Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Rules and Regulations 3617 

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, 2024, for a violation of a final order is $2,830 

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

regulations. 

6The inflation-adjusted CMP in effect on January 

15, 2024, for a violation of the Farm Credit Act or 

a regulation issued under the Farm Credit Act is 

$1,280 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, 2024, for a flood insurance violation is $2,661, 

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/. 

FARM CREDIT ADMINISTRATION 

12 CFR Part 622 

RIN 3052–AD64 

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, 2025. 

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 

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 


lotter on DSK11XQN23PROD with RULES1
3618 Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Rules and Regulations 

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–25–02, Implementation of 

Penalty Inflation Adjustments for 2025, 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–25–02, Implementation of 

Penalty Inflation Adjustments for 2025, 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). 

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 2025 

Adjustments 

The adjustment requirement affects 

two provisions of section 5.32(a) of the 

Farm Credit Act. For the 2025 yearly 

adjustments to the CMPs set forth by the 

Farm Credit Act, the calculation 

required by the 2024 White House 

Office of Management and Budget 

(OMB) guidance 14 is based on the 

percentage by which the CPI for October 

2024 exceeds the CPI for October 2023. 

The OMB set forth guidance, as required 

by the 2015 Act,15 with a multiplier for 

calculating the new CMP values.16 The 

2024 OMB multiplier for the 2025 CMPs 

is 1.02598. 

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 1.02598. 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, 2024, 

is a maximum daily amount of $2,830.17

Multiplying the $2,830 CMP by the 2024 

OMB multiplier, 1.02598, yields a total 

of $2,903.52. When that number is 

rounded as required by section 5(a) of 

the 1990 Act, as amended, the inflationadjusted maximum increases to $2,904. 

Thus, the new CMP maximum is $2,904, 

for violations that occur on or after 

January 15, 2025. 

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, 2024, is a maximum 

daily amount of $1,280.18 Multiplying 

the $1,280 CMP maximum by the 2024 

OMB multiplier, 1.02598, yields a total 

of $1,313.25. When that number is 

rounded as required by section 5(a) of 

the 1990 Act, as amended the inflationadjusted maximum increases to $1,313. 

Thus, the new CMP maximum is $1,313, 

for violations that occur on or after 

January 15, 2025. 

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, 2024, is $2,661. Multiplying $2,661 

by the 2024 OMB multiplier, 1.02598, 

yields a total of $2,730.13. 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 $2,730. Thus, the 

new CMP maximum is $2,730, for 

violations that occur on or after January 

15, 2025. 

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, 

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 $2,904 

for violations that occur on or after 

January 15, 2025. 

(2) Amount of civil money penalty for 

violation of the Act or regulations: the 

maximum daily amount is $1,313 for 

each violation that occurs on or after 

January 15, 2025. 

(b) The maximum civil money penalty 

amount assessed under 42 U.S.C. 

4012a(f) is $2,730 for each violation that 

occurs on or after January 15, 2025, with 

no cap on the total amount of penalties 

that can be assessed against any single 

institution during any calendar year. 

Dated: January 10, 2025. 

Ashley Waldron, 

Secretary to the Board, Farm Credit 

Administration. 

[FR Doc. 2025–00963 Filed 1–14–25; 8:45 am] 

BILLING CODE 6705–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 747 

RIN 3133–AF65 

Civil Monetary Penalty Inflation 

Adjustment 

AGENCY: National Credit Union 

Administration (NCUA). 


lotter on DSK11XQN23PROD with RULES1