2024-00650: Rules of Practice for Hearings
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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.
The agency’s own summary, as published.
The rule, in full
1,268 words as published, January 12, 2024. View the original →
Federal Register, Volume 89 Issue 9 (Friday, January 12, 2024) [Federal Register Volume 89, Number 9 (Friday, January 12, 2024)] [Rules and Regulations] [Pages 2114-2116] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2024-00650] ======================================================================= ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM 12 CFR Part 263 [Docket No. R-1827] RIN 7100-AG74 Rules of Practice for Hearings
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 12, 2024.
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 TTY-TRS, please call 711 from any telephone, anywhere in the United States.
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 2024. The Board will apply these adjusted maximum penalty levels to any penalties assessed on or after [publication date], 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\ --------------------------------------------------------------------------- \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 68,680 (Nov. 16, 2012). --------------------------------------------------------------------------- Under the 2015 Act, the annual adjustment to be made for 2024 is the percentage by which the Consumer Price Index for the month of October 2023 exceeds the Consumer Price Index for the month of October 2022. On December 19, 2023, 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\ --------------------------------------------------------------------------- \4\ OMB Memorandum M-24-07, Implementation of Penalty Inflation Adjustments for 2024, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2023). \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. --------------------------------------------------------------------------- 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 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 [[Page 2115]] 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. 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. 0
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 January 12, 2024, 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 referenced statutory sections are set forth in the table in this paragraph (b). Table 1 to Paragraph (b) ------------------------------------------------------------------------ Adjusted civil Statute money penalty ------------------------------------------------------------------------ 12 U.S.C. 324: Inadvertently late or misleading reports, inter $4,899 alia........................................... Other late or misleading reports, inter alia.... 48,992 Knowingly or reckless false or misleading 2,449,575 reports, inter alia............................ 12 U.S.C. 334....................................... 356 12 U.S.C. 374a...................................... 356 12 U.S.C. 504: First Tier...................................... 12,249 Second Tier..................................... 61,238 Third Tier...................................... 2,449,575 12 U.S.C. 505: First Tier...................................... 12,249 Second Tier..................................... 61,238 Third Tier...................................... 2,449,575 12 U.S.C. 1464(v)(4)................................ 4,899 12 U.S.C. 1464(v)(5)................................ 48,992 12 U.S.C. 1464(v)(6)................................ 2,449,575 12 U.S.C. 1467a(i)(2)............................... 61,238 12 U.S.C. 1467a(i)(3)............................... 61,238 12 U.S.C. 1467a(r): First Tier...................................... 4,899 Second Tier..................................... 48,992 Third Tier...................................... 2,449,575 12 U.S.C. 1817(j)(16): First Tier...................................... 12,249 Second Tier..................................... 61,238 Third Tier...................................... 2,449,575 12 U.S.C. 1818(i)(2): First Tier...................................... 12,249 Second Tier..................................... 61,238 Third Tier...................................... 2,449,575 12 U.S.C. 1820(k)(6)(A)(ii)......................... 402,920 12 U.S.C. 1832(c)................................... 3,558 12 U.S.C. 1847(b)................................... 61,238 12 U.S.C. 1847(d): First Tier...................................... 4,899 Second Tier..................................... 48,992 Third Tier...................................... 2,449,575 12 U.S.C. 1884...................................... 356 12 U.S.C. 1972(2)(F): First Tier...................................... 12,249 Second Tier..................................... 61,238 Third Tier...................................... 2,449,575 12 U.S.C. 3110(a)................................... 55,981 12 U.S.C. 3110(c): [[Page 2116]] First Tier...................................... 4,480 Second Tier..................................... 44,783 Third Tier...................................... 2,239,210 12 U.S.C. 3909(d)................................... 3,047 15 U.S.C. 78u-2(b)(1): For a natural person............................ 11,524 For any other person............................ 115,231 15 U.S.C. 78u-2(b)(2) For a natural person............................ 115,231 For any other person............................ 576,158 15 U.S.C. 78u-2(b)(3) For a natural person............................ 230,464 For any other person............................ 1,152,314 15 U.S.C. 1639e(k)(1)............................... 14,069 15 U.S.C. 1639e(k)(2)............................... 28,135 42 U.S.C. 4012a(f)(5)............................... 2,661 ------------------------------------------------------------------------ By order of the Board of Governors of the Federal Reserve System, acting through the Secretary of the Board under delegated authority. Ann E. Misback, Secretary of the Board. [FR Doc. 2024-00650 Filed 1-11-24; 8:45 am] BILLING CODE 6210-01-P
What this changes
Amends 1 part of the Code of Federal Regulations — the standing rules this notice rewrites.
Rulemaking docket
We haven’t pulled this rulemaking’s full docket yet.
Documents
- Full text (Federal Register) · January 12, 2024
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