Rules of Practice for Hearings

1Public Law 114–74, 129 Stat. 599 (2015)
(codified at 28 U.S.C. 2461 note).
2 28 U.S.C. 2461 note, section 4(b)(1).
3 77 FR 68680 (Nov. 16, 2012).
4OMB Memorandum M–22–07, Implementation of Penalty Inflation Adjustments for 2022, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 15, 2021). 5Under 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. FEDERAL RESERVE SYSTEM 12 CFR Part 263 [Docket No. R–1759] RIN 7100–AG22 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 14, 2022. 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. You may also contact us at https:// www.federalreserve.gov/apps/ ContactUs/feedback.aspx, choose Staff Group: Regulations. 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 2022. The Board will apply these adjusted maximum penalty levels to any penalties assessed on or after January 14, 2022, 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 2022 is the percentage by which the Consumer Price Index for the month of October 2021 exceeds the Consumer Price Index for the month of October 2020. On December 15, 2021, 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 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. 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 as follows:
PART 263—RULES OF PRACTICE FOR
HEARINGS

• 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.
• 2. Section 263.65 is revised to read as
     follows:
     § 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 14, 2022, 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)
     Statute Adjusted civil money penalty
     12 U.S.C. 324:
     Inadvertently late or misleading reports, inter alia ....................................................................................................................... $4,404 Other late or misleading reports, inter alia ................................................................................................................................... 44,043 Knowingly or reckless false or misleading reports, inter alia ....................................................................................................... 2,202,123
     12 U.S.C. 334 ...................................................................................................................................................................................... 320
     12 U.S.C. 374a .................................................................................................................................................................................... 320
     12 U.S.C. 504:
     First Tier ....................................................................................................................................................................................... 11,011 Second Tier .................................................................................................................................................................................. 55,052 Third Tier ...................................................................................................................................................................................... 2,202,123 12 U.S.C. 505:
     First Tier ....................................................................................................................................................................................... 11,011 Second Tier .................................................................................................................................................................................. 55,052 Third Tier ...................................................................................................................................................................................... 2,202,123 12 U.S.C. 1464(v)(4) ........................................................................................................................................................................... 4,404 12 U.S.C. 1464(v)(5) ........................................................................................................................................................................... 44,043 12 U.S.C. 1464(v)(6) ........................................................................................................................................................................... 2,202,123 12 U.S.C. 1467a(i)(2) .......................................................................................................................................................................... 55,052 12 U.S.C. 1467a(i)(3) .......................................................................................................................................................................... 55,052 12 U.S.C. 1467a(r):
     First Tier ....................................................................................................................................................................................... 4,404 Second Tier .................................................................................................................................................................................. 44,043 Third Tier ...................................................................................................................................................................................... 2,202,123 12 U.S.C. 1817(j)(16):
     First Tier ....................................................................................................................................................................................... 11,011 Second Tier .................................................................................................................................................................................. 55,052 Third Tier ...................................................................................................................................................................................... 2,202,123 12 U.S.C. 1818(i)(2):
     First Tier ....................................................................................................................................................................................... 11,011 Second Tier .................................................................................................................................................................................. 55,052 Third Tier ...................................................................................................................................................................................... 2,202,123 12 U.S.C. 1820(k)(6)(A)(ii) ................................................................................................................................................................... 362,217 12 U.S.C. 1832(c) ................................................................................................................................................................................ 3,198 12 U.S.C. 1847(b) ................................................................................................................................................................................ 55,052 12 U.S.C. 1847(d):
     First Tier ....................................................................................................................................................................................... 4,404 Second Tier .................................................................................................................................................................................. 44,043 Third Tier ...................................................................................................................................................................................... 2,202,123
     12 U.S.C. 1884 .................................................................................................................................................................................... 320
     12 U.S.C. 1972(2)(F):
     First Tier ....................................................................................................................................................................................... 11,011 Second Tier .................................................................................................................................................................................. 55,052

1Public Law 101–410, 104 Stat. 890.
2Public Law 104–134, sec. 31001(s)(1), 110 Stat.
1321, 1321–373.
3Public Law 114–74, sec. 701, 129 Stat. 584, 599.
4Section 1301(a) of the Federal Reports
Elimination Act of 1998, Public Law 105–362, 112 Stat. 3293, also amended the Inflation Adjustment Act by striking section 6, which contained annual reporting requirements, and redesignating section 7 as section 6, but did not alter the civil penalty adjustment requirements; 28 U.S.C. 2461 note. 5 81 FR 38569 (June 14, 2016). Although the Bureau was not obligated to solicit comments for the interim final rule, the Bureau invited public comment and received none. 6See 12 CFR 1083.1. 7 84 FR 517 (Jan. 31, 2019). 8 Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. As discussed in guidance issued by the Director of the Office of Management and Budget (OMB), the APA generally requires notice, an opportunity for comment, and a delay in effective date for certain rulemakings, but the Inflation Adjustment Act provides that these procedures are not required for agencies to issue regulations implementing the annual adjustment. See Memorandum for the Heads of Exec. Dep’ts & Agencies from Shalanda D. Young, Acting Director, Implementation of Penalty Inflation Adjustments for 2022, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Off. of Mgmt. & Budget (Dec. 15, 2021), available at https://www.whitehouse.gov/wp￾content/uploads/2021/12/M-22-07.pdf. 9 82 FR 3601 (Jan. 12, 2017); 83 FR 1525 (Jan. 12, 2018); 84 FR 517 (Jan. 31, 2019); 85 FR 2012 (Jan. 14, 2020); 86 FR 3767 (Jan. 15, 2021). 10 Inflation Adjustment Act sections 4 and 5, codified at 28 U.S.C. 2461 note.
TABLE 1 TO PARAGRAPH (b)—Continued
Statute Adjusted civil money penalty
Third Tier ...................................................................................................................................................................................... 2,202,123 12 U.S.C. 3110(a) ................................................................................................................................................................................ 50,326 12 U.S.C. 3110(c):
First Tier ....................................................................................................................................................................................... 4,027 Second Tier .................................................................................................................................................................................. 40,259 Third Tier ...................................................................................................................................................................................... 2,013,008 12 U.S.C. 3909(d) ................................................................................................................................................................................ 2,739 15 U.S.C. 78u–2(b)(1):
For a natural person ..................................................................................................................................................................... 10,360 For any other person .................................................................................................................................................................... 103,591 15 U.S.C. 78u–2(b)(2):
For a natural person ..................................................................................................................................................................... 103,591 For any other person .................................................................................................................................................................... 517,955 15 U.S.C. 78u–2(b)(3):
For a natural person ..................................................................................................................................................................... 207,183 For any other person .................................................................................................................................................................... 1,035,909 15 U.S.C. 1639e(k)(1) ......................................................................................................................................................................... 12,647 15 U.S.C. 1639e(k)(2) ......................................................................................................................................................................... 25,293 42 U.S.C. 4012a(f)(5) .......................................................................................................................................................................... 2,392 By order of the Board of Governors of the Federal Reserve System, acting through the Secretary of the Board under delegated authority. Ann Misback, Secretary of the Board. [FR Doc. 2022–00592 Filed 1–13–22; 8:45 am] BILLING CODE 6210–01–P