[Federal Register Volume 77, Number 249 (Friday, December 28, 2012)]
[Rules and Regulations]
[Pages 76354-76356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31187]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 19 and 109

[Docket ID OCC-2012-0011]
RIN 1557-AD61


Rules of Practice and Procedure; Rules of Practice and Procedure 
in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments

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

[[Page 76355]]


ACTION: Final rule; technical amendment.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) is 
clarifying the effective dates of the adjustments to the maximum amount 
of CMPs the OCC administers that were published on November 6, 2012.

DATES: Effective Date: December 28, 2012.

FOR FURTHER INFORMATION CONTACT: Jean Campbell, Senior Attorney, 
Legislative and Regulatory Activities Division, (202) 649-6293, Office 
of the Comptroller of the Currency, 400 Seventh Street SW., Washington, 
DC 20219.

SUPPLEMENTARY INFORMATION:

Background

    On November 6, 2012, the OCC published a final rule that revised 
the charts set forth at 12 CFR 19.240(a) and at 12 CFR 109.103(c), to 
adjust the maximum amount of the CMPs the OCC administers to account 
for inflation.\1\ 77 FR 66529 (Nov. 6, 2012). These inflation 
adjustments were made pursuant to the Inflation Adjustment Act, 28 
U.S.C. 2461 note, which requires the OCC, as well as other Federal 
agencies with CMP authority, periodically to evaluate and publish by 
regulation the inflation-adjusted maximum assessment for each CMP 
authorized by a law that the agency has jurisdiction to administer.
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    \1\ Pursuant to Title III of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act, Public Law 111-203, 124 Stat. 1376 
(2010), Congress transferred the powers, authorities, rights, and 
duties of the Office of Thrift Supervision (OTS) to the OCC on July 
21, 2011, and the OCC assumed all functions of the OTS and the 
Director of the OTS relating to Federal savings associations. 
Therefore, the OCC now has responsibility for the ongoing 
supervision, examination, and regulation of Federal savings 
associations as of the transfer date. Although the final rule 
amended both 12 CFR part 19 and 12 CFR part 109, the OCC expects to 
consolidate these provisions in the future as part of its 
integration of the OCC and OTS rules.
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    The charts set forth at 12 CFR 19.240(a) and 109.103(c) also 
reflected the new maximum CMP prescribed by section 100208 of the 
Biggert-Waters Flood Insurance Reform Act of 2012,\2\ 42 U.S.C. 
4012a(f)(5), which increased the maximum amount for each violation of 
certain provisions of the National Flood Insurance Act to $2,000 and 
eliminated the $135,000 cap on the total amount of penalties for these 
violations that could be assessed against a single regulated lender in 
any calendar year.
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    \2\ Public Law 112-141, 126 Stat. 919 (July 6, 2012).
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    The effective date of the final rule was described as December 6, 
2012. Moreover, Sec. Sec.  19.240(b) and 109.103(c) stated that all of 
the adjustments in the revised charts would apply to violations that 
occurred after December 6, 2012.

Description of the Technical Correction

    The effective date of the final rule published on November 6, 2012 
was described as December 6, 2012. This technical correction amends 
Sec. Sec.  19.240(b) and 109.103(c) to clarify that the inflation 
adjustments to the maximum amount of the OCC's CMPs made pursuant to 
the Inflation Adjustment Act apply to violations that occurred both on 
or after December 6, 2012, consistent with the effective date of the 
rule.
    This technical correction also clarifies the effective date of the 
changes to the flood insurance CMP described in the revised charts set 
forth at Sec. Sec.  19.240(a) and 109.103(c), published on November 6, 
2012. The OCC amended these CMP charts to incorporate the statutory 
changes to the flood insurance CMP at the same time it amended these 
charts to account for inflation. The effective date of the final rule 
was described as December 6, 2012, and the rule did not specifically 
provide a different effective date for the changes to the flood 
insurance CMP mandated by section 100208 of the Biggert-Waters Flood 
Insurance Reform Act, 42 U.S.C. 4012a(f)(5), which were effective upon 
enactment, i.e., July 6, 2012. Accordingly, the OCC is amending 12 CFR 
parts 19 and 109 to clarify that the changes to the flood insurance CMP 
prescribed by 42 U.S.C. 4012a(f)(5), incorporated into its CMP charts, 
apply to violations that occurred both on or after July 6, 2012, 
consistent with the effective date of section 100208 of the Biggert-
Waters Flood Insurance Reform Act.

Procedural Issues

Notice and Comment Procedure

    Under the Administrative Procedure Act (APA), the requirement to 
provide public notice and an opportunity for comment does not apply if 
the agency finds, for good cause, that these procedural requirements 
are impracticable, unnecessary, or contrary to the public interest. See 
5 U.S.C. 553(b)(B). As described above, this final rule is a technical 
correction that merely clarifies the effective date of the inflation 
adjustments to the OCC's CMPs and changes the effective date of the 
flood insurance CMP in parts 19 and 109 to confirm with that mandated 
by Congress. It is in the public interest to clarify these effective 
dates and eliminate any potential confusion as quickly as possible. For 
this reason, the OCC has concluded that notice and comment procedures 
are unnecessary and contrary to the public interest and that good cause 
exists for dispensing with them.

Effective Date

    The APA generally requires an agency to publish a substantive rule 
30 days prior to its effective date. See 5 U.S.C. 553(d). As described 
above, this final rule merely clarifies the effective date of the 
inflation adjustments to the OCC's CMPs and the changes to the flood 
insurance CMP that were mandated by Congress. It is in the public 
interest to clarify the effective date as quickly as possible. 
Accordingly, the OCC finds that good cause exists to dispense with a 
delayed effective date.
    The Riegle Community Development and Regulatory Improvement Act of 
1994 (RCDRIA) requires that the effective date of new regulations and 
amendments to regulations that impose additional reporting, 
disclosures, or other new requirements on insured depository 
institutions shall be the first day of a calendar quarter that begins 
on or after the date the regulations are published in final form. See 
12 U.S.C. 4802(b)(1). The RCDRIA does not apply to this final rule 
because the rule does not impose any additional reporting, disclosures, 
or other new requirements. Accordingly, the OCC finds good cause for an 
immediate effective date.

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 the APA does not require public notice and comment on 
this final rule, we are not publishing a general notice of proposed 
rulemaking. Thus, the Regulatory Flexibility Act does not apply to this 
final rule.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 
1532, requires an agency to prepare a budgetary impact statement before 
promulgating any rule likely to result in a Federal mandate that may 
result in the expenditure by State, local, and tribal governments, in 
the aggregate, or by the private sector of $100 million or more, as 
adjusted for inflation, in any one year. The Unfunded Mandates Reform 
Act applies only when an agency issues a general notice of proposed 
rulemaking. Because we are not publishing a notice of proposed

[[Page 76356]]

rulemaking, this final rule is not subject to section 202 of the 
Unfunded Mandates Reform Act.

List of Subjects

12 CFR Part 19

    Administrative practice and procedure, Crime, Equal access to 
justice, Investigations, National banks, Penalties, Securities.

12 CFR Part 109

    Administrative practice and procedure, Penalties.

Authority and Issuance

    For the reasons set out in the preamble, parts 19 and 109 of 
chapter I of title 12 of the Code of Federal Regulations are amended as 
follows:

PART 19--RULES OF PRACTICE AND PROCEDURE

0
1. The authority citation for part 19 continues to read as follows:

    Authority:  5 U.S.C. 504, 554-557; 12 U.S.C. 93(b), 93a, 164, 
505, 1817, 1818, 1820, 1831m, 1831o, 1972, 3102, 3108(a), 3909, and 
4717; 15 U.S.C. 78(h) and (i), 78o-4(c), 78o-5, 78q-1, 78s, 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.

Subpart O--Civil Money Penalty Adjustments

0
2. The heading to subpart O is revised as set forth above.
0
3. Section 19.240 is amended by revising the section heading, the 
introductory text to paragraph (a), (b), and adding paragraph (c) to 
read as follows:


Sec.  19.240  Civil Money Penalties.

    (a) The maximum amount of each civil money penalty within the OCC's 
jurisdiction is set forth as follows:
* * * * *
    (b) Except as provided in paragraph (c) of this section, the 
maximum amount of each civil money penalty, set forth in the chart in 
paragraph (a) of this section, applies to violations that occurred on 
or after December 6, 2012.
    (c) The maximum amount of the civil money penalty prescribed by 42 
U.S.C. 4012a(f)(5), set forth in the chart in paragraph (a) of this 
section, applies to violations that occurred on or after July 6, 2012.

PART 109--RULES OF PRACTICE AND PROCEDURE IN ADJUDICATORY 
PROCEEDINGS

0
4. The authority citation for part 109 continues to read as follows:

    Authority:  5 U.S.C. 504, 554-557; 12 U.S.C. 1464, 1467, 1467a, 
1468, 1817(j), 1818, 1820(k), 1829(e), 3349, 4717, 5412(b)(2)(B); 15 
U.S.C. 78(l), 78o-5, 78u-2; 28 U.S.C. 2461 note; 31 U.S.C. 5321; and 
42 U.S.C. 4012a.


0
5. Section 109.103 is amended by revising the introductory text to 
paragraph (c), and adding paragraph (d) to read as follows:


Sec.  109.103  Civil money penalties.

* * * * *
    (c) Maximum amount of civil money penalties. Except as provided in 
paragraph (d) of this section, the maximum amount of each civil money 
penalty in the chart below applies to violations that occurred on or 
after December 6, 2012:
* * * * *
    (d) Flood insurance penalty. The maximum amount of the civil money 
penalty prescribed by 42 U.S.C. 4012a(f), set forth in the chart in 
paragraph (c) of this section, applies to violations that occurred on 
or after July 6, 2012.

    Dated: December 21, 2012.
Daniel P. Stipano,
Acting Chief Counsel.
[FR Doc. 2012-31187 Filed 12-27-12; 8:45 am]
BILLING CODE 4810-33-P