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

3175 

Vol. 87, No. 14 

Friday, January 21, 2022 

MERIT SYSTEMS PROTECTION 

BOARD 

5 CFR Part 1201 

Civil Monetary Penalty Inflation 

Adjustment 

AGENCY: Merit Systems Protection 

Board. 

ACTION: Final rule. 

SUMMARY: This final rule adjusts the 

level of civil monetary penalties (CMPs) 

in regulations maintained and enforced 

by the Merit Systems Protection Board 

(MSPB) with an annual adjustment 

under the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 (the 2015 Act) and Office of 

Management and Budget (OMB) 

guidance. 

DATES: This final rule is effective on 

January 21, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Everling, Acting Clerk of the 

Board, Merit Systems Protection Board, 

1615 M Street NW, Washington, DC 

20419; phone: (202) 653–7200; Fax: 

(202) 653–7130; or email: mspb@

mspb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Federal Civil Penalties Inflation 

Adjustment Act of 1990 (the 1990 Act), 

Public Law 101–410, provides for the 

regular evaluation of CMPs by Federal 

agencies. Periodic inflationary 

adjustments of CMPs ensure that the 

consequences of statutory violations 

adequately reflect the gravity of such 

offenses and that CMPs are properly 

accounted for and collected by the 

Federal Government. In April 1996, the 

1990 Act was amended by the Debt 

Collection Improvement Act of 1996 

(the 1996 Act), Public Law 104–134, 

requiring Federal agencies to adjust 

their CMPs at least once every four 

years. However, because inflationary 

adjustments to CMPs were statutorily 

capped at ten percent of the maximum 

penalty amount, but only required to be 

calculated every four years, CMPs in 

many cases did not correspond with the 

true measure of inflation over the 

preceding four-year period, leading to a 

decline in the real value of the penalty. 

To remedy this decline, the 2015 Act 

(section 701 of Pub. L. 114–74) requires 

agencies to adjust CMP amounts with 

annual inflationary adjustments through 

a rulemaking using a methodology 

mandated by the legislation. The 

purpose of these adjustments is to 

maintain the deterrent effect of civil 

penalties. 

A civil monetary penalty is ‘‘any 

penalty, fine, or other sanction’’ that: (1) 

‘‘is for a specific amount’’ or ‘‘has a 

maximum amount’’ under Federal law; 

and (2) a Federal agency assesses or 

enforces ‘‘pursuant to an administrative 

proceeding or a civil action in the 

Federal courts.’’ 28 U.S.C. 2461 note. 

The MSPB is authorized to assess 

CMPs pursuant to 5 U.S.C. 1215(a)(3) 

and 5 U.S.C. 7326 in disciplinary 

actions brought by the Special Counsel. 

The corresponding MSPB regulation for 

both CMPs is 5 CFR 1201.126(a). As 

required by the 2015 Act, and pursuant 

to guidance issued by OMB, MSPB is 

now making an annual adjustment for 

2022, according to the prescribed 

formulas. 

II. Calculation of Adjustment 

The CMP listed in 5 U.S.C. 1215(a)(3) 

was established in 1978 with the 

enactment of the Civil Service Reform 

Act of 1978 (CSRA), Public Law 95–454, 

section 202(a), 92 Stat. 1121–30 (Oct. 

13, 1978), and originally codified at 5 

U.S.C. 1207(b). That CMP was last 

amended by section 106 of the 

Whistleblower Protection Enhancement 

Act of 2012, Public Law 112–199, 12 

Stat. 1468 (Nov. 27, 2012), now codified 

at 5 U.S.C. 1215(a)(3), which provided 

for a CMP ‘‘not to exceed $1,000.’’ The 

CMP authorized in 5 U.S.C. 7326 was 

established in 2012 by section 4 of the 

Hatch Act Modernization Act of 2012 

(Hatch Act), Public Law 112–230, 126 

Stat. 1617 (Dec. 28, 2012), which 

provided for a CMP ‘‘not to exceed 

$1,000.’’ On February 2, 2021, MSPB 

issued a final rule which increased the 

maximum CMP allowed under both 5 

U.S.C. 1215(a)(3) and 5 U.S.C. 7326 to 

$1,125 for the year 2021. See 86 FR 7797 

(Feb. 2, 2021). This increase reflected 

the annual increase for the year 2021 

mandated by the 2015 Act. 

On December 15, 2021, OMB issued 

guidance on calculating the annual 

inflationary adjustment for 2022. See 

Memorandum from Shalanda D. Young, 

Acting Dir., OMB, to Heads of Executive 

Departments and Agencies re: 

Implementation of Penalty Inflation 

Adjustments for 2022, Pursuant to the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015, M–22–07 (Dec. 15, 2021). Therein, 

OMB notified agencies that the annual 

adjustment multiplier for 2022, based 

on the Consumer Price Index for All 

Urban Consumers (CPI–U), is 1.06222 

and that the 2022 annual adjustment 

amount is obtained by multiplying the 

2021 penalty amount by the 2022 

annual adjustment multiplier, and 

rounding to the nearest dollar. 

Therefore, the new maximum penalty 

under the CSRA and the Hatch Act is 

$1,125 × 1.06222 = $1,195.00. 

III. Effective Date of Penalties 

The revised CMP amounts will go into 

effect on January 21, 2022. All 

violations for which CMPs are assessed 

after the effective date of this rule will 

be assessed at the adjusted penalty level 

regardless of whether the violation 

occurred before the effective date. 

IV. Procedural Requirements 

A. Administrative Procedure Act 

Pursuant to 5 U.S.C. 553(b), the MSPB 

has determined that good cause exists 

for waiving the general notice of 

proposed rulemaking and public 

comment procedures as to these 

technical amendments. The notice and 

comment procedures are being waived 

because Congress has specifically 

exempted agencies from these 

requirements when implementing the 

2015 Act. The 2015 Act explicitly 

requires the agency to make subsequent 

annual adjustments notwithstanding 5 

U.S.C. 553, the section of the 

Administrative Procedure Act that 

normally requires agencies to engage in 

notice and comment. It is also in the 

public interest that the adjusted rates for 

CMPs under the CSRA and the Hatch 

Act become effective as soon as possible 

to maintain their effective deterrent 

effect. 


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3176 Federal Register / Vol. 87, No. 14 / Friday, January 21, 2022 / Rules and Regulations 

B. Regulatory Impact Analysis: 

E.O.12866 

The MSPB has determined that this is 

not a significant regulatory action under 

E.O. 12866. Therefore, no regulatory 

impact analysis is required. 

C. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

requires an agency to prepare a 

regulatory flexibility analysis for rules 

unless the agency certifies that the rule 

will not have a significant economic 

impact on a substantial number of small 

entities. The RFA applies only to rules 

for which an agency is required to first 

publish a proposed rule. See 5 U.S.C. 

603(a) and 604(a). As discussed above, 

the 2015 Act does not require agencies 

to first publish a proposed rule when 

adjusting CMPs within their 

jurisdiction. Thus, the RFA does not 

apply to this final rule. 

D. Paperwork Reduction Act 

This document does not contain 

information collection requirements 

subject to the Paperwork Reduction Act 

of 1995, Public Law 104–13 (44 U.S.C. 

Chapter 35). 

E. Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801, et seq.), the Office of 

Information and Regulatory Affairs 

designated this rule as not a ‘‘major 

rule’’ as defined by 5 U.S.C. 804(2). 

List of Subjects in 5 CFR Part 1201 

Administrative practice and 

procedure, Civil rights, Government 

employees. 

For the reasons set forth above, 5 CFR 

part 1201 is amended as follows: 

PART 1201—PRACTICES AND 

PROCEDURES 

■ 1. The authority citation for part 1201 

continues to read as follows: 

Authority: 5 U.S.C. 1204, 1305, and 7701, 

and 38 U.S.C. 4331, unless otherwise noted. 

§ 1201.126 [Amended] 

■ 2. Section 1201.126 is amended in 

paragraph (a) by removing ‘‘$1,125’’ and 

adding in its place ‘‘$1,195.’’ 

Jennifer Everling, 

Acting Clerk of the Board. 

[FR Doc. 2022–01122 Filed 1–20–22; 8:45 am] 

BILLING CODE 7401–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2021–0189; Project 

Identifier AD–2020–00645–R; Amendment 

39–21875; AD 2021–26–16] 

RIN 2120–AA64 

Airworthiness Directives; Various 

Restricted Category Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

type certificated Model UH–1H 

restricted category helicopters. This AD 

was prompted by multiple reports of 

failure of the main driveshaft. This AD 

requires establishing a limit to replace 

certain main driveshafts, and a one-time 

and repetitive inspections of the main 

driveshafts. The FAA is issuing this AD 

to address the unsafe condition on these 

products. 

DATES: This AD is effective February 25, 

2022. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of February 25, 2022. 

ADDRESSES: For service information 

identified in this final rule, contact U.S. 

Army Materiel Command Logistics Data 

Analysis Center (USAMC LDAC), 

ATTN: Equipment Publication Control 

Officers (EPCOs), Building 3305, Redeye 

Road, Redstone Arsenal, AL 

35898–7466; telephone (256) 955–7716 

or 1–866–211–3367; email 

usarmy.redstone.ldac.mbx.logetm@

mail.mil; or at https:// 

enterprise.armyerp.army.mil. 

You may also contact the following as 

applicable: 

Arrow Falcon Exporters Inc., 2081 S 

Wildcat Way, Porterville, CA 93257; 

telephone (559) 781–8604; fax (559) 

781–9271; email afe@arrowfalcon.com. 

Global Helicopter Technology, Inc., 

P.O. Box 180681, Arlington, Texas 

76096; telephone (817) 557–3391; email 

ghti@ghti.net. 

Hagglund Helicopters, LLC, 5101 NW 

A Avenue, Pendleton, OR 97801; 

telephone (800) 882–3554 or (541) 

276–3554; fax (541) 276–1597. 

JASPP Engineering Services, LLC., 

511 Harmon Terrace, Arlington, TX 

76010; telephone (817) 465–4495; or at 

www.jjaspp.com. 

Northwest Rotorcraft, LLC, 1000 85th 

Ave. SE, Olympia, WA 98501; telephone 

(360) 754–7200; or at 

www.nwhelicopters.com. 

Overseas Aircraft Support, Inc., P.O. 

Box 898, Lakeside, AZ 85929; telephone 

(928) 368–6965; fax (928) 368–6962. 

Richards Heavylift Helo, Inc., 1181 

Osprey Nest Point, Orange Park, FL 

32073; (904) 472–1481; email 

Glenn7444@msn.com. 

Rotorcraft Development Corporation, 

P.O. Box 430, Corvallis, MT 59828; 

telephone (207) 329–2518; email 

administration@

rotorcraftdevelopment.com. 

Southwest Florida Aviation 

International, Inc., 28000–A9 Airport 

Road, Bldg. 101, Punta Gorda, FL 

33982–9587; telephone (941) 637–1161; 

fax (941) 637–6264; email info@

swfateam.org. 

Tamarack Helicopters, Inc., 2849 

McIntyre Rd., Stevensville, MT 59870; 

telephone (406) 777–0144; or at 

www.tamarackhelicopters.com. 

You may view the service information 

at the FAA, Office of the Regional 

Counsel, Southwest Region, 10101 

Hillwood Pkwy., Room 6N–321, Fort 

Worth, TX 76177. For information on 

the availability of this material at the 

FAA, call (817) 222–5110. Service 

information that is incorporated by 

reference is also available at https://

www.regulations.gov by searching for 

and locating Docket No. FAA–2021– 

0189. 

Examining the AD Docket 

You may examine the AD docket at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2021–0189; or in person at Docket 

Operations between 9 a.m. and 5 p.m., 

Monday through Friday, except Federal 

holidays. The AD docket contains this 

final rule, any comments received, and 

other information. The address for 

Docket Operations is U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue SE, Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Ameet Shrotriya, Aerospace Engineer, 

Delegation Oversight Section, DSCO 

Branch, Compliance & Airworthiness 

Division, FAA, 10101 Hillwood Pkwy., 

Fort Worth, TX 76177; telephone (817) 

222–5525; email ameet.shrotriya@

faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to restricted category Model 

UH–1H helicopters with KAflex main 

driveshaft part number (P/N) 

SKCP2180–1, SKCP2281–1, 


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