8854 Federal Register / Vol. 86, No. 26 / Wednesday, February 10, 2021 / Rules and Regulations 

1Public 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. 

2Under 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). 

5See Office of Mgmt. & Budget, Exec. Office of 

the President, OMB Memorandum No. M–21–10, 

Implementation of Penalty Inflation Adjustments 

for 2020, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 2015 

(December 23, 2020). 

FARM CREDIT SYSTEM INSURANCE 

CORPORATION 

12 CFR Part 1411 

RIN 3055–AA17 

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 February 10, 2021. 

Applicability date: The adjusted 

amounts of civil money penalties in this 

rule are applicable to penalties assessed 

on or after January 15, 2021, 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, 2021, 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 $214 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 2020, not seasonally 

adjusted, the cost-of-living adjustment 

multiplier for 2021 is 1.01182.5

Multiplying 1.01182 times the current 

penalty amount of $214, after rounding 

to the nearest dollar as required by the 

2015 Act, results in a new penalty 

amount of $217. 

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 

$217 per day for each day the violation 

continues. 

Dated: January 19, 2021. 

Dale Aultman, 

Secretary, Farm Credit System Insurance 

Corporation. 

[FR Doc. 2021–01578 Filed 2–9–21; 8:45 am] 

BILLING CODE 6710–01–P