82 FR 8670 - Rules of Practice and Procedure; Adjusting Civil Money Penalties for Inflation
FARM CREDIT SYSTEM INSURANCE CORPORATION Federal Register Volume 82, Issue 18 (January 30, 2017)
Federal Register Volume 82, Issue 18 (January 30, 2017)
| Page Range | 8670-8671 | |
| FR Document | 2017-01033 |
[Federal Register Volume 82, Number 18 (Monday, January 30, 2017)] [Rules and Regulations] [Pages 8670-8671] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-01033] ======================================================================= ----------------------------------------------------------------------- FARM CREDIT SYSTEM INSURANCE CORPORATION 12 CFR Part 1411 RIN 3055-AA13 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: This rule will become effective January 30, 2017. FOR FURTHER INFORMATION CONTACT: Howard Rubin, General Counsel, Farm Credit System Insurance Corporation, 1501 Farm Credit Drive, McLean, Virginia 22102, (703) 883-4380, TTY (703) 883-4390. SUPPLEMENTARY INFORMATION: A. 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, Oct. 5, 1990, 104 Stat. 890, as amended by Public Law 104-134, title III, sec. 31001(s)(1), Apr. 26, 1996, 110 Stat. 1321-373; Public Law 105-362, title XIII, sec. 1301(a), Nov. 10, 1998, 112 Stat. 3293; Public Law 114-74, title VII, sec. 701(b), Nov. 2, 2015, 129 Stat. 599. \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 will apply to penalties assessed on or after the effective date of this rule. 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. B. 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. --------------------------------------------------------------------------- \3\ 12 U.S.C. 2277a-14(c). \4\ 12 U.S.C. 2277a-14(d) --------------------------------------------------------------------------- FCSIC's current Sec. 1411.1 provides that FCSIC can impose a maximum penalty [[Page 8671]] of $198 per day for a violation under section 5.65(c) and (d) of the Act. C. 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. In this case, the change between the October 2016 CPI-U (241.729) and the October 2015 CPI-U (237.838) = 1.01636. Multiplying 1.01636 times the current penalty amount of $198, after rounding to the nearest dollar as required by the 2015 Act, results is a new penalty amount of $201. D. 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 to read as follows: PART 1411--RULES OF PRACTICE AND PROCEDURE 0 1. The authority citation for part 1411 is revised to read as follows: Authority: 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 $201 per day for each day the violation continues. Dated: January 12, 2017. Dale L. Aultman, Secretary to the Board, Farm Credit System Insurance Corporation. [FR Doc. 2017-01033 Filed 1-27-17; 8:45 am] BILLING CODE 6710-01-P
![8670 Federal Register / Vol. 82, No. 18 / Monday, January 30, 2017 / Rules and Regulations
(PDF). To use PDF you must have Vocational education; Vocational 2015 (the 2015 Act) amended the
Adobe Acrobat Reader, which is rehabilitation; Waste treatment and Federal Civil Penalties Inflation
available free at the site. disposal; Water pollution control; Water Adjustment Act of 1990 (the Inflation
You may also access documents of the resources; Water supply; Watersheds; Adjustment Act) 1 to improve the
Department published in the Federal Women. effectiveness of civil monetary penalties
Register by using the article search and to maintain their deterrent effect.
feature at: www.Federal Register.gov. 34 CFR Part 99 The Inflation Adjustment Act provides
Specifically, through the advanced Administrative practice and for the regular evaluation of CMPs and
search feature at this site, you can limit procedure; Privacy; Reporting and requires FCSIC, and every other Federal
your search to documents published by recordkeeping requirements; Students. agency with authority to impose CMPs,
the Department. to ensure that CMPs continue to
34 CFR Part 200
maintain their deterrent values.2
List of Subjects Elementary and secondary education; FCSIC must enact regulations that
2 CFR Part 3474 Grant programs-education; Indians- annually adjust its CMPs pursuant to
education; Infants and children; the inflation adjustment formula of the
Accounting; Administrative practice
Juvenile delinquency; Migrant labor; amended Inflation Adjustment Act and
and procedure; Adult education; Aged;
Private schools; Reporting and rounded using a method prescribed by
Agriculture; American Samoa; Bilingual
recordkeeping requirements. the Inflation Adjustment Act. The new
education; Blind; Business and
industry; Civil rights; Colleges and amounts will apply to penalties
34 CFR Part 299
assessed on or after the effective date of
universities; Communications; Administrative practice and this rule. Agencies do not have
Community development; Community procedure; Elementary and secondary discretion in choosing whether to adjust
facilities; Copyright; Credit; Cultural education; Grant programs-education; a CMP, by how much to adjust a CMP,
exchange programs; Educational Private schools; Reporting and or the methods used to determine the
facilities; Educational research; recordkeeping requirements. adjustment.
Education; Education of disadvantaged;
Education of individuals with Dated: January 26, 2017. B. CMPs Imposed Pursuant to Section
disabilities; Educational study Philip H. Rosenfelt, 5.65 of the Farm Credit Act
programs; Electric power; Electric Acting Secretary of Education. First, section 5.65(c) of the Farm
power rates; Electric utilities; [FR Doc. 2017–02056 Filed 1–27–17; 8:45 am] Credit Act, as amended (Act), provides
Elementary and secondary education; BILLING CODE 4000–01–P that any insured Farm Credit System
Energy conservation; Equal educational bank that willfully fails or refuses to file
opportunity; Federally affected areas; any certified statement or pay any
Government contracts; Grant programs; FARM CREDIT SYSTEM INSURANCE required premium shall be subject to a
Grant programs-agriculture; Grant CORPORATION penalty of not more than $100 for each
programs-business and industry; Grant day that such violations continue,
programs-communications; Grant 12 CFR Part 1411 which penalty FCSIC may recover for its
programs-education; Grant programs- RIN 3055–AA13 use.3 Second, section 5.65(d) of the Act
energy; Grant programs-health; Grant provides that, except with the prior
programs-housing and community Rules of Practice and Procedure; written consent of the Farm Credit
development; Grant programs-social Adjusting Civil Money Penalties for Administration, it shall be unlawful for
programs; Grant administration; Guam; Inflation any person convicted of any criminal
Home improvement; Homeless; offense involving dishonesty or a breach
Hospitals; Housing; Human research AGENCY: Farm Credit System Insurance
of trust to serve as a director, officer, or
subjects; Indians; Indians-education; Corporation.
employee of any System institution.4
Infants and children; Insurance; ACTION: Final rule. For each willful violation of section
Intergovernmental relations; 5.65(d), the institution involved shall be
International organizations; Inventions SUMMARY: This rule implements
inflation adjustments to civil money subject to a penalty of not more than
and patents; Loan programs; Loan $100 for each day during which the
programs social programs; Loan penalties (CMPs) that the Farm Credit
System Insurance Corporation (FCSIC) violation continues, which FCSIC may
programs-agriculture; Loan programs- recover for its use.
business and industry; Loan programs- may impose under the Farm Credit Act
FCSIC’s current § 1411.1 provides that
communications; Loan programs- of 1971, as amended. These adjustments
FCSIC can impose a maximum penalty
energy; Loan programs-health; Loan are required by 2015 amendments to the
programs-housing and community Federal Civil Penalties Inflation 1 Public Law 101–410, Oct. 5, 1990, 104 Stat. 890,
development; Manpower training Adjustment Act of 1990. as amended by Public Law 104–134, title III, sec.
programs; Migrant labor; Mortgage DATES: This rule will become effective 31001(s)(1), Apr. 26, 1996, 110 Stat. 1321–373;
January 30, 2017. Public Law 105–362, title XIII, sec. 1301(a), Nov.
insurance; Nonprofit organizations; 10, 1998, 112 Stat. 3293; Public Law 114–74, title
Northern Mariana Islands; Pacific FOR FURTHER INFORMATION CONTACT: VII, sec. 701(b), Nov. 2, 2015, 129 Stat. 599.
Islands Trust Territories; Privacy; Howard Rubin, General Counsel, Farm 2 Under the amended Inflation Adjustment Act, a
Renewable Energy; Reporting and Credit System Insurance Corporation, CMP is defined as any penalty, fine, or other
sanction that: (1) Either is for a specific monetary
recordkeeping requirements; Rural 1501 Farm Credit Drive, McLean, amount as provided by Federal law or has a
mstockstill on DSK3G9T082PROD with RULES
areas; Scholarships and fellowships; Virginia 22102, (703) 883–4380, TTY maximum amount provided for by Federal law; (2)
School construction; Schools; Science (703) 883–4390. is assessed or enforced by an agency pursuant to
and technology; Securities; Small SUPPLEMENTARY INFORMATION: Federal law; and (3) is assessed or enforced
pursuant to an administrative proceeding or a civil
businesses; State and local governments; action in the Federal courts. All three requirements
Student aid; Teachers; A. Background
must be met for a fine to be considered a CMP.
Telecommunications; Telephone; Urban The Federal Civil Penalties Inflation 3 12 U.S.C. 2277a–14(c).
areas; Veterans; Virgin Islands; Adjustment Act Improvements Act of 4 12 U.S.C. 2277a–14(d)
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![Federal Register / Vol. 82, No. 18 / Monday, January 30, 2017 / Rules and Regulations 8671
of $198 per day for a violation under Dated: January 12, 2017. consultation with representatives of
section 5.65(c) and (d) of the Act. Dale L. Aultman, consumer groups, juvenile product
Secretary to the Board, Farm Credit System manufacturers, and independent child
C. Required Adjustments Insurance Corporation. product engineers and experts; and (2)
The 2015 Act requires agencies to [FR Doc. 2017–01033 Filed 1–27–17; 8:45 am] promulgate consumer product safety
make annual adjustments for inflation. BILLING CODE 6710–01–P standards for durable infant or toddler
Annual inflation adjustments are based products. Standards issued under
section 104 are to be ‘‘substantially the
on the percent change between the
CONSUMER PRODUCT SAFETY same as’’ the applicable voluntary
October Consumer Price Index for all
COMMISSION standards or more stringent than the
Urban Consumers (CPI–U) preceding the
voluntary standard if the Commission
date of the adjustment, and the prior concludes that more stringent
year’s October CPI–U. In this case, the 16 CFR Parts 1112 and 1228
requirements would further reduce the
change between the October 2016 CPI– [Docket No. CPSC–2014–0018] risk of injury associated with the
U (241.729) and the October 2015 CPI– product.
U (237.838) = 1.01636. Multiplying Safety Standard for Sling Carriers The term ‘‘durable infant or toddler
1.01636 times the current penalty AGENCY: Consumer Product Safety product’’ is defined in section 104(f)(1)
amount of $198, after rounding to the Commission. of the CPSIA as ‘‘a durable product
nearest dollar as required by the 2015 intended for use, or that may be
ACTION: Final rule.
Act, results is a new penalty amount of reasonably expected to be used, by
$201. SUMMARY: The Danny Keysar Child children under the age of 5 years.’’
Product Safety Notification Act, section Section 104(f)(1)(H) provides that the
D. Notice and Comment Not Required
104 of the Consumer Product Safety term ‘‘durable infant or toddler
by Administrative Procedure Act
Improvement Act of 2008 (CPSIA), product’’ includes ‘‘infant carriers.’’
In accordance with the 2015 Act, requires the United States Consumer In this document, the Commission is
Federal agencies shall adjust civil Product Safety Commission issuing a safety standard for sling
monetary penalties ‘‘notwithstanding’’ (Commission or CPSC) to promulgate carriers.1 Section 104(f)(2)(H) of the
Section 553 of the Administrative consumer product safety standards for CPSIA lists ‘‘infant carriers’’ as one of
Procedures Act. This means that public durable infant or toddler products. the categories of durable infant or
procedure generally required for agency These standards are to be ‘‘substantially toddler products. As indicated by a
rulemaking—notice, an opportunity for the same as’’ applicable voluntary review of ASTM’s standards and
comment, and a delay in effective standards, or more stringent than the retailers’ Web sites, the category of
voluntary standard if the Commission ‘‘infant carriers’’ includes hand-held
date—is not required for agencies to
concludes that more stringent infant carriers, soft infant carriers, frame
issue regulations implementing the
requirements would further reduce the backpack carriers, and sling carriers.
annual adjustment.
risk of injury associated with the The Commission has issued final rules
List of Subjects in 12 CFR Part 1411 product. The Commission is issuing a for three types of infant carriers: Hand-
safety standard for infant slings (sling held infant carriers (78 FR 73415
Banks, banking, Civil money carriers) in response to the direction of (December 6, 2013)), soft infant carriers
penalties, Penalties. section 104(b) of the CPSIA. In addition, (78 FR 20511 (April 5, 2013)) and frame
For the reasons stated in the the Commission is amending its carriers (80 FR 11113 (March 2, 2015)).
preamble, part 1411 of chapter XIV, title regulations regarding third party In the Commission’s product
12 of the Code of Federal Regulations is conformity assessment bodies to include registration card rule identifying
amended to read as follows: the mandatory standard for slings in the additional products that the
list of Notices of Requirements (NOR) Commission considers durable infant or
PART 1411—RULES OF PRACTICE issued by the Commission. toddler products necessitating
AND PROCEDURE DATES: This rule is effective January 30, compliance with the product
2018. The incorporation by reference of registration card requirements, the
■ 1. The authority citation for part 1411 the publication listed in this rule is Commission specifically identified
approved by the Director of the Federal ‘‘infant slings,’’ or sling carriers, as a
is revised to read as follows:
Register as of January 30, 2018. durable infant or toddler product. 76 FR
Authority: 12 U.S.C. 2277a–7(10), 2277a– 68668 (December 29, 2009).
14(c) and (d); 28 U.S.C. 2461 note. FOR FURTHER INFORMATION CONTACT:
Accordingly, 16 CFR 1130.2(a)(18) now
Daniel Dunlap, Compliance Officer, U.S.
specifically identifies ‘‘infant slings’’ as
■ 2. Revise § 1411.1 to read as follows: Consumer Product Safety Commission,
a durable infant or toddler product. At
4330 East-West Highway, Bethesda, MD
§ 1411.1 Inflation adjustment of civil the notice of proposed rulemaking
20814; telephone: 301–504–7733; email:
money penalties for failure to file a certified (NPR) stage, the staff briefing package
ddunlap@cpsc.gov.
statement, pay any premium required or for the proposed rule included a
obtain approval before employment of SUPPLEMENTARY INFORMATION: detailed technical analysis of the
persons convicted of criminal offenses. I. Background and Statutory Authority durability of sling carriers, which
In accordance with the Federal Civil concluded that sling carriers are durable
The CPSIA was enacted on August 14,
mstockstill on DSK3G9T082PROD with RULES
Penalties Inflation Adjustment Act of 2008. Section 104(b) of the CPSIA, part 1 The Commission voted 3–2 to publish this
1990, as amended, a civil money of the Danny Keysar Child Product notice in the Federal Register. Chairman Elliot F.
penalty imposed pursuant to section Safety Notification Act, requires the Kaye, Commissioner Robert S. Adler, and
5.65(c) or (d) of the Farm Credit Act of Commission to: (1) Examine and assess Commissioner Marietta S. Robinson voted to
approve publication of the final rule.
1971, as amended, shall not exceed the effectiveness of voluntary consumer Commissioners Ann Marie Buerkle and Joseph P.
$201 per day for each day the violation product safety standards for durable Mohorovic voted against publication of the final
continues. infant or toddler products, in rule.
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Document Created: 2017-01-28 01:26:00
Document Modified: 2017-01-28 01:26:00
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule will become effective January 30, 2017. | |
| Contact | Howard Rubin, General Counsel, Farm Credit System Insurance Corporation, 1501 Farm Credit Drive, McLean, Virginia 22102, (703) 883-4380, TTY (703) 883-4390. | |
| FR Citation | 82 FR 8670 | |
| RIN Number | 3055-AA13 | |
| CFR Associated | Banks; Banking; Civil Money Penalties and Penalties |
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