83 FR 51653 - Civil Penalty Inflation Adjustments

BUREAU OF CONSUMER FINANCIAL PROTECTION

Federal Register Volume 83, Issue 198 (October 12, 2018)

Page Range		51653-51654
FR Document		2018-22217

The Bureau of Consumer Financial Protection (Bureau) is proposing to amend its rule adjusting for inflation the maximum amount of each civil penalty within the Bureau's jurisdiction pursuant to 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 (Inflation Adjustment Act). The Bureau is proposing an amendment to specify that the adjusted civil monetary penalties only apply to assessments whose associated violations occurred on, or after, November 2, 2015 (the date the 2015 Inflation Adjustment Act amendments were signed into law). The Bureau requests public comment on all aspects of this proposal.

Federal Register, Volume 83 Issue 198 (Friday, October 12, 2018)

[Federal Register Volume 83, Number 198 (Friday, October 12, 2018)]
[Proposed Rules]
[Pages 51653-51654]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-22217]


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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. 198 / Friday, October 12, 2018 / 
Proposed Rules

[[Page 51653]]



BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1083

[Docket No. CFPB-2018-0034]


Civil Penalty Inflation Adjustments

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Proposed rule with request for public comment.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
proposing to amend its rule adjusting for inflation the maximum amount 
of each civil penalty within the Bureau's jurisdiction pursuant to 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 (Inflation Adjustment Act). The Bureau is proposing an amendment 
to specify that the adjusted civil monetary penalties only apply to 
assessments whose associated violations occurred on, or after, November 
2, 2015 (the date the 2015 Inflation Adjustment Act amendments were 
signed into law). The Bureau requests public comment on all aspects of 
this proposal.

DATES: Comments must be received on or before November 13, 2018.

ADDRESSES: You may submit comments, identified by Docket No. CFPB-2018-
0034 or RIN 3170-AA62, by any of the following methods:
     eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
     Email: FederalRegisterComments@cfpb.gov. Include Docket 
No. CFPB-2018-0034 or RIN 3170-AA62 in the subject line of the email.
     Mail/Hand Delivery/Courier: Comment Intake, Bureau of 
Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC 
20552.
    Instructions: All submissions should include the agency name and 
docket number or Regulatory Information Number (RIN) for this 
rulemaking. 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 
Street NW, Washington, DC 20552, on official business days between the 
hours of 10 a.m. and 5:30 p.m. Eastern Time. You can make an 
appointment to inspect the documents by telephoning 202-435-7275.
    All comments, 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, should not be included. Comments will not be edited 
to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: Monique Chenault, Paralegal Specialist 
or Shelley Thompson, Counsel, Office of Regulations, at (202) 435-7700 
or https://reginquiries.consumerfinance.gov. If you require this 
document in an alternative electronic format, please contact 
CFPB_Accessibility@cfpb.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Federal Civil Penalties Inflation Adjustment Act of 1990, as 
amended by the Debt Collection Improvement Act of 1996 and further 
amended in 2015 (Inflation Adjustment Act or Act), requires federal 
agencies to adjust the civil penalty amounts within their respective 
jurisdictions for inflation not later than July 1, 2016, and then not 
later than January 15 every year thereafter.\1\ The adjustments are 
designed to keep pace with inflation so that civil penalties retain 
their deterrent effect and promote compliance with the law.\2\
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    \1\ See 28 U.S.C. 2461 note.
    \2\ See Inflation Adjustment Act section 2, codified at 28 
U.S.C. 2461 note.
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    In June 2016, the Bureau issued an interim final rule (IFR) to 
create 12 CFR part 1083 and adjust the Bureau's civil penalty 
amounts.\3\ The Bureau did not receive comments in response to the IFR, 
which became effective on July 14, 2016. The Bureau annually adjusted 
its civil penalty amounts, as required by the Act, through rules issued 
in January 2017 and January 2018.\4\
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    \3\ 81 FR 38569 (June 14, 2016).
    \4\ 82 FR 3601 (Jan. 12, 2017); 83 FR 1525 (Jan. 12, 2018).
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    Section 6 of the Inflation Adjustment Act states that the increased 
civil penalty amounts ``shall apply only to civil monetary penalties, 
including those whose associated violation predated such increase, 
which are assessed after the date the increase takes effect.'' \5\ 12 
CFR 1083.1(b) as implemented by the IFR states that the Bureau's 
adjusted penalty amounts ``shall apply to civil penalties assessed 
after July 14, 2016, regardless of when the violation for which the 
penalty is assessed occurred.'' \6\
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    \5\ Inflation Adjustment Act section 6, codified at 28 U.S.C. 
2461 note.
    \6\ The subsequent annual adjustments have retained this general 
language other than updating the date to reflect the effective date 
of the particular annual adjustment.
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    The Director of the Office of Management and Budget (OMB) is 
required to issue guidance every year by December 15 to agencies on 
implementing the annual civil penalty inflation adjustments.\7\ In 
2017, the Office of Management and Budget issued guidance stating that, 
``[f]or the 2018 annual adjustment, the new penalty amounts should 
apply to penalties assessed after the effective date of the 2018 annual 
adjustment--which will be no later than January 15, 2018--including, if 
consistent with agency policy, assessments whose associated violations 
occurred on, or after, November 2, 2015'' (i.e., the date the 2015 
Amendments were signed into law).\8\
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    \7\ Inflation Adjustment Act section 7, codified at 28 U.S.C. 
2461 note.
    \8\ Memorandum to the Exec. Dep'ts & Agencies from Mick 
Mulvaney, Director, Office of Mgmt. & Budget, at 4 (Dec. 15, 2017), 
available at https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf. OMB's guidance issued in December 2016 (https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2017/m-17-11_0.pdf) contained similar language.
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    Consistent with the OMB guidance, the Bureau proposes to finalize 
the IFR with changes that specify that adjusted penalties will apply 
only to violations that occurred on or after November 2, 2015. The 
Bureau proposes to revise Sec.  1083.1(b) to read as follows: ``The 
adjustments in paragraph (a) of this section shall apply to civil 
penalties

[[Page 51654]]

assessed after January 15, 2019, whose associated violations occurred 
on or after November 2, 2015.'' The Bureau requests comment on this 
proposed change and all aspects of this proposal.

II. Legal Authority and Proposed Effective Date

    The Bureau issues this proposal under the Federal Civil Penalties 
Inflation Adjustment Act of 1990,\9\ as amended by the Debt Collection 
Improvement Act of 1996 \10\ and further amended by the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015,\11\ which 
requires the Bureau to adjust for inflation the civil penalties within 
its jurisdiction according to a statutorily prescribed formula.
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    \9\ Public Law 101-410, 104 Stat. 890.
    \10\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321, 
1321-373.
    \11\ Public Law 114-74, section 701, 129 Stat. 584, 599.
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    The Bureau proposes to issue a final rule with an effective date no 
sooner than January 15, 2019. The Bureau believes the effective date 
would coincide with, or occur after, the effective date of a 2019 
annual adjustment by the Bureau under the Act.\12\ The Bureau seeks 
comment on whether this proposed approach is appropriate.
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    \12\ The Administrative Procedure Act generally requires an 
agency to publish a rule at least 30 days before its effective date. 
See 5 U.S.C. 553(d).
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III. Regulatory Flexibility Act (RFA)

    The RFA generally requires an agency to conduct an initial 
regulatory flexibility analysis (IRFA) and a final regulatory 
flexibility analysis (FRFA) of any rule subject to notice-and-comment 
rulemaking requirements. An IRFA or FRFA is not required if the agency 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities.\13\ The Bureau also is subject 
to certain additional procedures under the RFA involving the convening 
of a panel to consult with small business representatives prior to 
proposing a rule for which an IRFA is required.\14\
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    \13\ See 5 U.S.C. 601 et seq.
    \14\ See 5 U.S.C. 609.
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    An IRFA is not required for this proposal because if adopted it 
would not have a significant economic impact on a substantial number of 
small entities. If adopted as proposed, the rule simply specifies that 
increased penalty amounts apply only to violations that occurred on or 
after November 2, 2015, rather than also to violations that occurred 
prior to November 2, 2015. Because it would limit the civil penalties 
covered persons may pay, the proposed rule would not impose any 
additional costs on them. Nor does the rule impose any new, affirmative 
duty on any small entity or change any existing requirements on small 
entities, and thus no small entity who is currently complying with the 
laws that the Bureau enforces will incur any expense from the amended 
rule.
    Accordingly, the Bureau's Acting Director, by signing below, 
certifies that this proposal, if adopted, would not have a significant 
economic impact on a substantial number of small entities. The Bureau 
requests comment on the analysis above and requests any relevant data.

IV. Paperwork Reduction Act

    The Bureau has determined that the proposed rule does not impose 
any new or revise any existing recordkeeping, reporting, or disclosure 
requirements on covered entities or members of the public that would be 
collections of information requiring approval by OMB under the 
Paperwork Reduction Act (PRA).\15\ The Bureau welcomes comments on this 
determination or any other aspects of this proposal for purposes of the 
PRA.
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    \15\ 44 U.S.C. 3501 et seq.
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List of Subjects in 12 CFR Part 1083

    Administrative practice and procedure, Consumer protection, 
Penalties.

Authority and Issuance

    For the reasons set forth above, the Bureau proposes to amend 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(b) is revised to read as follows:


Sec.  1083.1  Adjustments of civil penalty amounts.

* * * * *
    (b) The adjustments in paragraph (a) of this section shall apply to 
civil penalties assessed after January 15, 2019, whose associated 
violations occurred on or after November 2, 2015.

    Dated: October 5, 2018.
Mick Mulvaney,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2018-22217 Filed 10-11-18; 8:45 am]
 BILLING CODE 4810-AM-P

51654 Federal Register / Vol. 83, No. 198 / Friday, October 12, 2018 / Proposed Rules

assessed after January 15, 2019, whose proposed rule would not impose any Dated: October 5, 2018.
associated violations occurred on or additional costs on them. Nor does the Mick Mulvaney,
after November 2, 2015.’’ The Bureau rule impose any new, affirmative duty Acting Director, Bureau of Consumer
requests comment on this proposed on any small entity or change any Financial Protection.
change and all aspects of this proposal. existing requirements on small entities, [FR Doc. 2018–22217 Filed 10–11–18; 8:45 am]
II. Legal Authority and Proposed and thus no small entity who is BILLING CODE 4810–AM–P

Effective Date currently complying with the laws that
the Bureau enforces will incur any
The Bureau issues this proposal under
expense from the amended rule. DEPARTMENT OF ENERGY
the Federal Civil Penalties Inflation
Adjustment Act of 1990,9 as amended Accordingly, the Bureau’s Acting Federal Energy Regulatory
by the Debt Collection Improvement Act Director, by signing below, certifies that Commission
of 1996 10 and further amended by the this proposal, if adopted, would not
Federal Civil Penalties Inflation have a significant economic impact on 18 CFR Parts 2 and 38
Adjustment Act Improvements Act of a substantial number of small entities.
2015,11 which requires the Bureau to The Bureau requests comment on the [Docket No. RM05–5–026]
adjust for inflation the civil penalties analysis above and requests any relevant
Standards for Business Practices and
within its jurisdiction according to a data. Communication Protocols for Public
statutorily prescribed formula.
The Bureau proposes to issue a final IV. Paperwork Reduction Act Utilities
rule with an effective date no sooner AGENCY: Federal Energy Regulatory
The Bureau has determined that the
than January 15, 2019. The Bureau Commission, Department of Energy.
proposed rule does not impose any new
believes the effective date would ACTION: Notice of proposed rulemaking.
or revise any existing recordkeeping,
coincide with, or occur after, the
effective date of a 2019 annual reporting, or disclosure requirements on SUMMARY: The Federal Energy
adjustment by the Bureau under the covered entities or members of the Regulatory Commission (Commission)
Act.12 The Bureau seeks comment on public that would be collections of proposes to remove the incorporation by
whether this proposed approach is information requiring approval by OMB reference of the Wholesale Electric
appropriate. under the Paperwork Reduction Act Quadrant (WEQ) WEQ–006 Time Error
(PRA).15 The Bureau welcomes Correction Business Practice Standards
III. Regulatory Flexibility Act (RFA) comments on this determination or any as adopted by the North American
The RFA generally requires an agency other aspects of this proposal for Energy Standards Board (NAESB) in its
to conduct an initial regulatory purposes of the PRA. WEQ Version 003.0 Businesses Practice
flexibility analysis (IRFA) and a final Standards. The WEQ–006 Manual Time
regulatory flexibility analysis (FRFA) of List of Subjects in 12 CFR Part 1083
Error Correction Business Practice
any rule subject to notice-and-comment Administrative practice and Standards previously defined the
rulemaking requirements. An IRFA or procedure, Consumer protection, commercial based procedures to be used
FRFA is not required if the agency Penalties. for reducing time error to keep the
certifies that the rule will not have a system’s time within acceptable limits
significant economic impact on a Authority and Issuance of true time. NAESB’s latest version of
substantial number of small entities.13 its Business Practice Standards retires
The Bureau also is subject to certain For the reasons set forth above, the and eliminates its Manual Time Error
additional procedures under the RFA Bureau proposes to amend 12 CFR part Correction Business Practice Standards
involving the convening of a panel to 1083, as set forth below: to correspond with the removal of the
consult with small business Time Error Correction requirements of
representatives prior to proposing a rule PART 1083—CIVIL PENALTY the North American Electric Reliability
for which an IRFA is required.14 ADJUSTMENTS Corporation (NERC), which was
An IRFA is not required for this approved by the Commission in 2017.
proposal because if adopted it would ■ 1. The authority citation for part 1083 The Commission also proposes to
not have a significant economic impact continues to read as follows: incorporate by reference Standard
on a substantial number of small Authority: 12 U.S.C. 2609(d); 12 U.S.C. WEQ–000 (Version 003.2), which
entities. If adopted as proposed, the rule 5113(d)(2); 12 U.S.C. 5565(c); 15 U.S.C. eliminates the definitions of ‘‘Time
simply specifies that increased penalty 1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461 Error’’ and ‘‘Time Error Correction’’ as
amounts apply only to violations that note. well as making unrelated minor
occurred on or after November 2, 2015, corrections.
rather than also to violations that ■ 2. Section 1083.1(b) is revised to read
occurred prior to November 2, 2015. DATES: Comments are due November 13,
as follows:
Because it would limit the civil 2018.
penalties covered persons may pay, the § 1083.1 Adjustments of civil penalty ADDRESSES: Comments, identified by
amounts. Docket No. RM05–5–026, may be filed
9 Public Law 101–410, 104 Stat. 890. * * * * * in the following ways:
khammond on DSK30JT082PROD with PROPOSAL

10 Public Law 104–134, section 31001(s)(1), 110 • Electronic Filing through http://
Stat. 1321, 1321–373.
(b) The adjustments in paragraph (a) www.ferc.gov. Documents created
11 Public Law 114–74, section 701, 129 Stat. 584, of this section shall apply to civil electronically using word processing
599. penalties assessed after January 15, software should be filed in native
12 The Administrative Procedure Act generally
2019, whose associated violations applications or print-to-PDF format and
requires an agency to publish a rule at least 30 days
before its effective date. See 5 U.S.C. 553(d).
occurred on or after November 2, 2015. not in a scanned format.
13 See 5 U.S.C. 601 et seq. • Mail/Hand Delivery: Those unable
14 See 5 U.S.C. 609. 15 44 U.S.C. 3501 et seq. to file electronically may mail or hand-

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Document Created: 2018-10-13 10:07:54
Document Modified: 2018-10-13 10:07:54

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		Proposed Rules
Action		Proposed rule with request for public comment.
Dates		Comments must be received on or before November 13, 2018.
Contact		Monique Chenault, Paralegal Specialist or Shelley Thompson, Counsel, Office of Regulations, at (202) 435-7700 or https://reginquiries.consumerfinance.gov. If you require this document in an alternative electronic format, please contact [email protected]
FR Citation		83 FR 51653
CFR Associated		Administrative Practice and Procedure; Consumer Protection and Penalties