Source: https://regulations.justia.com/regulations/fedreg/2018/01/12/2018-00536.html
Timestamp: 2018-03-19 12:20:12
Document Index: 783503753

Matched Legal Cases: ['arts 2', 'ART 2', 'art 2', '§ 2', '§ 2', 'ART 13', 'art 13', '§ 13', '§ 13', 'arts 19', 'art 109', 'art 19', 'arts 19', 'ART 19', 'art 19', '§ 19', 'ART 109', 'art 109', '§ 109', 'art 308', 'arts 19', 'ART 109']

Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments, 1517-1519 [2018-00536] :: Office Of The Comptroller Of The Currency :: Department Of Treasury :: Regulation Tracker :: Justia
Justia Regulation Tracker Department Of Treasury Office Of The Comptroller Of The Currency Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments, 1517-1519 [2018-00536]
Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments, 1517-1519 [2018-00536]
Download as PDF Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations U.S.C. 552 and 553, the NRC is adopting the following amendments to 10 CFR parts 2 and 13: PART 2—AGENCY RULES OF PRACTICE AND PROCEDURE 1. The authority citation for part 2 continues to read as follows: ■ Authority: Atomic Energy Act of 1954, secs. 29, 53, 62, 63, 81, 102, 103, 104, 105, 161, 181, 182, 183, 184, 186, 189, 191, 234 (42 U.S.C. 2039, 2073, 2092, 2093, 2111, 2132, 2133, 2134, 2135, 2201, 2231, 2232, 2233, 2234, 2236, 2239, 2241, 2282); Energy Reorganization Act of 1974, secs. 201, 206 (42 U.S.C. 5841, 5846); Nuclear Waste Policy Act of 1982, secs. 114(f), 134, 135, 141 (42 U.S.C. 10134(f), 10154, 10155, 10161); Administrative Procedure Act (5 U.S.C. 552, 553, 554, 557, 558); National Environmental Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 note. Section 2.205(j) also issued under 28 U.S.C. 2461 note. 2. In § 2.205, revise paragraph (j) to read as follows: ■ § 2.205 * * * * * (j) Amount. A civil monetary penalty imposed under Section 234 of the Atomic Energy Act of 1954, as amended, or any other statute within the jurisdiction of the Commission that provides for the imposition of a civil penalty in an amount equal to the amount set forth in Section 234, may not exceed $290,875 for each violation. If any violation is a continuing one, each day of such violation shall constitute a separate violation for the purposes of computing the applicable civil penalty. PART 13—PROGRAM FRAUD CIVIL REMEDIES 3. The authority citation for part 13 continues to read as follows: ■ Authority: 31 U.S.C. 3801 through 3812; 44 U.S.C. 3504 note. Section 13.3 also issued under 28 U.S.C. 2461 note. Section 13.13 also issued under 31 U.S.C. 3730. 4. In § 13.3, revise paragraphs (a)(1)(iv) and (b)(1)(ii) to read as follows: ■ sradovich on DSK3GMQ082PROD with RULES § 13.3 Basis for civil penalties and assessments. (a) * * * (1) * * * (iv) Is for payment for the provision of property or services which the person has not provided as claimed, shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $11,181 for each such claim. * * * * * 15:52 Jan 11, 2018 Dated in Rockville, Maryland, this 28th day of December, 2017. For the Nuclear Regulatory Commission. Frederick D. Brown, Acting Executive Director for Operations. [FR Doc. 2018–00368 Filed 1–11–18; 8:45 am] BILLING CODE 7590–01–P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 19 and 109 Civil penalties. VerDate Sep<11>2014 (b) * * * (1) * * * (ii) Contains or is accompanied by an express certification or affirmation of the truthfulness and accuracy of the contents of the statement, shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $11,181 for each such statement. * * * * * Jkt 244001 [Docket ID OCC–2018–0001] RIN 1557–AE14 Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments Office of the Comptroller of the Currency, Treasury. ACTION: Final rule. AGENCY: The Office of the Comptroller of the Currency (OCC) is amending its rules of practice and procedure for national banks and its rules of practice and procedure in adjudicatory proceedings for Federal savings associations to remove the chart listing the maximum dollar amount of civil money penalties the OCC has authority to assess. DATES: This rule is effective on January 12, 2018. FOR FURTHER INFORMATION CONTACT: Kevin Korzeniewski, Counsel, Legislative and Regulatory Activities Division, (202) 649–5490, or, for persons who are deaf or hearing impaired, TTY, (202) 649–5597. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background The Federal Civil Penalties Inflation Adjustment Act of 1990 (the 1990 Adjustment Act),1 as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 1 Public Law 101–410, Oct. 5, 1990, 104 Stat. 890, codified at 28 U.S.C. 2461 note. PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 1517 2015 (the 2015 Adjustment Act),2 requires Federal agencies to adjust the amount of their civil money penalties (CMPs) 3 for inflation by January 15 of each year, and requires the Office of Management and Budget (OMB) to issue guidance to Federal agencies not later than December 15 of each year, on implementing the required inflation adjustments. On January 27, 2017, the OCC published a final rule amending its rules of practice and procedure for national banks and its rules of practice and procedure in adjudicatory proceedings for Federal savings associations to adjust the maximum amount of each CMP within its jurisdiction to administer for inflation.4 The final rule also changed the method for making subsequent inflation adjustments, consistent with the 2015 Adjustment Act and OMB guidance.5 Specifically, sections 19.240(a) and 109.103(c)(1) of the rule codified the formula for making inflation adjustments for national banks and Federal savings associations, respectively. Sections 19.240(b) and 109.103(c)(2) of the rule provided a chart of penalties applicable during 2017. Sections 19.240(c) and 109.103(c)(3) also provided that notice of the maximum penalties which may be assessed for calendar years after 2017 will be published as a notice in the Federal Register on an annual basis on or before January 15 of each calendar year.6 2 Public Law 114–74, Title VII, section 701(b), Nov. 2, 2015, 129 Stat. 599, codified at 28 U.S.C. 2461 note. 3 The 2015 Adjustment Act defined a ‘‘civil monetary penalty’’ to mean ‘‘any penalty, fine, or other sanction that is for a specific monetary amount as provided by Federal law; or has a maximum amount provided for by Federal law; and is assessed or enforced by an agency pursuant to Federal law; and is assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal courts.’’ 28 U.S.C. 2461 note, section 3(2). Thus, a penalty based on another measure, such as a percentage of total assets, need not be adjusted. 4 82 FR 8584 (January 27, 2017). 5 See OMB Memorandum M–18–03, ‘‘Implementation of the 2018 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,’’ at 4, which permits agencies that have codified the formula to adjust CMPs for inflation to update the penalties through a notice rather than a regulation. 6 To the extent an agency has codified a CMP amount in its regulations, the agency would need to update that amount by regulation. However, if an agency has codified the formula for making the CMP adjustments, then subsequent adjustments can be made solely by notice. See OMB Memorandum M–18–03, ‘‘Implementation of the 2018 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,’’ at 4. E:\FR\FM\12JAR1.SGM 12JAR1 1518 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations II. Description of the Final Rule C. Regulatory Flexibility Act 12 CFR Part 109 Because the OCC will annually publish the maximum amount of CMPs the agency has authority to assess through a notice in the Federal Register, the CMP amounts listed in the charts at 12 CFR 19.240(b) and 109.103(c)(2) are out of date. Therefore, in order to avoid any confusion, the OCC is deleting the charts in sections 19.240(b) and 109.103(c)(2). The OCC is also making technical and conforming amendments in sections 19.240 and 109.103(c) to delete references to those charts, while retaining a description of the formula used to make the inflation adjustments and information on how the OCC will publish notice of the adjustments going forward. A complete list of the maximum amount of CMPs that can be assessed by the OCC during the current calendar year for violations that occurred on or after November 2, 2015, is also being published today in the Federal Register.7 The Regulatory Flexibility Act (RFA) requires that the agency determine the rule’s impact on small entities and consider options to reduce any significant economic impact on a substantial number of small entities. The RFA applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to 5 U.S.C. 553(b).9 Because the 2015 Adjustment Act specifically exempted agencies’ annual adjustments from the requirements of the APA,10 the OCC is not issuing a general notice of proposed rulemaking. Therefore, the RFA does not apply to this final rule. Administrative practice and procedure, Federal savings associations, Penalties. III. Regulatory Analysis A. Administrative Procedure Act The Administrative Procedure Act (APA) generally requires that an agency publish a general notice of proposed rulemaking in the Federal Register, unless an exception applies. In this case, the OCC finds an exception for good cause that a general notice of proposed rulemaking would be unnecessary, as the only changes in this final rule are technical amendments to remove outdated information regarding the OCC’s maximum CMP amounts and update related cross-references. sradovich on DSK3GMQ082PROD with RULES B. Delayed Effective Date Section 302 of the Riegle Community Development and Regulatory Improvement Act of 1994 8 (RCDRIA) requires that the effective date of new regulations and amendments to regulations that impose additional reporting, disclosures, or other new requirements on insured depository institutions shall be the first day of a calendar quarter that begins on or after the date the regulations are published in final form. 12 U.S.C. 4802(b)(1). The RCDRIA does not apply to this final rule because the rule does not impose any additional reporting, disclosures, or other new requirements. D. Unfunded Mandates Reform Act of 1995 Section 202 of the Unfunded Mandates Reform Act of 1995 requires that an agency prepare a budgetary impact statement before promulgating any rule likely to result in a Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector of $100 million or more, as adjusted for inflation, in any one year.11 The Unfunded Mandates Reform Act only applies when an agency issues a general notice of proposed rulemaking. Because the OCC is not issuing a general notice of proposed rulemaking, this final rule is not subject to section 202 of the Unfunded Mandates Reform Act. E. Paperwork Reduction Act Under the Paperwork Reduction Act of 1995 (PRA),12 the OCC may not conduct or sponsor, and notwithstanding any other provision of law, a person is not required to respond to, an information collection unless the information collection displays a valid OMB control number. The final rule contains no information collection requirements under the PRA. List of Subjects 12 CFR Part 19 Administrative practice and procedure, Crime, Equal access to justice, Investigations, National banks, Penalties, Securities. 95 7 Penalties assessed for violations occurring prior to November 2, 2015, will be subject to the maximum amounts set forth in the OCC’s regulations in effect prior to the enactment of the 2015 Adjustment Act. 8 12 U.S.C. 4802. VerDate Sep<11>2014 15:52 Jan 11, 2018 Jkt 244001 U.S.C. 601(2). U.S.C. 2461 note, section 4(b)(2) (‘‘the head of an agency shall adjust civil money penalties and shall make the adjustment notwithstanding section 553 of title 5, United States Code’’). 11 2 U.S.C. 1532. 12 44 U.S.C. 3501 et seq. 10 28 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 Authority and Issuance For the reasons set out in the preamble, parts 19 and 109 of chapter I of title 12 of the Code of Federal Regulations are 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. 93(b), 93a, 164, 481, 504, 1817, 1818, 1820, 1831m, 1831o, 1832, 1884, 1972, 3102, 3108(a), 3110, 3909, and 4717; 15 U.S.C. 78(h) and (i), 78o–4(c), 78o–5, 78q–1, 78s, 78u, 78u–2, 78u–3, 78w, and 1639e; 28 U.S.C. 2461 note; 31 U.S.C. 330 and 5321; and 42 U.S.C. 4012a. 2. Section 19.240 is revised to read as follows: ■ § 19.240 Inflation adjustments. (a) Statutory formula to calculate inflation adjustments. The OCC is required by statute to annually adjust for inflation the maximum amount of each civil money penalty within its jurisdiction to administer. The inflation adjustment is calculated by multiplying the maximum dollar amount of the civil money penalty for the previous calendar year by the cost-of-living inflation adjustment multiplier provided annually by the Office of Management and Budget and rounding the total to the nearest dollar. (b) Notice of inflation adjustments. The OCC will publish notice in the Federal Register of the maximum penalties which may be assessed on an annual basis on or before January 15 of each calendar year based on the formula in paragraph (a) of this section, for penalties assessed on, or after, the date of publication of the most recent notice related to conduct occurring on, or after, November 2, 2015. PART 109—RULES OF PRACTICE AND PROCEDURE IN ADJUDICATORY PROCEEDINGS 3. The authority citation for part 109 is revised to read as follows: ■ Authority: 5 U.S.C. 504, 554–557; 12 U.S.C. 1464, 1467, 1467a, 1468, 1817, 1818, 1820(k), 1829(e), 1832, 1884, 1972, 3349, 4717, 5412(b)(2)(B); 15 U.S.C. 78(l), 78o–5, 78u–2, 1639e; 28 U.S.C. 2461 note; 31 U.S.C. 5321; and 42 U.S.C. 4012a. 4. Section 109.103 is amended by revising paragraph (c) to read as follows: ■ E:\FR\FM\12JAR1.SGM 12JAR1 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations § 109.103 Civil money penalties. * * * * * (c) Maximum amount of civil money penalties—(1) Statutory formula. The OCC is required by statute to annually adjust for inflation the maximum amount of each civil money penalty within its jurisdiction to administer. The inflation adjustment is calculated by multiplying the maximum dollar amount of the civil money penalty for the previous calendar year by the costof-living inflation adjustment multiplier provided annually by the Office of Management and Budget and rounding the total to the nearest dollar. (2) Notice of inflation adjustments. The OCC will publish notice in the Federal Register of the maximum penalties which may be assessed on an annual basis on, or before, January 15 of each calendar year based on the formula in paragraph (a) of this section, for penalties assessed on, or after, the date of publication of the most recent notice related to conduct occurring on or after November 2, 2015. Dated: January 9, 2018. Karen Solomon, Acting Senior Deputy Comptroller and Chief Counsel, Office of the Comptroller of the Currency. [FR Doc. 2018–00536 Filed 1–11–18; 8:45 am] BILLING CODE 4810–33–P FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 308 RIN 3064–AE71 Rules of Practice and Procedure Federal Deposit Insurance Corporation (FDIC). ACTION: Final rule. AGENCY: The FDIC is adjusting the maximum amount of each civil money penalty (CMP) within its jurisdiction to account for inflation. This action is required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Adjustment Act). DATES: This rule is effective January 15, 2018. FOR FURTHER INFORMATION CONTACT: Seth P. Rosebrock, Supervisory Counsel, Legal Division (202) 898–6609, or Graham N. Rehrig, Senior Attorney, Legal Division (202) 898–3829. SUPPLEMENTARY INFORMATION: sradovich on DSK3GMQ082PROD with RULES SUMMARY: I. Policy Objectives The Final Rule changes the maximum limit for CMPs according to inflation as mandated by Congress in the 2015 VerDate Sep<11>2014 17:21 Jan 11, 2018 Jkt 244001 Adjustment Act.1 The intended effect of annually adjusting maximum civil money penalties in accordance with changes in the Consumer Price Index is to minimize any distortion in the real value of those maximums due to inflation, thereby promoting a more consistent deterrent effect in the structure of CMPs. II. Background The FDIC assesses CMPs under section 8(i) of the Federal Deposit Insurance Act (FDIA), 12 U.S.C. 1818, and a variety of other statutes.2 Congress established maximum penalties that could be assessed under these statutes. In many cases, these statutes contain multiple penalty tiers, permitting the assessment of penalties at various levels depending upon the severity of the misconduct at issue.3 In 1990, Congress determined that the assessment of CMPs plays ‘‘an important role in deterring violations and furthering the policy goals embodied in such laws and regulations’’ and concluded that ‘‘the impact of many civil monetary penalties has been and is diminished due to the effect of inflation.’’ 4 Consequently, Congress required federal agencies with authority to impose CMPs to periodically adjust by rulemaking the maximum CMPs which these agencies were authorized to impose in order to ‘‘maintain the deterrent effect of civil monetary penalties and promote compliance with the law.’’ 5 Under the 1990 Adjustment Act, the FDIC adjusted its CMP amounts every four years.6 In 2015, Congress revised the process by which federal agencies adjust applicable CMPs for inflation.7 Under the 2015 Adjustment Act, the FDIC is required to make annual adjustments for inflation.8 These adjustments apply to all CMPs covered by the 2015 1 Public Law 114–74, sec. 701, 129 Stat. 584. e.g., 12 U.S.C. 1972(2)(F) (authorizing the FDIC to impose CMPs for violations of the Bank Holding Company Act of 1970 related to prohibited tying arrangements); 15 U.S.C. 78u–2 (authorizing the FDIC to impose CMPs for violations of certain provisions of the Securities Exchange Act of 1934); 42 U.S.C. 4012a(f) (authorizing the FDIC to impose CMPs for pattern or practice violations of the Flood Disaster Protection Act). 3 For example, Section 8(i)(2) of the FDIA, 12 U.S.C. 1818(i)(2), provides for three tiers of CMPs, with the size of such CMPs increasing with the gravity of the misconduct. 4 Section 2 of the Federal Civil Penalties Inflation Adjustment Act of 1990 (1990 Adjustment Act). Public Law 101–410, 104 Stat. 890 (amended 2015) (codified as amended at 28 U.S.C. 2461 note). 5 Id. 6 See, e.g., 77 FR 74573 (Dec. 17, 2012). 7 See Public Law 114–74, sec. 701, 129 Stat. 584. 8 See id. at sec. 701(b). 2 See, PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 1519 Adjustment Act.9 The 2015 Adjustment Act requires annual adjustments to be made by January 15 of each year.10 Although the 2015 Adjustment Act increases the maximum penalty that may be assessed under each applicable statute, the FDIC possesses discretion to impose CMP amounts below the maximum level in accordance with the severity of the misconduct at issue. For example, when making a determination as to the appropriate level of a penalty assessed under section 8(i)(2) of the FDIA, 12 U.S.C. 1818(i)(2), the FDIC is guided by statutory factors set forth in section 8(i)(2)(G) of the FDIA, 12 U.S.C. 1818(i)(2)(G), and those factors identified in the Interagency Policy Statement Regarding the Assessment of CMPs by the Federal Financial Institutions Regulatory Agencies.11 Such factors include, but are not limited to, the gravity and duration of the misconduct, and the intent related to the misconduct. The 2015 Adjustment Act notes that the FDIC ‘‘shall adjust [CMPs] and shall make the adjustment notwithstanding section 553 of title 5, United States Code’’ (the Administrative Procedure Act).12 The FDIC, therefore, is not obligated to publish the adjustments through notice-and-comment rulemaking, and the FDIC is publishing the adjustments through a final rule. III. Description and Expected Effects of the Final Rule The Final Rule modifies the maximum limit for CMPs according to inflation as mandated by Congress in the 2015 Adjustment Act. The 2015 Adjustment Act directs federal agencies to follow guidance issued by the Office of Management and Budget (OMB) on December 15, 2017 (OMB Guidance), when calculating new maximum penalty levels.13 The adjustments are to be based on the percent change between the Consumer Price Index for all Urban Consumers (CPI–U)14 for October 2016 and the October 2017 CPI–U. 9 See Public Law 101–410, sec. 3(2), 104 Stat. 890 (amended 2015) (codified as amended at 28 U.S.C. 2461 note). 10 Public Law 114–74, sec. 701(b), 129 Stat. 584. 11 63 FR 30227 (June 3, 1998). 12 Public Law 114–74, sec. 701(b), 129 Stat. 584 (emphasis added). 13 See 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 2018 CMP-adjustment multiplier is 1.02041). 14 The CPI–U is compiled by the Bureau of Labor Statistics of the Department of Labor. E:\FR\FM\12JAR1.SGM 12JAR1
[Pages 1517-1519]
[FR Doc No: 2018-00536]
[Docket ID OCC-2018-0001]
Rules of Practice and Procedure; Rules of Practice and Procedure
in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments
amending its rules of practice and procedure for national banks and its
rules of practice and procedure in adjudicatory proceedings for Federal
savings associations to remove the chart listing the maximum dollar
amount of civil money penalties the OCC has authority to assess.
DATES: This rule is effective on January 12, 2018.
FOR FURTHER INFORMATION CONTACT: Kevin Korzeniewski, Counsel,
Legislative and Regulatory Activities Division, (202) 649-5490, or, for
persons who are deaf or hearing impaired, TTY, (202) 649-5597.
The Federal Civil Penalties Inflation Adjustment Act of 1990 (the
1990 Adjustment Act),\1\ as amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (the 2015 Adjustment
Act),\2\ requires Federal agencies to adjust the amount of their civil
money penalties (CMPs) \3\ for inflation by January 15 of each year,
and requires the Office of Management and Budget (OMB) to issue
guidance to Federal agencies not later than December 15 of each year,
on implementing the required inflation adjustments.
\1\ Public Law 101-410, Oct. 5, 1990, 104 Stat. 890, codified at
\2\ Public Law 114-74, Title VII, section 701(b), Nov. 2, 2015,
129 Stat. 599, codified at 28 U.S.C. 2461 note.
\3\ The 2015 Adjustment Act defined a ``civil monetary penalty''
to mean ``any penalty, fine, or other sanction that is for a
specific monetary amount as provided by Federal law; or has a
maximum amount provided for by Federal law; and is assessed or
enforced by an agency pursuant to Federal law; and is assessed or
enforced pursuant to an administrative proceeding or a civil action
in the Federal courts.'' 28 U.S.C. 2461 note, section 3(2). Thus, a
penalty based on another measure, such as a percentage of total
assets, need not be adjusted.
On January 27, 2017, the OCC published a final rule amending its
rules of practice and procedure for national banks and its rules of
practice and procedure in adjudicatory proceedings for Federal savings
associations to adjust the maximum amount of each CMP within its
jurisdiction to administer for inflation.\4\ The final rule also
changed the method for making subsequent inflation adjustments,
consistent with the 2015 Adjustment Act and OMB guidance.\5\
Specifically, sections 19.240(a) and 109.103(c)(1) of the rule codified
the formula for making inflation adjustments for national banks and
Federal savings associations, respectively. Sections 19.240(b) and
109.103(c)(2) of the rule provided a chart of penalties applicable
during 2017. Sections 19.240(c) and 109.103(c)(3) also provided that
notice of the maximum penalties which may be assessed for calendar
years after 2017 will be published as a notice in the Federal Register
on an annual basis on or before January 15 of each calendar year.\6\
\4\ 82 FR 8584 (January 27, 2017).
\5\ See OMB Memorandum M-18-03, ``Implementation of the 2018
annual adjustment pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015,'' at 4, which permits
agencies that have codified the formula to adjust CMPs for inflation
to update the penalties through a notice rather than a regulation.
\6\ To the extent an agency has codified a CMP amount in its
regulations, the agency would need to update that amount by
regulation. However, if an agency has codified the formula for
making the CMP adjustments, then subsequent adjustments can be made
solely by notice. See OMB Memorandum M-18-03, ``Implementation of
the 2018 annual adjustment pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015,'' at 4.
Because the OCC will annually publish the maximum amount of CMPs
the agency has authority to assess through a notice in the Federal
Register, the CMP amounts listed in the charts at 12 CFR 19.240(b) and
109.103(c)(2) are out of date. Therefore, in order to avoid any
confusion, the OCC is deleting the charts in sections 19.240(b) and
109.103(c)(2). The OCC is also making technical and conforming
amendments in sections 19.240 and 109.103(c) to delete references to
those charts, while retaining a description of the formula used to make
the inflation adjustments and information on how the OCC will publish
notice of the adjustments going forward. A complete list of the maximum
amount of CMPs that can be assessed by the OCC during the current
calendar year for violations that occurred on or after November 2,
2015, is also being published today in the Federal Register.\7\
\7\ Penalties assessed for violations occurring prior to
November 2, 2015, will be subject to the maximum amounts set forth
in the OCC's regulations in effect prior to the enactment of the
2015 Adjustment Act.
The Administrative Procedure Act (APA) generally requires that an
agency publish a general notice of proposed rulemaking in the Federal
Register, unless an exception applies. In this case, the OCC finds an
exception for good cause that a general notice of proposed rulemaking
would be unnecessary, as the only changes in this final rule are
technical amendments to remove outdated information regarding the OCC's
maximum CMP amounts and update related cross-references.
Improvement Act of 1994 \8\ (RCDRIA) requires that the effective date
of new regulations and amendments to regulations that impose additional
institutions shall be the first day of a calendar quarter that begins
on or after the date the regulations are published in final form. 12
U.S.C. 4802(b)(1). The RCDRIA does not apply to this final rule because
the rule does not impose any additional reporting, disclosures, or
other new requirements.
The Regulatory Flexibility Act (RFA) requires that the agency
determine the rule's impact on small entities and consider options to
reduce any significant economic impact on a substantial number of small
entities. The RFA applies only to rules for which an agency publishes a
general notice of proposed rulemaking pursuant to 5 U.S.C. 553(b).\9\
Because the 2015 Adjustment Act specifically exempted agencies' annual
adjustments from the requirements of the APA,\10\ the OCC is not
issuing a general notice of proposed rulemaking. Therefore, the RFA
\9\ 5 U.S.C. 601(2).
\10\ 28 U.S.C. 2461 note, section 4(b)(2) (``the head of an
agency shall adjust civil money penalties and shall make the
that an agency prepare a budgetary impact statement before promulgating
any rule likely to result in a Federal mandate that may result in the
or by the private sector of $100 million or more, as adjusted for
inflation, in any one year.\11\ The Unfunded Mandates Reform Act only
applies when an agency issues a general notice of proposed rulemaking.
Because the OCC is not issuing a general notice of proposed rulemaking,
this final rule is not subject to section 202 of the Unfunded Mandates
Under the Paperwork Reduction Act of 1995 (PRA),\12\ the OCC may
not conduct or sponsor, and notwithstanding any other provision of law,
a person is not required to respond to, an information collection
unless the information collection displays a valid OMB control number.
The final rule contains no information collection requirements under
Administrative practice and procedure, Federal savings
associations, Penalties.
For the reasons set out in the preamble, parts 19 and 109 of
chapter I of title 12 of the Code of Federal Regulations are amended as
481, 504, 1817, 1818, 1820, 1831m, 1831o, 1832, 1884, 1972, 3102,
3108(a), 3110, 3909, and 4717; 15 U.S.C. 78(h) and (i), 78o-4(c),
78o-5, 78q-1, 78s, 78u, 78u-2, 78u-3, 78w, and 1639e; 28 U.S.C. 2461
note; 31 U.S.C. 330 and 5321; and 42 U.S.C. 4012a.
Sec.  19.240  Inflation adjustments.
(a) Statutory formula to calculate inflation adjustments. The OCC
is required by statute to annually adjust for inflation the maximum
amount of each civil money penalty within its jurisdiction to
administer. The inflation adjustment is calculated by multiplying the
maximum dollar amount of the civil money penalty for the previous
calendar year by the cost-of-living inflation adjustment multiplier
provided annually by the Office of Management and Budget and rounding
the total to the nearest dollar.
(b) Notice of inflation adjustments. The OCC will publish notice in
the Federal Register of the maximum penalties which may be assessed on
an annual basis on or before January 15 of each calendar year based on
the formula in paragraph (a) of this section, for penalties assessed
on, or after, the date of publication of the most recent notice related
to conduct occurring on, or after, November 2, 2015.
PART 109--RULES OF PRACTICE AND PROCEDURE IN ADJUDICATORY
Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 1464, 1467, 1467a,
1468, 1817, 1818, 1820(k), 1829(e), 1832, 1884, 1972, 3349, 4717,
5412(b)(2)(B); 15 U.S.C. 78(l), 78o-5, 78u-2, 1639e; 28 U.S.C. 2461
4. Section 109.103 is amended by revising paragraph (c) to read as
Sec.  109.103  Civil money penalties.
(c) Maximum amount of civil money penalties--(1) Statutory formula.
The OCC is required by statute to annually adjust for inflation the
maximum amount of each civil money penalty within its jurisdiction to
(2) Notice of inflation adjustments. The OCC will publish notice in
an annual basis on, or before, January 15 of each calendar year based
on the formula in paragraph (a) of this section, for penalties assessed
to conduct occurring on or after November 2, 2015.