[Federal Register Volume 66, Number 163 (Wednesday, August 22, 2001)]
[Rules and Regulations]
[Page 44027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21154]



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 Rules and Regulations
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  Federal Register / Vol. 66, No. 163 / Wednesday, August 22, 2001 / 
Rules and Regulations  

[[Page 44027]]



FARM CREDIT SYSTEM INSURANCE CORPORATION

12 CFR Part 1411

RIN 3055-AA07


Rules of Practice and Procedure; Rule Adjusting Civil Money 
Penalties for Inflation

AGENCY: Farm Credit System Insurance Corporation.

ACTION: Final rule.

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SUMMARY: This rule contains the cost-of-living adjustments for the 
civil money penalties specified in the Farm Credit Act of 1971, as 
amended. Since October 1996, the penalty could not exceed $110 per day. 
The new penalty cannot exceed $117 per day. The new penalty is set in 
accordance with the Federal Civil Penalties Adjustment Act of 1990, as 
amended by the Debt Collection Improvement Act of 1996, which requires 
us to adjust our penalties for inflation every four years.

EFFECTIVE DATE: This rule will become effective on August 22, 2001.

FOR FURTHER INFORMATION CONTACT: Dorothy L. Nichols, General Counsel, 
Farm Credit System Insurance Corporation, McLean, VA 22102, (703) 883-
4211.

SUPPLEMENTARY INFORMATION:

I. Penalty Provisions

    Two provisions of the Farm Credit Act of 1971, as amended (Act) 
authorize the Farm Credit System Insurance Corporation (FCSIC) to 
impose civil money penalties. First, section 5.65(c) specifies that any 
insured System bank that willfully fails or refuses to file any 
certified statement or pay any premium required under Part E of the Act 
shall be subject to a penalty of $100 for each day that the violation 
continues. Second, section 5.65(d) makes it unlawful for anyone 
convicted of a criminal offense involving dishonesty or a breach of 
trust to serve as a director, officer, or employee of any System 
institution, without the prior written consent of the Farm Credit 
Administration. For a willful violation of this section, the FCSIC may 
subject the institution to a penalty of $100 for each day that the 
violation continues. In 1996, the FCSIC applied the inflation formula 
provided in the Federal Civil Penalties Adjustment Act of 1990, (28 
U.S.C. 2461 note) and increased the penalties to $110.

II. Cost-of-Living Adjustment

    The prescribed cost-of-living adjustment formula or inflation 
factor is based on the difference between the Consumer Price Index 
(CPI) for June of 1999 and the CPI for June of 1996, the year the 
penalty was last set. We used the Department of Labor Bureau of Labor 
Statistics--All Urban Consumers Tables. The CPI value was 156.7 for 
June 1996 and was 166.2 for June 1999, resulting in an inflation factor 
of 1.06 (i.e., a 6-percent increase). Using this adjustment the $110 
penalty goes to $116.6 and with the rounding method prescribed in the 
statute it becomes $117.
    The existing penalty of $110 continues to apply until amended by 
the publishing of this rule in the Federal Register.
    The Federal Civil Penalties Adjustment Act of 1990, as amended by 
the Debt Collection Improvement Act of 1996, gives agencies no 
discretion in the adjustment of civil money penalties for the rate of 
inflation. It also requires a reassessment every 4 years. Moreover, 
this rule is ministerial, technical, and noncontroversial. For these 
reasons, the FCSIC 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). Therefore, this rule is adopted in final form.

List of Subjects in 12 CFR Part 1411

    Banks, banking, Civil money penalties, Penalties.

    For the reasons stated in the preamble, part 1411 of charter XIV, 
title 12 of the Code of Federal Regulations is revised to read as 
follows:

PART 1411--RULES OF PRACTICE AND PROCEDURE

    1. Revise the authority citation for part 1411 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.

Subpart A--Rules and Procedures for Assessment and Collection of 
Civil Money Penalties

    2. Revise Sec. 1411.1 to read as follows:


Sec. 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 Money Penalties Inflation 
Adjustment Act of 1990, as amended by the Debt Collection Improvement 
Act of 1996, a civil money penalty imposed pursuant to section 5.65(c) 
or (d) of the Act for a violation occurring on or after October 23, 
1996 shall not exceed $117 per day for each day the violation 
continues.

    Dated: August 16, 2001.
Kelly Mikel Williams,
Secretary, Farm Credit System Insurance Corporation Board.
[FR Doc. 01-21154 Filed 8-21-01; 8:45 am]
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