2116 Federal Register / Vol. 89, No. 9 / Friday, January 12, 2024 / Rules and Regulations 

1While the 1990 Act, as amended by the 1996 

and 2015 Acts, uses the term ‘‘civil monetary 

penalties’’ for these penalties or other sanctions, the 

Farm Credit Act and 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, 2023, for a violation of a final order is $2,741 

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

regulations. 

TABLE 1 TO PARAGRAPH (b)—Continued 

Statute Adjusted civil 

money penalty 

First Tier ............................................................................................................................................................................... 4,480 

Second Tier .......................................................................................................................................................................... 44,783 

Third Tier .............................................................................................................................................................................. 2,239,210 

12 U.S.C. 3909(d) ........................................................................................................................................................................ 3,047 

15 U.S.C. 78u–2(b)(1): 

For a natural person ............................................................................................................................................................. 11,524 

For any other person ............................................................................................................................................................ 115,231 

15 U.S.C. 78u–2(b)(2) 

For a natural person ............................................................................................................................................................. 115,231 

For any other person ............................................................................................................................................................ 576,158 

15 U.S.C. 78u–2(b)(3) 

For a natural person ............................................................................................................................................................. 230,464 

For any other person ............................................................................................................................................................ 1,152,314 

15 U.S.C. 1639e(k)(1) ................................................................................................................................................................. 14,069 

15 U.S.C. 1639e(k)(2) ................................................................................................................................................................. 28,135 

42 U.S.C. 4012a(f)(5) .................................................................................................................................................................. 2,661 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Secretary of the Board under delegated 

authority. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2024–00650 Filed 1–11–24; 8:45 am] 

BILLING CODE 6210–01–P 

FARM CREDIT ADMINISTRATION 

12 CFR Part 622 

RIN 3052–AD62 

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 15, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Brian Camp, Accountant, Office of 

Regulatory Policy, Farm Credit 

Administration, (703) 883–4320, TTY 

(703) 883–4056, or, Heather LoPresti, 

Senior Counsel, Office of General 

Counsel, Farm Credit Administration, 

(703) 883–4318, 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 

Section 5.32(a) of 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 an 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-anddesist 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 


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Federal Register / Vol. 89, No. 9 / Friday, January 12, 2024 / Rules and Regulations 2117 

6The inflation-adjusted CMP in effect on January 

15, 2023, for a violation of the Farm Credit Act or 

a regulation issued under the Farm Credit Act is 

$1,240 per day for each violation, 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); 42 U.S.C. 4012a(f)(5). 

9The inflation-adjusted CMP in effect on January 

15, 2023, for a flood insurance violation is $2,577, 

as set forth in § 622.61(b) of FCA 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–24–07, Implementation of 

Penalty Inflation Adjustments for 2024, 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–24–07, Implementation of 

Penalty Inflation Adjustments for 2024, Pursuant to 

the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015. 

17 12 CFR 622.61(a)(1). 18 12 CFR 622.61(a)(2). 

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 section 423 

of the Agricultural Credit Act of 1987, 

which was enacted in 1988 and 

amended the Farm Credit Act. Current 

inflation-adjusted 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 FDPA states 

that the maximum CMP for a violation 

of that Act 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 no later than January 15.10 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 instances in which an 

associated violation predated the annual 

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 one 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 2024 

Adjustments 

The adjustment requirement affects 

two provisions of section 5.32(a) of the 

Farm Credit Act. For the 2024 yearly 

adjustments to the CMPs set forth by the 

Farm Credit Act, the calculation 

required by the 2023 White House 

Office of Management and Budget 

(OMB) guidance 14 is based on the 

percentage by which the CPI for October 

2023 exceeds the CPI for October 2022. 

The OMB set forth guidance, as required 

by the 2015 Act,15 with a multiplier for 

calculating the new CMP values.16 The 

2023 OMB multiplier for the 2024 CMPs 

is 1.03241. 

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 1.03241. 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, 2023, 

is a maximum daily amount of $2,741.17

Multiplying the $2,741 CMP by the 2023 

OMB multiplier, 1.03241, yields a total 

of $2,829.84. When that number is 

rounded as required by section 5(a) of 

the 1990 Act, as amended, the inflationadjusted maximum increases to $2,830. 

Thus, the new CMP maximum is $2,830, 

for violations that occur on or after 

January 15, 2024. 

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, 2023, is a maximum 

daily amount of $1,240.18 Multiplying 

the $1,240 CMP maximum by the 2023 

OMB multiplier, 1.03241, yields a total 

of $1,280.19. When that number is 

rounded as required by section 5(a) of 

the 1990 Act, as amended the inflationadjusted maximum increases to $1,280. 

Thus, the new CMP maximum is $1,280, 

for violations that occur on or after 

January 15, 2024. 

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, 2023, is $2,577. Multiplying $2,577 

by the 2023 OMB multiplier, 1.03241, 

yields a total of $2,660.52. 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 $2,661. Thus, the 

new CMP maximum is $2,661, for 

violations that occur on or after January 

15, 2024. 

IV. Notice and Comment Not Required 

by the Administrative Procedure Act 

Section 4(b)(2) of the 1990 Act, as 

amended by section 701 of the 2015 Act 

(28 U.S.C. 2461 note), provides an 

exemption from the Administrative 

Procedure Act notice and comment 

requirements in 5 U.S.C. 553. Further, 

these revisions are ministerial, 

technical, and noncontroversial. For 

these reasons, the FCA has determined 

to adopt 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, 


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2118 Federal Register / Vol. 89, No. 9 / Friday, January 12, 2024 / Rules and Regulations 

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 to read 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 

for violation of a final order issued 

under section 5.25 or 5.26 of the Act: 

The maximum daily amount is $2,830 

for violations that occur on or after 

January 15, 2024. 

(2) Amount of civil money penalty for 

violation of the Act or regulations: the 

maximum daily amount is $1,280 for 

each violation that occurs on or after 

January 15, 2024. 

(b) The maximum civil money penalty 

amount assessed under 42 U.S.C. 

4012a(f) is $2,661 for each violation that 

occurs on or after January 15, 2024, with 

no cap on the total amount of penalties 

that can be assessed against any single 

institution during any calendar year. 

Dated: January 9, 2024. 

Ashley Waldron, 

Secretary to the Board, Farm Credit 

Administration. 

[FR Doc. 2024–00595 Filed 1–11–24; 8:45 am] 

BILLING CODE 6705–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 21 

[Docket No. FAA–2022–1763] 

Airworthiness Criteria: Special Class 

Airworthiness Criteria for the Wing 

Aviation LLC; Hummingbird 

Unmanned Aircraft 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Issuance of final airworthiness 

criteria. 

SUMMARY: The FAA announces the 

special class airworthiness criteria for 

the Wing Aviation LLC (Wing) 

Hummingbird unmanned aircraft (UA). 

This document sets forth the 

airworthiness criteria that the FAA finds 

to be appropriate and applicable for the 

UA design. 

DATES: These airworthiness criteria are 

effective February 12, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Mack A. Martinez, Product Policy 

Management—Emerging Aircraft 

Section, AIR–62B, Technical Policy 

Branch, Policy and Standards Division, 

Aircraft Certification Service, Federal 

Aviation Administration, 2300 East 

Devon Avenue, Room 335/339, Des 

Plaines, IL 60018, telephone (847) 294– 

7481. 

SUPPLEMENTARY INFORMATION: 

Background 

Wing Aviation LLC (Wing) applied to 

the FAA on September 19, 2018, for a 

special class type certificate (TC) under 

14 CFR 21.17(b) for the Model 

Hummingbird UA. 

The Model Hummingbird consists of 

a fixed-wing airplane UA and its 

associated elements (AE) including 

communication links and components 

that control the UA. The Model 

Hummingbird UA has a maximum gross 

takeoff weight of approximately 15 

pounds. It is approximately 3.4 feet in 

width, 4.2 feet in length, and 9.4 inches 

in height. The Model Hummingbird UA 

is battery powered using electric motors 

for vertical takeoff, landing, and forward 

flight. The unmanned aircraft system 

(UAS) operations would rely on high 

levels of automation and may include 

multiple UA operated by a single pilot, 

up to a ratio of 20 UA to 1 pilot. Wing 

intends for the Model Hummingbird to 

be used to deliver packages. The 

proposed concept of operations 

(CONOPS) for the Model Hummingbird 

includes a maximum operating altitude 

of 400 feet above ground level, a 

maximum cruise speed of 68 knots, 

operations beyond visual line of sight 

(BVLOS), and operations over people 

(OOP). Wing has not requested approval 

for flight into known icing for the Model 

Hummingbird UA. 

Under § 21.17(c), an application for 

type certification is effective for 3 years. 

Section 21.17(d) provides that where a 

TC has not been issued within that 3- 

year time limit, the applicant may file 

for an extension and update the 

designated applicable regulations in the 

type certification basis. The effective 

date of the applicable airworthiness 

requirements for the updated type 

certification basis must not be earlier 

than 3 years before the date of issue of 

the TC. Since the project was not 

certificated within 3 years after the 

application date above, the FAA 

approved the applicant’s request to 

extend the application for type 

certification. As a result, the date of the 

updated type certification basis is 

September 26, 2022. 

The FAA issued a notice of proposed 

airworthiness criteria for the Wing 

Model Hummingbird UA, which 

published in the Federal Register on 

February 8, 2023 (88 FR 8333). 

Discussion of Comments 

The FAA received responses from 5 

commenters. The comments came from 

industry organizations such as the Air 

Line Pilots Association (ALPA), the 

Association for Uncrewed Vehicle 

Systems International (AUVSI), the 

Small Unmanned Aerial Vehicles (UAV) 

Coalition, the Commercial Drone 

Alliance, and Wing Aviation LLC. 

Specific Issues Raised Within the Scope 

of the Notice 

D&R.100 UA Signal Monitoring and 

Transmission: The FAA proposed 

criteria on the minimum types of 

information the FAA finds are necessary 

for the UA to transmit to the AE for 

continued safe flight and operation. 

Comment Summary: ALPA is 

concerned with the possibility of cyber 

security breaches that could allow 

unauthorized individuals to take control 

of a UA, potentially leading to safety 

issues. As such, it is important to 

address these concerns and establish an 

acceptable envelope of tolerance for UA 

operation that ensures the security of 

the signal monitoring and transmission 

systems. 

FAA Response: These comments are 

outside the scope for D&R.100. The 

comments by ALPA on cyber security, 

D&R.115, are addressed in the following 

paragraph. 


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