Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Rules and Regulations 1293 

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. 

4The inflation-adjusted CMP in effect on January 

15, 2017, for a violation of a final order is $2,224 

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

regulations. 

and suppliers) that are indemnified by 

the Price-Anderson Act, 42 U.S.C. 

2210(d). See 10 CFR 851.5(a). 

* * * * * 

PART 1013—PROGRAM FRAUD CIVIL 

REMEDIES AND PROCEDURES 

■ 24. The authority citation for part 

1013 continues to read as follows: 

Authority: 31 U.S.C. 3801–3812; 28 U.S.C. 

2461 note. 

■ 25. Section 1013.3 is amended by 

revising paragraphs (a)(1)(iv) and 

(b)(1)(ii) to read as follows: 

§ 1013.3 Basis for civil penalties and 

assessments. 

(a) * * * 

(1) * * * 

(iv) Is for payment for the provision 

of property or services which the person 

has not provided as claimed, shall be 

subject, in addition to any other remedy 

that may be prescribed by law, to a civil 

penalty of not more than $11,181 for 

each such claim. 

* * * * * 

(b) * * * 

(1) * * * 

(ii) Contains or is accompanied by an 

express certification or affirmation of 

the truthfulness and accuracy of the 

contents of the statement, shall be 

subject, in addition to any other remedy 

that may be prescribed by law, to a civil 

penalty of not more than $11,181 for 

each such statement. 

* * * * * 

PART 1017—IDENTIFICATION AND 

PROTECTION OF UNCLASSIFIED 

CONTROLLED NUCLEAR 

INFORMATION 

■ 26. The authority citation for part 

1017 continues to read as follows: 

Authority: 42 U.S.C. 7101 et seq.; 50 U.S.C. 

2401 et seq.; 42 U.S.C. 2168; 28 U.S.C. 2461 

note. 

■ 27. Section 1017.29 is amended by 

revising paragraph (c) to read as follows: 

§ 1017.29 Civil penalty. 

* * * * * 

(c) Amount of penalty. The Director 

may propose imposition of a civil 

penalty for violation of a requirement of 

a regulation under paragraph (a) of this 

section or a compliance order issued 

under paragraph (b) of this section, not 

to exceed $264,093 for each violation. 

* * * * * 

PART 1050—FOREIGN GIFTS AND 

DECORATIONS 

■ 28. The authority citation for part 

1050 continues to read as follows: 

Authority: The Constitution of the United 

States, Article I, Section 9; 5 U.S.C. 7342; 22 

U.S.C. 2694; 42 U.S.C. 7254 and 7262; 28 

U.S.C. 2461 note. 

■ 29. Section 1050.303 is amended by 

revising the last sentence in paragraph 

(d) to read as follows: 

§ 1050.303 Enforcement. 

* * * * * 

(d) * * * The court in which such 

action is brought may assess a civil 

penalty against such employee in any 

amount not to exceed the retail value of 

the gift improperly solicited or received 

plus $20,021. 

[FR Doc. 2018–00206 Filed 1–10–18; 8:45 am] 

BILLING CODE 6450–01–P 

FARM CREDIT ADMINISTRATION 

12 CFR Part 622 

RIN 3052–AD29 

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 (Reform Act), and further 

amended by the Biggert-Waters Flood 

Insurance Reform Act of 2012 (BiggertWaters Act). 

DATES: Effective date: This regulation is 

effective on January 15, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Michael T. Wilson, Policy Analyst, 

Office of Regulatory Policy, (703) 883– 

4124, TTY (703) 883–4056, wilsonm@

fca.gov, or Autumn R. Agans, AttorneyAdvisor, Office of General Counsel, 

(703) 883–4082, TTY (703) 883–4056, 

agansa@fca.gov. 

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 

Flood Disaster Protection Act of 1973, as 

amended. 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 up to a maximum daily 

amount of $1,000 4 during which such 

violation continues. This CMP 

maximum was set by the Farm Credit 

Amendments Act of 1985, which 

amended the Farm Credit Act. Orders 


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1294 Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Rules and Regulations 

5The inflation-adjusted CMP in effect on January 

15, 2017, for a violation of the Farm Credit Act or 

a regulation issued under the Farm Credit Act is 

$1,005 per day, as set forth in § 622.61(a)(2) of FCA 

regulations. 

6Prior adjustments were made under the 1990 

Act. 

7 42 U.S.C. 4012a. 

8Public Law 103–325, title V, 108 Stat. 2160, 

2255–87 (September 23, 1994). 

9Public Law 112–141, 126 Stat. 405 (July 6, 

2012). 

10The inflation-adjusted CMP in effect on January 

15, 2017, for a flood insurance violation is $2,090, 

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

11Public Law 114–74, sec. 701(b)(1). 

12The CPI is published by the Department of 

Labor, Bureau of Statistics, and is available at its 

website: ftp://ftp.bls.gov/pub/special.requests/cpi/ 

cpiai.txt. 13Pursuant to section 5(a)(3) of the 2015 Act, any 

increase determined under the subsection shall be 

rounded to the nearest $1. 14Pursuant to section 4(d) of the 1990 Act, as 

amended. 15OMB Circular M–18–03, Implementation of 

Penalty Inflation Adjustments for 2018, Pursuant to 

the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015. 

16 28 U.S.C. 2461 note, section 7(a). 

17OMB Circular M–18–03, Implementation of 

Penalty Inflation Adjustments for 2018, Pursuant to 

the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015. 

18 12 CFR 622.61(a)(1). 

19 12 CFR 622.61(a)(2). 

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 

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 5 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.6

The FCA also enforces the Flood 

Disaster Protection Act of 1973,7 as 

amended by the National Flood 

Insurance Reform Act of 1994,8 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 $2,000.9 10

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 

each year.11 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.12

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.13

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.14

III. Yearly Adjustments 

A. Mathematical Calculations of 2018 

Adjustments 

The adjustment requirement affects 

two provisions of section 5.32(a) of the 

Farm Credit Act. For the 2018 yearly 

adjustments to the CMPs set forth by the 

Farm Credit Act, the calculation 

required by the 2017 White House 

Office of Management and Budget 

(OMB) guidance 15 is based on the 

percentage by which the CPI for October 

2017 exceeds the CPIs for October 2016. 

The OMB set forth guidance, as required 

by the 2015 Act,16 with a multiplier for 

calculating the new CMP values.17 The 

OMB multiplier for the 2018 CMPs is 

1.02041. 

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 1.02041. 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, 2017, 

is a maximum daily amount of $2,224.18

Multiplying the $2,224 CMP by the 2017 

OMB multiplier, 1.02041, yields a total 

of $2,269.39. When that number is 

rounded as required by section 5(a) of 

the 1990 Act, as amended, the inflationadjusted maximum increases to $2,269. 

Thus, the new CMP maximum is $2,269. 

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, 2017, is a maximum 

daily amount of $1,005.19 Multiplying 

the $1,005 CMP maximum by the 2017 

OMB multiplier, 1.02041, yields a total 

of $1,025.51. When that number is 

rounded as required by section 5(a) of 

the 1990 Act, as amended the inflationadjusted maximum increases to $1,026. 

Thus, the new CMP maximum is $1,026. 

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) is $2,090. Multiplying 

$2,090 by the 2017 OMB multiplier, 

1.02041, yields a total of $2,132.65. 

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 $2,133. Thus, the 

new CMP maximum is $2,133. 

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. 


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Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Rules and Regulations 1295 

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 

for violation of a final order issued 

under section 5.25 or 5.26 of the Act: 

The maximum daily amount is $2,269 

for violations that occur on or after 

January 15, 2018. 

(2) Amount of civil money penalty for 

violation of the Act or regulations: The 

maximum daily amount is $1,026 for 

each violation that occurs on or after 

January 15, 2018. 

(b) The maximum civil money penalty 

amount assessed under 42 U.S.C. 

4012a(f) is: $385 for each violation that 

occurs on or after January 16, 2009, but 

before July 1, 2013, with total penalties 

under such statute not to exceed 

$120,000 for any single institution 

during any calendar year; $2,000 for 

each violation that occurs on or after 

July 1, 2013, but before August 1, 2016, 

with no cap on the total amount of 

penalties that can be assessed against 

any single institution during any 

calendar year; and $2,133 for each 

violation that occurs on or after January 

15, 2018, with no cap on the total 

amount of penalties that can be assessed 

against any single institution during any 

calendar year. 

Dated: January 8, 2018. 

Dale L. Aultman, 

Secretary, Farm Credit Administration Board. 

[FR Doc. 2018–00336 Filed 1–10–18; 8:45 am] 

BILLING CODE 6705–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 211 

[Release No. SAB 117] 

Staff Accounting Bulletin No. 117 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Publication of Staff Accounting 

Bulletin. 

SUMMARY: This staff accounting bulletin 

modifies portions of the interpretive 

guidance included in the Staff 

Accounting Bulletin Series in order to 

make the relevant interpretive guidance 

consistent with authoritative accounting 

guidance and Securities and Exchange 

Commission rules and regulations. 

Specifically, the staff is updating the 

Series in order to bring existing 

guidance into conformity with the 

Financial Accounting Standards Board 

Accounting Standards Codification 

Topic 321, Investments—Equity 

Securities. 

DATES: Effective: January 11, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Brian Staniszewski, Professional 

Accounting Fellow, Office of the Chief 

Accountant at (202) 551–5300 or 

Lindsay McCord, Associate Chief 

Accountant, Division of Corporation 

Finance at (202) 551–3400, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549. 

SUPPLEMENTARY INFORMATION: The 

statements in staff accounting bulletins 

are not rules or interpretations of the 

Commission, nor are they published as 

bearing the Commission’s official 

approval. They represent interpretations 

and practices followed by the Division 

of Corporation Finance and the Office of 

the Chief Accountant in administering 

the disclosure requirements of the 

federal securities laws. 

List of Subjects in 17 CFR Part 211 

Accounting, Reporting and 

recordkeeping requirements, Securities. 

Dated: November 29, 2017. 

Brent J. Fields, 

Secretary. 

Accordingly, part 211 of title 17 of the 

Code of Federal Regulations is amended 

as follows: 

PART 211—INTERPRETATIONS 

RELATING TO FINANCIAL REPORTING 

MATTERS 

■ 1. Add an authority citation for part 

211 to read as follows: 

Authority: 15 U.S.C. 77g, 15 U.S.C. 77s(a), 

15 U.S.C. 77aa(25) and (26), 15 U.S.C. 78c(b), 

17 CFR 78l(b) and 13(b), 17 CFR 78m(b) and 

15 U.S.C. 80a–8, 30(e) 15 U.S.C. 80a–29(e), 

15 U.S.C. 80a–30, and 15 U.S.C. 80a–37(a). 

■ 2. Amend the table in subpart B by 

adding an entry for Staff Accounting 

Bulletin No. 117 at the end of the table 

to read as follows: 

Subpart B—Staff Accounting Bulletins 

Subject Release No. Date Fed. Reg. Vol. and page 

*******

Publication of Staff Accounting Bulletin No. 117 .......... SAB–117 1/11/2018 [INSERT Federal Register CITATION]. 

Note: The text of SAB 117 will not appear 

in the Code of Federal Regulations. 

Staff Accounting Bulletin No. 117 

This staff accounting bulletin 

modifies portions of the interpretive 

guidance included in the Staff 

Accounting Bulletin Series in order to 

make the relevant interpretive guidance 

consistent with current authoritative 

accounting and auditing guidance and 

Securities and Exchange Commission 

(‘‘Commission’’) rules and regulations. 


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