81 FR 38931 - Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Register Volume 81, Issue 115 (June 15, 2016)
Federal Register Volume 81, Issue 115 (June 15, 2016)
| Page Range | 38931-38936 | |
| FR Document | 2016-14060 |
[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)] [Rules and Regulations] [Pages 38931-38936] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14060] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Parts 28, 30, 87, 180, and 3282 [Docket No. FR-5942-I-01] RIN 2501-AD79 Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts AGENCY: Office of the General Counsel, HUD. ACTION: Interim final rule. ----------------------------------------------------------------------- SUMMARY: This interim final rule amends HUD's civil monetary penalty regulations by making inflation adjustments as mandated by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. HUD also removes three obsolete civil monetary penalty regulations previously authorized under statutes for which either HUD no longer has enforcement authority or the program is no longer active. Lastly, HUD makes a technical change to the regulation language implementing the Program Fraud Civil Remedies Act which, due to a typographical error under the last civil money penalty adjustment, failed to include language assigning a penalty for causing a false claim or statement to be made. DATES: Effective date: August 16, 2016. Comment due date: August 15, 2016. ADDRESSES: Interested persons are invited to submit comments regarding this interim final rule. Communications must refer to the above docket number and title. There are two methods for submitting public comments. All [[Page 38932]] submissions must refer to the above docket number and title. 1. Submission of Comments by Mail. Comments may be submitted by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW., Room 10276, Washington, DC 20410-0500. 2. Electronic Submission of Comments. Interested persons may submit comments electronically through the Federal eRulemaking Portal at www.regulations.gov. HUD strongly encourages commenters to submit comments electronically. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt by HUD, and enables HUD to make them immediately available to the public. Comments submitted electronically through the www.regulations.gov Web site can be viewed by other commenters and interested members of the public. Commenters should follow the instructions provided on that site to submit comments electronically. Note: To receive consideration as public comments, comments must be submitted through one of the two methods specified above. Again, all submissions must refer to the docket number and title of the rule. No Facsimile Comments. Facsimile (fax) comments are not acceptable. Public Inspection of Public Comments. All properly submitted comments and communications submitted to HUD will be available for public inspection and copying between 8 a.m. and 5 p.m., weekdays, at the above address. Due to security measures at the HUD Headquarters building, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at 202-402-3055 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number via TTY by calling the Federal Relay Service, toll-free, at 800-877-8339. Copies of all comments submitted are available for inspection and downloading at www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Dane Narode, Associate General Counsel, Office of Program Enforcement, Department of Housing and Urban Development, 1250 Maryland Avenue SW., Suite 200, Washington, DC 20024; telephone number 202-245-4141 (this is not a toll-free number). Hearing- or speech-impaired individuals may access this number via TTY by calling the toll-free Federal Information Relay Service at 800-877- 8339. SUPPLEMENTARY INFORMATION: I. Background On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act), which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act), to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The 2015 Act requires agencies to: (1) Adjust the level of civil monetary penalties with an initial ``catch-up'' adjustment through an interim final rulemaking (IFR); and (2) make subsequent annual adjustments for inflation. Previously, the Inflation Adjustment Act required agencies to adjust CMP levels every four years based on the percentage by which the Consumer Price Index (CPI) for the month of June of the prior calendar year exceeded the CPI for the month of June of the calendar year during which the last adjustment was made. The Inflation Adjustment Act also capped the increase for each adjustment at 10 percent and rounded the adjustment based on the size of the penalty (e.g., multiple of $10 in the case of penalties less than or equal to $100). The rounding process meant that penalties would often not be increased at all if the inflation factor was not large enough. Furthermore, the cap on increases of 10 percent in tandem with the rounding meant that the formula over time caused penalties to lose value relative to total inflation. The 2015 Act updates these requirements by prescribing that agencies make annual adjustments for inflation based on the CPI for the month of October and round to the nearest dollar after an initial adjustment. In order to eliminate the inconsistent changes caused by the prior method, the 2015 Act resets the inflation adjustment by excluding prior inflationary adjustments under the Inflation Adjustment Act, which contributed to a decline in the real value of penalty levels. To do this, the 2015 Act provides that the initial adjustment shall be the percentage by which the CPI for the month of October, 2015 exceeds that of the month of October of the calendar year during which the amount of the CMP was originally established or otherwise adjusted under a provision of law other than the Inflation Adjustment Act. While the 2015 Act does not provide a cap on adjustments going forward, the initial adjustment under the 2015 Act does limit large CMP increases by providing that no initial adjustments may exceed 150 percent of the amount of the CMP as of the date the 2015 Act was enacted, November 2, 2015. Lastly, the 2015 Act requires that agencies publish an interim final rule with the initial adjustment by July 1, 2016, and have the adjustments take effect no later than August 1, 2016. The initial adjustment under the 2015 Act also provides that, following public comment, the head of an agency may reduce the required increase if the agency head determines that the increase will have a negative economic impact or the social costs of the increase outweigh the benefits; and the Director of the Office of Management and Budget concurs. II. This Interim Final Rule A. Inflation Adjustment of Civil Monetary Penalty Amounts For each component, HUD provides a table showing how the penalties are being increased pursuant to the 2015 Act. In the first column, HUD provides a description of the penalty. In the second column (``Citation,'') HUD provides the United States Code (U.S.C.) statutory citation providing for the penalty. In the third column (``Original Amount''), HUD provides the amount of the penalty as originally enacted by Congress or changed through a mechanism other than pursuant to the Inflation Adjustment Act. In the fourth column (``Regulatory Citation''), HUD lists the regulatory citation in the current Code of Federal Regulations (CFR) where the most recently amended penalty is codified. In the fifth column (``Current Amount''), HUD lists the existing penalty in the CFR. In the sixth column, (``New Amount'') HUD lists the penalty after disregarding adjustments under the Inflation Adjustment Act and applying the 2015 Act formula and cap for the first adjustment. -------------------------------------------------------------------------------------------------------------------------------------------------------- Regulatory Description Citation Original amount citation Current amount New amount -------------------------------------------------------------------------------------------------------------------------------------------------------- False Claims & Statements.......... Omnibus Budget $5,000................ Sec. 28.10 $8,500................ $10,781. Reconciliation Act of 1986 (31 U.S.C. 3802(a)(1)). [[Page 38933]] Advance Disclosure of Funding...... Department of Housing and $10,000............... Sec. 30.20 $16,000............... $18,936. Urban Development Act (42 U.S.C. 3537a(c)). Disclosure of Subsidy Layering..... Department of Housing and $10,000............... Sec. 30.25 $16,000............... $18,936. Urban Development Act (42 U.S.C. 3545(f)). FHA Mortgagees and Lenders HUD Reform Act of 1989 (12 Per Violation: $5,000 Sec. 30.35 Per Violation: $8,500 Per Violation: $9,468 Violations. U.S.C. 1735f-14(a)(2)). Per Year: $1,000,000. Per Year: $1,525,000. Per Year: $1,893,610. Other FHA Participants Violations.. HUD Reform Act of 1989 (12 Per Violation: $5,000 Sec. 30.36 Per Violation: $7,050 Per Violation: $9,468 U.S.C. 1735f-14(a)(2)). Per Year: $1,000,000. Per Year: $1,335,000. Per Year: $1,893,610. Indian Loan Mortgagees Violations.. Housing Community Per Violation: $5,000 Sec. 30.40 Per Violation: $8,000 Per Violation: $9,468 Development Act of 1992 Per Year: $1,000,000. Per Year: $1,525,000. Per Year: $1,893,610. \1\ (12 U.S.C. 1715z- 13a(g)(2)). Multifamily & Section 202 or 811 HUD Reform Act of 1989 (12 $25,000............... Sec. 30.45 $42,500............... $47,340. Owners Violations. U.S.C. 1735f-15(c)(2)). Ginnie Mae Issuers & Custodians HUD Reform Act of 1989 (12 Per Violation: $5,000 Sec. 30.50 Per Violation: $8,500 Per Violation: $9,468 Violations. U.S.C. 1723i(b)). Per Year: $1,000,000. Per Year: $1,525,000. Per Year: $1,893,610. Title I Broker & Dealers Violations HUD Reform Act of 1989 (12 Per Violation: $5,000 Sec. 30.60 Per Violation: $8,500 Per Violation: $9,468 U.S.C. 1703). Per Year: $1,000,000. Per Year: $1,525,000. Per Year: $1,893,610. Lead Disclosure Violation.......... Title X-Residential Lead- $10,000............... Sec. 30.65 $16,000............... $16,773. Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4852d(b)(1)). Section 8 Owners Violations........ Multifamily Assisted $25,000............... Sec. 30.68 $27,500............... $36,794. Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437z-1(b)(2)). Lobbying Violation................. The Lobbying Disclosure Act Min: $10,000 Max: Sec. 87.400 Min: $10,000 Max: Min: $18,936 Max: of 1995 (31 U.S.C. 1352). $100,000. $100,000. $189,361. Fair Housing Act Civil Penalties... Fair Housing Amendments Act No Priors: $10,000 One Sec. No Priors: $16,000 One No Priors: $19,787 One of 1988 (42 U.S.C. Prior: $25,000 Two or 180.671(a) Prior: $42,500 Two or Prior: $49,467 Two or 3612(g)(3)). More Priors: $50,000. More Priors: $70,000. More Priors: $98,935. Manufactured Housing Regulations Housing Community Per Violation: $1,000 Sec. 3282.10 Per Violation: $1,100 Per Violation: $2,750 Violation. Development Act of 1974 Per Year: $1,000,000. Per Year: $1,375,000. Per Year: $3,437,500. (42 U.S.C. 5410). -------------------------------------------------------------------------------------------------------------------------------------------------------- B. Correction to 24 CFR 28.10 In addition to applying the catch-up adjustment as required by the 2015 Act, HUD takes the opportunity to issue a technical correction to Sec. 28.10. On January 18, 2013, HUD published a final rule (78 FR 4059) to apply a routine inflationary adjustment to CMPs under Sec. 28.10, the regulation implementing the Program Fraud Civil Remedies Act, 31 U.S.C. 3802. Due to a typographical error, the final rule assigned a penalty for making a false claim or statement, but not for causing such claim or statement to be made. Liability is provided for both bases under 31 U.S.C. 3802, as well as under the version of Sec. 28.10 that predated the 2013 rulemaking (See 73 FR 76831, Dec. 17, 2008), and the 2013 final rule was intended only to adjust the penalty amount, not to remove a basis for liability. As such, the bases for liability enumerated in Sec. 28.10 are incomplete. Through this technical correction, HUD can ensure Sec. 28.10 fully implements the statutory requirements of 31 U.S.C. 3802. Accordingly, HUD amends Sec. Sec. 28.10(a), (b), and (c) to reflect statutory liability for causing a false claim or statement to be made, as originally intended. --------------------------------------------------------------------------- \1\ The Housing Community Development Act of 1992 (12 U.S.C. 1715z-13a(g)(2) incorporated the civil money penalties from section 536 of the HUD Reform Act of 1989 (12 U.S.C. 1715f-14), and thus the year applied for purposes of the 2015 Act adjustment is 1989. --------------------------------------------------------------------------- C. Removal of 24 CFR 30.30, 30.55, and 30.69 HUD also takes the opportunity to remove from title 24 of the CFR two outdated regulations for which HUD no longer has statutory enforcement authority, and one regulation for which the HUD program was repealed. Section 30.30 implements CMPs for violations under the Urban Homesteading Program, which was administered by HUD's Office of Community Planning and Development and ceased operation due to repeal of 12 U.S.C. 1706e on October 1, 1991. Subsequently, HUD removed its Urban Homesteading regulation at 24 CFR part 590 (79 FR 51894, Sept. 2, 2014) but inadvertently retained Sec. 30.30, which is now obsolete. Sections 30.55 and 30.69 implement CMPs for violations under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) (12 U.S.C. 5101 et seq.) and the Interstate Land Sales Full Disclosure Act (ILSFDA) (15 U.S.C. 1701 et seq.), respectively. In 2011, the Dodd-Frank Act \2\ transferred from HUD to the Consumer Financial Protection Bureau (CFPB) all of its prior authority to administer, enforce, and otherwise implement the SAFE Act and ILSFDA. Accordingly, HUD issued regulations removing 24 CFR part 3400, its SAFE Act regulation (79 FR 34225, June 16, 2014), and removed 24 CFR parts 1710, 1715, and 1720, its ILSFDA regulations (79 FR 34225, June 16, 2014). Subsequently, CFPB issued its own regulations for these statutes.\3\ In the process of updating its regulations, HUD [[Page 38934]] inadvertently retained Sec. Sec. 30.55 and 30.69, which are now obsolete. --------------------------------------------------------------------------- \2\ Public Law 111-203, 124 Stat. 1376, approved July 21, 2010. \3\ See 12 CFR parts 1007 and 1008 for the SAFE Act, and 12 CFR part 1024 for ILSFDA. --------------------------------------------------------------------------- HUD is now removing Sec. Sec. 30.30, 30.55, and 30.69 from title 24 of the CFR, as originally intended. The removal of these regulations will streamline HUD's regulations and eliminate confusion regarding the status of these programs. II. Justification for Interim Final Rulemaking HUD generally publishes rules for advance public comment in accordance with its rule on rulemaking at 24 CFR part 10. However, under 24 CFR 10.1, HUD may omit prior public notice and comment if it is ``impracticable, unnecessary, or contrary to the public interest.'' In this instance, HUD has determined that it is unnecessary to delay the effectiveness of this rule for advance public comment. This interim final rule follows the statutory directive in the 2015 Act requiring a catch-up adjustment to HUD's CMPs by applying the adjustment formula established in the statute and publishing an interim final rule. Accordingly, because calculation of the adjustment is formula-driven, HUD has limited discretion in updating its regulations to reflect the new penalty levels derived from application of the formula. HUD emphasizes that this rule addresses only the matter of the calculation of the maximum civil monetary penalties for the respective violations described in the regulations. This rule does not address the issue of the Secretary's discretion to impose or not to impose a penalty, nor the procedures that HUD must follow in initiating a civil monetary penalty action, or in seeking a civil penalty in a Fair Housing Act case. III. Effective Date Section 7 of the Department of Housing and Urban Development Act, 42 U.S.C. 3535, paragraph (o), requires that ``any regulation implementing any provision of the Department of Housing and Urban Development Reform Act of 1989 that authorizes the imposition of a civil money penalty may not become effective until after the expiration of a public comment period of not less than 60 days.'' Therefore, HUD delays the effective date to August 16, 2016, which provides for the required 60 days of public comment and compliance with the 2015 Act's statutory deadline of August 1, 2016. These new penalties apply to violations occurring after August 16, 2016. IV. Findings and Certifications Regulatory Review--Executive Orders 12866 and 13563 Under Executive Order 12866 (Regulatory Planning and Review), a determination must be made whether a regulatory action is significant and therefore, subject to review by the Office of Management and Budget (OMB) in accordance with the requirements of the order. Executive Order 13563 (Improving Regulations and Regulatory Review) directs executive agencies to analyze regulations that are ``outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with what has been learned.'' Executive Order 13563 also directs that, where relevant, feasible, and consistent with regulatory objectives, and to the extent permitted by law, agencies are to identify and consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public. As discussed above in this preamble, this interim final rule revises the civil monetary penalty regulations to make inflation adjustments required by the 2015 Act. It also provides a technical correction to 24 CFR part 28 to harmonize it with its authorizing statute and removes obsolete rules from the Code of Federal Regulations. This interim final rule is consistent with the goals of Executive Order 13563, to reduce regulatory burdens by modifying and removing ineffective or outmoded regulations. As a result of this review, OMB determined that this rule was not significant under Executive Order 12866 and Executive Order 13563. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Because HUD has determined that good cause exists to issue this rule without prior public comment, this rule is not subject to the requirement to publish an initial or final regulatory flexibility analysis under the RFA as part of such action. Unfunded Mandates Reform Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \4\ requires that an agency prepare a budgetary impact statement before promulgating a rule that includes a Federal mandate that may result in the expenditure by state, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year. If a budgetary impact statement is required, section 205 of UMRA also requires an agency to identity and consider a reasonable number of regulatory alternatives before promulgating a rule.\5\ However, the UMRA applies only to rules for which an agency publishes a general notice of proposed rulemaking. As discussed above, HUD has determined, for good cause, that prior notice and public comment is not required on this rule and, therefore, the UMRA does not apply to this interim final rule. --------------------------------------------------------------------------- \4\ 2 U.S.C. 1532. \5\ 2 U.S.C. 1534. --------------------------------------------------------------------------- Executive Order 13132, Federalism Executive Order 13132 (entitled ``Federalism'') prohibits an agency from publishing any rule that has federalism implications if the rule either imposes substantial direct compliance costs on state and local governments and is not required by statute, or the rule preempts state law, unless the agency meets the consultation and funding requirements of section 6 of the Executive Order. This rule will not have federalism implications and would not impose substantial direct compliance costs on state and local governments or preempt state law within the meaning of the Executive Order. Environmental Review This interim final rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern, or regulate, real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction, or establish, revise or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this final rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321). List of Subjects 24 CFR Part 28 Administrative practice and procedure, Claims, Fraud, Penalties. 24 CFR Part 30 Administrative practice and procedure, Grant programs--housing and community development, Loan programs--housing and community development, Mortgage insurance, Penalties. [[Page 38935]] 24 CFR Part 87 Government contracts, Grant programs, Loan programs, Lobbying, Penalties, Reporting and recordkeeping requirements. 24 CFR Part 180 Administrative practice and procedure, Aged, Civil rights, Fair housing, Individuals with disabilities, Investigations, Mortgages, Penalties, Reporting and recordkeeping requirements. 24 CFR Part 3282 Administrative practice and procedure, Consumer protection, Intergovernmental relations, Manufactured homes, Reporting and recordkeeping requirements. Accordingly, for the reasons described in the preamble, HUD amends 24 CFR parts 28, 30, 87, 180, and 3282 as follows: PART 28--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 1986 0 1. The authority citation for part 28 is revised to read as follows: Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812; 42 U.S.C. 3535(d). 0 2. In Sec. 28.10, revise paragraphs (a)(1) introductory text and (b)(1) introductory text and the first sentence in paragraph (c) to read as follows: Sec. 28.10 Basis for civil penalties and assessments. (a) * * * (1) A civil penalty of not more than $10,781 may be imposed upon any person who makes, presents, or submits, or causes to be made, presented, or submitted, a claim that the person knows or has reason to know: * * * * * (b) * * * (1) A civil penalty of not more than $10,781 may be imposed upon any person who makes, presents, or submits, or causes to be made, presented, or submitted, a written statement that: * * * * * (c) Limit on liability. If the claim or statement relates to low- income housing benefits or housing benefits for the elderly or handicapped, then a person may be held liable only if he or she has made or caused to be made the claim or statement in the course of applying for such benefits, with respect to his or her eligibility, or family's eligibility, to receive such benefits. * * * * * * * * PART 30--CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT 0 3. The authority citation for part 30 is revised to read as follows: Authority: 12 U.S.C. 1701q-1, 1703, 1723i, 1735f-14, and 1735f- 15; 15 U.S.C. 1717a; 28 U.S.C. 1 note and 2461 note; 42 U.S.C. 1437z-1 and 3535(d). 0 4. In Sec. 30.20, revise paragraph (b) to read as follows: Sec. 30.20 Ethical violations by HUD employees. * * * * * (b) Maximum penalty. The maximum penalty is $18,936 for each violation. 0 5. In Sec. 30.25, revise paragraph (b) to read as follows: Sec. 30.25 Violations by applicants for assistance. * * * * * (b) Maximum penalty. The maximum penalty is $18,936 for each violation. Sec. 30.30 [Removed] 0 6. Remove Sec. 30.30. 0 7. In Sec. 30.35, revise the first sentence in paragraph (c)(1) to read as follows: Sec. 30.35 Mortgagees and lenders. * * * * * (c)(1) Amount of penalty. The maximum penalty is $9,468 for each violation, up to a limit of $1,893,610 for all violations committed during any one-year period. * * * * * * * * 0 8. In Sec. 30.36, revise the first sentence in paragraph (c) to read as follows: Sec. 30.36 Other participants in FHA programs. * * * * * (c) Amount of penalty. The maximum penalty is $9,468 for each violation, up to a limit of $1,893,610 for all violations committed during any one-year period. * * * 0 9. In Sec. 30.40, revise the first sentence in paragraph (c) to read as follows: Sec. 30.40 Loan guarantees for Indian housing. * * * * * (c) Amount of penalty. The maximum penalty is $9,468 for each violation, up to a limit of $1,893,610 for all violations committed during any one-year period. * * * 0 10. In Sec. 30.45, revise paragraph (g) to read as follows: Sec. 30.45 Multifamily and section 202 or 811 mortgagors. * * * * * (g) Maximum penalty. The maximum penalty for each violation under paragraphs (c) and (f) of this section is $47,340. * * * * * 0 11. In Sec. 30.50, revise the first sentence in paragraph (c) to read as follows: Sec. 30.50 GNMA issuers and custodians. * * * * * (c) Amount of penalty. The maximum penalty is $9,468 for each violation, up to a limit of $1,893,610 during any one-year period. * * * Sec. 30.55 [Removed] 0 12. Remove Sec. 30.55. 0 13. In Sec. 30.60, revise paragraph (c) to read as follows: Sec. 30.60 Dealers or sponsored third-party originators. * * * * * (c) Amount of penalty. The maximum penalty is $9,468 for each violation, up to a limit for any particular person of $1,893,610 during any one-year period. 0 14. In Sec. 30.65, revise paragraph (b) to read as follows: Sec. 30.65 Failure to disclose lead-based paint hazards. * * * * * (b) Amount of penalty. The maximum penalty is $16,773 for each violation. 0 15. In Sec. 30.68, revise paragraph (c) to read as follows: Sec. 30.68 Section 8 owners. * * * * * (c) Maximum penalty. The maximum penalty for each violation under this section is $36,794. * * * * * Sec. 30.69 [Removed] 0 16. Remove Sec. 30.69. PART 87--NEW RESTRICTIONS ON LOBBYING 0 17. The authority citation for part 87 is revised to read as follows: Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d). 0 18. In Sec. 87.400, revise paragraphs (a), (b), and (e) to read as follows: Sec. 87.400 Penalties. (a) Any person who makes an expenditure prohibited herein shall be subject to a civil penalty of not less than $18,936 and not more than $189,361 for each such expenditure. (b) Any person who fails to file or amend the disclosure form (see appendix B) to be filed or amended if required herein, shall be subject to a civil penalty of not less than $18,936 [[Page 38936]] and not more than $189,361 for each such failure. * * * * * (e) First offenders under paragraph (a) or (b) of this section shall be subject to a civil penalty of $18,936, absent aggravating circumstances. Second and subsequent offenses by persons shall be subject to an appropriate civil penalty between $18,936 and $189,361, as determined by the agency head or his or her designee. * * * * * PART 180--CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS MATTERS 0 19. The authority citation for part 180 is revised to read as follows: Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; 42 U.S.C. 2000d-1, 3535(d), 3601-3619, 5301-5320, and 6103. 0 20. In Sec. 180.671, revise paragraphs (a)(1) through (3) to read as follows: Sec. 180.671 Assessing civil penalties for Fair Housing Act cases. (a) * * * (1) $19,787, if the respondent has not been adjudged in any administrative hearing or civil action permitted under the Fair Housing Act or any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local governmental agency, to have committed any prior discriminatory housing practice. (2) $49,467, if the respondent has been adjudged in any administrative hearing or civil action permitted under the Fair Housing Act, or under any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local government agency, to have committed one other discriminatory housing practice and the adjudication was made during the 5-year period preceding the date of filing of the charge. (3) $98,935, if the respondent has been adjudged in any administrative hearings or civil actions permitted under the Fair Housing Act, or under any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local government agency, to have committed two or more discriminatory housing practices and the adjudications were made during the 7-year period preceding the date of filing of the charge. * * * * * PART 3282--MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS 0 21. The authority citation for part 3282 is revised to read as follows: Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461 note; 42 U.S.C. 3535(d) and 5424. 0 22. Revise Sec. 3282.10 to read as follows: Sec. 3282.10 Civil and criminal penalties. Failure to comply with these regulations may subject the party in question to the civil and criminal penalties provided for in section 611 of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed under section 611 of the Act shall be $2,750 for each violation, up to a maximum of $3,437,500 for any related series of violations occurring within one year from the date of the first violation. Dated: May 20, 2016. Helen R. Kanovsky, General Counsel. [FR Doc. 2016-14060 Filed 6-14-16; 8:45 am] BILLING CODE 4210-67-P
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appropriate to the intended use of a package containing the device bears a
prescription in vitro diagnostic product prominent and conspicuous statement Inflation Catch-Up Adjustment of Civil
shall bear the symbol statement ‘‘Rx identifying the location of the symbols Monetary Penalty Amounts
only’’ or ‘‘) only’’ or the statement glossary that is written in English or, in
‘‘Caution: Federal law restricts this the case of articles distributed solely in AGENCY: Office of the General Counsel,
device to sale by or on the order of Puerto Rico or in a Territory where the HUD.
a lll’’, the blank to be filled with the predominant language is one other than ACTION: Interim final rule.
word ‘‘physician’’, ‘‘dentist’’, English, the predominant language may
‘‘veterinarian’’, or with the descriptive be used; or SUMMARY: This interim final rule
designation of any other practitioner (iv) The symbol statement ‘‘Rx only’’ amends HUD’s civil monetary penalty
licensed by the law of the State in or ‘‘) only’’ used as provided under regulations by making inflation
which the practitioner practices to use paragraphs (a)(4) and (b)(5)(ii) of this adjustments as mandated by the Federal
or order the use of the device. section. Civil Penalties Inflation Adjustment Act
* * * * * (2) The use of symbols in device Improvements Act of 2015. HUD also
(g)(1) The applicant may provide the labeling which do not meet the removes three obsolete civil monetary
labeling information referenced in this requirements of paragraph (g)(1) of this penalty regulations previously
section in the form of: section renders a device misbranded authorized under statutes for which
(i) A symbol accompanied by under section 502(c) of the act. either HUD no longer has enforcement
explanatory text adjacent to the symbol; (3) For purposes of paragraph (g)(1) of authority or the program is no longer
(ii) A symbol not accompanied by this section: active. Lastly, HUD makes a technical
adjacent explanatory text that: (i) An SDO is an organization that is change to the regulation language
(A) Is contained in a standard that nationally or internationally recognized implementing the Program Fraud Civil
FDA recognizes under its authority in and that follows a process for standard Remedies Act which, due to a
section 514(c) of the act; development that is transparent, (i.e., typographical error under the last civil
(B) Is used according to the open to public scrutiny), where the money penalty adjustment, failed to
specifications for use of the symbol set participation is balanced, where an include language assigning a penalty for
forth in FDA’s section 514(c) appeals process is included, where the causing a false claim or statement to be
recognition; and standard is not in conflict with any made.
(C) Is explained in a paper or statute, regulation, or policy under DATES: Effective date: August 16, 2016.
electronic symbols glossary that is which FDA operates, and where the Comment due date: August 15, 2016.
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included in the labeling for the device standard is national or international in ADDRESSES: Interested persons are
and the labeling on or within the scope. invited to submit comments regarding
package containing the device bears a (ii) The term ‘‘symbols glossary’’ this interim final rule. Communications
prominent and conspicuous statement means a compiled listing of: must refer to the above docket number
identifying the location of the symbols (A) Each SDO-established symbol and title. There are two methods for
glossary that is written in English or, in used in the labeling for the device; submitting public comments. All
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![Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations 38935
24 CFR Part 87 PART 30—CIVIL MONEY PENALTIES: paragraphs (c) and (f) of this section is
CERTAIN PROHIBITED CONDUCT $47,340.
Government contracts, Grant
programs, Loan programs, Lobbying, * * * * *
■ 3. The authority citation for part 30 is
Penalties, Reporting and recordkeeping ■ 11. In § 30.50, revise the first sentence
revised to read as follows:
requirements. in paragraph (c) to read as follows:
Authority: 12 U.S.C. 1701q–1, 1703, 1723i,
24 CFR Part 180 1735f–14, and 1735f–15; 15 U.S.C. 1717a; 28 § 30.50 GNMA issuers and custodians.
U.S.C. 1 note and 2461 note; 42 U.S.C. * * * * *
Administrative practice and 1437z–1 and 3535(d).
procedure, Aged, Civil rights, Fair (c) Amount of penalty. The maximum
housing, Individuals with disabilities, ■ 4. In § 30.20, revise paragraph (b) to penalty is $9,468 for each violation, up
Investigations, Mortgages, Penalties, read as follows: to a limit of $1,893,610 during any one-
Reporting and recordkeeping § 30.20 Ethical violations by HUD
year period. * * *
requirements. employees. § 30.55 [Removed]
24 CFR Part 3282 * * * * *
(b) Maximum penalty. The maximum ■ 12. Remove § 30.55.
Administrative practice and penalty is $18,936 for each violation. ■ 13. In § 30.60, revise paragraph (c) to
procedure, Consumer protection, ■ 5. In § 30.25, revise paragraph (b) to read as follows:
Intergovernmental relations, read as follows:
Manufactured homes, Reporting and § 30.60 Dealers or sponsored third-party
recordkeeping requirements. originators.
§ 30.25 Violations by applicants for
assistance. * * * * *
Accordingly, for the reasons described
in the preamble, HUD amends 24 CFR * * * * * (c) Amount of penalty. The maximum
parts 28, 30, 87, 180, and 3282 as (b) Maximum penalty. The maximum penalty is $9,468 for each violation, up
follows: penalty is $18,936 for each violation. to a limit for any particular person of
$1,893,610 during any one-year period.
PART 28—IMPLEMENTATION OF THE § 30.30 [Removed] ■ 14. In § 30.65, revise paragraph (b) to
PROGRAM FRAUD CIVIL REMEDIES ■ 6. Remove § 30.30. read as follows:
ACT OF 1986 ■ 7. In § 30.35, revise the first sentence
§ 30.65 Failure to disclose lead-based
in paragraph (c)(1) to read as follows: paint hazards.
■ 1. The authority citation for part 28 is
revised to read as follows: § 30.35 Mortgagees and lenders. * * * * *
Authority: 28 U.S.C. 2461 note; 31 U.S.C. * * * * * (b) Amount of penalty. The maximum
3801–3812; 42 U.S.C. 3535(d). (c)(1) Amount of penalty. The penalty is $16,773 for each violation.
maximum penalty is $9,468 for each ■ 15. In § 30.68, revise paragraph (c) to
■ 2. In § 28.10, revise paragraphs (a)(1) violation, up to a limit of $1,893,610 for read as follows:
introductory text and (b)(1) introductory all violations committed during any
text and the first sentence in paragraph one-year period. * * * § 30.68 Section 8 owners.
(c) to read as follows: * * * * *
* * * * *
§ 28.10 Basis for civil penalties and ■ 8. In § 30.36, revise the first sentence (c) Maximum penalty. The maximum
assessments. in paragraph (c) to read as follows: penalty for each violation under this
section is $36,794.
(a) * * * § 30.36 Other participants in FHA
(1) A civil penalty of not more than * * * * *
programs.
$10,781 may be imposed upon any * * * * * § 30.69 [Removed]
person who makes, presents, or submits, (c) Amount of penalty. The maximum
or causes to be made, presented, or ■ 16. Remove § 30.69.
penalty is $9,468 for each violation, up
submitted, a claim that the person to a limit of $1,893,610 for all violations PART 87—NEW RESTRICTIONS ON
knows or has reason to know: committed during any one-year period. LOBBYING
* * * * * * * *
(b) * * * ■ 9. In § 30.40, revise the first sentence ■ 17. The authority citation for part 87
(1) A civil penalty of not more than in paragraph (c) to read as follows: is revised to read as follows:
$10,781 may be imposed upon any Authority: 28 U.S.C. 1 note; 31 U.S.C.
person who makes, presents, or submits, § 30.40 Loan guarantees for Indian
1352; 42 U.S.C. 3535(d).
housing.
or causes to be made, presented, or
submitted, a written statement that: * * * * * ■ 18. In § 87.400, revise paragraphs (a),
(c) Amount of penalty. The maximum (b), and (e) to read as follows:
* * * * *
penalty is $9,468 for each violation, up
(c) Limit on liability. If the claim or § 87.400 Penalties.
to a limit of $1,893,610 for all violations
statement relates to low-income housing committed during any one-year period. (a) Any person who makes an
benefits or housing benefits for the * * * expenditure prohibited herein shall be
elderly or handicapped, then a person subject to a civil penalty of not less than
■ 10. In § 30.45, revise paragraph (g) to
may be held liable only if he or she has $18,936 and not more than $189,361 for
read as follows:
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made or caused to be made the claim or each such expenditure.
statement in the course of applying for § 30.45 Multifamily and section 202 or 811 (b) Any person who fails to file or
such benefits, with respect to his or her mortgagors. amend the disclosure form (see
eligibility, or family’s eligibility, to * * * * * appendix B) to be filed or amended if
receive such benefits. * * * (g) Maximum penalty. The maximum required herein, shall be subject to a
* * * * * penalty for each violation under civil penalty of not less than $18,936
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![38936 Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
and not more than $189,361 for each PART 3282—MANUFACTURED HOME claimants may submit claims for
such failure. PROCEDURAL AND ENFORCEMENT compensation until December 18, 2020,
* * * * * REGULATIONS increases the Victim Compensation
Fund’s total funding available to pay
(e) First offenders under paragraph (a) ■ 21. The authority citation for part claims, creates different categories of
or (b) of this section shall be subject to 3282 is revised to read as follows: claims, directs the Victim Compensation
a civil penalty of $18,936, absent Fund to issue full compensation to
aggravating circumstances. Second and Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461
note; 42 U.S.C. 3535(d) and 5424. eligible claimants and imposes
subsequent offenses by persons shall be limitations on certain components of
subject to an appropriate civil penalty ■ 22. Revise § 3282.10 to read as
future loss calculations.
between $18,936 and $189,361, as follows:
DATES: Effective date: This rule is
determined by the agency head or his or
§ 3282.10 Civil and criminal penalties. effective June 15, 2016. Comment date:
her designee.
Failure to comply with these Written comments must be submitted
* * * * * regulations may subject the party in on or before July 15, 2016. Comments
question to the civil and criminal received by mail will be considered
PART 180—CONSOLIDATED HUD timely if they are postmarked on or
HEARING PROCEDURES FOR CIVIL penalties provided for in section 611 of
the Act, 42 U.S.C. 5410. The maximum before that date. The electronic Federal
RIGHTS MATTERS Docket Management System (FDMS)
amount of penalties imposed under
section 611 of the Act shall be $2,750 will accept comments until midnight
■ 19. The authority citation for part 180 for each violation, up to a maximum of Eastern Time at the end of that day.
is revised to read as follows: $3,437,500 for any related series of ADDRESSES: Please address all
Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; violations occurring within one year comments regarding this rule by U.S.
42 U.S.C. 2000d–1, 3535(d), 3601–3619, from the date of the first violation. mail to: Jordana Feldman, September
5301–5320, and 6103. 11th Victim Compensation Fund, Civil
Dated: May 20, 2016.
Division, U.S. Department of Justice,
■ 20. In § 180.671, revise paragraphs Helen R. Kanovsky,
290 Broadway, Suite 1300, New York,
(a)(1) through (3) to read as follows: General Counsel.
New York 10007. To ensure proper
[FR Doc. 2016–14060 Filed 6–14–16; 8:45 am] handling, please reference CIV Docket
§ 180.671 Assessing civil penalties for Fair
BILLING CODE 4210–67–P No. 151 on your correspondence.
Housing Act cases.
Comments may also be sent
(a) * * * electronically through http://
(1) $19,787, if the respondent has not DEPARTMENT OF JUSTICE regulations.gov using the electronic
been adjudged in any administrative comment form provided on that site. An
hearing or civil action permitted under 28 CFR Part 104 electronic copy of this document is also
the Fair Housing Act or any state or [Docket No. CIV 151] available at the http://regulations.gov
local fair housing law, or in any Web site. The Civil Division will accept
RIN 1105–AB49 attachments to electronic comments in
licensing or regulatory proceeding
conducted by a federal, state, or local James Zadroga 9/11 Victim Microsoft Word, WordPerfect, or Adobe
governmental agency, to have Compensation Fund Reauthorization PDF formats only.
committed any prior discriminatory Act FOR FURTHER INFORMATION CONTACT:
housing practice. Catherine V. Emerson, Director, Office
(2) $49,467, if the respondent has AGENCY: Department of Justice. of Management Programs, Civil
been adjudged in any administrative ACTION: Interim final rule. Division, U.S. Department of Justice,
hearing or civil action permitted under Main Building, Room 3140, 950
the Fair Housing Act, or under any state SUMMARY: On December 18, 2015, Pennsylvania Avenue NW., Washington,
or local fair housing law, or in any President Obama signed into law the DC 20530, telephone 855–885–1555
licensing or regulatory proceeding James Zadroga 9/11 Victim (TTY 855–885–1558).
conducted by a federal, state, or local Compensation Fund Reauthorization SUPPLEMENTARY INFORMATION:
government agency, to have committed Act (the ‘‘Reauthorized Zadroga Act’’).
The Act extends the September 11th Public Comments
one other discriminatory housing
practice and the adjudication was made Victim Compensation Fund of 2001 The Department is publishing this
during the 5-year period preceding the which provides compensation to any interim final rule, effective on June 15,
date of filing of the charge. individual (or a personal representative 2016, the statutory deadline for
of a deceased individual) who suffered updating the existing regulations in
(3) $98,935, if the respondent has physical harm or was killed as a result light of the statutory changes made by
been adjudged in any administrative of the terrorist-related aircraft crashes of the Reauthorized Zadroga Act.
hearings or civil actions permitted September 11, 2001, or the rescue and The Department is providing a 30-day
under the Fair Housing Act, or under recovery efforts during the immediate period for public comment. The
any state or local fair housing law, or in aftermath of such crashes or the debris regulatory text of this rule is restating all
any licensing or regulatory proceeding removal efforts that took place in the of the provisions of 28 CFR part 104, as
conducted by a federal, state, or local immediate aftermath of those crashes. revised, for ease of reference and
government agency, to have committed Special Master Sheila L. Birnbaum, application for the filing of claims.
ehiers on DSK5VPTVN1PROD with RULES
two or more discriminatory housing appointed by the Attorney General to Commenters should be aware, though,
practices and the adjudications were administer the Fund, is issuing this that only certain portions of the existing
made during the 7-year period Interim Final Rule to address changes regulations are being revised at this
preceding the date of filing of the required by the Reauthorized Zadroga time, and the Department is only
charge. Act. Specifically, the statute extends the soliciting public comments on the
* * * * * time period during which eligible changes being made from the existing
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Document Created: 2016-06-15 02:21:21
Document Modified: 2016-06-15 02:21:21
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Interim final rule. | |
| Contact | Dane Narode, Associate General Counsel, Office of Program Enforcement, Department of Housing and Urban Development, 1250 Maryland Avenue SW., Suite 200, Washington, DC 20024; telephone number 202-245-4141 (this is not a toll-free number). Hearing- or speech-impaired individuals may access this number via TTY by calling the toll-free Federal Information Relay Service at 800-877- 8339. | |
| FR Citation | 81 FR 38931 | |
| RIN Number | 2501-AD79 | |
| CFR Citation | 24
CFR
180 24 CFR 28 24 CFR 30 24 CFR 3282 24 CFR 87 | |
| CFR Associated | Aged; Civil Rights; Fair Housing; Individuals with Disabilities; Investigations; Mortgages; Administrative Practice and Procedure; Claims; Fraud; Penalties; Consumer Protection; Intergovernmental Relations; Manufactured Homes; Grant Programs-Housing and Community Development; Loan Programs-Housing and Community Development; Mortgage Insurance; Government Contracts; Grant Programs; Loan Programs; Lobbying and Reporting and Recordkeeping Requirements |
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