Rules of Practice and Procedure; Adjusting Civil Money Penalties for Inflation, 2340-2342 [E9-656]
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Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations
relationship between the national
government and the States, or on the
distribution of power and
responsibilities among the various
levels of government. Therefore, in
accordance with section 6 of Executive
Order 13132, the Department of Justice
has determined that this rule does not
have sufficient federalism implications
to warrant a federalism summary impact
statement.
Executive Order 12988
This rule meets the applicable
standards set forth in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil
Justice Reform.
List of Subjects in Part 1274a
Administrative practice and
procedure, Immigration.
■ Accordingly, for the foregoing
reasons, part 1274a of chapter V of title
8 of the Code of Federal Regulations is
amended as follows:
PART 1274a—CONTROL OF
EMPLOYMENT OF ALIENS
Authority: 8 U.S.C. 1101, 1103, 1324a.
2. Revise § 1274a.1 to read as follows:
(a) Applicable regulations. The
regulations of the Department of
Homeland Security (DHS) relating to the
implementation of the employment
eligibility and verification provisions of
section 274A of the Immigration and
Nationality Act (Act) are contained in 8
CFR part 274a.
(b) Adjudication of civil penalty
proceedings. The procedures for
hearings before an administrative law
judge relating to civil penalties sought
by DHS under section 274A of the Act
are contained in 28 CFR part 68. The
regulations governing employment
eligibility and verification in 8 CFR part
274a are applicable to hearings before
an administrative law judge and, to the
extent relevant, to cases before an
immigration judge or the Board of
Immigration Appeals.
§§ 1274a.2, 1274a.3, 1274a.4, 1274a.5,
1274a.6, 1274a.7 and 1274a.8 [Removed]
3. Remove sections 1274a.2 through
1274a.8.
■ 4. Section 1274a.9 is amended by:
■ a. Removing and reserving paragraphs
(a) through (d);
■ b. Amending paragraph (e) by
removing the terms ‘‘the INS’’ and ‘‘the
Service’’ and adding in their place the
term ‘‘DHS’’; and by
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*
*
*
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(f) Failure to file a request for a
hearing. If the respondent does not file
a request for a hearing in writing within
thirty days of the date of service of a
Notice of Intent to Fine (thirty-five days
if served by ordinary mail), the final
order issued by DHS shall not be subject
to a hearing before an administrative
law judge under 28 CFR part 68.
Subpart B [Removed and reserved]
■
5. Remove and reserve subpart B.
Dated: January 7, 2009.
Michael B. Mukasey,
Attorney General.
[FR Doc. E9–526 Filed 1–14–09; 8:45 am]
BILLING CODE 4410–30–P
FARM CREDIT ADMINISTRATION
Rules of Practice and Procedure;
Adjusting Civil Money Penalties for
Inflation
Farm Credit Administration.
Final rule.
AGENCY:
Employer requirements.
■
Enforcement procedures.
RIN 3052–AC47
1. The authority citation for part
1274a continues to read as follows:
§ 1274a.1
§ 1274a.9
12 CFR Part 622
■
■
c. Revising paragraph (f), to read as
follows:
■
ACTION:
SUMMARY: This regulation implements
cost-of-living adjustments to civil
money penalties (CMPs) that the Farm
Credit Administration (FCA) may
impose under the Farm Credit Act of
1971, as amended (Farm Credit Act),
and under the National Flood Insurance
Reform Act of 1994 (Reform Act). The
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Debt Collection Improvement Act of
1996 (FCPIA Act), requires all Federal
agencies with the authority to impose
CMPs to evaluate those CMPs
periodically to ensure that they
continue to maintain their deterrent
value.
DATES: Effective Date: The regulation
will become effective on January 16,
2009.
FOR FURTHER INFORMATION CONTACT:
Michael T. Wilson, Policy Analyst,
Office of Regulatory Policy, Farm
Credit Administration, McLean, VA
22102–5090, (703) 883–4124, TTY
(703) 883–4434,
or
Howard I. Rubin, Senior Counsel, Office
of General Counsel, Farm Credit
Administration, McLean, VA 22102–
5090, (703) 883–4029, TTY (703) 883–
4020.
PO 00000
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SUPPLEMENTARY INFORMATION:
I. Objective
The objective of this regulation is to
recalculate the CMP inflation
adjustments consistent with the FCPIA
Act.
II. Background
A. Federal Civil Penalties Inflation
Adjustment Act of 1990, as Amended
The FCPIA Act requires every Federal
agency with authority to issue CMPs to
enact regulations that adjust its CMPs
pursuant to the inflation adjustment
formula in section 5(b) of the FCPIA
Act.1 Each Federal agency was required
to issue these regulations by October 23,
1996, and adjust them when necessary
at least once every 4 years thereafter.
Section 6 of 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).2
Specifically, section 5(b) of the FCPIA
Act defines the term ‘‘cost-of-living
adjustment’’ as ‘‘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, the increase for each
CMP that is adjusted for inflation must
be rounded using a method prescribed
by section 5(a) of the FCPIA Act.
B. CMPs Issued Under the Farm Credit
Act
Section 5.32(a) of the Farm Credit Act
provides that any FCS institution or any
officer, director, employee, agent, or
other person participating in the
conduct of the affairs of an FCS
institution who violates the terms of a
final order issued under section 5.25 or
5.26 of the Farm Credit Act must pay up
to $1,000 per day for each day during
which such violation continues. Orders
issued by FCA under section 5.25 or
5.26 of the Farm Credit Act include
1 See 28 U.S.C. 2461 note. 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.
2 The CPI is published by the Department of
Labor, Bureau of Statistics, and is available at its
Web site: ftp://ftp.bls.gov/pub/special.requests/cpi/
cpiai.txt.
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temporary and permanent cease-anddesist orders. In addition, section
5.32(h) provides that any directive
issued under sections 4.3(b)(2), 4.3A(e),
or 4.14A(i) of the Farm Credit Act ‘‘shall
be treated’’ as a final order issued under
section 5.25 for purposes of assessing a
CMP. Section 5.32(a) also states that
‘‘[a]ny such institution or person who
violates any provision of the [Farm
Credit] Act or any regulation issued
under this Act shall forfeit and pay a
civil penalty of not more that $500 per
day for each day during which such
violation continues.’’
1. Mathematical Calculation
In general, the adjustment calculation
is based on the percentage by which the
CPI for June 2008 exceeds the CPI for
June of the calendar year the CMP was
last adjusted. The CMP for violation of
the terms of a final order issued under
section 5.25 or 5.26 of the Farm Credit
Act was last adjusted in 1996. The CMP
for a violation of the Farm Credit Act,
or a regulation issued under the Farm
Credit Act, was last adjusted in 2005.
According to the Bureau of Labor
Statistics, the CPI for June 1996 and
June 2005 was 156.7 and 194.5,
respectively. The CPI for June 2008 was
218.815, resulting in a percentage
change of 39.64 percent from June 1996
and 12.50 percent from June 2005.
2. Penalty Amount Remains the Same in
§ 622.61(a)(1)
The maximum CMP in § 622.61(a) for
a violation of a final order issued under
section 5.25 or 5.26 of the Farm Credit
Act is currently $1,100.3
Multiplying $1,100 by 39.64 4 percent
results in an increase of $436.04. When
that number is rounded as required by
section 5(a) of the FCPIA Act, the
inflation-adjusted maximum remains
$1,100.
3. New Penalty Amount in § 622.61(a)(2)
The maximum CMP in existing
§ 622.61(a)(2) for a violation of the Farm
Credit Act or regulations issued under
the Farm Credit Act is $650. When
multiplying the existing CMP amount
by 12.50 percent, this results in an
increase of $81.25. This increase is
rounded to $100 as required by section
5(a) of the FCPIA Act, and the inflationadjusted maximum increases to $750.
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3 See
70 FR 12583 (March 15, 2005).
a result of the mathematical calculation for
the year 2005 and the required rounding
application, the penalty amount remained the same
and did not reset. Therefore, in accordance with the
FCPIA Act, the calculation for the 2009 adjustment
was determined by using the June 1996 CPI of 156.7
and the June 2008 CPI of 218.815 resulting in a
percentage change of 39.64 percent.
4 As
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2341
C. CMPs Issued Under the Reform Act
IV. Regulatory Flexibility Act
The Flood Disaster Protection Act of
1973, as amended by the Reform Act,
requires that FCA assess a CMP for a
pattern or practice of committing certain
specific actions in violation of the
National Flood Insurance Program.5
Under the Reform Act, which became
law in 1994, these CMPs were not to
exceed $350 for each violation, and the
total amount of penalties assessed for
certain violations of the program against
any single regulated entity during any
calendar year was not to exceed
$100,000.6
Pursuant to section 605(b) of the
Regulatory Flexibility Act (5 U.S.C. 601
et seq.), the FCA hereby certifies that the
final rule will not have a significant
economic impact on a substantial
number of small entities. Each of the
banks in the System, considered
together with its affiliated associations,
has assets and annual income in excess
of the amounts that would qualify them
as small entities. Therefore, System
institutions are not ‘‘small entities’’ as
defined in the Regulatory Flexibility
Act.
List of Subjects 12 CFR Part 622
1. Mathematical Calculation
The adjustment calculation for these
CMPs is based on the percentage by
which the CPI for June 2008 exceeds the
CPI for June 2005, the calendar the
CMPs were last adjusted. As stated
above, the CPI for June 2005 was 194.5,
and the CPI for June 2008 was 218.815,
resulting in a percentage change of
12.50.
2. New Penalty Amounts in § 622.61(b)
Multiplying $385 by 12.50 percent
yields a $48.13 increase. This amount is
rounded downward to $0.00 under the
FCPIA rounding formula. Accordingly,
the CMP maximum for each violation
will remain $385. Similarly, multiplying
the $110,000 total cap by 12.50 percent
yields a $13,750 increase. This increase
is rounded to $10,000 under the FCPIA
rounding formula, bringing the new cap
to $120,000 in total penalties that may
be assessed under the Reform Act
against any single regulated entity
during any calendar year.
III. Notice and Comment Not Required
by Administrative Procedure Act
The FCPIA Act gives Federal agencies
no discretion in the adjustment of CMPs
for the rate of inflation. Further, these
revisions are ministerial, technical, and
noncontroversial. For these reasons, the
FCA finds good cause to determine that
public notice and an opportunity to
comment are impracticable,
unnecessary, and contrary to the public
interest pursuant to the Administrative
Procedure Act, 5 U.S.C. 553(b)(B), and
adopts this rule in final form. For all of
the foregoing reasons, the FCA also
finds good cause to determine that this
regulation should become effective
immediately, pursuant to the
Administrative Procedure Act, 5 U.S.C.
553(d).
5 See
6 42
PO 00000
42 U.S.C. 4012a.
U.S.C. 4012a(f).
Frm 00049
Fmt 4700
Sfmt 4700
Administrative practice and
procedure, Crime, Investigations,
Penalties.
■ For the reasons stated in the preamble,
part 622 of chapter VI, title 12 of the
Code of Federal Regulations is amended
to read as follows:
PART 622—RULES OF PRACTICE AND
PROCEDURE
1. The authority citation for part 622
continues to read as follows:
■
Authority: Secs. 5.9, 5.10, 5.17, 5.25–5.37
of the Farm Credit Act (12 U.S.C. 2243, 2244,
2252, 2261–2273); 28 U.S.C. 2461 note; and
42 U.S.C. 4012a(f).
Subpart B—Rules and Procedures for
Assessment and Collection of Civil
Money Penalties
■
2. Revise § 622.61 to read as follows:
§ 622.61 Adjustment of civil money
penalties by the rate of inflation under the
Federal Civil Penalties Inflation Adjustment
Act of 1990, as amended.
(a) The maximum amount of each
civil money penalty within FCA’s
jurisdiction is adjusted in accordance
with the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended (28 U.S.C. 2461 note), as
follows:
(1) Amount of civil money penalty
imposed under section 5.32 of the Act
for violation of a final order issued
under section 5.25 or 5.26 of the Act:
The maximum daily amount is $1,100.
(2) Amount of civil money penalty for
violation of the Act or regulations: The
maximum daily amount is $550 for each
violation that occurs before March 16,
2005, $650 for each violation that occurs
on or after March 16, 2005, but before
January 16, 2009, and $750 for each
violation that occurs on or after January
16, 2009.
(b) The maximum civil money penalty
amount assessed under 42 U.S.C.
4012a(f) is $350 for each violation that
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Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations
occurs before March 16, 2005, with total
penalties under such statute not to
exceed $110,000 for any single
institution during any calendar year. For
violations that occur on or after March
16, 2005, but before January 16, 2009,
the maximum civil money penalty is
$385 for each violation, with total
penalties under such statute not to
exceed $110,000 for any single
institution during any calendar year. For
violations that occur on or after January
16, 2009, the maximum civil money
penalty is $385 for each violation, with
total penalties under such statute not to
exceed $120,000 for any single
institution during any calendar year.
Date: January 9, 2009.
Roland E. Smith,
Secretary, Farm Credit Administration Board.
[FR Doc. E9–656 Filed 1–14–09; 8:45 am]
BILLING CODE 6705–01–P
FEDERAL HOUSING FINANCE
AGENCY
12 CFR Part 1202
RIN 2590–AA05
Freedom of Information Act
AGENCY: Federal Housing Finance
Agency.
ACTION: Final rule.
The Federal Housing Finance
Agency (FHFA) issues this regulation
hereby implementing the Freedom of
Information Act (FOIA) (U.S.C. 552),
establishing procedures for public
disclosure of information required to be
disclosed under the FOIA and
procedures to protect from disclosure
business confidential and trade secret
information, as appropriate.
DATES: This final regulation is effective
January 15, 2009. For additional
information, see SUPPLEMENTARY
INFORMATION.
SUMMARY:
The complete file for this
rule is available for public inspection,
by appointment, during normal business
hours at the Federal Housing Finance
Agency, 1700 G Street, NW.,
Washington, DC 20552.
FOR FURTHER INFORMATION CONTACT:
Mark D. Laponsky, Deputy General
Counsel, telephone (202) 414–3832, (not
a toll free number), Federal Housing
Finance Agency, Fourth Floor, 1700 G
Street, NW., Washington, DC 20552. The
telephone number for the
Telecommunications Device for the Deaf
is (800) 877–8339.
SUPPLEMENTARY INFORMATION:
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ADDRESSES:
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16:54 Jan 14, 2009
Jkt 217001
I. Background
The Federal Housing Finance
Regulatory Reform Act of 2008 (Act)
(Pub. L. 110–289), established FHFA as
an independent agency of the Federal
Government to ensure that the Federal
National Mortgage Association (Fannie
Mae), the Federal Home Loan Mortgage
Corporation (Freddie Mac) and the
Federal Home Loan Banks (collectively,
the Regulated Entities) are capitalized
adequately and operate safely and
soundly and in compliance with
applicable laws, rules and regulations.
On October 10, 2008, the Federal
Housing Finance Agency (FHFA)
published a proposed rule
implementing the Freedom of
Information Act (FOIA) (U.S.C. 552) in
the Federal Register, establishing
procedures for public disclosure of
information required to be disclosed
under the FOIA and procedures to
protect from disclosure business
confidential and trade secret
information, as appropriate. See 73 FR
60192, October 10, 2008. Interested
persons were afforded an opportunity to
participate in the rulemaking through
submission of written comments on the
proposed rule. The comment period
closed on November 10, 2008. Though
the FHFA received one comment during
the 30-day comment period, a
modification to the proposed regulation
is not necessary. The FHFA’s final
regulations in this part are identical to
those in the proposed rule. This final
rule addresses electronically available
documents, procedures for making
requests, agency handling of requests,
records not disclosed, fees, and public
reading rooms as well as other related
provisions.
II. Analysis of Comment Received and
Final Rule
In response to the proposed rule, the
FHFA received one comment from a
Bank. The Bank suggested modifying
section 1202.7 to shorten FHFA’s
response time from 20 working days for
standard track requests to 10 working
days, further stating, 10 days will best
satisfy the twin objectives of providing
needed information within a reasonable
timeframe while allowing ample time to
the FHFA to respond to routine
requests.
Due consideration has been given to
the comment received. The 20 working
days period is a statutory maximum
limit in 5 U.S.C. 552. The FHFA
anticipates that many standard track
requests will be processed within 10
working days. The full statutory period
accounts for unforeseen complications
that can arise during request review and
PO 00000
Frm 00050
Fmt 4700
Sfmt 4700
analysis. Therefore, to provide for the
efficient operation of the rule, the FHFA
is not adopting the modification
suggested by the commenter.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) requires that a
regulation that has a significant
economic impact on a substantial
number of small entities, small
businesses, or small organizations must
include an initial regulatory flexibility
analysis describing the regulation’s
impact on small entities. Such an
analysis need not be undertaken if the
agency has certified that the regulation
does not have a significant economic
impact on a substantial number of small
entities 5 U.S.C. 605(b). The FHFA has
considered the impact of the final
regulations of this part under the
Regulatory Flexibility Act and certifies
they are not likely to have a significant
economic impact on a substantial
number of small business entities
because the regulation is applicable
only to the internal operations and legal
obligations of the FHFA.
Paperwork Reduction Act
The final regulations in this part do
not contain any information collection
requirement that requires the approval
of OMB under the Paperwork Reduction
Act (44 U.S.C. 3501 et seq.).
List of Subjects in 12 CFR Part 1202
Appeals, Confidential commercial
information, Disclosure, Exemptions,
Fees, Final action, Freedom of
Information Act, Judicial review,
Records, Requests.
■ For the reasons stated in the preamble,
the FHFA amends 12 CFR chapter XII
by adding part 1202 to subchapter A.
PART 1202—FREEDOM OF
INFORMATION ACT
Sec.
1202.1 Why did FHFA issue this part?
1202.2 What do the terms in this part
mean?
1202.3 What information can I obtain
through FOIA?
1202.4 What information is exempt from
disclosure?
1202.5 How do I request information from
FHFA under FOIA?
1202.6 What if my request does not have all
the information FHFA requires?
1202.7 How will FHFA respond to my
FOIA request?
1202.8 If the records I request contain
confidential commercial information,
what procedures will FHFA follow?
1202.9 How do I appeal a response denying
my FOIA request?
1202.10 Will FHFA expedite my request or
appeal?
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Agencies
[Federal Register Volume 74, Number 10 (Thursday, January 15, 2009)]
[Rules and Regulations]
[Pages 2340-2342]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-656]
=======================================================================
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FARM CREDIT ADMINISTRATION
12 CFR Part 622
RIN 3052-AC47
Rules of Practice and Procedure; Adjusting Civil Money Penalties
for Inflation
AGENCY: Farm Credit Administration.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This regulation implements cost-of-living adjustments to civil
money penalties (CMPs) that the Farm Credit Administration (FCA) may
impose under the Farm Credit Act of 1971, as amended (Farm Credit Act),
and under the National Flood Insurance Reform Act of 1994 (Reform Act).
The Federal Civil Penalties Inflation Adjustment Act of 1990, as
amended by the Debt Collection Improvement Act of 1996 (FCPIA Act),
requires all Federal agencies with the authority to impose CMPs to
evaluate those CMPs periodically to ensure that they continue to
maintain their deterrent value.
DATES: Effective Date: The regulation will become effective on January
16, 2009.
FOR FURTHER INFORMATION CONTACT:
Michael T. Wilson, Policy Analyst, Office of Regulatory Policy, Farm
Credit Administration, McLean, VA 22102-5090, (703) 883-4124, TTY (703)
883-4434,
or
Howard I. Rubin, Senior Counsel, Office of General Counsel, Farm Credit
Administration, McLean, VA 22102-5090, (703) 883-4029, TTY (703) 883-
4020.
SUPPLEMENTARY INFORMATION:
I. Objective
The objective of this regulation is to recalculate the CMP
inflation adjustments consistent with the FCPIA Act.
II. Background
A. Federal Civil Penalties Inflation Adjustment Act of 1990, as Amended
The FCPIA Act requires every Federal agency with authority to issue
CMPs to enact regulations that adjust its CMPs pursuant to the
inflation adjustment formula in section 5(b) of the FCPIA Act.\1\ Each
Federal agency was required to issue these regulations by October 23,
1996, and adjust them when necessary at least once every 4 years
thereafter. Section 6 of 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).\2\
Specifically, section 5(b) of the FCPIA Act defines the term ``cost-of-
living adjustment'' as ``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, the increase for each CMP that
is adjusted for inflation must be rounded using a method prescribed by
section 5(a) of the FCPIA Act.
---------------------------------------------------------------------------
\1\ See 28 U.S.C. 2461 note. 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.
\2\ The CPI is published by the Department of Labor, Bureau of
Statistics, and is available at its Web site: ftp://ftp.bls.gov/pub/
special.requests/cpi/cpiai.txt.
---------------------------------------------------------------------------
B. CMPs Issued Under the Farm Credit Act
Section 5.32(a) of the Farm Credit Act provides that any FCS
institution or any officer, director, employee, agent, or other person
participating in the conduct of the affairs of an FCS institution who
violates the terms of a final order issued under section 5.25 or 5.26
of the Farm Credit Act must pay up to $1,000 per day for each day
during which such violation continues. Orders issued by FCA under
section 5.25 or 5.26 of the Farm Credit Act include
[[Page 2341]]
temporary and permanent cease-and-desist orders. In addition, section
5.32(h) provides that any directive issued under sections 4.3(b)(2),
4.3A(e), or 4.14A(i) of the Farm Credit Act ``shall be treated'' as a
final order issued under section 5.25 for purposes of assessing a CMP.
Section 5.32(a) also states that ``[a]ny such institution or person who
violates any provision of the [Farm Credit] Act or any regulation
issued under this Act shall forfeit and pay a civil penalty of not more
that $500 per day for each day during which such violation continues.''
1. Mathematical Calculation
In general, the adjustment calculation is based on the percentage
by which the CPI for June 2008 exceeds the CPI for June of the calendar
year the CMP was last adjusted. The CMP for violation of the terms of a
final order issued under section 5.25 or 5.26 of the Farm Credit Act
was last adjusted in 1996. The CMP for a violation of the Farm Credit
Act, or a regulation issued under the Farm Credit Act, was last
adjusted in 2005. According to the Bureau of Labor Statistics, the CPI
for June 1996 and June 2005 was 156.7 and 194.5, respectively. The CPI
for June 2008 was 218.815, resulting in a percentage change of 39.64
percent from June 1996 and 12.50 percent from June 2005.
2. Penalty Amount Remains the Same in Sec. 622.61(a)(1)
The maximum CMP in Sec. 622.61(a) for a violation of a final order
issued under section 5.25 or 5.26 of the Farm Credit Act is currently
$1,100.\3\
---------------------------------------------------------------------------
\3\ See 70 FR 12583 (March 15, 2005).
---------------------------------------------------------------------------
Multiplying $1,100 by 39.64 \4\ percent results in an increase of
$436.04. When that number is rounded as required by section 5(a) of the
FCPIA Act, the inflation-adjusted maximum remains $1,100.
---------------------------------------------------------------------------
\4\ As a result of the mathematical calculation for the year
2005 and the required rounding application, the penalty amount
remained the same and did not reset. Therefore, in accordance with
the FCPIA Act, the calculation for the 2009 adjustment was
determined by using the June 1996 CPI of 156.7 and the June 2008 CPI
of 218.815 resulting in a percentage change of 39.64 percent.
---------------------------------------------------------------------------
3. New Penalty Amount in Sec. 622.61(a)(2)
The maximum CMP in existing Sec. 622.61(a)(2) for a violation of
the Farm Credit Act or regulations issued under the Farm Credit Act is
$650. When multiplying the existing CMP amount by 12.50 percent, this
results in an increase of $81.25. This increase is rounded to $100 as
required by section 5(a) of the FCPIA Act, and the inflation-adjusted
maximum increases to $750.
C. CMPs Issued Under the Reform Act
The Flood Disaster Protection Act of 1973, as amended by the Reform
Act, requires that FCA assess a CMP for a pattern or practice of
committing certain specific actions in violation of the National Flood
Insurance Program.\5\ Under the Reform Act, which became law in 1994,
these CMPs were not to exceed $350 for each violation, and the total
amount of penalties assessed for certain violations of the program
against any single regulated entity during any calendar year was not to
exceed $100,000.\6\
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\5\ See 42 U.S.C. 4012a.
\6\ 42 U.S.C. 4012a(f).
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1. Mathematical Calculation
The adjustment calculation for these CMPs is based on the
percentage by which the CPI for June 2008 exceeds the CPI for June
2005, the calendar the CMPs were last adjusted. As stated above, the
CPI for June 2005 was 194.5, and the CPI for June 2008 was 218.815,
resulting in a percentage change of 12.50.
2. New Penalty Amounts in Sec. 622.61(b)
Multiplying $385 by 12.50 percent yields a $48.13 increase. This
amount is rounded downward to $0.00 under the FCPIA rounding formula.
Accordingly, the CMP maximum for each violation will remain $385.
Similarly, multiplying the $110,000 total cap by 12.50 percent yields a
$13,750 increase. This increase is rounded to $10,000 under the FCPIA
rounding formula, bringing the new cap to $120,000 in total penalties
that may be assessed under the Reform Act against any single regulated
entity during any calendar year.
III. Notice and Comment Not Required by Administrative Procedure Act
The FCPIA Act gives Federal agencies no discretion in the
adjustment of CMPs for the rate of inflation. Further, these revisions
are ministerial, technical, and noncontroversial. For these reasons,
the FCA finds good cause to determine that public notice and an
opportunity to comment are impracticable, unnecessary, and contrary to
the public interest pursuant to the Administrative Procedure Act, 5
U.S.C. 553(b)(B), and adopts this rule in final form. For all of the
foregoing reasons, the FCA also finds good cause to determine that this
regulation should become effective immediately, pursuant to the
Administrative Procedure Act, 5 U.S.C. 553(d).
IV. Regulatory Flexibility Act
Pursuant to section 605(b) of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.), the FCA hereby certifies that the final rule will
not have a significant economic impact on a substantial number of small
entities. Each of the banks in the System, considered together with its
affiliated associations, has assets and annual income in excess of the
amounts that would qualify them as small entities. Therefore, System
institutions are not ``small entities'' as defined in the Regulatory
Flexibility Act.
List of Subjects 12 CFR Part 622
Administrative practice and procedure, Crime, Investigations,
Penalties.
0
For the reasons stated in the preamble, part 622 of chapter VI, title
12 of the Code of Federal Regulations is amended to read as follows:
PART 622--RULES OF PRACTICE AND PROCEDURE
0
1. The authority citation for part 622 continues to read as follows:
Authority: Secs. 5.9, 5.10, 5.17, 5.25-5.37 of the Farm Credit
Act (12 U.S.C. 2243, 2244, 2252, 2261-2273); 28 U.S.C. 2461 note;
and 42 U.S.C. 4012a(f).
Subpart B--Rules and Procedures for Assessment and Collection of
Civil Money Penalties
0
2. Revise Sec. 622.61 to read as follows:
Sec. 622.61 Adjustment of civil money penalties by the rate of
inflation under the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended.
(a) The maximum amount of each civil money penalty within FCA's
jurisdiction is adjusted in accordance with the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended (28 U.S.C. 2461 note), as
follows:
(1) Amount of civil money penalty imposed under section 5.32 of the
Act for violation of a final order issued under section 5.25 or 5.26 of
the Act: The maximum daily amount is $1,100.
(2) Amount of civil money penalty for violation of the Act or
regulations: The maximum daily amount is $550 for each violation that
occurs before March 16, 2005, $650 for each violation that occurs on or
after March 16, 2005, but before January 16, 2009, and $750 for each
violation that occurs on or after January 16, 2009.
(b) The maximum civil money penalty amount assessed under 42 U.S.C.
4012a(f) is $350 for each violation that
[[Page 2342]]
occurs before March 16, 2005, with total penalties under such statute
not to exceed $110,000 for any single institution during any calendar
year. For violations that occur on or after March 16, 2005, but before
January 16, 2009, the maximum civil money penalty is $385 for each
violation, with total penalties under such statute not to exceed
$110,000 for any single institution during any calendar year. For
violations that occur on or after January 16, 2009, the maximum civil
money penalty is $385 for each violation, with total penalties under
such statute not to exceed $120,000 for any single institution during
any calendar year.
Date: January 9, 2009.
Roland E. Smith,
Secretary, Farm Credit Administration Board.
[FR Doc. E9-656 Filed 1-14-09; 8:45 am]
BILLING CODE 6705-01-P