Federal Register / Vol. 69, No. 184 / Thursday, September 23, 2004 / Rules and Regulations 56929

subject to a court or administrative 

order as discussed in § 890.301(g)(3) at 

the time he or she retired may not 

cancel or suspend his or her enrollment, 

change to self only, or change to a 

comprehensive medical plan that does 

not serve the area where his or her 

children live after retirement as long as 

the court or administrative order is still 

in effect and the annuitant has at least 

one child identified in the order who is 

still eligible under the FEHB Program, 

unless the annuitant provides 

documentation to the retirement system 

that he or she has other coverage for the 

child or children.

* * * * *

■ 5. In § 890.502 revise the second 

sentence in paragraph (b)(2) and revise 

paragraph (b)(4)(ii) to read as follows:

§ 890.502 Employee withholdings and 

contributions.

* * * * *

(b) * * *

(2) * * * Exception: An employee 

who is subject to a court or 

administrative order as discussed in 

§ 890.301(g)(3) may not elect to 

terminate his or her enrollment as long 

as the court/administrative order is still 

in effect and the employee has at least 

one child identified in the order who is 

still eligible under the FEHB Program, 

unless the employee provides 

documentation that he or she has other 

coverage for the child or children. * * *

* * * * *

(4) * * * 

(ii) If the employee is subject to a 

court or administrative order as 

discussed in § 890.301(g)(3), the 

coverage may not terminate. If the 

employee does not return the signed 

form, the coverage will continue and the 

employee will incur a debt to the 

Government as discussed in paragraphs 

(b)(2)(i) and (b)(2)(ii) of this section.

* * * * *

PART 892—FEDERAL FLEXIBLE 

BENEFITS PLAN: PRE-TAX PAYMENT 

OF HEALTH BENEFITS PREMIUMS

■ 6. The authority citation for part 892 

continues to read as follows:

Authority: 5 U.S.C. 8913; 26 U.S.C. 125.

■ 7. Revise § 892.207 to read as follows:

§ 892.207 Can I make changes to my FEHB 

enrollment while I am participating in 

premium conversion? 

(a) Subject to the exceptions described 

in paragraphs (b) and (c) of this section, 

you can make changes to your FEHB 

enrollment for the same reasons and 

with the same effective dates listed in 

§ 890.301 of this chapter. 

(b) However, if you are participating 

in premium conversion there are two 

exceptions: you must have a qualifying 

life event to change from self and family 

enrollment to self only enrollment or to 

drop FEHB coverage entirely. (See

§ 892.209 and § 892.210.) Your change 

in enrollment must be consistent with 

and correspond to your qualifying life 

event as described in § 892.101. These 

limitations apply only to changes you 

may wish to make outside open season. 

(c) If you are subject to a court or 

administrative order as discussed in 

§ 890.301(g)(3) of this chapter, your 

employing agency can limit a change to 

your enrollment as long as the court or 

administrative order is still in effect and 

you have at least one child identified in 

the order who is still eligible under the 

FEHB Program, unless you provide 

documentation to your agency that you 

have other coverage for your child or 

children. See also § 892.208 and 

§ 892.209.

■ 8. Add a new paragraph (c) to 

§ 892.208 to read as follows:

§ 892.208 Can I change my enrollment 

from self and family to self only at any 

time?

* * * * *

(c) If you are subject to a court or 

administrative order as discussed in 

§ 890.301(g)(3) of this chapter, you may 

not change your enrollment to self only 

as long as the court or administrative 

order is still in effect and you have at 

least one child identified in the order 

who is still eligible under the FEHB 

Program, unless you provide 

documentation to your agency that you 

have other coverage for your child or 

children. See also § 892.207 and 

§ 892.209.

■ 9. Revise paragraph (c) to § 892.209 to 

read as follows:

§ 892.209 Can I cancel FEHB coverage at 

any time?

* * * * *

(c) If you are subject to a court or 

administrative order as discussed in 

§ 890.301(g)(3) of this chapter, you may 

not cancel your coverage as long as the 

court or administrative order is still in 

effect and you have at least one child 

identified in the order who is still 

eligible under the FEHB Program, unless 

you provide documentation to your 

agency that you have other coverage for 

your child or children.

[FR Doc. 04–21304 Filed 9–22–04; 8:45 am] 

BILLING CODE 6325–39–P

FEDERAL RESERVE SYSTEM

12 CFR Part 263 

[Docket No. OP–1211] 

Rules of Practice for Hearings

AGENCY: Board of Governors of the 

Federal Reserve System.

ACTION: Final rule.

SUMMARY: The Board of Governors of the 

Federal Reserve System (the Board) is 

amending its rules of practice and 

procedure to adjust the maximum 

amount, as set by statute, of each civil 

money penalty (CMP) within its 

jurisdiction to account for inflation. 

This action is required under the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended by 

the Debt Collection Improvement Act of 

1996.

EFFECTIVE DATE: October 12, 2004.

FOR FURTHER INFORMATION CONTACT:

Katherine H. Wheatley, Assistant 

General Counsel (202/452–3779), or 

Katrina P. Sukduang, Senior Attorney 

(202/452–3351), Legal Division, Board 

of Governors of the Federal Reserve 

System, 20th and C Streets, NW., 

Washington, DC 20551. For users of 

Telecommunication Device for the Deaf 

(TDD) only, contact 202/263–4869.

SUPPLEMENTARY INFORMATION: The 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended by 

the Debt Collection Improvement Act of 

1996, 28 U.S.C. 2461 note (FCPIA Act), 

requires each Federal agency to adjust 

each CMP within its jurisdiction by a 

prescribed cost-of-living adjustment at 

least once every four years. This cost-ofliving adjustment is based on the 

formula described in section 5(b) of the 

FCPIA Act. The Board made its last 

adjustment in October 2000 (see 65 FR 

60583). 

The required cost-of-living adjustment 

formula is based on the difference 

between the Consumer Price Index (CPI) 

for June of the year preceding the 

adjustment (in this case, June 2003) and 

the CPI for June of the year when the 

CMP was last set or adjusted. To 

calculate the adjustment, the Board used 

the Department of Labor, Bureau of 

Labor Statistics—All Urban Consumers 

tables, in which the period 1982–84 was 

equal to 100, to get the CPI values. 

The calculations performed for the 

2004 adjustment consisted of three 

categories, depending on the year in 

which the penalty was last set or 

adjusted. For penalties that changed in 

2000, the relevant CPIs were June 2003 

(183.7) and June 2000 (172.4), resulting 

in a CPI increase of 6.6 percent. For 

56930 Federal Register / Vol. 69, No. 184 / Thursday, September 23, 2004 / Rules and Regulations 

penalties that were last changed in 

1996, the relevant CPIs were June 2003 

(183.7) and June 1996 (156.7), resulting 

in a CPI increase of 17.2 percent. 

Finally, for the one penalty that had not 

changed since its establishment in 1994, 

the relevant CPIs were June 2003 (183.7) 

and June 1994 (148.0), resulting in a CPI 

increase of 24.1 percent. 

Section 5 of the FCPIA Act provides 

that the adjustment amount must be 

rounded before adding it to the existing 

penalty amount. The rounding 

provision depends on the size of the 

penalty being adjusted. For example, if 

the penalty is greater than $100 but less 

than or equal to $1,000, the increase is 

rounded to the nearest $100; if it is 

greater than $1,000 but less than or 

equal to $10,000, the increase is 

rounded to the nearest $1,000. Because 

of this rounding rule, five penalty 

amounts are not changing at this time. 

For example, the penalty under 12 

U.S.C. 3909(d) prior to the 2004 

adjustment was $1,100. As this penalty 

was last changed in 1996, the 17.2 

percent adjustment would be $189. 

Rounding that increase to the nearest 

$1,000 results in an increase of $0. The 

penalties that are not adjusted at this 

time because of this rounding formula 

will be adjusted at the next adjustment 

cycle to take account of the entire 

period between the time of their last 

adjustment (either 1996 or 2000) and the 

next adjustment date. These unadjusted 

penalties include the inadvertently late 

or misleading reports under 12 U.S.C. 

324; 12 U.S.C. 1832(c); Tier I penalty of 

12 U.S.C. 1847(d), 3110(c); 12 U.S.C. 

334, 374a, 1884; and 12 U.S.C. 3909(d). 

Because the statute also prohibits 

initial increases that exceed 10 percent, 

the penalty for 42 U.S.C. 4012a(f)(5) will 

increase to only $385 in 2004. This 

penalty was initially set at $350 in 1994, 

and did not change in either the 1996 

or 2000 adjustments. Accordingly, the 

24.1 percent CPI increase from 1994 

results in $84, which is rounded to $100 

pursuant to the rounding rules. As that 

increase would exceed 10 percent, the 

penalty was adjusted to $385. 

In accordance with section 6 of the 

FCPIA Act, the increased penalties set 

forth in this amendment apply only to 

violations that occur after the date the 

increase takes effect. 

Public Comment Not Required 

This rule is not subject to the 

provisions of 5 U.S.C. 553 requiring 

notice, public participation, and 

deferred effective date. The FCPIA Act 

provides Federal agencies with no 

discretion in the adjustment of CMPs to 

the rate of inflation, and it also requires 

that adjustments be made at least every 

four years. Moreover, this regulation is 

ministerial and technical. For these 

reasons, the Board finds good cause to 

determine that public notice and 

comment for this new regulation is 

unnecessary, impractical, and contrary 

to the public interest, pursuant to the 

Administrative Procedure Act (APA), 5 

U.S.C. 553(b)(3)(B). These same reasons 

also provide the Board with good cause 

to adopt an effective date for this 

regulation that is less than 30 days after 

the date of publication in the Federal 

Register, pursuant to the APA, 5 U.S.C. 

553(d). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act applies 

only to rules for which an agency 

publishes a general notice of proposed 

rulemaking pursuant to 5 U.S.C. 553(b). 

See 5 U.S.C. 601(2). Because the Board 

has determined for good cause that the 

APA does not require public notice and 

comment on this final rule, we are not 

publishing a general notice of proposed 

rulemaking. Thus, the Regulatory 

Flexibility Act does not apply to this 

final rule. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. Ch. 35; 

5 CFR part 1320 Appendix A.1), the 

Board reviewed the final rule under the 

authority delegated to the Board by the 

Office of Management and Budget. No 

collections of information pursuant to 

the Paperwork Reduction Act are 

contained in the final rule.

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 of Governors 

amends 12 CFR part 263 as follows:

PART 263—RULES OF PRACTICE FOR 

HEARINGS

■ 1. The authority citation for part 263 

continues to read as follows:

Authority: 5 U.S.C. 504; 12 U.S.C. 248, 

324, 504, 505, 1817(j), 1818, 1828(c), 1831o, 

1831p-1, 1847(b), 1847(d), 1884(b), 

1972(2)(F), 3105, 3107, 3108, 3907, 3909; 15 

U.S.C. 21, 78o-4, 78o-5, 78u-2; and 28 U.S.C. 

2461 note.

■ 2. Section 263.65 is revised to read as 

follows:

263.65 Civil penalty inflation adjustments 

(a) Inflation adjustments. In 

accordance with the Federal Civil 

Penalties Inflation Adjustment Act of 

1990 (28 U.S.C. 2461 note), the Board 

has set forth in paragraph (b) of this 

section adjusted maximum penalty 

amounts for each civil money penalty 

provided by law within its jurisdiction. 

The adjusted civil penalty amounts 

provided in paragraph (b) of this section 

replace only the amounts published in 

the statutes authorizing the assessment 

of penalties and the previously-adjusted 

amounts adopted as of October 12, 2000 

and October 24, 1996. The authorizing 

statutes contain the complete provisions 

under which the Board may seek a civil 

money penalty. The increased penalty 

amounts apply only to violations 

occurring after the effective date of this 

rule. 

(b) Maximum civil money penalties.

The maximum civil money penalties as 

set forth in the referenced statutory 

sections are as follows:

(1) 12 U.S.C. 324: 

(i) Inadvertently late or misleading 

reports, inter alia—$2,200. 

(ii) Other late or misleading reports, 

inter alia—$27,000. 

(iii) Knowingly or recklessly false or 

misleading reports, inter alia—

$1,250,000. 

(2) 12 U.S.C. 504, 505, 1817(j)(16), 

1818(i)(2) and 1972(2)(F): 

(i) First tier—$6,500. 

(ii) Second tier—$32,500. 

(iii) Third tier—$1,250,000. 

(3) 12 U.S.C. 1832(c)—$1,100. 

(4) 12 U.S.C. 1847(b), 3110(a)—$32,500. 

(5) 12 U.S.C. 1847(d), 3110(c): 

(i) First tier—$2,200. 

(ii) Second tier—$27,000. 

(iii) Third tier—$1,250,000. 

(6) 12 U.S.C. 334, 374a, 1884—$110. 

(7) 12 U.S.C. 3909(d)—$1,100. 

(8) 15 U.S.C. 78u–2: 

(i) 15 U.S.C. 78u-2(b)(1)—$6,500 for a 

natural person and $65,000 for any 

other person. 

(ii) 15 U.S.C. 78u-2(b)(2)—$65,000 for 

a natural person and $325,000 for 

any other person. 

(iii) 15 U.S.C. 78u-2(b)(3)—$130,000 

for a natural person and $625,000 

for any other person. 

(9) 42 U.S.C. 4012a(f)(5): 

(i) For each violation—$385. 

(ii) For the total amount of penalties 

assessed under 42 U.S.C 4012a(f)(5) 

against an institution or enterprise 

during any calendar year—

$125,000.

Dated: September 20, 2004.

By order of the Board of Governors of the 

Federal Reserve System. 

Jennifer J. Johnson, 

Secretary of the Board.

[FR Doc. 04–21362 Filed 9–22–04; 8:45 am] 

BILLING CODE 6210–01–P