Annual Adjustment of Civil Monetary Penalties to Reflect Inflation-2022

CourtCommodity Futures Trading Commission
Citation87 FR 2033
Record Number2022-00595
Publication Date13 January 2022
2033
Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations
1
The FCPIAA, Public Law 101–410 (1990), as
amended, is codified at 28 U.S.C. 2461 note. The
FCPIAA states that the purpose of the FCPIAA is
to establish a mechanism that shall (1) allow for
regular adjustment for inflation of civil monetary
penalties; (2) maintain the deterrent effect of civil
monetary penalties and promote compliance with
the law; and (3) improve the collection by the
Federal Government of civil monetary penalties.
2
For the relevant CMPs within the Commission’s
jurisdiction, the Act provides only for maximum
amounts that can be assessed for each violation of
the Act or the rules, regulations and orders
promulgated thereunder; the Act does not set forth
any minimum penalties. Therefore, the remainder
of this release will refer only to CMP maximums.
3
Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Public Law 114–74, 129
Stat. 584 (2015) (2015 Act), title VII, Section 701.
4
FCPIAA Sections 4 and 5. See also, Adjustment
of Civil Monetary Penalties for Inflation, 81 FR
41435 (June 27, 2016).
5
FCPIAA Sections 4 and 5. See also, Executive
Office of the President, Office of Management and
Budget Memorandum, M–22–07, Implementation of
Penalty Inflation Adjustments for 2022, Pursuant to
the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Dec. 15, 2021) (2021
OMB Guidance) (https://www.whitehouse.gov/wp-
content/uploads/2021/12/M-22-07.pdf).
6
FCPIAA Section 3(2).
7
7 U.S.C. 9, 13a–1, 13b. Criminal authorities may
also seek fines for criminal violations of the CEA
(see 7 U.S.C. 13, 13(c), 13(d), 13(e), and 13b). The
FCPIA does not affect the amounts of these criminal
penalties.
The Class E airspace extending upward
from 700 feet above the surface is
amended by increasing the radius from
6.3 miles to 6.5 miles, and eliminating
the extension to the east. This action
also updates geographic coordinates of
the airport to coincide with the FAA
database.
FAA Order JO 7400.11, Airspace
Designations and Reporting Points, is
published yearly and effective on
September 15.
Regulatory Notices and Analyses
The FAA has determined that this
regulation only involves an established
body of technical regulations for which
frequent and routine amendments are
necessary to keep them operationally
current. It, therefore: (1) Is not a
‘‘significant regulatory action’’ under
Executive Order 12866; (2) is not a
‘‘significant rule’’ under DOT
Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3)
does not warrant preparation of a
regulatory evaluation as the anticipated
impact is minimal. Since this is a
routine matter that only affects air traffic
procedures an air navigation, it is
certified that this rule, when
promulgated, does not have a significant
economic impact on a substantial
number of small entities under the
criteria of the Regulatory Flexibility Act.
Environmental Review
The FAA has determined that this
action qualifies for categorical exclusion
under the National Environmental
Policy Act in accordance with FAA
Order 1050.1F, ‘‘Environmental
Impacts: Policies and Procedures,’’
paragraph 5–6.5a. This airspace action
is not expected to cause any potentially
significant environmental impacts and
no extraordinary circumstances exist
that warrant preparation of an
environmental assessment.
Lists of Subjects in 14 CFR Part 71
Airspace, Incorporation by reference,
Navigation (air).
Adoption of the Amendment
In consideration of the foregoing, the
Federal Aviation Administration
amends 14 CFR part 71 as follows:
PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
1. The authority citation for part 71
continues to read as follows:
Authority: 49 U.S.C. 106(f), 106(g); 40103,
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR,
1959–1963 Comp., p. 389.
§ 71.1 [Amended]
2. The incorporation by reference in
14 CFR 71.1 of FAA Order 7400.11F,
Airspace Designations and Reporting
Points, dated August 10, 2021, and
effective September 15, 2021, is
amended as follows:
Paragraph 6005 Class E Airspace Areas
Extending Upward From 700 Feet or More
Above the Surface of the Earth.
* * * * *
ASO GA E5 Covington, GA [Amended]
Covington Municipal Airport, GA
(Lat. 33°3756N, long. 83°5048W)
That airspace extending upward from 700
feet above the surface within a 6.5 mile
radius of Covington Municipal Airport.
Issued in College Park, Georgia, on January
3, 2022.
Earl Newalu,
Manager, Tactical Operations, Eastern
Service Center, Air Traffic Organization.
[FR Doc. 2022–00071 Filed 1–12–22; 8:45 am]
BILLING CODE 4910–13–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 143
RIN 3038–AF10
Annual Adjustment of Civil Monetary
Penalties to Reflect Inflation—2022
AGENCY
: Commodity Futures Trading
Commission.
ACTION
: Final rule.
SUMMARY
: The Commodity Futures
Trading Commission (Commission) is
amending Rule 143.8, its rule that
governs the maximum amount of civil
monetary penalties imposed under the
Commodity Exchange Act (CEA), to
adjust for inflation. This rule sets forth
the maximum, inflation-adjusted dollar
amount for civil monetary penalties
(CMPs) assessable for violations of the
CEA and Commission rules, regulations
and orders thereunder. The rule, as
amended, implements the Federal Civil
Penalties Inflation Adjustment Act of
1990, as amended.
DATES
: This rule is effective on January
13, 2022 and is applicable to penalties
assessed after January 15, 2022.
FOR FURTHER INFORMATION CONTACT
:
Edward J. Riccobene, Associate Chief
Counsel, Division of Enforcement, at
(202) 418–5327 or ericcobene@cftc.gov,
Commodity Futures Trading
Commission, 1155 21st Street NW,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION
:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act of 1990 (FCPIAA)
1
requires the head of each Federal agency
to periodically adjust for inflation the
minimum and maximum amount of
CMPs provided by law within the
jurisdiction of that agency.
2
A 2015
amendment to the FCPIAA
3
required
agencies to make an initial ‘‘catch-up’’
adjustment to its civil monetary
penalties effective no later than August
1, 2016.
4
For every year thereafter
effective not later than January 15th, the
FCPIAA, as amended, requires agencies
to make annual adjustments for
inflation, with guidance from the
Director of the Office of Management
and Budget.
5
II. Commodity Exchange Act Civil
Monetary Penalties
The following sections of the CEA
provide for CMPs that meet the FCPIAA
definition
6
and these CMPs are,
therefore, subject to the inflation
adjustment: Sections 6(c), 6b, and 6c of
the CEA.
7
III. Annual Inflation Adjustment for
Commodity Exchange Act Civil
Monetary Penalties
A. Methodology
The FCPIAA annual inflation
adjustment, in the context of the CFTC’s
CMPs, is determined by increasing the
maximum penalty by a ‘‘cost-of-living
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Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations
8
FCPIAA Sections 4 and 5.
9
FCPIAA Section 5(b)(1).
10
The CPI–U is published by the Department of
Labor. Interested parties may find the relevant
Consumer Price Index on the internet. To access
this information, go to the Consumer Price Index
Home Page at: http://www.bls.gov/cpi/. Click the
‘‘CPI Data/Databases’’ heading, and select ‘‘All
Urban Consumers (Current Series)’’, ‘‘Top Picks.’’
Then check the box for ‘‘U.S. city average, All
items—CUUR0000SA0’’, and click the ‘‘Retrieve
data’’ button.
11
FCPIAA Section 5(a). See also, 2021 OMB
Guidance at 3.
12
FCPIAA Section 6.
13
FCPIAA Section 4(b)(2).
14
2021 OMB Guidance at 3–4.
15
Lake Carriers’ Ass’n v. E.P.A., 652 F.3d 1, 10
(D.C. Cir. 2011).
16
5 U.S.C. 601–612.
17
5 U.S.C. 603(a).
18
44 U.S.C. 3507(d).
19
7 U.S.C. 19(a).
adjustment’’, rounded to the nearest
multiple of one dollar.
8
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.
9
In this case, the
October 2021 CPI–U (276.589)/October
2020 CPI–U (260.388) = 1.06222.
10
In
order to complete the 2022 annual
adjustment, the CFTC must multiply
each of its most recent CMP amounts by
the multiplier, 1.06222, and round to
the nearest dollar.
11
B. Civil Monetary Penalty Adjustments
Applying the FCPIAA annual
inflation adjustment methodology
results in the following amended CMPs:
Violations occurring on or after 11/02/2015
U.S. Code citation Civil monetary penalty description Penalty
amount
in 2021
Final Rule
1
CPI–U
multiplier New adjusted
penalty
amount
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of the
Commodity Exchange Act). For any person other than a reg-
istered entity
2
.Non-Manipulation or Attempted Ma-
nipulation. $170,129 1.06222 $180,714
For any person other than a reg-
istered entity
2
.Manipulation or Attempted Manipu-
lation. 1,227,202 1.06222 1,303,559
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act). For a registered entity
2
or any of its
directors, officers or employees. Non-Manipulation or Attempted Ma-
nipulation. 937,161 1.06222 995,471
For a registered entity
2
or any of its
directors, officers or employees. Manipulation or Attempted Manipu-
lation. 1,227,202 1.06222 1,303,559
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c of the
Commodity Exchange Act). Any Person ...................................... Non-Manipulation or Attempted Ma-
nipulation. 187,432 1.06222 199,094
Any Person ...................................... Manipulation or Attempted Manipu-
lation. 1,227,202 1.06222 1,303,559
1
Annual Adjustment of Civil Monetary Penalties to Reflect Inflation—2021, 86 FR 7802 (Feb. 2, 2021).
2
The term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
The FCPIAA provides that any
increase under the FCPIAA in a civil
monetary penalty shall apply only to
civil monetary penalties, including
those whose associated violation
predated such increase, which are
assessed after the date the increase takes
effect.
12
Thus, the new CMP amounts
established by this rulemaking shall
apply to penalties assessed after January
15, 2022, for violations that occurred on
or after November 2, 2015, the effective
date of the FCPIAA amendment
requiring annual adjustments, the 2015
Act.
IV. Administrative Compliance
A. Notice Requirement
The FCPIAA specifically exempted
from the Administrative Procedure Act
(APA) the rulemakings required to
implement annual inflation
adjustments.
13
This means that the
public procedure the APA generally
requires—notice, an opportunity for
comment, and a delay in effective
date—is not required for agencies to
issue regulations implementing the
annual adjustment.
14
The Commission
further notes that the notice and
comment procedures of the APA do not
apply to this rulemaking because the
Commission is acting herein pursuant to
statutory language that mandates that
the Commission act in a
nondiscretionary matter.
15
B. Regulatory Flexibility Act
The Regulatory Flexibility Act
16
requires agencies with rulemaking
authority to consider the impact of
certain of their rules on small
businesses. A regulatory flexibility
analysis is only required for rule(s) for
which the agency publishes a general
notice of proposed rulemaking pursuant
to section 553(b) or any other law.
17
Because, as discussed above, the
Commission is not obligated by section
553(b) or any other law to publish a
general notice of proposed rulemaking
with respect to the revisions being made
to Rule 143.8, the Commission
additionally is not obligated to conduct
a regulatory flexibility analysis.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA),
18
which imposes certain
requirements on Federal agencies,
including the Commission, in
connection with their conducting or
sponsoring any collection of
information as defined by the PRA, does
not apply to this rule. This rule
amendment does not contain
information collection requirements that
require the approval of the Office of
Management and Budget.
D. Consideration of Costs and Benefits
Section 15(a) of the CEA
19
requires
the Commission to consider the costs
and benefits of its action before issuing
a new regulation. Section 15(a) of the
CEA further specifies that costs and
benefits shall be evaluated in light of
five broad areas of market and public
concern: (1) Protection of market
participants and the public; (2)
efficiency, competitiveness, and
financial integrity of futures markets; (3)
price discovery; (4) sound risk
management practices; and (5) other
public interest considerations.
The Commission believes that
benefits of this rulemaking greatly
outweigh the costs, if any. As the
Commission understands, the statutory
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Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations
provisions by which it is making cost-
of-living adjustments to the CMPs in
Rule 143.8 were enacted to ensure that
CMPs do not lose their deterrence value
because of inflation. An analysis of the
costs and benefits of these adjustments
were made before enactment of the
statutory provisions under which the
Commission is operating, and limit the
discretion of the Commission to the
extent that there are no regulatory
choices the Commission could make
that would supersede the pre-enactment
analysis with respect to the five factors
enumerated in Section 15(a) of the CEA,
or any other factors.
List of Subjects in 17 CFR Part 143
Claims, Penalties.
For the reasons set forth in the
preamble, the Commodity Futures
Trading Commission amends part 143 of
chapter I of title 17 of the Code of
Federal Regulations as follows:
PART 143—COLLECTION OF CLAIMS
OWED THE UNITED STATES ARISING
FROM ACTIVITIES UNDER THE
COMMISSION’S JURISDICTION
1. The authority citation for part 143
continues to read as follows:
Authority: 7 U.S.C. 9, 9a, 12a(5), 13a, 13a–
1(d), 13(a), 13b; 31 U.S.C. 3701–3720E; 28
U.S.C. 2461 note.
2. Amend § 143.8 by revising
paragraph (b) to read as follows:
§ 143.8 Inflation-adjusted civil monetary
penalties.
* * * * *
(b) 2022 Inflation adjustment. The
maximum amount of each civil
monetary penalty in the following
charts applies to penalties assessed after
January 15, 2022:
(1) For Non-Manipulation or
Attempted Manipulation Violations:
T
ABLE
1
TO
P
ARAGRAPH
(b)(1)
U.S. Code citation Civil monetary penalty description
Date of violation and corresponding penalty
10/23/2004
through
10/22/2008
10/23/2008
through
10/22/2012
10/23/2012
through
11/01/2015
11/02/2015
to present
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of the Com-
modity Exchange Act). For any person other than a reg-
istered entity
1
.$130,000 $130,000 $140,000 $180,714
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act). For a registered entity
1
or any of its
directors, officers or employees. 625,000 675,000 700,000 995,471
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c of the
Commodity Exchange Act). Any Person ....................................... 130,000 140,000 140,000 199,094
1
The term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
(2) For Manipulation or Attempted
Manipulation Violations:
T
ABLE
2
TO
P
ARAGRAPH
(b)(2)
U.S. Code citation Civil monetary penalty description
Date of violation and corresponding penalty
10/23/2004
through
05/21/2008
05/22/2008
through
08/14/2011
08/15/2011
through
11/01/2015
11/02/2015
to Present
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of the Com-
modity Exchange Act). For any person other than a reg-
istered entity
1
.$130,000 $1,000,000 $1,025,000 $1,303,559
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act). For a registered entity
1
or any of its
directors, officers or employees. 625,000 1,000,000 1,025,000 1,303,559
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c of the
Commodity Exchange Act). Any Person ....................................... 130,000 1,000,000 1,025,000 1,303,559
1
The term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
Issued in Washington, DC, on January 10,
2022, by the Commission.
Robert Sidman
Deputy Secretary of the Commission.
Note: The following appendix will not
appear in the Code of Federal Regulations.
Appendix to Adjustment of Civil
Monetary Penalties for Inflation—
2022—Commission Voting Summary
On this matter, Chairman Behnam and
Commissioner Stump voted in the
affirmative. No Commissioner voted in the
negative.
[FR Doc. 2022–00595 Filed 1–12–22; 8:45 am]
BILLING CODE 6351–01–P
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