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

CourtFarm Credit System Insurance Corporation
Citation87 FR 2031
Record Number2022-00577
Publication Date13 January 2022
2031
Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations
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.
3
12 U.S.C. 2277a–14(c).
4
12 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).
§ 209.4 Amounts and payments for
subscriptions and cancellations; timing and
rate of dividends.
(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 six-
tenths 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—
* * * * *
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
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.
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
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
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2032
Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations
2015 Act, results in a new penalty
amount of $231.
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]
BILLING CODE 6710–01–P
DEPARTMENT OF TRANSPORTATION
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
AGENCY
: Federal Aviation
Administration (FAA), DOT.
ACTION
: Final rule.
SUMMARY
: 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
:
Authority for This Rulemaking
The FAA’s authority to issue rules
regarding aviation safety is found in
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.
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