows: PART 747--ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF PRACTICE AND PROCEDURE, AND INVESTIGATIONS 0 1. The authority citation for part 747 continues to read as follows: Authority: 12 U.S.C. 1766, 1782, 1784, 1785, 1786, 1787, 1790a, 1790d; 15 U.S.C. 1639e; 42 U.S.C. 4012a; Pub. L. 101-410; Pub. L. 104-134; Pub. L. 109-351; Pub. L. 114-74. Subpart K--Inflation Adjustment of Civil Monetary Penalties 0 2. Revise Sec. 747.1001 to read as follows: Sec. 747.1001 Adjustment of civil monetary penalties by the rate of inflation. (a) NCUA is required by the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note)) to adjust the maximum amount of each civil monetary penalty within its jurisdiction by the rate of inflation. The following chart displays those adjusted amounts, as calculated pursuant to the statute: [[Page 7641]] ---------------------------------------------------------------------------------------------------------------- U.S. Code citation CMP description New maximum amount ---------------------------------------------------------------------------------------------------------------- (1) 12 U.S.C. 1782(a)(3).......................... Inadvertent failure to submit $3,849. a report or the inadvertent submission of a false or misleading report. (2) 12 U.S.C. 1782(a)(3).......................... Non-inadvertent failure to $38,492. submit a report or the non- inadvertent submission of a false or misleading report. (3) 12 U.S.C. 1782(a)(3).......................... Failure to submit a report or $1,924,589 or 1 percent of the submission of a false or the total assets of the misleading report done credit union, whichever is knowingly or with reckless less. disregard. (4) 12 U.S.C. 1782(d)(2)(A)....................... Tier 1 CMP for inadvertent $3,519. failure to submit certified statement of insured shares and charges due to NCUSIF, or inadvertent submission of false or misleading statement. (5) 12 U.S.C. 1782(d)(2)(B)....................... Tier 2 CMP for non- $35,186. inadvertent failure to submit certified statement or submission of false or misleading statement. (6) 12 U.S.C. 1782(d)(2)(C)....................... Tier 3 CMP for failure to $1,759,309 or 1 percent of submit a certified statement the total assets of the or the submission of a false credit union, whichever is or misleading statement done less. knowingly or with reckless disregard. (7) 12 U.S.C. 1785(a)(3).......................... Non-compliance with insurance $120. logo requirements. (8) 12 U.S.C. 1785(e) (3)......................... Non-compliance with NCUA $279. security requirements. (9) 12 U.S.C. 1786(k)(2)(A)....................... Tier 1 CMP for violations of $9,623. law, regulation, and other orders or agreements. (10) 12 U.S.C. 1786(k)(2)(A)...................... Tier 2 CMP for violations of $48,114. law, regulation, and other orders or agreements and for recklessly engaging in unsafe or unsound practices or breaches of fiduciary duty. (11) 12 U.S.C. 1786(k)(2)(A)...................... Tier 3 CMP for knowingly For a person other than an committing the violations insured credit union: under Tier 1 or 2 (natural $1,924,589; For an insured person). credit union: $1,924,589 or 1 percent of the total assets of the credit union, whichever is less. (12) 12 U.S.C. 1786(w)(5)(ii)..................... Non-compliance with senior $316,566. examiner post-employment restrictions. (13) 15 U.S.C. 1639e(k)........................... Non-compliance with appraisal First violation: $11,053. independence requirements. Subsequent violations: $22,105. (14) 42 U.S.C. 4012a(f)(5)........................ Non-compliance with flood $2,090. insurance requirements. ---------------------------------------------------------------------------------------------------------------- (b) The adjusted amounts displayed in paragraph (a) of this section apply to civil monetary penalties that are assessed after the date the increase takes effect, including those whose associated violation or violations pre-dated the increase and occurred after November 2, 2015. [FR Doc. 2017-00473 Filed 1-19-17; 8:45 am] BILLING CODE 7535-01-P
![Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Rules and Regulations 7637
the IORR and IOER was associated with made pursuant to congressionally final regulatory flexibility analysis do
an increase in the target range for the delegated authority): (1) Publication not apply.
federal funds rate, from a target range of with adequate notice of a proposed rule;
1⁄4 to 1⁄2 percent to a target range of 1⁄2 V. Paperwork Reduction Act
(2) followed by a meaningful
to 3⁄4 percent, announced by the FOMC opportunity for the public to comment In accordance with the Paperwork
on December 14, 2016 with an effective on the rule’s content; and (3) Reduction Act (‘‘PRA’’) of 1995 (44
date of December 15, 2016. The FOMC’s publication of the final rule not less U.S.C. 3506; 5 CFR part 1320 Appendix
press release on the same day as the than 30 days before its effective date. A.1), the Board reviewed the final rule
announcement noted that: The APA provides that notice and under the authority delegated to the
Information received since the Federal comment procedures do not apply if the Board by the Office of Management and
Open Market Committee met in November agency for good cause finds them to be Budget. The final rule contains no
indicates that the labor market has continued ‘‘unnecessary, impracticable, or contrary requirements subject to the PRA.
to strengthen and that economic activity has to the public interest.’’ 12 U.S.C. List of Subjects in 12 CFR Part 204
been expanding at a moderate pace since 553(b)(3)(A). Section 553(d) of the APA
mid-year. Job gains have been solid in recent also provides that publication not less Banks, banking, Reporting and
months and the unemployment rate has recordkeeping requirements.
declined. Household spending has been than 30 days prior to a rule’s effective
date is not required for (1) a substantive For the reasons set forth in the
rising moderately but business fixed
investment has remained soft. Inflation has rule which grants or recognizes an preamble, the Board amends 12 CFR
increased since earlier this year but is still exemption or relieves a restriction; (2) part 204 as follows:
below the Committee’s 2 percent longer-run interpretive rules and statements of
objective, partly reflecting earlier declines in policy; or (3) an agency finding good PART 204—RESERVE
energy prices and in prices of non-energy REQUIREMENTS OF DEPOSITORY
cause for shortened notice and
imports. Market-based measures of inflation INSTITUTIONS (REGULATION D)
compensation have moved up considerably
publishing its reasoning with the rule.
but still are low; most survey-based measures 12 U.S.C. 553(d). ■ 1. The authority citation for part 204
of longer-term inflation expectations are little The Board has determined that good continues to read as follows:
changed, on balance, in recent months. cause exists for finding that the notice,
Consistent with its statutory mandate, the Authority: 12 U.S.C. 248(a), 248(c), 371a,
public comment, and delayed effective 461, 601, 611, and 3105.
Committee seeks to foster maximum
date provisions of the APA are
employment and price stability. The ■ 2. Section 204.10 is amended by
Committee expects that, with gradual unnecessary, impracticable, or contrary
revising paragraph (b)(5) to read as
adjustments in the stance of monetary policy, to the public interest with respect to the
follows:
economic activity will expand at a moderate final amendments to Regulation D. The
pace and labor market conditions will rate increases for IORR and IOER that § 204.10 Payment of interest on balances.
strengthen somewhat further. Inflation is are reflected in the final amendments to * * * * *
expected to rise to 2 percent over the Regulation D were made with a view
medium term as the transitory effects of past
(b) * * *
towards accommodating commerce and (5) The rates for IORR and IOER are:
declines in energy and import prices
business and with regard to their
dissipate and the labor market strengthens
further. Near-term risks to the economic bearing upon the general credit situation Rate
outlook appear roughly balanced. The of the country. Notice and public (percent)
Committee continues to closely monitor comment would prevent the Board’s
action from being effective as promptly IORR ..................................... 0.75
inflation indicators and global economic and
IOER ..................................... 0.75
financial developments. as necessary in the public interest, and
In view of realized and expected labor would not otherwise serve any useful
market conditions and inflation, the * * * * *
purpose. Notice, public comment, and a
Committee decided to raise the target range delayed effective date would create By order of the Board of Governors of the
for the federal funds rate to 1⁄2 to 3⁄4 percent. Federal Reserve System, January 9, 2017.
The stance of monetary policy remains uncertainty about the finality and
effectiveness of the Board’s action and Robert deV. Frierson,
accommodative, thereby supporting some
further strengthening in labor market undermine the effectiveness of that Secretary of the Board.
conditions and a return to 2 percent inflation. action. Accordingly, the Board has [FR Doc. 2017–00613 Filed 1–19–17; 8:45 am]
A Federal Reserve Implementation determined that good cause exists to BILLING CODE 6210–01–P
note released simultaneously with the dispense with the notice, public
announcement stated that: comment, and delayed effective date
procedures of the APA with respect to NATIONAL CREDIT UNION
The Board of Governors of the Federal the final amendments to Regulation D. ADMINISTRATION
Reserve System voted unanimously to raise
the interest rate paid on required and excess IV. Regulatory Flexibility Analysis 12 CFR Part 747
reserve balances to 0.75 percent, effective
December 15, 2016. The Regulatory Flexibility Act RIN 3133–AE67
As a result, the Board is amending (‘‘RFA’’) does not apply to a rulemaking
where a general notice of proposed Civil Monetary Penalty Inflation
§ 204.10(b)(5) of Regulation D to change Adjustment
IORR to 0.75 percent and IOER to 0.75 rulemaking is not required.5 As noted
percent. previously, the Board has determined AGENCY: National Credit Union
mstockstill on DSK3G9T082PROD with RULES
that it is unnecessary and contrary to Administration (NCUA).
III. Administrative Procedure Act the public interest to publish a general ACTION: Interim final rule.
In general, the Administrative notice of proposed rulemaking for this
Procedure Act (12 U.S.C. 551 et seq.) final rule. Accordingly, the RFA’s SUMMARY: The NCUA Board (Board) is
(‘‘APA’’) imposes three principal requirements relating to an initial and amending its regulations to adjust the
requirements when an agency maximum amount of each civil
promulgates legislative rules (rules 55 U.S.C. 603 and 604. monetary penalty (CMP) within its
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![7638 Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Rules and Regulations
jurisdiction to account for inflation. I. Legal Background U) 9 for October of the year immediately
This action, including the amount of the preceding the year the adjustment is
A. Statutory Requirements and OMB made exceeds the CPI–U for October of
adjustments, is required under the
Guidance the prior year.10 For example, for the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by The Debt Collection Improvement Act adjustment made in 2017, agencies must
the Debt Collection Improvement Act of of 1996 1 (DCIA) amended the Federal compare the October 2016 CPI–U with
1996 and the Federal Civil Penalties Civil Penalties Inflation Adjustment Act the October 2015 CPI–U.
Inflation Adjustment Act Improvements The 2015 amendments also provide
of 1990 2 (FCPIA Act) to require every
that agencies may forgo the required
Act of 2015. federal agency to enact regulations that
annual adjustments in certain
adjust each CMP provided by law under
DATES: This interim final rule is circumstances. Specifically, in a
its jurisdiction by the rate of inflation at
effective January 23, 2017. Comments subsection titled ‘‘Other Adjustments
least once every four years.
must be received on or before February Made,’’ the statute provides that an
22, 2017. In November 2015, Congress further agency is not required to make an
amended the CMP inflation annual adjustment to a CMP if it has
ADDRESSES: You may submit comments requirements in the Bipartisan Budget been increased by a greater amount than
by any of the following methods (Please Act of 2015,3 which contains the the contemplated annual adjustment in
send comments by one method only): Federal Civil Penalties Inflation the preceding 12 months.11 When these
• Federal eRulemaking Portal: http:// Adjustment Act Improvements Act of criteria are met, the agency has
www.regulations.gov. Follow the 2015 (the 2015 amendments).4 This discretion not to make the adjustments
instructions for submitting comments. legislation provided for an initial otherwise required by the statute.
‘‘catch-up’’ adjustment of CMPs in 2016, In addition, the 2015 amendments
• NCUA Web site: https:// followed by annual adjustments. The directed the Office of Management and
www.ncua.gov/regulation-supervision/ catch-up adjustment re-set CMP Budget (OMB) to issue guidance to
Pages/rules/proposed.aspx. Follow the maximum amounts by setting aside the agencies on implementing the inflation
instructions for submitting comments. inflation adjustments that agencies adjustments.12 OMB is required to issue
• Email: Address to regcomments@ made in prior years and instead its guidance each December and did so
ncua.gov. Include ‘‘[Your name] calculated inflation with reference to on December 16, 2016.13 This OMB
Comments on ‘‘Civil Monetary Penalty the year when each CMP was enacted or guidance for the upcoming 2017
Inflation Adjustment’’ in the email last modified by Congress. Agencies adjustments includes an inflationary
subject line. were required to publish their catch-up multiplier (1.01636) to apply to each
adjustments in an interim final rule by current CMP maximum amount to
• Fax: (703) 518–6319. Use the determine the adjusted maximum. The
July 1, 2016 and make them effective by
subject line described above for email. August 1, 2016.5 NCUA complied with guidance also addresses the exception
• Mail: Address to Gerard Poliquin, these requirements in a June 2016 described above for adjustments made
Secretary of the Board, National Credit interim final rule, followed by an in the preceding 12 months, indicating
Union Administration, 1775 Duke October 2016 final rule to confirm the that the exception applies to
Street, Alexandria, Virginia 22314– adjustments as final.6 adjustments made due to a law other
3428. than the 2015 amendments.14 Finally,
The 2015 amendments also specified
the guidance addresses rulemaking
• Hand Delivery/Courier: Same as how agencies must conduct annual
procedures and agency reporting and
mail address. inflation adjustments after the 2016
oversight requirements.
Public Inspection: All public catch-up adjustment. Beginning in 2017, The next section sets forth the Board’s
comments are available on the agency’s agencies must make the required calculation of the adjustments for 2017,
adjustments and publish them in the in accordance with the foregoing
Web site at http://www.ncua.gov/
Federal Register by January 15 of each requirements.
RegulationsOpinionsLaws/comments as
succeeding year.7 The statute provides
submitted, except as may not be that the adjustments shall be made B. Application to the 2017 Adjustments
possible for technical reasons. Public notwithstanding the section of the
comments will not be edited to remove This section applies the statutory
Administrative Procedure Act (APA) requirements and OMB’s guidance to
any identifying or contact information. that requires prior notice and public NCUA CMPs.
Paper copies of comments may be comment for agency rulemaking.8 The As explained above, the 2015
inspected in NCUA’s law library at 1775 2015 amendments also specify that each amendments require NCUA to adjust the
Duke Street, Alexandria, Virginia 22314, CMP maximum must be increased by
by appointment weekdays between 9:00 the percentage by which the consumer 9 This index is published by the Department of
a.m. and 3:00 p.m. To make an price index for urban consumers (CPI– Labor, Bureau of Labor Statistics, and is available
appointment, call (703) 518–6546 or at its Web site: http://www.bls.gov/cpi/.
10 Public Law 114–74, Sec. 701(b)(1)(2)(B), 129
send an email to OGCMail@ncua.gov. 1 Public Law 104–134, Sec. 31001(s), 110 Stat.
Stat. 584, 600 (Nov. 2, 2015).
1321–373 (Apr. 26, 1996). The law is codified at 28 11 Public Law 114–74, Sec. 701(b)(1), 129 Stat.
FOR FURTHER INFORMATION CONTACT: Ian U.S.C. 2461 note.
584, 600 (Nov. 2, 2015).
Marenna, Senior Trial Attorney, at 1775 2 Public Law 101–410, 104 Stat. 890 (Oct. 5,
12 Public Law 114–74, Sec. 701(b)(4), 129 Stat.
Duke Street, Alexandria, VA 22314, or 1990), codified at 28 U.S.C. 2461 note.
3 Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015).
584, 601 (Nov. 2, 2015).
telephone: (703) 518–6540.
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13 Id.; OMB, Implementation of the 2017 Annual
4 129 Stat. 599.
Adjustment Pursuant to the Federal Civil Penalties
SUPPLEMENTARY INFORMATION: 5 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584,
Inflation Adjustment Act Improvements Act of
599 (Nov. 2, 2015). 2015, M–17–11 (Dec. 16, 2016), available at https://
I. Legal Background 6 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov.
www.whitehouse.gov/sites/default/files/omb/
II. Calculation of Adjustments 7, 2016). memoranda/2017/m-17-11_0.pdf (noting that the
III. Regulatory Procedures 7 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, applicable 2017 CMP-adjustment multiplier is
599 (Nov. 2, 2015). 1.01636).
8 Id. 14 Id. at 3.
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![Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Rules and Regulations 7641
U.S. Code citation CMP description New maximum amount
(1) 12 U.S.C. 1782(a)(3) ............... Inadvertent failure to submit a report or the inad- $3,849.
vertent submission of a false or misleading report.
(2) 12 U.S.C. 1782(a)(3) ............... Non-inadvertent failure to submit a report or the non- $38,492.
inadvertent submission of a false or misleading re-
port.
(3) 12 U.S.C. 1782(a)(3) ............... Failure to submit a report or the submission of a $1,924,589 or 1 percent of the total assets of the
false or misleading report done knowingly or with credit union, whichever is less.
reckless disregard.
(4) 12 U.S.C. 1782(d)(2)(A) .......... Tier 1 CMP for inadvertent failure to submit certified $3,519.
statement of insured shares and charges due to
NCUSIF, or inadvertent submission of false or
misleading statement.
(5) 12 U.S.C. 1782(d)(2)(B) .......... Tier 2 CMP for non-inadvertent failure to submit cer- $35,186.
tified statement or submission of false or mis-
leading statement.
(6) 12 U.S.C. 1782(d)(2)(C) .......... Tier 3 CMP for failure to submit a certified statement $1,759,309 or 1 percent of the total assets of the
or the submission of a false or misleading state- credit union, whichever is less.
ment done knowingly or with reckless disregard.
(7) 12 U.S.C. 1785(a)(3) ............... Non-compliance with insurance logo requirements ... $120.
(8) 12 U.S.C. 1785(e) (3) .............. Non-compliance with NCUA security requirements ... $279.
(9) 12 U.S.C. 1786(k)(2)(A) .......... Tier 1 CMP for violations of law, regulation, and $9,623.
other orders or agreements.
(10) 12 U.S.C. 1786(k)(2)(A) ........ Tier 2 CMP for violations of law, regulation, and $48,114.
other orders or agreements and for recklessly en-
gaging in unsafe or unsound practices or
breaches of fiduciary duty.
(11) 12 U.S.C. 1786(k)(2)(A) ........ Tier 3 CMP for knowingly committing the violations For a person other than an insured credit union:
under Tier 1 or 2 (natural person). $1,924,589; For an insured credit union:
$1,924,589 or 1 percent of the total assets of the
credit union, whichever is less.
(12) 12 U.S.C. 1786(w)(5)(ii) ........ Non-compliance with senior examiner post-employ- $316,566.
ment restrictions.
(13) 15 U.S.C. 1639e(k) ............... Non-compliance with appraisal independence re- First violation: $11,053. Subsequent violations:
quirements. $22,105.
(14) 42 U.S.C. 4012a(f)(5) ............ Non-compliance with flood insurance requirements .. $2,090.
(b) The adjusted amounts displayed in Administration Regulations (EAR) to This rule is purely non-substantive
paragraph (a) of this section apply to cite the most recent Presidential notice and makes no changes other than to
civil monetary penalties that are continuing an emergency declared revise CFR authority citations for the
assessed after the date the increase takes pursuant to the International Emergency purpose of making the authority
effect, including those whose associated Economic Powers Act. This is a non- citations current. It does not change the
violation or violations pre-dated the substantive rule that only updates text of any section of the EAR, nor does
increase and occurred after November 2, authority paragraphs of the EAR. It does it alter any right, obligation or
2015. not alter any right, obligation or prohibition that applies to any person
[FR Doc. 2017–00473 Filed 1–19–17; 8:45 am] prohibition that applies to any person under the EAR.
under the EAR.
BILLING CODE 7535–01–P Rulemaking Requirements
DATES: The rule is effective January 23,
2017. 1. Executive Orders 13563 and 12866
DEPARTMENT OF COMMERCE FOR FURTHER INFORMATION CONTACT: direct agencies to assess all costs and
Nancy Kook, Regulatory Policy benefits of available regulatory
Bureau of Industry and Security Division, Bureau of Industry and alternatives and, if regulation is
Security, Telephone: (202) 482–2440. necessary, to select regulatory
15 CFR Parts 730, 734, 736, 742, 744, SUPPLEMENTARY INFORMATION:
approaches that maximize net benefits
and 745 (including potential economic,
Background environmental, public health and safety
[Docket No. 170103002–7002–01]
The authority for parts 730, 734, 736, effects, distributive impacts, and
RIN 0694–AH22 742, 744, and 745 of the EAR rests, in equity). This rule does not impose any
part, on Executive Order 12938 of regulatory burden on the public and is
Updated Statements of Legal Authority consistent with the goals of Executive
November 14, 1994—Proliferation of
for the Export Administration Order 13563. This rule has been
Weapons of Mass Destruction, 59 FR
Regulations determined to be not significant for
59099, 3 CFR, 1994 Comp., p. 950 and
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AGENCY: Bureau of Industry and on annual notices continuing the purposes of Executive Order 12866.
Security, Commerce. emergency declared in that executive 2. Notwithstanding any other
ACTION: Final rule. order. This rule revises the authority provision of law, no person is required
citations for the affected parts of the to respond to, nor shall any person be
SUMMARY: This rule updates the Code of EAR to cite the most recent such notice, subject to a penalty for failure to comply
Federal Regulations (CFR) legal which the President signed on with, a collection of information subject
authority citations in the Export November 8, 2016. to the requirements of the Paperwork
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Document Created: 2017-01-20 01:30:30
Document Modified: 2017-01-20 01:30:30
| 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 | Interim final rule. | |
| Dates | This interim final rule is effective January 23, 2017. Comments must be received on or before February 22, 2017. | |
| Contact | Ian Marenna, Senior Trial Attorney, at 1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6540. | |
| FR Citation | 82 FR 7637 | |
| RIN Number | 3133-AE67 | |
| CFR Associated | Civil Monetary Penalties and Credit Unions |
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