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Federal Register / Vol. 86, No. 16 / Wednesday, January 27, 2021 / Rules and Regulations
each year.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 those whose associated violation predated such increase, which are assessed after the date the increase takes effect.
Section 5b 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.11
The increase for each CMP adjusted for inflation must be rounded using a method prescribed by section 5a 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 2021
Adjustments The adjustment requirement affects two provisions of section 5.32a of the Farm Credit Act. For the 2021 yearly adjustments to the CMPs set forth by the Farm Credit Act, the calculation required by the 2020 White House Office of Management and Budget OMB guidance 14 is based on the percentage by which the CPI for October 2020 exceeds the CPIs for October 2019.
The OMB set forth guidance, as required by the 2015 Act,15 with a multiplier for
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10 Public
Law 11474, sec. 701b1.
11 The CPI is published by the Department of Labor, Bureau of Statistics, and is available at its website: https www.bls.gov/cpi/.
12 Pursuant to section 5a3 of the 2015 Act, any increase determined under the subsection shall be rounded to the nearest $1.
13 Pursuant to section 4d of the 1990 Act, as amended.
14 OMB Circular M2110, Implementation of Penalty Inflation Adjustments for 2021, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
15 28 U.S.C. 2461 note, section 7a.

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calculating the new CMP values.16 The 2020 OMB multiplier for the 2021 CMPs is 1.01182.
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 1.01182. 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 622.61a1
The inflation-adjusted CMP currently in effect for violations of a final order occurring on or after January 15, 2020, is a maximum daily amount of $2,367.17
Multiplying the $2,367 CMP by the 2020
OMB multiplier, 1.01182, yields a total of $2,394.98. When that number is rounded as required by section 5a of the 1990 Act, as amended, the inflationadjusted maximum increases to $2,395.
Thus, the new CMP maximum is $2,395, for violations that occur on or after January 15, 2021.
2. New Penalty Amount in 622.61a2
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, 2020, is a maximum daily amount of $1,071.18 Multiplying the $1,071 CMP maximum by the 2020
OMB multiplier, 1.01182, yields a total of $1,083.66. When that number is rounded as required by section 5a of the 1990 Act, as amended the inflationadjusted maximum increases to $1,084.
Thus, the new CMP maximum is $1,084, for violations that occur on or after January 15, 2021.
3. New Penalty Amounts for Flood Insurance Violations Under 622.61b The existing maximum CMP for a pattern or practice of flood insurance violations pursuant to 42 U.S.C.
4012af5 occurring on or after January 15, 2020, is $2,226. Multiplying $2,226
by the 2020 OMB multiplier, 1.01182, yields a total of $2,252.31. When that number is rounded as required by section 5a of the 1990 Act, as amended, the new maximum assessment of the CMP for violating 42
U.S.C. 4012af5 is $2,252. Thus, the 16 OMB Circular M2110, Implementation of Penalty Inflation Adjustments for 2021, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
17 12 CFR 622.61a1. As noted above, we discovered a transposition error, so the correct maximum daily amount for 2020 is $2,367.
Accordingly, we use the corrected amount to compute the maximum amount for CMP violations that occur on or after January 15, 2021.
18 12 CFR 622.61a2.

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new CMP maximum is $2,252, for violations that occur on or after January 15, 2021.
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. 553bB, and adopts this rule in final form.
V. Regulatory Flexibility Act Pursuant to section 605b 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 622RULES OF PRACTICE AND
PROCEDURE
1. The authority citation for part 622
continues to read as follows:

Authority: Secs. 5.9, 5.10, 5.17, 5.255.37
of the Farm Credit Act 12 U.S.C. 2243, 2244, 2252, 22612273; 28 U.S.C. 2461 note; and 42 U.S.C. 4012af.

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 FCAs 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
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