Rules of Practice and Procedure; Adjusting Civil Money Penalties for Inflation, 2031-2032 [2022-00577]

Download as PDF jspears on DSK121TN23PROD with RULES1 Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations § 209.4 Amounts and payments for subscriptions and cancellations; timing and rate of dividends. FARM CREDIT SYSTEM INSURANCE CORPORATION (a) Amount of subscription. The total subscription of a member bank (other than a mutual savings bank) shall equal six percent of its capital and surplus as shown on its most recent Call Report. After a member bank files a Call Report, the appropriate Reserve Bank will adjust the member bank’s Reserve Bank capital stock subscription to equal six percent of the member bank’s capital and surplus. (b) Mutual savings banks. The total subscription of a member bank that is a mutual savings bank shall equal sixtenths of 1 percent of its total deposit liabilities as shown on its most recent Call Report. After a member bank that is a mutual savings bank files a Call Report, the appropriate Reserve Bank will adjust the member bank’s Reserve Bank capital stock subscription to equal six-tenths of 1 percent of the member bank’s total deposit liabilities. If a mutual savings bank has a deposit with the appropriate Reserve Bank in lieu of Reserve Bank capital stock, its deposit obligation shall be adjusted in a like manner. (c) * * * (1) When a Reserve Bank issues capital stock to a member bank (or accepts a deposit in lieu thereof), the member bank shall pay the Reserve Bank— * * * * * (2) A Reserve Bank shall obtain settlement for the payment described in paragraph (c)(1) of this section by debit to an account on the Reserve Bank’s books or other form of settlement to which the Reserve Bank agrees. * * * * * (d) * * * (1) When a Reserve Bank cancels Reserve Bank capital stock of a member bank, or (in the case of involuntary termination of membership) upon the effective date of cancellation specified in § 209.3(c)(3), the Reserve Bank shall— * * * * * 12 CFR Part 1411 By order of the Board of Governors of the Federal Reserve System. Ann Misback, Secretary of the Board. [FR Doc. 2022–00503 Filed 1–12–22; 8:45 am] BILLING CODE 6210–01–P VerDate Sep<11>2014 16:51 Jan 12, 2022 Jkt 256001 RIN 3055–AA18 Rules of Practice and Procedure; Adjusting Civil Money Penalties for Inflation Farm Credit System Insurance Corporation. ACTION: Final rule. AGENCY: This rule implements inflation adjustments to civil money penalties (CMPs) that the Farm Credit System Insurance Corporation (FCSIC) may impose under the Farm Credit Act of 1971, as amended. These adjustments are required by 2015 amendments to the Federal Civil Penalties Inflation Adjustment Act of 1990. DATES: Effective date: This regulation is effective on January 13, 2022. Applicability date: The adjusted amounts of civil money penalties in this rule are applicable to penalties assessed on or after January 15, 2022, for conduct occurring on or after November 2, 2015. FOR FURTHER INFORMATION CONTACT: Lynn M. Powalski, General Counsel, Farm Credit System Insurance Corporation, 1501 Farm Credit Drive, McLean, Virginia 22102, (703) 883– 4380, TTY (703) 883–4390. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act) amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act) 1 to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The Inflation Adjustment Act provides for the regular evaluation of CMPs and requires FCSIC, and every other Federal agency with authority to impose CMPs, to ensure that CMPs continue to maintain their deterrent values.2 1 Public Law 101–410, 104 Stat. 890 (Oct. 5, 1990), as amended by Public Law 104–134, title III, § 31001(s)(1), 110 Stat. 1321–373 (Apr. 26, 1996); Public Law 105–362, title XIII, § 1301(a), 112 Stat. 3293 (Nov. 10, 1998); Public Law 114–74, title VII, § 701(b), 129 Stat. 599 (Nov. 2, 2015), codified at 28 U.S.C. 2461 note. 2 Under the amended Inflation Adjustment 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 considered a CMP. PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 2031 FCSIC must enact regulations that annually adjust its CMPs pursuant to the inflation adjustment formula of the amended Inflation Adjustment Act and rounded using a method prescribed by the Inflation Adjustment Act. The new amounts are applicable to penalties assessed on or after January 15, 2022, for conduct occurring on or after November 2, 2015. 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. II. 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 required premium shall be subject to a penalty of not more than $100 for each day that such violations continue, which penalty FCSIC may recover for its use.3 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.4 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 FCSIC may recover for its use. FCSIC’s current § 1411.1 provides that FCSIC can impose a maximum penalty of $217 per day for a violation under section 5.65(c) and (d) of the Act. III. Required Adjustments The 2015 Act requires agencies to make annual adjustments for inflation. Annual inflation adjustments are based on the percent change between the October Consumer Price Index for all Urban Consumers (CPI–U) preceding the date of the adjustment, and the prior year’s October CPI–U. Based on the CPI– U for October 2021, not seasonally adjusted, the cost-of-living adjustment multiplier for 2022 is 1.06222.5 Multiplying 1.06222 times the current penalty amount of $217, after rounding to the nearest dollar as required by the 3 12 U.S.C. 2277a–14(c). U.S.C. 2277a–14(d). 5 See Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M–22–07, Implementation of Penalty Inflation Adjustments for 2020, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (December 15, 2021). 4 12 E:\FR\FM\13JAR1.SGM 13JAR1 2032 Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations 2015 Act, results in a new penalty amount of $231. DEPARTMENT OF TRANSPORTATION IV. Notice and Comment Not Required by Administrative Procedure Act In accordance with the 2015 Act, Federal agencies shall adjust civil monetary penalties ‘‘notwithstanding’’ Section 553 of the Administrative Procedures Act. This means that public procedure generally required for agency rulemaking—notice, an opportunity for comment, and a delay in effective date—is not required for agencies to issue regulations implementing the annual adjustment. List of Subjects in 12 CFR Part 1411 Banks, Banking, Civil money penalties, Penalties. For the reasons stated in the preamble, part 1411 of chapter XIV, title 12 of the Code of Federal Regulations is amended as follows: PART 1411—RULES OF PRACTICE AND PROCEDURE 1. The authority citation for part 1411 continues to read as follows: ■ Authority: Secs. 5.58(10), 5.65(c) and (d) of the Farm Credit Act (12 U.S.C. 2277a– 7(10), 2277a–14(c) and (d)); 28 U.S.C. 2461 note. ■ 2. Revise § 1411.1 to read as follows: § 1411.1 Inflation adjustment of civil money penalties for failure to file a certified statement, pay any premium required or obtain approval before employment of persons convicted of criminal offenses. In accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, a civil money penalty imposed pursuant to section 5.65(c) or (d) of the Farm Credit Act of 1971, as amended, shall not exceed $231 per day for each day the violation continues. Dated: January 10, 2022. Ashley Waldron, Secretary, Farm Credit System Insurance Corporation. [FR Doc. 2022–00577 Filed 1–12–22; 8:45 am] jspears on DSK121TN23PROD with RULES1 BILLING CODE 6710–01–P Federal Aviation Administration 14 CFR Part 71 [Docket No. FAA–2021–0820; Airspace Docket No. 21–ASO–29] RIN 2120–AA66 Amendment of Class E Airspace; Covington, GA Federal Aviation Administration (FAA), DOT. ACTION: Final rule. AGENCY: This action amends Class E airspace extending upward from 700 feet above the surface for Covington Municipal Airport, Covington, GA. This action is the result of an airspace review caused by the decommissioning of the ALCOVY Non-directional Beacon (NDB) and cancellation of the associated approaches. Controlled airspace is necessary for the safety and management of instrument flight rules (IFR) operations in the area. DATES: Effective 0901 UTC, March 24, 2022. The Director of the Federal Register approves this incorporation by reference action under 1 CFR part 51, subject to the annual revision of FAA Order JO 7400.11 and publication of conforming amendments. ADDRESSES: FAA Order JO 7400.11F, Airspace Designations and Reporting Points, and subsequent amendments can be viewed online at https:// www.faa.gov/air_traffic/publications/. For further information, you can contact the Airspace Policy Group, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; Telephone: (202) 267–8783. FAA Order JO 7400.11F is also available for inspection at the National Archives and Records Administration (NARA). For information on the availability of FAA Order JO 7400.11F at NARA, email fr.inspection@nara.gov or go to https:// www.archives.gov/federal-register/cfr/ ibr-locations.html. FOR FURTHER INFORMATION CONTACT: John Fornito, Operations Support Group, Eastern Service Center, Federal Aviation Administration, 1701 Columbia Ave., College Park, GA 30337; Telephone (404) 305–6364. SUPPLEMENTARY INFORMATION: SUMMARY: Authority for This Rulemaking The FAA’s authority to issue rules regarding aviation safety is found in VerDate Sep<11>2014 16:51 Jan 12, 2022 Jkt 256001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 Title 49 of the United States Code. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency’s authority. This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it amends the Class E airspace extending upward from 700 feet above the surface for Covington Municipal Airport, Covington, GA, to support IFR operations in the area. History The FAA published a notice of proposed rulemaking in the Federal Register (86 FR 57083, October 14, 2021) for Docket No. FAA–2021–0820 to amend Class E airspace extending upward from 700 feet above the surface at Covington Municipal Airport, Covington, GA. Interested parties were invited to participate in this rulemaking effort by submitting written comments on the proposal to the FAA. No comments were received. Class E airspace designations are published in Paragraph 6005, of FAA Order JO 7400.11F, dated August 10, 2021, and effective September 15, 2021, which is incorporated by reference in 14 CFR 71.1. The Class E airspace designations listed in this document will be published subsequently in FAA Order JO 7400.11F. Availability and Summary of Documents for Incorporation by Reference This document amends FAA Order JO 7400.11F, Airspace Designations and Reporting Points, dated August 10, 2021, and effective September 15, 2021. FAA Order JO 7400.11F is publicly available as listed in the ADDRESSES section of this document. FAA Order JO 7400.11F lists Class A, B, C, D, and E airspace areas, air traffic routes, and reporting points. The Rule The FAA is amending 14 CFR part 71 by amending the Class E airspace extending upward from 700 feet above the surface at Covington Municipal Airport, Covington, GA, as the ACOVY NDB is being decommissioned. E:\FR\FM\13JAR1.SGM 13JAR1

Agencies

[Federal Register Volume 87, Number 9 (Thursday, January 13, 2022)]
[Rules and Regulations]
[Pages 2031-2032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00577]


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FARM CREDIT SYSTEM INSURANCE CORPORATION

12 CFR Part 1411

RIN 3055-AA18


Rules of Practice and Procedure; Adjusting Civil Money Penalties 
for Inflation

AGENCY: Farm Credit System Insurance Corporation.

ACTION: Final rule.

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SUMMARY: This rule implements inflation adjustments to civil money 
penalties (CMPs) that the Farm Credit System Insurance Corporation 
(FCSIC) may impose under the Farm Credit Act of 1971, as amended. These 
adjustments are required by 2015 amendments to the Federal Civil 
Penalties Inflation Adjustment Act of 1990.

DATES: Effective date: This regulation is effective on January 13, 
2022. Applicability date: The adjusted amounts of civil money penalties 
in this rule are applicable to penalties assessed on or after January 
15, 2022, for conduct occurring on or after November 2, 2015.

FOR FURTHER INFORMATION CONTACT: Lynn M. Powalski, General Counsel, 
Farm Credit System Insurance Corporation, 1501 Farm Credit Drive, 
McLean, Virginia 22102, (703) 883-4380, TTY (703) 883-4390.

SUPPLEMENTARY INFORMATION:

I. Background

    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (the 2015 Act) amended the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (the Inflation Adjustment Act) \1\ to 
improve the effectiveness of civil monetary penalties and to maintain 
their deterrent effect. The Inflation Adjustment Act provides for the 
regular evaluation of CMPs and requires FCSIC, and every other Federal 
agency with authority to impose CMPs, to ensure that CMPs continue to 
maintain their deterrent values.\2\
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    \1\ Public Law 101-410, 104 Stat. 890 (Oct. 5, 1990), as amended 
by Public Law 104-134, title III, Sec.  31001(s)(1), 110 Stat. 1321-
373 (Apr. 26, 1996); Public Law 105-362, title XIII, Sec.  1301(a), 
112 Stat. 3293 (Nov. 10, 1998); Public Law 114-74, title VII, Sec.  
701(b), 129 Stat. 599 (Nov. 2, 2015), codified at 28 U.S.C. 2461 
note.
    \2\ Under the amended Inflation Adjustment 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 
considered a CMP.
---------------------------------------------------------------------------

    FCSIC must enact regulations that annually adjust its CMPs pursuant 
to the inflation adjustment formula of the amended Inflation Adjustment 
Act and rounded using a method prescribed by the Inflation Adjustment 
Act. The new amounts are applicable to penalties assessed on or after 
January 15, 2022, for conduct occurring on or after November 2, 2015. 
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.

II. 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 required premium 
shall be subject to a penalty of not more than $100 for each day that 
such violations continue, which penalty FCSIC may recover for its 
use.\3\ 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.\4\ 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 FCSIC may recover for its use.
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    \3\ 12 U.S.C. 2277a-14(c).
    \4\ 12 U.S.C. 2277a-14(d).
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    FCSIC's current Sec.  1411.1 provides that FCSIC can impose a 
maximum penalty of $217 per day for a violation under section 5.65(c) 
and (d) of the Act.

III. Required Adjustments

    The 2015 Act requires agencies to make annual adjustments for 
inflation. Annual inflation adjustments are based on the percent change 
between the October Consumer Price Index for all Urban Consumers (CPI-
U) preceding the date of the adjustment, and the prior year's October 
CPI-U. Based on the CPI-U for October 2021, not seasonally adjusted, 
the cost-of-living adjustment multiplier for 2022 is 1.06222.\5\ 
Multiplying 1.06222 times the current penalty amount of $217, after 
rounding to the nearest dollar as required by the

[[Page 2032]]

2015 Act, results in a new penalty amount of $231.
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    \5\ See Office of Mgmt. & Budget, Exec. Office of the President, 
OMB Memorandum No. M-22-07, Implementation of Penalty Inflation 
Adjustments for 2020, Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (December 15, 
2021).
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IV. Notice and Comment Not Required by Administrative Procedure Act

    In accordance with the 2015 Act, Federal agencies shall adjust 
civil monetary penalties ``notwithstanding'' Section 553 of the 
Administrative Procedures Act. This means that public procedure 
generally required for agency rulemaking--notice, an opportunity for 
comment, and a delay in effective date--is not required for agencies to 
issue regulations implementing the annual adjustment.

List of Subjects in 12 CFR Part 1411

    Banks, Banking, Civil money penalties, Penalties.

    For the reasons stated in the preamble, part 1411 of chapter XIV, 
title 12 of the Code of Federal Regulations is amended as follows:

PART 1411--RULES OF PRACTICE AND PROCEDURE

0
1. The authority citation for part 1411 continues to read as follows:

    Authority:  Secs. 5.58(10), 5.65(c) and (d) of the Farm Credit 
Act (12 U.S.C. 2277a-7(10), 2277a-14(c) and (d)); 28 U.S.C. 2461 
note.


0
2. Revise Sec.  1411.1 to read as follows:


Sec.  1411.1   Inflation adjustment of civil money penalties for 
failure to file a certified statement, pay any premium required or 
obtain approval before employment of persons convicted of criminal 
offenses.

    In accordance with the Federal Civil Penalties Inflation Adjustment 
Act of 1990, as amended, a civil money penalty imposed pursuant to 
section 5.65(c) or (d) of the Farm Credit Act of 1971, as amended, 
shall not exceed $231 per day for each day the violation continues.

    Dated: January 10, 2022.
Ashley Waldron,
Secretary, Farm Credit System Insurance Corporation.
[FR Doc. 2022-00577 Filed 1-12-22; 8:45 am]
BILLING CODE 6710-01-P