Collection of Civil Money Penalty Debt
| Published date | 11 January 2021 |
| Citation | 86 FR 1740 |
| Record Number | 2020-27955 |
| Section | Rules and Regulations |
| Court | Federal Deposit Insurance Corporation |
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Federal Register / Vol. 86, No. 6 / Monday, January 11, 2021 / Rules and Regulations
1
See Public Law 104–134, 110 Stat. 1321–358
(codified at 31 U.S.C. 3701 et seq.).
T
ABLE
2
TO
P
ARAGRAPH
(b)—Continued
If the level of activity in the
report was: And the report was filed late, the civil money penalty is: Or the report was not filed, the civil money penalty is:
$5,000–$9,999.99 ................ [$141 + ($13 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $844 × [1 + (.25 × Number of previous violations)].
$10,000–24,999.99 .............. [$211 + ($13 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $1267 × [1 + (.25 × Number of previous violations)].
$25,000–49,999.99 .............. [$450 + ($36 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $1970 × [1 + (.25 × Number of previous violations)].
$50,000–74,999.99 .............. [$674 + ($113 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $4489 × [1 + (.25 × Number of previous violations)].
$75,000–99,999.99 .............. [$896 + ($151 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $5986 × [1 + (.25 × Number of previous violations)].
$100,000–149,999.99 .......... [$1347 + ($187 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $7482 × [1 + (.25 × Number of previous violations)].
$150,000–199,999.99 .......... [$1796 + ($224 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $8978 × [1 + (.25 × Number of previous violations)].
$200,000–249,999.99 .......... [$2245 + ($261 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $11,224 × [1 + (.25 × Number of previous violations)].
$250,000–349,999.99 .......... [$3367 + ($298 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $13,468 × [1 + (.25 × Number of previous violations)].
$350,000–449,999.99 .......... [$4489 + ($298 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $14,966 × [1 + (.25 × Number of previous violations)].
$450,000–549,999.99 .......... [$5612 + ($298 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $16,461 × [1 + (.25 × Number of previous violations)].
$550,000–649,999.99 .......... [$6735 + ($298 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $17,958 × [1 + (.25 × Number of previous violations)].
$650,000–749,999.99 .......... [$7857 + ($298 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $19,455 × [1 + (.25 × Number of previous violations)].
$750,000–849,999.99 .......... [$8978 + ($298 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $20,951 × [1 + (.25 × Number of previous violations)].
$850,000–949,999.99 .......... [$10,101 + ($298 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $22,446 × [1 + (.25 × Number of previous violations)].
$950,000 or over .................. [$11,224 + ($298 × Number of days late)] × [1 + (.25 ×
Number of previous violations)]. $23,944 × [1 + (.25 × Number of previous violations)].
1
The civil money penalty for a respondent who does not have any previous violations will not exceed the level of activity in the report.
(c) If the respondent fails to file a
required report and the Commission
cannot calculate the level of activity
under paragraph (d) of this section, then
the civil money penalty shall be $8,231.
* * * * *
§ 111.44 [Amended]
■4. Amend § 111.44(a)(1) by removing
‘‘$149’’ and adding in its place ‘‘$151’’.
Dated: December 30, 2020.
On behalf of the Commission.
Ellen L. Weintraub,
Commissioner, Federal Election Commission.
[FR Doc. 2020–29184 Filed 1–8–21; 8:45 am]
BILLING CODE 6715–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 313
RIN 3064–AF25
Collection of Civil Money Penalty Debt
AGENCY
: Federal Deposit Insurance
Corporation.
ACTION
: Final rule.
SUMMARY
: The Federal Deposit
Insurance Corporation (FDIC) is
amending the FDIC’s Procedures for
Corporate Debt Collection to include
delinquent civil money penalties within
the debt covered by those procedures.
DATES
: The final rule is effective on
February 10, 2021.
FOR FURTHER INFORMATION CONTACT
:
Graham N. Rehrig, Senior Attorney
(202) 898–3829, grehrig@fdic.gov;
Gabrielle A.J. Beam, Counsel (Team
Leader) (816) 234–8503, gabeam@
fdic.gov; or Michael P. Farrell, Counsel
(202) 898–3853, mfarrell@fdic.gov.
SUPPLEMENTARY INFORMATION
:
I. Policy Objectives
The Debt Collection Improvement Act
of 1996 (DCIA) requires Federal
agencies to collect debts owed to the
United States in accordance with
regulations that either adopt, or at least
are consistent with, standards
prescribed by the Department of Justice
(DOJ) and Department of the Treasury
(Treasury).
1
Treasury has issued
regulations applicable to collection
under the DCIA, and these regulations,
known as the Federal Claims Collection
Standards (FCCS), became effective on
December 22, 2000. The purpose of the
DCIA is to enhance the efficiency and
effectiveness of the Federal
Government’s efforts to collect debt
owed to the United States. A principal
feature of the DCIA was the creation of
the Treasury Offset Program (TOP), a
Government-wide database of
delinquent debtors that offsets (reduces)
Federal payments to recipients who also
owe delinquent debt to the United
States and that remits the offset amount
to the creditor agency.
The FDIC is amending its regulations,
in accordance with the DCIA, to add the
collection of civil money penalty (CMP)
debt to the FDIC’s existing debt-
collection regulations found in 12 CFR
part 313. Part 313 does not currently
provide for collection of CMP debt. The
amendments would allow the FDIC to
refer debts arising from its enforcement-
related activities to Treasury for
collection, thereby improving the
effectiveness of the FDIC’s debt-
collection efforts.
II. Background
In 2002, the FDIC, in compliance with
the DCIA, promulgated 12 CFR part 313
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2
See 67 FR 48525 (July 25, 2002).
3
71 FR 75659 (Dec. 18, 2006).
4
12 CFR 313.1(c)(1)–(2).
5
The FDIC assesses CMPs under the Federal
Deposit Insurance Act, 12 U.S.C. 1818(i), and a
variety of other statutes. See, 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); and 42 U.S.C. 4012a(f)
(authorizing the FDIC to impose CMPs for pattern
or practice violations of the Flood Disaster
Protection Act).
6
12 CFR 313.1(c)(3).
7
37 U.S.C. 3701(b)(1).
governing the collection of certain debts
owed to the FDIC in its corporate
capacity by Federal employees,
including FDIC employees, and certain
third parties.
2
The FDIC amended part
313 in 2006 to include criminal
restitution debt.
3
Part 313, in its present
form, applies only to debts owed to and
payments made by the FDIC acting in its
corporate capacity, and criminal
restitution debt owed to the FDIC in
either its corporate capacity or its
receivership capacity.
4
The DCIA authorizes the FDIC to
collect delinquent CMP debts that arise
from its supervision and enforcement
functions,
5
but the current part 313 does
not apply—aside from criminal
restitution debt noted above—to ‘‘debts
owed to or payments made by the FDIC
in connection with the FDIC’s
liquidation, supervision, enforcement,
or insurance responsibilities.’’
6
III. Discussion of the Amendments to
Part 313
The rule amends FDIC regulations to
provide for the collection of CMP debt.
It will do so by adopting existing
Treasury regulations concerning debt-
collection procedures as to the
collection of CMP debt. It will improve
the effectiveness of the FDIC’s debt-
collection efforts, primarily by allowing
the FDIC to refer debts arising from its
enforcement-related activities to
Treasury for collection. The rule will
not affect the FDIC’s existing authority
under part 313 to collect other forms of
debt, including debt owed to the FDIC
in its corporate capacity or for the
collection of criminal restitution debt.
The legal authority for the
amendments is found, in part, in the
DCIA itself. The DCIA’s definition of
‘‘debt’’ includes ‘‘any amount of funds
or property that has been determined by
an appropriate official of the Federal
Government to be owed to the United
States by a person, organization or
entity other than another Federal
agency.’’
7
The FDIC is amending part
313 in accordance with the FDIC’s
authority under 12 U.S.C. 1819(a) to
prescribe rules and regulations
governing its operations.
Accordingly, the FDIC is amending
part 313 as follows:
Section 313.1 (Scope) is revised to
include CMP debt in part 313. This
section also notes that subparts B
through G of part 313 do not apply to
the collection of CMP debt.
Section 313.3 (Definitions) is
amended to include CMP debtors among
the list of debtors, under paragraph (u),
to whom a creditor agency (the FDIC)
may send a written notice that, among
other statements, claims a debt and
informs the debtor that the creditor
agency intends to collect the debt by
administrative offset. The rule makes a
technical revision to paragraph (d) to
substitute ‘‘the Bureau of the Fiscal
Service’’ as the successor Treasury
entity to ‘‘FMS’’ (Treasury’s former
Financial Management Service) and to
note that the FDIC has the statutory
authority, under 12 U.S.C. 1818(i)(2)(F),
to compromise, modify, or remit any
CMP that the FDIC may assess or has
already assessed under 12 U.S.C.
1818(i)(2)(A)–(C). Section 313.3 is also
revised at paragraphs (j), (m), (n), and
(q) to include three divisions of the
FDIC, as well as the directors of those
divisions (or their designees), since the
enforcement and supervisory activities
of those divisions may result in the
assessment of CMPs.
Section 313.4 (Delegations of
authority) contains technical
amendments to clarify the following
delegations: (1) Authority to collect
debt, other than criminal restitution
debt and CMP debt, on behalf of the
FDIC in its corporate capacity is
delegated to the Director of the Division
of Administration or Director of the
Division of Finance, as applicable, or to
the applicable Director’s designee; and
(2) authority to collect criminal
restitution debt on behalf of the FDIC in
either its receivership or corporate
capacity is delegated to the Director of
the Division of Resolutions and
Receiverships, or to her or his designee.
The rule creates a new part 313,
subpart H, which concerns the
collection of CMP debt. Section 313.181
(Scope) states that subpart H establishes
FDIC procedures for the collection of
CMP debt. Section 313.182 (Purpose)
notes that the purpose of subpart H is
to implement Federal statutes and
regulatory standards authorizing the
FDIC to collect delinquent CMPs.
Section 313.183 (Definitions) indicates
that the definitions provided at section
313.3 apply to subpart H to the extent
they are applicable.
Section 313.184 outlines how the
FDIC will collect CMP debt. Paragraph
(a) states that the FDIC will follow
Treasury regulations set forth at 31 CFR
part 285, as applicable and consistent
with subpart H, for the collection of
CMP debt, including centralized offset
of Federal payments to collect non-tax
debts that may be owed to the FDIC.
Paragraph (b) notes that nothing in
subpart H shall be construed to require
the FDIC to provide duplicate notice or
other procedural protections that have
already been provided or afforded to a
CMP debtor in the course of
administrative or judicial litigation or
otherwise. Paragraph (c) says that, for
CMP debtors, and for purposes of 31
U.S.C. 3716(b)(1), the FDIC adopts
without change the regulations on
collection by administrative offset set
forth at 31 CFR 901.3 and other relevant
sections of the FCCS applicable to such
offset, to the extent those regulations are
consistent with subpart H. Finally,
paragraph (d) states that nothing in
subpart H precludes the collection of
debts through any other available means
or precludes the FDIC from engaging in
litigation or the compromise of debt as
provided under 12 U.S.C. 1818(i) or any
other applicable law or regulation.
IV. Expected Effects
The FDIC is amending part 313 in
accordance with the FDIC’s authority
under 12 U.S.C. 1819(a) to prescribe
rules and regulations governing its
operations. The rule would not directly
affect any FDIC-supervised institutions.
The rule could indirectly affect FDIC-
insured instructions and individuals
who are delinquent with respect to
CMPs that have been assessed against
them by the FDIC. According to the
FDIC’s information, the sum of
delinquent CMPs owed to the FDIC
amounts to approximately $1 million.
The delinquent CMP funds represent a
preexisting obligation owed by the
individuals or institutions; therefore,
the rule will have no effect on these
obligations. However, the rule, as
amended, could increase the portion of
these obligations that is ultimately
collected under part 313.
V. Alternatives Considered
As discussed previously, part 313
does not currently apply to the
collection of delinquent CMPs. The
FDIC believes that it can increase the
effectiveness of its delinquent CMP
collection efforts through the use of
administrative offset. The DCIA states
that agencies, before collecting a claim
by administrative offset, must either
adopt the FCCS without change or
prescribe agency regulations for
collecting debts by administrative offset
that are consistent with the FCCS. The
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8
5 U.S.C. 553.
9
5 U.S.C. 553(b)(A).
10
5 U.S.C. 601 et seq.
11
Under regulations issued by the Small Business
Administration, a small entity includes a depository
institution, bank holding company, or savings and
loan holding company with total assets of $600
million or less and trust companies with total assets
of $41.5 million or less. See 13 CFR 121.201.
12
44 U.S.C. 3501–3521.
13
12 U.S.C. 4802(a).
14
Id. at 4802(b).
15
5 U.S.C. 801 et seq.
16
5 U.S.C. 804(2).
17
Public Law 106–102, section 722, 113 Stat.
1338, 1471 (1999).
FDIC has considered these two
approaches and has decided to adopt
the FCCS without change for the
collection of delinquent CMPs.
VI. Administrative Law Matters
A. Administrative Procedure Act
The FDIC is issuing this final rule
without prior notice and the
opportunity for public comment
ordinarily prescribed by the
Administrative Procedure Act (APA).
8
Pursuant to section 553(b)(A) of the
APA, general notice and the opportunity
for public comment are not required
with respect to a rule of ‘‘agency
organization, procedure, or practice.’’
9
As discussed above, this final rule
amends the FDIC regulations to provide
for the collection of CMP debt. It will do
so by adopting existing Treasury
regulations concerning debt-collection
procedures as to the collection of CMP
debt. These amendments relate solely to
agency procedure and practice. For this
reason, the FDIC finds that general
notice and opportunity for public
comment are not required under the
APA.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act
(RFA)
10
requires an agency to consider
whether the rules it proposes will have
a significant economic impact on a
substantial number of small entities.
11
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). As discussed previously,
consistent with section 553(b)(A) of the
APA, the FDIC has determined that
general notice and opportunity for
public comment is not required as the
final rule is a rule of agency procedure
and practice. Accordingly, the FDIC has
concluded that the RFA’s requirements
relating to initial and final regulatory
flexibility analysis do not apply.
C. Paperwork Reduction Act
In accordance with the requirements
of the Paperwork Reduction Act of 1995
(PRA),
12
the FDIC may not conduct or
sponsor, and a respondent is not
required to respond to, an information
collection unless it displays a currently-
valid Office of Management and Budget
(OMB) control number. The final rule
does not create new or modify existing
information collection requirements.
Accordingly, no submission to OMB
will be made with respect to the final
rule.
D. Riegle Community Development and
Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the
Riegle Community Development and
Regulatory Improvement Act
(RCDRIA),
13
in determining the effective
date and administrative compliance
requirements for new regulations that
impose additional reporting, disclosure,
or other requirements on insured
depository institutions (IDIs), each
Federal banking agency must consider,
consistent with principles of safety and
soundness and the public interest, any
administrative burdens that such
regulations would place on depository
institutions, including small depository
institutions, and customers of
depository institutions, as well as the
benefits of such regulations. In addition,
section 302(b) of RCDRIA requires new
regulations and amendments to
regulations that impose additional
reporting, disclosures, or other new
requirements on IDIs generally to take
effect on the first day of a calendar
quarter that begins on or after the date
on which the regulations are published
in final form.
14
Because the final rule
does not impose any reporting,
disclosure, or other new requirements
on insured depository institutions, the
requirements of RCDRIA do not apply.
E. Congressional Review Act
For purposes of the Congressional
Review Act (CRA), OMB makes a
determination as to whether a final rule
constitutes a ‘‘major’’ rule.
15
If a rule is
deemed a ‘‘major rule’’ by the OMB, the
CRA generally provides that the rule
may not take effect until at least 60 days
following its publication.
The CRA defines a ‘‘major rule’’ as
any rule that the Administrator of the
Office of Information and Regulatory
Affairs of the OMB finds has resulted in
or is likely to result in (1) an annual
effect on the economy of $100,000,000
or more; (2) a major increase in costs or
prices for consumers, individual
industries, Federal, State, or local
government agencies or geographic
regions, or (3) significant adverse effects
on competition, employment,
investment, productivity, innovation, or
on the ability of United States-based
enterprises to compete with foreign-
based enterprises in domestic and
export markets.
16
The OMB has determined that this
final rule is not a major rule for
purposes of the CRA. As required by the
CRA, the FDIC will submit the final rule
and other appropriate reports to
Congress and the Government
Accountability Office for review.
F. Plain Language
Section 722 of the Gramm-Leach-
Bliley Act
17
requires each Federal
banking agency to use plain language in
all of its proposed and final rules
published after January 1, 2000. The
FDIC has sought to present the final rule
in a simple and straightforward manner.
List of Subjects in 12 CFR Part 313
Administrative practice and
procedure, Authority delegations
(Government agencies), Claims,
Government employees, Wages.
Authority and Issuance
For the reasons stated in the preamble
and under the authority of 12 U.S.C.
1819 (Seventh and Tenth), the FDIC
amends 12 CFR part 313 as follows:
PART 313—PROCEDURES FOR
COLLECTION OF CORPORATE DEBT,
CRIMINAL RESTITUTION DEBT, AND
CIVIL MONEY PENALTY DEBT
■1. Revise the authority citation for part
313 to read as follows:
Authority: 5 U.S.C. 5514; 12 U.S.C.
1818(i), 1819(a); Pub. L. 104–134, 110 Stat.
1321 (31 U.S.C. 3701, 3711, 3716).
■2. Revise the heading for part 313 to
read as set forth above.
■3. Revise subpart A to read as follows:
Subpart A—Scope, Purpose, Definitions,
and Delegations of Authority
Sec.
313.1 Scope.
313.2 Purpose.
313.3 Definitions.
313.4 Delegations of authority.
313.5 through 313.19 [Reserved]
Subpart A—Scope, Purpose,
Definitions, and Delegations of
Authority
§ 313.1 Scope.
This part establishes the Federal
Deposit Insurance Corporation (FDIC)
procedures for the collection of certain
debts owed to the United States.
(a) This part applies to collections by
the FDIC from:
(1) Federal employees who are
indebted to the FDIC;
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(2) Employees of the FDIC who are
indebted to other agencies;
(3) Other persons, organizations, or
entities that are indebted to the FDIC,
except those excluded in paragraph
(b)(3) of this section; and
(4) Civil money penalty debtors
assessed civil money penalties by the
FDIC.
(b) This part does not apply:
(1) To debts or claims arising under
the Internal Revenue Code of 1986 (Title
26, U.S. Code), the Social Security Act
(42 U.S.C. 301 et seq.), or the tariff laws
of the United States;
(2) To a situation to which the
Contract Disputes Act (41 U.S.C. 601 et
seq.) applies; or
(3) In any case where collection of a
debt is explicitly provided for or
prohibited by another statute.
(c) This part applies only to:
(1) Debts owed to and payments made
by the FDIC acting in its corporate
capacity, that is, in connection with
employee matters such as travel-related
claims and erroneous overpayments,
contracting act ivities involving
corporate operations, debts related to
requests to the FDIC for documents
under the Freedom of Information Act
(FOIA), or where a request for an offset
is received by the FDIC from another
Federal agency;
(2) Criminal restitution debt owed to
the FDIC in either its corporate capacity
or its receivership capacity; and
(3) Civil money penalties arising out
of the FDIC’s activities in its supervision
or enforcement capacities.
(4) With the exception of criminal
restitution debt noted in paragraph
(c)(2) of this section and civil money
penalty debt noted in paragraph (c)(3) of
this section, this part does not apply to
debts owed to or payments made by the
FDIC in connection with the FDIC’s
liquidation, supervision, enforcement,
or insurance responsibilities, nor does it
limit or affect the FDIC’s authority with
respect to debts or claims under 12
U.S.C. 1819(a) and 1820(a).
(d) Subparts B through G of this part
do not apply to the collection of civil
money penalty debt.
(e) Nothing in this part precludes the
compromise, suspension, or termination
of collection actions, where appropriate,
under: Standards implementing the
Debt Collection Improvement Act
(DCIA) (31 U.S.C. 3711 et seq.); the
Federal Claims Collection Standards
(FCCS) (31 CFR chapter IX); or any other
applicable law.
§ 313.2 Purpose.
(a) The purpose of this part is to
implement Federal statutes and
regulatory standards authorizing the
FDIC to collect debts owed to the United
States. This part is consistent with the
following Federal statutes and
regulations:
(1) DCIA at 31 U.S.C. 3711 (collection
and compromise of claims); section
3716 (administrative offset), section
3717 (interest and penalty on claims),
and section 3718 (contracts for
collection services);
(2) 5 U.S.C. 5514 (salary offset);
(3) 5 U.S.C. 5584 (waiver of claims for
overpayment);
(4) 31 CFR chapter IX (Federal Claims
Collection Standards);
(5) 5 CFR part 550, subpart K (salary
offset);
(6) 31 U.S.C. 3720D and 31 CFR
285.11 (administrative wage
garnishment);
(7) 26 U.S.C. 6402(d), 31 U.S.C.
3720A, and 31 CFR 285.2 (tax refund
offset); and
(8) 5 CFR 831.1801 through 1808 (U.S.
Office of Personnel Management (OPM)
offset).
(b) Collectively, the statutes and
regulations in paragraph (a) of this
section prescribe the manner in which
Federal agencies should proceed to
establish the existence and validity of
debts owed to the Federal Government
and describe the remedies available to
agencies to offset valid debts.
§ 313.3 Definitions.
Except where the context clearly
indicates otherwise or where the term is
defined elsewhere in this subpart, the
following definitions shall apply to this
subpart.
(a) Agency means a department,
agency, court, court administrative
office, or instrumentality in the
executive, judicial, or legislative branch
of Government, including Government
corporations.
(b) Board means the Board of
Directors of the FDIC.
(c) Centralized administrative offset
means the mandatory referral to the
Secretary of the Treasury by a creditor
agency of a past due debt which is more
than 180 days delinquent, for the
purpose of collection under the
Treasury’s centralized offset program.
(d) Certification means a written
statement transmitted from a creditor
agency to a paying agency for purposes
of administrative or salary offset, to
Treasury’s Bureau of the Fiscal Service
for offset or to the Secretary of the
Treasury for centralized administrative
offset. The certification confirms the
existence and amount of the debt and
verifies that required procedural
protections have been afforded the
debtor. Where the debtor requests a
hearing on a claimed debt, the decision
by a hearing official or administrative
law judge constitutes a certification.
(e) Chairman means the Chairman of
the FDIC.
(f) Compromise means the settlement
or forgiveness of a debt under 31 U.S.C.
3711 or 12 U.S.C. 1818(i)(2)(F) (for civil
money penalties), in accordance with
standards set forth in the FCCS and
applicable Federal law.
(g) Creditor agency means an agency
of the Federal Government to which the
debt is owed, or a debt collection center
when acting on behalf of a creditor
agency to collect a debt.
(h) Debt means an amount owed to
the United States from loans insured or
guaranteed by the United States and all
other amounts due the United States
from fees, leases, rents, royalties,
services, sales of real or personal
property, overpayments, penalties,
damages, interest, restitution, fines and
forfeitures, and all other similar sources.
For purposes of this part, a debt owed
to the FDIC constitutes a debt owed to
the United States.
(i) Debt collection center means the
Department of the Treasury or other
Government agency or division
designated by the Secretary of the
Treasury with authority to collect debts
on behalf of creditor agencies in
accordance with 31 U.S.C. 3711(g).
(j) Director means the Director of the
Division of Finance (DOF), the Director
of the Division of Administration
(DOA), the Director of the Division of
Resolutions and Receiverships (DRR),
the Director of the Division of Risk
Management Supervision (RMS), the
Director of the Division of Depositor and
Consumer Protection (DCP), or the
Director of the Division of Complex
Institution Supervision and Resolution
(CISR), as applicable, or the applicable
Director’s designee.
(k) Disposable pay means that part of
current adjusted basic pay, special pay,
incentive pay, retired pay, retainer pay,
and, in the case of an employee not
entitled to adjusted basic pay, other
authorized pay, remaining for each pay
period after the deduction of any
amount required by law to be withheld.
The FDIC shall allow the following
deductions in determining the amount
of disposable pay that is subject to
salary offset:
(1) Federal employment taxes;
(2) Federal, state, or local income
taxes to the extent authorized or
required by law, but no greater than
would be the case if the employee
claimed all dependents to which he or
she is entitled and such additional
amounts for which the employee
presents evidence of a tax obligation
supporting the additional withholding;
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Federal Register / Vol. 86, No. 6 / Monday, January 11, 2021 / Rules and Regulations
(3) Medicare deductions;
(4) Health insurance premiums;
(5) Normal retirement contributions,
including employee contributions to the
Thrift Savings Plan or the FDIC 401(k)
Plan;
(6) Normal life insurance premiums
(e.g., Serviceman’s Group Life Insurance
and ‘‘Basic Life’’ Federal Employee’s
Group Life Insurance premiums), not
including amounts deducted for
supplementary coverage;
(7) Amounts mandatorily withheld for
the United States Soldiers’ and
Airmen’s Home; and
(8) Fines and forfeiture ordered by a
court-martial or by a commanding
officer.
(l) Division of Administration (DOA)
means the Division of Administration of
the FDIC, or any successor division of
the FDIC.
(m) Division of Complex Institution
Supervision and Resolution (CISR)
means the Division of Complex
Institution Supervision and Resolution
of the FDIC, or any successor division
of the FDIC.
(n) Division of Depositor and
Consumer Protection (DCP) means the
Division of Depositor and Consumer
Protection of the FDIC, or any successor
division of the FDIC.
(o) Division of Finance (DOF) means
the Division of Finance of the FDIC, or
any successor division of the FDIC.
(p) Division of Resolutions and
Receiverships (DRR) means the Division
of Resolutions and Receiverships of the
FDIC, or any successor division of the
FDIC.
(q) Division of Risk Management
Supervision (RMS) means the Division
of Risk Management Supervision of the
FDIC, or any successor division of the
FDIC.
(r) Federal Claims Collection
Standards (FCCS) means standards
published at 31 CFR chapter IX.
(s) Garnishment means the process of
withholding amounts from the
disposable pay of a person employed
outside the Federal Government, and
the paying of those amounts to a
creditor in satisfaction of a withholding
order.
(t) Hearing official means an
administrative law judge or other
individual authorized to conduct a
hearing and issue a final decision in
response to a debtor’s request for
hearing. A hearing official may not be
under the supervision or control of the
Chairman or FDIC Board when the FDIC
is the creditor agency.
(u) Notice of Intent to Offset or Notice
of Intent means a written notice from a
creditor agency to an employee,
organization, entity, restitution debtor,
or civil money penalty debtor that
claims a debt and informs the debtor
that the creditor agency intends to
collect the debt by administrative offset.
The notice also informs the debtor of
certain procedural rights with respect to
the claimed debt and offset.
(v) Notice of Salary Offset means a
written notice from a paying agency to
its employee informing the employee
that salary offset to collect a debt due to
the creditor agency will begin at the
next officially established pay interval.
The paying agency transmits this notice
to its employee after receiving a
certification from the creditor agency.
(w) Paying agency means the agency
of the Federal Government that employs
the individual who owes a debt to an
agency of the Federal Government. The
same agency may be both the creditor
agency and the paying agency.
(x) Salary offset means an
administrative offset to collect a debt
under 5 U.S.C. 5514 by deduction(s) at
one or more officially established pay
intervals from the current pay account
of an employee without his or her
consent.
(y) Waiver means the cancellation,
remission, forgiveness or non-recovery
of a debt allegedly owed by an employee
to an agency, as authorized or required
by 5 U.S.C. 5584 or any other law.
(z) Withholding order means any
order for withholding or garnishment of
pay issued by an agency, or judicial or
administrative body. For purposes of
administrative wage garnishment, the
terms ‘‘wage garnishment order’’ and
‘‘garnishment order’’ have the same
meaning as ‘‘withholding order.’’
§ 313.4 Delegations of authority.
Authority to conduct the following
activities is delegated as follows:
Authority to collect debt, other than
criminal restitution debt and civil
money penalty debt, on behalf of the
FDIC in its corporate capacity is
delegated to the Director of DOA or
Director of DOF, as applicable, or to the
applicable Director’s designee; and
authority to collect criminal restitution
debt on behalf of the FDIC in either its
receivership or corporate capacity is
delegated to the Director of DRR, or to
her or his designee. These individuals,
under the delegations in this section,
may do the following:
(a) Initiate and carry out the debt
collection process on behalf of the FDIC,
in accordance with the FCCS;
(b) Accept or reject compromise offers
and suspend or terminate collection
actions to the full extent of the FDIC’s
legal authority under 12 U.S.C. 1819(a)
and 1820(a), 31 U.S.C. 3711(a)(2), and
any other applicable statute or
regulation, provided, however, that no
such claim shall be compromised or
collection action terminated, except
upon the concurrence of the FDIC
General Counsel or his or her designee;
(c) Report to consumer reporting
agencies certain data pertaining to
delinquent debts, where appropriate;
(d) Use administrative offset
procedures, including salary offset, to
collect debts; and
(e) Take any other action necessary to
promptly and effectively collect debts
owed to the United States in accordance
with the policies contained herein and
as otherwise provided by law.
§§ 313.5 through 313.19 [Reserved]
■4. Add subpart H to read as follows:
Subpart H—Civil Money Penalty Debt
Sec.
313.181 Scope.
313.182 Purpose.
313.183 Definitions.
313.184 Collection of civil money penalty
debt.
313.185 through 313.190 [Reserved]
Subpart H—Civil Money Penalty Debt
§ 313.181 Scope.
This subpart establishes FDIC
procedures for the collection of civil
money penalty debt.
§ 313.182 Purpose.
The purpose of this subpart is to
implement Federal statutes and
regulatory standards authorizing the
FDIC to collect delinquent civil money
penalties.
§ 313.183 Definitions.
Except where the context clearly
indicates otherwise or where the term is
defined elsewhere in this subpart, the
definitions provided at § 313.3 apply to
this subpart.
§ 313.184 Collection of civil money penalty
debt.
(a) The FDIC will follow Department
of Treasury regulations set forth at 31
CFR part 285, as applicable and
consistent with this subpart, for the
collection of civil money penalty debt,
including centralized offset of Federal
payments to collect non-tax debts that
may be owed to the FDIC, under 31 CFR
285.5.
(b) Nothing in this subpart shall be
construed to require the FDIC to provide
duplicate notice or other procedural
protections that have already been
provided or afforded to a civil money
penalty debtor in the course of
administrative or judicial litigation or
otherwise.
(c) For civil money penalty debtors,
and for purposes of 31 U.S.C. 3716(b)(1),
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1
28 U.S.C. 2461 note.
the FDIC adopts without change the
regulations on collection by
administrative offset set forth at 31 CFR
901.3 and other relevant sections of the
Federal Claims Collection Standards
applicable to such offset, to the extent
those regulations are consistent with
this subpart.
(d) Nothing in this subpart precludes
the collection of debts through any other
available means or precludes the FDIC
from engaging in litigation or the
compromise of debt as provided under
12 U.S.C. 1818(i) or any other applicable
law or regulation.
§§ 313.185 through 313.190 [Reserved]
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on December 15,
2020.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2020–27955 Filed 1–8–21; 8:45 am]
BILLING CODE 6714–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 13
Office of the Secretary
14 CFR Part 383
Federal Aviation Administration
14 CFR Part 406
Saint Lawrence Seaway Development
Corporation
33 CFR Part 401
Maritime Administration
46 CFR Parts 221, 307, 340, and 356
Pipeline and Hazardous Materials
Safety Administration
49 CFR Parts 107, 171, and 190
Federal Railroad Administration
49 CFR Parts 209, 213, 214, 215, 216,
217, 218, 219, 220, 221, 222, 223, 224,
225, 227, 228, 229, 230, 231, 232, 233,
234, 235, 236, 237, 238, 239, 240, 241,
242, 243, 244, and 272
Federal Motor Carrier Safety
Administration
49 CFR Part 386
National Highway Traffic Safety
Administration
49 CFR Part 578
RIN 2105–AE90
Revisions to Civil Penalty Amounts
AGENCY
: Department of Transportation
(DOT or the Department).
ACTION
: Final rule.
SUMMARY
: In accordance with the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, this final rule provides the 2020
inflation adjustment to civil penalty
amounts that may be imposed for
violations of certain DOT regulations. In
additional, this final rule makes
conforming revisions to Federal Motor
Carrier Safety Administration
regulations to reflect inflationary
adjustments to the statutorily-mandated
civil penalties for violations of Federal
law.
DATES
: Effective January 11, 2021.
FOR FURTHER INFORMATION CONTACT
:
Analiese Marchesseault, Attorney-
Advisor, Office of the General Counsel,
U.S. Department of Transportation, 1200
New Jersey Ave. SE, Washington, DC
20590, analiese.marchesseault@dot.gov.
SUPPLEMENTARY INFORMATION
:
Authority for This Rulemaking
This rule implements the Federal
Civil Penalties Inflation Adjustment Act
of 1990 (FCPIAA), Public Law 101–410,
as amended by the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (2015 Act),
Public Law 114–74, 129 Stat. 599,
codified at 28 U.S.C. 2461 note. The
FCPIAA and the 2015 Act require
Federal agencies to adjust minimum and
maximum civil penalty amounts for
inflation to preserve their deterrent
impact. The 2015 Act amended the
formula and frequency of inflation
adjustments. It required an initial catch-
up adjustment in the form of an interim
final rule, followed by annual
adjustments of civil penalty amounts
using a statutorily mandated formula.
Section 4(b)(2) of the 2015 Act
specifically directs that the annual
adjustment be accomplished through
final rule without notice and comment.
This rule is effective immediately.
This rule also implements the
authority to assess civil penalties for
violations concerning the Drug and
Alcohol Clearinghouse, set forth in
section 34202 of the Moving Ahead for
Progress in the 21st Century Act (MAP–
21), Public Law 112–141, 126 Stat. 405,
codified at 49 U.S.C. 31306a(k)(1).
The Department’s authorities over the
specific civil penalty regulations being
amended by this rule are provided in
the preamble discussion below.
I. Background
On November 2, 2015, the President
signed into law the 2015 Act, which
amended the FCPIAA, to improve the
effectiveness of civil monetary penalties
and to maintain their deterrent effect.
The 2015 Act requires Federal agencies
to: (1) Adjust the level of civil monetary
penalties with an initial ‘‘catch-up’’
adjustment through an interim final rule
(IFR); and (2) make subsequent annual
adjustments for inflation.
The 2015 Act directed the Office of
Management and Budget (OMB) to issue
guidance on implementing the required
annual inflation adjustment no later
than December 15 of each year.
1
On
December 16, 2019, OMB released this
required guidance, in OMB
Memorandum M–20–05, which
provides instructions on how to
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