[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