83 FR 5055 - Request for Information Regarding Bureau Rules of Practice for Adjudication Proceedings

BUREAU OF CONSUMER FINANCIAL PROTECTION

Federal Register Volume 83, Issue 24 (February 5, 2018)

Page Range		5055-5056
FR Document		2018-02208
The Bureau of Consumer Financial Protection (Bureau) is seeking comments and information from interested parties to assist the Bureau in considering whether and how to amend the Bureau's Rules of Practice for Adjudication Proceedings.
Federal Register, Volume 83 Issue 24 (Monday, February 5, 2018)
[Federal Register Volume 83, Number 24 (Monday, February 5, 2018)]
[Proposed Rules]
[Pages 5055-5056]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-02208]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 83, No. 24 / Monday, February 5, 2018 / 
Proposed Rules

[[Page 5055]]



BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1081

[Docket No. CFPB-2018-0002]


Request for Information Regarding Bureau Rules of Practice for 
Adjudication Proceedings

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Request for information.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
seeking comments and information from interested parties to assist the 
Bureau in considering whether and how to amend the Bureau's Rules of 
Practice for Adjudication Proceedings.

DATES: Comments must be received by April 6, 2018.

ADDRESSES: You may submit responsive information and other comments, 
identified by Docket No. CFPB-2018-0002, by any of the following 
methods:
     Electronic: Go to http://www.regulations.gov. Follow the 
instructions for submitting comments.
     Email: [email protected]. Include Docket 
No. CFPB-2018-0002 in the subject line of the message.
     Mail: Monica Jackson, Office of the Executive Secretary, 
Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC 
20552.
     Hand Delivery/Courier: Monica Jackson Office of the 
Executive Secretary, Consumer Financial Protection Bureau, 1700 G 
Street NW, Washington, DC 20552.
    Instructions: The Bureau encourages the early submission of 
comments. All submissions must include the document title and docket 
number. Please note the number of the question on which you are 
commenting at the top of each response (you do not need to answer all 
questions). Because paper mail in the Washington, DC area and at the 
Bureau is subject to delay, commenters are encouraged to submit 
comments electronically. In general, all comments received will be 
posted without change to http://www.regulations.gov. In addition, 
comments will be available for public inspection and copying at 1700 G 
St NW, Washington, DC 20552, on official business days between the 
hours of 10 a.m. and 5 p.m. eastern standard time. You can make an 
appointment to inspect the documents by telephoning 202-435-7275.
    All submissions in response to this request for information, 
including attachments and other supporting materials, will become part 
of the public record and subject to public disclosure. Sensitive 
personal information, such as account numbers or Social Security 
numbers, or names of other individuals, should not be included. 
Submissions will not be edited to remove any identifying or contact 
information.

FOR FURTHER INFORMATION CONTACT: For general inquiries and submission 
process questions, please call Monica Jackson at (202) 435-7275.

SUPPLEMENTARY INFORMATION: The Consumer Financial Protection Act of 
2010 (Act) required the Bureau to prescribe rules establishing such 
procedures as may be necessary to carry out hearings and adjudications 
conducted pursuant to 12 U.S.C. 5563. 12 U.S.C. 5563(e). On July 28, 
2011, the Bureau published an interim final rule seeking comment and 
prescribing rules establishing such hearings and procedures, with the 
exception of rules relating to the issuance of a temporary cease-and-
desist order (TCDO) pursuant to section 1053(c) of the Act. 76 FR 45338 
(July 28, 2011). The Bureau responded to comments received and 
published a final rule on June 29, 2012. 77 FR 39058 (June 29, 2012). 
This rule was codified at 12 CFR part 1081, subparts A-D. The Bureau 
published an interim final rule seeking comment and prescribing rules 
on TCDOs on September 26, 2013. 78 FR 59163 (Sept. 26, 2013). The 
Bureau received a single comment on this rule. Following consideration 
of the comment, the Bureau adopted the interim final rule without 
change on June 18, 2014. 79 FR 34622 (June 18, 2014). This rule was 
codified at 12 CFR part 1081, subpart E. Collectively, the rules 
codified at 12 CFR part 1081 are titled ``Rules of Practice for 
Adjudication Proceedings'' (Rules).
    The Rules pertain to the general conduct of administrative 
adjudication proceedings, the initiation of such proceedings and 
prehearing rules, hearings, decisions and appeals, and temporary cease-
and-desist proceedings. To date, there have been eight administrative 
adjudication proceedings under the Rules that were not immediately 
resolved by the issuance of a consent order pursuant to 12 CFR 
1081.200(d). Six of these proceedings were settled during the course of 
the adjudication, one proceeding is pending, and one proceeding has 
resulted in a final decision.
    The Bureau is, as described below, issuing this request for 
information seeking public comment on whether and how it might improve 
its administrative adjudication processes, including the Rules, while 
continuing to achieve the Bureau's statutory purposes and objectives.

Overview of This Request for Information

    The Bureau is using this request for information to seek public 
input regarding the Rules. The Bureau encourages comments from all 
interested members of the public. The Bureau anticipates that the 
responding public may include entities that have participated in Bureau 
administrative adjudication proceedings or similar proceedings at other 
agencies, members of the bar who represent these entities, agencies 
that utilize an administrative adjudication process, individual 
consumers, consumer advocates, regulators, and researchers or members 
of academia.
    Section 1053 of the Act authorizes the Bureau to conduct 
administrative adjudications. The Bureau in the past has brought cases 
in the administrative setting in accordance with applicable law. The 
Bureau understands, however, that the administrative adjudication 
process can result in undue burdens, impacts, or costs on the parties 
subject to these proceedings. Members of the public are likely to have 
useful information and perspectives on the benefits and impacts of the 
Bureau's use of administrative adjudications, as well as existing 
administrative adjudication processes and the Rules. The Bureau is 
especially interested in receiving suggestions for whether it should be 
availing itself of the administrative

[[Page 5056]]

adjudication process, and if so how its processes and Rules could be 
updated, streamlined, or revised to better achieve the Bureau's 
statutory objectives; to minimize burdens, impacts, or costs on parties 
subject to these proceedings; to align the Bureau's administrative 
adjudication Rules more closely with those of other agencies; and to 
better provide fair and efficient process to individuals and entities 
involved in the adjudication process, including ensuring that they have 
a full and fair opportunity to present evidence and arguments relevant 
to the proceeding. Interested parties may also be well-positioned to 
identify those parts of the Bureau's administrative adjudication 
processes and Rules that they believe may be most in need of 
improvement, and, thus, assist the Bureau in prioritizing and properly 
tailoring its process for reviewing its processes and Rules. In short, 
engaging members of the public in an open, transparent process will 
help inform the Bureau's review of its processes related to 
administrative adjudications.

Questions for Commenters

    To allow the Bureau to more effectively evaluate suggestions, the 
Bureau requests that, where possible, comments include:
     Specific discussion of the positive and negative aspects 
of the Bureau's administrative adjudication processes, including 
whether a policy of proceeding in Federal court in all instances would 
be preferable;
     Specific suggestions regarding any potential updates or 
modifications to the Bureau's administrative adjudication processes, 
including the Bureau's Rules, consistent with the Bureau's statutory 
purposes and objectives, and including, in as much detail as possible, 
the potential update or modification, supporting data or other 
information on impacts and costs, or information concerning alignment 
with the processes of other agencies; and
     Specific identification of any aspects of the Bureau's 
administrative adjudication processes, including the Bureau's Rules, 
that should not be modified, consistent with the Bureau's statutory 
purposes and objectives, and including, in as much detail as possible, 
supporting data or other information on impacts and costs, information 
related to consumer and public benefit resulting from these processes, 
or information concerning alignment with the processes of other 
agencies.
    The following list of general areas represents a preliminary 
attempt by the Bureau to identify elements of Bureau processes related 
to administrative adjudications that may be deserving of more immediate 
focus. This non-exhaustive list is meant to assist in the formulation 
of comments and is not intended to restrict the issues that may be 
addressed. In addressing these questions or others, the Bureau requests 
that commenters identify with specificity the Bureau regulations or 
practices at issue, providing legal citations where appropriate and 
available. Please feel free to comment on some or all of the questions 
below, but please be sure to indicate on which area you are commenting.
    The Bureau is seeking feedback on all aspects of its administrative 
adjudication process, including but not limited to:
    1. Whether, as a matter of policy, the Bureau should pursue 
contested matters only in Federal court rather than through the 
administrative adjudication process;
    2. The Rules' protection of the rights and interests of third 
parties;
    3. 12 CFR 1081.200(b)'s requirements for the contents of the 
Bureau's notice of charges;
    4. The policy, expressed in 12 CFR 1081.101 for administrative 
adjudication proceedings to be conducted expeditiously, including:
    a. 12 CFR 1081.201(a)'s requirement that respondents file an answer 
to a notice of charges within 14 days;
    b. 12 CFR 1081.115(b)'s requirement that the hearing officer in 
administrative adjudications strongly disfavor motions for extensions 
of time except upon a showing of substantial prejudice;
    c. 12 CFR 1081.212(h)'s requirement that the hearing officer decide 
any motion for summary disposition within 30 days; and
    d. the Bureau's implementation of the requirement in 12 U.S.C. 
5563(b)(1)(B) that hearings take place within 30 to 60 days of the 
notice of charges, unless the respondent seeks an extension of that 
time period;
    5. 12 CFR 1081.206's requirements that the Bureau make documents 
available for copying or inspection, including whether the Bureau 
should produce those documents in electronic form to respondents in the 
first instance, at the Bureau's expense;
    6. 12 CFR 1081.208's requirements for issuing subpoenas, and 
whether counsel for a party should be entitled to issue subpoenas 
without leave of the hearing officer;
    7. 12 CFR 1081.209(g)(3)'s provision that failure to object to a 
question or document at a deposition is, with some exception, not 
deemed a waiver of the objection;
    8. 12 CFR 1081.210(b)'s limitation on the number of expert 
witnesses any party may call at a hearing, absent ``extraordinary 
circumstances'';
    9. 12 CFR 1081.210(c)'s requirements for expert reports, including 
whether that paragraph should expressly incorporate the requirements of 
the Federal Rules of Civil Procedure relating to the required 
disclosures of expert witnesses;
    10. 12 CFR 1081.212(e)'s instruction that extensions of the length 
limitation for motions for summary disposition are disfavored;
    11. 12 CFR 1081.303(b)'s rules pertaining to admissible evidence in 
administrative adjudications, including:
    a. Whether, in general, the Bureau should expressly adopt the 
Federal Rules of Evidence; and
    b. whether, if the Bureau does not expressly adopt the Federal 
Rules of Evidence, the acceptance of prior testimony hearsay evidence 
pursuant to 12 CFR 1081.303(b)(3) should comply with the requirements 
of Federal Rule of Evidence 804(b)(1);
    12. The Rules' lack of authorization for parties to conduct certain 
discovery, including deposing fact witnesses or serving 
interrogatories; and
    13. Whether respondents should be afforded the opportunity to stay 
a decision of the Director pending appeal by filing a supersedeas bond, 
consistent with Federal Rule of Civil Procedure 62(d).

    Authority:  12 U.S.C. 5511(c).

    Dated: January 30, 2018.
Mick Mulvaney,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2018-02208 Filed 2-2-18; 8:45 am]
 BILLING CODE 4810-AM-P
5056 Federal Register / Vol. 83, No. 24 / Monday, February 5, 2018 / Proposed Rules

adjudication process, and if so how its processes related to administrative 8. 12 CFR 1081.210(b)’s limitation on
processes and Rules could be updated, adjudications that may be deserving of the number of expert witnesses any
streamlined, or revised to better achieve more immediate focus. This non- party may call at a hearing, absent
the Bureau’s statutory objectives; to exhaustive list is meant to assist in the ‘‘extraordinary circumstances’’;
minimize burdens, impacts, or costs on formulation of comments and is not 9. 12 CFR 1081.210(c)’s requirements
parties subject to these proceedings; to intended to restrict the issues that may for expert reports, including whether
align the Bureau’s administrative be addressed. In addressing these that paragraph should expressly
adjudication Rules more closely with questions or others, the Bureau requests incorporate the requirements of the
those of other agencies; and to better that commenters identify with Federal Rules of Civil Procedure relating
provide fair and efficient process to specificity the Bureau regulations or to the required disclosures of expert
individuals and entities involved in the practices at issue, providing legal witnesses;
adjudication process, including citations where appropriate and 10. 12 CFR 1081.212(e)’s instruction
ensuring that they have a full and fair available. Please feel free to comment on that extensions of the length limitation
opportunity to present evidence and some or all of the questions below, but for motions for summary disposition are
arguments relevant to the proceeding. please be sure to indicate on which area disfavored;
Interested parties may also be well- you are commenting. 11. 12 CFR 1081.303(b)’s rules
positioned to identify those parts of the The Bureau is seeking feedback on all pertaining to admissible evidence in
Bureau’s administrative adjudication aspects of its administrative administrative adjudications, including:
processes and Rules that they believe adjudication process, including but not a. Whether, in general, the Bureau
may be most in need of improvement, limited to: should expressly adopt the Federal
and, thus, assist the Bureau in 1. Whether, as a matter of policy, the Rules of Evidence; and
prioritizing and properly tailoring its Bureau should pursue contested matters b. whether, if the Bureau does not
process for reviewing its processes and only in Federal court rather than expressly adopt the Federal Rules of
Rules. In short, engaging members of the through the administrative adjudication Evidence, the acceptance of prior
public in an open, transparent process process; testimony hearsay evidence pursuant to
will help inform the Bureau’s review of 2. The Rules’ protection of the rights 12 CFR 1081.303(b)(3) should comply
its processes related to administrative and interests of third parties; with the requirements of Federal Rule of
adjudications. 3. 12 CFR 1081.200(b)’s requirements Evidence 804(b)(1);
for the contents of the Bureau’s notice 12. The Rules’ lack of authorization
Questions for Commenters
of charges; for parties to conduct certain discovery,
To allow the Bureau to more 4. The policy, expressed in 12 CFR including deposing fact witnesses or
effectively evaluate suggestions, the 1081.101 for administrative serving interrogatories; and
Bureau requests that, where possible, adjudication proceedings to be 13. Whether respondents should be
comments include: conducted expeditiously, including: afforded the opportunity to stay a
• Specific discussion of the positive a. 12 CFR 1081.201(a)’s requirement decision of the Director pending appeal
and negative aspects of the Bureau’s that respondents file an answer to a by filing a supersedeas bond, consistent
administrative adjudication processes, notice of charges within 14 days; with Federal Rule of Civil Procedure
including whether a policy of b. 12 CFR 1081.115(b)’s requirement 62(d).
proceeding in Federal court in all that the hearing officer in administrative
Authority: 12 U.S.C. 5511(c).
instances would be preferable; adjudications strongly disfavor motions
• Specific suggestions regarding any for extensions of time except upon a Dated: January 30, 2018.
potential updates or modifications to showing of substantial prejudice; Mick Mulvaney,
the Bureau’s administrative c. 12 CFR 1081.212(h)’s requirement Acting Director, Bureau of Consumer
adjudication processes, including the that the hearing officer decide any Financial Protection.
Bureau’s Rules, consistent with the motion for summary disposition within [FR Doc. 2018–02208 Filed 2–2–18; 8:45 am]
Bureau’s statutory purposes and 30 days; and BILLING CODE 4810–AM–P
objectives, and including, in as much d. the Bureau’s implementation of the
detail as possible, the potential update requirement in 12 U.S.C. 5563(b)(1)(B)
or modification, supporting data or that hearings take place within 30 to 60 CONSUMER PRODUCT SAFETY
other information on impacts and costs, days of the notice of charges, unless the COMMISSION
or information concerning alignment respondent seeks an extension of that
with the processes of other agencies; time period; 16 CFR Parts 1500 and 1507
and 5. 12 CFR 1081.206’s requirements
• Specific identification of any that the Bureau make documents [Docket No. CPSC–2006–0034]
aspects of the Bureau’s administrative available for copying or inspection,
Amendments to Fireworks
adjudication processes, including the including whether the Bureau should
Regulations; Notice of Opportunity for
Bureau’s Rules, that should not be produce those documents in electronic
Oral Presentation of Comments
modified, consistent with the Bureau’s form to respondents in the first instance,
statutory purposes and objectives, and at the Bureau’s expense; AGENCY: Consumer Product Safety
including, in as much detail as possible, 6. 12 CFR 1081.208’s requirements for Commission.
supporting data or other information on issuing subpoenas, and whether counsel ACTION: Notice of proposed rulemaking;
nshattuck on DSK9F9SC42PROD with PROPOSALS

impacts and costs, information related for a party should be entitled to issue opportunity for oral presentation of
to consumer and public benefit resulting subpoenas without leave of the hearing comments.
from these processes, or information officer;
concerning alignment with the 7. 12 CFR 1081.209(g)(3)’s provision SUMMARY: The Consumer Product Safety
processes of other agencies. that failure to object to a question or Commission (Commission or CPSC) will
The following list of general areas document at a deposition is, with some be holding a meeting to provide
represents a preliminary attempt by the exception, not deemed a waiver of the interested parties with an opportunity to
Bureau to identify elements of Bureau objection; present oral comments on the notice of

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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		Proposed Rules
Action		Request for information.
Dates		Comments must be received by April 6, 2018.
Contact		For general inquiries and submission process questions, please call Monica Jackson at (202) 435-7275.
FR Citation		83 FR 5055