Rules of Practice for Hearings
| Published date | 06 February 2019 |
| Citation | 84 FR 2051 |
| Record Number | 2019-01068 |
| Section | Rules and Regulations |
| Court | Federal Reserve System |
Federal Register, Volume 84 Issue 25 (Wednesday, February 6, 2019)
[Federal Register Volume 84, Number 25 (Wednesday, February 6, 2019)]
[Rules and Regulations]
[Pages 2051-2052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01068]
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FEDERAL RESERVE SYSTEM
12 CFR Part 263
[Docket No. R-1647]
RIN 7100-AF36
Rules of Practice for Hearings
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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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 February 6, 2019.
FOR FURTHER INFORMATION CONTACT: Patrick M. Bryan, Assistant General
Counsel (202-974-7093), or Thomas O. Kelly, Senior Attorney (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.
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
2019. The Board will apply these adjusted maximum penalty levels to any
penalties assessed on or after February 6, 2019, 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\
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\1\ Public Law 114-74, 129 Stat. 599 (2015) (codified at 28
U.S.C. 2461 note).
\2\ 28 U.S.C. 2461 note, 4(b)(1).
\3\ 77 FR 68680 (Nov. 16, 2012).
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Under the 2015 Act, the annual adjustment to be made for 2019 is
the percentage by which the Consumer Price Index for the month of
October 2018 exceeds the Consumer Price Index for the month of October
2017. On December 14, 2018, 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
[[Page 2052]]
Board calculated the adjusted penalties for its CMPs, rounding the
penalties to the nearest dollar.\5\
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\4\ OMB Memorandum M-19-04, Implementation of Penalty Inflation
Adjustments for 2019, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (Dec. 14, 2018).
\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.
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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 the 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.
List of Subjects in 12 CFR Part 263
Administrative practice and procedure, Claims, Crime, Equal access
to justice, Lawyers, Penalties.
Authority and Issuance
For the reasons set forth in the preamble, the Board amends 12 CFR
part 263 to read as follows:
PART 263--RULES OF PRACTICE FOR HEARINGS
0
1. The authority citation for part 263 continues to read as follows:
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.
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2. Section 263.65 is revised to read as follows:
Sec. 263.65 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 February 6, 2019, whose associated violations
occurred on or after November 22, 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 referenced statutory sections are set forth in the table in this
paragraph (b).
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Adjusted civil
Statute money penalty
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12 U.S.C. 324...........................................
Inadvertently late or misleading reports, inter alia $4,027
Other late or misleading reports, inter alia........ 40,269
Knowingly or reckless false or misleading reports, 2,013,399
inter alia.........................................
12 U.S.C. 334........................................... 292
12 U.S.C. 374a.......................................... 292
12 U.S.C. 504...........................................
First Tier.......................................... 10,067
Second Tier......................................... 50,334
Third Tier.......................................... 2,013,399
12 U.S.C. 505...........................................
First Tier.......................................... 10,067
Second Tier......................................... 50,334
Third Tier.......................................... 2,013,399
12 U.S.C. 1464(v)(4).................................... 4,027
12 U.S.C. 1464(v)(5).................................... 40,269
12 U.S.C. 1464(v)(6).................................... 2,013,399
12 U.S.C. 1467a(i)(2)................................... 50,334
12 U.S.C. 1467a(i)(3)................................... 50,334
12 U.S.C. 1467a(r)......................................
First Tier.......................................... 4,027
Second Tier......................................... 340,269
Third Tier.......................................... 2,013,399
12 U.S.C. 1817(j)(16)...................................
First Tier.......................................... 10,067
Second Tier......................................... 50,334
Third Tier.......................................... 32,013,399
12 U.S.C. 1818(i)(2)....................................
First Tier.......................................... 10,067
Second Tier......................................... 50,334
Third Tier.......................................... 2,013,399
12 U.S.C. 1820(k)(6)(A)(ii)............................. 331,174
12 U.S.C. 1832(c)....................................... 32,924
12 U.S.C. 1847(b)....................................... 50,334
12 U.S.C. 1847(d).......................................
First Tier.......................................... 4,027
Second Tier......................................... 40,269
Third Tier.......................................... 2,013,399
12 U.S.C. 1884.......................................... 292
12 U.S.C. 1972(2)(F)....................................
First Tier.......................................... 10,067
Second Tier......................................... 50,334
Third Tier.......................................... 2,013,399
12 U.S.C. 3110(a)....................................... 46,013
12 U.S.C. 3110(c).......................................
First Tier.......................................... 3,682
Second Tier......................................... 36,809
Third Tier.......................................... 1,840,491
12 U.S.C. 3909(d)....................................... 2,505
15 U.S.C. 78u-2(b)(1)...................................
For a natural person................................ 9,472
For any other person................................ 94,713
15 U.S.C. 78u-2(b)(2)...................................
For a natural person................................ 94,713
For any other person................................ 473,566
15 U.S.C. 78u-2(b)(3)...................................
For a natural person................................ 189,427
For any other person................................ 947,130
15 U.S.C. 1639e(k)(1)................................... 11,563
15 U.S.C. 1639e(k)(2)................................... 23,125
42 U.S.C. 4012a(f)(5)................................... 2,187
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By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, January 29, 2019.
Ann Misback,
Secretary of the Board.
[FR Doc. 2019-01068 Filed 2-5-19; 8:45 am]
BILLING CODE 6210-01-P
