Rules of Practice and Procedure; Adjusting Civil Money Penalties for Inflation
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Final rule.
CFR Part: "12 CFR Part 622"
RIN Number: "RIN 3052-AC87"
Citation: "78 FR 24336"
"Rules and Regulations"
SUMMARY: 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 objectives of this regulation are to:
* Adjust for inflation the maximum amount of CMPs that the FCA has jurisdiction to administer pursuant to the Farm Credit Act in accordance with the requirements of the Inflation Adjustment Act, /1/ and
FOOTNOTE 1 28 U.S.C. 2461 note. END FOOTNOTE
* Implement the provisions for the maximum amount of CMPs provided by the Biggert-Waters Act. /2/
FOOTNOTE 2 Public Law 112-141, 126
II. Background
A. Federal Civil Penalties Inflation Adjustment Act of 1990, as Amended
The Inflation Adjustment Act requires every Federal agency with authority to issue CMPs /3/ to enact regulations that adjust its CMPs pursuant to the inflation adjustment formula in section 5(b) of the Inflation Adjustment Act. Each Federal agency was required to issue these regulations by
FOOTNOTE 3 See 28 U.S.C. 2461 note. Section 3(2) of the amended Inflation Adjustment 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; and (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. END FOOTNOTE
FOOTNOTE 4 The CPI is published by the
B. CMPs Issued Under the Farm Credit Act
The adjustment requirement affects two provisions of section 5.32(a) of the Farm Credit Act. First, it provides that any
FOOTNOTE 5 The current inflation-adjusted CMP for a violation of a final order is
FOOTNOTE 6 The current inflation-adjusted CMP for a violation of the Farm Credit Act or a regulation issued under the Farm Credit Act is
1. Mathematical Calculation
In general, the adjustment calculation required by the Inflation Adjustment Act is based on the percentage by which the CPI for
FOOTNOTE 7 Public Law 101-410, Section 5(b). END FOOTNOTE
FOOTNOTE 8 The CMP inflation adjustment analysis was conducted in subsequent intervals following 1996; however, the penalty amount did not change in those calculations. The last year the amount was actually amended was 1996, as such, that is the year for which we refer to the consumer price index. END FOOTNOTE
2. New Penalty Amount in
The existing maximum CMPs in
FOOTNOTE 9 As a result of the mathematical calculation for the year 2009 and the required rounding application, the penalty amount remained the same and did not reset. Therefore, in accordance with the Inflation Adjustment Act, the calculation for the 2012 adjustment is determined by using the
FOOTNOTE 10 Per section 5(a)(3) of the Inflation Adjustment Act, any increase determined under the subsection shall be rounded to the nearest multiple of
3. Penalty Amount Remains the Same in
The existing maximum CMPs in
FOOTNOTE 11 Per section 5(a)(2), any increase determined under this subsection shall be rounded to the nearest multiple of
C. CMPs Issued Under the Reform Act
The Flood Disaster Protection Act of 1973, /12/ as amended by the National Flood Insurance Reform Act of 1994, /13/ requires that FCA assess CMPs for a pattern or practice of committing certain specific actions in violation of the National Flood Insurance Program. Pursuant to section 100208 of the Biggert Waters Act, which further amends the Flood Disaster Protection Act of 1973, FCA is amending the maximum CMPs prescribed in 42 U.S.C. 4012a(f)(5). /14/ In that statute,
FOOTNOTE 12 42 U.S.C. 4012a. END FOOTNOTE
FOOTNOTE 13 Public Law 103-325, title V, 108
FOOTNOTE 14 Section 100208 Enforcement: Section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(5) is amended: (1) In the first sentence, by striking "
1. Mathematical Calculation
As a result of the provisions of the Biggert-Waters Act, the CMPs for violating the National Flood Insurance Program are not subject to an inflation adjustment at this time.
2. New Penalty Amounts in
As required by the Biggert-Waters Act, the maximum assessment of the CMP for violating 42 U.S.C. 4012a(f)(5) is
III. Notice and Comment Not Required by Administrative Procedure Act
The Inflation Adjustment Act gives Federal agencies no discretion in the adjustment of CMPs for the rate of inflation. In addition, the Biggert-Waters Act gives Federal agencies no discretion in the amount of CMPs for violations of the National Flood Insurance Program. 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.
IV. 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
(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
(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.
[FR Doc. 2013-09807 Filed 4-24-13;
BILLING CODE 6705-01-P
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