Unknown. Final rule

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2000-09-22.xml --- 65 185 Friday, September 22, 2000 Contents AID Agency for International Development NOTICES Meetings: International Food and Agricultural Development Board, 57309 00-24346 00-24347 Agriculture Agriculture Department See Food Safety and Inspection Service See Forest Service Blind Blind or Severely Disabled, Committee for Purchase From People Who Are See Committee for Purchase From People Who Are Blind or Severely Disabled Children Children and Families Administration NOTICES Grant and cooperative agreement awards:

Community Economic Development and Information Technology, 57355 00-24414 National Association of Farmers’ Market Nutrition Programs, 57355 00-24415 Coast Guard Coast Guard NOTICES Agency information collection activities: Proposed collection; comment request, 57421-57422 00-24384 Commerce Commerce Department See Export Administration Bureau See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement list; additions and deletions, 00-24412 57312-57313 00-24413 Comptroller Comptroller of the Currency PROPOSED RULES Community bank-focused regulation review; lending limits pilot program, 57292-57296 00-24280 NOTICES Preemption opinion requests:

Rhode Island; Financial Institutions Insurance Sales Act, 57427-57429 00-24340 Consumer Consumer Product Safety Commission NOTICES Settlement agreements: Riello Corp. of America, 57319-57321 00-24339 Defense Defense Department NOTICES Committees; establishment, renewal, termination, etc.: Defense Intelligence Agency Science and Technology Advisory Board, 57321 00-24332 Nuclear Weapons Surety Joint Advisory Committee, 57321 00-24331 Meetings: Dependents’ Education Advisory Council, 57321 00-24330 Education Education Department RULES Official seal and national security information procedures, 57286-57287 00-24390 NOTICES Agency information collection activities:

Submission for OMB review; comment request, 57321-57322 00-24392 Grants and cooperative agreements; availability, etc.: Distance Education Demonstration Program, 57322-57326 00-24341 Educational research and improvement— Field-Initiated Studies Education Research Program, 57326-57327 00-24391 Employment Employment and Training Administration NOTICES Adjustment assistance: Alcatel Telecommunications Cable, 57384-57385 00-24419 00-24422 Murray, Inc., 57385 00-24420 Adjustment assistance and NAFTA transitional adjustment assistance:

Cloverland Manufacturing, Inc., et al., 57385-57387 00-24421 Employment Employment Standards Administration NOTICES Minimum wages for Federal and federally-assisted construction; general wage determination decisions, 57387-57388 00-24122 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Meetings: Environmental Management Site-Specific Advisory Board— Nevada Test Site, NV, 57327 00-24398 Oak Ridge Reservation, TN, 57327-57328 00-24399 EPA Environmental Protection Agency RULES Hazardous waste program authorizations:

Tennessee, 57287-57291 00-24432 PROPOSED RULES Hazardous waste program authorizations: Tennesssee, 57307-57308 00-24433 NOTICES Agency information collection activities: Proposed collection; comment request, 57335-57336 00-24434 Environmental statements; availability, etc.: Agency statements— Comment availability, 57336-57337 00-24452 Weekly receipts, 57336 00-24451 Meetings: Acute Exposure Guideline Levels for Hazardous Substances National Advisory Committee, 57337-57338 00-24439 Pesticide, food, and feed additive petitions:

BASF Corp. Agricultural Products, 57338-57344 00-24436 Toxic and hazardous substances control: New chemicals— Receipt and status information, 57344-57353 00-24435 00-24437 Executive Executive Office of the President See Presidential Documents Export Export Administration Bureau NOTICES Export privileges, actions affecting: Montgomery, Yuri I., 57313-57314 00-24343 Osman, Oscar, 57314-57315 00-24342 FAA Federal Aviation Administration RULES Airworthiness directives: Agusta S.p.A., 57280-57282 00-24109 Boeing, 57282-57285 00-24110 Class E4 airspace, 57285-57286 00-24145 PROPOSED RULES Airworthiness directives:

Agusta S.p.A., 57298-57300 00-24372 Vulcanair S.p.A., 57296-57298 00-24370 Class D and Class E4 airspace, 57300-57301 00-24294 FCC Federal Communications Commission RULES Common carrier services: Interconnection— Deployment of wireless services offering advanced telecommunications capability; effective date, 57291 00-24327 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation filings: Mesquite Investors, L.L.C., et al., 57330-57334 00-24393 Environmental statements; notice of intent:

Central New York Oil & Gas Co., LLC, et al., 57334-57335 00-24202 Eastern Hydroelectric Corp., 57335 00-24201 *Applications, hearings, determinations, etc.:* Anaheim et al., CA, 57328 00-24394 El Paso Natural Gas Co., 57328-57329 00-24354 EOTT Energy Operating L.P., 57329 00-24395 Nicole Energy Marketing of Illinois, Inc., 57329-57330 00-24355 PG&E Energy Trading-Power, L.P., 57330 00-24356 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies: Change in bank control, 57353 00-24360 Formations, acquisitions, and mergers, 57353-57354 00-24359 Permissible nonbanking activities, 57354 00-24430 Meetings;

Sunshine Act, 57354 00-24535 Fish Fish and Wildlife Service NOTICES Boundary establishment, descriptions, etc.: Chickasaw and Lower Hatchie National Wildlife Refuges, TN, 57363 00-24365 Endangered and threatened species: Foreign listed psittacine species (parrots, parakeets, macaws, cockatoos, etc.); 5-year review, 57363-57365 00-24423 Environmental statements; availability, etc.: Clark County, NV; multiple species habitat conservation plan, 57366-57367 00-24199 Environmental statements; notice of intent:

Leelanau County, MI; exchange of lands on South Fox Island, 57367-57368 00-24249 Meetings: Klamath River Basin Fisheries Task Force, 57368 00-24369 Food Food and Drug Administration PROPOSED RULES Medical devices: Anesthesiology devices— Apnea monitor; special controls, 57301-57303 00-24334 Infant apnea monitor performance standard; withdrawn, 57303-57307 00-24335 NOTICES Meetings: Medical Devices Advisory Committee, 57355 00-24337 Reports and guidance documents; availability, etc.:

Infant/child apnea monitor; 510(k) submissions, 57355-57356 00-24336 Food Food Safety and Inspection Service NOTICES Meetings: Codex Alimentarius Commission— Food Hygiene Codex Committee, 57309-57310 00-24418 Forest Forest Service NOTICES Environmental statements; notice of intent: Custer National Forest, MT, 57310-57312 00-24366 Health Health and Human Services Department See Children and Families Administration See Food and Drug Administration See Health Care Financing Administration See Indian Health Service See Inspector General Office, Health and Human Services Department See Substance Abuse and Mental Health Services Administration Health Health Care Financing Administration See Inspector General Office, Health and Human Services Department NOTICES Agency information collection activities:

Submission for OMB review; comment request, 57356-57357 00-24344 Housing Housing and Urban Development Department NOTICES Grants and cooperative agreements; availability, etc.: Facilities to assist homeless— Excess and surplus Federal property, 57362 00-24287 Low income housing: Difficult development areas and qualified census tracts; statutorily mandated and supplemental designations for tax credit, 57525-57535 00-24286 Indian Indian Affairs Bureau NOTICES Tribal-State Compacts approval;

Class III (casino) gambling: Sauk Suiattle Indian Tribe, WA, 57368-57369 00-24357 Indian Indian Health Service NOTICES Grant and cooperative agreement awards: Center for Native American Health, College of Public Health, University of Arizona, 57357-57358 00-24338 Inspector Inspector General Office, Health and Human Services Department NOTICES Program exclusions; list, 57358-57361 00-24345 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Land Management Bureau See National Park Service See Reclamation Bureau See Surface Mining Reclamation and Enforcement Office NOTICES Committees; establishment, renewal, termination, etc.:

Minerals Management Advisory Board, 57362-57363 00-24348 IRS Internal Revenue Service NOTICES Agency information collection activities: Proposed collection; comment request, 00-24442 57429-57434 00-24443 00-24444 00-24445 00-24446 00-24447 00-24448 00-24449 00-24450 Labor Labor Department See Employment and Training Administration See Employment Standards Administration See Occupational Safety and Health Administration See Pension and Welfare Benefits Administration Land Land Management Bureau NOTICES Environmental statements; availability, etc.:

El Malpais National Conservation Area et al., NM, 57369 00-24368 Mesquite Gold Mine, CA; correction, 57369 00-24371 Maritime Maritime Administration NOTICES Agency information collection activities: Proposed collection; comment request, 57422 00-24428 Coastwise trade laws; administrative waivers: ABORIGINAL, 57422-57423 00-24426 LUCKY DOG, 57423-57424 00-24427 NASA National Aeronautics and Space Administration NOTICES Meetings: Advisory Council Life and Microgravity Sciences and Applications Advisory Committee, 57401 00-24402 Space Science Advisory Committee, 00-24400 57401-57402 00-24401 National Credit National Credit Union Administration RULES Credit unions:

Federal claims collection; civil monetary penalty inflation adjustment, 57277-57280 00-24431 National Institute National Institute of Standards and Technology NOTICES Voluntary product standards: American Petroleum Institute— Standards development; comment request, 57315-57317 00-24459 NOAA National Oceanic and Atmospheric Administration PROPOSED RULES Fishery conservation and management: West Coast States and Western Pacific fisheries— Pacific Coast groundfish, 57308 00-24458 NOTICES Meetings:

Caribbean Fishery Management Council, 57317 00-24456 Gulf of Mexico Fishery Management Council, 57317 00-24457 Western Pacific Fishery Management Council, 57318 00-24453 Permits: Marine mammals, 57318-57319 00-24454 00-24455 National Park National Park Service NOTICES Native American human remains and associated funerary objects: State Archaeologist Office, University of Iowa, IA— Inventory from Mills County, IA, 57369-57370 00-24358 National Science National Science Foundation NOTICES Meetings:

Civil and Mechanical Systems Special Emphasis Panel, 57402 00-24407 Earth Sciences Proposal Review Panel, 57402 00-24404 Mathematical Sciences Special Emphasis Panel, 00-24408 57402-57403 00-24409 00-24410 Neuroscience Advisory Panel, 57403 00-24403 Physiology and Ethology Advisory Panel, 00-24406 57403-57404 00-24411 Small Business Industrial Innovation Advisory Committee, 57404 00-24405 Nuclear Nuclear Regulatory Commission NOTICES Environmental statements; availability, etc.:

Virginia Electric & Power Co., 57407-57408 00-24363 *Applications, hearings, determinations, etc.:* AmerGen Energy Co., LLC, 57404-57407 00-24440 00-24441 Occupational Occupational Safety and Health Administration NOTICES Agency information collection activities: Proposed collection; comment request, 57388-57389 00-23900 Pension Pension and Welfare Benefits Administration NOTICES Employee benefit plans; prohibited transaction exemptions: Masters, Mates and Pilots et al., 57389-57400 00-24387 Salomon Smith Barney Inc.; correction, 57401 00-24388 Postal Postal Rate Commission NOTICES Meetings;

Sunshine Act, 57408 00-24548 Postal Postal Service NOTICES Meetings; Sunshine Act, 57408-57409 00-24589 Presidential Presidential Documents EXECUTIVE ORDERS Committees; establishment, renewal, termination, etc.: Medicine Policy, White House Commission on Complementary and Alternative; membership (EO 13167) Correction, 57436 C0-24364 Public Public Health Service See Food and Drug Administration See Indian Health Service See Substance Abuse and Mental Health Services Administration Reclamation Reclamation Bureau NOTICES Environmental statements; availability, etc.:

Coachella Canal Lining Project, CA, 57370-57371 00-24425 Colorado River interim surplus criteria; correction, 57371 00-24424 Research Research and Special Programs Administration NOTICES Meetings: Integrity Management Communication Team, 57424 00-24383 SEC Securities and Exchange Commission RULES Investment advisers: Electronic filing system and Form ADV update, 57437-57524 00-23888 NOTICES Meetings; Sunshine Act, 57410 00-24590 Self-regulatory organizations; proposed rule changes:

American Stock Exchange, LLC, 57410-57412 00-24350 International Securities Exchange LLC, 57412 00-24351 National Association of Securities Dealers, Inc., 57413-57416 00-24389 Pacific Exchange, Inc., 57416-57419 00-24353 Philadelphia Stock Exchange, Inc., 57419-57420 00-24352 *Applications, hearings, determinations, etc.:* Public utility holding company filings, 57409-57410 00-24349 Social Social Security Administration NOTICES Meetings: Ticket to Work and Work Incentives Advisory Panel, 57420-57421 00-24536 Substance Substance Abuse and Mental Health Services Administration NOTICES Agency information collection activities:

Proposed collection; comment request, 57362 00-24367 Surface Surface Mining Reclamation and Enforcement Office NOTICES Agency information collection activities: Proposed collection; comment request, 57371-57372 00-24373 Submission for OMB review; comment request, 57372 00-24374 Grants and cooperative agreements; availability, etc.: Wyoming— Frannie Sewer Line Replacement Project, 57381-57383 00-24381 Greybull Sewer Improvements Project, 57383-57384 00-24382 Hudson Elementary School Improvements Project, 57378-57380 00-24379 Kemmerer Medical Center Access Improvements Project, 57377-57378 00-24378 Medicine Bow Water Treatment Plant Improvements Project, 57380-57381 00-24380 Rock Springs Stormwater Channel Improvements Project, 57374-57375 00-24376 Sheridan Slope Stability Project, 57375-57377 00-24377 Wright Junior/Senior High School Improvements Project, 57372-57374 00-24375 Surface Surface Transportation Board NOTICES Railroad operation, acquisition, construction, etc.:

Buffalo Ridge Regional Railroad Authority, 57424-57425 00-24165 SMS Rail Service, Inc., 57425 00-24166 Transportation Transportation Department See Coast Guard See Federal Aviation Administration See Maritime Administration See Research and Special Programs Administration See Surface Transportation Board See Transportation Statistics Bureau Transportation Transportation Statistics Bureau NOTICES Agency information collection activities: Proposed collection; comment request, 57425-57427 00-24385 00-24386 00-24429 Treasury Treasury Department See Comptroller of the Currency See Internal Revenue Service Veterans Veterans Affairs Department NOTICES Agency information collection activities:

Proposed collection; comment request, 57434 00-24328 Submission for OMB review; comment request, 57434-57435 00-24329 Separate Parts In This Issue Part II Securities and Exchange Commission, 57437-57524 00-23888 Part III Department of Housing and Urban Development, 57525-57535 00-24286 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. 65 185 Friday, September 22, 2000 Rules and Regulations NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Part 747 Civil Monetary Penalty Inflation Adjustment AGENCY:

National Credit Union Administration. ACTION: Final rule. SUMMARY: Congress, in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, required all federal agencies with the authority to impose civil monetary penalties

(CMPs)to regularly evaluate those CMPs to ensure that they continue to maintain their deterrent value. As a result of these acts, the head of each agency was required, by October 23, 1996, and at least once every four years thereafter, to adjust its CMPs for inflation. In 1996, the National Credit Union Administration

(NCUA)issued a final rule to implement the required adjustments to certain CMPs authorized by the Federal Credit Union Act. Since that time, NCUA has discovered several more CMPs that should also be adjusted for inflation. In order to comply with Congress' mandate to adjust CMPs for inflation at least every four years, NCUA is issuing this final rule to implement the required adjustments to those CMPs. EFFECTIVE DATE: October 23, 2000. FOR FURTHER INFORMATION CONTACT: Allan Meltzer, Associate General Counsel, or Jon Canerday, Trial Attorney, Office of General Counsel, NCUA, 1775 Duke Street, Alexandria, Virginia 22314, or telephone

(703)518-6540. SUPPLEMENTARY INFORMATION: Background: The Debt Collection Improvement Act of 1996 1

(DCIA)amended the Federal Civil Penalties Inflation Adjustment Act of 1990 2 (FCPIA Act) to require every Federal agency to enact regulations that adjust each civil monetary penalty

(CMP)3 provided by law under its jurisdiction by the rate of inflation pursuant to the inflation adjustment formula in section 5(b) of the FCPIA Act. Each Federal agency was required to issue these implementing regulations by October 23, 1996, and at least once every 4 years thereafter. Section 6 of the amended FCPIA Act specifies that inflation-adjusted CMPs will only apply to violations that occur after the effective date of the adjustment. The inflation adjustment is based on the percentage increase in the Consumer Price Index (CPI). 4 Specifically, section 5(b) of the FCPIA Act defines “the term ‘cost-of-living adjustment’ [to] mean the percentage (if any) for each civil monetary penalty by which—(1) the Consumer Price Index for the month of June of the calendar year preceding the adjustment, exceeds

(2)the Consumer Price Index for the month of June of the calendar year in which the amount of such civil monetary penalty was last set or adjusted pursuant to law.” Furthermore, each CMP that has been adjusted for inflation must be rounded to a number prescribed by section 5(a) of the FCPIA Act. 5 1 Pub. L. 104-134, § 31001(s), 110 Stat. 1321-373, (Apr. 26, 1996). The provision is codified at 28 U.S.C. 2461 note. 2 Pub. L. 101-410, 104 Stat. 890, (Oct. 5, 1990), also codified at 28 U.S.C. 2461 note. 3 Section 3(2) of the amended FCPIA Act defines a CMP as any penalty, fine, or other sanction that:

(1)either is for a specific monetary amount as provided by Federal law or has a maximum amount provided for by Federal law;

(2)is assessed or enforced by an agency pursuant to Federal law; and

(3)is assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal courts. 4 The CPI is published by the Department of Labor, Bureau of Statistics, and is available at its website: www.bls.gov/top20.html. 5 NCUA recognizes that the rounding provision of the FCPIA Act is capable of differing interpretations. As an example, the provision states, in part, that an increase “shall be rounded to the nearest * * * multiple of $1,000 in the case of penalties greater than $1,000 but less than or equal to $10,000.” Section 5(a)(3), FCPIA Act. NCUA understands that some agencies have chosen to determine which rounding rule to follow based upon the amount of the *increase, * rather than the amount of the *penalty* . In other words, the forgoing rounding provision would only be applied if the amount of the adjustment was more than $1,000 but less than $10,000. NCUA has chosen to follow the language in the statute and therefore has adopted an interpretation that selects the appropriate rounding rule based upon the amount of the *penalty.* CMPs Previously Adjusted Calculation of the Adjustment With respect to the CMPs authorized by 12 U.S.C. 1786(k)(2), the last adjustment for inflation occurred in 1996. Therefore, the current adjustment will be the percentage by which the CPI for the month of June 1999 exceeds the CPI for the month of June 1996. According to the Bureau of Labor Statistics, the CPI for the month of June 1999 was 166.2 and the CPI for the month of June 1996 was 156.7. When 166.2 is divided by 156.7, the result is 1.06. Thus, the CMPs authorized by 12 U.S.C. 1786(k)(2) should be multiplied by a factor of 1.06 to arrive at the new adjusted amounts (before required rounding). Section 206(k)(2) of the Federal Credit Union Act, 12 U.S.C. 1786(k)(2), authorizes NCUA to impose three levels or tiers of CMPs upon insured credit unions or institution-affiliated parties. First Tier CMPs First tier CMPs, 12 U.S.C. 1786(k)(2)(A), may be imposed for the violation of any law or regulation, the violation of certain final orders or temporary orders, the violation of conditions imposed in writing by the NCUA Board, or the violation of any written agreement between the credit union and NCUA. The statute provides that first tier CMPs shall not be more than $5,000 for each day the violation continues. After the required adjustment for inflation in 1996, the maximum penalty was increased to $5,500 for each day. 6 Multiplying the current penalty of $5,500 by the factor of 1.06 results in $5,830, an increase of $330. When that number is rounded as required by the FCPIA Act, 7 the inflation-adjusted maximum for a first tier CMP remains $5,500. 6 The FCPIA Act limited the first adjustment of a CMP to a maximum of 10%. 7 “Any increase determined under this subsection shall be rounded to the nearest— * * *

(3)multiple of $1,000 in the case of penalties greater than $1,000 but less than or equal to $10,000.” Section 5(a), FCPIA Act. Therefore, $330 is rounded to the nearest multiple of $1,000 or to $0. Second Tier CMPs Second tier CMPs, 12 U.S.C. 1786(k)(2)(B), are authorized for violations described in first tier CMPs, the reckless engaging in an unsafe or unsound practice in conducting the affairs of a credit union, or the breach of any fiduciary duty, when the violation, practice or breach is part of a pattern of misconduct, or causes or is likely to cause more than a minimal loss to the credit union, or results in pecuniary gain or other benefit. The statute provides a maximum second tier CMP of $25,000 for each day the violation, practice or breach continues. After the required 1996 adjustment for inflation, the maximum penalty was increased to $27,500 per day. Multiplying the current penalty of $27,500 by the factor of 1.06 results in $29,150, an increase of $1,650. When that number is rounded as required by the FCPIA Act, 8 the inflation-adjusted maximum for a second tier CMP remains $27,500. 8 “Any increase determined under this subsection shall be rounded to the nearest— * * *

(4)multiple of $5,000 in the case of penalties greater than $10,000 but less than or equal to $100,000.” Section 5(a), FCPIA Act. Therefore, $1,650 is rounded to the nearest multiple of $5,000 or to $0. Third Tier CMPs Third tier CMPs, 12 U.S.C. 1786(k)(2)(C), may be imposed for any of the acts described in second tier CMPs that cause a substantial loss to the credit union or a substantial pecuniary gain or other benefit. The amount of third tier CMPs depends upon the status of the respondent required to pay the CMP, 12 U.S.C. 1786(k)(2)(D). For a person other than an insured credit union, under the statute the current maximum third tier CMP is $1,000,000 for each day the violation, practice or breach continues. For an insured credit union, the statute provides a current daily maximum CMP of the lesser of $1,000,000 or 1 percent of the total assets of the credit union. In 1996, the maximum CMP for a person other than an insured credit union was increased for inflation to $1,100,000 per day. At the same time, the maximum CMP for an insured credit union was increased to the lesser of $1,100,000 or 1 percent of the total assets of the credit union. Multiplying the current penalty of $1,100,000 by the factor of 1.06 results in $1,166,000, an increase of $66,000. When that number is rounded as required by the FCPIA Act, 9 the new inflation-adjusted third tier CMP becomes $1,175,000. 9 “Any increase determined under this subsection shall be rounded to the nearest— * * *

(6)multiple of $25,000 in the case of penalties greater than $200,000.” Section 5(a), FCPIA Act. Therefore, $66,000 is rounded to the nearest multiple of $25,000 or to $75,000. CMPs Not Previously Adjusted For Inflation NCUA has determined that several additional provisions authorize penalties that meet the definition of CMPs. These provisions were not previously adjusted for inflation in 1996. 12 U.S.C. 1782(a)(3) NCUA is authorized to require credit unions to provide reports of condition. The failure to submit a required report or the submission of a false or misleading report subjects a credit union to three levels of CMPs, depending upon the reasons for noncompliance. For an inadvertent failure to submit a report or the inadvertent submission of a false or misleading report, the credit union is subject to a penalty of not more than $2,000 for each day the failure continues or such false or misleading information is not corrected. For a non-inadvertent failure to submit a report or for the non-inadvertent submission of a false or misleading report, the credit union is subject to a penalty of not more than $20,000 for each day the failure continues or such false or misleading information is not corrected. Lastly, for a failure to submit a report or the submission of a false or misleading report done knowingly or with reckless disregard, the credit union is subject to a penalty of not more than $1,000,000 or 1 percent of the total assets of the credit union, whichever is less, for each day the failure continues or such false or misleading information is not corrected. Calculation of the Adjustment The CMPs authorized by 12 U.S.C. 1782(a)(3) were created by Congress in 1989. Therefore, the current adjustment will be the percentage by which the CPI for the month of June 1999 exceeds the CPI for the month of June 1989. According to the Bureau of Labor Statistics, the CPI for the month of June 1999 was 166.2 and the CPI for the month of June 1989 was 124.1. When 166.2 is divided by 124.1, the result is 1.34. Thus, the CMPs authorized by 12 U.S.C. 1782(a)(3) should be multiplied by a factor of 1.34 to arrive at the new adjusted amounts (before required rounding). However, another provision of the FCPIA Act limits the first adjustment of a CMP to an amount not to exceed 10 percent of the original penalty. 10 The amount of increase to these CMPs in the final regulation would have been more if this limit did not exist. 10 “The first adjustment of a civil monetary penalty made pursuant to [the FCPIA Act] may not exceed 10 percent of such penalty.” Section 6, FCPIA Act (originally designated as Section 7). The maximum CMP authorized by 12 U.S.C. 1782(a)(3) for an inadvertent failure to submit a report or the inadvertent submission of a false or misleading report is currently $2,000 for each day the failure continues or such false or misleading information is not corrected. After the required adjustment for inflation, the maximum penalty is increased by 10%, or $200, to $2,200 per day. The maximum CMP authorized by 12 U.S.C. 1782(a)(3) for a non-inadvertent failure to submit a report or the non-inadvertent submission of a false or misleading report is currently $20,000 for each day the failure continues or such false or misleading information is not corrected. After the required adjustment for inflation, the maximum penalty is increased by 10%, or $2,000, to $22,000 per day. The maximum CMP authorized by 12 U.S.C. 1782(a)(3) for a failure to submit a report or the submission of a false or misleading report done knowingly or with reckless disregard is currently $1,000,000 or 1 percent of the total assets of the credit union, whichever is less, for each day the failure continues or such false or misleading information is not corrected. After the required adjustment for inflation, the maximum penalty is increased by 10%, or $100,000, to $1,100,000 or 1 percent of the total assets of the credit union, whichever is less, per day. 12 U.S.C. 1782(d)(2) In a provision similar to the authority discussed above, NCUA is authorized to require each credit union to provide periodic certified statements of the amount of insured shares in the credit union, as well as to pay required deposits into the National Credit Union Share Insurance Fund (NCUSIF). The failure to submit a required certified statement or the submission of a false or misleading statement subjects a credit union to three tiers of CMPs, depending upon the reasons for noncompliance. Calculation of the Adjustment The CMPs authorized by 12 U.S.C. 1782(d)(2) were created by Congress in 1991. Therefore, the current adjustment will be the percentage by which the CPI for the month of June 1999 exceeds the CPI for the month of June 1991. According to the Bureau of Labor Statistics, the CPI for the month of June 1999 was 166.2 and the CPI for the month of June 1991 was 136. When 166.2 is divided by 136, the result is 1.22. Thus, the CMPs authorized by 12 U.S.C. 1782(d)(2) should be multiplied by a factor of 1.22 to arrive at the new adjusted amounts (before required rounding). However, as noted previously, another provision of the FCPIA Act limits the first adjustment of a CMP to an amount not to exceed 10 percent of the original penalty. The amount of increase to these CMPs in the final regulation would have been more if this limit did not exist. First Tier CMPs The maximum CMP authorized by 12 U.S.C. 1782(d)(2)(A) for an inadvertent failure to timely submit a certified statement or an inadvertent submission of a false or misleading certified statement, is currently $2,000 for each day the failure continues or such false or misleading information is not corrected. After the required adjustment for inflation, the maximum penalty is increased by 10%, or $200, to $2,200 per day. Second Tier CMPs The maximum CMP authorized by 12 U.S.C. 1782(d)(2)(B) for a non-inadvertent failure to timely submit a certified statement, or a non-inadvertent submission of a false or misleading certified statement, or the failure or refusal to pay any required deposit or premium for insurance is currently $20,000 for each day the failure continues, such false or misleading information is not corrected, or the deposit or premium is not paid. After the required adjustment for inflation, the maximum penalty is increased by 10%, or $2,000, to $22,000 per day. Third Tier CMPs The maximum CMP authorized by 12 U.S.C. 1782(d)(2)(C) for a failure to submit a report or the submission of a false or misleading report done knowingly or with reckless disregard is currently $1,000,000 or 1 percent of the total assets of the credit union, whichever is less, for each day the failure continues or such false or misleading information is not corrected. After the required adjustment for inflation, the maximum penalty is increased by 10%, or $100,000, to $1,100,000 or 1 percent of the total assets of the credit union, whichever is less, per day. 12 U.S.C. 1785(e)(3) Pursuant to 12 U.S.C. 1785(e)(1), NCUA is authorized to promulgate regulations to provide minimum standards with which each insured credit union must comply with respect to security devices and procedures to discourage robberies, burglaries and larcenies and to assist in the identification and apprehension of persons who commit such acts. A credit union that violates such a regulation is subject to a CMP of up to $100 for each day the violation continues. 12 U.S.C. 1785(e)(3). Calculation of the Adjustment The CMP authorized by 12 U.S.C. 1785(e)(3), originally passed by Congress in 1970, was not adjusted for inflation in 1996. Therefore, the current adjustment will be the percentage by which the CPI for the month of June 1999 exceeds the CPI for the month of June 1970. According to the Bureau of Labor Statistics, the CPI for the month of June 1999 was 166.2 and the CPI for the month of June 1970 was 38.8. When 166.2 is divided by 38.8, the result is 4.28. Thus, the CMP authorized by 12 U.S.C. 1785(e)(3) should be multiplied by a factor of 4.28 to arrive at the new adjusted amounts (before required rounding). However, as discussed previously, the FCPIA Act limits the first adjustment of a CMP to an amount not to exceed 10 percent of the original penalty. The amount of increase to this CMP in the final regulation would have been more if this limit did not exist. The maximum CMP authorized by 12 U.S.C. 1785(e)(3) for non-compliance with NCUA security regulations is currently $100 for each day the violation continues. After the required adjustment for inflation, the maximum penalty is increased by 10%, or $10, to $110 per day. 42 U.S.C. 4012a(f) Pursuant to 42 U.S.C. 4012a(f), NCUA is authorized to impose CMPs against a credit union that is found to have a pattern or practice of committing certain specified actions in violation of the National Flood Insurance Program. A credit union that engages in such violations is subject to a CMP of up to $350 for each violation. The total amount of penalties assessed against any credit union during any calendar year may not exceed $100,000. 42 U.S.C. 4012a(f)(5). Calculation of the Adjustment The CMP authorized by 42 U.S.C. 4012a(f), originally passed by Congress in 1994, was not adjusted for inflation in 1996. Therefore, the current adjustment will be the percentage by which the CPI for the month of June 1999 exceeds the CPI for the month of June 1994. According to the Bureau of Labor Statistics, the CPI for the month of June 1999 was 166.2 and the CPI for the month of June 1994 was 148.0. When 166.2 is divided by 148.0, the result is 1.12. Thus, the CMP authorized by 42 U.S.C. 4012a(f) should be multiplied by a factor of 1.12 to arrive at the new adjusted amounts (before required rounding). However, as discussed previously, the FCPIA Act limits the first adjustment of a CMP to an amount not to exceed 10 percent of the original penalty. The amount of increase to this CMP in the final regulation would have been more if this limit did not exist. The maximum CMP authorized by 42 U.S.C. 4012a(f) for certain violations of the National Flood Insurance Program is currently $350 for each violation, up to a maximum of $100,000 per calendar year. After the required adjustment for inflation, the maximum penalty is increased by 10%, or $35, to $385 per violation. The annual maximum penalty is also increased by 10%, or $10,000, to $110,000 per calendar year. The NCUA Board now adopts this final rule to adjust the forgoing CMPs for the rate of inflation, as required by the FCPIA Act. The FCPIA Act provides federal agencies with no discretion in the adjustment of CMPs for inflation, and it also requires such adjustments for inflation to occur at least every four years. Further, the regulation is ministerial and technical and, for these reasons, the NCUA Board finds good cause to determine that public notice and comment for this new regulation is unnecessary, impractical and contrary to the public interest, pursuant to the Administrative Procedure Act (APA), 5 U.S.C. 553(a)(3)(B). Regulatory Procedures Regulatory Flexibility Act The NCUA Board certifies that the proposed regulation will not have a significant economic impact on a substantial number of small credit unions. Small credit unions are defined by NCUA, pursuant to its authority to define “small organizations,” as those credit unions with assets of $1 million or less. 5 U.S.C. 601(4), (6); NCUA IRPS 81-4, 46 FR 29248 (1981); NCUA IRPS 87-2, 12 CFR 791.8(a). Accordingly, a regulatory flexibility analysis is not required. Paperwork Reduction Act No collections of information pursuant to the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ) are contained in the rule. Consequently, no information has been submitted to the Office of Management and Budget for review. Executive Order 13132 Executive Order 13132 encourages independent regulatory agencies to consider the impact of their regulatory actions on state and local interests. In adherence to fundamental federalism principles, NCUA, an independent regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies with the Executive Order. This final rule will apply to all federally-insured credit unions, but it will not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. NCUA has determined the final rule does not constitute a policy that has federalism implications for purposes of the Executive Order. Assessment of Federal Regulations and Policies on Families NCUA has determined that this rule will not affect family well-being within the meaning of section 654 of the Treasury and General Government Appropriations Act, 1999, Pub. L. No. 105-277, 112 Stat. 2681 (1998). Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. No. 104-21) provides generally for congressional review of agency rules. A reporting requirement is triggered in instances where NCUA issues a final rule as defined by Section 551 of the Administrative Procedures Act. 5 U.S.C. 551. The Office of Management and Budget has reviewed this rule and has determined that for purposes of the Small Business Regulatory Enforcement Fairness Act of 1996 it is not a major rule. List of Subjects in 12 CFR Part 747 Credit unions, Civil monetary penalties. By the National Credit Union Administration Board on September 6, 2000. Becky Baker, Secretary to the Board. Accordingly, the NCUA amends 12 CFR part 747 as follows: PART 747—ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF PRACTICE AND PROCEDURE, AND INVESTIGATIONS 1. The authority citation for part 747 is revised to read as follows: Authority: 12 U.S.C. 1766, 1782, 1784, 1785, 1786, 1787; 42 U.S.C. 4012a; Pub. L. 101-410; Pub.L. 104-134. 2. Part 747, Subpart K is revised to read as follows: Subpart K—Inflation Adjustment of Civil Monetary Penalties § 747.1001 Adjustment of civil money penalties by the rate of inflation.

(a)NCUA is required by the Federal Civil Penalties Inflation Adjustment Act of 1990 (Public Law 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note)) to adjust the maximum amount of each civil money penalty within its jurisdiction by the rate of inflation. The following chart displays those adjustments, as calculated pursuant to the statute: U.S. Code citation CMP description New maximum amount

(1)12 U.S.C. 1782(a)(3) Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report $2,200

(2)12 U.S.C. 1782(a)(3) Non-inadvertent failure to submit a report or the non-inadvertent submission of a false or misleading report $22,000

(3)12 U.S.C. 1782(a)(3) Failure to submit a report or the submission of a false or misleading report done knowingly or with reckless disregard $1,100,000 or 1 percent of the total assets of the credit union, whichever is less

(4)12 U.S.C. 1782(d)(2)(A) First tier $2,200

(5)12 U.S.C. 1782(d)(2)(B) Second tier $22,000

(6)12 U.S.C. 1782(d)(2)(C) Third tier $1,100,000 or 1 percent of the total assets of the credit union, whichever is less

(7)12 U.S.C. 1785(e)(3) Non-compliance with NCUA security regulations $110

(8)12 U.S.C. 1786(k)(2)(A) First tier $5,500

(9)12 U.S.C. 1786(k)(2)(B) Second tier $27,500

(10)12 U.S.C. 1786(k)(2)(C) Third tier For a person other than an insured credit union: $1,175,000; For an insured credit union: $1,175,000 or 1 percent of the total assets of the credit union, whichever is less

(11)42 U.S.C. 4012a(f) Per violation Per calendar year $385 $110,000

(b)The adjustments displayed in paragraph

(a)of this section apply to acts occurring beginning on October 23, 2000. [FR Doc. 00-24431 Filed 9-21-00; 8:45 am]

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