2020-00161. Rules of Practice for Hearings  

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    AGENCY:

    Board of Governors of the Federal Reserve System.

    ACTION:

    Final rule.

    SUMMARY:

    The Board of Governors of the Federal Reserve System (the “Board”) is issuing a final rule amending its rules of practice and procedure to adjust the amount of each civil money penalty (“CMP”) provided by law within its jurisdiction to account for inflation as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

    DATES:

    This final rule is effective on January 14, 2020.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    Thomas O. Kelly, Senior Counsel (202-974-7059), Legal Division, Board of Governors of the Federal Reserve System, 20th Street and Constitution Ave. NW, Washington, DC 20551. For users of Telecommunication Device for the Deaf (TDD) only, contact 202-263-4869.

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    Federal Civil Penalties Inflation Adjustment Act

    The Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. 2461 note (“FCPIA Act”), requires Federal agencies to adjust, by regulation, the CMPs within their jurisdiction to account for inflation. The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the “2015 Act”) [1] amended the FCPIA Act to require Federal agencies to make annual adjustments not later than January 15 of every year.[2] The Board is now issuing a new final rule to set the CMP levels pursuant to the required annual adjustment for 2020. The Board will apply these adjusted maximum penalty levels to any penalties assessed on or after January 14, 2020, whose associated violations occurred on or after November 2, 2015. Penalties assessed for violations occurring prior to November 2, 2015 will be subject to the amounts set in the Board's 2012 adjustment pursuant to the FCPIA Act.[3]

    Under the 2015 Act, the annual adjustment to be made for 2020 is the percentage by which the Consumer Price Index for the month of October 2019 exceeds the Consumer Price Index for the month of October 2018. On December 16, 2019, as directed by the 2015 Act, the Office of Management and Budget (OMB) issued guidance to affected agencies on implementing the required annual adjustment which included the relevant inflation multiplier.[4] Using OMB's multiplier, the Board calculated the adjusted penalties for its CMPs, rounding the penalties to the nearest dollar.[5]

    Administrative Procedure Act

    The 2015 Act states that agencies shall make the annual adjustment “notwithstanding section 553 of title 5, United States Code.” Therefore, this rule is not subject to the provisions of the Administrative Procedure Act (the “APA”), 5 U.S.C. 553, requiring notice, public participation, and a deferred effective date.

    Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires a regulatory flexibility analysis only for rules for which an agency is required to publish a general notice of proposed rulemaking. Because the 2015 Act states that agencies' annual adjustments are to be made notwithstanding section 553 of title 5 of United States Code—the APA section requiring notice of proposed rulemaking—the Board is not publishing a notice of proposed rulemaking. Therefore, the Regulatory Flexibility Act does not apply.

    Paperwork Reduction Act

    There is no collection of information required by this final rule that would be subject to the Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq.

    Start List of Subjects

    List of Subjects in 12 CFR Part 263

    • Administrative practice and procedure
    • Claims
    • Crime
    • Equal access to justice
    • Lawyers
    • Penalties
    End List of Subjects

    Authority and Issuance

    For the reasons set forth in the preamble, the Board amends 12 CFR part 263 to read as follows:

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    PART 263—RULES OF PRACTICE FOR HEARINGS

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    1. The authority citation for part 263 continues to read as follows:

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    Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 248, 324, 334, 347a, 504, 505, 1464, 1467, 1467a, 1817(j), 1818, 1820(k), 1829, 1831o, 1831p-1, 1832(c), 1847(b), 1847(d), 1884, 1972(2)(F), 3105, 3108, 3110, 3349, 3907, 3909(d), 4717; 15 U.S.C. 21, 78l(i), 78o-4, 78o-5, 78u-2; 1639e(k); 28 U.S.C. 2461 note; 31 U.S.C. 5321; and 42 U.S.C. 4012a.

    End Authority Start Amendment Part

    2. Section 263.65 is revised to read as follows:

    End Amendment Part
    Civil money penalty inflation adjustments.

    (a) Inflation adjustments. In accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990, the Board has set forth in paragraph (b) of this section the adjusted maximum amounts for each civil money penalty provided by law within the Board's jurisdiction. The authorizing statutes contain the complete provisions under which the Board may seek a civil money penalty. The adjusted civil money penalties apply only to penalties assessed on or after January 14, 2020, whose associated violations occurred on or after November 2, 2015.

    (b) Maximum civil money penalties. The maximum (or, in the cases of 12 U.S.C. 334 and 1832(c), fixed) civil money penalties as set forth in the Start Printed Page 2008referenced statutory sections are set forth in the table in this paragraph (b).

    Table 1 to Paragraph (b)

    StatuteAdjusted civil money penalty
    12 U.S.C. 324:
    Inadvertently late or misleading reports, inter alia$4,098
    Other late or misleading reports, inter alia40,979
    Knowingly or reckless false or misleading reports, inter alia2,048,915
    12 U.S.C. 334297
    12 U.S.C. 374a297
    12 U.S.C. 504:
    First Tier10,245
    Second Tier51,222
    Third Tier2,048,915
    12 U.S.C. 505:
    First Tier10,245
    Second Tier51,222
    Third Tier2,048,915
    12 U.S.C. 1464(v)(4)4,098
    12 U.S.C. 1464(v)(5)40,979
    12 U.S.C. 1464(v)(6)2,048,915
    12 U.S.C. 1467a(i)(2)51,222
    12 U.S.C. 1467a(i)(3)51,222
    12 U.S.C. 1467a(r):
    First Tier4,098
    Second Tier40,979
    Third Tier2,048,915
    12 U.S.C. 1817(j)(16):
    First Tier10,245
    Second Tier51,222
    Third Tier2,048,915
    12 U.S.C. 1818(i)(2):
    First Tier10,245
    Second Tier51,222
    Third Tier2,048,915
    12 U.S.C. 1820(k)(6)(A)(ii)337,016
    12 U.S.C. 1832(c)2,976
    12 U.S.C. 1847(b)51,222
    12 U.S.C. 1847(d):
    First Tier4,098
    Second Tier40,979
    Third Tier2,048,915
    12 U.S.C. 1884297
    12 U.S.C. 1972(2)(F):
    First Tier10,245
    Second Tier51,222
    Third Tier2,048,915
    12 U.S.C. 3110(a)46,825
    12 U.S.C. 3110(c):
    First Tier3,747
    Second Tier37,458
    Third Tier1,872,957
    12 U.S.C. 3909(d)2,549
    15 U.S.C. 78u-2(b)(1):
    For a natural person9,639
    For any other person96,384
    15 U.S.C. 78u-2(b)(2):
    For a natural person96,384
    For any other person481,920
    15 U.S.C. 78u-2(b)(3):
    For a natural person192,768
    For any other person963,837
    15 U.S.C. 1639e(k)(1)11,767
    15 U.S.C. 1639e(k)(2)23,533
    42 U.S.C. 4012a(f)(5)2,226
    Start Signature
    Start Printed Page 2009

    By order of the Board of Governors of the Federal Reserve System, under delegated authority, January 6, 2020.

    Margaret McCloskey Shanks,

    Deputy Secretary of the Board.

    End Signature End Supplemental Information

    Footnotes

    1.  Public Law 114-74, 129 Stat. 599 (2015) (codified at 28 U.S.C. 2461 note).

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    3.  77 FR 68680 (Nov. 16, 2012).

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    4.  OMB Memorandum M-20-05, Implementation of Penalty Inflation Adjustments for 2020, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 16, 2019).

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    5.  Under the 2015 Act and implementing OMB guidance, agencies are not required to make an adjustment to a CMP if, during the 12 months preceding the required adjustment, such penalty increased due to a law other than the 2015 Act by an amount greater than the amount of the required adjustment. No other laws have adjusted the CMPs within the Board's jurisdiction during the preceding 12 months.

    Back to Citation

    [FR Doc. 2020-00161 Filed 1-13-20; 8:45 am]

    BILLING CODE 6210-01-P

Document Information

Effective Date:
1/14/2020
Published:
01/14/2020
Department:
Federal Reserve System
Entry Type:
Rule
Action:
Final rule.
Document Number:
2020-00161
Dates:
This final rule is effective on January 14, 2020.
Pages:
2007-2009 (3 pages)
Docket Numbers:
Docket No. R-1693
Topics:
Administrative practice and procedure, Claims, Crime, Equal access to justice, Lawyers, Penalties
PDF File:
2020-00161.pdf
CFR: (1)
12 CFR 263.65