This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

2029 

Vol. 83, No. 10 

Tuesday, January 16, 2018 

1Public Law 104–134, 31001(s), 110 Stat. 1321– 

373 (Apr. 26, 1996). The law is codified at 28 U.S.C. 

2461 note. 

2Public Law 101–410, 104 Stat. 890 (Oct. 5, 

1990), codified at 28 U.S.C. 2461 note. 

3Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015). 

4 129 Stat. 599. 

5Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, 

599 (Nov. 2, 2015). 

6 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov. 

7, 2016). 

7Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, 

599 (Nov. 2, 2015). 

8 82 FR 7640 (Jan. 23, 2017). 

9 82 FR 29710 (June 30, 2017). 

10Public Law 114–74, Sec. 701(b)(1), 129 Stat. 

584, 599 (Nov. 2, 2015). 

11This index is published by the Department of 

Labor, Bureau of Labor Statistics, and is available 

at its website: http://www.bls.gov/cpi/. 

12Public Law 114–74, Sec. 701(b)(1)(2)(B), 129 

Stat. 584, 600 (Nov. 2, 2015). 

13Public Law 114–74, Sec. 701(b)(1), 129 Stat. 

584, 600 (Nov. 2, 2015). 

14Public Law 114–74, Sec. 701(b)(4), 129 Stat. 

584, 601 (Nov. 2, 2015). 

15 Id.; OMB, Implementation of Penalty Inflation 

Adjustments for 2018, Pursuant to the Federal Civil 

Penalties Inflation Adjustment Act Improvements 

Act of 2015, M–18–03 (Dec. 15, 2017), available at 

https://www.whitehouse.gov/wp-content/uploads/ 

2017/11/M-18-03.pdf (noting that the applicable 

2017 CMP-adjustment multiplier is 1.02041). 

16 Id. 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 747 

RIN 3133–AE83 

Civil Monetary Penalty Inflation 

Adjustment 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule. 

SUMMARY: The NCUA Board (Board) is 

amending its regulations to adjust the 

maximum amount of each civil 

monetary penalty (CMP) within its 

jurisdiction to account for inflation. 

This action, including the amount of the 

adjustments, is required under the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended by 

the Debt Collection Improvement Act of 

1996 and the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015. 

DATES: This final rule is effective 

January 15, 2018. 

FOR FURTHER INFORMATION CONTACT: Ian 

Marenna, Senior Trial Attorney, at 1775 

Duke Street, Alexandria, VA 22314, or 

telephone: (703) 518–6540. 

SUPPLEMENTARY INFORMATION: 

I. Legal Background 

II. Calculation of Adjustments 

III. Regulatory Procedures 

I. Legal Background 

A. Statutory Requirements and OMB 

Guidance 

The Debt Collection Improvement Act 

of 1996 1 (DCIA) amended the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990 2 (FCPIA Act) to require every 

federal agency to enact regulations that 

adjust each CMP provided by law under 

its jurisdiction by the rate of inflation at 

least once every four years. 

In November 2015, Congress further 

amended the CMP inflation 

requirements in the Bipartisan Budget 

Act of 2015,3 which contains the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (the 2015 amendments).4 This 

legislation provided for an initial 

‘‘catch-up’’ adjustment of CMPs in 2016, 

followed by annual adjustments. The 

catch-up adjustment re-set CMP 

maximum amounts by setting aside the 

inflation adjustments that agencies 

made in prior years and instead 

calculated inflation with reference to 

the year when each CMP was enacted or 

last modified by Congress. Agencies 

were required to publish their catch-up 

adjustments in an interim final rule by 

July 1, 2016 and make them effective by 

August 1, 2016.5 The NCUA complied 

with these requirements in a June 2016 

interim final rule, followed by an 

October 2016 final rule to confirm the 

adjustments as final.6

The 2015 amendments also specified 

how agencies must conduct annual 

inflation adjustments after the 2016 

catch-up adjustment. Following the 

catch-up adjustment, agencies must 

make the required adjustments and 

publish them in the Federal Register by 

January 15 each year.7 The NCUA 

issued an interim final rule on January 

6, 2017,8 followed by a final rule issued 

on June 23, 2017.9 This final rule will 

satisfy the agency’s requirement for the 

2018 annual adjustments. 

The statute provides that the 

adjustments shall be made 

notwithstanding the section of the 

Administrative Procedure Act (APA) 

that requires prior notice and public 

comment for agency rulemaking.10 The 

2015 amendments also specify that each 

CMP maximum must be increased by 

the percentage by which the consumer 

price index for urban consumers (CPI– 

U) 11 for October of the year 

immediately preceding the year the 

adjustment is made exceeds the CPI–U 

for October of the prior year.12 For 

example, for the adjustment made in 

2018, agencies must compare the 

October 2016 and 2017 CPI–U figures. 

The 2015 amendments also provide 

that agencies may forgo the required 

annual adjustments in certain 

circumstances. Specifically, in a 

subsection titled ‘‘Other Adjustments 

Made,’’ the statute provides that an 

agency is not required to make an 

annual adjustment to a CMP if it has 

been increased by a greater amount than 

the contemplated annual adjustment in 

the preceding 12 months.13 When these 

criteria are met, the agency has 

discretion not to make the adjustments 

otherwise required by the statute. 

In addition, the 2015 amendments 

directed the Office of Management and 

Budget (OMB) to issue guidance to 

agencies on implementing the inflation 

adjustments.14 OMB is required to issue 

its guidance each December and did so 

on December 15, 2017.15 This OMB 

guidance for the 2018 adjustments 

includes an inflationary multiplier 

(1.02041) to apply to each current CMP 

maximum amount to determine the 

adjusted maximum. The guidance also 

addresses rulemaking procedures and 

agency reporting and oversight 

requirements for CMPs.16

The next section sets forth the Board’s 

calculation of the adjustments for 2018, 

in accordance with the foregoing 

requirements. 

B. Application to the 2018 Adjustments 

This section applies the statutory 

requirements and OMB’s guidance to 

the NCUA’s CMPs. 

As explained above, the 2015 

amendments require the NCUA to adjust 


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2030 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 

17The table uses condensed descriptions of CMP 

tiers. Refer to the U.S. Code citations for complete 

descriptions. 

the maximum amounts of its CMPs by 

the percentage by which the October 

2017 CPI–U (246.663) exceeds the 

October 2016 CPI–U (241.729). The 

percentage change is 2.041. This 

percentage increase can be expressed as 

an inflation multiplier (the quotient of 

the October 2017 figure divided by the 

October 2016 figure). Accordingly, each 

CMP maximum amount should be 

multiplied by 1.02041 to determine the 

adjusted maximum amount. OMB’s 

guidance identifies the same multiplier. 

The Board has considered the 

exception in the 2015 amendments for 

adjustments made in the preceding 12 

months, discussed above, and has 

determined that it does not apply. All of 

the adjustments calculated below are 

equal to or greater than the adjustments 

made in January 2017 for each CMP. 

Accordingly, the exception for greater 

adjustments in the preceding 12 months 

does not apply. Thus, the Board lacks 

discretion to decline to make the 

adjustments calculated below. 

The table below presents the 

adjustment calculations. The current 

maximums are found at 12 CFR 

747.1001, as adjusted in January 2017. 

This amount is multiplied by the 

inflation multiplier to calculate the new 

maximum in the far right column. Only 

these adjusted maximum amounts, and 

not the calculations, will be codified at 

12 CFR 747.1001 under this final rule. 

The adjusted amounts will be effective 

January 15, 2018, and can be applied to 

violations that occurred on or after 

November 2, 2015, the date the 2015 

amendments were enacted. The table to 

be published in the CFR adds a separate 

row for tier 3 penalties against insured 

credit unions under 12 U.S.C. 1786(k). 

This is a format change to conform the 

table in the CFR with the table below, 

which lists the tier 3 penalties against 

credit unions and natural persons 

separately, following the structure of the 

statute. 

TABLE—CALCULATION OF MAXIMUM CMP ADJUSTMENTS

Citation Description/tier 17 Current maximum ($) Multiplier 

Adjusted maximum ($) 

(current maximum × 

multiplier, rounded to 

nearest dollar) 

12 U.S.C. 1782(a)(3) ..... Inadvertent failure to submit a report or the inadvertent submission of a false or misleading 

report.

3,849 ............................ 1.02041 3,928. 

12 U.S.C. 1782(a)(3) ..... Non-inadvertent failure to submit a report or the 

non-inadvertent submission of a false or misleading report.

38,492 .......................... 1.02041 39,278. 

12 U.S.C. 1782(a)(3) ..... Failure to submit a report or the submission of 

a false or misleading report done knowingly 

or with reckless disregard.

Lesser of 1,924,589 or 

1% of total CU assets.

1.02041 Lesser of 1,963,870 or 

1% of total CU assets. 

12 U.S.C. 1782(d)(2)(A) Tier 1 CMP for inadvertent failure to submit certified statement of insured shares and 

charges due to NCUSIF, or inadvertent submission of false or misleading statement.

3,519 ............................ 1.02041 3,591. 

12 U.S.C. 1782(d)(2)(B) Tier 2 CMP for non-inadvertent failure to submit 

certified statement or submission of false or 

misleading statement.

35,186 .......................... 1.02041 35,904. 

12 U.S.C. 1782(d)(2)(C) Tier 3 CMP for failure to submit a certified 

statement or the submission of a false or 

misleading statement done knowingly or with 

reckless disregard.

Lesser of 1,759,309 or 

1% of total CU assets.

1.02041 Lesser of 1,795,216 or 

1% of total CU assets. 

12 U.S.C. 1785(a)(3) ..... Non-compliance with insurance logo requirements.120 ............................... 1.02041 122. 

12 U.S.C. 1785(e)(3) ..... Non-compliance with NCUA security requirements.279 ............................... 1.02041 285. 

12 U.S.C. 1786(k)(2)(A) Tier 1 CMP for violations of law, regulation, and 

other orders or agreements.

9,623 ............................ 1.02041 9,819. 

12 U.S.C. 1786(k)(2)(B) Tier 2 CMP for violations of law, regulation, and 

other orders or agreements and for recklessly 

engaging in unsafe or unsound practices or 

breaches of fiduciary duty.

48,114 .......................... 1.02041 49,096. 

12 U.S.C. 1786(k)(2)(C) Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (natural person).1,924,589 ..................... 1.02041 1,963,870. 

12 U.S.C. 1786(k)(2)(C) Tier 3 (same) (CU) ............................................. Lesser of 1,924,589 or 

1% of total CU assets.

1.02041 Lesser of 1,963,870 or 

1% of total CU assets. 

12 U.S.C. 

1786(w)(5)(A)(ii).

Non-compliance with senior examiner post-employment restrictions.316,566 ........................ 1.02041 323,027. 

15 U.S.C. 1639e(k) ....... Non-compliance with appraisal independence 

standards (first violation).

11,053 .......................... 1.02041 11,279. 

15 U.S.C. 1639e(k) ....... Subsequent violations of the same .................... 22,105 .......................... 1.02041 22,556. 

42 U.S.C. 4012a(f)(5) .... Non-compliance with flood insurance requirements.2,090 ............................ 1.02041 2,133. 


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18Public Law 114–74, Sec. 701(b)(1), 129 Stat. 

584, 599 (Nov. 2, 2015). 

19See 5 U.S.C. 559; Asiana Airlines v. Fed. 

Aviation Admin., 134 F.3d 393, 396–99 (D.C. Cir. 

1998). 

20 5 U.S.C. 553(b)(3)(B); see Mid-Tex Elec. Co-op., 

Inc. v. Fed. Energy Regulatory Comm’n, 822 F.2d 

1123, 1133–34 (D.C. Cir. 1987). 

21 5 U.S.C. 603(a). 

22 Interpretive Ruling and Policy Statement 15–1, 

80 FR 57512 (Sept. 24, 2015). 

23 12 U.S.C. 1786(k)(2)(G)(i). 

24 44 U.S.C. 3507(d); 5 CFR part 1320. 

25Public Law 105–277, 112 Stat. 2681 (Oct. 21, 

1998). 

26Public Law 104–121, 110 Stat. 857 (Mar. 29, 

1996). 

27 5 U.S.C. 551. 

III. Regulatory Procedures 

A. Final Rule Under the APA 

In the 2015 amendments to the FCPIA 

Act, Congress provided that agencies 

shall make the required inflation 

adjustments in 2017 and subsequent 

years notwithstanding 5 U.S.C. 553,18

which requires agencies to follow 

notice-and-comment procedures in 

rulemaking and to make rules effective 

no sooner than 30 days after publication 

in the Federal Register. The 2015 

amendments provide a clear exception 

to these requirements.19 In addition, the 

Board finds that notice-and-comment 

procedures would be impracticable and 

unnecessary under the APA because of 

the largely ministerial and technical 

nature of the rule, which affords 

agencies limited discretion in 

promulgating the rule, and the statutory 

deadline for making the adjustments.20

In these circumstances, the Board finds 

good cause to issue a final rule without 

issuing a notice of proposed rulemaking 

or soliciting public comments. The 

Board also finds good cause to make the 

final rule effective upon publication 

because of the statutory deadline. 

Accordingly, this final rule is issued 

without prior notice and comment and 

will become effective immediately upon 

publication. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires the Board to prepare an 

analysis to describe any significant 

economic impact a regulation may have 

on a substantial number of small 

entities.21 For purposes of this analysis, 

the Board considers small credit unions 

to be those having under $100 million 

in assets.22 This final rule will not have 

a significant economic impact on a 

substantial number of small credit 

unions because it only affects the 

maximum amounts of CMPs that may be 

assessed in individual cases, which are 

not numerous and generally do not 

involve assessments at the maximum 

level. In addition, several of the CMPs 

are limited to a percentage of a credit 

union’s assets. Finally, in assessing 

CMPs, the Board generally must 

consider a party’s financial resources.23

Because this final rule will affect few, if 

any, small credit unions, the Board 

certifies that the final rule will not have 

a significant economic impact on small 

entities. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) applies to rulemakings in which 

an agency creates a new paperwork 

burden on regulated entities or modifies 

an existing burden.24 For purposes of 

the PRA, a paperwork burden may take 

the form of either a reporting or a 

recordkeeping requirement, both 

referred to as information collections. 

This final rule adjusts the maximum 

amounts of certain CMPs that the Board 

may assess against individuals, entities, 

or credit unions but does not require 

any reporting or recordkeeping. 

Therefore, this final rule will not create 

new paperwork burdens or modify any 

existing paperwork burdens. 

D. Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

state and local interests. In adherence to 

fundamental federalism principles, 

The NCUA, an independent 

regulatory agency as defined in 44 

U.S.C. 3502(5), voluntarily complies 

with the executive order. This final rule 

adjusts the maximum amounts of 

certain CMPs that the Board may assess 

against individuals, entities, and 

federally insured credit unions, 

including state-chartered credit unions. 

However, the final rule does not create 

any new authority or alter the 

underlying statutory authorities that 

enable the Board to assess CMPs. 

Accordingly, this final rule will not 

have a substantial direct effect on the 

states, on the connection between the 

national government and the states, or 

on the distribution of power and 

responsibilities among the various 

levels of government. The Board has 

determined that this final rule does not 

constitute a policy that has federalism 

implications for purposes of the 

executive order. 

E. Assessment of Federal Regulations 

and Policies on Families 

The Board has determined that this 

final rule will not affect family wellbeing within the meaning of Section 654 

of the Treasury and General 

Government Appropriations Act, 

1999.25

F. Small Business Regulatory 

Enforcement Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 26

(SBREFA) provides generally for 

congressional review of agency rules. A 

reporting requirement is triggered in 

instances where the Board issues a final 

rule as defined by Section 551 of the 

APA.27 The Board has submitted this 

final rule to OMB for it to determine 

whether it is a ‘‘major rule’’ within the 

meaning of the relevant sections of 

SBREFA. 

List of Subjects in 12 CFR Part 747 

Credit unions, Civil monetary 

penalties. 

By the National Credit Union 

Administration Board on January 9, 2018. 

Gerard S. Poliquin, 

Secretary of the Board. 

For the reasons stated above, the 

NCUA Board amends 12 CFR part 747 

as follows: 

PART 747—ADMINISTRATIVE 

ACTIONS, ADJUDICATIVE HEARINGS, 

RULES OF PRACTICE AND 

PROCEDURE, AND INVESTIGATIONS 

■ 1. The authority for part 747 

continues to read as follows: 

Authority: 12 U.S.C. 1766, 1782, 1784, 

1785, 1786, 1787, 1790a, 1790d; 15 U.S.C. 

1639e; 42 U.S.C. 4012a; Pub. L. 101–410; 

Pub. L. 104–134; Pub. L. 109–351; Pub. L. 

114–74. 

Subpart K—Inflation Adjustment of 

Civil Monetary Penalties 

■ 2. Revise § 747.1001 to read as 

follows: 

§ 747.1001 Adjustment of civil monetary 

penalties by the rate of inflation. 

(a) The NCUA is required by the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990 (Pub. L. 101– 

410, 104 Stat. 890, as amended (28 

U.S.C. 2461 note)), to adjust the 

maximum amount of each civil 

monetary penalty within its jurisdiction 

by the rate of inflation. The following 

chart displays those adjusted amounts, 

as calculated pursuant to the statute: 


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2032 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 

U.S. Code citation CMP description New maximum amount 

(1) 12 U.S.C. 1782(a)(3) .................................... Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report.$3,928. 

(2) 12 U.S.C. 1782(a)(3) .................................... Non-inadvertent failure to submit a report or 

the non-inadvertent submission of a false or 

misleading report.

$39,278. 

(3) 12 U.S.C. 1782(a)(3) .................................... Failure to submit a report or the submission of 

a false or misleading report done knowingly 

or with reckless disregard.

$1,963,870 or 1 percent of the total assets of 

the credit union, whichever is less. 

(4) 12 U.S.C. 1782(d)(2)(A) ................................ Tier 1 CMP for inadvertent failure to submit 

certified statement of insured shares and 

charges due to NCUSIF, or inadvertent 

submission of false or misleading statement.

$3,591. 

(5) 12 U.S.C. 1782(d)(2)(B) ................................ Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of 

false or misleading statement.

$35,904. 

(6) 12 U.S.C. 1782(d)(2)(C) ............................... Tier 3 CMP for failure to submit a certified 

statement or the submission of a false or 

misleading statement done knowingly or 

with reckless disregard.

$1,795,216 or 1 percent of the total assets of 

the credit union, whichever is less. 

(7) 12 U.S.C. 1785(a)(3) .................................... Non-compliance with insurance logo requirements.$122. 

(8) 12 U.S.C. 1785(e) (3) ................................... Non-compliance with NCUA security requirements.$285. 

(9) 12 U.S.C. 1786(k)(2)(A) ................................ Tier 1 CMP for violations of law, regulation, 

and other orders or agreements.

$9,819. 

(10) 12 U.S.C. 1786(k)(2)(A) .............................. Tier 2 CMP for violations of law, regulation, 

and other orders or agreements and for 

recklessly engaging in unsafe or unsound 

practices or breaches of fiduciary duty.

$49,096. 

(11) 12 U.S.C. 1786(k)(2)(A) .............................. Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (natural person).$1,963,870. 

(12) 12 U.S.C. 1786(k)(2)(A) .............................. Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (insured credit 

union).

$1,963,870 or 1 percent of the total assets of 

the credit union, whichever is less. 

(13) 12 U.S.C. 1786(w)(5)(ii) .............................. Non-compliance with senior examiner postemployment restrictions.$323,027. 

(14) 15 U.S.C. 1639e(k) ..................................... Non-compliance with appraisal independence 

requirements.

First violation: $11,279. 

Subsequent violations: $22,556. 

(15) 42 U.S.C. 4012a(f)(5) ................................. Non-compliance with flood insurance requirements.$2,133. 

(b) The adjusted amounts displayed in 

paragraph (a) of this section apply to 

civil monetary penalties that are 

assessed after the date the increase takes 

effect, including those whose associated 

violation or violations pre-dated the 

increase and occurred after November 2, 

2015. 

[FR Doc. 2018–00488 Filed 1–12–18; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2017–1141; Special 

Conditions No. 25–710–SC] 

Special Conditions: Dassault Aviation 

Model Falcon 5X Airplanes; NonRechargeable Lithium Battery 

Installations 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions; request 

for comment. 

SUMMARY: These special conditions are 

issued for non-rechargeable lithium 

battery installations on the Dassault 

Aviation (Dassault) Model Falcon 5X 

airplane. Non-rechargeable lithium 

batteries are a novel or unusual design 

feature when compared to the state of 

technology envisioned in the 

airworthiness standards for transport 

category airplanes. 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. 

DATES: This action is effective on 

Dassault Aviation on January 16, 2018. 

Send your comments by March 2, 2018. 

ADDRESSES: Send comments identified 

by docket number FAA–2017–1141 

using any of the following methods: 

• Federal eRegulations Portal: Go to 

http://www.regulations.gov/ and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30, U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE, Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE, Washington, DC, between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: The FAA will post all 

comments it receives, without change, 

to http://www.regulations.gov/, 

including any personal information the 

commenter provides. Using the search 

function of the docket website, anyone 

can find and read the electronic form of 

all comments received into any FAA 


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