[Federal Register Volume 62, Number 14 (Wednesday, January 22, 1997)]
[Rules and Regulations]
[Pages 3199-3200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1507]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 19

[Docket No. 97-03]
RIN 1557-AB57


Rules of Practice and Procedure

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) is 
amending its rules of practice and procedure to adjust the maximum 
amount, as set by statute, of each civil money penalty (CMP) within its 
jurisdiction to account for inflation. This action is required under 
the Federal Civil Penalties Inflation Adjustment Act of 1990 (Inflation 
Adjustment Act), as amended by the Debt Collection Improvement Act of 
1996.

EFFECTIVE DATE: January 22, 1997.

FOR FURTHER INFORMATION CONTACT: Andrew Gutierrez, Attorney, or Mark 
Tenhundfeld, Assistant Director, Legislative and Regulatory Activities 
Division, (202) 874-5090, or Carolyn Amundson, Senior Attorney, 
Enforcement and Compliance Division, (202) 874-4800; Office of the 
Comptroller of the Currency, 250 E Street, SW, Washington, DC 20219.

SUPPLEMENTARY INFORMATION: The Inflation Adjustment Act (28 U.S.C. 2461 
note) requires the OCC, as well as other Federal agencies with CMP 
authority, to publish regulations to adjust each CMP provided by law 
within its jurisdiction to account for inflation. The purpose of these 
adjustments is to maintain the deterrent effect of CMPs and to promote 
compliance with the law. The Inflation Adjustment Act requires the 
initial adjustments set out in this regulation, and requires subsequent 
adjustments at least once every four years hereafter.
    The Inflation Adjustment Act requires that the adjustment reflect 
the percentage increase in the Consumer Price Index between June of the 
calendar year preceding the adjustment and June of the calendar year in 
which the amount was last set or adjusted. The Inflation Adjustment Act 
also provides rules for rounding off increases,1 and provides that 
any increase in a CMP applies only to violations that occur after the 
date of the adjustment. Additionally, section (s)(2) of the Debt 
Collection Improvement Act limits the initial adjustment of a CMP 
pursuant to the Inflation Adjustment Act to 10 percent of the amount 
set by statute.2
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    \1\ The statute's rounding rules require that an increase be 
rounded to the nearest multiple of: $10 in the case of penalties 
less than or equal to $100; $100 in the case of penalties greater 
than $100 but less than or equal to $1000; $1,000 in the case of 
penalties greater than $1,000 but less than or equal to $10,000; 
$5,000 in the case of penalties greater than $10,000 but less than 
or equal to $100,000; $10,000 in the case of penalties greater than 
$100,000 but less than or equal to $200,000; $25,000 in the case of 
penalties greater than $200,000.
    \2\ There is an ambiguity as to whether to apply the rounding 
rules before or after applying the 10 percent limitation. The OCC, 
in order to remain consistent with the other Federal banking 
agencies, has elected to apply the rounding rules before (and not 
after) applying the 10 percent limitation.
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    This final rule adjusts each CMP amount within the jurisdiction of 
the OCC in accordance with these statutory requirements. It does so by 
adding a new subpart O to part 19, entitled ``Civil Money Penalty 
Inflation Adjustments.'' Section 19.240 of new subpart O contains a 
table that identifies the statutes that provide the OCC with CMP 
authority, describes the different tiers of penalties provided in each 
statute (as applicable), and sets out the inflation-adjusted maximum 
penalty that the OCC may impose pursuant to each statutory provision. 
Section 19.241 states that the adjustments made in Sec. 19.240 apply 
only to violations that occur after January 22, 1997.
    The OCC intends to readjust these amounts in the year 2000 and 
every four years thereafter, assuming no further changes to the mandate 
imposed by the Inflation Adjustment Act.

Public Notice and Comment and Delayed Effective Date Not Required

    The OCC has determined for good cause that public notice and 
comment is unnecessary and impracticable pursuant to the Administrative 
Procedure Act (5 U.S.C. 553(b)(B)). The Debt Collection Improvement Act 
leaves the OCC with no discretion in calculating the adjustment, and 
requires the OCC to publish regulations within 180 days of its 
enactment. For these same reasons, the OCC for good cause is adopting 
an immediate effective date consistent with the Administrative 
Procedure Act (see 5 U.S.C. 553(d)).

Regulatory Flexibility Act

    The Regulatory Flexibility Act applies only to rules for which an 
agency publishes a general notice of proposed rulemaking pursuant to 5 
U.S.C. 553(b) (see 5 U.S.C. 601(2)). Because the OCC has determined for 
good cause that public notice and comment on this final rule is 
unnecessary and impracticable pursuant to 5 U.S.C. 553(b)(B), the OCC 
is not publishing a general notice of proposed rulemaking. Thus, the 
Regulatory Flexibility Act does not apply to this final rule.

Executive Order 12866

    The Office of Management and Budget has concurred with the OCC's 
determination that this final rule is not a significant regulatory 
action under Executive Order 12866.

Unfunded Mandates Reform Act of 1995

    The OCC has determined that this final rule will not result in 
expenditures by state, local, and tribal governments, or by the private 
sector, of $100 million or more in any one year. Accordingly, a 
budgetary impact statement is not required under section 202 of the 
Unfunded Mandates Reform Act of 1995.

List of Subjects in 12 CFR Part 19

    Administrative practice and procedure, Crime, Investigations, 
National banks, Penalties, Securities.

Authority and Issuance

    For the reasons set out in the preamble, chapter I of title 12 of 
the Code of Federal Regulations is amended as follows:

PART 19--RULES OF PRACTICE AND PROCEDURE

    1. The authority citation for part 19 is revised to read as 
follows:

    Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 93(b), 164, 505, 
1817, 1818, 1820, 1831o, 1972, 3102, 3108(a), 3909 and 4717; 15 
U.S.C. 78 (h) and (i), 78o-4(c), 78o-5, 78q-1, 78u, 78u-2, 78u-3, 
and 78w; 28 U.S.C. 2461 note; 31 U.S.C. 330 and 5321; and 42 U.S.C. 
4012a.

    2. A new subpart O is added to read as follows:

[[Page 3200]]

Subpart O--Civil Money Penalty Inflation Adjustments


Sec. 19.240  Inflation adjustments.

    The maximum amount of each civil money penalty within the OCC's 
jurisdiction is adjusted in accordance with the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) as follows:

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                                                                                                     Adjusted   
         U.S. code citation                                   Description                             maximum   
                                                                                                      penalty   
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12 U.S.C. 93(b), 504, 1817(j)(16),    Tier 1....................................................           5,500
 1818(i)(2), and 1972(2)(F).          Tier 2....................................................          27,500
                                      Tier 3....................................................       1,100,000
12 U.S.C. 164 and 3110(c)...........  Tier 1....................................................           2,000
                                      Tier 2....................................................          22,000
                                      Tier 3....................................................       1,100,000
12 U.S.C. 1832(c) and 3909(d)(1)....  ..........................................................           1,100
12 U.S.C. 1884......................  ..........................................................             110
12 U.S.C. 3110(a)...................  ..........................................................          27,500
15 U.S.C. 78u-2(b)..................  Tier 1 (natural person)...................................           5,500
                                      Tier 1 (other person).....................................          55,000
                                      Tier 2 (natural person)...................................          55,000
                                      Tier 2 (other person).....................................         275,000
                                      Tier 3 (natural person)...................................         110,000
                                      Tier 3 (other person).....................................         550,000
42 U.S.C. 4012a(f)(5)...............  Per violation.............................................             350
                                      Per year..................................................         105,000
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Sec. 19.241  Applicability.

    The adjustments in Sec. 19.240 apply to violations that occur after 
January 22, 1997.

    Dated: January 13, 1997.
Eugene A. Ludwig,
Comptroller of the Currency.
[FR Doc. 97-1507 Filed 1-21-97; 8:45 am]
BILLING CODE 4810-33-P