77250 Federal Register / Vol. 65, No. 238 / Monday, December 11, 2000 / Rules and Regulations

1 28 U.S.C. 2461 note.

2See 62 FR 3199, January 22, 1997.

3See 28 U.S.C. 2461 note.

4See id. The statute’s rounding rules require that

an increase be rounded to the nearest multiple of:

$10 in the case of penalties less than or equal to

$100; $100 in the case of penalties greater than $100

but less than or equal to $1,000; $1,000 in the case

of penalties greater than $1,000 but less than or

equal to $10,000; $5,000 in the case of penalties

greater than $10,000 but less than or equal to

$100,000; $10,000 in the case of penalties greater

than $100,000 but less than or equal to $200,000;

and $25,000 in the case of penalties greater than

$200,000.

5The Department of Labor (DOL) computes the

CPI–U using two different base time periods, 1967

and 1982–1984, and the Inflation Adjustment Act

does not specify which of these base periods should

be used to calculate the inflation adjustment. The

OCC has used the DOL’s CPI–U with 1982–84 as the

base period because it reflects the most current

method of computing the CPI–U.

6According to the statute, the inflation

adjustment is computed by comparing the CPI–U

for June of the year in which the CMPs were ‘‘last

set or adjusted’’ with CPI–U for June ‘‘of the

calendar year preceding [sic] the adjustment.’’ 28

U.S.C. 2461 note. Therefore, a different formula is

required for three CMPs that did not increase when

the OCC made its initial inflation adjustment in

1997. These CMPs—the $2,000 penalties under 12

U.S.C. 164 and 12 U.S.C. 3110(c) and the 4350

[penalty under 42 U.S.C. 4012a(f)(5)—did not

increase as a result to application of the rounding

rules. For those penalties that were not adjusted in

1997, we have used the year in which the CMP was

last set by enactment. See footnotes a and b to the

table.

uniformed service who is on duty

outside the contiguous states of the

United States.

* * * * *

(l) * * *

(2) At certification, the State or local

agency must require each applicant to

present proof of residency (i.e., location

or address where the applicant routinely

lives or spends the night) and proof of

identity. The State or local agency must

also check the identity of participants,

or in the case of infants or children, the

identity of the parent or guardian, or

proxies when issuing food or food

instruments. The State agency may

authorize the certification of applicants

when no proof of residency or identity

exists (such as when an applicant or an

applicant’s parent is a victim of theft,

loss, or disaster, a homeless individual,

or a migrant farmworker). In these cases,

the State or local agency must require

the applicant to confirm in writing his/

her residency or identity. Further, an

individual residing in a remote Indian

or Native village or an individual served

by an Indian tribal organization and

residing on a reservation or pueblo may

establish proof of residency by

providing the State agency their mailing

address and the name of the remote

Indian or Native village.

* * * * *

Dated: November 30, 2000.

George A. Braley,

Acting Administrator, Food and Nutrition

Service.

[FR Doc. 00–31452 Filed 12–8–00; 8:45 am]

BILLING CODE 3410–30–U

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the

Currency

12 CFR Part 19

[Docket No. 00–33]

RIN 1557–AB88

Rules of Practice and Procedure; Civil

Money Penalty Inflation Adjustments

AGENCY: Office of the Comptroller of the

Currency, Treasury.

ACTION: Final rule.

SUMMARY: The Office of the Comptroller

of the Currency (OCC) 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 (Inflation

Adjustment Act), as amended by the

Debt Collection Improvement Act of

1996.

DATES: This rule is effective December

11, 2000.

FOR FURTHER INFORMATION CONTACT: Jean

Campbell, Attorney, or Mark

Tenhundfeld, Assistant Director,

Legislative and Regulatory Activities

Division, (202) 874–5090, Office of the

Comptroller of the Currency, 250 E

Street, SW., Washington, DC 20219.

SUPPLEMENTARY INFORMATION:

Background

The Inflation Adjustment Act 1

requires the OCC, as well as other

Federal agencies with CMP authority, to

publish regulations to adjust each CMP

authorized by a law that the agency has

jurisdiction to administer. The purpose

of these adjustments is to maintain the

deterrent effect of CMPs and to promote

compliance with the law. The Inflation

Adjustment Act requires adjustments to

be made at least once every four years

following the initial adjustment. The

OCC’s prior adjustment to each CMP

was published in the Federal Register

on January 22, 1997, 2 and became

effective that same day.

The Inflation Adjustment Act requires

that the adjustment reflect the

percentage increase in the Consumer

Price Index between June of the

calendar year preceding the adjustment

and June of the calendar year in which

the amount was last set or adjusted. The

Inflation Adjustment Act defines the

Consumer Price Index as the Consumer

Price Index for all urban consumers

published by the Department of Labor

(‘‘CPI–U’’).3 In addition, the Inflation

Adjustment Act provides rules for

rounding off increases,4 and provides

that any increase in a CMP applies only

to violations that occur after the date of

the adjustment.

Description of the Rule

This final rule adjusts the amount for

each type of CMP that the OCC has

jurisdiction to impose in accordance

with these statutory requirements. It

does so by revising the table contained

in section 19.240 of our regulations. The

table identifies the statutes that provide

the OCC with CMP authority, describes

the different tiers of penalties provided

in each statute (as applicable), and sets

out the inflation-adjusted maximum

penalty that the OCC may impose

pursuant to each statutory provision.

The inflation adjustment for the CMPs

was calculated by comparing the CPI–U

for June 1996 (156.7) with the CPI–U for

June 1999 (166.2),5 resulting in an

inflation adjustment of 6.1 percent.6 The

amount of each CMP was multiplied by

the appropriate percentage and the

resulting dollar amount was rounded up

or down according to the rounding

requirements of the statute. In some

cases, rounding resulted in no

adjustment to the CMP. The table below

shows both the present CMPs and

inflation adjusted CMPs. The table as

published in the rule includes only the

CMPs as of the effective date of this

rule.

Federal Register / Vol. 65, No. 238 / Monday, December 11, 2000 / Rules and Regulations 77251

7 5 U.S.C. 553(b)(B).

8See 5 U.S.C. 553(d)(APA), 12 U.S.C. 4802

(RCDRIA).

9The Inflation Adjustment Act required the

initial adjustment to be made within 180 days

following enactment of the statute, that is, by

October 23, 1996.

10See 5 U.S.C. 601(2).

U.S. Code citation Description Maximum

penalty

Amount of

increase

(6.1 percent)

Amount of

increase

after rounding

Adjusted

maximum

penalty

12 U.S.C. 93(b), 504, 1817(j)(16),

1818(i)(2), and 1972(2)(F).

Tier 1 ........................................ 5,500 336 ........................ 5,500

Tier 2 ........................................ 27,500 1,678 ........................ 27,500

Tier 3 ........................................ 1,100,000 67,100 75,000 1,175,000

12 U.S.C. 164 and 3110(c) ....................... Tier 1 ........................................ 2,000 a 678 200 2,200

Tier 2 ........................................ 22,000 1,342 ........................ 22,000

Tier 3 ........................................ 1,100,000 67,100 75,000 1,175,000

12 U.S.C. 1832(c) and 3909(d)(1) ............ .................................................. 1,100 67 ........................ 1,100

12 U.S.C. 1884 .......................................... .................................................. 110 7 ........................ 110

12 U.S.C. 3110(a) ..................................... .................................................. 27,500 1,678 ........................ 27,500

15 U.S.C. 78u–2(b) ................................... Tier 1 (natural person) ............. 5,500 336 ........................ 5,500

Tier 1 (other person) ................ 55,000 3,355 5,000 60,000

Tier 2 (natural person) ............. 55,000 3,355 5,000 60,000

Tier 2 (other person) ................ 275,000 16,775 25,000 300,000

Tier 3 (natural person) ............. 110,000 6,710 10,000 120,000

Tier 3 (other person) ................ 550,000 33,550 25,000 575,000

42 U.S.C. 4012a(f)(5) ................................ Per violation ............................. 350 b 43 ........................ 350

Per year ................................... 105,000 6,405 10,000 115,000

aThis penalty was enacted as part of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Pub. L. 101–73, 103 Stat. 183

(August 9, 1989). The amount did not change when the OCC adjusted the CMPs for inflation in 1997. Therefore, the percentage increase was

calculated by comparing the CPI–U for June 1989 (124.1) to the CPI–U for June 1999 (166.2), resulting in an inflation adjustment of 33.9 percent. The corresponding dollar amount is $678, which would be rounded to an increase of $1,000. However, according to the Inflation Adjustment Act, the initial adjustment of a CMP may not exceed 10 percent of such penalty. Thus, the amount of the increase is capped at $200. bThis penalty was enacted in the Riegle Community Development and Regulatory Improvement Act of 1994 (RCDRIA). Pub. L. 103–325, 108

Stat. 2160 (September 23, 1994). The amount did not change when the OCC adjusted the CMPs for inflation in 1997. Therefore, the percentage

increase was calculated by comparing the CPI–U for June 1994 to the CPI–U for June 1999, resulting in an increase of 12.3 percent.

Section 19.241 states that the

adjustments made in section 19.240

apply only to violations that occur after

December 11, 2000.

The OCC intends to readjust these

amounts in the year 2004 and every four

years thereafter, assuming there are no

further changes to the mandate imposed

by the Inflation Adjustment Act.

Public Notice and Comment and

Delayed Effective Date Not Required

Under the Administrative Procedure

Act (APA), an agency may dispense

with public notice and an opportunity

for comment if the agency finds, for

good cause, that these procedural

requirements are ‘‘impracticable,

unnecessary, or contrary to the public

interest.’’ 7 As described earlier in the

Supplementary Information, the Debt

Collection Act provides the OCC no

discretion in calculating the amount of

the civil penalty adjustment. The OCC

is, accordingly, unable to vary the

amount of the adjustment to reflect any

views or suggestions provided by

commenters. In that case, notice and

comment are unnecessary, and there is,

in the opinion of the OCC, good cause

to dispense with those procedures.

Both the APA and the RCDRIA

require that the effective date of the

OCC’s regulations generally be delayed.8

Both statutes contain exceptions if the

agency finds good cause to dispense

with the delayed effective date. The

amendment adopted in this regulation

does not substantively affect the rights

or obligations of national banks, nor

does it impose any new compliance

requirements upon them. It merely

adjusts the maximum amounts of civil

penalties according to a predetermined

formula. Moreover, the timing of the

adjustment is set by operation of the law

that requires the OCC to publish

regulations every four years following

the initial adjustment.9 Under these

circumstances, the OCC finds good

cause to dispense with the APA and

RCDRIA delayed effective date

provisions. Accordingly, the adjustment

to the OCC’s civil penalty schedule is

effective immediately upon publication

in the Federal Register.

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).10 Because the OCC 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.

Executive Order 12866

The OCC has determined that this

final rule is not a significant regulatory

action under Executive Order 12866.

Unfunded Mandates Reform Act of

1995

The OCC has determined that this

final rule will not result in expenditures

by state, local, and tribal governments,

or by the private sector, of $100 million

or more in any one year. Accordingly,

a budgetary impact statement is not

required under section 202 of the

Unfunded Mandates Reform Act of

1995.

List of Subjects in 12 CFR Part 19

Administrative practice and

procedure, Crime, Equal access to

justice, Investigations, National banks,

Penalties, Securities.

Authority and Issuance

For the reasons set out in the

preamble, part 19 of chapter I of title 12

of the Code of Federal Regulations is

amended as follows:

PART 19—RULES OF PRACTICE AND

PROCEDURE

1. The authority citation for part 19 is

revised to read as follows:

Authority: 5 U.S.C. 504, 554–557; 12

U.S.C. 93a, 93(b), 164, 505, 1817, 1818, 1820,

1831o, 1972, 3102, 3108(a), 3909 and 4717;

15 U.S.C. 78(h) and (i), 78o–4(c), 78o–5, 78q–

1, 78u, 78u–2, 78u–3, and 78w; 28 U.S.C.

77252 Federal Register / Vol. 65, No. 238 / Monday, December 11, 2000 / Rules and Regulations

2461 note; 31 U.S.C. 330 and 5321; and 42

U.S.C. 4012a.

2. Subpart O is revised to read as

follows:

Subpart O—Civil Money Penalty

Inflation Adjustments

§ 19.240 Inflation adjustments.

The maximum amount of each civil

money penalty within the OCC’s

jurisdiction is adjusted in accordance

with the Federal Civil Penalties

Inflation Adjustment Act of 1990 (28

U.S.C. 2461 note) as follows:

U.S. Code citation Description

Adjusted

maximum

penalty

12 U.S.C. 93(b), 504, 1817(j)(16), 1818(i)(2), and 1972(2)(F) ..... Tier 1 ............................................................................................

Tier 2 ............................................................................................

Tier 3 ............................................................................................

5,500

27,500

1,175,000

12 U.S.C. 164 and 3110(c) ........................................................... Tier 1 ............................................................................................

Tier 2 ............................................................................................

Tier 3 ............................................................................................

2,200

22,000

1,175,000

12 U.S.C. 1832(c) and 3909(d)(1) ................................................ ...................................................................................................... 1,100

12 U.S.C. 1884 ............................................................................. ...................................................................................................... 110

12 U.S.C. 3110(a) ......................................................................... ...................................................................................................... 27,500

15 U.S.C. 78u–2(b) ....................................................................... Tier 1 (natural person) .................................................................

Tier 1 (other person) ....................................................................

Tier 2 (natural person) .................................................................

Tier 2 (other person) ....................................................................

Tier 3 (natural person) .................................................................

Tier 3 (other person) ....................................................................

5,500

60,000

60,000

300,000

120,000

575,000

42 U.S.C. 4012a(f)(5) .................................................................... Per violation .................................................................................

Per year .......................................................................................

350

115,000

§ 19.241 Applicability.

The adjustments in § 19.240 apply to

violations that occur after December 11,

2000.

Dated: December 1, 2000.

John D. Hawke, Jr.,

Comptroller of the Currency.

[FR Doc. 00–31165 Filed 12–8–00; 8:45 am]

BILLING CODE 4810–33–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. NM175; Special Conditions No.

25–169–SC]

Special Conditions: Boeing Model 777–

200 Series Airplanes; Overhead Crew

Rest Compartment

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Final special conditions.

SUMMARY: These special conditions are

issued for the Boeing Model 777–200

series airplanes, modified by Flight

Structures, Inc. The modification

consists of the installation of a crew rest

compartment located in the vicinity of

door three in the overhead area of the

passenger compartment. The crew rest

compartment is to be certified for a

maximum of ten occupants for use only

during flight. The applicable

airworthiness regulations do not contain

adequate or appropriate safety standards

for this design feature. These special

conditions contain the additional safety

standards that the Administrator

considers necessary to establish a level

of safety equivalent to that established

by the existing airworthiness standards.

EFFECTIVE DATE: December 1, 2000.

FOR FURTHER INFORMATION CONTACT:

Jayson Claar, FAA, Transport Standards

Staff, ANM–115, Transport Airplane

Directorate, 1601 Lind Avenue SW.,

Renton, Washington, 98055–4056;

telephone (425) 227–2194; facsimile

(425) 227–1320.

SUPPLEMENTARY INFORMATION:

Background

On June 25, 1999, Flight Structures,

Inc., 4407 172 Street NE, Arlington,

Washington, 98223, applied for a

supplemental type certificate to install

an overhead crew rest compartment in

Boeing Model 777–200 series airplanes.

The Boeing Model 777–200 series

airplane is a large twin-jet engine

transport airplane with four pairs of

Type A exits, a passenger capacity of

440, and a range of 5000 miles. The

overhead crew rest compartment is a

single compartment located above the

main passenger compartment in the

vicinity of door three. The crew rest

compartment will contain eight private

bunks and two seats, and is to be

certified for a maximum of ten

occupants. A stairwell entering from the

door three aisle is the main entry. Two

escape hatches are located on either side

of the entryway door. These special

conditions are written for an overhead

crew rest compartment that will be

occupied only in flight, not during taxi,

takeoff, or landing.

Type Certification Basis

Under the provisions of § 21.101,

Flight Structures, Inc., must show that

the Boeing Model 777–200 series

airplane, as changed, continues to meet

the applicable provisions of the

regulations incorporated by reference in

Type Certificate No. T00001SE or the

applicable regulations in effect on the

date of application for the change. The

regulations incorporated by reference in

the type certificate are commonly

referred to as the ‘‘original type

certification basis.’’ The regulations

incorporated by reference in Type

Certificate No. T00001SE for the Boeing

Model 777–200 series airplanes include

14 CFR part 25, as amended by

Amendments 25–1 through 25–82. The

U.S. type certification basis for the

Boeing Model 777–200 series airplanes

is established in accordance with 14

CFR 21.29 and 21.17 and the type

certification application date. The type

certification basis is listed in Type

Certificate Data Sheet No. T00001SE.

If the Administrator finds that the

applicable airworthiness regulations

(i.e., part 25) do not contain adequate or

appropriate safety standards for the

Model 777–200 series airplanes because

of a novel or unusual design feature,

special conditions are prescribed under

the provisions of § 21.16.

In addition to the applicable

airworthiness regulations and special

conditions, Boeing Model 777–200