Farm Credit Administration Issues Final Rule for Rules of Practice, Procedure, Adjusting Civil Money Penalties for Inflation
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This regulation implements inflation adjustments to civil money penalties (CMPs) that the
DATES:
This regulation is effective on
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Objective
The objective of this regulation is to adjust the maximum CMPs for inflation through a final rulemaking to retain the deterrent effect of such penalties.
II. Background
A. Introduction
Section 3(2) of the 1990 Act, as amended, defines a civil monetary penalty[1] 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
B. CMPs Issued Under the Farm Credit Act
The Farm Credit Act provides that any
Section 5.32(a) of the Farm Credit Act also states that "[a]ny such institution or person who violates any provision of the [
The
C. Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015
1. In General
The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 (1996 Act) and the Federal Civil Penalties Inflation Adjustment Act of 2015 (2015 Act)[9] (collectively, 1990 Act, as amended), requires all Federal agencies with the authority to enforce CMPs to evaluate and adjust, if necessary, those CMPs each year to ensure that they continue to maintain their deterrent value and promote compliance with the law. Furthermore, the 2015 Act requires all Federal agencies to adjust the CMPs yearly, starting
Under Section 4(b) of the 1990 Act, as amended, annual adjustments are to be made yearly no later than
Section 5(b) of the 1990 Act, as amended, defines the term "cost-of-living adjustment" as the percentage (if any) for each civil monetary penalty by which (1) the Consumer Price Index (CPI) for the month of October of the calendar year preceding the adjustment, exceeds (2) the CPI for the month of
As of
The increase for each CMP adjusted for inflation must be rounded using a method prescribed by section 5(a) of the 1990 Act, as amended, by the 2015 Act.[12]
2. Other Adjustments
If a civil monetary penalty is subject to a cost-of-living adjustment under the 1990 Act, as amended, but is adjusted to an amount greater than the amount of the adjustment required under the Act within the 12 months preceding a required cost-of-living adjustment, the agency is not required to make the cost-of-living adjustment to that CMP in that calendar year.[13]
III. Yearly Adjustments
A. Mathematical Calculations of 2017 Adjustments
The adjustment requirement affects two provisions of section 5.32(a) of the Farm Credit Act. For the 2017 yearly adjustments to the CMPs set forth by the Farm Credit Act, the calculation required by the 2016
The adjustment also affects the CMPs set by the Flood Disaster Protection Act of 1973, as amended. The adjustment multiplier is the same for all
1. New Penalty Amount in section622.61(a)(1)
The inflation-adjusted CMP currently in effect for violations of a final order occurring on or after
2. New Penalty Amount in section622.61(a)(2)
The inflation-adjusted CMP currently in effect for violations of the Farm Credit Act or regulations issued under the Farm Credit Act occurring on or after
3. New Penalty Amounts for Flood Insurance Violations Under section622.61(b)
The existing maximum CMP for a pattern or practice of flood insurance violations pursuant to 42 U.S.C. 4012a(f)(5) is
IV. Notice and Comment Not Required by Administrative Procedure Act
The 1990 Act, as amended, 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
V. Regulatory Flexibility Act
Pursuant to section 605(b) of the Regulatory Flexibility Act (5 U.S.C.
List of Subjects in 12 CFR Part 622
* 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 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).
2. Revise section622.61 to read as follows:
section622.61 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
(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
(2) Amount of civil money penalty for violation of the Act or regulations: the maximum daily amount is
(b) The maximum civil money penalty amount assessed under 42 U.S.C. 4012a(f) is:
Dated:
Secretary, Farm Credit Administration Board.
Footnotes omitted. It can be viewed at https://www.federalregister.gov/documents/2017/01/31/2017-01065/rules-of-practice-and-procedure-adjusting-civil-money-penalties-for-inflation [FR Doc. 2017-01065 Filed 1-30-17;
BILLING CODE 6705-01-P
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