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Rules and Regulations
Federal Register Vol. 86, No. 4
Thursday, January 7, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 747
RIN 3133AF34

Civil Monetary Penalty Inflation Adjustment National Credit Union Administration NCUA.
ACTION: Final rule.
AGENCY:

The NCUA Board Board is amending its regulations to adjust the maximum amount of each civil monetary penalty CMP within its jurisdiction to account for inflation.
This action, including the amount of the adjustments, is required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
DATES: This final rule is effective January 7, 2021.
FOR FURTHER INFORMATION CONTACT: Gira Bose, Staff Attorney, at 1775 Duke Street, Alexandria, VA 22314, or telephone: 703 5186562.
SUPPLEMENTARY INFORMATION:
SUMMARY:

I. Legal Background II. Calculation of Adjustments III. Regulatory Procedures
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I. Legal Background A. Statutory Requirements Every Federal agency, including the NCUA, is required by law to adjust its maximum CMP amounts each year to account for inflation. Prior to this being an annual requirement, agencies were required to adjust their CMPs at least once every four years. The previous four-year requirement stemmed from the Debt Collection Improvement Act of 1996,1 which amended the Federal Civil 1 Public Law 104134, Sec. 31001s, 110 Stat.
1321373 Apr. 26, 1996. The law is codified at 28
U.S.C. 2461 note.

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Penalties Inflation Adjustment Act of 1990.2
The current annual requirement stems from the Bipartisan Budget Act of 2015,3
which contains the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 the 2015
amendments.4 This legislation provided for an initial catch-up adjustment of CMPs in 2016, followed by annual adjustments. The catch-up adjustment reset CMP maximum amounts by setting aside the inflation adjustments that agencies made in prior years and instead calculated inflation with reference to the year when each CMP was enacted or last modified by Congress. Agencies were required to publish their catch-up adjustments in an interim final rule by July 1, 2016 and make them effective by August 1, 2016.5
The NCUA complied with these requirements in a June 2016 interim final rule, followed by a November 2016
final rule to confirm the adjustments as final.6
The 2015 amendments also specified how agencies must conduct annual inflation adjustments after the 2016
catch-up adjustment. Following the catch-up adjustment, agencies must make the required adjustments and publish them in the Federal Register by January 15 each year.7 For 2017, the NCUA issued an interim final rule on January 6, 2017,8 followed by a final rule issued on June 23, 2017.9 For 2018, 2019, and 2020, the NCUA issued a final rule in each year to satisfy the agencys annual requirements.10 This final rule satisfies the agencys requirement for the 2021 annual adjustment.
The law provides that the adjustments shall be made notwithstanding the section of the Administrative Procedure Act APA that requires prior notice and public comment for agency rulemaking.11 The 2015 amendments 2 Public Law 101410, 104 Stat. 890 Oct. 5, 1990, codified at 28 U.S.C. 2461 note.
3 Public Law 11474, 129 Stat. 584 Nov. 2, 2015.
4 129 Stat. 599.
5 Public Law 11474, Sec. 701b1, 129 Stat. 584, 599 Nov. 2, 2015.
6 81 FR 40152 June 21, 2016; 81 FR 78028 Nov.
7, 2016.
7 Public Law 11474, Sec. 701b1, 129 Stat. 584, 599 Nov. 2, 2015.
8 82 FR 7640 Jan. 23, 2017.
9 82 FR 29710 June 30, 2017.
10 83 FR 2029 Jan. 16, 2018; 84 FR 2055 Feb.
6, 2019; 85 FR 2009 Jan. 14, 2020.
11 Public Law 11474, Sec. 701b1, 129 Stat.
584, 599 Nov. 2, 2015.

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also specify that each CMP maximum must be increased by the percentage by which the consumer price index for urban consumers CPIU 12 for October of the year immediately preceding the year the adjustment is made exceeds the CPIU for October of the prior year.13
Thus, for the adjustment to be made in 2021, an agency must compare the October 2019 and October 2020 CPIU
figures.
An annual adjustment under the 2015
amendments is not required if a CMP
has been amended in the preceding 12
months pursuant to other authority.
Specifically, the statute provides that an agency is not required to make an annual adjustment to a CMP if in the preceding 12 months it has been increased by an amount greater than the annual adjustment required by the 2015
amendments.14 The NCUA did not make any adjustments in the preceding 12 months pursuant to other authority.
Therefore, this rulemaking adjusts the NCUAs CMPs pursuant to the 2015
amendments.
B. Application to the 2021 Adjustments and Office of Management and Budget Guidance This section applies the statutory requirements and the Office of Management and Budgets OMB
guidance to the NCUAs CMPs and sets forth the Boards calculation of the 2021
adjustments.
The 2015 amendments directed OMB
to issue guidance to agencies on implementing the inflation adjustments.15 OMB is required to issue its guidance each December and, with respect to the 2021 annual adjustment, did so on December 23, 2020.16 For 2021, Federal agencies must adjust the maximum amounts of their CMPs by the percentage by which the October 2020
CPIU 260.388 exceeds the October 2019 CPIU 257.346. The resulting increase can be expressed as an inflation 12 This index is published by the Department of Labor, Bureau of Labor Statistics, and is available at its website: http www.bls.gov/cpi/.
13 Public Law 11474, Sec. 701b2B, 129 Stat.
584, 600 Nov. 2, 2015.
14 Public Law 11474, Sec. 701b1, 129 Stat.
584, 600 Nov. 2, 2015.
15 Public Law 11474, Sec. 701b4, 129 Stat.
584, 601 Nov. 2, 2015.
16 See OMB Memorandum M2110, Implementation of Penalty Inflation Adjustments for 2021, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015
December 23, 2020.

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