This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

7235 

Vol. 86, No. 16 

Wednesday, January 27, 2021 

1Note: While the 1990 Act, as amended by 1996 

and 2015 Acts, uses the term ‘‘civil monetary 

penalties’’ for these penalties or other sanctions, the 

Farm Credit Act and the FCA Regulations use the 

term ‘‘civil money penalties.’’ Both terms have the 

same meaning. Accordingly, this rule uses the term 

civil money penalty, and both terms may be used 

interchangeably. 

2See 28 U.S.C. 2461 note. 

3Public Law 92–181, as amended. 

4 42 U.S.C. 4012a and Public Law 103–325, title 

V, 108 Stat. 2160, 2255–87 (September 23, 1994). 

5The inflation-adjusted CMP in effect on January 

15, 2020, for a violation of a final order is $2,404 

per day, as set forth in § 622.61(a)(1) of FCA 

regulations. We discovered a transposition error, 

and note that the correct number for 2020 is $2,367. 

6The inflation-adjusted CMP in effect on January 

15, 2020, for a violation of the Farm Credit Act or 

a regulation issued under the Farm Credit Act is 

$1,071 per day, as set forth in § 622.61(a)(2) of FCA 

regulations. 

7Prior adjustments were made under the 1990 

Act and continue to be made each year. 

8Public Law 112–141, 126 Stat. 405 (July 6, 

2012). 

9The inflation-adjusted CMP in effect on January 

15, 2020, for a flood insurance violation is $2,226, 

as set forth in § 622.61(b)of FCA regulations. 

FARM CREDIT ADMINISTRATION 

12 CFR Part 622 

RIN 3052–AD45 

Rules of Practice and Procedure; 

Adjusting Civil Money Penalties for 

Inflation 

AGENCY: Farm Credit Administration. 

ACTION: Final rule. 

SUMMARY: This regulation implements 

inflation adjustments to civil money 

penalties (CMPs) that the Farm Credit 

Administration (FCA) may impose or 

enforce pursuant to the Farm Credit Act 

of 1971, as amended (Farm Credit Act), 

and pursuant to the Flood Disaster 

Protection Act of 1973, as amended by 

the National Flood Insurance Reform 

Act of 1994, and further amended by the 

Biggert-Waters Flood Insurance Reform 

Act of 2012 (Biggert-Waters Act) 

(collectively FDPA, as amended). 

DATES: This regulation is effective on 

January 27, 2021, and is applicable 

beginning January 15, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Brian Camp, Accountant, Office of 

Regulatory Policy, Farm Credit 

Administration, (703) 254–3004, TTY 

(703) 883–4056, or Autumn R. Agans, 

Senior Counsel, Office of General 

Counsel, Farm Credit Administration, 

(703) 883–4082, TTY (703) 883–4056. 

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 

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 

Improvements Act of 2015 (2015 Act) 

(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. 

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 FCA imposes and enforces CMPs 

through the Farm Credit Act 3 and the 

FDPA, as amended.4 FCA’s regulations 

governing CMPs are found in 12 CFR 

parts 622 and 623. Part 622 establishes 

rules of practice and procedure 

applicable to formal and informal 

hearings held before the FCA, and to 

formal investigations conducted under 

the Farm Credit Act. Part 623 prescribes 

rules regarding persons who may 

practice before the FCA and the 

circumstances under which such 

persons may be suspended or debarred 

from practice before the FCA. 

B. CMPs Issued Under the Farm Credit 

Act 

The Farm Credit Act provides that 

any Farm Credit System (System) 

institution or any officer, director, 

employee, agent, or other person 

participating in the conduct of the 

affairs of a System institution who 

violates the terms of a cease-and-desist 

order that has become final pursuant to 

section 5.25 or 5.26 of the Farm Credit 

Act must pay a maximum daily amount 

of $1,000,5 for each day such violation 

continues. This CMP maximum was set 

by the Farm Credit Amendments Act of 

1985, which amended the Farm Credit 

Act. Orders issued by the FCA under 

section 5.25 or 5.26 of the Farm Credit 

Act include temporary and permanent 

cease-and-desist orders. In addition, 

section 5.32(h) of the Farm Credit Act 

provides that any directive issued under 

sections 4.3(b)(2), 4.3A(e), or 4.14A(i) of 

the Farm Credit Act ‘‘shall be treated’’ 

as a final order issued under section 

5.25 of the Farm Credit Act for purposes 

of assessing a CMP. 

Section 5.32(a) of the Farm Credit Act 

also states that ‘‘[a]ny such institution or 

person who violates any provision of 

the [Farm Credit] Act or any regulation 

issued under this Act shall forfeit and 

pay a civil penalty of not more than 

$500 6 per day for each day during 

which such violation continues.’’ This 

CMP maximum was set by the 

Agricultural Credit Act of 1987, which 

was enacted in 1988, and amends the 

Farm Credit Act. Current inflationadjusted CMP maximums are set forth 

in existing § 622.61 of FCA regulations.7

The FCA also enforces the FDPA, as 

amended, which requires FCA to assess 

CMPs for a pattern or practice of 

committing certain specific actions in 

violation of the National Flood 

Insurance Program. The existing 

maximum CMP for a violation under the 

Flood Disaster Protection Act of 1973 is 

$2,000.8 9

C. Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 

1. In General 

The 2015 Act required all Federal 

agencies to adjust the CMPs yearly, 

starting January 15, 2017. 

Under Section 4(b) of the 1990 Act, as 

amended, annual adjustments are to be 

made yearly no later than January 15 of 


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7236 Federal Register / Vol. 86, No. 16 / Wednesday, January 27, 2021 / Rules and Regulations 

10Public Law 114–74, sec. 701(b)(1). 

11The CPI is published by the Department of 

Labor, Bureau of Statistics, and is available at its 

website: https://www.bls.gov/cpi/. 

12Pursuant to section 5(a)(3) of the 2015 Act, any 

increase determined under the subsection shall be 

rounded to the nearest $1. 

13Pursuant to section 4(d) of the 1990 Act, as 

amended. 

14OMB Circular M–21–10, Implementation of 

Penalty Inflation Adjustments for 2021, Pursuant to 

the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015. 

15 28 U.S.C. 2461 note, section 7(a). 

16OMB Circular M–21–10, Implementation of 

Penalty Inflation Adjustments for 2021, Pursuant to 

the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015. 

17 12 CFR 622.61(a)(1). As noted above, we 

discovered a transposition error, so the correct 

maximum daily amount for 2020 is $2,367. 

Accordingly, we use the corrected amount to 

compute the maximum amount for CMP violations 

that occur on or after January 15, 2021. 

18 12 CFR 622.61(a)(2). 

each year.10 Section 6 of the 1990 Act, 

as amended, states that any increase to 

a civil monetary penalty under this 1990 

Act applies only to civil monetary 

penalties, including those whose 

associated violation predated such 

increase, which are assessed after the 

date the increase takes effect. 

Section 5(b) of the 1990 Act, as 

amended, defines the term ‘‘cost-ofliving 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 

October 1 year before the month of 

October referred to in (1) of the calendar 

year in which the amount of such civil 

monetary penalty was last set or 

adjusted pursuant to law.11

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 costof-living adjustment to that CMP in that 

calendar year.13

III. Yearly Adjustments 

A. Mathematical Calculations of 2021 

Adjustments 

The adjustment requirement affects 

two provisions of section 5.32(a) of the 

Farm Credit Act. For the 2021 yearly 

adjustments to the CMPs set forth by the 

Farm Credit Act, the calculation 

required by the 2020 White House 

Office of Management and Budget 

(OMB) guidance 14 is based on the 

percentage by which the CPI for October 

2020 exceeds the CPIs for October 2019. 

The OMB set forth guidance, as required 

by the 2015 Act,15 with a multiplier for 

calculating the new CMP values.16 The 

2020 OMB multiplier for the 2021 CMPs 

is 1.01182. 

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 FCA 

enforced CMPs, set at 1.01182. The 

maximum CMPs for violations were 

created in 2012 by the Biggert-Waters 

Act, which amended the Flood Disaster 

Protection Act of 1973. 

1. New Penalty Amount in § 622.61(a)(1) 

The inflation-adjusted CMP currently 

in effect for violations of a final order 

occurring on or after January 15, 2020, 

is a maximum daily amount of $2,367.17

Multiplying the $2,367 CMP by the 2020 

OMB multiplier, 1.01182, yields a total 

of $2,394.98. When that number is 

rounded as required by section 5(a) of 

the 1990 Act, as amended, the inflationadjusted maximum increases to $2,395. 

Thus, the new CMP maximum is $2,395, 

for violations that occur on or after 

January 15, 2021. 

2. New Penalty Amount in § 622.61(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 January 15, 2020, is a maximum 

daily amount of $1,071.18 Multiplying 

the $1,071 CMP maximum by the 2020 

OMB multiplier, 1.01182, yields a total 

of $1,083.66. When that number is 

rounded as required by section 5(a) of 

the 1990 Act, as amended the inflationadjusted maximum increases to $1,084. 

Thus, the new CMP maximum is $1,084, 

for violations that occur on or after 

January 15, 2021. 

3. New Penalty Amounts for Flood 

Insurance Violations Under § 622.61(b) 

The existing maximum CMP for a 

pattern or practice of flood insurance 

violations pursuant to 42 U.S.C. 

4012a(f)(5) occurring on or after January 

15, 2020, is $2,226. Multiplying $2,226 

by the 2020 OMB multiplier, 1.01182, 

yields a total of $2,252.31. When that 

number is rounded as required by 

section 5(a) of the 1990 Act, as 

amended, the new maximum 

assessment of the CMP for violating 42 

U.S.C. 4012a(f)(5) is $2,252. Thus, the 

new CMP maximum is $2,252, for 

violations that occur on or after January 

15, 2021. 

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 

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. 

V. Regulatory Flexibility Act 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq.), the FCA hereby certifies that 

this final rule will not have a significant 

economic impact on a substantial 

number of small entities. Each of the 

banks in the System, considered 

together with its affiliated associations, 

has assets and annual income in excess 

of the amounts that would qualify them 

as small entities. Therefore, System 

institutions are not ‘‘small entities’’ as 

defined in the Regulatory Flexibility 

Act. 

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 § 622.61 to read as follows: 

§ 622.61 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 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 


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Federal Register / Vol. 86, No. 16 / Wednesday, January 27, 2021 / Rules and Regulations 7237 

1Comments on the previously issued proposed 

rule, Aluminum Import Monitoring and Analysis 

System, 85 FR 23748 (April 29, 2020) (Proposed 

Rule), can be found by searching for the Proposed 

Rule on the Federal eRulemaking portal at http:// 

www.regulations.gov. 

2Aluminum Import Monitoring and Analysis 

System, 85 FR 83804 (Dec. 23, 2020) (Final Rule). 

for violation of a final order issued 

under section 5.25 or 5.26 of the Act: 

The maximum daily amount is $2,395 

for violations that occur on or after 

January 15, 2021. 

(2) Amount of civil money penalty for 

violation of the Act or regulations: The 

maximum daily amount is $1,084 for 

each violation that occurs on or after 

January 15, 2021. 

(b) The maximum civil money penalty 

amount assessed under 42 U.S.C. 

4012a(f) is $2,252 for each violation that 

occurs on or after January 15, 2021, with 

no cap on the total amount of penalties 

that can be assessed against any single 

institution during any calendar year. 

Dated: January 22, 2021. 

Dale Aultman, 

Secretary, Farm Credit Administration Board. 

[FR Doc. 2021–01796 Filed 1–26–21; 8:45 am] 

BILLING CODE 6705–01–P 

DEPARTMENT OF COMMERCE 

International Trade Administration 

19 CFR Part 361 

[Docket No. 210122–0011] 

RIN 0625–AB18 

Aluminum Import Monitoring and 

Analysis System: Delay of Effective 

Date 

AGENCY: Enforcement and Compliance, 

International Trade Administration, 

Department of Commerce. 

ACTION: Final rule; delay of effective 

date; request for comments. 

SUMMARY: The U.S. Department of 

Commerce (Commerce) is delaying the 

effective date of the final rule, entitled 

‘‘Aluminum Import Monitoring and 

Analysis System,’’ from January 25, 

2021 until March 29, 2021. Commerce is 

also soliciting comments on the final 

rule. 

DATES: The effective date of the rule 

amending 19 CFR part 361published at 

85 FR 83804 (Dec. 23, 2020), is delayed 

from January 25, 2021, to March 29, 

2021. 

To be assured of consideration, 

written comments on the final rule must 

be received no later than February 26, 

2021. 

ADDRESSES: Submit comments only 

through the Federal eRulemaking Portal 

at http://www.Regulations.gov, Docket 

No. ITA–2021–0001.1 Due to the 

COVID–19 situation, Commerce is not 

able to accept comments submitted by 

mail or hand-delivery at this time. All 

comments submitted during the 

comment period permitted by this 

document will be a matter of public 

record and will generally be available 

on the Federal eRulemaking Portal at 

http://www.Regulations.gov. Commerce 

will not accept response comments 

accompanied by a request that part or 

all of the material be treated 

confidentially because of its business 

proprietary nature or for any other 

reason. Therefore, do not submit 

confidential business information or 

otherwise sensitive or protected 

information. 

Any questions concerning the process 

for submitting comments should be 

submitted to Enforcement & Compliance 

Communications office at (202) 482– 

0063 or ECCommunications@trade.gov. 

The AIM system website is https://

www.trade.gov/aluminum. 

FOR FURTHER INFORMATION CONTACT: Julie 

Al-Saadawi at (202) 482–1930 or Jessica 

Link at (202) 482–1411. 

SUPPLEMENTARY INFORMATION: On 

December 23, 2020, Commerce 

published the final rule and 

accompanying regulations establishing 

the Aluminum Import Monitoring and 

Analysis (AIM) system.2 The original 

effective date for the Final Rule was 

January 25, 2021. Commerce is now 

delaying the effective date until March 

29, 2021. 

This delay in effective date is 

necessary to allow the incoming 

Administration time to review the Final 

Rule and consider any additional 

comments before implementation. 

Unless otherwise announced, the 

majority of the final rule will be 

effective on March 29, 2021. The 

remaining portions of the final rule 

concerning an option to state 

‘‘unknown’’ for certain fields on the 

aluminum license form will be effective 

on December 24, 2021, as originally 

stated in the final rule. For further 

background and information, see the 

Final Rule. Parties are invited to 

comment on all aspects of the Final Rule 

and the AIM system. 

The AIM system website (https://

www.trade.gov/aluminum) continues to 

be operational. However, licenses will 

not be required for covered aluminum 

imports until on or after March 29, 

2021. Further guidance on licenses 

already issued and the issuance of new 

licenses during the intervening period 

prior to March 29, 2021 will be 

provided on the AIM system website. 

Dated: January 22, 2021. 

Christian Marsh, 

Acting Assistant Secretary for Enforcement 

and Compliance. 

[FR Doc. 2021–01804 Filed 1–22–21; 4:15 pm] 

BILLING CODE 3510–DS–P 

DEPARTMENT OF LABOR 

Office of the Secretary 

29 CFR Part 89 

RIN 1290–AA41 

Rescission of Department of Labor 

Rule on Guidance 

AGENCY: Office of the Secretary, U.S. 

Department of Labor. 

ACTION: Final rule; rescission of 

regulations. 

SUMMARY: On August 28, 2020, the 

Department of Labor published a final 

rule on guidance implementing an 

Executive order entitled ‘‘Promoting the 

Rule of Law Through Improved Agency 

Guidance Documents,’’ and providing 

policy and requirements for issuing, 

modifying, withdrawing, and using 

guidance; making guidance available to 

the public; a notice and comment 

process for significant guidance; and 

taking and responding to petitions about 

guidance. In accordance with the 

‘‘Executive Order on Revocation of 

Certain Executive Orders Concerning 

Federal Regulation,’’ issued by 

President Biden on January 20, 2021, 

this final rule rescinds the Department’s 

rule on guidance. 

DATES: This final rule is effective 

January 27, 2021. 

FOR FURTHER INFORMATION CONTACT: Erin 

FitzGerald, Senior Policy Advisor, U.S. 

Department of Labor, Room S–2312, 200 

Constitution Avenue NW, Washington, 

DC 20210; telephone: (202) 693–5076 

(this is not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

I. Discussion 

On August 28, 2020, the Department 

of Labor published an internal final rule 

on guidance implementing E.O. 13891, 

‘‘Promoting the Rule of Law Through 

Improved Agency Guidance 

Documents,’’ signed by President 

Trump on October 9, 2019. As required 

by the E.O., the rule contained policy 

and requirements for issuing, 

modifying, withdrawing, and using 

guidance; making guidance available to 

the public; a notice and comment 


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