Adjusting Civil Money Penalties for Inflation, 1514-1515 [E7-359]

Download as PDF 1514 Federal Register / Vol. 72, No. 8 / Friday, January 12, 2007 / Notices rmajette on PROD1PC67 with NOTICES • Animal production (NAICS code 112). • Food manufacturing (NAICS code 311). • Pesticide manufacturing (NAICS code 32532). This listing is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be affected by this action. Other types of entities not listed in this unit could also be affected. The North American Industrial Classification System (NAICS) codes have been provided to assist you and others in determining whether this action might apply to certain entities. If you have any questions regarding the applicability of this action to a particular entity, consult the person listed under FOR FURTHER INFORMATION CONTACT. B. What Should I Consider as I Prepare My Comments for EPA? 1. Submitting CBI. Do not submit this information to EPA through regulations.gov or e-mail. Clearly mark the part or all of the information that you claim to be CBI. For CBI information in a disk or CD ROM that you mail to EPA, mark the outside of the disk or CD ROM as CBI and then identify electronically within the disk or CD ROM the specific information that is claimed as CBI. In addition to one complete version of the comment that includes information claimed as CBI, a copy of the comment that does not contain the information claimed as CBI must be submitted for inclusion in the public docket. Information so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. 2. Tips for preparing your comments. When submitting comments, remember to: i. Identify the document by docket ID number and other identifying information (subject heading, Federal Register date and page number). ii. Follow directions. The Agency may ask you to respond to specific questions or organize comments by referencing a Code of Federal Regulations (CFR) part or section number. iii. Explain why you agree or disagree; suggest alternatives and substitute language for your requested changes. iv. Describe any assumptions and provide any technical information and/ or data that you used. v. If you estimate potential costs or burdens, explain how you arrived at your estimate in sufficient detail to allow for it to be reproduced. vi. Provide specific examples to illustrate your concerns and suggest alternatives. VerDate Aug<31>2005 15:41 Jan 11, 2007 Jkt 211001 vii. Explain your views as clearly as possible, avoiding the use of profanity or personal threats. viii. Make sure to submit your comments by the comment period deadline identified. Dated: December 21, 2006. Janet L. Andersen Director, Biopesticides and Pollution Prevention Division, Office of Pesticide Programs. II. What Action is the Agency Taking? BILLING CODE 6560–50–S EPA is printing a summary of each pesticide petition received under section 408 of the Federal Food, Drug, and Cosmetic Act (FFDCA), 21 U.S.C. 346a, proposing the establishment or amendment of regulations in 40 CFR part 180 for residues of pesticide chemicals in or on various food commodities. EPA has determined that this pesticide petition contains data or information regarding the elements set forth in FFDCA section 408(d)(2); however, EPA has not fully evaluated the sufficiency of the submitted data at this time or whether the data support granting of the pesticide petition. Additional data may be needed before EPA rules on this pesticide petition. Pursuant to 40 CFR 180.7(f), a summary of the petition included in this notice, prepared by the petitioner along with a description of the analytical method available for the detection and measurement of the pesticide chemical residues is available on EPA’s Electronic Docket at https://www.regulations.gov. To locate this information on the home page of EPA’s Electronic Docket, select ‘‘Quick Search’’ and type the OPP docket ID number. Once the search has located the docket, clicking on the ‘‘Docket ID’’ will bring up a list of all documents in the docket for the pesticide including the petition summary. Exemption from Tolerance (PP) 3G6547. Syngenta Seeds, Inc., 3054 Cornwallis Road, Research Triangle Park, NC 27709-2257, proposes a time-extension for 3 years until May 1, 2010, for the current exemption from the requirement of a tolerance for residues of the biopesticide, Bacillus thuringiensis VIP3A913 protein and the genetic material necessary for its production, in or on the commodity cotton. Because this petition is a request for an exemption from the requirement of a tolerance without numerical limitations, no analytical method is required. List of Subjects Environmental protection, Agricultural commodities, Feed additives, Food additives, Pesticides and pests, Reporting and recordkeeping requirements. PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 [FR Doc. E7–253 Filed 1–11–07; 8:45 am] FARM CREDIT SYSTEM INSURANCE CORPORATION Adjusting Civil Money Penalties for Inflation Farm Credit System Insurance Corporation. ACTION: Notice. AGENCY: SUMMARY: This notice assesses the need for cost-of-living adjustments to the civil money penalties (CMPs) that the Farm Credit System Insurance Corporation (FCSIC) may impose under the Farm Credit Act of 1971, as amended. The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, requires all Federal agencies with statutory authority to impose CMPs, to regularly evaluate those CMPs and to adjust them periodically for inflation, so they continue to maintain their deterrent value. Consequently, FCSIC is issuing this notice concerning any required adjustments to the CMPs. FOR FURTHER INFORMATION CONTACT: Alan Glenn, Director of Risk Management, Farm Credit System Insurance Corporation, McLean, VA 22102, (703) 883–4384, TTY (703) 883– 4390; or Jane M. Virga, Senior Counsel, Office of General Counsel, Farm Credit Administration, McLean, VA 22102– 5090, (703) 883–4020, TTY (703) 883– 4020. SUPPLEMENTARY INFORMATION: Background A. Statutes Concerning Inflation Adjustment of Civil Money Penalties The Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIA Act),1 as amended by the Debt Collection Improvement Act of 1996 (DCIA),2 provides for the regular evaluation of CMPs and requires FCSIC, and every Federal agency with authority to impose CMPs,3 to ensure that CMPs continue to 1 Pub. L. 101–410, 104 Stat. 890 (October 5, 1990), codified at 28 U.S.C. 2461 note. 2 Pub. L. 104–134, title III, section 31001(s), 110 Stat. 1321–373 (April 26, 1996), codified at 28 U.S.C. 2461 note. 3 Under the amended FCPIA Act, a CMP is defined 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 E:\FR\FM\12JAN1.SGM 12JAN1 Federal Register / Vol. 72, No. 8 / Friday, January 12, 2007 / Notices maintain their deterrent values. An agency must enact regulations that adjust its CMPs pursuant to the inflation adjustment formula of the FCPIA Act. The amended FCPIA Act specifies that inflation-adjusted CMPs will apply only 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) for all consumers (CPI–U).4 Specifically, the term cost-ofliving adjustment is defined as the percentage (if any) for each civil monetary penalty by which the Consumer Price Index for the month of June of the calendar year preceding the adjustment, exceeds 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, any increase to a CMP that is adjusted for inflation must be rounded using a method prescribed by the FCPIA Act. Agencies do not have discretion in choosing whether to adjust a CMP, by how much to adjust a CMP, or the methods used to determine the adjustment. rmajette on PROD1PC67 with NOTICES B. CMPs Imposed Pursuant to Section 5.65 of the Farm Credit Act First, section 5.65(c) of the Farm Credit Act, as amended (Act) provides that any insured Farm Credit System bank that willfully fails or refuses to file any certified statement or pay any premium required under this part shall be subject to a penalty of not more than $100 for each day that such violations continue, which penalty the Corporation may recover for its use. 12 U.S.C. 2277a-14(c). Second, section 5.65(d) of the Act provides that, except with the prior written consent of the Farm Credit Administration, it shall be unlawful for any person convicted of any criminal offense involving dishonesty or a breach of trust to serve as a director, officer, or employee of any System institution. 12 U.S.C. 2277a14(d). For each willful violation of section 5.65(d), the institution involved shall be subject to a penalty of not more than $100 for each day during which the violation continues, which the Corporation may recover for its use. As adjusted for inflation pursuant to the requirements of the DCIA, the 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. All three requirements must be met for a fine to be defined as a CMP. 4 The CPI is published by the Department of Labor, Bureau of Labor Statistics, and is available at its Web site: ftp://ftp.bls.gov/pub/ special.requests/cpi/cpiai.txt. VerDate Aug<31>2005 15:41 Jan 11, 2007 Jkt 211001 current regulation at 12 CFR 1411.1, which was promulgated in 2001, provides that FCSIC can impose a maximum penalty of $117 per day for a violation under section 5.65(c) and (d) of the Act. 1. Mathematical Calculation The adjustment calculation will be based on the percentage by which the CPI for June 2006 exceeds the CPI for June 2001. According to the Bureau of Labor Statistics, the CPI for June 2001 was 178, and the CPI for June 2006 was 202.9, resulting in a percentage change of 14.0 percent. 2. Penalty Amounts Remain the Same in § 1411.1 The maximum CMP in 12 CFR 1411.1 for a violation of section 5.65(c) or (d) of the Act is currently $117. Multiplying $117 by 14 percent results in $16.38. When that number is rounded as required by the FCPIA Act,5 the inflation-adjusted maximum remains the same. Dated: January 9, 2007. Roland Smith, Secretary, Farm Credit System Insurance Corporation Board. [FR Doc. E7–359 Filed 1–11–07; 8:45 am] BILLING CODE 6710–01–P FEDERAL HOUSING FINANCE BOARD [No. 2007–N–02] Notice of Annual Adjustment of the Cap on Average Total Assets That Defines Community Financial Institutions; Notice of Annual Adjustment of the Limits on Annual Compensation for Federal Home Loan Bank Directors AGENCY: Federal Housing Finance Board. ACTION: Notice. SUMMARY: The Federal Housing Finance Board (Finance Board) has adjusted the cap on average total assets that defines a ‘‘Community Financial Institution’’ and the limits on annual compensation for Federal Home Loan Bank (Bank) directors based on the annual percentage increase in the Consumer Price Index for all urban consumers (CPI–U) as published by the Department of Labor (DOL). These changes took effect on January 1, 2007. 5 Any increase must be rounded to the nearest multiple of $100 in the case of penalties greater than $100 but less than or equal to $1,000. Therefore, $16.38 is rounded to the nearest multiple of $100, which is $0. PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 1515 FOR FURTHER INFORMATION CONTACT: Patricia L. Sweeney, Office of Supervision, by telephone at 202–408– 2872, by electronic mail at sweeneyp@fhfb.gov, or by regular mail at the Federal Housing Finance Board, 1625 Eye Street, NW., Washington DC 20006–4001. SUPPLEMENTARY INFORMATION: A. Statutory and Regulatory Background Section 2(13) of the Federal Home Loan Bank Act (Bank Act) and § 925.1 of the Finance Board regulations define a member that is a ‘‘Community Financial Institution’’ (CFI) by the member’s total asset size. See 12 U.S.C. 1422(13)(A) and 12 CFR 925.1. The Bank Act requires the Finance Board annually to adjust the CFI asset cap to reflect any percentage increase in the preceding year’s CPI–U as published by the DOL. See 12 U.S.C. 1422(13)(B). Section 7(i)(2)(B) of the Bank Act and § 918.3(a)(1) of the Finance Board regulations require the Finance Board to make similar annual adjustments to the annual compensation limits for members of the boards of directors of the Banks. See 12 U.S.C. 1427(i)(2) and 12 CFR 918.3(a). Effective January 1, 2007, the CPI adjustment provisions in the Affordable Housing Program (AHP) regulation were removed. See 71 FR 59262 (Oct. 6, 2006) (12 CFR 951.3(a)(1)(iii) and 951.3(a)(2) (removed)). The revised provisions of the AHP regulation are located at 12 CFR 951.2(b)(2)(i) and (b)(3). As a result, this notice does not include any CPI adjustments under the AHP regulation. B. Calculating the Annual Adjustments The annual adjustments to the CFI asset cap and Bank director compensation limits reflect the percentage by which the CPI–U published for November of the preceding calendar year exceeds the CPI–U published for November of the year before the preceding calendar year (if at all). Thus, the adjustments that took effect on January 1, 2007, were based on the percentage increase in the CPI–U from November 2005 to November 2006. The Finance Board uses November data to provide notice of the changes to the annual limits before the January 1st effective date. This practice is consistent with that of other federal agencies. The DOL encourages use of CPI–U data that has not been seasonally adjusted in ‘‘escalation agreements’’ because seasonal factors are updated annually and seasonally adjusted data are subject to revision for up to 5 years following the original release. E:\FR\FM\12JAN1.SGM 12JAN1

Agencies

[Federal Register Volume 72, Number 8 (Friday, January 12, 2007)]
[Notices]
[Pages 1514-1515]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-359]


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FARM CREDIT SYSTEM INSURANCE CORPORATION


Adjusting Civil Money Penalties for Inflation

AGENCY: Farm Credit System Insurance Corporation.

ACTION: Notice.

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SUMMARY: This notice assesses the need for cost-of-living adjustments 
to the civil money penalties (CMPs) that the Farm Credit System 
Insurance Corporation (FCSIC) may impose under the Farm Credit Act of 
1971, as amended. The Federal Civil Penalties Inflation Adjustment Act 
of 1990, as amended by the Debt Collection Improvement Act of 1996, 
requires all Federal agencies with statutory authority to impose CMPs, 
to regularly evaluate those CMPs and to adjust them periodically for 
inflation, so they continue to maintain their deterrent value. 
Consequently, FCSIC is issuing this notice concerning any required 
adjustments to the CMPs.

FOR FURTHER INFORMATION CONTACT: Alan Glenn, Director of Risk 
Management, Farm Credit System Insurance Corporation, McLean, VA 22102, 
(703) 883-4384, TTY (703) 883-4390; or Jane M. Virga, Senior Counsel, 
Office of General Counsel, Farm Credit Administration, McLean, VA 
22102-5090, (703) 883-4020, TTY (703) 883-4020.

SUPPLEMENTARY INFORMATION:

Background

A. Statutes Concerning Inflation Adjustment of Civil Money Penalties

    The Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIA 
Act),\1\ as amended by the Debt Collection Improvement Act of 1996 
(DCIA),\2\ provides for the regular evaluation of CMPs and requires 
FCSIC, and every Federal agency with authority to impose CMPs,\3\ to 
ensure that CMPs continue to

[[Page 1515]]

maintain their deterrent values. An agency must enact regulations that 
adjust its CMPs pursuant to the inflation adjustment formula of the 
FCPIA Act. The amended FCPIA Act specifies that inflation-adjusted CMPs 
will apply only to violations that occur after the effective date of 
the adjustment.
---------------------------------------------------------------------------

    \1\ Pub. L. 101-410, 104 Stat. 890 (October 5, 1990), codified 
at 28 U.S.C. 2461 note.
    \2\ Pub. L. 104-134, title III, section 31001(s), 110 Stat. 
1321-373 (April 26, 1996), codified at 28 U.S.C. 2461 note.
    \3\ Under the amended FCPIA Act, a CMP is defined 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. All three requirements must be met for a fine to be 
defined as a CMP.
---------------------------------------------------------------------------

    The inflation adjustment is based on the percentage increase in the 
Consumer Price Index (CPI) for all consumers (CPI-U).\4\ Specifically, 
the term cost-of-living adjustment is defined as the percentage (if 
any) for each civil monetary penalty by which the Consumer Price Index 
for the month of June of the calendar year preceding the adjustment, 
exceeds 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, any increase to a CMP that is 
adjusted for inflation must be rounded using a method prescribed by the 
FCPIA Act. Agencies do not have discretion in choosing whether to 
adjust a CMP, by how much to adjust a CMP, or the methods used to 
determine the adjustment.
---------------------------------------------------------------------------

    \4\ The CPI is published by the Department of Labor, Bureau of 
Labor Statistics, and is available at its Web site: ftp://
ftp.bls.gov/pub/special.requests/cpi/cpiai.txt.
---------------------------------------------------------------------------

B. CMPs Imposed Pursuant to Section 5.65 of the Farm Credit Act

    First, section 5.65(c) of the Farm Credit Act, as amended (Act) 
provides that any insured Farm Credit System bank that willfully fails 
or refuses to file any certified statement or pay any premium required 
under this part shall be subject to a penalty of not more than $100 for 
each day that such violations continue, which penalty the Corporation 
may recover for its use. 12 U.S.C. 2277a-14(c). Second, section 5.65(d) 
of the Act provides that, except with the prior written consent of the 
Farm Credit Administration, it shall be unlawful for any person 
convicted of any criminal offense involving dishonesty or a breach of 
trust to serve as a director, officer, or employee of any System 
institution. 12 U.S.C. 2277a-14(d). For each willful violation of 
section 5.65(d), the institution involved shall be subject to a penalty 
of not more than $100 for each day during which the violation 
continues, which the Corporation may recover for its use.
    As adjusted for inflation pursuant to the requirements of the DCIA, 
the current regulation at 12 CFR 1411.1, which was promulgated in 2001, 
provides that FCSIC can impose a maximum penalty of $117 per day for a 
violation under section 5.65(c) and (d) of the Act.
1. Mathematical Calculation
    The adjustment calculation will be based on the percentage by which 
the CPI for June 2006 exceeds the CPI for June 2001.
    According to the Bureau of Labor Statistics, the CPI for June 2001 
was 178, and the CPI for June 2006 was 202.9, resulting in a percentage 
change of 14.0 percent.
2. Penalty Amounts Remain the Same in Sec.  1411.1
    The maximum CMP in 12 CFR 1411.1 for a violation of section 5.65(c) 
or (d) of the Act is currently $117. Multiplying $117 by 14 percent 
results in $16.38. When that number is rounded as required by the FCPIA 
Act,\5\ the inflation-adjusted maximum remains the same.
---------------------------------------------------------------------------

    \5\ Any increase must be rounded to the nearest multiple of $100 
in the case of penalties greater than $100 but less than or equal to 
$1,000. Therefore, $16.38 is rounded to the nearest multiple of 
$100, which is $0.

    Dated: January 9, 2007.
 Roland Smith,
Secretary, Farm Credit System Insurance Corporation Board.
 [FR Doc. E7-359 Filed 1-11-07; 8:45 am]
BILLING CODE 6710-01-P
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