83 FR 1182 - Rules of Practice for Hearings

FEDERAL RESERVE SYSTEM

Federal Register Volume 83, Issue 7 (January 10, 2018)

The Board of Governors of the Federal Reserve System (the ``Board'') is issuing a final rule amending its rules of practice and procedure to adjust the amount of each civil money penalty (``CMP'') provided by law within its jurisdiction to account for inflation as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

[Federal Register Volume 83, Number 7 (Wednesday, January 10, 2018)]
[Rules and Regulations]
[Pages 1182-1184]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00227]


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FEDERAL RESERVE SYSTEM

12 CFR Part 263

[Docket No. R-1595]
RIN 7100 AE 95


Rules of Practice for Hearings

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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SUMMARY: The Board of Governors of the Federal Reserve System (the 
``Board'') is issuing a final rule amending its rules of practice and 
procedure to adjust the amount of each civil money penalty (``CMP'') 
provided by law within its jurisdiction to account for inflation as 
required by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015.

DATES: This final rule is effective on January 10, 2018.

FOR FURTHER INFORMATION CONTACT: Patrick M. Bryan, Assistant General 
Counsel, (202) 974-7093, or Thomas O. Kelly, Senior Attorney, (202) 
974-7059, Legal Division, Board of Governors of the Federal Reserve 
System, 20th Street and Constitution Ave. NW, Washington, DC 20551. For 
users of Telecommunication Device for the Deaf (TDD) only, contact 
(202) 263-4869.

SUPPLEMENTARY INFORMATION:

Federal Civil Penalties Inflation Adjustment Act

    The Federal Civil Penalties Inflation Adjustment Act of 1990, 28 
U.S.C. 2461 note (``FCPIA Act''), requires federal agencies to adjust, 
by regulation, the CMPs within their jurisdiction to account for 
inflation. The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (the ``2015 Act'') \1\ amended the FCPIA Act 
to

[[Page 1183]]

require federal agencies to make annual adjustments not later than 
January 15 of every year.\2\ The Board is now issuing a new final rule 
to set the CMP levels pursuant to the required annual adjustment for 
2018. The Board will apply these adjusted maximum penalty levels to any 
penalties assessed on or after January 10, 2018, whose associated 
violations occurred on or after November 2, 2015. Penalties assessed 
for violations occurring prior to November 2, 2015 will be subject to 
the amounts set in the Board's 2012 adjustment pursuant to the FCPIA 
Act.\3\
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    \1\ Public Law 114-74, 129 Stat. 599 (2015) (codified at 28 
U.S.C. 2461 note).
    \2\ 28 U.S.C. 2461 note, sec. 4(b)(1).
    \3\ 77 FR 68,680 (Nov. 16, 2012).
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    Under the 2015 Act, the annual adjustment to be made for 2018 is 
the percentage by which the Consumer Price Index for the month of 
October 2017 exceeds the Consumer Price Index for the month of October 
2016. On December 15, 2017, as directed by the 2015 Act, the Office of 
Management and Budget (OMB) issued guidance to affected agencies on 
implementing the required annual adjustment which included the relevant 
inflation multiplier.\4\ Using OMB's multiplier, the Board calculated 
the adjusted penalties for its CMPs, rounding the penalties to the 
nearest dollar.\5\
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    \4\ OMB Memorandum M-18-03, Implementation of Penalty Inflation 
Adjustments for 2018, Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (Dec. 15, 2017).
    \5\ Under the 2015 Act and implementing OMB guidance, agencies 
are not required to make an adjustment to a CMP if, during the 12 
months preceding the required adjustment, such penalty increased due 
to a law other than the 2015 Act by an amount greater than the 
amount of the required adjustment. No other laws have adjusted the 
CMPs within the Board's jurisdiction during the preceding 12 months.
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Administrative Procedure Act

    The 2015 Act states that agencies shall make the annual adjustment 
``notwithstanding section 553 of title 5, United States Code.'' 
Therefore, this rule is not subject to the provisions of the 
Administrative Procedure Act (the ``APA''), 5 U.S.C. 553, requiring 
notice, public participation, and deferred effective date.

Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires a 
regulatory flexibility analysis only for rules for which an agency is 
required to publish a general notice of proposed rulemaking. Because 
the 2015 Act states that agencies' annual adjustments are to be made 
notwithstanding section 553 of title 5 of United States Code--the APA 
section requiring notice of proposed rulemaking--the Board is not 
publishing a notice of proposed rulemaking. Therefore, the Regulatory 
Flexibility Act does not apply.

Paperwork Reduction Act

    There is no collection of information required by this final rule 
that would be subject to the Paperwork Reduction Act of 1995, 44 U.S.C. 
3501 et seq.

List of Subjects in 12 CFR Part 263

    Administrative practice and procedure, Claims, Crime, Equal access 
to justice, Lawyers, Penalties.

Authority and Issuance

    For the reasons set forth in the preamble, the Board amends 12 CFR 
part 263 as follows:

PART 263--RULES OF PRACTICE FOR HEARINGS

0
1. The authority citation for part 263 continues to read as follows:

    Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 248, 324, 334, 347a, 
504, 505, 1464, 1467, 1467a, 1817(j), 1818, 1820(k), 1829, 1831o, 
1831p-1, 1832(c), 1847(b), 1847(d), 1884, 1972(2)(F), 3105, 3108, 
3110, 3349, 3907, 3909(d), 4717; 15 U.S.C. 21, 78l(i), 78o-4, 78o-5, 
78u-2; 1639e(k); 28 U.S.C. 2461 note; 31 U.S.C. 5321; and 42 U.S.C. 
4012a.

0
2. Section 263.65 is revised to read as follows:


Sec.  263.65  Civil money penalty inflation adjustments.

    (a) Inflation adjustments. In accordance with the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, which 
further amended the Federal Civil Penalties Inflation Adjustment Act of 
1990, the Board has set forth in paragraph (b) of this section the 
adjusted maximum amounts for each civil money penalty provided by law 
within the Board's jurisdiction. The authorizing statutes contain the 
complete provisions under which the Board may seek a civil money 
penalty. The adjusted civil money penalties apply only to penalties 
assessed on or after January 10, 2018, whose associated violations 
occurred on or after November 2, 2015.
    (b) Maximum civil money penalties. The maximum (or, in the cases of 
12 U.S.C. 334 and 1832(c), fixed) civil money penalties as set forth in 
the referenced statutory sections are set forth in the table in this 
paragraph (b).

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                                                          Adjusted civil
                        Statute                           money penalty
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12 U.S.C. 324:
    Inadvertently late or misleading reports, inter               $3,928
     alia..............................................
    Other late or misleading reports, inter alia.......           39,278
    Knowingly or reckless false or misleading reports,         1,963,870
     inter alia........................................
12 U.S.C. 334..........................................              285
12 U.S.C. 374a.........................................              285
12 U.S.C. 504:
    First Tier.........................................            9,819
    Second Tier........................................           49,096
    Third Tier.........................................        1,963,870
12 U.S.C. 505:
    First Tier.........................................            9,819
    Second Tier........................................           49,096
    Third Tier.........................................        1,963,870
12 U.S.C. 1464(v)(4)...................................            3,928
12 U.S.C. 1464(v)(5)...................................           39,278
12 U.S.C. 1464(v)(6)...................................        1,963,870
12 U.S.C. 1467a(i)(2)..................................           49,096
12 U.S.C. 1467a(i)(3)..................................           49,096
12 U.S.C. 1467a(r):
    First Tier.........................................            3,928

[[Page 1184]]

 
    Second Tier........................................           39,278
    Third Tier.........................................        1,963,870
12 U.S.C. 1817(j)(16):
    First Tier.........................................            9,819
    Second Tier........................................           49,096
    Third Tier.........................................        1,963,870
12 U.S.C. 1818(i)(2):
    First Tier.........................................            9,819
    Second Tier........................................           49,096
    Third Tier.........................................        1,963,870
12 U.S.C. 1820(k)(6)(A)(ii)............................          323,027
12 U.S.C. 1832(c)......................................            2,852
12 U.S.C. 1847(b)......................................           49,096
12 U.S.C. 1847(d):
    First Tier.........................................            3,928
    Second Tier........................................           39,278
    Third Tier.........................................        1,963,870
12 U.S.C. 1884.........................................              285
12 U.S.C. 1972(2)(F):
    First Tier.........................................            9,819
    Second Tier........................................           49,096
    Third Tier.........................................        1,963,870
12 U.S.C. 3110(a)......................................           44,881
12 U.S.C. 3110(c):
    First Tier.........................................            3,591
    Second Tier........................................           35,904
    Third Tier.........................................        1,795,216
12 U.S.C. 3909(d)......................................            2,443
15 U.S.C. 78u-2(b)(1):
    For a natural person...............................            9,239
    For any other person...............................           92,383
15 U.S.C. 78u-2(b)(2)
    For a natural person...............................           92,383
    For any other person...............................          461,916
15 U.S.C. 78u-2(b)(3):
    For a natural person...............................          184,767
    For any other person...............................          923,831
15 U.S.C. 1639e(k)(1)..................................           11,279
15 U.S.C. 1639e(k)(2)..................................           22,556
42 U.S.C. 4012a(f)(5)..................................            2,133
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    By order of the Board of Governors of the Federal Reserve 
System, January 4, 2018.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2018-00227 Filed 1-9-18; 8:45 am]
BILLING CODE 6210-01-P