Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 1525 

1Public Law 101–410, 104 Stat. 890. 

2Public Law 104–134, section 31001(s)(1), 110 

Stat. 1321, 1321–373. 

3Public Law 114–74, section 701, 129 Stat. 584, 

599. 

4Section 1301(a) of the Federal Reports 

Elimination Act of 1998, Public Law 105–362, 112 

Stat. 3293, also amended the Inflation Adjustment 

Act by striking section 6, which contained annual 

reporting requirements, and redesignating section 7 

as section 6, but did not alter the civil penalty 

adjustment requirements. 

5 81 FR 38569 (June 14, 2016). Although the 

Bureau was not obligated to solicit comments for 

the interim final rule, the Bureau invited public 

comment and received none. 

6See 12 CFR 1083.1. 

7 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

8 Inflation Adjustment Act sections 4 and 5, 

codified at 28 U.S.C. 2461 note. 

9 Inflation Adjustment Act sections 3 and 5, 

codified at 28 U.S.C. 2461 note. 

10 Inflation Adjustment Act section 7, codified at 

28 U.S.C. 2461 note. 

11 Inflation Adjustment Act section 5, codified at 

28 U.S.C. 2461 note; Memorandum to the Exec. 

Dep’ts & Agencies from Mick Mulvaney, Director, 

Office of Mgmt. & Budget (Dec. 15, 2017), available 

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

uploads/2017/11/M-18-03.pdf. 

Pursuant to section 21B of the Securities 

Exchange Act of 1934 (Exchange Act) 

(15 U.S.C. 78u–2), civil money penalties 

may be assessed for violations of certain 

provisions of the Exchange Act, where 

such penalties are in the public interest. 

Tier One civil money penalties may be 

assessed pursuant to 15 U.S.C. 78u– 

2(b)(1) in an amount not to exceed 

$9,239 for a natural person or $92,383 

for any other person for violations set 

forth in 15 U.S.C. 78u–2(a). Tier Two 

civil money penalties may be assessed 

pursuant to 15 U.S.C. 78u–2(b)(2) in an 

amount not to exceed—for each 

violation set forth in 15 U.S.C. 78u– 

2(a)—$92,383 for a natural person or 

$461,916 for any other person if the act 

or omission involved fraud, deceit, 

manipulation, or deliberate or reckless 

disregard of a regulatory requirement. 

Tier Three civil money penalties may be 

assessed pursuant to 15 U.S.C. 78u– 

2(b)(3) for each violation set forth in 15 

U.S.C. 78u–2(a), in an amount not to 

exceed $184,767 for a natural person or 

$923,831 for any other person, if the act 

or omission involved fraud, deceit, 

manipulation, or deliberate or reckless 

disregard of a regulatory requirement; 

and such act or omission directly or 

indirectly resulted in substantial losses, 

or created a significant risk of 

substantial losses to other persons or 

resulted in substantial pecuniary gain to 

the person who committed the act or 

omission. 

(16) Civil money penalties assessed 

pursuant to 15 U.S.C. 1639e(k) for 

appraisal independence violations. 

Pursuant to section 1472(a) of the DoddFrank Wall Street Reform and Consumer 

Protection Act (Appraisal Independence 

Rule) (15 U.S.C. 1639e(k)), civil money 

penalties may be assessed for an initial 

violation of the Appraisal Independence 

Rule in an amount not to exceed 

$11,279 for each day during which the 

violation continues and, for subsequent 

violations, $22,556 for each day during 

which the violation continues. 

(17) Civil money penalties assessed 

for false claims and statements 

pursuant to 31 U.S.C. 3802. Pursuant to 

the Program Fraud Civil Remedies Act 

(31 U.S.C. 3802), civil money penalties 

of not more than $11,181 per claim or 

statement may be assessed for violations 

involving false claims and statements. 

(18) Civil money penalties assessed 

for violations of 42 U.S.C. 4012a(f). 

Pursuant to the Flood Disaster 

Protection Act (FDPA) (42 U.S.C. 

4012a(f)), civil money penalties may be 

assessed against any regulated lending 

institution that engages in a pattern or 

practice of violations of the FDPA in an 

amount not to exceed $2,133 per 

violation. 

Dated at Washington, DC on December 19, 

2017. 

By order of the Board of Directors. 

Valerie J. Best, 

Assistant Executive Secretary. 

[FR Doc. 2018–00403 Filed 1–11–18; 8:45 am] 

BILLING CODE 6714–01–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1083 

Civil Penalty Inflation Adjustments 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is 

adjusting for inflation the maximum 

amount of each civil penalty within the 

Bureau’s jurisdiction. These 

adjustments are required by 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 inflation 

adjustments mandated by the Inflation 

Adjustment Act serve to maintain the 

deterrent effect of civil penalties and to 

promote compliance with the law. 

DATES: This final rule is effective 

January 15, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Monique Chenault, Paralegal Specialist, 

Office of Regulations, Consumer 

Financial Protection Bureau, 1700 

G Street NW, Washington, DC 20552, at 

(202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Federal Civil Penalties Inflation 

Adjustment Act of 1990,1 as amended 

by the Debt Collection Improvement Act 

of 1996 2 and further amended by the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (Inflation Adjustment Act),3

directs Federal agencies to adjust for 

inflation the civil penalty amounts 

within their jurisdiction not later than 

July 1, 2016, and then not later than 

January 15 every year thereafter.4 28 

U.S.C. 2461 note. Each agency was 

required to make the 2016 one-time 

catch-up adjustments through an 

interim final rule published in the 

Federal Register. On June 14, 2016, the 

Bureau published its interim final rule 

to make the initial catch-up adjustments 

to civil penalties within the Bureau’s 

jurisdiction.5 The June 2016 interim 

final rule created a new part 1083 and 

in § 1083.1 established the inflationadjusted maximum amounts for each 

civil penalty within the Bureau’s 

jurisdiction.6 The Inflation Adjustment 

Act also requires subsequent 

adjustments to be made annually, not 

later than January 15, and 

notwithstanding section 553 of the 

Administrative Procedure Act (APA).7

Specifically, Federal agencies are 

directed to adjust annually each civil 

penalty provided by law within the 

jurisdiction of the agency by the ‘‘costof-living adjustment.’’ 8 For annual 

adjustments after the initial catch up 

adjustments, the ‘‘cost-of-living 

adjustment’’ is defined as the percentage 

(if any) by which the Consumer Price 

Index for All Urban Consumers (CPI–U) 

for the month of October preceding the 

date of the adjustment, exceeds the CPI– 

U for October of the prior year.9 The 

Director of the Office of Management 

and Budget (OMB) is required to issue 

guidance (OMB Guidance) every year by 

December 15 to agencies on 

implementing the annual civil penalty 

inflation adjustments.10 Pursuant to the 

Inflation Adjustment Act and OMB 

Guidance, agencies must apply the 

multiplier reflecting the ‘‘cost-of-living 

adjustment’’ to the current penalty 

amount and then round that amount to 

the nearest dollar to determine the 

annual adjustments.11

For the 2018 annual adjustment, the 

multiplier reflecting the ‘‘cost-of-living 


sradovich on DSK3GMQ082PROD with RULES
1526 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 

12Memorandum to the Exec. Dep’ts & Agencies 

from Mick Mulvaney, Director, Office of Mgmt. & 

Budget (Dec. 15, 2017), available at https://

www.whitehouse.gov/wp-content/uploads/2017/11/ 

M-18-03.pdf. 

13 In rounding to the nearest dollar, the Bureau 

has rounded down where the digit immediately 

following the decimal point is less than 5 and has 

rounded up where the digit immediately following 

the decimal point is 5 or greater. 

14Public Law 101–410, 104 Stat. 890. 

15Public Law 104–134, section 31001(s)(1), 110 

Stat. 1321, 1321–373. 16Public Law 114–74, section 701, 129 Stat. 584, 

599. 17 5 U.S.C. 553(b)(B). 18 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

19Memorandum to the Exec. Dep’ts & Agencies 

from Mick Mulvaney, Director, Office of Mgmt. & 

Budget (Dec. 15, 2017), available at https://

www.whitehouse.gov/wp-content/uploads/2017/11/ 

M-18-03.pdf. 

20 5 U.S.C. 553(d). 

21 Inflation Adjustment Act section 4, codified at 

28 U.S.C. 2461 note. 

22Memorandum to the Exec. Dep’ts & Agencies 

from Mick Mulvaney, Director, Office of Mgmt. & 

Budget (Dec. 15, 2017), available at https://

www.whitehouse.gov/wp-content/uploads/2017/11/ 

M-18-03.pdf. 

23 5 U.S.C. 603(a), 604(a). 

24 44 U.S.C. 3506; 5 CFR part 1320. 

adjustment’’ is 1.02041.12 Pursuant to 

the Inflation Adjustment Act and OMB 

Guidance, the Bureau multiplied each of 

its civil penalty amounts by the ‘‘costof-living adjustment’’ multiplier and 

rounded to the nearest dollar.13

The new penalty amounts that apply 

to civil penalties assessed after January 

15, 2018 are as follows: 

Law Penalty description 

Penalty 

amounts 

established 

under 2017 

final rule 

OMB 

‘‘Cost-of-Living 

Adjustment’’ 

multiplier 

New penalty 

amount 

Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(A) ...................... Tier 1 penalty .................................... $5,526 1.02041 $5,639 

Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(B) ...................... Tier 2 penalty .................................... 27,631 1.02041 28,195 

Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(C) ...................... Tier 3 penalty .................................... 1,105,241 1.02041 1,127,799 

Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2) ............... Per violation ...................................... 1,925 1.02041 1,964 

Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2) ............... Annual cap ........................................ 1,924,589 1.02041 1,963,870 

Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1) .................... Per failure .......................................... 90 1.02041 92 

Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1) .................... Annual cap ........................................ 181,071 1.02041 184,767 

Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(2)(A) ............... Per failure, where intentional ............ 181 1.02041 185 

SAFE Act, 12 U.S.C. 5113(d)(2) ................................................................... Per violation ...................................... 27,904 1.02041 28,474 

Truth in Lending Act, 15 U.S.C. 1639e(k)(1) ................................................ First violation ..................................... 11,053 1.02041 11,279 

Truth in Lending Act, 15 U.S.C. 1639e(k)(2) ................................................ Subsequent violations ....................... 22,105 1.02041 22,556 

II. Legal Authority 

The Bureau issues this final rule 

under the Federal Civil Penalties 

Inflation Adjustment Act of 1990,14 as 

amended by the Debt Collection 

Improvement Act of 1996 15 and further 

amended by the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015,16 which requires the 

Bureau to adjust for inflation the civil 

penalties within its jurisdiction 

according to a statutorily prescribed 

formula. 

III. Procedural Requirements 

A. Administrative Procedure Act 

Under the APA, notice and 

opportunity for public comment are not 

required if the Bureau finds that notice 

and public comment are impracticable, 

unnecessary, or contrary to the public 

interest.17 Pursuant to this final rule, 

§ 1083.1 is amended to update the civil 

penalty amounts. The 2018 adjustments 

to the civil penalty amounts are 

technical and non-discretionary, and 

they merely apply the statutory method 

for adjusting civil penalty amounts. 

These adjustments are required by the 

Inflation Adjustment Act. Moreover, the 

Inflation Adjustment Act directs 

agencies to adjust the civil penalties 

annually notwithstanding section 553 of 

the APA,18 and OMB Guidance 

reaffirms that agencies need not 

complete a notice-and-comment process 

before making the annual adjustments 

for inflation.19 For these reasons, the 

Bureau has determined that publishing 

a notice of proposed rulemaking and 

providing opportunity for public 

comment are unnecessary. Therefore, 

the amendment is adopted in final form. 

Section 553(d) of the APA generally 

requires publication of a final rule not 

less than 30 days before its effective 

date, except (1) a substantive rule which 

grants or recognizes an exemption or 

relieves a restriction; (2) interpretive 

rules and statements of policy; or (3) as 

otherwise provided by the agency for 

good cause found and published with 

the rule.20 At a minimum, the Bureau 

believes the annual adjustments to the 

civil penalty amounts in § 1083.1 fall 

under the third exception to section 

553(d). The Bureau finds that there is 

good cause to make the amendments 

effective on January 15, 2018. The 

amendments to § 1083.1 in this final 

rule are technical and nondiscretionary, and they merely apply the 

statutory method for adjusting civil 

penalty amounts and follow the 

statutory directive to make annual 

adjustments by January 15 of each year. 

Moreover, the Inflation Adjustment Act 

directs agencies to adjust the civil 

penalties annually notwithstanding 

section 553 of the APA,21 and OMB 

Guidance reaffirms that agencies need 

not provide a delay in effective date for 

the annual adjustments for inflation.22

B. Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking is required, the Regulatory 

Flexibility Act does not require an 

initial or final regulatory flexibility 

analysis.23

C. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,24 the Bureau 

reviewed this final rule. No collections 

of information pursuant to the 

Paperwork Reduction Act are contained 

in the final rule. 

D. Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), CFPB will 

submit a report containing this rule and 

other required information to the U.S. 

Senate, the U.S. House of 

Representatives, and the Comptroller 

General of the United States prior to the 

rule taking effect. The Office of 

Information and Regulatory Affairs 

(OIRA) has designated this rule as not 

a ‘‘major rule’’ as defined by 5 U.S.C. 

804(2). 

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 amends 12 CFR part 1083 as set 

forth below: 


sradovich on DSK3GMQ082PROD with RULES
Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 1527 

PART 1083—CIVIL PENALTY 

ADJUSTMENTS 

■ 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. 

■ 2. Section 1083.1 is revised to read as 

follows: 

§ 1083.1 Adjustments of civil penalty 

amounts. 

(a) The maximum amount of each 

civil penalty within the jurisdiction of 

the Consumer Financial Protection 

Bureau to impose is adjusted in 

accordance with 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 (28 U.S.C. 

2461 note), as follows: 

U.S. Code citation Civil penalty description 

Adjusted 

maximum 

civil 

penalty 

amount 

12 U.S.C. 5565(c)(2)(A) .............................................................. Tier 1 penalty ............................................................................. $5,639 

12 U.S.C. 5565(c)(2)(B) .............................................................. Tier 2 penalty ............................................................................. 28,195 

12 U.S.C. 5565(c)(2)(C) .............................................................. Tier 3 penalty ............................................................................. 1,127,799 

15 U.S.C. 1717a(a)(2) ................................................................ Per violation ............................................................................... 1,964 

15 U.S.C. 1717a(a)(2) ................................................................ Annual cap ................................................................................. 1,963,870 

12 U.S.C. 2609(d)(1) .................................................................. Per failure ................................................................................... 92 

12 U.S.C. 2609(d)(1) .................................................................. Annual cap ................................................................................. 184,767 

12 U.S.C. 2609(d)(2)(A) .............................................................. Per failure, where intentional ..................................................... 185 

12 U.S.C. 5113(d)(2) .................................................................. Per violation ............................................................................... 28,474 

15 U.S.C. 1639e(k)(1) ................................................................. First violation .............................................................................. 11,279 

15 U.S.C. 1639e(k)(2) ................................................................. Subsequent violations ................................................................ 22,556 

(b) The adjustments in paragraph (a) 

of this section shall apply to civil 

penalties assessed after January 15, 

2018, regardless of when the violation 

for which the penalty is assessed 

occurred. 

Dated: January 4, 2018. 

Mick Mulvaney, 

Acting Director, Bureau of Consumer 

Financial Protection. 

[FR Doc. 2018–00399 Filed 1–11–18; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2017–1244; Product 

Identifier 2013–NM–145–AD; Amendment 

39–19152; AD 2018–01–11] 

RIN 2120–AA64 

Airworthiness Directives; Airbus 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

Airbus Model A319–115 and A319–133 

airplanes. This AD requires contacting 

the FAA to obtain instructions for 

addressing the unsafe condition on 

these products, and doing the actions 

specified in those instructions. This AD 

was prompted by a fire during a flight, 

in the vicinity of the gaseous oxygen 

system (GOS) for passengers. We are 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD becomes effective 

January 29, 2018. 

We must receive comments on this 

AD by February 26, 2018. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2017– 

1244; or in person at the Docket 

Operations office between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. The AD docket 

contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The street address for 

the Docket Operations office (telephone: 

800–647–5527) is in the ADDRESSES

section. Comments will be available in 

the AD docket shortly after receipt. 

FOR FURTHER INFORMATION CONTACT: 

Sanjay Ralhan, Aerospace Engineer, 

International Section, Transport 

Standards Branch, FAA, 1601 Lind 

Avenue SW, Renton, WA 98057–3356; 

telephone: 425–227–1405; fax: 425– 

227–1149. 

SUPPLEMENTARY INFORMATION: 

Discussion 

The European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Union, has issued EASA AD 2014–0045, 

dated February 25, 2014; corrected 

March 4, 2014 (referred to after this as 

the Mandatory Continuing 

Airworthiness Information, or ‘‘the 

MCAI’’), to correct an unsafe condition 

for certain Airbus Model A319–115 and 

A319–133 airplanes. The MCAI states: 

Following an ECAM [electronic centralized 

aircraft monitor] warning ‘‘CARGO SMOKE’’ 

during flight, the flight crew elected to divert 

and the aeroplane made an uneventful 

landing. The post-flight inspection evidenced 

a heavy fire in the vicinity of the Gaseous 

Oxygen System (GOS) for passengers, located 

close to the cargo area. The origin of the fire 

has not been clearly identified. After more 

investigation, Airbus determined that the 

current optional passenger GOS design, 

specific to A319 aeroplanes, is not robust 

enough to prevent further events of this kind. 

This condition, if not detected and 

corrected, could lead to an uncontrolled fire, 

possibly resulting in loss of the aeroplane. 

To address this potential unsafe condition, 

Airbus developed mod 153555 to improve 


sradovich on DSK3GMQ082PROD with RULES