81 FR 40819 - Civil Monetary Penalties Inflation Adjustment

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

Federal Register Volume 81, Issue 121 (June 23, 2016)

Page Range		40819-40820
FR Document		2016-14675

The Corporation for National and Community Service (CNCS) is updating its regulations to reflect required inflation-related increases to the civil monetary penalties in its regulations, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

Federal Register, Volume 81 Issue 121 (Thursday, June 23, 2016)

[Federal Register Volume 81, Number 121 (Thursday, June 23, 2016)]
[Rules and Regulations]
[Pages 40819-40820]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14675]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 1230 and 2554

RIN 3045-AA65


Civil Monetary Penalties Inflation Adjustment

AGENCY: Corporation for National and Community Service.

ACTION: Interim final rule.

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SUMMARY: The Corporation for National and Community Service (CNCS) is 
updating its regulations to reflect required inflation-related 
increases to the civil monetary penalties in its regulations, pursuant 
to the Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015.

DATES: Effective date: This rule is effective August 1, 2016.
    Comment due date: Technical comments may be submitted until July 
25, 2016.

ADDRESSES: You may send your comments electronically through the 
Federal government's one-stop rulemaking Web site at 
www.regulations.gov. Also, you may mail or deliver your comments to 
Phyllis Green, Executive Assistant, Office of General Counsel, at the 
Corporation for National and Community Service, 250 E Street SW., 
Washington, DC 20525. Due to continued delays in CNCS's receipt of 
mail, we strongly encourage comments to be submitted online 
electronically. The TDD/TTY number is 800-833-3722. You may request 
this notice in an alternative format for the visually impaired.

FOR FURTHER INFORMATION CONTACT: Phyllis Green, Executive Assistant, 
Office of General Counsel, at 202-606-6709 or email to [email protected]. 
Individuals who use a telecommunications device for the deaf (TTY-TDD) 
may call 800-833-3722 between 8:00 a.m. and 8:00 p.m. Eastern Time, 
Monday through Friday.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Corporation for National and Community Service (CNCS) is a 
federal agency that engages more than five million Americans in service 
through its AmeriCorps, Senior Corps, Social Innovation Fund, and 
Volunteer Generation Fund programs, and leads the President's national 
call to service initiative, United We Serve. For more information, 
visit NationalService.gov.
    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 
701 of Pub. L. 114-74) (the ``Act'') to improve the effectiveness of 
civil monetary penalties and to maintain the deterrent effect of such 
penalties. The Act requires agencies to make a ``catch-up'' adjustment 
to the level of civil monetary penalties through an interim final 
rulemaking and to adjust the civil monetary penalties for inflation 
annually.

II. Method of Calculation

    CNCS identified two civil monetary penalties in its regulations and 
calculated the catch-up adjustments as specified in the February 24, 
2016, OMB Memorandum of the Heads of Executive Departments and 
Agencies, M-16-06, Implementation of the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015. A civil monetary 
penalty under the act is a penalty, fine, or other sanction that is for 
a specific monetary amount as provided by Federal law or has a maximum 
amount provided for by federal law and is assessed or enforced by an 
agency pursuant to Federal law and is assessed or enforced pursuant to 
an administrative proceeding or a civil action in the Federal courts. 
(See 28 U.S.C. 2461 note).
    The inflation adjustment for each applicable civil monetary penalty 
is determined using the percent increase in the Consumer Price Index 
for all Urban Consumers (CPI-U) for the month of October of the year in 
which the amount of each civil money penalty was most recently 
established or modified.
    CNCS identified two civil penalties in its regulations: (1) The 
penalty associated with Restrictions on Lobbying (45 CFR 1230.400) and 
(2) the penalty associated with the Program Fraud Civil Remedies Act 
(45 CFR 2554.1).
    In 1989, Congress established civil monetary penalties related to 
Restrictions on Lobbying (Section 319, Pub. L. 101-121; 31 U.S.C. 1352) 
ranging from $10,000 to $100,000. The multiplier for 1989 is 1.89361. 
Thus, the new range of possible civil monetary penalties is from 
$18,936 to $189,361.
    The Program Fraud Civil Remedies Act of 1986 (Pub. L. 99-509) 
established a civil monetary penalty with an upper limit of $5,000. The 
multiplier for 1986 is 2.15628. Thus, the new upper limit of the civil 
monetary penalty is $10,781.

[[Page 40820]]

III. Summary of Final Rule

    This final rule adjusts the civil monetary penalty amounts related 
to Restrictions on Lobbying (45 CFR 1230.400) and the Program Fraud 
Civil Remedies Act of 1986 (45 CFR 2554.1). The range of civil monetary 
penalties related to Restrictions on Lobbying increase from $10,000 to 
$100,000 to $18,936 to $189,361. The civil monetary penalties for the 
Program Fraud Civil Remedies Act of 1986 increase from up to $5,000 to 
up to $10,781.

IV. Regulatory Procedures

A. Determination of Good Cause for Publication Without Notice and 
Comment

    CNCS finds, under 5 U.S.C. 553(b)(3)(B), that there is good cause 
to except this rule from the public notice and comment provisions of 
the Administrative Procedure Act, 5 U.S.C. 553(b). Because CNCS is 
implementing a final rule pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015, which requires CNCS 
to update its regulations based on a prescribed formula, CNCS has no 
discretion in the nature or amount of the change to the civil monetary 
penalties. Therefore, notice and comment for these proscribed updates 
is impracticable and unnecessary. As an interim final rule, no further 
regulatory action is required for the issuance of this legally binding 
rule. If you would like to provide technical comments, however, they 
may be submitted until July 25, 2016.

B. Review Under Procedural Statutes and Executive Orders

    CNCS has determined that making technical changes to the amount of 
civil monetary penalties in its regulations does not trigger any 
requirements under procedural statutes and Executive Orders that govern 
rulemaking procedures.

V. Effective Date

    This rule is effective August 1, 2016. The adjusted civil penalty 
amounts apply to civil penalties assessed after August 1, 2016 when the 
violation occurred after November 2, 2015. If the violation occurred 
prior to November 2, 2015 or a penalty was assessed prior to August 1, 
2016, the pre-adjustment civil penalty amounts in effect prior to 
August 1, 2106 will apply.

List of Subjects

45 CFR Part 1230

    Government contracts, Grant programs, Loan programs, Lobbying, 
Penalties, Reporting and recordkeeping requirements.

45 CFR Part 2554

    Claims, Fraud, Organization and functions (Government agencies), 
Penalties.

    For the reasons discussed in the preamble, under the authority of 
42 U.S.C. 12651c(c), the Corporation for National and Community Service 
amends chapters XII and XXV, title 45 of the Code of Federal 
Regulations as follows:

PART 1230--NEW RESTRICTIONS ON LOBBYING

0
1. The authority citation for part 12301 continues to read as follows:

    Authority: Section 319, Pub. L. 101-121 (31 U.S.C. 1352); Pub. 
L. 93-113; 42 U.S.C. 4951, et seq.; 42 U.S.C. 5060


Sec.  1230.400  [Amended]

0
2. Amend Sec.  1230.400 by:
0
a. In paragraphs (a), (b), and (e), removing ``$10,000'' and adding, in 
its place, ``$18,936'' each place it appears.
0
b. In paragraphs (a), (b), and (e), removing ``$100,000'' and adding, 
in its place, ``$189,361'' each place it appears.

Appendix A to Part 1230 [Amended]

0
3. Amend appendix A to part 1230 by:
0
a. Removing ``$10,000'' and adding, in its place, ``$18,936'' each 
place it appears.
0
b. Removing ``$100,000'' and adding, in its place, ``$189,361'' each 
place it appears.

PART 2554--PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS

0
4. The authority citation for part 2554 continues to read as follows:

    Authority: Pub. L. 99-509, Secs. 6101-6104, 100 Stat. 1874 (31 
U.S.C. 3801-3812); 42 U.S.C. 12651c-12651d.


Sec.  2554.1  [Amended]

0
5. Amend Sec.  2554.1 by removing ``$5,000'' in paragraph (b) and 
adding, in its place, ``$10,781''.

    Dated: June 16, 2016.
Jeremy Joseph,
General Counsel.
[FR Doc. 2016-14675 Filed 6-22-16; 8:45 am]
 BILLING CODE 6050-28-P

40820 Federal Register / Vol. 81, No. 121 / Thursday, June 23, 2016 / Rules and Regulations

III. Summary of Final Rule Penalties, Reporting and recordkeeping FEDERAL COMMUNICATIONS
This final rule adjusts the civil requirements. COMMISSION
monetary penalty amounts related to 45 CFR Part 2554 47 CFR Part 1
Restrictions on Lobbying (45 CFR
1230.400) and the Program Fraud Civil Claims, Fraud, Organization and [FCC 16–70]
Remedies Act of 1986 (45 CFR 2554.1). functions (Government agencies),
The range of civil monetary penalties Penalties. Service by Email for Notice of Petitions
related to Restrictions on Lobbying for Review and Appeals
For the reasons discussed in the
increase from $10,000 to $100,000 to AGENCY: Federal Communications
preamble, under the authority of 42
$18,936 to $189,361. The civil monetary Commission.
penalties for the Program Fraud Civil U.S.C. 12651c(c), the Corporation for
National and Community Service ACTION: Final rule.
Remedies Act of 1986 increase from up
to $5,000 to up to $10,781. amends chapters XII and XXV, title 45
of the Code of Federal Regulations as SUMMARY: The Federal Communications
IV. Regulatory Procedures Commission (Commission) amends its
follows:
rules to allow and in certain
A. Determination of Good Cause for circumstances to require parties to give
Publication Without Notice and PART 1230—NEW RESTRICTIONS ON
LOBBYING the Commission notice of lawsuits by
Comment email. First, it requires persons
CNCS finds, under 5 U.S.C. petitioning for judicial review who wish
■ 1. The authority citation for part
553(b)(3)(B), that there is good cause to to participate in a ‘‘judicial lottery’’ to
12301 continues to read as follows: notify the Commission of the petition by
except this rule from the public notice
and comment provisions of the Authority: Section 319, Pub. L. 101–121 email. This method will allow timely
Administrative Procedure Act, 5 U.S.C. (31 U.S.C. 1352); Pub. L. 93–113; 42 U.S.C. service, and will eliminate security
553(b). Because CNCS is implementing 4951, et seq.; 42 U.S.C. 5060 concerns that arise through in-person
a final rule pursuant to the Federal Civil service. Further, the new rule
§ 1230.400 [Amended]
Penalties Inflation Adjustment Act encourages, but does not require, notice
Improvements Act of 2015, which ■ 2. Amend § 1230.400 by: by email for persons who petition for
requires CNCS to update its regulations review but do not seek to participate in
■ a. In paragraphs (a), (b), and (e), a lottery. It likewise encourages, but
based on a prescribed formula, CNCS
removing ‘‘$10,000’’ and adding, in its does not require, notice by email for
has no discretion in the nature or
place, ‘‘$18,936’’ each place it appears. persons who judicially appeal
amount of the change to the civil
monetary penalties. Therefore, notice ■ b. In paragraphs (a), (b), and (e), Commission decisions.
and comment for these proscribed removing ‘‘$100,000’’ and adding, in its DATES: Effective July 25, 2016.
updates is impracticable and place, ‘‘$189,361’’ each place it appears. FOR FURTHER INFORMATION CONTACT:
unnecessary. As an interim final rule, Richard Welch, 202–418–7225.
Appendix A to Part 1230 [Amended]
no further regulatory action is required SUPPLEMENTARY INFORMATION: This is a
for the issuance of this legally binding ■ 3. Amend appendix A to part 1230 by: summary of the Commission’s Order,
rule. If you would like to provide FCC 16–70, adopted on June 1, 2016,
technical comments, however, they may ■ a. Removing ‘‘$10,000’’ and adding, in
its place, ‘‘$18,936’’ each place it and released on June 3, 2016. The full
be submitted until July 25, 2016. text of this document will be available
appears.
B. Review Under Procedural Statutes for public inspection and copying via
■ b. Removing ‘‘$100,000’’ and adding, ECFS, and during regular business
and Executive Orders
in its place, ‘‘$189,361’’ each place it hours at the FCC Reference Information
CNCS has determined that making appears. Center, Portals II, 445 12th Street SW.,
technical changes to the amount of civil
Room CY–A257, Washington, DC 20554.
monetary penalties in its regulations PART 2554—PROGRAM FRAUD CIVIL
does not trigger any requirements under REMEDIES ACT REGULATIONS Synopsis
procedural statutes and Executive 1. By this order, we revise Section
Orders that govern rulemaking ■ 4. The authority citation for part 2554 1.13 of our rules to allow and in certain
procedures. continues to read as follows: circumstances require parties to give the
V. Effective Date Authority: Pub. L. 99–509, Secs. 6101– Commission notice of lawsuits by email.
6104, 100 Stat. 1874 (31 U.S.C. 3801–3812); First, we revise 47 CFR 1.13(a)(1) of our
This rule is effective August 1, 2016. rules to change the procedure by which
The adjusted civil penalty amounts 42 U.S.C. 12651c–12651d.
a party petitioning for review of a
apply to civil penalties assessed after § 2554.1 [Amended] Commission decision under 47 U.S.C.
August 1, 2016 when the violation 402(a) must notify the Commission in
occurred after November 2, 2015. If the ■ 5. Amend § 2554.1 by removing order to take advantage of the random
violation occurred prior to November 2, ‘‘$5,000’’ in paragraph (b) and adding, selection procedures described in 28
2015 or a penalty was assessed prior to in its place, ‘‘$10,781’’. U.S.C. 2112. That statute provides for a
August 1, 2016, the pre-adjustment civil
asabaliauskas on DSK3SPTVN1PROD with RULES

Dated: June 16, 2016. lottery to select a court when parties
penalty amounts in effect prior to have petitioned for review of the same
August 1, 2106 will apply. Jeremy Joseph,
FCC decision in more than one court,
General Counsel.
List of Subjects provided that petitioners serve a copy of
[FR Doc. 2016–14675 Filed 6–22–16; 8:45 am]
the petitions for review on the agency
45 CFR Part 1230 BILLING CODE 6050–28–P within ten days of issuance of the order
Government contracts, Grant under review. 28 U.S.C. 2112(a)(1), (3).
programs, Loan programs, Lobbying, Because the procedure is time sensitive

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Document Created: 2018-02-08 07:41:41
Document Modified: 2018-02-08 07:41:41

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.
Dates		Effective date: This rule is effective August 1, 2016.
Contact		Phyllis Green, Executive Assistant, Office of General Counsel, at 202-606-6709 or email to [email protected] Individuals who use a telecommunications device for the deaf (TTY-TDD) may call 800-833-3722 between 8:00 a.m. and 8:00 p.m. Eastern Time, Monday through Friday.
FR Citation		81 FR 40819
RIN Number		3045-AA65
CFR Citation		45 CFR 1230 45 CFR 2554
CFR Associated		Government Contracts; Grant Programs; Loan Programs; Lobbying; Penalties; Reporting and Recordkeeping Requirements; Claims; Fraud and Organization and Functions (government Agencies)